© Roland Berger Strategy Consultants

Berlin's Best

<h>The future</h> of the transatlantic partnership was the focus of the third annual 'Best of European Business' award in Berlin. The country's leading chemical company and a global healthcare player in were among those recognized against the historic backdrop of the Allied Forces Museum.

Souvenirs of the Berlin airlift, uniforms of American soldiers stationed in Germany throughout the years, even one of Elvis Presley's earliest stage outfits provided the backdrop for the third annual 'Best of European Business' (BEB) award in Berlin. Aside from honoring Germany's outstanding corporate performers in two categories – Growth and Cross-border Mergers & Acquisitions – this year's BEB initiative took a closer look at the transatlantic partnership. In cooperation with the Atlantik Brücke, one of the oldest non-governmental organizations committed to promoting dialogue between Germany and the United States, Roland Berger Strategy Consultants awarded a special prize to a business leader who demonstrated long-standing personal and professional engagement toward promoting mutual understanding: Airbus CEO, Dr. Thomas Enders.

Europe – On the road to recovery?

In his opening speech, the consultancy's CEO, Dr. Burkhard Schwenker, described the award series as a journey: One that had started in Europe, with the examination of the ingredients that gave European companies the strength to compete on a global market in 2006; then, in the competition's second year, a strategic look at Europe's largest partner to the East, Russia and now, an extension across the Atlantic, for a realistic assessment of the challenges and possibilities of the German-American partnership.

Europe, Schwenker said, no longer had to hide behind its achievements. Whereas economic prospects had still been weak, when the BEB competition was launched, today's situation entirely different. Where the European Union had still been spending most of its sizeable budget for agricultural subsidies, payments toward enhancing the Union's competitive prowess were now the largest single area of funding. Europe was "on track" toward achieving its Lisbon Agenda goals, however lofty they may have seemed at their inception in 2000. But all of these macro-economic achievements, including a solid 2% overall growth rate – can only be realized in an economy where corporate performance remains strong. Highlighting best practice models through competitions like 'Best of European Business' was thus a means to demonstrate how companies had used the knowledge of operating in a highly diverse internal market to their benefit on a global scale.
Dr. Burkhard Schwenker
Dr. Burkhard Schwenker
For all the advances with respect to the once lofty Lisbon Agenda goals, Schwenker also called on EU politicians to honor their commitments toward completing the internal market and tackling the make-or-break issues in terms of Europe's global performance.

Referencing topics raised earlier in the day, at a high-level panel discussion on the effects of recent effect of the global financial shake-up on German-American relations, Schwenker said that Europe could not decouple oneself from world wide developments. He argued in favor of a close partnership, pointing to the creation of 14 million jobs on either side of the Atlantic through investments on both sides and the 60% global GDP that the EU and US represented when taken together. But he acknowledged that the fascination for new markets – India, China – could not be curtailed. As a consequence, Europe should campaign with even greater commitment and one voice in favor of stronger bilateral relations.

Recognizing outstanding achievements

Presenting the four awards in two categories, the Editors-in-Chief of two of Germany's leading business publications and BEB Media Partners, Financial Times Deutschland and manager magazin, highlighted the individual achievements of the winning companies.

In the 'Growth' category, a large and SME winner was selected by the expert jury, based on publicly available company data and a close examination of existing strategies. Roland Berger analysts closely evaluated thousands of company profiles before presenting a short list of the top performers the to selection panel. Automotive supplier Benteler AG, won in the large company (over EUR 1 billion in annual revenues) category, while trucking and logistics expert SchmitzCargobull received the SME prize.

Looking to select a single winner in the Cross-border M&A category, jury member deliberated for hours, only to produce an even draw. Global Chemical giant BASF accepted one of the two awards for its successful acquisition and integration of US manufacturer Engelhard, while Fresenius was rewarded for the EUR 3 billion deal to purchase the Renal Care Group and its ability to integrating Latin American medical companies.
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Individual transatlantic leadership

The CEO of one of Europe's largest energy providers, Jürgen Grossmann of RWE, presented Thomas Enders with his special award for his long-standing commitment to furthering constructive transatlantic dialogue, whether through is role as the head of the Atlantik Brücke, or through his active participation in the Trans-Atlantic Business Dialogue (TABD). Dr. Enders' entire biography had been interwoven with close ties to the United States, beginning as early as his years in graduate school at UCLA, Grossmann said. Throughout his career that saw him become one of the most successful managers of a Franco-German venture, EADS, Enders had remained focused on strategic developments on the US market, forging business relations with major US players in the defense and aerospace industries.

