Annual report
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Nexam Chemical Annual report 2025 Nexam ChemicalAnnual report 2025
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Content INTRODUCTION 3 Y ear in brief 4 CEO’ s message 6 Ne xam Chemical at a glance THE MARKET 8 Mark et trends and insights 10 T rends within recycling 12 Business de velopment highlights THE BUSINESS 2025 16 Inno vation and R&D SUSTAINABILITY 20 Sustainability and impac t 22 W ork environment 24 Distribut or profile VISION AND FUTURE OUTLOOK 26 V ision and future outlook NEXAM CHEMICALS SHARE 28 Wh y invest in Nexam Chemical? 30 Ne xam Chemical’s share ANNUAL REPORT 2025 32 Administr ation report 40 C orporate governance 46 C onsolidated financial statement 51 The par ent company’s statement 56 Notes 84 Signa tures 85 A uditor’s report 88 Boar d and management 90 Annual g eneral meeting and calendar “ Within Reactive Recycling™, several customer projects transitioned from the testing and pilot phases to recurring commercial deliveries during 2025. Demand for our solutions is primarily driven by our success in improving both the economic and technical conditions for our customers, enabling them to manufacture products with a higher proportion of recycled content while maintaining quality.”
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0 50,000 100,000 150,000 200,000 250,000 20252024202320222021202020192018 Year in brief A fully subscribed rights issue of over SEK 50 million was complet- ed toward the end of the year, strengthening the company’s finan- cial position and enabling accelerat- ed commercialization, particularly within Reactive Recycling™. Continued commercial scaling within Reactive Recycling™, with a growing number of customers in serial production and several proj- ects moving from pilot to industrial application during the year. Regula- tory drivers and increased require- ments for recycled materials are creating structural demand for the company’s solutions. Stable development within Aesthetics and High Temperature, with continued strong demand in selected applications, while the Lightweight segment was impact- ed by weaker market development within wind power. Maintained high gross margin, remaining above 45%, and increased operational efficiency driven by a higher share of in-house production, optimized formulations, and an im- proved product mix. The production platform enables significant volume growth without a corresponding increase in costs. During 2025, Nexam Chemical continued to strengthen its position as a leading player in advanced polymer solutions. Through a clear commercial focus, an increased presence with global customers, and a growing share of business within recycling, the company has further solidified its position in the ongoing transition toward a more circu- lar plastics industry. The combination of a scalable business model, a strong innovation platform, and a bolstered financial position creates a solid foundation for continued growth. Join us on a jour- ney of Innovation At Nexam Chemical, we invite you to join us on our journey of innovation and sustainability. Together, we are shaping a future where plastics can continue to play a vital role in our modern society, while minimizing their negative impact and instead paving the way for progress and opportunities. Annual turnover, kSEK Scientifically proven upcycling potential A research team at Politecnico di Torino has, through two pub- lished studies, scientifically val- idated the upcycling potential of Nexam Chemical’s additives within Reactive Recycling® for plastic materials degraded over multiple recycling cycles. The studies demonstrate the possibility of creating a circular economy for plastics, where re- cycled material streams can be used to produce more valuable end products. 3 Nexam Chemical Annual Report 2025Introduction
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From Vision to Industrial Scale: Enabling the Circular Plastics Economy 2025 was another year in which Nexam Chemical continued to strengthen its position in advanced polymer solutions, despite challenging macroeconomic conditions and ongoing regulatory shifts in our key markets. We delivered a positive operating result (EBITDA) for the year and a balanced cash flow, confirming that our strategy of combining innovation, sustainability, and cost control is effective. CEO STATEMENT, RONNIE TÖRNQVIST As we summarize 2025 and look ahead to 2026, I see a Nexam Chemical that is more focused and commercially positioned than ever before. During the past year, we have navigated a changing world, driving innovation and creativity alongside many of our customers. Uncertainty driven by global political shifts and, in some cases, significantly weak end-markets has demanded high levels of adaptabil- ity. Despite this, we have strengthened our profitability and continued to build our position in strategically prioritized areas. Today, we stand on a clearly more stable foundation than a year ago—both commercially and financially. The fully subscribed rights issue conducted toward the end of the year has further bolstered our financial position, providing the room to maneuver and accelerate our strategic priorities, particularly within the growing field of performance-enhancing solutions for recycled plastics. 2025: Strategic delivery and market momentum the strategy launched in 2023 is now fully integrated. By working from the outside-in, we have succeeded in meeting customer needs with higher precision. Although the economic climate pressured volumes in our core business by approx- imately 10%, we countered this through increased new sales—primarily within Reactive Recycling™. During the year, several projects transitioned from pilot to industrial application—a vital step in the commercialization of our technology. In Recycling, we have continued to build on our leading position, launching several customer-specific projects in new application areas. These solutions enable recycled plastics to be used in more de- manding applications—from food-grade packaging to automotive and construc- tion components—without compromis- ing on performance. During the year, we established 25 recur- ring customers using Reactive Recycling™ in serial production. Recycling accounted for approximately 12% of the Group’s net sales for the full year and nearly 19% during the fourth quarter—where the quarter’s sales in this area exceeded those of the full year 2024. This illustrates the accelerating commercialization of our technology. Given the high proportion of recurring business and the broadened customer base, we see strong potential for Recycling to gradually constitute a larger share of the Group’s turnover. This development aligns with regulatory initiatives such as the EU’s PPWR legisla- tion, which drives the use of recycled plas- tic through mandatory recycled content targets in packaging. At the same time, the material industry’s scale-up processes are gradual and long-term. This means we are witnessing a structural shift rather than a short-term trend—a shift where performance-enhancing additives be- come an essential part of the value chain. Within High Temperature, 2025 was a year of progress, with continued par- ticipation in long-term projects in the aerospace and electronics industries. The Aesthetics market area has devel- oped stably, where Recolour Plus and Performance Masterbatch have enabled customers to develop new products and increasingly integrate recycled material without compromising color or surface quality. Our customers in Light Weight faced a challenging year due to weak development in the wind power industry. However, they have continued to develop new applications and worked intensively to make PET foam an even more cost-ef- fective and high-performance structural material. We believe the segment is well-positioned for when market condi- tions improve. 4 Nexam Chemical Annual Report 2025 CEO’s message
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Our R&D activities remain at the fore- front, with investments corresponding to approximately 20% of our overhead costs. In 2025, we developed new PET formu- lations, chain extenders for polyamides, and solutions that reduce warping during manufacturing. These innovations strengthen our competitiveness and increase customer value, while contribut- ing to sustainable growth and long-term profitability. Efficiency and scalability The 2022 savings program has now reached full effect. We have lowered our break-even point and significantly strengthened the EBITDA margin. Our existing production capacity allows for a doubling of volume without major investments, creating the conditions for operating leverage over time. This provides a scalable platform as market volumes gradually increase. Strategic priorities for 2026 In the coming year, we are channeling our resources—not least the capital raised to accelerate our growth journey—toward the following areas: G lobal scale-up of Reactive Recycling™: Leveraging successful customer cases in new geographic markets and industries. F urther development of Recolour Plus: Our range that combines aesthetics with recyclability, perfectly timed for the packaging industry. “Nexam Chemical’s primary climate contribution lies in the circularity and performance enhancement we enable throughout the entire plastics value chain.” C ontinued technological development in high-performance polymers: Devel- oping solutions for extreme environ- ments, from jet engines to advanced electronics. E xpansion in Europe: Increasing the pace of market cultivation in Central Europe with a strengthened team. D igital Scaling: Through structured lead generation and a new web platform to more effectively target strategic customers. A sustainable future Sustainability is the heart of our business model. As circularity becomes an absolute requirement, Nexam Chemical stands ready with the technology that makes the transition profitable for the customer. Our primary climate contribution lies in the handprint we create when we enable our customers to replace virgin plastic with recycled raw materials without compromising on performance. I want to extend a warm thank you to our employees, customers, and partners for your commitment. I also thank our share- holders for their continued trust, which has further strengthened the company’s financial platform. Together, we continue to develop plastic as a material and create the conditions for a sustainable and circu- lar plastics industry. ◾ 5Nexam Chemical Annual Report 2025CEO’s message
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About Nexam Chemical Lightweighting We optimize the strength and mechanical properties of PET foam, with a particular focus on recycled raw materials (rPET). Our solu- tions are critical enablers for lighter and stronger structures within wind power, the marine industry, and the construction sector. NEXAM CHEMICAL AT A GLANCE A pioneer in advanced polymer technology Aesthetics Through Performance Masterbatch and our ReColour Plus® tech- nology, we set a new standard for coloration. We enable high-qual- ity finishes and a visual premium feel in both virgin and recycled plastics for everything from packaging to technical components. Reactive Recycling® Our patented technology is the backbone of the circular transition. By molecularly repairing degraded plastic, ma- terial properties are restored to a level approaching virgin quality. This enables large-scale use of recycled material in demanding applications, fully in line with the EU’s new Packaging and Packaging Waste Regulation (PPWR). Nexam Chemical is a global player that develops advanced additives to maximize the performance, lifespan, and recyclability of polymers. By enabling the transition to a circular economy, we help industries lower their costs and meet increasingly stringent environmental requirements without compromising on quality. Our operations are optimized within four strategic niche areas where our expertise creates the greatest value: Reactive Recycling®, Lightweighting, High Temperature, and Aesthetics. High Temperature In the aerospace, electronics, and advanced manufacturing industries, we replace heavy metals with high-perfor- mance composites. Our additives ensure that polymers maintain their integrity even in the most extreme tem- perature environments. 6 Nexam Chemical Annual Report 2025
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Nexam Chemical companies Agents/distributors Nexam Chemical’s global presence grows with representatives across the world: India, Israel, South Korea, Pakistan, Spain, Great Britain, Taiwan, USA and others. Global presence and market focus With roots in Swedish innovation and headquarters in Lomma, Nexam Chemical operates on a global arena: Europe: Our home market with a strong focus on renewable energy and circular solutions. We have our own production in Scotland, Poland, and Hungary, and are currently strength- ening our presence in Central Europe to meet rapidly growing demand. North America: A strategic market for our lightweight tech- nology and high-temperature applications, with a focus on the aerospace and space industries. New distributor since January 2026 is well-renowned Palmer Holland, specialising in additives for plastics. Asia: Here we drive growth through increased demand for circular material solutions and advanced high-temperature materials. Sustainability as a business strategy Sustainability is not a side project - it is our business. By making recycled plastic profitable and functional, we reduce the indus- try’s carbon footprint and resource consumption. With a strong portfolio of patented innovations and a dedicated focus on EcoVadis validation, we help our customers stay one step ahead in a world where circularity is the only way forward. About Nexam Chemical 7Nexam Chemical Annual Report 2025
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From regulatory pressure to commercial acceleration MARKET TRENDS AND INSIGHTS The global plastics industry is undergoing a rapid transformation driven by strict sustainability requirements and technological break- throughs. These factors are creating a unique demand for Nexam Chemical’s solutions within Lightweighting, High Temperature, Aesthetics and Recycling. Sustainability as a Profit Driver Sustainability has evolved from a vol- untary commitment into a regulatory necessity. The EU’s Packaging and Pack- aging Waste Regulation (PPWR) now sets the framework with mandatory require- ments for increased recycled content. However, we are witnessing a paradigm shift: companies are now choosing Reactive Recycling™ not only for environ- mental reasons but because it enables the use of more cost-effective recycled raw materials without sacrificing quality. During the year, our customers reported direct cost savings of over 20%, turning the green transition into a clear business advantage. From Recycling to Upcycling Mechanical recycling has historically been hindered by the degradation of plastic properties during its lifecycle. Nexam is breaking this downward spiral. By restoring the molecular structure of polymers, we enable the “Upcycling” of plastic waste. This elevates the quality of recycled material to levels previously only possible with virgin resin, opening doors for demanding applications in areas such as food packaging, automotive, and construction materials. Lightweight Materials for a Low-Carbon Economy Weight reduction is crucial for reducing carbon emissions in transport and indus- try. PET foam—strong, lightweight, and recyclable—is now expanding from wind power into the marine and construction sectors. Our technology enhances the performance of rPET foam (recycled PET), providing a significantly lower environ- mental footprint than traditional materi- als like PVC foam or balsa wood. Electrification and High-Performance Plastics Rapid electrification is increasing the need for heat-resistant materials in every- thing from electric motors to semicon- ductors. Nexam Chemical’s solutions for high-temperature applications ensure component longevity and energy effi- ciency in extreme environments. Through our progress in projects like TAPE-X, we contribute directly to the next genera- tion of the aerospace industry, where lightweight and temperature-resistant composites are the key to lower fuel consumption. ◾ 8 Nexam Chemical Annual Report 2025 The market
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“During the year, our customers reported direct cost savings of over 20%, turning the green transition into a clear business advantage.” Regional Market Dynamics Europe: The PPWR regulation and ambitious climate goals are creating a direct influx of inquiries regarding our circular solutions. North America: A growing aerospace and defense industry is driving de- mand for advanced materials, while major brands are pushing for higher recycling rates. Asia: As a global manufacturing hub for electronics, there is an increasing need for our high-temperature and aesthetic solutions, such as Recolour Plus. Looking Ahead Heading into 2026 and beyond, the companies that successfully combine regulatory compliance, technical perfor- mance, and cost-effectiveness will lead the industry’s growth. Nexam Chemical is well-positioned to continue shaping the future of sustainable plastics, driving innovation, and delivering value to cus- tomers on a global scale. ◾ 9Nexam Chemical Annual Report 2025The market
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TRENDS WITHIN RECYCLING Mechanical recycling 2.0: How additives make circularity profitable The European Packaging and Packaging Waste Regulation (PPWR) has transitioned from theory to opera- tional reality. Requirements for recyclability and traceability are no longer optional—they are legal man- dates reshaping the entire industry. For Nexam Chemical, this translates into a heightened demand for technologies that can guarantee material performance within a circular economy. The eff ects of PPWR extend far beyond EU borders, driving multinational corporations to adopt even more ambitious sustainability goals. During 2025, this further increased demand for Nexam Chemical’s solutions, particularly within packaging and consumer goods, where regulation is most extensive. Advanced mechanical recycling wins ground over chemical We are seeing a distinct shift in the industry. Chemical recycling continues to struggle with high energy costs, massive capital requirements, and inherent com- plexity. In its place, advanced mechanical recycling, combined with additives, is gaining ground as the most cost-effec- tive and sustainable alternative. While mechanical processes sort and wash the waste, Reactive Recycling™ intervenes at the molecular level. Our technolo- gy utilizes chain extenders that repair degraded polymers and restore material quality for advanced applications in the packaging, construction, and automotive industries. This enables our customers to integrate a higher proportion of recycled material without compromising the per- formance of the end product—a solution that maximizes both cost-efficiency and sustainability. Food-grade recycled plastics – a growing market The demand for food-safe recycled plastics (PET, PP, and PE) continues to rise, driven by both regulation and consumer expectations. While mechanical recycling methods for food-grade polyolefins are still evolving, major industrial initiatives 10 Nexam Chemical Annual Report 2025 The market
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Global plastic production – recycled & bio vs fossil-based Chemical recycling Bio based Mechanical recycling Fossil based 2024202320222021202020192018 339.4 347.7 347.3 359.8 362.3 374.2 387.0 30 1.1 0.1 1.2 0.1 1.4 0.1 1.5 0.1 2.4 0.1 3.0 0.3 2.6 0.4 30.8 31.5 32.8 35.5 36.2 40.8 are underway across Europe, North America, and Asia. Nexam Chemical’s next-generation additives, which restore plastic properties post-recycling, were bolstered in 2025 with new formulations for PET, PP, and PE, playing a central role in this transition. Textile-to-textile recycling – a breakthrough Through ongoing collaborations with aca- demic and industrial partners, significant progress has been made in textile-to-tex- tile recycling. End-of-life polyester textiles can now be reconstructed into high-quality materials, opening doors for a more circular textile industry. The proven technical and commercial feasibil- ity has strengthened Nexam Chemical’s position as a provider of additives that support advanced, recycled material streams. The Synergy Between AI and Chemistry One of the most potent trends currently is the integration of AI-driven sorting in recycling facilities. While AI robots and Near-Infrared (NIR) technology can now separate plastic streams with extreme precision, a new need arises: the chemical ”fine-tuning” of these pure but often degraded fractions. Nexam’s Reactive Recycling™ acts as the chemical adjust- ment that allows AI-sorted plastic to actually replace virgin raw material in demanding industrial applications. Global recycling dynamics Beyond Europe, we are seeing massive investments in recycling infrastructure in emerging markets such as India and Southeast Asia, driven by national plastic pacts. As chemical recycling continues to face economic and environmental hurdles, the focus is shifting toward enhanced mechanical recycling with per- formance-enhancing additives like Reactive Recycling™. Nexam’s technology is well-positioned to support this trans- formation, offering scalable solutions for an increasingly circular plastics industry. With a global market for recycled plastics projected to grow by over 7% annually through 2030, Nexam Chemical is per- fectly positioned to deliver the essential technology for this global transition. ◾ 11 Nexam Chemical Annual Report 2025The market
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12 The market BUSINESS DEVELOPMENT HIGHLIGHTS 2025 marked a commercial breakthrough for Nexam Chemical, partic- ularly within the Recycling focus area. We successfully navigated the transition from preliminary testing to recurring deliveries on an indus- trial scale. Our ability to rapidly adapt to evolving customer needs has resulted in deepened partnerships and a broader range of business cases. By maintaining a clear focus on our four core areas, we have solidified our role as a strategic partner for global manufacturers seek- ing to unite material performance with a circular economy. Despite continued global macroeconomic uncertainty, the company has taken significant steps in broadening its customer base, deepening existing collaborations, and accelerating the industrialization of new solutions. Strategic progress and commercial acceleration Deepened customer relationships in recycling Within Reactive Recycling™, several customer projects transitioned from the testing and pilot phases to recurring commercial deliveries during 2025. De- mand for our solutions is primarily driven by our success in improving both the economic and technical conditions for our customers, enabling them to manufac- ture products with a higher proportion of recycled content while maintaining quality. We see a growing interest in in- creasing recycling rates as new regulatory requirements are implemented within the EU and globally. This creates a strong tailwind for Nexam Chemical and opens a wave of new business opportunities. A key example is the expanded strategic collaboration with a global player in food packaging. Our additives enable a higher proportion of recycled material while maintaining mechanical strength and processability. By implementing our tech- nology, the customer has not only met its sustainability goals but also reduced total production costs by over 20%. Lightweighting – consolidating position with market leaders In Lightweighting, 2025 was a year characterized by strategic consolidation rather than volume growth, as the wind power markets in Europe and North America experienced a temporary slow- down. Despite this, Nexam Chemical has actively pursued business development and solidified its position as a qualified supplier to the dominant manufactur- ers of PET foam. As an integrated part of these players’ production processes, we stand ready to scale up volumes as investments in renewable energy and infrastructure recover. To reduce dependency on individual sec- tors, we have successfully collaborated with PET foam customers to develop new applications in transport and construc- tion. In these sectors, the combination of low weight and recyclability is becoming increasingly important in material selec- tion, and recycled plastics will play a vital role moving forward. High Temperature – stable development in niche applications In the High Temperature segment, the company continued to deliver solutions to customers in aerospace, electronics, and industrial applications. During the year, new qualification processes were initiated—a vital step in long-term indus- trial projects with high technical barriers to entry. The electrification of the transport sector and continued advancement in the semiconductor industry are driving the need for plastics with enhanced heat resistance and dimensional stability. Nexam Chemical’s additives contribute to increased longevity, improved safety, and higher performance in these demanding environments. 12 Nexam Chemical Annual Report 2025
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2022 2023 2024 2025 100 90 80 70 60 50 40 30 20 10 0 % Aestetics Lightweight High Temperature Recycling 56% 35% 11% 1% 55% 27% 15% 3% 54% 28% 14% 4% 55% 20% 13% 12% 1313The market Balanced business ready for growth Turnover per segment 2022-2025 The last three years, Nexam’s business has broadened, with an increasing num- ber of paying customers in key segments, contributing to a more balanced turnover. Dependency on single large customers has decreased, while the broadened customer base provides opportunity for new business with existing customers. Despite continued global macroeconomic uncertainty, the company has taken significant steps in broadening its customer base, deepening existing collaborations, and accelerating the industrialization of new solutions. 13 Nexam Chemical Annual Report 2025
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1414 Nexam Chemical Annual Report 2025 The market
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Customer interest / early stage Evaluation stage Development stage Proof-of-concept stage Scale-up / industrialization Launch Commercial Project pipeline overview Same standardized, and well proven, project pipeline process also for Recycling (with 3-10x more volume) 15The market Aesthetics – function meets sustainable design the Aesthetics segment continued to develop in 2025, focusing on color and performance solutions that enable the use of recycled material without com- promising visual expression or surface finish. Products such as Recolour Plus and Performance Masterbatch have been utilized to ensure color stability, UV resistance, and NIR-detectability, which is central to effective sorting in recycling streams. This segment complements our recycling strategy by addressing one of the practical hurdles often encountered when increasing the use of recycled mate- rial—namely, aesthetic and visual quality. Operative scalability and market presence during the year, Nexam Chemical contin- ued to optimize its production structure and supply chain. Previous investments in production capacity mean that the company can handle increased volumes without a proportional increase in fixed costs, strengthening operating leverage during growth. In parallel, our global presence has been bolstered through new and expanded collaborations with distributors and local partners in Europe, North America, and Asia. This improved proximity to our customers enables faster development cycles, technical support, and efficient commercialization. Outlook Business development in 2025 clearly demonstrates that Nexam Chemical stands on a solid foundation for contin- ued expansion. By combining technical excellence with commercial discipline and a clear segment strategy, the company continues to transform innovation into industrial reality. With a growing project pipeline and a scalable organization, we are ready to accelerate our profitable growth journey in 2026. ◾ “Business development in 2025 clearly demonstrates that Nexam Chemical stands on a solid foundation for continued expansion.” 15Nexam Chemical Annual Report 2025
