News from the Dussmann Group

Dussmann Group

Sustained Growth in Earnings Worldwide

05/11/2010 – 2009 shows an increase in sales and earnings // more than 1,000 additional jobs created // services „made by Dussmann“ make an impression at the EXPO 2010 in Shanghai
 

The Dussmann Group’s financial year 2009 worldwide

The Dussmann Group, Berlin concluded the business year 2009 with growth in sales of 34 million Euros totaling 1,440 million Euros. In 2008, worldwide sales were 1,406 million Euros. This corresponds with an increase of 2.4 percent, generated exclusively through organic growth.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for 2009 rose to 6.1 percent.

Worldwide sales for the division Dussmann Service rose by one percent, or eleven million Euros from 1,115 million Euros in 2008 to 1,126 million Euros in 2009. Total sales for Kursana grew by 8.6 percent or 22 million Euros, from 257 million Euros in 2008 to 279 million Euros in 2009.

In the Dussmann Group core activities of Facility Management and Nursing & Care for the elderly, total German sales figures rose in 2009 by 1.6 Percent or 14 million Euros to a total of 893 million Euros. In 2008, the figure was 879 million Euros.

Outside Germany, the group achieved total sales of 547 million Euros last year, an increase of 3.8 percent or 20 million Euros in comparison to the previous year’s sales of 527 million Euros.

Worldwide, the number of Dussmann Group employees has risen from 52,706 in 2008 by 1,043 to 53.749 (status 31.3.2010).

“Again, we have achieved organic growth in both main business sectors and proportionally, earnings have grown even faster. My prediction of 2009, that flexible service providers like the Dussmann Group would see great opportunities worldwide, was correct, for example the privatization of public services. We have even exceeded my target of creating 1,000 additional jobs“ stated Thomas Greiner, CEO of the Dussmann Group at the annual press conference on May 4, 2010 in Berlin. The German FM industry now contributes more to gross domestic product with 5.03 percent than traditional sectors such as construction or the engineering and automobile industries. The Dussmann Group has consistently extended its range of integrated facility management across the globe, individual services interlinked to form many different distinctive service packages.

“Nursing and care for the elderly, services provided by our second largest division, Kursana, will be an increasingly important issue over the coming years” said Greiner. “During the past two years, our sales have risen by a good 100 million Euros. This was only possible because we invested in talented personnel early on. Incidentally, no other German TOP500 company has as many women in key positions at all levels as we do – right up to our CFO. We have strengthened the purchasing, IT and compliance departments. We have also benefited from the cooperation of trust that has been established with members of the supervisory board: Catherine von Fürstenberg-Dussmann as chairperson together with Wolfgang Clement, Dr. Tessen von Heydebreck and Dr. Giuseppe Vita” continued Greiner.

Dussmann Service

The division Dussmann Service is a global Facility Management provider and offers clients facility services from one source: technical services, catering, security, reception, fire services, cleaning, commercial management and energy management. The client list reads like the who`s who of international companies such as Adam Opel AG, Infineon Technologies AG, Bosch and Oracle. Clients also include public institutions such as Trenitalia, ÖBB, German air-traffic control and the German parliament.

“Over the past 15 months, we have played an active role in effecting structural change on behalf of the client. For example, we have set up a number of production kitchens, releasing clients from the need to invest in new catering facilities and concentrating regional catering activities. New own-brands of sauces, soups, meat and vegetable dishes have been developed. They are all free of preservatives and other additives which require declaration. We have introduced online meal plans for 45 catering clients, a web-based tool with an integrated survey to gauge diner satisfaction. We have also established 13 additional support offices to ensure client proximity. This is especially important during economically difficult periods. We currently operate 18 German branch offices and 29 support offices” said Thomas Greiner. Developments in 2009 reemphasized the importance that clients attach to the service packages offered by Dussmann Service. “The high proportion - 95 percent - of services carried out by our own personal and our strong international presence in 24 countries are decisive factors in persuading long-standing clients to extend existing contracts and international companies from all sectors to choose Dussmann as a service partner for the first time. How many competitors can offer so many different services from one source for both large and small companies across the globe? Our worldwide presence puts us in an excellent position to compete in cross-border tenders, which are currently on the increase” according to Greiner.

In 2009 and during the initial months of the current year, the Dussmann Group has already acquired new business. Many of the new contracts are with companies in sectors for which sector-specific concepts have been developed and successfully applied across the globe.

Privatization of public services

The world exhibition EXPO 2010 in Shanghai opened only a few days ago. In the German pavilion, named “balancity”, Dussmann Service introduced service quality “made by Dussmann” to visitors from all over the globe. 200 members of staff are responsible for the pavilion’s security and cleaning. 70 million guests are expected including German Chancellor Angela Merkel and President, Horst Köhler.

