A W O R L D

I N

T R A N S I T I O N

Annual Report 2019/20

BT U
R U
S IMN P E F S SG R O U P
FK I E E Y L DF SI G U R E S

Business divisions and business fields

E X T R E M E
U 2018/19
L T R A V I O L E T
2019/20 L I G H Change
T
from 2018/19
in percent
HIGH-POWER LASER SYSTEMS FOR
EUV LITHOGRAPHY
SALES REVENUES 3,784.0
TRUMPF has developed a 3,487.7
unique CO2 laser system in close–coop
7.8 e-
in million euros ration with ASML, the world’s largest manufacturer of lithogra-
phy systems, and optical system manufacturer ZEISS. High-power
lasers from TRUMPF play a key role in the production of the latest
TRUMPF Laser Amplifier
O R D E R I N TA K E generation
3,680.8 of microchips:3,278.2
they are used to generate a luminous
– 10.9
in million euros plasma that delivers extreme ultraviolet (EUV) light to expose the
wafers.

EBIT 349.3 309.1 – 11.5

in million euros
A D D I T I V E
M A N U F A C T U R I N G
EBIT MARGIN 9.2 8.9 –
in percent
ADDITIVE MANUFAC TURING FOR
I N N OVAT I V E C O M P O N E N T S

I NAdditive
V E S T Mmanufacturing
ENTS enables the simple production of complex
288.0 194.3 – 32.6
in parts. euros ’s TruPrint systems are used in airplane construction,
millionTRUMPF
medical technology, and the energy sector, for example. TRUMPF
masters both of the key metal-printing processes: laser metal fusion
(LMF) and laser metal deposition (LMD). This means it can offer Tr u P r i n t 5 0 0 0
RESEARCH AND 395.8
customers the solution that best suits their application.
377.4 – 4.6
DEVELOPMENT COSTS
in million euros

B A L A N C E S H E E T TOTA L P 3,939.2
H O T O N I 3,903.3
C – 0.9
in million euros C O M P O N E N T S

EQUITY L A2,023.1
S E R D I O D E S F O R 2,061.4
PHOTONICS AND + 1.9
in million euros D I G I TA L P RO D U C T S

Laser diodes from the TRUMPF Photonic Components business field

are used in smartphones, digital data transmission, and sensors
E Q U I T Y R AVTCI SOE L a n d 51.4
for autonomous driving. Over52.8
a billion cell phones worldwide–are
in percent
photodiode arrays already equipped with this laser diode technology.

ECONOMIC EQUIT Y* 2,210.6 2,315.2 + 4.7

in F I Neuros
million A N C I A L S E R V I C E S

C O M PA N Y- O W N E D F U L L - S E R V I C E
E CBO
ANNO
KM I CR EPQ
FO UU I THYA SREA T
RC LOI OA N S 56.1 59.3 –
in percent
Along with their quote for a machine, TRUMPF customers also
receive a lease or hire purchase offer. Our custom-tailored finance
solutions are based on financing experience and expertise in the
EMPLOYEES ON JUNE 30 14,490
mechanical engineering industry. The TRUMPF bank is now avail-
14,325 – 1.1
number
able in nine European countries. For other core markets such as
Finance concepts for
the US and China, TRUMPF collaborates with partners.
state-of-the-art
production technology

* Equity capital plus long-term loans from partners

G E R M A N W A N K M I L L E R H A M S A V E N U G O P A L A N
G RO B - W ER K E Gmb H & Co. KG U N I V ER S A L EN G I N EER S CH EN N A I P V T. L I M I T ED
(M ind elheim, G er many) (Chennai, I ndia)

M A R C O G R I L L I R O L A N D T E M M E
O mas S .p.a. T M CO I nc.
(N umana, I t al y) (L incoln, N E, US A )

Annual Report 2019/20

B U S I N E S S B U S I N E S S
D I V I S I O N S F I E L D S

Business divisions and business fields

E X T R E M E
U L T R A V I O L E T L I G H T

HIGH-POWER LASER SYSTEMS FOR

EUV LITHOGRAPHY

TRUMPF has developed a unique CO2 laser system in close coope-

ration with ASML, the world’s largest manufacturer of lithogra-
phy systems, and optical system manufacturer ZEISS. High-power
M A C H I N E T O O L S lasers from TRUMPF play a key role in the production of the latest
TRUMPF Laser Amplifier
generation of microchips: they are used to generate a luminous
plasma that delivers extreme ultraviolet (EUV) light to expose the
MACHINE TOOLS FOR FLEXIBLE SHEET wafers.
M E TA L M A N U FAC T U R I N G

TRUMPF’s largest division involves machine tools for

flexible sheet and pipe machining. Our portfolio encom- A D D I T I V E
passes systems for bending, punching, combined punch M A N U F A C T U R I N G
laser processes, and for laser cutting and laser welding
tasks. We offer our customers tailor-made machine,
automation and networking solutions, as well as advice, ADDITIVE MANUFAC TURING FOR
finance and numerous services, so that they can manu- I N N OVAT I V E C O M P O N E N T S
facture their products cost effectively, reliably and in
high quality. With our software solutions, we assist them Additive manufacturing enables the simple production of complex
Tr u L a s e r 5 0 3 0 f i b e r parts. TRUMPF’s TruPrint systems are used in airplane construction,
in all their machining tasks, from design to complete
production control. medical technology, and the energy sector, for example. TRUMPF
masters both of the key metal-printing processes: laser metal fusion
(LMF) and laser metal deposition (LMD). This means it can offer Tr u P r i n t 5 0 0 0
customers the solution that best suits their application.
L A S E R T E C H N O L O G Y

L ASERS FOR MANUFAC TURING P H O T O N I C

TECHNOLOGY C O M P O N E N T S
Cutting, welding, marking, surface machining: we have
exactly the right laser for every industrial application, LASER DIODES FOR PHOTONICS AND
as well as the right technology to ensure innovative and D I G I TA L P RO D U C T S
yet cost-efficient production. For work at macro, micro
or nano level – we take an individual approach to Laser diodes from the TRUMPF Photonic Components business field
our customers’ needs and are at their side offering are used in smartphones, digital data transmission, and sensors
system solutions, software tools, application expertise, VCSEL and for autonomous driving. Over a billion cell phones worldwide are
and advice. photodiode arrays already equipped with this laser diode technology.

Our Electronics field offers process power supply units

for high-tech applications. Our generators provide
Tr u D i s k R e s o n a t o r (12 k W ) electricity for induction heating and plasma and laser
F I N A N C I A L S E R V I C E S
excitation, with precisely the right frequency and power
our customers require. C O M PA N Y- O W N E D F U L L - S E R V I C E
BANK FOR PURCHASE LOANS

Along with their quote for a machine, TRUMPF customers also

receive a lease or hire purchase offer. Our custom-tailored finance
solutions are based on financing experience and expertise in the
mechanical engineering industry. The TRUMPF bank is now avail-
able in nine European countries. For other core markets such as
Finance concepts for
the US and China, TRUMPF collaborates with partners.
state-of-the-art
production technology
G E R M A N W A N K M I L L E R H A M S A V E N U G O P A L A N
G RO B - W ER K E Gmb H & Co. KG U N I V ER S A L EN G I N EER S CH EN N A I P V T. L I M I T ED
(M ind elheim, G er many) (Chennai, I ndia)

M A R C O G R I L L I R O L A N D T E M M E
O mas S .p.a. T M CO I nc.
(N umana, I t al y) (L incoln, N E, US A )

Annual Report 2019/20

02 A W ORLD I N TRA N S ITIO N

E d i t o r i a l
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A W O R L D

I N

T R A N S I T I O N

“A world in transition”: When we chose the motto for our annual report, no one had any
idea of the dimensions these three words would assume in the months that followed. New
competitors – especially in Asia –, changing business models, increased digitalization, more
sustainability: these were the dominant coordinates of change. Then the coronavirus came
along and changed everything. The formidable challenges resulting from structural changes
in many sectors were intensified as a “crisis within a crisis”. And this is still happening.

TRUMPF had decided, while taking stringent safety precautions, to keep large parts of
its production and services running even during the particularly critical weeks in March
and April 2020; first of all in business fields with high turnover such as EUV technology and
electronics. In retrospect, this step was the right one, as this was the only way that we were
able to achieve a positive business result.

With just under 3.5 billion euros, our sales suffered a noticeable fall of –7.8 percent compared
to the previous year (3.8 billion euros) – just like our order intake, which fell by –10.9 per-
cent to around 3.3 billion euros (previous year 3.7 billion euros). Our operating result also
fell by 11.5 percent to 309 million euros (previous year 349 million euros). Nevertheless, at
8.9 percent (previous year 9.2 percent), the rate of return was above the level we ourselves had
expected for most of the year. This was due to the consistent measures to improve earnings
that we had already implemented as part of our “Koyer” program long before coronavirus,
when in many places there was still no talk of a “crisis”. Although as a manufacturer of
capital goods, this was not true for us.

Despite the economic consequences of the coronavirus pandemic, there is reason to look ahead
with the necessary seriousness but also with confidence. First and foremost our employees
deserve to be acknowledged here, as well as our worldwide customers and business partners
who have remained loyal to us in recent months. I would like to give them my special thanks
for their commitment and loyalty!

You can see four of them on the cover of this annual report. They represent all those partners
with whom TRUMPF is shaping this world in transition. How we aim to achieve this is set
out on the following pages. Given the rapid increase in digital formats, I hope you find this
hard-copy report a stimulating read.

Y O U R S S I N C E RL Y N I C OLA L E I B I N G E R - K A M M Ü LL E R

E d i t o r i a l
04 A W ORLD I N TRA N S ITIO N

C O N T E N T S

05 A W O R L D I N T R A N S I T I O N

33 T H E C O M P A N Y

C O R P O R A T E
41 R E S P O N S I B I L I T Y

G R O U P M A N A G E M E N T
49 R E P O R T

C O N S O L I D A T E D
83 F I N A N C I A L S T A T E M E N T S

124 I M P R I N T
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A W O R L D

I N

T R A N S I T I O N
06 A W ORLD I N TRA N S ITIO N
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A Y E AR O F S TA N D S TILL
AND OF CHANGE.
Four reports on how our customers
experience change worldwide. And how
TRUMPF helps them to be successful.
08 A W ORLD I N TRA N S ITIO N

G E R M A N W A N K M I L L E R
G RO B - W ER K E Gmb H & Co. KG

G RO B - W E R K E G mb H & C o . K G
A N N U AL R E P ORT 2 0 1 9 / 2 0
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T H E E L E C T R I C

C A R E X P E R T S

F R O M A L L G Ä U

The future of the car industry is being created amidst 70,000

cows. AUTOMOT IVE EQUI PMENT SUPPLIER G ROB is based in
Unterallgäu, the region with the highest milk production in
Bavaria. In order to move away from the combustion engine,
GROB took a bold path at an early stage. The company owes
its current success in electromobility to a far-sighted strategy,
motivated employees, and its partnership with TRUMPF.

G RO B - W E R K E G mb H & C o . K G
10 A W ORLD I N TRA N S ITIO N

Despite approximately 1.3 billion euros in turn-

over, GROB, a long-established company from
Mindel­heim, is probably known only to indus-
try insiders. A hidden champion, whose home
lies between picture-book villages like Apfel-
trach and Pfaffenhausen in the Unterallgäu
district of Swabia, Bavaria. Far away from
Wolfsburg, Stuttgart or Munich, the Southern
German company is a model for radical change
in the German automotive industry. According
to the German Association of the Automotive
Industry (VDA), around 75 percent of this
industry is made up of small and medium-sized
German companies – companies that supply
body parts or build paint shops. Thanks to
sophisticated combustion engines made in
Germany, there was only one thing that these
companies knew for decades: growth.

That is, until the diesel crisis made them all

gaze into the abyss. Car companies reduced
their investments in the combustion engine,
sales slumped, and tried and tested technol-
ogies were threatened with extinction. At
GROB, the diesel crisis caused a large part of
the business to falter.

E L E C TRO M O B ILIT Y I S C O M I N G
Anyone who wants to understand what this
change in mobility feels like for a medi-
um-sized company with a turnover in the bil-
lions will find in German a discussion partner
who grew up in the old world. “We generated
more than 90 percent of our sales in the auto-
motive industry from internal combustion
engines and transmissions. What we had built 1 1 _  Welding and testing: Before
up over decades, what the whole company the hairpin stators leave the plant,
was geared towards, has broken away to a cer- robots rule out even the smallest
tain extent. This not only affected our prod- errors.

ucts, but also the structures and processes in 2 _  GROB also manufactures
milling machines for mechanical
the company. The change was incredibly stress-
engineering. The photo shows a
ful for the company in the beginning and is
drill bit that has produced a
still a burden today,” comments GROB’s CEO. 5-axis universal machine center.
MACHINE FLEET

And yet German, who joined GROB 31 years

ago as assistant to the production manage- W ID E ARRA Y O F LA S E R S
ment, clearly sees the technological upheaval GROB has been purchasing ma-
as an opportunity: “We recognized right from chines and systems from TRUMPF,
the start that electromobility cannot be especially laser technology, since
2005. Today the company uses
stopped. We wanted to be the first to master
the latest models of these laser
this technology to build up a competitive edge.
machines for electromobility.
We have always been convinced that this was
the right thing to do for the future – because ·  2D laser machines
GROB has mastered a technology that will be ·  TruDisk disc lasers
in great demand over the next ten years.” · TruMicro short and ultrashort
pulse lasers
·  TruMark marking laser
/ FAC TS

G RO B - W E R K E G mb H & C o . K G
A N N U AL R E P ORT 2 0 1 9 / 2 0
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S E TTI N G T H E P A C E
For over 90 years, the GROB
family business has been
building highly innovative
production and automation
systems for a wide range of
industries. These include:
PRODUCTS

·  System solutions
· Universal machining
centers
·  Assembly systems
· Machines and systems
for electromobility
· Automation and
software solutions
/ FAC TS

“THE CHANGE WAS

I S T H E B U S I N E S S M OD E L C OLLA P S I N G ? I N C R E DI B L Y S TR E S S F U L
To better understand GROB’s transformation, F OR T H E C O M P A N Y I N
it is worth accompanying German on a jour- THE BEGINNING AND IS
ney through time to the year 2014. Back then, S TILL A B U RD E N TODA Y . ”
as it did every year, Volkswagen invited its
strategic suppliers to Wolfsburg. In a presen-
tation, the VW’s Board of Directors outlined
their plans for the next few years. German
couldn’t get it out of his head. “I said to myself
at the time: If VW’s assumptions are right, our
business model will collapse and we will have
to do something else. That was the crux of the N O M OTI V ATIO N – N O C H A N C E
whole thing,” he explains, looking back. Doz- In 2016 the time had come. Back then, only
ens of employees in the company subsequently 11,410 electric cars were registered in Germany.
investigated which technologies were affected And in Mindelheim, Bavaria, GROB launched
by the assumptions, which products the mobil- perhaps the biggest program of change in cor-
ity of the future required, and which technol- porate history. “It was difficult to convince our
ogy actually suited the company. “The own- employees at the time because our change in
ers and those of us in management first had strategy meant that their jobs, the work that
to agree on whether – and if so, how precisely they were doing, and the requirements were
– our analyses would come to pass. From pol- totally altered. None of this is pleasant for the
itics to business to science, there were differ- workforce. We all had to get out of our com-
ent opinions about it everywhere. This entailed fort zones, abandon our old ways, and start
a certain amount of risk.” something new. This caused a lot of anxiety
and worry,” says German. He countered these
concerns with data showing what customers
around the world will be demanding in future.
But above all with countless discussions: “It
has always been important for us to have the
entire workforce approach this issue with moti-
vation and commitment – otherwise we don’t
stand a chance.”

G RO B - W E R K E G mb H & C o . K G
12 A W ORLD I N TRA N S ITIO N

3 _  Systems from GROB can be

used to produce hairpin stators
in various sizes. The machines
do not require a tool change
and even facilitate single piece
production.
4 _ An electrical start-up tech-
nician examines the data from
a machine for welding hairpin
stators using laser beams.

LO N G - S TA N DI N G
P ART N E R S H I P
GROB purchased its first bending

COLLABORATION
machine from TRUMPF in 1992.
By the end of the 90s, the com-
pany had also acquired several
laser cutting machines. It was to
become a long-term partnership,
as GROB in turn supplies TRUMPF
4
with machining centers.

E L E C TRI C DRI V E I N S T E AD

 28
OF STEEL MACHINING
In 2020, there has been little sign of those
tough initial times at the GROB factory prem-
ises. Today, Hall 2 is home to the technology
and application center for the manufacture
of electric motors. The former sheet metal
/ FAC TS

workshop is one of the oldest buildings on the

factory site. Where machine fitters once
produced sheet metal cladding, mechanical Y E AR S
engineers, software developers and electrical
engineers are now ensuring that electric
cars pick up speed all over the world. The com-
pany’s 50 or so employees work on one early
and one late shift to design, develop and build
prototypes and pre-series for the stator: the A P O W E R H O U S E F OR 1 M ILLIO N
technological heart of every electric motor, E L E C TRI C M OTOR S
without which it would be unable to rotate. In the middle of the former sheet metal work-
shop there is now a production plant costing
German notes: “We attach great importance several million euros. A high-tech powerhouse,
to innovation. As a German company we can consisting of robots, lasers, and screens. René
and must hold our own on the world market Schürer, team leader in the New Technologies
through technology. For us, a basic rule has division explains: “We have built this proto-
always been to take a critical look at ourselves type for our customers. When they launch
– to see where we stand and what we have to a new electric vehicle on the market, they
do. In the field of electromobility, we have can test the highly complex production tech-
worked out where we can set ourselves apart nology here before ordering a system for
from standard suppliers. Because we would large-scale production.” Later, at the vehicle
not have been able to win this kind of price manufacturer’s, the system spits out a stator
competition.” every 30 seconds. Running around the clock,
this would correspond to 2,880 units per day
and around one million per year.

The technological centerpiece of the stator is

a copper coil, which provides the movement.
So that they can be mass produced, GROB

G RO B - W E R K E G mb H & C o . K G
A N N U AL R E P ORT 2 0 1 9 / 2 0
13

offers customers the so-called ‘hairpin’ pro- lack of experience.” During this time, GROB
cess. During this process, the system pushes employees came and went at TRUMPF almost
copper wires similar to hairpins into the sta- weekly. In the world’s largest laser laboratory,
tor. It then twists the wires into each other the “Laser Application Center” in Ditzingen
and welds them together using a TRUMPF (Germany), they experimented together with
laser. This creates a coil – in a fully automated TRUMPF experts on welding technologies
process. for the new world. After six months GROB
bought the first machine and set it up
“The whole thing takes only a few seconds. in Mindel­heim. “At TRUMPF, the products, pro-
The TRUMPF laser optics move into position cesses and quality have matched for decades.
and detect with the help of a camera whether Since electromobility has begun to take off,
the laser is positioned correctly. It then welds the company has become even more central
the pins together within 0.1 to 0.3 seconds,” to our business. For us, TRUMPF was one of
explains technology expert René. the first companies that could deliver the
machines – meaning that we could develop
TR U M P F W A S T H E F IR S T TO D E LI V E R the best solutions worldwide,” says German.
The collaboration with TRUMPF was arranged At GROB’s headquarters, 1,000 employees,
by a car manufacturer, who pointed out that almost one in four, are now working on elec-
the international laser technology manufac- tromobility.
turer had the most knowledge in this area.
Indeed, the quality requirements in the auto- DI G ITAL LA S E R P U L S E TRA C K I N G
motive industry are extremely high: Zero failure In the future, it is intended that GROB systems
rate, same performance as the combustion will record even more quality data digitally.
engine, production facilities worldwide to “We want to track the welds on the stators
exactly the same standard. German explains: one hundred percent. To do this, we use the
“The automotive industry was only just start- data from the beam source (on the duration
ing out in the field of electromobility, and we of the laser pulse, for example), the laser out-
as a plant manufacturer were right in the put, and the welding times. Together with the
middle of it. Everyone had the feeling that images from the camera, we can track the pro-
contracts would never be finished properly duction of each stator in detail even after ten
because there were always changes due to the years. If a value is not verifiable during the
final inspection, we can see immediately
whether it was due to the welding and if so,
what exactly caused it,” says René. He already
knows who the partner for this project will
be: “I can always call TRUMPF and ask for
assistance at short notice. Over the years, our
relationship has gone from strength to
strength, and now we’re more like friends.
And that’s how it will remain in future.”

5 _ René Schürer, team leader in

the New Technologies division,
operates a TRUMPF laser in a
prototype system for hairpin
stators.

G RO B - W E R K E G mb H & C o . K G
14 A W ORLD I N TRA N S ITIO N

M A R C O G R I L L I
O mas S .p.a.

Om a s s . p . a .
A N N U AL R E P ORT 2 0 1 9 / 2 0
15

T H E D I G I T A L S H E E T

M E T A L P I O N E E R

F R O M I T A L Y

No expertise, no specialists, not even Internet: outside large Italian

cities, networked factories are a rare sight. MARCO GRILLI, whose
company OMAS produced accordion parts by hand, didn’t want
to accept this. Without further ado, he invested in connecting
to the fiber-optic network in order to give his company a solid
footing for the future. With the assistance of TRUMPF, he estab-
lished one of the most digitalized production facilities in Italy on
the Adriatic coast – and thus played his part in ensuring the
future sustainability of the coronavirus-stricken country.
Om a s s . p . a .
16 A W ORLD I N TRA N S ITIO N

Numana, the picturesque coastal town with 60 percent of companies don’t have adequate
a population of 4,000, is just twelve kilo­meters expertise in the field of digitalization – accord-
away from the motorway spanning the length ing to the results of an investigation carried
of Italy’s Adriatic coast. The sheet metal out by the Florence Chamber of Commerce in
manufacturer Omas (Officine Meccaniche Alta 2019. Omas isn’t one of them: Marco and his
Specializzazione) is headquartered there; it is team started digitalizing the company ten
one of the most digitalized companies in Italy years ago. “In the production of the future,
in the field of production. “Italy lags years processes will be managed and controlled dig-
behind when it comes to digitalization. We itally. This will help us to work more quickly,”
paid for fiber-optic cables to be laid ourselves,” says Marco.
states company head Marco. The neighboring
town of Castelfidardo was once famous for
its accordions and Omas used to produce parts
for them. However, 80s electronic music
destroyed the demand for hand pull instru-
ments. There are now 40 robots on the digi-
tally networked company site. Supervised “ I N T H E P ROD U C TIO N O F
by 120 employees, they produce precision T H E F U T U R E , P RO C E S S E S
frames for companies such as Bosch, Honda, W ILL B E M A N A G E D A N D
Technogym, and other groups from Italy and C O N TROLL E D DI G ITALL Y .
Europe. T H I S W ILL H E L P U S TO
W OR K M OR E Q U I C K L Y . ”
I N D U S TR Y 4 . 0 F OR T H E F U T U R E O F ITAL Y
According to the official statistics office, only
32 percent of all companies in Italy had a fast
Internet connection in 2018. 300 kilometers
away in Florence, the largest city in the region,

Om a s s . p . a .
A N N U AL R E P ORT 2 0 1 9 / 2 0
17

1 _  Many machines are directly

connected to a high-bay ware-
house with 1,000 storage places.
2 _  Employees can focus on their
work around machine in the
production hall. The jobs are
programmed by their colleagues
in the office.
3 _  In order to produce precision
frames for various manufacturers,
Omas uses machines for tube and
sheet metal processing.

