Dussmann Sees Significant Growth in Anniversary Year 2013
21.05.2014 — Increase in sales of over 100 million Euros to 1.84 billion Euros/ more than 1,000 new employees / successful family enterprise with strong value orientation/ in the year of its 50th anniversary, the Dussmann Group takes leave of the company founder / more cross-border, sector specific solutions and expansion of international activities planned
In 2013, the Berlin multi-service provider, the Dussmann Group continued to grow for the tenth consecutive year. Total sales of 1.84 billion Euros were generated worldwide – an increase of 6.6 percent or 114 million Euros. In 2012 total sales were 1.73 billion Euros. The growth was organic, complemented by the acquisition of a refrigeration and air-conditioning specialist. In May 2013, the Dussmann Group celebrated its 50th birthday.
In 2013, the multi-service provider saw continued success in both of its core markets of facility management (FM) and nursing and care for the elderly. The Dussmann Group is one of the few family enterprises on the FM market which prevails in the face of market concentration and keen competition. The group reinforced the three most important elements of company strategy in 2013: the expansion of the service portfolio, the development of sector expertize and further international orientation. But there was sad news too: on September 26, 2013, the company founder, Peter Dussmann, died aged 74 following a long illness. He had already withdrawn from active involvement in the company in autumn 2008. In December 2010, a management foundation took on management of the Dussmann Group and his wife, Catherine von Fürstenberg-Dussmann became chairperson of the board of trustees.
At the annual press conference on May 21, 2014, Catherine von Fürstenberg-Dussmann stated: “The business that my husband built up with entrepreneurial vision and irrepressible creativity is carried on today by the board of trustees together with the executive board. The management foundation has established a stable structure that safeguards the long-term future of the Dussmann Group. We are a family enterprise which provides services for people, by people. We know we need to be innovative, to put new ideas for our clients into action and to impress with our quality standards. The company’s most important responsibility is for sustainable, value-oriented development to the benefit of our clients and our employees.
CEO, Dirk Brouwers rated the anniversary year a positive one: “All of the company divisions contributed to the successes across the world which enabled us to welcome 1,000 new employees to the Dussmann Group. We have seen strong growth in our service activities, particularly in Germany. The acquisition of Dresdner Kühlanlagenbau GmbH has extended our specialist skills in the technical services division to include refrigeration processes. The trend among German companies towards outsourcing extensive secondary processes to service providers continues. We offer them the Dussmann model; we provide the whole range of services from a single source with a very high proportion of self-delivery.”
The robust, crisis-proof business model practiced by the Dussmann Group proved advantageous. Large sections of business activities, services to the public sector and nursing and care for seniors, are largely independent of developments in the general economy.
In April 2013, the Dussmann Group acquired all shares in Dresdner Kühlanlagenbau GmbH (DKA), a refrigeration and air-conditioning specialist. More than 500 employees work for DKA constructing refrigeration and air-conditioning systems and providing subsequent service. This was the first acquisition in the German services division since 1999 and over the course of the year the subsidiary was integrated into its structures.
Operative results were satisfactory but fell short of expectations and of the results of 2012. The EBITDA margin on consolidated group sales for 2013 was 5.6 percent. The shortfall was caused by setbacks in the activities of the subsidiary in the United Arab Emirates.
In 2013, the Group continued to focus on the provision of sustainable services. Service concepts in all service divisions follow the principles of Dussmann EcoSystem. These include cost-efficiency, high social standards, cleaning methodology which minimizes use of resources, energy savings through technical management and safe, sustainably produced foods. The company will extend the application of these principles to international operations.The second Dussmann Group social responsibility report was published in May 2014 with insights into the company’s activities with respect to environmental, economic and social sustainability.
The Dussmann Group’s Greatest Asset: Over 61,000 Employees
The number of employees including those in operations managed by the Dussmann Group rose from 60.213 in 2012 by 1,008 to 61.221 (average during 2013). The
Dussmann Group takes responsibility for its workforce, pays fair wages punctually, encourages mutual respect in day-to-day dealings and provides good working conditions. There is a wide range of opportunity for personal development. The focus of human resources strategy in 2013 was to recruit experienced, skilled personnel and to extend the knowledge and skills of the existing workforce through training. Maintenance of the high quality standards established by the Dussmann Group in its expanding operations requires a growing number of suitable employees at the right time in the right place. To meet this demand, a vocational training campaign with focus on Dussmann Service was launched in 2013. Objectives were to increase the quality of training, to increase the number of apprentices and to employ a high proportion of these at the end of their training courses.
To increase brand recognition among potential applicants and to promote employee loyalty, the employer branding campaign, Working Heroes and a new careers portal have been launched. The campaign honors members of staff as daily heroes and care heroes. Potential new employees gain insights into the multi-facetted Dussmann world and the 250 associated occupations. Images portray the whole spectrum of services: from meals for millions of diners and the safety of business operations and assets to efficient commercial cleaning operations, friendly reception services and technical management with the new refrigeration and air-conditioning components. In addition there are the services involved in child-care at Dussmann KulturKindergarten and nursing and care for seniors at Kursana.
