Annual press conference 2009

• Significantly higher expenses for R&D and capital spending for fixed assets

• Minor business development in 2009

• Measures taken for more competitiveness

Hanover/Detmold, 20 April 2009 | In comparison to the previous year, the Weidmüller Group increased its 2008 sales by six percent to a total of 533 million euros. At the same time, capital spending rose by 31 percent to 79 million euros. Weidmüller used 51 million euros of these for fixed assets, and 28 million euros for R&D (research and development). Above all, Weidmüller invested in products and solutions with a promising future as well as in production sites in Germany, China, Romania and the Czech Republic. In 2008 Weidmüller recruited 468 employees worldwide and employed 3,857 staff members at the end of the year.

There was a considerable increase in domestic business concerning modular terminal blocks, printed circuit board components (PCB) and electronics as well as the field of “Original Equipment Manufacturer” (OEM), rising by 6 percent to a turnover of 158 million euros. In foreign countries the Weidmüller Group achieved 70 percent of its turnover; the company increased its sales in Europe (without Germany) by three percent to 259 million euros. With an increase of 22 percent the region Asia/Pacific showed the strongest growth within the Weidmüller Group. In 2008 the sales came up to about 82 million euros.

For 2009, the manufacturer of electrical connectivity and electronics is expecting a significantly lower business development. “Having had a really positive year, we expect the year 2009 to become one of the most difficult business years. The challenges associated with this fact, however, open new ways to prepare the company for the future,” says Harald Vogelsang, CFO of the Weidmüller Group, during the press conference in Hannover.

Due to the tough global economic situation and the considerable drop in orders concerning customers in the field of engineering industry and electrical and electronics industry, Weidmüller reckons with a reduction in sales of more than 20 percent. “At the moment there seems to be neither a tendency towards an economic pick-up nor a reversal of the trend. In view of the ongoing weakness in demand we have resolved upon comprehensive measures in order to ensure the competitiveness and future viability of our company,” says Dr. Joachim Belz, spokesman of the board of the Weidmüller Group.

The three-pillars-programme initiated at the beginning of the year adjusts the cost structures to the economic general framework and simultaneously provides a basis for a quicker implementation of the corporate strategy 2020. The purchase offensive “Power 15”, focussing of investments and expenditure as well as measures concerning human resources count among the steps taken. Cost reductions are specifically dealt with regarding strategic aspects and are accompanied by measures securing the future. That way expenses for research and development as well as investments for new products and expenditures can further on be kept on a high level in the comparison of industry sectors. In addition, raising efficiency in the product development process and during production, makes a contribution to competitiveness. At the same time the company anticipates a major product offensive due to last year’s staff structuring in the development departments worldwide.

Weidmüller sees a positive development due to expansions in China and Russia. With a 38 percent growth in sales, the company had its hitherto most successful year in China. The projects “Three Gorges Dam” near Yichang and “Fuchun Refinery” with a yearly production of ten million tons played a role in this. Weidmüller supplied products for the electrical

installations. Further growth in sales could be achieved in the fields of railway technology and mechanical engineering industry. For 2009, China is once again supposed to report double-digit growth. For this aim the development centre in Suzhou, developing products for the local market, will be expanded. In Russia the Moscow representation will be reorganised as a group company, and further sales offices will open in the most important economic centres.

“With our high innovation potential and general international placement we are able to act during the economical crisis, and through the steps taken we will become more efficient and, above all, more competitive,” says Dr. Joachim Belz, spokesman of the board of Weidmüller.

“With our high innovation potential and general international placement we are able to act during the economical crisis, and through the steps taken we will become more efficient and, above all, more competitive,” says Dr. Joachim Belz, spokesman of the board of Weidmüller.

Further refinement of the business units

With the further refinement of the business units, their product range reflecting the interaction of energy, signals and data in industrial environments, Weidmüller considers itself being well-placed despite the difficult general conditions. Weidmüller’s Electrical Connectivity business unit focuses on structured networking of power, signal and data – from the switching cabinet through field wiring to the device itself. The Electronics business unit concerns itself with conditioning power, signal and data for industrial automation and developing devices that are able to communicate within a network architecture. Together, Weidmüller’s business units cover all levels of the industrial network infrastructure.

These two business units are complemented by the CSS (application-specific solutions) and OEM (Original Equipment Manufacturer) divisions. Weidmüller’s CSS division offers customers application-specific solutions and engineering services, using the resources of a worldwide network of Customer Application Centers. The OEM division provides individually customized product development. Weidmüller is ready to partner with customers and provide engineering expertise for comprehensive solutions – from in-depth consulting, through network design, up to and including solution selection or product development.

Hanover Trade Fair: Products and concepts for cost-minimising

At the Hannover Trade Fair 2009 Weidmüller exemplifies optimisation of process costs and processing times with the concept “automation in control cabinet building”. The robot-supported assembly of modular terminal blocks onto DIN rails, with holding, identifying and marking of the modular terminal block in one and the same process step, is the core of this concept. The robot is controlled by Weidmüller Raildesigner® Software with a direct interface to the superordinate CAE system (Computer Aided Engineering). The components that have to be mounted are structurally optimized for automated assembly. This is valid, too, for the design of the modular terminal blocks, which has been optimized as “process-fitting”.

Furthermore the company shows solutions for surge protection in the field and for secure power supply in decentralised automation. Thus Weidmüller products and concepts meet the challenges created by increasing need for rationalisation in industries worldwide and the demand for innovative automation solutions. In these surroundings Weidmüller considers itself to be well prepared to offer new applications and open new markets.