E/D/E ANNUAL REPORT 2019 The expansion of digital services for member companies was a further focal area in 2019. A new feature is the E/D/E Clearing Center, through which delivery and order processes can be rendered quicker and more efficiently. Dealers and suppliers alike benefit from the ability to send and receive order confirmations and shipping notifications by electronic means. Multishop enables E/D/E to pro- vide its members with online shops that can be configured to cater to spe- cific industries. In 2019 we launched a significantly improved Multishop version developed on the basis of more than 180 specifications. This new version provides our members with a more targeted means of ad- vancing their e-commerce strategies. 2019 also saw us facilitate numer- ous connections to the construction trade software of leading providers, which in turn enables distributors to increase customer loyalty and cus- tomer-service efficiency. E/D/E has thus further developed its Multishop as a competitive e-com- merce platform, which will become a central supply system as a result of numerous possibilities for networking with crafts and trades and industry. industrial services, In the field of E/D/E implemented more than 200 projects together with distributors, increasing the number of installations in the last three years to around 500. It also created the conditions for mem- ber companies to handle complemen- tary ranges via E/D/E systems in 2020, and to thus create their own digital ecosystem. E/D/E last year succeed- ed in acquiring new full-supply part- ners for this purpose and in expanding its range to include electrical, office, electronic and packaging products. Toolineo online marketplace The performed very well, recording a sales increase of over 60 percent. The product range was doubled in size to comprise over 400,000 items. The marketplace reported numerous highest figures in revenue and user numbers in the fourth quarter. ETRIS BANK expanded its range of services to include the new service of factoring at the end of 2019/start of 2020. Members who use this tool val- ue the immediate liquidity, 100 per- cent default protection, the easing of credit lines with their main banks and the equity ratio improvement. PVH FUTURE LAB, now an inde- pendent GmbH (limited liability com- pany), made significant progress in 2019, implementing agile work pro- cesses to bring three innovations to the market within an exceeding- ly short period of time. The first of these was Rapid3D, a product for the industrial 3D printing in metals and plastics. This was followed by sellflixx Recommendations, the first app for AI-supported product recommen- dation marketing, and by workflixx Catch Talents, a tool that effectively digitalises recruitment processes. E/D/E Stiftung con- E/D/E and the tinue to see vocational training as key to strengthening PVH as a me- dium-sized enterprise. In addition to offering formal vocational training programmes and integrated degrees of a business nature, E/D/E is increas- ingly offering vocational training in more innovative areas, as reflected in its vocational training programme to qualify as an e-commerce specialist. In 2019, E/D/E was distinguished as “Ausbilder des Jahres” (vocational training provider of the year). More- over, two of its trainees achieved the grade “very good” on completing their training programme. The economic environment The German economy grew for the tenth year in a row in 2019, albe- it less dynamically than in previous years. According to the calculations of the German Federal Statistical Office, the gross domestic product (adjusted for price changes) record- ed for the past year was 0.6 per- cent above the figure for the previ- ous year. GDP grew by 1.5 percent in 2018 and by 2.5 percent in 2017. The eurozone’s economic growth also weakened, falling from 1.8 percent in 2018 to 1.2 percent in the year un- der review. According to the Federal Statistical Office, domestic growth in 2019 derived mainly from consump- tion and gross capital formation. Investments in buildings, for example, were 3.8 percent higher (adjusted for price changes) than in the previous year. This increase was especially pro- nounced in the civil engineering and residential construction segments. Large parts of the industrial sector, in contrast, suffered sharp declines, 16