- Turnover reaches an all-time high of 4.1 billion euros and an increase of 8% compared to 2022
- Adjusted EBITDA increased by 7.8% and Adjusted EBIT increased by 12.8%
- Strategy 2025 continues to advance: The business is expected to continue to grow based on a strong core business and a focus on future mobility and mobility, cybersecurity, sustainability and artificial intelligence
STUTTGART, Germany, April 28, 2024 /PRNewswire/ -- DEKRA Group has had a brilliant year in 2023. Global turnover increased significantly, exceeding expectations to reach an all-time high of 4.1 billion euros (up 8% from 3.8 billion euros in 2022), showing strong growth compared to its peers. At the same time, the Group's earnings increased significantly with adjusted EBITDA of EUR 455.5 million (up 7.8 percent on 2022) and adjusted EBIT of EUR 255.3 million (up 12.8 percent on 2022).
In 2024, DEKRA will take full advantage of its first-mover advantage in emerging technologies and new regulatory standards. With the continuous promotion of the "DEKRA Group 2025 Strategy", the group's performance will maintain stable growth in the future. By 2025, the company's 100th anniversary, DEKRA aims to be the preferred TIC partner for cutting-edge technologies such as the future of mobility and mobility, cybersecurity, sustainability and artificial intelligence (AI).
Speaking at the annual press conference, Stan Zurkiewicz, CEO of DEKRA Group, said: "DEKRA has had a very solid performance in 2023, despite the macroeconomic and geopolitical environment. The Group's six global regions and all service divisions have made significant contributions to our strong performance momentum and record highs. DEKRA's strong core business and first-mover advantage in emerging technologies give us confidence in both revenue and profit growth and the achievement of our strategic objectives." "
Regionally, DEKRA Americas (up 27 percent) and Central and Eastern Europe & the Middle East (up 13 percent) enjoyed the highest growth rates in 2023. In terms of turnover, the GSA region (Germany, Switzerland, Austria) has the highest turnover at 2.6 billion euros.
From a business area perspective, vehicle-related services are the backbone of DEKRA's revenue. With 31.6 million vehicle inspections per year, DEKRA reaffirms its position as a global market leader in vehicle inspection.
In 2023, DEKRA's adjusted EBIT margin increased slightly by 0.2 percentage points to 6.2%, despite higher operating costs due to inflation. The shareholders' equity ratio remained at a very high level of 39.3% (41% in 2022).
The "DEKRA Group Strategy 2025" has achieved a major breakthrough and success in 2023. Over the past year, the company has further invested in services related to strategic areas, including the future of mobility and mobility, cybersecurity, sustainability, and AI. "DEKRA's investment in emerging technologies is at an all-time high of 143.5 million euros," explains Wolfgang Linsenmaier, CFO of DEKRA. In addition, DEKRA has increased the company's profitability by optimizing its organizational structure. We have also further expanded the size of our staff. "By the end of 2023, DEKRA had around 49,000 experts in around 60 countries around the world.
Stan Zurkiewicz added: "Our investment provides a solid foundation for the successful launch of new services in the emerging technology sector. In 2024, DEKRA will invest in further expanding our service portfolio. "
2024 optimistic outlookDue to the macro environment, DEKRA expects global growth to slow down in 2024. However, the company got off to a good start in the 2024 fiscal year, with a turnover of more than €1 billion in the first quarter, up 2.5% compared to the first quarter of 2023. Based on the current good momentum of the core business and the gains of strategic acquisitions, DEKRA expects the upward trend in turnover and profit.
DEKRA plans to enhance its profitability by developing a state-of-the-art service portfolio and applying digitalization and artificial intelligence in internal processes and customer solutions. Over the next five years, DEKRA plans to achieve a profit margin of 8 to 9 percent.
Strategic Growth Areas: To In 2025, revenue from transportation and mobility will triple in the futureIn 2023, DEKRA has achieved a lot in strategic growth areas.
In the field of future mobility and mobility, DEKRA has successfully launched a series of new services. For the EV aftermarket, DEKRA offers advanced EV battery testing services to provide highly accurate and rapid testing of EV battery remaining life and performance. The testing service has now covered 12 European countries and more than 100 models, including Tesla, and is expected to increase significantly.
