G+D Reports One of Best Years in History

Giesecke+Devrient has described 2021 in financial terms as one of the most successful in its history. Sales of €2.38 billion were a 2.8% improvement on the previous year and almost back at the pre-pandemic levels of 2019. Earnings before interest and tax (EBIT) increased by just under 27% to €166.9 million – the best result in the company’s history to date. Net income doubled to €85.2 million.

Capital expenditure for the year was 10.2% lower at €86.5 million, but expenditure on research and development increased by 17.2% to €118.4 million, demonstrating – said G+D – continued commitment to driving the company’s transformation and expanding the digital business.

The company is also stepping up its efforts to implement a sustainable, climate-friendly business model and act responsibly towards the environment and wider society.

The Currency Technology division (features, paper, print and cash handling/processing) achieved sales of just over €1 billion, 1.74% greater than in 2020. Sales for Mobile Security (solutions for secure and convenient digital mobility) increased by 3.2% to €811 million. For Veridos, the identity management joint venture with Bundesdruckerei, sales fell by 13.2% to €198 million, but increased by 18.2% for secunet (digital infrastructure) to €338 million.

In an interview to coincide with the results announcement, Ralf Wintergerst was asked about G+D's performance since he became CEO in 2016. He emphasised that, although he was very pleased with the company’s growth and performance over the last six years, leading to it being in a very robust position at the end of fiscal 2021, the most important thing for him was the significant amount of money that had been, and is being, invested in the future of the company – in new business, new products, and in significant research and development activity. The company has also carried out nine mergers and acquisitions since 2016.

He was also asked about the company’s digital transformation agenda and whether this was a conflict of interest with its banknote activities, and in particular about the company’s involvement in the development of CBDCs (central bank digital currencies). He replied that ‘complementing and expanding our core business with innovations is central to the company’s strategy… The digital world is getting bigger and bigger every day and G+D is actively helping to make this happen.’ Regarding CBDCs, these were the central banks’ response to the proliferation of cryptocurrencies – they were innovative solutions around state-issued and state-managed currencies, he said. ‘They offer all the advantages of cash but work as a purely digital form of payment on a smartphone or payment card. Digital money also promotes financial inclusion. All these trends are set to continue, and we expect central banks will take the lead in driving them forward.’ For the 2022 financial year, G+D expects sales to remain at the high level of the previous year, although external factors are likely to have a significant influence. They include geopolitical uncertainty (in particular the war in Ukraine), the ongoing pandemic, continuing travel restrictions, global supply chain difficulties and a shortage of microchips.