Interview with Thomas Dittrich - CFO Galderma Group AG

Deloitte: Looking back over the past 10 years, how has the finance function evolved? Have there been any surprises, or any changes that occurred faster or slower than expected?​

Thomas Dittrich: The responsibilities of the finance function have become much broader and more significant, making the role both more challenging and more engaging. The finance function is increasingly becoming the “intelligent glue” that ensures the exchange of information and sound, swift decision-making, even across organisational boundaries. Three areas are central to this:​

1. Technology and AI: The adoption of new technologies, particularly in automation and data analytics, has significantly enhanced the efficiency of finance departments. Cloud-based solutions and AI-powered, integrated tools are set to revolutionise how financial data is processed and analysed. This transformation is happening faster than many anticipate.​
2. Focus on sustainability: Pressure on companies to adopt sustainable practices has intensified. This has led to a stronger emphasis on ESG (Environmental, Social and Governance) factors in financial reporting and planning. Although this trend appears to be slowing somewhat at present, overall it has developed more rapidly than many analysts initially predicted.​
3. Agility and adaptability: Not only the COVID-19 pandemic highlighted the need for flexible financial planning. Companies had to respond swiftly to adjust their strategies, which has increased the importance of scenario analysis, stress testing and risk-based approaches in financial planning.​

Deloitte: How can the finance function help address this year’s challenges relating to the global environment, including tariffs, trade and currency volatility, and increased uncertainty?​

Thomas Dittrich: The finance function plays a crucial role in managing the challenges arising from the global environment. Proactively identifying and analysing risks linked to tariffs, trade, and currency volatility is essential. Rigorous monitoring and optimisation of cash flow is particularly important. Finance teams conduct scenario analyses to understand potential impacts on liquidity and profitability and to develop appropriate action points. Flexible supply chains offering “natural hedges” are increasingly considered to mitigate currency risks. This requires ongoing, fast data analysis to monitor market trends, currency movements, and trade conditions, which are also reflected in the strategic planning of various economic and geopolitical scenarios. In this way, the finance department can support management in making informed decisions and swiftly adapting the business to changes in the global environment.​

​Deloitte: Switzerland is once again in a zero-interest-rate environment. What impact do you think this will have?​

Thomas Dittrich: Zero or negative interest rates are always the central bank’s “last resort”; more elegant are timely foreign exchange market interventions. The latter are now certainly necessary to weaken the external value of the Swiss franc and stimulate the domestic economy through lower financing costs and mortgage interest rates. This is particularly important given the precarious tariff situation with the United States, which is hitting many sectors hard. Caution is required regarding potential distortions affecting savers, pension funds, the property market, and banks’ margin business.​

Deloitte: How do you see the long-term development of the international role of the US dollar?​

Thomas Dittrich: Still weaker against the Swiss franc, but: “Those declared dead live longer” – there is no alternative to the US dollar as a reserve currency in the medium to long term. This is particularly well demonstrated by stablecoins, cryptocurrencies that guarantee conversion to the US dollar at a fixed exchange rate. However, to the extent that the EU increasingly strives to stand on its own feet due to external pressures, the euro will also benefit as a reserve currency.