The Italian Dussmann subsidiary, one of the largest private service providers to the public sector, started up several major new contracts last year. The Polizia di Stato was already a Dussmann Service catering client and sections of the Carabinieri followed their example. In Calabria and Sicily, Dussmann operates 28 kitchens which cater to 3,000 diners from this police unit each day.

As one of the army caterers, a further contract was signed in 2009 with the Italian defense ministry: On 13 properties in the region of Apulia, Dussmann began cleaning operations for the navy including the historic “Arsenal” in Taranto, which houses important navy institutions.

In the summer of 2009, Dussmann Italy won a cleaning contract with the Italian state railway, Trenitalia, in the regions of  Campania and Molise, in Naples and for the fast trains “Freccia Rossa”. Recently, the region of Piemont was added to the contract. Both the interiors and exteriors of the trains are cleaned and graffiti is removed. This contract expands continuously.

Beginning in 2010, Dussmann Service is responsible for catering at five locations for Stadtwerke in Leipzig. Company employees can enjoy breakfast, lunch, snacks and conference services. Each day, the branch office in Leipzig serves meals to around 450 diners.

Another new client is the German Aerospace Center (DLR). At the site in Oberpfaffenhofen, Dussmann Service carries out cleaning services. The DLR is already acquainted with Dussmann Service in Stuttgart. There, the service provider cleans the 24,000 square meters of the research center on the university campus and has also been providing security services since 2007.

In January 2010, the FM provider started catering for the staff restaurant and cafeteria as well as snack vending administration at the Federal Marine and Hydrographic Agency (BSH) in Hamburg. The restaurant is open, not only to BSH personnel; external guests are also welcomed. Staff from the neighboring German Weather Service and the surrounding agencies take advantage of the service. All in all, Dussmann Service serves around 400 diners in the restaurant which is located opposite the landing bridge and the old Elbe tunnel.

At the Federal Post & Telecommunications Authority, the Dussmann Service branch office in Stuttgart carries out technical services. These include servicing, operation and maintenance of the technical systems which serve the building’s 30,000 square meters.

Services for retail stores and shopping centers

An increasing number of chain stores have contracted services for their outlets to Dussmann Service – an operation requiring first-class logistical organization. The Gries Deco Company GmbH, known primarily for its retail chain, Depot, has entrusted the FM provider with technical services at its 150 stores and Shop-in-Shops. Depot stores are located across Germany, Austria and Switzerland.

Apollo Optik has contracted maintenance cleaning and glass cleaning at 50 of its nationwide stores to Dussmann Service.

In April 2010, Dussmann Austria started up cleaning services for 135 branches of the OÖ Sparkasse and at other properties belonging to the company. More than 190 members of staff provide these services.

In Hungary, Dussmann Service is responsible for technical services at 70 branches of the Volksbank.

In many countries including Germany, Poland, the United Arab Emirates and Latvia, Dussmann Service provides FM services to shopping centers.

Industry and clean-room cleaning

Dussmann Service Austria has gained an especially innovative client in the waste recycling center in Zwentendorf. The EVN recycling plant in lower Austria processes 500,000 tons of waste each year using up-to-date environmentally compatible technology and is one of the most modern plants in Europe. Dussmann Service employees carry out cleaning services including industrial cleaning.

On Infineon’s European production sites, Dussmann Service provides a number of FM-services including clean-room cleaning.

Multifunction arenas

Dussmann Service has gained many years of experience in arena catering at the Düsseldorf ISS DOME and the Philipshalle. When the Arena Ludwigsburg was opened in 2009, Dussmann was named in-house caterer at the multifunctional arena which accommodates up to 7,200 people in seats and standing room. The Dussmann team operates four kiosks, the 12 boxes  and the business club.

Hotels and residential complexes

In China, a new security contract with the Shanghai International Finance Center (SIFC) was started up. The Dussmann team which ensures the safety of the complex with two office towers, the Grand Shopping Mall and 200 luxury apartments in the center of the metropolis, comprises more than 400 people. Due to its success with the IFC, Dussmann Service is now recognized as the foremost security service provider in Shanghai.

Numerous first-class hotels have contracted Dussmann Service. At the 500-bed hotel Kempinski in Beijing, China, a round-the clock catering service for the 1,000 hotel staff offering Chinese and Western cuisine is operated.

Other Dussmann clients in this segment include the Austrian 4-star Mercure Grand Hotel Biedermeier and the Mercure Wien Europaplatz in Vienna, the Marriott in Linz and hotels in the Czech republic and in Germany, for example, the Ritz-Carlton in Wolfsburg.

