In 2020, the Group's order intake fell by 12.5% year-on-year to EUR 2.8 billion, while sales declined by 19.4% to EUR 2.6 billion. "Thanks to the rapid implementation of comprehensive safety measures and sophisticated logistics planning, we were able to serve our customers around the globe without any major interruptions. Nevertheless, corona has affected us globally in all areas, from production to customer service and supply chains to everyday working life. Thanks to strict measures, we are nevertheless emerging from this financial year net debt-free and with a stable financial position," said Peter Mohnen, CEO of Kuka, at the virtual annual press conference on March 25, 2021. Free cash flow in 2020 was 37 million euros, significantly higher than in previous years (2019: 20.7 million euros).

"Corona has influenced us globally in all areas, from manufacturing, customer service and supply chains to everyday working life," said Kuka CEO Peter Mohnen.

© Kuka Group

However, tighter structures are necessary in order to be prepared for a market that was already difficult before the pandemic and will only recover slowly, explained Mohnen. In order to stabilize the Group in the long term, Kuka implemented extensive cost-cutting and efficiency measures. Special effects from the measures, together with the coronavirus-related decline in orders and sales, led to a negative EBIT of -113.2 million euros (2019: 47.8 million euros).

Kuka made significant savings, particularly in indirect areas, but invested in research and development and thus in the future viability of the Group. R&D expenses increased to 178 million euros in 2020 (2019: 160.5 million euros). The EBIT margin fell from 1.5% to -4.4%. The two Kuka segments Swisslog and Swisslog Healthcare - experts in intralogistics and automation in hospitals and pharmacies - were the only two Kuka divisions with slightly positive EBIT in 2020.

Growth in China in all application areas

Robotics and automation are increasingly coming into focus - especially after the experience of the coronavirus pandemic. The Group's book-to-bill ratio rose to 1.08 (2019: 1.00), which indicates good capacity utilization in the medium term. The growth in the China business segment is particularly strong, with a book-to-bill ratio of 1.23 (2019: 1.00). Incoming orders in this segment also increased by 7.4% compared to the previous year and amounted to EUR 490.4 million.

The figures for Kuka's 2020 financial year presented during the virtual press conference on March 25, 2021.

© Kuka

"During the 2020 economic crisis, China was the only market to record growth. We were able to win orders and enter into partnerships not only in traditional areas such as automotive, but also in newer areas such as healthcare and the 3C industry," said Peter Mohnen. "We expect growth in China this year and have pushed ahead with specific developments such as the KR Scara and new types of small robots."

The company also expects the economic recovery to continue worldwide and anticipates higher sales and a return to positive EBIT in 2021. "Automation will be a winner in this crisis in the medium term," said Peter Mohnen. This will be reflected in a significant increase in demand. Despite the lockdown, incoming orders and turnover were up on the previous year's figures throughout the first quarter of 2021. In particular, EBIT is expected to be significantly better than in the same period of the previous year.

Mission 2030: Robotics and automation for everyone

The pandemic has given a massive boost to digitalization and the use of new technologies in numerous sectors, such as healthcare and e-commerce. These high-demand areas will continue to develop dynamically, also thanks to automation. "In the coming years, more and more people will be working with robots in more and more new areas. They all need to be able to handle these technologies quickly and intuitively," says Peter Mohnen. Kuka is now creating the conditions for this. The company is developing an easy-to-use operating system that will form part of an entire ecosystem and provide access to programs, apps, services and accessories. There will be an initial preview of this operating system at the virtual Hannover Messe in April. "We have set out to make robotics available to everyone. The entry threshold for automation will drop significantly. That is our mission by 2030," explained Peter Mohnen.