2. Advisory Board of the Würth Group
The Advisory Board of the Würth Group consists of nine members, most of which are non-family members. It has been chaired by Bettina Würth (63), the daughter of Reinhold Würth, since 2006. Bettina Würth will hand over her position as chair of the Advisory Board to her nephew Sebastian Würth (39). Sebastian Würth has been working for the company since 2012 and holds a Master of Arts in Family Entrepreneurship. Bettina Würth is also a member of the Supervisory Board of the Würth Group, and will become Honorary Chairwoman of the Advisory Board of the Würth Group.

3. Executive Vice President of the Würth Group for Arts and Culture
C. Sylvia Weber (63), in charge of art and cultural activities, will transfer most of her tasks to Maria Würth (34), the daughter of Bettina Würth. Maria Würth holds a Master of Arts in Art History from the University of Tübingen and, mentored by C. Sylvia Weber, has prepared herself for this position since 2018.

The succession of these three positions has been prepared for a long time. Both the family and the company attach great importance to continuity once the successors, who have known the company from their earliest age, will have taken over. This will ensure that the corporate culture we live by will be continued without any disruptions.

About the Würth Group
The Würth Group is the global market leader in the development, production, and sale of fastening and assembly materials. Other trading and production companies, the Allied Companies, operate in related business areas, ranging from electrical wholesaling and electronics to financial services. The Group currently employs more than 88,000 employees in over 400 companies with more than 2,700 shops across 80 countries. The Group generated sales of EUR 20.4 billion in the 2023 fiscal year. With over 8,000 employees, Adolf Würth GmbH & Co. KG in Künzelsau is the largest single company in the Würth Group. 

“The positive response to our roadshow and the high demand for our bond underlines the confidence investors have in our strategy and the company’s financial stability,” said Ralf Schaich, CFO and member of the Central Management Board of the Würth Group. “We took this opportunity to inform our investors about the business model, the current business development, and our further development strategy.”

The bond was issued as part of the company’s capital market-oriented financing strategy by its finance company Würth Finance International B.V. and is secured by an unconditional, irrevocable guarantee of Adolf Würth GmbH & Co. KG. The proceeds from the transaction will be used to refinance the EUR bond maturing in May 2025 at an early stage and to strengthen the Würth Group’s financing and liquidity base for general corporate purposes in the long term. The issue was led by the joint bookrunners BofA Securities, Deutsche Bank, HSBC, and LBBW.

The bond is listed on the Luxembourg Stock Exchange. The rating agency S&P Global Ratings is expected to give the bond an “A, outlook stable” rating, which reflects the Würth Group’s solid credit rating and sustainable business model. Further details on the terms and conditions of the bond and the roadshow presentations are available at wuerthfinance.net.

About the Würth Group
The Würth Group is the global market leader in the development, production, and sale of assembly and fastening materials. Other trading and production companies, known as the Allied Companies, operate in related business areas, ranging from electrical wholesale and electronics to financial services. The Group currently employs more than 88,000 employees in over 400 companies with more than 2,700 shops across 80 countries. The Group achieved sales of EUR 20.4 billion in the 2023 fiscal year. With over 8,000 employees, Adolf Würth GmbH & Co. KG in Künzelsau is the largest single company in the Würth Group. 

Legal Disclaimer
This press information neither constitutes an offer for sale nor a solicitation of an offer to purchase securities nor an invitation to otherwise purchase securities. It does furthermore not create the basis for a contract on the purchase or subscription of securities. This press release neither constitutes an offer for sale nor a solicitation of an offer addressed to any person in any jurisdiction where it is unlawful for such an offer or solicitation to be addressed.

Securities may be offered or sold in the United States of America only after prior registration or without prior registration pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933 (“Securities Act”), as in effect at any given time. The securities referred to in this press release have not been nor will they be registered under the Securities Act. There has not been nor will there be a public offering of the securities referred to in this press release in the United States of America.

Potential investors are requested to make their investment decisions regarding the securities referred to in this press release solely based on the information provided in the prospectus as approved and published by the Commission de Surveillance du Secteur Financier, Luxemburg (“CSSF”). The prospectus will be published by Würth Finance International B.V. on the website www.wuerthfinance.net

It is crucial to be able to offer solutions to current requirements such as sustainable construction. To give you an example: Electric cars weigh one third more than cars with a combustion engine. Würth’s Relast^® reinforcement system makes it possible to increase the load-bearing capacities of existing parking garages. This means these parking garages do not need to be torn down or rebuilt. This countercyclical approach already helped the Würth Group successfully overcome the challenges of the COVID-19 crisis. We invested in delivery capacities and good customer service.

Innovation at Würth means understanding the challenges our customers face

Würth’s research and development work addresses new issues such as sustainable construction, new technologies such as artificial intelligence or the Internet of Things (IoT) for greater efficiency on the construction site and, of course, the further development of its core business. Millions of plastic multi-purpose anchors are used by tradespeople every year. “Our vision was to develop an anchor that can shorten installation processes and reduce costs,” said Heiko Rosskamp, Head of Product Management and Development at Adolf Würth GmbH & Co. KG. “This is what we achieved with SHARK^® TWIST. This anchor works with almost any common building material.”

Thinking ahead in construction site management

The skilled trades are faced with enormous challenges. In its 2023/2024 Skilled Workers Report, the German Chamber of Industry and Commerce reported that more than 50 percent of companies in Germany are unable to fill vacancies in the construction industry. In addition, companies are confronted with increasing energy costs, new requirements for sustainable construction, and a challenging urban transport infrastructure.

“The modular prefabrication offered by Würth in the field of building service systems (TGA) is a major opportunity to reduce costs significantly and increase efficiency on the construction site,” explained Heiko Rosskamp. Würth pre-assembles all of the heating and ventilation piping systems on these modules. “At the large construction site in the FOUR quarter in Frankfurt am Main, 558,000 individual parts could be reduced to 3,500 assembly units, which significantly reduced the construction time.”

Networked technology: Würth makes its expertise available to customers

At Reinhold Würth Innovation Center Curio, Würth is developing IoT-compatible cordless power tools. Power tools equipped with sensors, radio technology and software are networked via a cloud solution and can access Würth’s application knowledge. Customers can transfer relevant processing data from the cloud directly to their power tool via the IoT module in the rechargeable battery of the power tool. For Würth customers, this means an enormous increase in efficiency in times of a shortage of skilled workers and increasing documentation requirements.

Germany: the most important individual market

Accounting for more than 40 percent of sales, Germany is the most important individual market for the Würth Group. The German companies achieved a 5.6 percent increase in sales in the 2023 fiscal year; against the backdrop of a declining gross domestic product, this is a positive development. Sales of Adolf Würth GmbH & Co. KG, the Group’s parent company and largest single company, grew by 6.1 percent. Outside Germany, the Würth Group’s sales grew slightly by 0.2 percent compared to the previous year.

Within the core business of Würth, the Auto division (+8.7 percent) and Metal division (+5.7 percent) developed positively. Sales in the Chemicals unit of the Allied Companies grew by 8.9 percent. Increasing sales by 9.9 percent, the Electrical Wholesale unit reported the strongest growth. The unit’s growth was driven by the increasing demand for photovoltaic installations, heat pumps and charging stations for electric cars. The acquisition of three companies, IDG01 S.p.A. (Turin, Italy, the completion of this acquisition is still subject to the approval of the antitrust authorities), TIM S.A. (Wroclaw, Poland) and Johannes Kraft GmbH (Stuttgart-Vaihingen, Germany), is further strengthening the position of this business unit. The unit is planning sales of more than EUR 4 billion in 2024.

E-business channel reports sales growth of 10.4 percent

Reporting sales of EUR 4.6 billion and growth of 10.4 percent, the e-business channel continued its positive development in the 2023 fiscal year. Its share of total sales in the Würth Group increased to 22.4 percent, with the Würth app showing the strongest sales growth of 17.4 percent. Within the framework of the Group’s multi-channel sales model, the app is an important pillar of the e-business channel that makes it easier for Würth customers to procure goods.

More than 1,400 new employees

The Würth Group hired 1,410 new employees in the 2023 fiscal year. Currently, the Group employs 87,047 people, 43,967 of which work in sales. In Germany, the company has 27,128 employees.

Equity creates stability

A high level of equity financing provides security, particularly in challenging times. In the 2023 fiscal year, the Würth Group’s equity increased to EUR 8,761 million. This corresponds to an increase of 10.7 percent. The equity ratio grew to 48.7 percent (2022: 46.0 percent). The rating agency S&P Global confirmed the Würth Group’s “A/outlook stable” rating in 2023.

Focus on the second half of the year

The economic forecasts for Germany had been reduced significantly in the first months of the year: Today, the Organisation for Economic Cooperation and Development (OECD) merely predicts growth of 0.2 percent this year. Nevertheless, there are also positive news: Inflation has declined since the beginning of the year. As the Federal Statistical Office in Germany announced, the rate in April 2024 came to 2.2 percent, compared to 2.5 percent in February 2024. As a result, the capital markets are expecting the first interest rate cuts by the European Central Bank (ECB) in the coming weeks.

“We expect the macroeconomic situation to improve in the second half of 2024. What also makes us optimistic is the fact that we succeeded in acquiring 110,000 additional customers in the first four months of 2024, which is an indicator of us expanding our market share despite difficult framework conditions. The more than 4.3 million customers from various regions and business units make the Würth Group resilient against local or industry-specific economic cycles. For 2024 as a whole, we therefore expect sales to remain at the previous year’s level and a slight decline in the operating result. Assuming the economy will recover, the Group will stick to its plan of creating jobs in sales and IT as well as in the field of research and development,” Robert Friedmann said. 

All content can also be found in our online 2023 Annual Report at www.wuerth.com/ar2023.

About the Würth Group

The Würth Group is the global market leader in the development, production and sale of assembly and fastening materials. Other trading and production companies, known as the Allied Companies, operate in related business areas, ranging from electrical wholesale and electronics to financial services. The Group currently employs more than 87,000 employees in over 400 companies with more than 2,700 shops across 80 countries. The Group achieved sales of EUR 20.4 billion in the 2023 fiscal year. With over 7,900 employees, Adolf Würth GmbH & Co. KG in Künzelsau is the largest single company in the Würth Group.

In March 2023, Würth Group concluded an agreement with a group of TIM’s shareholders including main shareholder Krzysztof Folta to acquire around 40 percent of the shares in TIM S.A. and issued a public tender offer for all shares to the shareholders of TIM S.A.. The transaction was subject to the approval of the responsible competition authorities. On January 25^th, 2024, this approval was granted including a condition acceptable to the buyer.

TIM S.A. operates the largest e-commerce platform for electrical wholesaling in Poland, generating more than 70 percent of its revenue purely through online channels. In addition, the company operates a powerful logistics platform through its fully owned subsidiary 3LP S.A.. This makes TIM S.A. an ideal fit for the Würth Group's current electrical wholesaling activities in Poland, which are grouped under the umbrella of W.EG Polska. With this acquisition, the Würth Group becomes the market leader in electrical wholesaling in Poland with access to additional e-commerce and logistics capacities. After the acquisition, both units of TIM S.A., the electrical wholesale company as well as the logistics company will continue to operate as stand-alone companies headed by the current management teams in their respective functions. 

Ulrich Liedtke, Executive Vice President of W.EG and responsible for the business in eight European countries, explains: “The year 2021 marked a turning point in our development when we were able to expand our position in Poland with the acquisition of Kaczmarek Elektric S.A. and lay the foundation for W.EG Polska in its current structure. Further expanding on both, the underlying growth strategy and Würth Group’s culture whilst at the same time highly appreciating local entrepreneurship, we are confident that both, TIM’s electrical wholesale activity as well as its logistics wing will continue their success stories.

The companies are going to benefit twofold. Obviously, we are going to benefit from an enhanced cooperation within our enlarged Polish team. Beyond that, we hope that the mutual exchange of experience will support all European companies of the Würth Electrical Wholesale Unit and open new business opportunities for both of TIM’s operations.”

Krzysztof Folta, founder and CEO of TIM S.A. underlines: “Looking at the development opportunities for TIM S.A., I am convinced that joining forces with the Würth Group presents a very attractive outlook for all our stakeholders. Both operating arms of our company, the electrical online wholesaler as well as the logistics service wing of it, will maintain their integrity and offer all its employees an excellent perspective for the future. This is accompanied by a very attractive offer for our shareholders. To put it simple: TIM is going to continue its success story!”

About TIM Group
TIM S.A. was founded in 1987 in Wroclaw as a traditional electrotechnical wholesaler. In 2013 the company changed its business model to become a modern e-commerce player. Today, TIM S.A. operates a leading B2B e-commerce platform in Poland and is the country's leading electrical wholesaler. The company has the widest offer of electrotechnical products in Poland, available within 24 hours of placing an order. TIM S.A. currently employs over 320 people at its headquarters in Wroclaw and 16 sales offices throughout Poland. According to the preliminary unconsolidated financial data, TIM S.A. generated sales revenue of PLN 1.4 billion in the 2023  fiscal year.
TIM S.A. has one subsidiary 3LP S.A. which was established in 2016 from the spin-off of TIM S.A.’s Logistics Department The company is the operator of six logistics centers in Poland, offering fulfillment services for entities active in the e-commerce market (also outside of the TIM Group, e. g. IKEA, Oponeo.pl). 3LP S.A. provides services using unique and state-of-the-art warehouse automatics solutions. It currently employs over 680 people. In 2023, 3LP S.A. sent more than 6.9 million packages and pallets from its logistics centers.

About the Würth Electrical Wholesale Group
The Electrical Wholesale Unit of the Würth Group is one of the leading electrical wholesalers on the European mainland. Ulrich Liedtke and Uwe Schaffitzel, Executive Vice Presidents of the Würth Group, are responsible for this business unit. In 2023, Würth Electrical Wholesale pulled in sales of EUR 3,8 billion and reported total growth of 10.0 percent over the previous year. This corresponds to roughly 18.5 percent of the Würth Group’s total sales volume.

About the Würth Group
The Würth Group is the global market leader in the development, production and sale of assembly and fastening materials. Other trading and production companies, known as the Allied Companies, operate in related business areas, ranging from electrical wholesale and electronics to financial services. The Group currently employs more than 87,000 employees in over 400 companies with more than 2,700 pick-up shops across 80 countries. The Group achieved sales of EUR 20.4 billion in the 2023 fiscal year. With over 7,900 employees, Adolf Würth GmbH & Co. KG in Künzelsau is the largest single company in the Würth Group.

