STIHL Magnesium Diecasting manufactures lightweight e-bike drive housing components and counts the German market leader for e-bike drives among its customer base. STIHL expects to see order volume increase over the next few years, and is therefore aiming to double its production volume by 2023. Half of the total investment will be made this year. The expansion at STIHL Magnesium Diecasting will also create up to 70 new jobs in the region in the medium term.

One of the largest and most modern magnesium diecasting plants in Europe

Founded in 1971, STIHL Magnesium Diecasting is celebrating its 50th anniversary this year. Today, it is one of the largest and most modern magnesium diecasting plants in Europe. With its high-quality products, the plant is an important part of the global STIHL manufacturing network. A workforce of approximately 800 in Weinsheim produces high-quality magnesium components for chainsaws and power tools, as well as for the automotive, motorcycle, bicycle, electronics and medical technology industries. Roughly 30 percent of its revenue comes from diecasting projects for external customers.  The plant has grown consistently over the past few years, and a new production logistics facility was added in July 2020.

In fiscal year 2020, the STIHL Group achieved a sales revenue of 4.58 billion euros. This represents a growth of 16.5 percent compared to the previous year (2019: 3.93 billion euros). A total of 90 percent of the revenue was generated outside of Germany. Excluding currency effects, revenue increased by 20.8 percent. In line with the positive business performance, staff numbers increased by 9 percent to 18,200 employees worldwide (as of December 31, 2020). The capital structure of the corporate group remains extremely solid due to its high equity ratio of 69.6 percent. Investments continue to be financed from the Group's own liquid funds. As in previous years, investments significantly exceeded depreciation. In 2021, STIHL expects further growth in sales and revenue – also as a result of numerous new products.

Worldwide growth in sales and revenue through increasing focus on private garden, new products and also due to favorable weather conditions
In 2020, the STIHL Group achieved sales and revenue growth in almost every market. The company recorded the highest growth percentages in the battery-powered segment. The share of the overall sales attributed to battery-powered products now amounts to 17 percent and continues to rise. There was also strong sales growth in the gasoline-powered segment with quantities actually far higher than in the battery-powered segment. Especially in North America, the demand for gasoline-powered tools showed positive development. "At the beginning of the coronavirus pandemic and despite pessimistic forecasts, we made the decision to continue producing with the highest standards and in compliance with the most demanding infection protection standards in order to supply our customers. In March and April 2020, we recorded sharp losses when many dealers were forced to temporarily close their businesses due to the coronavirus pandemic. However, the demand for STIHL began to rise noticeably in May, so that we were quickly able to overcompensate for the initial losses," explained Dr. Bertram Kandziora at the press conference presenting the company's annual results. Newly launched products, in particular, contributed to strong sales growth. For example, the STIHL GTA 26 garden pruner for garden maintenance as well as the STIHL HLA 66 battery-powered long-reach hedge trimmer and the STIHL MS 400 C-M gasoline-powered chainsaw – both for professional use – proved extremely popular. As such, there was strong demand for STIHL products both among private customers and also among professional users in the fields of horticulture and landscape gardening, agriculture and forestry, or road maintenance, who had to continue working despite the restrictions during the pandemic. The "cocooning effect" was also a positive influence. Many customers spent noticeably more time at home last year, working in their garden or yard. In addition, the weather last spring was so good that there was a high demand for STIHL gardening tools.

High level of health protection and extensive planning for production and logistics
"A high level of health protection, proactively safeguarding supply chains, and continuing production at a high level were the central pillars of our strategy in the past year. As a family-owned company, we have a strong responsibility toward our employees, dealers, and customers. Accordingly, we developed and implemented extensive measures in diverse areas of the company at an early stage," Dr. Kandziora emphasizes. An effective hygiene concept implemented in close cooperation with the responsible authorities to protect the health of our employees was the highest priority. At the same time, the company delivered all of the available parts stocks to the assembly plants or had these delivered by suppliers ahead of time. Dr. Kandziora: "This is where we benefited from the advantages of our own production network as well as the strong partnerships with our suppliers. Nevertheless, we were still forced to flexibly adapt various assembly plans." The company supported STIHL dealers with measures such as extended payment periods. Comprehensive and forward-looking production and sales logistics planning enabled STIHL to maintain the supply chains to the greatest possible extent and largely fulfill the high customer demand. "Still, even we experienced some supply delays for products that were in especially high demand," added Dr. Kandziora.

2020 was a successful and challenging year in the German market
STIHL achieved a significant increase in sales and revenue in the German market in 2020 and was able to exceed the 400 million euro mark for the first time. The cocooning effect also had a noticeable influence in Germany. Customers dedicated more time and purchasing power to their own house and garden. However, the strong demand combined with the simultaneous bottlenecks in the supply chains created a number of challenges and a difficult delivery situation. This development continued during the first quarter of 2021. At times, customers were forced to wait for products they had ordered because of the supply chain difficulties.

The German STIHL distribution center in Dieburg was able to continue operating without interruption during the pandemic. The distribution center employees work virtually from home while logistics and other relevant departments continue to work on site. Events for dealers such as the STIHL Treff and training seminars are also offered in digital formats and safeguard the continuing exchange with dealers. The new finished goods warehouse will be commissioned on schedule in spring, further enhancing logistics efficiency.

