Interim Financial Report Q1 – Q3 2009 by n1884

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									Interim Financial Report
Q1 – Q3 2009
January 1 to September 30, 2009
ALTANA Group




Key Figures at a Glance


                                                       Q1 – Q3 /             Q1 – Q3 /                               Q3 /            Q3 /
                                                           2009                 2008          Δ%                    2009            2008       Δ%
    in € million
    Sales                                                   872.2              1,067.5          - 18            331.2               350.7         -6
    Earnings before interest, taxes,
    depreciation and amortization
    (EBITDA)                                                139.4                213.1          - 35                71.4             71.7          0
        EBITDA margin                                     16.0 %                20.0 %                         21.6 %             20.4 %
    Operating income (EBIT)                                   76.8               159.5          - 52                46.8             53.2       - 12
        EBIT margin                                         8.8 %               14.9 %                         14.1 %             15.2 %
    Earnings before taxes (EBT)                               70.4               152.1          - 54                45.8             48.5         -6
        EBT margin                                          8.1 %               14.3 %                         13.8 %             13.8 %
    Net income (EAT)                                          47.5               101.8          - 53                32.6             32.4          1
        EAT margin                                          5.4 %                9.5 %                          9.8 %               9.2 %
    Earnings per share (EPS, in €)                            0.35                 0.75         - 53                0.24             0.24          1
    Research and development
    expenses                                                  52.8                 54.8           -4                17.9             18.8         -5
    Capital expenditure on property,
    plant and equipment and
    intangible assets                                         37.3                 70.3         - 47                10.1             26.0       - 61
    Cash flow from operating
    activities                                              156.8                123.5           27                 77.7             56.9         37



                                                                                               Sep. 30, 2009                Dec. 31, 2008      Δ%
    in € million
    Total assets                                                                                          1,792.0                1,749.6           2
    Shareholders’ equity                                                                                  1,207.8                1,178.4           2
    Shares outstanding (in thousands)                                                                     136,098                136,098           –
    Net debt 1                                                                                               21.4                    99.3       - 78
    Headcount                                                                                               4,662                   4,791         -3
1
    Comprises cash and cash equivalents, marketable securities, debt, and employee benefit obligations.




    ALTANA Share                                                                                       Q1 – Q3 / 2009                     Q3 / 2009
    Xetra, in €
    Closing price (September 30)                                                                                13.09                         13.09
    High                                                                                                        13.60                         13.24
    Low                                                                                                         12.39                         12.91
    Trading volume (Ø, in thousands per trading day)                                                                  39                          12
    Market capitalization (in € million, September 30)                                                          1,782                         1,782




                                                                                                                              Interim Financial Report   2
Interim Financial Report
Q1 – Q3 2009

Interim Management Report

Business Performance and Earnings Situation     4
Sales Development                              4
Earnings Development                           5
Segment Reporting                              6


Financial Position                              7
Assets, Liabilities and Shareholders’ Equity   7
Liquidity and Cash Flow                        7
Capital Expenditure                            8


Employees                                       8
Opportunities and Risks                         9
Outlook                                         9


Interim Financial Statements

Income Statement                               10
Statement of Financial Position                11
Statement of Cash Flows                        12
Statement of Comprehensive Income              13
Statement of Changes in Shareholders’ Equity   13
Notes                                          14


Legal Disclaimer
Contact
Financial Calendar




                                                    Interim Financial Report   3
Interim Management Report


Business Performance and Earnings Situation
Key figures

                                          Q1 – Q3 /         Q1 – Q3 /                                          Q3 /              Q3 /
                                              2009             2008            Δ % Δ % op.1                   2009              2008          Δ % Δ % op.1
    in € million
    Sales                                      872.2         1,067.5             - 18          - 23          331.2             350.7             -6            -9
    Earnings before interest,
    taxes, depreciation and
    amortization (EBITDA)                      139.4            213.1            - 35          - 38            71.4              71.7              0           -5
        EBITDA margin                        16.0 %           20.0 %                                        21.6 %           20.4 %
    Operating income (EBIT)                     76.8            159.5            - 52                          46.8              53.2          - 12
        EBIT margin                            8.8 %          14.9 %                                        14.1 %           15.2 %
    Earnings before taxes
    (EBT)                                       70.4            152.1            - 54                          45.8              48.5            -6
        EBT margin                             8.1 %          14.3 %                                        13.8 %           13.8 %
    Net income (EAT)                            47.5            101.8            - 53                          32.6              32.4              1
        EAT margin                             5.4 %            9.5 %                                         9.8 %            9.2 %
1
    Operating deviation, i. e. adjusted for exchange-rate, as well as acquisition and divestment effects. This adjustment also applies to other sections in this
    interim financial report.



