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Making the Right Decisions at the Right Time

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Making the Right Decisions at the Right Time MAKINGMAKING THETHE RIGHTRIGHT DECISIONSDECISIONS ATAT THETHE RIGHTRIGHT TIMETIME Annual Report 2016 Offic tecumen dendendis S. 8 // dolorrum et dipisi apicietur aspedit S. 20 // aerspicil inus veles dellum fugitas pelles et voloriam S. 36 // nit la natet modis diaspit qui S. 46 // ressectaquas modiciu stiorpores dicid qui tota num facia S. 48 // 1 Key figures 2015 2016 Change in € millions in % Orders received Robotics 891.2 1,088.8 22.2 Systems 1,428.1 1,644.6 15.2 Swisslog 551.8 742.6 34.6 Group 2,838.9 3,422.3 20.6 Sales revenues Robotics 909.6 993.5 9.2 Systems 1,471.7 1,395.5 -5.2 Swisslog 620.8 593.5 -4.4 Group 2,965.9 2,948.9 -0.6 Oder backlog (Dec. 31) 1,639.0 2,048.9 25.0 EBIT Robotics 100.2 100.7 0.5 Systems 114.7 91.3 -20.4 Swisslog -45.9 4.8 110.5 Group 135.6 127.2 -6.2 EBIT in % of sales Robotics 11.0 10.1 – Systems 7.8 6.5 – Swisslog -7.4 0.8 – Group 4.6 4.3 – Earnings after taxes 86.3 86.2 – Financial situation Free cash flow 95.7 -106.8 -111.6 Capital employed (annual average) 676.8 783.0 15.7 ROCE (EBIT in % of capital employed) 20.0 16.2 – Capital expenditure 107.0 99.6 -6.9 Employees (Dec. 31) 12,300 13,188 7.2 Net worth Balance sheet total 2,381.7 2,543.9 6.8 Equity 732.5 840.2 14.7 in % of balance sheet total 30.8 33.0 – Share Weighted average number of shares outstanding (in millions of shares) 36.1 39.6 9.7 Earnings per share (in €) 2.39 2.19 -8.4 Dividend per share (in €) 0.50 0.50 1 – Market capitalization (Dec. 31) 3,197.5 3,506 16.8 1 Subject to approval by shareholders at the Annual General Meeting on May 31, 2017 MAKING THE RIGHT DECISIONS AT THE RIGHT TIME KUKA stands for Industrie 4.0 made in Germany and sets trends in robot-based automation. The increasing digi- tization of production and the cooperative networking of human workers and machines are set to change the world of work fundamentally. KUKA moves in a dynamic, innovation-driven market environment, which is continuously being redefined. A key factor of success is making the right decisions at the right time in order to set the right strategic course. An important aspect of KUKA’s success is the ability to iden- tify and benefit from trends and opportunities early on, as well as having the courage to embrace change. 3 KUKA AT A GLANCE KUKA is a global automation company with sales revenues of around 3 bil- lion euro and a workforce of approximately 13,200 worldwide. As one of the world’s leading suppliers of intelligent automation solutions, the company offers its customers everything they need from a single source: from the core component – the robot – to cells and fully automated systems. With its products and key technologies, KUKA is a driving force behind Industrie 4.0 and the associated digitization of production processes. The aim is to support customers with integrated solutions in order to optimize their value creation. Sales revenue Orders received Employees: 13,188 2.9 bil. € 3.4 bil. € +7.2% Key figures and locations 2016 4 MAKING THE RIGHT DECISIONS AT THE RIGHT TIME From buzzword to main strategy: Industrie 4.0 P. 10 / The future will be what we make of it P. 18 / VIRs – Very Important Robots P. 32 / Towards the east – Why KUKA is focusing on the Middle Kingdom P. 41 / Tradition meets innovation P. 44 / Looking to the future – Managing innovations P. 50 / KUKA has strong roots in Germany. And we will continue to grow from this base. We stand for Industrie 4.0 made in Germany. And that is what makes us successful worldwide. Dr. Till Reuter Cover: The sensitive LBR iiwa supports humans in the smart factory. MAKING THE RIGHT DECISIONS AT THE RIGHT TIME KUKA stands for Industrie 4.0 made in -Ger KUKA moves in a dynamic, innovation-driven many and sets trends in robot-based automa- market environment, which is continuously tion. The increasing digitization of produc- being redefined. A key factor of success is tion and the cooperative networking of human making the right decisions at the right time workers and machines are set to change the in order to set the right strategic course. An world of work fundamentally. important aspect of KUKA’s success is the abil- ity to identify and benefit from trends and opportunities early on, as well as having the courage to embrace change. KUKA Aktiengesellschaft | Making the right decisions at the right time The sensitive LBR iiwa fetches components from a warehouse and learns from its experience. 