Press release

Focus on digital security begins to bear fruit:

DEKRA with 11 percent jump in revenue•

Expert organization increases revenue to more than 3.5 billion euros in 2021•

Adjusted EBIT of 226 million euros, 15 percent up on previous year•

Motor-vehicle inspection business: Entry into three new markets consolidates
global market leadership•

E-mobility: Patented rapid test shows state of health of traction battery•

Sustainability services offer huge market potential•

DEKRA anticipates expansion in 2022 despite difficult conditions

Despite the massive economic impact of the war in Ukraine and the coronavirus pandemic, DEKRA expects growth of around five percent in the current
fiscal year. The number of employees is expected to increase further by over
1,000 (2021: 47,770, 2020: 43,990). In the second year of the pandemic, theexpert organization proved its resilience: Revenue grew by 10.9 percent tomore than 3.5 billion euros in 2021. At 226.0 million euros, earnings before
interest and taxes (adjusted EBIT) were approximately equal to the pre-coronavirus figure in 2019. Net profit increased by around 50 percent, or 47.6
million euros, to 141.5 million euros in 2021 (previous year: 93.9 millioneuros) – and was thus more than 20 million euros higher than in the strong
year 2019. Stan Zurkiewicz, the new Chairman of the Management Board,
attributes these positive developments in a volatile environment mainly to
the Company’s strong market position, customer centricity, dedication ofemployees and accelerating digitalization. “We are closely in touch with ourcustomers’ needs and are concentrating on five high-growth focus areas
where we are developing the digital services of the future,” said the 42-yearold, who took on the baton from long-serving CEO Stefan Kölbl in April. In
the context of digitalization, DEKRA is benefiting from completely newsafety requirements that must be met, for example in relation to issues ofcyber security and connected mobility. With capital expenditure of morethan 140 million euros in 2021, DEKRA has laid the foundations for further
growth around digitalization and driven forward internationalization – forexample in the Asia-Pacific (APAC) region.
The new DEKRA CEO made it clear to journalists in Stuttgart that safety requirements are evolving rapidly due to increasing product and system connectivity andclimate change. While DEKRA will keep all aspects of safety for people in focus,
at the same time digital security of personal data and networked systems is alsohigh on the agenda. “We have refined our strategic positioning and added digital
DateContact
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Stuttgart, April 26, 2022 / No. 034-A
Dr. Torsten Knödler
+49.711.7861-2075+49.711.7861-742075
torsten.knoedler@dekra.com
1DEKRA e.V.
Corporate Communications
Handwerkstrasse 1570565 Stuttgart, Germany
https://www.dekra.com/en/newsroom

security and sustainability to our Strategy 2025 strategy,” said Stan Zurkiewicz.
“Both are now part of our DNA.” This is also reflected in DEKRA’s strategic goalof becoming carbon neutral by 2025.
The further development of Strategy 2025 involved setting a strategic course lastyear. In the future, DEKRA will concentrate on five focus areas that represent significant fields of growth: artificial intelligence & data analytics, future vehicles andmobility, remote services, information & cyber security, and sustainability services.
DEKRA’s expanded understanding of safety is reflected in these focus areas. Justa short time after the launch of its Artificial Intelligence and Cyber Security hubs,
the DEKRA DIGITAL innovation unit is already generating double-digit growth
rates with a total of more than 100 employees. “We will exploit all growth opportunities with new digital services and a strong customer focus in particular,” explained the new DEKRA CEO. “This will make us the global partner for a safe,secure and sustainable world by the 100th anniversary of our founding in 2025.”
Position of strength“We are pursuing our goals from a position of strength. In 2021, for example, equity rose to 33.5 percent, or almost one billion euros,” said CFO Wolfgang Linsenmaier. Growth in the Asia-Pacific (APAC) region was particularly strong, withrevenue up 17.8 percent to 221.2 million euros. The Germany region also madesignificant gains, posting an increase of 11.2 percent to 2,145.7 million euros.
“Germany is and remains the largest and most important market for DEKRA,” said
CEO Stan Zurkiewicz.
The positive development in the past fiscal year is also reflected in the strategic
business areas. Following the crisis in the wake of the coronavirus pandemic,Temp Work saw the largest percentage jump in its revenue by 43.2 percent to438.5 million euros. Vehicle Inspection, among others, also proved again to be
extremely resilient: Sales in the business area grew by 7.6 percent to 1,217.7 million euros and set a new record with 28 million inspections in 23 countries. Zurkiewicz: “We are already the global market leader, but we are systematically expanding our position.” The Company aims to exceed the 30 million inspections mark by2025, its centenary year. In 2021 alone, DEKRA introduced its emissions and vehicle inspections in three additional countries: Chile, Mexico and Finland.
Secure connectivity“Success and acceptance of digitalization substantially hinge on secure connectivity,” remarked Ulrike Hetzel, Chief Technology Officer (CTO) on DEKRA’s Management Board. The expert organization focuses on the three pillars of cyber security when developing appropriate solutions: people, products, and processes.
This is how DEKRA helps its customers become more robust with regard to internal and external attacks. DEKRA ensures a secure Internet of Things (IoT), forexample, with tests and certificates in accordance with the new EN 303 645