THE NEXT LEVEL

O F N E T W OR K I N G
Marco has been sourcing his
machines for sheet metal and
tube processing from Ditzingen
for twenty years. In Numana, he 3
now has a total of 21 TRUMPF
COLLABORATION

machines in use in production.

T H E W H IT E F L Y F RO M N U M A N A
The businessman finances many
of these machines using the Omas, with its 120 employees, is not your typ-
TRUMPF Bank. Omas is an im- ical Italian sheet metal producer. “We are an
portant partner for TRUMPF’s exception in our industry – in Italian you would
Italian subsidiary in Milan when it call us ‘a white fly’,” says Marco. He estimates
comes to explaining the benefits that companies in the field of sheet metal pro-
of Industry 4.0 to other custom- cessing have around 25 employees on average.
ers. Marco is more than happy to Omas doesn’t just supply local companies with
open up his doors and let others
its range. “Our customers are from all over
take a look at his smart factory.

20
Europe and are making increasing use of digi-
tal systems. They are looking for suppliers that
have the same qualities. We therefore have to
make sure that we don’t fall behind,” he states.
Marco describes himself as an engineer; he pays
little attention to politics.
/ FAC TS

Despite this, he wants Italy to be able to push

Y E AR S forward the entire industry and make it fit for
the future. “Companies were able to save on
tax through previous government programs.
Instead of tax breaks, I would have liked to
see investment in infrastructure to help speed
up digitalization,” states Marco. He personally
invests ten percent of his revenue expanding
his smart factory every year.

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18 A W ORLD I N TRA N S ITIO N

S O F T W AR E I N S T E AD O F P A P E R
A visit to the TRUMPF headquarters a few years
ago provided the impetus to further develop
Omas digitally. Marco travelled to Ditzingen
together with his team. “We were ahead of
our government in visiting TRUMPF. We were
told at the time that a delegation of Italian
politicians had announced a visit, but only two
months later,” he recalls. Shortly afterwards,
a team of advisers from TRUMPF visited him
in Numana in order to explore what the right
strategy for Omas would be. Marco and his
team knew from the very beginning what they
wanted: lean processes and to do away with
laborious paperwork. Software was a key
issue: “It is important to Omas that we have
a consistent software architecture that can be
used to retrieve information and data any-
where. We can use this software to work with
utmost flexibility. Regardless of whether it’s 4
a bending machine or laser system, the oper-
ator can retrieve all important information
and get started with their work right away,”
says Marco.

20 PERCENT FASTER
Paper is almost a thing of the past now at
Omas. All 21 bending and cutting machines
use TRUMPF software. A team of experts pro-
grams them on their computers in the office. 5
The operator on the production floor is able
S H E E T M E TAL
P E R F E C TIO N I S T
Omas produces products including
“ IT I S I M P ORTA N T TO precision frames using machines
O M A S T H AT W E H A V E A from TRUMPF. Furthermore, it of-
fers the following services to its
C O N S I S T E N T S O F T W AR E
customers:
AR C H IT E C T U R E T H AT C A N
B E U S E D TO R E TRI E V E
· S urface treatment and satin
PRODUCTS

I N F OR M ATIO N A N D DATA finishing of metals

ANYWHERE. WE CAN · Construction of molds, fixtures,
U S E T H I S S O F T W AR E TO and tools
W OR K W IT H U T M O S T · Assembly and final assembly
F L E X I B ILIT Y . ”
/ FAC TS

to fully concentrate on the machine. In addi-

tion to software, the company recently invested
over a million euros into an ERP system that
can be used to plan every move the company
makes. “That’s a huge amount for a company
4 _  The robots perform
in the field of sheet metal processing,” says
routine tasks and relieve
Marco. His company’s revenue amounted to
the strain on production
28 million euros in the most recent year. “We employees.
are now 20 percent faster. We have a reputa- 5 _  Over 40 production robots
tion as a pioneer and a role model. In reality, work in the manufacturing
we are simply doing what the market demands process at Omas. This amounts
of us, without worrying about what other peo- to one robot for every three
ple are doing,” says Marco. employees.

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A S P E C IALI S T F OR
A S H AR E D J O U R N E Y O F P RO G R E S S A N Y A P P LI C ATIO N
The company is also making significant invest- Omas can handle every process
ments in the area of training. They have a dedi­ step when it comes to sheet metal
cated training program for various areas of processing with its machinery.
Three years ago, the company
application which every new employee has to
expanded its range and now pro-
go through. It’s not just Marco that travels far
cesses both flat sheet metal and
and wide throughout Europe to look at com- three-dimensional parts.
panies that Omas can use as an example – he
also takes his team with him. For example, to · 2D laser machines from the

MACHINES
TRUMPF in Ditzingen to receive further train- TruLaser Series 5000
ing. After all, they have a huge amount of say, · TruLaser Cell 7040 3D cutting
particularly regarding new technologies. “I have and welding system
the last word when it comes to strategies invest- · Bending machines from the
ments, but the team decides what system we TruBend Series 5000
· Laser tube cutting machines of
want to invest in,” states the company head.
the type TruLaser Tube 7000
The company has been investing in providing
and TruLaser Tube 5000
further training to the workforce with respect · TruMatic 6000 punch-laser

/ FAC TS
to digital topics for years, in order to ensure machine
they have the latest, most up-to-date knowl-
edge. “Of course, changing over to digital pro-
duction was easier for some employees than
others, but we had a common goal and were TruLaser Center 7030 full-service laser machine;
all pulling in the same direction,” states Marco. it is intended assist employees by using artifi-
cial intelligence. “We have been dealing with
A S M ART F U T U R E the issue of AI at the company for a while
The stage has already been set for the imme- now,” states Marco. His company has also just
diate future. The next investment will be the invested in corresponding simulation software.

Om a s s . p . a .
20 A W ORLD I N TRA N S ITIO N

H A M S A V E N U G O P A L A N
U N I V ER S A L EN G I N EER S CH EN N A I P V T. L I M I T ED

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O N T R A C K T O

B E C O M I N G A

W O R L D L E A D E R

5,000,000,000,000 – five trillion US dollars. This is the Indian

government’s goal for the country’s economic output by the
year 2024/25. India is one of the countries representing the
transformation of the worldwide economy through globaliza-
tion. According to the Indian media, an important project of
the government is the modernization of rail transport. HAMSA
VENUGOPAL AN, Managing Director of UNIVERSAL ENGINEERS, is
one of few women in the Indian sheet metal processing industry
involved in this, and uses TRUMPF machines to provide for the
new world power’s rail traffic.
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22 A W ORLD I N TRA N S ITIO N

S E R V I N G T H E RAIL W A Y
I N D U S TR Y – A N D M OR E
In the 1980s and 90s, Hamsa was
involved in trading of electrical
and electronic components. In
1 2002, Universal Engineers was
established as a supplier for
PRODUCTS
the domestic railroad industry.
Universal Engineers has been
producing parts for railcars for
nearly 20 years.

·  Bodies for railcars

·  Wagon interiors
The Indian Railway – or the “nation’s lifeline”,
as Indians call it – traverses the country on an
/ FAC TS

outdated rail network. To achieve its ambi-

tious growth plans, the government wishes to
electrify the 75,000 miles of track, as reported
in the Indian media. Over the next few years,
countless new railcars will roll off the produc-
tion lines of Indian manufacturers.

A N ATIO N AT A T U R N I N G P OI N T
The new trains will not just be the locomotives
driving the economy as a whole – for many of
the country’s inhabitants, they are also the
symbol of a new, modern India. “With the share in this. For Universal Engineers, this is
trains, people see what they desire: modern an opportunity to be acknowledged as a man-
technology and comfort. Our country is cur- ufacturer of world class railcars,” says Hamsa,
rently at a turning point. The infrastructure, age 56. Universal Engineers has been equip- 4
in particular, is undergoing enormous change,” ping trains for nearly 20 years now. In 2002,
says Hamsa. Her company, Universal Engineers, the company employed just seven people; now
is based in the financial metropolis of Chennai, it has a workforce of 1,300. And thanks to the
where it produces body parts such as walls, government’s reform plans, there is no end in
roofs, doors, and windows for railcars, but sight for its growth. The company is also amply
also the interior fittings for cars. preparing itself for new orders: “Expectations
for design, technology, comfort and safety
W ORLD C LA S S RAIL C AR S F RO M I N DIA have utterly transformed in recent years. So
Hamsa expects her company to play an import- we are now facing new challenges. We have
ant part in the railroad reform plans: “The to increase our production capacity while
government wishes to increase stock and get simultaneously keeping an eye on production
new trains and subways in place. And they costs,” says Hamsa. The company also intends
have to be produced, operated, and serviced to provide training to prepare its employees
by somebody! We expect that we will have a for the forthcoming work.

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A LA S E R - LI K E F O C U S O N
C OLLA B ORATIO N
Hamsa first met representa-
COLLABORATION tives from TRUMPF in 2014,
when she was on the hunt for
a laser cutting machine. Thanks
to the TruLaser 3030, U­ niversal
Engineers was able to get its pro-
duction up and running.

6
/ FAC TS

3
Y E AR S

1 _  The outer panels of the

railcars require different types
of welding.
2 _  Universal Engineers is
supplying this railcar front
end to Integral Coach Factory,
India’s largest manufacturer
of passenger cars.
3 _  Universal Engineers wishes
to increasingly automate
processes to keep up with new
orders.
4 _  Six years ago, Hamsa was
on the hunt for a laser cutting
machine. Today, Universal
Engineers uses the TruLaser 3030
in its production.

LA S E R E X P E RT
“ O U R C O U N TR Y I S As well as a 2D laser cutting
C U RR E N TL Y AT A machine from TRUMPF, the com-
T U R N I N G P OI N T . T H E pany uses a TRUMPF disk laser for
MACHINES

welding processes.
I N F RA S TR U C T U R E ,
I N P ARTI C U LAR , I S
· TruLaser 3030 2D laser
U N D E R G OI N G
cutting machine
E N OR M O U S C H A N G E . ” ·  TruDisk disk laser
/ FAC TS

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24 A W ORLD I N TRA N S ITIO N

F RO M DOOR H A N DL E S TO E X T E RIOR P A N E L S
In the last fiscal year, Universal Engineers sup-
plied body assemblies on a large scale to Inte-
gral Coach Factory (ICF) in Chennai. ICF is India’s
biggest manufacturer of passenger cars and
belongs to the state-owned Indian Railways
company. The company placed its first order
with Universal Engineers in 2002: door handles
for the on-board lavatory! Back then, India’s
GDP was around 500 billion US dollars. In 2019,
it has reached some 2.9 trillion US dollars
according to a report by the World Bank, and
bigger things than external railcar panels are
at stake. “This order gives us the opportunity
to improve ourselves and to contribute to the 6
further development of the railway industry.
We are part of the change that is currently
sweeping through our country. And that is
something we can really be proud of,” says “ W E AR E P ART O F
Hamsa, who has managed the company for T H E C H A N G E T H AT I S
nearly 20 years. C U RR E N TL Y S W E E P I N G
T H RO U G H O U R C O U N TR Y .
TR U M P F S P E E D S T H I N G S U P A N D T H AT I S S O M E T H I N G
To deliver first-class quality, the company also W E C A N R E ALL Y B E
relies on machines from TRUMPF. “These P RO U D O F . ”
machines have helped us to speed up. Our cus-
tomers are very happy with the results,” says
Hamsa. A 2D laser machine cuts the stainless
steel parts for the railcars precisely to size,
while a solid-state laser welds the outer
panels. “We are increasingly automating our
production and improving our processes,” adds
Hamsa. She was able to increase production
efficiency by 30 percent in 2019 alone.

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5 _  1,300 employees are currently

working in the company in
Ambattur in the west of Chennai,
E N H A N C I N G T H E ROL E O F W O M E N A S South India.

MANAGERS 6 _  Universal Engineers wants to

employ 10,000 workers in 2025.
Hamsa is an exceptional person, as very few
companies are run by women in India. “The gov-
ernment has initiated several programs to
encourage female entrepreneurs and boost their
image as managers in society – and this is a good
thing,” says Hamsa, who originally wanted to
become a doctor. “What mattered was simply
to build a good team. A team that meets not
just its business obligations to its employees,
but also its social responsibility,” she says. Today,
her job has become her passion.

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26 A W ORLD I N TRA N S ITIO N

R O L A N D T E M M E
T M CO I nc.

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R E C R U I T I N G

T H E B E S T I N

N E B R A S K A

During the coronavirus pandemic, the US temporarily recorded

more than 30 million unemployed. Yet if we take a long-term
outlook, we find that many companies in fact have a real need
for specialist staff – particularly in locations far from the meg-
acities. However, TMCO in Lincoln, Nebraska, is bucking this
trend. It is owned by ROL AND TEMME, whose secret to success
lies in a great memory for names, trips to Chicago, and a full-­
service laser machine from TRUMPF.
T M C O Inc .
28 A W ORLD I N TRA N S ITIO N

Roland can tell you a thing or two about recruit- 1 _  Back in 1977 the company
ing new staff. When he founded TMCO (The had just a single employee.
Total Manufacturing Company) in Lincoln, Today, TMCO employs just
Nebraska back in the 1970s, the company com- under 200 people.

prised just him plus two machines from the First 2 _ Automation is the key to
growth. In future, all laser
and Second World Wars. This one-man machine
and punching machines will
shop has now grown into a company with doz-
be connected to the high-
ens of machines and employing just under 200 bay warehouse.
staff. Roland never struggled to find suitable
specialist staff – even though the unemploy-
ment rate in Lincoln was less than three percent
before the coronavirus pandemic hit, and
despite the fact that specialist staff for process-
ing sheet metal are hard to find. The USA does 2
not have a government-run training system sim-
ilar to the one in Germany, for example – so
many companies are forced to train their staff
themselves. To help them with this challenge,
TRUMPF offers training courses at a number of
sites in the USA. Young Americans tend to favor A COMPREHENSIVE
jobs in the service sector over ones in manufac- P ORT F OLIO O F P LA N T S
turing, which makes it difficult to find suitable The TRUMPF machines in the pro-
young professionals who are starting out in their duction hall in Lincoln, Nebraska
MACHINES

careers. As an additional burden, American include a variety of different

technologies:
employers also have to cope with a high staff
turnover. With his company TMCO, Roland has
· 2D laser machines from the
successfully mastered all of these challenges. TruLaser Series 3000 and 5000
· Bending machines from the
M A K I N G T H E A M E RI C A N DR E A M C O M E TR U E TruBend Series 5000 and 7000
TMCO manufactures parts for a number of · TruLaser Tube 7000 laser tube
different industries, from the production of cutting machine
/ FAC TS

agricultural machinery, to the construction · TruLaser Center 7030

industry, right through to the energy sector. full-service laser machine
“We’re a local company that has earned itself
a solid reputation. This helps to attract the
right staff. People come to us because their
family or friends work here,” Roland explains.
He believes that this is the result of putting in
hard work. “But it’s worth it when it comes to
finding and retaining quality staff.” For him,

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a crucial aspect is to provide a great working F R E E I N G U P TI M E F OR M OR E

atmosphere. He considers it a matter of course I M P ORTA N T TA S K S
that he should know every employee person- Alongside a good working atmosphere, Roland
ally: “When you also know the names of your and Anwar also rely on automation in order
employees’ sons and daughters, that’s when to counter the projected shortage of special-
you know you’re doing well,” he reveals. TMCO ist staff: “We won’t meet our growth targets
also employs 75 refugees from fifteen differ- if we simply buy one new machine after the
ent countries. “They’re looking for the Ameri- other. We also need to automate our processes
can dream – and we need to be in a position to – if only because there aren’t enough good
make it come true,” he continues. Indeed, his machine operators. This means we stay com-
father emigrated to the USA from Germany at petitive and lets us help our customers faster,”
13 years of age. TMCO arranges communal pic- Anwar adds. He used to work on the machines
nics with a BBQ, bounce houses, and water bal- at TMCO in the metal fabrication himself.
loon battles, and organizes wellness activities Today, it’s the site of an enormous automated
like the TMCO Olympic Games, where the staff high-bay warehouse, which will in future be
train and compete against themselves and their connected to all laser and punching machines.
work colleagues to improve their performance Another prominent new addition is the
in aerobic, strength, and flexibility exercises. ­TruLaser Center 7030 full-service laser machine.
During the coronavirus pandemic, Roland and “I’d never have imagined that a laser machine
TMCO President Anwar Rida are placing an even would be able to remove the cut parts from
stronger focus on looking after their staff. “We the metal sheet,” marvels Anwar. “Up until
take their temperature every day, and every now, four to five employees have had to do
Sunday our team leaders phone their teams this and sort the parts. Now, they have time
to check that everyone’s OK,” comments Anwar, for more important tasks.”
who has now been running TMCO since 2016.

T M C O Inc .
30 A W ORLD I N TRA N S ITIO N

A N ALL - RO U N D TAL E N T
From works of art to furniture
and signs, from construction
and agricultural machinery to
the energy sector: TMCO’s di-
3 verse customer base comes from
3 _  Roland Temme (left) visits
a wide range of industry sectors.
the company every day and tries
The company offers them a range
PRODUCTS
to speak to as many employees
of different services related to
as possible.
metal processing.
4 _ Anwar Rida (right) with an
employee. Anwar has been
·  Turning and milling
managing TMCO since 2016.
· Sheet metal and tube
processing
·  Powder coating
· Welding
·  Prototype construction
/ FAC TS

M OR E T H A N J U S T C OR N F I E LD S A S M ART F A C TOR Y I N T H E W I N D Y C IT Y
Anwar and Roland are convinced that machines No employee will be able to work on a new
like the TruLaser Center 7030 also serve to machine if they have not received the proper
make TMCO more attractive as an employer. training beforehand. Before TMCO puts a
Anwar adds: “When we ask people what machine into operation, the employees have
comes to mind when they think of Nebraska, to complete a training course at TRUMPF’s
they often say farms and corn fields. But premises in Farmington, Connecticut. Roland
there’s a lot more than that here – for exam- clarifies the rationale for this: “Nobody should
ple new technologies, which improve the assume they’ll be working on the same
range of services we can provide to our cus- machine for the next 30 years. Otherwise
tomers and enable us to grow.” Roland recalls there’s a risk of falling behind our competi-
how it all started: “Having state-of-the-art tors.” Recently, the TMCO team has been vis-
technology is a crucial factor in finding qual- iting TRUMPF’s site in Chicago increasingly
ity staff. Everyone prefers to work on a new often to find out more about new machines
machine – including me. When I founded the and technologies. “It’s a seven-hour drive
company in the 70s I worked from a small shack along the Interstate 80 to reach the new Smart
between the railway tracks – it was the cheap- Factory,” Roland adds – a relatively small dis-
est real estate I could find. All my competitors tance by American standards. “TRUMPF made
around me had new machines. That spurred a good decision when they opted to open their
me on to find a way that would mean I, too, Smart Factory in Chicago. We and many other
could buy these machines.” He succeeded in companies in Nebraska are reaping the bene-
1989, when he was able to buy his first TRUMPF fits of the new demo factory in the Windy
machine costing 312,434.04 US dollars. City,” sums up Anwar.

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A F RI E N DL Y
P ART N E R S H I P
Roland has been a TRUMPF cus-
COLLABORATION tomer since the late 1980s. Since
then, he has invested in more than
30 machines. His company has
grown in line with his machine
fleet, and today TMCO employs
just under 200 staff.

31
/ FAC TS

6
Y E AR S

“ H A V I N G S TAT E - O F -
T H E - ART T E C H N OLO G Y
I S A C R U C IAL F A C TOR I N
F I N DI N G Q U ALIT Y S TA F F .
EVERYONE PREFERS
TO W OR K O N A N E W
MAC HINE .”

N E W R E C R U IT S TO F OLLO W A F T E R T H E
C ORO N A V IR U S P A N D E M I C
Both Roland and Anwar hope that TMCO will
make it through the crisis comparatively
5 5 _ The TruLaser Center 7030 has unscathed. “We don’t want to let anyone go
been located in the production as a result of coronavirus, but we’re also not
department in Lincoln for a taking on anyone new at the moment,” says
few months now. Before this, Anwar, explaining the company’s strategy. He
Roland and Anwar Rida saw
expects that, in the near term, the high unem-
the full-service laser machine
ployment rate in the USA will counteract the
live in action during a visit
to the TRUMPF Smart Factory
shortage of specialist staff. “When things pick
in Chicago. up again in a few months’ time, then we’ll
6 _ Roland with his daughter start inviting suitable candidates to interview.
Diane Temme, who is Chief But they have to be the right fit for TMCO,”
Administrative Officer at TMCO. cautions Roland. Working hand in hand with
Anwar Rida and his children Diane and David,
he aims to lead TMCO into a successful future.
And it’s unlikely that he’ll be short of quali-
fied staff to accompany him on his journey.

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T H E

C O M P A N Y
34 A W ORLD I N TRA N S ITIO N

Heinz-Jürgen Prokop
Christian Schmitz
Lars Grünert
Peter Leibinger
Nicola Leibinger-Kammüller
Mathias Kammüller
GROUP MANAGEMENT BOARD

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M E S S A G E F R O M

T H E M A N A G E M E N T

B O A R D

LA DI E S A N D GEN T LEM EN,

In fiscal year 2019/20, which ended on June 30, 2020, the TRUMPF Group recorded a
decline in sales revenues of –7.8 percent compared to the previous fiscal year, moving from
3,784 million euros (2018/19) to 3,488 million euros. We still benefited from our high order
backlog, meaning that sales revenues were 210 million euros higher than our order intake.

The economic downturn that had been noticeable since 2018/19 was further intensified by
the effects of the coronavirus pandemic from March 2020 as a “crisis within a crisis”. This
was particularly reflected in the further decline in the order intake, which fell to 3,278 mil-
lion euros. This represents a drop of 10.9 percent compared with the fiscal year 2018/19
(3,681 million euros).

Our operating earnings before interest and taxes (EBIT ) also declined to 309 million euros,
down –11.5 percent on the fiscal year 2018/19 (349 million euros). However, thanks to the
consistent implementation of our “Koyer” earnings improvement program, TRUMPF was
able to significantly reduce the decline in the EBIT margin. Due to the reduction in invest-
ments and non-personnel costs as well as efficiency improvements in Purchasing, Production,
and Service, we achieved a good overall return of 8.9 percent (previous year 9.2 percent),
almost at the previous year’s level.

We have also responded to the macroeconomic consequences of coronavirus in spring 2020

by implementing further cost-cutting measures, such as taking annual leave and utilizing
excess balances on working time accounts, the introduction of short-time working and
an additional cutback in material costs and investments. As a result, we were also able to
further cushion the decline in returns.

TRUMPF ’s three largest individual markets worldwide were Germany with sales revenues
of 612 million euros, followed by the US with 494 million euros and the Netherlands with
482 million euros, due to the growing EUV business with ASML . In fourth place was China
with 348 million euros.

