Alleima

Investor Presentation • Jan 24, 2025

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Continued organic growth and stable earnings development in Q4

• Order intake for the rolling 12-month period decreased by 10% to SEK 19,419 million (21,684), with organic growth of -6%. The backlog remained solid with a good product mix.
• Revenues increased by 1% to SEK 5,094 million (5,038), with organic growth of 3%.
• Adjusted operating profit (EBIT) amounted to SEK 584 million (582), corresponding to a margin of 11.5% (11.6).
• Operating profit (EBIT) amounted to SEK 393 million (444), corresponding to a margin of 7.7% (8.8), and included metal price effects of SEK -191 million (-138).
• Adjusted earnings per share, diluted, was SEK 1.79 (2.04).
• Earnings per share, diluted, was SEK 1.18 (1.61).
• Free operating cash flow amounted to SEK 202 million (400).
• The Board of Directors proposes a dividend of SEK 2.30 per share (2.00).

Financial overview

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Alleima 61

SEK M	Q4 2024	Q4 2023	Change, %	Full year 2024	Full year 2023	Change, %
Order intake, rolling 12 months 1	19,419	21,684	-10	19,419	21,684	-10
Organic growth, rolling 12 months 1 , %	-6	-6	–	-6	-6	–
Revenues	5,094	5,038	1	19,691	20,669	-5
Organic growth, %	3	-1	–	1	8	–
Adjusted operating profit (EBIT)	584	582	0	1,944	2,141	-9
Margin, %	11.5	11.6	–	9.9	10.4	–
Operating profit (EBIT)	393	444	-12	1,498	2,046	-27
Profit for the period	296	403	-26	1,221	1,574	-22
Adjusted earnings per share, diluted, SEK	1.79	2.04	-12	6.27	6.56	-4
Earnings per share, diluted, SEK	1.18	1.61	-26	4.87	6.27	-22
Free operating cash flow	202	400	-50	1,266	1,688	-25
Net debt/Equity ratio	-0.04	-0.02	–	-0.04	-0.02	–

Notes to the reader: 1) Order intake in the quarter refers to the rolling 12-month period. Adjusted operating profit (EBIT) excludes items affecting comparability (IAC) and metal price effects, see Note 5 and the description of Alternative Performance Measures on page 25 for further details. Definitions and glossary can be found on www.alleima.com/investors. Tables and calculations in the report do not always agree exactly with the totals due to rounding. Comments refer to performance in the quarter and comparisons refer to the corresponding period last year, unless otherwise stated.

"Overall, I consider 2024 to be yet another successful year in the history of Alleima."

CEO's comment

Market conditions

During the quarter, activity levels remained high in for example the Oil and Gas as well as Nuclear segments in the Tube division, and a slight recovery was noted in North America. Market conditions for the other segments were mixed. In the Kanthal division, the Medical business continued on its positive trajectory while customers in Industrial Heating were still somewhat cautious in making investment decisions. Market conditions in the Strip division improved further during the quarter, and demand is now at a good level, driven by stronger conditions in the end markets, primarily in the Consumer segment. Even though market conditions remained somewhat uncertain in some areas, particularly Europe, we noted a gradual improvement during the year for parts of the business.

Order intake for full-year 2024 amounted to SEK 19,419 million (21,684), with organic growth of -6%. This development was primarily attributable to lower order intake in the Oil and Gas segment in the Tube division, compared with the strong backlog build-up in the year-earlier period.

Stable financial performance

Revenues grew organically by 3% during the quarter to SEK 5,094 million (5,038), driven primarily by the Nuclear and Oil and Gas segments. The adjusted EBIT margin amounted to 11.5% (11.6). Revenues for the full year increased organically by 1% to SEK 19,691 million (20,669), and the adjusted EBIT margin was 9.9% (10.4).

Free operating cash flow amounted to SEK 202 million (400) for the quarter, and to SEK 1,266 million (1,688) for the full year, impacted by high levels of activity in our ongoing growth investments. We have a strong financial position, with net cash.

Broad exposure to growing energy needs

Through our strong market position in the energy sector, we intend to continue enabling the transition while we stand strong in traditional types of energy. Despite the energy transition moving somewhat slower than expected, there are areas that are growing at a good pace. In the Nuclear segment, we have

received several large orders for steam generator tubing for both conventional and new nuclear power technology, such as small modular reactors (SMRs). With this, we have ensured capacity for several years to come in both the existing production facility and in the steam generator tubing factory which is planned to re-open in late 2026. Developments in biofuels are also moving forward. Our heat exchanger tubes are playing a major role, for example, now that the fuel company Preem is carrying out a historic initiative in sustainable aviation fuel. At the same time, we have a strong offering towards industrial heating and hydrogen, when the markets again regain momentum.

Long-term product portfolio shift yields increased stability

We intend to continue improving the mix across our entire product portfolio to achieve higher profitability and lower volatility. In practice, this means a clear capital allocation strategy towards selected priority segments, but also continuing to develop product offerings in other attractive niches. During the year, we mainly saw clear contributions to an improved product mix from the Medical and Oil and Gas segments. We have also worked on optimizing our production capacity, focusing on higher refinement which has a positive impact on profitability and stability in the margin.

A strengthened Alleima

Overall, I consider 2024 to be yet another successful year in the history of Alleima, with performance in line with our strategic and financial targets. We worked consistently with our strategy of strengthening the company further, both through decisions on new initiatives and by implementing ongoing projects. The acquisition of Endox, a German manufacturer specializing in medical components, further strengthens our offering in the Medical segment.

We enter 2025 with a solid backlog and a tailwind in several of our customer segments while facing challenges in others. During the year we will continue to work on strengthening the company through ongoing initiatives for growth and utilizing the opportunities that come from our favorable exposure to attractive segments. I would like to thank all our customers, employees, shareholders and suppliers for yet another successful year.

Göran Björkman, President and CEO

Market development and outlook

Market development

• Demand in the Oil and Gas segment was stable at high levels.
• Demand in the Chemical and Petrochemical segment declined, driven primarily by Europe. Overall, demand in Asia remained at a healthy level for the segment and recovered somewhat in North America, from low levels.
• Demand in the Industrial segment was stable overall, showing a slight recovery in North America, stable performance in Asia and somewhat weaker performance in Europe.
• Demand in the Industrial Heating segment was stable, at relatively low levels.
• Demand in the Consumer segment continued to grow, driven primarily by the white goods industry.
• Demand in the Medical segment continued to grow from high levels.
• Demand in the Mining and Construction segment was stable overall, driven by the mining industry and with somewhat weaker demand related to the construction industry.
• Demand in the Nuclear segment continued to strengthen.
• Demand in the Transportation segment was stable.
• Demand in the Hydrogen and Renewable Energy segment was mixed, but declined overall.

	OIL AND GAS	CHEMICAL AND PETROCHEMICAL	INDUSTRIAL	INDUSTRIAL HEATING	CONSUMER
Year on year underlying demand trend	→	↘	→	→	↗
% of Group revenues 2024	23%	17%	17%	11%	8%
	MEDICAL	MINING AND CONSTRUCTION	NUCLEAR	TRANSPORTATION	HYDROGEN AND RENEWABLE ENERGY
Year on year underlying demand trend	↗	→	↗	→	↘
% of Group revenues 2024	6%	6%	6%	5%	1%

Perception underlying market demand

Outlook for the first quarter 2025

Market conditions were mixed at the end of the fourth quarter. We have a positive view of the development in several of our customer segments, where the underlying megatrends are expected to continue to support the development in a continued cautious economic environment, while we are facing challenges in others.

