Growth across business units for G&D

Germany-based technology group Giesecke & Devrient (G&D) has announced growth across its business during the 2005 financial year.

The company reports sales growth of 7% from 1.16 billion euros to 1.24 billion euros. It has also raised earnings (EBIT) 8%, generating a total of 80.7 million euros (equal to a 6.5% return on sales). Net income grew to 48.5 million euros, and capital expenditure amounted to 50.5 million euros, up 5.6 percent on the previous year’s level.

The company says its Card business unit maintained its position in a difficult market characterised by fierce competition caused by consolidation. “Despite plummeting prices, we closed the year with revenues of 595 million euros in this segment, which translates into 4.7% sales growth,” says Dr. Karsten Ottenberg, CEO and chairman of the management board G&D. “The Card business unit effectively improved its earnings power and defended its share of the global market, which it had aggressively expanded the previous year. G&D consistently broadened the positioning of its Industry and Government division.”

According to the company, one of the biggest growth drivers for its cards business in 2005 was the launch of the Austrian social insurance e-card, which saw 8 million cards delivered in six months.

G&D’s involvement in the government market also points to future growth opportunities for its cards business. In 2006, AOK, BKK and IKK became the first insurance companies to roll out the company’s Card Application Management System (CAMS). Their involvement means more than 40 million cards – or more than 50% of the total German market – will be managed by G&D CAMS in around 15 data centres.

Other opportunities in this segment include ePassports, ID cards and driving licences, which the company is delivering to several governments. For example, in 2005 G&D was awarded a contract by the Macedonian government to provide a combined system for personalising ePassports, personal ID cards and driving licences as well as other associated documents. The deal includes the delivery of 1.5 million ePassport documents with integrated microchips, 1.8 million personal ID cards and 500,000 driving licences. The company expects to receive more contracts soon from EU member states.

In its Paper Production and Banknote Printing segments, sales went up by 9.2% to 640 million euros in 2005.

G&D has now been reorganised into three market-driven business units. The Banknotes business unit consists of the Paper, Printing and Processing divisions. Cards and Services comprises the Payment and Telecommunications divisions. Government business was consolidated into a separate business unit, Government Solutions. The company has also formed a New Business Division to focus on innovation.