Principal Risks and Uncertainties

The risks outlined below are those that the Board considers to be material to the Group. The Board routinely monitors risks that could materially adversely affect the ability of the Group to achieve its strategic goals and to maintain financial stability, assisted by the senior management team.

	Risk	How we manage the risk	Risk change
Political and economic	There is a risk of harm to the business from political unrest or disruption, particularly in emerging markets, and from a deterioration of economic conditions.	The Group’s operations are dispersed over a number of locations so that should a material adverse political or economic event arise in one location, the Group can continue with its operations elsewhere, thereby helping to mitigate the impact on its overall business.	↓ Low
Legal and compliance	There is a risk that legal and/or regulatory requirements are not met, leading to the loss of licence to operate, reputational damage or financial loss.	The Group retains experienced high calibre legal advisers for the Company and the Group’s divisions who provide ongoing advice and updates on relevant legal compliance requirements. The Group monitors the regulations relevant to its activities and, when needed, makes the necessary adjustments to maintain compliance.	↑ Mild
Business continuity	There are risks to business continuity from specific events, such as natural disasters and pandemics.	The Group retains experienced high calibre legal advisers for the Company and the Group’s divisions who provide ongoing advice and updates on relevant legal compliance requirements. The Group monitors the regulations relevant to its activities and, when needed, makes the necessary adjustments to maintain compliance.	- Mild
Supply chain	A disruption in the supply of key raw materials or services to a manufacturing site could affect the Group’s ability to make and deliver products to customers, leading to interruption in supply, lost revenue and damage to its reputation as a reliable supply partner. This could be resulting from market shortages, disruption due to global events and physical climate-related disruption of upstream supply chains.	The Group operates in numerous locations and its manufacturing contractors are also located in multiple locations, which would help to mitigate the impact of a business disaster. In addition, the key employees in the workforce have been positioned such that they are able to work without interruption by working remotely from their homes. The Group also keeps a cash cushion to ensure that unexpected events don't cause unnecessary indirect adverse effects beyond the direct outcomes.	↓ Low
Competition	There is a risk that BATM is unable to build and maintain competitive advantage in its focus markets. In particular, there is a risk that competitors with greater financial resources may develop technology that is superior to that of the Group and they may also adopt more aggressive pricing models or undertake more extensive advertising and marketing campaigns.	The Group operates in large markets, but with a focus on areas where it can establish a leadership position through technological expertise and innovation. The Group ensures that its products remain world-leading through investment in R&D. It maximises its resources and enhances its routes-to-market by establishing partnerships, collaborations and joint ventures. In 2025, the Group also expanded its sales personnel for its networking and cybersecurity activities.	- Mild
Customers and partners	There is a risk of harm to the Group’s revenues as a result of termination of business relationships with material customers or partners and sales agents. This risk is increased by the challenging global macroeconomic conditions and the impact that this could have on the business and viability of customers and partners.	The Group maintains ongoing dialogue with its customers and business partners in order to identify ahead of time any potential problems arising on the part of the customer and in order to maintain a close relationship with its customers. The Group also does not have a significant reliance on one or few customers or partners.	↑ Mild
Research & Development (R&D)	There is a risk that R&D programmes overrun or do not deliver the expected benefits.	With respect to R&D, the Group’s strategy has been to diversify its R&D operations among a variety of teams and by using different R&D funding sources – thus reducing the R&D risk. Any significant new R&D projects are brought to the Board for consideration. In addition, the Group intends to increase its R&D investment in 2026.	↑ Medium
Information security (including cyber security)	There is a risk of information security, data loss and corruption, and physical damage to IT infrastructure.	The Group routinely carries out proactive measures, such as IT evaluations, to ensure that its IT systems have the latest cybersecurity tools and security procedures in place. These procedures include, inter alia, implementing security controls, staff training, routing backups and regular rehearsals of the Groups disaster recovery plan. The Group has established an IT committee, led by the Chief Operating Officer and consisting of managers with professional knowledge and experience in networking and cyber risk, which closely monitor IT and cyber risks. During 2025, the Group’s internal auditor performed an audit on the Group’s IT and cyber resilience, including conducting penetration tests – which is also monitored by external experts. The Group has a cybersecurity insurance policy.	↓ Mild
Market risk	There is a risk that changes in market prices, such as foreign exchange, inflation and interest rates, will lead to financial loss.	The Group’s finance department at the corporate level manages and monitors market conditions and exposure. Most of the cash, income and expenses in each company or subsidiary is held in a way to reduce the Group’s exposure to currency fluctuations. When this is not possible, the Group uses hedging transactions when needed to protect itself against potential currency risk. However, this is only done to a certain extent as the Board believes it is very difficult to hedge against currency fluctuations arising from translation in consolidation in a cost-effective manner. The Group also monitors the impact of inflation and adjusts sales prices to maintain its margins. The Group’s exposure to interest rate risk is low as it has relatively low bank debt. However, due to the impact of changes in interest rates on the financial markets, the Group closely monitors possible indirect impacts.	- Low

* Risk assessment in 2025 compared with 2024. It shows 1) whether the risk was assessed to have increased, decreased or stayed the same compared with the prior year and 2) the risk level, which is calculated based on the scores assigned for each risk for impact, probability and timeframe and ranked as follows: low (0-5), mild (6-10), medium (11-15) and high (>15) .

All of the risk categories have elements related to climate change. For further information on the Group’s climate-related risk management, please see the ‘Strategy’ and ‘Risk Management’ sections of the TCFD Report on pages 22 to 23.