Volati

Quarterly Report • Apr 28, 2025

Volati AB – Report January – December 2022 – 1 –

Interim Report January–March 2025

This interim report has been prepared in Swedish and translated into English. In the event of any discrepancies between the Swedish original and the translation, the Swedish shall have precedence.

Interim Report January–March 2025

Quarter January-March 2025

• Net sales increased by 15 percent to SEK 2,001 (1,747) million.
• EBITA increased by 48 percent to SEK 135 (91) million.
• Profit after tax increased by 44 percent to SEK 28 (19) million.
• Earnings per ordinary share increased by 450 percent to SEK 0.12 (0.02).
• On 4 February, the German label producer Clever Etiketten GmbH, with annual sales of SEK 290 million, was acquired, with its sister companies, as an add-on acquisition for Ettiketto Group.
• The credit facilities with Nordea and SEB were increased by SEK 750 million during the quarter, to a total of SEK 3,650 million.

Events after the reporting period

• On April 25, an agreement was signed to acquire the tools and machinery wholesaler Hans Eggestrand AB, with annual sales of SEK 45 million, for the Salix Group platform.

Summary of results and key figures

Jan-Mar	Jan-Mar		Full year
			2024
2,001	1,747	8,120	7,866
135	91	702	658
7	5	9	8
100	63	574	538
28	19	291	283
-136	18	624	779
2.9	2.6	2.9	2.6
0.12	0.02	2.73	2.63
17	18	17	16
	2025	2024	LTM

Net sales, LTM, SEK million

500 600 700 800

9 10 11

EBITA margin, LTM, %

1) See note 6 for definitions of alternative performance measures.

Positive trend continues in an uncertain market

The first quarter of the year showed sales growth of 15 percent to SEK 2,001 million. Improved margins contributed to EBITA increasing to SEK 135 million, corresponding to growth of 48 percent. It was pleasing to see five of our six platforms reporting increased profits compared with the previous year. The previous quarter's positive organic growth trend continued, with organic sales growth of 4 percent and organic EBITA growth of 33 percent. Market conditions have generally improved in the construction-related segments, but the market remains cautious and uncertain.

Net debt/adjusted EBITDA increased from 2.6x to 2.9x in Q1. This is within our target range of 2-3x and was expected, given seasonal variations and the acquisition of the German company Clever Etiketten. We entered the tougher market conditions of recent years with a low level of debt and deliberately chose to continue making acquisitions under the current market conditions, thereby increasing the level of debt. When the market normalises, the level of debt will gradually decline again. The coming quarters, particularly in the second half of the year, are strong from a cash flow perspective, which means we have the conditions to reduce net debt if necessary.

Salix Group on the right track

Salix Group is moving in the right direction, driven by a cautious market improvement. Q1 net sales increased to SEK 1,010 million. EBITA almost doubled compared with the same quarter the previous year and amounted to SEK 80 million, while the margin strengthened by almost three percentage points. The positive development is due to good organic sales growth, the effects of previously implemented structural measures and contributions from acquisitions. The gradual market recovery in Salix Group is expected to take time and is still characterised by uncertainty.

Ettiketto Group continues its positive development

Good organic growth and the Clever Etiketten acquisition contributed to Ettiketto Group's increased Q1 net sales. The strong organic growth contributed to an improved margin compared with Q1 in the previous year and EBITA increasing to SEK 55 million. Clever Etiketten accounts for 25 percent of Ettiketto Group's net sales but has significantly lower margins than other companies in the business area, resulting in an overall dilutive effect. As with previous acquisitions, we see good potential to gradually improve Clever Etiketten's margins. This is in line with our strategy of long-term value creation through add-on acquisitions, organic growth and operational improvements.

Better results for three out of Industry's four platforms

In a seasonally weaker quarter for the business area, net sales amounted to SEK 705 million and EBITA was SEK 22 million, which is SEK 2 million lower than in the same quarter the previous year. Having said that, all platforms within Industry, apart from Corroventa, delivered better earnings than in the previous year.

Corroventa was up against tough comparatives after a strong first quarter in 2024, while the effects of flooding were largely absent in the first quarter of this year. Tornum Group continues to face subdued demand in much of Europe but, despite this, was able to exceed the previous year's earnings – partly due to the agreement signed with Lantmännen in 2024.

S:t Eriks was affected by a similar market dynamic to the previous quarter, with a stable market for infrastructure but a weaker construction market. Communication also continues to perform well, although with lower deliveries to the US market at the end of the quarter, there is some uncertainty about the coming quarters.

The recent trade tariff turmoil has little direct impact on Volati, although we expect lower deliveries to the US market in the coming quarters for Communication. However, we recognise that it could have a general impact on the recovery of the economy, particularly for the construction-related segments and customers of Tornum Group.

The first quarter of the year is a step towards closing the growth gap that arose after challenging market conditions in recent years. With the acquisition of Clever Etiketten, and Salix Group's acquisition of Eggestrand after the end of the quarter, we have acquired over SEK 750 million in total annual sales over the last 12 months. We have also increased our existing credit facilities with Nordea and SEB, which now total SEK 3,650 million. At the end of 2024, SEK 2,200 million had been utilised, which provides scope to finance acquisitions of companies with total annual sales of over SEK 2 billion. This gives us favourable conditions for continued acquisitive growth.

Andreas Stenbäck, President and CEO

This is Volati

Volati is a Swedish industrial group with the vision to be Sweden's best owner of medium-sized companies. Through value-creating add-on acquisitions and long-term, sustainable company development, Volati has been delivering consistently strong profitable growth since the start in 2003. The Group consists of the business areas Salix Group, Ettiketto Group and Industry.

Financial targets

Volati's financial targets are designed to support continuing successful operations in accordance with our business model. The targets should be assessed on an overall basis.

EBITA growth

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The target is average annual growth in EBITA1) per ordinary share of at least 15 percent over a business cycle.

Return on adjusted equity

The long-term target is a return on adjusted equity1) of 20 percent.2)

Capital structure

The target is a net debt/adjusted EBITDA1) ratio of 2 to 3 times, not exceeding 3.5 times.