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European standard – the basis for cyber security in the smart home. Last year,DEKRA awarded the first EN 303 645 certificate to a household appliance manufacturer in China. DEKRA expects the market for cyber security solutions to growby around 40 percent annually until 2025.
In the emerging field of automotive cyber security, the Federal Motor Transport
Authority granted DEKRA the status of type tester for new international regulations
on cyber security and software updates in 2021. Under UNECE R155 and R156
regulations – a gold standard for the automotive industry – manufacturers must
demonstrate appropriate management systems throughout the life of a vehicle
and have them audited every three years. The DEKRA Technology Center in
Klettwitz plays an important role in this, and it is here that DEKRA plans to expand
test tracks for automated and connected driving in 2022, with capital expenditurein the tens of millions of Euros. Many leading vehicle manufacturers rely on
DEKRA’s cyber security services. DEKRA expects strong growth in this businessarea in the next few years, with revenue projected to be in the upper double-digit
million range by 2025.
With regard to industrial cyber security, e.g. in the field of critical infrastructure, theapproval according to the industrial cyber security standard IEC 62443 in thegrowth market China was an important success. In the industrial environment,
safety issues arise around the control and digital monitoring of machines andplants. The importance of online monitoring services, remote assisted inspections
and remote inspections with remote-controlled robots and drones is growing
worldwide. Remote inspections are important, for example, in dangerous or hardto-reach places in the production process. In 2021, DEKRA received an orderworth millions of euros from one of the world's largest chemical companies forremote inspections with robots.
Helping shape the AI ecosystem
Trust in safety plays a crucial role when it comes to artificial intelligence (AI). “AIis evolving rapidly and our goal is to help shape the AI ecosystem of the future asa neutral third party,” explained Ulrike Hetzel. DEKRA is involved in the implementation of statutory regulations in technical standards and norms, for example. In
2021, DEKRA became a shareholder of Spearhead. This Swiss company uses AI
to help motor insurers and fleet operators digitalize the processes surrounding therecording and settlement of claims. DEKRA expects the market for digital claims
processing to grow rapidly and that corresponding solutions will be used in wellover 50 percent of claims as early as 2025.
Expansion of the portfolio of sustainability services
In the growth area of sustainability, DEKRA sees potential in holistic solutions for
managing the energy transition, for environmental, social and governance (ESG)
standards, and for the circular economy. These include, for example, services forPage 3analyzing and reducing the carbon footprint of companies or their products.
Lenovo’s CO2 Offset Service for customers was verified by DEKRA in 2021, since
when the Company has won further carbon footprint projects. The markets forsustainability audits, sustainability management systems and product testing inline with the latest environmental standards are similarly diverse.
DEKRA has further strengthened its market position in the field of e-mobility witha range of new services. The rapid battery test, for example, which has been patented and validated by RWTH Aachen University and in tests by vehicle manufacturers, allows the state of health of traction batteries to be recorded quickly andreliably. The solution enables DEKRA to answer the key questions about usedelectric vehicles: What is the battery’s state of health and how much residual capacity does it retain? This question is very important in residual value managementof New Energy Vehicles (NEVs). The service is initially aimed at major customers
such as leasing companies that remarket electric vehicle returns or car dealershipchains that trade in used e-vehicles.
DEKRA achieved another success in California, the leading global market for themobility of tomorrow, when it was contracted by the California Energy Commission
to set up a Vehicle-Grid Innovation Laboratory. “The lab will improve the interoperability of the charging infrastructure and help introduce safe vehicle-to-grid solutions,” reported CTO Ulrike Hetzel. The San Francisco Bay Area lab will be akind of twin of DEKRA’s state-of-the-art lab in Arnhem, Netherlands, and will start
operations in the summer of 2022.
Besides e-mobility, DEKRA is an important player in the testing of solar industry
products, particularly in China. As a member of Hydrogen Europe, the expert organization supports the safe use of climate-friendly hydrogen technologies. They
also promote sustainable waste management by awarding the new Zero Wastecertification seal. Given its excellent market position and the increasingly intensive
measures worldwide for sustainable development of products, industries, communities and other areas, DEKRA expects strong demand for sustainability services
with annual double-digit growth rates.
DEKRA is also successfully pursuing its own sustainability strategy. In April 2022,
for example, EcoVadis – the leading international standard for sustainability inglobal value(-added) chains – awarded the TIC (testing, inspection, certification)company Platinum for the second time in a row. As a result, the world's largest
non-listed expert organization continues to secure a place among the top one percent of comparable assessed companies. EcoVadis assesses performance in environment, labor and human rights, ethics and sustainable procurement.

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Outlook
DEKRA has made a good start to 2022, with revenue for the first quarter almost
ten percent up on last year. “The devastating war in Ukraine will make it difficult
for us to maintain this momentum,” Stan Zurkiewicz said. According to the DEKRA
CEO, growth in Germany, Europe and the world will shrink as many industries
face disruptions to their supply chains and a shortage of raw materials as well asintermediate products. He also anticipates that high energy prices will continue tofuel inflation. Despite these uncertainties, DEKRA is planning ambitious growth ofaround five percent for 2022. DEKRA expects to see increasing investment incyber security, for example in the automotive industry.

About DEKRA
DEKRA has been active in the field of safety for almost 100 years. Founded in 1925 inBerlin as Deutscher Kraftfahrzeug-Überwachungs-Verein e.V., it is today one of theworld’s leading expert organizations. DEKRA SE is a subsidiary of DEKRA e.V. and manages the Group’s operating business. In 2021, DEKRA generated sales totaling more than
EUR 3.5 billion. The company currently employs almost 48,000 people in approximately
60 countries on all continents. With qualified and independent expert services, they work
for safety on the road, at work and at home. These services range from vehicle inspectionand expert appraisals to claims services, industrial and building inspections, safety consultancy, testing and certification of products and systems, as well as training courses andtemporary work. The vision for the company’s 100th birthday in 2025 is that DEKRA willbe the global partner for a safe, secure and sustainable world. With a platinum rating from
EcoVadis, DEKRA is now in the top one percent of sustainable businesses ranked.
.

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