Expected Developments

Future Orientation of the Group

We do not plan on making any fundamental changes to the Group’s strategy or organizational structure in the next two years. The focus on specialty markets and the offer of innovative chemical solutions based on our customers’ requirements will continue to drive our business development.

We do not expect our entry into new market segments or application areas to lead to any significant changes in our sales structure in the medium term. We also expect the balanced regional sales distribution to basically remain stable.

Acquisitions, however, could lead to changes in our sales and market structures. Bolt-on acquisitions and particularly the integration of a new business division could result in a shift.

In the future, the area of occupational safety and the increased focus on environmentally compatible management will continue to result in ambitious targets that will impact the ALTANA Group’s strategic orientation.

Economic and Industry Outlook

Global economic growth should recover significantly in 2021 compared to the previous year. The International Monetary Fund (IMF) forecasts a 5.5 % increase in global economic output. Following a pandemic-related decline of -3.5 % in 2020, a recovery above pre-crisis levels is expected in 2021. This estimate is based on the assumption that the measures initiated worldwide to contain the pandemic and supply vaccines will progress. However, in the event of a significant delay in vaccine provision or sustained restrictions in the course of the pandemic, the overall economic growth prospects for 2021 – and thus also the basis for the developments forecast in the chemical industry – would deteriorate.

Alongside the traditional industrialized nations, the main driver of the expected positive development will be China.

Despite suffering a sharp economic downturn at the beginning of 2020, the country achieved slight growth overall last year and this trend is expected to continue to a greater extent in 2021. According to the IMF, the industrialized nations will benefit to varying degrees from the global upturn. In the U.S., 5.1 % growth is forecast for 2021, although the crisis-related decline in total economic output in 2020 was only -3.4 %, meaning that here, too, the losses from the coronavirus pandemic will already be offset in 2021. The IMF expects the Eurozone economy to grow by 4.2 %, following a 7.2 % decline in 2020. For Germany, and for the Eurozone as a whole, the IMF does not anticipate that the contraction of the gross domestic product in 2020 will be fully offset in 2021. The decrease of -5.4 % in 2020 is set against a growth forecast of +3.5 % for 2021. Here, too, the expected recovery depends on whether the pandemic is fought successfully.

According to the IMF forecast, growth in the emerging markets should exceed 6 % overall in 2021, significantly outweighing the decline in 2020 (-2.4 %). But the picture varies greatly depending on the individual economies. This development will be driven primarily by China. While China achieved growth of 2.3 % in 2020 thanks to its successful containment of the pandemic and is expected to grow by as much as 8.1 % in 2021, India was hit much harder by the pandemic in 2020. But there, too, the decrease in economic output in 2020 (-8.0 %) should be more than offset by the growth rate forecast for 2021, which is expected to be 11.1 %. For the Latin American economies of Brazil and Mexico, on the other hand, the sharp pandemic-driven decline in 2020 is not expected to be fully offset by the growth in 2021.

In addition to the global economic risks brought about by the pandemic, the IMF and other leading economic institutes see numerous other risks in their assessment for 2021 that could lead to a slowdown in global growth. These are essentially the increasing uncertainty with regard to geopolitical risks, which could lead to a restriction of international trade relations, and the continuing uncertainty regarding the trade dispute between the U.S. and China.

Against the backdrop of the global economic outlook, a recovery with slight growth is expected for the chemical industry in 2021. The American Chemistry Council (ACC) forecasts a 3.9 % increase in global chemical production in 2021, after an expected pandemic-related decline of -2.6 % in the previous fiscal year. The recovery is expected across all regions, but for the chemical industry, too, it largely depends on the further course of the pandemic in 2021, and specifically on the availability, distribution, and effectiveness of vaccines.

On the basis of the economic and industry-specific framework conditions, we assume that the general demand in all of the markets relevant for ALTANA will basically be positive, although there will be regional and market-specific differences. The extent to which changes in storage levels along the value chain will influence the demand for our divisions’ products largely depends on the expected short- to medium-term development. Stock-level changes can lead to significant effects.

