FINANCIAL REPORT 2020

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CONTENTS﻿AT A GLANCECONTENTS

On the road, at work, and at home, millions of people around theworld rely on DEKRA’s safety expertise. This leading non-listed expert
organization is fulfilling its corporate mission of improving safetywith impartiality and independence. With a workforce of nearly 44,000,
DEKRA is synonymous with innovative services in the safety segment
in more than 60 countries across five continents. The vision to berealized by our centenary in 2025 is as follows: DEKRA will be the global
partner for a safe world.

02

Foreword

G R O UP M A N AG EMEN T REP O R T
03

C O NS O L IDAT ED FIN A N C I A L S TAT EMEN T S

Corporate information

29	
Consolidated statement ofcomprehensive income

03		 Group business model05		 Objectives and strategies

30	Consolidated statement offinancial position

05		 Research and development
07		 Integrity and sustainability

32	Consolidated statement ofchanges in equity

08		 E nvironmental protection andsustainability

DEKRA’s comprehensive range of services is marketed across eightregions worldwide and is summarized in the eight Service Divisions:
Vehicle Inspection, Claims & Expertise, Product Testing, Industrial
Inspection, Consulting, Audits, Training, and Temp Work.

34	Consolidated statement ofcash flows

09		 Personnel report
10

Report on economic position36	
Notes to the consolidated
financial statements

10		 G eneral economic andindustry-specific conditions

100

11		 Business performance15		 Financial position and performance

The portfolio ranges from vehicle inspections and expertise in claims
services, industrial and construction inspections, security consulting,as well as the testing and certification of products and systems, totraining courses and temporary work.

20

Risk, opportunities, and forecast report20		 Risk report
23		 Opportunities report25 		

Forecast report

K E Y DATA D E K R A S E
2018

2019

2020

in million EUR

3,340.5

3,409.0

3,188.2

in %

39.3

39.4

39.5

in million EUR

242.3

227.1

195.9

in %

7.3

6.7

6.1

in million EUR

227.9

210.2

183.8

Total assets

in million EUR

2,267.0

2,755.4

2,739.0

Equityin million EUR

748.8

796.3

808.5

in %

33.0

28.9

29.5

45,64744,64843,990

Revenue and income

Total revenue
Share of international revenue
Adjusted EBIT
Adjusted EBIT margin
Adjusted EBTStatement of financial position

Equity ratio
Employees

Number as of Dec. 31

Independent auditor’s report104	
Report by the Chairman of
the Supervisory Board

D E K R A Financial Report 2020

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FOREWORDGROUP MANAGEMENT REPORT﻿Corporate information
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FOREWORD FROM THE
CHAIRMAN OF THE MANAGEMENT BOARD

Dear readers,
2020 will go down in history as the year in which a virus
tore through economies and societies all around the world. The
COVID‑19 pandemic has also put a damper on DEKRA’s many
years of growth, with our revenue seeing a six-percent decrease.

S T E FA N KÖ L B L
Chairman of the Management Board
DEKRA e.V. and DEKRA SE

Nevertheless, DEKRA’s performance was above average during
the year of crisis, advancing its position as a global safety part‑ner. Our organizational structure, which now spans six regions
and eight Service Divisions, contributed to this success. We were
therefore able to further improve our innovative capacity andcustomer focus.

As a result, 2020 was not a lost year. Instead, we did everything
we could to ensure that we will be able to return to our growth trajectory once the pan‑demic is over. A significant factor in this will be consistently gearing our business toward
the opportunities presented by digitalization. In the future, we aim to expand our status
as a recognized partner for the testing, inspection and certification of intelligent andconnected products. We have invested more than 90 million euros in our future, creating
several hundred (413) new jobs even in a time of crisis (excluding the Temp Work Service
Division).
The resilience and forward thinking we demonstrated in 2020 encourages us in therealization of our “Vision 2025.” By 2025, when DEKRA will celebrate the 100th anniversaryof its founding, we will have digitalized our entire service portfolio and we will be theglobal partner for a safe world. When it comes to technical and organizational safety inthe three areas of life – on the road, at work, and at home – people in the digital age
can rely on DEKRA as the world’s leading non-listed expert organization in the TIC (testing,inspection, certification) industry.
Kind regards,

GROUP MANAGEMENT REPORT
OF DEKRA SE, STUTTGART
FOR THE FISCAL YEAR 2020
C O RP O R AT E INF O RM AT I O N

Systematic expansion of the rangeof products and services

GROUP BUSINESS MODELDEKRA ensures safety

In its eight Service Divisions, DEKRA focuses on the ongoingdevelopment and optimization of services in order to be able tooffer customers an even better service in the future. As part of
the trend toward digitalization and increased networking, theService Divisions develop the safety solutions of tomorrow andunderscore DEKRA’s role as a pioneer of safety. DEKRA’s service portfolio is bundled into the following Service Divisions:

For over 90 years now, DEKRA has strived to ensure people’ssafety in all of life’s situations. What started out in 1925 withthe technical monitoring of motor vehicles, today comprises awide range of services for testing, inspecting and certifying
products, processes, and plants, as well as for training and certifying individuals. DEKRA is the world’s largest non-listed
expert organization in the TIC industry (testing, inspection,
certification) in terms of revenue, and benefits from the lasting
and global trend toward more safety. The Company’s mission
pursuant to its articles of incorporation is just as valid today as
when it first started out.
In 2020, DEKRA employed around 44,000 people in some
60 countries on five continents. The Company carried out
around 27 million vehicle inspections globally. Since 2019, thecomprehensive services it offers have been bundled into eight
Service Divisions. The global business is managed by DEKRA SE
based in Stuttgart, and is divided into eight regions.

Vehicle Inspection

This Service Division comprises periodic vehicle inspections,non-periodic technical inspections and periodic emission tests
for all kinds of vehicles. With an eye on the future of mobility,
DEKRA provides reliable technical inspections of increasingly
networked and automated vehicles in this core area of expertise.
Claims & Expertise

The services offered by the Claims & Expertise Service Division
include claims settlements for any type of claim, vehicle valuation and administration services, and expertise – both nationally and internationally.

Represented in every region of the world

Of the eight regions, the Germany region is the biggest market
with revenue of 1,929.6 million euros, followed by South-West
Europe (which also includes the Company’s second domestic
market of France) with 497.9 million euros. DEKRA generated
a business volume of 332.6 million euros in the North-West
Europe region and 146.9 million euros in Central East Europe& Middle East.
Alongside Europe, DEKRA’s focus markets include theNorth America and East & South Asia regions, where revenue
amounting to 83.8 million euros (North America) and
113.3 million euros (East & South Asia) was generated. DEKRA
generated 9.6 million euros in South America and 74.5 million
euros in Southern Africa & Oceania.

Product Testing

The testing and certification of consumer, industrial, automotive, IT, communications and medical products are part of the
Product Testing Service Division’s expertise. DEKRA combines
security and connectivity tests in order to work toward a futurein which products work perfectly and communicate clearly witheach other.

STEFAN KÖLBL
Chairman of the Board of Management
DEKRA e.V. and DEKRA SE

D E K R A Financial Report 2020

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D E K R A Financial Report 2020

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DEKRA provides comprehensive building, facility, machineryand infrastructure inspection services to industry customers
around the world, including a wide range of materials tests.

offers first-party (internal audits), second-party (auditing suppliers in accordance with their own standards), and third-party
audits (audits in accordance with internationally recognized
standards, with corresponding authorization).

Consulting

Training

DEKRA advises its customers on the safety-related, practicaltransformation of procedures and activities in a dynamic digital age, at the workplace and in operational practice. The experts
in the service area Consulting follow a holistic, behavior-based
approach based on scientific findings relating to the fundamental principles of human behavior.

The Training Service Division offers a broad range of solutions
and services in the fields of training, specialist education andplacement from abroad, languages, integration, and learning,
using modern learning management systems (LMS) and digitaltechnologies. DEKRA has operated as a training partner forindustry and government for more than 40 years.

AuditsTemp Work

Independent evaluations and certifications of management systems in accordance with national and international standards
are the core expertise of the Audits Service Division. DEKRA
holds a range of accreditations for system certifications, andEmployees in the Temp Work Service Division are characterized
by their extensive know-how in the fields of HR, solution, eventand logistics management. DEKRA is one of Germany’s six
largest HR service providers in terms of revenue.

REGION PERSPECTIVESERVICE PERSPECTIVE

Industrial Inspection

Germany
Central East Europe & Middle East

Temp Work

Training

D E K R A Financial Report 2020

AuditsSouthern Africa & Oceania

Consulting

East & South Asia

Industrial Inspection

South America

Product Testing

North America

Claims & ExpertiseSouth-West Europe

Vehicle Inspection

North-West Europe

OBJECTIVES AND STRATEGIES
Vision 2025: we will be theglobal partner for a safe world

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RESEARCH AND DEVELOPMENT

The strategy and operational management of DEKRA are
guided by the principle of stable and healthy growth. Professional expertise, innovative power and customer proximity
therefore remain our primary tasks. Through its strategic“Vision 2025” program, launched in its 90th anniversary year
in 2015, with its focus on the three areas of life – on the road, atwork and at home –, DEKRA has mapped its course for the
coming years. In this context, DEKRA has set itself the goal ofbeing the global partner for a safe world in its centenary year
2025. In fiscal year 2020, DEKRA once again demonstrated its
full commitment to achieving this long-term objective.
The digital transformation – accelerated by the COVID‑19
pandemic – has played an important role in this regard. DEKRA
is already a globally recognized partner for the testing, certification and inspection of intelligent and networked products. Nonetheless, we are constantly working to enhance our digital competency based on a comprehensive digital strategy. This starts
internally with modern IT and new ways of working, includes
digital interaction with customers, and extends through to new
and data-driven services. Consequently, DEKRA will digitalize
its processes as far as possible, further expand its technical expertise and work on shaping digitalization in its markets throughinnovation and technology partnerships, and build up new business lines. The digital strategy will be rolled out Group-wide from2021 and implemented by 2025.
The digital strategy fits into our Group Strategy 2020, which
is based on six pillars: “Thought Leadership”, “Strategic Marketing & Sales”, “Innovation Strategy & Process”, “i3X” (formerly“GLOBEX”), “Change Management Vision 2025” and “Corporate
Culture & Communication.”
Effective from January 1, 2021, DEKRA reduced the number of regions it has from eight to six. The regions East & South
Asia and Southern Africa & Oceania were combined into a new
APAC region. In addition, the regions North America and SouthAmerica were merged into an Americas region. Consequently,
DEKRA is now managed in six instead of eight regions. This ispart of the rigorous implementation of Vision 2025.

DEKRA has been an independent expert organization since
1925. The Company has been working in the area of road safety
for more than 90 years – with periodical vehicle inspections,with the deployment of accident analysts and accident researchers, with crash tests, public campaigns and cooperation innational and international bodies. DEKRA’s accident investigation function, for example, has been supporting automotive
manufacturers and system suppliers with crash tests and accident analyses for more than 40 years now. The function’s ongoing mandate is to analyze real accidents on the roads in orderto draw conclusions for road traffic safety. Furthermore,
DEKRA uses its status as an international expert organization
to inform the public in workshops and publications about relevant technical requirements for greater road safety.
The journey to Vision Zero

The DEKRA VSR [“Verkehrssicherheitsreport”: Road Safety
Report] was presented for the 13th time in fiscal year 2020. The
DEKRA VSR, published annually since 2008, provides up-todate information and advice on the further development of roadsafety for decision-makers in politics, associations, and companies. Under the title “Mobilität auf zwei Rädern” (Mobility on
two wheels), DEKRA VSR 2020 tackles the issue of how Vision
Zero can also be achieved for vehicles on two wheels, for example with motorbikes and (e-)bikes.
The DEKRA VSR is complemented by the DEKRA online
road safety portal: www.dekra-roadsafety.com. There additional
content is available to supplement the printed report, such as videos or interactive graphics. The portal also covers many othertopics relating to road safety, including vehicle technology, infrastructure, and the human factor of being distracted by smartphones when driving.
DEKRA’s commitment to traffic safety also includes the“DEKRA Vision Zero Award.” Since 2016, the award has beenpresented to a European city that has not registered any roadtraffic fatalities for several years in a row. The northern­Spanish city of Siero was recognized in 2020 for eleven successive years without a single fatal accident in its inner-citytransport network.

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The future of mobility

DEKRA has been accompanying the technological developments in the automotive sector for many years. The development towards the mobility of the future represents a special
challenge for all players in the automotive industry. That is why
DEKRA has a team to develop services for connected cars, pooling the whole range of knowledge gained from laboratory tests
through material testing to homologation and type approval,
across organizational and national borders.
Following the acquisition of the Lausitzring in Klettwitz,
Germany, at the end of 2017, DEKRA combined the racetrackwith the adjoining DEKRA Technology Center in 2018. Here,on 540 hectares of land, Europe’s largest manufacturer-independent testing and inspection center to date for automated andconnected driving has been built. In addition to testing components in accordance with the WLAN-based G5 standard, in the
future it will also be possible to test a wide range of scenarios
for networked communication between vehicles and with theirenvironment using the 5G mobile communications standard.
Together with other DEKRA facilities in Spain and China,
the Lausitzring and the facility in Klettwitz also form part of ahighly effective international testing network.
For example, in Málaga, Spain, the current focus is on the
secure connectivity and electromagnetic compatibility of cell
phones, smart home products, and Industry 4.0 applications aswell as a test area for connected driving. The focus there is on
product testing, the development of early-stage test procedures
and the testing of V2X (vehicle-to-everything) technologies. In
the reporting year, DEKRA set up a “Big Data Hub” in Málaga,
where experts deal with data analysis and software development.
In China, DEKRA strengthened its competency in thearea of automated and connected driving in 2020 by foundinga joint venture. With the joint venture in the Zhejiang province,
south of Shanghai, DEKRA has successfully entered this growtharea in the largest automotive market in the world.
DEKRA is also shaping the mobility of the future throughits involvement in the research project “RealLabHH.”

The project in Hamburg will investigate the digital mobility of
tomorrow in everyday life until the end of 2021. The aim is tofind out which combinations of which mobility solutions workin practice. DEKRA is a partner in this project. The experts
from the DEKRA Technology Center are putting their skills togood use in particular for issues relating to the authorization
process for automated shuttles in public transport. The digital
infrastructure that is being tested in real-life operation in the
project includes micro-depots to reduce logistics traffic, automated driving, on-demand shuttles and an app that links
together various forms of mobility. The findings will be presented in October 2021 at the ITS World Congress in Hamburg.
Data plays a crucial role in the development of self-driving
vehicles and the increased networking of traffic – including withrespect to safety. That is why, as part of the “Trust Center” initiative, which it launched in 2019, DEKRA is working with othertest organizations to promote unfiltered access to vehicles’ safety
and environmental data. Without this data, it is not possible toguarantee the proper condition and safety of vehicles. The “TrustCenter” is a trustee-based model for the secure gathering andanalysis of data for the purpose of consumer protection.
Lifts in the cloudAs a lift inspection expert, DEKRA further developed its
ground-breaking retrofit solution in the reporting year in theform of the “DEKRA Lift Explorer.” With the cloud-based solution from the Internet of Things (IoT), lift operators can improve
the safety and efficiency of their facilities and optimize maintenance.
The “DEKRA Lift Explorer” consists of a high-tech box
the same size as a smartphone box, which is mounted onto thelift car. This box records every journey, the position of the liftcar, the door movements, and the load. The recorded data
appears in a web-based cloud dashboard in real time. The information gathered can be used to identify targeted maintenanceand repair measures in order to improve availability. The“DEKRA Lift Explorer” also enhances safety in a way that goes

D E K R A Financial Report 2020

beyond the statutory requirements. If the lift breaks down
between storeys, the operator can respond immediately irrespective of whether an emergency call is made.
Intensifying the digitalization campaign

Against the background of the COVID‑19 pandemic, since
March 2020 DEKRA has driven forward the digitalization ofservices and processes in the fiscal year. In this regard, new services were launched (see Report on economic position) and thefoundation has also been laid for the development of future-oriented services, for example, in the areas of artificial intelligence(AI) and cyber security.
A Center of Excellence for AI has been in the works incooperation with DEKRA Digital since the beginning of 2020.
The aim is to further improve existing services and develop newones based on the possibilities offered by AI. DEKRA is leveraging the experience it has gained with AI since 2019 in managing claims and identifying insurance fraud based on image
and voice analysis.
In order to protect people around the world from hacker
attacks and data misuse, DEKRA has set up a Group-wide Cyber
Security Team. Here, the wealth of expert knowledge is being
leveraged to develop solutions to the challenges posed by digitalization – for example, for the mobility of the future. In collaboration with its partners, DEKRA is carrying out pioneering
work in the area of “Automotive Cyber Security.” Together, they
are developing security solutions for over-the-air-updates, forexample. These include the testing, inspecting, and auditing ofservices as well as training sessions on the various technologies
and regulations.
INTEGRITY AND SUSTAINABILITY
Compliance management system

DEKRA’s compliance management function is based on a senseof responsibility on the part of every employee, combined withbusiness activity based on general ethical principles. The observance and implementation of compliance is a high-profile issue

07

throughout the Group. In 2020, DEKRA’s compliance management function was expanded and adapted in response to changing requirements. DEKRA’s Compliance Office drew up new,strictly values-based training concepts with the involvement of
the operating units. Work on the further development of theCompliance function continued, now with a greater focus oninteraction with the regions. The Compliance Office is working
to identify new, international fields of risk and to reinforce theinternational team and global teamwork.
The Chief Compliance Officer and the Compliance Office
are a confidential and neutral point of contact for employees
and externals. DEKRA has an internal system that allows
potential misconduct or violations of the law to be addressed
via the Company’s website. Communication relating to theCompliance Guidelines is provided on all important digitalplatforms such as the intranet, DEKRA Connect, and the internet. In our opinion, the low number of compliance incidents
reported and processed in the reporting year once again showedthat the atmosphere at DEKRA is characterized by integrity andfairness, and that the compliance program is accepted andapplied in practice.
Quality management

Integrity, reliability, and impartiality are crucial to DEKRA’s success as an independent expert organization. DEKRA’s reputation
and ability to compete on the market, and its impartiality whenrendering our services and public duties, are heavily dependent on
the conduct of each and every individual. Authorities, clients, customers and business partners can reasonably expect that all
DEKRA employees, middle management, executives, and board
members, work on the basis of these standards, and can be relied
upon to fulfill their duties and conduct themselves as fair-mindedbusiness partners. The internal requirements and obligations aredefined in the quality management system. Last year too, in
response to the modification and updating of internationally valid
standards, the modified requirements were implemented in theprocesses and included in a risk assessment process.

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Quality management (QM) not only sets the requirements, but also constantly inspects and optimizes the processes
and services at DEKRA. In addition to annual external inspections conducted by the authorities, all subsidiaries with certified
or accredited QM systems ensure the quality of their products
and processes by means of regular and planned audits. QM also
manages and secures DEKRA’s accreditations and official permits. For example, the change to the regulations regarding regular vehicle inspections played an important role in fiscal year
2020. The accreditation for vehicle testing was secured. DEKRA
has a total of 474 accreditations.
In fiscal year 2020, DEKRA quality management also
made progress with harmonizing the overlapping requirementsin the manuals of the various departments. To this end, a new
Company-wide Enterprise Quality Management System (eQMS)
is currently being introduced.
In addition, necessary transitions to new standards andto modified regulatory frameworks were undertaken during the
fiscal year. Important milestones included the appointment of
DEKRA as a Nationally Recognized Testing Laboratory (NRTL)
by the US Occupational Safety and Health Administration(OSHA) and its authorization as a tester according to the ioXt
standard in the area of cyber security in the Internet of Things.
ENVIRONMENTAL PROTECTION AND SUSTAINABILITY
Sustainability management

The expansion of DEKRA’s sustainability management was also
continued in fiscal year 2020. The Company’s direction withrespect to sustainability is guided by DEKRA’s corporate values
as well as the requirements of the German and internationalsustainability codes. DEKRA achieved a platinum award in its
ecovadis sustainability rating, providing renewed, external validation of its direction.
Based on our sustainability strategy 2025, both ecological(expanding internal environment and climate management) andsocial matters (DEKRA social standards, processes that ensure
human rights are observed, expanding on personnel, sustainability and governance matters) are being driven forward, along withthe organizational integration of sustainability management into
the supply chain. The Company’s direction with respect to sustainability is constantly being assessed and developed in dialog
with internal and external stakeholders. On the whole, DEKRA
mainly contributes to establishing a sustainable trend in termsof the economy, environment and society as a multiplier, throughits know-how and expert services with a focus on safety, as well
as by specifically supporting customers in matters of sustainability and corporate social responsibility. For example, in 2020
DEKRA carried out audits at six Bundesliga football clubs in linewith the sustainClub standard. In addition, DEKRA experts supported the German Football Association (DFB) in becoming theworld’s first sustainable football association.
Protecting the environment and climate

The internal environmental management system is being further expanded and enhanced in line with current findings andrequirements based on a global management system and thedata-driven management of environmental protection issues.
The focus is on the efficient use of energy and resources, as wellas protecting the climate. Goals include, for example, switchingto 100% renewable energy by 2025. At the same time, DEKRA
wants to reduce its CO2 emissions in respect of energy consumption, its vehicle fleets and business travel by 50% compared
to 2018. In this endeavor, DEKRA is also taking advantage ofthe expertise of its employees who specialize in these fields
internally. Employees receive training and are the target ofawareness campaigns relating to environmental issues. Internal
best practices are highlighted, and applied to suitable areas.
What is more, DEKRA also offers expert services in the area ofclimate, environment and energy, thus also contributing toenvironmental and climate protection outside the Company.

D E K R A Financial Report 2020

PERSONNEL REPORTCOVID‑19 slows employee growth – Decline in Temp WorkIn the eight global DEKRA regions (excluding Temp Work),headcount increased by 413 employees to 28,337 (prior year:
27,924), despite the more difficult conditions owing to the global
COVID‑19 pandemic. However, employee growth slowed in theregions and declined from 4.3% in the prior year to 1.5% in
2020. The core workforce in the Germany region grew by 1.8%
in comparison to the prior year, from 12,537 to 12,765 employees. The number of employees in the Service Divisions also roseslightly from 217 to 222. The central units (“Steering & Support”) grew to 666 employees (prior year: 648), in particularagainst the background of the drive for digitalization.
By contrast, the number of employees in Temp Workdecreased by 1,094 to 14,765 (prior year: 15,859) on account of
the COVID‑19 pandemic. The headcount for Temp Work inGermany fell by 654 to 7,577 employees (prior year: 8,231).
As a result, the DEKRA Group employed a total of 43,990
people at the end of the year (prior year: 44,648).
Declaration of complianceTargets have been set for the number of women represented on
the most important corporate bodies in first- and second-tiermanagement. The target figure for the composition of the Supervisory Board of DEKRA SE is 16.7% (prior year: 16.7%). Thisquota has been reached. A target of 25% has been set for theManagement Board of DEKRA SE from 2022 onward. This target
has already been met in 2021. A quota of 15% and 20% has been
set for the first management level (Executive Committee/Operational Committee) and the second management level (Management Committee), respectively. At 8.7%, the target for the firstmanagement level has not been met (prior year: 12.5%). At 18.1%,
the aforementioned target for the second management level has
also not been achieved (prior year: 19.1%). However, both targets
remain in place, and we are constantly working to achieve them.

09

Rigorous implementation of the global employee survey

A focus area in the reporting year was the processing of
responses from the global employee survey, which was carriedout at the end of 2019. The increased participation rate showsthat there is a great deal of interest among the workforce toactively participate and help shape the communication process
in a structured manner. After the survey, around 1,000 teamevents were held globally and action plans were developed on
this basis. Six focus areas were identified by Group managementin parallel with this, which have been dealt with in the Business
Units worldwide and flanked by central measures. One resultof this was a web-based interactive training course which wasdeveloped in several languages. Using this instrument, employees can prepare for the regular dialog with management in atargeted manner.
Global management and junior talent development

The situation relating to COVID‑19 also had a major impact onin the area of management and junior talent development: The
global management development program (MFP) with national
and international formats, which was launched in prior years,
could not be held as planned. It had been planned and preparations had been made for around 200 middle managers to takepart in the reporting year. The dates were postponed to 2021 dueto the pandemic and the associated restrictions on travel andgatherings. With the MFP, DEKRA has created a uniform concept of management and the management culture that is requiredin order to implement the Company’s strategy. Efforts to enable
managers to implement the necessary changes in a targeted manner are being expanded. The program also contributes to ongoing integration at all levels of leadership, as well as to a further
improvement in collaboration in the countries in question.
In order to ensure high-quality global management andefficient, virtual team leadership, a web-based live training format “Leading in times of uncertainty and crisis” was introduced

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Report on economic position

Report on economic position﻿for middle management. In order to effectively support the
global IT transformation, which is already underway, a virtual“Leadership Journey” platform consisting of several modules
was implemented for global IT managers.
In the reporting year, DEKRA also started a new mentorship program in order to foster international top talent.
As part of DEKRA’s digital transformation, the HR
department has also increasingly invested in modern technology in order to simplify Group-wide administrative processes
and speed these up for employees.

REP O R T O N EC O N O MI C P O SI T I O N
GENERAL ECONOMIC AND
INDUSTRY-SPECIFIC CONDITIONS
Global economy faces a recession

The global economy shrunk significantly in 2020 for the firsttime in many years. According to data from the World Bank,
global gross domestic product (GDP) declined 4.3% comparedto growth of 2.3% in the prior year. The recession was strongest
in the euro zone (down 7.4%), Latin America and the Caribbean(down 6.9%) as well as the US (down 3.6%). Only the East Asia
and Pacific region achieved slight growth (0.9%), which is primarily attributable to the development in China (2.0%).
Unemployment increased both in the euro zone and in theother countries of the EU. In the countries of the euro zone,
unemployment rose in December 2020 to 8.3%. According to calculations by the statistical office of the European Commission(EUROSTAT), the unemployment rate in the EU was also up on
the prior year at 7.5% in December 2020. Overall, around 16.0 million people were unemployed in the EU in December 2020.
According to EUROSTAT, annual inflation in the eurozone fell year on year from 1.3% in the prior year to -0.3% inDecember 2020. According to EUROSTAT, Germany had an
inflation rate of -0.7% in December 2020.

Difficult framework conditions for DEKRA

The global markets in the automotive industry, which is important for DEKRA, developed negatively due to the recessionary
environment caused by COVID‑19. According to data provided
by the VDA [“Verband der Automobilindustrie”: German Association of the Automotive Industry], sales of passenger cars in
Europe (EU-27, EFTA, UK) dropped year on year by 24.3%. Of
the 12.0 million units in total, 2.9 million units were registeredin ­Germany alone, which corresponds to a decrease of 19%.
Unit sales in the US market were also significantly down on theprior year at 14.5 million units (down 14.7%). The trend in
China was negative (down 6.1%). With sales of new vehicles of
19.8 million units, however, the People’s Republic of China
remains the world’s largest passenger car market by far.
DEKRA’s industrial business is influenced by the German
and international industrial economy. The COVID‑19 pandemic
has significantly dampened the climate. According to the BDI[“Bundesverband der deutschen Industrie”: Federation of German Industries], industrial production in Germany fell 10.1%
in comparison to the prior year in the third quarter of 2020. On
account of the economic downturn, industry is likewise suffering in all of the countries that are important for DEKRA.
In the Training and Temp Work Service Divisions, theawarding of government contracts and demand for temporary
workers are particularly relevant factors. According to data provided by the German Federal Employment Agency[“Bundesagentur für Arbeit”], the number of temporary workers has declined in recent years. Three fifths of this decline are
attributable to manufacturing professions, a trend that is
likely to be intensified by the recession brought about by
COVID‑19. The temporary employment sector is usually the
first to feel the effects of an economic slowdown. In light of thechanging demands on the qualifications of employees, theBundesagentur für Arbeit also invested around 1.9 billion euros
in the promotion of vocational training in 2020.

D E K R A Financial Report 2020

BUSINESS PERFORMANCEGroup
COVID‑19 pandemic leads to a drop in revenue

On account of the severe global economic effects of the COVID‑19
pandemic, in fiscal year 2020 DEKRA was not able to continue
on the growth trajectory that it has been on for many years. Revenue fell by 6.5% to 3,188.2 million euros. There were, however,significant differences in the development of the individual
regions and the individual Service Divisions. Earnings before
interest and taxes (EBIT) also developed negatively, amounting
to 162.4 million euros (prior year: 201.8 million euros). DEKRA
was able to mitigate the impact of the pandemic using strict costmanagement and effective cash and receivables management.
Investments were focused on the most important future projects.
In order to continue to secure the Company’s liquidity, DEKRA
reviewed and expanded the Group’s credit lines.
Germany region

In Germany, DEKRA recorded a drop in revenue of 6.6% to
1,929.6 million euros. The fact that the drop in revenue was only
moderate is due, firstly, to the level of quality of DEKRA’s services, its extensive presence all over Germany and the rapid digitalization of services. Secondly, DEKRA was also able to continue to provide all its services even during the lockdown phaseof the COVID‑19 pandemic, for example the systemrelevant
vehicle inspections.
Inspection business holds up well

In Vehicle Inspection, we were able to successfully increase thenumber of main inspections carried out by 1.9% to 11.8 million
with a stable market share of 33%. By contrast, other vehicle-related services were hit harder by the crisis. For example, theClaims & Expertise business shrank due to a decline in thenumber of accidents (down 15.8%) and fewer instances of damage caused by natural disasters.
In the area of Product Testing, DEKRA reacted very quickly
to the changing underlying conditions in the course of the coronavirus pandemic. By extensively expanding its capacity, frommid-March 2020 DEKRA was already able to help address the, atthe time acute, shortage of respiratory masks. As one of two

11

registered centers in Germany, DEKRA has since then been testing
the effectiveness of respiratory masks (CPA) intended for use
related to the corona virus pandemic in its special laboratory in
Essen according to specially adapted testing principles. Demand
for this service remained high until the end of August. Since September, respiratory masks have once again been tested in line withthe designated EN149 standard.
The Industrial Inspection business developed relatively
well in the difficult environment of the pandemic. Customers
from a wide range of sectors used the time during the lockdown
to inspect and test facilities and materials in order to meet regulatory safety standards. At that remote tests and remote audits
with the help of contactless remote technology were used
increasingly.
Move to the “virtual classroom”

In 2020, more than half of the qualifications and courses offeredin the area Training were moved into the “virtual classroom.”
Therefore, on average around 70% of all training sessions wereable to take place. Freight forwarders and trading companies
are currently the main users of the webinars.
After the outbreak of the COVID‑19 pandemic, DEKRA
supplemented its online safety portal DEKRA Safety Web withcorresponding instructions, for example on hygiene rules andthe transport of COVID‑19 tests. It is now used by around
140,000 employees from more than 360 companies.
In 2020, Temp Work was one of the Service Divisions at
DEKRA that was most directly impacted and hardest hit by the
COVID‑19 pandemic, which is the reason behind a significant
portion of the decrease in Group revenue. This also applies toGermany: Of a total of almost 7,096 temporary workers, overthe course of 2020 an average of around 2,104 per month wereon government-subsidized short-time work.
Central East Europe & Middle East region

In the reporting year, DEKRA recorded revenue of 146.9 million
euros (prior year: 162.5 million euros) in the Central East
Europe & Middle East region. The decline in revenue is primarily attributable to the Training and Temp Work Service Divisions along with the services in Claims & Expertise.