Our backlog is solid in several of our key segments and we have good visibility in our near-term deliveries. The product mix is expected to be similar to that of the fourth quarter. Cash flow is normally lower in the first half of the year compared with the second half.

Order intake and revenues

Order intake for the rolling 12-month period decreased by 10% to SEK 19,419 million (21,684), with organic growth of -6%. The development was mainly attributable to lower order intake in the Oil and Gas segment in the Tube division, compared with the strong build-up of the backlog in the year-earlier period.

Revenues increased by 1% to SEK 5,094 million (5,038), with organic growth of 3%. The Tube division had organic growth of 7%. Organic revenue growth in the Kanthal and Strip divisions was -6% and -3%, respectively.

Book-to-bill was 99% for the rolling 12-month period. The backlog remained solid with a good product mix.

Growth bridge

SEK M	Order intake, R12	Revenues, Quarter
Q4 2023	21,684	5,038
Organic, %	-6	3
Structure, %	0	–
Currency, %	-1	0
Alloys, %	-4	-2
Total growth, %	-10	1
Q4 2024	19,419	5,094

Change compared to the corresponding quarter last year. The table is multiplicative, i.e. the different components must be multiplied to determine the total effect.

Order intake

Revenues Organic revenue growth

Earnings

Gross profit decreased by 5% to SEK 1,024 million (1,083), with a gross margin of 20.1% (21.5). The development was attributable to changed metal prices. Sales, administrative and R&D costs decreased to SEK -651 million (-654).

Adjusted EBIT totaled SEK 584 million (582), corresponding to a margin of 11.5% (11.6). The Tube division showed higher earnings, while the Kanthal and Strip divisions showed lower earnings compared to the year-earlier period, driven primarily by lower revenues. Changed exchange rates had a negative impact of SEK 12 million compared with the year-earlier period. Depreciation and amortization amounted to SEK -238 million (-240).

Reported EBIT amounted to SEK 393 million (444), with a margin of 7.7% (8.8). Metal price effects had an impact of SEK -191 million (-138).

Net financial items were SEK -22 million (80). The change was due primarily to revaluations of financial derivative contracts.

The reported tax rate was 20.1% (23.1) in the quarter. The normalized tax rate was 23.9% (24.2) for full-year 2024.

Adjusted profit for the period amounted to SEK 448 million (511) and adjusted earnings per share, diluted, amounted to SEK 1.79 (2.04). Profit for the period amounted to SEK 296 million (403), corresponding to earnings per share, diluted, of SEK 1.18 (1.61). See page 26 for further details.

SEK M	Adjusted EBIT
Q4 2023	582
Organic	16
Currency	-12
Structure	-3
Q4 2024	584

Change compared to the corresponding quarter last year.

Adjusted EBIT margin Quarter %

11.5%

Cash flow and financial position

Capital employed excluding cash increased to SEK 15,983 million (15,533). Return on capital employed excluding cash decreased to 9.5% (12.9), due to changed metal prices.

Net working capital amounted to SEK 6,821 million (6,825), and decreased compared with the preceding quarter in line with normal seasonal variations. Net working capital in relation to revenues was 33.6% (34.6).

Capex amounted to SEK -588 million (-362). The increase was mainly driven by an acceleration of ongoing growth investments.

Net debt amounted to SEK -631 million (-242), i.e. a net cash position. The net debt to equity ratio was -0.04x (-0.02). The financial net debt was SEK -1,911 million (-1,590). Available credit facilities were unutilized at the end of the fourth quarter. The net pension liability decreased year on year to SEK 820 million (843). Net debt corresponded to -0.22x (-0.08) in relation to rolling 12-month adjusted EBITDA.

Free operating cash flow amounted to SEK 202 million (400). The lower cash flow year on year was driven primarily by increased growth investments.

Free operating cash flow

SEK M	Q4 2024	Q4 2023	Full year 2024	Full year 2023
EBITDA	631	685	2,410	2,957
Non-cash items	52	54	148	54
Changes in working capital	144	65	33	-380
Capex	-588	-362	-1,190	-815
Amortization, lease liabilities	-37	-41	-135	-128
Free operating cash flow1	202	400	1,266	1,688

1) Free operating cash flow before acquisitions and disposals of companies, net financial items and paid taxes.

Net debt to Equity

-0.04x

Quarter, Ratio

NWC % of revenues

6

Revenues per customer segment, 2024

Oil & Gas Chemical & Petrochemical Industrial Mining & Construction Nuclear Transportation Hydrogen and Renewable Energy Medical Industrial heating

Tube

Tube develops and manufactures seamless tubes and other long products in advanced stainless steels and special alloys used primarily in the customer segments of Oil and Gas, Chemical and Petrochemical, Industrial, Mining and Construction, Nuclear and Transportation. The offering also includes products and solutions for the growing Hydrogen and Renewable Energy segment.

Order intake and revenues

• Order intake for the rolling 12-month period decreased by 15% to SEK 13,677 million (16,052), with organic growth of -10%. The development was mainly attributable to lower order intake in the Oil and Gas segment, due to the year-earlier backlog build-up. Overall, the backlog remained solid with a good product mix.
• Revenues in the quarter increased by 4% to SEK 3,713 million (3,557), with organic growth of 7%. The organic growth was driven primarily by the Nuclear and Oil and Gas segments.
• Book-to-bill was 98% for the rolling 12-month period.

Earnings

• Adjusted EBIT amounted to SEK 457 million (430), corresponding to a margin of 12.3% (12.1), driven primarily by a stronger product mix.
• EBIT amounted to SEK 287 million (339) and included metal price effects of SEK -170 million (-91).
• Changed exchange rates had a negative impact of SEK 3 million compared with the year-earlier period.
• Depreciation and amortization amounted to SEK -182 million (-190).

SEK M	Order intake R12	Revenues Q	Adj. EBIT Q
Q4 2023	16,052	3,557	430
Organic	-10%	7%	30
Structure	0%	–	0
Currency	-1%	0%	-3
Alloys	-4%	-2%	N/A
Total growth	-15%	4%	27
Q4 2024	13,677	3,713	457

Change compared to same period last year. For order intake and revenues, the table is multiplicative, i.e. the different components must be multiplied to determine the total effect.

SEK M	Q4 2024	Q4 2023	Change %	Full year 2024	Full year 2023	Change %
Order intake, R12 1	13,677	16,052	-15	13,677	16,052	-15
Organic growth, R12 1, %	-10	-3	–	-10	-3	–
Revenues	3,713	3,557	4	14,027	14,475	-3
Organic growth, %	7	-1	–	2	9	–
Adjusted EBIT	457	430	6	1,422	1,491	-5
Margin, %	12.3	12.1	–	10.1	10.3	–
EBIT	287	339	-15	1,044	1,460	-28
Margin, %	7.7	9.5	–	7.4	10.1	–
Total workforce 2	4,671	4,515	3	4,671	4,515	3

1) Order intake in the quarter refers to the rolling 12-month period. 2) Total workforce includes employees and third-party workers and is based on full-time equivalents.

Revenues Adjusted EBIT

7

Industrial Heating Medical Consumer Industrial Transportation

Kanthal

Kanthal is a provider of products and services in the area of industrial heating technology and resistance materials, and also offers ultra-fine wire in stainless steel for use in medical appliances. The customers are primarily in the segments Industrial Heating, Consumer, Medical and Industrial.

