9845000D85046ECFFF27-2025-12-31-en

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 2

Table of Contents


Report of the Board of Directors ..................................	4
Sustainability Statement ........................................................	19
General disclosures ...............................................................	20
Environmental information ................................................	59
Social information ..................................................................	98
Governance information .....................................................	114


Consolidated Financial Statements (IFRS) ..............	120
Consolidated statement of comprehensive income ....	120
Consolidated balance sheet ..................................................	121
Consolidated statement of changes in equity ...............	122
Consolidated statement of cash flows ..............................	124


Notes to the Consolidated Financial Statements .	125
1. General information and basis of preparation ............	125
2. Segment information and revenue ................................	128
3. Financial risk and capital management .......................	130
4. Other operating income ....................................................	135
5. Materials and services .........................................................	135
6. Employee benefit expenses ..............................................	136


7. Share-based incentive plans .............................................	137
8. Depreciation, amortisation and impairment ..............	140
9. Other operating expenses .................................................	140
10. Finance income and costs ...............................................	141
11. Income tax ..............................................................................	142
12. Property, plant and equipment ......................................	146
13. Forest assets ..........................................................................	149
14. Leases ......................................................................................	149
15. Intangible assets ..................................................................	152
16. Inventories .............................................................................	153
17. Other receivables .................................................................	154
18. Assets held for sale ..............................................................	154
19. Equity .......................................................................................	155
20. Earnings per share .............................................................	156
21. Financial assets and liabilities .........................................	157
22. Provisions ...............................................................................	161
23. Other payables .....................................................................	162
24. Group structure ...................................................................	162
25. Related party transactions ..............................................	164


26. Contingent liabilities and commitments ...................	165
27. Events after the financial period ...................................	165


Parent company’s Financial Statements (FAS) ....	166
Income statement ...................................................................	166
Balance sheet ............................................................................	167
Statement of cash flows ........................................................	169
Notes to the financial statements of parent company .....................................................................................	170


Signatures of the Report of the Board of Directors and Financial Statements ......................................................	181
Auditor’s Report ........................................................................	182
Assurance Report on the Sustainability Statement ...	187
Independent auditor's report on the ESEF financial statements of Koskisen Oyj ..................................................	189
Information for investors ........................................................	191

Report of the Board

of Directors and

Sustainability

Statement

This section presents Koskisen’s

Report of the Board of Directors 2025

and a report about Koskisen Group’s

material sustainability topics.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 4

Report of the

Board of Directors

Koskisen is an international wood processing specialist

and known for its agility and ability to listen to the

customer. The main raw material used by Koskisen in its

production is wood, which Koskisen processes into sawn

timber, plywood and chipboard, among other products.

Valuable wood raw material is used as thoroughly as

possible, up to the last particle of sawdust.

Koskisen has two business segments: Sawn Timber Industry and

Panel Industry. Sawn Timber Industry produces sawn and processed

timber, while Panel Industry produces birch plywood, thin plywood,

veneer, chipboard and interior solutions for light and heavy-duty

commercial vehicles under the Kore brand.

Koskisen’s wood procurement function is part of the Sawn Timber

Industry segment. It is responsible for procuring wood for Koskisen’s

”

Koskisen’s ability to

create value is based

on a material-efficient

and integrated value

chain from the forest

to the end product.

own production plants, delivering side streams from Koskisen’s own

production for bioenergy production at Koskisen’s production plants

and several other power plants in the vicinity, as well as supplying raw

material (chips and pulpwood) to paper and pulp manufacturers.

Koskisen’s production plants are located in Järvelä and Hirvensalmi,

Finland, as well as in Toporów and Skwierzyna, Poland.

The company’s shares have been listed on Nasdaq Helsinki’s main list

as of 1 December 2022.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 5

Result and financial position

Consolidated revenue increased in January–December

and amounted to EUR 354.9 (282.3) million. The growth

in revenue was mainly due to the Sawn Timber Industry

segment's improved delivery volumes and slightly

higher end product selling prices when compared to

the reference period.

Adjusted EBITDA improved to EUR 28.9 (24.3)

million.The improvement in EBITDA was mainly

attributable to increased delivery volumes in the Sawn

Timber Industry segment and slightly higher prices of

end products.

Operating profit came to EUR 14.3 (13.0) million.

Depreciation, amortisation and impairment amounted

to EUR -14.5 (-11.2) million. Profit before income tax

amounted to EUR 10.7 (10.0) million and income tax for

the period to EUR -2.1 (-1.7) million. The profit for the

financial period came to EUR 8.6 (8.3) million and

earnings per share were EUR 0.37 (0.36).

Segments

The Sawn Timber Industry segment’s revenue

amounted to EUR 203.9 (139.7) million and EBITDA to

EUR 14.3 (7.2) million. The Panel Industry segment’s

revenue amounted to EUR 150.9 (142.4) million and

EBITDA to EUR 15.7 (17.7) million.

Balance sheet, cash flow and financing

At the end of the accounting period, Koskisen’s equity rAt

the end of the review period, Koskisen’s equity ratio was

50.9 (54.0) per cent, and gearing was 26.3 (15.4) per cent.

Cash flow from operating activities amounted to EUR

19.7 (14.0) million in January–December. The effect of the

change in working capital was EUR -3.2(-10.5) million. The

most significant items in the change in working capital

were the increase in trade receivables and inventories,

both reflecting the increased volumes of the sawmill.

Trade and other payables also increased due to the

increased wood procurement volumes. Cash flow from

financing activities amounted to EUR 8.0 (-17.7) million,

in which the renewal of the financing agreement and

the withdrawal of the term loan are seen as a positive

cash flow. Cash flow from investing activities amounted

to EUR -35.1 (-0.2) million, of which the most significant

item is the cash portion of the purchase price of Iisveden

Metsä’s business operations, EUR 15.0 million.

Interest-bearing liabilities at the end of the period

amounted to EUR 79.0 (66.3) million. Of the interest-

bearing liabilities, EUR 30.9 (33.5) million are lease

liabilities and EUR 48.2 (32.8) million are loans from

financial institutions. Liquid assets amounted to EUR

36.1 (43.3) million. Liquid assets were reduced by the

EUR 15.0 million cash payment share of the acquisition

of Iisveden Metsä. Interest-bearing net liabilities

amounted to EUR 42.9 (22.9) million.

Koskisen’s liquidity has remained strong. At the end of

the review period, available liquidity amounted to EUR

36.1 (43.3) million, comprising cash and cash equivalents

of EUR 24.4 (31.8) million and current financial assets at

fair value through profit or loss in the amount of EUR

11.7 (11.5) million, the most significant of which was a

capital redemption contract. In addition, the company

has an unused account limit of EUR 15.0 million, of

which EUR 0.1 million has been allocated to guarantees

at the balance sheet date and was otherwise unused.

In October, Koskisen renewed its financing agreement,

which had been concluded in 2022 and consisted of

three parts: an initially fixed-term loan of EUR 19.0

million, a fixed-term loan of EUR 10.0 million and a

credit facility of EUR 8.0 million, aimed at financing the

Group’s working capital. These loans were replaced by a

fixed-term loan of EUR 23.0 million and a credit facility

of EUR 15.0 million. The new loan was used to repay the

old fixed-term loans, of which a total of EUR 13.0 million

remained. The credit facility was not in use when the

new loan was drawn down.

The financing agreement is valid for five years until

2030. The loan agreement includes standard financing

covenants and default terms. The new loan is

unsecured. The financing covenants are measured

quarterly on a rolling 12-month basis and are calculated

based on Koskisen's consolidated financial information.

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.

The loan has a term of seven years and will mature at

the end of 2032. The loan is unsecured and includes

similar covenants as the financing agreement

mentioned above.

The parent company has granted two loans to a group

company. The total amount of the loans was EUR

3,456,132 as of 31 December 2025 (31 December 2024:

EUR 716,000). The loans are repaid in equal instalments

and interest is paid semi-annually. The interest rate of

the loan in Polish zloty is tied to the three-month

WIBOR and the interest rate of the loan in euro is tied

to the three-month Euribor, the margins are variable.

The loans are unsecured.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 6


EUR million	2025	2024	2023
Revenue	354.9	282.3	271.3
EBITDA	28.8	24.2	33
EBITDA margin, %	8.1	8.6	12.2
Adjusted EBITDA	28.9	24.3	33.1
Adjusted EBITDA margin, %	8.1	8.6	12.2
Operating profit (EBIT)	14.3	13.0	24.4
Operating profit (EBIT) margin, %	4	4.6	9.0
Profit for the period	8.6	8.3	20.2
Basic earnings per share, EUR	0.37	0.36	0.88
Diluted earnings per share, EUR	0.36	0.36	0.87
Gross investments	42.1	32.9	32.1
Equity per share, EUR	6.8	6.5	6.4
Return on capital employed (ROCE), %	6.2	6.1	12.1
Working capital, end of period	57.8	45.9	37.9
Net cash flow from operating activities	19.7	14	14.9
Equity ratio, %	50.9	54	54.8
Gearing, %	26.3	15.4	-1.8

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 7

Investments

Gross investments in January-December amounted to

EUR 42.1 (32.9) million. Of these, EUR 21.0 million were

related to assets acquired from Iisveden Metsä in the

business acquisition. Other investments were

associated with, among others, the new log yard, which

was commissioned in the first quarter, the sawmill’s

new channel dryers and the briquette plant which was

commissioned in the fourth quarter. In addition, the

increases include investments related to the Panel

Industry’s investment programme.

New log yard

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.

Channel kilns at the sawmill

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. The

new channel kilns are scheduled for completion in

summer 2026.

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.

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.

Creating new wood-based products and thereby

increasing the value-added rate is a key part of

Koskisen’s strategy.

First phase of the Panel Industry investment

programme

The equipment installations of the first phase of the

Panel Industry investment programme were

commissioned for production use at the end of 2025. In

the first phase, investments focused, among other

things, on the automation and modernisation of drying,

coating, and filling processes. The total value of the first-

phase investments was approximately EUR 12 million.

Acquisition of Iisveden Metsä’s

business operations

The acquisition of the business operations of Iisveden

Metsä was completed in early June. 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.

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. Iisveden Metsä’s wood

procurement area is highly favourable for birch

sourcing, which provides excellent support for the

growth of the Panel Industry.

The integration of Iisveden Metsä progressed as

planned. Key production control and financial systems

were integrated during the third quarter. Work to

harmonise operating methods and processes is

ongoing.

Value creation

Koskisen’s ability to create value is based on a material-

efficient 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.

Koskisen’s integrated operating model is based on

interlinked processes, which form the basis of Koskisen’s

business from the forest through production to finished

products. Koskisen’s entire value chain, from harvesting

to final products, is designed around synergetic material

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 8

flows and an agile operating model, which enables the

use of raw materials from different sources.

In Koskisen’s integrated operating model, wood

procurement procures the raw materials that are

delivered to Koskisen’s production facilities for

processing. The by-products generated early in the

production process, such as bark, are used for heat

production of the production plant processes. The by-

products 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. Koskisen is the only mechanical wood

product industry company in Finland with the level of

integration described above.

Koskisen’s key intangible assets include the company’s

brand and reputation, its skilled and committed

personnel, a synergistic operating model that enables

resource efficiency, and strategic partnerships. These

resources provide Koskisen with a competitive

advantage and are a central part of the

company’s strategy.

Strategy

Koskisen’s strategic growth paths and related

measures has been defined for the strategy period

2024–2027. 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 high-

quality 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. Bold steps, on the other hand, include

investments and possible acquisitions.

The clarified strategy will support the growth leap by

the end of 2027 pursued by Koskisen, which was set

earlier. The completed comprehensive strategy work

provides the company with a clear direction for

implementing this sustainable growth.

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. 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.

Growth in both businesses, Sawn Timber Industry and

Panel Industry, will be generated primarily through

volume increase, new wood-based products and

expanding customer relationships. Naturally, the

company will invest in the continuous development of

its own operations.

Financial objectives

Koskisen’s Board of Directors has confirmed the

following long-term financial targets extending over the

business cycle, which the company aims to achieve by

the end of 2027.

FINANCIAL TARGETS THE COMPANY AIMS TO

ACHIEVE BY THE END OF 2027

Growth: revenue of EUR 500 million including

both organic and inorganic growth

Profitability: adjusted EBITDA margin

averaging 15 per cent over the cycle

Balance sheet: maintaining a strong

balance sheet

Dividend policy: attractive dividend of at least

one-third of the net profit each year

Key sustainability objectives

Koskisen has a sustainability programme, and its key

sustainability objectives to be achieved by 2027 are

incorporated into the strategy. 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.

More sustainable development goals have been defined

in the sustainability programme. The achievement of

the targets will be monitored through the indicators set

for them.

Personnel

The Koskisen Group had an average of 994 (919)

employees in January–December 2025. The number of

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 9

employees was 943 (883) at the beginning of 2025 and

1,014 (943) at the end of December. The number of

employees was increased by the acquisition of the

business operations of Iisveden Metsä at the beginning

of June. As a result of the acquisition, approximately 50

persons joined Koskisen as existing employees under

their previous terms of employment.

Wages and salaries, share-based payments and

seniority allowances paid to personnel in 2025 totalled

EUR 45.2 (39.9) million.

Incentive plans for the management and key

personnel

Koskisen has a long term share-based incentive

programme 2022–2026 and 2025–2029 for its key

employees. The purpose of the incentive programme is

to align the objectives of the company’s shareholders

and persons participating in the programme in order to

increase the value of the company in the long term,

commit the participants to the company and offer

them a competitive incentive programme for earning

and accumulating shares.

The 2022–2026 incentive programme consists of three

three-year earning periods, namely 2022–2024, 2023–

2025 and 2024–2026. The 2025–2029 incentive

programme consists of three three-year earning

periods, namely 2025–2027, 2026–2028 and 2027–2029.

The Company’s Board of Directors determines the key

persons eligible for the incentive programme for each

earning period, as well as the earning criteria and

objectives, which may be based on financial

performance, strategy or other objectives. Additional

information on the incentive plans is provided in Note 7

to the Consolidated Financial Statements: Share-based

incentive plans.

Remuneration Report

Koskisen’s Remuneration Report 2025 will be

published as a separate report from the Report of

the Board of Directors.

Research and development

Koskisen’s main product groups include sawn and

processed timber in the Sawn Timber business and birch

plywood, thin plywood, veneer, chipboard and interior

solutions for light and heavy-duty commercial vehicles

under the Kore brand in the Panel Industry business.

Koskisen’s product development aims to improve the

functionality and properties of products in accordance

with the principles of responsible and sustainable

development and focuses on material efficiency,

recyclability and fossil-free raw materials. Koskisen’s

product development focuses on improving long-term

use, renewability and safety, as well as on developing

new products.

The Group’s research and development expenditure

amounted to EUR 0.1 (0.3) million, or 0.0 (0.1) per cent

of revenue.

Risks and uncertainties and

their management

The Group’s most significant short-term risks are

related to the availability of raw materials and the

management of price changes, recently intensified risks

in the general geopolitical, security and trade policy

situation, regulatory changes, the general weakening of

the market situation and its effect on market demand,

the solvency of customers and the purchasing power of

consumers, the delivery capability of suppliers and

service providers, the seasonality of operations, and

changes in business areas and customer relationships.

At present, there are uncertainties particularly related

to the import tariffs imposed by the United States.

Koskisen does not have significant sales in the US

market, so the direct impacts of customs and trade

policy are minor. The indirect impacts of US tariff and

customs policy on trade flows in the sawmill industry, in

particular, are difficult to assess. In addition to impacts

on trade flows, there may also be impacts on the supply

of, and demand for, products. The tariff and trade policy

pursued by the United States may have significant

impacts on inflation, economic growth, interest rates

and exchange rates in Koskisen’s key markets.

The most significant risks related to

Koskisen’s operations

The following table provides a summary of the most

significant risks related to Koskisen’s operations.

Together or separately, the risks may have a positive or

negative impact on Koskisen’s operations, performance,

financial position, competitiveness and reputation. The

risks are presented in a random order in the table.

Sustainability-related impacts and risks are described in

the sustainability statement.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 10

RISKS RELATED TO KOSKISEN’S OPERATING ENVIRONMENT


Description of the risk	Risk management and factors that mitigate uncertainty
Koskisen operates in cyclical sawmill and panel industry markets, and the uncertainty and unfavourable development of the economic situation, regulatory changes, negative changes in the general geopolitical, security and trade policy situation may reduce the demand for Koskisen’s products or the profitability of its operations, which may have an adverse effect on Koskisen’s business operations, operating result and financial position.	Koskisen has two business segments with partially countercyclical markets. This softens the impact of cyclicality at the Group level. Koskisen operates in several markets and its customers represent several end-use segments with different demand drivers. Koskisen actively monitors changes in its operating environment in order to adapt its operations as agilely as possible.
Fluctuations in wood prices, disturbances in wood supply, possible regulatory changes and different impacts on the availability of wood may cause significant costs, disturbances in production and adversely affect Koskisen’s profitability.	Koskisen has an extensive and professional wood procurement organisation with decades of experience in the industry. Wood procurement aims to proactively react to potential risks related to wood raw material.
The effects of general cost inflation on production costs and thus Koskisen’s profitability.	The procurement organisation closely monitors the development of production costs and engages in close dialogue with production and sales regarding the possible impact of costs on the pricing of final products. In accordance with its hedging policy, Koskisen uses hedging instruments to control key production factors, such as electricity price fluctuations.
Any pandemics or epidemics can disrupt Koskisen’s operations and result in significant costs.	Koskisen aims to prevent and, if necessary, minimise the impact of any pandemics or epidemics on the health and safety of personnel and ensure undisturbed supply chain with various exceptional arrangements, such as the use of different types of protective equipment, restrictions on group sizes or by introducing alternative operating models..

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 11

RISKS RELATED TO KOSKISEN’S BUSINESS


Description of the risk	Risk management and factors that mitigate uncertainty
Significant disruptions or interruptions in Koskisen’s production or deliveries, damage to, destruction or closure of Koskisen’s production facilities would materially impair Koskisen’s ability to deliver its products to customers and would have an adverse effect on its business operations and operating result.	Koskisen manages its integrated order-to-delivery chain taking risk factors into account. Koskisen has prepared for any disruptions in production and business caused by accidents through comprehensive insurance policies.
Koskisen may lose significant customers, which may have a material adverse effect on Koskisen’s business operations and profitability.	Koskisen’s customer base is geographically diversified and spread over different industries. There are no individual customers in the customer base whose share of revenue would be significant.
Koskisen’s business operations involve risks related to environmental pollution and environmental damage.	Koskisen’s production operations require a valid environmental permit. Koskisen monitors, supervises and reports the environmental impacts of its operations systematically. Koskisen has quality, environmental and safety management certificates audited annually by a third party. Other environmental risks are described in the sustainability statement.
Koskisen’s business operations involve safety and health risks, such as accident and damage risks, which, if realised, could lead to Koskisen’s obligation to compensate for damages and delay or interfere with the delivery of Koskisen’s products and services.	Koskisen has comprehensive insurance policies in case of accidents and damage. The need for insurance is assessed annually and whenever necessary due to particular changed circumstance. Koskisen carries out systematic safety work and invests in modern safety equipment to minimise risks.
Failure to recruit competent management or personnel or loss of key personnel could have a materially detrimental effect on Koskisen’s ability to conduct its business.	Koskisen manages risk, for example by offering interesting work assignments, competitive reward, investments in personnel development and training. In addition, annual personnel surveys are used to survey the work community’s well-being, motivation and related development needs.
Difficulties in maintaining and updating IT infrastructure, shortcomings in IT systems and external cyber-attacks related to IT systems may have a detrimental effect on Koskisen.	Koskisen is prepared for increased cybercrime and information system disruptions. The purpose of systematic monitoring and the placement of critical systems in cloud services is to ensure that the company is able to react quickly and has the best expertise in the event of an incident.
The weakening of Koskisen’s reputation could affect its business operations.	The Code of Conduct is the foundation of Koskisen’s business operations. The company’s Code of Ethics guide to operating honestly, transparently, lawfully and ethically with all stakeholders.
Industrial action, such as strikes, can disrupt Koskisen’s business operations.	Koskisen respects the freedom of association. Koskisen maintains an open and active dialogue with different labour market parties.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 12

RISKS RELATED TO THE FINANCIAL POSITION AND FINANCING


Description of the risk	Risk management and factors that mitigate uncertainty
The covenants included in Koskisen’s financing agreements may limit Koskisen’s business operations and financial flexibility, and Koskisen may have difficulties in complying with the terms of its financing agreements, which may lead to the financing agreements falling prematurely due or increased costs.	Koskisen takes care of its solvency, sufficient and functional funding relationships and the structure of financing. Koskisen actively and proactively monitors the development of its solvency and financial position. The management of financial risks is discussed in more detail in Note 3 to the financial statements.
Exchange rate fluctuations may have a material adverse effect on Koskisen.	Koskisen uses currency hedging instruments in accordance with the hedging policy approved by the Board of Directors.
Credit losses may have a detrimental effect on the operating result of Koskisen.	In accordance with its policy, Koskisen has comprehensive credit risk insurance policies and well-functioning risk management processes.

Governance

Composition of the Board of Directors

On 31 December 2025, Koskisen Corporation’s Board of

Directors had the following six members: Pekka

Kuusniemi (Chair of the Board of Directors), Hanna

Sievinen (Vice Chair of the Board of Directors), Carita

Himberg, Karri Koskela, Hanna Masala ja Kalle Reponen.

Corporate Governance Statement

Koskisen Corporation’s Corporate Governance

Statement 2025 will be published as a separate

statement from the Report of the Board of Directors.

Shares and ownership

Koskisen’s share capital amounts to EUR 1,512,000. On 31

December 2025, the total number of issued shares was

24,095,535 and the total number of outstanding shares

was 24,094,449. The company has one series of shares.

One share carries one vote at the general meeting. The

shares have no nominal value. The company’s shares

have been listed on Nasdaq Helsinki Oy as of

1 December 2022.

On 21 March 2025, Koskisen Corporation's Board of

Directors decided on a free directed share issue for the

payment of share rewards under the company's long-

term performance-based incentive programme for

2022–2026 (earning period 2022–2024). A total of 70,376

new shares were issued free of charge in the directed

share issue to seven persons covered by the incentive

programme in accordance with the terms of the

programme. The rewards to be paid under the

incentive programme to each participating person

were paid in shares and cash. The cash component

covers the tax costs related to the shares. The total

number of shares in Koskisen Corporation after the

registration of new shares is 23,095,535 shares. The new

shares issued, totalling 70,376 shares, were registered in

the Trade Register on 4 April 2025. Koskisen

Corporation's Board of Directors decided on the free

directed share issue on the basis of an authorisation

granted by the Annual General Meeting on 16 May 2024.

The purchase price of the Iisveden Metsä business

acquisition was partly paid through a directed share

issue of Koskisen shares. The Board of Directors of

Koskisen resolved on a directed share issue of 1,000,000

new Koskisen shares to Iisveden Metsä on the basis of

the authorisation given by the Annual General Meeting

on 15 May 2025. After the completion of the share issue,

the total number of Koskisen shares is 24,095,535

shares.

Treasury shares

On 31 December 2025, the company held 1,086 treasury

shares, which was 0.005 per cent of the total number of

shares.

Share price and turnover

A total of 619,176 of the company’s shares were traded

on the Helsinki Stock Exchange between 1 January and

31 December 2025, corresponding to 2.6 per cent of the

total number of shares. The highest share price was

EUR 9.56 and the lowest EUR 6.40. The volume

weighted average price of the shares traded was EUR

7.96. The share turnover was EUR 4,936,953. At the end

of the review period, the market capitalisation of the

company was EUR 219,269,369.

Authorisations of the Board of Directors

On 15 May 2025, the Annual General Meeting authorised

the Board of Directors to resolve on the repurchase of

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 13

the company’s own shares. Under the authorisation, the

Board of Directors may resolve on the repurchase of a

maximum of 1,000,000 of the company’s own shares.

The repurchase authorisation is valid until 30 June 2026,

and it revokes all previous repurchase authorisations

concerning the company’s own shares.

On 15 May 2025, the Annual General Meeting authorised

the Board of Directors to resolve on issuing new shares

and/or transferring treasury shares held by the

company and/or issuing option rights and other special

rights referred to in chapter 10, section 1 of the Limited

Liability Companies Act. Under the authorisation, a

maximum of 2,000,000 new shares may be issued and/

or treasury shares held by the company or its group

company may be transferred. The maximum number of

shares issued in connection with incentive programmes

is 215,000. The authorization shall revoke all earlier

authorizations regarding share issue and issuance of

special rights entitling to shares. The Board of Directors

shall decide on all other terms and conditions related to

the authorization. The authorization shall be valid until

30 June 2026.

Flagging notifications

Koskisen Corporation did not receive any flagging

notifications in 2025.

Estimate of probable development

Koskisen Group’s revenue for 2026 is expected to

increase from the level of 2025. The adjusted EBITDA

margin is expected to be 8–12 per cent.

Board of Directors’ proposal for the

distribution of profits

On 31 December 2025, the parent company’s

distributable funds were EUR 120,840,065.53, of which

the profit for the financial period constitutes

EUR 186,509.25.

The Board of Directors proposes to the Annual General

Meeting that a dividend of EUR 0.14 be paid for each

outstanding share for the financial year 2025. Based on

the number of shares registered on 26 March 2026, the

total dividend would be EUR 3,373,222.86. The

remaining part of the distributable funds will be left in

unrestricted equity.

The Board of Directors has assessed the company’s

financial situation and liquidity before making the

proposal. The company’s financial position has not

changed significantly since 31 December 2025, the

company’s liquidity is still good and the proposed

dividend will not compromise the company’s solvency.

Events after the financial period

Koskisen announced on 6 February 2026 the proposals

of Koskisen Corporation’s Shareholders’ Nomination

Board to the Annual General Meeting 2026.

Koskisen announced on 10 February 2026 that the

company has on 9 February 2026 received an

announcement under Chapter 9, Section 5 of the

Securities Markets Act, according to which the total

holdings of shares and voices of Varma Mutual Pension

Insurance Company in Koskisen Corporation has

crossed above the 5 per cent threshold. According to

the notification, on 9 February 2026, Varma Mutual

Pension Insurance Company holds in total 2,001,752

shares in Koskisen Corporation, which corresponds to

8.31 per cent of all shares and votes in Koskisen

Corporation.

Koskisen announced on 13 February 2026, that the

Board of Directors has resolved on the criteria and

targets as well as the key employees eligible for the

earning period 2026–2028 of a share-based incentive

programme.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 14

Shares and shareholders

MAJOR SHAREHOLDERS ON 31 Dec 2025


	Number of shares	% of shares
Kari Koskinen	4,038,988	16.76
Markku Koskinen	3,729,988	15.48
Eva Wathén	2,148,988	8.92
Laura Paksuniemi	1,314,693	5.46
Ella Paksuniemi	1,292,993	5.37
Ester Paksuniemi	1,290,693	5.36
Varma Mutual Pension Insurance Company	1,179,332	4.89
Iisveden Metsä Oy	1,000,000	4.15
Karoliina Koskinen	922,039	3.83
Lasse Koskinen	922,039	3.83
Pekka Kopra	822,420	3.41
Elo Mutual Pension Insurance Company	814,332	3.38
Stephen Industries Inc Oy	498,599	2.07
Ilmarinen Mutual Pension Insurance Company	485,000	2.01
Juha Koskinen	475,131	1.97
Arto Koskinen	475,130	1.97
Riitta Kokko-Parikka	375,130	1.56
Työeläkeyhtiö Veritas	143,151	0.59
Thominvest Oy	120,000	0.50
Skandinaviska Enskilda Banken AB (publ) Helsinki branch	102,814	0.43
20 largest, total	22,151,460	91.93

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 15

BREAKDOWN OF SHAREHOLDING BY SCALE ON 31 Dec 2025


Lower limit	Upper limit	Number of shareholders	Share of shareholders, %	Total number of shares	% of shares
1	100	2,843	55.3	147,897	0.6
101	500	1,752	34.1	381,003	1.6
501	1,000	282	5.5	219,635	0.9
1,001	5,000	206	4.0	406,288	1.7
5,001	10,000	17	0.3	123,734	0.5
10,001	50,000	22	0.4	445,540	1.8
50,001	100,000	3	0.1	219,978	0.9
100,001	500,000	8	0.2	2,674,955	11.1
500,001		12	0.2	19,476,505	80.8
Total		5,145	100	24,095,535	100

OWNERSHIP STRUCTURE BY SECTOR 31 Dec 2025


	Number of shares	% of shares
Companies	1,795,516	7.5
Financial and insurance institutions	182,427	0.8
Public sector	2,621,815	10.9
Households	19,269,518	80.0
Non-profit organisations	43,193	0.2
Foreign shareholders	2,367	0.0
Total	23,914,836	99.3
Nominee-registered	180,699	0.8
All in total	24,095,535	100

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 16

Calculation formulas for key figures

Items affecting comparability are unusual material items outside the ordinary course of

business that relate to (i) costs related to reorganisations, (ii) impairment charges, (iii)

the gain or loss from the sale of businesses or significant fixed assets and (iv) costs

related to the Listing. Items affecting comparability is presented to reflect the

underlying business performance of Koskisen and to enhance comparability between

periods. Koskisen believes that items affecting comparability provide meaningful

supplemental information by excluding items outside the ordinary course of business

that reduce comparability between periods.


Key figure	Definition		Reason for use
EBITDA	Operating profit (loss) + Depreciation, amortisation and impairments		EBITDA is an indicator used to measure Koskisen’s performance.
EBITDA margin, %	EBITDA	x 100	EBITDA margin is an indicator used to measure Koskisen’s performance.
EBITDA margin, %	Revenue	x 100
Adjusted EBITDA	EBITDA + Items affecting comparability		Adjusted EBITDA is an indicator used to measure Koskisen’s performance. Adjusted EBITDA is presented in addition to EBITDA to reflect the underlying business performance and to enhance comparability between periods. Koskisen believes that adjusted EBITDA provides meaningful supplemental information by excluding items outside the ordinary course of business that reduce comparability between periods.
Adjusted EBITDA margin, %	Adjusted EBITDA	x 100	Adjusted EBITDA margin is an indicator used to measure Koskisen’s performance. Adjusted EBITDA margin is presented in addition to EBITDA margin to reflect the underlying business performance and to enhance comparability between periods. Koskisen believes that adjusted EBITDA margin provides meaningful supplemental information by excluding items outside the ordinary course of business that reduce comparability between periods.
Adjusted EBITDA margin, %	Revenue	x 100
EBIT margin, %	Operating profit (loss)	x 100	EBIT margin is an indicator used to measure Koskisen’s performance.
EBIT margin, %	Revenue	x 100
Adjusted EBIT	Operating profit (loss) + Items affecting comparability		Adjusted EBIT is an indicator used to measure Koskisen’s performance. Adjusted EBIT is presented in addition to operating profit (loss) to reflect the underlying business performance and to enhance comparability between periods. Koskisen believes that adjusted EBIT provides meaningful supplemental information by excluding items outside the ordinary course of business that reduce comparability between periods.
Adjusted EBIT margin, %	Adjusted EBIT	x 100	Adjusted EBIT margin is an indicator used to measure Koskisen’s performance. Adjusted EBIT margin is presented in addition to EBIT margin to reflect the underlying business performance and to enhance comparability between periods. Koskisen believes that adjusted EBIT margin provides meaningful supplemental information by excluding items outside the ordinary course of business that reduce comparability between periods.
Adjusted EBIT margin, %	Revenue	x 100

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 17


Key figure	Definition		Reason for use
Basic Earnings per Share, EUR	Profit (loss) for the period attributable to owners of the parent company		Basic Earnings per Share reflects the distribution of Koskisen’s results to its shareholders.
Basic Earnings per Share, EUR	Weighted average number of ordinary Shares outstanding during the period
Diluted Earnings per Share, EUR	Profit (loss) for the period attributable to owners of the parent company		Diluted Earnings per Share reflects the distribution of Koskisen’s results to its shareholders.
Diluted Earnings per Share, EUR	Weighted average number of ordinary Shares outstanding during the period + Weighted average number of all dilutive instruments potentially to be converted into Shares
Capital employed	Total assets - Current liabilities		Capital employed reflects the capital tied to Koskisen’s operations and it is used to calculate return on capital employed.
Liquid assets	Current financial assets at fair value through profit or loss + Deposits + Cash and cash equivalents		Liquid assets reflects the amount of cash and other assets that are readily convertible to cash.
Net debt	Borrowings + Lease liabilities - Liquid assets		Net debt is an indicator used to assess Koskisen’s total external debt financing.
Net debt/EBITDA, ratio	Net debt	x 100	Net debt/EBITDA is an indicator used to assess the level of Koskisen’s financial risk and the level of Koskisen’s indebtedness.
Net debt/EBITDA, ratio	EBITDA (last 12 months)	x 100
Working capital	Inventories + Trade receivables + Other receivables - Advances received - Trade payables - Trade payables, payment system		Working capital is an indicator used to monitor the level of direct net working capital tied to Koskisen’s operations.
Equity ratio, %	Total equity	x 100	Equity ratio measures Koskisen’s solvency and ability to meet its liabilities in the long term.
Equity ratio, %	Total assets - Advances received	x 100
Gearing, %	Net debt	x 100	Gearing is a measure used to assess Koskisen’s financial leverage.
	Total equity	x 100
Return on capital employed, %	Operating profit (loss) (last 12 months)	x 100	Return on capital employed reflects the return of capital tied to Koskisen’s operations.
Return on capital employed, %	Capital employed (average for the last 12 months)	x 100
Gross investments	Investments in property, plant and equipment, forest assets, right-of-use assets and intangible assets.		Gross investments are a measure of capitalised investments in Koskisen’s operating business.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 18

Reconciliation of alternative performance measures

The following table sets forth a reconciliation of the Alternative Performance Measures

as at the dates and for the periods indicated:


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Items affecting comparability
Income related to reorganisations	-662	-
Costs related to reorganisations	902	154
The gain (-) or loss (+) from sale of businesses or significant fixed assets	-105	-48
Items affecting comparability	135	105

EBITDA
Operating profit (loss)	14,310	13,023
Depreciation, amortisation and impairments	14,478	11,169
EBITDA	28,789	24,193

EBITDA margin, %
EBITDA	28,789	24,193
Revenue	354,936	282,262
EBITDA margin, %	8.1%	8.6%

Adjusted EBITDA
Operating profit (loss)	14,310	13,023
Depreciation, amortisation and impairments	14,478	11,169
Items affecting comparability	135	105
Adjusted EBITDA	28,924	24,298

Adjusted EBITDA margin, %
Adjusted EBITDA	28,924	24,298
Revenue	354,936	282,262
Adjusted EBITDA margin, %	8.1%	8.6%

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 19

Sustainability

Statement

Koskisen's Sustainability Statement has been prepared

in accordance with the EU’s Corporate Sustainability

Reporting Directive. The report covers Koskisen’s

material sustainability topics for the entire Group and

its value chain.




GENERAL DISCLOSURES		ENVIRONMENTAL INFORMATION

Koskisen’s strategy, business model, administrative organisation and double materiality assessment as well as its results.		Material information regarding Koskisen’s energy use, biodiversity and ecosystems, and circular economy.


SOCIAL INFORMATION		GOVERNANCE
Material information regarding Koskisen’s employees and contractors.		Material information regarding Koskisen’s governance.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 20

General disclosures

In the heart of Koskisen’s growth strategy are creating

value for customers, developing current operations and

taking bold steps. Koskisen Oyj’s Group Sustainability

Statement has been prepared on group level in

accordance with Chapter 7 of the Finnish Accounting

Act (1336/1997).


ESRS 2 General disclosures ..................................................................	21

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 21

ESRS 2 General disclosures

General basis for preparation of sustainability statements

BP-1

Koskisen Corporation’s sustainability statement has been prepared at the Group level in

accordance with Chapter 7 of the Accounting Act (1336/1997). The scope of

consolidation is the same as in the company’s annual financial statements.

The sustainability statement covers the Group’s own operations and the value chain as

follows: Scope 3 greenhouse gas emissions upstream and downstream of the value

chain in accordance with the GHG protocol. At the upstream value chain, the reporting

of sustainability matters related to biodiversity covers the activities of contractors in

areas where Koskisen is responsible for felling rights.

Koskisen has not excluded any information from the reporting.

Disclosures in relation to specific circumstances

BP-2

Koskisen has not deviated from the medium- or long-term time horizons defined in ESRS 1.

The medium-term strategy period is 1–4 years and the long-term is more than five years.

In the calculation of Scope 3 greenhouse gas emissions in the value chain, sector-

specific average emission factors have been utilised as indirect sources to estimate the

upstream and downstream emissions of the value chain. The plan is to improve the

accuracy of the calculations, for example, by requesting direct emission data from value

chain partners when possible. However, direct emissions data are not yet utilised in full,

even though they would be available because of the comparability of the calculations. A

description of the accuracy of the calculation, as well as the indicators, emission factors,

methods and assumptions of the Scope 3 calculation, are specified in more detail in

section E1-6 of the sustainability report Gross Scopes 1, 2, 3 and Total GHG emissions.

The quantitative results of biodiversity metrics are subject to uncertainties based on

limited sampling. The uncertainty is particularly focused on sampling-based audits, i.e.

the information is based on only a part of the management activities that have taken

place, as the sampling method of internal audit has been used in the assessment. In

the future, the reliability of the results will be improved by expanding the monitoring of

the metrics to cover a larger number of management actions and to support the

information with internal monitoring carried out on all management actions.

In the calculation of resource use and circular economy metrics, quantitative results are

subject to uncertainties related to unit conversions. Due to the variability in wood

density, cubic volume is used as the storage unit. In addition, not all primary data is

available in mass-based form.

It is possible that the metrics include uncertainties that have not been identified, but as

this is the second reporting year, more comprehensive monitoring data can provide

greater assurance of the accuracy of the information. No measurement uncertainty is

associated with the monetary values reported.

Significant changes in the presentation of sustainability information concern the

sawmilling and wood procurement operations incorporated as part of the business

acquisition of Iisveden Metsä as of 1 June 2025. However, the operations of the site

correspond to the existing sawmilling and wood procurement activities, so there will be

no changes to the reported information other than the data related to the added site.

Scope 3 reporting involves uncertainties and assumptions, which are described in Gross

Scopes 1, 2, 3 and Total GHG emissions section of the sustainability report E1-6.

The indicators in section E4-5 were updated to a more purposeful format. Separate trainings

are no longer reported; instead, the indicators used going forward are “Share of forest

professionals who have participated in training related to considering forest biodiversity (%)”

and “Share of contractors who have participated in training related to considering forest

biodiversity (%)”. The trainings vary annually and are defined separately for each year, and

they are assigned to those Koskisen employees and contractor employees whose

participation is required. The participation rate is calculated based on this target group. The

trainings described in the indicators are presented separately in section E4-3. There is an

uncertainty factor related to contractor training data, as employee information comes

from the contractors; however, it is possible that, due to changing circumstances,

individuals working on sites may not be included in the reported training data.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 22

In the biodiversity indicator framework, the metric “Share of deciduous trees in

seedlings sold” is reported differently for 2025 compared to 2024 due to incomplete

information provided by nurseries. The information is more uncertain, as it has been

collected from contracts, the volumes of which may differ from actual realisations,

though not to a significant extent. However, this will ensure consistency in reporting

going forward, as the data will come from Koskisen’s own system. The indicator

framework also added “Forest owners participating in the Forest Environment

Programme (%)”, for which no data was available for 2024.

In connection with the update of the materiality analysis, the ESRS G1 Conduct of

Business standard and its sub-areas—Corporate Culture, Protection of Whistleblowers,

and Corruption and Bribery, as well as the related subtopics of Prevention and

Detection, including Training, and Incidents—were added to the reported information.

The standard was included in reporting because it was recognised that ethical

operating practices and publicly communicating them enable and strengthen

opportunities for cooperation and are a key part of customer requirements. This

ensures that the company’s reporting responds to customers’ growing need for

transparent information on administrative processes.

In the 2024 reporting, a human error occurred during data processing at the stage of

preparing the sustainability statement. During the editing of a table, one numerical

value was incorrectly changed in the ESRS E4 standard “Share of stands where high

stumps have been left in accordance with the guidelines (%)” indicator, where the

correct value of 43% had erroneously changed to 2% in the reporting table. Regarding

Scope 1 and 2 target setting, the figures previously included the Scope 3 category,

which has been separated and presented correctly in the 2025 report for both target

setting and monitoring. The correct figures are: location-based Scope 1+2 (2022): 12,250

tCO₂e and market-based Scope 1+2 (2022): 22,252 tCO₂e

No disclosures are provided based on other legislation or sustainability reporting

frameworks.

Koskisen Group utilises internationally recognised management system standards in

its operations. The Group’s quality, environmental, and occupational health and safety

management are based on ISO standards of the European standardisation system,

which are generally accepted frameworks in the industry for continuous improvement

and more responsible operating practices. The certified systems support Koskisen’s

sustainability efforts.

Koskisen’s operations are guided by the following certifications:

ISO 9001:2015 – A quality management system that ensures systematic operations,

monitoring of customer satisfaction, and continuous development of processes.

ISO 14001:2015 – An environmental management system that supports the

identification of environmental risks, reduction of environmental impacts, and

compliance with environmental legislation.

ISO 45001:2018 – An occupational health and safety management system that focuses

on ensuring a safe and healthy working environment, risk management, and the

development of employee well-being.

The above-mentioned management systems have been verified by Kiwa Inspecta as

follows: Koskisen’s operations in Järvelä and Hirvensalmi are certified in accordance

with ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 standards. The Toporów site in

Poland holds a valid ISO 9001:2015 certification.

In sustainability reporting, certified processes that are material include the risk

management and stakeholder processes covered by the ISO 9001 standard. These also

include aspects of the sustainability system, which are examined more

comprehensively in a separate process coordinated by the sustainability team.

The metrics presented in the sustainability report are not verified in any other context

than in connection with the assurance of the sustainability report, unless otherwise stated.

The role of the administrative, management

and supervisory bodies

GOV-1

Composition of the administrative, management and supervisory

bodies

Koskisen Corporation’s governance consists of the Board of Directors, the Board’s Audit

Committee, Personnel Committee and CEO, supported by the Executive Board. The

company complies with the Finnish Corporate Governance Code. The corporate

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 23

governance principles are defined in the corporate governance principles approved by

the company’s Board of Directors.

The management, monitoring and reporting of impacts, risks and opportunities related

to sustainability issues as part of the activities of the company’s administrative,

management and supervisory bodies is described below.

Board of Directors (Governing Body)

The duties and responsibilities of Koskisen’s Board of Directors are determined under

law or the Company’s Articles of Association and other applicable legislation. The Board

of Directors has rules of procedure that define the duties of the Board of Directors and

its Chair.

The Board of Directors has general authority in all matters that have not been assigned

to other governing bodies by law or the company’s Articles of Association. The general

task of the Board of Directors is to take care of Koskisen’s administration and the

appropriate organisation of its operations. The Board of Directors discusses

sustainability-related issues regularly, in accordance with its annual cycle, and is

responsible for the company’s statutory sustainability report.

The Chair of the Board in 2025 was Pekka Kuusniemi (independent), Vice Chair Hanna

Sievinen (independent), members Carita Himberg (independent), Karri Koskela

(independent), Hanna Masala (independent), Kalle Reponen (independent).

Audit Committee (Supervisory Body)

The Audit Committee of the Board of Directors is responsible for ensuring the

arrangement, supervision and risk management of appropriate governance in

accordance with the Finnish Companies Act. The majority of the members of the Audit

Committee must be independent of the company, and at least one member of the

Audit Committee must be independent of the company’s significant shareholders.

The members of the Audit Committee in 2025 were Hanna Sievinen, Karri Koskela and

Hanna Masala.

Personnel Committee (Supervisory Body)

The purpose of the Personnel Committee is to enhance board work by preparing

matters related to remuneration, appointments, or other personnel-related issues to be

decided at board meetings or at the general meeting. A majority of the members of the

Personnel Committee must be independent members of the company’s Board of

Directors. Members of the Personnel Committee must have sufficient expertise and

experience, taking into account the committee’s area of responsibility.

The members of the Personnel Committee in 2025 were Pekka Kuusniemi (Chair),

Carita Himberg and Kalle Reponen.

Executive Board (Management Body)

The CEO manages the company’s operations in accordance with the instructions and

orders issued by the Board of Directors and keeps the Board aware of the development

of the company’s business and financial situation.

The Executive Board supports the President and CEO in the implementation of the

company’s strategy and manages Koskisen’s business as a whole, including

sustainability aspects as part of the management business model ensuring that

business operations are conducted in accordance with the company’s governance

principles and applicable regulations.

The members of Koskisen’s Executive Management Team have extensive authority to

operate within their own areas of responsibility, and they are obliged to develop

Koskisen’s business in accordance with the objectives set by the company’s Board of

Directors and the President and CEO.

As of 31 December 2025, the Executive Board consisted of Jukka Pahta (Chief Executive

Officer), Karri Louko (CFO), Tom-Peter Helenius (Director, Panel Industry), Tommi Sneck

(Director, Sawmill Industry), Joonas Ojasalo (Director, Wood Supply and Bioenergy),

Minna Luomalahti (Director, Human Resources), Sanna Väisänen (Director,

Sustainability and Corporate Communications) and Olli Nikitin (General Counsel).

In addition to the Executive Board, Koskisen’s extended Executive Board also includes

persons who coordinate other sustainability aspects (IT, quality, environment, safety,

technical, services).

As of 31 December 2025, in addition to the core members described above, the

extended Executive Board included Markku Lähteenmäki (Director of Quality,

Environment and Safety), Antti Kari (Head of IT), and Jarkko Veck (Chief Shop Steward).

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 24

The extended Executive Board meets four times a year. Through the representation of

the Chief Shop Steward, employees are consulted and involved in the decision-making

process within the extended Executive Board.


Composition of administrative, management and supervisory bodies	2025	2024
Number of executive members	11	11
Number of non-executive members	6	6

Employees with employment relationship are represented in the expanded Executive

Board, which includes the Chief Shop Steward as well as the Director of Quality,

Environment and Safety. Employees are not represented on the Board of Directors or

its Committees.

When preparing the composition of the Board of Directors, the members’ educational

and professional background, gender and international experience have been taken

into account so that the Board of Directors has a broad and diverse representation of

expertise and experience that supports Koskisen’s operations. This ensures that, as a

whole, the Board of Directors possesses sufficient expertise in the company’s business

and industry, strategic decision-making, corporate and financial administration,

internal control and risk management, as well as good governance practices. Women

and men must be equally represented on the Board of Directors, as required by

applicable regulation. In preparing its proposal, the Board has assessed that the

proposed composition of the Board includes sufficient sustainability (ESG) expertise

and experience, as required by the nature and scope of the company’s operations at

the time. The relevant experience is presented in the table below.

The members of the company’s Board of Directors and its Audit Committee have

relevant experience in the refining industry, human resources management, corporate

finance, international business and target markets, as well as in strategic planning and

execution of business operations, which is relevant to the assessment of Koskisen’s

operations and sustainability impacts, risks and opportunities.

The company’s CEO, as well as the Executive Board and the Extended Executive Board,

have relevant experience in business management at the strategic level and at the

level of the company’s individual businesses, forestry, corporate finance, financing, risk

management, human resources, and sustainability and communications matters,

relevant to Koskisen’s operations and the assessment of sustainability impacts, risks

and opportunities.

The company’s Board of Directors and Executive Board have access to the

sustainability-related expertise of the company’s in-house specialists.

Koskisen’s Board of Directors has six (6) members, half (50%) of whom are women and

half (50%) men. The average ratio is 1.0.

The Executive Board consists of eight (8) members, of which two (2 persons, 25%) are

women and six (6 persons, 75%) men.

The Extended Management Team consists of eleven (11) members, of which two (2

persons, 18%) are women and nine (9 persons, 82%) men.

The Audit Committee has three (3) members, of which two (2 persons, 67%) are women

and one (1 person, 33%) is a man.

The Personnel Committee has three (3) members, of which one (1 person, 33%) is a

woman and two (2 persons, 67%) are men.

In 2025, the percentage of Board members who were independent of the company and

significant shareholders was 100 per cent.

The Audit Committee monitors the impacts, risks and opportunities related to

sustainability. The members of the Audit Committee in 2025 were Hanna Sievinen, Karri

Koskela and Hanna Masala.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 25

Koskisen’s Governance Expertise and Experience


	Board of Directors	Extended Executive Board
Governance
Board Experience	●●●●●●	●●●●●●●○○○○
CEO Experience	●●●●○○	●●●○○○○○○○○
Executive Management Experience	●●●●●●	●●●●●●●●●●●

Industry
Forest Industry	●●●●●●	●●●●●●●●●●●

Business and Sustainability
Strategy and Business	●●●●●●	●●●●●●●●●●●
ESG and Green Transition	●●●●●●	●●●●●●●●●●●
Governance and Compliance	●●●●●●	●●●●●●●●●●●
Ethical Business Practices	●●●●●●	●●●●●●●●●●●

Geographical Experience and Expertise
Europe, Middle East, and Africa (EMEA)	●●●●●●	●●●●●●●●●●○
Americas	●●●●●○	●●●●●○○○○○○
Asia-Pacific (APAC)	●●●●●○	●●●●○○○○○○○


●	Excellent	●	Good	●	Basic	○	No Experience

GENDER DISTRIBUTION, %

Board of Directors

GENDER DISTRIBUTION, %

Extended Executive Board

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 26

The responsibility of the Board of Directors, the Audit Committee, Personnel Committee

and the Executive Board for sustainability-related impacts, risks and opportunities is taken

into account in the Corporate Governance Principles, the Group’s Operating Policy and

the principles derived from it (Environmental Principles, Human Resources Principles and

Risk Management Policy). The company’s Board of Directors, Audit Committee, Personnel

Committee and Executive Board play a key role in the management, supervision and

reporting of sustainability issues.

