Press Archive

Dussmann Group

Dussmann Group in 2006 Exceeds Record Turnover of Previous Year

10/23/2007 – DUSSMANN AG & Co. KGaA (Dussmann Group), Berlin, ended the business year with a growth in sales from 1,238 million Euros in 2005 to a total of 1,308 million Euros in 2006.
 

1.   Dussmann Group Worldwide: Business Year 2006

DUSSMANN AG & Co. KGaA (Dussmann Group), Berlin, ended the business year with a growth in sales from 1,238 million Euros in 2005 to a total of 1,308 million Euros in 2006.

This is an increase of 70 million Euros, or 5.7 percent compared with the previous year.

The successful business year means that in 2006 the Dussmann Group once again maintained its position as the leading international facility management company. This highly positive development continued in the months of January through April 2007.

1.1 The EBITDA

The EBITDA (Earnings Before Interests, Taxes, Depreciation and Amortisation)
for the business year 2006 was a good 6 percent. This corresponds to a growth of 14 percent compared with the previous year.

"As owner, something that is especially close to my heart is that my company achieves organic growth by its own efforts. That is exactly what we have succeeded in doing over the last few years. Because of that, as a globally active service provider, we have an outstanding position in the market. The turnover figures in 2006 and the trend in 2007 demonstrate that we are, and were, solely concerned with the needs of our customers, rather than busying ourselves with acquisitions" said Peter Dussmann, the owner and sole shareholder of the Dussmann Group, commenting on the successful conclusion to the business year 2006 at the annual press conference in Berlin.
"Thanks to the commitment of all our employees across the globe, I am happy to be able to announce today that we have once again exceeded the record turnover achieved in 2005" he added.

1.2 Investments
In 2006, total investments were 26.4 million Euros, as opposed to 45.8 million Euros in 2005. This amounts to a reduction in the investment volume of 42 percent compared with the previous year. The investments which were made in 2005 accrued due to the renovation and new construction of Kursana facilities and the setting up of an industrial laundry service in Vietnam, investments which no longer accrued in 2006.
Amongst other things, in 2006 the Dussmann Group invested in extending its business activities, for example in setting up industrial laundry services in Vietnam and Luxembourg, founding a joint-venture company with the Chinese state shipping company COSCO, concluding new contracts for services, for example with the ISS DOME in Düsseldorf, and renovating and constructing Kursana facilities. In addition, we also invested in new products, especially in the catering industry, such as the new nutrition line Triwell and in catering for children and schools.

1.3 Employees, Status: 05/01/2007

The number of employees in the Dussmann Group worldwide fell by 2,944, from 52,171 employees in 2005 to 49,227 in 2006.

While the number of employees in Germany rose by 530 to 24,072, the number abroad decreased by 3,474. This resulted from the sale of the subsidiary in the USA.

Altogether, 5,500 employees are employed by the Dussmann Group in the region of Berlin/Brandenburg.
"Due to the restrictive application of the antidiscrimination law, company liability and "workers' compensation", I felt impelled to sell our American subsidiary. Despite the sale, no jobs were lost since the company's business activities were continued in part through a management buyout and partly by an American company.

2. The Dussmann Group in Germany - Growth Continues

The Dussmann Group, with its core business of facility management services and services for seniors, was able to increase its turnover in Germany by 10.9 percent in 2006, or 81 million Euros, to a total of 826 million Euros. In 2005, the turnover was 745 million Euros.

2.1 Dussmann Service - Comprehensive Facility Management Services
As a provider of integrated facility management services, Dussmann Service supplies all such services from one source: technical services, catering, security and reception services, cleaning services, commercial management and energy management. The customer can concentrate on his core business while Dussmann Service takes care of the rest - with more than 70 individual services and comprehensive service packages.

Each type of building has its own special requirements. That is why Dussmann Service does not provide "off the rack" services, but instead develops individual solutions to suit the specific problems of the customer's company. Against a background of over four decades of experience with customers from the sectors of business and industry, as well as from the social services and care sectors, Dussmann Service understands the processes taking place in the customer's company. Whether it be the 'path' taken by a patient in hospital, or a manufacturing process in an industrial company, Dussmann Service develops supportive and innovative services to ensure that all operations run smoothly.

