BÉT Prémium kategória

No negative effects on AutoWallis’s business and strategy by the Russian-Ukrainian war

2022-03-03

The Russian-Ukrainian war and the economic sanctions imposed on Russia have no direct effects on AutoWallis Group’s business. The Group is present in 14 countries in the Central and Eastern European region but has no interests in Russia or Ukraine; moreover, it represents 16 brands, so its activities are diversified and crisis-proof. AutoWallis maintains the updated strategy and planned figures published last autumn and considers the Company’s share price to be undervalued given the analyst consensus. However, management is monitoring the situation in Ukraine with concern and hopes for a reassuring conclusion as soon as possible.

AutoWallis does not expect the Russian-Ukrainian war or the economic sanctions imposed on Russia to have any direct negative impacts because:

• the AutoWallis Group has no direct operations in Ukraine or Russia and therefore has no direct business exposure,

• the Group does not have any assets (real estate, tangible assets, stocks, liquid assets) in the countries involved in the war, meaning AutoWallis is not affected by the associated restrictions or expected losses,

• the Group’s key leaders are not affected by the conflict and the situation does not impact its management structure (e.g. travel or work restrictions, military service, etc.),

• the Group has no important partners (e.g. Russian manufacturers or banks) affected by the sanctions put in place by the EU or the USA, and so does not expect the sanctions to have any direct business impact.

The developing crisis may obviously have indirect economic effects that involve the business sector and the general population. Although these effects can as yet not be assessed, AutoWallis considers it possible to maintain the updated growth strategy announced last year for the period ending with 2025. AutoWallis Plc.’s capitalization is excellent, having raised a total of HUF 21 billion in the last two years alone (HUF 9.6 billion in bonds and HUF 11.4 billion in shares), so the Company continues to work on planned business developments and acquisitions.

AutoWallis’s managers and employees are monitoring the situation in Ukraine with concern, hoping for a reassuring conclusion as soon as possible and providing assistance to refugees from the war.