As part of our earnings improvement program, we also reduced investments by –32.6 per-
cent to 194 million euros (previous year 288 million euros). Tangible assets accounted for
183 million euros.

We have further expanded our technological expertise through targeted acquisitions. Effec-
tive July 1, 2019, we took over Aixtooling through our subsidiary INGENERIC . On October
31, 2019, TRUMPF Photonics in the US acquired a 100 percent stake in Stellar Industries.

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In December 2019, TRUMPF acquired a minority stake in French laser technology start-up
GLOphotonics, and finally took over HBH Microwave in January 2020.

TRUMPF remained a research-intensive company even in the economically challenging

months of fiscal 2019/20. As a result, research and development costs costs amounted to
377 million euros, compared with 396 million euros in the fiscal year 2018/19. However, in
relation to the decline in sales revenues, the R&D ratio increased to 10.8 percent (previous
year 10.5 percent).

At 14,325, the number of our employees worldwide remained virtually unchanged year on
year (previous year 14,490). In Germany, there were 7,437 employees as of the reporting
date of June 30, 2020, of which 4,353 worked at our headquarters in Ditzingen including
Gerlingen. Due to the worsening economic situation, the recruitment of new employees
was put on hold. Only in the EUV business segment, and in IT personnel increases were
made. In the year under review, 513 young people completed a training course or co-op
work-study program. The Group’s training ratio now stands at 3.6 percent, compared with
3.4 percent last year.

We were unable to realize our ambitious plans for the year under review. Although we identified
the risks to further global economic development at an early stage, already mentioning these in
the previous annual report 2018/19, the impact of the coronavirus pandemic was not foreseeable.

On behalf of the management board, I would like to thank all customers, business partners
and employees of TRUMPF all the more for their commitment under difficult circumstances.
And for their great loyalty. This is particularly true at a time of declining investments and
reduced personal contacts as a result of short-time working, and the absence of trade fairs
and face-to-face meetings, which will continue to make a decisive contribution to the success
of our company in the future.

TRUMPF has started the fiscal year 2020/21 with optimized structures in the holding
company and a continuation of our earnings improvement program. We are also making
every effort to bring our innovations in products and services reliably to market despite the
uncertain global economic situation.

Ditzingen, October 2020

DR. PHIL. NICOLA LEIBINGER-KAMMÜLLER

C hief E xe cu t i v e O f f ice r (CEO)

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S U P E R V I S O R Y

B O A R D R E P O R T

LA DI E S A N D GEN T LEM EN,

Fiscal 2019/2020 has been shaped by the coronavirus pandemic and a severely weakened
economic environment. The timely and decisive actions of the Management Board meant that,
despite a moderate decline in turnover and results, TRUMPF was able to generate positive
economic value added for the company, and boost its net financial position. The strategy of
growth through innovation, portfolio optimization, and investments in new businesses will
also be continued against this backdrop.

The Supervisory Board exercised the monitoring and advisory responsibilities incumbent
on it with due care and diligence, in accordance with statutory regulations, the articles of
association, and the rules of procedure. Collaboration between the Supervisory Board and
the Management Board was trusting, effective, and efficient. The Chairwoman of the Man-
agement Board reported regularly and promptly to the Chairman of the Supervisory Board
about all events of significance. The Supervisory Board met three times during the fiscal
year, during which its members discussed issues including the company’s overall strategic
development, operational excellence, the Sales Excellence and Services strategy, as well as
China and the high-volume markets for lasers, along with compliance and auditing. Regular
items on the agenda were business development, crisis management, budget monitoring, as
well as important future fields such as EUV lithography, additive manufacturing, photonic
components, digitalization, as well as investment, acquisition, and divestment plans.

During the fiscal year, the contracts of the Chairwoman of the Management Board Dr. Nicola
Leibinger-Kammüller (from January 1, 2021) and of Dr. Lars Grünert (from January 1, 2020)
were each extended by 5 years.

Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, Stuttgart, reviewed the separate

and consolidated annual financial statements, as well as the Group Management Report
and issued an unqualified audit opinion in each case. Following presentation by the auditor
and having completed their own audits of the separate annual financial statement, the pro-
posed appropriation of earnings, the consolidated annual financial statement, and Group
Management Report, the Supervisory Board accepted the financial statements provided by
the Management Board with no objections.

The Supervisory Board wishes to thank the Management Board members and all employees
worldwide for their hard work and constructive contributions to the company’s success. We
also wish to thank the members of the Works Council for their good cooperation.

Ditzingen, October 2020

DR. JÜRGEN HAMBRECHT

C hair man of t h e S u p e r v i s or y B o ar d

The c o mp a ny
40 A W ORLD I N TRA N S ITIO N

C O M P A N Y

I N F O R M A T I O N

G RO U P M A N A G E M E N T B OARD S U P E R V I S OR Y B OARD

Dr. phil. Nicola Leibinger-Kammüller Dr. rer. nat. Jürgen Hambrecht, Neustadt a. d. Weinstraße
— President and Chairwoman of the Group — Chairman of the Supervisory
Management Board of TRUMPF GmbH + Co. KG Board of Berthold Leibinger GmbH
— Chief Executive Officer: Responsible for the
strategic development of the company, corporate
communications, brand management, real estate Renate Luksa**, Vaihingen/Enz
management and sustainable business, legal — Vice-Chairman of the Supervisory Board
affairs, M+A, internal risk management, and HR of Berthold Leibinger GmbH
(Labour Director) — Senior Chairman of the Works Council of TRUMPF
— Regional responsibility for China Werkzeugmaschinen GmbH + Co. KG, Ditzingen

Dr.-Ing. E. h. Peter Leibinger Werner Bruker**, Lauterbach

— Vice Chairman of the Group Management Board — Chairman of the Works Council of
of TRUMPF GmbH + Co. KG TRUMPF Laser GmbH, Schramberg
— Chief Technology Officer: Responsible for research
and development, sales and service, and
establishing and developing new business fields Prof. Dr. rer. nat. Claudia Eckert, Garching
— Director of the Fraunhofer Institute for
Applied and Integrated Security (AISEC),
Dr.-Ing. Mathias Kammüller Garching
— Member of the Group Management Board
of TRUMPF GmbH + Co. KG
— Chief Digital Officer: Responsible for digital Dr.-Ing./U. Cal. Markus Flik, Stuttgart
transformation, TRUMPF digital solutions, — Management Consultant, Member of Supervisory
business information services, production, and Advisory Boards
and quality and process management

Stefan Fuchs, Hirschberg

Dr. rer. pol. Lars Grünert — Chairman of the Board of Management of Fuchs
— Member of the Group Management Board Petrolub SE, Mannheim
of TRUMPF GmbH + Co. KG
— Chief Financial Officer: Responsible for finance,
financial services, venture capital and purchasing Tatjana Funke**, Stuttgart
— Union Secretary of the IG Metall trade union
Baden-Württemberg, Stuttgart
Dr.-Ing. Heinz-Jürgen Prokop
— Member of the Group Management Board
of TRUMPF GmbH + Co. KG Prof. Dipl.-Ing./M. Arch. Regine Leibinger, Berlin
— Chief Executive Officer Machine Tools — Managing Director and Partner
Barkow Leibinger Architekten, Berlin

Dr.-Ing. Christian Schmitz

— Member of the Group Management Board Jan Lindemann**, Freiburg
of TRUMPF GmbH + Co. KG — Plant Manager at TRUMPF Hüttinger
— Chief Executive Officer Laser Technology GmbH + Co. KG, Freiburg
— Regional responsibility for North America

Rainer Neske, Bad Soden

— CEO of Landesbank Baden-Württemberg,
Stuttgart

Martin Röll**, Tübingen

— Second Authorized Representative of IG Metall
P ART N E R S Stuttgart, Stuttgart

Family Leibinger Harald Weihbrecht-Betz**, Trochtelfingen

— 90.0 percent — Group Leader Production Unit Machine Assembly,
TRUMPF Werkzeugmaschinen GmbH + Co. KG,
Hettingen
Berthold Leibinger Stiftung GmbH*
— 10.0 percent

* Indirectly via Berthold Leibinger Beteiligungen GmbH

** Employee representative
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41

C O R P O R A T E

R E S P O N S I

B I L I T Y
42 A W ORLD I N TRA N S ITIO N

A E RIAL P H OTO S O F C E N TRAL P AR K

I N N E W Y OR K C IT Y A N D T H E TR U M P F
H E AD Q U ART E R S I N DIT Z I N G E N .
Coronavirus has once more demonstrated
the interconnectedness and mutual
dependence of a globalized world – also and
especially when it comes to sustainability.

c o r p o r a t e r esp o ns i b i l i t y
A N N U AL R E P ORT 2 0 1 9 / 2 0
43

The “corporate responsibility” portion of each TRUMPF annual

report traditionally provides information about a variety of
company activities with respect to civil society, politics, mat-
ters of education, and culture. In light of the reduced scope
of the annual report, this year we are focusing on the question
of which climate action targets TRUMPF has set itself – and
what progress we have made in this regard despite more dif-
ficult economic conditions as a result of the coronavirus crisis.

c o r p o r a t e r esp o ns i b i l i t y
44 A W ORLD I N TRA N S ITIO N

This annual report’s editorial details the deci- We therefore try to consider the above-men-
sive features of these changing times: in addi- tioned factors in an integrated manner. This is
tion to changes to markets and business mod- because just as localization within value chains
els as well as digitalization, this period is that are interconnected across the globe has an
characterized by the search for solutions that impact on the consumption of energy and mate-
are suitable for industry and that enable us rials, it is possible to reduce work steps and
to largely break the links between growth errors in the process through the efficient use
and consumption of resources – and for solu- of data. We at TRUMPF are convinced that dig-
tions to reduce greenhouse gas emissions. italization, in the end, also has a role to play in
climate protection.
In doing so, we are not only looking at what
others can do, but also at what specific
actions we can take on our part. Sustainabil-
ity has also always been a technological chal-
COMPONENTS OF OUR
lenge for us when it comes to processes,
C LI M AT E S TRAT E G Y
products, and people. Whether it’s how we
design buildings to be as energy efficient as
possible, how we improve our machines, or 1. ENERGY EFFICIENC Y
optimize purchasing – and also with respect An energy efficiency strategy
to sustainability criteria. (production, infrastructure, vehicle fleet)

STRATEGY 2 . E N E R G Y S U P P LY
CLIMATE
An energy supply strategy, in particular
with regard to TRUMPF producing its
W E AT TR U M P F AR E
own energy and long-term investment in
C O N V I N C E D T H AT
renewable energies.
DI G ITALI Z ATIO N , I N
T H E E N D , AL S O H A S A
3 . ALT E R N ATI V E T E C H N OLO G I E S
ROL E TO P LA Y I N Testing of alternative technologies for
C LI M AT E P ROT E C TIO N . heat production and in the vehicle fleet.

1 _ Aerial photo of the headquarters in Ditzingen.

2 _ The TRUMPF Smart Factory in Chicago.

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45

T R U M P F ’ S

C L I M A T E A C T I O N

T A R G E T S

C O 2 N E U TRAL B Y 2 0 2 0
Last year we announced that TRUMPF produc- TRUMPF has specified quality criteria when it
tion was to be made CO2 neutral globally in comes to purchasing the certificates, in order
terms of overall carbon footprint by the end of to ensure that the purchase actually has a pos-
2020 – through the purchase of 100 % green itive effect on the development of the renew-
electricity/corresponding certificates to offset able energy market. For example, this may mean
the remaining emissions. We already achieved not purchasing electricity from plants that have
this goal at the start of the 2020/21 fiscal year. already been supported.

The transition to green electricity was achieved In order to be upfront when explaining our cli-
by purchasing amounts of green electricity. In mate neutrality, we must point out that, like
the EU this is generally achieved using guaran- other companies, we can only achieve this tar-
tees of origin from the energy suppliers; in the get through offsetting. This can be achieved
USA and other countries this is achieved using conveniently by financing climate protection
“RECs” (Renewable Energy Certificates). projects somewhere in the world. This financ-
ing equates to the amount of emissions that
we produce as the result of combustion of fuels
(in our vehicle fleet) or natural gas and heat-
ing oil (in order to generate heating energy).

TRUMPF has very high quality standards when

purchasing offsetting certificates with a view
to selecting reforestation projects, for exam-
ple; we also make sure to continuously exam-
ine these projects.

C O M P R E H E N S I V E C LI M AT E S TRAT E G Y U P
TO 2 0 3 0
Simply switching over our electricity demand
to renewable sources would be a job half done
if this step was not part of a comprehensive cli-
mate strategy up to 2030 which is focused on
the Paris climate targets and the Science Based
Targets initiative. We are currently working on
ways to significantly reduce the emissions pro-
duced by our sites and vehicle fleet by 2030 in
accordance with the 1.5° reduction target from
the Science Based Targets initiative.

c o r p o r a t e r esp o ns i b i l i t y
46 A W ORLD I N TRA N S ITIO N

E N E R G Y

 C O N S U M P T I O N*

Energy consumption at our sites makes up the majority of the green-

house gas emissions that we directly cause. Since 2015, we have been
analyzing energy consumption systematically, particularly at TRUMPF
production sites.

FIGURES IN
PERCENT

7 7
R E S E AR C H A N D
D E V E LO P M E N T
M I S C E LLA -
Facilities
NEOUS

30
IT, facilities for
training or
demonstration

18
CO
N
GA SUM
S
A P
N
TI
O
D

N AT I N
H
E
OF

H E AT
G E N E RATIO N
NA
NSUMPTION

G OIL
TURAL
CO

B U ILDI N G
CO

T E C H N OLO G Y
NS
Y

12
G

UM E

Lighting,
FU
ER

TI
N

air conditioning
ON L
E

26
* Basis for the data: consumption at European

VEHICLE FLEET
production sites, 2018/19 fiscal year

P ROD U C TIO N P RO C E S S E S
Production facilities and
production infrastructure,
commissioning processes

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A N N U AL R E P ORT 2 0 1 9 / 2 0
47

R E D U C I N G

E M I S S I O N S

In the fiscal year 2019/20, we have expanded our activities when it comes to
energy management into a climate action program. While we are still working
on how we can do our bit in achieving the Paris climate agreement's 1.5° goal
in the long term, we have already realized an intermediate goal for 2020:
TRUMPF sites and vehicle fleets are climate neutral as of the 2019/20 fiscal year,
at least in terms of overall carbon footprint.

FIGURES IN
PERCENT

7
ENERGY EFFICIENCY
Preventing resources being wasted has always
been a top priority at TRUMPF. Energy efficiency
is to remain one of the most important compo-
nents of our climate action activities in the future.
TRUMPF production sites are currently working
on realizing our energy target by 2021: we are
planning on implementing measures that amount
to savings of 6,800 t of CO2.

72
G R E E N E L E C TRI C IT Y
While the sites in Germany, Austria, and Switzer-
land have been working using green electricity
for quite a while now, all other sites in the TRUMPF
Group are now following suit as of the 2019/20
fiscal year and we are purchasing 100 % green
electricity for all TRUMPF sites. In the long term,
we are increasingly investing in producing our
own electricity from renewable sources.

21
O F F S E TTI N G
We have been financing climate protection proj-
ects elsewhere in the world since the 2019/20 fis-
cal year in order to offset the emissions from the
combustion of fossil fuels that we, as yet, have
not been able to avoid. When selecting the proj-
ects, high quality standards and a balanced mix
of technologies (forest conservation, renewable
energies, and community projects) and regions
are important.

c o r p o r a t e r esp o ns i b i l i t y
48 A W ORLD I N TRA N S ITIO N

S H ORT - T E R M S A V I N G S TAR G E T B Y 2 0 2 1
We started with this approach back in 2018 in business caused by coronavirus has meant
and have set ourselves a short-term energy that we had to delay some of the projects we
target: to save around 6,800 tons of CO2 by had planned and we therefore estimate that
2021. To do so, we will invest a total of 6.4 mil- we will need one year longer than expected
lion euros in improving energy efficiency and to achieve this target. Despite this, we con-
producing our own electricity, for example in tinue to support the approach we are taking
the form of solar power systems. The decrease and we are continually expanding it.

TRUMPF GROUP GREENHOUSE GAS EMISSIONS IN THE 2018/2019 FISC AL YEAR* ( f i g u r e s i n t o f CO 2 e )

W ORLD W ID E :
V OLATIL E G A S E S
FUELS 1,481
81 E L E C TRI C IT Y
7,504
E L E C TRI C IT Y
6,798

FUELS
1,147 SI
A
A

N AT U RAL G A S
2,639

N AT U RAL G A S
TOTAL
9,324
EUROPE

50,560
t CO2e
ICA
ER
M
A

E L E C TRI C IT Y
11,225

FUELS
7,993

H E ATI N G OIL DI S TRI C T H E ATI N G

595 1,775

* Includes all TRUMPF sites.

SCOPE 1: SCOPE 2: There is no up-to-date data
for very small sites; a projec-
Direct emissions Indirect emissions tion has been made based on
the site size (size <5 % of the
Generation of heating 12,557 Electricity** 25,527 total emissions).
energy / process heat ** The emissions shown are
based on the specific electric-
ity contracts (market based).
Vehicle fleet 9,220
Calculated based on the
District heating 1,775 national electricit y mixes
(location based), the scope 2
Volatile gases 1,481 emissions from electricity pur-
chasing are 74,462 t of CO2e;
the t ot al emis sions ar e
T O TA L O F S C O P E 2 27,302 99,496 t of CO2e.
T O TA L O F S C O P E 1 23,259

TOTA L 50,560

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G R O U P

M A N A G E M E N T

R E P O R T
50 A W O R L D I N T R A N S I T I O N

G R O U P M A N A G E M E N T

­R E P O R T
FOR FISC AL YEAR 2019/ 20

STRUCTURE AND BUSINESS ACTIVITIES

Our portfolio – Laser Technology and Machine Tools

Machine tools for flexible sheet metal and tube processing represent our largest area of activity.
Our portfolio includes machines for bending, punching, and combined punch and laser process-
ing, as well as for laser cutting and laser welding applications. Diverse automation solutions and
a wide range of software for networked manufacturing solutions round off the portfolio.

Our product range in laser technology includes laser systems for cutting, welding and surface
treatment of three-dimensional parts. We offer high-performance CO 2 lasers, disk and fiber
lasers, diode lasers, ultrashort pulse lasers, and marking lasers and systems.

The Electronics business field is part of Laser Technology, and includes products with direct-­
current, high-frequency and medium-frequency generators for inductive material heating, surface
coating, and processing using plasma technology, as well as for laser excitation.

3D printing systems for metallic components and medical implants also form part of our portfolio.
As part of our additive manufacturing activities in this area, we use the two relevant technologies
of laser metal fusion and laser metal deposition.

CO 2 lasers for EUV lithography constitute another business field, which involves using extreme
ultraviolet radiation to produce even smaller, more efficient circuits and microchips.

In addition to the existing business with high-performance diode lasers, laser diodes from the
Photonic Components business field are used in smartphones, digital data transmission, and
­sensors for autonomous driving.

Organizational structure

The holding company TRUMPF GmbH + Co. KG is the organizational umbrella under which the
TRUMPF Group operates. Operational responsibility for the business divisions and business fields
is divided among various Group executives.

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The TRUMPF Group’s operating business is organized in the two business divisions Machine Tools
and Laser Technology. Within these business divisions, individual product and market segments
are managed as separate business fields. This is the case, for example, with our Chinese machine
tools brand JFY in the Machine Tools division, and with Electronics in the Laser Technology
division.

The Machine Tools and Laser Technology business divisions are managed by a divisional man-
agement team. The CEOs of each division are supported by a management team whose members
are responsible for different functions of the value chain: research and development, production,
sales and service, and finance. The two CEOs are also members of the Group management board.

Alongside its two business divisions, TRUMPF manages its activities in the areas of Additive
Manufacturing, EUV and Photonic Components, as well as Financial Services in separate busi-
ness fields. These are led by separate management teams, each of which reports directly to a
Group executive.

Global presence – close to our customers

The TRUMPF Group is present in all its major markets worldwide. We have 76 subsidiaries
operating in Europe, the Americas, and the Asia-Pacific region. We have production facilities
in Europe (Austria, Czech Republic, France, Germany, Italy, Poland, Switzerland, and United
Kingdom), the Americas (Mexico and the US), and in the Asia-Pacific region (China).

Our headquarters are located in Ditzingen, Germany.

We support our customers with comprehensive services covering the entire life cycle of our prod-
ucts. We offer a full range of services – from financing, tools and spare parts, technical service,
consulting and training through to functional extensions, process optimization, monitoring and
analytical tools, and trade in pre-owned machinery.

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52 A W O R L D I N T R A N S I T I O N

FINANCIAL MANAGEMENT OF THE TRUMPF GROUP

Business divisions and business fields

In the previous fiscal year, the TRUMPF Group introduced division accounting, which reflects its
division-oriented organizational structure from a business management perspective.

Division accounting means that all sales revenues and costs of the individual legal entities are
now allocated to the business divisions and business fields bearing global management responsi-
bility for these, regardless of the legal structure.

Functional management responsibility/Cost-of-sales method

The profit and loss statement in the cost-of-sales accounting method provides business support
to the divisional management teams in exercising their functional management responsibility.
Now, the cost of goods sold as well as the sales, research and development and general adminis-
trative costs are set clearly against the corresponding sales revenues in the profit and loss state-
ment, making them more transparent and thus easier to manage.

Sustainable value growth

The overarching business objective of the TRUMPF Group is to continuously increase the value
of the company by generating lasting positive value added.

Value added, the primary operational performance target of the TRUMPF Group, is defined as
the operating result (EBIT – earnings before interest and tax) minus the cost of capital of the
operationally invested capital.

The cost of capital is defined as the minimum rate of return on the average invested capital. The
minimum rate of return ( WACC – weighted average capital cost) of 9.5 percent (previous year
10.5 percent) is calculated before tax on the basis of a representative peer group of companies from
the mechanical engineering, laser technology, and electronics sectors. The WACC is reviewed
regularly. The review in the current fiscal year resulted in an adjustment of minus 1.0 percentage
points, which is mainly due to changes in the interest rate level.

