Annual Report

FOREWORD BY THE EXECUTIVE BOARD

DEAR SHAREHOLDERS, BUSINESS ASSOCIATES, EMPLOYEES AND FRIENDS OF SICK,

2019 was a turbulent year with difficult economic conditions, despite which our success story continued. The SICK Group grew during the 2019 fiscal year and gained market share. Overall, the demand for sensor products and solutions was also satisfactory in 2019. Orders received in the various business fields developed with differing intensity and, especially in the Logistics and Process Automation business fields, particularly positively. This again proved the importance of the SICK Group’s diversified positioning. Group sales grew by seven percent, within our forecast range. Digitalization continues its dynamic rise. We are well prepared for this, thanks to our high levels of agility and flexibility. We can react to new situations rapidly. We had already founded our Start-up Initiatives for this purpose two years ago, with the aim of driving forward new technologies in addition to our traditional automation business. We invested here again in 2019. How are the Start-Ups doing now? With an official mandate to think laterally, our Start-Ups are enthusiastically developing new concepts and solutions for our customers. The strategy is working: Visionary Start-Up management, and networking with existing Group departments create synergies and innovations. But it is not just the Start-up Initiatives that have achieved a lot since their founding. Innovations from all departments also help secure our future. We are particularly pleased that employees from all SICK departments join in and help seek out and master new innovations. Our good collaboration here is particularly helpful, and can be seen in a variety of projects described in this Annual Report.

Our customers experience the same challenges arising from rapid technical change and digitalization. This is an opportunity for us to take advantage of the new possibilities in tandem with our customers. Recognizing and exploiting opportunities to implement necessary changes rapidly and sustainably is an important prerequisite that enables us to support our customers in improving their efficiency. Companies that invest in digital technologies, and can use them intelligently, can react to changed economic conditions with flexibility. They are also better prepared for challenging times.

Sincerely yours,

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