Order intake and revenues

• Order intake for the rolling 12-month period decreased by 6% to SEK 4,077 million (4,321), with organic growth of 0%. The Medical segment continued to show a solid order intake, while order intake in the Industrial Heating segment declined.
• Revenues in the quarter decreased by 8% to SEK 999 million (1,082), with organic growth of -6%. The development was attributable to lower revenues in all segments except for Medical.
• Book-to-bill was 97% for the rolling 12-month period.

Earnings

• Adjusted EBIT amounted to SEK 181 million (207), corresponding to a margin of 18.1% (19.1). The development was mainly attributable to lower revenues.
• EBIT amounted to SEK 167 million (161) and included metal price effects of SEK -14 million (-46).
• Changed exchange rates had a positive impact of SEK 1 million compared with the year-earlier period.
• Depreciation and amortization amounted to SEK -36 million (-32).

SEK M	Order intake R12	Revenues Q	Adj. EBIT Q
Q4 2023	4,321	1,082	207
Organic	0%	-6%	-25
Structure	–	–	-3
Currency	-1%	0%	1
Alloys	-5%	-2%	N/A
Total growth	-6%	-8%	-26
Q4 2024	4,077	999	181

Change compared to same period last year. For order intake and revenues, the table is multiplicative, i.e. the different components must be multiplied to determine the total effect.

SEK M	Q4 2024	Q4 2023	Change %	Full year 2024	Full year 2023	Change %
Order intake, R12 1	4,077	4,321	-6	4,077	4,321	-6
Organic growth, R12 1, %	0	-7	–	0	-7	–
Revenues	999	1,082	-8	4,200	4,609	-9
Organic growth, %	-6	6	–	-3	11	–
Adjusted EBIT	181	207	-12	750	844	-11
Margin, %	18.1	19.1	–	17.9	18.3	–
EBIT	167	161	4	691	778	-11
Margin, %	16.7	14.8	–	16.5	16.9	–
Total workforce 2	1,400	1,436	-3	1,400	1,436	-3

1) Order intake in the quarter refers to the rolling 12-month period. 2)Total workforce includes employees and third-party workers and is based on full-time equivalents.

Revenues Adjusted EBIT

8

Revenues per customer segment, 2024

Consumer Industrial Transportation Hydrogen & Renewable Energy

Medical

Strip

Strip develops and manufactures a wide range of precision strip steel products and also offers pre-coated strip steel for one of the most critical components in the hydrogen fuel cell stack – the bipolar plates. The customers are in the segments consumer, industrial, transportation, hydrogen and renewable energy as well as medical.

Order intake and revenues

• Order intake for the rolling 12-month period increased by 27% to SEK 1,665 million (1,310), with organic growth of 32%, driven by a positive development in all segments. During the quarter, a large order for pre-coated strip steel for hydrogen fuel cells, in the Hydrogen and Renewable Energy segment was received.
• Revenues in the quarter decreased by 4% to SEK 382 million (399), with organic growth of -3%. Revenues increased in all segments except for Hydrogen and Renewable Energy.
• Book-to-bill was 114% for the rolling 12-month period.

Earnings

• Adjusted EBIT amounted to SEK 23 million (29), with a margin of 6.1% (7.3). The development was mainly attributable to lower revenues.
• EBIT amounted to SEK 15 million (29) and included metal price effects of SEK -8 million (-1).
• Changed exchange rates had a negative impact of SEK 8 million compared with the year-earlier period.
• Depreciation and amortization amounted to SEK -14 million (-11).

SEK M	Order intake R12	Revenues Q	Adj. EBIT Q
Q4 2023	1,310	399	29
Organic	32%	-3%	2
Structure	–	–	0
Currency	-2%	0%	-8
Alloys	-3%	-2%	N/A
Total growth	27%	-4%	-6
Q4 2024	1,665	382	23

Change compared to same period last year. For order intake and revenues, the table is multiplicative, i.e. the different components must be multiplied to determine the total effect.

Q4 2024	Q4 2023	Change %	Full year 2024	Full year 2023	Change %
1,665	1,310	27	1,665	1,310	27
32	-24	–	32	-24	–
382	399	-4	1,465	1,585	-8
-3	-15	–	-4	-5	–
23	29	-20	66	109	-40
6.1	7.3	–	4.5	6.9	–
15	29	-46	56	110	-49
4.1	7.2	–	3.8	6.9	–
500	491	2	500	491	2

1) Order intake in the quarter refers to the rolling 12-month period.

2) Total workforce includes employees and third-party workers and is based on full-time equivalents.

Revenues Adjusted EBIT

-2

2

6

10

14

Sustainability

Alleima's strategy includes to be leading in the market from a sustainability perspective, contribute to increased circularity and support general health and well-being, both through our product offering and our operations. Developing a sustainable product offering, combined with several initiatives to reduce the overall environmental impact of the production process, are some of the most important success factors.

Making an impact through our offering

During the year, Alleima received an order for heat exchanger tubes to the conversion of Preem's refinery in Lysekil, Sweden, which is now transitioning from production of fossil fuels to renewable fuels. This will make Preem the largest producer of sustainable aviation fuel in northern Europe. Facilitating the transition requires a new pre-treatment facility to purify raw materials at high temperatures, which puts extremely stringent demands on the strength and corrosion-resistant properties of the components. The choice thus fell on Sanicro® 35, Alleima's austenitic stainless steel alloy.

Making an impact through our operations

• The total recordable injury frequency rate (TRIFR) for the rolling 12-month period was 7.1 (6.8). TRIFR in the quarter was 5.8 (5.2).
• Share of recycled steel, i.e., scrap metal input in steel manufacturing for the rolling 12-month period was 80.8% (80.0). The share for the quarter totaled 80.7% (80.0).
• CO₂ emissions for the rolling 12-month period amounted to 93.4 kton (96.5), corresponding to a reduction of 3%. CO₂ emissions during the quarter amounted to 25.4 kton (25.9), corresponding to a reduction of 2%.
• The share of female managers amounted to 24.0% (23.3).

Definitions and glossary can be found at www.alleima.com/investors.

Sustainability overview

	Q4 2024	Q4 2023	Change, %	R12, Q4 2024	R12, Q4 2023	Change, %
TRIFR 1	5.8	5.2	12	7.1	6.8	5
Recycled steel, %	80.7	80.0	1	80.8	80.0	1
CO2 emissions, thousand tons	25.4	25.9	-2	93.4	96.5	-3
Share of female mana gers, %	24.0	23.3	3	-	-	-

1) Total recordable injury frequency rate. Normalization factor: 1,000,000 exposure hours.

Health and safety Recycled steel CO2 emissions Share of female managers

Significant events

During the quarter

• On October 22, Alleima announced the decision to establish a production footprint for Kanthal's medical business in Asia by opening a new facility in Penang, Malaysia.
• On December 9, Alleima announced that Claes Åkerblom was leaving his position as President of the Strip division.

After the quarter

– On January 14, Alleima announced the completion of its acquisition of Endox Feinwerktechnik GmbH and Endox Polska z o.o. ("Endox"), which had been previously announced on December 10, 2024. Endox strengthens the company's medical business and will be reported in the Kanthal division.

Guidance and financial targets

Guidance

Guidance relating to certain non-operational key figures considered useful when modeling financial outcome is provided below:

Capex (Cash) (full year)	Estimated at approximately SEK 1,200 million for 2025.
Currency effects (quarterly)	Based on currency rates at the end of December 2024, it is estimated that transaction and translation currency effects will have a positive impact of about SEK 85 million on operating profit (EBIT) for the first quarter of 2025, compared to the corresponding period last year.
Metal price effects (quarterly)	In view of currency rates, inventory levels and metal prices at the end of December 2024, it is estimated that there will be a neutral impact on operating profit (EBIT) for the first quarter of 2025.
Tax rate, normalized (full year)	Estimated at 23-25% for 2025.

