Nabaltec_E_GB2016

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 REPORT ON OUTLOOK, OPPORTUNITIES AND RISKS 47 ing pronounced customer proximity. In fact, technological developments offer numerous opportunities for Nabaltec to generate a competitive edge in product quality, by occupying new markets through fast-paced product adjustments and by creating process, processing and quality advantages together with our customers in order to set the stage for economic success. LEGAL FRAMEWORK Changes within the legal framework could lead to risks for Nabaltec. Currently, regulatory changes are creating additional market opportunities – and this trend is not expected to re- verse in the medium and long term. Eco-friendly products such as Nabaltec’s are being pushed forward on a global scale in an effort to eliminate materials which are harmful to the environ- ment from the cycle. Regulatory changes currently provide additional market opportunities Effective risk management is decisive to secure the long-term future of the company As an intensive electricity user in international competition, Nabaltec will benefit from the renewable energy surcharge in 2017 as well. On the other hand, the provisions of the “2017 Renewable Energy Act” will, in the medium term, lead to an increase in renewable energy expenses in the mid six-figures range. RISK MANAGEMENT SYSTEM For Nabaltec Group, the relevance of risk management is derived from its business activities and its worldwide operations, involving an international competitive and regulatory environ- ment, as well as the general complexity of the global economy. Nabaltec Group’s success depends to a considerable extent on identifying associated risks and opportunities as well as dealing with them consciously and bringing risks under control. Effective risk management is a core element for securing the company long term, for its economic success in international markets and for its successful, sustainable future development. Nabaltec is constantly working to develop the risk management within the company. The con- tinuous optimization of risk prevention tools in all areas enables the early identification and elimination of business risks. Integral elements include risk management as an ongoing pro- cess, risk controlling, extensive communication and documentation processes, as well as an internal monitoring system. All discernible internal and external risks are identified, document- ed, assessed and included in a risk matrix as efficiently as possible. This risk matrix represents the basic framework for the assessment of potential risks and for the identification of key risks. The starting point of the actual risk management processes at Nabaltec is the identification and evaluation of various types of risks and risk profiles that are monitored and managed by the controlling department. Reports on business risks as well as continuous status reports are prepared for the Management Board and discussed by the management circle. An important component is also the comprehensive operational budget including targets, regularly supple- mented with forecasts. Nabaltec has implemented a strategic planning system in order to take advantage of medium and long term opportunities and to identify risks. All relevant units are involved in the strategy development process. Risks arising from competition, anti-trust, tax and environmental laws and regulations are mitigated by Nabaltec in advance by engaging experts. Quality assurance measures limit product and environmental risks. Such measures include e.g. certification of our activities in accordance with international standards, constant improvements to facilities and processes, the development of new and the improvement of existing products as well as participation in international professional committees. Annual Report 2016 | Nabaltec AG ||||

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