Orthex Oyj

Annual Report • Mar 27, 2025

CONTENTS

Annual review	3
Orthex in brief	4
Key figures	5
Highlights of the year	6
Review by the CEO	7
Purpose and values	10
Strategy	11

Sustainability ¹⁴ Key sustainability actions 2024 15 Sustainability at Orthex 16 Environmental: Promoting circular economy 21 Social: Safe workplace and tested products 33 Sustainability Governance: Part of everyday work 39

Governance ⁴³ Corporate governance statement 2024 44 Board of Directors 48 Management Team 52 Remuneration report 2024 56

Financial review	60
Board of Directors' report	62

Financial statements 84

ANNUAL REVIEW

Annual and Sustainability Report 2024 3

Orthex in brief

Orthex is a leading Nordic houseware company. Orthex designs, produces, markets, and sells practical and durable household products with a mission to make consumers' everyday life easier. Orthex's products cover a multifunctional assortment of storage boxes, kitchen utensils and products for home and garden. Orthex main consumer brands are SmartStore™ in storage products, GastroMax™ in kitchenware and Orthex™ in home and garden products. In addition, Orthex sells kitchenware under the Kökskungen™ brand.

Orthex has more than 100 years of experience in household products, and it has approximately 800 customers in more than 40 countries. Orthex's core geographic market is Europe. Orthex is headquartered in Espoo, Finland and listed on Nasdaq Helsinki Ltd (ORTHEX).

Orthex aims to be the industry forerunner in sustainability. Our highquality, safe, and durable products are made with care and timeless design. They are made for long-term use and are recyclable in all our markets. We are actively increasing the share of recycled and renewable raw materials in our products. At the same time, we continuously strive to reduce the carbon footprint of our products and operations and are aiming towards carbon neutral production by 2030.

1) Invoiced sales of SmartStore, GastroMax, Orthex, and Kökskungen branded products accounted for 91% of total invoiced sales in 2024.

& garden

ANNUAL REVIEW SUSTAINABILITY GOVERNANCE FINANCIAL REVIEW

Key figures

	2024	2023	2022	2021	2020
Net sales, EUR million	89.7	85.9	84.0	88.7	75.9
Adjusted EBITA, EUR million	10.2	10.9	5.5	11.0	12.9
Adjusted EBITA margin, %	11.4%	12.7%	6.5%	12.4%	17.0%
Operating profit, EUR million	9.8	10.8	5.2	9.3	12.3
Net debt / Adjusted EBITDA	1.4x	1.5x	2.8x	1.7x	2.3x
Earnings per share, basic (EUR)	0.34	0.39	0.12	0.35	0.47

10.0%

Invoiced net sales growth outside Nordics

288

Personnel, FTE during the year 5.9%

Storage category growth

2.0kgCO2 eq./kg Our relative carbon footprint (2023: 2.0 kgCO2 eq./kg)

Highlights of the year

Review by the CEO

Orthex purpose is to improve consumers' everyday life with practical, beautiful, and durable products. We want to be the most sustainable choice for the consumers and offer timelessly designed, high-quality and safe products that are increasingly made from recycled and renewable raw materials. At the same time, we reduce the carbon footprint of our products and aim towards carbon-neutral production.

The year 2024 was characterized by low consumer confidence and customer carefulness, leading to a slower than normal business climate. Despite this, the full-year net sales were the highest ever so far and grew by 4.4% to 89.7 million euros (85.9).

The adjusted EBITA for 2024 declined and was 10.2 million euros (10.9). Considering the one-time energy price compensation received in 2023 in Sweden (0.7 million euros), the comparable EBITA improved by 0.6%. The profitability was affected by higher costs related to increased production cost as factories were planning for higher sales, reinforced commercial resources, and salary inflation. Towards the end of the year, the profitability was negatively impacted by higher credit loss provisions as well.

The full-year net cash flows from operating activities increased by 16.1% to 11.8 million euros (10.2). The net debt to adjusted EBITDA ratio (leverage) was down at a healthy 1.4 (1.5) at the end of the period.

The Board of Directors proposes a dividend payout of 0.22 euros per share, totalling 3.9 million euros and 63.9% of net profit meaning an increase in both dividends and in percentages compared to the year 2023.

Sales by geography

Strengthened by a solid first half of the year, the consolidated full-year total invoiced sales increased by 4.9%. Invoiced sales in the Nordics increased to 71.1 million euros from 68.7 million euros in 2023. Invoiced sales in the Rest of Europe increased by 10.0% to a record of 20.3 million euros (18.5) meaning that we reached our long-term invoiced sales growth target +10% outside the Nordics. In the end of the year, shipments to some customers were restricted due to increase in credit risks, and this had a negative impact on the sales growth outside the Nordics.

Invoiced sales in the Rest of Europe increased by 10%.

Sales by product category

The Storage category continued to grow at a pace of 5.9% compared to the previous year. Orthex is focusing on launching several new products in the Storage category. The modern range of SmartStoreTM Essence storage baskets made from recycled material was a remarkable new launch in 2024 and it was also recognised at the German Design Awards 2024 for its excellent product design. The Storage category accounted for 68.9% of total invoiced sales in 2024.

Kitchen and Home & Garden categories are traditionally strong in the Nordics, and the Kitchen category's invoiced sales grew by 4.1% year-on-year thanks to widening customer distribution and the successful rebranding of SmartStoreTM food storage products. The Home & Garden category invoiced sales remained flat compared to the previous year.

Accelerated sales with instore visibility

Our growth strategy with a focus on accelerated European and international growth with a strong commitment to sustainability is progressing well. Orthex's full-year invoiced sales in our European strategic markets grew by 10.0%. We focused on in-store visibility and an example of this is the building of over 500 SmartStore™ shelf implementations in major retail chains around Europe and the Nordics. We continued strengthening our international commercial teams, with more local resources in France and Germany. The stronger international presence is intended to accelerate future growth in the area. Invoiced sales outside the Nordic markets accounted for 22.9% (21.9) of Orthex's invoiced sales in 2024.

Our growth strategy is progressing well.

Our journey towards carbon neutrality

Orthex's main sustainability target is to aim towards carbon neutrality in production by 2030. In 2024, Orthex joined the Circular Economy Green Deal and committed to replace virgin raw materials with recycled and renewable raw materials. We have an ambitious target to increase the share of recycled and renewable raw materials in our production to 80% by 2030. In 2024, the share of recycled and renewable materials increased to 16.6% (2023: 15.8%).

We invest in novelties

Orthex invests in novelties on a continuous basis. One of our latest novelties is a stackable sorting solution Stack-it, an addition to our award-winning SmartStore™ Collect range. As sorting requirements grow, we are expanding this range to meet consumer needs and helping retailers to offer products that solve daily sorting and waste sorting needs. Made entirely from recycled plastic, this product range marks another step towards our sustainability goals and Orthex's ongoing commitment to increase the use of recycled and renewable materials in production. We have a rich program of new exciting products to be launched in the coming year and we are working systematically to improve the distribution of already launched novelties.

Solid performance

The business climate in 2024 was characterized by careful consumer behaviour and customer uncertainty. Although inflation pressures slowed down, and interest rates started decreasing during the year, demand did not recover remarkably. Orthex managed, however, to grow its full-year invoiced sales in all product categories and on all geographical markets ending the year with a record sales quarter. Even if I had anticipated more favourable operating conditions and stronger growth, I am convinced that our performance builds the momentum for the future. I am incredibly proud of the teamwork, individual efforts, and dedication of our employees in executing our growth strategy. I want to extend my heartfelt thank you to everyone at Orthex for their significant contributions throughout the year, and to all our customers and stakeholders for their trust in Orthex.

Alexander Rosenlew

CEO

Our purpose and values

We are inspired by our purpose: Improve everyday life with sustainable and practical products.

We develop, design, produce, and market functional household products to customers and consumers. Our offering is based on appealing and innovative concepts, responsibly produced, long-lasting products of high quality and strong brands.

Constant improvement through innovation

We believe in development through continuous improvement.

Professional implementation

We work hard to meet our customers' and consumers' expectations every day.

Respectful teamwork

We are committed to developing our employees, showing respect, and promoting health and safety.

Sustainable and responsible development

We strive to minimise our impact on the environment and actively promote sustainability.

Strategy

Orthex's key priorities in its growth strategy are to become the number one brand in the storage product category in Europe and strengthen its position as a leading Nordic houseware company with strong brands and sustainable products.

Solid actions to keep winning in the Nordics

Orthex aims to grow the Storage product category in the Nordics through campaigns, expansion of instore concepts and launch of novelties.

Orthex targets growth in the Kitchen product category by focusing on sustainable products and distribution expansion opportunities.

In 2024, the Nordics accounted for 77.1 percent of Orthex invoiced sales.

Accelerating growth in the international markets through strong customer collaboration provides growth 1 2 3 opportunities

Orthex expects major growth opportunities in the international markets and its go-to-market strategy is delivered through local presence with a key account approach. The key focus is to improve the distribution of Orthex products in Europe, invest in strategic customers and new customer acquisition.

In 2024, international markets accounted for 22.9 percent of Orthex invoiced sales.

Accelerating growth through the online retail channel

The company takes advantage of the e-commerce growth opportunities by strengthening relationships with e-commerce companies and working closely with retailers executing a multi-channel strategy.

Market consolidation

Orthex anticipates that acquisitions could be an important opportunity to reach the company's strategic objectives. Orthex intends to carefully evaluate acquisition opportunities in Europe. The synergies achieved through acquisitions are typically related to production, sales and marketing, logistics, product category expansions, overheads, and a stronger bargaining position.

Commercial factors supporting the growth strategy

CLEAR CATEGORY STRATEGY FOCUSING ON STORAGE

• Accelerating efforts to grow the Storage category in international markets utilising the company's long experience in the Nordics.
• The close distribution linkage between Kitchen and Storage categories enables cross-selling by leveraging Orthex's existing customer network.

SHOWING THE WAY IN SUSTAINABILITY

• Orthex aims to be the most sustainable choice for the consumer by offering high-quality, safe, and longlasting products with timeless design. Orthex is reducing the carbon footprint of its production and products by increasing the use of recycled and renewable raw materials.
• Orthex believes that it has potential to be a preferred supplier of sustainable products.

GROWTH THROUGH INNOVATIONS

• Innovation plays an important role in Orthex growth strategy.
• When developing new products and concepts Orthex will focus on improving consumers' everyday life with sustainable and practical products with timeless design.

Long-term financial targets

Sales growth

An annual organic net sales growth to exceed 5 per cent on a Group level, and 10 per cent outside the Nordics (growth in local currencies).

Profitability

Improving EBITA margin (adjusted for items affecting comparability) exceeding 18 per cent over time.

Leverage

Net debt to adjusted EBITDA below 2.5x. Leverage may temporarily exceed the target (for example, in conjunction with acquisitions).

Pay-out ratio

Distribution of a stable and over time increasing dividend with a pay-out of at least 50% of net profit on a bi-annual basis.

Annual and Sustainability Report 2024 14

Key sustainability actions 2024

ANNUAL REVIEW SUSTAINABILITY GOVERNANCE FINANCIAL REVIEW

Sustainability at Orthex

Sustainability is a core element in implementing Orthex's growth strategy and key objectives as we strive to be the number one brand in storage products in Europe and strengthen our position as a leading houseware company in the Nordics. Sustainability is a key factor in all decision making at Orthex and a significant driver of our development and investment agenda.

The main building blocks of our approach to sustainability are our longlasting products, sustainable raw materials, and our target towards carbon neutrality. We are actively increasing the share of recycled and renewable raw materials in our products, and we continuously strive to reduce the carbon footprint of our operations and products. The Science-Based Targets initiative (SBTi) has approved Orthex's near-term science-based emissions reduction target. This means that Orthex's climate targets are aligned with the target to keep global warming below 1.5°C in accordance with the Paris Agreement.

We strive to minimise our impact on the environment and actively promote sustainability in all our actions throughout the production and supply chains. In our decision making, we consider environmental aspects proactively.

Orthex's high-quality, safe, and durable products are made with care and timeless design. Orthex does not make single-use products. On the contrary, Orthex's products are made for long-term use and are fully recyclable in all our markets at the end of their life cycle.

Our key environmental principles are:

• We only produce durable products.
• We minimise the use of resources.
• We only use recyclable materials.
• We increase the amount of recycled and renewable raw materials in our products.

Orthex supports all seventeen UN Sustainable Development Goals (SDGs). Based on identified priority sustainability topics, we have determined the most relevant SDGs for Orthex, and how we can best contribute to them.

We always optimise the use of raw materials and use as much recycled material as we can. Our products are designed to be as efficient as possible to produce and transport in order to consume less energy. At our factories in Finland and in Sweden, our two main environmental targets are to reduce the use of electricity and to lower the scrap rate. When developing new products, we always consider how to optimise logistics. When transporting the products, we minimise the use of packaging.

EU's European strategy for plastics states that "plastics are an important material in our economy and daily lives". We also believe that plastic is a valuable raw material that should be used to make long-lasting, reusable, and recyclable products, such as our own. We are proud to be able to say that all our SmartStoreTM novelties launched in 2024 are made of durable recycled plastic. Orthex's products and resource-efficient operations contribute to the EU's target to accelerate the transition to a circular plastics economy.

Orthex is committed to innovation and sustainability and is actively participating in research projects to advance the use of recycled and renewable plastics. By participating in these projects, we aim to offer consumers the opportunity to choose more environmentally friendly products now and in the future. More information on these projects is available later in this report.

Our climate targets are aligned with the target to keep global warming below 1.5 degrees.

Materiality assessment

Orthex's sustainability work and sustainability strategy are based on a stakeholder materiality assessment to ensure that our sustainability efforts focus on the most relevant sustainability topics. The latest sustainability materiality assessment was conducted in 2022, and the materiality was reviewed during 2024 as part of the annual strategy review without major changes.

We ensure that our sustainability strategy is in line with stakeholders' expectations.

In the materiality matrix, the sustainability topics are presented based on their importance to our stakeholders and on the impacts on Orthex business. The matrix is based on 2022 materiality assessment, before the sustainability strategy was restructured to follow ESG (Environmental, Social and Governance) structure. The next materiality assessment will be conducted following the ESG structure.

Orthex materiality assessment

Importance to stakeholders

Orthex's sustainability strategy

Orthex's sustainability strategy follows the ESG structure, and it is confirmed annually for a three-year period. In the 2024 sustainability strategy review, no major changes were identified.

Environmental

We focus on continuously minimising our impact on the environment and climate, and our key target is aiming towards carbon neutral production by 2030. Our key environmental topics are environmentally sustainable choices, resource efficiency, and responsible production and consumption.

Social

Caring for our people, product safety, and customer satisfaction are the key elements of our social responsibility. Orthex promotes a zeroaccident vision and culture, and we measure our performance with Lost-Time Injury Frequency (LTIF) rate.

Governance

Orthex's way of conducting business goes beyond compliance with applicable laws and regulations - high ethical standards and integrity are present in all our activities. Our Code of Conduct and Supplier Code of Conduct define the key principles for how we engage in business.

Orthex's sustainability strategy, relevant sustainability topics and set indicators, targets, and results are illustrated in the following two pages.

Sustainability strategy

Targets and indicators

Orthex's sustainability targets and key performance indicators (KPIs)

Aspect	Topic	KPI	Indicator	Target	Result 2022	Result 2023	Result 2024
	Environmentally sustainable choices	Sustainable materials	Share of renewable and recycled materials (used kg)	2030 > 80%	13.6%	15.8%	16.6%
E			Increase sales of products made from renewable and recycled materials (%)	> 2 times net sales growth	5.0% (Net sales -5.2%)	67% (Net sales 2.3%)	15% (Net sales 4.4%)
	Resource efficiency	Energy efficiency	Improve 1% annually, baseline 2022 (kWh/produced kg)	< 1.059 in 2025	1.092	1.025	1.024
		Production scrap	Scrap rate	2024 < 1.42% 1)	0.96%	0.87%	0.95%
ENVIRONMENTAL	Responsible production and consumption	Reducing carbon footprint	CO2 calculation for our operations (tCO2eq./a)	Towards carbon neutral production by 2030	27,311 2)	30,019 2)	30,775
			CO2 per produced kg (kgCO2eq./a)	Reduce annually	1.9 2)	2.0 2)	2.0
S	Caring for our people	Employee health and safety	Sickness absence rate (factory employees)	< 5%	6.5%	6.1%	5.2%
		Zero accident culture	LTIF	< 10	9	6	10.5
		Employee satisfaction	Engagement index	Improve annually	N/A	79 / 100	81 / 100
	Product safety	Safe and tested products	All food contact materials tested	100%	100%	100%	100%
SOCIAL	Customer satisfaction	Customer satisfaction	Customer satisfaction rate	Improve	3.93 / 5 (2021)	4.08 / 5	4.08 / 5 (2023)
	Ethical business practices	Ethics and integrity	Share of employees committed to Code of Conduct	100%	N/A	100%	100%
G		Sustainable supply chain	Suppliers aligned with Supplier Code of Conduct (A + B Suppliers)	100%	N/A	88%	100%
			Share of suppliers that are BSCI members (in risk countries), repr. 90% of purchase value	100%	94%	100%	88%
GOVERNANCE	Transparency	Transparent reporting and	CDP reporting	Minimum B-level annually	B	A-	N/A 3)
		commitment	Commitment to Science-Based Targets initiative	Net-Zero Target validated and approved by 2025	N/A	In progress	In progress

1) New target for scrap rate: < 1.0% in 2025 and 2026

2) The figure has been adjusted to align with the updated plastics emission factors

3) Outcome of the 2024 CDP reporting is still pending.

Achieved In progress Actions needed New target

Environmental: Promoting circular economy

Orthex strives to continuously minimise its impact on the environment and climate. The products we manufacture are of the highest quality and are meant to last for years or even decades. Even after a product has worn out, it can be recycled, and the material reused for other purposes.

All our factories are ISO 14001 and 9001 certified for environmental and quality management, respectively. We are making significant efforts to increase energy efficiency and have been able to reduce energy consumption year after year.

Our focus areas within responsible production and consumption are reducing our greenhouse gas emissions, increasing the share of recycled and renewable raw materials in our production, and promoting the circular economy of plastics.

We focus on reducing our emissions.

Our road map towards carbon neutrality by 2030

We have set an ambitious target and are aiming towards carbon neutrality in our production by 2030. This is why we have simulated our road map towards carbon neutrality, taking into account Scope 1, 2 and 3 emissions.

In addition to direct greenhouse gas emissions from our operations (Scope 1) and the production of purchased energy (Scope 2), we have included the following relevant indirect emissions (Scope 3) in our target: purchased goods and services; fuel and energy-related activities; upstream transportation and distribution; and waste generated in operations.

Our Scope 2 emissions are zero since we use EPD certified renewable hydropower electricity in all our factories. As almost all our remaining emissions originate from the raw materials (Scope 3), we are focusing our efforts on increasing the share of recycled and renewable raw materials in our production. Key drivers enabling us to move towards our goal are further adoption of the mass balance approach (read more later in this section of the report), innovations, new sources of raw materials, and development of plastic recycling and recycling technology.

We focus our efforts on increasing the share of recycled and renewable raw materials in our production.

Orthex road map towards carbon neutrality by 2030

Most of our greenhouse gas emissions originate from purchased goods and services, such as raw material extraction, and the end-of-life of sold products, like the incineration of products for energy. The latter is excluded from our 2030 carbon neutrality target. This is because of our limited ability to influence consumer behaviour – whether they recycle or discard our products after use – but also because it is difficult to evaluate how the recycling of plastic develops.

As our products will be in use for decades, it is likely that by the time they reach their end-of-life stage, most plastic will be fully recycled. Even if we have limited influence on consumer recycling behaviour, we proactively promote the recycling of plastics in our communication channels and we actively participate in plastic recycling awareness-raising activities. In addition, we make considerable investments to find new methods and raw material solutions. Read more about our investments in research later in this report.

The emission factors used in the market-based calculation of Orthex's carbon footprint are based on widely used and trusted sources, such as the licensed databases of Ecoinvent and Sphera. When primary data from our suppliers is not available, average emission factors are used. In 2024, updates were made to these databases including more detailed data on fossil supply chains and improved information on related methane leaks. Consequently, the plastic emission factors, and related emissions increased. To maintain data comparability, we have updated the previous years' CO2 calculations with the updated emission factors.

In 2024, our relative carbon footprint that eliminates the impact of business growth decreased slightly and was 2.0 kg CO2 eq./kg (2023: 2.0 kg CO2 eq./kg). Due to volume growth, our total emissions increased slightly and were 30,775 tCO2-e (2023: 30,019 tCO2-e). We will continue to increase the share of recycled and renewable raw materials in our production to reduce emissions.

Carbon footprint 2020-2024 (tCO2 eq.)

					kgCO2 eq./kg
Year	Scope 1	Scope 2	Scope 3	Total	of plastic products	EoL sold products
2020	72	3,052	30,274 1)	33,398 1)	2.3 1)	27,280
2021	66	0	35,600 1)	35,666 1)	2.2 1)	30,203
2022	74	0	27,237 1)	27,311 1)	1.9 1)	26,534
2023	66	0	29,953 1)	30,019 1)	2.0 1)	30,047
2024	69	0	30,706	30,775	2.0	31,303

1) The figure has been adjusted to align with the updated plastics emission factors.

Sustainable raw materials

Increasing the share of recycled and renewable raw materials

Orthex promotes sustainability in all choices made along the life cycle of a product. We only use durable and recyclable raw materials while minimising their use and optimising logistics. Reducing greenhouse gas (GHG) emissions and increased sourcing of recycled and renewable raw materials are at the core of our strategy and sustainability vision.

Our target is to increase the share of used recycled and renewable raw materials in our production to 80% by 2030. In 2024, this share (used kg) increased to 16.6% (2023: 15.8%). In addition, the growth in sales of products made from recycled and renewable materials was three times faster than the overall net sales growth. The growth was due to the fact that we have launched several new products made from recycled plastic in 2023 and 2024 and have switched to using ISCC PLUS certified, renewable, and recycled raw materials produced by applying the mass balance approach in several product ranges.

Renewable raw materials

Plastics made from renewable raw materials, also often called biobased, reduce our dependency on limited fossil resources and have a significantly smaller carbon footprint than fossil-based plastics.

We currently use three renewable raw materials for our GastroMaxTM BIO products: wood fibre, sugarcane, and castor oil. All these products have OK Biobased certifications, which assures the share of bio-based raw materials in the products. We buy the renewable raw materials from reliable suppliers who we have long relationship with and require that the raw materials have applicable certificates.

Recycled raw materials

The carbon footprint of products made with recycled content is lower than that of products made with conventional plastic. We have used recycled plastic in our production since the 1990s and currently, a prerequisite for all new product investments is that the material should be either recycled or renewable. We are proud to be able to say that all our SmartStoreTM novelties launched in 2024 are made of durable recycled plastic.

Our SmartStore™ Recycled product range which is made with recycled plastic is certified according to the Blue Angel ecolabel which sets strict standards for environmentally friendly products and services.

The carbon footprint of products made with recycled content is reduced by up to 60%.

CIRCULATE YOUR FOOD WASTE WITH SMARTSTORETM COLLECT BIOWASTE

Since the beginning of 2024, requirements for separation of food waste and its storing separately from other waste are increasing in the EU. Analyses of household waste have shown that one-third of the content consists of food or kitchen waste. By separating food and kitchen waste and treating it right, essential resources can be captured and effectively circulated.

So, it makes sense to sort food waste. For this need, we launched the SmartStore™ Collect Biowaste bin for sorting and storing household food waste. By launching this practical food waste caddy, we wanted to make food waste separation effortless and consumers' everyday life easier.

Just like the other sorting solutions in the Collect family, this novelty earned recognitions in various competitions. The SmartStore™ Collect Biowaste was awarded with "Winner" at the German Design Awards 2024 for its stylish and practical design in the category "Eco Design". In addition, the container was shortlisted for the Excellence in Housewares Awards 2024 in the Excellence in Home Organisation category.

With its sleek Nordic design, SmartStore™ Collect Biowaste fits beautifully on any kitchen counter. Crafted from sustainable recycled plastics in our factory in Finland, it's a perfect blend of form and function. Thanks to its compact design, the product fits well even in smaller kitchens.

Orthex was among the first consumer goods companies in the world to start using plastic packaging recycled by consumers as raw material for new products in 2017, as soon as technology allowed it. Today, this plastic comes from EuCertPlast-certified suppliers in Europe. The EuCertPlast certification (European Certification of Plastics Recycling) is designed to ensure the traceability and transparency of recycled plastics in the European market. It verifies the quality and sustainability of plastic recycling processes.

We also use recycled plastic from industrial sources.

This material originates from reliable EuCertPlast certified suppliers as well. The suppliers make the raw material by collecting post-industrial plastic waste from various sources, and the mix may vary. Postindustrial plastic waste is generated for example in industrial packaging, injection moulding, thermoforming, plastic manufacturing, and industrial processing.

All our products are recyclable.

The plastic in our products can be recycled approximately 10 times. In practice, however, recycled plastic is always a mixture of plastics of different ages, some of which have been recycled more often than others. This means that while a certain part of the plastic mass can be recycled ten times, the product as a whole can be recycled almost indefinitely.

Mass balance approach to drive the change

As transparent plastic and food contact with plastic are still difficult or even impossible to achieve with recycled plastic, we have started to use renewable raw materials by applying a mass balance approach in our products to make it possible for us to offer consumers more sustainable products. The mass balance approach means that recycled and renewable materials are mixed with fossil materials in the raw material production process as presented in the illustration below. This reduces the amount of fossil-based plastic in the world.

In 2024, the ISCC PLUS certificates of Orthex's Lohja and Gnosjö factories were renewed. This allowed us to continue the usage of recycled and renewable raw materials produced by applying the mass balance approach. We are using renewable raw materials produced by applying mass balance approach for example in the production of our popular SmartStore™ Compact and Compact Clear storage boxes. Each product has on average at least 20% of renewable or recycled raw material allocated to it, according to the mass balance approach.

In addition, we extended the usage of ISCC PLUS certified renewable raw materials into SmartStore™ Sustain food containers. These products are made with 80% of bio-based plastic. The bio-based content is allocated to the products by applying the mass balance approach.

ISCC PLUS certified mass balance approach

Mass balance approach is a method to document and track renewable and/or recycled content throughout complex manufacturing systems to the end product.

Investing in the research of sustainable raw materials

We invest in research to find new methods and raw materials

We want to provide consumers with the opportunity to choose more environmentally friendly products and we invest in research to find new methods and raw material solutions. Orthex is involved in three significant research projects. The goals of the projects are to increase the use of recycled and renewable plastics, and to promote circular economy. In line with Orthex's sustainability strategy, the projects support our 2030 carbon neutrality target and the target to increase the use of sustainable raw materials.

Orthex launched a significant research project for the development of future recycled plastic products in September 2022. The project is carried out in cooperation with partners, and it will continue until the end of 2025. The goals of the project are to build an ecosystem aimed at increasing the use of recycled plastic and to generate new information about the use of recycled plastic in different applications, especially in products suitable for food contact. The results of the product development and tests have been encouraging and indicated that recycled plastic is, at least in principle, suitable for food contact. However, starting profitable industrial scale production would, among others, require further development of sorting technology and amendments to regulations governing the use of recycled plastic. The project is part of the extensive and pioneering Borealis SPIRIT (Sustainable Plastics Industry Transformation) program supported by Business Finland, which aims to transform the plastics industry towards a more sustainable future.

ORTHEX RESEARCH PROJECTS IN SHORT

Food-safe recycled plastic: Together with Fortum and other partners in the Borealis SPIRIT program, Orthex is investigating whether recycled plastic can be used in products suitable for food contact, expanding possibilities to use sustainable materials. Project Engineer Unna Paavolainen from Orthex presented the test results of this project at the annual SPIRIT event.

PlastLIFE SIP-EU: As part of this seven-year collaborative project, Orthex is working to identify and test new environmentally friendly plastic raw materials, aiming to bring pioneering products to market.

Reusify project: Focusing on reducing single-use packaging, Reusify explores how packaging reuse systems could function. Orthex goal in this project is to find solutions for replacing the singleuse products with reusable food storage and delivery boxes in professional kitchens.

Transforming the plastics industry towards a more sustainable future.

Since January 2023, Orthex participates in a large cooperation project of seven years to promote the circular economy of plastics. The PlastLIFE SIP-EU project piloted by the Ministry of the Environment and the Finnish Environment Institute (SYKE) is part of the EU's LIFE program. As part of the PlastLIFE SIP-EU project, the goal of Orthex's work package is to find new potential, environmentally friendly plastic raw materials, test raw materials in production and as finished products, and then bring new products to the market. Examples of novelties launched by Orthex as results of this work are the SmartStoreTM Bedroller and SmartStoreTM Stack-it sorting solution, which are manufactured using new recycled plastic raw materials.

Orthex is also involved in the Reusify project that started in 2024 and aims to reduce single-use packaging. The project includes several different stakeholders, as cooperation across the entire value chain is a prerequisite for a circular economy. The goal of the project is to increase the reuse of packaging by generating new knowledge and expertise on how reuse could be implemented and what kind of system it would require.

REUSIFY PROJECT AIMS TO REDUCE SINGLE-USE PACKAGING

Orthex is a participant in the Reusify project, which started in 2024. The project aims to reduce single-use packaging by developing reusable packaging systems. Orthex goal in this project is to find solutions for replacing the single-use products with reusable food storage and delivery boxes in professional kitchens.

The project focuses on creating new knowledge and expertise on how to implement reusable packaging systems. It includes exploring various reuse dimensions, such as ecosystems, business models, circular packaging solutions, and sustainability scenarios. The research will also analyse consumer experience and acceptance.