STIHL's own online store www.stihl.de was successfully launched in Germany in March 2020. This store enables customers to order STIHL tools online and have them delivered directly to their door. With its e-commerce offering, the company also strengthens the authorized servicing dealers because customers are recommended a nearby dealer with every purchase in the STIHL online store. As always, this dealer serves as their personal contact, providing on-site advice and professional service. For the provision of these services, the local dealer receives a payment from STIHL for every online purchase. The company is strengthening its e-commerce business and successively expanding the online store internationally. After the introduction in France in autumn last year, Spain, Portugal, Benelux, Italy, the United Kingdom, New Zealand, and Australia will follow this year.

STIHL's German parent company: record revenue and high investments
ANDREAS STIHL AG & Co. KG, the German parent company of the corporate group, achieved a record revenue of 1.38 billion euros in 2020. This represents a growth of 14.3 percent compared to the previous year (2019: 1.21 billion euros). The export ratio remained at a high level of 89.2 percent. Staff numbers increased by 3.4 percent to 5,262 employees. As of December 31, 2020, a total of 3,777 people worked in Waiblingen, 235 in Ludwigsburg, 386 in Fellbach, 797 in Weinsheim, and 67 in Wiechs am Randen. The Chairman of the STIHL Executive Board emphasizes: "In the past year, our employees have shown incredible commitment and flexibility. Satisfying the great demand for STIHL tools required exceptional dedication – including additional shifts and working on Sundays. I would like to thank all of our employees for their outstanding work and strong commitment." To express gratitude for this exceptional commitment, STIHL is sharing its company's success with the head office employees by distributing an annual bonus of 69 percent of a monthly salary. In addition, also a coronavirus bonus in the past year was paid out. The investment volume at the headquarters remains high at 155 million euros. The majority of the investments are made in construction projects such as the building complex consisting of the STIHL Brand World, administrative buildings, and a canteen at the company's headquarters at Badstraße in Waiblingen, the Mia Stihl Kindertagesstätte, a childcare center in Waiblingen, and also in expanding the logistics in Waiblingen-Neustadt with offices for manufacturing and materials. There has also been increasing investment in research and development, the IT infrastructure, and production technology.

STIHL shapes the transformation and anticipates further growth
"In the past year, we were able to strengthen our leading position in the world markets. This year, we will also have to overcome the challenges posed by the supply chain and material flows. Furthermore, it is important to ensure that the STIHL Group secures its future over the medium and long term. Our industry is undergoing a major transformation – driven by increasing digitalization and decarbonization. In the markets, we can see increasing competitive pressure in the battery-powered segment with changing customer requirements as well as new information and sales channels," explained the Chairman of the STIHL Executive Board. The company has initiated a number of projects to shape this transformation. These serve to strengthen the focus on the future market requirements and the customers themselves. "The STIHL corporate group will also retain its ability to grow over the medium and long term. For the current fiscal year 2021, I am also optimistic and anticipate growth in sales and revenue," continues Dr. Kandziora.

STIHL is committed to the Paris Agreement and will become climate-neutral 
"STIHL has had a connection with nature since the company was founded. The roots of our company lie in forestry and our products can help to use the environment responsibly, to maintain and protect it," explains the Chairman of the STIHL Executive Board. STIHL is committed to the Paris Agreement's goal of limiting global warming to less than two degrees Celsius. STIHL has been climate-neutral in Germany since January 2021 and this represents an integral part of STIHL's climate strategy. The worldwide production companies will follow in 2022, and the international sales companies will do the same by 2028 at the latest. The focus is on direct and indirect CO₂ emissions (Scope 1 and 2 as per the Greenhouse Gas Protocol) which can be influenced directly. For example, all of the electricity needs in Germany are provided by 100 percent green electricity. STIHL compensates for short-term CO₂ emissions that cannot be avoided by supporting international climate protection projects certified with the internationally recognized and independent "Gold Standard" seal of quality. Over the long term, the emissions will be further reduced through sustainable energy efficiency measures and the company's own green energy production in order to continue reducing the CO₂ compensation quantity.

New products that have been launched since the end of 2020 and will be launched in the first six months of 2021:

• Battery-powered products: The STIHL AP battery-powered system, designed for professional users in the field of gardening, landscaping, and tree maintenance, as well as municipalities, has grown by more than a dozen new products alone: 4 lawn mowers (STIHL RMA 253, RMA 443 PV, RMA 448 PV, and RMA 2 RV), 3 long-reach hedge trimmers (STIHL HLA 66, HLA 86, and HLA 135), 2 pole pruners (STIHL HTA 66 and HTA 86) and 2 brushcutters (STIHL FSA 86 R and FSA 135) along with a sprayer (STIHL SGA 85, May 2021) and a KombiEngine (STIHL KMA 135 R). This KombiEngine can be equipped with a diverse range of KombiTools – from brushcutters to blowers – further increasing the diversity of the STIHL battery-powered portfolio.
  