The development of crude-oil prices cannot be predicted reliably. Following the major pandemic-driven fluctuations in the price of crude oil in 2020, we expect to see a slight increase in 2021, but no significant price fluctuations. The availability, pricing, and consumption volume of chemical products are subject to the influence of the crude-oil market, albeit to different extents. In addition, the expectations of market participants with regard to the future development of oil prices can give rise to significant changes in inventory levels along the chemical industry’s entire value chain.

As in the previous years, the exchange-rate relations important for ALTANA may continue to show pronounced volatilities in 2021. The development of regional interest rates and economic output, as well as political influences, can be of decisive importance for exchange-rate fluctuations. Since the intensity and direction of the exchange rates cannot be predicted, it is not possible to make concrete statements about the influence. Concrete risks, as well as opportunities, can result from a deviation of the actual exchange-rate development from our planning assumptions.

Expected Earnings, Asset, and Financial Situation

Expected Sales and Earnings Performance
On the basis of the expected recovery of the global economy, we anticipate a positive development in demand for our products and services in the 2021 fiscal year. We expect our operating sales growth, i. e. sales growth adjusted for exchange-rate and acquisition effects, to be in the low to mid single-digit percentage range. This growth should result primarily from an increase in sales volumes.

The nominal sales increase in 2021 should be slightly lower than the operating increase due to anticipated negative exchange-rate effects. However, the acquisitions already agreed and potential further acquisitions may have a significant effect on the growth rate. Schmid Rhyner AG was integrated into the ALTANA Group as of March 2020 and Aluminium Materials Technologies Ltd. from May 2020. In addition, the activities of TLS Technik GmbH & Co. Spezialpulver KG have started to be integrated into the Group in February 2021. For the most part, sales in the divisions should develop in the same range as Group sales.

In terms of the most important functional cost factors, we do not foresee significant shifts of cost ratios in relation to sales. For the cost of materials ratio, we forecast an increase compared to the past fiscal year.

As regards personnel expenses and other fixed cost items, we are planning a relative increase for 2021 that will be slightly above the level of overall sales growth. This is mainly due to the absence of the pandemic-related cost-saving effects of 2020, particularly regarding trade fairs and travel costs, as well as reduced personnel costs resulting from temporary short-time working, among other things.

The EBITDA margin for 2021 is expected to decrease and should develop toward the lower end of our strategic target corridor of 18 % to 20 %. Absolute EBITDA is forecast to be in the range of the previous year.

After 2021, we expect a further increase in growth momentum with generally rising profitability.

Expected Asset and Financial Situation
There should not be any significant shifts in the balance sheet structure in 2021. In the next two years, our capital expenditure for property, plant and equipment and intangible assets should be within our long-term target range of 5 % to 6 % due to strategic growth projects. The absolute values of net working capital should develop in line with the general business trend.

Based on the anticipated business performance, we will continue to generate a clearly positive cash flow from operating activities in the coming years. In the short term, however, this may lag behind the very good figures of recent years. We will use the cash inflow primarily to finance investments and further acquisitions beneficial to the development of the ALTANA Group.

We expect the value management key figures for 2021 to decline compared to the past fiscal year. This will be due primarily to a lower operating income and a simultaneous increase in operating capital owing to the expected investments and the acquisitions already completed in 2020. For the relative and the absolute ALTANA value added, we expect an amount close to the threshold for value creation, as for 2021 the return on capital employed is forecast to be at the level of the cost of capital of 7.5 %.

Expected Development in the Area of Occupational Safety and the Environment
Based on the long-term positive development in the area of occupational safety in the past fiscal years, we set ourselves the following targets for 2021 for the three accident indicators: WAI 1: 2.5; WAI 2: 1.7; and WAI 3: 30.

ALTANA is aiming for a target value of 1.24 MWh/t for the specific energy parameter for 2021, following a value of 1.28 MWh/t in the previous fiscal year. In the following years, further reductions of specific energy consumption in the ballpark of 2 % per year are planned.