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16 Our innovation agenda is closely linked to the global megatrends affecting the plastics industry: increased circularity, resource efficiency, electrification, and demands for higher material perfor- mance. By combining deep chemical expertise in reactive polymer technology with close customer collaborations, we ensure that our development projects address concrete industrial needs. Enhanced Portfolio within Reactive Recycling™ During 2025, the further development of Reactive Recycling™ has been a priority area. New formulations of chain extend- ers and reactive additives have been developed to improve the properties of recycled polypropylene (PP), polyethylene (PE), and PET. The focus has been on restoring molecular weight, improving impact strength, and optimizing pro- cessability in industrial extrusion and injection molding processes. The technology was streamlined for sev- eral different types of plastic during the year, increasing the addressable market and broadening our portfolio of solutions. Our Reactive Recycling™ portfolio is now applicable to approximately half of all plastic produced worldwide. We now see a constant flow of new products and additives in our pipeline, designed to meet both the technical and economic challenges posed by a large- scale circular economy. Several projects have transitioned from laboratory and pi- lot scale to full industrial implementation, confirming both the robustness of the technology and its commercial relevance. PET and Lightweight Applications In the PET area, development work has fo- cused on improved formulations for foam applications, including the optimization of cell structure, mechanical strength, and processing stability. Particular em- phasis has been placed on enabling solu- tions based on recycled PET (rPET), where our additives contribute to more stable material properties despite variations in raw material quality. These advancements strengthen Nexam’s position in the Lightweighting segment and enable lighter, more sus- tainable composite structures for wind power, transport, and the construction industry. High Temperature – Materials for Demanding Environments Development efforts in High Tempera- ture during the year focused on polymers for applications with high thermal and mechanical requirements, such as elec- tronics, semiconductors, and the aero- space industry. New solutions have been developed to improve heat resistance, dimensional stability, and long-term per- formance at elevated temperatures. Through participation in advanced industrial projects, such as the recently concluded TAPE Extreme, and collabo- ration with leading players in material development, we have continued to strengthen our expertise in cross-linking technology and the reactive modification of high-performance polymers. Aesthetics and Functional Masterbatches In the Aesthetics segment, innovation in 2025 focused on combining visual quality with improved recyclability. Further Innovation with purpose: Building the molecular toolkit for future polymers Innovation is the core of Nexam Chemical’s strategy and a decisi- ve driver of the company’s long-term competitiveness. In 2025, we continued to invest approximately 20 percent of our overhead costs in research and development, with a clear focus on translating scientific excellence into commercially viable and scalable solutions. By com- bining a market-oriented strategy with long-term research, we have taken significant technical strides that directly strengthen our own profitability and our customers’ competitive edge. INNOVATION AND R&D 16 Nexam Chemical Annual Report 2025 The business
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development of color masterbatches, including NIR-detectable black solutions, enables more efficient sorting in recycling facilities. Simultaneously, new formulations have been developed to improve UV resistance, color stability, and mechanical perfor- mance in products containing a high pro- portion of recycled material. This is crucial for increasing the acceptance of recycled plastics in consumer-facing applications. Academic Collaborations and Long-term Expertise We believe in the power of collaboration. Our close partnership with academia— including the doctoral project with Chalmers University of Technology and WISE (Wallenberg Initiative Materials Science for Sustainability) related to advanced polymer technology and sus- tainable material solutions—provides us with access to cutting-edge research that we can rapidly translate into commercial products. These collaborations strengthen our scientific foundation and provide access to new knowledge in areas such as deg- radation, stabilization, and the molecular design of polymers. By combining internal expertise with external research net- works, we ensure a continuous influx of innovation that can be converted into fu- ture products and business opportunities. From Research to Business A central part of our innovation model is working closely with customers through- out the entire development process— from initial needs analysis to full-scale industrialization. This reduces time-to- market and increases the likelihood of commercial success. In 2025, several R&D projects transitioned into recurring business, clearly demon- strating how our technical platform generates concrete business value. Innovation at Nexam Chemical is thus not an isolated research initiative, but an integrated part of the company’s growth strategy and profitability development. Nexam Chemical’s multifaceted inno- vation work sets a new standard for the industry. With a strong patent portfolio, a scalable technology platform, and a continued clear focus on circular and high-performance materials, Nexam Chemical is well-equipped to remain at the forefront of development in reac- tive chemistry and advanced polymer solutions. ◾ “Innovation is about solving real-world problems. By focusing on sustainability and function, we ensure that every new solution we bring to market creates measurable benefits for both the customer and the environment.” Christer Svanberg, CTO på Nexam Chemical 17Nexam Chemical Annual Report 2025 17The business
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SustainabilityNexam Chemical Annual Report 202518 Sustainability is embedded in Nexam Chemical’s strategy and business model. Beyond managing our own footprint, our primary contribution lies in enabling customers to transition toward a more circular and resource-efficient plastics economy. Through performance-enhancing additives for recycled polymers, we help customers: M aximize recycled content without compromising material performance E xtend product lifetime R educe dependence on virgin plastics I mprove cost efficiency while strengthening sustainability profiles These capabilities are increasingly aligned with regulatory requirements for recycled content and circular material perfor- mance, strengthening the long-term relevance and competitiveness of our offering. This positions Nexam Chemical at the intersection of regulatory-driven circularity, climate transition and ad- vanced material innovation. Sustainability Framework and Governance Following regulatory updates in 2025 (Omnibus I Simplification Package), the Company is no longer in scope of the Cor- porate Sustainability Reporting Directive (CSRD) or the Listed SME (LSME) standard previously pursued. Despite this change in regulatory scope, we remain committed to structured and transparent sustainability management. We have elected to align our reporting with the Voluntary Sustainability Report- ing Standard for SMEs (VSME), a propor- tionate framework reflecting our size, complexity and risk profile. We intend to progressively implement the VSME framework in a manner proportionate to the Company’s size, complexity and risk profile, with the ambition of achieving alignment for the 2026 reporting year. Sustainability oversight is embedded within our governance structure and assigned at management level, ensuring accountability and integration into stra- tegic decision-making. Sustainability considerations are integrat- ed into: O perational planning B usiness decisions S upplier relationships R &D and product development We are a participant of the United Nations Global Compact (UNGC) and ad- here to its Ten Principles covering human rights, labour standards, environmental protection and anti-corruption. Sustainability is embedded in Nexam Chemical’s strategy and business model. Beyond mana- ging our own footprint, our pri- mary contribution lies in enabling customers to transition toward a more circular and resource- efficient plastics economy. Sustainability as a value driver SUSTAINABILITY AND IMPACT
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Sustainability Environmental Responsibility Climate and GHG Management We recognize climate change as a key global challenge and measure greenhouse gas emissions in accordance with the GHG Protocol. S cope 1 and 2 emissions are calculated from energy billing data E mission intensities are based on data from the European Environment Agency S cope 3 emissions are estimated using the EcoVadis Estimator Tool Significant Scope 3 categories include: 3 -1 Purchased Goods and Services 3 -10 Processing of Sold Products 3 -12 End-of-life Treatment of Sold Products We are committed to: I mproving data robustness and completeness I dentifying practical emission reduc - tion measures I ncreasing internal climate awareness Our GHG Inventory will be published separately on our website. Enabling Scope 3 Impact Through Circular Solutions While managing our own emissions remains important, the largest climate leverage potential lies in enabling reduc- tions across customer value chains. By upcycling recycled plastics to near-virgin performance, our additives: I ncrease usability of recycled feedstock I mprove durability and performance of recycled polymers S upport compliance with regulatory recycled-content requirements R educe lifecycle emissions compared to virgin alternatives These downstream effects illustrate the broader climate leverage of our technol- ogy platform. While not fully captured within our own reported emissions foot- print, this value-chain impact represents the structural sustainability contribution of Nexam Chemical. “ Nexam Chemical’s primary climate impact is not found within our own walls, but in the performance uplift we enable across the global plastics value chain.” Ronnie Törnqvist, CEO 19Nexam Chemical Annual Report 2025
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SustainabilityNexam Chemical Annual Report 202520 2024 2025 2026 TARGET Energy Consumption (MWh) 1,439 1,705 1,800 Fossil free energy (%) 74 89 90 Production (tonnes) 1,901 2,423 2,700 Energy Efficiency (kWh/kg) 0.757 0.704 0.667 2024 2025 2026 TARGET Scope 1 (tCO2e) 44.6 35.1 35 Scope 2 (market-based, tCO2e) 46.4 17.7 20 Scope 2 (location-based) 93.2 77.6 75 Scope 3-1 3,040 2,912 3,150 Scope 3-10 5,865 5,650 6,100 Scope 3-12 3,180 3,063 3,300 Total Scope 3 12,665 12,240 13,215 Total GHG 12,756 12,293 13,270 2024 2025 2026 TARGET Raw Material Purchases (tonnes) 2,598 3,093 3,294 Production (tonnes) 1,901 2,423 2,700 Raw Material Efficiency (kg/kg product) 1.37 1.28 1.22 Water Consumption (m³) 1,230 983 1,026 Water Intensity (m³/tonne) 0.65 0.41 0.38 Solvent Purchases (kg) 60 247 41 414 45 000 Solvent Recycled (kg) 19 342 13 396 15 000 UK Production (kg) 6 270 4 420 5 000 Solvent Efficiency (kg/kg) 12.69 12.40 12.00 Energy Performance During 2025, we significantly increased the share of fossil free electricity to 89% (74%), while improving overall energy efficiency per kg produced from 0.757 to 0.704 kWh/kg. This reflects both higher production volumes and continued oper- ational optimization across our sites. Two sites operate Solar PV systems (installed >10 years and 3 years respec- tively). From 2025, data logging enables reliable reporting: 8 6,162 kWh generated in 2025 8 9.9% consumed internally GHG Emissions Total GHG emissions decreased despite increased production volumes, driven primarily by improved energy sourcing and operational efficiency. Market-based Scope 2 emissions were reduced signifi- cantly, reflecting our transition toward renewable electricity. Resource Efficiency We aim to minimize waste, optimize material usage and improve process efficiency. Water use is monitored where relevant. Although our operations are not water- intensive, we seek to avoid unnecessary consumption. Raw material efficiency improved from 1.37 to 1.28 kg/kg product, reflecting enhanced process control and reduced material losses. Water intensity per tonne produced improved materially from 0.65 to 0.41 m³/tonne, primarily due to higher production volumes combined with improved resource management. Solvent purchases decreased significantly year-on-year, reflecting lower production volumes at the UK site and improved solvent management practices. Energy consumption and fuel use are monitored based on supplier data, with emission factors applied in line with UK Government guidance (UK site). UK site solvent usage is monitored separately.
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Sustainability 2024 2025 2026 TARGET Waste generated (tonnes) 290 243 216 Production (tonnes) 1,901 2,423 2,700 Waste Efficiency (kg/kg) 0.15 0.10 0.08 Energieffektivitet (kWh/kg) 0.757 0.704 0.667 KEY INDICATORS 2024 2025 2026 TARGET Near miss / Incidents 17 22 24 Lost time accidents 1 0 0 Days lost to LTAs 2 0 0 Sickness absence rate 1.7% 2.1% 1.5% Whistleblowing reports 0 0 24 Acknowledged within 5 days n/a 100% 0 Closed within 8 weeks incl. corrective action n/a 100% 0 Relevant personnel trained in ABAC 100% 100% Waste management Waste is managed in accordance with applicable regulations, with segregation where feasible to support recycling. Focus areas: R egulatory compliance S ource reduction I mproved segregation and recycling Social Responsibility Health and Safety We aim to provide a safe working envi- ronment and comply with all applicable regulations. Health and safety performance improved across key indicators in 2025, with zero lost time accidents and no days lost due to workplace incidents. Employee Well-being Absence rates are monitored to support workforce planning and preventive measures. Business Conduct and Ethics We maintain a whistleblowing mecha- nism allowing confidential and, where appropriate, anonymous reporting. All cases are investigated in line with estab- lished procedures and protection against retaliation. We commit to training 100% of relevant personnel (Management, Financial, Sales and Purchasing) in Anti-Bribery and Anti-Corruption (ABAC) every two years. Responsible supply chain and external assessment Sustainability risks extend beyond our own operations. Responsible sourcing and supplier engagement are integral to our approach. Our sustainability performance is ex- ternally assessed by EcoVadis, where we hold a Bronze Medal, covering environ- mental, social, ethical and supply-chain performance. Materiality and continuous improvement A Materiality Assessment aligned with the VSME standard is under development and will be published in 2026. Looking ahead, we will focus on: S trengthening sustainability data collection E nhancing accountability and internal awareness U sing external benchmarks and stake - holder feedback to prioritize actions We view sustainability as a continuous improvement process supporting respon- sible growth. In summary, Nexam Chemical’s most significant climate contribution extends far beyond our operational footprint; it is defined by the performance uplift and circularity we enable across the global plastics value chain. ◾ Waste efficiency improved materially from 0.15 to 0.10 kg/kg product, demonstrating improved operational discipline and waste segregation practices. 21Nexam Chemical Annual Report 2025
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A shared vision that drives employees and the work environment forward At Nexam Chemical, we are united by a clear and shared vision that creates an inspiring work environment where openness, collaboration, and innovation are at the center. By focusing on the development and well-being of our employees, we build a strong foundation for long-term growth and success. Employees at the core every day We see our employees as our most important asset. Therefore, we continu- ously invest in the environment, health, safety, and quality (EHSQ) to create a safe and enjoyable workplace. Ensuring that our employees thrive and develop is not just a part of our culture – it is a strategic priority for our long-term success. Continuous development and safety at the core We actively work to improve the work environment and minimize risks, with a strong emphasis on safety and quality. Through ongoing safety training and technical investments, we ensure that both our work environment and our pro- cesses meet the highest standards. Quality and security as guiding principles Our ISO certifications for quality and safety are a clear testament to our commitment to the highest quality and a safe work environment. We leave nothing to chance – whether it concerns our products or the care we provide for our employees. Diversity and inclusion – a given With operations in Sweden, Scotland, and Eastern Europe, we are proud to have a workforce with diverse backgrounds, skills, and experiences. At the end of the year, we had 60 full-time employees, and we actively work to promote gender equality and diversity. We maintain a zero-tolerance policy towards all forms of discrimination. A workplace for development and growth We aim to be a platform for both individ- ual and collective development. Through close collaborations with our customers, our employees naturally become part of the customers’ product development and innovation processes. Together, we create value, not only for our customers but also for our employees and our organization as a whole. ◾ “Together we create value, not just for our customers but for our employees and our organization as a whole.” 22 Nexam Chemical Annual Report 202522 Employees and work environment
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Sweden Scotland Eastern Europe Quality & security 23 Nexam Chemical Annual Report 2025Employees and work environment
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Region: India Representative: Gaurang Goradia Market Perspective - quality upgrading in a rapidly growing market According to Krishna Enterprises, the Indian recycled plastics market is characterized by strong growth, driven by expansion in manufacturing, packaging and export-oriented industries. Demand for higher-quality and more consistent r-PET, r-PE and r-PP materials is increasing significantly. The challenges are well known: r-PET users face IV loss, brit- tleness and clarity variations, while r-PE and r-PP recyclers struggle with low melt strength and fluctuations in MFI (Melt Flow Index) and mechanical properties. At the same time, EPR regulations (Extended Producer Responsibility), plastic waste reduction initiatives and international customer requirements are accelerating the shift toward higher recycled content. In this environment, Krishna Enterprises sees Nexam Chemical’s solutions - M022400, R201 and R202 - as enabling recyclers to upgrade low-grade feedstock into materials that meet more demanding specifications, although cost efficiency remains a decisive factor in customer decision-making. Customer value & applications Demand is primarily driven by packaging (rigid and flexible), household molded goods, textiles, automotive and appliance components, as well as construction applications. Across these segments, improved strength, stability and controlled MFI are critical requirements. Krishna Enterprises highlights how the solutions deliver tangi- ble performance improvements: F or r-PET, M022400 enables reliable IV rebuild, improved melt strength and enhanced clarity. F or r-PE, R201 improves tensile strength and bubble stability in blown film applications. F or r-PP, R202 enhances the stiffness-to-toughness balance and improves homogeneity when blending PCR with virgin resin. A recurring observation is that results are immediately visible in production, without requiring investment in new equipment - a particularly important factor in a cost-sensitive market. Concrete examples include a PET sheet producer that reduced scrap by 30-40% following implementation of M022400, as well as a film manufacturer that increased recycled content from 30% to 60% while maintaining process stability. Commercial collaboration & outlook Krishna Enterprises emphasizes the importance of technical support and close collaboration during implementation. Local support on dosing optimization, trial runs and process adjust- ments reduces testing time and strengthens customer confi- dence in advanced recycling solutions. Looking ahead, the distributor sees significant opportunities in high-grade r-PET for packaging and textiles, upgraded r-PE for films and pipes, and improved r-PP for injection molding in automotive and appliance segments. As Indian manufacturers expand exports and must meet international quality standards, demand for performance-enhancing recycling solutions is expected to continue growing. In this environment, solutions that enhance material perfor- mance and consistency are positioned to become an increas- ingly important enabler of competitiveness within the Indian recycling industry. Krishna Enterprises DISTRIBUTOR PROFILE 24 Nexam Chemical Annual Report 2025 Employees and work environment
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Region: North America Representative: Jim Norris According to Jim Norris at Palmer Holland, the North American recycled plastics market continues to develop, although collec- tion and sorting systems are still not fully optimized. As a result, variability in post-consumer recycled (PCR) materials remains a key challenge for both converters and brand owners. Demand for improved recycled materials is primarily driven by consumer goods applications, particularly packaging. “Pack- aging is at the tip of the spear,” Norris notes, while automotive demand has moderated in recent years. Brand-owner sustain- ability commitments and retailer scorecards are increasingly making recycled content a specification requirement rather than a “nice-to-have.” Customers are adapting product designs to meet recyclability guidelines—including mono-material constructions, reduced additive use, and increased PCR content. Adoption speed varies case by case, without clear differences between industries or regional manufacturing hubs. Customer value & applications In this environment, customers are looking for more than just the addition of recycled content. What resonates most strong- ly in discussions around Reactive Recycling™ is the potential for upcycling—improving mechanical performance such as strength, impact resistance, and ductility—rather than merely increasing PCR levels. As recycled content becomes mandatory in key segments, customers seek the lowest-cost path to compliance; meeting regulatory and brand requirements while protecting product performance and margins. This includes redesigning products to meet recyclability rules - moving toward mono-material con- structions, reducing additives and colorants, adjusting labels and adhesives, and increasing PCR content. Although sampling has not yet begun, early discussions indicate strong interest in solutions that improve PCR consistency and reduce qualification risk. Commercial collaboration & outlook The initial engagement between Palmer Holland and Nexam Chemical’s technical and commercial teams has been positive. As Norris highlights, PCR materials increasingly require addi- tives, compatibilization, and tighter process control compared to virgin resins, making technical support and customer educa- tion vital when introducing advanced recycling solutions. Looking ahead, packaging represents the most immediate opportunity for Reactive Recycling™ in North America. As brand-owner requirements accelerate, solutions that make recycled materials more consistent and “virgin-like”, thereby reducing qualification risk, are expected to support broader adoption and potentially unlock higher-value applications over time. This may eventually extend into industrial segments as well. As sustainability commitments evolve from voluntary targets to specification requirements, Nexam Chemical is positioned to play an increasingly important role in the North American market. Palmer Holland 25 Nexam Chemical Annual Report 2025Employees and work environment
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VISION AND FUTURE OUTLOOK Mission Nexam Chemical strives to build a global business that makes plastic better and more sustainable. Our goal is to deliver profitable growth, both organically and through acquisitions, with a clear focus on results and customer value. Recycling as a Strategic Growth Engine During 2025, we established Reactive Recycling™ as the company’s central growth engine. Regulatory requirements (such as PPWR) are creating structural, long-term demand for solutions capable of upgrading recycled plastic to per- formance levels comparable to virgin resin—an area where Nexam Chemical holds a distinct technological advantage. Our priority is now to industrialize and scale these solutions. Thanks to previous investments in production, increased volumes provide significant operating leverage. The capital of over SEK 50 million raised through our fully subscribed rights issue strengthens our ability to accelerate this development by: Scaling commercial successes within recycling. Increasing the share of recurring business through integrated customer solutions. Shortening the time from pilot proj- ects to commercial volumes. Deepening relationships with global brand owners and material producers. Complementary Areas of Strength Simultaneously, our Lightweighting, High Temperature, and Aesthetics segments continue to contribute stable cash flows, technological breadth, and industrial economies of scale. These areas comple- ment Recycling strategically, particularly in applications where recycled materials are combined with requirements for low weight or extreme heat resistance. Long-term goals and shareholder value Heading into 2026 and 2027, our ambition is clear: to accelerate commercial expan- sion, double sales within the Recycling business area in each of the next two years, and strengthen profitability. By combining regulatory tailwinds with our scalable technology platform, we intend to: D rive sustained, profitable growth. A chieve improved margins through increased industrial repeatability. C onsolidate our position as a leading technology partner in circular material solutions. Given the vast addressable market we have identified specifically for additives in recycled plastics, combined with our scalable business model, we foresee continued organic growth, broadened geographical reach, and, in the long term, opportunities for targeted acquisitions. We anticipate continued structural growth within the recycling industry, where additives play a decisive role in enabling high-quality, cost-effective, and regulatorily compliant material solutions, as well as faster integration of recycled materials into demanding applications. With a strong patent portfolio and a recently bolstered cash position, Nexam Chemical is well-positioned to deliver on its plan and create long-term value for shareholders. ◾ Nexam Chemical’s vision is to be one of the most innovative and com- pelling brands globally within reactive chemistry, dedicated to driving sustainability forward. The company develops and produces additives that enhance the properties and performance of plastics, with a par- ticular focus on enabling a more circular use of materials. Accelerating the circular transition 26 Nexam Chemical Annual Report 2025 Vision and future outlook
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27Nexam Chemical Annual Report 2025Vision and future outlook
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A clear path to scalable and profitable growth F ully funded SEK 300m plan: Following our successful capital raise, the resources for execution are firmly in place. Targeted investments: Strategic allocation toward applica- tion development, market cultivation, and sales to accelerate commercialization. Disciplined balance: A rigorous focus on balancing aggressive growth with sustainable cash generation. Recycling – the primary growth engine Solving industry challenges: Directly addressing one of the plastics industry’s greatest hurdles—the often inferior quality of recycled plastic. Significant untapped potential: Vast opportunities remain within the Reactive Recycling™ portfolio. Proven product-market fit: Solid industrial validation across multiple sectors. Demonstrated customer value: Significant cost savings com- bined with a superior sustainability profile. Rapidly expanding pipeline: Strong momentum building despite historically limited investment levels. Structural tailwinds: Driven by global regulatory mandates for increased recycled content. Scalable business model with operating leverage Existing capacity: Current production infrastructure enables substantial volume growth without a proportional increase in costs. Clear profitability thresholds: Well-defined pathways to a positive operating result. High margin potential: Significant upside in margins as industrial volumes increase. Technological advantage Leading innovation: A robust R&D engine and an extensive IP portfolio. Global applicability: Technology that can be applied to a significant portion of the world’s total plastic volumes. Versatile platform: A foundation for expansion into addition- al polymers and specialized applications. Strategic growth opportunities Organic expansion: Scaling within existing core segments. Value-creating M&A: Strategic opportunities for acquisitions and partnerships to accelerate geographic reach and market share. Why invest in Nexam Chemical? Nexam Chemical is a Swedish cleantech company with significant growth potential and a clear strategic roadmap. We offer an attractive investment opportunity through: 28 Nexam Chemical Annual Report 2025 Why invest in Nexam Chemical?