  The AK battery-powered system for private garden owners and semi-professionals (such as janitor services) has also been expanded. It now includes a lawn mower (STIHL RMA 248) with 46 cm cutting width and a brushcutter (STIHL FSA 60 R) which can be adapted to the specific gardening task using various mowing heads.
• Digital products: The new STIHL connected Box will make fleet management for power tools and batteries even simpler. In particular, customers with large fleets, such as horticultural and landscaping companies or municipal services, will profit from the ability to automatically read out data via the connected Box. In future, information such as the battery life and location will be available on the STIHL connected platform even without using a smartphone, as soon as a connected Box is installed in a central location at the company.
• Robotic mowers: STIHL is also expanding its range of robotic mowers: The new STIHL RMI 522 C automatically mows lawns with up to 2,100 square meters. Its intelligent programming, flexible mowing plan design and the ability to map its area of use ensure that the iMOW robotic mower only needs a brief mowing time each week. The RMI 522 C enables users to modify the mowing times, for example, from anywhere using the iMOW app via smartphone or tablet; the current status can be queried via smart watch.
• Gasoline-powered products: In autumn last year, the STIHL MS 881 rounded out the range of STIHL professional chainsaws. With its 6.4 kW, it is the most powerful production chainsaw in the world. In addition, it is currently the only model on the market in its performance class capable of fulfilling the strict EU 5 emissions standard thanks to its state-of-the-art STIHL 2-MIX engine. The new FS 561 C-EM is the most powerful model among the STIHL gasoline-powered clearing saws for use in forestry and landscape maintenance. Alongside its powerful engine, it is also distinguished by its especially large mowing circle (560 mm).
• Cleaners and vacuums: Two new medium-sized high-pressure cleaners (STIHL RE 150 PLUS and RE 170 PLUS) with a maximum pressure of up to 180 bar expand the cleaner segment. They deliver quick cleaning results for commercial and private premises. Two outdoor surface cleaners (STIHL RA 90 and RA 110) round out the surface care accessories range for high-pressure cleaners in the compact and medium-sized categories. Among the wet and dry vacuum cleaners, the new SE 33 entry-level model boasts impressive suction power, an extensive range of standard features together with excellent value for money.

New in the STIHL brand store
The new fashion collection and a high-quality selection of accessories were available in the STIHL brand store right on time for the start of the 2021 gardening season. The store also has the right selection for young gardeners such as the battery-powered toy blower or the battery-powered toy brushcutter with matching accessories.

STIHL TIMBERSPORTS® with alternative formats
Sporting events are currently facing difficult times. However, the STIHL TIMBERSPORTS® series had a successful season in 2020 with alternative formats and flexible timing. We plan to do the same for 2021: The European Trophy will take place on July 31, 2021 in Munich along with the Rookie European Championship. The German championship in Gelsenkirchen is then scheduled for August 21, 2021. The season finale will take place on October 2, 2021 at Motorworld in Munich: the 2021 Individual World Championships. Due to the coronavirus pandemic, team championships will not be held in 2021. Changes to the TIMBERSPORTS® event schedule cannot be ruled out while the pandemic and related restrictions continue. In the new season, STIHL TIMBERSPORTS® can continue to rely on strong partners: LIEBHERR will remain a sponsor for another three years. In addition, Ford is joining the STIHL TIMBERSPORTS® series in 2021.

STIHL and Elrad Group have a close and long-standing working relationship. "For STIHL, the joint venture is an important building block in our cordless strategy," says Martin Schwarz, STIHL Executive Board Member for Manufacturing and Materials. "This move allows us to increase our electronics expertise and expand our vertical range of manufacture and added value in a targeted manner." Scott Faude, Partner at Elrad Group, adds: "We're pleased to be able to further develop our cooperation with STIHL by establishing this joint venture so we can continue to pursue growth together." The new company is scheduled to start operations at ZAMA's Philippine production site in Santo Tomas in Batangas province at the end of 2021. In the medium term this will lead to the creation of more than 175 new jobs.

Cordless – a future-oriented segment
For many years, STIHL has increasingly opted for a portfolio mix of petrol-powered and cordless products and is now focusing particularly on its cordless strategy. The fast-growing cordless segment contributed some 15 percent to the STIHL Group's turnover already in 2019. The company's own highly automated battery pack production has been in operation at its headquarters in Waiblingen since 2019. This has allowed STIHL to build up comprehensive expertise in the cordless sector. The company delivers battery packs produced inhouse directly to customers to meet the ongoing significant increase in demand for cordless products.

About ZAMA Corporation
ZAMA Corporation is a wholly owned subsidiary of the STIHL Group and the world's largest manufacturer of diaphragm carburettors. To date, the ZAMA Group includes sites in Japan, Hong Kong, China, the Philippines and the U.S. The company supplies carburettors, oil pumps and other precision parts to various manufacturers of chainsaws and garden tools. With a workforce comprising more than 2,400 employees, ZAMA annually manufactures more than 15 million carburettors in some 350 different variants.

About Elrad International
Elrad Group has more than twenty years of experience as a supplier in the development and production of electronic and electromechanical assemblies for various industries. As a system supplier, Elrad Group is involved in several or all stages of the development process for electronic assemblies on behalf of its customers. The goal is mass production of these assemblies or fully assembled products. The company employs more than 1,800 people at four locations worldwide (among others in Slovenia).

The panel made up of international experts recognises "unique, novel and creative application of magnesium" and "advances over current practice". Due to the coronavirus pandemic, the award ceremony was a virtual event this year. The innovative technology already received top prize in the "Magnesium components" category at the Euroguss 2020 industry trade fair. 

Light and powerful: the STIHL MS 400 C-M
Thanks to the magnesium and the consistent lightweight design, the new STIHL MS 400 C-M has a powerhead weight of just 5.8 kg and therefore an ultra-low power-to-weight ratio of 1.5 kg per kilowatt. The new component also gives the machine an enormous maximum speed of up to 14,000 rpm, which makes pruning in particular faster. This first-rate performance offers professionals what they want from a forestry tool: outstanding power with low weight. The MS 400 C-M will be on the market in Germany in early 2021.

