Koskisen Oyj

“Regulatory risks related to the preservation of carbon sinks (transition risks) – harvesting restrictions Upstream Koskisen’s manufacturing operations (panel and sawmill industries) are highly dependent on wood raw material. EU and national legislation is expected to impose long-term restrictions on harvesting (e.g., to meet the climate targets set out in Finland’s Climate Act). Any disruptions in the availability, price, or quality of wood raw material would likely have a broad impact on operational cash flows and the value of assets.”

Annual report 2025A · The company itself

“Impacts on the extent and condition of ecosystems Regulatory risks related to biodiversity preservation (transition risks) – restrictions on the use of natural resources Upstream Koskisen’s manufacturing operations (panel and sawmill industries) are highly dependent on wood raw material. The decline in biodiversity may lead to regulatory restrictions at the EU or national level regarding the use of natural resources. Disruptions in the availability, price, or quality of wood raw material would likely have broad impacts on the company’s cash flows and asset values.”

Annual report 2025A · The company itself

“EU and national policy changes can significantly limit the supply of wood and lead to a decrease in production volumes. Tighter regulation of carbon dioxide emissions will increase costs throughout the value chain.”

Annual report 2025A · The company itself

“Voluntary conservation measures related to biodiversity protection, stricter certification criteria or increasing sustainability requirements from customers may limit the forest area available for commercial use and thereby reduce the availability of wood raw material. Koskisen manages this risk through diversified procurement and long-term supplier relationships.”

Annual report 2025A · The company itself

“The acquisition supports both objectives: it directly increases the Sawn Timber Industry’s net sales by approximately one third and, at the same time, secures the availability of raw material and enables organic growth in the Panel Industry.”

Annual report 2025A · The company itself

“By increasing sawing volumes, we ensure the availability of wood raw material also for the needs of the Panel Industry through increasing wood procurement volumes and production side streams o.”

Annual report 2025A · The company itself

“Risks related to the physical impacts of climate change may disrupt the availability of raw materials Upstream Koskisen’s manufacturing operations (panel and sawmill industries) are highly dependent on wood raw material. Climate change may have adverse effects on forest growth and health due to rising average temperatures. These effects may include forest damage, wildfires, storms, compacted snow, reduced forest growth, warmer winters, and increased vulnerabilities. Disruptions in the availability, price, or quality of wood raw material would likely have wide-ranging impacts on operational cash flows and asset values.”

Annual report 2025A · The company itself

“Resource depletion risks concerning critical inputs, such as wood, water, adhesives, coatings, metals, and plastics Financial risk All time horizons Upstream Koskisen’s manufacturing operations (panel, sawmill, and housing industries) are highly dependent on wood raw material and a range of other resources. Over the long term, resource depletion may lead to the scarcity of certain inputs, which in turn can affect both prices and availability.”

Annual report 2025A · The company itself

“Koskisen’s most significant short-term physical risks are related to sudden weatherrelated events and their effects on the availability of wood raw material. Acute climate change-related events can reduce the duration of the soil frost period and make harvesting more difficult. This has a direct impact on the availability of wood and increases costs.”

Annual report 2025A · The company itself

“In the medium term, the chronic physical changes caused by climate change are emphasised. High temperatures and drought cause slow growth and forest damage, which affects the availability and quality of wood. These factors increase the price of wood raw material and reduce profitability.”

Annual report 2025A · The company itself

“In addition, the loss of biodiversity accelerated by climate change affects the natural ability of forests to fight diseases and pests, which can lead to a reduction in the amount of wood.”

Annual report 2025A · The company itself

“In the long term, extreme weather events such as storms, cyclones and floods, which affect the availability and price of wood raw material, emerge as the most significant risk. These events can have a significant impact on costs and profitability over the longer term.”

Annual report 2025A · The company itself

“At the same time, climate change mitigation and the protection of biodiversity are becoming increasingly important themes in forest management, which can affect the willingness of forest owners to sell timber and thus weaken the availability of raw materials.”

Annual report 2025A · The company itself

“The renewable main raw material, wood, provides a sustainable basis for Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 69 business.”

