Autostore Holdings Ltd.

aut-2024-12-31-en iso4217:USDiso4217:USDxbrli:shares549300KYN3M0LSM5A4132024-01-012024-12-31549300KYN3M0LSM5A4132023-01-012023-12-31549300KYN3M0LSM5A4132024-12-31549300KYN3M0LSM5A4132023-12-31549300KYN3M0LSM5A4132022-12-31549300KYN3M0LSM5A4132023-12-31ifrs-full:IssuedCapitalMember549300KYN3M0LSM5A4132023-12-31ifrs-full:SharePremiumMember549300KYN3M0LSM5A4132023-12-31ifrs-full:TreasurySharesMember549300KYN3M0LSM5A4132023-12-31ifrs-full:MiscellaneousOtherReservesMember549300KYN3M0LSM5A4132023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300KYN3M0LSM5A4132023-12-31ifrs-full:RetainedEarningsMember549300KYN3M0LSM5A4132024-01-012024-12-31ifrs-full:IssuedCapitalMember549300KYN3M0LSM5A4132024-01-012024-12-31ifrs-full:SharePremiumMember549300KYN3M0LSM5A4132024-01-012024-12-31ifrs-full:TreasurySharesMember549300KYN3M0LSM5A4132024-01-012024-12-31ifrs-full:MiscellaneousOtherReservesMember549300KYN3M0LSM5A4132024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300KYN3M0LSM5A4132024-01-012024-12-31ifrs-full:RetainedEarningsMember549300KYN3M0LSM5A4132024-12-31ifrs-full:IssuedCapitalMember549300KYN3M0LSM5A4132024-12-31ifrs-full:SharePremiumMember549300KYN3M0LSM5A4132024-12-31ifrs-full:TreasurySharesMember549300KYN3M0LSM5A4132024-12-31ifrs-full:MiscellaneousOtherReservesMember549300KYN3M0LSM5A4132024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300KYN3M0LSM5A4132024-12-31ifrs-full:RetainedEarningsMember549300KYN3M0LSM5A4132023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300KYN3M0LSM5A4132022-12-31ifrs-full:IssuedCapitalMember549300KYN3M0LSM5A4132022-12-31ifrs-full:SharePremiumMember549300KYN3M0LSM5A4132022-12-31ifrs-full:TreasurySharesMember549300KYN3M0LSM5A4132022-12-31ifrs-full:MiscellaneousOtherReservesMember549300KYN3M0LSM5A4132022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300KYN3M0LSM5A4132022-12-31ifrs-full:RetainedEarningsMember549300KYN3M0LSM5A4132023-01-012023-12-31ifrs-full:IssuedCapitalMember549300KYN3M0LSM5A4132023-01-012023-12-31ifrs-full:SharePremiumMember549300KYN3M0LSM5A4132023-01-012023-12-31ifrs-full:TreasurySharesMember549300KYN3M0LSM5A4132023-01-012023-12-31ifrs-full:MiscellaneousOtherReservesMember549300KYN3M0LSM5A4132023-01-012023-12-31ifrs-full:RetainedEarningsMember 2024 Annual Report Directors’ Statements Board of Directors Report 18 Sustainability Statements 27 General 28 Environment 64 E1 Climate Change 65 E5 Resource Use and Circular Economy 83 EU Taxonomy 99 Social 108 S1 Own Workforce 109 S2 Workers in the Value Chain 136 Governance 147 G1 Business Conduct 148 About 1 2024 Overview 2 Letter from the CEO 3 Performance Highlights 5 Business Highlights 6 This is AutoStore 7 Purpose 8 Identity 9 Our Technology 10 Our Business Model 11 Strategic Direction 14 Shareholder Information 16 Contents Readers can navigate between sections by using the hyperlinked menu. All contents are produced by AutoStore. Inquiries about reproduction from this report should be directed to AutoStore. Unless otherwise stated, this report discusses the development of AutoStore Holdings Ltd. and its subsidiaries (referred to as the “AutoStore group”, the “company”, or the “group”). Corporate Governance Report 162 Financial Statements 174 Consolidated Financial Statements 175 Appendices 258 Independent Auditor’s Report 259 Independent Auditor’s Report on Sustainability 261 Responsibility Statement 263 Alternative Performance Measures 264 Definitions 268 1 Contents About About 2024 Overview This is AutoStore Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices 2 Contents 2024 Overview About 2024 Overview Letter from the CEO Performance Highlights Business Highlights This is AutoStore Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices 3 Contents Letter from the CEO Resilient profitability despite market challenges 2024 was a year of resilience and strategic adaptation for AutoStore. Despite global economic uncertainty and a contracting warehouse automation market, we strengthened our position, increased market share, and delivered industry-leading profitability – reinforcing the strength of our business model. Through our unwavering commitment to innovation, customer success, and operational excellence, we are well-positioned to reaccelerate growth. The market has been challenging, and while we've gained share, growth isn't where we want it. Nevertheless, with strong secular drivers, we remain confident in the market’s return – and our ability to seize the opportunity. 1 Premier third-party consultant. About 2024 Overview Letter from the CEO Performance Highlights Business Highlights This is AutoStore Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Market position 2024 was a challenging year for the warehouse automation sector and for AutoStore, marked by macroeconomic headwinds and global uncertainty. In a market that contracted between 7-11%1, we increased our market share and slightly exceeded revenue guidance. We maintained industry-leading profitability with a record high annual gross margin of 73.1% and a robust adjusted EBITDA margin of 47.0%. Despite this, 2024 did not meet the high standards we set for ourselves and we remain committed to continue taking actions to drive performance in any market environment. 4 Contents In an industry driven by customization, we’ve stood by standardization – proving that reducing complexity enhances scalability, flexibility, and financial strength for our entire ecosystem. 1 Premier third-party consultant. 2 Forrester report – The Total Economic Impact of AutoStore. 3 Automated Storage & Retrieval System. About 2024 Overview Letter from the CEO Performance Highlights Business Highlights This is AutoStore Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Strong underlying demand remains intact We ended the year with solid pipeline growth to record high levels, underscoring the strength of our value proposition and continued underlying demand. However, prolonged decision-making cycles have slowed pipeline and backlog conversion rates. Our strategic focus on larger, more complex projects has also extended the sales funnel timeline, even though it is well-aligned with our long-term vision. Optimized operations drive profitability At the same time, the value we deliver remains clear, with customers realizing strong returns – achieving an average payback period of approximately 18 months and an impressive 79% ROI within three years2. These strong returns are made possible by our robust business model and focus on operational excellence. Through a standardized business model, supply chain optimization, dual assembly production, and a diversified supplier base, we have driven a 5.3 p.p. improvement in gross margins year-over-year to 73.1% – reflecting our ability to not only enhance operational efficiency but also ensure strong partner returns and attractive customer payback periods. Growth strategy At our 2024 Capital Markets Day, we outlined our strategy for future growth, focusing on three key drivers: 1. Land-and-expand model: Our extensive customer base of ~1,150 businesses remains a cornerstone of our success, with 45% of 2024 revenue from existing customers. The modular nature of our system allows customers to scale operations efficiently. 2. Winning in the high-throughput market: We have expanded our capabilities to meet growing demand in the high-throughput market, which make up ~40% of the light AS/RS3 market. 3. Innovation to meet customer needs: Innovation remains central to our strategy. In 2024, we established a bi-annual cadence for product announcements, introducing ground- breaking solutions to enhance customer operations, including taller Grid for improved storage density, the Multi- Temperature Grid Solution for expanded versatility, software updates to increase throughput capabilities, and a Motorized Service Vehicle to improve operational efficiency. Strengthening leadership for execution As we enter our next phase of growth, we have strengthened our leadership team to enhance execution and accelerate market impact. The addition of Keith White as Chief Commercial Officer, Parth Joshi as Chief Product Officer, and Carlos Fernandez’ transition to Chief Solutions Officer reinforce our commitment to strategic expansion, customer success, and ecosystem development. Their collective expertise will drive innovation, deepen customer engagement, and strengthen our market presence. With a strong leadership foundation and a focused strategy, we are confident in the future. The light AS/RS3 market remains significantly underpenetrated at ~20%, presenting immense growth potential1. By staying at the forefront of innovation and delivering exceptional value to our customers, we are well-positioned to lead the industry and drive sustainable long-term growth. Thank you to our employees, partners, customers, suppliers, and shareholders – your ongoing support empowers us to redefine warehouse automation and shape the future of our industry. Mats Hovland Vikse Chief Executive Officer 5 Contents Performance Highlights Revenues Gross profit and margin Adjusted EBITDA and margin1 Adjusted EBIT and margin1 EBIT1, 4 Order intake3 Employees2 Employees in R&D2 Nationalities2 Number of customers2 Systems sold2 Countries2 68% 58% 73% 48% 41% 47% 44% 38% 42% 1 Reference is made to the APM section. 2 As of December 31, 2024. 3 Reference is made to definitions. 4 Negative in 2023 due to the settlement with Ocado Group (reference is made to note 7.2). About 2024 Overview Letter from the CEO Performance Highlights Business Highlights This is AutoStore Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Financial numbers are presented in USD million. 2022 2023 2024 6 Contents Business Highlights Partner – AutoStore Arena events in Europe and Asia- Pacific bringing together customers, distribution partners, and internal experts – First event for customers and distribution partners at our new North American headquarters in Salem, NH – 160+ trade shows exhibited by our distribution partners Customer – Systems sold in four new countries: El Salvador, Puerto Rico, Paraguay, and the Philippines – ~40% of sales came from existing customers, including Satair, an airbus services company using our solution for spare parts storage, industrial giant Caterpillar, and 3PL provider DB Schenker – ~60% of sales came from new customers, including German retailers Thalia and Fressnapf, as well as Toyota, using our solution for spare parts storage Product – Expanded 18-level Grid: increasing Grid height by two levels, increasing storage density by up to 12.5% – Multi-temperature solution: allows multiple temperature zones within a single AutoStore cube – Motorized service vehicle: a safety tool that allows for easy maneuvering on top of the Grid for routine maintenance tasks – Cube control software enhancements: allows for proactively addressing issues during breaks or off-hours, turning unplanned stops into planned interventions People – Strengthened innovation and growth capabilities by appointing Parth Joshi as new Chief Product Officer and Carlos Fernandez as Chief Solutions Officer in Q2 – Appointed Keith White as new Chief Commercial Officer in Q3 Operations – Second production facility in Thailand fully operational in Q2, further underpinning supply chain resilience and growth capacity – ~2,000 Robots produced in Thailand facility since production start – Lead times reduced from 20 to 15 weeks Investors – Hosted our second Capital Markets Day at our customer and distribution partner THG’s high- throughput site in Q3 About 2024 Overview Letter from the CEO Performance Highlights Business Highlights This is AutoStore Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices 7 Contents This is AutoStore About 2024 Overview This is AutoStore Purpose Identity Our Technology Our Business Model Strategic Direction Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices 8 Contents – Standardized and modular design to fit anywhere – Easy integration into any setup – Scalable to meet changing needs – Space and energy efficiency – High reliability and unbeaten uptime Return on investment (ROI): AutoStore offers many advantages for businesses: AutoStore empowers its customers with a strong ROI. We help our customers reduce costs, become more efficient, and provide a payback period of typically between 1 and 3 years. Explore About 2024 Overview This is AutoStore Purpose Identity Our Technology Our Business Model Strategic Direction Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Purpose Moving things forward AutoStore™ holds a simple yet powerful vision: to store and move things for everyone, everywhere. Founded in Norway, we have grown into a global technology company. AutoStore uses advanced software to automate and orchestrate order fulfillment. Our goal is to ensure orders arrive faster than ever, with minimal environmental impact. That is how we help brands exceed customer expectations. We have more than 1,650 systems running in nearly 60 countries, and we grow continuously as a community of customers, employees, distribution partners, suppliers, and connected technologies. Automation should make life easier, and by listening carefully to our community, we innovate to meet the industry’s most complex needs. With AutoStore, brands gain speed, efficiency, and improved workplaces. And much more floor space. 9 Contents Identity Culture is a key success factor AutoStore believes in the power of automation. It enables the business to work smarter, with greater reliability and speed. As fulfillment journeys are automated, AutoStore grows a community where employees, distribution partners, end-customers, and suppliers support one another. In 2024, AutoStore defined a new vision and mission. The company also described its culture code, with values, desired behaviors, and practices. This work embodies AutoStore’s commitment to nurturing a robust culture marked by openness, a flat hierarchy, and lean processes. Mission Build an AutoStore community that innovates to make life easier. Vision Store and move things for everyone, everywhere. Lean AutoStore generates more customer value with fewer resources. Transparent AutoStore is fair and easy to do business with. Bold AutoStore has the creativity, courage, and willingness to take risks. Our values About 2024 Overview This is AutoStore Purpose Identity Our Technology Our Business Model Strategic Direction Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices 10 Contents Bins Products are stored in Bins, a durable container that holds up to 30 kg of stock. On average, 40,000 Bins are stacked per site. Robots Robots ride on rails along the top of the Grid, retrieving Bins as needed. On average, 45 Robots are in operation per site. Controller The Controller is the command center and uses the cube control software to manage both Bin traffic and the AutoStore database. Grid The Grid is the aluminum framework that holds the columns of vertically stacked Bins. On average, the Grid is 5.4 meters high and holds 16 levels of 330-mm Bins. Ports Ports are workstations where operators pick, replenish, tag, pack, and distribute products. On average, 10 Ports are installed per site. Uptime: Worldwide uptime of 99.7% . Reliability: 99.9% picking accuracy. Speed: 650 Bins per hour x number of Ports. Explore Space: 4x reduction of space vs. conventional storage. About 2024 Overview This is AutoStore Purpose Identity Our Technology Our Business Model Strategic Direction Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Our Technology Software powered technology Inspired by the Rubik’s Cube, AutoStore’s innovation was designed to minimize the air gaps typically found in traditional shelving systems. The company’s key value proposition is to deliver easy- to-use, software-powered automation technology. AutoStore offers a world-class suite of hardware and software, providing end-to-end support from solution design to Robot operations. Using advanced routing algorithms, powerful data insights, and reporting tools, we continuously enhance our software and robotic solutions. By leveraging data across installations, we drive innovation and push the boundaries of automation. AutoStore’s software seamlessly integrates with our hardware, optimizing system performance by intelligently coordinating Robot movements, Bin management, and order fulfillment. 11 Contents Our Business Model About 2024 Overview This is AutoStore Purpose Identity Our Technology Our Business Model Strategic Direction Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices 1 Standardization AutoStore’s standardized, modular design make warehouse automation more accessible by simplifying deployment and ensuring a seamless fit for a broad range of use cases. Standardization is a fundamental driver of AutoStore’s scalability and profitability, enabling efficient operations and seamless adaptability across diverse customer needs and a wide range of end verticals. Customers have the flexibility to select the quantity of Bins, Robots, and Ports they desire, as well as Grid size and shape. The system's modular design provides the flexibility to scale up or down to meet business demands, both for long-term growth or peak seasons, without shutting down operations. The standardized and modular approach makes AutoStore an ideal choice for both greenfield and brownfield facilities (i.e. existing warehouses). 12 Contents End markets No. of systems1 2024 share of revenues Selected blue chip customers Apparel & sports accessories ~250 20% PUMA, Decathlon, XXL, Lids, Boozt, CFG, Crocs, Bike24 Industrials2 ~520 22% FANUC Pertronics, ABB, Siemens, Bosch, 3M, John Deere, Cat, American Airlines 3PL ~195 14% UPS, DB Schenker, DHL, Swiss Post, Kuehne+Nagel, CJ Logistics, GEODIS Other retail3 ~160 12% Kid, RoyalDesign, Kitchentime, Chewy, Jollyroom, Gymgrossisten Grocery and food ~140 7% SSG , HEB, H Mart, Weiling, Peapod, ASDA, Weee!, Weiling Automotive ~135 9% Federal Mogul Motorparts, Continental, GS Bildeler, AGCO, Bertel O Steen Healthcare ~150 8% Medline, Johnson & Johnson, Pfizer, CVS Pharmacy, Osaki, Apotea, Cardinal Health Luxury & personal care ~40 4% Gucci, Longines, Eton, Manor, Shiseido Consumer electronics ~60 4% Best Buy, Dustin, Komplett.no, Olympus, Power Our Business Model About 2024 Overview This is AutoStore Purpose Identity Our Technology Our Business Model Strategic Direction Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices 2 Scalability With ~1,150 unique customers, AutoStore’s solution supports a wide range of end-markets, system types, and throughput requirements offering various complexity levels to meet customer needs. The AutoStore system can serve all end markets and all types of warehouses, allowing the company to offer its solutions to a variety of industries, including grocery, retail, third-party logistics (3PL), industrials, and healthcare. Additionally, AutoStore launched Pio to offer small- and medium-sized businesses a simplified warehouse automation solution using AutoStore products. 1 As of December 31, 2024. Includes installed base and backlog. 2 End markets include aviation, aerospace and defense, building and construction, machinery, and other industrials. 3 End markets include toys & games, office supplies, home supplies, generalist retailer, books & media. 13 Contents Distribution partners 23 Business development managers 39 Global – Swisslog – Dematic – Element Logic – Bastian Solutions – Fortna – SoftBank Robotics – Kardex – THG Ingenuity Europe, the Middle East and Africa – Hörmann Intralogistics – AM Logistics Solutions – Reesink Logistic Solutions – Lalesse Logistic Solution – Fives Group – Smartlog – StrongPoint – Adameo Asia Pacific – LG CNS – Okamura – Asetec – Samsung SDS – Hyundai Glovis – Toyo Kanetsu Co., Ltd. (TKSL) North America – KPI Solutions Certified sales representatives 3,000 In-house partner sales managers 33 Global account managers 9 Our Business Model As of December 31, 2024, AutoStore’s global go-to-market strategy consists of 23 distribution partners with business development, project management, and pre/post-sales support services. The distribution partners are supported by AutoStore’s in-house partner sales managers (PSMs), business development managers (BDMs), and global account managers (GAMs). PSMs act as the main point of contact between AutoStore and distribution partners, while BDMs drive market awareness and hand over leads to distribution partners. GAMs serve AutoStore’s interests in large, complex, multi-site customer accounts and work to encourage global adoption of AutoStore’s technology across their enterprise-wide network. In 2024, AutoStore focused on further expanding in-house partner support teams to encourage continued growth. This model allows the company to scale up efficiently around the globe, driving sales and building a growing base of installed systems. About 2024 Overview This is AutoStore Purpose Identity Our Technology Our Business Model Strategic Direction Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices 3 Partner distribution model 14 Contents Strategic Direction Reaffirmed priorities Vision We aim to store and move things for everyone, everywhere Building an AutoStore community that innovates to make life easier Mission About 2024 Overview This is AutoStore Purpose Identity Our Technology Our Business Model Strategic Direction Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices AutoStore is the clear market leader for cube technology within the light AS/RS market. The company made substantial investments across the business in 2024, and continues to execute on its strategy and initiatives to outgrow the market. The overall strategic direction remains the same as previously communictaed, with the leading aspiration being to grow revenue beyond market growth by continuing to capture market share, and to do so while maintaining high profit margins. Our aspiration to "enable standardization of automation Enable standardization of automation with and beyond the cube and outgrow market with and beyond the cube and outgrow the market" aligns with AutoStore’s commitment to deliver standardized automation solutions both within our cube technology and as new products that integrate with the system. The three growth engines drive AutoStore toward achieving our vision, mission, and aspiration. These also provide clear guidance on how we plan to accomplish our goals. Enable standardization of automation with and beyond the cube and outgrow market Drive global adoption of the cube Deliver new standardized products adjacent to the cube A results- oriented organization Expand offering to standardized products beyond the cube Customer- centric partner- based go-to market model Product development and customer centricity Efficient operations and value chain setup Continuously optimize operating model Key enablers Growth engines Aspiration 15 Contents Strategic Direction About 2024 Overview This is AutoStore Purpose Identity Our Technology Our Business Model Strategic Direction Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Key objectives In 2024, AutoStore outlined three key objectives to work towards 2027. These objectives will guide the company's daily priorities. Objective 1 Objective 2 Objective 3 Protect AutoStore’s strong position within the low- and medium-throughput segment. Expand AutoStore’s light AS/RS leadership position into high- throughput. Expand product portfolio beyond the cube. The low- and medium-throughput segment has historically been the “bread-and-butter” of AutoStore's success. As this segment constitutes nearly 60% of the annual market in 2024, it is crucial for AutoStore to continue to serve it effectively. There is a significant untapped potential in the high-throughput segment, accounting for ~40% of the total annual market in 2024. AutoStore’s capabilities to serve this segment have improved significantly over the past five years. While the strategy and prioritization of relevant products is still in progress, AutoStore is taking an actively opportunistic approach to relevant opportunities in this space. 16 Contents Shareholder Information About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices 17 Contents Share capital 34.3 USD million Number of shares 3,428,540,429 About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices AutoStore is listed on the Oslo Stock Exchange (OSE: AUTO). The company’s share capital was USD 34.3 million at the end of 2024, divided into 3,428,540,429 shares with a nominal value of USD 0.01 each. AutoStore has one class of shares. As of December 31, 2024, the market value of the company’s shares was NOK 38.1 billion, based on a price per share of NOK 11.11. The share price closed 44.4% below the share price at the beginning of the year. The highest daily closing price during the year was NOK 21.8, while the lowest daily closing price was NOK 9.1. Geographic distribution of shareholders as of year-end 20241 1 The shareholder information disclosed is from the Euronext VPS share register. The daily average trading volume on Euronext was 2,839,452 shares in 2024. This corresponded to an average daily turnover of NOK 38.9 million. The number of shareholders was 7,414 at the end of 2024 (2023: 7,320), with non-Norwegian shareholders holding 92.6% of the company. The majority of shareholders as of year-end 2024 were from the U.S., Ireland, Norway, Sweden, Luxembourg, Bermuda, UK, and Japan. The 20 largest shareholders combined owned 87.5% of the company’s shares. Shareholders are primarily institutions. Various employees of AutoStore, including key executives, hold shares and share options in the company. For further details, including an overview of the shareholders of the group, reference is made to note 4.8 in the consolidated Financial Statements. 18 Contents Board of Directors Report Unless otherwise stated, this report discusses the development of AutoStore Holdings Ltd. and its subsidiaries (referred to as the “AutoStore group,” the “company,” or the “group”). AutoStore is headquartered in Nedre Vats, Norway, and has offices in Norway, the U.S., the UK, Germany, France, Spain, Italy, Austria, South Korea, Japan, Australia, and Singapore, as well as production facilities in Poland and Thailand. Read more about AutoStore. Figures in brackets denote the corresponding period in the previous year. Adjusted figures are presented in the Alternative Performance Measures (APMs) section, which also includes definitions, descriptions, and reconciliations of adjustments. The Board of Directors Report includes confirmation over the Sustainability Statements, Corporate Governance Report, and the Financial Statements for 2024. About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices 19 Contents Financial results USD million 2024 2023 Revenue and other operating income 601.4 645.7 Cost of materials -161.6 -207.6 Employee benefit expenses -81.8 -79.1 Other operating expenses -71.5 -310.4 EBITDA¹ 286.4 48.5 Adjusted EBITDA¹ 282.8 308.5 Depreciation -15.8 -10.6 Amortization of intangible assets -47.0 -51.5 Impairment -1.1 - EBIT¹ 222.5 -13.6 Adjusted EBIT¹ 249.8 286.5 Finance income 11.2 8.4 Finance expense -49.2 -43.1 Foreign exchange gains/(losses) -8.4 2.0 Profit/loss before tax 176.1 -46.3 Income tax expense/benefit -39.5 13.7 Profit/loss for the period 136.6 -32.6 About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Results for the year The group reported total revenue and other operating income of USD 601.4 million in 2024 (USD 645.7 million), representing a year-over-year reduction of 6.9% impacted by longer conversion times. This was slightly ahead of the revenue level communicated in the range of USD 575-600 million on the company’s Capital Markets Day in September 2024. The majority of revenue was attributable to sales of AutoStore systems. Development in revenues in the Europe, Middle East, and Africa (EMEA) regions were stable year-over-year of USD 396.3 million in 2024 compared to USD 397.8 million in 2023. Revenues in North America (NAM) declined to USD 160.2 million (USD 203.9 million), while the Asia-Pacific (APAC) region ended at USD 44.8 million in 2024, compared to USD 44.0 million in 2023. Cost of materials totaled USD 161.6 million (USD 207.6 million). Gross profit for 2024 was USD 439.8 million (USD 438.1 million), while the gross margin was 73.1% in 2024 compared to 67.8% in 2023. The positive gross margin development reflects AutoStore’s continued focus on operational efficiency and more favorable cost of materials. AutoStore’s employee benefit expenses amounted to USD 81.8 million for the full year 2024 (USD 79.1 million). Due to the development of the company’s share price in 2024, the social security tax on management options decreased. This option cost was negative USD 4.0 million in 2024. In 2023, the cost was USD 7.4 million. Excluding this item, employee benefit expenses in 2024 were USD 85.8 million, an increase from USD 71.7 million in 2023. The development is mainly connected to an increase in headcounts following the company's operational and strategic initiatives, including the full-year effect of recruitments made in 2023. 1 Reference is made to the APM section. Other operating expenses amounted to USD 71.5 million (USD 310.4 million). 2023 was impacted by the expenses related to the settlement with Ocado Group and associated legal fees recorded in the the second quarter the same year. Excluding the adjustment item, other operating expenses amounted to USD 71.1 million in 2024 compared to USD 57.8 million in 2023. The increase was primarily driven by continued operational expansion, including new facilities, increased marketing and commercial efforts, and costs associated with increased headcounts. 20 Contents Reported EBITDA1 ended at USD 286.4 million (USD 48.5 million) with an EBITDA margin1 of 47.6% (7.5%), while adjusted EBITDA1 and adjusted EBITDA margin1 were USD 282.8 million (USD 308.5 million) and 47.0% (47.8%), respectively. The adjusted EBITDA margin1 remained stable as a result of the strong gross margin throughout the year. Depreciation of tangible assets and leases amounted to About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices USD 15.8 million in 2024 (USD 10.6 million), with the increase resulting from investments in new facilities, which contributed to higher depreciation for these assets and the increased balance and depreciation of lease assets. Amortization of intangible assets totaled USD 47.0 million (USD 51.5 million), and decreased following the end of useful life of customer relationships (see note 3.4). Amortization of intangible assets relates primarily to the purchase price allocation made when Thomas H. Lee Partners acquired the group in 2019. Finance income was USD 11.2 million (USD 8.4 million), while finance expenses totaled USD 49.2 million (USD 43.1 million). The year-over-year development in finance expense mainly included interest cost on the group's long- term debt, a financial cost element related to the settlement with Ocado Group (discounting effect), and interest on lease liabilities. Net foreign exchange gains/ losses were USD -8.4 million (USD 2.0 million). Profit before tax was USD 176.1 million (USD -46.3 million), which resulted in a tax charge of USD 39.5 million (positive USD 13.7 million). The profit after tax was USD 136.6 million (USD -32.6 million) and basic earnings per share ended at USD 0.041 (-0.010). Cash flow Cash flow from operating activities was USD 143.4 million for the full year 2024 (USD 152.5 million). In 2024, the EBITDA contribution was USD 286.4 million, up from USD 48.5 million in 2023. This contribution was offset in 2024 by payments made in relation to the settlement with Ocado Group of USD 127.8 million. In comparison, the working capital contribution of this settlement was positive in 2023, following the increase in liabilities (settlement was made in the second quarter of 2023). The settlement liability matures in June 2025. Cash outflow from investing activities was USD 46.7 USD million 2024 2023 Cash flow from operating activities 143.4 152.5 Cash flow from investing activities -46.7 -43.2 Cash flow from financing activities -44.2 -36.8 Net change in cash and cash equivalents 52.5 72.5 Cash and cash equivalents, beginning of period 253.3 174.8 Effect of change in exchange rate -9.7 6.0 Cash and cash equivalents, end of period 296.1 253.3 million in 2024 compared to USD 43.2 million in 2023. The development was linked to continued investments in intangible assets and development expenditures as a result of the group's expansion and R&D efforts. Cash outflow from financing activities was USD 44.2 million (USD 36.8 million). This mainly related to interest paid on the group's long-term debt, USD 32.2 million compared to USD 31.0 million in 2023. Additionally, financing activities included higher payments on the group’s lease commitments due to additional lease agreements in 2024. Cash was also affected by the translation of cash held in other currencies to USD. The group held USD 296.1 million in cash as of December 31, 2024, compared to USD 253.3 million at the end of 2023. 1 Reference is made to the APM section. 21 Contents Financial position The group’s total assets as of December 31, 2024 were About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices USD 2,026.0 million, compared to USD 2,131.8 million as of December 31, 2023. Property, plant and equipment and right-of-use (RoU) assets increased at year-end 2024 following new lease agreements and investments in primarily facilities in Thailand and the U.S. Intangible assets and goodwill amounted to USD 436.5 million (USD 492.0 million) and USD 953.0 million (USD 1,061.9 million), respectively. The reduction was attributable to currency translation effects and amortization of intangible assets. For more information on the development, reference is made to notes 3.3 and 3.4. Current assets increased to USD 534.6 million as of December 31, 2024 from USD 489.3 million as of December 31, 2023. The increase was mainly attributable to an increase in the cash reserves of USD 42.8 million and trade receivables of USD 24.9 million. The reduction in other current receivables followed the settlement of a tax receivable of USD 19.7 million in the fourth quarter of 2024. Equity increased to USD 1,284.0 million as of December 31, 2024 (USD 1,274.9 million). Movement in equity included the profit allocation for the period, offset by negative exchange rate differences linked to the translation of results and the financial position of subsidiaries and the parent company from other currencies into USD. Total non-current liabilities ended at USD 549.2 million (USD 637.1 million) as of December 31, 2024. The development mainly resulted from the reduction in non-current liabilities of USD 57.0 million related to the settlement with Ocado Group. The remaining liability to Ocado Group will be fully settled by June 2025 and is therefore current in nature. The reduction of the group’s non-current interest-bearing liabilities (the group’s long- term debt) was mostly due to translation effects. USD million 2024 2023 Goodwill 953.0 1,061.9 Intangible assets 436.5 492.0 Other 101.8 88.7 Total non-current assets 1,491.4 1,642.5 Total current assets 534.6 489.3 Total assets 2,026.0 2,131.8 Total equity 1,284.0 1,274.9 Non-current interest-bearing liabilities 418.4 432.8 Other non-current liabilities 130.9 204.3 Current liabilities 192.8 219.7 Total liabilities 742.0 856.8 Total equity and liabilities 2,026.0 2,131.8 Current liabilities reduced to USD 192.8 million as of December 31, 2024, from USD 219.7 million as of year-end 2023. This was mainly due to the reduction of the current liabilities related to the settlement with Ocado Group, as referred to above. For more information on the settlement liabilities, reference is made to note 4.2. 22 Contents Operational Highlights About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Read more about AutoStore’s highlights for the year. People and Organization AutoStore is committed to building a world-class workforce and ensuring that the company’s selection processes actively foster equal opportunities and diversity. The company prohibits discrimination in any form, whether based on political views, union membership, sexual orientation, disability and/or age. Read more about AutoStore’s workforce, including gender diversity, salary distribution, incidents, and occupational health and safety in our Sustainability Statements. AutoStore expanded its leadership team during the year: – Parth Joshi was appointed Chief Product Officer. Parth brings extensive global experience from high-tech and high-growth companies, including Cisco and Eaton. Joshi will lead the product roadmap ensuring alignment with business objectives while strengthening presence in the U.S. market – Carlos Fernandez was appointed Chief Solutions Officer, following four years as AutoStore’s Chief Product Officer. In his new position, Fernandez will be responsible for building out a dedicated solutions team of full end-to- end support to AutoStore's customers and distribution partners – Keith White joined AutoStore as Chief Commercial Officer in November 2024. Keith has led the global transformation of major organizations such as Hewlett Packard Enterprise (HPE GreenLake) and Microsoft (Microsoft Azure). Research and Development Through 25 years of dedicated research and development (R&D), AutoStore has developed both hardware and software to help businesses achieve efficiency gains in the storage and retrieval of goods. As of the end of 2024, AutoStore has more than 3,200 granted patents and patent applications related to its cube storage technology, and the company is continuously developing new features and capabilities to enhance this technology. In 2024, the group reported USD 30.8 million (USD 29.5 million) in development expenditure and USD 11.2 million (USD 6.7 million) in purchase of intangible assets. AutoStore always puts customers at the center of its R&D work, from early discovery efforts to product development and subsequent release of proprietary solutions. The company’s disciplined R&D process also involves analyzing new markets and applications, competitors, and other technology groups. 23 Contents Sustainability About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices For the first time in 2024, AutoStore has published its Sustainability Statements prepared in accordance with the requirements of the Norwegian Accounting Act Sections 2-3 and 2-4, including the European Sustainability Reporting Standards (ESRS). Corporate Governance Statement The Board of Directors is committed to ensuring trust in the company and enhancing shareholder value through effective decision-making and open communication between the Board of Directors, management, shareholders, and other stakeholders. The company’s corporate governance framework is designed to decrease business risks, maximize value, and ensure efficient and sustainable resource utilization for the benefit of shareholders, employees, and society at large. The corporate governance framework is subject to annual review and discussion by the Board of Directors. AutoStore complies with the Norwegian Code of Practice for Corporate Governance. For more information, reference is made to the Corporate Governance Report and the governance section in the Sustainability Statements. The AutoStore Share AutoStore was listed on the Oslo Stock Exchange on October 20, 2021 (OSE: AUTO). Its share capital was USD 34.3 million at the end of 2024, divided into 3,428,540,429 shares with a nominal value of USD 0.01 each. AutoStore has one class of shares. AutoStore aims to inform all interested parties of important events and the company’s development through quarterly and annual reports and updates, financial presentations, capital market days, stock exchange notices, and other company updates. Read more about AutoStore’s Investor Relations on our webpage. 24 Contents Dividend Policy About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Any future proposal by the Board of Directors to declare a dividend will be subject to applicable laws and factors such as the company’s financial position, operating results, capital requirements, contractual restrictions, general business conditions, and other considerations the Board deems relevant. The company will evaluate possible future dividend distributions by reference to its medium-term leverage policy of not exceeding two times net debt divided by adjusted EBITDA. In determining annual dividend levels, and to maintain necessary strategic flexibility, the Board of Directors will also take into account not only legal requirements but also investment plans, capital expenditure plans, restrictions pursuant to the company’s debt facilities, and financing requirements. The Board of Directors is not proposing any dividend distribution for the financial year 2024. Risk Management Risk management is an integral part of all AutoStore’s business activities and decisions. The Board of Directors oversees AutoStore’s system of risk management and reviews key risks through annual updates. In addition, specific risk topics are subject to more frequent updates to the Audit Committee. The group seeks to minimize the potential adverse effects of such risks through sound business practice and risk management. Risk management is carried out in accordance with policies approved by the Chief Executive Officer. Operational risks AutoStore actively manages risks related to the quality, design, and assembly of its products, as well as risks related to research and development (R&D) activities and the development and economic lifecycle of the company’s products. As a robotic and software technology developer, AutoStore is exposed to risks related to cyberattacks both as a potential target and as a part of its customers’ supply chains. AutoStore has a risk-based approach to cybersecurity and constantly aims to build and improve a resilient operation. AutoStore performs annual third-party assessments of the technical infrastructure through penetration tests and overall cybersecurity maturity based on recognized standards. 25 Contents Industrial espionage is an increasing problem, often using About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices digital vectors to get access to information. The aim of the espionage is to gain insight into technology, product information, or business plans. AutoStore has a lot of intellectual property (IP), source code, and also data that may become IP in the future. Competitors may use industrial espionage to gain access to AutoStore’s information and data, or to inflict damage on AutoStore. AutoStore relies on integrator partners (distribution partners) to distribute and/or sell its systems and has therefore built strong and long-standing relationships with its distribution partners. However, as AutoStore has grown and built up a more complementary business, there is a risk of this distribution partner model being exposed to a higher degree of stress. Risk of losing distribution partners is therefore monitored on a regular basis. Further, the group’s manufacturing strategy entails outsourcing non-core activities like the production of system components to skilled third-party manufacturers. Outsourcing manufacturing allows AutoStore to focus its engineering expertise on robot design. The group’s third- party suppliers and manufacturers – located primarily in Poland, Germany, Estonia, Sweden, Norway, as well as Thailand, Malaysia, and Vietnam – are key operational factors. The company’s supply chain is primarily managed through supplier contracts, and operations are highly dependent on the availability and quality of certain materials, parts, and components. As AutoStore expands its operations with new production facilities, it is essential for the group to remain diligent in implementing health and safety practices to uphold a good record. An incident in the workplace will always be important to AutoStore. Furthermore, AutoStore is part of a global supply chain and recognizes risks, especially in the upstream value chain, of breaches of human rights. For more information on these risks, reference is made to the Sustainability Statements. AutoStore gives high priority to protecting its intellectual property and other proprietary rights through patents, trademarks, copyrights, trade secrets, license agreements, confidentiality agreements, and other contractual measures. AutoStore is subject to legal proceedings and claims arising in the ordinary course of business. Financial risks The group is exposed to a range of risks affecting its financial performance, including market, liquidity, and credit risks. These have been described in note 4.7. Market risks AutoStore operates in a competitive market that is evolving rapidly and is subject to changing technologies, shifting customer needs and expectations, and a high probability of new, competing products. The need for businesses to increase the efficiency of their warehousing activities has resulted in the increasing adoption of warehouse automation in global supply chains. The trend towards automated warehousing is impacting the competitive landscape and will continue to do so. Increased customer-driven demand for automated storage and retrieval system (AS/RS) solutions and technological advancements is attracting competitors to the AS/RS market. AutoStore’s operations are affected by global economic conditions. Economic downturns and uncertainty about future economic prospects may impact the company’s operative markets negatively, as well as suppliers and their production. Global conflict, especially the war in Ukraine, continues to pose an increased risk of negative impacts on the global economy and political tensions. Furthermore, AutoStore continues to monitor the recent developments related to U.S. tariffs. For more information, reference is made to note 7.5. Climate risks The company’s management assesses where climate risks could have a significant impact on its financial statements and related estimates, and monitors the possible introduction of environmental regulations and taxes that could increase future production costs. Among the assessed transition risks related to the group’s operations and value chain were regulatory, technological, market, and reputational risks. As of December 31, 2024, the identified climate related risks are not expected to have a significant impact on the group's assets or liabilities. Management will continue to monitor and assess the actual and potential effects of climate related risks going forward, including plans to mitigate these. AutoStore continues to monitor scenarios that may result in increased risks. For more information, reference is made to AutoStore’s Sustainability Statements. 26 Contents Outlook About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices AutoStore continues to observe resilient underlying market dynamics, evidenced by sustained customer engagement, a record-high qualified pipeline, and a robust order backlog. The volume and quality of customer dialogues and proposals remain constructive, reinforcing the company’s conviction in the long-term demand for warehouse automation solutions. While customers continue to recognize the compelling payback associated with AutoStore’s solutions, there is understandable caution around committing to capital investments in warehouse automation amid ongoing uncertainty around global trade flows. This is contributing to longer conversion timelines with customers choosing to delay or defer automation investments altogether. Third-party research1 released on April 7, 2025 indicates that the latest round of tariffs introduced by the U.S. has the potential to significantly disrupt global supply chains. We anticipate this will contribute to a more cautious tone across customer segments in 2025. Amid this backdrop, AutoStore remains focused on 1 Interact Analysis. executing its long-term strategy. Initiatives introduced in 2024 to strengthen commercial execution are beginning to show positive momentum. Under new commercial leadership, the company has sharpened its go-to-market approach and reallocated resources toward high-potential growth areas such as the high-throughput segment. Concurrently, AutoStore is deepening engagement across its installed base, supporting higher account penetration and reinforcing its customer-first approach. The company continues to closely monitor potential policy changes, including developments related to U.S. tariffs. In 2024, North America accounted for approximately 25% of AutoStore’s revenue. Based on current information – and given that its products are manufactured outside the U.S. and distributed through a partner network – AutoStore anticipates a moderate direct impact over time. While tariffs may raise costs for partners, any resulting end- customer price adjustments are expected to be moderate and manageable. The broader uncertainty around these policy shifts may, however, weigh on demand. In response to market conditions, AutoStore is revitalizing its commercial function with new leadership, accelerating growth through AutoStore-as-a-Service, and implementing cost-efficiency measures expected to reduce annualized operating expenditure by approximately USD 10 million starting June 1, 2025. These actions are aimed at maintaining high profitability, strengthening our competitive position, and supporting long-term growth and resilience. While uncertainties persist, AutoStore’s conviction in the long-term potential of warehouse automation remains strong. The group continues to focus on key structural growth drivers, including the rise of e-commerce, labor cost pressures, and increasing demand for operational efficiency. Going Concern The Board of Directors and CEO of AutoStore confirm that the accounts have been prepared on a going concern basis and that the going concern assumption applies and is appropriate. 27 Contents Sustainability Statements About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 28 Contents Corporate Social Responsibility About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices AutoStore is dedicated to upholding its corporate social responsibility by integrating sustainable solutions into its operations and business strategy. We aim to reduce our environmental footprint, create a positive social impact for employees, customers, distribution partners, and communities, and fostering ethical governance. These Sustainability Statements represent our first sustainability report aligned with the Corporate Sustainability Reporting Directive (CSRD) in accordance with the requirements of the Norwegian Accounting Act Sections 2-3 and 2-4, including the European Sustainability Reporting Standards (ESRS). Our aim is to be transparent, balanced, and comprehensive about the state of ESG at AutoStore today, alongside the company’s direction for the future. AutoStore aims to support our community of stakeholders on their sustainability journey, striving to be a key enabler in helping end users of the AutoStore system achieve their sustainability goals by leveraging the system’s benefits and contributions. In response to environmental challenges, regulatory changes, and evolving market and consumer demands, we are dedicated to adapting and addressing these shifts in a responsible manner. Still, we recognize that we can further enhance our contribution to our customers’ and other stakeholders’ sustainability goals by exploring lower-carbon options, such as green aluminum for our Grids, recycled plastic in our Bins, and increased density and efficiency within the AutoStore system. These matters are discussed later in these statements. We are also committed to continually improving how we assess and address human rights for workers throughout our value chain and business conduct, ensuring our practices align with the highest ethical standards. These important topics remain an ongoing focus, and we are dedicated to continuing these discussions and even advancing our efforts in the future. Benefits and opportunities AutoStore’s strengths in the environmental, social, and governance area is evident in the performance of our existing systems in warehouses today, which demonstrate that1: – By optimizing vertical space, the AutoStore system reduces the physical footprint needed for storage compared to traditional warehouses. AutoStore’s high density storage can enable a reduction in storage footprint up to 75% for the composite (compared to a traditional warehouse) – The AutoStore system uses minimal energy – our Robots can carry out their tasks in the dark. The dense storage system also reduces the amount of concrete required for constructing bigger warehouses – More precise inventory management is expected with automation, which many believe helps reduce excess stock and unnecessary waste – AutoStore's modular design incorporates durable materials such as aluminum, ensuring a long lifespan and facilitating easy upgrades and maintenance. This extended longevity can reduce the need for frequent replacement or new equipment, contributing to resource efficiency – By automating heavy lifting and repetitive tasks, our 1 An Economic Impact Study by Forrester commissioned by AutoStore, including customer case studies. 1 An Economic Impact Study by Forrester commissioned by AutoStore, including customer case studies. systems are perceived to create a safer and more ergonomic workplace for warehouse employees 29 Contents Developing our ESG focus Over the past years, AutoStore has implemented several About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices measures to enhance environmental performance, improve transparency, and align with global ESG standards. As a member of the UN Global Compact, we are dedicated to aligning our operations with internationally recognized sustainability principles. Furthermore, by signing The Guide Against Greenwashing, we have committed to aim at maintaining transparency and accountability in our environmental reporting. From a reporting perspective, since 2021, we have developed our focus on ESG efforts by reporting in accordance with Global Reporting Initiative (GRI) standards. Climate reporting has adhered to the GHG Protocol, reflecting our focus on transparent emissions reporting. This year, we prioritized aligning our efforts with CSRD requirements, further strengthening our sustainability reporting. This effort has involved restructuring of roles and responsibilities, allocation of additional resources to our team, and expanding training programs to enhance understanding and an effective implementation of the new reporting standard. This process has included active participation from members of the Board, executive management, and the internal ESG teams and contributors to the reporting process. Targets not yet adopted AutoStore has not yet adopted any ESG related targets and these statements are reflected accordingly. We approach ESG commitments and expectations with deliberate care, prioritizing thoughtful and informed decision-making. In 2024, the decision was made to prioritize the development of a comprehensive ESG decarbonization roadmap in 2025. This initiative will outline the specific steps needed to establish actionable targets in key areas, including carbon emission reduction and circularity. By laying this groundwork and defining scenarios of potential action plans, AutoStore aims to ensure meaningful and sustainable progress in today’s ESG landscape. The roadmap will be assessed and reviewed by the executive management team and the Board of Directors in 2025, with subsequent action plans depending on the outcomes of this evaluation. 30 Contents General Basis for Preparation About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices AutoStore's consolidated Sustainability Statements are prepared in accordance with the requirements of the Norwegian Accounting Act Sections 2-3 and 2-4, including the European Sustainability Reporting Standards (ESRS). They have the same scope as the consolidated Financial Statements and cover the reporting period from January 1, 2024 to December 31, 2024, and include AutoStore Holdings Ltd. and its subsidiaries. These statements cover AutoStore's upstream and downstream value chain, and our value chain definition used herein in these statements is presented here. This definition has guided our approach to conducting the double materiality assessment. In sections where policies, actions, and metrics reported are related to the upstream and/or downstream value chain, this is detailed in the relevant topical chapter. AutoStore has determined that it is not relevant to use the option to omit certain information related to disclosing information for these purposes. Estimates and outcome uncertainties AutoStore applies the same time horizon as defined in ESRS 1 when assessing impacts, risks, and opportunities: – Short-term: 0-1 year – Medium-term: 1-5 years – Long-term: 5+ years These time horizons are assessed to be relevant and applicable to AutoStore’s business and operations, and align with our overall objectives. The relevant chapters in our Sustainability Statements indicate where applicable data, including upstream and downstream value chain data, has been estimated. Specific considerations relating to environmental data are presented here. 31 Contents Changes from last year’s sustainability reporting In 2023, AutoStore’s annual ESG report was prepared in About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices accordance with the GRI standards. The team prepared for the upcoming new reporting requirements following CSRD and ESRS but did not report in compliance with them for 2023. The content and the structure of this year’s report have changed considerably and have been restructured to align with ESRS following the new reporting requirements for 2024. The changes include a reassessed and updated double materiality assessment and corresponding assessments of impacts, risks, and opportunities, as well as additional reporting on quantitative and qualitative data. Due to this year’s changes in reporting requirements as well as more focused structures and processes, most ESRS metrics do not include a comparative year. 2024 metrics will provide a clear benchmark for measuring progress and ensuring alignment with evolving standards going forward, and AutoStore has designated 2024 as the base year for the greenhouse gas (GHG) reporting. The five material ESRS topics are unchanged from 2023 to How to read the Sustainability Statements These statements represent AutoStore’s first sustainability report prepared in accordance with CSRD and ESRS. General The first chapter covers the basis for preparation, along with our governance framework, business model and strategy, and double materiality assessment on ESG related matters. Topics that are broadly relevant and addressed in topical chapters are summarized here to provide a comprehensive overview of our overall ESG related efforts. ESG These statements are further structured by topical chapters on environment, social, and governance in accordance with ESRS, which outline our material topics and identified material impacts, risks, and opportunities, together with related ‘approach and policies’, ‘connection to strategy and business model’ and ‘actions and initiatives’ on these matters. Disclosure requirements in ESRS covered by AutoStore’s Sustainability Statements are detailed in the ESRS index, with references indicating where the various ESRS disclosure requirements can be found. Non-material topics are not included. 2024. The 2023 reporting included the entity-specific material topic of cybersecurity, which was assessed as not material in 2024. The double materiality assessment builds on the 2023 process but the identified impacts, risks, and opportunities have been significantly adjusted and expanded in 2024 upon following a more thorough analysis and evaluation. We provide further explanation of the changes from the previous year here. Reporting frameworks The topical disclosures under environmental, social, and governance are included according to the results from the double materiality assessment defined in ESRS 1. The GHG data is prepared according to the GHG Protocol. The Taxonomy Report is prepared in accordance with the EU Taxonomy for Sustainable Activities. Besides the aforementioned reporting standards and frameworks, AutoStore has not incorporated additional disclosures stemming from other legislation or standard-setting bodies. External review AutoStore did not seek external assurance for the ESG report in 2023 but followed requirements for external assurance in 2024. 32 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices Governance To secure healthy and effective corporate governance, AutoStore has adopted a set of governing documents that set out principles for conducting its business. This is outlined in the Corporate Governance Policy and applies to the AutoStore group. The following section should be read in conjunction with the annual Corporate Governance Statement detailing the overall corporate governance structure in AutoStore. This section outlines the specific governance structures in AutoStore put in place to monitor, manage, and oversee ESG specific matters, and discusses the relevant function’s responsibilities within the ESG area. As part of the new reporting requirements following CSRD effective from 2024, the governance structure on ESG related matters were revised this year, detailing the roles and responsibilities more clearly and formally by updating relevant policies and instructions. The figure presented to the right shows the governing structure of AutoStore on ESG related matters. 