The Reusify project aims to generate new knowledge and expertise about the introduction of packaging systems that enable reuse, and thereby new export opportunities for Finnish industry participants. The initiative is expected to contribute significantly to the circular economy by reducing the use of fossil-based packaging materials and addressing packaging waste challenges.

The Reusify project is two and a half years long co-innovation research initiative led by VTT Technical Research Centre of Finland Ltd. and the University of Vaasa, involving 21 stakeholder organisations including Orthex. It is primarily funded by Business Finland. The project is part of the broader Borealis SPIRIT (Sustainable Plastics Industry Transformation) program.

Resource efficiency

Our efficient operations save natural resources

Orthex's operations are resource efficient and have minimal impact on the environment, including local biodiversity. In optimizing resource efficiency, our focus areas are improving energy efficiency and decreasing production waste, or scrap. Our objective is always to save natural and other resources.

Since we use renewable hydropower in all our factories, our energy consumption per kilogram of product continued decreasing in 2024, reflecting improved energy efficiency. The energy used to produce 1 kg of goods has decreased by 9.5% compared to the 2020 average.

Another significant way to improve energy efficiency in our operations is to replace old machines with energy efficient ones. Investments in energy efficient machines have contributed to reducing Orthex's energy consumption significantly as described in the enclosed table. Our energy efficiency target for the period of 2023–2025 is to improve energy efficiency 1% annually (baseline year 2022).

Progress in energy consumption 2020–2024 (kWh/kg)

Year	Outcome	Target
2020	1.131	1.145
2021	1.100	1.106
2022	1.092	1.073
2023	1.025	1.081
2024	1.024	1.070

We optimise our production in a way that minimises the emergence of poor-quality products or production scrap. If scrap is created despite our measures, mainly due to colour or material change during production, we are able to reuse the vast majority of it as raw material elsewhere in production. This effectively eliminates the creation of actual scrap. Our target is to reduce the share of production scrap (cost of scrap products compared to produced volume) to under 1% during 2025 and 2026. In 2024, the scrap rate increased slightly but despite this remained clearly below the set target and was 0.95% (2023: 0.87%).

Progress in reducing production scrap 2020–2024 (cost of scrap products compared to produced volume, %)

Year	Outcome	Target
2020	1.09%	1.50%
2021	0.98%	1.50%
2022	0.96%	1.47%
2023	0.87%	1.45%
2024	0.95%	1.42%

All our factories have closed-loop systems for water use. Our operations use cooling water in their manufacturing processes, and the water is fully recycled in production. No wastewater is created in our operations, and no water is released into nature.

As our products only contain the raw material and colour, we use minimal volumes of chemicals in our production. Some chemicals are used for other purposes, for example for cleaning. We also follow the Substitute It Now (SIN) list to control the chemicals included in the making of our raw materials. The SIN-list is a database of chemicals likely to be restricted or banned in the EU. The purpose of this list is to support organisations in identifying and replacing substances of high concern, based on the criteria defined in REACH, the EU's chemical regulation.

No wastewater is created in our operations, and no water is released into nature.

NEW COLOURS FROM COFFEE RESIDUES

Our GastroMaxTM BIO tableware products needed a facelift with trendy colours, and we wanted to find an innovative solution supporting circular economy. Following many different research efforts and tests, coffee residues and earth minerals were selected as the colour materials for the tableware products.

According to sustainability researcher Gunter Pauli, coffee production generates more than 23 million tons of garbage annually. For consumers, used coffee grounds are the most visible example of this waste, the bit we dump in the bin after making each fresh brew. Following vegetables and fruits, coffee grounds are the most common household food waste.

The coffee grounds used in the colours of our GastroMaxTM BIO tableware are production side streams of coffee cold brewed in Germany. The cold brew coffee extract is used for example in the ready to drink coffee you can find in grocery stores.

Coffee speckles enable consumers to instantly recognize that the items are made of renewable materials. Colours made with coffee waste and minerals also offer novelty value and differentiate our products from the competition. GastroMaxTM BIO plastic products are lightweight, hygienic and robust and just perfect for picnics, barbeques, camping and eating outdoors, and a sustainable substitute for corresponding single-use products.

Biodiversity

Our biodiversity impacts come from our supply chains

Orthex's own operations are resource efficient and have minimal impact on the environment, including local biodiversity. Our indirect biodiversity impacts come from our supply chains, and together with the Finnish Chemical Industry Federation and other member companies we have created long-term, industry-level biodiversity vision, targets, and roadmap. The most significant identified impacts of the chemical industry on biodiversity are associated with raw material supply. These are greenhouse gas emissions, changes in land- and water-use and natural resource use and exploitation.

During 2024, we continued the cooperation with the Finnish Chemical Industry Federation to establish a common approach to measure and track biodiversity impacts within the industry over the years.

Promoting the recycling of plastic

Orthex fully supports the notion that plastic belongs in circulation, not in nature. Plastic is a valuable material and recycling plastic is a responsible act for a sustainable future.

Orthex is part of a value chain that enables the new life of plastic packaging through recycling. We proactively promote the recycling of plastics in our communication channels and various events, while also engaging in dialogue with relevant actors. Orthex also cooperates with its customers to raise awareness on recycling.

In 2024, we took part in "@rinkikierratys" campaign to raise consumer awareness on the importance of plastic recycling.

Social: Safe workplace and tested products

Caring for our people

It is our responsibility to ensure that everyone feels safe and motivated at work, enjoys their workplace, and can contribute through continuous improvement. We do this by managing our occupational health and safety risks, taking preventive measures, educating employees, and continuously evaluating and improving our work. Leadership, commitment, and engaged employees are key factors for us to succeed in this area and in general. We follow up on our progress in monthly and annual reports and meetings.

Occupational safety

Orthex promotes a zero-accident vision and culture. We want to ensure that all our employees have a safe workplace every day. Our focus is on preventing safety incidents, which is why we encourage our employees to report any near-misses, unsafe practices, or other safety observations. All reports are carefully analysed, and actions are carried out to prevent similar situations from re-occurring in the future.

To ensure the safe use of chemicals, we provide our employees with bulletins that define the hazard level of the chemical and include relevant instructions for use and protective gear. Our Supplier Code of Conduct also requires our suppliers to ensure a safe and healthy working environment for their employees.

Orthex's operations are audited with ISO 45001 certification for occupational health and safety (OHS). The certificate provides requirements for and guidance on an OHS management system. The goal is to enable organisations to provide safe and healthy workplaces by preventing work-related injuries and health issues, and to help improve their OHS performance.

In addition, our Lohja factory underwent its first SMETA audit and our Tingsryd factory was evaluated for the second time in 2024. Both sites were thoroughly assessed on occupational health and safety, working conditions, environmental performance, and business practices. External audits like SMETA – the world's most widely used ethical trade audit – help us identify potential areas for continuous improvement, ensuring that we maintain the highest standards in all aspects of our operations.

Our safety at work KPI is Lost-Time Incident Frequency (LTIF). This KPI allows us to benchmark our safety performance, since it is widely used in peer companies. We defined our LTIF target for the year 2024 regarding the entire personnel as less than 10 incidents per million work hours. This figure is clearly below the average LTIF rate in Finnish industry. In 2024, our employees' LTIF rate unfortunately went up and was 10.5 (2023: 6). Fortunately, the incidents were not serious.

Health and well-being

We believe that the health and well-being of our employees form an important part of their working ability. To ensure this, Orthex offers its employees high-quality, employer-provided occupational health care. We also promote an early support model that aims to prevent and early detect any negative developments regarding employee health, safety, and well-being. The model enables managers to provide adequate and timely support to employees and to promote dialogue as part of the company culture.

We measure health and well-being of our factory employees with a key performance indicator for sickness absence rate (% of total theoretical working hours). The target for this indicator is to reach the level of below 5%. In 2024, sickness absences decreased to 5.2% (2023: 6.1%). It is a top priority for us to ensure the health and safety of our employees and they are instructed to stay at home with the slightest symptoms of an illness. We also continue hybrid working practices where remote and in-office days vary depending on the needs.

Human resources

In human resources, we focus on developing an organisation with highly motivated and skilled employees and competent leadership, while enabling continuous improvement for all. Orthex's performance management and development process is a key element in guiding employee performance and development. All managers are evaluated by their teams annually, and all employees are provided with a structured way of giving and receiving feedback. This helps ensure that everyone has an opportunity to influence their personal development.

Our annual employee surveys and their follow-up surveys are important elements of people management at Orthex. The annual employee survey focuses on the following topics: engagement, leadership, team efficiency, organisational and social work environment, and management. The employee survey's response rate was again excellent at 98% (2023: 98%).

We measure our employee satisfaction with the KPI Engagement Index, and we have set a target to improve annually. The relationship between engagement and profitability of the organisation is well established. Based on the responses to eight questions related to motivation and commitment, our employees' Engagement Index improved and was 81/100 in 2024 (2023: 79/100).

Employee survey helps to identify employee strengths and areas of improvement. Each team discussed the results of the survey and agreed on plans for development actions with regular follow-up of results and implementation.

Employee feedback helps us build a safe and motivating workplace.

Diversity and inclusion

We promote equality and do not tolerate discrimination in any form. Our employees have the freedom to organise themselves, and we respect trade unions and personnel representatives and engage in open dialogue with them. Our employee survey confirms that our employees feel that people are treated fairly at work, regardless of sex, age, or cultural background and that everyone can express themselves freely and safely and feel part of a greater context.

Orthex had 312 employees at the year-end, which is slightly less than at the end of 2023 (318). The distribution of employees by functions and gender is described in the enclosed graphs. Regarding these, the most significant change in 2024 occurred in the Management Team, where the proportion of women rose from 25% to 33%.

Continuous improvement

We operate an internal reporting system for employees' development proposals, reports of deviations, incidents and accidents including close calls. Each proposal and report are evaluated and documented. Based on these employee observations, we have done numerous improvements in, for example, our ways of working, work environment, and safety equipment. Our target is to have each production and warehouse site employee submit at least one development proposal annually. In 2024, we got 224 development proposals which is clearly more than in 2023 (148) but we still didn't quite reach our target. In 2025, we will be even more active in communicating to our employees about the importance of submitting development proposals.

Product safety

We ensure our products are safe to use

Product safety is a top priority for Orthex. We take great pride in offering products that are manufactured with safe, high-quality raw materials that make them durable, functional, and safe to use. We comply with all relevant product safety regulations and guidelines, such as the EU's General Product Safety Regulation regarding consumer goods, the Regulation of good practices in food contact material operations, and the Regulation on plastic materials and articles in contact with food.

All our products made from conventional plastic are free of Bisphenol A (BPA) and phthalates. Recycled plastic is also tested and safe, but as it originates from multiple plastic products, it cannot be used in foodcontact products.

Regulation on recycled plastics material which entered into force in 2022 aims to increase the use of recycled plastic material in food contact materials while ensuring the safety of recycled plastic. Recycled plastic materials and articles intended to come into contact with food must be both chemically and microbiologically safe. We follow closely developments in this area and are constantly looking for new and safe raw material sources for recycled plastic. The European Food Safety Authority's approval process for registering a new recycled raw material intended for food contact is a long-term process that requires a lot of raw material testing, process validation and other verification of the functionality of the process and that the recycled raw material is completely safe to use in food contact.

Around 90% of Orthex's products are manufactured at our factories in Finland and Sweden. The remaining 10% are manufactured by carefully selected suppliers, mainly in the Far East. We only work with big, reliable suppliers that follow all regulations for food contact materials and test their raw materials. For more information about how we work with our suppliers, see section Responsible sourcing.

Product safety is a top priority for Orthex.

Food contact products

We follow all EU regulations concerning food contact products. All these products are carefully tested on a regular basis in independent, accredited laboratories to ensure product safety. For example, our lunch boxes undergo heat resistance testing to ensure that no substances are released into food during heating. We specify these details in our product-specific Declarations of Compliance. In addition, symbols on our products and their packaging present which temperatures the product endures and whether it is safe to use in, for example, the microwave, fridge, or dishwasher. For more information about our product symbols, visit www.orthexgroup.com.

Customer satisfaction

We help our customers achieve their sustainability targets

Orthex serves various retail customers, such as traditional convenience stores, specialty and hardware retailers, online stores, and department stores. Consumers – the customers of our customers – are another important stakeholder group to us. We believe that satisfied customers and consumers will lead to a healthy and growing business. We work hard to meet or exceed the expectations of our customers and consumers, and we seek to be the preferred value-creating partner to our customers. As we increase the share of renewable and recycled raw materials in our production and proceed towards carbon neutrality, we can further support our customers in achieving their own sustainability targets.

We actively participate in the sustainability work of our customers and provide data and information for them so that they can use it in their calculations and target setting.

The vast majority of our products are manufactured in Finland and Sweden, which means that the distance to our core markets – the Nordic countries and Europe – is short. This enables us to react to customer needs in a timely manner and with less tiers in the customer's supply chain. Our warehouse in Germany increases the efficiency of our logistics in Europe.

We measure customer satisfaction with a survey every second year. The latest survey was conducted in 2023 when we improved our customer satisfaction rate to 4.08 (2021: 3.93), on a scale from 1 to 5. Orthex customers were also asked to rate Orthex as a forerunner in sustainability and the rate improved to 4.22 (2021: 3.88).

SMARTSTORETM TRUCK ROLLS AROUND EUROPE

We seek to be the preferred value-creating partner to our customers and successful in-store concepts are one example of adding value.

Our SmartStoreTM truck has been a great success among our customers and consumers, and it is rolling out through Europe and hundreds of stores. The trucks are loaded with our iconic SmartStoreTM Classic storage boxes. SmartStoreTM Classic is one of our best-selling products and it is a perfect durable box for various storing and organising purposes at home, or in the office, storage room, summer cottage or garage.

At Orthex, we believe in the power of great visibility. As a leading manufacturer of household products, we know that most purchase and brand decisions happen on the spot, whether in stores or online. Just during 2024, we set up over 500 SmartStoreTM campaign trucks together with major retail chains in the Nordics and elsewhere in Europe. The truck campaigns boosted the storage box sales in these stores.

We are committed to helping our customers create outstanding store presentations. From planning to execution, we collaborate with retailers to design concepts that enhance product visibility and make it easy for consumers to find and choose the right products for their needs.

Sustainability Governance: Part of everyday work

Orthex's sustainability strategy is confirmed annually for a threeyear period including the company's key sustainability topics in environmental, social and governance (ESG) areas. Key performance indicators and targets are defined for each topic.

Sustainability work is led by the Board of Directors, the CEO, and the Management Team. The Board of Directors approves the company's sustainability strategy and annually set sustainability targets and monitors performance against the targets. The Management Team reviews the company's most important sustainability indicators monthly, and all indicators once a year. Progress in sustainability is part of the CEO's incentive plan (read more in the Remuneration Report 2024) and the Management Team members' incentive plan.

The everyday sustainability work at Orthex is integrated into all operations and functions. Orthex's sustainability strategy is executed by a dedicated team which monitors the progress of the set sustainability targets. The team is led by the Chief Marketing and Sustainability Officer (CMSO) and Chief Supply Officer (CSO) who report directly to the CEO and are members of the Management Team. The team includes our ESG Advisor and representatives of our quality functions and, through the CMSO and CSO, covers production, procurement, marketing, sustainability, product development, and commercial functions. The ESG Advisor is responsible for the development of the company's sustainability strategy and for coordinating and implementing sustainability initiatives in line with the sustainability strategy.

We have a dedicated team that is monitoring the progress of set sustainability targets.

Orthex's key sustainability-related policies and principles are:

• Orthex Code of Conduct
• Supplier Code of Conduct
• Anti-Corruption Policy
• Equal Rights & Opportunities Policy
• Quality, Environmental and Safety Policy
• Purchase Policy
• HR Policy

Sustainability-related risks

Orthex's risk management policy classifies risks into three groups: strategic, operational, and financial risks. Orthex assesses ESG risks as part of systematic risk management process. Sustainability-related risks are typically covered under operational risks, where we review circumstances or events that can cause harm to people, property, business, information, or the environment.

The responsibility for implementing risk management lies with the Management Team, and we strive to ensure that each employee understands and can control risks within their operational environment and responsibilities. We do this by, for example, implementing our Code of Conduct (business ethics risks) and ISO 45001-certified management system (occupational safety risks). Our employees also receive regular training in cyber security, and annual competition law training is provided for employees in contact with our customers and suppliers.

Stakeholder analysis

Our annual organisation-wide stakeholder analysis includes mapping of our key focus groups in upstream and downstream value chain and identification of the most significant stakeholders within these groups. Our key focus groups include for example our A and B level suppliers, customers and consumers. We define our influence on the stakeholders and their interests and evaluate each stakeholder's importance to us and our interests. Based on this, we assess potential risks and opportunities related to the most significant stakeholders in our value chains.

Read more about our risk management and ESG risks in the Board of Directors' report for the year 2024.

Ethics and integrity

We aim to go beyond compliance

Orthex operates internationally, and we strive to comply with all laws and regulations applicable to our operations. However, our way to conduct business goes beyond that: high ethical standards and integrity are present in everything we do. Everyone at Orthex has a role in ensuring that the company operates in an ethical and responsible manner, regardless of the situation. We train and educate our employees to ensure that everyone understands what ethical behaviour is and how to demonstrate it.

Orthex Code of Conduct applies to all our employees, and members of the Management Team and the Board of Directors. The Code of Conduct defines the key principles for how we engage in business, treat each other, and safeguard Orthex's assets. It is a tool that helps recognise ethical dilemmas and presents ways to solve them. Our employees are encouraged to report any breaches of the Code of Conduct to their supervisors or through Orthex's whistleblowing channel. Our KPI related to ethical business practices is the share of employees committed to Orthex Code of Conduct, and the target is 100%. In 2024, we achieved this target (2023: 100%).

To promote accountability and foster a responsible company culture, we have an internally operated whistleblowing channel. The channel is open to all internal and external stakeholders and can be used anonymously. Employees can use the channel via the company's intranet pages and other stakeholders through the company's website (Whistleblowing - Orthex Group). The employees and other stakeholders may use the channel to report suspected non-compliance with Orthex's Code of Conduct or Supplier Code of Conduct; breaches of legislation; or other regulations or guidelines. Such non-compliance may include, for example, approval of a gift against guidelines, fraud, forgery, conflicts of interest, or inappropriate behaviour by a colleague or partner.

When Orthex receives a report on a suspected misconduct or non-compliance, the matter is first investigated by the CEO and the respective member of the Management Team. After processing the report, the CEO determines potential further actions, which can be corrective or disciplinary. The whistleblowing reports are always processed in confidence, and the whistleblower, their personal data, and the subject of the report are always protected in accordance with the applicable whistleblower protection, data protection and information security laws. We did not receive any reports through the whistleblowing channel in 2024 nor the previous year.

Orthex's way to conduct business goes beyond complying with laws and regulations.

Responsible sourcing

We have strict sustainability requirements for our suppliers

Orthex procures its raw materials mainly from European suppliers. Only slightly more than one percent of the raw materials used by the company come from elsewhere than the EU area or Great Britain. Our suppliers are key partners for us in controlling and developing the sustainability of our value chain. We aim for active engagement with and continuous evaluation of our suppliers. In the evaluation process we take into account sustainability, cost efficiency, innovation skills, risk management, and other opportunities. Sustainability is at the core of our business and that drives us to find alternative and more sustainable solutions. Elements of more sustainable solutions are defined by category. Main target is to reduce CO2 emissions and improve resource and energy efficiency.

Supplier Code of Conduct

Our Supplier Code of Conduct (SCoC) presents Orthex's sustainability requirements for suppliers. Our suppliers must either commit to our Supplier Code of Conduct or present their own code of conduct with similar or stricter sustainability requirements compared to those in our SCoC. Our target is that all our A and B classified suppliers must align with Orthex Supplier Code of Conduct, and we achieved this target in 2024 (2023: 88%).

If our audits or evaluations reveal non-compliance with our SCoC, we require the supplier to take corrective action and remedy any adverse impacts on people or the environment, as well as ensure the prevention of similar issues taking place in the future. The supplier is given

a timeframe to complete the agreed actions. If the supplier is unable to take corrective, remedial, or preventative measures on its own, we will support in developing and implementing an action plan.

If the supplier is unwilling to take corrective action, or there are repeated and serious breaches of our SCoC, Orthex has the right to end the business relationship. Orthex will not conduct any business with a supplier engaged in violations of fundamental human rights, and we will immediately terminate the business relationship with a supplier that commit such violations. These zero-tolerance practices are listed in our SCoC.

In addition to engaging with our suppliers directly, we are a member of amfori BSCI, a platform that enables companies to improve visibility over the social performance of their supply chain. In countries that we have determined high-risk, we monitor compliance with our SCoC in the supply chain through amfori BSCI which carries out on-site inspections, audits, and periodic self-evaluations of suppliers and their sub-contractors. Orthex has been a member of amfori BSCI since 2018 and we follow the share of suppliers that are amfori BSCI members (in risk countries) and represent 90% of purchase value. The target is to cover 100% of these suppliers. We didn't reach that target in 2024: the result was 88% (2023: 100%). In recent years, we have significantly reduced purchases from risk countries, and as a result, new, smaller suppliers have risen to 90% of the purchase value. Our goal is to have these suppliers also become members of amfori BSCI during 2025.

Transparent reporting and commitment

We consider transparent reporting of our environmental, social and governance (ESG) impacts and efforts an important part of how we do business. We receive an increased number of various ESG related questions and requests from our stakeholders, especially from customers and investors, and we seek to increase transparency and provide reliable data on material sustainability topics. Orthex reports on its sustainability efforts every year as a part of its Annual and Sustainability Reports and monitors closely any applicable reporting requirements. In addition, Orthex contributes to several third-party sustainability reports and commitments.

In 2024, Orthex continued its preparations for the entry into force of the Corporate Sustainability Reporting Directive (CSRD). The new reporting requirements were expected to apply to the company starting from the beginning of 2025. However, changes to these reporting requirements have been proposed within the EU, which may result in the company being exempt from these requirements due to its size. We are closely monitoring the progress of the regulatory changes and their potential impacts on the company's reporting obligations.

Circular Economy Green Deal commitment

In 2024, Orthex joined the Circular Economy Green Deal. The Circular Economy Green Deal is a voluntary commitment in which the participating organisations commit to reducing their use of natural resources and setting effective goals, and to taking actions that promote a low-carbon circular economy. The commitments aim to reduce the use of raw materials, extend the useful life of materials and products, increase the supply of options that cause less burden on the environment and strengthen the natural capital, and develop new

operational and business models that are in line with a circular economy. The joining organisations show leadership in promoting a circular economy and gain opportunities for networking and developing cooperation with other stakeholders that aim for a circular economy.

Orthex joined the Circular Economy Green Deal.

Orthex's commitment relates to action areas "Increasing the value of recycled materials and bio-based raw materials in production" and "Expanding the availability of circular economy products in the market". We are committed to using recycled and renewable raw materials in the manufacture of our products, as our goal is to replace virgin raw materials in our production with recycled and renewable raw materials and to introduce plastic products made from recycled or renewable materials to the market.

CDP

Orthex reports on risk management and management practices related to climate change in Climate Disclosure Project's (CDP) climate change program annually. CDP is a non-profit organisation that runs the global disclosure system for investors, companies, cities, and states to manage their environmental impacts. Our target is to reach at least the Management level with the score B in CDP reporting. Outcome of the 2023 CDP reporting was disclosed in February 2024 and Orthex reached the highest Leadership level with a score A-. Outcome of the 2024 CDP reporting is still pending.

EcoVadis

In 2024, Orthex participated for the second time in the EcoVadis ESG assessment and was awarded with a bronze medal for sustainability performance (2023: silver). The assessment results places Orthex among the top 22 percent of over 90,000 companies globally assessed by EcoVadis.

Nasdaq ESG Transparency Partner

Orthex is certified Nasdaq ESG Transparency Partner. This certification is used by Nasdaq to show engagement in the market transparency and raising environmental standards. Sustainability is a core element in Orthex's strategy and with this reporting to Nasdaq's ESG Data Portal we want to provide quantifiable data on environmental, social and governance issues to investors and other stakeholders.

ANNUAL REVIEW SUSTAINABILITY GOVERNANCE FINANCIAL REVIEW

GOVERNANCE

Annual and Sustainability Report 2024 43

ANNUAL REVIEW SUSTAINABILITY GOVERNANCE FINANCIAL REVIEW

CORPORATE GOVERNANCE STATEMENT 2024

Orthex Corporation ("Orthex" or "the company") is a public limited liability company listed on Nasdaq Helsinki Ltd and headquartered in Espoo, Finland. The company's corporate governance complies with the company's Articles of Association and Corporate Governance Principles as well as rules and regulations applicable to Finnish listed companies such as the Finnish Limited Liability Companies Act ("Companies Act") and Securities Markets Act, and rules and regulations of Nasdaq Helsinki Ltd. The company also adheres to the Finnish Corporate Governance Code 2025 ("CG Code") issued by the Securities Market Association. The CG Code is available on the association's website (www.cgfinland.fi).

This Corporate Governance Statement is issued as a separate statement from the Board of Directors' report, but it is published simultaneously with the Board of Directors' report and with the company's financial statements, sustainability report, and the remuneration report for the year 2024 on the corporate website at www.investors.orthexgroup.com. As the company has no audit committee, the company's Board of Directors has reviewed the Corporate Governance Statement.

Governing bodies

The Annual General Meeting, the Board of Directors and the CEO are responsible for the governance of Orthex. The company's shareholders exercise the highest decision-making power at the general meeting of shareholders. The Shareholders' Nomination Board prepares proposal for the composition of the Board of Directors to the Annual General Meeting.

Governance structure of Orthex Corporation

The Annual General Meeting elects the members of the Board of Directors. The company is managed by the Board of Directors and the CEO, appointed by the Board of Directors. The company's Management Team assists the CEO in the operative management of the company. The members of the Management Team are appointed by the Board of Directors together with the CEO.

General Meeting of Shareholders

The General Meeting of Shareholders is the ultimate decision-making body of the company. At the General Meeting of Shareholders, shareholders exercise their powers in accordance with the Companies Act and the Articles of Association. The General Meeting of Shareholders decides on matters that under the Companies Act and the Articles of Association are within its purview. Annual General Meeting of Shareholders is convened by the Board of Directors annually and it is held within six months from the end of the previous financial year. An Extraordinary Meeting of Shareholders may be convened as stipulated in the Companies Act. Matters on which the Annual General Meeting decides include the adoption of the financial statements, distribution of profits, discharge from liability, and election of the members of the Board of Directors and the auditor, as well as their remuneration. Decisions to amend the Articles of Association are also taken by the General Meeting of Shareholders.

Annual General Meeting 2024

Orthex Corporation's Annual General Meeting was held in Espoo on 9 April 2024. The general meeting adopted the financial statements and discharged the members of the Board of Directors and the CEO from liability for the financial year 2023. The general meeting also approved the 2023 remuneration report for the governing bodies.

The general meeting approved the Board of Directors' proposal to pay a dividend of EUR 0.21 per share. The dividend was paid in two instalments. The first instalment of EUR 0.11 per share was paid on 18 April 2024. The second instalment of EUR 0.10 per share was paid on 9 October 2024.

The general meeting resolved that Sanna Suvanto-Harsaae, Markus Hellström, Jyrki Mäki-Kala, Jens-Peter Poulsen and Anette Rosengren be re-elected to the Board, all for a term of office ending at the end of the next Annual General Meeting. Sanna Suvanto-Harsaae continues to chair Orthex Board of Directors. The members of the Board of Directors are independent of the company and its significant shareholders.

In the autumn of 2024, the number of members of Orthex's Board of Directors decreased to four as Jens-Peter Poulsen announced his resignation from the Board as of the end of October.

As to Board remuneration, the general meeting resolved that the remuneration of the members of the Board of Directors remain the same and that the Chair of the Board of Directors be paid a monthly fee of EUR 4,000 and other members of the Board of Directors a monthly fee of EUR 2,000.

Ernst & Young Oy, a firm of Authorised Public Accountants, was reelected the company's auditor for a term of office ending at the end of the next Annual General Meeting. As announced by Ernst & Young Oy, APA Mikko Rytilahti continues as the signing audit partner. The remuneration of the auditor was resolved to be paid according to a reasonable invoice approved by the Board.

The general meeting also authorised the Board of Directors to issue or convey a total maximum of 1,600,000 new shares and special rights entitling to shares in one or several issues and to acquire a maximum of 175,000 shares in the company. The authorisations will be valid until 30 June 2025.

Further information about the decisions of the general meeting can be found in the AGM documents, which are available on the corporate website at Annual General Meeting 2024 – Orthex Group.

ANNUAL REVIEW SUSTAINABILITY GOVERNANCE FINANCIAL REVIEW

The Board of Directors

Under the company's Articles of Association, the Board of Directors is composed of a minimum of four and a maximum of eight members. Members of the Board of Directors are elected at the general meeting. The term of office of a member of the Board of Directors commences from the close of the general meeting in which they are elected and expires at the close of the following annual general meeting. The Board of Directors elects a chair from among its members.

Jens-Peter Poulsen, member of Orthex's Board of Directors since 2021, announced his resignation from the Board as of 31 October 2024. Mr Poulsen was appointed to a new, time-consuming full-time position; hence he decided to resign from the Board. Following his resignation, the Board of Directors of Orthex consist of four members.

The Board of Directors is quorate when more than one-half of its members are present. A decision by the Board of Directors is the opinion supported by more than one-half of the members present at a meeting. In the event of a tie, the Chair of the Board has the casting vote.

The Board of Directors convenes according to a pre-agreed schedule normally from six to ten times a year and holds extra meetings when deemed necessary. Meetings can also take place remotely by using technical means or devices.

The Board evaluates its operations and working methods once a year.

