News from the Dussmann Group

Dussmann Group

The Dussmann Group Increases Sales for the Fourth Year in a Row in 2007

1. The Financial Year 2007 for the Dussmann Group Worldwide

The Dussmann Group, Berlin, concluded the financial year 2007 with additional sales of 47 million Euros, in total 1,331 million Euros. This is an increase of 3.7 percent over the previous year, achieved exclusively through organic growth.

The success in 2007 consolidates the Dussmann Group’s position as a leading international Facility Management provider. The positive trend is also reflected in the figures for January to April 2008.

1.1 Earnings

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the financial year 2007 were 6 percent. Annual earnings increased by 13 percent.

„In 2007 the group’s international sales showed an increase for the fourth year in a row while annual earnings increased for the third time. In the 45th year of company history, the Dussmann Group has lost none of its innovative drive, developing new fields of activities and achieving successful results“, summarized CEO, Thomas Greiner.

1.2 Investments

In 2007, investments totaled 30.6 million Euros compared to 26.4 million Euros in 2006. The volume of investment has increased by almost 16 percent in comparison to the previous year. Investment in 2007 was concentrated on a number of production kitchens in and outside Germany and included the establishment of an industrial laundry in Luxemburg.

1.3 Employees, Status: 31.12.2007

During 2007, the number of Dussmann Group employees across the globe increased by 1,909, from 49,227 to 51,136 at the end of the year. In 2008, the company will create around 1,000 new jobs in Germany alone. While the number of employees in Germany increased by 583 to 24,655, figures for international subsidiaries increased by 1,326 to 26,481. In the region of Berlin and Brandenburg, the Dussmann Group employs around 5,500 people.

2. The Dussmann Group in Germany – Market Leadership Strengthened

The sales of the Dussmann Group in Germany, whose core business is Facility Management and services for seniors, rose by 3.3 percent or 27 million Euros, to a total of 853 million Euros in 2007. In 2006, sales totaled 826 million Euros.

2.1 Dussmann Service – 70 Facility Services

As a provider of Integrated Facility Management, Dussmann Service provides all facility services from one source: technical services, catering, security, reception, cleaning, commercial management and energy management. The client can concentrate on core business while Dussmann Service takes care of everything else – with more than 70 individual services and comprehensive service packages.

Dussmann Service stands out among its competitors thanks to the high proportion of services provided directly and its wide international presence.
„An increasing number of clients are following the trend towards Integrated Services and benefit from our wide experience in management and processes. Among other things, this is reflected in the complex service company, Charité Facility Management (CFM) which provides all of the non-medical services to the largest University clinic in Europe, the Charité, in the Fridericus Service Company together with the Stiftung Preußische Schlösser und Gärten Berlin-Brandenburg (SPSG – Prussian Palaces and Gardens Foundation, Berlin-Brandenburg) and the Facility Management services provided to Infineon across Europe. In 2007 we won the contract with Rolls-Royce Germany, for the sites in Dahlewitz and Oberursel, another premium technological client for complex Facility Management“ reports Thomas Greiner. Other renowned clients include the German Parliament, Opel, AXA, Hewlett Packard, Dresdner Bank, Gerling and Allianz who all place their trust in the service quality of the Dussmann Group.

„During 2007 and the initial months of the current year, the company was able to win many new contracts “, informed Thomas Greiner. Recent new contracts include:

• University Clinic Greifswald
  A comprehensive new catering contract has been signed with the University Clinic Greifswald. In Autumn 2007 Dussmann Service took on catering for patients, employees and visitors at the clinic which has 778 beds, 46 wards, 21 clinics and policlinics, 19 institutes and further central facilities at various sites across Greifswald. From a Cook&Chill central production kitchen with 1,200 square meters, up to 700 patients are catered to each day. A further 180 meals are produced for employees of the University Clinic who eat in two cafeterias and a shop, which is also open for visitors.