Annual report 2025A · The company itself

“The resilience analysis identified the following risks: • Availability of raw materials: the greatest risk of the strategy is seen as the decline of biodiversity, which has a direct impact on the availability of raw materials.”

Annual report 2025A · The company itself

“Short-term risks highlight fluctuations in raw material prices, which may be caused by, for example, increased unpredictability of weather phenomena. In addition, in the short term, potential regulatory changes, such as immediate additional restrictions on the use of natural resources, may be significant.”

Annual report 2025A · The company itself

“Koskisen’s most important resource inflows are wood, the main raw material used in manufacturing, and other raw materials and packaging materials.”

Annual report 2025A · The company itself

“Koskisen invests in product development and new innovation in the field of low-carbon solutions, actively develops forest management methods and strengthens cooperation with forest owners. From the point of view of the continuity of operations, it is essential to ensure wood procurement that considers biodiversity to secure the supply of raw materials in the future.”

Annual report 2025A · The company itself

“The Sawn Timber Industry segment’s revenue amounted to EUR 203.9 (139.7) million and EBITDA to EUR 14.3 (7.2) million.”

Annual report 2025A · The company itself

“The Panel Industry segment’s revenue amounted to EUR 150.9 (142.4) million and EBITDA to EUR 15.7 (17.7) million.”

Annual report 2025A · The company itself

“The most significant opportunities in the downstream value chain are the increased use of wood products in construction and as a carbon sink in the medium and long term.”

Annual report 2025A · The company itself

“The development of new innovative products helps reduce the carbon footprint and offers significant growth opportunities.”

Annual report 2025A · The company itself

“In addition, extreme weather events such as storms and floods can cause significant disruptions to production volumes. Risks related to power outages are also acute and can lead to production stops and reduced production volumes, which has a direct impact on the business.”

Annual report 2025A · The company itself

“In the medium and long term, climate change mitigation can increase harvest volumes and facilitate production and revenue growth. The change in the growing season caused by global warming increases the growth rate of trees and opens up new opportunities for cultivating various tree species.”

Annual report 2025A · The company itself

“The impacts of the EU Biodiversity Strategy for 2030 are estimated to increase costs and require new operating models in the value chain. • The negative impacts of climate change on forests will increase. Droughts and extreme weather events are becoming more common. This is expected to weaken the availability of raw materials and increase price volatility.”

Annual report 2025A · The company itself

“In particular, the loss of forest biodiversity and soil degradation are critical factors that can weaken the raw material supply chain. • Impacts of climate change: The degradation of ecosystems, including the reduction of forest carbon sinks and the increase in extreme weather events, increases both operating costs and difficulties in accessing raw materials.”

Annual report 2025A · The company itself

“The decline in biodiversity weakens the ecological resilience of forests, increases the impacts of pests, diseases and climate-related risks and reduces tree growth and quality. This may lead to reduced availability of wood raw material, price fluctuations and disruptions in the supply chain.”

Annual report 2025A · The company itself

“Risks related to the physical impacts of climate change may disrupt the availability of raw materials Upstream Koskisen’s manufacturing operations (panel and sawmill industries) are highly dependent on wood raw material. Climate change may have adverse effects on forest growth and health due to rising average temperatures. These effects may include forest damage, wildfires, storms, compacted snow, reduced forest growth, warmer winters, and increased vulnerabilities. Disruptions in the availability, price, or quality of wood raw material would likely have wide-ranging impacts on operational cash flows and asset values.”

Annual report 2025A · The company itself

“Koskisen’s most significant short-term physical risks are related to sudden weatherrelated events and their effects on the availability of wood raw material. Acute climate change-related events can reduce the duration of the soil frost period and make harvesting more difficult. This has a direct impact on the availability of wood and increases costs.”

Annual report 2025A · The company itself

“In the medium term, the chronic physical changes caused by climate change are emphasised. High temperatures and drought cause slow growth and forest damage, which affects the availability and quality of wood. These factors increase the price of wood raw material and reduce profitability.”

Annual report 2025A · The company itself

“In the long term, extreme weather events such as storms, cyclones and floods, which affect the availability and price of wood raw material, emerge as the most significant risk. These events can have a significant impact on costs and profitability over the longer term.”

