Giesecke+Devrient Continues to Grow

In fiscal year 2016, Giesecke+Devrient (G+D) posted the highest revenue in the company’s history. At approximately €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 €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 €52.5 million in the fiscal year ending Dec. 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.
 
“In the 2016 fiscal year, Giesecke+Devrient improved on the good results of the previous year and achieved sustained growth in a competitive environment,” said Ralf Wintergerst, who took over as chairman of the Management Board of Giesecke+Devrient on Nov. 1, 2016. “Our innovative technologies and services enabled us to find the right solutions to meet the growing security needs of our customers across the globe in 2016.”
 
During the last fiscal year, G+D laid the foundations for a new Group structure, which has been in place internally since the beginning of 2017 and will become legally effective in the third quarter of 2017. The G+D Group is being divided into four subgroups, which will be legally independent companies with greater entrepreneurial freedom and responsibility than in the past.
 
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% – and listed company secunet AG, where G+D is the majority shareholder with a stake of around 79%.
 
At nearly €928 million, the Banknote business unit again made the largest contribution to Group revenue. The business unit finished the fiscal year with the highest order backlog in its history. The Mobile Security business unit achieved a revenue of approximately €863 million. The business environment is currently characterized by fierce price competition
 
Veridos GmbH, a joint venture between G+D and the Federal Printing Office (Bundesdruckerei), achieved growth of nearly 33% in 2016. This was largely due to a substantial increase in its ID card business. Veridos contributed around €183 million to G+D’s total revenue. secunet AG was able to boost its revenue by 28% to approximately €115 million in 2016. The sales growth and record earnings posted by the company were driven by increasing demand for high-quality 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.
 
“G+D has the potential to achieve sustained growth in all its business segments,” said Wintergerst. “We specifically intend to expand our global market position as a leading provider of security technologies.”