Airports

In the United Arab Emirates, Dussmann Service operates cleaning services and waste management at the Abu Dhabi and Al Ain airports. 500 staff work on the contract. Last year, the team introduced CAFM-Software to administrate service requests from the airlines. Together with services provided at Zweibrücken and Graz airport this adds up to a wide range of experience in Airport Services.

Correctional facilities

In 2009, the state authority for property and construction in Rhineland-Pfalz contracted Dussmann Service with the Facility Management of both old and new buildings at the correctional facility in Wittlich. At the facility’s newly constructed hospital, the consortium Dussmann/Hermed are responsible for medical technology and cleaning services.

In Hungary, Dussmann already provides catering to prisoners in a number of correctional facilities.

Security for museums

Dussmann Service provides security services to numerous cultural organizations, for example to the Prussian Palaces and Gardens Foundation and the Prussian Cultural Heritage Foundation. Attendants and cash desk staff at the museums on the Berlin museum island, at the Moritzburg foundation and, since May 2009, the security staff at the memorial to German partition on the former border Helmstedt/Marienborn are all Dussmann Service personnel.

Production kitchens

Dussmann Service Austria has a new contract with the Diocese of Linz and since March of this year, operates the production kitchen in Pichling. The kitchen has a capacity of up to 5,000 portions a day. Meals are freshly produced each day including “Cook&Chill” and “Cook&Freeze” products. This production kitchen supplies facilities belonging to the Diocese of Linz as well as GE Healthcare in Zipf. Another client regularly orders VIP menus for 700 guests.

Across Germany, Dussmann Service has opened several new production kitchens, for example in Leipzig and in the nitrogen plant at Piesteritz. In order to meet the growing demands of children’s and school catering in the region, a new production kitchen in Waiblingen with a capacity of 7,000 meals a day went in to operation.

In Turin, Italy, a further major production kitchen is under construction. Dussmann Service in Italy currently produces 29 million meals each year.

Children’s and school catering

Dussmann Service already operates these services in many cities and municipalities across the world. In Germany alone, 40,000 meals a day are served and catering services are also operated in Italy, Vietnam, and in Luxemburg. Last year, there were many new clients, for example, ten open, full-day schools in Düsseldorf, in Rüsselsheim, the State School Pforta in Saxony-Anhalt and numerous facilities in the state of Brandenburg.

Parents can order and pay for their children’s meals using Dussmann Service online meal plans system.

Clinics

Dussmann Service is an experienced service partner of the health care sector in many different countries. One example is the contract for patient and staff catering with the accident hospital in Berlin, starting in 2009.

The executive and supervisory boards of the Charité University Medicine in Berlin have resolved that the existing partnership with the consortium VDH, comprising of VAMED Deutschland, the Dussmann Group and Hellmann Worldwide Logistics should be extended until the end of 2012. The Charité CFM Facility Management GmbH was founded in 2005.

The private Medicover Group has entrusted Dussmann Poland with services at its newly opened hospital in Warsaw. The Medicover clinic is the largest private hospital in the city and it offers the whole range of medical services with very high quality levels. Dussmann Service contributes to this exemplary project through the provision of cleaning and security services.

Dussmann Italy has won contracts for clinic hygiene and maintenance cleaning in several Sicilian clinics. Patients and staff at the Hôpital du Kirchberg in Luxemburg have been enjoying Dussmann catering services for several years already.

In Bad Homburg, Dussmann commenced staff catering for Amadeus Germany GmbH. The contract is for all staff catering, the operation of a bistro and for conference and vending services.

Unilever in Saigon, Vietnam; Samsung Electronics Italia; the Italian Finmeccanica Group/Ansaldo Energia; these are all new staff catering clients. At Ansaldo alone, 660,000 meals at four locations are served each year.

Dussmann Service has taken on cleaning services for Bayer Real Estate GmbH in 56 properties at Bayer’s head office, Leverkusen and in Dormagen. This contract, deploys result-oriented cleaning methods: Instead of a rigid specifications, services are carried out according to perceptible cleaning needs.
Starting in January 2010, Dussmann Service Austria operates catering, cleaning, reception and security services at Eybl International which produces high-tech textiles for vehicle interiors.

Kursana

Around 12,600 seniors are cared for by 5,800 members of staff at Kursana Domizile and Residenz facilities. With currently 109 facilities in Germany, Austria, Switzerland, Estonia and Italy, Kursana is Germany’s largest private provider of services for the elderly and a market leader in the quality of nursing and care services and of accommodation and equipment.

