Strategic risk

Based on our objective of broadening our customer and product base, our new strategy focuses not only on continued globalisation but also on the electrification of our existing product range. Under our E-DEUTZ strategy, we will add electric and hybrid drive systems to the existing technology portfolio. This strategy presents the DEUTZ Group with numerous opportunities but is, of course, also associated with risks. Target markets might not grow as anticipated, while new product developments may not be as well received by customers as predicted or may not be able to compete with rival products.

We attempt to mitigate these risks by precisely analysing trends in our markets and by taking into account external market research. In September 2017, we acquired the electric drive specialist Torqeedo in order to accelerate the implementation of the E-DEUTZ strategy. We also enter into close alliances with our major customers in the target markets. Finally, we closely monitor our strategic projects so that we are able to respond immediately to changes.

In view of the measures in place, we categorise the strategic risks with regard to the attainment of our financial targets as ‘low’ in 2018 and as ‘moderate’ in the medium term.