Rising demand in all divisions in the third quarter
The recovery of the demand for chemical products that has made itself felt already since mid-year has
continued in the third quarter. With its strong position in different segments of specialty chemicals,
ALTANA was able to profit from this trend and recorded a perceptible recovery with respect to order
entry and sales over the last months. As a result, sales in the third quarter were higher than in the
previous quarters of the current business year, and the decline in comparison to the prior-year was clear-
ly reduced. However, due to the massive slump in demand on account of the financial and economic
crisis in particular at the beginning of 2009, Group sales in the period January to September 2009
decreased by 18 % on the same period a year ago to € 872.2 million (prior year: € 1,067.5 million).
The operating sales decrease was - 23 %. The sales performance was positively influenced by exchange
rate changes (3 %) and acquisition effects (1 %), primarily related to acquisitions in the Additives &
Instruments division. During the reporting period, sales of the four divisions developed at uneven levels
and the recovery trend made itself felt at different speeds.
          The Effect Pigments and Electrical Insulation divisions are still affected the strongest by the crisis,
with accumulated sales as of the end of September 2009 down on the prior year by 26 % and 23 %
respectively. The Additives & Instruments division was able to further reduce its sales losses in the third
quarter, now reporting a decline of 14 % for the whole reporting period. Again, the burden of the
crisis was felt the least at the Coatings & Sealants division; here, sales were down 7 % on the same
period a year ago.



Sales by division

                                          Q1 – Q3 /         Q1 – Q3 /                                         Q3 /              Q3 /
                                              2009             2008           Δ % Δ % op.                    2009              2008          Δ % Δ % op.
    in € million
    Additives & Instruments                   311.5             361.5           - 14          - 21           125.5            124.9               0           -6
    Effect Pigments                           207.2             281.6           - 26          - 30            81.8              91.7           - 11          - 13
    Electrical Insulation                     200.0             258.8           - 23          - 26            71.2              80.2           - 11          - 13
    Coatings & Sealants                       153.5             165.6             -7          - 10            52.7              53.9            -2            -4
    Total                                     872.2          1,067.5            - 18          - 23           331.2            350.7             -6            -9




                                                                                                                                       Interim Financial Report     4
The recovery of the previous months was not uniform throughout the regions either. The Asian region,
in particular, contributed to the sales recovery in all divisions over the last months. At - 23 %, the
European region again reported the highest sales losses in the period January to September 2009,
followed by the Americas (- 16 %) and Asia (- 12 %). Compared to the prior-year period, the oper-
ating changes in some currency areas were even markedly below the nominal development, mainly
on account of exchange rate changes.

Sales by region

                              Q1 – Q3 /   Q1 – Q3 /                           Q3 /        Q3 /
                                  2009       2008      Δ % Δ % op.           2009        2008         Δ % Δ % op.
 in € million
 Europe                          415.4       537.6      - 23      - 25      151.9       172.2           - 12       - 14
     thereof Germany             141.3       186.3      - 24      - 26       54.3        60.5           - 10       - 13
 Americas                        195.7       233.0      - 16      - 24       71.9        78.3            -8        - 13
     thereof U.S.                132.4       155.2      - 15      - 24       46.4        51.1            -9        - 15
 Asia                            230.9       261.0      - 12      - 18       96.1        88.4             9           3
     thereof China               118.8       122.8        -3      - 12       50.3        40.4            24          17
 Other regions                    30.2        35.9      - 16      - 16       11.3        11.8            -3          -3
 Total                           872.2     1,067.5      - 18      - 23      331.2       350.7            -6          -9



