Ferronordic

Annual / Quarterly Financial Statement • Feb 20, 2025

Q4 2024: Continued strength in US

Summary of the fourth quarter, October – December 2024 1

Group:

• 43% revenue increase driven by the addition and growth in the US operations.
• Operating result increased to SEK 2m (SEK 19m excluding effects of impairment of inventory in Germany and Kazakhstan).
• Net profit increased to SEK 9m, partly because of exchange rate effects.
• Net debt of SEK 1,978m after the acquisition of the US operations and partly driven by expansion of the rental fleet in the US.
• Total equity decreased to SEK 1,499m.

USA:

• Market increased 2% on strong base.
• Stable revenue on stronger conversion of rental fleet and steady service and parts sales.
• Total revenue of SEK 720m.
• Operating result of SEK 65m.
• Operating margin of 9.0%.

Germany:

• Market declined by 14%.
• New unit sales increased by 90%.
• Total revenue increased by 1% to SEK 559m.
• Service and parts sales declined by 4%.
• SEK 13m impairment of inventory.
• New truck inventory decreased 47% in Q4 2024.
• Operating result of SEK -41m or SEK -28m excluding effect of impairment of inventory.
• Cost reduction program shows results.

Central Asia (CA):

• New unit sales were unchanged at 15.
• Total revenue decreased by 38% to SEK 33m.
• Operating result decreased to SEK -10m.
• Inventory impairment of SEK 4m.

Revenue growth

43%

- 2

- Operating profit, SEK m

• 0.2%

Operating margin

Selected key group ratios
SEK m (or as stated)	2024 Q4	2023 Q4	%	2024 12M	2023 12M	%
Revenue	1,312	915	43%	4,720	2,863	65%
Gross profit	216	133	62%	853	377	126%
Operating profit	2	-62	104%	21	-115	118%
Result for the period	9	-89	111%	-89	-107	17%
Earnings per share, SEK2	0.65	-6.11	111%	-6.15	-7.39	17%
Cash flow from operations	-480	147		340	-27
Net debt (cash)	1,978	1,349		1,978	1,349
Gross margin, %	16.5%	14.5%	1.9pp	18.1%	13.2%	4.9pp
Operating margin, %	0.2%	-6.8%	6.9pp	0.4%	-4.0%	4.5pp
Working capital/LTM Revenue, %	23%	20%	2.6pp	23%	20%	2.6pp
Equity/total assets, %	30%	34%	-4.1pp	30%	34%	-4.1pp
Return on capital employed, %	1%	-3%	3.6pp	1%	-3%	3.6pp
Return on equity, %	-6%	-6%	0.4pp	-6%	-6%	0.4pp

¹ Comparison with same period in prior year unless stated otherwise. ² Before dilution.

All amounts are stated in millions of SEK unless stated otherwise. Rounding differences when summing up can occur with +/- SEK 1m. In cases where an underlying number is rounded off to SEK 0m, this is written as 0. Definitions and purposes of the key ratios are presented on pages 20 to 22.

US strength continues

In the fourth quarter of 2024 we saw continued strong performance in the US with good margin development and cash generation. In Germany and Kazakhstan, we continued to reduce our balance sheet position to create a robust platform for profitable growth going forward.

The US market sentiment is generally good. Customers are optimistic and expect activity in construction and natural resources to increase. Dealers however hold elevated levels of machines in inventories and rental fleets. In the fourth quarter, the market for construction equipment in North America was largely unchanged from a very strong 2023. Our machines sales overall grew by 22% and we thus continued to gain market share. Our total revenue in the US in the fourth quarter was SEK 720m with an operating profit of SEK 65m, implying a strong operating margin of 9.0%. We also saw good cash generation. Service and parts sales were stable quarter-on-quarter. Inventory and rental fleet at the end of 2024 were higher than at the end of 2023. This is in line with our strategy to take market share in the important articulated hauler and excavator segments. Over time, we see potential to grow market share further and expand the machine population for our service and parts business. We also see potential to improve profitability by capturing a larger share of service and parts sales. We have initiated numerous projects during the year to this end, including further digitalization and development of our CRM, automatic lead generation and improved branding and marketing. We see potential for further expansion in the US when the time and opportunity is right.

In Germany, the market sentiment remained subdued. Economic activity dropped in the quarter and the German economy declined for a second consecutive year in 2024. The market for trucks declined by 14% in the quarter. Despite weak demand, OEMs and dealers continued to push trucks into the market, resulting in further price pressure. Our deliveries of new trucks, in units, almost doubled during the quarter on a combination of continued efforts to clear out old stock and strong order intake of new trucks in the previous quarter. We gained significant market share and decreased stock, but at the expense of low or negative margins. Given the current market conditions, we recognized impairment of another SEK 13m on our remaining stock. The new truck inventory level at the end of the quarter was SEK 166m, compared to 406m 2023. Service and parts sales were stable. Demand for repair and maintenance is high, but we struggle to find skilled technicians for the right locations and positions. This is a key focus area for 2025, and we have launched several initiatives to address the issue, including attracting technicians from around the world to Germany. On a positive note, our electric rental business continues to develop well, and our cost reduction program continues to show results. Our cost run rate is now in line with target.

Overall, revenue in Germany increased by 1% to SEK 559m. The operating result, including impairment, was SEK -41m. This is of course disappointing. With a leaner organization and a balanced inventory position, however, we are more resilient and in a good position to leverage on the organization that we have built so far.

In Kazakhstan, our sales of new machines, measured in units, was unchanged at 15. We also gave up margins to clear out old inventory and recognized an impairment of SEK 4m. Our

We are optimistic about the opportunities in the US"

total inventory in Kazakhstan at year-end amounted to SEK 107m compared to SEK 229m at the end of 2023. In Kazakhstan we are now also in a stronger position to capture opportunities in a growing market.

Total revenue decreased to SEK 33m, or 2.5% of the Group's turnover. The operating result was SEK -10m.

For the Group, revenue increased by 43% to SEK 1,312m. The operating result amounted to SEK 2m, or SEK 19m excluding the effect of the impairment of inventory in Germany and Kazakhstan. The net result was positively impacted by the depreciation of the Swedish krona. The Group's net debt increased to SEK 1,978m, mainly as a result of the acquisition of the American operations in November 2023 but also due to the expansion of the rental fleet in the US throughout 2024 and currency effects. Given the negative net result for 2024, the Board recommends that no dividend is paid.

Outlook

We are optimistic about our expansion into the US and the business opportunities we see. Demand is supported by a dynamic economy and a significant need to upgrade the country's infrastructure. While the new administration has paused many government initiatives, federal and state infrastructure programs are expected to continue to support demand. We also expect further large construction projects involving data centers and logistics hubs in the US Midwest. The German economy remains weak. We have taken actions to cut costs and make our organization and balance sheet more resilient. We are confident that demand in the service and parts business will remain strong and are optimistic about the long-term potential in the German market and the opportunities in e-mobility and sustainable transport solutions.