Roland Berger, the founder and Chairman of the consulting company, which bears his name, closed out the evening by sharing his personal views with 300 business leaders in the audience. Europe was well placed to harness the strengths of a globalized market, he said. He underlined that bureaucratic hurdles had to be overcome to ensure a seamless working of the internal market and demonstrate the added-value of the Union to its citizens.

Who needs America?

The awards ceremony was preceded by a panel discussion provocatively entitled "Who needs America?" moderated by the publisher of Germany's leading weekly DIE ZEIT, Josef Joffe. Panelist included Thomas Enders, C. Boyden Gray, Special Envoy for European Affairs, U.S. Mission to the EU, German politician Friedrich Merz, Roland Berger Partner, Detlev von Busch and Dr. Nils Ole Oermann, Pastor and Advisor to the Conference on Islam in Germany. Participants agreed that a constructive partnership required open discussions and active collaboration wherever possible and that "decoupling" was neither a viable of feasible option, given the integrated nature of the global economy. Much could be learned, the speakers agreed, from the US higher education system and its academic and financial incentives to attract and retain the most highly-qualified global talent.

While remnants of the Berlin Wall on display pleaded for a return of American troops ("We want our Amis back!") for the economic benefits and security they once provided, BEB 2008 vividly proved that a more modern-day version of constructive transatlantic dialogue in business and politics is already underway.
And the winners are….

Growth
  • Benteler AG won first prize in the "Growth" category for companies with sales of more than EUR 5 billion for the second time. Its core business segments are automotive systems, steel/tubes and distribution. In this fiercely competitive market, Benteler AG managed to raise its return on sales from 2.4% to 3.4% between 2002 and 2006. At the same time, its headcount increased by 4,600 to 22,000. "Benteler pursued a targeted strategy of organic growth based on rigorous research and development," the jury explained.
  • The "Growth" award for medium-sized companies went to Schmitz Cargobull. "The European market leader in semitrailers, platform trailers, tippers and swap bodies made it to the top because its returns have been stable for years and its focus on customers is outstanding," the jury said. CEO Bernd Hoffmann accepted the prize on behalf of the company.
Cross-border M&A
  • The global healthcare group Fresenius SE won the "Cross-border mergers and acquisitions" award. The jury was especially impressed by how the company manage to create value from its acquisitions: "Fresenius has clearly perfected the art of integrating new acquisitions. The capital markets were really enthusiastic about Fresenius Medical Care's takeover of Renal Care Group in the US," the jury said. "What's more, Fresenius Kabi created global synergies with international acquisitions such as Laboratorio Sanderson in Chile, Ribbon Srl in Italy and Filaxis in Argentina. It also integrated Nestlé's food business in France and Spain, and the colloid business of Kyorin Pharmaceuticals in Japan."
  • BASF, one of the world's leading chemical companies, was recognized for its successful acquisition of Engelhard, the American catalyst specialist. The jury felt that "With the expansion of its catalyst business, BASF has become much more competitive. This acquisition allows the company to access unique global research in catalysts. Now BASF can offer its customers in industrialized and emerging markets new innovative products and system solutions to comply with emissions standards that are becoming stricter."
Special Award Transatlantic Relations
  • The special prize in Germany for efforts in the service of transatlantic economic relations goes to the CEO of Airbus, Dr. Thomas Enders. Juror Schwenker explains, "What impressed us was Dr. Enders' continuous professional and personal commitment to Germany's relations with the US, our most important non-EU trading partner." The special prize is awarded in cooperation with the news broadcaster n-tv and Atlantik-Brücke e.V.
Feb 14, 2008

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