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At TRUMPF, value added is broken down into three operational objectives:

(1) High growth
(2) Adequate profitability
(3) Efficient capital employed

G R O U P M A N A G E M E N T R E P O R T
54 A W O R L D I N T R A N S I T I O N

in k€ 2019/20 2018/19

(1) High growth

Sales revenues 3,487,668 3,748,010
Reduction/growth compared to previous year –7.8 % 6.1 %

(2) Adequate profitability

+ Earnings before taxes 268,724 301,067
+ Financial and investment result 45,530 50,590
– Exchange rate gains and losses of net financial position1 –4,741 –4,680
+ Write-off of financial receivables – 2,302
– Write-up of financial assets –364 –
= EBIT 309,149 349,279
as a % of sales revenues 8.9 % 9.2 %

(3) Efficient capital employed

+ Intangible assets 143,366 179,730
+ Tangible assets 1,340,294 1,297,152
+ Operating fixed assets 1,483,660 1,476,882
+ Trade receivables 673,345 796,782
+ Inventories 748,957 855,205
– Down payments received –147,982 –160,501
– Trade payables –217,583 –252,717
+ Working capital 1,056,737 1,238,769
= Invested capital (reporting date June 30) 2,540,397 2,715,651
as a % of sales revenues (of the previous 12 months) 72.8 % 71.8 %
= Invested capital (avergage )  2 2,666,570 2,531,595
as a % of sales revenues (average) 76.5 % 66.9 %

Value added
+ Invested capital (average 2) 2,666,570 2,531,595
x WACC (before tax) 9.5 % 10.5 %
= Cost of capital 253,324 265,817

EBIT 309,149 349,279

– Cost of capital –253,324 –265,817
= Value added 55,825 83,462
1  Included in other operating income and other operating costs
2  Average over the 12 months of the fiscal year

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Financial independence

The TRUMPF Group is a family-run company. The family’s aim is to manage TRUMPF in a way
that is autonomous over the long-term and independent of external investors.

For this reason, the company plans to achieve its sustainably high growth objective on an
organic basis as far as possible. The capital spending required for this will usually be financed
by TRUMPF ’s operating cash flow, so that a positive free cash flow can be generated.

In turn, this positive free cash flow is used to strengthen the company’s net financial position.
A strong net financial position enables TRUMPF to finance even substantial individual invest-
ments, such as corporate acquisitions, from its own resources.

Likewise, maintaining a high equity ratio guarantees the company’s economic independence.
Economic equity, which includes long-term liabilities to partners, serves as an additional control
parameter. The family that owns the TRUMPF Group sees these long-term liabilities as part of
its long-term capital resources.

in k€ 2019/20 2018/19

Cash inflow from operating activities 545,053 415,818

– Cash outflow from investing activities (operating) –193,625 –301,356
= Free cash flow 351,428 114,462

Cash and cash equivalents, securities 790,459 640,276

+ Other financial receivables 8,217 870
+ Medium-term financial investments 101,232 90,184
– Financial liabilities –359,546 –365,619
= Net financial position 540,362 365,711

Equity 2,061,413 2,023,130

as a % of balance sheet total 52.8 % 51.4 %
+ Long-term liabilities to partners (> 1 year) 253,751 187,423
= Economic equity 2,315,164 2,210,553
as a % of balance sheet total 59.3 % 56.1 %

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56 A W O R L D I N T R A N S I T I O N

3.7
3.6

Graphic CHANGE IN GDP WORLDWIDE 3.2

3.1
IN PERCENT 2.9

01 The main reasons for the lowest growth rate

since the financial crisis in 2008–2009 were
the major uncertainties arising from the ongoing
trade conflict between China and the US and
weaker growth in China, the US and the
eurozone.

2015 2016 2017 2018 2019

Source: International Monetary Fund

ECONOMIC REPORT

Economic environment

The economic data is characterized by weak development in the first half of the
fiscal year and the coronavirus pandemic in the second half
Graphic
The slowdown in global economic development that was already noticeable in the last fiscal year
01 continued in the current fiscal year, with the coronavirus pandemic significantly amplifying this
effect in the first half of 2020.

The weak global economic development of the first half of 2019 stabilized at a low level during
the second half of the year. According to figures from the International Monetary Fund (IMF),
global growth for the full year 2019 amounted to +2.9 percent in price-adjusted terms. The IMF
expects a decline of –4.9 percent for 2020. Growth in the advanced industrial nations fell sharply
from +2.2 percent in 2018 to 1.7 percent in 2019. The main reasons for the lowest growth rate
since the 2008-2009 financial crisis were major uncertainties arising from the ongoing trade
conflict between China and the US , and weaker growth in China, the US and the eurozone. In
the eurozone, GDP growth fell from +1.9 to +1.3 percent, with Germany seeing growth of only
+0.6 percent in 2019, compared with +1.5 percent in the previous year. Declining exports and
the associated drop in industrial production were the main reasons for this weaker growth,
although private consumption continued to be a stabilizing factor. In 2019, growth also slowed
down noticeably in major economic nations such as the US (+2.3 percent; previous year
+2.9 percent) and China (+6.1 percent; previous year +6.7 percent). Japan was the only exception
with an increase in growth (+0.7 percent; previous year +0.3 percent).

The coronavirus pandemic led to a slump in global economic output in the first six months of
2020, with the International Monetary Fund referring to the sharpest decline in global economic
output since the Great Depression of 1929. While the IMF was still registering a global growth
in gross domestic product of +3.3 percent in January 2020, this fell to –3.0 percent in April 2020
and then to –4.9 percent in June compared to the previous year. The effects of the pandemic
are more noticeable in all regions than predicted in April 2020. Accordingly, the IMF is now

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expecting economic output in the eurozone to decline by –10.2 percent in 2020. According to

these forecasts, Germany’s GDP will shrink by –7.8 percent. Even major markets such as the US ,
China and Japan are set to record massive declines in economic output.

Clear economic downturn in machine tools production

According to the German Mechanical Engineering Industry Association (VDMA), the German
mechanical and plant engineering sector was unable to match the previous two years of growth
in 2019. As causes, the Association cites political upheavals, uncertain investors and the far-
reaching structural change in the automotive industry as an important customer sector. Sales
revenues of German companies fell by –2.8 percent in real terms, while the order intake
fell by –7.0 percent.

The economic downturn was further exacerbated by the coronavirus pandemic in the first half
of 2020. According to the VDMA , the order intake in the German mechanical engineering sector
fell by –22.0 percent in real terms year-on-year between March and May 2020. Declines were
recorded in both domestic and foreign orders.

Laser technology market declining

According to a study by Optech Consulting, the global market for laser systems for material
­processing declined by –5.4 percent in 2019 (previous year rise of +12.0 percent).

The global market for laser beam sources for material processing declined by –13.0 percent
­(previous year rise of +12.0 percent).

China continues to account for around 30 percent of the global market for laser systems for
material processing, followed by the other Asian countries, Europe, and the American continent.

The coronavirus pandemic also had a negative impact on the development of the laser market in
early 2020. Around the world, the order intake for laser systems for material processing and laser
beam sources fell sharply in the first three months (by around –35 percent).

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3,800
3,681
3,379
Graphic O R D E R I N TA K E 3,278
IN MILLION EUROS

02 The solid order intake from 2019 came

2,793

under massive pressure in the first half

of 2020 due to the global impact of the
coronavirus pandemic.

Order intake trend:

–10.9 %
15/16 16/17 17/18 18/19 19/20

BUSINESS DEVELOPMENT

Fiscal year marked by weak global economy and the coronavirus pandemic
Graphic
In the year under review, TRUMPF was unable to match the level of order intake in previous
02 years. While the order intake stabilized in the second half of 2019 at the low level of the first half
of 2019, it came under massive pressure in the first half of 2020 due to the global impact of the
coronavirus pandemic. As a result, there was a sharp drop in orders, particularly in the last quarter
of the fiscal year. For the entire fiscal year, the TRUMPF Group’s order intake of €3,278 million
was 10.9 percent below the previous year’s figure of €3,681 million.

Graphic
Sales revenues were also down in fiscal year 2019/20 due to the weakening of the order intake.
03 However, we were still able to benefit from our high order backlog in the year under review,
meaning that sales revenues fell less sharply than the order intake. Overall, sales revenues fell
by 7.8 percent to €3,488 million (previous year €3,784 million), remaining well below target.
As a result, our book-to-bill ratio was virtually unchanged compared with the previous year
(0.97) and stood at 0.94.

At €309 million, operating earnings before interest and tax (EBIT ) are still at a good level,
but due to the weaker sales performance they fell by 11.5 percent compared with the previous
year (€349 million). As a result, the EBIT margin also fell again, albeit only slightly. By con­
tinuing the “Koyer” earnings improvement program launched in the previous financial year,
which included savings in personnel and non-personnel costs, we achieved a good EBIT margin
of 8.9 percent (previous year 9.2 percent). In spring 2020, we responded to the economic impact
of the coronavirus pandemic by implementing additional cost-saving measures, such as an
additional cutback in non-personnel costs and investments, the reduction of vacation days and
working time accounts, and the introduction of short-time working, thus further limiting the
decline in returns.

At 14,325, the number of our employees worldwide remained almost unchanged year on year
(previous year 14,490). Due to the worsening economic situation, the recruitment of new employ-
ees was put on hold. Personnel increases were only made in the EUV business field and in IT.

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3,784
3,566 3,488
Graphic SALES REVENUES
3,111
IN MILLION EUROS

03 We benefited from a high order backlog,

2,808

resulting in sales revenues falling less sharply

than the order intake.

Decrease in sales revenues:

–7.8 %
15/16 16/17 17/18 18/19 19/20

We were therefore unable to achieve our sales revenues and EBIT targets for the year under
review. Although we identified and mentioned the risks to further global economic development
in the previous annual report, the effects of the coronavirus pandemic were not foreseeable and
had a significant negative impact on the business result.

Order intake declines again due to economic situation – coronavirus pandemic

­amplifies declining effect
At €3,278 million, order intake was 10.9 percent down on the previous year (€3,681 million).
Both business divisions, Machine Tools (€1,937 million) and Laser Technology (€1,165 million),
were unable to match their previous year’s figures. By contrast, the EUV business field stood out
with a positive contribution to the Group (€459 million).

The order backlog at the end of the year under review was €1,006 million (previous year
€1,215 million).

Sales performance of Machine Tools and Laser Technology significantly down

Due to the weakening order intake year-on-year, we were unable to continue the growth in sales
revenues of previous years. Sales revenues suffered a significant decrease of –7.8 percent from
€3,784 million to €3,488 million. We still benefited from our high order backlog in the current
fiscal year, with the result that sales revenues were €210 million higher than order intake.

Sales revenues in our Machine Tools division fell significantly by –11.3 percent to €2,122 million
(previous year €2,391 million). We recorded declines in all markets worldwide as a result of the
economic situation, with particularly sharp sales revenue drops in Europe and the US .

At €1,197 million (–13.1 percent down on the previous year’s €1,377 million), the Laser Technology
division fell significantly short of the previous year’s sales level. In addition to the structural
change in the automotive industry and the resulting reluctance to invest, this is due to the declin-
ing market trends in Europe and China. Sales revenues in North America declined slightly, while
a slight increase was recorded in the rest of Asia.

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From a business field perspective, our EUV business stands out positively. We increased sales reve-
nues in this area from €388 million in the previous year to €460 million in the current fiscal year
(up +18.6 percent). This means that EUV once again accounted for a significant share of Group
sales this fiscal year.

Significant supply relationships exist between the business divisions and business fields. Consoli-
dated sales revenues of the TRUMPF Group do not include inter-divisional sales revenues.

Sales revenues in Europe, the Americas, and China show weak development
In Germany, our largest single market, we were unable to match the high level of sales in previ-
ous fiscal years. Sales revenues fell significantly by –15.1 percent to €612 million (previous year
€721 million).

Markets in the rest of Europe performed in widely differing ways. As in the previous year, the
EUV business with our customer ASML in the Netherlands was a major growth driver. By con-
trast, sales revenues in the other major European markets declined: in France by –0.9 percent,
Italy by –15.8 percent, Spain by –20.7 percent, and by –26.4 percent in the Czech Republic. Overall,
sales revenues in Europe excluding Germany fell by –5.9 percent to €1,399 million (previous
year €1,487 million).

Following the growth of previous years, the Americas also performed less well, with sales
­revenues in the year under review declining by –6.1 percent. In our second largest single market,
the US , we recorded a decline of –9.7 percent to €494 million (previous year €547 million).
­Canada, on the other hand, developed very positively after a weak previous fiscal year, increasing
sales ­revenues from €62 million to €79 million year on year. Sales were also down in South
America with a decline of –8.0 percent; this was due in particular to a poor business performance
in Brazil.

With few exceptions, the Asian markets experienced a downward trend. Overall, our sales reve-
nues in the Asia-Pacific region fell by –6.4 percent to €798 million (previous year €853 million).
Sales revenues in our largest Asian market, China, once again fell sharply by –16.0 percent to
€348 million (previous year €415 million). Japan recorded a significant decline following growth

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535

Graphic EBIT
IN MILLION EUROS

04 Weaker sales revenues led 355 349

to a decline in EBIT. 308 309

EBIT margin:

8.9 %

15/16 16/17 17/18 18/19 19/20

in the previous year (€148 million, down –14.4 percent). After a weak previous year, South Korea
(€134 million, up +14.1 percent) returned to significant growth, while business in Taiwan (€29 mil-
lion, up +69.9 percent) and Turkey (€19 million, up +36.4 percent) performed equally positively.

Little change in overall distribution of revenue

Germany’s share of total sales revenues decreased to 17.5 percent (previous year 19.1 percent).
Europe (excluding Germany) accounted for 40.1 percent of our sales (previous year 39.3 per-
cent). The portion attributable to the American markets rose slightly to 19.0 percent (previous
year 18.7 percent). Despite the negative sales trend in China, Asia’s share also increased slightly
year on year (from 22.6 percent to 22.9 percent).

Results of operations, net assets and financial position

Further decline in earnings compared to previous year

Graphic
At €309 million, operating earnings before interest and tax were €40 million below the previous
04 year (€349 million). The –11.5 percent decline in EBIT is mainly due to lower sales revenues.
Cost reductions from the continuation of the “Koyer” earnings improvement program and further
cost reductions in response to the coronavirus pandemic significantly slowed the decline in returns,
enabling us to achieve a good overall EBIT margin of 8.9 percent (previous year 9.2 percent).

The cost of goods sold includes all expenses attributable to products or services sold in the fiscal
year as well as any remaining costs of the Purchasing, Production, and Service operating areas
that are not allocable to products or services. The cost of goods sold fell from €2,296 million to
€2,125 million (down –7.4 percent) due to the decline in sales revenues compared with the previous
year. The cost of sales ratio increased slightly year-on-year from 60.7 percent to 60.9 percent.
Increased costs due to underutilization of production plants and falling market prices, particularly
in the Laser Technology division, were almost completely offset by cost savings in the areas of
Purchasing, Production and Service. Gross profit fell from €1,488 million to €1,362 million.

Sales costs include all personnel costs allocated to the Sales division, other operating costs
(mainly travel and marketing costs), as well as depreciation and material costs for our showrooms.
Freight and packaging costs are also included under this item to the extent that they can be

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allocated to transport from the production plant to the customer. The decline of –10.2 percent
to €477 million is partly due to lower commission costs as a result of lower sales. In addition,
cost-cutting measures led both to reduced personnel costs and to lower personnel-related over-
head costs. We have also reduced trade fair and marketing costs. The sales costs to sales ratio
fell to 13.7 percent in the fiscal year 2019/20 (previous year 14.0 percent).

Research and development costs comprise all amounts spent on basic research or new develop-
ments and not related to current production. These include in particular personnel, non-personnel,
and material costs. In fiscal 2019/20, research and development costs fell by –4.6 percent to
€377 million (previous year €396 million). The main reasons for the decrease in costs were
savings measures in personnel costs, consumption of materials, and non-personnel costs. This
was offset by higher depreciation for test machines and prototypes. The research and develop-
ment ratio rose to 10.8 percent (previous year 10.5 percent) due to the disproportionately low
decline in costs compared to sales revenues. It therefore remains at a very high level.

General administrative costs include in particular personnel costs, depreciation and amortization
and other non-personnel costs relating to management, IT, human resources, infrastructure,
and finance. At €178 million, these costs were well below the previous year (€209 million). This
positive development is also due to the cost-cutting measures relating to personnel costs and
non-personnel costs. Only depreciation was slightly higher than in the previous year. The admin-
istrative cost ratio fell by –0.4 percentage points year-on-year to 5.1 percent.

Other operating income (€139 million, previous year €145 million) and other operating costs
(€155 million, previous year €146 million) mainly comprised contrary exchange rate gains and
losses resulting from operating and financing transactions and the hedging of these transactions.
In total, other operating income and costs fell significantly from €–1 million in the previous year
to €–16 million. The reason for the decline is the absence of exceptional income from the previous
year (in fiscal 2018/19, income of €9 million was generated from the sale of a property in China).
In addition, the balance of exchange rate gains and losses – a net gain of €+0.4 million – was

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Graphic BALANCE SHEET Assets Equity and liablilities

STRUCTURE

05 IN PERCENT AND
IN MILLION EUROS
39.3 % 40.1 % Fixed assets
51.4 % 52.8 % Equity
Balance sheet total
declined by –0.9 percent
in the year under review. 0.2 % 0.2 % Special items

18.3 % 18.1 % Accruals

60.2 % 59.5 % Current assets

30.1 % 28.9 % Liabilities

0.5 % 0.4 % Deferred tax assets

Total 3,939 3,903 3,939 3,903

18/19 19/20 18/19 19/20

down on the previous year (net gain of €6 million). Furthermore, the amortization of goodwill and
intangible assets recognized in connection with corporate acquisitions increased from €–28 million
in the previous year to €–33 million in the 2019/20 fiscal year.

At €–46 million, the financial and investment result was €5 million better than in the previous
year (€–51 million). Discounting of long-term accruals accounted for €–37 million of this
(previous year €–39 million). The improved financial result was mainly due to the absence of
non-recurring effects from the previous year. In fiscal year 2018/19, a participation in a
non-consolidated company was depreciated in the amount of €–6 million.

Taxes on income amounted to €–70 million in the fiscal year 2019/20 (previous year €–85 million).

Net assets and financial position:

Increase in equity and reduction in working capital
Graphic
The balance sheet total in the year under review fell by –0.9 percent to €3,903 million (previous
05 year €3,939 million).

Fixed assets rose to €1,565 million (previous year €1,547 million) – an increase of 1.2 percent.
The increase was largely due to investments in land and buildings and technical equipment
and machines. This was offset by the high amortization of goodwill and hidden reserves which
resulted in a reduction in intangible assets.

Current assets including prepaid expenses and deferred tax assets fell by –2.3 percent to
€2,338 mil­l ion (previous year €2,392 million). Inventories (before down payments received)
fell by –12.4 percent to €749 million (previous year €855 million) due to the lower production
output. Due to the sharper decline in inventories compared with sales revenues, days inventories
outstanding (DIO) fell from 81 to 77 days. Down payments received fell by –7.8 percent to
€148 million (previous year €161 million). Days payments received (DPR) remained constant
at –15 days.

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Trade receivables fell significantly by –15.5 percent to €673 million (previous year €797 million).
This is mainly due to the initiatives undertaken as part of the working capital program. Due
to the disproportionate decrease in receivables compared with the decline in sales revenues, days
sales outstanding (DSO) decreased by 6 days to 70 days (previous year 76 days).

Trade payables decreased by –13.9 percent to €218 million (previous year €253 million), causing
days payables outstanding (DPO) to fall from –24 to –22 days. This is due in particular to the
lower purchasing volume.

Working capital – the sum of inventories and trade receivables less down payments received and
trade payables – contracted by –14.7 percent to €1,057 million (previous year €1,239 million).
Due to the disproportionate reduction in working capital compared to the decline in sales reve-
nues, the working capital ratio as a percentage of sales revenues fell from 32.7 percent to
30.3 percent. Our significantly intensified management of working capital in the past fiscal year
also contributed to this.

As in the previous year (€83 million), we again generated positive value added, posting €56 mil-
lion in the year under review. Value added is defined as the operating result (EBIT – earnings
before interest and tax) minus the cost of capital of the operationally invested capital.

Cash and cash equivalents rose by +25.5 percent to €741 million (previous year €590 million).
At €+545 million, cash inflows from operating activities were significantly higher than in the pre­
vious year (€+416 million), with the year-on-year reduction in working capital having a particularly
positive effect here. As a result of the cuts in the investment budget, cash outflows from opera-
tions-related investing activities were significantly lower than in the previous year at €–194 million
(previous year €–301 million). Free cash flow thus increased to €+351 million (previous year
€+115 million).

Cash outflows from other investing activities came to €–35 million (previous year €–237 million).
This decrease is due to significantly lower payments for acquisitions compared to the previous
year. The previous year’s high amount was mainly due to payments for the acquisition of the
Photonics business and for the remaining shares in our Chinese subsidiary Jiangsu Jinfangyuan

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CNC Machine Co. Ltd. ( JFY). This item also includes investments in medium-term financial
assets with a remaining term of more than three months, which are reported under other assets.
As a result of the increase in cash and cash equivalents, medium-term financial assets increased
again in the year under review, although at €–11 million the increase was lower than in the
previous year (€–34 million).

Cash outflows from financing activities amounted to €–171 million (previous year cash inflow
of €+140 million). There was no significant net borrowing in the fiscal year 2019/20, whereas
cash inflows in the previous year included the placement of a promissory note of €+250 million.

The sum of all cash-relevant changes in cash in hand therefore amounted to €146 million (previous
year €17 million).

The net financial position – the sum total of cash and cash equivalents, securities in current assets,
financial receivables, and medium-term financial assets included under other assets less financial
liabilities – rose by +48.1 percent to €540 million (previous year €366 million), mainly as a result
of incoming payments from the reduction in receivables.

Equity increased by +1.9 percent to €2,061 million in the year under review (previous year
€2,023 million), causing the equity ratio to rise to 52.8 percent (previous year 51.4 percent).
Economic equity, which includes long-term liabilities to partners, rose by +4.7 percent to
€2,315 million (previous year €2,211 million), and the economic equity ratio increased from
56.1 percent to 59.3 percent.

Accruals fell by –1.9 percent to €708 million (previous year €722 million). This is primarily
due to the reduction in personnel and tax accruals, and is countered by an increase in accruals
for pensions and similar obligations, which mainly resulted from the change in interest rates
compared with the previous year.

Liabilities fell by a total of –4.7 percent to €1,045 million (previous year €1,097 million). The
decrease is mainly related to trade payables (€–35 million) and other liabilities (€–16 million).

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288

Graphic INVESTMENTS
IN MILLION EUROS

06
216
200 194
88.1 percent of our total investments were
made in Germany. The main focus was on
buildings at our head­q uarters. The Americas
accounted for 5.8 percent of total investments, 138
Asia for 5.3 percent.

Decrease in investment s:

–32.6 %
15/16 16/17 17/18 18/19 19/20

Liabilities to partners rose only slightly by +1.4 percent – from €360 million to €365 million,
and thus remained at the previous year’s level.

Investments and acquisitions

Investment focus on building at headquarters

Graphic
Following a sharp increase in the previous year, we also reduced investments by –32.6 percent to
06 €194 million (previous year €288 million) as part of our “Koyer” earnings improvement program.
Tangible assets accounted for €183 million (excluding internally used self-produced machines in
the amount of €66 million) and intangible assets for €11 million.

Land and structural extensions accounted for 28.3 percent of the total investment amount men-
tioned above. 8.1 percent was invested in technical equipment and machines and 19.5 percent
in factory and office equipment. 88.1 percent of our expenditure was in Germany. Construction
investments, almost exclusively at the company’s headquarters in Ditzingen, accounted for around
one quarter of this amount and represented the continuation of construction projects already
started in the previous year.

0.8 percent of our investments were made in the rest of Europe. The Americas accounted for
5.8 percent of investments and Asia for 5.3 percent.

