operating cash flow compared to the previous year did
not meet our expectations, since at the beginning of the year
we had anticipated the cash inflow would be roughly the
same as in the previous year.
Compared to 2016, the cash outflow from invest-
ing activities increased significantly to € 325.1 million (pre-
vious year: € 234.3 million). This increase was particularly
driven by acquisitions and technology purchases made in
2017.
The cash flow from financing activities amounted to
€ 67.4 million in 2017 (previous year: € 185.4 million). The
current debt outflows concerned the scheduled repay-
ment of a promissory note tranche (€ 32.0 million) and the
reduction of the debt of the PolyAd activities acquired.
In the 2017 fiscal year, ALTANA AG did not pay a dividend.
Value Management
Key figures value management
2016 2017
in € million
Operating capital (annual average) 2,344.2 2,509.7
Operating earnings 270.8 284.8
Return on capital employed (ROCE) 11.6 % 11.3 %
Weighted average cost of capital 8.0 % 8.0 %
ALTANA Value Added (relative AVA) 3.6 % 3.3 %
ALTANA Value Added (absolute AVA) 83.3 84.0
ALTANA determines the change in the company’s value via the
key figure ALTANA Value Added (AVA). In the 2017 fiscal
year, we made a very positive contribution to our company’s
value again.
The Group’s average capital employed rose to
€ 2,509.7 million (previous year: € 2,344.2 million). This increase
in capital largely resulted from company acquisi-
tions and technology purchases. At € 284.8 million (previous
year: € 270.8 million), operating earnings increased due
to the improved earnings situation in the 2017 fiscal year. To
guarantee the comparability of the key figures in value
management, in 2017 they were adjusted for the positive
effects of the tax reform in the U.S.
In 2017, the return on capital employed (ROCE) was, at
11.3 %, at an unchanged high level, though it did not
quite reach the previous year’s level (11.6 %). With an unchanged
cost of capital rate of 8.0 %, the relative AVA
reached 3.3 % (previous year: 3.6 %).
Analogous to the expansion of the operating capital,
the cost of capital rose to € 200.8 million (previous year:
€ 187.5 million). As a result the absolute AVA amounted
to € 84.0 million in the past business year (previous year:
€ 83.3 million).
Thus, the decrease of value key figures forecast for
2017 on account of company acquisitions did not only con-
cern the relative AVA. The slight increase in the absolute
AVA vis-à-vis 2016 exceeded our expectations and was at-
tributable to the positive business performance.
Overall Assessment of Our Business
Performance and Business Situation
In the course of the year, the overall economic framework condi-
tions developed positively.
In this environment, ALTANA successfully expanded its business
activities in its important target markets and achieved high
operating growth. Due to continuously rising raw materials prices,
profitability fell compared to the previous year.
Our balance-sheet structures remained robust at the end of
2017. As a result, sufficient financial headroom is available for
further growth.
62 Business Development I Innovation and Employees