Simply effective – reporting and planning also in Russian
Industry: chemical industry
Headquarters: Vienna (Austria)
Employees: about 23,000
Project: introducing a professional software for controlling of equity holding; effective unification of reporting issues, taking into account all companies of the OSTCHEM Group
Modules: LucaNet.Financial Consolidation, LucaNet.Planner, LucaNet.Importer
After three years, OSTCHEM Group with headquarters in Vienna urgently required a consolidated financial statement due to new legislation. Because of this and the company´s fast growth, a unified system for planning, controlling and consolidation had to be established promptly. First, a professional controlling with reporting and planning was implemented at the company by LucaNet.
OSTCHEM Group is a former Eastern European producer of important chemical raw and base materials. In 2004 OSTCHEM Holding AG was incorporated in Vienna to create a parent company operating according to western standards for the existing production and distribution companies. Thereby, the holding company functioned as a central company management and as an umbrella for the production plants and distribution companies in such countries as Ukraine, Estonia, Cyprus and Switzerland.
The success of OSTCHEM and the accompanying expansion of its structures and requirements inevitably led to the risk of losing an overview. A unification of reporting issues, taking into account all companies, had to be done promptly and effectively. LucaNet was found in the simplest of all ways, by internet research. "After my search on the internet and my enquires with more software providers, LucaNet has responded in a fast and competent manner. I have promised my shareholders to promptly implement the controlling of equity holding within the Group. LucaNet has assured me of a short implementation and easy operation and it kept its word", says Matthäus Ebinal, Managing Director at OSTCHEM Germany GmbH.
Optimized and standardised reporting with LucaNet
Of course, the relevant data had already been available before the implementation of LucaNet, but they were collected and then processed with MS Excel in Kiev, according to an elaborately organized process. The Branch was controlled from Hamburg, which meant, at that time, that companies` reporting packages were collected three and imported in LucaNet. They contained the target and performance figures, forecasts and statistical data, and all this information in four languages.
The international controlling of the Group’s equity holding envisaged monthly reports, where, for example, income statement and balance sheet were prepared in form of a detailed controlling report. After consolidating and checking the relevant data, the reports in Russian and English were created by LucaNet-Excel-Reporting.
Apart from Germany, LucaNet also worked in Ukraine. The employees of the companies have access to databases used by LucaNet for drawing up a consolidated financial statement, so that the relevant current data of individual companies can be imported locally. Moreover, LucaNet is increasingly applied by Ukrainian companies for controlling purposes. Thus, apart from traditional financial data, both target and performance product information, capacities, utilizations, employee numbers and prices are also covered. Based on that, the crucial key figures which are necessary for internal and external requirements can be determined automatically. The actual and projected figures comparisons regarding sales volume and turnover of individual products and capacity utilisation facilitate analysing business activity on an on-going basis and offer comprehensive control possibilities.
Combining different consolidated groups in one database
The OSTCHEM Group is represented in seven countries and correspondingly, it operates its business in seven currencies. Moreover, the companies are entirely different, as far as their structure, balance sheet and profit and loss account are concerned. Only the consolidated accounts framework is available, so a detailed reproduction of all companies within one database would be very difficult. The challenge for LucaNet was to reproduce every group by itself and consolidate them in a cumulative database, first separately and then jointly. Especially for this purpose, the possibility to exchange data between two LucaNet databases was created. Thus, various companies can keep their significantly different balance sheet and profit and loss account structures in separate databases, and can combine them together within the framework of a joint consolidation in a target database.
"Apart from the functionalities of LucaNet, we have been convinced by the user-friendliness and short implementation time. The competent support of the consultants on-site or by telephone is also a very big advantage!"
Matthäus Ebinal, Managing Director
OSTCHEM Germany GmbH