The ratio of investments to fixed assets was 5.6 percent (previous year 7.6 percent). Investments
in tangible and intangible assets of €194 million in the year under review were at the same level
as depreciation and amortization, which totaled €198 million (previous year €187 million).

Acquisitions
We also aim to further expand our technological expertise through targeted acquisitions.

Effective July 1, 2019, we acquired Aixtooling, a tool manufacturer for precision optics, through
our subsidiary INGENERIC . These optics are used, for example, in laser and medical technology
and in components for autonomous driving. Aixtooling was merged with INGENERIC over the
course of the fiscal year.

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14,490 14,325
13,420
Graphic EMPLOYEES
11,883
11,181
07 TRUMPF employed 7,437 people
in Germany. Outside Germany, the
number of employees fell to 6,888.

Number of employees:

–1.1 %

15/16 16/17 17/18 18/19 19/20

Effective October 31, 2019, TRUMPF Photonic in the US acquired 100 percent of Stellar Industries,
a manufacturer of metallized ceramics that are used, among other things, for the production of
diode lasers.

In December 2019, TRUMPF acquired a minority share in the French laser technology start-up
GLOphotonics. The Limoges-based company develops and produces a special optical fiber to
guide laser light in material processing from the laser beam source to the workpiece faster, easier
and without any loss of power.

In January 2020 we took over HBH Microwave based in Stutensee, thereby expanding TRUMPF
Hüttinger’s technology portfolio to include semiconductor-based solid-state microwave generators.
These are used in industrial applications such as plasma generation and industrial heating, and
in communication and radar technologies. Particle accelerators in research, medicine and industry
also represent an important future-oriented target market.

Employees

Number of employees worldwide remain virtually unchanged

Graphic
The number of employees working for TRUMPF worldwide has remained virtually unchanged
07 in view of the cost-cutting measures taken. As of June 30, 2020, we employed 14,325 people
(previous year 14,490).

In Germany, TRUMPF had 7,437 employees as of the balance sheet date – a +0.1 percent
increase on the previous year (7,427). The increase in employees was primarily to strengthen our
EUV business field and business IT.

Outside Germany, the number of employees fell by –2.5 percent to 6,888 (previous year 7,063).

The training of young skilled workers, engineers, business administrators and IT specialists is very
important to us. In the year under review, 513 young people completed a training course or co-op
work-study program, resulting in a training ratio of 3.6 percent for the company (previous year
3.4 percent).

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396
377

Graphic RESEARCH AND DEVELOPMENT 343

318
IN MILLION EUROS

08 Our R&D ratio in relation to

296

sales revenues is at a very high

level of 10.8 percent.

Decrease in research and development:

–4.6 %
15/16 16/17 17/18 18/19 19/20

RESEARCH AND DEVELOPMENT

High R&D ratio

Graphic
We reduced research and development costs in fiscal year 2019/20 in line with the “Koyer”
08 earnings improvement program and the additional cost reductions resulting from the coronavirus
pandemic. As a result of various cost-cutting measures in respect of personnel costs, material
consumption and other non-personnel costs, expenditure in this area fell by –4.6 percent to
€377 million (previous year €396 million). In relation to sales revenues, the R&D ratio increased
to 10.8 percent (previous year 10.5 percent) and thus remains at a very high level.

Graphic
The number of employees working on new products for TRUMPF fell by –0.2 percent to
09 2,201 people (previous year 2,206). By conducting intensive technology scouting, TRUMPF
wishes to evaluate trends in the technology areas relevant to us at an early stage and then
initiate appropriate measures. These measures include building up new skills, launching
partnerships with start-ups, and assessing non-organic growth options using a strategically
oriented pre-M&A process. The aim is to develop new business opportunities and/or expand
existing business fields.

Venture capital projects can be an alternative to forging partnerships with start-ups. Accord-
ingly, TRUMPF Venture invested in Swiss start-up Resistell in December 2019, among others.
The start-up is working on microbiological diagnostics with the aid of light sensors.

TRUMPF has also created an innovation scheme called “Internehmertum”, which encourages
employees to propose their ideas and progress them through various stages within the company
to a start-up. In the year under review, TRUMPF acquired a participation in Peers – a spin-off
from the Internehmertum scheme. The start-up has developed a digital platform that can be used
to teach advanced training solutions.

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2,206 2,201
2,087

Graphic EMPLOYEES IN RESEARCH 1,843

AND DEVELOPMENT 1,716
09 On the reporting date, 2,201 employees
in the TRUMPF Group were working on
the products and ideas of tomorrow.

Decrease in research and

development employees:

–0.2 %
15/16 16/17 17/18 18/19 19/20

OPPORTUNITIES AND RISKS

Risk management

As a globally active high-tech company, TRUMPF is exposed to a variety of risks, which is why
we have a differentiated risk management system. Through a central risk manager, we regularly
identify and evaluate risks in all areas throughout the Group and determine the relationships
between these risks. The results are regularly presented to management.

The Group’s Management Board and its heads of business divisions and central corporate
departments are given monthly updates on the company’s results of operations, net assets and
financial position.

The order intake, an important key figure, is reported on a daily basis. The key financial figures
and analyses of these figures by the Controlling department provide the basis on which manage-
ment can identify and evaluate potential risks and decide on appropriate countermeasures.

Our corporate planning process includes an analysis of alternative scenarios for possible trends
within the TRUMPF Group and their potential risks. An interest and currency committee, which
meets monthly, manages and controls cash flow, currency and interest rate risks at Group level.
In addition, market and competition analyses enhance risk transparency. Our “Koyer” earnings
improvement program and the additional measures resulting from the coronavirus pandemic
enabled us to respond appropriately to the current economic downturn at an early stage.

Market opportunities and risks

The outlook for the global economy deteriorated significantly in the course of the fiscal year,
primarily due to the massive economic impact of the coronavirus pandemic. The International
Monetary Fund expects global growth to decline by –4.9 percent in 2020 rather than growing
by over 3.0 percent as originally forecast. In 2021, the IMF expects global growth to return to
+5.4 percent – which would bring global GDP just back to the level of 2019.

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The IMF expects growth in the industrialized countries to recover slightly in the second half
of 2020, with significant growth of +4.8 percent in 2021. However, this means that the level of
GDP in the industrialized countries will remain around –4 percent below that of 2019.

For emerging and developing countries, the IMF expects negative growth for all regions for the
first time due to the effects of the coronavirus pandemic. However, there are considerable
­d ifferences between the individual economies, which are characterized by the containment of the
pandemic and dependence on heavily affected sectors, such as tourism. While slight growth is
expected again for China and India in 2020, the IMF expects the economies of Brazil, Mexico,
Russia and South Africa to continue contracting sharply in the second half of the year.

Opportunities offered by the end-to-end digitalization of the process chain

TRUMPF offers its customers a product portfolio for digitally connected production. Its modu-
lar solutions enable both vertical and horizontal networking of production processes right
through to smart factory options, i.e. end-to-end digital connectivity in production. We provide
our customers with comprehensive advice on the introduction of digitally networked processes,
and frequently find that indirect processes in particular offer huge potential for improvement.
We are also systematically digitalizing our own value chain. In doing so, we are taking a cross-­
departmental approach with the aim of ensuring that the optimization measures have an impact
on the entire order-to-cash process.

Opportunities from continued growth in demand for EUV lithography

Microchip manufacturers are expanding their production facilities to include EUV lithography
systems. High-performance laser amplifiers from TRUMPF are used in the production of micro-
chips with EUV lithography. These laser amplifiers are used to generate a luminescent plasma
that delivers the extreme ultraviolet radiation needed to expose the wafers. We assume that there
will be a sustained increase in demand for these systems.

Opportunities in the additive manufacturing market

The market for additive manufacturing processes has only grown slowly in the last two years,
however we remain fundamentally convinced that additive manufacturing is a pioneering pro-
cess with which TRUMPF can achieve considerable business success. Many industries, such as

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aircraft construction, the automotive industry, medical technology or tool and die making, use
TruPrint machines. TRUMPF offers both of the relevant processes for industrial metal 3D print-
ing: laser metal fusion and laser metal deposition.

Opportunities from our sales financing solutions

TRUMPF offers its customers in around 30 countries access to investment financing in the form
of credit and leasing offers. In addition to financing TRUMPF products, we can also finance
machines from other manufacturers, commercial real estate, or vehicle fleets.

Financial opportunities and risks

The TRUMPF Group regularly safeguards its liquidity through medium to long-term measures.
We have once again increased our liquidity reserves compared with the previous year. Cash and
cash equivalents are mainly invested in the money market on a short-term basis. When investing
our liquidity reserves, we ensure that the risk is diversified by spreading the investments across
several financial institutions and instruments. As a result, we have currently succeeded in largely
avoiding a negative interest rate. We only consider banks with a good credit rating.

At the end of February 2020, we successfully concluded a €500 million syndicated credit line with
seven partner banks. This replaced an existing €300 million credit agreement which would
­otherwise have run until 2022 from 2015 ahead of schedule and at even more attractive conditions.
The new credit facility has a term of five years and can be extended twice, each time for one year.
The credit line, like the previous one, serves as a committed liquidity reserve.

Our liquidity reporting system enables us to check the liquidity of all our subsidiaries on a daily
basis. This was primarily used as part of the measures for the coronavirus pandemic, with daily
reporting ensuring a transparent overview of the TRUMPF Group’s liquidity situation and safe-
guarding liquidity during the crisis.

Exchange rate and interest rate risks represent additional financial risks for us.

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72 A W O R L D I N T R A N S I T I O N

As the eurozone represents our main sales market with a 45.6 percent share of sales revenues, and
as we are partly able to offset foreign currency payments thanks to our international production
network and global purchasing, we consider our exchange rate risk to be limited.

At TRUMPF, derivative financial instruments are not used for speculative purposes, but solely to
hedge underlying transactions. The risk of fluctuations in the market prices of forward exchange
transactions is offset by the opposite trend in the market value of the underlying transactions.
Hedging takes place within the Group, i.e. with the companies of the TRUMPF Group, to cover
foreign currency risks from posted, pending, and anticipated underlying transactions. TRUMPF
also enters into external hedging transactions with banks in line with the forward exchange trans-
actions concluded internally, and taking into account net exposures.

We systematically hedge net exposures in US dollars, Japanese yen, Chinese renminbi, Korean
won, Swiss francs, British pounds sterling, and Polish zloty using standardized currency hedging
instruments such as forward exchange transactions and currency options. Other currencies are
hedged on a project-related basis.

In the eurozone, we concentrate our liquidity on a daily basis with the aid of a cash pool system
that ensures transnational liquidity balancing. We have a similar system in use at our subsidiaries
in China. Multilateral netting of receivables and liabilities increases transparency and facilitates
the handling of the Group’s internal cash flows.

Internal audits are intended to create additional transparency regarding the financial situation of
our subsidiaries.

Strategic and operational opportunities and risks

Innovations
We are quick to respond to emerging trends in technology. Our Innovation Management unit
continuously searches for future technologies and takes steps to integrate them into our technol-
ogy landscape.

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We also seek to forge close ties with universities, non-university research institutes or correspond-
ing start-ups – including on a very targeted basis via our venture capital company. Institutional
research in projects with several partners is of central importance to us, ensuring that we are always
up to date with trends in our high-tech fields.

Intellectual property
We safeguard our investments in research and development by ensuring that our R&D and patent
departments work hand in hand. Our aim is to develop a patent portfolio that grants TRUMPF
advantages in the market in terms of freedom of action, exclusivity, and patent exploitation. Our
patent attorneys provide support throughout the new technology development process to help
ensure that patents are generated, evaluated, and exploited in a targeted manner. We also register
industrial property rights for design innovations, with a special focus on our core markets.

Acquisitions
We make targeted acquisitions and divestitures in order to improve our position in our markets
and fields of technology. Decisions on acquisitions and divestitures are taken with great care.
An M&A committee consisting of members from our business and central departments evaluates
potential projects. We use due diligence procedures to obtain the greatest possible certainty about
the future development potential of an M&A project.

Procurement
We regularly review the purchasing volume for optimization potential and organize cross-location
calls for tenders centrally.

We aim to minimize risks through a comprehensive supplier management system. The careful
selection and continuous evaluation of our strategic suppliers (also with regard to the likelihood
of default) as well as a stringent supplier approval process provide us with the necessary transpa­
rency about possible risks at all times. Continuous monitoring of delivery quality and reliability
enables us to derive suitable quality assurance and supplier development measures. The provision
of our basic supplies by third parties was guaranteed at all times. Isolated supply bottlenecks for
specific product groups – including during the coronavirus pandemic – were resolved by active
demand and escalation management.

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74 A W O R L D I N T R A N S I T I O N

Production
We are continuously developing our production processes as the digitalization of the entire order-­
to-cash process also affects large parts of production. We are continuing to press ahead with the
systematic standardization of our processes in particular, as part of the digital transformation.

SYNCHRO, our lean production philosophy, is a crucial prerequisite for this. We have defined
business interruption risks in production and have taken appropriate precautions. We have
examined and evaluated critical production processes. Production downtimes should be avoidable
by increasing the manufacturing flexibility of our production facilities or relocating production
for short periods, and extensive emergency scenarios are in place for this purpose. An international
insurance scheme and local coverage provide cover for property damage, fire damage, business
interruption, and business and product liability risks. We regularly evaluate and audit our
­production sites with our insurance broker.

Information technology
IT risks are one of the key areas on which we focus. We permanently monitor our central IT
­systems and have initiated and in some cases successfully completed projects to continuously
improve the level of security by organizing our IT landscape to optimize this and by regularly
investing in hardware and software.

A consequence of increasing digitalization is that the focus is also shifting to the security of the
software used in TRUMPF products. This is why we have centralized responsibilities for security
within the company in relation to software development, architecture requirements, development
infrastructure and responding to security issues. The development teams in these areas receive
expert support to ensure that security requirements are considered early on in the development
process.

Employees
Our employee turnover rate is 4.7 percent in the Group and 2.9 percent in Germany. Demographic
change and a lack of skilled workers, especially in technical professions, continue to present
challenges. For this reason, our activities to secure young talent are kept at a high level for TRUMPF.

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We have set ourselves a Group-wide occupational safety target to reduce accidents worldwide to
a best-in-class level, and are implementing our occupational health and safety policy and local
TRUMPF safety standards. We aim to continuously improve the level of occupational health and
safety through standardized processes and instruments and by monitoring the results through
Group-wide audits.

Compliance
Management expects its employees to comply with the law in their business dealings. TRUMPF
has implemented a compliance management system with the aim of avoiding legal violations and
is further developing the individual elements of the system. The program and communication
elements were one of the focal points in the year under review, with measures including the
introduction of a Group-wide compliance policy and an intensifying of activities to raise awareness
among employees – and particularly among managers – through regular news on the intranet
and the systematic use of new training methods based on practical experience. The overriding
aim of the compliance program is to promote a corporate culture in which people talk openly
about compliance, know the rules and adhere to them as a matter of course.

Assessment of the company’s risk situation

No risks have been identified that could substantially endanger the Group’s status as a going con-
cern. The risk management practiced should make it possible to identify risks promptly so that
appropriate countermeasures can be initiated. Our activities are focused on managing financial
and market risks and identifying business and technological opportunities.

OUTLOOK

Significant slump in the machine tools industry in 2020

After the slight decline in growth in 2019, the German Machine Tool Builders’ Association (VDW)
expects a massive drop in orders of –30 percent in 2020. Production is expected to fall by
–31 percent. In addition to weak global trade, the VDW cites the coronavirus pandemic as one of
the reasons for the downward trend. For 2021, the VDW expects the order intake to increase
again by +32 percent and production by +9 percent.

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76 A W O R L D I N T R A N S I T I O N

Continued subdued growth in the laser industry; risks due to coronavirus pandemic

The global laser market will increase its sales revenues in 2020. According to reports from Laser
Focus World, the market as a whole is expected to grow by around 11 percent, after only
+4.8 percent growth in 2019. The analysts quoted expect that lasers for sensors, displays, in the
medical sector and in photolithography will have the greatest growth potential. As the data was
collected at the beginning of 2020, the consequences of the coronavirus pandemic have not yet
been considered.

Outlook for the company

TRUMPF expects a difficult fiscal year 2020/21 due to the current low level of
­incoming orders
We assume that the effects of the coronavirus pandemic will persist into the second half of 2020
and therefore do not expect the order intake to pick up until the first half of 2021. Overall, we
expect a renewed, but rather slight decline in the order intake in the next fiscal year compared
with 2019/20.

We also anticipate a further decline in sales revenues compared with this fiscal year. The lower
level of incoming orders from the first half of 2020 will inevitably be reflected in a decline in
sales revenues in 2020/21. It is our overall expectation that sales will decline somewhat more
sharply than the order intake.

The Group’s EBIT margin is coming under further pressure due to the decline in sales revenues.
The “Koyer” earnings improvement program and the additional cost-saving measures due to the
coronavirus pandemic will therefore be continued in the next fiscal year. All in all, we are antici-
pating an EBIT margin that is significantly lower than this year, but still positive. However, the
expected EBIT margin will probably not be sufficient to achieve a positive value added and thus
an increase in value of the TRUMPF Group in the next fiscal year.

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With regard to our two business divisions, Machine Tools and Laser Technology, we do not
expect the current difficult market situation to recover in the coming fiscal year. Similarly to the
TRUMPF Group, we expect another slight decline in the order intake for both business divi-
sions, and a somewhat stronger decline in sales revenues.

In contrast, our forecasts for the EUV, Electronics, and Additive Manufacturing business fields
are optimistic. We anticipate a further significant increase in sales revenues in EUV lithography
for coating microprocessors. Together with Zeiss and ASML , TRUMPF is still the only supplier
in this highly innovative manufacturing process. With regard to electronic products, we are
looking forward to a continuation of the current positive trend and aim to capitalize in particu-
lar on growth in the semiconductor sector and microwave technology in the next fiscal year.
In the Additive Manufacturing business field, we are consistently using new machines, our tech-
nology and process expertise, and technological innovations to open up new customer groups.

Digitalization is a central component of TRUMPF ’s business strategy. In addition to offering an

ever-growing range of TruConnect products, which are designed to digitalize and optimize our
customers’ processes, we are also keen to further promote the digital networking of production and
offer more smart factory solutions, i.e. end-to-end digital connectivity in production. In recent
years, we have taken a variety of strategic measures to prepare the TRUMPF Group for the future.
In so doing, we aim to expand our technological expertise and anticipate market developments
as early as possible so that we can continue to create a high level of customer benefit.

Ditzingen, September 14, 2020

TRUMPF GmbH + Co. KG

Berthold Leibinger GmbH
Dr. phil. Nicola Leibinger-Kammüller, President and Chairwoman
Dr.-Ing. E. h. Peter Leibinger, Vice Chairman
Dr.-Ing. Mathias Kammüller
Dr. rer. pol. Lars Grünert
Dr.-Ing. Heinz-Jürgen Prokop
Dr.-Ing. Christian Schmitz

G R O U P M A N A G E M E N T R E P O R T
78 A W O R L D I N T R A N S I T I O N

E M P L O Y E E S

B Y R E G I O N

T O TA L T O TA L E XC L U D I N G G E R M A N Y

14,325 6,888
M I N U S 1.1 % M I N U S 2.5 %

GERMANY EUROPE EXCLUDING GERMANY

REGIONAL FACTS AND FIGURES

7,437 3,407
P L U S 0.1 % M I N U S 1.8 %

WESTERN EU ROPE E XC LUDING GERMANY EASTERN EUROPE

2,363 1,044
M I N U S 3.0 % P L U S 0.9 %

AMERICAS A SIA - PAC I FIC

1,416 2,065
M I N U S 2.9 % M I N U S 3.2 %

Figures as of June 30, 2020/Percentage change year on year

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S A L E S R E V E N U E S

B Y R E G I O N

IN
MILLION EUROS

T O TA L T O TA L E XC L U D I N G G E R M A N Y

3,488 2,876
M I N U S 7.8 % M I N U S 6.1 %

GERMANY EUROPE EXCLUDING GERMANY

REGIONAL FACTS AND FIGURES

612 1,399
M I N U S 15.1 % M I N U S 5.9 %

WESTERN EU ROPE E XC LUDING GERMANY EASTERN EUROPE

1,099 299
M I N U S 3.0 % M I N U S 15.5 %

AMERICAS A SIA - PAC I FIC

664 798
M I N U S 6.1 % M I N U S 6.4 %
80 A W O R L D I N T R A N S I T I O N

L O C A T I O N S

I N G E R M A N Y

15
 itzingen
D
[Headquarters]
Gerlingen
Hettingen
Aachen
LOCATIONS

Berlin
Freiburg
Herzogenrath
Neukirch
Schramberg
Stutensee
Stuttgart
Tamm
Teningen
Ulm
Unterföhring

Selected locations of legally independent

and dependent companies.
A N N U A L R E P O R T 2 0 1 9 / 2 0
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L O C A T I O N S

I N E U R O P E

Sofia, Bulgaria
Haguenau, France
Le Bourget-du-Lac, France
Paris, France

29
Luton, United Kingdom
Rugby, United Kingdom
Southampton, United Kingdom
Milan, Italy
Turin, Italy
Vicenza, Italy
Zagreb, Croatia
Eindhoven, Netherlands
Hengelo, Netherlands
Spankeren, Netherlands
Pasching, Austria
Warsaw, Poland
Zielonka, Poland
Lisbon, Portugal
Bucharest, Romania
Moscow, Russia
Alingsås, Sweden
Baar, Switzerland
Grüsch, Switzerland
Košice, Slovakia
Madrid, Spain
Liberec, Czech Republic
Prague, Czech Republic
Istanbul, Turkey
Budapest, Hungary
LOCATIONS

Selected locations of legally independent

and dependent companies.
82 A W O R L D I N T R A N S I T I O N

L O C A T I O N S

W O R L D W I D E

12 17
A S I A - P A C I F I C

Dongguan, China
Beijing, China
Shanghai, China

A M E R I C A S Shenzhen, China
Taicang, China
São Paulo, Brazil Yangzhou, China
Mississauga, Canada Chennai, India
Apodaca, Mexico Pune, India
LOCATIONS

Querétaro, Mexico Jakarta, Indonesia

Chicago, IL, USA Yokohama, Japan
Costa Mesa, CA, USA Kuala Lumpur, Malaysia
Cranbury, NJ, USA Manila, Philippines
Detroit, MI, USA Singapore, Rep. Singapore
Farmington, CT, USA Seoul, South Korea
Santa Clara, CA, USA Guishan, Taiwan
Seattle, WA, USA Bangkok, Thailand
Wilmington, DE, USA Ho Chi Minh City, Vietnam

Selected locations of legally independent

and dependent companies.
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C O N S O L I D A T E D

F I N A N C I A L

S T A T E M E N T S
84 A W O R L D I N T R A N S I T I O N

C O N S O L I D A T E D
­B A L A N C E S H E E T
AS OF JUNE 30, 2020

ASSETS in k€ Notes 06/30/2020 06/30/2019

FIX ED A S S E T S 1
Intangible assets 143,366 179,730
Tangible assets 1,340,294 1,297,152
Financial assets 81,661 70,027
1,565,321 1,546,909

