Management system
Core key performance indicators
The KION Group’s strategy, which centres on value and growth, is reflected in how the Company is managed. It uses five core key performance indicators (KPIs), which remained unchanged in the reporting year, to continuously monitor market success, profitability, financial strength and liquidity. The performance targets of the Group and the segments are based on selected financial KPIs, as is the performance-based remuneration paid to managers. The KPIs used to manage the segments are order intake, revenue and adjusted EBIT. As a rule, the KPIs are measured and made available to the Executive Board in a comprehensive report each month. This enables the management team to take prompt corrective action in the event of variances compared with target figures. > TABLE 004
Key performance indicators |
004 |
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in € million |
2018 |
2017* |
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|
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Order intake |
8,656.7 |
7,979.1 |
||||
Revenue |
7,995.7 |
7,598.1 |
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Adjusted EBIT** |
789.9 |
777.3 |
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Free cash flow |
519.9 |
474.3 |
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ROCE |
9.3% |
9.3% |
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Profitability-related KPI
Other key performance indicators
Besides the aforementioned core KPIs, the KION Group uses a wealth of additional financial KPIs. The main one is the adjusted EBIT margin, which is besides ROCE a relevant component of remuneration and is also a target in the KION 2027 strategy. There are also non-financial KPIs, which primarily relate to customers, employees, sustainability and technology. Some of them are used operationally as leading indicators for the financial KPIs.