D E K R A Financial Report 2020

12

GROUP MANAGEMENT REPORTGROUP MANAGEMENT REPORT

Report on economic position

Report on economic position﻿﻿In the difficult times of COVID‑19, Vehicle Inspection
services were a mainstay of the business. In contrast to otherservices, it was still possible to carry out vehicle inspections,although sometimes to a limited extent. In addition, global
orders from global customers from the commercial vehicle sector had a positive impact on individual countries in the region,
for example the inspection of leased vehicles on their return.

the charging infrastructure. In 2020, the test laboratory in Arnheim was enhanced by investing in new devices. Today, it is oneof the few labs in the world that can test high-performancecharging stations. Furthermore, the Open Charge Alliancenamed the two labs in Arnheim and in Sterling, USA as official
test laboratories, e.g., for tests related to measurements and settlement between charging station operators.

North-West Europe region

South-West Europe region

DEKRA generated revenue of 332.6 million euros (prior year:
346.1 million euros) in the North-West Europe region. The traditionally strong area of Industrial Inspection and the services
in Vehicle Inspection were once again able to increase their revenue in 2020. Services in Consulting, Claims & Expertise, Product Testing, Temp Work and Audits, on the other hand, were
adversely affected by the tense economic situation. The businessin the United Kingdom was particularly hard hit.
The number of environmental catastrophes is on the rise.
The Claims & Expertise Service Division has therefore expanded
its capacity. With offices in the North-West Europe region and, inthe future, increasingly in North America region, DEKRA’s experts
support the insurance industry worldwide in recording and assessing damage, for example after hurricanes or earthquakes.
In the area of Industrial Inspection services, DEKRA
won a contract from a rail technology company for the inspection and homologation of a new Intercity train for the firsttime. The “Intercity New Generation” will run on the highspeed rail link between the Netherlands and Belgium. In a
Swedish power plant, despite the more difficult conditions dueto the coronavirus, DEKRA inspected Block 4 in four days and
14 hours with a team of more than 50 experts from all overSweden and Lithuania, thus underlining DEKRA’s competence
in non-destructive testing.
In the growth markets of testing the charging infrastructure for electromobility, the Product Testing Service Division is
the only provider worldwide that can offer end-to-end tests of

DEKRA generated revenue of 497.9 million euros (prior year:
532.2 million euros) in the South-West Europe region. The consequences of the global pandemic were clearly noticeable in theentire range of services in the region.
In France, DEKRA’s second domestic market, the impactof the pandemic was felt the strongest in the areas of Industrial
Inspection and Claims & Expertise. DEKRA was able to successfully mitigate this impact by offering a special anti-corona
hygiene concept for customers in high-risk sectors (“Real Safety”).
The effects on the business with vehicle-related services
was limited. DEKRA expanded its market position as a test center for automated and autonomous driving with the Test Centerin Narbonne. Furthermore, DEKRA geared itself toward thechange in mobility offers. DEKRA now also offers automotive
services for companies and banks that offer long-term rental
vehicles to private customers.
In Spain, the crisis was primarily noticeable in the
demand for the services of Claims & Expertise. By contrast,
Product Testing continued to develop positively. The DEKRA
laboratory in Málaga was one of the first to receive certificationin accordance with the ioXt standard. Developed by an allianceof manufacturers, industry associations and government organizations, this standard is used to test the cyber security ofdevices used for the Internet of Things (IoT). The certification
opens up additional prospects for DEKRA in the future field of
IoT, which also comprises products in areas such as sensors andcameras as well as lighting, heating, and ventilation.

D E K R A Financial Report 2020

North America region

DEKRA generated revenue of 83.8 million euros (prior year:
93.6 million euros) in the North America region. Despite difficult circumstances, DEKRA continued to systematically work
toward further developing the strategically important region,
paving the way for the future development. The Consulting
business was hardest hit by the pandemic. By comparison, thedevelopment of services in the areas of Claims & Expertise andIndustrial Inspection was positive.
DEKRA improved its access to the North American market
in the reporting year by obtaining authorization from the US
occupational safety and health administration (OSHA). OSHA
has appointed DEKRA as a Nationally Recognized Testing Laboratory (NRTL) for the US. The Group can thus award the“DEKRA US” quality symbol for products sold on the US market.
As DEKRA has already been recognized as a certifying body for
the Canadian market by the Standards Council of Canada (SCC),
manufacturers can now have their products tested and certified
by DEKRA for the whole North American market. DEKRA is
now 1 of 20 authorized NRTL laboratories. The range of services
includes safety tests and certifications for environment-­related
tests and locations with a high risk of explosion (HazLoc), as well
as data processing, medical, and energy supply products.
Also in the US, DEKRA responded quickly to the requirements resulting from the COVID‑19 pandemic and invested
further in the digitalization of services. With the e-commerce
solution Umbrella, customers can simplify the process of management system certification right from the outset because
Umbrella makes it possible to create a detailed and legally compliant offer online in just a few minutes.
In Industrial Inspection, the integration of the company
acquired in 2019, JAMKO, was concluded, expanding thesphere of action in the northeast of the US. By acquiring
JAMKO, DEKRA has expanded its remote-controlled visualinspection expertise.

13

In the area Consulting many customers in high-risk sectors were advised on how to successfully reduce accident rates,
including rail network operators, oil exploration companies andlogistics service providers. With New Mexico, the Vehicle
Inspection Service Division started the testing business in afurther US state. Eight emission testing stations are in operationin the Albuquerque region. DEKRA is thus now present in seven
US states.
In 2020, DEKRA entered the field of vehicle testing in
Mexico when the state of Jalisco commissioned DEKRA in thesummer of 2020. The establishment of six emission testing stations with 42 lanes in Guadalajara, the second-largest city inthe country, will start in the spring of 2021. In the reporting
year, the first of 10 test stations went into operation in the likewise newly added market Chile, and more will follow in the
coming year.
South America region

DEKRA generated revenue of 9.6 million euros (prior year:
18.7 million euros) in the South America region. Above all
Brazil and its most important services in Claims & Expertise
were hard hit by the effects of the pandemic.
After its start in 2019, the expert migration program in
Brazil gained significant momentum. This program of theTraining Service Division trains nursing staff and prepares
them for working in Germany. The program was extended tomany regions in Brazil; however, it still accounts for a relatively
small share of revenue. Nevertheless, the number of participants
tripled in the reporting year.
A positive development was that Brazil’s national telecommunications agency Anatel recognized DEKRA as a certifying
body. This opens up new business opportunities related to thetesting of telecommunication products for the Brazilian market.
In the area of energy efficiency (EE) certification of household
appliances and air conditioners, DEKRA expanded its sphereof action in the region to include Colombia, Costa Rica, Ecuador, El Salvador, Panama and Peru.

D E K R A Financial Report 2020

14

GROUP MANAGEMENT REPORTGROUP MANAGEMENT REPORT

Report on economic position

Report on economic position﻿﻿

East & South Asia region

DEKRA generated revenue of 113.3 million euros (prior year:
102.5 million euros) in the East & South Asia region. The impactof the COVID‑19 pandemic was not as strong on the whole as
was the case in other regions, meaning that the positive development in Product Testing also continued in 2020.
By founding a joint venture, DEKRA has entered thefuture market of testing of connected and intelligent vehicles in
China. DEKRA expanded its international network of testing
centers by cooperating with a joint venture partner in China.
The goal is to create a high-profile testing laboratory for automated and connected driving together with the Chinese partner.
Against the background of the growing significance of China as
the world’s largest automotive market and as an innovation center for mobility, the joint venture has enabled DEKRA tostrengthen its competence in the testing of key technologies
related to wireless communication, connectivity, artificial intelligence, geoinformation systems and cyber security.
The Product Testing services also strengthened theirposition. DEKRA now tests materials and modules of eight of
the ten largest Chinese manufacturers in the photovoltaics sector. In the lighting sector, DEKRA benefited from the fact that
the China National Certification and Accreditation Administration (CNCA) has recognized the DEKRA laboratories inShanghai and Guangzhou as laboratories operating in accordance with the standards of China Compulsory Certification(CCC). Thus, DEKRA can offer inspection, testing and certification services from a single source to international manufacturers of lighting products.
In South Korea, the acquisition of a leading laboratory
significantly strengthened DEKRA’s competence in testingof electromagnetic tolerance, particularly for automotive
manufacturers.
Following investments to further expand its testing competence, the DEKRA laboratory in Taiwan can now also test

5G technology in compliance with international standards for
global markets. Furthermore, DEKRA opened the first laboratory of its kind in Japan, where network operators can have 5G
OTA tests performed. OTA stands for “Over the Air”, whichmeans wireless transmission of data, such as software updates
for vehicles.
Southern Africa & Oceania region

Revenue of 74.5 million euros (prior year: 86.4 million euros)
was generated in the Southern Africa & Oceania region. The
drop in revenue was due to the restrictive COVID‑19 measures,
which mainly affected the Vehicle Inspection business in New
Zealand and the Industrial Inspection business in South Africa.
For the next three years, DEKRA will still be the New
Zealand government’s exclusive partner for practical driving
tests. The existing contract was extended and comprises roughly
270,000 tests per year. DEKRA has further digitalized the tests.
The main instrument used by license examiners is a tablet. The
examiner can use the tablet not only to exactly document thepractical test, but can also transmit the test result directly to thelicense register. This simplifies and expedites the process for allparties involved.

FINANCIAL POSITION AND PERFORMANCE
Financial performance

At 3,188.2 million euros (prior year: 3,409.0 million euros), therevenue of the DEKRA Group was 220.8 million euros below
the prior-year level in fiscal year 2020, which corresponds to adecrease in revenue of 6.5%. Consequently, the target of increasing revenue by between 3% and 5% for fiscal year 2020 was
missed, which is largely due to the difficult macroeconomic
market conditions caused by the COVID‑19 pandemic. Earnings (EBIT) fell by 39.4 million euros to 162.4 million euros asa consequence of the COVID‑19 pandemic.
GROUP REVENUE
worldwide in million euros

3,409

3,188
–6.5%
Revenue decrease

Overall statement by management

DEKRA’s revenue and EBIT declined in fiscal year 2020 for the
first time in many years due to the COVID‑19 pandemic andthe associated global economic downturn. The fallout of the
COVID‑19 pandemic was felt in particular in the Temp Workand Claims & Expertise business areas. DEKRA responded very
quickly to the challenges of the pandemic and many services
were digitalized and made remote. Nevertheless, due to theworldwide effects of the crisis, losses in submarkets were notcompensated by growth in other markets. As set out in the forecast report, DEKRA anticipates that 2021 will also still beaffected by the COVID‑19 pandemic.

D E K R A Financial Report 2020

2019

2020

The effect on revenue development in the fiscal year of acquisitions was 0.1% (previous year: 0.2%) and the one of first-time
consolidations was 0.3% (previous year: 0.1%). Changes inexchange rates reduced revenue by 0.3% (prior year: positiveeffect of 0.2%).
With the exception of the East & South Asia region, allregions recorded a year-on-year decline in revenue in the fiscal
year. The South America, North America and Southern Africa& Oceania regions recorded the largest percentage decreases. In
South America and Southern Africa, the effects of the COVID‑19
pandemic were exacerbated by difficult economic conditions.
The services in the business areas Temp Work, Claims &Expertise, Training and Consulting recorded a considerable

15

decrease in revenue on account of the economic downturncaused by the COVID‑19 pandemic. The decline in revenue isprimarily due to the restrictive measures implemented to contain the pandemic such as travel bans and contact restrictions
coupled with a drop in demand. The areas Vehicle Inspection
and Product Testing developed positively and to a certain
extent were able to benefit from the impact of the COVID‑19
pandemic (e.g., by testing respitory masks used in the coronavirus pandemic).
Other operating income increased by 20.0 million euros
to 57.2 million euros (prior year: 37.2 million euros). The
increase is primarily due to government assistance received inconnection with COVID‑19.
At 5.5%, the decrease in cost of materials did not matchthe decline in revenue. As a result, the ratio of cost of materials
to revenue increased slightly to 9.9% (prior year: 9.8%). Personnel expenses decreased by 5.7% to 2,101.4 million euros (prioryear: 2,227.9 million euros). The significant decline in personnel
expenses stems from the the area Temp Work. This is attributable to government support and the decreasing number of temporary workers. By contrast, the ratio of personnel expenses torevenue increased slightly by 0.5 percentage points from 65.4%
to 65.9% in fiscal year 2020.
Other operating expenses fell at a lower rate than revenue
by 23.9 million euros to 474.4 million euros, which led to aslight increase of 0.3 percentage points in the expense ratio to
14.9% (prior year: 14.6%). The reduction in other operating
expenses was achieved through cost savings in the areas of
travel, advertising, vehicle and administrative expenses. On theother hand, rent and building costs, IT costs and allowances onreceivables increased slightly.
The volume of write-downs rose by 4.8% or 9.4 million
euros to 204.3 million euros in fiscal year 2020 (prior year:
194.9 million euros). In the fiscal year, impairment losses of
13.1 million euros (prior year: 0.0 million euros) were recognized for IT projects. By contrast, depreciation of property, plantand equipment decreased by 4.8 million euros.
Operating profit (EBIT) – calculated as earnings before
the financial result and taxes – decreased by 19.5% to a totalof 162.4 million euros (prior year: 201.8 million euros).

D E K R A Financial Report 2020

16

GROUP MANAGEMENT REPORTGROUP MANAGEMENT REPORT

Report on economic position

Report on economic position

﻿﻿

The target set of slightly improving on the prior year’s operating
profit was not achieved, in particular due to the impact of the
COVID‑19 pandemic. The year-on-year decline in earnings isin large part due to the services in Claims & Expertise, Training, Industrial Inspection, Temp Work and Consulting. The
return on sales calculated in relation to operating profit fell by
0.8 percentage points year on year to 5.1%.
The financial result improved by 4.7 million euros on theprior year to -15.5 million euros on account of an increase in
the investment result and an increase in other interest and similar income. The reduction of net lending from pension liabilities by 2.7 million euros in comparison to the prior year also
improved the financial result. By contrast, interest and similar
expenses increased year on year, largely due to currency effects.
Consequently, earnings before income taxes decreased by
19.1% to 146.9 million euros (prior year: 181.6 million euros).
The return on sales, calculated in relation to income before
taxes, fell to 4.6% (prior year: 5.3%).
The Group tax rate rose 2.1 percentage points on the prioryear to 36.1% (prior year: 34.0%). The increase largely resultsfrom the reduction of deferred tax assets on loss carryforwards.
The consolidated net income for fiscal year 2020 decreased
by 25.9 million euros to 93.9 million euros (prior year:
119.8 million euros).
Other comprehensive income fell by 29.3 million euros to-63.1 million euros (prior year: -33.8 million euros). This islargely due to the adjustment to equity instruments measured
at fair value through other comprehensive income in theamount of -34.4 million euros. In addition, the actuarial adjustments to pension obligations of 18.7 million euros (prior year:
53.9 million euros) also reduced other comprehensive income.
This is attributable to the reduction of the interest rate by
0.25 percentage points to 0.75%. The currency translation

reserve changed by -10.0 million euros (prior year: increase of
4.2 million euros), mainly due to the subsidiaries in Brazil,
South Africa and Hungary. This was countered by currencytranslation effects of the subsidiaries in Sweden. This results intotal comprehensive income, taking into account expenses andincome recognized through other comprehensive income, of
30.8 million euros (prior year: 86.1 million euros).

R E C O N C I L I AT I O N O F A D J U S T E D E B I T A N D E B T F O R 2 0 2 0
in million euros

+16.0

+0.2

+1.6
195.9
+3.4
183.8

+4.6

To aid comparison of the operating result, the operating
result and earnings before income taxes for 2020 and 2019 were
adjusted for the following non-operating (special) effects:– A mortization of intangible assets identified as part of a purchase price allocation (PPA amortization)– Project costs for the significant improvement of the IT
infrastructure, as well as for market entry in new countries
or business segments– Restructuring expenses, M&A costs and integration costs– Earnings from the sale of entities and individual items ofproperty, plant and equipment, as well as from the subsequent measurement of purchase price components (earn-out
agreements) and from purchase price reimbursements– Exchange rate effects in relation to loans within the Group(effect on the financial result)– Special effects from the measurement of put and call options(effect on the financial result)

17

–15.5

+11.1

162.4

EBIT 2020
unadjusted

PPA
impairment

Project costs

Othereliminations

Integration andtransaction costs

Restructuring
expenses

EBIT 2020
adjusted

Financial result Eliminations fromunadjusted
financial result

EBT 2020
adjusted

R E C O N C I L I AT I O N O F A D J U S T E D E B I T A N D E B T F O R 2 0 1 9in million euros+6.3

Adjusted operating profit decreased by 13.7% to 195.9 million
euros (prior year: 227.1 million euros). As a result, the margin
for the adjusted operating profit fell by 0.6 percentage points to
6.1%. Adjusted earnings before taxes amounted to 183.8 million
euros in the fiscal year (prior year: 210.2 million euros). This
represents a margin of 5.8% (prior year: 6.2%).

+2.4

+0.7

+0.4
227.1

+15.5
+3.3
210.2
–20.2
201.8

EBIT 2019
unadjusted

D E K R A Financial Report 2020

PPA
impairment

Project costs

Othereliminations

Integration andtransaction costs

Restructuring
expenses

D E K R A Financial Report 2020

EBIT 2019adjusted

Financial result Eliminations fromunadjusted
financial result

EBT 2019
adjusted

18

GROUP MANAGEMENT REPORTGROUP MANAGEMENT REPORT

Report on economic position

Report on economic position

Financial position

Capital expenditure

Financial management

Net capital expenditure on property, plant and equipment andintangible assets amounted to 89.6 million euros (prior year:
128.2 million euros). Spending mainly related to land and buildings, technical and other equipment, furniture and fixtures aswell as intangible assets. Investments in subsidiaries and business units amounted to 18.4 million euros in the fiscal year (prioryear: 15.2 million euros).

to 22.5 million euros (prior year: net outflow of 36.9 million
euros), as well as the higher cash inflows from raising loans
amounting to 77.4 million euros (prior year: net inflow of
26.5 million euros).
Cash and cash equivalents (consisting of checks, cash in
hand, bank balances, and other cash equivalents) rose by a totalof 75.2 million euros to 167.5 million euros (prior year: 92.3 million euros).

Liquidity analysis

Composition of assets, equity and liabilities

The development of liquidity in the DEKRA Group is mainly
influenced by the decrease in net working capital (excluding
cash and cash equivalents), lower expenditures on property,
plant and equipment and intangible assets compared to theprior year and increased cash repayments of loans.
Cash flow from operating activities increased by 69.8 million euros to 413.1 million euros (prior year: 343.3 million
euros), despite a drop of 25.9 million euros in the consolidated
net income for the year. The decrease in net working capital(excluding cash and cash equivalents) of 104.6 million euros
contributed considerably to this.
The net cash outflow from investing activities came to121.9 million euros (prior year: 154.6 million euros). Thisdecline stems from reduced investment in property, plant andequipment and intangible assets, which at 96.7 million euros
was below the prior year (139.4 million euros).
The net cash outflow from financing activities came to
216.6 million euros (prior year: net outflow of 178.3 million
euros). This development is due to higher cash outflows fromprincipal repayments of finance loans in the amount of
181.9 million euros (prior year: 40.1 million euros) and anincreased transfer of profit to DEKRA e. V., Stuttgart, in theamount of 53.0 million euros (prior year: 37.4 million euros).
This was largely offset by the cut-off-related change in the cash
pool with DEKRA e. V., Stuttgart, with a cash inflow amounting

Total assets fell by 16.4 million euros from 2,755.4 million euros
to 2,739.0 million euros in the past fiscal year, a decrease of 0.6%.
Non-current assets decreased by 21.4 million euros to1,775.3 million euros (prior year: 1,796.7 million euros). Current
assets, on the other hand, increased slightly by 5.0 million euros
to 963.7 million euros (prior year: 958.7 million euros).
Under non-current assets, intangible assets decreased by
14.7 million euros to 721.9 million euros (prior year: 736.6 million euros). In addition, non-current financial assets decreasedby 31.8 million euros to 77.7 million euros, which is largely due
to first-time consolidations of entities that were not consolidated
as of the end of the prior year and that are measured at fair value
pursuant to IFRS 9, and the annual adjustment of the fair valueof equity instruments. Property, plant and equipment, on theother hand, increased slightly by 3.1% to 432.0 million euros(prior year: 419.0 million euros). This increase is largely due tothe acquisition, construction and modernization of properties
for the Group’s own use, the acquisition of land, and investment
in new technical equipment.
The slight increase in current assets is due to two opposing
effects. Trade receivables and contract assets decreased year on
year due to the declining revenue volume and active receivables
management by 58.3 million euros to 510.2 million euros. The
maturities of trade receivables at the overall Group level fell by
about three days to 49 days (prior year: 52 days) due to improved

The Group’s financial management includes cash and liquidity
management as well as the management of market price risks(interest, currency) and credit risks.
Cash management determines the required or surplus
cash for all DEKRA entities. Timely account management
ensures that the necessary funds for payments are available
where they are needed, with the aim of keeping external investment and borrowing to a minimum.
Liquidity management ensures that all payment obligations of the entities in the DEKRA Group are always met. To thisend, the liquidity planning determines cash flows from operating activities, secures foreseeable liquidity requirements at an
early stage and invests surplus liquidity on the money market.
Market price risk management is responsible for limiting
the impact of interest rate and currency fluctuations on theGroup’s earnings. For this purpose, the market price risks are
determined and used as a basis for hedging decisions. Such decisions include the selection of hedging instruments, the volume
to be hedged and the period to be covered. DEKRA used derivative financial instruments in the fiscal year to hedge variable-rate finance arrangements.
The risk volume involved in the management of default
risk includes securities investments and the investment of cash
and cash equivalents in financial institutions as part of liquidity
management, as well as the credit risk relating to end customers
due to the granting and systematic monitoring of payment
terms from trade.
Short-term investments of cash and cash equivalents are
only made with top-rated financial institutions and on the basisof current ratings from rating agencies as well as taking into
account current CDS spreads. We use commercial credit agencies to assess the creditworthiness of our customers and in casesof doubt, upfront payment or bank guarantees are required.

D E K R A Financial Report 2020

19

receivables management. By contrast, cash and cash equivalents
increased by 75.2 million euros to 167.5 million euros.
Equity increased by 12.2 million euros to 808.5 million
euros (prior year: 796.3 million euros). The consolidated net
income for the year of 93.9 million euros (prior year: 119.8 million euros) and the addition to the capital reserves by
DEKRA e.V., Stuttgart, of 25.0 million euros (prior year:
25.0 million euros) had a positive effect. This was offset by thenegative effects of the profit transfer to DEKRA e.V., Stuttgart,of 34.9 million euros (prior year: 53.0 million euros), of theremeasurement of pension obligations through other comprehensive income of 18.7 million euros (prior year: 53.9 million
euros), of the remeasurement of equity instruments throughother comprehensive income of 34.4 million euros (prior year:-16.0 million euros) and of the currency translation of 10.0 million euros (prior year: -4.2 million euros). The equity ratio
increased to 29.5% from 28.9% in the prior year.
The increase in non-current liabilities of 20.0 million
euros to 1,077.9 million euros (prior year: 1,057.9 million euros)
largely resulted from the increase in pension provisions of
33.8 million euros offset against an increase in plan assets of
24.6 million, resulting in a net increase of 9.2 million euros. The
purchase price liability recognized under current financial liabilities in the prior year was reclassified to non-current financial
liabilities on account of a contractual amendment. This liability
amounts to 20.2 million euros. Non-current liabilities to banks
and lease liabilities declined slightly by 3.3 million euros and7.3 million euros respectively. The current and non-current liabilities are mainly denominated in euros.
Current liabilities decreased by 5.4%, from 901.2 million
euros to 852.6 million euros, largely as a result of the decline incurrent liabilities to banks.
The DEKRA Group requires sufficient liquidity for future
investments, which is ensured by promissory notes and by longer-term loan commitments. As of December 31, 2020, there are

D E K R A Financial Report 2020

20

GROUP MANAGEMENT REPORTGROUP MANAGEMENT REPORT

Report on economic position

Risk, opportunities, and forecast report

Risk, opportunities, and forecast reportlines of credit of 450.2 million euros pledged in writing that have
not yet been drawn.

Environment and industry risks

Q U A N T I F I C AT I O N O F R I S K S

Loss potential in % of sales

Summary assessment of financial
position and performance

In respect of the development of revenue and earnings, thetrend for the DEKRA Group’s financial performance in fiscal
year 2020 does not reflect the expectations for the fiscal year
and is largely attributable to the challenging economic conditions prevailing due to the COVID‑19 pandemic. Nevertheless,the financial position and cash flows allow sufficient headroom
for the Group to pursue its goals.

critical/severe>0.6very high>0.35–0.60
medium/moderate>0.15–0.35
minor>0.05–0.15
marginal>0–0.05

RISK , O P P O R T UNI T IE S A ND F O REC AS T REP O R T
RISK REPORT
Systematic management of risks

rareunlikely

0–<10

10–<25

medium/possible25–<50likelyfrequent

50–<7575–100L i ke l i h o o d i n %The risk management process which was realigned in the prioryear and the introduction of an internal risk management software proved their worth in 2020. A risk inventory is now carriedout for the fiscal year in progress and the two subsequent years,
with strategic risks that are cumulative in nature recorded separately. Risks that have already been recorded in the budget are
not included in the risk inventory. The new process also includes
the DEKRA Matrix of regions and Service Divisions. This
allows potential risks to be systematically identified and categorized according to their likelihood as high (dark green), moderate (light green and striped), or low (white). Combined withthe loss potential of individual risks, the expected loss can thus
be calculated.

Urgent need for action

Need for action

Possible need for action

No need for action

The management levels responsible develop prompt countermeasures on the basis of the risk management process. The Management Board is regularly informed through defined reporting
channels. DEKRA communicates particularly urgent issues at
short notice via internal ad hoc announcements. DEKRA’s risk
management system is continuously being adapted in responseto changes in legal and economic conditions. In the following,
we outline and assess the risks that, from today’s perspective,
could have a significant influence on DEKRA’s financial positionand performance. Taking into account the risks recorded in thebudget, on the whole the overall risk exposure has remained
stable compared to the prior year.