The sales of this division grew by 8.6 Percent, from 257 million Euros in 2008, to 279 million Euros in 2009.

In 2009, Kursana opened six new Domizile facilities in Markkleeberg (Saxony), Gütersloh (North-Rhine Westphalia), Seelze (Lower Saxony), Seligenstadt (Hesse), Mömbris (Bavaria) and Hamburg-Billstedt. In addition to full-time nursing and care, Kursana in Gütersloh offers a residential unit for patients suffering from dementia and residential groups.

2010 kicks off with the opening of Kursana Domizil in Schneeberg (Saxony). Facilities in Dreieich (Hesse), Dachau (Bavaria), Griesheim (Hesse) and Grevenbroich (North-Rhine Westphalia) will follow.

In all of the facilities, the proportion of single rooms is over 80 percent. The 18 square meter single rooms exceed the minimum requirement of twelve square meters substantially. Each room has its own barrier-free bathroom with at least four square meters. All facilities operate at above average occupancy.

“Between now and the middle of this century, the present figure of 2.3 million people requiring nursing care will more than double to 4.8 million. The demand for nursing and care in Germany is met only when each and every patient can be provided with a single room in a quality care facility. Kursana’s growth during 2009 is a reflection of demographic trends in most of Europe. One of the pre-conditions of preparing for these developments is well-trained, motivated, professional personnel. This is why we are emphasizing recruitment, training and qualification of care personnel during the coming year” explained Thomas Greiner. Six new first-class Kursana facilities have been opened and the company has also seen developments in terms of quality assurance. In addition to the usual regular quality audits by ten internal quality managers, certification was also carried out by TÜV Rhineland and regular checks were made by the medical service of the health insurance MDK and the home supervisory authorities. Kursana facilities were awarded an average grade of 1.6 according to the MDK grading system from 1 to 6. “I am happy to report that our Domizil in Grimmen, for example, received 1.0, the best grade in the entire state of Mecklenburg-West-Pomerania. Quality assu-rance and quality development remain a consistent daily challenge” attests Greiner.

Dussmann das KulturKaufhaus

Over a retail area of more than 7,000 square meters, Dussmann das KulturKaufhaus offers a unique range of international products. In addition to the world’s largest classic and opera department, the range includes jazz, films, a music shop and naturally, a huge selection of books with emphasis on fiction, English language literature and specialist reference books.

During the past year, this division of the group generated sales of 35 million Euros. With an additional one million Euros over the previous year, the multi-media department store concluded 2009 with very good results.

Last year, a total of around three million people took advantage of the store’s vast selection of products and the professional knowledge of staff. The customer-oriented opening times – Monday to Saturday from 10 a.m. to midnight – are a central factor of success: A substantial proportion of the day’s turnover takes place after 8 p.m. During peak periods, sales personnel or the newly created call center process around 1,200 orders per work day.

The extensive 2009 event schedule listing around 100 individual events was a magnet that attracted approximately 10,000 people to the store; German and international artists gave book readings, information events, interviews, short concerts and signings at Dussmann house. “On average, we invite Berlin’s residents and visitors to a free event in Friedrichstrasse every three days” informs Thomas Greiner.

Perspectives

“2009 was a year of very good news for the Dussmann Group. Up to the present, 2010 has also gone very well. During the first quarter of this year, we have boosted sales by 8.7 percent over the same period of the previous year and earnings have grown by an even higher margin. A company which succeeds in growing profitably through its own efforts has a positive future and the group’s future is concentrated on world markets. We have been a global player with German roots for several years now and offer integrated Facility Management according to the principal ‘global business, local service’ ” explained Greiner. The success of this model is confirmed by frequent imitation by competitors.

“I am convinced that three major issues will play a prominent role in the future of the Dussmann Group. The health care sector offers many opportunities, for example in hospital logistics and central sterilization. Globally, privatization of public services will gain importance, particularly in countries with high state debt. The mega-cities which we currently see evolving in Asia and in the Arab world will not be easy to administrate and will need an experienced service partner such as Dussmann. Today already, the dramatic increase in demand for nursing and care is an immensely important issue for Kursana. This will lead to a rising need for qualified care personnel, not only in Germany. I look forward to these challenges and am confident that we are well prepared to sustain growth and development worldwide and to make a contribution towards shaping the future” concluded CEO Thomas Greiner optimistically.

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The Dussmann Group in Numbers

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Thomas Greiner, Chief Executive Officer

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The Dussmann security team in front of the German pavillion at the EXPO 2010 in Shanghai

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Dussmann also provides cleaning services for operating theaters

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