Outlook 2008

(As of December 31, 2007)
ALTANA plans to carry on its successful business policy of the past. Increasing the company’s value through profitable growth will continue to be at the center of our activities.

Future sources of growth

In terms of our most important markets and sales regions, we continue to expect a balanced global mix for the next two years. Regarding the regional structure, we believe that the share of sales achieved in Asia will increase slightly due to the ongoing dynamic economic growth there. As in the past, ALTANA will continue to strive for a mixture of organic and acquisition-related growth. Our strong innovative ability as well as our high service orientation and close customer ties from the basis of our anticipated future growth.

Anticipated sales performance

From today’s perspective, we expect continued good demand for our specialty chemical products in the business years 2008 and 2009. We expect a sales growth in the mediumterm trend, i.e. in the middle single digit percentage area. We expect all of the divisions to contribute to the sales growth. In terms of regions, we foresee Asia contributing the highest growth once again.

Anticipated earnings development and the development of significant profit and loss positions

The sales performance forecast forms the basis for the earnings forecast.

However, we expect a disproportionate EBITDA growth for 2008 compared to the growth in sales, as the cost relief at the holding level due to the relinquishment of the two-tier holding structure will have a positive effect. This should lead particularly to a reduction of administrative expenditure. The planned EBITDA margin for 2008 should continue to be in the 18% to 20% target range.

The collected income from the investment of the sales price for ALTANA Pharma of € 55.3 million was included in the 2007 financial result. The planned financial result for 2008 does not contain any such one-time effects. This means that the forecast figures only include the expenses and earnings from borrowing and investment of cash and cash equivalents. Due to the absence of special earnings, the earnings before taxes (EBT) are expected to be lower in 2008 than in the prior year.

On account of the 2008 Corporate Tax Reform, the tax expenses of the German subsidiaries will decrease, thus reducing the effective tax rate of the ALTANA Group. From today’s point of view, we expect to see the forecast sales growth for 2009 accompanied by corresponding EBITDA and EBT increases over 2008. We expect the EBITDA margin to range within the targeted 18% to 20% in 2009 as well.

On account of the great significance of research and development for the success of our business, we will focus even more strongly on this area in the future. We expect our research and development expenditure to increase to around 6% of sales, in keeping with our target.

Anticipated dividend development

In the coming business years, ALTANA plans to enable its shareholders to participate appropriately in the company’s success. The distribution rate is expected to be between 30% and 40% of the Group‘s net income.