Duties of the Board of Directors

The tasks and responsibilities of the Board of Directors of the company are determined in the Companies Act as well as in other applicable legislation. The Board of Directors has general authority to decide and act in all matters not reserved for other corporate governing bodies by law or under the provisions of the company's Articles of Association. The general task of the Board of Directors is to duly organise Orthex's management and operations. In all situations, the Board of Directors must act in accordance with Orthex's best interest.

The Board of Directors has a written charter that specifies its duties. The duties of the Board of Directors include:

• approving reports of the Board of Directors, financial statements, and interim reports
• seeing to the appropriate organisation of accounts and financial administration
• preparing proposals for the general meeting of shareholders and convening general meetings of shareholders
• approving and confirming strategic guidelines and long-term strategic targets
• approving principles for risk management and internal control
• confirming annual budgets and operating plans
• appointing the CEO and deciding on the terms and conditions of the CEO contract
• deciding on the company structure
• making significant business decisions, such as decisions on mergers and acquisitions, significant contracts, investments, and financing arrangements and
• deciding on other matters falling under the statutory responsibilities of the Board of Directors.

Orthex's Board of Directors has no committees, but the Board may consider setting up potential committees in the future. As there are no committees, the entire Board of Directors is responsible for discharging the statutory duties of the audit committee.

Number of Board meetings and attendance rates

In 2024, the Board held 10 meetings. Some of these meetings were held remotely. Attendance in the meetings is reported in the table below.

Number of Board meetings and members' attendance 2024

Director	Attendance / No of meetings	Attendance rate
Sanna Suvanto-Harsaae (ch.)	10/10	100%
Markus Hellström	10/10	100%
Jyrki Mäki-Kala	10/10	100%
Jens-Peter Poulsen 1)	8/8	100%
Anette Rosengren	10/10	100%

1) Resigned from the Board 31 Oct. 2024.

Diversity of the Board of Directors

Orthex regards diversity as an important and natural approach in its operations. Diversity shall be part of such cooperative and functional Board of Directors which is able to respond to the requirements set out in the company's business and strategic objectives. Such Board of Directors will also be able to support and challenge the company's operative management in a proactive and constructive manner. The principles concerning the diversity of the Board of Directors are in line with this premise.

When preparing the composition of the Board of Directors of Orthex, attention is paid to the requirements set by the company's Articles of Association and the Corporate Governance Code, as well as to the requirements set by the company's operations and the premises of diversity derived therefrom.

Significant factors concerning the composition of the Board of Directors include mutually complementary variety of competences, education and experience in different areas and professional fields and in management and business operations existing in different development phases, as well as the personal capabilities of each member, all of which add to the diversity of the Board of Directors. Diversity is considered not only from the aspect of gender but also from other factors promoting the Board's diversity, such as the age structure of the Board, the members' educational and professional background, their experience relevant for the position, and personal characteristics. When preparing the composition, it is also assessed how the members' skills, education and experience complement each other. The company's long-term needs are also considered.

The purpose of the diversity principles is to contribute to making sure that the Board of Directors' combined competence and experience and the diversity of its composition are sufficiently aligned with Orthex's operational needs. With regard to gender structure, the objective is that there is a balanced representation of different genders in the Board.

The Nordic Business Diversity Index examines the diversity of senior leadership in Nordic listed companies. In 2024, Orthex was ranked sixth among small-cap companies in the Helsinki Nasdaq category and seventh in 2025. The 2025 Index analysed senior leadership in more than 840 companies across Finland, Sweden, Denmark, Norway, and Iceland. Leadership diversity was assessed across four key aspects: gender, age, nationality, and education.

At year-end 2024, the company's Board of Directors comprised four members. Diversity of the Board of Directors with respect to gender, nationality, age, tenure as well as educational and professional background is described on this and on the next two pages. Additional information for example on the Board members' previous positions of trust is available on the corporate website at Board of Directors - Orthex Group.

Members of the Board of Directors on 31 December 2024

Sanna Suvanto-Harsaae

Chair of the Board of Directors since 2021, member since 2020

Born 1966 Finnish and Danish citizen Bachelor's degree in economics Independent of the company and its significant shareholders

Main occupation: Professional director

• Awardit AB, Chair of the Board of Directors since 2024
• Finnair Plc, Chair of the Board of Directors since 2023
• N'Age A/S, Chair of the Board of Directors since 2023
• Posti Group Corporation, Chair of the Board of Directors since 2020
• BoConcept A/S, Chair of the Board of Directors since 2016
• Nordic Pet Care Group A/S, Chair of the Board of Directors since 2012
• CEPOS (Center for Political Studies), member of the Board of Directors since 2017

Markus Hellström Member of the Board of Directors since 2022

Born 1974 Finnish citizen Master's degree in engineering Independent of the company and its significant shareholders

Main occupation: Managing Director of Oy Snellman Ab since 2023

• Fazer Group, Executive Vice President, and Managing Director of Fazer Confectionery Ltd. 2020–2023
• Fazer Bakeries Finland, Country Manager and Fazer Bakeries Ltd., Managing Director 2014–2020
• Fazer Bakeries Ltd., Vice President, Head of Operations, Bakery Business Unit 2013–2014
• Fazer Bakeries Ltd., Business Development Director / Business Controller 2007–2012
• Fazer Group, Sourcing Manager for Logistics Services 2004–2007
• Logico Solutions, Partner 2003–2004
• Candyking, Sweden, Logistics Manager 2000–2003

Jyrki Mäki-Kala Member of the Board of Directors since 2022

Born 1961 Finnish citizen Master's degree in economics Independent of the company and its significant shareholders

Main occupation: Professional director

• Neste Corporation, Chief Financial Officer, and member of Executive Committee 2013–2022
• Kemira Oyj, Chief Financial Officer 2008–2013
• Kemira Pulp & Paper, Vice President, and President positions 2005–2008
• Nokia Chemicals/Finnish Chemicals Oy, Director, and Vice President positions 1988–2005
• Anora Group Plc, Vice-Chair of the Board of Directors since 2023 and member of the Board and Chair of the Audit Committee since 2020
• Outokumpu Corporation, member of the Board of Directors and Chair of the Audit Committee since 2023

Anette Rosengren

Member of the Board of Directors since 2023

Born 1966

Swedish citizen Bachelor's degree in business administration Independent of the company and its significant shareholders

Main occupation: Managing Director of Philip Morris / Swedish Match Nordics since 2019

• Fazer Bakery (Sweden), Managing Director 2015–2018
• Lantmännen Doggy, CEO 2012–2015
• Lantmännen Group, SVP, Head of CF Communication, Sustainability and R&D 2008–2012
• Kraft Foods, Director, Strategic Development and Marketing, Nordic 2005–2008
• Kraft Foods (Austria), VP Category Development, EEMA region 2004–2005
• Kraft Foods (USA), Director, Marketing Service, International 2002–2004
• Kraft Foods (Nordic), marketing and commercial roles 1995–2002
• Unilever, marketing and commercial roles 1989–1995
• Greenfood AB (publ), member of the Board of Directors since 2016

Shareholdings of the members of the Board of Directors

The shareholdings of the members of the Board of Directors and their closely associated persons, as at the end of 2024, are presented in the table below. None of the members of the Board of Directors nor their closely associated persons or entities has any share-based rights in Orthex or its subsidiaries.

Board of Directors' shareholdings

Director	Position	Number of shares on 31 Dec 2024
Sanna Suvanto-Harsaae	chair	8,515
Markus Hellström	member	3,640 1)
Jyrki Mäki-Kala	member	2,010
Anette Rosengren	member	2,000
Total		16,165
% of total shares		0.1%
Orthex total number of shares		17,758,854

1) including shares of closely associated persons

Shareholders' Nomination Board

Orthex Corporation's Extraordinary General Meeting on 5 March 2021 decided to establish a Shareholders' Nomination Board. The Nomination Board annually prepares proposals for the election and remuneration of members of the Board of Directors to the Annual General Meeting. It is also the duty of the Nomination Board to search for new director candidates.

The Extraordinary General Meeting adopted a Charter of the Shareholders' Nomination Board, which governs the appointment, composition, and duties and responsibilities of the Nomination Board. The Charter is available on the corporate website at Nomination Board - Orthex Group. The Nomination Board has been established for the time being and can only be dissolved by a decision of the general meeting. The term of office of the members of the Nomination Board expires annually when a new Nomination Board has been appointed.

The Nomination Board consists of the four largest shareholders of the company as of 31 August or, if the company has more than four shareholders, whose shareholding and voting rights in the company are more than 10 per cent, the corresponding number of shareholders or persons appointed by them. The Chair of the Board acts as an expert member of the Nomination Board.

Based on the shareholder register of Orthex Corporation as of 31 August 2024, the shareholders represented in the Shareholders' Nomination Board are Conficap Oy, Alexander Rosenlew, Ilmarinen Mutual Pension Insurance Company and Varma Mutual Pension Insurance Company.

The representatives of the four largest shareholders in the Nomination Board include three men and one woman and they are:

• Erik Toivanen, CEO, Conficap Oy
• Alexander Rosenlew
• Annika Ekman, Head of Direct Equity Investments, Ilmarinen Mutual Pension Insurance Company
• Erkka Kohonen, Senior Portfolio Manager, Varma Mutual Pension Insurance Company

Erik Toivanen was elected to chair the Nomination Board, and its expert member is Sanna Suvanto-Harsaae, Chair of Orthex's Board of Directors.

In September 2024, changes occurred in the composition of the Nomination Board. Conficap Oy appointed Erik Toivanen as its representative, replacing Maarit Toivanen. Additionally, Varma Mutual Pension Insurance Company became one of the company's four largest shareholders, replacing Thominvest Oy. Mats Söderström served as Thominvest Oy's representative on the Nomination Board.

The Nomination Board prepared the proposals for the composition and remuneration of the Board of Directors and submitted them to the Board of Directors of Orthex Corporation. The Board of Directors incorporated these proposals into the notice of the meeting when convening Orthex Annual General Meeting 2024.

Chief Executive Officer

Alexander Rosenlew has been the Chief Executive Officer of Orthex Corporation since 2010. Mr Rosenlew holds master's degrees both in economics and in management.

The CEO is responsible for the operational management of Orthex in accordance with the strategy approved by and instructions and orders given by the Board of Directors. The CEO prepares matters to be decided by the company's Board of Directors, develops Orthex's operations together with the Board in accordance with the set objectives and ensures the proper implementation of the Board's decisions. The CEO is also responsible for ensuring that Orthex complies with applicable laws and regulations and that the company's financial affairs have been arranged in a reliable manner. The CEO chairs the meetings of the Management Team.

Management Team

The role of Orthex's Management Team is to manage Orthex's operative business as a whole. The members of the Management Team have certain powers to act within their respective areas of responsibility, and they have a duty to develop Orthex's business in accordance with the objectives set by the company's Board of Directors and the CEO.

Orthex's Board of Directors appoints the members of the Management Team together with the CEO. The Management Team meets regularly on a monthly basis or when deemed necessary.

Changes took place in the operative management and in the composition of the Management Team in 2024. Peter Ottosson, member of Orthex's Management Team and Operations Director of the Gnosjö factory, decided to leave his position to assume a role with another employer. Mr Ottosson continued in his position until the end of April.

Orthex announced in February that it is clarifying its operational management towards increasing company-wide responsibilities resulting in corresponding changes in the Management Team. Tom Ståhlberg, member of the Management Team and Operations Director of the Lohja factory, was appointed Chief Supply Officer (CSO) assuming the overall responsibility for Orthex production, supply chain and purchasing from the beginning of March. The change also removed the need to replace Peter Ottosson in the Management Team.

In November, the company announced that it had agreed with the Management Team member Alex Nielsen that he will leave the company and his position as Sales Director responsible for Europe and International Markets at the end of November. The recruitment process for a new Sales Director was initiated immediately.

Members of Orthex's Management Team, which consists of four men including the CEO and two women, are presented on the following page. Additional information on the Management Team members' career history and potential positions of trust is available on the corporate website at Management Team - Orthex Group.

Shareholdings of the members of the Management Team

The shareholdings of the CEO and other members of the Management Team (including their closely associated persons or entities), as at the end of 2024, are presented in the table below.

The CEO or other members of the Management Team (or their closely associated persons or entities) have no share-based rights in Orthex or its subsidiaries.

Management's shareholdings

Management Team member	Position	Number of shares on 31 Dec 2024
Alexander Rosenlew	CEO	2,047,726
Oy Rosaco Ab 1)		36,679
Saara Mäkelä	Chief Financial Officer	141,833
Hanna Kukkonen	Chief Marketing and Sustainability Officer	201,530
Tom Ståhlberg	Chief Supply Officer	316,250 2)
Nicholas Ledin	Sales Director, Nordic	62,475
Hans Cronquist	Operations Director, Tingsryd	100,700
Total		2,907,193
% of total shares		16.4%
Orthex total number of shares		17,758,854

1) controlled corporation 2) including shares of closely associated persons

Members of the Management Team on 31 December 2024

From left to right: Nicholas Ledin, Hans Cronquist, Hanna Kukkonen, Saara Mäkelä, Alexander Rosenlew, Tom Ståhlberg.

Alexander Rosenlew

Chief Executive Officer

Management Team member since 2010 Employed by Orthex since 2010 Born 1971, Finnish citizen Master's degrees in economics and in management

Saara Mäkelä Chief Financial Officer, Head of IT

Management Team member since 2017 Employed by Orthex since 2017 Born 1976, Finnish citizen Master's degree in economics

Hanna Kukkonen

Chief Marketing and Sustainability Officer, Head of Product Development

Management Team member since 2012 Employed by Orthex since 2012 Born 1973, Finnish citizen Master's degree in economics

Tom Ståhlberg

Chief Supply Officer

Management Team member since 2012 Employed by Orthex since 2012 Born 1969, Finnish citizen Master's degree in industrial engineering and management

Nicholas Ledin

Sales Director, Nordic

Management Team member since 2015 Employed by Orthex since 2001 Born 1970, Swedish citizen High school graduate

Hans Cronquist

Operations Director, Tingsryd

Management Team member since 2019 Employed by Orthex since 2019 Born 1970, Swedish citizen Master's degree in mechanical engineering

Financial reporting process

Orthex compiles its financial reporting in accordance with the International Financial Reporting Standards (IFRS), the Finnish Securities Markets Act, the Finnish Accounting Act and the guidelines and statements of the Finnish Accounting Board, while also complying with the rules and regulations of the Financial Supervisory Authority and the rules of Nasdaq Helsinki Ltd. The principles, instructions, practices, and areas of responsibility in internal auditing and risk management relating to the company's financial reporting process are aimed at ensuring that the company's financial reporting is reliable and that the financial statements have been prepared in accordance with applicable laws, regulations, and the company's operating principles. Orthex's financial reporting is supervised on two levels, in individual companies and at the group level. On both levels, control measures and analyses are carried out to ensure the validity of financial reporting. The Board of Directors is responsible for overseeing the financial reporting process.

Risk management

The purpose of Orthex's risk management is to ensure the fulfilment of customer promises, business profitability, ability to pay dividends, value creation for shareholders, sustainable business, and business continuity. To achieve this, Orthex strives to be aware of the uncertainties and risk factors and opportunities associated with its objectives and operations, and to identify, assess and manage risks and their consequences in a consistent and effective manner.

Orthex has a risk management policy approved by the Board of Directors that guides risk management in a way that supports the achievement of the company's objectives, protects personnel and the company's various assets, and ensures the financial sustainability of operations.

The responsibility for implementing risk management lies with the Management Team. In addition, each employee must be aware of and manage the risks associated with their own operating environment and areas of responsibility. The company's Board of Directors approves the company's risk management policy and monitors and assesses the effectiveness of risk management.

Risk management principles

Risk management is a systematic activity designed to ensure comprehensive and appropriate risk identification, assessment, management, and control. It is an integral part of Orthex's planning and management process, decision making, day-to-day management of operations, and monitoring and reporting procedures. Risks are assessed and managed in a business-oriented and thorough manner. This means that key risks are systematically identified, evaluated, managed, monitored, and reported as part of the business.

Risk management process and reporting

Orthex prioritises risks according to the importance of the risk by assessing the impact, likelihood, and level of risk management of the risk materialisation. Risk management measures address the most significant risks through cost-effective and appropriate policy options.

The Management Team regularly monitors the implementation of risk management. If necessary, corrective measures will be taken.

The Management Team reports to the Board of Directors on risks and risk management measures 2–3 times a year. The Board reviews the most significant risks, measures to manage them and assesses the efficiency and effectiveness of risk management. The Board reports on the most significant risks and uncertainties in the annual Board of Directors' reports and any material changes in these factors in the interim reports. Additional information on the company's risk management and on the most significant risks and uncertainties is available in the Board of Directors' Report for the year 2024.

Internal control and audit

The Company's Board of Directors has confirmed the operating principles of internal control followed at Orthex, aiming to ensure that the company's objectives regarding, inter alia, Orthex's strategy, operations, practices, and financial reporting in particular are met. The operating principles of internal control also contribute to ensuring the company's compliance with legislation and regulations. Internal control is an essential part of business management and in ensuring that the set objectives are met. Internal control is aimed to be organised efficiently, so that any deviations from targets can be detected as early as possible or that they can be prevented.

Orthex's tools of internal control include internal policies, guidelines, and instructions, together with manual controls as well as controls built into systems. In addition, internal control is implemented in the form of various monitoring reports and meetings. The Board of Directors of Orthex is responsible for organising the internal control and oversees the efficiency of internal control. The Management Team and the CEO are responsible that functioning control procedures are in use.

Orthex Group has not organised its internal audit as a separate function. The Board assesses annually the need for internal audit procedures and may use internal company resources or external service providers for internal audit measures. Any outcomes of such procedures or measures are reported to the Board of Directors.

Related party transactions

The Board of Directors has defined the principles for monitoring and evaluating related party transactions. The company evaluates and monitors transactions concluded between the company and its related parties and ensures that any conflicts of interest are taken into account appropriately in the decision-making process of the company. The company keeps a list of related parties.

Approval of related party transactions concluded in the ordinary course of business and on customary commercial terms is subject to the company's normal approval policies and processes. Approval of a related party transaction that is not concluded in the ordinary course of business or on customary terms is subject to the Board of Directors' approval. The company's finance function monitors related party transactions as a part of the company's normal reporting and control procedures and reports related party transactions to the Board of Directors.

The Board of Directors regularly evaluates the reported related party transactions and the appropriateness of the company's process and policies on related party transactions. Information on transactions concluded between the company and its related parties is disclosed, as required, annually in the notes to the company's consolidated financial statements.

Material related party transactions are disclosed in accordance with Chapter 8, section 1a of the Securities Markets Act.

Insider administration

Orthex has prepared insider guidelines approved by the company's Board of Directors, the purpose of which is to clarify and supplement the operating methods of Orthex and its insiders and to serve as a practical tool in handling insider matters. The Insider Guidelines define clear operating instructions for, among other things, the management of inside information, the maintenance of insider lists and the reporting of transactions by persons subject to disclosure.

The Insider Guidelines apply to Orthex and persons in managerial positions at Orthex, as well as to persons working for Orthex who have access to inside information or who have otherwise become aware of inside information. In addition, the Insider Guidelines apply by agreement to persons otherwise acting on behalf of or for Orthex in the performance of their duties through which they have access to inside information.

Orthex's insider administration compiles insider lists and keeps them up to date in electronic form. In addition to individual insider lists (projectspecific insider list), Orthex may prepare a supplement for permanent insiders (permanent insiders). Permanent insiders include only those persons who, by virtue of their duties, are considered to have continuous access to all inside information about Orthex. In the project-specific insider list, Orthex will include those with inside information about the project, including any external advisors and experts.

Insider lists are maintained by an electronic procedure prepared and / or approved by the Financial Supervisory Authority or another appropriate body that meets the applicable requirements. Insider lists are not public and are not made available to the public.

Orthex will notify the insider in writing of his or her insider status, the resulting obligations and any penalties for breach of those obligations. The person entered in the project-specific insider list will be notified of the termination of the project and the closure of the projectspecific insider list.

Persons discharging managerial responsibilities at Orthex and other permanent insiders, as determined by Orthex, should schedule their trading in Orthex financial instruments in a manner that does not undermine confidence in the securities market.

Persons discharging managerial responsibilities at Orthex are the members of the Board of Directors, the CEO, and the members of the Management Team. Orthex maintains a list of the persons in managerial position and the persons and entities closely associated with them. Orthex does not maintain a list of permanent insiders.

The persons in managerial position at Orthex may not enter into transactions with Orthex financial instruments for their own account or for the account of a third party during a closed period beginning 30 days prior to the disclosure date of Orthex's financial statements release, half-year financial report and the three- and nine-month interim reports provided periodically by Orthex and ending 24 hours after publishing the group's interim report, half-year financial report or financial statements release. In addition, Orthex recommends that persons

discharging managerial responsibilities in the company do not engage in transactions with the company's financial instruments after the end of each quarterly period and that they time their potential transactions to the two-week-period, which begins on a date following the disclosure date of the afore mentioned financial reports.

In accordance with Nasdaq Helsinki Ltd's insider guidelines, Orthex maintains a list of persons who participate in the preparation, auditing, or publication of Orthex's financial reports. Such persons may not carry out transactions for their own account or on behalf of a third party during a closed period.

Persons in managerial position at Orthex and their close associates shall disclose to Orthex all transactions they make on their own account with Orthex's shares, debt instruments or derivatives or other related financial instruments. The reporting obligation applies to transactions carried out on or off any marketplace.

A person in managerial position or another person subject to a trading restriction specified by the company should request an assessment of the legality and regularity of the proposed transaction in the financial instrument from the company's insider administration. Notwithstanding the assessment procedure, the person in a managerial position or the other person mentioned above is responsible for ensuring that they comply with the laws, regulations, and instructions.

Orthex has an internally operated whistleblowing channel through which Orthex employees can anonymously report any suspected violations of financial market rules and regulations. Other stakeholders can report suspected infringements by sending email to whistleblow@orthexgroup.com. Further information and instructions for whistleblowing are available on the corporate website Whistleblowing - Orthex Group.

External audit

According to the Articles of Association, the company has one auditor. The auditor must be a firm of authorised public accountants. The auditor is elected annually by the Annual General Meeting for a term that expires at the end of the next Annual General Meeting following the election. The task of the auditor is to audit the consolidated financial statements, the financial statements of the parent company, the accounting of the Group and the parent company and the administration of the parent company. The company's auditor

submits the auditor's report to the shareholders in connection with the annual financial statements and submits regular reports on its findings to the Board of Directors.

At the Annual General Meeting 2024, Ernst & Young Oy, a firm of Authorised Public Accountants, was elected the company's auditor with Mikko Rytilahti, Authorised Public Accountant, as the signing audit partner. The audit fees paid to the auditor in 2024 totalled EUR 134 thousand (2023: 116 thousand). No fees were paid to the auditor for non-audit services (2023: 3 thousand).

REMUNERATION REPORT 2024

Orthex Corporation's ("Orthex" or "the company") remuneration report for the financial year 2024 has been prepared in accordance with the Finnish Corporate Governance Code 2025 issued by the Securities Market Association and other applicable regulations. The Corporate Governance Code is available on the association's website (www.cgfinland.fi). The remuneration report is published simultaneously with the corporate governance statement, the Board of Directors' report, the financial statements, and the sustainability report on the corporate website at Investors - Orthex Group. The company's Board of Directors has prepared and approved this remuneration report, and it will be presented to the Annual General Meeting to be held on 29 April 2025 for the shareholders' advisory approval.

This remuneration report describes how Orthex has applied the remuneration policy approved at the company's Annual General Meeting on 18 April 2023. The remuneration report describes the remuneration and other financial benefits paid to the members of the Board of Directors and the CEO during the financial year 2024. In addition, the remuneration report compares the development of the remuneration of the Board of Directors and the CEO with the development of the employees' average remuneration and the company's financial development over the past five years.

Introduction

The goal of Orthex's remuneration schemes is to drive and reward the achievement of the company's strategic priorities and thereby promote the company's financial long-term success, competitiveness and favourable development of shareholder value.

Effective and competitive remuneration is an essential tool for recruiting capable management in the company. The remuneration schemes aim to attract, motivate, and retain key employees, and engage them in longterm performance to achieve personal and shared goals and increase shareholder value.

Summary of remuneration in 2024

In 2024, the actual remuneration of the members of the Board of Directors and the CEO followed the remuneration policy. Orthex did not deviate from the remuneration policy in the remuneration of the members of the Board of Directors and the CEO and did not exercise its right to recover the remuneration during 2024.

During the financial year 2024, the members of the Board of Directors were paid fixed monthly fees. The amount of the fees paid depended on the member's role in the Board: Chair of the Board – member of the Board. As decided at the 2024 AGM, the monthly fees remained the same. The fees paid are disclosed under section "Remuneration of the Board of Directors".

The total remuneration paid to the CEO during the financial year 2024 consisted of fixed base salary with fringe benefits and variable short-term incentive paid for the performance in 2023. The CEO's earned short-term incentive for 2023 was 50% of the annual maximum short-term incentive. The CEO's total remuneration in the financial year 2024 amounted to EUR 569,216, of which variable remuneration accounted for 22.1 per cent. Orthex has no long-term share-based or other incentive schemes in place, which partly explains the share of variable remuneration of the CEO's total remuneration. The salaries and incentives paid to the CEO are disclosed under section "Remuneration of the CEO".

Development of the Group's financial performance and remuneration

The following table shows the development of the total remuneration of the Board of Directors and the CEO compared to the development of Orthex employees' average remuneration and the company's financial development over the past five years.

Development of total remuneration and financial development over the past five years

EUR thousand	2024	2023	2022	2021	2020
Net sales	89,734	85,945	84,048	88,694	75,865
Adjusted EBITA	10,234	10,918	5,490	10,996	12,933
Board of Directors 1)	140	144	144	126	71
CEO 1)	569	437	527	478	367
Employees' average remuneration 2)	60	59	55	58	55

1) The remuneration of the Board of Directors and the CEO was adjusted in connection with the company's IPO in March 2021. 2) Employees' average remuneration is total employee remuneration divided by the average number of personnel during the year.

Remuneration of the Board of Directors

The Annual General Meeting decides on the remuneration to be paid to the members of the Board of Directors. The proposal for the remuneration of the members of the Board of Directors for the 2024 Annual General Meeting was prepared by the company's Shareholders' Nomination Board.

In accordance with the decision of the Annual General Meeting in 2024, the remuneration of the Board of Directors remained the same and the Chair of the Board of Directors was paid a monthly fee of EUR 4,000 and other members of the Board of Directors a monthly fee of EUR 2,000.

Board fees were paid monthly in cash. No meeting fees were paid for Board meetings. The remuneration of the members of the Board of Directors does not involve pension contributions and the members of the Board of Directors are not covered by Orthex's incentive schemes.

Reasonable travel and other expenses related to the Board work were reimbursed in accordance with the company's travel rules.

The remuneration paid to the members of the Board of Directors in 2024 is shown in the table on the right. The members of the Board of Directors did not receive any other financial benefits.

Remuneration of the Board of Directors paid in 2024

EUR	Monthly fee	Total
Sanna Suvanto-Harsaae	4,000	48,000
Markus Hellström	2,000	24,000
Jyrki Mäki-Kala	2,000	24,000
Jens-Peter Poulsen 1)	2,000	20,000
Anette Rosengren	2,000	24,000
Total		140,000

1) Resigned from the Board 31 Oct. 2024.

Remuneration of the CEO

The Board of Directors decides on the remuneration of the CEO. The CEO of Orthex is Alexander Rosenlew since 2010. The CEO's remuneration consists of a fixed base salary with fringe benefits and a variable shortterm incentive. In 2024, Orthex did not have any long-term share-based or other incentive schemes. The purpose of rewarding the CEO is to guide the implementation of the company's strategic goals and thereby promote the company's long-term financial success, competitiveness, and favourable development of shareholder value. The CEO's significant shareholding (11.7%) in the company strengthens the alignment of the CEO's interests with those of shareholders.

Under Orthex's variable short-term incentive scheme, the CEO may be granted annual performance-based incentives in addition to his fixed annual salary. The aim of the incentive scheme is to encourage the CEO to commit to the company and motivate him to achieve the best possible result. In addition, the incentive scheme is intended to encourage the CEO to work in a way that supports Orthex's strategy, growth, and competitiveness.

Incentives under annually commencing short-term incentive plans are discretionary and tied to Orthex's results of operations and the achievement of relevant performance metrics and/or individual performance targets. The terms and objectives of the incentive plan, including performance metrics and weights, are determined, and approved annually in advance by the company's Board of Directors. In 2024, the metrics and weights of the CEO's incentive plan were as follows: profit performance 50%, net sales 35%, sustainability 15%. During the financial year 2024, the maximum amount of the CEO's incentive corresponded to 7 months' gross base salary.

The CEO is entitled to a statutory pension. The CEO's pension and retirement age are determined on the basis of the Employees' Pensions Act. The CEO does not have any supplementary pension insurance paid by the company.

The salaries, incentives and fringe benefits paid to the CEO in 2024 are shown in the table below. The incentive paid in 2024 is based on the 2023 short-term incentive plan. The CEO's earned short-term incentive for 2023 was 50% of the annual maximum short-term incentive.

Remuneration of the CEO paid in 2024

EUR	2024	2023
Fixed based salary and mobile phone benefit	443,468	425,527
Incentives	125,748	11,900
Other financial benefits	-	-
Total	569,216	437,427
Share of fixed pay of total remuneration	77.9%	97.3%
Share of variable pay of total remuneration	22.1%	2.7%

The CEO participated in the company's short-term incentive plan 2024. The CEO's earned short-term incentive for 2024 was 14.3% of the annual maximum short-term incentive. The performance-based incentive for the year 2024 will be paid in April 2025.

