Strategy & Integrity

1. Strategy and Integrity

1.1 Our Profile

Key Economic Figures

Key Economic Figures

GRI

in € million

FY 2015/16

FY 2014/15

FY 2013/14

G4-9; G4-EC1

Revenues

4 252

4 302

4 168

Operating result before non-recurring items

275

270

235

Income before taxes

140

-23

54

Excluding the discontinued Group Division Voith Industrial Services; previous year’s value adjusted

Direct Economic Value Generated and Distributed

GRI in € million  FY 2015/16  FY 2014/15 FY 2013/14
G4-9; G4-EC1

Direct economic value generated (= revenues) 4 252 4 302 4 168
Economic value distributed
Operating costs 2 863 2 840 2 537
Employee wages and benefits 1 401 1 434 1 424
Payments to providers of capital 89 73 106
Payments to government 51 48 59
Community investments n.d. n.d. n.d.
Economic value retained 29 -93 41


Expenditures for Employees

GRI in € million  FY 2015/16  FY 2014/15  FY 2013/14
G4-EC1 Wages and salaries 1 155 1 188 1 170
Social security contributions, retirement pensions, and assistance 247 246

254


Business Area Portraits

GRI in € million  FY 2015/16  FY 2014/15  FY 2013/14

G4-4; G4-EC1

Revenues

Voith Hydro 1 388 1 313 1 313
Voith Turbo 1 397 1 470 1 409
Voith Paper

1 456

1 506

1 430

Voith Digital Solutions*

-

-

-

Profit from operations
Voith Hydro

105

101

101

Voith Turbo

144

91

111

Voith Paper

76

58

9

Voith Digital Solutions*

-

-

-

*Under development. Not yet an independent segment

Taxes Paid by Region

GRI in € thousand  FY 2015/16  FY 2014/15  FY 2013/14
G4-EC1
Germany 34 561 40 478 29 892
Europe excluding Germany 10 108 12 904 18 695
Americas

17 302

21 766

15 190

Asia

17 337

16 457

18 035

Other

1 417

1 774

2 696

Total

80 725

93 379

84 508

International Focus

Locations by Regional Distribution

GRI
G4-6 Locations overview 

Sales Markets

GRI in %  FY 2015/16  FY 2014/15  FY 2013/14
G4-8
Germany 12 11 11
Europe excluding Germany 28 27 29
Americas

27

29

31

Asia

27

28

25

Other

6

5

4


Financial Contributions

Financial Assistance Received from Government

GRI
G4-EC4 Not recorded

1.2 Strategy & Organization

HSE Data Recording

GRI
We use our reporting tools to record information on health, safety, and the environment, as well as to verify key performance indicators (KPIs) and monitor our goals on acting sustainably. To help us achieve this, we are guided by the international standards ISO 14001 and OHSAS 18001. In 2003 we set out binding Group-wide environmental standards that apply to all value-adding process levels.). These form part of our Health, Safety, and Environment (HSE) Group Directive.

EBM Data Recording

GRI
We review our progress towards achieving all of our EBM (Ecological Business Management) measures through our integrated process of monitoring of measures and KPIs, something our Corporate Board of Management is also involved in as part of our quarterly reporting.

Certifications

Existing Voith Location Certifications

GRI Number  FY 2015/16  FY 2014/15  FY 2013/14





ISO 14001 58 58 58
ISO 9001 69 68 70
OHSAS 18001

60

60

60

Degree of Coverage based on Employees (in %)
ISO 14001 70.0 70.0

72.8

ISO 9001 75.6 74.4 82.3
OHSAS 18001 71.4 71.1 76.5


Association Memberships

GRI
G4-16

German Engineering Federation (VDMA) membership: Specialist area of hydropower and paper technology

Voith association activities by substantial membership contributions:

• VDMA – Verband Deutscher Maschinen- und Anlagenbauer e.V. (German Engineering Federation)
• SWM – Südwestmetall Verband der Metall- und Elektroindustrie Baden-Württemberg e. V. (The Baden-Wuerttemberg Employers’ Association of the Metal and Electrical Industries)
• FVA – Forschungsvereinigung Antriebstechnik e.V. (Research Association for Power Transmission Engineering)
• Förderkreis der Deutschen Industrie e.V. (Society for the Advancement of German Industry)
• DIN – Deutsches Institut für Normung e.V. (German Standards Institute)
• MAI Carbon Cluster Management GmbH
• IHA – International Hydropower Association
• VDB – Verband der Bahnindustrie in Deutschland e.V. (German Railway Industry Association)
• Paper Machine Clothing Association
• UNIFE – Union des Industries Ferroviaires Européennes (Union of the European Railway Industries)

Dialog with policy makers:

Since February 2014 Dr. Lienhard has held the position of Chairman of the Asia-Pacific Committee of German Business.

1.3 Values and Compliance

External Charters and Principles

GRI
G4-15

The Voith Group’s Code of Conduct sets out clear standards, which are aligned with established external charters and principles.


