Investor Presentation
Risk factors (cont'd)
Risks relating to IT infrastructure
The Group depends on information technology to manage critical business processes, such as accounting and enterprise resource planning, including administrative functions and the protection of personal data. The Group uses IT
systems for internal purposes and externally in relation to its suppliers and customers. Extensive downtime of network servers, attacks by IT-viruses or other disruptions or failure of information technology systems are possible and
could have an adverse effect on the Group's operations. It should further be noted that the main customers of the Group, i.e. insurance companies, generally have strict requirements regarding privacy and data protection. A failure or
disruption of the information technology systems could cause transaction errors and loss of customers as well as sales, and could have an adverse effect on the Group's business, earnings or financial position.
Medium level risks
Global economic and market conditions
A lengthy economic downturn or a sustained loss of consumer confidence in the markets in which the Group operates could trigger a decrease in demand for the Group's services and a decline in sales for the industry as well as for the
Group. This could have an adverse effect on the Group's business, earnings or financial position.
Risks relating to the business model
The Group is active in the property damage restoration business, e.g. work related to water damage restoration, fire damage restoration and document restoration. The business is thus to a large extent dependent on circumstances
beyond the Group's control, including, inter alia, water leaks, fires, outdoor temperature, natural disasters and the weather. These circumstances vary within each country and region where the Group conducts its services. Further, part
of the Group's cost structure is fixed, the proceeds of the operations are to some extent unpredictable and may vary from time to time as a result of this dependency. Adverse developments outside the Group's control relating to
weather and climate events affecting the demand for the Group's property damage restoration services may lead to a loss of sales, and if the Group cannot maintain a flexible cost structure to address such losses, this could result in an
adverse effect on the Group's earnings and financial position.
Negative publicity
The Group relies on its brand and reputation to maintain and attract new customers, employees and other stakeholders. If the brand and reputation of the Group is damaged, the Group's customers, employees and other stakeholders
could lose confidence in the Group. For instance, any negative publicity or announcement relating to the Group may, whether or not it is justifiable, deteriorate the brand value and reputation of the Group and consequently lead to, e.g.,
a loss of current and future customers and sales, which would have an adverse effect on the Group's business and earnings.
Risks relating to competitive landscape
The Group has a large number of competitors across different product and service categories, segments and geographic markets, some of whom may have greater financial and operational resources than the Group. The Group's
future possibilities to compete are, among other things, dependent upon the Group's ability to anticipate future market changes and trends, to rapidly react on existing and future market needs, and to attract new customers and retain
current customers, which may result in increased costs for redevelopment of its services, require price reductions and/or changes to the Group's business model. If the Group fails to meet the competition from new and existing
companies, this could have an adverse effect on the Group's business, earnings or financial position.
Low level risks
Risks relating to sourcing equipment
The Group is dependent upon its ability to source new equipment, and to maintain the equipment owned by the Group, that are required to carry out the Group's operations. If such sourcing should not be successful, it could damage the
Group's reputation and its relationships with its customers, resulting in an adverse effect on the Group's business, earnings or financial position.
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