Sustainability Report2019Contents_Foreword

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1_Strategy and Integrity
Our Profile
Strategy and Organization
Values and Compliance
Responsibility for Society

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2_Environment
Environmental Management Approach
Performance in the Reporting Period

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3_Employees
Employees – Our Aspiration, Our Responsibility

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4_Products and Supply Chain
Product Responsibility
Responsibility in the Supply Chain

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60_GRI Index_Fact base
_The Report_Imprint and Contacts

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113
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Dear Readers,
Voith has a track record of over 150 years of successin industry, of continual innovation, and of shaping
technological transformation in a socially responsible
way. Companies with such a long tradition are particularly required to fulfill their responsibility to society andto shape its future sustainably. We are rising to meetthis challenge and intend to become a catalyst andco-shaper of a decarbonized industry in the digital age.
Finding answers to the great issues of our time is what spurs us on and characterizes ouractions as a company. Our focus here is on the three megatrends of decarbonization,
digitalization, and the circular economy. We are driving regenerative hydropower, enabling
paper production from naturally renewable raw materials, and developing drivetraintechnologies for efficient, environmentally friendly mobility. These examples illustrate how
Voith is contributing to the sustainable development of entire macroeconomies throughour products, our know-how and our high-performance team.
With the Sustainability Strategy as our compass we have been working for many years
to achieve continual and above all measurable improvements. At the beginning of thecurrent fiscal year we entered our new target period, which for the first time also includes
a specific CO2 target.

With this tenth successive Sustainability Report we are once again making our actionstransparent. After all, our stakeholders decide whether our sustainability measures are
successful: Their assessment forms the benchmark for our actions, as this reflects theeffectiveness of our activities in the respective fields of action.
We also have our sustainability performance constantly examined through external ratings.
Last year for instance, ISS ESG once again awarded Voith Prime status, thus continuing
to place us in the top 25 % of our sector. We benefit from this recognition economically aswell as professionally, as ratings such as these are increasingly a major factor for banks inassessing a company and thus its creditworthiness. This is what sustainable business is
all about: environmental and societal improvements leading to tangible economic benefits.
We intend to keep setting the benchmark in our industries and markets regarding sustainable business. This goal has shaped our engagement from the very beginning, and it mostespecially applies when business and society are facing major challenges, as is currently
the case. We firmly believe that doing business sustainably will also lead to persistent,
long-term economic success.
I thank you most warmly for your interest in Voith’s sustainability commitment – and wish
you an informative and inspiring read!
Sincerely yours,

From 2022 onwards, all Voith locations worldwide will have a CO2 footprint of zero.
To achieve this, our energy sourcing will be fully CO2-neutral and we will compensate
unavoidable CO2 emissions. Furthermore, Voith will invest €5 million annually in the energy
efficiency and own energy generation of its locations.

Dr. Toralf Haag
President and CEO

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1_Strategy and Integrity
1.1 Our Profile
The Voith Group is a global technology group. With our broad portfolio of production
plants, products, industrial services, and digital applications, we set standards in fivemarkets: Energy, Oil & Gas, Paper, Raw Materials, and Transport & Automotive. As
one of Europe’s largest family-owned companies, the way we conduct business has
always been geared towards sustainable, profitable growth.
At Voith we define business success as a constant, long-term undertaking. Our
shareholders, the Supervisory Board, and the Voith Corporate Board of Management
work together under a joint commitment to develop the company in an economically,
environmentally, and socially sustainable way. Clearly defined values serve as ourcompass – and sustainability is one of them.
Our economic strength is based on the following four strategic principles which wehave carefully established over the decades:
A diversified product portfolio based on megatrends
An international footprint and strong local roots• Our innovative capabilities• Our financial independence as a family-owned company.
••

On this basis, over recent years Voith has set a strategically important course,
consolidated its product portfolio, and improved its operating profitability throughtargeted measures and initiatives. In the 2018 / 19 fiscal year we defined five strategic
priorities across all measures, which will help us continue to drive our economic
growth in the future.
Annual Report 2018 / 2019 p. 23 / 24

We want to create sustainable technologies for future generations – and this central
aspiration determines the core of our economic activities. Today, our core businessalready addresses the global megatrends of digitalization, decarbonization, and thecircular economy – for developing hydropower, for resource-efficient paper production,and for the electrification of mobility. In future we intend to expand our sustainability
portfolio and help co-create the decarbonized industry in the digital age. We will
strengthen our own role in the circular economy and work consistently on becoming
the benchmark for sustainability in our markets.
Overview of The Group
Voith is represented at locations in over 60 countries and maintains a comprehensive
network of production, service, and sales units on every continent. Voith GmbH &Co. KGaA, headquartered in Heidenheim an der Brenz, Germany, is the management
holding company and parent company of the Group. The Group’s core functions
are also concentrated within it. The Corporate Board of Management of Voith
Management GmbH is responsible for the strategic and operational management of
the Voith Group. Voith Management GmbH, which is 100 percent family-owned, as
is Voith GmbH & Co. KGaA, manages the businesses of Voith GmbH & Co. KGaA
as the personally liable shareholder. The General Managers of Voith Management
GmbH are appointed by the Shareholders’ Committee of Voith Management GmbH.
The supervisory body of Voith GmbH & Co. KGaA is the Supervisory Board.
Annual Report 2018 / 2019 p. 10 ff., 16 and 176 ff.

The operating business is organized into four Group Divisions:• 	
The Group Division Voith Hydro is a leading full-line supplier for equipping hydropower plants, providing customized, long-term solutions, and services covering
the entire plant lifecycle and all major components for large and small hydropower
plants.
• 
The Group Division Voith Paper is a leading full-line supplier in the paper industry.
Thanks to constant innovation, Voith Paper continually optimizes the paper
production process and enables resource-efficient production.
• The Group Division Voith Turbo is a specialist in intelligent drive solutions, systems,
and leading-edge services. It works with customers from highly diverse industries

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and rail and commercial vehicles.
• The Group Division Voith Digital Ventures brings the Voith Group’s long-standing
automation and IT expertise together. Founded in 2016, this Group Division playsa central role for Voith in the development of new digital products and services.

The number of orders received increased significantly, driven by a strong increase in
the Group Division Hydro, and amounted to € 4,691 million (+9 %). Orders on hand in
the Voith Group increased by more than € 400 million to € 5,630 million, the highest
level in seven years. Sales also grew slightly to € 4,276 million (+2 %). We wereable to increase the operating result disproportionately, with EBIT rising by 12 % to
€ 215 million. Accordingly, the return on sales and ROCE improved noticeably. The
bottom line, Group net income after taxes, was reported at € 72 million – an increaseof 49 % versus the previous fiscal year.

Organizational structure
Voith Group Divisions
Voith GmbH & Co. KGaA

Hydro

Paper

Turbo

Business Development 2018 / 19
The Voith Group performed well overall in the 2018 / 19 fiscal year, despite a challenging market and competitive environment, and returned to profitable growth. As
announced, we improved all key figures in the Group and achieved our corporate
targets.

Digital Ventures

Following this good result in the fiscal year now closed, the Voith Group’s financial situation continues to be very solid. As at the balance sheet date, net liquidity
amounted to € 552 million and thus remains at a healthy level.
Management System
The key financial performance indicators for the Voith Group are the development oforders received and sales, as well as EBIT (earnings before interest and taxes) and
ROCE (return on capital employed).
Annual Report 2018 / 2019 p. 21 f.

In the 2018 / 19 fiscal year we invested € 113 million in property, plant and equipment,
and intangible assets (previous year: € 94 million, +20 %), mainly in further improving
our production sites. As a percentage of the Group’s sales, our investment ratio
amounted to 2.6 % in the reporting year (previous year: 2.2 %).
Fact base Economic Indicators
Fact base International Focus
Annual Report 2018 / 2019 p. 37

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Further Strengthening the Core Business
Voith adjusted its growth strategy in the 2018 / 19 fiscal year. The focus remains onfurther strengthening the successful core business, also through targeted acquisitions.
For example, in September 2019 Voith announced the takeover of BTG, one of thelargest acquisitions in company history at € 319 million. BTG is active worldwide as aprovider of integrated, highly specialized process solutions for the global pulp and paperindustry and will strengthen Voith Paper’s position in the future as a full line supplier.

Excellence Initiatives Continue
The pursuit of excellence remains one of our core principles. The initiatives of ourGroup-wide excellence program are progressing consistently as part of our strategy
for profitable growth. Initial successes due to our excellence measures in the areas ofEngineering, Production and Administration, as well as the planned focus of German
production on fewer and larger locations, will have a positive effect on the result.
Therefore, our plan stipulates a significant increase in EBIT and ROCE during the2019 / 20 fiscal year while keeping the development of sales revenue stable.

One of the new venture activities in the reporting year is Pilotfish, a provider of cloudbased applications for public transport. In January 2019 Voith acquired 56 % of theSwedish company, which is now being integrated into the Voith Group. In addition,in April 2019 we founded a joint venture with TSP, a globally leading American
technology service provider. The new joint company, TSP OnCare Digital Assets
Inc., offers manufacturer-independent services for automation and digital products
and has been one of the key suppliers of services to quality control and monitoring
systems in the US paper industry from the outset.

Digital Agenda
Voith pursues the goal of co-shaping industrial digitalization, and will continue to invest
strongly in key competencies for the industrial Internet of Things (IOT) megatrend in
the coming years. Building on our broad technological know-how and deep market
knowledge, we want to become a driving force and co-shaper of the decarbonizedindustry in the digital age. This is an overarching principle across all Group Divisions.

Our venture portfolio continues to include the digital service provider Ray Sono,
FlowLink Systems, a provider of industrial valves and components, as well as Voith
Robotics. The recycled paper marketplace merQbiz is shown as a discontinued
operation; initial discussions are underway with potential investment partners whowant to continue merQbiz together with Voith as a minority shareholder.

Continuing to expand our digital product and service offering therefore remains a
strategic focus. Our strictly customer-focused digitalization strategy is already showing measurable successes: For example, our OnCumulus modular platform for theindustrial Internet of Things, which we developed in-house, is seeing a strong increasein demand. Likewise, acquisitions such as Pilotfish and joint ventures such as TSP
OnCare Digital Assets Inc. are helping Voith continue to expand its offering of digitalproducts and solutions throughout the value chain in the major Group Divisions.

Large Hydro Order Creates Organic Growth
Numerous new orders ensure Voith’s organic growth in the coming months and years,
in particular the award of the Snowy 2.0 project: This is one of the largest pumped
storage power plants in the world, for which Voith Hydro will supply six reversible
pump turbines to Australia. Snowy 2.0 is the second-largest single order in the
152-year history of the Voith Group.

To align our digital offerings even more closely with customer needs, the Group
Divisions are responsible for marketing the digital product portfolio in our core markets
as of the 2018 / 19 fiscal year. This means they are being given significantly more
responsibility for further expansion of the digital business in their markets.

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1.2 Strategy and Organization
Sustainability as a Core Objective
As a family-owned company we are committed to environmentally friendly, fair, longterm business practices. Furthermore, we intend to create measurable added value
for the sustainable development of our company, society, and the environment. The
goal we set ourselves regarding the way we conduct business is also correspondingly
high: We want to make Voith the benchmark in sustainability issues globally and in all
markets and sectors in which we are active. With clearly structured processes andan effective sustainability organization, we see ourselves as well positioned to meetthis objective. Our engagement in this area is also viewed increasingly positively byexternal parties. For example, the Prime status confirmed by ISS ESG in the reporting
year enables Voith to obtain more favorable terms on the capital market.
Efficient Sustainability Organization
At Voith, sustainability is seen as a cross-functional responsibility shared by our
Corporate Board of Management, Group Divisions, and Corporate Departments. The
central function Corporate Sustainability & HSE sets the framework for our strategic
focus and the way we organize sustainability, and reports directly to the President andCEO. It takes decisions on the necessary tools and methods, such as our sustainability database and associated reporting tools, used within our Group to measureand steer our sustainability activities. Furthermore, this central function is directly
responsible for the Sustainability Office.
The Sustainability Office uses benchmarking and environment analyses as well as
intensive dialog with stakeholders to ensure that essential requirements for thecompany are identified and transferred to the organization. It is also responsiblefor internal and external reporting, and for the coordination of communication tasks
relating to sustainability. The organizational anchors for Green Controlling and theongoing strategic development with regard to sustainability are also placed here.
In addition, the Sustainability Office is a central point of contact for customer queries
and ratings with a focus on sustainability. The Office gathers requirements, develops
suitable strategies and measures in collaboration with the specialist departments, andmonitors their implementation.
In the 2018 / 19 fiscal year, the Sustainability Office developed the sustainability strategy further and agreed the respective goals with the Corporate Board of Management.
The central aim here is to make continuous and measurable improvements in theareas of environmental, social and corporate governance to create economic value
added for the company. For example, we intend to achieve a leading position in our
industries by 2025, as confirmed by external and independent rankings and ratings.
To make this goal measurable, the Sustainability Office has evaluated the results ofthe stakeholder dialog and carried out a detailed determination of Voith’s positioning
in the area of sustainability. To do so, a comparison group of 79 relevant customers
and competitors from all relevant markets was defined. The result: Voith is alreadya leading company in terms of sustainability in its traditional sector of mechanicalengineering, but we need to take further steps across all other industries to achieve aleading position here as well. In joint workshops, the specialist departments and theSustainability Office have already identified the corresponding potential for optimization.
We will provide information on progress in the Sustainability Report.

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New Steering Committee EstablishedAs the central steering committee for all sustainability activities, the Corporate
Sustainability Council (CSC) has so far reported directly to our Corporate Board ofManagement. The Committee did not meet in the fiscal year just passed and was
replaced at year-end by the newly established Quality and HSE / Sustainability Board.
We intend to anchor the topic of sustainability even more firmly at our locations bymeans of target- and demand-oriented management in the Group Divisions. During
the transition phase, the corresponding sustainability activities were continued via the
Sustainability Office on departmental and operational levels. The Group Sustainability
Policy will be revised in the 2019 / 20 fiscal year to reflect this organizational change.
Group-wide Approach to Sustainability
We take a systematic approach to implementing our Sustainability Strategy and havedefined five fields of action to do so. Practicing sustainable corporate governanceand our pursuit of profitable growth are just as much a part of these fields of action
as our responsibility towards our products, the environment, and our employees.
We routinely bring transparency to these topics, publish our objectives and activities, and document our progress. Top priority is given to informing and raising theawareness of our employees. For instance, our internal quarterly reports contain adetailed list of measures outlining the tasks, responsibilities, and deadlines for each
operational level. In the fiscal year, we made greater use of the opportunities offeredby online communication to involve employees and the respective operating units

even more closely in our sustainability activities. The response via social media inparticular shows how firmly the topic of sustainability is now anchored in the company
and how willing our employees are to get involved. We also ran a higher number ofarticles and interviews on the subject of sustainability in our employee magazines.
Targeted Reporting Increases Transparency
We have kept all our stakeholders updated through our annual Sustainability Reportsince 2009, in which we focus on the fields of action that our company and stakeholders identify as most material. The report is made available online together witha supplementary fact base that includes detailed information intended mainly forsustainability experts and specialists. In addition to the above, we have explained oursustainability activities for many years now in our Annual Reports.
Comprehensive Stakeholder Dialog
Maintaining ongoing dialog with stakeholders is vital for a global group such as Voith
and we have done this for many years. Our key dialog partners include shareholders,
supervisory committees, rating agencies, employees, the Works Council, our customers, suppliers and investors, as well as neighboring communities, trade associations,academia, government agencies, and policy-makers. We also focus on NGOs, suchas the World Wide Fund for Nature, as well as the broader interested public.
Fact base Memberships and Associations

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Stakeholder Survey and Materiality Analysis
A regular stakeholder survey provides the basis for analyzing feedback from various
stakeholders and then incorporating the findings into our company’s decisions. Key
stakeholders such as employees, customers and job applicants are surveyed about
their expectations towards the management at Voith and an assessment of theirperceived performance. This ensures that the respondents only give information on
topic areas in which they have some expertise.
The most recent survey in fall 2018 was taken into account in our engagement fromthe 2018 / 19 fiscal year onwards and shapes the underlying materiality analysis. This
helps us prioritize our sustainability activities and define the crucial aspects for ourcompany. In 2019, stakeholders’ stated expectations were used to align the focus
areas in the specialist departments and in sustainability reporting. For the full list of
topics that are material for Voith, see Voith Sustainability Report 2018.
Part of the 2018 / 19 stakeholder dialog was also an impact analysis, according towhich Voith has the most impact on the economy, society and the environment in
the fields of products (30 %), sustainable corporate governance (24 %), employees(21 %), the environment (15 %), and the supply chain (10 %).
Outlook Stakeholder Dialog
With a new survey model, we aim to better reflect our stakeholders’ varying expectations and also integrate the often highly differing requirements of the regions. In
addition, we plan to increase the frequency of surveys to allow us to respond evenmore promptly to our stakeholders’ proposals. Against this background, we also plan
to review our stakeholder dialog concept. In future we will include qualitative elements
such as interviews to a greater extent; we also intend to make greater use of theopportunities offered by social media in order to better understand the requirementsof our stakeholders and to be able to react more quickly to current developments.

Stakeholder Survey Results: Three Key Aspects per Field of Action
Employees
1.	Strategic personnel development and training through continuous education andtask-related training.
2. Ensuring safe working conditions by preventing accidents, noise and fire.
3. Promoting work-life balance with flexible, uniform working time models.
Products
1.	Cooperating with customers as partners in product development.
2.	Price / quality ratio of products in relation to their lifecycle.
3.	Use and/or development of digital solutions to further optimize the product portfolio.
Sustainable corporate governance
1.	Good corporate governance in the sense of legally compliant, value-aligned business practices.
2. Long-term business model that ensures sustainable and profitable company development.
3. Transparency regarding business practices as well as political and/or social commitment.
Environment
1.	Efficient use of materials, avoiding waste, and recycling in production.
2. Use of renewable energy and reduction in greenhouse gas emissions.
3.	Energy efficiency in production, e.g. optimizing use of energy in processes.
Supply Chain
1.	Build and maintain cooperative long-term supplier relationships.
2.	Transparency about upstream value chains with regard to purchased materials and meansof production, including their origin.
3.	Control mechanisms for compliance with laws and environmental and social standards in the
supply chain (e.g. audits, training).

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1.3 Values and Compliance
How We See Ourselves
Voith unites the tradition of a family-owned company with the needs and culture of a
global group. Clear values define the way we conduct business: We are innovative,
reliable, fair, sustainable, and ambitious. Our values, and the guidelines we derivefrom them, ensure that Voith acts according to a unified set of business principles
and a consistent philosophy worldwide.
Our Company Values
Ambitious: We live for challenges and set ourselves ambitious goals so that we can grow – both asindividuals and together as a company.
Innovative: We want to implement ambitious ideas as innovative technology. To do so, we listen
attentively, observe precisely, and consider new paths. This allows us to identify the direction the world
and our customers are taking, create value-adding solutions, and set new benchmarks in our markets.
Reliable: At Voith we consistently strive for our customers’ and partners’ trust by only promising what
we can actually deliver. This helps build stable and long-term relationships.
Fair: We engage with all of our stakeholder groups with respect, openness, honesty, and humility. This
is not just about adhering to guidelines and laws, but demonstrating our ethical attitude.
Sustainable: We always act in accordance with our responsibility towards society and the environment.
Our technical innovations are intended to contribute towards global growth and wealth. As a familyowned company, our aim is lasting financial independence.

CoC Code of Conduct

Code of Conduct Binding on All Employees
Voith’s main business principles have remained unchanged for almost 100 years.
Back in 1927 Hanns Voith stipulated that: “In the business world one must be ethical,
decent, and honest. If a contracting party or competitor behaves unfairly, this does notgive us the right to deviate from this principle.” These principles still govern the way
we conduct business today. Our Code of Conduct defines the way we act towards
customers and business partners, as well as how employees behave towards one
another within the company. It can be viewed online and provides information on
points of contact and the Voith Compliance Committee. We require every single oneof our employees to comply with prevailing legislation and our company’s internal
regulations, right across our Group and all hierarchical levels. On signing the employment contract this obligation is formally established in writing, and any breaches are
met with disciplinary measures. We constantly update our rules and procedures, andadapt them to meet current requirements. In addition, our values play a central rolein the Voith Academy training programs, such as our Start-up Leadership Programfor prospective executives.
The Voith Code of Conduct sets out clear standards that are aligned with establishedexternal charters and principles. The key principles include:• Observance of the rules of fair competition• No anti-competitive agreements• No corruption or bribery, neither offering, granting, or demanding bribes, or
accepting unfair advantages• Transparency on donations and sponsorship• Safeguarding our own trade secrets and patents, and respecting thoseof third parties• No undue preferential treatment of suppliers and service providers• Respect for human rights, fair working conditions, and rejection of child andforced labor• Tolerance and equal opportunity

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Clear Responsibilities: The Voith Compliance Organization
The Voith Compliance Committee establishes, develops, and coordinates ourCompliance Program, revises compliance regulations, and coordinates training. This
committee meets monthly and comprises the Head of Group Legal Affairs (Chairman)
as well as the respective Heads of the Group Human Resources Management andGroup Audit Departments. The Voith Compliance Committee Chairman reports directly
to the Corporate Board of Management of Voith GmbH & Co. KGaA and to the Audit
Committee of the Supervisory Board. The CFOs of the Group Divisions and theindividual Group companies serve as the Compliance Officers in their units. Within
their area of responsibility, our Compliance Officers are responsible for implementing
our Code of Conduct and also serve as Group-wide points of contact. This is alsoaligned with the rest of our Risk Management organization.
Keeping Knowledge Up to Date Is Mandatory
All of our employees with access to computers are required to keep themselves
regularly updated on compliance issues and on our Code of Conduct via oure-learning programs. Through their successful participation, employees also explicitly
document that they are fully aware of our Code of Conduct and have understood
the appropriate regulations. Around 97 % of our employees with a computer workstation completed our programs on Anti-Corruption and Antitrust Law, as wellas on Leadership and Employees. A higher degree cannot be achieved owing tocustomary headcount fluctuation in a company, so we assume these programs
cover our full workforce. Employees who do not have a computer workstation
are trained by their line manager to ensure their knowledge is up to date. In thereporting year we continued to hold face-to-face courses, which are assigned
automatically to employees. 604 employees, comprising mainly managers andemployees from Sales and Purchasing, took part in 29 events. Separate, highly
detailed training courses were offered to Compliance Officers from our Group Divisions.
Fact base Compliance Training

Fact base Compliance Guidelines for External Security Personnel

Group-wide Information and Complaints Reporting System
In principle, any stakeholder, including our own employees, can report complaints
to Voith or notify us of abuse or breaches of the Voith Code of Conduct. They are
free to report these instances to a variety of points of contact: direct line manager,competent HR representative, the Group company’s or Division’s Compliance Officer,
or any member of the Compliance Committee. Details on how to get in touch withthese points of contact are provided to employees in an appropriate way throughout
the Group, including via the Compliance intranet page.
Fact base Escalation Paths

An employee who reports a suspected breach of the Code of Conduct on the basisof firm evidence will not suffer any detriment. This right is laid down in our Code of
Conduct (Group Directive 01 / 07). If necessary, Voith will take measures in eachindividual case to protect the employee reporting the suspected breach against any
such detriment. To the extent possible and permissible under law, Voith will maintainconfidentiality regarding the identity of employees reporting a breach of the Code of
Conduct, or a suspected breach of its guidelines. The same applies to the identityof employees involved in the investigation of breaches of the Code of Conduct or asuspected breach thereof.
We also follow up on complaints submitted anonymously via our Group-wide whistleblower system, with the number and type of breaches documented centrally. This
whistleblower system can also be accessed by external parties at any time via ourcompany website and is thus also open to all our business partners and suppliers.
Any type of complaint on any subject can be reported. And to ensure the strictest
confidentiality is maintained, information about the number, type, and nature ofcomplaints is not disclosed to external parties as a matter of principle.

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Reports relating to environmental protection can also be submitted to the local
Environmental Officer. The exact complaints process and escalation paths are set
out in our HSE Group Directive and its annex, Environmental Incidents. Complaints arecommunicated based on their severity along disciplinary and functional reporting lines.
Fact base Breaches of Compliance Regulations

Compliance Reviews Guarantee Effectiveness
The Group Internal Audit Department examines observance of all compliance regulations in a routine risk assessment involving around 35 operating units annually. We
ensure that our business partners comply with our regulations by means of a SupplierSelf-Assessment (SSA). In addition, all representatives and advisors are checked at
the start and at regular intervals. The audit also covers topics such as corruption
or blacklisting and is based on the database of an external service provider, among
others. This is laid down in the corresponding Group directive. Finally, compliancealso forms part of our General Purchasing Conditions (GPCs).
As in virtually all companies, in the reporting year there were isolated cases of compliance regulations breaches at Voith. Appropriate action was taken in all instances.
Continuous Optimization of Compliance Organization
We work tirelessly to optimize our Compliance organization and adapt it to meet new
standards and requirements. For example, in January 2017 we implemented theprinciples of the UK Modern Slavery Act in our company. In light of this, among otherthings we also published our Management Board Declaration on Human Trafficking,Forced Labor and Child Labor. Furthermore, in the previous year we reviewed ourcompliance system against the requirements of the German federal government’s
National Action Plan on Business and Human Rights.
Management Board Declaration

Statement
Voith – since more than 150 years – is a 100 % family owned company. As such, Voith is deeply
rooted in the philanthropic values of the Voith family and fully acknowledges its responsibility as agood corporate citizen.
Already in 1927, long before the modern meanings of compliance and sustainability even existed,
Voith expressed its principles of business conduct as follows: “In the business world one must be
ethical, decent and honest. If a contracting party or a competitor behaves unfairly, this does not giveus the right to deviate from this principle.”
This statement is still today part of Voith’s DNA as it is expressed in the foundation of our Code of
Conduct (CoC): “Voith is aware of its responsibility to society, and it acts accordingly. We recognize
the duty of our company and our employees to serve the common good.”
Voith shares the values contained in the UN Global Compact principles. Together, the Voith Code of
Conduct and the Voith values cover all areas addressed by the UN Global Compact.
However, Voith also shares the criticism of many NGOs that companies can misuse the UN Global
Compact initiative as an instrument of ‘greenwashing’, which is also why Voith is not a member ofthe initiative. We at Voith are strongly convinced that our historically grown individual commitment
as it is stated in our Code of Conduct and expressed by our values is the right and maybe even the
better approach.

No Compromise Against Corruption
For Voith, taking rigorous action against corruption goes without saying. This is why
all Compliance Officers are required to keep a Risk Control Matrix, which also includes
potential corruption risks for their specific Group unit, and to name and assess theidentified risks. This structured process covers all Voith locations worldwide; theresults of all Group Divisions are aggregated and form the basis of internal compliance
audits, among other measures.

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Our risk assessment is based on many factors including the Corruption Perception
Index (CPI) published annually by Transparency International. The index ranks virtually
all countries by their perceived levels of corruption on a scale of 1 to 100. As ourcompany maintains business relationships all over the world, special precautionary
measures apply to high-risk countries, whereby the risk manager responsible decides
on the most appropriate measures.
Human Rights
As a global group, Voith observes human rights as a matter of course. The framework
for this is set out in the Code of Conduct, which is binding for all employees via a
corresponding Group directive. Through our General Purchasing Conditions we also
ensure that our suppliers and business partners are involved in upholding humanrights. As part of this, we also incorporate the assessments of our internal management systems, such as the Risk Country List, into our action planning activities.
Voith rejects any and all forms of human trafficking, forced labor and child labor,
and has accordingly issued a Declaration, which is publicly available online. Thisdeclaration is in accordance with the UN Universal Declaration of Human Rights
1948, the California Transparency in Supply Chains Act 2010, and the UK Modern
Slavery Act 2015.
Confidential Treatment of Information
Information security and the protection of personal data take top priority at Voith.
Every employee is expected to show appropriate awareness of security and a senseof responsibility. Appropriate handling of operational and business information, as
well as the personal data of our business partners and employees, is governed by

our Group Directives on Information Security and Data Protection. We are pleased
to announce that there were no notifiable breaches of data security in the reporting
period. The processes implemented at our data center in Heidenheim are certified
according to the international standard ISO / IEC 27001.
Taxation Compliance
At Voith we see compliance with all statutory taxation requirements and fulfilling our
tax obligations as a matter of course. Our Group’s taxation strategy is aligned withour company’s values and commits us to interacting with tax authorities in a fair andtransparent manner.
Transfer prices within the company are always based on the “arm’s length” principle
and are always lawful. In addition, Voith avoids implementing artificial structures purely
for tax purposes: This is clearly regulated in our Group’s corresponding transfer pricing
guidelines, through which Voith follows the OECD standard. Voith has no subsidiaries
in countries that are on the EU list of non-cooperative countries and territories fortax purposes. Voith always meets its obligations to the tax authorities completely
and on time via country-by-country reporting. A complete list of the companies andcountries included in the consolidated financial statements forms an integral part ofthe same statements.
To further improve compliance in the area of taxation, in the reporting year Voith
continued to develop its internal taxation auditing system to become a tax compliance management system that is almost completely integrated within the Group’s
compliance management system.

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1.4 Responsibility for Society
We see ourselves as a company that plays an active social role – something that has
been part of our DNA ever since we were founded. In Heidenheim, where we have
our headquarters, as a good neighbor we are actively involved in various initiatives, forexample as sponsor of a training program run by the Sonderberufsfachschule Hanns
Voith (Hanns Voith Special Vocational College). We focus on the areas of sports,
education, social affairs, and culture, which we support either through direct financial
contributions or in-kind benefits. In doing so, we always ensure strict compliance with
our Code of Conduct and applicable laws.
Group Directive Sets the FrameworkEver since 2008, our Group Directive on Donations and Sponsorship has set out thetype and scope of our commitment. It also outlines the financial frameworks of ourdonations. The budget is based on the previous year’s Earnings Before Tax (EBT)and is limited to a maximum of 1 % of EBT or at least two-thirds of the volume offunding in the year before last, unless otherwise determined by the Corporate Boardof Management. This ensures that we can provide consistent support, irrespective ofany volatility in our company’s development. We record our donation and sponsorship
activities, covering all our global activities and across all business units, using ourinternal management systems. In the 2018 / 19 fiscal year, organizational responsibility
passed from the Legal Affairs Department to Corporate Communications, so that all
activities for both sponsorship and donations are now coordinated by one department.
The Head of Corporate Communications updates the Corporate Board of Management
once a year on how funds have been allocated across the entire Voith Group.
We apply clear criteria in selecting projects. To qualify for assistance, we must above
all be convinced of the recipient’s integrity and that their project is a worthy one. We
also take into consideration the regional relevance and the appropriateness to ourbusiness segments, values, and corporate culture. Furthermore, we consider thefrequency and volume of previous contributions, ensuring these are distributed as
widely as possible. Irrespective of this, in humanitarian emergencies where urgent
action is demanded we provide help quickly and directly.

