ANNUAL REPORT 2004 - ELMOS Semiconductor AG
ANNUAL REPORT 2004 - ELMOS Semiconductor AG
ANNUAL REPORT 2004 - ELMOS Semiconductor AG
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
GROUP STATUS <strong>REPORT</strong> FINANCIAL STATEMENTS GROUP STRUCTURE GLOSSARY<br />
Business and economic framework<br />
Future of automotive electronics<br />
Profit, financial and assets situation<br />
Supplementary report<br />
ÿ Risk report<br />
Outlook report<br />
Production lines operated<br />
independently<br />
PARTICIPATIONS<br />
The high allocation of investments to the subsidiaries abroad results in an increased<br />
obligation to detect and minimize possible financial risks by means of adequate con-<br />
trolling instruments and continuous economic analyses as soon as possible. Business<br />
plans and budgets have been devised for all subsidiary companies in order to make<br />
sure that no existential risks will ensue from the business activity of those compa-<br />
nies.<br />
INTERRUPTION OF BUSINESS<br />
Apart from the business risks already described and discussed, according to <strong>ELMOS</strong><br />
assessment the single entrepreneurial risk capable of significantly damaging the de-<br />
velopment of the Group and jeopardizing its continued existence is the risk of the<br />
destruction of production facilities by fire or other disasters. Although the risk of the<br />
interruption of business by such an occurrence is adequately covered by insurance, a<br />
significant threat of losing key customers in such a case remains. This risk cannot be<br />
insured against.<br />
<strong>ELMOS</strong> already reduced this risk by its operation of an additional production line<br />
(200mm line) at the Fraunhofer Institute in Duisburg beginning in 2006. At a later<br />
point in time another production line can be constructed in a separate building at the<br />
Dortmund location. Thus <strong>ELMOS</strong> will have several independent production lines at<br />
its disposal which can be operated independently of each other.<br />
The other usual and insurable risks such as fire, interruption during fire-fighting<br />
operations, water, storm, theft, third party liability and, in particular, product liability,<br />
also in the U.S., and costs of a possible recall action are adequately covered by insur-<br />
ance. Further risks capable of significantly damaging the development of the Group<br />
or jeopardizing its continued existence are not discernable at present.<br />
elmos annual report <strong>2004</strong><br />
67