Group - L. Possehl & Co. mbH

StratEGiC dirECtioN aNd
MaNaGEMENt PHiLoSoPHy
Possehl aims to grow profitably in all segments on a sustainable
basis and to increase the enterprise value. Growth results from both
the expansion of existing business and the strategic acquisition of
new business units. Along with profitability and a long-term orientation,
the diversification of the Group’s portfolio plays an essential role.
This reflects the interest of the Possehl-Stiftung as shareholder in the
long-term profitable growth of the Group. With its independent and
productive business segments, the Group has a solid foundation for
continued success.
Our management philosophy is aimed at providing the managers
of the individual companies with as much operational freedom as possible
to develop and implement new ideas. In order to executive this
management philosophy successfully and to achieve the Group’s ambitious
goals, we require highly motivated and productive employees,
who are aware of their contribution to the Group’s success and conduct
themselves in a success-oriented, customer-focused manner. Managing
directors and managers have a financial stake in the success of
the Group or segment through performance-based incentives.
2007 ECoNoMiC ENviroNMENt
GROSS DOMESTIC PRODUCT 2007
Real change compared to previous year in %
Germany 2.6
Eurozone 2.6
United States of America 2.2
East Asia (without China, India, and Japan) 5.2
China 11.4
Global economy overall 5.1
Source: Kiel Institute for the World Economy – World Economy in Winter 2007
Global Economic development
The global economy continued to develop positively during the fiscal
year. In 2007, high global economic growth continued at a 5.1 %
pace, only slightly lower than in 2006. Despite higher prices in the international
energy and raw materials markets, global growth remained
robust. However, toward the end of the year the US real estate crisis
began to hinder global economic growth. While the economies of
developing countries grew at an above-average 6.2 % rate, growth in
industrial countries was only 2.4 %.
Letter from the Executive Board
Company Boards
Report of the Controlling Boards
Successful over the Long Term
Group Management Report
Consolidated Financial Statements
Further Information
Once again the Chinese economy was the driver of growth during
the fiscal year. However, other Asian countries as well as Latin America
and Central and Eastern Europe produced strong economic growth in
2007.
At the same time, growth slowed in the USA. The weak real estate
market caused by the subprime mortgage crisis has perceptibly impaired
economic growth.
The Eurozone continued to develop positively with GDP growth of
2.6 %. Economic growth was also encouraging in Germany, driven mostly
by exports. The increase in the external value of the Euro has not
materially impaired the growth of the export economy.
US dollar Substantially Weaker
The US dollar (USD) continued to come under pressure in international
currency markets and trust in the US currency steadily declined
during the year. The Euro in particular appreciated against the USD
during the past 12 months. At the beginning of the year, the Euro was
worth approximately USD 1.32. At the end, the rate was USD 1.47.
The average over the year was USD 1.37/€, about 10 % below the last
year’s rate.
US DOLLAR/EURO ExCHANGE RATE IN 2007
(ECB REFERENCE RATE)
1.5
1,5
1.4
1,4
1.3
1,3
1.2
1,2
Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
17