Our strong investment activities in new production facilities (both in the past and in the future) leave us exposed to the risk of bad investments. We reduce this risk by contractually fixing future production quantities (e.g. for polysilicon) with customers and by only approving an investment in stages. To safeguard the utilization rates of manufacturing investments, we form joint ventures, such as our silicon-wafer operation with Samsung. In some cases, we have applied for state funding and need European Union approval. Although the review process has yet to be completed, we expect a positive decision. Funding is generally tied to the fulfillment of specific conditions within a specified timeframe.
Together with strategic partners, we have established joint ventures to tap into new markets, particularly in Asia. However, financing stipulations, especially in China, could change, requiring us to raise equity. Our plans take this risk into consideration. Thanks to sales-volume agreements with our strategic partners, we have ensured the utilization of most capacities at our joint ventures. Additionally, claims can arise from guarantees and other securities in our name.