Foreword

STIHL AG Executive Board

Dear Readers,

Behind us lies a difficult and challenging year. Slower growth, inflation, and high energy prices influenced the economic climate and led, in general, to restrained spending among consumers. Meanwhile, global uncertainties – such as the consequences of armed conflict and climate change, which are burdening people and businesses alike – compounded the situation. This environment had an impact on the STIHL Group as well, resulting in a 4.1 percent decline in revenue to 5.3 billion euros in 2023.

Our ability to look to the future with optimism, despite everything, is also due to the dedication of employees throughout the Group, who have earned our heartfelt thanks. They have internalized the mission that has been part of STIHL’s basic principles since its founding in 1926: “Acting for tomorrow.” First formulated in 2021, our sustainability strategy – which we have continued rolling out and anchoring within the STIHL Group, and which has already started to bear fruit – provides a framework for this.

Our confidence and optimism were reflected in 2023, especially at the site of our founding company in Waiblingen. There, we opened the STIHL Brand World, which provides everyone interested with an opportunity to learn about our history, our products, and our mission. We are also making investments in innovative battery technology, with battery-operated products slated to roll off the production line in Waiblingen for the first time in 2024. What is more, we plan to deepen our value chain going forward by manufacturing EC motors – the heart of our battery-operated tools – in-house. And, in terms of our face to the world, we are more diverse than ever: Sarah Gewert joined our Executive Board in early 2023, taking on responsibility for Marketing and Sales. As a result, our six-person Executive Board now has an equal number of men and women.

We have always paid special attention to the environmental sustainability of the business and our products. That commitment inspired the STIHL Group to join the United Nations’ Global Compact in February 2023, which obliges us to comply with social and environmental standards that can only be met through sustainable development. Among our most important achievements is that our international distribution companies’ direct and indirect CO₂ emissions are now fully offset through offsetting projects. Our potential analysis, which started in 2023 and is aimed at increasing the proportion of secondary raw materials, is making progress, as is our feasibility study for a product guided fully by a circular approach. In terms of social aspects, we have strengthened responsibility in our supply chain by performing supplier sustainability audits.

At the same time, we know that sustainability takes tireless dedication. We have only just started our journey and still have miles to go before we achieve all of our goals. We will continue down this path with a sense of purpose and commitment, and look forward to taking you along with us in our third Sustainability Report. Enjoy!