2 Facts and Figures018 - Gegenbauer...BUSINESS UNITS INFRASTRUCTURAL FACILITY MANAGEMENT €335.8...

Facts and Figures

2018

A service provider grounded in commitment and passion

Since 1925, Gegenbauer has provided services for properties and the people who move about in them. Our wealth of experience has made us one of the leading Facility Management providers in Germany employing more than 18,000 people in a wide-ranging, fast-growing and forward-looking sector. We focus on the fair performance of service and management concepts in which high quality, smooth processes and sustainable solutions take centre stage.

BUSINESS UNITS

INFRASTRUCTURAL FACILITY MANAGEMENT

€ 335.8 million 13,626

INTEGRATED FACILITY MANAGEMENT

€ 396.6 million 4,548

Building Cleaning / Health Care Service

€ 219.7 million 9,863

Technical Building Management

€ 325.4 million 3,813

Property Services

€ 64.8 million 1,516

Industrial Services

€ 55.8 million 540

Security Services

€ 43.6 million 1,860

Location Management

€ 15.4 million 195

Aviation Services / Other Services

€ 7.7 million 387

2 GEGENBAUER FA C T S A ND F I G U R E S 2 018

Profile

2018 was a financial year characterised by countless challenges in which the Gegenbauer Group was able to strengthen its position in one of the most important economic sectors as well as in Germany’s most important B2B service market and expand its collaboration with important cus-tomers. The Facility Services market, which has been growing continuously for years, proved to be post-cyclic and stable in 2018. However, it also continued to be extremely competitive and was marked by a high pressure on margins.

Once again we managed to stand strong in this environment due to our orientation towards quality and customers, flexibility and a clear strategic focus. At the same time we faced the challenges of democratic change and a shortage of qualified employees. With competence, commitment and creativity the more than 18,000 people who work for Gegenbauer in Germany and other European countries, did their bit to make the last financial year the most successful one since the company was founded.

VERY SATISFYING BUSINESS DEVELOPMENTIn 2018, the Gegenbauer Group was able to continue its positive development with a turnover growth to € 732.4 million. This equates to a growth in real terms of 5.1 per cent. Our operational results once again reached our previously defined objectives with a slight increase compared to 2017.

CREATING GROWTHDigitalisation, which increasingly goes hand in hand with economic, technical and human change, has a particular far-reaching and lasting impact on the Facility Management sector. As a service provider that is strongly linked to the core business of our customers, we are particularly driven by the automation of processes in the course of digital transformation. With this in mind, in 2018 we continued to develop innovative business processes and an entrepreneurial environment, which guarantees the level of service quality and client focus our customers expect.

The Gegenbauer Group is strategically well-positioned to focus on the future. We focus on profitable growth, value-enhancing investments, competent staff and efficient processes. We have set clear objectives – this applies to turnover as well as to financial results. In the medium-term we want to increase annual turnover by more than 4 per cent and at the same time generate a stable EBITDA margin as projected. We have defined the strategies and measures to do this, which also include further portfolio measures to focus the scope of services. The Integrated Services segment, for which particular growth potential is forecast, will continue to be of special significance.


Introduction

Profitable growth in a demanding market environment

German economy loses momentum – employment market

remains robust

In 2018, the German economy continued along its growth path,

however, the economy was increasingly affected during the

course of the year by a difficult foreign trade environment

as well as by temporary on-off effects in the automotive

industry. Salaries continued to rise, nonetheless, customer

demand from private households fell slightly. The employ-

ment market remained robust. Employment continued to rise

by an annual average of 1.3 per cent to a new all-time high of

44.8 million people. With an addition of 384,000 employees,

the service provider sector experienced particular growth.

Digital business models change Facility Management

With around € 135 billion gross value added, that is to say, a

share of almost 4.8 per cent of GDP, the FM sector, according

to “Facility Management Report 2018”, asserted itself as a

stabilising factor for the German economy.

Also of importance in the past financial year is the growing

trend of digitalisation, especially in the light of customers

and service providers increasingly understanding the many

possibilities of this diverse technological mega trend. In this

way, significant potential can not only be seen by implement-

ing digital solutions to increase convenience and efficiency

for the user, but also by digitalising customer communica-

tions as well as optimising in-house processes to save time,

reduce costs and improve time planning. However, data and

process standards, which at present are insufficient for an

extensive digitalisation and atomisation of FM, are proving

to be an obstacle to innovation.

