Annual Report 2009/10 Excellence in Retailing - Douglas Holding

“La Margerita” in organic quality bearing the “Rainforest Alliance” seal since 2009. The
products Grand Cru Chocolates “Iara” and “Bejofo” are also organically certified and are
produced from cultivated high-grade cocoa beans.
OPPORTUNITIES AND RISKS SITUATION
Opportunities and risks situation unchanged
Opportunities and risk management
In principle, the DOUGLAS Group takes risks only when they are deemed controllable
and the corresponding opportunities are likely to provide an appropriate increase in
value.
Opportunities and risks are identified by experienced risk managers appointed for
each Group company in Germany and abroad through clearly defined processes and with
the assistance of a standard, centrally administered opportunities and risk management
system. This system allows a monetary evaluation of opportunities and risks as well as
the documentation of measures applied.
The system’s effectiveness and efficiency is periodically assessed by the Group’s internal
auditing unit and the independent auditor. The findings therefrom are presented to
the Executive Board and the Supervisory Board.
The Executive Board also receives an overview of identified opportunities and risks at
regular intervals to assure that information is received in a timely manner. In the event
of sudden and material risks being incurred, the Executive Board immediately receives
all necessary information.
Environment and business opportunities and risks
The macroeconomic development in the all-important markets of the DOUGLAS Group
is extremely hard to estimate; and it has a material impact on the net assets, financial
position and result of operations of the Group. Thus, a downward trend in retail sales
in Europe presents a risk. By positive contrast, a significantly growing consumption demand
presents an opportunity for the Group. For purposes of responding to changes in
the framework conditions in a timely manner, not only are budget reports regularly updated,
but scenario analyses are also prepared.
The risks from internationalization are countered by the DOUGLAS Group by adjusting
the respective product lines to the country-specific characteristics. Moreover, the national
political, economic and legal framework conditions are carefully monitored and
evaluated by experienced local managing directors.
For purposes of optimizing the store network to the current and anticipated future
framework conditions, not only were numerous openings and acquisitions carried out,
but stores closed as well. In the 2008/09 fiscal year a special program was conducted to
streamline the store network. This incorporated the closure of those stores that did not
Management Report
Key results
Business activities and operating environment
Net assets, financial position and result of operations
DOUGLAS HOLDING AG
Subsequent events
Control system and success factors
Opportunities and risks situation
Statutory disclosures
Forecast and overall assessment
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