Our corporate strategy focuses on the optimum exploitation of opportunities from our dynamic economical and technological environment, as well as the global megatrends and aims to develop LEONI into a leading provider of intelligent energy and data management system solutions.
The Group and its two divisions consequently share the vision of ‘passion for intelligent energy and data solutions’ as basis of this strategy. ‘Passion’ stands for full commitment and fervour with respect to the upcoming tasks. ‘Intelligent’ expresses that LEONI’s products offer the customer added value thanks to additional, smart properties. ‘Energy and data’ are the two areas in which LEONI operates with great expertise - the transmission of energy and data. And ‘solutions’ highlight the trend of increasingly supporting our customers as a solutions and systems provider.
In the fourth quarter of 2018, LEONI announced a comprehensive performance and strategy-enhancement programme called VALUE 21 for its entire group. The objective is to improve the basis for healthy growth, profitability and cash generation as well as to sharpen our focus on the future markets of electromobility, autonomous driving and digitalization. Vertical integration towards being a more comprehensive systems provider will give both divisions good prospects for growth.
Rigorous implementation of VALUE 21, which aims to lastingly boost profitability and cash flow, constitutes the precondition for this strategic development. Given the differing structures and market orientation of the two divisions, the measures to boost performance will be specifically tailored to the divisions.
The objective of the Wiring Systems Division is, with its tailor-made wiring systems and cable harnesses in the automotive sector, to increasingly position itself as provider of vehicle data and energy management solutions with great understanding of a vehicle's overall system. Forming the basis for this is our CARES innovation strategy, which defines the five key areas of innovation for intelligent energy and data solutions in tomorrow’s cars: connected mobility, autonomous mobility, revolutionizing productivity, electrified mobility as well as intelligent solutions & services. We are furthermore enhancing our expertise in the fields of electronics and software. And we are also forging ahead with digitalization of our processes.
In the case of the Wiring Systems Division, specifying the strategy by means of VALUE 21 provides, in particular, that market opportunities are given even greater priority in future and that the choice of new projects is based even more on earnings quality and cash flow. The initial aim with such focused growth is to improve cash flow and the EBIT margin, as well as to establish the conditions for further development towards being a systems provider.
The Wire & Cable Solutions Division’s strategy is, in the automotive market segment, to bolster its leading position in standard and special automotive cables as well as charging cables for electric cars and to decisively enhance as well as upgrade this with new digitalization and solution offerings. The focus is on stepped-up, joint development work with customers, the use of innovative technologies as well as intelligent cable solutions with integrated sensors, electronics and software for such future technologies as electromobility. Here we are focusing, among other things, on cable solutions for charging infrastructure, high-voltage systems and battery connections.
In the industrial market segment, the strategy is aimed at becoming a leading provider of solutions for the energy and data megatrends by way of digital, functional simulation, system integration and creating learning systems.
We are investing in corresponding expertise and technologies, are gradually expanding our range of products and services in the direction of intelligent solutions and establish new business models with our customers. Further objectives include a sharper focus on growth markets as well as better use of our global footprint to address OEM customers that operate worldwide. We also want to continuously improve our operational excellence.
In the context of VALUE 21, we are planning in particular to focus the WCS Division clearly on strategic core markets. The objective is to expand the more profitable business and, with the released resources, to facilitate further development towards being a systems provider.