In launching our own cloud solution and delivering a range of

pilot projects successfully (e.g. the use of sensor technology,

the connection of central building control systems and devel-

oping specific customer dashboards), the Gegenbauer Group

completed a further development phase of the digital trans-

formation of its business fields.

Once again the strongest turnover growth in Integrated FM

In the financial year 2018, the consolidated turnover of the

Gegenbauer Group amounted to € 732.4 million (previous

year: € 696.6 million). € 396.6 million of that came from the

Integrated Facility Management unit, which combines the

Technical Building Management, Industrial Services and

Location Management units (previous year: € 374.3 million).

This equates to a growth of 6.0 per cent. The highest contri-

bution came from the Technical Building Management unit,

whose sales revenue of € 325.4 million corresponds to an

increase by 7.7 per cent compared to the previous year. While

the Location Management unit was also able to generate a

sales growth of 2.0 per cent to € 15.4 million, the revenue

from the Industrial Services unit decreased by 2.4 per cent

to € 55.8 million.

Increase in sales revenue of 7.7 per cent in the Technical Building Management unit.

In the course of portfolio measures, the activities of the Prop-

erty Management unit terminated at the end of 2018 with the

sale of Property First GmbH. In the future, the company with

headquarters in Bochum will operate as part of the Dutch

property management company MVGM Vastgoedmanagement

B.V. and will continue to operate under its known name.


Report on the business situation

The Infrastructural Facility Management unit, which includes

activities for mainly commercially influenced services such as

Building Management/Health Care Services, Property Services,

Security Services and Aviation Services/Other Services, gen-

erated a turnover of € 335.8 million. Compared to the previ-

ous year (€ 322.3 million) this amounts to a growth of 4.2 per

cent. The units with the highest turnover Building Cleaning/

Health Care Services achieved a growth of 5.8 per cent to

€ 219.7 million (previous year: € 207.6 million), the Property

Services unit increased by 5.7 per cent to € 64.8 million (pre-

vious year: € 61.3 million). In contrast, the turnover of the

Security Services suffered a decline to € 43.6 million while

the previous year had generated € 46.6 million (– 6.4 per cent).

The Aviation Services/Other Services unit showed a growth

of 13.2 per cent which resulted in a turnover of € 7.7 million

(previous year: € 6.8 million).

Strong customer relations enhanced by retaining

many existing portfolios

Aside from implementing major projects, 2018 was dedicated

to intensifying collaboration with renowned existing custom-

ers as well as numerous new customers. Backed by the sound

economic situation as well as a high level of customer satis-

faction, the successful financial year was achieved not only

through contractual services but also through extensive

special contracts such as for conversion or modernisation

measures. Furthermore, we carried out ambitious assign-

ments in the course of the year, among others, the Technical

Operational Management as well as Repair and Maintenance

Services for more than 600 properties of a financial service

provider operating nationwide.

Bundling FM contracts in the course of nationwide tenders as

well as continuing to professionalise and centralise customer

structures proved to be strong market trends.

EXTERNAL SALES IN %

44Technical Building Management

8Industrial Services

9 Property Services

30 Building Cleaning /

Health Care Services

54 % INTEGRATED FACILITY MANAGEMENT

46 % INFRASTRUCTURAL FACILITY MANAGEMENT

1 Aviation Services /Other Services

6 Security Services

2Location Management



Over 220 new jobs created – training activities

expanded once again

In 2018, an annual average of 18,174 people were employed

by the Gegenbauer Group. Thereby the workforce has increased

by 1.3 per cent compared to the previous year, which corre-

sponds to an additional 226 employees. At the same time the

business units developed to the opposite direction. While the

Integrated Facility Management unit created 311 new jobs

(+7.3 per cent), the workforce of the Infrastructural Facility

Management unit decreased by 84 (– 0.6 per cent) compared

to 2017.

The Gegenbauer Group expanded its apprenticeships activi-

ties once again during the reporting year. In autumn 2018,

136 young people started their career in one of 13 vocational

training programmes, or one of five study courses, in the ver-

satile field of Facility Management, which is rich in prospects.

