In order to bring growth and profitability to an even higher level, a strategic transformation program was introduced in June 2019, under the name ‘Simplify & Accelerate’. The program aims at simplifying the organization and making better use of economies of scale. Ultimate goal of the strategy program is an acceleration of organic growth linked with better profitable activities with a higher growth potential.

Simplification of the business structure is achieved by implementing an active divestment program, aimed at activities with a lower profit potential. The divestment program comprises a total turnover of € 300 - € 350 million.

By integrating companies with a strong cohesion in activities and product portfolio, not only efficiency will be achieved in the field of R&D, commerce, finance and overhead. Ultimately, this simplification will lead to a simplified business structure with clear focus areas where acceleration of TKH’s performances is possible. It brings the desired focus to the realization of further value creation. It will lead to an even better bundling of knowledge in product development and will lead to efficiency and economies of scale. This not only benefits our financial results but also provides competitive advantage.

The implementation of this strategy program will have a positive effect on both the return on sales (ROS) and the return on capital employed (ROCE). The medium-term objectives have therefore been increased, for the ROS from 12-13% to at least 15%. The target for the ROCE has been raised from 21-23% to 22-25%.

Strategic roadmap