Board of Directors

• Approves long-term sustainability goals, monitors their implementation, guides the

company’s management towards the goals

• Monitors and evaluates the link between sustainability work and the strategy and

business model, as well as the performance of operations in relation to sustainability

targets

• Approves principles or policies for material sustainability impacts

Monitoring: In accordance with the Board’s annual cycle. Sustainability matters are

reviewed twice a year, in November for targets and measures, and in September for

sustainability impacts, risks and opportunities. Individual areas of sustainability, related

to personnel, safety and operating principles are examined as part of the related Group

entities.

Audit committee

• Supervises reporting of sustainability impacts

• Takes care of the risk management and internal control of sustainability impacts

• Reports to the Board of Directors

Personnel Committee

• Addresses matters related to remuneration, nominations and personnel

• Reports to the Board of Directors

Executive Board

• Responsible for the implementation of the business strategy, taking into account

sustainability perspectives

• Responsible for implementing sustainability actions as part of the business, ensuring

sufficient resources

• Decides on the content and indicators of the Sustainability Programme based on

material sustainability impacts

• Risks and opportunities related to material sustainability impacts are part of the

corporate risk management (ERM) reported to the Executive Board, and the need for

updating the double materiality assessment is also assessed in the review, which is

carried out as a separate process

• The development of material sustainability impacts has been assigned to the relevant

director responsible for the respective business or support function

• Reports to the Board of Directors

Extended Executive Board

• Monitors sustainability processes, such as short-term and long-term goals, measures

and their results on a quarterly basis

• Hearing and involving the personnel in decision-making through the representation

of the Chief Shop Steward

• Wider representation of sustainability aspects (IT, environment, quality, safety,

technical services)

Business and support functions

• Integrating sustainability matters into business and support functions

• Developing operations in accordance with sustainability goals

• Reporting on sustainability matters to the Executive Board

• Sustainability matters are reported to the extended Executive Board and coordinated

by a core group on sustainability matters, consisting of representatives from the

business units.

The controls and procedures for managing impacts, risks and opportunities are

integrated into the business processes and operational management system, including

internal and external audits and internal control. Sustainability-related risks and

opportunities are managed as part of enterprise risk management (ERM), with

sustainability aspects also reported to the Board of Directors.

The Executive Board sets targets that are approved by the Board of Directors and

monitored by the Extended Executive Board. Progress towards the targets is reported

annually to the Board of Directors.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 27

The sustainability-related competence and expertise needs of the company’s

administrative, management and supervisory bodies are based on a general self-

assessment conducted as part of the preparations for regulated sustainability reporting

and the related requirements to understand and manage material sustainability

impacts, risks and opportunities.

The company’s operational management is familiar with the key sustainability impacts

of the industry and has participated in defining the related risks and opportunities. The

operational management possesses expertise and understanding of sustainability

reporting and the related regulatory requirements.

When forming the Audit Committee, the members’ experience and competence

related to sustainability matters and their reporting have been taken into account. The

company’s Board of Directors possesses experience and expertise from various

industries, including the integration of corporate sustainability aspects into business

operations. The Board of Directors, the Audit Committee, and the operational

management engage in ongoing dialogue regarding sustainability impacts, the related

financial risks and opportunities, and their strategic linkage and governance through

the business model. The company also utilises external expertise, when necessary, to

strengthen internal capabilities and to support the development of sustainability

processes, reporting, and operating models.

The assessment of required competence and expertise is systematically taken into

account as part of the evaluation and selection criteria for new members of the

administrative, management and supervisory bodies.

Information provided to and sustainability matters addressed

by the undertaking’s administrative, management and

supervisory bodies

GOV-2

The administrative, management and supervisory bodies regularly address matters

related to material sustainability matters. The Board of Directors convenes 8–12 times

per year. The Director of Sustainability and Communications reports annually to the

Board on the progress of the company’s sustainability objectives and actions. The

Director of Quality, Environment and Safety reports once a year to the Board on

sustainability impacts, risks, opportunities, and stakeholder perspectives as part of the

Group’s enterprise risk management (ERM) reporting. The Board reviews the double

materiality assessment and approves the statutory sustainability statement.

The Group Executive Board meets on a monthly basis. Sustainability topics are

presented by the Director of Sustainability and Communications and are included on

the Executive Board’s agenda as needed. In the extended Executive Board,

sustainability topics compiled by the Group’s business units — including the entire Due

Diligence process — are addressed on a needs-based basis.

The Board of Directors, the CEO, and other members of management are responsible,

as part of their duty of care in decision-making, for ensuring that material sustainability

impacts, risks, and opportunities — as well as any related trade-offs — are taken into

account in strategic decisions within their scope of authority, including major

transactions and investments. The outcomes of the double materiality assessment

have been utilised in the company’s strategic planning.

The administrative, management and supervisory bodies have reviewed the results of

the double materiality assessment process, including the material impacts, risks and

opportunities. Matters related to occupational safety and personnel are addressed as

part of Group-level processes by all governance bodies. A detailed list is provided in

section SBM-3: Material impacts, risks and opportunities and their interaction with

strategy and business model.

Integration of sustainability-related performance

in incentive plans

GOV-3

Koskisen does not have remuneration schemes that are exclusively linked to

sustainability matters.

Climate-related sustainability matters have been taken into account in the long-term

incentive plan approved by the Board of Directors. In the long-term incentive plan for

2025–2027, reduction targets for Scope 1 and 2 categories have been set for the

company’s Executive Board in accordance with the company’s Sustainability

Programme. Further information on the target is provided in section “E1-4 Targets

related to climate change mitigation and adaptation”. The weight of the climate-

related target in the incentive plan is 10%.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 28

The company has both short- and long-term incentive plans for members of its

administrative, management and supervisory bodies, including members of the

Management Team and the extended Management Team. These schemes include

sustainability performance indicators alongside other metrics. The incentive plans are

designed to support the company’s value creation, long-term financial success, and

implementation of its business strategy. They are based on the remuneration policy

that governs the remuneration of the CEO and the Board of Directors, which is

approved by the Board and presented at the General Meeting.

In 2025, the sustainability-related metric included in the short-term incentive

programme for the members of the Executive Board and the extended Executive

Board was occupational safety (LTA1).

The sustainability remuneration indicators of the Executive Board and the Extended

Executive Board are based on performance indicators set annually. Short-term

performance indicators, target levels and weights, including sustainability-related

indicators, are set annually by the company’s Board of Directors in accordance with the

Remuneration Policy. The long-term incentive plan consists of performance periods of

several financial years, for each of which the Board of Directors decides separately on

an annual basis on the performance criteria and related targets.

Sustainability-related performance metrics in the incentive plan for the Executive

Board and the extended Executive Board form part of the Group-level short-term

targets. Their weighting in 2025 was as follows: occupational safety (LTA1) 20%. The

metric relates to sustainability matters concerning the company’s own workforce.

The incentive plans are based on the remuneration policy prepared and presented by

the Board of Directors and submitted to the General Meeting for consideration. The

remuneration policy is presented to the General Meeting at least once every four years.

Statement on due diligence

GOV-4

Koskisen’s due diligence process related to sustainability matters is an integral part of

the continuous management and assessment of sustainability impacts, risks and

opportunities. The company’s processes for managing sustainability impacts have been

updated during 2023–2024 to align with the disclosure requirements of the ESRS

standards. Koskisen has identified, assessed and established procedures for managing

its sustainability impacts in relation to the topics covered by the ESRS standards. The

process is continuous and subject to annual review. This includes the annual

identification of relevant sustainability-related regulations and stakeholder

expectations, which are integrated into the company’s operations where applicable.

The management of sustainability impacts covers action plans, indicators, targets,

results, and the evaluation of effectiveness and resourcing in relation to the

sustainability impacts identified through the double materiality assessment. These are

reported annually in accordance with the ESRS standards.


CORE ELEMENTS OF DUE DILIGENCE	PARAGRAPHS IN THE SUSTAINABILITY STATEMENT
a) Embedding due diligence in governance, strategy and business model	ESRS 2 GOV-1 The role of the administrative, management and supervisory bodies. SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model.
b) Engaging with affected stakeholders in all key steps of the due diligence	ESRS 2 SBM-2 Interests and views of stakeholders. E1-2 Policies related to climate change mitigation and adaptation. ESRS E4-2 Policies related to biodiversity and ecosystems ESRS E5-1. Policies related to resource use and circular economy and ESRS S1-1 Policies related to own workforce.
c) Identifying and assessing adverse impacts	ESRS 2 GOV-5 Risk management and internal controls over sustainability reporting. IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities.
d) Taking actions to address those adverse impacts	ESRS E1-3 Actions and resources in relation to climate change policies. E4-3 Actions and resources related to biodiversity and ecosystems. ESRS E5-2 Actions and resources in relation to resource use and circular economy. ESRS S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions.
e) Tracking the effectiveness of these efforts and communicating	ESRS 2 GOV-1 The role of the administrative, management and supervisory bodies. E1-4 Targets related to climate change mitigation and adaptation. ESRS E4-4 Targets related to biodiversity and ecosystems. ESRS E5-3 Targets related to resource use and circular. ESRS S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 29

Risk management and internal controls over

sustainability reporting

GOV-5

Sustainability reporting complies with the Group-level principles and processes of

statutory reporting, risk management and internal control. The internal control of

sustainability reporting is based on the identification, analysis and targeting of control

to the most material identified risks.

Risks in sustainability reporting are addressed as part of internal financial monitoring.

The effectiveness of sustainability reporting controls is reviewed at least once a year as

part of internal monitoring. The results are monitored and the controls are developed

as part of the Group’s continuous improvement, which is reported to the Group

Executive Board. The effectiveness of internal control is monitored as part of

management reviews.

Koskisen’s internal control process follows the COSO principles and the process defined

in the internal control policy.

The main identified risks in sustainability reporting are the accuracy of the reported

information and the adequacy of resources and expertise in a small organisation. To

ensure the accuracy of the reported data and the sufficiency of resources, the

organisation has established a model that defines the roles and responsibilities for

sustainability reporting. The adequacy of the model and development needs are

reviewed twice a year as part of internal financial monitoring in cooperation with the

persons responsible for sustainability reporting. The processes required for producing

reportable data have been integrated into the business processes of the respective

units.

To ensure the accuracy and timeliness of the information reported from own

operations and the value chain, information-related uncertainties and data control

points were defined in cooperation with data producers during 2025. These are part of

the shared business processes. The identified observations are utilised in the business

units to support other development work. Monitoring is defined and continuously

developed in cooperation with Finance and IT, Sustainability and Communications, and

the business units producing the data. Monitoring is carried out annually as part of

meetings related to the development of reporting.

Risks related to sustainability reporting have been identified and addressed as part of

the reporting process in cooperation between internal financial monitoring and the

persons responsible for sustainability reporting.

Internal control observations related to sustainability reporting are handled through a

process that includes the description of risks, the impact and likelihood of risk

realisation, as well as mitigation measures, responsible persons and regular monitoring

of the progress of actions.

Risks related to sustainability reporting are reported to the administrative,

management and supervisory bodies as part of internal financial monitoring.

Strategy, business model and value chain

SBM-1

Koskisen processes wood raw material into sawn timber, plywood and chipboard. From

a sustainability perspective, the operations are closely linked to climate as well as

resource use and the circular economy. Wood Procurement mainly buys wood raw

material from private landowners and offers forest management and regeneration

services, which are directly related to biodiversity and ecosystem-related sustainability

matters.

There were no significant changes in suppliers or business relationships. However, as a

result of the acquisition of the Iisveden Metsä business operations, some individual

changes occurred in business relationships, for example in customer relationships.

These do not differ significantly from Koskisen’s other business operations, as the new

customer relationships are located in markets familiar to Koskisen. In spring 2025,

Koskisen launched a new thin plywood product, Zero ThinPly, which is made entirely

from bio-based materials and contains no added formaldehyde, phenolic compounds

or urea. In the thin plywood, fossil-based adhesive has been replaced with an adhesive

made from bio-based raw materials. The product continues the Zero furniture board

previously launched by Koskisen, which is also made entirely from bio-based raw

materials. During 2025, Koskisen piloted a new process enabling the use of recycled

material in chipboard. However, the process is not commercially significant and does

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 30

not change the company’s operating principles. There have been no changes in the

business model. The company’s strategy was updated in 2024 and is tied to key

sustainability issues.

Koskisen’s customers are mainly direct customers in the logistics, construction,

automotive, die-cutting, furniture, interior decoration, packaging and chemical forest

industries, among others. In addition, a smaller proportion of Koskisen’s products are

sold to wholesalers and distributors. Koskisen sells a limited number of thin plywood

and veneer products directly to consumers through its own online store. The Kore

brand’s customers operate mainly in the automotive industry, to which Koskisen

supplies floor, wall and roof panel sets, wheel arches and accessories.

Headcount of employees by geographical areas


	2025	2024
Finland	869	796
Poland	130	131
Other	15	16
Headcount of employees in total	1,014	943
³ The sustainability statement uses the figure as of the end of the financial year

Revenue by ESRS topic and segment


Revenue, tEUR	2025	2024
Revenue	354,936	282,262

Koskisen is not active in the sectors related to fossil fuels, chemical production,

controversial weapons, or tobacco cultivation and production, and there is no income

from these industries.


Revenue from activities related to the following sectors		2025	2024
Fossil fuels	No	-	-
Chemical production	No	-	-
Controversial weapons	No	-	-
Tobacco cultivation and production	No	-	-


Koskisen’s sustainability goals by 2027	Perspectice
We are reducing our own and our value chain’s CO₂ emissions compared to the year 2022: Scope 1 and 2 emissions by 50%, and Scope 3 emissions by 20%.	All product groups, all customer segments, and all geographical regions.
Taking into account operations-supporting ecosystem services – 88% certified wood raw material	All product groups, all customer segments, and all geographical regions.
Efficient and optimised use of wood raw material – Wood raw material efficiency for long-lasting wood products 60%	All product groups, all customer segments, and all geographical regions.
Reduction of accidents – Accident frequency rate LTA1 < 5	Relations with own workforce and all geographical regions.
We support employee well-being and competence development. The employee well-being survey score 3,8/5,0.	Relations with own workforce and all geographical regions.

Koskisen’s operations are based solely on the sustainable sourcing and processing of

wood into carbon-sequestering wood products for different product categories,

customer categories and markets. Because the procurement, processing, storage and

transport of wood have an impact on the climate and the biodiversity of the forest

environment, Koskisen has set sustainability targets for its operations, especially related

to the reduction of greenhouse gas emissions and biodiversity.

From the perspective of sustainability, Koskisen has defined wood wisdom as the basis

of its strategy for 2024–2027, which means that the forest, the people connected to

Koskisen’s operations, and society are considered partners in operations. The growth

sought in the strategy takes place by creating value for the customer, developing

current operations and taking bold steps.

Value is created for customers by helping them mitigate climate change and adapt to

the future through their products and services. From the perspective of sustainability,

the development of current operations means, in particular, the promotion of a safe

working environment and the improvement of well-being at work and competence.

Koskisen is not based in an EU Member State that would allow an exemption from the

disclosure of information referred to in Article 18(1)(a) of Directive 2013/34/EU22.

Koskisen is a Finnish wood processing company whose value chain extends from wood

procurement to the customer use of wood-based products. The main raw material is

wood, which Koskisen processes into sawn timber, panel products and wood products

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 31

with high added value, among other things. Wood wisdom is at the core of sustainable

business. The entire value chain from wood harvesting to end products is designed

around synergistic and sustainable material flows.

Koskisen procures mainly certified wood as raw material from Finnish private forest

owners in accordance with the principles of wood procurement.

Koskisen’s own industrial operations focus on the manufacture of sawn timber, panel

products and other products with high added value. The Panel Industry offers

customised high-quality panel solutions. The Panel Industry’s net sales consist of the

sale of plywood, chipboard, thin plywood and veneer, as well as optimised van interior

solutions. The Sawmill Industry offers sawn timber and further processed products

made from high-quality wood raw material. The Sawmill Industry’s net sales consist of

the sale of sawn timber and further processed timber, as well as by-products of wood

procurement for the pulp and paper industry and bioenergy for several power plants.

As an investment, Koskisen operates in the mechanical wood processing industry with

a unique integrated operating model. This model, along with its synergistic functions,

enables high material and overall efficiency, thereby supporting profitable growth.

Operations at the upstream of the value chain are intrinsically linked to forest

management operations. Cooperation with forest owners and subcontractors offering

management services is key. Wood procurement complies with the requirements set

by the PEFC or FSC chain of custody certificates, which ensures that the wood is

harvested in accordance with forest certification requirements that take biodiversity

into account. In addition, a chain of custody system that enables the traceability of

wood is used in all procurements.

Koskisen’s ability to create value is based on a material-efficient and integrated value

chain from forest to end product. An integrated operating model is based on

interconnected processes that form a business model from wood procurement

through production to finished products. The entire value chain is designed around

synergistic material flows and an agile operating model, which enables the use of raw

materials from different sources.

Koskisen’s production facilities are located in Järvelä and Hirvensalmi in Finland and in

Skwierzyna and Toporów in Poland. The business operations of Iisveden Metsä were

integrated into the business of Koskisen Oyj through a business acquisition completed

on 1 June 2025. The Group’s main market area is Finland and the rest of the EU.

Koskisen’s customers include operators in the logistics, construction, automotive,

stamping, furniture, interior decoration, packaging and chemical forest industries. The

company exports to a total of about 70 countries.

Potential sustainability-related impacts, risks and opportunities in relation to the

business model and value chain are described in table SBM-3: Material impacts, risks

and opportunities and their interaction with strategy and business model.

Financial information related to the business segments is presented in notes to the

consolidated financial statements in Note 2 Segment information and revenue.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 32

Interests and views of stakeholders

SBM-2, SBM-2 S1

Koskisen engages in dialogue with its key stakeholders and develops its operations,

strategy and business model based on stakeholder feedback and expectations. The

interests, perspectives and rights of Koskisen’s employees are an integral part of the

company’s strategy and business model. Koskisen aims to be a sustainable growth-

oriented employer, with related goals including being the best employer in the sector

and regions, fostering meaningful work, promoting employee well-being and

competence, supporting diversity and equality, and offering the opportunity to own

shares in the company.

Koskisen’s key stakeholders, the purpose, forms and content of stakeholder dialogue,

and how this dialogue is taken into account in the company’s operations are presented

in the following table.


Stakeholder	Stakeholder interaction	Purpose of interaction	Relevant themes	Impact on operations, business model, and strategy
Nature and NGOs acting on its behalf	Identification of impacts on nature. Dialogue, monitoring of activities, and hearing different perspectives in various events.	Minimising adverse effects on forest ecosystems and promoting positive impacts on biodiversity.	Safeguarding diverse forest environments and the ecosystem services they provide in the future. Increasing biodiversity-enhancing actions, including measures that go beyond certification requirements and are based on scientific research. Environmental impacts at production sites related to emissions affecting air, water and soil, as well as resource use and waste circulation.	Wood is sourced as certified, and all operations are carried out at least in accordance with defined minimum requirements.
Own workforce	Dialogue, consultation, information sharing, and communication	Collaboration and development	Balanced and continuous workload across economic cycles, occupational safety and well-being, fair compensation, competence development, and good working conditions and the comprehensive consideration of human rights as an employer.	Securing the availability of workforce and preserving jobs. Goal-oriented development of safety culture and employee well-being.
Local communities	Information sharing, and communication	Collaboration and development	Business operations affect local communities particularly through employment, the visibility and reputation of the locality, and the quality of the living environment. The employment impact supports the well-being and sense of security of local residents and strengthens the municipalities’ tax base and purchasing power. Operations also influence the development of skills and labour markets in the production locations. Other key aspects include environmental impacts such as noise, pollution prevention and landscape impacts, as well as small-scale support for local community activities.	Local communities are taken into account and their voices are heard in decision-making.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 33


Stakeholder	Stakeholder interaction	Purpose of interaction	Relevant themes	Impact on operations, business model, and strategy
Customers and end-users	Collaboration, partnership	Providing high-quality products and advancing both operations and product development.	Long-lasting, carbon-binding products made from renewable raw materials that are traceable and have a known origin. The products must be safe and of high quality, suitable for their intended use, fossil-free, recyclable, competitively priced, and compliant with all applicable requirements. Supply chain audits, certifications, and other systems are used to ensure responsibility and sustainability throughout the value chain. Material efficiency, circular economy principles, and high value-added processing are key. Transparent product information about impacts and raising customer awareness through environmental labelling are essential. Koskisen brand in products. Consideration of ethical aspects and transparent communication.	Carbon footprint, product information, reducing the product-specific carbon footprint, circular economy, material efficiency, and recyclability.
Researchers, academic institutions, and students	Co-operation, sharing information about activities, projects	Learning and innovation	Innovation and development work, especially in the field of circular economy, with a focus on increasing the degree of processing through innovation. Creating job opportunities for graduates, and raising awareness among students about working life and its demands. Two-way dialogue — bringing students’ perspectives to employers. Collaboration to develop the industry, and sharing knowledge for research purposes.	Innovation of new circular economy products in partnership with others. Collaborative efforts also help secure workforce availability for positions where formal training does not yet exist.
Forest owners	Information sharing, communication, customer relations, and meetings	Sourcing of raw materials, advising forest owners towards sustainable forestry practices, and providing support when needed — for example, in conservation measures.	Responsible sourcing of raw materials (including consideration for biodiversity and prevention of environmental degradation) and income for forest owners.. Ensuring the growth and regeneration of future forests. Knowledge of diverse forest management practices and a wide range of expert services to support the goals of forest owners.	Safeguarding the long-term supply of raw materials
Shareholders and financial institutions	Meetings and communication	Securing and developing operations while creating shareholder value.	Success in ESG themes and integration of sustainability impacts as conditions for financing.. Risk management from a sustainability perspective. Development of shareholder value, continuity, predictability, transparent communication, and continuous improvement.	Profitability and transparency as the foundation for operations and continuous development.
Advocacy and industry associations	Co-operation	Promoting the development and resilience of the industry	Impacts on the vitality of forestry sector, influencing regulation through collaboration, ensuring and strengthening consistent practices across the industry, and sharing knowledge.	Securing the conditions for continued business operations in a changing operating environment.
Subcontractors, suppliers, and service providers	Collaboration, supply chain management, and meetings	Mutual collaboration to ensure stable operations and advance product development, particularly in terms of sustainability	Predictability and continuity of work, fair operating practices (improving the perception of the entire sector), transparent communication, and the risk of exploitation in the supply chain. Sufficient margins. Provision of information, support and training on appropriate operating practices when needed. Cooperation, for example, in equipment procurement or in supporting their development.	Securing the prerequisites for long-term business continuity through cooperation. Advancing circular economy practices and low-carbon development.
Authorities and certification bodies	Communication and cooperation	Compliance in different operations	Minimum requirement for operations and their acceptability, for customers as well as other partners.	Legal compliance is the minimum requirement for operations and for maintaining acceptability with customers and other partners.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 34

Understanding of stakeholder perspectives

The views of stakeholders were utilised in Koskisen’s double materiality assessment

carried out in 2023, on the basis of which Koskisen defined the sustainability matters

that are material to the company’s operations. The most significant sustainability

matters were related to the procurement of raw materials. No separate stakeholder

consultation on sustainability aspects was carried out during 2025. However, company

representatives engaged in dialogue with stakeholders in various contexts and

identified perspectives also as part of broader societal developments and the public

discussion climate. During 2025, stakeholder perspectives continued to be identified by

the sustainability team. The following observations were particularly highlighted:

• The company’s governance practices and internal control systems provide the

foundation for transparent and responsible operations.

• Stakeholders, particularly customers and partners, expect ethical operating principles

and their practical implementation.

• Stakeholder expectations emphasise openness, reliable traceability of origin, and the

continuous development of sustainable operating models.

• Clear communication and understanding of governance models increase trust and

strengthen the brand and employer image.

• Key forms of stakeholder cooperation include open communication, dialogue,

competence development and cooperation with research and educational

institutions.

• In a polarised discussion climate, transparency, learning from mistakes and fact-

based communication are emphasised.

• The company is committed to open cooperation and the development of

sustainability across different time horizons.

• Considering long-term perspectives is essential for business continuity, also taking

into account future generations and the limited resources of nature.

Stakeholder feedback that emerged in the double materiality analysis conducted in

2023:

• Biodiversity protection was considered the most material topic. Stakeholders

encouraged the company to recommend more biodiversity-conscious forest

management and harvesting services to its wood procurement customers, i.e.

forest owners.

• Forest damage and EU regulation were identified as the most significant future

drivers of increasing raw material prices, highlighting the need to increase the value

generated from end products.

• The Zero furniture board was highlighted as an example of an innovative product,

and stakeholders expressed the need for more such solutions in the future. From a

sustainability perspective, the Zero board stands out for its recyclability and low VOC

indoor emissions. In sawn timber products, key focus areas include forest certification

and supply chain audits.

• Circular economy innovations were also brought up; stakeholders expressed a desire

to find higher value-added applications for by-products, rather than using them

solely for bioenergy.

• The new sawmill was viewed positively also from a sustainability perspective: it

enables material efficiency gains by allowing the processing of smaller logs. Other

investments improving material efficiency, such as the new log sorting line and the

barkless veneer lathe, were also mentioned as positive developments.

• The company’s role as the most significant industrial employer in Kärkölä and the

surrounding areas was seen as having a clear and positive local impact, which was

unanimously acknowledged by the interviewed stakeholders.

Further information on the double materiality assessment is provided in the Material

impacts, risks and opportunities and their interaction with strategy and business

model section.

The stakeholder perspectives of nature, customers, owners and its own workforce have

contributed to strengthening the company’s perceptions of the forces of change and

opportunities in the operating environment and have influenced Koskisen’s strategic

planning for the period 2024–2027. A comprehensive analysis of the operating

environment, including stakeholders, is part of Koskisen’s normal strategic planning

practice, and the company has not made any stakeholder-centric changes to its

strategy or operating model based on the double materiality assessment.

Stakeholder perspectives and interests regarding the company’s sustainability impacts

are taken into account as part of the materiality assessment, which is approved by the

company’s administrative, management and supervisory bodies. Stakeholders are also

considered annually as part of an ongoing process within Koskisen’s

management system.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 35

Material impacts, risks and opportunities and their interaction with strategy and business model

SBM-3


E1 CLIMATE CHANGE
Impacts	Type of impact	Time horizon	Value chain	Description
Climate change mitigation
Emissions from vehicles involved throughout the value chain (including transport of finished products)	Negative impact	All time horizons	Entire value chain	Diesel-powered forestry machinery, along with truck, rail, and maritime transport related to logistics, generate greenhouse gas emissions (Scope 3). In the longer term, fleets based on electricity, biofuels, and synthetic fuels have the potential to reduce these impacts. Additionally, the production processes of both synthetic and wood-based fertilizers used in forestry may also contribute to emissions.
Life cycle emissions from panel products, adhesives and coatings, plastics and metal raw materials	Negative impact	All time horizons	Upstream	Traditional binders and coatings are traditionally fossil-based and thus cause greenhouse gas emissions. During the production of plastic and metal raw materials, emissions are also generated (Scope 3).
Direct greenhouse gas emissions from production facilities	Negative impact	All time horizons	Own operations	The power plants owned by Loimua, the power plants in Järvelä, the chipboard mill’s chip dryer, and other similar instances (with wheel loaders and forklifts) cause greenhouse gas emissions (Scope 1).
Reduction of forest carbon stocks and soil carbon sinks due to harvesting and forest management activities	Negative impact	All time horizons	Upstream	Koskisen’s operations, positioned at the upstream end of the value chain, are closely linked to harvesting and forest management activities (including potential ditch network maintenance). These activities result in changes to land cover (such as tree stands and other vegetation), which can temporarily reduce the natural carbon sink capacity of forest areas. The extent of this impact varies significantly depending on the site type and forest management methods applied.
The carbon sequestered by forests is stored long-term in Koskisen’s wood products.	Positive impact	All time horizons	Own operations	Koskisen’s long-lasting wood products act as carbon sinks by storing biogenic carbon, temporarily removing it from the atmosphere and mitigating its climate warming effect. This includes production side streams like sawdust and chips used in furniture panel manufacturing.
Positive impacts of forest management practices on natural carbon sinks	Positive impact	All time horizons	Upstream	Koskisen offers forest management services to forest owners to promote carbon sequestration and encourages forest regeneration. A well-managed forest – with carefully timed and planned thinning and final felling operations (adapted to site conditions, rotation periods, and carbon sequestration potential) – improves forest growth and health, thereby enhancing its capacity to sequester carbon.
Development of low-emission products that enable emission reductions for the customer	Positive impact	All time horizons	Downstream	When a customer chooses the Zero particleboard or a comparable product in which bio-based binders replace more carbon-intensive fossil-based alternatives, a Scope 3 emission reduction is achieved compared to traditional products.
Energy
Indirect greenhouse gas emissions from purchased electricity (Scope 2)	Negative impact	All time horizons	Upstream	Approximately 81% (in 2022) of the operational carbon footprint originates from the consumption of grid electricity. The emission intensity of grid electricity depends on the energy mix used in its production. As the share of renewable energy sources increases, this impact could be significantly reduced in the future.
Emission reductions achieved through renewable energy production	Positive impact	All time horizons	Own operations	In 2022, 96% of the heat energy used by Koskisen was already from renewable sources. An investment in a solar power plant will further increase the share of renewable electricity consumption in the future.
Emission reductions through energy savings – improving energy efficiency in own operations	Positive impact	All time horizons	Own operations	Koskisen joined the Energy Efficiency Agreement for Industries, coordinated by the Confederation of Finnish Industries, in 2016. The company is committed to the energy-intensive industry action plan for the period 2017–2025. To date, energy efficiency measures have included, for example, switching to LED lighting, avoiding unnecessary idling of production machinery, and applying energy efficiency criteria in equipment procurement. All energy-saving actions reduce the overall need for energy, which in turn leads to lower greenhouse gas emissions from energy production.

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Risks and opportunities	Risk / opportunity	Time horizon	Value chain	Description
Climate change mitigation
Opportunities related to the transition to a low-carbon society – growth in demand for wood construction and wood-based products	Financial opportunity	Medium term	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. However, the most long- lasting products are not always the most profitable option under shifting market conditions, which can make it challenging to set clear targets and plan production accordingly.
Regulatory risks related to the preservation of carbon sinks (transition risks) – harvesting restrictions	Financial risk	Medium term	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. In a deteriorating market outlook, these factors could also affect the availability, cost, and terms of financing.
Climate change adaptation
Risks related to the physical impacts of climate change may disrupt the availability of raw materials	Financial risk	Medium term	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. In the event of a weaker market outlook, such disruptions could also negatively affect the availability, cost, and terms of financing.
Energy
Opportunities for energy self- sufficiency 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 self- sufficiency can improve. Energy self-sufficiency increases the buffer against future energy supply disruptions. Also a positive impact on profitability from the perspective of utilising energy subsidies.
Energy efficiency opportunities	Financial opportunity	All time horizons	Own operations	If the reduction in energy use can be achieved by improving energy efficiency per cubic metre produced, cost savings will be achieved that improve margins

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E4 BIODIVERSITY AND ECOSYSTEMS
Impacts	Type of impact	Time horizon	Value chain	Description
Impacts on the extent and condition of ecosystems
Negative impacts on biodiversity caused by land cover changes related to forest management and harvesting operations	Negative impact	All time horizons	Upstream	Koskisen’s operations, positioned at the upstream end of the value chain, are closely linked to harvesting and forest management activities. These activities result in changes to land cover (including tree stands, other vegetation, and the condition of water bodies) and reduce the connectivity of species and ecological values. Such impacts broadly affect the natural capacity of terrestrial and aquatic ecosystems to maintain biodiversity.
Risks and opportunities	Risk / opportunity	Time horizon	Value chain	Description
Impacts on the extent and condition of ecosystems
Regulatory risks related to biodiversity preservation (transition risks) – restrictions on the use of natural resources	Financial risk	Medium term	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. In the event of a weakening market outlook, such disruptions could also affect access to financing as well as its cost and terms.
Voluntary biodiversity conservation measures that may reduce the availability of wood raw material (transition risks)	Financial risk	Medium term	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. In the event of a weakening market outlook, such disruptions could also affect access to financing as well as its cost and terms.
Direct impact drivers of biodiversity loss (invasive alien species, others)
Physical risks to raw material availability caused by negative biodiversity impacts	Financial risk	Medium term	Upstream	The decline in biodiversity negatively affects forest health, making forests more vulnerable to damage and reducing the availability of wood. For example, the absence of natural predators of harmful insects or the dominance of a single tree species can increase susceptibility to pests and other forest disturbances. This can lead to reduced wood supply and, consequently, higher raw material prices.

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E5 CIRCULAR ECONOMY
Impacts	Type of impact	Time horizon	Value chain	Description
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.
Reducing natural resource depletion 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.
Reducing natural resource depletion 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. Recyclability and sustainability are also considered in procurement processes.
Risks and opportunities	Risk / opportunity	Time horizon	Value chain	Description
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 cost- efficiency. 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. Similarly, the use of recycled materials in new (panel) products may also contribute positively to both revenue and profitability.
Transition risks associated with the circular economy – uncertainty around the legal classification of industrial side streams	Financial risk	Medium term	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.
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. This may result in a permanently higher cost level, and if outlooks weaken, it could also lead to more limited access to financing or less favorable financing terms.
Resource outflows related to products and services
Circular economy transition opportunities – increased demand for renewable, wood-based products	Financial opportunity	Medium term	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.

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S1 OWN WORKFORCE
Impacts	Type of impact	Time horizon	Value chain	Description
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.
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.
Own workforce
Positive impacts related to 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 well- being 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.
Risks and opportunities	Risk / opportunity	Time horizon	Value chain	Description
Own workforce
Opportunities for a positive employer image	Financial opportunity	All time horizons	Own operations	Koskisen’s ability to produce results depends on the availability and retention of skilled and motivated personnel. A positive employer reputation can promote recruitment and retention, improving operational stability and thus financial predictability, reducing the risk of loss of income due to labour shortages.
Freedom of association
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	Type of impact	Time horizon	Value chain	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. Ethical operating practices and public communication about them enable and strengthen opportunities for cooperation and are a key part of customer requirements.

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Material impacts, risks and opportunities in relation to Koskisen’s strategy, business

model and value chain have been discussed as part of the company’s double

materiality assessment.

Koskisen’s most material sustainability matters are directly related to Koskisen’s

strategic choices, value chain and business model. Climate change mitigation and

adaptation, safeguarding biodiversity, transitioning to a circular economy, and topics

related to the working conditions and safety of its own workforce are part of Koskisen’s

strategic planning. Changes in these themes are identified in the due diligence process

and, if necessary, implemented in the Group’s strategic planning in a proportionate

manner based on their significance. This will ensure Koskisen’s ability to react to the

impacts that may result from changes in material sustainability topics.

According to the company’s understanding, its sustainable growth strategy for the

period 2024–2027, which is based on wood wisdom, its business model and value chain,

take into account material sustainability topics and related impacts, risks and

opportunities. The sustainability topics identified and confirmed in the strategy were

already taken into account in the preparation of Koskisen’s strategy before the double

materiality assessment, and no changes have been made to the strategy or business

model based on them, and there are no plans to anticipate or significantly respond to

the impacts by adjusting the business model or strategy.

Sustainability impacts affect people through own workforce (S1). The positive effects

include effects on employees' health and well-being as well as on employment in

Koskisen’s production locations. The negative effects focus on occupational safety and

health. Sustainability impacts affect nature through climate change (E1), biodiversity

and ecosystem services (E4) and the circular economy (E5).

From the perspective of climate change, the positive effects include the storage of

carbon sequestered by forests in Koskisen’s wood products, emission reductions

achieved through renewable energy production, emission reductions through energy

savings, improving energy efficiency in our own operations, the positive effects of forest

management measures on natural carbon sinks, and the development of products

with lower emissions that enable the customer’s emission reductions and positive

impacts on stakeholders through an ethical corporate culture, including in commercial

transactions.. Negative impacts include emissions from vehicles related to wood

procurement and transport throughout the value chain (including the transport of

finished products), direct greenhouse gas emissions from production facilities, life cycle

emissions from adhesives and coatings for flat products, plastic and metal raw

materials, indirect greenhouse gas emissions from the production of purchased

electricity (Scope 2), and the reduction of forest carbon stocks and soil carbon sinks in

harvesting and forestry.

From the perspective of biodiversity and ecosystem services, the negative impacts are

based on changes in land cover related to forest management and harvesting

activities.

From the perspective of the circular economy, the positive effects include slowing

down the depletion of natural resources and promoting the circular economy by

utilising production side streams in products and in heat production as well as

through recycling.

As a positive impact, corporate culture and ethical operating practices significantly

influence Koskisen’s stakeholder relationships, such as customer relationships and the

availability of workforce. Ethical operating practices and public communication about

them enable and strengthen opportunities for cooperation and are a key part of

customer requirements.

Koskisen’s material positive and negative sustainability impacts are directly linked to

Koskisen’s strategy and business model. The impacts come from Koskisen’s own

operations and direct business relationships in the value chain of wood procurement

and the processing wood products industry.

The current financial effects of Koskisen’s material opportunities relate to potential

revenues or cost savings — and ultimately to cash flows — associated with increasing

self-sufficiency in renewable energy production, improving energy efficiency,

enhancing material efficiency and the utilisation rate of recycled materials, as well as

the positive employer image contributing to easier recruitment and lower employee

turnover. Koskisen is not aware of any material sustainability-related risks or

opportunities during the reporting period that would, if realised, affect the company’s

balance sheet value in the 2025 financial year.

The company applies the transitional provision regarding the anticipated financial

effects of material risks and opportunities on its financial position, financial

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 41

performance, and cash flows in the short, medium, and long term, including the

reasonably expected time horizons of such effects, by disclosing only qualitative

information.

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. Systematic efforts to enhance biodiversity also support the

management of future risks related to raw material availability. In the short term, the

company is prepared to respond to regulatory changes, such as climate change

mitigation targets. 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.

In the medium term (1–5 years), the company will strengthen the flexibility of its supply

chain and its ability to react to changes in the market and regulation. Investments in

new production capacity and energy self-sufficiency increase the resilience of the

business. The company must adapt to the long-term effects of climate change, such as

the decline in biodiversity and the availability of raw materials. 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. The use of recycled and circular economy materials saves

costs and improves profitability, while strengthening the company’s market position.

In the long term (more than 5 years), the company’s strategy and business model make

it even more flexible and less dependent on raw material price fluctuations and

environmental risks. Long-term investments in new technologies and expansion into

the global market strengthen the company’s resilience. Koskisen is preparing

sustainable practices in line with its strategy to help adapt to global environmental

risks, such as the challenges of climate change and the depletion of natural resources.

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. New innovations and expansions can also open up new business areas and

revenue growth.

Koskisen’s strategy and business model support the preparation for short-, medium-

and long-term challenges and opportunities, and they support the company’s

resilience to environmental, market and regulatory changes. 

Information will be provided only on the impacts, risks and opportunities covered by

the ESRS reporting requirements, and no information will be provided on the impacts,

risks and opportunities that would be covered by the use of other entity-specific

reporting requirements.

Description of the processes to identify and assess material

impacts, risks and opportunities

IRO-1

The Double Materiality Assessment (DMA) is a formally required method for

determining which sustainability matters Koskisen must prioritise in its strategy and

operations, and which topics are to be reported in the sustainability statement in

accordance with the CSRD.

Koskisen has identified and assessed its resources and operations to determine actual

and potential impacts, risks, and opportunities in its own operations as well as in the

upstream and downstream parts of its value chain. The identification and assessment

process was conducted primarily at a general level, and the company has not

separately screened its operations and plans to identify actual or potential future

sources of greenhouse gas emissions. Koskisen’s impacts on climate change in terms of

greenhouse gas emissions are described in the sustainability statement under

disclosure requirement E1-6. To support the identification and assessment of climate-

related impacts, risks, and opportunities, Koskisen also utilised climate roadmaps

developed for the sawmill and forest industry, based on studies and scenarios prepared

by organisations such as LUKE, VTT, and ETLA. These roadmaps were particularly used

to identify different types of greenhouse gas emissions, physical climate risks affecting

the availability of wood raw material, and transition risks and opportunities influencing,

for example, the demand for wood construction, also providing direction for evaluating

the relative materiality of these factors.

Koskisen’s double materiality assessment process, on which the material topics are

based, with the exception of the G1 standard, was carried out for the first time during

2023–2024. The methodology used in the process combined research based on public

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 42

and selected internal sources, stakeholder interviews, individual technical materiality

assessments, and dedicated working group meetings. During 2025, the analysis was

reviewed in terms of identified stakeholder perspectives, business changes and peer

benchmarking.

The 2023 double-materiality assessment process was carried out in three main steps:

1 Understanding the context – reviewing internal materials (operations and business

relationships, business model and value chain), other contextual information

(sectoral framework, relevant EU sustainability regulation, peer review) and

understanding stakeholder views and interests, including stakeholder interviews.

2 Identification of actual and potential impacts, risks and opportunities (IROs) related

to sustainability issues – with reference to classification in European sustainability

reporting standards (ESRS 1, paragraph AR16). Koskisen's internal project team was

responsible for the phase.

3 Assessment and determination of material impacts, risks and opportunities related

to sustainability issues – a consolidated result of both materiality and financial

materiality, which is mainly based on Koskisen's internal assessment, observations

from stakeholder analysis and workshop work by the Executive Board.

The prioritisation and mutual materiality of the identified impacts, risks and

opportunities were assessed with Koskisen's internal project team in a browser-based

assessment tool called Inclus in accordance with the principles of ESRS 1 chapter 3 for

assessing materiality and economic materiality. The outcome of the assessment is a list

of sustainability issues that are material to Koskisen. During the process, the internal

control and risk management principles confirmed by Koskisen's Board of Directors

were followed.

The starting assumption for the impacts, risks and opportunities to be assessed was the

sustainability topics related to the business model and strategy that Koskisen had

already identified and reported. The findings were supplemented in the background

analysis phase of the process based on the topic recommendations of the most similar

established, science-based sector-specific sustainability standards, as well as

observations from the review of the reporting practices of peer companies. Based on

the background analysis, the most significant sustainability topics in the sector were

related to climate change mitigation and adaptation, the preservation of biodiversity,

the transition to a circular economy, and issues related to the working conditions of the

company's own workforce.

To support the identification and assessment of climate impacts, risks and

opportunities, the sawmill and forest industries developed climate roadmaps based on

studies and scenarios by Luke, VTT Technical Research Centre of Finland and Etla. The

roadmaps were used especially to identify different types of greenhouse gas emissions,

physical climate risks affecting the availability of wood raw material and, for example.

identifying transition risks and opportunities affecting the demand for wood

construction, and also providing guidelines for assessing their mutual materiality.

Koskisen's double materiality assessment process was carried out for the first time in

2023. The process was based on a combination of research based on public and certain

internal sources, stakeholder interviews, personal technical materiality assessments

and working group meetings.

The 2025 review process began in August and also utilised the Group-level risk

management framework as well as current perspectives gathered from the units and

based on stakeholder dialogue. The Group sustainability team carried out the

compilation and analysis of the review. In October, the Executive Board reviewed the

results of the assessment, made related clarifications and approved the updated

framework. In November, the process proceeded to the Audit Committee for review,

after which the Board of Directors approved the review as part of its decision-making

process.

Assessment of materiality of impacts

In the process of identifying and assessing material actual and potential impacts,

Koskisen’s own operations and the main features of the value chain were mapped. This

was done in order to identify activities, business relationships, geographic locations or

other factors that contribute to material sustainability impacts related to the

environment or people. 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.

Although the identification process was mainly carried out on a general level, the

assessment of Koskisen’s own operations focused on sawn timber, plywood and

chipboard operations, business relationships with similar customers and, in a

geographical sense, on Koskisen’s production plant in the municipality of Kärkölä and

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 43

its surrounding areas. Many of the identified impacts were found to be linked to

financial risks, e.g. as a result of different compensation obligations and reputational

damage. The links between different degrees of resource dependencies, such as the

availability of wood raw material and skilled labour, were also found to be associated

with potential risks.

The impacts of biodiversity-sensitive areas mainly occur on the lands of private

landowners, on which Koskisen has felling rights, which can thus be equated with site

audits. The assessment and management will focus on the impact of the actions taken

in these areas.

The assessment identified a number of negative and positive impacts on people, the

climate and the environment in which Koskisen potentially or actually participates

through its own operations or business relationships (e.g. suppliers, customers and

project contractors). The location of impacts in the value chain is described in

Koskisen’s table of material sustainability impacts, risks and opportunities.

In connection with the review, the key stakeholder representatives (e.g. Koskisen’s sawn

timber, plywood and chipboard customers, forest owners, personnel representatives

and municipal decision-makers) as well as the views of the users of the so-called

sustainability reviews (owners and financiers). The views of the impacted stakeholders

were used to identify, formulate and assess biodiversity-related impacts, risks and

opportunities. Various circular economy issues, especially related to the utilisation of

recycled materials, were emphasised in chipboard customers' views. In the 2025 review,

particular emphasis was placed on ethical business practices and the positive impacts

on stakeholders arising from transparent communication about them.

The materiality of the identified sustainability impacts was assessed in accordance with

the principles of the standards (ESRS 1, chapter 3). The assessment examined potential

or actual negative and positive impacts, as well as their scale, scope and, in the case of

negative impacts, the irreparable character of the impact. The severity of the negative

and positive impacts and the likelihood of their realisation were each assessed on a

scale of 1 to 5.

The materiality of the impacts was formed as the product of separate severity and

likelihood averages. As a result of the assessments, the mutual order of importance of

all identified impacts, risks and opportunities was determined on the basis of

materiality values, with the calculated median (11.1) serving as a quantitative threshold

for materiality.

Finally, the results were also reviewed qualitatively. Minor adjustments and

reweightings were made by consensus, based on stakeholder insights and in cases

where certain topics were judged to be unrealistically weighted in relation to Koskisen’s

overall sustainability profile. The sustainability matters considered material for

reporting purposes were determined based on the material impacts, risks, and

opportunities grouped under each topic.

As an exception, in the 2025 review the G1 standard was added to the reported topics.

This decision was not based on the calculated materiality of impacts, but on

management’s decision reflecting the need for transparent communication, primarily

based on customer needs and the prevailing practice under which the majority of

companies report this standard.

The severity of the negative and positive impacts (taking into account the scale, scope

and, in the case of negative impacts, the irremediable character of the impact), the

magnitude of the economic impacts of the risks and opportunities, and the likelihood

of their realisation were each assessed on a scale of 1–5.

Materiality of financial impacts

The materiality of the financial impacts related to sustainability risks and opportunities

was assessed in the process of determining double materiality by examining their

magnitude and likelihood of realisation.

The assessment of sustainability-related risks and opportunities was carried out for the

first time as a separate entity from Koskisen’s assessment process for other types of risks.

The 2025 review was carried out as part of the Group’s stakeholder and risk management

process. In addition, sustainability aspects are addressed as a separate entity by the

sustainability representatives of the business units within the business operations, as well

as within the sustainability team, which manages a more detailed set of actions. This

ensures that the aspects are considered as part of corporate risk management and that

the measures required to address them are identified and incorporated into the

decision-making of the business operations and, where necessary, the extended

Executive Board. The development of the process continues.

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The process took into account the links between material sustainability impacts and

financial risks and opportunities. The prioritisation and mutual materiality of the

identified impacts, risks and opportunities were assessed with Koskisen’s internal

project team in a browser-based assessment tool called Inclus in accordance with the

principles of ESRS 1 chapter 3 for assessing materiality and financial materiality.

The financial materiality of the risks and opportunities was estimated as the product of

the averages of the magnitude and likelihood assessments of the related financial

impacts. As a result of the assessments, the mutual order of importance of all identified

impacts, risks and opportunities was determined on the basis of materiality values, with

the imputed median acting as a quantitative threshold for materiality.

In the 2023 process, the magnitude and likelihood of financial impacts were estimated

from low to high (5–point scale). Actual or very likely financial impacts were given a

value of 5 (90–100% likelihood) and any short-, medium- or long-term financial impacts

were assessed on a five-point scale between 0% and 100%. Sustainability-related risk

management is part of the Group’s overall risk management and is not prioritised

separately. Monitoring of sustainability-related risks is carried out in cooperation with

the business operations and the Group sustainability team.

Finally, the results were also reviewed qualitatively. Minor adjustments and

reweightings were made by consensus, based on stakeholder insights and in cases

where certain topics were judged to be unrealistically weighted in relation to Koskisen’s

overall sustainability profile. For reporting purposes, material sustainability matters

were determined based on the material impacts, risks and opportunities identified

under each topic.