Annual report 2025A · The company itself

“From the perspective of climate change adaptation, the environmental principles emphasise goals and measures that focus on reducing physical acute and chronic risks in the upstream value chain. Commitment to the procurement of certified wood raw material, considering biodiversity in forest management and providing advice and training to forest owners and logging companies promote the resilience of forest nature to extreme weather events and, as climate change progresses, increasing drought, heat and the resulting loss of biodiversity.”

Annual report 2025A · The company itself

“Resources inflows, including resource use Improved profitability through increased utilisation of side streams and recycled materials, as well as enhanced material efficiency Financial opportunity All time horizons Own operations From a material efficiency perspective, reducing the material input-to-output ratio improves costefficiency. Identifying new applications and opportunities for utilising side streams or by-products in higher value-added products can have a positive impact on revenue and profitability.”

Annual report 2025A · The company itself

“Koskisen can also leverage opportunities related to circular economy and material efficiency in the near future. Efficient use of by-products and investments in new wood-based solutions can generate added value and revenue already within the year.”

Annual report 2025A · The company itself

“Creating new wood-based products and thereby increasing the value-added rate is a key part of Koskisen’s strategy.”

Annual report 2025A · The company itself

“Koskisen’s ability to create value is based on a materialefficient and integrated value chain from the forest to the end product. Koskisen’s efficient integrated operating model enables the optimum use of wood as a raw material at its production facilities.”

Annual report 2025A · The company itself

“The by-products generated early in the production process, such as bark, are used for heat production of the production plant processes. The byproducts generated by the Sawn Timber Industry segment and Panel Industry’s production, such as part of the wood chips and sawdust, are used in chipboard production.”

Annual report 2025A · The company itself

“Resources inflows, including resource use Reducing natural resource depletion and advancing circular economy principles through the use of production side streams in product development Positive impact All time horizons Own operations Various side streams from sawing and forest management (such as sawdust, logging residues, etc.) are utilised in the panel industry, helping to slow down the depletion of primary resources and natural raw materials. through the use of production side streams in energy and heat production Positive impact All time horizons Own operations Various side streams from sawing and forest management (such as sawdust, logging residues, etc.) are used in heat production, reducing the need for external or fossil fuels in the process. and advancing circular economy through recycling Positive impact All time horizons Own operations For example, new uses are identified for offcuts from sawn timber and other recyclable waste materials.”

Annual report 2025A · The company itself

“Koskisen invests in product development and new innovation in the field of low-carbon solutions, actively develops forest management methods and strengthens cooperation with forest owners. From the point of view of the continuity of operations, it is essential to ensure wood procurement that considers biodiversity to secure the supply of raw materials in the future.”

Annual report 2025A · The company itself

“In a joint pilot by Koskisen, Kesko and Purkupihа, wooden packaging removed from retail distribution chains, such as pallets, is utilised as raw material for chipboard. The overall impact of the solution on emissions cannot yet be fully assessed, but the pilot addresses a previously missing industrial-scale solution in Finland for end-of-life wood, which has mainly been used for energy recovery.”

Annual report 2025A · The company itself

“Innovative solutions and the development of new wood-based products are a key part of Koskisen’s strategy. The company continuously invests in product development that also supports resource efficiency and circular economy objectives.”

Annual report 2025A · The company itself

“With regard to circular economy, the company is committed to operating in accordance with material efficiency principles, which in particular means using wood raw material as fully as possible. The environmental principles sets out a goal of developing the use of wood raw material side streams and increasing the degree of processing as product components.”

Annual report 2025A · The company itself

“In cooperation with Kesko Oyj, Koskisen has piloted a solution in which wooden packaging removed from the retail distribution chain, such as pallets, is utilised as raw material for chipboard. Increasing the share of recycled material in chipboard products is one of Koskisen’s sustainability targets, and the new product expands the range of circular economy products.”

Annual report 2025A · The company itself

“The use of recycled material in chipboard production will be increased, with the aim of increasing the share of recycled material in the chipboard raw material to 5% by 2027.”

