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Nilfisk Holding

Annual Report • Feb 20, 2025

3408_10-k_2025-02-20_ca371f76-bc3d-4681-9db0-e37c59fb0eda.pdf

Annual Report

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Annual Report 2024

Delivering on sustainable product innovation

Management Report Financial Report

2024 in brief

Our strategy

Our business

Our financial results

Our governance

MR Management Review SS Sustainability Statements FS Financial Statements

General information

Environment

Social

Governance

G1 Business conduct

Additional information

Consolidated financial statements

Parent financial statements

Statements & reports

About the report

We are pleased to present Nilfisk's Annual Report 2024, which is our first integrated report prepared in accordance with IFRS Accounting Standards and the Corporate Sustainability Reporting Directive (CSRD). Our commitment to transparency and accountability is reflected in our adherence to these recognized standards, ensuring that our financial reporting and sustainability disclosures provide a comprehensive and accurate representation of our performance.

Our Annual Report 2024 consists of the following sections:

  • Management Review
  • Sustainability Statements
  • Financial Statements

We invite you to explore this report to gain insights into our strategic priorities, performance, and future outlook.

Incorporation by reference

Nilfisk has applied the ESRS principle of 'incorporation by reference' in the Management Review and Financial Statements to enhance readability. These references are clearly marked with a . Read more about incorporation by reference in the Sustainability Statements.

Other available reports

In our Remuneration Report you will find a transparent and comprehensive overview of the remuneration of our Executive Management Board, Nilfisk Leadership team, and Board of Directors.

Our Corporate Governance Report is Nilfisk's annual statement of compliance with the Recommendations for Corporate Governance as a company admitted to trading on a regulated market.

You will find more information about Nilfisk and available reports on Nilfisk.com.

Management Review

2024 in brief
5
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15 Our strategy

23 Our business

2024 in brief

Letter from the Chair and the CEO At a glance Equity story Performance highlights 5-year consolidated financial highlights Outlook 2025 Capital allocation policy

LETTER

A year with new product innovation for our customers

The year began with good momentum, with growth tracking according to plan through the first half of 2024. However, a slowdown in demand in the Americas during the third quarter affected our Professional Business, prompting an adjustment of our full-year guidance in October. After a thorough review and assessment of the trajectory against the targets, we decided to withdraw long-term targets. In 2025, we will remain focused on delivering on our guidance for the year.

In 2024, we introduced cutting-edge products at major trade shows around the globe, presenting innovations that reflect our commitment to addressing customer needs. Meeting with customers and listening to them continues to drive our understanding of how we can create more value and strengthen partnerships.

As we close 2024, we reflect on a year of significant milestones and challenges. Across the business, we have made measurable progress, advancing strategic priorities in product innovation, and setting new benchmarks in sustainability.

This year, for the first time, we are reporting our financial and sustainability progress jointly in accordance with the new Corporate Sustainability Reporting Directive. While the more comprehensive work of combined reporting may be new to us, we have published sustainability reports since 2016, and we welcome this opportunity to enhance transparency and comparability across companies.

A year of variation in regional performance

The year revealed notable regional differences in performance. We saw strong performance in EMEA with growth across all segments. Key drivers included robust demand in several of our large and most important segments. We also saw major wins in markets like Germany, the UK, France, and Türkiye. This highlighted the region's strength and demonstrated our strong market position.

We experienced market headwinds in APAC like many other industrial companies, driven by macroeconomic challenges and geopolitical disruptions. On the back of that, our performance was lower than expected in 2024.

The Americas encountered a slowdown in demand, leading to volume declines. While price management positively impacted the first half, it was not enough to offset the overall decline. In September 2024, we rolled out our global ERP system in the US. The system strengthens our digital platform and opens improved ways of working.

Meeting with customers and listening to them continues to drive our understanding on how we can create more value and strengthen partnerships.

Jon Sintorn, CEO

On October 9, our high-pressure washer business located in Fort Pierce, Florida, was hit by extreme weather because of Hurricane Milton. Luckily no people were injured and there was only structural damage to the building, but the clean-up and rebuild is still affecting this site.

While we saw variations in the performance across the regions, the two business units Consumer and Specialty recorded strong growth, reflecting the benefits of recent optimization efforts and a sharper focus on customer needs.

Supply chain transformation

Operational improvements were a cornerstone of our efforts in 2024. By lowering order backlogs and running production lines efficiently, we have enhanced delivery speed and reliability for our customers.

