Tesa SE Facts – Figures – Background Information
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tesa SE Facts – Figures – Background Information • One of the world’s leading manufacturers of self-adhesive product and system solutions • More than 125 years of experience in coating technology and development of adhesives • Headquarters with research and technology center at a single site • 1,342.8 million euros in sales in 2018 (previous year: 1,257.8 million euros) • Strategic alignment toward establishing and developing high-tech fields of application, environmentally friendly production technologies, and business structures in growth regions With name recognition of 98 percent and a degree of popularity of 76 percent (GfK, 2012), tesa is among the strongest brands in its home market of Germany. The brand’s name has even made it into the Duden, the authoritative dictionary of the German language. But tesa is more than just the celebrated classic adhesive tape: Now a European stock corporation and wholly owned affiliate of Beiersdorf AG (whose other brands include NIVEA, Eucerin, and la prairie), the company of- fers more than 7,000 product and system solutions aimed at ensuring, among other things, that state-of-the-art electronics can become ever more multifunc- tional, with increasingly higher performance. tesa speeds up flying splices in newspaper printing, partners with the automotive industry on a range of different applications, optimizes energy efficiency in private households and prevents product piracy with clever security concepts. In addition, the international group of companies develops and produces medicated adhesive patch products for the pharmaceuticals industry and extremely high-performance adhesive tapes for the construction sector. HISTORY There’s a story behind the name The name tesa® dates back to secretary Elsa Tesmer, who worked at Beiersdorf from April 1903 to the end of October 1908. During that period, the secretarial office was assigned to create names. Her suggestion, a combination of the first syllable of her last name (Te-) and the last syllable of her first name (-sa), was indeed used, but the first products to carry the tesa name were unsuccessful. That changed in 1936. The first technical adhesive tape tesa’s success story begins with the unsuccessful development of an adhesive bandage. Paul C. Beiersdorf, a pharmacist, was at work on the bandage when Dr. Oscar Troplowitz took over the lab from the company’s founder, in 1890. The bandage adhered excellently, but was irritating to skin. Troplowitz made a virtue of necessity and, in 1896, launched the world’s first technical adhesive tape – to patch bicycle inner tubes. The product was marketed under the name Cito-Sport- heftpflaster. It underwent further development over the years, and among other things, went on to be used as the basis for transparent “Beiersdorfs-Kautschuk- Klebefilm” rubber adhesive tape, launched in 1935 – the precursor to tesafilm®. tesa conquers the office The triumphant advance of tesafilm® transparent adhesive tape is closely linked to the history of industrial businessman Hugo Kirchberg (1908–1999), who was tasked in 1934 with developing and systematically expanding the company’s ad- hesive tape business. Kirchberg believed in the “unlimited possibilities of self- adhesive technology” – not just at home and at work, but also in industrial fields. When the time came to choose a brand name, Kirchberg selected Elsa Tesmer’s suggestion, tesa®, which the company had already trademarked – first using the name in 1936, as tesa®-Klebefilm, and later as tesafilm®. Kirchberg was quick to note that the transparent adhesive tape was extremely difficult to sell unless a combined dispensing and cutting device was offered along with it. With that in mind, the industrious businessman invented the tesa dispenser in his spare time – a device that is still a fixture on practically every desktop to this day, albeit with a different design. Umbrella brand and product family Since 1941, the name tesa® has been the umbrella brand used for all self-adhesive products manufactured by the group of companies. The name covers a wide range of different system solutions for industrial and professional applications, as well as about 300 products for consumers. tesa AG becomes tesa SE When tesa AG was founded in 2001, tesa, originally a division of the Beiersdorf group of companies, became independent – as a wholly owned affiliate, but with autonomous structures. In March 2009, the company made the switch to a new, international corporate form: The company is now doing business as a European stock corporation – tesa SE (Societas Europaea). PRESENT AND FUTURE tesa around the world As of September 2015, the tesa SE group of companies is headquartered in Nor- derstedt, near Hamburg, where the company built a new complex to accommo- date more than 1,100 employees. At 160 million euros, the move marks the largest investment in the history of tesa, combining the company’s headquarters and a research and technology center at a single site. Streamlined communication channels and close physical proximity will now allow the technology group to respond even faster to customers’ requirements – a big plus in the international competition to develop innovative products. 