Remuneration of the CEO not yet paid but due based on the year 2024

Short-term incentive scheme	EUR
Remuneration due based on the achievement of STI
performance targets in 2024	35,928

ANNUAL REVIEW SUSTAINABILITY GOVERNANCE FINANCIAL REVIEW

FINANCIAL REVIEW

Annual and Sustainability Report 2024 Part of the financial statements 60

CONTENTS

Board of Directors' report ⁶²

KEY FIGURES 77

Financial Statements ⁸⁴

CONSOLIDATED FINANCIAL STATEMENTS, IFRS 85

Consolidated income statement 85 Consolidated statement of other comprehensive income 85 Consolidated statement of financial position 86 Consolidated statement of changes in equity 87 Consolidated statement of cash flows 88

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	89
1. Accounting principles for the consolidated financial statements	89
2. Net sales	92
3. Other operating income	93
4. Operating expenses	93
5. Employee benefits	93
6. Financial income and expenses	96
7. Income taxes	96
8. Intangible assets	99
9. Property, plant and equipment	101
10. Leases	102
11. Financial assets and financial liabilities	104
12. Fair value hierarchy	113
13. Inventories	114
14. Trade and other receivables	114
15. Trade and other payables	115
16. Share capital and reserves	115
17. Related party disclosures	116
18. Collaterals, commitments and contingent assets and liabilities	116
19. Subsequent events	117

PARENT COMPANY FINANCIAL STATEMENTS, FAS	118
Parent company income statement	118
Parent company balance sheet	119
Parent company cash flow statement	120
Notes to the parent company financial statements	121
SIGNATURES OF THE BOARD OF DIRECTORS' REPORT
AND FINANCIAL STATEMENTS	125
AUDITOR'S REPORT	126
INDEPENDENT AUDITOR'S REPORT ON THE ESEF CONSOLIDATED
FINANCIAL STATEMENTS OF ORTHEX OYJ	131

BOARD OF DIRECTORS' REPORT

ANNUAL REVIEW SUSTAINABILITY GOVERNANCE FINANCIAL REVIEW

Board of Directors' report

Orthex is a leading Nordic houseware company. Orthex designs, produces, markets, and sells household products with a mission to make consumers' everyday life easier. Orthex offers a broad assortment of household products in three product categories: Storage, Kitchen, and Home & Garden.

Orthex strives to create functional, durable, and high-quality household products. Orthex aims to be the industry forerunner in sustainability.

Orthex markets and sells its products under three main consumer brands: SmartStoreTM, GastroMaxTM and OrthexTM. In addition, it sells kitchen products under the KökskungenTM brand. Orthex's geographic markets include the Nordics, the Rest of Europe, and the Rest of the world. Orthex is headquartered in Espoo, Finland, and it currently has eight local sales organisations located in the Nordics, Germany, France, the United Kingdom, and the Benelux.

	Key figures
--	-------------

EUR million	2024	2023	2022
Invoiced sales	92.3	88.0	85.8
Net sales	89.7	85.9	84.0
Gross margin	25.7	24.3	17.9
Gross margin, %	28.6%	28.3%	21.3%
EBITDA	14.3	14.9	9.2
EBITDA margin, %	15.9%	17.3%	10.9%
Adjusted EBITDA	14.6	14.9	9.3
Adjusted EBITDA margin, %	16.3%	17.4%	11.1%
EBITA	9.8	10.9	5.3
EBITA margin, %	11.0%	12.6%	6.3%
Adjusted EBITA	10.2	10.9	5.5
Adjusted EBITA margin, %	11.4%	12.7%	6.5%
Operating profit	9.8	10.8	5.2
Operating profit margin, %	11.0%	12.5%	6.2%
Net cash flows from operating activities	11.8	10.2	6.2
Net debt / Adjusted EBITDA	1.4x	1.5x	2.8x
Adjusted return on capital employed (ROCE), %	29.7%	31.8%	15.9%
Equity ratio, %	41.9%	40.2%	36.3%
Earnings per share, basic (EUR)	0.34	0.39	0.12
FTEs	288	281	295

Long-term financial targets

As long-term financial targets the company has adopted to an average annual organic net sales growth to exceed 5 per cent at the Group level and to exceed 10 per cent outside the Nordics (growth in local currencies), adjusted EBITA margin (adjusted for items affecting comparability) to exceed 18 per cent over time and net debt to adjusted EBITDA ratio to stay below 2.5x. Leverage may temporarily exceed the target range (for example, in conjunction with acquisitions).

The company aims to distribute a stable and over time increasing dividend with a pay-out of at least 50 per cent of net profit, in total, on a biannual basis.

Market overview

Orthex operates in the storage, kitchenware, and home and garden products market, which has historically been stable and resilient throughout different economic cycles. The market for household products in Europe is fragmented. Although the market is competitive, fragmentation lowers the threshold to increase market share and find attractive niches.

The major megatrends supporting Orthex's business include urbanisation and the related increase in the number of households and decrease in living space per household. More people live in single-person households and family sizes are decreasing. According to Eurostat, the number of single-person households in the EU increased by 21% from 2013 to 2023. Small spaces drive demand for functional storage solutions and household products that allow efficient use of the living

space. Despite households being inhabited by fewer people, the need for necessities, such as home storage, food storage and kitchen utensils, remains nearly the same per household.

Consumption patterns supporting Orthex's business are mainly related to how people spend their time at home. One of these is the interest in cooking at home, which continues trending as a healthy, and less expensive way of eating. As per 6Wresearch1), European kitchenware market is projected to grow at a CAGR of 5% between 2025 and 2031.

Consumers are increasingly concerned about climate change and biodiversity loss and want to do their part in the fight against them by buying sustainable products, avoiding food waste, and sorting and recycling their waste. Tightening legislation also supports this development. However, only a few households have enough preinstalled waste recycling and sorting solutions, which creates a demand for these and for sorting and recycling solutions that can also function as interior design elements. According to Mordor Intelligence2), European home organisers and storage market is expected to grow at a CAGR of over 4% between the years 2025 and 2030.

Another consumption pattern supporting Orthex's business is the demand for houseplants and interest in gardening. Houseplants bring fresh air, colour, and cosiness into homes. Their use as design elements is becoming commonplace, particularly in dense urban areas that have limited green spaces. In addition, there is increasing popularity for gardening herbs, plants, and vegetables indoors and outdoors. These trends are driving demand for plant care products.

The uncertainties related to the general development of the global economy and geopolitical tensions influence consumer confidence, purchasing power and behaviour and, as a result, can have an impact on Orthex's business. As a result of the prevailing consumption uncertainty, many retailers are carefully monitoring their inventory levels. Orthex product price points are relatively low, and the products are bought to solve real needs. Therefore, Orthex believes that its product categories will be less affected by careful consumer purchasing behaviour than other, more expensive consumer goods categories. Orthex will follow the market trends and will strive to navigate through changing conditions as efficiently as possible.

Group performance

Net sales and profitability

In 2024, the Group's Net sales increased by 4.4% to EUR 89.7 million (85.9). Invoiced sales amounted to EUR 92.3 million (88.0). The increase in constant currency net sales was 4.3% compared to 2023.

The year 2024 was characterized by low consumer confidence and customer carefulness, leading to a slower than normal business climate. Despite this, the company's full-year net sales were the highest ever so far. Successful launches of novelties, campaigns, strong in-store activities as well as new product and customer listings contributed to the net sales growth.

1) Prominent companies in Europe Kitchenware Market with Size 2) Europe Home Organizers & Storage Market Size & Share Analysis - Industry Research Report - Growth Trends

EBITA was 9.8 million (10.9) during 2024 and decreased by 9.4%. Adjusted EBITA decreased by 6.3% to EUR 10.2 million (10.9). Adjusted EBITA margin decreased to 11.4% (12.7). Operating profit was EUR 9.8 million (10.8). Items affecting comparability totalled EUR 0.4 million (0.1). When considering the one-time energy price support received in Sweden in the previous year (EUR 0.7 million), the comparable EBITA increased by EUR 0.1 million.

The lower profitability is attributed to increased production cost planned for higher sales, enforcement of commercial organisation, commercial activities, and salary inflation. In addition, the profitability was negatively impacted by higher credit loss provisions. Raw material fluctuation stabilized during the year.

Orthex's financial income and expenses during the financial year consisted of EUR 2.1 million net expenses (2.2). The decrease in net financial expenses is mainly due to lower interest expenses related to bank loans.

Profit before taxes was EUR 7.8 million (8.5) and profit for the period was EUR 6.1 million (6.9).

Development by geography

Orthex's core market area by geography is the Nordics, where the Group's invoiced sales in 2024 amounted to EUR 71.1 million (68.7). Invoiced sales in the Nordics totalled 77.1% (78.1) of the Group's total invoiced sales. Invoiced sales in the Rest of Europe grew to EUR 20.3 million (18.5). Sales in the Rest of the world increased to EUR 0.9 million (0.8).

Invoiced sales increased steadily in the Nordic core markets during the first half of the year due to successful campaigns and strong in-store activities. Careful consumer behaviour affected the retailers' buying volumes especially in Sweden in the latter part of the year. In January–December, invoiced sales in the Rest of Europe grew in line with the long-term strategic target by solid 10.0%.

Orthex's products are sold in more than 40 countries, and export to non-Nordic countries grew by 1.0 percentage point and accounted for 22.9% (21.9) of the Group's invoiced sales at the end of the period.

Invoiced sales by geography

EUR million	2024	2023	2022
Nordics	71.1	68.7	68.5
Rest of Europe	20.3	18.5	15.9
Rest of the world	0.9	0.8	1.5
Total	92.3	88.0	85.8

Development by product category

Orthex combined the previous Home & Yard and Plant care categories into a new reporting category called Home & Garden from the beginning of 2024. The Home & Garden category includes all the same items as the previous two categories. Now Orthex has three reporting categories which are Storage, Kitchen, and Home & Garden.

Orthex's largest category is Storage with invoiced sales totalling EUR 63.6 million (60.0) during 2024. The Storage category grew driven by new customer and product listings, and successful new product launches and campaigns. The Storage category represents most of

the business outside of the Nordic countries and the positive sales development in the Rest of Europe took the overall Storage category growth to 5.9% compared to the previous year.

Orthex has a strong position in the Nordics in food storage and kitchenware products and the Group's invoiced sales in the Kitchen category increased to EUR 19.3 million (18.6). Widening customer distribution and the successful rebranding of SmartStoreTM food storage products is visible in the Kitchen category's sales growth.

Invoiced sales in the Home & Garden category amounted to EUR 9.4 million (9.4).

Invoiced sales by product category

EUR million	2024	2023	2022
Storage	63.6	60.0	55.1
Kitchen	19.3	18.6	19.8
Home & Garden	9.4	9.4	10.9
Total	92.3	88.0	85.8

Financial position and cash flow

At the end of December, the balance sheet totalled EUR 85.6 million (85.6), of which equity accounted for EUR 35.8 million (34.4).

The Group's net debt was EUR 20.3 million (22.3) at the end of the review period. Non-current interest-bearing liabilities were EUR 26.3 million (29.6) and Orthex's total interest-bearing liabilities were EUR 30.7 million (33.9). Interest-bearing liabilities include loans from credit institutions, pension liabilities and lease liabilities.

During the period January−December 2024, the Group's net cash flows from operating activities were EUR 11.8 million (10.2) and cash conversion was 70.9% (82.6). The energy price compensation received in Sweden (EUR 0.7 million) was paid to the company in June 2023. Interest paid during the period totalled EUR 1.8 million (1.9). Cash and cash equivalents amounted to EUR 10.5 million (11.6) at the end of the review period.

Net debt/adjusted EBITDA was 1.4 (1.5). Orthex's long-term target is to keep Net debt/adj. EBITDA below 2.5x.

At the end of the review period, the Group's Equity ratio was 41.9% (40.2). Adjusted return on capital employed (ROCE) was 29.7% (31.8) and return on equity (ROE) 17.4% (21.5).

Investments, research, and product development

Orthex's investments during 2024 amounted to EUR 4.3 million (2.6) and were mainly related to moulds for new products and capacity increases. The increase in investments is due to the timing of completion of the investments made in 2023 to the beginning of the year 2024.

Orthex is involved in three large research projects for the development of recycled and renewable plastics. Orthex is researching in collaboration with Fortum and other partners whether recycled plastic could be used in products suitable for food contact. Since 2023, Orthex is participating in a large cooperation project of seven years to promote the circular economy of plastics. Orthex's goal is to find new potential, environmentally friendly plastic raw materials, test raw materials in production and as finished products, and then bring new products to the market. Orthex is also involved in the Reusify project that started in 2024 and aims to reduce single-use packaging.

These investments in research support Orthex's 2030 carbon neutrality target and the target to increase the use of recycled and renewable raw materials.

Research and product development expenses have not been capitalized.

Personnel

In 2024, the average number of personnel employed by Orthex was 288 (281). In 2024, wages and salaries amounted to EUR 19.0 million, in 2023 to EUR 17.9 million, and in 2022 to EUR 18.3 million. Group headcount at the end of the financial year was 312 (318), of which 51% (52) worked in production, 21% (21) in warehouse, 17% (18) in sales, 6% (6) in administration and 5% (4) in marketing.

Group structure

There were no changes in the Group structure during 2024.

Governance

The company's governance complies with the company's Articles of Association and Corporate Governance Principles as well as rules and regulations applicable to Finnish listed companies such as the Finnish Limited Liability Companies Act and Securities Markets Act, and rules and regulations of Nasdaq Helsinki Ltd. The company also adheres to the Finnish Corporate Governance Code 2025 ("CG Code") issued by the Securities Market Association. The CG Code is available on the association's website (www.cgfinland.fi).

Further information on the company's governance principles is available in the Corporate Governance Statement 2024 published simultaneously with the Board of Directors' report and the Financial Statements. As the company has no audit committee, the company's Board of Directors has reviewed the Corporate Governance Statement.

Decisions of the Annual General Meeting

Orthex Corporation's Annual General Meeting was held in Espoo on 9 April 2024. The general meeting adopted the financial statements and discharged the members of the Board of Directors and the CEO from liability for the financial year 2023. The general meeting also approved the 2023 remuneration report for governing bodies.

The general meeting approved the Board of Directors' proposal to pay a dividend of EUR 0.21 per share. The dividend was paid in two instalments. The first instalment of EUR 0.11 per share was paid on 18 April 2024. The second instalment of EUR 0.10 per share was paid on 9 October 2024.

The general meeting resolved that Sanna Suvanto-Harsaae, Markus Hellström, Jyrki Mäki-Kala, Jens-Peter Poulsen and Anette Rosengren be re-elected to the Board, all for a term of office ending at the end of the next Annual General Meeting. Sanna Suvanto-Harsaae continues to chair the Board. The general meeting resolved that the remuneration of the members of the Board of Directors remain the same and that the Chair of the Board of Directors be paid a monthly fee of EUR 4,000 and other members of the Board of Directors a monthly fee of EUR 2,000.

Ernst & Young Oy, a firm of Authorised Public Accountants, was reelected the company's auditor with APA Mikko Rytilahti continuing as the signing audit partner.

The general meeting authorised the Board of Directors to issue or convey a total maximum of 1,600,000 new shares and special rights entitling to shares in one or several issues. The Board of Directors was also authorised to decide on the acquisition of a maximum of 175,000 company shares. The authorisations are valid until 30 June 2025.

Further information about the decisions of the general meeting can be found in the AGM documents, which are available on the corporate website at Annual General Meeting 2024 - Orthex Group.

Changes in the Management Team

During the year, changes took place in the company's operational responsibilities and the Management Team. Orthex clarified its operational management towards increasing company-wide responsibilities and appointed Tom Ståhlberg Chief Supply Officer (CSO) assuming the overall responsibility for Orthex production, supply chain and purchasing from the beginning of March. In addition, Peter Ottosson, member of the company's Management Team and Operations Director of the Gnosjö factory, left the company at the end of April, and Alex Nielsen, member of the company's Management Team and Sales Director, Europe and International Markets at the end of November. These changes are elaborated in further detail in the stock exchange releases issued by the company in January, February, and November 2024 and they are available on the corporate website at Media - Orthex Group.

Change in the Board of Directors

Jens-Peter Poulsen, member of Orthex's Board of Directors since 2021 announced in October that he had decided to resign from the Board as of 31 October 2024 since he had been appointed to a new, timeconsuming full-time position. Following his resignation, the Board of Directors of Orthex will consist of four members until the next Annual General Meeting.

Board of Directors

On 31 December 2024, the company's Board of Directors consisted of the following members: Sanna Suvanto-Harsaae (Chair), Markus Hellström, Jyrki Mäki-Kala, and Anette Rosengren.

Management's ownership and remuneration

On 31 December 2024, the members of the Board of Directors, the CEO, and other members of the Management Team, including their closely associated persons and entities, owned a total of 2,923,358 shares in the company, corresponding to 16.5% of the total number of shares. Information on the shareholdings of the members of the Board of Directors, the CEO, and other members of the Management Team is disclosed in the Corporate Governance Statement 2024 and on the corporate website.

Information on the remuneration of the members of the Board of Directors, the CEO, and other members of the Management Team is disclosed in the notes to the financial statements. The remuneration of the members of the Board of Directors and the CEO is also described in the Remuneration Report 2024.

Composition of Shareholders' Nomination Board

The Extraordinary General Meeting on 5 March 2021 decided to establish a Shareholders' Nomination Board for the company and the Nomination Board's charter was approved. The Nomination Board consists of the four largest registered shareholders of the company as of 31 August. According to the shareholders' register, the company's four largest shareholders on 31 August 2024 were Conficap Oy, Alexander Rosenlew, Ilmarinen Mutual Pension Insurance Company, and Varma Mutual Pension Insurance Company.

On 11 September 2024, the company announced that these shareholders have appointed their representatives to the Shareholders' Nomination Board, the composition of which is as follows:

• Erik Toivanen, CEO of Conficap Oy
• Alexander Rosenlew
• Annika Ekman, Head of Direct Equity Investments of Ilmarinen Mutual Pension Insurance Company
• Erkka Kohonen, Senior Portfolio Manager of Varma Mutual Pension Insurance Company

The Nomination Board has elected Erik Toivanen as its chair. The Chair of Orthex's Board of Directors, Sanna Suvanto-Harsaae, acts as an expert member of the Nomination Board.

More information on the Nomination Board is available on the corporate website at Nomination Board - Orthex Group.

Shares and shareholders

Orthex's shares are listed on the main list of Nasdaq Helsinki Ltd since March 2021.

At the end of the reporting period, Orthex Corporation's registered share capital amounted to EUR 80,000 and the registered number of issued shares was 17,758,854. All shares carry one vote and have equal voting rights. There are no voting restrictions associated with the shares. The shares hold no nominal value. The trading code of the shares is "ORTHEX", and the ISIN code FI4000480504.

Trading volume during the period was EUR 13.1 million (7.3) and 2,164,530 shares (1,497,211). The highest price of the share was EUR 7.30 (5.76) and the lowest was EUR 4.89 (3.70). The closing price of the share at the end of December was EUR 5.00 (5.40). The year-end market value of the share capital stood at EUR 88.8 million (95.9). The company did not have any treasury shares at the end of the review period.

At year-end, the number of registered shareholders including nominee registers was 14,429 (15,587). The nominee-registered shares accounted for 11.6% of the total number of shares and amounted to 2,052,890 shares. At the end of the period, the ten largest registered shareholders possessed a total of 52.6% (50.0) of Orthex's shares and votes.

Authorisations, option, and share-based incentive schemes

During 2024, Orthex did not have any share option or share-based incentive schemes.

Orthex's Board of Directors is authorised to issue or convey a total maximum of 1,600,000 shares and special rights entitling to shares in one or several issues. The Board of Directors is also authorised to acquire a maximum of 175,000 shares in the company. The authorisations will be valid until 30 June 2025. The Board of Directors has no other authorisations.

Major shareholders 31 Dec 2024*

	No. of	% of
Shareholder	shares	shares
Conficap Oy	2,486,240	14.00
Rosenlew Alexander	2,047,726	11.53
Ilmarinen Mutual Pension Insurance Company	1,061,000	5.97
Varma Mutual Pension Insurance Company	831,106	4.68
Thominvest Oy	761,000	4.29
OP-Finland Small Cap	641,591	3.61
Aktia Capital Mutual Fund	521,274	2.94
Oy Julius Tallberg Ab	352,571	1.99
Fondita Nordic Micro Cap Investment Fund	328,500	1.85
Ståhlberg Tom Christian	314,000	1.77
Total	9,345,008	52.6

*) Source: Euroclear Finland

Sector distribution 31 Dec 2024*

Sector	No. of shares	% of shares
Households	5,952,179	33.52
Private companies	4,974,904	28.01
Financial and insurance institutions	2,080,836	11.72
Public sector organisations	2,379,032	13.40
Non-profit institutions	294,742	1.66
Foreigners	24,271	0.14
Nominee registered	2,052,890	11.56
Total	17,758,854	100

Under the provisions of the Securities Market Act, changes in holdings must be disclosed when the holding reaches, exceeds, or falls below 5, 10, 15, 20, 25, 30, 50 or 66,7 (2/3) per cent of the voting rights or the number of shares in the company. The stock exchange releases on notifications of changes in holdings (flaggings) are available on the corporate website at https:/investors.orthexgroup.com/.

*) Source: Euroclear Finland

Share distribution 31 Dec 2024*

Number of shares	Number of shareholders	% of shareholders	Number of shares	% of shares
1–100	9,591	66.47	517,053	2.91
101–1,000	4,301	29.81	1,364,728	7.69
1,001–10,000	461	3.19	1,117,347	6.29
10,001–100,000	53	0.37	1,553,902	8.75
100,001–1,000,000	19	0.13	5,790,608	32.61
> 1,000,000	4	0.03	7,415,216	41.76
Total	14,429	100	17,758,854	100
Nominee registered	8	0.06	2,052,890	11.56

*) Source: Euroclear Finland

Sustainability

Sustainability is a core element in implementing Orthex's growth strategy and key objectives as we strive to be the number one brand in storage products in Europe, and to strengthen our position as a leading houseware company in the Nordics. Sustainability is a key factor in all decision making at Orthex and a significant driver of our development and investment agenda. For example, a prerequisite for all new product investments is that the material should be either recycled or renewable. Orthex does not make single-use products. On the contrary, Orthex's products are made for long-term use and are fully recyclable in all our markets at the end of their life cycle.

Orthex aims to be the industry forerunner in sustainability by offering timelessly designed, high-quality, safe, and long-lasting products, reducing the carbon footprint of its operations and products, and sourcing more and more of its raw materials from recycled and renewable materials. Orthex's main sustainability target is to aim towards carbon neutral production by 2030. The Science Based Targets initiative (SBTi) has approved Orthex's near-term science-based emissions reduction target, which means that Orthex's climate targets are aligned with the target to keep global warming below 1.5°C in accordance with the Paris Agreement.

Orthex has identified priority sustainability topics in environmental, social and governance (ESG) areas. For each topic, the company has defined key performance indicators and targets. More information on the company's sustainability strategy, set targets, and achieved results in 2024 can be found in the Annual and Sustainability Report's dedicated section on sustainability.

Sustainability actions in 2024

Orthex's active sustainability work continued during 2024.

Circular Economy Green Deal

Orthex announced in December that it has joined the Circular Economy Green Deal. Orthex's commitment relates to action areas "Increasing the value of recycled materials and bio-based raw materials in production" and "Expanding the availability of circular economy products in the market". Orthex commits to replace in its production virgin raw materials with recycled and renewable raw materials and to introduce new plastic products made from recycled or renewable materials to the market.

The Circular Economy Green Deal is a voluntary strategic commitment shared by companies, municipalities, regions, sectoral organisations, and the Finnish government in which the participating organisations commit to reducing their use of natural resources and setting effective goals, and to taking actions that promote a low-carbon circular economy. The objectives include curbing the consumption of non-renewable natural resources and doubling the circular economy rate of resources and materials by 2035.

Recognitions

In January, Orthex was ranked in 6th place among the Nasdaq Helsinki small-cap companies in the Nordic Business Diversity Index examining the diversity of senior leadership in Nordic listed companies.

Orthex reached the highest Leadership level with a score A- in the Climate Disclosure Project's (CDP) climate change program which assesses climate change related risk management and practices. Outcome of the 2023 CDP reporting was disclosed in February 2024. Outcome of the 2024 CDP reporting is still pending.

EcoVadis disclosed its 2023 sustainability rating outcome in July placing Orthex at the bronze level. EcoVadis rates businesses' sustainability based on their environmental impact, labour and human rights standards, ethics, and procurement practices.

In addition, Orthex was awarded the Nasdaq ESG Transparency Partner badge for 2023 ESG reporting for a third year in a row.

Audits

Orthex strives to minimise its impact on the environment and climate and invests in high-quality and safety of its products. All our three factories in Finland and Sweden have already since 2002 been ISO 14001 and 9001 certified for their environmental and quality management systems. In 2021, Orthex's operations were awarded the ISO 45001 certification for occupational health and safety management system.

During the first months of the year, Orthex's operations were evaluated based on the principles of the SMETA sustainability audit. SMETA is the world's most widely used audit, and the abbreviation stands for Sedex Members Ethical Trade Audit. The SMETA audit was conducted at Orthex's Tingsryd factory for the second time and at the Lohja factory for the first time. The level of Orthex's operations were assessed in terms of occupational health and safety, working conditions, environmental performance, and business practices. The audit performed by an external party effectively maps the level of operations

and shows potential areas for improvement and ensures that we maintain the highest standards in all aspects of our operations.

In March, Orthex's Lohja factory was audited and the ISCC PLUS certificate was renewed. Corresponding audit was carried out in the Gnosjö factory in May resulting in renewal of its ISCC PLUS certificate as well. Usage of ISCC PLUS certified renewable raw materials produced by applying the mass balance approach supports Orthex's long-term carbon neutrality target, and the target to increase the share of sustainable raw materials in production.

Research investments

Orthex is involved in three large research projects focusing on the development of recycled and renewable plastics, because the supply of high-quality recycled materials suitable for different purposes is still weak. In addition, the company has recruited a product engineer specialising in the research and testing of new raw materials in practice.

Transparent plastic and food contact with plastic are still difficult or even impossible to achieve with recycled plastic. To tackle this challenge that is crucial for Orthex's carbon neutrality target, Orthex is researching in collaboration with Fortum and other partners whether recycled plastic could be used in products suitable for food contact. The research results have been promising but the start of industrial scale use will require, among others, further improvements in the sorting technology. In 2024, the research project focused on the development of this technology, improvement of recycled plastic's traceability, and closer review of the legal restrictions.

Since 2023, Orthex is also participating in a large cooperation project of seven years to promote the circular economy of plastics. Orthex's goal is to find new potential, environmentally friendly plastic raw materials, test raw materials in production and as finished products, and then bring new products to the market.

Orthex is also involved in the Reusify project that started in 2024 and aims to reduce single-use packaging. The project includes several different stakeholders as cooperation across the entire value chain is a prerequisite for a circular economy. The goal of the project is to increase the reuse of packaging by generating new knowledge and expertise on how the reuse of single-use packaging could be implemented and what kind of a system it would require.

These significant investments in research support Orthex's 2030 carbon neutrality target and the target to increase the use of recycled and renewable raw materials. These research projects are elaborated in further detail in the sustainability section of the Annual and Sustainability Report 2024.

Investments in novelties

Orthex also invests in novelties on a continuous basis and a prerequisite for all new product investments is that the material should be either recycled or renewable. In 2024, we launched several novelties, including a practical food waste bin SmartStore™ Collect Biowaste, a modern range of SmartStoreTM Essence storage baskets and a stackable sorting solution SmartStoreTM Collect Stack-it. All these products are made from recycled plastic, marking further steps towards our sustainability goals and showing Orthex's ongoing commitment to increase the use of recycled and renewable materials in production.

A comprehensive description of Orthex's sustainable business practices is included in the sustainability section of the Annual and Sustainability Report 2024.

Risks and uncertainties

Risk management

The purpose of Orthex's risk management is to ensure the fulfilment of customer promises, business profitability, ability to pay dividends, value creation for shareholders, responsible business, and business continuity. To achieve this, Orthex strives to be aware of the uncertainties and risk factors and opportunities associated with its objectives and operations, and to identify, assess and manage risks and their consequences in a consistent and effective manner.

Orthex's risk management policy guides risk management in a way that supports the achievement of the company's objectives, protects personnel and the company's various assets, and ensures the financial sustainability of operations.

The responsibility for implementing risk management lies with the Management Team. In addition, each employee must be aware of and manage the risks associated with their own operating environment and areas of responsibility. The company's Board of Directors approves the company's risk management policy and monitors and assesses the effectiveness of risk management.

Risk management principles

Risk management is a systematic activity designed to ensure comprehensive and appropriate risk identification, assessment, management, and control. It is an integral part of Orthex's planning and management process, decision making, day-to-day management of operations, and monitoring and reporting procedures. Risks are assessed and managed in a business-oriented and thorough manner. This means that key risks, including ESG risks, are systematically identified, evaluated, managed, monitored, and reported as part of the business.

Risk management process and reporting

Orthex prioritises risks according to the importance of the risk by assessing the impact, likelihood, and level of risk management of the risk materialisation. Risk management measures address the most significant risks through cost-effective and appropriate policy options.

The Management Team regularly monitors the implementation of risk management. If necessary, corrective measures will be taken.

The Management Team reports to the Board of Directors on risks and risk management measures 2-3 times a year. The Board reviews the most significant risks, measures to manage them and assesses the efficiency and effectiveness of risk management.

