AN INNOVATIVE, PIONEERING TECHNOLOGY NICHE PLAYER THAT CREATES COMPREHENSIVE BEST-IN-CLASS SOLUTIONS. CREATE ADDED VALUE FOR ALL KEY STAKEHOLDERS WHILE AT THE SAME TIME BEING A SOLID INVESTMENT FOR SHAREHOLDERS.

Innovative

With our core technologies we can respond to these growth trends and can offer innovative comprehensive systems by combining these technologies. Investments in research and development and the roll-out of innovations are important areas of focus for growth. Our target is to generate at least 15% of turnover through innovations introduced in the previous two years. As a result, the portfolio is in the early stages of the product life cycle. We invest predominantly in our own technological development, although we also work closely with other parties on specialisms. We are making a significant contribution to the Sustainable Development Goals (SDGs) through our innovative product portfolio, supporting our customers in achieving their sustainability criteria and simultaneously providing clear direction on how forward-looking our company is in terms of sustainable development. We focus on securing a leading position in niche markets. Within our three business segments we have defined seven vertical growth markets where we expect to achieve growth of between € 300 million and € 500 million in the next three to five years. We aim to generate more than 80% of the turnover in these growth markets.


Financial Performance

Healthy balance sheet ratios and a strong cash flow from operating activities enjoy top priority in the development of the company. We aim to achieve an above-average annual increase in earnings per share, and a net debt/EBITDA ratio of no more than 2.0. We will expand through organic growth and acquisitions. In geographical terms the focus for growth is on Europe, North America and Asia. In the case of acquisitions the emphasis is on structurally healthy companies which are aligned with our core technologies and associated vertical growth markets. We will seek between one and three acquisitions a year, each representing turnover of between € 10 million and € 50 million. In the period ahead the focus will mainly be on organic growth and the optimal integration of (acquired) businesses within the TKH organization. Due to the focus on activities with higher margin potential, the medium-term range for the ROS target exceeds 15%. The range for the medium-term ROCE target is 22-25%.

Facts & figures

1.3
turnover (in € bn)
21.1%
Innovations
60.6
R&D spendings (In € m)
10.5%
ROS