Annual Report 2013

Annual Report
2013
2013
Milestones
January
Dussmann Service celebrates 20 years of catering
for its client, PCK Schwedt.
March
A new Kursana Domizil facility in Kriftel (Hesse) opens.
April
The Dussmann Group acquires all shares in Dresdner
Kühlanlagenbau GmbH (DKA) and expands its technical
services expertize. HypoVereinsbank contracts its FM
to Dussmann Service at around 850 sites in Germany,
starting in April, 2014.
February
The Dussmann Group forms a cooperation with the Spanish
company, Group EULEN, Madrid. They join forces in providing
integrated facility management in 35 countries. The Italian
Dussmann subsidiary wins the contract with the state railway
company, Trenitalia to clean 140 high speed trains.
May
The Dussmann Group celebrates its 50th anniversary with
a gala and publication of its history “50 Jahre Dussmann
Group—50 Ideen für Menschen”.
June
July
Dussmann Service is selected as “best catering company (staff restaurants) 2013” following a survey of
228 decisions makers carried out by the German Institute
of Service Quality (DISQ).
The Austrian Dussmann subsidiary, the oldest outside
Germany, is 45 years old. The Grand Duke Guillaume
and Grand Duchess Stéphanie visit the industrial laundry
operated by Dussmann Service Luxembourg.
August
September
Company founder, Peter Dussmann, dies on September
26, 2013 aged 74 following a long illness. Dussmann Deli
opens at Dussmann House. The first Dussmann Group
Social Day takes place.
November
Kursana Domizil Otzberg (Hesse) opens. Dussmann
Service Italy is awarded the contract for cleaning at
all of the state schools in Tuscany and Apulia. Vegan
dishes are presented in Dussmann staff restaurants.
Kick-off of the music project “Klang und Leben”
at Kursana for residents with dementia.
October
Dussmann Service is named “Caterer of the Year” for the
café-restaurant Ursprung in the center of Berlin. The first
Dussmann Service apprentice event takes place in Berlin.
December
Dussmann Service carries out the first tests with
the cleaning robot butler as part of a research project
by the Fraunhofer Institute for Production Technology
and Automation (IPA).
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Dussmann Group Annual Report 2013
FOREWORD
Annual Report 2013
The executive board of the Dussmann Group from l. to r.:
Dirk Brouwers (CEO), Jörg Braesecke, Pietro Auletta, Dr. Hans-Jürgen Meyer
In the year of its 50th anniversary, the Dussmann Group can again report excellent rates
of growth. With more than 61,000 employees worldwide, our company has generated
total sales of 1.84 billion Euros setting new records in both cases. These successes are
not only the result of company strategy which includes development of sector expertize
and international expansion boosted by the establishment of a dynamic FM cooperation
on a global scale. They are built on the qualities of fairness, responsibility and credibility
established by the company’s founder, Peter Dussmann, from whom we took leave in 2013.
The Dussmann Group focused on new ideas and innovations—for people, by people.
This included extension of our technical services expertise through the integration of
the company, DKA, a new vegan product range in catering, the opening of further child-care
facilities and nursing and care facilities for the elderly as well as a training campaign
to counter the shortage of skilled staff and the start of an employer branding campaign.
The business year 2014 begins optimistically coinciding with the start of a number
of major contracts. These support the ambitious targets set by the Dussmann Group
for the current year and sustain the upwards trend.
The Executive Board of the Dussmann Group
Dirk Brouwers (CEO)
Pietro Auletta
Jörg Braesecke
Dr. Hans-Jürgen Meyer
Dussmann Group Annual Report 2013
3
FINANCIAL YEAR 2013
Significant Sales Increase
During Anniversary Year 2013
Information
Founded in 1963,
the Dussmann Group is
now one of the largest
private multi-service
providers worldwide.
Figures:
Total Sales
1.84 billion Euros
Employees
61,221
Market Presence
20 Countries
For 2013, the Dussmann Group reports an
increase in both sales and employees for
the tenth consecutive year. Worldwide, total
sales of 1.84 billion Euros were generated
which represents an increase of 6.6 percent
or 114 million Euros over the previous year,
2012, which showed total sales of 1.73 billion
Euros. Growth was organic but also due to
the acquisition of an air-conditioning and
refrigeration specialist. The multi-service
provider asserted itself in its core markets,
facility management (FM) and nursing and
care of the elderly. Dussmann Group is one
of the few family enterprises on the FM market which prevails despite market concentration and keen competition. This is why the
three most important elements of company
strategy were reinforced in 2013: the expansion of the service portfolio, intensive
development of sector expertize and further
international orientation.