The materiality assessment is carried out as a separate process, after which the risks are

treated as part of corporate risk management (ERM) and prioritised by applying their

materiality level in the scaling of risks as described above.

Decision-making related to the assessment of sustainability impacts, risks and

opportunities is the responsibility of the company’s Executive Board under the

leadership of the CEO. The process complies with Koskisen’s normal management

system and the internal control and risk management principles approved by the

company’s Board of Directors.

The process of identifying and assessing material sustainability impacts, risks and

opportunities required by the European Sustainability Reporting Standards (ESRS) was

carried out at Koskisen for the first time in June–November 2023.

The need for materiality assessment is reviewed annually. The impacts and risks

identified in the materiality process are included in corporate risk management (ERM).

When the need for materiality assessment is identified, existing information on the

corporate risk process is used as initial data.

The process of identifying, assessing and managing opportunities is carried out as part

of the stakeholder and risk management process, the results of which are reported to

the Management Team.

The sustainability topics linked to the business model and strategy, previously

identified and reported by Koskisen, were used as the starting point for the impacts,

risks and opportunities to be assessed.

The findings were supplemented in the background analysis phase of the process

based on the topic recommendations of the most similar established, science-based

and sector-specific sustainability standards, as well as observations from the review of

the reporting practices of peer companies.

To support the identification and assessment of climate impacts, risks and

opportunities, the sawmill and forest industries’ climate roadmaps based on studies

and scenarios by Luke, VTT Technical Research Centre of Finland and Etla.

The roadmaps were used especially to identify different types of greenhouse gas

emissions, physical climate risks affecting the availability of wood raw material and, for

example, identifying transition risks and opportunities affecting the demand for wood

construction, and also providing guidelines for assessing their mutual materiality.

The identified impacts, risks and opportunities were assessed in a browser-based tool

called Inclus in accordance with the principles of ESRS 1 chapter 3. In this way, the

starting point for the quantitative materiality assessment was achieved, which was

supplemented on the basis of stakeholder views.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 45

Description of the processes to identify and assess material

climate-related impacts, risks and opportunities

ESRS E1 / IRO-1

Koskisen’s identification of climate-related impacts is based on a systematic, multi-

source assessment process that integrates information produced as part of the

environmental management system, external frameworks, and input obtained from

stakeholders. The identification has been carried out as part of environmental

management and the broader assessment of impacts, risks and opportunities, as well

as within the DMA process.

The Environmental Report 2022 served as a key starting point for the assessment of

climate impacts. The report is based on an ISO 14001-certified environmental

management system and on data required under environmental permitting, within

which environmental impacts, including climate-related impacts, are identified and

assessed as part of the management system processes. In this context, detailed

technical information on Koskisen’s operations, production processes and material

flows has been utilised.

Koskisen has screened its operations and plans to identify sources of greenhouse gas

emissions both in its own operations and across the value chain. This has been carried

out by examining key activities from raw material sourcing through production,

logistics and the use of products. Particular attention has been paid to energy-intensive

processes, the use of fuels and energy, transportation, and indirect emissions related to

the supply chain.

In addition, Koskisen has broadened its contextual understanding by analysing external

materials, such as sector-specific sustainability standards and frameworks, climate

roadmaps of industry associations, reporting practices of peer companies, and other

relevant EU sustainability regulation. These sources have been used to identify

emission sources material to the value chain and key focus areas in terms of climate

impacts.

Koskisen has assessed the actual and potential climate impacts arising from its

operations by examining the overall greenhouse gas emissions and their significance

from the perspective of climate change mitigation.

The assessment has utilised the significance evaluation of impacts in accordance with

the ISO 14001 system, as well as information from external sources on EU legislative

priorities. These include, among others, the energy efficiency benefits of products, the

impacts of forest management on natural carbon sinks, climate change mitigation in

high-impact sectors, and the transition to a circular economy, particularly in new

construction. In addition, the results of stakeholder interviews have supported the

understanding of which climate-related impacts are most material to Koskisen’s

operations.

Climate-related scenario analysis

Koskisen carried out an assessment of climate-related threats, risks and opportunities

as a scenario analysis in accordance with the TCFD framework in 2023. Key people from

the sustainability and communications team and finance, as well as people who have

expertise in carbon footprint calculation and resource circulation participated in the

implementation of the analysis. The inputs used in the process included the

assessment pursuant to the TCFD framework and the company’s assessment of

environmental impacts and international definitions of climate work. The scenario

analysis covered all of the Group’s operations, short-term, medium-term and long-term

reviews, Koskisen’s business and assets, as well as activities throughout the value chain.

The time horizon of the scenario analysis extends to 2050.

Scenarios used

SSP1-2.6: Highly effective measures to limit emissions. Global CO2 emissions should turn

to a clear decline already in the 2020s and be even slightly negative by the end of the

century. After the middle of the century, the CO2 concentration will peak at around 470

ppm, but then slowly begin to decrease. The IPCC report estimates that by the end of

this century, the global average temperature would have increased by 1.8°C

(uncertainty range 1.3–2.4°C) compared to the pre-industrial period.

SSP2-4.5: Semi-successful climate policy. CO2 emissions will initially increase slightly,

but will decline from 2040. By the end of the century, the increase in concentration in

the atmosphere will reverse and the concentration will be approximately twice as high

as the pre-industrial level. The estimated average global temperature rise at the end of

this century will be 2.7°C (2.1–3.5°C).

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 46

SSP5-8.5: Efforts to limit emissions fail completely. CO2 emissions grow rapidly, more

than tripling before the end of the century. The CO2 concentration would then increase

and even quadruple compared to the pre-industrial period, and the strong growth

would continue from 2100 onwards. The average global temperature rise at the end of

this century is 4.4°C (3.3–5.7°C).

Physical risks

The physical climate-related risks faced by Koskisen are mainly related to the

procurement of wood and the availability of wood raw material. These represent a risk

to business in the upstream value chain.

The impacts of the IPCC’s climate scenario SSP5-8.5 have been taken into account in

the assessment process of physical risks related to climate change so that the global

temperature rise would be 4.4°C. This high-risk climate scenario is a science-based

scenario that is commonly used to assess the physical risks of climate change. All

physical risks have been assessed in relation to different scenarios.

Climate-related hazards that affect the company’s operations have been identified in

accordance with the classification of climate-related hazards in Commission Delegated

Regulation (EU) 2021/2139 and the exposure of various assets and business operations to

these hazards has been assessed in the short (< 1 year), medium (1–5 years) or long term

(>5 years). Physical risks mainly concern raw material procurement, which affects the

entire business.

Koskisen’s most significant short-term physical risks are related to sudden weather-

related 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. 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.

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. 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.

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.

Transition risks and opportunities

Koskisen has not identified any assets or businesses that would not be aligned with the

carbon neutrality target in light of transition events.

The process of assessing transition risks and opportunities related to climate change

takes into account the impacts of the IPCC climate scenario SSP1-2.6 so that the global

temperature rise would be 1.8°C. This scenario is based on the assumption of successful

climate action and constitutes the lowest temperature rise scenario of the IPCC climate

scenarios. Transition risks have been identified in the short (<1 year), medium (1–5 years)

or long term (>5 years) and their effects on Koskisen’s business and assets have

been assessed.

Risks related to transition events

In the short term, immediate cost effects are particularly emphasised. 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. At the same

time, the company faces challenges related to financing, as the availability of financing

can decline and its price increase.

In the medium term, the changes required for adaptation are emphasised. The

transition to renewable energy requires significant investments, especially in transport

and harvesting equipment. 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. 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.

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Long-term risks are related to fundamental changes in the operating environment. 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. The rapid development of technology

creates uncertainty in investment decisions, as there is a risk of committing to

technology that does not prove optimum in the long term.

Opportunities related to transition events

In our own operations, improving resource efficiency offers significant opportunities in

the short and medium term. The growing demand for industrial by-products and

energy wood enables new business models. Utilising the sawmill’s own drying

capacities provides cost and material efficiency benefits. Opportunities related to

improving energy efficiency and in-house energy production, albeit with a more

moderate financial impact, support the development of operations.

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.

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. Wood products significantly store carbon and their carbon emissions in relation

to the volume of the material are low compared to mineral and steel-based building

materials. The development of new innovative products helps reduce the carbon

footprint and offers significant growth opportunities.

As a whole, Koskisen’s opportunities related to transition events particularly focus on

the development of products and services as well as improving resource efficiency.

Changes brought about by climate change can also open up new opportunities, even if

they involve uncertainties. The strengthening of the role of wood products in low-

carbon construction is particularly promising.

The climate scenarios used are consistent with the critical climate-related assumptions

presented in the financial statements.

Description of processes to identify and assess material

biodiversity and ecosystem-related impacts, risks and

opportunities

ESRS 2 / IRO 1

Koskisen has assessed the actual impacts and risks related to biodiversity and

ecosystems throughout its value chain, including its own sites. Negative impacts and

risks have been identified in the upstream value chain, in Koskisen's and private

landowners' forests where the raw material is purchased. The process for identifying

and assessing material impacts, risks and opportunities is described in the general

disclosures of the sustainability report in IRO-1 Description of the processes to identify

and assess material impacts, risks and opportunities.

The material impacts are concentrated in the upstream value chain. Koskisen’s

operations in the upstream value chain are intrinsically linked to harvesting and forest

management. These measures cause changes in land cover (the state of trees and

other vegetation and water bodies) and weaken the interconnectedness of species and

natural values, which have a wide-ranging impact on the ability of land and water areas

to maintain biodiversity. The effects are visible in different ways depending on the time

span examined.

Physical and transition risks have been identified in accordance with the double

materiality assessment described in the resilience analysis prepared by the company,

which is outlined in section E4-1.

The process of identifying and assessing material impacts, risks, and opportunities has

taken into account stakeholders affected by these impacts through interviews with a

selected group. Targeted consultations with communities affected by impacts related

to biodiversity and ecosystems have not been arranged.

Individual sites within Koskisen’s wood procurement areas, or in their vicinity, may

contain biodiversity-sensitive areas. Finnish legislation identifies habitats and protected

areas that are sensitive to forestry, but where forestry operations may be carried out in

close proximity.

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Operations taken near water bodies also have potential impacts on aquatic

ecosystems. Operating in the vicinity of these sites is regulated by law, and

requirements for operations at these site are set by certification schemes.

Koskisen operates in the vicinity of these areas in accordance with laws, forest

certification requirements and national forest management recommendations. Actions

to protect biodiversity will be implemented to prevent or mitigate the effects of the

operations, taking into account the requirements set by the EU Birds and Habitats

Directives. A key method for this is operating in compliance with the national Natura

2000 network.

IRO-1 Information related to double materiality assessment on non-

material topics

ESRS E2 Pollution

Non-material topic. Due diligence and preventive measures related to pollution are

part of the everyday operations of production plants subject to environmental permits,

which involve regular cooperation and reporting by the authorities. Koskisen has not

carried out a detailed screening of the locations of its sites and its business operations

to identify the actual and potential impacts, risks and opportunities of soil, air or other

emissions to the environment in its own operations or upstream and downstream

value chain. The topic was excluded from a more detailed assessment at an early stage

in the double materiality analysis. Therefore, no screening methods, assumptions or

tools have been defined. Based on the low materiality of the topic, the company has

not organised separate consultations on pollution in the double materiality assessment

process and has not engaged in stakeholder discussions, especially with the affected

communities.

ESRS E3 Water and marine resources

Non-material topic. The double materiality assessment did not include a detailed

survey of Koskisen’s assets and operations in order to identify impacts, risks and

opportunities related to water and marine resources in Koskisen’s own operations or

upstream and downstream value chain. The topic was excluded from a more detailed

assessment at an early stage of the process. Based on the low relevance of the topic, no

stakeholder consultations related to water and marine resources were conducted.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 49

Disclosure requirements in ESRS covered by the

undertaking’s sustainability statement

IRO-2


Disclosure Requirement and related datapoint	SFDR reference	Pillar reference	Benchmark Regulation reference	EU Climate Law (11) reference	Page number
ESRS 2 GOV-1 Board’s gender diversity paragraph 21 (d)	Indicator number 13 of Table #1 of Annex I		Commission Delegated Regulation (EU) 2020/1816, Annex II		24
ESRS 2 GOV-1 Percentage of Board members who are independent paragraph 21 (e)			Delegated Regulation (EU) 2020/1816, Annex II		24
ESRS 2 GOV-4 Statement on due diligence paragraph 30	Indicator number 10 Table #3 of Annex I				28
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i	Indicators number 4 Table #1 of Annex I	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on social risk	Delegated Regulation (EU) 2020/1816, Annex II		Not material, information reported p. 30
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii	Indicator number 9 Table #2 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii	Indicator number 14 Table #1 of Annex I		Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv			Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14				Regulation (EU) 2021/1119, Article 2(1)	68

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Disclosure Requirement and related datapoint	SFDR reference	Pillar reference	Benchmark Regulation reference	EU Climate Law (11) reference	Page number
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g)		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2		Not material
ESRS E1-4 GHG emission reduction targets paragraph 34	Indicator number 4 Table #2 of Annex I	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 6		73
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38	Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex I				75
ESRS E1-5 Energy consumption and mix paragraph 37	Indicator number 5 Table #1 of Annex I				75
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43	Indicator number 6 Table #1 of Annex I				75
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44	Indicators number 1 and 2 Table #1 of Annex I	Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1)		78

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Disclosure Requirement and related datapoint	SFDR reference	Pillar reference	Benchmark Regulation reference	EU Climate Law (11) reference	Page number
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55	Indicators number 3 Table #1 of Annex I	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 8(1)		79
ESRS E1-7 GHG removals and carbon credits paragraph 56				Regulation (EU) 2021/1119, Article 2(1)	82
ESRS E1-9 Exposure of the benchmark portfolio to climate- related physical risks paragraph 66			Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c)		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk.			Not material
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy efficiency classes paragraph 67 (c)		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2:Banking book - Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral			Not material
ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69			Delegated Regulation (EU) 2020/1818, Annex II		Not material
ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil paragraph 28	Indicator number 8 Table #1 of Annex I, Indicator number 2 Table #2 of Annex I, Indicator number 1 Table #2 of Annex I, Indicator number 3 Table #2 of Annex I				Not material

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Disclosure Requirement and related datapoint	SFDR reference	Pillar reference	Benchmark Regulation reference	EU Climate Law (11) reference	Page number
ESRS E3-1 Water and marine resources paragraph 9	Indicator number 7 Table #2 of Annex I				Not material
ESRS E3-1 Dedicated policy paragraph 13	Indicator number 8 Table 2 of Annex I				Not material
ESRS E3-1 Sustainable oceans and seas paragraph 14	Indicator number 12 Table #2 of Annex I				Not material
ESRS E3-4 Total water recycled and reused paragraph 28 (c)	Indicator number 6.2 Table #2 of Annex I				Not material
ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29	Indicator number 6.1 Table #2 of Annex I				Not material
ESRS 2 – IRO-1 – E4 paragraph 16 (a) i	Indicator number 7 Table #1 of Annex I				83
ESRS 2 – IRO-1 – E4 paragraph 16 (b)	Indicator number 10 Table #2 of Annex I				83
ESRS 2 – IRO-1 – E4 paragraph 16 (c)	Indicator number 14 Table #2 of Annex I				83
ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b)	Indicator number 11 Table #2 of Annex I				84
ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c)	Indicator number 12 Table #2 of Annex I				84
ESRS E4-2 Policies to address deforestation paragraph 24 (d)	Indicator number 15 Table #2 of Annex I				84
ESRS E5-5 Non-recycled waste paragraph 37 (d)	Indicator number 13 Table #2 of Annex I				96
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39	Indicator number 9 Table #1 of Annex I				96
ESRS 2 – SBM-3 – S1 Risk of incidents of forced labour paragraph 14 (f)	Indicator number 13 Table #3 of Annex I				99
ESRS 2 – SBM-3 – S1 Risk of incidents of child labour paragraph 14 (g)	Indicator number 12 Table #3 of Annex I				99
ESRS S1-1 Human rights policy commitments paragraph 20	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I				100
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8 paragraph 21			Delegated Regulation (EU) 2020/1816, Annex II		100
ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22	Indicator number 11 Table #3 of Annex I				100
ESRS S1-1 Workplace accident prevention policy or management system paragraph 23	Indicator number 1 Table #3 of Annex I				100

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Disclosure Requirement and related datapoint	SFDR reference	Pillar reference	Benchmark Regulation reference	EU Climate Law (11) reference	Page number
ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c)	Indicator number 5 Table #3 of Annex I				102
ESRS S1-14 Number of fatalities and number and rate of work-related paragraph 88 (b) and (c)	Indicator number 2 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		112
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)	Indicator number 3 Table #3 of Annex I				112
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)	Indicator number 12 Table #1 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)	Indicator number 8 Table #3 of Annex I				Not material
ESRS S1-17 Incidents of discrimination paragraph 103 (a)	Indicator number 7 Table #3 of Annex I				113
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a)	Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1)		113
ESRS 2 – SBM-3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b)	Indicators number 12 and n. 13 Table #3 of Annex I				Not material
ESRS S2-1 Human rights policy commitments paragraph 17	Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex I				Not material
ESRS S2-1 Policies related to value chain workers paragraph 18	Indicator number 11 and n. 4 Table #3 of Annex I				Not material
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19	Indicator number 10 Table #1 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		Not material
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8 paragraph 19			Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36	Indicator number 14 Table #3 of Annex I				Not material
ESRS S3-1 Human rights policy commitments paragraph 16	Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex I				Not material

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Disclosure Requirement and related datapoint	SFDR reference	Pillar reference	Benchmark Regulation reference	EU Climate Law (11) reference	Page number
ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17	Indicator number 10 Table #1 Annex I		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		Not material
ESRS S3-4 Human rights issues and incidents paragraph 36	Indicator number 14 Table #3 of Annex I				Not material
ESRS S4-1 Policies related to consumers and end-users paragraph 16	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I				Not material
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17	Indicator number 10 Table #1 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		Not material
ESRS S4-4 Human rights issues and incidents paragraph 35	Indicator number 14 Table #3 of Annex I				Not material
ESRS G1-1 United Nations Convention against corruption paragraph 10 (b)	Indicator number 15 Table #3 of Annex I				Not material
ESRS G1-1 Protection of whistleblowers paragraph 10 (d)	Indicator number 6 Table #3 of Annex I				Not material
ESRS G1-4 Fines for violation of anti-corruption and anti- bribery laws paragraph 24 (a)	Indicator number 17 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b)	Indicator number 16 Table #3 of Annex I				Not material

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The table below provides a list of sustainability reporting disclosure requirements, including references to the relevant page numbers.


ESRS 2 General disclosures	Page
BP-1 General basis for preparation of sustainability statements	21
BP-2 Disclosures in relation to specific circumstances	21
GOV-1 The role of the administrative, management and supervisory bodies	22
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies	27
GOV-3 Integration of sustainability-related performance in incentive plans	27
GOV-4 Statement on due diligence	28
GOV-5 Risk management and internal controls over sustainability reporting	29
SBM-1 Strategy, business model and value chain	29
SBM-2 Interests and views of stakeholders	32
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model	35
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities	41
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement	49

ESRS E1 Climate change	Page
ESRS 2 / GOV-3 Integration of sustainability-related performance in incentive plans	27
E1-1 Transition plan for climate change mitigation	68
ESRS 2 / SBM-3 Material impacts, risks and opportunities and their interaction with the strategy and business model	68
E1-2 Policies related to climate change mitigation and adaptation	69
E1-3 Actions and resources in relation to climate change policies	69
E1-4 Targets related to climate change mitigation and adaptation	73
E1-5 Energy consumption and mix	75
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions	77
E1-7 GHG removals and GHG mitigation projects financed through carbon credits	82
E1-8 Internal carbon pricing	82


ESRS E4 Biodiversity and ecosystems	Page
E4-1 Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks and opportunities	83
ESRS 2 / SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model	83
E4-2 Policies related to biodiversity and ecosystems	84
E4-3 Actions and resources related to biodiversity and ecosystems	86
E4-4 Targets related to biodiversity and ecosystems	88
E4-5 Impact metrics related to biodiversity and ecosystems change	89

ESRS E5 Resource use and circular economy	Page
ESRS 2 / IRO-1 Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities	91
E5-1 Policies related to resource use and circular economy	91
E5-2 Actions and resources related to resource use and circular economy	92
E5-3 Targets related to resource use and circular economy	94
E5-4 Resource inflows	95
E5-5 Resource outflows	96

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ESRS S1 Own workforce	Page
ESRS 2 / SBM-3 Material impacts, risks and opportunities and their interaction with the strategy and business model	99
S1-1 Policies related to own workforce	100
S1-2 Processes for engaging with own workers and workers’ representatives about impacts	102
S1-3 Processes to remedy the negative impacts and channels for own workers to raise concerns	102
S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions	103
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	107
S1-6 Characteristics of the company’s employees	108
S1-8 Collective bargaining coverage and social dialogue	110
S1-9 Collective bargaining coverage and social dialogue	111
S1-10 Adequate wages	111
S1-11 Social protection	111
S1-13 Training and skills development metrics	111
S1-14 Health and safety metrics	112
S1-15 Work-life balance metrics	113
S1-17 Incidents, complaints and severe human rights impacts	113

ESRS G1 Business conduct	Page
G1-1 Business conduct policies and corporate culture	115
G1-3 Prevention and detection of corruption and bribery	116
G1-4 Incidents of corruption or bribery	117

Definition of material information

The material information to be disclosed in the sustainability statement regarding

impacts, risks, and opportunities has been defined through the double materiality

assessment process, applying a defined materiality threshold. As an exception, in the

2025 review the G1 standard was added to the reported topics. This decision was not

based on the calculated materiality of impacts, but on management’s decision

reflecting the need for transparent communication and the fact that the majority (97%)

of peer companies report this standard.

The materiality of the identified impacts, risks, and opportunities was assessed in line

with the principles set out in the standards (ESRS 1, Chapter 3). The severity of negative

and positive impacts was evaluated based on scale, scope, and, in the case of negative

impacts, also the irremediable character. The financial magnitude of risks and

opportunities, as well as the likelihood of their realisation, were assessed on a scale

from 1 to 5.

Impact materiality was calculated as the product of the average scores for severity and

likelihood. Similarly, the financial materiality of risks and opportunities was determined

based on the magnitude and probability of their financial effects.

The results of these evaluations provided a ranking of all identified impacts, risks, and

opportunities based on their materiality scores, with a quantitative materiality

threshold defined by the calculated median value (11.1). The results were also reviewed

qualitatively. Minor adjustments and reweightings were made by consensus, based on

stakeholder insights and in cases where certain topics were judged to be unrealistically

weighted in relation to Koskisen’s overall sustainability profile.

The sustainability matters considered material for reporting purposes were determined

based on the material impacts, risks, and opportunities grouped under each topic and

are presented in the table below.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 57

Impacts, risks, and opportunities categorized by sustainability topic


Climate change	Biodiversity and ecosystems	Resource use and circular economy	Own workforce	Business Conduct
Impacts	Impacts	Impacts	Impacts	Impacts
The carbon sequestered by forests is stored long-term in Koskisen’s wood products	Negative impacts on biodiversity caused by land cover changes related to forest management and harvesting operations	Reducing natural resource depletion and advancing circular economy principles through the use of production side streams in product development	Positive impacts related to Koskisen’s position as a significant industrial employer in the surrounding area	Positive impacts of ethical conduct and corporate culture on Koskisen’s stakeholder relationships
Emissions from vehicles involved throughout the value chain (including transport of finished products)		Reducing natural resource depletion through the use of production side streams in energy and heat production	Positive impacts on employee health and well-being
Life cycle emissions from panel products, adhesives and coatings, plastics and metal raw materials		Reducing natural resource depletion and advancing circular economy through recycling	Negative effects on employee health
Emission reductions achieved through renewable energy production
Indirect greenhouse gas emissions from purchased electricity (Scope 2)
Direct greenhouse gas emissions from production facilities
Positive impacts of forest management practices on natural carbon sinks
Emission reductions through energy savings – improving energy efficiency in own operations
Development of low-emission products that enable emission reductions for the customer
Reduction of forest carbon stocks and soil carbon sinks due to harvesting and forest management activities.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 58


Climate change	Biodiversity and ecosystems	Resource use and circular economy	Own workforce	Business Conduct
Risks and opportunities	Risks and opportunities	Risks and opportunities	Risks and opportunities
Risks related to the physical impacts of climate change may disrupt the availability of raw materials	Physical risks to raw material availability caused by negative biodiversity impacts	Improved profitability through increased utilisation of side streams and recycled materials, as well as enhanced material efficiency	Risks posed by industrial action, such as strikes
Regulatory risks related to the preservation of carbon sinks (transition risks) – harvesting restrictions	Regulatory risks related to biodiversity preservation (transition risks) – restrictions on the use of natural resources	Transition risks associated with the circular economy – uncertainty around the legal classification of industrial side streams	Opportunities for a positive employer image
Opportunities related to the transition to a low-carbon society – growth in demand for wood construction and wood-based products	Voluntary biodiversity conservation measures that may reduce the availability of wood raw material (transition risks)	Resource depletion risks concerning critical inputs such as wood, water, adhesives, coatings, metals, and plastics
Opportunities for energy self- sufficiency achieved through own energy production		Circular economy transition opportunities – increased demand for renewable, wood-based products
Energy efficiency opportunities

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 59

Environmental

information

Koskisen creates value for its customers by helping

them mitigate climate change and adapt to the future

with products and services. Koskisen has committed to

continuously minimise the impact of its operations,

value chain and the full life cycle of its products on soil,

water, climate and the ecosystems.


EU Taxonomy Report .............................................................................	60
ESRS E1 Climate change .......................................................................	68
ESRS E4 Biodiversity and ecosystems .............................................	83
ESRS E5 Resource use and circular economy ...............................	91

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 60

EU Taxonomy Report

Information pursuant to Article 8 of Regulation (EU) 2020/852

(Taxonomy Regulation)

The EU Taxonomy is a classification system for sustainable economic activities based on

Regulation (EU) 2020/852 (Taxonomy Regulation), which entered into force in 2020. Its

objective is to increase the transparency of sustainable investment and to redirect

capital flows towards sustainable economic activities and technologies.

The EU Taxonomy includes a list of economic activities identified by the classification

system and their technical sustainability criteria, which are considered to contribute to

the EU’s six key environmental objectives.

1 Climate change mitigation

2 Climate change adaptation

3 Sustainable use and protection of water and marine resources

4 Transition to a circular economy

5 Pollution prevention and control

6 Protection and restoration of biodiversity and ecosystems

Companies subject to reporting obligations must disclose both the taxonomy eligibility

of their activities (activities included in the classification system) and their taxonomy

alignment. An activity is taxonomy-aligned only if it fulfils three conditions: (1) it makes a

substantial contribution to at least one of the six environmental objectives, (2) it does

no significant harm (DNSH) to the other environmental objectives, and (3) it complies

with the Minimum Safeguards ensuring the protection of human rights in the

company’s own operations and supply chain.

The majority of Koskisen’s product portfolio (sawn timber, plywood and panel products)

currently results from activities that are not included in the taxonomy classification

system and are therefore not taxonomy-eligible. However, this does not mean that

these product groups are unsustainable from the perspective of the EU Taxonomy.

Rather, the EU has not yet classified the wood products industry among the sectors

considered to generate the fastest and most significant environmental benefits

across Europe.

Koskisen has several activities that are taxonomy-eligible, meaning they are included in

the EU classification system. These include forest management services, energy

efficiency and production investments in production plants and properties, forest

biomass-based energy production, various remediation activities and certain low-

emission products.

Although these activities are recognised in the EU classification system, reporting them

as taxonomy-aligned would require detailed additional assessments and, in many

cases, independent verification.

As the share of these activities in Koskisen’s overall business is currently relatively small,

the company has not considered it proportionate, from a materiality perspective, to

initiate the process of demonstrating taxonomy alignment.

Accounting principle

Koskisen’s consolidated financial statements have been prepared in accordance with

the IFRS accounting standards approved for use in the EU (see Note [1] to the financial

statements). The taxonomy ratios have been calculated in accordance with

Commission Delegated Regulation (EU) 2021/2178 supplementing Article 8 of the

Taxonomy Regulation (Disclosure Delegated Act).

The same calculation methodology was applied as in the previous financial year. In this

report, Koskisen has not applied the reporting reliefs introduced by Commission

Delegated Regulation (EU) 2026/73 (the so-called Omnibus Regulation), the application

of which is voluntary for the 2025 financial year under the transitional provisions of that

regulation. However, in accordance with the materiality principle, the calculation has

been refined in practice so that the smallest individual investments are not separately

allocated in the reporting, although they are included in the overall totals used in the

ratio calculations.

The following principles were applied in the calculation:

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 61

• Financial ratios: Turnover, capital expenditure (CapEx) and certain operating

expenditure (OpEx) defined under the taxonomy regulation were allocated to

activities interpreted as taxonomy-eligible.

• Eligibility of expenditures: Capital and operating expenditures were considered

taxonomy-eligible when they related either to the company’s own taxonomy-eligible

activities or to taxonomy-eligible products and services procured from third parties.

• Minimum Safeguards: Compliance with Minimum Safeguards was assessed against

the interpretation guidelines set out in the Commission Notice (2024/C 211/01).

During the financial year, there were no significant changes in the interpretation of

taxonomy eligibility or in the calculation principles for financial ratios, apart from the

refinement described above.

Taxonomy assessment

Taxonomy eligibility and taxonomy alignment were determined by comparing the

activities that generated revenue and were subject to investment during Koskisen’s

financial year 2025 with the descriptions of economic activities listed in the taxonomy

and their technical screening criteria. As a large share of Koskisen’s product portfolio

currently falls outside the scope of the taxonomy, the taxonomy assessment is limited

to the following taxonomy-eligible economic activities. In accordance with the

materiality principle, the activities are presented below in order of their economic

significance for Koskisen (turnover, CapEx or OpEx).

CCM 1.3 Forest management

Forest management services provided to forest owners include activities such as soil

preparation, planting and sowing, early cleaning, tending of seedling stands and pre-

clearing. In addition, Koskisen’s timber harvesting operations generate revenue that

can be separately identified from invoicing related to timber sales carried out on behalf

of forest owners. The activity cannot yet be considered taxonomy-aligned, as the forest

management plans of the relevant forest parcels do not yet include the formal climate

benefit assessments required by the taxonomy criteria.

CCM 3.5 Manufacture of energy efficiency equipment for buildings

Exterior cladding panels, logs, external wall frame timber and battens, as well as panel

products used for doors manufactured by Koskisen from wood, are considered an integral

part of building insulation and thus of energy efficiency. These products generated

significant taxonomy-eligible turnover for the company in the financial year 2025.

However, they are not currently taxonomy-aligned, as the thermal conductivity (W/mK)

of the material exceeds the limit value defined in the technical screening criteria for

substantially contributing to climate change mitigation.

CCM 4.24 Production of heat or cooling from bioenergy

Koskisen produces heat for the Mäntsäläntie plant area entirely from wood biomass,

utilising by-products of its own processes. The operation and maintenance of the boiler

plants resulted in taxonomy-eligible operating expenditure (OpEx) during the reporting

year. However, not all data required concerning the origin of the wood biomass are

currently available, and therefore taxonomy alignment cannot yet be verified.

CE 5.3 Preparation of end-of-life products and components for reuse

During the financial year 2025, Koskisen implemented significant investments related

to the reuse and lifecycle extension of machinery and equipment. These investments

established processing operations that convert production side streams into briquettes

suitable for energy use. The project generated the largest single taxonomy-eligible

capital expenditure (CapEx) item in the reporting year. The activity cannot yet be

considered taxonomy-aligned, as it does not fulfil all technical screening criteria

required by the delegated regulation.

CCM 4.20 Cogeneration of heat or cooling and power from bioenergy

At the Tehdastie plant area, Koskisen produces heat and electricity using 98.4% wood

biomass. In exceptional situations, such as during maintenance work, fossil fuels may

also be used; however, this share has not been included in the taxonomy eligibility ratio

for operating expenditure (OpEx). As all required data concerning the origin of the

wood biomass are not yet available, the activity is reported as taxonomy-eligible only.

CCM 5.1 Construction, expansion and operation of water collection,

treatment and supply systems

During the financial year 2025, Koskisen completed an investment in base and

stormwater treatment systems at the new log yard of the Sawn Timber Industry

operations. This resulted in significant taxonomy-eligible capital expenditure (CapEx)

and a smaller amount of operating expenditure (OpEx) related to maintenance. The

technical energy consumption data required to demonstrate taxonomy alignment

were not yet available.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 62

CE 3.2 Renovation of existing buildings

During the financial year 2025, Koskisen carried out maintenance and renovation

activities related to factory and office buildings that are taxonomy-eligible. These

resulted in both capital expenditure (CapEx) and operating expenditure (OpEx). The

largest individual renovation investments included the repair of the plywood factory

roof, renovation work at the sawn timber grading facility storage and refurbishment of

the Panel Industry dispatch area. Operating expenditure consisted mainly of ongoing

maintenance of several factory and office buildings. Taxonomy alignment cannot yet be

demonstrated, as the Global Warming Potential (GWP) is not systematically calculated

for all building renovation projects.

CCM 7.3 Installation, maintenance and repair of energy efficiency equipment

During the financial year 2025, Koskisen implemented several energy efficiency

investments at its production facilities, resulting in taxonomy-eligible capital

expenditure (CapEx) and related operating expenditure (OpEx). These included the

construction of a district heating pipeline connecting factory areas, the installation of a

new compressed air system and compressors at the plywood plant, and the installation

of energy-efficient LED lighting in several production halls. Taxonomy alignment

cannot yet be demonstrated, as compliance with all technical screening criteria related

to Do No Significant Harm (DNSH) cannot currently be verified due to missing data.

CCM 7.7 Acquisition and ownership of buildings

During the financial year 2025, Koskisen acquired buildings associated with the new log

yard of the Sawn Timber Industry operations, resulting in taxonomy-eligible capital

expenditure (CapEx). However, the buildings lack the energy efficiency data required

for taxonomy alignment.

CE 4.1 Provision of data-driven IT/OT solutions

During the financial year 2025, Koskisen invested in new data-driven solutions and the

use of artificial intelligence in its production processes, resulting in taxonomy-eligible

capital expenditure (CapEx). These included an AI-based measurement system for chip

size and shape to optimise adhesive dosing and an AI-controlled system at the plywood

dryer to reduce raw material waste. The purpose of these measures is to improve

resource efficiency and support the transition to a circular economy. Taxonomy

alignment cannot yet be verified, as all required validation data for data-driven IT/OT

solutions promoting circular economy objectives are not yet available.

CCM 3.6 Manufacture of other low carbon technologies

The production capability previously established by Koskisen for the Zero furniture

panel, together with the related lignin adhesive silo investment at the chipboard plant,

entered the commercial phase during the financial year 2025, generating taxonomy-

eligible turnover. In the Zero panel, wood-based lignin replaces the fossil-based binder

traditionally used in similar products. The panel is a lower-emission alternative to

conventional furniture panels and has therefore been interpreted as corresponding to

the manufacture of other low carbon technologies under the taxonomy. However, full

taxonomy alignment cannot yet be confirmed due to missing verification data.

PPC 2.4 Remediation of contaminated sites and areas

Koskisen carries out groundwater remediation activities in Järvelä, and the associated

operating expenditure (OpEx) is considered taxonomy-eligible. The activity does not

meet the EU Taxonomy alignment criteria and is therefore not Taxonomy-aligned. The

activity addresses long-term environmental impacts resulting from a sawmill fire in

1976. The contamination was caused by the wood preservative KY-5 used to prevent

blue stains in sawn timber, which entered the soil through chlorophenol-containing fire

extinguishing water. Groundwater remediation was initiated independently in 2012

using a method developed in cooperation with Afry Finland Oy.

CCM 4.1 Electricity generation using solar photovoltaic technology

A solar power field is located at Koskisen’s Tehdastie plant area. The maintenance of the

solar installation generated taxonomy-eligible operating expenditure (OpEx) during the

reporting year. Not all verification data required for taxonomy alignment are currently

available.

Avoidance of double counting

The EU Taxonomy requires reporting entities to disclose how they have avoided double

counting when allocating shares of turnover, capital expenditure (CapEx) and certain

operating expenditure (OpEx) to taxonomy-eligible and taxonomy-aligned economic

activities.

The activities listed above correspond to cost and income items associated with

business areas and projects that are monitored separately in Koskisen’s accounting.

This systematic monitoring ensures that financial figures can be allocated precisely and

only once to the parts of operations considered taxonomy-eligible.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 63

If a specific activity could be considered taxonomy-eligible from the perspective of

contributing to more than one environmental objective, the environmental objective

that best reflects the nature of the activity has been selected. The numerator of the

relevant financial ratio has therefore been allocated entirely to that activity, thereby

preventing double reporting between different environmental objectives.

Minimum Safeguards

By Minimum Safeguards, the Taxonomy Regulation refers to procedures implemented

by companies to ensure that their operations and supply chains comply with:

(a) the OECD Guidelines for Multinational Enterprises

(b) the UN Guiding Principles on Business and Human Rights (UNGP)

and Rights at Work

(d) the Universal Declaration of Human Rights of the United Nations

In practice, compliance with these principles requires the company to have appropriate

administrative processes and due diligence procedures in place to ensure respect for

human rights and good working conditions, prevent corruption and bribery, safeguard

fair competition and ensure tax compliance. It also requires that neither the company

nor its management has been convicted of illegal activities related to these matters.

Koskisen and its management have not been subject to convictions related to the

matters described above. The Group’s governance structures, practices and controls are

designed to identify human rights and environmental risks and to prevent, mitigate

and, where necessary, remediate negative impacts. Koskisen invests in several key

areas of social responsibility, including occupational safety, employee well-being and

maintaining fair and reliable partnerships with customers and forest owners.

Negative impacts are addressed systematically through the company’s Code of

Conduct, supplier requirements and risk assessments. Various indicators related to

occupational safety and customer satisfaction are monitored continuously.

Stakeholders also have access to an anonymous whistleblowing channel for reporting

suspected violations.

A more detailed description of Koskisen’s procedures is presented in sections of this

Sustainability Statement covering business conduct (ESRS G1), own workforce (ESRS S1)

and the company’s sustainability due diligence processes.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 64

PROPORTION OF TURNOVER FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES

Substantial contribution criteria

DNSH criteria (Does Not Significantly

Harm)

Economic activities

Code(s)

Absolute turnover

Proportion of

turnover, 2025

Climate change

mitigation

Climate change

adaptation

Water and marine

resources

Pollution

Circular economy

Biodiversity and

ecosystems

Climate change

mitigation

Climate change

adaptation

Water and marine

resources

Pollution

Circular economy

Biodiversity and

ecosystems

Minimum safeguards

Proportion of

turnover, 2024

Category (enabling

activity)

Category (transitional

activity)

MEUR

Y/N

A.TAXONOMY-ELIGIBLE ACTIVITIES

A.1 Environmentally sustainable activities (Taxonomy-aligned)

Turnover of environmentally sustainable activities (Taxonomy-

aligned) (A.1)

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

Y/N

Forest management

CCM 1.3.

23.3

6.6%

7.0%

Manufacture of energy efficiency equipment for

buildings

CCM 3.5.

9.8

2.8%

2.6%

Manufacture of other low-carbon technologies

CCM 3.6.

0.1

Turnover of Taxonomy-eligible but not environmentally

sustainable activities (not Taxonomy-aligned activities)

(A.2)

33.2

9.3%

9.6%

A.Turnover of taxonomy eligible activities

(A.1+A.2)

33.2

9.3%

9.6%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Turnover of Taxonomy-non-eligible activities

321.8

90.7%

TOTAL

354.9

100%

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 65

PROPORTION OF CAPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES

Substantial contribution criteria

DNSH criteria (Does Not Significantly

Harm)

Economic activities

Code(s)

Capital expenditure

Share of capital

expenditure, 2025

Climate change

mitigation

Climate change

adaptation

Water and marine

resources

Pollution

Circular economy

Biodiversity and

ecosystems

Climate change

mitigation

Climate change

adaptation

Water and marine

resources

Pollution

Circular economy

Biodiversity and

ecosystems

Minimum safeguards

Share of capital

expenditure, 2024

Category (enabling

activity)

Category (transitional

activity)

MEUR

Y/N

A.TAXONOMY-ELIGIBLE ACTIVITIES

A.1 Environmentally sustainable activities (Taxonomy-aligned)

CapEx of environmentally sustainable activities

(Taxonomy-aligned) (A.1)

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

Y/N

Renovation of existing buildings

CE 3.2.

0.7

3.1%

2.9%

Construction, extension and operation of water

collection, treatment and supply systems

CCM 5.1

0.8

3.4%

1.5%

Preparation for re-use of end-of-life products and

product components

CE 5.3

1.2

5.0%

Acquisition and ownership of buildings

CCM 7.7

0.1

0.5%

1.1%

Installation, maintenance and repair of energy

efficiency equipment

CCM 7.3.

0.7

2.9%

0.4%

Manufacture of other low-carbon technologies

CCM 3.6

0.3%

Provision of IT/OT data-driven solutions

CCM 4.1.

0.1

0.4%

0.3%

CapEx of Taxonomy eligible but not environmentally

sustainable activities (not Taxonomy-aligned activities)

(A.2)

3.6

15.4%

6.6%

A.CapEx of Taxonomy eligible activities (A.1+A.2)

3.6

15.4%

6.6%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

CapEx of Taxonomy eligible activities

19.8

84.6%

TOTAL

23.4

100%

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 66

PROPORTION OF OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES

Substantial contribution criteria

DNSH criteria (Does Not Significantly

Harm)

Economic activities

Code(s)

Operating

expenditure

Share of operating

expenditure, 2025

Climate change

mitigation

Climate change

adaptation

Water and marine

resources

Pollution

Circular economy

Biodiversity and

ecosystems

Climate change

mitigation

Climate change

adaptation

Water and marine

resources

Pollution

Circular economy

Biodiversity and

ecosystems

Minimum safeguards

Share of operating

expenditure, 2024

Category (enabling

activity)

Category (transitional

activity)

MEUR

Y/N

A.TAXONOMY-ELIGIBLE ACTIVITIES

A.1 Environmentally sustainable activities (Taxonomy-aligned)

OpEx of environmentally sustainable activities (Taxonomy-

aligned) (A.1)

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

Y/N

Cogeneration of heat/cool and power from

bioenergy

CCM 4.20.

1.1

7,9

10.5%

Production of heat/cool from bioenergy

CCM 4.24.

1.5

10.1 %

10.3%

Renovation of existing buildings

CE 3.2.

0.2

1.6%

1.3%

Forest management

CCM 1.3.

0.1%

0.5%

Remediation of contaminated sites and areas

PPC 2.4.

0.1

0.4%

0.5%

Construction, extension and operation of water

collection, treatment and supply systems

CCM 5.1.

0.2%

0.3%

Manufacture of other low-carbon technologies

CCM 3.6.

0.1%

Installation, maintenance and repair of energy

efficiency equipment

CCM 7.3.

0.2%

OpEx of Taxonomy eligible but not environmentally

sustainable activities (not Taxonomy-aligned activities) (A.2)

2.9

20.4%

23.5%

A.OpEx of Taxonomy eligible activities (A.1+A.2)

2.9

20.4%

23.5%

B.TAXONOMY-NON-ELIGIBLE ACTIVITIES

OpEx of Taxonomy-non eligible activities

11.5

79.6%

TOTAL

14.4

100%

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 67

Additional information about taxonomy ratios

Absolute turnover

The taxonomy-eligible turnover for the financial year 2025 consisted of invoicing in

accordance with customer agreements for products and services identified by the

company as taxonomy-eligible. This constitutes the numerator of the financial ratio.

The denominator of the ratio is the total revenue of the Koskisen Group for the financial

year 2025.

A more detailed breakdown of the Group’s revenue is presented in Note 2 to the

Financial Statements: Segment information and revenue.

Capital expenditure (CapEx)

The taxonomy-eligible capital expenditure (CapEx ratio numerator) consists of additions

to tangible and intangible assets related to activities assessed as taxonomy-eligible

during the financial year 2025. These additions are calculated before depreciation,

impairment and remeasurements and do not include changes in fair value. Total capital

expenditure (the denominator of the CapEx ratio) includes additions recognised on the

balance sheet during the financial year to property, plant and equipment, intangible

assets, and right-of-use assets arising from leases, before depreciation, impairments and

revaluations, and changes in fair value. The denominator of the CapEx ratio includes the

total capital expenditure of the Koskisen Group for the financial year. During the

financial year, Koskisen did not have a formal CapEx plan aimed at expanding

taxonomy-aligned economic activities or converting taxonomy-eligible activities into

taxonomy-aligned activities in the future.

Further details of the Group’s total capital expenditure are presented in Notes 12

Property, plant and equipment, 14 Lease agreements and 15 Intangible assets to the

Consolidated Financial Statements.

Operating expenditure (OpEx)

The taxonomy-eligible share of the operating expenditure (OpEx) referred to in the

Delegated Act supplementing the EU Taxonomy Regulation includes non-capitalised

costs that are essential for the continuity of activities assessed as taxonomy-eligible.

These include maintenance and repair of buildings, machinery and equipment, short-

term lease contracts, and research and development expenses. The denominator of the

OpEx ratio includes the corresponding operating expenditure of the Koskisen Group for

the financial year 2025 as defined in the Taxonomy Regulation.

During the financial year 2025, the Koskisen Group did not carry out economic activities

related to nuclear energy or fossil gas-based energy production within the meaning of

Commission Delegated Regulation (EU) 2022/1214.

ACTIVITIES IN THE FOSSIL GAS AND NUCLEAR ENERGY SECTORS


Line	Nuclear energy-related activities
1	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	NO
2	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	NO
3	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	NO


Line	Fossil gas-related activities
4	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	NO
5	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	NO
6	The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cooling using fossil gaseous fuels.	NO

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 68

ESRS E1 Climate change

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.

During the preparation process, Koskisen has discussed the areas required by the

transition plan and the related disclosure requirements in detail.

The strategy and sustainability programme approved by the company’s Board of

Directors in 2024 includes measurable targets for mitigating climate change, but does

not yet include target values for reducing greenhouse gas emissions in accordance

with the Paris Agreement for 2030 and 2050.

Material impacts, risks and opportunities and their

interaction with the strategy and business model

ESRS 2 / SBM-3

Koskisen has carried out a climate change resilience analysis to assess the exposure of

business operations and assets to the impacts of climate change. The climate change

resilience analysis carried out aims to take into account all relevant functions

throughout the value chain and no material physical or transition risks have been

excluded. Material physical risks and transition risks are described in the table in the

ESRS 2 IRO-2 section.

The identification of risks related to climate change began in autumn 2023, and the

work on the scenario and resilience analysis continued in autumn 2024. The resilience

analysis has been carried out by the Group sustainability team. With regard to the

identified physical risks and transition opportunities and risks, activities and assets

affected by them have been specified and risk mitigation measures have been

described.

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 low-

carbon materials in Koskisen’s customer segments. 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.

The time horizons used in the resilience and scenario analysis are short term (< 1 year),

medium term (1–5 years) and long term (> 5 years). The time horizons are similar to

those for the assessment of climate-related physical and transition-related risks, but

differ from the target year 2027 of the emission reduction targets set in Koskisen’s

sustainability programme.

The mitigation measures have been reviewed in relation to the results of the double

materiality analysis, but no review of resources has been carried out for individual

measures.

The resilience analysis does not include any significant uncertainties, and the activities

do not include any assets or business activities at risk that would have been specifically

taken into account in defining the company’s strategy, investment decisions and

current and planned mitigation measures.

Koskisen’s business model and strategy are structurally well positioned to adapt to

climate change in the short, medium and long term. High adaptability is based on

three key factors: an integrated operating model and its continuous development

through investments, a renewable main raw material and its sustainable sourcing, and

low-carbon end products. Koskisen also has long-term expertise and know-how in its

own operations and value chain, which is actively utilised as the operating

environment changes.

The integrated operating model covers the value chain from forest management to

final products. This enables flexible adaptation to changing conditions and efficient use

of resources. 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. 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. The most significant uncertainties related to strategy and business adaptation

are related to significant changes in the political operating environment and

regulation.

Policies related to climate change mitigation and adaptation

E1-2

Koskisen’s policies and environmental principles, which apply to Koskisen’s operations

and geographical locations as a whole, define the company’s commitment to the goals

and actions that are used in its operations and value chain to mitigate climate change,

promote adaptation to climate change and increase the use of renewable energy in

relation to the material impacts, risks and opportunities identified in the double

materiality process.

In accordance with its operating policy, Koskisen is committed to continuously

reducing the impact of its operations, value chain and products on climate, soil, water

and ecosystems throughout their life cycle from the point of view of climate change

mitigation. Koskisen develops products and production processes that take these

principles into account throughout the value chain and product life cycle. The climate

and environmental impacts of wood products and our own operations as well as

carbon sequestration capacity are well known.

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. Koskisen does not tolerate

deforestation in its supply chain.

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. Koskisen

promotes a material-efficient circular economy in which wood raw material is used

down to the last particle of sawdust.