Risk classification

Risk refers to an event or circumstance that may hinder or prevent the achievement of targets or may result in missing of business opportunities. Orthex classifies risks in three groups:

• Strategic risks
• Operational risks
• Financial risks

Strategic risks refer to uncertainty that is primarily related to changes in the operating environment and the ability to utilize or anticipate these changes. These changes may relate, for example, to the general economic situation, customer consumption behaviour, competition, legislation, or technological developments. When assessing strategic risks and opportunities, the goal is to find the business opportunities that are used to achieve the goals with manageable risks, while avoiding those that present unreasonably high risks.

Operational risk means a circumstance or event that can prevent or hinder the achievement of objectives or cause harm to people, property, business, information, or the environment. Operational risks are avoided or reduced, but in such a way, that the costs of risk avoidance are proportionate to the magnitude of the risk.

Financial risks are those related to Orthex's financial position. These include e.g., availability and cost of finance, net working capital and liquidity, and foreign exchange rate fluctuations. Orthex's financial risk management is described in the notes to the consolidated financial statements.

Non-economic impacts are also considered when assessing risks. Reputation risk arises if Orthex's operations conflict with the expectations of various stakeholders, such as customers, suppliers, regulators, or shareholders. Responsible practices are key to preventing reputational risks. Reputation risks are managed through timely and adequate communication.

Main strategic, operational, and financial risks

Risks relating to the macroeconomic environment

Cost inflation, interest rate levels, and geopolitical tensions impact the global economic trend as well as the development of consumers' purchasing behaviour and, as a result, can have an impact on Orthex's business. Russia's war against Ukraine or the conflict in the Middle East do not directly affect Orthex's business as Orthex does not sell products to Russia, Belarus, Ukraine, or Israel or source raw materials from these countries. However, geopolitical tensions cause disturbances in global supply chains and contribute to the general economic situation and consumers' purchasing power and behaviour. These factors may affect the company's sales and profitability as well as operational reliability and efficiency. The Group has hedged part of its interestbearing liabilities against rising interest rates with interest derivatives. In addition, some of the electricity contracts have been purchased at fixed prices due to the strong volatility of market electricity.

Risks relating to changes in competitive environment

Orthex operates in a competitive and fragmented storage, kitchenware, and home and garden products market. Even though the markets in which Orthex operates are fragmented, Orthex's competitors may consolidate, establish consortiums, or aim to expand their operations in the future, which may increase competition in Orthex's markets,

including in the Nordics. Any significant consolidation could create competitors with more financial, technical, marketing, or other resources that would enable them to assign more resources to the sale of household goods than currently, which, in turn, could have an adverse effect on Orthex's business and growth opportunities.

Risks relating to sourcing of raw materials

Plastic polymers are the largest group of raw materials used in the production of Orthex's products. Raw material prices are typically negotiated annually based on estimated volumes for the year ahead. Orthex does not hedge against raw material price fluctuations. Accordingly, Orthex's profitability is particularly exposed to fluctuations in virgin plastic polymer (produced directly from crude oil and never been used or processed before) prices, which have historically fluctuated to a certain extent in line with crude oil price fluctuations.

Orthex also uses recycled and renewable materials in the production of its products and sells products entirely sourced from external suppliers, as well as products that are partly produced in-house and partly consist of externally sourced components. The prices of these raw materials and traded goods have not historically been subject to the same level of fluctuation as virgin plastic polymers. However, there has been shortage on the market because of higher demand and this can lead to higher prices also in recycled and renewable materials. If Orthex is unable to offset price increases in raw materials and traded goods, whether through price increases or otherwise, or should there be significant disruptions in their availability, this could have a material adverse effect on Orthex's profitability and/or margins.

Risks relating to quality of products

Thanks to its own production, Orthex can control the quality of its products and the health and environmental aspects of production and products. Although Orthex has several quality control measures in place, there can be no assurances that such measures will always be adequate to detect potential product quality defects.

Any significant quality issue may require a considerable amount of management resources. Responding to detected or suspected quality issues, for example, by proactively adjusting production processes or by switching the materials or components used, usually gives rise to costs that may be significant. Such events may also lead to product recalls, product liability or warranty claims, and contractual liabilities towards Orthex's customers and/or end-customers, or to third-party claims. Product quality issues or product recalls may also harm Orthex's reputation and lead to loss of customers. Furthermore, Orthex's insurance coverage does not cover claims based on quality issues and product liability claims concerning Orthex's products. Realisation of the aforementioned risks may have a material adverse effect on Orthex's business, results of operations, financial position, and/or reputation.

Risks relating to changes in customer preferences

Several megatrends and consumer preferences have been driving the demand in the home storage, food storage and kitchen utensils markets in recent years, including population growth, urbanisation, changes in the form of housing, sustainability, and design preferences among the end-customers of Orthex's products. Changes in consumer preferences could relate to, among others, improved functionality, higher quality, innovative solutions, new technologies, attractive design, and new and more advanced materials.

If Orthex is unable to successfully anticipate and identify changing consumer preferences, Orthex could lose its market share in the Nordics, its sales development may be slower than expected, and it may be forced to rely on price reductions to dispose of excess or slow-moving inventory or to make significant investments in the future to remain competitive. Any of these could have a material adverse effect on Orthex's business, financial position and/or results of operations.

Risks relating to production facilities and warehouse operations

As Orthex's production largely relies on its own production facilities, events that would cause significant disruptions in or the suspension of Orthex's production facilities could materially affect Orthex's ability to deliver its products to its customers in a timely manner. Orthex's production facilities may be damaged or destroyed, or they may be closed or the equipment on the premises may be damaged due to, for example, fire, accident, natural disaster, or equivalent events beyond Orthex's control. Similarly, Orthex's warehouses could be subject to similar events, which could destroy all or part of Orthex's inventory. Such events or incidents could result in material disruptions and delays in Orthex's production and deliveries and in Orthex not necessarily being able to fulfil its obligations to its customers. If Orthex were unable to locate alternative production facilities, transfer production to Orthex's other production facilities or to repair the damaged premises or equipment in a timely and cost-effective manner, such conditions could have a material adverse effect on Orthex's business, financial position and/or results of operations.

Risks relating to IT infrastructure and systems

Difficulties in maintaining and updating IT infrastructure, deficiencies in IT systems, and external cyber-attacks related to IT systems may have an adverse effect on Orthex. Orthex uses information technology infrastructure, applications and software products that cover essential aspects of its business, such as production, inventory management, logistics, human resources, finances, and other administrative systems. Orthex's IT systems and infrastructure may be vulnerable to cybersecurity risks, including cyber-attacks, direct or indirect, such as computer viruses and worms, phishing attacks, and penetrating or bypassing security measures in order to gain unauthorised access to Orthex's information networks and systems. Exploitation of possible weaknesses in Orthex's security controls could disrupt its business and cause leakage of sensitive information, theft of intellectual property and damage to Orthex's reputation.

Risks relating to management and employees

The success of Orthex's business and strategy depends on Orthex's ability to attract and retain key management and production personnel. The loss of management or key personnel may result in the loss of expertise or, in certain circumstances, the transfer of expertise to Orthex's competitors. In addition, Orthex's production processes require qualified, skilled production workers (particularly with specialized training and knowledge of plastic).

In accordance with its current strategy, in addition to strengthening its market position in the Nordics, Orthex will focus on accelerating its growth in the international markets outside the Nordics, which imposes new demands to Orthex's management and personnel. Orthex's geographical expansion also requires the recruitment of additional

personnel. If Orthex is not successful in recruiting and retaining qualified key personnel, this may have an adverse effect on Orthex's business.

Risks relating to regulation and compliance

With operations in several countries, Orthex is subject to a variety of laws and regulations, and potential violations of such laws and regulations could have an adverse effect on Orthex. Orthex must comply with laws and regulations enacted at both the national and EU level concerning its operations in relation to matters including health, safety, consumer protection and marketing, general product safety, environment, employment, competition, company law, data protection, international trade, and taxation in all countries in which Orthex pursues business. Failure to comply with applicable laws and regulations may cause Orthex financial losses, undermine Orthex's business opportunities and harm Orthex's reputation.

Risks relating to taxation

Orthex's tax burden depends on certain tax laws and regulations and their application and interpretation (for example, with regard to transfer pricing rules). Changes in tax laws and regulations or their interpretation and application may increase Orthex's tax costs to a significant degree, which could have an adverse effect on Orthex's financial position and/or results of operations. In addition, Orthex may at times be subject to tax audits conducted by national tax authorities. Tax audits or other auditing measures carried out by tax or other authorities, such as customs officials, could result in an imposition of additional taxes (such as income taxes, taxes at source and property, capital, transfer, and value-added taxes), which could lead to an increase in Orthex's tax liability.

In 2022, Orthex Corporation was subject to a tax audit regarding the financial years 2020 and 2021. The tax audit report included subsequent taxes and tax increases amounting to a total of EUR 0.3 million relating to the VAT deductibility of IPO related costs. The company disagreed with the interpretation made in the tax audit and filed a claim for adjustment to its taxation with the Assessment Adjustment Board of the Finnish tax authority. However, the company was requested to pay additional taxes in accordance with the interpretations set out in the tax audit report and the company paid the subsequent taxes and tax increases in June 2022. Orthex did not recognise the subsequent taxes and tax increases in the consolidated statement of comprehensive income. The Assessment Adjustment Board issued its decision on the company's claim for adjustment in February 2025 and the company's claim was partly approved. As a result of the decision, EUR 0.2 million was recognised as items affecting comparability under fixed costs in the 2024 financial statements of Orthex Corporation.

Risks relating to currency fluctuations

Orthex has operations in several countries, so the company is exposed to transaction and translation risk related mainly to the Swedish krona, the Norwegian krone, the Danish krone, the British pound sterling and the U.S. dollar. The Group is typically not hedged against currency risk, except for certain large purchases under the Kökskungen brand. Fluctuations in exchange rates have had and may continue to have a material adverse effect on Orthex's results of operations.

Risks relating to liquidity

Orthex currently finances its business and investments with operational cash flows and debt financing. Sufficient cash flow is required for Orthex's business and maintaining its ability to service

its debt. There can be no assurance that Orthex will be able to secure financing to a sufficient extent and on competitive terms to finance its business and investments. Changes in the macroeconomic environment or in the general financial markets may have an adverse effect on the availability, price, and other terms of financing. Changes in the availability of equity and debt financing and in the terms of the financing available may influence Orthex's ability to invest in developing and growing its business in the future. If Orthex is not able to obtain financing on competitive terms or at all, this may have a material adverse effect on Orthex's business, financial position and/or results of operations.

ESG risks

Orthex assesses ESG risks as a part of its systematic risk management process and has identified the following most significant ESG risks: unfavourable changes in environmental and other related legislation, product safety related issues, and employee health and safety related risks. To mitigate these risks, Orthex actively monitors applicable legislation, uses accredited test laboratories for food contact testing, and systematic health and safety process has been implemented through the work environment committee. Failure to comply with environmental legislation, product safety regulations or laws and regulations applicable to employee health and safety may cause Orthex financial losses, undermine Orthex's business opportunities and harm Orthex's reputation.

Board of Directors' proposal for the use of the profit shown on the balance sheet and resolution on the distribution of dividends

According to the financial statements to be adopted for the financial year ended 31 December 2024, the parent company's distributable funds amount to EUR 21,204,617.74, including the profit for the period of EUR 5,946,289.82.

The Board of Directors proposes to the general meeting that based on the financial statements to be adopted for the financial year ended on 31 December 2024, shareholders be paid a dividend of EUR 0.22 per share totalling approximately EUR 3.9 million based on the number of registered shares in the company at the time of the proposal.

The dividend is proposed to be paid in two instalments as follows:

• The first instalment of the dividend amounting to EUR 0.11 per share will be paid to a shareholder who is registered in the company's shareholder register held by Euroclear Finland Oy on the record date of the first instalment of the dividend payment 2 May 2025. The Board of Directors proposes that the first instalment of the dividend be paid on 9 May 2025.
• The second instalment of the dividend amounting to EUR 0.11 per share will be paid in October 2025 to a shareholder who is registered in the company's shareholder register held by Euroclear Finland Oy on the record date of the second instalment of the dividend payment 1 October 2025. The Board of Directors proposes that the second

instalment of the dividend be paid on 8 October 2025. The Board of Directors further proposes that the Board be authorised to decide, if necessary, on a new record date and date of payment for the second instalment of the dividend should the rules of Euroclear Finland Oy or statutes governing the Finnish book-entry system change or otherwise so require.

There have been no significant changes in the parent company's financial position after the financial year-end. The company's liquidity is good, and the Board of Directors deems that the company's solvency will not be jeopardised by the proposed dividend distribution.

Events after the financial year

On 17 January 2025, Orthex disclosed the Shareholders' Nomination Board's proposals to the Annual General Meeting 2025 regarding the composition and remuneration of the Board of Directors.

The Shareholders' Nomination Board proposes that the Board of Directors would consist of five members and that Sanna Suvanto-Harsaae, Markus Hellström, Jyrki Mäki-Kala, and Anette Rosengren be re-elected to the Board and that Tuomas Yrjölä be elected as a new member to the Board, all for a term of office ending at the end of the Annual General Meeting 2026.

All director nominees have consented to their election and confirmed that they are independent of the company and its significant shareholders. Background information on the director nominees is available on the corporate website Board of Directors - Orthex Group.

As regards the remuneration, the Shareholders' Nomination Board proposes that the monthly remuneration of the members of the Board of Directors remains the same and that the Chair of the Board of Directors be paid a monthly fee of EUR 4,000 and other members of the Board of Directors a monthly fee of EUR 2,000. The Nomination Board further proposes an introduction of meeting-specific fees so that a meeting fee of EUR 250 is paid for a meeting held in the Board member's country of residence or as a remote meeting, and a meeting fee of EUR 500 for a meeting held elsewhere than in the Board member's country of residence and that reasonable travel and other expenses related to the Board work be reimbursed in accordance with the company's travel rules.

Market outlook

Global volatility, cost inflation, and consumer and customer uncertainty will affect the business environment. Orthex is closely following the financial performance of its retail customers as the prolonged consumer carefulness and changes in shopper trends can lead to fast changes in the customers' financial capabilities or even discontinuation of business.

To ensure effective implementation and adoption of its strategy, Orthex is constantly evaluating consumer trends, customer demands and market conditions. The strategy is designed to deliver the specified longterm financial targets. In addition, an overall focus on sustainability is at the heart of the business development.

In 2024, raw material prices stabilised at approximately the previous year's level. The price level in 2025 will be affected by the development of the demand for plastic raw materials, changes in sanctions against Russia, the potential escalation of the crisis in the Middle East, and logistic challenges. The European Central Bank's forecast says that the euro area economy is set to continue its gradual recovery although recent indicators suggest a weakening of growth in the short term. Orthex will closely monitor the general economic and market trends and the development of consumer confidence and purchasing power and will strive to navigate through changing conditions as efficiently as possible.

International distribution build-up is progressing according to plan, delivering a growing base of customers and point of sales throughout Europe. Orthex has continued strengthening its international sales organisation which is expected to support positive sales development in the Rest of Europe in 2025.

In 2025, Orthex will celebrate the 30th anniversary of the iconic SmartStoreTM Classic storage box range, which provides the company with an excellent opportunity to raise the international awareness of the SmartStoreTM brand and highlight the premium quality of the Classic storage boxes.

Russia's war against Ukraine or the crisis in the Middle East do not directly affect Orthex's business as Orthex does not sell products to Russia, Belarus, Ukraine, or Israel or source raw materials from these countries. However, geopolitical tensions cause disturbances in global supply chains and contribute to the general economic trend and consumers' purchasing power and behaviour, and, as a result, can have an impact on Orthex's business in 2025, especially in the important Nordics market.

Espoo, 11 March 2025

Board of Directors

Key figures

EUR thousand	2024	2023	2022
Net sales	89,734	85,945	84,048
Net sales growth, %	4.4%	2.3%	-5.2%
Constant currency net sales growth, %	4.3%	5.3%	-3.8%
Invoiced sales	92,291	87,989	85,794
Invoiced sales growth, %	4.9%	2.6%	-5.3%
Gross margin	25,704	24,320	17,919
Gross margin, %	28.6%	28.3%	21.3%
EBITDA	14,257	14,892	9,154
EBITDA margin, %	15.9%	17.3%	10.9%
EBITA	9,845	10,863	5,317
EBITA margin, %	11.0%	12.6%	6.3%
Operating profit	9,833	10,750	5,191
Operating profit margin, %	11.0%	12.5%	6.2%
Items affecting comparability	389	55	173
Adjusted gross margin	25,704	24,320	17,919
Adjusted gross margin, %	28.6%	28.3%	21.3%
Adjusted EBITDA	14,645	14,947	9,328
Adjusted EBITDA margin, %	16.3%	17.4%	11.1%
Adjusted EBITA	10,234	10,918	5,490
Adjusted EBITA margin, %	11.4%	12.7%	6.5%
Adjusted operating profit	10,222	10,805	5,364
Adjusted operating profit margin, %	11.4%	12.6%	6.4%
Earnings per share, basic (and diluted), EUR	0.34	0.39	0.12
FTEs	288	281	295
Personnel expenses	19,017	17,921	18,300

EUR thousand	2024	2023	2022
Key cash flows indicators
Net cash flows from operating activities	11,805	10,170	6,177
Operating free cash flows	10,391	12,353	5,774
Cash conversion, %	70.9%	82.6%	61.9%
Investments in tangible and intangible assets	-4,255	-2,594	-3,553
Financial position key figures
Net debt	20,286	22,317	26,028
Net debt / adjusted EBITDA last 12 months	1.4x	1.5x	2.8x
Net working capital	13,090	14,266	13,670
Capital employed excluding goodwill	34,356	34,462	33,487
Return on capital employed (ROCE), %	28.6%	31.6%	15.4%
Adjusted return on capital employed (ROCE), %	29.7%	31.8%	15.9%
Equity ratio, %	41.9%	40.2%	36.3%
Return on equity, %	17.4%	21.5%	6.9%

Share-related key figures

EUR	2024	2023	2022
Earnings per share, basic (and diluted)	0.34	0.39	0.12
Equity per share	2.02	1.94	1.67
Effective dividend yield, %	4.4%	3.9%	2.4%
Price per earnings	18.66	13.91	39.19
Closing share price on the last day of trading	5.00	5.40	4.68
Highest	7.30	5.76	11.29
Lowest	4.89	3.70	3.82
Market value of shares at the end of period, EUR million	88.8	95.9	83.1
Number of shares traded, pcs	2,164,530	1,497,211	5,653,412
Of weighted average number of shares, %	12.2%	8.4%	31.8%
Number of shares outstanding at the end of the period, pcs	17,758,854	17,758,854	17,758,854
Weighted average number of shares outstanding, pcs	17,758,854	17,758,854	17,758,854
Dividend payout per share	0.22 *)	0.21	0.11
Dividend payout per share of result, %	63.9%	54.1%	92.1%

*) Board of Directors' proposal

Reconciliation of alternative performance measures

EUR thousand	2024	2023	2022
Net sales growth, %
Net sales	89,734	85,945	84,048
Net sales growth, %	4.4%	2.3%	-5.2%
Constant currency net sales growth, %
Net sales	89,734	85,945	84,048
FX rate adjustment	-	83	-2,412
Constant currency net sales	89,734	86,029	81,636
Constant currency net sales growth, %	4.3%	5.3%	-3.8%
Invoiced sales
Net sales	89,734	85,945	84,048
Discounts and bonuses	4,004	3,715	3,182
Other sales and refunds	-1,447	-1,672	-1,437
Invoiced sales	92,291	87,989	85,794
Invoiced sales growth, %	4.9%	2.6%	-5.3%
Gross Margin
Net sales	89,734	85,945	84,048
Cost of sales	-64,030	-61,625	-66,129
Gross Margin	25,704	24,320	17,919
Gross Margin (%)	28.6%	28.3%	21.3%

EUR thousand	2024	2023	2022
EBITDA
Operating profit	9,833	10,750	5,191
Depreciation, amortisation, and impairment	4,423	4,142	3,964
EBITDA	14,257	14,892	9,154
EBITDA margin (%)	15.9%	17.3%	10.9%
EBITA
Operating profit	9,833	10,750	5,191
Amortisation and impairment	12	113	126
EBITA	9,845	10,863	5,317
EBITA margin (%)	11.0%	12.6%	6.3%
Operating profit
Operating profit	9,833	10,750	5,191
Operating profit margin, %	11.0%	12.5%	6.2%
Items affecting comparability / adjustments (EBITDA)
Restructuring related expenses	182	-	-
Other items affecting comparability	-	55	173
Tax audit 2022	207	-	-
Items affecting comparability / adjustments (EBITDA)	389	55	173

Reconciliation of alternative performance measures

EUR thousand	2024	2023	2022
Adjusted Gross Margin
Gross Margin	25,704	24,320	17,919
Adjusted Gross Margin	25,704	24,320	17,919
Adjusted Gross Margin (%)	28.6%	28.3%	21.3%
Adjusted EBITDA
Operating profit	9,833	10,750	5,191
Depreciation, amortisation and impairment	4,423	4,142	3,964
Adjustments (EBITDA)	389	55	173
Adj. EBITDA	14,645	14,947	9,328
Adj. EBITDA margin (%)	16.3%	17.4%	11.1%
Adjusted EBITA
Operating profit	9,833	10,750	5,191
Amortisation and impairment	12	113	126
Adjustments (EBITA)	389	55	173
Adj. EBITA	10,234	10,918	5,490
Adj. EBITA margin (%)	11.4%	12.7%	6.5%
Adjusted operating profit
Operating profit	9,833	10,750	5,191
Adjustments	389	55	173
Adj. operating profit	10,222	10,805	5,364
Adj. operating profit margin (%)	11.4%	12.6%	6.4%

EUR thousand	2024	2023	2022
Earnings per share, basic (and diluted), EUR
Profit for the period	6,110	6,892	2,121
Average number of shares	17,759	17,759	17,759
Earnings per share, basic (and diluted), EUR	0.34	0.39	0.12
Operating free cash flows
Adj. EBITDA	14,645	14,947	9,328
Investments in tangible and intangible assets	-4,255	-2,594	-3,553
Operating free cash flows	10,391	12,353	5,774
Cash conversion, %
Operating free cash flows	10,391	12,353	5,774
Adj. EBITDA	14,645	14,947	9,328
Cash conversion, %	70.9%	82.6%	61.9%
Net debt
Total interest-bearing liabilities	30,749	33,885	36,312
Cash and cash equivalents	-10,463	-11,568	-10,284
Net debt	20,286	22,317	26,028
Net debt/ Adj. EBITDA
Net debt	20,286	22,317	26,028
Adj. EBITDA. 12 months	14,645	14,947	9,328
Net debt/ Adj. EBITDA	1.4x	1.5x	2.8x

Reconciliation of alternative performance measures

EUR thousand	2024	2023	2022
Net working capital
Inventories	12,491	12,088	14,283
Trade and other receivables	17,960	17,866	13,387
Trade and other payables	-17,362	-15,687	-14,000
Net working capital	13,090	14,266	13,670
Capital employed excluding goodwill
Total Equity	35,828	34,436	29,711
Net debt	20,286	22,317	26,028
Goodwill	-21,758	-22,292	-22,252
Capital employed excluding goodwill	34,356	34,462	33,487
Return on capital employed (ROCE), %
Operating profit	9,833	10,750	5,191
Average capital employed excluding goodwill	34,409	33,975	33,746
Return on capital employed (ROCE), %	28.6%	31.6%	15.4%
Adjusted return on capital employed (ROCE), %
Adjusted operating profit	10,222	10,805	5,364
Average capital employed excluding goodwill	34,409	33,975	33,746
Adjusted return on capital employed (ROCE), %	29.7%	31.8%	15.9%

EUR thousand	2024	2023	2022
Equity ratio (%)
Total equity	35,828	34,436	29,711
Total assets	85,557	85,568	81,837
Equity ratio (%)	41.9%	40.2%	36.3%
Return on equity, %
Profit for the period	6,110	6,892	2,121
Total equity (average for the first and last day of the period)	35,132	32,074	30,754
Return on equity, %	17.4%	21.5%	6.9%

Calculation of key figures

IFRS key figures

Earnings per share, basic (and diluted)

= Profit for the period attributable to the owners of the parent / Weighted average number of shares outstanding

Alternative performance measures

Orthex presents alternative performance measures as additional information to financial measures presented in the consolidated income statement, consolidated balance sheet and consolidated statement of cash flows prepared in accordance with IFRS. In Orthex's view, alternative performance measures provide significant additional information on Orthex's results of operations, financial position and cash flows to management, investors, analysts, and other stakeholders.

Alternative performance measures should not be viewed in isolation or as a substitute to the IFRS financial measures. All companies do not calculate alternative performance measures in a uniform way, and therefore Orthex's alternative performance measures may not be comparable with similarly named measures presented by other companies.

Key figure	Formula
Constant currency net sales growth, %	Net sales growth calculated by using previous year's revenue translated at average foreign exchange rates for the current year
Invoiced sales	Product sales to resale customers excluding off invoice discounts, customer bonuses and cash discounts
Invoiced sales growth, %	Increase in invoiced sales
Gross margin	Net sales less Cost of sales
Gross margin, %	Gross margin / Net sales
EBITDA	Operating profit before depreciation, amortisation, and impairment
EBITDA margin, %	EBITDA / Net sales
EBITA	Operating profit before amortisation and impairment
EBITA margin, %	EBITA / Net sales
Operating profit	Operating profit
Operating profit margin, %	Operating profit / Net sales
Items affecting comparability	Material items outside ordinary course of business including restructuring costs, net gains, or losses from sale of business operations or other non-current assets, strategic development projects, external advisory costs related to capital reorganisation, impairment charges on non-current assets incurred in connection with restructurings, compensation for damages and transaction costs related to business acquisitions
Adjusted gross margin	Gross margin excluding items affecting comparability
Adjusted gross margin, %	Adjusted gross margin / Net sales
Adjusted EBITDA	EBITDA excluding items affecting comparability
Adjusted EBITDA margin, %	Adjusted EBITDA / Net sales
Adjusted EBITA	EBITA excluding items affecting comparability
Adjusted EBITA margin, %	Adjusted EBITA / Net sales
Adjusted operating profit	Operating profit excluding items affecting comparability
Adjusted operating profit margin, %	Adjusted operating profit / Net sales
Net cash flows from operating activities	Net cash from operating activities as presented in the consolidated statement of cash flows
Operating free cash flows	Adjusted EBITDA less investments in tangible and intangible assets

Key figure	Formula
Cash conversion, %	Operating free cash flows / Adjusted EBITDA
Investments in tangible and intangible assets	Investments in tangible and intangible assets as presented in the consolidated statement of cash flows
Net debt	Current and non-current interest-bearing liabilities less cash and cash equivalents
Net debt / adjusted EBITDA last 12 months	Net debt / Adjusted EBITDA
Net working capital	Inventories, trade, and other receivables less trade and other payables
Capital employed excluding goodwill	Total equity and net debt and less goodwill
Return on capital employed (ROCE), %	Operating profit / Average capital employed excluding goodwill
Adjusted return on capital employed (ROCE), %	Adjusted operating profit / Average capital employed excluding goodwill
Equity ratio, %	Total equity / Total assets
Return on equity, %	Result for the period / Total equity (average for the first and last day of the period)
Share-related key figures

Equity per share, EUR	Total equity attributable to the equity holders of the parent / Number of outstanding shares at the end of the financial year
Effective dividend yield, %	Dividend/share / Price of share at the end of the accounting period
Price per earnings, EUR	Closing price of share at the end of the financial year / Earnings per share
Market value of shares at the end of period	Number of shares at the end of accounting period x Price of the share at the end of accounting period
Dividend payout per share of result, %	(Dividend/share) / Earnings per share

ANNUAL REVIEW SUSTAINABILITY GOVERNANCE FINANCIAL REVIEW

Consolidated Financial Statements, IFRS

Consolidated income statement

EUR thousand	Note	Jan 1 - Dec 31 2024	Jan 1 - Dec 31 2023
Net sales	2	89,734	85,945
Cost of sales		-64,030	-61,625
Gross margin		25,704	24,320
Other operating income	3	19	811
Selling and marketing expenses		-9,982	-9,237
Administrative expenses		-5,907	-5,143
Operating profit		9,833	10,750
Financial income and expenses	6	-2,066	-2,231
Profit before taxes		7,768	8,520
Income taxes	7	-1,658	-1,628
Profit for the period		6,110	6,892
Profit for the period attributable to:
Equity holders of the parent		6,110	6,892
Earnings per share for profit attributable to the equity holders of the parent:
Earnings per share, basic (and diluted), EUR		0.34	0.39

Consolidated statement of comprehensive income

EUR thousand	Note	Jan 1 - Dec 31 2024	Jan 1 - Dec 31 2023
Profit for the period		6,110	6,892
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Translation differences		-948	85
Items that will not be reclassified to profit or loss:
Remeasurement gains (+) / losses (-) from defined
benefit plans	5	-40	-298
Other comprehensive income for the period, net of tax		-988	-213
Total comprehensive income for the period		5,121	6,679
Total comprehensive income attributable to:
Equity holders of the parent		5,121	6,679

Consolidated statement of financial position

EUR thousand	Note	31 Dec 2024	31 Dec 2023
Assets
Non-current assets
Intangible assets	8	21,759	22,303
Property, plant and equipment	9	15,125	13,942
Right-of-use assets	10	6,746	6,999
Other non-current assets		104	107
Deferred tax assets	7	701	695
Total non-current assets		44,435	44,046
Current assets
Inventories	13	12,491	12,088
Trade and other receivables	14	17,960	17,866
Derivative financial instruments	11	6	-
Income tax receivables		202	-
Cash and cash equivalents	11	10,463	11,568
Total current assets		41,123	41,522
Total assets		85,557	85,568

EUR thousand	Note	31 Dec 2024	31 Dec 2023
Equity and liabilities
Equity attributable to the equity holders of the parent company
Share capital		80	80
Invested unrestricted equity fund		7,851	7,851
Retained earnings		29,281	26,941
Translation differences		-1,384	-436
Total equity	11	35,828	34,436
Non-current liabilities
Loans from credit institutions	11	16,391	19,391
Lease liabilities	10,11	6,242	6,629
Pension liabilities	5,11	3,644	3,613
Deferred tax liabilities	7	782	796
Total non-current liabilities		27,058	30,429
Current liabilities
Loans from credit institutions	11	3,000	3,000
Lease liabilities	10,11	1,473	1,252
Trade and other payables	15	17,362	15,687
Derivative financial instruments	11	52	41
Income tax liabilities		783	723
Total current liabilities		22,670	20,703
Total liabilities		49,729	51,132
Total equity and liabilities		85,557	85,568

Consolidated statement of changes in equity

Equity attributable to the equity holders of the parent company		Invested unrestricted		Translation
EUR thousand	Share capital	equity fund	Retained earnings	differences	Total equity
1 Jan 2024	80	7,851	26,941	-436	34,436
Profit for the period			6,110		6,110
Translation differences				-948	-948
Remeasurement gains (+) / losses (-) from defined benefit plans			-40		-40
Total comprehensive income for the period			6,069	-948	5,121
Transactions with owners:
Dividends paid			-3,729		-3,729
31 Dec 2024	80	7,851	29,281	-1,384	35,828
1 Jan 2023	80	7,851	22,301	-521	29,711
Profit for the period			6,892		6,892
Translation differences				85	85
Remeasurement gains (+) / losses (-) from defined benefit plans			-298		-298
Total comprehensive income for the period			6,593	85	6,679
Transactions with owners:
Dividends paid			-1,953		-1,953
31 Dec 2023	80	7,851	26,941	-436	34,436

Consolidated statement of cash flows

EUR thousand	Note	1 Jan - 31 Dec 2024	1 Jan - 31 Dec 2023
Cash flows from operating activities
Profit before taxes		7,768	8,520
Adjustments:
Depreciation, amortisation and impairment	4	4,423	4,142
Financial income and expenses	6	2,066	2,230
Other adjustments		-269	-206
Cash flows before changes in working capital		13,988	14,686
Changes in working capital
Decrease (+) / increase (–) in trade and other receivables		-97	-4,383
Decrease (+) / increase (–) in inventories		-404	2,196
Decrease (–) / increase (+) in trade and other payables		1,915	1,346
Cash flows from operating activities before financial items and taxes		15,402	13,845
Interests paid		-1,781	-1,918
Income taxes paid		-1,815	-1,757
Net cash flows from operating activities		11,805	10,170
Cash flows from investing activities
Investments in tangible and intangible assets		-4,255	-2,594
Net cash flows from investing activities		-4,255	-2,594

EUR thousand	Note	1 Jan - 31 Dec 2024	1 Jan - 31 Dec 2023
Cash flows from financing activities
Repayment of lease liabilities	10	-1,601	-1,329
Repayment of short-term borrowings	11	-3,000	-3,000
Dividends paid	16	-3,729	-1,953
Net cash flows from financing activities		-8,330	-6,283
Net change in cash and cash equivalents		-779	1,293
Net foreign exchange differences	11	-326	-9
Cash and cash equivalents at 1 January		11,568	10,284
Cash and cash equivalents at 31 December		10,463	11,568

Notes to the consolidated financial statements

1. Accounting principles for the consolidated financial statements

Basic information about the Company

Orthex is principally engaged in producing and marketing household products. Orthex Group is a Nordic producer of household products that make everyday life easier for the consumer. Orthex sells its products to major retailers that sell the products to consumers. Orthex has customers in more than 40 countries and on four continents. It has three factories of its own and it launches a variety of functional products every year.

