GLOBAL GEOPOLITICAL STABILITY Given the multi-national nature of our operations, we are highly susceptible to global macroeconomic conditions and geopolitical factors. During the past year, this included the ongoing Russia-Ukraine conflict, which has in turn heightened raw material costs and impacted inflation rates around the world. There is also the risk of the emergence of new variants of COV ID- 19 , wh i ch wou l d hampe r international trade and further weaken the global economy. DESCRIPTION IMPACTING Strategic Thrusts Capitals • Global economic uncertainty may result in weakened consumer spending and overall business confidence • Rising material costs and inflation may lead to reduced margins, especially in our semiconductor business, SilTerra • Exchange rate fluctuations may result in diminished profitability due to forex losses • Supply chain bottlenecks may lead to increased costs and result in delayed shipments POTENTIAL IMPACT • Focusing on increasing productivity and efficiency while optimising operating costs wherever possible • Increasing our focus on currency hedging to mitigate against exchange rate fluctuations • Exploring further opportunities to diversify our business interests in order to minimise the impact of any one sector on Group profitability MITIGATION STRATEGIES RISK MOVEMENT Board of Directors Audit Committee Risk, Governance and Sustainability Committee Management Committee Risk and Business Process Management Department Risk Owners/ Co-owners Staff Embedding risk management policy & strategy Monitoring policy and implementation Risk reporting & monitoring Ensure accountability Identification, assessment, implementation & monitoring risk action plan Board of Directors of Subsidiaries Internal Audit External Audit 57 DNeX INTEGRATED REPORT 2022
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