Apr 22, 2021 | Weingarten
Despite difficult economic conditions in the pandemic year 2020, the CHG-MERIDIAN Group was able to deliver a successful financial year. New customer business proved to be particularly challenging, as economic uncertainty and supply shortages made forward-looking planning and investment much more difficult for companies and organizations. For these reasons, lease origination decreased by 12 percent to $2.157 billion in 2020.
“The pandemic has presented us with considerable challenges, but it has not blown us off course,” says Dr. Mathias Wagner, Chairman of the Board of Management. “Our digital and sustainable business model, based upon the circular economy, has proven itself highly resilient and reliable.” This is reflected in the growth of the technology portfolio that CHG-MERIDIAN manages on behalf of its customers, which reached a total of $9.2 billion as of December 31, 2020 (December 31, 2019: $7.7 billion).
The Group’s profit from ordinary activities (before taxes) amounted to $151 million, which was significantly higher than prior year (2019: $102 million). Net income (after taxes) rose from $73 million to $106 million, a very positive year-on-year increase of 45 percent.
One of the reasons for the positive trend of net income across the international Group is the strong growth in previous years. CHG-MERIDIAN’s portfolio has continually expanded across its three core areas of IT, industrial technology, and healthcare technology. The positive effects continued into 2020. The CHG-MERIDIAN Group has also built on its successful lifecycle management. It refurbished and remarketed a total of 880,000 used IT assets in 2020, a rise of 26 percent (2019: 697,000). 96 percent of all returned assets were given a second life.
“Despite the challenges presented by COVID-19, we have been able to further expand our technology portfolio and to respond flexibly to our customers’ changing requirements.”
For many companies, the pandemic has made it evident that they still aren’t properly positioned with their digital workplaces. At the same time ongoing digitalization and automation are key to their future competitiveness. In this regard, CHG-MERIDIAN is the right partner for these companies and offers customized technology financing and management for such transformation processes.
“Thanks to our value-added products, services, and solutions, we are optimistic about the future and are predicting further growth over the medium term,” says Dr. Wagner. Alongside digitalization, sustainability is another area that is driving demand for technology lifecycle management, while climate-friendly business practices are becoming an increasingly important competitive factor. In response to this demand, CHG-MERIDIAN launched carbonZER0 in February 2021, the company’s first carbon-neutral financing product for IT infrastructure and investments.
The Group itself is leading by example: “From 2021, CHG-MERIDIAN will be carbon-neutral. This underlines our clear commitment to sustainable and responsible corporate governance", says Dr. Wagner. Being carbon-neutral means that the entire CO₂-emissions generated in the course of the company’s own business activities will be avoided, reduced, or offset.