STIHL Magnesium Die-Casting: one of the largest die-casting plants in Europe
STIHL Magnesium Die-Casting was founded in 1971. Today, it is one of the largest and most modern magnesium die-casting plants in Europe. With its high-quality products, the plant is an important part of the international STIHL manufacturing network. It currently employs 800 people in the Eifel region and produces high-quality magnesium components for chainsaws and power tools, as well as for the automotive, motorcycle, bicycle, electronics and medical technology industries. Roughly 25 percent of its revenue comes from die-casting projects for external customers. The plant has grown continuously over the past few years, and a new production logistics facility was added in July 2020.

About the International Magnesium Association (IMA)
Founded in 1943, the mission of the International Magnesium Association (IMA) is to promote the use of magnesium and encourage innovate applications of the versatile metal. The IMA's members consist of primary producers of the metal, recyclers, foundries, fabricators, end-users and suppliers. Since 1962, the IMA has hosted an annual awards programme in recognition of companies demonstrating outstanding examples of magnesium's use. More information is available at www.intlmag.org

STIHL is working on its pledge to eliminate its global carbon footprint. The company has now set out its guidelines covering actions to protect the climate in the short, medium and long term. In an initial step, all plants in Germany (Waiblingen, Fellbach, Ludwigsburg, Weinsheim, Wiechs am Randen) and the distribution centre in Dieburg will become climate neutral from 2021. The focus will be on the direct and indirect CO₂ emissions that can be directly controlled (scopes 1 and 2 as outlined in the Greenhouse Gas Protocol). In future, the entire scope of electricity needs will therefore be covered by the use of 100 percent green electricity. CO₂ emissions which cannot be avoided in the short term will be compensated by support for international climate protection projects certified with the internationally recognised independent Gold Standard. In the longer term, emissions will be reduced through the im-plementation of sustainable energy efficiency measures, and generation of the company's own green energy will be significantly increased in order to steadily reduce the amount of CO₂ compensation.

The STIHL climate strategy

"As a family business with a commitment to sustainability, STIHL is conscious of its responsibility to the environment. We are committed to the target set in the Paris Climate Agreement of reducing global warming to less than 2° Celsius. With our climate strategy we want to play our part and expand our range of climate protection activities," says Dr Michael Prochaska, Executive Board member for Human Resources and Legal Affairs, whose responsibilities at STIHL include the Sustainability department. After STIHL Germany – the main producer of CO₂ emissions in the STIHL Group with around 40,000 tonnes – all the other global production companies will follow in 2022: Austria, Switzerland, China, the U.S., Brazil and the Philippines. The distribution companies around the world will be integrated successively into the climate audit from 2023 to 2028 at the latest. In terms of emissions from up- and down-stream processes (scope 3) outside STIHL's actual area of activity, we are currently evaluating the potential for reductions with the ambitious aim of reaching climate neutrality well before 2050 and ahead of the schedule set out in the Paris Agreement.

The pillars of climate neutrality

STIHL's climate strategy is built on the following pillars:

Green electricity: in future, STIHL will only use green electricity in Germany, in other words electricity generated from renewable sources. This will enable energy-related CO₂ emissions of the German plants to be immediately cut by some 50 percent.

Energy efficiency and generation: "In principle, our approach is to conserve resources in our production processes to the greatest extent possible: using materials efficiently, conserving water, electricity and heat, as well as designing buildings and spaces with sustainability in mind – these are all mainstays of our strategy. We will now intensify our efforts and resolutely make the most of further potential for conservation," explains Martin Schwarz, Executive Board member for Manufacturing and Materials. By 2030, energy efficiency is due to be increased by at least 40 percent as compared to 2019. STIHL will also increase its own generation of green energy, for example by adding to the numbers of solar installations. 

Compensation: On the whole, STIHL believes in the principle that reducing emissions comes before compensation. However, unavoidable emissions – for example, from combustion processes or electricity in countries where there is only limited availability of green electricity or none at all – are mitigated via compensatory measures. STIHL is supporting a Gold Standard certified climate protection project in Gatsibo, Rwanda. The local population has to boil water on open fires in order to be able to use it as drinking water. Burning wood, which first has to be cut, releases greenhouse gases. This is where the project comes in: it funds the renovation of existing ones, combined with the introduction of efficient cooking stoves. This means on one hand that less CO₂ is released and the level of deforestation is reduced, and on the other hand that the local forests are conserved and biodiversity maintained. It also means that people have a safe supply of drinking water and are protected from disease. Furthermore, the lives of women and girls in particular are improved significantly.

Further and more detailed information on the STIHL climate strategy can be found on our website at: stihl.com/climate-strategy

These are 2019's best suppliers:

• AKKA Czech Republic s.r.o. (Plzeň/Czech Republic): Development-associated engineering services
• Weiler-Bau GmbH und Co. KG (Bitburg/Germany): Civil and underground engineering and structural work in building construction and structural engineering
• Selettra S.R.L (Bentivoglio/Italy): Flywheels
• KAAZ Corporation (Okayama/Japan): Transmission
• Radici Novacips S.p.A. (Gandino/Italy): Plastic granulate

STIHL has been honoring the best suppliers for their outstanding performance every year since 1990. To date, a total of 109 suppliers have received this distinction, some of them even several times. 

