We would be stupid not to use these assets

The Germany lives at this time to the rhythm of the football World Cup. Will this event impact on business activity

The World Cup is one of the few unifying events at the global level. It has the power to bring people to communicate and take to the streets for a celebration. Most economists believe that the German household consumption should strongly increase in June, especially as long as the national team will be in the running! In 1998, when the France won, the country has lived on a cloud for several months. Sport and performance of the German team, the World Cup can put the spotlight on Europe and better understanding in the world the Germany of today. It is the first event important since the reunification of the country.

Do you feel this return to optimism that is talked about in Germany since the orders of Angela Merkel

I will have preferred that the September 2005 elections lead to a clear parliamentary majority. But two large formations were able to agree to avoid paralysis and gave a direction for the next two years. I see this a solid foundation so that the public and business resumed confidence, indeed. The country can move forward and investment return. For the first time since the introduction of the euro, the Germany is stronger than the France growing.

Tax on added value in Germany however will increase from 16 to 19 on January 1. This you concern for consumption

This increase represents a solution to get more money into the coffers of the State, what is needed. As a consumer and a consumer business executive, I hate any impeding consumption. The impact of this measure on household spending, however, remains unknown. Look at the price of gasoline. It has grown significantly and some thought German motorists to leave their car in the garage. However people have never led.

On the other hand can Beiersdorf find growth in Europe this year

We have indeed experienced three years of stagnation in Europe, but for about six months, the indicators are much more positive, especially because economic growth will be from 2 in the countries of the Union this year. In addition to the optimism on the rise in Germany, the Italy, the Spain and the Portugal send encouraging signals. We hope that the United Kingdom, which has experienced a break last year after several years of strong development, will start. Eastern Europe is growing very rapidly. The France will be interesting this year because the Government is seeking to stimulate consumption.

What are the objectives that you attach to your group

As we announced it late 2005, we seek to grow at a higher rate of 2 on average in the market, and qualitatively. When the German market tramples underfoot, I do not expect a growth of 10. However in China, where the cosmetics market grew last year by 15, Beiersdorf could grow by 50. The objective is to increase our turnover as our market share and to be in the head and the bathroom of the consumers. We aim 5.5 global market share, all channels of distribution, by 2010. We have also identified China, the Russia, the Brazil and the India as the markets where we have the most potential and where we must redouble our energy and investment. We ensure at the same time that our European business base strengthened and this means innovation and creativity.

Your industrial base in Europe is reduced on the other hand. What will be the content of upcoming restructuring

We decided last year to work on our production and logistics chain. After ten years of productivity gains, we are sitting on too large manufacturing capacity. This is the case in Europe where the rate of use of our plants is less than 50. To reduce the overcapacity, will be in three years who have 220 million euros in restructuring, to save EUR 100 million per year from 2006. We thus announced our wish to close our factory Dutch and Swedish, and a unit in Hamburg, and remove our logistical platforms in Belgium and the Netherlands. This is not all of the plan, but insofar as it comes to men and women, we give priority to the social partners before any announcement. In parallel, we are working on the implementation of a management system that will ensure linear always focus our clients maximum lowering our stocks.

Can Western Europe remain an area of production

Absolutely, our countries have a scientific culture, a good level of education, creativity and support of Governments. We would be stupid not to use these assets. We must however remain competitive with other areas of production. Central Europe up to the Russia plays an important role in this regard. We also have a factory in Poland.

Are you in favour of a new extension of the European Community

Without a doubt. This makes the transfer of goods easier and faster, give more transparency to the market and creates new opportunities. You will not find many industrial hostile to the extension of their internal market! Since the Poland entry into the European family, Beiersdorf is much more powerful in this country. We could find other ways to improve our position in this important market of Central Europe, but facilitate us life.

