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.
At the beginning of 2019, the Management Board launched VALUE 21, a comprehensive performance and strategy-enhancement program for the entire LEONI 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.
The consistent and disciplined implementation of VALUE 21, which has been underway since then, to sustainably increase profitability and cash flow, creates the prerequisites for the strategic further development of LEONI AG. 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. To this end, we have defined 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.
As part of VALUE 21, the Management Board has decided to place the strategic focus of LEONI AG on the wiring systems business (WSD Division) in the future. As a result, a separation of WCS division is planned. This is to take place in parts. In this respect, its optimal setup and ownership structure is being constantly reviewed so that the WCS units can take full advantage of their opportunities in the market.