Annual Report 2009/2010 Geschäftsbericht 2009/2010 ... - biolitec AG

46 Management Report Konzernlagebericht
Opportunities and Risks
Opportunities
biolitec AG operates in the field of biotechnology as well as medical technology. Over the next two years
these two fields should become future markets which are influenced by certain factors. Amongst these
factors are an ageing population as well as increasing healthcare costs. In industrial countries these rising
healthcare expenditures are a consequence of a demand for modern, minimally invasive treatment
methods respectively the trend towards privately paid treatments, especially in aesthetic medicine. As
a provider of minimally invasive treatments in the field of aesthetics as well as medical technology we
assume that biolitec will also benefit from these factors.
The biolitec group has developed various minimally invasive treatment methods, in the fields of aesthetics
and medical technology, characterised by short rehabilitation times, minimal side effects and
significant cost saving potential. This will help to increase market share of minimally invasive laser treatments
as well as of the PDT. Even in developed countries e.g. ELVeS has a market share of only 10 %.
Operations with classical, less patient friendly methods still prevail, so that enormous growth potential
still exists even for our established methods.
Furthermore, biolitec group’s Board of Executives believes that it has a number of competitive advantages
which provide the opportunity to expand the customer base and hence take full advantage of the
market potential. biolitec views itself as a technological leader in diode lasers, fiber optic disposables as
well as photodynamic drugs and possess a strong international presence with subsidiaries in the core
markets Europe, USA, South America and Asia as well as an extensive network of distributors. Likewise,
the innovative strength and technical expertise in all the addressed medtech/biotech fields offer worldwide
market opportunities biolitec wants to benefit from.
The incorporation of RFID recognition technologies in the company’s latest product line of lasers and
devices enhances the systems safety and allows the implementation of single and controlled use concepts
to enhance disposable revenue.
Risks and risk management
Risk management
As an internationally operating company the biolitec group is exposed to various risks. These can directly
influence managerial decisions and the results. By continuous analyses of markets, competition
and the business sector possible risks that could negatively influence assets, financial situation and
profitability can be identified at an early stage. The main focus of our management is to evaluate risks
and make decisions for adequate strategies. Management places emphasis not on minimizing or avoiding
the risk, but on the conscious and active control of risks and chances, as stated in the companies risk
management principles. The implementation of modern software systems across the group allow upto-date
monitoring of all business-related operations. Risk monitoring and control in order to avoid financial
risks is achieved by implementing instruments like yearly financial planning and event-orientated
analysis of planning variances. Hence possible risks can be identified in an early stage and appropriate
counter-measures initiated.