C U R R EN T A SS E TS

Inventories (after offsetting against down payments received) 2

Inventories 748,957 855,205
Down payments received –147,982 –160,501
600,975 694,704

Receivables 3
Trade receivables 673,345 796,782
Other receivables 8,216 870
681,561 797,652

Other assets 4 213,170 203,954

Cash and cash equivalents, securities 5 790,459 640,276
2,286,165 2,336,586

PR EPA ID EX P E N SES 6 34,945 34,211

D E FE R R E D TA X ASSETS 7 16,849 21,479
3,903,280 3,939,185

EQUITY AND LIABILITIES in k€ Notes 06/30/2020 06/30/2019

EQU ITY 8 2,061,413 2,023,130

SP E C IA L IT E MS 9 6,574 6,424

A C C R U A LS

Accruals for pensions and similar obligations 10 320,802 289,535

Other accruals 11 387,267 432,360
708,069 721,895

LIA B ILITIE S 12
Trade payables 217,583 252,717
Financial liabilities 359,546 365,619
Liabilities to partners 364,940 359,819
Other liabilities 103,056 118,604
1,045,125 1,096,759

D E FE R R E D IN C OM E 13 82,099 90,977
3,903,280 3,939,185

c onsolidated finan c ial state m ents

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C O N S O L I D A T E D P R O F I T
A N D L O S S S T A T E M E N T
FOR FISC AL YEAR 2019/ 20

in k€ Notes 2019/20 2018/19

Sales revenues 14 3,487,668 3,784,010

Cost of goods sold 15 –2,125,271 –2,295,794
Gross profit on sales 1,362,397 1,488,216

Sales costs 16 –476,568 –530,748

Research and development costs 17 –377,445 –395,814
General administrative costs 18 –177,652 –208,643
Other operating income 19 138,544 144,969
Other operating costs 20 –155,022 –146,323
Financial and investment result 21 –45,530 –50,590
Earnings before taxes 268,724 301,067

Taxes on income 22 –69,692 –84,623

Earnings after taxes 199,032 216,444

Gains/losses attributable to minority interests 8 –6,659 –6,272

Consolidated net income after minority interests 192,373 210,172

For informational purposes:

Taxes of partners 22 –60,050 –64,462
Consolidated net income after minority
interests and taxes of partners 132,323 145,710

c onsolidated finan c ial state m ents

86 A W O R L D I N T R A N S I T I O N

S T A T E M E N T O F
­S H A R E H O L D E R S ’ E Q U I T Y
FOR FISC AL YEAR 2019/ 20

Equity of the parent company

Fixed capital and subscribed capital Revenue reserves

in k€ Subscribed Capital shares Total Reserves Other revenue Total

capital according to reserves
partnership
agreement

06/30/2018 3,500 95,000 98,500 216,796 1,456,507 1,673,305

Transfer – – – – – –

Allocation to partners’
accounts within
liabilities – – – – –87,490 –87,490
Allocation to/with­
drawal from reserves – – – 30,000 – 30,000
Foreign currency
­translation – – – – – –
Other changes – – – – –309 –309
Changes in the scope
of consolidation – – – – –365 –365
Group net income/
loss for the year – – – 19,636 190,536 210,172
06/30/2019 3,500 95,000 98,500 266,432 1,558,881 1,825,313

Transfer – – – – – –

Allocation to partners’
accounts within
liabilities – – – – –115,320 –115,320
Allocation to/with­
drawal from reserves – – – –40,000 – –40,000
Foreign currency
­translation – – – – – –
Other changes – – – – 776 776
Changes in the scope
of consolidation – – – – – –
Group net income/loss
for the year – – – 25,845 166,528 192,373
06/30/2020 3,500 95,000 98,500 252,277 1,610,865 1,863,142

c onsolidated finan c ial state m ents

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Minority interests Group equity

Equity Total Minority Equity differ- Gains/losses Total Total

differ­e nce interests ence from attributable
from ­f oreign before equity foreign to minority
currency difference currency interests
translation from foreign translation
currency attributable
translation to minority
and annual interests
result

64,257 1,836,062 32,229 2,480 5,777 40,486 1,876,548

– – 5,777 – –5,777 – –

– –87,490 – – –1,063 –1,063 –88,553

– 30,000 – – – – 30,000

14,288 14,288 – 599 – 599 14,887

– –309 –21,960 –3,071 – –25,031 –25,340

–491 –856 – – – – –856

– 210,172 – – 6,272 6,272 216,444

78,054 2,001,867 16,046 8 5,209 21,263 2,023,130

– – 5,209 – –5,209 – –

– –115,320 – – –905 –905 –116,225

– –40,000 – – – – –40,000

–1,089 –1,089 – –495 – –495 –1,584

–8 768 –4,611 –71 – –4,682 –3,914

974 974 – – – – 974

– 192,373 – – 6,659 6,659 199,032

77,931 2,039,573 16,644 –558 5,754 21,840 2,061,413

c onsolidated finan c ial state m ents

88 A W O R L D I N T R A N S I T I O N

C O N S O L I D A T E D
C A S H F L O W S T A T E M E N T
FOR FISC AL YEAR 2019/ 20

in k€ 2019/20 2018/19

C ON SOLID ATE D NET INCOM E 199,032 216,444

+ / – Elimination of financial and investment result 45,530 50,590
+ / – Elimination of income tax expenses 69,692 84,623
= Group net income before financial and investment result and income taxes 314,254 351,657

– / + Income taxes paid/received –97,253 –92,264

+ / – Elimination of depreciation and amortization/write-ups of fixed assets 196,973 186,882

– / + Elimination of gain/loss from the disposal of fixed assets –278 2,824

– / + Increase/decrease in inventories and trade receivables 212,224 –95,764

+ / – Increase/decrease in trade payables –35,187 –22,629

+ / – Increase/decrease in accruals 1,945 59,215

+ / – Change in other assets and liabilities –37,826 17,253
+ / – Elimination of other non-cash expenses/income –9,799 8,644
= Cash inflow from operating activities 545,053 415,818

– Cash paid for investments in tangible assets –247,651 –350,892

+ Cash received from the disposal of tangible assets 57,899 56,597

– Cash paid for investments in intangible assets –5,339 –7,333

+ Cash received from the disposal of intangible assets 1,466 272

= Subtotal cash outflow from investing activities (operating) –193,625 –301,356

– Cash paid for investments in financial assets –29,759 –30,232

+ Cash received from the disposal of financial assets 632 2,144

+ / – Cash received/paid from the acquisition of consolidated companies –7,828 –184,930

– Cash paid for financial investments as part of short-term cash management –10,761 –33,956
+ Cash received from the sale of consolidated companies 5,081 –

+ Dividends received 872 2,167

+ Interest received 7,201 7,875

= Subtotal cash outflow from investing activities (others) –34,562 –236,932

= Cash outflow from investing activities –228,187 –538,288

– Cash paid to partners –160,260 –104,158

+ Cash received from the issuance of loans and other financial liabilities 2,782 260,292
– Cash repayments of loans and other financial liabilities –6,550 –13,387
– Interest paid –7,232 –3,188
= Cash outflow/inflow from financing activities –171,260 139,559

C H A N G E IN C A SH IN HAND 145,606 17,089

+ / – Change in cash in hand due to exchange rate differences 106 –3,395
+ / – Change in cash in hand due to consolidation activities 4,977 6,148
+ Cash in hand at the start of the fiscal year 589,790 569,948
= Cash in hand at the end of the fiscal year 740,479 589,790

C O MP OS IT ION OF CASH IN HAND

+ Cash and cash equivalents 740,712 590,237
– Liabilities to banks payable on demand –233 –447
= Cash in hand at the end of the fiscal year 740,479 589,790

c onsolidated finan c ial state m ents

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N O T E S T O T H E

C O N S O L I D A T E D

F I N A N C I A L

S T A T E M E N T S
90 A W O R L D I N T R A N S I T I O N

N O T E S T O T H E
­C O N S O L I D A T E D
­F I N A N C I A L S T A T E M E N T S
FOR FISC AL YEAR 2019/ 20

Principles and methods

TRUMPF GmbH + Co. KG and Berthold Leibinger GmbH are listed in the commercial register
of Stuttgart District Court under company registration numbers HRA 201460 and HRB 200720
respectively. Both companies have their head office at Johann-Maus-Strasse 2, 71254 Ditzingen,
Germany.

The consolidated financial statements for the fiscal year 2019/20 have been prepared in accordance
with Section 264a of the German Commercial Code (HGB), applying the provisions of Sections
290 et seq. HGB . The consolidated financial statements have been prepared in accordance with
the accounting and valuation regulations of the HGB applicable to large corporations, taking into
account the separate regulations for partnerships and the supplementary provisions of the parent
companies’ partnership agreements. In accordance with Section 298 (1) HGB in conjunction
with Section 244 HGB , the consolidated financial statements have been prepared in euros. The
consolidated profit and loss statement was prepared according to the cost-of-sales-method.

Various items in the consolidated balance sheet and the consolidated profit and loss statement
have been combined for greater clarity and are disclosed separately in the notes to the con­solidated
financial statements. In view of the required clarity, the statutory balance sheet classi­fication
schema has been expanded to include a detailed breakdown of inventories (after offsetting against
down payments received), receivables, and liabilities.

Accounting and valuation

The financial statements of the companies included in the consolidated financial statements are
steadily prepared in accordance with uniform accounting and valuation principles. If adjustments
to group-wide accounting and valuation principles are necessary due to national regulations, this
is done in a “Handelsbilanz II” (balance sheet for consolidation purposes).

Intangible and tangible assets are stated at acquisition or manufacturing cost, net of regular
amortization or depreciation. Intangible and tangible assets are amortized and depreciated using
the straight-line method.

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For regular amortization and depreciation, the following useful lives are assumed in the main:
3 to 5 years for software, 6 to 12 years for acquired customer bases, 6 to 9 years for technological
know-how, 10 years for trademark rights, 25 to 50 years for buildings, 12 years for technical
equipment and machines, and 3 to 20 years for other equipment and factory and office equipment.
Goodwill is amortized over 5 years on the basis of past internal experience, especially with
regard to product life cycles.

Internally used machines are used for testing or training purposes or as showroom and demons­
tration machines. These are reported under fixed assets and depreciated over 5 years. Machines
leased to customers are also reported under fixed assets and depreciated over the contract term.

Under financial assets, participations are stated at the lower of acquisition cost or fair value on the
balance sheet date and loans are stated at their nominal value. For the accounting and valuation
of shares in associated companies, we refer to the explanations on the consolidation principles.

Inventories of raw materials, consumables and supplies and merchandise are carried at the lower
of acquisition cost or market value. Work in progress and finished goods are valued at manufac-
turing cost. In addition to direct material and production costs, this also includes an appropriate
allocation of material and production overheads and the fixed asset depreciation expenses attrib-
utable to the manufacturing process. Manufacturing costs do not include interest on borrowed
capital, and general administrative costs are not capitalized.

Inventories are written down to fair value if, on the balance sheet date, this is lower than the
acquisition or manufacturing cost due to lower replacement costs or sales market prices, excess
inventories, or unsaleability.

Down payments received are openly deducted from inventories.

Receivables and other assets are stated at the lower of their nominal value or fair value on the
balance sheet date. Appropriate write-downs are made for receivables whose collectability
involves recognizable risks; uncollectable receivables are written off. The general credit risk is
covered by an appropriate lump-sum bad debt allowance for net receivables for which no
specific bad debt allowance has been created.

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Securities in current assets are stated at the lower of acquisition cost or fair value on the balance
sheet date.

Prepaid expenses comprise payments made before the balance sheet date provided that they
represent expenses for a specific period after that date. Debt discounts are capitalized and amor-
tized over the term of the corresponding loans.

Special items include investment grants and subsidies for fixed assets. These are released in
installments over the useful life of the subsidized assets.

Accruals for pensions and similar obligations are measured on the basis of actuarial calculations
using the projected unit credit method, taking into account the 2018 G mortality tables of
Prof. Dr. Heubeck. In accordance with the regulation in Section 253 (1) HGB , the actuarial
calculation of pension accruals takes into account expected future salary and pension increases
and expected fluctuation. Accruals for pensions and similar obligations are discounted at a
flat rate using the average market interest rate of the past ten years, as published by Deutsche
Bundesbank, and based on an assumed remaining term of 15 years.

In the fiscal year 2019/20, the calculation of pension obligations was based on the following
parameters:

– Interest rate: 2.53 % p.a. (previous year 2.95 % p.a.)

– Wage and salary increases: 3.0 % p.a. (previous year 3.0 % p.a.)
– Future pension increases: 1.5 % p.a. (previous year 2.0 % p.a.)

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Accruals for pensions and similar obligations are offset against assets that are used exclusively to
meet these obligations and that cannot be accessed by any other creditors. The fair value of these
offset assets was derived from the market values.

Other accruals take into account all uncertain liabilities and contingent losses on pending trans-
actions. They are stated at the necessary settlement value according to sound business judgment.
Accruals with a remaining term of more than one year have been discounted in accordance with
Section 253 (2) sentence 1 HGB . Economic hedging relationships between derivative financial
instruments and underlying transactions are accounted for by forming valuation units. Accord-
ingly, a provision for onerous contracts is not formed for financial instruments with a negative
market value.

The accruals for obligations relating to phased retirement programs existing on the balance sheet
date have been calculated according to actuarial principles at an interest rate of 0.59 % p.a.
(previous year 0.80 % p.a.). They have been offset against assets that are used exclusively to meet
obligations under the phased retirement program and that cannot be accessed by any other credi-
tors. The fair value was derived from the market values.

Accruals for obligations relating to the “TRUMPF Familien- und Weiterbildungskonto” have
been offset against assets that are used exclusively to meet these obligations and that cannot be
accessed by any other creditors. The fair value was derived from the market values.

Liabilities are stated at their settlement value.

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Deferred income includes receipts prior to the balance sheet date if they constitute income for a
period after that date.

To calculate deferred taxes due to temporary or quasi-permanent differences between the com-
mercial values of assets, liabilities, prepaid expenses and deferred income and their tax values,
or due to tax loss carry forwards, the amounts of the resulting tax burden or relief are valued at
the expected company-specific tax rates at the time the differences are reversed and are not dis-
counted. Deferred tax assets and liabilities are disclosed net. In the event of a surplus of deferred
tax assets on the balance sheet date, no use is made of the option for recognition under Section
274 (1) sentence 2 HGB .

Shareholdings and scope of consolidation

The Leibinger family and the Berthold Leibinger Stiftung GmbH directly and indirectly hold all
shares in TRUMPF GmbH + Co. KG and Berthold Leibinger GmbH, Ditzingen. Both companies
jointly manage all domestic and foreign subsidiaries of the TRUMPF Group. These two companies
are consolidated as joint parent companies. The list of shareholdings can be found in the separate
annex after the notes to the consolidated financial statements.

In addition to the two parent companies, the scope of consolidation includes 25 (previous year 26)
German and 58 (previous year 61) foreign subsidiaries. In the fiscal year 2019/20, one company
has been included in the consolidated financial statements for the first time in accordance with
the principles of full consolidation. The initial consolidation did not have a significant influence
on the results of operations and net assets of the Group so that comparability with the previous
year is not limited. Two companies have been deconsolidated. Three companies have been
merged in the fiscal year 2019/20.

14 (previous year 13) subsidiaries and 5 (previous year 5) associated companies are not included
in the consolidated financial statements for reasons of immateriality. Their combined net income
and sales revenues only account for some 2 % of the consolidated net income and sales revenues,
respectively. Consequently, they are considered as irrelevent for the fair presentation of the financial
position of the Group.

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Consolidation principles

Capital consolidation is carried out using the revaluation method in accordance with Section
301 (1) HGB . In the course of this, the equity of the subsidiaries is recognized at the amount
­corresponding to the fair value of the assets and liabilities to be included in the consolidated
financial statements.

Any residual debit difference remaining after offsetting is reported as goodwill on the assets side
and amortized over its expected useful life.

If the consolidation measures pursuant to Sections 300 to 305 HGB result in differences between
the commercial values of assets, liabilities, as well as their tax base that are expected to reverse
in later fiscal years, the future tax relief or tax charges are recognized as deferred tax assets
or liabilities in the consolidated balance sheet. Deferred taxes are calculated on the basis of the
individual company tax rates applicable at the time when the differences are expected to reverse.
The tax rates are between 9 % and 34 %. Deferred tax assets and liabilities are disclosed net.
Deferred taxes from consolidation measures are combined with the deferred tax liabilities result-
ing from the application of Section 274 HGB to form a single item in the balance sheet.

Intercompany profits and losses resulting from intercompany deliveries of goods and services are
eliminated through the profit and loss account.

Receivables and liabilities between consolidated companies are offset against each other. Since
fiscal year 2019/20, currency-related differences arising from this have been recognized in the profit
and loss statement in accordance with the first-time adoption of German Accounting Standard
(DRS) 25. Revenues from intercompany sales and intercompany income are offset against the
corresponding expenses.

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Foreign currency translation

In the individual financial statements, foreign currency receivables and liabilities are generally
translated at the average spot exchange rate. In the case of a remaining term of more than one
year, the realization principle (Section 298 (1) in conjunction with Section 252 (1) no. 4 clause
2 HGB) and the historical cost principle (Section 298 (1) in conjunction with Section 253 (1)
­sentence 1 HGB) are considered. Bank balances in foreign currencies are translated at the average
spot exchange rate on the balance sheet date.

In the consolidated financial statements, the balance sheet items of subsidiaries not reporting in
euros are translated in accordance with Section 308a HGB using the modified current rate method.
The asset and liability items of annual financial statements prepared in foreign currencies are
translated into euros at the average spot exchange rate on the balance sheet date – with the
exception of equity, which is translated at the historical rate. Items in the profit and loss statements
of subsidiaries not reporting in euros are translated at the average monthly rate. In accordance
with Section 308a HGB , the differences resulting from currency conversion are reported within
group equity after reserves under the item “Equity difference from foreign currency translation”.

Notes to the balance sheet

The numbers stated refer to the corresponding item in the consolidated balance sheet or the
consolidated profit and loss statement.

1. Fixed assets
The development of fixed assets is shown separately in the statement of changes in fixed assets.
Differences resulting from currency translation have been taken into account in the acquisition
or manufacturing cost and in the accumulated depreciation. Extraordinary depreciation amounts
to k€ 4,369 in the fiscal year, of which k€ 2,840 resulted from the devaluation of leasehold
improvements.

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2. Inventories (after offsetting against down payments received)

in k€ 06/30/2020 06/30/2019

Raw materials, consumables and supplies 255,808 293,293

Work in progress 217,816 238,060
Finished goods and merchandise 263,536 315,090
Payments on account 11,797 8,762
Inventories 748,957 855,205
Down payments received –147,982 –160,501
Inventories (after offsetting against down payments received) 600,975 694,704

3. Receivables

Remaining term Remaining term

in k€ 06/30/2020 Up to 1 year More than 06/30/2019 Up to 1 year More than

Total 1 year Total 1 year

Trade receivables 673,345 628,433 44,912 796,782 766,059 30,723

of which from third parties 672,902 627,990 44,912 796,262 765,539 30,723

of which from affiliated

­c ompanies that are not fully
consolidated 443 443 – 520 520 –

Other receivables from

affiliated companies that are
not fully consolidated 8,216 8,216 – 870 870 –
Total receivables 681,561 636,649 44,912 797,652 766,929 30,723

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98 A W O R L D I N T R A N S I T I O N

4. Other assets

in k€ 06/30/2020 06/30/2019

Medium-term financial investments 101,232 90,184

Remaining other assets 111,938 113,770
Other assets 213,170 203,954
of which with a remaining term of more than one year 43,721 51,107

Remaining other assets mainly consist of tax receivables resulting from income tax and value-­
added tax. All financial investments with a maturity of more than three months are reported under
medium-term financial investments. Of the medium-term financial investments amounting to
k€ 101,232, k€ 41,642 have a remaining term of more than one year.

5. Cash and cash equivalents, securities

in k€ 06/30/2020 06/30/2019

Securities in current assets 49,747 50,039

Cash, bank balances and checks (cash and cash equivalents) 740,712 590,237
790,459 640,276

Cash and cash equivalents include short-term promissory notes and short-term financial invest-
ments with a maturity of less than three months.

Securities include units in an investment fund in the form of a special securities fund, which is
reported under securities in current assets as it is intended to be held as a short to medium-term
liquidity investment. The fund’s unit rate is 100 %.

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The special securities fund reported under securities in current assets in turn invests in shares,
bonds, investment funds and bank balances.

in k€ Book value Fair value Distributions

06/30/2020 06/30/2020 2019/20

Special securities fund with short to medium-term investment strategy 49,688 49,688 –

6. Prepaid expenses
Prepaid expenses include vacation allowances, insurance premiums, rent, maintenance contracts,
dues and other prepaid costs caused by the divergent fiscal year.

7. Deferred tax assets

Deferred tax assets and liabilities are disclosed net. The deferred tax assets are the result of con-
solidation measures. The net deferred tax liabilities result from divergent values in the commercial
and the tax financial statement and are mainly attributable to intangible assets, tangible assets and
accruals.

in k€ 06/30/2020 06/30/2019 Change

Deferred tax assets 43,312 51,799 –8,487

Deferred tax liabilities –26,463 –30,320 3,857
Surplus 16,849 21,479

8. Equity

in k€ 06/30/2020 06/30/2019

Fixed capital and subscribed capital 98,500 98,500

Revenue reserves 1,863,142 1,825,313
Equity difference from foreign currency translation 77,931 78,054
Minority interests 21,840 21,263
2,061,413 2,023,130

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100 A W O R L D I N T R A N S I T I O N

Fixed capital and subscribed capital represent the compulsory contributions of the limited
partners of TRUMPF GmbH + Co. KG and the subscribed capital of the general partner. The
compulsory contributions of the limited partners are identical to the risk capital.

The result allocation for the fiscal year 2019/20 has been carried out in accordance with the pro-
visions of the partnership agreements and has already been taken into account in the preparation
of the consolidated financial statements.

Revenue reserves include profits and losses attributable to the general partner and the domestic
and foreign subsidiaries as well as amounts from the offsetting of other consolidation measures.

Minority interests mainly relate to the participations in India Metamation Software Pvt. Ltd,
TRUMPF Hüttinger Sp. z o. o., TRUMPF SISMA S.r.l., TRUMPF Sachsen GmbH, and Auroma
Technologies Co. Dba Access Laser Company. The result allocable to minority interests com-
prises profit shares of k€ 6,660 (previous year k€ 7,748) and loss shares of k€ 1 (previous year
k€ 1,476). The overall development of consolidated equity is shown separately in the statement
of shareholders’ equity.

9. Special items
The special item relates to investment grants and allowances.

10. Accruals for pensions and similar obligations

in k€ 06/30/2020 06/30/2019

Accrual for pensions and similar obligations

(settlement value prior to offsetting) 372,501 340,819

Contractual Trust Agreement

(offset amount) –51,699 –51,284
320,802 289,535

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The fair value of the offset plan assets corresponds to the amortized acquisition cost. The
valuation of the Contractual Trust Agreement as of June 30, 2020 resulted in income of k€ 415.
This has been offset against the interest expense on accruals of k€ 22,560. The difference
between the measurement of the obligation at the average market interest rate for ten years and
the average market interest rate for seven years amounted to k€ 55,842 as of June 30, 2020
(previous year k€ 62,879).