Recovery in sales and cost savings measures support earnings development
The rise in demand recorded in the last three months compared to the first two quarters of the business
year and comprehensive cost savings measures resulted in a significant increase in profitability in
the third quarter of 2009. Earnings before interest, taxes, depreciation and amortization (EBITDA) for
the whole reporting period, however, were still clearly below the prior year. From January to Septem-
ber 2009, EBITDA fell by 35 % to € 139.4 million (prior year: € 213.1 million). Adjusted for exchange
rate and acquisition effects, the operating change on the prior year amounted to 38 %. The EBITDA
margin was at 16.0 %. Due to the burden of the economic crisis, it was therefore still markedly below
the prior-year value (20.0 %).
        The countermeasures that had been implemented early on throughout the Group on account of
the financial and economic crisis were continued in the third quarter of 2009. Due to the increased
utilization of production capacities some major cost savings measures, such as short-time work and the
reduction in working hours with the corresponding reductions in wages and salaries, on the other
hand, were reduced. The qualified hiring freeze, however, will be maintained. In addition, the efforts
to reduce other costs will also be continued. Up to now it was possible to partly compensate for the
crisis-driven slump in earnings thanks to comprehensive measures relating to personnel expenses and,
in particular, also the reduction of maintenance expenses as well as consultancy fees and travel
expenses. With the help of all implemented measures, cost savings totaling almost € 47 million were
achieved in the reporting period.
        Amortization and depreciation on intangible assets and on property, plant and equipment in the
period under review were higher than in the prior year. This development was influenced, among
others, by extraordinary depreciation on property, plant and equipment at an amount of € 5.2 million,
relating to the relocation of the Italian production site of the Effect Pigments division. At 52 %, the
decrease in operating income (EBIT) to € 76.8 million (prior year: € 159.5 million) was therefore higher
than the EBITDA decline.
        In the reporting period as well as in the prior year, the financial result of € - 6.9 million (prior year:
€ - 8.0 million) not only contains expenses and income from borrowing and investing funds, but also
extraordinary burdens on account of depreciations on long-term investments and shareholdings. Earn-
ings before taxes (EBT) decreased by 54 % to € 70.4 million, following € 152.1 million in the same
period of 2008.




                                                                                                 Interim Financial Report   5
Segment Reporting:
Uneven performance across divisions

Additives & Instruments
The sales performance in the BYK Additives & Instruments division showed a positive trend over the
past months. As a result, the decrease in sales as compared to the previous year was further reduced
in the reporting period. At € 311.5 million (prior year: € 361.5 million), sales as of the end of Sep-
tember were down 14 % on the same period of 2008, while the sales losses in the first quarter as well
as the first half-year had been significantly higher. The sales performance includes positive exchange
rate as well as acquisition effects totaling 7 %. The gradual recovery of the demand situation is also
reflected in the division’s earnings performance. At € 82.6 million (prior year: € 106.6 million), how-
ever, EBITDA as of the end of September is still significantly lower than the prior-year figure due to
the first weak months of the current business year.

Effect Pigments
As in the previous quarters the ECKART Effect Pigments division had to bear the highest burden of the
economic crisis. Sales in the reporting period fell by 26 % to € 207.2 million (prior year: € 281.6 million).
Adjusted for exchange rate as well as minor positive acquisition effects, the operating sales decrease
was even - 30 %. All of the division’s product groups and customer segments were affected by the mas-
sive drop in demand; metallic effect pigments for applications in the car paints segment, however,
were hit particularly hard. As the other divisions of the Group, the Effect Pigments division was also
able to profit from the perceptible recovery of the sales situation in the last months; however, this
development was not strong enough to compensate for the high losses of the prior quarters. As of the
end of September, EBITDA amounted to € 18.0 million (prior year: € 66.1 million), including one-off
special expenses at an amount of € 3.8 million relating to the relocation of the production of aluminum
pastes from the division’s Italian site to Germany.