In May, the company’s 50th anniversary
was celebrated with a gala event and the
publication of the company history “50 Jahre
Dussmann Group—50 Ideen für Menschen”.
Total Group Sales and Consolidated Group Sales
2012
Change
mill. €
%
mill. €
%
mill. €
%
1,729
100.0
1,843
100.0
114
6.6
1,075
62.2
1,165
63.2
90
8.4
654
37.8
678
36.8
24
3.7
1,341
77.6
1,447
78.5
106
7.9
353
20.4
361
19.6
8
2.3
35
2.0
35
1.9
0
0.0
Consolidated Group Sales*
1,443
83.5
1,539
83.5
96
6.7
Service
1,070
74.2
1,159
75.3
89
8.3
338
23.4
344
22.4
6
1.7
KulturKaufhaus
35
2.4
35
2.3
0
0
EBITDA on Consolidated Group Sales
6.1
Total Sales
of which, Germany
of which, abroad
Service
Kursana
KulturKaufhaus
Kursana
* without managed and intercompany sales
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2013
Dussmann Group Annual Report 2013
5.6
Driving Force for Growth:
the German FM Market
All of the company divisions contributed to
the company’s positive results. Services in
Germany showed especially strong growth.
The trend towards outsourcing of secondary
services to specialists continues among
German companies and the Dussmann
model of providing the whole range of facility
services from a single source with a high
level of self-delivery has proved successful.
The Dussmann Group’s robust, crisis-proof
business model represents a major advantage. A significant proportion of the business—
services for the public sector and nursing
and care for the elderly—is largely or wholly
independent of economic developments.
The acquisition of Dresdner Kühlanlagenbau
GmbH (DKA) in April 2013 strengthened the
technical services expertize of the Dussmann
Group. DKA is a refrigeration and air-conditioning specialist which constructs and
installs refrigeration and air-conditioning
systems and provides subsequent services.
In the course of the year, the subsidiary
was integrated into the structures of the
Dussmann Group. This was the Group’s first
German services acquisition since 1999.
Operative results were satisfactory but fell
short of expectations in comparison to 2012.
For 2013, the EBITDA margin on conso­­lidat­­ed group sales was 5.6 percent. Causes
were setbacks at the international subsidiary
in the United Arab Emirates.
New Record:
Over 61,000 Employees Worldwide
The number of employees across the world,
including those in operations managed by
Dussmann Group rose from 60,213 in 2012
by 1,008 to 61,221 (average in 2013).
The Dussmann Group takes its responsibility
towards its workforce seriously. The company
pays fair wages punctually, encourages
mutual respect in day-to-day dealings and
provides good working conditions.
The objectives of human resources strategy
in 2013 included the attraction of experienced
skilled specialists and extending vocational
training activities in terms of quality and of
quantity. A new employer branding campaign has been launched to increase
recognition of the Dussmann Group, in
general and among potential applicants.
Total Sales since 2005
1,843
1,658
1,729
1,567
1,238
1,308
1,331
1,406
1,500 mill. €
1,440
1,000 mill. €
500 mill. €
2005
2006
2007
2008
2009
2010
2011
2012
2013
Dussmann Group Annual Report 2013
5
FINANCIAL YEAR 2013
FM Cooperation Reinforces
International Strategy
With the objective of further extending the
international service portfolio, pending
approval by the antitrust authorities, the
Dussmann Group has formed an alliance
with the Spanish company, Group EULEN,
Madrid, and the British Interserve Plc,
Berkshire. This alliance establishes one of
the largest service networks in the world.
The three companies are leading service
providers in their home markets and are
combining their service ranges to be able
to offer integrated facility management in
nearly 40 countries. In 2013, a total of around
190,000 employees generated annual sales
of over five billion Euros. Companies with
global activities have the opportunity of
organizing their international FM operations
with international quality standards under
a single contract and benefitting from
the combined service know-how of Group
EULEN, Interserve and the Dussmann
Group. The alliance extends to Europe,
Northern and Southern America and Asia
including such important markets as Spain,
Germany, the UK, Italy, the USA, Mexico,
UAE and China. The country clusters of
the two partners ideally complement the
radius of activity of the Dussmann Group.