Ulrich Liedtke, Executive Vice President of W.EG and responsible for the business in eight European countries, explains: “Thanks to the success stories of MEF and MEB we are confident to further expand our market share in the central and northeastern part of Italy. However, it was obvious that we would greatly benefit from a strong addition in the northwest. We are very pleased that we were able to convince IDG01 to join our group. In Piedmont, we are gaining a strong position in a region which we were previously not represented in and are expanding our growth opportunities in Lombardy and Liguria. As with MEF and MEB before, IDG01 will become an independent, yet co-operating company within the Würth Electrical Wholesale network.”

Paolo Caraglio, CEO and Chairman of IDG01, underlines: “Looking at development opportunities for our company, I am convinced that the partnership with the Würth Group provides the best option. This will enable IDG01 to continue its growth strategy and benefit from central resources while maintaining its integrity and offering its employees a good perspective for the future.”

About IDG01 S.p.A..
The company was founded in Turin, Piedmont in 1980 and achieved a sales volume of EUR 285 million in 2023. It employs more than 580 individuals and operates out of 41 outlets. The product range consists mainly of lighting, building automation, low voltage power distribution and controls, renewable energy, cables and a broad portfolio of industrial automation products. The product offering is complemented by excellent customer support and other services. IDG01 S.p.A. is a highly respected and leading company in its markets. It serves more than 15,500 active customers with electrical installers representing the biggest group.

About the Würth Electrical Wholesale Group
The Electrical Wholesale Unit of the Würth Group is one of the leading electrical wholesalers on the European mainland. Ulrich Liedtke and Uwe Schaffitzel, Executive Vice Presidents of the Würth Group, are responsible for this business unit. In 2023, Würth Electrical Wholesale pulled in sales of EUR 3,8 billion and reported total growth of 10.0 percent over the previous year. This corresponds to roughly 18.5 percent of the Würth Group’s total sales volume.

About the Würth Group
The Würth Group is the global market leader in the development, production and sale of assembly and fastening materials. Other trading and production companies, known as the Allied Companies, operate in related business areas, ranging from electrical wholesale and electronics to financial services. The Group currently employs more than 87,000 employees in over 400 companies with more than 2,700 pick-up shops across 80 countries. The Group achieved sales of EUR 20.4 billion in the 2023 fiscal year. With over 7,900 employees, Adolf Würth GmbH & Co. KG in Künzelsau is the largest single company in the Würth Group.

· Würth Electrical Wholesale Group expands in Italy

· Core business in the skilled trades and business units Electrical Wholesale and Chemicals develop positively

The Würth Group, the global market leader in the development, production and sale of assembly and fastening materials reported annual sales of more than EUR 20 billion for the first time in its corporate history according to its preliminary financial statements on the 2023 fiscal year. Despite the tense global economic and political situation, the Group was able to grow again, even though the difficult conditions had an impact on the operating result. Sales grew by 2.4 percent. Adjusted for currencies, sales growth came out at 3.5 percent. The operating result is expected to remain below last year’s result at EUR 1.4 billion (2022: EUR 1.6 billion), the second-best result in the history of the Group.

“Given the cooling global economy, we are satisfied with the past fiscal year. The sales mark of EUR 20 billion is a special milestone for us. We were able to double our sales volume over the past nine years,” said Robert Friedmann, Chairman of the Central Management Board of the Würth Group. “Last year, the Group’s heterogeneous structure across different industries and regions and our business model were once again the basis of our success. The construction sector, an important industry for the Würth Group, showed a slow sales development, which could be compensated for by other strategic business units such as the Electrical Wholesale unit.”

In addition to the ongoing conflict between China, Taiwan, and the US, the wars in Ukraine and the Middle East, inflation-driven cost increases, especially for energy and raw materials, and high lending rates that hampered demand in the construction industry also had a negative impact on the result.

“Achieving these results in such an environment shows that our more than four million customers greatly appreciate our products and services. They trust us and that is our most important objective. The Würth Group has proven in the past that it can overcome major challenges successfully. The solidarity of our employees and the support of the family, especially by Prof. Reinhold Würth and Bettina Würth, give us the necessary stability,” emphasized Robert Friedmann.

Companies of the Würth Group in and outside Germany

The Würth companies in Germany developed positively. The companies generated sales of EUR 8.3 billion, a sales plus of 5.6 percent. The companies outside Germany reported sales of EUR 12.1 billion (+0.3 percent). Among the different business units, Würth Line Craft continued to develop positively, reporting sales growth of 3.4 percent. Sales in the Chemicals unit of the Allied Companies grew by 7.5 percent. Reporting growth of 10.0 percent to EUR 3.8 billion, the business unit Electrical Wholesale stands out, having a major impact on the overall development of the Würth Group due to its high share of sales. Apart from service leadership, high product availability and above-average logistics expertise, the positive development was driven by the renewable energies boom, especially in the field of photovoltaic systems.

In Italy, the Würth Electrical Wholesale Group (W.EG) expanded its footprint by entering into a strategic partnership (controlling interest) with IDG01 S.p.A. in Turin, the leading electrical wholesaler in the Piedmont region. The planned transaction is subject to the approval of the antitrust authorities. In 2023, the company generated sales of EUR 285 million with more than 580 employees and 41 stores. The product range primarily covers the segments of lighting, building automation, low-voltage power distribution and control systems, renewable energy systems, cables, and a wide portfolio of industrial automation products.

With growth of 10.4 percent on the previous year, e-business sales remain successful. At EUR 4.6 billion, the share of e-business sales in total sales increased to 22.4 percent.

Würth Group has a total of 87,047 employees

The Würth Group hired 1,410 new employees in the 2023 fiscal year. Currently, the Group employs 87,047 people, 43,967 of which work in sales. In Germany, the company has 27,128 employees.

The Press Conference on the Annual Financial Statements of the Würth Group for the 2023 fiscal year will take place in a hybrid format at Reinhold Würth Innovation Center CURIO in Künzelsau, Germany, on Tuesday, 14 May 2024.

About the Würth Group
The Würth Group is the global market leader in the development, production and sale of assembly and fastening materials. Other trading and production companies, known as the Allied Companies, operate in related business areas, ranging from electrical wholesale and electronics to financial services. The Group currently employs more than 87,000 employees in over 400 companies with more than 2,700 shops across 80 countries. According to the preliminary annual financial statements, the Group generated sales of EUR 20.4 billion in the 2023 fiscal year. With over 7,900 employees, Adolf Würth GmbH & Co. KG in Künzelsau is the largest single company in the Würth Group.

The Group remains on course for growth, albeit at a much slower pace than in the previous two years. “We feel the slowdown in the economy in the first half of 2023: After two years of record sales and operating result, the economic slowdown is becoming apparent,” summarizes Robert Friedmann, Chairman of the Central Management Board of the Würth Group.

After almost three years of the COVID-19 pandemic and related supply chain problems, the supply situation is improving for the Group. At the same time, interest rates remain at a high level, which, in turn, hampers the demand in the construction industry. Geopolitical challenges such as the smoldering conflict between China, Taiwan and the USA, as well as the war in Ukraine and the associated high energy prices influence the economic growth in Germany. “Against this backdrop, we are very satisfied with the development in the first half of 2023,” emphasizes Friedmann.

Companies in Germany and abroad
The companies of the Würth Group in Germany generated sales of EUR 4.2 billion and with almost double-digit growth (+9.6 percent) reported a positive development overall. It is pleasing to see that well-established companies of the Würth Group such as Würth Industrie Service in Bad Mergentheim, tool distributor HAHN+KOLB in Ludwigsburg and electrical wholesaler FEGA & Schmitt in Ansbach have made a decisive contribution to this successful result, which was achieved without acquisitions. The companies abroad generated sales of EUR 6.3 billion (+3.5 percent). Growth drivers were the companies in southern and eastern Europe.

Looking at the different industries in which Würth operates, we see a split picture: The Electrical Wholesale unit seamlessly continues the successes of the previous year growing by 17.3 percent in the first half of the year. This sector continues to benefit from the boom in renewable energies, especially in the field of photovoltaic installations. The companies of the Chemicals unit can also look back on strong growth in the first half of 2023. On the other hand, companies such as Würth Elektronik eiSos, manufacturers of fittings and the Trade unit are affected by the global economic slowdown.

Adolf Würth GmbH & Co. KG, the largest individual company in the Würth Group, generated sales of EUR 1.5 billion including intra-Group sales (+8.6 percent).

Focus on digitalization
Digitalization of processes is indispensable for the competitiveness of companies. The procurement of goods via digital channels such as the online shop or Würth App makes our customers’ day-to-day work easier. This is proven by the growth of e-business in the Würth Group: Sales went up by 15.2 percent compared to the previous year, accounting for 22.1 percent of total sales.

Employees
The Würth Group hired 1,409 employees in the first half of 2023. Currently, the Group employs 87,046 people, 43,859 of which work in sales. At the beginning of 2023, the number of employees worldwide came to 85,637. In Germany, the Group has 26,784 employees on the payroll.

Operating result
After six months, the operating result of the Würth Group amounts to EUR 680 million, which is slightly below the same period under review of last year (EUR 720 million). Apart from higher personnel expenses, this development is due to increased costs for mobility and maintenance, as well as the ongoing price pressure. The rating agency S&P Global has confirmed the Würth Group's A rating for over 25 years. This rating confirms the Group’s financial stability and sound financial footing. It is an expression of a positive credit rating as well as the continuous and successful development of the Group and thus a sign of the stability of the business model.

Social commitment is an integral element of Würth
“As a family business, we see it as our duty to grant support wherever possible. We want to live up to the Würth family’s commitment to ownership,” adds Friedmann on the voluntary commitment of roughly 100 Würth employees at the 2023 Special Olympics World Games, the world’s largest inclusive sports event, in Berlin. The Würth volunteers supported the competitions soccer, futsal and beach volleyball. As presenting partner, Würth also represented the beach volleyball competition with its logo. The commitment to people with disabilities is based on an initiative of Carmen Würth.

Outlook for the second half of the year
It is currently difficult to predict how the many conflict hotspots and their consequences such as high energy prices will affect the Würth Group. Even though the German economy is weakening, the global economy is slowly recovering according to the Organisation for Economic Co-operation and Development (OECD). “On a positive note, the transport markets have clearly recovered and the COVID-19 pandemic is not as prevalent as before. In general, it can be said that supply chains have stabilized significantly again, which means that availability has almost reached the pre-crisis level. Procurement prices, which are still well above the pre-crisis level, remain problematic. Provided conditions do not deteriorate drastically, we expect mid-single-digit sales growth and a slight decline in operating result,” Friedmann says.
 

The next Press Conference on the Annual Financial Statements 
of the Würth Group will take place on 14 May 2024.

About the Würth Group
The Würth Group is the global market leader in the development, production and sale of assembly and fastening materials. Other trading and production companies, known as the Allied Companies, operate in related business areas, ranging from electrical wholesale and electronics to financial services. The Group currently employs more than 87,000 employees in over 400 companies with more than 2,500 pick-up shops across 80 countries. The Group achieved sales of EUR 19.9 billion in the 2022 fiscal year. With over 7,700 employees, Adolf Würth GmbH & Co. KG in Künzelsau is the largest single company in the Würth Group.

The Würth Group has eight companies and more than 900 employees in Turkey. 
 

About the Würth Group

The Würth Group is the global market leader in the development, production, and sale of fastening and assembly materials. Other trading and production companies, known as the Allied Companies, operate in related business areas, ranging from electrical wholesale and electronics to financial services. The Group employs more than 85,000 employees in over 400 companies with more than 2,500 pick-up shops across 80 countries. According to preliminary annual financial statements, the Group generated sales of EUR 19.95 billion in the 2022 fiscal year. With 7,600 employees, Adolf Würth GmbH & Co. KG in Künzelsau is the largest single company in the Würth Group.

“We are operating in difficult economic and political conditions: The war in Ukraine, material and supply shortages, and price increases continue to be challenging. I would therefore like to thank our more than four million customers worldwide for their trust in our services and our suppliers for their cooperative partnership. At the same time, we can rely on the strength of our corporate culture, the solidarity of all employees and, of course, the support of a family business in times of crisis. This gives us the necessary stability,” said Robert Friedmann, Chairman of the Central Management Board of the Würth Group.

Electrical Wholesale, Electronics and the Industry Division of the Würth Line are growing above average

The sales volume of the Würth Group in Germany increased to EUR 7.85 billion (2021: EUR 6.94 billion). The Würth companies outside Germany generated EUR 12.10 billion (2021: EUR 10.12 billion).

The Electrical Wholesale unit was particularly successful, reporting growth of 25.0 percent. Service leadership, a very high level of product availability combined with above-average logistics expertise are the reasons for this very good development. In addition, this sector benefited from the renewable energy boom. The Electronics Group, selling passive electronic components, circuit boards and electronic and electromechanical solutions, showed a very strong business development as well, achieving sales growth of 22.5 percent. The Industry Division of the Würth Line also reported above-average sales growth of 20.1 percent.

E-business sales grew by 21.2 percent compared to the previous year, accounting for 20.7 percent of total sales.

Würth Group has a total of 85,637 employees

The Würth Group recruited 2,454 new employees in the 2022 fiscal year. Currently, the Group employs 85,637 people, 43,297 of which work in sales. In Germany, the company has 26,113 employees.

Confident for 2023 despite crises, end of material shortages in sight

According to the German ifo Institute, material shortages in the industrial sector have improved somewhat. In many sectors, bottlenecks are easing. Mechanical engineering and the automotive industry remain the sectors most affected by material shortages. In the construction sector, projects are being cancelled or postponed due to rising construction costs and interest rates. “The current challenges will continue to be an issue in 2023. It remains to be seen how consumer behavior and energy prices will develop, and what impact China’s relaxed zero-COVID policy will have on supply chains. Operating in this fragile, interdependent environment will remain a key challenge in 2023. Despite all crises, we will maintain last year’s momentum and positive spirit, stay optimistic and act with caution,” according to Friedmann.