Risks

Management and control of the ALTANA Group are geared to the strategy that has been defined and the target levels derived from it. Due to changes in the economic environment or internal and external factors of influence, it might not be possible to implement the strategy successfully or to achieve targets in the planned time frame or to the planned extent. To be optimally prepared for such situations, ALTANA systematically identifies, evaluates, and considers risks within the framework of decision-making processes.

To anchor our risk policy at all decision-making levels, we established a Group-wide risk management system that brings together various information, communications, and monitoring systems. Core elements of our risk management include strategic corporate planning, internal reporting, our internal control system, compliance organization, and risk management in the strict sense.

Our strategic corporate planning is closely tied to our medium- to long-term financial planning. The extent of the fulfillment of our targets is examined in monthly reports on the company’s business performance and in our short-term financial planning. Apart from an analysis of the current business situation, in these reports and our planning, our expectations for the current fiscal year are discussed extensively at the level of the divisions on a regular basis. As a result, deviations from planned developments can be recognized and countermeasures introduced if necessary.

Our internal control system defines organizational and procedural requirements that serve to prevent damage to the company, among other things. In connection with our established compliance organization, it aims to prevent possible violations of guidelines and laws on the part of employees.

At ALTANA, risk management in the strict sense is viewed as the systematic compilation, evaluation, documentation, communication, and, if not already in place, derivation of measures regarding the relevant risks. Thus it is an essential component of the company’s system for early risk recognition in accordance with section 91 (2) of the German Stock Corporation Act. This system was voluntarily examined by the auditor. The audit deemed the system capable of recognizing risks that can endanger the existence of the company at an early stage.

Risks that are identified are evaluated in a uniform way. So-called evaluated risks are assessed based on the probability of their occurring and the potential damages. Individual risks can be rated based on this assessment. Risks rated as very high are risks which could cost the company € 25 million or more in the next twelve months. Individual risks that could cost the company between € 12 million and € 25 million are rated as high risks; risks that would cost between € 5 million and € 12 million are categorized as medium risks, and risks that would cost less than € 5 million are deemed low risks. The prioritization resulting from the assessment determines focal points for the development and initiation of countermeasures to prevent or reduce the potential effects of risks.

The individual risks and risk fields described in the following pages could have a material adverse effect on the Group’s earnings, financial, and asset situation in the years to come and thus give rise to a negative deviation from the forecast development. For individual risks categorized as “medium,” “high,” and “very high” we address changes in our appraisal compared to the previous year.

Economic and Industry Risks
The development of the general economic conditions worldwide has a decisive impact on our business performance. The performances of the economies of the U.S., China, and Germany – industrial nations important for ALTANA – have a particularly strong impact on the direction and intensity of demand for our products.

A global economic crisis leading to an economic collapse would bring about significant sales decreases with corresponding influences on our earnings. Recessions limited to certain regions in sales markets important for us could also significantly impair our business performance. With the global orientation of our sales activities, we try to shape our dependence on regional or national markets in such a way that the effects of geographically confined economic crises on the Group are limited.

Thus, the U.S. and China, the most important countries for us, each currently account for almost 20 % of total Group sales. The distribution of our business activities in the core regions of Europe, Asia, and the Americas also has a balanced structure.

At the same time, we continually update our appraisal of the regional economic development in our internal reporting system to be able to react to foreseeable effects by controlling our procurement, production, and sales activities. We react to long-term shifts in the regional significance of sales markets by adjusting our sales, production, and organizational structures.

In addition to general economic risks, there are market-related sales risks concerning individual product groups or application areas. Particularly medium-to long-term trends that structurally lead to a decrease in demand in our target markets can mean that we will not achieve our growth and profitability targets. We try to counteract industry-related sales risks by broadly diversifying our offer. We supply many different industries, which in turn sell their end products in various markets. Therefore, our dependence on the underlying markets is limited. We estimate that no more than 20 % of our sales is attributable to a single consumer segment, such as the automotive sales market, the graphic arts industry, or the construction sector.

The analysis of our industry-specific and application-related sales is a component of our annual strategy process. In addition, we examine changes in future growth potential arising from demand trends and technological developments, and adjust our strategic orientation in the divisions if necessary.