Electrical Insulation
The ELANTAS Electrical Insulation division recorded losses that were similarly high as those posted by
Effect Pigments; sales dropped by - 23 % to € 200.0 million (prior year: € 258.8 million). The adjusted
operating change was - 26 %. While the European and the American regions still had to cope with a
very difficult demand situation, sales in Asia – and here particularly in China – showed a very positive
trend throughout the past quarters. It was mainly due to the unaltered continuation of the counter-
measures that negative earnings effects on account of the slump in demand were compensated for
to a large extent. As of September 30, the division’s accumulated EBITDA amounted to € 36.4 million
(prior year: € 41.0 million).

Coatings & Sealants
Sales in the ACTEGA Coatings & Sealants division declined by 7 % to € 153.5 million (prior year:
€ 165.6 million). This shows that the division’s activities, which are primarily focused on the areas of
packaging and printed products, still prove highly robust against the effects of the economic crisis.
This development is very positively illustrated in the division’s earnings. Compared to the prior-year
period, Coatings & Sealants was able to increase its EBITDA to € 21.3 million (prior year: € 19.6 mil-
lion), thanks in particular to the initiated efforts to save costs and enhance efficiency.


Holding
Savings related to personnel and other costs at the holding level also had a positive effect. As a result,
EBITDA was improved to € - 18.9 million (prior year: € - 20.2 million) in the period under review.




                                                                                         Interim Financial Report   6
Financial Position


Key figures

                                                                                         Sep. 30, 2009           Dec. 31, 2008           Δ%
    in € million
    Total assets                                                                                    1,792.0            1,749.6               2
    Shareholders‘ equity                                                                            1,207.8            1,178.4               2
    Net debt 1                                                                                            21.4            99.3            - 78
1
    Comprises cash and cash equivalents, marketable securities, debt, and employee benefit obligations.




                                                                                          Q1 – Q3 / 2009         Q1 – Q3 / 2008          Δ%
    in € million
    Cash flow from operating activities                                                               156.8              123.5              27
    Cash flow from investing activities                                                               - 79.1             - 65.0           - 22
    Cash flow from financing activities                                                               - 28.3             - 46.8             40




Assets, Liabilities and Shareholders’ Equity:
Balance sheet structure remains robust
The balance sheet structure continues to prove highly robust against the effects of the financial and
economic crisis. As of September 30, 2009, total assets amounted to € 1,792.0 million (as of Decem-
ber 31, 2008: € 1,749.6 million). This corresponds to an increase of 2 % since the end of the business
year 2008.
          On the asset side, the values of the balance sheet items intangible assets as well as property, plant
and equipment decreased, which had been influenced by curtailed investment activities. Total non-
current assets were down by 2 % to € 1,096.4 million (as of December 31, 2008: € 1,123.2 million).
Due to a variety of factors, total current assets, on the other hand, were up by 11 %, reaching
€ 695.6 million (as of December 31, 2008: € 626.4 million). While inventories were further reduced
by 13 % or € 27 million, trade accounts receivable went up by 17 % or € 36 million due to the rising
demand. The significant increase in cash and cash equivalents and securities held as current assets,
however, had the strongest impact on current assets. In total, both items rose by € 69 million on
account of the positive cash flow.
          On the liabilities side, the balance sheet extension is primarily reflected in the rise in shareholders’
equity, which grew, proportionally to the balance sheet total, by 2 % to € 1,207.8 million as of Sep-
tember 30, 2009 (as of December 31, 2008: € 1,178.4 million). Unchanged at 67 %, the equity ratio
therefore remained at a high level at the end of the reporting period. Non-current liabilities also
went up slightly and amounted to € 267.9 million at the end of the period under review (as of Decem-
ber 31, 2008: € 262.5 million). Current liabilities were up by 2 % to € 316.3 million (as of December
31, 2008: € 308.7 million).


