TÜV Rheinland Presents Record Earnings for Its 150th Anniversary

In the year that celebrates its 150th anniversary, the company reported a 2021 revenue of almost EUR 2.1 billion and a record profit of EUR 158 million with an EBIT margin of 7.5 percent.

LITTLETON, Mass., May 3, 2022 /PRNewswire/ -- In the year of its 150th anniversary, TÜV Rheinland is presenting a record-breaking balance sheet. The international testing service provider generated revenues of EUR 2.091 billion in 2021 (2020: EUR 1.952 billion). This corresponds to a year-on-year increase of 7% and is a new high. In the 2021 fiscal year, TÜV Rheinland posted the highest EBIT in its 150-year history of EUR 157.8 million. The EBIT for 2021 was therefore much higher than in the previous year. In 2020 – due to non-recurring effects – TÜV Rheinland posted EBIT of EUR -23.6 million. The company's EBIT for 2021 was also a considerable EUR 22.2 million higher than in 2019 (EUR 135.6 million). The EBIT margin reached 7.5% after -1.2% in 2020 and 6.5% in 2019, the last pre-pandemic year.

"Our employees around the world were fully committed to our customers in 2021 – despite the continuing challenges of the coronavirus pandemic. Thanks to these efforts and successful measures to increase efficiency, we can be very happy with our performance in our anniversary year. The positive result gives us additional leeway to invest in our future and further growth," says Dr. Michael Fübi, CEO of TÜV Rheinland AG.

150 years of TÜV Rheinland
With regard to the company's anniversary and TÜV Rheinland's role in overcoming the imminent, global challenges, Dr. Fübi continues: "We are looking ahead. For 150 years, we have seen ourselves as a partner for new technologies – yesterday it was steam boilers, today it is renewable energy, tomorrow it will be artificial intelligence. We use safety to make such innovations a success, in line with our aim of making the future a little safer. We are paying particular attention to services for a more sustainable economy. We thus intend to continue growing profitably."

Focus on sustainability
In the future, TÜV Rheinland will amplify its contribution to sustainable development as defined by the United Nations' Sustainable Development Goals and to the fight against the climate crisis. For the testing company, this entails both improving customers' sustainability with its own services and how it performs its own services. "It is absolutely clear that TÜV Rheinland's development hinges on the environment and society in which we operate. This means we have an ecological and social responsibility that we live up to – in the past, in the present, and in the future," says Michael Fübi. 

The journey to a more sustainable future also provides TÜV Rheinland with good economic prospects. The testing company has recently bundled its wide range of sustainability services in almost all service areas worldwide. At the same time, the experts are working to implement new, innovative testing services for future areas such as carbon-neutral business, energy generation without fossil fuels, and social standards in global supply and value chains. A wealth of information and services for more sustainability are now available from TÜV Rheinland here.

TÜV Rheinland as partner for new technologies
TÜV Rheinland has seen itself as a partner for new technologies since it was founded 150 years ago. A current example is the rapidly growing electromobility segment. Since last year, TÜV Rheinland has been building a large testing laboratory for drive batteries in Aachen, which will open in June 2022. Most recently, TÜV Rheinland and its partner TWAICE founded Battery Quick Check GmbH in March 2022. The new company aims to launch a service to evaluate drive batteries of used electric vehicles on the market from fall 2022. In addition, the company's experts provide support for the type approval of newly developed vehicles, particularly with regard to increasingly automated driving. For example, TÜV Rheinland assisted the homologation of the world's first driver assist system for highly automated driving (SAE Level 3) for use on the road, namely Drive Pilot in the S-Class and EQS from Mercedes-Benz.

Another example is hydrogen, which can provide a solution to the problem of storing renewable energy and offers an opportunity to combine previously separate areas such as electricity, heating and mobility. In 2021, TÜV Rheinland established a global hydrogen competence center, in which it bundles its many services for the safe production, storage, transport and use of hydrogen as an energy carrier worldwide. A hydrogen testing laboratory recently opened in Cologne underscores TÜV Rheinland's aim to help shape the transition to renewable energy.

Financial position and capital expenditure
TÜV Rheinland's equity increased by EUR 151.2 million from EUR 285 million to EUR 436.2 million in 2021. Net cash from operating activities totaled EUR 205.9 million in the 2021 fiscal year (2020: EUR 223.2 million).

Capital expenditure amounted to EUR 57.7 million in 2021 and was thus somewhat lower than in the previous year. These investments focused on various software and digitization projects as well as on the expansion of testing capacity and the creation, expansion and modernization of testing laboratories. TÜV Rheinland invested a total of EUR 5 million in a new testing laboratory in Budapest. In addition, EUR 13.8 million was spent on testing equipment and facilities for the Products business stream. Investment continued in one of Europe's largest and most state-of-the-art test centers for drive batteries, which TÜV Rheinland is currently building in Aachen, with EUR 1.2 million spent in 2021. The Mobility business stream also invested EUR 1.4 million in vehicle inspection centers in Chile.

Find more information about TÜV Rheinland's annual results here.

About TÜV Rheinland
150 years of safety: Since 1872, TÜV Rheinland's mission has been to make technology safe for people and the environment. From the steam engine to digitalization, the erstwhile "Verein zur Überwachung der Dampfkessel in den Kreisen Elberfeld und Barmen" (Association for the Inspection of Steam Boilers in the Districts of Elberfeld and Barmen) has evolved into a global testing service provider ensuring safety and quality in virtually all areas of business and life. This responsibility is now shared by more than 20,000 employees, who generate annual revenues of around EUR 2.1 billion. Around the globe, experts from TÜV Rheinland test technical systems and products, support innovations in technology and industry, train personnel in a wide range of professions, and certify management systems according to international standards. With safety and sustainability, TÜV Rheinland is also shaping the future. Since 2006, TÜV Rheinland has therefore 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