TRESU Q3 2023 Financial Report

Risk factors (continued) TRESU 3.3. The Group's competitiveness is dependent on the Group's ability to continue to develop innovative products and technologies and maintain a competitive cost level The Group's products are sold in competitive markets throughout the world. The industry in which the Group operates is characterized by new technological developments that have resulted in, and will likely continue to result in, improvements in equipment functions and performance. Competition in the Group's market is based on e.g. product features, efficiency, speed, reliability, durability, technology, price, customer relationships, aftermarket services and increasingly sustainability. As a result, the future success and profitability of industry participants will be dependent, in part, upon the Group's ability to improve existing services and related equipment, address the increasingly sophisticated needs of its customers and anticipate changes in technology and industry standards and respond to technological developments in a timely manner. There can be no assurance that the Group will be successful in developing new equipment and technology, as well as keeping its existing equipment up to industry standards, in a timely and cost-effective manner, which could materially adversely affect the Group's business and financial conditions. There can also be no guarantees that the investments in IT, R&D or other parts of the business will actually yield the expected results. Technological developments and improvements are key to remaining competitive in the market. If one or more of the Group's competitors are able to develop or otherwise gain exclusive access to new technologies or are able to adapt more quickly than the Group to evolving customer preferences or market trends, this could make it difficult or increasingly costly for the Group to compete effectively in the market. If the Group's products and services are not competitive, the Group may, among others, experience a decline in sales, an increase in price discounting and/or a loss of market share, all of which could adversely impact revenue and margin of the Group's operations. Any of the foregoing could have a material adverse effect on the Group's business, financial condition and results of operations and could result in a loss for each Bondholder of part or all of each Bondholder's investment in the Bonds. 3.4. The Group may conduct business with entities which are situated or registered in countries subject to economic and trade sanction regimes and its governance and compliance processes may not prevent violations of such sanctions To a limited extent the Group operates in countries and regions that are or have been subject to economic or trade sanctions, such as Ukraine, Africa, China, Serbia and Turkey. The Group assesses such trade relation against criteria for legal trading and endeavours to comply with relevant rules and regulations. However, sanctions regimes are subject to frequent changes, which could deprive the Group of access to or limit its involvement with, or require it to stop, limit or reconfigure its business or products in affected markets. Sanctions laws are complex and their application to a given circumstance can often be subject to interpretation and therefore difficult to determine with certainty. Any violation of sanction regimes, could lead to severe fines, compliance costs, reputational harm and direct or indirect losses (e.g. costs associated with recalling products). Any new sanctions, changes to the current sanctions regimes, or violations of sanctions could have a material adverse effect on the Group's business, financial condition and results of operations and could result in a loss for each Bondholder of part or all of each Bondholder's investment in the Bonds. 48 43

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