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29Nexam Chemical Annual Report 2025Why invest in Nexam Chemical?
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30 Nexam Chemical’s share The highest price of the year was SEK 4.60 and occurred in January. The lowest price of the year during the year occurred in December and amounted to SEK 2.42. The last paid price, at the end of December 2025, was SEK 2.42. Nexam Chemical’s total market capital- ization, calculated based on the number of outstanding shares, amounted to SEK 196 million at the end of the year. During the year, a total of 19 million Nexam Chemical shares were traded at a value of SEK 65 million. On average, just over 76,000 shares were traded per day, which corresponds to just under 0.01 percent of outstanding shares as of December 31, 2025. Share capital Nexam Chemical’s share capital amounted to SEK 1,556,073 divided into 80,915,798 outstanding shares at the end of 2025. The company has only one class of shares and all shares have equal rights to dividends and surplus upon liquidation and are entitled to one vote per share. Authorization for new share issue The 2025 Annual General Meeting re- solved in accordance with the Board’s pro- posal and authorized the Board to, on one or more occasions during the period up to the next Annual General Meeting, with or without deviation from the shareholders’ preferential rights, decide on a new issue of shares. The issue may be made with or without provisions for contribution in kind, set off or other conditions. The total number of shares that may be issued shall not exceed 20,228,950. The dilution may, if the authorization is fully utilized, amount to a maximum of approximately 20%. The purpose of the authorization is to be able to raise working capital, accelerate business/product development and to be able to implement and finance company acquisitions and to enable issuance to industrial partners within the framework of collaborations and alliances. To the extent that the authorization is utilized for issuance against cash payment with deviation from the shareholders’ prefer- ential rights, the issue price shall be in line with the market. Shareholder The number of shareholders amounted to 4,869 at the end of 2025. Dividend For the financial year 2025, the board of directors proposes that no dividend be paid. In the coming years, it is not expected that a dividend will be paid, but available funds will be used for continued expansion of the business. ◾ Nexam Chemical’s share Nexam Chemical’s shares were listed on NASDAQ First North in 2013. In 2017, Nexam Chemical was approved for listing on Nasdaq First North Growth Market. The requirements for companies listed on Nasdaq First North Growth Market are higher and the regulations are harmonized with those applicable to the regulated market Nasdaq Stockholm. IR connector If you have any questions, please contact Ronnie Törnqvist, CEO. Phone: +46 70 625 41 85 Email: ronnie.tornqvist@nexamchemical.com 30 Nexam Chemical Annual Report 2025
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0 50 100 150 200 250 300 350 0 1 2 3 4 5 6 7 Jan Feb Mar Apr Maj Jun Jul Aug Sep Okt Nov Dec 31Nexam Chemical’s share Shareholder* Number of shares Share in % Försäkringsbolaget, Avanza Pension 8,080,926 10.0 SvenOlov Hjaelmstad 7,000,000 8.7 Veronica Wallman 3,641,225 4.5 SEB Investment Management AB 2,704,300 3.3 Nordnet Pensionsförsäkring AB 2,524,155 3.1 Lennart Holm, privately and via company 2,074,426 2.6 Claes Mellgren 1,660,663 2.1 Per Olof Andersson 1,615,664 2.0 Daniel Röme 1,463,937 1.8 Mikael Wandy Karlsson, privately and via company 1,448,625 1.8 Other shareholders (approx. 4,869) 48,701,877 60.2 Total 80,915,798 100.0 1 Nexam Chemical’s ten largest owners according to the share register maintained by Euroclear. The shareholder list includes the total publicly registered holdings for persons with a private equity interest, i.e. holdings that are held privately, via companies or within the family. Largest shareholder at 31st of December 20251 Share during 2025 Number of traded shares per month, in thousands SEK per share 31 Nexam Chemical Annual Report 2025
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The Board of Directors and the CEO of Nexam Chemical Holding AB (publ), corporate registration number 556919- 9432, hereby submit the annual report and consolidated financial statements for the financial year 1 January 2025 – 31 December 2025. The company is registered in Sweden and has its registered office in Lomma. The annual report is prepared in thousands of SEK, unless otherwise stated. BUSINESS OVERVIEW Nexam Chemical develops, manufactures, markets and sells unique crosslinking chemicals and masterbatches to plas- tic manufacturers, plastic converters and plastic recyclers. The technology of crosslinkers, chain extenders, polymer modifiers and additives that the Company develops and manufactures makes it pos- sible to cost-effectively improve the prop- erties and performance of a wide range of different types of plastics. The proper- ties that are improved include strength, flexibility, temperature resistance, lifespan and chemical resistance. Nexam Chemi- cal's technology also makes it possible to upgrade recycled plastic, which leads to a greater amount of plastic being reused. The business also includes the sale of ser- vices and know-how and other activities compatible with the above. Administration report Administration report 32 Nexam Chemical Annual Report 2025
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Multi-year comparison, parent company (kSEK) 2025 2024 2023 2022 2021 Net sales 9,987 10,804 9,106 7,270 6,800 Earnings before tax -69,689 -2,302 -8,850 -7,714 -6,337 Earnings as a% of net sales neg neg neg neg neg Balance sheet total 405,198 456,429 465,424 488,912 508,166 Equity ratio (%) 93 98 99 98 97 Multi-year comparison, Group (kSEK) 2025 2024 2023 2022 2021 Net sales 192,245 199,577 190,152 221,756 219,452 Adjusted earnings before depreciation (Adj EBITDA) 4,362 8,061 -3,054 846 7,605 Earnings before depreciation (EBITDA) 3,444 8,061 -5,856 112 6,297 Earnings before tax -15,741 -8,054 -22,011 -12,685 -5,308 Capitalized product development expenses 36,799 32,462 33,161 30,453 26,915 Cash and cash equivalents 12,168 2,882 9,056 22,875 63,601 Equity 168,171 183,311 193,055 215,621 228,064 Total assets 225,954 231,135 245,805 278,103 284,347 Equity ratio (%) 74 79 79 78 80 Return on equity (%) neg neg neg neg neg Return on total capital (%) neg neg neg neg neg Cash liquidity (%) 105 140 138 208 255 Number of outstanding shares before dilution 80,915,798 80,915,798 80,915,798 80,915,798 78,723,539 Number of outstanding shares after dilution 80,915,798 80,915,798 80,915,798 80,915,798 80,794,626 Average number of outstanding shares before dilution 80,915,798 80,915,798 80,915,798 80,915,798 78,723,539 Average number of outstanding shares after dilution 80,915,798 80,915,798 80,915,798 80,915,798 79,759,082 Number of outstanding options 1,170,000 1,170,000 380,500 380,500 3,490,087 Earnings per share before dilution (SEK) -0.19 -0.12 -0.28 -0.15 -0.07 Earnings per share after dilution (SEK) -0.19 -0.12 -0.28 -0.15 -0.07 Earnings per share before dilution (SEK) 2.08 2.27 2.39 2.66 2.90 Earnings per share after dilution (SEK) 2.08 2.27 2.39 2.66 2.82 Share price on balance sheet date (SEK) 2.46 4.24 3.36 5.06 10.65 Dividend (SEK) – – – – – Number of employees at year-end 60 53 54 60 52 Key figures Administration report 33 Nexam Chemical Annual Report 2025
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has taken place in close collaboration with customers to ensure that the developed additives work for industrial production and are commercially viable. The company divides its operations into the following product areas, which are de- fined according to their customer benefit. The areas are light-weight, high-tempera- ture, recycling and masterbatch. Light- weight, recycling and high temperature is organized within Performance Chemicals and masterbatch within Performance Masterbatch. Sales for 2025 decreased by 4% compared to the previous year, but the contribu- tion margin improved to 47% compared to 46% the previous year. The reduced volumes combined with increased sales costs to market the company's offering of additives for recycled plastic resulted in a deterioration in earnings in 2025 compared to 2024. For the full year 2025, Nexam Chemical had sales of 192 mSEK compared to 200 mSEK for 2024. Earnings before depreciation (EBITDA) amounted for the full year to 3.4 (8.1) million SEK. Cash flow from the ongoing operations for the full year amounted to SEK 11.3 (7.4) million. Financing During the y ear, Nexam Chemical received additional credits of SEK 5 million through a collaboration between the company's bank and the Export Credit Board. Ne xam Chemical announced plans to conduct a fully guaranteed rights issue, which will raise at least SEK 51.8 million before costs related to the issue have been deducted. The capital injection will be used to expand the investment and intensify commercial activities within additives for recycled plastics. Agreements and orders Ne xam Chemical began a collabo - ration for industrial recycling of PET from a global player that contributed to sales of 10 million SEK during the year. Ne xam Chemical began a collabo - ration with Verdofoam in bio-based plastics. Ne xam Chemical received its first series production order from Germany for PET-based materials. Ne xam Chemical signed a distribu - tion agreement with Palmer Holland. Palmer Holland will represent Nexam Chemical's product portfolio in North America. Other external factors The current recession has meant that the company's customers have had an in- creased focus on liquidity and profitability and are not as inclined to increase the use of recycled plastic as new plastic has been cheaper than before. The strong focus on liquidity and prof- itability has resulted in the company's THE GROUP The legal structure of the group consists of the parent company Nexam Chemical Holding AB (publ) reg. no. 556919-9432, whose operations include group-wide functions and owning and managing the shares in the subsidiaries Nexam Chemical AB, reg. no. 556784-6711 and Nexam Performance Masterbatch AB, reg. no. 556376-3035, with their respec- tive subgroups. All companies in the group are 100 percent owned. MAJOR EVENTS IN 2025 Operations have continued according to the decided strategy. The decided strategy entails continued focus on business development within existing businesses and increasing awareness and moving into commer- cial collaborations within additives for recycled plastic. During the year, Nexam Chemical has continued with strict cost control, recipe optimization and rational- ization of working capital. The work of marketing the group's ad- ditives for recycled plastic has achieved commercial breakthrough during the year and the sales value amounts to just over 23 million SEK on an annual basis, which is an increase of over 200% compared to 2024. During the year, Nexam Chemical has initiated several commercial collab- orations within additives for recycled plastic, which have not yet contributed to sales to any great extent. The work on recipe optimization and cost control has resulted in the company's margins continuing to strengthen and amounting to 47% (46%) for the full year. The rationalization of working capital continued to yield results during the year, and the value of inventory was SEK 4 million lower at year-end because of the improved working method. The company's product development has continued according to plan during the year, which has meant that resources have been concentrated on developing a standard range of additives for recycled plastic. Product development during the year has been based on clear customer needs and the development of additives Nexam Chemical Holding AB Nexam Chemical AB Performance Masterbatch (Plasticolor Sweden AB) Plasticolor Förvaltning AB Nexam St Andrews Ltd Plasticolor Hungary Kft Plasticolor Polska Sp z.o.o. Administration report 34 Nexam Chemical Annual Report 2025
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customers having lower inventory levels than before and placing even greater em- phasis on the business calculation initially. This means that customers demand that switching to Nexam Chemicals' products be profitable from the first delivery. The general uncertainty linked to, among other things, the outcome of Russia's offensive war in Ukraine and the new political leadership in the US and the unclear trade rules that this has entailed means that the company's customers re- main restrictive in making commitments regarding future orders. THE ORGANIZATION Nexam Chemical's most important suc- cess factor is its staff. It is important for Nexam Chemical to retain its staff and at the same time develop the organization to meet future changes. It is important that all parts of the organization are market-oriented and work with the cus- tomer in focus. This should characterize the organization both in terms of product development and the service level within all parts of the organization so that the company can understand and meet cus- tomer needs. The company conducts annual em- ployee surveys to identify and monitor well-being, health, etc. to capture areas for improvement from the employees' perspective. The average number of employees in the Group during the year was 57 (53), of which 9 (9) were women. The number of employees at the end of the year was 60 (53) full-time employees. Of the total of 60 (53) employees at the end of the year, 9 (9) were women. NEXAM CHEMICAL SHARE Nexam Chemicals' share has been listed on Nasdaq First North since April 2013 and listed on Nasdaq First North Growth Market since May 2017. The share is trad- ed under the trading name NEXAM. As of December 31, 2025, the share capital amounted to SEK 1,556,073 divided into 80,915,798 shares. There is only one class of shares. Each share entitles the holder to one vote at the Annual General Meeting, and all shares have equal rights to a share in the Company's assets and results. Nexam Chemical is not aware of any agreements between shareholders that may result in restrictions on the right to transfer shares in the Company. COMPENSATIONS The Annual General Meeting decides on remuneration for the Chairman of the Board and other members. The Annual General Meeting also decides on guide- lines for remuneration for the CEO and other senior executives. For further infor- mation on the year's remuneration, see Note 11. The Board proposes that remu- neration for 2026 be decided according to the same principles as for 2025. INCENTIVE PROGRAM The company has an ongoing incentive program (warrant program 2024/2027) comprising 1,170,000 warrants, each of which entitles the holder to subscribe for one new share. All warrants have been issued at market value, calculated accord- ing to the “Black Scholes” formula. For the 2024/2027 warrant program, the option price was 0.16 and the earliest redemption is 2027-09-01 and the strike price is 6.00. ENVIRONMENT AND WORKING ENVIRONMENT Nexam St Andrews Ltd conducts licensed operations at its facility in Cupar, Scotland, as well as at its operations in Lomma. Nexam Chemicals' commitments include minimizing emissions of volatile organ- ic compounds to air. Emissions to the sewage system are to be maintained at zero levels. The company measures and monitors wa- ter consumption and energy efficiency at each production site monthly. The results are presented to the board of directors monthly, and measures are taken and followed up. In addition, Nexam Chemical AB has developed a Work Environment Policy. The policy contains guidelines for Nexam Chemical's systematic preventive work with work environment issues, safety for its employees and customers and the environment. Nexam Chemical works actively to ensure that the Company complies with laws and regulations, including registration of products covered by REACh . REACh stands for Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 De- cember 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals. During the year, the company has con- tinued to work on certification according to EcoVadis . The company has received a bronze rating in the annual evaluation. Nexam Chemical strives for diversity and equality in the workplace. Parts of the Group have entered into collective agreements and other Group companies offer their employees terms and condi- tions that are like those stated in collec- tive agreements. Individual salary setting is applied based on individual work performance. Skills development in the Company is individually based to match current and future work tasks. DISPUTES In early 2025, the Company received a claim from a smaller customer alleging that the Company's products were not in accordance with the specification. Nexam Chemicals and appointed legal counsel considered that there wasn´t any legal ba- sis for this claim and disputed the claim. The customer chose not to answer Nexam Chemicals' questions and the claim from the customer is deemed to be dismissed. OUTLOOK FOR 2026 In the coming year, Nexam Chemical will continue to work primarily on business development by offering new and exist- ing customers the company's existing products to further establish continuous sales. Nexam Chemical will continue to focus and intensify the work on the sale of additives for recycled plastic. The company had a large increase in sales for additives for recycled plastic in 2025 and experiences that the interest continues to grow from customers to test and evaluate the company's products in recycling. The company will continue to concentrate on increasing growth, while maintaining margins, and the company estimates that the largest growth areas in 2026 will be in additives for recycled plastic and an Administration report 35 Nexam Chemical Annual Report 2025
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increase in business in color concentrates in and around Poland. PROPOSAL FOR THE TREATMENT OF THE COMPANY'S AVAILABLE FUNDS The following amounts in SEK are avail- able to the Annual General Meeting: Share premium fund 551,179,823 Retained earnings - 104,757,180 Profit for the year - 69,688,560 376,734,083 The board of directors proposes that SEK 376,734,083 be carried forward. Accordingly, no dividend is proposed. FINANCIAL INFORMATION Revenue and profit The Group's sales for 2025 amounted to 192,245 (199,577) thousand SEK . During 2025, the Company had a negative sales development of 4%. Within Performance Masterbatch sales decreased by 3% and Performance Chemicals by 4%. The decreased sales are a consequence of headwinds in the general economy and that customers continue to optimize their inventory levels. The Group's other operating income during the year was 1,055 (833) thousand SEK and relates to exchange rate gains. Operating expenses decreased in 2025 and amounted to -206,337 (-207,737) thousand SEK. Costs for raw materials and supplies have decreased to -101,849 (-107,175) thousand SEK. Other exter- nal expenses have increased to -40,951 (-39,504) thousand SEK. Personnel expenses for the year have increased to -44,779 (-43,709) thousand SEK. The Group's operating profit amounted to -13,036 (-7,327) thousand SEK. Net financial items amounted to -2,705 (-729) thousand SEK and mainly related to interest expenses on loans and financial leasing. Income tax amounted to -789 (-954) thousand SEK. Profit for the year amounted to -16,529 (-9,009) thousand SEK. Financial position The Group's total assets at the end of the year amounted to 225,954 (231,135) thousand SEK. Cash and cash equivalents on the balance sheet date, 31 December 2025, were 12,168 (2,882) thousand SEK and in addition there was an overdraft facility of 25,000 thousand SEK, of which 13,703 thousand SEK is unutilized. As of 31 December 2025, equity amounted to 168,171 (183,311) thousand SEK and the equity/assets ratio was 74 (79) percent. Equity per share was 2.08 (2.27) SEK. Total liabilities to credit institutions amount to 24,837 (16,600) thousand SEK and consist mainly of a utilized overdraft facility of 11,297 thousand SEK and a loan relating to the property of 8,925 thousand SEK where the Company conducts its oper- ations in Lomma. Liabilities relating to leasing commitments amounted to SEK 5,842 (6,496) thousand. Cash flow Cash flow for the year was 3,163 (-5,344) thousand SEK. Cash flow before chang- es in working capital amounted to 122 (6,303) thousand SEK and adjusted for changes in working capital by 11,287 (7,426) thousand SEK. Investments in intangible assets have affected cash flow negatively by -5,497 (-3,939) thousand SEK, of which the majority relates to capi- talized development costs for the develop- ment of additives for recycled plastic. Investments made in tangible fixed assets have affected cash flow negatively by -4,070 (-5,961) thousand SEK. Amortiza- tion of loans has had a negative impact on cash flow of -4,296 (-4,227) thousand SEK. Borrowings have had a positive impact on cash flow of 5,739 (1,170). Investments Total fixed assets at the end of the year were 150,672 (156,339) thousand SEK. The year's investments for tangible fixed assets amounted to 4,070 (5,961) thou- sand SEK and for intangible fixed assets 5,497 (3,939) thousand SEK. Investments in tangible fixed assets mainly relate to a new color matching mask in Sweden and renewed leasing and replacement of company cars. Investments in intangible fixed assets mainly relate to capitalized development costs in the form of internal time spent. Research and development The company has conducted research and development work during the year. This work concerns the development of molecules and application and process development for the production of the molecules. Development work during the year has primarily concentrated on addi- tives for increased use of recycled plastic. Costs relating to research are capitalized on an ongoing basis, while development work is capitalized and then amortized over the life of the patent. During the year, the company has capitalized internal costs of 6,629 (2,733) thousand SEK, which relate to time spent, and external costs of 261 (500) thousand SEK , which mainly relate to costs for consultants who have conducted development on behalf of the company. Risks and risk management All business activities are associated with risks. Risks that are managed well can lead to opportunities and value creation, while risks that are not managed well can lead to damage and losses. Nexam Chemical operates on both a regional and global market, developing, marketing and selling crosslinkers for polymers and color masterbatches, as well as services to professional users. Through its operations, the Company is exposed to a variety of external and internal risks. Risk management is therefore an import- ant part of the governance and control of the Company. Nexam Chemical's risk management covers both strategic and operational risks, risks of non-compliance with laws and regulations, and risks of er- rors in the Company's reporting, including financial reporting. The risks can mainly be divided into market-related, operation- al-related and financial risks. Continuous work is carried out at various levels within the Company to identify all significant risks and to assess how they should be managed. Mark et-related risks are primarily managed at the board and man- agement level. Board meetings and updates between management and the board are held via formal monthly meetings and the CEO and Chairman of the board have weekly telephone meetings. In this case, if the issues cannot wait until the scheduled meet- ings, meetings will be held as soon as possible. Administration report 36 Nexam Chemical Annual Report 2025
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Oper ational risks are primarily man - aged at management level. Meetings with the management team are held weekly where these risks are discussed and measures are taken to manage them. F unction-specific risks within Opera - tions and Finance & Administration are managed within each function and these are also discussed at weekly meetings. L egal risks are managed primarily at management level in collaboration with external lawyers and advi- sors, but also at board level when necessary. Risk s regarding financial reporting are primarily managed at management level by the Company's CEO and the CFO in collaboration with external advisors. F inancial risks are mainly managed at board and management level The risks described below are not ranked in any particular order and the description does not claim to be complete. Market-related risks Government requirements and political decisions. Nexam Chemical has all the necessary permits for the conduct of its operations. The operations are conducted in accor- dance with applicable laws, but also with consideration for environmental and ethical requirements. However, there is no guarantee that new requirements from authorities may not make it more difficult to conduct the operations or that cur- rently applicable permits will be renewed on the same terms as before or that the Group's currently assessed adequate insurance coverage will be sufficient. The company has a dedicated person in the group management who monitors and evaluates so that the company is updated and complies with the various regulatory requirements in each country. The company works with well-established insurance companies and annually takes external help from an experienced insur- ance broker who evaluates the company's insurance coverage to ensure that it covers relevant areas. Political decisions such as subsidies for green energy and changes to the rules for plastic recycling have an impact on Nex- am Chemical's ability to sell its chemicals. Nexam Chemical has sales in several different markets. Changes in laws and regulations, such as customs regulations, export regula- tions and other laws and regulations in countries where the Company operates and where the Company's products are sold, may negatively affect the business. Nexam Chemical is also affected by po- litical and economic uncertainties in the countries in which the Company operates. The above may have negative conse- quences for Nexam Chemical's operations and results. The increased uncertainty in the geo- political environment contributes to an increased risk that deals will not be concluded or will be postponed because of changes in tariff rates and that estab- lished trade rules will be challenged and put out of action. The company has significant sales (more than 5 million SEK) to more than 10 coun- tries, which entails some risk spreading and in cases where the company does not have its own personnel on site in the country, there is close cooperation with agents and distributors who continuously update Nexam Chemical on changes in laws and regulations in each country. Global economic conditions. Nexam Chemical's sales are partly depen- dent on the global economy. A prolonged economic downturn with reduced willing- ness to innovate among customers could lead to a decrease in demand for the Com- pany's products. This could result in orders not being received, being withdrawn or being postponed. A weakened economy could therefore have a negative impact on Nexam Chemical's operations. The current recession means that the transition to more recycled plastic is at risk of being delayed. This could mean that sales of Nexam Chemical's addi- tives for recycling plastic, which would otherwise be incinerated, will not develop at the same pace as they would have in a better economic climate. The uncertainty in values resulting from Russia's offensive war against Ukraine, the conflict in the Middle East, the uncertain political landscape, and new political lead- ership in the United States have meant that uncertainty remains high in markets where Nexam Chemical operates. The ambition to increase the use of recy- cled plastic, as well as upcoming regula- tions primarily in Europe, are expected to have a positive impact on demand for Nexam Chemical's additives to increase the recycling rate and demand for the company's paints for recycled plastic. The changing security situation in the world has meant that the transition to more sustainable consumption is not as high on the agenda of the world's decision-makers. This entails an increased risk that the expected increase in recycled plastic will not occur at the same rate as previously forecast. The reduced inter- est in the green transition means that Nexam Chemical's success will be based on the fact that the company's additives for recycled plastic must bring significant economic benefits to the company's cus- tomers from the first delivery. The interest in paying a green premium for the use of additives for recycled plastic is not as great as previously expected. Competition. There is fierce competition in the plastics industry, even though the market for Nex- am Chemical's type of polymer crosslinker consists of relatively few competitors. Nexam Chemical's products aim to out- compete other systems and solve custom- er problems in a new and more econom- ical way. However, it cannot be ruled out that other systems and products may also be developed by competitors who may in the future compete with Nexam Chemi- cal. If Nexam Chemical is unable to adapt its operations and is at the forefront of product development, there is a risk that the Company will lose competitiveness, which would negatively affect the Compa- ny's development opportunities. The competition for plastic coloring is characterized by fierce competition where quality, service level, price and delivery time are crucial. For Nexam Chemical to Administration report 37 Nexam Chemical Annual Report 2025
