To minimize the Group’s risk exposure, additional measures primarily of a corporate nature were taken in the business year ended based on insights gained from past economic and financial crises and their effects on the voestalpine Group and, especially, based on insights gained from the current COVID-19 crisis; these measures will be consistently implemented in the years to come as well. In particular, these measures are targeted at
- Minimizing the negative effects that even a recessionary economic trend would have on the company by means of relevant planning precautions (“scenario planning”);
- Maintaining high product quality along with concurrent continual efficiency gains and ongoing cost optimization;
- Having sufficient financial liquidity available even in the event of constricted financial markets; and
- Securing in-house expertise even more efficiently than before with a view to continuing the long-term expansion of the Group’s quality and technology leadership.
Given the difficulties in the economic environment that continue unabated, any fallout from global trade disputes such as (punitive) tariffs is monitored on a continual basis. Further developments in the pandemic and the actions that individual countries take to fight it and stimulate their economies will continue to have a massive impact on economic developments in different parts of the world.
Specific measures to hedge the risks previously identified within the voestalpine Group have been developed and implemented. These steps are aimed at reducing potential losses and/or minimizing the likelihood of losses occurring. It must be stated that, from today’s perspective, the operating risks facing the voestalpine Group over and above global crises and their consequences are limited and manageable and do not threaten the company’s existence as a going concern. As regards the COVID-19 crisis and its associated global ramifications, the voestalpine Group will continue to do everything in its power to deal with the situation—which is very difficult for each and every individual and for the company on the whole—to the best of its ability.