Economic risks

Based on the insights gained from past economic and financial crises and their impact on the voestalpine Group, and particularly from recent crises (such as the Ukraine war, interest rate and inflation developments, and the COVID-19 pandemic), additional steps, primarily of a corporate nature, have been put in place over recent years to minimize risk. These measures were consistently implemented over the previous financial year and will continue to be implemented in the coming years. They specifically aim to

• minimize the negative effects that a recessionary economic trend would have on the company through appropriate scenario planning,
• maintain high product quality while continuously improving gains in efficiency and cost optimization,
• ensure supply security as effectively as possible and to avoid or mitigate any potential bottlenecks, also leveraging the Group’s international presence,
• counteract any price volatilities, especially in connection with energy and raw materials, by means of suitable tools and measures and, where appropriate, to pass them on to customers,
• maintain sufficient financial liquidity even in tight financial markets,
• and safeguard in-house expertise more efficiently than before to support the long-term expansion of the Group’s quality and technology leadership.

Specific risk mitigation measures for risks previously identified within the voestalpine Group have been developed and implemented or are currently being 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 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. No risks threatening the company’s continued existence have been identified.