An increasing number of large national and international companies are outsourcing total or complete packages in a centrally coordinated purchasing process. The bundling of services, and the professional and conceptual support that these processes provide, is therefore something that is gaining in importance.

Dussmann Service stands out from the competition as the service provider which performs the highest proportion of services itself, and also on account of its international orientation.

Pathbreaking reference projects, such as the complex service company Charité Facility Management (CFM), which deals with all non-medical services for the largest university clinic in Europe, the Charité, the Fridericus service company which works together with the Stiftung Preußische Schlösser und Gärten Berlin-Brandenburg (SPSG), and the facility management services we provide for Infineon, right across Europe, all go to show that Dussmann Service is at the cutting edge. Other well-known clients such as the Deutsche Bundestag, BayWa, S-Bahn Berlin GmbH, Opel AG, Vodaphone and EDEKA have all placed their trust in the efficiency of our group.

"In 2006, and in the first months of this year, many customers such as Rolls Royce, Germany, opted for Dussmann Service. I am especially pleased that existing customers have augmented their contracts with us to include additional services. This shows just how satisfied our customers are with the quality of our services. My company philosophy, developed over a period of 44 years, has always been to consider customer relations as long-standing partnerships, from which both parties should profit", explained Peter Dussmann.
Dussmann Service is responsible for providing complete integrated facility management services for our new customer Rolls Royce, Germany at its sites in Dahlewitz, near Berlin and in Oberusel, near Frankfurt. The five year contract covers the operation, servicing and maintenance of all technical equipment, commercial cleaning, security services, catering for around 2,500 employees and sundry supplementary services.
Other clients such as BMW, Pilkington, AXA, E-Plus, N3, the German State Department, RWE Power AG and the Düsseldorf Congress (ISS DOME) decided to conclude contracts with Dussmann Service in 2006.

2.2 Kursana - Services for Seniors
The Dussmann subsidiary Kursana is the leading private provider of services for seniors. From the middle of 2007, Kursana will care for and look after the everyday needs of around 11,200 seniors in 85 centers in Germany, Austria, Switzerland, Italy and Estonia. Throughout Europe, the turnover of the division rose by 8.5 percent, from 200 million Euros in 2005 to 217 million Euros in 2006.

In 2006, and in the first few months of this year, new homes for seniors opened in Lappersdorf (Bavaria), Potsdam (Brandenburg), Merseburg (Saxony-Anhalt), Lingen (Lower Saxony) and Donzdorf (Baden-Württem-berg). Another home in Leinfelden-Echterdingen (Baden-Württemberg) will open its doors in July 2007. In addition, care centers are in the process of being built in Barsinghausen (Lower Saxony), Kaiserslautern (Rhineland-Palatinate), Vaihingen (Baden-Württemberg) and Bruchköbel (Hessen). This year, work will also begin on the construction of Kursana homes in Hamburg-Billstedt, as well as in Buchholz/Nordheide and Aurich (both in Lower Saxony).

On average, each house has 75 employees who care for and attend to the needs of the inhabitants. "In the next few years, Kursana plans to open at least five new homes every business year; as a consequence, its growth rate is the highest of any private provider of services for seniors. As a result of this expansion, 400 new jobs will be created this year", said Peter Dussmann, supporting Kursana's strategy.

2.3 Dussmann the KulturKaufhaus - Cultural Variety in the Heart of Berlin
Dussmann the KulturKaufhaus recorded sales of 33 million Euros, an increase of 6.5 percent, which means that the store has now grown for the ninth year in succession.
By enlarging the sales area to 6,700 square meters and expanding the sheet music shop, Dussmann now offers more variety than ever before. It is now Europe's largest store of its kind. Its current range contains around 220,000 books, 150,000 music CDs, 16,000 DVDs in addition to software, stationery articles and 70,000 copies of sheet music.

Since shop opening times were liberalized in Berlin at the end of November 2006, it has strengthened its unique position as the store with the longest opening hours by taking full advantage of the new laws: it is now open Monday to Saturday from 10am to midnight. On the Sundays when shops are allowed to open, it is open for business from 1pm to 8pm.

