Our central controlling instrument is “value added.” Therefore, the goal to create long-term value is anchored in the Group’s management processes. Value added is calculated by taking each division’s return on capital employed and subtracting from it the cost of capital. Another important means of improving value added, besides increasing the operating result, is the optimization of asset intensity. The effective management of capital expenditure is key to achieving success in this area. A further lever is working capital. Here, we focus on controlling trade accounts receivable and payable and on decreasing inventories. Value added, in addition to individually agreed goals, is a yardstick for determining the performance-linked compensation of our executives and salaried employees. For details on value management at RWE, please go to the chapter value added and value management.