Annual report 2025A · The company itself

“Opportunities related to the transition to a low-carbon society – growth in demand for wood construction and wood-based products Financial opportunity Downstream If the construction industry begins to shift away from more emission-intensive concrete structures toward wood construction—driven by changes in customer behaviour or regulatory reforms— demand for Koskisen’s products may increase. This growing demand would likely have a positive impact on cash flows, both for Koskisen and the broader sector, and as future prospects improve, it may also enhance access to financing as well as influence its cost and terms.”

Annual report 2025A · The company itself

“Resource outflows related to products and services Circular economy transition opportunities – increased demand for renewable, wood-based products Financial opportunity Downstream Various EU or national level regulations related to material efficiency and recycling requirements – as well as changes in customer behavior – may increase demand for wood-based products suitable for reuse. This could lead to higher revenue and improve the market value of the company’s shares as future prospects strengthen.”

Annual report 2025A · The company itself

“In the long term, the company can also benefit from global megatrends such as the green transition and the circular bioeconomy. The use of wood raw material and products may increase, especially due to the demand for long-lasting and more sustainable solutions, which will bring significant growth opportunities for the company.”

Annual report 2025A · The company itself

“The Sawn Timber Industry segment’s revenue amounted to EUR 203.9 (139.7) million and EBITDA to EUR 14.3 (7.2) million.”

Annual report 2025A · The company itself

“In the medium term, Koskisen can take advantage of opportunities, such as the anticipated growth in demand for wood construction and products, especially due to changes in legislation and customer behaviour.”

Annual report 2025A · The company itself

“The transition to a lower-carbon economic system is a macroeconomic megatrend that strongly supports Koskisen’s strategy, as it increases the demand for renewable lowcarbon materials in Koskisen’s customer segments.”

Annual report 2025A · The company itself

“The Panel Industry’s plywood and chipboard products are used in construction, transportation equipment, die-cutting, interior decoration and furniture, carpentry, as well as walls and floors. Kore products are flooring solutions for transportation equipment in the automotive industry. The products of the Sawn Timber Industry are used in construction (floors, walls and structural sawn timber), carpentry, packaging and timber trade.”

Annual report 2025A · The company itself

“The products are used in construction, packaging and furniture industries.”

Annual report 2025A · The company itself

“Positive impacts on employee health and well-being Positive impact All time horizons Own operations Various health promoting aspects: safe working environment and safety development measures, access to occupational health care, various counselling services.”

Annual report 2025A · The company itself

“Risks posed by industrial action, such as strikes Financial risk All time horizons Own operations Koskisen’s ability to make a profit depends on the work input of its skilled personnel. In the event of a strike or other industrial action, operations may come to a complete standstill, causing delays in deliveries and loss of income G1 Business Conduct Impacts Description Corporate culture Positive impacts related to stakeholder relationships Positive impact All time horizons Own operations Corporate culture and ethical operating practices significantly influence Koskisen’s stakeholder relationships, such as customer relationships and the availability of workforce.”

Annual report 2025A · The company itself

“At the beginning of Koskisen’s value chain, there are actions that cannot completely exclude the risk of potential human rights violations, such as in the collection and manufacture of raw materials for key production inputs. In the assessment of the identified potential negative social impacts associated with these measures, emphasis was placed on the severity value in relation to the likelihood of their realisation.”

Annual report 2025A · The company itself

“Working conditions – health and safety Negative effects on employee health Negative impact All time horizons Own operations Various work-related hazards, accidents and work-related health problems: physical (accidents, heat, noise), ergonomic (poorly adjusted workstations, difficult trajectories) and chemical and particulate matter (exposure to substances hazardous to health, e.g. birch wood dust if inhaled, carcinogenic + other chemicals harmful to health, production consumables) negative effects on workers’ health.”

Annual report 2025A · The company itself

“The personnel principles ensure the achievement of the objectives outlined in the operating policy regarding material sustainability topics, i.e. occupational health and safety and being an employer. In accordance with the principles, occupational safety management is based on the certified ISO 45001 system.”

Annual report 2025A · The company itself

“Processes for identifying actions needed for continuous improvement of occupational safety Koskisen develops the well-being at work of its personnel in a comprehensive and systematic manner. The company’s actions are based on continuous, daily supervisory Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 105 work and both organisation-wide and targeted well-being programmes implemented at all sites.”

