News from the Dussmann Group

Dussmann Group

Dussmann Defies the Crisis

05/07/2009 – Financial Year 2008 Successful // Annual Earnings Increase by 18 Percent // Organic Growth of 75 million Euros // Dussmann Service Wins New Contracts in All Sectors Worldwide // Kursana With Nine New Facilities for Seniors
 

The Financial Year 2008 for the Dussmann Group Worldwide

The Dussmann Group, Berlin concluded the financial year 2008 with an increase in sales of 75 million Euros to a total of 1,406 million Euros. In the previous year, worldwide sales totaled 1,331 million Euros. This is an increase of 5.6 percent, achieved exclusively through organic growth. Sales increased by 47 million or 3.7 percent in the previous year.

Turnover of the company division Dussmann Service rose by 5 percent or 53 million Euros, from 1,062 million Euros in 2007 to 1,115 million Euros in 2008. Kursana increased sales by 9.4 percent or 22 million Euros, from 235 million Euros in 2007 to 257 million Euros in 2008.

With core activities in the sectors of Facility Management and seniors’ care, the Dussmann Group succeeded in increasing sales in Germany by 3 percent or 26 million Euros to a total of 879 million Euros in 2008. In 2007, turnover was 853 million Euros.

The group’s sales outside Germany totaled 527 million Euros over the past year showing an increase of 10.3 percent or 49 million Euros over the sales of the previous year of 478 million Euros.

Annual earnings increased by 18 percent over the previous year.

Worldwide, the number of Dussmann Group employees rose from 51,136 in 2007 by 1,570 to 52,706 in 2008.

“We set ourselves an ambitious target, aiming to increase sales by at least four percent. We have achieved even better results. The success of the financial year 2008 consolidates our position as Germany’s number one Facility Management provider. No other company in this sector has grown as strongly and as profitably through its own efforts as Dussmann Service. In 2007, our company division, Kursana, became Germany’s largest private provider of nursing and care to seniors and we have been able to build on this position in 2008“ says Thomas Greiner, CEO of the Dussmann Group.

Dussmann Service

The company division Dussmann Service, a worldwide Facility Management provider, offers all facility services from one source: technical services, catering, security und reception, fire services, cleaning, commercial management and energy management.

“Naturally, it is important to our clients that we are able offer more than 70 different services and complex service packages. Our sound international presence and our ability to carry out 95 percent of our services directly, contribute to the decision of large international companies in the pharmaceutical, automobile, telecommunications and high-tech sectors to contract service quality “made by Dussmann”. We speak the language of medium-sized companies just as fluently. Who, among our competitors can offer so many different services from one source for large and for small companies?" says Thomas Greiner.

In 2008 and in the first months of the current year, the Dussmann Group was able to win several interesting new contracts.

In the UAE, Dussmann has started cleaning and waste management services for the airports in Abu Dhabi and Al Ain. Around 450 employees carry out cleaning services over more than 260,000 square meters, using German cleaning technology and products. With a projected 20 million flight passengers per annum, three terminals and passenger handling for the Airbus A380, the Abu Dhabi airport is one of the most important airports in the Middle East. This, in addition to services already being provided at airports in Zweibrücken, Graz, Luxembourg and Brussels, shows how Dussmann Service has strengthened its activities in Airport Services.

Not only in Germany but also in Vietnam, Italy and Eastern Europe, a wide spectrum of services is provided to medical institutions. The joint service company with Charité, Europe’s biggest university clinic, which handles all non-medical services, concluded its fourth successful year. Dussmann Service is an experienced service partner for the health care sector worldwide. One illustration is the new contract with the Accident Hospital (Unfallkrankenhaus) Berlin (ukb) which is financed by the accident insurance organizations (Berufsgenossenschaften). At the beginning of 2009, Dussmann Service took on catering operations for patients and staff including additional services for private patients and introduced the Dussmann online meal plan. At the ukb, the Dussmann Team produces a total of around 750 meals each day.

