Various megatrends influence the security and access solutions industry, driving demand growth and innovation. Rising urbanization creates demand for extended and smarter building infrastructure. Investments in safety and security are increasing amid advances in safety regulations and concerns around geopolitical instability, cybersecurity and asset protection. Increasing digitalization of services, especially cloud-based, mobile and data-driven, is changing how people interact with their physical environment. Sustainability and energy efficiency represent further powerful growth opportunities in the construction industry, driving demand for smarter materials, low-carbon building methods and future-ready infrastructure that reduces costs, emissions and resource over the long term. dormakaba invests significantly in innovation, product development, and sustainability to capture the growth these megatrends generate and to defend and extend its innovation leadership. Read more about our approach to innovation here.
The ongoing and anticipated consolidation of our industry presents further opportunities. Despite past consolidation, the market for security and access solutions remains highly fragmented: the three largest companies hold only about one third of market share. dormakaba intends to strengthen its market position further and will therefore continue to play an active role in industry consolidation.
As a leading global player in security and access solutions, dormakaba leverages innovation and sustainability to maintain and improve its position in a consolidating industry. Our business is characterized by high resilience, high barriers to entry and strong profit pools. Digitalization, country-specific regulation, reliable system integration and continuing after-sales service all reinforce customersʼ need for a close, lasting partnership with their chosen supplier. As a trusted innovator with a comprehensive solutions portfolio, broad and deep global market presence and strong pricing power, dormakaba is well-positioned to anticipate, influence and participate in significant developments in the building industry.
Our brands are key assets in our business development and play a significant role in fostering customer loyalty and differentiation. Our main brand, “dormakaba”, is well known and recognized in the market for seamless flow, smart, secure and integrated access. Segmentation through a select number of strong regional, local and independent brands extends our channel penetration and market reach. Alongside the main brand, our portfolio includes well-established constituent brands such as Best, Alvarado, Kilargo and Groom, which inspire long-term customer loyalty. The Key Systems and Movable Walls businesses operate under the separate brands Dorma Hüppe, Modernfold, Skyfold, Silca, and Ilco.
dormakaba operates in an international business environment subject to a variety of risks. Our risk policy provides a comprehensive framework for identifying, assessing, and mitigating these risks effectively, thereby safeguarding the resilience and success of our operations and objectives. Its primary goal is to secure the future development of the Group, achieve sustainable, profitable growth, and thereby increase enterprise value.
In the course of our business activities, we are exposed to the general risks inherent in any entrepreneurial operation, which may impede or prevent the achievement of our goals. We analyze opportunities to meet or exceed planned targets in order to identify and assess associated risks. We monitor and manage these risks carefully, continuously adapting mitigation plans to changes.
We always base our strategic and operational decisions on a systematic analysis and evaluation of the opportunities and risks related to our assets, financial position and earnings. We avoid risks we assess as incalculable, unreasonably high, or existential.
Opportunities, as defined in our opportunity and risk policy, are chances to use events, developments, or active operations to achieve or exceed planned quantitative and qualitative objectives. Risks, as defined in our risk policy, encompass all internal and external events and developments that could negatively affect our planned economic success. In addition to direct, quantitatively measurable risks, we also consider qualitative risks such as reputational risk.
dormakaba aims to sustainably increase its enterprise value (see Strategy section). Active risk management supports the company’s management in achieving this goal. To identify opportunities and risks at an early stage and control them actively, we have implemented a comprehensive risk management system.
dormakaba operates a global Internal Control System (ICS), which ensures that business activities are correctly recorded, analyzed, evaluated and transmitted to the external accounts. Its essential characteristics with respect to accounting are:
Statutory and internal corporate guidelines and directives ensure consistent and proper financial accounting and reporting. The application of clear and consistent accounting rules and a uniform consolidation software tool secure consistent financial reporting throughout the Group, in line with legal and statutory requirements and our chosen accounting framework, Swiss GAAP FER.
Further information can be found in the Corporate Governance Report 2025/26.
Risk management is integrated into our regular business and decision-making processes, codified in internal rules and regulations, and binding for all Group companies. It comprises an impact-focused assessment of risks, implementation of appropriate risk mitigation measures, regular review of identified risks and measures, and transparent reporting of the risk situation. The Board of Directors (BoD) defines and monitors risk management (“risk governance”), while the Audit Committee (AC) oversees implementation. The Executive Committee (EC) and line managers throughout our organization are responsible for implementing and applying the system.
Our risk management system distinguishes between operational and strategic risks:
Group Internal Audit is responsible for internal audits at dormakaba. It reports directly to the AC and functionally to the Chief Financial Officer (CFO). All audits performed in the financial year 2025/26 followed the annual audit plan approved by the AC.
Our strategy includes active portfolio management, acquisition and divestments. These activities create risks in the evaluation, transaction and integration of the corresponding entities and assets. To minimize them, dormakaba manages acquisition projects rigorously through standardized due diligence and post-merger integration processes, drawing on well-trained specialist employees and professional external support.