Annual report 2025A · The company itself

“Koskisen actively works to strengthen its employer image. The company participated in the Duuniexpo recruitment event and cooperates with various stakeholders to promote international recruitment.”

Annual report 2025A · The company itself

“The transition to renewable energy requires significant investments, especially in transport and harvesting equipment.”

Annual report 2025A · The company itself

“The new log yard constructed in connection with the Järvelä sawmill was commissioned in February. The investment supports the Sawn Timber Industry’s growth strategy by enhancing production efficiency and significantly improving productivity. With the completion of the log yard, all Sawn Timber Industry operations are now located on a single site. This substantially reduces both the transportation costs of wood raw material and the carbon footprint of logistics.”

Annual report 2025A · The company itself

“To increase sawmill production, the company invested in new channel kilns at the Järvelä sawmill, increasing the drying capacity of sawn timber by approximately 15 per cent. In addition to increasing drying capacity, the investment improves the quality of the sawn timber. The investment ensures sufficient drying capacity for production volumes of up to 450,000 cubic metres.”

Annual report 2025A · The company itself

“One of the key growth drivers is the new sawmill in Järvelä and the development of closely related operations. The new sawmill is the heart of the entire integrated and synergistic business.”

Annual report 2025A · The company itself

“Wood Procurement participated in the MESI project (Electrification of Timber Transport), which aims to provide forest companies and transport operators with a knowledge base to support decision-making on fully electric timber transport solutions and to promote readiness for actions across different time horizons.”

Annual report 2025A · The company itself

“In the Järvelä sawmill industry, a pilot trial of an electric wheel loader has been implemented together with a contractor. Koskisen’s long-term partner, Adolf Lahti has introduced a fully electric wheel loader to replace a previously used diesel-powered machine.”

Annual report 2025A · The company itself

“Resource outflows related to products and services Circular economy transition opportunities – increased demand for renewable, wood-based products Financial opportunity Downstream Various EU or national level regulations related to material efficiency and recycling requirements – as well as changes in customer behavior – may increase demand for wood-based products suitable for reuse. This could lead to higher revenue and improve the market value of the company’s shares as future prospects strengthen.”

Annual report 2025A · The company itself

“In the long term, the company can also benefit from global megatrends such as the green transition and the circular bioeconomy. The use of wood raw material and products may increase, especially due to the demand for long-lasting and more sustainable solutions, which will bring significant growth opportunities for the company.”

Annual report 2025A · The company itself

“At the same time, operating models that take biodiversity into account can also represent an opportunity, as proactive adaptation to market and regulatory developments strengthens the company’s competitive position in markets where sustainably sourced wood is an increasingly important competitive factor.”

Annual report 2025A · The company itself

“Koskisen develops products and production processes that take these principles into account throughout the value chain and product life cycle.”

Annual report 2025A · The company itself

“Regarding the impacts of biodiversity loss, the company’s Environmental Principles commit it to maintaining biodiversity in the forests it owns. Koskisen advises and trains forest owners on actions that support and promote biodiversity in forest management and harvesting operations.”

Annual report 2025A · The company itself

“The development of new innovative products helps reduce the carbon footprint and offers significant growth opportunities.”

Annual report 2025A · The company itself

“Opportunities for energy selfsufficiency achieved through own energy production Financial opportunity All time horizons Own operations Because e.g. it is possible to produce electricity in connection with heat production, energy selfsufficiency can improve. Energy self-sufficiency increases the buffer against future energy supply disruptions.”

Annual report 2025A · The company itself

“The increase in the production volumes of low-carbon products increases absolute energy consumption, but correspondingly, relative energy efficiency improves, enabled by existing and future technology investments. Most of the energy used by Koskisen is based on the use of renewable wood-based fuel generated as a side stream of its own production.”

Annual report 2025A · The company itself

“The new log yard constructed in connection with the Järvelä sawmill was commissioned in February. The investment supports the Sawn Timber Industry’s growth strategy by enhancing production efficiency and significantly improving productivity. With the completion of the log yard, all Sawn Timber Industry operations are now located on a single site. This substantially reduces both the transportation costs of wood raw material and the carbon footprint of logistics.”

