CONTENTS 1 UNDERSTANDING VALUE 39 GROUP MANAGEMENT REPORT ANNUAL 39 The Würth Group 16 COMMITMENT 40 Economic environment 41 Business development 18 Experiencing art and culture 42 Sales by region 22 Sharing commitment REPORT 26 Shaping education 46 The business units of the Würth Group Würth Group Fiscal Year 2015 46 The divisions of the Würth Line 30 BULLETIN 50 The units of the Allied Companies 30 Report of the Advisory Board 51 Electrical Wholesale unit 2015 32 Report of the Central Managing Board 52 Trade unit 53 Production unit 54 Electronics unit 34 THE BOARDS 55 RECA Group unit 56 Tools unit 34 Legal and organizational 57 Chemicals unit structure of the Würth Group 58 Screws and Standard Parts unit 35 Advisory Board 59 Financial Services unit 36 Central Managing Board 38 Customer Advisory Board 60 Net assets, fi nancial position and results of operations Annual Report of the Würth Group 66 Research and development 69 Risk and opportunities report 75 Employees 78 Corporate governance report 79 Subsequent events 79 Outlook 81 CONSOLIDATED FINANCIAL STATEMENTS 82 Consolidated income statement 83 Consolidated statement of comprehensive income 84 Consolidated statement of fi nancial position 86 Consolidated statement of cash fl ows 88 Consolidated statement of changes in equity 89 Consolidated value added statement 90 Notes on the consolidated fi nancial statements AT A GLANCE » www.wuerth.com CONTENTS 1 UNDERSTANDING VALUE 39 GROUP MANAGEMENT REPORT ANNUAL 39 The Würth Group 16 COMMITMENT 40 Economic environment 41 Business development 18 Experiencing art and culture 42 Sales by region 22 Sharing commitment REPORT 26 Shaping education 46 The business units of the Würth Group Würth Group Fiscal Year 2015 46 The divisions of the Würth Line 30 BULLETIN 50 The units of the Allied Companies 30 Report of the Advisory Board 51 Electrical Wholesale unit 2015 32 Report of the Central Managing Board 52 Trade unit 53 Production unit 54 Electronics unit 34 THE BOARDS 55 RECA Group unit 56 Tools unit 34 Legal and organizational 57 Chemicals unit structure of the Würth Group 58 Screws and Standard Parts unit 35 Advisory Board 59 Financial Services unit 36 Central Managing Board 38 Customer Advisory Board 60 Net assets, fi nancial position and results of operations Annual Report of the Würth Group 66 Research and development 69 Risk and opportunities report 75 Employees 78 Corporate governance report 79 Subsequent events 79 Outlook 81 CONSOLIDATED FINANCIAL STATEMENTS 82 Consolidated income statement 83 Consolidated statement of comprehensive income 84 Consolidated statement of fi nancial position 86 Consolidated statement of cash fl ows 88 Consolidated statement of changes in equity 89 Consolidated value added statement 90 Notes on the consolidated fi nancial statements AT A GLANCE » www.wuerth.com THE WÜRTH GROUP AT A GLANCE BUSINESS UNITS SHARE OF SALES WÜRTH GROUP Divisions of the Würth Line 2011 2012 2013 2014 2015 2015 2015 2014 Change Sales in millions of EUR 9,699 9,985 9,745 10,126 11,047 in % in millions in millions in % of EUR of EUR Employees No. of 66,113 65,169 63,571 66,044 68,978 Pre-tax operating result * in millions of EUR 395 415 445 515 525 Metal 16.0 1,765 1,661 + 6.3 Return on sales % 4.1 4.2 4.6 5.1 4.8 EBIT in millions of EUR 450 448 495 554 572 Auto 13.6 1,502 1,423 + 5.6 EBITDA in millions of EUR 736 762 798 831 903 Industry 10.7 1,180 985 +19.8 Net income for the year in millions of EUR 271 279 309 378 434 Cash fl ow from operating activities in millions of EUR 540 618 599 612 630 Wood 10.1 1,124 996 + 12.9 Investments in millions of EUR 455 465 433 367 525 Equity in millions of EUR 3,042 3,204 3,399 3,683 4,083 Construction 6.2 686 638 + 7.5 Balance sheet total in millions of EUR 7,771 7,649 7,978 8,142 9,210 Allied Companies Rating by Standard & Poor’s A/stable A/stable A/stable A/stable A/stable Total 56.6 6,257 5,703 + 9.7 The consolidated fi nancial statements of the Würth Group are prepared in accordance with the International Financial Reporting Standards (IFRS). * Earnings before taxes, amortization of goodwill and fi nancial assets, and changes recognized in profi t or loss of non-controlling interests