D E K R A Financial Report 2020

Disruptive technologies and political, regulatory, and economic
conditions are very important to DEKRA’s success as an expert
organization with global operations. Changes in circumstances
may give rise to risks relating to revenue and income. DEKRA
therefore closely and continuously monitors markets and sectors– particularly with respect to whether and how the developmentof technology could cast doubt on existing business models.
There are further macroeconomic risks on account of
COVID‑19, which will lead to a downturn in global economic
growth and impact the development of DEKRA’s business. For thereporting year 2020, 59 risks relating to COVID-19 were reportedwith a total theoretical expected loss of 13.9 million euros.
The Group regularly reviews and analyzes the financial
impact of the reported risks, the countermeasures that havebeen initiated and the Group’s risk-bearing capacity in respectof their effectiveness. Based on the reported risks and the measures that are in place, the impact is manageable.
Based on current global developments, the Management
Board considers a further worsening of the pandemic situation
possible. In the event that further economic restrictions impact
our key industries and customers, there is currently the risk ofan additional loss potential in 2021 of 20 to 40 million euros.
As in 2020, we are reacting to this risk with corresponding
countermeasures such as adjusting investments.
The business with automotive services is fundamentally
exposed to the regulatory risk of law changes. Following theorganizational realignment under TOM 2020, the regions­Germany, South-West Europe, North-West Europe and Central
East Europe & Middle East are potentially affected. This risk iscurrently deemed to be low. However, fierce competition andchanging technologies in the Vehicle Inspection Service Division pose a moderate risk as cost increases can only be passed
on to the customers to a limited extent. DEKRA lowers this risk
by constantly improving productivity based on optimized processes and new technologies to ensure more road safety andfewer traffic fatalities.
Expectations with respect to the economy also determine
how willing DEKRA’s industrial customers are to invest. The
risk of a drop in orders grows with real or suspected economic
uncertainty. This affects the Product Testing and Industrial

21

Inspection areas, for example, and the regions North-West
Europe, Germany, Southern Africa & Oceania and North
America. DEKRA mitigates these risks, which it classifies as
low, by expanding its service offering and increasing the globalization of its business.
The provision of services in the Training and Temp Work
areas is particularly sensitive to cyclical developments. In boththese business areas, revenue and earnings may be affected byfluctuations in orders caused by cyclical developments. Thisparticularly affects the Germany and ­Central East Europe &Middle East regions. DEKRA combats these risks, which it classifies as moderate, by moving into new markets, broadening its
portfolio of services and making customized offers. New statutory regulations may lead to high risks in the Temp Work­business area. DEKRA is responding to these regulatory interventions in the employee leasing markets by building up its
business with key accounts and by investing in its position as aquality provider.
We expect that the environment and industry risks or market
risks and legal provisions will continue to be the most significant. The following risks are currently considered to be thegreatest risks to earnings:– Disruptive technologies (vehicle inspection, expertise)– Amendments especially to European regulations– Competition and price risks, as well as cyclical and risks
caused by the COVID‑19 pandemic.
On the whole, these risks add up to a total theoretical expected
loss of 92.6 million euros (2019: 114.2 million euros) in 2020.
The structure and distribution of risk for the years 2020, 2021
and 2022 are deemed to be stable.
Business strategy risks

DEKRA hopes that the new TOM 2020 organizational model
will allow it to take better advantage of growth opportunities.
The risk that the stronger focus on internal networking andgreater customer proximity could fail is currently consideredlow. This assessment is based on the professional project management surrounding the introduction of the new organization,

D E K R A Financial Report 2020

22

GROUP MANAGEMENT REPORTGROUP MANAGEMENT REPORT

Risk, opportunities, and forecast report

Risk, opportunities, and forecast reportwhich has already proved its value. DEKRA will also continue
its policy of organic growth supplemented by targeted acquisitions. DEKRA broadens its footprint in terms of both expertiseand geography by means of strategic acquisitions. However, theintegration of acquired companies may fail or be delayed. Budgets may be unrealistic and synergy effects unattainable. Theserisks are judged to be moderate. There are also measurement
risks for capitalized assets. Such risks are considered moderate
overall under the new organizational model for the regions.
Overall, DEKRA counters business strategy risks with professional project and integration management.
The regulatory frameworks in other non-European countries differ from the conditions in Germany and Europe. As aresult, the ongoing internationalization of business entails –albeit low – liability risks and risks to the Group’s reputation.
That is why DEKRA is constantly working to enhance its risk
and compliance management activities. This includes the ongoing adjustment of the liability protection offered by insurance
policies to changing circumstances.
Those responsible identified 100 strategic risks (2019: 41)
that are cumulative in nature. The associated theoretical
expected loss is 116.7 million euros (2019: 88.2 million euros).
These risks can be divided into the categories of digitalization,
new technologies, new competitors, the end of the service/product life cycle or commoditization, regulatory changes and markets. DEKRA pays particular attention to the strategic risks
because they are also associated with substantial opportunities.
Operating risks

Accreditations and official authorizations are important factors
on which DEKRA’s success depends. Risk management plays a
key role in this regard. With an internal monitoring system forsafeguarding service quality and by means of insurance, DEKRA
is able to reduce risks arising from liability for its testing, expertises, certifications and seals. In addition, risks arising frommissing or amended official permits are identified by means ofongoing specialist and legal reviews; this allows changes to laws
and standards to be identified in time and DEKRA services tobe promptly adapted. Particularly important in this context isthe often time-consuming training and education of the­examiners and inspectors as well as the timely planning andprovision of the necessary equipment. The amendments madeby legislators to national regulations in Germany relate specifically to the handling of measuring and testing equipment andinformation provided by car repair shops (e.g., emissions testing). The package of ordinances adopted by the Bundesrat provides for a transition period until June 2022 by which time all of
the requirements have to be implemented. In Germany, national
requirements governing main inspections require that testing
and measuring equipment be regularly gaged, calibrated andindividually tested in accordance with various different standards. The services to be audited by DAkkS must have comprehensive evidence of their ISO conformity. This applies for calibrations and information provided by car repair shops.
DEKRA has developed all the necessary calibration procedures to such an extent that all accreditations by DAkkS havebeen completed successfully. The measures needed to adjust
and fully implement the accredited calibration procedure havebeen initiated.
DEKRA was already able to successfully complete the certification procedure in 2020.
One element for the worldwide identification and assessment of risks from accreditations, internal process risks as well
as for monitoring the compliance of internal basic processes isthe control self-assessment. This is carried out in parallel withrisk management surveys and results in the aforementioned risk
inventory that lists and evaluates internal process risks andmarket risks.
Overall, the risk of approvals based on accreditations
being revoked is classified as low due to the extensive precautionary and risk mitigation measures.
Personnel risks

In the area of personnel, there is a moderate risk in the form ofdependency on individual employees who, with their know-how,play a key role in the success of individual business segments.
This risk is minimized, among other things, by a globally integrated talent and performance process. Attractive personnel
development programs also help retain know-how and top­performers within the Group. Moderate personnel risks can also

D E K R A Financial Report 2020

arise if the Group fails to integrate the employees of acquired
businesses, which is why quick and systematic post-merger integration takes top priority. For DEKRA’s business success, it isalso important to attract ambitious professionals and qualified
young employees. That is why DEKRA invests regularly in its
appeal as an employer, thereby further reducing the low risk of
not having the personnel necessary for further expansion.
IT risks

For a company that operates in around 60 countries, IT security and data protection are of utmost importance. DEKRA
mitigates the medium risks associated with the reliability andsecurity of its IT systems by investing in modern IT infrastructure. DEKRA counters the risk of critical data becoming damaged or lost or getting into the hands of unauthorized third
parties by constantly monitoring and assessing IT risks as partof its internal control system, risk management, and compliance management. Risks of penalty payments and damage to
the Company’s reputation, which have arisen in the field of
data protection following the entry into force of the GDPR, areclassed as low thanks to the Company’s adequate data protection processes, which are constantly being revised.
Financial risks

Although there is a certain risk of bad debts and late payments,
it is deemed to be low. DEKRA protects itself from default bymeans of active customer and contract management, global key
account management and thorough creditworthiness checks.
By planning ahead, DEKRA is also able to reduce the interest
rate risk. As most of DEKRA’s transactions are conducted ineuros, the exchange rate risk is low. Debt financing of the Groupis primarily provided by loans against a promissory note as wellas through approved bank loans. Interest derivatives are used
for floating rate loans in order to minimize the interest rate risk
inherent in the financing of the Group. The portfolio of interest
derivatives as of the reporting date amounts to 4.0 million euros(prior year: 14.0 million euros).
The liquidity headroom required for the operating business is secured by means of cash and cash equivalents, as well
as via approved lines of credit at DEKRA SE. The central cash

23

pool is used to control the liquidity and supply of both thenational and increasingly also the international subsidiaries.
The resulting transparency prevents possible risks. Short-term
investments of cash and cash equivalents are only made with
top-rated financial institutions and on the basis of current ratings from rating agencies as well as taking into account current
CDS spreads.
The risk of DEKRA being unable to fulfill its payment
obligations in connection with financial instruments in the
future is also classed as low.
Overall assessment of the Management Board on risks to
the Group’s ability to continue as a going concern

The profile and structure of DEKRA’s risks, as well as its ability
to withstand risk and the distribution of risk between the individual entities, are stable, and measures are defined to limit thelevel of risk. The strategic risks are currently manageable on thebasis of the projects and measures that have been initiated andplanned (Business Development). Provided these are implemented consistently, and with a focus on strategic opportunities
and risks, the Management Board considers the risk profile tobe reasonable. Due to the strong equity, the sophisticated business models, the broad portfolio and the solid financing structure, the sum total of the individual risks does not endanger theability of DEKRA to continue as a going concern in any way.
There are currently no identifiable risks to the Company’s ability to continue as a going concern.
OPPORTUNITIES REPORT
Environment and industry opportunities

Safety is a basic necessity for people across the entire globe. Thisis also reflected in the increase in demand for tests, certifications and inspections in the industrial and private sectors. The
demand for corresponding services is not only growing further
in western industrial nations, but also in the developing andemerging economies. Due to its strong global network and organizational enhancement TOM 2020, DEKRA is positioned forfurther growth in the three areas of life “on the road, at workand at home.”

D E K R A Financial Report 2020

24

GROUP MANAGEMENT REPORTGROUP MANAGEMENT REPORT

Risk, opportunities, and forecast report

Risk, opportunities, and forecast report

IT opportunities

Digitalization is changing customers’ needs in the TIC market
in an unprecedented depth and speed. The COVID‑19 pandemic has shown that it is necessary to actively use the digitaltransformation opportunities and align the whole company
toward this objective. In this way it can be ensured that DEKRA
will remain a globally recognized partner for testing, certification and inspection of intelligent and connected products orservices in the future – which will mostly be fully digital andwill, for example, develop away from periodic tests and certification toward permanent monitoring.
This means that DEKRA will have to intensify its own
digitalization and innovation activities, expand new digitalcompetencies, and further develop existing services: from modern IT, new ways of working, to digital interaction and innovation through to data-driven services.
The most promising levers to transform DEKRA into a
digital expert organization are the relevant technologies andtrends: Internet of Things (IoT), artificial intelligence (AI), bigdata, new forms of mobility, cyber security, and augmented or
virtual reality. The innovation projects planned with the aid of
these technologies are oriented toward future scenarios in thenext five to ten years and allow opportunities from digitalization to be exploited across the Group.
Strategic opportunities

Various dynamics will significantly shape the global testing,certification and inspection market in the coming years. Thesedevelopments present major corporate strategic opportunities
for DEKRA: High market growth in East & South Asia, contribution to future mobility concepts (CASE – connected, autonomous, sharing and electric vehicles), digitalization of the product portfolio and long-term effects of the COVID‑19 pandemic.
The further growth in the Asia-Pacific region (APAC) normally results in more regulations and higher standards. This isdue to the fact that many economically advanced countries
operate their production facilities in the emerging economiesof the APAC and are obliged to manufacture products in compliance with internationally recognized standards. In addition,a strongly expanding middle class and the associated consumerawareness in regards to private consumption lead to an increasein demand both for safety and product quality. This makes themarket for the offered services of testing, inspection and certification more attractive. In China, Germany is considered amodel for quality and technical know-how. These market circumstances are ideal for DEKRA to position itself as a reliable
partner for all safety-related matters in the region. Moreover,future-oriented investments were made in the past by expanding the product testing laboratories in the DEKRA region East
& South Asia and by entering into vehicle inspection in China.
Furthermore, DEKRA’s international network of test laboratories already enables customers in Asia to provide global
services for the growing e-mobility and autonomous driving
sector today.
CASE: Connected, automated, shared and electric mobility(CASE) will be a main growth area for the automotive industry,
the related OEMs, and other technology partners in the coming
years. It can be expected that the growing number of electricvehicles will very heavily influence the increasing consumerawareness of product quality and safety. New providers areentering the market with innovative concepts and require support with regulations and standards. Testing facilities and laboratories should be located close to their development centers inorder to drive forward product development. With its worldwide
network of testing stations and test laboratories, DEKRA is in aposition to ensure safety when it comes to the human handlingof technology and the environment. Furthermore, the need forcyber security services will increase due to the proliferation ofconnected devices. This gives DEKRA access to new growth
opportunities in the area of the automotive industry, alternative
mobility providers and also from regulatory authorities. DEKRA
can cover the entire range of services internationally, which are
related to market introduction of vehicles, creation of a safer
infrastructure, regulation and the safety of products.
Digitalization of the global product portfolio: Digitalizationof products and processes is increasing rapidly in many

D E K R A Financial Report 2020i­ ndustries and regions. The integration of new technologies suchas the IoT and AI in electronic components results in a stronger
demand for product tests. An example is the testing of AR/VR
technology (augmented/virtual reality). Test procedures must
be developed for this purpose in order to ensure that a device
works properly and is compatible with other devices. Furthermore, it can be expected that the demand for software and cybersecurity tests within the TIC sector will increase as many sectors have a greater need to safeguard their growing digital business. New digital services will replace conventional services.
Further development of products and services is ensured by the
DEKRA Service Divisions – assisted by DEKRA Digital basedin ­Germany.
Effects of COVID‑19: One of the lasting effects of the COVID‑19

pandemic is the change in personal and professional behavior.
Risk management is being taken more seriously across industries and also personally, leading to a demand for more testingand inspection services (e.g., reliability of the supply chain,safety at the workplace or in hotels). This trend will continue
beyond the crisis. DEKRA already offers tailor-made certification solutions for supply chains or hygiene concepts in hotels in
Europe and North America, and can further globalize theseconcepts. It can also be assumed that the increase in safety
awareness will also result in a higher demand for testing services from the healthcare sector in the coming years. DEKRA
is well-positioned due to its global network of medical testing
facilities. Many companies worldwide have increased their production of medical devices (e.g., ventilators or respiratory
masks), which offers DEKRA opportunities for testing and certifying these medical devices. Testing of masks in laboratories
in Germany or testing of medical devices in DEKRA’s laboratories in Germany, North America, the Netherlands, Israel andChina offer opportunities that can be expanded further.
Operating opportunities

Through its strategic acquisitions and globalization in recent
years, DEKRA is set for further growth. Further regional
expansion and market consolidation at a global level must be

25

considered in order to lead the way in the TIC industry. As themarkets in Asia, North America and in the emerging countries
are showing a trend toward rising demand for services and solutions, demand is higher than supply. Demand for modern technologies in vehicle inspection and other market segments willbe also important for DEKRA in Europe and North America.
Moreover, major multinational enterprises worldwide require
TIC services with consistent service quality. This will makeglobal key account management for DEKRA even more important.
FORECAST REPORT
Challenging environment

The economic environment is expected to recover slightly in
2021, but will be characterized by volatility and differing trends
between regions. According to estimates by the World Bank,
global GDP will increase by 4%. The developing and emerging
economies are expected to record growth of 3.4% while in the
USA and the euro zone, growth of 3.5% and 3.6% is expected
respectively. For China, growth of 7.9% is expected.
The fact that the underlying economic conditions are
becoming more challenging is primarily attributable to theongoing COVID‑19 pandemic and geopolitical challenges. In
the meantime, protectionist efforts have led to trade barriers
between markets and regions. Political instability in key economic areas is increasingly weighing on development. DEKRA
is not immune to this. Thanks to its good international positioning and the strong basic human need for safety, DEKRA nevertheless expects slight growth. However, depending on the further impact of the COVID‑19 pandemic, the extent of thisgrowth may vary within each individual Service Division. Revenue is expected to increase by 3% to 4% in fiscal year 2021.
Organic growth is expected to be higher than external growth
driven by acquisitions. The planning for 2021 also includes aslight increase in EBIT. To achieve this, DEKRA will expand its
activities in high-margin business activities, exploit synergies
within and between its divisions, and continue to optimize theglobal structures and processes in sales and the Service Divisions. The headcount is also expected to continue to rise in line

D E K R A Financial Report 2020

26

GROUP MANAGEMENT REPORT﻿with revenue growth. DEKRA expects the number of its employees to increase by between 1,000 and 1,500 as of year-end 2021.
The resilience and forward-looking approach we have demonstrated in 2020 reinforces our “Vision 2025.” By 2025, when
DEKRA will celebrate its 100th anniversary, we will have digitalized our entire service portfolio and be the global partner fora safe world.
Stuttgart, March 29, 2021
DEKRA SEThe Management Board  Kölbl, Chairman  Linsenmaier  Rauh  Zurkiewicz

D E K R A Financial Report 2020

28

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S﻿﻿CONSOLIDATED FINANCIAL STATEMENTSC O N T EN T S

DEKRA SECONSOLIDATED STATEMENT OFCOMPREHENSIVE INCOME FORFISCAL YEAR 2020
Notes

2020

2019

5.1

3,188,234

3,408,962

Increase in inventories of work in process

1,327

1,141

Own work capitalized

10,135

8,454

57,16937,194

IN THOUSAND EUR

2 9 		C O NS O L IDAT ED S TAT EMEN T O F C O MP REHENSI V E IN C O ME

3 0		

C O NS O L IDAT ED S TAT EMEN T O F FIN A N C I A L P O SI T I O N

3 2		

C O NS O L IDAT ED S TAT EMEN T O F C H A N G E S IN EQ UI T Y

29Revenue

Other operating income

5.2

Cost of materials

5.3–314,480–332,891

Personnel expenses

5.4–2,101,363–2,227,854

Other operating expenses

5.5–474,369–498,273

3 4		

C O NS O L IDAT ED S TAT EMEN T O F C ASH FL O WS

3 6 		N O T E S T O T HE C O NS O L IDAT ED FIN A N C I A L S TAT EMEN T S

Amortization and depreciation of intangible assets,right-of-use assets, and property, plant and equipment

5.6–204,281–194,902

36

1 General comments

36

2 Accounting principles

Profit/loss from financial assets accounted for using the equity
method

5.7

840

531

36

3 Accounting policies

Interest income

5.7

6,747

4,988

Interest expense

5.7–24,376–25,980

Other financial result

5.7

1,311

220

5.7

–15,478–20,24150

4 Business combinations

51

5 Statement of comprehensive income/income statement

56

6 Statement of financial position

Financial result

74

7 Statement of cash flows

Earnings before taxes

76

8 Other disclosures in the notes

Income taxes

78

9 Capital management78

10 Financial management

Net income for the year88

11 Related parties

90

12 Disclosures on the Management Board and Supervisory Board

91

13 Subsequent events

91

14 Other disclosures

Hedging instruments at fair value throughother comprehensive income

1 0 0		IND EP END EN T AUD I T O R’S REP O R T

Deferred taxes recognized through other comprehensive income

1 0 4 		REP O R T FR O M T HE C H A IRM A N O F T HE SUP ER V IS O RY B OA RD

146,894

181,590

5.8–53,002–61,757

5.9

93,892

119,833

thereof attributable to owners of DEKRA SE

6.12

93,261

118,606

thereof attributable to non-controlling interests

6.13

631

1,227

6.16

40

26

5.8

–12

–8

5.9

–10,042

4,193–10,014

4,211

Net loss/gain on the provision forTranslation reserve
Items that can be recycled through profit or loss in the future
Net loss/gain on the provision for
Remeasurement of defined benefit plans

6.14–26,715–78,866

Equity instruments at fair value through other comprehensive
income6.5–34,418

15,988Deferred taxes recognized through other comprehensive income

5.8

8,036

24,939Items that will not be recycled through profit or loss in future–53,097–37,939

Other comprehensive income–63,111–33,728

Total comprehensive income

30,781

86,10530,15084,878631

1,227

thereof attributable to
Owners of DEKRA SE
Non-controlling interests

D E K R A Financial Report 2020

D E K R A Financial Report 2020

30

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

﻿

﻿

31

DEKRA SECONSOLIDATED STATEMENT
OF FINANCIAL POSITION AS OF
DECEMBER 31, 2020
ASSETS

Notes

IN THOUSAND EUR

Dec. 31, 2020

Dec. 31, 2019Non-current assets

E Q U I T Y A N D L I A B IL I T IE S IN THOUSAND EUR

Notes

Dec. 31, 2020

Dec. 31, 2019

EquityIntangible assets

6.1/6.2

721,862736,565

Issued capital

6.12

25,56525,565Right-of-use assets

8.1

352,173

346,788

Capital reserve

6.12

610,529585,529

Property, plant and equipment

6.3

432,045

419,023

Revenue reserves

6.12

504,571453,048

Financial assets accounted for using the equity method

6.4

13,11912,266

Accumulated other comprehensive income

6.12–345,058–281,660

Other non-current financial assets

6.5

64,555

97,230Total equity of the owner795,607782,482

Other non-current assets

6.6

9,789

8,701

Non-controlling interests

12,89913,834

Deferred income tax assets

5.8

808,506

796,316

540,182

530,971

181,750

176,109

1,775,293

1,796,682

6.13

Liabilities
Non-current liabilities

Current assets
11,210

Provisions for pensions and similar obligations

6.14

55,67770,446

Other non-current provisions

6.15

19,814

15,914454,497

498,034

Non-current financial liabilities

6.16

488,362

478,793

221,136

231,291

Other non-current liabilities

6.18

1,992

2,486

6.10

34,16434,437

Deferred income tax liabilities

5.8

5.8

9,832

21,015Inventories

6.7

Contract assets

6.8

Trade receivables

6.8

Other current financial assets

6.9

Other current assets
Current income tax receivables
Cash and cash equivalents

6.11

Total assets

20,927

167,472

92,309963,705

958,7422,738,998

D E K R A Financial Report 2020

2,755,424

27,58329,7781,077,933

1,057,942

Current liabilities
Other current provisions

6.15

27,607

24,917

Trade payables

6.17

113,554

112,219

Contract liabilities

6.17

54,67145,449Current financial liabilities

6.16

279,877

367,513

Other current liabilities

6.18

370,465

346,017

Current income tax liabilities

5.8

6,385

5,051

852,559

901,166

Total liabilities

1,930,492

1,959,108

Total equity and liabilities

2,738,998

2,755,424

D E K R A Financial Report 2020

32

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

﻿

﻿

33

DEKRA SECONSOLIDATED STATEMENTOF CHANGES IN EQUITY 2020

IN THOUSAND EUR

Accumulated other comprehensive income

EquityGroup equity

Issued capital

Capital reserve

Revenue reserve

Translation reserve

Equity instruments
at fair value throughother comprehensive
incomeHedging instruments
at fair value throughother comprehensive
incomeRemeasurementof defined
benefit plans

OwnersNon-controllinginterests

25,565560,529

385,178–17,258

37,679–87–268,267

723,339

12,315735,654–53,014–96–53,11025,000025,000

As of Dec. 31, 2018
Profit and loss transfer agreement/dividend distribution–53,014

Capital increase

25,000

Other changes
Changes to the consolidated group2,278

Consolidated net income for the year

118,606

Other comprehensive income for the period
Total comprehensive income
As of Dec. 31, 2019

2,278

118,606

1,227

119,833

4,193

15,98819–53,927–33,727

0–33,727

118,606

4,193

15,98819–53,927

84,8791,227

86,10625,565585,529453,048–13,065

53,667–68–322,194782,482

13,834

796,316–34,862–1,226–36,088

25,000025,000–34,862
25,000

Other changes–80

Changes to the consolidated group–6,796

Consolidated net income for the year

93,261Other comprehensive income for the period

D E K R A Financial Report 2020

388

0

0

Capital increase

As of Dec. 31, 2020

388

0Profit and loss transfer agreement/dividend distribution

Total comprehensive income

0
2,278

–279

2

–8

–80

–281

–361

–7,081–59–7,14093,261631

93,8920–10,043–34,41828–18,680–63,1130–63,1130093,261–10,043–34,41828–18,680

30,148631

30,77925,565

610,529504,571–23,387

19,251–40–340,882

795,607

12,899808,506

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﻿

﻿

35

DEKRA SECONSOLIDATED STATEMENT OF
CASH FLOWS FOR FISCAL YEAR 2020

O P E R AT IN G AC T I V I T IE S IN THOUSAND EUR

2020

2019

Consolidated net income for the year

93,891

119,833

Depreciation/amortization/impairment losses/reversals of impairment losses

203,025

194,925

F IN A N C IN G AC T I V I T IE S IN THOUSAND EUR

2020

2019

Cash received from equity contributions from owners

25,00025,000Cash paid to owners and non-controlling interests from profit transfers/dividends–54,231–37,569

22,486–36,903–181,885–40,135

Cash received/paid in relation to loans to owners

Gain/loss from the disposal of financial and intangible
assets and property, plant and equipment–341–2,255

Cash repayments of loans

Interest income/expenses and dividends

5,482

10,203

Cash received from borrowing

77,42326,497–95,147–100,752–10,249–14,413–216,603–178,275

2020

2019

74,515

10,447648

3,369

92,30978,493

167,472

92,309Current income taxes

53,03462,206

Cash repayments of lease liabilities

Change in non-current provisions–14,440–16,075

Interest paid

Other non-cash expenses/income

18,51927,439Cash flow from financing activities

Change in inventories, receivables and other assets

51,979–12,377

Change in liabilities and current provisions

52,657

21,344

Profit or loss from associates–942–1,036

Interest received

3,234

3,771

–53,311–65,070

0

62

271

348

413,058

343,318

2020

2019

–96,691–139,411

Taxes paid
Taxes received
Dividends received
Cash flow from operating activities

IN V E S T IN G AC T I V I T IE S IN THOUSAND EUR

CASH AND CASH EQUIVALENTS

IN THOUSAND EUR

Changes in cash and cash equivalents
Changes in cash and cash equivalents due to exchange rates andchanges in the consolidated group
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

Cash paid for investments in
Intangible assets and property, plant and equipment
Financial assets and other assets–16,828–13,879

Subsidiaries and other business entities–18,397–15,154

Intangible assets and property, plant and equipment

7,088

11,184

Financial assets and other assets

2,697

2,664

191

0

–121,940–154,596

Cash received from disposals of

Subsidiaries and other business entities
Cash flow from investing activities

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Notes

Notes

37

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS OF DEKRA SE,
STUTTGART, FOR FISCAL YEAR 2020
1 G ENER A L C O MMEN T S

2 AC C O UN T IN G P RIN C IP L E S

DEKRA SE has its registered office at Handwerkstrasse 15 in
Stuttgart, Germany, and is entered in the commercial register
at Stuttgart local court under HRB no. 734316.
DEKRA is an international, independent expert organization operating in the areas of Vehicle Inspection, Claims &Expertise, Product Testing, Industrial Inspection, Consulting,
Audits, Training and Temp Work.
The consolidated financial statements as of December 31,
2020 include DEKRA SE and its consolidated subsidiaries.
The Management Board authorized the issue of the consolidated financial statements of DEKRA SE for the fiscal year fromJanuary 1 to December 31, 2020 on March 29, 2021 and presented
them to the Supervisory Board for review and approval.
The prior-year financial statements and management
report were filed for publication in the Bundesanzeiger[German Federal Gazette] in the reporting year.
All shares in DEKRA SE are held by DEKRA e.V., Stuttgart.
DEKRA e.V., Stuttgart, is also the ultimate parent of the Company.

The Company’s consolidated financial statements are preparedin accordance with International Financial Reporting Standards(IFRSs) as adopted by the European Union at the end of thereporting period, and the additional requirements of Germancommercial law pursuant to Sec. 315e (1) HGB [“Handelsgesetzbuch”: German Commercial Code].
The principles of the Frameworks and the IFRS of theInternational Accounting Standards Board (IASB) as well as theinterpretations of the IFRS Interpretations Committee effective
as of the reporting date were applied.
Information on the adoption of specific IFRS is provided
in the comments on the individual items of the statement offinancial position later on in these notes.
The consolidated financial statements are presented ineuros. Unless otherwise stated, all amounts have been roundedup or down to the nearest thousand euros in accordance withcustomary commercial practice.
The consolidated financial statements comply with therequirements of Sec. 315e (3) HGB.

3 AC C O UN T IN G P O L I C IE S
The accounting policies adopted are consistent with those of theprevious reporting period. In addition, the new or revised
standards that were subject to mandatory adoption for the firsttime in fiscal year 2020 in accordance with the respective transitional provisions are presented below.

D E K R A Financial Report 2020

S TA N D A R D/ I N T E R P R E TAT I O N ;E F F E C T I V E D AT E

I M PA C T O N T H E C O N S O L I D AT E D
F I N A N C I A L S TAT E M E N T S O F D E K R A S E

The following IFRS standards
and interpretations were subject
to mandatory application for
the first time in the fiscal year:

IAS 1, IAS 8
Definition of Materiality
January 1, 2020

The amendments provide a new definition of material that states, “information is material if omitting, misstating or obscuring it could reasonably be expected to influence
decisions that the primary users of general purpose financial statements make on thebasis of those financial statements, which provide financial information about a specific reporting entity.” The amendments clarify that materiality will depend on thenature or magnitude of information, either individually or in combination with otherinformation, in the context of the financial statements. These amendments had no
impact on the consolidated financial statements of the Group, nor is there expected
to be any future impact on it.

IFRS 3
Definition of a Business
January 1, 2020

The amendment to IFRS 3 “Business Combinations” clarifies that to be considered abusiness, an integrated set of activities and assets must include, at a minimum, an
input and a substantive process that, together, significantly contribute to the ability
to create output. Furthermore, it clarifies that a business can exist without including
all of the inputs and processes needed to create outputs. These amendments had no
impact on the consolidated financial statements of the Group, but may impact future
periods should the Group enter into any business combinations.

IFRS 7, IFRS 9, IAS 39
Interest Rate Benchmark Reform
January 1, 2020

The amendments to IFRS 9 and IAS 39 “Financial Instruments: Recognition and­Measurement” provide a number of reliefs, which apply to all hedging relationshipsthat are directly affected by the interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainty about the timing and/or amountof benchmark-based cash flows of the hedged item or the hedging instrument.
The amendments are relevant to the Group as it recognizes hedges for interest raterisks, which are based on reference interest rates. In respect of the recognition ofhedges (interest rate swaps and promissory notes), only the methodology for calculating the EURIBOR has changed. In July 2019, the Belgian regulatory agency (Financial
Services and Markets Authority) issued an authorization in respect of the EURIBOR
pursuant to the EU Benchmarks Regulation. This allows market participants to continue to use the EURIBOR for both existing and new contracts. The Group anticipatesthat the EURIBOR will continue to be used as a reference rate for the foreseeable future.
Please refer to note 10 “Financial management” for more information

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S TA N D A R D/ I N T E R P R E TAT I O N ;E F F E C T I V E D AT E

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

Notes

Notes

I M PA C T O N T H E C O N S O L I D AT E D
F I N A N C I A L S TAT E M E N T S O F D E K R A S E

The following IFRS standards
and interpretations were subject
to mandatory application for
the first time in the fiscal year:

IFRS 16
Practical Expedient for Concessions
for Rental Payments;
June 1, 2020

The amendments apply to annual reporting periods beginning on or after June 1, 2020.
Earlier application is permitted. In the fiscal year, COVID‑19-related rent concessions
were granted on the Group’s own rental relationships. The practical expedient was
exercised for these rental relationships, and the assessment as to whether a pandemicrelated rental concession of a lessor represents an amendment to the lease agreement
was suspended. These were classified accordingly as negative variable lease payments
and recognized through profit and loss in other operating income.
Conceptual Framework
for Financial Reporting issued
on March 29, 2018

The IASB and the IFRS IC have issued the standards, interpretations and amendments listed below that were not yet mandatory
as of December 31, 2020. There are no plans to early adopt these new pronouncements.

S TA NDA R D/IN T E R P R E TAT I O N;
E F F EC T I V E DAT EOn May 28, 2020, the IASB issued COVID‑19-Related Rent Concessions – Amendment
to IFRS 16 Leases. The amendments provide relief to lessees from applying IFRS 16
guidance on lease modification accounting for rent concessions arising as a directconsequence of the COVID‑19 pandemic. As a practical expedient, a lessee may electnot to assess whether a COVID‑19-related rent concession from a lessor is a lease modification. A lessee that makes this choice accounts for any change in lease payments
resulting from the COVID‑19-related rent concession the same way it would accountfor the change under IFRS 16, if the change were not a lease modification.

The Conceptual Framework is not a standard, and none of the concepts contained
therein override the concepts or requirements in any standard. The purpose of theConceptual Framework is to assist the IASB in developing standards, to help preparers
develop consistent accounting policies where there is no applicable standard in place
and to assist all parties to understand and interpret the standards. This will affectthose entities which developed their accounting policies based on the Conceptual
Framework. The revised Conceptual Framework includes some new concepts, updated
definitions and recognition criteria for assets and liabilities and clarifies some important concepts. These amendments had no impact on the consolidated financial statements of the Group.