The occurrence of a global economic crisis or the emergence of regional economic crises are two significant economic and industry risks, which in 2020, as in the previous year, were assigned to the “high” and “medium” risk classes in 2020. In the 2020 fiscal year, our assessment of the probability of occurrence of both risks did not change despite the current pandemic and the associated and continuing high level of uncertainty regarding economic development. As restrained market momentum was already taken into account in the medium-term financial planning, the potential damages and the assessed risk for individual risks have decreased slightly compared with the previous year.

Sales Risks
Sales risks result mainly from intensified competition or shifts in customer structure. They include sales risks for individual products or product groups due to specific demand trends.

This can lead to decreasing sales revenues, which can be caused by declining sales volumes or falling prices. Since in many cases we cannot adjust the cost structure in the short term, this can lead to a drop in profitability.

We counter sales risks by continually optimizing our product and service portfolio, above all on the basis of our innovative ability. In the process, it is decisive that we cooperate closely with our customers at an early stage of development work to adapt to market needs. With our innovation strategy, we can counter increased competition in our markets.

A loss of, mergers of, or backward integration of customers can lead to major changes in the customer structure. Due to our very diversified customer structure, however, these risks are limited. In addition, we cooperate closely with our core customers within the framework of our key account management.

In the group of sales risks, there has been a change in our estimates of the probability of occurrence and damages compared to the previous year. The magnitude of the risk assessed is now classified as low (previously medium).

Risks from Business Combinations and Investments
Apart from operating growth, acquisitions of companies, business activities, and individual technologies play a key role for the implementation of the strategy for profitable growth at ALTANA. Depending on the size of the activities acquired, inadequate integration can place a burden on the Group’s earnings situation and limit its financial headroom. In addition, a business performance that is worse than what was expected when the acquisition was made can lead to impairments of assets with a negative impact on earnings.

To minimize the effects of the risks from business combinations, we examine our acquisition targets systematically and comprehensively and analyze them in detail in a multistage approval process.

Impairment losses recognized in the past fiscal year have reduced the impairment risk. Therefore, compared to the previous year, the assessed risk for impairment of assets from acquisitions, which we continue to classify as medium risk, has decreased.

Procurement Risks
Limited availability of certain raw materials or substantial raw-material price increases that we cannot or can only partially pass on to the markets in the short term constitute the primary procurement risks. These can have a negative impact on the Group’s earnings situation.

We continually analyze the situation on the raw-materials markets that are relevant for ALTANA. By doing so, we can identify price trends and structural shifts on the part of suppliers at an early stage and devise suitable measures. We take this knowledge into account when we arrange supply contracts. In addition, we take account of the volatility of raw-materials prices in our customer relations. To be able to pass on price increases to the markets in the short term, we use the flexibility of price mechanisms and price lockup periods.

The group of procurement risks is still classified as medium compared to the previous year. However, due to a higher probability of occurrence and increased damages regarding raw-material procurement, the risk increased in the past fiscal year.

Financial Market Risks
Financial market risks primarily concern short-term and significant changes in exchange-rate relations and interest rates, as well as default risks and the covering of financial resource needs.

Due to exchange-rate fluctuations, the translation of foreign currency positions into the Group currency, the euro, can have a negative effect on the Group’s sales and earnings performance (translation risks). Such negative effects can also result from business conducted in a foreign currency (transaction risks). Interest-rate changes influence financing costs. Defaults on trade accounts receivable or financial receivables can also have a negative effect on the Group’s earnings situation and its financial resources. If there is a lack of availability of financial resources for the implementation of acquisitions or major investment projects, we might not reach our strategic targets.

We safeguard against material transaction risks by concluding forward foreign-exchange contracts in cases where we assume that the underlying business can be realized with a sufficient degree of certainty. In the case of risks from operating activities, the total amount expected is safeguarded in different tranches to offset short-term exchange-rate fluctuations. More information on our evaluation and accounting procedures for hedges can be found in the complete Consolidated Financial Statements.

To minimize credit default risks, we systematically examine the credit rating and payment behavior of our counterparties. The latter include customers, the banks we do business with, and other business partners where payment default can have an influence on our financial situation.

