Value-based management and control system

We align our corporate management and control activities to the overall objective of achieving a sustainable increase in shareholder value. To make achievement of our growth targets measurable, we have adopted a modern system of metrics with which we calculate value-added and return ratios in line with capital market practice.

We use economic value added (EVA® )1 to assess growth to date and to appraise future plans. EVA® is a measure of the surplus financial value generated by a company over a certain period. A company creates economic value added if its operating profit exceeds its cost of capital, the latter being defined as the return on capital expected by the capital market. 

Operational business performance is measured based on operating profit (EBIT) before deduction of any goodwillAmount by which the total consideration for a company or a business exceeds the netted sum of the fair values of the individual, identifiable assets and liabilities.
impairmentImpairments of assets are recorded when the recoverable amount is lower than the carrying amount at which the asset is recognized in the statement of financial position. The recoverable amount is calculated as the higher of fair value less costs to sell (net realizable value) and value in use.
losses. The capital employedCapital invested in company assets and operations. Equity + interest-bearing liabilities.
figure is calculated from the asset side of the statement of financial position. A reconciliation of the year-end figures in the statement of financial position and the average values used to determine capital employedCapital invested in company assets and operations. Equity + interest-bearing liabilities.
can be found here.

1
EVA® is a registered trademark of Stern Stewart & Co.