Giesecke & Devrient sales grow 4% in 2016
In 2016, global security technology group Giesecke & Devrient (G&D) posted the highest revenue in the company’s history. At around EUR 2.1 billion, the figure was almost 4% above the prior year. The technology group’s adjusted earnings before interest and taxes (EBIT) increased by around 23% to EUR 125 million, while the EBIT margin grew by 0.9% to 6%. Despite increased tax expense following the company’s reorganization, G&D achieved a strongly positive net income of EUR 52.5 million in the fiscal year ending December 31, 2016, roughly equivalent to the result for the previous year. All four business units – Banknote, Mobile Security, Veridos, and Secunet – made a positive contribution to Group earnings before interest and taxes.
At around EUR 928 million, the Banknote business unit again made the largest contribution to Group revenue. Revenue increases were achieved in banknote security solutions, plant engineering, and automated cash cycle systems in particular. The business unit finished the fiscal year with the highest order backlog in its history.
The Mobile Security business unit achieved a revenue of around EUR 863 million. The business environment is currently characterized by fierce price competition. Revenue increased in India, China, and Indonesia during the 2016 fiscal year. Although EMV migration (migration to payment cards equipped with chip technology) in the USA and the SIM insertion business in Asia remained below the previous year’s level, revenue from software and solutions, local public transportation products, and deliveries to public-sector clients was significantly increased.
Veridos, a joint venture between G&D and the Federal Printing Office (Bundesdruckerei), achieved growth of around 33% in 2016. This was largely due to a substantial increase in its ID card business. Veridos contributed around EUR 183 million to G&D’s total revenue.
Listed company Secunet was able to boost its revenue by 28% to around EUR 115 million in 2016. The sales growth and record earnings posted by the company were driven by increasing demand for high-quality, trusted IT security products and services.
In May 2017, G&D will launch a unit intended to act as a catalyst for new digital technologies and business models within the company. As a legally independent subsidiary, “G&D advance52” will help the subgroups to expand their digital business in the core areas of payment, identity, and connectivity. The aim is to develop new digital products to market readiness via an accelerated process, working closely with customers, and then hand them over to the subsidiaries for marketing.
G&D is optimistic regarding the current fiscal year and expects its revenue and operating result to be similar to the figures achieved in 2016. Continuing strong sales are expected in the subgroup Currency Technology (previously: Banknote), with levels expected to remain the same as in the previous year. G&D expects solid revenue development in the Veridos and Secunet subgroups. Thanks to its strong market positioning, Mobile Security has growth opportunities in its solutions business. Especially in the area of cyber security G&D has strong potential to unlock new markets and expand its portfolio with security solutions for connected machines and cars. All subgroups are expected to once again make a positive contribution to earnings during the current fiscal year.
Also the company announced that Stefan Auerbach, Head of the Mobile Security business unit and Member of the Management Board of Giesecke&Devrient, is leaving the Group. Carsten Ahrens is taking over the management of Mobile Security, with immediate effect.