We understand value-based management as meaning that the company's objectives have to focus on increasing the value of the company in the long term. The MVV Energie Group identifies suitable strategies for increasing its value on a sustainable basis and makes use of a key figure system to objectify the issues involved and to be able to reach decisions on an economically wellgrounded basis of information. We thus assess all entrepreneurial decisions and measures in terms of their impact on our earnings, both in the short and in the long term. We have set ourselves the goal of achieving sustainable profitable growth. In order to reach this goal, we are improving our cost structures and making more economical use of our capital.
Key figures are particularly well suited for comparative analysis, given that they provide a summarised portrayal of issues and developments capable of depiction in figures by combining various kinds of data. These measurements can be defined both as ratios and as absolute figures.
The MVV Energie Group has used the “value spread” relative performance figure, which acts a gauge of the company's profitability, in its budgeting and target-setting processes for four years now. The advantage of the value spread is that it visibly depicts the relationship between return on investment, costs of capital and the increase in the company's value.
We have consistently oriented our business activities towards this key figure over the past years and have consequently discontinued those activities not fulfilling the requirement of generating a positive value spread in the medium term.
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