The Dussmann Group fills all Executive Board Positions and Reports Gains for 2016

18.05.2017 — Three new members join the executive board in August 2017: Dr. oec. Wolfgang Häfele, Dieter A. Royal and Wolf-Dieter Adlhoch // Total sales for all company divisions and 16 international subsidiaries increased by 2,2 percent or 46 million Euros over the previous year, to 2.13 billion Euros

Three new members join the executive board in August 2017: Dr. oec. Wolfgang Häfele, Dieter A. Royal and Wolf-Dieter Adlhoch
Total sales for all company divisions and 16 international subsidiaries increased by 2,2 percent or 46 million Euros over the previous year, to 2.13 billion Euros
Growth was almost entirely organic
All core business sections generated increased sales
EBITDA on consolidated group sales remained stable at 5.8 percent for 2016
The workforce grew by around 300 people to 63.521
Forecasts for business development in 2017 are positive, target growth: 5 percent

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The multi-service provider, the Dussmann Group Berlin, expands its executive board. Three new board members have signed contracts and will join the Dussmann Group executive board in August 2017: Dr. oec. Wolfgang Häfele, Dieter A. Royal and Wolf-Dieter Adlhoch. The executive board is now complete with a total of six members.

“We are looking forward to working together with these very experienced managers” says Catherine von Fürstenberg-Dussmann, Chairperson of the Dussmann Group board of trustees at the company’s annual press conference on May 18, 2017 in Berlin. “Dr. Häfele, who is a top manager from the facility management sector, takes on board responsibility for the D-A-CH-countries and is board spokesman. Like my husband, Peter, he comes from Baden-Württemberg. The experience Mr. Royal, our new CFO, has gained in executive positions with global players will serve our company well. And we are happy to have Mr. Adlhoch join us as a specialist for strategy with expertise from the facility management sector and politics” concluded Catherine von Fürstenberg-Dussmann.

Dr. oec. Wolfgang Häfele (born 1959) will take on board responsibility for the D-A-CH region and also as spokesperson for the Dussmann Group executive board. Dr. Häfele comes from the service company Mitie Group Plc. in London, where he was managing director, central Europe since 2011. For the preceding ten years, he was on the board of M+W Zander Holding AG. After gaining a diploma in economics and his doctorate, Dr. Häfele worked for the Stuttgarter Bank AG as director and, for many years, as director of the business development department of the City of Stuttgart. From 2010 to 2012 he was chairman of the supervisory board of the Metabo AG and has been the chairman of the advisory board to the Elevion Group GmbH since 2013.

Dieter A. Royal (born 1963) will be the new Dussmann Group CFO. He is currently working as a consultant and interim manager. From 2007 to 2014 he was head of finance and later CFO at Rolls-Royce Power Systems AG/Tognum AG. Previous experience includes head of M&A and Investor Relations at IWKA AG (now KUKA AG) from 2006 to 2007 and head of controlling and corporate development at the Coperion Group from 2003 to 2006. Royal, a graduate in economics, previously held a number of international posts with the West Private Equity Group and the Dresdner Bank AG/Dresdner Kleinwort Group.

Wolf-Dieter Adlhoch (born 1975) will take on the new position of Chief Strategy Officer (CSO) on the executive board. He will also take on responsibility for the HR, legal and compliance departments. He gained experience in facility management during his five-years with Bilfinger SE (2011 to 2016) where he was, among other things, head of corporate strategy. Adlhoch is a law graduate and has headed major corporate projects as well as political economic, financial and tax projects. Since 2016, he has been head of the taskforce Brexit at the Hessian state chancellery. Adlhoch also worked for the Hessian state chancellery from 2005 to 2011 including as head of principle affairs.

Jörg Braesecke has been carrying out the duties of board chairman and CFO on an interim basis since January 2017. From August 2017 he will focus exclusively on his board responsibility for the company division Care & Kids. Hakan Yapici, who has had interim responsibility for the D-A-CH countries will concentrate on service activities in the EMEA region. Pietro Auletta remains member of the board with responsibility for the Italian subsidiary.

The Business Year 2016
The increase in sales was largely due to new facility management contracts and contract expansion with existing clients. In 2016 Kursana, as a provider of nursing and care for the elderly, opened an additional seniors’ facility and Dussmann KulturKindergarten opened a new corporate childcare facility. The acquisition of the elevator manufacturer, HEBO, in March 2016, strengthened the technical expertise of the Dussmann Group in line with its plans for the coming years.

At the beginning of 2017, the Dussmann Group acquired a medium-sized refrigeration and air-conditioning specialist in Austria. These services are now provided in self-delivery in three countries: Germany, Poland, and Austria. The highlight of the year 2017 so far is a Germany-wide contract with Telefónica Germany. As from September 2017, Dussmann Service will be responsible for extensive FM services at ten office locations and 195 shops of Germany’s largest German mobile provider.