Financial targets

Alleima has four long-term financial targets:

Organic growth	Deliver profitable organic revenue growth in line with or above growth in targeted end-markets over a business cycle.
Earnings	Adjusted EBIT margin (excluding metal price effects and items affecting comparability) to average above 9% over a business cycle.
Capital structure	A net debt to equity ratio below 0.3x.
Dividend policy	Dividend on average 50% of net profit (adjusted for metal price effects) over a business cycle. Dividend to reflect financial position, cash flow and outlook.

Full year 2024

Market development and revenues

• Market development for full-year 2024 was mixed for the various customer segments. Demand in mainly Nuclear and Medical remained high and increased compared with the corresponding period last year. Demand in the Oil and Gas segment was stable. Demand in the Chemical and Petrochemical, Industrial Heating and Industrial segments weakened slightly.
• Revenues decreased by 5% to SEK 19,691 million (20,669), with organic growth of 1%. The Tube division noted positive organic growth, while the trend was negative for Kanthal and Strip.

Earnings

• Adjusted EBIT decreased by 9% to SEK 1,944 million (2,141) corresponding to a margin of 9.9% (10.4).
• Changed exchange rates had an impact of SEK -11 million compared with the year-earlier period.
• Depreciation and amortization amounted to SEK -913 million (-911).
• Reported EBIT amounted to SEK 1,498 million (2,046), corresponding to a margin of 7.6% (9.9). Metal price effects had an impact of SEK -446 million (-95).
• Net financial items were SEK 73 million (28). The change was due primarily to improvements in interest net.
• The reported tax rate was 22.3% (24.1). The normalized tax rate was 23.9% (24.2).
• Profit for the period amounted to SEK 1,221 million (1,574), corresponding to earnings per share, diluted, of SEK 4.87 (6.27). Adjusted earnings per share, diluted, was SEK 6.27 (6.56).

Cash flow and financial position

• Capital employed excluding cash increased to SEK 15,983 million (15,533). Return on capital employed excluding cash amounted to 9.5% (12.9).
• Capex amounted to SEK -1,190 million (-815), corresponding to 130.4% (89.5) of scheduled depreciation and 6.0% (3.9) of revenues. The increase was mainly attributable to growth investments.
• Free operating cash flow declined to SEK 1,266 million (1,688). The change was attributable primarily to higher capex.

Stockholm, January 24, 2025 Alleima AB (publ) 559224-1433

The Board of Directors

About us

Alleima is a world-leading developer, manufacturer, and supplier of high value-added products in advanced stainless steels and special alloys as well as products for industrial heating, operating with a global footprint. Based on close and long-term customer partnerships, Alleima advances processes and applications in the most demanding industries through materials that are lightweight, durable,

corrosion-resistant and able to withstand extremely high temperatures and pressures.

Through its offering and in-depth expertise in materials technology, metallurgy and industrial processes, Alleima enables its customers to become more efficient, profitable, safe and sustainable.

Tube

Tube develops and manufactures seamless tubes and other long products in advanced stainless steels and special alloys.

Kanthal

Kanthal is a provider of products and services in the area of industrial heating technology and resistance materials, and also offers ultra-fine wire in stainless steel for use in medical appliances.

Strip

Strip develops and manufactures a wide range of precision strip steel products and also offers pre-coated strip steel.

Purpose

We advance industries through materials technology Our unique and leading expertise enables more efficient, more profitable and more sustainable processes, products and applications for our customers.

Business model

The business model is based on close customer cooperation and extensive industry knowledge in combination with materials and process competence and a global footprint. Customer relationships are often characterized by a high degree of technical collaboration, including identifying the customers' needs and finding innovative ways to solve complex challenges. Approximately 80 percent of products are sold directly through Alleima's own global sales network and the remainder is often sold through distributors. Alleima has a fully integrated value chain, including in-house R&D, two steel mills with melt shops, five extrusion presses and several hot working, cold working and finishing facilities.

Strategy

The strategy is based on four pillars:

Values

• Drive profitable growth by capitalizing on global megatrends such as energy transition, energy efficiency, electrification and medical growth
• Continuous focus of R&D activities and digital innovations toward new business opportunities, defending and strengthening the current business and widening ofthe material portfolio
• Operational and commercial excellence through continuous improvement, price management, mix optimization, cost flexibility,footprint optimization and resilience
• Industry-leading sustainability that benefits the climate, increases circularity and supports general health and wellbeing, both through product offering as well as operations.

Customer segments sales exposure

We care We deliver We evolve

Revenues per customer segment is based on full-year 2024. Historically, these percentages have not changed substantially between the quarters and the full year figures of 2024 will therefore give a good approximation.

Revenues per customer segment, full year 2024

• Oil & Gas
• Chemical & Petrochemical Industrial
• Industrial heating
• Consumer
• Medical Mining & Construction
• Nuclear
• Transportation
• Hydrogen and Renewable Energy

Financial reports summary

The Group | Condensed consolidated income statement

SEK M	Note	Q4 2024	Q4 2023	Full year 2024	Full year 2023
Revenues	3	5,094	5,038	19,691	20,669
Cost of goods sold		-4,070	-3,955	-15,740	-16,090
Gross profit		1,024	1,083	3,951	4,579
Selling expenses		-314	-318	-1,250	-1,288
Administrative expenses		-253	-262	-975	-973
Research and development costs		-84	-73	-292	-255
Other operating income		52	62	140	229
Other operating expenses		-32	-47	-76	-245
Operating profit	4,5	393	444	1,498	2,046
Financial income		60	130	170	172
Financial expenses		-82	-50	-97	-144
Net financial items		-22	80	73	28
Profit after net financial items		371	524	1,571	2,074
Income tax	6	-75	-121	-350	-500
Profit for the period		296	403	1,221	1,574
Profit for the period attributable to
Owners of the parent company		296	403	1,221	1,574
Non-controlling interests		-	-	-	-
Earnings per share, SEK
Basic	9	1.18	1.61	4.88	6.28
Diluted	9	1.18	1.61	4.87	6.27

The Group | Condensed consolidated comprehensive income

SEK M	Note	Q4 2024	Q4 2023	Full year 2024	Full year 2023
Profit for the period		296	403	1,221	1,574
Other comprehensive income
Items that will not be reclassified to profit (loss)
Actuarial gains (losses) on defined benefit pension plans		114	-390	32	-327
Tax relating to items that will not be reclassified		-25	82	-8	69
Total items that will not be reclassified to profit (loss)		89	-308	24	-258
Items that may be reclassified to profit (loss)
Foreign currency translation differences		263	-370	310	-227
Hedge reserve adjustment		-199	337	-35	-965
Tax relating to items that may be reclassified		41	-70	7	199
Total items that may be reclassified to profit (loss)		106	-102	282	-994
Total other comprehensive income		194	-410	306	-1,252
Total comprehensive income		491	-7	1,528	322
Total comprehensive income attributable to
Owners of the parent company		491	-7	1,528	322
Non-controlling interests		-	-	-	-

