MUNICH, Germany, May 23, 2012 / — In 2011 TUV SUD set new records for revenue, income and headcount.The international service corporation increased its revenue to almost EUR 1.7 billion (2010: EUR 1.55 billion). Earnings before interest and taxes (EBIT) rose by 12 per cent to around EUR 160 million (2010: EUR 143 million). The number of people working for the largest German TUV organization grew by 1,100 to over 17,000 employees worldwide.
At today’s annual results press conference in Munich, Dr Axel Stepken, Chairman of the Board of Management of TUV SUD, emphasized, “TUV SUD is increasingly turning into a global player: our revenue from international activities increased by more than 13 per cent in 2011.” The company generated around 35 per cent of its revenue abroad in 2011 – a year-on-year increase of 2 percentage points. In addition, TUV SUD also further reinforces its already strong position on the fiercely competitive domestic market, increasing its revenue in Germany by 5.5 per cent in 2011.
In 2011, the technical service provider grew worldwide throughout all regions and divisions. The INDUSTRY strategic business segment improved its revenue to EUR 665 million (a year-on-year plus of 11 per cent). In the MOBILITY strategic business segment revenue rose to EUR 593 million (a plus of 7.5 per cent). And in spite of sales of companies, the CERTIFICATION strategic business segment still managed to increase its revenue to EUR 418 million in 2011 (a plus of 5 per cent).
Global growth: acquisition of 10 companies / start of vehicle inspection business in India
Numerous acquisitions also contributed to the company’s success. Since January 2011 TUV SUD has acquired a total of 10 companies in Japan, South Africa, Canada, the UK, Italy and Germany. In South Africa, for example, TUV SUD invested in three non-related companies, benefiting today from growth in three major business areas (vehicle inspection, industrial testing and real estate services) at the southern tip of Africa.
In 2012 TUV SUD will resolutely continue on its path of developing new markets. The company will be the first European service provider to enter the vehicle inspection market in India. TUV SUD’s first vehicle inspection centre will be opened in New Delhi in June.
Stepken announced that this year would again see numerous international projects and acquisitions.
Expansion in technologies of tomorrow: electromobility, renewables and embedded systems
The company anticipates strong impetus from new services in technologies of tomorrow. As far as safety in electromobility is concerned, TUV SUD is well on the way to becoming the top international provider of testing and certification services. Here, TUV SUD’s reinforcement of its international network of testing laboratories for high-voltage batteries plays a central role. Today TUV SUD already tests batteries in six laboratories on five continents according to international standard criteria; the heart of the network is the new battery testing centre opened in Garching near Munich last year.
In the field of renewables, TUV SUD focuses on wind and solar power. In 2011, TUV SUD succeeded in doubling its revenue generated in the areas of wind power and photovoltaics. According to Stepken this area offers potential for a further rise in revenue: “In the next three years, we will significantly exceed the revenue threshold of EUR 50 million with our services for energy from renewable sources.”
The success of the energy revolution depends on the modernization and upgrading of electricity grids to smart grids, i.e. intelligent networks in which devices can communicate with one another. TUV SUD pools its consulting and certification services in this area in its new Smart Grid Competence Center located in Munich. With smart grids as a starting-point, TUV SUD will gradually establish further competence centres focusing on the deployment of embedded systems, i.e. microprocessors that fulfil diverse tasks as parts of devices, systems and machines – a central, high-potential cross-industry technology. Stepken emphasized, “Our objective is to establish TUV SUD as the top service provider for ensuring the safety and reliability of embedded systems.”
The Board of Management of TUV SUD AG (from left to right): Dirk Eilers, Dr. Axel Stepken, Horst Schneider, Karsten Xander, Dr. Peter Klein
Ambitious: TUV SUD aims to reach the 2 billion euro threshold as its revenue target for 2013
TUV SUD intends to maintain its high growth pace of recent years in the near future. “We plan to increase our revenue to over EUR 1.8 billion this year and have set ourselves a revenue target of around 2 billion in 2013,” emphasized Stepken. This growth in revenue will also be reflected in the number of employees: TUV SUD plans to create over 1,000 new jobs worldwide in both 2012 and 2013.
The full-length version of this press release on the annual results press conference, further in-depth information and numerous photos are available at www.tuevsued.de/balancesheetpressconference
