Frequently Asked Questions (FAQ) on kp’s Response to the Coronavirus (Covid-19) Pandemic

Monday, 2nd November 2020
Dear Valued Customer,

In a letter published on our website, our CEO, Scott Tracey, reassures you that we have business continuity plans in place and that we are doing all we can to avoid disruption from the global Coronavirus (Covid-19) pandemic to our service to you. Our products are a vital part of maintaining daily life across the world and we take that very seriously.

Further to that letter, we have prepared a list of frequently asked questions (FAQ) posed by many of our customers.

We have provided answers to the best of our knowledge on the date and time of publication. We will review this document regularly, but please consider that the situation is dynamic and could change between revision dates. Please be assured that your commercial contact at kp will proactively communicate any known changes to your confirmed orders to you.

The frequently asked questions have been organised in four sections:
1. Sourcing
2. Operations
3. Distribution
4. Customer orders

1. Sourcing

S01. To what degree does kp depend on imported raw materials?
The mix of domestic and foreign suppliers differs by site and by type of raw material. Generally, we strive for short supply chains and multiple sources. Although travel restrictions apply in multiple countries, the movement of our raw materials is currently not restricted in any of the jurisdictions in which we operate.

S02. Are any of kp's critical suppliers closed due to the Coronavirus?
None of our critical suppliers have reported closures in operations due to Covid-19. While some suppliers have had closures, to date this has not impacted us as we have thus far been able to source from alternative suppliers.

S03. To what degree are kp's suppliers exposed to Coronavirus-related risks?
Although kp's suppliers are subject to legal requirements and potential risks like other companies, it should be noted that our raw materials suppliers are in the process industry, which is highly automated and less labour-intensive than manufacturing in general.

S04. What actions for risk mitigation has kp taken in its sourcing activities?
In response to the spread of Covid-19, kp has done a risk assessment of raw materials supplies. We have made risk adjustments to our required inventory levels of raw materials and other critical supplies.

2. Operations

O01. Are kp’s sites operational?
Currently, all our sites are fully operational.

O02. Are kp's support functions operational?
All our support functions are fully operational. Wherever possible, our staff are working from home to minimise the risk of infection to themselves, to colleagues and to our communities. In some countries we have been able reduce working from home due to improvements of the situation after a thorough risk assessment and in line with local rules and regulations.

O03. What measures has kp taken to ensure the continuity of operations?
Additional hygiene procedures are strictly mandated. Wherever possible, meetings have been replaced by video and telephone conferencing and support staff are working from home. Additionally, recommendations for personal hygiene and personal safety are being shared with all employees on a regular basis.

O04. Could you describe kp’s disaster recovery plan?
As a global supplier, we routinely balance loading across sites, which we would also consider when necessitated by measures to contain Covid-19.

O05. Have kp operations been impacted by Covid-19 infections of employees?
As of today, kp’s operations have not been negatively impacted by Covid-19 infections of employees or contractors.

O06. Have employee quarantines affected kp’s operations?
Restrictions to the movement of people and quarantine requirements apply in multiple jurisdictions in which we operate and continue to change. To date, the continuity of our primary business processes have not been impacted and we’ve been able to still meet our customers' demands.

O07. What are the most important risks to kp?
An important risk would be the infection of production employees and the quarantine of larger groups of our employees. For measures to mitigate this risk, please refer to answers O03 and O04.

3. Distribution

D01. Are there any restrictions on exports?
None of the jurisdictions in which we operate have implemented any bans, quota or other limitations to the products that we export.

D02. Is kp prioritising domestic customers over international ones?
When kp has confirmed an order, we will do everything we possibly can to execute that order on time, irrespective of domestic or international customer status.

D03. What is the risk of disruption in transportation?
We are currently generally able to deliver goods to all of our customers' locations, although there are additional efforts for dealing with various challenges, such as:
- sea freight to Asia: due to recently reduced exports out of Asia, the number of containers available for return to Asia is less than normal, but still sufficient for us.
- air freight: due to fewer passenger flights, the available cargo space is currently reduced.
- road freight: additional border controls may cause delays that have to date been limited to a few hours. Lockdowns are causing some transport difficulties. The following link provides information on real-time border delays in Europe:

4. Customer Orders

C01. Are any of my orders delayed?
Whether for Covid-19 or for any other reason, kp would always communicate changes to delivery dates proactively to its customers. So far, our on-time delivery metrics are not negatively impacted by Covid-19.

C02. Could you reconfirm delivery dates?
As kp would always contact customers proactively if there were a need to reconfirm delivery dates, there is no need to reconfirm orders for which we have not contacted you yet.

C03. Would kp recommend that we place orders earlier?
Please communicate your critical orders to your commercial contact at kp, but general panic buying might cause more disruptions in the supply chain than they solve.

C04. What is the risk of delay for my orders?
As per the answers in the "Operations" section, we are confident that we can produce all confirmed customer orders on time. As per answer D03 we might experience limited delays in shipping. If this risk becomes reality, we will contact you.

C05. Should I inform kp if my facilities are closed, stopping me from taking deliveries?
If Covid-19 forces you to suspend operations, please contact your commercial contact at kp immediately, so that we can review the impact on open orders with you.