• DFS Deutsche Flugsicherung GmbH (German Air Navigation)
  In April 2008, Dussmann Service started security and cleaning operations for the DFS GmbH at several sites including the airport at Frankfurt/Main. Dussmann Service has run the staff restaurant at the headquarters of DFS in Langen,  for many years.

• IDS Scheer
  In April 2008, Dussmann Service took on responsibility for cleaning services at IDS Scheer headquarters in Saarbrücken and at sites in Munich, Klagenfurt, Freiburg und Hamburg. Dussmann Service has been operating security services at the headquarters of the leading international business process solutions provider since 2006.

• Imoplan/Colosseo Frankfurt
  The real estate management company, Imoplan, has charged Dussmann Service with Facility Management Services for Colosseo, a residential and commercial property in Frankfurt/Main.

• DASA (Deutsche Arbeitsschutzausstellung)
  The DASA (German Occupational Safety and Health Exhibition) in Dortmund is an exciting educational experience with the slogan „man – work – technology”. It welcomes 200,000 visitors each year. Dussmann Service has taken on a number of different services since January 2008: guided tours, security services and the operation of the book shop.

• State Laboratory Brandenburg
  Under a contract which began in February 2008, Dussmann Service provides an unusual range of services to the state laboratory, Brandenburg: In the Sample Testing Center, a pilot project has been set up where, each day, up to10,000 samples from veterinary medicine and soil engineering in Berlin-Brandenburg and Mecklenburg-Vorpommern are collated, catalogued and distributed.

• The City of Jena
  In January 2008, Dussmann Service started the new contract to provide 13 state schools in the city of Jena with midday meals. On average, 1,900 meals are prepared from fresh produce each day in the production kitchen of the catering facilities of the Jencasino in the business park Jena-Göschwitz. Each day for the past 13 years, the Dussmann cooks and service staff at Jencasino have been catering to around 650 diners from the many different companies in the business park.

• N3 - Voith Paper - Aon Jauch & Hübener Holdings GmbH - MDR
  Dussmann Service has started up new staff restaurants for several new clients. For example, Dussmann Service now provides regional cuisine to the almost 400 employees at the Lufthansa Technik/Rolls-Royce Joint Venture N3 Engine Overhaul Services in Arnstadt, Thüringen. Staff restaurants were also opened for Voith Paper, for the insurance broker Aon Jauch & Hübener Holdings GmbH in Hamburg which belongs to the worldwide Aon Group, and at the radio station Mitteldeutschen Rundfunk (MDR) in Halle an der Saale.

“The contract with Rolls-Royce Germany deserves particular emphasis. Dussmann Service has been Rolls-Royce’ German service partner since April 2007, with responsibility for the entire Integrated Facility Management of both Rolls-Royce sites in Dahlewitz near Berlin and Oberursel near Frankfurt/Main. The five-year contract includes operation, maintenance and servicing of all technical systems as well as cleaning, security, catering for over 3,000 employees and other supplementary services“, reported Thomas Greiner.

Other exceptional events during the past year

In Leipzig a new production kitchen, equipped with the latest technology, was opened to supply schools and child care facilities. Each day, a total of 7,500 meals are prepared at three sites in Leipzig. Across Germany, Dussmann Service provides around 30,000 meals each day for schools and child care facilities.
The Dussmann Group’s newly designed website, www.dussmann.com went online, including the subsidiaries. Each month, www.dussmann.com is accessed around 20,000 times. In addition to extensive information about all of the service divisions, the website also includes a catering glossary in German and English, unique worldwide.

2.2 In 2008, Kursana Expands to Become Germany’s Largest Private Provider of Seniors’ Services

The Dussmann company division, Kursana, which was founded in 1985, is currently the leading private provider of seniors’ services. In 2008 Kursana provides care and nursing in 108 facilities in Germany, Austria, Switzerland, Estonia and, most recently, in Italy. Around 12,600 seniors are cared for by 5,730 staff. That makes Kursana the largest private provider of seniors’ services.
Kursana operates 86 facilities in Germany, four in Austria, one in Switzerland and in Estonia and 16 facilities in Italy.
The turnover of this company division rose by 8.3 percent, from 217 million Euros in 2006 to 235 million Euros in 2007.