The consolidated financial statements of Orthex Corporation and its subsidiaries (collectively, the Group) for the year ended 31 Dec 2024 were authorised for issue in accordance with a resolution of the Board of Directors on 11 March 2025. According to the Finnish Companies Act, shareholders have the option of approving or rejecting the financial statements at the Annual General Meeting held after their publication. The Annual General Meeting also has the opportunity to make a decision to amend the financial statements. Orthex Corporation (the Company or the parent) is a public limited liability company incorporated and domiciled in Finland and whose shares are quoted on Nasdaq Helsinki since 29 March 2021. The registered office is located at Suomalaistentie 7 in Espoo.

Basis of preparation

Orthex's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and have been prepared in accordance with the IAS and IFRS standards and SIC and IFRIC interpretations in force on 31 Dec 2024. The notes to the consolidated financial statements also comply with the Finnish accounting and corporate legislation.

The consolidated financial statements have been prepared on a historical cost basis, except for financial assets and financial liabilities that are measured and presented at fair value through profit or loss and defined benefit pension plans that are measured and presented at fair value.

The consolidated financial statements are presented in euros and all values are rounded to the nearest thousand, except when otherwise indicated.

In addition, the company has prepared a version of the financial statements in accordance with ESEF requirements, which is marked with XBRL codes. The file can be downloaded from the company's website.

Amendments and annual improvements to IFRS standards

The Orthex Group has adopted amendments and annual improvements to IFRS standards that came into effect on 1 January 2024. The amendments apply to the following standards: amendments to IAS 1 regarding the classification of liabilities as current or non-current and non-current liabilities with covenants, amendments to IFRS 16 regarding lease liability in a sale and leaseback transaction, amendments to IAS 7 and IFRS 7 regarding supplier financing arrangements.

Amendments and annual improvements have not had a major impact on the consolidated financial statements.

Standards issued but not yet effective

Orthex applies new and amended standards and interpretations as they become effective on or after 1 January 2025. The Group assesses the potential impacts of these changes on the consolidated financial statements once the final versions of the new standards have been approved.

The following new and amended standards have been issued and become effective on 1 January 2025 or later.

• IFRS 19 Subsidiaries without Public Accountability
• IFRS 18 Presentation and Disclosure in Financial Statements
• Annual Improvements Volume 11: The 2024 amendments apply to the following standards: IFRS 7 Financial Instruments: Disclosures and Related Application Guidance, IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, IAS 7 Statements of Cash Flows.
• Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)

Significant accounting judgements, estimates and assumptions

The preparation of the Group's consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

In the process of applying the Group's accounting policies, management has made various judgements. Those which management has assessed to have the most significant effect on the amounts recognised in the consolidated financial statements are discussed in the individual notes.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are also described in the individual notes of the related financial statement line items. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

Basis of consolidation

The consolidated financial statements comprise the financial statements of the Group and its subsidiaries as at 31 Dec 2024. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Control exists when Orthex has a majority of voting rights in a subsidiary or can otherwise demonstrate having control in a subsidiary.

Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. All Group companies follow uniform accounting policies.

All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

Foreign currencies

The consolidated financial statements have been prepared in euros that is both the operational and the presentation currency of the Group's parent company. Foreign currency transactions are translated into euros using the exchange rate at the date of the transaction. Receivables and liabilities denominated in foreign currency are translated into euros using the closing rate. Exchange differences arising on settlement or translation are recognised in the income statement.

The income statement and balance sheet items of the subsidiaries operating outside the euro zone are initially recognised in the operational currencies of their operating environments. In the consolidated financial statements, the income statements of foreign subsidiaries are translated into euros using the average exchange rates of the period. The balance sheet items of the subsidiaries are translated using the closing rates. The exchange differences are recognised in other comprehensive income and presented under translation differences in equity.

When a foreign subsidiary is disposed of, the translation differences accumulated in equity are transferred to profit or loss as part of the gain or loss on disposal.

Information about subsidiaries

The consolidated financial statements of the Group include:

Name	Principal activities	Country of incorporation	31 Dec 2024	31 Dec 2023
Oy Orthex Finland Ab	Producing and marketing of household products	Finland	100%	100%
Orthex Sweden Holding AB	Producing and marketing of household products	Sweden	100%	100%
Orthex Sweden AB	Producing and marketing of household products	Sweden	100%	100%
Orthex Kitchen AB	Producing and marketing of household products	Sweden	100%	100%
Orthex Norway AS	Producing and marketing of household products	Norway	100%	100%
Orthex Denmark A/S	Producing and marketing of household products	Denmark	100%	100%
Gastromax Limited	Producing and marketing of household products	UK	100%	100%
Orthex Germany GmbH	Producing and marketing of household products	Germany	100%	100%
Orthex France SARL	Producing and marketing of household products	France	100%	100%

Group ownership is presented in the table above in percentages.

Climate related issues

Climate commitments are part of Orthex's sustainability strategy. Orthex constantly strives to minimize its impact on the environment and climate. The products we manufacture are of high quality and made to last for years or even decades. Even after a product has worn out, it can be recycled, and the material reused for another purpose. The progress in the sustainability work is part of the CEO's and the Management Team's incentive plan (more information in note 5, in the Remuneration report 2024, and on the corporate website).

Climate change brings both business risks and opportunities to Orthex. Unfavourable changes in environmental laws or other related legislation, as well as factors related to product safety and employee health and safety may cause financial losses.

In the consolidated financial statements, climate-related matters may affect, for example, goodwill, as profitability, growth and the discount rate are defined as the key variables for impairment testing. The Group has assessed and identified climate-related risks in connection with the strategy-based profitability figures together with other variables affecting the business (more information in note 8).

The Group has an external loan of EUR 19.5 million and the terms and conditions of the financial loan have sustainability-related measures

related to production energy consumption and waste percentage in production (more information in note 11).

Orthex's strategy together with the adaptability and resilience related to climate change also creates opportunities by promoting the transition to a low-carbon economy. The Group's strategy has been influenced by the opportunities related to recycled and renewable products. The global climate targets and increase in related regulations may increase sales of Orthex's environmentally-friendly products.

More information on climate-related matters is presented in the sustainability section of the Group's annual and sustainability report.

2. Net sales

Segment information

Orthex Group is a Nordic producer of household products that make everyday life easier for the consumer. Orthex Group has customers in more than 40 countries and on four continents. It has three factories of its own and annually launches new products with different functionalities.

The profitability of the Group is followed by the chief operative decision maker that is the CEO supported by the Group Management Team on the aggregated level of the Group for which financial information is available. The reports followed by the management are consistent with Orthex's consolidated IFRS figures. Due to the management structure and how the business is operated and managed, the Group as a whole is determined to be one operating segment that is also the reportable segment.

Accounting policy

Orthex applies the IFRS 15 Revenue from Contracts with Customers standard. The principle is that sales are recognised at an amount that reflects the consideration, which Orthex expects to receive in exchange for transferring goods or services to a customer. Sales are recognised when the control of goods or services is transferred to a customer. Control is transferred at one point in time.

Sale of household products

Orthex's revenue mainly consists of selling of household products to major retailers that sell Orthex's products to consumers. Each product sold by Orthex as part of an order is a distinct performance obligation and the products have similar terms of sale. Orthex does not provide any services relating to the products sold.

Revenue from the sales of household products is recognised at a point in time based on the delivery terms when the control of the products is transferred to the customer i.e. when the performance obligation is satisfied. The revenue recognised reflects the consideration to which Orthex expects to be entitled to. Net sales is adjusted for exchange rate differences of foreign-currency denominated sales and volume rebates provided for the customers. The normal payment terms are 15 to 60 days upon delivery. Products sold are non-refundable.

No single customer's share of the net sales was at least 10% of the Group's net sales in 2024 and 2023.

Variable consideration

Variable consideration consists of volume rebates and cash discounts.

The sales prices are based on price lists but Orthex provides retrospective volume rebates for certain retailers that are based on growth in sales volumes. Volume rebates are calculated based on expected annual purchase volumes from the customer. The amount of volume rebates is estimated at the beginning of the year and adjusted at each reporting date. Orthex estimates the amount of variable payments using the expected value method. Orthex applies the requirements on constraining estimates of variable consideration in order to determine the amount recognised as revenue.

Contract balances

Orthex records a trade receivable when Orthex's right to payment is unconditional (i.e. only the passage of time is required before payment of the consideration is due). Relating to trade receivables, refer to Notes 11 and 14.

The contracts with retailers do not include a right to return for any unsold products and therefore, no refund liabilities are recorded.

Accounting estimates and judgements

Orthex has applied management judgement relating to timing of revenue recognition and estimating the amount of variable consideration. The timing of the revenue recognition is based on the delivery terms of the products to the customer. For certain delivery terms, Orthex is required to make assumptions of the timing when control of the goods is transferred to the customer. In addition, the amount of volume rebates included as an adjustment to net sales requires estimation before the uncertainty relating to the amount to be recognised is resolved.

The disaggregation of revenue by geography in the table below is based on the locations of the customers.

Net sales by geography

EUR thousand	2024	2023
Nordics	69,148	67,146
Rest of Europe	19,749	18,031
Rest of the world	837	768
Total	89,734	85,945

Net sales by product category

EUR thousand	2024	2023
Storage	61,797	58,630
Kitchen	18,796	18,136
Home & Garden	9,140	9,179
Total	89,734	85,945

3. Other operating income

EUR thousand	2024	2023
Electric support	-	741
Government grants	5	61
Net gain on disposal of property, plant and equipment	1	-
Other	13	9
Total	19	811

Accounting treatment of government grants

Electric support consists of Swedish state electricity support for the period 1 October 2021–30 September 2022. Government grants consist mainly of state subsidies due to sick leave. Government grants received are not subject to repayment terms.

4. Operating expenses

Operating expenses by nature
EUR thousand	2024	2023
Materials and supplies	50,448	46,501
Change in inventory	-404	2,196
External services	2,710	2,403
Marketing	2,228	1,940
Employee benefits	19,017	17,921
Depreciation, amortisation and impairment	4,423	4,142
Other expenses	1,497	904
Total	79,919	76,006

Depreciation, amortisation and impairment by asset class

Other intangible assets 12	113
	1,453
Right-of-use assets 1,688
Machinery and equipment 2,542	2,396
Buildings 183	180
EUR thousand 2024	2023

Fees paid to companies' auditors

Total	257	220
Non-audit services	5	12
Audit fees	252	208
EUR thousand	2024	2023

The appointed auditor for 2024 and 2023 was Ernst & Young Oy.

5. Employee benefits

Personnel expenses

EUR thousand	2024	2023
Included in cost of sales:
Wages and salaries	8,251	7,725
Social security costs	1,774	1,655
Pension costs	932	921
Included in selling and marketing expenses:
Wages and salaries	4,457	4,501
Social security costs	623	607
Pension costs	345	322
Included in cost of administrative expenses:
Wages and salaries	1,689	1,641
Social security costs	421	366
Pension costs	525	182
Total	19,017	17,921

Personnel (FTE) in average

FTE by function	2024	2023
Production	148	143
Warehouse	60	56
Sales	51	52
Administration	17	19
Marketing	11	10
Total	288	281

Management and Board remuneration

The top management comprises the Management Team. The remuneration paid based on the work performed consists of the following. The amounts disclosed in the table are the amounts paid during the reporting period related to key management personnel.

Remuneration of key management personnel of the Group, excluding the CEO

EUR thousand	2024	2023
Salaries and rewards	1,174	1,131
Pension costs	225	217
Severance pay	90	-
Total	1,490	1,348

Current termination provisions in the Management Team members' contracts have a period of notice of 4 months. A member of the Management Team is entitled to a severance pay equivalent to 4 months' salary due to the termination of the management contract. The Group has no other long-term benefits related to key management personnel.

Remuneration of the CEO

Total	569	437
Pension costs	79	66
Salaries and fees	490	371
EUR thousand	2024	2023

Current termination provisions in the CEO's executive contract have a period of notice of 6 months and the CEO is entitled to compensation for termination of the executive contract corresponding to 6 months' salary.

Remuneration of the members of the Board of Directors

EUR thousand	2024	2023
Sanna Suvanto-Harsaae	48	48
Markus Hellström	24	24
Jyrki Mäki-Kala	24	24
Anette Rosengren	24	16
Jens-Peter Poulsen 1)	20	24
Satu Huber 2)	-	8
Total	140	144

1) Member of the Board until 31 October 2024 2) Member of the Board until 18 April 2023

The non-executive directors do not receive pension entitlements from the Group.

Pension liabilities

Orthex Group provides pension benefits in accordance with local statutory regulation. The current plans mainly consist of defined contribution based plans. The contributions payable under defined contribution based plans are recognised as expenses in the income statement for the period to which the payments relate. In defined contribution based plans, Orthex does not have a legal or constructive obligation to pay further contributions, in case the payment recipient is unable to pay the retirement benefits.

In Sweden, Orthex Group has a pension plan classified as a defined benefit based plan. For this plan, Orthex may incur obligations after the payment of the contribution. Pension liabilities represent the present value of future cash flows from the benefits payable and the liability recognised on the balance sheet are pension liabilities at the closing. The present

value of pension liabilities has been calculated using the projected unit credit method (PUC). Pension liabilities are recognised based on external actuarial calculations as of 31 Dec 2024 and 31 Dec 2023.

The cost of providing pensions is charged to the income statement as to spread the service cost over the service lives of employees. The net interest is presented in financial items and the rest of the income statement effect as pension cost. The discount rate assumed in calculating the present value of pension liabilities is the market yield of high-quality corporate bonds. Their maturity substantially corresponds to the maturity of the pension liability. Actuarial gains and losses are recognised in comprehensive income in the income statement. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss related to a curtailment is recognised immediately in profit or loss.

Critical accounting estimates and judgements, assumptions used to determine future pension obligations

The present value of the pension liabilities is based on actuarial calculations that use several assumptions. Any changes in these assumptions will impact the carrying amount of pension liabilities.

Pension liabilities

EUR thousand	31 Dec 2024	31 Dec 2023
Pension liabilities	3,644	3,613
Total	3,644	3,613

Net pension liabilities recognised in the income statement

EUR thousand	2024	2023
Current service cost	-97	-39
Interest cost on benefit obligation	-116	-119
Pension payments	118	120
Total	-94	-39

Movements in the obligation

EUR thousand	2024	2023
Obligation at 1 Jan	3,613	3,179
Amounts recognised in profit and loss
Service cost, benefits earned during the year	97	39
Interest expense (+) / income (-)	116	119
Pension payments	-118	-120
Amounts recognised in other comprehensive income
Translation differences	-114	7
Actuarial losses (+) / gains (-)	51	389
Obligation at 31 Dec	3,644	3,613

Key assumptions and sensitivity analyses

The cost of the defined benefit pension plan and the present value of pension liabilities are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its long-term nature, pension liabilities are highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. Changes in the general level of interest rates and the market yield of high-quality bonds have an impact on the present value of pension liabilities. When the level of interest rates decreases, the present value of pension liabilities increases. The discount rate is set by referencing the yield on mortgage bonds and the duration of pension liabilities which is 16 years.

The mortality assumptions are based on publicly available mortality tables for Sweden. Those mortality tables tend to change only at intervals in response to demographic changes. Future salary increases and pension increases are based on expected future inflation rates for the respective countries.

The sensitivity of pension liabilities to changes in the principal assumptions

Actuarial assumptions	Change in assumption	Impact on pension liabilities increase	Impact on pension liabilities decrease
2024
Discount rate (%)	+/- 0.5%	-365	326
Salary increase (%)	+/- 0.5%	-169	149
Inflation (%)	+/- 0.5%	-253	233
2023
Discount rate (%)	+/- 0.5%	-323	452
Salary increase (%)	+/- 0.5%	-138	123
Inflation (%)	+/- 0.5%	-227	209

The sensitivity analyses above have been determined based on a method that extrapolates the impact on pension liabilities as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analyses are based on a change in a significant assumption, keeping all other assumptions constant. The sensitivity analyses may not be representative of an actual change in pension liabilities as it is unlikely that changes in assumptions would occur in isolation of one another.

The Group expects to contribute approximately EUR 132 thousand to its defined benefit pension plans in 2025.

Principal actuarial assumptions

(%)	31 Dec 2024	31 Dec 2023
Discount rate	3.5%	3.3%
Salary increase	2.8%	2.6%
Income base amount	2.8%	2.6%
Inflation	1.8%	1.6%

6. Financial income and expenses

EUR thousand	2024	2023
Interest on debts and borrowings	-1,240	-1,404
Interest expense on lease liabilities	-547	-522
Losses from changes in the fair value of derivative instruments	-	-22
Exchange rate differences related to financial items	-89	136
Other financial expenses	-189	-418
Total financial expenses	-2,066	-2,231
Total financial income and expenses	-2,066	-2,231

7. Income taxes

Current income tax

Orthex's income tax expense consists of current and deferred taxes. The current tax expense is calculated using the tax rates that are enacted or substantively enacted at the reporting date in the countries where Orthex operates. The current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.

The major components of income tax expense for the years ended 31 Dec 2024 and 31 Dec 2023 are:

Consolidated income statement

Total	-1,658	-1,628
Change in deferred taxes	16	-168
Taxes from previous years	-12	-18
Current income tax charge	-1,662	-1,442
EUR thousand	2024	2023

Consolidated statement of other comprehensive income

EUR thousand	2024	2023
Deferred taxes related to items recognised in OCI during the year:
Remeasurement of net loss/(gain) on actuarial gains and losses	11	77
Total	11	77

Reconciliation of tax expense and the accounting profit multiplied by Finland's domestic tax rate

EUR thousand	2024	2023
Profit before taxes	7,768	8,520
Tax calculated at nominal Finnish tax rate of 20% (2023: 20%)	-1,554	-1,704
Tax rates in foreign jurisdictions	-82	-68
Taxes from previous years	-12	-18
Non-deductible expenses	-12	-39
Tax free income	3	-
Non-deductible expenses from previous years	0	27
Unrecognized tax losses (-) / Utilization of tax losses (+)	-	173
At the effective income tax rate of 21.3% (2023: 19.1%)	-1,658	-1,628
Income tax expense reported in the consolidated income statement	-1,658	-1,628

Deferred taxes

Deferred tax assets and deferred tax liabilities are differences between the tax bases of assets and liabilities and their carrying amounts. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted at the reporting date.

Orthex records a deferred tax liability for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences and any unused tax losses carried forward to the extent that it is deemed probable that they can be utilised against

future taxable profit. Deferred tax assets are reviewed at each reporting date. In case it is no longer probable that sufficient taxable profit will be available for the deferred tax asset to be utilised, the carrying amount of deferred tax asset is reduced.

Deferred tax relating to items recognised outside profit or loss is recognised in correlation to the underlying transaction either in OCI or directly in equity.

Orthex offsets deferred tax assets and deferred liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. Orthex has offset deferred taxes related to IFRS 16 fixed assets and lease liabilities.

Accounting estimates and judgements

Management judgement is applied in determining the deferred tax assets as Orthex is required to make estimations about future taxable profit, the recoverability of the tax losses carried forward and potential changes to tax laws in the countries where Orthex operates.

At Dec 2024, Orthex has no tax losses carried forward or deferred tax assets relating to taxable losses. A deferred tax asset amounting to EUR 196 thousand (2023: EUR 272 thousand) is recorded relating to interest expenses carried forward.

In addition to the above, the most significant temporary differences arise from leases, timing difference of depreciations in the financial statements and taxation, defined benefit pension plans and transaction costs on external loans.

Deferred taxes related to IFRS 16 right-of-use assets and leasing liabilities are netted in the consolidated balance sheet, but in the breakdown of changes in deferred taxes below, they are presented gross.

Deferred taxes 2024

EUR thousand	Balance at 1 Jan 2024	Charged to income statement	Charged to OCI	Balance at 31 Dec 2024
Deferred tax assets
Internal margin of inventory	0	39		39
Interest expenses carried forward	272	-76		196
Pension liabilities	214	-38	4	180
Leases	1,582	-33		1,549
Financial instruments	6	-6		0
Other	21	66		87
Netting of deferred tax assets and liabilities	-1,400	51		-1,349
Total	695	2	4	701

EUR thousand	Balance at 1 Jan 2024	Charged to income statement	Charged to OCI	Balance at 31 Dec 2024
Deferred tax liabilities
Tangible and intangible assets	774	-15		759
Rights of use assets	1,400	-51		1,349
Financial instruments	22	1		23
Netting of deferred tax assets and liabilities	-1,400	51		-1,349
Total	796	-14	-	782

Deferred taxes 2023

EUR thousand	Balance at 1 Jan 2023	Charged to income statement	Charged to OCI	Balance at 31 Dec 2023
Deferred tax assets
Interest expenses carried forward	279	-7		272
Pension liabilities	186	-51	79	214
Leases	1,559	23		1,582
Financial instruments	-	6		6
Other	139	-114	-3	21
Netting of deferred tax assets and liabilities	-1,402	2		-1,400
Total	760	-140	75	695

EUR thousand	Balance at 1 Jan 2023	Charged to income statement Charged to OCI		Balance at 31 Dec 2023
Deferred tax liabilities
Tangible and intangible assets	743	31		774
Rights of use assets	1,402	-2		1,400
Financial instruments	26	-4		22
Netting of deferred tax assets and liabilities	-1,402	2		-1,400
Total	769	27	-	796

8. Intangible assets

Orthex's intangible assets with finite useful lives includes software. Initially, intangible assets are measured at cost. After the initial recognition, intangible assets are recorded at cost less any accumulated amortisation and accumulated impairment losses.

Orthex's intangible assets with finite useful lives are amortised on a straight-line basis over their expected useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation expense on intangible assets with finite useful lives is recognised in the statement of profit or loss in the expense category that is consistent with the function of the intangible assets.

The expected useful lives and residual values are evaluated at least at the end of each reporting period.

The expected useful lives for the asset classes are as follows:

• Software 3-10 years

In case any intangible assets are derecognised upon disposal, any gain or loss resulting from the derecognition of the asset is included in the statement of profit or loss.

Research and development costs

Research costs are expensed as they incur. Development costs are capitalised when the criteria in IAS 38 is met. Orthex has not capitalised any development costs since the capitalisation criteria has not been met. Orthex's intangible assets with an indefinite useful life consist of goodwill. The accounting policies for impairment of goodwill have been described below.

Reconciliation of beginning and ending balances by classes of intangible assets

EUR thousand	Goodwill	Other intangible assets	Total
Acquisition cost
Balance at 1 Jan 2023	22,252	1,218	23,471
Translation differences	39	-	39
Balance at 31 Dec 2023	22,292	1,218	23,510
Translation differences	-533	-	-533
Balance at 31 Dec 2024	21,758	1,218	22,977
Accumulated amortisation and impairment
Balance at 1 Jan 2023	-	1,093	1,093
Amortisation and impairment		113	113
Balance at 31 Dec 2023	-	1,207	1,207
Amortisation and impairment		12	12
Balance at 31 Dec 2024	-	1,218	1,218
Carrying amount 1 Jan 2023	22,252	125	22,377
Carrying amount 31 Dec 2023	22,292	12	22,303
Carrying amount 31 Dec 2024	21,758	0	21,759

Goodwill

Goodwill is not amortised but it is tested for impairment annually and whenever there is an indication of impairment. Goodwill is measured at initial cost less any accumulated impairment losses. The majority of the goodwill at the time of transition in the Group's balance sheet arose in connection with the formation of the Group in 2015.

Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the goodwill may be impaired. The carrying amount of a cash-generating unit that includes goodwill is compared to the recoverable amount, which is the higher of value in use and fair value less costs to sell.

For impairment testing purposes, goodwill is allocated to two cashgenerating units, Finland and Nordics. The recoverable amount is the higher of CGU's fair value less costs of disposal and its value in use. The recoverable amount is compared with its carrying amount to determine potential impairment. In case the carrying value of goodwill exceeds the recoverable amount, an impairment is recognised in the income statement.

Previously recognised impairment losses on goodwill are not reversed in future periods.

The value in use calculation is based on a DCF model. The recoverable amounts of CGU's are based on value in use calculations, where the estimated future cash flows of CGUs are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

The cash flows are determined using a 5-year cash flow forecasts, which are based on Orthex's business plan that is based on Orthex's past experience as well as future expected market trends. The projected cash flows have been updated to reflect the budgeted demand for products.

Impairment losses are recognised in the statement of profit or loss in expense categories consistent with the function of the impaired asset.

Orthex has performed its annual impairment test for 31 Dec 2024 and 31 Dec 2023. Based on the impairment calculations made, there was no indication of impairment of goodwill for the above mentioned periods.

Carrying amount of goodwill allocated to each of the CGUs:

EUR thousand	31 Dec 2024	31 Dec 2023
Finland	5,462	5,462
Nordics	16,296	16,829
Total	21,758	22,292

Accounting estimates and judgements

The key assumptions used for the value in use calculations are profitability growth rate, discount rate (pre-tax WACC) and long-term growth rate.

Key parameters used in impairment calculations

		31 Dec 2024	31 Dec 2023
%	Finland	Nordics	Finland	Nordics
Profitability growth rate	11.8	19.4	15.3	12.0
Discount rate, pre-tax	14.3	13.6	14.2	13.5
Long-term growth rate	1.0	1.0	1.0	1.0

Profitability growth rate - The assumptions relating to profitability growth rate (average EBITDA growth over the 5 years forecast period) are based on organic growth under normal market situation, general development in household product market and long-term estimates made by the Group management.

Discount rate - Orthex uses the pre-tax WACC as a discount factor in the calculations. The discount rate reflects the total cost of equity and debt while taking into consideration the specific risks related to the assets.

Long-term growth rate - The cash flows beyond the five-year period are estimated by extrapolating the cash flow estimates using a growth factor which is in line with the target inflation of the European Central Bank.

Sensitivity analyses

The Group has assessed the sensitivity of the impairment testing to the effect of the most critical assumptions used in the calculation. The Group has tested the sensitivity of the calculation with respect to the discount rate, profitability growth rate and long-term growth rate that are determined as the key variables used in impairment testing.

