Value-Based Management — Part of a Targets System

Long-term, sustainable increases in shareholder value is a declared objective at MVV Energie AG. For this purpose, value-based corporate management will now serve as an instrument for planning, evaluation and control of MVV Energie AG’s entrepreneurial activities. It will make an important contribution to sustainable, value-oriented, operative implementation of MVV Energie AG’s strategic decisions. MVV Energie AG’s value-based management concept is not, however, a substitute for a control instrument, but will instead expand the information base for making decisions. Shareholder value will be tightly bound up in MVV Energie AG’s plexus of objectives.

In order to increase shareholder value, it will not be sufficient to maximise earnings and dividends. A true rise in economic value will first come about when generated earnings are higher than the weighted average cost of capital (WACC), which must be used to finance the capital to be invested by a given company.