In 2007 Kursana expanded to Italy. The company established a total of 16 facilities, mainly in the regions of Piemonte, Lombardia and Liguria.

During the past year and in the first weeks of 2008, seven new seniors’ facilities were opened in Germany, in Lingen und Barsinghausen (both in Lower Saxony), Donzdorf, Leinfelden-Echterdingen und Vaihingen an der Enz (all in Baden-Württemberg), Kaiserslautern (Rhineland-Palatinate) and in Bruchköbel (Hesse). Kursana facilities are under construction in Buchholz/Nordheide and Aurich (both in  Lower Saxony), Hösbach (Bavaria) and Oststeinbek (Schleswig-Holstein) which will open by the fall of 2008.

In 2009, Kursana will open facilities in Markkleeberg (Saxony), Gütersloh (North Rhine-Westfalia), Seelze (Lower Saxony), Seligenstadt (Hesse), Mömbris (Bavaria) and Hamburg-Billstedt. All of the recently opened facilities have been newly built and specially designed for the needs of seniors. Over 80 percent of accommodation consists of single rooms and every room has its own barrier-free shower and bath.

Kursana will grow further in the coming years. Each year, five to eight new facilities with 600 to 900 beds are planned. “The company division Kursana is an important part and a supporting pillar of the group. Due to expansion both in and outside Germany, it makes a substantial contribution to the company’s success. Kursana is not only Germany’s largest private provider of seniors’ services but also the only company in this sector which has extensive activities outside Germany “, emphasized Thomas Greiner, on the subject of Kursana’s strategy.

2.3 Dussmann das KulturKaufhaus – More Cultural Highlights

Dussmann das KulturKaufhaus showed an increase in sales of 3 percent to 34 million Euros for the past financial year. This is considerably more than the growth in Berlin retail trade, which increased by one percent in 2007. It is a reflection of the continuing success of the KulturKaufhaus in its tenth year.

The expansion of the sales area to a total of 7,000 square meters means that Dussmann das KulturKaufhaus now offers more variety than ever before. The current range of Europe’s largest department store of this nature includes around 250,000 books, 150,000 music CDs, 16,000 DVDs and audio books, stationary and 70,000 articles of sheet music.

The sphinx of Queen Hatschepsut has been welcoming visitors to the store since November 2007. Built in 1475 B.C. in the Valley of the Kings in Theben, the sphinx is on permanent loan to Dussmann das KulturKaufhaus from the Egyptian Museum Berlin, an exceptional cultural highlight.

Since November 2006, the store has been able to take advantage of the liberalization of the laws on retail trading hours and opens from Monday to Saturday 10 a.m. to midnight. On the ten Sundays when trading is allowed, the store is open from 1 p.m. to 8 p.m.

"In its tenth year, Dussmann das KulturKaufhaus has become an institution - in Berlin and beyond. The wide variety of free cultural events with famous names attracted tens of thousands of visitors to the store in 2007. The company’s central service principle speaks for the Dussmann das KulturKaufhaus concept“, according to Thomas Greiner.

3. Dussmann Service International – Global Service Provider and Worldwide Partner

Dussmann Group sales outside Germany reached 478 million Euros in the past year, an increase of 4.4 percent over the previous year’s sales of 458 million Euros.