Dussmann Group
Locations Worldwide
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Austria
Bulgaria
China
Czech Republic
Estonia
Germany
Hong Kong
Hungary
Italy
Latvia
Lithuania
Luxembourg
Poland
Romania
Russia
Saudi Arabia
Slovakia
Switzerland
UAE
Vietnam
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Dussmann Group Annual Report 2013
Dussmann EcoSystem Guarantees
Sustainable Processes
In 2013, the Dussmann Group continued
intensive efforts to ensure the sustainability
of the services it provides to clients. All of
the service divisions deploy concepts based
on the principles of sustainability laid down
by Dussmann EcoSystem: cost-efficiency
and high standards of social responsibility,
cleaning methodology which facilitates
careful use of resources, modern technical
services for energy savings and sustainably
produced foods. The company will also
apply these principles in international
operations.
In 2013, major investment was made to ensure sound IT structures which make proper
use of resources. The Dussmann Group
completed introduction of the software, SAP,
for all business administration services in
the divisions Service Germany, Dussmann
Service Switzerland, Kursana and at
headquarters.
Company Founder
Peter Dussmann Dies
On September 26, 2013 company founder,
Peter Dussmann, died aged 74 following
a long illness. Peter Dussmann’s active
involvement in the company had already
ceased in autumn 2008 due to illness.
In December 2010, the Dussmann Group
became a management foundation and his
wife, Catherine von Fürstenberg-Dussmann
took on the chair of the board of trustees.
Since then, the Dussmann Group has been
managed by the board of trustees in
cooperation with the executive board.
The management foundation lends
the Dussmann Group structural stability
now and for the future.
“It all started in May 1963 as a good idea, cleaning private
apartments in Munich. Over the following 50 years,
Peter Dussmann built it into one of the largest private
multi-service providers worldwide. His focus was
always on the needs of his clients, of his employees and
of society in general. We will remember him as an
outstanding personality with exceptional creative drive”.
Wolfgang Clement
Member of the Board of Trustees of the Dussmann Group
Dussmann Group Annual Report 2013
7
DUSSMANN SERVICE
Strategic Cornerstones Strengthened
The company division, Dussmann Service
is one of the largest German providers of
Facility Management services: from
technical services to catering, security,
reception and cleaning services to commercial facility management and energy
management.
Information
FM in Germany
The Facility Management sector generates
112 billion Euros which
represents five percent
of gross domestic
product (GDP). The FM
market comprises many
different large and small
competitors. The ten
companies with the
highest revenues
contribute less than ten
percent of the total.
(Source: German Facility
Management
Association, GEFMA)
In 2013, Dussmann Service continued to
be the preferred partner of many market
leaders maintaining long-term strategic
partnerships. Sector-specific knowledge
of operational service processes makes
a significant contribution to an increase in
the client’s productivity. A prerequisite is
operational excellence and this is provided
by Dussmann Service through deployment
of well qualified personnel. In accordance
with this strategy, Dussmann Service
formed the service teams for two major
new contracts starting in 2014.
Dussmann Service has also proved its sector expertize
in school cleaning operations.
Sector Specialization Generates
New Contracts
The Sector Specialization of the Dussmann Group
Technical
Services
Cleaning
Integrated
Facility
Management
Catering
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Dussmann Group Annual Report 2013
Security
Sector specialization is demonstrated by
the growing number of new contracts in
the health care sector, particularly in Italy
and Austria. Another example: an industrial
manufacturer with international activities
contracted Dussmann Service with interior
cleaning including clean-rooms and
technical systems. In Mecklenburg-WestPomerania, the demonstrable experience of
catering for schools and child-care facilities
was the decisive factor for the resolution of
a private educational institute to outsource
its catering operations to Dussmann.
The total net sales of new contracts gained
in 2013 were 139 million Euros which was
higher than in the previous year. A number
of major contracts in Germany and abroad
played a significant role in the increase.
These included a cleaning contract with
all state schools in Tuscany and Apulia
in Italy. The Italian subsidiary also won new
contracts with transport companies.
Together with Christian Rach, Catherine von Fürstenberg-Dussmann presented the vegan meal range.
Twelve percent of the German population has reduced meat in their diets; 800,000 Germans are vegans.
Recipe for Success: New Ideas
Its ability to predict trends enabled Dussmann
Service to develop further innovative services
in 2013. For example, Dussmann Service
was the first German caterer to introduce
vegan meals to its staff restaurants providing
its clients and their diners the opportunity of
balanced nutrition without meat. In addition,
the Dussmann Deli, the take-away version
of restaurant Ursprung with self-made foods
and products from regional suppliers, was
opened at Dussmann House in September.