33 Contents Supervisory, management, and administrative bodies Board of Directors About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices AutoStore’s Board of Directors holds ultimate responsibility for safeguarding the company’s operations and shall keep itself informed of the financial position of the group and ensure that its asset management is subject to satisfactory controls. For more information on the Board’s general corporate responsibilities, read more in our Corporate Governance Report. The Board of Directors holds comprehensive responsibility for AutoStore’s ESG practices, serving as the company’s ultimate supervisory body. Their responsibility encompasses guiding and supervising AutoStore’s ESG efforts, ensuring that significant impacts, risks, and opportunities are effectively managed. The company’s objectives, strategy, and risk profiles, including ESG matters, shall be evaluated annually by the Board of Directors. The Board has mandated the Audit Committee with the principal role of supervising and monitoring ESG related matters in the group. The Board of Directors comprises eight members, 38% of whom are women. The parent company is incorporated in Bermuda and operates under Bermudian legislation, but AutoStore is committed to adhering to Norwegian legislation on this matter, which includes achieving a minimum of 40% female representation on the Board. 38% of the members are independent. Expertise and skills The Board’s expertise spans important ESG areas, enabling informed discussion and decision-making on material topics such as climate action, ethical business practices, and stakeholder engagement. Several members of the Board hold or have held directorships in other publicly listed companies subject to similar ESG reporting requirements as AutoStore. Notably, these roles include companies with advanced ESG practices that have established and adopted specific, time-bound targets, reflecting members of the Board’s experience in evaluating and approving ESG related initiatives. This collective expertise is seen as important in addressing ESG matters effectively within AutoStore's boardroom. Moreover, AutoStore’s Board of Directors bring extensive experience in strategic, industrial, and operational leadership across multiple sectors. This breadth of expertise encompasses key areas such as social responsibility and ethical business conduct, ensuring a well-rounded approach to governance and decision-making. The Board of Directors has included resources with expertise on ESG matters for discussions both at the Board level and within AutoStore’s internal ESG teams, ensuring the necessary competence and experience for relevant discussions. Additionally, all members of the Audit Committee completed training on CSRD during 2024, further enhancing their capabilities to oversee ESG related responsibilities, specifically related to reporting. Incentives and targets AutoStore does not currently have sustainability-related ESG related topics and discussions in 2024 at the Board of Directors – The Board of Directors mandated the Audit Committee the principal role of supervising and monitoring on ESG related matters in the group, including the oversight of management and preparation of the new reporting requirements following CSRD in 2024 – The Board advanced several ESG initiatives, with a key priority being the approval of 2025 as the dedicated year for developing a comprehensive ESG decarbonization roadmap. This initiative will outline the specific steps needed to establish actionable targets in key areas, including carbon emission reduction and circularity. The internal working group will present the project's outcomes to the Board in 2025, with subsequent action plans depending on the outcomes of this evaluation performance incentives in the Board of Directors or the executive management team’s incentive schemes. This also includes performance incentives on GHG reduction targets, as this has not yet been defined. 34 Contents Board of Directors About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices Jim C. Carlisle Co-chair Director of AutoStore since: 2021 Nationality: U.S. Hege Skryseth Board member Director of AutoStore since: 2021 Nationality: Norwegian Independent Sumer Juneja Board member Director of AutoStore since: 2023 Nationality: U.S. Vikas J. Parekh Co-chair Director of AutoStore since: 2023 Nationality: U.S. Kjersti Wiklund Board member Director of AutoStore since: 2023 Nationality: Norwegian Independent Viveka Ekberg Board member Director of AutoStore since: 2021 Nationality: Swedish Independent Andreas Hansson Board member Director of AutoStore since: 2021 Nationality: Swedish, British Michael K. Kaczmarek Board member Director of AutoStore since: 2021 Nationality: U.S. Biographies 35 Contents Supervisory, management, and administrative bodies Audit Committee ESG related topics and discussions in 2024 in the Audit Committee – The Audit Committee participated in specific Board training on reporting requirements following CSRD, adding expertise to the company’s regulatory compliance and ESG reporting efforts – CSRD reporting readiness was presented to and discussed in the Audit Committee early 2024, and was a natural continuance of the work initiated in 2023. Furthermore, reporting gaps from 2023 were presented and discussed – together with a plan of how to close these gaps for the 2024 reporting – Management presented the structure of the internal ESG teams to handle the upcoming reporting requirements following CSRD. Additionally, the progress and plan on how to establish and implement sufficient governance structures and internal controls over ESG reporting was presented and discussed in several meetings – The double materiality process, relevant identified stakeholder perspectives, and concluded impacts, risks, and opportunities were presented and approved by the Audit Committee – Audit planning, progress, and review of CSRD attestation was presented and discussed quarterly About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices The Audit Committee is a sub-committee of the Board and ultimately prepares items for the Board to review and consider. The Audit Committee has been mandated with the principal role of supervising and monitoring ESG related matters in the group. This includes ensuring alignment with strategy and overseeing the management and preparation of new reporting requirements under CSRD for 2024. This mandate is outlined in the ‘Instructions for the Audit Committee’ of AutoStore. In general, the Audit Committee bears the responsibility of oversight of ESG related matters in AutoStore to align with the corporate strategy and that ESG related risks are adequately managed. Furthermore, the Committee oversees the development and implementation of ESG related policies and practices, ensuring they meet both regulatory requirements and stakeholder expectations. The Committee works closely with the executive management team to verify that ESG related disclosures are integrated into regulatory reporting where applicable and ensures the organization remains compliant with emerging legal and market expectations. Additionally, the Audit Committee assesses the internal controls and processes concerning ESG related data collection and reporting. This includes ensuring ESG related risks are integrated into the organization’s risk management framework. ESG related matters, and specifically the reporting requirements following CSRD, was a quarterly agenda item in the Audit Committee meetings throughout 2024, ensuring that the necessary structure, progress, competence, and skills needed were in place. The double materiality assessment process, including the approach, methodology, and concluded material impacts, risks, and opportunities as presented in these statements, was monitored by the Committee through quarterly updates. The conclusions following the double materiality assessment presented herein were ultimately approved by the Audit Committee. For more information on the impacts, risks, and opportunities, read more here. The identified impacts, risks, and opportunities presented in these statements will be discussed and monitored within the Audit Committee agenda for 2025 alongside the overall enterprise risk management process. This topic is discussed and assessed at least bi-annually in the Audit Committee. 36 Contents Supervisory, management, and administrative bodies Executive management AutoStore’s ESG teams About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices The Chief Executive Officer (CEO) and his executive management team are responsible for the day-to-day management of the company. The executive management team is mandated to develop and approve policies and procedures to ensure efficient and effective operations and communicate the values and vision of the company throughout the organization. This also includes relevant ESG policies. Within the ESG area specifically, the Chief People Officer (CPO) oversees the company's ESG strategy processes, including strategy related to target setting and accompanying actions. Furthermore, the CPO, together with the Chief Financial Officer (CFO), collaborates with other members of the executive management team to ensure that ESG priorities are factored into strategy execution, including how resources are allocated to sustainability initiatives. The CFO is responsible for enterprise risk management, including incorporating ESG risks into the broader enterprise risk management framework, ensuring that they are systematically monitored and addressed. Additionally, the CFO is responsible for ensuring that ESG related initiatives are aligned with the group’s financial objectives. In terms of reporting, the CFO oversees the accuracy and integrity of ESG related disclosures, ensuring the reporting is within compliance with reporting requirements following CSRD. For more information on gender and diversity ratios on the executive management team, read more here. Representation of employees AutoStore conducts elections of employee representatives. The role of an employee representative involves representing the views and concerns of AutoStore’s employees, facilitating communication between staff and management, and providing input to human resources on matters affecting AutoStore’s work environment. AutoStore wants to embed sustainability into its daily operations. To foster this, we aim for a lean sustainability department, focusing instead on integrating ESG related expertise across all teams. Our goal is to make ESG, and particularly circularity, a natural part of our product research, development, and decision-making processes. AutoStore’s ESG work is structured in two collaborative teams within the People and Finance departments, led by the CPO and CFO, respectively. This restructuring was set in place in 2024. The teams collaborate and work closely together while still ensuring segregation of duties in transparent and consistent reporting on ESG related matters. The double materiality process was conducted with involvement from both teams, with the engagement of relevant stakeholders as described later in this chapter. To ensure necessary competence and skills were in place to meet the needs of the reporting requirements following CSRD, both teams have been participating in relevant training and courses throughout 2024. In addition, external consultants have been included in this year’s ESG work as technical experts and sparring partners where needed. Relevant internal stakeholders have been included to ensure their topical expertise has been taken into account in the the double materiality assessment process and the overall reporting on numerical and narrative data points. 37 Contents Executive management Mats Hovland Vikse Chief Executive Officer Role since: January 2023 Nationality: Norwegian Jenny Sveen Hovda General Counsel Role since: February 2022 Nationality: Norwegian Parth Joshi Chief Product Officer Role since: June 2024 Nationality: U.S. Paul Harrison Chief Financial Officer Role since: October 2023 Nationality: British Carlos Fernandez Chief Solutions Officer Role since: June 2024 Nationality: Spanish Keith White Chief Revenue Officer Role since: November 2024 Nationality: U.S. Israel Losada Salvador Chief Operating Officer Role since: June 2022 Nationality: Spanish and Norwegian Anette Matre Chief People Officer Role since: July 2021 Nationality: Norwegian Bendik Førre Chief Strategy Officer Role since: February 2023 Nationality: Norwegian About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices Biographies 38 Contents Risk management and internal control Risk management 1 Identification This step aims to recognize and describe risks that could either support or hinder AutoStore in achieving our objectives. This involves analyzing tangible and intangible risk sources, potential causes and events, threats, opportunities, vulnerabilities, capabilities, contextual changes, emerging indicators, asset value, consequences, information reliability, time factors, and biases or assumptions. 2 Analysis The objective is to understand the nature and characteristics of risks, including their level. It involves evaluating uncertainties, consequences, likelihood, and scenarios, together with factors like complexity, connectivity, time sensitivity, and the effectiveness of existing controls. 3 Evaluation The objective is to provide a basis for decisions by using the results of the risk analysis and risk criteria to determine the need for additional actions. This may result in deciding to take no further action, consider risk treatment options, conduct further analysis, or maintain existing controls. Decisions should take account of the wider context and the actual and perceived consequences to external and internal stakeholders. 4 Risk treatment The objective is to ensure risks are addressed and treated in line with acceptable criteria, balancing objectives against the costs, effort, or disadvantages of implementation. Risk treatment is an iterative process involving selecting and implementing treatment options, assessing effectiveness, determining risk acceptability, and, if necessary, taking further action, with each treated risk assigned to a responsible risk- owner for follow-up. 5 Monitoring and review The objective is to communicate risk management activities across the organization, support decision- making, and facilitate stakeholder engagement. Significant risks and those requiring treatment must be documented in AutoStore's risk register, with the status of treatment actions monitored and managed by the relevant line organizations. About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices Implementing effective risk management and internal control systems is essential to ensure AutoStore is protected against situations that could harm our reputation or financial standing. Risk management is an integral part of AutoStore’s business activities and decision-making processes, aiming to minimize adverse effects through sound business practices and strategic risk management. The Board of Directors oversees AutoStore’s system of risk management, reviewing key risks through annual updates. The Audit Committee supports the Board of Directors by ensuring effective corporate governance and internal control procedures are in place. Specific risk topics presented annually to the Board of Directors, including ESG risks, are subject to more frequent updates and review by the Audit Committee. The CFO directly reports to the Audit Committee on matters including risks, reporting, internal controls over reporting, and corresponding compliance aspects. This also includes the ESG related risk management process and monitoring of identified ESG related risks. Climate related risks are monitored and reported by the CPO to the Audit Committee. The frequency of such reporting is minimum bi-annually. In 2024, the Audit Committee monitored and approved the impacts, risks, and opportunities as outlined in this report, and will continue this monitoring and assessment in 2025 as part of the overall enterprise risk management process. AutoStore has established a systematic and uniform approach to risk management throughout the company, embedded in our Risk Management Policy. The policy details how risks shall be identified, assessed, mitigated, monitored, and reported according to AutoStore’s established risk tolerance. The process steps of our overall risk management system are outlined in the following table. For our double materiality assessment, including the identification of material ESG related risks, we utilized our overall risk management system. For more information on the risks identified on ESG related matters, read more here. 39 Contents Risk management and internal control Internal control About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices Implementing robust internal controls over sustainability reporting is important to AutoStore to ensure the accuracy, reliability, and transparency of reported information. New reporting requirements following CSRD in 2024 initiated extended focus on establishing processes and structures for reporting. The development of our internal controls over ESG reporting and associated activities was based on the COSO 2013 Internal Control- Integrated Framework. The internal controls of sustainability reporting (ICSR) framework are implemented through a risk-based and top-down approach, ensuring that AutoStore’s activities and management are subject to adequate control. More specifically, the establishment of internal controls over sustainability reporting included, but were not limited to: Governance structure and frameworks The process involved assigning clear roles and responsibilities across supervisory bodies, the executive management team, and administrative teams, ensuring board oversight, executive leadership, and sufficient internal competence and resources in the management, oversight, and development internally in AutoStore. These structural changes were enacted through policy and instruction updates and approvals in 2024. Risk assessment Although the process began in 2023, AutoStore reassessed its material impacts, risks, and opportunities in 2024. This year's process included additional stakeholder perspectives and internal assessments, with anticipated new and enhanced features in the coming years as we continue to advance in this area. Reporting and data collection and management To strengthen internal controls over sustainability reporting, we initially focused on understanding roles and responsibilities within our activities and developing more formalized processes for collecting key data points across relevant teams in the group. This included conducting workshops and assessments with reporting teams to ensure that the formalization, design, and implementation of these data gathering activities aligned well with each group’s responsibilities. Our focus this first year of reporting has been on identifying the most reliable and consistent data sources and methodologies. In 2024, AutoStore also introduced a new reporting system that manages data collection and supports relevant internal control functions for ESG reporting. We will continue developing and refining these processes and controls in 2025, with a focus on enhancing both quality and efficiency. Assurance The Sustainability Statements for 2024 have undergone external assurance by our auditor. 40 Contents Risk management and internal control Policies About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices AutoStore has established codes and policies relevant to most of our identified material topics. The following table illustrates how these topics are governed and identifies the corresponding material topics they apply to. Further descriptions of these policies can be found in the relevant topical chapters. The table outlines the main chapters they are discussed by referencing related page numbers. Each policy is revised annually by the designated responsible party to ensure ongoing relevance and effectiveness. These policies are publicly available on our website. Furthermore, a dedicated section on AutoStore’s intranet is easily accessible to all AutoStore employees, focusing on corporate governance and business conduct. This page prominently features key policy documents to ensure that all employees are informed and have easy access to relevant information of the company's standards and practices. This platform serves as a central hub for both global information and specific, region-based content, ensuring employees have accessible, relevant information tailored to their location. Codes and policies Responsible party Revision Scope and value chain position Material topics Pages Code of Conduct CEO Annual AutoStore group – cross value chain All material topics covered in these statements 148 Human Resources Policy CPO Annual AutoStore group – cross value chain Own Workforce 109 Environment and Climate Policy CPO Annual AutoStore group – cross value chain Climate Change Resource Use and Circular Economy 65, 83 Human Rights Policy CPO Annual AutoStore group – cross value chain Own Workforce Workers in the Value Chain 109 Anti-Corruption Policy CPO Annual AutoStore group – cross value chain Business Conduct Own Workforce Workers in the Value Chain 148 Whistleblowing and Investigation Policy CPO Annual AutoStore group – cross value chain Business Conduct Own Workforce Workers in the Value Chain 148 Supply Chain Business Ethics Code COO Annual Suppliers Climate Change Resource Use and Circular Economy Workers in the Value Chain Business Conduct 136 Click on a policy to navigate directly to it on our website. 41 Contents For more information on the AutoStore system, our value proposition, significant markets and end user groups, and our corporate strategy, read more here. Cube technology Our business mo del revolves around providing an automated storage and retrieval system (AS/RS) that maximizes the use of space within warehouses. At the core of AutoStore’s offering is the cube storage concept, where goods are stored in a compact, vertical Grid and retrieved by Robots. These Robots move across the top of the cube, lifting Bins to access products stored beneath them, which enables a dense storage structure. This approach allows an AutoStore system to store up to four times more products in the same warehouse footprint as compared to traditional shelving or racking systems. AutoStore’s technology is modular, which makes it adaptable to varying warehouse sizes and allows customers to expand the system incrementally as their needs grow. Our system's flexibility supports scalability, which is key to our business model, enabling customers to optimize their storage capacity without needing to build new facilities. The modular, customizable nature of AutoStore’s solution has proven valuable for customers facing fluctuating storage needs, as they can adjust the number of Robots or storage Bins without reconfiguring the entire warehouse. Standardization AutoStore’s automation solutions cater to a variety of industries, including retail, e-commerce, pharmaceuticals, manufacturing, and third-party logistics offering tailored solutions for different storage and retrieval needs. AutoStore also supports high-speed, accurate order fulfillment, which is particularly valuable for industries with high transaction volumes and rapid order processing requirements. Differentiated solutions AutoStore relies on a network of distribution partners implementing the AutoStore systems in end user’s warehouses and adapting the solution to specific needs. By working with our distribution partners, we can scale efficiently across global markets and ensure that installations meet the unique requirements of each end user. This partnership-based model allows AutoStore to focus on developing and refining its core technology, while partners handle installation, integration, and ongoing support. AutoStore's revenue model includes both initial sales and long-term service agreements, ensuring ongoing revenue from system maintenance, upgrades, and support. The distribution partners are supported by AutoStore’s in-house partner sales managers (PSMs), business development managers (BDMs), and global account managers (GAMs). Partner distribution model Read more about AutoStore’s significant markets. Read more about AutoStore’s partner distribution model. About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices Business Model 42 Contents Strategy About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices AutoStore is about more than warehousing – it is about how we approach the finite time and space we have. By providing solutions that can help us to store, share, and move things in a smaller space and with greater speed, we want to contribute to developing a new approach to better utilizing our environment. With our vision, mission, and values in mind, we aim at capturing white space in an immature market and grow through new applications and adjacencies. AutoStore targets significant growth and wider potential beyond the walls of the cube and the walls of the warehouse. The cube is at the core of our strategy and the center of everything we build. Our aspiration is standardization of automation with and beyond the cube and outgrowing the market. Our strategy is thus to optimize our current go-to- market model and improving the cube to increase our value propositions. Read more about our overall corporate strategic direction. Our strategic direction from an ESG perspective is discussed further in this section. The elements of AutoStore’s strategy that relate to or impact ESG matters, including the main challenges ahead, critical solutions, or projects to be put in place, are introduced in this chapter, and further discussed in the topical chapters of this report. AutoStore has a solid starting point for sustainability – we supply a product with the potential to offer inherent benefits to the environment and workers through space- saving, energy efficiency, long product lifespan, and features that support a positive warehouse work environment. AutoStore’s sustainability strategy To accelerate the transition to space- and energy-efficient warehouse solutions that are preferred by warehouse workers. To work towards this ambition, we focus on areas where we see the greatest impacts can be made. This assessment results from our conducted double materiality assessment, stakeholder dialogue, and thorough strategy processes. AutoStore’s three main sustainability focus areas have been identified as carbon, circularity, and social and governance. Through these focus areas, we aim to reduce our environmental impact and contribute to the reduction of our customers’ environmental impact by further improving the circular value propositions of our products and reducing GHG emissions. This work is a continuous process. 43 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices To help us reach our strategic pillars, from an ESG perspective, the strategic direction and key enablers include: 1 A results-oriented organization living the Founder’s Mentality We are proud of our culture in AutoStore and see ourselves as ‘One AutoStore’. Our corporate culture is a key enabler and the foundation of our strategy, aiming at driving further growth and develop our offerings. Embracing the Founder’s Mentality encourages accountability, innovation, and long-term thinking, which we deem foundational to strong ESG performance. By fostering a culture of ownership, we believe that our employees are more likely to prioritize ethical practices, transparency, and community well-being. This mentality supports governance goals through increased responsibility, ethical conduct, and alignment with AutoStore’s values. 2 A customer-centric partner-based go-to- market model Our partner-based go-to-market model enables us to efficiently scale globally, expand our sales reach, and establish a continually growing base of installed systems. We view our distribution partner relationships as vital to our success, fostering close, collaborative ties where distribution partners are both supported and challenged to drive impactful sales and service initiatives. As a key part of our downstream value chain, we prioritize building partnerships that align with our ESG values. This commitment includes fostering sustainable practices and positive social impacts throughout our distribution partner network. By partnering with ethically responsible organizations, we aim at ensuring that products and services reflect environmental sustainability, fair labor practices, and community support. 3 Product development with fast time to market and customer-centricity Innovation remains core to AutoStore’s DNA. We 601.4 USD million continuously invest in research and development to refine our robotic technology and improve its software capabilities, staying at the forefront of warehouse automation innovation. Our aim is that innovative solutions and additional cube capabilities include sustainable product design, resource efficiency, and reduced environmental impact with our customers in mind. End users of the AutoStore system increasingly expect sustainable solutions, and by prioritizing ESG considerations during product development, we can design products that meet customer requirements while minimizing waste, utilizing eco-friendly materials, and promoting energy efficiency. 4 Efficient operations and value chain set-up Streamlining operations can reduce waste, minimize carbon emissions, and optimize resource use, making our operations more sustainable. An efficient value chain also improves labor practices by promoting fair wages, safe working conditions, and ethical sourcing. We believe focusing on ESG within the value chain will lead to a resilient, sustainable, and ethically responsible supply network, strengthening governance through transparent and compliant operations. 5 Continuously optimize operating model We want to consistently maintain a fit-for-purpose organization, with the right structure, capabilities, and processes to efficiently execute our strategy. We aim at incorporating ESG principles into our operations to drive sustainable growth, create positive societal impact, and uphold the highest standards of governance and ethical responsibility. Performance in 2024 AutoStore reports one segment in our consolidated financial statements, the AutoStore system. We deem this relevant also for the definition of ESRS sectors. Turnover 44 Contents Double Materiality Assessment About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices Background and changes from 2023 AutoStore conducted its first double materiality assessment in 2023. Building on the previous year’s evaluation, we reassessed our approach and material topics in 2024. During this review, the AutoStore ESG teams identified the need to enhance assessments on impacts, risks, and opportunities. As a result, this area has been prioritized in this year’s assessment. The stakeholder interactions in 2023 were assessed to be of high quality and suitable for forming part of the foundation for the assessments for the current year. Additionally, AutoStore continued the work on a comprehensive ESG strategy project this year, involving extensive stakeholder engagement, which we built upon in this year’s process. Furthermore, several groups and departments engage continuously with stakeholders throughout the year, providing valuable insights that were incorporated into our process for 2024. An exception in 2023 was the entity-specific topic of cybersecurity, which was deemed material due to strong stakeholder sentiment from select sources and its significance as a focus area for AutoStore. However, following the reassessment for 2024, cybersecurity will remain a monitored topic but is no longer classified as material to AutoStore’s sustainability activities. Methodology and assumptions Our approach to the double materiality assessment Impact materiality Inside-out process follows the principles as set forth by the EU’s CSRD and ESRS adopted in July 2023. This approach requires companies to evaluate and disclose sustainability matters from two distinct perspectives. As a basis for determining the disclosures in our Impact sustainability statement, an ESG related matter was deemed material for AutoStore out of one or both of the following perspectives: Impact materiality AutoStore’s impact on people and/or the environment, and/or Financial materiality ESG related matters that trigger effects on AutoStore’s cash flows, development, performance, position, cost of capital, or access to finance. Planet and society Financial materiality The double materiality process involved assessments Outside-in Risks and opportunities across the entire group, evaluating impacts, risks, and opportunities without excluding any specific locations or subsidiaries. 45 Contents Our approach About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices Double materiality assessment section This section on double materiality assessment outlines our methodology, approach, and process, incorporating key inputs such as stakeholder dialogue and value chain definition. These inputs are essential to the assessment. Finally, the section presents the identified impacts, risks, and opportunities. AutoStore has taken a comprehensive approach to identifying potential material ESG topics and impacts, risks, and opportunities. The assessment's long list builds on analyses from the process in 2023 and incorporates insights from EFRAG’s materiality assessment implementation guidance. Additionally, we have considered input from stakeholder dialogues this year and relevant reporting frameworks, including the company’s carbon accounting report. The identification of potential topics was further informed Process steps 2024 1 Review and assessment of the double materiality process from 2023 2 Evaluation of our business model and strategy 3 Evaluation of our stakeholders and definition of value chain and its scope 4 Identification of impacts, risks, and opportunities within topical expert groups 5 Assessment of impacts and financial risks and opportunities based on defined criteria 6 Prioritization of potential material ESG related topics, alongside reassessment and validation with relevant stakeholders and consolidation of impacts, risks, and opportunities 7 Final consolidated material impacts, risks, and opportunities 8 Approval of impacts, risks, and opportunities in the Audit Committee by value chain analysis and due diligence, screening of activities and assets, and the evaluation of potential impacts that may arise from our strategy and business model. When identifying risks and opportunities that could reasonably be expected to affect the company financially, we also considered the existence of dependencies on natural and social resources. The identification of potential impacts, risks, and opportunities for the respective disaggregated topics may be subject to factors such as specific activities, business relationships, and geographic locations that could lead to increased risk of adverse impacts. More information on the identification of disaggregated impacts, risks, and opportunities, as well as how these topics are addressed, can be found in the respective chapters for material topics in this report. The identified potential impacts, risks, and opportunities were prioritized and assessed based on their impact materiality and financial materiality. 46 Contents Impact materiality The assessment focused on how AutoStore and our operations impact the environment, society, and human rights, directly or indirectly. An ESG topic was considered material if AutoStore is associated with actual or potential, negative or positive, impacts on the environment or the people, whether in the short, medium, or long-term perspective. Scoring The financial risks and opportunities were scored based on the following criteria, in line with ESRS, and based on defined thresholds as set forth in AutoStore’s overall enterprise risk management methodology: Magnitude of financial effect. Risks were scored on a scale from 1 to 5, where 1 represents a negligible financial loss and 5 represents a serious direct financial loss (>20% of turnover or persistent effect on share price). Opportunities were scored on a scale from 1 to 5, from very low (<5% of turnover) to very high (>20% of turnover). Likelihood of financial effect. Likelihood was scored on a scale from 1 to 5, from very low (<20%) to almost certain (>80%). Scoring The impacts were scored based on the following criteria, in line with ESRS: Severity of the impact. Negative impacts were scored based on a combination of scale, scope, irremediability, and likelihood. Positive impacts were scored based on a combination of scale, scope, and likelihood. Scale, scope, and irremediability were all scored on a scale from 1 to 5, where 1 was the minimal impact and 5 was the absolute impact. Likelihood of the impact. Likelihood of impact occurring included a range from rare occurrences (<10%) to actual events (100%). Financial materiality The assessment evaluated how AutoStore and our operations are impacted by the environment, society, and human rights. An ESG topic was deemed material if it triggers financial effects on the company, meaning it creates risks or opportunities that could affect future cash flows and, consequently, the value of AutoStore in the short, medium, or long-term perspective. These financial effects may not be captured in the current financial reporting but are important for understanding future impacts. For each risk and opportunity identified, we analyzed the direct or indirect ownership and the negative or positive financial effect of the risk or opportunity, respectively. Threshold The product of both the magnitude of the financial risk or opportunity and the likelihood of it occurring determined the financial impact score. Financial impact score (risk or opportunity) = Magnitude x Likelihood. Threshold The product of both the severity of the impact and the likelihood of it occurring determined the impact score. Impact score (impact) = Severity x Likelihood. About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 47 Contents Stakeholder dialogue AutoStore actively engages with key stakeholders to foster About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices a shared understanding of its business model, ensuring alignment, collaboration, and responsiveness to evolving needs and expectations. Stakeholder interaction helps us better understand and anticipate valuable insights and feedback, informing better decision-making and strategy development. Ultimately, we acknowledge that engaging with stakeholders is key in building long-term success. The double materiality assessment process in AutoStore involved engaging a diverse group of stakeholders to align expectations and gain insights into potential material topics related to the company’s operations, value chain, and significance to stakeholders. This dialogue, combined with an analysis of our value chain, industry and peer trends, and regulatory frameworks, identified material impacts, risks, and opportunities. Stakeholder interactions were conducted through one-on-one interviews as well as group workshops with both internal and external stakeholders. The stakeholder groups involved in the assessment are detailed below. Initial stakeholder interaction was first conducted through one-on-one interviews with 17 stakeholders, of which nine were internal, seven were external, and one was a member of the Board of Directors. In addition, internal workshops with relevant stakeholders were conducted on impact materiality and financial materiality. These workshops were attended by AutoStore’s internal ESG teams and an external consultant with relevant topical experts supporting the overall process. In addition, as part of the ESG strategy development process and other relevant ESG projects in 2024, additional stakeholders were included in this process. These insights have been taken into account for the purpose of the double materiality assessment as well. Key stakeholders AutoStore aims to further increase the scope of consulted stakeholders going forward. More information on our engagement with key stakeholders, how it is organized, and our responses of such interactions follows on the next page. 48 Contents Employees Partners and customers Suppliers Investors / shareholders Governments and civil society Special interest groups Stakeholder group AutoStore’s employees are primary stakeholders who both directly affect and are directly affected by AutoStore’s internal policies and activities. AutoStore’s customers directly affect the company economically, and customer expectations guide AutoStore’s sustainability priorities. Suppliers are affected by AutoStore directly in financial terms, and indirectly by the company’s focus on responsible business practices and resulting expectations on suppliers. AutoStore’s investors are primary stakeholders and directly affect the company’s priorities and strategic direction. Governments and regulatory authorities have a direct and indirect impact on AutoStore and its operating conditions. Local communities are indirectly affected by the company’s activities through job creation, tax payments, and environmental impact. Initiatives and special interest groups have a direct and indirect impact on AutoStore and its operating conditions through their expectations and requirements. Arena – Regular all-employee meetings – Annual performance review – Internal channels, including intranet – Training and coaching – Email – Working environment committee meetings – Employee surveys – Huddles – Newsletters – Training – Website – Quarterly business reviews – Conferences – Regular direct dialogue – Supply chain management through supplier evaluation forms and annual audits of critical suppliers – Email – Reporting – Board meetings – Direct communication – Investor updates and quarterly reports – Investor presentations – Stock exchange / press releases – Roadshows – Written and direct communication – Email – Answering surveys and interviews focusing on sustainability – Website update, review of internal guidelines – Various projects participation Theme – Comply with laws and regulations in terms of ethical business double materiality operations, human rights, and anti- corruption – Diversity, equity, and inclusion – Workplace safety, health, and well-being, including mental health – Development and career opportunities – Involvement of employees in climate and sustainability strategy process – Risk assessments related to climate change, operational, and reputational risks – Climate – Greenhouse gas emissions – Energy use – Market conditions – Employee well-being and safety – Future business needs and deliveries – Responsible and ethical business conduct and practice – Human rights – Financial results – Innovation – Annual report and governing documents relating to sustainability information – Regulatory framework – Focus on financial support from government for Norwegian export companies and capital-demanding start- ups. Need for education and high-competence workforce in Norway – Products and value in society – Employer branding – Responsible business, openness, trust, selected sustainability issues, UN SDGs How we responded – Double materiality assessment – DEI strategy process – Sustainability strategy process – Unconscious bias training – Inclusive recruitment training – “Make diversity your competitive edge” diversity training – Walking on Earth (employee well-being program) – Double materiality assessment – Climate accounting with focus on scope 3 – Signed Code of Conduct – Sustainability strategy process – Double materiality assessment – Issued Supply Chain Business Ethics Code to be signed by suppliers – Project group on the Norwegian Transparency Act – Sustainability strategy process – Double materiality assessment – ESG reporting in line with CSRD – Sustainability strategy process – Double materiality assessment – Sustainability strategy process – Implementing UN Global Compact principles – Implemented the Guide Against Greenwashing About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 49 Contents Value chain About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 50 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices Upstream BOM suppliers The upstream value chain for AutoStore begins with the sourcing of raw materials and components of the AutoStore system, hereunder materials to produce and assemble the modules – Grids, Bins, Robots, Ports, and Controllers. Most materials and components are sourced from several suppliers, and we work closely with a network of trusted suppliers to ensure the raw materials meet the required quality. Our key suppliers are the suppliers delivering aluminum for our Grids, plastic for our Bins, and the suppliers of materials and customized components necessary for production and assembly of the remaining modules in the AutoStore system. Key suppliers also include transportation suppliers. We define these suppliers as ‘bill-of-materials’ (BOM) suppliers within our value chain definition. This definition is also applied throughout our double materiality process and these statements. Beyond these suppliers, our upstream supply chain extends to the extraction and processing of raw materials. For the purpose of assessments made in this first year of reporting in accordance with CSRD, the main focus of assessments relates to suppliers AutoStore is in direct contact with, hereunder referred to as ‘direct suppliers’. While considerations relating to suppliers beyond tier 1 also have been assessed, there is limited transparency in this part of our upstream value chain, and AutoStore will continue developing our understanding of our upstream value chain in 2025. AutoStore is currently mapping out the completeness of the full list of materials for all our components. More information and an overview of the main materials and components used for producing and assembling the AutoStore system can be found in our discussion about resource inflows. Grid and Bins parts in the AutoStore system are directly produced and shipped from our suppliers to the end user of the system for installation by our distribution partners. Bins suppliers arranges the transportation from their production sites, while AutoStore mostly arranges transportation of the Grids. Furthermore, material and components for our Robots, Ports, and Controllers are shipped from our suppliers to our production facilities in Poland and Thailand for internal assembly. The transport for these shipments is coordinated and handled by the suppliers via third-party transport service providers. Non-BOM suppliers Additionally, our upstream value chain includes suppliers not directly linked to the production of the AutoStore system. These are defined as ‘non-bill-of-materials’ (non- BOM) suppliers. Non-BOM suppliers include, but are not limited to, software services, providers of IT equipment, and consulting expertise that support the company's operations, innovation, and digital infrastructure. 51 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices Own operations Our own operations begin with the product and research and development (R&D) phase, where our engineers create and refine the technology behind our cube storage system, ensuring AutoStore meets customer needs and market demands. Furthermore, our own operations include the assembly of components into the fully integrated AutoStore system in our production facilities in Poland and Thailand. This includes the internal assembly of Robots, Ports, and Controllers. Transportation, often via planes, boats, and trucks, of Robots, Ports, and Controllers, as well as spare parts, are dispatched from AutoStore’s production facilities, where AutoStore arranges transportation directly to the end user’s site. The AutoStore system is sold to a global network of distribution partners. This encompasses the Grid, Robots, Ports, Controllers, software, and spare parts. In addition to the sale of the AutoStore system, AutoStore has a royalty agreement with bin production partners. Our own workforce is responsible for quality control, ensuring that all systems meet the required performance standards before they are shipped to the end user’s site. Customer and service support is another important aspect of our own operations, where we provide training, technical assistance, and troubleshooting if needed, particularly support towards our distribution partners. AutoStore also monitors the performance of our running systems, collecting data that is used to drive continuous improvements and innovations. Through this ongoing feedback loop, AutoStore ensures that our solutions stay at the forefront of automation technology. These functions are supported by teams in sales and marketing, procurement and supplier management, strategy, HR, HSE (health, safety, and working environment), finance, legal, and IT. These functions ensure effective coordination, risk management, and compliance across the supply chain, providing the critical support needed to maintain operational efficiency, drive strategic goals, and enable seamless business continuity. 52 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices Downstream In our downstream value chain, our 23 distribution partners are our customers. They are responsible for installing, servicing, and maintaining the AutoStore system at the end users’ site. AutoStore’s own workforce provides training and support to our distribution partners, enabling them to effectively assist customers and maintain system functionality. We work closely with our distribution partners to ensure they adhere to quality standards throughout the installation and maintenance processes. Distribution partners also provide valuable feedback to AutoStore, helping to identify areas for improvement and new opportunities for innovation. The downstream value chain also involves regular monitoring and upgrading of systems to meet changing customer needs and technological advancements. AutoStore’s close collaboration with its distribution partners is fundamental to our business model, ensuring end-user satisfaction by serving as the primary point of contact for those using the AutoStore system. We prioritize that our distribution partners are well-equipped with the tools, knowledge, and resources to support customers long after installation. Current and expected benefits The AutoStore system enhances energy efficiency, durability, space-saving solutions, and long product lifespans in its installations. Ongoing services, such as software updates, spare parts supply, repair, and leased asset management, ensure long-term value for end users worldwide. AutoStore’s automation solutions cater to a variety of industries and end users of the system, including retail, e-commerce, pharmaceuticals, manufacturing, and third-party logistics offering tailored solutions for different storage and retrieval needs. 53 Contents Conclusion on Double Materiality Assessment Brief descriptions of our identified material impacts, risks, Topics deemed not material All relevant topics within ESRS were evaluated as part of the double materiality assessment, with some determined to be non-material to AutoStore. Below follows a short description of the main reasons these were not included as material topics following no identified material impacts, risks, or opportunities. These topics will be monitored by AutoStore going forward. About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices and opportunities are presented on the following pages. At the same time, more detailed descriptions and related actions and initiatives can be found in the topical sections following in the subsequent chapters under environment, social, and governance. ESRS E2 Pollution Our GHG emissions reporting indicates that pollution from our operations and value chain is not material. However, we acknowledge pollution associated with transportation and the production of aluminum and plastics within our value chain. While this pollution is not significant compared to the GHG emissions from these processes, it is directly linked to ESRS E1, which we deem material and subsequently report on in these statements. ESRS E3 Water and marine resources While water usage could become material in relation to the cooling of data servers, this direct impact is deemed minimal as we rent nearly all servers. We furthermore acknowledge water use in the production of aluminum and plastic. Our largest aluminum supplier has confirmed that most of the water used is returned with minimal change in quality, indicating limited water impact. However, we lack sufficient information about water use in plastic production to assess its materiality confidently. We plan to reassess this topic as supplier reporting obligations evolve and provide more transparency. ESRS E4 Biodiversity and ecosystems We believe this topic may be material considering the inherent space efficiency of the AutoStore system, which has the potential to reduce brownfield expansions and positively impact biodiversity and ecosystems. Despite this potential, we currently lack robust data on the system's actual preventive effect on brownfield expansions. As a result, while the topic is currently considered non-material due to stakeholder feedback and data limitations, it will remain under review. ESRS S3 Affected communities AutoStore operates two production facilities, located in industrialized areas in Poland and Thailand, which do not impact local communities materially. In our value chain, the production and transportation of aluminum and plastic components –the material portions – are also not considered to have material impacts on affected communities. Through due diligence relevant to affected communities, AutoStore acknowledges the inherent risks associated with the more distant segments of our upstream value chain, such as components for our Robots. AutoStore has not identified any direct connections to negative impacts or risks resulting from our own operations or those of our business partners. Consequently, this topic remains classified as non- material. ESRS S4 Consumers and end-users End users of the AutoStore system are warehouse workers who interact with the AutoStore system, and we acknowledge its potential positive impact on our end users through ergonomically designed workstations and work environment. While the topic is not currently deemed material, its relevance to warehouse workers and recognition by some stakeholders warrant continued monitoring. 54 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices Financial effects of impacts, risks, and opportunities AutoStore is working on quantifying the monetary financial effects of our identified material impacts, risks, and opportunities. The impact on our financial performance and cash flows will be disclosed in accordance with the phase-in requirements of ESRS. It is consistently acknowledged throughout AutoStore’s respective policies and enterprise risk management that the group shall include relevant ESG related factors in its running assessment of business risks and opportunities. This includes, but is not limited to, conducting climate risk assessments, human rights due diligence, and that health and safety issues are integrated as part of the annual enterprise risk assessment. The principle of double materiality shall be applied in these analyses. AutoStore also utilizes risk assessment tools, such as web- based platforms that collect, analyze, and visualize sustainability data in order to assist in the due diligence and reporting process. Key responsible parties and department heads in AutoStore were consulted in the process for identifying opportunities related to different ESG related topics. These opportunities have been presented to AutoStore’s administrative and supervisory bodies in order to ensure their option to add to the assessment of these opportunities. The material opportunities have further been presented to the relevant parties in order to facilitate the integration into the group’s overall management process where relevant. 