100 % FUTURE - ALNO

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Exchange rate risks
Currency exchange-rate risks exist with regard to deliveries to countries outside the Eurozone,
particularly deliveries to Switzerland and the United Kingdom. Currency exchange-rate trends are
subject to constant monitoring. There were no forward currency transactions in place as of the
balance sheet date. ALNO will implement exchange rate hedging measures if new currency risks
arise as part of the further international expansion.
Price risks
The most important commodities for ALNO are wood, plastics and metal. Price changes for these
materials on the market could exert a corresponding impact on the Group’s margin trends.
Materials prices
The market for wood and metal products was confronted with significant price increases in the 2011
fiscal year. The current situation on commodities markets means that a reduction in materials prices
cannot be expected until the final quarter of 2011 at the earliest. In line with this trend, high fuel
prices lead to the expectation that distribution costs will increase above budget. Further bundling
of transported items is indispensable as a countermeasure.
Services
A significant increase in fuel prices is feeding through to particular risks in terms of transportation
cost trends. ALNO has bundled and streamlined its freight consignments in order to counter this.
Market risks
The ALNO Group operates in the kitchen furniture sector, a market that is characterised by intense
competition. Tough price competition on the part of providers, particularly in the lower price ranges,
is resulting in ever greater margin pressure, and is crowding out less competitive manufacturers
at the same time. Activities on the part of competitors and wholesalers/retailers could significantly
reduce the revenues and earnings level of the ALNO Group.
The ALNO Group’s customers are primarily resellers, most of whom are organised into purchasing
associations. If important purchasing associations were to reduce their ordering volumes, cancel
master agreements, be required to file for bankruptcy, and if the ALNO Group proved unable to
acquire new customers to a comparable extent, or if existing customers proved unable to increase
their ordering volumes to the same extent, this might result in a marked decline in capacity utilisation
and revenues, and lead to receivables defaults for the ALNO Group.
In addition, the repositioning of the ALNO Group brand world that was launched in the previous
year, and the new sales structure that has already been set up, must be further established. This
also carries risks.
Germany is the ALNO Group’s primary sales market, and accounts for an approximately 70 % share
of total revenues. The United Kingdom, France, Austria, Switzerland, Spain, Italy and the Benelux
countries are additional notable sales markets. These markets have reported different growth rates
in the past. Particularly markets abroad, such as the Spanish market, have been subject to negative
influences. ALNO AG assumes that individual markets will continue to report different growth rates
in the future, and remain dependent on economic influences.