Risks

Kemira is exposed to risks that may arise from its own operations or from changes in the operating environment.

Kemira’s most significant risks relate to the following themes:

• Price and availability of raw materials and commodities
• Suppliers
• Hazard risks
• Changes in customer demand
• Economic conditions and geopolitical changes
• Competition
• Acquisitions
• Innovation and R&D
• Changes in laws and regulations
• Talent management
• Climate related risks
• Risks and impacts of the war in Ukraine

All risks mentioned above are described in more detail in Kemira’s Financial Statements Bulletin 2023 on page 21. Financial risks are described in the Notes to the Financial Statements 2023 from page 70 onwards.

Latest update to the short-term risks and uncertainties

The latest update to the short-term risks and uncertainties can be found from the Q1 2024 interim report (published on April 26, 2024), on page 16:

There have been changes to Kemira’s short-term risks and uncertainties compared to the situation on December 31, 2023. Political strikes in Finland forced a significant part of Finnish pulp and paper mills to curtail or to stop production in March and early April 2024. Also Kemira was forced to curtail production at some of its manufacturing sites in Finland. The political strikes ended in early April. The strikes had a limited impact on Kemira’s Q1 2024 financial performance. However, there is uncertainty as to whether the political strikes will continue, which could have implications on Kemira’s customers and also on Kemira.

Risks and impacts of the war in Ukraine on Kemira

Following the war in Ukraine, Kemira exited Russia in May 2022. At the end of December 2023, Kemira’s net assets in Russia amounted to around EUR 5 million and consisted mainly of cash and cash equivalents denominated in Russian roubles. Kemira is working to repatriate funds from Russia.