55 Contents Negative impact E1 Climate Change Climate change mitigation Negative impact Actual Cross value chain GHG emissions in our supply chain Primary drivers are virgin aluminum and plastic, as well as emissions related to the transportation of material and goods Risk Potential Own operations Stakeholder expectations – Transitional risk Risk of not responding properly to heightened stakeholder expectations of committing to a decarbonization plan Risk Potential Cross value chain GHG pricing mechanisms – Transitional risk Risk of higher prices for emission-intensive products due to GHG pricing mechanisms Energy Negative impact Actual Cross value chain Unfavorable energy mix of renewable energy Positive impact Actual Downstream The AutoStore system may offer reduced energy use and emissions About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 56 Contents E5 Resource Use and Circular Economy Resource inflows, including resource use Negative impact Actual Upstream, downstream Use of non-recycled materials in the AutoStore system, including virgin aluminum and plastic Risk Potential Upstream Dependencies on suppliers Risk of future supply of virgin plastic Resource outflows related to products and services Negative impact Actual Downstream End-of-life processes No formal process for recycling parts in the modules in the AutoStore system Positive impact Actual Downstream Lifetime of the AutoStore system Long lifetime reduces resource use and limits downtime Opportunity Potential Downstream Use of recycled materials in the AutoStore system Waste Negative impact Actual Cross value chain Contributing to waste of wood and plastic Used in the packaging in delivering the AutoStore system About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 57 Contents S1 Own Workforce Working conditions Negative impact Actual Own operations Working time Pressure on certain employees to deliver within short time horizon and/or work outside regular hours Positive impact Actual Own operations Commitment to healthy work-life balance By promoting a flexible workplace, secure employment, and employee well-being Negative impact Potential Own operations Work-related incidents An incident on our workplace will always be important to us and seen as a potential negative impact Risk Potential Own operations Risk of geopolitical conflicts affecting our employees May pose a risk to employees living or traveling to unsafe areas Equal treatment and opportunities for all Positive impact Actual Own operations Committed DEI strategy with concrete initiatives Positive impact Actual Own operations Employee development and career progression Prioritization of training and development program offerings Negative impact Actual Own operations Partly failing to successfully employ and include persons with disabilities Negative impact Actual Own operations Accessibility and availability of information on employees’ rights About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 58 Contents Working conditions Negative impact Actual Upstream, downstream Pressure to deliver within short deadlines or at a low cost Most pertinent to suppliers and transporters in Asia Risk Potential Upstream, downstream Violations of human rights and decent working conditions Risk related to a global value chain with limited transparency S2 Workers in the Value Chain About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 59 Contents G1 Business Conduct Corporate culture Positive impact Actual Own operations Healthy corporate culture Driven by our three values: Lean, transparent, and bold Risk Potential Own operations A sales-driven culture may lead to bias of inappropriate behavior Corruption and bribery Risk Potential Cross value chain Corrupt activities in the value chain can lead to fines or penalties About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 60 Contents Statement on Due Diligence Mapping of information provided in the Sustainability Statements about About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices the due diligence process is shown in the following table. Core elements of due diligence Pages a) Embedding due diligence in governance, strategy, and business model 32, 42, 44, 111 b) Engaging with affected stakeholders in all key steps of the due diligence 44, 47, 129, 144 c) Identifying and assessing adverse impacts 44, 70, 99 d) Taking actions to address those adverse impacts 65, 83, 99, 109, 136, 148 e) Tracking the effectiveness of those efforts, and communicating AutoStore has not yet formalized a process for tracking the effectiveness of policies and actions in relation to the material sustainability-related impacts, risks, and opportunities 61 Contents Index of Material Disclosures ESRS Disclosure requirement Description Pages ESRS 2 BP-1 General basis for preparation of sustainability statement 30 BP-2 Disclosures in relation to specific circumstances 30 GOV-1 The role of the administrative, management, and supervisory bodies 33 GOV-2 Information provided to and sustainability matters addressed by the undertaking's administrative, management, and supervisory bodies 32 GOV-3 Integration of sustainability-related performance in incentive schemes 33 GOV-4 Statement on due diligence 60 GOV-5 Risk management and internal controls over sustainability reporting 38 SBM-1 Strategy, business model, and value chain 41, 42, 49 SBM-2 Interests and view of stakeholders 47 SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and business model 53, 65, 83, 109, 136, 148 IRO-1 Description of the process to identify and assess material impacts, risks, and opportunities 44-53 IRO-2 Disclosure requirements in ESRS covered by the undertaking's sustainability statements 61 ESRS E1 E1-1 Transition plan climate change mitigation 66 E1-2 Policies related to climate change mitigation and adaptation 40, 66-67 E-3 Actions and resources in relation to climate change policies E-4 Targets related to climate change mitigation and adaptation 28, 66 E-5 Energy consumption 74, 77 E-6 Gross scopes 1, 2, 3 and total GHG emissions 77 About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 62 Contents ESRS Disclosure requirement Description Pages ESRS E5 E5-1 Policies related to resource use and circular economy 40, 84-85 E5-2 Actions and resources related to resource use and circular economy 97 E5-3 Targets related to resource use and circular economy 28, 84 E5-4 Resource inflows 86 E5-5 Resource outflows 90 E5-6 Anticipated financial effects from material resource use and circular economy-related risks and opportunities 53 ESRS S1 S1-1 Policies related to own workforce 40, 110-111 S1-2 Process for engaging with own workforce and workers’ representatives about impacts 47, 110, 129 S1-3 Process to remediate negative impacts and channels for own workforce to raise concerns 130, 150 S1-4 Taking action on material impacts on own workforce and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 112 and following pages S1-5 Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities 28, 110 S1-6 Characteristics of the undertaking's employees 131 S1-7 Characteristics of non-employees in the undertaking's own workforce 131 S1-9 Diversity metrics 131 S1-13 Training and skills 133 S1-14 Health and safety 134 S1-15 Work-life balance 134 S1-16 Remuneration metrics (pay gap and total remuneration) 135 S1-17 Incidents, complaints, and severe human rights impacts 135 About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 63 Contents ESRS Disclosure requirement Description Pages ESRS S2 S2-2 Policies related to value chain workers 40, 137-138 S2-2 Processes for engaging with value chain workers about impacts 47, 137, 144 S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns 145, 150 S2-4 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions 140 and following pages S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 28, 137 ESRS G1 G1-1 Corporate culture and business conduct policies 40, 149-150 G1-3 Prevention and detection of corruption and bribery 156 G1-4 Incidents of corruption or bribery 158 About Shareholder Information Board of Directors Report Sustainability Statements General Corporate Social Responsibility General Basis for Preparation Governance Business Model Strategy Double Materiality Assessment Statement of Due Diligence Index of Material Disclosures Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 64 Contents Environment About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices 65 Contents E1 Climate Change About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Introduction 66 Climate Change Mitigation 67 Climate Related Risks 70 Energy 74 Metrics 77 66 Contents Introduction The following sections present our material impacts, risks, and opportunities structured by the standard’s sub-topics along with our approach and policies for addressing these areas. A summary of our general approach and policies related to this topical chapter follows on the next page, and relates to several of the presented impacts, risks, and opportunities presented herein. Further, on each presented impact, risk, and opportunity, we also outline actions and initiatives we have or are planning to implement to: – Mitigate or prevent negative impacts or risks, and – Emphasize positive impacts and opportunities. AutoStore has not yet formalized a process for tracking the effectiveness of policies and actions in relation to the material sustainability-related impacts, risks, and opportunities. In cases where future initiatives for target setting and their time horizon are established, this is addressed under each material impact, risk, or opportunity if deemed relevant. Furthermore, AutoStore has not yet established specific ESG related targets. As a result, current actions and initiatives are not formally aligned with predefined objectives. For more information, read more here. About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices AutoStore is committed to ensuring that our strategy and business model align with the transition to a more sustainable economy. We support our community of stakeholders on their sustainability journey, aiming to be a key enabler in helping end users of the AutoStore system achieve their sustainability goals, while still maintaining full focus on quality, delivery, and cost. This is embedded in one of our values – lean. Key policies in this chapter Code of Conduct Climate and Environmental Policy Responsibility Read more here on how our policies are managed Availability Externally available on our website When assessing our impacts, risks, and opportunities on E1 Climate Change, the primary emphasis has been on our GHG emissions and the principal factors contributing to these emissions. Read more about the process for identifying potential climate related risks. The 2024 baseline for greenhouse gas (GHG) accounting, energy consumption, and other relevant quantitative environmental metrics will serve as indicators for further establishing the group’s ambition level, as well as evaluating progress going forward. Transition plan AutoStore has not yet developed a transition plan for climate mitigation. This matter will be part of the decarbonization roadmap and subject to assessment and review by the Board of Directors. Resilience analysis AutoStore has not conducted a stand-alone resilience analysis of our strategy and business model in relation to climate change or regarding our capacity to address material impacts and risks and to take advantage of material opportunities. High-level considerations of resilience were included in the basis for assessments on impacts, risks, and opportunities, but not formalized. A formal resilience analysis will be a priority going forward. 67 Contents Climate Change Mitigation Our approach and policies About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Our Code of Conduct states that environmental precautions shall be considered throughout the production and distribution of AutoStore’s offerings, from raw materials production to retail. Furthermore, it details that local environments at our production sites shall not be exploited or harmed by pollution. National and international environmental laws and regulations shall be observed, and hazardous chemicals and other substances shall be managed in a responsible manner. Supported by our Code of Conduct, the purpose of our Environment and Climate Policy is to outline the principles guiding AutoStore’s environmental and climate impact management, ensuring consistent implementation, monitoring, and reporting across all our operations. The primary objectives of the policy are to ensure AutoStore works actively to reduce GHG emissions, improve energy use and efficiency, and focus on circularity through the product lifecycle. We want to contribute to reducing GHG emissions, both in our operations and by enabling customers to achieve their sustainability goals through our automated solutions. The CPO is responsible for the implementation of the policy. Our Climate and Environment Policy applies to all entities in the AutoStore group and any third party acting on behalf of AutoStore, requiring compliance with the outlined principles as well as with relevant local regulations. A core principle defined by our Environment and Climate Policy is the precautionary approach – which means avoiding actions with unknown environmental impacts until fully assessed and deemed acceptable. AutoStore maintains an environmental management system aligned with ISO 14001 standards, incorporating environmental, social, and governance factors into risk assessments, and applies the principle of double materiality to address both company and societal impacts. AutoStore commits to annual reporting on environmental and climate performance, integrating supplier data when needed. While the policy covers several broad topics related to climate change, the policy does not directly address all identified material impacts, risks, and opportunities as presented herein, and the management of these. Detailed considerations of how AutoStore addresses climate change mitigation and adaptation, as well as renewable energy, are not included in the policy. Further considerations regarding these topics are addressed in relation to each of the material impacts, risks, and opportunities presented in this chapter where relevant. Furthermore, our Supply Chain Business Ethics Code, which will be replaced by an updated Code of Conduct for Business Partners in 2025, states that suppliers shall implement actions to improve environmental protection during the product life cycle – in the field of design, development, production, transport, and utilization or recycling. AutoStore expects its suppliers to strive to save valuable resources, reduce energy usage, and create less waste and emissions through sustainable practices. Suppliers shall be focused on reducing the use of raw materials and resources, as well as eliminating waste generated as part of their activities. Furthermore, we expect that our suppliers promote principles and practices of social responsibility through the entire supply chain and give great importance to ethics in procurement. 68 Contents Climate change Climate change mitigation About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices GHG emissions in our supply chain – mainly virgin aluminum and plastic Negative impact Value chain Cross value chain Impact Overall environmental impact Connection to strategy and business model Virgin aluminum and plastic are material key resource inflows to the AutoStore system Time horizon Current impact can potentially be reduced in the medium- to long-term horizon We have identified an actual negative climate related impact of GHG emissions within our supply chain, primarily driven by the procurement of the following: – Virgin aluminum used for our Grids – Virgin plastic used for our Bins For an overview of the AutoStore system, including our Grids and Bins, reference is made to our value chain and to the description of resource inflows to the AutoStore system. The majority of AutoStore’s GHG footprint derives from scope 3 upstream emissions, primarily by the production and procurement of virgin aluminum and plastic. Additionally, AutoStore recognizes its GHG emissions by the transportation of material and goods inflows and outflows, mainly by cars, ships, and planes. Our approach and policies Our Code of Conduct states that environmental precautions shall be considered throughout the production and distribution of AutoStore’s offerings, from raw materials production to retail. Our Environment and Climate Policy’s primary objectives are to ensure AutoStore works actively to reduce GHG emissions, improve energy use and efficiency, and focus on circularity through the whole product lifecycle. Our approach and policies described in the introduction to this chapter on climate change mitigation apply to this impact. 69 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Actions and initiatives Developing a more structured sustainability focus Since 2022, our sustainability activities have become more structured and increasingly integrated into our strategic direction. This has involved creating a dedicated organizational structure, recruiting new talent, and defining roles to align with our broader corporate objectives while setting clear priorities within the sustainability domain. Furthermore, we have aimed at integrating our ESG work throughout the organization. These efforts will continue to evolve, with specific projects already defined for the near-term future with initiatives to be prioritized as part of our sustainability commitments. In 2024, AutoStore completed a cradle-to-gate life cycle analysis (LCA) of its Grids and Bins. This specifically included Grids and Bins supplied from one key supplier per module. A cradle-to-gate assessment was chosen because of the expected low lifetime emission of Grids and Bins after installation. However, in order to ensure the highest degree of accuracy, AutoStore has decided to update these assessments to make them cradle-to-grave (complete environmental footprint) assessments. This is a planned activity for the first half of 2025. Furthermore, in 2024, a cradle-to-grave LCA of the R5 Pro Robot was also begun. This project is also expected to be completed within the first half of 2025. When this assessment is concluded, AutoStore will start a cradle-to- grave LCA of one of its Ports. The medium-term plan for AutoStore is to further complete a LCA of the most sold product type in each of its modules to provide a GHG footprint overview of an average AutoStore system. The results of the LCAs completed on Grids and Bins have been integrated into AutoStore’s GHG accounting, as part of strengthening our efforts in ensuring a higher degree of accuracy in reporting data. Exploring green aluminum options Several of our suppliers offer green aluminum – produced with renewable energy and more sustainable practices – and in 2024, we explored the potential use and supply of green aluminum from one of our key suppliers. This project will continue into 2025, with the main focus being the decarbonization roadmap outlined below, which will guide our future efforts in this area. Decarbonization roadmap In 2025, AutoStore has started a decarbonization roadmap project aiming to outline the specific steps needed to establish actionable targets in key areas, including carbon emission reduction and circularity. This further includes developing a business plan for different pathways towards decarbonizing our scope 1 and 2 and scope 3 GHG emissions. 70 Contents Climate Related Risks Physical risks About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices When assessing risks related to climate change adaptation, AutoStore has considered how its assets and business activities may be impacted by exposure to chronic or acute climate related hazards in our own operations and along the value chain. This assessment was part of the process of identifying impacts, risks, and opportunities under the double materiality assessment process. As of December 31, 2024, we have not identified any material climate related physical risks for the group. A standalone physical climate risk assessment was also conducted in relation to AutoStore’s work on the EU Taxonomy. When conducting high-level assessments of AutoStore’s physical climate related risks concerning our facilities and supply chain, considerations were given to the Intergovernmental Panel on Climate Change (IPCC) scenarios and the latest climate science from the IPCC Sixth Assessment Report (AR6). Scenarios ranged from the SSP1-2.6 low-emission scenario (“best case”) to the SSP5-8.5 high-emission scenario (“worst case”). Facilities AutoStore’s locations associated with the highest exposure to climate related hazards, which could have the most significant effect on the group’s production and operational efficiency, are identified to be the facilities in: – Thailand: Rayong – Poland: Koszalin – U.S.: Salem, Denver, Hatfield Thailand faces a high baseline risk from extreme heat and heavy rainfall, particularly during the monsoon season, which brings intense and frequent precipitation, often leading to flooding and operational disruptions. Under SSP1-2.6, these risks will increase moderately, with average temperatures rising by approximately 1.5°C and a slight intensification of monsoon rains. However, under SSP5-8.5, the impact becomes far more severe, with temperatures projected to rise by up to 4°C by 2050. Monsoon precipitation is expected to increase by 20% on average, significantly heightening the frequency and severity of flooding. Poland experiences moderate climate risks, primarily from heavy snowfall, sporadic intense rainfall, and periodic flooding during wetter winters. Under SSP1-2.6, winters may become slightly wetter, though temperature changes are expected to be minimal. In contrast, SSP5-8.5 could bring more pronounced increases in extreme rainfall and flooding events, along with milder but more unpredictable winters. Heavy rain and flood events could rise by 25%, potentially disrupting seasonal patterns and increasing infrastructure challenges. U.S. locations face moderate climate risks from temperature fluctuations, hurricanes, and periodic heavy rainfall. Under SSP1-2.6, average summer temperatures are expected to rise by about 1.5°C by mid-century. Under SSP5-8.5, this increase could exceed 3°C, leading to more frequent heatwaves – potentially extending by up to 30 additional days per year by 2050. Occasional flooding is also expected to worsen, with temperatures rising by 3-5°C and heavy precipitation events increasing by 20-30%, further straining local infrastructure and resilience efforts. 71 Contents Chronic Temperature-related Changing temperature Heat stress Temperature variability Permafrost thawing Wind-related Changing wind patterns Water-related Changing precipitation patterns Precipitation variability Ocean acidification Saline intrusion Sea level rise Water stress Solid mass-related Coastal erosion Soil degradation Soil erosion Solifluction Supply chain AutoStore operates within a global supply chain, both About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices upstream and downstream, and faces challenges associated with global climate risks. The supply chains supporting AutoStore’s production facilities are particularly vulnerable to extreme weather disruptions, notably in Thailand, where the monsoon season brings heavy rainfall and potential flooding. In Poland, occasional heavy snow and rain can disrupt logistics. Under SSP1-2.6, these disruptions are expected to increase slightly. However, under SSP5-8.5, both regions could experience a significant rise in extreme weather events, with Thailand facing more intense monsoon impacts and Poland encountering more frequent and severe rainfall and flooding. Possible supply chain disruptions in our U.S. facilities are primarily linked to sporadic extreme weather events. Under SSP1-2.6, risk is assumed to gradually increase, with more frequent heavy rainfall events – projected to rise by 10-20% by mid-century – posing moderate disruptions. In SSP5-8.5, these disruptions could become severe, with precipitation events intensifying by over 25% by 2050, leading to more frequent road washouts and transportation delays. AutoStore’s work with physical climate risk assessment and analysis will continue in 2025, and management will continue to monitor and assess the actual and potential effects, including plans to mitigate these. Through a hazard screening, AutoStore has identified the potentially relevant climate related hazards (highlighted in red in the subsequent tables) to be monitored and further assessed. Acute Temperature-related Heat wave Cold wave/frost Wildfire Wind-related Cyclones, hurricanes Storms Tornado Water-related Drought Heavy precipitation Flood Glacial lake outburst Solid mass-related Avalanche Landslide Subsidence Transition risks Among the transition risks assessed related to the group’s operations and value chain were regulatory, technological, market, and reputational risks. AutoStore is monitoring several scenarios that may result in material risks in the long-term perspective, and will assess these scenarios further in 2025. The group’s assessments that have resulted in material climate related risks are further described in the following pages in this chapter. 72 Contents Climate change Climate change mitigation About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Risk of not responding properly to heightened stakeholder expectations of committing to a decarbonization plan in the medium-term future Risk Value chain Own operations Connection to strategy and business model Ensure compliance with upcoming regulations while meeting customer and stakeholder expectations – both essential to AutoStore Time horizon This risk is expected to have a low short-term financial impact, but has the potential to be higher in the medium- to long-term horizon We recognize the rapidly evolving customer and regulatory environment drivers for decarbonization and climate targets, and that there is a potential risk of not committing fully to environmental responsibility or of showing insufficient progress in this area. The majority of our larger customers have defined climate targets of their own, hence many of our customers have clear requirements for decarbonization and changes in material use. This is deemed to be a climate related transitional risk. Our approach and policies Our approach and policies described in the introduction to this chapter on climate change mitigation apply to this potential risk. Actions and initiatives Applicable actions and initiatives presented here: – Developing a more structured sustainability focus – Decarbonization roadmap 73 Contents Climate change Climate change mitigation About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Risk of higher prices for emission- intensive products due to GHG pricing mechanisms Risk Value chain Potentially cross value chain Connection to strategy and business model AutoStore’s standardized business model is underpinned by efficient operations and value chain-set up Time horizon This risk is expected to have a low short-term financial impact, but has the potential to be higher in the medium- to long-term horizon With the implementation of GHG pricing mechanisms in the EU, including carbon taxes and regulatory compliance costs, we acknowledge the introduction of the potential risk of higher costs for emission-intensive products like aluminum. For AutoStore, this may potentially lead to increased costs and overall impact our supply chain operational efficiency. This is deemed to be a climate related transition risk. Our approach and policies Our approach and policies described in the introduction to this chapter on climate change mitigation apply to this potential risk. Actions and initiatives Applicable actions and initiatives presented here: – Developing a more structured sustainability focus – Decarbonization roadmap 74 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Energy Our approach and policies In terms of energy use and efficiency, our Environment and Climate Policy states that we shall seek to optimize energy consumption across facilities and infrastructure. Energy efficiency considerations shall be integrated into product design and development, with a focus on reducing energy use in the product use phase. Suppliers are encouraged to adopt energy-efficient practices, especially in logistics and production. We shall optimize the energy use in our physical facilities, and we shall seek to optimize energy use and efficiency when selecting new office buildings, warehouses, production facilities, and other physical locations. Improving the energy use and efficiency in the use phase of our products shall be prioritized in the design phase of new products and in the upgrade of current products. Finally, the policy states that we shall work together with our suppliers to improve energy use and efficiency in the production of the goods and services that we source. We expect services such as transportation and logistics to be carried out with a view to optimize fuel efficiency and energy use. 75 Contents Climate change Energy About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Unfavorable energy mix of renewable energy Negative impact Value chain Cross value chain Impact Overall environmental impact Connection to strategy and business model The principal factors contributing to this negative impact is related to internal transportation and energy use in AutoStore facilities Time horizon Current impact can potentially be reduced in the medium- to long-term horizon Some AutoStore facilities have an energy mix consisting of low levels of renewable energy. Certain facilities rely on energy sources from stationary combustion. The overall energy mix consists of higher levels of renewable energy, but still at sub- optimal levels. We identify this as an actual negative impact. Although several facilities are located in geographical areas with a high degree of renewable energy mix, AutoStore does not currently have Guarantees of Origin (GoO) from renewable sources or Renewable Energy Certificates (RECs). AutoStore will further assess the viability of such initiatives for the company going forward. This is detailed in metrics. Our approach and policies Our approach and policies described in the introduction to this chapter on climate change mitigation apply to this impact. Actions and initiatives Applicable actions and initiatives presented here: – Decarbonization roadmap Energy efficiency in new facilities AutoStore seeks to optimize energy consumption across facilities and infrastructure. This includes continuous assessments of energy use and emission, especially when establishing new offices. In 2024, AutoStore opened a new office in Salem, U.S. This change reduced the use of stationary combustion from propane which was prevalent at the previous office location. 76 Contents Climate change Energy About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices The AutoStore system may offer reduced energy use and emissions Positive impact Value chain Downstream Impact May reduce emissions from energy use in end user warehouse Connection to strategy and business model AutoStore is continuously seeking to enhance the benefits and advantages with the AutoStore system for end users Time horizon Current impact with potential to become more significant following increased data coverage of the extent of the impact One of the main areas where AutoStore can make a positive climate related contribution and impact is related to the inherent space and energy efficiency of the system compared to traditional warehouse solutions. AutoStore’s Robots are designed for minimal energy use compared to the energy required by traditional warehouse solutions. These Robots regenerate energy when braking, further enhancing efficiency. AutoStore’s high-density system enables businesses to store more inventory in a smaller space, reducing the need for additional warehouse facilities. By minimizing space requirements, companies can reduce land use, as well as energy consumption related to heating, cooling, and lighting. Faster, automated fulfillment can also reduce the need for traditional equipment such as forklifts. This impact could prove more significant if the current equipment is reliant on fossil fuels. Our approach and policies Our approach and policies described in the introduction to this chapter on climate change mitigation apply to this impact. Actions and initiatives Positive contribution to be quantified With our vision in mind, by providing solutions that can help us store, share, and move things in a smaller space and with greater speed, we want to contribute to developing a new approach to better utilizing our environment. This is the foundation of our strategy and we continuously work towards capturing white space in an immature market and grow through new applications and adjacencies. Key findings from an impact report1 and interviews with end users of the AutoStore systems highlight the low amounts of energy required by our Robots. These energy- related benefits are yet to be fully quantified. 1 An Economic Impact Study by Forrester commissioned by AutoStore, including customer case studies. 77 Contents Metrics Methodology and assumptions for data About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices collection Energy consumption and mix An overview of AutoStore’s total energy consumption and mix can be found in the table following on the next pages. AutoStore has not utilized Guarantees of Origin (GoO) or Renewable Energy Certificates (RECs). The calculation method is based on the residual mix and the corresponding distribution of energy sources. This means that the reported values are more aligned with the approach applied to calculate market-based scope 2 emissions, with the factors adhering to the hierarchy of emission factors. AutoStore has identified several offices which, based on their geographical location, likely have a local electricity mix consisting of significant amounts of renewable energy. AutoStore currently does not have any GoO for the renewable energy mix, but will explore this going forward. GHG accounting The following section provides an overview of AutoStore's greenhouse gas (GHG) emissions. GHG accounting is an integrated part of the company’s climate strategy, and a fundamental tool for our identification of impacts and measures to reduce emissions. The reporting period for consolidated emissions data is January 1, 2024 to December 31, 2024. The base period for measuring progress is set to 2024, due to the completeness of the data and operational changes from previous reporting years. The reporting includes all subsidiaries of the group within the relevant scopes and categories. The input data for our GHG accounting comprises consumption data from internal and external sources, converted into tonnes of CO2-equivalents (tCO2eq). The analysis is based on the Corporate Accounting and Reporting Standard developed by the Greenhouse Gas Protocol Initiative (GHG Protocol). AutoStore uses the operational control approach for consolidating its GHG accounting, which is aligned with AutoStore’s financial approach. The GHG emissions accounting comprises the following organizational units and offices: Norway (Nedre Vats, Oslo, Husøy, Raglamyr, and Stavanger), Poland, U.S. (Denver, Hatfield, and Salem), Thailand, UK, Germany, France, South Korea, Austria, Japan, Singapore, Canada, Italy, Sweden, Lithuania, Australia, Ireland, and Spain. Inclusions/exclusions AutoStore has included all relevant material emissions for 2024, following the same methodology as the previous years. The current omitted items pertain to instances where the information is too aggregated or incomplete. These items have been assessed immaterial quantities. There are no significant exclusions in the GHG accounting for 2024. Data is hence considered complete for scope 1, 2, and 3 emissions. Estimations Estimations have been used for scope 2 emissions on AutoStore’s office locations with less than 15 employees. Scope 3 estimations include the following 6 categories: Employee commuting, processing of sold products, use of sold products, end-of-life treatment of sold products, and downstream leased assets. Specific units are estimated for some categories. Waste data have been estimated for office locations with less than 15 employees and for the U.S. locations. The relevant categories are estimated due to the lack of available data or due to the relative size of the categories. Thresholds used will be consistent with following years. Changes from 2023 AutoStore has elected to set the base year for GHG accounting to 2024. This is due to a more comprehensive inclusion of available data and the inclusion of activity from the new production facility in Thailand. AutoStore has also identified double counted items in the 2023 GHG accounting report. These considerations restrict the value of direct comparison of 2023 and 2024 data, and makes 2024 a more suitable year for comparison going forward. 78 Contents Scope 1 About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Scope 1 emissions include AutoStore’s direct emission sources. Emissions relate to fuel consumption from company cars, stationary combustion of propane, and natural gas. Calculations for emissions from company cars are based on reported fuel types in liters and mileage readings. The reported propane use relates to AutoStore’s U.S. locations. Scope 2 Scope 2 emissions include all indirect emissions sources from purchased energy. This includes electricity use, district heating, and district cooling. Calculations are based on activity data collected related to energy use (MWh) in AutoStore’s locations, facilities, and electric vehicles. In cases where data is unavailable, estimations were applied using databases for energy efficiency indicators and energy consumption, or average consumption based on other countries AutoStore facilities are located in. Estimations have been used for scope 2 emissions for AutoStore’s office locations with less than 15 employees and for AutoStore employees working remote. Scope 3 The total indirect GHG emissions have increased from 2023. Comparative data is not included due to previously stated considerations for defining the base year for GHG accounting to 2024. The GHG accounting for scope 3 is split into the following categories: Category 1 – Purchased goods and services The purchase of goods and services are accountable for almost 90% of AutoStore’s total GHG emissions. The key driver for emissions, and consequently the main focus for GHG calculations, relates to the purchased components and materials used in the production and assembly which make up the AutoStore offerings. Calculations are primarily based on the weight of materials purchased by suppliers, with emission factors for each material. Read more about AutoStore’s main material use in the Resource inflows chapter. Most emission items that does not relate to AutoStore products, are calculated based on spend data. Category 2 – Capital goods Capital goods are calculated by collecting activity data. Category 3 – Fuel and energy-related activities GHG emissions are calculated based on fuel and energy consumption not included in scope 1 or scope 2 (upstream emissions related to scope 1 and 2). Category 4 – Upstream transportation and distribution Upstream transportation and distribution is calculated based on available data and reports received from suppliers. Some emission factors pertaining to the “purchased goods and services” category already include part of the emissions from transport and distribution. Category 5 – Waste generated in operations Waste generation is estimated for all locations with offices of 15 or fewer employees, as well as for U.S. offices due to data limitations. The estimation is based on statistics for waste types and the average waste disposed of per employee. International recycling statistics have been applied to refine the calculations and determine final waste amounts. Category 6 – Business travel Business travel is calculated based on reports from various travel agencies used during the reporting period, as well as spend data for business travel expenses. Company car activities are in some cases reported as “mileage compensation” in this category. Omitted items in this category pertains to instances with incomplete or too aggregated information. These instances are assessed to be immaterial quantities. Category 7 – Employee commuting Employee commuting is estimated for all employees across AutoStore based on national and international commuting statistics. This includes contingent workers, apprentices, fixed-term employees, interns, regular staff, and seasonal workers. Remote and home office workers are excluded, as they do not commute to an office. 79 Contents Category 8 – Upstream leased assets About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Upstream leased assets are not included due to relevance to AutoStore. Emissions related to electricity use, district heating, and district cooling in AutoStore’s locations and facilities are included in scope 2. Category 9 – Downstream transportation Downstream transportation is calculated based on available data and reports received from suppliers. Emissions from this category relate to transportation not paid for by AutoStore. Category 10 – Processing of sold products Processing of sold products is estimated based on the energy consumption of installation tools and the complexity of the Grid set-ups. Complexity is assessed by the number of tools and ports involved, with different thresholds applied. Only Grids created in 2024 are included to avoid double counting, and assumptions are made for cases where no new Grids were recorded. Category 11 – Use of sold products Use of sold products is estimated based on recorded working hours and power usage data, ensuring alignment with real operational patterns. The expected lifespan follows assumptions from AutoStore’s financial accounting. Average power consumption per module is derived from product specifications, while daily operating hours are calculated by dividing total registered hours by the number of working days in a year. After determining total power consumption for each country, electricity emission factors from the respective countries are then applied to estimate the associated emissions. Category 12 – End-of-life treatment of sold products End-of-life treatment of sold products is estimated based on the material composition of Robots, Ports, and Grids. By using total sales data, the overall material volume is determined. Waste treatment statistics from the countries where the products are sold are then applied to estimate the share of materials that go to recycling, landfill, and incineration. Category 13 – Downstream leased assets Under some contracts, AutoStore leases out Robots and Ports, which are accounted for under downstream leased assets. The estimation follows the same parameters as use of sold products, but only considers annual usage, excluding lifespan, to reflect annual energy consumption. Category 14 – Franchises This category is not included due to relevance, as AutoStore does not conduct franchise operations. Category 15 – Investments This category is not included due to relevance, as AutoStore does not finance emissions through investments. Emission factors Most location-based electricity emission factors used are based on national gross electricity production mixes and are published by the International Energy Agency’s statistics (IEA Stat). Emission factors per fuel type are in these calculations based on assumptions in the IEA methodological framework. Emission factors for district heating/cooling are either based on actual (local) production mixes or average national statistics. For the market-based method for electricity without GoOs or RECs, the emission factor is based on the remaining electricity supply after all GoOs for renewable electricity and/or RECs have been sold and cancelled. This is called the residual mix, which in most cases is connected to a substantially higher emission factor than the location- based emission factor. The most essential emission factors used for AutoStore’s GHG emissions calculations are based on databases and references from AIB, DEFRA, EcoInvent, IEA, IPCC, and WBCSD/WRI. GHG intensity GHG intensity is based on total GHG emissions and net revenue for 2024. The net revenue can be reconciled with "total revenue and other operating income” in note 2.1 in the consolidated Financial Statements. High climate impact sectors AutoStore assesses that the undertaking does not have operations and activities in high climate impact sectors. 80 Contents Energy consumption from non-renewable sources Unit 2024 Fuel consumption from coal and coal products MWh - Fuel consumption from crude oil and petroleum products MWh 262.1 Fuel consumption from natural gas MWh 1.4 Fuel consumption from other fossil sources MWh - Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources MWh 7,753.1 Total fossil energy consumption MWh 8,016.6 Share of fossil sources in total energy consumption % 83.5% Consumption from nuclear sources MWh 492.7 Share of consumption from nuclear sources in total energy consumption % 5.1% Fuel consumption for renewable sources, including biomass1 MWh 11.6 Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources MWh 1,084.1 Consumption of self-generated non-fuel renewable energy MWh - Total renewable energy consumption MWh 1,095.7 Share of renewable sources in total energy consumption % 11.4% Total energy consumption MWh 9,605.0 About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices 1 Also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc. 81 Contents GHG emissions Unit 2024 Scope 1 Gross scope 1 GHG emissions tCO2eq 60.9 Percentage of scope 1 GHG emissions from regulated emission trading schemes % - Scope 2 Gross location-based scope 2 GHG emissions tCO2eq 2,739.1 Gross market-based scope 2 GHG emissions tCO2eq 4,848.0 Scope 3 – significant emissions Total gross indirect (scope 3) GHG emissions tCO2eq 317,240.2 1 Purchased goods and services 285,679.6 2 Capital goods 159.9 3 Fuel and energy-related activities (not included in scope 1 or scope 2) 696.0 4 Upstream transportation and distribution 14,542.4 5 Waste generated in operations 29.6 6 Business traveling 3,622.7 7 Employee commuting 528.3 8 Upstream leased assets - 9 Downstream transportation - 10 Processing of sold products 12.9 11 Use of sold products 10,877.0 12 End-of-life treatment of sold products 271.0 13 Downstream leased asset 8.8 14 Franchises - 15 Investments - Total GHG emissions – location-based tCO2eq 320,040.2 Total GHG emissions – market-based tCO2eq 322,149.1 About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices 82 Contents GHG intensity Unit 2024 Net revenue used to calculate GHG intensity USD million 601.4 GHG emissions intensity (location-based) tCO2eq/’000 USD 0.53 GHG emissions intensity (market-based) tCO2eq/’000 USD 0.54 About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices 83 Contents E5 Resource Use and Circular Economy Introduction 84 Resource Inflows 85 Resource Outflows 90 Waste 95 Metrics 98 About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices 84 Contents Introduction The following sections present our material impacts, risks, and opportunities structured by the standard’s sub-topics along with our approach and policies for addressing these areas. A summary of our general approach and policies related to this topical chapter follows on the next page, and relates to several of the presented impacts, risks, and opportunities presented herein. Further, on each presented impact, risk, and opportunity, we also outline actions and initiatives we have or are planning to implement to: – Mitigate or prevent negative impacts or risks, and – Emphasize positive impacts and opportunities. AutoStore has not yet formalized a process for tracking the effectiveness of policies and actions in relation to the material sustainability-related impacts, risks, and opportunities. In cases where future initiatives for target setting and their time horizon are established, this is addressed under each material impact, risk, or opportunity if deemed relevant. Furthermore, AutoStore has not yet established specific ESG related targets. As a result, current actions and initiatives are not formally aligned with predefined objectives. For more information, read more here. About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices AutoStore recognizes that circularity and sustainable resource use is important in the transition to a greener and more sustainable future. Making lean and efficient products is embedded in the AutoStore DNA. Key policies in this chapter Code of Conduct Climate and Environmental Policy Responsibility Read more here on how our policies are managed Availability Externally available on our website Through our stakeholder dialogue, we have indirectly mapped activities and areas of interest regarding resource use and circular economy. We have conducted a screening of our relevant activities and assets in order to identify and assess potential impacts, risks, and opportunities related to resource inflows, outflows, and waste. As a basis for evaluation of both our own operations and our value chain, we have specifically reviewed our production process, procurement practices, and waste management. AutoStore has not directly conducted consultations with affected communities with regards to resource use and circular economy. As a result of the assessment process, we have identified a number of material inflows and outflows that will be prioritized for further disclosure and reporting. Specification of resource inflows and outflows Grids and Bins in the AutoStore system are not produced directly by AutoStore, and these modules are shipped directly to the end user from the supplier. The materials are still considered material inflows in our assessment, and the Grids and Bins are considered material resource outflows as this is part of the AutoStore system deliverable and “the products placed on the market” by AutoStore. The baseline for the 2024 GHG accounting, energy consumption, waste management, and other relevant quantitative environmental metrics will serve as indicators for further establishing the group’s ambition level. 85 Contents Resource Inflows Description About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices AutoStore uses a range of materials in the production and assembly process. The specified inflows in this chapter have been assessed as material due to the volume of use for production purposes and their respective impacts on resource use and circularity. For AutoStore’s resource inflows, the main focus has been on the materials as well as packaging used in delivering the AutoStore system. These are further described in the respective impacts, risks, and opportunities in this chapter. Most of the components in the AutoStore system are sourced from suppliers. The highest value-adding activity in our own operations is the final assembly of the modules in AutoStore’s own production facilities. This process is less dependent on extensive use of equipment and machinery. AutoStore’s assets relating to property, plant, and equipment are not considered material resource inflows for reporting in this chapter. AutoStore does not use material amounts of biological materials in its production and assembly process, but utilizes wood as part of packaging of products. Other materials such as critical raw materials and rare earths, along with water inflows are assessed as not material resource inflows for reporting under ESRS E5. Due to the extensive number of components and parts that comprise the total resource inflows, AutoStore acknowledges the complexity and challenges of mapping circularity data for each individual component. For reporting purposes, AutoStore has focused on the most material resource inflows in 2024, with plans to expand this effort in the future. These efforts are further detailed in the actions and initiatives in this chapter. On the following page, we provide an overview of the modules that make up AutoStore system’s product groups. The modules in the AutoStore systems are a leading factor for considerations for both material inflows and outflows. Our approach and policies Resource use and circular economy is one of three primary objectives outlined in AutoStore’s Environment and Climate Policy. This policy ensures that AutoStore maintains focus on circularity throughout the entire product lifecycle, from design to use and end-of-life. To remain innovative and competitive, we aim at continuously enhancing the circularity of our products. This involves challenging ourselves and our suppliers to choose materials offering the best combination of longevity, climate footprint, and recyclability. General considerations regarding the scope, responsibilities, and implementation of the policy is described in E1 Climate Change. Concerning sustainable sourcing, our Environment and Climate Policy addresses that AutoStore shall work together with suppliers to improve energy use and efficiency in the production of the goods and services that we source. We have not yet adopted formalized guidelines for sustainable sourcing of products and services, and data is currently not available. The policy also addresses that AutoStore shall adhere to the waste hierarchy in the management of waste in our own operations. The policy does not address the concepts of eco-design, waste as a resource, or post-consumer waste. We expect our suppliers to adhere to the waste hierarchy in the management of waste produced in their production processes. We encourage our suppliers to initiate dialogue with us if they have identified opportunities for improving circularity or material choice in their deliveries to us. Read more about AutoStore’s waste management. The policy specifies a commitment to continuously improving the circularity of our products, and the need to challenge ourselves and our suppliers on which materials offer the best combination of longevity, climate footprint, and recyclability, in line with technological innovations. While the policy covers several broad topics related to resource use and circularity, the policy does not directly address all identified impacts, risks, and opportunities, and their management verbatim, such as the transition away from the use of virgin resources. Detailed considerations of how the company addresses circularity topics is not included in the policy. Further considerations regarding these topics are addressed in relation to each material IRO in this chapter where relevant. AutoStore’s environmental management system was certified in accordance with ISO 14001 in 2024. 86 Contents Grids – ‘The structure’ Description The Grid is the aluminum framework that holds the columns of vertically stacked Bins in place while also being the railways for Robots. Materials The Grids are primarily constructed of virgin aluminum. Durability The durability of the Grids are related to the long lifetime of the aluminum when used according to guidelines. Most of the Grids ever delivered by AutoStore are still in use, and the aluminum is infinitely recyclable. Bins – ‘The container’ Description Like blocks, Bins are stacked next to and on top of each other within the Grid. These durable containers hold the inventory in the AutoStore system. Materials AutoStore provides three different Bin types made of virgin plastic (HDPE, PP-C, or anti-static PP-ESD), all well-suited for recycling at the end of their lifetime. Durability Strong construction and gentle Robot handling secures the long lifetime of the Bins. The first AutoStore system was installed in 2005 and virtually all AutoStore Bins are still in use in AutoStore systems worldwide. The lifetime of the Bins is estimated to be approximately 10-20 years. Durability is dependent on factors such as workload, inventory weight, and involvement of third-party transport and handling equipment. Robots – ‘The worker’ Description Robots ride on rails along the top of the Grid, retrieving and delivering Bins to workstations. Materials The cover material of the Robots are made up of aluminum, with the Robots consisting of several separate components. The components linked to material impacts include, but are not limited to PCBA (printed circuit board assembly) and batteries. The batteries in the R5 Robot are chargeable and uses two 12V/105Ah AGM batteries (lead acid - Absorbed Glass Mat) as a standard. The estimated lifetime design and expectancy of the batteries for each R5 Robot is subject to systems’ running time: – Systems running 8 hours a day, 5 days a week – 8 years – Systems running 16 hours a day, 5 days a week – 4 years – Systems running 16 hours a day, 5 days a week – 4 years Durability The lifetime design and expectancy of the Robot engines are dependent on weight, driving frequency, operational hours, and other factors. The AutoStore modules have an estimated durability of at least 10 years. The belts and batteries in the Robots are the components that are most susceptible to wear and tear. Repairs and spare parts are readily available for the end user. Recyclability Enhancing the recyclability of the materials used in the Robots and obtaining more comprehensive and accurate data regarding this information will be a priority for AutoStore in its ongoing commitment to circularity. Ports – ‘The workstation’ Description Ports are workstations where operators pick up or fill in products, tag, pack, and send products out. They are designed to keep the orders rolling without reducing efficiency. The main consideration of our Ports is employee safety, comfort, and productivity. Each workstation is designed at an optimal height and includes multiple safety features to prevent injury. Materials There are 6-8 different product lines of Ports in the AutoStore system. The furniture material in the Ports are primarily comprised of aluminum and composite material. The main components for the Ports also include belts, motors, wheels, weights, weight switch, and optical sensor boards. Durability The AutoStore modules have an estimated durability of at least 10 years. Recyclability: The aluminum used in the product is infinitely recyclable. Controller – ‘The brain’ Description The Controller is the command center and uses the Router software platform to manage both Bin traffic and the AutoStore database. The Controller will also run diagnostic troubleshooting when Robot errors occur using XHandler, greatly increasing the system's uptime. Materials A fully assembled AutoStore Controller consists of a 19ʺ steel mini-rack with the following components: fans for cooling, industrial computer (AutoStore Controller computer), network switch, ASIO (AutoStore Input/Output), and UPS. Durability The AutoStore modules have an estimated durability of at least 10 years. Recyclability The aluminum used in the product is infinitely recyclable. Modules in the AutoStore system About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices 87 Contents Resource use and circular economy Resource inflows About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Use of non-recycled materials Negative impact Value chain Upstream, downstream Impact Overall environmental impact Connection to strategy and business model Aligned with our business model and strategy to remain innovative and competitive, AutoStore recognizes the growing emphasis on circularity to staying at the forefront of sustainable automation solutions Time horizon Current impact with a medium- to long-term horizon subject to advances in own operations AutoStore’s material resource inflows include raw materials stemming from virgin aluminum for most of our Grids and virgin plastic for our Bins. Material inflows for our Robots include PCBA boards and batteries. This material inflow relates to our upstream value chain. Furthermore, wood and non- recycled plastic used in the packaging of materials and modules in the AutoStore system is also considered material resource inflows. This relates to both our upstream and downstream value chain. Our approach and policies Our approach and policies described in the introduction to this chapter on resource use and circular economy apply to this impact. Actions Options to be explored, but not yet formalized Incorporating a larger amount of recycled materials into the resources used for production of the AutoStore system is a focus area in AutoStore’s sustainability journey. AutoStore is exploring options to improve efficiency, extend longevity, and integrating more recycled materials into the product design, but no formal process has been adopted in 2024. Key to incorporating recycled materials into product design is ensuring that the products meet AutoStore’s required standards of quality and durability. The feasibility of the implementation of such solutions is ultimately subject to evolving demand and preferences from end users. PLM implementation project AutoStore has implemented a Product Lifecycle Management (PLM) project, which is a strategic initiative aimed at enhancing our product lifecycle management capabilities. Initially, the initiative aims to fully gather all product related definitions in one common repository and structure (engineering BOM). 88 Contents Resource use and circular economy Resource inflows About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Dependencies on suppliers Risk Value chain Upstream Connection to strategy and business model Financial risk related to loss of opportunities due to not meeting stakeholder expectations, or through exposure to legal restrictions limiting access to suppliers due to circularity concerns Time horizon Current risk with a medium- to long- term horizon subject to advances in own operations AutoStore recognizes a potential risk related to exposure to changes in stakeholders expectations. Evolving environmental regulations and shifts in demand for products with virgin plastic may lead to changes in costs and gross margins, resulting in the need for alternate sourcing of materials, potentially affecting the supply chain's operational efficiency. Our approach and policies Our approach and policies described in the introduction to this chapter on resource use and circular economy apply to this potential risk. Actions and initiatives Applicable actions and initiatives presented here: – Options to be explored, but not yet formalized – PLM implementation project 89 Contents Metrics Methodology About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices The weights of products and materials are calculated based on a hybrid of supplier input data and reports, spend data, and estimates. Read more here regarding information on methodology relating to purchased materials. Weights for AutoStore’s material resource inflows are sourced from direct measurements, through supplier reports, or through supplier spend data. Overall total weight Most of the resources AutoStore consumes, are related to our production and manufacturing process. These are the resource inflows that are related to AutoStore’s impacts, risks and opportunities. The estimated overall total weight of products and technical and biological materials used in production during the reporting period is listed in the metrics overview. Biological materials AutoStore does not use biological materials, such as biofuels, during the production and assembly process. Biological materials such as wood is used for packaging of products, and weights are listed in the metrics overview. AutoStore does not use certification schemes for the biological materials sourced. There are no material amounts of materials sourced from by-products or waste-stream used in the production process. Recycled and reused materials AutoStore uses a wide range of components consisting of different materials. AutoStore does not currently have the necessary specific data to disaggregate potentially recycled materials comprising the components for each product group. Based on assessments made of the materials used, AutoStore does not use any significant amount of secondary reused or recycled components, secondary intermediary products and secondary materials to manufacture the undertaking’s products and services. Materials for packaging does not come from recycled materials. Based on the double materiality assessment and volume used, AutoStore has limited material resource inflows to the following materials: Material resource inflows Description Unit 2024 Virgin aluminum Used in the production of Grids tonnes 10,665.1 Virgin plastics Used in the manufacture of Bins tonnes 41,633.4 PCBA boards Used in Robots assembly tonnes 25.0 Batteries Used in Robots assembly tonnes 1,024.3 Virgin plastic Used in the assembly and packaging of products tonnes 1,344.0 Wood Used in packaging of products tonnes 1,937.7 Total weight of material resource inflows tonnes 56,629.6 Other materials tonnes 4,432.8 Overall total weight tonnes 61,062.3 90 Contents Resource Outflows About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices AutoStore aims to continuously improve the circularity of our products, limit waste, and promote resource efficiency. We also need to challenge ourselves and our suppliers on which materials offer the best combination of longevity, climate footprint, quality, and recyclability, in line with technological innovations. 