Targets for value-based management

Based on long-term interest rates derived from the capital market and the target capital structure (fair value of equity to debt = 2:1), the minimum required rate of return on invested capital defined for the Automotive Division remains unchanged at 9%.

In spite of the change in the accounting for leases (IFRS 16), which entered into force in January 2019 and increased invested capital in fiscal year 2019, as well as other adverse effects of the special items on earnings, we exceeded both the prior-year figure and our minimum rate of return on invested capital in the reporting period with a return on investment (ROI) of 11.2 (11.0)% (see also chapter “RoI and value contribution”). Invested capital will continue to increase further in 2020 as a result of investments in new models, in the development of alternative drives and modular toolkits and in future technologies. The return on investment (ROI) in the Automotive Division will probably exceed our minimum required rate of return on invested capital and be slightly higher than in the previous year.