Südzucker International Finance B. V. Südzucker AG ... - Xetra

Risks for future developmentsSüdzucker has developed and implemented anintegrated system for the timely identification andmonitoring of specific risks for the group. Theobjective is the timely identification andquantification of risks related to corporate activities.On this basis, strategic and operating opportunitiescan be extensively analysed and optimised.Risk management system of the Südzucker GroupSüdzucker's risk management system is based on riskcontrolling at operating level and on strategiccontrolling of investments, an internal control systemwhich is the responsibility of the group internal auditdepartment and an early warning system todetermine risks endangering the existence of thegroup as a going concern.Risk controlling at operating level andstrategic controlling of investmentsThe main thrust of strategic controlling ofinvestments is the strategic planning of segmentsand business divisions. Significant developmentsinfluencing the business are recorded and evaluated.Opportunities and risks are considered based onmarket and competitive analyses, and these form thebasis for management decisions.Investment controlling also supervises the setting ofbusiness objectives and monitors group companiesby using uniform key ratios. It evaluates theinvestment portfolio with the aim of optimising theinvestment structure and provides assistance withacquisitions.Operating risk controlling is implemented by theoperating controlling department. The executiveboard is continuously kept informed via an extensivereporting system and, if relevant, by ad hoc reports.Internal control system/internal auditThe group’s internal audit department carries out itscontrol functions at group companies and reportsdirectly to the executive board. It checks andevaluates the security, financial viability andcorrectness of business processes, together with theeffectiveness of the internal control system in thecorporate area.Early warning system to determine risksendangering the company as a going concernThe possible effects of international and nationaltrade agreements and market regulations are alreadyanalysed at an early stage and incorporated as partof the risk management system.Südzucker is subject to market risks arising fromchanges in foreign exchange rates, interest rates andequity prices. Treasury and foreign currencymanagement follow detailed guidelines. Foreigncurrency and interest rate derivatives are recordedtimely and completely at group level and are subjectto a continuous monthly valuation process.Standards have been developed to monitor risksarising from products produced and sold by theSüdzucker Group, which are constantly checked bymeans of continuous controls. These measures aremade mainly as part of the quality control program.The integration of quality management, safety atwork and environmental management establishesoptimal conditions for timely risk determination andfor implementing steps to minimise risk.Based on current reports by the internal riskmanagement working group and in its own estimation,the executive board has determined no matters whichcould endanger the group’s existence as a goingconcern.F-79