After strong growth in 2021, Kuka plans to invest 800 million euros in research and development by 2025. The new iiQKA robot operating system is already being used by the first companies.

The annual press conference of robotics specialist Kuka could actually have been a very optimistic event, as the figures presented for the past financial year 2021 look very good. However, apart from the fact that, once again, it was only possible to meet virtually due to coronavirus, Russia's war against Ukraine also weighed on people's minds.

Kuka is not directly affected - apart from the general consequences that affect all companies. The manufacturer has no plants in Russia or Ukraine and has now ceased all activities in Russia, although its employees are involved in helping refugees.

The figures at a glance

Kuka has had a strong year in 2021 with record increases and growth in all business divisions. According to the company, the growth is due to a successful combination of investments and cost-saving measures as well as the recovering automation market.

The Group's order intake increased by 27.7% to around 3.6 billion euros (2020: 2.8 billion euros) and sales revenue by 27.7% to 3.3 billion euros (2020: 2.6 billion euros). Although global supply bottlenecks and increased material and logistics costs slowed down the positive development, particularly in the second half of the year, EBIT rose to 61.8 million euros (2020: -113.2 million euros). The EBIT margin increased to 1.9% (2020: -4.4%).

The China business in particular recorded strong growth, with sales 48.4% higher than in 2020 and a 39.0% increase in order intake. Kuka also grew in the Chinese robot market in new markets such as electronics. In fact, growth in China in particular contributed to the second-best result in the company's history.

800 million euros for R&D

Group CEO Peter Mohnen wants to grow on this basis: "Even though we will be faced with supply bottlenecks, material shortages and higher costs in the coming months, we see a strong tailwind for Kuka - and we will use this tailwind," says Mohnen. "Our goal is to be the leader in robot-based automation by 2025, with a clear focus on intensively driving forward technologies and innovations. To this end, we will invest around 800 million euros in research and development by 2025, more than ever before."

The key to massive growth is a comprehensive portfolio as well as regionally tailored products and solutions for the individual markets, particularly in General Industry. "KUKA will benefit from this growth strategy and our technological focus in the long term - at all locations around the globe," says Mohnen.

One of the most important technical innovations for this year is the new iiQKA robot operating system, which has already been introduced to the first reference customers in the DACH region and will also take center stage at the Automatica trade fair in June.

Growth in new sectors

Small and medium-sized companies in particular are the target group for which iiQKA is intended to facilitate the introduction of robots. "Our automation and logistics solutions are increasingly in demand among small and medium-sized companies. Companies in the consumer goods and food industries are also relying more and more on robotics," said Peter Mohnen.

With the expanded robot portfolio such as the KR Delta and new variants such as the 'Hygienic Oil' robots for food production, Kuka wants to grow in other industries. There is also a strong focus on battery cell production.

CFO Alexander Liong Hauw Tan expects growth in 2022 despite the global economic situation.

Commitment to the Augsburg site

The planned "squeeze-out" of minority shareholders by the Chinese majority shareholder Midea Group, which currently holds more than 95% of the shares, was also addressed once again. The delisting is not expected to have any direct impact on the German sites: A large part of the planned investments are to be made here and Midea is also not currently planning to conclude a domination agreement with the German subsidiary.