Both the operating policy and environmental principles have been approved by the

company’s Board of Directors. The executives of the Group and the business units

belonging to the company’s Executive Board are responsible for their implementation

and reporting to the Board of Directors. Stakeholder perspectives have been taken into

account in the preparation of the principles as part of the double materiality analysis,

on the basis of which the update work has been carried out. The environmental

principles are available to stakeholders on the company’s website at Policies and

principles – Koskisen.

Actions and resources in relation to climate change policies

E1-3

Koskisen’s key measures to mitigate climate change during the reporting year 2025

focused primarily on improving energy efficiency and modernising production in

Koskisen’s own operations at the Järvelä sites in accordance with the investment plan.

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.

In the panel industry, an investment in a sheeting and cutting line for special coatings

reduces material waste as well as emissions from transportation, as products no longer

need to be transported separately for coating.

Optimisation of transport sizes has been implemented in both the panel and sawmill

industries. The load factor of transports has been improved, for example through higher

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 70

bundle heights and mixed loads, which has reduced the number of transports and the

emissions arising from them. For customers purchasing regularly, empty cargo space

has been filled by an estimated approximately 100 m³ per year. In the sawmill industry,

increasing and ensuring trailer load factors further improves transport efficiency.

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. The pilot results indicate that the

utilisation of recycled wood can be economically viable and create added value. The

aim is to integrate the solution into normal production once the permit process has

been completed in early 2026. At the same time, preparations are made for possible

future regulatory requirements concerning the use of recycled materials.

The launch of Zero ThinPly thin plywood in Hirvensalmi enables customers to use fossil-

free products and increases customers’ carbon handprint. However, the product is still

in the launch phase and has not yet had a significant impact on sales.

In the Järvelä sawmill industry, the introduction of a new log yard and log sorter has

eliminated the need to transport logs between the panel and sawmill industries in

Järvelä. Logs are now transported directly to the sawmill, whereas previously they were

measured at the panel industry log yard and transferred from there to the sawmill. The

removal of transportation between Mäntsäläntie and Tehdastie significantly reduces

transport emissions. The annual emission reduction is approximately 600 tCO₂e of

which 310 tCO₂e results from the reduction in transfer truck traffic and 290 tCO₂e from

the elimination of loading and unloading.

The briquette plant in the sawmill industry improves transport efficiency by

compressing planer shavings into denser briquettes. Thanks to briquetting, a full trailer

combination can carry approximately 4–5 times more material compared with loose

planer shavings, which significantly reduces transport costs and emissions. In addition,

the processed product achieves a higher sales price than unprocessed raw material.

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. The loader is estimated to accumulate approximately 3,000 operating hours

per year, reducing fuel oil consumption by around 40,000 litres annually. The machine

is used in site maintenance and in the handling of by-products such as bark and

sawdust.

Renewable fuel oil has been introduced in the forklifts used in the sawmill industry,

reducing fossil emissions. In addition, the oil boilers in forklift maintenance halls have

been replaced with lower-emission district heating.

The packaging plastic used in the sawmill industry has been made thinner and

supplemented with recycled material, reducing the amount of packaging material

used as well as emissions from product manufacturing.

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.

The acquisition of the Iisveden Metsä business expands the wood procurement area,

particularly in birch-dominated regions, and forms part of preparations for future

challenges related to raw material availability, including the impacts of climate change.

At the same time, it reduces dependence on external suppliers regarding the

availability of birch.

Energy-related actions addressing negative and positive impacts, as

well as financial opportunities

As part of the Järvelä panel industry investment programme, modernisation of the

veneer dryer, renewal of the coating line of the plywood production line and

replacement of lighting with LED lighting were implemented in 2025. These measures

reduced energy consumption and improved energy efficiency.

Loimua Oy, which operates heat production for the production sites in Järvelä,

constructed a district heating pipeline connecting Koskisen Oyj’s Mäntsäläntie and

Tehdastie production sites. The pipeline entered trial operation at the end of 2025. The

majority of the costs will be realised in 2026. The connection pipeline covers the

increased energy demand of the sawmill industry, ensures the sufficiency of heat

energy in disturbance situations and improves delivery reliability of sawn timber. Heat

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 71

energy consumption has increased with the capacity of the new sawmill, and the

additional energy enables future increases in sawing production from the current level

of 400,000 m³.

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. At the same time, unused capacity

can be utilised more efficiently, improving overall energy efficiency.

These measures have required significant operational expenditure (OpEx) and/or

capital expenditure (CapEx). In some cases, the company has not yet estimated the

anticipated emission reductions. The ability to implement the measures does not

depend on the availability of resources. Realised emission reductions have not yet been

calculated for all measures. The total reductions are presented in connection with

section E1-4 Targets related to climate change mitigation and adaptation.

Resources for implementing the measures are determined on an action-by-action basis

either as capital expenditure or operating expenditure. The resources allocated to the

measures are included in the Group’s financial reporting as investments and operating

expenses according to the nature of the activities. Financial information is presented in

the EU Taxonomy Report, which describes the taxonomy-eligible and taxonomy-

aligned capital and operating expenditures related to sustainability-promoting

measures. The Taxonomy Report serves as a link between the actions described in the

Sustainability Statement and the corresponding financial indicators (CapEx and OpEx).

Capital expenditure presented in the Taxonomy reporting and allocated to the actions

covers the key projects that meet the Taxonomy-alignment criteria. These include the

briquetting plant, the transition to LED lighting and the district heating pipeline

between Mäntsäläntie. For these projects, the CapEx amounts presented in the

Taxonomy disclosures are consistent with the allocated expenditure presented in the

table in the sustainability statement. Not all actions presented in the table are included

in the Taxonomy reporting, as they are not within the scope of the EU Taxonomy.


Key actions	Implementation schedule	Decarbonisation lever	Geographical location	Allocated expenditures t€ 2025
Modernisation of the veneer dryer at the Järvelä Panel Industry	Implemented in the reporting year 2025	Energy and material efficiency	Own operations	1 744
Renewal of the coating line of the plywood production line at the Järvelä Panel Industry	Implemented in the reporting year 2025	Energy and material efficiency	Upstream value chain	545
Transition to LED lighting at the Järvelä Panel Industry	Implemented in the reporting year 2025	Energy efficiency	Own operations	167
Briquette plant at the Järvelä Sawmill Industry	Implemented in the reporting year 2025	Emission reduction actions in value chain logistics	Downstream value chain	1 183
Integration of the district heating networks of the Järvelä Panel and Sawmill Industry operations	Implementation during 2025–2026	Energy efficiency	Own operations	229
Sheeting and cutting line for specialty coatings at the Järvelä Panel Industry	Implemented in the reporting year 2025	Material efficiency	Upstream value chain	576
Product launch of Zero thin veneer plywood at Hirvensalmi	Implemented in the reporting year 2025	Low-carbon products	Upstream value chain	N/A 2025
Introduction of phenolic adhesive with a 10% lignin substitution	Implemented in the reporting year 2025	Low-carbon products	Upstream value chain	N/A 2025
Optimisation of transport sizes to increase and ensure trailer load factors	Implemented in the reporting year 2025	Emission reduction actions in value chain logistics	Upstream value chain	N/A 2025

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 72


Key actions	Implementation schedule	Decarbonisation lever	Geographical location	Allocated expenditures t€ 2025
Recycled material pilot in particleboard production	Implemented in the reporting year 2025	Low-carbon products	Upstream value chain	N/A 2025
Use of renewable fuel oil for forklifts at the Järvelä Sawmill Industry	Implemented in the reporting year 2025	Replacing fossil energy sources	Upstream value chain	N/A 2025
Pilot trial of an electric wheel loader by a contractor at the Järvelä Sawmill Industry	Implemented in the reporting year 2025	Emission reduction actions in value chain logistics	Upstream value chain	N/A 2025
New log yard at the Järvelä Sawmill Industry, eliminating internal transfer traffic	Completed in the reporting year 2025	Emission reduction actions in value chain logistics	Upstream value chain	N/A 2025
Reduction of packaging plastic thickness and increased use of recycled material in Sawmill Industry packaging	Implemented in the reporting year 2025	Material efficiency	Upstream value chain	N/A 2025
Replacement of oil boilers in forklift maintenance halls with district heating at the Järvelä Sawmill Industry	Implemented in the reporting year 2025	Replacing fossil energy sources	Own operations	N/A 2025
Participation in the MESI Forest Companies project on the electrification of timber transport	Implemented in the reporting year 2025	Emission reduction actions in value chain logistics	Upstream value chain	N/A 2025

Koskisen is planning future actions related to climate change mitigation and

adaptation. The action plan has been under preparation since 2024 and will be

completed during 2026, in connection with which the dependency of the measures on

the availability and allocation of financial resources will be assessed and the availability

of sufficient resources for implementation will be ensured.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 73

Targets related to climate change mitigation and adaptation

E1-4

Koskisen set targets related to climate change mitigation, energy efficiency and

renewable energy in its sustainability programme published in 2024.

The targets of Koskisen’s sustainability programme are described in the table below.

The targets of the sustainability programme correspond to the objectives of the Code

of Conduct. The emission reduction targets have been set to follow and aim towards

the goal of limiting global warming to 1.5 degrees Celsius, in alignment with the Paris

Agreement and reflecting the scientific recommendations of the Intergovernmental

Panel on Climate Change (IPCC).

The goals and objectives of Koskisen’s sustainability programme are based on the

double materiality analysis carried out by the company, in which its stakeholders were

involved. No stakeholders were involved in setting separate climate-related targets.

Through continuous actions related to reducing energy consumption and improving

energy efficiency, the targets have been achieved. Progress continues towards the

target for increasing the share of renewable energy. Monitoring of the targets is

presented in the table below.


Targets	Target for 2027	Base year 2022	Actual 2025	Actual 2024	Location and geographical boundary
Reduction of energy consumption, and energy efficiency	-5% MWh/m³ compared to base year 2022	0.6 MWh/m³	0.49 MWh/m³	0.54 MWh/m³	Own operations in all geographical locations
Reduction of energy consumption, and energy efficiency	-5% MWh/EUR million compared to base year 2022	1,143 MWh/EUR million	1,025 MWh/EUR million	1,093 MWh/EUR million	Own operations in all geographical locations
Increased use of renewable energy	99%	96%	98%	97%	Own operations in all geographical locations
Reducing emissions from own operations	-50% tC02eq compared to base year 2022	Market-based 2022: 22,252 tCO2ekv.	Market-based 2025 : 6,646 tCO2ekv.	Market-based 2024: 6,195 tCO2ekv.	Own operations in all geographical locations
Reduction of value chain emissions	-20 tC02eq compared to base year 2022	168,560 tCO2eq	187,346 tCO2ekv.	160,990 tCO2eq	Upstream and downstream value chain
Increasing the carbon handprint	+30% compared to base year 2022	310,754 tCO2ekv.	358,588 tCO2ekv.	272,376 tCO2ekv.	Own operations and downstream value chain
¹ The target for reducing emissions from own operations has been refined to apply only to the market-based figure.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 74

The emission targets set are consistent with the Scope 1, 2, and 3 emissions categories

of the GHG Protocol used in Koskisen’s greenhouse gas emissions reporting. Scope 1

and 2 are included in the common target and have not been separated in the target

setting. For the Scope 3 target, the reduction target of -20% includes all reportable

categories in their entirety. All emission categories are included in the targets and the

categories are presented in section E1-6. The base year is 2022.

The company’s greenhouse gas emission targets are not fully comparable with the

base year in all respects. The base year for all targets has been defined as 2022, while

the emission reduction targets have been set for 2027. The figures for 2022 have not

been validated in accordance with the Sustainability Statement. When setting the

baseline values, care was taken to ensure that they do not include anomalies resulting

from, for example, exceptional weather conditions, production volumes or energy

procurement.

As a result of the business acquisition carried out during the reporting period, the

comparability between the targets and the base year does not fully reflect the current

business structure. The impact of the business acquisition on emission development

will be assessed in relation to the current targets. During the reporting year, no

changes were made to the CO₂ emission targets, as the company intends to assess the

impact of the new business on emissions before making any potential revisions.

In addition, the emission calculations for the base year and the reporting year are not

fully comparable, as the 2022 emission figures were not calculated using the updated

emission factors applied in the reporting year calculation. The updated emission factors

have an impact on the final calculation results.

The company will assess the relevance of its emission reduction targets and the need

for potential updates during 2026, taking into account the effects of the business

acquisition as well as the calculation results based on the updated emission factors.

Koskisen’s greenhouse gas emission reduction targets do not yet include an approved

roadmap for the long-term targets for 2030 and 2050, which is why they cannot yet be

considered compatible with the 1.5 degrees Celsius target or based on climate science.

The target has been set based on the company’s own analysis without an external

transition pathway. The objectives take into account the assumptions presented in

Koskisen’s strategy regarding the development of the operating environment and

Koskisen’s business. Koskisen expects sustainability, urbanisation and the development

of trade and transport to support the growth of demand for sustainable wood-based

materials and products. Koskisen also assumes that it will be able to further improve

the energy and material efficiency of its operations by developing synergistic business

operations, the circular economy and the integrated operating model. Koskisen’s goal

of creating new innovative lower-carbon, energy- and material-efficient wood-based

products has also been taken into account. These factors are assessed to separately and

together support the achievement of the emission reduction targets. The actual

roadmap and calculations for the emissions development pathway is not ready, even

though the work has started.

The decarbonisation levers and their quantification are a key part of Koskisen’s future

transition plan for climate change mitigation. Its preparation has begun and the

company plans to implement it during 2026. Koskisen’s goal is to present the specified

decarbonisation levers and the estimated impacts in the 2026 sustainability report. The

key decarbonisation measures currently identified and their indicative role in reducing

greenhouse gas emissions are presented below.

Energy efficiency

Improving energy efficiency is achieved by optimising production processes and

modernising equipment, thereby reducing electricity and fuel consumption per unit of

product. Emission reductions result from more efficient energy use, which directly

lowers Scope 1 and Scope 2 emissions arising from energy consumption in operations.

The measures can be applied across all operations, and investments in energy-efficient

technology represent a key means of reducing emissions.

Replacing fossil energy sources

Emissions are reduced by replacing fossil fuels with bio-based fuels, renewable energy

and electrification, or by switching energy production and logistics to other energy

sources. Emission reductions are based on reducing or eliminating the use of fossil

energy sources in own operations, which directly lowers Scope 1 emissions. In addition,

switching to renewable electricity lowers the emission factor of purchased energy and

reduces Scope 2 emissions without changes to the total amount of energy consumed.

Low-carbon products

Emissions in the panel industry in particular are reduced by developing raw material

choices, especially in adhesives and coating materials, where fossil-based products are

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 75

replaced with bio-based or otherwise lower carbon footprint solutions. Emission

reductions are achieved through supplier cooperation, material development and,

where necessary, supplier changes. These measures reduce the average emission

factor of purchased chemical raw materials or reduce their usage volumes, thereby

lowering Scope 3 emissions generated in the value chain.

Material efficiency

Material efficiency is improved by enhancing the use of raw materials in production

processes and reducing material losses and the amount of waste generated. Emission

reductions arise from reduced overall consumption of raw materials, which decreases

value chain emissions, particularly those resulting from raw material production and

transport. Improving the utilisation rate of wood raw material, for example in

connection with production investments, lowers material-related emission intensity

while also delivering significant economic benefits. The impacts of these measures are

mainly reflected in Scope 3 emissions.

Emission reduction actions in value chain logistics

Logistics emissions are reduced by directing the procurement of transport and

contracting services towards lower-emission solutions and by developing energy-

efficient operating practices in cooperation with service providers. Emission reductions

are based on optimising transport modes, introducing low-emission equipment and

utilising alternative fuels. In addition, energy-efficient and low-emission working

methods are promoted in contracting services. These measures reduce the emission

intensity of transport and purchased services and target Scope 3 emissions generated

in the value chain.

According to the company’s preliminary assessment, the measures described above

form the main basis for reducing the company’s greenhouse gas emissions and

support the achievement of the emission reduction targets set. Some of the measures

require further assessments, pilots or market development. Quantitative estimates will

be refined as the transition plan and related potential investment decisions are

completed and progress. The information will be updated as part of the preparation

and monitoring of the transition plan. Koskisen will describe the climate scenarios used

and the conclusions made about the operating environment in the same context.

Energy consumption and mix

E1-5

Energy consumption includes direct and indirect energy used at Koskisen’s locations.

The reported energy quantities are primarily based on measured data as well as invoice

and measurement data provided by external suppliers. Energy consumption is

presented in megawatt hours (MWh).

For liquid fuels, the quantity used is measured in litres or by weight and converted into

energy quantities using generally accepted and appropriate conversion factors. For

other fuels, the energy quantities are determined based on fuel-specific average values

and the applicable conversion factors.

For the power plants operating in connection with Koskisen’s Järvelä operations, the

quantities of fuels are weighed at the time of feeding them into the power plant. The

energy content of fuels is calculated separately for each fuel type. The moisture content

of wood-based fuels has been determined by external research institutes based on fuel

samples, and dry heat values have been specified for them, enabling the calculated

energy content of the fuel to be determined. The efficiency of the power plants is

calculated by comparing the calculated energy content of the fuel with the metered

amount of energy produced.

For purchased energy, such as electricity and heat, the energy quantities are based on

invoice and measurement data received from suppliers. Energy consumption is

allocated to the reporting period according to the time of consumption.

Energy intensity is calculated by relating total energy consumption to the production

volume of the reporting period. The production volume is based on the Group’s internal

production data and is presented as a volume unit (m³). Intensity figures are presented

consistently for the entire reporting period using the same calculation principles.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 76


Energy consumption and mix	2025	2024
Fuel consumption from coal and coal products (MWh)	-	-
Fuel consumption from crude oil and petroleum products (MWh)	8,334	8,760
Fuel consumption from natural gas (MWh)	221	121
Fuel consumption from other fossil sources (MWh)	-	-
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)	1,287	-
Total fossil energy consumption (MWh)	9,842	8,881
Share of fossil sources in total energy consumption (%)	3%	3%
Consumption from nuclear sources (MWh)	77,330	66,586
Share of consumption from nuclear sources in total energy consumption (%)	21%	22%
Fuel consumption for renewable sources (MWh)	275,477	230,288
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)	11	811
The consumption of self-generated non-fuel renewable energy (MWh)	1,058	1,865
Total renewable energy consumption (MWh)	276,546	232,964
Share of renewable sources in total energy consumption (%)	76%	76%
Total energy consumption (MWh)	363,717	308,431


Energy generation	2025	2024
Non-renewable energy generation (MWh)	5,771	6,327
Electricity generation from non-renewable sources (MWh)	-	-
Heat generation from non-renewable sources (MWh)	5,771	6,327
Renewable energy generation (MWh)	277,042	233,291
Electricity generation from renewable sources (MWh)	1,296	2,912
Heat generation from renewable sources (MWh)	275,746	230,379
Share of biofuels in heat generation (%)	98%	97%


Energy intensity per net revenue	2025	2024
Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors (MWh/EUR million)	1,025	1,093


Energy intensity per production volume	2025	2024
Energy intensity per production volume	0.49	0.54

Koskisen’s activities are included in NACE main categories (Rev 1.1) A 020 Forestry,

logging and related service activities, DD 2010 Sawmilling and planing of wood;

impregnation of wood, DD 2021 Manufacture of veneer sheets; manufacture of

plywood, laminboard, particle board, fibre board and other panels and boards and DM

3430 Manufacture of parts and accessories for motor vehicles and their engines, all of

which are included in high climate impact sectors. All of Koskisen’s revenue is derived

from sectors with significant climate impacts. Revenue is reported in the financial

statements, which can be found in the section “Revenue in the comprehensive income

statement of Koskisen’s consolidated financial statements (IFRS) ”


Reconciliation of energy intensity tEUR	2025	2024
Net revenue from activities in high climate impact sectors	354,936	282,262
Revenue in the comprehensive income statement of Koskisen’s consolidated financial statements (IFRS)	354,936	282,262

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 77

Gross Scopes 1, 2, 3 and Total GHG emissions

E1-6

The carbon footprint assessment calculates the potential impact of products on global

warming expressed as carbon dioxide equivalent (CO₂e). The carbon footprint

calculation follows the GHG Protocol. The purpose of the calculation is to determine the

entire Group’s carbon footprint to support communication and reporting to

stakeholders. Stakeholders to whom the carbon footprint is communicated include

customers, employees, financing providers, authorities and forest owners. The

calculation is carried out annually according to the same principles so that it can be

reliably used to monitor the development of the carbon footprint and to determine

targets. The Group’s carbon footprint covers the Group’s operations over one year. In

2025, the business operations of Iisveden Metsä were transferred to Koskisen Oyj

through a business acquisition completed on 1 June 2025, after which the impacts are

also reflected in increased emissions. The carbon footprint is reported in relation to

revenue in EUR million and the volume unit m³, which is the storage unit commonly

used in the Group for all product groups. The calculation includes Scopes 1 and 2 and

Scope 3, as applicable, for all Group activities. The Scope 3 categories excluded from the

calculation are described later in the report. The calculation follows a scientific

approach and uses the most accurate information available. If estimates, averages,

assumptions or other choices are used instead of scientific information, they are

described in connection with the calculation and in the assessment report. The input

data used describes the Group’s operations as accurately as possible.

The emission calculation is mainly based on the organisation’s own consumption and

quantity data (primary data) and commonly used and scientifically justified emission

factors (secondary data). The emission factors used have been selected from reliable

databases, and their sources are described in connection with the calculation.

Previously, the calculation was carried out using the OneClickLCA system, but starting

from the 2025 reporting year the Carbon+Alt+Delete emissions calculation software is

used. The most appropriate emission factor is selected from its databases based on the

information available at the time.

The carbon footprint calculation is not geographically limited, as the majority of

products are exported to different continents and their impacts over the entire life

cycle are taken into account.

The calculation is carried out using the Carbon+Alt+Delete emissions calculation

software. As far as possible, the data collected for other information requirements of the

ESRS standards is utilised in the data collection. All assumptions used in the calculation

are clearly stated. The assumptions and selections related to the calculation details are

described later in the report.

General assumptions as the basis for calculation

Wood raw material is assumed to store biogenic carbon during the service life of

products, meaning that no carbon dioxide emissions occur during product use. In the

end-of-life phase, the products are assumed to be utilised for energy through

incineration, which generates emissions from adhesives and coatings contained in panel

and wood products. Biogenic CO₂ emissions from the combustion of wood material are

not included in the carbon footprint, assuming that the forest is regenerated.

The calculation uses an allocation procedure to avoid double counting between different

product groups. For products moving within the Group, emissions are allocated to the

final product sold to an external customer. This applies, for example, to the use of

sawdust generated in sawn timber production as raw material for chipboard and the use

of logs procured through wood procurement as raw material for sawn timber.

The service life of the main products of the Sawn Timber Industry and Panel Industry is

assumed to be at least ten years in long-lasting wooden structures. During their life

cycle, the products therefore bind biogenic carbon. The carbon handprint resulting

from carbon storage is reported separately and is not combined with the carbon

footprint of the products.

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.

The service life of by-products, wood procurement outputs and thin plywood industry

products is assumed to be less than ten years, and the impact of biogenic carbon

storage is not taken into account for them. By-products are delivered to the pulp and

energy industries, the sawmill industry, the plywood industry, the bedding material

industry and energy production.

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Applications of thin plywood industry products include aircraft components, design

products, interior elements, technical structural panels, musical instrument

components and CNC-machined components.


	Retrospective				Milestones and target years*
	Base year	2025	2024	% 2025/ 2024	2025	2030	(2050)	Annual % target/base year
Scope 1 GHG emissions	2022				N/A	N/A	N/A	N/A
Gross Scope 1 GHG emissions (tCO2eq)	7,576	5,606	6,195	-9.5 %
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (tCO2eq)	N/A	28%	27%
Scope 2 GHG emissions	2022				N/A	N/A	N/A	N/A
Gross location-based Scope 2 GHG emissions (tCO2eq.)	4,674	3,175	4,653	−31.8 %
Gross market-based Scope 2 GHG emissions (tCO2eq)	14,676	1,040	-
Significant Scope 3 GHG emissions	2022				N/A	N/A	N/A	N/A
Total Gross indirect (scope 3) GHG emissions (tCO2eq)	168,560	187,346	160,990	16%
1 Purchased goods and services (tCO2eq)	96,005	101,732	78,961	29%
2 Capital goods (tCO2eq)	9,942	9,085	15,962	−43.1 %
3 Fuel- and energy-related activities (not included in Scope 1 or Scope 2) (tCO2eq)	11,977	3,596	16,569	−78.3 %
4 Upstream transportation and distribution (tCO2eq)	3,586	4,256	3,810	12%
5 Waste generated in operations (tCO2eq)	990	1,355	871	56%
6 Business travelling (tCO2eq)	228	370	180	106%
7 Employee commuting (tCO2eq)	974	1,347	819	65%
		-	-	-%
9 Downstream transportation (tCO2eq)	38,723	49,776	38,165	30%
		-	-	-%
		-	-	-%
12 End-of-life treatment of sold products (tCO2eq)	6,137	15,830	5,653	180%
		-	-	-%
		-	-	-%
		-	-	-%
Total GHG emissions
Total GHG emissions (location-based) (tCO2eq)	180,810	196,127	171,838	14%
Total GHG emissions (market-based) (tCO2eq)	190,813	193,992	167,185	16%

*The current targets have been set for 2027 and have been previously reported under the heading E1-4.

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Scope 1 and 2 CO2 emissions	2025	2024
Gross Scope 1 and 2 GHG emissions (location-based) (tCO2eq)	8,780	10,848
Location-based Scope 1 and 2 CO2 emissions per net revenue	25	38
Gross Scope 1 and 2 GHG emissions (market-based) (tCO2eq)	6,646	6,195
Market-based Scope 1 and 2 CO2 emissions per net revenue	19	22


Biogenic emissions of CO2	2025	2024
Biogenic emissions of CO2 separate from Scope 1 emissions (tCO2eq)	96,510	86,819
Biogenic emissions of CO2 separate from Scope 2 emissions (tCO2eq)	-	-
Biogenic emissions of CO2 separate from Scope 3 emissions (tCO2eq)	506,307	827,419


Share of primary data of Scope 3 GHG emissions	2025	2024
Share of primary data in GHG Scope 3 calculation (tCO2eq)	5,237	88,498
Share of primary data of Scope 3 GHG emissions	3%	55%


GHG intensity per net revenue	2025	2024
Total GHG emissions (location-based) per net revenue (tCO2eq/EUR million)	553	609
Total GHG emissions (market-based) per net revenue (tCO2eq/EUR million)	547	592

The revenue used in the calculation of greenhouse gas intensity corresponds to the

Group’s consolidated revenue, which can be found under Consolidated financial

statements (IFRS), consolidated statement of comprehensive income.

Accounting principles

GHG emissions have been calculated in accordance with the GHG Protocol, covering

Scope 1, Scope 2 and Scope 3 emissions.. The emission calculation system used is

Carbon+Alt+Delete, which utilises emission factors based on several commonly used

and scientifically justified databases. Product-specific environmental product

declarations (EPDs) have been prepared separately using the OneClickLCA system. In

the emissions calculation, in addition to carbon dioxide (CO₂), other relevant

greenhouse gases are also taken into account depending on the emission source, in

accordance with the emission factors applied. Biogenic emissions related to the end-of-

life treatment of sold products are reported separately and include biogenic carbon

dioxide (CO₂). Other potential greenhouse gases are accounted for in accordance with

the emission factors as part of total emissions.

Scope 1 greenhouse gas emissions include all direct emissions from Koskisen Group’s

own factories and sites. The calculation has been carried out using the

Carbon+Alt+Delete emissions calculation software and covers the Group’s operating

countries Finland and Poland. The operations of the Iisvesi sawmill were included in the

calculation as a new entry in 2025. The calculation is based on fuel consumption

volumes derived from purchase invoices, as well as data on own electricity generation

obtained from electricity reports. Emission factors have been selected from the

Carbon+Alt+Delete software so that they best reflect the Group’s operations and

geographical location. During the reporting year, the emission factors previously used

in the calculation were reviewed and updated using more recent data sources, as they

were no longer considered temporally representative. A specific emission factor for bio-

based light fuel oil was not available, and therefore emissions from its combustion were

assumed to correspond to those of biodiesel (HVO).

Scope 2 greenhouse gas emissions cover both of the Group’s operating countries,

Finland and Poland. The operations of the Iisvesi sawmill were included in the

calculation as a new entry in 2025. The calculation is based on electricity consumption

volumes. In Finland, electricity consumption data were collected from the EnerKey

portal, while in Poland the data are based on purchase invoices. The electricity used at

Koskisen’s Finnish sites consists almost entirely of nuclear power verified by Guarantees

of Origin, and less than one per cent of the electricity consumed in Finland is produced

with renewable energy. The electricity consumed in Poland is not renewable, and as

the electricity purchased in Poland does not have Guarantees of Origin, it has been

calculated using the Poland residual mix in the market-based method. In the location-

based method, average emission factors for electricity production in Finland and

Poland have been applied. In the market-based method, nuclear power emission

factors have been used for Finland. During the reporting year, the emission factors

previously used in the calculation were reviewed and updated using more recent data

sources, as they were no longer considered temporally representative.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 80

Scope 3 emissions are reported on the basis of the GHG Protocol, in which they are

divided into 15 categories (C1–C15):

C1 (Purchased goods and services)

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.

The calculation is primarily based on the mass of raw materials and packaging

materials, while emissions related to general business purchases and services have

been calculated based on their economic value. The emission factors previously used in

the calculation were reviewed and updated during the reporting year, as they were no

longer considered temporally representative, and more recent data sources were

applied instead.

Raw material data has been collected with a breakdown into wood, bio-based coatings,

bio-based glues, non-bio-based coatings, oil-based glues, metals and plastics, and

further categorised into virgin and recycled materials. Packaging material data has

been collected with a breakdown into wood, cardboard, plastic and metals, and

similarly categorised into virgin and recycled materials. In cases where emission factors

were not available separately for both virgin and recycled materials, all emissions were

calculated using the emission factor for virgin materials.

The number of Euro pallets has been estimated based on their total mass, assuming a

weight of 25 kg per pallet. Other general business purchases have been categorised

according to the availability of suitable emission factors. If a suitable emission factor

could not be identified for a specific purchase, it was classified under “other business

services” and the corresponding emission factor was applied. Spend-based emission

factors have been adjusted for inflation to reflect 2025 price levels.

C2 (Property, plant and equipment)

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.

Emissions have been calculated based on their economic value, and the same spend-

based emission factor has been applied to all capital goods. The emission factors

previously used in the calculation were reviewed and updated during the reporting

year, as they were no longer considered temporally representative, and more recent

data sources were applied instead. Spend-based emission factors have been adjusted

for inflation to reflect 2025 price levels.

C3 (Fuel and energy-related activities)

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.

Emissions have been calculated based on the electricity and fuel consumption

reported under Scope 1 and Scope 2. Electricity transmission and distribution losses in

Finland are assumed to be 3.7%, based on 2024 data published by Statistics Finland. In

Poland, electricity transmission and distribution losses are assumed to be 7.5%, based

on data published by the Association of Issuing Bodies (AIB).

C4 (Upstream transportation and distribution)

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.

Harvesting and transport of wood raw material are included in Category 1 Goods and

services. The crushing of biofuels in Iisvesi is included in emissions from purchased

services. All fuels used in this category are diesel. The emission factors previously used

in the calculation were reviewed and updated during the reporting year, as they were

no longer considered temporally representative, and more recent data sources were

applied instead.

C5 (Waste generated in operations)

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.

The calculation is based on information regarding the amount of waste generated.

Solid waste data has been collected with a breakdown into non-hazardous waste and

hazardous waste. Non-hazardous waste consists of mixed waste, cardboard, metal,

plastic and other conventional waste, which has been assumed to consist of cables.

Hazardous waste consists of glues and paints, electronic waste and other hazardous

materials.

The solid waste data is further categorised by treatment method into reuse, recycling,

other recovery, incineration, landfill and other final disposal. Due to a lack of more

detailed information, the calculation assumes that waste directed to reuse, other

recovery and other final disposal is incinerated. The emission factors previously used in

the calculation were reviewed and updated during the reporting year, as they were no

longer considered temporally representative, and more recent data sources were

applied instead.

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C6 (Business travel)

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.

Emissions from car travel are calculated based on reported kilometre allowances.

Emissions from flights, train, ship, taxi, bus and subway travel are calculated using

average distances for each travel category. The emission factors previously used in the

calculation were reviewed and updated during the reporting year, as they were no

longer considered temporally representative, and more recent data sources were

applied instead.

C7 (Employee commuting)

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.

Employee commuting includes travel between employees’ homes and workplaces. The

average commuting distance has been estimated based on the municipalities where

employees reside and their average distance from the factory sites. Due to a lack of

detailed statistics on transportation modes, commuting is assumed to take place using

an average passenger car for all employees. The emission factors previously used in the

calculation were reviewed and updated during the reporting year, as they were no

longer considered temporally representative, and more recent data sources were

applied instead.

C9 (Downstream transportation and distribution)

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.

The calculation is based on estimated tonne-kilometres transported by different types

of vehicles. Transport distances are rough estimates based on typical delivery routes to

different countries. The emission factors previously used in the calculation were

reviewed and updated during the reporting year, as they were no longer considered

temporally representative, and more recent data sources were applied instead.

C12 (End-of-life treatment of sold products)

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.

The calculation is based on the mass of sold products. It is assumed that 50% of sold

wood products are sent for incineration, 26% for recycling and 24% to landfill. The

emission factors previously used in the calculation were reviewed and updated during

the reporting year, as they were no longer considered temporally representative, and

more recent data sources were applied instead.

Biogenic emissions were calculated based on the following assumptions: the dry

matter content of wood is 80%, the carbon content in the dry matter is 50%, and the

conversion factor from carbon to carbon dioxide is 44/12 = 3.667 (ratio of molar masses).

The calculation was performed manually, as suitable emission factors were not

available in the Ecoinvent datasets used. Biogenic emissions are associated only with

the combustion process.

Koskisen has concluded an entirely nuclear power-based electricity contract with

Vattenfall to cover all operations in Finland.

The table below broken down by Scope 3 categories shows which categories have been

included in the calculation of greenhouse gas emissions and which have been

excluded as irrelevant for the Group’s operations. The impacts of categories 8, 10, 11, 13,

14 are minor and not included in the emission figures.


Upstream Scope 3 emissions
Category 1: Purchased goods and services	included
Category 2: Capital goods	included
Category 3: Fuel- and energy-related activities	included
Category 4: Upstream transportation and distribution	included
Category 5: Waste generated in operations	included
Category 6: Business travelling	included
Category 7: Employee commuting	included
Category 8: Upstream leased assets	N/A
Other	N/A

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Downstream Scope 3 emissions
Category 9: Downstream transportation and distribution	included
Category 10: Processing of sold products	N/A
Category 11: Use of sold products	N/A
Category 12: End-of-life treatment of sold products	included
Category 13: Downstream leased assets	N/A
Category 14: Franchises	N/A
Category 15: Investments	N/A
Other	N/A

GHG removals and GHG mitigation projects financed through

carbon credits

E1-7

Greenhouse gas removals include the sequestration of biogenic carbon in Koskisen’s

wood products. The method of calculating carbon sequestration is based on product-

specific EPD calculations verified by an external party, and calculation pursuant to the

GHG Protocol, which Koskisen has commissioned from an external service provider and

is described in section E1-6 Gross and Total Scope 1, Scope 2 and Scope 3 GHG emissions.

Koskisen manufactures long-lasting wood products that bind biogenic carbon for

decades. When growing, wood naturally absorbs carbon dioxide from the atmosphere,

which is retained in the wood until the wood product is ultimately disposed of by

incineration or composting. Koskisen sells its products to the construction industry,

among others, where wood products generally last for decades. There are no policies

for managing the risk of non-permanence.

The amount of carbon dioxide stored in wood products is calculated by multiplying the

sales volumes by negative biogenic carbon dioxide emissions according to the

environmental product declarations (EPDs). The calculation takes into account

products for which an environmental product declaration exists and which can be

assumed to have a life cycle of more than 10 years.


GHG capture	2025	2024
Carbon dioxide stored in long-lived products (tCO2eq)	358,588	272,376

Internal carbon pricing

E1-8

Koskisen has not implemented an internal carbon pricing system.

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ESRS E4 Biodiversity and ecosystems

Material impacts, risks and opportunities and their

interaction with strategy and business model

ESRS 2 / SBM 3

Koskisen’s material impacts, risks, and opportunities related to biodiversity and

ecosystems are located in the forest management part of the value chain. The location

includes Koskisen’s wood procurement area and the sites which the company owns or

has felling rights to. In factory operations regulated by local environmental legislation,

the sites are not associated with material impacts, risks or opportunities related to

sustainability.

The forestry operations related to Koskisen’s value chain in the aforementioned

locations may have a negative impact on biodiversity-sensitive areas. Koskisen mainly

procures wood from Central, Eastern, and Southern Finland, primarily from private

landowners and to a small extent from the company’s own forest properties. Koskisen

has harvesting rights on the properties of private landowners, which means that

Koskisen is responsible for operations on behalf of the landowner.

The ecological state of the forest ecosystems at the locations corresponds to the basic

level of Finnish forest nature. There may be biodiversity-sensitive areas at individual

sites or near them. The location and other relevant information of biodiversity-sensitive

areas to be considered in forestry operations are based on official data and are

managed in the forest information system, where there is information about individual

sites. This information can also be obtained through official notifications based on the

statutory forest use declaration. Some sites may also be encountered in the field, as not

all sites have preexisting information available. Sensitive areas identified in Koskisen’s

wood procurement are presented in the table below.

Sites located in biodiversity sensitive areas


	2025	2024
Sites near protected areas (pcs)	304	200
Sites near protected areas (ha)	1,126	705

Koskisen has operated in the vicinity of these areas in accordance with laws and

requirements, and no mitigation actions have been necessary during 2025.

The company has identified that its upstream activities may cause material negative

impacts related to land degradation. No negative effects have been found on soil

sealing or desertification.

Forestry operations may affect threatened species in the forest environment.

Description of processes to identify and assess material

biodiversity and ecosystem-related impacts, risks and

opportunities

E4-1

The resilience of Koskisen’s business model and strategy in relation to biodiversity and

ecosystems has been assessed in terms of physical, transition and systemic risks.

Although the business model and strategy show resilience, the assessment involves

significant risks. The key risks are related to the availability of raw materials, the effects

of climate change and other value chain impacts. The analysis covers the upstream

value chain, especially from the perspective of raw material procurement. Downstream

value chain has not been examined at the moment. The review focused on physical and

transition risks.

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. Droughts and

extreme weather events are becoming more common. This is expected to weaken

the availability of raw materials and increase price volatility. The resource capacity of

forests is weakening.

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• Koskisen's operations have most impact in areas that are most biodiversity-sensitive.

The estimate is based on a review of critical production areas. No significant impact

assessment has been carried out for the global value chain.

• Various measures to support biodiversity help mitigate risks, but their scalability is

slow and therefore the effects will be visible in the medium to long term.

• Negative climate and biodiversity impacts will occur moderately, increasing over the

next 10–20 years.

• The analysis of Koskisen’s operational impacts focuses on the wood procurement

area located in Finland.

The analysis covered a short-, medium- and long-term review.

Results of the analysis

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. 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. Drought and moisture

conditions affect forest areas, which increases the risk level in all operating areas.

• Impact on the value chain: The risk assessment includes consideration of long-term

issues, such as supply chain disruptions caused by biodiversity loss, which can

increase costs and complicate operational planning.

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.

In the medium term (5–10 years), the impacts of implementing biodiversity strategies

are highlighted, including stricter regulation and the related increases in operating

costs. The effects of climate change on ecosystems, such as an increase in droughts,

may become evident during this period.

In the long term (>10 years), systemic risks are emphasised. These include, for example,

a more permanent deterioration in the state of forests and more serious disruptions to

ecosystem services, which may threaten the availability of raw materials and the

continuity of operations. Long-term scenarios require a new balance with biodiversity

targets and the introduction of new solutions. However, the impacts of long-term

systemic risks have not been modelled, even though the possible permanent

deterioration of forests and ecosystems has been highlighted.

Resilience against transition risks is implemented through upstream management of

the value chain. The company’s strategy supports, for example, the objectives of the UN

Convention on Biological Diversity and the EU Biodiversity Strategy through

certification-required, biodiversity-supporting actions, but the adequacy of the

measures does not fully meet the sustainability target levels. Increasing resilience

against physical risks is still in its early stages, particularly when considering the long-

term impacts of climate change on ecosystems. With regard to systemic risks, the

analysis only covers the upstream value chain.

Koskisen does not operate in areas inhabited by indigenous peoples. Other stakeholder

engagement takes place mainly within the framework of Koskisen’s normal

stakeholder interaction, which is described in section SBM-2 Interests and views of

stakeholders.

Policies related to biodiversity and ecosystems

E4-2

Principles related to biodiversity and ecosystems consist of the company’s operational

policy, environmental principles, wood procurement principles and the company’s

Code of Conduct. These policies and principles indirectly address how the company

contributes to the direct drivers of biodiversity loss, including climate change, land-use

change, changes in freshwater and marine use, direct exploitation, invasive alien

species and pollution, as well as impacts on species status, ecosystem extent and

condition, ecosystem services and dependencies on them. This is achieved through a

commitment to compliance with legislation, the application of certification systems

ensuring the origin of wood and compliance with environmental permits, covering

both factory operations and the procurement of wood raw material.

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The company’s policies and principles respond to identified impacts related to

biodiversity loss particularly through forest management practices, certification,

traceability of the origin of wood raw material and cooperation with partners. These

operating models form an operational framework in which biodiversity considerations

are integrated into daily operations both in the company’s own activities and across the

value chain. They provide a systematic basis for identifying and managing impacts and

for promoting operating practices addressing the drivers of biodiversity loss at the

upstream stages of the value chain.

Biodiversity loss is mitigated, among other measures, by identifying and preserving

valuable habitats, implementing water protection practices and incorporating

biodiversity-enhancing structural features in connection with forestry operations.

Compliance with certification schemes provides external guidance, monitoring and

verification that support the practical implementation and continuous improvement of

these principles. The origin management system complies with the current EUTR,

EUDR, PEFC ST2002:2020 and FSC requirements so that all wood material used and

sold is, at a minimum, included within the scope of the control system. Forest owners

are offered the opportunity to commit to PEFC certification in connection with wood

sales.

Koskisen’s business operations are highly dependent on the availability of wood raw

material. Increasingly stringent biodiversity-related regulation at EU or national level

may therefore restrict harvesting volumes, the use of forests or impose additional

requirements on the origin of wood. The company’s principles mitigate transition risks

by anticipating regulatory developments and ensuring that the procurement chain

complies with defined environmental requirements. Through these measures, Koskisen

aims to safeguard the availability of wood, reduce disruptions to cash flows and asset

values resulting from regulation and maintain the confidence of financing providers

and investors.

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. 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.

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. Koskisen’s principles support biodiversity and

forest regeneration, which strengthens the long-term productivity of forests and

reduces physical risks. Maintaining forest health is therefore not only an environmental

responsibility but also a key factor related to business continuity and the predictability

of cash flows.

In its Environmental Principles, Koskisen is committed to continuously reducing the

environmental impacts caused by its operations, its entire value chain and the full life

cycle of its products on soil, waters, climate and ecosystems by developing products

and production processes that take these principles into account throughout the value

chain and product life cycle.

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. In addition, Koskisen is committed to the industry

association’s forest environment programme and monitors the effectiveness of its

actions using defined metrics.

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.

Harvesting operations utilise a forest information system and digital maps enabling the

traceability of the wood supply chain from the stump to the factory. A separate

declaration has been issued on the origin of the wood and the implementation of wood

procurement.

The operational policy and environmental principles apply to all of Koskisen’s

operations without exception. The policies and principles have been approved by the

Board of Directors. The executives of the Group and the business units, who are

members of the company’s Executive Board, are responsible for implementing the

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 86

policy and reporting on operations to the Board of Directors. Stakeholder perspectives

were taken into account in their preparation as part of the double materiality analysis.

The Environmental Principles are available to stakeholders on the company’s website.

These policies cover the material physical and transition risks and impacts related to

biodiversity and ecosystems to the extent that they can be influenced through

Koskisen’s own operations.

To complement the operational policy, more detailed principles have been defined for

wood procurement. Their aim is to reduce and prevent impacts on biodiversity and

ecosystems in the procurement of raw materials.

In addition to legal requirements, Koskisen’s wood procurement principles are based

on the Forest Management Recommendations generally recognised in the forest

sector and the requirements set by the PEFC or FSC chain of custody systems. The

Forest Management Recommendations are based on research data and expertise

gained from practical experience and are continuously updated. The requirements set

by PEFC and FSC forest certification support biodiversity in the management and use

of commercial forests, and the requirements of the schemes are updated regularly.

Koskisen is also committed to the Finnish Sawmills Association’s forest environment

programme, which supports forest professionals and landowners in understanding

measures that take biodiversity into account. Defined metrics are used to monitor the

success of the measures implemented by contractors.

The principles are also followed by partners carrying out operations for Koskisen,

ensuring consistent practices. Koskisen’s operational policy, environmental principles

and wood procurement principles include principles that promote the protection of

biodiversity and ecosystems and are applied comprehensively in forest areas owned by

Koskisen and in areas where it holds harvesting rights. The policies and principles

ensure the traceability of wood raw material — whose procurement at the upstream

stages of the value chain has real impacts on biodiversity and ecosystems — in

accordance with the chain-of-custody requirements of PEFC and FSC certifications

throughout the value chain. Koskisen’s operations do not include practices or

operational principles related to agriculture or marine environments, and the policies

do not directly address the social consequences of biodiversity or ecosystem impacts.

The Code of Conduct for addressing deforestation forms part of Koskisen’s operational

policy.

Actions and resources related to biodiversity and ecosystems

E4-3

Koskisen’s wood procurement is a continuous process, which means the continuous

management of sustainability impacts related to biodiversity and ecosystems by

implementing the policies and principles described above. In addition, continuous

monitoring and training are of great importance, and will be further developed as part

of the annual planning of operations. The aim is to enhance the competence and

knowledge of personnel and forest owners in order to strengthen biodiversity actions

and their effectiveness. Continuous and comprehensive monitoring that covers all

actions provides information on the success and effectiveness of the actions. The

certification percentage of raw material procured from the forest was increased, and it

is continuously monitored in operations.

Key actions to achieve the targets of the Sustainability Programme in 2025 were as

follows:

The implementation of Koskisen’s forestry measures and biodiversity-related criteria

was carried out through comprehensive in-person training for both wood procurement

personnel and contractors in four training sessions held across Koskisen’s procurement

area. The training covered biodiversity in forest nature and its safeguarding in forest use

to provide broader context for the criteria. The training sessions were organised in

cooperation with the University of Eastern Finland.

To support the implementation, a team-based training model has been developed and

piloted, and its implementation has begun to expand to other regions. The objective is

to establish continuous field training in small regional teams focusing on current topics.

Through these trainings, the aim is to increase awareness and competence particularly

in the implementation of challenging sites so that impacts on nature can be minimised

where possible and biodiversity at the sites can be supported and promoted.

Training on small waters organised for personnel focused on the identification of small

water habitats and their consideration in forestry operations. The objective of the

training was to strengthen competence related to the requirements of legislation and

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 87

forest certification, harmonise approaches to nature management and improve the

quality of nature management related to small waters. During the field training,

participants examined different types of small water sites and reviewed practical

operating practices that support the preservation and improvement of the condition of

small waters within forestry activities.

As a new practice, the review of special sites was introduced as part of regular team

meetings. The objective is to share experiences and perspectives on different types of

special sites and how they should be considered in operations based on practical

experience.

In 2025, Koskisen participates in the project “Practical Lessons for Machine

Operators” (KOPPI), which aims to develop practical tools and guidelines for machine

operators to improve water protection and the management of environmental

impacts. The project is led by the Baltic Sea Action Group (BSAG).

Monitoring of forestry operations and the development of monitoring practices

continued. Monitoring enables the assessment of the quality of operations and

provides information on the level of biodiversity-related measures. Monitoring consists

of inspections carried out by persons independent of the operations as well as site-

specific reporting carried out by the operators performing the work. During 2025, the

development of the self-monitoring tool and the collection of self-monitoring data

continued, but coverage has not yet reached the target level and the new self-

monitoring tool has not yet been fully implemented.

Following the business acquisition, the harmonisation of wood procurement practices

of Iisveden Metsä with Koskisen’s operating model was initiated immediately after the

transaction entered into force and is ongoing. The actions described also apply to

operations in the Iisvesi area.

No significant financial resources have been allocated to these actions. The key

measures are part of Koskisen’s daily operations and no separate CapEx or OpEx has

been allocated to them beyond the existing resources. Other financial resources related

to forest management services in accordance with the EU Taxonomy are described in

the EU Taxonomy reporting section, but they are not linked to the actions described

above.

The actions and the continuous process of Koskisen’s wood procurement do not

include ecological compensation measures. The actions have not specifically

incorporated the traditional ecological knowledge of local indigenous communities or

other specific solutions.

