Based upon our matrix organisation, we determine our key financial performance indicators as follows:
Our management decisions are taken primarily on the basis of the key indicators that are determined for the Pumps, Valves and Service segments: order intake, sales revenue and earnings before interest and taxes (EBIT). For further information on these key indicators see the Notes to the Consolidated Financial Statements, section VIII. Segment Reporting.
In addition, we take the earnings before income taxes (EBT), pre-tax return on sales and net financial position into consideration for controlling the Group as a whole. The pre-tax return on sales describes the ratio between earnings before income taxes (EBT) and sales revenue; net financial position is the balance of financial liabilities and interest-bearing financial assets (current and non-current financial instruments, interest-bearing loans, cash, and receivables from cash deposits). When specifying and evaluating these key indicators, we are guided on the one hand by developments in the market, and on the other by the performance of our key competitors.
We do not consult any non-financial performance indicators for controlling the Group and for making decisions regarding management issues. However, we attach great importance to matters relating to our employees, environmental protection and corporate social responsibility. For more information see the Management and Issues 2014 section.