11. Other accruals

The fair value of the offset plan assets of the accruals relating to phased retirement programs
amounted to k€ 9,709 (previous year k€ 8,550) and corresponds to amortized acquisition cost.
The settlement value of the offset accruals relating to phased retirement programs amounted to
k€ 10,075 (previous year k€ 9,004) on the balance sheet date.

The fair value of the offset assets of the accruals for obligations relating to the “TRUMPF Familien-
und Weiterbildungskonto” amounted to k€ 20,689 (previous year k€ 15,147) and corresponds to
amortized acquisition cost. The settlement value of the offset debts also amounted to k€ 20,689
(previous year k€ 15,147).

The netting of expenses and income was waived in each case for reasons of materiality.

in k€ 06/30/2020 06/30/2019

Tax accruals 22,865 49,206

Other accruals 364,402 383,154
387,267 432,360

Other accruals mainly relate to obligations in the personnel and social area, warranty obliga-
tions, outstanding purchase invoices and other contingent liabilities. Furthermore, an accrual of
k€ 2,300 is included for possible claims from a legal dispute.

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12. Liabilities

Remaining term Remaining term

in k€ 06/30/2020 Up to 1 year 1 to 5 years Over 5 years 6/30/2019 Up to 1 year Over 1 year
Total Total

Trade payables 217,583 217,561 22 – 252,717 251,930 787

of which to third
parties 217,018 216,996 22 – 251,467 250,680 787

of which to affil-
iated companies
that are not fully
consolidated 565 565 – – 1,250 1,250 –
Financial liabilities 359,546 73,613 77,764 208,169 365,619 61,054 304,565
of which to banks 43,631 23,993 11,469 8,169 46,419 24,040 22,379

of which other
financial liabilities 315,915 49,620 66,295 200,000 319,200 37,014 282,186
Liabilities to partners 364,940 111,189 253,751 – 359,819 172,396 187,423
Other liabilities 103,056 99,871 2,214 971 118,604 117,165 1,439

of which in
relation to taxes 42,890 42,890 – – 40,880 40,880 –

of which in relation
to social security 5,932 5,932 – – 6,960 6,960 –

of which to affil-
iated companies
that are not fully
consolidated 1,185 1,185 – – 956 956 –

of which remaining
other liabilities 53,049 49,864 2,214 971 69,808 68,369 1,439
Total liabilities 1,045,125 502,234 333,751 209,140 1,096,759 602,545 494,214

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Trade payables are subject to customary retention of title.

Financial liabilities include all interest-bearing liabilities to third parties for financing purposes.
Other financial liabilities consist of loans, savings deposits, a private placement on the US financial
market amounting to k€ 16,736 (previous year k€ 16,736) as well as a promissory note amounting
to k€ 250,000 (previous year k€ 250,000).

Of the liabilities to banks, k€ 21,619 (previous year k€ 24,035) were secured by mortgages.

13. Deferred income

This mainly relates to the deferral of income from maintenance services, training and leasing
contracts, which represent income for a certain period after the balance sheet date.

Notes to the profit and loss statement

14. Sales revenues

18 % (previous year 19 %) of sales revenues were generated in Germany and 82 % (previous year
81 %) outside Germany.

Please refer to the group management report for the breakdown of sales revenues by business
division.

in k€ 2019/20 2018/19

Domestic sales revenues 611,507 720,854

Foreign sales revenues 2,876,161 3,063,156
3,487,668 3,784,010

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15. Cost of goods sold

Cost of goods sold (k€ 2,125,271; previous year k€ 2,295,794) includes all expenses attributable
to products or services sold in the fiscal year and the remaining costs of the operating divisions
Production and Service that were unable to be assigned to particular products or services.

16. Sales costs

Sales costs amounting to k€ 476,568 (previous year k€ 530,748) include all personnel expenses
allocated to the Sales division, other operating costs such as commissions, travel and marketing
costs, depreciation, and material costs for our showrooms. Freight and packaging costs are also
included under this item to the extent that they can be allocated to transport from the production
plant to the customer.

17. Research and development costs

Research and development costs (k€ 377,445; previous year k€ 395,814) include all amounts
spent on basic research or new developments and not related to current production. These
include in particular personnel, non-personnel, and material costs.

18. General administrative costs

General administrative costs in the fiscal year amounted to k€ 177,652 (previous year k€ 208,643)
and include in particular personnel expenses, depreciation and amortization and other
non-personnel costs relating to management, IT, human resources, infrastructure and finance.

19. Other operating income

Other operating income mainly includes exchange rate gains, income from the release of accruals,
income from asset disposals and income from the reduction of value adjustments.

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Income from foreign currency translation amounted to k€ 94,812 (previous year k€ 90,578).
Other operating income amounting to k€ 23,802 (previous year k€ 20,809) is attributable to
other fiscal years. This is mainly income from the release of accruals. Furthermore, research
grants of k€ 3,800 which in part relate to previous fiscal years are included.

20. Other operating costs

Other operating costs mainly include exchange rate losses, bad debt expenses, additions to indi-
vidual and lump-sum bad debt allowances, and operating costs that cannot be clearly allocated
to any other functional area. Expenses from foreign currency translation amounted to k€ 94,435
(previous year k€ 84,736).

21. Financial and investment result

in k€ 2019/20 2018/19

Income from securities and loans 287 603

Income from participations 872 2,167
Other interest and similar income 7,472 8,931
of which from affiliated companies that are not fully consolidated 19 249
Write-downs on financial assets and securities in current assets –312 –6,337
Expenses from participations –1,185 –1,068
Interest and similar expenses –52,664 –54,886
of which from compounding of accruals –37,388 –39,240
–45,530 –50,590

22. Taxes on income

TRUMPF GmbH + Co. KG , its general partner, and the domestic and foreign subsidiaries are
subject to effective and deferred trade and corporate income taxes. The effective tax expenses in
the year under review amounted to k€ 65,958 (previous year k€ 93,163).

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106 A W O R L D I N T R A N S I T I O N

Expenses from deferred taxes amounted to k€ 3,734 (previous year income of k€ 8,540) in
the fiscal year. These resulted from income of k€ 681 (previous year k€ 1,094) from differences
in the carrying amounts in the commercial and tax balance sheet and expenses of k€ 4,415
(previous year income of k€ 7,446) from consolidation measures.

In accordance with Section 264c (3) HGB , the partners’ taxes on income have been presented
for information purposes after the consolidated net income for the year. They were not included
in the calculation of deferred taxes.

23. Personnel costs

The expense items in the profit and loss statement include personnel costs in the following
amounts:

in k€ 2019/20 2018/19

Wages and salaries 885,759 925,098

Social security and other welfare costs 163,743 162,230
Expenditure on pension schemes 6,672 32,975
1,056,174 1,120,303

Notes to the cash flow statement

24. Composition of cash in hand

Cash in hand includes cash and cash equivalents (k€ 740,712) and liabilities to banks payable
on demand (k€ 233).

Short-term investments can be converted into cash within a maximum of three months.
Liabilties to banks payable on demand relate to bank overdrafts.

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Other disclosures

25. Contingent liabilities

in k€ 06/30/2020

Liabilities from bills of exchange 1,389

Liabilities from warranty agreements 6,966
Liabilities from guarantees 78,234
86,589

With regard to the sound financial position of the companies for which guarantees and warranty
agreements have been assumed, the risk of claims arising from contingent liabilities is considered
to be low.

26. Derivative financial instruments and valuation units

Nominal amount Fair value Book value Balance sheet item

Foreign exchange-related transactions k€ 728,872 k€ –11,568 – –

Other transactions k€ 16,736 k€ 1,236 – –

Foreign exchange-related transactions are forward exchange transactions and currency swaps
in the currency pairs EUR / JPY, EUR / KRW, EUR / USD, EUR /GBP, EUR /CHF, EUR / PLN , and
EUR /CNY. Other transactions include combined interest and currency hedging transactions in
EUR / USD.

Appropriate accruals have been made for hedging transactions that were not included in valua-
tion units and have a negative fair value on the balance sheet date. The valuation is carried out
using generally accepted valuation methods such as present value and option price models.

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The following valuation units have been formed:

Underlying transaction/hedging Risk/type of valua- Included Hedged amount Hedged risk Hedging Hedging
transaction tion unit amount scope time frame

Third-party sales/ Foreign exchange

Forward exchange transactions risk/Macro hedge k€ 177,790 kJPY 21,300,000 k€ –1,077 98 % 06/30/2024
Third-party sales/ Foreign exchange
Forward exchange transactions risk/Macro hedge k€ 18,000 kKRW 23,391,230 – 84 % 06/30/2021
Third-party sales/
Liabilities to suppliers/ Foreign exchange
Forward exchange transactions risk/Macro hedge k€ 411,170 kUSD 484,550 k€ –17,019 85 % 06/30/2024
Third-party sales/ Foreign exchange
Forward exchange transactions risk/Macro hedge k€ 9,816 kGBP 8,649 k€ –105 60 % 06/30/2022
Liabilities to suppliers/ Foreign exchange
Forward exchange transactions risk/Macro hedge k€ 36,129 kCHF 40,800 – 67 % 06/30/2021
Liabilities to suppliers/ Foreign exchange
Forward exchange transactions risk/Macro hedge k€ 54,455 kPLN 246,000 k€ –64 74 % 06/30/2023
Third-party sales/ Foreign exchange
Forward exchange transactions risk/Macro hedge k€ 21,512 kCNY 168,837 k€ –20 94 % 06/30/2021
Financial liabilities/ Interest and foreign
Combined interest and foreign exchange risk/
exchange hedges Micro hedge k€ 16,736 kUSD 20,000 – 100 % 01/26/2021

With regard to the valuation units existing on the balance sheet date, the following applies pursuant
to Section 254 HGB:

Economic hedging relationships are reflected in the balance sheet through the formation of valuation
units. Due to the consistency of the main value-determining components, the opposing changes in
value between the underlying and hedging transactions offset each other completely over the entire
hedging period. The effectiveness of the hedging measures is regularly monitored as part of the existing
risk management system. The evaluation is performed using the critical term match method. Any
necessary adjustments to the hedging strategy are made promptly. An effective hedging relationship
can therefore be assumed both prospectively and retrospectively.

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In order to hedge foreign exchange risks from highly probable transactions, forward exchange
transactions are entered into which correspond to the expected net cash flow in terms of their
term, nominal amount and foreign currency (macro hedges). The highly probable cash inflows
and outflows from planned sales and procurement transactions are derived from the corporate
planning process. Reviews of past planning results have shown that the recognized transactions
are highly probable.

27. Off-balance sheet transactions

In the year under review there were off-balance sheet transactions in the form of operate lease
agreements. These mainly relate to motor vehicles and office equipment and were concluded for
cost-efficiency reasons. Ongoing leasing installments in the fiscal year 2019/20 totaled k€ 9,382.

28. Other financial obligations

in k€ 06/30/2020

Rent, lease, and leasing agreements and other obligations 107,075

Purchase commitments for capital projects in progress 32,112
139,187

In addition to the financial commitments listed above, obligations from master agreements and
regular purchase commitments exist in the course of ongoing business to a customary extent.

29. Auditor’s fee

The total fee charged by the auditor for the fiscal year amounted to k€ 1,896 (previous year
k€ 2,117) and can be broken down as follows:

in k€ 2019/20 2018/19

Audit of financial statements 759 678

Tax consulting services 843 873
Other services 294 566

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110 A W O R L D I N T R A N S I T I O N

30. Employees
The average headcount during the year was:

2019/20 2018/19

Germany Employees 6,981 6,965

Trainees 376 358
Other countries Employees 6,843 6,819
Trainees 137 127
14,337 14,269

31. Management
The persons stated below are responsible for managing the TRUMPF Group. The remuneration of
the management of the parent company, Berthold Leibinger GmbH, for the performance of their
duties in the parent company and the subsidiaries amounted to k€ 8,755 (previous year k€ 9,096).

Pension commitments of k€ 15,740 (previous year k€ 14,147) were granted and accrued to former
members of management. In the fiscal year 2019/20, former managing directors or their surviving
dependents received emoluments amounting to k€ 1,079 (previous year k€ 1,034).

32. Exemption in accordance with the German Commercial Code (HGB)

For the following corporations, use is made of the exemption under Section 264 (3) HGB: TRUMPF
Werkzeugmaschinen Beteiligungs-GmbH, TRUMPF Werkzeugmaschinen Deutschland Vertrieb +
Service Beteiligungs-GmbH, TRUMPF Werkzeugmaschinen Teningen GmbH, TRUMPF International
Beteiligungs-GmbH, TRUMPF Laser- und Systemtechnik GmbH, TRUMPF Hüttinger Verwaltung
GmbH, TRUMPF Laser GmbH, Celtia Verwaltungs-GmbH, TRUMPF Lasertechnik GmbH,
TRUMPF Finance GmbH, Berthold Leibinger Immobilien GmbH, TRUMPF Kapitalbeteiligungen
GmbH, TRUMPF Sachsen GmbH, TRUMPF Scientific Lasers Verwaltungsgesellschaft mbH,
I­ NGENERIC GmbH, and TRUMPF Lasersystems for Semiconductor Manufacturing GmbH.

For the following commercial partnerships within the meaning of Section 264a (1) HGB, use has
been made of the exemption to prepare annual financial statements pursuant to Section 264b HGB in
accordance with the provisions applicable to corporations: TRUMPF GmbH + Co. KG, TRUMPF
Werkzeug­maschinen GmbH + Co. KG, TRUMPF Hüttinger GmbH + Co. KG, TRUMPF Immobilien
GmbH + Co. KG, TRUMPF Werkzeugmaschinen Deutschland Vertrieb + Service GmbH + Co. KG,
and TRUMPF Scientific Lasers GmbH + Co. KG.

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33. Supervisory Board

Section 1 (1) no. 2 of the German Co-Determination Act (MitbestG) stipulates that a company
above a certain size must appoint a supervisory board. In accordance with Section 7 (1) no. 1
MitbestG, Berthold Leibinger GmbH has fulfilled this obligation with effect from fiscal year 1998/99.
The Supervisory Board has twelve members.

The total remuneration of the Supervisory Board amounted to k€ 125 (previous year k€ 129).

34. Related party transactions

All transactions with related parties were at arm’s length.

35. Appropriation of earnings

The management of Berthold Leibinger GmbH proposes that earnings be carried forward.
The appropriation of earnings of TRUMPF GmbH + Co. KG is carried out in accordance
with the partnership agreement.

36. Supplementary report

The shares in BESPOON SAS were sold and transferred on July 31, 2020. The sale has a positive
effect on earnings before taxes of k€ 13,294.

Further events of particular significance have not occurred since the end of the fiscal year.

Ditzingen, September 14, 2020

TRUMPF GmbH + Co. KG

Berthold Leibinger GmbH
Dr. phil. Nicola Leibinger-Kammüller, President and Chairwoman
Dr.-Ing. E. h. Peter Leibinger, Vice Chairman
Dr.-Ing. Mathias Kammüller
Dr. rer. pol. Lars Grünert
Dr.-Ing. Heinz-Jürgen Prokop
Dr.-Ing. Christian Schmitz

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112 A W O R L D I N T R A N S I T I O N

D E V E L O P M E N T O F
T H E C O N S O L I D A T E D
F I X E D A S S E T S
FOR FISC AL YEAR 2019/ 20

Acquisition and manufacturing cost

in k€ 07/01/2019* Changes Changes in Additions Disposals Reclassifi­ 06/30/2020

attributable the scope of cations
to currency consolida­
translation tion
effects

IN TA N G IB LE A SSETS

Acquired concessions, industrial

and similar rights, licenses 217,181 501 –63 4,548 –4,223 1,633 219,577
Goodwill 186,752 –1,440 152 6,079 –1,521 – 190,022
Payments on account 1,118 – – 676 – –1,527 267
405,051 –939 89 11,303 –5,744 106 409,866

TA N G IB LE A SS E TS

Land and buildings 1,079,673 443 2,233 55,069 –1,413 52,101 1,188,106
Technical equipment and
machines 549,924 –9 1,152 81,507 –103,591 12,938 541,921
Other equipment, factory
and office equipment 519,908 –421 597 37,950 –22,279 6,343 542,098
Payments on account and assets
under construction 113,943 263 – 74,345 –1,343 –71,488 115,720
2,263,448 276 3,982 248,871 –128,626 –106 2,387,845

FIN A N C IA L A SS ETS

Shares in affiliated companies 59,387 71 –9,577 17,630 –11,116 – 56,395

Shares in associated companies 2,438 – – 321 –306 25 2,478
Loans to affiliated companies 10,447 – – 6,953 – – 17,400
Participations 3,827 2 – 1,419 – –25 5,223
Long-term investments 1,276 54 – – –290 – 1,040
Other loans 1,784 –26 – 56 –36 – 1,778
79,159 101 –9,577 26,379 –11,748 – 84,314
TOTA L 2,747,658 –562 –5,506 286,553 –146,118 – 2,882,025

* The previous year’s figures have been adjusted due to retrospective changes in the opening balances of a company that was consolidated for the first time
in the previous year.

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Accumulated depreciation and amortization Book value

07/01/2019* Changes Changes in Additions Disposals Reclassifi­ Write-ups 06/30/2020 06/30/2020 06/30/2019
attributable the scope of cations
to currency consolida­
exchange tion
effects

–130,436 –566 –38 –21,453 4,279 16 4 –148,194 71,383 86,742

–95,057 1,473 – –24,732 – – 10 –118,306 71,716 91,928
– – – – – – – – 267 1,060
–225,493 907 –38 –46,185 4,279 16 14 –266,500 143,366 179,730

–349,122 –1,708 –186 –34,585 966 –431 2 –385,064 803,042 730,069

–282,736 625 –114 –61,981 51,713 385 21 –292,087 249,834 266,877

–331,203 101 –119 –53,646 18,109 20 240 –366,498 175,600 189,094

–2,887 –25 – –1,217 217 10 – –3,902 111,818 111,112

–965,948 –1,007 –419 –151,429 71,005 –16 263 –1,047,551 1,340,294 1,297,152

–8,006 – –200 – 6,356 – – –1,850 54,544 51,381

–8 – – – – – – –8 2,470 2,430
– – – – – – – – 17,400 10,447
–54 – – – – – – –54 5,169 3,773
–1,064 –40 – – – – 364 –740 300 212
– – – – – – – – 1,778 1,784
–9,132 –40 –200 – 6,356 – 364 –2,652 81,661 70,027
–1,200,573 –140 –657 –197,614 81,640 – 641 –1,316,703 1,565,321 1,546,909

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114 A W O R L D I N T R A N S I T I O N

L I S T O F
S H A R E H O L D I N G S
AS OF JUNE 30, 2020

Company Share of ownership

TRUMPF GmbH + Co. KG

Direct Indirect

Fully consolidated subsidiaries

TRUMPF Werkzeugmaschinen Beteiligungs-GmbH, Ditzingen 100
TRUMPF Werkzeugmaschinen GmbH + Co. KG, Ditzingen 1 100
TRUMPF Werkzeugmaschinen Deutschland Vertrieb + Service GmbH + Co. KG, Ditzingen 1 100
TRUMPF International Beteiligungs-GmbH, Ditzingen 100
TRUMPF Werkzeugmaschinen Deutschland Vertrieb + Service Beteiligungs-GmbH, Ditzingen 100
TRUMPF Laser- und Systemtechnik GmbH, Ditzingen 100
TRUMPF Hüttinger Verwaltung GmbH, Freiburg i. Br. 90
TRUMPF Hüttinger GmbH + Co. KG, Freiburg i. Br. 1 90
TRUMPF Lasersystems for Semiconductor Manufacturing GmbH, Ditzingen 100
TRUMPF Sachsen GmbH, Neukirch 97.2
TRUMPF Laser GmbH, Schramberg 100
Celtia Verwaltungs-GmbH, Reutlingen 100
TRUMPF Financial Services GmbH, Ditzingen 100
TRUMPF Lasertechnik GmbH, Ditzingen 100
TRUMPF Finance GmbH, Ditzingen 100
TRUMPF VSZ Grundstücksverwaltungsgesellschaft mbH + Co. KG Mainz 2 94
Berthold Leibinger Immobilien GmbH, Ditzingen 100
TRUMPF Immobilien GmbH + Co. KG, Ditzingen 1 100
Hüttinger Grundstücks-Vermietungsgesellschaft mbH + Co.
Objekt Freiburg KG, Pullach i. Isartal 2 84.6
TRUMPF Kapitalbeteiligungen GmbH, Ditzingen 100
TRUMPF Scientific Lasers Verwaltungs-GmbH, Unterföhring 100
TRUMPF Scientific Lasers GmbH + Co. KG, Unterföhring 1 100
INGENERIC GmbH, Aachen 100
TRUMPF Werkzeugmaschinen Teningen GmbH, Teningen 100
TRUMPF Photonic Components GmbH, Ulm 100
TRUMPF Schweiz AG, Grüsch, Switzerland 100
TRUMPF Finance (Schweiz) AG, Baar, Schweiz 100
TRUMPF, Inc., Farmington, Connecticut, USA 100
TRUMPF Huettinger Inc., Santa Clara, California, USA 90
TRUMPF Photonics, Inc., Cranbury, New Jersey, USA 100

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Company Share of ownership

TRUMPF GmbH + Co. KG

Direct Indirect

SPI Lasers LLC, Santa Clara, California, USA 100

TRUMPF Limited, Luton, United Kingdom 100
SPI Lasers plc, Southampton, United Kingdom 100
SPI Lasers UK Limited, Southampton, United Kingdom 100
TRUMPF Corporation, Yokohama, Japan 100
FA Service Corporation, Yokohama, Japan 100
TRUMPF S.A.S., Paris, France 100
TRUMPF Machines S.A.R.L., Haguenau, France 100
TRUMPF Máquinas Ind. E. Com. Ltda., Sao Paulo, Brazil 100
Auroma Technologies Co. Dba Access Laser Company, Everett, Washington, USA 85
TRUMPF maskin ab, Alingsas, Sweden 100
TRUMPF Maquinaria S.A., Madrid, Spain 100
TPT Máquinas-Ferramentas e Laser, Unipessoal, Lda, Porto Salvo, Portugal 100
TRUMPF Maschinen Austria GmbH, Pasching, Austria 100
TRUMPF Maschinen Austria GmbH & Co. KG, Pasching, Austria  1 100
TRUMPF Homberger S.r.l., Buccinasco (Milan), Italy 100
TRUMPF Macchine Italia S.r.l., Lonigo (Vicenza), Italy 100
TRUMPF SISMA S.r.l., Piovene Rocchelle (Vicenza), Italy 55
TRUMPF Pte Ltd., Singapore, Singapore 100
TRUMPF Korea Co., Ltd., Seoul, South Korea 100
TRUMPF Malaysia Sdn Bhd, Kuala Lumpur, Malaysia 100
SPI Lasers Korea Ltd., Seoul, South Korea 100
TRUMPF (India) Private Limited, Pune, India 100
India Metamation Software Pvt. Ltd, Chennai, India 51
TRUMPF Praha spol. s.r.o., Prague, Czech Republic 100
TRUMPF Strojírenská výroba CZ s.r.o., Liberec, Czech Republic 100
TRUMPF Liberec, spol. s.r.o., Liberec, Czech Republic 100
TRUMPF Shared Services sp. z o.o., Warsaw, Poland 100
TRUMPF Polska Sp. z o.o. Sp. k., Warsaw, Poland 1 100
TRUMPF Polska Sp. z o.o., Warsaw, Poland 100
TRUMPF Hüttinger Sp. z o.o., Zielonka, Poland 90
TRUMPF Hungary Kft, Budapest, Hungary 100