An increasing number of clients in the public sector are outsourcing to private service providers. The Prussian Palaces and Gardens Foundation (SPSG) und die Prussian Cultural Heritage Foundation (SPK) are existing clients. They are joined by the Grün Berlin Park und Garten GmbH which runs the Britzer Gardens, “Gardens of the World” in Marzahn Leisure Park and the Nature Park ”Schöneberger Südgelände”. Dussmann Service guards the extensive grounds of the leisure parks and manages cash points.

Since March 2008, Dussmann Service UK Ltd has provided guard services to the U.S Embassy in London, as well as in the US Consulate in Edinburgh. Dussmann Service UK Ltd working in partnership with the U.S. Embassy - London and Consulate - Edinburgh to provide security through Dussmann Officers controlling the safe access and egress for visitors, vehicles and goods.

Dussmann Service operates catering for schools and child care facilities in many cities and for municipal authorities worldwide. Long established activities in Germany, Italy and Vietnam have now been extended to include 15 schools in Luxembourg.

Existing staff catering clients, including the German parliament (Deutscher Bundestag), are joined by many new clients; for example, Dussmann Service caters to the customers of BAUR Versand GmbH & Co. and runs the customer restaurants and bistro in Kaufwelt BAUR. Around 3,000 BAUR employees who work in administration, logistics and call centers are served by the Dussmann catering team on several sites.

:: www.baur.de

Dussmann Service took on the management of catering and goods purchasing at the two Nestlé Deutschland AG plants in Hamburg and Mainz. Around 1,100 Nestlé employees work at each of these plants.

Japanese food in the middle of China: This is an example of the consistent client orientation which characterizes Dussmann worldwide. In Guangzhou, China, Dussmann Service is responsible for catering to the 1,600 employees of the Japanese car manufacturer Honda. Since October 2008, they have been able to choose from the Chinese and Japanese dishes on the meal plan including Sushi.

Among the many shopping centers for which Dussmann Service works worldwide including in the Near East, is the Waterfront in Bremen where operations were started up in October 2008. This is an innovative shopping and leisure center with around 80 shops, diverse culinary outlets and a multiplex cinema. Dussmann Service has been entrusted with complete Facility Management including responsibility for technical systems and management of the 4,000 parking lots. Dussmann Service was already involved in the conversion phase providing comprehensive construction support services.

Kursana

Around 12,600 seniors are cared for by the 5,800 employees of Kursana Residenz and Kursana Domizil. There are presently 108 facilities in Germany, Austria, Switzer-land, Estonia and Italy, making Kursana the largest private provider of services for the elderly.

The sales of this company division rose by 9.4 percent, from 235 million in 2007, to 257 million Euros in 2008.

“We are going to see continuous growth in demand for high-quality facilities and excellent nursing care over the coming years and decades. This applies to the number and quality of facilities. The market is far from saturated and lively compe-tition among providers is good for the client. Only quality will be successful and this is why, as the first large private provider, we are currently seeking certification of all of our facilities by the TÜV Rhineland. This will ensure that the high standards of nursing and care at Kursana are maintained in the long-term and externally audited. Kursana will grow in the coming years; we plan to open six new facilities in Germany with a total of 600 to 900 beds each year" says Thomas Greiner.

During the past year and in the initial weeks of 2009, nine further Kursana Domizil facilities were opened in Germany: in Bruchköbel (Hesse), Vaihingen an der Enz (Baden-Württemberg), Buchholz/Nordheide (Lower Saxony), Aurich (Lower Saxony), Hösbach (Bavaria), Oststeinbek (Schleswig-Holstein), Seligenstadt (Hesse), Mömbris (Bavaria) und Markkleeberg (Saxony). In all of these facilities, over 80 percent of accommodation consists of single rooms and each room has a barrier-free bathroom. All new facilities report above-average occupancy.