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Targets related to biodiversity and ecosystems

E4-4


Targets	KPI target 2027	Base year 2022	2025	2024	Aspects related to the targets
Availability of high-quality, certified Finnish wood	Share of certified round wood 88%	81.0%	91.5%	86.6%	Ensuring measures that promote biodiversity
Increasing expertise	100% of own wood procurement personnel have received training on biodiversity	-%	97.0%	100.0%	Ensuring measures that promote biodiversity
Increasing expertise	100% of contractors have received biodiversity training	-%	88.0%	85.0%	Ensuring measures that promote biodiversity
Timber sourcing in accordance with the forest environment programme	Monitoring in accordance with the forest environment programme	-%	63.5%	-%	Ensuring measures that promote biodiversity

Ecological thresholds have not been specifically considered in the target setting.

However, Koskisen takes into account the achievement of the following/general, non-

community-specific ecological thresholds in its operations, as described above.

Koskisen's wood procurement unit has the responsibility to ensure the compliance

with these thresholds in all actions carried out by Koskisen.

The targets will contribute to actions that align with the policy, i.e. the development of

structural features of forestry in line with the Kunming-Montreal Global Biodiversity

Framework, the relevant aspects of the EU Biodiversity Strategy for 2030 and other

national policies related to biodiversity and ecosystems. However, based on scientific

evidence, the measures are not sufficient to ensure the achievement of these

objectives at the national level. In wood procurement, Koskisen defines actions in

interaction with forest owners. The decision on actions exceeding the minimum level of

operations, which consists of the requirements of PEFC forest certification, is ultimately

made by the owners of the sites. In order to achieve the national target levels, a wide

range of measures are needed, not all of which are directly possible for forest industry

companies to contribute to in their own operations.

The targets are related to the impacts, dependencies and risks on biodiversity and

ecosystems, both in the company’s own operations and in the upstream value chain.

The objectives aim to enhance biodiversity actions implemented in connection with

forestry operations and their monitoring.

The targets are geographically focused on all of Koskisen’s forestry operations.

Ecological compensations have not been utilised and stakeholders have not been

involved in setting targets.

In line with the mitigation hierarchy, the targets aim to equally avoid and minimise

impacts on biodiversity and ecosystems. The targets do not include those related to

rehabilitation nor compensation or offsets. The planned actions are monitored at the

sites with metrics that provide information on the development of structural features in

forestry operations in accordance with the Forest Environment Programme for the

Sawmill Industry.

The target level for certified raw material set for 2027 was achieved during the

reporting period as a result of planned and systematic development work.

A biodiversity training programme covering all personnel and contractors was defined

for 2026. The trainings were conducted as in-person sessions, and no alternative

arrangements were organised for those unable to attend. As a result, the training

coverage during the reporting year remained slightly below the set targets.

Site-specific monitoring in accordance with the forest environment programme, for

which no data was available for 2024, was initiated. However, due to the incomplete

development of the system, the monitoring did not yet cover all sites. The development

of the system and the expansion of its implementation will continue in 2026.

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Data related to the operations integrated from Iisveden Metsä are included in the

figures starting from June.

The biodiversity training and monitoring implemented during the reporting period

have not yet had a significant impact on biodiversity indicators, as the monitored sites

were mainly selected from sites completed before the training sessions were

conducted.

Impact metrics related to biodiversity and ecosystems

change

E4-5

Forestry practices that take forest nature into account consist of considering valuable

habitats, favouring mixed forests over single-species forests, maintaining retention

trees and making high stumps, protective thickets, saving dead wood and low-yielding

areas. The implementation of these is monitored in operations through sampling-

based audits. The extent of operations near protected areas is documented in relation

to biodiversity-sensitive areas. These areas are excluded from operations, or operations

are carried out in accordance with the restrictions defined by the authorities.

Regarding impacts on biodiversity and ecosystems, the preservation of biodiversity-

supporting structural features is measured, but these metrics do not directly measure

the state of nature. The set of metrics is based on monitoring activities in the forest

environment in accordance with Koskisen’s objectives. The metrics have been defined

to align with the goals of the Finnish Sawmills Association’s forest environment

programme, and they also measure the implementation of PEFC forest certification

requirements in wood procurement activities.

The development of competence through biodiversity training is also reported as part

of the biodiversity metrics. Targets for these have been set in Koskisen’s Sustainability

Programme, and the training included in the metrics is defined annually for different

target groups. Further information on the training is presented in section E4-3. The

monitored actions have shown positive biodiversity development, although they do not

directly correspond to the achievement of ecological sustainability thresholds as such.

The audits included in the metrics are carried out on sites where wood procurement

activities have been implemented. They are based on sampling and cover all types of

activities and areas where Koskisen operates. The sample includes worksites where

operations were carried out between 1 August 2024 and 1 May 2025. At least 25% of the

audits are based on random sampling. Monitoring is carried out when the ground is

unfrozen, and the sites to be inspected are selected from operations carried out during

the year. The audits are conducted in the field and the monitoring is repeated annually.

Self-monitoring audits are also carried out at the sites to support the reportable

metrics, and the information obtained from them complements the information

gathered in the audits. The uncertainties of site-specific audits are related to the

subjective assessment of the auditors, as not all factors related to the metrics—such as

the diameter of retention trees or the amount of dead wood—are measured separately

in all respects. In addition, the number of retention thickets may depend on the

characteristics of the site; in some cases they may not exist at all, or they may have

been left as a larger continuous entity, in which case the number does not necessarily

indicate the success of the measure.

Forest owners who enter into a timber sales agreement with Koskisen commit to

Koskisen’s forest environment programme with regard to that timber transaction.

Timber sales agreements may be long-term. This reporting includes only those timber

sales agreements concluded during 2025 whose start date falls within the reporting

year. The reporting covers standing timber sales agreements only and does not include

delivery sales.

The share of certified roundwood is a calculated and precise metric, the

implementation of which is continuously monitored.

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Biodiversity metric	2025	2024
Biodiversity credits (EUR)	-	-
Sites close to protected areas (pcs)	304.0	200.0
Sites close to protected areas (ha)	1,126.1	704.5
Share of stands where thickets have been left in accordance with the instructions (%)	98%	50%
Number of thickets left (pcs/ha)	1.3	1.7
Share of deciduous species in sold seedlings (%)	34%	33%
Number of aspen trees (diameter > 40 cm) retained after forest management activities (pcs/ha)	0.6	0.2
Share of stands where high stumps have been left in accordance with the guidelines (%)	48%	43%
Number of high stumps made (pcs/ha)	3.2	1.8
Share of stands where live retention trees have been left in accordance with the guidelines (%)	77%	81%
Number of retention trees left (pcs/ha)	14.0	11.0
Number of dead wood left (pcs/ha)	3.8	3.9
Share of forest personnel who have participated in training related to the consideration of forest biodiversity (%)	97%	85%
Share of contractors who have participated in training related to the consideration of forest biodiversity (%)	88%	85%
Forest owners who have participated in the forest environment programme (%)	97%	-%
Amount of certified roundwood (%)	91.5%	86.6%

Individual sites in Koskisen’s wood procurement areas, or in their vicinity, may have

biodiversity-sensitive areas. Forestry operations can potentially have a significant

impact on biodiversity.

Koskisen’s considers its entire wood procurement area as having the potential for

biodiversity-sensitive areas either within or nearby.

Koskisen has stated that its operations do not promote land use change. Koskisen’s

wood procurement takes into account the biodiversity and vitality of forest ecosystems

and also supports forest regeneration.

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ESRS E5 Resource use and circular economy

Description of the processes to identify and assess material

resource use and circular economy-related impacts, risks

and opportunities

IRO-1

Koskisen has identified and assessed resources and its operations to identify actual and

potential impacts, risks and opportunities in its own operations and upstream and

downstream value chain. The methods, assumptions and tools used for identification

and assessment are described in section ESRS 2 IRO-1 of the Sustainability Statement.

Even though the identification and assessment process was mainly carried out at a

general level, the assessment of own operations focused on sawn timber, plywood and

chipboard activities, related customers in business relationships and, geographically,

Koskisen’s production plant in the municipality of Kärkölä and nearby areas. The

connections of different levels of resource dependencies, such as the availability of

wood raw material and skilled labour, to potential risks were also identified. Various

circular economy issues, especially related to the use of recycled materials, were

emphasised in the stakeholder consultation process in the views of

chipboard customers.

Policies related to resource use and circular economy

E5-1

In its environmental principles, Koskisen is committed to continuously reducing the

impact caused by its operations, entire value chain and the entire life cycle of its

products on the soil, waters, climate and ecosystems by developing products and

production processes that take these principles into account throughout the value

chain and product life cycle.

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. 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. The operations follow the waste hierarchy principle.

Thanks to its integrated operating model, Koskisen taps synergies between its various

activities, industrial flows and the recyclability of products. In accordance with its

environmental principles, Koskisen uses the renewable wood raw material it procures

down to the last particle of sawdust, which indirectly reduces the use of primary

resources and increases the use of secondary resources, such as sawdust, in new

products. No direct goal has been set to move away from using wood as a primary

resource.

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.

The operational policy and Environmental Principles have been approved by the

company’s Board of Directors. The executives of the Group and the business units, who

are members of the company’s Executive Board, are responsible for implementing

these policies and reporting on operations to the Board of Directors. Stakeholder

perspectives were taken into account in the preparation of the policies as part of the

double materiality analysis. The operational policy and Environmental Principles are

available to stakeholders on the company’s website, Policies and principles – Koskisen.

The wood procurement principles have been approved by the wood procurement

management team. The management team includes the head of the unit, who is

responsible for implementing the business unit’s perspectives and reporting on

operations to the Board of Directors. Stakeholders were not consulted separately in the

preparation of the wood procurement principles. The principles are available to

stakeholders on the company’s website, Wood procurement principles – Koskisen.

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Actions and resources related to resource use

and circular economy

E5-2

Koskisen’s actions are targeted at its own operations in the value chain. Resource

efficiency is improved in production processes. The key actions and their

implementation schedule are described in the table below.

In the Panel Industry segment’s plywood production in Järvelä, a comprehensive

investment programme is underway and will continue until the end of 2027. The aim is

to improve the productivity, quality and yield of plywood production. During 2025,

several investments were completed, including a sheeting line that reduces waste by

enabling more precise optimisation of raw material use in internal operations, the

renewal of the film applicator on the coating line, an automatic filling line and the

modernisation of the stacking device of the drying line. All of these measures aim to

improve the efficiency of raw material use by reducing waste.

At the Järvelä sawmill, a new log sorting system has been introduced, enabling more

precise sorting into different diameter classes and the addition of new classes in line with

increased capacity. The sawing technology of the new sawmill introduced in 2024 allows

the use of a wider range of log diameter classes, enabling more accurate utilisation of

wood raw material. The utilisation rate has been further improved through advanced log

optimisation. Each log can be optimised according to predefined sawing parameters,

which has improved the yield in converting wood raw material into main products.

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. New products aim to

utilise raw materials as efficiently as possible and extend the life cycle of wood,

particularly through the use of side streams and recycled materials. During 2025, two

new circular economy products were introduced, representing a step towards

Koskisen’s objective of increasing the degree of processing and making more extensive

use of side streams from its own production.

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. The solution enables the utilisation of recycled wood at an

industrial scale.

A briquette plant has been built in connection with the Järvelä sawmill, where planer

shavings generated as a by-product of sawn timber processing are compressed into

briquettes used as biofuel. The plant has a production capacity of 7,500–10,000 tonnes

per year, and the objective is to process all planer shavings generated at the sawmill

into briquettes. Compressing planer shavings significantly reduces transport costs and

related emissions, as briquettes can be transported in volumes several times greater

than unprocessed shavings.

Further resource efficiency measures will be implemented as part of the Panel Industry

investment programme and are expected to be completed by 2027.

The resources required to implement the actions are determined on an action-by-action

basis either as capital expenditure or operating expenditure. The resources allocated to

the actions are included in the Group’s financial reporting as investments and

operational expenses according to the nature of the activities. Financial information is

presented in the EU Taxonomy Report, which describes the taxonomy-eligible and

taxonomy-aligned capital and operating expenditure related to sustainability actions.

The taxonomy report serves as a link between the actions described in the sustainability

statement and the corresponding financial indicators (CapEx and OpEx). Capital

expenditure presented in the Taxonomy reporting and allocated to the actions covers

the key projects that meet the Taxonomy-alignment criteria. These include the

briquetting plant, the transition to LED lighting and the district heating pipeline along

Mäntsäläntie. For these projects, the CapEx amounts presented in the Taxonomy

disclosures are consistent with the allocated expenditure presented in the table in the

sustainability statement. Not all actions presented in the table are included in the

Taxonomy reporting, as they are not within the scope of the EU Taxonomy.

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Key actions	Implementation schedule	Capital expenditure EUR thousand	Operating expenditure EUR thousand
Järvelä plywood production – sheeting line	Implemented in the reporting year 2025	576	N/A 2025
Järvelä plywood production – renewal of the film applicator on the coating line	Implemented in the reporting year 2025	N/A 2025	N/A 2025
Järvelä plywood production – automatic filling line	Implemented in the reporting year 2025	2,497	N/A 2025
Järvelä plywood production – modernisation of the drying line stacking device	Implemented in the reporting year 2025	N/A 2025	N/A 2025
Järvelä sawmill – log sorting system	Implemented in the reporting year 2025	1,164	N/A 2025
Järvelä sawmill – continuation of sawing technology optimisation	Implemented in the reporting year 2025	N/A 2025	N/A 2025
Panel industry – recycled material pilot in cooperation with Kesko Oyj	Implemented in the reporting year 2025	N/A 2025	N/A 2025
Järvelä sawmill – briquette plant	Implemented in the reporting year 2025	1,183	N/A 2025

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Targets related to resource use and circular economy

E5-3


Targets	KPI target 2027	2022	2025	2024	Aspects related to targets	Waste hierarchy layer
Efficient and optimised use of wood raw material	Wood raw material efficiency for long-lasting wood products 60%	55%	48%	50%	Reducing resource inflows; Minimisation of primary raw material	1. Prevention
Increasing the use of recycled material in chipboard production	Share of recycled material in chipboard raw material 5%	-%	0.24%	-%	Reducing resource inflows and waste; Increasing the use of recycled materials	2. Recycling
Innovating new circular solutions	Increase in product development resources (EUR) +10%	0,3 milj. e	0,1 milj. e	0,3 milj. e	Reducing resource inflows and waste; Increasing circular product design	2. Recycling

All targets are related to reducing resource inflows, in addition to which increasing the

use of recycled material and innovating new circular economy solutions will reduce

resource outflows in the form of waste. The targets are not related to waste

management. No specific methods or significant assumptions have been used in

defining the targets, and they are not related to national, EU or international policy

objectives. The setting of targets takes into account the legislative changes to the

circular economy and the use of primary resources.

The aim is to increase circular product design by increasing product development

resources by 10% by 2027 from the 2022 level. 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. By utilising side streams and recycled

materials in the panel industry, the aim is to slow the depletion of primary resources

and natural resources.

Koskisen’s woodwise operating model, which aims for the highest possible and

optimised use of raw materials, naturally minimises the use of primary raw materials

per the produced volume of long-life wood products, such as chipboard. However, since

a significant part of production uses side streams already generated in Koskisen’s

production as secondary raw materials, the change in the efficiency of operations will

not directly affect the need for primary raw materials to a corresponding extent.

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. Parts that cannot be used for sawn timber and wood-based

products, such as bark, are used as bioenergy. The products manufactured by Koskisen

can be reused after their primary use, either through recycling or as bioenergy. In the

end, almost all of Koskisen’s wood products and plywood can be composted after

chipping. The product documentation contains information on the recommended

methods of further use or disposal of each wood product.

The targets are set by Koskisen itself and are not related to mandatory statutory

requirements. Stakeholders have not been engaged in defining the targets.

The acquisition of the Iisveden Metsä business affects the utilisation rate of wood raw

material used in long-lasting products, as unlike the Järvelä operations, the side

fractions from sawing are not directed to long-lasting products but to energy

production or sales. In addition, regarding recycled material in chipboard, the pilot trial

has demonstrated that industrial-scale production is feasible, and implementation will

continue during 2026.

The targets have not been reassessed, as they extend until 2027.

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Resource inflows

E5-4

Koskisen’s most important resource inflows are wood, the main raw material used in

manufacturing, and other raw materials and packaging materials. In addition, water,

machinery and supplies are consumed as commodities in production. In sawn timber

products, wood is the only raw material, with the exception of painted wood products.

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. Plastic, cardboard

and foil packaging as well as base pallets are used as packaging materials.

The purchase quantities of wood are known by volume unit (m³) and are converted into

tonnes for reporting purposes using average conversion factors based on the

characteristics of the wood raw material. The conversion factors are based on average

density values (kg/m³) defined for different wood raw material fractions, which are used

to convert volume units into mass. Density values may vary, for example, depending on

moisture content and particle size. The quantities of other raw materials and packaging

materials are obtained either from the company’s own purchasing systems or from

supplier surveys, which are compared with the quantities recorded in the company’s

purchasing system. Otherwise, the data does not include significant assumptions and is

based on measured or system-based input data.

Koskisen uses side streams from its own operations in its products. Chipboard is

produced from sawdust and other side fractions, such as bark, are used as fuel for

heating own production plants. In 2025, the use of own side streams in products

totalled 64,920 tonnes.

To avoid double calculation, resource inflows are taken into account when the resource

flows into Koskisen’s operations for the first time. In the case of further processing, the

material flow is not calculated a second time.


Total resource inflows (t)	2025	2024
Raw materials, wood (t)	854,726	715,943
Raw materials, wood-based coatings (t)	968	1,165
Raw materials, wood-based adhesives (t)	826	791
Packaging materials, wood (t)	1,264	1,645
Packaging materials, paper fibres (t)	646	705
Volume of biological material (t)	858,430	720,249
Proportion of biological materials (%)	98%	98%
Raw materials, other coatings (t)	1,883	1,640
Raw materials, oil-based adhesives (t)	12,774	12,160
Raw materials, metals (t)	99	90
Raw materials, plastics (t)	344	216
Packaging materials, plastics (t)	360	127
Packaging materials, metals (t)	4	6
Volume of non-biological materials (t)	15,465	14,239
Total material inflows (t)	873,895	734,487
Use of own side streams in products (t)	64,920	60,029
Volume of recycled materials (t)	65,421	60,942
Proportion of recycled materials (%)	7%	8%


Wood material flows	2025	2024
Wood procurement (m³)	1,956,596	1,588,166
Use of wood at plants (m³)	1,234,306	906,584
Use of own side streams in products (m³)	158,964	150,072
Efficiency of wood use in long-life products %	48%	50%

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Resource outflows

E5-5

Koskisen’s main products are sawn timber and processed products as well as

chipboard and plywood. The products are made from renewable natural material that

can be reused, recycled or recovered as energy at the end of its life. The products

manufactured by Koskisen are mainly high-strength and long-life products. The

products are used in construction, packaging and furniture industries. 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.

Koskisen’s main products are basic materials for industry and construction, which do

not differ from other similar wood-based products in terms of durability or reparability.

Wood products are technically fully recyclable, disregarding whether the end-use site is

prepared to implement recycling.

The company defines and classifies its panel and plywood products as aligned with

circular economy principles by utilising standardised technical tests, design

specifications and material-specific properties. These are primarily based on direct

measurements supplemented by calculated estimates. The criteria used in the

assessment cover product durability, service life, reusability, repairability, recyclability

and the optimisation of material circulation. The mechanical properties, moisture

resistance and use classes of the products are determined through laboratory tests and

quality control in accordance with European EN standards, which serve as the basis for

assessing service life and structural durability.

Reusability and repairability are assessed based on the structural integrity, uniform

quality and standardised structures of the products, which enable dismantling,

reinstallation and continued use in the original or alternative applications. Assessments

related to recyclability and material circulation are based on the use of wood-based

renewable raw materials, certified wood procurement and production processes that

efficiently utilise side streams and enable material recovery, energy recovery or

biological circulation at the end of the product life cycle.

Some of the information, particularly estimates related to the end-of-life phase of

products and practical recycling solutions, is based on expert assessments and

generally accepted industry practices. A key assumption is that products are used in

accordance with their defined operating conditions and instructions, and that end-of-

life treatment is carried out in accordance with applicable legislation and local waste

management practices.


Total products sold (t)	2025	2024
Products (t)	690,418	560,754
Proportion of recyclable products (%)	100%	100%
Proportion of recyclable packaging (%)	100%	100%

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Total amount of waste (t)	2025	2024
Amount of ordinary waste to prepare for reuse (t)	40	38
Amount of ordinary waste to be recycled (t)	456	503
Amount of ordinary waste for other recovery (t)	198	157
Amount of ordinary waste for other than disposal (t)	693	698
Amount of ordinary waste for incineration (t)	280	277
Amount of ordinary waste to landfill (t)	65	59
Amount of ordinary waste for other disposal (t)	180	-
Amount of ordinary waste for disposal (t)	525	336
Amount of hazardous waste for preparation for reuse (t)	5	19
Amount of hazardous waste for recycling (t)	-	-
Amount of hazardous waste for other recovery (t)	-	-
Amount of hazardous waste for other than disposal (t)	5	19
Amount of hazardous waste for incineration (t)	213	184
Amount of hazardous waste to landfill (t)	-	-
Amount of hazardous waste for other disposal (t)	21	30
Amount of hazardous waste for disposal (t)	234	213
Total amount of radioactive waste (t)	-	-
Total amount of hazardous waste (t)	238	232
Total amount of waste (t)	1,457	1,266

Total amount of waste for other than disposal (t)	698	717
Total amount of waste for disposal (t)	759	550

Total amount of non-recycled waste (t)	759	550
Proportion of non-recycled waste (%)	52%	43%

The reported volumes of waste streams are based on the legally required waste

accounting, which maintains the volumes of waste transported in weight units. The

figures are based on weighing carried out at the waste reception facility as well as

container volumes, where the weight of the waste is calculated using the volume of the

waste container and the bulk density factor of the waste. The waste includes mixed

waste, energy waste, biowaste, cardboard waste, confidential paper waste, paper, metal

waste, waste electrical and electronic equipment (WEEE), cable waste and hazardous

waste. Hazardous waste includes, among other things, adhesive waste, flue gas

scrubber waste, paint washing water waste, oil waste and solid oil waste.

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Social information

Koskisen’s Human Resources Principles and Code of

Conduct are based on UN Guiding Principles, the

declaration on Fundamental Principles and Rights at

Work of the International Labour Organisation (ILO) and

the OECD Guidelines for Multinational Corporations.

With the principles Koskisen ensures safe and healthy

working conditions in all its places of business for both

its own employees and the employees of its

subcontractors.


ESRS S1 Own workforce ........................................................................	99

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 99

ESRS S1 Own workforce

Material impacts, risks and opportunities and their

interaction with the strategy and business model

ESRS 2 / SBM-3

As described in chapter ESRS 2, Koskisen’s entire own workforce is included within the

scope of Koskisen’s sustainability impacts and sustainability reporting. The actual and

potential impacts as well as the related risks and opportunities arise partly from

Koskisen’s business model, in which industrial work may expose employees to potential

adverse impacts. These impacts, risks and opportunities have been identified and taken

into account in the company’s strategy, where the importance of the community and

the strengthening of Koskisen’s employer image are recognised as key factors. The

strategy and business model are closely linked to risks and opportunities related to own

workforce. The realisation of accident and damage risks at production facilities could

lead to significant compensation liabilities, possible fines and disruptions in delivery

chains, which would directly weaken the company’s financial performance and

customer satisfaction. At the same time, strategic investments in safe operating

practices, responsibility and reliable processes support the continuity of the business

model and strengthen Koskisen’s ability to create value in a predictable manner. In

addition, the company’s ability to generate results is essentially linked to the availability

and retention of skilled and motivated employees. For this reason, building a positive

employer image and promoting employee well-being represent an important

opportunity to improve operational stability, reduce risks related to labour shortages

and industrial action, and support long-term competitiveness and growth. The strategy

includes the key objectives for occupational safety and well-being at work in

accordance with the sustainability programme.

The material impacts concern Koskisen’s own workforce, with particular emphasis on

employees working at production plants. In addition to its own workforce, Koskisen’s

sites also have contractors and their permanent employees. The sites also include self-

employed persons, and at the Polish sites the company also employs temporary

workers. The reporting covers all persons belonging to Koskisen’s own workforce who

could be materially impacted by the company, with regard to the information disclosed

in accordance with ESRS 2.

Koskisen’s material negative impacts arise from working in an industrial environment

and are related to individual cases. People working in the plant environment are

exposed to a higher risk of occupational accidents. In expert work, a higher risk of

exposure to psychosocial stress has been identified. This is taken into account, for

example, in workplace surveys targeted at office environments, and psychosocial risk

factors may also be assessed as part of risk assessments.

Koskisen’s material positive impacts relate to employment and the economic well-

being of surrounding regions as well as the active promotion of occupational well-

being and health. The positive impacts concern the commuting areas surrounding

Koskisen’s locations in Finland and Poland.

The risks related to Koskisen’s material sustainability topics are based on the volatile

climate in the labour market, such as potential industrial action, including strikes.

Furthermore, accident and damage risks in production facilities could, if realised, lead

to Koskisen’s obligation to compensate for losses and delay or disrupt the delivery of

Koskisen’s products and services.

Conversely, a good reputation as a responsible employer creates opportunities through

improved recruitment success, lower workforce turnover and generally higher

employee satisfaction and the resulting productivity.

Koskisen is preparing a transition plan related to climate change mitigation and

adaptation. During the preparation of the transition plan, no specific impacts on the

workforce have been identified. The work is ongoing and will be finalised in 2026, when

any identified impacts will also be presented. The preparation of investment decisions

is supported by assessments in which sustainability aspects, including impacts on own

workforce, are evaluated.

Koskisen has no operations or locations in areas or countries with a significant risk of

forced labour or the use of child labour.

Koskisen’s occupational health and safety management system ISO 45001 includes

processes for managing material negative impacts related to own workforce. In its

employee-related processes, including the assessment of work hazards, Koskisen has

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 100

identified that people working in a plant environment in particular face more actual

and potential negative impacts related to occupational health and safety. These are

defined as work-related physical hazards and accidents, occupational health problems,

and physical, ergonomic and chemical exposures.

Koskisen’s material risks and opportunities related to its own workforce do not concern

a specific personnel group, production plant or country.

Policies related to own workforce

S1-1

Koskisen’s operating policy, Code of Conduct and personnel principles guide the

identification, assessment, management and correction of material sustainability

impacts, and they cover all geographical areas of operations. The management of the

Group and business units is responsible for implementing the policies and the more

detailed principles derived from them. Koskisen’s policies are aligned with the

International Bill of Human Rights, which includes the Universal Declaration of Human

Rights, as well as the International Covenant on Civil and Political Rights and the

International Covenant on Economic, Social and Cultural Rights that implement it.

These principles are integrated into the company’s management system, human

resources practices and value chain management as part of daily business operations.

In its operating policy, Koskisen is committed to excellent working conditions for its

personnel, continuous competence development, well-being at work, safety at work

and investing in health. The significance of quality, environmental and safety issues has

been clearly identified and Koskisen takes responsibility for their maintenance and

development.

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.

The personnel principles set out the main principles for leadership, remuneration,

safety, well-being at work and work ability, culture and equality, competence

development and recruitment and induction. The personnel principles are

supplemented by internal HR instructions. The operating policy and personnel

principles are publicly available on the company’s website in Finnish and English.

The Code of Conduct describes the operating methods and stakeholder-specific

commitments. With regard to own workforce, they commit to ensuring safe and

healthy working conditions at all locations for both own and subcontractors’

employees. In addition, the operating methods include diversity and inclusion, a

respectful and harassment-free working environment, freedom of association, privacy

and commitment to human rights. The operating policy, personnel principles and Code

of Conduct cover the Koskisen Group’s entire personnel without excluding anyone, and

the results of the double materiality assessment have been taken into account in their

preparation, and defined stakeholders, such as the personnel representative, were

consulted. More detailed principles are set out in internal manuals available to

personnel, including the safety manual covering operations in Finland and a separate

occupational health and safety manual. These documents describe Koskisen’s general

principles and operating models for safety and occupational health and safety,

incorporating the requirements of ISO 45001, with particular emphasis on factory

operations. The manuals are updated in cooperation with employee representatives.

Koskisen’s HR principles and Code of Conduct are based on the UN Guiding Principles

on Business and Human Rights, the ILO Declaration on Fundamental Principles and

Rights at Work, and the OECD Guidelines for Multinational Enterprises.

Implementation and compliance are monitored as part of the management system

through, for example, regular risk assessments, occupational safety inspections,

employee surveys and internal audits. Employees and supervisors are provided with

training on occupational safety, equality and ethical conduct to ensure that the

principles are effectively implemented in practice. Possible concerns can be reported

through confidential reporting channels and via employee representatives, and all

reports are handled in accordance with defined procedures. Practices are developed

following the principle of continuous improvement. The implementation of personnel-

related measures and operating models is monitored by the occupational safety

committee.

Koskisen’s personnel principles, Code of Conduct and operating policy describe the

company’s commitments to ensuring the realisation of human and labour rights.

Koskisen promotes equality and non-discrimination in cooperation with employee

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representatives in accordance with the equality and non-discrimination plan updated

in 2025. The implementation of the plan is monitored in the work community group.

In personnel-related matters in Finland, Koskisen’s official dialogue forums are the

Group’s work community group and the occupational safety committee. These include

employee representatives and the company’s operational management. Internal

communication takes place via the intranet. In Poland, dialogue takes place as required

by local regulations in the form of employee meetings. Communication also takes

place via bulletin boards at the sites.

Measures to correct or enable the correction of human rights impacts identified

through risk assessments or other work-related impact identification processes in the

units are prepared annually as part of the action plans related to the implementation of

the personnel principles. These include the equality and non-discrimination plan and

the work community development plan.

All employees have the opportunity to make observations through the Continuous

Development Forum in Finnish and English, and responses are communicated

transparently to all employees. A Polish-language version of the forum is being

introduced.

Koskisen’s policies concerning its own workforce correspond to the UN Guiding

Principles on Business and Human Rights, including the principles concerning

companies’ human rights responsibilities. These international principles are

implemented in practice through compliance with national legislation, to which

Koskisen is committed in all its operations.

In its Code of Conduct, Koskisen commits to ensuring that forced labour or child labour

is not used in its operations, and the same requirement applies to all actors in the

supply chain. Preventing human trafficking is included as part of the company’s

commitment to respecting human rights.

Koskisen’s Code of Conduct also commits the company to ensuring safe and healthy

working conditions for both its own employees and subcontractors at all locations. The

ISO 45001 occupational health and safety management system covering all of

Koskisen’s operations in Finland supports the practical implementation of this

objective. Key tools in Finland include occupational safety and occupational health care

action plans implemented by operational management. In Poland, employees’ ability

to work is ensured through statutory periodic medical examinations.

The Code of Conduct includes a commitment to respecting diversity and treating

people with appreciation and respect. Koskisen does not tolerate harassment,

inappropriate behaviour or workplace bullying. The personnel principles support the

implementation of these commitments, including the elimination of discrimination

and harassment and the promotion of equal opportunities.

According to the personnel principles, age, origin, language, disability, belief, gender,

sexual orientation, religion or ethnic background, political activities, trade union

activities, relationships, family circumstances or other individual characteristics and life

situations must not give rise to discrimination. Race, gender identity, political opinions

and national or social origin have not been separately listed as grounds for

discrimination but are reflected indirectly in the principles. Koskisen has not identified

any particularly vulnerable groups, and the principles do not include specific provisions

regarding the inclusion or positive special treatment of persons in a vulnerable position.

The implementation of anti-discrimination principles is supported through

organisation-wide communication, internal training, the use of reporting channels and

the investigation of violations. Guidelines on harassment and inappropriate behaviour

are in place, and cases are handled in accordance with these procedures. In accordance

with the equality and non-discrimination plan, specific training aimed at increasing

diversity and inclusion will be developed and will be required for all employees.

Supervisors are trained to take equality and non-discrimination aspects into account in

their work. In the Järvelä operations, employment opportunities for people of different

nationalities are supported through a dedicated programme. These principles are

further specified in the Equality and Non-Discrimination Plan, the Workplace

Development Plan, and the Guidelines on Harassment and Inappropriate Treatment.

All detected and reported cases of discrimination are handled immediately in

accordance with the internal guidelines on harassment and inappropriate behaviour

introduced in 2025. In Poland, the preparation of similar guidelines progressed during

2025 and they will be implemented in 2026. The guidelines in Finland were prepared in

cooperation with employee representatives, discussed in the work community group

and introduced internally. The implementation work will continue during 2026. The

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guidelines are currently under consideration in Poland and the measures for

implementation will be agreed during 2026.

Processes for engaging with own workers and workers’

representatives about impacts

S1-2

Koskisen’s main forms of engaging with its own workforce and its representatives

regarding material sustainability topics take place in several ways. These include

continuous supervisory activities, standard meeting practices, the personnel survey

process, safety observations and initiatives related to occupational safety management,

the occupational safety committee, the work community group and employee

representation of the Group’s own workforce operating in Finland in the Group’s

extended Executive Board. Workforce perspectives are taken into account through the

above processes, in accordance with local legislation.

Formal engagement takes place with employee representatives in both Finland and

Poland. The representative of the Group’s own workforce is part of the Group’s

extended Executive Board for the Finnish operations. The Group’s occupational safety

committee and the work community group meet four times a year in Finland for a joint

dialogue, in which all personnel groups are represented. In Poland, representatives

elected from among employees participate in the negotiations and represent the

personnel in common matters. With regard to the Polish sites Polish legislation does

not require the establishment of a separate health and safety working group in

companies with fewer than 250 employees.

The Group CEO is responsible for communication within the extended Executive Board.

The HR Director is responsible for the other communication processes described above.

Koskisen assesses the effectiveness of communication mainly through an annual well-

being at work survey that covers the entire Group’s personnel. The effectiveness of

communication is assessed from different perspectives in the light of its results.

In addition, the functionality of communication is assessed from the perspective of the

company-specific collective agreement and its achievement. The conclusion of a

company-specific collective agreement is the result of effective communication and

the parties’ views meeting.

Processes to remedy the negative impacts and channels for

own workers to raise concerns

S1-3

Processes and channels for remedying negative impacts

The areas related to the prevention and remediation of negative impacts concerning

safety and health are part of Koskisen’s management system in accordance with the

ISO 45001. The principles are implemented within the line organisation by unit and

department. The unit manager is responsible for the instructions. Koskisen’s safety

manual covers descriptions of the planning, implementation and assurance of

occupational safety.

Assessment of work hazards

The safety manual includes the rescue plan and its related instructions, such as site-

specific rescue plans, safety organisation, occupational safety, fire protection, chemicals,

boilers and pressure vessels, occupational health, data protection, property protection

and security, civil defence and crisis preparedness, as well as communication and

procedural instructions for disruption and accident situations. The instructions

described in the safety manual are implemented in accordance with national

legislation and practices in order to support the application of the principles.

A separate occupational safety and health manual describes Koskisen’s general

occupational safety and health policies. The manual, together with the measures and

documents referred to in it, forms Koskisen’s general occupational safety and health

programme. The occupational safety and health manual describes the implementation

of corrective actions in accordance with the incident reporting policy, ensuring that the

effectiveness of corrective actions can be monitored in line with the requirements of

the management system. Examples of practical processes include the identification

and assessment of work hazards, risk assessment and workplace surveys carried out in

cooperation with occupational health care, through which negative impacts are

reduced. Personnel representatives participate in the processes described.

Members of Koskisen’s own workforce can raise their concerns or needs either to an

employee representative, to an occupational safety delegate elected by the personnel,

or directly to the company through reporting channels. Concerns and needs addressed

directly to Koskisen are handled through the Continuous Development Forum

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maintained by the company, which is visible to personnel and through which

observations can be submitted. For the Sawn Timber Industry segment, the

Continuous Development Forum was not yet fully available to Iisvesi personnel during

2025, and a separate model originating from Iisveden Metsä was used there for

handling observations.

Koskisen also has an anonymous whistleblowing reporting channel separate from day-

to-day management, which is available for example through Koskisen’s website. The

Continuous Development Forum and the anonymous reporting channel are jointly

administered by Koskisen and the software provider. Employee representatives are

elected by the personnel groups they represent through an independent election

process and together with employer representatives form the occupational health and

safety organisation.

Koskisen’s anonymous whistleblowing channel serves as the company’s official

reporting and grievance mechanism for misconduct for stakeholders. In addition, all of

the communication channels described above can be used to raise concerns and

promote their resolution. During 2025, the grievance mechanism related to personnel

was further developed so that reports can be submitted confidentially and

anonymously, including separate reporting of harassment and discrimination cases.

The confidentiality of the handling process is ensured by the HR and Legal and

Compliance Director together with the HR department. Koskisen’s approach to

improving the availability of reporting mechanisms among its own workforce is based

on ensuring sufficient accessibility through both internal and external channels. The

whistleblowing channel is clearly available both on Koskisen’s intranet and on the

company’s website.

Concerns and needs addressed directly to Koskisen are recorded and processed

through the Continuous Development Forum. The processing of cases is monitored

continuously and reported annually to the company’s management. Concerns and

observations raised through the whistleblowing channel are handled through a

separate case-specific process. Monitoring of the channel and ensuring the handling of

cases are the responsibility of the company’s Administrative Secretary and General

Counsel. If cases require compliance with whistleblower protection legislation or

concern a member of the Executive Board, they are reported directly to the Chair of the

Board of Directors and the Chair of the Audit Committee.

Through clear communication and management practices, Koskisen aims to promote

the highest possible level of awareness and trust in the channels for reporting concerns

and grievances. Information on these channels is introduced to the company’s own

workforce across the Group at the beginning of the employment relationship. Koskisen

does not currently have practices for assessing awareness of the channels. The

company does not have specific written policies for protecting employees from

retaliation.

Both the Continuous Development Forum and the whistleblowing channel allow

anonymous reporting. Koskisen’s Code of Conduct includes a commitment to

operating practices that prevent retaliatory actions. The identity of the whistleblower

will not be disclosed to the recipient unless the whistleblower chooses to disclose it.

Reports of potential violations are handled strictly confidentially and anonymously as

far as possible. According to its Code of Conduct, Koskisen does not tolerate

harassment, inappropriate behaviour or workplace bullying.

Taking action on material impacts on own workforce, and

approaches to mitigating material risks and pursuing

material opportunities related to own workforce, and

effectiveness of those actions

S1-4

Actions to continuously improve occupational safety and prevent

harm

The continuous improvement of occupational safety in the short, medium and long

term is based on ongoing and daily occupational safety activities. The permanent

objective is zero accidents. Communication, safety observations, clear supervisory

practices and systematic safety management, including risk mapping and proactive

risk prevention, play a central role in improving occupational safety. Every employee is

encouraged to make safety initiatives, which supports the development of a shared

safety culture. Key actions focus on prevention, and corrective actions in individual

cases are addressed as part of the Group’s continuous development within the

business units.

Koskisen’s key actions for achieving accident-free everyday work are based on the

occupational safety action plans defined at the Group level and for all of the Group’s

operations (Panel Industry, Sawn Timber Industry and wood procurement). The action

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plans include short-term actions, responsibilities and targets for the calendar year

across all geographical areas.

Key implemented and planned continuous actions in 2025

Koskisen organises a regular monthly safety review for supervisors and compiles a

monthly safety report. These reviews analyse accidents and near-miss situations and

share good practices. The aim of this cooperation model is to further improve the safety

of the working environment. Safety meetings are held regularly within and between

business operations. Safety issues are also discussed with other companies and

through broader dialogue beyond the company itself, enabling the development of

practices based on shared experiences. Koskisen has its own safety incentive system. In

this system, employees receive a daily monetary reward for each week during which no

accidents leading to absence occur.

Occupational safety training continued for all personnel. The occupational safety card

training is renewed every five years to ensure up-to-date safety competence among

personnel. During 2025, the training was further developed to ensure that the topics

most relevant and current for Koskisen’s operations are included. Additional

comprehensive training included safety training on lifting equipment and lifting

accessories for all employees using them in their work.

Accident statistics and safety observations were used more systematically in the

planning of safety development projects. During the year, particular attention was

given to improving movement safety and to the safety of working methods. In the

Panel Industry operations, head protection introduced in 2025 as part of personal

protective equipment effectively prevented head injuries.

The investigation of accidents and near-miss situations was strengthened as part of

continuous safety development. Personnel were actively encouraged to make safety

initiatives and to contribute to strengthening a shared safety culture. Attention was

also directed to improving the safety of tools, machinery safety and maintenance work,

with a particular focus on the safety of working at height and in exceptional situations.

The development of the safety culture and the related change in operational culture

have been identified as key areas for improvement.

The expected impact of the actions described above is improved occupational safety

measured using Koskisen’s safety metrics. The implementation of these actions

improves occupational safety, as they collectively prevent potential negative impacts

and enhance safety across all time horizons. The actions described apply to all locations

and to all production employees and salaried personnel. The actions do not cover other

parts of the value chain.

The effectiveness of the measures is monitored regularly through safety observations,

lost-time accidents (LTA1) and the documentation of near-miss situations. These

monitoring data are used in the work of the occupational safety committee and the

safety groups of individual units, as well as in monthly safety reviews and in monitoring

the implementation of agreed actions.

Implementation of corrective actions

Koskisen maintains a high level of preparedness in accordance with its occupational

safety system to respond to accidents and to mitigate and remedy their impacts,

including a high level of first aid readiness, occupational safety operating models and

instructions, and the resources of the occupational safety organisation. Koskisen

ensures that personnel have adequate first aid readiness in accordance with Finnish

occupational safety and occupational health care legislation and the Polish Labour

Code.

In the event of an occupational accident, appropriate medical treatment is always

provided and the injured person may receive compensation through insurance. Due to

privacy protection, Koskisen does not have detailed information on the monetary

compensation amounts. All accidents are handled on a case-by-case basis and the

necessary corrective actions are defined within the business units. The effectiveness of

these actions is monitored and evaluated as part of Group processes, including annual

management reviews and monthly safety reviews. Further information on the handling

of discrimination cases is presented in section S1-17 Incidents, complaints and severe

human rights impacts.

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

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work and both organisation-wide and targeted well-being programmes implemented

at all sites. Ongoing activities also include effective occupational safety cooperation and

a shared occupational safety action plan. Key elements in improving well-being at work

include the early support model, preventive actions and strengthening a sense of

community.

Key implemented and planned continuous actions in 2025

The key implemented and planned actions respond not only to negative impacts but

also support Koskisen’s strategic objective of being an attractive and fair employer that

has a positive impact on its own workforce. The employee well-being survey serves as

one of the most important management indicators and tools. The results were

reviewed thoroughly within all teams under the leadership of supervisors. Supervisors

received coaching on analysing the results and had the opportunity to use facilitators

for support. The 2025 survey was updated and expanded to enable better

customisation of company-specific questions. The survey was conducted at the end of

2025 and the results will guide actions for 2026.

In 2025, the Group’s common objective was to increase open and effective

communication during change situations. This theme was addressed in development

discussions and throughout the year. As a targeted well-being initiative, the Koskisen

Kohottajat group programme was implemented with eight participants. Teams also

defined their own well-being development priorities for the year. In 2025, the

implementation of the Koskisen Konkarit programme continued. Eight employees

participated during the reporting year in the programme designed for employees

whose work ability is at risk. The one-year programme focuses on maintaining work

ability and supporting continued participation in working life.

In October, an international group of seven employees began working at the Järvelä

operations. Supervisors and instructors received support in working with non-Finnish-

speaking employees. The development of the onboarding process continued through

the creation of online courses in Koskisen’s training platform and by clarifying the

onboarding process. During 2025, a network of 18 onboarding instructors for

production personnel was established in Finland, and the network will start operating

at the beginning of 2026.

A sense of community was strengthened through various means, including supporting

team activities with team funding and organising a shared barbecue event.

Physical activity and well-being benefits continued to be offered. Koskisen supports the

overall well-being of its personnel by providing access to its own gym and swimming

opportunities at the Kärkölä swimming hall. In addition, the company supports

employee well-being through the ePassi benefit. The key actions described above

mainly cover Koskisen’s operations in Finland with regard to its own workforce. In

Poland, Koskisen offers employees various benefits through the Social Benefits Fund

(ZFŚS), including holiday allowances, Christmas bonuses and Christmas packages for

employees’ children. In 2025, voluntary private health care was introduced in Poland,

providing employees access to 25 medical specialists, several examinations and

preventive health monitoring. The “Fruit Tuesday” initiative promoting healthy eating

habits continued.

Koskisen’s actions to promote well-being at work cover all business areas and functions

of the company. The actions are structured across three time horizons and emphasise

both immediate impacts and longer-term preventive measures that strengthen the

foundations of well-being at work. The actions apply to all employees, although some

initiatives focus on specific groups. Supervisors received training on analysing

employee well-being survey results. The actions focus on Koskisen’s own workforce and

do not extend to other parts of the value chain.

Koskisen monitors and evaluates its well-being initiatives in multiple ways. Monitoring

of attendance and turnover indicators supports the monitoring of overall well-being

and enables early responses. The results of the well-being survey are used as a

management tool and for monitoring the effectiveness of actions. The implementation

of development priorities defined by teams is monitored regularly. The effectiveness of

targeted well-being programmes, such as Koskisen Konkarit, is assessed at the end of

the programme. The effectiveness of work ability management is monitored in

accordance with the early support model. The early support process has been reviewed

with supervisors and employee representatives, and the impacts of onboarding

development are monitored as part of normal management practices. All the actions

described above improve well-being at work by preventing work ability issues,

supporting early intervention and strengthening community and competence.

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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. Together with employment services and

educational institutions, tailored solutions were developed to reach international

jobseekers and support their employment. Through company presentations, events on

education and career paths and other stakeholder engagements, Koskisen openly

presents its operations and builds long-term interest in the company. These actions

support the availability of skilled labour, a positive employer image and the company’s

long-term competitiveness.

With regard to freedom of association and the potential risk of strikes derived from it,

no separate actions were implemented during the reporting year.

Identification and management of negative impacts

Koskisen ensures the safety of its operating practices through systematic monitoring

and proactive risk management. The company actively monitors developments in

occupational safety legislation and complies with its requirements.

Regular dialogue with key stakeholders, such as occupational health care and

employee representatives, forms an essential part of ensuring safety. The health and

safety of the working environment are systematically assessed through workplace

surveys carried out every three years.

The management of chemical risks is an important part of safety work. In the

procurement process for new tools and safety equipment, both personnel and their

representatives as well as occupational health care are consulted to ensure that the

equipment is suitable and safe for its intended use. Chemical risks are also assessed

separately at the level of individual workstations.

Resources allocated to managing negative impacts

Resources related to the continuous improvement of occupational safety and well-

being at work consist, in accordance with Koskisen’s management system, of the

responsibilities and work of management and supervisors under the ISO 45001

management system. Safety managers operating at Koskisen’s sites represent a

dedicated resource for occupational safety management. The key actions described are

part of Koskisen’s daily operations and no separate CapEx or OpEx allocations have

been made for them beyond these resources.

The company set strategic targets in 2024 and their progress is monitored as an

indicator of the effectiveness of the actions. Monitoring is described in section S1-5.

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Targets related to managing material negative impacts,

advancing positive impacts, and managing material risks and

opportunities

S1-5

The targets presented in the table below correspond to the objectives defined in the

personnel principles, which take into account material sustainability aspects. These

objectives are presented in section S1-1. The targets apply only to Koskisen’s own

personnel at all of its locations and do not cover the upstream or downstream value

chain. When setting the targets, the current status and development of these aspects

within the Group have been taken into account. The development of occupational

accidents is also monitored in relation to other companies in the industry. The targets

set do not as such directly correspond to all material impacts, risks or opportunities but

form part of the overall monitoring framework through which the themes identified are

monitored and managed. Negative and positive impacts on employees’ health and

well-being are managed indirectly by monitoring the overall score and response rate of

the employee well-being survey, the lost-time accident frequency (LTA1) and the

development of training hours. The promotion of positive impacts related to Koskisen’s

position as a significant employer in surrounding areas can also be indirectly assessed

through the development of training hours, which supports the development of

employees’ competence. Risks related to health and safety are managed by monitoring

the lost-time accident frequency (LTA1). Opportunities related to a positive employer

image are promoted by monitoring the development of well-being at work through

the results of the employee well-being survey. No specific target has been set for

managing risks related to industrial action, such as strikes. Stakeholders have not been

separately consulted when setting the targets. The targets do not require significant

changes to the company’s operations or to the measurement of the targets, but are

implemented as part of daily operations.


S1 Sustainability topics related to own workforce	Target 2027 Covers the entire Koskisen Group	Base year 2022	2025	2024	Aspects related to targets
Reduction of accidents	Accident frequency rate LTA1 < 5	19.40	15.08	9.70	The target is based on the operating policy and personnel principles, described in section S1-1
Well-being and health of employees	Overall score in the well-being at work survey > 4	3.85	3.80	3.81	The target is based on the operating policy and personnel principles, described in section S1-1
Well-being and health of employees	Well-being at work survey response rate > 90%	76%	73%	78%	The target is based on the operating policy and personnel principles, described in section S1-1
Developing the competence of personnel	Training hours/person > 18	11.48	10.00	8.15	The target is based on the operating policy and personnel principles, described in section S1-1
Equal and non-discriminating work community	Diversity, equity and inclusion awareness development through internal training 100% of the workforce	New target for 2024	Training was not yet available in 2025	New target from 2024	The target is based on the operating policy and personnel principles, described in section S1-1

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 108

The targets related to the company’s own workforce have been set in the sustainability

programme based on the insights obtained from the double materiality assessment.