The areas of autonomous driving and connectivity are strategic priorities for DEKRA. DEKRA is able to provide highly complex autonomous driving and connected testing scenarios, using digital twin technology to combine real-world scenarios with digitalization for advanced driver assistance systems and autonomous driving functions. DEKRA's test site in Kletwitz, Germany, is being built into the world's largest and most comprehensive independent test site for autonomous driving and connectivity, and is continuously being upgraded. In the field of connectivity, DEKRA has long been forward-looking, with the test site in Malaga, Spain, playing an important role.
By 2025, DEKRA expects its future mobility and mobility business to grow by around 200% compared to 2022, which will strengthen its position as a global leader in automotive inspection, testing and certification. The future mobility market is expected to reach 18 billion euros by 2025.
"Automotive safety has been our mission since our inception. As technological evolution accelerates and artificial intelligence plays an increasingly central role in new vehicles, DEKRA is adapting and expanding our offerings," says Zurkiewicz.
Cybersecurity & Artificial Intelligence: Innovative Services UpgradedOver the past seven years, DEKRA has successfully built a cyber security business and has a strong global presence in Asia, Europe and the Americas. Our clients include leading technology companies such as Amazon, Apple, Google, BYD, BMW, and Continental. In the past year, DEKRA has doubled the number of employees in this area, tripled its revenue, and achieved double-digit profit margins.
Zurkiewicz explains: "Cyber attacks are getting worse day by day. The German digital association BITKOM estimates that cybersecurity issues cost up to 206 billion euros a year in Germany. The customer chooses DEKRA because we identify security vulnerabilities at an early stage of product development and define reliable test scenarios. "
DEKRA can provide cyber security certification services for drones, combining wireless and networking technologies to ensure the safety of drone operation. DEKRA offers a unique security and reliability certification service for digital car keys and has been recognized by more than 330 industry partners, including BMW, Toyota, Ford, Apple and Samsung. In this field, DEKRA has four accredited laboratories around the world, with a global presence and leading technological capabilities, focusing on continuous improvement and innovation to meet evolving cybersecurity challenges.
With the rapid adoption of artificial intelligence, cybersecurity measures will need to be further strengthened in the future. As a result, DEKRA is the first to launch AI consulting and testing services in 2023, focusing on high-risk AI applications in products that are subject to EU safety regulations, such as aircraft, automobiles, medical devices, etc.
In order to effectively guarantee the safe operation of artificial intelligence, DEKRA offers a comprehensive range of services to help customers effectively comply with EU regulations. In a pilot project for Migros Bank and Gowago, Switzerland's largest online car rental companies, DEKRA and its partner LatticeFlow successfully assessed data quality, model robustness, and ensured compliance with upcoming EU regulations, thus guaranteeing the accuracy and reliability of the AI model.
Based on its excellent technical accumulation and expertise in the field of cybersecurity and artificial intelligence, DEKRA plans to increase its revenue from artificial intelligence fivefold and more than double its revenue from cybersecurity by 2025.
Sustainability Services: 40% of the Group's revenue by 2025In 2023, sustainability continues to highlight its importance as a core strategy. DEKRA is committed to promoting sustainable practices and has launched more than 500 sustainability-related services, which represent one-third of the company's overall service portfolio. The company's sustainability solutions are not limited to environmental, social and governance (ESG) areas, but also cover a wide range of key topics such as circular economy, product sustainability, as well as decarbonization and energy transition.
As an important part of green energy, hydrogen energy is becoming increasingly important. "Today, DEKRA is one of the few TIC institutes that can offer a comprehensive range of hydrogen testing services," Zurkiewicz said, "and we expect to be one of the first green hydrogen testing and certification bodies to be recognized by the European Commission." "
With the increasing complexity of regulatory frameworks, such as the Corporate Sustainability Due Diligence Directive, DEKRA is actively assisting companies to better respond to these regulations and develop corresponding ESG strategies.
By 2025, DEKRA expects its sustainability-related businesses to account for 40% of the Group's revenue.
CDP B Rating DEKRA is committed to sustainabilityDEKRA maintains a high commitment to sustainability and transparency in the company's own activities. As a result, the company made another disclosure through the CDP (Carbon Disclosure Project) in 2023. "DEKRA's CDP B rating confirms our commitment to sustainability. CDP plays a vital role in promoting transparency and accountability in environmental management and has a strong reputation in the market. In the future, we will take stricter and more detailed measures to encourage stronger actions to reduce emissions," said Linsenmaier.
DEKRA is committed to helping customers around the world achieve their sustainability goals, and its own outstanding performance in the field of sustainability has been continuously awarded a platinum rating by EcoVadis, ranking among the top 1% of sustainable companies.