TÜV NORD GROUP Annual reports
Our current Annual Report and the Reports from previous years can be downloaded here. The Annual Report contains the key figures regarding the business development of TÜV NORD GROUP and articles from the individual business units.
Annual report 2011
Billion euro barrier breached – TÜV NORD GROUP achieves highest turnover since its formation
TÜV NORD GROUP achieved record turnover in 2011, breaching the billion barrier for the first time with its worldwide technical services. Through an increase of 11.1 per cent compared with the previous year, turnover grew to 1.025 billion euros (2010: 922.6 million euros). This means that within five years, turnover has leapt by around 40 per cent. The pre-tax operating results (EBIT) climbed by 18.3 per cent in 2011 to 43.4 million euros (2010: 36.7 million euros). The operating margin, measured in terms of the EBIT, rose from 4.0 (2010) to 4.2 per cent. Never has the Group employed so many people as in 2011.
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Annual report 2011
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Letter from the CEO - Annual Report 2011
Dr. Guido Rettig, Chairman of the Board of Management of TÜV NORD GROUP
Ladies and Gentlemen, Clients and Partners,
TÜV NORD Group had yet another successful year in 2011. The business year ended with a record turnover, the Group further strengthened its market position and also held to its clear strategic course. With growth of 11.1 per cent, turnover climbed to 1,025.1 million euros. This means that TÜV NORD Group has breached the billion euro barrier for the first time. The earnings before interest and tax (EBIT) have risen by 18.3 % to 43.4 million euros. The operating margin, measured in terms of the EBIT, amounted to 4.2 %, after 4.0 % in the previous year. Our clients in more than 70 countries perceive TÜV NORD Group as one of the leading technical service providers in the world. The figures from last year emphasise this role.
The business dynamic has achieved the level that it enjoyed before the global economic and financial crisis. Without doubt, in the last business year our organisation benefited from the recovery in the world economy and the strong upswing in Germany, which only weakened in the last quarter of 2011. Our core areas of activity, concerned with inspection of power plants, industrial installations and materials, showed further growth. Booming sectors such as the automotive industry have also had a favourable effect on our business.
On the other hand, we have to think about the discussions surrounding the high levels of debt in some EU Member States. As I have already mentioned, we were not able to foresee some of these developments. In particular, two events had a negative effect on the Group results. Firstly, despite the so-called skills shortage, which is forecast to become yet more acute in future years, public funding for training and further training was drastically cut in 2011. These cuts were completely unexpected and placed training and further training institutions throughout Germany in a difficult position through no fault of their own. The restructuring of the company has been supported with considerable investment from the Group’s own funds. Today we are able to say that TÜV NORD Bildung again has real opportunities in the markets of the future. And we are also motivated by the fact that we want to open up new ways forward for those who wish to undergo training. To this is added the recognition that the strength of companies is increasingly dependent on a well-trained workforce. Within the training area, we work hard on developing learning opportunities for future technologies, and we will work on a more international basis in future.
One other dramatic event had a very powerful effect on us in 2011: the earthquake and tsunami catastrophe in Japan. Following on from the impression left by the events in Fukushima, German policymakers very rapidly disconnected eight nuclear power plants from the network, and within a few weeks, the decision to undertake staged withdrawal from nuclear energy by 2022 – supported by a consensus throughout society – was taken. We in turn reacted decisively and implemented the necessary restructuring within the Group. Turnover and profits in this sector have fallen, but we intend to remain a reliable partner for the nuclear sector in future. Nevertheless, many TÜV NORD engineers are now devoting themselves to new tasks within the Group, for example in railway technology or in the area of renewable energies.
Everyone is talking about the energy revolution. Companies of the TÜV NORD Group have already been working in this area for many years, and in 2011 we considerably expanded our activities. The vast majority of wind turbines can most usefully be sited where the wind is strong, and the northern part of Germany is one of our most important regions in this regard. Along the North Sea and Baltic coast, but also inland, our services are much in demand by manufacturers and wind farm operators. And we were also able to defend our leading position in the inspection of biogas plant in 2011. In this area, we offer intensive support to those facing the challenges involved in the conversion, storage and transportation of energy, and also the expansion of the network and the management of the smart grids of the future. With the certification of management systems, we provide companies with effective support in the efficient use of resources, thereby making a contribution to business sustainability. And with the opening of our solar charging station, the eSTATION in Hanover, we have also set a visible marker for the linking of electromobility and renewable energies.
Exactly one year ago, I wrote here that we want to set new trends, and I think we have kept our word. With the acquisition of the Alter Technology Group with top locations in Spain, France and Italy in 2011, we established our Aerospace business unit, which has made us unique within the technical inspection sector. Alter Technology TÜV NORD (ATN) is one of the leading companies in the world when it comes to the selection, procurement, inspection, certification and modification of highly reliable electronic components for satellites. ATN is involved in spectacular projects such as the ATV automated transfer vehicle, the further development of the Meteosat weather satellites and the European satellite navigation system Galileo.
In 2011 we started to refocus our International business unit. Our aim is to offer and develop as many of our services as possible on a worldwide basis. In order to achieve this, we will continue to adapt our group structures to global markets and will link international locations more strongly with our various business units. We are sure that this will provide new impetus for the ongoing international development in the Group, enabling us to grow both organically from within and by means of targeted acquisitions. And so we are looking forward: despite subdued economic prospects throughout the world, and despite current risks – above all for the countries of the Eurozone – we are expecting positive development for the Group as a whole this year. The foundation for this is the extremely solid financial base from which we work. We will continue to pursue our expansion strategy through organic growth, and also through targeted acquisitions at home and abroad.
We are convinced that growth and our ability to compete on world markets result to a large extent from our willingness to think and act in an innovative way. In total, 44 million euros were invested in innovation and new and further development in 2011. For example, we have made a targeted investment in the new Aerospace Division, in new technologies in our food laboratories, in the mobility sector, in engineering and also in new exploration methods. We are linking the many different competences in our business units even more closely and we are creating internal and external synergies. Our experts are supporting more and more ideas, developments and products of our clients. We are in the top group in our sector when it comes to innovation skills.
On behalf of the entire Board of Management, I would like to thank our more than 14,000-strong global workforce for the work they have done during the past year. With their experience, technical competence, commitment, enthusiasm and curiosity and willingness to follow new paths, they have all contributed greatly to the success of our enterprise. We would also like to thank the staff representatives for their work within the Group.
And last but by no means least, we would like to thank our business partners and our clients. As an independent technical service provider, we are concerned with high quality, safety, cost-effectiveness and sustainability, and we are looking forward to working with our stakeholders going forward into the future. We are living in exciting times, in a world of constantly changing markets, new developments and changing ways of seeing people, technology and the environment. With the companies in its six business units, TÜV NORD Group is playing a constructive role in these changes. The articles in this report for 2011 tell their own story, and I hope that
you enjoy reading them.
Dr Guido Rettig
Chairman of the Board of Management of TÜV NORD GROUP
Key figures of TÜV NORD Group at a glance
|EBDIT (before non-operating items)||76.3||61.8|
|Net financial position||11.4||29.4|
Breakdown of revenue in 2011 by business unit (%)
Breakdown of revenue in 2011 by region (figures in € million)