Outlook. The Deka Group’s planning is based on the assumptions about future economic development that appear the most probable from a current standpoint. However, plans and statements about expected developments and the course of business during 2020 are subject to uncertainty. Actual trends in the international money, capital and property markets or in the Deka Group’s business divisions may diverge significantly from our assumptions, which are partly based on expert estimates. The coronavirus that emerged in January has brought tourism and industrial production largely to a standstill in China with strict travel restrictions and mandatory factory shutdowns over the Chinese New Year and beyond. At the time the forecast report was completed (28 February 2020) it was not possible to reach a conclusive estimate as to the global impact on the economy. The economy could, for example, come under pressure as a result of potential production stoppages, sales problems and deteriorating corporate and consumer sentiment. According to the supplement (Nachtragsbericht) regarding the development of the impact of the coronavirus in the period leading up to 24 March 2020 the coronavirus has led to further restrictions and has also significantly increased the likelihood of further pressure on the economy, as well as negative implications in the future resulting from the period of economic restrictions, for example in the form of job losses or company insolvencies, since the beginning of March. As a result, a gloomier sentiment among the corporate sector and consumers alike has also been exacerbated further. The capital markets have seen periods of plummeting share prices with higher volatility, and the financial sector has been hit by a tense liquidity situation in some cases. As at 24 March 2020 it was still not possible to reach a conclusive estimate as to the global impact on the economy. If, however, the economic impact of the coronavirus translates into sustained pressure on the economy and the capital market, and if the current situation persists or deteriorates further, the economic result for 2020 could also be much lower than the 2019 figure. This could result, in particular, from lower than expected net commission and net financial income, or from risk provisions in the lending and securities business that are higher than predicted. In this case, it is possible that the other key management indicators, namely total customer assets, net sales, the Common Equity Tier 1 cap...