Through strategic initiatives – including insourcing critical production, optimizing machine customization, and expanding dual sourcing – we have strengthened supply chain resilience, reduced lead times, and reduced greenhouse gas emissions in our own operations and in the use phase. Continued investment in the implementation of automation in China has also positioned us for greater productivity and long-term stability.

Innovation for the future

In 2024, we further increased our R&D investments, allocating 38.4 million EUR to future innovations. The increased R&D investments that we have made over the previous couple of years yielded several positive results in 2024. We launched a range of new cleaning solutions designed to optimize every stage of the cleaning process, enhancing productivity and introducing energy efficiency features.

Notable introductions included the next-generation walkbehind scrubber-dryer, SC550, redefining efficiency, the autonomous SC25, and a new compact micro-scrubber, all of which address unmet market needs. These products have been warmly received by customers, and in 2025, we will continue this momentum with further product launches throughout the year.

We are also excited to welcome Eerikki Mäkinen, who joined the Nilfisk Leadership Team as Head of Products, Technology & Innovation in February 2025. Eerikki will build on Nilfisk's strong heritage of creating iconic products, driving innovation that meets customer needs.

Advancing sustainability

Sustainability remains integral to our strategy, driving value for both our customers and our business with substantial advancements in 2024. We decreased our absolute marketbased Scope 1 and 2 greenhouse gas emissions by 22% compared to 2019, and Scope 3 greenhouse gas emissions intensity by 39% compared to 2021, sending us well on our way towards our near-term sustainability targets.

In 2024, we maintained a strong CDP Climate Change score of A- for the fifth consecutive year. In addition, we were given a CDP Water Security score of B-. Another important highlight is that we received an EcoVadis Gold Medal for the third consecutive year. Scoring 80 out of 100 points, Nilfisk is now placed in the 98th percentile of all the global companies rated by EcoVadis. It is our target to sustain a gold medal rating in the coming years.

Furthermore, direct sustainability inquiries from existing and potential customers are increasing, in particular requests for climate and environmental data.

Acknowledging contributions

Our customers build the foundation for everything we do, and we look forward to continuing our valued collaboration with you. Through close dialogue, we will drive innovation and create value together. Your feedback is truly invaluable, and we are excited to continue our partnership in the years to come.

We would also like to extend a thank you to our shareholders for your continued support in an evolving economic landscape. And last, but not least, thank you to all our employees for your dedication and continuous strive for excellence.

Moving forward, we will maintain our focus on execution and innovation to ensure a bright future for Nilfisk.

Jon Sintorn Peter Nilsson
CEO Chair

June 17, 2024, marked the beginning of my tenure as CEO. I am excited about the opportunity to shape the future of Nilfisk together with our dedicated employees and valued customers. This has been a year of learning for Nilfisk, and I am confident in our ability to grasp the opportunities ahead and to navigate the challenges. To our employees, thank you for your professionalism, passion, and the unique Nilfisk spirit that powers us. Your dedication inspires me.

Jon Sintorn, CEO

Letter from the Chair and the CEO At a glance Equity story Performance highlights 5-year consolidated financial highlights Outlook 2025 Capital allocation policy At a glance

all companies reporting to EcoVadis.

Scope 3 greenhouse gas emissions from the use of sold products per unit of gross profit, based on 2021.

Female

28%

Male

71%

Non-binary/ not disclosed

1%

MR SS FS

Our solutions

With a product portfolio spanning from advanced industrial vacuum solutions to high-pressure washers and floorcare equipment, Nilfisk has a unique range in terms of breadth and depth.

Letter from the Chair and the CEO At a glance Equity story Performance highlights 5-year consolidated financial highlights Outlook 2025 Capital allocation policy Equity story

Our equity story

Strong market position supported by megatrends

Established over 100 years ago, Nilfisk is a top-three global provider of professional cleaning products and services. Our products are sold in more than 100 countries, and we serve a broad range of customers in various industries and segments. Nilfisk operates in a growing market driven by an increase in living standards globally and increasing cleaning requirements, both of which drive demand for machine cleaning.

Value creation through further growth in Service

Future growth in Service is expected to come from building and expanding upon close customer relationships, as well as growing Nilfisk's network of quality technicians to supply a broad service offering in key markets. Nilfisk is committed to investing further in Service, which is a strong growth driver and contributes positively to the EBITDA margin. Nilfisk's Service Business provides strong cash flow with recurring revenues and measurable progress.