We safeguard availability of financial resources through central control and monitoring of our Group-wide financial resources. In addition, by utilizing various financing instruments, we centrally provide a financial resources framework. It can be used to cover unplanned financial requirements in the short to medium term arising, for example, from acquisitions or a crisis-related decline in operating activities.

As in the previous year, the group of financial market risks is assessed as a medium risk. We evaluate the main individual risk in this risk group – negative earnings effects from exchange-rate changes – as having the same probability of occurrence as in the previous year and a slightly lower potential to lead to damages. Continued high cash inflows from operating business activity and the existing general financial resources framework continue to suffice to cover the expected cash outflows for investments, repayments, and dividends.

Innovation Risks
ALTANA’s position as an innovation and technology leader is a major success factor for the company. It is important for a supplier of highly specialized chemical products to continually introduce new products on the market and to be perceived by our customers as a competent and innovative partner. If this was no longer the case in the future, risks could result for our sustainable growth, the attainment of our profitability targets, and ALTANA’s positioning in the relevant markets.

With our innovation culture, which is put into practice at all levels of our organization, we highlight the importance of innovation and safeguard its status. Both at a decentralized and at Group level, we can continually evaluate and control our research and development activities based on financial and non-financial criteria. By investing above-average amounts in research and development, we can continually introduce products on the market that are tailored to customers’ individual and current needs and thus positively influence our competitive position.

It is important to protect knowhow we develop with patents to convert our knowledge edge into economic success. This includes safeguarding technologies as well as methods and product properties we currently use so that other companies cannot patent them.

Due to an expansion of activities in the field of digital applications and business models and the risks associated with them, the potential damage has increased. Overall, we assign the group of innovation risks to the medium risk group.

Other Risks
Production risks concern technical disruptions or human failure in production that can be harmful to people or the environment. Our goal is to minimize the effects of machine failure on the value chain by operating production lines independently from one another. It is compulsory for our staff to receive training in the clearly defined process and quality standards in the areas in question. In addition, we conclude property damage as well as plant and equipment breakdown insurances.

Information technologies form the basis of nearly all of ALTANA’s business and communications processes. Breakdowns or other disruptions of IT systems can lead to far-reaching impairments in all of the Group’s value-added stages, which can have significant effects on business performance (IT risks). In addition, potential risks arise from data loss or theft of business secrets. ALTANA attaches great importance to smooth availability of IT applications and services. To guarantee this, corresponding processes and organizational structures have been established. Emergency plans are in place in case of significant disruptions or losses of data. Delivery of faulty products can cause damage to people, property, or the environment and thus cause liability risks. This can have significant effects on the Group’s asset situation. We minimize this risk by standardizing production processes to a large extent and by taking comprehensive quality-control measures. In addition, we continually conduct analyses to assess the hazardous potential of our input materials and products, and we conclude insurances.

Changes in political and regulatory framework conditions can lead to restrictions on trade or foreign-exchange transactions. Due to political unrest, it can be more difficult or even impossible to access the Group’s assets in the country or countries in question. On account of regulatory adjustments, it might no longer be possible to process or sell certain products or ingredients, or only with strong restrictions. We continually examine the political environment in the countries important for us and take current tendencies into account when evaluating business relationships. We only make direct investments in countries in which we assume the political environment is highly stable. We actively take part in legislative procedures and discussions important for us that focus on changes in the regulatory environment. As a result, we can anticipate possible new requirements early on.

In the past fiscal year, with the probability of occurrence remaining largely unchanged overall, the damage values increased slightly, particularly for risks due to imposed government lockdowns and the new introduction of the Supply Chain Act.

Due to the transnational impact of the pandemic and any measures that may be required to contain its further spread, production processes and/or supply chains may be impaired or interrupted and product sales may be impeded. As a result, there is a risk of economic damage. The further course of the pandemic may have an impact on the economic development of all of ALTANA’s sales markets. Both the duration and the specific impact on the economic development for ALTANA in 2021 depend on the effectiveness of the vaccination programs and the further countermeasures to contain the pandemic. The possible financial effects were taken into account in the planning figures and scenario analyses for 2021 based on them.

