A hundred-year balance Annual Report 2010 - Uzin Utz AG

the year 2010 was the real crisis year, and is still having
its effects on the current year, although imminent projects
in office and residential construction and EU subsidies
should contribute to the upturn.
Future development of the Uzin Utz Group
Despite the very good chances of a continuing worldwide
economic upturn, the market situation remains unstable
because of certain risk factors. Experience has also
shown that the consequences of the global upturn only
work with a delayed effect on the sectors in which the
Uzin Utz Group operates.
» In the light of these expectations, the Group remains
cautious, but very confident. Unforeseeable developments
beyond the control of the Group, and their concomitant
risks, may still undermine the basis of any forecast.
» From the current point of view and state of knowledge,
the following assessment of the future company
development appears feasible:
» The financial problems of German local authorities
and some European countries are severely hampering the
investment strength of the main markets of the Uzin Utz
Group. Despite this high level of uncertainty and reduced
predictability, we are firmly convinced that we are
well-prepared for the Jubilee year 2011 and for the future
because of the strong market position we have established,
our organisation structure, our broad product
range and our regional diversification.
» Due to this unique position, we are confident that the
stagnation of the construction market will not spread to
the Uzin Utz Group, and that we can therefore expect a
very positive business year 2011. In addition to a further
increase in sales, we also expect an increase in the result
from normal business activities. This performance
will be all the more important since increased costs are
planned for the business year 2011, caused by the forthcoming
Jubilee. In addition to this cost effect, the development
in raw material costs will also constitute an
important factor. In the case of raw materials which are
sensitive to price, demand and volume, contracts will be
concluded with our suppliers which guarantee a specific
offtake quantity, and also a fixed price, for up to one
year.
» The financial situation, which is affected above all by
investments of Uzin Utz AG, will remain relatively stable
in the business year 2011.
» Due to the expected better order situation, a slight
increase in employee numbers is expected. The number
of employees has also been increased by the acquisition
of the Norwegian company Løkken AS by their 20 employees.
» Most of the risks described in the section “Risk report”
also offer opportunities for the Group. Due to its size,
market position and the internal success factors already
described, the Group can and will continue to make
use of every commercially sensible market opportunity
arising in order to increase its market share. The opportunities
offered by strategically sensible company acquisitions
will of course also be examined in detail and
realised where appropriate.
» In particular, the
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environment and sector risks,
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the product risks,
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the financial risks and
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the investment risks
continue to offer outstanding opportunities because of
their applicability to all market players, and in view of
the excellent position of the Group in the areas of product
quality, service and Logistics concept. In addition
to the high quality of the products manufactured, our
unique technical consultation expertise and the ability
to deliver almost anywhere in Europe within 48 hours
form the foundations for sustainable success and optimum
utilisation of the opportunities arising.
» We expect the following development for the course
of business in the segments of western Europe and southern/eastern
Europe: in both segments, we expect sales
to remain stable in comparison to the previous year.
Overall, we expect slowed growth in western Europe.
In our opinion, stronger growth could also set in in southern/eastern
Europe.
Significant events following the end of the business
year
On 1st January 2011, Uzin Utz AG contractually agreed
to acquire 80.4% of the shares of Løkken AS in Skien,
Norway. The acquisition of this sales company creates a
launch platform for Norway and Scandinavia as a whole,
since we have access to an already existing sales network.
» There were no further significant events following the
balance sheet date.
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