91 Contents Resource use and circular economy Resource outflows About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices End-of-life processes Negative impact Value chain Downstream Impact Overall environmental impact Connection to strategy and business model Aligned with our business model and strategy to remain innovative and competitive, AutoStore recognizes the growing emphasis on circularity to staying at the forefront of sustainable automation solutions Time horizon Current impact with a medium- to long-term horizon subject to advances in own operations AutoStore has not yet established formal procedures and processes for the end-of-life recycling of the materials used in the system's modules. While the modules in the AutoStore system have a long lifetime, which limits the cycle of needed recycling, facilitating formal recycling procedures presents a clear opportunity for improvement for AutoStore. Our approach and policies Our approach and policies described in the introduction to this chapter on resource use and circular economy apply to this impact. Actions Applicable actions and initiatives presented here: – Options to be explored, but not yet formalized – PLM implementation project Life cycle analysis AutoStore is in the process of conducting a life cycle analysis (LCA) of its modules. This will provide quantitative data on impacts related to circularity for the AutoStore system, as well as insights and basis for future actions and strategy implementation. 92 Contents Resource use and circular economy Resource outflows About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Lifetime of the AutoStore system Positive impact Value chain Downstream Impact Overall environmental impact Connection to strategy and business model Aligned with our business model and strategy to remain innovative and competitive, AutoStore recognizes the growing emphasis on circularity to staying at the forefront of sustainable automation solutions Time horizon We are committed to maintaining the presented current actions and initiatives in the future Based on materiality and volume used, both the aluminum (Grids) and the plastic (Bins) have a long lifetime, which reduces resource use and limits downtime. Most of the sold Grids and Bins are still in use in AutoStore systems worldwide and the aluminum used in the Grids is infinitely recyclable. This longevity aligns with AutoStore’s aim of limiting waste and promoting resource efficiency. Our approach and policies Our approach and policies described in the introduction to this chapter on resource use and circular economy apply to this impact. Actions Applicable actions and initiatives presented here: – Options to be explored, but not yet formalized – PLM implementation project – Life cycle analysis 93 Contents Resource use and circular economy Resource outflows About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Use of recycled materials in the AutoStore system Opportunity Value chain Downstream Connection to strategy and business model Aligned with our business model and strategy to remain innovative and competitive, AutoStore recognizes the growing emphasis on circularity in order to stay at the forefront of sustainable automation solutions Time horizon The magnitude of financial effect is subject to evolving requirements and expectations in end market segments AutoStore recognizes that offering Grids and Bins made with green aluminum and recycled plastic could contribute to meeting stakeholder expectations, as well as retaining and/or attracting sustainability-oriented customers, end users, and investors. AutoStore is currently not using green aluminum and recycled plastic in our production process, but are exploring suitable options for further assessment. This does, however, need to be in line with the quality AutoStore expects for its systems. Our approach and policies Our approach and policies described in the introduction to this chapter on resource use and circular economy apply to this potential opportunity. Actions Applicable actions and initiatives presented here: – Options to be explored, but not yet formalized – PLM implementation project – Life cycle analysis Metrics The AutoStore system consists of several modules. This section provides a description of the key products that come out of our production process. For the purpose of reporting on our resource outflows, the AutoStore system is presented on its durability, repairability, and recycling content on the following page. 94 Contents Metrics on products and materials Durability About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices The modules in the AutoStore system have a long lifetime, and most installed systems are still in use. This limits available data and statistics for registering the lifetime of each module. An established general benchmark for the AutoStore system is an estimated durability of at least 10 years. The durability of AutoStore’s modules are also dependent on a number of factors. Considering intended use and maintenance procedures are followed, the key considerations for durability relates to: – Work load per module (throughput, Grid layout, Bin distribution) – Average weight of the Bins – Environment where the system is installed – Quality and quantity of maintenance and repairs A complete breakdown of estimated maintenance cost per installation, as well as estimated frequency of parts to be replaced over a 10-year period are provided to AutoStore’s distribution partners, responsible for the installation and service and maintenance of the system. AutoStore has not identified an applicable industry average for the durability of its product groups. Repairability The AutoStore products are designed to be repairable. Key considerations for delivering the AutoStore system include providing the end user with the necessary information and education on procedures and options for repair and maintenance of products, as well as facilitating the necessary availability of spare parts. The repair and maintenance of the end user’s systems are handled by AutoStore’s distribution partners. AutoStore provides its distribution partners with the necessary training, education, and commissioning to ensure they conduct installation, service, and support for the end user with high quality. As part of the Grid design process, end users may order a desired amount of spare parts. End users are also provided with relevant service manuals and may order spare parts from a dedicated AutoStore website. AutoStore may be consulted on issues regarding service and maintenance. For more complex repairs, AutoStore's production facility in Poland is responsible for handling these issues. We have not identified an established rating system that is applicable to the products in the AutoStore system. Additional information on the durability and recyclability of AutoStore’s products can be found on the product overview here. Recyclable content As of now, we do not have the necessary data to calculate rates of recyclable content in each product group. AutoStore aims to increase available data through the PLM project aimed at enhancing our product lifecycle management capabilities. Packaging of the AutoStore system AutoStore operates in an industry that requires extensive packaging to maintain the integrity of shipped products and materials. This applies to both resource inflows and outflows. The primary material used in packaging for our products is virgin plastic. AutoStore also utilizes wood (wooden pallets) packaging for modules. Lesser amounts of cardboard is also used to protect the products during transport. Plastic and wooden pallets are reused in certain cases, but there is currently no formal process in place to monitor this process. Although the content of packaging of products is well suited for recycling, there is currently no recycling solutions in place (read more in the following section). AutoStore is exploring alternatives for packaging materials and recycling solutions. However, we acknowledge that the nature of the items being shipped, such as Robots and Ports, necessitates packaging that meets specific quality standards to ensure their safe transportation. 95 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Waste AutoStore's production facilities in Poland and Thailand are key locations that manage the waste generated from the production and assembly of the products that AutoStore places on the market. AutoStore’s waste management process regarding the handling and disposal of waste or unused materials produced by the company is compliant with applicable laws and regulations. The key procedures and responsibilities are covered by the ISO 14001 certification. AutoStore has identified material negative impacts regarding waste from the packaging used in delivering the AutoStore offering. Transporting AutoStore products involves extensive packaging in order to safeguard the integrity of the product until delivery at the installation site. The primary composition of waste from packaging are wood waste and virgin plastics. 96 Contents Resource use and circular economy Waste About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Contributing to waste of wood and plastics Negative impact Value chain Cross value chain Impact Overall environmental impact Connection to strategy and business model Aligned with our business model and strategy to remain innovative and competitive, AutoStore recognizes the growing emphasis on circularity to staying at the forefront of sustainable automation solutions Time horizon Current impact with a medium- to long-term horizon subject to advances in own operations We recognize an actual negative impact with our solutions currently being delivered in wood and non- recycled plastic. AutoStore also contributes to wood waste in other parts of its supply chain, such as its office facilities. More information about AutoStore’s waste measures can be found in the following pages. Our approach and policies Our approach and policies described in the introduction to this chapter on resource use and circular economy apply to this impact. Actions Exploring alternative solutions After the delivery of products, waste handling at the installation site is not handled directly by AutoStore. We do however recognize a responsibility for facilitating solutions that does not result in excess waste for the end user. AutoStore is looking into alternative solutions to wood and plastic packaging, as well as recycling solutions. As part of a wider plan to collaborate with installation partners and end users, we will continue to address the issue of waste handling and end-of-life processes for the AutoStore system going forward. A breakdown of the total amount of waste generated in our own operations is presented here. 97 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Actions and resources AutoStore has conducted several actions to reduce the risk of material negative impacts on circularity. This is outlined in the section on our identified impacts, risks, and opportunities earlier in this discussion. AutoStore has not adopted a specific action plan that includes an overview of resources allocated to their implementation. 98 Contents Metrics AutoStore’s waste composition is primarily made up of residual waste, metal, paper, About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices and wood waste. Hazardous waste is monitored and disposed of in a responsible manner. AutoStore does not generate radioactive waste. Methodology and assumptions for data collection Waste is generally calculated based on invoices received from waste recipients for the respective AutoStore locations. The calculations are supplemented with measurements from AutoStore’s production facilities in Poland and Thailand. AutoStore relies on waste disposal methods reported directly by the different local actors in waste reception and recycling. In cases where this data is unavailable, estimations are used based on country averages for waste management data, or by a using a conservative approach. The methodologies for calculations of waste data in this chapter are consistent with the methodologies previously described in relation to AutoStore’s GHG emissions for Category 5 – Waste generated in operations. AutoStore is aware that there might be higher levels of hazardous waste present in the overall scope of waste. Classifications for activity data are reliant on disposal methods reported directly by the different local actors in waste reception and recycling and whether this is tracked. Waste generated kg Non- hazardous Hazardous Total a. Preparation for reuse - - - b. Recycling 269,613.9 - 269,613.9 c. Other recovery operations 45,315.7 865.0 46,180.7 A. Total diverted from disposal (a. + b. + c.) 314,929.6 865.0 315,794.6 d. Incineration 10,423.7 20.0 10,443.7 e. Landfill 16,809.8 - 16,809.8 f. Other disposal operations - - - B. Total directed to disposal (d. + e. + f.) 27,233.5 20.0 27,253.5 Total waste (A. + B.) 342,163.1 885.0 343,048.1 Non-recycled waste (d) 72,549.2 885.0 73,434.2 Non-recycled waste % (d) 21.2% 100.0% 21.4% 99 Contents EU Taxonomy About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices 100 Contents Introduction The EU Taxonomy is an internationally recognized About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices classification system that defines sustainable economic activities, aiming to redirect capital towards sustainable investments and support the transition to a low-carbon, resilient, and resource- efficient economy. AutoStore is in scope of the EU Taxonomy regulation, which assesses how our economic activities are considered environmentally sustainable according to the criteria set forth in the EU Taxonomy. AutoStore presented its first mandatory report pursuant to the EU Taxonomy for the 2023 financial year. As part of this, all economic activities for AutoStore were evaluated, leading to the identification of the eligible activities for 2023. The 2024 EU Taxonomy report builds upon this foundational work, incorporating a thorough examination to identify and determine which economic activities are eligible and aligned with AutoStore's interpretation of the EU Taxonomy definition. Eligibility AutoStore has conducted an eligibility screening and assessment of its economic activities and whether they relate to the Commission Delegated Regulation (EU) 2021/2139 and its amendments. For the reporting year 2024, AutoStore has continued its previous eligibility work, while also conducting an independent assessment to ensure the report’s completeness, relevance, and quality. AutoStore has followed the development of the Taxonomy regulation closely. To identify eligible activities, a list of potentially eligible activities was drafted through a preliminary screening and discussed with key internal staff and external consultants. AutoStore has identified seven EU Taxonomy eligible activities to be included in its reporting. Alignment AutoStore’s eligible economic activities are assessed against the “Substantial Contribution” and the “Do No Significant Harm” (DNSH) criteria as set out in the technical screening criteria of Commission Delegated Regulation (EU) 2021/2139 and its amendments, as well as the “Minimum Safeguard” criteria. While the substantial contribution and the DNSH criteria are economic activity- specific criteria, the minimum safeguards criteria is a company-level policy requirement. AutoStore has assessed one of its eligible activities as EU Taxonomy aligned, and to be included in its reporting. 101 Contents Overview Proportion of turnover/total turnover % Taxonomy-aligned per objective Taxonomy-eligible per objective CCM - - CCA - - WTR - - CE - 71.0% PPC - - BIO - - The following tables provide a breakdown of AutoStore's About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Turnover In 2024, AutoStore’s Taxonomy-eligible turnover stands at 71.0%, primarily attributed to activities related to circular economy (CE). This turnover is mainly generated from sales of AutoStore systems. CAPEX The Taxonomy-eligible CAPEX activities consist primarily of research and development of AutoStore’s product pipeline, which was 74.8% in 2024, an increase from 2023. CAPEX plan AutoStore currently does not have a CAPEX plan to expand Taxonomy-eligible economic activities or to enable activities to become Taxonomy-aligned. OPEX In 2024, AutoStore’s Taxonomy-aligned OPEX was 0.03%, which related to electric vehicle chargers. The eligible OPEX for 2024 was 44.7% (2023: 100%). The development from last year was due to a change in the calculation for Taxonomy-eligible OPEX. proportions of eligible and aligned activities within the EU Taxonomy, based on key performance indicators for turnover, capital expenditures (CAPEX), and operational expenditures (OPEX). Proportion of CAPEX/total CAPEX % Taxonomy-aligned per objective Taxonomy-eligible per objective CCM - 20.8% CCA - 20.8% WTR - - CE - 54.0% PPC - - BIO - - Proportion of OPEX/total OPEX % Taxonomy-aligned per objective Taxonomy-eligible per objective CCM - - CCA - - WTR - - CE - 44.7% PPC - - BIO - - 102 Contents Eligible activities The assessment of the technical screening criteria for each About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices of the potentially eligible activities, as specified in the Commission Delegated Regulation (EU) 2021/2139 and its amendments, concludes that AutoStore, as a technology company that develops order-fulfillment solutions, performed the following eligible activities in 2024. AutoStore has not identified substantial activities that does not relate to the EU Taxonomy list of activities. The primary objective for AutoStore’s eligible activities mainly relates to Climate Change Mitigation (CCM) and Circular Economy (CE). From the 2023 EU Taxonomy report, two new eligible activities have been added for 2024: – CCM/CCA 7.4 Installation, maintenance, and repair of charging stations for electric vehicles in buildings – CCM 7.7 Acquisition and ownership of buildings Taxonomy sector Code Taxonomy activity Relevance to AutoStore Construction and real estate activities CCM 7.4 CCA 7.4 Installation, maintenance, and repair of charging stations for electric vehicles in buildings AutoStore has initiated the installation of electric vehicle chargers in its office buildings to facilitate use of electric vehicles for employees and visitors. Construction and real estate activities CCM 7.7 Acquisition and ownership of buildings AutoStore leases several properties to support operational needs, including office spaces and production sites essential for its business activities. Transport CCM 6.5 CCA 6.5 Transport by motorbikes, passenger cars, and light commercial vehicles The transportation of AutoStore’s products to end users is handled by third- party logistics providers, while the company manages its own transportation for employee commutes and internal logistics. This includes the use of both leased and owned company vehicles for transporting staff, materials, and other business-related items. Manufacturing CE 1.2 Manufacture of electrical and electronic equipment AutoStore designs, manufactures, and assembles modules in the AutoStore system. This includes a range of essential electronic equipment, such as Robots, Ports, and Controller units, all of which are critical to ensuring the efficient operation of its automation systems. Information and communication CE 4.1 Provision of IT/OT data- driven solutions AutoStore develops and delivers software designed to optimize warehouse operations. Utilizing sophisticated data algorithms, the software continuously calculates and adjusts the most efficient paths for its Robots. Services CE 5.2 Sale of spare parts AutoStore supplies spare parts, ensuring the continued functionality and longevity of the systems provided. Services CE 5.5 Product-as-a-service and other circular use- and result-oriented service models AutoStore’s automated fulfillment technology offers the option to lease the system through a pay-per-pick model. The pay-per-pick model involves an upfront payment for the warehouse Grid infrastructure, along with a recurring subscription fee for Robots, Ports, and software, based on order volume. Pio, a subsidiary of AutoStore, provides a streamlined warehouse automation solution for smaller operations through a leasing model. 103 Contents Alignment assessment AutoStore has assessed the following eligible economic About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices activity as aligned and therefore environmentally sustainable according to the EU Taxonomy regulation: – Installation, maintenance, and repair of charging stations for electric vehicles in buildings The following section provides details on AutoStore’s assessment process and considerations regarding Taxonomy-aligned activities. ‘Substantial Contribution’ criteria ‘Substantial Contribution’ set out the criteria for determining that a specific economic activity furthers the Taxonomy’s environmental objectives. Most of the screening criteria are not met for AutoStore’s eligible economic activities. The primary reason for non-alignment mainly relates to instances such as: Lack of recycled material in the packaging of products, lack of available necessary detailed documentation to meet criteria, or respective labeling not relating to AutoStore products. ‘Do No Significant Harm’ criteria ‘Do No Significant Harm’ set out the criteria for determining that a specific economic activity does not impair any other environmental objective in the act. Economic activities have to be carried out in compliance with the minimum safeguards that mainly relate to human rights and labor standards but also cover the topics of corruption, fair competition, taxation, and controversial weapons. Physical climate risk assessment When assessing the alignment of eligible economic activities introduced in the Climate Delegated Act, the generic DNSH criteria for climate change adaptation states that a physical climate risk assessment should be conducted for the eligible activity and that adaptation solutions should be identified. A comprehensive physical climate risk assessment has therefore been conducted to evaluate the potential impacts of climate change on AutoStore’s operations across multiple global locations. This assessment aligns with the EU Taxonomy Regulation (Regulation (EU) 2020/852) and adheres to the Technical Screening Criteria outlined in the Climate Delegated Act (Commission Delegated Regulation (EU) 2021/2139) for substantial contribution to climate change adaptation. It also follows the EU Guidelines on Reporting Climate-Related Information. The assessment is based on AutoStore’s eligible activities in 2024. In addition, it also addresses the following activities: Installation, maintenance and repair of energy efficiency equipment and Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings. These activities are not assessed as eligible for AutoStore in 2024. The reason they have been included is to take into account possible future projects. In line with the DNSH criteria under the EU Taxonomy, this assessment identifies potential climate risks and provides a basis for strategic climate adaptation planning. It supports AutoStore in strengthening resilience across its operations by informing risk mitigation strategies, investment decisions, and long-term sustainability efforts. This will ensure the business remains aligned with the EU’s sustainability and climate adaptation objectives while reducing exposure to physical climate risks in the coming decades. ‘Minimum Safeguard’ criteria ‘Minimum Safeguard’ is a component of the EU Taxonomy Regulation and ensures that investments or activities classified as Taxonomy-aligned adhere to minimum governance standards and uphold social norms, including human and labor rights. Although these requirements are only required on a company level, AutoStore has conducted an assessment for each eligible activity and documented adherence to the criteria. 104 Contents Accounting policies General reporting principles The EU Taxonomy defines turnover, capital expenditure About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices (CAPEX), and operating expenditure (OPEX) as key performance indicators (KPIs). The numerators of the CAPEX and OPEX KPIs do not include investments associated with a CAPEX plan, as such a plan has not yet been established by AutoStore. Turnover AutoStore defines turnover as the total of revenue and other operating income, consisting of the revenue from contracts with customers and net freight income, as presented in the consolidated statement of comprehensive income. AutoStore’s eligible turnover is the part of the “revenue from contracts with customers” generated through the manufacturing of electrical and electronic equipment, the provision of IT/OT data-driven solutions, the sale of spare parts, and the product-as-a-service models, as presented in note 2.1 of the consolidated statement of comprehensive income. Capital expenditure (CAPEX) AutoStore defines CAPEX as the additions to non-current and current assets following the IFRS definition of capital expenditure, as presented in notes 3.1, 3.2 and 3.4 of the consolidated statement of financial position. AutoStore’s eligible CAPEX is the CAPEX related to the long-term lease and purchase of company cars, the research and development of Robots, Ports, Controller units, and software, as well as investments in the AutoStore system related to product-as-a-service models. The economic activity acquisition and ownership of buildings of the Climate Delegated Act also covers leased real estate and AutoStore recognizes the leased asset as a right-of-use asset and has been reported as a CAPEX denominator. Operating expenditure (OPEX) AutoStore defines OPEX as the sum of employee benefit expenses and other operating expenses directly related to research and development, as well as the maintenance, repair, and day-to-day servicing of property and equipment. AutoStore’s eligible OPEX relates to the operating expenses directly related to the research and development of Robots, Ports, Controller units, software, and the product- as-a-service models. Double counting AutoStore prevents double counting across economic activities through a comprehensive review process that ensures each activity is accounted for only once. This involves cross-referencing financial data and clearly defining and categorizing activities to avoid overlap. This approach ensures that the financial numbers are not counted more than once. What’s next The EU Taxonomy aims to gradually introduce additional economic activities under its regulation. AutoStore will therefore continue to follow the advancement of the EU Taxonomy closely and conduct new eligibility screenings when additional activities are introduced. Furthermore, new eligibility screenings will be conducted when AutoStore starts to perform additional economic activities that are not performed to this date. Nuclear/fossil activity Nuclear energy related activities 1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. No 2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. No 3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. No Fossil gas related activities 4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. No 5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. No 6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. No 105 Contents Turnover 2024 Substantial contribution criteria DNSH criteria Economic activities Codes Turnover Proportion of turnover, 2024 Climate mitigation Climate adaptation Water Circular economy Pollution prevention Biodiversity Climate mitigation Climate adaptation Water Circular economy Pollution prevention Biodiversity Minimum safeguards Proportion of Taxonomy aligned (A.1) or eligible (A.2) turnover, 2023 Category enabling activity Category transitional activity USD % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N Y;N Y;N Y;N Y;N Y;N Y;N % E T A. Taxonomy-eligible activities A.1 Environmentally sustainable activities (Taxonomy-aligned) Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) CCA 7.4/ CCM 7.4 - - Y Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y - E Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) - - - - - - - - Y Y Y Y Y Y Y - Of which enabling - - - - - - - - Y Y Y Y Y Y Y - E Of which transitional - - - - T A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL Acquisition and ownership of buildings CCA 7.7/ CCM 7.7 - - EL EL N/EL N/EL N/EL N/EL - Manufacture of electrical and electronic equipment CE 1.2 363.9 60.5% N/EL N/EL N/EL EL N/EL N/EL - Product-as-a-service and other circular use- and result-oriented service models CE 5.5 6.3 1.1% N/EL N/EL N/EL EL N/EL N/EL - Provision of IT/OT data-driven solutions CE 4.1 25.2 4.2% N/EL N/EL N/EL EL N/EL N/EL - Sale of spare parts CE 5.2 31.4 5.2% N/EL N/EL N/EL EL N/EL N/EL - Transport by motorbikes, passenger cars and light commercial vehicles CCA 6.5/ CCM 6.5 - - EL EL N/EL N/EL N/EL N/EL Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 426.9 71.0% - - - 71.0% - - - A. Turnover of Taxonomy eligible activities (A.1 + A.2) 426.9 71.0% - - - 71.0% - - - B. Taxonomy-non-eligible activities Turnover of Taxonomy-non-eligible activities (B) 174.5 29.0% Total (A + B) 601.4 100.0% About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Y Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective. N No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective. N/EL Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective. EL Eligible, Taxonomy-non-eligible activity for the relevant environmental objective. 106 Contents CAPEX 2024 Substantial contribution criteria DNSH criteria Economic activities Codes CAPEX Proportion of CAPEX, 2024 Climate mitigation Climate adaptation Water Circular economy Pollution prevention Biodiversity Climate mitigation Climate adaptation Water Circular economy Pollution prevention Biodiversity Minimum safeguards Proportion of Taxonomy aligned (A.1) or eligible (A.2) CAPEX, 2023 Category enabling activity Category transitional activity USD % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N Y;N Y;N Y;N Y;N Y;N Y;N % E T A. Taxonomy-eligible activities A.1 Environmentally sustainable activities (Taxonomy-aligned) Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) CCA 7.4/ CCM 7.4 - - Y Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y - E CAPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1) - - - - - - - - Y Y Y Y Y Y Y - Of which enabling - - - - - - - - Y Y Y Y Y Y Y - E Of which transitional - - - - T A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL Acquisition and ownership of buildings CCA 7.7/ CCM 7.7 15.1 20.7% EL EL N/EL N/EL N/EL N/EL - Manufacture of electrical and electronic equipment CE 1.2 20.8 28.5% N/EL N/EL N/EL EL N/EL N/EL - Product-as-a-service and other circular use- and result-oriented service models CE 5.5 3.7 5.1% N/EL N/EL N/EL EL N/EL N/EL - Provision of IT/OT data-driven solutions CE 4.1 14.9 20.4% N/EL N/EL N/EL EL N/EL N/EL - Sale of spare parts CE 5.2 - - N/EL N/EL N/EL EL N/EL N/EL - Transport by motorbikes, passenger cars and light commercial vehicles CCA 6.5/ CCM 6.5 0.1 0.1% EL EL N/EL N/EL N/EL N/EL - CAPEX of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 54.5 74.8% 20.8% 20.8% - 54.0% - - - A. CAPEX of Taxonomy eligible activities (A.1 + A.2) 54.5 74.8% 20.8% 20.8% - 54.0% - - - B. Taxonomy-non-eligible activities CAPEX of Taxonomy-non-eligible activities (B) 18.4 25.2% Total (A + B) 72.9 100.0% About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Y Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective. N No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective. N/EL Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective. EL Eligible, Taxonomy-non-eligible activity for the relevant environmental objective. 107 Contents OPEX 2024 Substantial contribution criteria DNSH criteria Economic activities Codes OPEX Proportion of OPEX, 2024 Climate mitigation Climate adaptation Water Circular economy Pollution prevention Biodiversity Climate mitigation Climate adaptation Water Circular economy Pollution prevention Biodiversity Minimum safeguards Proportion of Taxonomy aligned (A.1) or eligible (A.2) OPEX, 2023 Category enabling activity Category transitional activity USD % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N Y;N Y;N Y;N Y;N Y;N Y;N % E T A. Taxonomy-eligible activities A.1 Environmentally sustainable activities (Taxonomy-aligned) Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) CCA 7.4/ CCM 7.4 - - Y Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y - E OPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1) - - - - - - - - Y Y Y Y Y Y Y - Of which enabling - - - - - - - - Y Y Y Y Y Y Y - E Of which transitional - - - - T A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL Acquisition and ownership of buildings CCA 7.7/ CCM 7.7 - - EL EL N/EL N/EL N/EL N/EL - Manufacture of electrical and electronic equipment CE 1.2 0.9 29.4% N/EL N/EL N/EL EL N/EL N/EL - Product-as-a-service and other circular use- and result-oriented service models CE 5.5 0.2 5.9% N/EL N/EL N/EL EL N/EL N/EL - Provision of IT/OT data-driven solutions CE 4.1 0.3 9.4% N/EL N/EL N/EL EL N/EL N/EL - Sale of spare parts CE 5.2 - - N/EL N/EL N/EL EL N/EL N/EL - Transport by motorbikes, passenger cars and light commercial vehicles CCA 6.5/ CCM 6.5 - - EL EL N/EL N/EL N/EL N/EL - OPEX of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 1.4 44.7% - - - 44.7% - - - A. OPEX of Taxonomy eligible activities (A.1 + A.2) 1.4 44.7% - - - 44.7% - - - B. Taxonomy-non-eligible activities OPEX of Taxonomy-non-eligible activities (B) 1.8 55.3% Total (A + B) 3.2 100.0% About Shareholder Information Board of Directors Report Sustainability Statements General Environment E1 Climate Change E5 Resource Use and Circular Economy EU Taxonomy Social Governance Appendices Corporate Governance Report Financial Statements Appendices Y Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective. N No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective. N/EL Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective. EL Eligible, Taxonomy-non-eligible activity for the relevant environmental objective. 108 Contents Social About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices 109 Contents S1 Own Workforce About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Introduction 110 Human and Labor Rights 111 Working Conditions 112 Equal Treatment and Opportunities for All 121 Engaging with Own Workforce 129 Remediation and Channels to Raise Concern 130 Metrics 131 110 Contents Introduction About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Impacts, risks, and opportunities The following sections present our material impacts, risks, and opportunities structured by the standard’s sub-topics along with our approach and policies for addressing these areas. A summary of our general approach and policies related to this topical chapter follows on the next page, and relates to several of the presented impacts, risks, and opportunities presented herein. Further, on each presented impact, risk, and opportunity, we also outline actions and initiatives we have or are planning to implement to: – Mitigate or prevent negative impacts or risks, and – Emphasize positive impacts and opportunities. AutoStore has not yet established specific ESG related targets. As a result, current actions and initiatives are not formally aligned with predefined objectives. For more information, read more here. As we have not yet defined a transition plan, we have not identified any material impacts on our own workforce arising from this. AutoStore may seem to be all about Robots, but our people and everyone involved in our value chain drive AutoStore’s development and growth. We are building an AutoStore community where we innovate to make life easier for our customers, distribution partners, and everyone who needs to store and move things. We do this by constantly moving forward, always caring, staying reliable, and acting as one. Key policies in this chapter Code of Conduct Human Rights Policy Human Resources Policy Responsibility Read more here on how our policies are managed Availability Externally available on our website All our employees have been included in the scope for the following discussions, hence all our employees may be subject to material impacts by AutoStore’s operations. This includes permanent employees and non-employees, as defined by ESRS. When assessing impacts, risks, and opportunities for ESRS S1 Own Workforce, the primary focus has been stakeholder engagement with our own employees. To facilitate adequate engagement, AutoStore utilizes several processes for continuous interaction. Important arenas for engaging with AutoStore’s employees are regular “all employee” meetings, employee surveys, and annual performance reviews. These arenas have been supported by internal stakeholder workshops with department heads, internal topical experts, and convening working environment committee meetings. Another key element in identifying material issues has been evaluating AutoStore's overall strategy and business model to ascertain potential impacts on employees resulting from our operations. We have taken into account our understanding of our own workforce and how people with particular characteristics, those working in particular contexts, or those undertaking particular activities may be at greater risk of harm. The production facilities in Poland and Thailand have the highest number of recorded incidents in the company, which is expected as this is where most physical work takes place. Furthermore, we acknowledge that persons with disabilities may have other challenges to consider when establishing new offices and facilities. These topics are discussed later in this chapter. 111 Contents Human and Labor Rights Our approach and policies About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices We recognize human rights as fundamental principles for protecting individual well-being and promoting fairness and respect throughout our operations, with our business partners, and within the communities we serve. Read our Global Human Rights Statement. AutoStore is committed to meeting its responsibility to respect human rights, as defined by the UN Guiding Principles on Business and Human Rights. Our Human Rights Policy details how we require that all involved parties in our business conducts are treated fairly and that their rights are respected. The policy is aligned with our Code of Conduct. Wherever we operate, we shall comply with local laws and regulations, and cooperate with the relevant authorities in respecting and promoting internationally declared human rights. Our Human Rights Policy applies to the AutoStore group’s employees and any third party acting on behalf of AutoStore. It also applies, as far as is reasonably achievable, to our upstream and downstream supply chain. The policy is guided by international human rights principles encompassed by the Universal Declaration of Human Rights, including those contained within the International Bill of Rights and the ILO Declaration on Fundamental Principles and Rights at Work. Furthermore, AutoStore supports the OECD guidelines for multinational enterprises and the UN Guiding Principles (UNGP) approach to due diligence, which recognizes the need to have processes in place to identify, prevent, mitigate, and account for how the impacts on human rights are addressed. We actively monitor compliance with these international standards through defined processes and mechanisms, ensuring that our practices respect and protect the rights of all employees. We prioritize the fundamental rights of our employees, fostering a fair, safe, and supportive work environment where labor rights are upheld without compromise. We are committed to open, ongoing dialogue with our employees, involving them in decision-making processes that impact their work and well-being. Should any human rights impacts arise, we have established measures to provide or facilitate effective remediation, ensuring that our employees have access to fair and timely solutions. This commitment to transparency and proactive engagement in human rights matters underlines our corporate culture and aligns our operations with globally recognized standards. Furthermore, child labor is strictly prohibited and AutoStore respects children’s rights to education and development. Suppliers are prohibited from employing children in violation of the International Labour Organization. Hazardous work is forbidden for anyone under the age of 18 to protect their health, safety, and development. AutoStore shall under no circumstances use, promote, or otherwise encourage the use of forced labor and any form of human trafficking. These matters are addressed in our Human Rights Policy. Our Human Rights Policy states that we shall strive to create workplaces in which open and honest communications among all employees are valued and respected. If any employee believes that someone is violating the policy or the law, they are asked to report it immediately to their local manager, HR, or our Legal Counsel. Employees can also report suspected policy violations through our whistleblowing channel. AutoStore shall report to the public on human rights related commitments, efforts, and statements, consistent with our Human Rights Policy, as part of our Human Rights Statement and these annual Sustainability Statements. 112 Contents Working conditions Working time Pressure on certain employees to deliver within short time horizon and/ or work outside regular hours Negative impact About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Value chain Own operations Impact AutoStore employees Connection to strategy and business model Aligned with our business model and strategy, our workforce plays a crucial role in driving innovation and fostering growth. Impact results from a high-speed working environment and is caused by our own business model and strategy Time horizon Current impact is expected to be reduced in the medium-term horizon resulting from actions and initiatives taken in 2024. However, we recognize that this negative impact may take time to fully mitigate We recognize a challenge and an actual negative impact arising from the pressure on certain employees to meet tight deadlines or work outside regular hours. This situation can contribute to stressed workers, decreased engagement, compromised work quality, and potentially higher turnover rates. As a global organization headquartered in Norway, the international nature of the company adds further complexity, with employees across different time zones sometimes feeling compelled to work outside regular hours to align with headquarters. We consider the negative impact to be isolated and incidental, rather than widespread or systematic. Our approach and policies AutoStore is dedicated to providing a fair and safe working environment for all our employees. Our Human Rights Policy details business conduct related to working conditions and hours. Actions and initiatives Tone from the top – founding principles Our Human Rights Policy establishes clear expectations and sets the tone from the top, addressing business conduct related to working hours, and explicitly states that working hours and overtime must comply with applicable laws and regulations. Anonymous whistleblowing channel For more information on our whistleblowing channel and how this is managed and reported, read more about business conduct in AutoStore. 113 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Actions and initiatives continued Policies and founding principles are easily accessible A dedicated section on AutoStore’s intranet, easily accessible to all employees, focuses on corporate governance and business conduct. This page prominently features key policy documents and internal procedures and processes to ensure that all employees are informed and have easy access to relevant information of the company's standards and practices. While some of this information is already available in several languages, we plan to translate additional documents in 2025, specifically into Polish and Thai. This will ensure that all employees can fully understand and engage with the content, supporting our global operations. The dedicated section on our intranet also offers a channel for raising concerns, ensuring that employees can report any issues or violations promptly and confidentially. Furthermore, our external webpage includes our key governing documents and are available to all. Transparent communication AutoStore fosters an open-door policy and encourage employees to share their questions, concerns, suggestions, or complaints with someone who can address them properly. This includes informal communication and formal reporting on concerns. We prioritize engaging with our employees to gain valuable insights into their satisfaction and perspectives, including assessments of workload and working hours. For more information on our engagement with our employees and how we assess and address areas for improvement, read more here. This regular follow-up allows employees to share feedback and helps the company identify areas for improvement and implement necessary changes. Increased regionalization To reduce reliance on the headquarters’ time zone and mitigate the need for employees to adjust their schedules, AutoStore has, in recent years, increasingly regionalized its operations by adding more on-site resources and roles. This regional expansion empowers local decision-making, reducing the necessity for employees to work according to CET time. This regionalization initiative included establishing a new U.S. office in 2024. The new office is a step toward enhancing support for employees in the Americas, providing resources and structure for a sustainable work-life balance across global locations. Time tracking and overtime follow-up For employees with contracts that include overtime, primarily those in non-leadership positions, all hours are recorded by the employee in our global human capital management system, Workday, and monitored by their respective managers and HR Business Partners to ensure compliance with local labor laws. HR Business Partners follow up with team managers to ensure they track their teams’ workload and address any necessary measures if issues arise. Furthermore, People Operations quarterly produces an Organizational Health Report that includes measures on overtime registrations and unused vacation days. Consequently, AutoStore regularly assesses the need for additional hiring and workload restructuring, especially when employees face extended periods of long hours. While progress is ongoing, AutoStore acknowledges the need for further structuring and recruitment to fully realize this approach in the medium-term perspective. Commitment to work-life balance Closely linked to our positive impact outlined below, we recognize the importance of work-life balance and have implemented several initiatives to support the well-being of our employees. Among other things, this includes flexible working hours. 114 Contents Working conditions Work-life balance About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Commitment to healthy work-life balance Positive impact Value chain Own operations Impact AutoStore employees Connection to strategy and business model Aligned with our business model and strategy, our workforce plays a crucial role in driving innovation and fostering growth. Commitment to our own workforce is founded in our values Time horizon We are committed to maintaining the presented current actions and initiatives in the future Employees are the backbone of AutoStore, and their satisfaction and engagement play a vital role in the success of our business. Engaging with our own workforce and workers’ representatives is therefore high on the agenda. We want ‘AutoStorians’ to feel seen, valued, and appreciated, and have several actions in place to enhance work-life balance. These initiatives are seen as an actual positive impact for our own workforce. This includes all our employees, regardless of contract type. Our approach and policies Our Human Resources Policy underscores the importance of work-life balance in AutoStore. We believe that supporting work-life balance enhances job satisfaction, strengthens employee loyalty, and increases productivity. To this end, we promote flexible working arrangements wherever possible, including flexible hours, compressed workweeks, remote work options, career breaks, and several childcare support options. Actions and initiatives Applicable actions and initiatives presented here: – Anonymous whistleblowing channel – Policies and guiding principles are easily accessible – Transparent communication 115 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Actions and initiatives continued Tone from the top – founding principles Our Human Rights Policy establishes clear expectations and sets the tone from the top, addressing the importance of a healthy balance between employees’ personal and professional lives. Employee benefits program We have several initiatives to encourage a healthy work- life balance for our employees. One of them are ‘OneAutoStore’. Its purpose is to make employees feel seen, valued, and appreciated. AutoStore’s aim is to provide benefits promoting a healthy lifestyle through subsidized active clothing, travel, and memorable experiences, tailored to fit their unique selves, regardless of location or role. This commitment lies in creating flexible and choice-oriented offers and policies. Through the ‘OneAutoStore’ program, we offer exercise and wellness benefits, including subsidized sports memberships and paid exercise time during working hours. From 2025, AutoStore is making some adjustments to the employee benefits program based on feedback from our employees, including travel benefits provided through partnership with GoGift, allowing employees to enjoy experiences outside of work. Furthermore, we collaborate with WONE, a precision health platform, to help reduce stress, improve overall health, and enhance happiness in the workplace. Flexible working hours We provide flexible working hours and office policies designed to support our employees in achieving a practical and well-balanced work-life harmony. By offering flexible working hours and supportive office policies, including remote working and flexible home office policies, we aim to foster a productive and satisfied workforce and these initiatives are expected to enhance employee well-being, increase engagement, and promote long-term retention. Parental leave to all employees, regardless of legislation AutoStore provides parental leave to all employees, regardless of their eligibility under local legislation. This policy reflects our commitment to supporting employee well-being and fostering an equitable workplace, ensuring all team members can prioritize family life without concern for regional legal limitations. 116 Contents Working conditions Health and safety About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Work-related incidents Negative impact Value chain Own operations Impact AutoStore employees Connection to strategy and business model Aligned with our business model and strategy, our operational workforce plays a crucial role in delivering quality in a timely manner. Potential impact may result from our high-speed working environment and can be caused by our own business model and strategy Time horizon Current potential risk with long-term time horizon following our nature of business and the nature of impact Work-related injuries to date have been few and non-serious. However, we acknowledge that the consequences of serious injuries could be severe. As we expand our operations with new production facilities, it is essential for AutoStore to remain diligent in implementing health and safety practices to uphold a good record. An incident in our workplace will always be important to us and the matter is consequently seen as a potential negative impact. We deem the negative impact as neither widespread or systematic, but to be subject to potential individual incidents in nature. Our approach and policies Health, safety, and working environment (HSE) are of utmost importance in AutoStore. Our Code of Conduct states that no activity is important enough to be conducted with hazard to life and health. We are dedicated to ensuring all our employees have a safe and healthy working environment. We adhere to local working environment laws in all relevant countries, guided by internal HSE guidelines and employee handbooks – outlining work regulations, health, and safety standards. All subsidiaries in the group are responsible for securing and improving the working environment of their employees, and to ensure that they have the knowledge and time needed to exercise this responsibility. Our Human Rights Policy reaffirms AutoStore’s commitment to health and safety management, risk assessments, and continuous improvement plans. Furthermore, we closely monitor and analyze workplace accidents. AutoStore’s management systems comprehensively address occupational health and safety for all employees. This includes regular, documented health and safety training, provision of appropriate personal protective equipment, and safety- enhanced machinery and work equipment. We maintain safe physical environments, with factors such as building conditions, equipment safety, indoor climate, lighting, noise, and radiation all designed to support employee health and welfare. To ensure these standards, our HSE department conducts regular safety inspections across facilities and warehouses. 117 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Actions and initiatives Applicable actions and initiatives presented here: – Anonymous whistleblowing channel – Policies and guiding principles are easily accessible – Transparent communication Tone from the top – founding principles Our Code of Conduct establishes clear expectations and sets the tone from the top, providing guidance for business conduct related to health and safety. AutoStore shall operate in accordance with local working environment acts in all relevant countries, and we plan and act to prevent injuries and work systematically to manage risks. For more information on our Code of Conduct, read more here. ISO certification and HSE commitments In 2024, AutoStore Norway (headquarter) and Poland’s management system was certified in accordance with the ISO 45001 Occupational Health and Safety Management standard. Additionally, Norway, Poland, and Thailand were certified according to the ISO 14001 Environmental Management standard. We plan to continue this process in 2025 and beyond to maintain our commitment to workplace health and safety, ensuring that routines and guidelines effectively shape how we operate at AutoStore locations worldwide. To ensure compliance going forward, the quality assurance team has also defined an internal audit plan for 2025 including both production facilities. Furthermore, in 2024, we launched an initiative to close identified gaps in training for U.S. personnel to ensure compliance with the Occupational Safety and Health Act (OSHA). As part of the United States Department of Labor, OSHA works to ensure safe and healthy working conditions for employees by setting and enforcing standards across industries. All U.S. employees completed their mandatory training in 2024, and recurring trainings have been scheduled for next year. Safety inspections and trainings All incidents on site are investigated to ensure learning from each case with the aim of establishing long-term measures to avoid similar cases in the future, and to educate and inform employees on learning points. Monthly meetings ensure learnings from these investigations are shared between production facilities. We have completed regular safety inspections on our production-, training-, and research facilities in 2024. These regular inspections provide valuable feedback on areas that need attention and help drive continuous improvements in the workplace. In addition to focusing on the physical safety of our locations, these inspections create an important space for safety discussions with employees on-site, ensuring a two-way learning process. Furthermore, in 2024, we have completed information campaigns on work ergonomics, targeting office personnel, in particular. Ergonomic office equipment have also been made more available, both individual equipment and larger equipment for sharing in the office facilities. Additionally, employees have voluntarily participated in first aid training in 2024. Safety committees AutoStore encourages all workers to actively contribute to a better work environment for our employees and to speak up if they see anything hazardous in our work environment. We have established safety committees in our largest facilities, including those in Norway, the U.S., Poland, and Thailand. The Norwegian safety representatives attend the Working Environment Committee (WEC) that is required by Norwegian law and are mandated to safeguard and proactively promote working conditions in all locations. The WEC in Norway meets quarterly to investigate and discuss non-conformances, findings, planned HSE activities, and sick-leave. The WEC consists of, in addition to the safety representatives, representatives from management, the HSE department, workplace services, and the external occupational health service Avonova. 118 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Committed focus on HSE AutoStore has in recent years grown its health, safety, and Accidents at work vs. lost working hours environment team and has three HSE specialists in Poland; one HSE specialist at the production facility in Thailand; one HSE/OSHA specialist in the US; one VP of Health, Safety, Security, and Environment (HSSE) located in Norway; and safety committees, as described. This development supports our focus on ensuring all our employees have a safe and secure work environment within which they can contribute to the success of their teams and the wider company. The location that first had a designated HSE specialist, and thus has worked systematically with reducing risks in the workplace the longest, is the production facility in Poland. The committed focus on safety culture, over time, is evident in the reported numbers. Over the past four years, the number of hours lost due to lost time injuries has consistently decreased. Notably, even between 2023 and 2024 – when the number of lost time injuries declined by just one – the total hours lost saw a significant reduction. This shows that the injuries we see are less serious than before and the employees recover more quickly, backed up by data showing the same decreasing trend in hours lost per injury. 119 Contents Working conditions Crisis management About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Risk of geopolitical conflicts affecting our employees Risk Value chain Own operations Connection to strategy and business model Aligned with our business model and strategy, the global operations of the group can require international travel for employees. Potential risk relates to travel in unsafe areas and can be caused by our own business model and strategy Time horizon Current potential risk with indefinite time horizon following the nature of risk Geopolitical conflicts are seen to heighten the risk for AutoStore's employees, particularly those potentially traveling to unsafe areas, increasing threats like physical harm and theft. This potential risk is mainly linked to service to be provided by AutoStore employees in high-risk countries at the end user’s AutoStore system site. Our approach and policies Our Human Resources Policy states that AutoStore shall establish and maintain processes to track employees on business travel. In the event of an emergency or accident, AutoStore shall be able to provide relevant travel information, including the destination, airline, flight details, and other pertinent information about employees on the move. Before any group travel, related risks and potential consequences must be evaluated. If a significant number of employees are traveling to the same destination simultaneously, consideration shall be given to dividing the group into smaller units. This protocol applies to all forms of travel, including accommodations. Actions and initiatives Applicable actions and initiatives presented here: – Anonymous whistleblowing channel – Policies and guiding principles are easily accessible – Transparent communication 120 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Actions and initiatives continued Tone from the top – founding principles Our Code of Conduct establishes clear expectations and sets the tone from the top, providing guidance for business conduct related to health and safety. For more information on our Code of Conduct, read more here about business conduct in AutoStore. Safety protocols and policies To safeguard employees, AutoStore enforces rigorous travel security protocols. These include thorough risk assessments, safety training, and emergency communication channels. By prioritizing safety and readiness, AutoStore mitigates geopolitical risks and protects its workforce in challenging environments. AutoStore has implemented structured routines to ensure preparedness for crisis situations. We are committed to continuously enhancing our ability to anticipate, manage, and prevent critical situations. To support this, we have established and regularly train a crisis management organization to handle a variety of crises. A comprehensive crisis management plan is established to aid the crisis management team in critical situations. The production facilities have local emergency preparedness plans according to local legislation and teams who train regularly in the identified scenarios. These plans are regularly updated to ensure preparedness in the event of a crisis, and learning points from trainings will be implemented. 