The Press Conference on the Annual Financial Statements of the Würth Group will take place on Thursday, 4 May 2023, in digital form.

About the Würth Group

The Würth Group is the global market leader in the development, production, and sale of fastening and assembly materials. Other trading and production companies, known as the Allied Companies, operate in related business areas, ranging from electrical wholesale and electronics to financial services. The Group employs more than 85,000 employees in over 400 companies with more than 2,500 pick-up shops across 80 countries. According to the preliminary annual financial statements, the Group generated sales of EUR 19.95 billion in the 2022 fiscal year.

There will also be changes in the Advisory Board of the Würth Group (comparable to the supervisory board of a listed company) in the foreseeable future. As of 1 January 2025, Bettina Würth will hand over the chair of the Advisory Board to Sebastian Würth and will become honorary chairperson of the Advisory Board alongside Reinhold Würth.

Maria Würth is set to take over the management of the Würth Group's art and culture activities when C. Sylvia Weber, who is highly successful in her role as Executive Vice President, retires. Maria Würth is already a member of the Board of the Würth Foundation.

These decisions ensure the Würth Group's unchanged continuity in terms of objectives, working style and corporate culture in the future after Reinhold Würth's passing.

About the Würth Group

The Würth Group is the global market leader in the development, production, and sale of fastening and assembly materials. Other trading and production companies, known as the Allied Companies, operate in related business areas, ranging from electrical wholesale and electronics to financial services. The Group employs more than 84,000 employees in over 400 companies with more than 2,500 pick-up shops across 80 countries. The Group achieved sales of EUR 17.1 billion in fiscal year 2021. With 7,500 employees, Adolf Würth GmbH & Co. KG in Künzelsau is the largest single company in the Würth Group.

The globally operating Group recorded sales of EUR 9.9 billion in the first six months, corresponding to an increase of 18.4 percent compared to the same period of the previous year and of 17.0 percent adjusted for currency effects.

Companies in Germany and abroad are growing

In Germany, the Würth Group generated sales of EUR 3.9 billion (+12.7 percent). Especially the companies operating in Germany’s Electrical Wholesale unit managed a very robust sales development. The company eiSos in Waldenburg was even able to build seamlessly on the strong year of 2021. After months of rather subdued business development, the Trade unit recovered and grew at double-digit rates. The companies abroad generated sales of EUR 6.0 billion (+22.3 percent). The companies in Spain, Italy, North America and South America were the driving force behind growth. Adolf Würth GmbH & Co. KG, the largest individual company of the Würth Group, generated sales of EUR 1.4 billion including intra-Group sales (+10.1 percent). The further expansion of multi-channel sales has paid off: E-business sales in particular grew by 21.4 percent year on year, representing 20.2 percent of total sales.

Volatile economic situation

Since the beginning of the year, the German economy has been recovering gradually from the effects of the COVID-19 pandemic of the last two and a half years, but the positive trend is being curbed severely, as the conflict in Ukraine and China's zero-Covid strategy are driving up prices, while increased energy costs and supply bottlenecks are pushing prices even further. For the first time since the beginning of the pandemic, container ships are also jamming on the North Sea along the German, Dutch and Belgian ports. The Kiel Institute for the World Economy estimates that more than eleven percent of all goods shipped worldwide cannot be cleared at present. 

Operating result

As of June 2022, the operating result of the Würth Group is at EUR 720 million and thus clearly up on the previous year (EUR 520 million). This positive development is above all the result of productivity increases at the large, established companies in Germany, Southern Europe and the USA.

Employees

The Würth Group acquired 1,311 new employees in the first half of 2022. Currently, 84,494 people work in the Group, 41,829 of which are active in the sales force. At the end of 2021, the Group had a total of 83,183 employees. In Germany, the Group has 25,807 employees.

Investments at headquarters ensure the Group’s future viability

The company lays the foundation for further growth by investing in its future viability. The expansion of the warehouse and logistics center at the headquarters in Künzelsau-Gaisbach, the largest logistics investment in the Group’s history, is a clear commitment of Würth to the Hohenlohe region. In addition, the company has built an innovation center at the premises of the Group headquarters to strengthen its own manufacturing expertise and innovative strength. It will be inaugurated and put into service on 28 September 2022. 

Outlook for the second half of the year

The volatility of the current situation makes it difficult to assess how the economy will develop. Supply bottlenecks will continue to affect industry and the construction sector. The same applies to high commodity prices and the development of inflation and interest rates. The future gas supply also remains uncertain after the Federal Ministry for Economic Affairs and Climate Action declared the second stage of the gas emergency plan in Germany on June 23, 2022. 

About the Würth Group

The Würth Group is the global market leader in the development, production, and sale of fastening and assembly materials. Other trading and production companies, known as the Allied Companies, operate in related business areas, ranging from electrical wholesale and electronics to financial services. The Group employs more than 84,000 employees in over 400 companies with more than 2,500 pick-up shops across 80 countries. The Group achieved sales of EUR 17.1 billion in fiscal year 2021. With 7,500 employees, Adolf Würth GmbH & Co. KG in Künzelsau is the largest single company in the Würth Group.

The issue was led by the joint lead managers DZ Bank, UniCredit Bank, UBS and Banco Santander. Following the announcement of the issuance, the transaction was successfully completed on the same day. For investors, the issue yields 2,1740 percent per annum.

Given the relatively turbulent times, the issuance of the second largest bond in history is a sign of confidence in the stability of the company. It strengthens the Würth Group's long-term financing and liquidity base as a foundation for future growth. The average term of the Würth Group's outstanding financial liabilities is extended significantly.
 

About the Würth Group

The Würth Group is the world’s market leader in the development, production, and distribution of assembly and fastening materials. Other trading and production companies, known as the Allied Companies, operate in related business areas, including electrical wholesaling, electronics, and financial services. The Group employs more than 83,000 employees in over 400 companies operating 2,500 shops across 80 countries. According to the audited annual financial statement, the Group generated consolidated sales of EUR 17.1 billion and an operating result before tax of EUR 1,270 million in the 2021 fiscal year.
 

Legal Disclaimer

This press information neither constitutes an offer for sale nor a solicitation of an offer to purchase securities nor an invitation to otherwise purchase securities. It does furthermore not create the basis for a contract on the purchase or subscription of securities. This press release neither constitutes an offer for sale nor a solicitation of an offer addressed to any person in any jurisdiction where it is unlawful for such an offer or solicitation to be addressed.

Securities may be offered or sold in the United States of America only after prior registration or without prior registration pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933 (“Securities Act”), as in effect at any given time. The securities referred to in this press release have not been nor will they be registered under the Securities Act. There has not been nor will there be a public offering of the securities referred to in this press release in the United States of America.

Potential investors are requested to make their investment decisions regarding the securities referred to in this press release solely based on the information provided in the prospectus as approved and published by the Commission de Surveillance du Secteur Financier, Luxemburg (“CSSF”). The prospectus will be published by Würth Finance International B.V. on the website www.wuerthfinance.net.

“The COVID-19 pandemic and the resulting price increases as well as material shortages on the procurement market challenged us last year. The distinct increase in sales and operating result furnishes proof that our strategy is worthwhile also in times of crisis,” says Robert Friedmann, Chairman of the Central Managing Board of the Würth Group. “This is the reason why we started the year 2022 full of optimism. That is, until 24 February, when the conflict between Russia and Ukraine escalated. Now, we have to manage this unprecedented situation of uncertainty every single day.“
 

The 2021 fiscal year

Always at the customers’ beck and call: brick-and-mortar, personally, digitally

The Group’s international orientation with more than 400 companies in 80 countries, the broad business structure thanks to the diversified business areas of the Würth Line and the Allied Companies and the multi-channel strategy also paid off during the last fiscal year. 24/7, Würth offers its customers a perfect range of contact points worldwide: brick-and-mortar with 2,500 shops, personally in the form of more than 33,000 sales representatives and digitally via the Würth App, the online shop and e-procurement. At roughly 20 percent of total sales, e-business reported a very dynamic development. That way, during the pandemic, the Group never lost touch with its customers and was able to safeguard material supply throughout.

German and international companies reporting double-digit growth

With a sales share of 40.7 percent, Germany remains the most important individual market for the Würth Group. In the second year of the pandemic, the German companies proved to be battle-tried and generated a sales plus of 14.3 percent. The Electrical Wholesale Unit (+28.9 percent) and Würth Elektronik Group (+32.5 percent) were particularly successful. Division Industry compensated for the decline in sales from 2020 and achieved the highest growth among the Würth Line divisions at 18.4 percent. Adolf Würth GmbH & Co. KG, the largest single company in the Group, increased its sales by 13.4 percent—the strongest growth in the last ten years. The companies outside Germany also succeeded in achieving a sales increase of 21.4 percent.
 

Lack of skilled personnel and the procurement situation weigh heavily on the trades

Würth relieves strain through digitalization

Supply and material bottlenecks that already existed before the Ukraine crisis continue to complicate the day-to-day work of tradespeople. Metals, electronic components or plastics are difficult to obtain. Friedmann emphasizes: “There still is lots of sales potential out there once supply security has been restored.” In the 2021 Skilled Workers Report, the Association of German Chambers of Industry and Commerce reports that more than one in two companies is unable to fill vacancies in the long term due in part to a lack of staff. Among other things, this results in an additional burden for employees, increasing labor costs for keeping staff on board and hiring new employees, it leads to rejecting orders and, ultimately, to reduced competitiveness. 

“The importance of the industry was demonstrated during the pandemic. Being essential businesses, the trades kept going. From the small but essential repair of an electrical installation to the sustainable infrastructure construction project—the trades are and will remain future-proof. We see it as our primary task to support our customers wherever we can.” This is how Robert Friedmann describes the challenges in the trades.

Intelligent products, smart services and systems

It is Würth’s objective to make customers’ work easier so that they can focus on their core business. 

“We offer intelligent products and smart services and systems for this,” says Dr. Heiko Roßkamp, Head of Research and Development at Adolf Würth GmbH & Co. KG. “A perfect example are our certified anchors along with appropriate anchor dimensioning software. With the help of this digital tool, customers can determine which and how many anchors to use. This saves both time and money. The certification facilitates access to tenders.“

The M-CUBE^® cordless power tool series provides excellent examples of Würth’s system world to customers: “You no longer need to waste valuable time on looking for the proper battery. In the M-CUBE^® power tool series, one battery fits all, from the hand-held circular saw to the impact drill driver. Every employee always has the right battery on every construction site. The digital management tool ORSY^®online keeps track of who is using which power tool and when the next inspection date is due,” explains Roßkamp. “Thanks to the new Innovation Center, we will be able to launch such high-quality products developed in-house even faster.”

Thanks to the ORSY^® System Rack Sensor, Würth customers do not even have to think about material replenishment. The rack identifies the withdrawal and reorders automatically. On 2 May 2022, towio, the new cloud solution for tradespeople, went live. This digital platform with an integrated app store enables customers to do their office work on laptops or mobile phones. Be it order processing, the preparation of service reports, material orders, photo documentation or payment processing: Through the app store, customers assemble these individual modules according to their needs. Links to the online shop and already existing e-services such as the management tool ORSY^®online make it possible for customers to handle all administrative tasks using only one tool. 

“We keep our customers’ backs free and give them the freedom to focus on their core business and other topics such as consulting, opening up new business or personnel recruitment,“ says Friedmann about the advantages.
 

Employees

In the 2021 fiscal year, the number of employees worldwide increased to 83,183 (2020: 79,139). Of those, more than 33,000 work in the sales force. In Germany, the Group employs 25,438 people. At 4,044 new colleagues, this is the biggest increase in the last ten years.
 

Equity capital provides security

In the past fiscal year, the Würth Group’s equity increased by 15.3 percent to EUR 6.8 billion. With this plus of EUR 904 million, the equity ratio was stepped up to 45.2 percent (2020: 43.8 percent) and is therefore on a very good level. In 2021, the rating agency Standard & Poor’s confirmed the Würth Group’s rating with A/outlook stable, demonstrating the company’s stability.
 

Looking ahead to 2022

The challenges posed by the COVID-19 pandemic have been magnified with the conflict in Ukraine and the pandemic situation in China. Due to the current economic and global political situation, a reliable forecast for the further development of the Würth Group in 2022 cannot be given. In the first four months of 2022, the Group generated sales growth of 18.8 percent; adjusted for currencies, this would be 17.2 percent. Both from a regional point of view and in terms of strategic business units, said sales growth is broad-based. The number of employees increased by 4.4 percent. The operating result is 11 percent above the previous year. 

“Despite the global economic and political events, we are cautiously optimistic about this development,” Friedmann says. “We focus on anticipating challenges such as delays in the supply chain, material bottlenecks and price increases so that we can remain a reliable partner for our customers in the future.”
 

About the Würth Group

The Würth Group is the world’s market leader in the development, production, and distribution of assembly and fastening materials. Other trading and production companies, known as the Allied Companies, operate in related business areas, including electrical wholesaling, electronics, and financial services. The Group employs more than 83,000 employees in over 400 companies operating 2,500 shops across 80 countries. According to the audited annual financial statement, the Group generated consolidated sales of EUR 17.1 billion and an operating result before tax of EUR 1,270 million in the 2021 fiscal year.

About the Würth Group

The Würth Group is the global market leader in its core business: the sale and manufacturing of fastening and assembly materials. Other wholesale and production companies, the so-called Allied Companies, operate in related areas, including electrical wholesaling, electronics and financial services. The Group employs more than 83,000 employees in over 400 companies with more than 2,400 pick-up shops across 80 countries. According to its preliminary annual financial statements, the Group generated consolidated sales of EUR 17.1 billion and an operating result before tax of EUR 1.2 billion in the 2021 fiscal year.

In Southern and Western Europe, the Group companies reported above-average growth rates, which were partly due to the very high sales slumps in 2020 in countries like Spain, Italy and France caused by the COVID-19 pandemic. Würth Elektronik eiSos Group (+ 36.8 percent) and the Electrical Wholesale unit (+ 28.8 percent) were particularly successful. Adolf Würth GmbH & Co. KG (AW KG), the parent company and the largest individual company in the Würth Group, generated external sales of EUR 2.1 billion (+ 11.3 percent).

