Bundesdruckerei recorded a successful 2010 financial year with turnover up by 12 percent to €348.7m. ID system business once again turned out to be the growth engine in national and international business. The most important project was the introduction of the new German ID card, one of the most demanding technology projects worldwide. With substantial investment in personnel and technology, Bundesdruckerei strengthened its innovative power and laid the foundation for sustainable growth in the years to come.
The first complete financial year with the new owner, i.e., the German federal government, was marked by the introduction of the new German ID card. 2010 set a new course for Bundesdruckerei both in operative business and in terms of strategic orientation. The clear recovery of business also shows that our strategy of focusing our core business on secure ID was the right decision. “Thanks to significant investments in recent years, we have managed to become an international pioneer in this core business,” notes Ulrich Hamann, CEO of Bundesdruckerei GmbH in Berlin. Especially the new ID card with its performance and security features which in many respects are unique, underpins Bundesdruckerei’s expertise as a high-security technology systems supplier.
The “Secure ID” turnover engine
Bundesdruckerei GmbH managed to increase its total turnover to €348.7m (2009: €311.8m). This corresponds to a 12 percent increase against the previous year. ID system business once again accounted for the lion’s share of turnover. Bundesdruckerei supplies complete systems that protect identities – from the secure management of personal data and the production and issuance of ID documents right through to document verification. In this growth segment, the company recorded turnover of €244.8m on the German market, corresponding to a 15 percent increase in turnover (2009: €213.1m). The new electronic ID card that was launched in Germany on 1 November 2010 also contributed to this figure. In the months of November and December 2010, more than 700,000 ID cards were delivered. By the end of August 2011, this number has already totalled more than seven million. As a full-service supplier of secure ID systems, Bundesdruckerei has an excellent international reputation and is an increasingly sought-after partner. With turnover of €32.2m, the company recorded a significant increase in international business (+64 percent against the previous year). This was especially due to contracts for eID systems, ID systems and system components for the new EU member states as well as Latin America and the Middle East.
With security printing products, such as banknotes, postage stamps and revenue stamps, Bundesdruckerei recorded total turnover in the financial year of €71.7m (2009: €73.5m). Banknote turnover totalled €51.9m and remained below the previous year’s level, but was still above the average annual turnover since the introduction of the euro.
Sound result despite high investments
Thanks to the strong recovery of business in 2010, Bundesdruckerei recorded EBITDA (earnings before interest, tax, depreciation and amortization) of €51.9m (2009: €61.0m) despite upfront costs and start-up investments of around €50m for the new German ID card. Adjusted by the effects according to the Accounting Law Reform Act (BilMoG), EBITDA totals €34.2m. In 2010 too, Bundesdruckerei went to great lengths in order to secure and develop its leading competitive position. The number of employees in the Group rose by 14 percent to an average of 1,881 (excluding apprentices and interns/trainees). Investment in tangible and intangible assets was increased by €35.3m to €64.7m. Most of these funds were spent on the construction of a high-tech production line for the new ID card and for new hardware and software for passport and ID card issuing authorities. What’s more, the company intensified its research and development commitment considerably. Expenditure on corresponding R+D projects rose in the past financial year by 51 percent to €356.2m (2009: €37.1m). Together with its affiliated companies D-Trust GmbH and Maurer Electronics GmbH, the Bundesdruckerei Group is today in a position to meet market demand for full-scale one-stop solutions and to cover the entire value chain of state-of-the-art ID systems. During the course of the introduction of the new ID card, D-TRUST – initially developed as an accredited and certified trust center – managed to more than double turnover to around €12.5m by establishing and operating the public key infrastructure (PKI) for the online ID card function. in 2010, Maurer Electronics, which focuses on development and services for Bundesdruckerei, recorded a significant increase in turnover compared to 2009. This increase of €8.1m to €11.6m was due to the establishment of two new locations in Hamburg and Hanover. The Bundesdruckerei Group is completed by the wholly owned Polish subsidiary iNCO, a specialist in publication systems and the digitization of complex documents, as well as the Group’s 25 percent shareholding in Shanghai MITE, a manufacturer of passports for China.
Outlook for the 2011 financial year
With its focus on the strongly growing “Secure ID” business field, Bundesdruckerei has created a basis to expand its national and international market position even further. In the security printing segments, the company’s USPs are its supreme quality and security standards. Furthermore, 2011 also saw the launch of a programme designed to improve profitability and cost efficiency in all business fields. “We are determined to boost our ability to succeed in international competition even further. We have created important preconditions for this in recent months,” notes Ulrich Hamann.
- Bundesdruckerei steps up research work at the Fraunhofer “Secure Identity” innovation cluster (silicontrust.wordpress.com)