121 Contents Equal treatment and opportunities for all Gender equality and equal work for equal pay About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Committed DEI strategy with concrete initiatives Positive impact Value chain Own operations Impact AutoStore employees Connection to strategy and business model Aligned with our business model and strategy, our workforce plays a crucial role in driving innovation and fostering growth. Commitment to our own workforce is founded in our values Time horizon We are committed to maintaining the presented current actions and initiatives in the future To enable a results-oriented and high-performing team filled with top talent we need to create a safe and inclusive space where people come as they are and bring all their ideas. Together we will create value through innovation and collaboration. Our DEI (diversity, equity, and inclusion) focus aims to attract and retain talent, drive innovation, and boost business performance. This focus resulted in a new DEI strategy in AutoStore in 2024. We believe that commitment to DEI creates a safe speak-up culture, where employees feel comfortable sharing ideas or thoughts, without fear of judgment or reprisal. This includes all our employees, regardless of contract type. Our approach and policies AutoStore works actively to create a working environment driven by diversity, equity, and mutual respect – where everyone shall have the same opportunity to contribute to AutoStore’s success and to realize their potential. Our Code of Conduct explicitly states that we do not tolerate any form of discrimination or marginalization of any employees because of their race, skin color, age, sex, sexual orientation, ethnicity, disability, religion, political affiliation, trade union membership, ethnic origin, social origin, or marital status. Furthermore, we do not tolerate any form of harassment or actions that can be considered offensive or intimidating. We are dedicated to ensuring that equal opportunity principles are applied in all our procedures related to recruitment, training, development, and promotion of employees – we shall not discriminate or marginalize any employees in recruitment and employment processes, such as job applications, promotions, awards, access to training, job assignments, salaries, allowances, discipline, termination of employment, or retirement. AutoStore is committed to creating an inclusive environment where employees feel safe to be themselves and contribute their ideas for collaboration and value creation. These principles are rooted in our Code of Conduct and Human Rights Policy. 122 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Actions and initiatives Applicable actions and initiatives presented here: – Anonymous whistleblowing channel – Policies and guiding principles are easily accessible – Transparent communication Tone from the top – founding principles Our Code of Conduct establishes clear expectations and sets the tone from the top, and addresses our explicit statements on respect for all people and non- discrimination. For more information on our Code of Conduct, read more here about business conduct in AutoStore. New DEI strategy in 2024 We established our new DEI strategy in 2024 after a thorough process involving one-on-one interviews, focus groups, surveys, and workshops to comprehensively assess the organizational situation. The strategy outlines our commitments to DEI by measuring, monitoring, and tracking our progress on the matter in AutoStore. Our main short-term initiatives in our DEI work include: – Graduate recruitments – Track KPIs on gender balance in all hiring processes – Inclusive recruitments (review and adapt job titles, job descriptions, and candidate profiles) – Targeted employer branding campaigns – Offer mentorship programs – Communicate DEI goals internally and externally Our medium-term initiatives and activities include: – Diversity and unconscious bias training – Update of our Recruitment Policy – Review of our HR Policy with focus on workplace harassment protocols – Assessment of employee benefits and policies with focus on fair promotion procedures – Establish AutoStore Ministry of Culture – Utilize female tech networks, eg. ADA and ODA Hence, our focus will be on DEI in recruitment, diversity training, accessibility (reference is made to identified negative impact below), culture-ambassadors, data-driven DEI, and strategic policy review to ensure internal policies are compliant with our DEI goals and guidelines. Focused recruitment Efforts have been made to enhance recruitment processes by minimizing biases and promoting objectivity. Gender- specific KPIs have been integrated into internal recruitment strategies to support these goals, and we are developing these processes with a short-term perspective. Additionally, we leverage established and well-developed tools, such as aptitude and personality tests, to further reduce and eliminate biases in our hiring practices. 123 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Quarterly assessment from People Operations Each quarter, People Operations compiles an Organizational Health Report, which is shared with the executive management team and the Board of Directors. The report includes key DEI metrics, enabling us to monitor differences, trends, and gaps. These metrics cover areas such as gender distribution across teams, locations, and leadership roles, as well as data on average age and nationalities. Unconscious bias training As part of their onboarding process, all new leaders receive training on unconscious bias to promote awareness and inclusivity in their new role. This training also covers recruitment. Furthermore, AutoStore conducts internal and external surveys to assess maturity and inclusiveness levels – together with awareness campaigns during events such as Women’s Day, Pride Month, and World Mental Health Day. In Spring 2025, AutoStore plans to roll out a company-wide mandatory training program on diversity, ensuring all employees participate. Campaigns In March 2024, we launched a nationwide campaign called ‘Reference Man’, spotlighting the challenges posed by the underrepresentation of women in engineering. The campaign achieved a reach of over one million people. 124 Contents Equal treatment and opportunities for all Training and skills development About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Employee development and career progression Positive impact Value chain Own operations Impact AutoStore employees Connection to strategy and business model Aligned with our business model and strategy, our workforce plays a crucial role in driving innovation and fostering growth. Commitment to our own workforce is founded in our values Time horizon We are committed to maintaining the presented current actions and initiatives in the future AutoStore’s employees’ education, expertise, and skills are coupled with development and training – and the ability to collaborate and contribute to organizational goals shall be balanced by bold initiatives and humility. We believe transparent performance metrics enable our employees to drive their success. Being driven by lean processes, we have standardized our approach to evaluating employees, aligning assessments by managers and the company. These initiatives are seen as not only empowering employees to enhance their skills but also foster career growth within the organization. By prioritizing continuous learning and development, AutoStore is creating a supportive environment where employees can thrive and advance, aligning individual growth with the company’s strategic goals. This commitment reinforces a culture of growth and innovation, with the aim of contributing to employee satisfaction and retention. This includes all our employees, regardless of contract type. Our approach and policies Our Human Resources Policy details the importance of our investments in employee training and development to support our strategy and meet our business objectives and plans. By investing in employee development, we aim at not only boosting productivity and efficiency, but also enhance job satisfaction and retention of our employees. Actions and initiatives Applicable actions and initiatives presented here: – Anonymous whistleblowing channel – Policies and guiding principles are easily accessible – Transparent communication 125 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Actions and initiatives continued Tone from the top – founding principles Our Human Resources Policy establishes clear expectations and sets the tone from the top, and addresses the importance of AutoStore’s investments in employee training and development to support our strategy and meet our business objectives. We invest in employee training and development for building our capacity and capability to meet our business objectives and plans. People development process At AutoStore, we embrace a shared commitment to continuous development. As a company, we enable growth, encourage progress, and set clear expectations to maintain focus and drive success throughout the year. Our People Development process is structured around five essential components, conducted annually: Goal setting, huddles, mid-year check-in, year-end reviews, and development dialogues. Internal courses and continued education We ensure our employees are up-to-date and receive the necessary internal training courses where this is relevant for the different functions. Furthermore, our employees are eligible for financial assistance for continuing their education through an accredited program that offers growth in an area relevant for the individual’s current position or offers development that may lead to promotional opportunities. Legendary program The program was created for our industrial workforce, to ensure career development is available at every level of our organization. The program aims to develop the technical and soft skills of our blue-collar employees providing the foundations for becoming an expert in one of five chosen fields, focusing on team building, technical training, and innovative solutions for safety and sustainability. Participants gain experience through classroom learning, case studies, and knowledge games. English language courses are offered to promote global mobility. The program also offers certifications for technical trainers and training projects for assessors to conduct independent assessment sessions. Mentorship and coaching programs The program ‘MentorConnect’ is designed to foster professional growth, knowledge sharing, and collaboration across the company. The program offers all employees a unique opportunity to connect with experienced colleagues for guidance, advice, support in navigating their career paths and networking. Participation is voluntary. Furthermore, leadership and people development is of high priority in AutoStore, and we offer all managers certified business coaches through CoachHub – a leading digital coaching provider of coaching. Leadership programs Leadership involves guiding and coordinating groups of people to achieve a common goal. We believe that a higher rate of supportive leadership leads to improved overall work performance, lower turnover rates, and increased employee engagement. AutoStore offers an internal knowledge bank for leaders, a tool for easy identification of resources on various leadership topics. In 2024, AutoStore held its annual ‘Leadership Summit’ with a two-day seminar devoted to strategy and leadership training. Accelerator program AutoStore has invested in training programs to attract and train graduates. The AutoStore Acceleration program is an 18-month trainee program for newly graduated master’s students that enables them to learn and rotate in different parts of the organization. 126 Contents Equal treatment and opportunities for all Employment and inclusion of people with disabilities About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Partly failing to successfully employ and include persons with disabilities Negative impact Value chain Own operations Impact AutoStore employees Connection to strategy and business model Aligned with our business model and strategy, our workforce plays a crucial role in driving innovation and fostering growth. Impact results from our high- speed working environment and is caused by our own business model and strategy Time horizon Short-term perspective due to actions and initiatives set forth We have identified an actual negative impact on partly failing to successfully employ and include persons with disabilities because, in some locations, we have not been able to offer all employees physically accessible locations. Furthermore, we acknowledge that we have not yet offered subtitled all-employee meetings where relevant information to our employees are shared. These shortcomings can lead to misunderstandings and cause employees with disabilities to feel undervalued and excluded. We recognize that this may prevent AutoStore from reaping the benefits of enhanced diversity, improved company culture, and access to a broader talent pool. Furthermore, we identify that the lack of inclusion and support can ultimately result in lower employee morale and hinder the overall effectiveness and cohesiveness of the team. We consider the negative impact to be isolated and incidental, rather than widespread or systematic. Our approach and policies Our approach and policies described for the positive impact on committed DEI strategy with concrete initiatives apply to this impact. Actions and initiatives Applicable actions and initiatives presented here: – Anonymous whistleblowing channel – Policies and guiding principles are easily accessible – Transparent communication 127 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Actions and initiatives continued Initiatives following our new DEI strategy AutoStore's DEI strategy, which was established in 2024, includes impactful initiatives focused on creating a more accessible and inclusive environment. A key measure from our DEI strategy is the commitment to evaluating all company locations for accessibility in 2025, with plans to address identified gaps to ensure accessibility for everyone. Additionally, AutoStore is planning to include subtitles in all-employee meetings in 2025 to enhance inclusivity for employees with hearing impairments or language barriers. In late 2024, we prioritized summarizing published materials for our employees, including providing concise minutes from all-employee meetings in English. Regular follow-up on development through employee engagement To further embed our DEI values, questions related to this topic were included in the bi-annual Peakon employee survey in 2024, allowing ongoing feedback and monitoring of DEI progress across the company. Consequently, we regularly track feedback from our employees to ensure we can respond with the necessary measures. The initiatives taken in 2024, as described above, is a direct response to employee feedback. Read more about this survey here. Furthermore, in 2025, AutoStore plans to introduce questions related to this topic in our onboarding survey to gain insights into individual considerations that should be taken into account. Metrics AutoStore will not disclose the percentage of our own employees with disabilities as this matter is subject to legal restrictions on collection of data. 128 Contents Equal treatment and opportunities for all Other About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Accessibility and availability of information on employee’s rights Negative impact Value chain Own operations Impact AutoStore employees Connection to strategy and business model Aligned with our business model and strategy, our workforce plays a crucial role in driving innovation and fostering growth. Impact results from our high- speed working environment and is caused by our own business model and strategy Time horizon Medium-term perspective We acknowledge an actual negative impact stemming from limited access to clear information on employee rights, especially in newly established offices and locations. This lack of clarity can lead employees to mishandle certain situations, creating room for misunderstandings, grievances, and potential conflicts between employees and management. Such issues may lead to undermining trust in the company’s policies and practices, potentially impacting workplace morale and cohesion. We consider the negative impact to be isolated and incidental, rather than widespread or systematic. Our approach and policies Our approach and policies described in the introduction to this chapter on equal treatment and opportunities for all apply to this impact. Actions and initiatives Applicable actions and initiatives presented here: – Anonymous whistleblowing channel – Policies and guiding principles are easily accessible – Transparent communication Developing our information on our intranet AutoStore's HR and administrative departments are continuously enhancing and updating employee resources on the group’s intranet. This platform serves as a central hub for both global information and specific, region-based content, ensuring employees have accessible, relevant information tailored to their location. This includes Employee Handbooks tailored to each specific location where we operate. In 2024, HR refined several of these local handbooks, adopting a more global perspective in their development. The plan for 2025 is to further refine six more handbooks, mainly focusing on Europe and Thailand. High engagement and activity on our intranet confirms its effectiveness as a communication channel. By expanding information availability here, AutoStore aims to support clarity, prevent misunderstandings, and foster a well- informed workforce across all locations. 129 Contents Engaging with Own Workforce One of our values – transparent – highlights our About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices commitment to fostering open dialogue. We strive to be fair and easy to do business with. Transparency and open communication are present throughout our business, including in our interactions with employees. AutoStore’s employees’ satisfaction and engagement play a key role in the success of our business. We use the Workday Peakon Survey tool to provide employees with the opportunity to raise their voices and provide their feedback either anonymously or openly. Workday Peakon addresses various aspects of the workplace experience, including growth opportunities, freedom of opinion, equity, diversity, and inclusion, goal setting, and effective communication of change. The tool helps organizations gauge their progress, strengths, and areas for improvement by collecting and analyzing employee feedback. Workday Peakon insights allow us to measure key metrics such as the employee Net Promoter Score (eNPS). By leveraging these insights, we can prioritize initiatives that enhance the workplace experience and align our actions with our values, contributing to a culture of continuous improvement. Managers and HR teams use the Workday Peakon Manager Dashboard to analyze survey results and follow up on feedback from their teams and the organization. The dashboard provides detailed information about the drivers behind the scores and allows managers to engage in conversations with employees by acknowledging comments, initiating discussions, or adding internal notes. This interaction helps managers gain deeper insights and take quick actions to address issues. Additionally, the tool offers features like heat maps, suggested improvements, and micro-learnings to support data-driven decision- making. Results and actions are communicated through various channels, including all employee meetings, department and team meetings, and digital platforms. The overall results and key metrics from this survey were shared openly in all employee meetings held by the CEO and other leaders during 2024. Furthermore, managers are encouraged to use the Manager Dashboard to share detailed results with their teams and discuss action plans. Workshops and playbooks are also used to engage teams in their results and develop targeted action plans. This transparent communication ensures that employees are informed about the survey outcomes and the steps being taken to address their feedback. AutoStore also has its own employee representatives in several countries who frequently participate in discussions with management on matters such as salary negotiations, benefits, and pension schemes. Workday Peakon provides high degree of self-service and manager involvement, ensuring manager accountability and ownership. Peakon also provides strong analyzing functions, allowing HR and others to segment and monitor trends and results within vulnerable or marginalized groups in the company. All questions have comment fields, allowing employees to anonymously add comments and information. The survey also include questions on harassment. The Workday Peakon survey is conducted bi-annually, and the process is led by our CPO. The CPO has operational responsibility for ensuring engagement and that the results inform the undertakings further approach. Workday produces benchmarks consisting of data points from over 222 million unique surveys, all using the same model of engagement. Benchmarks are updated on a quarterly basis. AutoStore is ranked in the top 25% of tech companies with an employee net promoter score (eNPS) of 42, which exceeds the true benchmark by 15 points. 86% aggregated participation rate throughout 2024 95% of the people reported they can count on their coworkers to help when needed (scoring their peers 7 or higher) 92% of the people reported they get the support they need to complete their work from their manager (scoring their managers 7 or higher) 92% of the people reported that people of all backgrounds are accepted for who they are (scoring 7 or higher) 1 True benchmark = Benchmark takes the average engagement score as a starting point and adjust it based on the difference between AutoStore’s employee demographics to those of the benchmark. 2 Scale. Workday Peakon uses the scale from 1 to 10, where 10 is top score. 130 Contents Remediation and Channels to Raise Concerns AutoStore has both internal and external channels for About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices reporting concerns of non-compliance with our policies. Internally, we foster an open-door policy that encourages employees to share questions, concerns, and complaints with someone who can address them properly. This could be an employee’s line manager, or, depending on the circumstances of the issue, directly to HR via the CPO, the CEO, or the co-chairs of the Board of Directors. Employees has access to the relevant processes and procedures for these matters on our intranet. The Workday Peakon survey also serves as a platform for employees to voice their concerns. To ensure anonymity, a minimum of five responses are required before the feedback is shared with the relevant manager. Through the bi-annually employee survey, AutoStore also tracks how employees are aware of and trust that the necessary structures or processes for raising concerns work effectively. Externally, and available to all, the company uses a fully anonymous and untraceable whistleblowing channel. For more information on the process of raising concerns, the handling of such matters, and the protection of those raising concerns, read more about business conduct in AutoStore. 131 Contents Metrics Methodology and assumptions for data collection About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Employee data detailed in this section has been extracted from our human capital management (HCM) system, Workday, as of the end of the reporting period, December 31, 2024. All figures presented in the following sections relate to the total as of period-end, unless otherwise indicated. Number of employees is shown as headcounts as of the end of the reporting period, while the consolidated Financial Statements show the number of full-time employees (FTEs) for the same comparative period (read more here). The presented metrics have not been validated by an external body other than our auditor. Our employees AutoStore’s permanent workforce grew by 8.2% in 2024. The following tables details the characteristics of employees at AutoStore. During 2024, 75 people left AutoStore. This represented a 8.2% turnover rate. AutoStore’s employees (headcount) by gender Gender Number of employees Female 377 Male 690 Other 2 Not reported 13 Total employees 1,082 AutoStore’s employees (headcount) by region Country Number of employees Norway 384 Poland 377 Thailand 58 U.S. 128 Other 135 Total employees 1,082 132 Contents Non-employees AutoStore has a total of 10 non-guaranteed hours employees, meaning they are part- time employees, such as on-call substitutes or students. AutoStore’s employees (headcount) by contract type broken down by gender Female Male Other Not reported Total Number of employees 377 690 2 13 1,082 Number of permanent employees 277 630 2 8 917 Number of temporary employees 96 54 - 5 155 Number of non- guaranteed hours employees 4 6 - - 10 About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Diversity The table shows the gender distribution in numbers and percentages at the top management level in AutoStore. The top management level is defined as positions two levels beneath the administrative and supervisory body, hereunder the executive management team (EMT) and employees reporting directly to members of the EMT. Gender distribution of AutoStore’s top management Top management level Headcount in number Headcount in % Female 14 34.1% Male 27 65.9% Other 0 - Total 41 100% Age group distribution is detailed in the following table, including all employees as disclosed in previous tables. Age distribution of AutoStore’s employees Employee age groups Headcount in number Headcount in % <30 189 17.5% 30-50 770 71.2% >50 123 11.4% Total 1,082 100% 133 Contents Training and skills Gender distribution of employee participation in performance and career development review Gender Participation in % Average number of training hours per employee Female 32.9% 8.8 Male 47.3% 6.0 Other 0.2% 2.8 Not reported 1.7% 9.2 About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Health and safety Long-term proactive work has clear benefits, and AutoStore is seeing a decline in lost- time injuries. A systematic approach to hazard identification, risk assessments, and working guidelines is making our workplace safer each year. This work will continue to reach the target of zero lost-time injuries for personnel. Poland’s production facility records the highest number of incidents due to physical work demands. Continuous efforts to improve and educate employees are yielding positive results. 100% of our employees is covered by the AutoStore’s health and safety management system. Work-related fatalities and injuries Employees Non-employees Nr. of fatalities as result of work-related injuries and work-related ill health1 - - Nr. of recordable work-related accidents 9.0 1.0 Rate of recordable work-related accidents2 7.9 0.9 Nr. of cases of recordable work-related ill health3 - - Nr. of days lost to work-related injuries and fatalities from work-related accidents, work-related ill health and fatalities from ill health1 14.0 - 1 This number also includes other workers working on AutoStore sites. 2 Number of cases recorded in management non-conformance system divided by worked hours recorded in time management system. 3 Subject to legal restrictions on the collection of data. 134 Contents Work-life balance In AutoStore, all employees are entitled to take family-related leave as of December 31, 2024. The table below provides an overview of family-related leave taken throughout the year. Family-related leave Gender % Female 10.5% Male 5.7% Other - About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Remuneration The table below indicates salary distribution within AutoStore compared to gender and career levels. The gender pay gap is defined as the average pay levels between female and male employees, expressed as percentage of the average pay level of male employees. The annual total remuneration ratio is defined as the highest paid individual to the median annual total remuneration of all employees (excluding the highest paid individual). AutoStore’s salary distribution numbers are extracted from our human capital management (HCM) system, Workday, and followed by review to ensure data quality in terms of type of role, location, and seniority. Pay gap on gender Category Total The gender pay gap 96.7% The annual total remuneration ratio 4.2 Our Human Resources Policy covers details that all employees in AutoStore shall be paid an adequate wage compared to applicable benchmarks. The salary of employees shall always be at least in line with minimum wage or industry standard. Deductions from wages as a disciplinary measure shall not be permitted. 135 Contents Social protection All AutoStore employees are covered by social protection, through public programs or through benefits offered based on their location and applicable local regulations, against loss of income due to life events, including sickness, employment injury and acquired disability, parental leave, and retirement. About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Incidents, complaints, and severe human rights impacts In 2024, the whistleblowing team received four anonymous reports via SafeCall, covering general safety, unfair treatment, integrity, and policy. For more information on the concerns, read more here. No incidents of discrimination was reported. All four reports were promptly investigated in line with our Whistleblowing and Investigation Policy and are considered closed by AutoStore. No severe human rights incidents connected to AutoStore’s workforce were reported in 2024. Consequently, no fines, penalties, or compensation for damages were paid. 136 Contents S2 Workers in the Value Chain About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Introduction 137 Human and Labor Rights 138 Working Conditions 140 Engaging with Value Chain Workers 144 Remediation and Channels to Raise Concerns 145 Metrics 146 137 Contents Introduction About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Impacts, risks, and opportunities The following sections present our material impacts, risks, and opportunities structured by the standard’s sub-topics along with our approach and policies for addressing these areas. A summary of our general approach and policies related to this topical chapter follows on the next page, and relates to several of the presented impacts, risks, and opportunities presented herein. Further, on each presented impact, risk, and opportunity, we also outline actions and initiatives we have or are planning to implement to: – Mitigate or prevent negative impacts or risks, and – Emphasize positive impacts and opportunities. AutoStore has not yet established specific ESG related targets. As a result, current actions and initiatives are not formally aligned with predefined objectives. For more information, read more here. A resilient and sustainable supply chain is crucial for AutoStore’s operations and performance in meeting the company’s growth ambitions. AutoStore strives to maintain close dialogue and collaboration with its suppliers and distribution partners to encourage adherence to ethical, environmental, and social standards. As far as possible, AutoStore seeks to cooperate with suppliers with relevant ISO certifications. Key policies in this chapter Code of Conduct Human Rights Policy Supply Chain Business Ethics Code Responsibility Read more here on how our policies are managed Availability Externally available on our website This discussion focuses on our direct suppliers, hereunder suppliers AutoStore is in direct contact with, and our end customers – our distribution partners. We also take into account the end users of the AutoStore system. Read more about the definition used on our value chain. When assessing our impacts, risks, and opportunities in relation to ESRS S2 Workers in the Value Chain, we have focused on identifying and understanding value chain workers, reviewing internal supply chain management processes, conducting value chain due diligence, and engaging stakeholders, including suppliers and distribution partners. Additionally, our employees involved in value chain activities have contributed to these discussions and assessments. AutoStore aims to ensure that our strategy and business model does not contribute to adverse impacts on value chain workers. Consequently, to identify potential adverse impacts, we have assessed our own operations, including our processes for sourcing and enterprise risk management. Following the double materiality process and conducted assessments of impacts, risks, and opportunities, AutoStore identifies that the most at-risk part of our immediate value chain is related to the transportation of the AutoStore system. As part of our value chain due diligence, AutoStore has included considerations of potential impacts related to equitable treatment and opportunities, workers’ rights, and working conditions for workers within the value chain. 138 Contents Human and Labor Rights Our approach and policies About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices As discussed in chapter S1 Own Workforce, we recognize human rights as fundamental principles for protecting individual well-being and promoting fairness and respect throughout our operations and supply chain, with our distribution partners, and within the communities we serve. We expect the companies we work with to run their business and supply chain in compliance with national laws and regulations and with respect for international labor and human rights standards. AutoStore’s commitment to respect human rights are guided by internationally recognized human rights and labor standards, including those contained in the International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work. Our Human Rights Policy details how we require that all involved parties in our business conducts are treated fairly and that their rights are respected. The policy applies, as far as is reasonably achievable, to our whole value chain. Suppliers AutoStore’s Supply Chain Business Ethics Code, which will be replaced by an updated Code of Conduct for Business Partners in 2025, is aligned with our overall Code of Conduct and Human Rights Policy, and is based on the ILO standards and specifies our commitment to protecting human rights. The policy requires all of our suppliers to comply with our Supply Chain Business Ethics Code and implement it in their own supply chain. The policy is based on key frameworks that define human rights principles for business, including UN Guiding Principles on Business and Human Rights, OECD Guidelines for Multinational Enterprises, OECD Due Diligence Guidelines for Responsible Business Conduct, and the UN Global Compact’s Ten Principles. AutoStore has been a member of UN Global Compact since 2021. The Supply Chain Business Ethics Code addresses how AutoStore’s suppliers shall respect human rights and minimize the environmental impact their activities or companies may cause. The policy explicitly addresses prohibition of forced labor and child labor. Furthermore, the Code states that in case local legal requirements are less stringent than defined in international standards, suppliers are required to comply with the most up to date international standards. Procurement processes For the purpose of the double materiality assessment, we have categorized our suppliers in two categories – bill-of- materials (BOM) and non-bill-of-materials (non-BOM) suppliers (read more about our value chain). Our internal Procurement Policy outlines the process for entering into new contracts with BOM suppliers. This includes, but is not limited to, principles for competition, non- discrimination, treatment of conflict of interest, and confidentiality. AutoStore’s procurement process is detailed and documented within our quality management system. Certain BOM suppliers are screened by reference to AutoStore’s audit checklist, which covers topics such as management policies, quality management standards, finance, and product and process safety. During the assessments, AutoStore asks suppliers to submit all required documents to confirm compliance with the Supply Chain Business Ethics Code and audit requirements. All new suppliers must sign a non-disclosure agreement and undergo sanctions screening, along with other compliance risk assessments, through an external system provider to ensure adherence to our ethical and legal standards before entering into agreements. Additionally, they are required to complete a self-assessment questionnaire, acknowledging, and signing our Supply Chain Business Ethics Code. 139 Contents In 2024, the supplier management and legal teams have About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices focused on further enhancing and strengthening our contractual supplier agreement process towards BOM suppliers. Additionally, in 2024, we expanded our supplier sourcing team to integrate this developed process into our current Procurement Policy for non-BOM suppliers, ensuring alignment with the company’s principles for all our direct suppliers. This process has been followed for certain non-BOM suppliers to this date based on risk assessments. The process in development for new non- BOM suppliers or renewal of existing non-BOM supplier contracts will need to adhere to AutoStore’s Supply Chain Business Ethics Code and undergo the established processes going forward. Due diligence, screening, and risk assessments AutoStore works actively to comply with the demands and expectations set forth in the Transparency Act. The process of carrying out AutoStore’s due diligence is an ongoing effort and the company integrates the due diligence into existing assessments of its own operations, suppliers, distribution partners, and other business partners. This process is continuously under development. AutoStore supports the OECD guidelines for multinational enterprises and the United Nations Guiding Principles (UNGP) approach to due diligence, which recognize the need to have processes in place to identify, prevent, mitigate, and account for how the impact on human rights is addressed. AutoStore aims to follow the five-step model for due diligence, based on the OECD guidance. The five- step model lays the foundation for internal governing procedures and monitoring activities, overview of suppliers, and assessment of which poses the greatest risk. Reference is made to AutoStore’s Transparency Act Report for more information on how the company engages with suppliers, as well as processes, risk assessments, and due diligence. Our supplier due diligence expands upon previously conducted assessments, where AutoStore’s portfolio of suppliers was assessed and classified into different risk categories using DFØ’s list of high-risk products and the Norwegian Labor Inspection Authority’s overview of industries in Norway. Although these risks were specific to Norway, it was assumed that industries considered high- risk in Norway were likely considered high-risk in other countries. Other relevant elements in the risk assessment included geographical risk, type of service and product, complexity in the supply chain, and company structure. High-risk suppliers Aligned with the process described in relation to AutoStore’s work with the Transparency Act, identified high-risk suppliers may be subject to further desktop research, risk analysis, and supplier dialogue to address potential human rights issues. High-risk suppliers may also be subject to the following mitigating actions: – Supplier must sign the Supply Chain Business Ethics Code – Supplier must provide necessary reassurances that the identified potential human rights issue is addressed – Supplier must communicate AutoStore’s whistleblowing channel and its availability and function – Supplier must commit to answering AutoStore’s annual human rights due diligence surveys – Supplier must accommodate and participate in audits on human rights issues if AutoStore deems this necessary AutoStore’s process for conducting further due diligence related to high-risk suppliers identified from the surveys in our Human Rights Due Diligence Program has been tested and applied in 2024 and 2025. We aim to formalize this process in our internal management system in 2025. Distribution partners As described for our value chain, AutoStore currently has 23 end customers – our distribution partners. Forming partnerships with distribution partners involves a thorough due diligence processes, covering both commercial aspects and adherence to our standards for ethical business conduct, compliance, and sustainability. 140 Contents Human and labor rights Working conditions About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Pressure to deliver within short deadlines or at a low cost Negative impact Value chain Upstream and downstream Impact Value chain workers, especially suppliers and transporters Connection to strategy and business model AutoStore’s operations and business model relies on goods and services from transporters and suppliers. Short deadlines or comprehensive orders may lead to adverse impacts on working conditions Time horizon Current impact with long-term horizon following the nature of risk We recognize that suppliers and transporters, particularly those in Asia, may face pressure to meet tight deadlines, which can negatively impact working conditions and workers’ rights. This pressure may result in heightened stress, safety risks, reduced service quality, and strained business relationships. Our approach and policies AutoStore recognizes human rights as fundamental principles for protecting individual well-being and promoting fairness and respect throughout our operations and supply chain. We expect the companies we work with to run their business and supply chain in compliance with national laws and regulations and with respect for international human and labor rights standards. Our approach and policies described in the introduction to this chapter on human and labor rights apply to this impact. 141 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Actions and initiatives Tone from the top – founding principles Our relevant policies, including our Code of Conduct and Supply Chain Business Ethics Code, require that all involved parties in our business conducts are treated fairly and that their rights are respected. This lays the foundation for how we conduct business and what we expect from our business relations. AutoStore requires our suppliers to comply with our Supply Chain Business Ethics Code and implement it in their own supply chain. In 2025, we have revised and updated our Code of Conduct, ensuring that it reflects the latest standards and practices. As part of this update, we have also updated our Code of Conduct for Business Partners, which has incorporated elements from our current Business Ethics Supply Chain Code. The new Code of Conduct for Business Partners, to be approved by the Board of Directors in the first half of 2025, will replace the current Supply Chain Business Ethics Code. This initiative aims to strengthen alignment of expectations across our organization and throughout our value chain. Our external webpage includes our key governing documents and are available to all. Anonymous whistleblowing channel For more information on our whistleblowing channel and how this is managed and reported, read more about business conduct in AutoStore. Due diligence process in 2024 and 2025 As part of our ongoing supply chain due diligence and commitment to human rights protection, AutoStore initiated a renewed assessment of our suppliers in the fourth quarter of 2024. The assessment was conducted as a series of surveys where 395 suppliers were included in the scope of the first round of assessment. The first survey was distributed and initiated with the intention of identifying inherent human rights risks in our supply chain. Suppliers were asked to submit details about their industry and countries of business operation. Questions related to business operations included information on produced goods and country of production, as well as procured goods and country of procurement. Based on the results from the first survey, a risk assessment is conducted to include relevant suppliers to submit a more extensive survey. This work will continue throughout 2025. The objective of the second survey aims to contribute to an extensive review of our suppliers’ practices and policies and aims to ensure adherence to shared principles of responsible business conduct. The survey is planned to specifically address our suppliers’ commitments to conducting human rights due diligence, the outcomes of their own human rights risk assessments, and their processes for managing the mitigation and prevention of these risks. Additional topics for the planned assessment include grievance mechanisms and remediation commitments, working conditions, and assessments of supply chain labor rights. AutoStore has determined that the response rates received for the initial round of surveys present a clear opportunity for improvement, and increasing the response rate to the surveys will be a priority going forward. AutoStore will follow up on the responses and results of the survey in 2025 in accordance with our policies and procedures regarding human rights and working conditions. 142 Contents Human and labor rights Working conditions About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Violations of human rights and decent working conditions Risk Value chain Upstream and downstream Connection to strategy and business model AutoStore is dependent on its current supply chain in delivering the AutoStore system. As part of a global value chain, AutoStore faces risks due to limited transparency, particularly in the upstream part of the value chain. This potential risk may directly impact AutoStore’s operations, reputation, and performance Time horizon Current risk with long-term horizon following the nature of risk Transportation is deemed as a high-risk industry with significant risk of breaching decent working conditions and labor standards with regards to wage and contracts. Furthermore, hardware suppliers are key suppliers to AutoStore’s operations. We recognize a potential risk of negative impact on fundamental human rights and decent working conditions for workers and local communities in our value chain. This indirect risk is most prevalent in the part of our upstream supply chain where raw materials, such as metal, plastic, and electrical components are extracted and processed. These activities typically take place outside Europe in high- risk countries. We have zero tolerance for any form of human rights violations, including forced labor and child labor. The potential occurrence of such violations within the value chain poses a significant risk for the company. Our approach and policies AutoStore has zero tolerance for any form of human rights violations, including forced labor and child labor. AutoStore is part of a global supply chain, and there is Our approach and policies described in the introduction to this chapter on human and labor rights apply to this risk. partly limited transparency in the parts of our supply chain that are several tiers removed from our direct suppliers. Although our double materiality assessment in 2024 focused on direct suppliers for reporting purposes, this remains an important area for AutoStore and is included as a potential risk. While the risk is currently described at a high level, it underscores the significance of this matter to us. 143 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices Actions and initiatives Applicable actions and initiatives presented here: – Tone from the top – founding principles – Anonymous whistleblowing channel – Due diligence (transportation suppliers included in assessment) Improvement of procurement processes, including updated contractual agreements and risk assessments On the initiatives taken in 2024 and planned for 2025 described in our introduction in this chapter, AutoStore’s topical expert teams are actively involved in internal project groups focused on improving procurement processes for our direct suppliers to ensure alignment over human rights and working conditions. Their participation ensures that sustainability, social, and governance considerations relevant to our direct suppliers are systematically incorporated into more formalized assessments. In 2024, contractual agreements were revisited and updated and risk assessments were strengthened, with further enhancements planned for 2025. These efforts involved collaboration between the ESG teams, HR, and Legal to ensure comprehensive oversight and alignment with company standards. Beyond our direct suppliers For the purpose of assessments made in this first year of reporting in accordance with CSRD, the main focus relates to suppliers AutoStore is in direct contact with. While suppliers beyond our direct suppliers is a topic actively monitored and explored internally in AutoStore, we acknowledge that the full overview is still in its early stages. Given the potential risks, we have nonetheless chosen to include this part of the value chain in our assessment for transparency and due to its significant, potential impact, and because it is a topic of importance within AutoStore. AutoStore is actively working on enhancing its mapping and overview of indirect suppliers. AutoStore's current priority initiative for mapping indirect suppliers is the Conflict Minerals Program. This program is managed by an external service provider in collaboration with AutoStore’s supply chain and compliance teams. 144 Contents Engaging with Value Chain Workers AutoStore works with suppliers and subcontractors from About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices the raw material to the finished product phase which supply or produce goods, services, or other input factors as part of completion and delivery of the AutoStore systems. Examples include the provisions of aluminum profiles, electronic assembly, electric equipment, and machine parts relevant to AutoStore’s assembly facilities. Alongside conducting due diligence and risk assessments, AutoStore maintains direct engagement with several suppliers. The group uses a risk-based approach to engagement and has conducted audits through ESG questionnaires and surveys in 2023 and 2024. The survey conducted in 2024, along with the continued work in 2025, is further detailed under the potential negative impact as discussed in the preceding section. AutoStore aims to engage with stakeholders at least once annually, and conducts annual revisions of our value chain due diligence in alignment with reporting on the Transparency Act. AutoStore has 395 direct BOM suppliers delivering products or services directly linked to AutoStore’s own operations. Most components in the AutoStore system are sourced from multiple suppliers, while final assembly (the highest value-adding activity) is conducted in-house. AutoStore acknowledges the limitations and challenges in engaging with certain parts of our upstream value chain, particularly workers who are several tiers removed from our direct suppliers. As part of our due diligence and double materiality assessments, AutoStore has also assessed inherent risks identified in its downstream value chain relating to business partners and transporters. Furthermore, AutoStore maintains frequent engagement with distribution partners. As a result of our overall due diligence and double materiality process, AutoStore has concluded that the workers in our value chain that are most vulnerable to impacts are located in the part of our value chain relating to hardware suppliers and transporters. These issues are addressed in the preceding section. Besides the mentioned stakeholder engagement initiatives, AutoStore has not established a formal process to engage directly with this group of workers for their insights. AutoStore plans to enhance its engagement efforts in this going forward. The CPO has operational responsibility for ensuring that stakeholder engagement happens, and that the results inform AutoStore’s further approach. Other suppliers in the value chain such as consultants, office rent, IT software, and outsourced accounting are also monitored. These services are important for the day- to-day operations of the business, but not part of the core products or services sold by AutoStore. These suppliers are assessed to have a lower degree of risk exposure. 145 Contents Remediation and Channels to Raise Concerns About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices AutoStore encourages all stakeholders to report and express their concerns relating to our activities and suspected violations of our policies, including these statements. There shall be a low threshold for reporting unethical or illegal business conduct, and we do not tolerate any form of retaliation against anyone who has raised an ethical or legal concern in good faith. We are committed to ensuring that all reports are appropriately heard, investigated, and remediated as required. We provide a fully anonymous and untraceable whistleblowing channel. This channel is accessible to both internal and external stakeholders. For more information on the process of raising concerns, the handling of such matters, and the protection of those raising concerns, read more about business conduct in AutoStore. AutoStore supports the availability of such channels in the workplace of value chain workers, but have not formalized a requirement for this to be in place. AutoStore’s own whistleblowing channel and grievance mechanisms are also available for third parties. AutoStore aims to strengthen the awareness of this channel for value chain workers in its continuous work to ensuring trust in these structures. In cases of identified actual negative impacts, the supplier shall inform AutoStore without undue delay of any violation of the principles of the Supply Chain Business Ethics Code, or of such presumptions, as well as provide the recovery plan to remedy such violation, that AutoStore will be able to accept. In addition, AutoStore has the right, to the extent permitted by applicable law, to conduct individual assessments and tests, to a reasonable extent, to confirm that the supplier complies with the Supply Chain Business Ethics Code. 146 Contents Metrics AutoStore has not identified reported actual negative About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social S1 Own Workforce S2 Workers in the Value Chain Governance Appendices Corporate Governance Report Financial Statements Appendices impacts on fundamental human rights and decent working conditions in our supply chain in 2024. AutoStore has not identified reported cases of non-respect to internationally recognized instruments that involve value chain workers in our upstream and downstream value chain. While AutoStore is in the process of carrying out its reported actions and initiatives, the company has not yet formalized or quantified allocated resources to the management of material impacts, risks, and opportunities described in this chapter. 147 Contents Governance About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance G1 Business Conduct Appendices Corporate Governance Report Financial Statements Appendices 148 Contents G1 Business Conduct About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance G1 Business Conduct Appendices Corporate Governance Report Financial Statements Appendices Introduction 149 Business Conduct and Corporate Culture 150 Corruption and Bribery 156 Metrics 158 149 Contents Introduction Impacts, risks, and opportunities The following sections present our material impacts, risks, and opportunities structured by the standard’s sub-topics along with our approach and policies for addressing these areas. A summary of our general approach and policies related to this topical chapter follows on the next page, and relates to several of the impacts, risks, and opportunities presented herein. Further, on each impact, risk, and opportunity, we also outline actions and initiatives we have or are planning to implement to: – Mitigate or prevent negative impacts or risks, and – Emphasize positive impacts and opportunities. AutoStore has not yet established specific ESG related targets. As a result, current actions and initiatives are not formally aligned with predefined objectives. For more information, read more here. About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance G1 Business Conduct Appendices Corporate Governance Report Financial Statements Appendices AutoStore seeks to comply with applicable laws and regulations in all countries we operate in, to promote and respect human rights, and to act in a socially and economically responsible manner. In 2024, AutoStore continued to adhere to the UN Global Compact’s 10 Principles for Responsible Business. AutoStore registered no material incidents of non-compliance with laws and regulations in the current year. Key policies in this chapter Code of Conduct Whistleblowing and Investigation Policy Anti-Corruption Policy Responsibility Read more here on how our policies are managed Availability Externally available on our website When assessing our impacts, risks, and opportunities in relation to ESRS G1 Business Conduct, we took into account all important stakeholders as described in our stakeholder dialogue, because business conduct is a fundamental aspect of our operations and holds relevance for all our stakeholders. Our Code of Conduct and covered topics in the standard served as the primary framework for our assessment, while also considering other pertinent topics as applicable. 150 Contents Business Conduct and Corporate Culture Our approach and policies About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance G1 Business Conduct Appendices Corporate Governance Report Financial Statements Appendices The way we conduct our business and integrate it into our corporate culture is fundamental to achieving our goals. AutoStore’s Code of Conduct is the company’s key governing document and guide to ethical business practice. It includes mandatory requirements for everyone who works for and on behalf of AutoStore. The Code of Conduct sets out AutoStore’s expectations, commitments, and requirements regarding ethical business practices and personal conduct. More specifically, it addresses, among several matters, AutoStore’s expectations, commitments, and requirements on health and safety, diversity, equity, and inclusion, raising concerns, consequences of breaches, corruption and bribery, discrimination and harassment, substance abuse, fair competition, and environmental and climate impact. AutoStore’s Code of Conduct was updated and approved by the Board of Directors of AutoStore in 2024. All employees and interested parties of the group are personally responsible for understanding and complying with the Code of Conduct, and all employees are expected to act within AutoStore’s ethical standards and within the law. The Code of Conduct states that employees should consult with their manager whenever they are uncertain or require clarification on any matter that is not addressed, and states that good judgment shall be applied. New employees must undertake a mandatory e-learning course on our Code of Conduct as part of their onboarding. This course must be re-taken by all employees every three years and is available in three languages (English, Polish, and Thai) to ensure accessibility and understanding across the organization. Furthermore, our corporate culture, founded in our values – lean, transparent, and bold – is the foundation for impactful decisions and a unified work environment in AutoStore. These values are meant to encourage and support innovation and responsiveness within the organization. We have high expectations to ourselves, our employees, and third parties, and AutoStore will only cooperate with suppliers, distribution partners, and other stakeholders who adhere to the same ethical standards as we do. This is founded in our Code of Conduct. The ‘AutoStore way’ of corporate culture is guided by our values and founded in four principles or behaviors: 1 Move forward We encourage our employees to stay curious, ask questions, and actively contribute to the growth and development of AutoStore by taking initiative and participating in our journey. 