By contrast, our sponsorship activities always focus on the appropriateness of thecontribution and the benefit we receive in return. This is because we follow additional,
mainly communicative goals besides providing sponsorship. Irrespective of this, it isalso highly important to us that our sponsorship partnerships are engaged in worthy
and reputable causes.
Fact base Donations and SponsorshipSocial Engagement Activities Follow Set Guidelines
Our social engagement activities are managed by Voith GmbH & Co. KGaA, headquartered in Heidenheim. Within the company, responsibility for the areas of donations
and sponsorship is now coordinated by Corporate Communications. Individual Group
Divisions and local Voith companies can also launch and run their own assistanceand sponsorship projects, provided they comply with our Group Directive and areapproved in accordance with the process specified within it. Many of our employees
volunteer their spare time to assist people in need. We support them by granting
temporary paid release from work and providing materials or equipment that is nolonger required.
We also support numerous initiatives and projects in coordination with the Hanns Voith
Foundation. Through its activities, this independent foundation regularly engages innumerous local and cross-regional initiatives, and also provides financial support in
the form of annual donations to various projects.
Hanns-Voith-Foundation

Our Engagement Activities in the Reporting Period
In the reporting year we invested around € 2.27 million in social engagement activities (previous year: € 1.64 million). Of this, we provided € 1.23 million in the form ofdonations, while € 1.04 million was used for sponsorship measures. We spent thegreatest share on education (49 %), followed by sports (39 %), social projects (8 %),and cultural projects (4 %). In the reporting year no political parties or political organizations received any financial contributions from Voith, nor did they in the year before.

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Fact base Donations and sponsorship for political parties and party-political organizations

Involvement in Sports with a Local Focus
Voith sponsors professional as well as amateur sports and – albeit with a focus on
Heidenheim – supports sports clubs and events around the world. In the reporting
year we invested € 0.88 million in this area (previous year: € 0.86 million). Voith is along-standing supporter of the professional soccer club 1. FC Heidenheim 1864 e. V.,
based in the same city as our headquarters. This involvement includes sponsoring
the naming rights to the Voith Arena and supporting the club as the principal sponsorof the soccer shirts and perimeter boards. Through this, we intend to increase theattractiveness of the location for our employees and make it a more appealing place
for them to spend their free time.
In addition, we sponsor the fencing center of the Heidenheimer Sportbund 1846 e. V.
(HSB – Heidenheim Sports Association) as well as the local HSB baseball team andthe HSB Athletics Department, whose training site bears the name Voith-Sportzentrum(Voith Sports Center). We believe that supporting local initiatives is an investment in
the attractiveness of the region, and one that benefits both the regional citizens andour employees. Furthermore, in the 2018 / 19 fiscal year we once again provided
financial assistance to the cycling club sunpor St. Pölten and to the Crailsheim Merlins
basketball team.

Multifaceted Educational Involvement
We support kindergartens, schools, and universities around the world, as we firmly
believe that sound education and training provide the basis for the best development
opportunities in people’s lives. In this sense we are continuing the tradition of Hanns
Voith. Since way back in 1946, in its home State of Baden-Württemberg Voith has
dedicated itself to preparing disadvantaged young people for vocational training
schemes and the world of work. What initially started as a vocational preparation andtraining course has since become an institution, and has been recognized since 2004
as the Sonderberufsfachschule Hanns Voith (Hanns Voith Special Vocational College).
16 years have passed since we began supporting the Germany-wide business@school
education initiative of The Boston Consulting Group (BCG). It gives senior high school
students a closer look at business, including hands-on experience, over the courseof a full academic year.
Promoting Culture at our Heidenheim Location
We want to give as many people as possible access to culture. As an example, in thereporting period we provided financial support to various institutions in Heidenheim,
including a € 67,500 donation to the Opera Festival.
Engagement for Integration
For many years, Voith has actively pursued its global social engagement, aimed
at improving people’s living conditions and promoting intercultural exchange. For
instance, Voith is one of the initiators of the German industry integration initiative Wir
Zusammen (We Together), dedicated to helping refugees integrate in Germany. We
are involved in providing an introductory vocational training course for young refugees
to facilitate their start into professional life or vocational training.

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2_Environment
2.1 Environmental Management Approach
As an industrial company Voith is required to comply with numerous national, regional, andindustry-specific environmental laws, regulations, and guidelines. In addition, we see it as
our responsibility towards our employees and neighbors to both prevent environmental
risks and use resources responsibly. As a manufacturer, our main focus therefore lies onenergy and resource management. This is why we are committed to continually reducing
our energy consumption and corresponding greenhouse gas emissions, making efficientand safe use of both direct and raw materials, and minimizing waste. We also aim tocontinually reduce our water withdrawal and wastewater volumes.
We have taken a consistent approach to organizing our operational environmental
protection activities – combined with our occupational health and safety activities – ina uniform business partner structure aligned with the Group’s Shared Services system.
This Center of Competence HSE serves as a one-stop shop for methods, tools, andstandards for our Group Divisions, with projects managed and coordinated directly bydivisional HSE managers. In Germany an employee from the Center of Competence
HSE additionally supports each Group Division, serving as a business partner andcentral point of contact who advises the management team of the respective Group
Division on all HSE topics.

The HSE Steering Team comprises the Heads of the regional HSE service organizations and the members of the Center of Competence HSE. It meets biannually and ischaired by the Head of the central function Corporate Sustainability & HSE. The HSE
Steering Team also conducts regional HSE audits. Our activities can be divided into
two subject areas, irrespective of how they are embedded organizationally:• Operational Environmental Protection – Eco Standards provides strategic and operational support to our divisions and locations in complying with and implementing
environmental regulations and internal environmental protection policies. All requirements and obligations arising from approvals are available in our central hse+
database. In the reporting period we expanded our system to include a risk analysis
tool that allows experts to evaluate environmental risks in a standardized way. In
the reporting year we had already conducted 221 risk analyses using the tool.
We also observed a continuous improvement in the number and quality of incident
reports. To maintain this positive trend, in 2019 we migrated our reporting system toa web-based IT solution, which further increased its user-friendliness. Furthermore,
we improved the way we exchange information with the Insurance Department.
Making a comparison with reported insurance claims ensures that our experts areaware of all the incidents that arise.
•

Our operating units are responsible for implementing health, safety, and environment
activities locally. Seasoned experts accompany the processes, helping to continuously improve HSE, leverage synergy potentials, and in doing so optimize service
costs. Furthermore, as skilled partners they can be called upon to identify risks andsystematically reduce them in a continual improvement process. Our hse+ software
provides technical support that all colleagues can access anywhere in the world.

Resource Protection – Ecological Business Management (EBM) improves energy
and resource efficiency at our locations. We are also making constant progress inthis area: In the reporting year we completed the modernization of a production
area in Heidenheim, where we plan to achieve annual energy savings of over 6
GWh through the new heating and building technology system. We also decided
to generate our own energy at several locations. Currently, the largest photovoltaic
systems we have installed are located in Crailsheim (Germany), St. Pölten (Austria),
and Vadodara (India). In addition, we are evaluating further renewable energy generation options and implementing them whenever economically feasible.

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2.1.1 Operational Environmental Protection
With our approach to operational environmental protection we aim to minimize theenvironmental impacts of our operational activities, also by embracing the latest
production processes and technologies. We attach particular importance to strategicand operational control, with the objective of ensuring that environmental regulations
are upheld.
This includes the analysis and internal communication of potential environmental risks,
categorized into risk classes according to their probability and impact. We analyzerisks associated with climate change using our newly introduced environmental
risk assessment module of our hse+ IT system (see next section). As part of our
fundamental risk analysis we investigated all relevant locations for potential risks.
Besides topics associated with climate change, which include heavy rain, flooding,and storms, our analysis also included other natural forces including seismic activity(Japan, Italy), volcanic activity (Indonesia), and forest fires (Australia). In addition tothese activities, in 2019 we performed a global analysis on the topic of water, which
identifies the risks for individual locations.
In the same year we also carried out an extensive assessment of the opportunities
and risks posed by climate change for Voith as part of our Carbon Disclosure Project(CDP). The analysis also covered the strategic approaches and measures to counter
risks identified. The results are freely accessible on the CDP website.
Highly Effective Environmental Protection Unit
Our HSE Steering Team coordinates and standardizes our operational environmental
protection activities. We ensure that our environmental protection processes andprocedures are organized as uniformly as possible through a central approvals process. In addition, we work tirelessly to continually reduce the amount and number ofmaterials used at Voith.

Our HSE Group Directive sets out specific requirements on how environmental protection is to be organized at a local level, with every Voith location required to appoint an
Environmental Officer. Their tasks cover a wide range of topics including immission
control and water protection, waste management, hazardous materials and goods,
and preventing environmental incidents. They also advise operations managers on
new plant constructions, modifications, and approval processes and conduct regularsite inspections and audits.
At our Group Divisions, environmental experts at the regional HSE service organizations ensure our Group companies are provided with systematic support. Regularsite visits as well as the documentation and tracking of measures in our hse+ systemhave proved effective, as evidenced by the positive feedback from both the sites andthe authorities. They reported that the greatest advantages of the software – which isin use globally – are the ability to store and manage all relevant documents centrally,
manage appointments reliably, and schedule reminders.
IT System as a Central Information Source
Our Group-wide hse+ IT system supports the work of our environmental experts.
With its ability to store and manage all relevant processes, documents, and analyses
centrally, the system forms the basis for efficient operational environmental protection
and matrix certification. We are pleased to announce that in the reporting year we
continued to raise the tool’s coverage to 81 % related to headcount.
Fact base Certifications

The powerful appointment management capabilities of hse+ enable all necessary steps
to be planned efficiently in advance of inspections, and allow proactive communication
with authorities. And because all Voith colleagues can access the software, they canprovide backup support if a colleague is ill or on vacation.

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hse+ also allows experts to access a central legal database that contains all the
relevant HSE regulations and standards applicable to us in each country and region.
Current legislative texts are available there, including summaries and comments in
the respective national languages. The legal requirements are assigned to the relevant
officer via the system, who is then responsible for ensuring the requirements are met.
The same applies to Voith standards, approvals, and requirements.
hse+ is also used to perform location-related environmental risk analyses, assign
implementation responsibilities to managers for the measures derived, and deadlines
which are documented and controlled in hse+. We check and update the systemregularly to include new locations, for instance. For major projects we add new service
packages temporarily, and cancel those that are no longer required at the end of the
project. This provides us with a highly effective, and at the same time inexpensive,
global environmental management system.
Group-wide Reporting System to Record and Analyze Environmental Incidents
At Voith we record and analyze all environmental incidents centrally each month usinga Group-wide reporting system based on standardized criteria. The Corporate Boardof Management is informed about the results of the analysis on a quarterly basis. We
use existing occupational health and safety categories to evaluate and rate incidents
across topics according to the same standards. In doing so, we established thatas awareness of our Group-wide standardized process increases, so too does its
use – with the positive result being that a constantly growing database also increases
the quality and conclusiveness of the analyses. We are also raising our employees’
awareness by means of targeted internal communication measures. We are pleased
to announce that no environmental incidents requiring public reporting were registeredin the reporting period.

Targeted Hazardous Materials Management Increases Safety
In its production processes Voith uses hazardous materials such as paints, lacquers,
thinners and solvents, adhesives, resins and hardeners, lubricants, cleaning agents,
and industrial chemicals. The management of hazardous materials supports our efforts
to replace particularly harmful materials with harmless substitutes. In the reporting period we began to categorize hazardous materials and consolidate them into
application groups: The twofold goal is to prevent an increase in the number of newhazardous materials we use, and to support the phase-out of redundant materials.
Our Group-wide hazardous materials approval process ensures that these materials
are handled as safely and securely as possible. A central hazardous materials database allows us to perform a uniform global analysis of the environmental, health, andsafety risks of work and hazardous materials, providing us with a valuable decisionmaking basis. We have been working hard for many years now to consolidate thewide range of hazardous materials we use in order to eliminate particularly harmful
materials and further encourage the use of low-risk substitutes as well as advancethe harmonization of safety standards across the Group.
Since 2014 around 8,200 materials have been recorded centrally, 920 of which have
either not been approved or blocked for future use. In the reporting year we processed
1,575 applications, of which approximately 5 % were rejected. Half of these were
rejected because they contained banned or critical materials, while the remaining
rejected applications were returned with a request to select a suitable substitute fromour list of approved materials. Since rolling out our centralized approval process, thenumber of new substances to be added to the database has decreased significantly.
To illustrate this, in the 2014 / 15 fiscal year 950 admission applications were received,
whereas in the reporting year this number dropped to only around 500.

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In the current fiscal year we also intend to include materials with an acute toxicity
category of 1 to 3 in our system, so they are covered by our approval process. We
expect this step will further reduce the number of materials used at Voith.

Production-related Energy Consumption
specific value in MWh / € million in revenues
113.7

Fact base Work Materials and Hazardous Materials Approval Process

We are reducing hazard potentials as well as costs by cutting the number of redundantmaterials we use. By adhering strictly to the “polluter pays” principle, we aim to ensurethat the use of approved materials in our hazardous materials database is prioritizedover all others. Doing so means we meet environmental protection, occupational
health and safety, and compliance requirements while achieving the greatest possible
degree of standardization.
However, the abundance of materials to be recorded in the database and the inclusionof additional sites presents challenges, meaning that consolidation is taking longer
than had been expected at the start of the project in 2011. Currently, we expect thatthe consolidation process for the German-speaking as well as wider European region
will be completed in the 2019 / 20 fiscal year. In the 2018 / 19 fiscal year we began
recording existing materials in the Americas and Asia in the database. Based on ourprevious experience, we expect the consolidation process to be largely completed
by the end of the 2020 / 21 fiscal year at the earliest.
2.1.2 Efficient Use of Resources
With our Ecological Business Management (EBM) we aim to identify ecological andeconomic potentials for improving our production processes and to leverage these by
performing process, system, and component-level analyses. Our individual locations
are supported by the EBM managers from the Group Divisions, with our central
function HSE coordinating the overall effort.

106.2

Target value
for 2018 / 19
Target value
for 2021 / 22

107.1

102.7

98.1
98.8
88.1

2014 / 152015 / 162016 / 172017 / 18

2018 / 19

Waste
specific value in t / € million in revenues
9.9
8.7
Target value
for 2018 / 19
Target value
for 2021 / 22

8.1

8.6

7.3
2014 / 152015 / 16

7.8
6.9

2016 / 172017 / 18

0.25

0.25

2018 / 19

Freshwater Consumption
specific value in m3 / € thousand in revenues
0.32

0.26

Target value
for 2018 / 19
Target value
for 2021 / 22

0.222014 / 152015 / 162016 / 172017 / 18

2018 / 19

0.24
0.22

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Ambitious Environmental Goals
Our activities focus on the areas of energy, waste, and freshwater for which our
Corporate Board of Management set specific targets, taking the 2011 / 12 fiscal year
as the benchmark.
The 2018 / 19 fiscal year marked the start of our next target period, with our targets
carried over based on the 2011 / 12 fiscal year. The three main drivers – energy, waste,
and water withdrawal – remain the focus of our attention. By the end of the 2021 / 22
fiscal year we aim to reduce our energy consumption by 30 %, our waste volumes by
35 %, and our water withdrawal by 40 %.

To achieve our grid mix target for 2021 / 22 and the interim target for 2024 / 25,
Purchasing is developing an electricity procurement strategy that reflects the very
different conditions for the procurement of eco-friendly electricity. The focus will
initially be on the German and US markets, as the Chinese eco-electricity market isstill at a very early stage of development.
While we narrowly missed our interim targets in 2017 / 18, for the 2018 / 19 fiscal year
we are pleased to announce that we more than achieved them (see table).
Interim target /Voith performance

FY 2017 / 18

Fact base Environmental Goals

We also intend to make an additional contribution to climate protection by achieving
specific CO2 targets. These take the 2016 / 17 fiscal year values as the benchmark andfollow a scientific approach. By this means, we intend to play our part in achieving thegoals of the Paris Climate Agreement that entered into force in 2016 – in particular,
its consensus goal of keeping global warming below 2°C. To set our targets we
employed a forecasting method that considers both our internal changes, such as thedevelopment of Industry 4.0, and external factors such as the change in the energy
mix in different regions.
In a first step, by the end of the 2021 / 22 fiscal year we aim to achieve a 25 % reduction in our CO2 emissions from our electricity consumption by optimizing our grid mix.
By the end of 2024 / 25 we aim to reduce the total CO2 emissions of our value-adding
activities by 35 %. Our goal is to achieve a 90 % cut by the end of 2049 / 50. We will
set additional interim targets and milestones for our CO2 targets from 2024 / 25, taking
into account our business development.

FY 2018 / 19

Interim target

Voith
performance

InterimtargetVoith
performance

Reduction in CO2 emissions
generated by our energy
consumption–5.6 %–2.4 %–10.9 %

–15.4 %

Reduction in CO2 emissions
relating to value-adding
activities–5.2 %–3.4 %–10.2 %

–16.5 %

Additional Target: Climate Neutrality by 2022
Furthermore, at the end of the 2018 / 19 fiscal year we decided to make all Voith
locations around the world CO2-neutral as of 2022. Until then, our targets and interim
targets remain in force and we will continue to report on them. To achieve CO2
neutrality as soon as possible, we will begin by purchasing CO2-neutral electricity
in the near term and compensating for unavoidable CO 2 emissions by means ofoffsetting measures. We are currently meeting 44.5 % of our electricity requirementsfrom renewable sources (2017 / 18 fiscal year: 38.5 %) and plan to increase thisshare progressively, both through self-generation and by increasing the amount20

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we purchase. In addition, we will invest € 5 million per annum in energy-efficiency
measures, including power self-generation at our locations.
Green Controlling Process Delivers Maximum Transparency
Our approach to environmental management has already received numerous awards.
To ensure that our resource management activities deliver both economic andenvironmental added value, we employ a four-stage Green Controlling process. It
enables us to be transparent about the pipeline of measures, shows our progress
towards implementing the measures mapped out in it, and depicts their impact on thedevelopment of indicators. This allows us to actively manage the target-achievement
process. As a current example, in the reporting period the quarterly data we collectenabled us to identify that our freshwater withdrawal had risen again at our locationin Shanghai. This led to specific steps and reduction targets being agreed withon-site management: The end result was that the location’s current figures reflect
the effectiveness of the measures implemented.
Hot-spot Analyses Leverage Further Potential
Hot-spot analyses serve to address both specific and cross-location topics. For
example, they bring transparency to the energy consumption of a specific process
step, making targeted intervention possible wherever needed. For efficiency reasons,
we focus on the greatest consumption drivers in each case. At Voith Hydro this is
the foundry; at Voith Turbo these are the buildings, machine tools, and test stands,
while at Voith Paper this is the heat-setting process.
Recent analyses confirm findings from the previous year. These show that we are
increasingly moving away from facility infrastructure topics (lighting, compressed air,
heating, ventilation, and air conditioning) towards process-specific topics (such as theuse of steel grit for sandblasting, and the heat-setting process for felt production). In
doing so we are progressively leveraging the greatest value potentials; at the sametime, the expense involved in implementing the measures is rising. Furthermore, it

became clear that organizational and conduct-based solutions need to be validated
on a regular basis. In the reporting period we conducted 16 hot-spot analyses at 9
locations. Of these analyses, over half were in the form of energy audits. We also
started a material-flow analysis for a production area in Heidenheim. We expect toobtain the results of the new methodology during the current fiscal year.
Fact base Hot-spot Analysis Methodology

2.2 Performance in the Reporting Period
In the reporting period we rolled out our new resource efficiency targets to the Group
Divisions and simplified our quarterly reporting. Going forward, we will communicate
detailed information on our resource efficiency performance in an internal sustainability
report. We have agreed on a blog-like format to accompany our quarterly reporting.
Regarding our external reporting, we expanded its scope to include the CDP report,
whose quality we will continue to improve over the next few years. In addition, we
analyzed the water risks at our locations based on the WRI Aqueduct database andthe WWF Water Risk Filter. We are currently examining how we can combine this risk
analysis with an operational freshwater efficiency target.
To gain even deeper insights into all aspects of our resource consumption, in thepast year we assessed our small and micro locations. Based on these findings, we
determined per-capita resource consumption rates at all these locations. In future
this will allow us to show the degree of coverage of our active resource management
more clearly.
Furthermore, in the 2018 / 19 fiscal year we needed to initiate the energy auditsthat are required every four years. To do so we had to align the locations and areas

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undergoing ISO 50001 certification – both with the new high-level structure of thecurrent revision of the standard and with the new legal structure of our German
production locations. In connection with this, we also incorporated each location’s
targets into our target management system. To further raise employee awareness ofresource protection, we held training courses on the energy efficiency of compressed
air systems at various locations in North America and Asia. Several recycling andwaste-management workshops were held at our Kunshan location; for one Group
Division we also developed an e-learning course on sustainability that will become
mandatory in the Division in the next fiscal year.
2.2.1 Energy Efficiency and Greenhouse Gas Emissions
Production-related Energy Consumption Falls Slightly
In the reporting period we further reduced our absolute energy consumption, despite significant growth in sales. In the reporting year our production-related energy
consumption stood at 420,040 MWh (previous year: 432,237 MWh). 98.1 MWh ofenergy was needed per € million in sales, a fall of 4.4 % versus the previous year
(102.7 MWh per € million in sales).
This improvement is due to several factors. While maintaining a high volume in termsof implemented measures, various contracting projects in Heidenheim delivered
expected energy savings, for example by means of a state-of-the-art heating andventilation system. Overall, our space-heating and building-management efficiency
projects achieved energy savings of 10 GWh globally. We also achieved improvementsby switching over to alternate fuels in the production process, such as from diesel to
LPG. By contrast, higher utilization of our foundry in Brazil – a very energy-intensive
process – had the opposite effect. However, overall, higher utilization of our production locations is making a contribution to the positive development of the relevant
performance indicators. In the reporting period the identified potential for actionsin the pipeline rose from 130.8 GWh to 135.3 GWh (+3.5 % versus the previousyear). Measures with a volume of 17.4 GWh (previous year: 23.0 GWh; –24.2 %)were implemented in the reporting period. As a result, total energy savings from
implemented measures correspond to 125.2 GWh. Taking the figures of the 2011 / 12
fiscal year as our benchmark, we improved by 22.1 %. In doing so, we achieved ourinterim target for energy consumption for 2018 / 19 and are well on track to achieve
our target of a 30 % reduction by 2021 / 22.
Fact base Energy-saving Measures and Further Potentials

Regular exchanges between our EBM (Ecological Business Management) experts
serve to identify further potentials, compare processes, set benchmarks, and implement the best solutions in each case at Voith by sharing best practices. In thereporting year our experts focused on assessing a shortfall in reporting scope andactive resource-efficiency management at small and micro locations that had notpreviously been considered. Besides heating and cooling, which account for around
30 % of our energy consumption, the production of paper-machine clothing remains
the key driver of our production-related energy use – accounting for around 26 %of our global consumption in the 2018 / 19 fiscal year. Besides weaving processes,
heat-setting is especially energy-intensive, particularly in felt production. The operationof machine tools consumes 6 % of the energy used at Voith. Due to higher utilization,a further 6 % of production-related energy consumption is accounted for by our
foundry in São Paulo, Brazil.
Fact base Production-related Energy Consumption

Main Sources of Energy Consumptionin %Heating and cooling energy
32 %

30 %

Paper-machine clothing
Machine tools
Foundry in São Paulo

6%

Other
6%

26 %

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Main Source of Energy Consumption 2018 / 19
In the reporting period there was no real change in the proportion of direct (29 %) andindirect (71 %) energy consumption (previous year 29 % and 71 % respectively). Witha share of 81 %, natural gas remains the key energy source for our direct productionrelated energy consumption, followed by LPG (liquefied petroleum gas), diesel, andheating oil with percentage shares in single digits. Among other purposes, we use
these fuels for heating and heat-intensive thermal processes. Diesel is primarily used
to operate backup generators and to generate steam at our locations in Karawang,Indonesia, and Shanghai, China, along with thermal processes in São Paulo, Brazil.
Fact base Proportion of Direct and Indirect Energy

Energy Mix Further Improved
In the reporting year 24.9 % of the energy we consumed came from renewables,with 75.1 % from non-renewable resources. This represents a slight improvementcompared to the previous year (2017 / 18: 21.5 % from renewables; 78.5 % from
non-renewables). The previous year’s figures and the value previously reported diverge
due to a change in the scope of consolidation. This calculation includes all energy
sources associated with our production-related energy consumption. Given our newly
defined CO2 targets and the associated ramp-up of our CO2 management activities,
we expect a further improvement in our energy mix in the coming years.
Fall in Electricity Consumption, Rise in Use of Renewables
In the reporting period Voith consumed 233,005 MWh of electricity (previous year:
237,354 MWh), a drop once again due to the improved efficiency of our production
plants and processes. In terms of our electricity mix, the share of energy sources
supplied by external providers was 44.5 % from renewables (previous year: 38.7 %)and 55.5 % from non-renewable resources (previous year: 61.3 %). We will be able tofurther improve our electricity mix by commissioning the aforementioned solar systems.

Furthermore, our newly formulated CO2 targets provide an additional incentive tofurther increase the share of renewables. A range of regenerative power generation
projects are already in implementation, or are at an advanced planning stage. Amongthem, projects for self-generation of solar power at Crailsheim and Sonthofen are
already contributing towards this improvement with 950 MWh / a (300 t CO2e / a),while the amount of self-generated renewable electricity more than doubled versus
the previous year.
We are currently systematically examining at which locations it would be possible
and economically feasible to implement additional photovoltaic projects, either now
or in the future. In this regard, we are considering both the facilities we operate andthose operated by third parties. However, as many of our locations have a relatively
insignificant demand for electricity compared to other business groups, long-term
power purchase agreements currently do not appear to be an alternative, owing totheir high transaction costs. This is why we are increasingly examining the possibilities
of focusing our purchase of electricity more on renewable energy sources throughbundled or unbundled guarantees of origin.
In the reporting year we achieved significant improvements by purchasing green
electricity. In Germany and China in particular, we are switching over an increasing
number of tariffs. As supply contracts expire, we will continue to achieve significant
improvements on our path to climate neutrality in the coming years. We also achieved
significant improvements in our consumption of non-renewable resources, with a dropin coal-fired generation of 13 % and in electricity generated from natural gas of 4 %.
Our purchase of nuclear power remained unchanged.
Fact base Renewable Energies
Fact base Electricity Mix

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Climate Protection as a Corporate Goal
As a family company Voith has always taken corporate responsibility for its actions
when it comes to the issues facing society at the time. This is why we aim to minimize
the environmental impact of our business activities by constantly improving our energy
efficiency. Our newly formulated environmental goals, our determination to achieve
our CO2 reduction target, and above all our aspiration to achieve net climate neutrality
all reflect our intention.

Production-related Greenhouse Gas (GHG) Emissions
total GHG emissions in t CO2e
155,048

147,035

128,7032016 / 172017 / 18

2018 / 19

Fact base GHG Emissions Recording Methodology

In the 2018 / 19 fiscal year our facilities’ GHG emissions fell by 12.5 % to 128,703 t
CO2e (previous year: 147,035 t CO2e). The share of direct GHG emissions fell by 3.2 %to 23,628 t CO2e (previous year: 24,419 t CO2e), while indirect GHG emissions also
decreased to 104,035 t CO2e (previous year: 120,047 t CO2e).
Fact base GHG Emissions by Scopes

Electricity Mix Consumption by Resource Typein %Electricity fromrenewable resources

35 %

39 %

45 %

65 %

62 %

55 %

Fact base Specific Scope 1 and 2 GHG Emissions

Our energy-saving measures alone achieve annual GHG savings of around 6,000 t;
however, differences in national electricity mixes as well as shifts in the mix of directenergy sources are causing the energy and GHG emissions indicators to diverge.
This means that energy savings at individual locations, or even production relocations,vary in their impact on GHG emissions.

Electricity from nonrenewable resources

2016 / 172017 / 18

2018 / 19

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At a number of Voith locations we are currently analyzing whether we can replaceoil-based fossil fuels with gas-based fuels. Our Group Divisions are also looking fora suitable location for our first zero-emission site.
We also consider the challenges of climate change when developing products. From
analyses of our products’ lifecycle, we know that their environmental footprint is far
greater when they are in use compared to their production stage. This is why we
pay special attention to the way we develop our products. Indeed, Voith products
regularly feature in the highest efficiency class. This way we support our customers
in delivering their services in a more energy- and resource-efficient way. We thereby
live up to our responsibility towards both our customers and society by helping
to tackle climate change with our product portfolio. Furthermore, our hydropower
solutions are contributing to climate-neutral power generation around the world. By
gearing our technology roadmaps at Voith Turbo towards electric drives, we expedite
climate-friendly mobility. Thanks to solutions from Voith Paper, we have enabled thepaper industry to achieve significant cuts in its CO2 emissions in recent years.

2.2.2 Material Efficiency and Waste
At Voith, we intend to make our processes as resource-efficient as possible bymanaging our use of direct and raw materials across the Group. However, the breadthof our product portfolio and the correspondingly diverse process landscape present
us with special challenges. Hence, we are simultaneously faced with a range of
project business requirements at Voith Hydro and Voith Paper, as well as in mass
production at Voith Turbo.
Material Efficiency Increased Again
In the reporting period we purchased approximately 198,000 t of materials fromsuppliers, a drop of around 8 % versus the previous year (215,000 t). The distribution
in terms of the materials we purchased is as follows: 54 % semifinished products(previous year: 62 %), 32 % raw materials (previous year: 28 %), 11 % packaging(previous year: 8 %), and 2 % auxiliaries (previous year: 2 %). Since more wood wasused for packaging, especially at Voith Turbo and Voith Paper owing to an increasein their business activities, the share of renewable materials increased year-on-year
to 11 % (previous year: 8 %).

Fact base GHG Emission Reduction Measures
Fact base Materials Used
Fact base Emissions from Business Trips
Fact base Emissions Trading
Fact base Air Pollutants

In the 2018 / 19 fiscal year around 42 % of the materials we used were recycled.
The recycled proportion was 60 % for auxiliaries (previous year: 60 %), 44 % for raw
materials (previous year: 45 %), 33 % for semifinished products (previous year: 29 %),and 80 % for packaging (previous year: 80 %)Using hot-spot or “Ishikawa” analyses helps us to continuously optimize our material efficiency. We utilize these analyses in line with our Excellence program, which
provides us with key starting points for identifying improvement potentials in productdevelopment and engineering.