The Group | Condensed consolidated balance sheet

SEK M	Note	Dec 31, 2024	Dec 31, 2023
Goodwill		1,693	1,621
Other intangible assets		345	292
Property, plant and equipment		7,757	7,281
Right-of-use assets		455	502
Financial assets	7	92	103
Deferred tax assets		228	164
Non-current assets		10,569	9,963
Inventories		7,407	7,360
Current receivables	7	3,960	4,077
Cash and cash equivalents		1,912	1,595
Current assets		13,279	13,033
Total assets		23,848	22,996
Equity attributable to owners of the parent company	1,9	16,614	15,732
Non-controlling interest		0	0
Total equity		16,614	15,732
Non-current interest-bearing liabilities		1,212	1,266
Non-current non-interest-bearing liabilities	7	911	971
Non-current liabilities		2,123	2,237
Current interest-bearing liabilities		134	130
Current non-interest-bearing liabilities	7	4,977	4,897
Current liabilities		5,111	5,027
Total equity and liabilities		23,848	22,996

The Group | Condensed consolidated cash flow statement

SEK M	Note	Q4 2024	Q4 2023	Full year 2024	Full year 2023
Operating activities
Operating profit		393	444	1,498	2,046
Adjustments for non-cash items:
Depreciation, amortization and impairments		238	240	913	911
Other non-cash items		52	54	148	54
Received and paid interest		-47	32	-16	22
Income tax paid		-59	-38	-451	-419
Cash flow from operating activities before changes in working capital		577	732	2,091	2,615
Changes in working capital		144	65	33	-380
Cash flow from operating activities		721	796	2,123	2,234
Investing activities
Investments in intangible and tangible assets		-589	-365	-1,195	-827
Proceeds from sale of intangible and tangible assets		1	3	5	12
Acquisition and sale of shares and participations	10	-	-4	-	-174
Other investments and financial assets, net		-3	2	-3	1
Cash flow from investing activities		-591	-363	-1,193	-988
Financing activities
Proceeds from loans		-	-	-	18
Repayments of loans		-1	-1	-4	-22
Amortization of lease liabilities		-37	-41	-135	-128
Equity swap	9	-	-	-20	-20
Dividends paid	9	-	-	-501	-351
Cash flow from financing activities		-38	-42	-660	-503
Net change in cash and cash equivalents		92	391	270	743
Cash and cash equivalents at beginning of period		1,781	1,245	1,595	892
Exchange rate differences in cash and cash equivalents		39	-41	47	-39
Cash and cash equivalents at end of the period		1,912	1,595	1,912	1,595

The Group | Condensed consolidated statements of changes in equity

SEK M	Note	Equity attributable to owners of the parent company	Non controlling interest	Total equity
Equity at January 1, 2023	1	15,901	0	15,901
Changes
Net profit		1,574	-	1,574
Other comprehensive income for the period, net of tax		-1,252	-	-1,252
Total comprehensive income for the period		322	-	322
Cash flow hedge, transferred to cost of hedged item		-153	-	-153
Tax on cash flow hedge, transferred to cost		32	-	32
Net cash flow hedge, transferred to cost		-122	-	-122
Shared-based payments	9	2	-	2
Equity swap		-20	-	-20
Dividends		-351	-	-351
Total transactions with owners		-369	-	-369
Equity at December 31, 2023	1	15,732	0	15,732
Changes
Net profit		1,221	-	1,221
Other comprehensive income for the period, net of tax		306	-	306
Total comprehensive income for the period		1,528	-	1,528
Cash flow hedge, transferred to cost of hedged item		-165	-	-165
Tax on cash flow hedge, transferred to cost		34	-	34
Net cash flow hedge, transferred to cost		-131	-	-131
Shared-based payments	9	6	-	6
Equity swap	9	-20	-	-20
Dividends	9	-501	-	-501
Total transactions with owners		-515	-	-515
Equity at December 31, 2024		16,614	0	16,614

The Parent Company | Condensed income statement

SEK M Note	Q4 2024	Q4 2023	Full year 2024	Full year 2023
Revenues	6	6	27	24
Gross profit	6	6	27	24
Administrative expenses	-19	-26	-75	-84
Other operating income	0	2	0	1
Other operating expenses	-2	0	-2	0
Operating loss	-14	-18	-50	-59
Dividend from group companies	-	485	1,076	485
Interest revenue and similar income	8	9	36	32
Interest expense and similar costs	0	0	-1	-1
Profit/loss after financial items	-6	476	1,060	458
Appropriations	-6	11	0	31
Income tax	2	1	3	0
Profit for the period	-10	487	1,063	488

The Parent Company | Condensed balance sheet

SEK M	Note	Dec 31, 2024	Dec 31, 2023
Financial assets		11,907	11,907
Deferred tax assets		5	2
Non-current assets		11,912	11,909
Current receivables		2,136	1,580
Current assets		2,136	1,580
Total assets		14,048	13,490
Restricted equity		251	251
Unrestricted equity	9	13,737	13,188
Total equity		13,987	13,439
Non-current interest-bearing liabilities		2	2
Non-current non-interest-bearing liabilities		14	13
Non-current liabilities		17	14
Current non-interest-bearing liabilities		44	36
Current liabilities		44	36
Total equity and liabilities		14,048	13,490

Notes

Note 1 | Basis of preparation

The financial statements of the Group were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. This interim report for the Group was prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and the Swedish Annual Accounts Act, and for the parent company in accordance with the Swedish Annual Accounts Act and RFR 2 Reporting for legal entities and other statements issued by the Swedish Financial Reporting Board. The accounting principles and computation methods applied in the preparation of this interim report are the same as those applied in the Annual Report 2023 as amended below. All amounts are in million SEK (SEK M) unless otherwise stated. Roundings may occur.

The interim information on pages 1–29 is an integrated part of these financial statements.

Changes in IFRS standards

IASB has published amendments of standards that are effective as of January 1, 2024 or later. The standards have not had any material impact on the financial reports.

Adjustment of hedge accounting

During Q2 2024 a correction of some hedge accounting transactions related to 2022 was made, which resulted in a restatement of the closing balance for equity as of December 31, 2022 between the hedge reserve and retained earnings of SEK -277 million. The adjustment had no effect on total equity. Retained earnings post the adjustment amounts to SEK 15,276 million as of December 31, 2023.

References

For more information concerning:

• Group summary, refer to page 1
• Significant events, refer to page 10

Note 2 | Risks and uncertainties

As an international group with a wide geographical spread, Alleima is exposed to several strategic, business and financial risks. Strategic risk at Alleima is defined as emerging risks affecting the business long-term, such as industry shifts, technological shifts, and macroeconomic developments. The business risks can be divided into operational, sustainability, compliance, legal and commercial risks. The financial risks include currency risks, interest rate risk, price risk, tax risks and more. These risk areas can all impact the business negatively both long and short-term but often also create business opportunities if managed well. Risk management at Alleima begins with an assessment in operational management teams where the material risks to their operations are first identified, followed by an evaluation of the probability of the risks occurring and their potential impact on the Group. Once the key risks have been identified and evaluated, risk mitigating activities to eliminate or reduce the risks are agreed on. For a more detailed description of Alleima's analysis of risks and risk universe, see the Annual Report 2023.

Situation by the Red Sea

The uncertainties that have arisen around the situation in the Red Sea and transports through the Suez Canal may have certain effects on freight costs, lead-times and capital tie-up as Alleima has some logistical exposure through the geographical area. As there is a continued general uncertainty regarding how the situation will evolve, it is difficult to foresee the final impact on Alleima's financial results and financial position.