1) See note 6 for definitions of alternative performance measures

2) Includes discontinued operations

Consolidated financial trend

	Jan-Mar 2025	Jan-Mar 2024	LTM	Full year 2024
Net sales, SEK million	2,001	1,747	8,120	7,866
EBITA1), SEK million	135	91	702	658
EBIT, SEK million	100	63	574	538
Profit after tax, SEK million	28	19	291	283

1) See note 6 for definitions of alternative performance measures

+15%

Net sales

The Group's net sales for Q1 2025 amounted to SEK 2,001 (1,747) million, an increase of 15 percent compared with the same quarter the previous year. Organically, net sales increased by 4 percent during the quarter.

Earnings

EBITA for Q1 2025 increased by 48 percent to SEK 135 (91) million. Ettiketto Group and Salix Group reported improved earnings, while Industry's earnings declined compared with the same quarter in the previous year. Profit after tax for Q1 2025 increased by 44 percent to SEK 28 (19) million.

Cash flow

Operating cash flow (for definition and calculation, see pages 23-24) amounted to SEK -136 (18) million in Q1 2025. Compared with the same quarter in the previous year, operating cash flow was affected positively by improved earnings and negatively by increased capital tied up in inventories and trade receivables.

Cash flow from operating activities for Q1 (see page 16) amounted to SEK -178 (-20) million.

Investments in non-current assets during Q1 2025 amounted to SEK 27 (26) million and were primarily ongoing business investments in machinery, equipment and IT systems.

Dividends of SEK 16 (16) million were paid in Q1 2025.

EBITA Q1 2025

Net sales Q1 2025

SEK -136 million

Operating cash flow Q1, 2025

Seasonal variations

Volati's sales, earnings and cash flow are affected by seasonal variations. This means that Volati's operations, sales and earnings development should ideally be analysed on a rolling 12-month basis.

Historical breakdown of EBITA by quarter (continuing operations), five-year average, percent

Equity

The Group's equity amounted to SEK 2,167 million at the end of the period, compared with SEK 2,215 million at the end of the previous year. The change is mainly attributable to earnings for the period and translation differences in equity for foreign subsidiaries. The equity ratio was 28 percent on 31 March 2025, compared with 30 percent on 31 December 2024. The return on adjusted equity was 17 percent, compared with 16 percent at the end of 2024.

Capital structure trend

Net debt

2.9x Net debt/

adjusted EBITDA Q1 2025

The Group's net debt amounted to SEK 2,510 million on 31 March 2025, compared with 2,105 million on 31 December 2024. The change in net debt is mainly due to acquisitions, earnings for the period, preference share dividends and changes in working capital. Net debt/adjusted EBITDA was 2.9x at the end of the quarter, compared with 2.6x at the end of 2024. Total liabilities amounted to SEK 5,643 (5,236) million on 31 March 2025, of which interest-bearing liabilities, including pension obligations and leasing, amounted to SEK 3,158 (2,948) million.

Business acquisitions and divestments

Acquisitions are a core element of Volati's strategy for creating long-term value growth, and the Company continuously evaluates both complementary add-on acquisitions and acquisitions in new lines of business. It is Volati's assessment that there is a lower risk level for add-on acquisitions than for acquisitions in new lines of business, as in-depth industrial know-how and a recipient organisation are already in place in the acquiring company. Add-on acquisitions also enable synergies.

On 4 February 2025, Ettiketto Group acquired all shares in Clever Etiketten GmbH (including sister companies) – a leading supplier of label solutions in Germany. The add-on acquisition marked Ettiketto Group's entry into the German market and created a platform for future growth in Central Europe. At the same time, the acquisition enables synergies and continuing work on operational improvements Clever Etiketten reported annual sales of SEK 290 million in 2024.

Volati's business areas

Volati's net sales and earnings by business area

The diagrams relate to the full 12-month period 1 April 2024 to 31 March 2025. Acquired operations are included in the relevant business area from the acquisition closing date and their proportion is calculated net of central costs and items affecting comparability.

Salix Group

Salix Group offers products for building and industry, primarily hardware, consumables, material and packaging. The business area also offers a broad range of products for home and garden, and agriculture and forestry. The products consist of both own brands and external brands.

	Jan-Mar 2025	Jan-Mar 2024	LTM	Full year 2024
Net sales, SEK million	1,010	810	3,788	3,588
EBITA, SEK million1)	80	41	313	273
EBITA margin, %1)	8	5	8	8
ROCE excl. goodwill, %1)	27	23	27	24
ROCE incl. goodwill, %1)	14	12	14	12

1) See note 6 for definitions of alternative performance measures.

Salix Group developed positively during the quarter because of a cautious market improvement. Net sales for Q1 increased by 25 percent to SEK 1,010 million, mainly driven by acquisitions but also by organic growth. The EBITA margin increased by 3 percentage points to 8 percent compared with the same period the previous year. EBITA for Q1 almost doubled to SEK 80 million.

Salix Group has encountered lower market demand in recent years. To meet the challenge, Salix Group has worked on cost control, synergies within the Group and active market development. Salix Group experienced a

cautious market improvement in building materials retail during Q1 2025 and showed organic growth. Long-term demand for Salix Group's products is expected to be good, but in the near term, the market remains uncertain. With its disciplined work on efficiency improvements, customer communication, pricing and a focus on growth, Salix Group is well positioned for when the volumes return.

After the end of Q1, an agreement was signed to acquire the tools and machinery wholesaler Hans Eggestrand AB. The acquisition strengthens the business area's operations towards customers in the hardware, construction, industrial, and electrical wholesale sectors. The process of integrating and developing Timberman and Beslag Design AB is progressing according to plan. The acquisitions strengthen the business area's offerings in flooring solutions and the interior fittings market. The business area sees further acquisition opportunities in the majority of its operations.

Ettiketto Group

Ettiketto Group is a leading Nordic supplier of self-adhesive labels for a variety of applications including consumer goods, food and industry. The company also has a comprehensive range of labelling machines that are integrated into customers' production lines.