Kazakhstan represents a small part of the Group's business. We continue to see opportunities in the market.

Lars Corneliusson President and CEO

Group

Revenue

In Q4 2024, the revenue of the Group increased by 43% to SEK 1,312m (915). Sales of equipment and trucks increased by 31% and service and parts sales increased by 59%. Other revenue, mainly consisting of rental sales, increased by 162%. The increase in sales was mainly related to the addition of the US operations from 1 December 2023. Excluding the US operations, total revenue decreased by 3% to SEK 592m.

In 12M 2024, the Group revenue increased by 65% to SEK 4,720m (2,863). The sales of trucks and equipment increased by 35% and service and parts sales increased by 122%, mainly as a result of the Group's acquisition of the operations in the US in November 2023.

Gross profit and operating result

In Q4 2024, the gross margin for the Group increased to 16.5% (14.5). As a result of higher revenue and higher gross margin, gross profit increased by 62% to SEK 216m (133). The gross margin was positively affected by the addition of the US business. In Q4 2024, the gross margin was negatively impacted by an impairment of inventory of SEK 13m in Germany and SEK 4m in Kazakhstan.

As a percentage of revenue, selling, general and administrative expenses decreased in Q4 2024 to 15.6% (21.5). The operating result for Q4 2024 increased by 104% to SEK 2m (-62). The operating margin during the quarter increased from -6.8% to 0.2%.

In 12M 2024, the gross margin increased to 18.1% (13.2). As a result of higher margin and higher revenue, gross profit increased by 126% to SEK 853m (377).

As a percentage of revenue, selling, general and administrative expenses decreased in 12M 2024 to 17.5% (17.8). The operating result for 12M 2024 increased by 118% to SEK 21m (-115). The operating margin increased from -4.0% to 0.4%.

Inventories are measured at the lower of cost and net realizable value. If the estimated net realizable value is lower than cost, a write down of inventories is made (IAS 2). Due to a supply-demand imbalance in the market for trucks in Germany, Ferronordic saw a growing price competition and margin pressure throughout 2024. Meanwhile, Ferronordic has seen weak demand for some of its older stock in Kazakhstan. As a result, the Company decided to recognize an impairment on trucks in Germany and machines in Kazakhstan for which there are no customer orders. The effect of the impairment was SEK 13m and SEK 4m in Germany and Kazakhstan respectively in Q4 2024. In 12M 2024 the effect of the impairment was SEK 44m in Germany and SEK 4m in Kazakhstan.

Net income

In Q4 2024, finance costs (net) amounted to SEK -34m (-15). Finance costs increased on higher interest rates and increased debt to fund the acquisition of the US operations and to expand the rental fleet in the US business. Foreign exchange gains (net) amounted to SEK 66m (-49.0) in Q4 2024, mainly as the Swedish krona depreciated against the US dollar and the euro.

The result before income tax for Q4 2024 increased to SEK 34m (-126). The result for Q4 2024 increased to SEK 9m (-89).

In 12M 2024, finance costs (net) increased to SEK -138m (-17). Foreign exchange gains (net) were SEK 77m (-21). The result before income tax for

Operating profit and operating margin (adjusted*)

Net working capital and % LTM revenue

Operating cash flow per quarter and over LTM

Cash flow from operations per quarter (SEKm)

Property, plant and equipment and capital expenditures

12M 2024 increased by 74% to SEK -40m (-153). The result for 12M 2024 increased by 17% to SEK -89m (-107).

Earnings per share

Earnings per share before dilution in Q4 2024 amounted to SEK 0,65 (-6,11). Earnings per share before dilution in 12M 2024 amounted to SEK -6.15 (-7,39).

Cash flows

In Q4 2024, cash flows from operating activities decreased to SEK -480m (147). Working capital at the end of Q4 2024 was SEK 1,068m, largely unchanged compared to the end of Q4 2023 at SEK 1,063m. As a percentage of revenue, working capital increased to 23% (20.0% at the end of 2023) in Q4 2024, mainly due to lower payables.

Cash flow from investing activities in Q4 2024 amounted to SEK 553m (-1,112). The investment in 2023 was related to the acquisition of the US business.

In 12M 2024, cash flows from operating activities increased to SEK 340m (-27). Higher cash flows were partly a result of lower inventories and receivables.

Cash flows from investing activities during 12M 2024 amounted to SEK 33m (-1,215). Investments in 2023 were mainly related to the acquisition of the US business.

Financial position

On 31 December 2024, cash and cash equivalents amounted to SEK 363m, a decrease of SEK 63m compared to the end of 2023. Cash decreased mainly as a result of repayment of loans and purchase of machines to the US rental business.

At the end of Q4 2024, interest-bearing liabilities (including lease liabilities and effects of IFRS-16) amounted to SEK 2,340m, an increase of SEK 565m compared to the end of 2023. The increase is partly a result of a movement of trade payables to interest-bearing liabilities, mainly in the US and mainly related to financing of equipment for the rental fleet. The movement from trade payables to interest-bearing liabilities has no effect on cash flows. The net debt increased from SEK 1,349m at the end of Q4 2023 to SEK 1,978m at the end of Q4 2024, mainly as a result of the expansion of the rental fleet in the US.

On 31 December 2024, property, plant and equipment (PP&E) amounted to SEK 2,317m, an increase of SEK 489m from SEK 1,828m at the end of 2023. The increase is mainly related to the expansion of the US rental fleet.

On 31 December 2024, equity amounted to SEK 1,499m, a decrease of SEK 123m compared to the end of 2023. The decrease was partly a result of a negative Group result.

Parent company

In Q4 2024, the revenue of the Parent Company decreased to SEK -7m (9), mainly due to less equipment trading with subsidiaries but also as royalty that had been accrued from subsidiaries was reversed in the quarter. Administrative expenses decreased by 100% to SEK 0m (38), partly due to the release of bonus accruals. The operating result increased to SEK -6m (-26). The result for the quarter increased to SEK 37m (-45) mainly due to higher finance income and positive foreign exchange effects.

In 12M 2024, the revenue of the Parent company decreased to SEK 3m (36). Administrative expenses decreased by 63% to SEK 43m (118). The operating

-215.0 -165.0 -115.0 -65.0 -15.0 35.0 85.0 135.0 185.0 235.0 -1,000 -500 0 500 1,000 1,500 2,000 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net debt (SEKm) Net debt / EBITDA (%)

Net debt and net debt/EBITDA

Currency index last 5 quarters (indexed 1 October 2023) 115

result increased to SEK -42m (-82) in 12M 2024. The result for 12M 2024 increased to SEK 96m (-24), partly due to positive foreign exchange effects.

Foreign exchange rates

The following foreign exchange rates have been used to translate the Q4 2024 (Q4 2023) results to the presentation currency:

• Average rates of SEK/EUR 11.43 (-0,5% vs 11.48) and SEK/USD 10.57 (-1,1% vs 10,69) have been used to translate the income statements.
• End of period rates of SEK/EUR 11.49 (3,5% vs 11.10) and SEK/USD 11,00 (9,5% vs 10.04) have been used to translate the balance sheet.