So currently, across all training years, about 360 apprentices

and students are starting their careers at Gegenbauer, whereby

the company continues to count amongst the leading employ-

ers in this sector.

Sustainable HR structure created

With the continuing company growth, and the increased HR

demands in mind, this unit was restructured in 2018 to estab-

lish the conditions required for a sustainable HR structure.

In April 2018, Fabiola Fernandez Grund took on executive

responsibility for the Personnel department. At the next level

strategic and operative tasks were divided. In doing so, Anke

Doose, long-standing Personnel Manager at Gegenbauer, took

on responsibility for the Personnel Support and Development

units as well as HR projects, while Claus Kohls continues to

be responsible for the collaboration with social partners as

well as Recruitment and Training.

Insightful staff survey delivers complex impulses

In our personnel intensive field of service, satisfied customers

and committed employees are ultimately two sides of the same

coin and critical for the long-term success of the company.

74 per cent of the workforce rated their job at Gegenbauer positively.

In the course of a group-wide survey among all staff in 2018

we have gained an important awareness of workplace culture

at Gegenbauer. The survey results gave us complex impulses

for our joint task of being an even better employer for all

employees in future. Generally the survey reveals that 74 per

cent, a clear majority, rates its workplace positively and feels

an above-average loyalty to the company.

17,947

13,6264,548

18,174

EMPLOYEES (ANNUAL AVERAGE)

2017

2018

TOTAL

INTEGRATED FACILITY MANAGEMENT

INFRASTRUCTURAL FACILITY MANAGEMENT

13,7104,237



HR Excellence Award

In winning the HR Excellence Award 2018 in the category of

Recruiting Campaign (Group), Gegenbauer proved that devel-

oping and applying unusual, innovative recruiting instru-

ments not only appeals to apprentices but also convinces

experts. The trainee series CrewCrew was the first time a

Facility Management company in Germany used a multi-part

reality format to win over apprentices. The cross-media cam-

paign successfully introduced Gegenbauer as an employer

to a young audience in an entertaining way.

Girls’Day prize for Gegenbauer

In 2018, Gegenbauer hosted the worldwide largest career

orientation project Girls’Day for the ninth time and since

2010 has given more than 750 participants exciting insights

into various skilled occupations. The Berlin State Secretary

for Gender Equality, Managing Director of Chamber of

Trade as well as other members of the project awarded the

Gegenbauer Group with the 2018 Girl’sDay Prize for this com-

mitment. The Group’s Managers for Apprenticeships accepted

the prize, which has only been awarded twice so far, at the

Federal Board of the DGB (German Trade Union Federation).

ORGANIC GROWTH

+ 5.1 %EMPLOYEES

+ 227

As a leading player in the up until now mostly robust and stable sector, we expect to continue our growth path in the coming years.

Keeping an optimistic outlook in a complicated environment

In 2019, the German economy could lose some momentum.

In particular, international uncertainties such as global trade

conflicts, but also the up until now unpredictable economic

effects of Brexit, are a burden on the outlook for the current

year. Regardless, as a leading player in the up until now

mostly robust and stable sector, the Gegenbauer Group

expects it will be able to continue its growth path in the

coming years, particularly because the construction industry

continues to look optimistically into the future. The devel-

opment forecasts for the Facility Management market, which

amount to average growth rates of just about 4 per cent,

define our lower guiding framework for the years to come.

Since the employment market can expect a further decline in

unemployment, hiring qualified staff will also be a signifi-

cant factor for the Gegenbauer Group to successfully achieve

its ambitious growth objectives in the future.



ASSET SITUATION

The group balance sheet total as of 31 December 2018

amounted to € 225.6 million (previous year: € 224.7 million*).

Due to this adjustment and the amortisations of goodwill and

order balances, the intangible assets decreased in the finan-

cial year. Contrary to this, the capitalised goodwill increased

slightly due to the acquisition of minority shares from exter-

nal shareholders.