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be successful, the company must perform well in these areas. Technical risks. The polymer modification market is expected to continue to undergo tech- nological shifts and to be subject to changing market trends in the future. Developments may result in technical problems that will mean that it will take longer than planned for new products to reach the market and that the Company's costs may be higher than estimated, both because of costs during the development phase and of delayed market introduction. If the Company were to fail to develop and launch products based on the research and development work being conducted, there is also a risk that the value of assets will need to be revised. Company-specific risks Ability to handle growth. Nexam Chemical's operations may grow through increased demand for the Company's products, which would place high demands on management and the operational and financial infrastructure. The Company currently has a small orga- nization. In order to ensure manufactur- ing and delivery to customers in the event of increased demand, it is important that the Company constantly works to have effective planning and management pro- cesses. In order to be able to handle rapid growth, the Company is also partly depen- dent on being able to procure contract manufacturing capacity and manage and control the contract manufacturers that Nexam Chemical chooses to work with. If the Company fails to adapt its organiza- tion, processes and capacity to increased demand, this could have negative effects on the Company's sales, results and finan- cial position. Market acceptance of newly developed products. Nexam Chemical intends to continuously develop and launch new products on the market. There is always a risk that new products will not be received positively by the market, or that competing products or solutions launched by other players may have a better impact. Product liability. Nexam Chemical sells its products to the greatest extent according to specifi- cation and with responsibility regarding purity requirements. In cases where the product deviates from the specifica- tion, Nexam Chemical will replace the buyer with a new product or rework the returned product so that it falls within the specification. Although Nexam Chemical believes that the Company has a well-de- veloped process for product development with special documentation systems and high demands on systematic routines, it cannot be ruled out that any defects in the Company's products could give rise to liability and claims for damages against the Company. Nexam Chemical may therefore be liable for damage caused by its products. This is normally covered by insurance, but it cannot be ruled out that such liability could negatively affect the Company's position. Dependence on key personnel and employees. Nexam Chemical is highly dependent on the Company's senior executives and other key personnel. If the Company were to lose any of its key employees, this could delay or cause interruptions in develop- ment projects or the commercialization of the Company's products. The Compa- ny's ability to attract and retain qualified personnel is of crucial importance to its future success. Although Nexam Chemical believes that the Company will be able to attract and retain qualified personnel, there can be no guarantee that this will be possible on satisfactory terms considering the competition from other companies in the industry as well as universities and other institutions. Customers and collaboration agreements. Nexam Chemicals' sales are mostly conducted in-house, but also through distributors and resellers. These partners are important for the Company's future development, as they cover markets that are otherwise difficult for the Company to develop. There is no guarantee that the companies with which Nexam Chemical has signed or will sign agreements will be able to fulfill their commitments under these agreements. Furthermore, there is a risk that Nexam Chemical's size and finan- cial position may affect the Company's ability to enter into cooperation agree- ments with strategic partners and obtain important customer contracts. There can be no guarantee that existing agreements will not be terminated or declared invalid or that there will not be changes to agree- ments entered into. Failure to enter into cooperation agreements or cooperation partners who fail to fulfill their commit - ments may result in reduced or non-exis- tent revenues for Nexam Chemical. Patents and intellectual property rights. Patents, which constitute an important part of Nexam Chemical's assets, have a limited lifespan. The Company cannot guarantee that the existing and/or future patent portfolio and other intellectual property rights held by the Company will provide adequate commercial protection. If Nexam Chemical is forced to defend its patent rights against a competitor, this could result in significant costs, which could negatively affect the Company's operations, results and financial position. Furthermore, there is always a risk in this type of business that Nexam Chemical may infringe or be alleged to infringe pat- ents held by third parties. Other parties' patents may also limit the possibilities for one or more of the Company's products. The uncertainty associated with patent protection means that the outcome of such disputes is difficult to predict. Negative outcomes of intellectual proper- ty disputes could result in loss of protec- tion, prohibition of continuing to use the current right or obligation to pay damag- es. In addition, the costs of a dispute, even in the event of a favorable outcome for the Company, could be significant, which could negatively affect Nexam Chemical's results and financial position. The above could result in difficulties or delays in commercializing future products and thus also difficulties in generating revenue. The same applies to other intellectual proper- ty rights such as trademarks. Nexam Chemical is also to some extent dependent on know-how and trade secrets, which are not protected by law in the same way as intellectual property Administration report 38 Nexam Chemical Annual Report 2025
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rights. The Company uses confidenti- ality agreements and thereby strives for far-reaching protection for sensitive information. However, it is not possible to fully protect itself against unauthorized dissemination of information, which entails a risk that competitors may gain access to and benefit from the know-how developed by the Company to the detri- ment of Nexam Chemical. Nexam Chemical works with external lawyers who continuously work to evalu- ate whether relevant patents are in place within each region. Dependence on suppliers. The manufacture of Nexam Chemical's products takes place in Nexam Chemi- cal's own production facilities in Sweden, Scotland, Hungary and Poland, but also, when necessary, at subcontractors, mainly in Europe. For Nexam Chemical to be able to deliver its products, the Company is dependent on raw materials, products and services from a third-party meeting agreed requirements regarding, for exam- ple, quality and delivery time. Incorrect or non-existent deliveries from suppliers may mean that Nexam Chemical's pro- duction and/or delivery are delayed, which may mean reduced or non-existent sales. The company aims to always have at least two suppliers of key raw materials to reduce dependence on individual suppli- ers. However, in a few cases, the choice is limited and the company then works in close collaboration with the supplier. Risks relating to financial reporting. The most significant risks of errors in financial reporting relate primarily to the carrying value of intangible fixed assets in the form of acquired intangible assets and tangible assets in subsidiaries. If the carrying value of these assets deviates negatively from fair value, this will result in an impairment loss, which will have negative effects on the Company's results and financial position. As of December 31, 2025, the assessment is that the carrying value of these items does not exceed fair value. The carrying value as of Decem- ber 31, 2025, is based on the company achieving the goals and budget set for 2026. Should the company not develop in a financially positive direction during the year, there is an imminent risk that an impairment loss will need to be made on the intangible assets. Financial risks The Group is exposed to various types of financial risks through its operations, such as market, liquidity and credit risks. Mar- ket risks consist mainly of interest rate risk and currency risk. The Company's Board of Directors is ultimately responsible for the exposure, management and monitoring of the Group's financial risks. The Board of Directors establishes the framework that applies to the exposure, management and monitoring of financial risks, and these frameworks are evaluated and revised an- nually. The Board of Directors can decide on temporary deviations from the estab- lished frameworks. For other information, please refer to Note 4. Future capital needs Nexam Chemical's ability to meet future capital needs is largely dependent on being able to demonstrate that the company can become profitable even if growth fails. Failure to achieve profitabil- ity entails a risk that new financing will have to be obtained. Nexam Chemical has never reported a positive full-year result to date, and it cannot be ruled out that the Company may need additional capital injections until the business achieves a positive result and cash flow. It cannot be guaranteed that the Company will be able to raise the necessary capital even if the Company's development is positive. The company announced before the end of the year that it intended to conduct a rights issue that is expected to provide a capital injection of at least SEK 51.8 million before deduction of issue costs. The implementation of the rights issue requires approval at an extraordinary general meeting. Subsequent events after the end of the financial year The company's rights issue was approved at an extraordinary general meeting on January 19 2026. The rights issue provided a capital contribution of SEK 51.8 million before costs attributable to the issue were deducted. The capital injection will be used to continue developing commercial business in additives for plastic recycling. Nexam Chemical plans to increase marketing efforts in the area and to provide more re- sources to handle the increased commer- cial interest in the company's additives for recycled plastic. The uncertain geopolitical situation combined with unclear trade rules may cause fluctuations in the company's sales throughout the year. However, Nexam Chemical believes that the changed trade barriers will not directly affect the com - pany's sales, but unclear trade rules and changing patterns make it more difficult to assess the prospects in the short term. PARENT COMPANY The parent company's income of 9,987 (10,804) thousand SEK refers to invoiced management fees for subsidiaries. In 2025, the parent company's operating expenses increased by 422 thousand SEK compared to the previous year. Personnel expenses decreased by 478 thousand SEK, -6,317 (-6,795) thousand SEK, and other external expenses increased by 900 thou- sand SEK, -7,437 (-6,537) thousand SEK. The parent company made an impairment loss of SEK 50,000 thousand on shares in subsidiaries. The impairment loss is a con- sequence of the expected growth in color masterbatch not occurring because of the recession in the general plastics industry. Net financial items amount to -921 (227) thousand SEK, which refers to currency differences. The parent company's cash and cash equivalents amounted to -23,386 (-8,601) thousand SEK on the balance sheet date, which resulted in the parent company partially utilizing the overdraft facility of 25,000 thousand SEK. ◾ Administration report 39 Nexam Chemical Annual Report 2025
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Corporate governance 40 Nexam Chemical Annual Report 2025
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This corporate governance report has not been reviewed by the Company's auditors. The report does not form part of the formal annual financial statements. Nexam Chemical is a Swedish public limited company with its registered office in Lomma. In addition to the parent com- pany, the group consists of two wholly owned subsidiaries in Sweden and four additional companies owned through subsidiaries located in Sweden, the UK, Poland and Hungary. The company's share is listed on Nas- daq First North Growth Market. Nexam Chemical has applied the Swedish Code of Corporate Governance (the Code) since January 1, 2017 and reports no deviations from the Code for the year 2025. The term corporate governance usually refers to the rules and structure that are built up to effectively and controlledly govern and manage a limited liability company. Governance and control of Nexam Chemical is divided between the shareholders at the annual general meeting, the board of directors and the CEO, and is regulated in legislation (in- cluding the Swedish Companies Act), the articles of association, the Nasdaq First North rules for issuers and the Swedish Code of Corporate Governance. The code is available at www.bolagsstyrning.se. In addition to legal control and governance principles , Nexam Chemical is also affect- ed by several internal governance docu- ments, including instructions and work rules for the CEO and board of directors, as well as internal policies and guidelines. Corporate governance Shareholder The share capital on 31 December 2025 amounted to SEK 1,556,073 divided into 80,915,798 shares. Each share entitles to one vote and each voting shareholder may vote at a general meeting for the full number of shares owned and represented by him/her without limitation in voting rights. All shares carry equal rights to a share in the Company's assets and profits. On the closing date, Nexam Chemical had 4,869 (5,204) shareholders. Of these, one shareholder has direct and indirect holdings that constitute more than nine percent of the votes and capital, which is the insurance company Avanza Pension, which holds 10.2%. No shares are held by the company itself. For further informa- tion about the share and shareholders, see pages 30-31 and Nexam Chemical's website. Articles of association The Articles of Association of Nexam Chemical stipulate that the Company shall develop, manufacture, market and sell chemical substances and carry out related activities. The Board of Directors is based in Lomma and the Company's financial year is the calendar year. The Articles of Association contain provisions on, among other things, the number of shares, the number of board members and auditors and the annual general meeting. The Articles of Association do not contain any specific provisions on the appointment or dismissal of board mem- bers or on amendments to the Articles of Association. The Articles of Association in their entirety can be downloaded at www.nexamchemical.com. Nexam Chemical Holding AB Nexam Chemical AB Performance Masterbatch (Plasticolor Sweden AB) Plasticolor Förvaltning AB Nexam St Andrews Ltd Plasticolor Hungary Kft Plasticolor Polska Sp z.o.o. Corporate governance 41 Nexam Chemical Annual Report 2025
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General Meeting Shareholders exercise their influence over Nexam Chemical at the Annual General Meeting, which is the highest deci- sion-making body in Nexam Chemical. The Annual General Meeting is convened at least once a year and decides, among other things, on the treatment of the Company's and the Group's balance sheet and income statement including the allo- cation of the Company's results, discharge from liability for the Board of Directors and CEO, election of the Board of Directors and auditor, fees to the Board of Directors and auditor and how the Nomination Committee is to be appointed. Amend- ments to the Articles of Association also require a resolution at the Annual General Meeting. In order to participate in the Meeting, the shareholder who wishes to be present at the Meeting, in person or by proxy, must be entered in his or her own name in the share register no later than five business days before the Meeting and must notify the Company of his or her intention to participate in the Meeting no later than the date stated in the notice of the Meeting. The Annual General Meeting is held in Lund or Lomma during the first half of each year. In connection with the third quarterly report, Nexam Chemicals share- holders are informed of the time and place of the Annual General Meeting and of their right to have a matter discussed at the meeting. Notice of the Annual General Meeting is published no earlier than six and no later than four weeks before the meeting. An extraordinary general meeting may be held if the Board of Directors deems it necessary or if the Company's auditors or owners of at least 10 percent of the shares request it. Annual General Meeting 2025 Nexam Chemicals' Annual General Meet- ing was held in Lund at the Elite Hotel on Tuesday, May 13, 2025. At the meeting, 12 (14) shareholders were represented by proxy or in person. These represented approximately 17 (13) percent of the total votes. In essence, the following decisions were made: The P arent Company's and the Group's income statements and balance sheets were adopted. Dischar ge from liability for the board members and the CEO. R e-election of Cecilia Jinert Johansson, Magnus Wikström, Lennart Holm and Martin Roos as board members. Cecilia Jinert Johansson was elected as chairwoman of the board. R e-election of Deloitte AB as auditor. Boar d fees are presented in the table on page 38 and in Note 11 of the annual report. Guidelines f or remuneration of senior executives. A uthorization for the issuance of shares. P rocedures and instructions for the nomination committee. The minutes of the Annual General Meeting were presented on the website within one week of the meeting. The materials from the meeting, such as the notice, minutes and information about the nomination committee, can be found on Nexam Chemical's website. The full resolutions of the meeting as above are available at the Company's office, Indus- trigatan 27 in Lomma, and are sent to shareholders who request them. Nomination Committee The Nomination Committee's primary task is to submit proposals to the Annual General Meeting regarding the compo- sition of the Board of Directors, which are then decided by the Annual General Meeting. The Nomination Committee's work begins with reviewing the evalua- tion of the Board's work that the Board has commissioned. The Nomination Com- mittee's work is characterized by open- ness and discussion in order to achieve a well-balanced Board of Directors. The Nomination Committee then nominates members to the Board of Directors for the upcoming term of office and submits proposals for the Board's remuneration. The Nomination Committee also submits proposals for the election and remunera- tion of the auditor. Nomination Committee for the 2026 Annual General Meeting According to a resolution of the 2025 Annual General Meeting, Nexam Chemi- cal's Nomination Committee for the 2026 Annual General Meeting shall consist of three members representing the three largest shareholders as of the last day of August 2025. The composition of the Nomination Committee was announced on 14 October 2025. The members of the Nomination Committee and the owners who appointed them are shown in the table below. The Chair of the Nomination Committee for the 2026 Annual General Meeting is Anita Otterheim. The Nomination Committee has held 5 minutes-recorded meetings and in addi- tion email and telephone contact prior to the 2026 Annual General Meeting. The Share holders General Meeting Board of Directors CEO and Group Management Nomination committeeAuditors Corporate governance 42 Nexam Chemical Annual Report 2025
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Nomination Committee's proposal is pre- sented in the notice of the 2026 Annual General Meeting, which is also available on the Company's website, together with a reasoned statement regarding the pro- posal for the Board of Directors. Board The Board of Directors and, by extension, the CEO, manage the company's affairs on behalf of the owners. The Board of Directors appoints the CEO who is responsible for the Company's day-to- day management. The division of work and responsibilities between the Board of Directors and the CEO is clarified in the Board's rules of procedure and the CEO's instructions. The Board of Directors is appointed by the shareholders at the Annual General Meeting with a term of office from the Annual General Meeting until the end of the next Annual General Meeting. The Board of Directors manages the company on behalf of the owners by establishing goals and strategy, evalu- ating the operational management and ensuring systems for monitoring and controlling the established goals. It is also the Board's responsibility to ensure that the Company's information provision is correct, relevant and reliable. The Board of Directors has a quorum if more than half of the members are present. According to Nexam Chemical's articles of association, the Board of Directors shall consist of a minimum of three and a maximum of eight members without deputies. The Board of Directors constitutes itself at a meeting immediately after the Annual General Meeting. Chairman of the Board Nexam Chemical's board of directors is led by Cecilia Jinert Johansson, who was re-elected at the Annual General Meeting. The Chairman of the Board is appoint- ed by the Annual General Meeting. The Chairman of the Board organizes and leads the work of the Board, ensures that the Board continuously deepens its knowledge of the company, conveys the views of the owners and supports the CEO. The Chairman of the Board and the CEO prepare proposals for the agenda for the Board meetings. It is the Chairman's responsibility to ensure that the Board's decisions are implemented effectively, and that the Board's work is evaluated annual- ly and that the Nomination Committee is informed of the results of the evaluation. Board rules of procedure The Board of Directors establishes a pro- cedure for its work each year. The current procedure was adopted on 13 May 2025. The procedure is also revised as necessary. The procedure describes, among other things, the Board's responsibilities and duties, the duties of the Chairman of the Board, audit issues and specifies which reports and financial information the Board shall receive prior to each regular Board meeting. Evaluation of the board's work Under the leadership of the Chairman of the Board, the Board conducts an annual evaluation of its work. The evaluation concerns working methods and working climate, the focus of the Board's work and the availability and need for special expertise on the Board. The evaluation is used as a tool to develop the Board's work. Name Independent of the Company and company management Independent of the Company's major shareholders Total fee (kSEK) Attendance at board meetings Cecilia Jinert Johansson Yes Yes 290 13/13 Martin Roos Yes Yes 168 13/13 Lennart Holm Yes Yes 168 11/13 Magnus Wikström Yes Yes 168 13/13 Total 794 The Nomination Committee Members of the Board Members of the Nomination Committee, appointed by: Share of votes Antita Otterheim, SvenOlov Hjaelmstad 6.18% Tomas Klevbo, Veronica Wallman 4.50% Mette Gross, Holm Investment AB 2.47% Total 13.15% Corporate governance 43 Nexam Chemical Annual Report 2025