The Group's currency exposure is mainly to the US dollar (USD) and the euro (EUR), from its US and German operations respectively. The Group also has exposure to the Kazakh tenge (KZT).

Employees

At the end of Q4 2024, the number of full-time equivalent employees in the Group was 794 (827), of which 370 (399) related to Germany, 363 (355) to USA, 44 (54) to Kazakhstan and 17 (19) occupied Group functions.

Sustainability

In Q4 2024, Ferronordic continued work to build institutional capacity to measure, report and follow up on its sustainability targets internally and as required by the CSRD and the ESRS.

Risks and uncertainties

Ferronordic is exposed to a number of operational and financial risks. The Group currently operates in the US, Germany and Kazakhstan, which means that the Group has business in two developed markets and in one emerging market. In developed markets, competitive, labour and regulatory pressure can be strong. In the US, the new administration has discussed raising import tariffs and introducing other trade restrictions. This could pose risk to Ferronordic, which depends on importing equipment to the US. In an emerging market, the institutional and regulatory frameworks can be unstable. The tax and judicial systems are not always transparent or consistent. Corruption can be a problem. Access to funding can be limited, monetary policy unpredictable and the currency unstable. Counterparty and insurance risks are often greater and instruments to manage such risks are either less effective or more expensive. In its position as a service and sales company, between suppliers and customers, Ferronordic is exposed to both supply and demand disruptions and to changes in macroeconomic activity. For more on risks and uncertainties, please refer to Ferronordic's annual report.

German efficiency enhancement program

In Q4 2023, Ferronordic launched an efficiency enhancement program in Germany. The program aimed at making Ferronordic's organisation leaner and more resilient by reducing both horizontal and vertical administrative units, while increasing the efficiency of the productive organisation. Ferronordic has thus reduced the number of regions in its sales area from four to two and has reduced a number of middle management roles. The German management team has been reorganised to include Group Executives with operational functions in the German business, including Group Commercial Director, Group HR Director and Group CEO. Ferronordic has also analysed its cost structure across all functional areas to identify opportunities to reduce costs without negatively impacting – and where possible improving – the productivity of the service and sales areas. One key objective of the program is to increase Ferronordic's absorption level in Germany, which is how much of its fixed costs are covered by the gross profit from its aftermarket business. As a result of the cost reduction program,

Ferronordic expects to save approx. SEK 60m annually, starting from Q3 2024.

Events after the reporting period

Other than as mentioned above, there were no significant events after the end of the reporting period.

Segments

From Q4 2023 Ferronordic recognises three separate reportable segments: US, Germany and Central Asia (CA) (see also note 5 on page 17). In the US, equipment and truck sales include sales of new construction equipment from Volvo, Hitachi, Sandvik, Link-Belt Cranes and Bergmann and used machines. In Germany, equipment and truck sales include sales of new Volvo Trucks and Renault Trucks, Renault light commercial vehicles and used trucks. In Central Asia (CA), equipment and truck

sales include sales of new and used construction equipment, used trucks and attachments. Service and parts sales are also referred to as aftermarket sales. Other revenue consists mainly of rental revenue. To show the underlying performance of the operating segments, Ferronordic shows unallocated Group costs and assets separately. These are costs that are incurred and assets that are held for the benefit of the Group as a whole.

	Unallocated
	US		Germany		CA		Group costs1		Total2
	Q4	Q4	Q4	Q4	Q4	Q4	Q4	Q4	Q4	Q4
SEK m (or as stated)	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
External revenue	720	308	559	555	33	52			1,312	915
Equipment and truck sales	419	212	383	379	21	39			824	630
Service and parts sales	236	80	151	157	12	14			399	251
Other revenue	65	15	25	19	0	0			90	34
Gross profit	179	82	40	47	-3	5			216	133
EBITDA	130	39	-18	-35	-9	-5	-12	-19	90	-20
Operating profit	65	25	-41	-62	-10	-6			14	-43
Group costs	0	0	0	0	0	0	-12	-19	-12	-19
Operating profit after group costs	65	25	-41	-62	-10	-6	-12	-19	2	-62
Finance items (net)									32	-64
Profit(loss) before tax									34	-126
Result for the period									9	-89
Gross margin, %	24.8%	26.6%	7.2%	8.4%	-10.5%	8.9%			16.5%	14.5%
Operating margin, %	9.0%	8.0%	-7.3%	-11.1%	-30.5%	-10.7%			0.2%	-6.8%

							Unallocated Group
	US		Germany		CA		costs1		Total2
	12M	12M	12M	12M	12M	12M	12M	12M	12M	12M
SEK m (or as stated)	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
External revenue	2,813	308	1,702	2,271	205	284			4,720	2,863
Equipment and truck sales	1,550	212	1,001	1,578	159	224			2,710	2,015
Service and parts sales	991	80	625	608	46	60			1,662	748
Other revenue	272	15	76	85	0	0			347	101
Gross profit	686	82	149	253	19	43			853	377
EBITDA	500	39	-31	18	-9	13	-77	-76	383	-7
Operating profit	230	25	-120	-72	-12	9			97	-38
Group costs	0	0	0	0	0	0	-77	-76	-77	-76
Operating profit after group costs	230	25	-120	-72	-12	9	-77	-76	21	-115
Finance items (net)									-61	-39
Profit(loss) before tax									-40	-153
Result for the period									-89	-107
Gross margin, %	24.4%	26.6%	8.7%	11.1%	9.0%	15.0%			18.1%	13.2%
Operating margin, %	8.2%	8.0%	-7.0%	-3.2%	-5.9%	3.1%			0.4%	-4.0%

¹ Q4 2024 had extraordinary items, including the release of accruals, that lowered the Group costs in the periods. The amounts of such releases were approximately SEK 6,3m in Q4 2024.

²As a result of weaker demand for some of Ferronordic's products, the Company decided to revalue parts of its inventory in Germany and Kazakhstan in 3Q and 4Q 2024. In Q4 2024, the effect of the impairment was SEK 13m in Germany and SEK 4m in Kazakhstan. In 12M 2024, the

effect of the impairment was SEK 44m in Germany and SEK 4m in Kazakhstan.