Technology led innovation with sustainability at the core

Nilfisk is committed to developing innovative products by leveraging valuable customer insights and create meaningful value. This approach strengthens our partnerships and ensures we align with our customers' priorities. Driven by technology-led research and development, Nilfisk's next generation of products sets new standards in performance while optimizing resource efficiency. Our focus remains on fostering growth through sustainable product innovation, delivering solutions that empower our customers to succeed.

Leading product portfolio and global presence

Nilfisk provides premium products across addressable markets, including a full range of Professional Floorcare, High-Pressure Washers, and VACS, alongside a Consumer offering. Nilfisk makes continuous investments in product development to support product vitality and deliver a strong and modern offering to customers. Regional supply chains decrease external dependency and allow Nilfisk to balance risks posed by heightened global uncertainty.

Delivery of profitable growth and improved financial health

Through strong cash flow generation and disciplined capital allocation policies, Nilfisk has improved EBITDA and free cash flow generation in recent years. This growth has enabled targeted reinvestment into R&D – including a new product pipeline – as well as efforts to increase the continued growth in Service. Since 2021, net interest-bearing debt has also been reduced, increasing financial resilience for Nilfisk.

Resilient business model to drive sustainable capital allocation

Nilfisk's capital structure is constructed to ensure the financial flexibility required to execute on its business strategy. Going forward, the main objective is a continued reduction of net interest-bearing debt and further strengthening of the balance sheet. When financial gearing is sustainably within the target range between 1.5x and 2.0x, distributions by way of dividends or through the repurchase of shares are expected at around onethird of profit after tax.

Financial highlights 2024

In 2024 Nilfisk delivered organic growth of 1.2% and increased margins by 0.4 percentage point. The performance was impacted by the slowdown in demand in the Americas and the macroeconomic challenges in APAC. Organic revenue growth and EBITDA margin before special items were in line with the latest outlook announced on October 24, 2024.

1,027.9 mEUR 1.2% 135.8 mEUR

Revenue

Revenue decreased by 0.6% compared to 2023, driven by the slowdown in demand in the Americas, alongside the macroeconomic challenges in APAC. This was partially offset by strong growth in EMEA and diligent price management across the business supported revenue.

EBITDA margin before special items (bsi)

The EBITDA margin bsi came to 13.2%, an increase of 0.4 percentage point. The increase in gross margin offset the impact from the decline in revenue and the higher overhead cost.

13.2% 13.2% 40.6 35.3
mEUR mEUR
2022 2023 2024

Profit for the year

Profit for the year amounted to 35.4 mEUR, in line with the prior year. The EBITDA bsi improvement was partly offset by higher financial items, while special items were lower than in 2023.

12.8% 13.2% 40.6 35.4
mEUR mEUR mEUR

Organic growth

Free cash flow

Organic growth for the total business was 1.2%. Consumer delivered very strong organic growth of 19.7%. Specialty and Service delivered organic growth of 4.9% and 0.6% respectively. Professional reported negative organic growth of 0.9%, impacted by the slowdown in demand in the Americas.

to support the launch of new products.

Free cash flow was 7.7 mEUR. Operating cash flow declined to 51.9 mEUR during 2024. Cash flow was negatively impacted by changes in working capital, as inventory grew

EBITDA before special items (bsi)

EBITDA bsi was higher by 3.4 mEUR. This was supported by a gross margin improvement driven by price management and operational efficiencies. A favorable product mix benefited EBITDA bsi, which offset lower volumes and higher overhead costs.

13.2% 35.4 mEUR 7.7 mEUR 270.1 mEUR

Net interest-bearing debt (NIBD)

NIBD reached 270.1 mEUR, an increase of 17.9 mEUR, driven by an expansion in working capital. The gearing increased to 2.0x and remained within the target range of 1.5-2.0x.

40.6 54.5 115.2 7.7 324.7 252.2 270.1
mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR
2022 2023 2024 2022 2023 2024 2022 2023 2024

Letter from the Chair and the CEO At a glance Equity story Performance highlights 5-year consolidated financial highlights Outlook 2025 Capital allocation policy Performance highlights

Sustainability highlights

Reduction in Scope 1 and 2 greenhouse gas emissions Target of 35% emissions reduction by 2030, from 2019 base year. 22% absolute emissions reduction achieved in 2024.