The United Kingdom left the European Union on January 31, 2020, with an exit agreement. Shortly before the end of the transition period on December 31, 2020, an agreement was reached between the negotiating parties on a trade agreement on December 24, 2020. On December 31, 2020, the agreement was ratified by the British Parliament and could thus enter into force provisionally on January 1, 2021. Ratification by the European Parliament, which is still outstanding, is planned for the first half of 2021 following examination of the trade agreement. The far-reaching opening of the single market for the United Kingdom has minimized the risks relating to increased tariffs for imports and exports. We expect that the current difficulties in the administrative processing of imports and exports can be reduced in a timely manner. The existing EU REACH certifications of products or raw materials will have to be adjusted on the basis of the new UK REACH, which will be valid starting January 1, 2021. However, this regulation is no longer expected to increase the risk of a significant impact on earnings.

Legal violations (compliance risks) can give rise to liability risks or tarnish our reputation, which can have a significant effect on the Group’s earnings and asset situation. We counter these risks within the framework of our compliance management system, inter alia by regularly informing and training our employees about relevant legal requirements.

An important basis for long-term success are competent and committed employees. Should we no longer be able to recruit or retain suitable specialists or managers in the future, risks could arise for the successful implementation of our strategy (personnel risks). To counter these risks, ALTANA offers a sophisticated work environment and an attractive compensation system, which is supplemented by various pension plans and wealth creation schemes. Moreover, we regularly offer further education and training programs to budding junior staff members, as well as to specialized and managerial staff.

Compliant Group Accounting
Essential accounting-related risks arise particularly when extraordinary or non-routine issues are handled. These include the first-time consolidation of acquired businesses or parts of companies as well as the recording of the sale of Group assets. Accounting of financial instruments is also subject to risks due to the complex evaluation structure. Risks also arise from fraudulent acts.

At ALTANA, a separate department of the Group’s holding company coordinates and monitors Group accounting. A core component of the control system are the guidelines, process descriptions, and deadlines that this department defines centrally for all companies, guaranteeing a standardized procedure for preparing the financial statements. For complex issues, the instruments needed for uniform accounting are retained centrally for all Group companies. For recording extraordinary processes and complex special issues, we regularly obtain external reports, advice, and statements.

The financial statements of the individual Group companies are prepared decentrally by the local accounting departments. Hence the individual companies are responsible for preparing the financial statements, in keeping with Group guidelines and country-specific statutory accounting requirements.

The work steps needed to prepare the financial statements are defined such that important process controls are 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 financial statements are recorded and consolidated via standardized formats and processes in a central 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 examination 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 the data are uniform and are transferred.

The company auditor and the Group auditor examine issues, processes, and control systems relevant for the generation 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 analyzed 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 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, particularly in the U.S., China, 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 disproportionately high extent due to our market positions.

In addition to regional factors, growth impetus can also result from individual branches of industry. Further potential could be opened up, in particular, if the automotive sector and the construction industry showed a positive development, or if there was an increase in 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 profitable and sustainable growth in the long term. Should ALTANA manage 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. Furthermore, customers could demand innovative products manufactured and sold by us more quickly and to a greater extent than we had expected. The same applies if we entered new markets or opened up new application fields for our products.

Business Combinations and Portfolio Measures
Acquisitions play a key role in ALTANA’s long-term value creation. In recent years, we have continually advanced the Group strategically due to acquisitions. At the same time, we cleansed our portfolio of those activities that did not develop in line with our strategic objectives and did not promise to create value for the Group in the long term.

In the future, we intend to continue to boost our growth by acquiring businesses and activities. This is an essential prerequisite for us to achieve our strategic growth targets. Should opportunities arise in the future that exceed our expectations, this can help us strengthen our market positions and open up new market segments. This can have an additional positive impact on the achievement of our strategic goals.

Synergies
The ALTANA Group is decentralized to a large extent. Still, in some areas of the value-creation chain and in certain management functions, central units support the divisions and play a coordinating role. To the extent that we manage to push forward the networks within the Group more strongly than expected, this may spawn further potential to improve efficiency.