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13
CONSOLIDATED MANAGEMENT REPORT 2013
———
3. POST-BALANCE-SHEET-DATE EVENTS
There were no major events after the balance sheet date.
———
4. OUTLOOK, OPPORTUNITIES AND RISK REPORT
4.1 OUTLOOK
THE SITUATION OF THE ELECTRICAL AND ELECTRONICS INDUSTRY IN GERMANY
In light of the temporary escalation of the government debt crisis in the Eurozone, it is remarkable that sales
outside Germany held up better than domestic sales in the year under review. The chances of a stabilization in
demand in the Eurozone increased during 2013. This is partly due to the abating crisis in the Eurozone towards
the end of the year, thanks to measures taken by the European Central Bank and European governments. The
economies of the USA and Asia’s emerging markets have also recently picked up steam. In comparison, the euro’s
moderate recovery since August 2012 has had only a slight cushioning effect. Although the dollar exchange
rate in early 2013 was slightly over $1.30 to the euro, it is important to keep in mind that the electrical and
electronics industry was dealing with an exchange rate of $1.45 to the euro 18 months earlier. The exchange
rate even climbed up to $1.60 in the boom year 2008.
All told, we expect to see a tendency towards recovery in the electrical and electronics industry in 2014. The
lower level of uncertainty over the impact of the Eurozone debt crisis and the increasing global economic
momentum make us cautiously optimistic. Still, incoming orders have been by no means brisk in recent times,
even taking the moderating statistical effects into account. This development is not a surprise, however, in view
of the deep recession in a number of Eurozone countries. The structural changes in the crisis-stricken countries
are not a purely economic phenomenon and are likely to persist. Zentralverband Elektrotechnik- und Elektroni-
kindustrie (ZVEI), Germany’s central association of the electrical and electronics industry, is therefore forecasting
modest growth in production of 1.5 percent for the industry for the current year. We believe this forecast
is realistic.