	Jan-Mar 2025	Jan-Mar 2024	LTM	Full year 2024
Net sales, SEK million	288	217	1,006	936
EBITA, SEK million1)	55	41	215	200
EBITA margin, %1)	19	19	21	21
ROCE excl. goodwill, %1)	73	68	73	78
ROCE incl. goodwill, %1)	40	34	40	41

1) See note 6 for definitions of alternative performance measures.

Ettiketto Group performed well in Q1 2025, increasing its net sales by 32 percent to SEK 288 million, driven by the acquisition of Clever Etiketten GmbH and organic growth. The EBITA margin compared with the previous year increased by 0.3 of a percentage point. EBITA for the quarter increased by 35 percent from SEK 41 million to SEK 55 million.

Net sales and the order intake in the Swedish operations were good during the quarter. During 2024 and Q1 2025, the organisation has worked actively to meet the growing demand by increasing its machines and the utilisation

rate of existing machines, which produced results during the quarter.

Ettiketto Group has had an EBITA margin of 21 percent over the last 12 months. Ettiketto Group strengthened its margin in Q1, despite the fact that Clever Etiketten, acquired during the quarter, has significantly lower margins than other parts of Ettiketto Group, which therefore has a margin-diluting effect. In previous acquisitions, Ettiketto Group has demonstrated a strong ability to systematically realize synergies and improve the operational efficiency of acquired companies, and we see good potential to gradually lift Clever Etiketten's margins, as with historical acquisitions. The acquisition of Clever Etiketten also opens up a new platform in Central Europe for continued acquisitions, enabling Ettiketto Group to use its proven ability to consolidate the market and improve the profitability of acquired companies. The prospects for continued acquisitive growth are considered good.

Industry

The Industry business area consists of four businesses with leading market positions in their own niches. The businesses are manufacturing suppliers of solutions in grain handling, moisture and water damage restoration, infrastructure for telecom and lighting, and stone and cement products for infrastructure, paving and roofing.

	Jan-Mar 2025	Jan-Mar 2024	LTM	Full year 2024
Net sales, SEK million	705	720	3,332	3,347
EBITA, SEK million1)	22	24	238	240
EBITA margin, %1)	3	3	7	7
ROCE excl. goodwill, %1)	20	28	20	20
ROCE incl. goodwill, %1)	13	18	13	13

1) See note 6 for definitions of alternative performance measures.

The business area's net sales declined by 2 percent in Q1, which is its seasonally weakest quarter. The EBITA margin was in line with the corresponding quarter in the previous year. Several businesses encountered a market situation in the quarter that was weaker than normal, and they are working actively on price discipline, productivity improvements, cost control and customer communication to manage the market conditions.

The Communication platform continued to perform well, despite lower deliveries to the US market at the end of the quarter. The Corroventa platform was up against tough comparative figures from the previous year and

there were no significant effects of flooding during Q1 2025. The Tornum Group platform continued to face a challenging market in much of Europe during the quarter, but exceeded the previous year's earnings, partly due to the effects of the agreement signed with Lantmännen in 2024. The S:t Eriks platform continues to face a cautious construction market, while products for the infrastructure segment are experiencing more stable demand.

The business area sees acquisition opportunities in the majority of its operations.

Head office

Head office comprises the central costs in the Parent Company Volati AB and associated operations. Head office costs for Q1 amounted to SEK 13 (11) million.

Other information

Share capital

Volati has two classes of shares: ordinary shares and preference shares. The shares are listed on Nasdaq Stockholm under the tickers VOLO and VOLO PREF. The number of shareholders at the end of Q1 2025 was 11,512.

The number of ordinary shares on 31 March 2025 was 79,406,571 and the number of preference shares was 1,603,774. Share capital amounted to SEK 10 million on the same date.

Nomination Committee

Volati's Nomination Committee has submitted its proposals to the Company's Annual General Meeting. The Nomination Committee recommends the re-election of Karl Perlhagen, Patrik Wahlén, Björn Garat, Christina Tillman, Anna-Karin Celsing, Magnus Sundström and Maria Edsman to the Board. The Committee also proposes the re-election of Patrik Wahlén as Chairman of the Board and the reelection of KPMG AB as auditor. The Committee's full proposals can be found on Volati's website.

2025 Annual General Meeting

Volati AB's Annual General Meeting will be held on Monday 28 April 2025 at 17.00 at GT30, Grev Turegatan 30, 114 38, Stockholm. Shareholders may participate in person or through a proxy. Meetingrelated documents with information on the Board's proposal were published on the Company's website www.volati.se on 20 March 2025.

The 2024 annual report for Volati AB (publ) was published on Volati's website on 26 March 2025 and was sent out on request.

Related-party transactions

There were no related-party transactions during the period.

Events after the end of the reporting period

On April 25, an agreement was signed to acquire the tools and machinery wholesaler Hans Eggestrand AB, with annual sales of SEK 45 million, for the Salix Group platform.

Financial calendar

2025 Annual General Meeting	28 April 2025
Interim Report, January-June 2025	14 July 2025
Interim Report, January-September 2025	24 October 2025
2025 Year-end Report	12 February 2026

Declaration by the Board

The Board of Directors and the CEO hereby certify that this interim report provides a fair overview of the Parent Company's and the Group's operations, financial position and performance and describes material risks and uncertainties faced by the Parent Company and Group companies.

Volati AB (publ)

The Board of Directors and CEO Stockholm, 28 April 2025

Patrik Wahlén		Karl Perlhagen
Chairman of the Board		Board Member
Björn Garat		Christina Tillman
Board Member		Board Member
	Maria Edsman
	Board Member
Anna-Karin Celsing		Magnus Sundström
Board Member		Board Member
	Andreas Stenbäck
	CEO

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

This information is information that Volati AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons below, at 7.45 a.m. CEST on 28 April 2025.

Conference call

CEO Andreas Stenbäck and CFO Martin Aronsson will present the interim report in a conference call on 28 April at 9.00 a.m. The presentation will be conducted in English.

