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Borealis AG Public Offering of up to EUR 200000000 Senior Fixed ...

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1.1.14 <strong>Borealis</strong> Gro<strong>up</strong> is subject <strong>to</strong> risks related <strong>to</strong> product liability and claims<br />

The products <strong>of</strong> <strong>Borealis</strong> Gro<strong>up</strong> are in many cases used by other manufacturers for the<br />

production <strong>of</strong> their goods. If the products <strong>of</strong> <strong>Borealis</strong> Gro<strong>up</strong> are defective or not in line with the<br />

required specifications, the goods produced by the Gro<strong>up</strong>'s cus<strong>to</strong>mers could be defective or<br />

otherwise negatively affected, which could expose <strong>Borealis</strong> Gro<strong>up</strong> <strong>to</strong> liability vis-à-vis its<br />

cus<strong>to</strong>mers and end-consumers. Such claims resulting from the delivery by the Issuer <strong>of</strong> defect<br />

products or products that are not compliant with agreed specifications or norms could<br />

materially negatively impact the Gro<strong>up</strong>’s business, results <strong>of</strong> operations and financial<br />

condition.<br />

1.1.15 <strong>Borealis</strong> Gro<strong>up</strong> is subject <strong>to</strong> the risk <strong>of</strong> adversely changing legislative environments in<br />

all markets where it is active (regula<strong>to</strong>ry risk)<br />

The legislation as well as the judicial and administrative practice in the jurisdictions where the<br />

Gro<strong>up</strong> is active might change adversely in respect <strong>of</strong> <strong>Borealis</strong> Gro<strong>up</strong>. The activities <strong>of</strong> <strong>Borealis</strong><br />

Gro<strong>up</strong> are subject <strong>to</strong> national and international laws and regulations. Both the legislation and<br />

judicial and administrative practices in these jurisdictions are subject <strong>to</strong> change in ways that<br />

could adversely affect the Gro<strong>up</strong>.<br />

1.1.16 <strong>Borealis</strong> Gro<strong>up</strong> may experience operational and/or technological problems which may<br />

delay or hinder daily activities or progress <strong>of</strong> ongoing and planned projects<br />

<strong>Borealis</strong> Gro<strong>up</strong> may experience operational and/or technological problems, both <strong>of</strong> its own and<br />

<strong>of</strong> its contractual partners, which may delay or hinder the progress <strong>of</strong> ongoing and/or planned<br />

projects and investments and could have an adverse impact on the Gro<strong>up</strong>'s business,<br />

prospects, financial condition and/or results <strong>of</strong> operations.<br />

1.1.17 <strong>Borealis</strong> Gro<strong>up</strong> could be subject <strong>to</strong> crime, corr<strong>up</strong>tion and money laundering in the<br />

countries where the Issuer operates which may adversely affect the Gro<strong>up</strong>'s ability <strong>to</strong><br />

conduct its business<br />

Organised crime, including ex<strong>to</strong>rtion and fraud, poses a risk <strong>to</strong> businesses in certain countries<br />

where the Gro<strong>up</strong> operates. Certain countries where <strong>Borealis</strong> Gro<strong>up</strong> operates still face<br />

considerable weaknesses in the fight against corr<strong>up</strong>tion and organized crime. Property and<br />

employees may become targets <strong>of</strong> theft, violence or ex<strong>to</strong>rtion. Threats or incidents <strong>of</strong> crime<br />

may force the Gro<strong>up</strong> <strong>to</strong> cease or alter certain activities or <strong>to</strong> liquidate certain investments,<br />

which may cause losses or have other negative impacts on <strong>Borealis</strong> Gro<strong>up</strong>. In certain<br />

countries where the Gro<strong>up</strong> is operating there is the risk <strong>of</strong> higher levels <strong>of</strong> corr<strong>up</strong>tion, including<br />

the bribing <strong>of</strong> <strong>of</strong>ficials for the purpose <strong>of</strong> initiating and/or avoiding investigations by government<br />

agencies and other purposes. Allegedly, there have also been instances in which government<br />

<strong>of</strong>ficials have engaged in selective investigations and prosecutions <strong>to</strong> further the interest <strong>of</strong> the<br />

government and individual <strong>of</strong>ficials. Furthermore, in certain countries where the Gro<strong>up</strong><br />

operates, there have been allegations that many members <strong>of</strong> the media allegedly regularly<br />

publish biased articles in return for payment. The Gro<strong>up</strong>'s operations could be adversely<br />

affected by illegal activities, corr<strong>up</strong>tion or claims implicating the Gro<strong>up</strong> in illegal activities.<br />

Corr<strong>up</strong>tion and theft may also arise within the Issuer; for example, through products being<br />

s<strong>to</strong>len. Such activities may cause losses or have other negative impacts on <strong>Borealis</strong> Gro<strong>up</strong>.<br />

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