TUV Rheinland continues healthy growth in Fiscal year 2017, posts revenues of €1.972 billion

The international testing service provider, TUV Rheinland, continued its ongoing healthy growth in the fiscal year 2017. TUV Rheinland’s revenues increased in 2017 by €54 million or 2.8% to the current figure of €1.972 billion. Earnings before interest and tax (EBIT) at €130.6 million also posted the best figure in the company’s 145-year history. The EBIT margin also inched up 0.2 percentage points to 6.6%. At €91.3 million, investments were at the level recorded in 2016. The average number of employees at TUV Rheinland over the course of 2017, expressed as full-time equivalents, increased to 19,924. It has since moved past the 20,000 mark.

“2017 was a year of important moves. For three years, we have set the accent on improving profitability. For us this is more important than merely increasing revenues. As a result, we can make considerable investments in important future markets and implement digitalization,” said Dr. Michael Fubi, CEO of TUV Rheinland AG. This relates not only to the IT infrastructure and software, but also specifically the development of new services for the digital economy as well as investments in inspection technologies for networked “smart” devices and products. Dr. Fubi: “We are not yet completely satisfied with the result achieved so far – especially with a view to some global competitors – but we are on the right track. In a challenging industry environment we continued the successful growth trend of recent years.”

TUV Rheinland’s equity increased by almost €13 million from €346 million to €359 million in the 2017 fiscal year. The equity ratio improved from 18.4% to 20.1%. Cash flow from operating activities in 2017 was stable at almost the level of the previous year. It was €161.8 million in the past fiscal year after €163 million in 2016.

As in the previous years, TUV Rheinland made considerable investments in its future viability again in 2017. At €91 million, investments were at the level recorded in 2016. The focal points were various software and digitalization projects, the expansion of inspection capacity and developing new testing laboratories, especially in Asia, and completion of the expansion and energy renovations at our Group headquarters. In April 2017, the renovated high-rise building started being used again.

Around €10 million was invested in new testing labs, particularly for energy efficiency, electromagnetic compatibility and chemical testing. A highlight here was opening the new state-of-the-art laboratory center in Bangalore, India in October 2017 that has 14,000 square meters of space and employs some 300 staff.

Further focus areas for investments included wireless and cyber security. TUV Rheinland currently has eight laboratories for testing radio technologies and wireless standards. Such investments in future-oriented technologies and new testing capacity are needed internationally on the market. Our main investment activities also include the expansion of IT infrastructure at TUV Rheinland itself and the purchase of specialized testing software. The performance of the IT infrastructure was strengthened particularly by means of investments in improved hardware, increased server capacity, and more efficient telecommunications equipment.