The good prospects are based on the all-embracing ... - ALNO AG

106 ConsoLidatEd FinanCiaL statEmEnts | manaGEmEnt oF FinanCiaL Risks
<strong>The</strong> consolidation entries in conjunction with segment
assets <strong>are</strong> made up as follows:
in '000 EUR 2011 2010
Capital consolidation – 108,443 – 108,367
Debt consolidation – 44,314 – 30,718
At-equity measurement – 4,129 – 1,819
Other consolidation entries – 4,517 – 5,122
Total – 161,403 – 146,026
<strong>The</strong> other consolidation entries refer to deferred taxes in
the amount of EUR 4,031 thousand (previous year: EUR
4,479 thousand), the elimination of interim results in inventories
and the impairment losses on fixed assets which <strong>are</strong>
all netted at Group level.
<strong>The</strong> consolidation entries in conjunction with segment
liabilities comprise the elimination of intra-Group liabilities
and offsetting deferred taxes.
Regional sales <strong>are</strong> determined according to the place of
delivery. <strong>The</strong>re is no external customer in the ALNO Group
with whom 10% or more of the total sales revenue is
generated.
Total sales according to regions
in '000 EUR 2011 2010
Germany 326,397 334,620
Rest of Europe 105,456 108,089
Other foreign countries 20,957 24,588
Total 452,810 467,297
Intangible assets, property, plant
and equipment and investments
measured at equity in '000 EUR 2011 2010
Germany 80,349 79,536
Rest of Europe 1 11
Total 80,350 79,547
G. management of financial
risks
1. rIsK MaNaGeMeNT PrINCIPles
<strong>The</strong> basic principles of financial policy <strong>are</strong> defined annually
by the Board of Management and monitored by the Supervisory
Board. Group Treasury is responsible for implementing
the financial policy, as well as for the ongoing risk
management. Certain transactions require prior approval by
the Board of Management, which is also regularly informed
of the scope and magnitude of the current risk appraisal.
Effective management of the market risks is one of the main
Treasury responsibilities. Simulations using various worst
case and market scenarios <strong>are</strong> performed to assess the
impacts of different conditions in the marketplace.
<strong>The</strong> Group is exposed to financial risks from financial
assets and liabilities, as well as from planned transactions.
Financial assets, such as trade accounts receivable and
liquid assets, <strong>are</strong> the direct result of operating activities.
Financial assets also include securities which serve as
hedges for claims from pre-retirement part-time working
arrangements. <strong>The</strong> financial liabilities primarily comprise
bank loans, other financial liabilities and loans on current
account, as well as trade accounts payable. <strong>The</strong> main
purpose of financial liabilities is to finance the Group's business
operations.
<strong>The</strong> main risks arising for the Group from the financial assets
and liabilities comprise interest rate risks, liquidity risks, currency
risks and risk of default.
Due to the Group's low-risk investment strategy, the risk
of changes in the fair value of securities (price risk) is not
a material risk from a Group vantage.