KUKA : Quarterly Earnings

Annual Report 2021

beyond automation

Key figures

Key figures

in € millions Orders received

Systems Robotics Swisslog

Sales revenues

Swisslog Healthcare China

Group

Systems Robotics Swisslog

Swisslog Healthcare China

Group

Order backlog (Dec. 31) EBIT

Systems RoboticsSwisslog

Swisslog Healthcare China

Group

EBIT in % of sales

Systems Robotics Swisslog

Swisslog Healthcare China

Group

Earnings after taxes

2020	2021	Change in %
715.3	981.8	37.3
901.3	1,081.3	20.0
643.9	749.8	16.5
188.0	238.8	27.0
490.4	681.4	39.0
2,792.2	3,565.3	27.7
671.6	978.3	45.7
899.2	1,020.7	13.5
527.7	650.9	23.4
204.2	205.0	0.4
397.1	589.1	48.4
2,573.5	3,286.2	27.7
1,992.6	2,311.9	16.0
-37.4	31.1	>100
-3.9	61.8	>100
0.8	19.0	>100
3.0	3.8	26.1
-4.7	10.2	>100
-113.2	61.8	>100
-5.6	3.2	880 Bp
-0.4	6.1	650 Bp
0.1	2.9	280 Bp
1.5	1.8	30 Bp
-1.2	1.7	290 Bp
-4.4	1.9	630 Bp
-94.6	49.4	>100

in € millions Financial position

Net assets and financial position

Free cash flow

Capital employed (annual average) ROCE

Capital expenditure Employees (Dec. 31) 1

Balance sheet total

Equity in % of balance sheet total Share

Weighted average number of shares outstanding (in millions of shares)

Diluted/undiluted earnings per share (in €) Dividend per share (in €)

Market capitalization (Dec. 31)

2020	2021	Change in %
37.0	100.4	>100
1,321.1	1,245.5	-5.7
-8.6	5.0	>100
80.7	101.4	25.6
13,700	14,128	3.1
3,116.5	3,709.1	19.0
1,203.7	1,354.6	12.5
38.6	36.5	-210 Bp
39.8	39.8	-
-2.59	0.98	>100
0.11	0.11 2	-
1,635	2,904	77.6

Bp: Basis point (= 1/100 percentage point)

• 1 The term "employee" refers equally to persons of all gender identities. Figures for employees are based on the full-time equivalent throughout the annual report.

• 2 Subject to approval by shareholders at the Annual General Meeting on May 17, 2022

 at a glance

 at a glance

 is a global automation company with sales revenues of around 3.3 billion euro and a workforce of about 14,000. As one of the world's leading suppliers of intelligent automation solutions,  offers its customers a full range of products and services from a single source: from the core component - such as robots, automated guided vehicles (AGVs) and other automation components - to production cells, turnkey systems and networked production with the aid of cloud-based IT tools. Industrie 4.0 is bringing the digital networking of production, flexible manufacturing concepts and new business models to the fore. The aim is to support customers by providing comprehensive automation and digitalization know-how in order to optimize their value creation.

Key figures 2021

Sales revenue

Orders received

Employees

3.3 billion €

3.6 billion €

14,128

Contents

Foreword

4 Group financial statements 49

Supervisory Board report  and the capital market Consolidated management report

6 Group notes 57

11 Responsibility statement 108

13 Independent auditor's report 109

Fundamental information about the Group 14

Glossary 114

Economic report 21

Forecast, opportunity and risk report 35

Financial calendar 2022 116

Internal control and risk management system 44

Contact and imprint 116

Disclosures in accordance with section 289a sentence 1 and section 315a sentence 1

of the German Commercial Code (HGB) including accompanying explanations 46

Foreword

I have been proud to call myself a member of the  family for just under ten years now. And the past year 2021 clearly demonstrated what makes this company and its people so special. It is not only the great expertise and the broad positioning in so many different industries and countries. Above all, it is the " Spirit". That is something that money can't buy, but something that comes about when people happily work together successfully.

After a very tough year in 2020 due to the coronavirus crisis, all the signs at  indicated a return to old strength. Thanks to the unpar- alleled dedication of our approximately 14,000 employees, we have fought our way back to where we belong: the forefront. Anyone who thought that the cutbacks and necessary belt-tightening and restruc- turing measures resulting from the crisis had done lasting dam-age to the company has been proven wrong: with revenues of 3.29 billion euro (+28%) and orders received totaling 3.57 billion euro (+28%),we delivered a record year. We managed to leave the red figures well behind us with an EBIT of 61.8 million euro. While three of our five divisions still made losses in 2020, this time they all recorded solid growth figures and were in the black. This was despite the fact that, due to the ongoing pandemic and the resulting supply chain difficul-ties, the circumstanc-es were anything but favorable.

On the orders side, the strong market pull in the e-mobility sector gave us a boost, particularly in the USA. At , we not only have decades of experience in conventional automotive manufacturing, but have also mastered new areas, such as battery assembly or lightweight bodies for electrified vehicles. We are also aided by our clear focus on the Chinese market - the China division recorded a 39 percent increase in orders. The Chinese market was among the first to return to full speed after the corona-virus-related slump. There is no other country in the world that has as many robots in operationas the Middle Kingdom. And there is no other state in which growth rates are so high. It is therefore all the more important for us to have a strong local team of market-oriented development, sales and produc-tion staff. The partnership with our Chinese majority owner Midea is helping us to open doors in China and automate new areas.

Our robotics business reflected the global trend towards more auto-mation. Never before have  robots been used in so many differ- ent branches of industry. From workshops to beverage bottlers, from chocolate museums to mill operations. Our mission to make life and work easier and to simplify the process of starting out in automation is what drives us on and will continue to provide momentum in the years to come. The key competence in this area is primarily on the software side, and so our largest development project, the new iiQKA robot control platform, is the path to the digital future. For a long time now, it has no longer been sufficient merely to manufacture

Alexander Tan Chief Financial Officer

Peter Mohnen Chief Executive Officer

high-performance machines. It is only with easy operation and flexi- ble digital connectivity options that our products create added value. This trend is set to continue, increasing the proportion of digital prod- ucts in our portfolio relative to hardware.

Our broad-based business segments help us to remain flexible: intral- ogistics, in other words the au-tomated warehousing and order-pick- ing of commercial products, continues to boom. And with Swisslog, we are benefiting from this trend towards greater individualization in retail and further growth in e-commerce. Over 16 percent growth in the volume of orders received speaks for itself. Here, too, we expect above-average growth to continue.

Due to the nature of our company with a relatively low produc-tion depth, the supply chain has often been in focus. Managing a globe-spanning network of component sources flexibly has been more

challenging since the pandemic than almost ever before. The war in Ukraine has added a new devel-opment that virtually defies predic- tions. Despite the fact that we have so far had very little in the way of business activities in Ukraine and Russia, the strained global supply chains and the expected infla-tion in the commodities segment will mean worldwide uncertainty in almost all sectors of industry. I have confidence in our highly effective production, logistics and purchasing team, which once again managed to maintain uninterrupted produc- tion at our locations in Germany, China and Hungary last year despite all the restrictions, volatile price developments and problems in the procurement of a wide range of different parts. And all this despite the fact that, due to the demand situation, far more robots were manufactured than had been planned at the start of 2021.

These achievements make me proud and we are aware at  that such a development is no coin-cidence, but the result of constant hard work and dedication. Together with a strong team, I am look-ing forward to continuing to do everything in my power to move  forward in the future and come a step closer to our vision of becoming the undisputed number 1 in smart automation.