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39

ADOPTED BY THE
EU COMMISSIONA N T I C IPAT E D IMPAC T O N T HE C O N S O L IDAT E D F IN A N C I A L S TAT E ME N T S
OF DEKRA SEIFRS 17
Insurance Contracts;
January 1, 2023

No

Currently being assessed

Amendments to IAS 1:
Classification of Liabilities as
Current or Non-current; Change
from “significant” to “material”;
January 1, 2023

No

Currently being assessed

Amendment to IAS 8:
Definition of Accounting Estimates
January 1, 2023

No

Currently being assessed

Amendment to IAS 16:
Proceeds before Intended Use;
January 1, 2022

No

No significant effects

Amendment to IAS 37:
Onerous Contracts –Cost of Fulfilling a Contract;
January 1, 2022

No

No significant effects

Amendment to IAS 41:
Taxation in Fair Value
Measurements;
January 1, 2022

No

No effects

Amendment to IFRS 1:
Subsidiary as a First-time Adopter;
January 1, 2022

No

No significant effects

Amendment to IFRS 3:
Reference to theConceptual Framework;
January 1, 2022

No

No significant effects

Amendment to IFRS 9:
Fees in the ‘10 per cent’ Test for
Derecognition of Financial Liabilities;
January 1, 2022

No

No significant effects

Amended standards
and interpretations:

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Notes

Notes

3.1 PRINCIPLES OF CONSOLIDATION

All companies over which the Group’s ultimate parent exercises
direct or indirect control are included in full in the consolidated
financial statements. Control is assumed as soon as the parent
company has decision-making power over the subsidiary due
to voting or other rights, is exposed to, or has rights to, variable
returns from the subsidiary and has the ability to affect those
returns through its power over the investee. First-time consolidation is carried out as of the date on which DEKRA SE obtains
control of the subsidiary. The subsidiary is removed from theconsolidated group as soon as control ends.
During the reporting period and as of the reporting date,there were no joint ventures or joint operations which would have
had to be consolidated using the equity method or with their pro
rata assets and liabilities as well as income and expenses.
Associates are accounted for using the equity method. An
associate is an entity over which the owner exercises significant
influence, but that is neither a subsidiary nor a joint venture orjoint operation. In the consolidated financial statements of
DEKRA SE, a total of two German (prior year: two) companies
were consolidated using the equity method. These companies
were capitalized at cost. Subsequently, the carrying amounts ofthe equity investments are increased or reduced each year by
the proportionate share of profit or loss, dividends distributedor other changes in equity. The principles of purchase price allocation for full consolidation apply in the same way to the initial
measurement of investments. Goodwill relating to the associate
is included in the carrying amount of the investment and is notamortized. As of each reporting date, DEKRA tests whether the
carrying amount is impaired pursuant to IAS 36.
Subsidiaries, joint ventures, joint operations and associates that are immaterial for the Group and the presentation ofa true and fair view of the financial position and performance
have generally been included in the consolidated financial statements at fair value.

Non-controlling interests in the total comprehensive
income and equity of subsidiaries are presented separately inthe statement of comprehensive income and in equity. On
acquisition of control, non-controlling interests are generally
recognized at their proportionate share of the identifiable net
assets measured at fair value.
The consolidated group included DEKRA SE and theother entities listed in “Other Disclosures” accordingly as ofDecember 31, 2020. The financial statements of the individual
subsidiaries are included in the consolidated financial statements as of December 31, 2020 using the uniform accounting
policies stipulated by DEKRA SE. In addition to DEKRA SE,
Stuttgart, a total of 23 German (prior year: 23) and 133 foreign(prior year: 133) entities are included.
Effects of first-time inclusion of previously immaterial
subsidiaries and associates are recognized in the statement ofchanges in equity under changes to the consolidated group.
Business combinations are accounted for using the acquisition method on the basis of carrying amounts as of the date oftransfer of control (IFRS 3). Where there are non-controlling interests, a proportionate share of goodwill in accordance with IFRS 3(purchased goodwill method) has always been recorded to date.
In the course of business combinations, sometimes arrangements are made concerning contingent consideration, and call andput options are sometimes agreed with non-controlling interests
with respect to those interests. These obligations are included in
the purchase price calculation at their estimated fair value. On theequity and liabilities side, a financial liability is recognized pursuant to IAS 32. Changes in fair value in subsequent periods arerecognized with an effect on profit or loss. In the case of call andput options, the acquiree is included in the consolidated financial
statements in full and no non-controlling interests are presented.
Transactions between the consolidated entities are netted.
Profits from intercompany transactions are eliminated. Effectsof consolidation on income taxes are accounted for by recognizing deferred taxes.

D E K R A Financial Report 2020

Currency translation

The consolidated financial statements of DEKRA SE are presented in euros. The concept of a functional currency is applied
when translating financial statements of consolidated entities
prepared in foreign currencies. The functional currency is generally the local currency of the respective subsidiary. Assets andliabilities are translated at the closing rate, expenses and income
at the annual average rate. The items within equity are carriedat historical rates. The resulting difference is recognized directlyin equity and presented separately in the statement of comprehensive income.
In the separate financial statements of the subsidiaries, business transactions in foreign currencies are translated using theexchange rate on the date of the transaction. Pursuant to IFRIC
1 EURO =41

22, assets as well as expenses and income arising from the payment
or receipt of advance consideration, and which are not measured
at fair value upon initial recognition, are translated at the exchange
rate at which the payment or receipt of advance consideration has
been recognized for the first time. In subsequent periods, monetary assets and liabilities in foreign currencies are translated at theexchange rate as of the reporting date. Translation differences are
generally recorded in the statement of comprehensive income
under “Other operating income” or “Other operating expenses.”In the case of financial receivables and liabilities, exchange rate
effects are disclosed in the financial result. Non-monetary assets
and liabilities are not generally remeasured in subsequent periods.
The following table shows the exchange rates of material
entities listed in foreign currencies.
RATE AS OF REPORTING DATEANNUAL AVERAGE RATE

Dec. 31, 2020

Dec. 31, 2019

2020

2019

Brazilian real (BRL)

6.37354.51575.88944.4135

Czech koruna (CZK)

26.2420

25.4080

26.4555

25.6698

Chinese renminbi (CNY)8.02257.82057.87087.7339Danish krone (DKK)

7.44097.47157.45447.4661Pound sterling (GBP)

0.89900.85080.88920.8773

Croatian kuna (HRK)

7.55197.43957.53847.4182

Hungarian forint (HUF)

363.8900

330.5300

351.2050

325.2308

Moroccan dirham (MAD)10.9034

10.729310.7230

10.6888

New Zealand dollar (NZD)

1.6984

1.66531.7565

1.6993

Hong Kong dollar (HKD)

9.51428.74738.85178.7724

Polish zloty (PLN)

4.55974.25684.4432

4.2979Swedish krona (SEK)

10.0343

10.4468

10.4881

10.5867

US dollar (USD)

1.2271

1.12341.1413

1.1196South African rand (ZAR)

18.0219

15.7773

18.7685

16.1731

Taiwan dollar (TWD)

34.370733.6334

33.5752

34.5772

Swiss franc (CHF)

1.0802

1.08541.0703

1.1127

Japanese yen (JPY)126.4900

121.9400

121.7758

122.0567

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Notes

Notes

3.2 SIGNIFICANT ACCOUNTING POLICIESProperty, plant and equipment

The financial statements have been prepared on a cost basis,
except for financial instruments classified as “at fair value
through profit and loss or other comprehensive income” pursuant to IFRS 9 as well as derivative financial instruments designated as part of an effective hedge. At the DEKRA Group, thisprimarily includes investments in non-consolidated subsidiaries,
securities, obligations from options and contingent purchaseprice elements as well as interest derivatives.

Pursuant to IAS 16, property, plant and equipment are recognized at cost less accumulated depreciation. If there are indications of impairment and the recoverable amount is below thecost less any accumulated depreciation and impairment losses,
then an impairment loss is recognized.
Costs of conversion include direct materials and laborcosts as well as production overheads. Subsequent costs are capitalized when it is probable that future economic benefits, inexcess of the originally assessed standard of performance of theasset, will flow to the Company. All other subsequent expenditure is recognized directly as an expense. Maintenance expenses
are recognized through profit or loss in the statement of comprehensive income.
Property, plant and equipment are depreciated on astraight-line basis over the economic useful lives of the individual components. The useful lives of buildings and their individual components are between ten and 50 years, plant andmachinery between ten and 25 years, and furniture and fixtures
between three and 20 years. There were no significant residual
values within the meaning of IAS 16.53 to be taken into accountin the calculation of the depreciation charge.
Gains and losses from the disposal of non-current assets
are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognized in
the statement of comprehensive income under other operating
income or other operating expenses.
Pursuant to the revised IAS 23, borrowing costs are capitalized only if they are incurred for the financing of the acquisition, construction or production of a qualifying asset. A qualifying asset is an asset that necessarily takes a substantial periodof time to make ready for its intended use or sale.

Goodwill

The amount by which the purchase price of a business combination exceeds the fair value of the individually identifiableacquired net assets is recognized as goodwill. Incidental acquisition costs are recognized in profit or loss.
Under IAS 38, goodwill from acquisition accounting is
not amortized. Where necessary, impairment losses are recognized in accordance with IAS 36 (impairment only approach).
Intangible assets

Acquired intangible assets are recognized at cost less any accumulated amortization.
Internally generated intangible assets such as software arestated at cost if they meet the recognition criteria under IAS 38.
Cost includes directly and indirectly allocable costs. Researchcosts are treated as period expenses and were immaterial in thepast fiscal year. Borrowing costs are capitalized if they relate toa qualifying asset.
The useful lives of all intangible assets are classified as
finite and are generally between three and eight years. Useful
lives of trademarks or customer relationships of ten to 15 years
are used for purchase price allocations. Intangible assets areamortized using the straight-line method. Where necessary,
impairment losses are recognized, and then reversed if the reasons for the impairment cease to apply at a later date.

D E K R A Financial Report 2020

LeasesLeases as lessee

As lessee, the Group leases real estate, technical equipment aswell as IT and furniture and fixtures. Pursuant to IFRS 16, theGroup accounts for right-of-use assets and lease liabilities formost of these lease agreements, i.e., these lease agreements arerecognized in the statement of financial position. Non-lease
components are separated from lease components.
At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments expected to be made over the lease term. Variable lease
payments that do not depend on an index or (interest) rate arerecognized as expenses in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because theinterest rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liabilities isincreased by the associated interest expenses and reduced by
the lease payments made. In addition, the carrying amount oflease liabilities is remeasured if there is a modification of thelease or associated estimates.
The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset
is available for use). Right-of-use assets are measured at cost,less any accumulated depreciation and impairment losses, andadjusted for any remeasurement of lease liabilities. The cost ofright-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments
made at or before the commencement date less any lease
incentives received.
For leases for assets with a term of 12 months or less andfor leases of low-value assets, the Group uses the practical expedients that apply for short-term leases and for leases for which
the underlying asset is of low value.
In the fiscal year, COVID‑19-related rent concessions were
granted on the Group’s own rental relationships. The practical
expedient was exercised for these rental relationships, and the43assessment as to whether a pandemic-related rental concessionof a lessor represents an amendment to the lease agreement wassuspended. These were classified accordingly as negative variable lease payments and recognized through profit and loss inother operating income.
Leases as lessor

For some leases, the Group assumes the role of lessor. These
leases have been classified as operating leases. The Groupapplied IFRS 15 Income from Contracts with Customers inorder to allocate the consideration in the contract to the individual lease and non-lease components.
Inventories

Inventories are measured at the lower of cost or net realizablevalue pursuant to IAS 2. Cost is calculated according to theweighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business less theestimated costs of completion and the estimated costs necessary
to make the sale that have yet to be incurred.
Financial assets and financial liabilities

A financial instrument is a contract that gives rise to a financial
asset of one entity and a financial liability or equity instrumentof another entity.
Financial assets are contractual rights to receive cash orother financial assets from another entity or to exchange financial assets or liabilities with another entity on potentiallyfavorable terms. They primarily consist of trade receivables,
securities and shares in subsidiaries, which are not included in
the consolidated financial statements for reasons of materiality.
Moreover, loans to non-consolidated subsidiaries and investees
are included. At DEKRA, the financial instruments are reported
on the settlement date.
Financial liabilities comprise contractual obligations todeliver cash or other financial assets to another entity or toexchange financial assets or obligations with another entity on
potentially unfavorable terms. These primarily include liabilities
to banks and trade payables as well as other financial liabilities.

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Notes

Notes

Financial assets

Financial assets are accounted for pursuant to IFRS 9. Under
IFRS 9, financial assets are divided into three categories: financial assets at amortized cost, financial assets at fair value
through other comprehensive income and financial assets at fairvalue through profit or loss.
Financial assets at amortized costThis category includes debt instruments with contractual cash
flows that are solely payments of principal and interest on theprincipal amount outstanding. Furthermore, the debt instruments in this category are held within a business model whose
objective is to hold financial assets in order to collect contractual cash flows.
They are initially recognized at fair value, which generally
matches the acquisition cost, plus any directly attributabletransaction costs. Subsequent remeasurement is at amortizedcost using the effective interest rate method. Impairment losses
are recognized through profit or loss.
At the DEKRA Group, this category includes loans to subsidiaries that are not fully consolidated and other loans, tradereceivables, cash and cash equivalents, receivables due fromaffiliates and other financial assets.
Financial assets at fair value throughother comprehensive income

Debt instruments that, although satisfying the cash flow criterion, are held in a business model for collecting contractual cash
flows and selling financial assets are classified as “at fair value
through other comprehensive income.”
Furthermore, there is an irrevocable option to allocate
equity instruments not held for trading to this category whenbeing classified for the first time. The cumulative changes in fairvalue are not reclassified to profit or loss even when these equity
instruments are derecognized.

Both the initial recognition and subsequent measurementof the assets is at fair value. Transaction costs are recognizedthrough profit or loss. Changes in value are generally recognized in the statement of comprehensive income. By contrast,
information on the collection of contractual cash flows, such as
interest income, and dividends for debt instruments are recognized through profit or loss for debt instruments and equity
instruments, respectively.
The DEKRA Group uses this category to account forshares in affiliates and investees. These shares are held as longterm, strategic investments that are not expected to be sold inthe short to medium term.

Financial liabilities at amortized cost

Financial liabilities are allocated to this category with the
exception of derivatives, liabilities held for trading and when
exercising the fair value option.
They are initially recognized at fair value plus any directly
attributable transaction costs. Subsequent remeasurement is atamortized cost using the effective interest rate method.
The DEKRA Group uses this category for most of its
financial liabilities. Participation capital was measured using
the effective interest rate method due to the secured interest
payments.
Financial liabilities at fair value through profit or loss

Financial assets at fair value through profit or loss

This category includes debt instruments that do not satisfy the
cash flow and/or business model conditions. There is also theoption for debt instruments to be allocated to this category
upon initial recognition in order to overcome or significantly
reduce an accounting mismatch.
This category also includes equity instruments for which
the option for measurement at fair value through other comprehensive income is not exercised as well as derivatives that are
not recognized as part of an effective hedge.
The assets are initially recognized at fair value. Transaction costs are recognized through profit or loss. Subsequent
measurement is also at fair value. Changes in value in thiscategory are recognized through profit or loss.
The DEKRA Group allocates the securities held to thiscategory.
Financial liabilities

Pursuant to IFRS 9, financial liabilities are divided into two categories: financial liabilities at amortized cost and financial liabilities at fair value through profit or loss.

D E K R A Financial Report 2020

Derivatives with negative fair values must be assigned to thiscategory, unless they are recognized as part of an effective
hedge. This category also includes all liabilities held for speculative purposes and all contingent liabilities recognized byan acquirer in a business combination pursuant to IFRS 3.
Other liabilities can optionally be assigned to this category, inthe same way as “Financial assets at fair value through profit
or loss.”
With the exception of the fair value option, measurement
is the same as for “Financial assets at fair value through profit
or loss.”
At the DEKRA Group, liabilities from business combinations are allocated to this category.
Derivative financial instruments and hedge accounting

The DEKRA Group uses derivative financial instruments in theform of cash flow hedges. These serve to control and secure
future cash flows. Derivative financial instruments are recognized at fair value in the statement of financial position andreported under financial assets or under financial liabilities. The
fair values are calculated on the basis of corresponding market
prices or using appropriate valuation techniques.

45

The effective portion of the change in the fair value isrecognized in other comprehensive income, taking into
account the related tax effect. The ineffective part is recognized through profit or loss. When the hedged transaction
occurs, the cumulative “other income” is reclassified throughprofit or loss. For further information, we refer to the comments on financial management in “Financial instruments andhedging activities.”
Trade receivables, contract assets andother financial assets

Trade receivables and other financial assets are recognized atnominal value less impairment losses. Non-current non-­interest-bearing receivables are stated at present value using amatching interest rate.
Contract assets contain receivables from unbilled service
contracts. Their recognition is governed by IFRS 15 “Revenue
from Contracts with Customers.”
DEKRA recognizes revenue over time as a continuous
flow of benefits to customers or an asset with no alternative use
is created. In both cases, an ordinary termination right by thecustomer gives rise to a reimbursement claim for the respective
proportionate selling price. DEKRA therefore recognizes revenue based on the respective degree of completion of the performance obligation. Selecting the method to determine the percentage of completion requires judgment and depends on thetype of service being rendered. To determine the stage of completion for the respective contract, the cost-to-cost method is
generally used as the ratio of costs incurred to the estimatedtotal costs. Payments received for unbilled service contracts aredisclosed net of contract assets on a contract-by-contract basis.
If the prepayments received exceed the contract assets, they arereported on a net basis under contract liabilities.
Trade receivables, contract assets and other financial
assets are subject to the impairment model of IFRS 9.

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Notes

Notes

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, bank balancesand short-term deposits and are recognized at nominal value lessany expected credit losses. The expected credit losses are also
determined using the impairment model pursuant to IFRS 9.
This is described in more detail in the section “Impairment losses
and reversals of impairment losses pursuant to IFRS 9.”
Deferred taxes and income taxes

Income taxes include expenses and income from current anddeferred taxes as well as tax allocations to the parent
DEKRA e.V., Stuttgart, with which the Company forms a tax
group for income tax purposes.
Current income tax liabilities/income tax assets are measured at the amount expected to be paid to/recovered from thetax authorities. The calculation is based on the tax rates enacted
or substantively enacted as of the reporting date. IFRIC 23 wasobserved when determining income tax liabilities. The subsidiaries included are asked whether they have any uncertain tax
treatments. If such treatments exist, they are taken into accountaccordingly.
Deferred taxes are recognized in accordance with the liability method pursuant to IAS 12 for temporary differences
between the tax accounts and the consolidated financial statements – with the exception of goodwill resulting from acquisition accounting that cannot be recognized for tax purposes –and for unused tax losses. Deferred tax assets are only
considered to the extent that it is sufficiently probable that they
will be realized. Probable usability is based on a multi-year planfor the respective entity. Deferred taxes are calculated using therespective local tax rates on the basis of the tax rates that are
expected to apply for the period of reversal of the difference.
Changes to tax rates adopted by the reporting date are taken
into account when calculating deferred taxes.
Deferred taxes are recorded as tax income or expense
through profit or loss unless they relate to items recorded inother comprehensive income; in this case, the deferred taxes are
likewise recorded in other comprehensive income.

Deferred tax assets for unused tax losses are only recognized to the extent that it is probable that future taxable profit
will be available against which they can be utilized.
Deferred tax assets and liabilities are disclosed net in the
consolidated statement of financial position, if there is a legally
enforceable right to offset current tax liabilities and the deferredtaxes relate to the same taxable entity and the same taxation
authority. Accordingly, offsetting is carried out at entity and tax
group level.
Impairment losses and reversals of impairment losses
Impairment losses and reversals of
impairment losses pursuant to IAS 36

The carrying amounts of the assets that fall under the scope of
IAS 36 are tested on each reporting date for indications that an
asset may be impaired. If such indications are found to exist,
the recoverable amount of the asset concerned is estimated. The
recoverable amount is the higher of an asset’s net realizablevalue and its value in use (present value of expected future cash
flows). If the recoverable amount is lower than its carrying
amount, an impairment loss must be recognized to reduce thecarrying amount to the recoverable amount. Impairment losses
recognized in prior years must be reversed when there is achange in estimate and the recoverable amount is higher thanthe carrying amount.
In addition, annual impairment tests must be carried out
for goodwill, intangible assets with indefinite useful lives andintangible assets that are not yet available for use. As goodwill
and other intangible assets cannot generally be sold independently and cannot generate cash flows independently ofother assets, impairment tests can only be carried out in connection with a cash-generating unit.
The cash-generating units relevant for the goodwill
impairment test are defined at the regional cluster level and at
the level of the globally operating Temp Work unit. This islargely due to the joint management and monitoring of the individual regional clusters of the globally active unit “Temp Work.”

D E K R A Financial Report 2020

In the course of the impairment test of a cash-generating unit,
the carrying amount of a cash-generating unit is compared to
the recoverable amount. The cash-generating unit includes
those assets that can be allocated directly or indirectly on a reasonable and consistent basis to the cash-generating unit and will
generate the future cash inflows. If the net sales proceeds andthe present value of the expected future cash flows of a cash-­generating unit are lower than its carrying amount, the impairment expense recognized through profit or loss is allocated tothe individual assets of the cash-generating unit. This allocation
is made in proportion to the individual assets’ share in the
cash-generating unit’s carrying amount. If goodwill is assigned
to the cash-generating unit, any identified impairment expense
is first assigned to goodwill and then allocated proportionately
to the other assets of the cash-generating unit.
Impairment losses and reversals of
impairment losses pursuant to IFRS 9

The impairment model introduced by IFRS 9 is based on future
expected credit losses and is applicable for all financial assets(debt instruments) that are not measured at fair value throughprofit or loss. The impairment approach provides for a threestage model for the allocation of impairment losses.
Stage 1: 12-month expected credit losses

Stage 1 comprises all instruments for which there has notbeen a significant increase in credit risk since initial recognition. The expected default within the next 12 months
is taken into account as an impairment loss.
Stage 2: lifetime expected credit losses –credit standing not impaired

Stage 2 comprises all instruments for which there has
been a significant increase in credit risk as of the reporting
date compared to the date of initial recognition, but noobjective indication of impairment. All expected losses
are recognized over the residual term of the instrument
as impairment. A past due status of more than 30 days is

47

used as objective evidence for a significant increase in thecredit risk.
Stage 3: lifetime expected credit losses –credit standing impaired

If there is also objective evidence of impairment in addition to a significant increase in the credit risk as of thereporting date, all expected losses of the instruments arerecognized as impairment over the entire lifetime. A past
due status of more than 90 days is used as objective evidence of impairment as well as further indications offinancial difficulties on the part of the debtor.
The assessment as to whether the credit risk of a financial asset
has increased significantly is performed at regular intervals, atleast once a year, based on internally or externally available
information on the counterparty (e.g., rating information). Past
due information is also used to assess the probability of default
especially for trade receivables and other financial assets.
For trade receivables and contract assets, DEKRA uses a
simplified approach to determine the expected credit losses basedon the lifetime expected credit losses. A review as to whether
there has been a significant increase in the credit risk is therefore
not necessary. Portfolio allowances for the expected credit losses
are calculated on the basis of historical data adjusted for supportable, forward-looking macroeconomic factors. For example, thisinvolves analyzing and weighting GDP growth rates published by
the OECD for the regions in which DEKRA operates. As the forward-looking macroeconomic factors that were used already contain expectations in respect of the development of the economic
situation due to the COVID‑19 pandemic, no further adjustments
were made in this regard. In addition, the volume of receivables
is regularly analyzed for any new findings that could have an
impact on the expected loss. In fiscal year 2020, this analysis also
included potential risks in respect of economic development due
to the COVID‑19 pandemic. The findings are accounted for using
adequate specific bad debt allowances. For further information,
we refer to the comments on impairment in section 6.8.

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Notes

Notes

For receivables from credit balances at banks, loans andother financial assets, the expected credit losses pursuant to
IFRS 9 are determined annually on the basis of probabilities ofdefault derived from the respective rating of the contractual
partner as well as the loss given default and the amount at riskof default.
A financial asset is derecognized if it is assumed after
thorough analysis that it can no longer be realized, for example
after the end of insolvency proceedings or after court rulings.
Pensions and other post-employment benefits

Provisions for pensions and similar obligations are calculated
according to the projected unit credit method prescribed by
IAS 19. In addition to biometric bases of calculation, thismethod primarily takes into account current assumptions
regarding future increases in salaries and pensions as well as
the relevant long-term capital market interest rate, which isdetermined on the basis of the market yields of high-quality
fixed interest corporate bonds as of the reporting date. The provision is recognized at an amount equivalent to the defined
benefit obligation.
Plan assets that are invested in order to cover defined benefit pension plans and other similar benefits are measured at fairvalue and offset against the corresponding obligations.
Net interest on net debt or the net asset value arises asinterest on the net debt or net asset value of the reporting period
pursuant to IAS 19.123. It is determined at the start of the fiscal
year and presented in the amount of the increase of the provisionor asset recognized in the past due to the interest in the period.
Actuarial gains and losses, which primarily result fromdeviations from the assumptions made, are recorded in othercomprehensive income in the period in which they occur. Past
service cost from plan amendments is immediately recognizedin personnel expenses in the fiscal year in which the amendments
are made.
Actuarial reports are obtained for the calculation of thepension provisions.
Other provisions

Provisions are recognized in the amount required, based on abest estimate, to cover all present obligations as of the reporting

date. Future events which may have an effect on the amountneeded to satisfy the obligation are considered in the provisions,provided that they can be forecast with an adequately objective
degree of certainty and that the obligation results from past
events. In addition, provisions for potential losses for onerous
contracts are recognized in accordance with IAS 37.
The provision is measured at the most probable amountof a range of expected values. Where possible, it is determined
and measured using contractual agreements; otherwise calculations are based on past experience and estimates by management.
Non-current provisions are recognized at present value
and discounted at market interest rates that match the risk andthe period to realization.

period in which they are incurred. If it is foreseeable that total
contract costs will exceed total contract revenue, the expected
loss is recognized as an expense immediately. Contracts are generally processed within one year. The revenue recognition, settlement and cash inflows result in trade receivables, contract assets
as well as contract liabilities.
Revenue is recognized over time in particular in the Product Testing, Industrial Inspection and Training Service Divisions.
DEKRA recognizes revenue at a point in time in all of its
Service Divisions. In this case, there is no continuous outflow of
economic benefits to the customer. Furthermore, no asset is created without an alternative use.
Dividends are recognized when the right to receive payment arises.

Contract liabilities

Government grants

If a customer pays consideration before the Group has transferred the goods or services, a contract liability is recognizedwhen the payment is made or is due. Contract liabilities arerecognized as revenue as soon as the Group has satisfied its contractual obligations.

In accordance with IAS 20, government grants are only recognized where there is reasonable assurance that all attachingconditions will be complied with and the grant will bereceived. They are recognized through profit or loss as of thedate the subsidized expenses are incurred, unless they relate
to subsidies for an asset. Government grants are generally
disclosed without offsetting under other operating income.

Revenue recognition

DEKRA provides services in the Vehicle Inspection, Claims &Expertise, Product Testing, Industrial Inspection, Consulting,
Audits, Training and Temp Work Service Divisions and recognizes the associated income pursuant to IFRS 15 “Revenue fromContracts with Customers.” IFRS 15 provides for a uniform
principles-based five-step model for calculating revenue thatmust be applied to all contracts with customers.
DEKRA recognizes revenue over time as a continuous flowof benefits to customers or an asset with no alternative use is created. In both cases, an ordinary termination right by the customer gives rise to a reimbursement claim for the respective proportionate selling price. DEKRA therefore recognizes revenue
based on the respective degree of completion of the performanceobligation. The percentage of completion per contract to be recognized is calculated as the ratio of the actual costs incurred tooverall anticipated costs of the project (cost-to-completion
method). This is the most suitable method for DEKRA to measureprogress. Contract costs are recognized as an expense in the

D E K R A Financial Report 2020

Accounting judgments and estimates

In applying the accounting policies, the Management Board has
made the following judgments which have a significant effect on
the amounts recognized in the consolidated financial statements.
The consolidated financial statements include assumptions and estimates which have an effect on the carrying
amounts and recognition of assets and liabilities as well as
income and expenses. Actual amounts may differ from theamounts based on these estimates and assumptions.
In particular, assumptions and estimates were made concerning the useful lives of non-current assets, the recoverabilityof goodwill and other intangible assets, the recoverability ofreceivables, the adequate valuation of securities, the parameters
for measuring pension and other provisions, and the recoverability of deferred tax assets. In addition, we refer to the above
explanations and to the comments in note 6 on the individual
items in the statement of financial position.

49

The Group determines the term of the lease based on the
non-cancellable period of the lease, including reasonably certain extension options and the periods covered by an option toterminate the lease if it is reasonably certain that the Group will
not make use of this option.
Several leases containing extension and termination
options were concluded. Judgment in evaluating whether it isreasonably certain whether or not to exercise the option to
renew or terminate the lease is applied, i.e., it takes all relevant
factors into account that provide an economic incentive to exercise the extension or termination options. After the commencement date, the lease term is reassessed if there is a significant
event or change in circumstances that is within control andaffects the ability to exercise or not to exercise the option to
renew or to terminate (e.g., construction of significant leasehold
improvements or significant customization to the leased asset).
The term of lease agreements generally corresponds to thecontractual term. As open-ended contracts do not have a contractual term, the cluster term is used in this case. The cluster
term is the term that contracts in the same cluster generally
have. A cluster is a group of lease agreements for similar underlying assets. DEKRA categorizes lease agreements into the following clusters: IT, buildings, vehicles, technical equipment aswell as furniture and fixtures. The cluster term was determined
for the fiscal year and is based on past experience. Also for termination and extension options, the cluster term is determinedas the lease term provided that the cluster term is greater thanthe contractual term. Should a contract with a termination or
extension options be greater than the contractual term, the contractual term is then used.
Refer to note 8.1 for information on potential rental payments relating to periods following the exercise date of extension
and termination options that are not included in the lease term.
Goodwill is tested for impairment at least once a year. The
impairment tests carried out are mainly based on estimates.
Various scenarios were therefore worked out for the individual
cash-generating units. The main estimates were the future
expected net cash flows, based on market developments, as wellas assumptions about economic development and an estimate
of increases in personnel costs, the growth rates and theweighted average cost of capital. Even if the estimates should

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Notes

Notes

change, the recoverable amount is currently expected to exceed
the carrying amount of goodwill. Especially with regard to theassumptions concerning goodwill impairment or on the
expected future cash flows and weighted average of cost of capital, we refer to note 6.2.
Loss allowances on trade receivables relate to assumptions
regarding the credit risk and the expected loss given defaults.
DEKRA makes these assumptions based on past experience,existing market conditions as well as estimates concerning thefuture as of the end of the reporting period.
Selecting the method to determine the degree of completion of customer contracts requires judgment and depends on
the type of service being rendered. To determine the stage ofcompletion for the respective contract, the cost-to-cost method
is generally used as the ratio of costs incurred to the estimatedtotal costs.
The obligation from defined benefit pension obligations
and the pension benefit payments of the subsequent year are
determined based on actuarial parameters such as interest rate,
future salary and pension increases, and age. Changes inparameters can have a significant effect on the benefit obligation. For further explanations, we refer to note 6.14.
In some business combinations, contingent consideration
has been arranged or call or put options for non-controllinginterests have been agreed with the seller. The resulting purchase price liabilities are subject to estimates as to whether
future targets can be achieved and in terms of assumptions
regarding the present value of future purchase price payments.
For further explanations, we refer to note 3.1.
Deferred tax assets are recognized to the extent that they
are likely to be used. The probability of their being used in the
future is assessed taking into account various factors such as
future taxable profit in the planning periods. DEKRA uses aplanning horizon of five years. The actual amounts may differ
from the estimates. These are then adjusted in othercomprehensive income or through profit or loss, depending on
how they were initially recognized.
The development of the COVID‑19 pandemic remains
fluid. Ongoing restrictions stemming from the pandemic could
have a negative impact on assets and liabilities, financial position and financial performance in fiscal year 2021. We will continue to monitor the effects of the pandemic closely and takeappropriate action if required.

