Within the framework of strategic planning, we analyze
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 optimally
exploit future opportunities. Finally, possible opportunities
for short-term business development, along with
the attendant risks, are dealt with in detail at all levels of
management.
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 industrial
regions important for ALTANA, and particularly in the
U.S. and Europe, develop better than we anticipated, unexpected
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 expected,
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
and the construction industry showed a positive devel-
opment, 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 pursue our strategy for
74 Expected Developments
already integrated. These include guidelines pertaining to
the separation of functions and allocation of responsibilities,
to control mechanisms, and to IT system access regulations.
The respective management explicitly confirms to the Group’s
management that the annual financial statements are correct
and complete. In addition, important financial statements
are audited by the company or Group auditors in charge.
The local accounting statements are recorded and consolidated
via standardized formats and processes in a cen-
tral IT system. At the divisional and holding company levels
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 genera-
tion of financial statements. The Group auditor reports
on the audit directly to the Supervisory Board and the Audit
Committee. 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.