Economic responsibility

Economic responsibility

Sustainable organic growth, financial stability and target-oriented corporate responsibility work are the key elements in Kemira’s management of economic responsibility.

Through all our operations we aim to secure Kemira's financial success and thus long-term value creation to our stakeholders. This can be achieved through implementing our long-term strategy, recognizing and managing risks and opportunities, as well as providing transparent information to our stakeholders.

 


Kemira's economic impact   
EUR million   2013 2012  2011 
Customers 
  • Income from customers on the basis of products and services sold, and financial income
 2,267.8 2.312.1  2,192.0 
Suppliers 
  • Payments to suppliers of raw materials, goods and services
-1,686.2  -1,736.5  -1.654.0 
Employees 
  • Wages, salaries and social expenses
-327.1  -340.4  -299.3 
Investors 
  • Interest paid and financial expenses, dividends
-112.8 -113.8 -101.4 
Taxes* -26.5 -30.2 -37.4 
Capital expenditure on maintenance and improvement   -65.3  -75.6  -184.3 
Deficit/Surplus   49.9 15.6  -84.4 
Income from divesting assets  192.9  29.5  138.7 
Capital expenditure on expansion and acquisitions   -132.2  -58.5  -16.9 
Repayment of capital 
  • Repayment of loans (-) and new loans (+)
-128.8 -37.4 66.9
Purchase of non-controlling interests    0 -13.2
Net change in cash  -18.2 -50.8 91

* Income taxes paid

Responsibility through tax management

Through our long-term strategic tax approach we aim at being a responsible corporate citizen in all of our operating countries. Our tax management culture is based on our corporate values, Code of Conduct (.pdf) and tax policies. Our objective is to contribute to the company’s strategic development and growth by taking into account the uncertainty and effects of tax legislation and its interpretations. The tax approach is applied to Kemira Oyj as well as all its subsidiaries in which Kemira has over 50% direct or indirect interest. With our tax approach, we aim at achieving a fair balance between tax optimization and risk management. Our principle is to strictly follow local tax practices and legislation in all regions where we have a tax status. One of our tax management objectives is to communicate the general tax related principles within the company in order to harmonize our practices and working methods for tax planning, transfer pricing, tax compliance, tax reporting and documentation requirements in order to reach the most optimal tax position.

We do not operate in tax haven countries as defined by the OECD for taxation reasons. Our limited operations in tax havens are due to business reasons, e.g. raw material sourcing and key customer’s locations.

Kemira’s principle is to apply the arm’s length transfer pricing principles according to OECD recommendations in all intra-group product, service, IPR and financing transactions.

Income taxes paid by region
EMEA 68.9%
NA 27.7%
SA 2.1%
APAC 1.3%
Total 100%