TRESU Q3 2023 Financial Report slide image

TRESU Q3 2023 Financial Report

TRESU Risk factors (continued) 4.12. The Group's insurance policies may be insufficient to cover losses The Group has a customary insurance that includes property insurance, liability insurance and directors' and officers' liability insurance. Although the Group maintains insurance to the extent it considers to be adequate based on professional insurance advice, there can be circumstances in which the insurance would not cover, partially or fully, the consequences of a loss event. Further, there may be extended periods of uncertainty as to payment, or delays in receiving payment, for a loss event under the Group's insurance policies and such delay in payment could compound such losses and materially affect the Group's business, financial condition and results of operations. In addition, the Group could face claims on other liability events or incidents for which it either cannot obtain insurance or has elected not to obtain insurance (whether on account of premium costs, significant risk retention or for other reasons). In the future, the Group may not be able to continue or obtain insurance coverage at current levels, or at all, and premiums may increase significantly on the coverage that is maintained. The occurrence of any of the above could have a material adverse effect on the Group's business, financial condition and results of operations and could result in a loss for each Bondholder of part or all of each Bondholder's investment in the Bonds. 4.13. Risk of failure to attract and retain key personnel The majority of the Group's management team has been replaced since 2021. If any member of the current executive management or management team were to terminate their services or employment with the Group, it may have to incur significant costs in attracting, hiring, training and retaining replacements as competition in the industry for suitably qualified personnel managers is significant. The loss of other executive officers or key employees, the inability to recruit sufficient, qualified personnel, or the inability to replace departing employees in a timely manner may have a material adverse effect on the business, results of operations, financial condition and/or prospects of the Group. In addition, the Group depends on its ability to attract, hire, train and retain qualified employees, which is challenging due to the shortage of labour in the current market. A higher turnover rate among employees would increase recruiting and training costs and could require the Group to offer higher wages, which may have a material adverse effect on the business, results of operations, financial condition and/or prospects of the Group and could result in a loss for each Bondholder of part or all of each Bondholder's investment in the Bonds. 4.14. Risk of fraud or other misconduct by the employees, customers or other third parties The Group is exposed to potential fraud or other misconduct committed by employees, customers or other third parties, which could subject the Group to financial losses, third-party claims, regulatory investigations and/or reputational damages. Despite the internal control measures in place, the Group cannot assure that internal control policies and procedures are sufficient to prevent, or that the Group could properly manage the conduct of its employees or customers, or that the Group can otherwise fully detect or deter, all incidents of fraud, legal, tax or other regulatory non-compliance, violations of relevant laws and regulations and other misconduct. Any such conduct committed by employees, customers or other third parties could have a material adverse effect on the business, results of operations, financial condition and/or prospects of the Group and could result in a loss for each Bondholder of part or all of each Bondholder's investment in the Bonds. The Group uses agents to support part of its sales, especially within system sales to end users in some areas of the world. Although the agents generally do not have the right to sign on behalf of the Group, there is still a potential risk that fraud and other misconduct by such agents could adversely affect the Group's business, results of operations, financial condition and/or prospects. The Group's due diligence in respect on agents is limited. 554 54
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