Energy-efficient production logistics facility with 6,300 square metres of floor space
The new production logistics facility has a floor space of 6,300 square metres and provides over 11,100 storage positions. The logistics centre is located close to the production line and uses the waste heat from manufacturing, making it particularly energy efficient and allowing it to function without its own source of heating. Furthermore, a space of approximately 4,500 square metres that was previously used for logistics purposes has been freed up. Hartmut Fischer explains: "The newly gained manufacturing space allows us to increase production volume at STIHL Magnesium Die-Casting and set up new technologies in fields such as aluminium gravity casting, thereby further increasing the depth of production. This will create not only more jobs in the future, but also more possibilities for further growth."

STIHL gives the Eifel region a boost and creates new jobs
The new facility creates ten new jobs at STIHL Magnesium Die-Casting. Dr Joachim Streit, the chief executive and representative (Landrat) of Eifelkreis Bitburg-Prüm, congratulates STIHL on the completion and commissioning of its new production logistics centre: "STIHL is one of the largest employers in the region and can proudly look back on almost 50 years of success in our district. The investments made in the production logistics facility contribute to creating more jobs. I would like to thank the management and employees alike for this positive company expansion and the commitment they have made to our region." Aloysius Söhngen, the mayor (Bürgermeister) of Verbandsgemeinde Prüm, is thrilled: "The region is grateful that STIHL, our ‘core business', has invested in the region in this difficult time. The new production logistics facility is a boost to the location of Weinsheim. It is a positive sign for our future in these challenging times for our economy."

One of the largest and most modern magnesium die-casting plants in Europe
STIHL Magnesium Die-Casting was founded in 1971. Today, it is one of the largest and most modern magnesium die-casting plants in Europe. With its high-quality products, the plant is an important part of the global STIHL manufacturing network. Its roughly 750 employees in Weinsheim produce high-quality magnesium components for chainsaws and power tools, as well as for the automotive, motorcycle, bicycle, electronics and medical technology industries. Roughly 25 per cent of its revenue comes from die-casting projects for external customers.

Mixed reality rescue saw simulator offers wide range of benefits
The eLearning Journal jury highlighted the cost and resources savings, the removal of a reliance on good weather for training purposes and the high-tech training form as the main benefits of the STIHL rescue saw simulator. The Institute for Immersive Learning praised the fact that the rescue saw simulator is able to realistically model and implement "real" hardware into a virtual reality learning environment. STIHL's decision to become one of the first companies to launch a virtual reality learning experience was also commended.

Virtual learning and training opportunities offer numerous advantages
The saw simulator is a STIHL-developed training concept and a core component of its digital training offering.  It combines the use of real chainsaws with a virtual application (mixed reality). The simulator enables users to become more proficient in using saws, all while cutting costs through the virtual reality concept. The rescue saw simulator is an additional module in the standard application that is tailored to the requirements of fire services and other emergency services.  A wide range of scenarios have been programmed to provide training on situation assessment and how to make the right relief cuts. Emergency services can use the simulator for on-site or advanced training or for refresher courses. Once users have put on the virtual reality headset, they are transported immediately to an idyllic forest clearing. There they can choose between 13 different cutting techniques and three different courses. After users put on the virtual protective equipment, each cutting technique is explained step by step. The simulator is a unique opportunity to practise dangerous situations in advance in a safe environment, from dealing with a burning roller door or the hot windows on an underground train to simply felling and pruning a tree. Besides the zero-risk training environment, the virtual simulation is also cheaper compared to conventional training. What's more, the concept consumes fewer resources and can be used at any time of day, whatever the weather.

eLearning at STIHL
STIHL has been a keen proponent of digital training concepts for some time now and offers its customers digital products and services that create tangible added value. More than 36,000 active users in some 150 countries use the STIHL eLearning platform for training and learning purposes. The platform includes repair instructions, video tutorials, product training and news on the latest innovations, as well as information and manuals for anyone who likes to work with wood. The eLearning platform is available at www.stihl-training.com.

The STIHL Group achieved a turnover of EUR 3.93 billion in fiscal year 2019. That represents a 4 percent increase over the previous year (EUR 3.78 billion). Without the effects of foreign exchange rates, turno-ver growth would have been around 2.7 percent. STIHL executive board chairman Dr. Bertram Kandziora commented at the company's financial press conference: "Despite numerous challenges in the past year, we have been able to register a higher turnover in the Group. At the same time, the spiraling trade conflicts, flagging world economy and unfavorable weather conditions have left their mark." Apart from that, there has been an increasing trend to replace gasoline products by cordless battery products. While sales of battery products were up, the demand for gasoline products fell. Viewed overall, sales remained stable. The first quarter of this year has already been detrimentally influenced by the world-wide spread of the coronavirus. "After a very good January and February, the first quarter was on a par with last year's result. As dealerships have been shut down in a number of countries, we are assuming there will be a noticeable decline in the second quarter. But we remain optimistic for the medium term", said the STIHL executive board chairman. "Being a family-owned company, we have a considerable responsibility to our employees in the corona crisis. This means that we endeavor to secure jobs and, as far as possible, continue to run production lines and supply our dealers – naturally in close cooperation with the health authorities, while maintaining strict and governmental protective measures in the plants. After all, we also have an obligation to our more than 53,000 servicing dealers and millions of customers", said Dr. Kandziora.