According to preliminary annual financial statements, the operating result of the Würth Group is clearly up on the previous year with EUR 1.2 billion (2020: EUR 775 million). Strong sales growth and higher productivity contributed significantly to the positive result. In addition, due to the pandemic, costs for travel, trade fairs and conferences did not incur in 2021. 

Multi-channel strategy takes effect

The number of pick-up shops worldwide has more than doubled to 2,497 in the past ten years. Our customers’ procurement of material via these shops represents an important component of our multi-channel strategy. In addition, our digital channels such as the online shop, e-procurement and the Würth App offer the right solutions for contactless shopping. In the business year 2021, the e-business unit generated sales of EUR 3.4 billion, which corresponds to a new record with 19.9 percent of the Group’s total sales.

Employees

The number of employees in the Würth Group increased by 4,044 to 83,183 in fiscal 2021. In Germany, the number of employees amounts to 25,438. Around the world, the Würth Group employs more than 33,000 sales representatives.

Own production companies ensure independence from supply chains

The Group’s own production plants in Germany and Europe ensure a certain independence from global supply chains. 

Nevertheless, the supply bottlenecks also made themselves felt in individual areas of the Würth Group. For example, the shortage of chips had an impact on companies in the Group that depend on the automotive industry as they supply to OEMs directly.

Investment in the Künzelsau site and the Hohenlohe region

In the third quarter of 2022, the new innovation center in Künzelsau-Gaisbach will be opened with the aim of streamlining innovation cycles, bringing new and further developments to market more quickly and offering customers even more solutions of added value. At the same time, a new parking garage is being built with 752 parking spaces, of which 48 are e-charging spaces. In addition, the company is investing in a new administration building with around 375 workplaces. Construction start is scheduled for 2024. The focus of this building project is on sustainability and the circular economy: The 49-meter high-rise building will be based on a hybrid wood construction. The high proportion of prefabricated wood elements will reduce the carbon footprint.

Outlook on 2022

The situation on the procurement market will remain tense in 2022. The decision of the German government to make vaccination compulsory will have a significant impact on the development of the pandemic and thus on the economic activity. 

The Press Conference on the Annual Financial Statements of the Würth Group will take place on 11 May 2022.

About the Würth Group

The Würth Group is the global market leader in its core business: the sale and manufacturing of fastening and assembly materials. Other wholesale and production companies, the Allied Companies, operate in related areas, including electrical wholesaling, electronics and financial services. In more than 80 countries, the Group employs more than 83,000 employees in over 400 companies with more than 2,400 pick-up shops. According to preliminary annual financial statements, the Group generated consolidated sales of EUR 17.1 billion and an operating result before tax of EUR 1.2 billion in fiscal 2021 year.

The Advisory Board of the Würth Group, which consists of nine members, is the chief controlling body of the Würth Group. Bettina Würth has chaired the Advisory Board since March 2006.

About the Würth Group

The Würth Group is the global market leader in its core business: the sale and production of fastening and assembly materials. Other wholesale and production companies, the so-called Allied Companies, operate in related areas, including electrical wholesaling, electronics and financial services. More than 83,000 employees in over 400 companies operating over 2,400 branch offices and shops in more than 80 countries form part of the Würth Group. The Group achieved sales of EUR 14.4 billion in fiscal year 2020.

The background of the Vision 2045 campaign is the 100th anniversary the United Nations will celebrate in 2045. The principles laid down by the United Nations to promote prosperity and peace in the world, the so-called 17 Sustainable Development Goals, remain valid to this day. Vision 2045 focuses on companies that have successfully integrated these principles into their business models. During the event, representatives of the 45 companies selected will discuss their projects and objectives with respect to sustainability in panel discussions.

About the Würth Group

The Würth Group is the global market leader in its core business: the production of fastening and assembly materials. Other wholesale and production companies, the so-called Allied Companies, operate in related areas, including electrical wholesaling, electronics and financial services. More than 81,000 employees in 400 companies operating over 2,400 branch offices and shops in more than 80 countries form part of the Würth Group. The Group achieved sales of EUR 14.4 billion in fiscal year 2020.

Infrastructure is another essential criterion: Currently, there are 126 hydrogen fueling stations in Germany that the sales reps selected for this test have easy access to.

Two vehicles were handed over to the sales reps at the company headquarters in Künzelsau-Gaisbach this Wednesday.

Two Lexus UXE electric vehicles were also included in this test phase. The vehicles are provided by WELLERGRUPPE Holding SE & Co. KG, whose managing director, Burkhard Weller, is also a member of Würth’s Customer Advisory Board.

Changing over the company’s vehicle fleet to alternative fuel sources is just one of the measures Adolf Würth GmbH & Co. KG is taking to achieve its ambitious climate targets: The goal is to be carbon-neutral* at all German company sites by 2024. Adolf Würth GmbH & Co. KG will further install photovoltaic systems to fully utilize its internal power generation potential and improve its energy efficiency, source only green energy and compensate for unavoidable CO² emissions.

*Adolf Würth GmbH & Co. KG measures and identifies the direct and indirect generation of greenhouse gas emissions in accordance with the Greenhouse Gas Protocol. The Greenhouse Gas Protocol classifies a company’s direct and indirect emissions into three scopes:

• Scope 1: This scope includes all emissions from sources owned or controlled by a company, e.g. from its own establishments or vehicle fleet.
• Scope 2: This scope covers all indirect emissions from the generation and provision of purchased or acquired energy services from third parties. These energy services include electricity, heating and air conditioning technology consumed by the reporting company.
• Scope 3: This scope comprises those indirect emissions that occur through a company’s operations, but cannot be controlled directly by this company. Scope 3 includes emissions that occur in both upstream and downstream operations such as transport and distribution, commuting and business trips.

The carbon-neutral objectives of AW KG are based on direct emissions (Scope 1) and indirect emissions (Scope 2). While upstream and downstream emissions (Scope 3) will be analyzed and identified within the scope of the company’s carbon footprint analysis, but cannot be fully included in the company’s climate targets, as they cannot be controlled directly yet. Würth is working on achieving greater transparency, in order to make a positive contribution to the Paris Agreement through its holistic climate strategy at the parent company, but also in the Würth Group as a whole.

About Adolf Würth GmbH & Co. KG

Adolf Würth GmbH & Co. KG is the leading specialist for assembly and fastening materials for professional use. It is the largest individual company of the globally operating Würth Group. Adolf Würth GmbH & Co. KG employs more than 7,400 people nationwide, generating sales of EUR 2.21 billion in fiscal year 2020.

The month of April has been historic: The Würth Group achieved monthly sales of EUR 1.42 billion, which translates into year-over-year growth of 50.5 percent (adjusted growth: 47.6 percent).

Adolf Würth GmbH & Co. KG, the parent company and at the same time largest individual company in the Group, also did well: In the first half of 2021, it generated sales of EUR 1.25 billion including intra-Group sales (+17.9 percent).

Divisions Construction and Metal, business units Elektronik eiSos and Electrical Wholesale showing exceptional growth

Total sales in Divisions Metal and Construction improved by 22.0 percent over the previous year in the first half of 2021. The companies in business unit Electrical Wholesale reported strong growth of 32.3 percent. eiSos Group was equally successful, achieving growth of 34.1 percent.

Price increases for raw materials pose new challenges

Demand for semi-finished and finished goods has been ramping up rapidly since the end of 2020, resulting in production and supply bottlenecks and, consequently, in rising manufacturing and procurement costs. The problems within the supply chains further aggravate the situation: The COVID-19 outbreak at the South Chinese port Yantian is adding to the already substantial delivery delays.

Operating result

At EUR 520 million, the Würth Group’s operating result in the first half of 2021 is well above that of the previous year (2020: EUR 280 million). The outbreak of the COVID-19 pandemic at the beginning of 2020 put a considerable drag on the operating result in the second quarter of 2020. Strong sales growth across almost all business units combined with lower costs due to the COVID-19 pandemic (e.g. travel, conference and trade show costs) are now positively impacting the 2021 result.

Employees

The number of employees increased by 2,626, from 79,139 at the end of last year to 81,765 after the first half of 2021. In Germany, the number of employees amounts to 24,971. Around the world, the Würth Group employs more than 33,000 sales representatives in the field.

Sustainability: Installation of photovoltaic system

Adolf Würth GmbH & Co. KG plans to build photovoltaic systems on a total surface area of up to 28,000 square meters in the final construction stage on the campus in Künzelsau and the nearby central logistics hub in Gewerbepark Hohenlohe industrial park in 2022. These systems will fully utilize the internal energy generation potential on the existing roofs. Adolf Würth GmbH & Co. KG is planning to cover around 20 percent of its power needs on campus with internally generated electricity, e.g. for the charging infrastructure of the growing number of electric fleet vehicles.

Moderate outlook for the second half of the year

The Würth Group is currently expecting growth in the double-digit range, to a total sales volume of around EUR 16 billion, in fiscal year 2021, up from EUR 14.4 billion in 2020. While the economy has recovered in recent months, COVID infection rates are dropping as vaccinations go up, the economic research institute Ifo is warning against setbacks caused by the Delta variant.

About the Würth Group

The Würth is the global market leader in its core business, the sale of fastening and assembly materials. Other wholesale and production companies, the so-called Allied Companies, operate in related areas, including electrical wholesaling, electronics and financial services. More than 400 companies operating over 2,400 branch offices and shops in more than 80 countries form part of the Würth Group. The Group achieved sales of EUR 14.4 billion in fiscal year 2020.

AW KG has initiated extensive measures to achieve carbon-neutral operations at its company headquarters in Künzelsau-Gaisbach and all shops and offices across Germany: changing over to electromobility, improving energy efficiency by implementing an energy management system (DIN EN ISO 50001), expansion of in-house power generation, sourcing green energy, compensating for unavoidable CO² emissions.

AW KG plans to change over 50 percent of its packaging to recyclable solutions by 2025 and save an additional 20 percent of overall packaging material compared to 2020. The first projects have already been initiated: Together with a manufacturer of packaging materials, Würth has developed packaging solutions for machining tools that are made to 100 percent from post-consumer recycled plastics (PCR), i.e. from plastic waste recycled in Germany’s dual system for the recycling of packaging.

Electromobility: sustainable alternatives

The entire vehicle fleet will be changed over to battery electric drive before 2024. In the current transition phase, sales and inside staff can order electric vehicles on a voluntary basis. To facilitate this changeover, AW KG is greatly expanding the existing infrastructure: 200 charging points will be installed at the head office alone, with another 200 spread across Würth shops all over Germany. To gain more experience in the field of alternative drive systems, hydrogen vehicles are currently being tested as well.

Energy efficiency

In order to use electricity and heating as efficiently as possible, Würth is optimizing its energy management, integrating it into existing management systems. Certification is planned for 2022. Through more measuring points, the system will achieve greater transparency in energy consumption.

In-house power generation

Photovoltaic will help tap into the potentials offered by in-house power generation. The first plant is planned to open before the end of the year. Additional plants will follow, e.g. on the new innovation center (to be completed at the end of 2022). In the final project stage, AW KG is planning to reach a total surface area of 28,000 square meters. The remaining power needs will be covered through renewable energy sources. The head office has already been switched over completely to green energy. Remaining emissions could be reduced to zero. The remaining emissions from other sites that cannot be avoided or reduced in advance are compensated for by investments in environmental protection projects. Climate-friendly operations are the long-term goal.

Strong commitment to cultural and social projects

Social responsibility and commitment have always played a major role at Würth. More than 18,500 works of art from the Würth Collection are on display for the general public at five museums and ten associated galleries around Europe. Admission is free. In June 2020, Museum Würth 2 opened in the annex to the Carmen Würth Forum Cultural and Convention Center at the company’s head office in Künzelsau-Gaisbach. The Würth Foundation promotes projects in the fields arts and culture, science and research as well as training and education. The integration of people with disabilities is an initiative launched by Carmen Würth.

*Adolf Würth GmbH & Co. KG measures and identifies the direct and indirect generation of greenhouse gas emissions in accordance with the Greenhouse Gas Protocol. The Greenhouse Gas Protocol classifies a company’s direct and indirect emissions into three scopes:

• Scope 1: This scope includes all emissions from sources owned or controlled by a company, e.g. from its own establishments or vehicle fleet.
• Scope 2: This scope covers all indirect emissions from the generation and provision of purchased or acquired energy services from third parties. These energy services include, electricity, heating and air conditioning technology consumed by the reporting company.
• Scope 3: This scope comprises those indirect emissions that occur through a company’s operations, but cannot be controlled directly by this company. Scope 3 includes emissions that occur in both upstream and downstream operations such as transport and distribution, commuting and business trips.

The carbon-neutral objectives of AW KG are based on direct emissions (Scope 1) and indirect emissions (Scope 2). While upstream and downstream emissions (Scope 3) will be analyzed and identified within the scope of the company’s carbon footprint analysis, they cannot be fully included in the company’s climate targets, as they cannot be influenced directly yet. Würth is working on achieving greater transparency, in order to make a positive contribution to the Paris Agreement through its holistic climate strategy at the parent company, but also in the Würth Group as a whole.

About Adolf Würth GmbH & Co. KG

Adolf Würth GmbH & Co. KG is the leading specialist for assembly and fastening materials for professional use. It is the largest individual company of the globally operating Würth Group. Adolf Würth GmbH & Co. KG employs more than 7,400 people nationwide, generating sales of EUR 2.21 billion in fiscal year 2020.

The Group’s sales development in 2020 was driven by two decisive factors: The skilled trades, which Würth supplies with assembly and fastening materials in its core business, the Würth Line, were widely regarded as essential businesses and continued operating at a very high output. At the same time, the Würth Group’s multi-channel strategy offered customers the right solutions for contactless material procurement: The digitalization strategy in the shape of online shops, e-procurement solutions and Würth App perfectly rounds off sourcing from local Würth shops. E-business sales developed accordingly in 2020, rising by 5.8 percent to EUR 2.8 billion, with e-business sales now accounting for 19.3 percent of the Group’s overall sales volume.

“We had laid the groundwork well before the pandemic hit: Our customers are familiar with our digital ordering options, with the sales reps offering expert advice when needed. Our strategy has paid off: 100 percent flexibility in procurement, even in times of COVID restrictions,” explained Robert Friedmann, Chairman of the Central Managing Board of the Würth Group.