For a webcast of the conference call (opportunity for written questions), go to: https://www.finwire.tv/webcast/volati/q1-2025/

The conference call (opportunity for oral questions) can be accessed at: Phone number +46 8 5050 0829, Meeting ID 868 1336 8383, followed by #, *9 to ask a question.

For more information, please contact:

Andreas Stenbäck, CEO Volati AB, 070-889 09 60, andreas.stenback@volati.se Martin Aronsson, CFO Volati AB, +46 70 741 20 12 martin.aronsson@volati.se

Volati AB (publ)

Corporate reg. no. 556555–4317 Engelbrektsplan 1, SE-114 34 Stockholm Tel: +46 8-21 68 40 www.volati.se

Financial Statements

Condensed consolidated income statement

SEK million	Jan-Mar 2025	Jan-Mar 2024	LTM	Full year 2024
Operating income
Net sales	2,001	1,747	8,120	7,866
Operating expenses
Raw materials and supplies	-1,191	-1,051	-4,908	-4,767
Other external costs	-167	-139	-583	-555
Personnel expenses	-438	-400	-1,661	-1,623
Other operating income and expenses	4	6	18	20
EBITDA	208	162	987	941
Depreciation	-73	-71	-285	-283
EBITA	135	91	702	658
Acquisition-related amortisation	-35	-28	-128	-120
EBIT	100	63	574	538
Finance income and costs
Finance income and costs	-60	-40	-190	-169
Profit before tax	39	24	384	369
Tax	-11	-4	-93	-86
Net profit	28	19	291	283
Attributable to:
Owners of the Parent	26	18	281	273
Non-controlling interests	2	1	10	10
Earnings per ordinary share
Basic and diluted earnings per ordinary share, SEK	0.12	0.02	2.73	2.63
No. of ordinary shares	79,406,571	79,406,571	79,406,571	79,406,571
Average no. of ordinary shares	79,406,571	79,406,571	79,406,571	79,406,571
Average no. of ordinary shares after dilution	79,406,571	79,406,571	79,406,571	79,406,571
No. of preference shares	1,603,774	1,603,774	1,603,774	1,603,774
Preference share dividend, SEK	10.00	10.00	40.00	40.00

Consolidated statement of comprehensive income

SEK million	Jan-Mar 2025	Jan-Mar 2024	LTM	Full year 2024
Net profit	28	19	291	283
Items that may be reclassified subsequently to profit or loss
Translation differences for the period	-52	17	-66	4
Total	-52	17	-66	4
Total comprehensive income for the period	-25	37	225	286
Owners of the Parent	-27	35	215	276
Non-controlling interests	2	1	10	10

SEK million	31 Mar 2025	31 Mar 2024	31 Dec 2024
ASSETS
Non-current assets
Intangible assets	3,141	2,988	3,189
Property, plant and equipment	526	416	432
Right-of-use assets	577	647	574
Financial assets	6	6	6
Deferred tax assets	53	42	45
Total non-current assets	4,302	4,100	4,246
Current assets
Inventories	1,682	1,554	1,561
Trade receivables	1,306	1,125	992
Other current receivables	388	395	333
Financial receivables	-	35	-
Cash and cash equivalents	131	117	317
Total current assets	3,508	3,227	3,204
Total assets	7,810	7,326	7,451
EQUITY AND LIABILITIES
Equity
Equity attributable to owners of the Parent	2,157	2,217	2,205
Non-controlling interests	10	9	10
Total equity	2,167	2,226	2,215
Liabilities
Non-current interest-bearing liabilities	2,477	2,164	2,354
Non-current lease liabilities	400	472	402
Other non-current liabilities and provisions	338	259	268
Deferred tax	446	408	448
Total non-current liabilities	3,661	3,303	3,473
Current interest-bearing liabilities	91	65	7
Current lease liabilities	189	187	185
Trade payables	866	726	747
Other current liabilities	835	818	825
Total current liabilities	1,982	1,797	1,763
Total liabilities	5,643	5,101	5,236
Total equity and liabilities	7,810	7,326	7,451

Condensed consolidated statement of financial position

Condensed consolidated cash flow statement

	Jan-Mar	Jan-Mar		Full year
SEK million	2025	2024	LTM	2024
Operating activities
Profit before tax	39	24	384	369
Adjustment for other non-cash items	171	131	588	548
Interest paid and received, excl. interest on lease liabilities	-30	-27	-122	-119
Interest paid on lease liabilities	-9	-9	-34	-35
Income tax paid	-78	-68	-137	-127
Cash flow from operating activities	93	51	678	636
before changes in working capital
Cash flow from changes in working capital
Change in inventories	-112	-52	-72	-12
Change in operating receivables	-315	-144	-80	91
Change in operating liabilities	156	125	96	65
Cash flow from changes in working capital	-270	-71	-56	144
Cash flow from operating activities	-178	-20	623	780
Investing activities
Net investments in property, plant & equipment and intangible assets	-26	-25	-109	-107
Acquisitions and disposals of operations and subsidiaries	-84	-343	-374	-633
Net investments in financial assets	0	-9	9	-
Cash flow from investing activities	-110	-376	-474	-741
Financing activities
Dividend on preference shares	-16	-16	-64	-64
Dividend on ordinary shares	-	-	-158	-158
New borrowings and repayment of borrowings, excl. leases	181	477	315	611
Repayment of lease liabilities	-49	-49	-194	-194
Other financing activities	-	-	-16	-16
Cash flow from financing activities	116	412	-113	183
Cash flow for the period	-172	15	35	222
Cash & cash equivalents at beginning of period	317	96	117	96
Exchange differences	-14	6	-20	0
Cash & cash equivalents at end of period	131	117	131	317

Consolidated statement of changes in equity

SEK million	Parent Company's shareholders	Non controlling interests	Total equity
Closing balance, 31 Dec 2023	2,197	9	2,206
Net profit	18	1	19
Other comprehensive income	17	0	17
Comprehensive income for the period	35	1	37
Revaluation of liability for put option issued to non-controlling interest	-16	-1	-17
Closing balance, 31 Mar 2024	2,217	9	2,226