4 BUSINE S S C O MB IN AT I O NS
Presentation of significant businesscombinations in the fiscal year

With effect from September 11, 2020, DEKRA acquired all of
the shares in MOVON Test Lab Co., Ltd. for a purchase price of
11.1 million euros.
The acquired net assets amounted to 0.9 million euros. Asof the date of acquisition, the carrying amounts of the acquired
assets and liabilities totaled 1.9 million euros and 1.0 million
euros respectively.
Assets are attributable in the amount of 0.7 million euros
to trade receivables, 0.4 million euros to property, plant andequipment, 0.3 million euros to other non-current assets,
0.3 million euros to other current assets and 0.2 million euros
to cash and cash equivalents. The carrying amount of the receivables corresponds to their fair value. All liabilities are current.
In the course of the purchase price allocation, intangible
assets (customer list and order backlog) of a total of 4.3 million
euros and deferred tax liabilities of 0.9 million euros were recognized. The resulting goodwill on the acquisition dateamounted to 6.8 million euros. In addition to synergy effects,
the goodwill arising includes intangible assets that cannot bemeasured separately from goodwill such as the permanent
workforce and know-how.

The company was allocated to the Product Testing Service
Division and the East & South Asia region.
Apart from the acquisition of shares in MOVON Test Lab
Co., Ltd., there were no significant acquisitions or acquisitions
that together are considered to be significant.

5.1 REVENUE

Presentation of significant businesscombinations in the prior year

IN THOUSAND EUR

No significant acquisitions or acquisitions that together are considered to be significant took place in the prior year.

Germany

5 S
 TAT EMEN T O F C O MP REHENSI V E IN C O ME/
IN C O ME S TAT EMEN T
The statement of comprehensive income has been preparedusing the nature of expense method. Income and expenses
attributable to the fiscal year are recognized through profit orloss. Non-owner-based transactions reported as other comprehensive income are presented after the income statement (onestatement approach).

51

Revenue is broken down by region and Service Division. The
revenue results from ordinary activities.
Revenue by region
2020

2019

1,929,566

2,066,931

South-West Europe

497,920532,162

North-West Europe

332,633

346,126

Central East Europe & Middle East

146,937

162,462

East & South Asia

113,343

102,485

North America

83,81393,620Southern Africa & Oceania

74,46086,449South America

9,562

18,727

3,188,234

3,408,962

2020

2019

Vehicle Inspection

1,131,479

1,064,555

Industrial Inspection

507,185

504,089

Claims & Expertise484,489

560,711

Temp Work306,152

471,188

Product Testing

259,324

243,952

Consulting

201,147

220,670

Training

180,574

219,489

Audits81,007

81,197

Other

36,877

43,111

3,188,234

3,408,962

Revenue by Service Division
IN THOUSAND EUR

Revenue also includes income from unbilled service contracts(over time) as of year-end of 39,825 thousand euros (prior year:
33,768 thousand euros), which are recognized proportionately
over the performance period. 21,554 thousand euros thereof
was generated in the Product Testing Service Division.

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Notes

Notes

DEKRA’s performance obligations are generally satisfied
when the service has been rendered (e.g., training, consulting)or completed (e.g., vehicle inspection, certification cycle).
At DEKRA, the terms of payment differ according toregion and service. Across the Group, the terms of payment
generally range between 30 and 60 days and do not contain any
significant financing components.
For customer contracts that have an original expected
duration of more than one year or performance obligations notrecognized in accordance with IFRS 15.B16, the transaction
price for the remaining unsatisfied or partially unsatisfied performance obligations can be broken down as of December 31,
2020 as follows:
IN THOUSAND EUR

2020

2019

Cost of materials breaks down as follows:
IN THOUSAND EUR

Cost of purchased services
Cost of purchased merchandise

IN THOUSAND EUR

Wages and salaries

Within one year

9,582

3,791

More than one year

3,134

2,632

Pension costs

12,716

6,423

Other operating income amounts to 57.2 million euros (prioryear: 37.2 million euros). This includes government grants totaling 12.9 million euros (prior year: 3.3 million euros), whichwere largely received to mitigate the economic impact of the
COVID‑19 pandemic (see paragraph 8.4) along with other reintegration and payroll subsidies. There was also income from thereversal of impairments in the amount of 7.6 million euros(prior year: 4.2 million euros). Other operating income also
includes exchange gains of 3.1 million euros (prior year: 2.0 million euros), income from the disposal of fixed assets of 2.2 million euros (prior year: 4.7 million euros) as well as income fromcompensation of 2.2 million euros (prior year: 2.3 million
euros).

2020

2019

278,223

301,381

36,25731,510314,480

332,891

5.4 PERSONNEL EXPENSES

Social security costs (excl.
pension insurance premiums)

5.2 OTHER OPERATING INCOME

The Group’s employees are distributed as follows (annual
average):

5.3 COST OF MATERIALS

2020

1,731,098

2019

1,843,507

232,408

247,127

137,857

137,220

2,101,363

2,227,854

Pension costs also include employer contributions to the statutory pension insurance fund of 98.7 million euros (prior year:
100.9 million euros). The majority of Group employees aresalaried employees.
Grants of 13.1 million euros were issued in connection
with the COVID‑19 pandemic, which were offset against personnel expenses. These largely relate to government benefits for
employees (see paragraph 8.4).

2020

2019

Germany

20,11622,015South-West Europe

7,481

7,604

Central East Europe & Middle East

4,099

4,371

North-West Europe

3,128

3,061

Southern Africa & Oceania

1,842

East & South Asia

1,658

A NNUA L AV ER AGE

5.7 FINANCIAL RESULTThe financial result breaks down as follows:
IN THOUSAND EUR

2020

2019

Investment result from companies
accounted for using the equity
method

840

531

1,815

Dividends from equity
instruments at fair value throughother comprehensive income

272

307

1,594

Other investment result

1,376

51

Expenses from investments andshares in affiliates

–237

–112

0

–1

Result from loans

–100

–25

Other financial result

1,311

220

Interest income

6,747

4,988

Interest expenses–24,376–25,980

North America

568

560

South America

255

249

Central units

658

634

Service Divisions

219

207

40,022

42,110The definition of headcount was amended compared to the prioryear. Part-time employees are fully included in fiscal year 2020.
The headcount figures for 2019 were adjusted in line with the
new definition.
5.5 OTHER OPERATING EXPENSES

Other operating expenses contain exchange differences of474.4 million euros (prior year: 498.3 million euros) primarily
contain IT and telephone costs of 89.9 million euros (prior year:
82.2 million euros), administrative expenses of 86.2 million
euros (prior year: 89.3 million euros), travel expenses of
79.2 million euros (prior year: 104.0 million euros), rent andbuilding costs of 66.6 million euros (prior year: 55.2 million
euros) as well as advertising expenses of 35.7 million euros(prior year: 43.1 million euros). Other operating expenses contain exchange differences of 4.7 million euros (prior year:
3.4 million euros).
5.6 A MORTIZATION AND DEPRECIATION OF
INTANGIBLE ASSETS, RIGHT-OF-USE ASSETSAND PROPERTY, PLANT AND EQUIPMENT

The composition of depreciation, amortization and impairment
losses is presented in the statements of changes in intangible
assets, right-of-use assets and property, plant and equipment.
See notes 6.1, 6.3 and 8.1.

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53

Result from securities

thereof other interest
expenses–19,308–18,328

thereof interest expenses forthe phased retirement scheme

–11

–8

thereof net lending from
German phased retirement
scheme obligations

–49

57

–5,008–7,701

Interest result–17,629–20,992

Financial result–15,478–20,241

thereof net lending from pension provisions

The investment result from companies accounted for using theequity method of 840 thousand euros (prior year: 531 thousand
euros) relates to the recognition of profit shares of FSD
Fahrzeugsystemdaten GmbH, Dresden, Germany, Euro Transport Media Verlags- und Veranstaltungsgesellschaft mbH,
Stuttgart, Germany, and DEKRA Advanced Mobility Testing(Huzhou) Co. Ltd., Huzhou City, China. The other financial
result largely contains income from the reversal of impairment
losses on shares in affiliates, which is recognized under otherinvestment result.

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Notes

Notes

Interest income primarily stems from interest income
from loans and receivables of 4,133 thousand euros (prior year:
3,046 thousand euros). Measurements in foreign currencies had
an effect of 2,174 thousand euros (prior year: 666 thousand
euros) on interest income.
Other interest expenses of 19,308 thousand euros (prioryear: 18,328 thousand euros) chiefly stem from short-term andlong-term loans as well as from unwinding the discount on leaseliabilities. Moreover, this includes expenses from the increasein liabilities from put and call options in connection with subsidiaries acquired in prior years of 2,651 thousand euros (prioryear: 2,863 thousand euros) as well expenses from currency
effects of 4,231 thousand euros (prior year: 1,184 thousand
euros) in the fiscal year.
Net lending from pension provisions results from interest
expenses arising from pension obligations of 10,778 thousand
euros (prior year: 17,068 thousand euros) less the expected
return on plan assets of 5,770 thousand euros (prior year:
9,367 thousand euros).
5.8 INCOME TAXES

Income taxes include taxes paid or owed on income as well asdeferred taxes.
Tax allocations to DEKRA e.V., Stuttgart, of 29.4 million
euros (prior year: 33.3 million euros) are also recognizedunder income taxes. The tax allocation corresponds to theactual tax incurred up to the level of DEKRA SE. The resulting
receivables and liabilities are included under receivables andliabilities to affiliates.

2020

2019

52,616

63,773

Temporary differences–3,682–850

Unused tax losses

4,068–1,16653,002

61,757

IN THOUSAND EUR

Current taxes
Deferred taxes

55

The deferred taxes as of December 31, 2020 break down
as follows:
DEFERRED TAX ASSETSIN THOUSAND EUR

DEFERRED TAX LIABILITIES

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2020

Dec. 31, 2019Non-current assets

98,26389,694

66,72777,063Current assets

6,627

6,366

5,129

5,149

Pension provisions

166,081

157,991

95,46888,795

Other non-current liabilities

35,92137,303

9,585

1,471

18,29917,880678

874

325,191309,234

177,587

173,352

6,563

10,44900Non-current liabilities

Current taxes contain tax expenses of 1,022 thousand euros(prior year: 745 thousand euros) relating to other periods.
As of the reporting date, the DEKRA Group disclosed
24,278 thousand euros in total of unused tax losses (prior year:
38,317 thousand euros), which resulted in deferred tax assets of
6,563 thousand euros (prior year: 10,449 thousand euros). The
Group considers it reasonably certain that future taxable profit
will be available against which they can be utilized. The respective local tax rate was used in each case.
Deferred taxes from temporary measurement differenceswere determined using future anticipated local tax rates, e.g.,
30.5% (prior year: 30.5%) for Germany, 25.0% (prior year: 25.0%)
for France and 25.0% (prior year: 25.0%) for the Netherlands.
No deferred taxes were recognized on retained earnings
from subsidiaries, since the profits are to remain invested in thesubsidiaries for the time being.

Current liabilities
Deferred taxes on temporary measurement differences
Deferred taxes on unused tax losses
Total deferred taxes

331,754319,683

177,587

173,352

Offsetting at tax group level–150,004–143,574–150,004–143,574

Disclosure

181,750

176,10927,58329,778The following tax reconciliation clarifies the difference between
the effective tax expense according to the statement of comprehensive income and the tax expense that would theoreticallyarise if the tax rate of DEKRA SE were to be applied to consolidated earnings before taxes. As in the prior year, the DEKRA
Group’s tax rate is 30.525%.
2020

2019

Consolidated earnings before tax

146,894

181,590

Expected tax expense (30.525%)

44,83955,430Losses for which no deferredtaxes were recognized

2,249

848

IN THOUSAND EUR

Differences from foreign tax rates

544

–876

Tax-free income–3,277–690

Non-deductible expenses

6,401

7,144

Tax items relating to other periods

2,098

–303

148

204

53,002

61,757

Other tax effects
Effective tax expense

D E K R A Financial Report 2020

Deferred income tax assets andcurrent income tax assets

The Group has unused tax losses that can be carried forward
indefinitely of 44,005 thousand euros (prior year: 22,570 thousand euros), for which no deferred taxes were recognized, since
it is not yet sufficiently certain that they will be usable for tax
purposes.
Deferred tax assets and liabilities were offset at tax grouplevel provided the requirements for offsetting pursuant to
IAS 12.74 were met.
Of the change in deferred taxes, an amount of 8,023 thousand euros (prior year: 24,931 thousand euros) was reported
through other comprehensive income. There were also changes
in the deferred taxes from first-time consolidations as well asfrom currency translation effects.
The decrease in current income tax receivables is primarily due to a legislative change to abolish tax credits on social
security contributions in France (Crédit d’impôt pour lacompétitivité et l’emploi).

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Notes

Notes

Deferred income tax liabilities andcurrent income tax liabilities

6 S TAT EMEN T O F FIN A N C I A L P O SI T I O N

Besides those from effective tax obligations, tax liabilities
arise mainly from deferred tax liabilities. The recognition andmeasurement differences determined from adjustments of thestatements of financial position of the consolidated companies
according to local GAAP to IFRSs and consolidation entries
recognized through profit or loss, which resulted in deferred tax
assets or liabilities, are presented in the table above. Deferredtaxes of 1.0 million euros (prior year: 0.5 million euros) wererecognized in the first-time consolidations.
Current tax liabilities mainly relate to income tax liabilities of foreign entities. Of the liabilities from tax allocations to
DEKRA e.V., Stuttgart, an amount of 29.4 million euros has
been offset against receivables from affiliates.

Non-current assets

6.1 INTANGIBLE ASSETSIn addition to goodwill, items include customer lists acquired
for a consideration, franchises, industrial and similar rights
and assets, and internally generated intangible assets (IT developments).
Internally generated intangible assets of 1,903 thousand
euros (prior year: 2,852 thousand euros) were recognized forsoftware developments in the reporting year.
In the fiscal year, impairment losses were recognized for IT
projects in the amount of 13,065 thousand euros (prior year:
0 thousand euros) on account of the amended underlying conditions. This applies in particular to customer-related IT projects.

5.9 STATEMENT OF COMPREHENSIVE INCOME

The consolidated net income for the year under IFRSs stands at
93.9 million euros (prior year: 119.8 million euros). This serves
as a basis for developing the income statement into the statement of comprehensive income. Items affecting other comprehensive income, which will not be recycled through profit orloss in the future, include the remeasurement of defined benefit
pension plans of –26.7 million euros (prior year: -78.9 million
euros), less associated deferred taxes of 8.0 million euros (prioryear: 24.9 million euros), as well as the change in the fair valueof equity instruments at fair value through other comprehensive
income of –34.4 million euros (prior year: 16.0 million euros).
Reclassification adjustments from other comprehensive
income to profit or loss in the fiscal year are explained in note 10.
In addition, expenses from currency translation of
10.0 million euros (prior year: income of 4.2 million euros) wererecognized in other comprehensive expenses. The effects of foreign currency translation are primarily due to translation of
items from the Brazilian real, South African rand and­Hungarian forint. This was mainly countered by the effects fromthe translation of items from the Swedish krona. These items
could also be recycled through profit and loss in the future if
certain conditions are met.

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57

INTANGIBLE ASSETSIN THOUSAND EUR

Goodwill

Franchises,industrial andsimilar rights

Other intangible assets

Internallygeneratedintangible
assets

Prepayments
and intangible
assets underdevelopment

Total

581,325

167,562

226,618

41,535

17,946

1,034,986

2,422

37

1,237

61

6

3,763

28

–4

4

21

–1

48

Additions

6,396

9,738

2,457

2,852

12,63334,076

Additions to the consolidated group

9,684

0

1,703

0

0

11,387

Disposals

–852

–319

–6,777–675–38–8,661

Cost
As of Jan. 1, 2019
Exchange difference on opening balance
Exchange difference in current year

Reclassifications
As of Dec. 31, 2019/Jan. 1, 2020
Exchange difference on opening balance

0

6,482

73

816

–6,994377

599,003

183,496

225,315

44,61023,552

1,075,976–8,553–205–4,048–215–67–13,088

Exchange difference in current year

–7

23

–64

–203

36

–215

Additions

0

6,523

1,396

1,903

12,81822,64015,076

292

4,609

0

6

19,983–221–5,750–1,555–590–2,505–10,6210

9,527–1,195

1,750–10,772–690

Additions to the consolidated group
Disposals
Reclassifications
As of Dec. 31, 2020

605,298

193,906

224,458

47,25523,0681,093,985

Amortization and impairment losses
As of Jan. 1, 2019

–72

–128,401–158,897–20,4810–307,851

Exchange difference on opening balance

–61

–28

–659

–72

0

–820

Exchange difference in current year

0

1

–94

–12

0

–105

Additions0–14,440–18,360–3,8490–36,649

Disposals

0

119

6,004

0

0

6,123

Reclassifications

0

–40

–69

0

0

–109

As of Dec. 31, 2019/Jan. 1, 2020

–133

–142,789–172,075–24,4140–339,411

Exchange difference on opening balance

–228

141

2,893

320

0

3,126

Exchange difference in current year

0

–28

117

76

0

165

Additions0–21,770–13,138–10,168–2,111–47,187

Disposals

0

5,576

1,977

564

2,111

10,228

Reclassifications

0

325

631

0

0

956

–361

–158,545–179,595–33,6220–372,123

Carrying amount as of Dec. 31, 2020

604,937

35,361

44,863

13,63323,068721,862

Carrying amount as of Dec. 31, 2019598,870

40,70753,24020,19623,552736,565

Carrying amount as of Jan. 1, 2019

581,253

39,161

67,72121,055

17,946727,136

As of Dec. 31, 2020

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Notes

Notes

6.2 GOODWILL

Of the goodwill in the fiscal year, 215.9 million euros (prioryear: 215.9 million euros) relates to the CGU Germany,
112.0 million euros (prior year: 110.1 million euros) to the CGU
South-West Europe, 92.7 million euros (prior year: 89.5 million
euros) to the CGU North-West Europe, 63.2 million euros(prior year: 56.7 million euros) to the CGU East & South Asiaand 54.4 million euros (prior year: 58.2 million euros) to the
CGU North America. Furthermore, 26.2 million euros (prioryear: 26.2 million euros) relates to the CGU Central East Europe& Middle East, 23.2 million euros (prior year: 23.1 million
euros) to the CGU Temp Work, 15.2 million euros (prior year:
16.5 million euros) to the CGU Southern Africa & Oceania and2.1 million euros (prior year: 2.7 million euros) to the CGU
South America. The forecast for expected future cash flows take
into account the uncertainty caused by the COVID‑19 pandemic and the impact on the respective market environment.
Additions of 15.1 million euros to goodwill are attributable to business combinations and asset deals that took place in2020 as well as the inclusion in the consolidated group of entities previously considered to be immaterial. Furthermore, goodwill decreased by 8.8 million euros (prior year: increase of
2.4 million euros) due to currency translation differences.
The recoverable amount of each cash-generating unit wasdetermined using the value in use of the relevant unit. The cash

flow forecast is based on the long-term planning adopted bymanagement that is applicable as of the time when the impairment test is performed, which previously covered a planninghorizon of three years. In fiscal year 2020, the planning horizon
was adjusted to a period of five years as this better reflects theassumptions for market developments over the short- to­medium-term. Alongside expectations for future market andcompany development, past experience is also taken into
account in management’s planning. Cash flows after the fiveyear period were generally extrapolated taking into accountestimated growth rates of 0.5% (prior year: 0.5%). The estimatedgrowth rates came from forecasts by the Company. For the eightregional clusters, cash flows were discounted using a risk-­adjusted interest rate after tax of 6.1% (prior year: 6.5%). For the
globally operating Temp Work unit, a risk-adjusted interest rate
after tax of 9.0% (prior year: 8.0%) was used.
A 10% decrease in the expected cash flows or a 1% increasein the discount rate underlying the value in use calculation forthe cash-generating unit would individually not result in any
impairment losses. If both scenarios (10% decrease in the
expected cash flows and 1% increase in the discount rate) wereto occur simultaneously, this would result in no need for
impairment.
For more information, please refer to the explanations in
the descriptive section of the notes on impairment losses.

6.3 PROPERTY, PLANT AND EQUIPMENT
IN THOUSAND EUR

Cost
As of Jan. 1, 2019
Exchange difference on opening balance
Exchange difference in current year
Additions
Additions to the consolidated group

Land andbuildings

Technical
equipment andmachines

Other equipment, furnitureand fixtures

Prepayments
and assets
underconstruction

Total

241,774

228,462

258,988

18,758

747,982

549

1,636

635

352

3,172

–16

–101

260

–61

82

10,13734,54735,43831,915

112,037

592

423

119

0

1,134

Disposals–4,572–10,255–23,534–302–38,663

Reclassifications*–1,171

–853

5,074

–11,122–8,072

247,293

253,859

276,980

39,540817,672–1,158–2,560–1,780–214–5,712

–81

–172

483

–57

173

Additions

8,329

23,65333,155

9,152

74,289Additions to the consolidated group

2,372

4,271

633

74

7,350

Disposals–5,908–8,134–17,113–2,501–33,656

Reclassifications

20,209

6,235

6,610

–28,399

4,655

As of Dec. 31, 2020

271,056

277,152

298,968

17,595

864,771

Depreciation and impairment losses
As of Jan. 1, 2019

–69,118–130,727–168,696–3,358–371,899

–139

–723

–342

–156

–1,360

–5

108

–115

0

–12

Additions–7,047–21,071–26,026–1,966–56,110

Disposals

347

8,334

18,16935

26,885

Reclassifications*

756

2,384

707

0

3,847

–75,206–141,695–176,303–5,445–398,649

301

1,195

1,067

79

2,642

6

94

–473

0

–373

Additions–7,953–23,851–29,781–7–61,593

Disposals

4,357

7,857

15,619027,833

Reclassifications–1,354

–811

–421

0

–2,586

As of Dec. 31, 2020

–79,849–157,212–190,292–5,373–432,726

Carrying amount as of Dec 31, 2020

191,207

119,940

108,676

12,222432,045

Carrying amount as of Dec. 31, 2019

172,089

112,167

100,677

34,094

419,023

Carrying amount as of Jan. 1, 2019

172,657

97,73690,292

15,400376,083

As of Dec. 31, 2019/Jan. 1, 2020
Exchange difference on opening balance
Exchange difference in current year

Exchange difference on opening balance
Exchange difference in current year

As of Dec. 31, 2019/Jan. 1, 2020
Exchange difference on opening balance
Exchange difference in current year

* Reclassification of finance leasing to point 8.1 contained here as IFRS 16 was applied for the first time

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Notes

Notes

6.4 F INANCIAL ASSETS ACCOUNTED FOR
USING THE EQUITY METHOD

The separate financial statements of entities accounted for using
the equity method provide the following financial information,
which has not been adjusted to the share held by the Group:
IN THOUSAND EUR

Dec. 31, 2020

41,591

31,418Aggregated current assets

22,377

28,817907

843

24,48423,042Aggregated current liabilities

IN THOUSAND EUR

2020

2019

Fair value
IN MILLION
EUROS

Number ofentities

Fair value
spreadIN MILLIONEUROSRegionCentral East Europe &Middle East

29.1

35

0.0 – 2.7

North-West Europe

9.0

50.0 – 6.6

South-West Europe

4.0

70.0 – 1.7

Aggregated revenue

37,19338,730Germany2.8

20.0 – 2.7

Aggregated net income for the year

2,146

3,253

North America

1.9

2

0.8 – 1.1

East & South Asia

0.8

2

0.0 – 0.8

South America

0.0

3

0.0

Southern Africa &Oceania

0.0

1

0.0

As in the prior year, the majority of assets, liabilities, revenue,
net income for the year and carrying amount of the equity
investment is attributable to FSD Fahrzeugsystemdaten GmbH,
Dresden. The equity investment in FSD FahrzeugsystemdatenGmbH has strategic reasons.
6.5 OTHER NON-CURRENT FINANCIAL ASSETS
Dec. 31, 2020

Dec. 31, 2019

Shares in affiliates

33,001

68,436

Other investments

1,614

1,659

Loans to affiliates

14,531

13,998IN THOUSAND EUR

As of December 31, 2019, the fair value of shares in affiliates, which are not included in the consolidated financial statements, broke down as follows:
Fair value
IN MILLION
EUROS

Number ofentities

Fair value
spreadIN MILLION
EUROS

Dec. 31, 2019

Aggregated non-current assets
Aggregated non-current liabilities

amount to 19.3 million euros. Of this, 34.4 million euros had anegative effect on other comprehensive income in the fiscal year.
This is largely due to the first-time consolidation of several companies in fiscal year 2020. The fair value of the shares in affiliates
not included in the consolidated financial statements breaks
down by region as of December 31, 2020 as follows:

Loans to associates

500

0

Other loans

94

147

Securities

11,473

9,605

Sundry other non-current
financial assets

3,342

3,385

64,555

97,23033.0 million euros thereof is recognized as shares in affiliates
and 14.5 million euros is recognized as non-current loans toaffiliates.

DEKRA measures equity instruments at fair value through othercomprehensive income. The cumulative amounts recognized inother comprehensive income from the remeasurement of shares
D E K R A Financial Report 2020

Region37.3

430.0 – 2.8

South-West Europe

23.0

10

0.0 – 12.4

East & South Asia

14.0

3

0.0 – 9.7

North-West Europe

10.0

9

0.0 – 4.8

Germany

3.4

6

0.0 – 3.0

North America

1.4

1

1.4

South America

0.0

3

0.0

Southern Africa &Oceania

0.0

1

0.0

IN THOUSAND EUR

Level 1

Loss allowances as of Jan. 1–3,148

0

0

–401

0

0

–3,54900

Loss allowances as of Dec. 31

IN THOUSAND EUR

Level 1

Level 2

Level 3

Loss allowances as of Jan. 1–4,08300

Utilization

24

0

0

Reclassifications

911

0

0

–3,14800

The risk provisioning for the other non-current financial assets
amounts to –184 thousand euros (prior year: -293 thousand
euros).
6.6 OTHER NON-CURRENT ASSETS

Other non-current assets break down as follows:
Dec. 31, 2020

Dec. 31, 2019

Reimbursement claims
from employer’s pension
liability insurance

1,869

1,237

Other non-current assets

7,920

7,464

9,789

8,701

Dec. 31, 2020

Dec. 31, 2019

IN THOUSAND EUR

68.4 million euros thereof is recognized as shares in affiliates,
14.0 million euros is recognized as non-current loans to affiliates
and 6.7 million euros is recognized as current loans to affiliates.
The increase in loans to affiliates is mainly due to issuing
additional loans.
Securities increased slightly compared to the prior year.
Net impairment losses of 324 thousand euros (prior year: net
reversals of impairments of 592 thousand euros) were recognized in 2020. The accumulated reversals of impairments of the
securities amount to 472 thousand euros (prior year: 842 thousand euros).
Risk provisioning for the loans to affiliates and other loans
developed in the reporting period as follows:

Allocations

In the prior year, the risk provision for loans to affiliates andother loans developed as follows:

Loss allowances as of Dec. 31

Central East Europe &Middle East

Level 261

Current assets

6.7 INVENTORIESIN THOUSAND EUR

Materials and supplies

1,388

1,497

Work in progress

12,7215,000

Merchandise

6,818

4,713

20,927

11,210Level 3The increase in work in progress compared to the prior year islargely attributable to the changed underlying conditions (dueto the COVID‑19 pandemic among other things) in the Training Service Division in Hungary.

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Notes

Notes

6.8 CONTRACT ASSETS AND TRADE RECEIVABLES

Foreign currency receivables are initially translated at theexchange rate on the transaction date in accordance withIAS 21.21; they are measured at the closing rate in accordancewith IAS 21.23. The difference is recognized through profit or loss.
IN THOUSAND EUR

Dec. 31, 2020

Dec. 31, 2019

The maturities of trade receivables break down as follows:GrossamountDec. 31,
2020

Lossallowance
Dec. 31,2020

Not past due – 180 days past due

457,250–6,482

Past due between 181 – 240 days

2,290

–694

IN THOUSAND EUR

56,711

71,582

Past due between 241 – 360 days

3,140

–1,945Trade receivables, gross

480,001

519,235

Past due more than 360 days

17,321–16,383

480,001–25,504–1,034–1,136

Loss allowances on
trade receivables–25,504–21,201

510,174

568,480

In the prior year, the maturities of trade receivables broke down
as follows:2019–1,136–1,484

Allocations–48

Utilization

9

Reversal

141

Loss allowances as of Dec. 31–1,034

Impairment of other current financial assets developed asfollows:
2020

2019

Loss allowances as of Jan. 1–4,402–1,850–157

Allocations–1,784–1,803

4

Utilization

84

29

501

Reversal

1,537

16

Reclassifications

–850

–794

–5,415–4,402–1,136

IN THOUSAND EUR

Loss allowances as of Dec. 31

Expenses incurred for the allocation to loss allowances areincluded under other operating expenses.
6.10 OTHER CURRENT ASSETS

Loss
allowance
Dec. 31,2019

Not past due – 180 days past due

481,909–4,658

Securities

Past due between 181 – 240 days

6,798

–1,025

Past due between 241 – 360 days

7,973

–1,928

Past due more than 360 days

22,555–13,590519,235–21,201

Write-downs on trade receivables break down as follows:
2020

2019

Loss allowances as of Jan. 1–21,201–20,214

Allocations–12,170–8,104

Utilization

1,770

3,244

Reversal

6,097

3,873

–25,504–21,201

IN THOUSAND EUR

Loss allowances as of Dec. 31

D E K R A Financial Report 2020

This item principally contains prepaid expenses and other current tax receivables.

