TÜV SÜD continues on course for growth: revenue exceeds EUR 2 billion
- New records in 2014: revenue of EUR 2.061 billion and earnings of EUR 187 million (adjusted EBIT)
- Global player: TÜV SÜD already has more employees abroad than in Germany
- Major investments: in 2014, total investments in the future and in acquisitions amounted to around EUR 100 million
- Growth markets: innovative mobility, renewable energy and data security/Industry 4.0
- Dedicated to safety since 1866: in 2016 TÜV SÜD will celebrate its 150th anniversary
Munich. Growing strongly in 2014, TÜV SÜD set new records in revenue, earnings and headcount. Last year the international service corporation increased its revenue by over 6 per cent to almost EUR 2.061 billion (2013: EUR 1.934 billion); earnings before interest and taxes (adjusted EBIT) rose by 9 per cent year-on-year to around EUR 187 million (2013: EUR 171 million). The number of people working for the largest German TÜV organisation grew to over 22,000 employees worldwide last year.
“TÜV SÜD has long since grown beyond its national borders. Today, we are a global player. Our services are in rising demand around the globe – the reason why we already employ more staff abroad than in Germany“, emphasised Dr Axel Stepken, Chairman of the Board of Management of TÜV SÜD AG, at the company's annual results press conference in Munich today.
According to Stepken, TÜV SÜD is set to continue on its growth trajectory. In 2015, TÜV SÜD will grow at a similar pace to 2014, continuing to expand its international business and recruiting new employees worldwide. TÜV SÜD’s acquisitions also reflect the company’s course of international expansion. In 2014 TÜV SÜD acquired six companies in locations including Singapore, Turkey and the USA. Together with these acquisitions, TÜV SÜD invested around EUR 100 million in expanding its business in 2014.
In light of this, when presenting the financial statement Dr Matthias J. Rapp, CFO of TÜV SÜD AG, emphasised, “TÜV SÜD has a very sound financial structure and is excellently prepared for continuing to position itself in promising business areas and make significant investments in innovative technologies in the future.”
Broadly based success: significant growth across all segments and regions
All TÜV SÜD segments contributed to the company’s success in fiscal 2014:
The INDUSTRY segment increased its revenue by over 10 per cent to EUR 880 million, in the MOBILITY segment revenue grew by around 5 per cent to EUR 609 million, and the CERTIFICATION segment recorded a year-on-year plus of almost 6 per cent to EUR 488 million.
The company’s diversification is a plus in every respect: “TÜV SÜD’s strength is evident both in Germany and abroad. Even in our fiercely competitive home market of Germany, we managed to increase our revenue by more than 4 per cent in 2014 – again, strong impetus for growth came from Asia, where revenue rose by 11 per cent, and the Americas, which recorded growth in revenue of almost 16 per cent”, underlined Rapp.
Expansion of the portfolio of services for renewable energy
The fact that we have positioned ourselves in innovative technological areas of the future is one of the key elements of our growth. Over recent years, TÜV SÜD has continuously expanded its activities in the field of renewables, particularly wind energy. “The market for wind energy is becoming increasingly mature and international”, explained Stepken. “Recently, for example, we completed type testing of a new wind turbine made by the Chinese manufacturer Dongfang Electric. The turbine will be used at various locations including the Blaiken wind farm in Sweden.”
As the market for wind energy grows, so does the demand for testing and inspection. Germany alone has almost 25,000 onshore wind turbines, which need to be inspected every two years. In a pilot project, TÜV SÜD tested the use of remotely controlled drones equipped with cameras for wind turbine inspection. Use of the drones would reduce the time needed for inspection to a quarter of the time needed for the conventional inspection carried out by tower climbers.
TÜV SÜD is also one of the key players in the offshore wind energy market. In 2014, TÜV SÜD's experts completed certification of the Dutch Gemini wind farm in the North Sea and were awarded the contract for certification of the “Sandbank” offshore project off the German island of Sylt. TÜV SÜD will also carry out certification of the “Nordsee One” wind farm, with 54 wind turbines off the island of Juist. After completion in 2017, the wind farm will deliver enough power to supply around 400,000 households with electricity.
Future-focused strategy: ensuring data security for Industry 4.0
The spread of digitisation throughout virtually all areas of the economy and society is another important field of growth for the international technical services group.
”By accompanying pilot projects and developing in-house solutions, we are supporting this trend across a wide range of industries”, emphasised Stepken. “All our activities in this field revolve around the central question of how to use the opportunities of digitisation while keeping the associated risks to a minimum.”
For example, TÜV SÜD is a member of the SmartFactory KL initiative, which tests the use of innovative information and communication technologies in the field, i.e. in industrial production. And at Hannover Messe, the company’s experts recently presented a position paper on the modular certification of integrated production systems which will be used in Industry 4.0.
From new drive systems to automated driving – TÜV SÜD ensures safety in mobility
Klemens Schmiederer, Member of the Board of Management of TÜV SÜD since February 2015, emphasised the importance of third-party testing for the market acceptance of innovative technologies such as e-mobility: “The offer of hybrid-electric and fully electric cars is growing steadily. Consumers must be able to rely on the information provided about range and vehicle safety. TÜV SÜD is supporting manufacturers in this area by providing performance, reliability and crash tests. Six testing laboratories in Germany, USA, Canada, China, Korea and Singapore, offering standardised testing facilities and test methods, are assisting our customers in this field, while testing laboratory number seven will be opened in Japan this year.“
Schmiederer also sees major opportunities for TÜV SÜD in the field of automated driving: “In the design and development phase, our expertise will assist manufacturers, paving the way for testing on public roads. Later on, our know-how will be in high demand for approval and operation.” Based on its long-standing expertise in the rail sector, where partially and fully automated driving are part of everyday operations, TÜV SÜD has valuable experience in this field that can be transferred to the automotive sector.
Over 12 million periodic vehicle inspections in Germany and Turkey
By introducing new test methods, TÜV SÜD also reflects increasingly complex automotive technologies in its periodic technical inspections. With effect from 1 July 2015, the experts will use a new special test instrument called the ‘HU adapter' for testing safety-relevant driver assistance systems such as ABS or ESP. At 5.3 million periodic technical inspections, the traditional vehicle inspection business continued to perform at a stable rate in the German market, while in the Turkish market TÜV SÜD actually recorded a significant increase. TÜVTURK, TÜV SÜD’s affiliated company in Turkey, carried out around seven million periodic technical vehicle inspections, a 15 per cent plus compared to the previous year.
Germany’s first TÜV organisation: successfully acting on behalf of society for almost 150 years
Shortly after 1 pm on 28 January 1865, a steam boiler exploded in the Aktienbrauerei, a Mannheim brewery. The accident rocked the city, claiming one life and injuring four. Caused by insufficient water levels, excessive pressure and poor maintenance, it jolted local steam boiler operators into establishing an organisation aimed at increasing the safety of technical plants and systems. The “Association for the Inspection and Insurance of Steam Boilers, domiciled in Mannheim”, the predecessor to today’s TÜV SÜD, was founded in 1866.
Chairman of the Board of Management Dr Axel Stepken underlined, “The establishment of the Inspection and Insurance Association in 1866 marked the birth of the concept of technical safety. Since then, our company’s mission has remained unchanged: TÜV SÜD is dedicated to making technologies safe, reliable and sustainable. By doing so, TÜV SÜD makes technologies ultimately acceptable for people and for our society. Our activities ensure that people can trust in technology – and that customers can trust in their suppliers, even though they may be thousands of kilometres apart.“ In 2016 TÜV SÜD will celebrate its important societal function in a fitting manner in Germany and around the globe.