Liquidity and Cash Flow:
Net debt perceptibly reduced
Driven by a successful management of net working capital, the cash flow from operating activities
increased to € 156.8 million in the period under review (prior year: € 123.5 million). A substantial
part of the cash inflow was used for investments in intangible assets as well as property, plant and
equipment and to acquire marketable securities. As a result, the cash outflow from investing activ-
ities amounted to € - 79.1 million (prior year: € - 65.0 million). The cash flow from financing activities
was € - 28.3 million (prior year: € - 46.8 million), relating to the reduction of debt and the dividend
payment at almost equal amounts.
          As of September 30, 2009, the Group recorded cash and cash equivalents of € 151.4 million
(as of December 31, 2008: € 104.2 million); the company’s net debt decreased to € 21.4 million (as of
December 31, 2008: € 99.3 million).




                                                                                                                        Interim Financial Report   7
Capital Expenditure:
All divisions reduce investments significantly

Capital expenditure by division

                                                           Q1 – Q3 / 2009     Q1 – Q3 / 2008          Δ%
in € million
Additives & Instruments                                             14.0               34.2            - 59
Effect Pigments                                                     11.2               18.9            - 41
Electrical Insulation                                                7.9               13.1            - 40
Coatings & Sealants                                                  1.9                 3.5           - 46
Holding                                                              2.3                 0.6          >100
Total                                                               37.3               70.3            - 47



All divisions have stretched ongoing investment projects over a longer timeframe and postponed
planned expansion investments. By the end of September, ALTANA ’s investment volume consequently
declined to € 37.3 million (prior year: € 70.3 million). Comparing the present figures with those of
the prior-year, however, it has also to be taken into consideration that major large projects had influ-
enced the investment volume in 2008.
     € 33.4 million of the total amount was invested in property, plant and equipment; the remaining
€ 3.9 million was invested in intangible assets. An amount of altogether € 20.6 million was invested
at the production sites in Germany, with the sites in Güntersthal (Effect Pigments) and Wesel (Addi-
tives & Instruments as well as Holding) accounting for the largest share of this sum. An amount of
€ 16.7 million was invested abroad.



Employees


Headcount by division

                                                          Sep. 30, 2009       Dec. 31, 2008           Δ%


Additives & Instruments                                            1,190              1,214              -2
Effect Pigments                                                    1,886              1,943              -3
Electrical Insulation                                                886                920              -4
Coatings & Sealants                                                  633                652              -3
Holding                                                               67                  62              8
Total                                                              4,662              4,791              -3



As of September 30, 2009, the ALTANA Group employed a total workforce of 4,662 people world-
wide, corresponding to a decrease of 129 people, or 3 %, compared to December 31, 2008. This
development was mainly caused by the qualified hiring freeze connected with normal staff fluctu-
ations as well as the expiration of temporary work contracts.
     At the balance sheet date, 2,743 people were employed in Germany; our foreign companies
employed 1,919 people.




                                                                                     Interim Financial Report   8
Opportunities and Risks

The global financial and economic crisis has led to a strong increase of the market-related risks, in
particular. The uncertainty remains high with regard to the economic environment, the develop-
ment in those end markets which are relevant for our business and regarding our most important
customers, and, consequently, with regard to the development of demand for our products.
     On the whole, opportunities and risks of ALTANA have not changed significantly in the period
under review compared to what was depicted in the 2008 Annual Report and are still assessed by
ALTANA ’s management as being manageable. The management did not identify any risks which could
endanger the continued existence of the company.



Outlook

Although the demand situation has gradually improved in the past two quarters, the uncertainty con-
cerning the further development of the markets which are relevant for ALTANA is still very high.
Therefore, the Group-wide ongoing programs to save costs and enhance efficiency will be continued.
     On the basis of our business performance in the past nine months and taking into account
the present order situation, we still expect a significantly declining sales and earnings performance for
the business year 2009 compared to 2008. Due to the high uncertainty of the general economic
environment it is still not possible at present to provide any concrete sales and earnings forecast.




