Corporate Magazine 2012 - Boehringer Ingelheim

In the long term, in addition to the equity, the pensionprovisions and long-term liabilities are also available tothe group. These three items totalled EUR 10,173 millionin 2012, equivalent to 58.8% of total assets. Consequently,long-term disposable capital covers all intangibleand tangible assets, inventories and trade accountsreceivable.While other provisions were up 5.2% year-on-year atEUR 3,330 million, liabilities were reduced by 12.0% toEUR 2,887 million last year, primarily as a result of decreasedliabilities due to banks.The balance sheet and the respective balance sheet ratiosround off the positive picture already shown in the financialposition and results from operations. A combinedevaluation of the net assets, financial position and resultsfrom operations shows that Boehringer Ingelheim is asoundly financed and profitable company.REPORT ON POST-BALANCESHEET DATE EVENTSSince the end of the 2012 financial year, we have notbecome aware of any events that are of material significanceto the group of companies, or could lead to a reappraisalof its assets, financial or earning position.RISK REPORTThe aim of the risk management system implemented atBoehringer Ingelheim is to identify business-specificrisks and, in particular, risks that jeopardise the continuedexistence of the company as early as possible, to assessthem and to reduce them to a reasonable level bymeans of suitable measures. When assessing the risks inthe context of holistic risk management, we also endeavourto take into account the resulting opportunities andincorporate them into the analysis.Boehringer Ingelheim uses an established risk managementsystem that has proved itself over the last few yearsand that was not modified in the 2012 financial year.The persons responsible for the key business areas andfunctions are included in the process of calculating andassessing risks. The group-wide risk and informationsystem ensures that all identified risks are analysed andassessed carefully. Following appropriate classification,adequate countermeasures are initiated and their implementationis consistently monitored.In the year under review, Internal Auditing performedtargeted routine audits as well as extraordinary auditsaround the world. In addition to adherence to legal requirementsand internal group guidelines, the main focalpoints were the functionality of systems, the effectivenessof internal controls for the prevention of lossof assets, and the efficiency of structures and processes.Corresponding adjustments or optimisations were initiatedas necessary. An audit plan approved by the Boardof Managing Directors was largely followed.The global orientation of our business activities resultsin currency risks due to exchange rate volatility. Thegroup monitors these risks at regular intervals and limitsthem by means of corresponding hedging strategies andappropriate financial instruments, such as forward exchangecontracts. From the portfolio of trade accountsreceivable and trade accounts payable, we did not identifyany extraordinary risks beyond the usual level in thesector for the group. The same applies to possible defaultrisks for receivables, which are largely hedged againsteconomic and political risks. We will continue to carefullytrack macroeconomic and industry-specific risks inorder to allow us to respond to negative changes in atimely manner.The group pursues a conservative investment strategy inthe management of its financial assets. This is reflectedin the defensive orientation of its portfolio, which is focusedon European Economic and Monetary Union36Boehringer Ingelheim annual report 2012