31 December 2024

SEK m	US	Germany	CA	Group assets	Total
Non-current assets	1,760	923	13	0	2,697
Total assets	3,054	1,458	183	246	4,941

31 December 2023

				Group
SEK m	US	Germany	CA	assets	Total
Non-current assets	1,360	823	9	7	2,199
Total assets	2,412	1,693	308	292	4,705

31 December 2024

				Group
SEK m	US	Germany	CA	assets	Total
Property, plant and equipment	1,600	711	5	0	2,317
Real Estate	227	236	0	0	464
Rental Fleet	1,264	336	0	0	1,599
Right-of-use assets	19	45	0	0	64
Other PPE	90	94	5	0	190

31 December 2023

				Group
SEK m	US	Germany	CA	assets	Total
Property, plant and equipment	1,201	618	8	1	1,828
Real Estate	205	224	0	0	429
Rental Fleet	874	246	0	0	1,120
Right-of-use assets	15	66	0	0	81
Other PPE	107	82	8	1	198

USA

Unit sales (incl. rental conversion)

Revenue by activity (SEKm)

Equipment sales Aftermarket sales Other

Operating profit and operating margin

Market and sales

The US economy continued to expand in Q4 2024, as GDP increased by an annualised 2.5%. Residential and non-residential construction spending increased by 6.1% and 3.0% respectively in December 2024. Investments in data and logistics centres have contributed to increased demand in Ferronordic's area but resource companies are also turning more optimistic about future prospects. Given uncertainty on policy from the new administration, the range of forecasts for economic growth in 2025 is between 1.5% and 2.7%. Many government investment programs have been temporarily paused but the need for infrastructure investment in the US has previously been a matter of bipartisan consensus. Dealers have accumulated stock during 2024 and there are some signs of growing price competition. In Q4 2024, the market for larger construction equipment (GPE segment) in North America was flat (+1%) compared to Q4 2023. In Ferronordic's sales area, the market is estimated to have decreased by 6%, mainly driven by a decline in excavators. Ferronordic's sales of new machines and conversions from rental fleet however increased by 22% compared to Q4 2023 in the GPE segment and the Company thus gained market share. Ferronordic increased its sales of excavators and wheel loaders in the quarter. In Q4 2024, Ferronordic sold 65 new units, 22 used units and 53 units were converted to sales from rental. The service and parts business was stable in Q4 2024.

Revenue and operating result

Revenue in Q4 2024 amounted to SEK 720m, with a gross margin of 24.8%. The operating result amounted to SEK 65m. The operating margin was 9.0%. In Q4 2024, 58% of revenue was related to sales of new and used equipment and conversions, 9% was related to rental and 33% to service and parts.

Cash flows and balance sheet

The net working capital at the end of Q4 2024 was SEK 587m, an increase compared to SEK 469m in Q4 2023 as inventory increased more than payables. As a percentage of full year revenue, working capital was 21% at the end of Q4 2024. The operating cash flow in Q4 2024 was SEK -455m.

12M 2024

In 12M 2024, revenue in the US amounted to SEK 2,813m with a gross margin of 24.4%. The operating result amounted to SEK 230m with an operating margin of 8.2%.

	2024	2023	%	2024	2023	%
	Q4	Q4	change	12M	12M	change
New units	65	47	n/a	277	47	n/a
Conversion from rental, units	53	5	n/a	122	5	n/a
Used units	22	4	n/a	80	4	n/a
Revenue, SEK m	720	308	n/a	2,813	308	n/a
Gross profit, SEK m	179	82	n/a	686	82	n/a
Operating profit, SEK m	65	25	n/a	230	25	n/a
Gross margin, %	24.8%	26.6%		24.4%	26.6%
Operating margin, %	9%	8%		8.2%	8%
Working capital/LTM Revenue, %	21%	17%		21%	17%

Revenue by activity (SEKm)

Operating profit and operating margin

Germany

Market and sales

German GDP declined 0.2% in Q4 2024 and by the same 0.2% in full year 2024. In 2025, growth is expected at 0%. The IFO business climate index and the PMI manufacturing declined in December. The PMI points to a deep contraction in the manufacturing sector. The business sentiment in the German economy in general, and in the automotive sector in particular, is weak. Based on registrations of new trucks, the total German market for heavy trucks declined by 14% in Q4 2024 and by 13% in full year 2024. Tractor trucks declined but rigid trucks increased. New trucks registered in Ferronordic's sales area decreased by 8% in Q4 2024 and represented approx. 19% of the total German market. Manufacturers and dealers have however pushed trucks into the market despite weak demand, which has resulted in price competition and margin compression. Ferronordic continued to reduce its old stock at low and sometimes negative margins. In addition, Ferronordic also saw strong truck deliveries of orders taken in Q3 2024. Ferronordic's sales of trucks in units increased by 90% to 317, compared to 167 in Q4 2023 and 96 in Q3 2024. Used truck sales in units declined 59% to 47 as Ferronordic continued to decrease its stock of used trucks and its conventional rental fleet. Given the current market conditions, Ferronordic has recognized an impairment of another SEK 13m on its remaining inventory of trucks. Total inventory declined to SEK 262m in Q4 2024 from SEK 574m in Q4 2023. Service and parts sales remained stable in the quarter. Demand for aftermarket services remains strong but Ferronordic experiences a lack of mechanics on the market for some of its workshops.

Revenue and operating result

Total revenue in Germany increased by 1% to SEK 559m (555) in Q4 2024. Truck sales increased by 1%. Service and parts sales decreased by 4% to SEK 151m and as a share of revenue by 1pp to 27%. The gross margin decreased to 7.2% (8.4). Excluding the effect of the inventory impairment, the gross margin increased to 9.6%.

Selling, general and administrative expenses decreased by 37% compared to Q4 2023 to SEK 68m (108). The operating margin increased to -7.3% (-11.1). The operating result increased to SEK -41m (-62). Excluding the effect of the inventory impairment, the operating result and margin improved to SEK -28m and -5.0%.

Cash flows and balance sheet

Cash flows from operating activities amounted to SEK 123m (68). Inventories declined more than payables and at the end of Q4 2024, working capital was at SEK 392m, or SEK 198m lower than in Q4 2023. As a percentage of revenue, working capital decreased to 23% compared to 26% at the end of Q4 2023.

12M 2024

In 12M 2024, revenue in Germany decreased by 25% to SEK 1,702m (2,271) with a gross margin of 8.7% (11.1). The operating result amounted to SEK -120m (-72) with an operating margin of -7.0% (-3.2).

	2024	2023	%	2024	2023	%
	Q4	Q4	change	12M	12M	change
New units	317	167	90%	671	944	-29%
Used units	47	116	-59%	300	394	-24%
Revenue, SEK m	559	555	1%	1,702	2,271	-25%
Gross profit, SEK m	40	47	-13%	149	253	-41%
Operating profit, SEK m	-41	-62	34%	-120	-72	-67%
Gross margin, %	7.2%	8.4%		8.7%	11.1%
Operating margin, %	-7.3%	-11.1%		-7.0%	-3.2%
Working capital/LTM Revenue, %	23%	26%		23%	26%

Revenue by activity

Operating profit and operating margin

Operating profit (SEK m) Operating margin (%)

Market and sales

Central Asia (CA)

Kazakhstan's GDP expanded by 4.8% in 2024 despite a decline in oil production. Strong growth was recorded in agriculture and construction. Inflation slowed down from 9.8% in 2023 to 8.6% in 2024. By the end of 2024, the Kazakh tenge however lost approx. 15% of its value against the US dollar, reflecting the depreciation of the Russian ruble and lower oil prices. As a result, the National Bank increased its base rate in December by 100 bps to 15.25%. High financing costs and poor access to funding is a limiting factor in the Kazakh market for construction equipment. In Q4 2024, the market for larger construction equipment (GPE segment) in Kazakhstan grew by 78% from a low Q4 2023. In 2024, the market increased by 35% compared to 2023. Ferronordic's sales of new machines in units in Q4 2024 remained unchanged at 15 (15). Sales of used construction equipment increased to 10 (8) units. Ferronordic continued to reduce its inventory position and sold machines at low or negative margins in the quarter. Given the age and current market conditions for some of Ferronordic's residual machines at year-end, a SEK 4m impairment was recognized. Total inventory declined to SEK 107m in Q4 2024 from SEK 229m in Q4 2023. Service and parts sales recovered from Q3 2024 but were lower than in Q4 2023.