                                                                                       Interim Financial Report   9
Interim Financial Statements ALTANA Group
as of September 30, 2009


Income Statement


                                                                                 Q1 – Q3 /             Q1 – Q3 /           Q3 /              Q3 /
                                                                                     2009                 2008            2009              2008
    in € million
    Net sales                                                                         872.2               1,067.5         331.2             350.7


    Cost of sales                                                                   - 563.4                - 656.2       - 205.3          - 218.3
    Gross profit                                                                      308.8                 411.3         125.8             132.4


    Selling and distribution expenses                                               - 120.2                - 139.9        - 42.2            - 45.5
    Research and development expenses                                                 - 52.8                - 54.8        - 17.9            - 18.8
    General administrative expenses                                                   - 58.3                - 62.3        - 18.5            - 20.3
    Other operating income / expenses                                                   - 0.7                     5.2      - 0.4              5.4
    Operating income (EBIT)                                                            76.8                 159.5          46.8              53.2


    Financial income                                                                     1.8                      9.7       0.6               3.5
    Financial expenses                                                                  - 8.7               - 17.7         - 1.8             - 8.4
    Financial result                                                                    - 6.9                 - 8.0        - 1.2             - 4.9


    Income from associated companies                                                     0.5                      0.6       0.2               0.2
    Earnings before taxes (EBT)                                                        70.4                 152.1          45.8              48.5


    Income tax expense                                                                - 22.9                - 50.3        - 13.2            - 16.1
    Net income (EAT)                                                                   47.5                 101.8          32.6              32.4


        thereof attributable to minority interests                                       0.4                      0.3       0.2               0.1
        thereof attributable to shareholders of
        ALTANA AG                                                                      47.1                 101.5          32.4              32.3


    Earnings per share ( EPS1, in €)                                                   0.35                   0.75         0.24              0.24


    Average number of shares outstanding
    (basic, in thousands)1                                                        136,098                135,987        136,098          135,987
1
    There were no potentially diluting effects neither in the period under review nor in the prior-year period.




                                                                                                                            Interim Financial Report   10
Statement of Financial Position


Assets                                                   Sep. 30, 2009         Dec. 31, 2008
in € million
Intangible assets                                                497.1                   510.3
Property, plant and equipment                                    571.3                   584.1
Long-term investments                                              4.6                      6.0
Investments in associated companies                                8.5                      6.6
Income tax receivables                                             0.8                      0.0
Deferred tax assets                                                9.2                      9.4
Other non-current assets                                           4.9                      6.8
Total non-current assets                                       1,096.4                 1,123.2


Inventories                                                      191.6                   219.1
Trade accounts receivable                                        243.8                   207.5
Income tax receivables                                           11.4                    14.8
Other current assets                                              19.0                    24.4
Marketable securities                                             78.4                    56.4
Cash and cash equivalents                                        151.4                   104.2
Total current assets                                             695.6                   626.4


Total assets                                                   1,792.0                 1,749.6




Liabilities, provisions and shareholders’ equity         Sep. 30, 2009         Dec. 31, 2008
in € million
Equity of the shareholders of ALTANA AG                        1,205.0                 1,175.9
Minority interests                                                 2.8                      2.5
Total shareholders’ equity                                     1,207.8                 1,178.4


Non-current debt                                                 107.6                   109.8
Employee benefit obligations                                      86.8                    80.7
Other non-current provisions                                      13.5                    11.6
Deferred tax liabilities                                          52.9                    54.8
Other non-current liabilities                                      7.1                      5.6
Total non-current liabilities                                    267.9                   262.5


Current debt                                                      56.9                    69.3
Trade accounts payable                                            88.5                    77.0
Current accrued income tax                                        69.4                    54.0
Other current provisions                                          79.6                    76.7
Other current liabilities                                         21.9                    31.7
Total current liabilities                                        316.3                   308.7


Total liabilities, provisions and shareholders’ equity         1,792.0                 1,749.6




                                                                         Interim Financial Report   11
Statement of Cash Flows


                                                                      Q1 – Q3 / 2009         Q1 – Q3 / 2008
in € million
Net income                                                                     47.5                    101.8
    Amortization and depreciation on intangible and tangible assets            62.6                     53.6
    Changes in inventories                                                     26.1                    - 23.6
    Changes in trade accounts receivable and other assets                     - 26.9                   - 30.5
    Changes in income taxes                                                    27.9                       5.1
    Changes in provisions                                                      12.3                       5.4
    Changes in trade accounts payable and other liabilities                     4.7                       7.8
    Other                                                                       2.6                       3.9
Cash flow from operating activities                                           156.8                    123.5