Worldwide markets in 2019 show divergent trends
In 2019 the individual markets presented a very varied picture. Sales developed favorably in Western and Eastern Europe, excluding Russia. North America, which was the STIHL Group's growth engine for many years, recorded a slight decline. This trend is primarily due to the cold and wet weather at the beginning of the garden season. In Asia, the company achieved a slight increase in unit sales. India in particular developed very favorably and showed double-digit growth. Unit sales in Africa, where the company has a subsidiary in South Africa and a second subsidiary in Kenya since 2017, are at the same level as the previous year. "We further expanded our dealer network last year. In the meantime cus-tomers can buy STIHL products at more than 53,000 servicing dealers throughout the world and trust their professional advice and technical services", said Dr. Kandziora.
The number of employees in the Group was down 2.3 percent compared to the same time in the previ-ous year. As of December 31, 2019, the STIHL workforce totaled 16,722 men and women.

German market up and with new online service

• 2019 above previous year's level
  In fiscal year 2019 STIHL achieved a moderate increase in unit sales and turnover on the German market in spite of the lasting effects of the drought in 2018. "It was pleasing to see sales growth in battery products and pressure washers", explained the STIHL executive board chairman. Referring to the current year, he said: "2020 started positively. We were able to report significant increases in turnover up to March."
• Expansion of e-commerce: Start of STIHL Online Shop brought forward
  The launch of STIHL's own Online Shop (www.stihl.de) on the German market was brought forward to March 20, 2020. It allows almost all STIHL power tools to be ordered online and delivered directly to the customer's doorstep. This new e-commerce service also strengthens the position of servicing dealers. "When a customer makes a purchase in the new STIHL Online Shop, he or she is recom-mended to a nearby dealer, who is the local personal contact offering the usual professional advice and service. The local dealer receives a remuneration from STIHL for providing the services after each purchase", stressed Dr. Kandziora.

STIHL founding company:
Moderate increase in turnover and high investments in 2019
In 2019, the German founding company, ANDREAS STIHL AG & Co. KG, achieved a moderate increase in turnover of 0.8 percent to EUR 1.21 billion (previous year: EUR 1.2 billion). This can also be attributed to a change in the product mix. In the past year for example, more high quality products were sold than in the year before. On the other hand, unit sales at the founding company were down. "Nevertheless, the family-owned company continues to occupy a strong position in Germany", said Dr. Kandziora. Investments in 2019 amounted to EUR 134 million (previous year: EUR 124 million). The major portion of the investments was allocated to the extension of the Ludwigsburg logistics center, adding floors to the production logistics center in Waiblingen-Neustadt as well as modernizing the founding company's headquarters and building the STIHL brand world in Waiblingen.
The number of employees at ANDREAS STIHL AG & Co. KG was up 1.9 percent compared to the same time the previous year. As of December 31, 2019, the workforce at the founding company was 5,090. Of that total, 3,626 are employed in Waiblingen, 247 in Ludwigsburg, 395 in Fellbach, 755 in Weinsheim and 67 in Wiechs am Randen.

STIHL remains optimistic in medium and long term
The first quarter of the current year was severely affected by the measures taken all over the world to contain the coronavirus. The year began for STIHL with an increase in unit sales and turnover, but the spread of the coronavirus had a negative effect on business from March onwards. STIHL expects there to be an overall decline in unit sales in 2020. However, owing to the very dynamic development, the effects of the measures to contain the pandemic are not yet predictable with any certainty. "Thanks to our high degree of flexibility, we can quickly react to changes in the markets. We remain optimistic for the medium and long term", said Dr. Kandziora. Once the corona crisis has been overcome, STIHL ex-pects the markets will again gather momentum and unit sales will rise. "Nevertheless, we are facing a number of challenges that have to be met: Apart from continuing to run the business under considera-ble restrictions for production and sales during the pandemic, we have to deal with the increasing level of competition in the battery segment. Furthermore, weak global economic conditions are to be ex-pected in 2020. To cope with these challenges we have instigated a number of projects for increasing efficiency and saving costs within the company. STIHL has already overcome many a crisis since it was founded over 90 years ago. I am confident that we will also master this worldwide corona crisis. And I would like to explicitly thank our employees for their enormous commitment, the observance of abso-lutely essential safety measures to avoid the spread of corona and the outstanding cooperation in the Group", underscored Dr. Kandziora.

STIHL presents new products for 2020
For the first half of the year STIHL has announced a number of new products in the battery, gasoline and digital segments.

