Annual Report 2007 - Muehlhan AG

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the dust-free µ-jet process that we developed is a process
which combines the dryblasting process with the environmentally-friendly
water-jet process, and in doing so actually
surpasses the productivity of the dryblasting process.
this process has proven to be particularly suitable for work
on offshore facilities, because surface protection work
can be carried out even during the operation of the facility
because dust is prevented. the µ-jet process is based on
a jet technology for which we have finalized an exclusive
global licensing agreement with the patent holder. We
have developed this process further for the purposes
of marine surface protection and consider it a clear
technological advantage over our competitors.
risK and opportunity
ManageMent
GENERAL ASSESSMENT
Risks jeopardizing the existence
of the Group are not apparent
from today’s perspective, there are no risks jeopardizing
the existence of the Group worthy to mention that could
have a material influence on the company’s position with
respect to net assets, financial position and results of
operations. the significant decrease in liquidity in the
fiscal year is attributed to a combination of one-time effects
(investment in separate assets of securities; financing of
losses of subsidiaries, especially in the uSa). both our
organisation and our control systems are suitable for
managing exis ting risks in the best possible manner, and
noting newly emerging risks as quickly as possible. the
organisational changes in the fiscal year 2007, in particular
the structural adjustments of our uS operations, the
implementation of a technical audit, and the consistent
use throughout the Group of the Nod operational data
acquisition system have made significant contributions
for this purpose.
With ongoing market observations and a regular exchange
within and outside of the Group, we ensure that we detect
opportunities that our submarkets offer to us in a timely
manner.
in principle, the risk policy of the Muehlhan Group is based
on increasing the value of the company through profitable
growth. Mandatory internal company rules of conduct are
reviewed and supported by means of control measures.
RISK MANAGEMENT SYSTEM
Introduction of a risk management system
pursuant to § 91 paragraph 2 of the German Stock
Corporations act (aktiengesetz / aktG), the Executive
board must take appropriate steps, and set up a monitoring
system in particular, so that risks that threaten the
company as a going concern are identified in a timely
manner. for this purpose the company makes use of an
adequate reporting system, which organisationally is the
responsibility of the Executive board. in addition to quantitative
reporting in the form of controlling reports, the
Executive board receives qualitative reports from the
specialized departments of the holding company. in this
manner, we ensure throughout the Group that all
managing directors at the subsidiary companies and
all departments are regularly obligated to engage in an
independent review of their work and responsibilities
for possible liability risks, financial risks, and risks with
regard to customer relationships. the Executive board of
the Group will receive reports with respect to important
issues from the departments at different intervals, but at
least once each month. in order to identify trouble at the
subsidiary companies’ operational construction sites, and
to take care of it as quickly as possible, the progress of
the work and the hours worked on the individual contracts
is recorded and compared to the budgeted data.
We began the systematical introduction of a risk management
information system during the past fiscal year, with
which all risks can be documented, and with which measures
for the minimisation of these risks are updated on
a regular basis throughout the Group.