Revenue and operating result.

Total revenue in Kazakhstan decreased by 38% to SEK 33m (52). Equipment sales decreased by 45%, while service and parts sales decreased by 16%. The gross margin decreased to -10.5% (8.9) and gross profit declined to SEK -3m (5).

Selling, general and administrative expenses decreased by 2%. As a percentage of revenue, these expenses increased to 24% (15.3) on lower revenue. The operating result decreased to SEK -10m (-6), implying an operating margin of -30.5% (-10.7).

Cash flows and balance sheet

Сash flows from operating activities decreased to SEK -69m (23) as payables were settled at the end of the quarter. Working capital increased to SEK 113m, compared to SEK 67m at the end of Q3 2024, mainly due to lower payables and largely unchanged receivables. As a percentage of revenue, working capital was 55% at the end of Q4 2024, compared to 27% at the end of Q3 2024.

12M 2024

In 12M 2024, new machine sales in units decreased by 28% to 52. Revenue decreased by 28% to SEK 205m (284). The gross margin decreased to 9.0% (15.0). The operating profit decreased to SEK -12m (9). The operating margin declined to -5.9% (3.1).

	2024 Q4	2023 Q4	% change	2024 12M	2023 12M	% change
New units	15	15	0%	52	72	-28%
Used units	10	8	25%	35	54	-35%
Revenue, SEK m	33	52	-38%	205	284	-28%
Gross profit, SEK m	-3	5	-174%	19	43	-57%
Operating profit, SEK m	-10	-6	-77%	-12	9	-239%
Gross margin, %	-10.5%	8.9%		9%	15%
Operating margin adjusted, %	-30.5%	-10.7%		-5.9%	3.1%
Working capital/LTM Revenue, %	55%	24%		55%	24%

Condensed consolidated statement of comprehensive income

	Q4	Q4	12M	12M
SEK m	2024	2023	2024	2023
Revenue	1,312	915	4,720	2,863
Cost of sales	-1,096	-782	-3,867	-2,486
Gross profit	216	133	853	377
Selling expenses	-57	-50	-239	-190
General and administrative expenses	-147	-147	-587	-319
Other income	-11	5	8	24
Other expenses	2	-3	-14	-8
Operating profit	2	-62	21	-115
Finance income	3	8	10	31
Finance costs	-37	-23	-147	-48
Foreign exchange gains/(-losses) (net)	66	-49	77	-21
Result before income tax	34	-126	-40	-153
Income tax	-25	37	-50	46
Result for the period	9	-89	-89	-107
Other comprehensive result
Items that are or may be reclassified to profit or loss:
Foreign currency translation differences for foreign
operations	-4	-40	-39	-35
Other comprehensive result for the period, net of tax	-4	-40	-39	-35
Total comprehensive result for the period	5	-128	-128	-142
Earnings per share
Basic earnings per share (SEK)	0.65	-6.11	-6.15	-7.39
Diluted earnings per share (SEK)	0.65	-6.11	-6.15	-7.39

Condensed consolidated statement of financial position

SEK m	31 Dec 2024	30 Sep 2024	31 Dec 2023
ASSETS
Non-current assets
Property, plant and equipment	2,317	2,165	1,828
Intangible assets	248	234	244
Deferred tax assets	132	129	127
Total non-current assets	2,697	2,528	2,199
Current assets
Inventories	1,253	1,363	1,443
Trade and other receivables	617	496	630
Prepayments	11	12	6
Cash and cash equivalents	363	360	426
Total current assets	2,245	2,233	2,506
TOTAL ASSETS	4,941	4,760	4,705
EQUITY AND LIABILITIES
Equity
Share capital	1	1	1
Additional paid in capital	635	634	630
Translation reserve	-61	-57	-22
Retained earnings	1,013	1,004	1,120
Result for the period	-89	-99	-107
TOTAL EQUITY	1,499	1,483	1,622
Non-current liabilities
Borrowings	1,013	999	671
Deferred income	7	5	14
Deferred tax liabilities	281	273	277
Long-term lease liabilities	37	34	59
Total non-current liabilities	1,338	1,310	1,020
Current liabilities
Borrowings	1,263	1,080	1,024
Trade and other payables	794	827	997
Deferred income	11	10	8
Provisions	8	10	12
Short-term lease liabilities	28	40	22
Total current liabilities	2,104	1,966	2,062
TOTAL LIABILITIES	3,442	3,277	3,083
TOTAL EQUITY AND LIABILITIES	4,941	4,760	4,705

Condensed consolidated statement of changes in equity

	Share	Additional paid in	Translation	Retained	Total
SEK m	capital	capital	reserve	earnings	equity
Balance 1 January 2024	1	630	-22	1,013	1,622
Total comprehensive result for the period
Result for the period	0	0	0	-89	-89
Other comprehensive result
Foreign exchange differences	0	0	-39	0	-39
Total comprehensive result for the period	0	0	-39	-89	-128
Contribution by and distribution to owners
Dividends	0	0	0	0	0
Other changes in Equity	0	0	0	0	0
Warrant issue	0	5	0	0	5
Total contributions and distributions	0	5	0	0	5
Balance 31 December 2024	1	635	-61	924	1,499

		Additional
	Share	paid in	Translation	Retained	Total
SEK m	capital	capital	reserve	earnings	equity
Balance 1 January 2023	1	630	13	1,229	1,873
Total comprehensive result for the period
Result for the period	0	0	0	-107	-107
Other comprehensive result
Foreign exchange differences	0	0	-35	0	-35
Total comprehensive result for the period	0	0	-35	-107	-142
Contribution by and distribution to owners
Dividends	0	0	0	-109	-109
Total contributions and distributions	0	0	0	-109	-109
Balance 31 December 2023	1	630	-22	1,013	1,622