6.9 OTHER CURRENT FINANCIAL ASSETS

GrossamountDec. 31,2019

IN THOUSAND EUR

Contract assets are recognized for unbilled services as of thereporting date. These services are largely allocated to the­Product Testing, Industrial Inspection and Training Service
Divisions. Amounts recognized under contract assets are reclassified to trade receivables after defined invoicing dates or after
the service has been concluded and inspected by the customer.
Any remaining performance obligations from contracts
included under contract assets are usually satisfied and invoiced
within the following fiscal year.
Trade receivables do not bear interest and are usually due
for payment within 30 to 60 days.

2020

IN THOUSAND EUR

Loss allowances as of Jan. 1

Contract assets
Loss allowances oncontract assets

None of the contract assets are past due. Loss allowances oncontract assets developed as follows:

63

Dec. 31, 2020

Dec. 31, 2019

764

1,100

Receivables from affiliates andother investees and investors

120,645

130,493

Sundry other current
financial assets

99,727

99,698221,136

231,291

IN THOUSAND EUR

Receivables from affiliates and other investees and investors
contain liabilities from income tax and sales tax, profit transfersfrom DEKRA SE and other cost allocations to the owner totaling 61,420 thousand euros (prior year: 84,317 thousand euros),which are offset against receivables from the cash pool andother cost allocations of 174,371 thousand euros (prior year:
203,264 thousand euros). The decrease in this item is primarily
attributable to the lower receivables from the cash pool. This iscounterbalanced by higher levels of receivables from profit andloss transfer agreements compared to the prior year. Other
financial assets largely include reimbursement claims from loss
adjustments of 57,998 thousand euros (prior year: 72,317 thousand euros).

6.11 CASH AND CASH EQUIVALENTS

The development of cash and cash equivalents as defined by
IAS 7 is presented in the statement of cash flows.
Cash and cash equivalents break down as follows:
Dec. 31, 2020

Dec. 31, 2019

Cash at banks

165,282

89,289Cash on hand

1,185

1,654

Cash equivalents less than
3 months

1,005

1,366

167,472

92,309IN THOUSAND EUR

Cash at banks includes short-term deposits with terms of up to
three months.

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Notes

Notes

Bad debt allowances on cash and cash equivalents developed as follows:
IN THOUSAND EUR

Loss allowances as of Jan. 1
Allocations
Loss allowances as of Dec. 31

Dec. 31, 2020

Dec. 31, 2019

–43

–43

–73

0

–116

–43

6.12 EQUITY

For information on the development of equity, refer to the statement of changes in equity. Effects from the first-time applicationof new accounting standards are also presented in the statementof changes in equity.
The capital stock of DEKRA SE remains unchanged at
25,565 thousand euros. It is divided into 10,000,000 no-par
value bearer shares.
The capital reserves of 610,529 thousand euros (prior year:
585,529 thousand euros) mainly include contributions from
DEKRA e.V., Stuttgart. A contribution of 25,000 thousand euros(prior year: 25,000 thousand euros) was made to the capitalreserves in the reporting year.
Revenue reserves contain the Group profit for the period
and the profits of consolidated companies generated in prioryears to the extent these have not been distributed or transferred. There is a profit and loss transfer agreement in place
between DEKRA SE and the parent. The profit transfer isreported through other comprehensive income as a transaction
with the equity investor. The difference between the profit transfer in accordance with German commercial law and the IFRS
result is recorded in the revenue reserves. Changes in actuarial
gains and losses from defined benefit plans, the gains or losses
from the fair value measurement of hedging instruments andequity instruments, and deferred taxes not recognized throughprofit or loss, as well as the translation reserve are contained inaccumulated other comprehensive income.
As of the reporting date, issued shares had all been fully
paid in.

6.13 NON-CONTROLLING INTERESTSFor the change in non-controlling interests, please refer to thestatement of changes in equity.
There are non-controlling interests in those entities thatare shown in the list of shareholdings (note 14) with a share incapital of less than 100%, unless options to the non-controllinginterests were arranged in the course of the business combination. A purchase price liability is recognized for these interestsin accordance with IAS 32 and non-controlling interests are
therefore not presented.
Pursuant to the revised IAS 27, the profit or loss for theyear attributable to non-controlling interests must be allocatedto non-controlling interests even if the losses exceed the shareof non-controlling interests in capital. Negative non-controllinginterests are not reported for those non-controlling interests towhich IFRS 3 (old version) applies.
The information below presents the required pro rata
financial information of the significant entities with non-­controlling interests (DEKRA iST Reliability Services Inc.,
Hsinchu, Taiwan; DEKRA iST Reliability Services Limited,
Kunshan, China; and DEKRA Testing Services (Zhejiang) Ltd.,
Zhejiang, China).
Dec. 31, 2020

Dec. 31, 2019

Aggregated non-current assets

13,682

12,902Aggregated current assets

8,570

10,108Aggregated non-current liabilities

2,375

2,139

Aggregated current liabilities

4,803

5,908

2020

2019

9,742

11,274602

1,189

IN THOUSAND EUR

IN THOUSAND EUR

Aggregated revenue
Aggregated net income for the year

Of these amounts, non-current assets of 11,434 thousand euros,
current assets of 4,000 thousand euros, non-current liabilitiesof 2,058 thousand euros, current liabilities of 3,524 thousand
euros, revenue of 5,715 thousand euros and net income for theyear of 580 thousand euros are attributable to DEKRA iST­Reliability Services Inc., Hsinchu, Taiwan.

D E K R A Financial Report 2020

6.14 P ENSIONS AND OTHER
POST-EMPLOYMENT BENEFITSIN THOUSAND EUR

Pension provisions in Germany
Pension provisions inother countries

Dec. 31, 2020

Dec. 31, 2019

520,249

513,367

19,933

17,604

540,182

530,971

The Group has both defined benefit and defined contributionplans for commitments for retirement, invalidity and surviving
dependants’ pensions based on works agreements and individual contractual agreements.
These pension plans grant pension benefits, the level ofwhich depends on the length of service and eligible income. The
age limit is the respective legal retirement age for the statutory
pension insurance. The pension is paid in part directly by thecompanies that make the pension commitments and in part bya legally independent welfare fund (DEKRA Unterstützungskasse e.V., Stuttgart).
The obligations relating to the consolidated member
companies are included in full in these consolidated financial
statements. The benefits are partly financed internally by systematic accumulation of provisions and partly by contribution
payments to employer’s pension liability insurance. The direct
and indirect commitments are defined benefit obligations forwhich assets (for example, through the conclusion of employer’s pension liability insurance policies) have been set aside
within DEKRA Unterstützungskasse e.V., Stuttgart. In addition, DEKRA implemented the setting up of a Contractual
Trust Arrangement (CTA) effective October 24, 2017 to safeguard the pension obligations from these pension plans. A
trust agreement to safeguard pension entitlements was enteredinto with Allianz Treuhand GmbH, Stuttgart, which acts as
the trustee in a two-tier trust arrangement (administrative
trust and collateral trust). The funds transferred to fund thepension obligations are managed in trust by Allianz TreuhandGmbH, Stuttgart, and are earmarked for use solely for the settlement of pension obligations.

65

The company pension scheme was reorganized with effectas of January 1, 2012 (DEKRA company pension). Claims vested
prior to this date were not affected. Within the scope of thereorganization, direct commitments were made as defined contribution plans in accordance with the rules of separately concluded works agreements. The pension plan is described as adefined contribution plan, as the amount of the benefit isderived from and determined by previously defined pension
contributions. In addition to the pension contribution paid by
the employer, employees can increase this amount by converting salary components (deferred compensation).
The employer’s pension liability insurance and assets of
DEKRA Unterstützungskasse e.V., Stuttgart, and the legally separate funds of the CTA are treated as plan assets in accordancewith IAS 19.113. DEKRA Unterstützungskasse e.V., Stuttgart,has an advisory board which is regularly informed about thesituation of the assets in the fund.
The pension provisions in other countries mainly relate topension plans and one-off termination benefits when employees
commence retirement.
The defined benefit obligations are generally calculated
annually by independent actuaries using the projected unit
credit method. The 2018 G mortality tables of Prof. Dr. Klaus
Heubeck are used for the German pension obligations while
generally accepted mortality tables are used for the foreign obligations.
At some foreign entities, there are multi-employer plansfor defined benefit plans. The volume of these plans is immaterial for the DEKRA Group.
Apart from the general interest, inflation, longevity andjurisdiction risks, there are no particular company-specific risks
for the existing plans. The longevity risk is taken into consideration by using mortality tables when calculating the obligation.
In particular, the mortality tables take into account the expected
continued increase in life expectancy by means of appropriate
assumptions. When calculating the obligation, the inflation risk
is adequately taken into account at 1.75% p.a. using a long-term
approach and according to information currently available. It
also has an effect on the review of current pensions. No employment-law related risks due to Supreme Court rulings that could
affect the plans are currently known.

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Notes

Notes

67

Defined benefit plans

Details of the carrying amount posted to the statement of financial position for provisions for pensions and similar obligations
are as follows:
IN THOUSAND EUR

Pension obligation

Plan assets (–)

Total

As of Jan. 1, 2019

1,013,059–543,586

469,473

Current service cost

19,6870

19,687

Past service cost

1,890

0

1,890

Net interest cost (standard interest)

17,068–9,367

7,701

Net pension cost according to the income statement

38,645–9,36729,278Actual return on plan assets less “net interest cost”

0–16,168–16,168

–566

0

–566

Actuarial gain/loss from changes in assumptions based on experience–6,602–19–6,621

Actuarial gain/loss from changes in financial assumptions

101,1110

101,111

Change from asset ceiling unless contained in net interest expense

1,110

0

1,110

Remeasurement of defined benefit pension plans

95,053–16,187

78,866

Benefits paid

–30,728

16,794–13,934

339

–339

0

Employer contributions

0–24,431–24,431

Employee contributions

6,815–6,251

564

Total payments–23,574–14,227–37,801

Changes in the consolidation group–2,980–5,865–8,845

As of Dec. 31, 2019

1,120,203–589,232

530,971

thereof funded

1,062,330

Actuarial gain/loss from changes in demographic assumptions

Plan settlements

thereof unfunded

57,873

D E K R A Financial Report 2020

IN THOUSAND EUR

Pension obligation

Plan assets (–)

Total

As of Jan. 1, 2020

1,120,203–589,232

530,971

22,415022,415Current service cost
Past service cost

891

0

891

Net interest cost (standard interest)

10,778–5,7705,008

Net pension cost according to the income statement

34,084–5,77028,314

Actual return on plan assets less “net interest cost”

0

1,948

1,948

356

0

356

Actuarial gain/loss from changes in assumptions based on experience–10,894

95–10,799

Actuarial gain/loss from changes in financial assumptions

35,329035,329

–119

0

–119

Remeasurement of defined benefit pension plans

24,672

2,043

26,715

Benefits paid

–32,712

18,345–14,367

24

–24

0

Employer contributions

0–32,444–32,444

Employee contributions

7,606–6,772834–25,082–20,895–45,977

167

–8

159

As of Dec. 31, 2020

1,154,044–613,862

540,182

thereof funded

1,092,500

Actuarial gain/loss from changes in demographic assumptions

Change from asset ceiling unless contained in net interest expense

Plan settlements

Total payments
Changes in the consolidated group

thereof unfunded

61,544

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Notes

Notes

Plan settlements are attributable to the settlement of obligations due to the termination of employment relationships.
The weighted average term of the remainder of benefit obligations is 14.43 years (prior year: 14.61 years).
The expected future pension payments for the coming fivefiscal years are as follows:
IN THOUSAND EUR

Expected
pensionbenefitpayments

2021

35,0822022

37,7802023

39,0652024

40,641

Key parameters

When calculating the benefit obligation according to the projected unit credit method, the following key parameters apply
for the DEKRA Group:Dec. 31,
2020

2025

41,162The benefit obligation in proportion to plan assets reflects thefunded status of the benefit plan in question, with any excess ofthe benefit obligation over plan assets constituting a plan deficit.
Both the benefit obligation and plan assets can vary over time,leading to an increase/decrease in the plan deficit. Reasons forsuch fluctuation can include changes in market interest rates
and thus in the discount rate, or adjustments to actuarial
assumptions.
The DEKRA Group’s plan assets mostly comprise employer’s pension liability insurance policies and are subject to only
limited fluctuation on account of the existing minimum
returns. The CTA was primarily funded by the contribution of
specialized funds and cash and cash equivalents. In principle,
the separate trust assets of the CTA are subject to the same risks
as direct capital investments. We refer in this respect to our
explanations in note 10. The recognized plan deficit is mostly
covered by cash flow from operating activities.
It is the long-term goal of the DEKRA Group to gradually
increase plan assets in order to cover the deficit.

GermanyIN %Other countries
Dec. 31,2019

Dec. 31,2020

Dec. 31,2019

Changes inassumptions

Increase inassumption

Decrease inassumption

Interest rate

0.5%

5.8%
decrease

6.7%
increase

Salary trend

0.5%

0.4%
increase

0.4%
decrease

Pension trend

0.5%

5.7%
increase

5.2%
decrease

0.5%

0.1%
decrease

0.1%
increase

One year

5.2%
increase

5.2%
decrease

Interest rate

0.75

1.00

0.87

0.91

EmployeeturnoverIncrease insalaries

2.00

2.00

1.48

1.66

Age

Increase inpensions

1.75

1.75

2.10

1.50

The employer contributions to plan assets are expected toamount to 28.0 million euros in the next fiscal year (prior year:
30.5 million euros).
Defined contribution plans

Part of the pension costs relating to the majority of employees,
especially in Germany, is the statutory pension. For several­German and foreign entities, there are voluntary defined contribution plans for post-employment benefits. Expenses related todefined contribution plans, including pension insurance contributions, amounted to 111.0 million euros in the reporting year
(prior year: 112.6 million euros). The future amount of these
expenses essentially depends on the development of the underlying pension insurance systems.

Plan assets

The figures given are averages weighted with the present valueof the benefit obligation in question. The obligations in othercountries, which are determined taking into account country-specific measurement bases and parameters, are immaterial.
German pension commitments are partly financed
through DEKRA Unterstützungskasse e.V., Stuttgart. The assetsof DEKRA Unterstützungskasse e.V., Stuttgart, met the criteria
necessary to qualify as plan assets in accordance with IAS 19.
For individual entities, pension commitments arefinanced through payments to an insurance company. The
resulting plan assets include qualifying insurance policies only.
Sensitivity analysis

The table below shows the effects on the benefit obligation as aresult of any change in the parameters. The analysis relates toparameters where a change was considered possible as of thereporting date. Any correlation between the parameters was nottaken into account in the calculation.

D E K R A Financial Report 2020

The fair value of plan assets breaks down as follows by asset
class:IN THOUSAND
EUR

Dec. 31,2020

thereofmarket pricequoted onanactivemarketDec. 31,2019

thereofmarket pricequoted onanactivemarketEmployer’s
pensionliability
insurance

388,466

0368,4960

Securities

215,794

0

214,946

0

9,602

0

5,790

0

613,8620589,232

0

Other

69

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Notes

71

6.15 NON-CURRENT AND CURRENT PROVISIONSIN THOUSAND EUR

IN THOUSAND EUR

As ofJan. 1, 2020

Allocation

Additionsto theconsolidated
group

Utilization

Reversal

Reclassifications

As ofDec. 31, 2020

Non-current provisions

As ofJan. 1, 2019

Allocation

Additionsto theconsolidated
group

Utilization

Reversal

Reclassifications

As ofDec. 31, 2019Non-current provisions

Other personnel provisions

3,673

376

0

–113

–203

45

3,778

Other personnel provisions

4,644

637

0

–743

–901

36

3,673

Phased retirement

161

–182

0

120

0

45

144

Phased retirement

thereof from phased retirement obligation

1,473

26

0

–18

0

0

197

0

0

–72

0

36

161

1,481

thereof from phased retirement obligation

1,600

345

0

–472

0

0

1,473

–1,403

–345

0

400

0

36

–1,312

2,688

584

0

–347

0

0

2,925

thereof from phased retirement plan assets–1,312

–208

0

138

0

45

–1,337

thereof from phased retirement plan assets

Long-service award

2,925

487

0

–268

–1

0

3,143

Long-service award

Sundry other personnel provisions

587

71

0

35

–202

0

491

Sundry other personnel provisions

1,759

53

0

–324

–901

0

587

Other non-personnel provisions

12,2419,593

0–1,228–4,324–246

16,036

Other non-personnel provisions

15,1316,044

0–7,078–1,8560

12,241

3,541

4,101

0

0

–3,5280

4,114

Warranty provisions

7,097

3,710

0

–6,266–1,000

0

3,541

5,727

1,997

0

–622

–567

0

6,535

Warranty provisions
Litigation, damages and similar obligations

6,535

3,844

0

–1,031

–563

–246

8,539

Litigation, damages and similar obligations

Other provisions

2,165

1,648

0

–197

–233

0

3,383

Other provisions

15,9149,969

0–1,341–4,527–201

19,814

Other personnel provisions

5,476

3,053

0

–1,414

–464

0

6,651

Other non-personnel provisions

19,441

13,98443–4,197–8,35843

20,956

Current provisions

Other restructuring

2,307

337

0

–190

–289

0

2,165

19,7756,681

0–7,821–2,75736

15,914

Other personnel provisions

2,182

5,656

0

–1,878

–484

0

5,476

Other non-personnel provisions

13,481

14,2230–5,918–2,3450

19,441

Current provisions

665

1,430

0

–665

0

0

1,430

Other restructuring

157

665

0

–157

0

0

665

Potential losses

1,016

1,544

0

–230

–74

0

2,256

Potential losses

1,191

257

0

–319

–113

0

1,016

Litigation, damages
and similar obligations

6,498

2,513

0

–702

–241

246

8,314

Litigation, damages
and similar obligations

5,000

2,189

0

–118

–573

0

6,498

Other provisions

11,2628,497

43–2,600–8,043

–203

8,956

Other provisions

7,133

11,1120–5,324–1,6590

11,262

24,917

17,03743–5,611–8,82243

27,607

15,663

19,8790–7,796–2,8290

24,917

The reversal of other current provisions largely results from anamended risk assessment in the Claims & Expertise Service
Division.

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Notes

Notes

In France, there are non-current obligations relating to warranties and similar obligations of 9,969 thousand euros (prior year:
9,369 thousand euros), the risks of which exceed the insurance
cover. There are also long-term obligations based on country-­
specific dues. As in the prior year, non-current provisions do notinclude significant effects of unwinding the discount.
The provisions cover all identifiable obligations to third
parties in accordance with IAS 37. They are recognized in theamount that will probably be required.
6.16 N ON-CURRENT AND CURRENT
FINANCIAL LIABILITIES

Dec. 31, 2020

Dec. 31, 2019

201,117204,399

Trade payables

34

246

Derivative financial instruments

59

74

Liabilities to banks

Lease liabilities
Liabilities from business combinations

266,498

273,774

20,654300

488,362

478,793

The increase in other financial liabilities by 5,612 thousand euros is primarily attributable to the increase in liabilities
to DEKRA Unterstützungskasse e.V., Stuttgart.
DEKRA SE granted its managers and employees theoption of subscribing to profit participation rights of up to
10,737 thousand euros (4.2 million profit participation rights at
2.55645 euros each). Of this total, 2,400,799 (prior year:
2,515,135) profit participation rights were subscribed. The subscribed participation capital ensures participation in theadjusted consolidated earnings of DEKRA SE with a minimum
return of 4% p.a. and a maximum return of 30% p.a. Subscribed
profit participation rights can be terminated unilaterally by therecipient at short notice at any time.

Dec. 31, 2020

Dec. 31, 2019

Liabilities to banks

75,534

180,222

Profit participation rights

12,652

13,252Financial liabilities to affiliates

43,57822,844

Financial liabilities to associates

976

944

Financial liabilities to otherinvestees and investors

131

79

0

25

Lease liabilities

96,66984,578

Liabilities from business combinations

4,149

20,742

Liabilities to employees

27,46031,711

6.17 TRADE PAYABLES AND CONTRACT LIABILITIESOther financial liabilities

18,728

13,116

279,877

367,513

In the fiscal year, trade payables and contract liabilities come tothe following amounts:

IN THOUSAND EUR

Derivative financial instruments

Non-current financial liabilities
IN THOUSAND EUR

Current financial liabilities

The decrease in liabilities to banks of 107,970 thousand euros
overall is mainly due to repaying current loans. At the sametime, loans and promissory notes previously recognized as
non-current financial liabilities were reclassified as current
financial liabilities on account of their maturity.
Financial liabilities to affiliates include liabilities from the
cash pool, income tax and sales tax as well as other cost allocations, some of which were netted with receivables from affiliates.
The increase by 20,734 thousand euros is primarily attributable
to higher liabilities from tax allocations.
Lease liabilities that had previously been recognized as
non-current were also reclassified as current lease liabilities on
account of their maturity. This largely explains the decrease in
non-current lease liabilities by 7,276 thousand euros and thesimultaneous increase of current lease liabilities by 12,091 thousand euros.
The decline in current liabilities to employees of
4,251 thousand euros is largely due to these being billed at an
earlier point in time.

D E K R A Financial Report 2020

2020

2019

Amounts recognized in
the contract liability at the
beginning of the period

34,35330,453

Performance obligations
satisfied in previous periods

2,151

29

36,50430,482

IN THOUSAND EUR

Revenue recognized in
the fiscal year:

6.18 OTHER NON-CURRENT AND CURRENT LIABILITIESOther non-current non-financial liabilities primarily include
liabilities to the pension guarantee association and security
deposits received.
Other current liabilities break down as follows:
Dec. 31, 2020

Dec. 31, 2019

Personnel-related liabilities

234,941

218,311

Other liabilities for taxes

58,798

57,104Social security

35,04037,594

Prepayments received from loss
adjustments

17,705

14,811

Sundry other

23,981

18,197

370,465

346,017

IN THOUSAND EUR

Dec. 31, 2020

Dec. 31, 2019

Trade payables

113,554

112,219

Contract liabilities

54,67145,449168,225

157,668

IN THOUSAND EUR

Contract liabilities include prepayments received from customers for uncompleted services. Prepayments are generally current.
DEKRA receives payments from customers based on asettlement schedule that is an integral part of the contracts.
Contract assets relate to the conditional right to consideration
for the full satisfaction of the contractual obligations. Receivables are recognized as soon as DEKRA fulfills its contractual
obligations. Contract liabilities relate to payments that arereceived prematurely, i.e., before the contractual obligations
have been satisfied. Contract liabilities are recognized as income
as soon as the contractual service has been rendered. In fiscal
year 2020, revenue included in contract liabilities as of January
1, 2020 was recognized as follows:73

Personnel-related liabilities chiefly relate to outstanding
variable salary components and accrued vacation.
Liabilities from taxes principally relate to sales tax andwage tax.
The liabilities are carried at fair value.

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Notes

Notes

7 S TAT EMEN T O F C ASH FL O WS
The statement of cash flows shows how the cash and cash equivalents changed in the course of the reporting year as a result ofcash inflows and outflows. In accordance with IAS 7, a distinction is made between cash flows from operating, investing andfinancing activities. Cash flows from operating activities are
determined indirectly while cash flows from investing andfinancing activities are determined directly.
The composition of cash and cash equivalents matches thenet cash and cash equivalents disclosed in the statement offinancial position as of the reporting date prior to the consideration of credit losses pursuant to IFRS 9. Cash and cash equivalents are not subject to any restrictions.
The cash flow from investing activities includes the following payments from the acquisition and disposal of fully consolidated subsidiaries:
IN THOUSAND EUR

Total purchase/sale priceDec. 31, 2020

Dec. 31, 2019–11,001–7,671

thereof settled/received incash–7,418–7,671

thereof not yet settled/
received–3,583

0

14

1,444

Non‑current assets

420

7,049

Current assets

743

2,350

Non-current liabilities

–54

1,219

Current liabilities

792

1,888

Amount of cash and cash equivalents acquired/disposed of

In addition, the cash flow from investing activities comprises
purchase price payments of 10,914 thousand euros (prior year:
5,824 thousand euros) for further subsidiaries, other units andcash paid for capital increases at non-consolidated companies.
These acquisitions did not result in any liabilities due to variablepurchase price components (prior year: 0 euros).
The carrying amount of the receivables acquired approximates the fair value.

Amount of assets and liabilities
acquired/disposed of

The development of liabilities stemming from financing activities is as follows:

Carrying
amountDec. 31,2019

CashchangesNon-current loans

204,399

Current loans

IN THOUSAND EUR

Derivative financial instruments
Total liabilities from financing activities *)Non-cash changes
Exchange
rate effects

Business
combinations

Change infair value

Otherchanges

Carrying
amountDec. 31,2020–22,854–1,22237

020,757201,117

180,222–81,117–2,80700–20,764

75,534

99

0

0

0

–40

0

59

384,720–103,971–4,029

37

–40

–7

276,710*) Not including lease liabilities. These are presented separately in note 8.1.

In the prior year, liabilities resulting from financing activities developed as follows:

Carrying
amountDec. 31,2018

CashchangesNon-current loans

261,739

Current loans

IN THOUSAND EUR

Derivative financial instruments
Total liabilities from financing activities *)Non-cash changes
Exchange
rate effects

Business
combinations

Change infair value

Otherchanges

Carrying
amountDec. 31,
2019

6,198

502

0

0

–64,040

204,399

132,593–18,028980

0064,677

180,222

125

0

0

0

–26

0

99

394,457–11,830

1,482

0

–26

637

384,720*) Not including lease liabilities. These are presented separately in note 8.1.

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Notes

Notes

8 O T HER D IS C L O SURE S IN T HE N O T E S

Set out below are the carrying amounts of right-of-use assets
recognized and the movements during the reporting period:

Subtotalbuildings,
vehicles,F&F

IT

Technical
equipment

Total

As of
Jan. 1, 2019374,730

2,404

505

377,639

Depreciation–101,026–1,039–79–102,144

Additions

70,810360

7671,246

Disposals

–524

0

0

–524

Exchange rate
differences

579

–8

0

572

344,569

1,717

502

346,788

Depreciation–94,921–1,023–77–96,021Additions

115,753984

3116,740

Disposals–12,267–10

0–12,277

Exchange rate
differences–2,979–77–1–3,057

As of
Dec. 31, 2020

350,155

1,591

427

352,173

IN THOUSAND
EUR

8.1 LEASESIN THOUSAND
EUR

Leases as lessee

The Group has concluded lease agreements for IT, buildings,
vehicles, technical equipment, as well as furniture and fixturesthat it uses in its operations. Lease agreements for IT generally
have terms between 1 and 5 years, buildings between 1 and 30
years. For vehicles, the term is generally between 1 and 6 years,
for technical equipment between 3 and 7 years. Lease agreements for furniture and fixtures generally have terms between
1 and 10 years. The Group’s obligations under its leases are
secured by the lessor’s title to the leased assets. Several leaseagreements contain extension and termination options.
The Group has also concluded lease agreements for assets
with a term of 12 months or less as well as for low-value assets.
The Group applies the “short-term lease” and “lease of low-value
assets” recognition exemptions for these leases.

Buildings

MotorvehiclesFurnitureandfixtures

Subtotalbuildings,
vehicles,
F&F

As of
Jan. 1, 2019329,557

42,7072,466

374,730

Depreciation–77,531–22,293–1,202–101,026

Additions

51,161

18,1501,498

70,810

Disposals

–102

–20

–402

–524

Exchange rate
differences

527

43

9

579

As of
Dec. 31, 2019

303,61238,587

2,370

344,569

Depreciation–73,685–20,377–859–94,921Additions

101,309

14,025

419

115,753

Disposals–10,517–1,732–18–12,267

Exchange rate
differences–2,861–74–44–2,979As of
Dec. 31, 2020

317,858

30,4291,868

350,155

As of
Dec. 31, 2019

The following table shows the carrying amount of the lease liabilities and change during the reporting period:
2020

2019

As of Jan. 1

358,352

389,506

Additions

115,659

70,485

6,036

6,608

Payments and disposals–114,435–108,828

Exchange rate differences–2,443580

IN THOUSAND EUR

Interest growth

As of Dec. 31

D E K R A Financial Report 2020

363,167

358,352

thereof current

96,66984,578

thereof non-current

266,498

273,774

77

The maturity analysis of lease liabilities is disclosed in note 10.
The following amounts were recognized through profit orloss in the reporting period:
IN THOUSAND EUR

Interest expenses onlease liabilities
Income from subleasing
right-of-use assets,
presented in other revenue

2020

2019

–5,988–6,605

97

101

Expenses for short-term leases
and low-value leases–36,950–27,927

Total–42,841–34,431

The Group had total cash outflows for leases of 102,197 thousand euros in 2020 (prior year: 108,828 thousand euros). In
addition, the Group recognized non-cash additions to right-ofuse assets of 116,739 thousand euros (prior year: 71,051 thousand euros) and lease liabilities of 115,659 thousand euros (prioryear: 70,485 thousand euros) in 2020.
The Group has several lease contracts that include extension and termination options. These options are negotiated bymanagement to provide flexibility in managing the leased-asset
portfolio and align with the Group’s business needs. Management exercises significant judgment in determining whether
these extension and termination options are reasonably certain
to be exercised (see note 3.2).
In the fiscal year, COVID‑19-related rent concessions were
granted on the Group’s own rental relationships. The practical
expedient was exercised for these rental relationships, and theassessment as to whether a pandemic-related rental concessionof a lessor represents an amendment to the lease agreement wassuspended. The amount of 6,543 thousand euros was classified
accordingly as negative variable lease payments and recognizedthrough profit and loss in other operating income.

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Notes

Notes

8.2 OTHER FINANCIAL OBLIGATIONSIn 2020, the Group reported other financial obligations including purchase commitments of 6,429 thousand euros (prior year:
29,754 thousand euros). These are mainly attributable to agreements concluded on commissioned construction projects as wellas to long-term framework agreements.
8.3 C ONTINGENT LIABILITIES, OTHERCONTINGENCIES AND COLLATERAL PROVIDED

As in the prior year, there are no significant bank guarantees orcontingencies. Collateral and warranties of 825 thousand euros(prior year: 825 thousand euros) have been issued. The risk ofutilization is currently deemed to be low. These are due immediately upon utilization of the guarantees.
The DEKRA Group is not involved in any court proceedings that could have a significant influence on its economic or
financial situation.
8.4 GOVERNMENT GRANTS

Government grants of 26,017 thousand euros (prior year:
3,328 thousand euros) were received in the past fiscal year.
These are personnel-related grants of 13,073 thousand euros (seeparagraph 5.4) and grants of 12,944 thousand euros, which werelargely received to mitigate the economic impact of the
COVID‑19 pandemic (see paragraph 5.2). There are no significant and unconsidered unfulfilled conditions or other contingencies in connection with the government grants.

