2017 Annual Report – All Business Sectors Record Positive Earnings
2017 was another good year for Giesecke+Devrient (G+D). The group of companies has further strengthened its position in many important markets, and all business sectors have achieved positive earnings. Overall, G+D slightly exceeded its planned figures, achieving EUR 2.14 billion in Group sales and an EBIT of EUR 130 million.
This is the highest figure for sales in the company’s 166-year history, and is almost 2% higher year-on-year. All four business sectors – G+D Currency Technology, G+D Mobile Security, Veridos, and secunet – made a positive contribution to the Group earnings before interest and taxes (EBIT). Overall, the adjusted EBIT improved by around four percent, while the EBIT margin increased by 0.1 percentage points to 6.1 percent.
Due to the successfully completed conversion, the Group has been divided into four divisions since 2017. The Banknote and Mobile Security business units have been renamed as part of the new G+D structure. Banknote has become Giesecke+Devrient Currency Technology GmbH, while Mobile Security now operates as Giesecke+Devrient Mobile Security GmbH. The other subgroups are Veridos GmbH – in which G+D holds a majority stake of 60 percent – and listed company secunet AG, where G+D is the majority shareholder with a stake of around 79 percent.
G+D’s Development at a Glance
Business development fueled by establishment of “G+D Ventures”
Growth potential in solutions for secure identification and authentication, as well as digital security
In 2018 G+D expects further growth in sales as well as an operating result approaching the high level of 2017
2017 in the Individual Business sectors
G+D Currency Technology
G+D Currency Technology GmbH far exceeded expectations in the 2017 fiscal year, and passed the €1 billion revenue mark for the first time in the company’s history. Revenue was €1017 million, up by 10% compared with the previous year. Key drivers of this increase were banknote processing business and the smart automation of the cash cycle.
secunet AG, a quoted company, adjusted its forecasts upward several times over the course of the record year of 2017, increasing its sales by 38% to more than €158 million. Alongside the sharp rise in sales in the SINA product family, external consultancy services also contributed strongly to growth.
Veridos GmbH further improved its order quality in 2017, and was able to significantly broaden its customer base. Revenue was €167 million, representing a decrease of 9%. This effect can be attributed to the scheduled run-out of a major project in Iraq, from which Veridos had benefited hugely in the previous year.
G+D Mobile Security
G+D Mobile Security GmbH was able to increase market share in the areas of electronic and digital payment, as well as in SIM card business. Slowing in the market, particularly in the USA, caused a slight fall in the sales trend of 6% to €812 million. Mobile Security saw great momentum in the product areas of eSIM management and mobile payment.
New engine for business development
In April, G+D also established the “G+D Ventures” proprietary company builder, based in Munich. The unit develops internal and external innovations for the establishment of independent companies, and also provides startups with access to the G+D network of experts and their vast knowledge. “We are constantly growing our portfolio. With the newly established ‘G+D Ventures’, we are investing in some highly promising internal and external ideas and startups,” explained Ralf Wintergerst.
Annual Report 2017
Find out all key information about fiscal year 2017 at Giesecke+Devrient.