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 January-June 2025 Half-Year Financial Report on July 18, 2025)

Global economic uncertainty has continued during the second quarter of 2025, following the heightened threat of a global trade war and increased geopolitical tensions. The risks and impacts are described in more detail in the chapter below.

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 through its customers and suppliers. The Water Solutions business unit has resilient demand throughout economic cycles and yet a trade war would
have implications for Kemira’s customers on the packaging side in particular. 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.