SEK million	Owners of the Parent	Non controlling interests	Total equity
Closing balance, 31 Dec 2024	2,205	10	2,215
Net profit	26	2	28
Other comprehensive income	-52	0	-52
Comprehensive income for the period	-27	2	-25
Revaluation of liability for put option issued to non-controlling interest	-21	-2	-23
Closing balance, 31 Mar 2025	2,157	10	2,167

Key figures1)

	Jan-Mar 2025	Jan-Mar 2024	LTM	Full year 2024
Net sales, SEK million	2,001	1,747	8,120	7,866
Net sales growth, %	15	-8	6	1
Organic net sales growth, %	4	-15	-2	-7
EBITDA, SEK million	208	162	987	941
EBITA, SEK million	135	91	702	658
EBITA margin, %	7	5	9	8
EBITA growth, %	48	-43	5	-11
Organic EBITA growth, %	33	-50	-7	-21
EBITA growth per ordinary share, %	48	-43	5	-11
EBIT, SEK million	100	63	574	538
Profit after tax, SEK million	28	19	291	283
Basic and diluted earnings per ordinary share, SEK2)	0.12	0.02	2.73	2.63
Return on equity, %	13	14	13	13
Return on adjusted equity, %	17	18	17	16
Equity ratio, %	28	30	28	30
Cash conversion, LTM, %	79	96	79	104
Operating cash flow, SEK million	-136	18	624	779
Net debt/EBITDA, x	2.9	2.6	2.9	2.6
Number of full-time equivalents	2,280	2,099	2,280	2,120
Ordinary shares outstanding	79,406,571	79,406,571	79,406,571	79,406,571
Average no. of ordinary shares outstanding	79,406,571	79,406,571	79,406,571	79,406,571
Preference shares outstanding	1,603,774	1,603,774	1,603,774	1,603,774

1) All performance measures, apart from net sales, EBIT, profit after tax and earnings per share, are non-IFRS performance measures – see also note 6 Alternative performance measures.

2) When calculating earnings per ordinary share, the preference share dividend of SEK 16 million per quarter is deducted for the period.

Notes to consolidated financial statements

Note 1 Accounting policies

The Group applies International Financial Reporting Standards (IFRS) as adopted by the EU. This interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and RFR 1 Supplementary Accounting Rules for Groups. The report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities. The accounting policies are consistent with those applied by the Group in the 2024 annual report.

During Q3 2024, there was a change to the presentation of the discount effect for additional consideration, which has been transferred from Other operating income and expenses to Finance income and costs. For the period January-March 2025, the amount was SEK 1 (1) million. The comparative periods for 2023 have been restated.

Some figures in this report have been rounded, which means that certain tables do not always add up exactly. This applies where figures are stated in thousands, millions or billions. Pages 1-12 of this report are an integral part of the interim report.

Note 2 Risks and uncertainties

The current war between Russia and Ukraine affects us all, but above all it is a humanitarian disaster for the Ukrainian people. Volati's direct economic exposure to Russia and Ukraine is relatively limited, but the war has also caused turbulence in world markets, and inflation and interest rates have risen since the war began, affecting the cost of the Group's purchases and increasing net interest. In recent months, global trade has also been affected by the imposition of certain trade tariffs, and there is still uncertainty regarding the outcome of trade agreement negotiations. Volati is closely monitoring developments in Europe and the world market.

It is the assessment that the Group's other material risks and uncertainties are unchanged from those described in detail in the 2024 Annual Report.

Note 3 Segment reporting

At the end of Q4, Volati consisted of the three business areas Salix Group, Ettiketto Group and Industry. Segment reporting follows the principles set out in the 2024 Annual Report.

Net sales, SEK million	Jan-Mar 2025	Jan-Mar 2024	LTM	Full year 2024
Salix Group	1,010	810	3,788	3,588
Ettiketto Group	288	217	1,006	936
Industry	705	720	3,332	3,347
Internal eliminations	-2	-1	-5	-5
Total net sales	2,001	1,747	8,120	7,866

Sales between segments are immaterial.

Distribution of net sales, Jan- Mar 2025, SEK millions	Sale of goods	Services	Other	Total revenue from contracts with customer s	Equipme nt leasing	Other	Total
Salix Group	1,000	3	5	1,008	-	1	1,009
Ettiketto Group	285	3	0	287	-	-	287
Industry	574	117	1	692	12	1	705
Total	1,859	122	6	1,987	12	1	2,001

Distribution of net sales, Jan- Mar 2024, SEK millions	Sale of goods	Services	Other	Total revenue from contracts with customer s	Equipme nt leasing	Other	Total
Salix Group	809	-	-	809	-	1	810
Ettiketto Group	214	3	-	217	-	-	217
Industry	600	101	1	702	17	2	720
Total	1,623	104	1	1,728	17	2	1,747

EBITA, SEK million	Jan-Mar 2025	Jan-Mar 2024	LTM	Full year 2024
Salix Group	80	41	313	273
Ettiketto Group	55	41	215	200
Industry	22	24	238	240
Items affecting comparability1)	-8	-3	-9	-3
Central costs	-13	-11	-55	-53
Total EBITA	135	91	702	658
Acquisition-related amortisation	-35	-28	-128	-120
Net financial items	-60	-40	-190	-169
Profit before tax	39	24	384	369

1) See note 6 for definition and specification.

Note 4 Business acquisitions

On 4 February, all shares in Clever Etiketten GmbH (including sister companies) were acquired – a leading supplier of label solutions in Germany. This is an add-on acquisition for Ettiketto Group. Clever Etiketten reported annual sales of approximately SEK 290 million in 2024.

The Group's earnings were affected by transaction costs of SEK 8 million for the above acquisition. Goodwill of SEK 23 million arising from the transaction is supported by several factors, largely attributable to the acquired company's synergies, employees and market shares.

The impact of the acquisition on the Volati Group's balance sheet on the acquisition date is set out below.