Compliance Training

Compliance Training

G4-SO4; G4-HR2 Number of employees who underwent further training Modus  FY 2015/16  FY 2014/15  FY 2013/14
Management from the upper four levels, new managers
at the Voith Academy, Sales, Sourcing
1 day 241 391 580
Decentralized training by compliance officer 1.5 hours 904 857 1 043
Instruction by supervisor 0.5 hours 2 710 1 457 1 165
Compliance officers 2 days 30 28 27
Number of training sessions
Management from the upper four levels, new managers
at the Voith Academy, Sales, Sourcing
1 day 12 20 34
Decentralized training by compliance officer 1.5 hours not recorded not recorded not recorded
Compliance officers 2 days 2 2 2
in %
Employees trained in compliance - 100 100 100
Managers trained in compliance - 100 100 100

 

External Security Personnel

GRI
G4-HR7

For cost reasons, Voith appoints external safety personnel at the majority of its locations and construction sites. Voith does not train these external safety personnel on the Voith Code of Conduct.


Violations of Compliance Regulations

Compliance Helpdesk

GRI Number  FY 2015/16  FY 2014/15  FY 2013/14
G4-EN29; G4-EN34; G4-LA16; G4-SO7; G4-SO8, G4-HR12; G4-SO11; G4-PR2; G4-PR9 Reports via the Compliance Helpdesk (no complaints regarding suppliers) 0 0 0
of which reported violations against environmental standards 0 0 0
of which reported violations against social standards

0

0

0

The Voith Code of Conduct is an integral part of our compliance training

 

Escalation Paths

GRI
G4-57; G4-58
  •  Compliance Officer
  •  GD Compliance Officer
  •  Compliance Committee
  •  Corporate Board of Management
  •  Supervisory Board

1.4 Responsibility for Society

Donations and Sponsorships

Donations and Sponsorships

GRI in € million  FY 2015/16  FY 2014/15  FY 2013/14
G4-EC1 Voith Group 1.99 2.80 1.84
of which donations

0.80

0.87 0.51
of which sponsorships

1.19

1.93

1.33

Fundação Voith* 0.06 0.01 0.03
Total 1.99 2.80

1.84

Hanns Voith Foundation** 1.64 0.43 0.48

*Included in consolidated expenses
**Fiscal year is the calendar year

Sponsorship Aid by Project

GRI in %  FY 2015/16  FY 2014/15  FY 2013/14
G4-EC1 Education 29.1 26.4 21.0
Social affairs

7.7

4.9 8.0
Sport 56.6 64.9

62.6

Culture 7.0 3.8 8.4
in € million

Total 1.99 2.80 1.84

Sponsorship Aid by Region

GRI in %  FY 2015/16  FY 2014/15  FY 2013/14
G4-EC1 Germany 86.1 91.2 86.2
Europe excluding Germany

1.7

2.0 3.5
Americas 6.6 3.2

6.7

Asia 4.3 2.2 2.4
Other

1.3

1.3

1.2

in € million

Total 1.99 2.80 1.84

Contributions to Political Actors

Contributions to Political Actors

GRI in € thousand  FY 2015/16  FY 2014/15  FY 2013/14
G4-SO6 Germany 80 0 0
Europe excluding Germany

0

0 0
Americas 0 0

0

Asia 0 0 0
Other

0

0

0

Total 80 0 0

Special Vocational College Hanns Voith

GRI

The aim of the institution is to support special-needs youngsters in their development, to encourage them personally, and thus open up opportunities for training placements or work. The model is a success story: Over 90 percent of students are taken on after one year of vocational preparation, with over 80 percent of them going into a training scheme.

business@school Training Initiative

GRI

In the 2015/16 fiscal year 16 Voith employees volunteered their services once again to support the initiative, providing the necessary practical link through their knowledge and experience. They supervised around 50 students in six groups at three Heidenheim high schools.

University Engagement and Foundation Professorships

GRI

At university level, we support young talents at the universities of Aalen, Dresden, Stuttgart, and Ulm as part of the German Deutschlandstipendien scholarship scheme. In the reporting year we invested €23,400 in this area. Additionally, we provide endowments for professorships at several German universities. By doing so, we aim to contribute – without influencing the research content or teaching practices – to the training of new academic talent and promote research in scientific areas relevant to Voith. Our long-standing cooperation with schools and universities has also proven its worth in Europe, the US, India, China, and Brazil. Our assistance in this area includes support for the Formare project of Fundação Iochpe, the Educational Freedom project of Recreatur Resgatur, and collaboration with Escola Estadual Conjunto Habitacional Voith and Friedrich von Voith School in São Paulo, Brazil.

International Education Projects

GRI

Our long-standing cooperation with schools and universities has also proven its worth in Europe, the US, India, China, and Brazil. Our assistance in this area includes support for the Formare project of Fundação Iochpe, the Educational Freedom project of Recreatur Resgatur, and collaboration with Escola Estadual Conjunto Habitacional Voith and Friedrich von Voith School in São Paulo, Brazil.

International Social Projects

GRI

In India we supported a number of social projects in the reporting period. These included Bharat Sevashram Sangha, Prime Minister’s National Relief Fund, and Pranab Kanya Sangha (€13,500 each), Prayas Social Welfare Society and Shirdi Sai Baba Temple Society (€6,750 each).

Engagement in Nepal

GRI

Inspired by the initiative of one of our employees and his wife, who have now supported the project for six years, numerous Voith colleagues are now actively engaged in the project – from the Heidenheim Voith training workshop, Voith apprentices, through Gastro Voith, Voith Turbo Crailsheim, to the Hanns Voith Foundation. A training workshop with a new school building is currently being built as part of the project. The foundation stone was laid at the end of October 2016 together with Nepal’s Minister for Industry, Nabindra raj Jooshi, and German ambassador Mathias Meyer.