Targets

Financial targets

In implementing “newtk”, we aim to ensure that all our businesses are among the best in their respective sectors in terms of performance and accordingly generate positive earnings and cash flow contributions for thyssenkrupp.

Our goal is for thyssenkrupp to sustainably generate positive free cash flow before M & A and create value.

Against the background of the current uncertain economic environment and the resulting limited visibility, in particular with regard to price and volume effects at our cyclical businesses, as well as the costs of restructurings, the underlying programs for which we are currently developing and the extent of which in individual fiscal years will also depend on the speed at which they can be implemented, we cannot yet reliably determine the values and timing for achieving these goals.

In addition, possible forthcoming portfolio changes under the “flexible portfolio” initiative may also have an impact on the Group’s key financial figures.

Sustainability and indirect financial targets

Sustainability is a core component of our corporate strategy. Strategic sustainability management is coordinated by the corporate function Technology, Innovation & Sustainability. Together with other corporate functions and the business areas it continuously identifies the requirements of our stakeholders and develops corresponding targets and measures to improve our performance. Sustainability activities in the Group are managed by the Sustainability Committee. It consists of the Group Executive Board, the CEOs of the business areas, and heads of various corporate functions, and decides on measures and on our Indirect Financial Targets (IFTs). Implementation is the responsibility of the corporate functions and business areas, who report regularly on progress.

Indirect financial targets to secure continuous improvement

The Sustainability Committee has set Indirect Financial Targets in the areas technology and innovations, environment, climate, energy, purchasing and people. Progress towards these targets is factored into variable compensation for the Group Executive Board and business area boards via the sustainability multiplier (more information can be found in the compensation report). In the reporting year almost all Indirect Financial Targets were achieved or are on track to being met.

Overview of indirect financial targets

Sept. 30, 2018Sept. 30, 2019 ChangeSection
Annual energy efficiency gains of 125 GWh in 2016 / 2017
and 150 GWh in 2018 / 2019
GWh253325 -Climate, energy, environment
100% of relevant activities covered by ISO 50001
energy management system by 2019 / 2020
%83100 +17 % pointsClimate, energy, environment
100% of relevant activities covered by ISO 14001
environmental management system by 2019 / 2020
%9194 +3 % pointsClimate, energy, environment
Sustainable adjusted R&D intensity of around 2.5%%2.52.5 -Technology and innovation
15% share of women in leadership positions
by 2019 / 2020
%1212.6 +0.6 % pointsEmployees
2.0 accidents per million hours worked by 2020 / 2021
and improvement of at least 10% a year
Accidents per million hours worked3.02.6 -13%Employees
100 supplier sustainability audits each year#173143 -30Purchasing

Overview of indirect financial targets

Sept. 30, 2018Sept. 30, 2019 ChangeSection
Annual energy efficiency gains of 125 GWh in 2016 / 2017
and 150 GWh in 2018 / 2019
GWh253325 -Climate, energy, environment
100% of relevant activities covered by ISO 50001
energy management system by 2019 / 2020
%83100 +17 % pointsClimate, energy, environment
100% of relevant activities covered by ISO 14001
environmental management system by 2019 / 2020
%9194 +3 % pointsClimate, energy, environment
Sustainable adjusted R&D intensity of around 2.5%%2.52.5 -Technology and innovation
15% share of women in leadership positions
by 2019 / 2020
%1212.6 +0.6 % pointsEmployees
2.0 accidents per million hours worked by 2020 / 2021
and improvement of at least 10% a year
Accidents per million hours worked3.02.6 -13%Employees
100 supplier sustainability audits each year#173143 -30Purchasing

A new energy efficiency target has been adopted: in fiscal year 2019/2020 energy efficiency gains of 150 GWh are to be achieved.

Source: Annual Report 2018/2019, p. 50-51