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In accordance with the Swedish Code of Corporate Governance, relevant parts of the results are reported to the Nomina- tion Committee. Board composition 2025 The Board consists of four members with- out deputies. At the 2025 Annual General Meeting, Cecilia Jinert Johansson, Lennart Holm, Magnus Wikström and Martin Roos were re-elected as Board members. Cecilia Jinert Johansson was elected as Chair of the Board. The Board members have extensive experience and expertise in chemistry as well as business develop- ment, marketing, capital raising, commu- nications and international operations. The composition of the Board meets the Code's requirements regarding indepen- dent members. The information that must be provided regarding the Board members according to section 10.2 of the Code can be found on page 88. The board's work in 2025 During 2025, Nexam Chemical's board of directors held a total of 13 minutes-re- corded meetings. Four of the meetings were held in connection with the approval of the year-end report and interim reports. Between minutes-recorded board meet- ings, the CEO and CFO have updated the board monthly by telephone on the status of the business. On occasions when a member was unable to attend, the chair- man of the board has collected views that affected decisions in advance. Important issues during the year have included strategy, capital situation, communication with investors, developments in additives for plastic recycling and the potential in the area, market assessments and signif- icant risks. The company's CEO and CFO regularly participate in board meetings. Other senior executives participate in board meetings when necessary. A more detailed presentation of the board members can be found on page 88 and on the Company's website www.nexamchemical.com. Remuneration Committee The Board of Directors has decided not to establish a remuneration committee, but rather that the entire Board shall fulfill the tasks of the remuneration committee. The primary task is to propose salary, other remuneration and terms of employment for the CEO. The committee develops proposals for principles for remuneration and terms of employment for other senior executives in the Group Management. The remuneration committee develops proposals for incentive programs. The re- muneration committee shall ensure com- pliance with the established guidelines for remuneration to senior executives. CEO and Group Management The CEO is appointed and receives instruc- tions from the Board. Nexam Chemicals' CEO and Group CEO is Ronnie Törnqvist. Ronnie Törnqvist is responsible for the day-to-day management as well as strategic and operational issues of the Company in accordance with the Board's guidelines and instructions. The current CEO instruction was adopted by the Board on May 13, 2025. The CEO prepares infor- mation and decision-making documents for Board meetings and is the rapporteur at the meetings. The Board continuously evaluates the CEO's work by following up on the set goals. Once a year, a formal evaluation is made and discussed with the CEO. Management composition 2025 The CEO has appointed a management team responsible for different parts of Nexam Chemicals' operations. In 2025, the group management team consisted of five people, in addition to the CEO: Chief F inancial Officer R esearch and Development Manager Quality and En vironmental Manager Business De velopment Manager for Additives for Lightweight Applications Business De velopment Manag- er for Additives for Sustainability Applications All members of the Group Management were based at the Company's head office in Sweden, except for the Quality and Environmental Manager who was based in St Andrews, Scotland. The Group Man- agement has continuous meetings where operational issues are discussed, as well as quarterly meetings where strategic issues are discussed. Each year, the Group Management prepares a business plan that is approved by the Board. A more detailed presentation of the CEO and the management team can be found on page 88. It also contains the information about the CEO that must be provided in accor- dance with section 10.2 of the Code. Auditor The management of the Board of Directors and the CEO and the financial reporting are audited by the external auditor appointed by the Annual Gener- al Meeting. The auditor is proposed by the nomination committee and elected by the meeting for a term of one year. At the 2025 Annual General Meeting, Deloitte AB was re-elected as auditor until the 2026 Annual General Meeting. The auditor in charge at Deloitte AB is the authorized public accountant Jeanette Roosberg. The auditor's assignment is to audit Nexam Chemical's annual report and accounting, as well as the manage- ment of the Board of Directors and the CEO, on behalf of the shareholders. In addition to the annual audit, the auditor reviews at least one of the Company's interim reports per year. The auditor's fee is paid according to an approved invoice. For amounts, see Note 9. Salaries, remuneration and other benefits Salaries, remuneration and other benefits for the Board of Directors, CEO and other senior executives are reported in Note 11 of the annual report. The Board's remu- neration can also be followed in the table on page 43. Guidelines for remuneration of senior executives 2025 Basic principles The Chairman and members of the Board of Directors are paid a board fee in accor- dance with the decision of the Annual General Meeting. Board fees are not paid to employees of the Group. Nexam Chemicals' starting point is that remuneration should be paid on market and competitive terms that enable senior executives to be recruited and retained. Remuneration to the CEO and other senior executives may consist of base Corporate governance 44 Nexam Chemical Annual Report 2025
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salary, variable remuneration, pension, other benefits and share-based incen- tive programs. The CEO and other senior executives are generally entitled to health insurance and a company car as well as other benefits according to local practice. Remuneration to the CEO and other se- nior executives shall be based on factors such as work duties, skills, experience, position and performance. Remuneration shall not be discriminatory on the basis of gender, ethnic background, national origin, age, disability or other irrelevant circumstances. Fixed salary The CEO and other senior executives shall be offered a fixed salary that is in line with the market and based on the individual's responsibility and conduct. Salary shall be determined per calendar year with a salary review on January 1st of each year. Variable remuneration The CEO and Group Management have been entitled to variable remuneration in 2025. Share-based incentive programs Senior executives are included in share- based option programs in the Nexam Chemical Group. Share-based incentive programs are reported in the annual re- port and the full proposals for the annual general meeting. The board shall annually evaluate whether to propose additional share-based incentive programs to the annual general meeting. Pension The CEO is entitled to a defined contri- bution pension provision equivalent to 28% of pensionable salary. Other senior executives are entitled to annual pen- sion provisions, which correspond to the amounts according to local practice. Termination and severance pay For the CEO and other senior executives residing in Sweden, a mutual notice period of no more than six months ap- plies. Severance pay, in addition to salary during the notice period, occurs and may, in addition to fixed salary during the notice period, amount to a maximum of six months' salary for the CEO and other senior executives. Deviations from the guidelines The board shall be entitled to deviate from the guidelines if, in an individual case, there are special reasons for doing so. The Board's report on internal control and risk management regarding financial reporting This report on internal control over finan- cial reporting is submitted by the board of Nexam Chemicals and has been prepared in accordance with the Swedish Code of Corporate Governance. Background According to the Companies Act and the Code, the board of directors is responsible for internal control. Control environment The basis for internal control is the overall control environment. A good control environment is based on an organization with clear decision-making paths where responsibilities and authorities are well defined. Within Nexam Chemical there are policies, guidelines and process descriptions for the essential elements of the business flow from transaction man- agement to accounting and preparation of external reporting. Risk assessment The Board is responsible for identifying and managing significant financial risks and risks of errors in external reporting. The Board evaluates the need for risk management annually. Control activities The main purpose of control activities is to prevent and detect errors as early as possible so that any deficiencies can be addressed. Routines and activities have been designed to detect and manage the most significant risks related to finan- cial reporting. The Group companies are followed up by the CEO and CFO through regular reports. The Board and Group Management receive monthly reports in which the CEO and CFO account for the past period regarding the Group's results and financial position. Monthly finan- cial statement and annual report work is well defined and reporting is carried out according to standardized reporting templates including comments regarding all significant profit and loss and balance sheet items. At present, the Company's size or risk exposure does not justify its own internal audit. The Board of Directors assesses that with the procedures in place for monitor- ing and control, there is currently no need for this. Information and communication Nexam Chemical's procedures and systems for providing information aim to provide the market with relevant, reliable, accurate and up-to-date information about the Company's development and financial position. The Board of Directors has established an information policy that specifies what should be communi- cated, by whom and in what manner the information should be issued to ensure that external information is correct and complete. Financial information is provided regularly in the form of interim reports, annual reports and press releases on news that may affect the share price. Information and communication are pub- lished predominantly in both Swedish and English on the Company's website. Follow-up Compliance and effectiveness of internal controls are monitored on an ongoing basis. The company's financial situation and strategy regarding the financial posi- tion are discussed at each board meeting, where the board receives detailed month- ly reports regarding the financial position and development of the business. Each interim report is analyzed and approved by the board before publication. Activities 2025 Nexam Chemical continuously works to minimize risks by removing redun- dant manual steps from the Company's processes and having a clear structure in decision-making paths, authorities and responsibilities. ◾ Corporate governance 45 Nexam Chemical Annual Report 2025
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Consolidated income statement Amounts in kSEK Note 2025 2024 Sales Net sales 5,6 192,245 199,577 Other operating income 1,055 833 8 193,301 200,410 Operating expenses Raw materials and consumables -101,849 -107,175 Operating expenses -40,951 -39,504 Personnel cost 9, 10 -44,779 -43,709 Depreciation and write-down of tangible and intangible assets 11 -16,480 -15,386 Other operating expenses -2,278 -1,964 Operating profit/loss 12 -13,036 -7,327 Financial items Financial income 680 2,460 Financial costs 13 -3,385 -3,189 Profit/loss before tax 13 -15,741 -8,055 Income tax -789 -954 Profit/loss for the period 14 -16,529 -9,009 Other comprehensive income Items that may be reclassified to profit or loss Translation differences on foreign subsidiaries 1,390 -923 Sum of other comprehensive income, net after tax 1,390 -923 Comprehensive result for the period -15,139 -9,931 The profit for the year as well as comprehensive income are wholly attributable to the parent company's shareholders. Earnings per share (SEK) Basic earnings per share (SEK) 15 -0.19 -0.12 Diluted earnings per share (SEK) -0.19 -0.12 Average number of basic shares 80,915,798 80,915,798 Average number of diluted shares 80,915,798 80,915,798 Consolidated financial statement 46 Nexam Chemical Annual Report 2025
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Consolidated balance sheet Amounts in kSEK Note 2025-12-31 2024-12-31 ASSETS Fixed assets Intangible assets Balanced expenses for product development 16 36,799 32,462 Patent 17 6,981 7,477 Goodwill 18 45,943 45,943 Market positions 19 8,433 12,833 98,155 98,715 Tangible assets Buildings and land 20 33,730 35,530 Machines and other technical facilities 21, 34 12,197 15,657 Equipment, tools and installations 22, 34 5,843 5,826 Improvement expenses on someone else's property 23 719 583 52,489 57,597 Financial assets Other long-term receivables 25 28 28 28 28 Total fixed assets 150,672 156,339 Current assets Inventory, etc 26 Raw materials and supplies 24,239 28,600 Goods under production 410 – Finished goods and merchandise 5,711 5,752 30,360 34,352 Short-term receivables Accounts receivable 27 23,538 31,527 Current tax claim – 44 Other claims 7,923 4,799 Prepaid expenses and accrued income 28 1,293 1,192 32,754 37,562 Cash and cash equivalents 29 12,168 9,020 Total current assets 75,283 80,934 TOTAL ASSETS 225,954 237,273 Consolidated financial statement 47 Nexam Chemical Annual Report 2025
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Amounts in kSEK Note 2025-12-31 2024-12-31 EQUITY AND LIABILITIES Equity 30 Share capital 1,556 1,556 Other contributed capital 423,760 423,760 Reserves -514 -1,904 Balanced profit including profit for the year -256,631 -240,101 Total equity 168,171 183,311 Long-term liabilities Debts to credit institutions 32, 33 10,636 13,560 Lease liability 34 3,953 4,737 Other long-term liabilities 35 569 558 15,158 18,855 Current liabilities Debts to credit institutions 32, 33 14,201 9,178 Lease liability 34 1,889 1,759 Accounts payable 13,353 11,263 Current tax liabilities 13 – Other debts 6,674 5,262 Accrued costs and prepaid income 36 6,497 7,645 42,625 35,107 TOTAL EQUITY AND LIABILITIES 225,954 237,273 Consolidated balance sheet (cont.) Consolidated financial statement 48 Nexam Chemical Annual Report 2025
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Summary consolidated statement of changes in equity Amounts in kSEK Share capital Other capital provided Reserves Retained earnings Sum equity Equity opening balance 2025-01-01 1,556 423,760 -1,904 -240,101 183,311 Loss for the period -16,529 -16,529 Other comprehensive income Change in translation reserve for the period 1,390 1,390 Sum other comprehensive income after tax 0 0 1,390 0 1,390 Total comprehensive income for the period 1,556 423,760 -514 -256,631 168,171 Transaction with Group´s owners Warrants 0 Total transaction with the Group´s owners 0 0 0 0 0 Equity closing balance 2025-12-31 1,556 423,760 -514 -256,631 168,171 Equity opening balance 2024-01-01 1,556 423,573 -981 -231,093 193,055 Loss for the period -9,009 -9,009 Other comprehensive income Change in translation reserve for the period -923 -923 Sum other comprehensive income after tax 0 0 -923 0 -923 Total comprehensive income for the period 1,556 423,573 -1,904 -240,101 183,124 Transaction with Group´s owners Warrants 187 187 Total transaction with the Group´s owners 0 187 0 0 0 Equity closing balance 2024-12-31 1,556 423,760 -1,904 -240,101 183,311 Consolidated financial statement 49 Nexam Chemical Annual Report 2025
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Consolidated cash flow Amounts in kSEK Note 2025 2024 Cash flow from operating activities Operating income -13,037 -7,327 Adjustments for items not included in the cash flow: Depreciation and scrapping 16,480 15,386 Translation difference foreign subsidiaries 172 -73 Received interest etc 13 680 2,460 Interest paid 13 -3,385 -3,189 Tax paid 14 -789 -954 Cash flow from current operations before changes in working capital 122 6,303 Change in stock 3,991 6,858 Change in operating receivables 4,764 -3,803 Change in operating liabilities 2,410 -1,932 Cash flow from current operations 11,287 7,426 The investment activities Acquisition of intangible fixed assets 16 -5,497 -3,939 Acquisition of tangible fixed assets 20, 21, 22, 23 -4,070 -5,961 Transaction with owner when acquiring warrants – 187 Cash flow from investment activities -9,567 -9,713 The financing activities Taking out loans 32 5,739 7,308 Amortization of loans 32 -4,296 -4,227 Cash flow from financing activities 1,443 3,081 Cash flow for the year 3,163 794 Cash and cash equivalents at the beginning of the year 9,020 9,056 Exchange rate difference in cash and cash equivalents -15 -830 Cash and cash equivalents at end of period 29 12,168 9,020 Consolidated financial statement 50 Nexam Chemical Annual Report 2025
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Parent company – Income statement Amounts in kSEK Note 2025 2024 Sales Net sales 5,7 9,987 10,804 9,987 10,804 Operating expenses Operating expenses 9 -7,437 -6,537 Personnel cost 11 -6,317 -6,795 Operating profit/loss -3,767 -2,528 Financial items Results from shares in group companies 12 -50,000 – Other interest rate. and similar profit and loss items 254 1,256 Interest costs to group companies – 40 Interest costs and similar income items 13 -1,175 -1,070 Profit before tax -54,688 -2,302 Closing dispositions -15,000 -10,000 This year's results -69,688 -12,302 The parent company's report on comprehensive income Amounts in kSEK Note 2025 2024 This year's results -69,688 -12,302 Total total profit for the year -69,688 -12,302 Consolidated financial statement 51 Nexam Chemical Annual Report 2025
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The parent company's balance sheet Amounts in kSEK Note 2025-12-31 2024-12-31 ASSETS Fixed assets Financial fixed assets Shares in group companies 24 358,352 408,352 358,352 408,352 Total fixed assets 358,352 408,352 Current assets Short-term receivables Receivables from group companies 46,102 56,119 Other claims 110 – Prepaid expenses and accrued income 28 633 559 46,845 56,678 Total current assets 46,845 56,678 TOTAL ASSETS 405,198 465,030 EQUITY AND LIABILITIES Equity 30 Restricted equity Share capital 1,556 1,556 1,556 1,556 Free equity Premium fund 551,180 551,180 Balanced result -104,757 -92,456 This year's results -69,689 -12,301 376,734 446,423 Total equity 378,290 447,979 Provisions Provision for pensions and similar obligations 31 569 558 569 558 Current liabilities Debts to credit institutions 29, 33 23,386 8,601 Accounts payable 243 181 Liabilities of group companies – 5,000 Other debts 532 508 Accrued costs and prepaid income 36 2,178 2,204 26,339 7,893 TOTAL EQUITY AND LIABILITIES 405,198 456,429 The parent company's statement 52 Nexam Chemical Annual Report 2025
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The parent company's report on changes in equity Amounts in kSEK Share capital Other capital provided Reserves Retained earnings Sum equity Equity opening balance 2025-01-01 1,556 551,180 -92,456 -12,301 447,979 Total result Disposition according to AGM resolution -12,301 12,301 – This year's results -69,688 -69,688 Total total result – – -12,301 -57,388 -69,689 Transactions with shareholders – Total transactions with shareholders – – – – 0 Equity closing balance 2025-12-31 1,556 551,180 -104,757 -69,689 378,290 Equity opening balance 2024-01-01 1,556 551,180 -73,606 -18,850 460,280 Total result Disposition according to AGM resolution -18,850 18,850 – This year's results -12,301 -12,301 Total total result – – -18,850 6,549 -12,301 Transactions with shareholders – Total transactions with shareholders – – – – 0 Equity closing balance 2024-12-31 1,556 551,180 -92,456 -12,301 447,979 The parent company's statement 53 Nexam Chemical Annual Report 2025
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The parent company's statement of cash flows Amount in kSEK Note 2025 2024 Cash flow from current operations Operating results -3,767 -2,528 Adjustments for items not included in the cash flow: Change provisions 31 11 18 Received interest etc 254 1,297 Interest paid 13 -1,175 -1,070 Cash flow from current operations before changes in working capital -4,677 -2,283 Change in operating receivables 9,833 -7,970 Change in operating liabilities -4,941 3,289 Cash flow from current operations 215 -6,964 The financing activities Taking out loans 14,785 0 Group contributions -15,000 -10,000 Cash flow from financing activities -215 -10,000 Cash flow for the year 0 -16,964 Cash and cash equivalents at the beginning of the year 8,363 Exchange rate difference in cash and cash equivalents – 0 Cash and cash equivalents at the end of the year 29 0 – The parent company's statement 54 Nexam Chemical Annual Report 2025
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The parent company's statement 55 Nexam Chemical Annual Report 2025
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56 Nexam Chemical Annual Report 2025 Notes Notes NOTE 1 General information Nexam Chemical Holding AB (publ) with corporate registration number 556919-9432 is a limited liability company registered in Sweden with its registered office in Lomma. The address of the head office is Industrigatan 27, 234 35 Lomma. Nexam Chemical Holding AB (publ) and its subsidiaries (the “Group”) engage in the development, manufacture, marketing and sale of unique crosslink- ing chemicals and masterbatches to plastic manufacturers, plastic converters and plastic recyclers. The technology with crosslinkers, masterbatches and chain extenders that the Company develops and manufactures makes it possible to cost-effectively improve the properties, appearance and performance of a wide range of different types of plastics. “Nexam Chemical” or the “Company” refers to Nexam Chemical Holding AB (publ). The financial statements have been prepared on the going concern basis. NOTE 2 Significant accounting policies The consolidated financial statements have been prepared in accordance with the Annual Accounts Act, RFR 1 Supplementary accounting rules for groups and International Financial Reporting Standards (IFRS) and interpretations from IFRIC as adopted by the EU. Nexam Chemical applies the following accounting standards. IFRS 18 will be implemented in the future. The Group's initial assessment is that this will not have a material impact on the financial statements. 2.1 Basis for preparing financial statements The Group’s functional currency is Swedish kronor (SEK), which is also the reporting currency for the Company. Financial state- ments are always presented in thousands of SEK unless other- wise stated. All amounts, unless otherwise stated, are rounded to the nearest thousand. Assets and liabilities are reported at historical cost. The Company has no assets or liabilities that are measured at fair value. 2.2 Consolidated financial statements The consolidated financial statements comprise the parent company Nexam Chemical Holding AB and the companies over which the parent company directly or indirectly has a controlling influence (subsidiaries). The Group controls an entity when it is exposed to or has rights to variable returns from its holding in the entity and could affect those returns through its influence in the entity. Subsidiaries are included in the consolidated finan- cial statements from the date on which controlling influence is transferred to the Group. They are excluded from the consoli- dated financial statements from the date on which controlling influence ceases. When controlling influence over the entity ceases, but the Group retains shares in the Company, the remaining shares are initially recognised at fair value. The resulting gain or loss is recognised in the income statement. For information on which subsidiaries are included in the Group, please refer to Note 24. The acquisition method is used to account for the Group’s business combinations. The purchase price for the acquisition of a subsidiary consists of the fair value of the transferred assets, the liabilities that the Group incurs to the previous owners of the acquired Company and the shares issued by the Group. The pur- chase price also includes the fair value of any assets or liabilities that result from an agreement on a contingent purchase price. Identifiable assets acquired and liabilities assumed in a business combination are initially measured at fair value on the acquisi- tion date. For each acquisition – i.e. acquisition by acquisition – the Group determines whether non-controlling interests in the acquired company are recognized at fair value or at the holding’s proportionate share of the carrying amount of the acquired company’s identifiable net assets. Acquisition-related costs are expensed as incurred. The Group’s profit or loss and components of other compre- hensive income are attributable to the owners of the Parent Company. The accounting policies for subsidiaries are adjusted where necessary to conform to the Group's accounting policies. All intra-group transactions, balances and unrealized gains and losses attributable to intra-group transactions are eliminated in preparing the consolidated financial statements. 2.3 Allocation of revenue based on different types of revenue streams The financial information reported to the chief executive officer (CEO), as a basis for allocating resources and assessing the
