Risks

The R+D+I area is exposed to a certain level of risk. This is related to insufficient work related to research and development being performed at JSW Group, among other things. This can result in a technological lag versus the competitors, leading to a decline in the Group's efficiency and productivity in comparison with its competitors. R+D work carries a material risk of failure or inability to reach project targets. Research and development activities are also exposed to risk associated with the availability of the right tools, know-how, skills and experience in relevant areas.

Implementing innovative solutions gives rise to uncertainty with regard to the scale of the effects and benefits that the Group might obtain. It should be noted that insufficient funding for the Group's development activities may have a tangible effect on its financial results.

The following decision-making and support units for R+D+I have been appointed to enhance control and transparency in R+D+I processes (including development projects): JSW’s Strategic Innovative Projects Evaluation Committee, along with subsidiary JSW Innowacje’s Innovative Projects Evaluation Committee and Preliminary Project Evaluation Committee, as well as the Scientific Council and R+D+I Coordinators at the Group's business units, who are in charge of identifying R+D+I projects, supporting project implementation and coordinating inventions and local projects. Further, strict oversight of key R+D+I projects is exercised by dedicated Steering Committees and Organisational Cells within JSW's Development Division.