The three international subsidiaries with the highest turnover have not changed since 2006: 

• 1. Italy: 210.2 (Sales 2007 in Millions €)
• 2. Austria: 70.4 (Sales 2007 in Millions €)
• 3. Luxembourg: 66.7 (Sales 2007 in Millions €)

3.1 Italy – Strong in All Sectors and Regions

Dussmann Service Italy began a major contract for school catering in Rome. Each year, nearly six million meals, including a high proportion of organic products, are prepared for 36 Schools in central districts of Italy’s capital city.
In 2007, the educational authorities of the Italian region Puglia contracted Dussmann for cleaning services in around 400 schools.
The hospital Le Molinette in Turin (region Piemonte) extended the contract with Dussmann Service for clinic hygiene services. The service provider has now worked for the hospital for 30 years.
New clients of the Italian subsidiary include Oracle with a contract for Facility Management, the avionics company, Galileo Avionica and many companies in the health care sector.

3.2 Estonia – Market Entry into Hospital Catering

In 2007, Dussmann Service Estonia succeeded in entering the hospital catering market. In Mustamä hospital, where the service provider has been carrying out security and cleaning services for many years, around 100 employees are now responsible for patient catering. A central production kitchen delivers meals to sites about 40 kilometers away. Dussmann Service is also commencing catering services in the district hospital Haigla in Tallinn.

3.3 Hungary – PPP Project Started

In Hungarian Tököl, Dussmann-Service has taken on catering for the detention center in the form of a Public-Private Partnership. The service provider already caters to 800 prisoners in two other detention facilities in Hungary.

3.4 Romania and Bulgaria – Extensive Catering Contracts

The Dussmann Group began provision of 24-hour catering services to the approx. 6,000 employees on the three locations of the Rumanian oil and gas producer, Petrom, in January 2007. In the Bulgarian capital, Sofia, Dussmann Service caters to patients at the country’s largest hospital, Alexandrovska Hospital.

3.5 United Arab Emirates

In one of the strongest growth markets for Facility Management, the Dussmann Group has already established three footholds: in the Emirates of Abu Dhabi, Dubai and Ras al-Khaimah. In Abu Dhabi, Dussmann Service started with maintenance cleaning of all surfaces in the Khalidiya Mall, the largest shopping mall in the capital of the United Arab Emirates. The service provider is responsible for Facility Management in the almost 600 villas of Sas al-Nakhl which belong to Abu Dhabi’s leading developer, Sorouh.

The European Business Center (EBC) of the Kleindienst Group in Dubai has contracted comprehensive Facility Management services to Dussmann Service, from technical, security and cleaning services to energy and waste management.

In Great Britain, the British subsidiary of the Dussmann Group won the tender for security services at the US embassy in London and at the consulate in Edinburgh, Scotland. A large new contract for Dussmann’s Chinese subsidiary: as from September 2007 almost 160 Dussmann staff took on security services at the production plant BMW Brilliance Automotive Ltd. in Shenyang in North-East China. The plant produces BMW vehicles for the Chinese market.

4. The Dussmann Group: Perspectives

“I have headed the Dussmann Group as CEO since September 2007. Peter Dussmann has entrusted my fellow board members and myself with a well-positioned enterprise, and we plan to develop and expand all of the company divisions in the coming years “, reports Greiner.

“We will be investing even more in personnel development because we know that to provide highly qualified services, we need well trained, motivated staff. In addition to our activities in the business & industry sector, we will shape the company division, Dussmann Service, as the leading service provider for the health care sector. At the same time, we intend to hone the profile of Kursana and provide services both within and outside our facilities to become a provider of the whole range of seniors’ services“, Thomas Greiner summarized German activities.

„With respect to the international activities of Dussmann Service, we see the fastest growth market in the Near East, where we are developing our presence, among other things, by establishing a new branch office in Qatar. In our existing international subsidiaries, we are concentrating on developing and expanding our current portfolio towards Integrated Facility Management. For the current financial year, my fellow board members and I expect an increase in sales of around four percent and a growth in annual earnings of 20 percent in our core business activities, the growth markets of Integrated Facility Management and seniors’ services“, concluded Thomas Greiner.

5. Summary of Sales for the Dussmann Group

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Summary of Sales for the Dussmann Group