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Higher Utilization Causes Waste Volume Increase
In the reporting period Voith generated 36,766 t of waste (previous year: 34,136 t),a year-on-year increase of 2,630 t or 7.0 %. The primary reason for this was higher
utilization of our foundry in São Paulo. Across the company, around 1,900 t more
foundry sand was reported than in the previous year.
Consequently, in the 2018 / 19 fiscal year the increase in the volume of waste relative
to sales increased once again, with the corresponding indicator rising to 8.6 t / €million in sales compared to 8.1 t / € million in sales the previous year. We therefore
fell significantly short of our interim target for 2018 / 19 of 7.8 t / € million in sales.
Fact base Waste Volume

In the reporting year the gains from measures already implemented rose from 8,596 t
to 8,808 t (+2.5 %), thanks in particular to process improvements which avoid theusage of cooling lubricant emulsion. The identified potential for action in the pipeline increased by 1.9 % to 9,188 t in the reporting period. While more significant
saving measures remain almost exclusively achievable as part of complex productre-qualification measures, the effort typically involved in the changeover must always
be balanced against the resulting benefits. The measures covered relate mainly tomaterial efficiency; the effects of make-or-buy decisions, or sales shifting to lesswaste-intensive processes, are generally not reflected.
Fact base Waste-saving Measures and Further Potentials

Wood, paper, and cardboard waste generally accounts for a high proportion of ourwaste. This is due mainly to packaging and making one-off production components
safe and secure for transportation. Owing to the size of these components, it is not
economically viable to transport empty packaging back for reuse – and even froman environmental perspective, this is questionable regarding the transport emissions
involved. In addition, owing to the high proportion of one-off and custom-madeproducts from Voith, it is often not economically viable to use separate types ofmaterial-optimized packaging. Nevertheless, in the reporting period we again succeeded in increasing the service life of some of our packaging. At our São Paulolocation, for example, wooden crates are reused wherever possible across the Group
Division.
We will also continue to take a systematic approach to minimizing waste, startingright from the product design phase, since this is where materials are selected andproduction processes are defined; whereas in the later production stages, savings
can only be achieved by reducing tolerances, oversizes, and quality improvements.
Beyond the products themselves, auxiliaries such as oils and cooling lubricants offer
additional starting points as well. If their service life can be extended by attentive
management, the waste volume can also be reduced accordingly.
However, not every waste-minimization project makes economic sense, and noteverything that brings economic benefits improves waste indicators. Indeed, theimpact of a reduction in the oversizing of comparatively lightweight roll covers, despite
the high savings potential in terms of process and material costs, is hardly noticeable
in the waste index. At the same time, while the reduction in foundry sand improves
the waste index, it generates significantly lower costs savings in terms of weight.
This is why the operational targets for reducing waste volumes and improving material
efficiency are set by the EBM management teams in the Group Divisions, together withthe locations. Consequently, the specific targets depend on local focus areas and theparameters that can be influenced there. Taking the example of oil- and water-based
cooling lubricant emulsions, this can include the service life of the respective systembefore partial or full replacement.

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Besides established methods such as recycling and waste-management workshops,
in the reporting year we initiated a detailed material-flow cost analysis for a production
area in Heidenheim to test the added value of this method based on a practicalexample.
Share of Hazardous Waste Virtually Unchanged
In the 2018 / 19 fiscal year we generated 1,667 t more non-hazardous waste and 963 t
more hazardous waste than in the previous year. Our waste classifications remained
virtually unchanged versus the previous year, with around 81 % of our waste deemed
non-hazardous and the remaining 19 % classified as hazardous.
Fact base Hazardous Waste

The increase in hazardous waste is due to increased production utilization, particularly
at our foundry in São Paulo, Brazil, which generates almost one-third of our hazardous
waste. The collection of hazardous waste at Voith is regulated by internal guidelines,
with disposal performed by external disposal and recycling companies – Voith does
not transport any waste itself. We are pleased to announce that in the reporting period
we were not notified of any violations of the law in relation to the disposal of waste by
our external disposal and recycling service providers. However, in an isolated case at
our York location in the USA we did report hazardous waste (PCBs) incorrectly. We
took immediate action by initiating a series of measures, including a process to testfor PCBs, to ensure this instance does not happen again.

2.2.3 Water
Water, and as a result wastewater, essentially play a lesser role in our production
processes compared to other industries. Consequently, our minimum standards
meet the respective legal requirements. Nevertheless, we analyze and manage ourwater withdrawal in the same way as our energy and material consumption: Water
is an elementary and precious resource, and we are therefore committed to using it
carefully. Water is also a key resource for our customers’ processes, and we aim tosupport them with efficient solutions.
We distinguish between boiler feedwater, groundwater, and surface water. We try
above all to reduce boiler feedwater consumption, also in order to relieve the local
supply. Currently, we are pleased to report that our local withdrawal activities haveno impact on the environment or on our stakeholders. If there were to be any, we
would respond through our environmental incident reporting process, resulting in athorough root-cause analysis and resolution.
Lower Freshwater Withdrawal
In the reporting period our freshwater withdrawal fell by 77,292 m³ or 7.5 % to 955,620 m³.
Of this, we use around a third for cooling purposes only, which does not contaminate
the water. In relation to our sales, our freshwater withdrawal fell year-on-year by 9 %to 0.25 m³ per € thousand in sales. The greatest driver for this improvement was the
reduction in leakages at our Shanghai location.
Fact base Water Withdrawal

Fact base Waste Disposal

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In the reporting period we reduced the volume of identified potential for action in thepipeline by 1.1 % to 806,404 m³ of freshwater, as not all planned measures proved
to be economically feasible. In the same period, however, the gains from measuresfrom the pipeline already implemented rose by 1.3 % to 799,123 m3 of freshwater.
With the overall reduction of 40.3 % achieved since the benchmark year, we arepleased to report that we have surpassed our 2021 / 22 reduction target of 40 %.
Fact base Freshwater Savings Measures and Further Potentials

We intend to continue improving upon the high level we have already achieved.
Following many years of constant improvement, our efforts to reduce water withdrawal
are increasingly declining in marginal utility.
We have always paid particular attention to the development of water withdrawal
at facilities located in regions facing water shortages. This above all concerns ourwater conservation measures at our facility in São Paulo, which has been increasingly
affected by droughts and water shortages in recent years. We are pleased toannounce that the local situation eased somewhat in the reporting period. Furthermore,
wherever technically and economically possible the local management team is striving
to reuse as much water as possible with the help of our reprocessing plant.

We identified the Voith locations with a significant water risk based on the generalclassifications of the respective tools. These will then undergo a detailed analysis toderive appropriate measures. Currently, we are still validating the findings – with an
initial interim finding revealing that water stress is currently the highest at our Indian
locations, followed by those in China and Indonesia, and then São Paulo and Dubai.
Based on the analysis, we are investigating whether and how we need to shift thefocus of our measures, but it should be taken into account that our Indian locations
currently only account for a low single-digit share of Voith’s overall freshwater withdrawal. By contrast, the share of Chinese and Indonesian locations already accounts
for around a quarter of our total consumption. However, numerous measures havealready been implemented there, and the affected locations are now also subject toregular wastewater quality checks.
Continued Reduction in Wastewater
In parallel to our reduced freshwater withdrawal, we also generated less wastewaterin the reporting period. At 821,902 m³ the volume of wastewater we generated was
2.6 % lower than in the previous reporting period (844,126 m³). Around 49 % (previous
year: 38 %) was discharged into rivers, lakes, or the soil, while 52 % (previous year:
62 %) was discharged into the sewage system.
Fact base Wastewater by Method of Discharge and Quality

In the reporting year we updated our 2011 study on water scarcity, the findings ofwhich will feed into the planning of our future environmental goals. We utilize freely
accessible databases such as WBCSD’s Global Water Tool and WRI’s AQUEDUCT
when performing our analyses, retrieving all location-specific criteria offered by thetools. We factor in water quality and quantity criteria as well as regulatory frameworks.
We also expanded our scope of analyses to include locations in known water-stressregions.

We use recycled water in our processes wherever it is appropriate economically, environmentally, and socially. This includes cooling processes (São Paulo) and processes
in closed cooling water circuits (Garching, Summerville, Kunshan). We also operate
our own wastewater treatment plants at our locations in São Paulo, Garching, andWest Monroe. We work tirelessly to close water cycles wherever it makes economic
sense – something we have since achieved in most cases.

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In direct comparison to other industrial companies, our production processes
only have a minor impact on water. Therefore, we are rarely required to measurewater quality, with only a small number of locations required to take continuous orrepeated monitoring measurements. However, the overall burden of BOD, COD, TSS,
heavy metals, nitrogen, and phosphorus cannot be derived reliably owing to the low
sampling requirements. In the reporting period we identified that our West Monroe
location in the USA fell short of a BOD threshold value, so we took immediate steps
to correct the respective water treatment process.
Fact base Water and Neighboring Habitat Protection

Outlook
We intend to continue creating both environmental and economic added value throughour activities. With our targets on sustainable development up to the 2021 / 22 fiscal
year and beyond, we will continue on our successful path, for the benefit of both thecompany and the environment. By committing to our goal to become climate-neutral
by 2022 we have reemphasized just how seriously we are taking this aim. To this end,in the current fiscal year we will systematically evaluate the photovoltaic potential of
our locations and bring additional systems onstream.

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3_Employees
3.1 Employees – Our Aspiration, Our Responsibility
Voith’s greatest strength is our capable and motivated employees. We promote
diversity in our company, which enhances our creativity, innovation and productivity.
Our inclusive corporate culture is shaped by people from across the globe, whose
cultural backgrounds and experiences reflect the broad spectrum of our customers
around the world. Working in Voith’s inclusive corporate culture, our highly diverse
teams advance our innovative capabilities and generate new problem-solving expertise, enabling Voith to overcome even global challenges with confidence.
3.1.1 Voith as an Employer
At the end of the 2018 / 19 fiscal year the Voith Group’s workforce stood at 19,410(previous year: 19,535 employees), representing a year-on-year decrease of 0.6 %.
Around 56 % of our employees work in EMEA, 20 % in the Americas, and 17 % in the
APAC region. While employee numbers in Europe (+2.5 %) and Asia (+1.2 %) increasedslightly, a challenging market environment in the Americas meant we needed to reduce
our workforce there by 4.6 %.
Fact base Employee Structure

in such change, the HR strategy focuses on the areas of management competency
and cultural development.
At Voith, much of our HR activity is distributed across four regional HR Global Business
Service Centers. Bundling transactional processes and programs in these centerstargets a high level of service provision and additionally allows us to pursue our aimof identifying activities that can be performed better digitally or through automation.

Number of Employees
in individual people
19,26719,027

19,8412016 / 172017 / 18

2018 / 19

Fact base Employees by Employment TypeA Company Fit for the Future
In an age of digitalization and rapid change, Voith’s HR area has actively accepted
the task of supporting our company and its employees in shaping cross-company
collaboration in a future-oriented, change-ready way. Our newly designed HR strategy
is designed to realize this aspiration, covering, for example, the development of digitalskills and acquisition of new competencies that are vital in enabling us to meet theever more volatile and complex market requirements of our modern service-based
economy. This requires both individual and collective behavioral change – andtherefore also collective cultural development. Since executives play a pivotal role

The reporting year was dominated by further service quality optimization. The regional
HR Global Business Service Centers actively incorporated customer feedback in the
restructuring of their services. In addition, improvements were made to accessibility
and to target-group specific services.
An Attractive Working Environment
Voith enjoys an excellent reputation as an employer brand, as we combine the stabilityof a family company rich in tradition with the opportunities of a truly global player – one
which is having a considerable impact on shaping the digital transformation process

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in our industries. This is also repeatedly confirmed by external institutes, on ratings
portals, and in employer rankings. In this regard, the reporting year was no exception,with Voith featuring highly in Trendence und Universum rankings.
Fact base Voith in Selected Employer Rankings

Performance-based, Market-competitive Remuneration
Voith always aims to remunerate its employees in line with the market. We calculate
remuneration in a gender-neutral way and based exclusively on professional qualifications and performance. Remuneration schemes and other benefits are in line withthe prevailing market situation in each region. The analyses currently available to us,
especially for the core countries of Germany, the USA, China, and Brazil, confirm this.
At our German locations we routinely follow collective bargaining laws when setting
remuneration levels.

Diversity and Equal Opportunity
Our company’s international nature is also reflected in the structure of our workforce. Employees from 93 different nations work for Voith, while the Voith Senior
Management Circle also has an international composition, with 73 members fromten countries.
Voith deliberately promotes cultural diversity, thereby enhancing international collaboration at all levels of our company. In the fiscal year there were around 100
international secondments, enabling employees from different regions and of different nationalities to enrich their international careers. In order to further increase
mutual understanding, tolerance, and communication skills, we offer our employeesintercultural training and language courses.
Fact base Diversity in the Management Team and in the Workforce / Employment Ratio of People
with Disabilities

Fact base Expenditures for Employees

Our Global Job Grading project, which aims to establish a uniform job-evaluation
system at Voith, came to a successful conclusion in the reporting year. Global salarycomparisons are now possible thanks to this uniform Group-wide assessment of all
non-tariff positions, laying the foundation for fair and market-competitive remuneration.
Voith provides its employees with fair working conditions that comply with all statutory
requirements. We reject all forms of forced labor and child labor, and we do not
obstruct lawful employee representation. In the 2018 / 19 fiscal year 72 % of all Voith
employees worldwide were covered by a collective bargaining agreement. The dropin comparison to the previous year (81 %) was caused by changes to the structureof the organization, due for example to the acquisition of companies.
Fact base Details on Upholding Employee Rights

In October 2018 Voith signed the Diversity Charter, committing to create a working
environment free from prejudice and to promote a culture of appreciation and diversity
in the company. This aspiration is supported by our Diversity&Inclusion (D&I) program,which we introduced across our Group as early as 2012 / 13. We understand diversity
as recognizing and embracing the uniqueness of our employees in the aspects ofgender, age, nationality and ethnic origin, education and professional experience,as well as personal differences such as family status, social background, beliefs,
physical abilities or sexual identity. We understand inclusion as the aforementioned
culture of appreciation in which everyone is respectful towards one another. As aresult, everyone can develop their potential freely and contribute different perspectives,
ways of thinking, and approaches. We see respect as a prerequisite in enabling us
to offer solutions even to more complex requirements, to our customers around theworld on the basis of our employees’ rich and varied experience.

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Our D&I program requires all locations to introduce suitable measures in addition
to taking a systematic approach to raising employee awareness. The regions are
responsible for each focus area and implementation of the measures, while Group
Human Resources coordinates the program. This ensures that we take a uniform
approach across the Group, share best practice approaches, and also take into
account the highly varied challenges we face worldwide.
Clear Statement against Discrimination“As a company with a global reach, we work with employees and business partners of many different
nationalities, cultures and ways of thinking. We do not tolerate unequal treatment (discrimination),harassment or derogatory behavior in violation of the law. In particular, we do not tolerate discriminationon account of race, ethnic origin, gender identity, religion or worldview, political orientation, disability,
age, or sexual orientation.”

Our Compliance Committee monitors the implementation and enforcement of ourCode of Conduct, ensures rights and laws are always complied with, and that
employees’ rights are upheld globally.
Mandatory awareness workshops for the upper four – in many regions, five – management levels help to continuously raise awareness among managers throughout theGroup regarding D&I and draw attention to specific topics such as unconscious bias.
This ensures that our managers assign great importance to D&I topics. A toolkit,
available to managers in the Group’s D&I SharePoint, provides ideas for activities
and measures to make D&I part of daily working life and teamwork.
The toolkit also includes activities to help them reflect on their own management
style, while a mandatory training module on D&I was introduced for those taking up
management positions for the first time in all regions.

In the 2018 / 19 fiscal year, we held 14 training courses on the topic of D&I, with a totalof 181 participants from 25 countries. In addition, in the reporting period, optional
Awareness Workshops were made available to all employees in Europe. We also
keep our employees updated through our global communication initiatives, which
also include some interactive D&I campaigns, and make relevant information freely
available on our company website. To learn together with other companies and toshare experiences and best practices on the topic of D&I, we regularly take part inregional D&I network meetings and conferences.
As women are still underrepresented in technical apprenticeship occupations andhigher education courses, we are also focusing on this area and working to increase
the proportion of female employees further in our overall workforce. As at September
30, 2019, the proportion of women in the workforce remained unchanged at 18.3 %Around the world, we take a variety of measures to get girls and young women
more interested in technical professions. We have participated for many years now
in Girls’ Day and are involved in the initiative “Women in MINT Professions”, run by
the State Ministry of Baden-Wuerttemberg for Economic Affairs, Labor and Housing
Construction. This initiative aims to encourage more girls and women to take up
MINT professions, as well as to increase career opportunities for women, including
those returning to work.
Increasing the proportion of female managers in the company is particularly important
to us. In the Voith Senior Management Circle, the proportion of women currently
stands at 8.2 % (previous year: 6.8 %). In our middle management circle, the proportion of female employees has risen to 12.4 % (previous year: 11.8 %). We are wellaware of the need to take further action in this respect. This is why we have initiateda range of measures, such as a mentoring program for women and the Women
Networking Day in China: Alongside our D&I program activities, in future this will serve
to attract more women to management positions.

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Council to introduce part-time training leave in the company. In an “active” phase,
this allows employees to work for reduced remuneration. In a following “passive”
phase, employees can utilize the time available for vocational training and continue
to be remunerated.

Percentage of Women by Management Levelin %Management Level 1–2
Management Level 3–4
Management Level 5
All employees
Only new recruits

6.8
6.8

2018 / 192017 / 18

8.2

8.2
11.8

12.4
18.3
18.3
20.7
19.0

Fact base Parental Leave

Employee Satisfaction
We always keep a close eye on our employees’ satisfaction. Our employee turnoverrate fell in the reporting period to 9.9 % (previous year: 10.3 %). 3.9 % of this rate
(previous year: 4.3 %) is due to employees terminating the employment relationship.
As part of exit interviews we ask them why they are leaving Voith, and evaluate thisfeedback to identify potentials for improvement.
Fact base Employment Length

Balancing Work and Private LifeAt Voith we see ourselves as a family-friendly company – an understanding that isembedded in our Group-wide guidelines to provide a flexible and family-conscious
work culture. Through ongoing communication measures, we work to increase ourmanagers’ openness to this issue. After all, our stated goal is to offer our employees
an attractive working environment. This also includes flexible working models to help
our people meet ever-changing personal life circumstances.
Fact base Flexible Working Models

61 % of our employees – the majority of Voith’s workforce – are able to organize theirworking time flexibly to a great extent. In consultation with their supervisors, manyof our employees can agree personal working time models, ranging from the use of
flextime, through to part-time work, job sharing, sabbaticals and mobile working. In
Germany, for example, release from work for training is governed by collective agreements. In connection with this, in 2018 an agreement was reached with the Works

Fact base Employee Turnover

3.1.2 Attracting and Promoting Talent
The competition for suitably qualified employees is getting tougher in many areas, andwe constantly face the challenge of attracting qualified employees at all our locations.
A differentiated approach in our HR marketing activities is intended to make our efforts
in this area even more successful.
Interested parties and applicants can find out more about the company and opportunities with Voith on our website. We increasingly employ social media recruitment
campaigns as part of our HR marketing activities. Using social networks enables us
to specifically target interested candidates. Online advertising campaigns are also agood way to gain broad reach and raise awareness.
We continue to face particular recruiting challenges in the Field Service area owing todemographic changes, particularly in Europe, as well as the changing requirements

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4_Products and Supply Chainof potential applicants in relation to their work activities. We continue to develop new
solutions and measures to meet these challenges.

As part of our efforts to strengthen the skills of employees recruited to the Field
Service area, all technical apprentices now complete at least one placement in Field
Service.

Fact base New Hirings

High Aspiration – High Level of Training
By tradition we are committed to providing world-class vocational training. Our commitment has remained steadfast for over 100 years. Interdisciplinary learning andthe integrated provision of social and specialist expertise are high on the agenda.
Furthermore, we typically take on our apprentices on completion of their vocational
training, and offer them the opportunity to get their foot on the career ladder in ourcompany.
Voith trains employees around the world. To do so, we utilize our own Training Centers
in Heidenheim and Kunshan (China). Our international locations also deliver vocational
training that, while based on the German dual-study system, also incorporates culturaland country-specific considerations. The success of this approach is illustrated byour experiences at our São Paulo (Brazil) location, where we have been training
young people for many years. In collaboration with local training institutes, we havedeveloped a training model for a typical two-year apprenticeship aimed at young
people from around the age of 15. This approach regularly produces exceptionallywell qualified new technical talent.
As at the end of the 2018 / 19 fiscal year, Voith employed 838 apprentices andstudents (previous year: 801). 534 (previous year: 519) of our apprentices work inGermany, over half of whom work in Heidenheim (326; previous year: 302). While we
expect the number of apprentices to remain at a similarly high level in Germany, we
forecast a shift towards dual-study programs.
Fact base Apprenticeships and Opportunities

Our Social Internship program, launched in 2017, was continued in the reportingyear. As part of this, all apprentices in their second year of vocational training spend
one week at a sheltered workshop for the disabled. In return, disabled employees
from the workshop visit the Voith Training Center, where they complete a multi-leveloccupational safety training program. In addition, apprentices accompanied by trainers
helped to build a training workshop in Nepal.
A team made up of apprentices, dual-study and Special Vocational College students
proved successful in the Germany-wide “Diversity Challenge” competition. The Voith
team was commended for its engagement with diversity in the workplace.
Advancing digitalization is also bringing lasting change to vocational training requirements. In Germany we are meeting this challenge at various levels. One focus is
the development of interdisciplinary competencies such as additive manufacturing
processes using 3D printers.
Lifelong Learning – Both a Right and a Commitment
In times of dynamic change driven by technological progress, we expect ouremployees to be committed to lifelong learning. This is why we support them with acomprehensive range of training and education measures. Our leadership concept sets
out the framework for this, with numerous management tools. A performance objective
meeting is held at the start of the fiscal year between every employee and their supervisor to discuss and set the individual’s contribution to achieving our corporate goals.

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The employee appraisal focuses on work activities and the working environment, therelationship between the employee and supervisor, and the employee’s own personal
development perspectives. The outcome of these meetings is entered in our pep. HR
IT system, together with findings of the Management Review process. This approachmeans we are always aware of our employees’ training requirements, and can tailor
our offerings and initiate personal development measures accordingly.
In the reporting period 92.1 % (previous year: 91.4 %) of Voith employees took part inan employee-supervisor appraisal. In doing so we reached all employees who were notprevented by sickness, on parental leave, or who were exempted from the appraisals
as they were about to take on new functions. Over the course of the next few years
we plan to further stabilize the high level we have already achieved.

Hours of Further Education
320,324
266,959
243,304

2016 / 172017 / 18

2018 / 19

Fact base Training and Education & Career Development

The development of our executives is of great significance within the overall strategy
of our training and education measures. Special development programs establish a
uniform understanding of management within the company across Group Divisions
and regions. These programs are mandatory for all executives with supervisory roles.
Since 2018 our DRIVE platform has given all our employees the opportunity to gain
an understanding of digitalization in a hands-on, playful way. This allows them toacquire basic digital skills, enabling them to develop a digital mindset that they can
put to use in the organization. We are also promoting topics such as agile working atVoith, especially in project management where we are introducing approaches suchas scrum wherever appropriate. All these measures are progressively increasing digital
expertise within our organization and making Voith fit for the future.

Regarding professional competence, Voith offers a comprehensive range of training
programs in the areas of leadership, social and methodological skills and specialist
knowledge. At the Voith Academy, for example, executives from around the worldcome together to gain Voith-specific knowledge and to share their views on leadershipissues with colleagues. We offer functional training models for sales and productmanagement as well as programs for specific Group Divisions such as PaperSchool.
Using a train-the-trainer format, we achieve a high level of internal participation in
knowledge transfer. Our training offer encompasses the whole spectrum of formats,from classroom to e-learning.
In the 2018 / 19 fiscal year our employees completed an average of 12.3 hours of
training and further education (previous year: 14.0). We are working tirelessly to
improve our training program, which is why we ask participants about their experiences

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after each training course, and provide the findings to the trainers and the HR area.
In addition, the supervisor’s assessment is obtained as an appropriate means toassess the success of a measure.
OutlookConsistently attracting the right number of well-qualified employees and retaining
them in the company will remain the key challenge for our HR work at Voith. At thesame time, employees still need to be prepared for the increasingly digital world ofwork and supported in their development. As familiar qualification measures alone
are no longer enough, our goal now is to create a culture of agility and a willingness
to embrace change through a systematic approach to change management. This is
why we will offer an increasing number of training courses to enable our employees
to easily find their footing in the digital world. With this approach we are already laying
the basis today for our future success.
3.1.3 Occupational Health and Safety
Occupational health and safety take top priority at Voith. By taking a responsible
approach when designing workplaces and processes, we work to prevent accidents
and work-related illnesses as far as we can. Our established HSE (Health, Safety,
Environment) organization provides the best basis for this. In addition, our systematic
approach to implementing our Shared Services structure ensures that individual
locations and regions receive the most comprehensive support possible. To reach ourinternal customers even better, in the reporting year we converted the organization
to a decentralized structure. This will not only improve our on-site presence, but will
also enable us to provide specialist support with a more intensive focus on products.
We have implemented corresponding processes to identify occupational health andsafety hazards and risks. These are transparent to everyone involved, all information
can be accessed within one system, and lessons learned can be shared between
business areas.
Fact base Approach to Preventing or Dealing with Negative Health and Safety Impacts

A Group Directive sets out the requirements and responsibilities for effective
occupational health and safety, and lays down binding minimum requirements andstandards for the Group. It also includes all standard operating procedures (SOPs)
on HSE at Voith. In principle, while all locations are covered by this Directive, themore stringent provision in each case always applies when reconciling the regulations
with regional requirements. As a third step, customer agreements are binding if they
impose stricter or more specific requirements. All Group Directives are currently being
reviewed and amended where necessary to ensure that their contents are up to dateand consistent with the new organizational structure.
For several years now Voith has been using our Group-wide hse+ IT system tomanage HSE. The system is now increasingly being used by our smaller organizational
units. As a fundamental principle we attach great importance to the early involvementof Data Protection Officers in all issues relating to HSE reporting, controlling, andcommunication. All occupational health and safety policies are accessible globally via
this system, just like our environmental protection regulations. Moreover, the majority
of countries can enter relevant laws and regulations directly in the system and assign
the resulting responsibilities to those accountable.
We launched a new “Environmental Risk Assessment” tool in 2019, in parallel to therisk assessments for people, activities and business areas. This allows the diverse
hazards at our locations to be identified objectively and documented appropriately.
As with the other risk assessments, actions can be assigned and their implementation
tracked.
We are also well prepared for the upcoming transition from OHSAS 18001 to ISO
45001. For example, thanks to ongoing improvements in the reporting year the numberof identified nonconformities further increased, laying a key basis for a successful
migration.
Fact base Certifications

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Joining Forces with Employee Representatives
Company agreements on occupational health and safety, as well as on preventing addiction, complement the regulations embedded in our HSE Group Directive. A monthly
Safety Committee Meeting brings together all employee and employer representatives
at each production location to develop the annual occupational safety program andimplement it in monthly actions.
Fact base Employee Representation in Committees

Occupational Safety
In 2009 we anchored accident frequency and severity reduction in our corporate
goals. Over the past few years we have made constant improvements in this area,
making Voith one of the world’s leading companies – across all industrial sectors – in
occupational safety.
This is confirmed by the Accident Frequency Rate (the number of notifiable accidents
per 1 million working hours), which we calculate according to the international standard. We reduced our AFR very significantly from 12.6 in the 2008 / 09 fiscal year to
1.5 in the reporting year (previous year: 1.5). This corresponds to 54 notifiable accidents (previous year: 52) – still a particularly low figure compared to other industries.
By comparison, the average AFR of companies in the Professional Association of Plant
and Mechanical Engineering is 22. However, in the reporting year we again suffered anincrease in the Accident Severity Rate (ASR): With 364 working hours lost per million
in the reporting year (previous year: 342), the previous year’s value was exceeded
once again. There were no fatal occupational accidents in the reporting year.
Fact base Occupational Accidents

Frequency Rate

Severity Rate

specific figure in accidents
per 1 million working hours

specific figure in lost hours
per 1 million working hours

342
1.4

1.5

1.5

Number accidents

364

271

Number lost hours
13,228
12,16952

2016 / 172017 / 189,5092018 / 192016 / 172017 / 18

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Extensive Occupational Safety Program
Our occupational safety program fundamentally includes every employee. We also
involve service providers in occupational safety activities through our “Coordinationof Visitors and Contractors” Occupational Safety Directive.
Executives with supervisory roles have a particular responsibility in this regard: They
are responsible for risk assessments, as nobody knows the technical requirementsor the level of education and experience of their employees better than they do.
Furthermore, executives have a clear duty to ensure that information and targets arecascaded as prescribed, from the Board of Management, through the respective
executives, all the way to shop floor level. Employee training and the active communication of key developments also fall within their area of responsibility. Employees
must be given documented instruction at least once a year, with centrally prescribedtraining documents supporting this process. To lend a helping hand, our health andsafety specialists provide assistance with queries on using our hse+ software as wellas with other HSE-specific enquiries.
Besides annual instruction, brief summaries are published regularly, sometimes
even daily, on HSE issues, and information sheets are made available on selected
topics. This system of repeated instruction and information has proved successful
in raising employee awareness for the long term. For example, in the reporting year
we produced and sent specific information on the operation of work equipment suchas cranes. We also addressed other topics such as hand injuries, and approachedthese by means of a poster campaign.
We continue to work intensively on using our HSE software for online instruction, eventhough we in no way see this additional medium as a replacement for supervisor-led,face-to-face instruction. Individual business areas are also increasingly switchingover to the online delivery of training courses tailored specifically to their needs,some of which they have developed themselves. Online training courses have proved
particularly effective in communicating information globally and in a timely manner toboth office-based and Field Service staff.
We raise our production employees’ awareness through short, high-impact information sessions. Beyond the annual instruction we provide, these five- to ten-minutepresentations on current topics keep aspects of occupational safety firmly in employees’
minds as they carry out their daily work. In some cases, employees are involved
directly in these presentations – if they are involved in a private or voluntary capacity
in the Fire Service, for instance, meaning they are highly credible when presenting
fire safety topics.
We document instruction sessions that are required by law. Here too, we are increasingly providing them as online tutorials – especially since pilot projects have met with apositive response in recent years. We will therefore progressively start offering online
tutorials on various topics via our hse+ software, with our initial focus areas being
decentralized organizations such as site construction, service and sales employees,
and administration.
We place particular emphasis on training our experts in the regional HSE organization.
They have already been rigorously trained on the use of hse+: We have used this online
system at Voith since the 2015 / 16 fiscal year to display information globally, uniformly,
and transparently on audit planning and audit results, as well as key information on
hazardous materials, compliance, and risk assessments. Over the next two years
we plan to make sure our people worldwide use as many hse+ modules as possible
and just as intensively. Furthermore, we intend to further expand the documentationand follow-up of measures derived.
Fact base Occupational Safety Training

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Special Responsibility with Field Service
When on construction sites or service calls, Voith Field Service employees takeresponsibility for occupational safety and environmental protection in a wide variety
of ways – whether as supervisors without authority over other service providers,
right through to taking full construction-site responsibility that includes authority oversubcontractors. Due to the organizational reclassification of the HSE experts into
the Group Divisions, the cross-divisional working group “HSE in Field Service” wasdisbanded. The corresponding topics are now once again handled by the specificGroup Divisions.

