In the fiscal year, we continued to work on improving our cost base. The Group-wide “ProImprove” profit enhancement program provides the foundation for efficient management of costs. It aims to offset profit risks presented by price attrition, growth in lower-margin regions, expansion of the services business and factor-cost increases by focusing on cost of sales and, in particular, selling and general administration costs. This, together with other measures, produced an increase in our return on net sales revenue at EBITA level of 0.5 percentage points to 7.9 % (previous year: 7.4 %).

As a percentage of net sales revenue, selling and general administration costs were reduced by 1.5 percentage points to 15.5 % (previous year: 17.0 %). In absolute terms, these costs totaled € 271 million (previous year: € 268 million)¹⁾ and, at 1 %, rose at a much slower rate than the 11 % increase in net sales revenue.

Our effective cost management succeeded in offsetting a 1 percentage point reduction in gross margin, before amortization of product know-how, to 28 %. This deterioration was mainly the result of international growth and a stronger increase in the solutions and services business.

Research and development costs rose by € 5 million, or 7 %, to € 78 million (previous year: € 73 million). The R&D expenses as a percentage of sales were 4.5 % (previous year: 4.6 %).

¹⁾ Without amortization of goodwill.