Annual Report 2015

Control system

The technotrans Group’s internal control system has the purpose of overseeing implementation of the corporate strategy. The control system basically comprises regular strategic discussions within the Board of Management and in-year planning discussions – including investment and personnel planning aspects – with the individual managing directors of the companies, as well as a monthly analysis of their respective business performance. The system seeks to identify deviations as early on as possible so that swift action can be taken as appropriate. Over and above this, the individual managing directors monitor and analyse their respective markets and specific competitive environment and report to the Board of Management on material changes to it, and on the opportunities and risks. The Board of Management submits regular reports to the Supervisory Board.

technotrans AG and its group companies are controlled first and foremost on the basis of revenue and earnings ratios (EBIT margin). Corporate planning as a whole is furthermore based on cash flow. Financial control at technotrans is performed using quantified financial goals. These include financial ratios such as the equity ratio, gearing and free cashflow (consists of the cash flow from operating activities less the cash payments for investment in operating activities).

The following table provides an overview of key financial and control indicators for the technotrans Group:

    target figure 2015 2015 2014 2013
Revenue € million 116 -120 122.8 112.4 105.2
Technology € million 76 - 79 81.4 73.8 66.0
  %   66% 66% 63%
Services € million 40 - 41 41.4 38.6 39.2
  %   34% 34% 37%
EBIT € million 7.8 -8.8 9.0 6.8 4.6
  % 6.8% - 7.3% 7.3% 6.1% 4.4%
Technology € million   2.1 0.4 -1.8
  % positive margin 2.6% 0.6% -2.8%
Services € million   6.9 6.4 6.4
  % stabile margin 16.5% 16.6% 16.5%
Free Cashflow € million > 5 8.5 4.8 -3.4

The technotrans Group achieved its goals as a whole for the 2015 financial year. Compared with the original forecast, we even achieved much better results for certain financial indicators. The minimum goal for 2015 to achieve revenue growth of more than 3 percent for the group was exceeded, with growth up 9.3 percent thanks to a positive business performance in all sub-markets. With EBIT of € 9.0 and an EBIT margin of 7.3 percent, the earnings forecast was moreover achieved at the upper end of the range expected.