This allows us to raise our employees’ awareness of unsafe actions and situations
before accidents occur. In addition, increased data quality across sectors andcountries makes even more targeted prevention work possible.

Documenting, Analyzing, and Preventing Accidents
At Voith we record all accidents centrally to ensure that the direct supervisor is reliably
informed and that the notifications can be published on the intranet. This also ensuresthat the Corporate Board of Management is informed within 24 hours in the eventof serious incidents. Investigation teams, comprising stakeholders, supervisors, andsafety experts, review and document the accidents. Especially serious accidents
are examined separately once again at our Center of Competence HSE. A detailed
description of accident definitions is given in our Group Manual; these are thenpresented in a way that makes them comparable internationally with other companies.

Using accident analyses, audits, and other measures we make sure we are always
up to date in terms of HSE, and can take immediate action in response to serious accidents, or if specific accident types occur frequently. Our global HSE Flash News on
the accident / incident focus areas in occupational health and safety and environmental
protection enables us to inform the affected employees immediately and directly.

On the basis of analyses carried out in the previous year, we were able to improve
the quality of incident investigations in the 2018 / 19 fiscal year. Unsafe situations andthe potential influence of the respective managers were also scrutinized. The corresponding findings contributed to the newly-developed occupational safety training
course for managers. Voith’s own eVAP app involves employees actively in accident
prevention. It enables them to log potential accident causes quickly and easily on
the spot, and then sends this information to a central database. Clear icons facilitate
the entire user interaction within the app. The data is analyzed automatically andthen published in target group-specific media along with corresponding instructions.

Usage of the app shows a positive trend. Our HSE experts received an average of
423 reports each month in the 2018 / 19 fiscal year, around 20 % more than in theprevious year. Following the Group-wide roll-out of eVAP we are now in the processof adding further smaller app modules. Our aim is to achieve further improvementsin the number of audits performed, as well as in terms of the quality of the content.

Routine Communication on Safety Matters
We employ several communication channels to keep every employee across ourGroup updated on changes and developments. Besides fortnightly conference calls,
the Safety Steering Team also meets annually in two regions, ensuring a rigorous
internal and external information exchange and discussion. Safety matters also playa central role in the meetings of the newly-created HSE Quality Board.
Following this, meetings are held at a regional level to communicate the points
discussed. In turn, this information is then shared with the individual locations in themonthly occupational safety working groups. The local experts are also responsible
for translating the guidelines and standards into their respective languages. Centrally
produced publications, such as the regular HSE and EBM Newsletters, complement
our information offering.

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Outlook
We intend to maintain this high level of occupational safety, with our hse+ IT platformplaying a key role. It enables us to further improve the transparency of our actions andto implement measures in a more targeted way. In the current fiscal year, together withthe suppliers of the software we will continue working towards establishing a uniform
quality level throughout the Group. To achieve this, we will roll out the same modules
globally and, in conjunction with employee motivation measures, make rigorous use of
these modules. Once again, our activities will focus on crane operation, as accident
statistics show a clear need for a greater provision of information in this area.
Occupational Health
Regardless of where our employees work, we want them to stay fit for work and retire
healthy at the end of their professional lives. From our analyses we know that thestatutory frameworks and cultural differences in the respective countries also requiredifferent emphases within occupational health management. This is why we pursue
a consistent, region-specific approach to occupational health protection in which our
fledgling Group Division Voith Digital Ventures is fully integrated.
In the reporting year we continued to work on focus areas. To assist with these
activities we conducted a pilot project on the topic of health management in our Group
Division Voith Turbo at five locations in Germany. The project covered sick-leaveanalyses, company inspections, structural analyses, and employee surveys as part of
one-to-one interviews and group workshops. The objective was to identify factors thathave a positive or negative impact on motivation. Based on these, location-specificand additionally Group-wide guidelines were developed in parallel in seven specificfields of action. The workplaces we examined were found to be ergonomically wellequipped, with a prevailing climate of partnership and cooperation in their teams. Our
next step is to develop and establish an overarching health management organization
prior to defining specific activities for each of these fields of action. We are also
focusing on communication between individual teams as well as between managers
and employees. Here, it is particularly important to create a deeper understanding of their respective performance indicators and to work towards the creation ofan error management culture. To continue driving these topics forward, we haveestablished health working groups comprising management, HR, Occupational Healthand Occupational Safety representatives. At a higher level there is a central steeringgroup with representatives from Occupational Health and HR, which acts as a providerof stimuli and builds a network between the Health working groups at our locations.
Illness and Stress Support
For the reporting period we are pleased to announce that we achieved further improvements in occupational medical care at our German locations. Thanks to ourcooperation with an external service provider, our employees in Germany can obtain
information and support relating to the care of family members and childcare. We
are currently continuing to work on establishing robust illness and stress-support
processes at our locations. Once this is done we will, as far as permissible underdata-protection legislation, roll out a central reporting system on this topic.

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4_Products and Supply Chain
4.1 Product Responsibility
4.1.1 Management Approach
Voith products and industrial services serve five major markets around the world:
Energy, Oil & Gas, Paper, Raw Materials, and Transport & Automotive. As thesemarkets impose wide-ranging requirements on our company, we ensure our solutions
are just as varied to meet them.
Our Responsibility – Our Fields of Action
Given the diversity of our product portfolio and the very different market requirements
we face, our Group Divisions are confronted with a broad spectrum of challenges
regarding product responsibility. To identify these demands systematically and evaluate them in terms of their materiality, we draw on the results of our stakeholder surveyof early 2016. We also evaluated external benchmarks, including those of the IÖW(German Institute for Ecological Economy Research) and ISS ESG.
In conjunction with our Group Divisions’ evaluations and assessments, we defined
the material fields of action for our company with regard to product responsibility as
follows:• Quality and reliability of our products and services• Guarantee of maximum product safety• Long service life of products• Technological expertise and innovation• Customer dialog and cooperation• Product resource efficiency• Minimizing products’ environmental impacts.
Foresight Project Successfully Completed
We always aim to be prepared to meet long-term challenges and trends, and toharness growth opportunities. To this end, in 2017 we launched the Technology

Foresight project. This was successfully completed in the reporting period in all Group
Divisions. Led by the Divisions’ respective Chief Technology Officers (CTOs), we
developed future scenarios for water, paper, mobility, and the environment extending right through to 2040. Key technologies and potential business segments wereidentified and prioritized. Gap analyses subsequently provided the foundation for theformulation of specific technological goals. These were converted into technology
roadmaps that led to specific development projects.
In this process, the megatrends of decarbonization, digitalization, and the circular
economy play a central role, shaping the future scenarios derived in each of the Group
Divisions and then feeding into each Division’s definition of its strategic objectives.
Megatrend Decarbonization: Voith wants to contribute to decarbonization andthe achievement of the Paris Climate Agreement goals. To this end, we continue
to rely on promoting hydropower as a renewable energy source, to deliver paper
production facilities that make efficient use of resources, and to work on systematic
drivetrain electrification as well as alternative drives to facilitate eco-friendly mobility.
• Megatrend Digitalization: Voith intends to capitalize on digitalization as an opportunity, and combine our longstanding automation and IT expertise with hydropower, paper-machine, and drive technology know-how. In our core business wedevelop customer-oriented solutions that drive forward digital transformation in
key global industries.
• M egatrend Circular Economy: We will drive innovation that contributes to closing
cycles in our industries, thus promoting the principle of the Circular Economy.
Selected findings of the Foresight project are outlined in this report, in the section
headed “Product Responsibility by Group Division”. In future, the scenarios are to
be regularly reviewed and adjusted as necessary. In addition, the scenarios, operational objectives, and key indicators developed within the project will be leveraged
in an ongoing, uniform, company-wide Foresight process.
•41

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Research and Development
Our success largely hinges on our technological expertise and our ability to constantly
apply our know-how in innovations that generate added value for our customers.
This is why research and development (R&D) has traditionally been a high priority atVoith, and why we continuously invest in our future: In total, over the last five years weinvested over € 1 billion in R&D activities, including € 213 million in the reporting year
(previous year: € 222 million). At 5.0 %, the share of our Group’s sales dedicated to
R&D was slightly below the previous year’s level (5.3 %). Voith holds several thousand
active patents around the world, with hundreds of new ones added to our portfolio
in the reporting year.
Annual Report 2018 / 2019 p. 24 f.
Fact base R&D Expenditure

Collaboration Projects with External Partners
Voith’s Group Divisions are market and technology leaders in many business segments. For this reason they are in constant dialog with research institutes, universities,
associations, and other companies along the supply chain. Here too, sustainability
issues play an ever more prominent role.
The Group Division Voith Hydro is working with Siemens on the development of hybrid
power concepts, for instance. The goal is to be able to advise customers in an earlyphase of projects on the cost-effectiveness of a power plant fleet consisting of wind,solar, biomass, battery-storage and hydropower plants. Working with the Leibniz
University of Hanover (LUH), Voith Hydro conducted experimental and theoreticalstudies on loss mechanisms in an independently excited hydropower generator. For
research purposes, Voith Hydro provided the university with a realistic model of ahydropower generator. In addition, Voith Hydro is participating in various EU projects,

such as with FIThydro on the development of technologies to improve permeability
and therefore the chances of survival for fish in hydropower plants. Voith Hydro also
works as a consortium member in the EU project XFLEX HYDRO, which aims to makebetter use of the flexibility of hydropower to help integrate wind and solar power into
the European power system, and to further advance decarbonization by increasing
the efficiency of hydropower plants.
The Group Division Voith Paper is currently in dialog with 45 universities, associations
and companies, and working on specific projects with almost half of these partners.
Collaboration with external partners is very helpful, particularly in areas where fundamental knowledge has to be created at the outset. This applies to customers and otherpartners along the Paper value chain as well as to universities. An example is Voith
Paper’s commitment to the model paper factory, a consortium project dedicated toresearching and rolling out CO2-neutral paper production. Voith Paper is also activein the Energy Solutions Forum of the Confederation of European Paper Industries(CEPI), and is a partner in the Matlam / Celuwiz project at the Centre Technique duPapier in Grenoble, France, developing fiber-based solutions for biodegradable barrier
packaging.
The Group Division Voith Turbo has expanded its collaborations. In the area of
e-mobility, the Division is already working with various universities, such as the Munich
University of Technology and RWTH Aachen University, aiming to further increase thecompetitiveness of low-emission drives. In collaboration with the Fraunhofer Institute,
Voith Turbo is additionally working on the development of sensor technology for
non-contact temperature measurement in rotating systems to ensure optimal andproblem-free operation of hydrodynamic couplings. Voith Turbo is also working
with Clausthal University of Technology on the development of low-loss bearings
to increase efficiency and save energy, while its collaboration with Ulm University is
focused on the “Range Extender for Battery-operated Electric Vehicles”.

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4_Products and Supply Chain

Customer Dialog
Maintaining close customer relationships and a deep understanding of customers’
needs has always been one of Voith’s strengths. All divisions are in constant contact
with their customers, and they are also included in Foresight-related activities andtrend analyses. This contact also includes targeted surveys, for instance on customer
satisfaction or future requirements on our products’ capabilities. At the same time,
digitalization is playing an increasingly important role in our Group Divisions’ customer
communication activities. In this regard, we aim to improve both our own and ourcustomers’ understanding of digitalization in equal measure, and in doing so give ourcustomers the edge through increased interconnectivity and the intelligent combination of industry know-how with analysis and IT expertise.
An example: Resource savings, whether in terms of fibers and other raw materials,
water, wastewater, or energy, are central topics within Voith Paper’s customer dialog
activities. In addition, an ever-increasing number of customers ask us for detailed
information such as on individual materials used in the product manufacturing process.
And from a consumer perspective, environmentally friendly packaging, in which forexample more paper is used than plastic, matters a great deal. This also influences
the requirements on paper production. Voith Paper employs the Net Promoter Score(NPS) methodology to measure customer satisfaction.
4.1.2 Reliable and Safe Products
Voith is renowned the world over for the safety, quality, and reliability of its products.
We are fully aware of the value of this important competitive advantage, so we haveset out the principles of our quality and technical risk management processes inGroup Directives. Our Group Divisions and their companies then expand on theseprinciples and supplement them accordingly.
In this way, the bases of the Voith Paper quality management system are set out
in guidelines, process descriptions, and work instructions. Necessary reviews andcorresponding documentation are controlled via internal ERP (enterprise resource

planning) systems. Potential health, safety, and environment impacts are taken fully
into consideration. Various tools such as Ishikawa, FMEA (failure mode effect analysis),and A3 or 8D reports are used to continuously improve the processes.
We document and certify our activities according to the international ISO 9001, IATF
16949, and ISO / TS 22163 quality management standards, as well as ISO 14001 forenvironmental protection and ISO 45001 (formerly OHSAS 18001) for occupationalsafety; we also supplement these with many of our own QM methods. Virtually all
Voith locations are certified to at least one of these standards.
With the help of clearly defined project scopes, a Group-wide Quality Excellence
initiative places an even stronger focus on the quality of our products and processes.
The aim here is to continuously improve quality while reducing associated costs. To
achieve this we focus on four core projects: Quality-cost Transparency, Problemsolving Methods, Continuous Improvement Processes, and Quality in Engineering.
Uniform KPIs across the Group enable benchmarking within both the company andthe relevant industrial sectors. The corresponding performance indicators are regularly
reported to the Corporate Board of Management. The high level of importance placedon Quality by all Voith business areas is again underlined by the establishment of the
new Quality and HSE / Sustainability Board.
EU Directives Define Minimum Requirements
Voith products always meet the statutory and regulatory requirements of the countries
we supply. EU directives, such as Machinery Directive 2006 / 42 / EG, form the basis
for the minimum requirements for product safety worldwide. Our Group Divisions are
responsible for implementation, while the relevant Quality Assurance Departments
ensure process compliance.
Our quality management system also defines how to fulfill the respective statutory
product documentation requirements, and how products are to be labeled. Besides

43

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4_Products and Supply Chaininternal technical documentation, operating instructions provide information on
the intended use of our products and on how to handle them in a technically andenvironmentally safe way. Our quality management system also outlines proceduresfor decisions that entail risks.
We regularly train employees on how to handle the corresponding regulations, andmake these available to them via our Group-wide databases and internal communication channels. In addition, we provide our customers with the relevant know-how
through training courses held either at our training center or directly onsite at ourcustomers’ locations. For example, Voith Hydro employees receive regular training
in applying the relevant regulations, available to them via our Group-wide databaseand internal communication channels. Furthermore, as part of the Voith HydroSchool,
Voith Hydro provides its customers with the relevant know-how, either at its own
training center or directly on the customers’ premises.
At Voith Turbo too, all employees are also trained on quality issues and ensure
learnings are thoroughly implemented. Several quality programs are currently runningin this Division to increase product and service reliability even further throughout the
lifecycle. At the same time, Voith Turbo consistently seeks a close relationship withcustomers to allow experiences from daily system operation to be incorporated into
its product development activities.
We evaluate the effectiveness of our quality assurance measures in our respective
Group Divisions using division-specific KPIs as well as internal and external audits;
our suppliers are also closely involved in these activities.
A key quality of Voith machines and systems is their long service life, which is why
Voith Turbo gear systems and Voith Hydro turbines have been in reliable operation
at hydropower plants for decades. Our paper machines have a similarly impressive
track record. Because of this, our Group Divisions are committed to supplying spareparts even after many decades of operation. Providing customer-oriented service wellinto the future is a key requirement we factor in, right from the development stage.
Furthermore, Voith engineers are constantly tasked with supplying spare parts forthird-party components – such as for transmission units produced by competitors thatare no longer active in the market – to enable our customers to continue operating
a full system.
Fact base Nanotechnology
Fact base Approach to Handling and Eliminating Suspicious and Hazardous Materials

4.1.3 Product Responsibility by Group Division
By constantly further developing our products we aim to make them more environmentally and resource-friendly throughout their lifecycle. In doing so, we meet
our customers’ demands, statutory requirements, and last but not least our own
aspiration. The primary aim of all Group Divisions is therefore to conserve resources
and to minimize the environmental impact of our products. To achieve this we follow
a decentralized management approach.
We predominantly supply components that, as part of an overall system, have differing
energy and material footprints. We employ a range of tools to gain an even moredetailed picture of our products’ energy and raw-material efficiency: Among these,
we have conducted product Life Cycle Assessments (LCAs) for many years now inaccordance with ISO 14040 and 14044. However, as Voith products are often notserially produced, LCAs are not carried out for every product. With projects, as amatter of principle the respective sustainability impacts are critically analyzed as partof the internal risk assessment before the submission of tenders. We expect a further
tightening of environmental protection legislation for all Group Divisions as well asa continual rise in customer demands regarding the environmental and resource
efficiency of our products.

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With our broad product portfolio and our active role in a variety of markets, weconstantly face the challenge of producing a balanced account of our activities in a
uniform, standardized report that covers all Group Divisions. By way of example, inthe following we have outlined the lifecycle of a main product of each Group Divisionthat also shows its environmental and social impact.
Voith Hydro
The Group Division Voith Hydro develops customized, long-term solutions and services
for hydropower plants across the globe. Its broad portfolio of products and services
covers the entire lifecycle and all essential components of hydropower plants of any
size – from generators, turbines, pumps, and automation systems to spare parts,
maintenance and training services, and digital solutions for intelligent hydropower
plants.

Product Group

Share of Revenue ofGroup Division (%)

Life Cycle of a Hydropower Plant and the Contributionof Voith Hydro Components

1.

2.

3.

1. Planning Phase / Supply chain•

Environmental and social acceptability checks•

Stakeholder engagement•

Reduction of supply chain risks (see GPC and CoC)

Components for large hydro (including refurbishments)

57 %Components for small hydro (including refurbishments)

18 %

•

Management of social and environmental aspects

HyService

15 %•High global safety and quality standards

Automation (including digital products)

10 %

•

Technical customer training courses on optimal environmental and economic operation

2. Creation (Hydropower Plant Construction Phase)(HydroSchool)

Targeting Minimal Environmental Impact
Voith technologies play a decisive role in minimizing the environmental impact ofhydropower plants – from improving water quality through aerating turbines, andoil-free hubs that prevent water contamination, through to innovative runners that
improve fish passage through rotors. Voith Hydro also works tirelessly to further
minimize the remaining environmental impacts.
Voith Hydro also aims to install new hydropower plants at existing dams and weirs
to generate renewable energy growth without further environmental impact on the

3. Utilization Phase (Electricity Generation) – VH Products / Services Can Improve:•

Efficiency and durability•

Operation and cost-effectiveness•

Environmental impact and integration of renewable energy sources into the grid•

Extension of the use phase by modernizing the equipment

4. End-of-Life•

High proportion of reused products

4.

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immediate surroundings. Using our StreamDiver solution, small-scale hydropower
plants can be installed at existing irrigation dams even where strict environmental
regulations apply. Protecting the environment is also increasing public acceptance ofhydropower, resulting in reduced implementation times for new plants and modernization projects.
Fact base Further Information on Social and Environmental Impacts – Voith Hydro

Hydropower – Renewable Energy Source par Excellence
Voith Hydro is active in hydropower, the largest renewable energy source for power
generation worldwide. As a proven, mature, predictable and competitive technology,
it combines an unrivalled level of efficiency with an extremely long and reliable plant
service life as well as low CO2 emissions.
The significance of hydropower can be demonstrated by the commonly-used energy
indicators Energy Payback Ratio (EPR) and Energy Return on Investment (EROI).
These are calculated by dividing the electricity output during the normal service life of asystem by the energy required for its construction, maintenance and operation. A high
EPR is an indicator of a highly energy-efficient system. Scoring 267 (for run-of-river
plants) and 205 (for storage plants), hydropower has the highest EPR of all methodsof power generation. In comparison, fossil fuels achieve a value between 3 and 11,
large wind farms 39, and nuclear power a value of 16.
Voith Hydro’s product portfolio makes a significant contribution to further strengthening the role of hydropower in energy system transformation. An example of this isa large order which we won in Australia in 2019, to supply innovative components
for the pumped storage power plant Snowy 2.0. This storage power plant is among
the ten largest energy storage systems of its type worldwide and is systemicallyimportant for the future of renewable energies in Australia. With an order volume in
the mid-triple digit million range, this once more underlines Voith’s market leadershipin the large hydro sector. At the same time, it marks a further milestone on Australia’sroad to complete coverage of its power requirements by electricity from renewableenergy sources.
Energy Efficiency
While energy consumption is an important cost factor in hydropower generation, it isof fairly minor significance when these plants are in operation. However, the generation efficiency of our plants is the dominant criterion in our customers’ evaluation
process. As a result, the continuous optimization of energy efficiency is essential toensure our products remain competitive. To this end, Voith operates test stands in
the Brunnenmühle in Heidenheim; these are among the best of their type worldwide.
At the same time, Voith Hydro’s development teams have access to state-of-the-art
supercomputers, enabling them to carry out advance development at the highest level.
Greenhouse Gas Emissions
As essential components of hydropower plants, our products help to cut greenhousegas emissions. An analysis currently underway aims to show how large our contribution is here. Important insights were also delivered by a Life Cycle Analysis of scalable
StreamDiver hydropower applications, carried out in 2018 as part of a Master’s thesis.
This focused on the CO 2 footprint of the hydropower applications, with all phases
included in the product lifecycle. One of the findings shows that with values between
2 and 10 g CO2e / kWh the greenhouse gas emissions of StreamDiver applications
are very low.
Resource Efficiency
Material efficiency is a direct component of the development objectives in the Group
Division Voith Hydro. By means of the latest calculation methods, we ensure thatsafety and function are always safeguarded when optimization measures are carriedout. To further limit our environmental impacts we aim to switch over our production
to using environmentally friendly materials wherever this looks technically feasible.

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As a basic principle, right from the plant configuration and design phase, care is taken
to ensure that recyclable or biodegradable materials are used.
In order to raise resource efficiency in construction even further, our Group Division
Voith Hydro will in future employ an increasing number of modular mechanical engineering models as well as the targeted use of components constructed for andproven in earlier projects. The costs of product design, procurement and production
are reduced through the “repeat effect”. Reducing mechanical engineering complexity
leads to a better focused use of materials and thus to greater material efficiency.
Through this new mechanical engineering approach, business processes relating to
product responsibility also need to be adapted. The objective of the new processes isto react significantly earlier to project-related machine rebuilds by means of a modified
product approval process, and to preclude product risks through early FMEA analyses.
Consequently, we ensure that our products are standardized and modularized byusing as many identical components as possible and by ensuring the best possible
qualification of our supply chain partners, thus guaranteeing optimal product quality.
Long Service Life, Repairability and Recyclability –Maximum Availability Is the Goal
A key quality of machines and systems in the Group Division Voith Hydro is their longservice life – and this is also an integral part of plant specification. Hydropower plants
are designed for a specific number of operating cycles, which generally guarantee a
service life of at least forty years.
The goal of achieving the highest possible hydropower plant availability is taken into
consideration right from the design stage. We are currently working on improvements
to enable our customers to get the maximum use from their plants. In addition, we areusing the possibilities of digitalization to further improve both security and availability,
as well as to reduce the time and scope of necessary maintenance work. Models
for predictive maintenance as well as the repair, overhaul, upgrading, and retrofittingof products throughout their lifecycle help to conserve resources while increasing

efficiency. We also carry out residual life calculations: These allow the degree of wear
and the residual service life to be determined by analyzing the mode of operation andperforming specific system measurements. This allows customers to perform theirown maintenance and repair work on the basis of the degree of wear rather than atfixed intervals and so to make better use of materials. We use the services of theHydroSchool to help our customers better understand hydropower plants and theirtechnology, thereby contributing effectively to increasing efficiency and also supporting
the availability of the machines.
Not least due to their very long service lives, the recycling of the materials in ahydropower plant is literally a cross-generational topic. The majority of the materials
used in a hydro plant can be very easily recycled at the end of its service life, sincethese are predominantly steel- and copper-based. Thanks to the plant’s long service
life, the energy consumption required for recycling is only of very minor significancein the total energy footprint.
Examples of the service life of hydropower plants being extended significantly throughmodernization are the operations at the Ffestiniog Power Station in North Wales andthe Nangbeto Hydropower Plant in Togo:• Back in the 2016 / 17 fiscal year Voith Hydro began development, planning, andconstruction work to modernize the pumped storage power plant in Ffestiniog. Oncecompleted at the start of 2020, the complex will be able to respond more quickly
to power grid demand fluctuations and operate across a greater demand range. In
addition, as the initial machine units are being refurbished mid-life this will extend
their operational lifespan for at least a further 20 years.
• In the reporting year, Voith Hydro was awarded the contract to modernize the power
plant in Nangbeto, which has been in operation for 35 years. The aim of this modernization project is to secure the operation of the plant for the next 30 years. The
scope of the work includes overhauling the generators, carrying out cavitation tests
on the turbines, replacing the turbine blades, and refurbishing the cooling system.
Furthermore the automation and communications infrastructure will be overhauled,
and a water purification plant will supply local communities with fresh water.

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Product Safety
We want to provide our customers with plants which remain safe across their entire
service life. This aspiration has the highest priority for us, and applies to all products
and services in the Group Division Voith Hydro.
Robust processes, detailed design reviews and the latest calculation methods instate-of-the-art science and technology help us to satisfy this aspiration consistently
and at every one of our plants. For risk analysis, we apply FMEA methodology.
Extensive training delivered by skilled specialists with many years of experience atour HydroSchool, as well as comprehensive on-the-job training, ensure that ourcustomers’ employees can act safely in the daily operation of the machinery.
Strategies for Greater Sustainability
Around the world, hydropower competes with other renewable energies. Here, alongside specific cost drivers, implementation periods and technology-related subsidies
increasingly play a role. We also continually monitor global developments relating
to climate change, such as rising levels of reservoir sedimentation, as well as tourbanization and electrification.
In addition there is increasing competition in storage technologies, both for shortterm requirements (Li-ion) and long-term storage needs (flow batteries, power-to-x).
Nonetheless, pumped storage technology is the only long-term, technically provenand economically viable form of large-scale energy storage. It is gaining in importancein parallel to the expansion of renewables thanks to its contribution to grid stability
and supply security.
Also gaining in importance are decarbonization efforts, where the aspects of sector
coupling and power-to-x, i.e. the conversion of electricity into forms of energy thatoffer better storage characteristics, are attracting special attention. Voith Hydro seesa potential growth market here, which can also lead to a much more sustainable,
decarbonized energy system thanks to renewables, especially hydropower.
Shaping the Future with Hydropower
Voith is convinced of the benefits of hydropower, and intends to further strengthen
its role in energy system transformation. To this end, Voith evaluates trends andtechnological developments, incorporating the findings as appropriate into the further
development of its product portfolio. In the process, Voith Hydro always needs tokeep an eye on special regional aspects and requirements regarding quality, safety,
and product responsibility. For instance, in China there is a clear trend towards a
dynamic expansion in pumped storage power plants and thus towards highly efficientmachinery optimized for both pumping and turbine operation.
In this light, as part of the Foresight project, consistent future scenarios for energy
and water were formulated with the help of scenario techniques and retropolation(gap analysis). Alongside the large hydro sector, the focus is also on the growth areasof small hydro, services, and digitalization. In the 2018 / 19 fiscal year the findings
were discussed with our customers and business partners, and compared with theirown assessments.
Above all, the three global megatrends of decarbonization, digitalization, and thecircular economy shaped the analysis in the Group Division Voith Hydro’s Foresightproject. While digitalization played a pronounced role in all scenarios, decarbonization and the circular economy were observed differently in the individual scenarios.
Together with the structure of world trade (open vs. protectionist) and global economic
growth, decarbonization and the circular economy are the key differentiating factorsof the scenarios. They also thereby directly influence the key technologies relevantin these scenarios.

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Some of the trends which emerged were as follows:
1.	With their high number of full load hours and low generation costs, hydropower
plants are perfectly suited to the production of synthetic fuels and chemicals
essential for decarbonization. Adapted hydropower plants optimized for the production of synthetic fuels offer an opportunity here, with a particular focus on theconcepts of power-to-gas and power-to-liquid. No risks through decarbonization
have currently been identified, since the demand for both renewable energy andenergy storage systems will increase. Also, existing reservoirs are needed toassure the supply of drinking water and flood control.
2.	Voith supplies highly efficient pumped storage plants which can store large quantities of renewable energy with a high level of efficiency. The use of water as thestorage medium, as well as the almost complete recyclability of the materials
used, makes pumped storage the ideal storage system for renewable energy.
Today, 97 % of the storage systems for electrical energy are based on pumped
storage. Pumped storage power plants that work with a completely closed water
cycle and are therefore not reliant on large rivers are currently being planned.
3.	The Foresight project identified and evaluated reservoir sedimentation as a major
issue for the future: This led to plans for the expansion of our service portfolio.
Voith Service is developing partnerships and solutions to counter this issue.