The Dussmann Deli concept ideally
complements cafeterias and staff restaurants
and can also be deployed in hospitals and
schools.
In 2013, the quality of catering at Dussmann
Service was recognized with two awards: from
the German Institute of Service Quality (DISQ)
for best staff catering and from the trade magazine Catering inside as “Caterer of the Year”,
for restaurant Ursprung.
After opening facilities in Berlin and Wetzlar,
Dussmann KulturKindergarten gGmbH opened
a third in-house corporate child-care facility in
Munich for HypoVereinsbank. In May 2013, the
company division was licensed for operation
of youth welfare facilities in Bavaria and took on
responsibility for pedagogical care of around
80 apprentices at the youth residence in
Burghausen. In autumn 2014, two further
KulturKindergarten facilities in Wittenberg and
Coblenz will be opened.
Dussmann Group Annual Report 2013
9
KURSANA
Investment in
Vocational Training
In a German ranking of private providers of
facilities for the elderly, Kursana 2013 took
third place. The company grew by two new
facilities in Hesse: in March in Kriftel and
in November in Otzberg. Construction has
begun for a further facility in Büdingen in
the Rhine-Main area and a lease has been
signed in connection with a project in
Kürten-Bechen in Bergischen Land (NorthRhine-Westphalia) where building work
has commenced.
Meeting the Growing Demand
for Care with High Quality Standards
An essential prerequisite for sustainable
growth at Kursana during 2013 was
maintenance of the highest possible quality
standards. In Germany, life expectancy
is increasing and the number of people
needing care will grow from 2.3 million today
to 3.5 million by 2030. In order to be able
to meet the resulting demand for qualified,
motivated personnel, Kursana has continued
to invest in vocational and further training
just as it did during the previous years.
An apprenticeship campaign was launched,
aimed at raising the interest of young people
for nursing. Since 2009, the number of its
apprentices at Kursana has increased by
a factor of four, currently 650. Of these,
100 are being trained at a nursing college in
Romania where German language lessons
are part of the curriculum.
In order to attract further skilled personnel
from other countries and to integrate them
here, Kursana took part in pilot projects run
by the Federal Employment Agency in
cooperation with countries such as Spain,
the Czech Republic, Romania, Portugal and
Poland.
Services for All Generations
Kursana has developed concepts for
a number of different target groups and
generations. Following development of
concepts for young people in care from
the age 18 at some Kursana locations,
for example at Lingen and Nienhagen
(Lower Saxony), the first kindergarten at
a Kursana facility was opened: Waldkindergarten Nienhagen. Children and seniors
spend time together on a daily basis which
builds a bridge between generations. It is
the first project of its kind in Lower Saxony.
Kursana continued to invest heavily in vocational training and since 2009, has increased
the number of its apprentices by a factor of four. Currently 650 young people are learning
an occupation with a future: geriatric nurse.
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Dussmann Group Annual Report 2013
OUTLOOK
2014: Internationalization
as a Driver of Growth
The Dussmann Group is optimistic about
the current financial year and intends
to grow organically in terms of sales and
employees.
Today, around half of the current workforce is employed by one of the inter­
national subsidiaries. From this base, the
Dussmann Group will extend its activities
further into international markets and drive
intelligent know-how transfer between all
companies in both directions. Germany
and especially Berlin remain central to
the company. The high standards of
quality applied on an international basis
and the confidence shown in products
“Made in Germany” help the Dussmann
Group to gain a competitive edge in each
of its local markets.
Highlights during the current year included
the start of three major new contracts.
Operations at the biggest German
contract in the company’s history started
in April; the contract with a major bank
employs around 1,100 Dussmann
employees at several hundred locations
nationwide. In January, the Dussmann
Group took on technical and infrastructural services for a Swiss company at
55 locations. The Dussmann Group’s first
PPP project in the health care industry
started operations in March 2014 at two
clinics where Dussmann Service will
provide technical and infrastructural
services for the next 25 years as a
subcontractor.
Services on the healthcare market will continue
to act as a driver for growth at the Dussmann Group
In 2014 and 2015, Kursana will open two
further facilities in Oberhausen and Straelen
(North-Rhine Westphalia) and in Mücke
(Hesse) in addition to those in Büdingen and
Kürten. In the coming years, the organization
plans to expand its scope of out-patient care,
community residential models and sheltered
accommodation.
Dussmann Group Annual Report 2013
11
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