2 Always care We encourage our employees to prioritize both their own well-being and the well-being of those around them while also caring about their tasks and deliverables. 3 Stay reliable "Say what you mean and do what you say." We strive for our employees to embody trustworthiness, integrity, and reliability in all they do. 4 Act as one We succeed as one unified team, working together toward shared goals. We encourage fostering collaboration, assuming good intentions, and prioritizing "we" over "me." 151 Contents Reporting on concerns AutoStore encourages all stakeholders to report and About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance G1 Business Conduct Appendices Corporate Governance Report Financial Statements Appendices express their concerns relating to our activities and suspected violations of our policies. There shall be a low threshold for reporting unethical or illegal business conduct, and we do not tolerate any form of retaliation against anyone who has raised an ethical or legal concern in good faith. This discussion encompasses all ethical concerns, both internal and external. Internally, we foster an open-door policy and encourage employees to share their questions, concerns, suggestions, or complaints with someone who can address them properly. Additionally, we provide a fully anonymous and untraceable whistleblowing channel through SafeCall, an independent professional service provider. This channel is accessible to both internal and external stakeholders. To ensure visibility, our intranet features a dedicated section on key corporate governance matters, with a direct link to SafeCall prominently displayed on the front page. Furthermore, our Whistleblowing and Investigation Policy, available on our external website, includes comprehensive details about accessing SafeCall for external users. Training on our Code of Conduct includes guidance on reporting concerns about unethical business practices. The required confirmation of understanding AutoStore’s Code of Conduct ensures our workforce remains informed and aligned with our ethical standards, including the responsibility to report any breaches. We are committed to ensuring that all reports are appropriately heard, investigated, and remediated as required. We have established principles for handling whistleblower reports, where dedicated internal personnel decide on the most appropriate action on reports of concern communicated through SafeCall. AutoStore has measures in place to ensure the reported matter goes directly to someone not involved, ensuring independent and objectively handling of the concern. Reports of unacceptable conditions shall be treated as confidential unless this is an obstacle to managing the issue in a reasonable manner. Furthermore, any person accused of a breach of the Code of Conduct has the right to be informed about the nature and cause of the accusation and to be heard. AutoStore aims to ensure transparency regarding the process of handling reports of concern. All steps shall be logged and documented. The process steps of reporting on concerns in contradiction of our Code of Conduct are detailed in our Whistleblowing and Investigation Policy. Personnel responsible for receiving whistleblowing reports have not yet received formal training on how to effectively handle such reports. The Chief People Officer (CPO) reports issues identified via the whistleblower channel to the Audit Committee on a quarterly basis. Where deemed relevant, this is further discussed within the Board of Directors. Starting in 2024, the General Counsel provide an annual report on legal compliance to the Board of Directors. Violations of AutoStore’s Code of Conduct, policies, or the law may carry serious consequences for the individuals involved and for the group. All breaches will be pursued by remedial measures. 152 Contents Business conduct Corporate culture About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance G1 Business Conduct Appendices Corporate Governance Report Financial Statements Appendices Healthy corporate culture Positive impact Value chain Own operations Impact AutoStore employees Connection to strategy and business model By embedding our values into our everyday operations, we aim at fostering a culture where employees feel aligned with strategic goals and are empowered to contribute meaningfully and with ethical business conduct Time horizon We are dedicated to sustaining the current actions and initiatives into the future and will continually strive to foster a healthy corporate culture underpinned by ethical business conduct, which is fundamental to our long-term success and integrity AutoStore promotes ethical business practices and leadership. This is founded in our Code of Conduct. We encourage open and transparent communication, aiming at preventing unethical behavior and safeguarding the company and all of our stakeholders. Our corporate culture encourages integrity, respect, and accountability, and impacts how we treat colleagues, distribution partners, customers, and other stakeholders. We believe that this culture drives consistent, principled behavior across all levels of the organization, promoting trust and long-term success while enhancing AutoStore’s reputation. Furthermore, our corporate culture is expected to enhance employee well-being, motivation, and retention by fostering an inclusive, supportive workplace that values diversity, equity, and inclusion (read more here). Our approach and policies AutoStore’s corporate culture is fundamental to achieving our goals, with our Code of Conduct serving as the key governing document for ethical business practices. It includes mandatory requirements for everyone who works for and on behalf of AutoStore, and all employees are responsible for understanding and adhering to the Code. For AutoStore, corporate culture refers to the shared values, beliefs, and practices that shape how we behave and interact with each other. AutoStore’s values – lean, transparent, and bold – are meant to encourage and support innovation and responsiveness within the organization. Our approach and policies described in the introduction to this chapter on business conduct and corporate culture apply to this impact. 153 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance G1 Business Conduct Appendices Corporate Governance Report Financial Statements Appendices Actions and initiatives Tone from the top – founding principles Our Code of Conduct establishes clear expectations and sets the tone from the top, providing guidance for ethical business conduct for everyone who works for or on behalf of AutoStore. In 2025, we have revised and updated our Code of Conduct, ensuring that it reflects the latest standards and practices. This initiative aims to strengthen alignment of expectations across our organization and throughout our value chain. The new Code of Conduct was approved by the Board of Directors in February 2025, and will be published on our webpage. Anonymous whistleblowing channel As presented in the introduction to this chapter, AutoStore provides a fully anonymous and untraceable whistleblowing channel through SafeCall, an independent professional service provider. In 2025, we plan to make the link to the whistleblowing channel more easily available to all on our webpage. Additionally, starting in 2024, the General Counsel will provide an annual report on legal compliance to be presented to the Board of Directors. Policies and founding principles are easily accessible A dedicated section on AutoStore’s intranet, easily accessible to all employees, focuses on corporate governance and business conduct. This page prominently features key policy documents and internal procedures and processes to ensure that all employees are informed and have easy access to relevant information of the company's standards and practices. While some of this information is already available in several languages, we plan to translate additional documents in 2025, specifically into Polish and Thai. This will ensure that all employees can fully understand and engage with the content, supporting our global operations. This dedicated section on our intranet also offers the channel for raising concerns and is easily available to all employees, ensuring that employees can report any issues or violations promptly and confidentially. Furthermore, our external webpage includes our key governing documents and are available to all. 154 Contents Business conduct Corporate culture About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance G1 Business Conduct Appendices Corporate Governance Report Financial Statements Appendices A sales-driven culture may lead to bias of inappropriate behavior Risk Value chain Own operations Connection to strategy and business model Aligned with our business model and strategy, our sales workforce plays an important role in driving growth. Potential risk may result from our high-speed working environment and can be caused by our own business model and strategy Time horizon Current potential risk with long-term perspective following the nature of risk We have identified a potential risk linked to AutoStore’s sales-driven culture, which may lead to breach of our expected ethical standards and values. A sales-driven culture is recognized to include a potential risk to the company by placing excessive emphasis on eg. revenue generation, sometimes at the expense of ethical values. In such environments, we identify that employees may feel pressured to prioritize short-term sales targets over long-term sustainability, transparency, and integrity. This pressure can lead to unethical practices, such as misleading customers, bending compliance rules, or disregarding company policies to close deals. Over time, this behavior may result in reputational damage, legal violations, and a loss of trust among stakeholders, undermining AutoStore’s governance standards and social responsibility commitments. Our approach and policies Our approach and policies described in the introduction to this chapter on business conduct and corporate culture apply to this risk. Actions and initiatives Applicable actions and initiatives presented here: – Tone from the top – founding principles – Anonymous whistleblowing channel – Policies and guiding principles are easily accessible 155 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance G1 Business Conduct Appendices Corporate Governance Report Financial Statements Appendices Actions and initiatives continued Segregation of duties for revenue recognition Orders are booked through our global sales system, which integrates with our ERP system to prepare orders and recognize revenue. Revenue is typically recognized on the date of shipment. If manual journal entries are required due to assessment and correction of bookings, these adjustments follow our internal financial reporting control procedures. Adjustments, if needed, are documented, reviewed, and approved to ensure no single individual can modify accounts independently. The planning function in the finance department is regularly following incoming orders and sales development together with the sales department. Additionally, as part of the period-end closing process, multiple functions within the finance department hold close meetings to assess the final results of the period. Performance is evaluated against forecasts and expected outcomes, with clearly defined roles and responsibilities across accounting and planning functions. Any material unexpected outcome to revenue is expected to be identified in the analyses performed by accounting, controlling, and planning teams during these close procedures. Segregation of duties in sales process The sales process in AutoStore is a structured and thorough procedure involving multiple steps, from lead generation and opportunity development to order booking and revenue recognition. This process inherently includes several involved parties, including a distribution partner, ensuring segregation of duties. This approach is seen to reduce the risk of bias or inappropriate behavior by distributing responsibilities. Our positive impact of a healthy corporate culture and underlying business conduct principles, as described, is consequently seen as a measure to the potential risk of unethical behavior linked to our sales-driven culture – we believe promoting a culture that values ethical behavior, long-term relationships with our stakeholders, and responsible business practices alongside our sales goals. Given the potential risk, we will continue to implement and enhance necessary measures and training for our employees to mitigate this potential risk effectively. 156 Contents Business conduct Corruption and bribery About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance G1 Business Conduct Appendices Corporate Governance Report Financial Statements Appendices Corrupt activities in the value chain can lead to fines or penalties Risk Value chain Cross value chain Connection to strategy and business model AutoStore's zero tolerance to corruption and bribery is integral to our business model and strategy, as it establishes our expectation and commitment to ethical operations, building trust with stakeholders and supporting sustainable, long-term growth in a competitive global market Time horizon Current potential risk with long-term perspective following the nature of risk AutoStore is part of a global value chain, with operations in several countries across continents. The company recognizes its exposure to potential risks relating to corrupt activities and that failure to prevent corruption can have legal and regulatory consequences, such as fines or sanctions, and severely damage AutoStore’s reputation and trust among our stakeholders. This potential risk spans our entire value chain. Potential corrupt activities in the value chain may pose financial risks for AutoStore, such as the loss of business opportunities and revenue or negative impacts on the share value. Our approach and policies AutoStore has zero tolerance for corruption and bribery. As part of AutoStore’s internal control systems and to avoid involvement in any form of corruption, we have implemented an Anti-Corruption Policy that sets the principles and guidelines for anti-corruption and anti- bribery work in the company. This policy is anchored in our Code of Conduct, and outlines the key principles that reflect our zero tolerance against corruption and bribery. The policy applies to all AutoStore employees and any third-party acting on behalf of AutoStore, and details that the group shall only engage or remain in business relations with third-parties that share our commitment to ethical business conduct and compliance, and who are willing to adhere to standards consistent with our own. All employees undertake training in anti-corruption and anti-bribery through understanding of our Code of Conduct as part of their onboarding. The responsibility for anti-corruption and anti-bribery work lies with the Chief People Officer, who reports directly to the Board of Directors on these matters. In 2025, anti-corruption and anti-bribery will be incorporated as topics covered in the annual legal compliance report presented to the Board of Directors. 157 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance G1 Business Conduct Appendices Corporate Governance Report Financial Statements Appendices Actions and initiatives Applicable actions and initiatives presented here: – Tone from the top – founding principles – Anonymous whistleblowing channel – Policies and guiding principles are easily accessible Procurement processes, due diligence, and risk assessments Further described in S2 Workers in the Value Chain, AutoStore requires suppliers to comply with our Supply Chain Business Ethics Code and implement it in their own supply chain. All new direct suppliers of AutoStore are screened for sanctions and other compliance risks using an external system provider to ensure adherence to our ethical and legal standards. Furthermore, when a new opportunity for an end user of the AutoStore system is registered in our global sales system in a high-risk country, it is flagged in the system and reviewed internally to determine whether AutoStore will proceed with the delivery to this end user. Overall corporate governance principles Closely aligned with our corporate governance principles, including risk management and internal control, we are continuously developing our internal control environment. This includes strengthening delegation of authority and segregation of duties to ensure that no single individual has full control over all aspects of any critical process. This includes, but are not limited to, responsibilities and restrictions in place for initiating and completing payments, approving expenditures, signing agreements, recording transactions, and reconciling accounts. Furthermore, external audits are integral to corporate governance and serve as an additional safeguard by reviewing financial transactions and processes for irregularities or signs of misconduct. Local handbooks and establishment of new offices AutoStore's global presence requires strict adherence to local laws and regulations, while also addressing potential language barriers. When establishing new offices, we engage local external expertise to ensure proper setup across various functions. Additionally, we continuously translate local handbooks and policy documents to eliminate language barriers and ensure accessibility for all employees. 158 Contents Metrics Methodology and assumptions for data About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance G1 Business Conduct Appendices Corporate Governance Report Financial Statements Appendices collection All figures presented in this section relate to the total as of December 31, 2024. Data reported on completed trainings has been extracted from our human capital management (HCM) system, Workday, as of the end of the reporting period. Data reported on our whistleblowing channel is gathered directly from SafeCall. Data reported on corruption and bribery comes from SafeCall and confirmation from relevant functions in AutoStore, including Legal, HR, and Accounting. The measurements of the presented metrics have not been validated by any external body other than our auditor. Business conduct and corporate culture In 2024, 63.1% of AutoStore’s existing employees completed the mandatory e-learnings and 28% were still in progress as of December 31, 2024. This applies to the e- learning held every third year. 96.1% of new employees had completed mandatory e-learnings required when commencing AutoStore. 2% were in progress per December 31, 2024. In 2024, AutoStore’s whistleblowing team received four anonymous reports via SafeCall, covering general safety, unfair treatment, integrity, and policy. All reports were promptly investigated in line with our Whistleblowing and Investigation Policy. – General safety The concern was clarified through local management, confirming compliance with legislation. A follow-up was registered to monitor potential risks. – Unfair treatment The concern was determined to be a HR matter and was addressed by HR with no further whistleblowing actions required. – Integrity Investigations confirmed compliance with the Code of Conduct, requiring no further action. – Policy The report was unsubstantiated, but follow-up actions were taken by HR and management. All four reports are considered closed by AutoStore. Corruption and bribery AutoStore registered no confirmed incidents of corruption or bribery in 2024, and consequently, no registered convictions and fines for violation of anti-corruption and anti-bribery laws in 2024. This also includes no confirmed incidents in which own workers were dismissed or disciplined for corruption or bribery-related incidents or incidents relating to contracts with business partners that were terminated or not renewed due to violations related to corruption or bribery. AutoStore does not currently have functions-specific training directly related to corruption and bribery. 159 Contents Appendices About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 160 Contents Incorporation by Reference Disclosure requirement Comment Pages GOV-3 Integration of sustainability-related performance in incentive schemes AutoStore has not integrated sustainability-related performance in incentive schemes 33 E1-1 Transition plan for climate change mitigation AutoStore has not yet developed a transition plan for climate change mitigation 66 SBM-3 Material impacts, risks and opportunities, and their interaction with strategy and business model 41 IRO-1 Description of the processes to identify and assess material climate related impacts, risks and opportunities 44 E1-2 Policies related to climate change mitigation and adaptation 67 E1-3 Actions and resources in relation to climate change policies Not applicable n.a. E1-4 Targets related to climate change mitigation and adaptation AutoStore has not yet developed target related to climate change mitigation and adaptation 28, 66 E1-6 Gross scopes 1, 2, 3 and total GHG emissions 77 E1-7 GHG removals and GHG mitigation projects financed through carbon credits AutoStore does not currently finance any GHG mitigation projects through the use of carbon credits n.a. E1-8 Internal carbon pricing No carbon credits were purchased in 2024. AutoStore currently has no plans to initiate GHG removals or storage projects n.a. E1-9 Anticipated financial effects from material physical and transitional risks and potential climate related opportunities AutoStore has no plans to introduce internal carbon pricing in the medium-term future n.a. About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices 161 Contents About Shareholder Information Board of Directors Report Sustainability Statements General Environment Social Governance Appendices Corporate Governance Report Financial Statements Appendices Oslo, April 23, 2025 The Board of Directors of AutoStore Holdings Ltd. Jim C. Carlisle Co-chair Vikas J. Parekh Co-chair Andreas Hansson Board member Hege Skryseth Board member Kjersti Wiklund Board member Michael K. Kaczmarek Board member Sumer Juneja Board member Viveka Ekberg Board member Mats Hovland Vikse Chief Executive Officer 162 Contents Corporate Governance Report About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices 163 Contents Corporate Governance Statement About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices AutoStore believes that effective corporate governance provides a foundation for sustainable long-term value creation and protection of interests for the benefit of shareholders, society, employees, and other stakeholders. The Board of Directors of AutoStore has adopted a set of governance principles to ensure a clear division of roles between the Board, executive management, and shareholders. The principles are based on the Norwegian Code of Practice for Corporate Governance (hereafter the ‘Code’). AutoStore is subject to corporate governance reporting requirements pursuant to section 2-9 of the Norwegian Accounting Act; chapter 4.5 of the Oslo Stock Exchange Rulebook II – Issuer Rules; and the Norwegian Code of Practice for Corporate Governance. The Accounting Act can be found (in Norwegian) on lovdata.no. The Oslo Stock Exchange Rulebook II can be found on euronext.com and the Code, which was last revised on October 14, 2021, can be found on nues.no. AutoStore’s corporate governance statement for 2024 follows below. The statement adopts the system used in the Code, and forms part of the Board of Directors Report. The statement was approved by the Board of Directors on April 23, 2025. Reference is also made to AutoStore’s governance structure presented in the Sustainability Statements. 164 Contents General Meeting of shareholders Members and attendance References The General Meeting is the company’s highest authority. The Annual General Meeting was held on May 21, 2024. A total of 2,911,440,391 shares, representing 84.9% of the share capital and the votes, were represented at the meeting. Minutes of General Meetings can be found here. The Nomination Committee The Nomination Committee is composed of two to three members, appointed by the shareholders for a two-year term at an Annual General Meeting unless otherwise resolved by the General Meeting. The Nomination Committee nominates candidates for election to the Board of Directors and members of the Nomination Committee, and submits remuneration proposals relating to members of the Board of Directors and the Nomination Committee. One meeting with a 100% attendance rate. Bylaw no. 125 can be found here. The Board of Directors The Board of Directors currently has eight members. Under jurisdiction of Bermuda, the Board of Directors is responsible for overall governance of the company, ensuring that appropriate management and control systems are in place, and supervising day-to-day management by the CEO. Four meetings with a 94% attendance rate for the following members: – Jim C. Carlisle (co-chair) – 4/4 – Vikas J. Parekh (co-chair) – 3/4 – Andreas Hansson – 4/4 – Hege Skryseth – 3/4 – Kjersti Wiklund – 4/4 – Michael K. Kaczmarek – 4/4 – Sumer Juneja – 4/4 – Viveka Ekberg – 4/4 – Edzard Overbeek – 1/1 (stepped down from the Board in April 2024) Read biographical information for the members of the Board of Directors here. About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices 165 Contents The Audit Committee Members and attendance References The Audit Committee may have up to four members elected by and among the members of the Board of Directors. The Audit Committee assists the Board in exercising its oversight responsibility with respect to the integrity of the company’s financial and sustainability statements, financial and sustainability reporting processes and risk management, internal controls, and compliance systems. The Committee also oversees the independence of the external auditor. Five meetings with a 87% attendance rate for the following members: – Viveka Ekberg (chair) – 5/5 – Andreas Hansson – 4/5 – Michael K. Kaczmarek – 4/5 The Remuneration Committee The Remuneration Committee may have up to four members elected by and among the members of the Board of Directors. The Remuneration Committee is a preparatory and advisory body in relation to the company’s strategy for the remuneration and performance evaluation of the executive management. It also monitors the organization’s needs in terms of required workforce capabilities and expertise. One meeting with a 100% attendance rate for the following members: – Jim C. Carlisle (chair) – 1/1 – Andreas Hansson – 1/1 – Michael K. Kaczmarek– 1/1 – Kjersti Wiklund – 0/1 (joined the Committee in 2024) About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices 166 Contents 01 Implementing and reporting on corporate governance About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices The Board of Directors of AutoStore is committed to building a trust-based relationship between the company and its shareholders and other stakeholders. The Board of Directors and the executive management aim to follow the recommendations of the Code and other international best practice standards. AutoStore believes that effective corporate governance involves transparent and trustful cooperation between all parties involved with the company and its business. This includes the shareholders, Annual General Meeting, Board of Directors and executive management, employees, customers, suppliers, other business partners, public authorities, and society at large. The company has adopted and implemented a corporate governance regime effective as of October 11, 2021, the date the listing application was submitted to the Oslo Stock Exchange. AutoStore complies with the recommendations of the Code, except for the following deviations: – Deviation from Section 2 “Business”: In accordance with common practice for Bermudian incorporated companies, the objectives of the company are not specifically described in the company’s Memorandum of Association, but are stated to be unrestricted. This is a wider and more general description of the company than recommended by the Code. – Deviation from Section 3 “Equity and Dividends”: Pursuant to Bermudian law and in accordance with common practice for Bermudian incorporated companies, the Board of Directors may issue any authorized but unissued shares in the company, subject to the bylaws and any resolution of the company’s shareholders to the contrary. Further, the company may purchase its own shares for cancellation or acquire them as treasury shares in accordance with the Bermuda Companies Act. The powers of the Board of Directors to issue and purchase shares (for cancellation or to be held as treasury shares) are not limited to specific purposes or to a specified period as recommended in the Code. – Deviation from Section 6 “General Meetings”: Pursuant to common practice for Bermudian incorporated companies, the company’s bylaws stipulate that the chair of the Board of Directors shall chair General Meetings unless otherwise resolved by the General Meeting. In this respect, the company deviates from Section 6 of the Code. However, the company has procedures in place to ensure that an independent person is available to chair the General Meeting, any agenda item concerning the chair personally, or in the absence of the chair. – Deviation from Section 8 “Board of Directors: Composition and Independence”: Pursuant to the bylaws, the chair of the Board of Directors will be elected by the Board of Directors, not the General Meeting. Consequently, both co-chairs are appointed by the Board of Directors itself. The Board of Directors has not adopted any resolutions in 2024 which are deemed to have a material impact on the company’s corporate governance regime. Read more about AutoStore’s overall corporate governance principles. 02 Business AutoStore, founded in 1996, is a technology company that develops order-fulfillment solutions to help businesses achieve efficiency gains related to the storage and retrieval of goods. Read more about AutoStore, its business model, and its strategy in the About section. Read more about the company’s ESG efforts in the Sustainability Statements for 2024. The Board of Directors has defined objectives, strategies, and risk profiles for the company’s business activities to ensure value creation for shareholders. These objectives, strategies, and risk profiles are evaluated annually by the Board of Directors. 03 Equity and dividends The company’s registered share capital as of December 31, 2024 consisted of 3,428,540,429 shares. The Board considers that AutoStore’s capital structure is appropriate to its objectives, its strategy, and the company’s risk profile. Any future proposal by the Board of Directors to declare dividends will be subject to applicable laws and will depend on a number of factors, including the company’s financial position and operational performance, capital 167 Contents requirements, contractual restrictions, general business conditions, and other factors the Board of Directors may deem relevant. The company will consider possible future dividend About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices distributions by reference to its medium-term leverage policy and available investment opportunities. The Board of Directors is not proposing any dividend distribution for the 2024 financial year. Pursuant to Bermudian law and common practice for Bermudian incorporated companies, the mandates granted to the Board of Directors to issue shares are not limited to specific purposes or to a specified period, which deviates from the recommendations in the Code. The Board of Directors may issue any authorized but unissued shares in the company on such terms and conditions as it may determine, subject to the bylaws and any resolution of the shareholders to the contrary. This authority has not been used in 2024. 04 Equal treatment of shareholders and transactions with close associates As of the date of this report, the company’s share capital is USD 34,285,404, divided into 3,428,540,429 shares with a nominal value of USD 0.01 each. Transactions between AutoStore and its related parties – including members of the Board or persons employed by the company either personally or through companies belonging to related parties – will be based on terms achievable in an open, free, and independent market, or on a third-party valuation. The Board and executive management are committed to ensuring equal treatment of all the company’s shareholders, and that transactions with related parties take place on an arm’s-length basis. Major transactions with related parties require the approval of the General Meeting. 05 Shares and negotiability AutoStore shares are listed on the Oslo Stock Exchange under the ticker AUTO and are freely transferable. The bylaws do not impose any restriction on the negotiability of the shares. There are no general restrictions on the purchase or sale of shares by members of AutoStore’s management, subject to their compliance with applicable rules on insider trading and the Market Abuse Regulation (MAR). The company has one class of shares and all shares carry equal rights, including voting rights. 06 General meetings All shareholders have the right to participate in General Meetings – the company’s highest decision-making body. The Board of Directors ensures that shareholders can attend and participate in General Meetings. The 2025 Annual General Meeting will take place virtually on May 20, 2025. The company’s financial calendar is published via the Oslo Stock Exchange and in the Investor Relations section of AutoStore’s website. The company seeks to enable as many shareholders as possible to attend Annual General Meetings. A complete notice of meeting is sent to shareholders no later than 21 calendar days before the event. The notice shall include sufficient supporting documentation to give shareholders an adequate basis for evaluating all matters to be considered at the meeting. The notice shall also include information on attendance and voting procedures. The notice and all documents are made available or sent to shareholders by electronic communication, to the extent allowed in AutoStore’s Memorandum of Association. Shareholders may vote on each individual matter, 168 Contents including on each individual candidate nominated for election. The chair of the Board of Directors shall attend all General About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Meetings, and other members of the Board may attend General Meetings as necessary. The company’s auditor will normally be present at General Meetings. The company sets a deadline for registering attendance as close to the meeting as possible, but no more than five days before the meeting date. Shareholders who intend to attend a General Meeting must inform the company in writing before the deadline specified in the notice of meeting. Shareholders may be denied admission if they fail to notify their attendance by the deadline. Shareholders may participate in General Meetings by telephone, electronic means, other communication facilities, or other means that permit all participants in the meeting to communicate simultaneously and instantaneously. Participation by such means is deemed to constitute personal attendance. The Board of Directors may decide to convene a General Meeting as an electronic meeting, provided that there are systems in place to ensure that the company can conduct, monitor, and control participation and voting. The Board may give shareholders the opportunity to vote in writing, including by electronic means, during a specified period before a General Meeting. In such cases, the Board will issue guidelines for such advance voting. According to the bylaws, General Meetings are chaired by the chair of the Board of Directors. The Board decides whether it is appropriate to engage an external chair for a meeting. The company’s Board instructions encourage attendance by members of the Board and the Chief Executive Officer (CEO). The chair of the Nomination Committee will attend meetings at which the election and remuneration of Board members and Nomination Committee members are to be considered. Minutes of General Meetings are published as soon as practicable via the Oslo Stock Exchange reporting system (newsweb.no, ticker code: AUTO) and in the Investor Relations section of AutoStore’s website. 07 Nomination Committee Section 125 of AutoStore’s bylaws states that the company shall have a Nomination Committee, comprising two to three members. The members of the Nomination Committee shall be appointed by resolution of the shareholders every two years at the Annual General Meeting. The current Nomination Committee was elected at the General Meeting in May 2022 and re-elected at the General Meeting in May 2024 for a term of two years. The objectives, responsibilities, and functions of the Nomination Committee comply with rules and standards applicable to the company, as described in the ‘Instructions for the Nomination Committee’ adopted by the General Meeting in May 2022. Members of the Committee are independent of the executive management and AutoStore employees, and serve the interests of the shareholders in general. The Nomination Committee communicates with shareholders, the Board of Directors, and the company’s executive management regarding proposed candidates for election to the Board. The Nomination Committee is required to explain and justify why it is proposing a given candidate. Shareholders, the Board, and members of the Nomination Committee may propose candidates for election to the Board and the Nomination Committee, provided that the proposals are compliant with any applicable Nomination Committee guidelines or corporate governance rules adopted by the company at a General Meeting. The Nomination Committee must ensure that information on any deadlines for proposing candidates or submitting suggestions to the Nomination Committee regarding the election of Board or Nomination Committee members is made available on the company’s website well in advance. Shareholders, members of the Board, and the Nomination Committee may also propose any person for election to the Board of Directors in accordance with the bylaws. The Nomination Committee may endorse or oppose any candidates suggested or proposed by any shareholder, the Board, or any member of the Nomination Committee in accordance with any applicable Nomination Committee guidelines or corporate governance rules adopted by the company at a General Meeting. The Nomination Committee may issue recommendations on the suitability of candidates for election to the Board and the Nomination Committee, as well as on the remuneration of Board and Nomination Committee members. The shareholders at any General Meeting may adopt guidelines on the duties of the Nomination Committee. 169 Contents 08 Board of Directors: Composition and independence About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices The Board of Directors is responsible for the overall management of the company. The Board is composed to ensure that it has sufficient expertise, capacity, and diversity needed to achieve the company’s goals; handle its main challenges; and promote value creation and the common interests of all shareholders. The Board shall consist of between three and eleven members, as decided by the General Meeting. AutoStore currently has eight board members. Board members are based in Norway, Germany, Portugal, the U.S., and UK. The Board is composed to ensure that Board members work efficiently together as a collegiate body, not as individual representatives of specific shareholders, groups of shareholders, or other stakeholders. The Board acts independently of any special interests and ensures that a majority of the Board members are independent of the company’s executive management and material business partners. Neither the CEO nor any members of executive management are members of the Board of Directors. Five of the eight current members of the Board are men, while three (37.5%) are women. AutoStore strives to comply with Norwegian law, including by maintaining a proportion of women Board members of at least 40%. All independent Board members are elected by the shareholders at a General Meeting. Board members may not serve for more than two years at a time, but may be re- elected. According to the company's bylaws, the Softbank and Thomas H. Lee Partners’ shareholders (as defined in the bylaws) have the right to appoint between one and three board members each, depending on their respective shareholding and provided that they each beneficially own at least 10% of the company's shares. The co-chairs of the Board is appointed from among the Board members by a majority of the Board members. Board members are encouraged to own shares in AutoStore to promote alignment of the financial interests of shareholders and Board members. To that end, Board members are discouraged from entering into hedging transactions designed to limit the financial risk associated with owning shares in the company. As of the end of 2024, the Board members had shareholdings in the company as disclosed in the Remuneration Report for 2024. The full report can be found here. 09 The work of the Board of Directors The Board of Directors produces an annual plan for its own work, with a particular focus on objectives, strategy, and implementation. Further, the Board has adopted instructions for its own work and the work of executive management, which concentrate on the division of internal responsibilities and duties. The objectives, responsibilities, and functions of the Board and the CEO comply with rules and standards applicable to the company, as described in the company’s ‘Rules of Procedure for the Board of Directors’. The Board’s primary responsibilities are to participate in the development and approval of the company’s strategy, perform necessary monitoring functions, and act as an advisory body for executive management. In general, the Board involves itself in all matters significant to the company’s financing, long-term development, and general operational performance, including risk management and internal controls as further described below. Approving the company’s overall strategy, business plans, and budgets are key priorities for the Board of Directors. Board members keep themselves fully updated on the company’s operational and financial development. In addition, the Board supervises the management of the company’s business in general and issues instructions to the CEO when necessary. The Board is responsible for all other duties assigned to it by law and is required to keep itself informed about and make decisions on all matters which management deems important or necessary. Related-party transactions are made on terms equivalent to those applicable in arm’s-length transactions and are made only if such terms can be determined. Each member of the Board of Directors has a general duty to avoid situations in which he or she has or may have a direct or indirect interest that conflicts with, or may conflict with, the company’s interests. Any Board member who is directly or indirectly interested in a contract or proposed contract or arrangement with the company shall declare the nature of the interest in accordance with the Bermuda Companies Act. Any Board member who has 170 Contents declared his or her interest as described above may vote in respect of any contract or proposed contract or arrangement in which he or she is interested and may be counted in the quorum for the relevant meeting, unless disqualified by either of the co-chairs or a vote of the majority of the Board members in attendance when the declaration is made. Nevertheless, a Board member may not vote, be counted in the quorum, or act as chair at a meeting in respect of (a) his or her appointment to hold any office or place of profit with the company or any body corporate or other entity in which the company owns an equity interest, or (b) the approval of the terms of any such appointment or of any contract or arrangement in which he or she is materially interested (otherwise than by virtue of his or her interest in shares, debentures, or other securities of the company), subject to certain exemptions as set out in the bylaws. To ensure more independent consideration of matters of Board activities in 2024 AutoStore’s Board of Directors met four times in 2024 . The Board’s annual plan specifies regular Board agenda items which must be discussed and/or approved by the Board at least annually. These items include the company’s objectives, strategy plan and risk picture, the budget process, and the Board’s self-evaluation. At all Board meetings, the CEO and other members of the executive management report on the company’s operational and financial developments and results. The Board reviewed, among other areas, cybersecurity, risk management, and internal controls, and conducted discussions with the external auditor. Quarterly and annual reports were presented and approved throughout the year, as relevant. Other key Board agenda items in 2024 included strategic update initiatives and product-, people, and commercial-related agenda items. ESG related matters were also discussed during the year. About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices a material character in which either of the co-chairs of the Board of Directors is, or has been, personally involved, the Board’s consideration of such matters should be chaired by some other member of the Board. The Board is committed to ensuring that transactions with third parties take place at arm’s length. The Board established an Audit Committee and Remuneration Committee in 2021, while the Nomination Committee was established in 2022. Audit Committee activities in 2024 The Audit Committee met five times in 2024. Agenda items included reviews of quarterly and annual financial reports, and the status of risk management and internal controls. Further, the annual plan for ESG activities with focus on CSRD readiness was discussed in the meetings. The external auditor attended all meetings to provide status updates on and summaries of the 2023 and 2024 audits and present mandatory reports to the Audit Committee. The Audit Committee also met the auditors without management present. 10 Risk management and internal controls The Board of Directors has a responsibility to ensure that the company has sound and appropriate internal control systems in place, in view of the scope and nature of the AutoStore group’s activities. Implementing effective risk management and internal control systems improves the company’s protection against situations that could harm its reputation or financial standing. Effective and proper risk management and internal controls are important for building and maintaining trust, achieving AutoStore’s objectives, and ultimately creating value for the company and its shareholders. Additionally, a well-structured risk management approach enables the company to identify and seize the right opportunities at the right time, fostering innovation and sustainable growth. The Audit Committee supports the Board of Directors to ensure that internal procedures and systems for effective corporate governance are in place. The Chief Financial Officer (CFO) reports directly to the Audit Committee on matters such as reporting, risks, internal controls, and corresponding compliance aspects – both financial and sustainability-related. Climate related risks are reported by the Chief People Officer to the Audit Committee. Financial reporting risks, control, and processes AutoStore’s consolidated Financial Statements are prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union. Internal controls over financial reporting (ICFR) and associated activities are designed to manage financial 171 Contents reporting risks and provide a basis for giving stakeholders reasonable assurance. The CFO is responsible for and supervises governance frameworks and operations in the areas of financial reporting and ICFR. AutoStore’s ICFR framework is based on the COSO 2013 Internal Controls Integrated Framework. The ICFR framework is implemented through a risk-based and top-down approach, ensuring that AutoStore’s activities, accounts, and management are subject to adequate control. For more information on risks, controls, and processes About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices on ESG related matters, read more here. Enterprise risk management Responsibility for supervising enterprise risk management rests with the CFO. AutoStore has established a systematic and uniform approach to risk management throughout the AutoStore group. Regular risk assessments are carried out and discussed with executive management before being reported to the Audit Committee. The Board of Directors reviews the company’s most important areas of risk exposure annually. The review details any material shortcomings or weaknesses in AutoStore’s internal controls and how risks are being managed. The Board of Directors report describes the company’s main risks as they relate to AutoStore’s financial and sustainability reporting. This includes the company’s control environment, risk assessments, control activities and information, communication, and follow-up. The Board of Directors is required to stay updated on the company’s financial situation and continuously evaluate whether equity and liquidity are adequate relative to the risks associated with the company’s activities. Further, the Board must take immediate action if the company’s equity or liquidity situation is deemed inadequate at any time. The company’s executive management reports frequently to the Board of Directors on both operational and financial matters. The purpose of such reporting is to give the Board sufficient supporting information for decision-making and to enable it to respond quickly to changing conditions. Board meetings are held at least quarterly, and the Board was provided with management reports at least monthly throughout 2024. Financial performance was reported to shareholders quarterly throughout the year, in accordance with the company’s financial calendar. 11 Remuneration of Board of Directors The remuneration arrangements of the Board of Directors are decided by the shareholders at the Annual General Meeting, based on the recommendation of the Remuneration Committee. Board remuneration reflects (1) the responsibility and expertise of each board member, (2) the complexity of the company and the AutoStore group’s business, and (3) the time invested by each board member in Board work and any committee work. The remuneration of the Board of Directors is independent of the financial performance of the company. Options are not issued to members of the Board of Directors. The company has, however, granted restricted stock units (RSUs) to independent Board members. More information on remuneration of the Board of Directors can be found in the Remuneration Report for 2024 here. No Board member (and no company associated with a Board member) performed any specific paid assignment for AutoStore beyond the Board appointment in 2024. The Remuneration Report for 2024 provides details of all elements of the remuneration and benefits received by each member of the Board of Directors. This includes a specification of any consideration paid to members of the Board of Directors in addition to their ordinary Board remuneration, including for service on committees. AutoStore Holdings Ltd. and its subsidiaries are covered by director’s and officer’s liability insurance. The insurance policy indemnifies Board members and executives against legal defense costs and potential legal liability arising out of claims made against them in their capacity as a Board member and/or officer of the company. The insurance policy is renewed annually. 172 Contents 12 Remuneration of executive personnel About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices The company’s executive remuneration guidelines as set out in the Remuneration Policy support the company’s prevailing strategy and values, as well as align the interests of shareholders and executive management. The policy was approved at the Annual General Meeting on May 19, 2022, and will be reviewed and approved at least every four years in accordance with Norwegian law. Performance-related executive remuneration is linked to value creation for shareholders and/or the company’s profit over time. The arrangements are intended to incentivize company performance and incorporate quantifiable factors under the influence of management. The company caps remuneration for executives linked to the financial performance of the company. More details can be found in the Remuneration Report for 2024 here. The principles governing executive salaries, remuneration, and benefits are reviewed by the Remuneration Committee and approved by the Board of Directors. Remuneration Committee activities in 2024 The Remuneration Committee met once in 2024. Agenda items for the 2024 meeting included the approval of the Remuneration Report for 2023. 13 Information and communication Based on the Code, AutoStore has adopted guidelines for its reporting of financial and other information based on transparency and taking into account the rules on good stock exchange practice and general requirement of equal treatment in the securities market. The company is obliged to continually provide its shareholders, Oslo Stock Exchange, and the financial markets in general with timely and precise information about the company and its operations. This information shall be published via the stock exchange’s reporting system (www.newsweb.no, ticker code: AUTO) and in the investor section on AutoStore’s website. Relevant information is provided in annual and half-yearly reports, quarterly updates, press releases, notices to the stock exchange, and published investor presentations according to what is deemed appropriate and required at any given time. The company will clarify its long-term potential, including strategies, value drivers, and risk factors, and has to maintain an open and proactive policy for investor relations. AutoStore also holds regular presentations of annual and interim results. In 2024, the company published a financial calendar with an overview of dates of important events, such as the Annual General Meeting, interim financial reports, and public presentations. The calendar and the information therein are available in English. Subject to any applicable exemptions, AutoStore discloses all inside information promptly. The company always provides information about certain decisions by the Board of Directors and the General Meeting concerning dividends, mergers/demergers, and/ or changes in share capital. 14 Takeovers The Board of Directors has adopted governing principles for its response to any takeover offer defined in the group’s Corporate Governance Policy. In any takeover process, the Board and executive management have an individual responsibility to ensure that AutoStore’s shareholders are treated equally and that there are no unnecessary interruptions to the company’s business activities. If an offer is made for the company’s shares, the Board of Directors should issue a statement recommending either acceptance or rejection of the offer by shareholders. The Board’s statement on the offer should clarify whether the views expressed are unanimous and, if this is not the case, it should explain the basis on which specific members of the Board have excluded themselves from the Board’s 173 Contents statement. The Board has a particular responsibility to ensure, to the extent possible, that shareholders have sufficient information and time to assess the offer. In the event of a takeover process: About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices – The Board of Directors may not seek to hinder or obstruct any takeover offer for the company’s operations or shares, unless it has valid and particular reasons for doing so. – The Board of Directors may not exercise mandates or pass any resolutions with the intention of obstructing the takeover offer, unless this has been approved by the General Meeting following announcement of the offer. – The Board of Directors may not take any actions intended to give shareholders or others an unreasonable advantage at the expense of other shareholders or the company. – The Board of Directors may not enter into any agreement with any offer or that limits the company’s ability to procure other offers for the company’s shares, unless it is self-evident that such an agreement is in the common interest of AutoStore and its shareholders. – The Board of Directors and executive management may not invoke measures with the intention of protecting their own personal interests at the expense of the interests of shareholders. – The Board of Directors must strive to ensure that inside information about the company or any other information that must be assumed to be relevant for shareholders in an offer process, is not published. In the event of a takeover offer, the Board of Directors will, in addition to complying with relevant legislation and regulations, seek to comply with the recommendations in the Code, unless there are reasons not to do so. This includes obtaining a valuation from an independent expert. On this basis, the Board of Directors will seek to issue a recommendation stating whether or not shareholders should accept the offer. Any transaction that effectively entails a discontinuation of the company’s activities requires approval by a General Meeting. 15 Auditor The company’s external auditor presents an overall audit plan for AutoStore to the Board of Directors and the Audit Committee annually. Deloitte acted as external auditor for the 2024 financial year. Deloitte’s involvement with AutoStore in 2024 related to the following: – Attending meetings of the Board of Directors, management, and Audit Committee to discuss the annual accounts, accounting principles, assessment of any important accounting estimates, and other important matters. – Reviewing the company’s internal control procedures with relevance for financial and sustainability reporting. – Meeting the Audit Committee without representatives of executive management present. – Confirming its independence from AutoStore and providing an overview of non-audit services delivered to the company. – Presenting the main features of the audit. The Board of Directors reports the total external audit fees, split between audit and non-audit services, to the General Meeting annually for approval. The Annual General Meeting approves the principles governing auditor remuneration. 