Our strategic house represents our strategic intent. On top, we aspire to continuously grow revenue and profitability in a sustainable way, with a lean and focused organisation. Linked to this are our medium-term strategic objectives, of a ROI of at least 20% and an EBITDA margin of more than 15% by 2023.
The house is supported by three robust growth pillars: Automotive, Industrial Brakes and Industrial Actuators and Controls. In China we are active in all three domains and pursue the same intent: growth in automotive, industrial brakes and revenue in actuators and controls.
The house and its pillars rest on the its foundation: our people, our culture of cooperation. We strive to provide a top-quality work environment to our employees.
The automotive industry is being fundamentally disrupted by four mutually reinforcing developments: Autonomous driving, Connected vehicles, Electrification of the powertrain and Shared mobility, known by ‘ACES’. This transformation provides significant growth opportunities.
With our smart actuation technology, we are well positioned to benefit from these trends. We expect that the ACES will increase the actuator content per car and drive above-average growth.
Our five ‘Lighthouse’ product platforms are specifically targeted to enable future mobility. These include systems and components for active damping, AVAS sound system for electric vehicles, sensor cleaning, battery cooling and clutches for hybrid offhighway vehicles.
Besides the Lighthouse platforms, our valve and actuator technology helps create cleaner and more efficient internal combustion engines and a safer and more comfortable driving experience.
The ongoing automation of global industrial manufacturing processes and the further uptake of industrial robots across industries, together with the proliferation of collaborative robots and medical robots, provide us with a significant opportunity to increase our revenue in industrial brakes.
We invest human and capital resources to optimise production, increase capacity and further enhance our product portfolio. A newly introduced slim brake line has been developed specifically for collaborative robots, and has generated widespread interest from established and new robotics companies. We have also invested in localising the production of industrial brakes in its Chinese facility in Suzhou, which directly serves the Chinese market.
The acquisition of INTORQ completed on 8 January 2020, significantly enhances our market position in industrial brakes. We are now a full line provider of electromagnetic brakes, spring-applied brakes and clutches for industrial applications.
The third pillar, Industrial Actuators and Controls (IAC), is the combination of our recently merged Industrial Controls Systems (ICS) and Industrial Magnetic Systems (IMS) business units.
The focus of IAC is on profitability and cash generation. The former business units operated in similar markets with similar customers and products. The combination of the business units improves operational efficiencies and offers our customers a more complete, unique portfolio.
IAC focuses on industrial automation and the development and production of customised electromagnetic actuator technology, gas and fluid control valves and systems and control technology.
IAC operates in segments such as energy distribution, fluid controls, medical technology and transportation applications.
In China we are active in all three above-mentioned domains, with the same intent: growth in automotive, industrial brakes and cash generation.
We have significantly increased our Chinese operations over the past four years and believe that China represents a significant market opportunity for further growth. We invest human and capital resources to enhance local capabilities, production capacity and engineering support from Germany.
We target the Chinese market with a number of technologies that specifically address growth areas in the fields of electrification, cleaner internal combustion engines, robotics and industrial automation.
The combination of German technology and Chinese production efficiency and commercial agility contributes year-on-year growth realisation in China.
The acquisition was announced on 5 November 2019 and completed on 8 January 2020. On 1 April 2020, we completed the integration of INTORQ and the former Industrial Drive Systems into the new Industrial Brakes business unit.
INTORQ manufactures spring-applied brakes and electromagnetic brakes and clutches for electrical drive technologies. The products are used in a diverse range of applications, including geared and servomotors, electric forklifts, wind power, cranes, hoists, elevators and escalators.
INTORQ has production sites in Aerzen (Germany), Shanghai (China), Atlanta (the U.S.) and Pune (India) and produces approximately 1 million brakes and clutches per year. INTORQ has annual revenues of around EUR 57 million and nearly 300 employees.
The combination with INTORQ, creates a leading industrial brake company with a full range of high-quality industrial brakes in an expanded number of growth markets in Europe, China, the U.S. and India. The realisation of the targeted EUR 2 million run rate for cost synergies as per the end of 2020 is on track.