When assessing the recoverable amounts of cash generating units, management believes that no reasonably possible change in any of the key variables used would lead to a situation where the recoverable amount of the units would fall below their carrying amount.

9. Property, plant and equipment

Property, plant and equipment are recorded at historical cost less accumulated depreciations and impairment losses, if applicable. Subsequent improvement costs are included in the carrying amount of the asset or recognised as a separate asset only when the future economic benefits associated with the cost are probable and the cost can be measured reliably. Maintenance and repair costs are expensed as incurred.

Depreciation is calculated on a straight-line basis over the expected useful lives of the assets. Land and water areas are not depreciated due to indefinite useful lives. The estimated useful lives of the tangible assets are as follows:

• Buildings:	25-40 years
• Machinery and equipment:	5-15 years
• Production moulds:	5-15 years
• Other tangible assets:	3-5 years

Expected useful lives are reviewed at each financial year end and in case there is a significant difference to the previous estimates, the useful lives are adjusted accordingly. Orthex has not recorded any impairment losses relating to property, plant and equipment.

Any gain or loss arising in derecognition of an asset is included in the statement of profit or loss when the asset is derecognised.

Reconciliation of beginning and ending balances by classes of assets

	Land and		Machinery and	Construction	Other tangible
EUR thousand	water areas	Buildings	equipment	in progress	assets	Total
Acquisition cost
Balance at 1 Jan 2023	86	6,273	61,061	1,511	47	68,979
Additions		9	2,772	1,076		3,857
Transfers			-	-864		-864
Translation differences		-	-25	2		-23
Balance at 31 Dec 2023	86	6,283	63,808	1,725	47	71,949
Additions		167	2,267	4,159		6,593
Transfers		-	-	-2,493		-2,493
Translation differences		-10	-157	-27		-194
Balance at 31 Dec 2024	86	6,439	65,918	3,364	47	75,854
Accumulated depreciation and impairment
Balance at 1 Jan 2023	-	5,020	50,369	-	43	55,432
Depreciation and impairment		180	2,396			2,575
Balance at 31 Dec 2023	-	5,200	52,764	-	43	58,007
Depreciation and impairment		183	2,540			2,722
Balance at 31 Dec 2024	-	5,382	55,304	-	43	60,730
Carrying amount 1.1.2023	86	1,253	10,692	1,511	4	13,547
Carrying amount 31.12.2023	86	1,083	11,043	1,725	4	13,942
Carrying amount 31.12.2024	86	1,057	10,613	3,364	4	15,125

10. Leases

Orthex's leased assets mainly comprise of manufacturing plants, office premises and machinery and equipment. At contract inception, Orthex determines whether the contract is, or contains, a lease. A contract is determined to be a lease contract if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. A right-of-use asset and a lease liability corresponding to the present value of the future lease payments are recognised in the consolidated statement of financial position at the commencement date of the lease.

Lease liabilities

At the commencement date of the lease, Orthex recognises lease liabilities measured at the present value of the future lease payments to be made over the lease term. When calculating the present value of the future lease payments, the interest rate implicit in the lease is applied if readily available. In most of Orthex's lease contracts the interest rate implicit in the lease is not available. In such cases, Orthex uses its incremental borrowing rate which reflects the rate at which Orthex could borrow an amount similar to the value of the rightof-use asset, in the same currency, over the same term, and with similar collateral. The incremental borrowing rate comprises the risk free reference rate, credit spread and country and currency premium if applicable.

At the commencement date of the lease, the measurement of the lease liability includes fixed lease payments and potential expected payments under residual guarantees. The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When

adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Penalties for terminating the lease are included if the lease term reflects the exercise of a termination option.

The lease term is defined as the period when the lease is noncancellable. The lease term includes periods covered by an option to extend the lease, if Orthex is reasonably certain to exercise that option, and periods covered by an option to terminate the lease, if Orthex is reasonably certain not to exercise the option to terminate the lease. Orthex has some lease contracts for which the lease term is cancellable with only a short notification period. For the open-ended lease contracts, Orthex estimates the lease term based on the importance of the asset to Orthex's operations considering the location and the availability of suitable alternatives and costs relating to termination of the lease such as negotiation and relocation costs.

The carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the underlying asset.

Measurement and recognition of right-of-use assets

Right-of-use assets are measured at cost which comprises the amount of the lease liability and the lease payments made at or before the commencement of the lease.

The right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment. The depreciation starts at the commencement date of the lease and the right-of-use assets are depreciated on a straight-line basis over the shorter period of lease term and useful life of the underlying asset. The right-of-use asset is remeasured with a corresponding remeasurement of the lease liability.

Orthex applies the recognition exemption provided for leases for which the underlaying asset is of low value. The assessment whether Orthex applies the exemption is made on a lease-by-lease basis. Lease payments for leases of low value assets are expensed in the income statement on a straight-line basis. Lease payments for leases of low value assets have not had a material impact on Orthex's results. Orthex does not have short-term leases for which the lease term is 12 months or less.

Accounting estimates and judgements

The most significant management judgements relate to evaluating the lease term for leases that include options to extend the lease or options to terminate the lease and to leases for which the lease term is open-ended. Management estimates the lease term for the contracts using future outlooks of the business as well as contract specific facts and circumstances. Additionally, management judgment is also applied in determining the incremental borrowing rate.

Carrying amounts of right-to-use assets recognised and the movements during the period

EUR thousand	Buildings	Machinery and equipment	Total
As at 1 Jan 2023	6,033	978	7,011
Additions and revaluations	1,218	213	1,431
Depreciation and impairment	-1,030	-422	-1,453
Translation differences	132	-123	9
As at 31 Dec 2023	6,354	645	6,999
Additions and revaluations	1,031	605	1,636
Depreciation and impairment	-1,118	-569	-1,688
Translation differences	-234	32	-202

Carrying amounts of lease liabilities and movements during the period

EUR thousand	2024	2023
As at 1 Jan	7,881	7,770
Additions and revaluations	1,636	1,431
Accretion of interest	547	522
Payments	-2,121	-1,857
Translation differences	-229	15
As at 31 Dec	7,715	7,881
Current lease liabilities	1,473	1,252
Non-current lease liabilities	6,242	6,629

Amounts recognised in the consolidated income statement

EUR thousand	2024	2023
Depreciation and impairment of right-of-use assets	-1,688	-1,453
Interest expenses from lease liabilities	-547	-522
Total amount recognised in profit or loss	-2,235	-1,975

Orthex's total cash outflow from leases amounted to EUR 2,121 thousand in 2024 and EUR 1,857 thousand in 2023.

Orthex has no more off-balance sheet leases after applying IFRS 16.

The maturity analysis of lease liabilities is disclosed in Note 11.

11. Financial assets and financial liabilities

Orthex recognises financial instruments based on their characteristics and classifies them to different categories as defined below. Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

Financial assets are initially recognised at fair value at trade date. At initial recognition, Orthex classifies financial assets as subsequently measured at amortised cost, fair value through profit or loss, and fair value through other comprehensive income (OCI).

The subsequent classification is dependent on the contractual cash flow characteristics of the financial asset and the group's business model for managing them.

Financial assets at amortised cost

Orthex recognises financial assets at amortised cost if the business model of holding the assets is solely collecting contractual cash flows from payments of principal and interest at specified dates.

Financial assets at amortised cost are initially recognised and measured at fair value plus related transaction costs. The financial assets are subsequently measured by using the effective interest rate (EIR) method. These assets are subject to impairment. Any gains and losses thereof are recognised in the statement of profit or loss when the asset is derecognised, modified or impaired.

For Orthex, the financial assets at amortised cost are the most significant category of financial assets. The category includes trade receivables, for which the expected credit losses are assessed as impairment. The expected credit losses are described below in the credit risk section.

Financial assets at fair value through profit or loss

Orthex recognises financial assets at fair value through profit or loss when the assets are held for trading or are mandatorily required to be measured at fair value. Additionally, Orthex recognises at fair value through profit or loss when the financial assets are initially designated upon initial recognition to be measured at fair value through profit or loss. These financial assets are classified as held for trading if the assets are acquired for sole purpose of receiving cash flows from the asset sales.

Any gains or losses recognised from the net changes in the fair value of these financial assets are recognised in the statement of profit or loss.

Orthex classifies derivative instruments to be measured at fair value through profit or loss at inception.

Financial assets at fair value through other comprehensive income (OCI)

Financial assets at fair value through other comprehensive income include investments to equity instruments. Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit or loss when the right of payment has been established.

Upon the initial recognition Orthex may make an irrevocable election to classify an equity investment as equity instrument designated at fair value through other comprehensive income in accordance with IAS 32, when the assets are not held for trading. Any change in the fair value of the asset and possible dividends are recognised in the other comprehensive income in the statement of comprehensive income.

Financial assets designated at fair value through OCI are not subject to impairment assessment.

Orthex does not have any instruments designated at fair value through OCI.

Impairment and expected credit losses (ECL)

Orthex estimates the expected credit losses from their short-term receivables such as trade receivables and accrued revenues at each reporting date. Orthex recognises the expected credit loss allowance as impairment from these assets, which is defined as the difference between the contractual cash flows and the expected cash flows Orthex expects to receive.

Orthex applies a simplified approach method for the assessment of the expected credit loss impairment. Orthex uses the lifetime expected credit losses as a credit loss allowance. Any receivable, which is considered to be more than 90 days past due are considered to be defaulted and impaired and are written off from the receivable balance.

Cash and cash equivalents

Cash and short-term deposits in the statement of financial position comprise cash at banks and on hand and short-term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value. All of the Orthex's bank accounts are in well established low risk banks to reduce the risk in relation to the insolvency issues from banks.

For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group's cash management.

Available cash and liquidity position

EUR thousand	31 Dec 2024	31 Dec 2023
Cash and cash equivalents	10,463	11,568
Total cash and cash equivalents	10,463	11,568

Cash at banks earns interest at floating rates based on daily bank deposit rates.

At 31 Dec 2024, the Group had available EUR 7.0 million (31 Dec 2023: EUR 7.0 million) of undrawn committed borrowing facilities.

The effect of exchange rates on cash and cash equivalents by

Total	-326	-9
EUR/GBP	3	2
EUR/DKK	0	-2
EUR/NOK	-51	-63
EUR/SEK	-278	55
EUR thousand	31 Dec 2024	31 Dec 2023
currency

Financial liabilities

Financial liabilities are recognised at fair value at trade date and are classified to be subsequently measured at either amortised cost or at fair value through profit or loss.

The subsequent measurement designation is based on the obligations arising from the contractual nature of the financial liability.

Financial liabilities at amortised cost

Orthex classifies financial liabilities to be measured at amortised cost when the financial liabilities involve contractual obligations for payments and are not held for trading. The financial liabilities are initially recognised at fair value less any related transaction costs. After initial recognition, these liabilities are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

This category is most relevant to Orthex and it includes interest-bearing loans and borrowings, and the Group's trade and other payables.

Financial liabilities at fair value through profit or loss

Orthex classifies financial liabilities at fair value through profit or loss when the financial liabilities are held for trading, or when the financial liability is designated upon initial recognition to be measured at fair value through profit or loss. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied.

Orthex classifies derivative instruments, which are not designated as hedging instruments, to be measured at fair value through profit or loss at inception.

Derecognition of financial instruments

Orthex derecognises financial instruments when, and only when the contractual rights or responsibilities arising from contractual obligations are discharged, cancelled, or they expire.

In the case of the financial assets, a transfer of rights or impairment of assets qualifies for derecognition of the asset.

In case of a financial liability, when an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

Offsetting financial instruments

Orthex does not offset financial instruments.

Tabular presentation of financial instruments by classification 31 Dec 2024

Financial assets
EUR thousand	Note	Fair value through profit and loss	Fair value through OCI	At amortised cost	Book value
31 Dec 2024
Current financial assets
Trade receivables	14			16,678	16,678
Cash and cash equivalents				10,463	10,463
Derivative financial instruments	12	6			6
Total		6	-	27,141	27,147
Total financial assets		6	-	27,141	27,147

Financial liabilities

		Fair value through	Fair value	At amortised
EUR thousand	Note	profit and loss	through OCI	cost	Book value
31 Dec 2024
Non-current financial liabilities
Loans from credit institutions				16,391	16,391
Lease liabilities	10			6,242	6,242
Total		-	-	22,633	22,633
Current financial liabilities
Loans from credit institutions				3,000	3,000
Lease liabilities	10			1,473	1,473
Trade payables	15			10,589	10,589
Derivative financial instruments	12	52			52
Total		52	-	15,062	15,114
Total financial liabilities		52	-	37,694	37,747

Tabular presentation of financial instruments by classification 31 Dec 2023

Financial assets
EUR thousand	Note	Fair value through profit and loss	Fair value through OCI	At amortised cost	Book value
31 Dec 2023
Current financial assets
Trade receivables	14			16,031	16,031
Cash and cash equivalents				11,568	11,568
Total		-	-	27,598	27,598
Total financial assets		-	-	27,598	27,598

Financial liabilities

		Fair value through	Fair value	At amortised
EUR thousand	Note	profit and loss	through OCI	cost	Book value
31 Dec 2023
Non-current financial liabilities
Loans from credit institutions				19,391	19,391
Lease liabilities	10			6,629	6,629
Total		-	-	26,020	26,020
Current financial liabilities
Loans from credit institutions				3,000	3,000
Lease liabilities	10			1,252	1,252
Trade payables	15			9,302	9,302
Derivative financial instruments	12	41			41
Total		41	-	13,555	13,596
Total financial liabilities		41	-	39,574	39,615

Derivatives

Derivatives not designated as hedging instruments reflect the negative change in fair value of those foreign exchange forward contracts that are not designated in hedge relationships, but are, nevertheless, intended to reduce the level of foreign currency risk for expected sales and purchases. In addition, the group has hedged part of its long-term interest-bearing liabilities with an interest rate swap.

Orthex utilises derivatives for hedging purposes, but does not apply hedge accounting.

Financial risk management

Orthex's financial risk management involves a combination of responsive actions the management is actively seeking to ensure sound financial operations and stability. This note explains Orthex's exposure to financial risks and how these risks could affect Orthex's future financial performance. The Group's overall financial risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial performance.

The Group's financial risks can be classified into two separate categories. Orthex is affected by market risks and other risks including credit risk and liquidity risk. The management analyses the Group's risk position periodically at each reporting date and takes collective measures to counter these assessed risk exposures.

Risk concentrations

Orthex analyses the financial risks and risk concentrations related to its operations. Risk concentrations identified as a result of this assessment are described in connection with the descriptions of market and credit risks.

Sensitivity analysis

As part of the risk assessment, the management has performed sensitivity analysis on relevant market risks, such as interest rate risk and foreign exchange risk. Calculation methods and assumptions used for sensitivity analysis are further explained in the detailed sensitivity analysis sections alongside interest rate risk and foreign exchange risk assessments.

Derivative financial instruments may be used to hedge certain risk exposures. The Group's financial risk management is carried out by the finance department in accordance with the Group Treasury Policy, which is approved by the Board of Directors.

Interest rate sensitivity

Based on the sensitivity analysis, if interest rates had been 1.0 percentage points higher with all other variables held constant, the recalculated post-tax profit for the period and equity would have been EUR 0.1 million smaller in 2024 and EUR 0.1 million smaller in 2023. Interest rate sensitivity has been calculated by shifting the interest curve by 1.0 percentage points. The interest position includes all external variable rate loans and interest rate swaps.

Foreign exchange risk

Orthex Group operates in several countries. Orthex is mainly exposed to transaction risk and translation risk associated with the Swedish krona, the Norwegian krona, the Danish krona, the US dollar and the British pound sterling. Transaction risk associated with subsidiaries outside the euro area consists primarily of trade receivables and trade payables from subsidiaries arising in the operational business of the Group companies. Orthex hedges transaction risks with currency derivatives, in accordance with its Treasury Policy.

Translation risk arises, when the parent company's investments in subsidiaries outside euro area are converted into euros. The Group's net investment to units outside the euro area consist mainly of the investments in subsidiaries in Sweden. Translation risk is currently not hedged.

The currency position resulting from the financial instruments in accordance with IFRS 7 consists of trade receivables, trade payables and cash and cash equivalents. The net currency risk has been taken into account in the table if the transaction currency is other than the company's functional currency. The table takes into account the currencies to which the company is significantly exposed.

The Group's net currency position at 31 December

The net currency position resulting from the financial instruments in accordance with IFRS 7

EUR thousand	2024	2023
EUR-SEK	5,715	8,943
EUR-NOK	4,131	4,533
EUR-USD	423	-21

Market risks

Interest rate risk

The Group's bank loans comprise of long-term floating rate loans and interest-bearing credit limit facilities. Due to the Euribor-tied loans, Orthex is subject to the cash flow risk arising from floating rate loans. To manage the interest rate risk, Orthex may use interest rate swaps, as needed, in order to reduce the cash flow risk arising from floating rate loans. With this course of action, Orthex might aim to limit the impact of interest rate volatility in the Group's financial expenses to acceptable levels. Interest rates of bank loans were 5.4%—5.6% in 2024 and 5.1%—6.1 % in 2023.

Foreign exchange rate sensitivity

Changes in consolidation exchange rates affect company's income statement and cash flow statement. As approximately 49% of the company's revenues and 55% of costs occur in operational currencies other than euro, the translation risk is significant for the company. A change of 10% in the annual average foreign exchange rates would have caused a 6.8% (6.5%) change in 2024 consolidated sales and 6.9% (6.7%) reverse changes in costs in the consolidated sales in euros. The translation risk is not hedged as a rule as the company's business consists of continuous operations in various currency areas. However, USD purchases of Orthex Kitchen AB are partially hedged against SEK. The most significant translation risk exposures in the subsidiaries are in the Swedish krona, the Norwegian krona, the Danish krona, the US dollar and the British pound sterling.

Commodity price risk

The Group is exposed to variations in prices of raw materials and of supplies. Orthex's raw material purchases consist mainly of various types of plastic materials. The market value for virgin plastic and the underlying inputs cause changes on the acquired plastic materials pricing.

Commodity price risk sensitivity

A 10 per cent change upwards or downwards in virgin plastic prices would have effects, before taxes, of EUR +/– 2.3 million to income statement in year 2024 (2023: EUR +/–2.2 million). Commodity risks are not managed using financial derivative instruments.

Sensitivity analysis

Sensitivity to market risks (before taxes) in accordance with IFRS 7

	2024		2023
EUR thousand	Income statement	Equity	Income statement	Equity
+/- 10% change in virgin plastic prices	-/+ 2,344	-/+ 2,344	-/+ 2,205	-/+ 2,205
+/- 10% change in EUR/SEK exchange rate	+/- 572	+/- 572	+/- 897	+/- 897
+/- 10% change in EUR/NOK exchange rate	+/- 413	+/- 413	+/- 453	+/- 453
+/- 10% change in EUR/USD exchange rate	+/- 42	+/- 42	-/+ 2	-/+ 2
+/- 1% points parallel shift in interest rates	-/+ 109	-/+ 109	-/+ 124	-/+ 124

+10% increase in EUR/SEK exchange rate would have a EUR 572 thousand effect in income statement.

At the end of 2024, the total Group floating rate liability position consists of floating rate liabilities of EUR 19.5 million (2023: EUR 22.5 million).

Other risks

Credit risk

Orthex's credit risk exposure is mainly related to client payment behaviour. Orthex estimates the expected credit losses from their current receivables such as trade receivables and accrued revenues at each reporting date. Orthex recognises the expected credit loss allowance as impairment from these assets, which is defined as the difference between the contractual cash flows and the expected cash flows Orthex expects to receive.

Details regarding the expected credit loss assessment include:

• Analysis of receivables held in different portfolios.
• Analysis of receivables are prepared based on customer characteristics.
• An ECL analysis using both historical credit losses and an estimation on future credit losses (forward-looking parameters).
• Default probability-% per group, based on historical information on the aging of the receivables and forward-looking parameters.

The decision-making criteria used by management to measure the ECL includes:

• 1. Historically Orthex has minimal amount of bad debt.
• 1. Major clients are big retailers and credit risk relating to the retailers is minimal.
• 1. In export sales, Orthex uses credit collaterals to minimize the credit risk.
• 1. Average order amounts are small and Orthex has the ability to react quickly whenever there are signals from clients' liquidity problems.

Orthex's customers are major retailers with solid credit ratings. Orthex monitors the credit ratings relating to its largest clients continuously. The risk for credit loss relating to the major retailers is considered to be low. For other clients, Orthex has credit collateral to manage the credit risk relating to the purchases made by those customers.

The management uses historical outlook to assess the expected credit losses in addition to the current economic outlooks and client specific analysis. The maximum exposure to credit risk is the carrying amount of accounts receivables. In Orthex's business, the average size of a single purchase order is small giving Orthex the ability to react to clients' liquidity problems quickly.

Orthex applies a simplified approach method for the assessment of the expected credit loss impairment. The calculation of expected credit losses (ECL) is based on historical data and, for parameters concerning the future, on the payment behaviour of customers. Any receivable, which is considered to be more than 90 days past due are considered to be defaulted and impaired and are written off from the receivable balance.

Orthex does not have any major risk concentrations regarding the Group's receivables and the trading partners are all well established companies with historically stable payment behaviour towards business transactions with Orthex.

Trade receivables consist mainly of receivables from customers. Impairment losses of trade receivables recognised in profit or loss amounted to EUR 290 thousand during the year 2024. In 2023, impairment losses of trade receivables were EUR 15.7 thousand. The maturity distribution of trade receivables is presented in Note 14.

Liquidity risk

Management of liquidity risk aims to ensure that Orthex can meet its cash outflows and other financial obligations. Orthex's financing requirement is covered by both optimising of operating activities and external financing in order to ensure that Orthex has continually sufficient liquidity or has access to committed credit facilities. Liquidity risks are monitored and managed centrally in the Group's finance department. Orthex has financial covenants in place under a EUR 7 million credit facility and a EUR 19.5 million loan agreement with Nordea Bank Plc. According to the terms and conditions of the financial covenants, the gearing ratio is to be below 125% and the net debt to EBITDA ratio below 3.25x. The covenants must be met on an ongoing basis and are tested and reported to the lender on a quarterly basis. Orthex's financial forecasts do not indicate any breach of the financial covenants.

Maturity analysis

The maturity of financial liabilities is monitored regularly. As at 31 Dec 2024, Orthex had cash and cash equivalents of EUR 10.6 million (31 Dec 2023: EUR 11.6 million). In addition, Orthex had access to unused credit facilities and bank overdrafts of EUR 7.0 million as of 31 Dec 2024 (31 Dec 2023: EUR 7.0 million). In 2022, Orthex entered into a 3+1+1 year credit facility agreement of EUR 32.5 million with Nordea Bank Plc. The credit facility agreement includes a 3+1+1-year term loan of EUR 25.5 million and a revolving credit facility of EUR 7.0 million. Orthex extended the maturity of the loan in 2024.

At 31 Dec 2024, EUR 25.5 million of the term-loan was in use. The term loan is currently repaid in bi-annual installments of EUR 1.5 million. Loans from the financial institutions include covenants. At 31 Dec

2024, the financial covenants were: net debt / adjusted EBITDA, capital expenditure, and adjusted EBITDA / net financial charges. The terms of loans from financial institutions also include indicators related to sustainability, which are related to the energy consumption of production and the percentage of scrap. The covenant terms have been complied with on 31 Dec 2024.

The interest margin is variable and depends on the ratio of net debt and adjusted EBITDA. Orthex has given business mortgages amounting to EUR 48.1 million as of 31 Dec 2024 as a security for the loans from financial institutions. According to specific terms and conditions of the bank loan agreements, the most significant transactions require a prior written approval by the financial institutions, including ordinary terms and conditions protecting the creditor.

Interest-bearing liabilities

EUR thousand	31 Dec 2024	31 Dec 2023
Non-current interest-bearing liabilities
Loans from credit institutions	16,391	19,391
Lease liabilities	6,242	6,629
Pension liabilities	3,644	3,613
Total non-current interest-bearing liabilities	26,277	29,633
Current interest-bearing liabilities
Loans from credit institutions	3,000	3,000
Lease liabilities	1,473	1,252
Total current interest-bearing liabilities	4,473	4,252
Total interest-bearing liabilities	30,749	33,885

The table below summarises the maturity profile of the Group's financial liabilities based on contractual undiscounted payments.

Maturity distribution table

31 Dec 2024

Total	15,966	4,975	4,789	11,977	1,130	1,756	40,595
Deridative financial instruments	52						52
Trade payables	10,589						10,589
Lease liabilities	1,872	1,600	1,491	1,230	1,130	1,756	9,080
Interest	488	410	332	254	-	-	1,482
Loans from credit institutions	2,966	2,966	2,966	10,493	-	-	19,391
EUR thousand	2025	2026	2027	2028	2029	Later	Total

31 Dec 2023

Total	14,956	5,291	5,024	15,323	1,083	2,862	44,540
Deridative financial instruments	41						41
Trade payables	9,302						9,302
Lease liabilities	1,794	1,590	1,440	1,355	1,083	2,862	10,123
Interest	847	728	612	495	-	-	2,682
Loans from credit institutions	2,973	2,973	2,973	13,473	-	-	22,391
EUR thousand	2024	2025	2026	2027	2028	Later	Total

Changes in liabilities arising from financing activities

2024

EUR thousand	1 Jan	Lease changes	Cash flows	Translation differences	Other	Total 31 Dec
Non-current loans from credit institutions	19,391		-1,500		-1,500	16,391
Non-current lease liabilities	6,629	1,324	-	-229	-1,482	6,242
Current loans from credit institutions	3,000		-1,500		1,500	3,000
Current lease liabilities	1,252	312	-2,121	-44	2,072	1,473
Total	30,272	1,636	-5,121	-273	591	27,105

2023

EUR thousand	1 Jan	Lease changes	Cash flows	Translation differences	Other	Total 31 Dec
Non-current loans from credit institutions	22,363		-1,500		-1,473	19,391
Non-current lease liabilities	6,480	1,308	-	-11	-1,148	6,629
Current loans from credit institutions	3,000		-1,500		1,500	3,000
Current lease liabilities	1,290	123	-1,857	-4	1,700	1,252
Total	33,133	1,431	-4,857	-15	580	30,272

Fair value measurement

The Group measures financial instruments such as derivatives at fair value at each balance sheet date. Fair value related disclosures for financial instruments and non-financial assets that are measured at fair value or where fair values are disclosed in this note. Aside from this note, additional fair value related disclosures, including the valuation methods, significant estimates and assumptions are also provided in Note 8.

Orthex measures fair value for its financial instruments based on the most similar possible alternative that resembles the underlying instrument. The fair value of a financial instrument is the best estimate of the price on the markets that would be received when an asset is sold or paid when a liability is transferred between participants at a measurement date. It is assumed that the transaction is either performed in a principal market or through other market maker, which would give the best available price for the financial instrument.

Orthex uses valuation techniques for the fair value measurement, which are most accurate for the circumstances and for which sufficient data is easily and readily available, maximising the use of observable data and minimising the use of unobservable inputs.

Capital management

Capital structure is assessed regularly by the Board of Directors and managed operationally by the CFO. Capital structure management in Orthex comprises both equity and interest-bearing debt. As at 31 Dec 2024, the equity attributable to shareholders was EUR 36.0 million (31 Dec 2023: EUR 34.4 million) and the amount of interest-bearing liabilities as at 31 Dec 2024 were EUR 30.7 million (31 Dec 2023: EUR 33.9 million). The objectives are to safeguard the ongoing business operations and to optimise the cost of capital. In order to achieve this overall objective, the Group's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches of the financial covenants of any interest-bearing loans and borrowing in the current or previous period.

To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Group monitors capital using the equity ratio, which is counted as total equity / total assets.

EUR thousand	31 Dec 2024	31 Dec 2023
Equity	35,828	34,436
Balance sheet total	85,557	85,568

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 Dec 2024 and 31 Dec 2023.

Fair-value related disclosures for financial instruments and nonfinancial assets that are measured at fair value or where fair values are

The following tables provide the fair value measurement hierarchy of

disclosed, are summarised in addition to this note in Note 11.

Fair value measurement hierarchy

the Group's assets and liabilities:

12. Fair value hierarchy

All the assets and liabilities for which the fair value is measured and disclosed are categorised on three levels of fair value hierarchy.

Level 1

Financial instruments on level 1 are quoted on public and active markets for similar instruments. The prices are instantly available and the valuation does not require judgements.

• Orthex does not have financial instruments on level 1.

Level 2

Financial instruments on level 2 are not directly observable, but the valuation technique uses the lowest level inputs in the valuation estimates, which are readily available on a public market or through other market makers.

This category includes:

• Loans from credit institutions

• Derivative instruments

Level 3

Financial instruments on level 3 require valuation techniques where the lowest level valuation inputs are not available directly, and are thus unobservable. The measurement require independent consideration and judgements from the management. The valuation techniques, related inputs and assumptions for Level 3 fair value instruments are explained in detail alongside the tabular presentation of the fair values.

• Orthex does not have financial instruments on level 3.

For financial instruments that are measured at fair value on a recurring basis, Orthex determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting date.

For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above.

Fair value measurement hierarchy for assets as at 31 Dec 2024

EUR thousand	Level 1	Level 2	Level 3
Financial assets measured at fair value
Derivative financial instruments
Foreign exchange forward contracts and interest rate swaps		6

Fair value measurement hierarchy for liabilities as at 31 Dec 2024

EUR thousand	Level 1	Level 2	Level 3
Financial liabilities for which fair values are disclosed
Interest-bearing loans and borrowings
Loans from credit institutions		19,391
Lease liabilities		7,715
Foreign exchange forward contracts		52

There have been no transfers between Level 1 and Level 2 during 2024.

