OUTLOOK The confluence of slowing global economic growth and the ongoing Russia-Ukraine conflict will continue to dampen confidence. In response we will continue to prioritise cost management while remaining attuned to advantageous opportunities to expand our business presence. HOW WE RESPONDED • Maintaining our focus on achieving leaner operations and leveraging economies of scale, thereby reducing our cost base wherever possible • Exploring further opportunities to diversify our business interests in order to minimise the impact of any one sector on Group profitability POTENTIAL IMPACT Risks: • A stagnating global economy would affect demand and revenue generation across our business divisions • Dampened market confidence would impede our ability to establish partnerships and consequently to enter new markets • A weakened economic situation may force us to resize our employee base, leading to redundancies and the ceasing of supplier relationships • High raw material costs and supply chain bottlenecks have raised our costs related to production and distribution of goods Opportunities: • The current trend of high crude oil prices has increased the revenue and profitability of Ping, and this trend looks likely to continue for the foreseeable future • The uncertain macroeconomic environment may offer us opportunities to complete further acquisitions at a favourable cost The Russia-Ukraine conflict has cast a shadow on the global economic and political environment. The conflict has interrupted the supply of key raw materials and the price of energy5, creating a knock-on effect which can be seen in the increased cost of goods and persistently high inflation rates6. As a result, confidence in the global economy has dropped, in some quarters, to levels previously seen during the COVID-19 pandemic7. MACROECONOMIC AND GEOPOLITICAL UNCERTAINTY IMPACTING Capitals Strategic Thrusts Material Matters M2 M3 M10 M11 53 DNeX INTEGRATED REPORT 2022
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