Download - Salzgitter AG

A Group Management Report and Management Report on Salzgitter AG II. Profitability, Financial Position and Net Assets 148 149
Activities in markets with higher value-added products and expanded sales channels generated an FYE
of € 160 million. We have identified a potential gain of € 78 million from improved production and
administration processes and the optimization of the use of materials and third-party services. In order
to achieve these objectives, certain measures are required, such as investments. We have taken these
investments into account with an annual amount of € 90 million for depreciation, interest payments
and other expenses.
Earnings components in € mil. FYE
Increase in sales + 160
Savings on expenses + 78
Depreciation/interest/investment expenditure – 90
Full Year Effect (FYE) before tax 148
Employees and PIP
The outstanding commitment of all participants is the basis and a decisive factor for the successful
implementation of the PIP. The many good ideas submitted by our employees flow into the PIP via
various management tools, as illustrated by the chart below:
PIP brings together all the calculable effects of the various management tools
5P Management
(balanced scorecard)
Operating
suggestions
scheme
Group-internal
programs
EVP
5P corporate guidelines
(individual projects)
Synergy
management
Stringent criteria are binding and identical for all project proposals, and they must be satisfied before
proposals can be included in the PIP. It is evident that Group employees are very happy to use the
structures and institutions of this program to support continuous profitability improvement with their
own projects. This is another advantage of our decentralized Group structures, as they enable the
company to leverage the knowledge spread across the Group companies with a view to safeguarding
the future competitiveness of Salzgitter AG.
Profitability, Financial
Position & Net Assets