WILO SE - The Wilo Executive Board in conversation

Welcome to a new edition of geo TV. I am especially pleased to have my board colleagues Mathias Weies, Georg Weber, and Dr. Patrick Wir. Together we look back on a very eventful 2020. The pandemic presented huge challenges for our employees, customers, suppliers, and for us as a group. We have prepared highlights and will also keep the future in focus. What were our biggest challenges in 2020? What affected you most? Let's start with your impressions, Georg.

He touches on an important point. I think we all became aware of our responsibility in this crisis year. We are not just any industrial company; we serve critical infrastructure with our products. The pump for critical infrastructure is like the heart for the human body. Nothing works without a pump, and we felt that in 2020. That was an important aspect for our employees to live up to this social responsibility.

Dear Mathias, what was your greatest challenge in 2020? You have a special responsibility for financial stability. What was your personal greatest challenge?

Thank you for the question. Last year was very special for the finance department. We had to deal with countless uncertainties. In December 2019 we had just approved the plan for 2020, which became obsolete in February. We ran scenario calculations for factory failures or supply chain breaks. Based on that, we initiated cost-cutting and investment reduction. We also explored state aid programs but fortunately didn't need them. We came through the crisis well, balancing risks and opportunities. Revenue growth was 1.8% currency-adjusted, a very good value. We were cautious but also brave; we were one of the few industrial companies not to use short-time work. Q1 2021 showed 20% growth and nearly a sixfold increase in profitability. The crisis isn't over, but we are stable and robust for 2021.

Absolutely correct. This success would not have been possible without our 8,000 employees worldwide. I have not experienced such a quarter in 15 years. The signs are good, but uncertainties remain. We need to maintain restrictive spending to get through 2021. India's case numbers are exploding again, and we must monitor that market. But we have learned to handle the pandemic, so we are well-equipped. Now let me share my personal impressions. Our tactical crisis management with all its facets involved extensive communication, new formats like geo TV, board letters, and the Wilo podcast. Overall, 2020 was characterized by short-term tactical behavior. But it was crucial not to lose sight of the long-term strategy. Dear Patrick, what was your personal greatest challenge?

We had hoped for something different, but coping with the corona crisis was not a sprint but a marathon. Keeping motivation high was key. We expanded home office regulations, launched training initiatives at our academy, and strengthened occupational health management. For production employees, we implemented hygiene concepts and protective measures.

Yes, that's correct. Digitalization helped us through contact tracing devices. We used solutions like ContactEx to warn about distances and trace cases. A complete package, I would say.

That's great. We cleared a hall for a test center that can quickly be turned into a vaccination center. We have coordinated with company doctors and are waiting for approval and sufficient vaccine.

Yes, Oliver, besides the new sites in emerging markets, we must strengthen the European production network. We are relocating production from Oschersleben to Laval and Hof. I hope we find a fair solution for employees.

Dear Georg, what was your strategic highlight in 2020 besides pandemic management?

Dortmund is the flagship site. Dear Patrick, in your assessment, what was your personal strategic highlight for 2020? You are responsible for corporate products.

We adopted the product strategy focusing on climate control and cooling, especially cold water applications. That will help us be seen as a solutions and services provider, supporting organic growth and acquisitions.

Yes, we support that. Matthias, can you give us some inside information?

A personal highlight was the acquisition of the Ab Juni Group, a specialist in water treatment and clarification. It expands our application spectrum in water management. I am also proud of our hydrogen strategy. The Wilo group can contribute along the value chain, from generation of blue and green hydrogen to distribution and use. We will implement this strategy in 2021.

Finally, a difficult question: if we were here next year, what would we wish for in retrospect? Let's start with Patrick.

I wish we overcome the pandemic challenges well, outperform 2020, and successfully integrate the Bionics project. Most of all, I wish to take our employees along on this exciting journey.

I have two wishes: to come through 2021 stably and to report a successful business year in 2022, and to have some model activities this year.

I agree. I also look forward to a summer party for the 150th anniversary. What I miss most is customer contact, which is possible digitally but not the same. I wish to regain personal international contact.

And that concludes today's keynote. Many thanks for your participation and time, and to the audience for watching. All the best.