The company’s Executive Board and a selected group of representatives from different

functions were responsible for setting the targets. Employees or their representatives

were not separately engaged in setting the targets.

The implementation of actions and targets is monitored four times a year in the work

community group and the extended Executive Board, both of which have employee

representation. Occupational safety is also monitored monthly in the Group’s safety

reviews. Continuous monitoring of implementation includes monitoring progress,

identifying and documenting any deviations and making any necessary changes to

implementation.

No single explanatory factor has been identified for the deterioration in the safety

indicator. Overall, the development is influenced by the day-to-day decisions of

individual employees and the safety culture that guides these decisions, the

development of which has been recognised to take time. Efforts to improve

performance towards the target continue through active safety communication,

systematic monitoring and the strengthening of safety practices.

The overall result of the employee well-being survey remains at a good level. The

response rate decreased slightly compared to the previous survey, which was

influenced by the introduction of a new, more extensive survey format conducted using

personal survey links instead of the previously used open survey format.

With regard to the realised number of training hours compared to the set target, it has

been identified that training hours related to competence development have not been

systematically recorded. The reported training hours therefore only include registered

classroom trainings and online trainings.

Diversity, equity and inclusion training has not yet been implemented for 2025, and

therefore progress towards this target cannot yet be monitored.

Characteristics of the company’s employees

S1-6

Koskisen’s HR department is responsible for the collection, maintenance and reporting

of personnel data. The personnel system is used for the administration of personnel

data, and it is where the data is stored. Reporting includes information about

employees in employment relationships with the Group. No significant assumptions or

limitations are associated with the compilation of the data.

Number of employees by gender


	Number of employees (head count)
Gender	2025	2024
Men	720	669
Women	294	274
Other	-	-
Not reported	-	-
Total number of employees	1,014	943


Rate of employee turnover	2025	2024
Terminated employment relationships	61	66
Exit turnover	6.0%	7.0%

Number of employees (head count)


	Number of employees (head count)
Country	2025	2024
Finland	869	796
Poland	130	131

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 109

Employees by contract type, broken down by gender


	2025					2024
	Men	Women	Other	Not reported	Total number of employees	Men	Women	Other	Not reported	Total number of employees
Number of employees in employment (head count / FTE)	720	294	-	-	1,014	669	274	-	-	943
Number of permanent employees (head count / FTE)	659	247	-	-	906	620	243	-	-	863
Number of temporary employees (head count / FTE)	62	46	-	-	108	49	31	-	-	80
Number of non-guaranteed hours employees (head count / FTE)	31	17	-	-	48	19	12	-	-	31
Number of full-time employees (head count / FTE)	686	272	-	-	958	650	262	-	-	912
Number of part-time employees (head count / FTE)	3	5	-	-	8	6	4	-	-	10

Number of employees by contract type, broken down by country


	2025				2024
	Finland	Poland	Other	Number of employees (head count / FTE)	Finland	Poland	Other	Number of employees (head count / FTE)
Number of employees in employment (head count / FTE)	869	130	15	1,014	796	131	16	943
Number of permanent employees (head count / FTE)	824	67	15	906	783	64	16	863
Number of temporary employees (head count / FTE)	45	63	-	108	13	67	-	80
Number of non-guaranteed hours employees (head count / FTE)	48	-	-	48	31	-	-	31
Number of full-time employees (head count / FTE)	813	130	15	958	765	131	16	912
Number of part-time employees (head count / FTE)	8	-	-	8	10	-	-	10

Employee data has been collected from the company’s HR and payroll systems. The

number of employees is expressed as the head count on the last day of the reporting

period. In the sustainability statement, the number of employees is the personnel

situation on 31 December 2025, and in the financial statements, the number of

employees is the average for the full year, i.e. the 12-month average. The full-time

equivalent is not calculated separately, as the majority of employment relationships are

full-time. The compilation of data does not involve any assumptions; the data is

compiled directly from the system data.

The reported year-end personnel figures do not include the 57 summer employees who

worked at Koskisen during the summer 2025.

Information on the number of employees can be found in Note 6 to Koskisen’s

consolidated financial statements.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 110

Collective bargaining coverage and social dialogue

S1-8

Collective bargaining coverage and social dialogue Information on the personnel’s

inclusion in collective agreements can be found in Koskisen’s personnel system based

on the job description, and the disclosed information does not include assumptions or

limitations. The number of employees can be found in table S1-6 Number of employees

by contract type, broken down by country 2025.


	Collective bargaining coverage		Social dialogue
Coverage rate:	Employees – EEA (for countries with more than 50 employees representing more than 10% of total employees)	Employees – non-EEA (estimate of regions with more than 50 employees representing more than 10% of total employees)	Workplace representation (EEA only) (countries with more than 50 employees representing more than 10% of total employees)
0–19%	Poland (2024: Poland)
20–39%
40–59%
60–79%
80–100%	Finland (2024: Finland)		Finland, Poland (2024: Finland, Poland)

In Finland, Koskisen’s production employees, salaried employees and forestry salaried

employees are covered by company-specific collective agreements, one of which is for

production employees and salaried employees and the other for forestry salaried

employees. Senior salaried employees and management are subject to terms of

employment agreed in the company.

There are no similar universally binding collective agreements or company-specific

solutions based on them in the Polish labour market. Koskisen complies with the

general labour legislation in Poland, in addition to which company-specific policies

concerning work and remuneration are applied to all employees with regard to work,

employment relationship, working conditions and salary.

Koskisen has no agreements with employees on representation that would be handled

by a European Works Council, European Company (SE) Works Council or European

Cooperative Society (SCE) Works Council.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 111

Diversity metrics

S1-9

Information on personnel diversity is obtained from Koskisen’s personnel system, and

the disclosures do not involve assumptions or limitations.

Gender distribution at top management


	2025		2024
	Head count	%	Head count	%
Top management, women	5	29%	3	18%
Top management, men	12	71%	14	82%
Top management, others	-	-%	-	-%
Top management, not reported	-	-%	-	-%
Top management, total	17	100%	17	100%

Age distribution among employees


	2025		2024
	Head count	%	Head count	%
Under 30 years old	155	15%	155	16%
30–50 years old	542	53%	490	52%
Over the age of 50	317	31%	298	32%
Head count by age	1,014	100%	943	100%

Koskisen Corporation’s top management consists of the Board of Directors and the

CEO with the support of the Executive Board.

Adequate wages

S1-10

All Koskisen employees are paid adequate wages in accordance with the applicable

benchmarks. In Poland, adequate pay is ensured by complying with legislation that

defines the minimum wage, and in Finland through local collective wage agreements.

Social protection

S1-11

All Koskisen employees are covered by social protection through public programmes or

benefits provided by the company in the event of loss of income due to illness,

unemployment, work-related injury or disability, parental leave or retirement.

Training and skills development metrics

S1-13

Information on employee performance reviews and training hours is obtained from

Koskisen’s personnel system. Performance reviews are recorded by supervisors on the

basis of the reviews. The information disclosed regarding training hours is based on

supervisors’ notifications. Both types of information may involve uncertainty regarding

the flow of information, and not everything is necessarily recorded.

Percentage of performance review participants


	2025		2024
	Head count	% of total head count
Performance review participants, women	127	13%	177	19%
Performance review participants, men	277	27%	393	42%
Performance review participants, other	-	-%	-	-%
Performance review participants, not reported	-	-%	-	-%
Performance review participants, total	404	40%	570	60%

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 112

Number of training hours per employee


	2025	2024
Number of training hours per employee, women	13	10
Number of training hours per employee, men	8	7
Number of training hours per employee, other	-	-
Number of training hours per employee, not reported	-	-
Number of training hours per employee, all	10	8
Number of training days	1,215	1,199

Health and safety metrics

S1-14

Health and safety metrics

Health and safety data are compiled from Koskisen’s personnel system and the

Continuous Development system, where information on occupational accidents and

their processing is recorded. The data are collected for all personnel. The transitional

rule is applied to non-employees.

The overall score and response rate of the employee well-being survey, the number of

lost-time occupational accidents (LTA1), and the lost-time injury frequency rate (LTAF1)

are the Group’s own metrics related to its sustainability targets, which are presented in

section S1-5. Occupational accidents (LTA 1) are defined as accidents that result in at

least one day long absence. The Lost Time Accident Frequency (LTAF1) is reported per

one million hours worked. The number of occupational accidents (TRI) includes

accidents that result in a medical check-up. Thus, the figures do not include accidents

in which health care was not involved. The personnel satisfaction survey covers all

personnel, but there may be uncertainties related to the responses due to the survey

language, which is English, and not the workers’ native languages.


	2025	2024
Percentage of Koskisen’s own workforce covered by the occupational health and safety management system	100%	99%
Number of fatalities as a result of work-related injuries and work-related ill health, own employees	-	-
Number of fatalities as a result of work-related injuries and work-related ill health, other employees working on the company’s sites	-	-
Number of recorded occupational accidents (LTI), own employees	45	28
Share of recorded occupational accidents (LTIF) related to own workforce	28.3	20.8
Number of cases of work-related ill health – employees	-	-
Number of cases of work-related ill health – non- employees	-	-
Number of days lost to work-related injuries and fatalities from work-related accidents, work-related ill health and fatalities from ill health, employees	306	91
Number of days lost due to accidents, work-related ill health or fatalities – non-employees	-	-
Number of work‑related ill health cases subject to legal restrictions – employees	-	-


Group’s metrics	2025	2024
Number of lost time accidents (LTA1)	25	13
Frequency of lost time accidents (LTAF1)	15.70	9.68
Employee wellbeing survey response rate	73.2%	78.2%
Overall score of the employee wellbeing survey eNPS	3.80	3.81
Attendance rate	95.4%	93.0%
² The name of the satisfaction survey has been changed

The occupational health and safety management system covering Koskisen operations

in Finland complies with the ISO 45001 standard and has been audited by the external

verifier Kiwa.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 113

Work-life balance metrics

S1-15

The data concerning work-life balance metrics are obtained from Koskisen’s personnel

system, and the disclosures do not involve assumptions or restrictions.

All Koskisen’s employees are entitled to family leave under social policy and/or

collective agreements.

Percentage of employees that took family-related leave by gender


	2025	2024
	%	%
Percentage of employees that took family leave, women	1.4%	1.4%
Percentage of employees that took family leave, men	2.7%	1.8%
Percentage of employees that took family leave, other	-%	-%
Percentage of employees that took family leave, not reported	-%	-%
Percentage of employees that took family leave	4.0%	3.2%

Incidents, complaints and severe human rights impacts

S1-17

Disclosed incidents are obtained either through the company’s whistleblowing

channels or on the basis of reports made to supervisors. Incidents, including reports

from external parties, are recorded in the Continuous Development system, where case

processing is maintained. The recorded incidents are based on reports and possible

external audits and do not involve any significant background assumptions or

restrictions.

Incidents, complaints and severe human rights impacts


	2025	2024
Number of incidents of discrimination	-	2
Number of incidents of harassment (included in incidents of discrimination)	-	-
Number of non-harassment incidents (included in incidents of discrimination)	-	2
Number of complaints reported through personnel channels	4	10
Number of complaints reported to the National Contact Points for OECD Multinational Enterprises	-	-
Fines and compensation for damages for incidents of discrimination and complaints	-	-
Number of severe human rights incidents	-	-
Number of serious human rights incidents that are cases of non-respect of the UN Guiding Principles on Business and Human Rights or ILO Declaration on Fundamental Principles and Rights at Work	-	-
Fines, penalties and compensation for damages for serious human rights incidents	-	-

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 114

Governance

information

Koskisen’s business operations are guided by an

operating policy and a Code of Conduct approved by

the Board of Directors, which define the principles

governing the company’s business conduct, corporate

culture, and the prevention of corruption and bribery.

The principles are based on internationally recognised

frameworks, including the UN Guiding Principles on

Business and Human Rights, the ILO Declaration on

Fundamental Principles and Rights at Work, and the

OECD Guidelines for Multinational Enterprises.


ESRS G1 Business Conduct ..................................................................	115

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 115

ESRS G1 Business Conduct

Business conduct policies and corporate culture

G1-1

Ethical business conduct and acting in accordance with it form the foundation of

Koskisen’s business and are part of its normal operations. The company establishes and

develops its corporate culture as part of its governance model and the conduct of

business. The Board of Directors is responsible for defining the corporate culture and

the ethical principles guiding business conduct and for linking them to the company’s

strategy, governance principles and sustainability objectives.

The implementation and development of the corporate culture are integrated into the

company’s management structures. The Executive Board and managers are

responsible for ensuring that business activities are conducted in accordance with the

guidelines set by the Board of Directors, the approved policies and applicable

regulation.

Corporate culture is promoted through internal communication, training, employee

engagement and management practices. The company seeks to ensure that its own

workers have a clear understanding of operating practices, responsibilities and the

expected standards of business conduct.

The effectiveness of the corporate culture is evaluated as part of internal control and

risk management processes. The Board of Directors regularly reviews the

appropriateness of the governance model and management practices, and oversees

that the corporate culture supports the company’s business operations, sustainability

objectives and long-term value creation.

Koskisen’s Operating Policy and Code of Conduct, which apply to all of Koskisen’s

operations and geographical locations, define the principles governing business

conduct, the development of corporate culture and the prevention of corruption and

bribery. These policies take into account internationally recognised standards and

guidelines. The company operates in accordance with, among others, the United

Nations Guiding Principles on Business and Human Rights, the International Labour

Organization’s Declaration on Fundamental Principles and Rights at Work and the

OECD Guidelines for Multinational Enterprises. In addition, the company’s operations

are guided by certified management systems ISO 9001, ISO 14001 and ISO 45001.

The company’s Operating Policy brings together the Group’s governance principles

and responsible business practices. It covers the company’s values – trust, courage,

creativity and performance – as well as ethical principles, quality, safety, employee well-

being, environmental responsibility and responsible operating practices.

The Code of Conduct forms the foundation for responsible business conduct and is

based on Koskisen’s values. Suppliers and business partners are required to commit to

the Supplier Code of Conduct, which complements the company’s own principles and

obliges partners to operate responsibly throughout the value chain. In its Code of

Conduct, Koskisen commits to conducting business honestly, lawfully and ethically in

all its operating countries and across its value chain without exception.

The policies and principles are approved by the Board of Directors, and the

implementation and reporting to the Board are the responsibility of the business unit

directors who are members of the Group’s Executive Board.

Stakeholder perspectives have been considered in the preparation of the policies and

principles as part of the double materiality assessment. The policies and principles are

publicly available to all stakeholders on the company’s website, and their relevance and

effectiveness are reviewed and developed in accordance with the principle of

continuous improvement.

The prevention of corruption and bribery is addressed in the Code of Conduct derived

from the Operating Policy and applicable to the entire Group. The implementation of

the Code of Conduct is supported by reporting channels through which own workers

and other relevant stakeholders may report potential misconduct or breaches of the

Code of Conduct confidentially and, where desired, anonymously. These include a

separate whistleblowing reporting channel and a confidential section of the company’s

internal Continuous Development reporting channel, through which reports can also

be submitted regarding harassment and discrimination. Access to the reports is

restricted to a limited number of authorised persons.

Concerns and observations submitted through the whistleblowing channel are

handled through a separate process on a case-by-case basis in accordance with

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 116

internal guidelines designed to protect whistleblowers. Reports are investigated

independently and objectively by internal or external experts. Monitoring of the

channel and the handling of cases are the responsibility of the company’s

Administrative Secretary and General Counsel in accordance with the relevant

operating guidelines. There are no separate documented induction procedures for

personnel responsible for handling the channel data. If a report falls within the scope of

whistleblower protection legislation or concerns a member of the Executive Board, it is

reported directly to the Chair of the Board of Directors and the Audit Committee.

Training and guidance related to the Continuous Development channel are the

responsibility of the Chief Human Resources Officer and the Director of Quality,

Environment and Safety in cooperation with the HR department.

Through clear communication and leadership, Koskisen aims to promote awareness of

and trust in the channels for reporting concerns and grievances. Information about the

channels is introduced to the company’s own workforce at the beginning of the

employment relationship across the Group. Koskisen does not currently have formal

practices for assessing awareness of the reporting channels. The Code of Conduct

includes a commitment to operating methods aimed at preventing retaliation, and the

whistleblowing channel also clearly states that Koskisen does not tolerate retaliation

against whistleblowers. The right of individuals to raise concerns is therefore

safeguarded. Reports of potential violations are handled strictly confidentially and

anonymously as far as possible. The protection of whistleblowers is ensured in

accordance with Directive (EU) 2019/1937 through the confidential handling of the

whistleblower’s identity, restricted access to report data and oversight of the handling

of reports at the Board level in accordance with the whistleblowing channel

procedures. Issues related to business conduct incidents, including corruption and

bribery cases, are handled on a case-by-case basis, and no separate procedure beyond

the whistleblowing channel has been defined for addressing such cases.

Familiarisation with the Code of Conduct, including the prevention of corruption and

bribery, is part of the employee onboarding programme. An internal online training

available in Finnish and English ensures awareness of the principles and their practical

application. Completion of the training is mandatory for all members of the workforce,

including management, as part of the onboarding of new employees, and it must be

completed every four years. Administrative bodies are not included in Koskisen’s

training system.

For operations in Poland, the Code of Conduct is reviewed at the beginning of the

employment relationship in connection with the employment contract, but no

separate training in Polish is currently available.

The most significant risks related to corruption and bribery mainly concern activities

involving financial decision-making and contractual and procurement decisions.

The company has not set a separate target related to the identified material impact;

however, developments related to the matter are monitored continuously through

dialogue with suppliers and customers and through annual contract processes. The

topic is also assessed through stakeholder engagement related to sustainability matters.

Prevention and detection of corruption and bribery

G1-3

Koskisen does not accept corruption, bribery or other unethical conduct in any form.

The company operates in an honest and transparent manner in all of its relationships

and seeks to ensure that its own workers, subcontractors and suppliers commit to the

same ethical principles.

The prevention, detection and handling of corruption and bribery are part of Koskisen’s

internal control environment and operating practices. The company has procedures

and controls in place related, among other things, to the travel policy, the approval

practices for expenses and payments, and the monitoring of payment transactions.

Potential irregularities are addressed as part of day-to-day management. These

measures are intended to ensure appropriate internal control and to prevent

misconduct in advance.

Koskisen does not have a separate anti-corruption and anti-bribery procedure

describing investigators responsible for investigations and their independence from

the chain of management involved in the matter, nor a formal process for reporting

investigation outcomes to the administrative, management and supervisory bodies.

Instead, potential allegations or incidents are addressed in accordance with the

procedure described in section G1-1 when reports are submitted through the channels

described therein, or they are handled on a case-by-case basis within the relevant

business operations. Training related to corruption and bribery is described in

section G1-1.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 117

With regard to contractors and suppliers, the Supplier Code of Conduct forms part of

contractual agreements as a separate annex. Koskisen’s Code of Conduct is publicly

available on the company’s website.

Incidents of corruption or bribery

G1-4

Potential cases of corruption and bribery may come to the company’s attention

through its internal processes, the whistleblowing reporting channel or a dedicated

email channel.

Anti-corruption and anti-bribery training is not provided as a separate topic-specific

training but is included as part of the training on the Code of Conduct, where the topic

is addressed briefly as part of the overall content. The completion rate of the training

reflects the share of white-collar employees, senior white-collar employees and

members of the Executive Board who have completed the Code of Conduct training

across all geographical operating areas.


Incidents of corruption or bribery	2025	2024
The number of convictions for violations of anti- corruption and anti-bribery laws	-	-
The amount of fines imposed for violations of anti- corruption and anti-bribery laws (€)	-	-
Actions taken to address breaches of anti-corruption and anti-bribery procedures and standards	-	-


	2025	2024
Completion rate of anti-bribery and anti-corruption training (%)	81.5%	-%

The Consolidated and

parent company’s

Financial Statements

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 119

Table of Contents


Consolidated Financial Statements (IFRS) ..............	120
Consolidated statement of comprehensive income ....	120
Consolidated balance sheet ..................................................	121
Consolidated statement of changes in equity ...............	122
Consolidated statement of cash flows ..............................	124


Notes to the Consolidated Financial Statements .	125
1. General information and basis of preparation ............	125
2. Segment information and revenue ................................	128
3. Financial risk and capital management .......................	130
4. Other operating income ....................................................	135
5. Materials and services .........................................................	135
6. Employee benefit expenses ..............................................	136
7. Share-based incentive plans .............................................	137
8. Depreciation, amortisation and impairment ..............	140
9. Other operating expenses .................................................	140
10. Finance income and costs ...............................................	141


11. Income tax ..............................................................................	142
12. Property, plant and equipment ......................................	146
13. Forest assets ..........................................................................	149
14. Leases ......................................................................................	149
15. Intangible assets ..................................................................	152
16. Inventories .............................................................................	153
17. Other receivables .................................................................	154
18. Assets held for sale ..............................................................	154
19. Equity .......................................................................................	155
20. Earnings per share .............................................................	156
21. Financial assets and liabilities .........................................	157
22. Provisions ...............................................................................	161
23. Other payables .....................................................................	162
24. Group structure ...................................................................	162
25. Related party transactions ..............................................	164
26. Contingent liabilities and commitments ...................	165
27. Events after the financial period ...................................	165


Parent company’s Financial Statements (FAS) .....	166
Income statement ....................................................................	166
Balance sheet .............................................................................	167
Statement of cash flows .........................................................	169
Notes to the financial statements of parent company .......................................................................................	170


Signatures of the Report of the Board of Directors and Financial Statements ......................................................	181
Auditor’s Report ........................................................................	182
Assurance Report on the Sustainability Statement ...	187
Independent auditor's report on the ESEF financial statements of Koskisen Oyj ..................................................	189
Information for investors ........................................................	191

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 120

Consolidated Financial Statements (IFRS)

Consolidated statement of comprehensive income


EUR thousand	Note	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Revenue	2	354,936	282,262

Other operating income	4	2,958	2,022
Change in inventories of finished goods and work in progress	16	8,676	5,151
Change in fair value of forest assets	13	354	324
Materials and services	5	-232,886	-174,749
Employee benefit expenses	6	-54,797	-47,913
Depreciation, amortisation and impairments	8	-14,478	-11,169
Other operating expenses	9	-50,452	-42,904
Operating profit (loss)		14,310	13,023

Finance income	10	2,534	3,638
Finance costs	10	-6,101	-6,689
Finance costs, net		-3,567	-3,051

Profit (loss) before income tax		10,743	9,972

Income tax expense	11	-2,123	-1,684
Profit (loss) for the period		8,620	8,288


EUR thousand	Note	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Other comprehensive income

Items that may be reclassified to profit or loss
Translation differences		48	47
Other comprehensive income for the period, net of tax		48	47
Total comprehensive income for the period		8,668	8,335

Profit (loss) for the period attributable to:
Owners of the parent company		8,620	8,288
Profit (loss) for the period		8,620	8,288

Total comprehensive income for the period attributable to:
Owners of the parent company		8,668	8,335
Total comprehensive income		8,668	8,335

Earnings per share for profit attributable to the ordinary equity holders of the parent company:

Basic earnings per share, EUR	20	0.37	0.36
Diluted earnings per share, EUR	20	0.36	0.36

The consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 121

Consolidated balance sheet


EUR thousand	Note	31 Dec 2025	31 Dec 2024
ASSETS
Non-current assets
Property, plant and equipment	12	140,533	111,540
Forest assets	13	4,363	3,915
Right-of-use assets	14	31,608	34,043
Intangible assets	15	2,992	1,036
Financial assets at fair value through profit or loss	21	200	14
Other receivables	17	-	10
Deferred tax assets	11	35	37
Total non-current assets		179,730	150,595

Current assets
Inventories	16	62,383	49,227
Trade receivables	21	31,398	23,835
Other receivables	17	11,116	9,536
Financial assets at fair value through profit or loss	21	11,709	11,513
Income tax receivables	11	908	74
Cash and cash equivalents	21	24,441	31,823
Total current assets		141,954	126,008

Assets held for sale		383	447

TOTAL ASSETS		322,067	277,050


EUR thousand	Note	31 Dec 2025	31 Dec 2024
EQUITY AND LIABILITIES
Equity
Share capital	19	1,512	1,512
Legal reserve	19	16	16
Reserve for invested unrestricted equity	19	81,883	73,843
Treasury shares	19	-3	-3
Cumulative translation difference	19	239	192
Retained earnings		71,077	65,240
Profit (loss) for the period		8,620	8,288
Total equity attributable to owners of the parent company		163,344	149,086
Total equity		163,344	149,086

Liabilities
Non-current liabilities
Borrowings	21	42,778	24,731
Lease liabilities	14, 21	26,921	29,465
Other long-term employee benefits	6	3,220	3,117
Other payables	23	3,182	14
Deferred tax liabilities	11	9,526	7,162
Provisions	22	187	150
Total non-current liabilities		85,816	64,639

Current liabilities
Borrowings	21	5,374	8,041
Lease liabilities	14, 21	3,965	4,024
Derivative liabilities	21	-	141
Advances received	21	933	983
Trade payables	21	38,892	29,211
Trade payables, payment system	21	7,265	6,470
Other payables	23	16,405	14,300
Income tax liabilities	11	-	65
Provisions	22	74	89
Total current liabilities		72,907	63,325

Total liabilities		158,723	127,964

TOTAL EQUITY AND LIABILITIES		322,067	277,050

The consolidated balance sheet should be read in conjunction with the accompanying notes.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 122

Consolidated statement of changes in equity


		Attributable to owners of the parent company
EUR thousand	Note	Share capital	Legal reserve	Reserve for invested unrestricted equity	Treasury shares	Cumulative translation differences	Retained earnings	Total equity attributable to owners of the parent company	Total equity
Equity at 1 Jan 2025		1,512	16	73,843	-3	192	73,527	149,086	149,086

Profit (loss) for the period		-	-	-	-	-	8,620	8,620	8,620
Other comprehensive income
Cumulative translation difference		-	-	-	-	48	-	48	48
Total comprehensive income		-	-	-	-	48	8,620	8,668	8,668
Transactions with owners:
Dividend distribution		-	-	-	-	-	-2,771	-2,771	-2,771
Share-based payments		-	-	-	-	-	321	321	321
Directed share issue (business acquisition)	19	-	-	8,040	-	-	-	8,040	8,040
Total transactions with owners		-	-	8,040	-	-	-2,450	5,590	5,590
Equity at 31 Dec 2025		1,512	16	81,883	-3	239	79,697	163,344	163,344

The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 123


		Attributable to owners of the parent company
EUR thousand	Note	Share-capital	Legal reserve	Reserve for invested unrestricted equity	Treasury shares	Cumulative translation differences	Retained earnings	Total equity attributable to owners of the parent company	Total equity
Equity at 1 Jan 2024		1,512	16	73,843	-3	144	71,717	147,229	147,229

Profit (loss) for the period		-	-	-	-	-	8,288	8,288	8,288
Other comprehensive income
Cumulative translation difference		-	-	-	-	47	-	47	47
Total comprehensive income		-	-	-	-	47	8,288	8,335	8,335
Transactions with owners:
Dividend distribution		-	-	-	-	-	-7,368	-7,368	-7,368
Share-based payments		-	-	-	-	-	890	890	890
Total transactions with owners		-	-	-	-	-	-6,478	-6,478	-6,478
Equity at 31 Dec 2024		1,512	16	73,843	-3	192	73,527	149,086	149,086

The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 124

Consolidated statement of cash flows


EUR thousand	Note	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Cash flow from operating activities
Profit (loss) for the period		8,620	8,288
Adjustments:
Depreciation, amortisation and impairment	8	14,478	11,169
Change in the fair value of the forest assets	13	-354	-323
Gains and losses from sale of non-current assets		-104	23
Interest and other finance income and costs	10	3,567	3,051
Income taxes	11	2,123	1,684
Change in other long-term employee benefits		-143	-104
Share-based payments		321	890
Other adjustments		-668	-4
		19,221	16,386

Changes in net working capital:
Change in trade and other receivables	17, 21	-8,106	-184
Change in trade and other payables	21, 23	12,312	1,305
Change in inventories	16	-7,384	-11,656
Utilised provisions	22	22	53
Interest received		504	1,836
Interest paid		-4,125	-4,389
Other financial items received		293	810
Arrangement fees and other finance costs paid		-519	-150
Income taxes paid		-1,144	1,653
Net cash flow from operating activities		19,693	13,953


EUR thousand	Note	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Cash flow from investing activities
Purchases of property, plant and equipment and intangible assets	12, 15	-20,211	-20,760
Proceeds from sale of non-current assets		132	511
Acquisitions of businesses and subsidiaries		-15,009	-
Repayment of deposits		-	20,000
Net cash flow from investing activities		-35,089	-249

Cash flow from financing activities
Proceeds from borrowings	21	35,000	-
Repayment of borrowings	21	-19,914	-6,639
Repayments of lease liabilities	21	-4,318	-3,657
Dividends paid		-2,771	-7,368
Net cash flow from financing activities		7,996	-17,664

Net change in cash and cash equivalents		-7,399	-3,960

Cash and cash equivalents		31,823	35,771
Effects of exchange rate changes on cash and cash equivalents		17	12
Cash and cash equivalents at the end of the period		24,441	31,823

The consolidated statement of cash flows should be read in conjunction with the

accompanying notes.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 125

Notes to the Consolidated Financial Statements

1. General information and basis of preparation

General information of the Group

Koskisen Corporation (the company, the parent company), together with its

consolidated subsidiaries (Koskisen, the Group), is active in the sawn timber and panel

industries where it manufactures a wide range of wooden products such as sawn

goods, plywood and chipboard. Koskisen aims to be a sustainable partner with both the

forest owners as well as its customers. Koskisen was founded in 1909. Its headquarters is

located in Järvelä, Finland and it has offices in Finland and Poland. Koskisen has

approximately 1,000 employees.

Koskisen Corporation is a Finnish public limited liability company with a corporate

identity number 0148241-9, domiciled in Kärkölä, Finland. The registered address is

Tehdastie 2, 16600 Järvelä, Finland. The parent company’s / Koskisen Corporation’s

shares are listed on the main list of Nasdaq Helsinki Oy from 1 December 2022.

The Board of Directors of Koskisen Corporation has approved these consolidated

financial statements for issue on 26 March 2026. A copy of the consolidated financial

statements is available at the Internet address www.koskisen.fi/en/.

Basis of preparation

Koskisen’s consolidated financial statements have been prepared in accordance with

the IFRS accounting standards as adopted by the European Union, and the IFRS

accounting standards in force on 31 December 2025 have been complied with when

preparing them. The notes to the consolidated financial statements also comply with

the requirements under the Finnish accounting and company legislation, which

supplements the IFRS accounting standards.

The consolidated financial statements have been prepared primarily under the

historical cost convention unless otherwise indicated. Financial assets at fair value

through profit or loss, derivative liabilities and forest assets, as well as assets and

liabilities regarding benefit-based plans and share-based payments have been

measured at fair value.

The consolidated financial statements are presented in thousands of euros, which is the

functional and presentation currency of the parent company.

All amounts disclosed in the consolidated financial statements and notes have been

rounded off to the nearest thousand unless otherwise stated, therefore the sum of

individual figures may deviate from the presented total figure.

New standards and interpretations

The new accounting standards, amendments to accounting standards or

interpretations adopted on 1 January 2025 did not have a significant impact on the

Koskisen consolidated financial statements.

The Group has not adopted any new published accounting standards, amendments to

accounting standards or interpretations that are not mandatory for financial periods

ending 31 December 2025.

The IFRS 18 Presentation and Disclosure in Financial Statements accounting standard

will enter into force on 1 January 2027 and replaces the existing IAS 1 Presentation of

Financial Statements. IFRS 18 introduces changes to the structure of the income

statement and mandatory subtotals, a requirement to disclose certain management-

determined performance measures that are currently reported outside the financial

statements, and expanded consolidation and disaggregation criteria that apply to both

the main statements and the notes to the financial statements. IFRS 18 does not affect

the recognition or measurement of items in the financial statements.

Koskisen is continuing to assess the impact of the new IFRS 18 standard and expects it

to have an impact on the consolidated income statement, cash flow statement and

certain notes to the consolidated financial statements. The reclassification of income

and expenses in the consolidated income statement is estimated to have an impact on

the amount of operating profit. For example, exchange rate differences on trade

receivables and trade payables, as well as gains and losses on foreign exchange forward

contracts related to sales, currently presented in the item Finance costs - net, will in the

future be presented above operating profit.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 126

Other new accounting standards, amendments to accounting standards or

interpretations published by the balance sheet date are not expected to have a

material impact on the entity in the current or future reporting periods and on

foreseeable future transactions.

Foreign currency translation

Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured

using the currency of the primary economic environment in which the entity operates

(the functional currency). The consolidated financial statements are presented in euros,

which is the company’s functional and presentation currency.

Foreign currency transactions and balances

Foreign currency transactions are translated into the functional currency using the

exchange rates at the dates of the transactions. Foreign exchange gains and losses

resulting from the settlement of such transactions and from the translation at year-end

exchange rates of monetary assets and liabilities denominated in foreign currencies are

recognised in the consolidated statement of comprehensive income.

Foreign exchange gains and losses relating to the ordinary course of business, as well

as foreign exchange gains and losses relating to financial items are presented in

finance costs, net in the statement of comprehensive income.

Group companies

The results and financial position of foreign operations that have a functional currency

different from the presentation currency are translated into the presentation currency.

Assets and liabilities for each balance sheet presented are translated at the closing rate

at the date of that balance sheet. Income and expenses for each statement of

comprehensive income are translated at average exchange rates. All resulting

exchange differences are recognised in other comprehensive income.

On consolidation, exchange differences arising from the translation of any net investment

in foreign entities are recognised in other comprehensive income. When a foreign

operation is sold or otherwise disposed of, the associated exchange differences are

reclassified to the statement of comprehensive income, as part of the gain or loss on sale.

Fair value adjustments arising on the acquisition of a foreign operation are treated as

assets and liabilities of the foreign operation and translated at the closing rate.

Macroeconomic environment

The Group’s most significant short-term risks are related to the availability of raw

materials and the management of price changes, recently intensified risks in the

general geopolitical, security and trade policy situation, regulatory changes, the general

weakening of the market situation and its effect on market demand, the solvency of

customers and the purchasing power of consumers, the delivery capability of suppliers

and service providers, the seasonality of operations, and changes in business areas and

customer relationships.

At present, there are uncertainties particularly related to the import tariffs imposed by

the United States. Koskisen does not have significant sales in the US market, so the

direct impacts of customs and trade policy are minor. The indirect impacts of US tariff

and customs policy on trade flows in the sawmill industry, in particular, are difficult to

assess. In addition to impacts on trade flows, there may also be impacts on the supply

of, and demand for, products. The tariff and trade policy pursued by the United States

may have significant impacts on inflation, economic growth, interest rates and

exchange rates in Koskisen’s key markets.

The end of wood imports from Russia has increased the price of wood and kept the

price of birch plywood high. The Group has not had any operations in Russia during the

financial periods presented.

Changes in the macroeconomic operating environment increase the importance of

management's judgment and estimates in the consolidated financial statements.

Climate-related issues

Climate change brings risks and opportunities to Koskisen. Risks related to the physical

changes of climate change may cause disruption to the availability of raw materials. In

addition, legislative risks related to the preservation of biodiversity may cause

restrictions on the utilisation of natural resources in the form of logging restrictions.

Opportunities related to the transition to a lower-carbon society may increase demand

for wood construction and wood products. Energy self-sufficiency and energy efficiency

opportunities can be achieved through own energy production.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 127

Koskisen has made investments during the financial period that, among other things,

improve energy efficiency, reduce energy consumption, material waste and emissions

from transportation. These investments are capitalized in tangible fixed assets and

right-of-use assets, which are presented in notes 12: Property, plant and equipment and

14: Leases. Koskisen has also, among other things, reduced the share of fossil-based raw

materials during the financial period.

The risks and opportunities related to climate change are described in more detail in

Koskisen's Sustainability Statement as part of the Board of Directors' Report.

Climate change-related risks did not have a material impact on the consolidated

financial statements during the financial periods presented.

Key estimates and management judgement

The preparation of financial statements in conformity with IFRS accounting standards

requires management to use certain critical estimates and exercise judgement, which

have an impact on the amount of assets and liabilities as well as the amount of income

and expenses recognised for the financial year presented in these consolidated

financial statements. In addition, the management is required to use judgement in the

application of the accounting policies.

The estimates and judgement are continually evaluated and are based on the

management’s best knowledge, historical experience and expectations of future events

that are believed to be reasonable under the circumstances. The resulting accounting

estimates will, by definition, seldom equal the related actual results.

The estimates and assumptions that have a significant risk of causing a material

adjustment to the carrying amounts of assets and liabilities are presented in the

following notes to the consolidated financial statements:


Note	Key estimates and judgements
13. Forest assets	Valuation of forest assets
14. Leases	Embedded leases
14. Leases	Lease term determination
14. Leases	Determination of incremental borrowing rate
22. Provisions	Estimation of the amount and timing of the provision

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 128

2. Segment information and revenue

Koskisen’s chief operative decision-maker (CODM) is the Board of Directors which

monitors the results of the Group and allocates resources to the segments. Koskisen’s

operating segments, which also are the Group’s reportable segments, are the Panel

Industry and the Sawn Timber Industry. The Board of Directors monitors each

segment’s performance on the basis of revenue and EBITDA. Transactions between

operating segments are based on arm’s length terms, and they are eliminated on

consolidation.

The Panel Industry provides tailored high quality panel board solutions to our

customers. The Panel Industry revenue comprises sales of plywood, chipboard, thin

plywood and veneer as well as optimised van interior solutions.

The Sawn Timber Industry provides sawn timber and further-processed products that

are produced from high-quality wood raw material. The Sawn Timber Industry revenue

comprises sales of sawn timber and further processed timber as well as wood

procurement side products for pulp and paper industry and bioenergy for several

power plants.

Other consists of Kosava-Kiinteistöt Oy, 100% owned subsidiary providing facility

management related services to the parent company, as well as some of the Group

central functions which are not allocated to the segments.

REVENUE BY SEGMENTS


	1 Jan–31 Dec 2025			1 Jan–31 Dec 2024
EUR thousand	External	Internal	Total	External	Internal	Total
Panel Industry	150,935	12	150,946	142,433	21	142,454
Sawn Timber Industry	203,915	31,556	235,471	139,737	27,946	167,683
Segments total	354,850	31,567	386,417	282,171	27,967	310,137
Other	86	693	780	92	780	871
Elimination of internal sales		-32,261	-32,261		-28,746	-28,746
Total	354,936	-	354,936	282,262	-	282,262

Koskisen generates revenue mainly from the sale of goods, i.e. sawn timber and panel.

Majority of the Koskisen’s revenue is recognised at a point in time when customer

obtains control of the goods based on the applicable delivery terms. The payment

terms in Koskisen’s customer contracts typically vary between 30 and 60 days, and the

contracts do not include significant financing components. The contracts may include

variable payments such as cash discounts or other discounts.

In 2025 and 2024, Koskisen had no external customers from which revenue recognised

would have been over 10% of the Group’s total revenue.

REVENUE BY COUNTRIES


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Finland	132,901	111,595
Japan	33,299	23,990
Germany	24,411	24,098
Poland	20,192	15,465
Other EU countries	101,479	76,556
Other countries	42,654	30,559
Total	354,936	282,262

EBITDA BY SEGMENTS


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Panel Industry	15,688	17,681
Sawn Timber Industry	14,277	7,205
Segments total	29,965	24,886
Other	-1,177	-693
Total	28,789	24,193

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 129

RECONCILIATION OF EBITDA TO OPERATING PROFIT (LOSS)


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
EBITDA	28,789	24,193
Depreciation, amortisation and impairments	-14,478	-11,169
Operating profit (loss)	14,310	13,023

CONTRACT ASSETS AND LIABILITIES


EUR thousand	31 Dec 2025	31 Dec 2024
Contract liabilities ¹	787	838

¹ Included in Advances received in the balance sheet

Revenue was recognised for the majority of the amount included in the contract

liability balance at the beginning of the period.

NON-CURRENT ASSETS BY GEOGRAPHICAL AREA


EUR thousand	31 Dec 2025	31 Dec 2024
Finland	174,366	144,835
EU countries	5,327	5,708
Other countries	3	15
Total	179,696	150,558

ACCOUNTING POLICY

Based on contracts with customers, sales of goods are distinct performance

obligations. In addition, Koskisen applies various delivery terms based on

Incoterms 2020, which are the official rules for the interpretation of trade terms

as issued by the International Chamber of Commerce (ICC). Control of goods sold

transfers at a point in time, typically when the title for the goods or physical

possession of the goods has transferred to the customer, the customer has

accepted the goods or Koskisen has right to payment.

When control of goods has transferred to the customer, but Koskisen still has

responsibility to arrange for delivery or insurance, these services are considered

as distinct performance obligations, and if material, recognised over time, while

the service is being performed. Koskisen considers that the customer is able to

benefit from these services by simultaneously receiving and consuming the

benefits provided by such a service.

The more widely used delivery terms are Carriage and Insurance Paid to (CIP),

Carriage Paid to (CPT), Cost, Insurance and Freight paid to (CIF) or Cost and

Freight paid to (CFR): with revenue for goods recognised at the point of handing

over the goods to a carrier in accordance with relevant term; for Free of Carriage

(FCA) sale of goods is recognised at the point of handing the goods over to the

buyer’s carrier; and for Delivered at Place (DAP) at the point of delivery to

destination.

Koskisen recognises revenue from contracts with customer to the amount that it

expects to receive from the customer net of any sales taxes. Any variable

considerations, such as discounts, included in the customer contract are

estimated and included in the revenue only to the extent that it is highly

probable that no significant reversal in the amount of cumulative revenue

recognised will not occur. The amount of variable consideration is estimated at

the end of each reporting period. When a contract contains more than one

performance obligation, the consideration included in the contract is allocated to

the performance obligations based on stand-alone selling prices. Koskisen does

not have significant warranty or return obligations.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 130

Koskisen does not recognise material contract assets arising from contracts with

customers, as right to consideration typically meets the definition of trade

receivables on initial recognition. Trade receivables are recognised when the

control of the goods is transferred to the customer, and the consideration

included in the contract is unconditional except for the passage of time. In

Koskisen’s customer contracts the period between the transfer of the goods or

services to the customers and the receipt of payment is less than 12 months.

Koskisen has elected to use the practical expedient not to adjust revenue for the

effect of financing components. Any advance payments received from the

customers are recognised on the balance sheet (contract liability).

For any sales commissions paid, Koskisen applies a practical expedient

mentioned by IFRS 15, and recognises the cost as an expense when incurred as

the amortisation period of the related assets would have been one year or less.

3. Financial risk and capital management

Financial risks are divided into credit risk covering business-related credit risk and

financial credit risk, liquidity risk and market risk covering foreign exchange risk and

interest rate risk. These financial risks are managed by the Koskisen Group Finance

department in accordance with the Koskisen Treasury Policy. Koskisen Treasury Policy

is approved by the Board of Directors of Koskisen Corporation.

The objective for treasury activities is to guarantee sufficient funding at all times and to

identify, evaluate and manage financial risks.

Credit risk

Credit risk arises from cash and cash equivalents, deposits, investments measured at

fair value through profit or loss (FVPL), favourable derivative financial instruments as

well as trade receivables. The Group’s credit risks or counterparty risks are realised

when the customer or other counterparty is unable to fulfil its commitments to

the Group.

Regarding trade receivables, Koskisen applies the expected credit loss model to assess

impairment loss for the doubtful trade receivables since the trade receivables do not

contain a significant financing component. To measure the lifetime expected credit

losses, trade receivables have been grouped based on aging category and measured

based on historical loss rates adjusted by forward looking estimates and individual

assessment. Trade receivables is written off as impaired when receivership or

bankruptcy is confirmed or when it is otherwise obvious that the customer will be

unable to meet its payment obligations. Changes in impairment loss for doubtful trade

receivables are recognised under other operating costs in the statement of

comprehensive income. According to the principles of credit management, the quality

of receivables is assessed on the basis of customer-specific analysis. Credit risks related

to customers are managed by credit insurance, advance payment terms and/or by

expecting bank guarantees or confirmed letters of credit for customer payments.

Koskisen is also exposed to counterparty risks related to financial institutions, through

the significant amounts of liquid funds deposited with financial institutions, in the form

of financial investments and in derivatives. Financial investments are made only with

counterparties with high creditworthiness. While cash and cash equivalents and

deposits are also subject to the impairment requirements of IFRS 9, the identified

impairment loss was immaterial.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 131

LOSS ALLOWANCE


EUR thousand	Not due	Under 30 days	30–60 days	61–90 days	Over 90 days	Total
31 Dec 2025
Expected loss rate	0.1%	0.1%	0.5%	3.3%	-%
Trade receivables, gross	26,089	5,074	188	71	1	31,424
Loss allowance	-19	-4	-1	-2	-	-26
Trade receivables, net	26,070	5,071	187	69	1	31,398


EUR thousand	Not due	Under 30 days	30–60 days	61–90 days	Over 90 days	Total
31 Dec 2024
Expected loss rate	-%	-%	0.3%	3.3%	6.8%
Trade receivables, gross	18,821	4,648	120	11	264	23,863
Loss allowance	-8	-2	-0	-0	-18	-28
Trade receivables, net	18,813	4,646	119	10	246	23,835

LOSS ALLOWANCE RECONCILIATION


EUR thousand	2025	2024
Opening loss allowance at 1 Jan	28	99
Increase in loss allowance recognised in the statement of comprehensive income during the financial year	26	28
Receivables written off during the financial year as uncollectible	-	-
Unused amount reversed	-28	-99
Closing loss allowance at 31 Dec	26	28

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 132

Liquidity risk

Cash flow from operations is the principal source of Koskisen’s financing. External

funding, as well as cash and financial investments, are managed centrally by Koskisen

Group Finance according to the Koskisen Treasury Policy. Financial investments are

made mainly in short-term instruments to ensure continuous liquidity.

Koskisen ensures sufficient liquidity at all times by efficient cash management and by

maintaining sufficient available committed and uncommitted credit lines that are

available until 2030. Refinancing risk is managed by having a sufficiently long

loan portfolio.

The Group’s current credit facility agreements include committed revolving credit

facilities totalling EUR 15.0 million as at 31 December 2025 (31 December 2024: EUR 8.0

million).

At the end of 2025, the funding of Koskisen was guaranteed by existing committed

credit facilities, cash and financial investments. The Group had cash and cash

equivalents totalling EUR 24.4 million as at 31 December 2025 (31 December 2024:

EUR 31.8 million).

The committed revolving credit facilities and long-term loans include financial

covenants, which are described below in the capital management section.

MATURITIES OF FINANCIAL LIABILITIES


EUR thousand	2026	2027	2028	2029	2030	2031–	Total contractual cash flows	Carrying amount
31 Dec 2025
Loans from financial institutions	7,165	8,057	8,895	7,967	17,364	5,526	54,976	48,152
Lease liabilities	6,048	4,483	4,328	3,839	3,170	19,961	41,830	30,886
Trade payables	38,892	-	-	-	-	-	38,892	38,892
Trade payables, payment system¹	7,302	-	-	-	-	-	7,302	7,265
Total	59,407	12,540	13,224	11,807	20,534	25,487	142,999	125,196


EUR thousand	2025	2026	2027	2028	2029	2030–	Total contractual cash flows	Carrying amount
31 Dec 2024
Loans from financial institutions	9,521	12,334	5,670	3,426	2,633	2,815	36,399	32,772
Lease liabilities	6,347	4,763	4,494	4,369	3,840	23,389	47,202	33,489
Derivative liabilities	141	-	-	-	-	-	141	141
Trade payables	29,211	-	-	-	-	-	29,211	29,211
Trade payables, payment system¹	6,639	-	-	-	-	-	6,639	6,470
Total	51,859	17,097	10,164	7,795	6,473	26,204	119,592	102,084

¹ Trade payables under the payment system are payable on demand, so the company reports them as short-term debt. Accumulated interest and interest for the 45 days notice period have been added to the

contractual cash flows of these.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 133

Market risk

Commodity price risk

Prices of panel board and sawn wood products as well as timber used as raw material

fluctuates based on international market conditions, exposing Koskisen revenue and

profitability to negative fluctuations.

Koskisen hedges against electricity price risk fluctuations by making price fixings. For the

purchases 1–12 months forward, the range of the price fixing is 65–90%, for the following

13–24 months, the range of the price fixing is 35–75%, for the following 25–36 months, the

range of the price fixing is 10–50%, and for the following 37–48 months, the range of the

price fixing is 0–25%. Koskisen’s principle is to keep the degree of hedging within these

ranges. The Group’s aim is to ensure that a sufficiently large proportion of the purchases is

protected from fluctuations in the market price. The significant volatility of the electricity

prices is an additional risk for production costs and its importance for market competition

depends on the realisation of the risk in relation to competitors.