Reduction in Scope 3 greenhouse gas emissions intensity Target of 48% emissions intensity reduction by 2030, from 2021 base year. 39% emissions intensity reduction achieved in 2024.

Women in top management

In 2024, Nilfisk had a representation of 31% women in top management, which is comprised of the Nilfisk Leadership Team and their direct reports. The target is to have 34% of the underrepresented gender in top management by 2026 and equal representation by 2030 (minimum 40/60).

Points by EcoVadis

In 2024, Nilfisk was awarded an EcoVadis Gold Medal, scoring 80 out of 100 points, demonstrating an advanced sustainability management system. The annual target is to maintain Gold.

65/100 68/100 65/100 80/100
2021 2022 2023 2024

2026

2030

2024

2023

Sustainability ratings and frameworks

Nilfisk is committed to offering transparency on our performance regarding environment, social, and governance.

In 2010, Nilfisk committed to the 10 principles of the UN Global Compact and has approved Science-Based Targets for all three scopes since January 2022.

Today, we disclose performance through several internationally-recognized providers of sustainability ratings.

In 2024, Nilfisk received an EcoVadis Gold medal for the third consecutive year and upheld a strong CDP Climate Change score of A- for the fifth consecutive year. In addition, the Institutional Shareholder Services Group (ISS) gave Nilfisk an ESG score of C+, identifying Nilfisk as an ISS 'industry prime' company.

Read more about our sustainability ratings and frameworks on page 63.

Scope 1 emissions are directly created by owned or controlled sources, including facilities and vehicle fleet.

Scope 2 emissions are from purchased sources such as electricity, steam, and heating.

80/100

39%

31%

Scope 3 emissions are all other indirect upstream and downstream emissions that occur in the value chain. Nilfisk's Scope 3 target aims at reducing greenhouse gas emissions from category 11 'use of sold products'.

18% 22% 35%

30% 31% 34% 40%

Letter from the Chair and the CEO At a glance Equity story Performance highlights 5-year consolidated financial highlights Outlook 2025 Capital allocation policy 5-year consolidated financial highlights

5-year consolidated financial highlights

EUR million 2024 2023 2022 2021 2020
Income statement
Revenue 1,027.9 1,033.6 1,069.5 994.9 832.9
EBITDA before special items1 135.8 132.4 140.8 144.3 100.5
EBITDA1 129.4 123.1 133.3 139.9 90.6
Operating profit before special items1 71.9 71.1 79.5 84.1 32.9
Operating profit1 65.5 61.2 69.6 79.7 22.1
Special items, net -6.4 -9.9 -9.9 -4.4 -10.8
Financial items, net -22.2 -14.7 -17.0 -11.6 -14.7
Profit (loss) for the year 35.4 35.3 40.6 51.0 -2.6
Cash flow
Cash flow from operating activities 51.9 143.0 82.0 74.7 89.5
Cash flow from investing activities -44.2 -27.8 -27.5 -16.2 -16.0
– hereof investments in property, plant and equipment -13.9 -8.6 -10.5 -5.8 -5.4
– hereof investments in intangible assets -32.2 -22.4 -15.9 -11.7 -11.6
Free cash flow excluding acquisitions and divestments 7.7 115.2 54.5 58.5 73.5
Statement of financial position
Total assets 894.7 814.0 863.4 841.2 763.5
Group equity 319.4 275.0 260.7 207.7 134.8
Working capital 179.0 139.6 202.1 175.7 131.6
Net interest-bearing debt 270.1 252.2 324.7 338.5 382.0
Capital employed 589.5 527.2 585.4 546.2 516.8
Financial ratios and employees
Organic growth 1.2% -0.3% 4.9% 20.7% -11.5%
Gross margin1 42.2% 40.9% 39.5% 40.5% 41.6%
EBITDA margin before special items1 13.2% 12.8% 13.2% 14.5% 12.1%
EBITDA margin1 12.6% 11.9% 12.5% 14.1% 10.9%
Operating profit margin before special items1 7.0% 6.9% 7.4% 8.5% 4.0%
Operating profit margin1 6.4% 5.9% 6.5% 8.0% 2.7%
Financial gearing1 2.0 1.9 2.3 2.3 3.8
Overhead costs ratio1 35.2% 34.0% 32.0% 32.0% 37.7%
CAPEX ratio 4.5% 3.0% 2.5% 1.8% 2.0%
Working capital ratio1 16.9% 17.8% 21.6% 15.4% 18.8%
Return on Capital Employed (RoCE)1 12.8% 12.7% 13.4% 15.8% 5.9%
Basic earnings per share (EUR) 1.31 1.30 1.50 1.88 -0.10
Diluted earnings per share (EUR) 1.31 1.30 1.50 1.88 -0.10
Number of full-time employees, end of period 4,787 4,698 4,655 4,887 4,339

Read more details in the section Financial definitions on page 182.

