Value Management
Key figures value management
2015 2016
in € million
Operating capital (annual average) 2,354.4 2,344.2
Operating earnings 237.5 270.8
Return on capital employed (ROCE) 10.1 % 11.6 %
Weighted average cost of capital 8.0 % 8.0 %
ALTANA Value Added (relative AVA) 2.1 % 3.6 %
ALTANA Value Added (absolute AVA) 49.2 83.3
ALTANA determines the change in the company’s value via
the key figure ALTANA Value Added (AVA). In the 2016
fiscal year, we made a significant contribution to our company’s
value again.
The Group’s average capital employed fell to € 2,344.2
(previous year: € 2,354.4 million). The decrease largely resulted
from the sale of the ACTEGA Colorchemie group, which
was partially offset by the acquisition of the BYK Addcomp
companies. At € 270.8 million (previous year: € 237.5 million),
operating earnings rose due to the significantly improved
earnings situation in 2016.
At 11.6 %, the return on capital employed (ROCE) was
at a very good level and considerably higher than the pre-
vious year’s figure (10.1 %). With an unchanged cost of capital
rate of 8.0 %, the relative AVA reached 3.6 % (previous
year: 2.1 %).
Analogous to the decrease in operating capital, the cost
of capital decreased slightly to € 187.5 million in 2016
(previous year: € 188.4 million). As a result, the absolute AVA
amounted to € 83.3 million (previous year: € 49.2 million).
Due to the positive earnings development, we were able
to improve the value key figures to a much greater extent
than we had forecast for 2016.
Overall Assessment of Our Business
Performance and Business Situation
In the course of the year, the overall economic framework condi-
tions largely remained stable.
Despite the challenging market environment, ALTANA was able
to increase its operating sales, though the regional growth
dynamic was very uneven. Our profitability rose, primarily due
to the increased gross margins.
We strengthened our balance-sheet structures even further and
increased our financial headroom in 2016.
62 Business Development I Innovation and Employees