Business Report 2005 - Interseroh

Formation of New Companies
Formation and registration of INTERSEROH d.o.o., Croatia, was completed on 4 May 2005.
Assignment
ISD INTERSEROH Dienstleistungs GmbH transferred its operations in paper and plastic raw materials
trading to ISR INTERSEROH Rohstoffe GmbH, Cologne, with legal effect from 1 January 2005 and
operational effect from 1 July 2005.
Renaming of Companies
The French company INTERSEROH CDI S.A.S. has been operating under the name of
INTERSEROH France S.A.S. since 1 September 2005.
Management Board
Michael Mevissen, responsible for the services and raw materials trading segment, left the
Management Board of INTERSEROH AG on 30 June 2005. He was succeeded by Roland Stroese on
8 October 2005.
Conversion to SAP
In order to standardise the financial accounting and controlling software used in the group and to
simplify reporting, the complete financial accounting and cost accounting including fixed asset
accounting in the subsidiaries of the INTERSEROH Group are being converted to SAP successively
beginning with the current financial year. This process will prospectively be completed in October
2006. The higher level of automation in reporting will enable better and sooner compliance with the
stricter requirements resulting from the change to application of the International Financial Reporting
Standards (IFRS). The related effects will be cost savings, higher efficiency and better quality.
15. Total Return on Capital Employed as Management Instrument
The Management Board of INTERSEROH AG stipulates the strategy for the corporate divisions and
group subsidiaries and manages their business. The management system aims at a reasonable return
on capital employed. This applies to both equity and debt capital. To meet this goal, the main
management parameter for group companies is the total return on capital employed. This is defined in
the group as the ratio of EBIT to total capital.
In addition to this, the discounted cash flow method is used to valuate investments, both in
financial and fixed assets. The future payments surpluses are discounted with the help of the weighted
capital costs on the valuation date. Together with a required minimum return and a minimum
amortisation period, the cash values achieved by every single investment should secure and expand
the total return on capital employed of the group.
Due to the volatility of raw material prices, the return on sales often named in other groups is
not a telling parameter for the INTERSEROH Group as a total entity.
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