Strategy 2020 continues to determine the course

We want to constantly increase the value of our group. To this end, we are pursuing a clearly defined and time-proven strategy for the period up to 2020. At the heart of the strategy are the two dimensions of action “growth” and “efficiency,” for each of which we have defined several underlying drivers. Through specific measures in the operating units, we are leveraging the potential step by step.

The market for TIC services offers many opportunities to continue to grow and increase our revenue volume organically. In addition, we play an active part in shaping the process of consolidation that has been ongoing in the market for a number of years and are enhancing our portfolio by acquiring companies in the sectors and regions of relevance for us. The most recent example is the full acquisition of the Spanish ATISAE Group, with which we were able to substantially strengthen our position in Western Europe during the fiscal year. Being the largest in our company history, this acquisition underscores our claim to be one of the world's leading providers in the market for technical services. We intend to generate at least 50% of our revenue outside ­Germany by 2020, as these regions offer attractive growth opportunities.

In 2016, we further adjusted the strategic priorities of our segments and adapted them to the current market situation. In the INDUSTRY Segment, the focus remains on expanding business internationally, with particular emphasis on the Asian markets. At the same time, we also want to continue to grow in our domestic market, Germany.

In the MOBILITY Segment, the focus is still on the FIT17 program, which is aimed at more efficient workflows and higher service quality, especially in the vehicle roadworthiness test. It is also necessary to successfully integrate the MOBILITY business of the ATISAE Group and to prepare for new challenges, such as those in the area of autonomous driving.

The focus of the CERTIFICATION Segment is the continued internationalization of the business with the aim of developing economies of scale and achieving the best possible utilization of our test laboratories all over the world. At the same time, new test and certification services are being developed for smart technologies, including the areas of wearables, digital payment and wireless.

By providing greater proximity to the customers across all business segments, we want to evolve from being a certifier to becoming a business partner who will advise its customers in all aspects of safety, quality and risk mitigation in the development phase of new products. The further strengthening of our business with major customers shows that we are on the right path with this solution-oriented approach.

Last but not least, we are continuing to expand our portfolio with new, innovative services and business models, especially against the backdrop of ever-increasing digitization. This offers us attractive opportunities, especially if we are able to combine our detailed industry expertise with know-how in the areas of cyber security and data services. In light of this, we already defined our digital strategy in the prior year, linking it closely to our group-wide innovation process. In the fiscal year, we rooted these activities firmly within the company organization and created the “Digital Service” division, headed up by the Chief Digital Officer who reports directly to the Board of Management and is responsible for the digital transformation of TÜV SÜD. At the same time, we are pursuing a specific digital agenda in each business segment in order to exploit the opportunities that arise as quickly and as close to the business as possible.

We want to actively promote developments in this phase of technical progress, and to shape them in a way that delivers certainty and adds value for our customers – as we have done since our formation 150 years ago.