Financial risk management

Sufficient funding arrangements planned well in advance

• Sufficient liquidity reserves, diverse sources of financing and balanced debt maturity profile to minimize refinancing risk
• No more than 30 per cent of the total interest-bearing debt maturing during the next 12 months

Optimal capital structure to enable efficient operations while maintaining sufficient solvency

• Group level capital structure with a main objective of sustaining a strong credit risk profile and securing the continuity of business operations

Optimal level of financial risk and minimized financing expenses

• Majority of fuel and electricity price risk hedged with derivatives and index-linked customer agreements
• Interest rate risk: 1) average interest fixing period at minimum of 3 years 2) hedge ratio of the total interest-bearing debt portfolio at above 50 per cent
• All committed cash flows in foreign currency fully hedged

Sufficient liquidity maintained in all scenarios

• Cash and committed credit lines equaling a minimum of 1.2x of the operative cash needs for the next 12 months

Mitigating counterparty risks related to customers, suppliers and financial counterparties

• Credit assessment of suppliers and business customers
• Guarantees to cover counterparty risks
• Only well-known counterparties in financial transactions