Note 3 | Order intake by division and region

Order intake by division and region

SEK M	Note	R12 Q4 2024	R12 Q4 2023	Organic %
Tube
Europe		7,267	10,080	-24
North America		3,438	2,570	37
Asia		2,226	2,087	16
Other		747	1,314	-41
Total		13,677	16,052	-10
Kanthal
Europe		1,195	1,326	-5
North America		1,556	1,339	25
Asia		1,115	1,379	-14
Other		210	277	-25
Total		4,077	4,321	0
Strip
Europe		685	538	32
North America		124	134	-2
Asia		831	617	40
Other		24	22	15
Total		1,665	1,310	32
GROUP
Europe		9,147	11,944	-19
North America		5,118	4,043	32
Asia		4,172	4,083	9
Other		981	1,614	-37
Total		19,419	21,684	-6

Revenues by division and region

SEK M	Note	Q4 2024	Q4 2023	Organic %	Full year 2024	Full year 2023	Organic %
Tube
Europe		1,564	1,998	-19	7,417	7,975	-1
North America		936	587	61	3,008	2,780	13
Asia		759	636	21	2,422	2,127	21
Other		454	336	38	1,180	1,593	-23
Total		3,713	3,557	7	14,027	14,475	2
Kanthal
Europe		288	316	-8	1,223	1,459	-11
North America		354	366	-1	1,493	1,584	2
Asia		292	348	-15	1,225	1,373	-6
Other		65	52	25	258	193	36
Total		999	1,082	-6	4,200	4,609	-3
Strip
Europe		166	170	0	627	712	-9
North America		31	36	-13	114	217	-46
Asia		183	190	-4	703	636	15
Other		2	2	21	21	20	7
Total		382	399	-3	1,465	1,585	-4
GROUP
Europe		2,017	2,484	-16	9,266	10,146	-3
North America		1,321	989	35	4,616	4,581	6
Asia		1,234	1,174	6	4,350	4,137	11
Other		522	391	36	1,460	1,806	-17
Total		5,094	5,038	3	19,691	20,669	1

Note 4 | Segment information

Alleima has three reportable operating segments, Tube, Kanthal and Strip. Items not included in the operating segments, mainly related to Group staff functions typically to run the Group or items Alleima considers to be centrally decided, are presented as Common functions.

	Note	Full year 2024	Full year 2023	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
Order intake, rolling 12 months, SEK M 1
Tube		13,677	16,052	13,677	14,232	14,552	14,954	16,052	16,401	15,637	16,377
Kanthal		4,077	4,321	4,077	3,986	4,196	4,064	4,321	4,619	4,561	4,606
Strip		1,665	1,310	1,665	1,428	1,386	1,344	1,310	1,342	1,438	1,567
Total2		19,419	21,684	19,419	19,646	20,135	20,362	21,684	22,362	21,636	22,550
Revenues, SEK M
Tube		14,027	14,475	3,713	3,077	3,890	3,347	3,557	3,130	4,025	3,763
Kanthal		4,200	4,609	999	1,049	1,082	1,069	1,082	1,153	1,179	1,195
Strip		1,465	1,585	382	372	387	324	399	334	435	418
Total2		19,691	20,669	5,094	4,498	5,359	4,740	5,038	4,617	5,638	5,376
Adjusted EBIT, SEK M
Tube		1,422	1,491	457	202	454	308	430	199	457	404
Kanthal		750	844	181	174	198	197	207	214	227	196
Strip		66	109	23	-7	39	10	29	-4	44	41
Common functions		-294	-303	-77	-55	-99	-63	-84	-59	-86	-73
Total2		1,944	2,141	584	314	592	453	582	350	642	567
Adjusted EBIT margin, %
Tube		10.1	10.3	12.3	6.6	11.7	9.2	12.1	6.4	11.4	10.7
Kanthal		17.9	18.3	18.1	16.6	18.3	18.5	19.1	18.6	19.3	16.4
Strip		4.5	6.9	6.1	-1.9	10.2	3.1	7.3	-1.3	10.0	9.7
Common functions		N/M	N/M	N/M	N/M	N/M	N/M	N/M	N/M	N/M	N/M
Total2		9.9	10.4	11.5	7.0	11.1	9.6	11.6	7.6	11.4	10.5
EBIT, SEK M
Tube		1,044	1,460	287	179	544	34	339	94	189	838
Kanthal		691	778	167	168	202	153	161	182	203	233
Strip		56	110	15	-2	42	1	29	-10	44	48
Common functions		-294	-303	-77	-55	-99	-63	-84	-59	-86	-73
Total2		1,498	2,046	393	290	689	126	444	206	350	1,045

1) Order intake for the quarter refers to the rolling 12 months period.

2) Internal transactions had negligible effect on division profits.

Note 5 | Adjustment items on EBIT

SEK M	Full year 2024	Full year 2023	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
EBIT
Items affecting comparability
Tube	0	0	0	0	0	0	0	0	0	0
Kanthal	0	0	0	0	0	0	0	0	0	0
Strip	0	0	0	0	0	0	0	0	0	0
Common functions	0	0	0	0	0	0	0	0	0	0
Total	0	0	0	0	0	0	0	0	0	0
Metal price effect
Tube	-378	-30	-170	-23	90	-274	-91	-105	-268	434
Kanthal	-59	-65	-14	-5	4	-44	-46	-33	-24	38
Strip	-9	0	-8	5	2	-9	-1	-6	0	7
Total	-446	-95	-191	-24	96	-328	-138	-144	-293	479
Total adjustment items EBIT
Tube	-378	-30	-170	-23	90	-274	-91	-105	-268	434
Kanthal	-59	-65	-14	-5	4	-44	-46	-33	-24	38
Strip	-9	0	-8	5	2	-9	-1	-6	0	7
Common functions	0	0	0	0		0	0	0	0	0
Total	-446	-95	-191	-24	96	-328	-138	-144	-293	479

SEK M		Q4 2024		Q4 2023		Full year 2024	Full year 2023
Reported tax	-75	20.1%	-121	23.1%	-350	22.3%	-500	24.1%
Tax on adjustment items (note 5)	-40	-20.9%	-30	-21.6%	-94	-21.2%	-22	-23.3%
Tax excluding adjustment items	-115	20.4%	-151	22.8%	-444	22.0%	-522	24.1%
Adjustment for one time items taxes	0	0.0%	-7	1.1%	-39	2.5%	-3	0.1%
Normalized tax rate	-115	20.4%	-158	23.8%	-483	23.9%	-525	24.2%

Adjustment for one time items taxes during 2024 consist of revaluation of tax loss-carry-forwards of SEK 0 million (-3) and temporary differences of SEK -21 million (17) and other one time tax items of SEK -18 million (-17).

Note 7 | Financial assets and liabilities

Financing

During Q2 2024, Alleima has prolonged the revolving credit facility of SEK 3,000 million with one year by utilizing the last one-year prolongation option, extending the facility to 2029. The facility was not utilized as of December 31, 2024.

Financial instruments - fair values

In order to mitigate financial risks, the Group has entered into financial instruments such as currency-, commodity-, electricity- and gas derivatives. All derivatives belong to Level 2 in the fair value hierarchy, i.e. observable inputs have been used in deriving the fair values. Fair values, which equals carrying amounts, of outstanding derivatives amounted at each reporting period to the amounts below.

SEK M	Dec 31, 2024	Dec 31, 2023
Financial assets derivatives	54	327
Financial liabilities derivatives	400	493

The carrying amounts for other financial assets and liabilities are considered to represent a good approximation of the fair values due to the short durations.

Note 8 | Related party transactions

The Group companies have related party relationships with their subsidiaries. All related party transactions are based on market terms and negotiated on an arm's length basis. For outstanding share right programs refer to Note 9. Other remunerations to senior executives for Alleima are presented in the Annual Report 2023 in Note 3.