    Capital expenditure on intangible and tangible assets                     - 37.3                   - 70.3
    Acquisitions                                                               - 6.6                     - 1.2
    Proceeds from the disposal of intangible and tangible assets                0.8                       4.3
    Proceeds from the sale of the Pharmaceuticals business                    - 14.9                     - 4.0
    Change in marketable securities and long-term investments                 - 21.1                      6.2
Cash flow from investing activities                                           - 79.1                   - 65.0


    Dividends paid                                                            - 13.7                   - 69.4
    Change in long-term debt                                                   - 2.2                     - 3.4
    Change in short-term debt                                                 - 12.4                    26.0
Cash flow from financing activities                                           - 28.3                   - 46.8


    Effect of exchange rate changes                                            - 2.2                      3.0
Change in cash and cash equivalents                                            47.2                     14.7


Cash and cash equivalents as of January 1                                     104.2                     99.5
Cash and cash equivalents as of September 30                                  151.4                    114.2




                                                                                       Interim Financial Report   12
Statement of Comprehensive Income


                                                    Q1 – Q3 / 2009          Q1 – Q3 / 2008
in € million
Net income                                                   47.5                     101.8


Derivative financial instruments                               2.6                      - 4.2
Available-for-sale securities                                  2.8                       0.3
Actuarial gains / losses on benefit pension plans             - 4.5                      8.5
Taxes                                                         - 0.2                     - 1.4
Translation adjustments                                       - 5.1                      7.8
Other comprehensive income                                    - 4.4                    11.0


Comprehensive income for the period                          43.1                     112.8




Statement of Changes in Shareholders’ Equity


                                                    Q1 – Q3 / 2009          Q1 – Q3 / 2008
in € million
Shareholders’ equity (January 1)                          1,178.4                   1,139.4
Comprehensive income                                         43.1                     112.8
Dividend                                                    - 13.7                    - 69.4
Shareholders’ equity (September 30)                       1,207.8                   1,182.8




                                                                      Interim Financial Report   13
Notes

Accounting Principles
This interim report for the period January to September 2009 complies with the International
Financial Reporting Standards (IAS 34). The same accounting policies and valuation principles have
been applied as for the preparation of the 2008 consolidated financial statements.
     This report has not been reviewed by an auditor or audited in accordance with section 317 of
the German Commercial Code (HGB) .


Consolidated Entities
In the period under review, Dick Peters B.V., which was acquired in 2008, was merged with BYK -Cera
B.V. (both companies are part of the Additives & Instruments division with headquarters in the
Netherlands). Apart from this, there were no further significant changes in the scope of consolidated
entities due to acquisitions or divestments, changes in shareholdings or similar transactions under
company law.


Acquisitions
Effective as of March 30, 2009, ALTANA acquired the high-performance additives business of the
DyStar group as part of an asset deal. The acquired business, which generates annual sales of about
€ 7.5 million, was integrated into the Additives & Instruments division.


Shareholders’ Equity
With approval of the Supervisory Board, the Management Board decided on March 17, 2009, to
retire all of the company’s held treasury shares (4,302,104 shares). Therefore, the total number
of ALTANA AG shares decreased from 140,400,000 to 136,097,896. The company’s share capital
decreased correspondingly from € 140,400,000.00 to € 136,097,896.00.


Dividend
On the basis of the resolution of the Annual General Meeting on May 12, 2009, ALTANA ’s share-
holders received a regular dividend of € 0.10 per share for the business year 2008. The dividend
payout amounted to € 13.6 million.


Significant Transactions with Related Parties
In the period under review, transactions with related parties were conducted to the same extent and
of the same kind as recorded in the Annual Report 2008.




