Risk management

Economic risks
The NOVOMATIC Group is exposed to risks arising from the macroeconomic shock emanating on a long-term basis from the world economic crisis of 2009. This shock could take the form of drops in economic growth, rises in unemployment and a decline in disposable income.

Legislative risks
Legislative risks can ensue from unexpected and quicklyenacted alterations in laws, guidelines, regulations and from legal verdicts. With these leading to restrictions of activities in markets, such alterations are especially possible in the areas of the granting of licenses to operate gaming equipment and/or of the producing and distributing of gaming equipment and the approving of products. Risks also arise from the eventual non-granting or extending of concessions and/or licenses to operate games of chance. Not capable of being excluded are especially any claims placed by third parties in the area of intellectual property, or by gamers, with this also applying to product liability and/or to customers requirements in the areas of warranties and/or guarantees. Among other things, a strengthening in several jurisdictions of laws protecting non-smokers would also have a negative influence upon business.

Alteration of customer behavior
The diversity of leisure-time and entertainment offerings causes customer behavior to continually change. This necessitates the ongoing alteration and creation of products and innovations, so as to maintain positions on target markets. Not to be excluded is the failure to recognize customer needs and wishes, or to do such in a timely way.

Technological risks
The NOVOMATIC Group operates in a high-tech market. It features short cycles of innovation and thus the development and exploiting of new technologies. Not to be excluded is the failure to discover and exploit innovative technologies and developments, or to do such in a timely way. The NOVOMATIC Group is also exposed to the risks of imitation, software and product piracy, and of the illegal intrusion by third parties into gaming systems and software.

Operative risks
The risks of an interruption of corporate operations and of a damaging of assets are covered by insurance policies.