Based on the insights gained from economic and financial crises in the past and their effects on the voestalpine Group and in particular from crises in the recent past (such as the Ukraine war, interest rate and inflation developments, COVID-19 pandemic) 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.
In a persistently difficult economic environment, any consequences of global (trade) conflicts and the effects of changes in geopolitical conditions are monitored on a continual basis.
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.