In recent years, we have steadily extended our portfolio of electronic and cloud-based solutions. Our products frequently serve security-relevant, increasingly connected applications such as access control systems. This exposes dormakaba to cybersecurity risks – for example, unauthorized access by hackers to sites and premises protected by dormakaba products – with potential reputational damage and liability claims. We counter the increasing significance of these threats during product development by employing the latest methods to identify and close known vulnerabilities in hardware and software before launch. Existing products – mechanical, electronic and cloud-based, undergo continuous testing to maintain robustness against new threats. In addition, we hold product liability insurance covering cyber threats arising from our products, to an economically reasonable extent.
Digital transformation is progressing rapidly, and keeping pace is essential to our success – in our products and their connectivity as well as in our services and operational processes. Sudden, disruptive developments have become common, and existing competitors or new market entrants could use such leaps to create significant advantages. Our innovation management team systematically monitors and analyzes the relevant technologies, while targeted analysis of market and competitive intelligence within mid-term planning ensures that local conditions are also considered. As a manufacturer and supplier of high-quality access products and solutions in the premium market segment, we also face growing price pressure in relevant markets and specific product areas. We counter this risk by developing new products that offer customers more advanced solutions, services and business models, and by continuously improving operational efficiency, thus securing our market position. Systematic strategic pricing complements these efforts.
A significant manufacturing risk is the possibility of a lengthy interruption to operations at one or more of our worldwide production sites, for example due to fire or cyberattack. Supplier failure and poor-quality raw materials and components constitute further risks. Alongside essential insurance protection, loss prevention programs at all manufacturing sites aim to minimize these risks. These programs include regular updates, formulation and implementation of fire prevention measures, regular site visits and systematic risk-grading analyses conducted by our global insurance provider, who also organizes feedback loops and supports improvement projects. Harmonized equipment, processes and capabilities across production sites, complemented by qualified external supplier contingency arrangements, further strengthen manufacturing continuity. To counter the increasing risk of cyberattacks on information technology and operational technology alike, we have established an information security organization that assesses cyber threats and orchestrates mitigation projects to protect vital assets.
Manufacturing processes create the risk of air and water pollution. dormakaba invests continuously in environmental protection measures to minimize this risk; the Sustainability Report 2025/26 provides specific information on measures and relevant certifications.
As a globally active company, dormakaba is exposed to risks arising from the political situation in individual countries and regions, as well as from pandemics, wars and trade conflicts between countries or country groups. Such risk drivers can rarely be influenced. dormakaba carefully monitors such situations and implements prompt and appropriate risk control measures. dormakaba’s top priority is always to protect its employees.
Global uncertainty increased with the outbreak of the war in the Middle East, and the further development of the global economy depends on how the conflict evolves. Ongoing trade tensions and the threat of new tariffs are further sources of uncertainty, and may hinder economic growth.
To respond adequately to a macroeconomic downturn, dormakaba applies state-of-the-art contingency planning to minimize the impact on business operations and supply chains, and thus on customers and employees, while maintaining a strong focus on financial stability. Additionally, scenario planning identifies organizational and geographic units that offer scope for cost reduction, as well as opportunities to introduce new products or fine-tune our approach to specific markets. We monitor and re-evaluate the situation at short, institutionalized intervals to keep pace with geopolitical and economic developments and remain capable of reacting quickly and adequately to change.
IT systems support our main business processes and customer solutions. The failure of these systems, or the permanent loss of data through operating or program error, or through increasingly prevalent external influences such as cybercrime, represents a risk. To limit the risk of failure of critical systems and infrastructure, including operational technology (OT) in manufacturing, our IT strategy applies state-of-the-art protection standards: email address validation, client security protection and monitoring, identity and access control management, network security management, network and infrastructure management (including 24/7 monitoring, high-level firewall protection tools and redundant network connections), special OT cybersecurity measures, and IT continuity operating plans providing redundant data and systems. dormakaba uses advanced threat protection solutions and operates a security operations center to further mitigate cybersecurity risks. A global information security management system (ISMS) in accordance with ISO 27001 is in place. Cybersecurity risk awareness training (e-learnings and behavior training on phishing malware) is mandatory worldwide for all employees with access to corporate IT systems. Additionally, dormakaba holds insurance against cyber threats to its own systems, to an economically reasonable extent.
Successful and timely execution of our global IT strategy – the standardization of applications and infrastructure – is vital for our future success. Failure could result in the delay of integration projects and underperformance of important business or Group-wide processes, with financial consequences.
A Group-wide program drives the mitigation of risks arising from outdated or out-of-maintenance legacy systems.
As a globally active group of companies, dormakaba is exposed to the risk of legal disputes, including product liability, competition and antitrust law and intellectual property rights. Group-wide standards, training and controls have been implemented to mitigate these risks.
