Technologies · Systems · Solutions - Dürr

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Order handling and business processes
We complete large-scale projects valued in the millions on a regular basis. These
projects are characterized by a high degree of technical complexity and long turnaround
times. We use appropriate tools to minimize schedule and earnings risks, including
project management manuals and risk and opportunity checklists. The progress of
large systems projects is analyzed on a regular basis by the Board of Management
and other senior managers.
Dürr’s most important key processes are planning, design, and order handling. In addition,
our risk management system also covers support processes. The risk management
tools we use to control risks in each of our business processes are as diverse
as the processes themselves.
Suppliers
With a view to the procurement side, quality and the price-performance ratio are of
particular importance to Dürr. We depend on reliable, high-quality, cost-effective supply
sources. That is why our experts regularly monitor the quality standards of the
suppliers and their reliability in working together. To reduce procurement risks, we
maintain long-term business relationships, especially with preferred suppliers of
technically complex components.
Currency and interest rate risks
Because Dürr operates worldwide, we must take exchange rate fluctuations into
account. For us, the primary risks associated with differences in foreign exchange
rates arise when we convert business figures from our foreign subsidiaries into
euros (translation risk). The currency risk from product exports (transaction risk) is
relatively low since a large portion of our added value is generated locally in the
countries where the orders are filed.
We use interest rate swaps to counter interest rate risks and fluctuations in the value
of financial instruments. We use derivative financial instruments to protect ourselves
against currency risks. In this way, we reduce the currency risk for expected cash
flows in foreign currencies from operations and from financing transactions within the
Group.
All financial derivatives and related underlyings are continually and regularly monitored
and evaluated within the framework of a Board of Management directive.
We enter into derivative contracts only with banks that have a strong credit standing.
All interest rate swaps are transacted through German banks. Further information
regarding hedging activities can be found in the notes to the consolidated financial
statements.
Information technology
Information technology is of key importance to Dürr’s business processes. We use the
latest security solutions to protect our data and infrastructure against intrusion. We
have also continuously increased the availability and fail-safeness of our server and
storage systems for business-critical applications.
Legal dispute with Alstom
Integral parts of the acquisition of the Air Industries Group from Alstom in 2000 were
an equity guarantee for the consolidated group and a margin guarantee for selected
orders. The two parties – Alstom S.A. on one side, and Dürr AG and Dürr Systems