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Business Development 2018

Business Development 2018

tesa SE posts disproportionately high growth in 2018



Positive development in all regions

  • Sales up 6.8%, EBIT margin at 15.7%
  • Double-digit growth in the business with the electronics industry
  • Automotive sector once again provides strong impetus
  • Further acquisitions successfully concluded
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In 2018, the tesa Group achieved sales of 1,342.8 million euros at current exchange rates, equivalent to another significant increase, this time of 6.8% year over year. Adjusted for exchange rate effects and special factors, sales also rose by 6.8%. All regions and business fields contributed to this pleasing development. We once again achieved especially strong growth in our Asia, Americas, and Eastern Europe business regions, but the countries of Western Europe also saw positive development in terms of sales. The operating result rose to 210.3 million euros (up 1.3%).

Organic growth in our target markets remains the mainstay of our successful strategy. To achieve this, it is necessary to expand our portfolio of innovations on an ongoing basis and introduce the resulting product solutions to our customers in an effective way. Various measures initiated in 2018 will further strengthen the company in this rapidly changing market environment. The tesa innovation initiative, for example, aims to bring even more impetus into the company from outside, whether from our suppliers, technical partners, or customers. At the same time, we are also trying out new ways of working together internally across all areas and regions. Together, these two factors are helping to further develop our culture of innovation and increase its dynamism. The Digital Development Office, which was established in mid-2017, has already made great strides in bringing together company-wide digital activities as part of a single overarching strategy, prioritizing them and swiftly driving key projects forward. In China this past fall, for example, we opened tesa’s first own online shop on Alibaba’s 1688.com platform, one of the most widely used e-commerce platforms across China.

Beyond organic growth, we also aim to continue bringing growth and technological expertise into the tesa Group through further acquisitions in the future. tesa takes a systematic approach to seeking out, identifying, and acquiring suitable target companies. This past fiscal year, the company successfully concluded not just one or two, but three acquisitions. In this way, the Twinlock division of Polymount, a company situated in the Netherlands, Londonbased FormFormForm Ltd., and Functional Coatings, a company located in the northeastern United States, all became part of the tesa family. All of these new additions will strengthen our market position among industrial and commercial customers in the areas of print and paper, building industries, and the consumer business, thanks to their forward-looking roducts and technologies, new customer segments – and most of all, their highly qualified, committed, and dedicated employees.

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tesa Business Development 2018

Sales

Operating result (EBIT) 1 without special factors

EBIT margin 1 without special factors

Sales by business unit

Direct Industries

Trade Markets

Sales by region

Europe

America

Africa / Asia / Australia

2017 in € million

1,257.8

207.5

16.5 %

725.2

526.7

707.0

190.6

360.2

2018 in € million

1,342.8

210.2

15.7 %

798.3

539.0

731.5

216.4

394.9

Change in percent

6.8

1.3

-0.8

10.1

2.3

3.5

13.5

9.6

Adjusted for exchange rate effects in percent

6.8

9.1

3.8

3.2

9.7

12.3