Value Creation for Industrials in Europe | Page 6

Total Shareholder Return ( TSR ): Big-Picture View

The companies showed an 8 % CAGR in total shareholder return from 2016 to 2022 – despite a robust market environment for industrials in preceding years , 2022 presented challenges , reflected in negative TSR of -13 % p . a .
TOTAL SHAREHOLDER RETURN ( TSR ) TRENDS OF EUROPEAN INDUSTRIALS [ 1 ]
100
128
TSR CAGR
2016 – 2019
+ 11 %
115
137
TSR CAGR 2019 – 2021
+ 16 %
153
185
TSR CAGR 2021-2022
-13 %
161
TSR CAGR 2016 – 2022
+ 8 %
• Slump in 2018 TSR due to political instability and slow economic growth .
• Low interest rates , steady growth and low inflation supported growth of the industrial sector from 2019 to 2021 .
• Post-COVID-19 recovery accelerated growth .
• Increasing interest rates , inflation and geopolitical risks significantly reduced TSR in 2022 .
2016 ( Index = 100 )
2017 2018 2019 2020 2021 2022
[ 1 ] Total shareholder return , market capitalization and dividend payouts of the 333 companies analyzed . Source : Public company information , goetzpartners analysis
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