13.01.2015 Press conference January

During the annual press conference preceding the 2015 International Toy Fair, held from January 28 through February 2 in Nuremberg, Germany, PIKO management reported on sales trends for the prior year and introduced members of the press to the comprehensive range of new items for the year 2015.

1.   Sales Trends in 2014

PIKO owner Dr. René F. Wilfer was happy to inform the members of the press that PIKO closed the year 2014 slightly ahead of the prior year with a 2% increase in sales volume.

Now in its 22nd year, PIKO successfully continued on its positive trajectory. It strengthened its position as continental Europe's third largest model train manufacturer.

Germany is PIKO's largest market with a 70% share of total sales volume. In Germany sales volume grew by 3% and hit the planned target exactly. The German retail sector was especially successful with a more than 6% year-over-year increase in sales volume. As a result PIKO achieved an average 10% year-over-year increase in retail sales in Germany throughout the last eight years. German retailers are the biggest and most important sales channel for model trains.

Over the years PIKO has become a strong and reliable partner for the retailers. This was rewarded by an increased presence of PIKO model trains in stores and successful sales.

The export sales volume in 2014 reached prior year's levels and was slightly below plan. Business in the U.S. and China (with dedicated sales organizations in San Diego in the U.S. and DongGuan in China) was very successful. Sales volume in Poland, Austria, Switzerland and Czech Republic also exceeded prior year's numbers. Sales in France and Russia, however, were significantly weaker. The reduced sales volume in Russia can be largely attributed to the difficult economic situation in the country and the decline of the Ruble, which dropped 50% compared to the EURO.

As a result of this, export sales volume in 2014 did not quite reach the planned target. Overall sales volume is also slightly below target.

In order to jumpstart export volume PIKO decided to cover sales in Austria with a dedicated team in Sonneberg. Furthermore PIKO managed to secure a new, renowned importer with T2M in Faulquemont, France. They will cover France, Belgium and Luxemburg. Going forward this should lead to a significant increase in sales volume in both countries.

We are pleased the PIKO Group with its 520 employees managed to generate a small profit in 2014. As a result we are in an excellent position to tackle challenges and to actively shape the model train market in the years ahead.

Two important building blocks for positive development are the excellent product availability for the retailers and the timely delivery of all announced new items. Besides the manufacturing facility in Sonneberg, where PIKO produces the complete garden railroad line, it was mainly the factory in Chashan in southern China with its 350 workers that made these advantages possible.

PIKO is especially proud to again have delivered every new item that was announced for 2014, 300 in total, on time and with excellent quality. Doing so is by no means typical in the model train industry. It creates a unique selling point that is greatly rewarded by customers and retailers alike.

2.   New items and goals for 2015

Again, PIKO starts the year 2015 with a very attractive and comprehensive set of new items, including more than 300 new products across the four scales G, H0, TT and N.

The complete list of new items was published on the PIKO home page http://www.piko.de at the beginning of the year and in the 2015 catalogs that are already available at our retailers. PIKO owner René F. Wilfer introduced the attending journalists to selected new items with new molds.

For the garden railroad, PIKO's largest scale, the new steam locomotive BR 24 certainly constitutes the highlight for G-scale fans. The impressive steam locomotive reproduces the original down to the last detail and has many separately attached parts. It is equipped with a switchable steam generator and a prototypical opening smoke box door. The stainless steel wheel rims guarantee reliable power pickup, and the rims in conjunction with the Bühler motor ensure excellent running characteristics.

The V20 diesel locomotive is another new mold in this scale. The little sister of the V36, a new item in 2014, is a versatile locomotive that can be used as a switcher or in front of short passenger or freight trains. Both axles of the model are driven, and the jackshaft with its counter weight is eye-catching. Like all other PIKO G-Scale locomotives the V20 can be fitted with a digital train control decoder and a sound module.

The Wittenberg cab control car is another highlight. Made from entirely new molds, it is the ideal addition to the commuter cars already available from PIKO. It is at the top of many garden railroad enthusiasts' wish lists.

The high-sided gondola and the work caboose are two freight cars, made from new molds, that will be released this year in the American market.