174 Contents Financial Statements About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Notes Appendices 175 Contents Consolidated Statement of Comprehensive Income For the periods ended December 31 About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Notes Appendices USD million Notes 2024 2023 Revenue and other operating income 2.1 601.4 645.7 Total revenue and operating income 601.4 645.7 Cost of materials 2.3 -161.6 -207.6 Employee benefit expenses 2.4 -81.8 -79.1 Other operating expenses 2.5, 7.2 -71.5 -310.4 Depreciation 3.1-3.2 -15.8 -10.6 Amortization of intangible assets 3.3-3.4 -47.0 -51.5 Impairment 3.4 -1.1 - Operating profit/loss 222.5 -13.6 Finance income 4.5 11.2 8.4 Finance expense 4.5 -49.2 -43.1 Foreign exchange gains/(losses) 4.5 -8.4 2.0 Profit/loss before tax 176.1 -46.3 Income tax expense/(benefit) 5.1 -39.5 13.7 Profit/loss for the year 136.6 -32.6 Profit/loss attributable to: Equity holders of the parent 136.6 -32.6 Earnings per share Basic earnings per share (USD) 6.2 0.041 -0.010 Diluted earnings per share (USD) 6.2 0.040 -0.010 176 Contents Consolidated Statement of Comprehensive Income For the periods ended December 31 About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Notes Appendices USD million Notes 2024 2023 Other comprehensive income/loss Items that subsequently will not be reclassified to profit or loss: Exchange differences on translation of parent company -15.4 -9.0 Items that subsequently may be reclassified to profit or loss: Exchange differences on translation of foreign operations -114.4 -35.7 Other comprehensive income/loss for the period -129.8 -44.6 Total comprehensive income/loss for the period 6.7 -77.2 Total comprehensive income/loss attributable to: Equity holders of the parent 6.7 -77.2 177 Contents Consolidated Statement of Financial Position For the periods ended December 31 About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Notes Appendices USD million Notes 31.12.2024 31.12.2023 Non-current assets Property, plant and equipment 3.1 36.8 30.2 Right-of-use assets 3.2 57.5 50.8 Goodwill 3.3 953.0 1,061.9 Intangible assets 3.4 436.5 492.0 Deferred tax assets 5.1 1.8 5.7 Other non-current assets 4.1 5.6 1.9 Total non-current assets 1,491.4 1,642.5 Current assets Inventories 2.3 87.3 82.9 Trade receivables 2.6 135.7 110.7 Other receivables 2.6 15.6 42.4 Cash and cash equivalents 4.4 296.1 253.3 Total current assets 534.6 489.3 TOTAL ASSETS 2,026.0 2,131.8 Equity Share capital 4.8 34.3 34.3 Share premium 4.8 1,154.6 1,154.6 Treasury shares -0.7 -0.7 Other equity 95.9 86.8 Total equity 1,284.0 1,274.9 178 Contents Consolidated Statement of Financial Position For the periods ended December 31 About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Notes Appendices USD million Notes 31.12.2024 31.12.2023 Non-current liabilities Non-current interest-bearing liabilities 4.2 418.4 432.8 Other non-current liabilities 4.2, 7.2 - 57.0 Non-current lease liabilities 3.2 51.3 47.8 Deferred tax liabilities 5.1 72.2 96.7 Non-current provisions 7.1 7.3 2.9 Total non-current liabilities 549.2 637.1 Current liabilities Trade and other payables 2.7 48.7 46.5 Other current liabilities 4.2, 7.2 77.4 138.9 Current lease liabilities 3.2 11.7 10.0 Income tax payable 5.1 47.4 7.4 Current provisions 7.1 7.6 16.9 Total current liabilities 192.8 219.7 Total liabilities 742.0 856.8 TOTAL EQUITY AND LIABILITIES 2,026.0 2,131.8 Oslo, April 23, 2025 The Board of Directors of AutoStore Holdings Ltd. Jim C. Carlisle Co-chair Vikas J. Parekh Co-chair Andreas Hansson Board member Hege Skryseth Board member Kjersti Wiklund Board member Michael K. Kaczmarek Board member Sumer Juneja Board member Viveka Ekberg Board member Mats Hovland Vikse Chief Executive Officer 179 Contents Consolidated Statement of Cash Flows For the periods ended December 31 About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Notes Appendices USD million Notes 2024 2023 Cash flow from operating activities Profit/loss before tax 176.1 -46.3 Adjustment to reconcile profit/loss before tax to net cash flow Depreciation, amortization and impairment 3.1-3.4 64.0 62.1 Share-based payment expense 7.4 2.3 1.5 Finance income 4.5 -11.2 -8.4 Finance expense 4.5 49.2 43.1 Foreign exchange gains/(losses) 4.5 8.4 -2.0 Working capital adjustments Change in inventories -4.4 0.6 Change in trade and other receivables -21.2 -23.8 Change in trade and other payables 2.2 -5.0 Changes in provisions and other financial liabilities 4.2 -134.9 159.7 Other items Tax paid 12.8 -29.1 Net cash flow from operating activities 143.4 152.5 Cash flow from investing activities Purchase of property, plant and equipment 3.1 -15.6 -15.5 Purchase of intangible assets 3.4 -11.2 -6.7 Development expenditures 3.4 -30.8 -29.5 Interest received 4.5 11.0 8.4 Net cash flow from investing activities -46.7 -43.2 180 Contents Consolidated Statement of Cash Flows For the periods ended December 31 About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Notes Appendices USD million Notes 2024 2023 Cash flow from financing activities Proceeds from sale of treasury shares 4.8 - 1.8 Payments of principal for the lease liability 3.2, 4.3 -8.2 -4.7 Payments of interest for the lease liability 3.2, 4.3 -3.8 -2.8 Interest paid to financial institutions 4.5 -32.2 -31.0 Net cash flow from financing activities -44.2 -36.8 Net change in cash and cash equivalents 52.5 72.5 Effect in change of exchange rate -9.7 6.0 Cash and cash equivalents, beginning of the year 4.4 253.3 174.8 Cash and cash equivalents, end of the year 296.1 253.3 181 Contents Consolidated Statement of Changes in Equity For the periods ended December 31 About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Notes Appendices Other equity USD million Notes Share capital Share premium Treasury shares Other capital reserves Cumulative translation differences Retained earnings Total equity Balance at January 1, 2024 34.3 1,154.6 -0.7 10.4 -227.8 304.3 1,274.9 Profit/loss for the period - - - - - 136.6 136.6 Other comprehensive profit/loss for the period - - - - -129.8 - -129.8 Total comprehensive profit/loss for the period - - - - -129.8 136.6 6.7 Share-based payments 7.4 - - - 2.3 - - 2.3 Purchase/sale of treasury shares - - - - - - - Balance at December 31, 2024 34.3 1,154.6 -0.7 12.7 -357.7 440.8 1,284.0 The cumulative translation differences relate to the translation of results and financial position of subsidiaries as well as the parent company with functional currencies different than USD to the presentation currency. As the group has large net investments in subsidiaries with NOK as functional currency, the depreciation of NOK against USD has resulted in negative translation differences being recognized in 2024 of USD -129.8 million (USD -44.6 million). Translation differences related to translation of the parent company are presented as not reclassifiable to profit or loss, while translation differences related to the translation of foreign operations are presented as reclassifiable to profit or loss in the statement of other comprehensive income. 182 Contents Consolidated Statement of Changes in Equity For the periods ended December 31 1 The difference between the USD 1.5 million of equity-settled share-based payment expense disclosed in note 7.4 and the USD 2.4 million presented in the statement of equity relates to USD 0.9 million of employee bonus shares for 2022. The bonus shares for 2022 were recognized as a liability as of December 31, 2022, however, reclassified to equity in 2023, as they were subject to equity settlement during 2023. About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Notes Appendices Other equity USD million Notes Share capital Share premium Treasury shares Other capital reserves Cumulative translation differences Retained earnings Total equity Balance at January 1, 2023 34.3 1,154.6 -0.9 7.9 -183.2 335.3 1,347.8 Profit/loss for the period - - - - - -32.6 -32.6 Other comprehensive profit/loss for the period - - - - -44.6 - -44.6 Total comprehensive profit/loss for the period - - - - -44.6 -32.6 -77.2 Share-based payments1 7.4 - - - 2.4 - - 2.4 Purchase/sale of treasury shares - - 0.2 - - 1.6 1.8 Balance at December 31, 2023 34.3 1,154.6 -0.7 10.4 -227.8 304.3 1,274.9 183 Contents Sections 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk and Equity 5 Tax 6 Group Structure 7 Other Disclosures Notes About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Notes Appendices 184 Contents 1 Background 1.1 Corporate Information 1.2 Basis of Preparation 1.3 New and Amended Standards and Interpretations 1.4 Significant Judgments, Estimates, and Assumptions About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices 185 Contents 1.1 Corporate Information About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices The financial statements of AutoStore Holdings Ltd. and its subsidiaries (“AutoStore group”, “the company” or “the group”) for the period ended December 31, 2024, were authorized for issue by the Board of Directors on April 23, 2025. AutoStore Holdings Ltd. has shares traded on the Oslo Stock Exchange, with the ticker symbol AUTO. The company’s registered office is located at Park Place, 55 Par La Ville Road, Third Floor, Hamilton HM11, Bermuda. The group’s corporate headquarters is located at Stokkastrandvegen 85, 5578 Nedre Vats, Norway. The AutoStore group is an innovative robotic and software technology provider and a pioneer of cube storage automation. The group operates in the warehouse automation industry and the strongly growing cube storage segment. The group develops warehouse solutions for the future and helps its customers to enable space-saving and increase performance while reducing labor and energy costs. As the parent company is incorporated in Bermuda, the Financial Supervisory Authority of Norway (Finanstilsynet) has granted AutoStore group an exemption from including the separate financial statements of AutoStore Holdings Ltd. as part of the annual report. 186 Contents 1.2 Basis of Preparation About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices The consolidated financial statements are prepared in accordance with IFRS Accounting Standards as adopted by the European Union (“EU”), herein referred to as “IFRS”, and additional requirements in the Norwegian Securities Trading Act. The financial statements are prepared based on the going concern assumption. All figures are presented in millions (000,000), except when otherwise indicated. In the statement of comprehensive income/ loss, income/gains are presented as positive amounts and expenses/costs are presented as negative amounts. In the notes, both income and expenses are presented as positive numbers, except for note 2.2, which is presented the same way as in the statement of comprehensive income/loss. AutoStore has selected a presentation in which the description of accounting policies, as well as estimates, assumptions, and judgmental considerations, are disclosed in the notes to which the policies relate. Presentation and functional currency The consolidated financial statements are presented in US Dollars (USD), while the functional currency of the parent company and some of the largest subsidiaries are in Norwegian kroner (NOK). Functional currency in each entity of the AutoStore group is determined based on the primary economic environment in which the entity operates, i.e. normally the one in which the entity primarily generates and expends cash. When the factors or indicators are mixed and the functional currency is not obvious, management uses its judgment to determine the functional currency that most faithfully represents the economic effects of the underlying transactions, events, and conditions. As part of this approach, management has given priority to the primary indicators before considering the other indicators, which are designed to provide additional supporting evidence to determine an entity’s functional currency. Climate change In preparing the consolidated financial statements for the year ended December 31, 2024, the group has considered the potential impact of climate risk. Management has specifically considered how the current valuation of assets and liabilities may be impacted by risks related to climate change, resource use, carbon footprint, and circular economy, as well as the group’s plans to mitigate those risk factors. The assessed climate related risks included both physical and transition risks. As of December 31, 2024, AutoStore has not identified any material climate related physical risks for the group’s operations and value chain arising from exposure to chronic or acute climate related hazards. Among the assessed transition risks related to the group’s operations and value chain were regulatory, technological, market, and reputational risks. AutoStore is monitoring several scenarios that may result in increased risks in the long-term perspective, and will assess these scenarios further in 2025. Especially, the group’s assessments have considered the following risks: – Heightened stakeholder expectations and the absence of measurable commitments like decarbonization and transition plans – Higher prices for emission-intensive products due to carbon pricing mechanisms – Environmental regulations related to resource use and operational circularity, particularly the use of virgin/non- recycled materials 187 Contents 1.2 Basis of Preparation About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices As of December 31, 2024, the identified climate related risks are not expected to have a significant impact on the group's assets or liabilities. However, management will continue to monitor and assess the actual and potential effects of climate related risks going forward, including plans to mitigate these. Although the financial impact and likelihood of occurrence are considered low in the short- term perspective, the associated financial risks could become higher in the medium to long-term perspective without proactive measures. In arriving at this conclusion, the group has reviewed each line item (and related estimates) in the statement of financial position and identified those line items that could have the potential of being significantly impacted by climate related risks, including the group’s plans to mitigate against those risks. The line items have been mapped and compared against the climate risks identified through the overall enterprise risk assessment process. Those line items that have the potential to be significantly impacted are those taking into consideration forward-looking information. Such items have been reviewed in detail to confirm: – That the projected cash flows and growth rate used for goodwill impairment assessments are consistent with the climate related risk assumptions described above and the actions that are planned to mitigate against those risks – Useful life of intangible assets is appropriate given the risk of future regulation, taxes, increased carbon prices, or change in consumer behavior, potentially requiring AutoStore to change the development and production process (e.g. introduction of recycled plastic and increased use of other recycled materials in the production process) Business impact of global conflicts As a result of escalating conflicts in the Middle East, integral global trade corridors through the Red Sea and Suez Canal have become increasingly under threat. This trade route is central to the shipping of goods between Europe and Asia and is utilized by AutoStore to transport products to the Asia-Pacific region from the company’s production facility in Poland. This business represents around 6% of AutoStore’s revenue in 2024. Further escalations of the conflict could necessitate circumnavigation via the African continent in a significantly longer route. This alternation augments the risk of escalating transportation costs within these supply chains. In 2023, the group announced the opening of a new production facility in Thailand, which is seen to mitigate the risk. In 2024, the group continued its focus on further developing lean and efficient operations including refined production and sourcing strategies. Russia’s invasion of Ukraine in February 2022 continues to pose an increased risk of negative impacts on the global economy. AutoStore’s business has seen a limited direct impact of Russia’s invasion of Ukraine and subsequent sanctions in 2024. However, additional macro-level complexity and implications may have negative impacts going forward. AutoStore continues to closely monitor the recent developments related to U.S. tariffs. Reference is made to note 7.5 for further information on events after the reporting period. 188 Contents 1.3 New and Amended Standards and Interpretations About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices New and amended standards adopted by the group The group applied certain amendments to standards for the first time, which are effective for annual periods beginning on or after January 1, 2024. Below is a list of the amended standards that applied for the first time in 2024, but did not have any material impact on the consolidated financial statements of 2024: – Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback – Amendments to IAS 1 – Classification of Liabilities as Current or Non-Current and Non-Current Liabilities with Covenants – Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements Standards issued but not yet effective The group has not early adopted any accounting standard, interpretation, or amendment that has been issued but is not yet effective. The group intends to adopt new and amended standards and interpretations, if relevant, when they become effective. – IFRS 18 – Presentation and Disclosure in Financial Statements. IFRS 18 will replace IAS 1 Presentation of Financial Statements and applies for annual periods beginning on or after January 1, 2027. The new standard introduces the requirement to classify all income and expenses into five categories in the statement of profit or loss (operating, investing, financing, discontinued operations, and income tax), management-defined performance measures (MPMs) to be disclosed in the notes to the financial statements, and enhanced guidance on how to group information in the financial statements. In addition, all entities are required to use the operating profit sub-total as the starting point for the statement of cash flows when using the indirect method The group is still in the process of assessing the impact of the new standard, particularly with respect to the structure of the group’s statement of profit or loss and the statement of cash flows and the additional disclosures required for MPMs. The following new and amended standards are not yet effective. The group does not expect any significant effects related to upcoming standards and amendments. – Amendments to IAS 21 – Lack of Exchangeability – Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments 189 Contents 1.4 Significant Judgments, Estimates and Assumptions About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices The preparation of the consolidated financial statements in accordance with IFRS and applying the chosen accounting policies requires management to make judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results may differ from these estimates. The estimates and the underlying assumptions are reviewed on an ongoing basis. The accounting policies applied by management, which include a significant degree of estimates and assumptions or judgments that may have the most significant effect on the amounts recognized in the financial statements, are summarized below: Estimates and assumptions: – Useful lives of intangible assets (note 3.4) – Impairment testing of value in use (note 3.5) – Valuation of share-based payments (note 7.4) Accounting judgments: – Capitalization of development costs (note 3.4) – Determination of functional currency (note 1.2) – Determination of performance obligations (note 2.1) – Accounting assessment of Ocado settlement agreement (note 7.2) A detailed description of the significant accounting estimates and judgments is included in the individual note where applicable. 190 Contents 2 Operating Performance 2.1 Revenue from Contracts with Customers 2.2 Segment Information 2.3 Inventories 2.4 Employee Benefit Expenses 2.5 Other Operating Expenses 2.6 Trade and Other Receivables 2.7 Trade and Other Payables About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices 191 Contents 2.1 Revenue from Contracts with Customers About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices The principal business activities of the group are to develop and manufacture an automated warehouse system based on robotics, referred to as “the AutoStore system”. The AutoStore system has a variety of applications, and the modularity creates high flexibility and eliminates most limitations to scalability. The AutoStore system is distributed and sold through distribution partners, where the distributors are the AutoStore group’s customers. The distributors are responsible for the installation of the system and any subsequent service to the end-user of the AutoStore system. The group has opted to present revenue and other operating income combined in the consolidated statement of comprehensive income, as other operating income is not material. Accounting policies Significant accounting judgments The group’s revenue from contracts with distributors relates to sales of modules and components of the AutoStore system and related services connected to the AutoStore system. The group has applied significant judgment in the determination of performance obligations within contracts and has evaluated that each component of the AutoStore system represents distinct performance obligations and should be accounted for separately. Revenue streams AutoStore system The AutoStore system consists of different modules for warehouse storage and handling. The AutoStore system includes, but is not limited to: Grid, Bin, Port, Robot, AutoStore Control System, and spare parts, referred to as components of the AutoStore system. Revenue from components of the AutoStore system is recognized at a point in time when the distributor obtains control over the components, which is generally upon shipment. The AutoStore Control System consists of technical equipment with an integrated on-premise software license. The group may also provide upgrades and maintenance of the AutoStore Control System component. Revenue from maintenance and upgrades is recognized over time on a monthly basis over the subscription license period. The group’s contract liabilities related to upgrades and maintenance of the AutoStore Control System is presented under the line “other current liabilities” in the financial position. The AutoStore group generally acts as a principal. For freight or shipment of components of the AutoStore system (freight element), the group acts as an agent in these transactions, as the nature of the group’s promise is to arrange for the shipping service on behalf of the distributor. Revenue for the shipping service is recognized at a point in time when the shipping service is arranged on a net basis (sales freight income less sales freight expense). As most of AutoStore’s revenues are recognized and invoiced upon shipment, the group does not have any significant contract balances except for trade receivables. The group presents its trade receivables arising from contracts with customers separately from other receivables. Accounting policies for trade receivables are presented in note 2.6. 192 Contents 2.1 Revenue from Contracts with Customers About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Warranties AutoStore typically provides warranties for general repairs of defects that existed at the time of sale, as required by law. These assurance-type warranties are accounted for under IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Reference is made to note 7.1. Variable consideration To estimate the variable consideration for discounts, the group applies the expected value method. The group then applies the requirements on constraining estimates of variable consideration and recognizes a refund liability for the discounts. The refund liability for discounts is presented in note 7.1. Rendering of services Rendering of services consists of services related to the AutoStore system, such as installation, maintenance, and training of personnel, in connection with the delivery of components of the AutoStore system. These services are treated as separate performance obligations because AutoStore will only provide these services upon request by the distributor, and they are not obligated to provide the services to fulfill the promises to the customer. Revenue from rendering services is recognized as the services are performed. Remaining performance obligations The group applies the practical expedient of IFRS 15.121 and does not disclose information about remaining performance obligations (RPOs) when the expected duration of the contract is twelve months or less. As of December 31, 2024, the anticipated amount and date on which RPOs, with an expected duration over twelve months, are recognized as income is USD 8.9 million in 2025 and USD 18.6 million in 2026. As of December 31, 2023, there were no contracts with a duration greater than twelve months. 193 Contents 2.1 Revenue from Contracts with Customers About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Disaggregated revenue information The group’s revenue from contracts with customers has been disaggregated and is presented in the tables below: USD million 2024 2023 Major products and services AutoStore system 601.8 644.8 Rendering of services 0.5 1.7 Total revenue¹ 602.3 646.5 Geographic information Norway 12.9 13.9 Germany 134.5 100.0 Europe, excl. Norway and Germany 232.6 279.1 U.S. 131.2 186.7 Asia 37.3 33.8 Other 53.8 32.9 Total revenue¹ 602.3 646.5 Timing of revenue recognition Goods transferred at a point in time 576.9 630.2 Goods and sevices transferred over time 25.3 16.3 Total revenue¹ 602.3 646.5 Other operating income -0.9 -0.8 Total revenue and other operating income 601.4 645.7 1 Excluding other operating income. 194 Contents 2.2 Segment Information About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices AutoStore has one technology that is developed centrally and sold in different markets. The technology is sold globally through AutoStore group’s distribution partners, who in turn sell to the end- customer. Responsibility for the business is shared by top management. The chief operating decision maker (CODM) of the AutoStore group, which is defined as the Board of Directors, monitors the operating results of the group as one business unit for the purpose of making decisions about resource allocation and performance assessment, hence only one segment is reported. Segment performance is evaluated with a main focus on total revenue, gross profit, and EBITDA. Total revenue is measured consistently with the total of revenue and other operating income in the statement of comprehensive income, while gross profit and EBITDA are defined below. Geographical markets For information on the group’s geographical markets, reference is made to note 2.1. Information about major customers The group has four customers (distributors) that individually contribute more than 10% of the group’s total revenue in 2024 (together these four companies contributed 65% of the group’s total revenue in 2024 and 59% in 2023). USD million 2024 2023 Revenue and other operating income 601.4 645.7 Cost of materials -161.6 -207.6 Gross profit 439.8 438.1 Employee benefit expenses -81.8 -79.1 Other operating expenses -71.5 -310.4 EBITDA 286.4 48.5 Gross profit is the group’s revenue and other operating income, less cost of materials. 195 Contents 2.2 Segment Information About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million 2024 2023 Profit/loss for the period 136.6 -32.6 Income tax expense 39.5 -13.7 Finance income -11.2 -8.4 Finance expense 49.2 43.1 Foreign exchange gains/(losses) 8.4 -2.0 Depreciation 15.8 10.6 Amortization 47.0 51.5 Impairment 1.1 - EBITDA 286.4 48.5 EBITDA is the group’s profit/loss for the period after adding back the income tax expense, finance costs, depreciation, amortization and impairment, and deducting the finance income. Foreign exchange gains/(losses) are deducted or added back based on gain/ loss for the period. 196 Contents 2.2 Segment Information About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million 31.12.2024 31.12.2023 Balance sheet items Assets 2,026.0 2,131.8 Liabilities 742.0 856.8 Equity 1,284.0 1,274.9 Non-current operating assets Located in Norway 1,390.9 1,581.1 Located in foreign countries 93.0 53.8 Total non-current operating assets 1,483.9 1,634.9 In the table, non-current assets are broken down by geographical areas based on the location of the operations. Non-current assets for this purpose consist of property, plant and equipment, right-of-use assets, and intangible assets, including goodwill. 197 Contents 2.3 Inventories About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million 31.12.2024 31.12.2023 Raw materials 42.4 55.8 Work in progress 0.1 0.2 Finished goods 44.8 26.8 Total inventories (gross) 87.3 82.9 Provision for obsolete inventories - - Total inventories at the lower of cost and net realizable value 87.3 82.9 During the reporting period, the group has recognized USD 161.6 million of inventories as an expense, compared to USD 207.6 million in 2023. In 2024, write-down expense of USD 0.03 million was recognized. In 2023, a write-down expense of USD 0.1 million was recognized. 198 Contents About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices 2.4 Employee Benefit Expenses Employee benefit expenses comprise all types of remuneration to all employees of the group (i.e. full-time, part-time, permanent, casual or temporary staff, and directors and other management personnel) and are expensed when earned. Ordinary salaries can be both fixed pay and hourly wages and are earned and paid periodically. Holiday pay is earned on the basis of ordinary pay and is normally paid in the holiday months of the following year. The employer’s national insurance contribution (social security) is calculated and expensed for all payroll-related costs, including pensions. Pension contributions are earned on a monthly basis. Other employee expenses consist of other benefits such as insurance, cars, and telephones, and remuneration to the Board of Directors. Pensions The group offers defined contribution schemes in all markets as occupational pension plans, ensuring both compliance with local formal requirements as well as ensuring an attractive overall value proposition to current and future employees. The programs are defined contribution plans. Contributions are paid to pension insurance plans and charged to the income statement in the period to which the contributions relate. Once the contributions have been paid, there are no further payment obligations for the group. USD million 2024 2023 Salaries 51.9 48.3 Social security costs 7.7 17.6 Pension costs 4.5 3.5 Other employee expenses 17.7 9.7 Total employee benefit expenses 81.8 79.1 Average number of full-time employees (FTEs) 1,025 1,000 199 Contents About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices 2.4 Employee Benefit Expenses Remuneration to the Board of Directors Remuneration to the members of the Board of Directors is determined by the Annual General Meeting (“AGM”). The remuneration reflects the Board’s responsibilities, expertise, time, and commitment. External members of the Board of AutoStore Holdings Ltd. are partly compensated through RSUs (restricted stock units). Vesting period is two years from grant date. Remuneration and direct ownership of shares of the co-chairs and of the Board are disclosed in AutoStore’s Remuneration Report for 2024. The full report can be found on our website in the “Reports” section here. Remuneration to executive management Executive management compensation is disclosed in the following table. The full Remuneration Report for 2024 can be found on our website in the “Reports” section here. USD million 2024 2023 Salaries 3.4 2.5 Pension costs 0.2 0.1 Other employee expenses 1.1 0.5 Total remuneration to executive management 4.7 3.1 Fee to Board of Directors 0.2 0.1 Total remuneration 5.0 3.2 200 Contents 2.5 Other Operating Expenses About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million 2024 2023 Meetings, travel and representation expenses 10.9 8.7 Lease expenses 6.6 4.2 Business services expenses 6.7 6.5 IT costs 14.7 10.5 Marketing and distribution expenses 12.4 11.4 Consulting expenses 15.3 23.7 Other operating expenses 4.9 6.3 Ocado settlement expense - 239.0 Total other operating expenses 71.5 310.4 USD million 2024 2023 Audit fee 2.7 2.0 Attestation of sustainability reporting 0.1 - Tax advisory services - - Other advisory services - 0.1 Total auditor fees (excl. VAT) 2.8 2.1 201 Contents 2.6 Trade and Other Receivables About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices AutoStore operates in a business-to-business (B2B) market, and the group sells products to distribution partners. The distribution partners include some of the largest companies in the automated warehousing market, including, among others, Swisslog, Bastian Solutions, Element Logic, Dematic, Fortna, Okamura, and SoftBank Robotics.The group’s trade receivables consist solely of amounts receivable from revenue from contracts with customers. Trade receivables are generally on terms of 30 to 60 days. As most of the group’s revenue is recognized at a point in time, AutoStore does not have any significant contract assets (in terms of the distinction between contract assets and receivables). Accounting Policies Expected Credit Losses AutoStore’s customer base consists of several large customers. The group’s historical defaults have been low. The group updates its provision matrix at each reporting date with the focus on the forward-looking estimates of each customer. In determining the forward-looking information, AutoStore considers factors that impact the customer base the most, i.e. general trends and changes in the economy, such as inflation/growth rates, unemployment rates, interest rates, and FX rates. In addition, industry- or geography-specific indicators that might have a significant impact on inferring future default levels are considered. As of December 31, 2024, historical losses are close to zero, and there is no forward-looking information indicating that this will change in the near future. The customer base remains unchanged from previous periods and mainly consists of large companies. 202 Contents 2.6 Trade and Other Receivables About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million 31.12.2024 31.12.2023 Trade receivables from customers at nominal value 135.7 110.7 Allowance for expected credit losses - - Total trade receivables 135.7 110.7 Prepaid rent and other expenses 2.1 1.0 VAT receivable 4.3 9.0 Tax reimbursement - 19.7 Other 9.2 12.7 Total other receivables 15.6 42.4 As of December 31, the aging analysis of trade receivables is as follows: USD million Past due but not impaired Aging analysis of trade receivables Not due < 30 days 31-60 days > 60 days Total Trade receivables at January 1, 2023 81.9 6.1 0.9 1.0 90.0 Trade receivables at December 31, 2023 93.7 11.8 3.9 1.4 110.7 Trade receivables at December 31, 2024 118.6 13.0 2.5 1.6 135.7 For details regarding the group’s procedures for managing credit risk, reference is made to note 4.7. 203 Contents 2.7 Trade and Other Payables About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million 31.12.2024 31.12.2023 Trade payables 41.2 43.8 VAT payables 2.8 - Withholding payroll taxes and social security 3.9 2.7 Other payables 0.8 - Total trade and other payables 48.7 46.5 For trade and other payables aging analysis, reference is made to note 4.3. 204 Contents 3 Asset Base 3.1 Property, Plant, and Equipment 3.2 Right-of-Use Assets and Related Lease Liabilities 3.3 Goodwill 3.4 Other Intangible Assets 3.5 Impairment Considerations About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices 205 Contents 3.1 Property, Plant, and Equipment About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Property, plant, and equipment is stated at cost, net of accumulated depreciation and impairment losses. Repair and maintenance costs are recognized in profit or loss as incurred. USD million Fixtures and fittings Vehicles Office machinery and equipment Total Cost at January 1, 2023 14.8 0.4 9.2 24.3 Additions 7.6 - 9.2 16.8 Disposals -0.1 - - -0.1 Currency translation effects 0.2 0.1 0.2 0.5 Cost at December 31, 2023 22.5 0.5 18.6 41.5 Additions 6.1 - 9.4 15.6 Disposals - - - - Currency translation effects -0.6 - -1.3 -1.9 Cost at December 31, 2024 28.0 0.5 26.7 55.2 206 Contents 3.1 Property, Plant, and Equipment About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million Fixtures and fittings Vehicles Office machinery and equipment Total Accumulated depreciation at January 1, 2023 4.4 0.2 2.5 7.1 Depreciation for the year 2.9 0.1 1.2 4.1 Disposals -0.1 - - -0.1 Currency translation effects 0.1 - 0.1 0.2 Accumulated depreciation at December 31, 2023 7.3 0.3 3.8 11.3 Depreciation for the year 2.5 0.1 4.4 7.0 Disposals - - - - Currency translation effects 0.1 - 0.1 0.2 Accumulated depreciation at December 31, 2024 9.9 0.4 8.3 18.5 Carrying amount at January 1, 2023 10.4 0.2 6.7 17.3 Carrying amount at December 31, 2023 15.2 0.2 14.8 30.2 Carrying amount at December 31, 2024 18.1 0.1 18.4 36.8 Economic life (years) 3-7 5 3-7 Depreciation plan Straight-line method Method of measurement Cost-model 207 Contents 3.2 Right-of-Use Assets and Related Lease Liabilities About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices AutoStore mainly has leases related to office buildings and production facilities in Norway, Poland, the U.S., and Thailand. Additionally, the group leases a small number of vehicles (cars and trucks). The group also leases machinery and equipment, however, these are expensed as incurred as they are either considered short- term or of low value. Accounting policies Group as a lessee At the lease commencement date, the group recognizes a lease liability and corresponding right-of-use asset for all lease agreements in which it is the lessee, except for short-term leases (defined as 12 months or less) and low-value assets. Measuring the lease liability The lease liability is initially measured at the present value of the lease payments for the right to use the underlying asset during the lease term that is not paid at the commencement date. Lease payments do not include variable lease payments and non-lease components, such as payments related to maintenance activities, including shared costs (e.g. cleaning of shared areas in the building). The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (effective interest method), reducing the carrying amount to reflect the lease payments made, and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in- substance fixed lease payments. Variable lease payments that are not included in the lease liability are expensed in the period they relate to. AutoStore presents its lease liabilities as separate line items in the consolidated statement of financial position. Cash flows related to payments for the principal portion of the lease liability and interest are classified within financing activities. Measuring the right-of-use asset The right-of-use asset is initially measured at cost. The cost of the right-of-use asset includes the corresponding amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date, and initial direct costs incurred. The right-of-use asset is subsequently depreciated on a straight- line basis over the lease term and assessed for impairment by applying the same policies for impairment as for property, plant, and equipment (note 3.5). 208 Contents 3.2 Right-of-Use Assets and Related Lease Liabilities About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices The group presents its right-of-use assets as separate line items in the consolidated statement of financial position. The right-of-use assets recognized are presented in the table below: USD million Vehicles Office buildings and production facilities Total Carrying amount of right-of-use assets at January 1, 2023 0.3 31.0 31.3 Addition of right-of-use assets 0.2 23.0 23.2 Depreciation of right-of-use assets -0.1 -6.1 -6.3 Currency translation effect -0.1 2.6 2.6 Carrying amount of right-of-use assets at December 31, 2023 0.3 50.6 50.8 Addition of right-of-use assets 0.3 15.1 15.4 Depreciation of right-of-use assets -0.2 -8.6 -8.8 Currency translation effect - 0.1 0.1 Carrying amount of right-of-use assets at December 31, 2024 0.4 57.2 57.5 Lease term or remaining useful life 2-3 years 2-14 years Depreciation method Straight-line method 209 Contents 3.2 Right-of-Use Assets and Related Lease Liabilities About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices The lease expenses in the period related to short-term leases and low- value assets are included in other operating expenses in the consolidated statement of comprehensive income, and the payments are presented in the group’s operating activities in the consolidated statement of cash flows. USD million 2024 2023 Expenses in the period related to practical expedients and variable payments Short-term lease expenses 1.4 3.5 Low-value assets lease expenses 1.1 0.7 Variable lease expenses in the period (not included in the lease liabilities) - - Total lease expenses in the period 2.5 4.2 The group’s lease liabilities: USD million 31.12.2024 31.12.2023 Total lease liabilities 63.0 57.8 Current lease liabilities in the statement of financial position 11.7 10.0 Non-current lease liabilities in the statement of financial position 51.3 47.8 Undiscounted cash flows from lease liabilities are presented in note 4.3. 210 Contents 3.2 Right-of-Use Assets and Related Lease Liabilities About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Inflation adjustments In addition to the lease liabilities presented above, the group is committed to paying variable lease payments for its office buildings and manufacturing facilities, mainly related to future inflation adjustments in Norway, Poland, the U.S., and Thailand which are not included in the initial calculation of lease liabilities. The lease liability and right-of-use asset will be adjusted when the inflation adjustment has a cash flow effect. Extension and termination options AutoStore has certain lease contracts that include extension and termination options. Management applies judgment in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. These options are negotiated by management to provide flexibility in managing the group’s business needs. The group includes the renewal period for leases as a part of the lease term for leases where management is reasonably certain to exercise the option to renew the leases. Furthermore, the periods covered by termination options are included as part of the lease term only when the options are reasonably certain not to be exercised. As most of the contracts represent relatively standardized office facilities, extension options are in most cases not taken into consideration when determining the lease term when the initial contract term is five years and above. Lease commitments not yet commenced As of December 31, 2024, the group has no lease contracts that have not yet commenced. Other matters AutoStore’s leases do not contain provisions or restrictions that impact the group’s dividend policies or financing possibilities. Further, the group does not have significant residual value guarantees related to its leases. The group does not have any other significant exposure related to its leases which require further disclosures. Group as a lessor – finance lease The group sub leases office space under a finance lease with an undiscounted receivable of USD 0.8 million and discounted finance lease receivable of USD 0.6 million. The term is 6 years. There is no impairment loss allowance related to the finance lease receivables in 2024. Credit risk related to the sub lease agreement is considered low. The effective interest rate is approximately 6.9%. 211 Contents 3.3 Goodwill About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Recognized goodwill originates from the acquisition of AutoStore by Thomas H. Lee Partners in 2019 and the acquisition of Locai in 2021. No additional goodwill was recognized during 2023 and 2024. For the purpose of impairment testing of goodwill AutoStore performed its annual impairment test for goodwill and intangible assets with indefinite lives as of December 31, 2024, and no impairment was recognized. The goodwill acquired in the business combination of AutoStore by Thomas H. Lee Partners in 2019 and the acquisition of Locai in 2021 was, from the acquisition date, allocated to the AutoStore system CGU. The key assumptions used to determine the recoverable amount of the CGU are disclosed in note 3.5. USD million Goodwill Cost at January 1, 2023 1,096.4 Additions through acquisition - Currency translation effects -34.5 Cost at December 31, 2023 1,061.9 Additions through acquisition - Currency translation effects -108.8 Cost at December 31, 2024 953.0 Carrying amount at January 1, 2023 1,096.4 Carrying amount at December 31, 2023 1,061.9 Carrying amount at December 31, 2024 953.0 212 Contents 3.4 Other Intangible Assets About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Nature of the group’s intangible assets At the acquisition of AutoStore by Thomas H. Lee Partners in 2019, the group recognized intangible assets for technology, trademarks, patents, and customer relationships. Subsequently, the group has recognized intangible assets comprising internal development projects related to the AutoStore system. In connection with the acquisition of Locai in 2021, the group has recognized intangible assets for software and technology. Accounting policies Significant accounting judgments Capitalization of internal development costs Development expenditures on an individual project, which represent new applications/technology, are recognized as an intangible asset when the group can demonstrate: – The technical feasibility of completing the intangible asset so that the asset will be available for use or sale – Its intention to complete and its ability and intention to use or sell the asset – How the asset will generate future economic benefits – The availability of resources to complete the asset – The ability to measure reliably the expenditure during development Other costs are classified as research and are expensed as incurred. Amortization of the capitalized asset begins when the asset is available for its intended use and is amortized over the period of expected future life. When an asset is available for its intended use, it is reclassified from internal development to the respective relevant asset class. Initial capitalization of direct costs is based on management’s judgment that technological and economic feasibility is confirmed, usually when a product development project has reached a defined milestone according to an established project management model. In determining the amounts to be capitalized, management makes assumptions regarding the expected future cash generation of the project, discount rates to be applied, and the expected period of benefits. The assessment of when product development is capitalized is highly subjective, as the outcome of these projects may be uncertain. Capitalized development is subject to impairment assessment with references to note 3.5. Significant accounting estimates and assumptions Useful lives of intangibles The useful lives of intangible assets are assessed as either finite or indefinite, and may in some cases involve considerable judgment. Intangible assets with indefinite useful lives are tested for impairment at least annually. Intangible assets with finite useful lives are amortized over their useful economic life and assessed for impairment whenever AutoStore finds any indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. 213 Contents 3.4 Other Intangible Assets About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Trademarks that have existed for a long period of time and have a sound reputation at the time of acquisition are assessed by the group as having an indefinite useful life, and are not amortized. Only trademarks that are purchased through the acquisition of companies are capitalized in the consolidated financial statements. Reference is made to note 3.5 for impairment considerations and annual testing of the group’s intangible assets with indefinite useful lives. No general indicators for impairment of intangible assets were identified in the current or prior year. The group’s classification of intangible assets Software and technology The value of the group’s intangible assets primarily relates to the underlying robot/robot technology and the integrated software that controls and optimizes the performance of every robot and moving part of the system. The underlying base technology was recognized through the acquisition of the AutoStore group by Thomas H. Lee Partners in 2019. Base technology capitalized through the acquisition is amortized over the expected useful life of 25 years. New products and features being developed with shorter expected useful lives using this base technology are generally amortized over five years. Internal development The majority of the ongoing development activities relate to add-on features and improvements to the base technology. Internally developed assets are amortized from the time when the asset are available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by management and reclassified to software and technology. Patents The patents are intangible assets arising from legal rights. AutoStore has patents related to IT/communication, Robots, Ports, Grid, Bins, and system layout. Patents are amortized over 13-18 years, which is the period of the contractual or other legal rights and the period (determined by economic factors) over which the group expects to obtain economic benefits from the asset. Customer relationships Customer relationships were recognized through the acquisition of the AutoStore group in 2019, and represent the value of the company’s distributor relationships at the time of the acquisition. Customer relationships are amortized on a straight-line basis over five years, being the estimated useful life of benefit from the acquisition date of customer relationships. Trademarks Trademarks were recognized through the acquisition of the AutoStore group in 2019. Trademarks have an indefinite useful life and are tested for impairment annually. 214 Contents 3.4 Other Intangible Assets About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million Trademarks Software and technology Patent rights Customer relationships Internal development Total Cost at January 1, 2023 6.0 456.7 93.7 117.0 23.5 697.0 Additions - - 6.7 - 29.5 36.2 Reclassification - 7.5 - - -7.5 - Currency translation effects - -14.2 -1.9 -1.6 0.3 -17.4 Cost at December 31, 2023 6.0 450.0 98.5 115.4 45.8 715.8 Additions - - 11.2 - 30.8 42.0 Reclassification - 42.9 - - -42.9 - Currency translation effects -0.8 -35.6 -8.0 -0.8 -4.2 -49.4 Cost at December 31, 2024 5.2 457.2 101.7 114.6 29.6 708.4 Accumulated amortization at January 1, 2023 - 71.9 18.3 82.1 - 172.3 Amortization for the year - 24.9 5.9 20.6 - 51.5 Currency translation effects - - - - - - Accumulated amortization at December 31, 2023 - 96.8 24.2 102.7 - 223.8 Amortization for the year - 29.5 5.6 11.9 - 47.0 Impairment for the period - - - - 1.1 1.1 Currency translation effects - - - - - - Accumulated amortization at December 31, 2024 - 126.3 29.8 114.6 1.1 271.9 Carrying amount at December 31, 2023 6.0 353.0 74.3 12.7 45.8 492.0 Carrying amount at December 31, 2024 5.2 330.8 72.0 - 28.5 436.5 Economic life (years) Indefinite 5-25 13-18 5 n.a. Amortization plan n.a. Straight-line method n.a. Method of measurement Cost-model The group has recognized additions to other intangible assets of USD 42.0 million during the twelve months ended December 31, 2024. Of this amount, USD 30.8 million relates to internal development and the remaining USD 11.2 million relates to new patents. USD 42.9 million of internal development is ready for its intended use and has been reclassified to software and technology. 215 Contents 3.5 Impairment Considerations About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Accounting policies AutoStore evaluates external and internal indications of impairment for property, plant, and equipment (“PP&E”), right-of-use assets, intangible assets, and goodwill at the reporting date. External indicators AutoStore monitors include significant decline in asset value, adverse changes in technological, market, economical or legal environment, increased interest rates affecting the asset’s value, and carrying amounts exceeding market capitalization. AutoStore also monitors internal indicators including physical damage or obsolescence of the asset, significant adverse changes, or worse economic performance affecting, or expected to affect, the asset. The group tests goodwill and trademarks with indefinite useful lives (see notes 3.3 and 3.4) and internal development projects for impairment annually, or more often when circumstances indicate that the carrying value may be impaired. Impairment assessment of PP&E, right-of-use assets, and intangible assets with finite useful life When reviewing for indication of impairment of PP&E, right-of-use assets, and intangible assets with finite useful life, AutoStore considers the relationship between the estimated market capitalization of the group and its book value. In addition, AutoStore considers factors such as industry growth, the impact of general economic conditions, changes to the technological and legal environment, and the group’s market share and performance compared to previous forecasts in this assessment, among other factors. No impairments have been recognized to the AutoStore group’s PP&E, right-of-use assets, and intangible assets with finite useful life on December 31, 2024. Impairment assessment of goodwill and intangible assets with indefinite useful life The group performs the impairment test of goodwill and assets with indefinite useful life on December 31 or when circumstances indicate that the carrying value may be impaired. The impairment of USD 1.1 million disclosed in the note on internal development follows a separate assessment related to the decision to close two development projects. AutoStore system - Cash-generating unit (“CGU”) The group is being monitored as one unit by management and operates as a separate business. Cash flows are reported in the same format as in the quarterly and annual reports, on a group level. Following the acquisition by Thomas H. Lee Partners in July 2019 and the acquisition of Locai in 2021, the goodwill was allocated to one CGU (the “AutoStore system CGU”). The group has determined one operating segment, i.e. AutoStore system according to IFRS 8 Operating Segments, which is the same level as the CGU determined for the goodwill impairment test. The AutoStore system is currently the smallest identifiable group of assets that generates cash inflows to the group, and these are largely independent of the cash inflows from other assets. As the group’s trademark is an intangible asset with an indefinite useful life that does not generate largely independent cash inflows, impairment is tested based on the AutoStore system CGU, and any impairment is made proportionate to the asset’s carrying amount. 216 Contents 3.5 Impairment Considerations About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Basis for determining the recoverable amount The CGU’s recoverable amount has been determined based on its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. The cash flows are derived from the detailed budget and forecast calculations for the next three years approved by the Board of Directors of the group. A long-term growth rate is calculated and applied to project future cash flows after the forecast period. The table below outlines the carrying amounts of goodwill and intangible assets with indefinite useful lives and intangible assets that have not yet begun amortization, which are tested for impairment annually: USD million 2024 2023 AutoStore system - CGU Goodwill 953.0 1,061.9 Trademarks 5.2 6.0 Internal development projects in progress 28.5 45.8 Total carrying amount 986.8 1,113.7 217 Contents 3.5 Impairment Considerations About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices The recoverable amount is based on revenue growth in the forecast period, the discount rate, expected future cash flows, and the terminal growth rate (further described below). The recoverable amount of the cash-generating unit is higher than its carrying amount and no impairment loss is recognized during the year. The carrying amount of the CGU includes goodwill, intangible assets, and trademarks, together with other operational assets and net working capital. Management believes that no reasonably possible change in the key assumptions would cause the carrying amount of the CGU to materially exceed its recoverable amount. The result of the annual impairment test is further supported by a price-to-book (P/B) level of 2.5 on traded shares as of December 31, 2024. Significant accounting estimates and assumptions Impairment testing of goodwill, trademarks, and internal development projects in progress The calculation of value in use for the AutoStore system CGU is most sensitive to the following assumptions: – Compound annual growth rate (CAGR) of sales in the forecast period – Operating cash flow margin – Pre-tax discount rate – Terminal growth rate CAGR of sales in the forecast period The expected growth in operating revenues is based on the expected high growth in the industry and the group’s market share. The growth forecast is based on management’s expectations of future conditions in the markets, including the entry of new participants to the market. Operating cash flow margin The operating cash flow margin is determined based on an analysis of historical levels of revenues, cost of materials, and operating expenses, while forward-looking estimates are derived using scenario-weighted assumptions for these profit and loss/cash flow measures. Pre-tax discount rate The pre-tax discount rate, which is set to 11.9% as of December 31, 2024 (11.9% 2023), reflects the current market assessment of the risks specific to the CGU. The pre-tax discount rate for the group is estimated based on the weighted average cost of capital (WACC). Terminal growth rate The terminal growth rate, which is set to 2.0% as of December 31, 2024 (2.0% 2023), is the estimated long-term rate of growth in the economy where the business operates, aligned with long-term global inflation targets. Climate related matters AutoStore constantly monitors the latest government regulations concerning climate related matters. As of December 31, 2024, no regulation has been passed that is expected to materially impact the group. The group will adjust the key assumptions used in value in use calculations and sensitivity to changes in assumptions should a change be required. 218 Contents 4 Financial Instruments, Risk, and Equity 4.1 Overview of Financial Instruments 4.2 Interest-bearing Liabilities 4.3 Aging of Financial Liabilities 4.4 Cash and Cash Equivalents 4.5 Finance Income and Finance Costs 4.6 Fair Value Measurement 4.7 Financial Risk 4.8 Equity and Shareholders About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices 219 Contents 4.1 Overview of Financial Instruments About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Classification of financial instruments All of the group’s financial assets and liabilities are classified at amortized cost (see table below). Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR (the effective interest rate method). The amortization is included as a finance expense in the statement of comprehensive income. Reference is made to note 2.6 for expected credit losses (ECLs) for the group’s trade receivables. IBOR reform The group has non-current interest-bearing loans and borrowings with indexed interest rates based on EURIBOR and SOFR. The carrying amount of the group’s financial assets and liabilities is presented in the tables below: USD million Notes 31.12.2024 31.12.2023 Financial assets at amortized cost Trade receivables 2.6 135.7 110.7 Cash and cash equivalents 4.4 296.1 253.3 Other non-current assets 5.6 1.9 Total financial assets 437.4 365.9 220 Contents 4.1 Overview of Financial Instruments About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million Notes 31.12.2024 31.12.2023 Financial liabilities at amortized cost Non-current interest-bearing liabilities 4.2 418.4 432.8 Current interest-bearing liabilities 1.2 1.2 Other non-current liabilities 4.2 - 57.0 Other current liabilities 4.2 61.5 120.8 Trade payables 2.7 41.2 43.8 Non-current lease liabilities 3.2 51.3 47.8 Current lease liabilities 3.2 11.7 10.0 Total financial liabilities 585.3 713.4 Significant finance income and finance expense arising from the group’s financial instruments are disclosed separately in note 4.5. 221 Contents 4.2 Interest-bearing Liabilities About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million Maturity Interest rate 31.12.2024 31.12.2023 Senior Facilities: Facility B (EUR) 30.07.26 EURIBOR+2.50% 253.4 269.6 Senior Facilities: Facility B (USD) 30.07.26 SOFR+3.25% 167.0 167.0 Capitalized fees - Facility B -2.0 -3.7 Total non-current interest-bearing loans and borrowings 418.4 432.8 In November 2021, the group established a revolving credit facility (RCF) which may be drawn at any time up to USD 150 million. The group has not drawn any amounts on the RCF as of December 31, 2024. The RCF matures on January 30, 2026. Management has assessed that the fair value of interest-bearing liabilities (Facility B) is not significantly different from their carrying amounts. Reference is made to note 4.6. The Senior Facilities have a maturity of July 30, 2026. 222 Contents 4.2 Interest-bearing Liabilities About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million 31.12.2024 31.12.2023 Liability related to the settlement of the Ocado Group litigation Non-current - 57.0 Current 61.5 120.8 Total 61.5 177.8 To reflect the GBP 200 million settlement payment to Ocado Group in 2023, AutoStore recorded an operating expense of USD 239.0 million, with a corresponding financial liability discounted using the prevailing market interest rate for a similar instrument with a similar credit rating (8.4%). Of the total amount, USD 61.5 million matures within the next 12 months and is presented as other current liabilities. The remaining amount has been paid. The original agreement included AutoStore to pay Ocado Group GBP 200 million in installments over two years. The first payment was made in July 2023. The settlement liability matures in June 2025. Reference is made to note 7.2. USD million 01.01.2024 - 31.12.2024 01.01.2023- 31.12.2023 Analysis of cash flow from settlement with Ocado Group Settlement liability - 239.0 Change in estimate due to reclassification - -7.9 Payment to Ocado Group in the period -127.8 -62.2 Finance expense (discounting effect) 11.4 9.0 Effect on cash flow from operating activities -116.3 177.8 223 Contents 4.2 Interest-bearing Liabilities About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million 31.12.2024 31.12.2023 Secured balance sheet liabilities Non-current interest-bearing liabilities (Facility B) 418.4 432.8 Balance sheet value of assets pledged as security for secured liabilities Property, plant and equipment 36.8 30.2 Right-of-use assets 57.5 50.8 Intangible assets 436.5 492.0 Other non-current assets 5.6 1.9 Inventories 87.3 82.9 Trade receivables 135.7 110.7 Other receivables 15.6 42.2 Cash and cash equivalents 264.7 205.5 Total assets pledged as security for interest-bearing liabilities (Facility B) 1,039.8 1,016.2 The group has not given any guarantees to or on behalf of third parties in the current and previous periods. 