Growth despite COVID crisis

In Germany, the Würth Group closed the 2020 fiscal year with a sales plus of 2.9 percent. The pandemic’s impact on the individual industries supplied by the Würth Group varied greatly: Both the Construction Division (+12.2 percent) and the Electrical Wholesale unit in Germany (+10.8 percent) reported sales growth in the double digits. All units supplying the automotive and mechanical engineering industries, on the other hand, saw sales dwindle. Already faced with enormous pressure to help combat climate change, sales in the automotive industry collapsed in the wake of declining demand and weeks of production standstills. The mechanical engineering sector suffered as well. The Group’s companies outside Germany saw sales drop by 0.4 percent.

Adolf Würth GmbH & Co. KG, the largest company in the Group, showed a stable performance during the crisis: In the 2020 fiscal year, the company reported a sales plus of 7.4 percent. The potential of digital sales channels during the pandemic is reflected in the key figures: The websites of Adolf Würth GmbH & Co. KG register almost 1,000 search queries per minute. Customers log into the online shop and the Würth App almost one million times each month.

Group structure helps brave pandemic

The Group’s international orientation with more than 400 companies in more than 80 countries boosts its stability in times of crisis. The wide variety of different industries ensures the Group is not dependent on a single economic sector: In the Würth Line’s core business, the sale of assembly and fastening materials, Würth Group companies supply customers in the metalworking, automotive, industrial, woodworking and construction sectors. The Allied Companies operate in related industries such as electronics, electrical wholesaling or chemicals. This strategic position combined with the multi-channel strategy has turned out to be a major advantage during the pandemic.

Sustainability in logistics: The Würth Delivery Day

Logistics is one of the Würth Group’s main fields of expertise. To support customers with a high ordering frequency in making their inventory management more efficient and reliable, Adolf Würth GmbH & Co. KG is now offering the new “Würth Delivery Day”. Different individual orders of the same customer are consolidated into one fixed delivery date per week. The customer chooses the delivery date. This helps save up to 30 percent CO₂ emissions per customer.

“By the year 2024, Adolf Würth GmbH Co. & KG wants to be carbon-neutral and take on a pioneering role in the Group. Today, our shipments to customers are already carbon-neutral. We plan to establish a circular value chain by 2030, which is why we are already permanently working on sustainable ordering processes: including digital invoices as well as sustainable packaging and delivery systems,” Friedmann said.

Thanks to these services, the customers will benefit in several ways: They will have to handle less packaging and packing materials and need fewer deliveries, which automatically means less resources used and a smaller environmental impact. In addition, customers can better plan their personnel needs in line with their delivery schedules. This delivery model will be rolled out across all Würth Line companies.

“This example shows how much potential is available and what we can achieve if we rethink our processes. It is not only about achieving faster, but also more efficient processes. Sustainable practices are something that the skilled trades are asking for more and more,” Friedmann added about the new service offering.

Sustainable product packaging from recycled plastics

Together with our packaging manufacturer, Würth developed packaging solutions that are made to 100 percent from recycled plastics (PCR = post-consumer recycled plastics) for machining tools. This type of packaging is almost entirely carbon-neutral, consisting to 100 percent of recycled plastics. Even the labels are made entirely of recycled plastics and are applied with an environmentally safe adhesive. This made it possible to achieve Cradle to Cradle™ certification. The advantages of sustainable packaging: It protects the product very well, while requiring very little material. It is reusable and resistant to oil, grease and moisture. This changeover will save roughly 45 tons of new plastic every year, reducing CO₂ emissions for this product group by 77 percent.

“By the year 2025, Adolf Würth GmbH & Co. KG will have changed over 50 percent of its packaging to recyclable solutions and lowered its use of packaging materials by 20 percent compared to 2020,” Friedmann added.

Employees

The number of employees increased slightly from 78,686 to 79,139 employees. In Germany, the Würth Group employs 24,514 people, 0.7 percent more than last year, with 33,176 employees worldwide working in the sales force.

Equity secures jobs and guarantees independence

The Würth Group remains a reliable and financially stable partner: The Würth Group's equity climbed 6.6 percent to EUR 5.9 billion in the last fiscal year, which corresponds to an increase of EUR 366 million. Thus, the equity ratio amounted to 43.8 percent at the end of the year (2019: 44.0 percent). The rating agency Standard & Poor’s confirmed the Würth Group’s “A/outlook stable” rating in 2020, underlining the stability of the Würth Group’s business model.

Optimistic outlook

Projections by leading economic institutes are again more optimistic, even though the dynamically developing rate of infections does not allow for accurate forecasts yet. The Group needs to continue to generate organic growth: by always being there for its customers, being active on the market, expanding its sales capacities and not least by gaining new market share through high performance and financial stability. The figures reported at the beginning of 2021 show that Würth keeps doing well throughout the pandemic: In the first quarter, the Group reported a sales plus of 10.3 percent year over year.

In Germany, Würth Group sales grew by 7.2 percent in the first three months, while sales growth came out at 12.6 percent outside Germany. Adolf Würth GmbH & Co. KG also started well into the new year, achieving year-over-year sales growth of 11.0 percent in the first three months.

About the Würth Group

The Würth Group is the global market leader in its core business—the sale of fastening and assembly materials. It consists of more than 400 companies in over 80 countries with more than 80,000 employees on its payroll. Approximately 33,000 of those employees are salaried sales representatives.

In the Group's core business, the Würth Line, the sales program for the skilled trades and industry comprises more than 125,000 products: from screws, screw accessories and anchors to tools, technical chemicals and personal protective equipment.

The Allied Companies of the Würth Group, which operate in business areas related to its core business, round off the range by offering products for DIY stores, material for electrical installations, electronic components such as circuit boards, tools, and financial services. They account for more than 40 percent of the Würth Group’s sales volume.

With regard to the future growth of the company, the Supervisory Board and the Advisory Board of the Würth Group have decided to expand the Central Managing Board to five members. The Würth Line will be split up into the two units Craft and Industry. In the future, Würth Line Craft will be headed by Dr. Jan Allmann (37), with Rainer Bürkert (54) taking over Würth Line Industry. Both colleagues have been members of the Executive Board, the Würth Group’s operational management body.

About the Würth Group

The Würth Group is the global market leader in its core business—the sale of fastening and assembly materials. It consists of more than 400 companies in over 80 countries with more than 79,000 employees on its payroll. Approximately 33,000 of those employees are salaried sales representatives. According to the preliminary annual financial statements, the Würth Group reported a sales volume of EUR 14.41 billion in 2020.

In the Group's core business, the Würth Line, the sales program for the skilled trades and industry comprises more than 125,000 products: from screws, screw accessories and anchors to tools, technical chemicals and personal protective equipment. The Allied Companies round off the range by offering products for DIY stores, material for electrical installations, electronic components such as circuit boards and financial services. They account for around 40 percent of the Würth Group’s sales volume.

The Group has maintained its performance at a stable level by its multi-channel strategy, spreading risks through its international positioning and diversification across various business segments. The development of sales in 2020 reflects the different effects of the pandemic on individual sectors and markets: While the Construction Division (+12.3 percent) and also the German Electrical Wholesale Unit (+10.8 percent) performed very well with sales growth in the double-digit range, sales in the units that directly supply the automotive and mechanical engineering industries declined.

The Group continues to intensify its innovation strategy as planned also in times of crisis: The Innovation Center at the headquarters in Künzelsau is planned to open in 2022. The total amount invested comes to about EUR 70 million. State-of-the-art laboratories and workshops are being built on an area of 15,000 square meters.

E-business sales showed above-average growth of 5.8 percent, climbing to EUR 2.8 billion in 2020. This increased the share of this contact point in total Group sales by one percentage point to 19.3 percent. Due to contact restrictions and lockdowns, business has shifted increasingly to digital sales channels as a result of the COVID-19 crisis. Be it online shop, Würth App or e-procurement solutions: Thanks to the consistent pursuit of its digitization strategy and its financial stability, Würth remains a reliable partner and supplier to its customers even during the pandemic. E-business as part of the multi-channel strategy has once again gained in importance.

In Germany, the Würth Group succeeded in achieving growth of 2.8 percent, while Adolf Würth GmbH & Co. KG as parent company of the Group grew by 7.4 percent. Outside Germany, the Würth Group had to take a sales decline of 0.4 percent.

Operating result

According to preliminary calculations, the operating result of the Würth Group clearly remained at previous year’s level with EUR 770 million (2019: EUR 770 million).

Employees

In spite of the COVID-19 crisis, we did not reduce staff—on the contrary: The number of employees rose by 453, from 78,686 to a new high of 79,139 in 2020. In Germany, the number of employees amounts to 24,514, corresponding to an increase of 0.7 percent. The Group currently has 33,176 sales force employees on the payroll.

Outlook

The economic forecasts are cautiously optimistic. Also in the second lockdown, German economy is standing strong, but the volatile situation does not allow for a clear forecast. Friedmann is pinning his hopes on the global changes as a whole.

The Press Conference on the Annual Financial Statements of the Würth Group will take place on 6 May 2021.

About the Würth Group

The Würth Group is the global market leader in its core business—the sale of fastening and assembly materials. It consists of more than 400 companies in over 80 countries with more than 79,000 employees on its payroll. Over 33,000 of those employees are salaried sales representatives.

In the Group's core business, the Würth Line, the sales program for the skilled trades and industry comprises more than 125,000 products: from screws, screw accessories and anchors to tools, technical chemicals and personal protective equipment. The Allied Companies round off the range by offering products for DIY stores, material for electrical installations, electronic components such as circuit boards and financial services. They account for around 40 percent of the Würth Group’s sales volume.

The will sets the goal

Self-confidence and persistence made Adolf Würth reach his goal. It was not easy to procure goods in the occupation zones. It was hard to find rooms. Finally, a room could be found in an annex of Schlossmühle (castle mill) in Künzelsau: The globally operating Group saw the light of day in an area of just 170 square meters.

With a handcart on the path to success

The first screws were transported with a borrowed ox cart. Today, 90 trucks, 2,250 pallets, 49,000 parcels and 750 tons of ordered goods leave the loading area of Adolf Würth GmbH & Co every day just for customers in Germany.

The first sales trip took Reinhold Würth to Düsseldorf in 1951 and it was clearly pointing the way—out of the region and into the world. He returned with sales of around 2,000 German mark. His father did not show too much enthusiasm in view of this result. Behind closed doors, however, he said to his wife Alma: “Not too bad at all. Looks like this little scallywag got a sweet deal there!” a statement, which his mother did not pass on to Reinhold Würth until much later. “The five years of apprenticeship with my father were highly valuable for me,” Reinhold Würth says of the short time with his father today. In 1954, Adolf Würth passed away unexpectedly. At the age of just 19, Reinhold Würth took over the two-man business.

In 1962, Reinhold Würth set up the first company outside of Germany, in the Netherlands. Today, more than 400 companies in over 80 countries form part of the Würth family. “You have to look beyond the mountain and around the next corner,” has always been the motto of Reinhold Würth. Another milestone in the history of the company was structuring the Group into the divisions Metal, Automotive, Wood and Construction. Searching for solutions, recognizing opportunities, advancing courageously while assessing and taking risks was the maxim of the two Würth men. It still determines entrepreneurial decisions today.

The experiences at the end of the war and in the years of reconstruction have left a deep mark on Reinhold Würth. Not giving up, persevering, setting oneself concrete targets and visionary thinking mark his personality and thus the company’s character. It matters a lot to him to pass on these attitudes.

Change as a tradition for success and a bright future

The year 2019 was an anniversary year and a year of success for Adolf Würth GmbH & Co, the parent company of the Group: With 7,000 employees the company generated sales of over two billion euros. The Group as a whole achieved a new sales record of 14.3 billion euros and 78,000 employees worldwide contributed to this success.

From a dealer to a manufacturer—from direct selling to a multichannel strategy

Now as before, the partnership between Würth and its over 3.7 million customers is extremely strong. The direct contact is the decisive factor for the trustful cooperation. This is why around fifty percent of Würth’s employees work in the sales force, which is about 33,000 worldwide. They have their ears close to the market: Würth products have exactly what Würth customers need. The development of new products is directly influenced by the valuable expertise gained in workshops and at construction sites. A distributor’s brand becomes a manufacturer’s brand.

Würth considers the future and is a reliable partner for the trades and the industry: The potential of the multichannel strategy became obvious under the conditions of the coronavirus pandemic. All available channels were used to supply customers reliably with goods in spite of the contact restrictions. This shows how sensible it was to push the digitalization of processes and to establish over 2,000 shops in the course of the past years.

A strong set of values does not have to fear change

The corporate culture plays a major role at Würth. It is the all-embracing framework. This year, the company experienced first-hand how important values like reliability, predictability, honesty and above all a down-to-earth mentality are. These values, often seen as traditional values, have ensured the cohesion that carried and still carries the company through the current crisis.

Art and culture as connecting element

Domestic music has always been important for the Würth family. Alma Würth played the harmonium very well, Reinhold learned to play the violin and the family used to meet with good friends to sing together. In 1941, Reinhold Würth accompanied his parents on a business trip to Vienna. “The splendor of Schönbrunn Palace left quite an impression on me as a small boy,” he said. In the early 1970s, Reinhold Würth discovered his passion for the visual arts and started collecting art.

Today, the Würth Collection consists of over 18,300 pictures and sculptures spanning a period of about 500 years. The entrepreneur, however, did not only enjoy the works of art for himself. He started opening museums and galleries in 1991, thus opening the window to the arts for his employees as well. Every year, about 500,000 people visit the now 15 art venues in Europe, which are all open to the public. From time to time, individual loans or even complete exhibitions of the Würth Collection travel the world. In 2020, Museum Würth 2 opened its doors. It displays a permanent selection of works from the Würth Collection. The museum was designed by David Chipperfield Architects and forms part of the Carmen Würth Forum in Künzelsau. The museum annex also houses conference rooms for up to 700 persons. Since 2017, Carmen Würth Forum is also home to the orchestra Würth Philharmoniker and houses two halls for comprehensive cultural activities. Innumerable sponsoring activities in the arts, music and literature round off the immense cultural commitment of Würth.

Art enriches

“Dealing with the arts has incredibly enriched my life,” says Reinhold Würth. “It often showed me what else is possible in this world.” This is because art and culture breathe new life in your thinking and acting. Cultural activities are thus a reflection of permanent change. “This company would be dead if it was static,” is Reinhold Würth’s deep conviction. “It actually has to be reinvented every week without its roots being torn out and its history being forgotten.”