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57 Nexam Chemical Annual Report 2025Notes Group's performance, is divided into two different types of reve- nue streams, but not the allocation of results, regarding revenue based on IFRS 15. The revenue streams into which revenue is divided are Performance Chemicals and Performance Master- batch, see Note 6. Nexam Chemical's reporting of the allocation of revenue to dif- ferent revenue streams is consistent with the internal reporting to the chief executive officer. The chief executive officer is the function that assesses the performance of the revenue streams and decides on the allocation of resources. Nexam Chemical's assessment is that the CEO is the chief executive officer. In the regular internal reporting to the CEO, revenue is reported divided into the revenue streams Performance Chemicals and Perfor- mance Masterbatch, while the result for the Group is reported. 2.4 Revenue recognition The Company's revenue principle is that revenue includes the fair value of what will be received for goods and services sold in the business. Revenue is reported excluding value-added tax, and with the elimination of intra-group sales. Goods revenue. Goods revenue is recognized upon delivery in accordance with the applicable sales and delivery terms in each individual case. The Company recognizes revenue when control of the goods has been transferred, which occurs when the goods have been delivered to the customer and there are no unfulfilled commitments that may affect the customer's acceptance of the goods. Revenue recognition always occurs at a specific point in time, i.e. not over time. Interest income. Interest income is recognized over the term using the effective interest method. The effective interest rate is the interest rate that makes the present value of all future receipts and payments during the fixed interest period equal to the carrying amount of the receivable. 2.5 Leasing agreements IFRS 16 New lease agreements, a right-of-use asset and a lease liabil- ity are recognized in the balance sheet. The acquisition value consists of the discounted remaining lease payments for non-cancellable lease periods. When discounting, the group uses the marginal lending rate, which currently amounts to 6.8% for leases and 5.4% for machinery and equipment. The lease agreement may change during the lease period, in which case the lease liability and the right-of-use asset are revalued. Lease payments are allocated between amortization of the lease liability and payment of interest. The Group's significant lease agreements consist of leases for land in the subsidiary Nexam St Andrews. The company applies the relief rules regarding lease agreements where the underlying asset has a low value and short-term lease agreements. These lease agreements are recognized as an expense in the period in which the use occurs. 2.6 Foreign currency Items included in the financial statements of the various entities in the Group are reported in the currency used in the primary economic environment in which each entity primarily operates (functional currency). In the consolidated financial statements, all amounts are translated into Swedish kronor (SEK), which is the functional currency of the parent company and the reporting currency of the Group. Transactions in foreign currencies are translated in each entity into the entity’s functional currency at the exchange rates pre- vailing on the transaction date. At each balance sheet date, mon- etary items in foreign currencies are translated at the exchange rate at the balance sheet date. Non-monetary items measured at fair value in a foreign currency are translated at the exchange rate at the date when the fair value was determined. Non-mon- etary items measured at historical cost in a foreign currency are not translated. Exchange rate differences are recognized in profit or loss for the period in which they arise. When preparing consolidated financial statements, the assets and liabilities of foreign subsidiaries are translated into Swedish kronor at the exchange rate on the balance sheet date. Income and expense items are translated at the average exchange rate for the period. Any translation differences that arise are reported in other comprehensive income and transferred to the Group's translation reserve. When a foreign subsidiary is divested, such translation differences are reported in the income statement as part of the capital gain or loss. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of this operation and are translated at the exchange rate on the balance sheet date. 2.7 Government grants Government grants are recognised at fair value when there is reasonable certainty that the company will comply with the conditions attached to the grants and the grants will be received. Government grants are recognised systematically in profit or loss over the same periods as the costs the grants are intended to compensate for. Grants relating to the acquisition of assets are recognised as a reduction in the carrying amount of the asset, which means that the grant is recognised in profit or loss over the useful life of the depreciable asset in the form of lower depre- ciation. Grants relating to profit or loss are recognised as other operating income in the statement of comprehensive income. 2.8 Employee benefits Employee benefits in the form of salaries, bonuses, paid vacation, paid sick leave, benefits and pensions are recognized as earned. Regarding pensions and other post-employment benefits, these
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58 Nexam Chemical Annual Report 2025 Notes are classified as defined contribution or defined benefit pension plans. The Group only has defined contribution pension plans. Defined contribution plans. For defined contribution plans, the company pays fixed contributions to a separate independent legal entity and has no obligation to pay further contributions. The Group’s profit or loss is charged to the income statement as the benefits are earned, which normally coincides with the time when premiums are paid. Termination benefits. Termination benefits are paid when any company within the Group decides to terminate an employment before the normal termination date or when an employee accepts an offer of voluntary redundancy in exchange for such compensa- tion. If the compensation does not provide the company with any future economic benefit, a liability and an expense are recognised when the company has a legal or constructive obligation to provide such compensation. The compensation is measured at the best estimate of the compensation that would be required to settle the obligation at the balance sheet date. 2.9 Income taxes The tax expense consists of the sum of current tax and deferred tax. Current tax. Current tax is calculated on the taxable profit for the period. Taxable profit differs from the reported profit in the statement of comprehensive income as it has been adjusted for non-taxable income and non-deductible expenses and for income and expenses that are taxable or deductible in other periods. The Group's current tax liability is calculated according to the tax rates that have been decided or announced as of the balance sheet date. Deferred tax. Deferred tax liability is recognized for taxable temporary differences attributable to investments in subsidiar- ies, except in cases where the Group can control the timing of the reversal of the temporary differences, and it is probable that such a reversal will not occur in the foreseeable future. Deferred tax assets relating to deductible temporary differences relating to such investments are recognised only to the extent that it is probable that the amounts can be utilised against future taxable profits, and it is probable that such utilisation will occur in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to utilise, in whole or in part, against the deferred tax asset. Deferred tax is calculated using the tax rates expected to apply to the period in which the asset is recovered or the liability is settled, based on the tax rates (and tax laws) that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets and tax liabilities are offset when they relate to income tax levied by the same authority and when the Group intends to settle the tax on a net basis. Current and deferred tax for the period. Current and deferred tax is recognized as an expense or income in profit or loss, except when the tax is attributable to transactions recognized in other comprehensive income or directly in equity. In such cases, the tax shall also be recognized in other comprehensive income or direct- ly in equity. In the case of current and deferred tax arising from the accounting for business combinations, the tax effect shall be recognized in the acquisition cost. 2.10 Intangible assets Research and development costs. Development costs are normal- ly capitalized only when the development project transitions into the process optimization of the developed molecule. Research costs aimed at obtaining new scientific or technical knowledge are recognized as expenses when incurred. Expenditures for development, where research results or other knowledge are applied to achieve new or improved products or processes, are recognized as an asset in the statement of finan- cial position only if the following conditions are met: It is technically possible t o complete the intangible asset and use or sell it, The c ompany intends to complete the intangible asset and use or sell it, Ther e are conditions to use or sell the intangible asset, The c ompany demonstrates how the intangible asset will generate probable future economic benefits, Ther e are adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, and The e xpenses attributable to the intangible asset during its development can be reliably measured. The starting point for when all of the above criteria are deemed to be met for Nexam Chemical's development projects is normal- ly when the molecule is defined, the recipe is established, and process optimization is to be initiated. Other development costs that do not meet these criteria are ex- pensed when incurred. Development costs that were previously expensed are not recognized as assets in the subsequent period. Directly attributable costs that are capitalized mainly include expenses from subcontractors, employee costs and amortization of patents linked to the development projects and are reduced by government grants related to the capitalized expenses and the development projects. After the initial recognition, capitalized development costs are recognized at cost less accumulated depreciation and any accu- mulated impairment losses. Amortization begins when the asset is ready for use. Nexam Chemical's products and technology are so unique and competitively limited by patents with a long remaining protection period, which gives Nexam Chemical a long
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59 Nexam Chemical Annual Report 2025Notes economic advantage from its products. Amortization is therefore calculated over a useful life of 15-18 years from the completion of the product with the remaining patent protection as an upper limit. Patents. Expenses for patents are recognized at cost less accumu- lated depreciation and any accumulated impairment losses. De- preciation is recognized on a straight-line basis over the estimat- ed useful life of the asset. Estimated useful lives and depreciation methods are reviewed at least at the end of each financial year, and the effect of any changes in estimates is recognized prospec- tively. Annual fees and other additional expenses are expensed on an ongoing basis. The products and technology protected by the patents are deemed to be so unique that Nexam Chemical will derive economic benefit from the patents for the duration of the patents. Planned amortization is therefore calculated over a useful life of 20 years, which is consistent with the duration of patent protection, for example, under Section 40 of the Swedish Patent Act and Article 63 of the European Patent Convention. Goodwill. Goodwill arising from business combinations is includ- ed in intangible assets. Goodwill refers to the amount by which the purchase price exceeds the fair value of the identifiable as- sets, liabilities and contingent liabilities of the acquired business. Goodwill is not amortized but is tested annually or more fre- quently if events or changes in circumstances indicate a possible decrease in value. Goodwill is therefore reported at cost less any impairment. When a unit is sold, the reported value of goodwill is included in the resulting profit/loss. For testing for impairment, goodwill acquired in a business combination is allocated to cash-generating units or groups of cash-generating units that are expected to benefit from syner- gies from the acquisition. Each unit or group of units to which goodwill has been allocated corresponds to the lowest level in the group at which the goodwill in question is monitored in internal control. Goodwill is monitored per subsidiary. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate a possible decrease in value. The carrying amount of the cash-generating unit to which the goodwill is allocated is compared with the recoverable amount, which is the higher of the value in use and the fair value less costs to sell. Any impairment is recognized immediately as an expense and is not reversed. Market positions. In connection with the acquisition of oper- ations, values in long-term customer relationships, product formulations and product portfolios have been identified and are recognized at fair value at the acquisition date. These market positions are considered to have a finite useful life, which is esti- mated to be 10 years, and are amortized on a straight-line basis over this period. Disposals and disposals. An intangible asset is removed from the statement of financial position upon disposal or disposal or when no future economic benefits are expected from the use or disposal/disposal of the asset. The gain or loss arising when an intangible asset is removed from the statement of financial posi- tion, consisting of the difference between the proceeds received on disposal and the carrying amount of the asset, is recognised in profit or loss when the asset is removed from the statement of financial position. 2.11 Tangible assets Tangible fixed assets are stated at cost less accumulated depreci- ation and any impairment losses. The cost comprises the purchase price, costs directly attribut- able to bringing the asset to its intended location and condition for use, and estimated costs of dismantling and removing the asset and restoring the site where it is located. Additional costs are only included in the asset or recognised as a separate asset when it is probable that future economic benefits attributable to the item will flow to the Group and the cost of the item can be measured reliably. All other costs of repairs and maintenance and additional costs are recognised in profit or loss in the period in which they are incurred. Depreciation of tangible fixed assets is expensed so that the value of the asset is reduced by the estimated residual value at the end of its useful life, depreciated on a straight-line basis over its estimated useful life, which is estimated to be: Industrial buildings: 25 y ears Machinery and other technical facilities: 4-10 y ears Inventories, tools and installations: 3-10 y ears Estimated useful lives, residual values and depreciation methods are reviewed at least at the end of each accounting period, the effect of any changes in assessments is reported prospectively. The carrying amount of a tangible fixed asset is removed from the statement of financial position upon disposal or disposal, or when no future economic benefits are expected from the use or disposal/disposal of the asset. The gain or loss arising on the disposal or sale of the asset, consisting of the difference between any net proceeds from the disposal and its carrying amount, is recognised in profit or loss in the period in which the asset is derecognised from the statement of financial position. 2.12 Impairment of assets At each balance sheet date, the Group analyses the carrying amounts of property, plant and equipment and intangible assets to determine whether there is any indication that these assets have been impaired. If so, the asset’s recoverable amount is calculated in order to determine the amount of any impairment. Where it is not possible to calculate the recoverable amount for an individual asset, the Group calculates the recoverable amount of the cash-generating unit to which the asset belongs. Capitalized product development costs are therefore tested for impairment at least annually. Intangible assets with indefinite useful lives and intangible assets that are not yet ready for use are tested annually for impairment or whenever there is an indi- cation of impairment.
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60 Nexam Chemical Annual Report 2025 Notes The recoverable amount is the higher of the fair value less costs to sell and its value in use. In calculating value in use, estimated future cash flows 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. If the recoverable amount of an asset (or cash-generating unit) is determined to be lower than its carrying amount, the carrying amount of the asset (or cash-generating unit) is written down to its recoverable amount. An impairment loss is immediately expensed in profit or loss. When an impairment loss is subsequently reversed, the carrying amount of the asset (cash-generating unit) is increased to the revalued recoverable amount, but the increased carrying amount may not exceed the carrying amount that would have been de- termined if no impairment loss had been recognized for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognized directly in profit or loss. 2.13 Financial instruments Financial instruments reported in the statement of financial position include, on the asset side, cash and cash equivalents, ac- counts receivable, other long-term receivables, other receivables and other long-term securities. On the liability side, accounts payable, liabilities to credit institutions and other liabilities are included. Recognition in and derecognition from the statement of finan- cial position. A financial asset or financial liability is recognized in the balance sheet when the Company becomes a party to the contractual terms of the instrument. A financial asset or a part of a financial asset is derecognized from the balance sheet when the rights in the contract are realized, expire or when the Compa- ny loses control over it. A financial liability or a part of a financial liability is derecognized from the balance sheet when the obliga- tion in the contract is fulfilled or otherwise extinguished. At each balance sheet date, the Company evaluates whether there are objective indications that a financial asset or group of financial assets needs impairment due to events that have occurred. Examples of such events are a significant deterioration in the financial position of the counterparty or failure to pay amounts due. Classification and subsequent measurement of financial assets. At initial recognition, a financial asset is classified based on the Group's business model and the cash flow that the financial asset is expected to generate. All financial assets are measured at amortized cost. Amortized cost. Amortized cost refers to the amount at which the asset or liability was initially recognized less amortization, additions or deductions for accumulated amortization according to the effective interest method of the initial difference between the amount received/paid and the amount to be paid/received on the due date and less impairment losses. The effective in- terest rate is the interest rate that, when discounting all future expected cash flows over the expected term, results in the initial- ly recognized value of the financial asset or financial liability. Financial liabilities measured at amortized cost. This category includes liabilities to credit institutions, trade payables and other financial liabilities. The liabilities are measured at amortized cost. 2.14 Inventories Inventories are valued at the lower of cost, using the first-in, first-out (FIFO) method, and net realizable value on the balance sheet date. The cost of finished goods consists of raw materials. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Ob- solescence assessment of the inventory has been considered. 2.15 Provisions Provisions are recognized when the Group has a present obliga- tion (legal or informal) as a result of an event and it is probable that payments will be required to fulfil the obligation. A further condition is that a reliable estimate of the amount to be paid can be made. 2.16 Equity Transaction costs that are directly attributable to the issue of new ordinary shares or options are recognized, net of tax, in equity as a deduction from the issue proceeds. 2.17 Cash flow statement The cash flow is prepared using the indirect method. The report- ed cash flow only includes transactions that result in receipts or payments. The company's cash and cash equivalents consist of cash and bank balances. 2.18 Accounting principles for the parent company The parent company applies the Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. Application of RFR 2 means that the parent company applies all EU-approved IFRS as far as possi- ble within the framework of the Annual Accounts Act and the Insurance Act and takes into account the connection between accounting and taxation. The differences between the parent company's and the group's accounting principles are described below: Classification and presentation. The parent company's income statement and balance sheet are prepared in accordance with the schedules of the Annual Accounts Act. The difference from IAS 1 Presentation of Financial Statements applied in the prepa- ration of the consolidated financial statements is primarily the reporting of financial income and expenses, fixed assets, equity and the existence of provisions as a separate heading. Subsidiaries. Participations in subsidiaries are reported at cost in the parent company's financial statements. Acquisition-related costs for subsidiaries, which are expensed in the consolidated financial statements, are included as part of the cost of participa- tions in subsidiaries.
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61 Nexam Chemical Annual Report 2025Notes NOTE 3 Estimates and judgments The preparation of financial statements and the application of accounting policies are often based on management’s judg- ments, estimates and assumptions that are considered reason- able at the time the judgment is made. Estimates and assump- tions are based on historical experience and a number of other factors that are considered reasonable under the circumstances. The results of these are used to assess the reported values of assets and liabilities that are not otherwise clearly apparent from other sources. The actual outcome may differ from these estimates and judgments. The estimates and assumptions are reviewed regularly. Any changes are reported in the period in which the change is made, if it only affects that period, or in the period in which the change is made and future periods if the change affects both the current and future periods. The significant risks in the financial reporting relate primarily to the reported value of fixed assets. Partly in the form of intangible assets and tangible fixed assets in the subsidiaries, and partly for the parent company's shares in the subsidiaries. The carrying amount is dependent on the future market for the Company's products developing as expected. As of December 31, 2025, the assessment is that the carrying amount of these items does not exceed fair value. Historically, the group has not yet demonstrated positive results. However, the company assesses that the restructuring of the strategy to focus more clearly on profitability and positive cash flow in the short term will ensure that the company will survive. Impairment testing of intangible assets. Since parts of the com- pany's capitalized expenses for product development have not yet begun to be amortized, the need for impairment for these is tested at least annually. Goodwill and other intangible assets are tested for impairment annually or when there is an indica- tion that these assets have decreased in value. Tangible fixed assets are tested for impairment if there is any indication that an impairment need may exist. Impairment testing is based on a review of the recoverable amount, which is estimated based on the value in use of the assets. Management makes calculations of future cash flows according to internal business plans and forecasts. This review also uses estimates of, among other things, the discount rate and future growth rate beyond established budgets and forecasts. Reported values for intangible assets amount to kSEK 98,155 (98,715), of which capitalized expens- es for product development constitute kSEK 36,799 (32,462), goodwill kSEK 45,943 (45,943) and market positions kSEK 8,433 (12,833). Changes to the assumptions made by management in the impairment test would affect the company's results and financial position. Management assesses that there is no need for impairment of the Group's intangible assets as of 31 Decem- ber 2025. NOTE 4 Financial risk management and financial instruments The Group is exposed to various types of financial risks through its operations, such as market, liquidity and credit risks. Market risks consist mainly of interest rate risk and currency risk. The Company's Board of Directors is ultimately responsible for the exposure, management and monitoring of the Group's financial risks. The Board of Directors establishes the framework that ap- plies to the exposure, management and monitoring of financial risks, and these frameworks are evaluated and revised annually. The Board of Directors could decide on temporary deviations from the established framework. Market risks Currency risks. Currency risk refers to the risk that fair value or future cash flows fluctuate as a result of changes in exchange rates. The exposure to currency risk arises mainly from payment flows in foreign currency, so-called transaction exposure, and from the translation of balance sheet items in foreign currency and the translation of foreign subsidiaries' income statements and balance sheets into the Group's reporting currency, which is Swedish kronor, so-called translation exposure. Transaction exposure. The Group operates in a global market with large parts of its sales and purchases in other currencies. The Group's sales are mainly in SEK, HUF, PLN, EUR, DKK and USD and the Group's purchases are mainly in USD, EUR and GBP . The Group's overheads arise in SEK, HUF, PLN and GBP . Changes in the value of SEK in relation to other currencies can therefore have both positive and negative effects on the Company's results and financial position. The Group has automatic daily exchange rates for all Swedish companies and for Nexam St Andrews Ltd to reduce currency risk. No other hedging is made of the trans- action exposure. A change in the exchange rate for the Group's net flows in EUR, USD, DKK, HUF, PLN and GBP against Swedish kronor by 5% would affect profit and equity by 563 (269) thou- sand SEK. Translation exposure. The Group's translation exposure of foreign subsidiaries' net assets as of 31 December 2025 amounted to 30,369 thousand SEK. Interest rate risks. Interest rate risk refers to the risk that fair value or future cash flows fluctuate as a result of changes in market interest rates. The Group has loan liabilities to credit institutions that as of 31 December 2025 totaled 30,679 thousand SEK. A change in the interest rate on the loan liability by +1% would negatively affect profit and equity by 307 (207) thousand SEK. Liquidity and financing risk Credit risk refers to the risk that the counterparty to a transaction causes the Group a loss by not fulfilling its contractual obliga- tions. The Group's exposure to credit risk is mainly attributable to other short-term receivables that amount to less significant amounts, which is why the credit risk in other short-term receiv- ables is limited.
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62 Nexam Chemical Annual Report 2025 Notes Credit risk also arises when the Company's excess liquidity is invested in various types of financial instruments. According to the framework established by the Board, excess liquidity may be invested in interest-bearing bank accounts. The credit risk when investing excess liquidity shall be reduced by only investing with counterparties with very good ratings. The Group's and the parent company's maximum exposure to credit risk is considered to correspond to the carrying amounts of all financial assets. The credit risk is considered to be limited. Categorization of financial instruments The carrying amounts of financial assets and financial liabilities distributed by valuation category are shown in the table below. There have been no reclassifications between the valuation cate- gories above during the period. Capital The Group's objective for capital management is to ensure the Group's ability to continue as a going concern in order to generate a reasonable return to shareholders and benefits to other stakeholders. The Group is financed through equity, which amounts to SEK 168,171 (183,311) thousand. The Group's cur- rent policy is not to pay any dividends. Only when the company achieves long-term profitability will proposals for dividends to shareholders be made.
