BIG PICTURE VIEW The analyzed companies showed an + 8 % CAGR in total shareholder return from 2016 to 2022 . The year of 2022 presented challenges , reflected in a negative total shareholder return ( TSR ) of -13 % p . a .

TOP PERFORMERS Only 16 companies ( 5 % of the analysed companies ) were able to achieve top performance in the industrial industry in both periods 2019 – 2021 and 2021 – 2022 .

• Data analysis is based on extracts from public company information , including financial ratios for 333 European industrial companies .

• Division of the 333 companies into 9 sub-industries .

• Determination of total shareholder return ( TSR ) CAGRs and KPIs .

• Regression analysis to determine the correlation between performance indicators and TSR of top performing companies ( Top 25 %).

POST-COVID & UKRAINE WAR The pandemic and the Ukraine war both negatively impacted the average TSR of industrials . During both periods , some companies continued to outperform their peers .

SUB-INDUSTRY FOCUS The analysis showed clear differences with respect to sub-industry performance . The trading & distribution sector distinguished itself with the strongest performance : TSR CAGR 2016 – 2022 at 14 %

OPERATIONAL PERFORMANCE AS KEY TSR DRIVER The analysis confirms operating performance ( i . e ., revenue growth and EBITDA growth ) as main TSR drivers in both economic upturns and downturns . Overall market effects ( measured by the changes in multiples ) complement as main TSR driver in upturns .

SUCCESS FACTORS Key success factors for above-market TSRs are the ability to adapt to changing market conditions , investments in new technologies and early integration of sustainable practices .

AUTHORS : Christian Bast , Partner Felix von Obernitz , Principal

The authors would like to thank Leon Ostermann and David Zingg for their contribution to this publication .