Note 9| Equity, number of shares and incentive programs

Number of shares	Dec 31, 2024	Dec 31, 2023
Total number of shares	250,877,184	250,877,184
Number of shares in equity swap (LTI)	-702,053	-410,620
Number of outstanding shares	250,175,131	250,466,564
Number of outstanding shares, weighted average	250,291,704	250,630,812
Number of shares after dilution	250,862,889	250,870,108
Number of shares after dilution, weighted average	250,866,966	250,875,769

Outstanding share right programs

Alleima's General Meeting held on May 2, 2024 approved the Board's proposal for a long-term share-based incentive program for 30 senior executives and key employees in the Group (LTI 2024). Participation requires an investment in Alleima shares. Each acquired Alleima share entitles the participant to be allotted, after a period of three years, a certain number of Alleima shares free of charge, provided that certain performance targets with respect to earnings per share and reduction of carbon dioxide (CO2) are met. As of December 31, 2024, LTI 2024 comprises 306,857 share rights. The delivery of these shares is secured through an equity swap agreement with a third party. Total costs before tax for outstanding rights in the incentive program are expensed over the three-year vesting period. These costs are expected to amount to SEK 19 million, of which social security costs amount to SEK 4 million.

Information regarding Alleima's long-term share-based incentive program 2023 (LTI 2023), such as the objective, conditions and requirements, is presented in Note 3 in the Annual Report for 2023. As of December 31, 2024, LTI 2023 comprises 380,901 share rights (403,544).

During 2024, the total pre-tax cost for the LTI programs amounted to SEK 9 (3) million.

Dividend

To the Annual General Meeting on April 28, 2025, Alleima's Board of Directors proposes for the financial year 2024 an ordinary dividend of SEK 2.30 per share (SEK 577 million), proposed to be paid on May 6, 2025.

The Annual General Meeting held on May 2, 2024, resolved for the financial year 2023 on an ordinary dividend of SEK 2.00 per share. The dividend of SEK 502 million was distributed to the shareholders on May 10, 2024, of which SEK 1 million was repaid to Alleima in form of dividend related to the equity swap for LTI 2023.

Not 10 | Business combinations

The acquisitions of business combinations executed during current and previous year are set out on the table below. For the acuisitions in 2023 please refer to details in the Alleima Annual report 2023, Note 28. Annual revenue and number of employees reflect the situation at the date of the respective transaction.

Division/Cash Generating Unit	Company	Country	Acquisition date	Annual revenue	No. of employees
Tube	Söderfors Steel Operations AB	Sweden	May 2, 2023	SEK 145 M in 2022	50

Key ratios

	Q4 2024	Q4 2023	Full year 2024	Full year 2023	Full year 2022	Full year 2021	Full year 2020
Adjusted EBITDA, SEK M	823	822	2,856	3,056	2,540	1,811	1,933
Adjusted EBITDA margin, %	16.1	16.3	14.5	14.8	13.8	13.1	13.9
Adjusted EBIT, SEK M	584	582	1,944	2,141	1,681	1,055	1,205
Adjusted EBIT margin, %	11.5	11.6	9.9	10.4	9.1	7.6	8.7
Operating profit (EBIT), SEK M	393	444	1,498	2,046	2,122	1,379	492
Operating profit (EBIT) margin, %	7.7	8.8	7.6	9.9	11.5	10.0	3.5
Normalized tax rate, % (Note 6)	20.4	23.8	23.9	24.2	24.3	24.9	31.6
Net working capital to revenues, % 1	33.6	34.6	35.1	34.3	32.8	31.2	30.4
Return on capital employed, % 2	8.9	12.2	8.9	12.2	13.2	10.4	3.8
Return on capital employed excluding cash, % 2	9.5	12.9	9.5	12.9	14.2	11.0	3.8
Net debt/Adjusted EBITDA ratio	-0.22	-0.08	-0.22	-0.08	0.01	0.73	0.90
Net debt/Equity ratio	-0.04	-0.02	-0.04	-0.02	0.00	0.11	0.17
Free operating cash flow, SEK M	202	400	1,266	1,688	505	1,046	1,483
Adjusted earnings per share, diluted, SEK	1.79	2.04	6.27	6.56	3.36 4	3.82	3.69
Earnings per share adjusted for metalprice effects, diluted, SEK	1.79	2.04	6.27	6.56	2.55 4	3.27	2.09
Average number of shares, diluted, at the end of the period (millions) (Note 9)	250.863	250.874	250.867	250.876	250.877	250.877	250.877
Number of shares at the end of the period (millions) (Note 9)	250.175	250.467	250.175	250.467	250.877	250.877	250.877
Number of employees 3	6,309	6,110	6,309	6,110	5,886	5,465	5,084
Number of consultants 3	516	596	516	596	612	413	287

1) Quarter is quarterly annualized and the annual number is based on a four quarter average.

2) Based on rolling 12 months operating profit, in percentage of a four-quarter average capital employed (including respectively excluding cash). 3) Full-time equivalent.

4) Earnings per share 2022 is adjusted due to correction of hedge accounting, refer to Note 1.

Alternative Performance Measures

This interim report contains certain alternative performance measures that are not defined by IFRS. These measures are included as they are considered to be important performance indicators of the operating performance and liquidity of Alleima. They should not be considered a substitute for Alleima's financial statements prepared in accordance with IFRS. Alleima's definitions of these measures are described below, and as other companies may calculate non IFRS measures differently, these measures are therefore not always comparable to similar measures used by other companies.

Organic order intake and revenue growth

Change in order intake and revenues after adjustments for exchange rate effects and structural changes such as divestments and acquisitions and alloy surcharges. Organic growth is used to analyze the underlying sales performance in the Group, as most of its revenues are in currencies other than in the reporting currency (i.e. SEK, Swedish Krona). Alloy surcharges are used as an instrument to pass on changes in alloy costs along the value chain and the effects from alloy surcharges may fluctuate over time.

Adjusted operating profit (EBIT)

Alleima considers Adjusted operating profit (EBIT) and the related margin to be relevant measures to present profitability of the underlying business excluding metal price effects and items affecting comparability (IAC).

Metal price effect is the difference between sales price and purchase price on metal content used in the production of products. Metal price effect on operating profit in a particular period arises from changes in alloy prices arising from the timing difference between the purchase, as included in cost of goods sold, and the sale of an alloy, as included in revenues, when alloy surcharges are applied. IAC includes capital gains and losses from divestments and larger restructuring initiatives, impairments, capital gains and losses from divestments of financial assets as well as other material items having a significant impact on the comparability.

Adjusted operating profit (EBIT) and margin: Operating profit (EBIT) excluding items affecting comparability and metal price effects. Margin is expressed as a percentage of revenues.

SEK M	Full year 2024	Full year 2023	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
Operating profit/loss	1,498	2,046	393	290	689	126	444	206	350	1,045
Reversal (Note 5):
Items affecting comparability	0	0	0	0	0	0	0	0	0	0
Metal price effect	446	95	191	24	-96	328	138	144	293	-479
Impairments	0	0		0	0	0	0	0	0	0
Adjusted operating profit (EBIT)	1,944	2,141	584	314	592	453	582	350	642	567
Revenues	19,691	20,669	5,094	4,498	5,359	4,740	5,038	4,617	5,638	5,376
Adjusted operating profit (EBIT) margin, %	9.9	10.4	11.5	7.0	11.1	9.6	11.6	7.6	11.4	10.5

Adjusted operating profit (EBIT)

Adjusted earnings per share, diluted

Alleima considers Adjusted earnings per share (EPS), diluted to be relevant to understand the underlying performance, which excludes items affecting comparability and metal price effects between periods.