4.	However, for Voith Hydro, increased digitalization poses an additional challenge
regarding plant security. This is because large-scale hydropower plants countas systemically important infrastructure in many countries, so they need to meet
more stringent requirements – particularly in the area of cybersecurity.
Towards the Intelligent Hydropower Plan
Our innovation activities are currently centered on the development of new products
and services in the environment of digitalization. Against a backdrop of advancing digitalization, Voith Hydro sees the development of sensor technology as a prerequisite forenhanced interconnectivity on the journey to making the interconnected digital power
plant a reality. This will provide customers with specific advantages such as evensafer operation within a broader operating range, as well as condition-independent
maintenance resulting in higher power generation availability.
In 2018 Voith Hydro founded the OnPerformance.Lab to leverage optimization
potentials for our customers. Here, Hydro specialists analyze operating data fromhydropower plants, providing specific action recommendations for the optimization of
productivity, unplanned shutdowns and plant security. 55 hydropower plants alreadyuse analysis services such as remote support and Asset Health Assessments fromthe OnPerformance.Lab. In the course of co-development projects, plant-appropriate
individual optimization approaches are defined first. Using our interactive data platform,

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we work in collaboration with our customers to generate first-use cases from theanalysis of operating data. The high level of interconnectivity offered by the individual
systems permits automated analysis – a unique design feature. The combinationof new IIoT solutions such as our acoustic monitoring system with data analytics
transforms the system into an intelligent hydropower plant.
Demonstrable sales success confirms this approach. For example, the Austrian power
supplier VERBUND uses Voith’s acoustic monitoring system OnCare.Acoustic. Thanks
to an “ear in the hydropower plant”, the company can reduce service calls and damage at its plants and thus cut costs. The system constantly monitors the conditionof the plant, meaning hydropower operators can better plan potential maintenancework. Maintenance calls will ideally then only be carried out when they are actuallyrequired. The system uses artificial intelligence and is a sensible complement to thecurrent human monitoring of hydropower plants.
Voith Paper
The Group Division Voith Paper regards itself as a pioneer in the paper industry, with
innovative products that optimize the paper production process and enable the efficient use of resources in paper production. As a full-line supplier, Voith Paper delivers
an integrated product portfolio from a single source. Its products and components
reflect its experience as a process provider, helping to increase the capabilities andefficiency of the entire paper production process while also boosting our customers’ productivity and profitability through reduced resource consumption. Thanks toPapermaking 4.0, paper manufacturers can optimally interconnect their equipment
and raise their competitiveness through the effective and secure use of the data
generated.

Product Group

Share of Revenue ofGroup Division (%)

Projects• New facilities – paper machine• New facilities – stock preparation• Modifications to facilities

39 %Roll shells and clothing• Paper machine clothing• Roll shells• Press sleeves

34 %Products and services
Spare parts• Performance-enhancing components• Services: maintenance and repairs, training and audits• Smaller modifications to facilities

27 %

•

As the average operating lifetime of a paper machine is around 40 years, even minor
improvements in equipment efficiency can have a major impact: While the actual process of manufacturing a machine has a negligible environmental impact, the amountof energy required to operate a paper facility exceeds that required to manufacture
the machine by a factor of 300.
Besides energy use, water withdrawal is a key factor in the papermaking process – forthe environment as well as for the efficiency of the facility. Products such as HydroSeal
sealing strips also help to achieve ever more efficient solutions.

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Due to the HydroSeal components currently in use, in terms of numbers, over 27.5
million m³ of water are being saved annually compared to conventional technology.
This is equivalent to the annual German consumption level of 620,000 people – roughly
equivalent to the population of Düsseldorf. On top of this, significant energy savings
are being achieved.
We intend to continue further reducing the environmental impacts of paper production
while increasing plant cost effectiveness and are always looking for opportunities toincrease the recycling rate of its own production processes.
Trend Analyses Deliver Future Scenarios
Since 2016 Voith Paper has used a comprehensive methodology to identify
trends. This is based on five pillars: Trend Analysis, Technology Outlook, Customer
Perspective, Consumer Perspective, and “Radical Technologies”, i.e. technologicalchanges that are radically altering the paper production process and can affect theentire value chain. The trends already identified such as digitalization, sustainableconsumer behavior, population growth, and increasing urbanization remain intact andare decisive for consumer behavior and the development of markets. The megatrends
decarbonization, digitalization and the circular economy are key components of thederived future scenarios, and were transposed into strategic objectives for Voith Paper
for 2025 and also through to 2040.
Sustainability Criteria Considered in Development
The product development process in the Group Division Voith Paper follows the stagegate process. In the development phase, every product undergoes an assessmentthat examines the following key sustainability parameters: water, energy, fibrous
raw material, quality and efficiency. This assures high standards for sustainability
and security. Also, ensuring our facilities can be repaired is a key requirement in
the development stage. Furthermore, test installations offer the chance to analyze
reference values and thus lay the foundation for customer-specific modifications andimprovements.
Current research and development focus areas for Voith Paper relate to increasing efficiency in paper production; improving sustainability through reducing water
withdrawal and energy consumption; reducing emissions; and improving raw material
yield. This activity leads to product innovations that help our customers lower fiberand energy consumption in paper and cardboard production. We are also working
on avoiding production disruption at paper manufacturing facilities resulting fromadhesive contamination of the reused waste paper. A further focus is developing theability to manufacture high-value, robust packaging from recycled fibers with minimal
fresh fiber input.
Strategy for a Sustainable Product Portfolio
Voith Paper aligns its product strategies with growth markets and meets their different
requirements on paper types and regional aspects to the greatest extent possible.
One area is hygienic tissue, where demand is linked directly to the development of
the world population and to economic growth in emerging countries. The digitalizationof highly complex paper production processes will determine competitiveness in the
future. Decisive factors will be first and foremost the efficiency of the machines used,followed by optimization of paper production processes.

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Voith Paper aims to generate the greatest added value for its customers throughmaximum resource-friendliness in operation and efficiency in design. To Voith Paper,
resource conservation means above all reducing the specific consumption of freshwater as well as electrical and thermal energy per tonne of paper produced. It alsomeans reducing fiber loss and wastewater. Moreover, Voith Paper is always looking
for opportunities to increase the recycling rate of its own production processes. These
objectives apply to all new products developed by the Group Division Voith Paper. To
further optimize the operational reliability of our customers’ own paper facilities we arealso working on the automation of manual process interventions in hazardous areas.
Fact base Further Information on Social and Environmental Impacts – Voith Paper

Energy Consumption and Greenhouse Gas Emissions –Megatrend Decarbonization
Worldwide, the paper industry is facing the challenge of significantly reducing CO2
emissions. This applies especially to Europe where, in its Roadmap 2050, theConfederation of European Paper Industries (CEPI) aims to achieve a reduction in
CO2 emissions of 80 % in comparison with levels in 1990 – an enormous challenge
for the entire paper value chain. Voith Paper wants to contribute to mastering thischallenge and adjusted its strategy in the reporting period: In future, the aim is only
to develop products and services that have a positive effect on customers’ energy
efficiency and production costs.

In four defined focus areas, technologies and processes will be developed or optimized with the aim of cutting paper production CO 2 emissions and conserving
resources.
1.	The continual further development of products and technologies aimed at decreasing energy consumption is already delivering important contributions to the
reduction in CO2 emissions.
2.	Digitalization solutions to improve paper facility efficiency and availability, which
are already finding their way into production systems today, will in future make aneven greater contribution to the reduction in CO2 emissions and the conservationof resources.
3.	A further important focus area providing great strategic leverage will be the useof energy from renewable sources. Energy storage technologies and smarter
process control through artificial intelligence creates an opportunity to produce
cost-effectively, even in difficult operating conditions. Furthermore, althoughdevelopment is still in a very early phase, CO 2 storage technologies (carbon
capture & storage) will be able to make an important contribution to reducing
CO2 emissions in the future.
4.	Last but not least, the very mature industrial process of paper production offers
the potential for significant reductions in energy consumption and therefore also
the in quantity of CO2 emitted. To do so, fundamental, and where appropriate
also disruptive new developments will be required.

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Voith Paper is active as a partner in the Model Paper Factory. Since early 2019,
partners from different scientific disciplines have been working together on the futureof paper production. The goal is to design, build and run a CO2-neutral model factory.
Voith Paper’s products are already highly energy-efficient. Nevertheless, for aroundthree-quarters of the Division’s products, work is currently progressing on further
energy efficiency improvements and thus on their carbon footprint. For example, theGreen Pulping project aims to develop an energy-efficient pulping system for waste
paper. In the area of clothing, products are continuously developed that reduce energy
consumption in paper production. Moreover, products from the areas of rolls andfabrics will contribute to general energy savings in continuous operation. They will also
reduce energy requirements in paper machine ramp-up to peak output, thus savingenergy and cutting costs. Examples are a new forming fabric launched in 2019, anda felt, also available since 2019, that requires less drying energy, particularly in thecritical operations start-up phase.

Life Cycle of a Paper Machine and the Contributionof Voith Paper Components

1.

2.

3.

4.

1. Planning Phase / Supply chain•

Reduction of supply chain risks due to high content supply chain
requirements (see AEB and CoC)•

Ensuring regular monitoring

2. Creation

Products in the Mechanical Roll Service (MRS) area are also targeting reductions inpaper machines’ energy and fresh water requirements. In order to satisfy this aspiration, we are conducting Life Cycle Analyses on our products – from the manufactureof raw materials and transportation, through the production process, to use andend-of-life recycling.
During operation, digital service tools such as OnCall.Video and virtual reality training
contribute to reducing travel and therefore also the carbon footprint. For the same
reason, Voith Paper service locations are always situated close to customers. Since
2015, our regional presence has steadily expanded around the world – from 14
service hubs in 2015 to 20 regional locations at the end of the reporting period. For
example, a new service location was opened in Chile, in order to significantly reducethe carbon footprint in this part of South America through reduced transport of heavyrolls. By 2025, a further ten service locations are planned.

•

Production sites ISO 14001 and OSHAS 18001 matrix-certified•

Planning services for the entire paper plant•

Ensuring the occupational health and safety of our employees when at the customer’s location

3. Utilization Phase (Paper Production) – VP Products / Services Can Improve:•

Energy, water and fiber consumption•

Use of chemicals•

Emissions•

Extension of the usage phase by:•Modular design•

Service offering

4. End-of-Life•

Potential opportunities: Recyclable materials such as metals,
Civil engineering materials, plastics, oils•

Potential risks: process residues, hydraulic oils

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4_Products and Supply ChainLong Service Life of Products through Upgrading, Retrofitting and
Ensuring our Products can be Repaired
If facilities are to operate efficiently and safely for decades, aspects such as ensuring our products can be repaired and facilities upgraded play a significant role ineconomic feasibility.
Together with our customers, care is taken early on during plant installation to ensure
optimal operating conditions. In addition, special service audits offer customers theopportunity to assess individual machine components or even entire systems, and so
to further optimize operating conditions. This also includes aspects such as energy
and raw materials consumption. Regular maintenance and the appropriate documentation deliver an overview of plant condition, also contributing to the optimal operationof the facility. Innovative products such as TalkingRoll and SealView, launched on
the market in 2019, harness the advantages of digitalization and sensor technology,
supporting future repairability through preventive maintenance.
A further example is the automated and secure identification of our products bymeans of ID tags. These digital solutions not only save costs, but also reliably avoid
installation of the wrong components, which can potentially lead to hazards to people
and machines.
For existing facilities, upgrades offer the chance to reduce energy consumption in allprocess steps. Nevertheless, Voith engineers are constantly tasked with supplying
spare parts for third-party components – e.g. for transmission units produced bycompetitors that are no longer active in the market – to enable customers to continue
operating a system.

Using Resources Efficiently – the Goal of a Circular Economy
Voith Paper is increasingly using renewable raw materials and is working tirelessly toclose material, water, and auxiliary cycles. By virtue of the decades-long service life of
paper machines, our development experts’ focus is above all on resource efficiency inthe utilization phase. Voith paper machines enable the production of paper products
in which resources are used optimally.
Steel, as well as materials for structural and civil engineering, account for the largest
share of material types in Voith Paper’s supply chain. For stainless steel and black(untreated) steel, further increases in material efficiency are achieved by means ofmodern calculation methods and production processes. In the area of rolls and fabrics,
plastics have the largest share in terms of value. Here, alternatives to petroleum-based
plastics are currently being sought and developed, while different options for material
recycling are also being analyzed and evaluated.
The paper value chain currently enjoys a very stable position with a high recycling rate,
which in Germany today stands at over 75 %. In order to increase this share further
and to continue to close the cycle, appropriate technologies for stock preparation are
required. It is thereby important to develop additional process steps or customized
processes in order to safeguard the use of recycled paper in paper production. A
particular challenge regarding recyclability is the loss of large amounts of graphic
paper such as newspapers and magazines. This means that fewer fibers often onlyused once are introduced into the recycling loop. In turn, this reduces the strength
potential of the used-paper mix. Voith Paper is working on new solutions, suchas OnEfficiency.Strength, to improve the strength potential of fibers before further
processing – a key contribution to maintaining the recycling loop.

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The area of plastic packaging offers the chance to replace plastic packaging with paperand cardboard products, which are highly attractive due to their very good recycling
properties. This requires the further development of paper and cardboard boxes sothat they can assume the barrier function of plastics, repelling water, fat and gaseous
substances while at the same time retaining their recyclability.
Voith Paper has had many decades of market success with recycling technology
for waste paper as a raw material for paper production, waste water, and rejects.
Today, the Group Division leads the market in stock preparation solutions and is
working further on the development of processing technologies as well as concepts
for improving fiber yield and quality. These developments are implemented in close
collaboration with customers, ensuring a rapid market introduction. The target is todevelop the necessary machine-based solutions in order to be able to produce these
papers and cardboard boxes at competitive costs. With a broad product portfolio ofcomponents for process improvement (PEC), Voith Paper offers solutions that are
optimally tailored to meet the evolving challenges of paper reuse.
P&S products are developed so as to achieve both low fiber loss and a reduction
in reprocessing chemicals. Both for new facilities as well as for existing plants, we
provide solutions that guarantee optimal processing of recycled fibrous material, evenwhen this is of low quality. An example: in the reporting period, with QualiFlex shoepress sleeves, a change made to the chemical composition of the sleeves allowed
them to react better to mechanical malfunctions, which cannot be completely avoided
in paper machine operation – particularly given the steadily worsening quality of fibrous
raw materials from recycled sources. This enables the shoe press sleeves to achieve
an extended lifespan.
In the reporting period, concepts were developed to integrate wearing parts evenbetter into the circular economy. Since the high-performance plastics needed for the
products and the surplus or residues produced during the manufacturing process

can rarely be reused one-to-one, disposal or downcycling generally take place.
We are currently working on evaluating renewable raw materials as a replacement for
petroleum-based raw materials.
Digitalization – An opportunity to Differentiate Ourselves from the Competition
Digitalization offers Voith Paper the opportunity to use its core strengths to differentiate itself even more clearly from the competition. Together with Voith Digital Ventures,
Voith Paper is working on increasing the availability of paper machines as well as
improving process efficiency. This also includes predictive maintenance solutions. One
example is the Talking Roll, a sensorized functional roll that learns by itself, predicting
remaining roll runtime and actively communicating service requirements; the safe
operating window regarding predictive maintenance is calculated using cloud-based
data analysis techniques. In addition, the system indirectly serves to complete thehigher-level datasets required for the efficient management of paper production
processes. A further driving force of the digital portfolio in the Paper Division are theOnEfficiency products that can help customers save fibers, chemicals, water and otherraw materials when operating their facilities. This means that the OnEfficiency suite
not only represents a valuable contribution to greater machine operating efficiency
for our customers, but also protects our environment thanks to more sustainable
use of natural resources.
In the project business, through incorporating digital thinking early, Voith Paper wants
to set benchmarks in constructing plant required for the scaling and sustainable implementation of digitalization. The focus here is on the development of smart products andcloud-based data analysis techniques. Under the label PM (Papermaking) 4.0 Ready,the aim is to prepare both instrumentalization and automation for the digital age.
For example, we are working on further stabilizing paper production processes
through data analysis. As a result, rejects will be avoided and resources such as
fabric, water and energy will be used more efficiently.

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The Voith Blue Box, a tool for recording machine-specific data, laid the foundation foran automation platform in the reporting period. The collected data can be analyzed
via the OnCumulus cloud and used for 24-hour online monitoring.
Digitalization also plays an important role in the service business. Tools such as theVideo Remote Service and virtual reality training enhance the existing service portfolio.
This allows travel time to be reduced and at the same time lowers costs and CO2
emissions. In the replacement parts business, thanks to additive manufacturing, i.e.
the 3D printing of parts on site, the transport of “emergency spare parts” can be
avoided. Furthermore, 3D printing also enables the use of environmentally friendly
materials.
OutlookOver the coming years Voith Paper expects new emissions legislation, which tookeffect from mid-2018 in the EU and in all signatory countries to the Kyoto Protocol,
to provide considerable stimuli. As a consequence, customers are giving greater
consideration to energy-saving projects – a focus that our machines, products, andmodification projects strongly support. Within this, Voith Paper is concentrating inparticular on the topic of wastewater treatment and the further closure of water cycles.

Voith Turbo
The Group Division Voith Turbo is a specialist in intelligent drive solutions, systems,
and pioneering service solutions. Customers from numerous sectors such as oil &gas, energy, mining and mechanical engineering, marine technology as well as rail andcommercial vehicles rely on Voith’s cutting-edge technologies and comprehensive
expertise.

Product Group

Share of Revenue ofGroup Division (%)

VT Mobility

67 %VT Industry

30 %VT Others / Digital Ventures

3%

Trend Analyses Define Search Fields for Innovations
After the successful conclusion of the Foresight project, in the reporting year Voith
Turbo further developed its scenarios for mobility, water, and environmental technologies. Strategic search areas for innovations and technologies were derived from thefindings of the project, also in the fields of alternative drives, artificial intelligenceand the use of new and hybrid materials. Specific technology roadmaps for theelectrification of powertrains were also developed, as well as roadmaps for the further
digitalization of product lines.

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Life Cycle of a Transmission and the Contributionof Voith Turbo Components

1.

2.

3.

4.

1. Planning Phase / Supply chain•

Reduction of supply chain risks due to high content requirements
supply chain (see AEB and CoC)•

Ensuring regular monitoring

Strategy for a Sustainable Product Portfolio
Voith Turbo aims to offer its customers increasingly energy-efficient and eco-friendly
product generations, and makes ongoing efforts within a continual improvement
process in which customers are also involved to ensure this. Here we always focus
on the impact of using a Voith component on the total cost of ownership (TCO).
Energy costs account for by far the largest share, so reducing these takes top priority
for all business areas at Voith Turbo. At present, further improvements in energy
efficiency and the climate footprint are being made for 80 % of the products in theGroup Division Turbo.
One example from the reporting period is the new Voith Electrical Drive System, whichmarks a milestone in the transformation of inner-city mobility. As a long-standing
and established system supplier and partner to the bus industry, Voith Turbo has
combined its expertise in drive units, e-mobility and telematics applications to develop
a pioneering electric drive system for public transport that generates no local NOX or
CO2 emissions, is easy to integrate, and operates quietly and efficiently.

2. Creation•

Production sites ISO 14001 and OSHAS 18001 matrix-certified•

Ensuring the occupational health and safety of our employees when
integrating the transmission unit at the customer’s location

3. Utilization Phase (Urban and Intercity Traffic) – VT Products / Services Can Improve:•

Reduction of emissions through acceleration and topography-based gear shifting andSmart Assist•

Optimization of operating costs through Smart Maintenance and service-friendliness•Resource conservation through exchange gear program (refurbishment of gearboxes)

4. End-of-Life•

Professional handling and disposal•

Recyclable materials such as aluminum, copper, steel, little plastic

Fact base Further Information on Social and Environmental Impacts – Voith Turbo

Voith Turbo predominantly supplies components that, as part of an overall system,
have differing energy and material footprints. We employ a range of tools to gain aneven more detailed picture of our products’ energy and raw-material efficiency. Amongthese, for many years now we have conducted product Life Cycle Assessments (LCAs)
in accordance with ISO 14040 and 14044.
Voith Turbo also aims to reduce its use of materials with a negative impact on humanhealth or the environment to an absolute minimum. The product development process
already incorporates this requirement right from its early stages, with harmful materials
replaced by other materials as early as the engineering phase, wherever technicallyand economically feasible.

57

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4_Products and Supply Chain

Guideline for Sustainable Product Development
Voith Turbo has established a guideline for implementing sustainable product development. The three steps, Green Design, EcoDesign and Sustainable Design, describe
all material sustainability criteria and define specific requirements. For example, Green
Design encompasses aspects of material selection, ingredients, packaging, reparability, and end-of-life considerations. EcoDesign explains the principles of Life Cycle
Assessment according to ISO 14040 and 14044. Sustainable Design adds social andlegal aspects such as fair competition and ethical conduct in business relationships.

Long Service Life and Reparability – Contributing to the Circular
Economy MegatrendLong service life is a key quality of Voith products and at the same time means
they use fewer resources. Our service promise is based on supporting systems
and components over a very long period with spare parts and therefore avoiding
early scrapping. This remanufacturing is resource-efficient by prolonging products’
lifecycle, while customers benefit from lower total cost of ownership (TCO) due tothe longer life span.

Focus on Energy Efficiency – Megatrend Decarbonization
For Voith Turbo, decarbonization and the path towards e-mobility are still the key
megatrends, which once again accelerated during the reporting period in combination
with significantly more demanding emissions targets. Voith Turbo Mobility is addressing this challenge by developing hybrid transmissions and a fully electric drive. The aim
here is the market launch of singularly efficient systems in the competitive environment.

We are now also able to restore spare parts with low resource consumption thanks
to newly developed additive manufacturing processes, which avoid new cast parts,for example. Digitalization in service and production also supports the overhaul ofbus-transmission returns and leads to design improvements, intelligent spare parts
supply, and significantly optimized transmission service life.

In addition, extensive e-mobility projects have already been set in motion together
with Voith Digital Ventures. In the reporting year, this collaboration led to the deliveryof six city buses supplied with electric drive systems and will be put into operation in
future in Schwäbisch Hall and Heidenheim, Germany.
With the delivery of the first automated train couplers for freight trains to Swiss Federal
Railways (SBB), Voith is contributing to strengthening rail freight transport, which cansubstantially help with lowering CO2 emissions. The global trend towards urbanization
also gives Voith Turbo an opportunity in the area of construction machinery, forexample by offering heavy transmissions and electric drive technology. In the industrial
sector, Voith Turbo is preparing for the expansion of the hydrogen economy. This
Group Division can make an important contribution here to the efficient liquefaction
and compression of hydrogen.

As part of modularization and value analysis, we are working on further increasing therecyclability, upgradeability, and reparability of products. This is enabled, for example,
by intelligently designing interfaces so that individual modules can be swapped out
quickly and easily without having to replace the entire product.
Megatrend Digitalization
Voith Turbo continues to focus on the digitalization of its product portfolio to enable
resources to be used even more efficiently. To this end, in the reporting period Voith
Turbo worked on various systems for status monitoring components and systems. This
is intended to avoid critical operating conditions and support the reliability and longservice life of products. At the same time, these systems deliver valuable information
about how the machines can be operated with greater energy efficiency.

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The digitalization of internal process chains allows Voith Turbo to provide customers with offerings and assistance more quickly, for example by using appropriate
configurations to maximize product utilization efficiency. Examples of this are the useof augmented reality in manufacturing, and the provision of interactive maintenanceinstructions in service.
Customers Play a Key Role
As part of product development, Voith Turbo customers are involved early on inproviding their feedback – in some cases even on a prototype or MVP (Minimum
Viable Product) basis. Examples of this approach include the BeltGenius product forthe mining sector, as well as various development projects in the area of mobility.
Dedicated customer surveys were also conducted in the reporting period ahead ofthe development of the rail products New DHM and DIWARail NXT.
Customer requirements focus on compliance with the relevant regulations relating tohazardous substances (REACH), increasing the efficiency of drive components, theirservice life and maintenance, and the long-term availability of spare parts, especiallyfor electronic components.
Our customers are increasingly requesting condition-monitoring systems, and work isalready underway together with those requiring them on realizing these. CM systems
monitor critical processes in the oil and gas sector. In addition, together with our
Mobility customers we have developed the market-ready Smart Accelerate product:
This allows fuel savings to be achieved in city bus operations and is already proving
its worth in trials.
We maintain an extensive list of customer requirements, which provides important
starting points for the further development of the product portfolio. This results in clear

quantitative specifications in project requirements and scopes in terms of efficiencies,
fuel consumption or total operating costs.
SafetyVoith Turbo places the highest demands on the quality of its products and has
documented this in its safety policy. The Group Division sets corresponding targets
and closely monitors their achievement. Product safety is an integral part of allprocesses, while preventive methods such as Failure Mode and Effects Analysis(FMEA) are also anchored there. Quality Management reviews the achievement ofsafety targets annually, assesses safety-relevant incidents, and takes appropriate
measures where needed.
Voith Turbo inspects all products regarding safety and potential impact on health.
We consider a large number of relevant criteria here, from functional safety, throughexplosion and fire protection, to electrical safety and electromagnetic compatibility.
All products are also monitored for safety and reliability throughout their service life.
Depending on the applicable contractual, legal, or official requirements, systems suchas Entity in Charge of Maintenance (ECCM) are applied, as well as information fromofficially required systems. Our own observations and insights as part of maintenancecontracts provide further indications.
Voith Turbo provides its customers with all relevant safety information. This can befound for example in Safety Data Sheets, product declarations (REACH, IMDS, etc.),
fire protection certificates for materials or safety requirement specifications for risk
assessments (CE, etc.). Wherever necessary, Voith Turbo supports its customers
when it comes to authorization and approval of its products, and delivers the required
documentation and registration papers. The Division’s experts are often involvedin the creation of safety concepts as early as the product development phase and59

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3_Employees

4_Products and Supply Chain

check their implementation, right through to joint validation with the customer. Where
required, the components are taken into operation jointly with the product or system
customer. Extensive training courses on the safe operation of products provide further
support in this area.
OutlookVoith Turbo continues to see a considerable increase in demand for energy-saving
solutions in the power plant and raw materials segment. There are also an increasing
number of approaches to rolling out systems and services that monitor and increase
the efficiency of entire plants – an area in which Voith Turbo works closely with Voith
Digital Ventures. In China, expansion of the high-speed rail network shows no signs ofslowing down. In Europe in particular, Voith Turbo expects a further tightening of railand commercial vehicle emission regulations as well as growing customer demands
for greater vehicle energy efficiency. In the medium and long term, it is expected thatless efficient technologies will be gradually taken out of service in all markets andareas relevant to Voith Turbo. It is important here to establish transition technologies
that are both technically and economically viable. Long-term, these will be sustainable
technologies in which combustion engines no longer play a role.
Voith Digital Ventures
Voith offers its customers digital solutions with demonstrable added value. Customers
benefit from performance improvements and lower operating costs, also in maintenance thanks to the optimization of availability and costs.
Digital Ventures partners the Group Divisions in developing digital solutions. To thisend, Digital Ventures provides a cross-divisional, scalable, future-proof and end-toend technology stack, among other supports. This data ecosystem enables the fastand efficient development of new digital products and solutions, short time-to-market,
and a high level of scalability of the solutions developed.

In addition, Voith Digital Ventures holds responsibility for topics across Group Divisions
in the areas of asset management, health performance management and condition
monitoring. With the convergence of automation and IIoT, Digital Ventures ensures theinteraction and joint development of these areas, especially through the Automation
Platform and OnCumulus projects.
Focus on Opportunities through Digitalization
In its Foresight project, Voith Digital Ventures highlighted the opportunities presented
by the use of digital technologies in the relevant markets. These primarily concerned
solutions that provide demonstrable added value for our customers, such as costsavings, quality and production increases, process stabilization, and improved
maintenance management. Digital Ventures also highlights the identified trends in its
search for new partnerships and corporate investments.
Based on cloud technologies, in the reporting period various foundational applications
were developed on the shared OnCumulus platform that are intended to become
part of the of Voith Paper, Hydro, and Turbo product offerings. A particular focus
here was on the application of machine learning (AI) to help continuously optimize
the operation of systems and increase their availability. Work is currently underway tofurther develop the architecture for combined automation and operation monitoring
systems as integrated IIoT systems that can be used in all Voith core areas.
The progressive collection of a wide range of data from different sources – such asenvironmental or geodata as well as data on consumer behavior – opens up new
evaluation possibilities when combined with production data. The extension of dataacquisition via IOT systems and its combination with machine data supports new
applications, such as assistance systems to support energy-saving driving styles forvehicles.

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4_Products and Supply Chain

4.2 Responsibility in the Supply Chain
In the 2018 / 19 fiscal year we once again purchased goods and services worth over
€ 2 billion from our external suppliers and service providers. The spectrum of thegoods we purchased was, as always, highly diverse. Measured by overall invoicing
volume, the purchase of complete plant systems represented the largest item of
expenditure, as in the previous year. As a fundamental principle we work to build
long-term relationships with our business partners, and therefore closely monitor
the economic sustainability of our requirements on them. In this regard, fairness isthe core element in establishing and maintaining a long-term, trust-based business
relationship.
Fact base Procurement Markets

Managing Sustainability in the Supply Chain
Our Corporate Strategic Purchasing (CSP) Department is responsible for sustainability
topics within Voith’s purchasing activities. Besides reporting, the department also
focuses on supplier-specific compliance activities. Current topics are agreed in thePurchasing committee on a cross-Group divisional level, together with representatives
from each division. Our fundamental principles on resource conservation, environmental and social responsibility are anchored in our Purchasing strategy and the processdescriptions in the Voith Purchasing Manual, right across all our supply chains. In ourpurchasing activities we pay particular attention to compliance with applicable laws,
including those relating to occupational health, safety and environmental protection,and the prohibition of child and forced labor. Different legal situations and constantly
growing demands on documentation place high demands on our company.

In a Declaration of Principles, Voith has committed to the 1948 UN Universal
Declaration of Human Rights, the 2015 UK Modern Slavery Act, and the 2010
California Transparency in Supply Chains Act. This sets out clear rules for prohibiting forced labor and human trafficking in the supply chain. Voith rejects any and allforms of forced or child labor, as well as any obstruction of the legal representationof employees' interests. If a supplier violates these rules, we are obliged to terminate
the relationship.
Various preventive measures ensure that the rules are implemented: In addition
to the clear guidelines in the Code of Conduct, all employees receive appropriate
e-training, while managers in Sales and Purchasing are specifically sensitized andtrained in face-to-face training sessions. For suppliers with an order volume of more than
€ 25,000, we also carry out an integrity check, consisting of an appropriate background research by Purchasing staff. Last but not least, our regular supplier audits
also include plant inspections, during which particular attention is paid to indicationsof forced or child labor.
Code of Conduct Sets the Framework
Our Code of Conduct (CoC) is the core guide for all our purchasing activities. Together
with our General Purchasing Conditions (GPCs), the CoC defines our understandingof partnership-based collaboration and sets out guidelines on dealing with issues
regarding compliance as well as environmental and social standards. Among otherstipulations, it requires full compliance with our ban on discrimination. In addition, theGPCs contain a directive governing the declaration of hazardous materials.
Fact base Approach to Hazardous Substances and Conflict Materials in the Supply Chain

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4_Products and Supply Chain

Our CoC and GPCs are freely accessible online. They provide the basis for sustainableagreements with our suppliers, and also require them to place their own subcontractors and upstream providers under equally strict (or stricter) obligations. Furthermore,during the assessments and audits carried out by Quality Management, attention ispaid to compliance with social and environmental standards in accordance with our
Code of Conduct.
By drawing up country-specific versions of our GPCs we ensure that our Purchasingorganization takes national particularities into account, for instance with regard to
payment conditions, environmental requirements, and customs regulations. In thereporting period, specific versions were put in place for a further four countries, while
one was updated.
Fact base Country-specific GPCs

A further function of Voith SLM & eSourcing is eSourcing itself, aimed at raisingtransparency in purchasing processes. This makes it possible for suppliers to process
requests online via a unified platform that additionally interfaces with the Voith SAP
system. Price negotiations on individual tenders can also be carried out online. Thiseliminates the need for travel to face-to-face negotiations and also correspondingly
reduces the burden on the environment. The transparent and fair contract award
process for all parties, internal award specifications for auctions, and eAuction Golden
Rules also ensure that compliance requirements are met at all times.
Extensive Training Programs
The Purchasing School training program was specially developed for our Purchasingorganization. We actively encourage our employees to take part in Voith’s global
further education offer to ensure that our people are always fully up to date on legal
compliance requirements, adherence to standard purchasing processes, usage of
our IT systems, and our supplier negotiation rules.

