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numerous manual and IT-assisted control mechanisms are applied. They encompass an analysis and a plausibility exam- ination of the registered data and the consolidated results by Group accounting as well as by the controlling department and other departments with expertise in this area. Required corrections of the information in the financial statements are generally made at the level of the individual company to ensure that the data are uniform and are transferred. The company auditor and the Group auditor examine issues, processes, and control systems relevant for the gen- eration of financial statements. The auditor reports on the audit directly to the Supervisory Board and the Audit Com- mittee. In certain cases, audits are carried out by the central Internal Audit department. After each process related to the preparation of the financial statements, optimization potential identified at the different levels is discussed and necessary adjustments of the processes are made. Opportunities The identification and evaluation of opportunities for our future business development is integrated into the different planning, analysis, and control processes. Within the framework of strategic planning, we ana- lyze demand trends as well as market and technology developments with regard to options for action that could enable ALTANA to create value. In addition, the divisions continually examine possibilities of developing new sales markets. During the financial planning process, the effects of action options are evaluated and discussed so that we can opti- mally exploit future opportunities. Finally, possible opportuni- ties for short-term business development, along with the attendant risks, are dealt with in detail at all levels of man- agement. Below, major opportunities are described that could lead to ALTANA’s surpassing its short-, medium-, or long-term goals. The order corresponds to our assessment of the effects on our business performance. Economic and Industry Development Should the economic environment in the established indus- trial regions important for ALTANA, and particularly in the U.S. and Europe, develop better than we anticipated, unex- pected growth impetus could arise. As a result, demand for our products and services could develop more positively and exceed our forecast. The same applies to growth in the important emerging countries in Asia and South America. If the growth rates in these nations were higher than ex- pected, we might be able to benefit from this to a dispropor- tionately high extent due to our market positions. In addition to regional factors, growth impetus can also result from individual branches of industry. Further poten- tial could be opened up, in particular, if the automotive sector showed a positive development, if the construction indus- try rebounded more quickly than expected, or if there was a trend reversal concerning the use of silver and gray colors in the consumer sector. Innovation We have to continually streamline our product and service portfolio to be able to continue to implement our strategy for profitable growth in the long term. Should ALTANA man- age to enhance its innovativeness more quickly than expected or to increase its share of new products for which there is a high demand beyond the target level, there would be even better prospects for growth. The same applies if we en- tered new markets or opened up new application fields for our products. 64 Expected Developments


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