Adjusted EPS, diluted: Profit/loss, adjusted for items affecting comparability and metal price effects, attributable to equity holders of the Parent Company divided by the average number of shares, diluted, outstanding during the period.

Adjusted profit for the period and adjusted earnings per share, diluted

SEK M	Full year 2024	Full year 2023	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
Profit/loss for the period	1,221	1,574	296	237	636	51	403	137	218	815
Reversal:
Adjustment items EBIT (Note 5)	446	95	191	24	-96	328	138	144	293	-479
Tax on adjustment items (Note 6)	-94	-22	-40	-5	19	-69	-30	-34	-61	103
Adjusted profit for the period	1,573	1,647	448	256	559	310	511	247	449	439
Attributable to
Owners of the parent com pany	1,573	1,647	448	256	559	310	511	247	449	439
Non-controlling interests	0	0	0	-	-	-	-	-	-	-
Average number of shares, dil uted, at the end of the period (millions)	250.867	250.876	250.863	250.870	250.870	250.866	250.874	250.877	250.877	250.877
Adjusted earnings per share, diluted, SEK	6.27	6.56	1.79	1.02	2.23	1.24	2.04	0.99	1.79	1.75

Net working capital (NWC) in relation to revenues and return on capital employed (ROCE)

Alleima considers NWC in relation to revenues for the quarter relevant as a measure of both the Group's efficiency and its short-term financial health.

Net working capital (NWC): Total of inventories, trade receivables, account payables and other current non-interest-bearing receivables and liabilities, including those classified as liabilities and assets held for sale, but excluding tax assets and liabilities and provisions. Net working capital (NWC) in relation to revenues: Quarter is quarterly annualized and year-to-date numbers are based on a four-quarter average.

Alleima considers ROCE to be useful for the readers of its financial reports as a complement in assessing the possibility of implementing strategic investments and considering the Group's ability to meet its financial commitments. In addition, it is useful to also follow ROCE excluding cash, as it is focused on the operating capital employed.

Capital employed: Total assets less non-interest-bearing liabilities (including deferred tax liabilities).

ROCE: Rolling 12 months' operating profit/loss plus financial income (excl. derivatives), as a percentage of a four-quarter average capital employed.

ROCE excluding cash: Rolling 12 months' operating profit/loss, as a percentage of a four-quarter average capital employed excluding cash and cash equivalents.

SEK M	Q4 2024	Q4 2023	Dec 31, 2024	Dec 31, 2023
Inventories	7,407	7,360	7,407	7,360
Trade receivables	2,911	2,952	2,911	2,952
Account payables	-2,249	-2,003	-2,249	-2,003
Other receivables	859	720	859	720
Other liabilities	-2,107	-2,205	-2,107	-2,205
Net working capital	6,821	6,825	6,821	6,825
Average net working capital	6,852	6,967	6,909	7,087
Revenues annualized	20,375	20,153	19,691	20,669
Net working capital to revenues, %	33.6	34.6	35.1	34.3
Tangible assets			7,757	7,281
Intangible assets			2,037	1,913
Cash and cash equivalents			1,912	1,595
Other assets			12,077	12,206
Other liabilities			-5,888	-5,868
Capital employed			17,895	17,128
Average capital employed			17,407	16,999
Operating profit rolling 12 months			1,498	2,046
Financial income, excl. derivatives, rolling 12 months			57	34
Total return rolling 12 months			1,554	2,080
Return on capital employed (ROCE), %			8.9	12.2
Average capital employed excl. cash			15,707	15,920
Return on capital employed excl. cash, %			9.5	12.9

Free operating cash flow (FOCF)

Alleima considers free operating cash flow (FOCF) to be useful for providing an indication of the funds the operations generate to be able to implement strategic investments, make amortizations and pay dividends to the shareholders.

Free operating cash flow (FOCF): Operating profit (EBIT) excluding depreciations and amortizations (EBITDA), adjusted for non-cash items plus the change in net working capital minus investments and disposals of tangible and intangible assets and plus the amortization of lease liabilities.

Net debt to Equity and Net debt to Adjusted EBITDA

Alleima considers both Net debt to Equity and Net debt to Adjusted EBITDA to be useful for the readers of its financial reports as a complement for assessing the possibility of dividends, implementing strategic investments and considering

the Group's ability to meet its financial commitments. Net debt to Equity ratio is included in Alleima's financial targets.

Net debt: Interest-bearing current and non-current liabilities, including net pension liabilities and leases, less cash and cash equivalents.

Adjusted EBITDA: Operating profit (EBIT) before depreciation and amortizations, adjusted for metal price effects and items affecting comparability.

Financial net debt

Alleima considers financial net debt to be a useful indicator of the business's ability to pay off all debt, excluding pension liabilities and lease liabilities, at a certain point in time.

Financial net debt: Net debt, excluding net pension and lease liabilities.

Net debt to Equity and Net debt to Adjusted EBITDA

SEK M	Dec 31, 2024	Dec 31, 2023
Interest-bearing non-current liabilities	1,212	1,266
Interest-bearing current liabilities	134	130
Prepayment of pensions	-65	-43
Cash & cash equivalents	-1,912	-1,595
Net debt	-631	-242
Net pension liability	-820	-843
Leasing liabilities	-460	-505
Financial net debt	-1,911	-1,590
Adjusted EBITDA accumulated current year	2,856	3,056
Adjusted EBITDA previous year	0	-
Adjusted EBITDA rolling 12 months	2,856	3,056
Total equity	16,614	15,732
Net debt/Equity ratio	-0.04	-0.02
Net debt/Adjusted EBITDA ratio (multiple)	-0.22	-0.08

Shareholder information

Disclaimer statement

Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially affected by other factors, for example the effect of economic conditions, exchange-rate and interest-rate movements, political risks, impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and major customer credit losses.

This report is published in Swedish and English. The Swedish version shall prevail in any instance where the two versions differ.

Annual General Meeting

The 2025 Annual General Meeting will be held in Sandviken, Sweden on April 28, 2025. The notice to convene the AGM will be made in the prescribed manner. The Board of Directors proposes a cash dividend of SEK 2.30. The proposal corresponds to 37% of net profit (adjusted for metal price effects). The proposed record date to receive dividends is April 30, 2025. Assuming the AGM accepts the dividend proposal, the expected date to receive dividends is May 6, 2025.

For further information, please contact: Emelie Alm, Head of Investor Relations +46 79 060 87 17 or emelie.alm@alleima.com

1

Conference call and webcast:

A conference call will be held on January 24, 2025 at 13:00 PM CET.

Presentation for download and webcast link: https://www.alleima.com/en/investors/

Dial-in detalis for the conference call: Participants in Sweden: +46 (0)8 5051 0031 Participants in the UK: +44 (0) 207 107 06 13 Participants in the US: +1 (1) 631 570 56 13

Financial calendar

Annual report published on Alleima's website Week 12, March 17-21, 2025 Q1 interim report January - March April 23, 2025 Annual General Meeting, Sandviken April 28, 2025 Proposed record date to receive dividend April 30, 2025 Proposed date to receive dividend May 6, 2025 Q2 interim report January - June July 18, 2025 Q3 interim report January - September October 22, 2025

Alleima AB (publ), corporate registration no. 559224-1433 Postal address: SE-811 81 Sandviken, Sweden

Visiting address: Storgatan 2, Sandviken, Sweden Telephone: +46 26 426 00 00

This information is information that Alleima AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11.30 AM CET on January 24, 2025.