1 In 2020, amortization/impairment of acquisition-related intangibles is no longer presented in a separate line in the income statement. In addition, share of profit from associates is presented in a separate line under operating profit in the income statement. Letter from the Chair and the CEO At a glance Equity story Performance highlights 5-year consolidated financial highlights Outlook 2025 Capital allocation policy Outlook 2025 Capital allocation policy

Outlook for 2025

Organic revenue growth is expected to be between 1% and 3% and the EBITDA margin before special items is expected to be in the range of 13.0% to 14.0%.

This is expected to be driven by continued positive momentum in EMEA, supported by the launch of new products in the second half of 2024. A normalized order book in the Americas is expected to influence the Professional and Service Businesses, while the outlook for Consumer and Specialty remains strong. Potential trade barriers present additional uncertainty for Nilfisk.

The financial outlook for 2025 is based on several assumptions including:

  • Stable market conditions in EMEA
  • Neutral development in the US versus 2024
  • The APAC region returning to moderate growth
  • Limited impact from tariffs

Organic revenue growth

1% 3%

EBITDA margin before special items

13.0% 14.0%

Forward-looking statements

Statements made about the future in this report reflect the Executive Management Board's current expectations with regard to future events and financial results. Statements about the future are by their nature subject to uncertainty, and the results achieved may therefore differ from expectations, due to economic and financial market developments, legislative and regulatory changes in markets that the Nilfisk Group operates in, development in product demand, competitive conditions, energy and raw material prices, and other risk factors.

Nilfisk Holding A/S disclaims any liability to update or adjust statements about the future or the possible reasons for differences between actual and anticipated results except where required by legislation or other regulations.

Capital allocation policy

At the end of December 2024, Nilfisk's capital structure was comprised of approximately 36% equity and 64% debt. This capital structure provides the financial flexibility required to execute the company's strategy, with excess cash to be allocated across the following areas:

Funding Research & Development

Nilfisk will continue to invest a low single-digit percentage of revenue in 2025 into innovation. This will be primarily directed towards the development of new products and technologies. Nilfisk will also continue to invest in IT systems that increase productivity, as well as production capacity optimization initiatives.

Further deleveraging

Nilfisk will continue to allocate free cash flow towards the reduction of net interest-bearing debt. Since the beginning of 2021, Nilfisk has generated 235.9 mEUR of free cash flow, which has resulted in a 111.9 mEUR reduction in net interest-bearing debt. Deleveraging and further balance sheet strengthening continues to be a high priority for Nilfisk in 2025 and beyond.

Basis for distributions

Nilfisk's target for financial gearing – defined as net interestbearing debt to EBITDA before special items – is between 1.5x and 2.0x. This excludes financing of any potential M&A. When the gearing is sustainably within the target range, distributions by way of dividends or share buybacks are expected at around one third of profit after tax.

Strategic direction Strategy progress report

Our strategy

VP300 R is the first product Nilfisk has launched using recycled plastics. The VP300 R, released early 2024, is made from 30% post-consumer recycled (PCR) plastic, reducing landfill waste. Recycled plastics is a dimension of sustainability and underscores our commitment to leading with sustainable products.

Strategic direction Strategy progress report Strategic direction

Strategic progress in 2024

At the beginning of 2022, Nilfisk launched Business Plan 2026. During 2024, the third year of the business plan, progress was made in some areas, while other areas encountered challenges. In particular, the goal to 'Grow in large-scale markets' has faced challenges due to a demand slowdown in the US. This led to Nilfisk removing two of the three financial targets in Business Plan 2026: revenue of 1.2 to 1.3 bnEUR and the EBITDA bsi margin above 16%.

Nilfisk maintains the strategic framework of Business Plan 2026 as a roadmap for delivering on our strategic direction.