• New battery products for private and professional users
  In the STIHL AK battery system for private garden owners and semi professionals, the STIHL RLA 240 dethatcher provides two functions in one tool thanks to its dethatcher and aerator drum. The FSA 57 trimmer promises excellent low-noise cutting power and can be equipped with either a mowing head with quiet nylon line (AutoCut C 3-2) or polymer blades (PolyCut 3-2). The pleasantly quiet and powerful STIHL BGA 57 leaf blower to be launched this summer is attractively priced and enables ar-eas around the house to be quickly blow-swept with a minimum of effort.
  The versatile STIHL HSA 26 shrub and grass shears are a recent addition to the AS battery system for private users. Equipped with a double-edged shrub shear blade as well as a twelve centimeter wide grass shear blade, it is an ideal tool for keeping shrubs and grasses in shape. Another tool in this bat-tery line is the novel STIHL GTA 26 garden pruner, which was launched last autumn and has since been in high demand.
  The AP battery system, designed primarily for professional users in gardening and landscaping com-panies and municipalities, now includes the STIHL RMA 765 V lawn mower with a cutting width of 63 cm and the STIHL BGA 86 (15 Newton blowing force) and STIHL BGA 200 (21 Newton) leaf blowers.
  The new STIHL battery charging cabinet, developed together with the Kesseböhmer company, al-lows up to 20 STIHL batteries to be charged simultaneously, also overnight. An intelligent load man-agement system reliably ensures that all the batteries are ready for use the next day.
• World first in gasoline segment
  In the professional chainsaw segment the third-generation STIHL MS 261 C-M with an optimized en-gine and new cutting attachment delivers 20 percent more cutting performance and its overall weight has been reduced too. It has been available since the beginning of April 2020. A world first in the same segment is the STIHL MS 400 C-M. It is the first chainsaw ever to feature a magnesium pis-ton. The use of this light material in conjunction with other consistently applied lightweight con-struction methods has resulted in an exceptionally good power to weight ratio, i.e. less than 1.5 kil-ogram per kW. At the same time, the new component allows a maximum engine speed of 14,000 RPM. Professional users in the woods will appreciate the resultant extra performance, especially the greater productivity in limbing. The STIHL MS 400 C-M will be launched on the German market in au-tumn 2020, but it has already been highly acclaimed. "For the innovative technology of the magne-sium piston, which is produced in STIHL's own die casting plant in Weinsheim (Eifel), STIHL was awarded the first prize by the Europäische Forschungsgemeinschaft Magnesium e.V. (EFM) and the International Magnesium Association (IMA) in the die casting competitions at the Euroguss 2020 trade exhibition in the magnesium components category", said a pleased Dr. Kandziora.
• New connected app in digital product segment
  The STIHL connected app intended for professional users is new in the digital product segment. It will be available soon and offers a quick and concise overview of power tool data, upcoming maintenance dates as well as the last known location of the power tools. In addition, the user can call up the power tools that are in the immediate vicinity.

STIHL brand shop with new collection
Just in time for the start of the outdoor season, the new collection is now available in the online STIHL brand shop at www.stihl-markenshop.de. Customers and fans of the brand find everything that warms the hearts of true STIHL enthusiasts – from exclusively designed textiles and accessories to wooden toys and historic models and fan articles. Among other things, the popularity of this concept is demon-strated by the fact that the "Contra Lightning" universal storage box received the Promotional Gift Award 2020 in the special design category.

STIHL TIMBERSPORTS® WM 2020 in Gothenburg
Even lumberjack sports are affected by the current measures to suppress the coronavirus. For this rea-son all the planned events in the STIHL TIMBERSPORTS® extreme sport series up to the end of June – including the World Trophy scheduled for the end of May in Vienna – have been officially cancelled. Depending on how the situation unfolds, a decision on the remainder of the international season will be made in a considered and responsible manner. This also applies to the World Championships in Sweden planned for the beginning of November.

"We have decided to bring forward the launch of our online shop planned for Spring without further delay, in order to offer our customers a point of contact for STIHL gardening tools, accessories and other STIHL products despite the comprehensive restrictions in the retail trade," says Norbert Pick, Executive Board Member Marketing and Sales, at STIHL.

On the new website, customers will receive the same expertise and professional service as when buying in a specialist shop. Those who have their tools delivered at home and want to put them directly to use will find the appropriate instruction videos and articles on the new site. There is also a section with project ideas and tips for your garden - from proper lawn care to DIY projects. Customer service is also available by telephone or e-mail for queries about the tools.

Strengthening the specialist trade right now

"Our specialist trade partners are fully integrated into the new e-commerce experience," Pick continues. With every purchase in the new STIHL online shop, the customer receives a recommendation for a nearby specialist dealer. Wherever the current situation permits, our representative can be consulted as usual, offering advice and professional service. "For providing these services, the local dealer receives a remuneration from STIHL at the time of purchase. In this way, we are strengthening the position of the local specialist dealer". Further services such as online purchase and in-store pick up as well as instruction and guidance from the specialist dealer will be added soon.

The new website with the official online shop is now available at stihl.de.

At its meeting on 17 December the supervisory board of STIHL AG appointed Martin Schwarz (44) executive board member manufacturing and materials as of 1 January 2020. Martin Schwarz joined the STIHL Group in 2012 as head of the technology, special machinery, central and factory planning division. He reports directly to the executive board chairman, Dr. Bertram Kandziora, who will in future take over development and implementation of company strategy in addition to his overall responsibility for business development. The executive board chairman‘s responsibilities therefore encompass development of strategy and company, strategic projects, digitalization, corporate communications, group quality management and internal auditing.

Executive board chairman Dr. Kandziora joined the STIHL Group in 2002 as the executive board member responsible for manufacturing and materials. He was appointed as board spokesman in 2003 and has been executive board chairman since 2005. Since his joining, the family-owned company has experienced strong growth. Revenue increased from €1.5 billion to €3.8 billion, the worldwide workforce grew by 10,000 to more than 17,000 today, and the number of STIHL subsidiaries throughout the world has almost doubled.