Foreign exchange risk

Koskisen’s headquarters is in Finland and Koskisen also has a foreign subsidiary in

Poland. The Group is exposed to both transaction and translation foreign exchange

risks. The Group’s business and results from operations are exposed to changes in

exchange rates between the euro, the presentation currency, and other currencies. The

largest export currency after the euro is the U.S. dollar (USD), which is used for example

as the currency for exports to Japan. The magnitude of foreign exchange exposures

changes over time as a function of revenue and costs in different markets, as well as the

prevalent currencies used for transactions in those markets. Significant changes in

exchange rates may also impact Koskisen’s competitive position and related price

pressures through their impact on our competitors.

The majority of Koskisen’s revenue and results are in the Group companies’ functional

currencies, hence Koskisen’s exposure to risks, other than risks arising from USD, is

limited. Additionally, Koskisen is exposed to risks related to liquidity and payment

discipline of its customers, which may impact cash flow or lead to credit losses.

As shown in the table below, Koskisen is primarily exposed to changes in the EUR/USD

exchange rate. The sensitivity of profit or loss to changes in the exchange rates arises

mainly from revenue in USD, outstanding trade receivables in USD, and a bank account

in USD. Koskisen’s exposure to other foreign exchange movements is not material.

To mitigate the impact of changes in exchange rates on Koskisen’s results, Koskisen

hedges the foreign exchange exposure by entering into foreign exchange forward

contracts. Koskisen’s policy is to fix 100% of the USD denominated sales within the

current quarter, 50-80% in the next quarter and 25-60% of the third quarter. The

nominal amount of the outstanding USD foreign exchange forward contracts was EUR

6,995 thousand on 31 December 2025 (31 December 2024: EUR 3,619 thousand). The

Group’s open USD position as well as the derivatives and the sensitivity analysis of the

position are presented in the tables below.


	USD exposure
EUR thousand	31 Dec 2025	31 Dec 2024
Trade receivables	1,375	1,397
Cash and cash equivalents	3,561	1,673
Trade payables	5	48
Foreign currency forwards (nominal value)	6,995	3,619
Foreign currency forwards (fair value)	17	-141


	Impact on post-tax profit
EUR thousand	2025	2024
EUR strengthens against US dollar 10%	-3,044	-1,834
EUR weakens against US dollar 10%	3,044	1,834

As Koskisen has entities where the functional currency is other than the euro, the

shareholders’ equity is exposed to fluctuations in foreign exchange rates. Changes in

shareholders’ equity caused by movements in foreign exchange rates are shown as

currency translation differences in the consolidated financial statements. The Group

does not hedge this risk.

Interest rate risk

Koskisen borrows money from financial institutions and the interest rates of these loans

are based on floating markets rates, which exposes Koskisen to an increase in its

financing costs (cash flow interest rate risk).

Koskisen hedges its exposure to changes in interest rates with interest rate swaps.

These hedges cover 52% (2024: 92%) of the open balance of variable rate loans from the

change of the market rates. Their nominal amount is EUR 25.0 million as at 31

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 134

December 2025 (31 December 2024: EUR 30.0 million). The interest rate swap

agreements are valid until 2028, and accordingly effectively fix interest rates partly to

predetermined level.

The following sensitivity analysis covers both variable rate loans and the interest rate

swap contracts.


	Impact on post-tax profit
EUR thousand	2025	2024
Interest rates – increase by one percentage points¹	-336	-337
Interest rates – decrease by one percentage points¹	336	337

¹ Holding all other variables constant

Capital management

Koskisen aims to manage its capital in a way that supports the profitable growth of

operations, and ensures an adequate liquidity and capitalisation of the Group at all times.

The target is to maintain a capital structure that contributes to the creation of shareholder

value. Management monitors the capital structure with leverage (Net Debt to EBITDA).

The assets employed in Koskisen’s business consist principally of net working capital,

fixed assets, and financial investments which are funded by equity and net debt.

Koskisen aims to maintain low net working capital to ensure a healthy cash flow even

when the business is growing and to maintain a high return on assets employed.

Koskisen has not defined a specific quantitative target for its capital management or

capital structure, but the aim is to ensure strong credit quality to provide for ample

access to external funding sources and to support the growth ambitions of the

business. Koskisen considers its current capital structure to be a strength, as it allows

for capturing potential value creating business opportunities, should such

opportunities arise.

The Board of Directors of the company has adopted a dividend policy pursuant to

which Koskisen aims to pay an attractive dividend in accordance with its strategy,

investment requirements, financial position and market outlook. Koskisen aims to pay a

dividend equal to no less than one third of its net profit annually.

The key terms of the loan in the Koskisen financing agreement agreed during the

financial year, are:

• Interest 6 months Euribor

• Margin, the level of which depends on leverage

• Semi-annual repayments

• Covenants: leverage, equity ratio

• Termination date of the loan agreement 21 October 2030.

The loan was initially recognised at fair value, net of transaction costs incurred.

The key terms of the fixed term-loan related to investments to increase capacity are:

• Interest 6 months Euribor

• Margin, the level of which depends on leverage

• Semi-annual repayments

• Covenants: leverage, equity ratio

• Termination date of the loan agreement 13 December 2032.

The loan in the Koskisen financing agreement and the fixed term-loan related to

investments to increase capacity include covenant conditions regarding the company’s

leverage and equity ratio. The covenants are calculated from the Group figures and are

reported to the financiers four times a year.

The table lists the covenants of the loans. The covenants were met throughout the

financial period and are expected to be met during the next financial period.


	31 Dec 2025		31 Dec 2024
	Actual	Threshold	Actual	Threshold
Leverage	1.50	3.50	0.90	3.50
Equity ratio	50.9%	30.0%	54.0%	30.0%

The key terms of the new sawmill financing package loans are:

• Interest 6 months Euribor

• Fixed margin

• Semi-annual repayments

• No covenants

• The loans mature between the years 2029–2031.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 135

4. Other operating income


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Sale of emission allowances	1,569	1,294
Negative goodwill recognition	662	-
Firewood sales to forest owners	190	237
Gains on disposal of property, plant and equipment	125	53
Lease income	122	110
Compensations received	51	35
Grants received	48	184
Other	192	109
Total	2,958	2,022

Koskisen participates in the European Union emission trading scheme, in which it has

received free emission allowances for a defined period. Koskisen was granted 16,564

units of CO2 emission rights for the year 2025 (2024: 20,416 units). The rights in excess of

the Group’s needs have been transferred to the following financial period. In 2025,

Koskisen returned emission rights totalling 1,749 units (2024: 2,277 units).

Koskisen’s CO2 credits as at 31 December 2025 amounted to 17,251 units (31 December

2024: 23,436 units) and their market value was approximately EUR 1,507 thousand (31

December 2024: EUR 1,687 thousand). Koskisen sold emission rights in 2025 amounting

to EUR 1,569 thousand (2024: EUR 1,294 thousand). No rights have been purchased

(2024: no purchases).

ACCOUNTING POLICY

Emission rights

Koskisen participates in the European Union’s Emissions Trading Scheme aimed

at reducing greenhouse gas emission and receives allowances, free of charge, for

a defined period to emit a fixed tonnage carbon dioxide. Allowances received are

initially and subsequently measured at cost (nominal amount). The related

liability is measured at the carrying amount of the allowances. Any emissions

exceeding the allowances received is measured at the market value of the excess

emissions. Gains arising from the sale of the emission right allowances are

recorded in other operating income in the statement of comprehensive income.

Government grants

Government grants are recognised when there is reasonable assurance that the

conditions underlying the grants have been met and that the grant will be

received. Government grants to cover expenses incurred are recognised in the

statement of comprehensive income proportionally over the periods during

which the related expenses are recognised. Government grants related to the

acquisition of tangible assets are deducted from the acquisition price of the

asset and the net acquisition cost is capitalized in the balance sheet.

Government grants received, for which the expenses have not yet been

recognised, are recognised as an advance received in the consolidated balance

sheet. The grant component for eligible expenses already incurred during the

reporting period, for which the grant will be received in subsequent reporting

periods, is recognised as grant income in the statement of comprehensive

income and as other receivable in the consolidated balance sheet.

5. Materials and services

Materials and services comprise purchases of materials and supplies such as logs,

coatings, glues, energy for production and other production materials. External services

comprise log harvesting, transportation and machinery repair services.


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Purchases of materials and supplies	193,714	141,322
Change in inventories	-4,451	-6,505
External services	43,624	39,932
Total	232,886	174,749

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 136

6. Employee benefit expenses

Koskisen employed an average of 994 employees in 2025, of which 845 employees were

located in Finland and 133 in Poland. In addition, there were some 16 employees working

in sales in different countries around the world. Koskisen’s employee benefit expenses

are presented in the table below. The remuneration of the members of the Executive

Board, the CEO and the members of the Board of Directors is presented in note 25:

Related party transactions. More detailed information on the share-based payments is

presented in note 7: Share-based incentive plans.


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Wages and salaries	44,174	38,809
Pension costs – defined contribution plans	7,663	6,652
Social security costs	1,981	1,369
Share-based payments	815	904
Other long-term benefits – service allowance	163	179
Total	54,797	47,913

Other long-term benefits consist of an annual service allowance plan. The cost of the

plan is determined based on the advice of qualified actuary who carries out a full

valuation of the plan on a regular basis using the projected unit credit method. Under

this method, the costs of the plan are charged to the statement of comprehensive

income to spread the regular costs over the working lives of the employees. Koskisen

presents the service cost relating to defined benefit obligations in employee benefit

expenses while the net interest is presented in finance costs.

AVERAGE NUMBER OF EMPLOYEES


	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Salaried employees	271	249
Workers	722	671
Average number of employees during the period	994	919

ACCOUNTING POLICY

Short-term employee benefits are recognised as expenses during the period in

which related service is provided. A liability is recognised when the Group has a

statutory and constructive obligation relating to employment relationship based

on performance received and when an obligation can be measured reliably.

Koskisen has only defined contribution pension plans in the jurisdictions it

operates. The Group pays contributions to external insurance companies and it

does not have a legal or constructive obligation to make additional payments in

case the recipient for pension contributions is unable to pay the pension benefits.

The contributions are recognised as employee benefit expense in the statement

of comprehensive income during the period to which the charge relates to.

Annual service allowance

Koskisen pays an annual service allowance to its production workers based on the

collective agreements. The plan is accounted for as a long-term employee benefit

plan according to IAS 19 Employee benefits, with items resulting from

remeasurement, which include actuarial gains and losses, are recognised

immediately in the consolidated balance sheet for the period through the

statement of comprehensive income (profit and loss) when they incur.

Expenditures based on previous work performance are recorded as expenses

either when the amendment or curtailment of the arrangement takes place, or

when the restructuring expenses related to the arrangement or the benefits

related to the termination of the employment relationship are recorded,

whichever comes first. Net interest is calculated by applying the discount rate to

the net liability or asset under the defined benefit plan. The Group recognises the

changes in the net liability for the service cost in employee benefit expenses and

net interest expense or income in finance costs, net.

The annual service allowance obligations and the related service costs have been

calculated using the projected credit unit method by discounting the estimated

future cash flows with the discount rate based on AA euro corporate bond yield

curve which reflects the duration of the liability.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 137

7. Share-based incentive plans

Share-based incentive plan 2022–2026

In March 2022, the Board of Directors of Koskisen Corporation decided on a share-

based incentive programme in place for its key employees for the years 2022 to 2026.

The incentive programme consists of three three-year earning periods, which are from

2022 to 2024, from 2023 to 2025 and from 2024 to 2026.

Share-based incentive plan 2022–2026 – Performance period 2022–2024

The key employees eligible for the programme, the incentives to be paid, the vesting

conditions and targets determined by the company’s Board of Directors were

communicated to the persons participating in the arrangement in June 2022. The key

employees eligible for the programme (six individuals) can receive a maximum of

138,000 company shares (gross amount) if the terms of the programme are met. During

2024, Koskisen Corporation included a new participant in the plan, raising the number

of eligible employees to seven (7), and the maximum number of company shares that

can be received to 156 000 (gross amount). The vesting conditions and the targets

relate to meeting certain key figures (EBITDA and return on invested capital) and work

obligation. The earned shares are given to the key employees after the vesting period

ends. From the total number of shares, Koskisen withholds the withholding tax

corresponding to the income tax liability of the key employee and pays it to the tax

authorities. The arrangement has a net settlement feature of tax obligations and is

classified as an equity-settled share-based transaction in its entirety. The arrangement

is treated as an equity-settled share-based transaction. The 2022-2024 earning period

vested and the reward shares were paid out in April 2025.

Share-based incentive plan 2022–2026 – Performance period 2023–2025

In April 2023, the company’s Board of Directors resolved on the criteria and targets as

well as the key employees eligible for the incentive programme for the second earning

period. The members of the Group Executive Board, a total of seven people, are

currently entitled to participate in the long-term share-based incentive programme.

The potential receipt and amount of the reward is based on the accumulated adjusted

EBITDA from 1 January 2023 to 31 December 2025 and the person’s continued

employment with the company. During the second earning period of the incentive

programme, the key employees eligible for the incentive programme may earn a

maximum of 215,000 shares (gross amount). The earned shares are given to the key

employees after the vesting period ends. From the total number of shares, Koskisen

withholds the withholding tax corresponding to the income tax liability of the key

employee and pays it to the tax authorities. The arrangement has a net settlement

feature of tax obligations and is classified as an equity-settled share-based transaction

in its entirety. The arrangement is treated as an equity-settled share-based transaction.

Share-based incentive plan 2022–2026 – Performance period 2024–2026

In May 2024, the company’s Board of Directors resolved on the criteria and targets as

well as the key employees eligible for the incentive programme for the third earning

period. The members of the Group Executive Board, a total of eight people, are

currently entitled to participate in the long-term share-based incentive programme.

The company’s Board of Directors decided in June 2024 to add new participants to the

2024–2026 earning period, after which the maximum number of participants will be 25.

The potential receipt and amount of the reward is based, in alignment with the growth

strategy, on increase in net sales and the accumulated adjusted EBITDA from 1 January

2024 to 31 December 2026, and the person’s continued employment with the company.

During the third earning period of the incentive programme, the key employees

eligible for the incentive programme may earn a maximum of 331,000 company shares

(gross amount). The earned shares are given to the key employees after the vesting

period. From the total number of shares, Koskisen withholds the withholding tax

corresponding to the income tax liability of the key employee and pays it to the tax

authorities. The arrangement has a net settlement feature of tax obligations and is

classified as an equity-settled share-based transaction in its entirety. The arrangement

is treated as an equity-settled share-based transaction.

Share-based incentive plan 2025–2029

In April 2025, the Board of Directors of Koskisen Corporation decided on a share-based

incentive programme in place for its key employees for the years 2025 to 2029. The

incentive programme consists of three three year earning periods, which are from 2025

to 2027, from 2026 to 2028 and from 2027 to 2029.

Share-based incentive plan 2025–2029 – Performance Period 2025–2027

In April 2025, Board of Directors of Koskisen Plc decided on the commencement of the

first performance period in the Performance Share Plan 2025-2027. Currently, a total of

approximately 30 key employees are eligible to participate in the earning period

2025-2027 of the share-based incentive programme, including the Group's CEO and

members of the Executive Board. The participants can receive a maximum of 420,000

company shares (gross amount) if the terms of the programme are met. In the share

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 138

based incentive programme, the potential receipt and amount of the reward is based

on the growth of revenue in accordance with Koskisen's growth strategy, cumulative

adjusted EBITDA and the reduction of emissions caused by the company’s own

operations (Scope 1 and 2) between 1 January 2025 and 31 December 2027, as well as

the person's ongoing employment. The earned shares are given to the key employees

after the vesting period ends. From the total number of shares, Koskisen withholds the

withholding tax corresponding to the income tax liability of the key employee and pays

it to the tax authorities. The arrangement has a net settlement feature of tax

obligations and is classified as an equity-settled share-based transaction in its entirety.

The arrangement is treated as an equity-settled share-based transaction.


	Share-based incentive plan 2022–2026			Share-based incentive plan 2025-2029	Total
	Performance period 2022–2024¹	Performance period 2023–2025	Performance period 2024–2026	Performance period 2025-2027	Total / Weighted average
Maximum amount, pcs ²	156,000	215,000	331,000	420,000	1,122,000
Initial allocation date	1 Jul 2022	30 Apr 2023	27 May 2024	2 May 2025
Estimated vesting date	30 Apr 2025	30 Apr 2026	30 Apr 2027	30 Apr 2028

Maximum contractual life, years	2.8	3.0	2.9	3.0	2.9
Remaining contractual life, years	-	0.3	1.3	2.3	1.0
Number of persons at the end of reporting year	-	7	22	29
Payment method	Equity and cash (net settlement)	Equity and cash (net settlement)	Equity and cash (net settlement)	Equity and cash (net settlement)

¹ Maximum amounts of the Share-based incentive plan 2022–2026 Performance Period 2022–2024 are adjusted by the share split carried out in November 2022.

² The amounts are presented in gross terms, i.e. the share reward figures include both the reward paid in share and a number of shares corresponding to the amount of the reward paid in cash.


	Share-based incentive plan 2022–2026			Share-based incentive plan 2025-2029
Changes during the period	Performance period 2022–2024 ¹	Performance period 2023–2025	Performance period 2024–2026	Performance period 2025-2027	Total
1 Jan 2025
Outstanding in the beginning of the period	152,000	215,000	325,125	-	692,125

Changes during period
Granted during period	-	-	-	396,000	396,000
Forfeited during period	-	-	6,000	-	6,000
Exercised during period	152,000	-	-	-	152,000

31 Dec 2025
Granted shares to which the right has not yet arisen	-	215,000	319,125	396,000	930,125

¹ Granted amounts of the Share-based incentive 2022–2026 Performance Period 2022–2024 are adjusted by the share split carried out in November 2022.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 139

Fair value determination

The fair value of share-based incentives have been determined at grant date and the

fair value is expensed until vesting. The pricing of the share-based incentives granted

during the period was determined by the following inputs and had the following effect:

VALUATION PARAMETERS FOR INSTRUMENTS GRANTED DURING THE

PERIOD


	Share-based incentive plan 2025–2029
Instrument	Performance period 2025–2027
Estimated market price of the share at the time of issuance, EUR	7.14
Maturity, years	3.0
Risk-free rate, %	-%
Expected dividends, EUR	0.12
The fair value of the benefit per share at the time of grant, EUR	6.79
Share price at reporting period end, EUR	9.10

EFFECT ON THE RESULT AND FINANCIAL POSITION


EUR thousand	1 Jan–31 Dec 2025
Expenses for the financial year, share-based payments	815
Expenses for the financial year, share-based payments, equity-settled	815
Liabilities arising from share-based payments 31 Dec 2025	-
Estimated amount to be transferred to the tax authority to settle the employee’s tax obligation within the ongoing share-based incentive plans, 31 Dec 2025	1,342

ACCOUNTING POLICY

The Group’s share-based incentive plans are classified as equity-settled or cash-

settled share-based transactions. Transactions with the net settlement feature

for tax obligations are classified in their entirety as equity-settled share-based

transactions. Equity-settled share-based transactions are measured at the grant

date fair value. The liabilities for the cash-settled share-based transactions are

measured at the fair value on each reporting date. At the end of each reporting

period, the company’s management evaluates the probability of the fulfilment of

the plan conditions (conditions based on the performance of the service and

results), updates the estimate of the number of shares expected to finally vest

and makes a corresponding adjustment on the expense recognised. Payments

for share-based plans are expensed on a straight-line basis over the vesting

period when the obligation has incurred. The expense is presented in the

employee benefit expenses. For the equity-settled plans, a corresponding

amount is recognised as an increase in retained earnings, and for the cash-

settled plans, a corresponding liability is recognised in other liabilities on the

balance sheet.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 140

8. Depreciation, amortisation and impairment


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Property, plant and equipment, depreciation
Buildings and structures	2,519	2,157
Machinery and equipment	6,197	4,247
Other property, plant and equipment	762	415
Total	9,479	6,818

Right-of-use assets, depreciation
Power plants	1,710	1,659
Machinery and equipment	2,264	1,760
Buildings	392	310
Land and water areas	48	45
Total	4,413	3,773

Intangible assets, depreciation
Customer relationships and Trademarks	225	-
Software	361	346
Total	586	346

Impairment
Assets held for sale	-	232
Total	-	232

Depreciation, amortisation and impairment total	14,478	11,169

ACCOUNTING POLICY

Depreciation and amortisation is recognised in the statement of comprehensive

income on a straight-line basis over the estimated useful lives of property, plant

and equipment and intangible assets. Right-of-use assets are depreciated over

the shorter of the asset’s useful life and the lease term. If Koskisen is reasonably

certain on exercising a purchase option, the right-of-use asset is depreciated

over its useful life.

9. Other operating expenses

Other operating expenses comprise, for example, costs related to sales freight,

forwarding and chipping, expenses for property maintenance and IT expenses.


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Sales freight and forwarding	29,092	24,127
IT expenses	4,743	4,169
Maintenance of property	4,119	3,793
Consulting and administrative services	2,543	1,963
Administrative expenses	2,371	1,794
Personnel related expenses	1,909	1,722
Sales commissions	1,179	664
Travel expenses	1,152	1,067
Lease expenses	849	885
Marketing expenses	793	603
Research and development expenses	136	301
Other expenses¹	1,566	1,816
Total	50,452	42,904

¹ Other expenses include, for example, expenses related to machines, equipment and vehicles.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 141

Fees paid to the auditor of the Group performing the statutory audit for the years

presented in the consolidated financial statements appointed by the annual general

meeting are presented in the table below.

AUDITOR REMUNERATION


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Audit	200	150
Other assignments referred to in section 1.1,2 § of the Auditing Act	98	27
Other services	19	30
Total	317	207

Auditor remuneration includes the fees paid to the auditors of each Group company.

ACCOUNTING POLICY

Research costs are expensed as incurred in the other operating expenses in the

statement of comprehensive income. Development costs are expensed as

incurred unless they meet the criteria for internally developed intangible assets,

in which case they are capitalised as intangible assets and amortised over their

expected useful life. Development costs previously recognised as an expense are

not recognised as an asset in a subsequent period.

10. Finance income and costs


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Finance income
Gains on foreign currency derivatives	816	89
Foreign exchange gains	637	754
Gains on capital redemption contracts	456	611
Interest income	433	1,414
Gains on interest rate derivatives	191	769
Other finance income	1	1
Total	2,534	3,638

Finance costs
Interest expenses from lease liabilities	-2,318	-2,209
Interest expenses from borrowings	-1,947	-2,617
Foreign exchange losses	-1,426	-593
Losses on interest rate derivatives	-153	-615
Losses on foreign currency derivatives	-14	-450
Other finance costs	-242	-206
Total	-6,101	-6,689

Finance income and costs total	-3,567	-3,051

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 142

11. Income tax

Income tax expense comprises current income tax based on the taxable income for the

period and deferred tax expense.

INCOME TAX EXPENSE


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Current tax on result for the period	-257	-203
Adjustments for current tax of prior periods	11	35
Total current income tax expense	-246	-168

Change in deferred tax assets	-581	1,447
Change in deferred tax liabilities	-1,297	-2,964
Total deferred tax expense	-1,877	-1,517

Income tax expense	-2,123	-1,684

The difference between income taxes at the statutory tax rate in Finland (20%) and

income taxes recognised in the statement of comprehensive income is reconciled

as follows:

RECONCILIATION OF THE EFFECTIVE TAX RATE


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Profit (loss) before taxes	10,743	9,972
Tax calculated at Finnish tax rate 20 %	-2,149	-1,994
Effect of foreign tax rates	11	5
Effect of expenses not deductible for tax purposes	-54	-407
Utilisation of non-deductible net interest expenses from previous reporting periods	55	511
Effect of non-taxable income	2	165
Adjustment in respect to prior years	11	35
Income tax expense	-2,123	-1,684

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 143

DEFERRED TAX ASSETS AND LIABILITIES


EUR thousand	At 1 Jan	Recognised in profit or loss	Acquisitions of businesses	Translation differences	At 31 Dec
2025
Deferred tax assets
Leases	6,698	-556	34	2	6,177
Other long-term employee benefits	623	-8	29		644
Intangible assets	37	-25			12
Provisions	48	4			52
Credit loss provision	6	-		0	5
Other items	71	6		1	78
Total	7,484	-581	63	3	6,969
Netting of deferred taxes	-7,447				-6,934
Total	37				35

Deferred tax liabilities
Accumulated depreciation differences	7,057	1,500			8,557
Rental contracts	5,957	-397	34	2	5,595
Borrowings	857	-82			775
Tangible assets	403	219	518		1,141
Derivatives	303	64			367
Other items	33	-7			25
Total	14,609	1,297	552	2	16,460
Netting of deferred taxes	-7,447				-6,934
Total	7,162				9,526

Deferred tax liabilities, net	7,126				9,491

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 144


EUR thousand	At 1 Jan	Recognised in profit or loss	Translation differences	At 31 Dec
2024
Deferred tax assets
Leases	5,198	1,500	0	6,698
Other long-term employee benefits	625	-1		623
Intangible assets	66	-29		37
Provisions	37	11		48
Credit loss provision	20	-14	0	6
Other items	90	-19	1	71
Total	6,035	1,447	1	7,484
Netting of deferred taxes	-5,947			-7,447
Total	88			37

Deferred tax liabilities
Accumulated depreciation differences	5,827	1,230		7,057
Rental contracts	4,318	1,638		5,957
Borrowings	833	24		857
Tangible assets	338	65		403
Intangible assets	-			-
Derivatives	314	-12		303
Other items	14	19		33
Total	11,645	2,964	-	14,609
Netting of deferred taxes	-5,947			-7,447
Total	5,697			7,162

Deferred tax liabilities, net	5,610			7,126

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 145

ACCOUNTING POLICY

Income tax

The income tax expense or credit for the period is the tax payable on the current

period’s taxable income, based on the applicable income tax rate for each

jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable

to temporary differences and to unused tax losses. Tax is recognised in the

statement of comprehensive income, except to the extent that it relates to items

recognised in other comprehensive income or directly in equity. In this case, the

tax is also recognised in other comprehensive income or directly in equity,

respectively.

The current income tax charge is calculated on the basis of the tax laws enacted

or substantively enacted at the end of the reporting period. Management

periodically evaluates positions taken in tax returns with respect to situations in

which applicable tax regulation is subject to interpretation and considers

whether it is probable that a taxation authority will accept an uncertain tax

treatment. The Group measures its tax balances either based on the most likely

amount or the expected value, depending on which method provides a better

prediction of the resolution of the uncertainty.

Current tax assets and tax liabilities are offset where the entity has a legally

enforceable right to offset and intends either to settle on a net basis, or to realise

the asset and settle the liability simultaneously.

Deferred tax

Deferred income tax is recognised on temporary differences arising between the

tax bases of assets and liabilities and their carrying amounts in the consolidated

financial statements. Deferred income tax is determined using tax rates (and

laws) that have been enacted or substantively enacted by the end of the

reporting period and are expected to apply when the related deferred income

tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised only if it is probable that future taxable

amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset where there is a legally enforceable

right to offset current tax assets and liabilities and where the deferred tax

balances relate to the same taxation authority on either the same taxable entity

or different taxable entities where there is an intention to settle the balances on

a net basis.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 146

12. Property, plant and equipment


EUR thousand	Land	Buildings and structures	Machinery and equipment	Other tangible assets	Advance payments and construction in progress	Total
Cost at 1 Jan 2025	2,727	83,766	113,342	6,825	15,576	222,235
Translation differences	1	27	15	2	2	48
Additions	-	2,178	4,493	1,223	12,241	20,134
Acquisitions of businesses and subsidiaries	393	5,182	11,857	776	56	18,264
Disposals	-7	-18	-108	-	-	-133
Reclassifications	-	2,129	6,330	6,215	-14,674	-
Reclassification from assets held for sale	-	-	150	-	-	150
Cost at 31 Dec 2025	3,115	93,264	136,079	15,040	13,200	260,698

Accumulated depreciation and impairment at 1 Jan 2025	-	-41,174	-65,479	-4,042	-	-110,695
Translation differences	-	-7	-5	-1	-	-13
Depreciation	-	-2,519	-6,197	-762	-	-9,479
Accumulated depreciation of disposals and reclassifications	-	-	107	-	-	107
Reclassification from assets held for sale	-	-	-86	-		-86
Accumulated depreciation and impairment at 31 Dec 2025	-	-43,701	-71,659	-4,805	-	-120,165

Carrying value at 1 Jan 2025	2,727	42,591	47,863	2,783	15,576	111,540
Carrying value at 31 Dec 2025	3,115	49,563	64,420	10,235	13,200	140,533

Other tangible assets comprise amongst others stormwater systems and a district

heating network as well as, amongst others, constructions of roads, parking and

warehouse areas and an art collection.

Additions to property, plant and equipment during the financial period 2025 amounted

to EUR 20.1 (22.2) million. These were associated with, among others, the new log yard,

the sawmill’s new channel dryers and the briquette plant. In addition, the increases

include investments related to the Panel Industry’s investment programme.

Acquisitions of businesses and subsidiaries include EUR 18.3 million in assets

transferred from Iisveden Metsä Oy in the business acquisition. See Note 24: Group

structure for further information on the business acquisition.

During the financial year, EUR 0.3 (0.4) million in financial expenses were capitalised

regarding loans for the new sawmill. The capitalisation rate was on average 5.0 percent.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 147


EUR thousand	Land	Buildings and structures	Machinery and equipment	Other tangible assets	Advance payments and construction in progress	Total
Cost at 1 Jan 2024	2,714	82,158	102,648	7,446	18,004	212,970
Translation differences	2	31	15	1	2	51
Additions	12	1,870	6,283	24	13,981	22,169
Disposals	-	-1,121	-7,468	-677	-140	-9,406
Reclassifications	-	828	15,399	31	-16,272	-13
Reclassification to assets held for sale	-	-	-3,536	-	-	-3,536
Cost at 31 Dec 2024	2,727	83,766	113,342	6,825	15,576	222,235

Accumulated depreciation and impairment at 1 Jan 2024	-	-40,130	-71,096	-4,235	-	-115,462
Translation differences	-	-7	-4	-1	-	-12
Depreciation	-	-2,157	-4,247	-415	-	-6,818
Accumulated depreciation of disposals and reclassifications	-	1,120	7,062	609	-	8,790
Reclassification to assets held for sale	-	-	2,807	-		2,807
Accumulated depreciation and impairment at 31 Dec2024	-	-41,174	-65,479	-4,042	-	-110,695

Carrying value at 1 Jan 2024	2,714	42,028	31,551	3,211	18,004	97,508
Carrying value at 31 Dec 2024	2,727	42,591	47,863	2,783	15,576	111,540

The additions during 2024 were mainly related to the construction of the the new log

yard. In addition there was investments during the financial period related to the

channel dryer, the renewal of the second planing mill, and the new sawmill, among

others.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 148

ACCOUNTING POLICY

Land is recognised in property, plant and equipment at cost. Other property,

plant and equipment is recognised at cost less accumulated depreciation and

any impairment. Cost includes expenditure that is directly attributable to the

acquisition of the items. Financial costs of loans used to finance the construction

of assets are capitalised as part of the cost of tangible fixed assets over the

construction period when the conditions for capitalisation are met.

In business combinations, tangible fixed assets are recorded at fair value at the

time of acquisition.

Depreciation is calculated using the straight-line method over the estimated

useful life of the asset.

The estimated useful economic lives of property, plant and equipment are

• Buildings and structures 10–50 years

• Machinery and equipment5–15 years

• Other tangible assets5–40 years

The residual values and useful lives are reviewed, and adjusted if appropriate, at

the end of each reporting period. An asset’s carrying amount is written down

immediately to its recoverable amount if the asset’s carrying amount is greater

than its estimated recoverable amount. Gains and losses on disposals are

determined by comparing proceeds with carrying amount. These are included in

the statement of comprehensive income

Impairment

Non-financial assets are tested for impairment whenever events or changes in

circumstances indicate that the carrying amount may not be recoverable. An

impairment loss is recognised for the amount by which the asset’s carrying

amount exceeds its recoverable amount. The recoverable amount is the higher

of an asset’s fair value less costs of disposal and value in use. The assets are tested

at the cash generating unit (CGU) level, which is represents the lowest level for

which there are separately identifiable cash inflows which are largely

independent of the cash inflows from other assets or groups of assets.

Non-financial assets that suffered an impairment are reviewed for possible

reversal of the impairment at the end of each reporting period.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 149

13. Forest assets

Koskisen owns 784 hectares of forest land in Southern and Central Finland at the end

of the financial period. The value of the forest assets, i.e. standing trees, is EUR 4.4

million as at 31 December 2025 (31 December 2024: EUR 3.9 million).


EUR thousand	2025	2024
Carrying value, at 1 Jan	3,915	3,599
Acquisitions of businesses and subsidiaries	93	-
Gain (loss) arising from changes in fair value	452	505
Decreases due to harvest	-98	-141
Decreases due to sales	-	-48
Carrying value, at 31 Dec	4,363	3,915

Koskisen uses forest certification and all of its own forests are certified by the

Programme for the Endorsement of Forest Certification (PEFC). PEFC sets requirements

for the monitoring of certified wood raw materials and wood products in supply chains.

In addition, the certification requires safeguarding the diversity of forests, maintaining

the health and growth of forests and the use of the forests for recreational use.

ACCOUNTING POLICY

The forest land is divided into the forest assets, i.e. standing trees, and land.

Forest assets are recognised at fair value less cost to sell. Land is recognised at

cost and presented in property plant and equipment.

The fair value of forest assets is calculated using the sum value method, in which

the values of the soil base, saplings and standing trees are valuated separately

and the total value is adjusted based on the special characteristics of the forests.

The fair value of forest assets is classified as level 3 in the fair value hierarchy due

to the use of the unobservable inputs, for example wood growth. Changes in the

fair value of the forest assets is recognised in the operating profit (loss) in the

statement of comprehensive income.

Key estimates and judgements

Valuation of forest assets

The valuation of forest assets is a complicated process and requires several

management estimates and judgement on assumptions that have a significant impact

on the value of the forest assets presented on the balance sheet. Factors requiring

management estimates include estimates on wood growth, analysing the

appropriateness of harvesting and stumpage prices and management review of the

valuation related data provided by third-party service providers. Stumpage prices used

in the calculations are based on prices from third-party valuation service providers and

have been compared to Finnish statistical database prices.

14. Leases

Koskisen’s lease contracts comprise leases of real estates, including offices, apartments,

warehouses and land areas, production machinery and equipment, cars and leases of

other machinery and equipment, such as IT equipment. The lease terms are fixed or

valid until further notice and may include extension or termination options. The lease

contracts may include index clauses, which are typically based on the consumer price

index. These are not included in the measurement of lease liability until they realise.

In addition, Koskisen has entered into an agreement for heat energy supply which

includes a lease contract for power plants. Koskisen has right to receive substantially all

the economic benefits from the use of the power plants. The agreement includes an

option based on which at the end of the 15 years agreement period, or in case of a

breaching event, Koskisen has the right, or obligation if the other party requires, to

redeem the power plants for itself or for a third party.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 150

The balance sheet shows the following amounts relating to leases:


EUR thousand	31 Dec 2025	31 Dec 2024
Right-of-use assets
Power plants	16,420	17,965
Machinery and equipment	13,782	14,584
Buildings	1,177	1,284
Land and water areas	229	209
Total	31,608	34,043

Lease liabilities
Non-current	26,921	29,465
Current	3,965	4,024
Total	30,886	33,489


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Additions to the right-of-use assets during the financial year	879	10,649

The statement of comprehensive income shows the following amounts relating to

leases:


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Depreciation charge of right-of-use assets
Power plants	1,710	1,659
Machinery and equipment	2,264	1,760
Buildings	392	310
Land and water areas	48	45
Total	4,413	3,773

Interest expense	2,318	2,209


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Expense relating to short-term leases¹	6	26
Expense relating to leases of low value assets that are not short-term leases¹	305	223

¹ Included in other operating expenses


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
The total cash flow for leases in the financial year	6,328	5,618

The maturity of the lease liabilities is presented in note 3: Financial risk and capital

management.

ACCOUNTING POLICY

At the contract inception, Koskisen assesses whether the arrangement is, or

contains, a lease. A contract is, or contains, a lease if the contract conveys the

right to control the use of an identified asset for a period of time in exchange for

consideration. Koskisen recognises a right-of-use asset and a corresponding

lease liability at contract commencement for leases where it is a lessor. The

contract commencement date is the date on which the asset is available for use

by the lessee.

Koskisen measures the lease liability at the commencement by discounting the

future lease payments to their present value. The lease payments include fixed

payments, variable lease payments based on an index or a rate, residual value

guarantees, which are expected to be payable by Koskisen and the exercise price

of a purchase option, if Koskisen is reasonably certain to exercise the option.

Penalties for terminating the lease are included in the lease liability measurement

if the lease term reflects that Koskisen will use the termination option.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 151

Koskisen discounts lease payments using the interest rate implicit in the lease. If

that rate cannot be readily determined, Koskisen uses the incremental

borrowing rate, i.e. the rate that Koskisen would have to pay to borrow over a

similar term, and with a similar security to obtain an asset of a similar value to

the right-of-use asset in a similar economic environment. Interest expense on

lease liabilities is presented in the cash flow from operating activities.

After the lease commencement, lease liability is measured at amortised cost

using the effective interest method. Lease liability is remeasured when the lease

payments change due to, for example, index change, exercising of the option

included in the lease is reassessed or to reflect other lease modifications.

Right-of-use assets are measured at cost comprising the initial amount of the

lease liability, any lease payments made at or before the contract

commencement, any initial direct costs and restoration costs. Right-of-use assets

are depreciated using the straight-line method over the shorter of the asset’s

useful life and lease term. If Koskisen is reasonably certain to exercise a purchase

option, the right-of-use asset is depreciated over the asset’s useful life.

Koskisen applies the short-term and low value asset exemptions provided by the

standard. Short-term leases are leases with a lease term of 12 months or less. Low

value assets include, among others, bicycles and ICT equipment. Lease payments

associated with those leases are recognised as an expense on a straight-line

basis.

Koskisen has minor activities as a lessor by leasing its land areas and

apartments. Koskisen classifies all of its leases as operating leases as the leases

do not transfer substantially all of the risks and rewards incidental to ownership

of an underlying assets.

Key estimates and judgements

Embedded leases

Koskisen has agreements for heat energy supply and sawn timber manufacturing for

which management has assessed whether the agreements include a lease. When the

agreements include an identified asset and Koskisen utilises substantially all of the

capacity of the assets and therefore obtains substantially all of the economic benefits

from the use of the assets, and if Koskisen also has right to direct the use of the asset

for a period of time, Koskisen accounts the arrangement as a lease. In arrangements

where all lease payments are variable, not dependent on an index or a rate, and are not

in-substance fixed, no lease liability or right-of-use asset is recognised in the balance

sheet.

Lease term determination

Koskisen assesses the lease term on a lease-by-lease basis based on the contractual

obligations, economic incentives, and nature of the asset. Koskisen’s lease contracts

include contracts with fixed lease terms, extension and termination options and

contracts that are valid until further notice.

If the contract contains a fixed lease term without option to extend or to terminate the

lease, the lease term is set based on the fixed lease term. Extension options (or periods

after termination options) are only included in the lease term if the lease is reasonably

certain to be extended (or not terminated).

If the lease term is not stated clearly in the contract, or will continue in perpetuity until

further notice, management assesses the enforceable period of the lease based on the

contractual terms and reasonable certainty. In case there are no significant penalties

involved in contracts where the lease term is not stated clearly or continues until

further notice, the Group determines the lease term on a lease-by-lease basis reflecting

the Group’s need for the underlying asset and its strategic planning period of five years.

The lease term is reassessed if a significant event or change in circumstances occurs.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 152

Incremental borrowing rate determination

The incremental borrowing rate is determined based on recent third-party financing

agreements as a starting point, adjusted to reflect the lease term, credit risk for leases,

the leased asset and changes in financing conditions and operating environment since

third-party financing was received.

15. Intangible assets


EUR thousand	Customer relationships and Trademarks	Softwares	Advance payments and work in progress	Total
Cost at 1 Jan 2025	-	1,369	12	1,382
Translation differences	-	2	-	2
Additions	2,357	72	1	2,430
Acquisitions of businesses and subsidiaries	-	114	-	114
Disposals	-	-3	-	-3
Reclassifications	-	5	-5	-
Cost at 31 Dec 2025	2,357	1,560	8	3,925

Accumulated amortisation and impairment at 1 Jan 2025	-	-345	-	-345
Translation differences	-	-1		-1
Amortisation	-225	-361	-	-586
Accumulated amortisation and impairment at 31 Dec 2025	-225	-708	-	-932

Carrying value at 1 Jan 2025	-	1,024	12	1,036
Carrying value at 31 Dec 2025	2,132	852	8	2,992


EUR thousand	Softwares	Advance payments and work in progress	Total
Cost at 1 Jan 2024	3,622	30	3,652
Translation differences	2	-	2
Additions	48	12	60
Disposals	-2,345	-	-2,345
Reclassifications	43	-30	13
Cost at 31 Dec 2024	1,369	12	1,382

Accumulated amortisation and impairment at 1 Jan 2024	-2,344	-	-2,344
Translation differences	-1		-1
Accumulated amortisation of disposals and reclassifications	2,345		2,345
Amortisation	-346	-	-346
Accumulated amortisation and impairment at 31 Dec 2024	-345	-	-345

Carrying value at 1 Jan 2024	1,278	30	1,308
Carrying value at 31 Dec 2024	1,024	12	1,036

ACCOUNTING POLICY

Intangible assets are recognised at cost less accumulated amortisation and any

impairment losses. Intangible assets acquired in business combinations are

recognised at fair value at the date of acquisition and separately from goodwill if

they meet the criterion of identifiability.

The assets’ useful lives and amortisation methods are reviewed at the end of each

reporting period and adjusted, if necessary, to reflect changes in the expected

economic benefits. The amortisation of intangible assets is commenced when the

asset is ready for its intended use.

Impairments are presented in note 12: Property, plant and equipment.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 153

Customer relationships and Trademarks

Customer relationships and trademarks are recognised separately from goodwill in

business acquisitions if they meet the criterion of identifiability. The initial fair value

of customer relationships is determined based on assumed continuity of customer

relationships and cash flow over the customers’ remaining estimated lifetime using

the excess earnings method. The initial fair value of trademarks is determined from

a discounted cash flow analysis using the relief from royalty method. These are

recognised less accumulated amortisation and any impairment losses.

Amortisations are calculated on a straight-line method over the useful economic

lives of the assets, which is 6–15 years.

Software-related costs

Software costs are recognised as an asset if Koskisen has control over the

underlying asset, at historical cost less accumulated amortisation and

impairment losses. Amortisations are calculated on a straight-line method over

the useful economic lives of the assets which is five years.

16. Inventories


EUR thousand	31 Dec 2025	31 Dec 2024
Raw materials	33,533	29,060
Work in progress	5,060	4,981
Finished goods	23,790	15,186
Total	62,383	49,227

Write-downs of slow-moving inventories to net realisable value amounted to EUR 273

thousand in 2025 (2024: EUR 249 thousand). These were recognised as an expense

during the financial year and were included in changes in inventories in the statement

of comprehensive income. In 2025 the Group reversed a previous inventory write-down

of EUR 249 thousand, based on the Group’s assessment of the net realisable values

(2024: EUR 288 thousand). The amount reversed has been included in changes in

inventories in the statement of comprehensive income.

ACCOUNTING POLICY

Inventories are stated at the lower of cost and net realisable value, the cost being

determined by the weighted average cost method. The cost comprises raw

materials, direct labour, depreciation and an appropriate proportion of variable

and fixed overhead expenditure, the latter being allocated on the basis of normal

operating capacity. Net realisable value is the estimated selling price in the

ordinary course of business less the estimated costs of completion and the

estimated costs necessary to make the sale.

A valuation allowance is made for old, slow-moving inventories based on the

management’s best estimate of the expected net realisable value at the end of

the reporting period.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 154

17. Other receivables


EUR thousand	31 Dec 2025	31 Dec 2024
Non-current assets
Other accrued income on expenses	-	10
Total	-	10

Current assets
Advances of purchases of logs	5,468	4,047
VAT receivables	3,553	3,074
Accrued sales receivables	621	779
IT expenses accruals	562	508
Other accrued income on expenses	361	665
Other receivables	551	464
Total	11,116	9,536

Other receivables total	11,116	9,546

18. Assets held for sale


EUR thousand	2025	2024
Assets held for sale 1 Jan	447	-
Reclassification from Property, plant and equipment	-	729
Reclassification to Property, plant and equipment	-64	-
Impairment	-	-232
Disposals	-	-50
Assets held for sale 31 Dec	383	447

The machines and equipment of the decommissioned old sawmill have been classified

as assets held for sale in financial year 2024.

ACCOUNTING POLICY

An asset or disposal group is classified as held for sale if its carrying amount will

be recovered principally through a sale transaction rather than through

continuing use of the asset. For this to be the case, the asset or disposal group

must be available for immediate sale in its present condition subject only to

terms that are usual and customary for sales of such assets or disposal groups

and its sale must be highly probable. These assets, or the assets and liabilities in

the disposal group, are presented separately in the consolidated balance sheet

and are valued at the lower of its carrying amount and fair value less costs to sell.

Depreciation is not performed on long-term assets classified as held for sale or

being part of a disposal group classified as held for sale.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 155

19. Equity


EUR thousand	Total number of shares outstanding (pcs)	Treasury shares (pcs)	Total number of issued shares (pcs)	Share capital	Reserve for invested unrestricted equity
1 Jan 2024	23,010,573	1,086	23,011,659	1,512	73,843
Directed share issue without consideration, management ¹	13,500	-	13,500	-	-
31 Dec 2024	23,024,073	1,086	23,025,159	1,512	73,843
Directed share issue without consideration, management ¹	70,376	-	70,376	-	-
Directed share issue, business acquisition	1,000,000	-	1,000,000	-	8,040
31 Dec 2025	24,094,449	1,086	24,095,535	1,512	81,883

¹ Additional information in note 7: Share-based incentive plans

Share capital

Koskisen Corporation has one series of shares, and all shares are equally entitled to

dividends. One share carries one vote at the general meeting. The shares do not have a

nominal value. The Koskisen Corporation shares are listed on the Nasdaq Helsinki stock

exchange. The shares are included in the book-entry system maintained by Euroclear

Finland Ltd. The trading code is KOSKI and the ISIN code is FI4000533005.

On 16 February 2024 Koskisen Corporation’s Board of Directors decided on a free share

issue directed to the company’s CEO and CFO as part of management remuneration

based on the authorisation given by the annual general meeting on 11 May 2023. The

issued shares were registered in the trade register on 28 February 2024. The total

number of shares increased to 23,025,159 shares when the CEO and CFO were given

13,500 new shares. The value of the second instalment of the reward related to the

completion of the listing to Koskisen’s CEO corresponds to 18,000 shares, half of which

was paid in cash to cover the withholding tax. The value of the second instalment of the

reward to Koskisen’s CFO corresponds to 9,000 shares, half of which was paid in cash to

cover the withholding tax. The share issue without consideration did not impact the

company’s share capital or capital structure.

On 21 March 2025, Koskisen Corporation's Board of Directors decided on a free directed

share issue for the payment of share rewards under the company's long-term

performance-based incentive programme for 2022–2026 (earning period 2022–2024). A

total of 70,376 new shares were issued free of charge in a directed share issue to seven

persons covered by the incentive programme in accordance with the terms of the

programme. The rewards paid under the incentive programme to each participating

person were paid in shares and cash. The cash component covers the tax costs related

to the shares. The total of 70,376 shares issued in the free directed share issue were

registered in the Finnish Trade Register on 4 April 2025. Koskisen Corporation's Board of

Directors decided on the free directed share issue on the basis of an authorisation

granted by the Annual General Meeting on 16 May 2024.

The Board of Directors of Koskisen Corporation decided on 30 May 2025 on a directed

share issue of 1,000,000 new Koskisen shares to Iisveden Metsä Oy on the basis of the

authorisation given by the Annual General Meeting on 15 May 2025. As the share issue

was carried out in order to complete the acquisition, there was a weighty financial

reason for directing the share issue. The subscription price was entered in full in the

reserve of invested non-restricted equity. The share price on the transaction date was

EUR 8.04 per share.

Legal reserve

The legal reserve comprises the amounts transferred from distributable funds under

the articles of association or by decision of the general meeting.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 156

Reserve for invested unrestricted equity

The subscription prices of new shares, as well as other equity investments, are

recognised in the reserve for invested unrestricted equity, unless these are recognised

in full or in part in share capital according to a specific decision.

Treasury shares

The acquisition cost of treasury shares held by the Group is presented in equity as a

separate reserve that reduces the unrestricted equity.

Translation differences

Translation differences arising from the translation of the financial statements of

foreign subsidiaries are recognised in the other comprehensive income and accrued in

a separate equity reserve. The cumulative amount of translation differences is

recognised in the consolidated statement of comprehensive income on the disposal of

the net investment.

