TÜV Rheinland achieves sustainable growth

Certification Company with global presence announces significant increase in revenues and profits in fiscal year 2022

LITTLETON, Mass., May 15, 2023 /PRNewswire/ -- TÜV Rheinland, the global testing services provider, closed fiscal year 2022, its 150th anniversary, with revenues of €2.275 billion (compared to €2.09 billion in 2021), an increase of 8.8%.

In the fiscal year 2022, TÜV Rheinland's operating result (EBIT - Earnings Before Interest and Taxes) at €180.3 million exceeded the previous year's result by €22.5 million, which was €157.8 million. The EBIT margin reached 7.9 percent from 7.5 percent in 2021. The workforce increased by 3.1% to 20,870 full-time employees worldwide. TÜV Rheinland's investments in 2022 increased by more than €33 million compared to 2021, reaching €90.8 million. With this, the investment volume increased by 57.4 percent.

Dr. Michael Fübi, CEO of TÜV Rheinland AG, highlights: "In 2022, we demonstrated once again that TÜV Rheinland is on stable footing, even in times of uncertainty and multiple crises. In our 150th anniversary year, we generated revenues of around €2.3 billion and solid earnings of more than €180 million. We could not have achieved this without the excellent performance and considerable expertise of our employees. The positive results mean that we can invest in our future and sustainable growth."

The equity of TÜV Rheinland, a company founded on October 31, 1872, as "Verein zur Überwachung der Dampfkessel in den Kreisen Elberfeld und Barmen" (Association for the Inspection of Steam Boilers in the Elberfeld and Barmen Districts), increased by €205.1 million from €436.2 million to €641.3 million in 2022. This brought the equity ratio to 27 percent in the reporting year (2021: 17.7 percent). Positive cash flow from operating activities totaled €245.8 million in the 2022 financial year (2021: €205.9 million).

Test, certify, and educate: growth across all business streams and regions
In 2022, TÜV Rheinland experienced revenue growth across all business streams and regions in which the company operates. Its employees conducted approximately 400,000 industrial inspections worldwide and tested around 300,000 products, in addition to inspecting nearly ten million vehicles and awarding a total of 50,000 certificates in accordance with ISO standards. The TÜV Rheinland Academy also provided advanced training to around 150,000 people through seminars.

Growth with sustainability services
TÜV Rheinland aspires to achieve growth in the coming years, particularly in the area of sustainability services, and to significantly increase its share of total revenues. In 2022, the company generated around EUR 529 million in revenues for sustainability services in the environmental, social, and governance (ESG) segment, which equates to roughly 21% of total revenues. The sustainability services currently offered include the measurement of greenhouse gas emissions, health protection, and testing for green hydrogen, photovoltaic systems, and batteries. The company has also established competence centers for hydrogen and for services related to the reduction of carbon emissions. "Our tests, certifications, academy, and consulting business allow us to play a significant part in ensuring that tangible changes for greater sustainability are possible and verifiable," emphasizes Michael Fübi.

TÜV Rheinland not only offers sustainability services but also supports them with its own sustainability targets. The company aims to achieve climate neutrality by 2028, with German group companies aiming for it as early as 2025. TÜV Rheinland also aims to achieve Gold status from EcoVadis, the world's leading provider of sustainability rankings. Since October 2021, TÜV Rheinland has achieved Gold status, putting it among the top 5% of rated companies. The group's commitment is global in scope. TÜV Rheinland's signing of the United Nations Global Compact to promote responsible business and sustainability in 2006 makes it the first testing company in the world to do so and is further evidence of its commitment to sustainability.

TÜV Rheinland is investing in the future
In the 2022 financial year, TÜV Rheinland significantly increased its investment volume, with a focus on future and digitalization topics such as electromobility and autonomous driving. For example, the company opened a large testing laboratory for electric vehicle drive batteries in Aachen, Germany, in June 2022, which will be further expanded at a total cost of EUR 24 million by the end of 2023. Another development is the Yangtze River Delta Operation Hub, where the company invested around EUR 10 million in the first phase in 2022. The laboratory center in Taicang, near Shanghai, China, will test photovoltaic modules, electrical and electronic products, and automotive electronics. Other investments in 2022 included the construction and modernization of vehicle inspection centers in Chile and the expansion of testing capacities for wireless technologies in Taiwan.

"TÜV Rheinland will continue its investment strategy in 2023. In February, we started construction of a testing and certification site for high-tech products in the Greater Boston area in the US," says Philipp Kortüm, Chief Financial Officer of TÜV Rheinland AG. The state-of-the-art facility is set to open at the end of 2023 and will be the largest of its kind in the northeastern United States.

TÜV Rheinland remains an attractive employer worldwide
In 2022, TÜV Rheinland employed an average of 20,870 full-time equivalents. This represents an increase of 3.1% on 2021. TÜV Rheinland's internationality is reflected by its employees: in 2022, 12,547 employees (60.1%) were based outside Germany. In Germany, TÜV Rheinland employed an average of 8,323 full-time equivalents in 2022. TÜV Rheinland is currently creating new jobs, both in Germany and in numerous regions worldwide. There are currently 600 vacancies in Germany alone, and 1,300 worldwide.

Performance in Germany and internationally
The German market accounted for 50.6% of TÜV Rheinland's total revenues in 2022, with the international regions contributing 49.4%. Revenues in Germany grew by EUR 58.3 million, totaling EUR 1.152 billion in 2022. Outside of Germany, revenues amounted to EUR 1.124 billion compared to EUR 997.5 million in 2021. All TÜV Rheinland regions recorded revenue growth in 2022, some with significant growth rates.

Outlook
TÜV Rheinland has set itself clear goals for the years ahead, which will allow it to continue to grow profitably through independent safety and quality inspections. These goals include sustainability services in particular, an area TÜV Rheinland believes will grow vastly in importance. In addition, TÜV Rheinland intends to continue investing heavily in the capabilities of its own employees and expand its workforce to cater to the growing global demand for testing services. Michael Fübi: "For us, the topics of safety, quality and sustainability represent a single entity. As one of the world's largest independent testing service providers, we see our role as supporting the transformation of the economy today for greater sustainability tomorrow."

About TÜV Rheinland
TÜV Rheinland stands for safety and quality in virtually all areas of business and life. The company has been operating for more than 150 years and ranks among the world's leading testing service providers. It has more than 20,000 employees in over 50 countries and generates annual revenues of around 2.3 billion euros. TÜV Rheinland's highly qualified experts test technical systems and products around the world, support innovations in technology and business, train people in numerous professions and certify management systems according to international standards. In doing so, the independent experts generate trust in products as well as processes across global value-adding chains and the flow of commodities. Since 2006, TÜV Rheinland has been a member of the United Nations Global Compact to promote sustainability and combat corruption. Website: www.tuv.com

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SOURCE TUV Rheinland