PIKO presents firework of new items in H0 scale, the segment with the largest share of sales in the PIKO portfolio. The main focus here is the PIKO Expert line, where a multitude of new molds will hit the market.

First we should mention two electric locomotives, the BR103 and BR150. Due to their long period of operation and their ubiquity they can be called real classics of the DB. PIKO consequently follows the chosen path of reissuing classic locomotives and thereby offering model train enthusiasts interesting state-of-the-art models with the proven, good PIKO price-performance ratio.

Friends of the Deutsche Reichsbahn can look forward to the small diesel switcher V23/BR101 and the BR 118 diesel locomotive variant with glass-fiber reinforced cab based on new molds. The latter will be released in two different paint schemes.

The Vectron is Siemen's most recent locomotive design. Following PIKO's electric version that delighted friends of modern railroading last year, we will release the diesel version this year.

The export market will again receive an interesting and attractive set of new items as well. Among other things there are new molds for the Polish electric locomotive ET41 and the Belgian diesel switcher BR73.

With the PIKO SmartControl System, the model train manufacturer from Sonneberg introduces a completely new and innovative digital control system. It is the first to combine the advantages of smart phone technology with the specific requirements of the model train operator. The PIKO SmartControl System is the perfect choice for model train enthusiasts looking for a comfortable state-of-the-art digital train control system.

Three different PIKO SmartControl Premium Train Sets make the start to digital model railroading not only attractive but also extremely simple. The PIKO SmartBox and the PIKO SmartController communicate via wireless networks. Both devices support auto-discovery. There is no configuration, download or even additional purchase needed: All parts that are required for the start are included in the sets. This includes a power supply, and the locomotives are even equipped with a LocSound decoder. This is a new generation of digital train control. Brilliantly simple – simply brilliant.

Alongside H0 and G-scale, where PIKO offers a complete line of model railroad equipment, the other two scales in the PIKO portfolio, TT and N, will receive interesting new molds in 2015 as well.

Friends of TT-scale can look forward to two new molds for the diesel locomotives BR106/V60 and BR119. Matching freight cars, in the form of the cement hopper cars Ucs-v, will be released as well.

With the railcar VT798 PIKO will introduce a real classic in N-Scale. The railcar, that is also known as "Savior of the branch line" will be delivered as a 2-car unit. Just like it's prototype, it has a well laid out, reliable and low-maintenance design. The micro-motor ensures both spotless running characteristics and an unobstructed view through the passenger compartment. The power and control cars are connected via electric couplers with close coupling kinematics. The interior lighting comes standard and can be controlled independently.

Additional variants of the Swiss historic locomotive Ae 3/6, as well as the Dutch EMU Hondekop based on modified molds, will contribute to the continued positive development of PIKO's smallest scale internationally.

The already markedly positive reaction to the new items for 2015 from retailers and customers alike as well as the good positioning of the brand in retail make PIKO management optimistic that the goal of 5.3% growth in 2015 can be achieved.

All in all PIKO is well positioned for the International Toy Fair in Nuremberg that will open in a few days. The PIKO sales team is looking forward to interesting discussions and excellent sales.

3.   PIKO Open Day on June 20, 2015

The 10th PIKO Open Day will be an important event for PIKO fans this year. On June 20 PIKO will celebrate model trains with many thousands of visitors at PIKO headquarters in Sonneberg-Oberlind.

Traditionally visitors will have the opportunity to experience up close how PIKO model trains are made.

In addition to Thuringia specialties – for body and soul – PIKO offers our little guests hands-on model railroading fun with a large garden railroad playground. Grown-up model train enthusiasts can look forward to special models and many more exhibits related to the topic of PIKO model trains as well. For the first time, visitors will be able to have a car printed with a picture they chose making it possible to take home a personalized memento of this day.

Visitors can opt to end the day with a visit to a concert at Sonneberg's City Park.

PIKO is looking forward to again welcoming many PIKO fans in Sonneberg on June 20.

Sonneberg, January 13 2015

Dr. René F. Wilfer


Photo by: Stefan Kühnlein

Dr. René F. Wilfer presents the brand new model of the garden railway steam locomotive BR 24 during the press conferece.