Executive Board Evaluation of Overall Risk

The Executive Board evaluates the overall risk situation on the basis of information from the risk management system. The system compiles all risks identified by our divisions, corporate departments and regional entities. It is regularly reviewed by the Executive Board and discussed in Audit Committee meetings. If we look at all of the risks over the forecast period in terms of their probability of materializing and their potential impact, were they to materialize, on the Group’s earnings, net assets and financial position, then we can see that both the number of risks and their potential impact have increased overall compared with a year earlier.

As of the publication date of this report, the Executive Board does not see any individual or aggregate risk that could seriously endanger WACKER’s future. The risks posed, especially by geopolitical and trade conflicts and by persistently high energy prices, are quite considerable. But, thanks to our extensive product portfolio, with its high proportion of specialty products, and to our broad regional footing, we see good opportunities to expand our leading market positions and achieve further growth. We remain confident that WACKER is strategically and financially so well placed that we can take advantage of any opportunities that arise.