9 C A P I TA L M A N AG EMEN T
DEKRA pursues the goal of sustainably increasing equity. The
aim is to maintain an appropriate debt-to-equity ratio while
improving the EBIT margin. Equity was strengthened in thefiscal year by a contribution to the capital reserves of 25.0 million euros as well as an increase in the revenue reserves of
51.5 million euros. Differences from the currency translation of
the financial statements prepared in foreign currency by consolidated subsidiaries had a negative effect of –10.3 million

euros on equity. The DEKRA Group’s equity ratio stood at
29.5% (prior year: 28.9%) as of the end of the reporting period.

Financial instruments

1 0 FIN A N C I A L M A N AG EMEN Ta) Financial assets at amortized costb) Financial assets at fair value through other comprehensive
incomec) Financial assets at fair value through profit or lossd) Financial liabilities at amortized coste) Financial liabilities at fair value through profit or lossf) Derivative financial instruments designated as hedging
instruments

The Group’s financial management includes cash and liquidity
management as well as the management of market price risks(interest, currency) and credit risks.
Cash management determines the required or surplus
cash for all DEKRA entities. Timely account management
ensures that the necessary funds for payments are available
where they are needed, with the aim of keeping external investment and borrowing to a minimum.
Liquidity management ensures all payment obligations of
the entities in the DEKRA Group are always met. To this end,
the liquidity planning determines cash flows from operating
activities, secures foreseeable liquidity requirements at an earlystage and invests surplus liquidity on the money market.
Market price risk management is responsible for limiting
the impact of interest rate and currency fluctuations on theGroup’s earnings. For this purpose, the market price risks are
determined and used as a basis for hedging decisions. Such decisions include the selection of hedging instruments, the volume
to be hedged and the period to be covered. DEKRA used derivative financial instruments in the fiscal year to hedge variable-rate finance arrangements.
The risk volume involved in the management of default
risk includes securities investments and the investment of cash
and cash equivalents in financial institutions as part of liquidity
management, as well as the credit risk relating to end customers
due to the granting and systematic monitoring of payment
terms from trade.
Short-term investments of cash and cash equivalents are
only made with top-rated financial institutions and on the basisof current ratings from rating agencies as well as taking into
account current CDS spreads. We use commercial credit agencies to assess the creditworthiness of our customers and in casesof doubt, upfront payment or bank guarantees are required.

D E K R A Financial Report 2020

Pursuant to IFRS 9, financial assets and liabilities are allocatedto one of the following categories:

The following table shows the net gains/losses for eachcategory:
IN THOUSAND EUR

Financial assets at fair value
through profit or loss

Dec. 31, 2020

440

1,276
–3,891

Financial assets atfair value through othercomprehensive income

271

348

Financial liabilities at fairvalue through profit or loss

–851

–3,346–5,934–7,205–10,880–12,818

Financial liabilities atamortized cost

Income from assets at fair value through profit or loss is
attributable to income from changes in market value and distributions.
The expense from financial liabilities at fair value throughprofit or loss stems from the increase in liabilities from put
options.
The revaluation surplus for equity instruments at fairvalue through other comprehensive income declined by
34.4 million euros (prior year: 16.0 million euros increase)largely on account of the first-time consolidation of several
companies in fiscal year 2020. This amount was recognized inother comprehensive income.
The following tables show a breakdown of line items into
categories and classes and the allocation of financial assets andliabilities at fair value in the statement of financial position to
the fair value hierarchy:

Dec. 31, 2019

–4,806

Financial assets at amortized cost79

Net gains and losses mainly comprise interest expenses, interest
income, dividends, increases and impairments in value andimpairment losses as well as gains or losses on disposal. The
increase in net losses for financial assets at amortized cost primarily results from higher expenses incurred for the allocation
to specific bad debt allowances.
The net gains from assets at fair value through other comprehensive income mainly result from dividend-equivalent distributions.

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Notes

Notes

IN THOUSAND EUR

IN THOUSAND EUR

Carrying
amountDec. 31,2020

Financialassets at
amortized
cost

Financialassets atfair value
throughother comprehensive
incomeFinancialassets atfair value
through
profit or
loss

Fair
value

thereoffair valuelevel 1

thereoffair valuelevel 2

thereoffair valuelevel 3

AssetsNon‑current assets
034,615034,6150034,615

Securities

11,4730011,473

11,473

0

11,4730Loans

15,125

15,125

0

0

n/a

n/a

n/a

n/a

3,342

3,342

0

0

n/a

n/a

n/a

n/a

64,555

18,46834,615

11,47346,0880

11,473

34,615

Financialliabilities atfair value
throughother comprehensive
incomeFinancialliabilities atfair value
through
profit or
loss

Fair
value

thereoffair valuelevel 1

thereoffair valuelevel 2

thereoffair valuelevel 3

Derivative financial instruments designatedas hedging instruments

59

0

59

0

59

0

59

0

Liabilities from business combinations

20,6540020,654

20,6540020,654

Financial liabilities

201,117201,117

0

0

n/a

n/a

n/a

n/a

Lease liabilities

266,498

266,498

0

0

n/a

n/a

n/a

n/a

34

34

0

0

n/a

n/a

n/a

n/a

488,362

467,64959

20,654

20,713059

20,654

Other non-current liabilities

Current liabilities

Current assets
Cash and cash equivalents

Financialliabilities atamortized
cost

Non-current liabilities
34,615Trade receivables

Carrying
amountDec. 31,2020

Equity and liabilities

Shares in affiliates and investees

Other financial assets

81

454,497454,497

0

0

n/a

n/a

n/a

n/a

Trade payables

113,554

113,554

0

0

n/a

n/a

n/a

n/a

Profit participation rights

12,652

12,652

0

0

n/a

n/a

n/a

n/a

Liabilities from business combinations

4,149

0

0

4,149

4,149

0

0

4,149

167,472

167,472

0

0

n/a

n/a

n/a

n/a

764

0

0

764

764

528

236

0

Receivables from affiliates and investees

120,645

120,645

0

0

n/a

n/a

n/a

n/a

Financial liabilities

75,53475,534

0

0

n/a

n/a

n/a

n/a

Other financial assets

99,727

99,727

0

0

n/a

n/a

n/a

n/a

Liabilities to affiliates

43,57843,578

0

0

n/a

n/a

n/a

n/a

843,105

842,341

0

764

764

528

236

0

Liabilities to associates

976

976

0

0

n/a

n/a

n/a

n/a

Securities

Liabilities to other investees and investors
Other current liabilities
Lease liabilities

907,660

860,80934,615

12,23746,852

There were no transfers between the various levels in the measurement hierarchy during 2020.

D E K R A Financial Report 2020

528

11,70934,615

131

131

0

0

n/a

n/a

n/a

n/a

46,18846,188

0

0

n/a

n/a

n/a

n/a

96,66996,669

0

0

n/a

n/a

n/a

n/a

393,431389,282

0

4,149

4,149

0

0

4,149

881,793856,93059

24,80324,862059

24,803

Other current liabilities include liabilities to employees pursuant to IAS 19 in the amount of 27,460 thousand euros. These liabilities
to employees pursuant to IAS 19 as well as the non-current and current lease liabilities of 266,498 thousand euros and 96,669 thousand euros, respectively, pursuant to IFRS 16 are not within the scope of IFRS 7. There were no transfers between the various levelsin the measurement hierarchy during 2020.

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Notes

Notes

IN THOUSAND EUR

83

IN THOUSAND EUR

Carrying
amountDec. 31,2019

Financialassets at
amortized
cost

Financialassets atfair value
throughother comprehensive
incomeFinancialassets atfair value
through
profit or
loss

Fair
value

thereoffair valuelevel 1

thereoffair valuelevel 2

thereoffair valuelevel 3

AssetsEquity and liabilities

Non‑current assets

Non-current liabilities

Shares in affiliates and investees

70,096

070,095070,0950070,095

Securities

9,605

0

0

9,605

9,605

762

8,843

0

Loans

14,14414,145

0

0

n/a

n/a

n/a

n/a

Other financial assets

3,385

3,385

0

0

n/a

n/a

n/a

n/a

97,23017,53070,095

9,605

79,700762

8,843

70,095Derivative financial instruments designatedas hedging instruments
Liabilities from business combinations

Carrying
amountDec. 31,2019

Financialliabilities atamortized
cost

Financialliabilities atfair value
throughother comprehensive
incomeFinancialliabilities atfair value
through
profit or
loss

Fair
value

thereoffair valuelevel 1

thereoffair valuelevel 2

thereoffair valuelevel 3

74

0

74

0

74

0

74

0

300

0

0

300

300

0

0

300

Financial liabilities

204,399

204,399

0

0

n/a

n/a

n/a

n/a

Lease liabilities

273,774

273,774

0

0

n/a

n/a

n/a

n/a

246

246

0

0

n/a

n/a

n/a

n/a

478,793

478,419

74

300

374

0

74

300

Trade payables

112,219

112,219

0

0

n/a

n/a

n/a

n/a

Profit participation rights

13,252

13,252

0

0

n/a

n/a

n/a

n/a

Derivative financial instruments
designated as hedging instruments

25

0

25

0

25

0

25

0

Liabilities from business combinations

20,7420020,742

20,7420020,742Financial liabilities

180,222

180,222

0

0

n/a

n/a

n/a

n/a

Liabilities to affiliates

22,844

22,844

0

0

n/a

n/a

n/a

n/a

944

944

0

0

n/a

n/a

n/a

n/a

Other non-current liabilities

Current assets
Trade receivables

498,034

498,034

0

0

n/a

n/a

n/a

n/a

Cash and cash equivalents

92,30992,309

0

0

n/a

n/a

n/a

n/a

Securities

1,100

0

0

1,100

1,100

954

146

0

Receivables from affiliates and investees

130,493

130,493

0

0

n/a

n/a

n/a

n/a

Other financial assets

99,69899,698

0

0

n/a

n/a

n/a

n/a

821,634

820,534

0

1,100

1,100

954

146

0

Current liabilities

Liabilities to associates
Liabilities to other investees and investors

918,864

838,064

70,095

10,70580,800

There were no transfers between the various levels in the measurement hierarchy during 2019.

D E K R A Financial Report 2020

1,716

8,989

70,095

79

79

0

0

n/a

n/a

n/a

n/a

Other current liabilities

44,82844,828

0

0

n/a

n/a

n/a

n/a

Lease liabilities

84,57884,578

0

0

n/a

n/a

n/a

n/a

479,733

458,966

25

20,742

20,7670

25

20,742

958,526

937,38599

21,042

21,141

0

99

21,042Other current liabilities include liabilities to employees pursuant to IAS 19 in the amount of 31,711 thousand euros. These liabilities to employees pursuant to IAS 19 as well as the non-current and current lease liabilities of 273,774 thousand euros and84,578 thousand euros, respectively, pursuant to IFRS 16 are not within the scope of IFRS 7. There were no transfers between thevarious levels in the measurement hierarchy during 2019.

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Notes

Notes

The levels of the fair value hierarchy and their application to ourassets and liabilities are described below:
Level 1:	Market prices quoted on active markets for identicalassets or liabilities
Level 2: 	Other information than quoted market prices thatcan be observed directly (e.g., prices) or indirectly(e.g., derived from prices)
Level 3: 	Information relating to assets and liabilities that is
not based on observable market data
Development of level 3 of the fair value hierarchy:
2020

2019

As of Jan. 1

91,13773,968Additions

8,249

7,042

IN THOUSAND EUR

Disposals–7,630–8,648Fair value changes–32,338

18,776

2,228

3,347

Recognized through profit orloss
Recognized through othercomprehensive income
As of Dec. 31–34,566

15,42959,41891,137The contingent purchase price liabilities were recognized atpresent value.
The non-observable input parameters of liabilities frombusiness combinations primarily include factors such as theoperating result, earnings before depreciation and amortization, financial result and income tax or the development of theworking capital of the acquired business.
As of the reporting date, notable purchase price liabilities
exist for DEKRA New Zealand Ltd., Wellington, New Zealand,and MOVON Test Lab Co. Ltd., Gyeonggi-do, Republic of Korea.

Assuming a change of +10%/–10% in the underlying
parameters regarding non-observable input factors as of thenext possible exercise date, the amount of the purchase priceobligation, including put options and earn-outs, for the significant obligations from business combinations would be 4%
higher/4% lower.
In the fiscal year, contingent purchase price liabilities of
851 thousand euros were expensed through profit or loss. The
amount results from liabilities that still exist as of the reporting date.
Any future changes in value in the purchase price liabilities
will be recognized through profit or loss in subsequent periods.
Shares in affiliates and investees are measured using thediscounted cash flow method. If the interest rate used changes
by +1%/–1% and at the same time the cash flows change by–10%/+10%, the amount of shares in affiliates and investees willchange by –25.9%/+38.4%.
The majority of contractually agreed maturity dates forfinancial instruments at amortized cost are within twelve
months of the reporting date. As such, their carrying amounts
as of the reporting date approximately equate to their fair values. For all items of non-current financial assets and liabilities
not recognized at fair value (except for non-current financial
liabilities), the carrying amount is equal to the fair value.
For loans with longer terms, the present value largely corresponds to the carrying amount as, for the most part, variableinterest rates based on market-dependent interest rates are usedin the contractual agreements.
As regards financial liabilities, the fair value of non-current liabilities due to banks bearing a fixed interest rate is determined based on the present value of the expected future cash
flows. The discount rates are based on market interest rates withreference to the maturities. The fair value of non-current financial liabilities with a carrying amount of 201,117 thousand euros
comes to 203,565 thousand euros (level 2).

D E K R A Financial Report 2020

Risks from financial instruments
Principles of financial management

The main goals of the DEKRA Group’s financial management
are to ensure solvency at all times and to limit financial risks.
Financial derivatives are only used for hedging purposes
for existing or foreseeable hedged items. This does not give riseto any additional risks for the Group. The transactions are only
carried out with marketable instruments.
Liquidity risks

The liquidity required for operations and for implementing strategic measures is ensured through the cash and cash equivalents
held and bank loans committed in writing (working capitalcredit and acquisition lines). Cash and cash equivalents are heldin bank accounts or invested in the form of overnight money
and time deposits as well as short-term money market papers.
A central cash pool has been set up at DEKRA SE for German
subsidiaries as well as the increasing number of international
subsidiaries from the euro zone. Cash pools have also been
established for the subsidiaries in the US (USD), in the UK(GBP) and in Sweden (SEK).
The entities are generally financed centrally through
DEKRA SE.
In order to visualize liquidity risks, the DEKRA Groupprepares an overview of maturities for its undiscounted payment obligations arising from financial instruments.
As of December 31, 2020, the DEKRA Group was exposed
to only a very small risk of being unable to meet its payment
obligations arising from financial instruments in the future. The
DEKRA Group requires sufficient liquidity for future acquisitions, which is ensured by the promissory notes and by longerterm loan commitments. As of December 31, 2020, there are
medium-term credit lines of 450.2 million euros granted inwriting that have not yet been drawn.

85

As of the reporting date, the contractually agreed undiscounted financial liabilities including interest breaks down as
follows:
DEC. 31, 2020
IN THOUSAND EUR< 1 year

1 to 5 years> 5 years

Trade payables

113,554

00

Financial liabilities

76,590183,696

21,495

Other financial liabilities

103,52533

0Derivative financial
instruments (negative)
designated as hedging
instruments

39

20

0

7,489

151,919

223,626

301,197335,668

245,122

DEC. 31, 2019
IN THOUSAND EUR< 1 year

1 to 5 years> 5 years

Trade payables

112,21900

Financial liabilities

183,092

177,041

34,143

Other financial liabilities

81,946246

0Derivative financial
instruments (negative)
designated as hedging
instruments

81

59

0

5,382

219,778

161,299382,720

397,124

195,441

Lease liabilities

Lease liabilities

We also refer to our explanations on the contingent liabilities
in note 8.2, which have an unlimited term.
In addition to liabilities from promissory notes, the liabilities
to banks mostly include short- and medium-term utilization of
credit lines as well as investment financing of foreign subsidiaries.

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Notes

Notes

Credit risk (default risk)

Interest rate risks

Cash flow hedges for variable-interest loans

In the course of its operations, DEKRA is exposed to the risk ofdefault on outstanding receivables. The DEKRA Group counters
this risk with timely receivables management, which entails theregular monitoring of outstanding items as well as timely dunning and collection of receivables. Potential defaults areaccounted for using specific bad debt allowances and portfolio-based bad debt allowances. The maximum default risk is the
carrying amount of the receivables as of the reporting date. There
were no significant risk concentrations as of the reporting date.
DEKRA is also exposed to default risk in relation to cash
investments. In order to minimize these risks as far as possible,
we restrict our cash deposits to counterparties with first-classcredit ratings subject to defined counterparty limits. In addition, there is a limit on the proportion of the entire investment
volume that may be invested with any one counterparty. Investments in securities are only made with investment-grade institutions.
The maximum risk of counterparty default is calculated
in accordance with the carrying amounts of the financial assets
as an equivalent for the maximum default risk. Therefore, as ofDecember 31, 2020, the DEKRA Group was exposed to the­theoretical maximum possible risk of counterparty default
apparent from the table above for the breakdown of carrying
amounts of the financial instruments.
No collateral is pledged by the counterparties for thefinancial instruments held. As of December 31, 2020, with the
exception of trade receivables and loans, no material financial
assets were overdue or affected by amendments to contracts.

In the course of our investing and financing activities, we areexposed to interest rate risks. For borrowing, such risks are
generally managed using interest rate derivatives in definedinterest rate hedge ranges. In relation to investing, interest rate
fluctuations result in changes in the fair values of fixed income
securities. For bonds most (and for shares all) long-term investments are made via funds. In order to manage price risks forthese investment items, financial derivatives are recognized by
the fund management by way of a hedge as necessary.
The risk for the statement of comprehensive income ismeasured in the DEKRA Group using a sensitivity analysis.
This analysis tests the impact on interest income or interest
expense of a shift in the term structure of interest rates by 100
base points.
An upward shift of 100 base points would result in an
increase in the interest result of 4,169 thousand euros (prioryear: 1,997 thousand euros). A downward shift of 100 basepoints would result in a decrease in the interest result of
2,098 thousand euros (prior year: 125 thousand euros).
An upward shift of 100 base points would result in an
increase in the fair value of hedging instruments reported inequity of 41 thousand euros not taking tax effects into consideration. A downward shift of 100 base points would result in adecrease in the fair value reported in equity of 42 thousand
euros before deferred taxes.
Interest derivatives were concluded to hedge the interest
risk for material variable-interest loans and reported as hedging
transactions as defined by IFRS 9.

Interest rate derivatives (interest rate swaps) were concluded inprior fiscal years to hedge the interest rate risk for promissory
notes. Consequently, the interest burden of the loans was specified to a large extent.
The regulations on cash flow hedge accounting wereapplied for derivatives with a nominal volume of 4.0 million
euros and for hedging underlying transactions with a nominal
volume of 20.5 million euros. This resulted in a hedge ratio of20%.
Residual term Dec. 31, 2020
< 1 year

1-2 years

2-3 years

3-4 years

Nominal value
IN THOUSAND
EUR

0

4,000

0

0

Averagehedged interest rate

n/a

1.3%

n/a

n/a

The fair value of the derivative financial instruments, which areinterest rate hedges, is determined using the mark-to-market
method. This involves using the discounted cash flow method
and customary market interest rates.
Interest swaps are recognized at fair value. The effective
portion of the changes in the fair value of the interest swap
determined as a cash flow hedge is recognized in equity; theineffective portion of the changes in the fair value is recognizedthrough profit or loss. The cash flow hedges for the variable-interest portions of the loans did not lead to any ineffective hedges
in the fiscal year to be recognized in profit or loss. The payments
received and made from these interest swaps were netted in theinterest expense and are thus a component of the interest result.
An interest expense of 51 thousand euros was recorded in thefiscal year.
The change in the value of the hedged item, which wasused as the basis for recognizing hedge ineffectiveness, stood at
a decrease of 15 thousand euros for non-current financial assets.
Currency risks

The hedging instruments DEKRA designated in hedges havethe following effects on the consolidated statement of financial
position as of December 31, 2020:
IN THOUSAND
EUR

Derivative
financial
instruments
designatedas hedging
instruments

D E K R A Financial Report 202087

Nominal
value

4,000

Carrying
amount59

Item in the
consolidated
statementof financial
position

Noncurrent
financialliabilities

Changes infair value inthe reporting period–15

Currency risks from the operating activities are immaterial,
since the local entities bill the services they render locallyalmost exclusively in their local currency. In connection withinvestments and intragroup transactions, liabilities occasionallyarise in foreign currencies, for which hedging is decided on acase-by-case basis.
A 10% change in the exchange rate of the euro against thesignificant currencies within the Group would affect the result
from the translation of short-term and long-term loans to affiliates by approximately 9.0 million euros not taking deferred tax
effects into consideration. Decisions on necessary currency
hedges are taken on a case-by-case basis. No material effects are
expected from the change in the exchange rate for the otherfinancial assets or liabilities. Group revenue includes revenue of
537.0 million euros (prior year: 571.9 million euros) that was notrecorded in a euro zone country.

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Notes

Notes

Other price risks

As part of the presentation of market risks, IFRS 7 also requires
disclosures on how hypothetical changes in risk variables would
affect prices of financial instruments. Possible risk variables
include in particular stock market prices or indices. As of
December 31, 2020, the Group had financial assets at fair value
through profit or loss totaling 12.2 million euros (prior year:
10.7 million euros), which are subject to fair value fluctuations.
These risks are mainly due to interest rate, credit and price risks.
The fair value changes averaged 2.6% in 2020 and 8.2% in 2019.
Securities and restricted assets

As in the prior year, there were no restrictions on title ordisposal for legally and beneficially owned property, plant andequipment, with the exception of the assets recognized underfinance leases. Other assets include 1.9 million euros (prioryear: 1.2 million euros) of premium reserve from employer’s
pension liability insurance policies pledged as collateral for pension obligations, but not to the entitled employees.
No financial assets were pledged as collateral for liabilities
or contingent liabilities.

1 1 REL AT ED PA R T IE S
Pursuant to IAS 24 “Related Party Disclosures”, transactions
with related parties must be disclosed. The Management Board
and Supervisory Board as well as owners qualify as related parties within the meaning of IAS 24.9.
Remuneration of the Management Board

The remuneration paid to Management Board members (shortterm benefits) comprises fixed annual compensation and a performance-related variable bonus.
Remuneration for the Management Board of DEKRA SE
including reimbursement of expenses amounted to 2,799 thousand euros (prior year: 2,809 thousand euros).
In addition, there were further expenses (among otherthings, for pensions of DEKRA SE) of 990 thousand euros (prioryear: 918 thousand euros) and obligations of 15,996 thousand
euros (prior year: 14,410 thousand euros) relating to this groupof persons.
This results in total remuneration of 3,789 thousand euros(prior year: 3,727 thousand euros).
Total remuneration paid to former members of the Management Board amounts to 399 thousand euros (prior year:
419 thousand euros). There are also pension obligations of
5,329 thousand euros (prior year: 4,950 thousand euros).
Remuneration of the Supervisory Board

The remuneration paid to the Supervisory Board for the reporting year came to 298 thousand euros (prior year: 295 thousand
euros), of which a total amount of 298 thousand euros (prioryear: 295 thousand euros) is reported as liabilities as of thereporting date.
In addition, there were further expenses (among otherthings, for pensions of DEKRA SE) of 710 thousand euros (prioryear: 486 thousand euros) and obligations of 751 thousand
euros (prior year: 1,194 thousand euros) relating to this groupof persons.

D E K R A Financial Report 2020

Transactions with DEKRA e.V., Stuttgart

There are liabilities of 42.5 million euros (prior year: 20.9 million
euros) to DEKRA e.V., Stuttgart, as of December 31, 2020, whichmainly stem from sales tax liabilities. There are also receivablesof 110.0 million euros (prior year: 111.6 million euros) that primarily result from the cash pooling less profit and loss transfer.
There are lease agreements in place between DEKRA e.V.,
Stuttgart, as lessor and various companies of the DEKRA Groupas tenants. Rent for business premises amounted to 20.5 million
euros in fiscal year 2020 (prior year: 19.7 million euros). Receivables from and liabilities to DEKRA e.V., Stuttgart, gave rise tointerest income of 1.5 million euros (prior year: 1.4 million
euros) and interest expenses of 0.5 million euros (prior year:
0.4 million euros). Tax allocations for income taxes amounted
to 29.4 million euros (prior year: 33.3 million euros). In addition, services totaling 2.4 million euros (prior year: 2.7 million
euros) were purchased from DEKRA e.V., Stuttgart.
Under a corporate lease agreement, activities are primarily performed in the field of German automotive testing andexpertise by an operating company of the DEKRA Group for
DEKRA e.V., Stuttgart. Business is generally conducted in thename of and for the account of DEKRA Automobil GmbH,
Stuttgart. All transactions and business processes are carriedout at DEKRA Automobil GmbH.
As remuneration for the activities, a flat-rate percentageof the profit generated before income taxes or of revenue isinvoiced. In fiscal year 2020, a total volume of 6.1 million euros(prior year: 5.8 million euros) was charged to the DEKRA
Group. DEKRA e.V., Stuttgart, recorded revenue of the sameamount from this source.
In addition, the DEKRA Group rendered services of
15.1 million euros (prior year: 10.1 million euros) for
DEKRA e.V., Stuttgart, in the fiscal year.
There is a profit and loss transfer agreement in place
between DEKRA SE and DEKRA e.V., Stuttgart, as well as a tax
group for income tax and sales tax purposes.

89

Transactions with non-consolidated entities,
associates, as well as investees
Dec. 31, 2020

Dec. 31, 2019

Services rendered

5.3

5.8

Services purchased

4.3

6.8

Finance income

0.6

0.6

Receivables and loans

25.1

32.6

Liabilities* )

1.1

1.9

Dec. 31, 2020

Dec. 31, 2019

Services rendered

0.3

0.2

Services purchased

8.8

10.3

Liabilities

1.0

0.9

Dec. 31, 2020

Dec. 31, 2019

Services rendered

0.4

0.4

Services purchased

0.9

0.9

Finance income

0.3

0.3

Receivables and loans

0.1

0.2

Liabilities*

0.1

0.1

SUB S ID I A R IE S T H AT A R E
N O T F U L LY C O N S O L I D AT E D
IN MILLION EURA S S O C I AT E S
IN MILLION EURINVESTEESIN MILLION EUR)* ) Liabilities are partially netted with the receivables in the statement of financial
position.

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Notes

Notes

1 2 	D IS C L O SURE S O N T HE M A N AG EMEN T B OA RD
A ND SUP ER V IS O RY B OA RD
The members of the Management Board during the fiscal year
2020 up to the date of the preparation of the statement of financial position were:• Stefan Kölbl
Chairman
Leinfelden-Echterdingen• Clemens Klinke, COO (until December 31, 2020)
Boffzen• Wolfgang Linsenmaier, CFO
Freiberg am Neckar• Ivo Rauh, CTO
Stuttgart• Stanislaw Zurkiewicz, COO (since January 1, 2021)
Stuttgart
The members of the Company’s Supervisory Board in thereporting year were:• Thomas Pleines
Chairman of the Supervisory Board
President of the Presidential Board of DEKRA e.V., Stuttgart
Former chairman of the Management Board
Allianz Versicherungs-AG• Monika Roth-Lehnen 1)
Deputy Chairwoman of the Supervisory Board
Chairwoman of the Works Council of DEKRA SE,
Chairwoman of the Central Works Council of
DEKRA Akademie GmbH, Stuttgart
Service Center Wuppertal of DEKRA Akademie GmbH,
Stuttgart• Ulrich Beiderwieden 1)
Formerly ver.di head office
Head of Sector
Sector 13 Special Services• Frank Beimborn 1)
Deputy Chairman of the Central Works Council of
DEKRA Automobil GmbH, Stuttgart,
publicly appointed and sworn expert at Dortmund branchof DEKRA Automobil GmbH, Stuttgart• Prof. Dr. Sabine Fließ
Douglas endowed Chair of Service Management,
University of Hagen, Hagen• Klaus-Jürgen Heitmann
Spokesman of the Board of Directors of HUK-Coburg
Versicherungsgruppe, Coburg• Jean-Luc Inderbitzin 1)
Deputy chairman of the Works Council of DEKRA SE,
Representative of the French trade union CFDTDEKRA Industrial S.A.S., Limoges, France• Dipl.-Ing. (FH) Wilfried Kettner 1)
Deputy Chairman of the Works Council of DEKRA SE,
Chairman of the Central Works Council of
DEKRA Automobil GmbH, Suhl branch of
DEKRA Automobil GmbH, Stuttgart• Dipl.-Wirtsch.-Ing. Arndt G. Kirchhoff
Managing partner of the Kirchhoff Group, Iserlohn• Dipl.-Ing. (FH) Stephan Kramer(since April 1, 2020)
Branch Manager Hamburg North and Regional
Spokesman Schleswig-Holstein and Hamburg
DEKRA Automobil GmbH, Stuttgart• Laurent Masquet 1)
Deputy Production Manager IT
DEKRA Automotive Solutions, Bordeaux, France• Dipl.-Ing. (FH) Wilhelm Oberfranz (until April 1, 2020)
Former Branch Manager of the Munich Branch(until March, 31 2019)
DEKRA Automobil GmbH, Stuttgart• Dipl.-Wirtsch.-Ing. Peter Tyroller
General Manager Robert Bosch GmbH, Stuttgart(until December 31, 2020)

1)

1 3 SUB SEQ UEN T E V EN T S
Effective from January 1, 2021, DEKRA reduced the number ofregions it has from eight to six. The regions East & South Asia
and Southern Africa & Oceania were combined into a new
APAC region. In addition, the regions North America and SouthAmerica were merged into an Americas region. Consequently,
DEKRA is today managed in six instead of eight regions. Thisis part of the rigorous implementation of Vision 2025.

1 4 O T HER D IS C L O SURE S

Audit of the financial statements

The Annual General Meeting on April 1, 2020 appointed Ernst &Young GmbH Wirtschaftsprüfungsgesellschaft as auditors of theseparate and consolidated financial statements for fiscal year 2020.
The auditors’ fees recognized in the fiscal year are shownin the following table.
IN THOUSAND EUR

2020

2019

Audit services

717

749

Tax advisory services

142

214

859

963

List of shareholdings and consolidated group

The Group’s entire shareholdings pursuant to Sec. 313 (2) HGB
as well as all of the entities included in the consolidated financial statements in addition to DEKRA SE are presented in thefollowing list.

Elected by employees.

