Supply Chain Update: Impact of the Iran Conflict

1. Current Assessment of Supply & Operations

At present, we do not anticipate any disruption to the supply of products Richmond provides to customers.

Our production schedule across the UK and EU is running as planned, with healthy stock levels and no delays on core lines. For items manufactured outside Europe, we maintain UK stockholding buffers that continue to protect service continuity.

Although conflict related attacks on commercial vessels have been reported in the Strait of Hormuz, a corridor that historically carries around 20% of global petroleum liquids and LNG flows, these events have not created direct logistical disruption for our own supply routes.

2. Potential External Risks

We continue to monitor broader market volatility, including:

• • Energy and freight cost movement. Oil prices have fluctuated significantly following attacks on vessels and the temporary closure of the Strait, with some benchmarks exceeding $100/barrel earlier this month.
• • Logistics pressures. Shipping insurers have raised premiums in affected zones, and some global carriers are rerouting or extending transit times. While this is notable, our material flows do not rely on the affected chokepoint, and any globalised freight cost changes remain manageable within our normal planning processes.
• • Raw material markets. Disruptions in the region have impacted availability and pricing of energy derived inputs (plastics, chemicals, industrial gases). Analysts note that conflict driven oil and gas volatility can cascade into manufacturing costs worldwide.

To be clear, we are not yet seeing any significant pricing adjustments that directly relate to the conflict, beyond previously communicated inflationary adjustments.

3. Mitigation Measures in Place

Richmond has long embedded supply chain resilience into its operating model:

• • Global but risk balanced sourcing with UK/EU manufacturing prioritised.
• • Dual tooling and dual sourcing where commercially and technically viable.
• • Strong UK stockholding, with ongoing monitoring of customer usage.
• • Flexible routing options should conditions shift.

These practices were designed specifically for periods like this. While global markets may continue to move, Richmond remains well positioned to adapt.

4. Guidance for Customers

To provide maximum certainty:

• • Forward ordering or sharing long range forecasts is the most effective way to secure capacity.
• • For new projects, early discussions about lead times and material expectations will help us build aligned plans.
• • If you have concerns about specific lines, please speak with your Richmond account manager – we are happy to review stock strategy options.

5. Outlook

Industry reports suggest that while the situation is dynamic, many analysts view the economic impact as significant but likely time limited, with governments working to stabilise shipping and energy markets. Our stance is therefore one of practical optimism: we are vigilant, fully engaged with our suppliers, and confident in our ability to continue serving you without disruption.

Thank you, as always, for your trust and partnership.

If you have any additional questions, please reach out — we are here to support you and your customers.