Risks

Kemira is exposed to risks that may arise from its own operations or from changes in the operating environment.

Kemira’s most significant risks relate to the following themes:

• Price and availability of raw materials and commodities
• Suppliers
• Hazard risks
• Changes in customer demand
• Economic conditions and geopolitical changes
• Competition
• Acquisitions
• Innovation and R&D
• Changes in laws and regulations
• Talent management
• Climate-related risks

All risks mentioned above are described in more detail in Kemira’s Financial Statements Bulletin 2024 starting from the page 20. Financial risks are described in the Notes to the Financial Statements 2024.

Short-term risks and uncertainties (published at the Q1 report on April 25, 2025)

There have been changes to Kemira’s short-term risks and uncertainties compared to the end of 2024. Global economic uncertainty has increased following the heightened threat of a global trade war.

Risks and impacts of a possible global trade war

Kemira mostly operates locally for local customers. Kemira has 58 manufacturing facilities globally located in relatively close proximity to customers, particularly in Water Solutions. The direct impacts of a global trade war are expected to be rather limited due to the resilient nature of Kemira’s business model. In the United States, Kemira sources some raw materials e.g. from Canada and China. Total trade flows, including sales and raw material purchases, into the US from all regions amounted to less than 5% of Kemira’s total revenue in 2024. The
trade flows between China and the US are limited and combined US-China and China-US trade flows amounted to less than EUR 20 million in 2024.

Potential indirect risk is expected to be more relevant. Kemira is exposed to indirect impacts from a possible global trade war via its customers and suppliers. The Water Solutions business unit has resilient demand throughout economic cycles, whereas a trade war would have implications for Kemira’s customers particularly on the packaging side. This could have an adverse impact on the demand for Kemira’s products. In addition, prolonged economic uncertainty could lead to a global recession, which could have negative impacts on Kemira’s suppliers, customers and partners.