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Annual results 2020: Giesecke+Devrient emerges strong after pandemic year

31/03/2021 Munich Giesecke+Devrient

In a challenging 2020, the international technology group Giesecke+Devrient (G+D) achieved sales of EUR 2.3 billion, almost on a par with the previous year. Through effective cost management and increasing margins in its business, G+D was able to boost its operating result by 13 percent to EUR 153 million. A 6 percent growth in incoming orders to a total of EUR 2.4 billion demonstrates the growing demand for G+D's safety-related products and solutions.

G+D, like many other companies, faced considerable challenges in the past financial year due to the Covid-19 pandemic. Through effective crisis management with a focus on the health of employees and continuity in business processes, G+D mastered the effects of the pandemic well. The company has also continued to advance key strategic initiatives in its business portfolio around security in the core areas of payment, connectivity, identities and digital infrastructures.

Among other things, G+D invests in the innovation of a digital currency for central banks, thus addressing a topic crucial to the future of payment transactions at an early stage. Around 80 percent of the world's central banks are working on the introduction of a digital currency or Central Bank Digital Currency (CBDC). G+D is already carrying out the first pilot projects in this area with central banks.

In a challenging economic environment, G+D succeeded in keeping the effects of Covid-19 low. As a result, group revenue in the 2020 financial year reached EUR 2.31 billion, only 5% below the previous year's level. The continuing travel restrictions had a particular impact - especially with regard to the handling of major projects and the service business.

The company's operating result also showed positive developments. At EUR 153 million, the result from operating activities was 13% higher than in the previous year. Earnings before interest and taxes (EBIT) remained at the high level of the previous year at EUR 131 million. The net profit for the year amounted to EUR 43 million.

G+D was able to increase its order intake by 6% to EUR 2.4 billion. This increase is mainly due to the fact that G+D's business portfolio is system-relevant in many areas and is in strong demand worldwide. At EUR 1.6 billion, the order backlog in 2020 is also above the previous year's high level of EUR 1.5 billion.

Above all, G+D continues to invest at a high level in the development of new digital business fields and the expansion of its business portfolio. In 2020, the technology group acquired stakes in the Swiss software company Netcetera and the crypto-asset company Metaco. Overall, the investment volume of EUR 131 million matches that of the previous year.

For 2021, G+D plans to closely match the revenue and earnings level of the reporting year. With a solid order backlog G+D is starting the current financial year in a very good position. However, the forecast for 2021 remains subject to uncertainty due to the ongoing global pandemic.

"Even in light of crisis, we have proved to be a reliable partner for our customers. In a challenging financial year 2020, we managed the impact of the global Corona pandemic on our business very well while keeping our sights on further growth," emphasises Ralf Wintergerst, Chairman of the Management Board and Group CEO of Giesecke+Devrient. "Last year, we set the right development targets for G+D and invested heavily in our digital portfolio. In particular, we were able to successfully further expand the future fields of digital payment and encryption technology."

The digital version of the Annual Report 2020 can be found at https://www.gi-de-report.com/

About Giesecke+Devrient

Giesecke+Devrient (G+D) is a global security technology group headquartered in Munich. As partner to organisations with highest demands, G+D engineers trust and secures essential values with its solutions. The company's innovative technology protects physical and digital payments, the connectivity of people and machines, the identity of people and objects, as well as digital infrastructures and confidential data.

G+D was founded in 1852. In the fiscal year 2020, the company generated a turnover of 2.31 billion euros with around 11,500 employees. G+D is represented by 74 subsidiaries and joint ventures in 32 countries. Further information: www.gi-de.com.

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