TÜV SÜD 2020 results and annual report

IIOA member TÜV SÜD has announced its 2020 results and published its annual report.

The headline numbers saw revenue of 2486m EUR, a 4% decline on 2019. Of the 4%, 2.2% was organic decline, 0.8% due to currency and 1% ‘portfolio effect’.

Commenting on the market for Technical Services, TÜV SÜV state, ‘There has been a shift in the relative importance of megatrends that have recently been driving the development of the TIC market. Digitization is accelerating and changing the working world in far-reaching ways. E-business, remote working and service delivery independent of location are on the rise. At the same time, consumer behavior is changing and necessitating the rethinking of business models, supply chains and the use of resources. Sustainability aspects are increasingly gaining in importance in evaluating entrepreneurial activity and companies are being called upon to assume greater responsibility for employees, the environment and society. This includes implementing new requirements for health and safety in the workplace as well as the development of specific sustainable services. At the same time, there is a trend towards more government intervention and regulation.

In particular, the restriction of the free movement of goods and persons to stem the coronavirus pandemic, coupled with lower investing activities in key industries, is currently slowing the development of the TIC market. In light of this, we expect positive market growth for the coming year 2021. A further increase in infection rates and continuing lockdowns may also lead to a contraction in market volume.’

Within the overall results, TÜV SÜD’s Certification Segment in 2020 saw revenue decline 4.2%, recording a 1% increase in the Product Services Division and a 15% decline in Business Assurance. TÜV SÜD note that, ‘The Certification Segment was also unable to avoid the effects of the Covid-19 pandemic. However, our international orientation, broad range of customers and comprehensive service portfolio prevented an even greater slump in business activity.’

For 2021, within the Business Assurance part of TÜV SÜD’s business , they state that,  ‘The certification business in traditional quality, environmental and energy management will recover fully, also buoyed by the introduction of remote audits and digital services such as the Audit & Certification Engine. The ancillary certification services, such as supplier audits, are a further revenue driver. In addition, we expect positive effects from the Industry 4.0 Readiness Index that was co-developed by TÜV SÜD as well as from our services relating to sustainability matters. We also see potential for further growth in IT-related certifications of our cyber security certification suite, which also includes ISO 27001 (information security management) or TISAX (information security in the automotive industry). We want to defend and expand our market leadership in Germany by providing a comprehensive range of services. At the same time, we are continuing to transform our business model into an even more customer-oriented and digitalized certification factory. Our global presence enables us to offer the certification of integrated management systems from a single source to customers around the world.’

The full TÜV SÜD Annual Report 2020 can be viewed here, with further details here.

• Financial Results
• TÜV SÜD