Nilfisk strategy direction

The strategy is centered around six strategic levers, three strategic priorities, and three optimization opportunities. These are the three strategic priorities that have been identified as critical to securing long-term growth:

  • Develop service-as-a-business
  • Grow in large-scale markets
  • Lead with innovation and sustainable products.

In addition, three existing growth platforms have been identified as optimization opportunities:

  • Expand EMEA leadership position
  • Enhance supply chain robustness
  • Unleash growth of Specialty Business.

Both the strategic priorities and the optimization opportunities offer the potential to strengthen our leading position in the professional cleaning equipment industry and ensure higher value creation.

Read more about our 2024 progress within the strategic levers on the following pages.

Strategic direction Strategy progress report Strategic direction

Strategic direction towards long-term sustainable growth

2024

65

Strategic progress report

Lead with innovation and sustainable Enhance supply chain robustness products

Reductions in Scope 3 emissions intensity

* Kg CO2 eq/ EUR gross profit, based on use of sold products (Category 11) from a 2021 base year.

Russia revenue

Enhance supply chain robustness plan is well under way towards delivery:

Working strategically with sustainability

Building a sustainable future for generations to come requires embedding sustainability throughout our company. This principle is a fundamental part of Nilfisk's strategy. Our sustainability commitment is anchored in three mutually reinforcing levers: the Nilfisk value proposition and the two strategic priorities, to develop service-as-a business and to lead with sustainable products.

During 2024, Nilfisk continued to upgrade our sustainability capabilities through internal and external recruitments, updated roles and responsibilities, increased frequency of management reporting, and a strengthened focus on training. As the organizational maturity levels increase, we will focus on further advancing functional and regional accountability to deliver on the sustainability commitments.

A reiterative process that develops our strategy and business

We use the Double Materiality Assessment (DMA) as a strategic tool to align and calibrate our actions with our overall strategy. The DMA evaluates topics affecting our financial performance and how our activities impact these topics. We expand our commitments and targets through the DMA process, which drives business development and impact.

We continuously update our strategy and ways of working based on DMA outcomes. Read more in the Sustainability Statements section, starting on page 61.

EnvironmentalSocialGovernance

Value proposition

Strategic priorities

Ways of working

services Sustainability commitment

Lifecycle Customer-centric innovation

Nilfisk's value proposition is based on three fundamental pillars: Sustainability commitment, Lifecycle services, and Customer-centric innovation. These serve as guiding principles for Nilfisk's innovation of products and services to ensure that the company creates value for all stakeholders, including customers, employees, investors and local communities.

service-as-a-business Develop

Lead with innovation and sustainable products

enabled

Execution culture

Digitally

Empowered people

Service-as-a-business is a key strategic priority for Nilfisk. This entails a move towards increasing the offering of services throughout the lifecycle of products. The goal is to extend the technical and economic life of Nilfisk products by offering comprehensive solutions to customers. This includes service plans that ensure timely service, value-adding upgrades, and customized leasing and rental solutions. Extending the lifetime of products helps conserve energy and resources and reduce waste.

Our ambition is to lead with innovation and sustainable products. We will continue to provide upgrades to our current offering of products, introducing new technologies, materials, features, and digital functionalities. New products or platforms will be designed to be significantly more energyand resource-efficient than previous versions. Through modularity, we will be able to broaden our offering while controlling costs, improving serviceability, and reducing complexity. This will allow for resource-optimized, scalable growth that contributes to our sustainability commitments.

We believe that empowered people thrive in an enabling culture and we continuously work towards fostering a growth mindset, collaboration, and sustainability. To achieve this, we have built an execution culture based on value drivers and initiatives that are systematically and digitally tracked and managed. To enhance customer-centricity, execution agility, and results ownership, we have empowered our employees by delegating responsibility, thereby mobilizing the entire organization and instilling a culture that supports effective execution. Together, these three elements – execution culture, digital enablement, and empowered people – form a powerful engine driving our ways of working and long-term sustainable growth.

Strategic priorities

In 2024, Nilfisk continued to strengthen its Field Service operations as a key driver of long-term growth, focusing on solidifying its position in EMEA to accommodate the customers' needs. This region, with its strong technician network and established service processes, serves as the foundation for global expansion.

Customer satisfaction improved significantly in 2024 with a Servicetransactional Net Promoter Score (tNPS) rising from 65 to 75.

