According to The Boston Consulting Group study of 2,350 companies throughout the world, Brembo is the leader in Italy for Total Shareholder Return generated during the 2012-2016 period
Brembo took the two top spots in the “How Top Value Creators Outpace the Market – For Decades” study conducted by The Boston Consulting Group (BCG). This study analyzed the ability to create value as expressed in the Total Shareholder Return (TSR) of the top 2,350 companies in the world during the 2012-2016 period.
Thanks to a TSR of 58% for the entire five-year period, Brembo is the leading company globally in the Automotive Component segment for creating value.
This value also enables Brembo to excel among the companies present on the FTSE MIB 40: in second place is Recordati with 42% and on the third step on the podium is Leonardo with 36%. Banca Generali holds fourth place with 32% and Fiat Chrysler is in fifth with 30%.
The TSR expresses an overall return on the investment for shareholders and is composed of the sum of the variation in the capital gain and the dividend yield during this same time frame.
According to BCP analysts, this study is less manipulable than other indexes and allows the companies to set long-term goals, compensating managers for generating value.
The top six spots in the global ranking overall are held by companies that operate in younger segments like technology, media and telecommunications: Netflix stands far above the crowd and is followed by NVIDIA and Tencent Holdings.
All three of these colossal companies were established in the 1990s and benefit from markets that are experiencing strong growth because they are younger than the automobile industry.
It is more difficult to attain an average annual TSR of 11.6 in a mature industry, which is precisely what Brembo has done. In 2016, the global market of lightweight vehicles, where three fourths of Brembo’s turnover originates, registered a growth of 4.6%. In spite of this, in 2016 Brembo’s turnover grew by 9.9%, the gross operational margin by 23.3% and the net worth by 30.8%.
This growth was made possible by continuous investment in new production plants – in 2016 alone five plants began production or were being built – all of which meet the most advanced technological standards in building, production processes, logistics and sustainability.
This strategy is a reflection of the Company’s DNA and its ongoing commitment to investing in research and innovation.
The fact that the public appreciates the quality of Brembo products is a result of a strict sequence of checks as regards efficiency, functionality and resistance that the Company conducts on all the products sold on the market.
Every year Brembo carries out nearly 350,000 man hours of bench testing and another 200,000 man hours of road tests.