EQS-Adhoc

Orell Füssli AG: Robust business model confirmed in a difficult environment - Seite 2

The result achieved is based on the two pillars of security and education: a Swiss focus in book retailing and an international business with long-term government contracts in security printing. The market for banknotes and value documents was intact in 2020 and the demand for banknotes during the Corona pandemic was present. The fundamentals of the banknote and value document market are robust and the market is growing at 4% and 6% per annum respectively. However, the business environment has become noticeably more challenging in recent years. Overcapacities in the market for banknotes are leading to increased competition and price pressure. The book trade in Switzerland also looks back on a challenging year, mainly due to the lockdown in spring and the Corona measures imposed to retailers during the 2^nd half of the year.

In 2020 Orell Füssli successfully completed the group strategy review process initiated two years ago. This has led to strengthened market positions of the divisions, which are now all operating profitably. Today, the Orell Füssli Group is more clearly structured, operate with more efficiency and focuses on selected areas of two global growth trends: security and education. The business will be further developed on this basis and active efforts are undertaken to shape the future.

In the field of security Orell Füssli sees attractive business potential in the protection of physical assets against misuse and forgery and in the management of identities. Opportunities are also offered by the growing demand for online services, which more and more authorities, cantons and municipalities are planning to implement. Digital identity is a central key to this. A new and attractive ecosystem of services will emerge in this area in the next few years, and Orell Füssli sees opportunities to become involved here. Its investment last year as a strategic partner of the Zurich based Procivis AG was a first step in this direction. Education is becoming an increasingly important key to prosperity. Orell Füssli is currently evaluating various strategic options to further strengthen the group's position in the education business, both analogue and digital.