Condensed consolidated statement of cash flows

	Q4	Q4	12M	12M
SEK m	2024	2023	2024	2023
Cash flows from operating activities
Result before income tax	34	-126	-40	-153
Adjustments for:
Depreciation and amortization	88	42	362	109
(Gain)/loss from impairment of receivables	2	1	9	-1
Profit on disposal of property, plant and equipment	0	0	0	0
Finance costs	38	23	149	48
Finance income	-1	-8	-4	-31
Foreign exchange losses/(gains) (net)	-65	49	-77	21
Cash flows from operating activities before changes in working capital and provisions	97	-19	399	-7
Change in inventories	178	-108	271	-335
Change in trade and other receivables	-37	-91	41	-50
Change in prepayments	-8	-1	-5	-4
Change in trade and other payables	-667	363	-165	409
Change in provisions	-2	12	-4	12
Change in deferred income	3	-4	-5	-16
Cash flows from operating activities before interest and tax paid	-436	152	533	8
Income tax paid	-19	12	-63	-6
Interest paid	-26	-17	-129	-29
Cash flows from operating activities	-480	147	340	-27
Cash flows from investing activities
Proceeds from sale of property, plant and equipment	88	0	89	0
Interest received	3	4	8	27
Acquisition of property, plant and equipment	462	-22	-65	-149
Acquisition of business	0	-1,093	0	-1,093
Acquisition of intangible assets	0	0	0	0
Cash flows from investing activities	553	-1,112	33	-1,215
Cash flows from financing activities
Dividends	0	0	0	-109
Proceeds from borrowings	127	455	127	467
Repayment of loans	-235	-2	-564	-362
Leasing financing paid	-9	-6	-30	-17
Warrant issue	1	0	5	0
Cash flows from financing activities	-116	447	-462	-21
Net change in cash and cash equivalents	-44	-518	-89	-1,263
Cash and cash equivalents at start of the period	361	950	426	1,688
Effect of exchange rate fluctuations on cash and cash equivalents	45	-6	25	1
Cash and cash equivalents at end of the period	363	426	363	426

Parent company income statement

	Q4	Q4	12M	12M
SEK m	2024	2023	2024	2023
Revenue	-7	9	3	36
Cost of sales	0	-5	-3	-22
Gross profit	-7	3	0	14
Administrative expenses	0	-38	-43	-118
Other income	0	8	1	21
Other costs	0	0	0	0
Operating profit	-6	-26	-42	-82
Finance income	25	29	141	78
Finance costs	-10	-4	-43	-7
Foreign exchange gains/(-losses) (net)	78	-54	97	-20
Result after financial items	88	-55	153	-30
Tax allocation reserve	-31	0	-31	0
Result before income tax	57	-55	122	-30
Income tax	-20	10	-26	6
Result for the period	37	-45	96	-24

Total comprehensive result for the period is the same as the Result for the period.

Parent company balance sheet

SEK m	31 Dec 2024	30 Sep 2024	31 Dec 2023
ASSETS
Non-current assets
Property, plant and equipment	0	0	0
Intangible assets	0	0	0
Financial assets
Holdings in group companies	288	288	288
Loans to group companies	2,042	86	66
Deferred tax assets	0	6	6
Total financial assets	2,330	380	360
Total non-current assets	2,330	380	360
Current assets Trade and other receivables	22	122	47
Prepayments	0	0	0
Loans to group companies	0	1,907	1,784
Cash and cash equivalents	205	67	266
Total current assets	227	2,097	2,097
TOTAL ASSETS	2,557	2,477	2,458
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital	1	1	1
Unrestricted equity
Share premium reserve	640	640	640
Retained earnings	1,283	1,283	1,308
Result for the period	96	58	-24
TOTAL EQUITY	2,020	1,982	1,925
Non-current liabilities
Appropriations	31	0	0
Borrowings	468	458	455
Total non-current liabilities	500	458	455
Current liabilities
Trade and other payables	37	37	78
Total current liabilities	37	37	78
TOTAL LIABILITIES	537	495	534
TOTAL EQUITY AND LIABILITIES	2,557	2,477	2,458

Notes

1. Accounting policies

Ferronordic applies the IFRS® Accounting Standards as adopted by the EU. This report has been prepared in accordance with IAS 34, the Swedish Annual Accounts Act and recommendation RFR 2 (only parent company), issued by the Swedish Financial Reporting Board.

The same accounting and valuation principles were applied in the preparation of this report as in the preparation of the 2023 annual report (regarding the 2023 financial year).

2. Determination of fair values

The basis for the determination of fair value of financial assets and liabilities is disclosed in note 5 in the 2023 annual report. The fair values of the Group's financial assets and liabilities approximate their respective carrying amounts.

3. Seasonal variations

Ferronordic's revenue and earnings are affected by seasonal variations in the construction industry in Central Asia. The first quarter is typically the weakest for sales of machines as activity in construction projects is constrained during the winter months. On the other hand, the demand in aftermarket (sales of service and parts) is usually strong since many customers use the quiet period to service their machines. Demand is typically stronger and relatively even through the rest of the year. In Germany, seasonal trends are less significant. During the summer US business tends to be lower. Rental conversion happens mainly in the 4th quarter.

4. Ferronordic AB (publ)

Ferronordic AB (publ) and its subsidiaries are sometimes referred to as the Group or Ferronordic. Ferronordic AB (publ) is also sometimes referred to as the Company. Any mentioning of the Board is a reference to the Board of Directors of Ferronordic AB (publ).

5. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decisionmaker (CODM). The chief operating decision-maker, who is responsible for allocating resources and assessing the financial performance of the operating segments, has been identified as the Group Executive Management Team. The Group recognises three separate reportable segments: USA, Germany and CA. The segments are partly managed separately due to differences in markets, logistics, supply chains, products, customers and marketing strategies. For each segment, management reviews internal reports on at least a monthly basis. US sales are comprised of new and used construction and other equipment, aftermarket sales, rental, contracting services and other services. Germany's

sales are comprised of new and used trucks, aftermarket sales, rental, mobile crushers and screens and other services. Central Asia (CA), which currently refers to Kazakhstan, has sales comprised of new and used construction and other equipment, mobile crushers and screens, used trucks, aftermarket sales, rental, contracting services and other services.

The accounting policies of the segments are the same as described in Note 4 of the annual report 2023. Group overhead costs, such as Group management costs, are allocated between the segments using principles set forth by the CODM. Information regarding the results of each segment is presented on page 7 of this report. The performance of each segment is mainly evaluated based on revenue, gross profit, gross margin, EBITDA, operating profit and operating margin, as included in internal management reports that are reviewed by the Group's Executive Management Team. The Group had no inter-segment revenues during the periods presented.

Information on Group segments is presented in the front part of this report.

6. Contingencies

Besides as disclosed in this report, the Group has no material contingencies. The Parent Company has issued a number of guarantees, all as security for the subsidiaries' obligations visà-vis suppliers and financial institutions.

7. Related party transactions

There have been no significant changes in the relationships or transactions with related parties for the Group or the Parent Company compared with the information disclosed in the 2023 annual report.