The chairperson of the Dussmann Group board of trustees, Catherine von Fürstenberg-Dussmann (66), said at the annual press conference in Berlin on May 18, 2017: “We intend to increase sales further in 2017 and have set ourselves a target of five percent. We plan to grow outside Germany where our largest international subsidiaries are in Italy and Luxembourg. But I also see huge potential in the United Arab Emirates and the other Gulf states, as well as in Far East. Our new executive board member for the EMEA region, Hakan Yapici has excellent contacts there” added Catherine von Fürstenberg-Dussmann.

“We will be taking a more forceful approach to expansion, specifically by acquiring companies with specialist skills” predicted Dussmann Executive Board Chairman, Jörg Braesecke (50) elucidating future company strategy. “On the Swiss FM market, we are currently assessing acquisitions. To facilitate the growth of our smaller international subsidiaries, we are investing in structures and management. At the beginning of 2017, for example, we appointed a successful manager in Switzerland who had previously worked for the competi-tion. In the far east, we have appointed a first-class healthcare market expert” said Braesecke.

Worldwide, the number of employees rose in 2016 by 297 to 63,521 including those working in operations managed by the Dussmann Group. Per capita sales have been rising for several years due to the growing proportion of technical, less personnel-intensive services. In Berlin/Brandenburg, the number of employees rose from 5,950 to 6,100.

The Business Divisions in Detail: Developments in 2016 and Outlook
The facility management division, Dussmann Service, won new contracts in Germany, Luxembourg and Italy which made significant contributions to increased sales in 2016.

The Linde AG contracted Dussmann Service Germany with technical and cleaning services. Additional gains were made under the contract with Grün Berlin GmbH for security services in seven parks following a Europe-wide tender. The IGA Berlin 2017 selected Dussmann Service. In total, the increase in sales in Germany was lower than in previous years, among other reasons, due to reduced services for refugees.

In 2016 Dussmann Service in Italy won a contract with a leading manufacturer and provides 25 different services at its largest plant near Bologna. Major new contracts with public authorities for cleaning and catering in hospitals and schools were also won in the course of the year. The surgical sterilization subsidiary, Steritalia won a major new contract with a prestigious hospital in Bergamo.

The Luxembourg subsidiary generated the highest percentage increase. It expanded its catering services to schools and won an important new security services client, CFL - Luxembourg railways. In Austria too, increased sales were generated in the catering and security divisions.

In the Middle East, major technical services and cleaning services contracts led to significant growth. Since 2016, Dussmann operatives have been providing a comprehensive service package at the Bawabat Al Sharq Mall in Abu Dhabi. Dussmann was contracted by the Landmark Group to carry out technical services in two shopping centers in Dubai. The scope of service provision in Masdar City, the first “zero carbon city” in the world was wid-ened. The most recent cleaning contract and a 24/7 helpdesk in the Ramada Hotel in Abu Dhabi demonstrate that the drive, started in February 2017, to generate more business has already born fruit.

In the Far East, activities are focused on the healthcare sector. Following appointment of the healthcare specialist, the Dussmann Group expects steady growth in this region. In summer 2016, Dussmann was contracted with a major security contract at the GE China Technology Park near Shanghai. In Hong Kong the cleaning and maintenance contract with the luxury residential park “Mayfair by the Sea” was started in April 2017.

The technical Group sections, DKA (installation and service of refrigeration and air-conditioning systems) and HEBO (manufacture and service of individual premium elevators) generated significant growth in 2016.

The positive development at Kursana and Dussmann KulturKindergarten (company division Care & Kids) during 2016 was due to new facilities and excellent occupancy at existing facilities. All Kursana facilities in Germany received energy management certification according to the new EU norm DIN EN ISO 50001. In September 2016, the sixth Dussmann KulturKindergarten opened at 50Hertz Netzquartier at the Berlin central train station.

The positive development at Care & Kids will continue. Kursana plans to open three new facilities in North Rhine Westphalia, each with 80 places: Straelen (opening autumn 2017), Oberhausen (opening 2018) and Hamminkeln (opening autumn 2018). Kursana is boosting activities by expanding its scope of outpatient services. On 01.04.2017, a private outhouse care services provider in Hamburg was acquired.

In autumn 2017, the seventh Dussmann KulturKindergarten will be opened in Wittenberg. It will be extended in 2018 through the addition of a nursery with 90 places.

Dussmann das KulturKaufhaus concluded 2016 with stable sales despite extensive ren-ovation during day-to-day operations and maintains its position as a market pioneer in book and media retailing. In February 2017, the KulturKaufhaus celebrated the completion of renovation work with a housewarming party in anticipation of its 20th anniversary in October.

With 63,500 employees in 16 countries, the Dussmann Group carries out services for people, by people. The largest company division, Dussmann Service provides technical services, catering, security and reception services, cleaning, surgical sterilization, commercial property management and energy management. DKA installs refrigeration and air conditioning systems and offers after-sales services. HEBO Aufzugstechnik GmbH installs new premium elevators and modernizes, repairs and services existing ones. Kursana manages nursing and care services for 13,600 seniors. In addition, the Group operates the media department store Dussmann das KulturKaufhaus in Berlin and provides inhouse corporate child care by Dussmann KulturKindergarten. In 2016, the Dussmann Group generated total sales of 2.13 billion Euros.