You can find pictures here:

Pictures

Museum Würth 2, featuring rooms with a height of more than five meters, provides ideal conditions for highlights of contemporary and modern art of the Würth Collection. The annex fulfils the wish of entrepreneur and collector Prof. Dr. h. c. mult. Reinhold Würth to create a space where the masterpieces of artists of the late 19th, the 20th and 21st century in the Würth Collection can be put on permanent display, similar to the permanent exhibition of the Old Masters of the Würth Collection at Johanniterkirche in Schwäbisch Hall. A frosted glass ceiling ensures subtle changes in illumination. The completely glassed belvedere of Museum Würth 2 opens out onto the Hohenlohe landscape and the spacious sculpture park around Carmen Würth Forum, displaying works by such internationally acclaimed sculptors as Niki de Saint Phalle all the way to Tony Cragg. The cabinet on the lower floor is reserved for smaller formats and light-sensitive works.

A leafy interior court, the adjacent museum shop and Café Atrium connect the museum and the conference area. The new conference area includes eleven rooms that can be connected to house up to 700 people. On top of the Great Hall suitable for events attended by up to 2,500 people, these meeting rooms are perfectly suited for smaller gatherings or large events with workshops and committee meetings organized in parallel to the main event.

Prof. Dr. h. c. mult. Reinhold Würth, Chairman of the Supervisory Board of the Würth Group's Family Trusts, called the official opening of Museum Würth 2 with an exhibition of the high points of the collection “a kind of a finale of my life’s mission, my life’s work.“ By now, the Würth Collection comprises about 18,300 works of art from about five centuries that the entrepreneur has put together in the course of almost fifty years. “Carmen Würth Forum constitutes a very unusual combination of art, culture and business which is precisely what makes it so special. Now, Carmen Würth Forum is the power center of the entire Würth Group.“ In 2020, the Würth Group looks back on 75 years of corporate history.

David Chipperfield said: “With the second construction stage, we will complete Carmen Würth Forum and implement Reinhold Würth’s vision of a building as a meeting place and gesture to the employees of Würth. It is a symbol of their community beyond the workplace and an interface between the company and the general public.”

When visiting Museum Würth 2 for the first time, Winfried Kretschmann, State Premier of Baden-Württemberg, said: “With Museum Würth 2, the Hohenlohe region – and with it all of Baden-Württemberg – gains a true gem, an aesthetic asset. Reinhold Würth’s inspiration as patron of the arts radiating far beyond the region is remarkable indeed and a blessing for Baden-Württemberg. His passion for art is sure to have benefited his professional life as well.”

C. Sylvia Weber, Director of the Würth Collection: “I am very happy that despite the turbulences also affecting cultural activities these past months, we managed to adhere to the schedule in setting up Museum 2. The collector’s vision enabled us to not simply put works of different genres, intentions and styles side by side, but to really bring them together. The affinities presented here such as Baselitz and Picasso, Munch and Hockney, Tamayo and Katz, Hartung and Antes were created by artists of different nationalities, languages and temperaments. In Museum 2, they found a common home in our collection."

Museum 2 will open with the exhibition “The Long View. Reinhold Würth and His Art Collection”, a distillation of about 150 outstanding contemporary and modern works of art. Visitors will encounter classic works of the Würth Collection by Georg Baselitz, Max Beckmann, Max Ernst, David Hockney, Anish Kapoor, Anselm Kiefer, Ernst Ludwig Kirchner, Robert Longo, Pablo

Picasso and Gerhard Richter. Also on 28 June, the Museum Würth 2 app will be available in both German and English in the app stores.

About the Würth Group

The Würth Group is the global market leader in its core business—the sale of fastening and assembly materials. It currently consists of more than 400 companies in over 80 countries with roughly 78,500 employees on its payroll. Approximately 34,000 of them are salaried sales representatives. In the fiscal year 2019, the Würth Group generated EUR 14.3 billion in sales.

About the Würth Collection

The Würth Collection comprises about 18,300 works from the 15th century to modern and contemporary art, primarily paintings and sculptures. It ranks among the greatest European private art collections. The works of art are regularly put on display for the public in 15 museums and associated galleries of the Würth Group across Europe, admission is free. Activities of the Würth Collection are borne by the Würth national companies.

For a fact sheet and photos please visit our website www.wuerth.com/carmenwuerthforum

The bond was issued in cooperation with the joint lead managers BNP Paribas, DZ Bank, HSBC and Landesbank Baden-Württemberg. After its announcement and the positive market response—the bond was three times oversubscribed—the transaction could be concluded within just a few hours. Investors may look forward to a yield to maturity of 0.782 percent p.a.

The proceeds of the issue strengthen the Würth Group's long-term funding and liquidity basis for further growth of the Group. The average term of the outstanding financial liabilities of the Würth Group has been extended considerably.

About the Würth Group

The Würth Group is the global market leader in its core business—the sale of fastening and assembly materials. It currently consists of more than 400 companies in over 80 countries with about 78,500 employees on its payroll. Approximately 34,000 of them are salaried sales representatives.

In the Group's core business, the Würth Line, the sales program for the skilled trades and industry comprises more than 125,000 products: from screws, screw accessories and anchors to tools, technical chemicals and personal protective equipment. The Allied Companies of the Würth Group, which operate in business areas related to its core business, round off the range by offering products for DIY stores, material for electrical installations, electronic components such as circuit boards, tools, and financial services. They account for more than 40 percent of the Würth Group’s sales volume.

Legal disclaimer:

This press information neither constitutes an offer for sale nor a solicitation of an offer to purchase securities nor an invitation to otherwise purchase securities. It does furthermore not create the basis for a contract on the purchase or subscription of securities. This press release neither constitutes an offer for sale nor a solicitation of an offer addressed to any person in any jurisdiction where it is unlawful for such an offer or solicitation to be addressed.

Securities may be offered or sold in the United States of America only after prior registration or without prior registration pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933 (“Securities Act”), as in effect at any given time. The securities referred to in this press release have not been nor will they be registered under the Securities Act. There has not been nor will there be a public offering of the securities referred to in this press release in the United States of America.

Potential investors are requested to make their investment decisions regarding the securities referred to in this press release solely based on the information provided in the prospectus as approved and published by the Commission de Surveillance du Secteur Financier, Luxemburg (“CSSF”). The prospectus will be published by Würth Finance International B.V. on the website www.wuerthfinance.net.

While the outbreak of the coronavirus pandemic has slowed the development of the Group overall, the Würth Group considers itself on the right track: In accumulated terms, the Würth Group reported sales growth of 2.8 percent as of March 2020.

Würth Group companies in countries heavily affected by the COVID-19 disease such as Italy, France and Spain have felt the effects. Still: Würth France managed to grow its e-business activities by 29.1 percent in the first quarter of 2020 despite the extensive lockdown restrictions in place, Würth Italy reported almost 30 percent growth as well, while Würth Austria and other companies of the Würth Group doubled their Click & Collect orders (orders via app or phone and pick-up from the parcel stations outside the Würth shops). The lockdown, which has been in place almost all over Europe, has resulted in almost no delivery bottlenecks at Würth.

In Germany, the Würth Group was well prepared to meet the crisis and suffered only minor setbacks. The German Electrical Wholesale Unit even reported sales growth of 9.2 percent in the first quarter of 2020. Only companies operating in industries close or related to the automotive industry had to resort to short-time work.

Sales at Adolf Würth GmbH & Co. KG have been developing very well against the current backdrop, as tradespeople were able to continue their work almost unaffected. Adolf Würth GmbH & Co. KG reported a sales plus of 7.6 percent in the first quarter of 2020. The Group’s parent company used its multi-channel offering to ensure supply security for its customers at all times.

Multi-channel strategy effective during lockdown

Würth’s multi-channel sales organization is based on the personal contact with the customer through the sales force and the shops – there are more than 530 shops in Germany alone and more than 2,200 worldwide – and online channels such as the online shop, the Würth App and e-procurement solutions.

The digital sales channels have gained greatly in importance during the crisis. The website of Adolf Würth GmbH & Co. KG, for instance, handles around 700 search queries per minute and around 400,000 customers log into the online shop and the Würth App each month. In March, when the coronavirus crisis started in Germany, e-business sales at Adolf Würth GmbH & Co. KG jumped 27 percent. These online tools are also used more and more as information channels: Customers are always up-to-date on product availability and the availability of the sales force and shops thanks to email-newsletters, social media and the website.

Security factor liquidity

The Würth Group remains financially stable: The Würth Group's equity climbed 7.4 percent to EUR 5,554 million in the last fiscal year, which corresponds to an increase of EUR 382 million. Thus, the equity ratio amounted to 44.0 percent at the end of the year (2018: 47.1 percent). The rating agency Standard & Poor’s once again confirmed the Würth Group’s “A/outlook stable” rating in 2019. Securing the Würth Group’s liquidity is a top priority in these uncertain times. As of the end of April 2020, the Würth Group’s liquidity reserves amount to more than EUR 800 million, including more than EUR 400 million in cash assets and the committed unused credit line of EUR 400 million running until July 2023.

2019 annual financial statements

The Würth Group reported a new sales record in 2019: The global market leader in the sale of assembly and fastening materials generated sales of EUR 14.3 billion (previous year: EUR 13.6 billion) and growth of 4.8 percent.

Despite the slowing development of the Würth Group in Germany (+2.2 percent), which is driven by the recent cooldown in the automotive industry, sales continued to develop positively thanks to multi-channel activities in the e-business channel: E-business sales experienced above-average growth and amounted to EUR 2.6 billion, pushing the share of e-business activities in total Group sales to 18.3 percent.

Operating result

The operating result was down on the previous year at EUR 770 million (2018: EUR 870 million). The pressure on the gross margin is one of the factors driving this development. It was not possible to pass rising purchase prices on to customers on the market. Other influencing factors were additional investments into the companies’ business models and the introduction of IFRS 16.

Employees

The number of employees was stepped up by 1,606, from 77,080 to 78,686 in 2019, which equals an increase by 2.1 percent. In Germany, the Group has 24,344 employees overall, up 2.4 percent over last year. In the field, the Group employs 33,979 sales representatives across the world (2018: 33,218). A total 996 employees were added through acquisitions.

75 years of Würth

In 2019, Adolf Würth GmbH & Co. KG generated sales of EUR 2,094 million (including intra-group sales) with its 7,418 employees, reaching another historic milestone in the company’s history: more than two billion euros in sales. This was good news on a special occasion, as the first company of the Group, and thus the entire Würth Group, is celebrating its 75th anniversary in 2020.

Investments

The Würth Group’s investment volume of EUR 705 million in 2019 was geared towards the expansion of the IT infrastructure and warehouse capacities for our distribution companies, and an improvement of production facilities, technical equipment and machinery for our manufacturing companies. In 2019, the Würth Group again financed all its investments from its operating cash flow.

Prepared for the future

In its 75-year history, the Group has never been exposed to a crisis of this magnitude. The COVID-19 pandemic is having a grave impact on the entire global economy. The currently very volatile economic situation across the world does not allow for any reliable forecasts for 2020. The Group is expecting to maintain its performance on a stable level, helped by its multi-channel strategy and its diversification of risk through its international footprint and diverse business models.

Top-quality logistics

With its new warehouse directly next to the A6 highway in the Gewerbepark Hohenlohe industrial park close to the company’s headquarters, Adolf Würth GmbH & Co. KG has created a main transshipment base—a collection point and hub—to consolidate and coordinate flows of goods throughout Europe. Roughly 20 percent of all orders handled by the new warehouse will go directly to European countries outside Germany: stocking up the warehouses of other Würth companies or shipping orders directly to end customers abroad. With this hub, the Group is pushing its logistics performance to the next level. Around 300 employees will work in two shifts in the new logistics complex.

Innovation strategy: from a distributor to a manufacturer

For the future, the Group is banking on its new innovation strategy: the transition from a distributor to a manufacturer. Always having the ear close to the market and the customers: Through the extensive network of sales reps and shops, Würth can incorporate the expertise of the skilled trades directly into its product R&D. Over the past 12 months, research and development capacities at the Künzelsau campus—the Group’s headquarters—could be expanded significantly and new jobs created. The company is tapping into new fields of expertise with new mechatronics labs and testing facilities.

Investments in the Group’s manufacturing expertise and other innovation projects at the current R&D site will continue to go forward, even though the completion of the new innovation center will be slightly delayed due to the current situation. Once complete, the innovation center will accommodate around 250 employees. Development teams from the fields of mechatronics, fastening systems, tools, technical chemicals and power tools are already working on making the innovation strategy a reality: employees of the research and development department of Adolf Würth GmbH & Co. KG collaborate with Group companies that operate in the manufacturing sector, as well as external researchers. The cooperation with Karlsruhe Institute of Technology KIT and the universities of Innsbruck and Stuttgart will create a cluster of knowledge and expertise.

About the Würth Group

The Würth Group is the global market leader in its core business—the sale of fastening and assembly materials. It consists of more than 400 companies in over 80 countries with approximately 79,000 employees on its payroll. Approximately 34,000 of those employees are salaried sales representatives.

In the Group's core business, the Würth Line, the sales program for the skilled trades and industry comprises more than 125,000 products: from screws, screw accessories and anchors to tools, technical chemicals and personal protective equipment. The Allied Companies of the Würth Group, which operate in business areas related to its core business, round off the range by offering products for DIY stores, material for electrical installations, electronic components such as circuit boards, tools, and financial services. They account for more than 40 percent of the Würth Group’s sales volume.

Sales developed in an unusually heterogeneous way in 2019. The different development of both the individual regions and individual business units of the Group reflects this. In Germany, sales growth was rather modest, at a rate of 2.1 percent. This is above all due to the struggling automotive industry. The development of business units such as the Würth Elektronik Group or manufacturing and tool trading companies, all serving to customers in this industry, was affected as a result. These units reported declining sales in 2019. Contrary to that, Adolf Würth GmbH & Co. KG, parent company of the Würth Group and German sales organization of the Würth Line, was able to report growth of 5.8 percent.