224 Contents 4.2 Interest-bearing Liabilities About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Covenant requirements The revolving credit facility contains a “springing” financial covenant which will be set at a senior secured net leverage ratio of 6.75x. The financial covenant under the revolving credit facility will only be tested on a semi-annual date if, at that semi-annual date, the cash drawings under revolving credit facility (subject to certain carve-outs and net cash and cash equivalents of the group) exceed 40% of the total commitment under the revolving credit facility. The credit agreements contain certain additional “incurrence” covenants that are tested upon the occurrence of an event, rather than on an ongoing basis, and which limit, among other things, the company’s use of capital. These covenants can only be violated as a result of a voluntary action, including but not limited to (i) incurring debt; (ii) paying a dividend or otherwise distributing value outside the restricted group; (iii) making a non-controlling investment; (iv) selling an asset; (v) completing certain mergers; (vi) granting a guarantee of third-party indebtedness; (viii) making a loan to a third party; (ix) permitting a dividend blocker; (x) entering into a transaction with an affiliate; or (xi) granting a lien. Each of these covenants is subject to customary carve-outs, permissions, and certain debt baskets, and for so long as the group remains listed with a senior secured net leverage that does not exceed 3.50x, the restrictions specified in paragraphs (i) to (x) (inclusive) are suspended. Based on the above, no covenant testing was required as of December 31, 2024. 225 Contents About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices 4.3 Aging of Financial Liabilities Contractual undiscounted cash flows from financial liabilities are presented below. USD million Notes Less than 6 months 6 to 12 months 1 to 3 years Over 3 years Total Lease liabilities 3.2 6.6 6.6 24.6 33.0 70.8 Non-current interest-bearing liabilities (Facility B)¹ 4.2 14.0 14.0 436.8 - 464.8 Liability related to the settlement of the Ocado litigation 4.2 61.5 - - - 61.5 Current interest-bearing liabilities (Facility B)2 1.2 - - - 1.2 Trade payables 2.7 41.2 - - - 41.2 Total at December 31, 2024 124.6 20.6 461.4 33.0 639.6 Lease liabilities 3.2 6.0 6.0 23.1 30.5 65.7 Non-current interest-bearing liabilities (Facility B)¹ 4.2 15.9 15.9 484.3 - 516.1 Liability related to the settlement of the Ocado litigation 63.5 63.5 63.5 - 190.6 Current interest-bearing liabilities (Facility B)² 1.2 - - - 1.2 Trade payables 2.7 43.8 - - - 43.8 Total at December 31, 2023 130.5 85.5 571.0 30.5 817.5 1 Cash flows disclosed for non-current interest-bearing liabilities (Facility B) include estimated interest payments based on current level of interest. 2 Current interest-bearing liabilities (Facility B) is presented under the line item “Other current liabilities” in the financial position. Reference is made to note 4.2 for reconciliation of changes in liabilities related to the settlement with Ocado Group. 226 Contents About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices 4.3 Aging of Financial Liabilities Reconciliation of changes in liabilities incurred as a result of financing activities in 2024: Non-cash changes USD million Notes 01.01.2024 Cash flow effect Foreign exchange movement New leases recognized Other changes 31.12.2024 Lease liabilities 3.2 57.8 -12.0 -2.5 16.0 3.8 63.0 Non-current interest-bearing liabilities (Facility B) 4.2 432.8 -32.2 17.8 - - 418.4 Current interest-bearing liabilities (Facility B) 1.2 -1.2 - - 1.2 1.2 Total liabilities from financing 491.9 -45.4 15.3 16.0 5.0 482.6 Reference is made to note 4.2 for reconciliation of changes in liabilities related to the settlement with Ocado Group. The ‘Other changes’ column includes the effect of reclassification of non-current portion of lease liabilities, the effect of accrued interest during the year, and amortization on interest-bearing liabilities. The group classifies interest paid as cash flows from financing activities. 227 Contents About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices 4.3 Aging of Financial Liabilities Reconciliation of changes in liabilities incurred as a result of financing activities in 2023: Non-cash changes USD million Notes 01.01.2023 Cash flow effect Foreign exchange movement New leases recognized Other changes 31.12.2023 Lease liabilities 3.2 35.7 -7.5 3.0 23.8 2.8 57.8 Non-current interest-bearing liabilities (Facility B) 4.2 421.8 -31.0 9.4 - 32.7 432.8 Current interest-bearing liabilities (Facility B) 1.0 -1.0 - - 1.2 1.2 Total liabilities from financing 458.5 -39.6 12.4 23.8 36.7 491.9 Cash flow effects related to non-current interest-bearing liabilities disclosed above consist of interest payments. The ‘Other changes’ column includes the effect of reclassification of non-current portion lease liabilities, the effect of accrued interest during the year, and amortization on interest-bearing liabilities. The group classifies interest paid as cash flows from financing activities. 228 Contents 4.4 Cash and Cash Equivalents About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices The group has a cash-pool arrangement in DNB held by AutoStore AS. The system is a multi-currency group account system that consists of three group accounts in NOK, USD, and EUR, that are linked to a common limit account. The cash pool arrangement is presented gross and classified as bank deposit, unrestricted in the consolidated statement of financial position. There is no net credit facility in the group’s cash pool arrangement. For the group’s credit facility (RCF), reference is made to note 4.2. USD million 31.12.2024 31.12.2023 Bank deposits, unrestricted 292.6 243.3 Bank deposits, restricted 3.4 9.9 Total cash and cash equivalents 296.1 253.3 Bank deposits, restricted, consist of deposits and employee tax funds. 229 Contents 4.5 Finance Income and Finance Costs About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Net foreign exchange differences mainly relate to changes in foreign exchange gain/loss on the group’s interest-bearing liabilities in currencies other than the functional currency (note 4.2). Interest income and interest expenses on interest-bearing liabilities and receivables are calculated using the effective interest method. Interest expenses mainly relate to interest on the group’s interest- bearing liabilities (note 4.2). Interest expense on lease liabilities relates mainly to office buildings and production facilities in Norway, Poland, the U.S., and Thailand, as well as vehicles. Interest expense on lease liabilities represents the interest rate implicit in the lease, or the incremental borrowing rate used to measure the lease liabilities recognized in the financial position. For further information, reference is made to note 3.2. USD million Notes 2024 2023 Finance income Net foreign exchange gain - 2.0 Interest income Financial assets 11.0 8.4 Other financial income 0.2 - Total finance income 11.2 10.4 Finance expense Net foreign exchange loss 8.4 - Interest expenses Interest-bearing liabilities 4.2 32.2 31.0 Amortization of transaction cost Interest-bearing liabilities 4.2 2.0 1.7 Interest on lease liability Lease liabilities 3.2 3.8 2.8 Other financial expenses Interest-bearing liabilities 4.2 11.1 7.5 Total finance expense 57.6 43.1 230 Contents 4.6 Fair Value Measurement About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Accounting policies In determining fair value measurement, AutoStore uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. Fair value disclosures Management has assessed that the fair values of cash and short- term deposits, trade and other receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments and the current risk-free interest rates. Interest-bearing liabilities (Facility B) The fair values of the group’s interest-bearing liabilities (Facility B) are determined by using the Discounted Cash Flow (DCF) method using a discount rate that reflects the issuer’s borrowing rate as of the end of the reporting period. The fair values of the group’s interest-bearing liabilities (Facility B) are in most cases similar to the carrying amount, as the interest rates are floating and the non- performance risk as of December 31, 2024, was assessed to be insignificant. The group’s interest-bearing liabilities (Facility B) are classified as Level 2 in the fair value hierarchy as the discount rate, which is considered the lowest level input that is significant to the fair value measurement, is composed of building blocks such as market interest (e.g. SOFR) and credit spreads, which are either directly or indirectly observable. Liability related to the settlement with Ocado Group The fair value of the liability related to the settlement of the Ocado Group litigation is determined using the Discounted Cash Flow (DCF) method using a discount rate that reflects the prevailing market rate of interest for a similar instrument with a similar credit rating. The liability is classified as Level 2 in the fair value hierarchy as the discount rate, which is considered the lowest level input that is significant to the fair value measurement, is composed of building blocks such as market interest and credit spreads, which are either directly or indirectly observable. Set out below is a comparison, by class, of the carrying amounts and fair values of the group’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values. 231 Contents 4.6 Fair Value Measurement About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million Notes Date Carrying amount Fair value Level 1 Level 2 Level 3 Liabilities disclosed at fair value Interest-bearing liabilities 4.2 December 31, 2023 434.1 434.1 X Interest-bearing liabilities 4.2 December 31, 2024 419.6 419.6 X Liability related to the settlement of the Ocado Group litigation 4.2 December 31, 2023 177.8 177.8 X Liability related to the settlement of the Ocado Group litigation 4.2 December 31, 2024 61.5 61.5 X 232 Contents 4.7 Financial Risk About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Overview AutoStore is exposed to a range of financial risks affecting its financial performance, including market risk, financial risk, credit risk, and liquidity risk. The group seeks to minimize potential adverse effects of such risks through sound business practice, risk management, and hedging. At the current time, the liquidity risk of the group is assessed to be low based on the operating cash flows, scheduled repayments of debt, and the availability of credit facilities. Risk management is carried out by the group’s management under policies approved by the Chief Executive Officer. The Board reviews and agrees on policies for managing each of these risks, which are summarized below. Market risks AutoStore is exposed to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk includes interest rate risk and foreign currency risk. Interest rate risk AutoStore’s exposure to the risk of changes in market interest rates relates primarily to the group’s Senior Facilities, which have base interest rates in SOFR and EURIBOR. The group does not currently hedge the base interest rates. Interest rate sensitivity The table below shows the sensitivity of the group’s Senior Facilities. The sensitivity to a possible change in interest rates, with all other variables held constant, on the group’s profit before tax, is illustrated below. In calculating the sensitivity analyses, the group assumes that the sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective financial risks. USD million Increase/decrease in basis points¹ Increase/decrease in profit before tax Increase/decrease in equity (OCI effects)² December 31, 2024 +/-100 4.8 - December 31, 2023 +/-100 6.1 - 1 100 bps was selected by forecasting the future interest rate change. 2 The group has no financial instruments through OCI and hence the effects on equity are zero. 233 Contents 4.7 Financial Risk About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Foreign currency risk The group’s international business activities, supply chain, and global distribution network expose it to foreign exchange transaction risk and translation risk. The group’s risk of changes in foreign exchange rates relates primarily to the group’s operating activities (revenues and expenses denominated in a foreign currency), external financing through interest-bearing liabilities, and the group’s net investment in foreign subsidiaries. The group’s presentation currency is USD. Accordingly, changes in the value of the currencies in which it generated revenues and incurs costs in relation to USD affect the group’s overall revenue, profit or loss, and financial position. Transactional risk arises when the group’s entities enter into transactions in currencies different than the entities’ functional currencies. A significant part of revenues are denominated in EUR and USD, with a smaller portion in NOK. Furthermore, a significant amount of the materials used in the group’s production are sourced from suppliers located in countries that have adopted PLN and EUR. The group’s suppliers are generally paid in EUR in addition to PLN; as such, the group has significant costs in EUR and PLN. Aluminum is a key material which follows global market prices set in USD. A large portion of the group’s operations are conducted in Norway, where transactions to a large extent are made in NOK and, as such, the group has significant costs in NOK. In case of unfavorable exchange rate fluctuations, such as a strong currency in the country of a supplier, and AutoStore due to competitive pressure being unable to raise its prices, the group may face reduced gross margins, leading to a decline in net results and a competitive disadvantage. Products and services provided and invoiced by the group in markets with weaker local currencies may also lead to lower profit margins, which could have an adverse effect on the group’s business, results of operations, financial position, and cash flows. AutoStore tries to limit its foreign currency exposure through having similar currencies for its revenues and operating expenses. The group’s interest-bearing liabilities are also denominated in the foreign currencies, EUR and USD, thus, the group has a natural hedge which reduces the impact from currency fluctuations in these currencies. The group does not hedge currency exposure with the use of financial instruments at the current time, but monitors the net exposure over time. The group also has foreign currency exposure to its liability related to the Ocado Group settlement, which is denominated in GBP. 234 Contents 4.7 Financial Risk About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Foreign currency sensitivity The following table illustrates the sensitivity of AutoStore’s interest- bearing liabilities denominated in USD, EUR, and GBP to a hypothetical increase or decrease in the foreign exchange rates in the period, holding all other variables constant. USD million Date Change in FX rate Increase/decrease in profit before tax Increase/decrease in equity (OCI effects) ¹ Increase/decrease in NOK/USD December 31, 2024 +/- 10% 16.7 - Increase/decrease in NOK/EUR December 31, 2024 +/- 10% 25.3 - Increase/decrease in NOK/GBP December 31, 2024 +/- 10% 6.1 - USD million Date Change in FX rate Increase/decrease in profit before tax Increase/decrease in equity (OCI effects) ¹ Increase/decrease in NOK/USD December 31, 2023 +/- 10% 16.7 - Increase/decrease in NOK/EUR December 31, 2023 +/- 10% 27.0 - Increase/decrease in NOK/GBP December 31, 2023 +/- 10% 17.8 - 1 The group has no financial instruments through OCI and hence the effects on equity are zero. 235 Contents 4.7 Financial Risk About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The group is mainly exposed to credit risk from its operating activities. In order to offset the risk on trade receivables, the company has entered into a credit insurance agreement. Additionally, the group manages its credit risks by trading only with recognized, creditworthy third parties (mainly distributors/partners). It is the group’s policy that all customers wishing to trade on credit terms are subject to credit verification procedures, which include an assessment of credit rating, short-term liquidity, and financial position. The group obtains sufficient collateral (where appropriate) from customers as a means of mitigating the risk of financial loss from defaults. In addition, receivable balances are monitored on an ongoing basis, with the result that the group’s exposure to losses has been insignificant and the overall credit risk is assessed as low (i.e. the group has not experienced any losses in the past). For an overview of the aging of trade receivables and the expected credit losses recognized for trade receivables, reference is made to note 2.6. Liquidity risk Liquidity risk is the risk that the group will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The group monitors its risk of a shortage of funds by monitoring its working capital, overdue trade receivables, and establishing credit facilities. The group’s business requires access to significant credit and guarantee lines and other financing instruments. The business could be negatively affected if the group is unable to meet its capital requirements in the future, for example as a result of a weak financial market environment, a significant deterioration of its credit standing, a breach of or default under a credit facility agreement, or if access to capital becomes cost-prohibitive. The group’s business activities could also be negatively affected if its customers or suppliers do not have access to financing on economically viable terms. The group’s objective is to maintain a balance between continuity of funding and flexibility through the use of credit facilities and the Senior Facilities agreement to finance working capital and investments. The group has flexible debt financing through a Revolving Credit Facility as part of the Senior Facilities and may further draw funds or establish additional incremental revolving facilities if deemed necessary (note 4.2). Additionally, the group has a significant positive cash flow from operating activities, which limits its liquidity risk. An overview of the maturity profile of the group’s financial liabilities with corresponding cash flow effects is presented in note 4.3. 236 Contents 4.8 Equity and Shareholders About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices For the purpose of AutoStore’s capital management, capital includes issued capital and all other equity reserves attributable to the equity holders of the parent. The primary objective of the group’s capital management is to ensure that it maintains healthy working capital and financial stability to support its growing business operations and maximize shareholder value. The group manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, the group may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares, perform prepayments of debt, or draw on short-term credit. To achieve this overall objective, the group’s capital management, among other things, aims to ensure that it reinvests or returns excess cash flows from operations that are not necessary to maintain a healthy operating working capital to its investors. There has been no breach of the financial covenants in the current or previous periods. Reference is made to note 4.2. The shares are issued and fully paid, and include a total of 68,907,404 treasury shares as of December 31, 2024. The authorized share capital of AutoStore Holdings Ltd. is USD 42,500,000, consisting of 4,250,000,000 shares. Reconciliation of the group’s equity is presented in the statement of changes in equity. Issued capital and reserves Share capital in AutoStore Holdings Ltd. Number of shares issued and fully paid Par value per share (USD) Financial position (USD) January 1, 2023 3,428,540,429 0.01 34.29 December 31, 2023 3,428,540,429 0.01 34.29 December 31, 2024 3,428,540,429 0.01 34.29 237 Contents 4.8 Equity and Shareholders About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Shareholders of the group (AutoStore Holdings Ltd.) Country Account type Total shares Ownership Voting rights The Bank of New York Mellon U.S. Nominee 1,358,881,711 39.6% 39.6% Citibank, N.A. Ireland Nominee 956,270,232 27.9% 27.9% Alecta Tjanstepension Omsesidigt Luxembourg Ordinary 103,556,470 3.0% 3.0% The Bank of New York Mellon U.S. Nominee 85,404,717 2.5% 2.5% AutoStore Holdings Ltd. Norway Ordinary 68,907,404 2.0% 2.0% State Street Bank and Trust Comp U.S. Nominee 65,948,380 1.9% 1.9% Folketrygdefondet Norway Ordinary 49,262,367 1.4% 1.4% Sumitomo Mitsui Trust Bank (U.S.A) U.S. Nominee 47,591,047 1.4% 1.4% Verdipapirfond Odin Norge Norway Ordinary 45,692,608 1.3% 1.3% The Northern Trust Comp UK Nominee 35,000,134 1.0% 1.0% CACEIS Bank Ireland Nominee 24,521,167 0.7% 0.7% JPMorgan Chase Bank, N.A., London UK Nominee 23,967,179 0.7% 0.7% Lyngneset Invest AS Norway Ordinary 23,183,898 0.7% 0.7% State Street Bank and Trust Comp U.S. Nominee 22,788,931 0.7% 0.7% State Street Bank and Trust Comp U.S. Nominee 17,253,896 0.5% 0.5% State Street Bank and Trust Comp U.S. Nominee 17,097,552 0.5% 0.5% Skandinaviska Enskilda Banken AB Sweden Nominee 14,696,313 0.4% 0.4% Brown Brothers Harriman (Lux.) SCA Luxembourg Nominee 14,243,249 0.4% 0.4% The Northern Trust Comp UK Nominee 14,200,309 0.4% 0.4% State Street Bank and Trust Comp U.S. Nominee 12,980,114 0.4% 0.4% Other shareholders 427,092,751 12.5% 12.5% At December 31, 2024 3,428,540,429 100.0% 100.0% The shareholder information disclosed is from the Euronext VPS share register. 238 Contents 4.8 Equity and Shareholders About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices The group did not pay dividends to shareholders during the twelve- month period ended December 31, 2024 or the twelve-month period ended December 31, 2023. There are no proposed dividends as of the date of authorization of this annual report. For information on the employee share purchase plan (ESPP) and the share-based bonus program (SBP), and long-term incentive program (LTIP), reference is made to note 7.4, the Remuneration Policy, and the Remuneration Report for 2024. Share price information 31.12.2024 Share price (NOK) 11.11 Number of shares 3,428,540,429 Market capitalization (NOK) 38,091,084,166 USD/NOK exchange rate 11.35 Market capitalization (USD) 3,356,042,658 239 Contents 5.1 Taxes 5 Tax About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices 240 Contents 5.1 Taxes About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices AutoStore Holdings Ltd. is considered a Norwegian entity for taxation purposes. Accounting policies The tax charge represents the sum of current tax payable and effects of changes in deferred tax amounts. Tax is recognized in the income statement except to the extent that it relates to items recognized in other comprehensive income or equity, in which case it is recognized in other comprehensive income or equity as appropriate. Current tax consists of the expected tax payable for the year and any adjustment to tax payable for previous years. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases, and on unused tax losses and credits carried forward, subject to the initial recognition exemption. A deferred tax asset is recognized only to the extent that it is probable that future taxable income will be available against which the asset can be utilized. Deferred tax assets and liabilities are offset to the extent that the deferred taxes relate to the same fiscal authority, and there is a legally enforceable right to offset current tax assets against current tax liabilities. USD million 2024 2023 Income tax expense Current income tax expense in respect of current year 51.5 -7.2 Prior period adjustments - 2.5 Current income tax expense/(credit) 51.5 -4.6 Origination and reversal of temporary differences -12.0 -9.1 Change in deferred tax recognition - - Prior period adjustments - - Deferred tax income/(expense) -12.0 -9.1 Income tax expense/(credit) 39.5 -13.7 241 Contents 5.1 Taxes About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million 2024 2023 Deferred tax assets Property, plant and equipment -0.4 0.8 Intangible assets - - Other current assets -2.4 -11.1 Liabilities -4.4 -16.4 Losses carried forward (including tax credit) - -0.8 Basis for deferred tax assets -7.1 -27.5 Calculated deferred tax assets 1.8 5.7 - Deferred tax assets not recognized - - Net deferred tax assets recognized in balance sheet 1.8 5.7 Deferred tax liabilities Property, plant and equipment (including leased assets) 0.3 4.7 Intangible assets 328.0 400.9 Other current assets - -0.2 Liabilities - -42.4 Basis for deferred tax liabilities 328.4 363.0 Calculated deferred tax liabilities 72.2 96.7 - Deferred tax not recognized - - Net deferred tax liabilities recognized in balance sheet 72.2 96.7 Deferred tax liabilities mainly relate to intangible assets recognized through the acquisition of AutoStore group in 2019 (refer to note 3.4) 242 Contents 5.1 Taxes About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices The Group's operations are subject to income tax in various foreign jurisdictions. The statutory income tax rates vary from 15% to 25%, which results in a difference between the statutory income tax rate in Norway and the average tax rate applicable to the group. The average tax rate for the group's deferred tax liabilities is 22.4% for 2024 and 26.6% for 2023. The average tax rate for the group's tax expense is 22.6% in 2024 (29.6%). A reconciliation of the differences between the theoretical tax expense under the rate applicable in Norway and the actual tax expense is presented in the table below. Pillar Two: Global Minimum Taxation Pillar Two introduces a global minimum Effective Tax Rate (ETR) via a system where multinational groups with consolidated revenue over €750m are subject to a minimum ETR of 15% on income arising in low-tax jurisdictions. AutoStore is currently below the threshold. USD million 2024 2023 Profit/loss before taxes 176.1 -46.3 Tax expense 22% (Norwegian tax rate)1 38.7 -10.2 Permanent differences 1.6 1.4 Change to prior year tax expense - -2.5 Effects of foreign tax rates -0.8 -0.3 Currency effects - -2.0 Other adjustments - -0.1 Recognized income tax expense 39.5 -13.7 1 The corporate tax rate in Norway (22%) is used as a starting point, as the parent company AutoStore Holdings Ltd. is considered a Norwegian entity for taxation purposes. 243 Contents 6 Group Structure 6.1 Interest in Other Entities 6.2 Earnings per Share About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices 244 Contents 6.1 Interest in Other Entities About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices The subsidiaries of AutoStore Holdings Ltd. are presented below: Consolidated entities Office Currency Shareholding Group's voting ownership share Automate Intermediate Holdings 2 S.à r.l. Luxembourg EUR 100% 100% Automate HoldCo 1 AS Norway NOK 100% 100% PIO AS Norway Norway NOK 100% 100% AutoStore AS Norway NOK 100% 100% AutoStore Technology AS Norway NOK 100% 100% AutoStore Sp. Z o.o. Poland PLN 100% 100% AutoStore System Inc. U.S. USD 100% 100% AutoStore System Limited UK GBP 100% 100% AutoStore SAS France EUR 100% 100% AutoStore System GmbH Germany EUR 100% 100% AutoStore System K.K. Japan JPY 100% 100% AutoStore System Ltd. South Korea KRW 100% 100% AutoStore System AT GmbH Austria EUR 100% 100% AutoStore System S.r.l. Italy ITL 100% 100% AutoStore System S.L. Spain EUR 100% 100% AutoStore System AB Sweden SEK 100% 100% AutoStore System Pte Ltd. Singapore SGD 100% 100% Locai Solutions Inc. U.S. USD 100% 100% AutoStore Co Ltd. Thailand THB 100% 100% PIO Inc. 1 U.S. USD 100% 100% 1 Owned 100% by PIO AS. All subsidiaries are included in the consolidated statement of financial position. 245 Contents 6.2 Earnings per Share About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year, plus the weighted average number of ordinary shares that might be issued under any of the group’s compensation programs which are equity settled. In 2024, this applied to the group’s long-term incentive plan, employee share purchase plan, and the share-based bonus program, which may be settled using the group’s treasury shares. Reference is made to note 7.4 for further details on the group’s share-based payment programs. The following table reflects the income and share data used in the basic and diluted EPS calculations. USD million and shares outstanding (in millions) 2024 2023 Profit/loss for the period attributable to ordinary equity holders of the parent for basic earnings 136.6 -32.6 Weighted average number of ordinary shares for basic EPS 3,358.6 3,350.0 Weighted average number of ordinary shares adjusted for the effect of dilution 3,431.7 3,418.9 Basic earnings per share (USD) 0.041 -0.010 Diluted earnings per share (USD)1 0.040 -0.010 1 The group has equity-settled share-based options (note 7.4), however, as all of the potential ordinary shares from these share-based options were anti-dilutive in 2023 (due to the reported loss in the consolidated group), the diluted earnings per share is the same as basic earnings per share. The potential ordinary shares are disclosed in note 2.4. 246 Contents 7 Other Disclosures 7.1 Provisions 7.2 Other Commitments and Contingencies 7.3 Related-party Transactions 7.4 Share-based Payments 7.5 Events after the Reporting Period About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices 247 Contents 7.1 Provisions About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Accounting policies AutoStore classifies provisions in the following categories: – Assurance-type warranties: A provision for expected warranty claims on products sold during the year, based on experience of the level of repairs and returns. – Onerous shared cost: A provision for unfavorable terms related to the service element (shared cost) in a lease agreement. The provision includes the expected future payments above the market rate for these services discounted to present value. – Social security for share-based payments: Contains a provision for the accrued social security on share options and restrictive share units, which will be paid when the options are exercised. – Refund liability: A provision for the expected discount to be refunded to customers (distributors) after the reporting date. The provision is recognized as variable consideration by applying the expected value method to the discount based on historical sales and specific forward-looking factors. Reference is made to note 2.1. A provision is made and calculated based on management assumptions at the time the provision is made and is updated as and when new information becomes available. All provisions are reviewed at the end of the financial year. 248 Contents 7.1 Provisions About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Reconciliation of provisions: USD million Assurance- type warranties Onerous shared cost Social security for share-based payments Salary- related costs Refund liability Other provisions Total At January 1, 2023 0.2 3.6 17.9 5.5 18.2 9.4 54.9 Additional provisions made 0.2 - 0.2 - - 0.4 0.8 Remeasurement - - 2.0 - - - 2.0 Amounts used -0.3 -0.5 -3.5 -5.5 -18.2 -9.4 -37.4 Currency translation effects - - -0.5 - - - -0.5 At December 31, 2023 0.2 3.1 16.1 - - 0.4 19.8 Additional provisions made 0.4 - 0.1 1.5 - 3.9 5.8 Remeasurement - - - - - - - Amounts used - -0.8 -9.2 - - -0.2 -10.2 Currency translation effects - - -0.6 - - - -0.6 At December 31, 2024 0.6 2.3 6.3 1.5 - 4.1 14.9 Current provisions 0.6 0.3 6.3 1.5 - -1.2 7.6 Non-current provisions - 2.0 - - - 5.3 7.3 Changes in the provision of social security tax were USD -9.8 million as a result of the amount used due to the exercise was offset by revaluation due to an increase in the underlying share price. The provision for social security for share-based payments will be settled when the options are exercised. Reference is made to note 7.4. The onerous shared cost provision is expected to be settled at the end of 2028 with approximately similar amounts each year. 249 Contents 7.2 Other Commitments and Contingencies About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Settlement of Ocado Group litigation On 22 July 2023, AutoStore and Ocado Group announced a global settlement which brings to an end all current litigation between the parties. This includes the litigation between the parties in the International Trade Commission (ITC), the United States District Court for the District of New Hampshire, the U.S. Patent Trial and Appeal Board (PTAB), the Munich and Mannheim District Courts in Germany, the German Patent Office, the UK High Court and the European Patent Office. The other principal terms of the settlement are: – All patent litigation claims withdrawn globally – Global cross-license of each other’s pre-2020 patents – Both companies can continue to use and market all their own existing products without challenge – Ocado Group retains exclusive rights to the Single Space Robot – AutoStore will pay GBP 200 million to Ocado Group in monthly installments over two years, commencing in July 2023 Whilst the agreement gives both companies access to parts of each other’s patent portfolios for them to use or develop their own products, it does not provide for collaboration or technology assistance between the companies or access to actual products. The other terms of the agreement remain confidential. To reflect the GBP 200 million settlement payment to Ocado Group, AutoStore recorded an operating expense of USD 239.0 million in 2023, with a corresponding financial liability discounted with the estimated time value of money, using the prevailing market interest rate for a similar instrument with a similar credit rating (8.4%) in accordance with IFRS 9. Reference is made to note 4.2. The discount rate of 8.4% is applied for all periods throughout the life of the liability. As of December 31, 2024 the outstanding liability is USD 61.5 million. Significant accounting judgments The settlement agreement between Ocado Group and AutoStore has required significant accounting judgment, where the key consideration has been related to whether the obtained access to Ocado’s patents and the access granted to own patents could potentially lead to an allocation of the GBP 200 million to any intangible asset. However, management has concluded that no parts of the GBP 200 million should be allocated to any intangible asset (or other assets) as the recognition criteria for an intangible asset are not considered to be met. Other commitments The group does not have other significant commitments to be disclosed. 250 Contents 7.3 Related-party Transactions About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Related parties are group companies, major shareholders, members of the Board, executive management in the parent company, and the group subsidiaries. Notes 6.1 and 4.8 provide information about the group structure, including details of the subsidiaries and the holding company. Significant agreements and remuneration paid to the Board for the current and prior period appear in note 2.4. Fortna, Inc. is a global distribution partner of AutoStore systems. Thomas H. Lee Advisors LLC. (THL) is considered an associate of both AutoStore Holdings Ltd. and Fortna, Inc., therefore Fortna, Inc. is considered a related party. Sales of goods and services to Fortna, Inc. were USD 26.4 million in 2024 and USD 127.5 million in 2023. Trade receivables as of December 31, 2024 were USD 6.9 million and as of December 31, 2023 USD 22.8 million. 251 Contents 7.4 Share-based Payments About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Accounting policies The group has share-based programs for its key employees, which are accounted for as equity-settled transactions. The share option program for key employees gives the employee the right to purchase shares in the ultimate parent company AutoStore Holdings Ltd. The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognized in employee benefits expense, together with a corresponding increase in equity (other capital reserves), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit or loss for a period represents the movement in cumulative expense recog- nized as of the beginning and end of that period. Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the group’s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award, unless there are also service and/or performance conditions. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An additional expense, measured as of the date of modification, is recognized for any modification that increases the total fair value of the share-based payment transaction or is otherwise beneficial to the employee. Where an award is canceled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. Reference is made to note 6.2 for the potential impact of share options on the group’s earnings per share. 252 Contents 7.4 Share-based Payments About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Significant accounting estimates and assumptions Social security contributions The group recognizes a liability for social security contributions with respect to options to be exercised. The amount of the liability is dependent on the number of options that are expected to be exercised (that is, vesting conditions are taken into account). The expense is allocated over the period from the grant date to the end of the vesting period. From the end of the vesting period to the date of actual exercise, the liability is adjusted by reference to the current market value of the shares (that is, fair value of the liability at the end of the reporting period). Social security contribution is calculated for the intrinsic value of the options (share price – strike value) over the vesting period. Valuation assessment The group has performed valuation calculations for the option program for both the fair value at grant date, subsequent measurement, and the ongoing calculation for social security contribution. See below for a summary of the model applied, inputs to the model, and calculation of the fair value at grant date. The fair value of the share options is estimated at the grant date using the Black-Scholes-Merton model and a Monte Carlo Simulation for the options, taking into account the terms and conditions on which the share options were granted. Option programs In 2019, the group entered into option agreements, awarding non- transferable options to, inter alia certain key employees. In total, 163,338,159 options have been issued to 25 option-holders, each option with a strike price equal to the fair market value of the underlying shares at the time the options were issued, which at the time was EUR 0.33, equivalent to USD 0.38 per option. The options are divided into service (33%) and performance (67%) options. In connection with SoftBank’s acquisition of 40% of AutoStore in 2021, 100% of the performance options were deemed vested immediately prior to the closing of the SoftBank transaction. Further, all service options were deemed vested as if they had vested on a quarterly basis. The unvested service options shall continue to vest on a quarterly basis (i.e. 5% each quarter) from the grant date until the fifth anniversary. In connection with the closing of the SoftBank transaction, the option holders were provided with the opportunity to exercise approximately 40% of their vested options and, as a result, sell the underlying shares to SoftBank. The service requirement of all options shall be deemed satisfied immediately prior to (but subject to the consummation of) a change of control, given that the option holder is, and has been, continuously employed by and continues to provide services to the group through the date of such consummation, and as otherwise set forth in an option agreement. 253 Contents 7.4 Share-based Payments About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices Options awarded under LTIP In 2022, the group introduced a new long-term incentive plan (“LTIP”) for certain members of the company’s management and other leading employees. Under the LTIP, the executives are awarded a conditional grant of share options, performance share units (“PSUs”), and/or restricted stock units (“RSUs”). On September 11, 2024, the group approved new grants under the LTIP, which resulted in the total number of options awarded under the LTIP of 5,975,728, where each option will give the holder the right to acquire one AutoStore share from the company. The share options under the LTIP for 2023 shall vest on September 11, 2027, subject to continued employment on each vesting date. The weighted average remaining contractual life for the share options outstanding as of December 31, 2024 was 4.67 years. The weighted average fair value of options granted during the year was USD 3.6 million. PSUs awarded under LTIP The total number of PSUs that will be awarded under the LTIP for 2024 is 1,238,843. Vesting of the PSUs is based on service criteria and the achievement of financial or other performance goals, with the time-based vesting criteria matching the vesting schedule of the share options. Once vested, each PSU will award the holder with one AutoStore share (settled through treasury shares). RSUs awarded under LTIP The total number of RSUs that will be awarded under the LTIP for for 2024 is 2,103,958. The RSUs are subject to a time-based vesting and shall vest on the date falling 36 months following the date of grant. Once vested, each RSU will award the holder with one AutoStore share (settled through treasury shares). Shares acquired by permanent employees Starting in 2023, certain permanent employees in the group were given the opportunity to participate in the employee share purchase plan (“ESPP”). The total amount of ESPP shares awarded in 2024 was 658,184, which were delivered using treasury shares at a purchase price of NOK 11.48. The ESPP shares are subject to a two-year lock-up period. Annual share-based bonus program The annual share-based bonus program (“SBP”) entitles permanent employees, not on existing individual short term incentives schemes, to be eligble for a bonus linked to the company meeting annual financial performance targets. If the company reaches the yearly financial targets, an amount similar to a percentage of base pay per employee will be transferred to the employee. In 2024 and in 2023, the financial targets were not met, and the associated cost was subsequently reversed. 254 Contents 7.4 Share-based Payments About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices USD million 2024 2023 Expenses arising from equity-settled share-based payment transactions -2.3 -1.5 Total expenses arising from share-based payment transactions -2.3 -1.5 USD 2.3 million is the IFRS 2 cost of the options. The expense is based on estimated fair value of the options on grant date and recognized over the vesting period. Movements during the year The following table illustrates the number and movements in share options during the year. Number of and movements in share options 2024 2023 Outstanding at 1 January 73,591,851 90,661,375 Granted during the period 6,302,190 2,114,556 Exercised during the period -3,108,449 -18,822,573 Released during the period -72,580 - Expired during the year -21,919 -361,507 Outstanding at December 31 76,691,093 73,591,851 Fully vested, not yet exercised at December 31 66,585,655 63,909,090 255 Contents 7.4 Share-based Payments About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices The following tables list the inputs to the models used for the option program for the year ended December 31, 2024: 2019-2020 incentive program 2019-2020 Service options 2019-2020 Performance options Weighted avg. fair values at the measurement date €0.07 €0.03 Dividend (%) - - Expected volatility 25% 25% Risk-free interest rate 1.19% 1.25% Expected life of share options (years) 4.3 5.0 Weighted average share price €0.33 €0.33 Model used Black-Scholes Merton The incentive program is presented in EUR as this program was originally denominated in EUR. RSU board incentive program 2024 RSU 2023 RSU 2022 RSU Weighted avg. fair values at the measurement date $0.00 $1.07 $1.82 Dividend (%) - - - Expected volatility - 72% 79% Risk-free interest rate - 4.02% 3.06% Expected life of share options (years) 0.0 3.0 2.8 Weighted average share price $0.00 $1.07 $1.82 Model used Black-Scholes Merton 256 Contents 7.4 Share-based Payments About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices 2024 LTI program 2024 PSU and options 2024 RSU Weighted avg. fair values at the measurement date $5.73 $12.18 Dividend (%) - - Expected volatility 62% - Risk-free interest rate 3.03% - Expected life of share options (years) 4.0 0.0 Weighted average share price $12.18 $0.00 Model used Black-Scholes Merton 2023 LTI program 2023 PSU and options 2023 RSU Weighted avg. fair values at the measurement date $0.96 $2.17 Dividend (%) - - Expected volatility 56% -% Risk-free interest rate 3.89% -% Expected life of share options (years) 4.0 0.0 Weighted average share price $2.17 $0.00 Model used Black-Scholes Merton The expected life of the share options is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility is based on historical data for comparable companies, as the group has a limited number of share transactions. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome. 257 Contents 7.5 Events After the Reporting Period About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Notes 1 Background 2 Operating Performance 3 Asset Base 4 Financial Instruments, Risk, and Equity 5 Tax 6 Group Structure 7 Other Disclosures Appendices U.S. tariffs AutoStore continues to closely monitor the recent developments related to U.S. tariffs. In 2024, North America accounted for approximately 25% of AutoStore’s revenue. Based on current information – and given that the company’s products are manufactured outside the U.S. and distributed through a partner network – AutoStore anticipates a moderate direct impact over time. While tariffs may increase costs for distribution partners, any resulting end customer price adjustments are expected to be moderate and manageable. 258 Contents Appendices About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Independent Auditor’s Report Independent Auditor’s Report on Sustainability Responsibility Statement Alternative Performance Measures Definitions 259 Contents Independent Auditor’s Report About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Independent Auditor’s Report Independent Auditor’s Report on Sustainability Responsibility Statement Alternative Performance Measures Definitions 260 Contents About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Independent Auditor’s Report Independent Auditor’s Report on Sustainability Responsibility Statement Alternative Performance Measures Definitions 261 Contents Independent Auditor’s Report on Sustainability About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Independent Auditor’s Report Independent Auditor’s Report on Sustainability Responsibility Statement Alternative Performance Measures Definitions 262 Contents About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Independent Auditor’s Report Independent Auditor’s Report on Sustainability Responsibility Statement Alternative Performance Measures Definitions 263 Contents Responsibility Statement Oslo, April 23, 2025 The Board of Directors of AutoStore Holdings Ltd. Jim C. Carlisle Co-chair Vikas J. Parekh Co-chair Andreas Hansson Board member Hege Skryseth Board member Kjersti Wiklund Board member Michael K. Kaczmarek Board member Sumer Juneja Board member Viveka Ekberg Board member Mats Hovland Vikse Chief Executive Officer About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Independent Auditor’s Report Independent Auditor’s Report on Sustainability Responsibility Statement Alternative Performance Measures Definitions From the Board of Directors and CEO of AutoStore The Board of Directors and CEO of AutoStore confirm that, to the best of their knowledge, the consolidated Financial Statements for 2024 have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union as well as additional information requirements in accordance with the Norwegian Accounting Act, and give a true and fair view of the assets, liabilities, financial position, and profit or loss of the company and the group as a whole. The Board of Directors and CEO of AutoStore also confirm that, to the best of their knowledge, the Board of Directors Report, Corporate Governance Statement, and Sustainability Statements meet the information requirements of the Norwegian Accounting Act, European Sustainability Reporting Standards (ESRS), and the EU Taxonomy regulation. The accounting policies applied by management include a significant number of estimates, assumptions, and judgments, as described in note 1 to the consolidated Financial Statements. We also confirm that, to the best of our knowledge, the annual report provides a true and fair review of the development, performance, and financial position of the business and position of the company, together with a description of the principal risks and uncertainties facing the company, in accordance with the requirements of section 5-5a of the Norwegian Securities Trading Act and associated regulations. 264 Contents Alternative Performance Measures (APMs) About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Independent Auditor’s Report Independent Auditor’s Report on Sustainability Responsibility Statement Alternative Performance Measures Definitions To enhance investors’ understanding of the company’s performance, AutoStore presents certain alternative performance measures (APMs) as defined by the European Securities and Markets Authority (“ESMA”) in the ESMA Guidelines on Alternative Performance Measures 2015/1057. An APM is defined as a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specific in the applicable financial reporting framework (IFRS). The company uses APMs to measure operating performance and is of the view that the APMs provide investors with relevant and specific operating figures, which may enhance their understanding of AutoStore’s performance. The company uses the following APMs: adjusted EBIT, adjusted EBITDA, adjusted EBIT margin, adjusted EBITDA margin, EBIT, EBITDA, EBIT margin, EBITDA margin, simplified free cash flow, and simplified free cash flow conversion, as further defined below. The APMs presented below are not measurements of performance under IFRS or other generally accepted accounting principles, and investors should not consider any such measures to be an alternative to: (a) operating revenues or operating profit (as determined in accordance with IFRS or other generally accepted accounting principles) as a measure of AutoStore’s operating performance; or (b) any other measures of performance under generally accepted accounting principles. The APMs presented here may not be indicative of the company’s historical operating results, nor are such measures meant to be predictive of AutoStore’s future results. The company believes that the presented APMs are commonly reported by companies in the markets in which AutoStore competes and are widely used by investors to compare performance on a consistent basis without regard to factors such as depreciation, amortization, and impairment, which can vary significantly depending on accounting measures (in particular when acquisitions have occurred), business practice, or nonoperating factors. Accordingly, AutoStore discloses the APMs presented here to permit a more complete and comprehensive analysis of its operating performance relative to other companies across periods, and of the company’s ability to service its debt. Because companies calculate the presented APMs differently, AutoStore’s presentation of these APMs may not be comparable to similarly titled measures used by other companies. The company presents these APMs because it considers them to be important supplemental measures for prospective investors to understand the overall picture of profit generation through AutoStore’s operating activities. Adjustments are non-IFRS financial measures that the group considers to be an APM, and these measures should not be viewed as a substitute for any IFRS financial measures. 265 Contents About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Independent Auditor’s Report Independent Auditor’s Report on Sustainability Responsibility Statement Alternative Performance Measures Definitions The APMs used by AutoStore are set out below (presented in alphabetical order): – Adjusted EBIT is defined as the profit/loss for the year/ period before net financial income (expense) and income tax expense (EBIT), adjusted for certain items affecting comparability, and includes adjustments for share-based compensation expenses and related payroll taxes; costs incurred in connection with sale and purchase of the group’s shares; litigation costs incurred in connection with the Ocado Group litigation proceedings, which includes costs related to the company’s use of external legal counsel and costs related to settlement of all claims between the parties; cost to external advisors associated with refinancing of the group’s debt facilities; and amortization of assets recognized as part of the purchase price allocation (PPA) made when Thomas H. Lee Partners acquired the group from EQT. – Adjusted EBITDA is defined as the profit/loss for the year/period before net financial income (expense), income tax expense, and depreciation and amortization (EBITDA), adjusted for certain items affecting comparability, and includes adjustments for share-based compensation expenses and related payroll taxes; costs incurred in connection with sale and purchase of the group’s shares; litigation costs incurred in connection with the Ocado Group litigation proceedings, which include costs related to the company’s use of external legal counsel and costs related to settlement of all claims between the parties; and costs to external advisors associated with refinancing of the group’s debt facilities. – Adjusted EBIT margin is defined as adjusted EBIT as a percentage of revenues. – Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of revenues. – EBIT is defined as the profit/loss for the year/period before net financial income (expense) and income tax expense. – EBITDA is defined as the profit/loss for the year/ period before depreciation, amortization, net financial income (expense), and income tax expense. – EBIT margin is defined as EBIT as a percentage of revenues. – EBITDA margin is defined as EBITDA as a percentage of revenues. – Simplified free cash flow is defined as adjusted EBITDA less cash CAPEX. Cash CAPEX used herein is cash flow used in purchase of property, plant and equipment, other intangible assets, and development expenditures. – Simplified free cash flow conversion is defined as simplified free cash flow divided by adjusted EBITDA. 266 Contents Adjusted EBITDA¹ USD million 2024 2023 Profit/loss for the period 136.6 -32.6 Income tax 39.5 -13.7 Net financial items 46.4 32.7 EBIT¹ 222.5 -13.6 Depreciation 15.8 10.6 Amortization of intangible assets 47.0 51.5 Impairment 1.1 - EBITDA¹ 286.4 48.5 Ocado litigation costs 0.4 252.6 Option costs -4.0 7.4 Total adjustments -3.6 260.0 Adjusted EBITDA¹ 282.8 308.5 Total revenue and other operating income 601.4 645.7 EBITDA margin¹ 47.6% 7.5% Adjusted EBITDA margin¹ 47.0% 47.8% About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Independent Auditor’s Report Independent Auditor’s Report on Sustainability Responsibility Statement Alternative Performance Measures Definitions Adjusted EBIT¹ USD million 2024 2023 EBIT¹ 222.5 -13.6 Ocado litigation costs 0.4 252.6 Option costs -4.0 7.4 PPA amortizations 30.9 40.2 Total adjustments 27.3 300.2 Adjusted EBIT¹ 249.8 286.5 Total revenue and other operating income 601.4 645.7 EBIT margin¹ 37.0% -2.1% Adjusted EBIT margin¹ 41.5% 44.4% 1 Reference is made to explanations on the APM definitions and explanations and details on the adjustments. 267 Contents Adjustments Ocado Group litigation These comprise costs incurred in connection with the About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Independent Auditor’s Report Independent Auditor’s Report on Sustainability Responsibility Statement Alternative Performance Measures Definitions Ocado Group litigation, i.e. costs linked to the company’s use of external legal counsel and costs related to settlement of all claims between the parties. Adjustments only cover the litigation with Ocado Group. The company has assessed the adjustment item to be outside the normal course of the company’s business, based on historical events. Option costs These comprise costs incurred in connection with the group’s stock option schemes. The expenses are due to vesting and change in social security tax as a consequence of the development in the value of the underlying shares. The company has deemed these costs to constitute a special item in terms of their nature and size. PPA amortizations These represent amortization of assets recognized as part of the purchase price allocation made when Thomas H. Lee Partners acquired the group from EQT in 2019. The company has deemed the transaction to constitute a special item, as it resulted from a change of ownership structure and hence no acquisitions were made by the company itself. No adjustments are made for PPA amortizations resulting from acquisitions through the company. 268 Contents Definitions About Shareholder Information Board of Directors Report Sustainability Statements Corporate Governance Report Financial Statements Appendices Independent Auditor’s Report Independent Auditor’s Report on Sustainability Responsibility Statement Alternative Performance Measures Definitions AI/ML Artificial Intelligence/Machine Learning APAC Asia-Pacific APM Alternative Performance Measures AS/RS Automated Storage & Retrieval Systems BDM Business Development Manager CAGR Compounded Annual Growth Rate CGUs Cash-Generating Units Company AutoStore Holdings Ltd. EMEA Europe, the Middle East and Africa. Also includes a minor share of Latin America eNPS Employee Net Promoter Score ESG Environmental, Social, and Governance ESMA European Securities and Markets Authority ESRS European Sustainability Reporting Standard GHG Greenhouse Gas GRI Global Reporting Initiative Group AutoStore Holdings Ltd. and subsidiaries HTP High-Throughput Warehouses IFRS International Financial Reporting Standards IP Intellectual Property IPO Initial Public Offering ISO International Organization for Standardization LCA Life Cycle Analysis M&A Mergers and Acquisitions MAR Market Abuse Regulation MFC Micro-Fulfillment Center MWh Mega-Watt-hours NAM North America NCGB Norwegian Corporate Governance Board Order backlog Order backlog is defined as the total value of order intake not yet shipped and for which revenue has not yet been recognized. Revenue derives from the order backlog over time or upon shipment, depending on the applicable revenue recognition model Order intake Order intake is defined as value of projects where a distribution partner has received a purchase order or verbal confirmation that a specific installation will be ordered. Order intake is calculated as follows: closing balance less opening balance of order backlog for the period plus revenue recognized in the period. The intention of this measure is to look through our distribution channel and provide insight into end market demand PPA Purchase Price Allocations – fair value adjustments resulting from business acquisitions where the fair value of the acquired company exceeds its carrying value R&D Research and Development RECs Renewable Energy Certificates ROI Return of Investment SKU Stock-Keeping Unit tCO2eq Metric tonnes of CO2-equivalents WMS Warehouse Management System Contact Information AutoStore AS Stokkastrandvegen 85, 5578 Nedre Vats, Norway T +47 52 76 35 00 www.autostoresystem.com © AutoStore 2025 ©2025 All Rights Reserved AutoStore Technology AS. AutoStore Technology AS and affiliated companies are the sole owner of the content of this document and related intellectual property, including, but not limited to design, patent, and trademarks. This report is designed in Workiva by Fasett. Photos: Haakon Nordvik.

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