Further Kursana Domizil facilities will be opened in Seelze (Lower Saxony), Hamburg-Billstedt, Gütersloh (North-Rhine-Westphalia), Schneeberg (Saxony), Seevetal-Meckelfeld (Lower Saxony), Dreieich (Hesse), Dachau (Bavaria), Griesheim (Hesse) and Grevenbroich (North-Rhine-Westphalia).

Dussmann das KulturKaufhaus

Across a retail area of over 7,000 square meters, Dussmann das KulturKaufhaus offers an extensive range of products, unique in Germany. In addition to the world’s largest classical and opera music department, the range of jazz and film music and music supplies, the store’s huge product range centers on a wide selection of books in many different departments with emphasis on fiction, English-language books and reference books.

The smallest company division of the group achieved sales of 34 million Euros during the financial year.

“There is good reason for Berliners to say: ‘let’s meet at Dussmann’,” according to Thomas Greiner. In the first 3 months of this year, sales were even higher than for the same period in the previous year. “I think it’s wonderful that, despite the dramatic economic news reports that we hear every day, our clients continue to value good literature and music. It’s an important part of the quality of life for me too" says Thomas Greiner.

Corporate Social Responsibility

“It is the duty of every successful company to return something to society. This is why the group’s social commitment is so important to me” said Peter Dussmann in 2007.

“This is another important concern that I share with the owner, because it is also important to me. Our commitment in Berlin includes support of the Carl Philipp Emanuel Bach music-oriented high school in addition to participation in the refurbish-ment of the opera house on Unter den Linden“ says Thomas Greiner.

New Members of the Dussmann Supervisory Board

Catherine von Fürstenberg-Dussmann (58), wife of company founder, Peter Dussmann, has taken on the chair of the Supervisory Board of Dussmann Verwaltungs AG as from 29th April 2009.

Heinz Dürr (76), who was Chairman up to this point, stepped down, passing duties to the sole shareholder’s wife. Simultaneously, Dürr resigned membership of the Supervisory Boards of Dussmann Verwaltungs AG and Dussmann AG & Co. KGaA.

Former head of German railways, Dürr took on the duties at the request of Catherine von Fürstenberg-Dussmann following the onset of her husband’s serious illness. “I am very, very grateful to Heinz Dürr for his intense commitment and his great dedication to the company during the difficult time at the beginning of my husband’s illness” she said. “His support was decisive.”
In addition to Catherine von Fürstenberg-Dussmann, members of the worldwide service provider’s Supervisory Board are Wolfgang Clement and Dr. Tessen von Heydebreck. The Schering Board Chairman of many years, Dr. Guiseppe Vita, was elected new Supervisory Board member.

Perspectives

“During 2008 and the initial months of the current year, we have proved our capabilities. 2009 has gotten off to a varied and positive start. We have used potential to the best of our ability and remained true to our principles by growing organically and profitably in FM operations and substantially improving results. This lends stability and we will maintain this course. I expect that in addition to the consistent, planned growth of Kursana, we will see particular growth on the Arabian peninsula. We are very well established in two global growth markets and I am optimistic that we will be able to provide many jobs in Germany again this year. We are confident of our abilities and it is important to cultivate constant development of this know-how. In March alone, we won new contracts worth around 50 million Euros. The new contract with the Italian state police has a total value of 22 million Euros and the contract is for two years starting in April 2009. Dussmann Service is responsible for catering throughout the entire Italian state police force with over 2 million meals from breakfast and lunch to evening meals. In each of the 69 kitchens, food is freshly prepared.

This year, we want sales and earnings to grow as they have done in 2008. The figures for the first four months of 2009 confirm that we are right on course. This is something we can be really proud of at a time when good news in the German economy has become a rarity” summarized Thomas Greiner.

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Turnover of Dussmann Group

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Dussmann Group offers all services around the building from one hand.

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In the area of school catering there were many new contracts in the last year.

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Thomas Greiner, CEO of Dussmann Group