Annual report 2025A · The company itself

“District heating pipeline connecting the mill areas The district heating pipeline connecting the Järvelä mill areas was commissioned for trial operation at the end of the year. The connecting pipeline primarily serves to meet the increased energy demand of the Sawn Timber Industry, which has grown and will continue to grow as a result of increased production and drying capacity at the Järvelä sawmill. Connecting the district heating networks also enables the full utilisation of unused energy production capacity in the Panel Industry.”

Annual report 2025A · The company itself

“Wood Procurement participated in the MESI project (Electrification of Timber Transport), which aims to provide forest companies and transport operators with a knowledge base to support decision-making on fully electric timber transport solutions and to promote readiness for actions across different time horizons.”

Annual report 2025A · The company itself

“Koskisen’s integrated sawmill industry operating model is based on the use of renewable raw materials in accordance with the cascade principle in its own operations. The wood raw material is primarily used to produce long-life sawn timber and plywood products derived from fibre wood, and side streams, such as chips and sawdust from production, are used in chipboard.”

Annual report 2025A · The company itself

“Koskisen does not tolerate deforestation in its supply chain.”

Annual report 2025A · The company itself

“The Panel Industry’s plywood and chipboard products are used in construction, transportation equipment, die-cutting, interior decoration and furniture, carpentry, as well as walls and floors. Kore products are flooring solutions for transportation equipment in the automotive industry. The products of the Sawn Timber Industry are used in construction (floors, walls and structural sawn timber), carpentry, packaging and timber trade.”

Annual report 2025A · The company itself

“The Panel Industry’s plywood and chipboard products are used in construction, transportation equipment, die-cutting, interior decoration and furniture, carpentry, as well as walls and floors. Kore products are flooring solutions for transportation equipment in the automotive industry. The products of the Sawn Timber Industry are used in construction (floors, walls and structural sawn timber), carpentry, packaging and timber trade.”

Annual report 2025A · The company itself

“In Panel Industry, the products are also used in the transportation industry, for which Kore products related to furnishing commercial vehicles are processed in addition to basic panel products.”

Annual report 2025A · The company itself

“In accordance with Koskisen’s operational policy, the origin of wood, and consequently its relationship with biodiversity-sensitive areas, is known in all situations. All available information and suppliers’ self-declarations are used to verify the origin of the wood.”

Annual report 2025A · The company itself

“The principles of sustainable procurement and use of renewable natural resources are discussed in the company’s operational policy, environmental principles and principles for wood procurement. In addition to legal requirements, the principles of wood procurement are based on the generally recognised forest management recommendations and the requirements set by the PEFC or FSC chains of custody.”

Annual report 2025A · The company itself

“The Sawn Timber Industry segment’s revenue amounted to EUR 203.9 (139.7) million and EBITDA to EUR 14.3 (7.2) million.”

Annual report 2025A · The company itself

“The products are used in construction, packaging and furniture industries.”

Annual report 2025A · The company itself

“Connecting the district heating networks creates synergies in heat production, reduces the need for fossil-fuel-based backup power and increases renewable electricity production through more stable heat generation.”

Annual report 2025A · The company itself

“From the perspective of renewable energy and energy efficiency, Koskisen is committed to promoting the abandonment of fossil energy sources and raw materials and implementing energy efficiency and energy saving measures in its own production plants. Biofuels are produced from felling waste and by-products of wood processing and used as fuel for Koskisen’s plants and nearby district heating plants.”

Annual report 2025A · The company itself

“Plastic, cardboard and foil packaging as well as base pallets are used as packaging materials.”

Annual report 2025A · The company itself

“The products are used in construction, packaging and furniture industries.”

Annual report 2025A · The company itself

“The transition to a lower-carbon economic system is a macroeconomic megatrend that strongly supports Koskisen’s strategy, as it increases the demand for renewable lowcarbon materials in Koskisen’s customer segments.”

Annual report 2025A · The company itself

“The products are used in construction, packaging and furniture industries.”

Annual report 2025A · The company itself

“They are as follows: 1) We implement biodiversity measures in the forest environment, 2) We reduce CO2 emissions in our own activities and our value chain, 3) We make wise use of wood, down to the last particle of sawdust, 4) We promote a safe work environment, and 5) We support well-being at work and competence development.”