64 affiliates and 14 production sites, along with an efficient logistics structure and high-performance service network, ensure that the product and system solutions from tesa maintain their global pres- ence, and that the company can reach customers in over 100 countries. Today, tesa is the world market leader in many fields of application. The company contin- uously strives to expand this success further – including by focusing on the growth markets in Eastern Europe and Asia. tesa plans to drive the business in the Greater China region with investments totaling 35 million euros over the next few years. As an initial milestone, a state- of-the-art new cleanroom unit has been constructed at the Suzhou location. It will be used to manufacture precision tapes for the electronics industry. Production is scheduled to start in the first quarter of 2020. In all, the tesa grounds in the Su- zhou industrial park will be home to five new buildings with total area of 15,000 square meters. The tesa Digital Development Office, founded in mid-2017, will pool together and prioritize company-wide digital activities. In late October 2018, for example, tesa opened a B2B shop for industrial adhesive tapes in China, on the Alibaba plat- form “1688.com.” As the second e-commerce pilot project, a flagship store has also been created on the “TMall Global” online platform, which also belongs to Alibaba (more than 580 million registered users). Consumer products are also sold directly to end customers there. Business development, 2018 The tesa Group closed the 2018 fiscal year with great success. Sales revenue rose by 85.0 million euros, up from 1,257.8 million euros in 2017 to stand at 1,342.8 million euros. In 2018, tesa’s operating result (EBIT) was up 2.7 million euros, to 210.2 million euros (2017: 207.5 million euros). Compared with the previ- ous year, the return on sales led to a lower EBIT margin of 15.7 percent (2017: 16.5 percent). Economic development in the divisions: Direct Industries account- ed for about 60 percent of total sales in 2018 (2017: 58 percent). The Trade Mar- kets division, which encompasses not only the business in products for consum- ers and craftsmen, but also those industrial markets that are reached via the technical trade, accounted for 40 percent of total sales during the year under review (2017: 42 percent). Breakdown by region: In 2018, tesa earned 54.4 per- cent of its sales in Europe (2017: 56.2 percent), 29.4 percent in Africa/Asia/Aus- tralia (2017: 28.6 percent) and 16.1 percent in the Americas (2017: 15.2 percent). Growth through acquisitions With four corporate acquisitions in four countries since March 2017, tesa is pursu- ing its strategy of increasingly growing by acquiring expertise and technology from outside. The companies acquired are nie wieder bohren ag (Germany), the Twinlock division of Polymount International BV (Netherlands), FormFormForm Ltd. (United Kingdom), and Functional Coatings, Inc. (U.S.A.). Solutions for many industrial sectors System solutions from tesa optimize production processes, provide enhanced speed, dependability, and efficiency in numerous industrial sectors, and can be used to upgrade finished products. The company is a capable partner to a range of industries, including electrical engineering and electronics, automotive, print and paper, pharmaceuticals, building supply, solar and wind energy, retail, and the technical trade. In addition, tesa supports many companies, such as produc- ers of name-brand items in the fashion industry and the automotive replacement parts market, with extensive safety and security applications and concepts that provide protection against counterfeiting (including the PrioSpot®). Solutions for consumers In many countries all around the world, tesa® is part of consumers’ day-to-day lives – at work, in DIY projects, and when doing creative work at home and in the garden: tesa® helps people affi x and mount items, do renovations and repairs, install insulation, and protect themselves from insects, dust, and drafts. Innovative Sugru® adhesive putty was added to the range in 2018. It is a contemporary prod- uct that embodies the idea of encouraging more and more people to “do it your- self.” The kneadable, moldable specialty adhesive is based on silicone and is highly temperature-resistant. It off ers a fi rm hold while still retaining its fl exibility, even under extreme conditions. Alongside the end consumer business, the company also off ers tailored product ranges for professional craftsmen, such as painters and fi nishers, in the Crafts- men segment. RESEARCH AND DEVELOPMENT New developments as the basis Innovations are the basis for tesa’s success and dynamic growth. The company’s laboratories in Germany, the United States, and China employ about 500 re- searchers.