GPC General Purchasing Conditions

Central IT System Enables Supplier Management
Voith SLM & eSourcing (SLM = Supplier Lifecycle Management) is a central system
for supplier management used by Voith Purchasing globally and across several sites.
Regular software updates are also used to correct and eliminate redundant andobsolete datasets. Suppliers can log into Voith SLM & eSourcing as users directly via
the Voith homepage, update their details themselves, complete survey questionnaires,
upload certificates, and respond to calls for tender.
The system also comprises further supplier management aspects, in addition to theCompliance and Sustainability Checks as well as the Supplier Evaluations as detailed
below: These aspects include a document database for contracts and contractuallyrelated documents such as Non-disclosure Agreements (NDAs), as well as a certificate
database that includes quality certifications.

Our further education measures include a compulsory one-day, onsite training module
on Compliance, and the regular New Buyer Academy for recently hired Purchasing
employees. In the onsite courses, local trainers also present key elements of therespective market culture and characteristics. Webinars and e-learning offers additionally ensure training content is globally available and constantly up to date. Seminars
and webinars are delivered in all Voith regions around the world.
In the reporting year, almost all Purchasing employees once again took part in trainingor e-learning courses. Overall, Purchasing employees received 9,397 training hours
in the year under review, around 1,850 of these as part of the Purchasing School.
Ongoing compliance training also took place regularly. These mandatory events forPurchasing employees focused on the rules of the Code of Conduct, the relevant
anticorruption laws, competition law, and occupational safety regulations.
Fact base Scope of Training

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4_Products and Supply Chain

All relevant information on the topics of compliance and sustainability, the Voith
Code of Conduct, the GPCs, and documents on packaging and logistics guidelines,
empty container requirements, etc. are publicly available on the Voith website under
Supplier Ecosystem.
Consistent Response to Violations
If a supplier violates applicable laws or the Voith Code of Conduct, or loses its
creditworthiness, our Purchasing organization is required to terminate the business
relationship and to place the respective supplier on the Group’s central blacklist.
Violations of Voith’s occupational safety, health, and environmental protection standards can also trigger Group-wide blacklisting. This also takes place in cooperationand coordination with the Voith Legal department in order to be able to assess theviolation from a legal and compliance perspective. The actual blacklisting is thencarried out by Voith’s central Master Data Governance department, which has hadorganizational representation in all Voith regions since 2019 and has begun to assume
its technical responsibility there. To this end, a central Master Data Governance
System is being introduced to support the processes technically. This project started
in the reporting period and is now being implemented in stages.
Suppliers as well as all other external stakeholders can also report violations of sustainability standards in the supply chain on their own initiative. The Voith whistleblower
hotlines (Whistleblower Scheme and Compliance Helpdesk) are available to them,
just as they are to our own employees. The Compliance Helpdesk is divided into five
local Compliance Helpdesks. Staffed by local multilingual contacts and present inall key Voith regions – China, North America, South America, Austria, and Germany(including all other countries) – this system is available to both internal and external
whistleblowers. The Compliance Helpdesk and the Whistleblower Scheme are alsoavailable via the Voith website. The anonymity of whistleblowers is always assured.

Checks Prior to Business Relationships
As soon as new creditors (suppliers) are created – led by the Master Data Governancedepartment and supported by Purchasing staff – various upstream Compliance andSustainability Checks enable Voith to screen potential suppliers before a business
relationship is established. For instance, they establish whether a specific supplier isbased in a risk country (Critical Country Check) or is even blacklisted (Blocked List
Check). Supplier-data consistency, including their banking records, is double-checked
by at least two Voith specialists.
Self-assessments Help Reduce Risks
To minimize risks in the overall purchasing process we continue to require regularCompliance and Sustainability self-assessment documentation from our suppliers.
The Group-wide standardized Supplier Questionnaires ensure that the data fromthese are collated and processed in a logical and optimally coordinated way. As at
the end of the reporting period the system already contained a valid Compliance andSustainability Check for over 5,971 Voith suppliers. The suppliers assessed in thisway represented 64 % of our overall supplier expenditure. Alongside material-specificquestionnaires, the Supplier Self-assessment on HSE (occupational safety, health,and environmental protection) complements our Supplier Self-assessment initiatives.
Fact base Supplier Self-assessment

In addition to the Supplier Self-assessment, working together with our buyers our
employees in the specialist departments also assess our active suppliers. A standardized procedure with transparent criteria ensures cross-Group comparability of
the results. We are now increasingly switching to case- and classification-based
assessment: This new approach allows us to focus more closely on the content of
our supplier interactions and business relationships.
Fact base Evaluation of Suppliers

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3_Employees

4_Products and Supply Chain

In the reporting period, the transparent criteria for production material were reviewed,
simplified further, and standardized across the Group and the world. This increases
transparency and comparability of the results.
There are currently over 1,200 individual evaluations for almost 1,000 defined suppliers, which can be viewed worldwide in the system. The topic area of sustainability
is also included as a criterion in this supplier evaluation. The Sustainability Ratioshows our specialists’ subjective assessment of our suppliers regarding compliancewith environmental and social standards. The business partners we assessed in thereporting period reached an average ratio of 82.8 %, which broadly matches the ratio
achieved in the previous year.
Furthermore, a uniform supplier classification system was implemented in the reporting period. At present, Purchasing staff are classifying suppliers according to theirimportance in the supply chain.
Fact base Supplier ComplianceGRI-Index

2019

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4_Products and Supply Chain

General Disclosures
Disclosures

Comment

Reference

Organizational profile
102-1

Name of the organization

3

102-2

Activities, brands, products, and services

3–4

102-3

Location of headquarters

3

102-4

Location of operations

3
AR 2019: 84–85

102-5

Ownership and legal form

3

102-6

Markets served

Fact base: International Focus (76)102-7Scale of the organization

4–5
Fact base: Economic Indicators (75)Fact base: Employee Structure (92)
AR 2019: 76–77

102-8

Information on employees and other workers

29
Fact base: Employee Structure (92)Fact base: Employees by Employment Type (93–94)

102-9

Supply chain

60
Fact base: Procurement Markets (111)102-10Significant changes to the organization and its
supply chain

4–5

102-11

Precautionary Principle or approach

As a family-owned company with a long-term
focus, Voith is committed to a precautionary
approach. This is anchored in our management
and Group Directives, for example in the Health,
Safety & Environmental Protection (HSE) Group
Directive.

102-12External initiatives

9–12

102-13

Membership of associations

Fact base: Memberships and Association (77)Statement from senior decision-maker2

102-16

Values, principles, standards, and norms of behavior

9–12; 60–61

102-17

Mechanisms for advice and concerns about ethics

10
Fact base: Escalation Paths (77)

Strategy102-14
Ethics and integrity

66

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2_Environment

3_Employees

Disclosures

4_Products and Supply Chain

Comment

Reference

Governance102-18Governance structure

AR 2019: 8–16

Stakeholder engagement102-40

List of stakeholder groups

7–8

102-41

Collective bargaining agreements

30
Fact base: Details on Upholding Employee Rights (95)102-42

Identifying and selecting stakeholders

6–8

102-43

Approach to stakeholder engagement

6–8

102-44

Key topics and concerns raised

7–8; 42102-45

Entities included in the consolidated financial statements

113
AR 2019: 84–85

102-46

Defining report content and topic Boundaries

8102-47

List of material topics

8
Voith SR 2018: 8

102-48

Restatements of information

113

102-49Changes in reporting

113

102-50

Reporting period

113

102-51

Date of most recent report

113

102-52

Reporting cycle

113

102-53

Contact point for questions regarding the report

114

102-54Claims of reporting in accordance with the GRI Standards

113

102-55

GRI content index

102-56External assurance

Reporting practice

64–73
This report has not been externally audited.

67

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2_Environment

3_Employees

4_Products and Supply Chain

Topic-specific Standards
Disclosures

Comment

Reference

Economic
Economic Performance
103 / 201

Management Approach

4–5

201-1

Direct economic value generated and distributed

Fact base: Economic Indicators (75–76)
Fact base: Donations and Sponsorship (78)Fact base: Expenditures for Employees (95)

201-3

Defined benefit plan obligations and other retirement
plans

AR 2019: 106–107

201-4

Financial assistance received from government

No significant financial assistance inthe reporting period.

Anti-corruption
103 /  205

Management Approach

9–12; 60–63
Fact base: Escalation Paths (77)http://voith.com/corp-de/coc-english.pdf

205-2

Communication and training about anti-corruption
policies and procedures

10
Fact base: Compliance Training (77)Anti-competitive Behavior
103 / 206

Management Approach

206-1

Legal actions for anti-competitive behavior, anti-trust,and monopoly practices

9–12; 60–63
Fact base: Escalation Paths (77)http://voith.com/corp-de/coc-english.pdf
For reasons of confidentiality, the number
and type of complaints is not communicatedexternally.

10–11; 62–63
Fact base: Breaches of Compliance Regulations (77)Fact base: Supplier Compliance (112)

Environmental
Materials
103 / 301

Management Approach

15–20

301-1

Materials used by weight or volume

24
Fact base: Materials Used (86)301-2

Recycled input materials used

24
Fact base: Materials Used (86)68

1_Strategy and Integrity

2_Environment

3_Employees

Disclosures

4_Products and Supply Chain

Comment

Reference

Energy103 / 302

Management Approach

15–20

302-1

Energy consumption within the organization

21–22
Fact base: Energy Consumption by Scope (80–81)
Fact base: Production-related Energy Consumption (82)Fact base: Proportion of Direct and Indirect Energy (82)Fact base: Renewable Energies (82)Fact base: Electricity Mix (82)302-2Energy consumption outside of the organization

21–22
Fact base: Energy Consumption: Total (80)Fact base: Indirect Energy Consumption: Scope 3 (81)Fact base: Proportion of Direct and Indirect Energy (82)302-3Energy intensity

18
Fact base: Production-related Energy Consumption (82)302-4Reduction of energy consumption

21–22
Fact base: Energy-saving Measures and Further Potentials
(80)

302-5

Reductions in energy requirements of products
and services

44–45; 51–52; 56–57
Fact base: Further Information on Social and Environmental
Impacts – Voith Hydro (106–107)
Fact base: Further Information on Social and Environmental
Impacts – Voith Paper (108)
Fact base: Further Information on Social and Environmental
Impacts – Voith Turbo (109–110)

103 / 303

Management Approach

15–20

303-1

Interactions with water as a shared resource

26–27

303-2

Management of water discharge-related impacts

27–28

303-3

Water withdrawal

18; 26–27
Fact base: Warer Consumption (88–89)

303-4

Water discharge

27
Fact base: Wastewater by Method of Discharge (90)103 / 305

Management Approach

15–20

305-1

Direct (Scope 1) GHG emissions

23–24
Fact base: GHG Emissions Recording Methodology (83)Fact base: GHG Emissions: Scope 1 (84)

Water

Emissions

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2_Environment

3_Employees

Disclosures

4_Products and Supply Chain

Comment

Reference

305-2

Energy indirect (Scope 2) GHG emissions

23–24
Fact base: GHG Emissions Recording Methodology (83)Fact base: GHG Emissions: Scope 2 (84)305-3

Other indirect (Scope 3) GHG emissions

23–24
Fact base: GHG Emissions Recording Methodology (83)Fact base: GHG Emissions: Scope 3 (84)
Fact base: Emissions from Business Trips (85)305-4

GHG emissions intensity

23–24
Fact base: GHG Emissions: Specific (Scope 1 and 2) (85)305-5Reduction of GHG emissions

23–24
Fact base: GHG Emission Reduction Measures (85)305-6Emissions of ozone-depleting substances (ODS)

Fact base: Air Pollutants (86)305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and othersignificant air emissions

Fact base: Air Pollutants (86)103 / 306

Management Approach

15–20

306-2

Waste by type and disposal method

25
Fact base: Waste Volume (87)Fact base: Waste Saving Measures and Further Potentials(87)
Fact base: Waste Disposal (88)306-3

Significant spills

306-4

Transport of hazardous waste

25
Fact base: Hazardous Waste (88)306-5Water bodies affected by water discharges and/or runoff

27–28
Fact base: Water and Neighboring Habitat Protection (91)

Effluents and Waste

Voith is not aware of any significant incidents.

Environmental Compliance
103 / 307

Management Approach

307-1

Non-compliance with environmental laws and regulations

9–12; 17
Voith is not aware of any significant incidents.

17
Fact base: Breaches of Compliance Regulations (77)70

1_Strategy and Integrity

2_Environment

3_Employees

Disclosures

4_Products and Supply Chain

Comment

Reference

Supplier Environmental Assessment
103 / 308

Management Approach

60–63

308-1

New suppliers that were screened using environmental
criteria

62–63
Fact base: Supplier Self Assessment (111)
Fact base: Evaluation of Suppliers (112)103 / 401

Management Approach

29–30

401-1

New employee hires and employee turnover

32
Fact base: Employment Length (98)Fact base: Employee Turnover (99)
Fact base: New Hirings (100)401-3

Parental leave

Fact base: Parental Leave (97)SocialEmployment

Labor/Management Relations
103 / 402

Management Approach

29–30

402-1

Minimum notice periods regarding operational changes

Fact base: Details on Upholding Employee Rights (85)

Occupational Health and Safety
103 / 403

Management Approach

35–39

403-1

Occupational health and safety management system

35–37

403-2

Hazard identification, risk assessment, and incident
investigation

35
Fact base: Approach to Preventing or Dealing with
Negative Health and Safety Impacts (192)403-3

Occupational health services

37–39

403-4

Worker participation, consultation, and communication on
occupational health and safety

36
Fact base: Employee Representation in Committees (102)403-5Worker training on occupational health and safety

37
Fact base: Occupational Safety Training (104)403-6

Promotion of worker health

39

403-7

Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships

38

71

1_Strategy and Integrity

2_Environment

3_Employees

Disclosures

4_Products and Supply Chain

Comment

Reference

403-8

Workers covered by an occupational health and safety
management system

35
Fact base: Certifications (79)403-9Work-related injuries

36
Fact base: Occupational Accidents (102–104)

Training and Education
103 / 404

Management Approach

29–30; 32–35

404-1

Average hours of training per year per employee

34
Fact base: Training and Education & Career Development
(101)

404-2

Programs for upgrading employee skills and transition
assistance programs

33–35

404-3

Percentage of employees receiving regular performanceand career development reviews

34
Fact base: Training and Education & Career Development(101)

Diversity and Equal Opportunity
103 / 405

Management Approach

29–32

405-1

Diversity of governance bodies and employees

31–32Fact base: Employment Ratio of People with Disabilities(96)
Fact base: Diversity in the Management Team and in the
Workforce (96)AR 2019: 16
http://voith.com/corp-en/about-us/company/corporateboard-of-management.html

103 / 406

Management Approach

29–32

406-1

Incidents of discrimination and corrective actions taken

Non-discrimination
Voith did not receive reports of any significant
incidents in the reporting period.

30–31

Freedom of Association and Collective Bargaining
103 / 407

Management Approach

407-1

Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk

29–30; 60–63
Fact base: Details on Upholding Employee Rights (95)
http://voith.com/corp-de/coc-english.pdf
Voith did not receive reports of any significant
incidents in the reporting period.

62
Fact base: Details on Upholding Employee Rights (95)72

1_Strategy and Integrity

2_Environment

3_Employees

Disclosures

4_Products and Supply Chain

Comment

Reference

Child Labor
103 / 408

Management Approach

408-1

Operations and suppliers at significant risk for incidents
of child labor

9–12; 30; 60–61
http://voith.com/corp-de/coc-english.pdf
http://voith.com/us-en/brochures_modern_slavery_en.pdf
Voith did not receive reports of any significant
incidents in the reporting period.

62

Forced or Compulsory Labor
103 / 409

Management Approach

9–12; 30; 60–61
http://voith.com/corp-de/coc-english.pdf
http://voith.com/us-en/brochures_modern_slavery_en.pdf

409-1

Operations and suppliers at significant risk for incidents offorced or compulsory labor

Voith did not receive reports of any significant
incidents in the reporting period.

62

103 / 410

Management Approach

We ensure our employees are protected
mainly by working together with external
service providers. Like all our service
providers, they are subject to Voith’s General
Purchasing Conditions. Like Voith’s own
security personnel, they are likewise obligatedto comply with the Code of Conduct.

http://voith.com/corp-de/coc-english.pdf
http://voith.com/us-en/brochures_modern_slavery_en.pdf

410-1

Security personnel trained in human rights policies
or procedures

Security service providers are obligated tosupport compliance with the Code of Conduct
by suitable means. Voith does not currently
have any data on training held by our service
providers.

Fact base: Compliance Guidelines for External Security
Personnel (77)Security Practices

Human Rights Assessment
103 / 412

Management Approach

9–12; 30; 60–61
http://voith.com/corp-de/coc-english.pdf

412-2

Employee training on human rights policies or procedures

10; 62
Fact base: Compliance Training (77)Fact base: Scope of Training (111)412-3

Significant investment agreements and contracts that
include human rights clauses or that underwent humanrights screening

Global respect for basic human rights isenshrined in our Code of Conduct. All
investment decisions are subject to this code.

73

1_Strategy and Integrity

2_Environment

3_Employees

Disclosures

4_Products and Supply Chain

Comment

Reference

Supplier Social Assessment
103 / 414

Management Approach414-1

New suppliers that were screened using social criteria

9–12; 60–63
When reviewing existing and new suppliers,
Voith always takes their working practices into
consideration. A separate evaluation of thepercentage of new suppliers that have beenreviewed is not available.

Public Policy
103 / 415

Management Approach

9–12

415-1

Political contributions

13–14

Customer Health Safety
103 / 416

Management Approach

42–43; 47; 58–59

416-1

Assessment of the health and safety impacts of productand service categories

42–43; 47; 58–59

416-2

Incidents of non-compliance concerning the health andsafety impacts of products and services

Voith did not receive reports of any significant
incidents in the reporting period.

Customer Privacy
103 / 418

Management Approach

418-1

Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data

12
Voith did not receive reports of any significant
incidents in the reporting period.

Socioeconomic Compliance
103 / 419

Management Approach

419-1

Non-compliance with laws and regulations in the socialand economic area

9–12
Voith did not receive reports of any significant
incidents in the reporting period.

Fact base2019

n. s. = not significant; n. a. = not available
n. d. = no data; n. r. = not recorded

75

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

1. Strategy and Integrity
1.1 Our Profile
Economic Indicators

Key Economic Figures in € millions

FY 2018 / 19

FY 2017 / 181)

FY 2016 / 17

4,276

4,209

4,224

Operating result before non-recurring items

174

153

225

Income before taxes

147

157

694

4,276

4,209

4,224

Operating costs

1,006

1,066

1,040

Employee wages and benefits

1,479

1,441

1,408

Payments to providers of capital

39

26

76

Revenues

Direct Economic Value Generated and Distributed in € millions
Direct economic value generated (= revenues)
Economic value distributed

Payments to government

57

67

82

Community investments

n. d.

n. d.

n. d.

Economic value retained

72

49

612

1,220

1,189

1,159

260

252

240

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Voith Hydro

1,147

1,103

1,381

Voith Turbo

1,398

1,302

1,283

Voith Paper

1,660

1,746

1,527

Expenditures for Employees in € millions
Wages and salaries
Social security contributions, retirement pensions, and assistanceBusiness Area Portraits in € millions
Revenues

Voith Digital Ventures

2)

Germany

62

40

13

709

563

558

Europe

1,184

1,185

1,096

Americas

1,213

1,067

1,195

Asia

1,032

1,253

1,111

Other

138

141

264

50

61

106

EBIT

3)

Voith Hydro
Voith Turbo

76

75

91

Voith Paper

111

102

107

Voith Digital Ventures2)

−22

−35

–43

Data provided for the 2017 / 18 fiscal year were corrected retrospectively.
Independent segment only since 2016 / 17; previously in process of being established.
3)
EBIT adjusted for non-recurring items replaces profit from operations, stated in previous years as the central performance indicator for operating results; previous year's figure is adjusted; the 2016 / 17 figure is Profit from operations.
1)

2)

76

1_Strategy and Integrity

Economic Indicators

2_Environment

3_Employees

Taxes paid by region in € thousands
TotalInternational Focus

4_Products and Supply Chain

FY 2018 / 19

FY 2017 / 18

FY 2016 / 1757,00067,00093,036

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Locations by Regional Distribution
Sales Markets in %Germany

17

13

13

Europe excluding Germany

28

28

26

Americas

28

26

28

Asia

24

30

27

Other

3

3

6

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Germany

709

563

n. d.

China

590

780

n. d.

Main sales markets by country in € millions

77

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

1.2 Strategy and Organization
Memberships and Association

Voith and its Group companies represent their interests through approx. 570 different association memberships, on which we spend around € 2.1 million(previous year: around € 2.2 million) annually on membership fees.
Verband Deutscher Maschinen- und Anlagenbauer e. V. (VDMA)(German Engineering Federation)• Südwestmetall Verband der Metall- und Elektroindustrie Baden-Württemberg e. V.
(SWM) (Baden-Württemberg Employers’ Association of the Metal and Electrical Industry)• FVA Forschungsvereinigung Antriebstechnik e. V.
(Research Association for Power Transmission Engineering)• Deutsches Institut für Normung e. V. (DIN) (German Standards Institute)•

Verband der Bahnindustrie in Deutschland e. V. (VDB)(German Railway Industry Association)• Förderkreis der Deutschen Industrie e. V.
(Society for the Advancement of German Industry)• International Hydropower Association (IHA)• Paper Machine Clothing Association• National Hydropower Association•

1.3 Values and Compliance
Compliance Training

Number of Employees who Underwent Further Training

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Management from the upper four levels, new managers at the Voith Academy,
Sales, Sourcing (1 day)

604

949

542

Decentralized training by compliance officer (1.5 hours)

600

1,095

1,479

Instruction by supervisor (0.5 hours)

956

1,659

2,699

Compliance officers (2 days)

18

17

34

Management from the upper four levels, new managers at the Voith Academy,
Sales, Sourcing (1 day)

29

34

23

Decentralized training by compliance officer (1.5 hours)

n. r.

n. r.

n. r.

2

2

2

Employees trained in compliance in %

100

100

100

Compliance officers trained in %

100

100

100

Number of Training Sessions

Compliance officers (2.5 days)

Compliance Guidelines forExternal Security Personnel

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

Escalation Paths•

Compliance Officer
Group Division Compliance Officer• Compliance Committee• Corporate Board of Management• Supervisory Board•

Breaches of Compliance
Regulations

Compliance-Helpdesk Number

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

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

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

78

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

1.4 Responsibility for Society
Donations and Sponsorship

Donations and Sponsorship in € millions

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Voith Group

2.27

1.64

2.95

of which donations

1.23

0.71

1.91

of which sponsorships

1.04

0.93

1.04

Education

49

28

54

Social affairs

8

12

9

Sport

39

52

32

Culture4

7

3

Germany

88.0

83.6

85.7

Europe excluding Germany

6.0

1,5

5.9

Americas

3.0

3.8

3.1

Asia

3.0

8.3

3.8

Other

0.0

2.8

1.5

Sponsorship Aid by Project in %Sponsorship Aid by Region in %Donations and Sponsorship for
Political Parties and Party-political
Organizations

Financial Contributions to Political Organizations in € thousands

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Germany0050Europe excluding Germany

0

0

0

Americas

0

0

0

Asia

0

0

0

Other

0

0

0

Total

0

0

50

In accordance with the specific Group Directive, donations to political parties and comparable party-political organizations, as well as sponsorships for theactivities of such political parties and organizations (e.g. events, campaigns, etc.), always require the explicit approval of the Corporate Board of Managementof Voith GmbH & Co. KGaA.

79

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

2. Environment
2.1 Environmental Management Approach
2.1.1 Operational Environmental Protection
Certifications

Existing Voith-location Certifications1) Number

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

ISO 50001

9

9

n. r.

ISO 14001

64

55

56

ISO 9001

69

63

64

OHSAS 18001

63

59

57

ISO 50001

19

21

n. r.

ISO 14001

81

77

77

ISO 9001

74

81

81

OHSAS 18001

81

78

78

Degree of Coverage based on Employees in %Work Materials and Hazardous
Materials Approval Process

In principle, before we introduce any new work materials or hazardous materials they first undergo a central and a local approval process.
First, specific material-related information and a safety data sheet for the material to be approved are drawn up and logged. The material-related information isthen checked to see whether the material has already been recorded in the central hazardous materials database. If not, it is entered into the database.
This is followed by the central approval process in which a systematic and automated check is made against applicable legal regulations (e.g. the ECHA
Candidate List or REACH annexes).
Thanks to prior central approval, downstream local approval can focus on workplace and site-specific topics (e.g. water protection area, local regulatory
requirements, storage location, on-site transportation, disposal). This means that the use of centrally approved materials can still be blocked at a local level for
location-specific reasons.

2.1.2 Efficient Use of Resources
Environmental Goals

Hot-spot Analysis Methodology

1)

Environmental Goals in %FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Reduction in specific energy consumption compared to 2011 / 12

–22.1

–17.6

–14.8

Reduction in specific freshwater consumption compared to 2011 / 12

–40.3

–34.3

–34.1

Reduction in specific waste volume compared to 2011 / 12

–19.5

–23.7

–31.6

When conducting a hot-spot analysis, the consumption of each control and analysis level (i.e. region, Group Division, location, system, process) is determinedand displayed graphically. Data is prepared both according to physical consumption and by associated cost, bringing transparency to “hot-spots” with highconsumption levels and costs. Based on this, we develop and approximately evaluate project ideas before gradually developing them further using a stage-gateprocess through to implementation. As part of this, we employ economic and environmental evaluation criteria, in accordance with our Green Controlling cycle.
We regularly review the distribution of consumption based on changing patterns and general conditions (location activities, economic activity, changes to the fleet
of machines and plant, etc.).

Up to and including 2017 / 18 certification related exclusively to production locations; since 2018 / 19 we have included all company locations.

80

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

2.2 Performance in the Reporting Period
2.2.1 Energy Efficiency and Greenhouse Gas Emissions
Energy-saving Measures andFurther Potentials

Reduction in Energy Consumption as a Direct Consequence of Conservationand Efficiency Drives in MWh
Reduktion des Energieverbrauchs

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

17,40522,964

9,789

In the reporting period, amongst others the following savings were achieved:
10 GWh / a (3.470 t CO2e / a) through energy-efficiency projects focused on space-heating and building-heating systems, in particular in Heidenheim,
Shanghai, Crailsheim, Högsjö and Sonthofen• 2.6 GWh / a (680 t CO e / a) through switching over energy sources in Ipoh and São Paulo2• 1.4 GWh / a (700 t CO e / a) through efficiency gains in production and finishing processes, in particular in Shanghai, Heidenheim, Garching and Crailsheim
2• 950 MWh / a (300 t CO e / a) were replaced by renewables projects in Crailsheim and Sonthofen
2• 860 MWh / a (350 t CO e / a) through lighting projects, in particular in Heidenheim, Kunshan, Salzgitter and Garching2• 760 MWh / a (330 t CO e / a) through compressed air projects in São Paulo, Karawang, Kiel and Shanghai
2•Energy Saving Potential in GWh
Energy saving potential since FY 2011 / 12of which achieved in the FY
savings already achieved since FY 2011 / 12

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

135.3

130.8

123.7

17.4

23.0

9.8

125.2

106.3

83.4

Method: Measures in scope on the location level are checked by the respectively responsible Ecological Business Manager for their effectiveness. Measurescontrolling is carried out centrally via a measures tool. A regular exchange between the Ecological Business Management experts serves to identify further
potentials, compare processes, define benchmarks and implement the respective optimal solutions at Voith through sharing best practices.
Energy Consumption:
Total

Total Energy Consumption in MWh

484,656

502,370

522,528

Production-related energy consumption

420,040

432,237

452,265

Business travel

47,78952,64853,066

Logistics

16,82817,485

17,197

Scope 1

30

30

30

Scope 2

61

61

60

Scope 39

9

9

Total Energy Consumption in %Data-gathering: The required unit of data is gathered, validated, and evidenced centrally each month by means of a data-gathering process at the locations.
The units are converted in the database. Energy use (total, renewable, non-renewable); total biomass + renewable energy sources; total energy use for own
fleet from non-renewable energy sources was 1,744,763 FY.

81

1_Strategy and Integrity

Direct Energy Consumption:
Scope 1

2_Environment

3_Employees

4_Products and Supply Chain

Direct Energy Consumption (Scope 1) in MWh

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

123,408

125,723

136,539

Direct energy consumption of the Voith vehicle fleet

22,15722,491

22,492Company cars1)

5,329

5,005

5,295

Logistics

Direct energy consumption in production

16,82817,485

17,197Natural gas in %

81

82

83

Heating oil in %

4

5

4

Diesel in %

5

6

6

LPG in %987

Biomass / biogenic energy sources in %

1

–

–

<1

<1

<1

0

0

0

Other renewable energy sources and captive generation of renewable energy
Other

Data-gathering: The required unit of data is gathered, validated, and evidenced centrally each month by means of a data-gathering process at the locations.
The units are converted in the database.
Indirect Energy Consumption:
Scope 2

Indirect Energy Consumption (Scope 2) in MWh

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Indirect energy consumption(purchased and captive, only if the fuels are not included above)

296,632

306,514315,726

Electricity

233,005

237,354242,735

Long-distance heating

56,173

61,33863,774

Steam

7,454

7,822

9,216

288

346

125

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

42,46047,642

47,771

Rail in %

1

1

<1

Car (not belonging to the Voith fleet, e.g. rental cars) in %

7

7

7

Energy soldIndirect Energy Consumption:
Scope 3

Indirect Energy Consumption (Scope 3)
Business travel in MWh

Flight (short-distance) in %

4

4

2

Flight (long-distance) in %

89

88

90

Logistics (upstream and downstream) in MWh

n. a.

n. a.

n. a.