                                                                                      Interim Financial Report   14
Further Information
In its meeting on May 12, 2009, the Supervisory Board extended the appointment of Martin Babilas
as Member of the company’s Management Board. With effect from May 3, 2010, Martin Babilas is
reappointed as Member of the Management Board for a period of five years. At the beginning of July
2009, the Supervisory Board extended the appointment of Dr. Matthias L. Wolfgruber as Chief Exec-
utive Officer of ALTANA AG . With effect from July 1, 2010, Dr. Wolfgruber is reappointed as Chairman
of the Management Board for a period of five years.
     Related to the relocation of the aluminum pastes production from the Italian site of the Effect
Pigment’s division to Germany, an impairment of € 5.2 million of property, plant and equipment was
recorded in the third quarter. In the reporting period, ALTANA also recorded impairment losses in the
amount of altogether € 3.0 million which related to shares in an investment fund.
     On September 30, 2009, commitments for intangible assets and property, plant and equipment
totaled € 10.2 million.
     In comparison to the 2008 financial statements, the assumed rate of interest for the valuation
of domestic pension obligations decreased from 5.75 % to 5.25 % as of the end of the reporting
period. As a result, pension obligations as of September 30, 2009, increased by € 4.5 million.
     Our subsidiary OBRON Atlantic Corporation has a shareholding of 49 % in METAPOL S.A. de
C.V. The sole co-shareholder in METAPOL S.A. de C.V. had initiated arbitration proceedings in the
business year 2008 in Mexico against OBRON Atlantic Corporation alleging violation of partner obli-
gations, claiming damages of altogether around € 20 million. We expect that the action will not be
successful. This is why we did not record a respective provision in the Interim Financial Statements.


Events after the Balance Sheet Date
On October 2, 2009, ALTANA acquired through a newly founded U.S. subsidiary the entire business
of Water Ink Technologies Inc. by way of an asset deal. In 2008, net sales of the acquired activities
amounted to approximately U.S. $ 34 million. The business with water-based and UV inks, coatings
and varnishes for narrow web applications will be integrated into the ACTEGA Coatings & Sealants
division.
     The purchase price for the acquired business amounts to € 29.7 million. Total acquisition costs
amount to € 31.0 million, of which € 29.4 million was already paid in cash. The acquired assets and
liabilities are recognized at their estimated fair value. On the basis of a preliminary purchase price allo-
cation, goodwill of € 8.3 million and intangible assets (technologies, customer lists) of € 16.8 million
were identified. In addition, property, plant and equipment and inventories at an amount of € 4.2 million
will be taken over.


On October 22, 2009, SKion GmbH announced its decision to make a new, improved offer for the
acquisition of shares in ALTANA AG and published this decision in accordance with section 10 (1) of
the German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz,
WpÜG) at the same day. SKion plans to make an offer to the shareholders of ALTANA to acquire their
shares for a purchase price of € 14.00 per share in an acceptance period that is expected to last from
mid-November to mid-December 2009.




Legal Disclaimer
This interim report contains forward-looking statements, i.e. current estimates or expectations of future
events or future results. These statements are based on beliefs of ALTANA as well as assumptions
made by and information currently available to ALTANA . Forward-looking statements speak only as of
the date they are made. ALTANA does not intend, and does not assume any obligation, to update
forward-looking statements to reflect facts, circumstances or events that have occurred or changed
after such statements have been made.




                                                                                        Interim Financial Report   15
If you have any queries or require further information, please contact ALTANA AG , Investor Relations.




Contact


ALTANA AG – Investor Relations
Tel + 49 281 670 - 2499
Fax + 49 281 670 - 1114
IR@altana.com


ALTANA AG – Corporate Communications
Tel + 49 281 670 - 200
Fax + 49 281 670 - 1114
press@altana.com


Address:
Abelstr. 43
46483 Wesel
Germany




Financial Calendar

 Preliminary figures on FY 2009                                                        February 4, 2010
 Report on FY 2009                                                                      March 18, 2010
 Press conference                                                                       March 18, 2010
 Report on Q1 2010                                                                          May 6, 2010
 Annual General Meeting                                                                   May 11, 2010
Please note that the above mentioned dates might be subject to changes.



Date of publication: November 5, 2009
This interim report is also available in German.


Imprint
Published by: ALTANA AG
Layout and production: Heisters & Partner, Büro für Kommunikationsdesign


This interim report and further information are also available at our website
www.altana.com.




                                                                                    Interim Financial Report   16

								
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