As from May 21, 2014, applicants can browse all of the vacancies at the Dussmann Group, Dussmann Service, Kursana, Dussmann das KulturKaufhaus and Dussmann
KulturKindergarten in the careers portal at karriere.dussmanngroup.com. There are currently nearly 200 vacancies.
Dussmann: One of Berlin’s Most Popular Companies
Berlin is increasingly important to the Dussmann Group – and vice versa. Not only have the company’s headquarters been located in the city since 1994; with 5,650 employees and sales of 153 million in Berlin and Brandenburg, the Dussmann Group plays a very important economic role in the region.
At the beginning of 2014, the Dussmann Group achieved excellent results in two surveys: In a Forsa survey initiated by the newspaper Berliner Zeitung, the company was rated number 4 among Berlin’s most popular companies and was the only private company among the top 5. In a GASAG survey of the reputation of private companies in
Berlin carried out by TNS Infratest, the Dussmann Group came second. For the criteria “standing” and “trust”, the company came first.
In Berlin, Dussmann Service employees are a familiar sight in many company buildings, health care facilities and public institutions. In 2013, the company welcomed many new clients, for example a Church health care organization which contracted cleaning at a number of facilities. And a shopping center where Dussmann Berlin provides cleaning services and, more recently, technical services too. Staff catering was taken on, among other clients for a food manufacturer and a public authority.
Dussmann Service: Strong Growth and Many New Contracts
The company division, Dussmann Service, is one of the largest German providers of facility management services from catering, security, reception, cleaning and technical services to commercial facility management and energy management.
FM in Germany (Source: GEFMA)
The facility management sector generates 112 billion Euros which represents five percent of gross domestic product (GDP). The FM market comprises many large and small competitors. The ten companies with the highest revenue contribute less than ten percent of the total.
In 2013, Dussmann Service continued to be the preferred partner of many market leaders maintaining long-term strategic partnerships. The service provider’s 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 provision teams for two major new contracts starting in 2014.
Many examples of sector specialization can be found among the new contracts with the health care sector, particularly in Italy and Austria. Another: an international chip manufacturer contracted Dussmann Service with interior cleaning, clean-room cleaning and cleaning of technical systems. In Mecklenburg-West-Pomerania, the demonstrable experience of catering for schools and child-care facilities was the decisive factor in the resolution of a private educational institute to outsource its catering operations to Dussmann.
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.
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, a contribution to balanced nutrition without meat. Twelve percent of the German population have reduced meat in their diets; 800,000 Germans are vegans.
In September 2013, the Dussmann Deli, the take-away version of restaurant Ursprung with self-made foods and products from regional suppliers was opened at Dussmann House. The Dussmann Deli concept can be deployed by other companies to complement cafeterias, staff restaurants and for hospitals and schools.
In 2013, the quality of catering at Dussmann Service was recognized with two awards: as best staff catering company and as “Caterer of the Year” for restaurant Ursprung. The café-restaurant operates on the principle of sustainability. Suppliers are exclusively regional and many foods are served in organic quality. The concept can be deployed by clients too.
Dussmann KulturKindergarten gGmbH, a subsidiary of Dussmann Service opened a third in-house corporate child-care facility in Munich for HypoVereinsbank. In May 2013, the company 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 will be opened; at Stickstoffwerke Piesteritz in Wittenberg, a kindergarten will open in September 2014 and operations at the child-care facilities for the military hospital in Koblenz with 42 places start in October 2014. At the contract signing ceremony in Berlin on May 8, 2014, Gerd Hoofe, state secretary at the federal ministry of defense said: “We aim to be highly employee-oriented and family-friendly. We intend to make ourselves one of the most attractive employers. Our employees can relax knowing that their children are nearby and well cared for. We selected Dussmann as a highly professional partner for child-care who can offer a great deal of knowledge and experience in operating such facilities”.
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 (North-Rhine-Westphalia) where building has commenced.
The most important 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 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. Following development of concepts at some Kursana locations for young people in need of care from the age of 18, 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 – the first project of its kind in Lower Saxony.
Future Plans
The Dussmann Group is optimistic about the current financial year and intends to grow organically in terms of sales and employees. The Dussmann Group will extend its activities further into international markets. Dirk Brouwers comments: “We are driving intelligent know-how transfer between all of our companies in both directions. Today, around half of our current workforce is employed by one of our international subsidiaries. We have resolved to promote more intensive cooperation and have eliminated the differentiation between German and international service divisions. The organization is facilitated by a matrix with where the holding functions as hub. This fusion strengthens our identity as a globally active service provider with Germany and, in particular, Berlin at the center. The confidence shown in products “Made in Germany” and the high standards of quality applied on an international basis help us to gain a competitive edge in each of our local markets.”
Highlights during the current year included the start of three major 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.
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.