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116 A W O R L D I N T R A N S I T I O N

Company Share of ownership

TRUMPF GmbH + Co. KG

Direct Indirect

TRUMPF Bulgaria Ltd., Sofia, Bulgaria 100

TRUMPF Laser + Machinery S.R.L., Bucharest, Romania 100
TRUMPF Sheet Metal Products (Taicang) Co., Ltd., Taicang, China 100
TRUMPF (China) Co., Ltd., Taicang, China 100
TRUMPF HÜTTINGER Electronics (Shanghai) Co., Ltd., Shanghai, China 90
SPI Lasers (Shanghai) Co. Ltd., Shanghai, China 100
Jiangsu Jinfangyuan CNC Machine Co., Ltd., Jiangsu Province, China 100
TRUMPF Technology (Shanghai) Co., Ltd., Shanghai, China 100
TRUMPF Mexico S. de R.L. de C.V., Apodaca, Mexico 100
TRUMPF Mexico Services S. de R.L. de C.V., Apodaca, Mexico 100
TRUMPF Slovakia, s.r.o., Kosice, Slovakia 100
TRUMPF Canada Inc., Mississauga, Ontario, Canada 100
TRUMPF Nederland B.V., Hengelo, Netherlands 100
TRUMPF Photonic Components B.V., Eindhoven, Netherlands 100
TRUMPF OOO, Moscow, Russia 100
TRUMPF Taiwan Industries Co., Ltd., Gueishan Shiang, Taoyuan County, Taiwan 100
PT. TRUMPF Indonesia, Jakarta, Indonesia 100
TRUMPF Philippines Inc., Manila, Philippines 100
TRUMPF Ltd., Bangkok, Thailand 100
TRUMPF VIETNAM COMPANY LIMITED, Ho Chi Minh City, Vietnam 100
TRUMPF Makina Sanayii A.Ş., Istanbul, Turkey 100

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Company Share of ownership

TRUMPF GmbH + Co. KG

Direct Indirect

Companies not included in the consolidated financial statement

XETICS GmbH, Stuttgart 100
JT Optical Engine Verwaltungs-GmbH, Jena 3 50
Findos SC Investor Fund II GmbH & Co. KG, Munich 24.995
TRUMPF Venture GmbH, Ditzingen 100
FG4 Beteiligungs-GbR, Ditzingen 25
Amphos GmbH, Herzogenrath 100
Q.ant GmbH, Stuttgart 100
One Click Metal GmbH, Tamm 100
ZIGPOS GmbH, Dresden 25.1
HBH Mircowave GmbH, Stutensee 90
Toref Technica Co., Ltd., Aichi, Japan 25
BESPOON SAS, Le Bourget du Lac, France 60
Stellar Industries Corp., Wilmington, Delaware, USA 100
ACCESS LASER (SHENZHEN) CO.,LTD, Shenzhen, China 85
SHENZHEN EVERBRITE CD.,LTD, Shenzhen, China 85
TRUMPF Engineering Services Italy S.r.l., Orbassano/Turin, Italy 75
Bruma Machinehandel B.V., Spankeren, Netherlands 100
c2go inprocess solutions GmbH, Berlin 3 100
Amphos Inc, Wilmington, Delaware, USA 100

1 E ntities whose unlimited liability partners are the joint parent companies or another entity that is included in the group of consolidated companies.
2 Companies are consolidated as, from an economic standpoint, the opportunities and risks accrue to the parent company.
3 In liquidation.

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118 A W O R L D I N T R A N S I T I O N

I N D E P E N D E N T
A U D I T R E P O R T
F O R T R U M P F GM B H + C O . K G A N D B E R T H O L D L E I B I N G E R GM B H

Audit opinion

We have audited the consolidated financial statements prepared by TRUMPF GmbH + Co. KG ,
Ditzingen, and Berthold Leibinger GmbH, Ditzingen, comprising the consolidated balance
sheet as of June 30, 2020, the consolidated profit and loss statement, the consolidated cash flow
statement, and the statement of shareholders’ equity for the fiscal year from July 1, 2019 to
June 30, 2020 as well as the notes to the financial statements, including the accounting policies
and valuation methods. We have also audited the group management report of TRUMPF GmbH
+ Co. KG and Berthold Leibinger GmbH for the fiscal year from July 1, 2019 to June 30, 2020.

In our opinion, which is based on the findings of our audit,

– the attached consolidated financial statements comply in all material respects with the rules
provided for by German commercial law, comply with German generally accepted accounting
principles, and give a true and fair view of the Group’s net assets and financial position as
of June 30, 2020 and its results of operations for the fiscal year from July 1, 2019 to June 30,
2020, and

– the attached Group management report provides on the whole an accurate picture of the
Group’s situation. In all material respects, the Group management report is consistent with
the consolidated financial statements, complies with the German statutory requirements,
and accurately represents the opportunities and risks of future development.

In accordance with Section 322 (3) sentence 1 of the German Commercial Code (HGB),
we state that our audit has not led to any reservations concerning the regularity of either
the consolidated financial statements or the Group management report.

Basis for the audit opinion

We carried out our audit of the consolidated financial statements and Group management report
in accordance with Section 317 of the HGB and in compliance with the generally accepted audit-
ing principles of the Institute of German Certified Public Accountants (IDW). Further details of
our responsibility in accordance with these provisions and principles are given below in the section

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A N N U A L R E P O R T 2 0 1 9 / 2 0
119

entitled “Responsibility of the auditors for auditing the consolidated financial statements and
Group management report.” We are independent of the Group companies, in accordance with
German commercial law and professional regulations, and have fulfilled our other German profes-
sional obligations in compliance with these requirements. We believe that the audit evidence we
have obtained provides an adequate and suitable basis for our audit opinion on the consolidated
financial statements and Group management report.

Other information

The Supervisory Board is responsible for the information disclosed in the Supervisory Board
Report, which forms part of the annual report. Otherwise, the legal representatives are
responsible for the other information provided. The term “other information” comprises those
components of the annual report of which we received a version prior to expressing this
audit opinion, in particular the sections “Message from the Group Managing Board” and
“Supervisory Board Report.”

Our audit opinion on the consolidated financial statements and Group management report does
not cover this other information and, accordingly, we are not expressing any audit opinion on,
nor drawing any other form of conclusion from, this information.

In the context of our audit, we are responsible for reading the other information and for
assessing whether it

– departs in any material way from the consolidated financial statements, Group management
report or the findings of our audit, or

– misstates the facts in any other material way.

If, in the performance of our duties, we gain the impression that this other information
misstates the facts in any material way, we are obligated to report on this. We have nothing
to report in this respect.

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120 A W O R L D I N T R A N S I T I O N

Responsibility of the legal representatives and the Supervisory Board for

the consolidated financial statements and Group management report

The legal representatives are responsible for preparing the consolidated financial statements
so that they conform, in all material respects, to German commercial regulations, and also for
ensuring that the consolidated financial statements comply with German generally accepted
accounting principles and give a true and fair view of the Group’s net assets, financial position
and results of operations. Further, the legal representatives are responsible for those internal
controls that they deem necessary in accordance with German generally accepted accounting
principles in order to facilitate the preparation of consolidated financial statements that are
free of any material misstatements, whether intended or unintended.

When preparing the consolidated financial statements, the legal representatives are responsible
for assessing the Group’s ability to continue operating. They are also responsible for disclosing
matters relating to the continuing operation of the Group, to the extent that these are relevant.
In addition, they are responsible for preparing the accounts in accordance with the accounting
principle of continuing operations, except to the extent that this is contrary to fact or law.

Furthermore, the legal representatives are responsible for preparing a Group management report
that, on the whole, provides an accurate picture of the Group’s situation and, in all material
respects, is consistent with the consolidated financial statements, complies with German com-
mercial regulations, and accurately represents the opportunities and risks of future development.
In addition, the legal representatives are responsible for those precautions and measures (sys-
tems) they deem necessary to enable preparation of the Group management report in compliance
with the applicable German statutory regulations and to furnish adequate suitable evidence for
the statements made in the Group management report.

The Supervisory Board is responsible for monitoring the accounting processes the Group uses to
prepare the consolidated financial statements and Group management report.

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A N N U A L R E P O R T 2 0 1 9 / 2 0
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Responsibility of the auditors for auditing the consolidated financial

statements and Group management report

Our objective is: firstly, to obtain reasonable certainty that the consolidated financial statements
as a whole are free of any material misstatements – whether intended or unintended – and that
the Group management report as a whole provides an accurate picture of the Group’s situation
and is, in all material respects, consistent with the consolidated financial statements and with
the audit findings, complies with the German statutory regulations, and accurately represents the
opportunities and risks of future development; and, secondly, to express an audit opinion that
reflects the findings of our audit of the consolidated financial statements and Group management
report.

Reasonable certainty means a high level of certainty, but does not constitute any guarantee that
an audit conducted in accordance with Section 317 of the HGB , and in compliance with the
generally accepted auditing principles of the Institute of German Certified Public Accountants
(IDW ), will always bring to light any misstatement. Misstatements may result from breaches
or inaccuracies and are deemed material if there is reasonable expectation that, individually
or together, they could influence economic decisions taken by readers on the basis of these con-
solidated financial statements or Group management report.

During the audit, we exercise due discretion and maintain a critical stance. In addition

– we identify and assess the risks of material – intended or unintended – misstatements in
the consolidated financial statements and Group management report, plan and perform audit
procedures in response to those risks, and obtain adequate and suitable audit evidence to pro-
vide a basis for our audit opinions. The risk that material misstatements may not be detected is
greater for breaches than for inaccuracies, as breaches may involve fraudulent collusion, falsi-
fication, intentional incompleteness, misrepresentation, or the overriding of internal controls;

– 
we gain an understanding of the internal control system relevant to the audit of the consolidated
financial statements, and of the precautions and measures relevant to the audit of the Group
management report, in order to plan audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of those systems;

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122 A W O R L D I N T R A N S I T I O N

– we evaluate the appropriateness of the accounting policies used by the legal representatives
and the reasonableness of the estimates and related disclosures presented by the legal
representatives;

– we draw conclusions on the appropriateness of the accounting principle of continuing

operations applied by the legal representatives and, on the basis of the findings of the audit,
whether there is any material uncertainty about events or circumstances that could give rise
to significant doubts about the Group’s ability to continue as a going concern. If we come to
the conclusion that there is any material uncertainty, we are obligated, in our audit opinion,
to draw attention to the corresponding disclosures in the consolidated financial statements
and Group management report or, should these disclosures be appropriate, to modify our
audit opinion in each case. We draw our conclusions on the basis of the audit evidence available
to us as of the date of our audit opinion. Future events or circumstances, however, may result
in the Group no longer being able to continue its operations;

– we evaluate the overall presentation, the structure and the content of the consolidated financial
statements, including the disclosures, as well as whether the consolidated financial statements
present the underlying transactions and events in such a way as to give a true and fair view of
the Group’s net assets, financial position and results of operations in accordance with German
generally accepted accounting principles;

– we obtain adequate and suitable audit evidence for the accounting information of the Group
companies or the Group’s business activities in order to express an opinion on the consolidated
financial statements and Group management report. We are responsible for directing, monitoring
and performing the audit of the consolidated financial statements. We bear sole responsibility
for our audit opinion;

– we assess the Group management report’s consistency with the consolidated financial state-
ments, its legal conformity, and the picture it presents of the situation of the Group;

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A N N U A L R E P O R T 2 0 1 9 / 2 0
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– we perform audit procedures on the forward-looking statements made by the legal represen­
tatives in the Group management report. On the basis of adequate and suitable audit evidence,
we verify, in particular, the significant assumptions made by the legal representatives,
and assess whether the forward-looking statements made are properly derived from these
assumptions. We do not express any independent opinion on either the forward-looking state-
ments or the underlying assumptions. There is a significant and unavoidable risk that future
events will differ materially from the forward-looking statements.

Together with those responsible for monitoring, we discuss, among other things, the planned
scope and timing of the audit and any significant findings of the audit, including any deficiencies
in the internal control system that we identify during our audit.

Stuttgart, September 14, 2020

ERNST & YOUNG GMBH

WIRTSCHAF TSPRÜFUNGSGESELL SCHAF T

MARBLER HEUBACH
GERMAN PUBLIC AUDITOR GERMAN PUBLIC AUDITOR

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124 A W O R L D I N T R A N S I T I O N

I M P R I N T

P U B L I S H E D B Y R E A L I Z A T I O N

TRUMPF GmbH + Co. KG CONCEPT AND DESIGN

Strichpunkt GmbH, Stuttgart/Berlin

Corporate Communications and Brand www.strichpunkt-design.de

PHOTOGRAPHS

Front flap: Electronic Publishing Stefan

I D E A   A N D   E D I T O R I A L
Berner GmbH, Oliver Graf Fotostudio GmbH,
Studio Float GmbH
Dr. Andreas Möller (responsible)
P. 02: Verena Müller
Rainer Berghausen
P. 06/07: Getty Images – Corbis Documentary/
Catharina Daum
Neil Emmerson, DigitalVision/Thomas
Susanne Hartlieb
Northcut, Unsplash – Logan Weaver,
Dr. Manuel Thomä
picture alliance – dpa
Melina Wirkner
Cover + P. 08–13: Wolfram Scheible,
GROB-WERKE GmbH & Co. KG
Cover + P. 14–19: Frederik Dulay-Winkler
C O N T A C T Cover + P. 20–25: Kunal Daswani
Cover + P. 26–31: Geoff Johnson
TRUMPF GmbH + Co. KG P. 34/35 + 38: Cira Moro
Johann-Maus-Strasse 2 P. 42: Getty Images – Stone/Howard Kingsnorth
71254 Ditzingen P. 43: Luftbild Brugger GmbH
+49 7156 303-0 P. 44/45: Steve Hall + Merrick Photographers
info@trumpf.com Back flap: Martin Stollberg,
Electronic Publishing Stefan Berner GmbH,
Oliver Graf Fotostudio GmbH, Alexander Zettl
Back cover: Getty Images – Moment/Bento
Fotography, Moment/DuKai photographer,
Moment/Sandro Bisaro, Johns Hopkins University

REPRO

ctrl-s GmbH
www.ctrl-s.de

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Raff Media Group GmbH

www.raff-mediagroup.de

NOTE
With the exception of the Editorial and the Management
Board and Supervisory Board Reports, only the masculine
form is used predominantly throughout this Annual
Report for the sake of readability, but it should be taken
ID-No. 2094415
to refer to persons of both genders.

I m print
 T E C H N O AL NO NG UI A
C LA L
R E P O R T S
Technological highlights

1 1 / 2 0 1 9
2 0 1 6
D I G I TA L A SS I STA N T H E L P S
PRODUC TION EM PLOYEES

The new Workmate software solution displays information to

machine operators to facilitate their everyday work, from assistance
with setting up machines to recommendations for packaging parts.
With access to everything that matters, the software saves on search
times and promotes independent and efficient working.
Workmate also assists with manual jobs such as welding and assem-
bly, for example. Here, the software solution provides in-depth
Software solution work and health and safety instructions.
Workmate

1 1 / 2 0 1 9

NEW 3D PRINTER FOR MEDICAL TECHNOLOGY

The TruPrint 2000 is particularly well suited to industries with high

quality standards, such as medical technology. The flow of inert
gas from the rear and forward through the system is exceptionally
uniform. This raises the quality of the printed parts. What’s more,
the operator can get rid of excess powder on the part while it is
still in the machine. The new system uses inert gas to prepare the
printing powder. This prevents any contamination from entering
the circulating powder
2 0 1 5 system.
/ 2 0 1 6 This is a significant advantage in 2 016 / 2 017
sensitive industries such as medical technology. Tr u P r i n t 2 0 0 0

1 1 / 2 0 1 9

T R U L A S E R S T A T I O N 7 0 0 0 E F F I C I E N T LY
WELDS LARGE ENDOSCOPES

With its laser power of up to 4 kW and 150 % larger installation

space, the TruLaser Station 7000 3D laser welding system ensures
greater productivity. The machine also has no problem welding
larger components and deeper seams. Productivity is increased by
higher feedrates and faster part production. Another new feature
is smart image processing, which automatically corrects the laser
beam if the part is crooked. This improves process reliability and
reduces wastage. The TruLaser Station 7000 is especially suitable
Tr u L a s e r S t a t i o n
for complex instruments in medical technology, such as endoscope
7000
production.

2 017 / 2 018 2018 / 2019

2 0 1 9
124 A W O R L D I N T R A N S I T I O N

I M P R I N T

P U B L I S H E D B Y R E A L I Z A T I O N

TRUMPF GmbH + Co. KG CONCEPT AND DESIGN

Strichpunkt GmbH, Stuttgart/Berlin

Corporate Communications and Brand www.strichpunkt-design.de

PHOTOGRAPHS

Front flap: Electronic Publishing Stefan

I D E A   A N D   E D I T O R I A L
Berner GmbH, Oliver Graf Fotostudio GmbH,
Studio Float GmbH
Dr. Andreas Möller (responsible)
P. 02: Verena Müller
Rainer Berghausen
P. 06/07: Getty Images – Corbis Documentary/
Catharina Daum
Neil Emmerson, DigitalVision/Thomas
Susanne Hartlieb
Northcut, Unsplash – Logan Weaver,
Dr. Manuel Thomä
picture alliance – dpa
Melina Wirkner
Cover + P. 08–13: Wolfram Scheible,
GROB-WERKE GmbH & Co. KG
Cover + P. 14–19: Frederik Dulay-Winkler
C O N T A C T Cover + P. 20–25: Kunal Daswani
Cover + P. 26–31: Geoff Johnson
TRUMPF GmbH + Co. KG P. 34/35 + 38: Cira Moro
Johann-Maus-Strasse 2 P. 42: Getty Images – Stone/Howard Kingsnorth
71254 Ditzingen P. 43: Luftbild Brugger GmbH
+49 7156 303-0 P. 44/45: Steve Hall + Merrick Photographers
info@trumpf.com Back flap: Martin Stollberg,
Electronic Publishing Stefan Berner GmbH,
Oliver Graf Fotostudio GmbH, Alexander Zettl
Back cover: Getty Images – Moment/Bento
Fotography, Moment/DuKai photographer,
Moment/Sandro Bisaro, Johns Hopkins University

REPRO

ctrl-s GmbH
www.ctrl-s.de

PRINT

Raff Media Group GmbH

www.raff-mediagroup.de

NOTE
With the exception of the Editorial and the Management
Board and Supervisory Board Reports, only the masculine
form is used predominantly throughout this Annual
Report for the sake of readability, but it should be taken
ID-No. 2094415
to refer to persons of both genders.

I m print
Technological highlights
T E C H N O L O G I C A L H I G H L I G H T S

1 1 / 2 0 1 9 0 5 / 2 0 2 0

D I G I TA L A SS I STA N T H E L P S T R U M P F M OV E S I N T O AU T O M AT E D A RC W E L D I N G
PRODUC TION EM PLOYEES
TRUMPF’s first automated arc welding system is now available. The
The new Workmate software solution displays information to TruArc Weld 1000 is equipped with a cobot, or collaborative robot.
machine operators to facilitate their everyday work, from assistance After the operator has manually fed the cobot a part, it automati-
with setting up machines to recommendations for packaging parts. cally produces the weld much more efficiently than would be pos-
With access to everything that matters, the software saves on search sible manually. With this new system, TRUMPF is responding to the
times and promotes independent and efficient working. increasing lack of specialist workers, while offering businesses an
Workmate also assists with manual jobs such as welding and assem- easy way into automated welding.
bly, for example. Here, the software solution provides in-depth Unlike with conventional industrial robots, the operator can move
Software solution work and health and safety instructions. the cobot over the part by hand. Integrated sensors mean it is easy Tr u A r c W e l d 10 0 0
Workmate to guide.

1 1 / 2 0 1 9
0 5 / 2 0 2 0
NEW 3D PRINTER FOR MEDICAL TECHNOLOGY
LASER TUBE CUTTING FOR BEGINNER
The TruPrint 2000 is particularly well suited to industries with high
quality standards, such as medical technology. The flow of inert A N D A DVA N C E D L E V E L S

gas from the rear and forward through the system is exceptionally The TruLaser Tube 3000 fiber makes sense even at low to medium
uniform. This raises the quality of the printed parts. What’s more, capacity. The machine enables a varied range of tube and profile
the operator can get rid of excess powder on the part while it is machining tasks, and replaces conventional machining operations
still in the machine. The new system uses inert gas to prepare the such as sawing, drilling, and milling.
printing powder. This prevents any contamination from entering The TruLaser Tube 3000 fiber can machine a wide range of parts,
the circulating powder system. This is a significant advantage in including profiles, round tubes, flat steel and – as an option – L and
sensitive industries such as medical technology. Tr u P r i n t 2 0 0 0 U profiles, too. The 2-kW solid-state laser can cut through structural
Tr u L a s e r Tu b e 3 0 0 0 steel, stainless steel, aluminum, and non-ferrous metals such as cop-
fiber per and brass. The machine already boasts a comprehensive set of
cutting data.

1 1 / 2 0 1 9

T R U L A S E R S T A T I O N 7 0 0 0 E F F I C I E N T LY
0 6 / 2 0 2 0
WELDS LARGE ENDOSCOPES

With its laser power of up to 4 kW and 150 % larger installation

space, the TruLaser Station 7000 3D laser welding system ensures WO R L D’S F I R ST LO C A L I Z AT I O N

greater productivity. The machine also has no problem welding STA N DA R D F O R I N D U ST RY

larger components and deeper seams. Productivity is increased by In collaboration with around 60 partners, TRUMPF has introduced
higher feedrates and faster part production. Another new feature a standard for industrial locating technologies. “omlox” allows the
is smart image processing, which automatically corrects the laser integration of all existing technologies, such as UWB, BLE, RFID, 5G
beam if the part is crooked. This improves process reliability and and GPS. The new industry standard enables the tracking of fork-
reduces wastage. The TruLaser Station 7000 is especially suitable lift trucks, drones, driverless transport systems, and tools from var-
Tr u L a s e r S t a t i o n
for complex instruments in medical technology, such as endoscope ious manufacturers via a uniform interface. Location data can there-
7000
production. fore be put to much broader use in the factory.
The involved industrial partners include companies from all over
Europe, Asia and the US. To enable the global further development
of the “omlox” standard, the initiators handed the project over to Localization solution
the PROFIBUS user organization, which has been taking care of var- for production
ious industry standards for over 30 years.