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63 Nexam Chemical Annual Report 2025Notes GROUP PARENT COMPANY (kSEK) 2025-12-31 2024-12-31 2025-12-31 2024-12-31 Financial assets Available-for-sale financial assets Other long-term receivables 28 28 – – Accounts receivable 23,538 31,527 – – Receivables from group companies – – 46,102 56,119 Other receivables 9,216 6,035 743 559 Cash and cash equivalents 12,168 2,882 – -8,601 44,950 40,471 46,845 48,077 Total financial assets 44,950 40,471 46,845 48,077 Financial liabilities Financial liabilities measured at amortized cost Debts to credit institutions and similar liabilities 30,679 23,096 23,386 – Other long-term liabilities 569 558 – – Trade payables 13,353 11,263 243 181 Liabilities to group companies – – – 5,000 Other short-term liabilities 6,674 5,262 532 508 Accrued liabilities 6,497 7,645 2,178 2,204 57,771 47,824 26,339 7,893 Total financial liabilities 57,771 47,824 26,339 7,893 DUE WITHIN 2025 less than 1 month 1 to 3 months 3 to 12 months 1 to 2 years 2 to 5 years more than 5 years Liabilities to credit institutions and similar liabilities 357 1,128 14,609 3,004 2,719 8,862 Other long-term liabilities 569 Trade payables 12,037 1,316 Other short-term liabilities 2,826 3,848 Accrued liabilities 1,271 1,397 3,829 DUE WITHIN 2024 less than 1 month 1 to 3 months 3 to 12 months 1 to 2 years 2 to 5 years more than 5 years Liabilities to credit institutions and similar liabilities 375 754 3,421 4,082 4,087 10,377 Other long-term liabilities 558 Trade payables 10,038 1,225 Other short-term liabilities 2,497 2,765 Accrued liabilities 812 2,103 4,730 NOTE 4 Financial risk management and financial instruments(cont.)
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64 Nexam Chemical Annual Report 2025 Notes NOTE 5 Net sales NOTE 6 (1/2) Net sales divided by revenue stream GROUP PARENT COMPANY 2025 2024 2025 2024 Net sales broken down by type of income Product sales 191,425 199,411 9,987 – Service sales 821 166 – 10,804 192,245 199,577 9,987 10,804 – Net sales broken down by geographic market Turnover Sweden 42,469 40,290 9,987 10,804 Turnover Hungary 31,090 30,168 – – Turnover Denmark 10,871 9,783 – – Turnover Finland 10,515 17,310 – – Turnover Switzerland 24,735 30,527 – – Turnover Poland 9,281 7,175 – – Turnover Italy 124 5,253 – – Turnover Europe 7,875 7,708 – – Turnover China 948 4,112 – – Turnover India 4,291 4,705 – – Turnover USA 16,234 22,007 – – Turnover rest of the world 3,289 6,888 – – Turnover Germany 610 1,710 – – Turnover Belgium 8,488 5,229 – – Turnover Japan 7,660 6,670 – – Turnover UK – – – Turnover Canada 1,085 – – – Turnover Mexico 1,046 – – – Turnover Israel 1,025 – – – 192,245 199,577 9,987 10,804 Net sales are divided by geographic market based on where the customer is located. GROUP 2025 2024 Net sales broken down by revenue stream Performance Masterbatch 105,981 109,635 Performance Chemicals 86,265 89,942 192,245 199,577 NOTE 6 (2/2) Information on revenue streams Information about major customers Nexam Chemical has two customer groups which account for more than 19 (24) percent of the group's total turnover and amount to kSEK 36,648 (48,532). Fixed assets distributed by geographical area The group operates in four countries, Sweden, Great Britain, Poland and Hungary. The fixed assets in each country amount to: Sweden kSEK 130,511 (135,619) Scotland kSEK 8,468 (8,707) Poland kSEK 1,327 (1,463) Hungary kSEK 10,337 (10,552)
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65 Nexam Chemical Annual Report 2025Notes NOTE 7 Parent Company's purchases and sales to/ from subsidiaries PARENT COMPANY 2025 2024 Share of sales relating to group companies 100.00% 100.00% Proportion of purchases relating to group companies 0.00% 0.00% NOTE 8 Other operating income GROUP 2025 2024 Received development grants 5 10 Exchange rate gains attributable to the operation 1,032 792 Insurance compensation – 14 Miscellaneous 18 9 Sale of machinery and equipment – 8 1,055 833 NOTE 9 Information on the auditor's fee and cost reimbursement GROUP PARENT COMPANY 2025 2024 2025 2024 Deloitte Audit assignment 625 678 417 469 Thomson & Cooper Audit assignment 246 – – – Mazars Audit assignment – 206 – – ASJ Audit kft. Audit assignment 45 23 – – 915 907 417 469 The audit engagement refers to the fee for the statutory audit, i.e. the work necessary to issue the audit report, as well as so-called audit advice provided in connection with the audit engagement. No other services have been invoiced. NOTE 10 Leasing Group The group is a lessee primarily through the lease of land, but leasing is also available in machinery, leased cars and leases for warehouses. The contract regarding the lease extends until 2090. The group's assessed marginal loan interest amounts to 5.75%, which is used for discounting. For leasing cars and machines that are leased, 4.5% has been used as the discount rate The Group has leases of lower value regarding copiers, coffee and water machines amounting to SEK 76 (144) thousand annually. A maturity analysis of lease liabilities is presented in note 34 GROUP Amounts reported in the income statement 2025 2024 Depreciation on leased assets 1,792 1,601 Interest costs for lease liabilities 178 409 Total 1,970 2,010 GROUP Cash flow 2025 2024 Amortization of leasing debts 1,233 1,501 Interest expenses lease liabilities 178 409 Total 1,411 1,910 No assets are sublet. Parent company Leasing costs charge the result with reporting linearly over the leasing period. Total cost for the leasingagreements during the year amounted to 237 (245) SEK thousand. 2025-12-31 2024-12-31 Within 1 year 152 213 Between 1-5 years 12 145 Later than 5 years – 12 Total 164 370 During the year, new leasing agreements were signed to a value of 0 (398) SEK thousand.
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66 Nexam Chemical Annual Report 2025 Notes NOTE 11 Employees GROUP PARENT COMPANY Average number of employees1 2025 2024 2025 2024 Average number of employees 57 53 2 2 of which women 9 9 – – 1 The average number of employees is based on attendance hours paid by the company, related to normal working hours. AVERAGE NUMBER OF EMPLOYEES OF WHICH WOMEN Average number of employees per country 2025 2024 2025 2024 Sweden 35 32 6 6 Scotland 7 9 1 1 Hungary 11 9 2 2 Poland 3 2 – – This year's salaries and allowances Salaries, benefits, social costs and pension costs have been charged to the result with the following amounts: 2025 Board fee Basic salary Variable remuneration Pension cost Other remuneration and benefits Social security contributions Total Cecilia Jinert Johansson, chairman of the board 290 91 381 Martin Roos 168 53 221 Lennart Holm 168 53 221 Magnus Wikström 168 53 221 Total board 794 0 0 0 0 249 1,043 Ronnie Törnqvist CEO 2,084 350 583 95 907 4,048 Other five senior executives 5,696 1,412 238 2,050 9,396 Other employees 25,263 1,002 1,911 ,336, 8,822 37,334 Total CEO and other employees – 33,043 1,352 3,906 669 11,778 50,778 Amount 794 33,043 1,352 3,906 669 12,028 51,821 2024 Board fee Basic salary Variable remuneration Pension cost Other remuneration and benefits Social security contributions Total Cecilia Jinert Johansson, chairman of the board 280 88 368 Martin Roos 165 52 217 Lennart Holm 165 52 217 Magnus Wikström 165 52 217 Jonna Opitz (resigned in May 2024) 83 26 109 Total board 858 0 0 0 0 270 1,128 Ronnie Törnqvist CEO 2,184 119 682 85 916 3,986 Other five senior executives 5,546 107 1,705 214 1,746 7,593 Other employees 22,975 1,497 1,973 288 8,769 37,226 Total CEO and other employees – 30,705 1,723 4,360 587 11,431 48,805 Amount 858 30,705 1,723 4,360 587 11,700 49,933 Other remuneration and benefits include consultancy fees and other remuneration to related parties. For further information see note 41, transactions with related parties.
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67 Nexam Chemical Annual Report 2025Notes NOTE 11 Employees (cont.) The annual general meeting has decided on the following guidelines for the board and senior executives. Fees are paid to the chairman and members of the board according to the decision of the annual general meeting. The board has no severance pay. Salary and other terms of employment as well as any share-related incentive programs must be market-based. The compensation must be based on factors such as duties, competence, experience, position and performance. Remuneration to the CEO and other senior executives can consist of basic salary, variable compensation, pension, other benefits and share-related incentive programs. In addition to a fixed salary, the CEO is entitled to an annual performance-based remuneration. The compensation is conditional on the fulfillment of measurable goals, is not pensionable and for the CEO can amount to a maximum of 40 percent of fixed salary. Other senior executives must be able to be offered variable compensation. The CEO is entitled to a defined contribution pension provision corresponding to 28% of pensionable salary. Other senior executives are entitled to annual pension provisions according to standard practice in each country. For the CEO and other senior executives residing in Sweden, a mutual notice period of no more than six months applies. Severance pay, in addition to salary during notice period, occurs and can, in addition to fixed salary during notice period, amount to a maximum of six months' salary for the CEO and other senior executives. For more information, see the remuneration policy decided by the 2025 Annual General Meeting on the company's website. GROUP PARENT COMPANY Gender distribution in the board and company management 2025 2024 2025 2024 Number of board members 4 4 4 4 of which women 1 1 1 1 Number of people in the management team 6 6 6 6 of which women 0 0 0 0 NOTE 12 Other operating costs GROUP 2025 2024 Exchange rate losses attributable to the operation -2,278 -1,964 -2,278 -1,964 NOTE 13 Financial income and expenses GROUP PARENT COMPANY 2025 2024 2025 2024 Interest income 680 2,460 30 – Interest income (group companies) – – – 1,256 Interest costs -3,385 -3,189 -951 40 Interest expenses (group companies) – – – -1,070 -2,704 -729 -921 227 All interest income is attributable to financial assets valued at amortized cost All interest costs are attributable to financial assets valued at amortized cost
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68 Nexam Chemical Annual Report 2025 Notes NOTE 14 Tax GROUP PARENT COMPANY This year's tax 2025 2024 2025 2024 Current tax on the year's result -789 -954 – – Total reported tax cost -789 -954 – – Income tax in Sweden is calculated at 20.6% (20.6%) on the year's tax result. Tax in other jurisdictions is calculated using the tax rate that applies to the respective jurisdiction. A reconciliation between reported profit and the year's tax expense is presented below: GROUP PARENT COMPANY Reconciliation of the year's tax expense 2025 2024 2025 2024 Year´s result -16,529 -9,009 -69,688 -12,302 This year's tax revenue Tax calculated according to the Swedish tax rate 3,405 1,856 14,356 2,534 Tax effect of non-deductible costs -52 -55 -29 -32 Tax effect of deficits for which no deferred tax asset is reported -3,856 -2,755 -14,327 -2,502 Total -503 -954 0 0 Reported tax expense for the year -503 -954 0 0 GROUP Deferred tax claim / tax liability 2025 2024 Deferred tax claim Tax effect of assessed losses 13,187 13,847 Total deferred tax receivable 13,187 13,847 Deferred tax liability Group surplus values -4,273 -5,745 Balanced development expenditure -8,902 -8,082 Untaxed reserves -12 -19 Total deferred tax liability -13,187 -13,847 Net 0 0
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69 Nexam Chemical Annual Report 2025Notes NOTE 14 Tax (cont.) NOTE 15 Earnings per share Reconciliation of deferred net debt Tax effect of assessed losses Group-wise excess values Other temporary differences Net Net debt at the end of the year 13,187 -4,273 -8,914 0 Fiscal deficits Deferred tax receivable attributable to loss deductions is reported at a value corresponding to deferred tax on other temporary differences. The company generates losses and the company management cannot assess when the remaining tax loss deductions can be used. Deferred tax receivables attributable to loss deductions have therefore been reported to the extent that they can be set off against deferred tax liabilities on temporary differences. The loss deductions, which are available in three of the Group's companies, can be used without a time limit and can therefore reduce future profits. GROUP PARENT COMPANY 2025 2024 2025 2024 Loss deduction for which no deferred tax claim has been reported. -299,102 -219,975 -148,058 -68,863 -299,102 -219,975 -148,058 -68,863 The following results and weighted average number of shares have been used in the calculation of earnings before and after dilution: GROUP 2025 2024 Profit for the year (SEK) -69,688,560 -12,301,277 Weighted average number of shares before dilution 80,915,798 80,915,798 Earnings per share before dilution (SEK) -0.19 -0.12 Weighted average number of shares after dilution 80,915,798 80,915,798 Earnings per share after dilution (SEK) -0.19 -0.12 Group has a warrant program, see note 31 Equity. These can lead to dilution, but when the Group reports a loss for the current financial year, no dilution effect occurs. Dilution can only occur if this leads to a lower profit or higher loss per share.
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70 Nexam Chemical Annual Report 2025 Notes NOTE 16 Balanced expenses for product development NOTE 17 Patents GROUP 2025 2024 Initial acquisition values 38,180 39,302 Capitalized internal expenses for the year 6,629 2,733 The year's capitalized external expenses 261 500 Reclassification – -4,355 Closing acquisition values 45,071 38,180 Entering depreciation -5,718 -6,142 Depreciation for the year -2,554 -1,412 Reclassification – 1,835 Outgoing depreciation -8,272 -5,718 Closing reported value 36,799 32,462 Capitalized costs refer to projects for molecular development. Capitalized expenses for product development are tested for possible write-downs at least annually. In this examination, the recovery value is calculated based on the intangible asset's value in use, which is then compared with the reported value. If the reported value were to exceed the value in use, a write-down is made in the result. Impairment testing as of 31 December 2025 showed that there is no need for impairment. GROUP 2025 2024 Initial acquisition values 12,487 7,426 This year's investments 441 706 Reclassification – 4,355 Closing acquisition values 12,927 12,487 Entering depreciation -5,009 -2,736 Depreciation recognized in the income statement for the year -937 -439 Reclassification – -1,835 Outgoing depreciation -5,946 -5,009 Closing reported value 6,981 7,477
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71 Nexam Chemical Annual Report 2025Notes NOTE 18 Goodwill GROUP 2025-12-31 2024-12-31 Initial acquisition values 45,943 45,943 Closing acquisition values 45,943 45,943 Closing reported value 45,943 45,943 The goodwill represents the value of the competencies in the acquired companies and the synergies that are made possible when the two businesses are integrated and products and offerings are combined. The acquired business creates a base and organization for Nexam Chemicals' products on the European market and provides the prerequisites for the development and manufacture of multifunctional masterbatch products based on the competencies that the acquired business possesses. The acquired companies are Nexam Performance Masterbatch AB (formerly Plasticolor Sweden AB) with subsidiaries and goodwill is calculated on Nexam Performance Masterbatch AB including subsidiaries. Impairment testing as of December 31, 2025 showed that there is no impairment requirement. The discount rate used before tax amounts to 7.98%. When testing for impairment, a calculation has been made for the budget for 2026 and for cash flow forecasts for the next 4 years and with a growth rate of 2% thereafter. If the WACC (weighted average cost of capital) changes by 1%, the carrying amount of goodwill would be affected and an impairment of SEK 12,569 thousand would be required. When calculating the WACC, Nexam Chemical has chosen to use a peer group regarding equity to adjust the calculation so that it follows the industry standard. In its assumptions about future cash flows, Nexam Chemical has chosen a conservative stance (+2%) of future growth after year 5. The company assesses the company's ability to generate cash flows for years 1-5 as likely as this is in line with the budget for 2026 and the plan for the years thereafter. In 2025, the company established the concept "Re-color+", which is a concept for coloring recycled plastic. The concept has been very well received in the market and the number of color samples for recycled plastic amounted to 180 during the year, which is the highest in the company's history. The company has also hired a salesperson based in Poland and an additional operator for the Polish operation. The increased sales capacity in Poland means that Poland is expected to grow by approximately 35% in 2026 as Poland is a large market but where the company has previously been limited by few resources. During the year, the company has renovated 2 of the machines for the production of paint, which means that these are expected to last for at least 5 more years and that the output from them can increase. Overall, the company makes the following assessment of the equal parts that affect the impairment assessm ent.
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72 Nexam Chemical Annual Report 2025 Notes The important assumptions in the calculation of the impairment test are the forecasts for 2025-2029 and the methods used to estimate the values a re as follows Important variables Methods for estimating value Turnover increase The demand for the company's additives historically follows economic trends. Demand for the company's additives for coloring recycled plastic is expected to increase more than the general economic trend due to expected increased demand for applications that contain an increased proportion of recycled plastic as well as an improved market presence in Germany including neighboring countries. Raw materials The company has historically been able to pass on price increases to customers during a business cycle. The company operates in a competitive market and the margin is on par with industry peers. Personnel costs The forecast for personnel costs is based on expected inflation, some real wage increaseis expected, but the assessment is made that the company can compensate for this through efficiency improvements in production. Discount rate The discount rate is produced by a weighted average cost of capital for the industry in which the group operates and reflects current market conditions assessments of the time value of money and the risks that particularly relate to that asset for which the future cash flows have not been adjusted. NOTE 19 Market positions GROUP 2025-12-31 2024-12-31 Initial acquisition values 44,000 44,000 Closing acquisition values 44,000 44,000 Entering depreciation -31,167 -26,767 Depreciation recognized in the income statement for the year -4,400 -4,400 Outgoing depreciation -35,567 -31,167 Closing reported value 8,433 12,833 Market positions refer to acquired long-term customer relationships, product formulations and product portfolio. The depreciation period for market positions is 10 years. NOTE 18 Goodwill (cont.)
