OVERVIEW REPORTS SERVICES RESpONSIBILITy 15 Strong performance in an extraordinary year The industrial B2B sector performed well during 2020 despite the coronavirus pandemic. Our market barometers — the regular surveys E/D/E carries out with its members — indicate different trends in our two largest customer groups: while members described the order situation as stable or better, industrial customers reported that orders were decreasing. These trends are also reflected in E/D/E’s figures. Our trading volume increased by EUR 132 million on the previous year to a total of EUR 6.44 billion. We achieved a trading volume of EUR 1.6 billion abroad, amounting to 25 percent of our overall trading volume. In the warehousing busi- ness, we achieved a new record of EUR 339 million. The consolidated net profit was EUR 15.2 million, which is slightly above the level for the previous year. This in turn will mostly be retained so that the equity increases to EUR 419 million, which is the equivalent of an equity ratio of 57.2 percent, allowing for the internal funding of planned investments to strengthen our medium-sized businesses in the indus- trial B2B sector. Reimbursements to our members are at the same level as in 2019 at EUR 167 million. In light of the overall economic effects of the coronavirus pan- demic, these are welcome developments. Last year, it was not only the diversified distribution of the product segments that proved valuable, but also E/D/E’s international position, as the various develop- ments on the individual European markets balanced each other out. While the trading volume in Germany decreased slightly, we achieved significant growth in the amount of EUR 193 million on the international markets due to an increase in member numbers and the positive development of our strong European partner VGH International. Developments in the Netherlands, Austria, Switzerland and Bel- gium were particularly positive. The effects of the coronavirus pandemic shaped developments over the year. After a strong first quarter and the drop due to the lockdown in spring, the recovery began in earnest in September. In total, eight months exceeded the level for the previous year. Differences could be seen across business types. The trading volume in the area of central payments did not grow as strongly as planned. On the other hand, growth in the warehousing business was slightly higher than forecast. The increasing number of orders in the eLC is proof that our central warehouse func- tionality is of real importance in the context of process efficiency and cost reduction for medium-sized businesses in the industrial B2B sector. The E/D/E central ware- house is strengthening the core business of our members through the advantages it offers, such as more than 100,000 items physically stored in the location. At up to 90 percent, the high proportion of deliveries straight to the end customer has tangibly reduced the burden on our members’ operations. At its peak, the Wuppertal eLC dispatched up to 12,000 packages per day in 2020 — a significant increase on the previous top figures. Development was uneven across product groups. Revenue from industrial custom- ers in the automotive sector, the aerospace sector and the mechanical engineer- ing sector decreased considerably for many E/D/E distributors in 2020. However, one positive aspect here is that E/D/E’s development in all industry-related product groups was above the market level. Construction segments also enjoyed positive growth in 2020, with construction equipment, fastening systems and building com- ponents benefiting in particular. As a result of strong online trade, power tools ex- perienced a significant boost in demand. The craft trades segment was once again operating at full capacity in 2020, and E/D/E’s craft trades sales concepts therefore developed far beyond the previous year’s level. Building services also experienced growth, with a trading volume of EUR 1.5 billion, as did the DIy and gardening technology segments. Increased unit quantities were purchased from E/D/E and ESH in the steel segment, but falling prices meant that the trading volume develop- ment was negative.