D E K R A Financial Report 2020

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Notes

Notes

Share of capital

IN %

93

Share of capitalIN %DEKRA Service Maroc S.A., Casablanca, Morocco

80.00

100.00DEKRA Certification Tanúsító és Szolgáltató Kft., Budapest, Hungary

100.00100.00DEKRA Certification (Proprietary) Ltd., Centurion, South Africa

100.004)

100.00DEKRA CZ a.s., Prague 4, Czech Republic

100.00DEKRA Qualification GmbH, Stuttgart

4)

100.00DEKRA POLSKA Sp. z o.o., Warsaw, Poland

100.00DEKRA Certification GmbH, Stuttgart

4)

100.00DEKRA Services S.A., Alcobendas (Madrid), Spain

DEKRA Personal GmbH, Stuttgart

4)

100.00DEKRA Claims Services Luxembourg S.A., Luxembourg, Luxembourg

DEKRA Claims Services GmbH, Stuttgart

4)

100.00DEKRA Claims Services Netherlands B.V., Rotterdam, Netherlands

100.00DEKRA Beteiligungs- und Finanzierungs GmbH, Stuttgart

4)

100.00DEKRA Claims Services UK Ltd., Stokenchurch, Bucks (formerly: London), United Kingdom

100.00DEKRA Assurance Services GmbH, Stuttgart

4)

100.00DEKRA France S.A.S., Le Plessis Robinson (formerly: Bagneux), France

100.00DEKRA Media GmbH, Mönchengladbach

1)100.00DEKRA Belgium N.V., Zaventem, Belgium

100.00DEKRA Personaldienste GmbH, Stuttgart

4)

100.00DEKRA Certification S.L., Barcelona, Spain

DEKRA Event & Logistic Services GmbH, Stuttgart

4)

100.00DEKRA Certification Sp. z o.o., Wrocław, Poland

100.00100.00DEKRA Services, Inc., Atlanta, GA (formerly: Marietta), United States of America

100.00100.00DEKRA Portugal S.A., Lisbon, Portugal

100.00100.00DEKRA North America, Inc., Atlanta, GA, United States of America

100.00100.00DEKRA Austria Automotive GmbH, Leopoldsdorf (formerly: Vienna), Austria

100.00100.00DEKRA zaposljavanje i zastupanje d.o.o., Zagreb, Republic of Croatia

100.00DEKRA Hellas EPE, Athens, Greece

1)100.00100.00DEKRA Claims Services Austria GmbH, Vienna, Austria

1)100.00100.00100.00Affiliates in Germany:
DEKRA Automobil GmbH, Stuttgart

4)

DEKRA Akademie GmbH, Stuttgart

4)

DEKRA Arbeit GmbH, Stuttgart

PRO-LOG Beteiligungs GmbH, Stuttgart
PRO-LOG Ruhr GmbH, Bochum
PRO-LOG Personal GmbH, Stuttgart
DEKRA Immobilien GmbH, Stuttgart

4)

PRO-LOG IV GmbH, Stuttgart
UPDOWN Ingenieurteam für Fördertechnik GmbH, Hamburg
GKK Gutachten GmbH, Düsseldorf

4)100.001)

1)

100.00100.00100.00100.00DEKRA Claims Services Hungary Service Kft., Budapest, Hungary

1)

DEKRA AUTOMOTIVE SOLUTIONS Germany GmbH, Frankfurt am Main

4)

100.00DEKRA Certification S.R.L., Cluj-Napoca, Romania

1)

DEKRA INCOS GmbH, Ingolstadt

4)

100.00Dekra Claims & Expert Services (Suisse) SA, Thônex, Switzerland

100.00DEKRA Cargo & Security Services GmbH, Stuttgart

1)

100.00DEKRA Italia S.r.l., Cinisello Balsamo, Milan (formerly: Arese), Italy

100.00100.00DEKRA Industrial Holding S.A.S., Limoges, France

100.00100.00DEKRA Arbeit Magyaroszag Szolgáltató Kft., Budapest, Hungary

DEKRA Inspection Services GmbH, Stuttgart

DEKRA Visatec GmbH, Sulzberg/See
DEKRA Testing and Certification GmbH, Stuttgart

4)

Affiliates in other countries:

100.00DEKRA Claims Services Trust reg., Vaduz, Principality of Liechtenstein1)

100.00DEKRA Zaposljavanje d.o.o., Belgrade, Republic of Serbia

1)100.00DEKRA Automotive Solutions France S.A.S.U., Bordeaux, France

100.00DEKRA za privremeno zaposljavanje d.o.o., Zagreb, Republic of Croatia

DEKRA Foncier S.N.C., Le Plessis Robinson (formerly: Trappes), France

100.00DEKRA zaposljavanje d.o.o., Sarajevo, Bosnia and Herzegovina

Auto Bilan France S.A.S.U, Le Plessis Robinson (formerly: Trappes), France

100.00DEKRA Certification S.A.S, Le Plessis Robinson (formerly: Bagneux), France

DEKRA Automotive S.A.S., Le Plessis Robinson (formerly: Trappes), France

100.00DEKRA Expert OOO, Kiev, Ukraine

DEKRA Automotive Maroc S.A., Casablanca, Morocco

80.00

DEKRA kvalifikácia a poradenstvo s.r.o., Bratislava, Slovak Republic

100.00DEKRA TEST CENTER S.A., Montredon-des-Corbières, France

100.00DEKRA Automotive AB, Solna (formerly: Eskilstuna), Sweden

100.00DEKRA Expertise S.A.S., Cormelles-le-Royal, France

100.00DEKRA (Shanghai) Co., Ltd., Shanghai, China

100.00D E K R A Financial Report 2020

100.001)

100.00
1)

D E K R A Financial Report 2020

100.0080.00

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C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

Notes

Notes

Share of capital

IN %

95

Share of capitalIN %DEKRA Automotive EOOD, Sofia, Republic of Bulgaria

1)

100.00DEKRA ITV España S.L., Alcobendas (Madrid), Spain

Consorzio DEKRA Revisioni S.r.l. i.L., Milan, Italy

1)

99.00

DEKRA Canada Inc., Moncton, New Brunswick, Canada

DEKRA Expertises Ltda., Atibaia, SP, Brazil

1)

100.00Behavioral Science Technology, Inc., Oxnard, CA, United States of America

100.00DEKRA kvalifikace a poradenství s.r.o., Prague 4, Czech Republic

1)

100.00Behavioral Science Technology International (BSTI) Inc., Oxnard, CA, United States of America

100.00DEKRA Servicios Recursos Humanos S.L., Barcelona, Spain

100.00DEKRA Akademie A/S, Brøndby, Denmark100.00DEKRA Empleo ETT S.L., Barcelona, Spain

100.00

BST Consultants Pte. Ltd., Singapore, Singapore

100.00DEKRA Automotiv d.o.o., Zagreb, Republic of Croatia

100.00DEKRA Services ApS, Brøndby, Denmark100.0099.99

DEKRA Sydjylland A/S, Vejen, Denmark100.00DEKRA Russ O.O.O., Moscow, Russian Federation

1)

DEKRA Akademie Kft., Budapest, Hungary

100.001)

100.00100.00DEKRA Hovedstaden A/S, Brøndby, Denmark100.00DEKRA Hasar Servisi Ltd. Sti., Istanbul, Turkey

1)

100.00DEKRA Job ApS., Brøndby, Denmark100.00DEKRA Claims Services Maroc S.A.R.L., Casablanca, Morocco1)

100.00DEKRA Nordsjælland ApS, Hillerød, Denmark100.00DEKRA Claims and Expertise B.V., Alkmaar, Netherlands

100.00DEKRA Midtjylland ApS, Skjern, Denmark100.00DEKRA Industrial (Guangzhou) Co., Ltd, Guangzhou, China

100.00DEKRA Uddannelser A/S, Brabrand, Denmark100.00DEKRA Finland Oy, Vantaa, Finland

100.00DEKRA Equipment & Services A/S, Brøndby, Denmark

DEKRA Industrial Oy, Vantaa, Finland

100.00DEKRA Praca Sp. z o.o., Kraków, Poland

DEKRA Automotive Pty. Ltd., Klerksoord, Rosslyn, South Africa

100.00DEKRA Caribbean B.V., Willemstad, Curaçao

DEKRA Zaposljavanje d.o.o., Podgorica, Montenegro

100.00DEKRA (Shanghai) Investment Co., Ltd., Shanghai, China

DEKRA Slovensko s.r.o., Bratislava, Slovak Republic

100.00DEKRA Netherlands Holding B.V., Arnhem, Netherlands

100.0070.00

DEKRA People B.V., Alkmaar, Netherlands

Checkauto Consultatoria Técnica e Informções Veiculares Ltda., Atibaia, SP, Brazil

100.00DEKRA Privremeno Zaposljavanje Podgorica d.o.o., Podgorica, Montenegro

DEKRA Vistorias e Serviços Ltda., Atibaia, SP, Brazil

100.00DEKRA South Africa Pty. Ltd., Klerksoord, Rosslyn, South Africa
Hangzhou DEKRA Certification Co., Ltd., Hangzhou, China
DEKRA Industrial AB Sweden, Gothenburg, Sweden

DEKRA Claims Services, Kiev, Ukraine

1)

DEKRA Sweden AB, Gothenburg, Sweden

100.001)

100.00100.00100.00Road Safety Consulting N.V., Brussels, Belgium

1)

50.10

DEKRA Outsourcing d.o.o., Belgrade, Republic of Serbia

1)100.00100.00100.00DEKRA usluge d.o.o., Zagreb, Republic of Croatia

1)

100.00100.00DEKRA Revisión Técnica SpA, Santiago de Chile, Chile1)

100.00100.00DEKRA Services (PTY) Ltd., Vereeniging, South Africa

100.00100.00DEKRA Industrial RSA (Pty) Ltd., Gauteng, South Africa

100.00100.00100.00DEKRA Quality Management AB, Solna (formerly: Frösön), Sweden

DEKRA Industrial AS, Oslo (formerly: Soli), Norway

1)

100.00DEKRA Inspeções Portugal, S.A., Lisbon, Portugal

DEKRA Egypt for Services and Consulting, Cairo, Egypt

1)

51.00

DEKRA Vrabotuvanje dooel, Skopje, Republic of North Macedonia

DEKRA Motores – Vistoria Veicular Ltda., Atibaia, SP, Brazil

1)

100.00DEKRA Fyn ApS, Odense, Denmark

DEKRA UK Management Ltd. (formerly: DEKRA UK Ltd.), Southampton, Hampshire, United Kingdom

100.00European Road Stars Academy SPRL, Brussels, Belgium

DEKRA UK Ltd. (formerly: Chilworth Technology Ltd.), Southampton, Hampshire, United Kingdom

100.00DEKRA New Zealand Ltd., Wellington, New Zealand

60.00

DEKRA (India) Pvt. Ltd., New Delhi, India

100.00

Vehicle Testing New Zealand Ltd, Wellington, New Zealand

60.00

Chilworth Technology, Inc., Princeton, NJ, United States of America

100.00D.AKADEMIE S.r.l., Verona, Italy

100.00Chilworth France S.A.S., Jonage, France

100.00DEKRA Automotive Ltd., Stokenchurch, Bucks, United Kingdom

100.00

Safety Consulting Engineers, Inc., Schaumburg, IL, United States of America

100.00DEKRA España S.L., Málaga (formerly: Madrid), Spain

100.00D E K R A Financial Report 2020

100.001)

100.00100.00D E K R A Financial Report 2020

1)

50.10

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C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

Notes

Notes

Share of capitalIN %DEKRA Akademie EPE, Thessaloniki, Greece

97

Share of capitalIN %100.00DEKRA Arbeit AG St. Gallen, St. Gallen, Switzerland

100.00DEKRA Automotive La Réunion S.A.S., Sainte-Clotilde, France

100.00DEKRA Arbeit AG Basel, Basel, Switzerland

100.00DEKRA Rail B.V., Utrecht, Netherlands

100.00DEKRA Arbeit AG Buchs, Buchs, Switzerland

95.00
90.00

1)

DEKRA agencija d.o.o., Sarajevo, Bosnia and Herzegovina

1)

100.00DEKRA Arbeit AG Chur, Chur, Switzerland

Arbeit De Agency for Temporary Employment, Skopje, Republic of North Macedonia

1)

100.00DEKRA Arbeit AG Sargans, Sargans, Switzerland

DEKRA zaposlitev d.o.o., Ljubljana, Republic of Slovenia

1)

100.00100.00UAB DEKRA Industrial, Visaginas, Lithuania

96.00

DEKRA Arbeit Bulgaria EOOD, Sofia, Republic of Bulgaria

1)

100.00DEKRA Services Spolka z.o.o, Kraków, Poland

1)

100.00

COMENIUS Oktató és Kiadó Kft., Pécs, Hungary

1)

100.00DEKRA Prélèvements & Analyses SAS (formerly: PROTEC Services), Limoges, France

Comenius Szakközépiskola és Szakiskola, Pécs, Hungary

1)

100.00DEKRA Arbeit Austria GmbH, Vienna, Austria

1)

DEKRA Testing and Certification Co., Ltd., New Taipei City, Taiwan

100.00Beijing DEKRA Vehicle Inspection Co., Ltd, Beijing, China

1)

90.00

DEKRA Testing & Certification (Suzhou) Co., Ltd., Suzhou, China

100.00PRO-LOG SR DOO, Belgrade, Republic of Serbia

1)100.00100.00Gain Solutions Ltd., Stokenchurch, Bucks, United Kingdom

100.00100.00Industrial Safety Group B.V., Capelle aan den IJssel, Netherlands

100.00DEKRA AQS Solutions, Inc., Minneapolis, MN, United States of America

100.00DEKRA Industrial Safety B.V. (formerly: Arbo Support B.V.), Capelle aan den IJssel, Netherlands

DEKRA iST Reliability Services Inc., Hsinchu City, Taiwan

51.00

DEKRA Arbeit Anstalt, Eschen, Principality of Liechtenstein

1)

95.00

DEKRA iST Reliability Services Limited, Hong Kong, China (Hong Kong)

51.00

DEKRA Personnel France SAS, Paris (formerly: Bagneux), France

1)

100.00DEKRA iST Reliability Services Limited, Kunshan, China

51.00

DEKRA Bilsyn ApS, Silkeborg, Denmark

DEKRA Organisational Reliability Ltd., Aberdeen, United Kingdom

100.00DEKRA Testing and Certification S.A., Málaga, Spain

100.00DEKRA Testing and Certification Ltda., Santiago de Chile, Chile

QTK Asia Electronics Ltd., Road Town (Tortola), British Virgin Islands
DEKRA Middle East FZE, Dubai, United Arab Emirates

1)

92.50
100.00100.00100.00DEKRA TW s.r.o., Bratislava, Slovak Republic

1)

100.00DEKRA Arbeit L.L.C., Priština, Republic of Kosovo

1)

100.0099.90

DEKRA Arbeit SHPK, Tirana, Albania

1)100.00DEKRA Akademie Sh.p.k., Tirana, Albania

100.00Shenzhen Detong Vehicle Inspection Co. Ltd., Shenzhen, China

1)

80.00

DEKRA Inspection Oy, Vantaa, Finland

100.00DEKRA Audit CZ s.r.o., Prague 4 – Chodov, Czech Republic

DEKRA Nordjylland A/S, Sæby, Denmark100.00DEKRA Southern Africa Oceania Limited, Wellington, New Zealand

DEKRA Services France SAS, Le Plessis Robinson (formerly: Bagneux), France

100.00DEKRA Industrial Inspection Lda., City of Maputo, Republic of Mozambique1)

100.00DEKRA Automotive S.à r.l., Munsbach, Luxembourg

100.00100.00100.00100.00100.00

Alapítványi Iskolák Dél-Dunántúli Regionális Szakképzés Szervezési Társulása Nkft., Pécs, Hungary

1)

DEKRA Development s.r.o., Bratislava, Slovak Republic

1)

100.00DEKRAMERICAS, S. de R.L. de C.V., Alcaldía Cuauhtémoc, Mexico City, Mexico

1)

PRO-LOG CG d.o.o., Podgorica, Montenegro

1)

100.00MOVON Test Lab Co. Ltd., Gyeonggi-do, Republic of Korea (South Korea)

DEKRA Automotive d.o.o., Zvezdara, Belgrade, Republic of Serbia

100.00France Etudes et Solutions SASU, Le Plessis Robinson, France

DEKRA Sjælland A/S, Næstved, Denmark100.00DEKRA Industrial SAS, Limoges, France

100.00100.00VEIKI-VNL Villamos Nagylaboratóriumok Korlátolt Felelősségü Társaság, Budapest, Hungary

100.001)

100.00100.00DEKRA Solutions (Pty) Ltd., Centurion, South Africa

TATRA TRUCK s.r.o., Krásny Brod, Slovak Republic

1)

100.00DEKRA Industrial S.A.R.L., Algiers, Algeria

99.50

Master Test Chile SpA., Santiago de Chile, Chile1)

100.00DEKRA Industrial SA., Barcelona, Spain

100.00100.00DEKRA Inspection S.A., Casablanca, Morocco

100.00100.00DEKRA Certification B.V., Arnhem, Netherlands

100.00100.00DEKRA Solutions B.V., Arnhem, Netherlands

100.00Core Visual Inspection Services, Inc., Austin, TX, United States of America
D. Invest S.R.L., Cinisello Balsamo (MI), Italy

1)

DEKRA Arbeit (Schweiz) Holding AG, Sargans, Switzerland

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Notes

Notes

Share of capitalIN %DEKRA Testing and Certification S.r.l., Cinisello Balsamo, Milano (formerly: Osnago), Italy

100.00DEKRA Certification Japan K.K., Tokyo, Japan

100.00DEKRA Testing Services (Zhejiang) Ltd., Wenzhou, Zhejiang, China

51.00

DEKRA Testing and Certification (Shanghai) Ltd., Shanghai, China
DEKRA Certification Ltd., Stokenchurch, Bucks (formerly: Pershore Worcestershire), United Kingdom

Stuttgart, March 29, 2021
DEKRA SEThe Management Board

100.001)

100.00DEKRA Certification Ltd., Tel Aviv, Israel

100.00DEKRA Certification Hong Kong Limited, Fanling, China (Hong Kong)

100.00DEKRA Certification, Inc., North Wales, PA, United States of America

100.00  Kölbl, Chairman

Associates in Germany:Euro Transport Media Verlags- und Veranstaltungsgesellschaft mbH, Stuttgart

40.00

FSD Fahrzeugsystemdaten GmbH, Dresden

33.71  Linsenmaier

Associates in other countries:
TRANSDEKRA AG, Moscow, Russian Federation

2)

50.00

DEKRA – EXPERT Müszaki Szakértöi Kft., Budapest, Hungary

2)

50.00

DEKRA Claims Services France S.A., Levallois-Perret, France

2)

50.00

NDT Training Center AB, Västerås, Sweden

2)

33.00

DEKRA Advanced Mobility Testing (Huzhou) Co. Ltd., Huzhou City, China  Rauh51.00  Zurkiewicz

Equity investments:
ARGE “Technische Prüfstelle für den Kraftfahrzeugverkehr 21” GbR, Dresden

3) 5)

25.00

Magility GmbH, Kirchheim unter Teck

3) 5)

24.90

DYNAE S.A., Villefontaine, France

3) 5)

19.93

Société Coopérative de Promotion S.A., Trappes, France< 5.00Crédit Agricole S.A., Paris, France< 1.00Crédit Mutuel, Paris, France< 1.00

ITT Technology Transfer s.r.l., Ferrara, Italy

1.00

Not included in the consolidated financial statements by way of full consolidation.
Not accounted for using the equity method due to insignificance for assets and liabilities, financial position and financial performance.
3)
T he disclosures pursuant to Sec. 313 (2) No. 4 HGB have not been made since they are insignificant for the presentation of a true and fair viewof the Group‘s assets and liabilities, financial position and financial performance.
4)
Utilization of the exemption pursuant to Sec. 264 (3) HGB.
5)
Significant influence is not exercised.
1)

2)

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Independent auditor’s report

Independent auditor’s report101

DEKRA SEINDEPENDENT AUDITOR’S REPORTTO DEKRA SE

Opinions

We have audited the consolidated financial statements of
DEKRA SE, Stuttgart, and its subsidiaries (the Group), which
comprise the consolidated statement of comprehensive income
for the fiscal year from January 1 to December 31, 2020, the consolidated statement of financial position as of December 31, 2020,
the consolidated statement of changes in equity and the consolidated statement of cash flows for the fiscal year from January 1 to
December 31, 2020, and the notes to the consolidated financial
statements, including a summary of significant accounting policies. In addition, we have audited the group management reportof DEKRA SE for the fiscal year from January 1 to December 31,
2020. In accordance with the German legal requirements, we havenot audited the content of the statement on corporate governancepursuant to Sec. 289f (4) HGB [“Handelsgesetzbuch”: German
Commercial Code] included in the “Declaration of compliance”
section of the group management report (disclosures on the quota
for women on executive boards). In addition, we have not audited
the content of information not typical of management reports
contained in the sections “Integrity and sustainability” and“Environmental protection and sustainability” of the group management report. Information not typical of management reports
in the group management report relates to information that is not
required by Secs. 315, 315a or Secs. 315b to 315d HGB.
In our opinion, on the basis of the knowledge obtained in
the audit,– the accompanying consolidated financial statements comply, inall material respects, with the IFRSs as adopted by the EU, andthe additional requirements of German commercial law pursuant to Sec. 315e (1) HGB and, in compliance with these requirements, give a true and fair view of the assets, liabilities, andfinancial position of the Group as of December 31, 2020, and ofits financial performance for the fiscal year from January 1, toDecember 31, 2020, and– the accompanying group management report as a whole provides
an appropriate view of the Group’s position. In all material
respects, this group management report is consistent with theconsolidated financial statements, complies with German legal
requirements and appropriately presents the opportunities andrisks of future development. Our opinion on the group management report does not cover the above-mentioned statement on

corporate governance and the sections of the group management
report “Integrity and sustainability” and “Environmental protection and sustainability” also mentioned above.
Pursuant to Sec. 322 (3) Sentence 1 HGB, we declare that our audit
has not led to any reservations relating to the legal compliance ofthe consolidated financial statements and of the group management report.
Basis for the opinions

We conducted our audit of the consolidated financial statements
and of the group management report in accordance with Sec.
317 HGB and in compliance with German Generally AcceptedStandards for Financial Statement Audits promulgated by theInstitut der Wirtschaftsprüfer [Institute of Public Auditors inGermany] (IDW). Our responsibilities under those requirements and principles are further described in the “Auditor’s
responsibilities for the audit of the consolidated financial statements and of the group management report” section of ourauditor’s report. We are independent of the group entities inaccordance with the requirements of German commercial andprofessional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinions on
the consolidated financial statements and on the group management report.
Other information

The Supervisory Board is responsible for the Report of theSupervisory Board. In all other respects, the executive directors
are responsible for the other information. The other information
comprises the above-mentioned statement on corporate governance pursuant to Sec. 289 (4) HGB (disclosures on the quota for
women on executive boards) and the above-mentioned information not typical of management reports in the sections“Integrity and sustainability” and “Environmental protection
and sustainability” of the group management report. The otherinformation also comprises additional components designatedfor the annual report, of which we received a version prior toissuing this auditor’s report, in particular the section “At aglance”, the section “Foreword from the Chairman of the Management Board” and the section “Report from the Chairman of
the Supervisory Board”, but not the consolidated financial

D E K R A Financial Report 2020statements, not the group management report disclosures whose
content is audited and not our auditor’s report thereon.
Our opinions on the consolidated financial statements andon the group management report do not cover the other information, and consequently we do not express an opinion or any
other form of assurance conclusion thereon.
In connection with our audit, our responsibility is to read theother information and, in so doing, to consider whether theother information– is materially inconsistent with the consolidated financial statements, with the group management report or our knowledge
obtained in the audit, or– otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there isa material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of the executive directors andthe Supervisory Board for the consolidated financial
statements and the group management report

The executive directors are responsible for the preparation of
the consolidated financial statements that comply, in all material respects, with IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to Sec.
315e (1) HGB, and that the consolidated financial statements, incompliance with these requirements, give a true and fair viewof the assets, liabilities, financial position and financial performance of the Group. In addition, the executive directors are
responsible for such internal control as they have determined
necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether
due to fraud or error.
In preparing the consolidated financial statements, theexecutive directors are responsible for assessing the Group’s
ability to continue as a going concern. They also have theresponsibility for disclosing, as applicable, matters related togoing concern. In addition, they are responsible for financial
reporting based on the going concern basis of accounting unlessthere is an intention to liquidate the Group or to cease operations, or there is no realistic alternative but to do so.
Furthermore, the executive directors are responsible forthe preparation of the group management report that, as awhole, provides an appropriate view of the Group’s position andis, in all material respects, consistent with the consolidated
financial statements, complies with German legal requirements,
and appropriately presents the opportunities and risks of future
development. In addition, the executive directors are responsible
for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a group management report that is in accordance with the applicable German
legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the group management report.
The Supervisory Board is responsible for overseeing theGroup’s financial reporting process for the preparation of the consolidated financial statements and of the group management report.
Auditor’s responsibilities for the auditof the consolidated financial statements
and of the group management report

Our objectives are to obtain reasonable assurance about whether
the consolidated financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, andwhether the group management report as a whole provides anappropriate view of the Group’s position and, in all material
respects, is consistent with the consolidated financial statements
and the knowledge obtained in the audit, complies with the German legal requirements and appropriately presents the opportunities and risks of future development, as well as to issue anauditor’s report that includes our opinions on the consolidated
financial statements and on the group management report.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance with Sec.
317 HGB and in compliance with German Generally AcceptedStandards for Financial Statement Audits promulgated by theInstitut der Wirtschaftsprüfer (IDW) will always detect a material misstatement. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements and this group management report.

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Independent auditor’s report

Independent auditor’s report

We exercise professional judgment and maintain professional
skepticism throughout the audit. We also
– Identify and assess the risks of material misstatement of theconsolidated financial statements and of the group management report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide abasis for our opinions. The risk of not detecting a material
misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override ofinternal control.
– Obtain an understanding of internal control relevant to theaudit of the consolidated financial statements and of arrangements and measures (systems) relevant to the audit of thegroup management report in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of thesesystems.
– Evaluate the appropriateness of accounting policies used by
the executive directors and the reasonableness of estimates
made by the executive directors and related disclosures.
– Conclude on the appropriateness of the executive directors’
use of the going concern basis of accounting and, based on theaudit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt
on the Group’s ability to continue as a going concern. If weconclude that a material uncertainty exists, we are required to
draw attention in the auditor’s report to the related disclosuresin the consolidated financial statements and in the group management report or, if such disclosures are inadequate, to modify our respective opinions. Our conclusions are based on theaudit evidence obtained up to the date of our auditor’s report.

However, future events or conditions may cause the Group tocease to be able to continue as a going concern.
– Evaluate the overall presentation, structure and content of theconsolidated financial statements, including the disclosures,and whether the consolidated financial statements present theunderlying transactions and events in a manner that the consolidated financial statements give a true and fair view of theassets, liabilities, financial position and financial performanceof the Group in compliance with IFRSs as adopted by the EU
and the additional requirements of German commercial law
pursuant to Sec. 315e (1) HGB;
– Obtain sufficient appropriate audit evidence regarding thefinancial information of the entities or business activities
within the Group to express opinions on the consolidated
financial statements and on the group management report.
We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible forour opinions.
– Evaluate the consistency of the group management reportwith the consolidated financial statements, its conformity
with [German] law, and the view of the Group’s position it
provides.
– Perform audit procedures on the prospective information presented by the executive directors in the group management
report. On the basis of sufficient appropriate audit evidence
we evaluate, in particular, the significant assumptions usedby the executive directors as a basis for the prospective information, and evaluate the proper derivation of the prospective
information from these assumptions. We do not express aseparate opinion on the prospective information and on theassumptions used as a basis. There is a substantial unavoidable
risk that future events will differ materially from the prospective information.

D E K R A Financial Report 2020

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
Stuttgart, March 30, 2021
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft

Marbler
Wirtschaftsprüfer[German Public Auditor]

Werling
Wirtschaftsprüfer[German Public Auditor]

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Report from the Chairman of the Supervisory Board

Report from the Chairman of the Supervisory Board

REPORT FROM THE
CHAIRMAN OF THE SUPERVISORY BOARD

THOMAS PLEINES
President of the Presidential Boardof DEKRA e.V. and Chairman of theSupervisory Board of DEKRA SE

As a result of the COVID-19 pandemic, 2020 was a highly
challenging fiscal year for DEKRA and the Supervisory
Board. There was a continuous need to discuss significant
market changes and respond accordingly.
One example of this was the necessary closure oflocations – for instance, due to the ban on face-to-faceteaching affecting our Training business.

The Supervisory Board’s own examination of the annual accounts, management report,
consolidated financial statement, and Group management report did not result in any
objections. The annual accounts drawn up by the Management Board are approvedby the Supervisory Board and thereby adopted. The Supervisory Board thanks theManagement Board and all DEKRA’s employees for their successful endeavors in achallenging reporting year.

In this context, the Supervisory Board fully performed its
role of monitoring and guiding the Management Boardof DEKRA SE, even against the backdrop of the COVID‑19
pandemic. We regularly received both written and oral
reports on key business activities. This made it possible tocomprehensively discuss changes in the business during
two Supervisory Board meetings and to contribute new ideas,such as converting inspection stations into COVID‑19
testing centers and introducing branded respirators.

Stuttgart, April 2021
The Supervisory Board

THOMAS PLEINES,

Chairman

However, DEKRA was not completely immune to the impacts of the wider economic
situation. For example, reduced traffic volumes led to a decrease in road accidents
and, in turn, to a decline in the expertise business. And in some cases, local regulations such as curfews limited our ability to provide services – another factor thatnegatively affected our revenue. This inevitably caused a decline in key businessperformance indicators.
Despite the difficult conditions, the Management Board worked together with theSupervisory Board to ensure that the Company remained on a stable footing inthe 2020 reporting year. Steps were taken at short notice to safeguard liquidity
and make cost adjustments.
The Supervisory Board appointed the auditing firm Ernst & Young GmbH, Stuttgart,
as the external auditor and commissioned it to examine DEKRA SE’s annual accounts,
management report, consolidated financial statement, and Group management
report, together with the accounting for the 2020 fiscal year. The Supervisory Board
acknowledged and approved the unqualified audit opinion of the external auditor.

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DEKRA e.V.
Communications and Brand Management
Handwerkstrasse 1570565 Stuttgart, Germany
Phone +49.711.7861–2876
Fax +49.711.7861–2912

C O N C EP T A ND D E SI G N
Strichpunkt GmbH
Stuttgart/Berlin

PHOTOGRAPHY
DEKRA; Sebastian Vollmert, Hamburg