Fair value measurement hierarchy for assets as at 31 Dec 2023

EUR thousand	Level 1	Level 2	Level 3
Financial assets measured at fair value
Derivative financial instruments
Foreign exchange forward contracts and interest rate swaps		-

Fair value measurement hierarchy for liabilities as at 31 Dec 2023

EUR thousand	Level 1	Level 2	Level 3
Financial liabilities for which fair values are disclosed
Interest-bearing loans and borrowings
Loans from credit institutions		22,391
Lease liabilities		7,881
Foreign exchange forward contracts and interest rate swaps		41

There were no transfers between Level 1 and Level 2 during 2023.

13. Inventories

Inventories are valued at the lower of cost and net realisable value. Costs incurred in bringing each product to its present location and condition are accounted for, as follows:

• Raw materials: purchase cost on a first-in/first-out basis
• Finished goods and work in progress: cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

EUR thousand	31 Dec 2024	31 Dec 2023
Raw materials	868	1,119
Work in progress	23	32
Finished goods	12,048	11,508
Net realisable value allowance	-448	-571
Total	12,491	12,088

14. Trade and other receivables

EUR thousand	31 Dec 2024	31 Dec 2023
Trade receivables	16,678	16,031
Other receivables	186	88
Prepaid expenses and accrued income	1,097	1,747
Total	17,960	17,866

Ageing analysis of trade receivables

EUR thousand	31 Dec 2024	31 Dec 2023
Not past due	16,006	14,987
Past due 1-60 days	890	1,026
Past due over 60 days	129	72
Impairment losses	-347	-55
Total	16,678	16,031

The impairment losses recognised on trade receivables during the year 2024 amounted to EUR 347 thousand (2023: EUR 55 thousand).

The loss allowance for trade receivables is based on the ageing of the accounts receivable. Historically, the amount of overdue trade receivables has been low and the amount of overdue receivables has not materially increased. The aim is to minimise credit risks by active credit management and using credit collaterals. The expected loss rate for all trade receivables is 2.0%.

Credit risks of trade receivables are presented in Note 11.

30 to 60 day terms

the financial year

six months

refer to Note 11.

15. Trade and other payables

Terms and conditions of the above payables:

EUR thousand	31 Dec 2024	31 Dec 2023
Trade payables	10,589	9,302
Other payables	1,301	1,058
Accrued expenses and deferred income
Wages, salaries and social costs	3,503	3,267
Customer rebates and commissions	1,166	1,018
Other	803	1,042
Total	17,362	15,687

• Trade payables are non-interest bearing and are normally settled on

• Other payables are non-interest bearing and have an average term of

• Interest related to loan is normally settled semi-annually throughout

For explanations on the Group's liquidity risk management processes,

16. Share capital and reserves

	Number of outstanding shares	Number of shares total	Share capital, EUR thousand	Invested unrestricted equity fund, EUR thousand
As at 1 Jan 2023	17,758,854	17,758,854	80	7 851
As at 31 Dec 2023	17,758,854	17,758,854	80	7,851
As at 1 Jan 2024	17,758,854	17,758,854	80	7,851
As at 31 Dec 2024	17,758,854	17,758,854	80	7,851

Earnings per share

The basic (and diluted) earnings per share is calculated by dividing the result for the financial year attributable to the parent company's shareholders by weighted average number of shares outstanding during the financial year.

Earnings per share, basic (and diluted)	2024	2023
Net profit attributable to equity owners of the parent company, EUR thousand	6,110	6,892
Weighted average number of shares	17,758,854	17,758,854
Earnings per share, basic (and diluted), EUR	0.34	0.39

Board proposal for distribution of assets

The Board of Directors of Orthex Corporation proposes to the Annual General Meeting on 29 April 2025 that shareholders will be paid a dividend of EUR 0.22 per share totalling approximately EUR 3.9 million. There have been no significant changes in the parent company's financial position after the financial year-end. The company's liquidity

is good, and the Board of Directors deems that the company's solvency will not be jeopardised by the proposed dividend distribution.

Shares and share capital

On 28 Feb 2021, the shareholders of the company decided with a unanimous decision to change the form of the company to a public limited liability company and to implement an increase in share capital by a capital increase to meet the required EUR 80,000 limit for a public limited liability company through a fund increase.

In connection with the listing, the company carried out an offering which consisted of a public offering which increased the amount of shares, including cancellation of treasury shares, by 17,358,854 shares in March 2021. The company has single share class and each share carry one vote at the Annual General Meeting and equal rights to dividend and other distribution of assets. The shares have no nominal value. All shares issued have been paid in full.

Invested unrestricted equity fund

Invested unrestricted equity fund consists of other investments similar to equity and the subscription price of shares to the extent that it has not been recorded in share capital according to specific resolution. According to the current Finnish Companies Act, subscription price of new shares is recognised in the share capital, unless it has not been, according to issuance resolution, fully or partly recognised in the invested unrestricted equity fund.

In connection with the listing, the company carried out an offering which consisted of a public offering in Finland, an institutional offering to institutional investors in Finland and in accordance with applicable laws, internationally; and personnel offering to employees of the group. With the share issue, the company raised gross proceeds of approximately EUR 10,000 thousand that was recognised in the invested unrestricted equity fund.

Treasury shares

Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group's own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognised in the unrestricted equity fund. At 31 Dec 2024, the company did not have any treasury shares.

17. Related party disclosures

Note 1 provides information about the Group's structure, including details of the subsidiaries. Orthex's related parties include the company's Board of Directors and their family members, the CEO and his family members, significant shareholders, and members of the Management Team and their family members. In connection with the listing of the company, Conficap Oy became the company's largest shareholder with a holding of 14.0% at year-end 2024. At the end of the financial year, the CEO together with his controlled entity owned 11.7 per cent of the Group's parent company's shares. The Group has not had transactions with related parties in the past or the preceding financial period.

Management remuneration

Remuneration to the members of the Board of Directors, the CEO and other members of the Management Team is presented in Note 5.

Other material business transactions

Dividends and return of capital are paid to the Group's board members and key management personnel based on the shares they hold.

18. Collaterals, commitments and contingent assets and liabilities

This Note presents information on items not included in calculations when preparing the financial statements.

EUR thousand	31 Dec 2024	31 Dec 2023
Guarantees and mortgages given on own behalf
Enterprise mortgages	49,042	50,065
Property mortgages	10,192	10,192
Other guarantees	105	102
Total	59,340	60,359

Tax audit 2022

In 2022, Orthex Corporation was subject to a tax audit regarding the financial years 2020 and 2021. The tax audit report included subsequent taxes and tax increases amounting to a total of EUR 0.3 million relating to the VAT deductibility of IPO related costs. The company disagreed with the interpretation made in the tax audit and filed a claim for adjustment to its taxation with the Assessment Adjustment Board of the Finnish tax authority. However, the company was requested to pay additional taxes in accordance with the interpretations set out in the tax audit report and the company paid the subsequent taxes and tax increases in June 2022. Orthex did not recognise the subsequent taxes and tax increases in the consolidated statement of comprehensive income. The Assessment Adjustment Board issued its decision on the company's claim for adjustment in February 2025 and the company's claim was partly approved. As

a result of the decision, EUR 0.2 million was recognised as items affecting comparability under fixed costs in the 2024 financial statements of Orthex Corporation.

19. Subsequent events

After the end of the financial year, the Group had no material events that could affect the decisions readers make based on the financial statements.

Parent company financial statements, FAS

Parent company income statement

EUR	Note	1 Jan - 31 Dec 2024	1 Jan - 31 Dec 2023
Net sales	2	840,000.00	840,000.00
Administrative expenses		-1,439,364.36	-1,313,057.17
Operating profit		-599,364.36	-473,057.17
Interest income from group companies		671,710.16	632,065.24
Dividends received from group companies		4,000,000.00	7,000,000.00
Other interest and financial income from others		-	59,602.27
Interest and financial expenses to others		-1,222,795.35	-1,578,150.03
Financial income and expenses	5	3,448,914.81	6,113,517.48
Profit (loss) before appropriations and taxes		2,849,550.45	5,640,460.31
Appropriations
Group contribution	6	3,500,000.00	3,400,000.00
Income taxes	7	-403,260.63	-404,458.31
Profit (loss) for the period		5,946,289.82	8,636,002.00

Parent company balance sheet

EUR	Note	31 Dec 2024	31 Dec 2023	EUR	Note	31 Dec 2024	31 Dec 2023
ASSETS				SHAREHOLDERS' EQUITY AND LIABILITIES
NON-CURRENT ASSETS				SHAREHOLDERS' EQUITY
				Share capital		80,000.00	80,000.00
Investments				Invested unrestricted equity fund		8,430,263.84	8,430,263.84
Holdings in subsidiaries	8	25,295,133.29	25,295,133.29	Retained earnings		6,828,064.08	1,921,421.42
Receivables from subsidiaries	8	11,638,197.22	11,166,487.06	Profit (loss) for the period		5,946,289.82	8,636,002.00
Investments total		36,933,330.51	36,461,620.35	SHAREHOLDERS' EQUITY TOTAL	11	21,284,617.74	19,067,687.26
NON-CURRENT ASSETS TOTAL		36,933,330.51	36,461,620.35	LIABILITIES
CURRENT ASSETS				Long-term liabilities
				Loans from credit institutions	12	16,500,000.00	19,500,000.00
Short-term receivables				Long-term liabilities total		16,500,000.00	19,500,000.00
Income tax receivables		12,815.89	-
Receivables from subsidiaries	9	3,900,000.00	5,481,359.46	Short-term liabilities
Prepayments and accrued income	10	70,397.70	261,157.41	Loans from credit institutions	12	3,000,000.00	3,000,000.00
Short-term receivables total		3,983,213.59	5,742,516.87	Income tax liabilities		-	404,458.31
				Trade payables		10,255.78	18,646.07
Cash and cash equivalents		179,594.17	148,760.99	Other payables		48,574.77	46,026.94
				Accruals and deferred income	13	252,689.98	316,079.63
CURRENT ASSETS TOTAL		4,162,807.76	5,891,277.86	Short-term liabilities total		3,311,520.53	3,785,210.95
ASSETS TOTAL		41,096,138.27	42,352,898.21	LIABILITIES TOTAL		19,811,520.53	23,285,210.95

SHAREHOLDERS' EQUITY AND LIABILITIES TOTAL 41,096,138.27 42,352,898.21

Parent company cash flow statement

EUR	Note	1 Jan - 31 Dec 2024	1 Jan - 31 Dec 2023
Cash flows from operating activities
Profit before appropriations and tax		2,849,550.45	5,640,460.31
Adjustments:
Financial income and expenses	5	-3,448,914.81	-8,113,517.48
Other adjustments		-	0.01
Cash flows before changes in working capital		-599,364.36	-2,473,057.16
Changes in working capital
Decrease (+) / increase (–) in trade and other receivables		588,362.57	2,160,533.96
Decrease (–) / increase (+) in trade and other payables		-69,232.11	-439.23
Cash flows from operating activities before financial items and taxes		-80,233.90	-312,962.43
Interests and other financing expenses paid		-1,233,980.42	-1,578,150.03
Dividends received		5,494,941.67	5,088,672.52
Income taxes paid		-820,534.83	-462,066.80
Net cash flows from operating activities		3,360,192.52	2,735,493.26
Cash flows from investing activities
Net cash flows from investing activities		-	-

EUR	Note	1 Jan - 31 Dec 2024	1 Jan - 31 Dec 2023
Cash flows from financing activities
Dividends distribution		-3,729,359.34	-1,953,473.94
Repayment of short-term loans		-3,000,000.00	-3,000,000.00
Group contributions received		3,400,000.00	2,231,327.48
Net cash flows from financing activities		-3,329,359.34	-2,722,146.46
Net change in cash and cash equivalents		30,833.18	13,346.80
Cash and cash equivalents at 1 January		148,760.99	135,414.19
Cash and cash equivalents at 31 December		179,594.17	148,760.99

Notes to the parent company financial statements

1. Parent company accounting principles

The financial statements of Orthex Corporation have been prepared in accordance with the Finnish Accounting Act and Ordinance and other statutes regulating the preparation of financial statements (Finnish Accounting Standards, FAS). The financial statements are presented in euros.

The preparation of financial statements in conformity with regulations in force and generally accepted accounting principles requires management to make estimates and assumptions that affect the valuation of assets and liabilities and reported amounts of revenues and expenses. Actual results could differ from those estimates.

Transactions in foreign currencies

Transactions in foreign currencies are recorded at the rates of exchange prevailing at the date of the transaction. At the end of the reporting period, balances in foreign currencies are translated using the exchange rate prevailing at the end of the reporting period.

Income taxes

Income taxes consist of the aggregate current tax expense based on the Finnish tax rules and adjustments to prior year taxes. The parent company does not account for deferred taxes as a stand-alone entity.

Receivables

Receivables are valued at the lower of book value and recoverable value.

Derivatives

Orthex Corporation has interest rate derivatives. Hedge accounting is not applied to interest rate derivatives to the extent that the derivatives protect the parent company's interest rate risk. The fair values of the derivatives are recorded in the balance sheet and changes in the fair value are recorded in the financial items of the income statement. The realized profit or loss of interest rate swaps hedging variable rate loans is presented in the income statement in financial items. The fair values of interest rate swaps are determined using a method based on the present value of future cash flows, which is supported by market interest rates at the end of the reporting period and other market information.

Appropriations

Appropriations in the parent company balance sheet consist of received group contributions.

2. Net sales

Net sales

EUR	2024	2023
Administration services	840,000.00	840,000.00

3. Personnel costs and number of employees

Personnel costs, book value

EUR	2024	2023
Wages and salaries	721,925.93	828,775.51
Pension costs	123,066.89	97,616.86
Other personnel costs	20,712.48	12,651.85
Total	865,705.30	939,044.22

CEO and Board remuneration, book value

EUR	2024	2023
CEO	569,216.00	437,427.00
Board of Directors	140,000.00	144,000.00

Number of employees

Average (FTE)	2024	2023
Employees	2	2
Total	2	2

The CEO and the CFO of Orthex Group work in Orthex Corporation.

EUR 2024 2023 Current year taxes -395,184.10 -404,458.31 Taxes from previous years -8,076.53 - Total -403,260.63 -404,458.31

1. Income taxes

4. Fees paid to company's auditors

EUR	2024	2023
Audit fees	134,088.00	116,166.00
Other	-	3,000.00
Total	134,088.00	119,166.00

5. Financial income and expenses

EUR	2024	2023
Interest and financial income from group companies	671,710.16	632,065.24
Dividends received from group companies	4,000,000.00	7,000,000.00
Other interest and financial income from others	-	59,602.27
Total financial income	4,671,710.16	7,691,667.51
Interest and financial expenses to others	-1,222,795.35	-1,578,150.03

Total financial expenses	-1,222,795.35	-1,578,150.03
Total financial income and expenses	3,448,914.81	6,113,517.48

6. Appropriations

EUR	2024	2023
Group contribution received	3,500,000.00	3,400,000.00
Total	3,500,000.00	3,400,000.00

8. Investments

EUR	Holdings in subsidiaries	Receivables from subsidiaries	Total
Acquisition cost
Balance at 1 Jan 2023	25,295,133.29	10,534,421.82	35,829,555.11
Additions	-	632,065.24	632,065.24
Balance at 31 Dec 2023	25,295,133.29	11,166,487.06	36,461,620.35
Additions	-	471,710.16	471,710.16
Balance at 31 Dec 2024	25,295,133.29	11,638,197.22	36,933,330.51

Shares in subsidiaries

	Number of shares	Domicile	% of share capital	Book value, EUR
Oy Orthex Finland Ab	135,170	Helsinki	100	25,295,133.29
Total, 31 Dec 2024				25,295,133.29

9. Receivables from subsidiaries

EUR	2024	2023
Other receivables	3,900,000.00	5,481,359.46
Total	3,900,000.00	5,481,359.46

10. Prepayments and accrued income

EUR	2024	2023
Value added taxes related to the tax audit	59,013.39	265,828.75
Other items	11,384.31	-4,671.34
Total	70,397.70	261,157.41

11. Shareholders' equity

EUR	2024	2023
Share capital, 1 Jan	80,000.00	80,000.00
Share capital, 31 Dec	80,000.00	80,000.00
Invested unrestricted equity fund, 1 Jan	8,430,263.84	8,430,263.84
Invested unrestricted equity fund, 31 Dec	8,430,263.84	8,430,263.84
Retained earnings, 1 Jan	10,557,423.42	3,874,895.36
Dividends distribution	-3,729,359.34	-1,953,473.94
Retained earnings, 31 Dec	6,828,064.08	1,921,421.42
Profit (loss) for the period	5,946,289.82	8,636,002.00
Distributable earnings, 31 Dec	21,204,617.74	18,987,687.26
Shareholders' equity total, 31 Dec	21,284,617.74	19,067,687.26

12. Long-term liabilities

EUR	31 Dec 2024	31 Dec 2023
Loans from credit institutions:
Payable in the next 12 months	3,000,000.00	3,000,000.00
Payable between one and five years	16,500,000.00	19,500,000.00

13. Accruals and deferred income

EUR	31 Dec 2024	31 Dec 2023
Wages, salaries and social costs	170,498.43	153,483.69
Derivatives	52,418.00	10,821.00
Other	29,773.55	151,774.94
Total	252,689.98	316,079.63

The value of the underlying asset of the derivatives in the financial statements on 31 December 2024 was EUR 9,750,000.00, and the maturity date of the derivatives is 22 December 2025.

14. Leasing contracts

EUR	31 Dec 2024	31 Dec 2023
Next year	21,350.95	-
Later	57,281.69	-
Total	78,632.64	-

15. Contingencies and pledged assets

EUR	31 Dec 2024	31 Dec 2023
Pledges given on behalf of Group companies:
Enterprise mortgages	48,100,000.00	48,100,000.00
Property mortgages	10,192,329.66	10,192,329.66
Total	58,292,329.66	58,292,329.66

The company has a credit limit of EUR 7,000,000.00, of which EUR 1,000,000.00 has been allocated to Oy Orthex Finland Ab and EUR 878,023.08 to Orthex Sweden AB.

Tax audit 2022

In 2022, Orthex Corporation was subject to a tax audit regarding the financial years 2020 and 2021. The tax audit report included subsequent taxes and tax increases amounting to a total of EUR 0.3 million relating to the VAT deductibility of IPO related costs. The company disagreed with the interpretation made in the tax audit and filed a claim for adjustment to its taxation with the Assessment Adjustment Board of the Finnish tax authority. However, the company was requested to pay additional taxes in accordance with the interpretations set out in the tax audit report and the company paid the subsequent taxes and tax increases in June 2022. Orthex did not recognise the subsequent taxes and tax increases in the consolidated statement of comprehensive income. The Assessment Adjustment Board issued its decision on the company's claim for adjustment in February 2025 and the company's claim was partly approved. As a result of the decision, EUR 0.2 million was recognised as items affecting comparability under fixed costs in the 2024 financial statements of Orthex Corporation.

16. Company shares

The company has 17,758,854 shares. The company's share capital is EUR 80,000.00. Each share entitles its holder to one vote at the Annual General Meeting.

Signatures of the Board of Directors' report and financial statements

Espoo, 11 March 2025

Sanna Suvanto-Harsaae, Chair of the Board of Directors Markus Hellström Jyrki Mäki-Kala

Anette Rosengren Alexander Rosenlew, CEO

Auditor's Note

Our auditor's report has been issued today.

Espoo, 11 March 2025 Ernst & Young Oy Authorised Public Accountant Firm

Mikko Rytilahti Authorised Public Accountant

Auditor's report

(Translation of the Finnish original)

To the Annual General Meeting of Orthex Oyj

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Orthex Oyj (business identity code 2727990-2) for the year ended 31 December 2024. The financial statements comprise the consolidated balance sheet, income statement, statement of comprehensive income, statement of changes in equity, statement of cash flows and notes, including material accounting policy information, as well as the parent company's balance sheet, income statement, statement of cash flows and notes.

In our opinion

• the consolidated financial statements give a true and fair view of the group's financial position, financial performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU.
• the financial statements give a true and fair view of the parent company's financial performance and financial position in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements.

Our opinion is consistent with the additional report submitted to the Board of Directors.

Basis for Opinion

We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.

We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

In our best knowledge and understanding, the non-audit services that we have provided to the parent company and group companies are in compliance with laws and regulations applicable in Finland regarding these services, and we have not provided any prohibited non-audit services referred to in Article 5(1) of regulation (EU) 537/2014. The nonaudit services that we have provided have been disclosed in note 4 to the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

ANNUAL REVIEW SUSTAINABILITY GOVERNANCE FINANCIAL REVIEW

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have fulfilled the responsibilities described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.

We have also addressed the risk of management override of internal controls. This includes consideration of whether there was evidence of management bias that represented a risk of material misstatement due to fraud.

Valuation of goodwill

We refer to note 8 to the consolidated financial statements.

The value of goodwill at the date of the financial statements amounted to 21.8 million euros, representing 25.4% of the group's total assets and 60.7% of the group's equity.

Valuation of goodwill is based on management's estimates about the value-in-use calculations of the group's cash generating units.

There are a number of underlying assumptions used to determine the value-in-use of a cash generating unit, including the development of revenue and profitability and the discount rate applied to cash flows estimates. The results of value-in-use calculations may vary significantly when the underlying assumptions are changed. Changes in the above-mentioned individual assumptions may result in an impairment of goodwill.

Valuation of goodwill was a key audit matter because the assessment process requires significant management judgements and forecasts to be made, because it is based on assumptions related to market and economic conditions extending far into the future and because the amount of goodwill is material to the consolidated financial statements.

This matter was also a significant risk of material misstatement as defined by EU Regulation No 537/2014, point (c) of Article 10(2).

Revenue recognition

We refer to note 2 to the consolidated financial statements.

According to the accounting policy presented in the consolidated financial statements, revenue from the sales of goods is recognized at the point in time when control of the goods is transferred to the customer. Cash and volume discounts granted to customers are taken into account when determining the amount of revenue recognized.

The revenue of Orthex Group is mainly generated from sales of household products to retailers.

There are multiple varying contractual terms across the group's markets regarding the above-mentioned discounts which could lead to misstatement of revenue, either due to fraud or error. The group focuses on revenue as a key performance measure which could create an incentive for revenue to be recognized prematurely. Due to these circumstances, revenue recognition was determined to be a key audit matter.

This matter was also a significant risk of material misstatement as defined by EU Regulation No 537/2014, point (c) of Article 10(2).

Key Audit Matter How our audit addressed the Key Audit Matter

Our audit procedures to address the risk of material misstatement regarding valuation of goodwill included among others:

• involving our valuation specialists to assist us in assessing the appropriateness of the methodologies, impairment calculations and underlying assumptions applied by management in the impairment testing;
• testing the mathematical accuracy of the impairment calculations;
• comparing the key assumptions applied by management in the impairment testing to approved budgets and forecasts, information available in external sources and our independently calculated industry averages such as for the weighted average cost of capital used in discounting cash flows;
• comparing the outcome of the impairment test to the market capitalization of Orthex Oyj; and
• comparing the principles applied by management in the impairment testing to the requirements set out in the standard IAS 36 Impairment of Assets.

We also assessed the appropriateness of the disclosures regarding impairment testing made in the notes to the consolidated financial statements.

Our audit procedures to address the risk of material misstatement regarding revenue recognition included among others:

• assessing the compliance of the group's accounting policies over revenue recognition, including those related to discounts, with the applicable accounting standards;
• analyzing a sample of contracts with customers and comparing the terms determined in them to the terms used in the group's calculations regarding discounts;
• testing the mathematical accuracy of the group's calculations of discounts and assessing the adequacy of liabilities recognized based on those calculations;
• testing the accuracy of revenue recognition by performing both analytical procedures and tests of details on a transaction level before and after the date of the financial statements; and
• analyzing the timing of revenue recognition based on delivery lead times.

We also assessed the appropriateness of the disclosures regarding revenue recognition made in the notes to the consolidated financial statements.

Valuation of inventories

We refer to note 13 to the consolidated financial statements.

The value of inventories at the date of the financial statements amounted to 12.5 million euros, representing 14.6% of the group's total assets and 34.9% of the group's equity.

Inventories are valued at the lower of cost or net realizable value. Inventories are presented net of an impairment loss allowance recognized for slow-moving or obsolete inventories or for inventories that have an otherwise lower net realizable value than cost.

Valuation of inventories was a key audit matter because the carrying value of inventories is material to the consolidated financial statements and because valuation of inventories involves management's judgment and estimates in order to determine the amount of slow-moving or obsolete inventories as well as the net realizable value of inventories.

Key Audit Matter How our audit addressed the Key Audit Matter

Our audit procedures included among others:

• assessing the group's accounting policies over inventory valuation and comparing them to the applicable accounting standards;
• comparing unit values of selected inventory items to sales prices;
• testing exceptional inventory values using data analysis;
• assessing the assumptions applied and the calculations prepared by management regarding slow-moving or obsolete inventories and the expected demand and net realizable value of inventory items; and
• testing the mathematical accuracy of the impairment loss allowance calculations prepared by management and assessing the adequacy of the allowances recognized.

We also assessed the appropriateness of the disclosures regarding valuation of inventories made in the notes to the consolidated financial statements.

Responsibilities of the Board of Directors and the Managing Director for the Financial Statements

The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and of financial statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing the parent company's and the group's ability to continue as going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting. The financial statements are prepared using the going concern basis of accounting unless there is an intention to liquidate the parent company or the group or cease operations, or there is no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance on whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent company's or the group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of the Board of Directors' and the Managing Director's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the parent company's or the group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the parent company or the group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events so that the financial statements give a true and fair view.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Reporting Requirements

Information on our audit engagement

We were first appointed as auditors by the Annual General Meeting on May 7, 2009 and our appointment represents a total period of uninterrupted engagement of 16 years. Orthex Oyj has been a public interest entity since March 29, 2021.

Other information

The Board of Directors and the Managing Director are responsible for the other information. The other information comprises the report of the Board of Directors and the information included in the Annual Report, but does not include the financial statements and our auditor's report thereon. We have obtained the report of the Board of Directors prior to the date of this auditor's report, and the Annual Report is expected to be made available to us after that date.

Our opinion on the financial statements does not cover the other information.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially

inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. With respect to report of the Board of Directors, our responsibility also includes considering whether the report of the Board of Directors has been prepared in compliance with the applicable provisions.

In our opinion, the information in the report of the Board of Directors is consistent with the information in the financial statements and the report of the Board of Directors has been prepared in compliance with the applicable provisions.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Espoo 11.3.2025

Ernst & Young Oy Authorized Public Accountant Firm

Mikko Rytilahti Authorized Public Accountant

Independent Auditor's Report on the ESEF Consolidated Financial Statements of Orthex Oyj

(Translation of the Finnish original)

To the Board of Directors of Orthex Oyj

We have performed a reasonable assurance engagement on the financial statements 7437008RMK8BSWN39T09-2024-12-31-fi. zip of Orthex Oyj (y-identifier: 2727990-2) that have been prepared in accordance with the Commission's regulatory technical standard for the financial year ended 31.12.2024.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director are responsible for the preparation of the company's report of Board of Directors and financial statements (the ESEF financial statements) in such a way that they comply with the requirements of the Commission's regulatory technical standard. This responsibility includes:

• preparing the ESEF financial statements in XHTML format in accordance with Article 3 of the Commission's regulatory technical standard

• tagging the primary financial statements, notes and company's identification data in the consolidated financial statements that are included in the ESEF financial statements with iXBRL tags in accordance with Article 4 of the Commission's regulatory technical standard and
• ensuring the consistency between the ESEF financial statements and the audited financial statements

The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of ESEF financial statements in accordance the requirements of the Commission's regulatory technical standard.

Auditor's Independence and Quality Management

We are independent of the company in accordance with the ethical requirements that are applicable in Finland and are relevant to the engagement we have performed, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

The firm applies International Standard on Quality Management (ISQM) 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements

Auditor's Responsibilities

Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets Act, provide assurance on the financial statements that have been prepared in accordance with the Commission's technical regulatory standard. We express an opinion on whether the consolidated financial statements that are

included in the ESEF financial statements have been tagged, in all material respects, in accordance with the requirements of Article 4 of the Commission's regulatory technical standard.

Our responsibility is to indicate in our opinion to what extent the assurance has been provided. We conducted a reasonable assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000.

The engagement includes procedures to obtain evidence on:

• whether the primary financial statements in the consolidated financial statements that are included in the ESEF financial statements have been tagged, in all material respects, with iXBRL tags in accordance with the requirements of Article 4 of the Commission's regulatory technical standard and
• whether the notes and company's identification data in the consolidated financial statements that are included in the ESEF financial statements have been tagged, in all material respects, with iXBRL tags in accordance with the requirements of Article 4 of the Commission's regulatory technical standard and
• whether there is consistency between the ESEF financial statements and the audited financial statements.

The nature, timing and extent of the selected procedures depend on the auditor's judgement. This includes an assessment of the risk of material deviations due to fraud or error from the requirements of the Commission's technical regulatory standard.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the primary financial statements, notes and company's identification data in the consolidated financial statements that are included in the ESEF financial statements of Orthex Oyj 7437008RMK8BSWN39T09-2024-12-31-fi.zip for the financial year ended 31.12.2024 have been tagged, in all material respects, in accordance with the requirements of the Commission's regulatory technical standard.

Our opinion on the audit of the consolidated financial statements of Orthex Oyj for the financial year ended 31.12.2024 has been expressed in our auditor's report 11.03.2025. With this report we do not express an opinion on the audit of the consolidated financial statements nor express another assurance conclusion.

Helsinki 25.03.2025

Ernst & Young Oy Authorized Public Accountant Firm

Mikko Rytilahti Authorized Public Accountant

Orthex Corporation Suomalaistentie 7 FI-02270 Espoo, Finland www.orthexgroup.com