Annual report 2025A · The company itself

“The most significant opportunities in the downstream value chain are the increased use of wood products in construction and as a carbon sink in the medium and long term.”

Annual report 2025A · The company itself

“At the core of the specified strategy are 1) creating value for customers, 2) developing current operations and 3) taking bold steps. Value creation for customers is created through highquality and customised products, customer-oriented services and innovative solutions. The development of current operations is closely linked to strengthening competitiveness and differentiation, product development and the efficient introduction of defined initiatives.”

Annual report 2025A · The company itself

“In the Järvelä sawmill industry, a pilot trial of an electric wheel loader has been implemented together with a contractor. Koskisen’s long-term partner, Adolf Lahti has introduced a fully electric wheel loader to replace a previously used diesel-powered machine.”

Annual report 2025A · The company itself

“The acquisition is a key part of the sustainable growth strategy, under which the Group aims to increase its net sales to EUR 500 million by the end of 2027 through both organic and inorganic growth.”

Annual report 2025A · The company itself

“Koskisen does not tolerate deforestation in its supply chain.”

Annual report 2025A · The company itself

“Start of briquette production Koskisen began producing biofuel briquettes at the briquette plant built in connection with the Järvelä sawmill. At the plant, planer shavings generated as a by-product of sawn timber processing are compressed into briquettes, which are primarily used by heat and power plants. Planer shavings consist of chips and residues generated during the planing of sawn timber.”

Annual report 2025A · The company itself

“Opportunities related to the transition to a low-carbon society – growth in demand for wood construction and wood-based products Financial opportunity Downstream If the construction industry begins to shift away from more emission-intensive concrete structures toward wood construction—driven by changes in customer behaviour or regulatory reforms— demand for Koskisen’s products may increase. This growing demand would likely have a positive impact on cash flows, both for Koskisen and the broader sector, and as future prospects improve, it may also enhance access to financing as well as influence its cost and terms.”

Annual report 2025A · The company itself

“Regulatory risks related to the preservation of carbon sinks (transition risks) – harvesting restrictions Upstream Koskisen’s manufacturing operations (panel and sawmill industries) are highly dependent on wood raw material. EU and national legislation is expected to impose long-term restrictions on harvesting (e.g., to meet the climate targets set out in Finland’s Climate Act). Any disruptions in the availability, price, or quality of wood raw material would likely have a broad impact on operational cash flows and the value of assets.”

Annual report 2025A · The company itself

“Impacts on the extent and condition of ecosystems Regulatory risks related to biodiversity preservation (transition risks) – restrictions on the use of natural resources Upstream Koskisen’s manufacturing operations (panel and sawmill industries) are highly dependent on wood raw material. The decline in biodiversity may lead to regulatory restrictions at the EU or national level regarding the use of natural resources. Disruptions in the availability, price, or quality of wood raw material would likely have broad impacts on the company’s cash flows and asset values.”

Annual report 2025A · The company itself

“Transition risks associated with the circular economy – uncertainty around the legal classification of industrial side streams Own operations The relative difficulty of utilising Koskisen’s side streams (e.g., in particleboards) may increase if future legislation begins to prioritise recycled materials over industrial side streams.”

Annual report 2025A · The company itself

“Regulatory changes at EU and national level in the transition to a fossil-free society affect the requirements for the use of chemicals in production and increase costs.”

Annual report 2025A · The company itself

“EU and national policy changes can significantly limit the supply of wood and lead to a decrease in production volumes. Tighter regulation of carbon dioxide emissions will increase costs throughout the value chain.”

Annual report 2025A · The company itself

“The transition to a lower-carbon economic system is a macroeconomic megatrend that strongly supports Koskisen’s strategy, as it increases the demand for renewable lowcarbon materials in Koskisen’s customer segments.”

Annual report 2025A · The company itself

“Key assumptions used in the analysis: • Regulation of biodiversity issues will become stricter, particularly regarding the expansion of protected areas and restrictions on the use of raw materials. The impacts of the EU Biodiversity Strategy for 2030 are estimated to increase costs and require new operating models in the value chain. • The negative impacts of climate change on forests will increase.”