The Group achieved sales growth of 6.8 % outside of Germany. Satisfactory growth rates were achieved in Southern Europe (15.3 percent; 4.9 percent if adjusted for acquisitions), South America (8.0 percent) and Eastern Europe (6.6 percent).

The Electrical Wholesale companies even grew at double-digit rates, in part thanks to the acquisition of Grupo Electro Stocks S.L.U., a leading Spanish electrical wholesaler, in 2019.

E-business sales experienced above-average growth and amounted to EUR 2.6 billion in 2019, thus increasing their share in overall Group sales to 18.3 percent.

Operating result

According to preliminary figures, the operating result of the Würth Group amounts to EUR 750 million, and is thus 13.8 percent below the previous year (2018: EUR 870 million). This decline is mainly due to the gross profit margins being under pressure. It was not possible to entirely pass on increased purchasing prices to customers in the market. Furthermore, the Würth Group continued to invest in the expansion of its business model and growth initiatives.

Employees

The number of employees rose by 1,606, from 77,080 to 78,686 in 2019. In Germany, the number of employees amounts to 24,344 corresponding to an increase of 2.4 percent. The Group currently has 33,979 sales force employees on the payroll.

Milestone achieved at Adolf Würth GmbH & Co. KG: EUR 2 billion in sales.

Adolf Würth GmbH & Co. KG, established in 1945, reports a sales record of more than EUR 2 billion. In 2019, the Group's parent company generated a sales volume of EUR 2.09 billion. “There’s no better motivation for our anniversary year in 2020: Adolf Würth GmbH & Co. KG will have its 75th company anniversary and Professor Würth will turn 85—what a magnificent present!” says Norbert Heckmann, Chairman of the Management of Adolf Würth GmbH & Co. KG, who is delighted by this milestone.

Outlook

“The general economic forecasts remain cautious, which is why the Würth Group expects mid-single-digit sales growth and an operating result increasing proportionally to this,” says Robert Friedmann, Chairman of the Central Managing Board of the Würth Group, explaining the expectations for the new business year. “Certainly, any political tensions and tariff disputes are disruptive factors, as they have strong repercussions on foreign trade and thus exports. This is where we have to pool our forces to still be able to grow despite these adverse conditions.”

The next press conference on the Würth Group’s annual financial statement will be held at Kunsthalle Würth in Schwäbisch Hall on 7 May 2020.

„Würth Industry has strong growth targets, both organically and through key acquisitions. This investment represents an important strategic opportunity to offer better supply chain solutions and cost savings for manufacturers across North America,” said Dan Hill, Chief Executive Officer for Würth Industry North America.

„Fasco Fastener adds to our capacity and geographic presence to better service our customers, said Keith Brantley, Managing Director of Marine Fasteners, headquartered in Sanford, Fl. „Fasco complements our overall stainless steel, brass, and silicone bronze fastener offering so we both can now provide a larger product selection to the marine, solar, and the general manufacturing industry.”

„We are excited to partner with Würth because it not only maintains Fasco’s history of outstanding quality, excellent service, but also enhances our offering to our customers. The Fasco brand name will continue as a division of Marine Fasteners, and our customers will continue to receive the same high quality packaging that they are used to. The acquisition will be good for both our customers and employees, and we are proud to be part of the Würth family”, said Scott Miller, Controller and Co-owner of Fasco Fastener.

About Würth Industry North America

Würth Industry North America (WINA) is a $1 Billion division of the Würth Group, the world’s largest fastener distribution company. WINA is a strategically aligned collective of companies: Würth Adams, Würth Des Moines Bolt, Würth House of Threads, Würth Industry Canada, Würth Industry de Mexico, Würth Revcar, Würth Service Supply, Würth Snider, Würth Timberline, Marine Fasteners, Northern Safety & Industrial, Würth. Van Horn, and Weinstock Bros., consisting of more than 110 locations across North America. Through the pairing of more than 420,000 parts with a myriad of services, WINA provides custom solutions for almost every industry. Würth products and services include engineering assistance, quality control, inventory management, vending, safety supplies, kitting and assembly, structural fasteners and MRO/industrial supplies. In addition, WINA systems ensure security and quality control through superior supply chain management. For more information on Würth Industry North America, go to wurthindustry.com.

A life for the company

In 1949, Reinhold Würth began a commercial apprenticeship in his father’s screw wholesale business at the request of his father. If his mother had had her way, he would have become a teacher.

He helped build the business from scratch, watched and copied his father, learned the ropes. His sales training consisted in the trips the two made to their customers. Then came the year 1954: Adolf Würth passed away unexpectedly from a sudden heart failure. At the age of 19, Reinhold Würth turned from an employee into a managing director.

A life for success

He loves selling, loves dealing with people. Curiosity drives him. He says about himself: "I always wanted to know what’s behind the mountain and around the next corner.” That is why he was one of the first entrepreneurs to venture abroad.

In 1962, he already established the first international subsidiary in the Netherlands - a decisive step for the company’s further success. His daughter Bettina Würth, Chairwoman of the Advisory Board of the Würth Group, describes the company’s success as follows: “For my father, it has always been and still is important to create a sound basis and maintain it in long term.”

Today, the Würth Group’s more than 400 companies operate in more than 80 countries around the world and employ more than 77,000 people. Reinhold Würth is certain: “Screws and fasteners, that’s like beer and buns. You’ll always need them.”

A life based on principles and values

“You spend most time in your life at work.” Right from the beginning, this fact has been a credo for Reinhold Würth, driving him to put the employee’s well-being at the center of the corporate culture. His culture is based on a strong sense of community. It is based on values like reliability, straightforwardness, honesty and treating each other with respect. And he deems the word “thank-you” the most important word in our dealings with each other. Working with people in partnership and on an equal footing was critical to the company’s success, not only inside the company, but to the customers in the outside world as well.

A life for art and culture

Art and culture are an integral part of the Würth Group. Reinhold Würth laid the foundations for the Würth Collection at the beginning of the 70s: He bought the paining “Cloud Reflection in the Marsh” by Emil Nolde. Today, the Würth Collection with over 18,000 works of art is among Europe’s largest private art collections. As a lover of classical music, Reinhold Würth wants to share his passion with and give something back to his home region that he still feels strongly connected to. Since 2017, the Würth Philharmoniker orchestra has been an integral part of the cultural program offered to both employees and the general public.

Electrical wholesaling surpassing Group growth

At 13.8 percent, the Electrical Wholesale Unit reported the strongest growth among all units of the Group, which is partly attributable to acquisitions made. In June 2019, Würth’s Electrical Wholesale Unit signed a contract to acquire Grupo Electro Stocks S.L.U. (GES), one of the leading electrical wholesalers in Spain reporting a sales volume of EUR 261.5 million in 2018. The transaction is subject to the approval of the anti-trust authorities. Organic growth of the business unit came to 6.5 percent.

Adolf Würth GmbH & Co. KG, the parent company and at the same time the largest company of the Würth Group, generated sales of EUR 1,035 million in the first half of 2019 (+ 6.6 percent). The company is firmly convinced to surpass the EUR 2 billion mark in 2019.

Operating result

At EUR 340 million at the end of the first half of 2019, the operating result of the Würth Group is down on the previous year (2018: EUR 400 million). “Our gross profit margin has come under pressure: We cannot fully pass rising purchasing prices on to our customers in the market,” Robert Friedmann explained the declining result. “In addition, our continued high investments in the expansion of our business units have an impact on the result, yet they are a means to prepare the ground for future growth. Nonetheless, we expect to close the financial year 2019 reporting an operating result comparable to last year’s.” In 2018, the Würth Group’s operating result amounted to EUR 870 million.

Employees

The number of employees increased by 747, from 77,080 at the end of 2018 to 77,827 in the first half of 2019. In Germany, the number of employees amounts to 24,044, increasing by 3.2 percent on the previous year. The Group currently has 33,585 sales force employees on the payroll.

Based on the strong appreciation of local entrepreneurship, Würth Electrical Wholesale Group is comprised of companies, which are leading regional or national players. The individuality of each company is underlined by the fact that each of these companies operates under its own brand. These companies benefit from their ability to draw on central resources and join hands for projects wherever that promises to be advantageous. Ulrich Liedtke, Executive Vice President of Würth Electrical Wholesale Group and responsible for the business in seven European countries, comments: “Hence, we do not foresee any changes in the way GES is operating in its market. We are very glad to continue in the direction of the growth strategy, which the management team of GES and Apax Partners have successfully laid out and implemented. Therefore, we are also very grateful that the management team of GES, under the proven leadership of its CEO Ricard Vilella, has opted to continue in their respective roles. We look forward to welcoming the entire team of GES to the family of the Würth Group, once approval of the antitrust authorities has been obtained.”

Grupo Electro Stocks S.L.U. is active in the distribution of electrical, automation, climate control and plumbing material. The company was founded in Barcelona in the year 1981. Since then, it has developed to become one of the leaders in its sector. At present, it maintains a wide presence throughout the Spanish geography through its three commercial brands Electro-Stocks, Kilovatio and Fluid-Stocks. More than 900 employees serve customers every day through 69 points of sale, distributed across 30 provinces, representing 80 percent of the total accessible market.

The Würth Group’s Electrical Wholesale Business Unit, which is one of the leading electrical wholesalers on the continental European market, is headed by Executive Vice Presidents Ulrich Liedtke and Uwe Schaffitzel. They are responsible for the unit’s operations in Central and Eastern Europe and Germany, respectively. In 2018, Würth Electrical Wholesale Group reported revenues of approximately EUR 1.7 billion overall and EUR 1.2 billion in Germany, achieving 13 percent sales growth on the previous year (incl. acquisition effects). This sales volume accounts for more than 12 percent of total sales of the Würth Group.

The year 2018 has been another record year for the Würth Group: Sales grew by 7.1 percent to EUR 13.6 billion (2017: EUR 12.7 billion), currency-adjusted growth came out at 8.6 percent. The operating result increased disproportionately compared to sales, reaching a total of EUR 870 million. The Group is expecting moderate single-digit sales growth in the current fiscal year. In accumulated terms, the Würth Group reported sales growth of 7.1 percent as of April 2019.

Operating result

The operating result of EUR 870 million (2017: EUR 780 million) is the highest in the Group’s history. In 2018, the rate of return improved to 6.4 percent (2017: 6.1 percent). On the one hand, this improvement can be attributed to internal productivity increases, further bolstered by the good economic conditions. On the other hand, it reflects the company’s focus on the expansion of its multi-channel strategy. Based on the latest economic forecasts, the Group is not expecting the great economic development of 2018 to continue on the same level in 2019. “The continuing trade and tariff wars, the insecurities caused by Brexit—there are many issues that are putting a drag on global growth dynamics. Assuming there will be no major turmoil, we are still expecting satisfactory growth rates in 2019,” states Robert Friedmann, Chairman of the Central Managing Board, with regard to the current fiscal year.

Employees

The number of employees was stepped up by 2,921, from 74,159 to 77,080, in 2018, which equals an increase by 3.9 percent. In Germany, the Group has 23,772 employees overall, up 5.1 percent over last year. In the field service, the Group employs 33,218 sales representatives across the world (2017: 32,295). A total 330 employees were added through acquisitions.

Germany remains most profitable region

Among the different regions, it was especially the regions of Southern and Eastern Europe that reported strong sales growth of more than 10 percent, which was mainly driven by the companies of the Würth Line. The Würth Line companies in Spain and Italy reported particularly remarkable results at 11.2 percent and 15.7 percent sales growth, respectively. “Our corporate strategy is based on the ambition of striving for double-digit growth rates,” explains Robert Friedmann, who is very satisfied with these results. “I am especially happy for these companies, as they have emerged from the economic crisis and worked their way back to success.”

Germany continues to be the most important single market for the Group: Sales in Germany, which account for 42.4 percent of overall sales, grew by 7.0 percent to EUR 5.8 billion (2017: EUR 5.4 billion). Germany is also the most profitable region for the Group: EUR 436 million of the Group’s operating result were generated in Germany (2017: EUR 421 million). The Group’s sales outside Germany improved by 7.1 percent to EUR 7.8 billion.

Adolf Würth GmbH & Co. KG’s 7,160 employees achieved sales of EUR 1.7 billion in 2018, outpacing the Group average with a plus of 9.0 percent. This development is a prerequisite for the Group’s investments in forward-looking distribution, logistics and product solutions. The construction of a new transshipment depot directly next to the German A6 highway is just one of the latest examples.

Research and development at the highest level: solution to prevent mobility collapse

In March 2019, the Würth Group celebrated the groundbreaking for its new innovation center at the parent company's location in Künzelsau. Adolf Würth GmbH & Co. KG is investing around EUR 70 million to create state-of-the-art laboratories and workshops equipped with the latest 3D printers, among others, on a total surface area of approximately 15,000 sq. m. A climate chamber and a certified anchor test lab will allow the Group to conduct its own approval tests.

Research will focus on fasteners for earthquake-prone regions or the reinforcement of existing structures such as bridges and tunnels. Pressing problems such as the looming mobility collapse caused by lengthy restoration works on bridges and tunnels are tackled head-on to develop practical solutions. Today, the Würth Group already has developed concrete screws that can be installed at great depths to replace missing or damaged reinforcements to extend the service life of otherwise dilapidated structures. The new innovation center will provide numerous new research opportunities in this field.

Approximately 250 people will be working in the innovation center to implement ideas and make them fit for the future: employees of the research and development department of Adolf Würth GmbH & Co. KG and from Group companies that operate in the manufacturing sector, as well as external researchers. The cooperation with Karlsruhe Institute of Technology KIT and the universities of Innsbruck and Stuttgart will create a cluster of knowledge and know-how.

From a distributor to a manufacturer—created from the ideas of tradespeople, developed by Würth

Würth’s high product quality has always been its core competence because it always focuses on the needs of professional tradespeople. The close contact and direct partnership between them and Würth’s sales force has always given Adolf Würth GmbH & Co. KG a clear view of the customer’s experiences in their daily use of Würth products. In 2018, this feedback from the skilled trades and the industry that Würth collects in its more than 40.000 customer contacts per day have resulted in the company implementing its first cordless power tool range based on a powerful Würth-owned battery system under the heading WÜRTH MASTER. FULL POWER. FULL SERVICE. The cordless drill driver ABS 18 COMPACT is the first power tool of this product range. A new angle grinder was added in April 2019. By the end of 2020, customers will be able to choose from a full 12V and 18V product range based on the new battery system.

