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Investor Relations |
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Efore has specified the most significant risks and their management from the point of view of the entire Group. According to the Board of Directors' estimate, the most significant risks are associated with the dependence on the key customers, delays in development projects of new products and materials management. Short term risks are described in Interim Reports. Dependence on certain main customers Challenges to the demand for Efore products have been caused by dependence on certain main customers whose share of Efore's net sales is over 70 %. Efore aims to widen its customer base and decrease its dependence on certain customers according to the strategy by developing new accounts, strengthening the sales organization and focusing on new customer acquisition. Risks associated to Product Development projects If Efore's Product Development is delayed in its projects for new products or that products are unable to meet customer requirements in terms of a product’s performance or quality may have an impact on profitability of the company. The aim of the risk management is to prevent risks by developing Product Development processes, customer intimacy, improving the skills of personnel and recruiting competent persons. Material management Material and component costs are the largest items in the company's cost structure and therefore efficient order and supply chain management is important for the profitability of the company's business operations. Efore manages risks associated to material costs and availability by using sophisticated information systems, supply chain management and through appropriate agreements with component suppliers and customers. |