Annual report 2025A · The company itself

“Transition plan for climate change mitigation E1-1 Koskisen has started to prepare a transition plan for climate change mitigation and planned to deploy it by the end of 2025. However, the deployment and its disclosure will be postponed to 2026.”

Annual report 2025A · The company itself

“In the short term (1 year), Koskisen may invest in energy efficiency and renewable energy, improving its ability to adapt quickly to rising energy prices and potential energy supply disruptions.”

Annual report 2025A · The company itself

“Rising prices of fossil fuels and energy, as well as taxes and fees related to these, directly increase operational costs. The high price of biofuels also affects operational costs.”

Annual report 2025A · The company itself

“The increase in the production volumes of low-carbon products increases absolute energy consumption, but correspondingly, relative energy efficiency improves, enabled by existing and future technology investments. Most of the energy used by Koskisen is based on the use of renewable wood-based fuel generated as a side stream of its own production.”

Annual report 2025A · The company itself

“At the same time, the company faces challenges related to financing, as the availability of financing can decline and its price increase.”

Annual report 2025A · The company itself

“The interest rates of the loans are tied to the six-month Euribor rate, and they also have a margin, the level of which depends on the ratio of net debt to EBITDA. In addition, the company agreed on a fixed term-loan of EUR 12.0 million during the past quarter. The financing is allocated to investments to increase capacity in the Sawn Timber Industry and Panel Industry segments.”

Annual report 2025A · The company itself

“Actions related to the negative and positive impacts of climate change mitigation and adaptation, as well as related financial risks At the Järvelä panel industry site, a phenolic adhesive in which 10% of the raw material has been replaced with lignin was partially introduced in spring. The use of the adhesive reduces the share of fossil-based raw materials and has been used since spring in approximately half of the plywood production in Järvelä.”

Annual report 2025A · The company itself

“In addition to wood, adhesives and coatings are used as raw materials in panel products, and plastic and metal parts are also used in Kore products.”

Annual report 2025A · The company itself

“In addition to wood, adhesives and coatings are used as raw materials in panel products, and plastic and metal parts are also used in Kore products.”

Annual report 2025A · The company itself

“Plastic, cardboard and foil packaging as well as base pallets are used as packaging materials.”

Annual report 2025A · The company itself

“Koskisen expects sustainability, urbanisation and the development of trade and transport to support the growth of demand for sustainable wood-based materials and products.”

Annual report 2025A · The company itself

“Koskisen expects sustainability, urbanisation and the development of trade and transport to support the growth of demand for sustainable wood-based materials and products.”

Annual report 2025A · The company itself

“Koskisen expects sustainability, urbanisation and the development of trade and transport to support the growth of demand for sustainable wood-based materials and products.”

Annual report 2025A · The company itself

“In addition, water, machinery and supplies are consumed as commodities in production.”

Annual report 2025A · The company itself

“Koskisen’s position as a significant industrial employer in the surrounding area Positive impact All time horizons Own operations Koskisen is one of the largest employers in the Päijät-Häme region, creating/supporting the wellbeing and purchasing power of employees living in nearby areas. In addition, the work generates tax revenue, which in turn supports not only the residents and livelihoods of the local area, but also the well-being of employees and their close friends.”

Annual report 2025A · The company itself

“The calculation covers Koskisen’s operating countries, Finland and Poland. The operations of the Iisvesi sawmill were included in the calculation as a new entry in 2025.”

Annual report 2025A · The company itself

“Koskisen’s material positive impacts relate to employment and the economic wellbeing of surrounding regions as well as the active promotion of occupational wellbeing and health.”

Annual report 2025A · The company itself

“The calculation covers Koskisen’s operating countries, Finland and Poland. The operations of the Iisvesi sawmill were included in the calculation as a new entry in 2025.”

Annual report 2025A · The company itself

“The positive impacts concern the commuting areas surrounding Koskisen’s locations in Finland and Poland.”

Annual report 2025A · The company itself

“The positive impacts concern the commuting areas surrounding Koskisen’s locations in Finland and Poland.”

Annual report 2025A · The company itself

“In addition to wood, adhesives and coatings are used as raw materials in panel products, and plastic and metal parts are also used in Kore products.”

Annual report 2025A · The company itself