The city state of Hamburg helped Beiersdorf to remain in German hands in 2003, taking 10 of the capital. It makes you a follower of economic patriotism

While we were in danger to be purchased by a large American Group, we

The Germany lives at this time to the rhythm of the football World Cup. Will this event impact on business activity

The World Cup is one of the few unifying events at the global level. It has the power to bring people to communicate and take to the streets for a celebration. Most economists believe that the German household consumption should strongly increase in June, especially as long as the national team will be in the running! In 1998, when the France won, the country has lived on a cloud for several months. Sport and performance of the German team, the World Cup can put the spotlight on Europe and better understanding in the world the Germany of today. It is the first event important since the reunification of the country.

Do you feel this return to optimism that is talked about in Germany since the orders of Angela Merkel

I will have preferred that the September 2005 elections lead to a clear parliamentary majority. But two large formations were able to agree to avoid paralysis and gave a direction for the next two years. I see this a solid foundation so that the public and business resumed confidence, indeed. The country can move forward and investment return. For the first time since the introduction of the euro, the Germany is stronger than the France growing.

Tax on added value in Germany however will increase from 16 to 19 on January 1. This you concern for consumption

This increase represents a solution to get more money into the coffers of the State, what is needed. As a consumer and a consumer business executive, I hate any impeding consumption. The impact of this measure on household spending, however, remains unknown. Look at the price of gasoline. It has grown significantly and some thought German motorists to leave their car in the garage. However people have never led.

On the other hand can Beiersdorf find growth in Europe this year

We have indeed experienced three years of stagnation in Europe, but for about six months, the indicators are much more positive, especially because economic growth will be from 2 in the countries of the Union this year. In addition to the optimism on the rise in Germany, the Italy, the Spain and the Portugal send encouraging signals. We hope that the United Kingdom, which has experienced a break last year after several years of strong development, will start. Eastern Europe is growing very rapidly. The France will be interesting this year because the Government is seeking to stimulate consumption.

What are the objectives that you attach to your group

As we announced it late 2005, we seek to grow at a higher rate of 2 on average in the market, and qualitatively. When the German market tramples underfoot, I do not expect a growth of 10. However in China, where the cosmetics market grew last year by 15, Beiersdorf could grow by 50. The objective is to increase our turnover as our market share and to be in the head and the bathroom of the consumers. We aim 5.5 global market share, all channels of distribution, by 2010. We have also identified China, the Russia, the Brazil and the India as the markets where we have the most potential and where we must redouble our energy and investment. We ensure at the same time that our European business base strengthened and this means innovation and creativity.

Your industrial base in Europe is reduced on the other hand. What will be the content of upcoming restructuring

We decided last year to work on our production and logistics chain. After ten years of productivity gains, we are sitting on too large manufacturing capacity. This is the case in Europe where the rate of use of our plants is less than 50. To reduce the overcapacity, will be in three years who have 220 million euros in restructuring, to save EUR 100 million per year from 2006. We thus announced our wish to close our factory Dutch and Swedish, and a unit in Hamburg, and remove our logistical platforms in Belgium and the Netherlands. This is not all of the plan, but insofar as it comes to men and women, we give priority to the social partners before any announcement. In parallel, we are working on the implementation of a management system that will ensure linear always focus our clients maximum lowering our stocks.

Can Western Europe remain an area of production

Absolutely, our countries have a scientific culture, a good level of education, creativity and support of Governments. We would be stupid not to use these assets. We must however remain competitive with other areas of production. Central Europe up to the Russia plays an important role in this regard. We also have a factory in Poland.

Are you in favour of a new extension of the European Community

Without a doubt. This makes the transfer of goods easier and faster, give more transparency to the market and creates new opportunities. You will not find many industrial hostile to the extension of their internal market! Since the Poland entry into the European family, Beiersdorf is much more powerful in this country. We could find other ways to improve our position in this important market of Central Europe, but facilitate us life.

The city state of Hamburg helped Beiersdorf to remain in German hands in 2003, taking 10 of the capital. It makes you a follower of economic patriotism

While we were in danger to be purchased by a large American Group, we