The changing market environment, customer behavior and distribution channels create both opportunities and strategic challenges. STIHL's key market is in a state of transition. A considerable share of the hitherto dominant gasoline powered products is being complemented and in some cases supplanted by battery powered products. Accompanying this is a significant increase in the number of competitors and new distribution channels, including eCommerce. The STIHL advisory and supervisory board chairman, Dr. Nikolas Stihl, said: "With the new executive board organization we have optimized the individual areas of responsibility. The executive board chairman can now focus on strategic issues and further boost company development. In this way we are taking account of growth in the STIHL Group and the increasing need for transformation."

From 1 January 2020 the enlarged executive board of STIHL AG thus comprises the executive board chairman Dr. Bertram Kandziora as well as Karl Angler (Finance and Information Systems), Anke Kleinschmit (Research and Development), Norbert Pick (Marketing and Sales), Dr. Michael Prochaska (Human Resources and Legal Affairs) and Martin Schwarz (Manufacturing and Materials). "We greatly appreciate the work of our executive board members and are pleased that we have been able to fill the manufacturing and materials post with an outstanding and well-prepared executive from within the company", said Dr. Nikolas Stihl.

Affirmation of the Swiss location
"In constructing the new building, the company is reaffirming its confidence in the Wil and Bronschhofen location, which we are very pleased to see. The connection between STIHL and Wil has a long history behind it. The company has been here for more than 45 years, creating and maintaining jobs and constantly investing in the future," said mayor Susanne Hartmann. Stefan Kölliker, member of the governing council, added: "STIHL is an excellent training company that offers young people a range of training and further education opportunities. I am delighted that STIHL is giving local young people great educational opportunities by providing nine apprenticeship-based career paths." The three-story entrance building which is being constructed on Hubstraße 100 in Wil will have a gross floor area of approximately 2,700 square metres. The canteen spaces will be located on the ground floor and first floor. This will provide plenty of space for catering to STIHL employees and STIHL dealers, 2,000 of whom come from all over the world each year to visit the chain plant. The rest of the building will contain a reception area, a training room for dealers and visitor groups, meeting rooms, offices and a room for handing over young children to and from the childcare facility when shifts change. The access road to the plant's site will also be redesigned. The entrance building is slated for completion in mid-2021.

Energy-efficient new building
In recent years, the STIHL chain plant has implemented an array of environmental protection measures and increased energy efficiency. These include heat recovery from compressors, the use of geothermal energy and improved insulation. These optimisations also have positive effects on the new entrance building. The new building will be connected to the production building's heating system, which will make it possible to use waste heat from the production facilities as a source of energy. This means there is no need for an additional boiler. "This enables us to operate the new building in a highly energy-efficient way," Joachim Zappe said.

STIHL saw chain production as a success factor
The STIHL chain factory has been part of STIHL's global manufacturing network for 45 years. The saw chains are exported to 160 countries around the world. Steadily growing demand has led to the constant expansion of the Swiss location in recent years. In 2008, for example, a second chain plant was established in Bronschhofen. It has since been expanded to cover 10,000 square metres. In 2013, a new logistics building was constructed on the site, and employees have had their own multi-storey car park since early 2018. The STIHL chain plant was founded in 1945, and initially employed six workers. Now, around 950 employees work in the STIHL chain plants in Wil and Bronschhofen. STIHL is currently the only chainsaw manufacturer in the world that develops and produces a range of saw chains in-house in addition to producing the powerhead and guide bars.

Caption
At the ground-breaking ceremony on 16 October 2019 from left: Daniel Fuchs (Architect), Joachim Zappe (Managin Director STIHL Kettenwerk Schweiz), Dr. Bertram Kandziora (Chairman of the STIHL executive board), Hans Peter Stihl (Honory Chairman of the STIHL Advisory and Supervisory Board), Dr. Nikolas Stihl (Chairman of the STIHL Advisory and Supervisory Board), Benedikt Würth (member of the governing council Kanton St. Gallen), Stefan Kölliker (member of the governing council Kanton St. Gallen) and Susanne Hartmann (Mayor of Wil).

Modernisation for employees and specialist dealers
Bjoern Fischer, President of STIHL Inc., noted: "After 45 years of growth and expansion in Virginia Beach, we are looking forward to a continued positive economic environment for our successful, modern manufacturing operations in the city." This new building will improve the company's administrative and operational efficiency, meaning that we can serve our network of more than 9,000 STIHL specialist dealers and their customers even more effectively." One of the facilities STIHL Inc. created in the course of the building measures is a state-of-the-art training centre for STIHL dealers with an outdoor area that provides space for practical training sessions and product tests. Other developments include a STIHL Concept Store, which contains a contemporary sales space, and a chainsaw helix art installation showcasing more than 30 STIHL chainsaws from various points in the company's history, which goes back over 90 years.

Close connection between STIHL, Virginia Beach and Waiblingen
STIHL Inc., based in Virginia Beach, was founded in 1974. It now employs more than 2,100 workers and is a major component in the global STIHL sales and manufacturing network. The United States is STIHL's most important market. The cities of Virginia Beach and Waiblingen, where the STIHL Group's headquarters are located, have been closely interconnected for many years. Regular student exchanges take place between Tallwood High School and Staufer Gymnasium as well as between Cox High School and Salier-Gymnasium, all financially supported by STIHL. There are also close links between the two areas' fire departments and artists' groups. Virginia Beach and Waiblingen have been Friendship Cities since 2017.