8. Earnings per share

The calculation of earnings per share is based on the result attributable to the shareholders and is thus calculated as the result for the period divided by the average number of shares outstanding. Dilution can potentially follow from the Group's incentive program for its executive management, which includes warrants. For more information, please refer to Ferronordic's annual report for 2023.

Result for the period, SEK m

	2024 Q4	2023 Q4	2024 12M	2023 12M
Result attributable to shareholders, SEK m	9	-89	-89	-107
Average number of shares during the period before dilution, thousand	14,532	14,532	14,532	14,532
Earnings per share before dilution, SEK	0.65	-6.11	-6.15	-7.39
Dilution effect	0	0	0	0
Average number of shares during the period after dilution, thousand	14,532	14,532	14,532	14,532
Earnings per share after dilution, SEK	0.65	-6.11	-6.15	-7.39

9. Events after the reporting date

Information regarding events after the reporting date is set out in the front part of this report (p. 6).

Signatures

The Board of Directors and the Managing Director declare that the report for the fourth quarter of 2024 provides a true and fair overview of the Group's and the Parent Company's operations, financial position and performance, and describes material risks and uncertainties facing the parent company and the companies in the Group.

Stockholm, 20 February 2025

Staffan Jufors Chairman

Aurore Belfrage Director

Annette Brodin Rampe Director

Niklas Florén Director

Lars Corneliusson Director and CEO

Håkan Eriksson Director

This report has not been reviewed by the Company's auditors

Key ratios

Financial information for individual quarters

The financial information below regarding individual quarters during the period 1 October 2022 – 31 December 2024 is collected from Ferronordic's interim reports for the relevant quarters.

Key ratios

Certain key ratios in Ferronordic's interim reports are not defined according to IFRS.

Selected key group ratios

The company considers these ratios to provide valuable supplementary information for investors and the company's management as they enable the assessment of relevant trends. Ferronordic's definitions of these measures may differ from other companies' definitions of the same terms. These ratios should therefore be seen as a supplement rather than as a replacement for measures defined according to IFRS. As the amounts in the tables below have been rounded off to SEK m, the calculations do not always add up due to rounding.

	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
SEK m (or as stated)	2022	2023	2023	2023	2023	2024	2024	2024	2024
Revenue	705	631	674	643	915	1,172	1,095	1,141	1,312
Gross profit	97	85	84	75	133	231	202	204	216
Gross margin, %	13.8%	13.4%	12.5%	11.7%	14.5%	19.7%	18.4%	17.9%	16.5%
Operating profit	-13	-14	-10	-28	-62	21	-4	2	2
Operating margin, %	-1.9%	-2.2%	-1.5%	-4.4%	-6.8%	1.8%	-0,3%	0.1%	0.2%
Result from continuing operations	49	7	64	-89	-89	70	-81	-88	9
Result for the period	-21	7	64	-89	-89	70	-81	-88	9
Earnings per share, SEK1	-1.42	0.46	4.41	-6.16	-6.11	4.83	-5.56	-6.07	0,65
Working capital/LTM Revenue, %	11%	23%	20%	20%	20%	20%	21%	22%	23%
Cash flow from operations	-48	-126	40	-88	147	124	270	427	-480
Equity/total assets, %	58%	59%	62%	62%	34%	33%	33%	31%	30%
Return on equity, LTM%	30%	26%	23%	-2%	-6%	-2%	-7%	-12%	-6%
Return on capital employed, LTM%	11%	11%	11%	-1%	-3%	-2%	-2%	-1%	1%

1 before dilution

USA

	Q4	Q1	Q2	Q3	Dec	Q1	Q2	Q3	Q4
SEK m (or as stated)	2022	2023	2023	2023	2023	2024	2024	2024	2024
Revenue	-	-	-	-	308	699	707	686	720
Gross profit	-	-	-	-	82	169	156	182	179
Gross margin, %	-	-	-	-	26.6%	24.1%	22.1%	26.5%	24,8%
Operating profit	-	-	-	-	25	60	51	53	65
Operating margin, %	-	-	-	-	8.0%	8.6%	7.3%	7.7%	9%
Working capital/LTM Revenue, %	-	-	-	-	17%	13%1	15%1	19%1	21%

¹Based on annualized revenue for Ferronordic's US operations calculated as 9m 2024 / 9 x 12

Germany
	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
SEK m (or as stated)	2022	2023	2023	2023	2023	2024	2024	2024	2024
Revenue	616	548	595	574	555	439	332	372	559
Gross profit	82	68	73	66	47	57	38	14	40
Gross margin, %	13.4%	12.3%	12.3%	11.5%	8.4%	12.9%	11.4%	3.7%	7.2%
Operating profit	-2	5	2	-16	-62	-12	-27	-40	-41
Operating margin, %	-0.4%	0.8%	0.3%	-2.8%	-11.1%	-2.7%	-8.2%	-10.7%	-7.3%
Working capital/LTM Revenue, %	17%	27%	21%	22%	26%	30%	31%	27%	23%

CA

	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
SEK m (or as stated)	2022	2023	2023	2023	2023	2024	2024	2024	2024
Revenue	89	83	80	69	52	34	56	82	33
Gross profit	15	17	11	9	5	6	8	9	-3
Gross margin, %	16.5%	20.4%	14.4%	13.7%	8.9%	17.1%	13.6%	10.4%	-10.5%
Operating profit	5	7	7	0	-6	-3	-1	3	-10
Operating margin, %	6.1%	8.7%	8.6%	0.4%	-10.7%	10.2%	-2.3%	3.1%	-30.5%
Working capital/LTM Revenue, %	-3%	17%	32%	23%	24%	29%	23%	27%	55%

Net debt

	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
SEK m	2022	2023	2023	2023	2023	2024	2024	2024	2024
Long term borrowings	393	416	70	69	671	610	628	999	1,013
Long term lease liabilities	43	38	57	51	59	53	49	34	37
Short term borrowings	274	418	437	428	1,024	1,071	1,178	1,080	1,263
Short term lease liabilities	21	20	24	23	22	26	23	40	28
Total interest bearing liabilities	731	892	588	571	1,776	1,759	1,878	2,153	2,340
Cash & cash equivalents	1,688	1,574	1,127	950	426	217	208	360	363
Net debt / (cash)	-957	-681	-539	-378	1,349	1,542	1,671	1,792	1,978
Net debt / EBITDA (times)	-3.0	-2.0	-1.5	-18.4	-214.7	21.0	9.4	6.6	5.2

Working capital

	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
SEK m	2022	2023	2023	2023	2023	2024	2024	2024	2024
Inventory	460	534	718	699	1,443	1,687	1,466	1,363	1,253
Trade and other receivables	344	365	263	315	630	678	653	496	617
Prepayments	1	7	9	3	6	8	5	12	11
Trade and other payables	573	392	509	470	997	1,283	1,051	827	794
Deferred income	16	12	9	8	8	8	12	10	11
Provisions	1	0	0	0	12	18	11	10	8
Working capital	215	503	472	538	1,063	1,062	1,049	1,026	1,068
Revenue LTM	1,973	2,149	2,422	2,653	5,313	5,314	4,938	4,712	4.720
Working capital / Revenue (%)	11%	23%	20%	20%	20%	20%	21%	22%1	23%