Investments

The Würth Group’s investment volume of EUR 635 million in 2018 was geared towards the expansion of the IT infrastructure and warehouse capacities for our distribution companies, and an improvement of production facilities, technical equipment and machinery for our manufacturing companies. In 2018, the Würth Group again financed all its investments from its operating cash flow.

Continued financial stability

The Würth Group's equity climbed by 8.2 percent to EUR 5,172 million in the last fiscal year, which corresponds to an increase of EUR 393 million. Thus, the equity ratio amounted to 47.1 percent at the end of the year (2017: 46.5 percent). The rating agency Standard & Poor’s once again confirmed the Würth Group’s “A/outlook stable” rating in 2018.

Decisive factors were ecological aspects on the one hand (low emissions in general, reduction of CO2 emission, use of regional, renewable energies) and economic aspects on the other hand (fair, long-term prices, no maintenance costs, little space required, practically no maintenance required).

Würth International AG is the second company having received the VBSA/GEVAG certificate. “We are committed to active protection of the environment. Therefore, we are very happy to present this certificate to Würth. We know Würth to be an innovative and future-oriented company—also in terms of efficient use of energy and sustainable thinking,” François Boone, Managing Director of GEVAG said.

About Würth International AG

Würth International AG was founded in Chur, Switzerland, in 1964 to manage the Würth Group’s central purchasing and shareholdings. The field of shareholdings includes the foundation, the support and the administration of Würth companies outside Germany. Central purchasing includes procurement of the Würth product range consisting of more than 125,000 products from the field of assembly and fastening technology. Würth International handles the purchase of goods for all Würth companies (outside Germany) worldwide. The locations in Chur (Europe), Shanghai and Singapore (Asia) and Ramsey, NJ, (Americas) serve as hubs for the network of relationships between customers and suppliers.

To guarantee optimum supply to the Würth companies, there are two warehouses in Europe: Lagerhaus Landquart AG in Landquart, Switzerland (product focus on tools and assembly material), and Würth International s.r.o. in Bratislava/Slovakia (product focus on DIN and standard parts, assortments).

Operating result

According to preliminary calculations, the operating result of the Würth Group is between EUR 860 and 880 million, which is a new record and a clear increase over the previous year (2017: EUR 780 million). “We are highly pleased about this positive result. It provides proof of the fact that thanks to our strategies and services we are still an important partner for our customers in trade and industry,” explains Robert Friedmann, Chairman of the Central Managing Board of the Würth Group. E-business sales in 2018 amounted to EUR 2.4 billion and grew at above-average proportions compared to Group sales.

Employees

The number of employees increased by 2,921 from 74,159 to 77,080 in 2018. In Germany, the number of employees amounts to 23,772 corresponding to an increase by 5.1 percent. The Group currently has 33,218 sales force employees on the payroll.

Outlook

The Würth Group expects sales growth in the moderate single-digit range as well as a proportionately rising operating result in 2019. “Due to an economic slowdown, the year 2019 will certainly become a bigger challenge than 2018. Nevertheless, there is still no cause for concern, as the company is based on stable ground,” says Friedmann about the expectations for the new business year.

The next press conference on the Würth Group’s annual financial statement will be held at Kunsthalle Würth in Schwäbisch Hall on 8 May 2019.

About the Würth Group

The Würth Group is the global market leader in its core business – the sale of fastening and assembly materials. It currently consists of more than 400 companies in over 80 countries with more than 77,000 employees on its payroll. Approximately 33,000 of those employees are salaried sales representatives.

In the Group’s core business, the Würth Line, the sales program for the trades and industry comprises more than 125,000 products: from screws, screw accessories and anchors to tools, technical chemicals and personal protective equipment.

The Allied Companies of the Würth Group, which either operate in business areas related to its core business or in diversified business areas, round off the range by offering products for DIY stores, material for electrical installations, electronic components such as circuit boards, and financial services. They generate approximately 40 percent of the Würth Group’s sales volume.

The hotel restaurant can accommodate up to 120 people, always serving freshly prepared regional and international delicacies. Another 34 seats await the guests at the adjacent vinoteque. The hotel’s culinary events are particularly popular, including the Sunday and Holiday Brunch, with childcare services available on selected dates, as well as the candlelight dinner. The hotel bar The View can accommodate an additional 40 guests.

The Würth Panofit Parcours is another highlight: newly laid out at Panoramahotel Waldenburg, the Panofit Parcours is a state-of-the-art exercise trail providing high-quality fitness equipment and selected physical exercises spread along a running trail of 3.5 kilometers. It was designed by Sport- and Physioschule Waldenburg. Additionally, the hotel is the perfect starting point for bike, motorcycle and hiking excursions.

“The old and the new complement each other in the uniqueness of their architectural styles that were predominant at the time of their inception,” Markus Knobel, mayor of Waldenburg, praised the new hotel in his speech, referring to the hotel as “another landmark and characteristic feature on the terrace of Hohenlohe.”

The new building has a total interior space of 36,000 m². Construction works began with the two basement levels, which are partly integrated into the bedrock. The restaurant and meeting rooms are located on the street level. The rooms and suites are located in three separate wings positioned on top of the street level and linked by glass structures.

“The highly motivated and committed team of hotel director Schörner has been looking forward to this new building for a long time. And there is hardly a better location with a better view that would justify the name Panorama more than this one,” said an excited architect Thomas Müller who thanked everyone “who contributed to making this wonderful hotel complex happen in such a difficult construction scenario.”

“The new hotel is a modern four-star hotel that offers a whole range of new possibilities. Panoramahotel Waldenburg is not only characterized by its unequaled view. What is even more important—and there is no doubt about this—are the employees. Their warmth, their reliability and creativity is what makes Panoramahotel the Panoramahotel Waldenburg,” hotel director Dirk-Uwe Schörner praised his co-workers.

Bernd Herrmann, the Member of the Würth Group’s Central Managing Board responsible for the new building, said: “Guests can expect an elegant new hotel building that still has the same friendly and professional staff, the same great cuisine and many modern conference rooms,” Prof. Reinhold Würth, Chairman of the Supervisory Board of the Würth Group’s Family Trusts, explained in his welcome speech. He hopes that the hotel’s wonderful location with its great view will attract many tourists as well.

Adolf Würth GmbH & Co. KG, the Würth Group’s parent company, reported a new monthly sales record of more than EUR 150 million in June. In the first six months of 2018, the largest single company of the Würth Group generated sales of EUR 811 million.

Operating result

The Würth Group’s operating result improved by 19.4 percent to EUR 400 million in the first half of the year. “We are satisfied with this above-average increase in profits,” Robert Friedmann explains.

Investments in logistics

In June, Adolf Würth GmbH & Co. KG celebrated the groundbreaking for its new freight hub in the Gewerbepark Hohenlohe industrial area directly next to the A 6 highway – an investment in the company’s continued growth. The objective is to avoid split deliveries and consolidate individual order items to make sure customers receive only one shipment in the future. Apart from the high quality of its products, Adolf Würth GmbH & Co. KG will continue to develop its range of services to expand the partnership with its customers even further. Around EUR 73 million will be invested in the new European transport hub that will be erected on a surface area of around 50,000 m² – 20 percent of all orders handled there will be shipped directly to other European countries.

Two years after opening its highly modern logistics center and sample factory, Würth Elektronik eiSos is investing another EUR 25 million in its site in Waldenburg. The company’s existing storage, picking and logistics spaces will be doubled with the construction of 4,000 m² of logistics area and a 1,300 m² fully automated shuttle warehouse. This latest addition underlines the ambitious service claim of Würth Elektronik eiSos that customers all over the world will receive their samples and even large quantities of electronic and electromechanical components within 24 to 48 hours.

Electrical wholesale unit expands further

In Italy, the Würth Electrical Wholesale Group (W.EG) has expanded its footprint by entering into a strategic partnership (controlling interest) with MEB s.r.l., one of the leading electrical wholesalers in Northern Italy, located in Schio, Veneto. The company currently employs 250 people in 24 branches. The product range includes mostly lighting, building automation systems, low voltage distribution and control equipment, renewable energy systems, as well as cables and industrial automation systems. The transaction is subject to the approval of the anti-trust authorities.

Employees

The number of employees increased by 1,975, from 74,159 at the end of 2017 to 76,134 in the first half of 2018. In Germany, the number of employees amounts to 23,305, an increase by 4.9 percent on the previous year. The Group currently has 32,898 sales force employees on the payroll.

About the Würth Group

The Würth Group is the world's market leader in its core business, the trade in assembly and fastening materials. It currently consists of more than 400 companies in over 80 countries with more than 76,000 employees on its payroll. Approximately 32,000 of those employees are salaried sales representatives.

In the Group's core business, the Würth Line, the sales program for the trades and industry comprises more than 125,000 products: from screws, screw accessories and anchors to tools, technical chemicals and personal protective equipment.

The Allied Companies of the Würth Group, which either operate in business areas related to its core business or in diversified business areas, round off the range by offering products for DIY stores, material for electrical installations, electronic components such as circuit boards, and financial services. They account for more than 40 percent of the Würth Group’s sales volume.

Ulrich Liedtke, Executive Vice President of W.EG and responsible for the business in seven European countries explains: “Based on the strong appreciation of local entrepreneurship, Würth Electrical Wholesale Group is comprised of companies which are leading regional or national players. The individuality of MEB s.r.l. and MEF s.r.l. is underlined by the fact that each of these companies operates under its individual brand. These companies benefit from their ability to draw on central resources and join hands for projects wherever that promises to be advantageous. Hence, we are confident that MEB s.r.l will gain access to an environment in which all its existing strengths can be further developed and additional support is available if needed.”

About MEB s.r.l.

MEB s.r.l was founded in Schio, Veneto in 1992 and achieved revenues of EUR 107 million in 2017. It employs more than 250 individuals and operates out of 24 outlets. The product spectrum consists mainly of lighting, building automation, low voltage power distribution and controls, renewable energy, cables and a broad portfolio of industrial automation products. The product offering is complemented by excellent customer support and other services. MEB s.r.l is a highly respected and leading company in its markets. MEB s.r.l. serves more than 13,000 active customers with electrical installers representing the biggest group.

About Würth Electrical Wholesale Group

Würth Electrical Wholesale Group, a subsidiary of the Würth Group, is a leading electrical wholesaler concentrating on the continental European market. In 2017, the electrical wholesale business had revenues of approximately EUR 1.5 billion, achieving 8.5% sales growth vs. the previous year. This sales volume accounts for approx. 12 % of total sales of the Würth Group.

Strategic Key Project

“Optimizing supply chain management is a central challenge to be successful in the long term,” Thomas Zenker, Chairman of the GRASS Management, describes the motivation for the biggest investment in the company’s history: “Our order books are full and the market demand is perfect. In spite of strong market growth in previous years, chances remained unused. The central warehouse will resolve one of the central bottlenecks and establish the prerequisites for a profitable and sustainable development.”

GRASS became part of the Würth Group in 2004 and stands on very solid footing. “Investments in logistics, above all to this extent, always stand for growth and development. The central warehouse enables us to significantly reduce reaction times,” Robert Friedmann, Chairman of the Central Managing Board of the Würth Group, is content and adds: “We are pleased that the company underwent such a dynamic development.”

Test run in Feldkirch

The former spinning plant in Feldkirch-Gisingen shall serve as an interim solution. A service depot will be established there and planned production and logistics processes be tested. These preparations may serve to test positive effects and reduce the complexity of the start of operations in Hohenems scheduled for 2019.

Festive groundbreaking of symbolic character

The foundation stone contains six time capsules, five of which shall symbolize the existing production sites, the sixth shall stand for the joint central warehouse. Representatives of the existing locations handed over the containers filled with individual items to the patrons, among them Robert Friedmann representing the Würth Group, and the three Members of the GRASS Management, Thomas Zenker, Thomas Müller and André Stiller. The patrons put the capsules in the foundation stone, which will be built into the central warehouse at a clearly visible place. The symbolic act ended with good wishes for a construction process free of incidents and accidents.

The bond was issued in cooperation with the joint lead managers BNP Paribas, DZ Bank, Landesbank Baden-Württemberg and UBS. After its announcement the day before and the resulting positive market response, the transaction could be concluded within just a few hours. Based on the reoffer price of 99.745% the notes have a yield to maturity of 1.0380% p.a.

The proceeds of the issue strengthen the Würth Group's long-term funding and liquidity basis for further growth of the Group. The average term of the outstanding financial liabilities of the Würth Group has been extended considerably. After the repayment of the EUR 500 million with an interest rate of 3.75% due on 25 May 2018, the average interest rate for interest-bearing debt of Würth will be reduced further.

About the Würth Group

The Würth Group is the world's market leader in its core business, the trade in assembly and fastening materials. It currently consists of more than 400 companies in over 80 countries with more than 75,000 employees on its payroll. Approximately 32,000 of those employees are salaried sales representatives.

In the Group's core business, the Würth Line, the sales program for the trades and industry comprises more than 125,000 products: from screws, screw accessories and anchors to tools, technical chemicals and personal protective equipment.

The Allied Companies of the Würth Group, which either operate in business areas related to its core business or in diversified business areas, round off the range by offering products for DIY stores, material for electrical installations, electronic components such as circuit boards, and financial services. They account for more than 40 percent of the Würth Group's sales volume.

Legal disclaimer

This press information neither constitutes an offer for sale nor a solicitation of an offer to purchase securities nor an invitation to otherwise purchase securities. It does further not create the basis for a contract on the purchase or subscription of securities. This press release neither constitutes an offer for sale nor a solicitation of an offer addressed to any person in any jurisdiction where it is unlawful for such an offer or solicitation to be addressed.

Securities may be offered or sold in the United States of America only after prior registration or without prior registration pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933 (“Securities Act”), as in effect at any given time. The securities referred to in this press release have not been nor will they be registered under the Securities Act. There has not been nor will there be a public offering of the securities referred to in this press release in the United States of America.

Potential investors are requested to make their investment decisions regarding the securities referred to in this press release solely based on the information provided in the prospectus as approved and published by the Commission de Surveillance du Secteur Financier, Luxemburg (“CSSF”). The prospectus is available free of charge from Würth Finance International B.V. or on the website www.wuerthfinance.net.