DEKRA increases turnover and positions itself for the future

Targets for 2022 achieved

• Turnover increased by 7.4% to 3.8 billion euros in 2022
• Investments increased by around a third to 143 million euros
• Strong demand for battery and charging infrastructure testing services
• More than 500 services for sustainable business on offer
• Leading position in cyber security and AI secured through acquisitions and joint ventures
• Further markets opened up in the automotive testing business
• Optimistic outlook for the 2023 financial year: renewed sales growth in the mid to high single-digit range expected

DEKRA increased its sales in the 2022 financial year as planned and implemented important strategic projects. “We had the right answers to the challenges of the past year and are very satisfied with the global sales growth of 7.4%,” said DEKRA CEO Stan Zurkiewicz at the annual press conference. “At the same time, we have invested heavily in our future business, launched innovative services, recently filled our newly created Management Board positions and laid the foundations for profitable growth,” said Zurkiewicz.

Sales increase in Germany, double-digit growth in the Americas and Asia-Pacific regions

Sales growth in Germany, double-digit growth in the Americas, COVID-19 and the war in Ukraine were also the main challenges for DEKRA last year. Nevertheless, the company was able to increase its global turnover by 7.4% to 3.8 billion euros. The increase in the domestic market of Germany was 9.9% (2.4 billion euros); in the strategic growth regions of the Americas and Asia-Pacific, the company achieved double-digit growth (Americas: +19.9% / 113.5 million euros; Asia-Pacific: +10.5% / 244.3 million euros).

All business areas contributed to the positive sales trend in 2022, with vehicle inspections once again being the most important pillar with sales of 1.3 billion euros (+7.4%). Costa Rica and Spain were added as new markets, putting the company on track for around 30 million inspections per year. The fields of claims settlement & appraisals (+6.5% to 515 million euros) and product testing (+7.3% to 318 million euros) also achieved high growth rates, while the company's adjusted operating result (EBIT) in 2022 was up slightly on the previous year at 226.4 million euros (226.0 million euros). The adjusted EBIT margin amounted to 6.0% (previous year: 6.4%). Against the backdrop of rising interest rates and volatile financial markets, DEKRA increased its already strong equity ratio to 41% (previous year: 33.5%). Compared to the previous year, the investment volume also increased by around a third to 143 million euros. "Even in economically challenging times, we are not cutting back on our future. On the contrary: in 2022, we invested more than ever in our growth, both in the development of new services and in acquisitions to accelerate our transformation," explained Zurkiewicz. The number of employees has also increased; at the end of 2022, around 48,600 people in around 60 countries were working for DEKRA.cas and Asia-Pacific

Optimistic outlook for 2023

DEKRA has made a good start to 2023: In the first quarter, sales were up 12.8% on the previous year at 990 million euros. DEKRA CEO Stan Zurkiewicz is also optimistic about the year as a whole. "We are confident that we can continue to grow in the mid to high single-digit range despite geopolitical and macroeconomic risks. Thanks to our strong global market positions and a convincing portfolio of new services in the focus areas of future mobility, cyber security and sustainability."

DEKRA aims to reach the top position and increase profitability in new service areas by 2025

With its Strategy 2025, DEKRA has made it clear what contribution the company wants to make to the success of what is probably the greatest transformation of our society. At its core, it is about checking the numerous innovations that are emerging in the fight against climate change and in the course of digitalization for risks and safeguarding them.

"We have been ensuring safe technologies, systems, products and production processes for 100 years, and it feels like innovations are currently emerging every second, which is important in order to stop climate change as quickly as possible. Despite this fast pace, people should be able to trust the many innovations in the real and digital world, whether electric cars, hydrogen infrastructures or artificial intelligence," explained the DEKRA CEO. DEKRA's most important task is therefore to contribute its expertise to national and international committees so that suitable testing and certification procedures can be developed quickly for these innovations. DEKRA is focusing on the areas of mobility of the future, cyber security and sustainability. At the same time, the nature of the services will change; for example, more remote services and services based on data analysis and AI will be offered. With the help of Strategy 2025, DEKRA aims to remain the undisputed global market leader in automotive testing and become the world's leading provider of tests and certifications for cyber security and sustainability.The EBIT margin is expected to average between 8% and 9% by the middle of the decade.To achieve this, the company is streamlining and digitalizing processes and planning further measures, such as portfolio adjustments.

Internal changes for profitable growth

In order to implement Strategy 2025 in the best possible way, two new Management Board positions were also created in 2022; the corresponding Management Board members were appointed by the Supervisory Board in April 2023: Petra Finke (55) will become the company's first Chief Digitalization Officer on 1 July. Peter Laursen (47) has already been working for DEKRA for ten years and took over the newly created position of Chief Operating Officer in April. “Petra Finke and Peter Laursen will make a decisive contribution to expanding our business success and accelerating DEKRA's digital transformation,” commented the CEO on the appointments.Organizational changes such as the formation of the Germany, Austria, Switzerland (GSA) region - under the leadership of the previous Head of Germany, Guido Kutschera - are also intended to accelerate expansion.