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73 Nexam Chemical Annual Report 2025Notes NOTE 20 Buildings and land GROUP 2025-12-31 2024-12-31 Initial acquisition values 46,987 46,203 Acquisition of the year 850 742 Conversion difference -832 42 Closing acquisition values 47,005 46,987 Entering depreciation -11,457 -9,496 Depreciation for the year -1,974 -1,974 Conversion difference 156 12 Outgoing depreciation -13,275 -11,457 Closing reported value 33,730 35,530 NOTE 21 Machinery and other technical facilities GROUP 2025-12-31 2024-12-31 Initial acquisition values 42,941 42,344 Acquisition of the year 1,744 1,398 This year's sale/disposal -830 -1,084 Conversion difference -680 283 Closing acquisition values 43,175 42,941 Entering depreciation -27,283 -22,733 Depreciation for the year -4,949 -5,329 This year's sale/disposal 797 970 Conversion difference 458 -191 Outgoing depreciation -30,978 -27,283 Closing reported value 12,197 15,657
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74 Nexam Chemical Annual Report 2025 Notes NOTE 22 Equipment, tools and installations GROUP 2025-12-31 2024-12-31 Initial acquisition values 11,980 9,174 Acquisition of the year 2,136 3,522 This year's sale/disposal -1,310 -716 Conversion difference -99 – Closing acquisition values 12,707 11,980 Entering depreciation -6,154 -5,205 Depreciation for the year -1,647 -1,494 This year's sale/disposal 840 545 Conversion difference 96 – Outgoing depreciation -6,864 -6,154 Closing reported value 5,843 5,826 NOTE 23 Improvement expenses on someone else's property GROUP 2025-12-31 2024-12-31 Initial acquisition values 646 519 Acquisition of the year 168 127 Closing acquisition values 814 646 Entering depreciation -63 -35 Depreciation for the year -32 -28 Outgoing depreciation -95 -63 Closing reported value 719 583
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75 Nexam Chemical Annual Report 2025Notes NOTE 24 Shares in group companies PARENT COMPANY 2025-12-31 2024-12-31 Initial acquisition values 435,076 435,076 Closing acquisition values 435,076 435,076 Entering write-downs -26,723 -26,723 Impairment losses for the year* -50,000 – Closing write-downs -76,723 -26,723 Closing reported value 358,352 408,352 *A write-down was made of the holding in Nexam Performance Masterbatch AB, as a result of lack of growth and a more cautious assessment of future prospects due to the uncertain economic situation and geopolitical tensions. Specification of the Parent Company's holdings of shares in group companies BOOK VALUE Shares in subsidiaries Organization number Location Number of shares Capital share 2025-12-31 2024-12-31 Nexam Chemical AB 556784-6711 Lomma 251,009 100.0% 281,202 281,202 Nexam Performance Masterbatch AB 556376-3035 Lomma 1,500 100.0% 77,151 127,151 358,352 408,352 Capital votes and shares Shares owned through subsidiaries Organization number Location Parent Company 2025-12-31 Nexam St. Andrews Ltd SC410830 Cupar, UK Nexam Chemical AB 100.0% Plasticolor Förvaltning AB 556409-7094 Lomma, Sweden Nexam Performance Masterbatch AB 100.0% Plasticolor Polska Sp z.o.o. PL7790034059 Poznan, Poland Nexam Performance Masterbatch AB 100.0% Plasticolor Hungary Kereskedelmi Kft. 13-09-095701 Budapest, Hungary Nexam Performance Masterbatch AB 100.0% NOTE 25 Other long-term receivables GROUP 2025-12-31 2024-12-31 Types of claims Deposits left 28 28 28 28 Initial acquisition values 28 28 Outgoing acquisition value 28 28 Closing reported value 28 28
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76 Nexam Chemical Annual Report 2025 Notes NOTE 26 Inventory GROUP 2025-12-31 2024-12-31 Raw materials and supplies 22,178 32,161 Goods under production 252 145 Finished goods 3,808 2,045 Prepayment to suppliers 4,123 – 30,360 34,352 NOTE 27 Accounts receivable As of December 31, 2025, accounts receivable totaled SEK 23,538 (31,527) thousand, of which SEK 6,514 (4,090) thousand were past due without any impairment being deemed necessary. During the year, the Group has taken a bad debt loss of SEK 918 thousand, relating to a company in England that went bankrupt and which had purchased the Group's additives to increase the use of recycled plastic. The aging analysis for the Group regarding accounts receivable is shown below. The Group applies the simplified method for calculating expected credit losses. The method means that expected losses over the entire term of the receivable are used as the starting point for the accounts receivable. To calculate expected credit losses, accounts receivable have been grouped based on credit characteristics and number of days past due. During the year, the Group has taken a bad debt loss of SEK 918 thousand, but historically, losses within the Group have been negligible. In 2025, losses amounted to 918 (42) thousand SEK. GROUP 2025-12-31 2024-12-31 Accounts receivable not past due 17,024 27,437 Overdue 1-30 days 6,330 3,828 Past due 31-60 days 36 86 Past due 61-90 days 13 43 Overdue more than 90 days 136 132 23,538 31,527
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77 Nexam Chemical Annual Report 2025Notes NOTE 28 Prepaid costs and accrued income GROUP PARENT COMPANY 2025-12-31 2024-12-31 2025-12-31 2024-12-31 Prepaid rent 145 – – – Prepaid insurances 645 624 469 466 Advance payment supplier 473 488 164 86 Pension insurance – 31 – 7 Prepaid licenses 29 49 – – 1,293 1,192 633 559 NOTE 29 Cash and cash equivalents Cash and cash equivalents in the balance sheet and cash flow analysis include: GROUP PARENT COMPANY 2025-12-31 2024-12-31 2025-12-31 2024-12-31 Available balances with banks and other credit institutions and utilization of overdraft facilities for the parent company 12,168 9,020 -23,386 -8,601 12,168 9,020 -23,386 -8,601 Parent Company is part of a group-wide cash pool NOTE 30 Equity Number of shares Quota value 1) per share (SEK) Share capital (SEK) Opening share capital 2025-01-01 80,915,798 0,02 1,556,073 Closing share capital 2025-12-31 80,915,798 0,02 1,556,073 Opening share capital 2024-01-01 80,915,798 0.02 1,556,073 Closing share capital 2024-12-31 80,915,798 0.02 1,556,073 1) The quota value per share is rounded. The share's exact ratio value is 1/52, i.e. about SEK 0.0192. Each share entitles to one vote and each person entitled to vote may, at the general meeting, vote for the full number of shares owned and represented by him/her without limitation in voting rights. All shares carry an equal right to a share in the company's assets and profits. No shares are held by the company itself. Profit allocation (SEK) Premium fund 551,179,823 Balanced result -104,757,180 This year's results -69,688,560 376,734,083 No dividend has been paid in 2025 or 2024. At the annual general meeting on May 12, 2026, the board proposes that no dividend be given. Unrestricted equity - the Group Unrestricted equity consists of share premium reserve, retained earnings from previous years and the year's profit.
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78 Nexam Chemical Annual Report 2025 Notes NOTE 30 Equity (cont.) As of December 31, the company has the following options issued Number Price per option Price per share Redemption period Warrants 2024/2027 1,170,000 0.16 6.00 2027-09-01 - 2027-10-01 Warrants 2024/2027 are valued according to Black & Scholes and are offered to management and the CEO with 200,000 as well as 50,000 to other employees. NOTE 31 Provisions PARENT COMPANY 2025-12-31 2024-12-31 Input value 558 540 Deferred payroll tax 11 17 Output value 569 558 Pension provisions in the form of endowment insurance have been netted against other long-term receivables. NOTE 32 Change in liabilities from financing activities GROUP 2024 CASH FLOW FOR THE PERIOD NO LIQUIDITY IMPACT 2025 Borrowed loans Amortization Net Reclassification Long-term loans 18,297 – – 18,297 -3,709 14,589 Short-term loans 4,799 11,879 -4,296 12,381 3,709 16,090 Total debt 23,096 11,879 -4,296 30,679 – 30,679
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79 Nexam Chemical Annual Report 2025Notes NOTE 33 Liabilities to credit institutions GROUP PARENT COMPANY 2025-12-31 2024-12-31 2025-12-31 2024-12-31 Amortization within 1 year 16,094 4,706 23,386 – Short-term debt 16,094 4,706 23,386 – Amortization within 2 to 5 years 5,723 8,013 – – Amortization after 5 years 8,862 10,377 – – Long term debt 14,585 18,390 – – Total liabilities credit institutions 30,679 23,096 23,386 0 NOTE 34 (1/4) Lease commitments Leasing agreements that are reported as fixed assets are included in the consolidated balance sheet with the following amounts: 2025-12-31 2024-12-31 Machines and other technical facilities 1,570 2,162 Equipment, tools and installations 1,235 1,297 Buildings and land 3,037 3,037 5,842 6,496 Liabilities on leasing commitments are included in the consolidated balance sheet with the following amounts: 2025-12-31 2024-12-31 Long-term lease liability 3,953 4,737 Short-term lease liability 1,889 1,759 5,842 6,496 Due dates for lease payments and their estimated present values ar e: 2025 Leasing fee incl. redemption price of which amortization of which interest Within a year 2,145 2,007 138 Later than one year, but within five years 1,193 1,080 113 Later than five years 7,978 6,496 1,482 11,316 9,583 1,733 2024 Within a year 3,295 2,930 365 Later than one year, but within five years 4,300 3,488 813 Later than five years 10,233 2,285 7,948 17,829 8,702 9,126
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80 Nexam Chemical Annual Report 2025 Notes NOTE 34 (2/4) Machinery and technical facilities GROUP 2025-12-31 2024-12-31 Initial acquisition values 5,952 5,651 Acquisition of the year 45 301 Closing acquisition values 5,997 5,952 Entering depreciation -3,790 -3,166 Depreciation for the year -637 -624 Outgoing depreciation -4,427 -3,790 Closing reported value 1,570 2,162 NOTE 34 (3/4) Equipment, tools and installations GROUP 2025-12-31 2024-12-31 Initial acquisition values 3,186 2,089 Acquisition of the year 665 1,097 Closing acquisition values 3,851 3,186 Entering depreciation -1,889 -1,369 Depreciation for the year -727 -520 Outgoing depreciation -2,616 -1,889 Closing reported value 1,235 1,297 NOTE 34 (4/4) Buildings and land GROUP 2025-12-31 2024-12-31 Initial acquisition values 4,470 3,947 Acquisition of the year 559 523 Conversion difference -106 – Closing acquisition values 4,923 4,470 Entering depreciation -1,433 -1,003 Depreciation for the year -453 -430 Outgoing depreciation -1,886 -1,433 Closing reported value 3,037 3,037
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81 Nexam Chemical Annual Report 2025Notes NOTE 35 Other long-term liabilities GROUP PARENT COMPANY 2025-12-31 2024-12-31 2025-12-31 2024-12-31 Input value 558 540 – – Deferred payroll tax 11 18 – – Output value 569 558 0 0 NOTE 36 Accrued costs and prepaid income GROUP PARENT COMPANY 2025-12-31 2024-12-31 2025-12-31 2024-12-31 Accrued holiday pay incl. social security contributions 3,328 2,816 531 355 Audit fee 666 585 300 225 Accrued board fee 44 127 44 127 Accrued interest 28 41 – – Estimated accrued payroll tax on pension costs 500 1,545 500 564 Agents 108 287 – – Reserved bonus 731 928 459 733 Consultants 365 250 ,344, 200 Received goods not invoiced – 291 – – Government grants – 479 – – Accrued fees for water, electricity, waste management 532 291 – – Miscellaneous 195 5 – – 6,497 7,645 2,178 2,204 NOTE 37 Collateral and contingent liabilities GROUP PARENT COMPANY Collateral pledged 2025-12-31 2024-12-31 2025-12-31 2024-12-31 For debts to credit institutions Real estate mortgages 12,000 12,000 – – Corporate mortgages 25,000 20,000 25,000 20,000 37,000 32,000 25,000 20,000 Contingent liabilities Payment guarantees 1,205 3,808 – 2,571 Total liabilities 1,205 3,808 – 2,571
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82 Nexam Chemical Annual Report 2025 Notes NOTE 38 Commitment for environment and restoration cost Nexam Chemical's financial reporting is based on the assumption of the Group's continued operation, which is also reflected in how any environmental liabilities are assessed. The Group follows authority decisions and takes measures proactively to prevent environmental impact, as well as reactively in the event of environmental disturbances. In the Group there are no known material environmental liabilities or events that can be feared to create environmental debt in the near term. NOTE 39 Transactions with related parties Transactions between the company and its subsidiaries, which are related to the company, have been eliminated on consolidation and information about these transactions is therefore not provided in this note. Information about transactions between the group and other related parties is presented below. Apart from the information below and remuneration to board members related to board work, according to note 11, no other transactions have taken place between the group and related parties during 2025. During the year, the parent company had income of 9,987 (10,804) thousand SEK, which relates to invoiced management fees to the subsidiaries Nexam Chemical AB and Nexam Performance Masterbatch AB. As in previous years, the parent company has not had any costs from the subsidiaries. The parent company has a net receivable of 46,102 (51,119) thousand SEK from the subsidiaries. NOTE 40 Significant events after the end of the year A capital raising was completed in February, resulting in a capital injection of SEK 47 million. The capital injection will primarily be used to invest in growth in the form of marketing, expanded sales and development resources in the area of additiv es for plastic recycling. The uncertain geopolitical environment makes it more difficult to obtain forecasts and commitments from the company's customers regarding future orders and to obtain established timetables for when joint projects will be completed. The increased uncertainty means that it is more difficult for the company to assess developments in the near future than has been the case previously. NOTE 41 Approval of financial reports This consolidated annual report was approved by the board of directors for publication on March 25, 2026.
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83 Nexam Chemical Annual Report 2025Notes
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Signatures Our audit report was submitted on March 25, 2026 Deloitte AB Cecilia Jinert Johansson Chairman Lennart Holm Board member Lomma, March 25, 2026 Ronnie Törnqvist CEO Magnus Wikström Board member Jeanette Roosberg, Authorized Public Accountant Martin Roos Board member 84 Nexam Chemical Annual Report 2025 Signatures
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Auditor’s report To the general meeting of the shareholders of Nexam Chemical Holding AB corporate identity number 556919-9432 Report on the annual accounts and consolidated accounts Opinions We have audited the annual accounts and consolidated accounts of Nexam Chemical Holding AB for the financial year 2025-01-01 - 2025-12-31. The annual accounts and consolidated accounts of the company are included on pages 36-43 and 50-88 in this document. In our opinion, the annual accounts and consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all ma- terial respects, the financial position of the parent company and the group as of 31 December 2025 and their financial per- formance and cash flow for the year then ended in accordance with the Annual Accounts Act. The statutory administra- tion report is consistent with the other parts of the annual accounts and consoli- dated accounts. We therefore recommend that the gen- eral meeting of shareholders adopts the income statement and balance sheet for the parent company and the group. Basis for Opinions We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibili- ties under those standards are further described in the Auditor’s Responsibilities section. We are independent of the par- ent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropri- ate to provide a basis for our opinions. Other Information than the annual accounts and consolidated accounts This document also contains other in- formation than the annual accounts and consolidated accounts and is found on pages 2-35, 45-49 and 92-94. The Board of Directors and the Managing Director are responsible for this other information. Our opinion on the annual accounts and consolidated accounts does not cover this other information and we do not express any form of assurance conclusion regard- ing this other information. In connection with our audit of the annu- al accounts and consolidated accounts, our responsibility is to read the infor- mation identified above and consider whether the information is materially in- consistent with the annual accounts and consolidated accounts. In this procedure we also take into account our knowledge otherwise obtained in the audit and as- sess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this information, 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. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Man- aging Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act. 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 annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error. In preparing the annual accounts and consolidated accounts, The Board of Directors and the Managing Director are responsible for the assessment of the company’s and the group’s ability to con- tinue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern ba- sis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intends to liquidate the compa- ny, to cease operations, or has no realistic alternative but to do so. Auditor’s responsibility Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstate- ment, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guar- antee that an audit conducted in accor- dance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influ- ence the economic decisions of users tak- 85 Nexam Chemical Annual Report 2025Auditor's Report
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en on the basis of these annual accounts and consolidated accounts. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Iden tify and assess the risks of material misstatement of the annual accounts and consolidated accounts, 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 opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve col- lusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding o f the company’s internal control relevant to our 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 company’s internal control. E valuate the appropriateness of accounting policies used and the rea- sonableness of accounting estimates and related disclosures made by the Board of Directors and the Managing Director. C onclude on the appropriateness of the Board of Directors’ and the Man- aging Director’s use of the going con- cern basis of accounting in preparing the annual accounts and consolidated accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertain- ty exists related to events or condi- tions that may cast significant doubt on the company’s and the group´s ability to continue as a going concern. If we conclude that a material uncer- tainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts and consolidated accounts. 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 a company and a group to cease to continue as a going concern. E valuate the overall presentation, structure and content of the an- nual accounts and consolidated accounts, including the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation. P lan and perform the group audit to obtain sufficient and appropri- ate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the consolidated accounts. We are responsible for the direction, super- vision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our opinions. We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of significant audit findings during our audit, including any significant deficiencies in internal control that we identified. Report on other legal and regulatory requirements Opinions In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Managing Director of Nexam Chemical Holding AB for the financial year 2025-01-01 - 2025- 12-31 and the proposed appropriations of the company’s profit or loss. We recommend to the general meeting of shareholders that the profit to be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year. Basis for Opinions We conducted the audit in accordance with generally accepted auditing stan- dards in Sweden. Our responsibilities un- der those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropri- ate to provide a basis for our opinions. Responsibilities of the Board of Directors and the Managing Director The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company’s and the group’s type of operations, size and risks place on the size of the parent company’s and the group’s equity, consolidation require- ments, liquidity and position in general. The Board of Directors is responsible for the company’s organization and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s and the group ´s financial situation and ensuring that the company's organiza- tion is designed so that the accounting, management of assets and the com- pany’s financial affairs otherwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfill the company’s accounting in accordance with law and handle the management of assets in a reassuring manner. 86 Nexam Chemical Annual Report 2025 Auditor's Report
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Auditor’s responsibility Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect: has under taken any action or been guilty of any omission which can give rise to liability to the company, or in an y other way has acted in contra - vention of the Companies Act, the Annual Accounts Act or the Articles of Association. Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appro- priations of the company’s profit or loss are not in accordance with the Companies Act. As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgment and maintain professional scepticism throughout the audit. The examination of the administration and the proposed appropriations of the company’s profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on our professional judgment with starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company’s situation. We examine and test deci- sions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concern- ing discharge from liability. As a basis for our opinion on the Board of Directors’ proposed appropriations of the compa- ny’s profit or loss we examined whether the proposal is in accordance with the Companies Act. The auditor’s examination of the corporate governance statement The Board of Directors is responsible for that the corporate governance statement on pages 45-49 has been prepared in ac- cordance with the Annual Accounts Act. Our examination of the corporate governance statement is conducted in accordance with FAR´s standard RevR 16 The auditor´s examination of the corporate governance statement. This means that our examination of the cor- porate governance statement is different and substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinions. A corporate governance statement has been prepared. Disclosures in accordance with chapter 6 section 6 the second para- graph points 2-6 of the Annual Accounts Act and chapter 7 section 31 the second paragraph the same law are consistent with the other parts of the annual ac- counts and consolidated accounts and are in accordance with the Annual Accounts Act. Malmö on the 25th of March 2026 Deloitte AB Signature on Swedish original Jeanette Roosberg Authorized public accountant 87 Nexam Chemical Annual Report 2025Auditor's Report
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Lennart Holm Board member since 2023. Born: 1960 Education: M.Sc Chemical Engineering at CTH, Gothenburg. Other ongoing assignments: Axolot Solutions Holding AB, Chairman of the board; Hamnkrogen Holding AB, chairman of the board; NWS Group AB, Chairman of the Board; EBC Group AB, Chairman of the Board. Holdings: 2,074,426 shares Cecilia Jinert Johansson Board member since 2014 and Chairman since 2023. Born: 1963. Education: Master of Science in Economics from Lund University. Other ongoing assignments: Chairman of the Board of Cascade Drives AB and Exeri AB and member of the Board of Minang AB, Microbas Precision AB, Freemelt Holding AB (publ) and Dahrén Group AB. Holdings: 273,443 shares Magnus Wikström Board member since 2023. Born: 1963 Education: Doctor of Science in Paper Technology at KTH in Stockholm. Other ongoing assignments: MaWi Development AB, CEO; Cellfion AB, Chairman of the Board; Rottneros AB, Board member; Cellcomb AB, Board member. Holdings: 17,482 shares Martin Roos Board member since 2021. Born: 1975 Education: Roos holds a Master of Science (Chemistry) from the Royal Institute of Technology (KTH) and a Master of Science (Economics) from the Stockholm School of Economics. Other ongoing assignments: Board member of Codiqo AB, Lignin Industries AB, Silknet JCS, Seamless Distribution Systems AB, Redsense Medical AB, Tyrill AB and The path less traveled AB and deputy board member of Amarazen AB and Roos Fastighetskonsult AB. Holdings: 400,000 shares Auditor Deloitte AB Jeanette Roosberg Authorized public accountant Board and management 88 Nexam Chemical Annual Report 2025 Board
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Ronnie Törnqvist Dane Momcilovic Marcus Nyberg Henrik Bernquist Christer Svanberg Adrian Pepper CEO (since 2023). Employed since 2023. Born: 1971. Education: Doctorate in polymer and composite technology, EPFL Lausanne Switzerland. Other ongoing assignments: Board member of Nexam Chemical AB, Plasticolor Förvaltnings Aktiebolag and Nexam Performance Masterbatch Aktiebolag. CEO of Nexam Chemical AB, Plasticolor Förvaltnings Aktiebolag and Plasticolor Sweden Aktiebolag and board member of Rontorn AB. Holdings: 285,648 shares Warrants: 200,000 warrants series 2024/2027 Business Manager (since 2022). Born: 1976. Education: PhD in Technical Analytical Chemistry, Lund University, Sweden. Other ongoing assignments: – Holdings: 243,682 shares Options: 200,000 warrants series 2024/2027 CFO (since 2019). Born: 1975. Education: Master of Business Administration, Lund University School of Economics. Other ongoing assignments: Board member of Nexam Chemical AB, Plasticolor Förvaltnings Aktiebolag, Performance Masterbatch Aktiebolag and Lommaboxen AB. Holdings: 98,934 shares Warrants: 200,000 warrants series 2024/2027 Business Manager (since 2020). Born: 1980. Education: MSc in Chemical Engineering, LTH, Lund. Other ongoing assignments: – Holdings: 15,000 shares Options: 120,000 warrants series 2024/2027 CTO (since 2022). Born: 1970. Education: Doctor of Technology (PhD) in Materials Science, Chalmers University of Technology. Other ongoing assignments: – Holdings: 30,000 shares Options: 200,000 warrants series 2024/2027 Group Regulatory and EHSQ Manager (since 2017). Employed since 2012. Born: 1973. Education: PhD in Synthetic Organic Chemistry and Bachelor of Science (Hons) in Chemistry, Salford University, UK. Other ongoing assignments: – Holdings: 14,300 shares Options: 200,000 warrants series 2024/2027. 89 Nexam Chemical Annual Report 2025Management
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Annual General Meeting Nexam Chemical's Annual General Meeting will be held on Tuesday, May 12, 2026 at 3:00 p.m. at Elite Hotel Ideon, Scheelevägen 27, in Lund. Registration opens at 2:30 p.m. Shareholders who wish to participate in the Annual General Meeting must be registered in the share register maintained by Euroclear Sweden AB no later than Tuesday, May 5, 2026, and must notify the Company no later than Tuesday, May 6, 2025. Notification must be made to Nexam Chemical Holding AB (publ), General Meeting, Box 165, 234 23 LOMMA. Notification can also be submitted by telephone at 0702-71 93 11 or by e-mail to info@nexamchemical.com. Shareholders who have had their shares registered with a nominee must, in order to have the right to participate in the general meeting, temporarily register the shares in their own name with Euroclear Sweden AB well in advance of Monday, May 5, 2026. Information about the Annual General Meeting and calendar Financial calendar 21 Apr 2026 In terim report January–March 2026 12 May 2026 Annual Gener al Meeting 2026 14 Jul 2026 In terim report January–June 2026 16 Oct 2026 In terim report January–September 2026 29 Jan 2027 Y ear-end-report 2026 90 Nexam Chemical Annual Report 2025 Annual General Meeting and calendar
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Production: Nexam Chemical Design: FunktionellForm Stockholm AB Photo Nexam Chemical: carlmagnus johansson Other: FabBrick p. 11, iStock p. 13, Storyblocks p.1, 2, 27, Unsplash (Samuel Regan Asante) p. 1, 14, (Nuno Marques) p. 1, 27, (Adi Goldstein) p. 8, (Thomas Richter ) p. 19.
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Nexam Chemical Holding AB (publ) Industrigatan 27 234 35 LOMMA Tel: 040-41 36 20 www.nexamchemical.com