Intangible assets Property, plant and equipment Deferred tax assets Inventories Trade receivables Other receivables Cash and cash equivalents Deferred tax liability and other provisions Non-current interest-bearing liabilities Current interest-bearing liabilities Current liabilities Net assets Goodwill Purchase price for shares Purchase price for shares Plus liabilities repaid at the time of acquisition Less deferred fixed consideration Less cash & cash equivalents in acquired companies at the acquisition date	Impact of acquisitions on balance sheet (SEK million)	Total
		0
		103
		8
		30
		27
		15
		2
		-11
		-26
		-40
		-35
		73
		23
		96
		-96
		-38
		46
		2
	Acquisition-date impact of acquisitions on the Group's cash & cash equivalents	-86

	Net sales	EBITDA	EBITA	EBIT
Impact of acquisitions on income statement (SEK million)	Jan-Mar 2025	Jan-Mar 2025	Jan-Mar 2025	Jan-Mar 2025
Salix Group	-	-	-	-
Ettiketto Group	49	2	1	0
Industry	-	-	-	-
Volati Group	49	2	1	0

If the acquisition had been consolidated with effect from 1 January 2025, the contribution to the Group's income statement, excluding transaction costs, for the period 1 January to 31 March would have been as follows: sales SEK 73 million, EBITDA SEK 0 million, EBITA SEK -2 million and operating profit SEK -2 million.

Note 5 Financial Instruments

The fair values of the Group's financial assets and liabilities are not materially different from their carrying amounts.

Financial instruments measured at fair value

	31 Mar 2025			31 Dec 2024
SEK million	Carrying amounts	Quoted prices Level 1	Observable inputs Level 2	Unobservabl e inputs Level 3	Carrying amounts	Quoted prices Level 1	Observable inputs Level 2	Unobservabl e inputs Level 3
Financial assets
Other shares and interests	2	-	-	2	2	-	-	2
Derivatives	-	-	-	-	0	0	-	-
Financial liabilities
Derivatives	1	1	-	-	-	-	-	-
Liability for put option issued to non-controlling interest	239	-	-	239	216	-	-	216
Additional consideration 1)	46	-	-	46	46	-	-	46

1) Additional consideration is often contingent on the financial performance of the acquired business over a specific period and is measured on the basis of management's best estimate.

Specification of financial instruments Level 3:

	Financial assets		Financial liabilities
	Other shares and interests	Liability for put option issued to non-controlling	interest Contingent consideration
Balance, 31 Dec 2023	2	-174	-58
Additions through acquisitions	-	-	-10
Cash settled	-	16	23
Change in value recognised in OCI	-	-	-6
Change in value recognised in equity	-	-58	-
Other changes	-	-	5
Balance, 31 Mar 2024	2	-216	-46
Balance, 31 Dec 2024	2	-216	-46
Change in value recognised in equity	-	-23	-
Change in value recognised in OCI	-	-	0
Balance, 31 Mar 2025	2	-239	-46

Note 6 Alternative performance measures

The financial reports published by Volati include alternative performance measures (APMs), which supplement the metrics defined or specified in the applicable rules for financial reporting, such as revenue, profit or loss and earnings per share. APMs are specified when they, in their context, provide clearer or more in-depth data than those metrics defined in the applicable rules for financial reporting. The basis for APMs is that they are used by management to assess financial performance and can thus be considered to give analysts and other stakeholders valuable information.

Volati regularly uses APMs as a complement to the key metrics defined in IFRS. The APMs derive from Volati's consolidated accounts and do not comprise measures of financial performance or liquidity in accordance with IFRS and, accordingly, should not be considered as alternatives to net income, operating profit or other key metrics that are derived pursuant to IFRS or as an alternative to cash flow as a measure of consolidated liquidity.

The following table sets out definitions for Volati's key figures. The calculation of APMs is presented separately below.

Non-IFRS APMs and key metrics	Description	Reason for use
EBITDA	Earnings before interest, taxes, depreciation and amortisation.	EBITDA is used together with EBITA to clarify earnings before the effects of depreciation and impairment, and before amortisation of acquisition-related intangible assets, in order to provide a view of the profit generated by operating activities.
Items affecting comparability	These include transaction-related costs, restructuring costs, contingent consideration remeasurement, capital gains/losses on the sale of operations and non-current assets, and other items that affect comparability over time.	Items affecting comparability represent income and expenses that are not attributable to the underlying performance of the business.
Adjusted EBITDA	Calculated as EBITDA, adjusted by adding back to earnings, as a minus item, interest expenses and depreciation attributable to operating leases for the last twelve months, as of the current reporting date, for the companies included in the Group on the reporting date, as if they had been owned for the last 12 months, adjusted for items affecting comparability.	Adjusted EBITDA provides management and investors with a view of the size of the operations included in the Group at the reporting date, as it does not include items not directly attributable to day-to-day operations. Also used in our covenant calculations for the bank.
EBITA	Earnings before interest, taxes and amortisation.	Together with EBITDA, EBITA provides a view of the profit generated by operating activities.
EBITA excl. items affecting comparability	Calculated as EBITA, adjusted for items affecting comparability.	Used by management to monitor the underlying earnings growth for the Group.
EBITA growth per ordinary share	Calculated as EBITA divided by the number of ordinary shares outstanding at the end of the period compared with the same period the previous year.	Used to illustrate earnings per ordinary share generated by operating activities.
Organic net sales growth	Calculated as net sales for the period, adjusted for acquired and divested net sales and currency effects, compared with net sales for the same period the previous year as if the units had been owned for the same length of time in the comparative period as the length of time they have been legally consolidated in the current period.	This metric is used by management to monitor the underlying net sales growth in existing operations.
Organic EBITA growth	Calculated as EBITA excluding items affecting comparability for the period, adjusted for total acquired and divested EBITA and currency effects, compared with EBITA excluding items affecting comparability for the same period the previous year, as if the units had been owned for the same length of time in the comparative period as the length of time they have been legally consolidated in the current period.	Used by management to monitor the underlying earnings growth for existing operations.
Return on equity	Net profit (including share attributable to non-controlling interests) divided by average equity for the last four quarters (including share attributable to non-controlling interests).	Shows the return generated on the total capital invested in the Company by shareholders.
Return on adjusted equity	Net profit (including share attributable to non-controlling interests) less preference share dividend divided by average equity for the last four quarters (including share attributable to non-controlling interests) less preference share capital.	Shows the underlying return generated on ordinary share capital invested in the Company by owners of ordinary shares.
Equity ratio	Equity (including share attributable to non-controlling interests) as a percentage of total assets.	The metric can be used to assess financial risk.
Cash conversion	Calculated as operating cash flow for the last twelve months divided by EBITDA, adjusted by adding back to earnings, as a minus item, interest expenses and depreciation attributable to operating leases for the last twelve months as of the current reporting date.	Cash conversion is used by management to monitor how efficiently the Company manages working capital and ongoing investments.

