Nabaltec_E_GB2016 - Report on outlook, opportunities and risks

T R O P E R T N E M E G A N A M D E T A D I L O S N O C FINANCIAL REPORT/REPORT ON SUBSEQUENT EVENTS/ REPORT ON OUTLOOK, OPPORTUNITIES AND RISKS 43 of fine hydroxide, Nabaltec consistently seeks to keep them from being released into the environ- ment and instead to ensure that they are reused in a closed-loop production cycle. In addition, new technologies are used in order to substantially reduce the need for washing water due to increased production and higher quality requirements. Capital Market Since its initial public offering in 2006, Nabaltec has had intact access to the capital market. This is proven by the bond offering in 2010 as well as the loans against borrower’s note in 2013 and 2015. This market access, maintained by transparent and reliable communications at all times, secures a balanced and largely independent means of financing for Nabaltec, which is also perceived positively in the sales markets. 3. REPORT ON SUBSEQUENT EVENTS Events of particular importance for the assessment of Nabaltec Group’s financial, earnings and liquidity position which took place after the reporting date, 31 December 2016, can be found in the supplemental report in the Consolidated Notes. 4. REPORT ON OUTLOOK, OPPORTUNITIES AND RISKS 4.1 OUTLOOK OVERALL STATEMENT ON THE PROSPECTIVE DEVELOPMENT Nabaltec also foresees intact sales markets and stable demand for its products in 2017, if the market environment does not change fundamentally. The company has taken a leading international position within its markets. Based on the further development of its market position in 2016 and the reputation it has built up over many years, Nabaltec sees good future prospects for its key products. ECONOMIC AND INDUSTRY DEVELOPMENT In its economic outlook, the Kiel Institute for the World Economy (IfW) calls for the global economy to expand over the next two years. From global GDP growth of 3.1% in 2016, IfW expects growth to climb to 3.5% in 2017 and 3.6% in 2018. Production in the advanced econo- mies is expected to increase in the view of the continuation of expansive monetary policies, the growth in fiscal stimulus measures and slightly stronger demand growth in developing and emerging markets, resulting in an acceleration in economic activity. The forecasts of the Inter- national Monetary Fund (IMF) call for GDP growth in the advanced economies of 1.9% in 2017 and 2.0% in 2018, up from 1.6% in 2016. The expansion in emerging markets will accelerate slightly, particularly due to the recent rebound in commodities prices. Nabaltec expects intact sales markets and stable demand in 2017 IfW expects a modest expansion in the Euro zone, with a growth rate of 1.7% in each of the next two years. Unresolved structural problems in parts of the Euro zone continue to weigh down the outlook, and the upcoming 2017 parliamentary elections in four of the Euro zone’s five largest member states (Germany, France, Italy and the Netherlands) contain uncertainty for the Euro zone’s orientation in terms of economic policy. For the Euro zone, IfW expects an increase in economic performance of 1.7% in 2017 Annual Report 2016 | Nabaltec AG ||||

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