Based on the insights gained from economic and financial crises in the past and their effects on the voestalpine Group—especially from the COVID-19 pandemic and the Ukraine war as well as the development of inflation and interest rates—additional steps primarily of a corporate nature have been and are being taken to mitigate the Group’s risk exposure. These measures are consistently applied and followed up on in order to achieve the objectives below, in particular:
- Minimize the negative effects that even a recessionary economic trend would have on the company through relevant scenario planning;
- Maintain high product quality along with concurrent continual efficiency gains and ongoing cost optimization;
- Ensure the security of supply chains as far as possible;
- Counteract any price volatilities—especially in connection with energy and raw materials—by means of suitable tools and measures and also pass them on to customers;
- Have sufficient financial liquidity available even in the event of constricted financial markets;
- Secure 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) conflicts is monitored on a continual basis. Further developments in the Ukraine war and the actions taken by individual countries to fight it, as well as activities aimed at stimulating the economic environment, will continue to have a massive impact on economic developments in different regions 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 that they do not threaten the company’s existence as a going concern.