¹Q1-Q3.2024 based on annualized revenue for Ferronordic's US operations calculated as 9m 2024 / 9 x 12

Capital employed

	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
SEK m	2022	2023	2023	2023	2023	2024	2024	2024	2024
Long term interest bearing liabilities	436	455	127	120	730	663	677	1,033	1,050
Short term interest bearing liabilities	295	438	461	451	1,046	1,096	1,201	1,120	1,291
Shareholder equity	1,873	1,886	1,822	1,750	1,622	1,698	1,627	1,483	1,499
Capital employed	2,604	2,778	2,411	2,322	3,397	3,457	3,505	3,636	3,839
Average capital employed	2,336	2,356	2,760	2,974	3,001	3,117	2,958	2,979	3,618
EBIT	247	257	277	-66	-115	-80	-84	-43	21
Interest income	2	7	17	25	31	29	30	15	10
Result LTM	249	265	293	-41	-84	-51	-53	-29	30
Return on capital employed (%)	11%	11%	11%	-1%	-3%	-2%	-2%	-1%	1%

Return on equity

	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
SEK m	2022	2023	2023	2023	2023	2024	2024	2024	2024
Shareholder equity	1,873	1,886	1,822	1,750	1,622	1,698	1,627	1,483	1,499
Average equity	1487	1,486	1,781	1,929	1,748	1,792	1,725	1,617	1,560
Net result LTM	440	384	416	-39	-107	-44	-125	-188	-89
Return on equity (%)	30%	26%	23%	-2%	-6%	-2%	-7%	-12%	-6%

Alternative key ratios not defined by IFRS

EBITDA: Operating profit activities excluding depreciation, amortisation. Provides a measurement of the result from the ongoing business. In financials before and including 2016, certain write-downs of assets were excluded from EBITDA.

EBITDA margin: EBITDA in relation to revenue. Relevant key ratio in evaluating the Group's value creation.

Net debt/(Net cash): Interest-bearing liabilities (including lease liabilities) less cash and cash equivalents. Provides a measurement for the Group's net debt position.

Net debt / EBITDA: Net debt / (net cash) in relation to EBITDA for the last twelve months. Shows to what extent EBITDA covers net debt. Used to evaluate financial risk.

New units sold: Number of new machines and trucks sold. Used to measure and compare number of new units sold during relevant period.

Operating profit: Result before financial items and taxes. Provides a measurement of the result from the ongoing business.

Operating margin: Operating profit in relation to revenue. Relevant key ratio in evaluating the Group's value creation. Revenue growth: Growth in revenue compared to the same period last year, expressed in percentage. Used for comparison of growth between periods as well as comparisons with the market as a whole and with the company's competitors.

Gross margin: Gross profit in relation to revenue. Provides a measurement of the contribution from the ongoing business.

Capital employed: Total equity and interest-bearing liabilities. Shows the capital invested in the Group's business.

Return on capital employed: Adjusted EBIT plus financial income (for the last twelve months) in relation to capital employed (average during the last twelve months). Shows how effectively the capital employed is used.

Return on equity: Net income (for the last twelve months) in relation to shareholders' equity (average during the last twelve months). Net income is calculated before dividends to common shareholders but after dividends to preferred shareholders.

Working capital: Current assets excluding cash and cash equivalents, less non-interest bearing current liabilities. Shows the amount of working capital tied up in the ongoing business.

Working capital/Revenue: Working capital in relation to revenue during the last twelve months. Shows how effective the working capital is used in the business.

Abbreviations

Approximately
Chief Executive Officer
Central Asia
Euro
Full year
International Financial Reporting Standards
First, second, third and fourth quarter
Swedish krona
Million Swedish krona
Versus
Last twelve months
Volvo Construction Equipment
6 months, 9 months, 12 months

This is Ferronordic

Ferronordic is a service and sales company in the areas of construction equipment and trucks. It is the dealer for Volvo CE in all or parts of nine states in the United States and also represents Hitachi, Sandvik, Link-Belt Cranes and Bergmann in parts of the same area. Ferronordic is dealer of Volvo Trucks and Renault Trucks in Germany and dealer of

Vision

Ferronordic's vision is to be the leading service and sales company in the company's markets.

Mission

The company's mission is to support the growth and leadership of the company's customers.

Values

Quality, excellence and respect.

Strategic objectives

• Leadership in the market for construction equipment and trucks
• Service and parts absorption rate of at least 1.0 x
• Expansion into related business areas
• Geographic expansion
• Industry leading digital service and sales platforms
• Expansion and development of sustainable transport services

Volvo CE and certain other brands in Kazakhstan. Ferronordic began its operations in 2010 and currently has 37 outlets and approx. 800 employees. Ferronordic's vision is to be the leading service and sales company in its markets. The shares in Ferronordic AB (publ) are listed on Nasdaq Stockholm. www.ferronordic.com

Strategic cornerstones

• Customer centricity
• Great team
• Building on a strong brands
• Operational excellence

Investment case highlights

• Robust and scalable business model
• Strong brand portfolio and OEM relationships
• Sustainability integrated part of business model
• Positioned to benefit from trends in
  • Electrification
  • Infrastructure investment
  • Shared asset models
• Poised for organic growth and bolt-on acquisitions
  • US Strong market with growth potential
  • Germany Turnaround that will capture recovery
  • Network, brand and product extension opportunities
• Open for strategic M&A
• Experienced management to execute

About this report

Forward-looking statements

Some statements in this report are forward looking and the actual outcomes could be materially different. In addition to the factors explicitly discussed, other factors could have a material effect on the actual outcomes.

Language

In the event of inconsistency or discrepancy between the English and the Swedish version of this publication, the Swedish version shall prevail.

Totals and roundings

Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is that each line item should correspond to its source and rounding differences may therefore arise.

This information is information that Ferronordic AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act (2007:528). The information was submitted for publication on 20 February 2025 at 07:30 CET.

Financial calendar

Annual report 2024 – 11 April 2025 Interim report January – March 2025 – 15 May 2025 Annual general meeting 2025 – 15 May 2025 Interim report April – June 2025 – 14 August 2025 Interim report July – September 2025 – 13 November 2025

Conference call

A presentation for investors, analysts and media will be held on 20 February 2025 at 10:00 CET and is accessible at www.ferronordic.com.

To participate via teleconference, please register on the link below. https://conference.inderes.com/teleconference/?id=5007843

To participate via webcast, please use the link below. https://ferronordic.events.inderes.com/q4-report-2024

Contacts

For investors, analysts and media: Erik Danemar, CFO and Head of Investor Relations +46 73 660 72 31 ir@ferronordic.com

Nybrogatan 6 SE-114 34 Stockholm +46 8 5090 7280

Corporate ID no. 556748-7953 www.ferronordic.com