The Würth Group has coped well with this extreme situation so far and remains committed to doing everything in its power to protect the most important thing of all: the lives and health of our employees. For the trades, a sector of the economy that is of systemic importance, we had the right answers to the most pressing questions: Contactless goods procurement got off to a flying start right away, allowing us to maintain our high delivery performance. Our operating result of EUR 775 million is up slightly year-on-year and we can also report a slight increase in sales of 1.0 percent to EUR 14.4 billion. The number of employees rose slightly, by 0.6 percent.

We are staying true to our innovation strategy, even in times of crisis. The Bloomberg Innovation Index shows that we cannot afford to lose focus. In this ranking of the world’s most innovative economies, Germany has dropped to fourth place after coming in first only last year. We see our innovation center in Künzelsau as our contribution to helping Germany take back the lead. We are investing around EUR 70 million to create state-of-the-art laboratories and workshops on premises spanning 15,000 square meters. The future? Bring it on!

Work of the Advisory Board

The Advisory Board of the Würth Group held four extensive meetings in 2020. These meetings were all based on the reports from the Central Managing Board members covering the business situation, projections, and opportunity and risk management. All transactions subject to approval pursuant to the company statutes were submitted to the Advisory Board for approval in good time and considered at length; in urgent cases, resolutions were passed by means of a circular procedure.

In 2020, the work of the Advisory Board was dominated by the COVID-19 pandemic and its impact on the company. The Advisory Board provided support to the Central Managing Board. The aim of the Advisory Board’s work was to continue with the general strategic development of the Würth Group in addition to focusing on overcoming the pandemic in the short term. In this respect, topics relating to the digitalization of our business model and processes remained a focal issue in 2020 and became even more important in light of the pandemic. As far as the regions are concerned, the Advisory Board took an in-depth look at the Würth Group’s activities in North America.

The Advisory Board continuously monitored the work of the Central Managing Board and provided it with support in its management duties, in the further strategic development of the company, and with regard to key individual issues. In addition, the Chairwoman of the Advisory Board was provided with regular information on current developments and relevant events within the company outside of board meetings in reports by members of the Central Managing Board.

Each of the Advisory Board’s three committees (Personnel, Audit, and Investment Committee) met three times in 2020. These meetings serve to increase the efficiency of the Advisory Board, carrying out preparatory work on complex issues. The committee chairs each report regularly and in depth to the Advisory Board as a whole on the work of the committees.

On 27 April 2021, the Advisory Board’s Audit Committee took an extensive look at the 2020 consolidated financial statements, including the Group management report, as well as the audit report prepared by Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, in which an unqualified opinion was issued. The Audit Committee examined these documents and approved them. Other focal points of the Audit Committee’s work in 2020 were once again compliance and risk management.

The Advisory Board’s Investment Committee assessed the investment projects that are subject to approval and classified them according to urgency and significance. The committee also took a detailed look at investment controlling, particularly in light of the impact of the pandemic on short-term business development. The Würth Group will remain committed to its investment culture as a prerequisite for the company’s growth. The Advisory Board approved the corporate plan, including the investment and financial plan, of the Würth Group for the 2021 fiscal year at its meeting on 11 December 2020 based on the proposal submitted by the Investment Committee.

The Advisory Board’s Personnel Committee dealt with all personnel measures falling within the Advisory Board’s area of responsibility at its meetings. The Committee focused on HR development and succession planning for managers, as well as on the structure of the company’s incentive and remuneration systems. The Personnel Committee has the power to pass resolutions regarding employment contracts and management remuneration.

The Advisory Board of the Würth Group would like to thank the Central Managing Board and the Supervisory Board of the Würth Group’s Family Trusts for the good working relationship, especially Prof. Dr. h. c. mult. Reinhold Würth, Chairman of the Supervisory Board of the Würth Group’s Family Trusts. For the Würth Group, 2020 was a fiscal year dominated by the COVID-19 pandemic, which developed much better than expected in the second half of the year and, overall, did not have any major negative impact on the company thanks to the Würth Group’s diversified position. For this reason, we would particularly like to thank all our employees for their excellent performance, as well as all our customers and business partners for their loyalty to the Würth Group.

Sincerely,

Bettina Würth

Chairwoman of the Advisory Board of the Würth Group