Rail in %

n. a.

n. a.

n. a.

Truck in %

n. a.

n. a.

n. a.

Ship in %

n. a.

n. a.

n. a.

Flight in %

n. a.

n. a.

n. a.

Note: Logistics data are gathered via external logistics service providers. However, these data are not reported here due to a reengineering of the existingprocess in the reporting year. We are working on making this data reportable next year, and are checking the data gathering process for further Scope 3
emissions.
1)Company cars do not include: taxis, employees’ personal cars, rental cars.

82

1_Strategy and Integrity

Production-related
Energy Consumption

2_Environment

3_Employees

4_Products and Supply Chain

Specific Production-related Energy Consumption (Scope 1 and 2)
in MWh / € million revenues
Specific energy consumption (Scope 1 and 2) /revenues

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

98.1

102.7

107.1

Production-related Energy Consumption (Scope 1 and 2) by Region
Total energy consumption in MWh

420,040

432,237

452,265

Germany in %

35.9

36.1

35.9

Europe excluding Germany in %

12.5

12.6

13.2

Americas in %

32.1

31.4

32.0

Asia in %

19.4

19.8

18.8

Other in %

0.1

0,1

0,1

Reduction in production-related energy consumption versus previous year

–2.8

–3.5

0.2

Reduction of direct energy consumption

–1.8

–7.1

–4.5

Reduction of indirect energy consumption

–3.2

–1.9

2.3

Heating and cooling energy

30.3

30.5

31.1

Paper machine clothing production

25.5

25.2

26.2

Machine tool operation

5.5

4.2

3.8

São Paulo foundry

6.3

6.0

5.8

Proportion of direct energy

29.4

29.1

30.2

Proportion of indirect energy

70.6

70.9

69.8

Reduction of Production-related Energy Consumption in %Key Drivers of Energy Consumption in %Proportion of Direct andIndirect Energy

Renewable Energies

Electricity Mix

Direct and Indirect Energy in %Energy from Renewable and Non-renewable Resources in %Proportion of direct energy

24.9

21.5

19.2

Proportion of indirect energy

75.1

78.5

80.8

Renewable resources

44.5

38.5

35.4

Non-renewable resources

55.5

61.5

64.6

Electricity Mix in %

83

1_Strategy and Integrity

GHG Emissions
Recording Methodology

2_Environment

3_Employees

4_Products and Supply Chain

In gathering data on GHG emissions, Voith follows the guidelines of the Greenhouse Gas (GHG) Protocol. With the aid of conversion factors, data on GHG
emissions such as CH4, N2O, HCF, PFC and SF6 are gathered, recorded and integrated as CO2 equivalents.
Data are recorded and gathered monthly on all material direct energy consumption sources in management scope. In 2018 / 19 the overall level of coverage
was 90 % of total energy consumption. At smaller locations outside management scope, data on annual energy consumption by consumption source isgathered at irregular intervals. Based on the development of employee headcount the energy consumption figures given are adjusted for the respective
reporting year. In addition, we derive consumption-per-capita rates, differentiated by office and service units. Based on these rates we produce estimates forour smallest organizational units. This consumption is indexed by energy-consumption source according to the consumption index for our smallest organizational units.
The applicable emissions factors for direct energy consumption are taken from Defra publications or Voith's own GaBi database, according to their availability.
Our locations can adjust them for location-specific factors (e.g. for LGP or natural gas) if they provide the corresponding proof, thus contributing to raisingcalculation accuracy. The GHG impact of refrigerant emissions is also calculated. The consumption levels and GHG impact of refrigerants is recorded globallyfor 17 different refrigerants (R-11, R-12, R-123 etc.).
The GHG emissions of indirect sources of energy consumption are calculated both on a location-specific and on a market-specific basis. The emissions
factors and the underlying grid mix are reported and documented annually by those locations in management scope, based on the data supplied by therespective energy utility. The market-based data reported under this method are compared centrally with location-based data from the IEA, checked forplausibility, and validated. Ecological Business Management acts in a consultancy function to the locations, for instance at locations with complex energy
sourcing through contracting or self-generation. Integrating location-based factors provides an additional control of the reported market-based factors. In thereporting year the difference between the location-based and market-based GHG emissions was 3,396 t CO2e. Here, the location-based GHG factors wereslightly higher on average than the market-based factors.
The data-gathering and recording process as well as the level of coverage of Scope 3 emissions are currently being reengineered. Data on GHG emissions
from business travel are gathered and calculated on the basis of the kilometers flown, driven (e.g. in rental cars), or traveled by train, as recorded and reported
by Voith's travel agency. The emissions factors are taken from the German Federal Environment Agency database ProBas. Logistics data are gathered via theexternal logistics services providers; however, in view of the current process reengineering in the reporting year, they are not reported here.

GHG Emissions

Greenhouse Gas Emissions in t CO2eq

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Total energy consumption

144,338

166,240

174,227

Production-related energy consumption

128,703

147,035

155,048

Business travel

12,125

14,324

14,397

Logistics

3,509

4,882

4,783

Scope 1

21

18

19

Scope 2

72

72

73

Scope 38

8

8

127,663

144,466

153,376

Germany in %

29

29

28

Europe excluding Germany in %

4

4

5

Americas in %

27

26

28

Asia in %

40

41

39

Other in %

0

<1

<1

Total energy consumption in %Production-related Greenhouse Gas Emissions (Scope 1 and 2) by Region
Total GHG emissions in t CO2eq

84

1_Strategy and Integrity

GHG Emissions:
Scope 1

2_Environment

3_Employees

4_Products and Supply Chain

Direct Greenhouse Gas Emissions (Scope 1)

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Direct energy consumption in production in t CO2eq

23,62824,41926,441

Direct energy consumption of the Voith vehicle fleet in t CO2eq

6,068

6,149

6,095

Company cars1)

1,366

1,267

1,312

Logistics

4,701

4,882

4,783

Volatile greenhouse gas emissions in t CO2eq

1,040

2,569

1,673

Natural gas in %

78

78

79

Heating oil in %

5

6

6

Diesel in %

6

8

7

LPG in %1087

Biomass / biogenic energy sources in %

<1

–

–

Other renewable energy sources and captive generation of renewable energy in %

–

–

–

Other in %

–

0

0

Note: In FY 2016 / 17 volatile GHG emissions were recorded for the first time as production-related emissions.
GHG Emissions:
Scope 2

Indirect Greenhouse Gas Emissions (Scope 2) in t CO2eq

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Indirect energy consumption(purchased and captive, only if the fuels are not included above)

104,035

120,047

126,934

Electricity

85,382

99,873104,969

Long-distance heating

14.38915.795

16,469

Steam

4,264

4,379

5,495

161

194

70

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

11,633

13,057

13,084

<1

<1

<1

7

8

6

Energy sold
GHG Emissions:
Scope 3

Indirect Greenhouse Gas Emissions (Scope 3)
Business travel in CO2eq
Rail in %Car (not belonging to the Voith fleet, e.g. rental cars) in %Flight (short-distance) in %

4

4

2

Flight (long-distance) in %

89

89

92

Logistics (upstream and downstream) in t CO2eq

n. a.

n. a.

n. a.

Rail in %

n. a.

n. a.

n. a.

Truck in %

n. a.

n. a.

n. a.

Ship in %

n. a.

n. a.

n. a.

Flight in %

n. a.

n. a.

n. a.

Note: Only the stated sources of energy consumption and GHG emissions have so far been able to be recorded with reference to Scope 3. We are working toinclude other material sources of energy consumption and GHG emissions in our calculations.
We gather logistics data via our logistics service providers. To be able to provide even more accurate statements regarding transport-related CO2 emissions
differentiated by mode of transport in tonne-kilometers, Voith has decided to develop new calculation methodologies in collaboration with its external service
providers and partners. We currently plan to present the results by the end of FY 2020 / 21 and have therefore decided not to publish any logistics data for thereporting year.
1)Company cars do not include: taxis, employees’ personal cars, rental cars.

85

1_Strategy and Integrity

GHG Emissions: Specific(Scope 1 and 2)

2_Environment

3_Employees

4_Products and Supply Chain

Specific Production-related Greenhouse Gas Emissions (Scope 1 and 2)
in t CO2eq / € million revenues

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

29.8

34.3

36.3

6,003

7,367

7,456

Reduction in production-related CO2e emissions versus previous year in %

–11.6

–5.8

1.9

Reduction in direct CO2e emissions in %

–3.2

–7.6

–13.5

Reduction in indirect CO2e emissions in %

–13.3

–5.4

5.7

Specific greenhouse gas emissions (Scope 1 and 2)
GHG Emission
Reduction Measures

Reduction in Energy Consumption as a
Direct Consequence of Conservation and Efficiency Drives
Reduction in GHG emissions in t CO2eq
Reduction in Production-related CO2eq Emissions

See energy consumption reduction measures.
Emissions from Business Trips

Wherever possible we avoid taking unnecessary business trips, which is why we are increasingly using video and telephone conferencing in our globalorganization to save on travel expenses and allow speedy coordination.
Furthermore, every quote provided by our travel agency partner automatically shows the CO2e emissions generated by a particular means of transport,
providing transparency to Voith travelers when choosing their means of transport in terms of CO2e emissions.
In addition we predominantly lease the vehicles in our vehicle fleet, and we replace them every three years with the next generation of lower-emission vehicles.
In the reporting period we reduced long-haul flights by 10.0 % to 69.1 million km (previous year: 77.2 million km). Business travel kilometers by road in private
or leased cars declined by 16 % to 5.0 million km, while kilometers driven in our own vehicle fleet and the volume of business travel by rail did not change
significantly versus the previous reporting year (see GHG emissions by scope).

Emissions Trading

Voith does not participate in the European emissions trading scheme.

86

1_Strategy and Integrity

Air Pollutants

2_Environment

3_Employees

4_Products and Supply Chain

Air Pollutants1) in t
Chlorofluorocarbons (CFCs)2)
Hydrochlorofluorocarbons (HCFCs)

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

<1

<1

<1

<1

<1

<1

Halon2)

n. s.

n. s.

n. s.

Methyl bromide (CH3Br)2)

n. s.

n. s.

n. s.

Volatile organic compounds (VOC)

399

730

689

2)

Non-methane volatile organic compounds (NMVOCs)

35

162

135

Persistent organic pollutants (POPs)

n. s.

n. s.

n. s.

Hazardous air pollutants (HAPs)

24

26

27

Dust emissions

163

200

197

Respirable fraction

138

154

151

3

3

3

Nitrogen oxides (NOx)

278

640

592

Sulfur oxides (SOx)

350

521

490

Sulfur hexafluoride (SF6)

<1

<1

<1

Heavy metals

n. s. = not significant
The indicators for other air pollutants are calculated, based on LCI conversion factors, from the reported energy consumption, logistics and business-travel data.
Other air pollutants from energy consumption sources generally dominate. We additionally gather data on emissions from refrigerants, solvents, heavy metals, anddust from non-energy based production processes.
In the reporting year, significant sources of VOC emissions were business travel at 85 t (previous year: 89 t), while production-related VOC emissions of 52 t
(previous year: 70 t) were a major contributor to NMVOC emissions. NMVOC emissions arise in approximately equal measure from coatings, painting, andcleaning processes; the decline in this emissions indicator is due to an improved materials separation process, in particular at our locations in China.
Regarding dust emissions, a single major source at 18 t (previous year: 19 t) is our foundry in São Paulo, Brazil. Dust emissions arise mainly from steel
conversion, which is not affected by the local decline in production.
2.2.2 Material Efficiency and Waste
Materials Used

Materials Used by Weight in t

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Total materials / raw materials used

197,962

215,003

220,001

Raw material

63,96860,89257,305

Semifinished products

107,327

133,020

143,147

Packaging

21,94916,521

14,437

Auxiliaries

4,718

4,570

5,111

Renewable materials in %

11

8

6

Secondary raw materials in %

42

38

38

Voith employs country-specific recycling factors to calculate the proportion of secondary raw materials in terms of the overall amount of materials used.

1)2)

 roduction-related energy consumption was recorded as well as air pollutants from the transport of goods and business travel.
P
Ozone-degradable substances in t CFC-11e.

87

1_Strategy and Integrity

Waste Volume

2_Environment

3_Employees

Waste by Region in %4_Products and Supply Chain

FY 2018 / 19

FY 2017 / 18

FY 2016 / 171)

35

38

39

Germany
Europe excluding Germany

6

7

7

Americas

38

31

32

Asia

20

24

23

Other

<1

<1

<1

23,21623,167

20,819Reclaimed and Removed Waste by Method in t
Reclaimed waste
Reused

200

227

122

Recycled

18,575

18,125

15,761

Composted

200

207

185

Recovered

3,878

4,212

4,230

Other reclamation

363

396

521

Removed waste

13,47910,905

9,896

Incinerated

3,098

3,339

2,885

Dumped at an external site

10,381

7,566

7,011

–

–

Dumped at a company site
Other removal––

36,76634,13630,786

Reduction in Specific Waste Quantities

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Reduction in specific waste quantities in %

5.9

11.2

–16.2

8.6

8.1

7.3

Total waste
Note: Alongside the type of waste, the locations also enter the manner of disposal in our database.
Waste Saving Measures andFurther Potentials

Specific Waste Weight
Specific waste weight in t / € million revenues

The individual locations work continually towards specific solutions to overcome local challenges regarding waste. For instance, in some countries poolingsolutions for palettes are unattractive due to low order volumes. Here, reusable or repairable palettes are transferred to local processing providers where
possible, to achieve a high standard of reusable materials. At other locations, cardboard packaging is transformed onsite into product packaging to enable
the safe delivery of our products to the customer.
In the reporting period the following waste savings were achieved, amongst others:• 240 t / a through reductions in grinding sludge and coolant lubricant emulsion through process improvements at our locations in Dongying, Liaoyang,
Karawang and Weißenborn• 200 t / a in polymer and synthetic materials waste through process improvements at our locations in Shreveport, Summerville and Florence• 32 t / a in waste packaging through the reuse of transport crates at our at our São Paulo location
Material Efficiency Potential in t
Efficiency Potential Since FY 2011 / 12of which achieved in the FY
savings already achieved since FY 2011 / 12

1)

Data provided for the 2016 / 17 fiscal year were corrected retrospectively.

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

9,188

9,021

6,044

266

4,174

640

8,808

8,596

4,423

88

1_Strategy and Integrity

Hazardous Waste

Waste Disposal

2_Environment

3_Employees

4_Products and Supply Chain

Hazardous and Non-hazardous Waste in t

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Hazardous waste

7,047

6,084

5,816

transported hazardous waste

7,047

6,111

5,816

imported hazardous waste

–

–

–

exported hazardous waste

–

–

–

waste transported nationally and internationally between Voith locations

–

–

–

Non-hazardous waste

29,72028,053

24,970Total waste

36,76634,13630,786The collection of hazardous waste at Voith is governed by internal regulations. Only qualified specialist waste disposal companies that adhere strictly to ourregulations are permitted to dispose of our waste. Any violations are rigorously pursued and lead to termination of the business relationship. To check this,we regularly audit the waste disposal companies we use. The scope of these audits includes inspections of the waste disposal companies’ sites and related
plants, as well as the collection and documentation of proof of disposal.

2.2.3 Water
Water Consumption

Water Consumption by Source in m³
Total water withdrawal
Freshwater (< 1.000 mg / L Total Dissolved Solids)

1)

Surface water
Groundwater1)of which public as well as private water treatment plants

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

956,219

1,033,788

1,042,539

955,620

1,032,913

1,040,967

67,12864,54467,507493,133

470,508

442,722395,360

497,861

530,738––

other water (>1.000 mg / L Total Dissolved Solids)
Data-gathering: Categories are gathered centrally by means of a data-gathering process at the locations.

1)

Fresh water figures for FY 2015 / 16 have been retroactively corrected (approx. +40,000 m3). The geothermal water in Heidenheim has not been reported in the past.

89

1_Strategy and Integrity

Water Consumption

2_Environment

3_Employees

4_Products and Supply Chain

Water Consumption by Region in %FY 2018 / 19

FY 2017 / 18

FY 2016 / 171)

46

43

40

Europe excluding Germany

12

10

11

Americas

18

16

20

Asia

23

30

29

Other

1

1

<1

Reused water in m³

25.5

44.5

104.2

Reused water in % of total water withdrawal

<1

<1

<1

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

0.22

0.25

0.25

806

815

817

0

<1

83

799

789

789

Germany

Percentage and Total Volume of Reused Water

Data-gathering: Categories are gathered centrally by means of a data-gathering process at the locations.
Freshwater Savings
Measures andFurther Potentials

Specific Freshwater Consumption in m³ / € thousand revenues
Specific Freshwater Consumption

Among other achievements, the following savings were realized in the reporting year:• 58,500 m³ / a through leakage management and improvements to the sanitary system at our Shanghai location• 4,300 m³ / a through process improvements to vacuum pumps at our Kunshan location• 800 m³ / a by closing a water cycle at our Austell location
Freshwater Efficiency Potential in 1,000 m³
Efficiency potential in planning since FY 2011 / 12of which additionally achieved in the FY
savings already achieved since FY 2011 / 12

Note: The savings achieved so far since FY 2011 / 12 are already above the volume of savings which Voith anticipates it needs in order to achieve its
reduction goal in FY 2018 / 19.

1)

Figures for FY 2016 / 17 have been retrospectively corrected.

90

1_Strategy and Integrity

Wastewater by Method ofDischarge and Quality

2_Environment

3_Employees

Wastewater by Method of Discharge

4_Products and Supply Chain

FY 2018 / 19

FY 2017 / 18

FY 2016 / 171)

821,902844,126

860,395

Discharged into the public sewage system in %

51.5

62.0

63.0

Discharged into surface water in %

48.0

25.0

27.0

Discharged into groundwater in %

0.5

13.0

10.0

Reused at another company in %

<1

<1

<1

Total treated wastewater in m³

Total wastewater in m³

115,955

160,957

156,192

Discharged into the public sewage system in %

54.9

68.0

69.0

Discharged into surface water in %

43.7

31.0

29.7

Discharged into groundwater in %

1.4

1.0

1.3

Reused at another company in %

–

–

–

Total untreated wastewater in m³

705,947

676,699704,203

Discharged into the public sewage system

50.9

61.0

62.0

Discharged into surface water in %

48.8

23.0

26.0

Discharged into groundwater in %

0.3

16.0

12.0

Reused at another company in %Wastewater Quality2) in t

<1

<1

<1

FY 2018 / 19

FY 2017 / 18

FY 2016 / 171)

Biological oxygen demand (BOD)

9.4

8.2

9.3

Chemical oxygen demand (COD)

31.9

28.7

27.7

Total suspended matter content

9.6

8.1

8.0

Heavy metals

<1

<1

<1

Nitrogen

1.3

1.0

2.0

Phosphorus

<1

<1

<1

Note: Monitoring processes to measure and control locations' wastewater quality are designed to fulfill the respective local statutory requirements. The
existence of monitoring processes is recorded via hse+. Currently 29 % of total wastewater volume is covered by monitoring processes.

1)2)

 ata provided for the 2016 / 17 fiscal year were corrected retrospectively.
D
The emissions in wastewater are based on the volume of wastewater streams from Voith locations subject to monitoring and the respective average of the measured concentrations.

91

1_Strategy and Integrity

Water and Neighboring
Habitat Protection

2_Environment

3_Employees

4_Products and Supply Chain

Location

Wastewater
discharged into

Heidenheim

River Brenz

10 % of wastewater is returned to the natural water cycle.

Garching

Groundwater

95 % of wastewater is returned to the natural water cycle. The water waspreviously used for cooling purposes.

Högsjö
(Sweden)Lake Högsjö

Noida (India)

Yamuna River

Significant1) direct Wastewater discharge in FY 2018 / 19 in %80 % of wastewater is returned to the natural water cycle. The water was previously
used for cooling purposes. The discharged water is subject to strict observation, as
the location is in a water protection zone.

100 % of wastewater is returned to the natural water cycle.
100 % of wastewater is returned to the natural water cycle. We have purificationequipment locally with which the water is treated for discharge. The location is
adjacent to a water protection zone.

São Paulo (Brazil)

Perus River

Wimpassing (Austria)

River Schwarza

FY 2018 / 19

FY 2017 / 18

FY 2016 / 172)

Product and warehousing incidents

45

45

38

Transport accidents: road, rail, inland waterway, sea

n. r.

n. r.

n. r.

45 % of cooling water is returned to the Schwarza.
Environmental Incidents

1)2)

Environmental Incidents (Pollution of Soil, Water, etc.) Number“Significant” is considered to be wastewater discharged to surface water and to groundwater that exceeds 5 % of the total wastewater volume of the observed unit.
Data provided for the 2016 / 17 fiscal year were corrected retrospectively.

92

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

3. Employees
3.1 Employees – Our Aspiration, Our Responsibility
Employee Structure

Consolidation Scope for Employee Numbers1) Number

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Employees Group-wide in FTE (without apprentices)

19,41019,53519,045

Employees Group-wide as a headcount

19,841

19,027

19,267

Employees included in data analysis

19,841

19,027

19,267FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

19,841

19,027

19,267

Women

3,638

3,477

3,415

Men

16,203

15,55015,852

Employees by Gender, Age Group, and Region Number as a headcount2)

Voith Group
Number by Gender

Number by Age< 30 years

2,546

2,435

2,517

30–50 years

10,967

10,45010,714> 50 years

6,328

6,142

6,036

German

7,708

7,539

7,306

non-German

12,133

11,488

11,961

Number by Origin

Number by Regions
Germany

8,133

7,950

7,669

Europe excluding Germany

2,922

2,858

2,879

Americas

3,952

4,133

4,748

Asia

3,395

3,380

3,286

Other

1,439

706

685

Number by Main Countries
Germany

8,133

7,950

7,581

China

2,513

2,549

2,510

USA

1,979

1,906

2,034

India

1,439

706

685

Brazil

1,358

1,590

2,008

Austria

953

933

941

In contrast to the procedure applied in compiling the Annual Report, in the Sustainability Report workforce figures are stated as headcount instead of FTEs. For FY 2017 / 18 consolidated companies are in reporting scope,just as they are for the Annual Report; however, employee-level figures in the workforce master data for the FlowLink and Ray Sono participations will only be available from FY 2018 / 19 onward.
2)
Due to part-time work the regional distribution in headcount and FTE (full time equivalents) differs from the Annual Report.
1)93

1_Strategy and Integrity

Employee Structure

2_Environment

3_Employees

4_Products and Supply Chain

The Group Division Voith Hydro shed 162 jobs in the reporting year in workforce adjustments due to the market situation. Some of those affected found a newrole in other areas of the company or regions. In the Group Divisions Paper and Turbo, employee numbers largely remained constant. In the Digital Ventures
Group Division, the workforce at the end of the fiscal year comprised 2,280 FTE positions (previous year: 2,256 positions). The modest increase in employee
numbers in Digital Ventures is attributable to the acquisition of Pilotfish (32 positions) and the recently founded joint venture TSP OnCare Digital Assets.
Conversely, workforce numbers fell by 73 positions in the central Group areas, where synergies were realized through the optimization of corporate structures.
We utilized every option available, such as deliberate hiring freezes for certain business areas or countries, the targeted use of working-hours accounts, andearly retirement offers where appropriate, to prevent our employees having to face hardship due to job losses. When making headcount reductions, Voith
offers support such as advisory services and severance payments in accordance with local frameworks.
Our core workforce is structured according to the principle of commercial prudence. Workforce flexibility, including the use of temporary employment, enables
us to manage order peaks and therefore to respond quickly and flexibly in markets that can be very volatile. The engagement of employees from external
companies is governed by a Group Directive. In the reporting year, we employed 1,050 staff (previous year: 1,239) through recruitment agencies. The numberof fixed-term employment contracts fell in the reporting year by 2.5 % to 1,945 (previous year: 1,995).

Employees by
Employment Type

Full-time and Part-time Employees by Age and Gender Number
Full-time

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

18,72718,00718,323

Women

2,870

2,766

2,748

Men

15,857

15,241

15,575< 30 years

2,449

2,325

2,456

30–50 years

10,406

9,953

10,199> 50 years

5,872

5,729

5,668

Part-time

1,114

1,020

944

Women

768

711

667

Men

346

309

277

< 30 years

97

110

61

30–50 years

561

497

515

> 50 years
Employees with Temporary and Permanent Employment Contracts by Gender Number
Permanent employment contract

456

413

368

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

17,896

17,032

17,360

Women

3,196

3,033

2,977

Men

14,70013,99914,383

Temporary employment contract

1,945

1,995

1,907

442

444

438

Women
Men

1,503

1,551

1,469

Temporary employees

1,050

1,239

949

Women

227

250

176

Men

823

989

773

94

1_Strategy and Integrity

Employees by
Employment Type

2_Environment

3_Employees

4_Products and Supply Chain

Total Workforce by Employees and Supervised Workers by Gender Number
Employees / workers

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

19,841

19,027

19,267

Women

3,638

3,477

3,415

Men

16,203

15,55015,852

Supervised workers

1,050

1,239

949

Women

227

250

176

Men

823

989

773

In the reporting year Voith employed 1,050 workers through temporary employment agencies (previous year: 1,239). Temporary employment is acommonplace instrument in the sector to meet short-term order peaks.

95

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

3.2 Highly Attractive Employer
Voith in Selected
Employer Rankings

In the reporting period, the respective target groups of the Trendence and Universum studies rated Voith as an attractive employer:• Trendence Study 2020: In the target group “Young Professionals”, Voith achieved 26th place (previous year: 27 th) in the Machinery and Plant Engineering
sector as well as 13 th place (previous year: 22 nd) in the Engineering Services sector. The study related to the year 2019 and involved a total of
120 companies in various industrial sectors.
• Universum Study: In the target group “Young Professionals”, Voith was placed 49th (previous year: 61st), once again finishing in the first half of the total of
140 listed companies in Germany.

Expenditures for Employees

Employee Wages and Benefits in € millions

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Wages and salaries

1,220

1,194

1,165

Social security contributions, retirement pensions, and benefits

259.5

253.1

250.6

Remuneration of the Corporate Board of Management

n. d.

n. d.

n. d.

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Note: See the chapter “Remuneration of governing bodies” in the Annual Report.
Details on Upholding
Employee Rights

Collective Bargaining Agreements in %% of employees covered by collective bargaining agreements

72

81

77

of which in Germany

97

100

100

In accordance with our Code of Conduct and Group Directives, Voith rejects all forms of obstruction to lawful employee representation (such as
obstructing the freedom of association and collective bargaining agreements) and always complies with the respective local legislation.
We view trusting collaboration with employee representatives as a central prerequisite for our company’s long-term success. As such, we always involve
employee representatives in discussions between the Group management, local HR departments, and employees. Within the individual countries, labor
relationships are structured in accordance with national laws, collective wage agreements, and company agreements. Our compliance processes ensurethat agreements are also upheld.
Our Corporate Board of Management or the local management team communicate fundamental changes to employees at all our sites in a timely mannerand at an early stage. To do this, we employ a range of communication channels, particularly our intranet, video and telephone conferencing facilities, aswell as our employee magazines. In Germany, the decision-making process is subject to co-determination if fundamental changes are made with regard to
the company. Implementation of the measures taken is supported by the respective locations’ Works Councils.

96

1_Strategy and Integrity

Diversity in the Management Teamand in the Workforce / Employment
Ratio of People with Disabilities

2_Environment

3_Employees

4_Products and Supply Chain

Employment Ratio of People with Disabilities in %Employment ratio of people with disabilities

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

3.6

3.4

3.3

73

74

77

Diversity in Senior Management Circle Number
Senior Management Circle1)
Proportion of women in %

8.2

6.8

5.2

Non-German members in %

27.4

31.1

35.1

80

80

84

Verteilung von Frauen und Männern auf Managementebenen Number
Corporate Board of Management, Executive Team,
Senior Management Circle1) Number
Proportion of women in %

7.5

6.3

4.8

Non-German members in %

27.5

30.0

33.3

Regional directors / chairpersons, Management Board of operating units, headsof product groups, managers in Group management functions2) Number

367

379

367

Proportion of women in %

6.8

8.2

7.6

Non-German members in %

49.3

49.1

50.7

Mid- and lower-level management3) Number

669

688

715

Proportion of women in %

12.4

11.8

10.6

Non-German members in %

60.1

61.5

60.1

Total (across all management levels) Number

1,116

1,147

1,166

Proportion of women in %

10.2

10.2

9.3

Non-German members in %

54.2

55.2

55.2

Various nationalities Number
Flexible Working Time Models

94

91

88

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Voith Group

12,056

7,950

7,669

Women

2,246

1,510

1,383

Men

9,810

6,440

6,286

< 30 years

1,422

1,027

916

30–50 years

5,850

3,910

3,909

> 50 years

4,784

3,013

2,844

Flexible Working Time Models Number

The figures stated are for all regions. Internationally, flexible working time models are available to employees in most regions. The figures given are forGermany; as a general rule, all Voith employees can agree individual working time models with their supervisor. This also applies to sabbaticals.

Management levels 1 + 2Management levels 3 + 4
3)Management levels 5
1)

2)

97

1_Strategy and Integrity

Parental Leave

2_Environment

3_Employees

4_Products and Supply Chain

Parental Leave Number

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Voith Group

18,413

18,867

19,074

Women

3,505

3,452

3,390

Men

14,90815,415

15,684Voith Group

509

461

668

Women

181

186

139

Employees Entitled to Parental Leave

Total Parental Leave Take-up

Men

328

275

529

Germany

433

384

436

Europe excluding Germany

50

53

39

Americas1)

20

21

190

Asia

2

3

3

Other

4

0

0

Voith Group

370

366

578

Women

86

83

112

Men

284

283

466

Employees Who Returned to Voith After Parental Leave

Employees Who Returned to Voith After Parental Leave Who are Still at Voith 12 Months After Returning
Voith Group

275

345

351

Women

69

43

63

Men

206

302

288

Return-to-work Rate in %Voith Group

72.7

79.4

79.1

Women

47.5

44.6

74.2

Men

86.6

100.0

80.3

Voith Group

74.3

94.3

62.1

Women

80.2

51.8

69.2

Men

72.5

100.0

60.8

Retention Rate Among Employees Who Took Parental Leave in %1)

Until FY 2017 / 18, besides parental leave other inactive employment contracts were also included. The change versus previous years is due to our inclusion of parental leave exclusively since FY 2017 / 18 also for the Americas region.

