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Borealis AG Public Offering of up to EUR 200000000 Senior Fixed ...

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1.1.6 The Issuer and the Gro<strong>up</strong> are subject <strong>to</strong> the risk <strong>of</strong> loss <strong>of</strong> key personnel<br />

As it is the case with most enterprises using advanced technology and R&D, a key fac<strong>to</strong>r in<br />

the successful economic development <strong>of</strong> <strong>Borealis</strong> Gro<strong>up</strong> is the technical know how as well as<br />

market knowledge <strong>of</strong> its skilled management and key personnel. The loss <strong>of</strong> key personnel <strong>of</strong><br />

the issuer and/or the Gro<strong>up</strong> could have a material adverse effect on the <strong>Borealis</strong> Gro<strong>up</strong>'s<br />

business, results <strong>of</strong> operations and financial condition. This negative influence could only be<br />

compensated if within appropriate time the Issuer could hire under equivalent conditions<br />

equally qualified key personnel.<br />

1.1.7 <strong>Borealis</strong> Gro<strong>up</strong> may be exposed <strong>to</strong> trade receivables credit risk<br />

<strong>Borealis</strong> Gro<strong>up</strong> is subject <strong>to</strong> trade receivables credit risk as the financial situation <strong>of</strong> its<br />

cus<strong>to</strong>mers might deteriorate and could prevent them from paying the amounts owed <strong>to</strong> the<br />

Issuer on the due date. This could materially negatively impact the financial situation <strong>of</strong><br />

<strong>Borealis</strong> Gro<strong>up</strong>.<br />

1.1.8 <strong>Borealis</strong> Gro<strong>up</strong> 's cus<strong>to</strong>mers' purchases <strong>of</strong> products and services could be adversely<br />

affected by a global economic downturn or a substantial slowdown in economic<br />

growth, which could lead <strong>to</strong> recessions in the Issuer's industry and could have a<br />

negative impact on the operating results and financial condition <strong>of</strong> <strong>Borealis</strong> Gro<strong>up</strong><br />

The economic and political environment (e.g. unemployment, inflation, inclination <strong>to</strong> invest,<br />

and economic growth) in the countries where <strong>Borealis</strong> Gro<strong>up</strong> is active or has operations as<br />

well as the development <strong>of</strong> the world economy have a fundamental influence on the demand<br />

for the services and products developed and <strong>of</strong>fered by <strong>Borealis</strong> Gro<strong>up</strong>.<br />

Although the world economy in the years 2010 and 2011 has improved again, the overall<br />

global economic outlook remains uncertain. The general economic conditions and economic<br />

prospects have been adversely affected in recent years mainly due <strong>to</strong> the concern that some<br />

Member States <strong>of</strong> the European Union and other countries, where the <strong>Borealis</strong> Gro<strong>up</strong> is active<br />

or has operations, can no longer afford debt servicing in terms <strong>of</strong> their debt. Several<br />

international efforts <strong>to</strong> resolve the debt crisis could not eliminate these concerns and the<br />

continuing uncertainty could affect the global markets negatively.<br />

If the economies in countries where <strong>Borealis</strong> Gro<strong>up</strong> is active resume the deterioration<br />

experienced in the past, or if growth remains at low levels, the level <strong>of</strong> demand by <strong>Borealis</strong><br />

Gro<strong>up</strong>'s cus<strong>to</strong>mers for its products and services may weaken. Economic downturns may lead<br />

<strong>to</strong> recessions in the Issuer's industry, either in individual markets or globally. This could, in<br />

turn, negatively impact the Issuer's revenue development, including in the future growth areas<br />

on which it plans <strong>to</strong> focus, and jeopardise the attainment <strong>of</strong> <strong>Borealis</strong> Gro<strong>up</strong>'s growth targets.<br />

1.1.9 <strong>Borealis</strong> Gro<strong>up</strong> may be subject <strong>to</strong> higher capital costs due <strong>to</strong> the capital requirements<br />

for banks<br />

Due <strong>to</strong> the rules <strong>of</strong> the Basel III Accord (International Convergence <strong>of</strong> Capital Measurement<br />

and Capital Standards by the Basel Committee on Banking S<strong>up</strong>ervision), banks will be<br />

required <strong>to</strong> moni<strong>to</strong>r their capital adequacy requirements more closely and <strong>to</strong> a great extent<br />

either raise additional own funds or limit their loan exposures, which in turn would result in<br />

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