disclosed as liabilities SHARE OF SALES Units of the Allied Companies 2015 2015 2014 Change in % in millions in millions in % of EUR of EUR SALES OPERATING RESULT Würth Group in millions of EUR Würth Group in millions of EUR Electrical Wholesale 10.7 1,186 1,001 + 18.5 Trade 7.2 796 746 + 6.7 Operating result in millions of EUR Return on sales as a percentage Electronics 5.5 609 552 + 10.3 12,000 600 11,047 515 525 9,985 10,126 Production 5.5 605 568 + 6.5 9,699 9,745 445 9,000 450 415 RECA Group 4.8 527 499 + 5.6 395 Tools 3.5 381 369 + 3.3 6,000 300 6.0 Würth Line Chemicals 2.2 240 236 + 1.7 Screws and Standard Parts 2.0 225 232 – 3.0 3,000 150 3.0 Financial Services 1.0 111 106 + 4.7 Other 1.0 110 114 – 3.5 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Total 43.4 4,790 4,423 + 8.3 THE WÜRTH GROUP AT A GLANCE BUSINESS UNITS SHARE OF SALES WÜRTH GROUP Divisions of the Würth Line 2011 2012 2013 2014 2015 2015 2015 2014 Change Sales in millions of EUR 9,699 9,985 9,745 10,126 11,047 in % in millions in millions in % of EUR of EUR Employees No. of 66,113 65,169 63,571 66,044 68,978 Pre-tax operating result * in millions of EUR 395 415 445 515 525 Metal 16.0 1,765 1,661 + 6.3 Return on sales % 4.1 4.2 4.6 5.1 4.8 EBIT in millions of EUR 450 448 495 554 572 Auto 13.6 1,502 1,423 + 5.6 EBITDA in millions of EUR 736 762 798 831 903 Industry 10.7 1,180 985 +19.8 Net income for the year in millions of EUR 271 279 309 378 434 Cash fl ow from operating activities in millions of EUR 540 618 599 612 630 Wood 10.1 1,124 996 + 12.9 Investments in millions of EUR 455 465 433 367 525 Equity in millions of EUR 3,042 3,204 3,399 3,683 4,083 Construction 6.2 686 638 + 7.5 Balance sheet total in millions of EUR 7,771 7,649 7,978 8,142 9,210 Allied Companies Rating by Standard & Poor’s A/stable A/stable A/stable A/stable A/stable Total 56.6 6,257 5,703 + 9.7 The consolidated fi nancial statements of the Würth Group are prepared in accordance with the International Financial Reporting Standards (IFRS). * Earnings before taxes, amortization of goodwill and fi nancial assets, and changes recognized in profi t or loss of non-controlling interests disclosed as liabilities SHARE OF SALES Units of the Allied Companies 2015 2015 2014 Change in % in millions in millions in % of EUR of EUR SALES OPERATING RESULT Würth Group in millions of EUR Würth Group in millions of EUR Electrical Wholesale 10.7 1,186 1,001 + 18.5 Trade 7.2 796 746 + 6.7 Operating result in millions of EUR Return on sales as a percentage Electronics 5.5 609 552 + 10.3 12,000 600 11,047 515 525 9,985 10,126 Production 5.5 605 568 + 6.5 9,699 9,745 445 9,000 450 415 RECA Group 4.8 527 499 + 5.6 395 Tools 3.5 381 369 + 3.3 6,000 300 6.0 Würth Line Chemicals 2.2 240 236 + 1.7 Screws and Standard Parts 2.0 225 232 – 3.0 3,000 150 3.0 Financial Services 1.0 111 106 + 4.7 Other 1.0 110 114 – 3.5 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Total 43.4 4,790 4,423 + 8.3 Would you opt to experience something you have always dreamed of if you knew that your memory of it would be erased as soon as it was over? How much would you be prepared to pay What do you value more: for an hour of leisure time? achieving something yourself or helping others? Imagine if your life was being filmed. Would the cinema ticket be HOW worth the price? If you could only save five of your personal MUCH possessions from destruction, which ones would you save? What is more important to you: Your car or your pet? DO YOU Would you buy a What would you choose: guarantee to live A three-week trip to until the age of 100 if an unknown destination you knew that all or EUR 3,000? of your friends would THAT? die before you? When was the last time you sacrificed something that was important to you? Someone gives you an Would you rather do without expensive present. Are you less happy your favorite food forever or when you find out that the person never watch TV again? got it on the cheap? 1 A QUESTION OF VALUE 2 3 »A THING IS VALUED ACCORDING TO ITS PERCEIVED USEFULNESS TO MANKIND.« Eberhard Friedländer, German economist (1799–1869) 4 What would the world be without value? A collection of atoms colliding without any meaning.