98

1_Strategy and Integrity

Employment Length

2_Environment

3_Employees

4_Products and Supply Chain

Average Employment Length by Region in years

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Voith Group

12.88

12.61

12.39

Germany

16.55

16.12

16.19

Europe excluding Germany

12.46

12.62

12.41

Americas

10.83

10.73

10.35

Asia

8.08

7.57

7.27

Other

8.30

8.31

8.33

Voith Group

356

356

305

Women

87

73

57

Men

269

283

248

< 30 years

154

144

120

30–50 years

160

153

147

> 50 years

42

59

38

Germany

83

83

36

Europe excluding Germany

59

26

36

Americas

140

161

165

Asia

68

73

61

Other

6

13

7

New Employee Hires Who Left Voith within Twelve Months by
Gender, Age Group, and Region Number

99

1_Strategy and Integrity

Employee Turnover

2_Environment

3_Employees

4_Products and Supply Chain

Employees Who Left the Company by Gender, Age Group, and Region(Workforce Fluctuation) Number

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

1,884

1,983

2,127

Women

373

341

324

Men

1,511

1,642

1,803

< 30 years

399

433

454
1,051

Voith Group

30–50 years

881

981

> 50 years

604

569

622

Germany

366

359

393

Europe excluding Germany

318

268

250

Americas

855

979

1,079

Asia

298

309

328

Other

47

68

77

Voith Group

9.9

10.3

11.0

Women

10.7

9.8

9.5

Men

9.8

10.4

11.4

< 30 years

16.8

17.4

17.7

30–50 years

8.5

9.3

9.7

> 50 years

9.7

9.3

10.5

Employees Who Left the Company by Gender, Age Group,
and Region (Workforce Fluctuation) in %Germany

4.6

4.6

5.2

Europe excluding Germany

11.1

9.3

8.6

Americas

21.2

21.8

22.4

Asia

8.8

9.3

10.0

Other

6.5

9.7

11.3

Voith Group

9.9

10.3

11.0

At the employee’s initiative

3.9

4.3

3.7

At the employer’s initiative

4.9

5.1

6.3

Other

1.1

1.0

1.1

Employees who Left the Company on Own Initiative in %

100

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

3.3 Attracting and Promoting Talent
New Hirings

New Employee Hires by Gender, Age Group, and Region Number
Voith Group
Women
Men

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

1,839

2,151

1,603

381

408

283

1,458

1,743

1,320

< 30 years

751

918

537

30–50 years

857

970

813

> 50 years

231

263

253

Germany

430

675

283

Europe excluding Germany

286

264

174

Americas

713

704

758

Asia

310

409

324

Other

100

99

64

Voith Group

9.3

11.3

8.3

Women

10.5

11.7

8.3

Men

9.0

11.2

8.3

< 30 years

29.5

37.7

21.3

30–50 years

7.8

9.3

7.6

> 50 years

3.7

4.3

4.2

Germany

5.3

8.5

3.7

New Employee Hires by Gender, Age Group, and Region in %Apprenticeships and Opportunities

Europe excluding Germany

9.8

9.2

6.0

Americas

18.0

17.0

16.0

Asia

9.1

12.1

9.9

Other

6.9

14.0

9.3

Apprentices and students at cooperative universities

838

801

959

in Germany

534

519

599

at our Heidenheim location

326

302

360

Vocational Training Number

101

1_Strategy and Integrity

Training and Education
and Career Development

2_Environment

3_Employees

4_Products and Supply Chain

Training and Education Expenditure Number

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Training and Further Education Hours

243,304

266,959

320,324

Women

50,87252,261

63,150Men

192,432

214,697

257,174< 30 years

43,01436,76948,29630–50 years

153,326

164,251

206,913> 50 years

46,96465,93965,115The Corporate Board of Management, Executive Team, Senior Management Circle;
Regional Directors / Chairpersons, Board of Management of operating units, heads ofproduct groups, managers in Group management functions.

11,13014,467

14,335Mid- and lower-level management

17,751

19,893

34,107

214,423

232,599

271,882

Voith Group

12.3

14.0

16.6

All other employees
Hours of Further Education by Employee Number
Women

14.0

15.0

18.5

Men

11.9

13.8

16.2

< 30 years

16.9

15.1

19.7

30–50 years

14.0

15.7

20.3

> 50 years

7.4

10.7

11.5

The Corporate Board of Management, Executive Team, Senior Management Circle;
Regional Directors / Chairpersons, Board of Management of operating units, heads ofproduct groups, managers in Group management functions.

24.9

31.5

31.8

Mid- and lower-level management

26.5

28.9

47.7

All other employees

12.1

12.9

15.0

15,93016,594

15,6452,964,779

3,680,130

5,723,508

Number of Employees Who Underwent Further Training Number
Voith Group
Total Expenditure in €Voith Group
Employees Who Received Performance and Career Development Reviews in %Voith Group

92.1

91.4

82.7

Women

90.4

88.8

83.1

Men

92.6

92.0

82.6

The Corporate Board of Management, Executive Team, Senior Management Circle;
Regional Directors / Chairpersons, Board of Management of operating units, heads ofproduct groups, managers in Group management functions.

87.6

86.3

84.5

Mid- and lower-level management

94.9

93.9

87.7

All other employees

92.2

91.4

82.4

102

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

3.4 Occupational Health and Safety
Approach to Preventing or
Dealing with Negative Healthand Safety Impacts

Regarding our own locations, construction sites, and products, Voith’s approach to preventing negative health and safety impacts is as follows:
1. At our own locations, we employ the occupational health and safety system outlined on an ongoing basis. We are progressively expanding
this proven system of regional support to continuously improve its quality and effectiveness.
2. At our construction sites and during on-site activities with our customers, we perform risk assessments in advance. These are updated on a regularbasis and involve a careful examination of many aspects, including how the various industrial technicians are coordinated in relation to safety
aspects.
3. F
 or our products and their use, we focus right from the product development stage on achieving strict compliance with regulatory requirements. In
addition, our products undergo a range of test and inspection stages. We incorporate the findings from these processes, together with informationfrom market and product monitoring, systematically into the development and enhancement of our products.
To identify and analyze work-related hazards and risks in connection with occupational safety, we have implemented a comprehensive audit system in
addition to our overarching risk management process. In the reporting period we identified heavy-load handling and crane operation as the greatest
HSE risks.

Employee Representationin Committees

Total Number of Employees1) Represented on Health and Safety Management
Worker Committees in %FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

80

80

75

Total occupational accidents

54

52

50

of which fatal

0

2

0

of which severe

3

5

n. r.

Voith Group
Occupational Accidents

Occupational accidents – employees Number

Note: Data on all accidents subject to compulsory reporting were gathered. One occupational accident led to an employee being unfit for work over thetransition from FY 2016 / 17 to FY 2017 / 18. The accident was included in reporting for FY 2017 / 18.
Frequency Rates – employees Number
Definition / Explanation: Number of occupational accidents resulting in downtime (1 day or more) per 1 million working hours.
Occupational accidents per million hours workedof which fatalof which severe1)

Based on headcount.

1.5

1.5

1.4

0

0.06

0

0.08

0.14

n. r.

103

1_Strategy and Integrity

Occupational Accidents

2_Environment

3_Employees

4_Products and Supply Chain

Occupational Accidents – personnel working for Voith but
who are not Voith employees Number
Occupational accidents

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

46

48

n. r.

Note: Since October 2017 Voith has gathered third-party occupational accident data centrally. Each incident is documented in an Incident Report andfollowed up. For these incidents Voith’s Reporting Organization does not currently distinguish between degrees of accident severity, or working hours lost.
Due to the differing data-gathering methods these values are not comparable with the data provided on Voith’s own employees.
Occupational Accidents by Region Number
Voith Group

54

52

50

Germany

33

31

37

Europe excluding Germany

6

9

6

Americas

8

9

7

Asia

5

3

0

Other

2

0

0

Severity Rate
Definition / Explanation: Hours lost per 1 million working hours.
Voith Group

364.4

342.2

271.2

Germany

343.6

303.4

306.3

Europe excluding Germany

121.9

535.5

217.0

Americas

323.5

286.3

159.5

Asia

554.4

364.7

391.9

Other

397.1

0.0

0.0

Absence Rate in %Definition / Explanation: Refers to the actual days of employee absence, expressed as a percentage of the overall scheduled working days for the workforce
over the same period.
Voith Group

2.5

2.6

2.5

Germany

3.9

3.7

3.8

Europe excluding Germany

3,5

3.4

3.2

Americas

1.5

1.7

1.6

Asia

0.9

1.0

1.1

Other

1.5

1.2

1.2

104

1_Strategy and Integrity

Occupational Accidents

2_Environment

3_Employees

Lost Day Rate in %4_Products and Supply Chain

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Definition / Explanation
LDR: The impact of occupational accidents, which can be measured against the time the affected employee failed to appear for work. The rate is calculated
by comparing the total number of lost days with the total number of hours which the workforce ought to have worked in the reporting period.
Working Days Lost: Working days which could not be worked on (and so are “lost”) as one or more employees was / were unable to perform his / her / theirusual work owing to an occupational accident. These days do not count as working days lost if an employee returns for a limited number of hours or for adifferent activity.

Occupational Safety Training

Voith Group

8.8

8.4

7.7

Germany

9.2

8.1

8.2

Europe excluding Germany

3.0

13.4

5.4

Americas

7.5

6.7

3.7

Asia

12.5

8.2

8.8

Other

9.0

0.0

0.0

~ 100

~ 100

~ 100

Training Courses in Occupational Safety in %Operations managers
Administrative managers

80

80

80

Trained service providers

n. r.

n. r.

n. r.

105

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

4. Products and Supply Chain
4.1 Product Responsibility
4.1.1 Management
Research &Development Expenditure

Research & Development in € millions

FY 2018 / 19

FY 2017 / 181)

FY 2016 / 17

R&D Expenditure

213

222

217

Percentage of Revenues Dedicated to R&D in %

5.0

5.3

5.1

Nanotechnology•

Voith Paper: Calender and roll covers in the area of finishings. The NanoPearl coatings represent the latest in calender-cover technology thanks to an improved
nanoparticle filler system. According to the manufacturer’s statement, the quartz particles are produced in situ with the resin and are not released at any
stage of the manufacturing process. When rubbed during use, the particles are still surrounded by plastic and thus pose no hazard. No particles are released inthermal disposal either.
• Voith Turbo: Cooling systems for locomotives, railcars, special vehicles, and high-speed trains. The particular coating process is performed by a service
provider, and currently less than 10 kg of material is in field use.
• Voith Hydro uses no nanoparticles, either in manufacturing processes or in the products themselves.

Approach to Handling
Suspect and Hazardous
Materials

All Voith Group Divisions comply with the relevant rules and regulations for the handling and exclusion of suspect and hazardous materials.
For Voith Hydro, EU Directives are especially relevant, such as the REACH regulation. The centrally managed Group Standardization Department is responsible for implementation of and compliance with the guidelines. During modernization projects, there may be individual cases of old machines containing
asbestos. All applicable rules and regulations are complied with when handling them; specialized companies are commissioned for their proper disposal.
The REACH regulation applies to Voith Paper as well. All free chemical substances included in the REACH list are categorically excluded. When new
substances are added to the list, Voith Paper reviews their use and, where necessary, identifies a harmless substitute which is then tested and introduced.
For Voith Turbo products, the regulations for the handling and categorical exclusion of suspicious and hazardous materials are numerous. For example,
EU regulations such as the REACH regulation, the RoHS directives and German Battery Law (BattG) apply. In addition, there are railway fire protection
standards, the Group’s own specifications on hazardous materials, specific customer requirements, and guidelines from associations such as the Rail Industry
Substance List and the globally standardized IMDC exchange and management system for material data in the automotive industry. Hazardous materials are
avoided or replaced by other materials as early as the engineering phase, wherever technically and economically feasible.

1)

2017 / 18 figures have been adjusted.

106

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

4.1.2 Reliable and Safe Products

Large Hydro

Small Hydro

HyService

Automation(with digital products)

Energy efficiency

very highvery highmediumlow

GHG emissions

high

high

mediumlow

4.1.3 Product Responsibility by Group Division
Impact of individual Voith Hydro product groups on specific sustainability criteria
Further Information on Socialand Environmental Impacts– Voith Hydro

Material efficiency

–

–

–

–

Long service life

very highvery highvery highhigh

Recyclability

high

high

high

high

Upgradability / retrofitting

lowmediumhigh

high

Reparability

very highvery highvery highvery highSafetyvery highvery highvery highvery highSelection: Technologies for Mitigating Socialand Environmental Impacts at Voith Hydro
Technology

Sustainability impacts

Area of application (product group)

Cavitation Erosion Detection: Enables statements on theintensity of material removal and / or damage to affectedcomponents, depending on their operating condition, as wellas the creation of condition-based analysis reports and thederivation of recommendations for action.

•

Improved reparability
Improved upgradability / retrofitting• Improved service life

Condition Monitoring
System / HyService

Optimized design of fish passages: Increased permeabilityof turbines for fish, for example salmon in the USA and eels in
Europe.

•Reduction of negative effects on
the maritime ecosystem

Large Hydro

StreamDiver: Enables the installation of new hydropower plants
under strict environmental conditions at existing dams, locks, andirrigation dams. This enables the utilization of energy potentialthat cannot be tapped with conventional power plant concepts.

•

Improved energy efficiency

Small Hydro

•

107

1_Strategy and Integrity

Further Information on Socialand Environmental Impacts– Voith Hydro

2_Environment

3_Employees

4_Products and Supply Chain

Further Information on the Energy Efficiency and Climate Footprint of Voith Hydro Products
The Voith Hydro product portfolio is clearly oriented towards sustainability. On the path towards climate neutrality, we are continuously working on bringing
products with an ever-smaller CO2 footprint to market. To this end, Voith Hydro has set itself the goal of constantly improving the efficiency – and therefore theenergy efficiency and carbon footprint – of its products. In the product development of all Hydro products, we are constantly working to optimize efficiency.
One example of this is the innovative turbine controller at the small hydro plant in Storr Lochs, Scotland. A compact drive from Voith Turbo has been in operation here since 2017, which was first used in a modified form in a hydro power station. The hydraulic regulation of the turbine controller offers advantages inseveral respects: On the one hand, the new technology has increased the energy efficiency of the plant. On the other, the new controller does not require an
additional pressure accumulator and operates with a very small oil volume, thus reducing environmental impact due to oil losses while increasing plant safety.
Approach to Noise Emissions and Pollution at Voith Hydro
At Voith Hydro, noise emission targets are set on a project basis in the calls for tender. Specifically with regard to noise emissions, Voith Hydro pursues theongoing goal of predicting noise emissions increasingly accurately, and defining necessary measures in advance. In the reporting year, the corresponding
noise reduction measures were initiated and lab-tested.
Furthermore, project-specific KPIs are set to allow noise emissions to be controlled efficiently. Voith’s OnCare.Acoustic smart technology is also used here:
This enables the detection of fluctuations in turbine noise emissions so that appropriate measures can be taken.
Further Information on Product Safety at Voith Hydro
At Voith Hydro, all products must at least meet the safety and health requirements of the relevant EU directives, irrespective of the market area. The
construction rules for all Voith Hydro components and products are defined in corresponding design manuals. Safety tests are always carried out bothduring the manufacturing process as well as during installation and commissioning. For all components and products, a corresponding Inspection andTest Plan defines the specific test criteria, responsibilities, and documentation requirements.
Voith Hydro continues to monitor its products during the utilization phase with regard to potential safety risks and major machine damage. We always adhere
to product liability law and its specifications regarding the active product monitoring obligation. In case of a safety risk or safety-relevant event, Voith Hydro
informs customers immediately as a matter of course and always in accordance with legal requirements.
To ensure our customers enjoy a maximum level of safety, all safety information on Voith Hydro products is also documented in the operating manual.
In addition, Voith Hydro offers customers the following safety training courses through the Voith HydroSchool:
Safety-by-design Principles and Case Studies: In this one-day seminar we train customers on the fundamental safety requirements of hydropower plants
and discuss combined case studies on damage and accidents.
• Application and Fulfillment of EU Directives on Machine and Plant Safety: In this seminar, we share our expertise and provide practical examples toprepare our customers for the complex process of CE marking.
• Training programs tailored for individual customers that can be repeated regularly.
• Mentoring and train-the-trainer programs for sustainable knowledge building at the customer site.
•108

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

4.1.3 Product Responsibility by Group Division

Projects

Products & Services

Rolls and covers

Energy efficiency

mediumhighmedium

GHG emissions

mediummediummediumMaterial efficiency

mediummediumhighLong service life

high

high

high

Recyclability

mediummediumlow

Upgradability / retrofitting

high

high

mediumReparability

mediumhighmediumSafetyhighvery highhigh

Impact of individual Voith Paper Product Groups on Specific Sustainability Criteria
Further Information on Socialand Environmental Impacts– Voith Paper

Selection: Technologies for Mitigating
Social and Environmental Impact
Technology

Sustainability impacts

Area of application (product group)

Holistic asset management system for screen baskets:
RFID-based lifecycle tracking tool enables identification ofwearing parts effectively and reliably, thus improving maintenance targeting and reparability.

•

Improved reparability
Improved upgradability / retrofitting• Improved service life

Products & Services

BioBased Yarn: Currently in development phase; will enable theuse of renewable materials as replacement for petroleum-based
ones for wearing parts for covers, roll covers and shoe press
sleeves.

•

Improved climate footprint

Rollers and covers

HydroSeal components: Enable water savings of more than
27.5 million m3 per year compared with standard technologies,
as well as significant energy savings.

•

Improved energy efficiency
Improved resource andmaterial efficiency

Rollers and covers

Green Pulping Technology: Currently in the development
phase; will enable more energy-efficient pulping systems forrecycled paper.

•

Improved energy efficiency
Improved climate footprint

Projects

ProLube / FilmLube: Fresh water consumption throughlubrication spray pipes is greatly reduced; the moisturecross-profile of the wet felts is significantly more uniform. This
improves the useful life of press felts by up to 30 %.

•Improved reparability
Improved service life

Rollers and covers

Smart-Loop-Technology for water treatment: Cooperation
project with Voith subsidiary meri Environmental Solutions;enables improved cleaning of wastewater from paper factories.

•

Improved environmental compatibility
Improved resource and material
efficiency

Projects

•

•

•

•

•

109

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

4.1.3 Product Responsibility by Group Division

Mobility

Industry

Energy consumption

very highhigh

GHG emissions

highvery highLong service life

high

high

Recyclability

mediumhighUpgradability / retrofitting

mediummediumReparability

mediumhigh

Safetyhighvery highTechnology

Sustainability impacts

Area of application (product group)

AeroMaxx: By using new types of bearings and separating the
lubricating fluid from the cooling oil, energy losses and oil requirements of gearboxes with power generation systems can be reduced
by up to 30 %.

•Improved energy efficiency• Improved climate footprint• Improved material efficiency• Improved environmental compatibility

VT Industry

Railroad diesel engines: A joint project with the Liebherr Group,in the development phase. These meet the latest emissions
standards, offer 23 % more power in the same installation space,and deliver fuel savings of around 8 % versus the competition.

•

Improved energy efficiency
Improved climate footprint• Reduced pollutant emission

VT Mobility

BeltGenius: Digital system for simulating entire conveying systems
in the mining sector. Enables the monitoring, comparison andoptimization of belt conveyors and conveying systems; results in
reduction in plant downtimes and energy savings of up to 10 %.

•Improved energy efficiency
Improved climate footprint• Improved maintenanceand reparability

VT Industry

DIWA NXT: Transmissions for city buses, in development. Enables
fuel savings of 7 % (mechanical optimization) and an additional 9 %due to the optional mild-hybrid system (recuperation unit). Overall,this achieves 16 % reduction in consumption compared to theprevious transmission generation.

•

Improved energy efficiency
Improved climate footprint• Improved passenger comfort

VT Mobility

Pilotfish-Systeme: Cloud-based analysis process including
hardware components for reducing fuel consumption and wear.
Enable optimized fleet management for reduced vehicle deployment, improved vehicle availability, and early damage detection.

•

Improved energy efficiency
Improved climate footprint• Improved maintenanceand reparability

VT Mobility

Impact of individual Voith Turbo product groups on specific sustainability criteria
Further information on Socialand Environmental Impacts– Voith Turbo

Selection: Technologies for improved socialand environmental impact

•

•

•

•

110

1_Strategy and Integrity

Further information on Socialand Environmental Impacts– Voith Turbo

2_Environment

3_Employees

4_Products and Supply Chain

Further Information on the Energy Efficiency and Climate Footprint of Voith Turbo Products
To achieve this, work is carried out in all phases of the product development process (from developing ideas, through the definition, feasibility and development phase, to the validation phase) to improve the energy efficiency and climate footprint of products. The Voith Turbo guideline on sustainability defines theprocedure for developing sustainable products and comprises three stages: Green Design, EcoDesign, and Sustainable Design.
Further Information on the Resource Efficiency of Voith Turbo Products
Voith Turbo constantly works on optimizing the material efficiency of its products, meeting specific customer requirements for product sustainability, andof course, on constantly complying with all regulatory requirements, such as the REACH regulation.
The largest material fractions at Voith Turbo are cast aluminum, steel, and cast iron. Currently, we are working on improving material efficiency in all ofthese fractions.
Within the scope of product development, we work continually to improve the material efficiency of products, above all by integrating modularization andvalue analysis experts. Key levers for improved material efficiency are modularization and standardization work on the one hand, and measures within theframework of the Design to Cost and Design to Value development approaches on the other. For example, the increased use of common parts leads to a
reduction in the number of production tools and machines required, as well as to less scrap, material wastage and less inventory.
As part of our Voith Turbo Engineering Excellence project we are currently investing a great deal of effort in the topic of material costs, and thus also in
cutting the quantities we use. In addition, we are measuring and optimizing waste volumes by reducing the use of materials where these are not requiredfor product functionality.
Approach to Lowering Noise Emissions at Voith Turbo
Voith Turbo also works continuously to reduce its products’ noise emissions. To this end, Turbo aims for constant compliance with the technical specification for interoperability (TSI) relating to the subsystem ‘rolling stock – noise’ (TSI Noise) established under EU Regulation 1304 / 2014, as well as DIN EN ISO
3095 (“Acoustics – Railway applications – Measurement of noise emitted by railbound vehicles”).
Other noise emission standards such as ISO / TR 11688-1 / 2 are also met. Examples are the Silent Vent fan wheel or the bionic gearing of final drives in thefield of drive technology. Bionic toothing was developed to minimize material costs and noise emissions in gear drives, and is already in mass production
and in use in rail-vehicle gear units. It enables a reduction in noise emissions by up to 3 dB(A).
An example of this is a new railcar transmission test stand that allows Voith Turbo to conduct detailed noise measurements, advancing the optimization ofrailcar-transmission noise emissions. An approach to reducing the noise generated by railcar transmissions was also developed.

111

1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

4.2 Responsibility in the Supply Chain
Procurement Markets

Procurement Markets in %FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

Europe56

56

56

Americas

22

27

23

Asia

21

16

20

Other

1

1

1

Approach to Suspicious,
Hazardous and Conflict Materials
in the Supply Chai

The handling of suspicious, hazardous and conflict materials is regulated in a clear and binding way for suppliers in the GPCs (see chapters 13.2 and 13.3).

Country-specific GPCs

Country-specific GPCs in %Scope of Training

Country-specific GPCs

33

of which new

4

3

5

of which updated

1

none

all

~ 500

~ 500

528

almost allalmost all

528

1,850

1,514

3,629

Purchasing employees trained
Hours of training of Purchasing employees (Purchasing Training Program)
Hours of training of Purchasing employees
Suppliers Who Have Filled Out a Self-assessment Number
Compliance & Sustainability Check of initial self-assessment

1)

26

Training of Purchasing Employees Globally Number
Purchasing employees

Supplier Self Assessment

29

9,397

10,832

12,022

FY 2018 / 19

FY 2017 / 181)

FY 2016 / 17

3,659

3,584

2,547

Initial self-assessment

n. d.

n. d.

n. d.

Share of the invoice volume obtained from suppliers for whom there is a valid
Compliance & Sustainability Check of the initial self-assessment in %

66.0

68.0

55.0

Supplier self-assessment ratio (share of the invoice volume obtained from suppliers
for whom there is a valid self-assessment) in %

n. d.

n. d.

n. d.

 wing to the system migration, in FY 2016 / 17 no new assessments were able to be gathered for 6 months. In addition, questions regarding compliance and sustainability were removed from the initial SupplierO
Self-sssessment and incorporated into a Compliance & Sustainability Check which can now be requested from and confirmed by suppliers as an individual questionnaire.

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1_Strategy and Integrity

Evaluation of Suppliers

2_Environment

3_Employees

4_Products and Supply Chain

Examples of how supplier evaluations are carried out in the Group Divisions are the processes implemented at Voith Hydro and Voith Turbo.
Voith Turbo implemented a multi-step process for the risk assessment of suppliers. In addition to basic risk categories such as creditworthiness, qualityand delivery reliability, competitiveness, and customer structure, the second stage of the process also encompasses additional risks such as geographicallocation, geographical and political risk, and interruptions to supply systems.
Voith Turbo uses the VDA 6.3 Process Audit standard for Supplier Assessments and Supplier Audits. Among other things, it also contains questions aboutoccupational safety and environmental protection: These determine whether the supplier has implemented a system for occupational safety and environmental
protection and whether there is a system in place for implementing the material compliance requirements (EG 1907 / 2006 REACH, or Directive 2011 / 65 /EU ROHS for electronics suppliers).
Voith Hydro intensively checks suppliers for compliance and quality over the entire lifecycle. Prior to inclusion in the supplier database, suppliers are assessed
for integrity (including compliance and HSE criteria), financial stability, and implemented quality systems, as well as experience of and references from working
with other suppliers. Supplementary on-site audits are carried out on suppliers of key power plant components and services; these audits are carriedout jointly by Quality Assurance and the Supplier Development & Support function within Purchasing. To secure the highest quality assurance, Quality
Management always has the last decision in the release process via a veto right.
Efficient transport logistics: In order to be able to make even more precise statements about transport-related CO2 emissions and the distribution of transportmodes by tonne-kilometres in the future, Voith decided to develop new calculation bases in cooperation with its external service providers and partners. By
the end of the 2020 / 21 financial year we would like to present the respective results.
Supplier Evaluations Number

FY 2018 / 19

FY 2017 / 18 2)

Evaluations (individual processes)

1,200

1,115

710

Suppliers evaluated

1,000

916

566

Suppliers audited

n. d.

n. d.

n. d.

Sustainability ratio in %

82.8

87.4

89.7

Supplier evaluation ratio (% of invoice volume by evaluated suppliers)

29.0

49.0

36.0

Invoice volume with suppliers with a current and approved
supplier evaluation (Invoice volume in € millions)
Supplier Compliance

Supplier Compliance Number
Blocked suppliers

FY 2016 / 171)

n. d.

928

705

FY 2018 / 19

FY 2017 / 18

FY 2016 / 17

13

13

13

Only includes blocks due to violations of compliance and / or sustainability guidelines; excludes blocks owing to bankruptcy or technical quality issues.

 wing to the system migration, in FY 2016 / 17 no new assessments were able to be gathered for 6 months. In addition, questions regarding compliance and sustainability were removed from the initial Supplier Self-sssessment and incorporatedO
into a Compliance & Sustainability Check which can now be requested from and confirmed by suppliers as an individual questionnaire.
2)
Data status as at November 2018
1)

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1_Strategy and Integrity

2_Environment

3_Employees

4_Products and Supply Chain

The Report
Voith has published a Sustainability Report every year since 2009. This reportclarity, which may cause discrepancies between the individual totals given in thedescribes the progress we made in terms of our sustainability in Voith’s 2018 / 19

relevant tables and final Group-wide totals. In individual cases it is not yet possible

fiscal year, i.e. from October 1, 2018 to September 30, 2019.

to derive a three-year trend; however, this is our objective for future reports. In a few
cases, certain key figures already reported relating to previous periods have been

In producing our report we followed the internationally recognized guidelines of theretrospectively updated due to a change in the underlying data basis or calculation

Global Reporting Initiative (GRI). The scope of our report fulfills the requirements ofmethodology. We have indicated this in the report at the corresponding points.

the Core option of the GRI Standards. Our report was not audited externally. In 2018
we carried out an exhaustive stakeholder survey to identify the material sustainability

All forward-looking statements in this report are based on reasonable assumptions

issues and enhance our materiality analysis; this report includes the results.

as at the deadline for report content submission. Due to unknown risks, uncertainties
and other factors, the actual results, developments or performance of our company

Unless stated otherwise, the facts, figures and information provided in this report

may deviate from our forecasts, estimations, and statements.

apply globally to the following Voith Group Divisions: Voith Hydro, Voith Paper, Voith
Turbo, and Voith Digital Ventures. Please refer to the Voith Annual Report for details

For further information please see our Annual Report. For optimal readability weof the Group companies covered. The degree of consolidation comprises at least

refrain from making dual gender-specific references in this report. This is not a value

80 % of the Voith Group by revenue and headcount, and includes all of our Group’s

judgment, and all such references are to be understood as fully gender-neutral.

major locations. While we provide the number of employees in this report in terms ofheadcount, in our Annual Report we give this figure mainly in terms of FTEs (full-time

Further information is provided at www.voith.com and in our Annual Report.

equivalents); this may lead to discrepancies between the figures.

We currently expect to publish our next Sustainability Report in early 2021.

The data gathered for the core figures provided in this report was gathered using
mainly division-specific software. Figures were rounded off to support reporting

Annual Report 2018 / 2019

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1_Strategy and Integrity

2_Environment

Imprint and Contacts

Project Management and Point of Contact forContent-related Questions
Corporate Sustainability
Ulrich Weiße
E-mail: ulrich.weisse@voith.com
Markus Schönberger
E-mail: markus.schoenberger@voith.com
Further Information
The Sustainability Report is also available in German.
The German and English editions are available online at:
http: / / voith.com / corp-de / ueber-voith / nachhaltigkeit.html
http: / / voith.com / corp-en / about-us / sustainability.html
In addition to the Sustainability Report, Voith also publishes
a comprehensive Annual Report at the end of the fiscal year.
It is available online at:www.voith.com
Consulting
Schlange & Co. GmbH
Text
Carlsberg & Richter GmbH & Co. KG
DesignCorporate Communication
English translation
World2World, Hamburg –Mark Elliott & Jim Blake

3_Employees

4_Products and Supply Chain