The growth of tangible assets from deliveries and services

are associated with the generated growth of the group in

the financial year 2018. The increase in equity capital is

mainly ascribed to the accumulation of € 4 million. The

equity capital ratio therefore increases from 18.8 to 20.3 per

cent. Irrespective of increased pension provisions, interest-

bearing liabilities could be reduced, in particular, due to

scheduled repayments of liabilities to credit institutions.

Economic stability for a sustainable future

Consolidated balance sheet (HGB) in € million 2018 2017*

Assets

Intangible assets 53.8 62.4

Fixed assets 37.6 37.4

Financial assets 2.4 2.3

Inventories, debts, other short-term assets, accrued income 125.2 116.0

Liquid assets 6.6 6.6

Total assets 225.6 224.7

Liabilities

Equity capital 45.8 42.1

Provisions 68.5 63.0

Liabilities, deferred income, deferred taxes 111.3 119.6

Total liabilities 225.6 224.7

* The previous year’s figures were adjusted due to exercising the option pursuant to section 268 (5) sentence 2 HGB (German Commercial Code).


Report on the financial situation

FINANCIAL SITUATION

Cash flow from operating activities (€ 24.8 million) mainly

came from the increased company annual net profit, adjusted

for depreciations and interest. The increase in working cap-

ital was counteractive compared to the previous year. While

the investments of 2017 were still clearly characterised by

the acquisition of minority shares from external sharehold-

ers, the net investments of the financial year of € 4.7 million

mainly came from operating activities. Capital expenditure

towards limited partners in addition to the distribution of

profit to non-controlling shareholders, proceeds from taking

up and paying off credits and loans as well as interest pay-

ments, resulted in a cash flow from financial activities of

€ 21.3 million. Thereby the cash flow statement as per

31 December 2018 of – € 0.7 million differs to the previous

year by – € 1.4 million.

CONSOLIDATED BALANCE SHEET 2018 (HGB) IN € MILLION

Exchange rate related

adjustments

Cash funds 31/12/2018

Cash funds 31/12/2017

Cash flow from operating

activities

Cash flow from

investments

Cash flow from financing

activities

– 0.1 – 0.7

+ 24.7 – 4.7

0.7

– 21.3


Report on the financial situation

2018 2017

Total sales (incl. internal group sales) in € million 814.4 773.1

Integrated Facility Management 406.2 380.6

Technical Building Management 334.9 308.1

Industrial Services 55.8 57.3

Location Management 15.5 15.2

Infrastructural Facility Management 408.2 392.5

Building Cleaning/Health Care Services 237.3 225.2

Property Services 72.3 68.2

Security Services 61.9 65.4

Aviation Services/Other Services 36.7 33.7

External sales in € million 732.4 696.6

Integrated Facility Management 396.6 374.3

Technical Building Management 325.4 302.0

Industrial Services 55.8 57.2

Location Management 15.4 15.1

Infrastructural Facility Management 335.8 322.3

Building Cleaning/Health Care Services 219.7 207.6

Property Services 64.8 61.3

Security Services 43.6 46.6

Aviation Services/Other Services 7.7 6.8

Employees 18,174 17,947

Integrated Facility Management 4,548 4,237

Technical Building Management 3,813 3,576

Industrial Services 540 463

Location Management 195 198

Infrastructural Facility Management 13,626 13,710

Building Cleaning/Health Care Services 9,863 9,914

Property Services 1,516 1,461

Security Services 1,860 1,975

Aviation Services/Other Services 387 360

Our figures 2018


Our figures 2018

PUBLISHED BY

Gegenbauer Holding SE & Co. KGFriedrichstrasse 9410117 Berlin, GermanyPhone +49 30 44670-0Fax +49 30 44670-90101E-mail [email protected]

CONCEPT AND REALISATION

HGB Hamburger Geschäftsberichte GmbH & Co. KG, Hamburg, Germany

PHOTOS

Title vingervlugPage 2 Andreas Labes

Information as ofMarch 2019

Everything New, All Our Contact Data,

Everything in Overview:

www.gegenbauer.de

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New Perspectives:

www.karriere-gegenbauer.de

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Documenting Sustainability:

www.nachhaltigkeit-gegenbauer.de

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Working in the Network:

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2 Facts and Figures018 - Gegenbauer...BUSINESS UNITS INFRASTRUCTURAL FACILITY MANAGEMENT €335.8...

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