"Since the law governing the hours of trading was abolished, our long opening hours have been a complete success and have far exceeded my expectations. We invite you to go shopping throughout the night twice a month in July and August. From October, the opening hours will be extended to 2am on weekdays. In December, we will again be open for business all the way through from 10am on Friday to midnight on Saturday" says Peter Dussmann.

3. Strong International Markets

The turnover of the Dussmann Group abroad was 482 million Euros in the business year 2006 and thus fell by 2.2 percent compared with the previous year's turnover of 493 million Euros.
"Although the turnover in most countries, especially in Vietnam, Lithuania, Belgium, Luxembourg and Austria rose, the sale of the subsidiary in the USA (at the end of 2005) led to a small loss in the total turnover of foreign business in 2006, compared with the previous year" explained Peter Dussmann.

The three foreign companies with the highest turnover, as in 2005, are:
Position    Land            Turnover 2006 in million €
1              Italy                  206.2

2              Austria              67.3
3              Luxembourg      62.7

3.1 Austria, Romania, Lithuania - Growth Markets in Europe

Austria
Founded in 1968, the Austrian company is the oldest of the Dussmann Group's subsidiaries. With a turnover of 67.3 million Euros in 2006 and around 6,500 employees, it is one of the three foreign subsidiaries with the largest turnover. Well-known customers such as Infineon, Voest Alpine, ÖBB and the Bank of Austria have contributed to its success over the years.

Romania
Since January 2007, the Dussmann Group has provided round the clock catering services for around 6000 employees of the Romanian oil and natural gas concern Petrom.

Lithuania
In 2006, the Dussmann group undertook to cater for the 2000 patients and employees of the largest hospital in the country, situated in the capital, Vilnius. For many years now, the company has been the largest caterer and facility services provider in Lithuania.

3.2 China - Ongoing Development Continues

As in the previous year, a growth in turnover was achieved in China in 2006. The business year 2007 has developed equally positively. We now have over 2,700 employees in the 8 branch offices in China, including Hong Kong, representing the entire spectrum of Dussmann services. In the last few months, an important contract with the world's second largest shipping and shipbuilding company COSCO has led to a surge in growth in China. Further contracts, for example, for Pepsi Cola in Chongqing, the British consulate general in Hong Kong, as well as General Electric, Philips and the HSBC bank in Shanghai, contributed significantly to the increase.

3.3 Vietnam - First Industrial Laundry Service Gets Under Way

Vietnam developed in a similarly positive way to China. In November 2006, the Dussmann Group opened the country's first industrial laundry service operating to European standards of hygiene in Ho-Chi-Minh City. It supplies all the important hospitals in and around Ho-Chi-Minh City with 20 tons of laundry on a daily basis. The investment volume for the 14,000 square meter plant came to five and a half million Euros, the largest foreign investment the Dussmann Group has made up to now. 65 additional jobs were created.
"Having already invested in the construction of a central kitchen in Cho Ray hospital in Vietnam, this industrial laundry service now marks our second contribution to the development of health care in Vietnam" says Peter Dussmann.

The industrial laundry service will enable the Vietnamese subsidiary of the Dussmann Group, which employs around 1,400 people and is the largest caterer in the country, providing 55,000 meals every day, to strengthen its portfolio in the growth market of Vietnam. In the next few years, we expect a double figure increase in sales.

4. Outlook for the Dussmann Group

"The turnover in 2006 and in the first months of the current business year reflect that the Dussmann Group is well positioned, both nationally and internationally. It shows that it is not only worth backing new contracts, but it also pays to cultivate and strengthen existing customer relations. This potential is the driver of a significant proportion of the group's worldwide increase in turnover.

Our integrated facility management services are establishing themselves more and more every year and we see outstanding chances for growth here in Germany. Whenever sales and earnings increase in the German economy as a whole, which fortunately is the case at the moment, then service providers also do very well.

It goes without saying that we will continue to press ahead with the expansion of our activities abroad this year. In this respect, we will focus on developing our subsidiary in the United Arab Emirates. Whole new districts are being built there. We want to have a much stronger presence in this region and provide these new buildings with our services. The demand for services to German quality standards is enormous.
"In 2007, worldwide, we will be setting our sights on increasing our turnover still further and creating new jobs", said Peter Dussmann, summarizing the balance sheet for 2006 and the outlook for 2007.

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