Patria operates in the field of defense procurement where industrial participation is a common requirement and prerequisite in contracts.
In its export activities Patria may participate in direct or indirect industrial participation arrangements and activities where (and to the extent that) such are required by the specific government procuring defense equipment from Patria, and where such activities and arrangements create and add value directly (activities related to performance of the main agreement) or indirectly (activities unrelated to performance of the main agreement).
Furthermore, Patria may decide to participate in industrial participation arrangements where participation is in the business interest of Patria Group as a whole, where the value of industrial participation engagements is proportionate to the value of the main agreements or transaction, and provided that such activities are steered and monitored by executive management with clear accountability. Participation in industrial participation arrangements and activities are carried out according to the rules and policies of concerned countries. These industrial participation arrangements may also include externally created industrial participation activities as well as actions on behalf of other entities having industrial participation liabilities when this is possible under applicable rules and policies. Mutual abatements or swaps of industrial participations are also possible, where performed under applicable regulations and with consent of relevant authorities and agreements.
Patria´s industrial participation obligations are duly reported to management, board of directors and audit committee nominated by board of directors of Patria Oyj.
The absolute requirements for all industrial participation arrangements and activities are the following:
- applicable laws, regulations and international treaties allow industrial participation arrangements
- the arrangements are in compliance with Patria Group´s ethical and compliance policies and guidelines related to industrial participation, Patria Group´s Ethical Guidelines, and subject to applicable due diligence on any and all partners and vendors related to such industrial participation arrangements and transactions, with special focus on ensuring anti-corruption.
- Patria conducts a thorough legal analysis of the applicable industrial participation regulations in the specific country in question to mitigate legal risks and to ensure compliance of Patria´s industrial participation activities.
- All the relevant financial and non-financial risks are assessed and mitigated.
- The industrial participation engagements are proportionate to the value of the main agreement or transaction.
Performance of industrial participation obligations of Patria:
- Patria Group´s industrial participation obligations are conducted materially within Patria´s Land business unit (estimated presently at 95% of Patria Group´s industrial participation related obligations). The industrial participation obligations of the other business units are minor, if any.
- Land business unit has specific processes and defined roles and responsibilities concerning industrial participation activities during marketing and as well as sales activities and concerning implementation of industrial participation contracts