International business activities can also give rise to tax-related risks. To identify and manage them, dormakaba has established directives and manuals based on a tax policy approved by the BoD. Intra-Group transactions can raise concerns regarding the correct profit allocation across countries. We adhere to the Arm’s Length Principle as defined by the Organization for Economic Cooperation and Development (OECD), ensuring that profits are taxed where economic value is created. Additionally, we submit an annual Country-by-Country Report (CbCR) detailing the amount of taxes paid. Moreover, all transactions may be subject to export control regulations. Compliance is managed through Group-wide standards, including directives, manuals and employee training. Our Tax and Customs Department works closely with local finance and legal teams and consults external advisors as needed.
All business activities carry compliance risks, especially where the business model involves worldwide production and sales, growth into new markets and international procurement. Significant compliance risks include bribery and corruption, infringements of antitrust and competition law, fraud, preferential treatment of business partners for personal motives and violation of intellectual property rights.
Group Compliance supports our management and employees in taking decisions consistent with applicable laws and corporate regulations and in acting with integrity. Its Compliance Management System meets the most stringent certification requirements under best-practice standards. Group directives, directives and local guidelines covering our main activities provide a full set of internal rules and regulations, and are regularly updated. Beyond mandatory Code of Conduct training for all employees, those whose roles expose them to specific compliance risks receive further training, e.g. in antitrust and anticorruption.
Our international business activities expose us to various financial risks, including liquidity, credit, interest rate and foreign currency risks. We manage liquidity risk centrally through continuous monitoring of cash positions, diversified funding sources and maturities, and adequate credit facilities. Credit risk relates primarily to trade receivables and to deposits with banks and financial counterparties; strict receivables management and collaboration exclusively with highly-rated banks and financial institutions mitigate this risk. Interest rate risk arises mainly from short-term borrowing, while long-term borrowing carries a fixed coupon. Foreign currency exposure results from translation and transaction risks associated with our global operations and financing activities. We actively manage transaction risks through natural hedges, centralized netting arrangements, and, where appropriate, derivative financial instruments, and monitor translation risks on an ongoing basis.
Funding for dormakaba Group companies is managed centrally. Our syndicated revolving credit facility, agreed with a consortium of banks during the financial year 2020/21, amounts to CHF 525 million. Its initial tenor of five years included one two-year extension option and the possibility to increase the facility by CHF 200 million; the extension option was exercised, extending the maturity date to 31 December 2027. Additional bilateral credit facilities are in place with various regional banks. We therefore hold sufficient liquidity reserves to ensure that even unexpected events do not significantly affect our liquidity position. Our long-term financing needs are covered by a bond portfolio consisting of two CHF-denominated bonds: CHF 275 million for 2022–2027 and CHF 200 million for 2025–2030. The bonds secure a solid, well-balanced mid-term maturity structure for dormakaba’s debt portfolio.
From a regulatory perspective, dormakaba is required to report its derivatives transactions under EMIR and FinfraG. The European Market Infrastructure Regulation (EMIR), the EU initiative regulating OTC trade in derivatives, imposes an audit duty. The annual audit under § 20 para. 1 of the German Securities Trading Act for the audit period from 1 July 2024 to 30 June 2025 confirmed that dormakaba maintains an overall, and in all respects appropriate and effective, system for ensuring compliance with the statutory requirements. Switzerland regulates the OTC trade in derivatives through the Finanzmarktinfrastrukturgesetz (FinfraG); all our Swiss-based Group companies are classified as small non-financial counterparties (“NFC”), and have signed agreements with their banks delegating reporting duties.
Our business model could also give rise to further risks, such as sustainability compliance risks (including compliance with materials restriction laws or human rights due diligence laws), environmental and climate change risks, and liability risks resulting from local laws that are not known at Group level. dormakaba counters these risks through diverse measures, including its sustainability framework and organization, the consistently high quality of its products and services, the engagement of legal experts when a legal dispute risk is identified, and appropriate insurance cover. Full disclosure of climate change-related risks is available in dormakaba’s annual submission to the Carbon Disclosure Project (CDP) and in the climate risk analysis in the Sustainability Report 2025/26, aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
In conclusion, dormakaba’s opportunity and risk situation can be rated as moderate. Our risk management system identifies and continuously monitors existing risks and appropriate countermeasures mitigate them where necessary.
With strong brands, a comprehensive portfolio, wide market presence, and an established innovation structure and approach, our prospects for further profitable growth remain promising. Our “From Shape to Growth” strategy, with its three pillars – Elevate Performance, Reduce Complexity and Innovate & Grow – gives dormakaba additional leverage to capitalize on these strengths.
There is no indication of any risk that would endanger the continued existence of dormakaba. No specific risk has been identified that could significantly affect the assets, financial position, or earnings, nor is there evidence of any material liquidity risk. A material deterioration in future assets, financial position and earnings is not expected under the current risk situation. This assessment is based on the assumption that no global economic recession hits the markets in the near future.