Financial impact of risks

Vebego's risk profile is determined, on the one hand, by the geographical spread of its services across core countries and, on the other hand, by the diversity of its services. Because of this double spread, there is a resilient risk appetite. Thanks to the business model, market focus, processes and continuous KPI monitoring, the individual companies are able to anticipate market growth or decline very quickly. Risks and opportunities are assessed and managed both centrally and locally.

The risk appetite is derived from the strategy and objectives and can be categorised as follows:

Strategic: Vebego takes calculated risks to grow organically. With the commitment, drive and innovative capacity of its employees, Vebego is able to turn risks into opportunities. Operational: Years of experience in the companies enable us to take well-considered risks. We implement proven concepts and working methods both centrally and locally. Financial: Our financial policy is prudent, with a focus on organic growth and financing that is independent of credit institutions. We minimise liquidity and credit risks (see also below). Financial reporting: There is limited estimation uncertainty in the financial accounts. Compliance: Vebego aims to be 100% compliant with legislation and regulations and with its own internal procedures and rules of conduct. We have a Risk & Compliance department at Group level to monitor compliance, which meets regularly with the Risk & Audit Committee of the Supervisory Board. Compliance with agreements with customers and suppliers and being a good employer are high priorities for Vebego.

Currency risk

Vebego operates in stable economies, primarily within the EU and Switzerland. The currency risk is minimal, as Vebego companies invoice customers in local currency and also pay employees and suppliers in the same currency.

Price, cash flow, liquidity or credit risk

Liquidity risk is the risk that Vebego is unable to meet its financial obligations. Vebego takes the approach that it always has sufficient liquid assets available to meet such obligations when they are due, both under normal circumstances and under stress conditions. This risk is controlled by maintaining sufficient cash and credit lines.

Vebego’s credit risk relates to the possibility that customers and other counterparties may not be able to meet their obligations to Vebego. The credit management departments of the Vebego companies monitor this credit risk on a weekly basis. Vebego's credit risk is limited, as it is spread across a large number of customers in various sectors and countries.

Resilience

The impact of high inflation and the ongoing movement in the labour market, particularly the tightness, are the main factors affecting our strategic and operational risks. The impact on Vebego depends, on the one hand, on isolated factors and, on the other hand, on interrelated and mutually reinforcing factors. For the time being, we see no reason to adjust our internal risk management system in 2025. Together with the Audit & Risk Committee, which comprises two members of the Supervisory Board, our Chief Value Officer and our Director Risk & Compliance, we work on identifying and mitigating Group risks. It is impractical to determine the consequences of risks that may occur in the future but which are not, or insufficiently, covered by our current risk management.

Vebego has shown in the past that it is resilient in this respect and able to adapt the organisation to rapidly changing circumstances where necessary. The companies are able to anticipate changes quickly. Vebego is and remains a strong and solid family company, conservatively financed and able to withstand the odd bump in the road.

Our external audit of the financial statements is carried out by Deloitte.