Non-IFRS APMs and key metrics	Description	Reason for use
Operating cash flow	Calculated as EBITDA, adjusted by adding back to earnings, as a minus item, interest expenses and depreciation attributable to operating leases, adjusted for non-cash items less the net of investments in and disposals of property, plant and equipment and intangible assets, and adjusted for cash flow from changes in working capital including prepaid operating lease expenses.	Operating cash flow is used by management to monitor cash flow generated by operating activities.
Net debt/Adjusted EBITDA	Calculated as the sum of interest-bearing loans, finance lease liabilities, provisions for pensions and liabilities attributable to unrealised losses on valuations of outstanding derivatives less cash and cash equivalents, endowment insurance assets and assets attributable to unrealised gains on valuations of outstanding derivatives in relation to adjusted EBITDA for the period.	The metric can be used to assess financial risk.
Return on capital employed (ROCE excl. goodwill)	EBITA excluding items affecting comparability for the last 12 months divided by average capital employed for the last 12 months.	Shows the return on capital employed generated by each business area and the Group without taking into consideration acquisition-related intangible assets with indefinite useful lives.
Return on capital employed including goodwill (ROCE incl. goodwill)	EBITA excluding items affecting comparability for the last 12 months divided by average capital employed including goodwill and other intangible assets with indefinite useful lives for the last 12 months.	Shows the return on capital employed generated by each business area and the Group.

Calculations of alternative performance measures are presented separately below.

	Jan-Mar 2025	Jan-Mar 2024	LTM	Full year 2024
Items affecting comparability, SEK millions
Transaction costs	-8	-2	-12	-7
Restructuring costs	-2	-	-2	-
Contingent consideration remeasurement	1	-1	0	-2
Capital gains/losses on sale of operations and non-current assets	-	0	0	0
Impairment of assets in Ukraine and Russia	-	-	-	-
Other items affecting comparability	-	-	6	6
Items affecting comparability	-8	-3	-9	-3
Adjusted EBITDA, LTM, SEK million
EBITDA, LTM	987	941	987	941
Reversal of IFRS 16 effect	-192	-183	-192	-190
Acquired companies	51	54	51	70
Reversal of items affecting comparability	9	25	9	3
Adjusted EBITDA	854	837	854	824
Calculation of organic net sales growth, %

Organic net sales growth, %	4	-15	-2	-7
Comparative figure for previous year	1,820	1,599	7,466	7,270
Currency effects	6	5	-	21
Total acquired/divested net sales	-187	-152	-655	-617
Net sales	2,001	1,747	8,120	7,866

Calculation of organic EBITA growth, %

EBITA	135	91	702	658
Adjustment for items affecting comparability	8	3	9	3
EBITA excl. items affecting comparability	143	94	710	661
Total acquired/divested EBITA	-18	-13	-69	-60
Currency effects	0	0	-	0
Comparative figure for previous year	125	81	641	601
Organic EBITA growth, %	33	-50	-7	-21

	Jan-Mar 2025	Jan-Mar 2024	LTM	Full year 2024
Calculation of EBITA growth per ordinary share, %
EBITA	135	91	702	658
No. of ordinary shares outstanding at end of period	79,406,571	79,406,571	79,406,571	79,406,571
EBITA per ordinary share, SEK	1.70	1.15	8.84	8.29
EBITA per ordinary share for same period
in previous year	1.15	2.02	8.41	9.28
EBITA growth per ordinary share, %	48	-43	5	-11
Basic and diluted earnings per ordinary share
Net profit attributable to owners of the Parent	26	18	281	273
Deduction for preference share dividend	16	16	64	64
Net profit attributable to owners of the Parent, adjusted for preference share dividend	10	2	216	209
Average no. of ordinary shares	79,406,571	79,406,571	79,406,571	79,406,571
Earnings per ordinary share, SEK	0.12	0.02	2.73	2.63
Calculation of return on equity
(A) Net profit, LTM, including non-controlling interests	291	313	291	283
Adjustment for preference share dividends, including dividends accrued but not yet paid	-64	-64	-64	-64
(B) Net profit, adjusted	227	249	227	218
(C) Average total equity	2,172	2,194	2,172	2,186
(D) Average adjusted equity	1,344	1,366	1,344	1,358
(A/C) Return on total equity, %	13	14	13	13
(B/D) Return on adjusted equity, %	17	18	17	16
Calculation of equity ratio, %
Equity including non-controlling interests	2,167	2,226	2,167	2,215
Total assets	7,810	7,326	7,810	7,451
Equity ratio, %	28	30	28	30
Calculation of operating cash flow and cash conversion, %
EBITDA	208	162	987	941
Reversal of IFRS 16 effect	-49	-47	-192	-190
(A) EBITDA excl. IFRS 16 effect	159	115	795	751
(B) adjustment for non-cash items	0	1	-7	-7
Change in working capital	-270	-73	-55	142
Net investments in property, plant	-26	-25	-109	-107
& equipment and intangible assets
(C) Operating cash flow (C/A) Cash conversion, %	-136 -86	18 16	624 79	779 104
Calculation of Net debt/adjusted EBITDA, LTM, x
Net debt
Cash & cash equivalents and other interest-bearing assets	-136	-121	-136	-322
Non-current interest-bearing loans and provisions for pensions	2,477	2,163	2,477	2,354
- reversal of capitalised borrowing costs	8	8	8	7
Non-current finance lease liabilities	45	43	45	35
Current interest-bearing loans	92	65	92	7
Current finance lease liabilities	25	26	25	24
Net debt	2,510	2,183	2,510	2,105
Adjusted EBITDA	854	837	854	824
Net debt/adjusted EBITDA, x	2.9	2.6	2.9	2.6

