Knorr-Bremse Annual Report 2019

DRIVING RESPONSIBILITY. KNORR-BREMSE ANNUAL REPORT 2019.
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To the Shareholders

We are living in extraordinary times, through a period that poses major challenges not just to our company, but to our society as a whole.

Bernd Eulitz – Chairman of the Executive Board of Knorr-Bremse AG

Letter of the CEO to the shareholders

Our Corporate Strategy

Here at Knorr-Bremse, we aim to shape the future of rail and commercial vehicle transportation by improving safety, reliability and efficiency. At the same time, we seek to add value for our customers, employees and shareholders, as well as society at large. We intend to defend our leading position in multiple markets and continue our profitable long-term growth trajectory. We also intend to devote equal attention to our social and environmental responsibilities, however. By providing sustainable system solutions for mobility, our innovations are making a significant contribution to overcoming social challenges and driving social progress. Every day – around the world.

The Divisions

Rail Vehicle Systems

Incoming orders for the Rail Vehicle Systems division rose by 5.8% year on year from € 3,798.0 million to € 4,016.7 million. Adjusted for disposals made in 2018, the increase amounted to 7.6%. As at December 31, 2019, the order book totaled € 3,573.0 million (2018: € 3,212.4 million). The increase was primarily due to continuing high demand in Asia, especially in the service business. This more than compensated for temporary declines in incoming orders in the Europe/Africa region.

Please find here the Key Figures Rail Vehicle Systems

Commercial Vehicle Systems

The Commercial Vehicle Systems division recorded a -4.9% decline in incoming orders to € 3,050.7 million (2018: € 3,207.8 million) in fiscal 2019. Adjusted for currency and acquisition effects, the decline amounted to -9.1%. The drop in demand for OE business that became evident in the second half of 2019, first in Europe and then in North America, was also reflected in the order book, which fell by -16.8% to € 1,134.2 million as at December 31, 2019 (2018: € 1,363.7 million).

Please find here the Key Figures Commercial Vehicle Systems

Sustainability

Knorr-Bremse’s approach to corporate responsibility is based on the principle of development, and applies not only to our products and how they are manufactured but to our employees, the environment and society as a whole.

Since 2011, we have been informing our stakeholders of activities in our Sustainability Report (until 2018 the UN Global Compact (UNGC) Report). As is required of listed companies, Knorr-Bremse has been producing a report since 2018, which is also reviewed by the auditor. This report sets out in detail the impact the Company has on the environment and society, and presents key indicators as well as the targets and measures Knorr-Bremse uses to manage its sustainability activities.