4 Editorial Editorial Dr. Till Reuter, Chief Executive Officer With sales revenues of around 3 billion euro and an EBIT At our booth, we were able to enthuse our customers margin of 5.6 percent, KUKA can look back on a success- with solutions and concepts for the factory of tomorrow. ful and also one of the most eventful years in the compa- In turn, the customers offered up ideas for further devel- ny’s history. opments in this regard. We have the advantage of being Of course, you are well aware of this since you have well-versed in the various processes used in a wide range of experienced the media frenzy surrounding the acquisition of different industries. This know-how benefits our customers KUKA by Midea first-hand. You were at the center of events in improving their own networked processes. and had to decide whether to tender your shares or not. Individualized products at low production costs. This is Now, Midea holds 94.55 percent of KUKA shares and has a challenge that nearly every industry must contend with. appointed four representatives to the Supervisory Board. But this can only be achieved with a smart, networked fac- Never before was KUKA exposed to so much publicity. tory. Smart factories require an enormous data capacity to make system conditions and production scenarios predict- New technologies for Industrie 4.0 and able. Using big data efficiently will therefore play a key role. digitization It becomes possible for complex production systems to be optimized when large amounts of data in a networked fac- At an early stage in 2016, our Industrie 4.0 endeavors got a tory can be mapped and processed in real time. New pro- big boost: KUKA robots performed during the opening -cer duction opportunities emerge when all of these conditions emony of Hanover Fair and an LBR iiwa robot personally are met and industrial production is connected to the cloud shook Barack Obama’s and Angela Merkel’s hand. and big data. 5 KUKA Aktiengesellschaft | Making the right decisions at the right time With KUKA Connect, KUKA has developed a new cloud- creating a new ecosystem around our customers. After all, based software platform that allows our customers to easily our customers demand more than just information about view the data of their KUKA robots from anywhere in the the KUKA processes. They want to have an overview of the world and thus to increase the performance and effective- entire process, which is why connyun is also open to third ness of their production operations. KUKA is implementing parties. KUKA is ready to assist customers in implementing open global standards and offers customers a high-perfor- their smart factory. mance real-time computing platform in combination with Digitization has been a matter of course for KUKA big data analytics. employees for some time. They work in global, interdiscipli- Robotics is also being shaped by this development. nary teams and across various time zones. They are right at Robots are becoming more sensitive, mobile and can move home in the KUKA Digital Business Cloud and communicate autonomously. They are the link between the real world and via an in-house business chat platform around the globe. the digital one. This becomes evident to our customers when they venture into the KUKA product world via the digital marketplace. We are boosting our innovative strength Global strength with German DNA KUKA is increasing its own innovative capacity by supple- menting its know-how through start-ups and strategic part- As a company with German DNA that is firmly rooted at its nerships. One of these start-ups is connyun. This company headquarters in Augsburg, KUKA is a strong player on the is developing a cloud-based platform that will enable KUKA European market. To achieve growth worldwide, it is crit- to offer its customers an entire portfolio of services. We are ical to expand to locations all over the globe. Because the 6 Editorial We have the advantage of being well-versed in the various pro- cesses used in a wide range of different industries. Dr. Till Reuter Taking responsibility Left: Dr. Till Reuter (born 1968) has been CEO of KUKA Aktienge- sellschaft since 2009. Prior to that he worked as a lawyer and invest- New, innovative business models will also impact the value ment banker in Europe and the United States. In May 2008, he chain and how ownership is handled, as well as the role of founded the holding company Rinvest AG, of which he is Supervisory Board Chairman. robots. They will become increasingly important in peo- ple’s daily lives. This raises questions in society: How do Right: Peter Mohnen (born 1968) has been CFO of KUKA Aktien- such developments change the world of work? Who is using gesellschaft since 2012.
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