ROCE %, 31 March 2025	Salix Group	Ettiketto Group	Industry	Central costs	Volati Group
1) EBITA, LTM	313	215	238	-55	710
Capital employed, 31 March 2025
Intangible assets	1,658	380	1,119		3,141
Adjustment for goodwill, patent/technology, brands	-1,644	-373	-1,077		-3,078
Property, plant and equipment	38	202	285		526
Right-of-use assets	236	80	249		577
Operating receivables	1,611	344	1,269		3,225
Operating liabilities	-700	-193	-683		-1,585
Capital employed, 31 March 2025	1,199	440	1,162		2,806
Adjustment for average capital employed, LTM	-59	-148	21		-190
2) Average capital employed, LTM	1,140	292	1,183		2,616
ROCE excl. goodwill 1)/2), %	27	73	20		27
3) Average capital employed, LTM, incl. goodwill and other intangible assets with indefinite useful lives	2,271	536	1,856		4,621
ROCE incl. goodwill 1)/3), %	14	40	13		15

		Ettiketto		Central	Volati
ROCE %, 31 December 2024	Salix Group	Group	Industry	costs	Group
1) EBITA, LTM	273	200	240	-53	661
Capital employed, 31 December 2024
Intangible assets	1,694	364	1,148		3,189
Adjustment for goodwill, patent/technology, brands	-1,682	-357	-1,105		-3,127
Property, plant and equipment	42	96	294		432
Right-of-use assets	248	57	266		574
Operating receivables	1,396	243	1,142		2,784
Operating liabilities	-649	-139	-626		-1,422
Capital employed, 31 December 2024	1,050	264	1,119		2,429
Adjustment for average capital employed, LTM	77	-8	82		140
2) Average capital employed, LTM	1,126	256	1,200		2,569
ROCE excl. goodwill 1)/2), %	24	78	20		26
3) Average capital employed, LTM, incl. goodwill and other intangible assets with indefinite useful lives	2,242	494	1,877		4,512
ROCE incl. goodwill 1)/3), %	12	41	13		15

Parent Company Volati AB (publ)

The Parent Company Volati AB acts as a holding company and the members of Volati's management are employed within the Parent Company.

Parent Company condensed income statement

SEK million	Jan-Mar 2025	Jan-Mar 2024	LTM	Full year 2024
Net sales	5	4	18	17
Operating expenses	-16	-11	-58	-53
Operating profit	-11	-7	-40	-36
Profit/loss from financial investments	26	19	1,369	1,362
Profit after financial items	15	11	1,329	1,326
Appropriations	-	-	36	36
Tax for the period	-3	-2	-1	0
Net profit	12	9	1,364	1,361

Parent Company comprehensive income for the period
Comprehensive income for the period	12	9	1,364	1,361

Parent Company condensed statement of financial position

SEK million	31 Mar 2025	31 Mar 2024	31 Dec 2024
Non-current assets	1,768	1,703	1,768
Current assets	4,976	3,460	5,181
Total assets	6,744	5,163	6,949
Equity	3,573	2,423	3,561
Untaxed reserves	0	0	0
Pension obligations	4	4	4
Non-current liabilities	2,458	2,154	2,359
Current liabilities	709	583	1,025
Total equity and liabilities	6,744	5,163	6,949

Quarterly overview
SEK million	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
Operating income
Net sales	2,001	2,007	1,917	2,195	1,747	1,808	1,847	2,251	1,890
Operating expenses
Raw materials and supplies	-1,191	-1,201	-1,189	-1,327	-1,051	-1,077	-1,151	-1,410	-1,152
Other external costs	-167	-164	-121	-131	-139	-124	-99	-131	-134
Personnel expenses	-438	-435	-359	-429	-400	-410	-338	-398	-375
Other operating income and expenses	4	-2	8	8	6	6	0	5	-5
EBITDA	208	207	256	316	162	203	259	317	225
Depreciation	-73	-71	-70	-71	-71	-69	-67	-66	-64
EBITA	135	136	186	245	91	135	192	251	160
Acquisition-related amortisation	-35	-32	-30	-30	-28	-25	-24	-24	-24
EBIT	100	103	156	215	63	110	167	226	136
Finance income and costs
Finance income and costs	-60	-35	-48	-46	-40	-44	-40	-31	-43
Profit before tax	39	69	108	169	24	65	128	196	94
Tax	-11	-21	-24	-37	-4	-26	-26	-42	-20
Net profit	28	48	83	132	19	39	101	153	74
Attributable to:
Owners of the Parent	26	46	80	129	18	38	98	149	71
Non-controlling interests	2	2	4	3	1	1	4	4	3

Net sales, SEK million	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
Salix Group	1,010	892	868	1018	810	759	826	962	855
Ettiketto Group	288	252	233	233	217	216	203	219	221
Industry	705	864	817	946	720	834	819	1,072	816
Internal eliminations	-2	-1	-1	-2	-1	-1	-1	-2	-2
Total net sales	2,001	2,007	1,917	2,195	1,747	1,808	1,847	2,251	1,890
EBITA, SEK million
Salix Group	80	50	83	100	41	45	79	92	53
Ettiketto Group	55	51	59	50	41	39	43	38	38
Industry	22	59	50	107	24	81	91	132	81
Items affecting comparability	-8	-8	8	0	-3	-17	-8	2	0
Central costs	-13	-16	-13	-13	-11	-14	-13	-14	-12
Total EBITA	135	136	186	245	91	135	192	251	160
EBITA margin, %
Salix Group	8	6	10	10	5	6	10	10	6
Ettiketto Group	19	20	25	21	19	18	21	17	17
Industry	3	7	6	11	3	10	11	12	10
Volati Group	7	7	10	11	5	7	10	11	8