Mobility of the future: services for electromobility in high demand in 2022

DEKRA has launched numerous services for safe and sustainable mobility in 2022. For example, the patented quick test for traction batteries in electric vehicles was rolled out in Germany, Benelux and Scandinavia, allowing a reliable statement to be made about the so-called “state of health” of the traction battery within a few minutes. 90 vehicle models can already be tested. Further models and sales markets will be added in 2023.

In Arnhem (Netherlands), the company has also opened an open-area test facility for measuring electromagnetic compatibility (EMC). In contrast to conventional test facilities, vehicles of any size can be tested there, including electric buses and trucks. One of the first customers was the young Swedish start-up Volta Trucks.

DEKRA is also active in the field of hydrogen mobility. Since 2022, the experts have been supporting the startup hylane in putting the first commercially operated hydrogen-powered truck rental fleet on the road in Germany.

A new test bench for electric motors and drive axles was put into operation at the DEKRA Technology Center in Klettwitz (Germany). The drive and emissions laboratory is consistently geared towards the future market requirements of electromobility. For example, consumption measurements were carried out on the prototype of the BMW iX5 Hydrogen car. The site is to be further expanded by 2024: A new test center for automotive and stationary battery systems is being built. In addition to mechanical tests, performance and environmental tests as well as abuse tests can also be carried out there in future. DEKRA is investing a total amount in the high double-digit millions here.

Automated and connected driving can be tested from a single source

The test center at theDEKRA Lausitzring in Klettwitz is also set to play an even greater role in automated and connected driving than before and become the world's largest independent test site for these technologies.DEKRA received planning permission for a new test field at the site last year. This will be completed in summer 2023. DEKRA experts will then be able to test automated driving functions for vehicle manufacturers, suppliers and development service providers on the flexible city courses in a wide variety of urban environments - be it in the narrow streets of a small town or in the canyons of large metropolitan areas.

In China, DEKRA awarded the company Black Sesame Technologies the ISO 26262:2018 ASIL D process certificate last year after a year of intensive collaboration as the world's first supplier of automotive-grade computing chips for autonomous driving.The standard covers functional safety requirements throughout the entire product life cycle.

Clear focus: one third of all DEKRA services are focused on sustainability

“In 2022, we were already able to offer more than 500 services relating to sustainability and the key topics of energy transition, environmental social governance (ESG) and the circular economy - that's around a third of our entire service portfolio,” explained the DEKRA CEO. The strong growth in the range of services underscores DEKRA's focus on sustainability services: for example, the company validates the carbon footprint of consumer goods; its international customer base includes Logitech and Olympus.

In 2022, there were also forward-looking orders relating to renewable energies. DEKRA tests and certifies wind turbines, hydrogen plants and pipelines and solar modules, for example. Last summer, the company inaugurated its largest and most modern solar laboratory in Shanghai, China: DEKRA covers the entire renewable energy value chain on an area of 2,600 square meters. This includes testing, inspection, certification, verification and advice on all aspects of energy generation and its technologies.

"Why can people trust DEKRA? Because our experts are absolutely impartial. We are not beholden to investors, industrial groups or politicians. We are guided solely by our association's statutes, which require us to ensure the technical safety and sustainability of our facilities. That is our sole mission," says Zurkiewicz.

The fact that DEKRA convincingly implements the topic of sustainability in its business model and internally has once again been independently certified. EcoVadis - the leading international standard for sustainability in global value chains - awarded DEKRA another Platinum Medal in 2023. “We are proud to be among the top 1 percent of sustainable companies in the ranking,” said CFO Wolfgang Linsenmaier, who is also responsible for sustainability on the DEKRA Board of Management.

With acquisitions and joint ventures, DEKRA also wants to be number one in cyber security and artificial intelligence

In addition to physical integrity, security today also means protection against data theft and cyber attacks, which is particularly important in some sectors, including the automotive and medical industries, critical infrastructure such as power grids, the “Internet of Things” for consumers and the information and communications sector. Accordingly, DEKRA is focusing in particular on the development of standards and test procedures for these industries and is the first provider worldwide to offer a special cyber security test seal for charging stations for electric vehicles. “With our offer, manufacturers of charging equipment can better protect their products against the most common threats from cyber criminals,” says the DEKRA boss.

The company is also well positioned when it comes to mobile app security: since last year, DEKRA has been one of only five companies worldwide authorized by the App Defense Alliance (ADA) to offer security assessments for Google Playstore apps. This allows Google partners and app developers to quickly and reliably assess whether their software complies with industry standards such as MASA. DEKRA intends to rapidly develop the Asia-Pacific region with the recent acquisition of Onward Security (Taiwan), which offers very good solutions that are already established on the market in all of DEKRA's key segments. “Cyber security is expected to have a global market volume of around 250 billion euros by 2035,” says Stan Zurkiewicz, “and our goal is to play a key role in shaping this market.”

The growth potential for applications with artificial intelligence (AI) is also high; experts expect a total volume of 150 billion US dollars by 2028.ensuring secure AI applications is time-critical in view of the current dynamics in a market that is not yet regulated. DEKRA supports its customers in ensuring the reliability and security of their AI technology through our testing and consulting services. DEKRA intends to establish the CertifAI joint venture with the auditing and consulting firmPwC and the Innovation Fund of the City of Hamburg in the near future. The company will certify AI applications for trustworthiness.

DEKRA Annual Report 2022/23:
https://gb2023.dekra-online.de