20. Earnings per share


EUR	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Earnings per share
Profit (loss) for the period attributable to the owners of the parent company (EUR)	8,620,018	8,287,597
Weighted average number of shares outstanding during the period	23,600,697	23,021,352
Diluted weighted average number of shares outstanding during the period	23,944,500	23,290,168
Basic earnings per share (EUR)	0.37	0.36
Diluted earnings per share (EUR)	0.36	0.36

ACCOUNTING POLICY

Basic earnings per share is calculated by dividing the profit attributable to

owners of the parent company by the weighted average number of ordinary

shares outstanding during the financial period. Diluted earnings per share

adjusts the figures used in the determination of basic earnings per share to take

into consideration the Group’s potential commitment to issue new shares in

the future.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 157

21. Financial assets and liabilities

FINANCIAL ASSETS AND FINANCIAL LIABILITIES BY CATEGORY


EUR thousand	Fair value hierarchy level	31 Dec 2025	31 Dec 2024
Financial assets measured at amortised cost
Trade receivables	-	31,398	23,835
Cash and cash equivalents	-	24,441	31,823
Total financial assets measured at amortised cost		55,838	55,658

Financial assets measured at fair value through profit or loss
Capital redemption contracts	1	11,692	11,236
Derivatives	2	141	277
Other assets measured at fair value through profit or loss	3	76	14
Total financial assets measured at fair value through profit or loss		11,909	11,526

Financial liabilities measured at amortised cost
Loans from financial institutions	2	48,152	32,772
Lease liabilities	-	30,886	33,489
Trade payables	-	38,892	29,211
Trade payables, payment system	-	7,265	6,470
Total financial liabilities measured at amortised cost		125,196	101,943

Financial liabilities measured at fair value through profit or loss
Derivative liabilities	2	-	141
Total financial liabilities measured at fair value through profit or loss		-	141

The fair value of the loans from financial institutions on 31 December 2025 was EUR

48.2 million (31 December 2024: EUR 32.8 million). The fair value of the loans has been

determined by discounting the future cash flows at the estimated market interest

rate at the time of reporting. The company has estimated that the contractual

interest rate of the loans is reasonably close to the market interest rate and has not

made an adjustment to the discount rate at which the fair values are determined, in

which case the fair values of the loans correspond to their nominal value. Since the

company’s loans from financial institutions have variable interest rates, the rise in

market interest rates during the period has been directly reflected in the Group’s

interest expenses and has therefore not affected the fair value of the loans. Fair values

of loans from financial institutions are classified in level 2 in the fair value hierarchy.

The fair value of derivatives is estimated based on the present value of future cash

flows, using market prices on the valuation date, and the fair value of capital

redemption contracts is estimated on the basis of counterparty quotes. Changes in the

fair value of derivatives and capital redemption contracts are recognised in financial

income and expenses. The most significant part of the changes in the fair value arises

from derivatives, and they are mainly due to changes in market interest rates during

the reporting period. The Group’s open USD balance position at the time of closing on

31 December 2025 mainly consisted of trade receivables and cash and cash equivalents,

totalling EUR 4.9 million (31 December 2024: EUR 3.1 million). The nominal value of the

hedging open futures on the reporting date is EUR 7.0 million (31 December 2024: EUR

3.6 million).

The hierarchy levels are as follows:

Level 1: The fair value of financial instruments traded in active markets (such as publicly

traded derivatives, and equity securities) is based on quoted market prices at the end of

the reporting period. The quoted market price used for financial assets held by the

Group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market

(for example, over-the-counter derivatives) is determined using valuation techniques

which maximise the use of observable market data and rely as little as possible on

entity-specific estimates. If all significant inputs required to fair value an instrument are

observable, the instrument is included in level 2.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 158

Level 3: If one or more of the significant inputs is not based on observable market data,

the instrument is included in level 3. This is the case for unlisted equity securities.

RECONCILIATION OF FINANCIAL LIABILITIES


EUR thousand	Borrowings	Lease	Total
1 Jan 2024	37,711	25,989	63,700
Cash flows from financing
Repayments of borrowings	-6,625	-3,657	-10,281
Other changes
Exportkredit and Kredex loans¹	1,713	-	1,713
New leases	-	11,157	11,157
Effect of applying the effective interest rate¹	-27	-	-27
31 Dec 2024	32,772	33,489	66,262
Cash flows from financing
Proceeds from borrowings	35,000	-	35,000
Repayments of borrowings	-19,914	-4,318	-24,233
Other changes
New leases	-	1,715	1,715
Effect of applying the effective interest rate¹	294	-	294
31 Dec 2025	48,152	30,886	79,038

¹ No cash flow impact

Changes in financial liabilities

During the financial year, Koskisen renewed its financing agreement, which had been

concluded in 2022 and consisted of three parts: an initially fixed-term loan of EUR 19.0

million, a fixed-term loan of EUR 10.0 million and a revolving credit facility of EUR 8.0

million, aimed at financing the Group’s working capital. These loans were replaced by a

fixed-term loan of EUR 23.0 million and a revolving credit facility of EUR 15.0 million. The

new loan was used to repay the old fixed-term loans, of which a total of EUR 13.0 million

remained. The reolving credit facility was not in use when the new loan was drawn.

The financing agreement is valid for five years until 2030. The loan agreement includes

standard financing covenants and default terms. The new loan is unsecured. The

financing covenants are measured quarterly on a rolling 12-month basis and are

calculated based on Koskisen's consolidated financial information. The interest rate of

the loan is tied to the six-month Euribor rate, and it also has 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

financial year. The financing is allocated to investments to increase capacity in the

Sawn Timber Industry and Panel Industry segments. The loan has a term of seven years

and will mature at the end of 2032. The loan is unsecured and includes similar

covenants as the financing agreement mentioned above. The interest rate of the loan is

tied to the six-month Euribor rate, and it also has a margin, the level of which depends

on the ratio of net debt to EBITDA.

A total of EUR 20.1 million in loans have been raised in previous financial years relating

to the financing package for the new sawmill. The loans are repaid semi-annually. The

loans will mature between 2029 and 2031. The interest rates on the loans are tied to the

six-month Euribor rate and the margins are fixed.

Koskisen’s loans from financial institutions expose the Group’s cash flow to interest rate

risk. There have been no changes in Koskisen’s interest rate risk hedging policy, but the

Group’s management constantly evaluates the amount of open risk and the need for

additional hedging. At the end of the financial year Koskisen has interest rate swaps

with a total nominal value of EUR 25 million. The changes in the fair value of the interest

rate swaps net out the profit effects of the loan’s interest rate changes, protecting the

Group from interest rate risk, even though they are not one-to-one with the Group’s

financial institution loans. The interest rate swap agreements mature during 2028.

The Group’s exposure to various risks associated with the financial instruments is

discussed in the note 3: Financial risk and capital management. The maximum

exposure to credit risk at the end of the reporting period is the carrying amount of

each class of financial assets mentioned above.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 159

ACCOUNTING POLICY

The Group’s financial assets comprise trade receivables, capital redemption

contracts, deposits and cash and cash equivalents. Capital redemption contracts

are classified as financial assets at fair value through profit or loss and trade

receivables, deposits and cash and cash equivalents are classified as financial

assets measured at amortised cost, as assets are for collection of contractual

cash flows, where those cash flows represent solely payment of principal and

interest. Interest income from these financial assets is included in finance

income using the effective interest rate method.

Financial assets are derecognised when the rights to receive cash flows from the

financial assets have expired or have been transferred and the Group has

transferred substantially all the risks and rewards of ownership. Any gain or loss

arising on derecognition is recognised directly in the statement of

comprehensive income and presented in other operating expenses.

Capital redemption contracts

Koskisen has invested in capital redemption contracts. These contracts are

measured at fair value through profit or loss as they don’t meet the solely

payments of principal and interest (SPPI) test under IFRS 9 Financial

instruments.

Derivatives

Derivatives are initially recognised at fair value on the date a derivative contract

is entered into, and they are subsequently remeasured to their fair value at the

end of each reporting period. The Group has entered into interest rate swap

contracts and foreign currency forward contracts for hedging purposes, even

though hedge accounting, as specified under IFRS, is not applied. The fair value

of derivatives is estimated based on the present value of future cash flows using

market prices on the measurement date.

Trade receivables

Trade receivables are amounts due from customers for goods sold or services

performed in the ordinary course of business. They are generally due for

settlement within 30 days and are therefore all classified as current. Trade

receivables are recognised initially at the amount of consideration that is

unconditional, unless they contain significant financing components, when they

are recognised at fair value. The Group holds the trade receivables with the

objective of collecting the contractual cash flows and therefore measures them

subsequently at amortised cost using the effective interest method. Details on

the Group’s impairment policies and the calculation of the loss allowance are

provided in note 3: Financial risk and capital management.

Due to the short-term nature of the trade receivables, their carrying amount is

considered to be the same as their fair value.

Deposits

Time deposits with a maturity of more than three months are presented in

deposits.

Cash and cash equivalents

Cash and cash equivalents presented in the balance sheet and cash flow

statement consist of cash at bank and in hand. Any utilised credit limits are

presented as current liabilities. Credit limits are a part of the liquidity

management. Liquidity risk and its management is described in note 3: Financial

risk and capital management.

Impairment of financial assets

For trade receivables and contract assets Koskisen applies the simplified

approach permitted by IFRS 9, which requires expected lifetime losses to be

recognised from initial recognition of the receivables.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 160

To measure the expected credit losses, trade receivables have been grouped

based on ageing category. The expected loss rates are based on the actual

performance over the comparison period. The historical loss rates are adjusted to

reflect current and forward-looking information on macroeconomic factors

affecting the ability of the customers to settle the receivables. The factors

considered include, but are not limited to, customers’ previous payment

behaviour, available forecasts and their possible impact on the credit rating and

payment behaviour of customers, as well as possible securities and credit

insurances.

Receivables are derecognised as final credit losses when their payment cannot

be reasonably expected. Indications that the payment cannot be reasonably

expected include unsuccessful collection efforts, bankruptcy notification etc.

Credit risk arising from financial assets, management of credit risk and the

provision matrix of trade receivables are presented in note 3: Financial risk and

capital management.

Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred.

Borrowings are subsequently measured at amortised cost. Any difference

between the proceeds (net of transaction costs) and the redemption amount is

recognised in the statement of comprehensive income over the period of the

borrowings using the effective interest method. Fees paid on the establishment

of loan facilities are recognised as transaction costs of the loan to the extent that

it is probable that some or all of the facility will be drawn down. In this case, the

fee is deferred until the draw-down occurs. To the extent there is no evidence

that it is probable that some or all of the facility will be drawn down, the fee is

capitalised as a prepayment for liquidity services and amortised over the period

of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified

in the contract is discharged, cancelled or expired. The difference between the

carrying amount of a financial liability that has been extinguished or transferred

to another party and the consideration paid, including any non-cash assets

transferred or liabilities assumed, is recognised in the statement of

comprehensive income as other income or finance costs.

Borrowings are classified as current liabilities unless the Group has an

unconditional right to defer settlement of the liability for at least 12 months after

the reporting period.

Trade payables

Trade payables represent liabilities for goods and services provided to the Group

prior to the end of the financial year which are unpaid. The amounts are

unsecured and are usually paid within 30 days of recognition. Trade payables are

presented as current liabilities unless payment is not due within 12 months after

the reporting period. They are recognised initially at their fair value and

subsequently measured at amortised cost using the effective interest method.

The carrying amount of trade payables is considered to equal their fair value due

to their short maturity.

Trade payables, payment system

Koskisen provides, as part of its wood procurement process, a possibility for the

seller to leave the transaction price or part of the transaction price received from

the sale of logs in the payment system with Koskisen. This is offered the current

applicable interest rate based on the euro amount submitted to the payment

system. The agreement is valid until further notice and the seller has the right to

withdraw funds twice a year with a 45-day notice period. Payment system trade

payables are recognised initially at their fair value and subsequently measured at

amortised cost using the effective interest method. Due to the right to withdraw

the funds, the payables are presented as current on the balance sheet. The

carrying amount of the payment system trade payables is considered to equal

their fair value due to their short maturity.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 161

22. Provisions


EUR thousand	Environmental provisions	Total
1 Jan 2025	239	239
Increase	84	84
Used during the year	-62	-62
31 Dec 2025	261	261

Non-current provisions	187	187
Current provisions	74	74
Total	261	261


EUR thousand	Environmental provisions	Total
1 Jan 2024	185	185
Increase	118	118
Used during the year	-65	-65
31 Dec 2024	239	239

Non-current provisions	150	150
Current provisions	89	89
Total	239	239

Koskisen has a provision to cover costs estimated still to incur from the cleaning of

groundwater. As a consequence of the 1976 fire at the sawmill, a significant amount of

chlorophenol ended up in groundwater around the factory. The Group has since

committed funds to clean the contaminated ground and groundwater. Currently the

chlorophenol content has been lowered to low levels, but Koskisen will continue the

cleaning and monitoring work for some years to come. The progress of the cleaning

and the necessary measures are evaluated annually in cooperation with the

environmental authorities and groundwater experts.

ACCOUNTING POLICY

Provisions are recognised when the Group has a present legal or constructive

obligation as a result of past events, it is probable that an outflow of resources

will be required to settle the obligation, and the amount can be reliably

estimated. Provisions are not recognised for future operating losses. Provisions

are measured at the present value of management’s best estimate of the

expenditure required to settle the present obligation at the end of the reporting

period. Provisions are presented as current liabilities if amounts are expected to

be settled within 12 months from the end of the reporting period. Otherwise

provisions are presented as non-current liabilities.

Key estimates and judgements

Estimation of the amount and timing of the provision

An estimate of the financial impact of a past event requires judgement from the

management. Koskisen’s management has estimated that the groundwater cleaning

will continue for another about five years. The expected costs have been estimated

based on the historical costs and knowledge of similar events. The provision amounts

are reviewed regularly and adjusted as necessary to reflect the best estimate at the end

of the reporting period. Actual expenses may differ from the estimates.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 162

23. Other payables


EUR thousand	31 Dec 2025	31 Dec 2024
Non-current liabilities
Contingent considerations from acquisition of business	3,165	-
Accrued employee expenses	17	14
Total	3,182	14

Current liabilities
Accrued employee expenses	9,502	7,869
Payroll tax liabilities	2,655	2,210
Subcontractor accruals	2,025	1,675
Accruals related to materials and services	966	925
Other liabilities	426	485
Interest liabilities	219	475
Property tax liability	-	179
VAT liabilities	17	-
Other accrued liabilities	595	483
Total	16,405	14,300

Other liabilities total	19,587	14,314

24. Group structure

Subsidiaries belonging to the Group as at 31 December 2025 are presented in the

following table:


Subsidiary	Country of incorporation	Group ownership % 31 Dec 2025	Group ownership % 31 Dec 2024
Kosava-Kiinteistöt Oy	Finland	100%	100%
Koskisen Sp z.o.o	Poland	100%	100%

ACQUISITIONS OF BUSINESSES

On 1 June 2025 Koskisen Corporation acquired the business operations of Iisveden

Metsä Oy. Located in Suonenjoki, Iisveden Metsä is a company mainly owned by private

individuals and it produces approximately 140,000 m3 of spruce sawn timber per year.

Details of the purchase consideration, the net assets acquired and goodwill are as

follows:


EUR thousand	2025
Purchase consideration:
Cash paid	15,009
Share issue	8,040
Contingent considerations	2,991
Total purchase consideration	26,041

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 163


EUR thousand	2025
Net assets acquired, fair value
Property, plant and equipment	18,264
Forest assets	93
Right-of-use assets	169
Customer relationships	1,830
Trademark	479
Other intangible assets	163
Deferred tax assets	63
Inventories	5,742
Other assets	1,197
Other long-term employee benefits	-145
Deferred tax liabilities	-552
Lease liabilities	-169
Other payables	-432
Net identifiable assets acquired	26,702
Negative goodwill	-662
Net assets acquired	26,041

The fair value of the 1,000,000 shares issued as part of the consideration paid was based

on the published share price on the acquisition date of EUR 8.04 per share.

The fair value of the contingent consideration is estimated at EUR 3.0 million at the

time of the acquisition. There are two contingent additional purchase prices. Their

combined maximum amount is EUR 4.0 million and they will be paid in cash. The first

additional purchase price depends on the development of the spruce sawn timber

price index compared to the projected indexed price development of the acquired

business in 2025-2027. The second additional purchase price depends on the average

price of spruce logs in the standing timber trade of industrial wood in 2025-2027 and

the development of the spruce sawn timber price index compared to the projected

indexed price development of the acquired business. The total possible undiscounted

range of the additional purchase prices is EUR 0-4 million. Management estimates that

the additional purchase prices will be realised in full.

The acquisition resulted in a negative goodwill, which has been recognised directly to

the income statement in other operating income. Koskisen Corporation obtained a

favourable deal, due to the competitive situation in the industry and the long-standing

uncertainty in the markets. The negative goodwill is not subject to taxation.

The acquisition cost calculation is considered final. No significant adjustments have

been made to it during the review period.

The acquired business contributed revenues of EUR 30.3 million and operating loss of

EUR 0.3 million for the period from 1 June to 31 December 2025 (does not include the

recognition of negative goodwill). If the acquisition had occurred on 1 January 2025,

consolidated pro-forma revenue and operating profit for the period from 1 January to 31

December 2025 would have been EUR 383.4 million and EUR 14.8 million respectively.

Acquisition-related costs of EUR 0.7 million are included in other operating expenses in

the statement of profit or loss and in operating cash flows in the statement of cash

flows.

ACCOUNTING POLICY

Subsidiaries are companies in which the Group has control. The Group has

controlling power in a company when, by being part of it, it is exposed to its

variable return or is entitled to variable return and it is able to influence this

return by using its power over the company to direct its operations. Subsidiaries

are combined in the consolidated financial statements in their entirety from the

day the Group acquires control over them. The merger is terminated when

control ceases.

Transactions between Group companies, including internal receivables and

payables, income and expenses and unrealised profits, are eliminated. Unrealised

losses are also eliminated, unless the transaction gives indications of a decrease

in the value of the transferred asset.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 164

25. Related party transactions

Koskisen’s related parties consists of the members of the Board of Directors, the Chief

Executive Officer (CEO), members of the Executive Board and shareholders with

significant influence over the company. The related parties also include the close family

members of these aforementioned individuals and entities in which these individuals

have either control or joint control.

COMPENSATION AND REMUNERATION TO THE MEMBERS OF THE EXECUTIVE

BOARD AND BOARD OF DIRECTORS


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
CEO
Wages and salaries and other short-term employee benefits	465	447
Pension costs – defined contribution plans	146	133
Share-based payments	286	115
Total	897	694

Executive Board
Wages and salaries and other short-term employee benefits	1,190	1,030
Pension costs – defined contribution plans	371	321
Share-based payments	702	57
Total	2,264	1,408

Board of Directors
Wages and salaries	291	267
Pension costs – defined contribution plans	-	1
Total	291	267

Total remuneration of the management and Board of Directors	3,451	2,370

The CEO’s remuneration consists of a fixed monthly salary, fringe benefits and variably

short- and long term incentive plans. He has the opportunity to receive a short-term

performance bonus, the maximum amount of which is the equivalent of six months’

salary until 31 December 2025 and the equivalent of eight month’s salary from 1 January

2026. The amount of the performance bonus depends on the annual targets. The CEO’s

period of notice is six months and the severance pay corresponds to six months’ salary.

The CEO has a defined contribution supplementary pension plan, the annual fee of

which is an amount equivalent to two months’ fixed salary. Based on the

supplementary pension agreement, the CEO may retire at the age of 65. The members

of the Executive Board also have a supplementary defined contribution pension plan,

the annual fee of which is an amount equivalent to two months’ fixed salary per

member of the Executive Board. The statutory pension expense of the CEO and

Executive Board for the financial year 2025 amounted to EUR 289 thousand (2024: EUR

240 thousand). The Board of Directors’ fees do not include statutory retirement

obligation.

Koskisen has long-term incentive plans for its key employees and the Group Executive

Board. More detailed information about the arrangements is presented in note 7:

Share-based incentive plans.

SHAREHOLDING OF THE KEY MANAGEMENT PERSONNEL


EUR thousand	31 Dec 2025	31 Dec 2024
Board of Directors, CEO and Executive Board
Shares (pcs)	160,081	6,449,204
Shareholding, %	1%	28%
Total number of shares outstanding (pcs)	24,094,449	23,024,073

Additional information about changes in shares in note 19: Equity.

On 31 December 2025, the members of the Board of Directors, CEO and Executive

Board held altogether 160,081 shares. The figures include the holdings of their own,

their close family members and control entities. During the financial year, no loans have

been granted to the Group’s management. No pledges have been given or other

commitments made on behalf of the company’s management and shareholders.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 165

RELATED PARTY TRANSACTIONS


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Purchases of materials and supplies	-112	-88
Rent expense	-	-3
Total	-112	-90

During the financial period, the company purchased wood from a close family member

and from a control entity of a member of the Board of Directors belonging to the

company’s related parties.

26. Contingent liabilities and commitments


EUR thousand	31 Dec 2025	31 Dec 2024
Liabilities for which collaterals have been given
Loans from financial institutions	-	15,500

Mortgages
Real estate mortgages	-	307,200
Company mortgages	-	181,551

Account and guarantee limits in use at the balance sheet date
Total amount of granted credit facility	15,000	8,000
Account limit, in use	-	-
Guarantee limit, in use	83	83

Guarantees
Advance payment, delivery, etc. guarantees	83	83

Koskisen has committed to a total of EUR 14.9 million in payments related to

investments. The commitments are mainly related to the district heating connection

pipeline between the production plants located in Järvelä, the new channel dryers for

Järvelä sawmill, and the Panel Industry segment's investment programme.

Legal disputes

At the closing date of 31 December 2025, there were no significant on-going legal

disputes (31 December 2024: no significant legal disputes).

ACCOUNTING POLICY

Contingent liability is a possible obligation that arises from past events and

whose existence will be confirmed only by the occurrence or non-occurrence of

one or more uncertain future events not wholly within the control of the Group.

A present obligation is considered as contingent liability when it is not probable

that an outflow of resources is required to settle the obligation, or the amount of

the obligation cannot be measured with sufficient reliability.

27. Events after the financial period

Koskisen announced on 6 February 2026 the proposals of Koskisen Corporation’s

Shareholders’ Nomination Board to the Annual General Meeting 2026.

Koskisen announced on 10 February 2026 that the company has on 9 February 2026

received an announcement under Chapter 9, Section 5 of the Securities Markets Act,

according to which the total holdings of shares and voices of Varma Mutual Pension

Insurance Company in Koskisen Corporation has crossed above the 5 percent

threshold. According to the notification, on 9 February 2026, Varma Mutual Pension

Insurance Company holds in total 2,001,752 shares in Koskisen Corporation, which

corresponds to 8.31 per cent of all shares and votes in Koskisen Corporation.

Koskisen announced on 13 February 2026, that the Board of Directors has resolved on

the criteria and targets as well as the key employees eligible for the earning period

2026–2028 of a share-based incentive programme.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 166

Parent company’s Financial Statements (FAS)

Income statement


EUR	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
REVENUE	340,093,510.61	270,998,529.97
Change in inventories of finished goods and work in progress	8,707,293.24	4,928,576.67
Production for own use	45,828.91	437,035.99
Other operating income	3,575,957.01	3,213,154.91

Materials and services
Materials, supplies, goods
Purchases during the period	-189,213,931.44	-138,142,526.88
Change in inventories	4,147,521.96	5,613,380.42
Materials, supplies, goods	-185,066,409.48	-132,529,146.46
External services	-43,740,641.05	-39,921,664.50
Materials and services	-228,807,050.53	-172,450,810.96

Personnel expenses
Wages and salaries	-41,601,190.45	-36,262,349.23
Pension costs	-7,061,514.31	-6,152,072.55
Other social security costs	-1,812,169.07	-1,238,773.33
Personnel expenses	-50,474,873.83	-43,653,195.11

Depreciation, amortisation and impairment
Depreciation and amortisation	-9,657,943.67	-6,952,280.49
Depreciation, amortisation and impairment	-9,657,943.67	-6,952,280.49

Other operating expenses	-54,500,661.36	-46,556,401.81
OPERATING PROFIT (LOSS)	8,982,060.38	9,964,609.17


EUR	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Finance income and expense
Income from investments	1,057.50	1,012.50
Other interest and financial income
From group undertakings	48,211.53	83,268.59
From others	1,693,762.32	2,725,892.28
Interest expenses and other financial expenses
To group undertakings	-29,441.90	-26,377.86
To others	-3,013,137.74	-3,916,063.80
Finance income and expense	-1,299,548.29	-1,132,268.29

PROFIT (LOSS) BEFORE APPROPRIATIONS AND TAXES	7,682,512.09	8,832,340.88

Appropriations
Change in cumulative accelerated depreciation	-7,501,872.63	-6,152,034.78
Appropriations	-7,501,872.63	-6,152,034.78

Income taxes
Taxes for current and prior periods	5,869.79	-19,744.59
Income taxes	5,869.79	-19,744.59

PROFIT (LOSS) FOR THE PERIOD	186,509.25	2,660,561.51

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 167

Balance sheet


EUR	31 Dec 2025	31 Dec 2024
ASSETS

NON-CURRENT ASSETS
Intangible assets
Goodwill	1,276,128.93	–
Other intangible assets	890,919.86	1,165,438.31
Advance payments	7,955.00	12,328.00
Intangible assets	2,175,003.79	1,177,766.31

Tangible assets
Land and water areas	6,525,163.97	6,129,857.97
Buildings and structures	46,765,823.82	39,544,381.20
Machinery and equipment	62,405,468.62	45,897,420.43
Other tangible assets	10,023,421.91	2,711,471.68
Advance payments and work in progress	12,967,592.34	15,407,126.46
Tangible assets	138,687,470.66	109,690,257.74

Investments
Investments in Group companies	365,736.77	365,736.77
Other shares and equity interests	223,172.42	223,172.42
Other receivables	10,246,972.38	10,121,212.00
Investments	10,835,881.57	10,710,121.19

NON-CURRENT ASSETS	151,698,356.02	121,578,145.24

CURRENT ASSETS
Inventories
Materials and supplies	31,356,497.87	27,208,975.91
Work in progress	4,995,351.25	4,911,166.03
Finished goods	23,326,087.81	14,702,979.79
Inventories	59,677,936.93	46,823,121.73


EUR	31 Dec 2025	31 Dec 2024
Receivables
Non-current receivables
Receivables from Group companies	2,691,305.38	92,000.00
Prepayments and accrued income	2,727,964.24	3,334,178.56
Non-current receivables	5,419,269.62	3,426,178.56

Current receivables
Trade receivables	29,634,147.67	22,428,021.77
Receivables from Group companies	1,357,432.63	3,921,631.71
Other receivables	9,061,750.76	7,162,701.26
Prepayments and accrued income	2,970,546.55	2,530,042.07
Current receivables	43,023,877.61	36,042,396.81

Receivables	48,443,147.23	39,468,575.37

Cash equivalents
Other securities	5,000,000.00	20,000,000.00
Cash equivalents	5,000,000.00	20,000,000.00

Cash and bank	17,327,785.08	10,854,347.77

CURRENT ASSETS	130,448,869.24	117,146,044.87

ASSETS	282,147,225.26	238,724,190.11

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 168


EUR	31 Dec 2025	31 Dec 2024
EQUITY AND LIABILITIES
EQUITY
Share capital	1,512,000.00	1,512,000.00
Revaluation reserve	60,301.21	60,301.21

Other reserves
Legal reserve	16,202.59	16,202.59
Reserve for invested unrestricted equity	66,005,127.65	58,825,127.65
Other reserves	66,021,330.24	58,841,330.24

Retained earnings (loss)	54,648,428.63	54,759,201.00
Profit (loss) for the financial year	186,509.25	2,660,561.51
EQUITY	122,428,569.33	117,833,393.96

APPROPRIATIONS
Cumulative accelerated depreciation	42,787,137.56	35,285,264.93
APPROPRIATIONS	42,787,137.56	35,285,264.93

STATUTORY PROVISIONS
Other statutory provisions	–	140,674.00
STATUTORY PROVISIONS	–	140,674.00


EUR	31 Dec 2025	31 Dec 2024
LIABILITIES
Non-current liabilities
Loans from financial institutions	43,533,130.82	25,732,560.62
Liabilities to Group companies	913,142.19	852,480.26
Deferred tax liability	337,096.00	337,096.00
Accruals and deferred income	4,184,729.61	121,212.00
Non-current liabilities	48,968,098.62	27,043,348.88

Current liabilities
Loans from financial institutions	5,549,430.00	8,249,430.00
Advances received	927,654.32	977,840.98
Trade payables	38,395,434.95	28,848,009.94
Liabilities to Group companies	213,664.31	265,658.68
Other liabilities	10,117,461.17	8,894,432.21
Accruals and deferred income	12,759,775.00	11,186,136.53
Current liabilities	67,963,419.75	58,421,508.34

LIABILITIES	116,931,518.37	85,464,857.22

EQUITY AND LIABILITIES	282,147,225.26	238,724,190.11

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 169

Statement of cash flows


EUR	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Cash flow from operating activities
Profit (loss) for the period	186,509.25	2,660,561.51
Adjustments:
Depreciation, amortisation and impairment	9,657,943.67	6,952,280.49
Gains and losses of disposals of non-current assets	-114,256.85	249,228.83
Unrealised foreign exchange gains and losses	479,000.10	-109,992.09
Financial income and expenses	820,548.19	1,242,260.38
Appropriations	7,501,872.63	6,152,034.78
Income taxes	-5,869.79	19,744.59
Operating cash flow before working capital changes	18,525,747.20	17,166,118.49

Working capital changes
Increase (-) / decrease (+) in inventories	-7,254,236.10	-10,541,957.08
Increase (-) / decrease (+) in non-interest bearing receivables	-7,788,805.72	-1,099,029.22
Increase (+) / decrease (-) in non-interest bearing liabilities	11,373,724.62	2,129,359.57
Cash flows from operations before financial items and taxes	14,856,430.00	7,654,491.76

Interest paid from operating activities	-1,951,704.69	-2,205,011.44
Interest received from operating activities	526,193.19	1,910,011.10
Dividends received from operating activities	1,057.50	1,012.50
Other financial items for operating activities	-119,933.81	440,963.64
Income taxes paid	-859,472.86	1,397,334.26
Proceeds from repayments of loans	624,000.00	624,000.00
Net cash flow from operating activities	13,076,569.33	9,822,801.82


EUR	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Cash flow from investing activities
Purchase of tangible and intangible assets	-19,672,074.71	-19,754,383.44
Proceeds from sale of tangible and intangible assets	124,317.24	510,645.69
Acquisition of subsidiaries, net of cash acquired	-15,176,711.23	–
Investments in other investments	-63,517.61	-60,606.00
Repayment of time deposits	–	20,000,000.00
Net cash flow from investing activities	-34,787,986.31	695,656.25

Cash flow from financing activities
Proceeds from non-current borrowings	35,060,661.93	111,469.84
Repayment of non-current borrowings	-19,899,429.80	-6,624,714.90
Proceeds from current borrowings	1,571,843.51	859,296.72
Repayment of current borrowings	-776,887.47	-1,784,662.24
Dividends paid	-2,771,333.88	-7,367,703.36
Net cash flow from financing activities	13,184,854.29	-14,806,313.94

Net change in cash and cash equivalents	-8,526,562.69	-4,287,855.87

Cash and cash equivalents at the beginning of the period	30,854,347.77	35,142,203.64
Cash and cash equivalents at the end of the period	22,327,785.08	30,854,347.77

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 170

Notes to the financial statements of parent company

Basis of preparation

Koskisen Corporation’s financial statements for the financial year between 1 January to

31 December 2025, have been prepared in accordance with the provisions of the

Finnish Accounting Act and other regulations and provisions regarding the preparation

of financial statements valid in Finland.

Valuation of inventories

Inventories are valued at acquisition cost or, if lower, at probable replacement or

disposal cost. The acquisition cost is determined using the weighted average cost

method. In addition to direct costs, a part of the indirect costs of acquisition and

manufacturing is included in the acquisition cost of the inventory.

Valuation of non-current assets

Intangible and tangible assets are recognised at acquisition cost less depreciation,

amortisation and impairments, and increased by any revaluations. The revaluations are

based on an external assessment, and their existence is justified based on the

assessment of the company’s management. The deferred tax liabilities arising from the

revaluations have been deducted from the revaluation reserve in equity and presented

on the balance sheet in the ‘Deferred tax liabilities’. The acquisition cost includes the

variable costs resulting from procurement and manufacturing. The depreciation has

been calculated on a straight-line basis over the economic lifetime of the intangible

and tangible assets. The depreciation starts from the month the asset was

commissioned. The impairment is entered if the future income accrued by the asset is

permanently below the book value.

Depreciation periods are:

Other intangible assets5 years

Buildings20–50 years

Structures10 years

Machinery and equipment5–15 years

Other tangible assets5–40 years

Valuation of financial instruments and derivatives

In accordance with section 5:2 of the Accounting Act, financial assets are valued at the

acquisition cost or at the lower probable fair market value. Financial liabilities are

valued at their nominal value.

In accordance with the principles of risk management, the Group may use derivatives

as protection from the price risks of goods, interest rates or currency. Pursuant to

statement 1963/13.12.2016 of the Accounting Board, the negative fair value of interest

and currency derivative contracts at the balance sheet date is recorded in the income

statement and as a mandatory provision, as well as the possibly resulting deferred tax

in deferred tax receivables.

Koskisen hedges against electricity price risk fluctuations by making price fixings. For the

purchases 1–12 months forward, the range of the price fixing is 65–90%, for the following

13–24 months, the range of the price fixing is 35–75%, for the following 25–36 months, the

range of the price fixing is 10–50%, and for the following 37–48 months, the range of the

price fixing is 0–25%. The fair values of the electricity price fixings are treated as off-

balance sheet liabilities to the extent that electricity price fixings can be deemed to meet

the preconditions set forth in statement 1963/2016 of the Accounting Board for treatment

as an off-balance sheet liability. The electricity price fixings are settled and paid on a

monthly basis in accordance with the contracts. The electricity price fixings have been

deemed to meet the preconditions for treatment as an off-balance sheet liability.

Foreign currency items

Receivables and liabilities in foreign currency have been converted into EUR subject to

the exchange rate on the balance sheet date. The exchange rate gains or losses arising

from the valuation of receivables or liabilities are entered in the profit and loss account

as a financial exchange difference.

Deferred taxes

Deferred tax liabilities or assets have been calculated for temporary differences

between taxation and the financial statements on the basis of the tax rate of the next

years confirmed at the time of the financial statements. The balance sheet includes the

deferred tax liabilities in total as well as the deferred tax assets corresponding with the

amount of the estimated probable receivable.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 171

Notes to the income statement

Revenue by segments and geographical areas


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Distribution by industry
Panel Industry	136,173	131,249
Sawn Timber Industry	203,915	139,737
Other sales	5	12
Total	340,094	270,999

Geographical distribution
Finland	132,762	108,697
Japan	33,299	23,990
Poland	21,727	17,860
Germany	17,523	16,846
Other EU countries	94,823	73,492
Other countries	39,961	30,114
Total	340,094	270,999

Other operating income


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Sale of emission allowances	1,569	1,294
Other operating income from subsidiaries	1,320	1,203
Firewood sales to forest owners	190	237
External rental income	122	110
Gains on disposal of property, plant and equipment	117	53
Compensations received	51	35
Grants received	48	184
Other operating income	159	97
Total	3,576	3,213

Other operating expenses


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Sales freight and forwarding	-26,953	-21,807
Lease costs	-7,375	-6,581
IT expenses	-4,705	-4,138
Maintenance of property	-3,941	-3,677
Administrative expenses	-2,050	-1,537
Consulting and administrative services	-2,002	-1,735
Personnel related expenses	-1,740	-1,587
Sales commissions	-1,179	-664
Travel expenses	-1,080	-989
Marketing expenses	-786	-597
Research and development expenses	-129	-292
Other expenses	-2,562	-2,953
Total	-54,501	-46,556

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 172

Auditor remuneration


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Audit	-191	-148
Other assignments referred to in sections 1.1,2 § of the Auditing Act	-98	-27
Other services	-16	-30
Total	-305	-205

Average number of employees at parent company during the

financial year


	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Salaried employees	235	219
Workers	611	575
Total	860	794

Salaries and remuneration of management


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Board members and CEO
Wages and salaries and other short-term employee benefits	-756	-714
Pension costs – defined contribution plans	-146	-133
Share-based payments	-286	-115
Total	-1,187	-962

The CEO has a defined contribution supplementary pension plan, the annual

contribution of which is equivalent to two months’ fixed salary. Based on the

supplementary pension agreement, the CEO can retire at the age of 65.

Income tax


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Taxes for the financial year	-4	-39
Taxes for prior financial years	10	20
Total	6	-20

Finance income and expense


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Finance income
Dividend income from others	1	1
Interest income	474	1,488
Foreign exchange gain	936	552
Other finance income	331	769
Total	1,743	2,810


EUR thousand	1 Jan–31 Dec 2025	1 Jan–31 Dec 2024
Finance costs
Interest expenses	-1,696	-2,836
Foreign exchange loss	-1,072	-547
Other finance expenses	-274	-560
Total	-3,043	-3,942

The exchange rate differences are mainly due to changes in the exchange rates of the

U.S. dollar and the Polish zloty.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 173

Notes to balance sheet

The acquisition cost, additions, disposals and accumulated depreciation of the fixed assets of the parent company


	Intangible assets			Tangible assets					Investments
EUR thousand	Goodwill	Other long- term expenses	Advance payments	Land	Buildings and structures	Machinery and equipment	Other tangible assets	Advance payments and constructio n in progress	Investments in Group Companies	Other shares and equity interests	Other receivables	Total
Cost at 1 Jan 2025	-	2,458	12	6,130	79,654	113,030	6,681	15,407	366	223	10,121	234,083
Additions	1,445	186	1	402	7,470	16,174	1,858	12,127	-	-	126	39,788
Disposals	-	-3	-	-7	-	-206	-	-	-	-	-	-216
Reclassifications	-	5	-5	-	2,116	6,265	6,186	-14,567	-	-	-	-
Cost at 31 Dec 2025	1,445	2,647	8	6,525	89,240	135,262	14,725	12,968	366	223	10,247	273,655

Accumulated depreciation and impairment at 1 Jan 2025	-	-1,293	-	-	-40,110	-67,132	-3,970	-	-	-	-	-112,505
Accumulated depreciation of disposals and reclassifications	-	-	-	-	-	206	-	-	-	-	-	206
Depreciation	-169	-464	-	-	-2,364	-5,930	-732	-	-	-	-	-9,658
Accumulated depreciation and impairment at 31 Dec 2025	-169	-1,756	-	-	-42,474	-72,857	-4,701	-	-	-	-	-121,957
Value increases				2,281	2,741							5,022

Carrying value at 1 Jan 2025	-	1,165	12	6,130	39,544	45,897	2,711	15,407	366	223	10,121	121,578
Carrying value at 31 Dec 2025	1,276	891	8	6,525	46,766	62,405	10,023	12,968	366	223	10,247	151,698

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 174


	Intangible assets		Tangible assets					Investments
EUR thousand	Other long- term expenses	Advance payments	Land	Buildings and structures	Machinery and equipment	Other tangible assets	Advance payments and construction in progress	Investments in Group Companies	Other shares and equity interests	Other receivables	Total
Cost at 1 Jan 2024	4,750	30	6,138	78,200	101,237	7,359	17,043	366	223	10,061	225,406
Additions	25	12	12	1,783	5,680	-	13,787	-	-	61	21,359
Disposals	-2,346	-	-7	-1,120	-8,379	-677	-140	-	-	-	-12,670
Revaluation	-	-	-12	-	-	-	-	-	-	-	-12
Reclassifications	30	-30	-	791	14,492	-	-15,282	-	-	-	-
Cost at 31 Dec 2024	2,458	12	6,130	79,654	113,030	6,681	15,407	366	223	10,121	234,083

Accumulated depreciation and impairment at 1 Jan 2024	-3,167	-	-	-39,213	-70,767	-4,175	-	-	-	-	-117,323
Accumulated depreciation of disposals and reclassifications	2,346		-	1,119	7,697	609		-	-	-	11,770
Depreciation	-472	-	-	-2,016	-4,061	-403	-	-	-	-	-6,952
Accumulated depreciation and impairment at 31 Dec 2024	-1,293	-	-	-40,110	-67,132	-3,970	-	-	-	-	-112,505
Value increases			2,281	2,741							5,022

Carrying value at 1 Jan 2024	1,583	30	6,138	38,988	30,469	3,183	17,043	366	223	10,061	108,083
Carrying value at 31 Dec 2024	1,165	12	6,130	39,544	45,897	2,711	15,407	366	223	10,121	121,578

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 175

Group companies


Subsidiary company	Registered office	Parent company’s ownership 31 Dec 2025	Parent company’s ownership 31 Dec 2024
Kosava-Kiinteistöt Oy	Kärkölä, Finland	100%	100%
Koskisen Sp z.o.o	Warsaw, Poland	100%	100%

Receivables from Group companies


EUR thousand	31 Dec 2025	31 Dec 2024
Loan receivables:
Koskisen Sp z.o.o.	3,456	716
Total	3,456	716

Trade receivables:
Koskisen Sp z.o.o.	516	3,290
Kosava-Kiinteistöt Oy	45	8
Total	561	3,298

Accrued income:
Koskisen Sp z.o.o.	32	-
Total	32	-

All in total	4,049	4,014

Most significant items included in prepayments and accrued

income


EUR thousand	31 Dec 2025	31 Dec 2024
Non-current prepayments and accrued income
Prepaid rent of leasing contracts	2,728	3,334
Total	2,728	3,334

Current prepayments and accrued income
Income tax receivable	840	19
Accrued sales receivables	621	779
Prepaid rent of leasing contracts	615	608
IT expenses accruals	562	501
Other accrued income on expenses	328	443
Interest receivables	3	74
Other financial items	2	103
Accrued personnel costs	-	3
Total	2,971	2,530

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 176

Changes in equity


EUR thousand		2025	2024
Share capital	1 Jan	1,512	1,512
Share capital	31 Dec	1,512	1,512

Revaluation reserve	1 Jan	60	70
Revaluation reserve, reduction		-	-10
Revaluation reserve	31 Dec	60	60

Legal reserve	1 Jan	16	16
Legal reserve	31 Dec	16	16

Total restricted equity		1,589	1,589

Reserve for invested unrestricted equity	1 Jan	58,825	58,825
Directed share issue, business acquisition		7,180	-
Reserve for invested unrestricted equity	31 Dec	66,005	58,825

Retained earnings (loss)	1 Jan	57,420	62,127
Dividend distribution		-2,771	-7,368
Retained earnings (loss)	31 Dec	54,648	54,759

Profit (loss) for the financial year		187	2,661

Total unrestricted equity		120,840	116,245

Total equity		122,429	117,833

Distributable unrestricted equity


EUR thousand	31 Dec 2025	31 Dec 2024
Reserve for invested unrestricted equity	66,005	58,825
Retained earnings (loss)	54,648	54,759
Profit (loss) for the financial year	187	2,661
Total	120,840	116,245

Statutory provisions


EUR thousand	31 Dec 2025	31 Dec 2024
Negative fair value of derivatives	-	141
Total	-	141

Debts that mature after more than five years


EUR thousand	31 Dec 2025	31 Dec 2024
Loans from financial institutions	5,329	2,895
Total	5,329	2,895

Debts that mature after more than five years will mature by 13 December 2032.

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 177

Payables to Group companies

The main bank accounts of the Group’s Finnish companies are connected to the Group

account arrangement, the main holder of which is Koskisen Corporation.


EUR thousand	31 Dec 2025	31 Dec 2024
Liabilities based on the group account arrangement:
Kosava-Kiinteistöt Oy	913	852
Total	913	852

Trade payables:
Kosava-Kiinteistöt Oy	64	59
Koskisen Sp z.o.o.	147	204
Total	211	263

Accrued expenses:
Kosava-Kiinteistöt Oy	3	2
Total	3	2

All in total	1,127	1,118

Most significant items included in accruals and deferred

income


EUR thousand	31 Dec 2025	31 Dec 2024
Non-current accruals and deferred income
Contingent considerations from acquisition of business	4,000	-
Accrued personnel costs	185	121
Total	4,185	121

Current accruals and deferred income
Accrued personnel costs	9,026	7,452
Subcontractor’s accrued expenses	2,025	1,675
Heating energy accruals	966	925
Interest accrual	223	475
Income tax liability	-	44
Other short-term accrued expenses	520	616
Total	12,760	11,186

Deferred tax liability


EUR thousand	31 Dec 2025	31 Dec 2024
From value increases	337	337
Total	337	337

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 178

Notes to statement of cash flows

The cash and cash equivalents described in the statement of cash flows include cash,

bank receivables that can be converted into cash if necessary, and financial securities

with a highly liquid secondary market and with minimum risk of fluctuation in value. In

practice, the financial securities included in cash and cash equivalents, which are

presented in the balance sheet item Financial securities, are fund investments and

time deposits with a deposit period of three months or less.

Collaterals, commitments and off-

balance sheet arrangements

Given collaterals


EUR thousand	31 Dec 2025	31 Dec 2024
Liabilities secured by real estate- or business mortgages
Loans from financial institutions	-	15,500

Mortgages
Given real estate mortgages	-	307,200
Given business mortgages	-	181,551

Account- and guarantee limits in use at the balance sheet date
Total amount of granted credit facility	15,000	8,000
Account limit, in use	-	-
Guarantee limit, in use	83	83

Guarantees
Advance payment, delivery, etc. guarantees	83	83

Amounts payable from lease- and rental contracts


EUR thousand	31 Dec 2025	31 Dec 2024
Rental contracts
Payable during following year	4,070	3,414
Payable later	31,843	29,683
Total	35,913	33,097

Lease contracts
Payable during following year	2,431	2,330
Payable later	5,904	7,112
Total	8,335	9,442

Total rental and lease liabilities	44,248	42,539

Residual values of lease contracts
Payable during following year	-	5
Payable later	696	696
Total	696	701

The power plants sold to Lahti Energia by Koskisen Corporation, which have since been

transferred to the ownership of Loimua Oy, have a repurchase obligation after the end

of the contract period in October 2032. The repurchase price is estimated to be

approximately EUR 15 million. This amount is included above in the amounts payable

later for rental contracts.

Other liability commitments

Koskisen has committed to a total of EUR 14.9 million in payments related to

investments. The commitments are mainly related to the district heating connection

pipe between the production plants located in Järvelä, the new channel dryers for

Järvelä sawmill, and the Panel Industry segment's investment programme.

Koskisen Corporation’s loan share of Asunto Oy Puumera on 31 December 2025 was

EUR 102 thousand (31 December 2024: EUR 117 thousand).

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 179

The audit obligation of real estate investments in the financial statements


	2017	2018	2019	2020	2021	2022	2023	2024	2025	Total
Deducted VAT	135	818	1,456	184	287	566	5,382	683	2,608	12,118
Annual proportion of deducted VAT	13	82	146	18	29	57	538	68	261	1,212
Remaining years included in the review period	1	2	3	4	5	6	7	8	9
Refundable amount of deduction	13	164	437	74	144	339	3,768	546	2,347	7,831

Derivative contracts and electricity price fixings valid at

the balance sheet date


EUR thousand	2025 Fair value	2024 Fair value	2025 Nominal value	2024 Nominal value
Interest rate swaps
due 25 February 2025		53		10,000
due 1 July 2025		94		10,000
due 27 October 2025		130		10,000
due 8 May 2028	63		10,000
due 3 July 2028	61		15,000
Total, interest rate swaps	124	277	25,000	30,000
Deferred tax asset	-	-

Foreign exchange forward contracts
EUR-USD, due date 28 March 2025		-76		1,963
EUR-USD, due date 31 March 2025		-18		389
EUR-USD, due date 27 June 2025		-46		1,266
EUR-USD, due date 30 March 2026	22		4,221
EUR-USD, due date 29 June 2026	1		761
EUR-USD, due date 29 September 2026	-7		2,013
Total, foreign exchange forward contracts	17	-141	6,995	3,619

Electricity price fixings
Due in year 2025		-52		2,110
Due in year 2026	-312	-55	2,515	1,898
Due in year 2027	-64	-45	1,384	437
Due in year 2028	-1		582
Total, electricity price fixings	-376	-152	4,480	4,445

Timber reserve

The company has entered into binding agreements with forest owners regarding

future timber procurement (timber reserve). The amount of commitments at the end

of the financial year is approximately EUR 54,7 million (31 December 2024:

EUR 42,7 million).

Covenants

Loans from financial institutions include covenants. According to financing

agreements, lenders can make loans due early, if the covenant conditions are not met.

Loans from financial institutions are presented on the balance sheet in accordance with

the repayment plans of the financing agreements valid at the time of the financial

statements. During the financial year, the covenant conditions are reviewed quarterly.

The covenants were fulfilled in the financial year 2025 and are expected to be fulfilled

during the next financial year.

Share-based incentive plans

Share-based incentive plan 2022–2026

In March 2022, the Board of Directors of Koskisen Corporation decided on a share-

based incentive programme in place for its key employees for the years 2022 to 2026.

The incentive programme consists of three three-year earning periods, which are from

2022 to 2024, from 2023 to 2025 and from 2024 to 2026.

Share-based incentive plan 2022–2026 – Performance period 2022–2024

The key employees eligible for the programme, the incentives to be paid, the vesting

conditions and targets determined by the company’s Board of Directors were

communicated to the persons participating in the arrangement in June 2022. The key

employees eligible for the programme (six individuals) can receive a maximum of

138,000 company shares (gross amount) if the terms of the programme are met. During

Koskisen Corporation Report of the Board of Directors and Financial Statements 2025 | 180