Press release
29/04/2013
Editor: Kay Hoffmann
- Financial press Dortmund pump expert announces fourth successive record
year
Sales increase to 1.23 billion EUR in
2013:
Wilo Group stronger than ever
Dortmund/Düsseldorf. With its fourth successive year of record
sales, highest operative profits ever, the successful launch of
new, innovative products and pioneering investments, the Wilo
Group continued its relentlessly profitable growth rate. Sales revenues increased to 1.23 billion EUR, up 3.7 percent compared to
the previous year (+ 6.1 percent adjusted for currency effects).
"In view of the limited opportunities for economic growth that still
exist in many parts of the world, it is commendable that we have
managed to achieve reach or exceed most of our ambitious targets," said CEO Oliver Hermes at the Wilo Group's financial press
conference on Tuesday, 29 April 2014, in Düsseldorf. "We were
able to expand more dynamically than the market as a whole,
although the global macro-economic situation has not recovered
as well as was forecast," explained the 43-year-old. "In spite of
these difficult market conditions we were able to use 2013 to lay
the groundwork for continued successful development of the
company in the future."
In keeping with its economic development, Wilo's workforce also
expanded by 4.3 percent in 2013, reaching an average of 7,194
staff.
Furthermore, the Dortmund-based company also modernised its
brand identity and further clarified its brand promise as only of
the world's leading pump experts in the fields of building services,
water management and the industrial sector.
Key figures confirm record year
The Wilo Group's fiscal year was not only successful in terms of
sales. At 125.7 m EUR (previous year: 119.7 m EUR), the group
recorded the highest operative profit (EBIT) of the company's
history and an EBIT margin of 10.2 percent (previous year: 10.1
percent).
Consolidated earnings rose to 83.0 m EUR (previous year: 78.2 m
EUR), setting a new record with a significant increase of 6.1% or
4.8 m EUR.
Equity also developed positively, reaching 476.9 m EUR by the
end of the fiscal year 2013 (previous year: 458.0 million EUR).
The equity ratio improved from 46.8 percent to 47.9 by 31 December 2013. The Wilo Group still has a very strong liquidity position, with funds of 177.5 m EUR (previous year: 176.5 million
EUR). The cash flow from operative business was 130.2 m EUR,
almost 10 m EUR more than the previous year (120.8 m EUR).
The Wilo Group has no net debts, and was able to further significantly improve its net financial position (funds minus financial
debts).
Targeted strategic investments as drivers for growth
In fiscal year 2013, Wilo invested 71.0 m EUR. These investments
were mainly centred on expansions to capacity, new production
technology and the expansion of existing sales and production
sites. On focal point for investment was the modernisation and
expansion of production capacity at the important European sites
in Germany and France. 31.4 m EUR was put into this project.
In Russia, the Wilo Group is planning to set up a new production
site within the next two years, a move that acknowledges the size
and great importance of this market. As a global player, the Wilo
Group is keeping a close eye on the current geopolitical risks –
especially in Russia – so that it can respond promptly and flexibly
to changes. Imponderabilities such as political and social unrest in
certain parts of the world, such as the recent events in Ukraine
and Turkey, can affect business at any time.
Site development at Dortmund headquarters
By the end of 2015 at the latest, the first ground will be broken
as work begins on the modernisation of existing production and
administration buildings in Dortmund, as well as the construction
of new facilities. Additional plots for this were acquired back at
the end of 2012, and last year saw the demolition of the first
buildings as construction preparations began.
"The site development project shows our commitment to the Ruhr
region," explained Oliver Hermes. "By strengthening our high-end
site, we are underlining how important business activity in Germany is to the entire Wilo Group," continued the CEO.
Expanding expertise through acquisitions and collaborations
The successful takeover of GEP Industrie-Systeme GmbH, a specialist in the field of industrial, potable and fire water, has
strengthened the Wilo Groups business activities in this market.
As part of a venture capital investment, the Dortmund-based
pump expert has purchased shares in the Munster software and
system developer iEXERGY. The minority shareholding contract
was prepared in 2013 and signed on 11 April 2014. The companies are both involved in a technological project, where they are
working together on the exchange of information between highefficiency pumps and other components of building automation.
Staff numbers in Research and Development increase by
around one quarter
43.9 m EUR was spent on Research and Development over the
course of the last fiscal year. This is 12% more than in 2012. This
clearly emphasises the Wilo Group's claim to strengthening its
position as a leader in terms of technology, innovation and quality. In keeping with this, 2013 saw further intensification of key
product development activities, in particular all the activities and
developments in the field of energy and resource efficiency. The
number of staff in the Research and Development division has
increased by 25%.
Sales increase in all regional markets
The Europe region recorded the largest share of the Wilo Group's
worldwide sales, with 50.6 percent. Its sales for fiscal year 2013
came in at 622.6 m EUR, even more than the previous year's figure of 615.9 m EUR. The Asia Pacific region's sales share came to
23.4 percent. Sales rose from 271.2 m EUR in fiscal year 2012 to
287.4 m EUR in 2013. In the EMEA region, sales hit 210.0 m EUR
(previous year: 195.5 m EUR), a share of 17.0 percent.
Oliver Hermes: "Our strategy of growing in new markets while
remaining strong in the mature markets has paid off once more."
Mr Hermes says that Wilo plans to intensify its expansion into the
newly industrialising countries of South-East Asia over the coming
years, in addition to increasing its market presence in the highgrowth countries in Latin America and Africa. "We also aim to
reinforce our strong market position in Europe," the CEO concluded.
Capturing new horizons – for a successful future
For its further development, the Wilo Group is taking into account
the mega-trends relevant to the company: globalisation, urbanisation, technological advancements, a lack of water, paucity of
energy and climate change. These global mega-trends are based
on long-term developments in important socio-economic changes.
The Wilo Group uses this information to draw up new areas of
action in order to continue its sustainable growth.
For example, the huge increase in urbanisation offers great opportunities: in Africa and Asia only around 40 percent of the
population live in urban areas – far fewer than in traditional industrial nations. Due to the economic dynamics, this will change
drastically over the coming years.
More and more people are moving into metropolitan areas, and
new cities and mega-cities are popping up all over the place.
"One of our strengths is the ability to see markets in terms of the
bigger picture, with all their facets. This is the only way for us to
tailor our expertise precisely to the different conditions that are
typical in each country. Only then can we start to talk about future-oriented solutions," explained CEO Oliver Hermes.
On the other hand, the question of how much potential remains
for Wilo in the apparently saturated markets of Europe – and especially Germany – can be answered easily with a few facts. Nine
out of ten heating pumps in European households are technologically outdated. The use of high-efficiency pumps could reduce the
energy consumption of these households by up to 90 percent.
Rounded up to cover the EU, there are potential savings of 32
terawatt hours in the glandless pump sector alone, and CO2
emissions could be cut by 11 million tonnes. The Wilo Group recognises that it has a role to play in this long process, which is
known in Germany as the "energy revolution" and is being
pushed through by ambitious regulations at the European level.
Wilo's pump portfolio is already one of the most efficient in the
world today.
"Thanks to the hard work of our staff all around the world, our
targeted investments and a strategic approach that allows us to
plan far into the future, we have made it a requirement to capture new horizons and continue to generate disproportionate
growth in the future," concluded Oliver Hermes, CEO of the Wilo
Group, as his presentation came to an end.
Your contacts:
Wilo Press Office
Wilo Press Service
Wilo Group
KOOB Agentur für PR GmbH
Silke Walter
Nina Grubbert
Phone: +49 231 4102-7140
Phone: +49 208 4696-333
E-mail: [email protected]
E-mail: [email protected]