Risks and uncertainties

The geopolitical situation, including the war in the Middle East and the continued uncertainty in Ukraine, has not had any material financial impact on the Group’s financial statements during the period, but it cannot be ruled out that this may occur going forward. Among other things, the conflict in the Middle East has led to disruptions in global transport flows, particularly via the Red Sea, which may result in higher transport costs, longer lead times and increased raw material and component costs.

With approximately 95 percent of sales and 80 percent of purchases in Europe, AddLife is not considered to be highly exposed to tariffs and trade barriers directly linked to the United States or other countries that introduce countermeasures. However, there is a risk that subcontractors and components further down the supply chain may be affected by tariffs, trade barriers, logistical disruptions or capacity constraints, which in turn could have an impact on AddLife.

The Group is closely monitoring market developments in respect of inflation, tariffs and trade barriers, raw material, component and freight costs, geopolitical tensions, as well as interest rate trends, and is continuously taking measures to mitigate negative effects. For further information, reference is made to the section “Risks and uncertainties” in the administration report in AddLife’s 2025 Annual Report. The Parent Company is indirectly affected by the above risks and uncertainties through its function within the Group.