In the Field Service area of the business, the EMEA and APAC led with growth while the Americas region declined. The PAC (Parts, Accessories, and Consumables) business declined in all three regions in 2024.

In 2024 the Service Business delivered a 26% service contract attachment rate at point of sale. Technician capacity grew by 7%, improving service responsiveness and first-time-fix rates.

Customers were introduced to Nilfisk My Fleet, an online platform for viewing and managing connected cleaning machines. With seamless access via mobile app and web platform, fleet managers can control machines and receive productivity insights anywhere, at anytime.

A core priority of Nilfisk's strategic direction is growth in large-scale markets, with an initial focus on the US – the world's largest market for professional cleaning equipment, which accounts for approximately 35% of global demand.

In 2024, a slowdown in demand led to a performance below expectations in the Americas. However, Nilfisk remains committed to delivering long-term growth in the region going forward.

As part of the digital enablement initiative, Nilfisk implemented the Global SAP Template, a unified enterprise resource planning system. This platform integrates Sales, Service, Operations, and Finance across the US, Mexico, and most of EMEA, improving data management and collaboration. This system enhances operational efficiency and positions Nilfisk for scalable growth in large markets.

These efforts demonstrate Nilfisk's commitment to strengthening its market presence while building a robust foundation for sustainable expansion.

Develop service-as-a-business Grow in large-scale markets Lead with innovation and sustainable products

In 2024, we launched innovative product solutions that increase productivity, meet heightened cleaning standards, and address labor challenges in the professional cleaning industry.

The SC25 machine was launched in the spring and fills a gap in the market for smaller autonomous machines. The smaller scrubber-dryer has been well-received by customers and was being delivered to customers in large quantities by end of the year. Another new innovation was launched in November, the Nilfisk Dryft. A replacement for the traditional mop, the Dryft cleans small spaces fast and efficiently.

We also launched our first next generation product in 2024. These new products save energy, optimize ergonomics, and use recycled materials. Nilfisk remains committed to its Scope 3 target of a 48% emissions intensity reduction by 2030, a target that will be reached partly through the delivery of new more energy efficient products.

The SC550, Nilfisk's next-generation walk-behind scrubber-dryer, redefines efficiency with intuitive controls, adaptable design for various user needs, and significant resource savings, compared to previous machines, 27% less energy, and 60% less detergent. The SC550 is also designed to include 30% post-consumer plastic which will be implemented during 2025.

Nilfisk continues to prioritize and invest in new products, targeting 25% energy efficiency savings and the use of recycled plastic, with product launches planned in 2025 and onwards.

Optimization opportunities

Expand EMEA leadership position Enhance supply chain robustness Unleash growth of Specialty Business

In 2024, Nilfisk achieved significant milestones in the EMEA region, with strategic investments fueling growth across key markets. We reaped the benefits of a new operating model and leadership structure, and sharpened our go-to-market strategy. Among several positive developments, we have secured significant deals in the UK, Ireland, East Europe and South Europe, and built a stronger foundation for continued success in our focus segments.

We saw a continuing upward growth trend throughout the year and despite market headwinds in some parts of Europe, our relentless focus on providing the relevant product offerings and services to contract cleaners, retail chains, institutions and industrial customers has delivered results.

Investments made in recent years to expand service capabilities, along with improvements in delivery capabilities, secured a positive year. Our ability to meet customer needs has been recognized by progress in customer satisfaction scores and improved loyalty. With our accelerated focus on meeting customer vertical needs, we are confident in sustaining growth.

Global supply chain challenges and geopolitical developments require strong risk management and resilient supply chains. Nilfisk has taken on this challenge, and as of 2024, our supply chain robustness plan is ahead of schedule. We have already finalized several improvements and optimization initiatives. Our production lines are now running efficiently, and the order backlog has been reduced to normal levels.

With a series of supply chain transformation projects globally, Nilfisk has optimized its control of the full value chain by insourcing critical production, increasing the share of direct shipments to customers, and optimizing machine customization processes.

Through dual sourcing, delivery performance has increased, and Nilfisk has significantly reduced disruptions in production and has shortened lead times.

To further support growth and customer demand, we have invested in productivity improvements, including adding automation at our production site in China. In Hungary and Mexico, we have invested heavily in productivity projects and footprint projects, giving us significantly improved output efficiency, leading to lowering of manufacturing costs. This supported our gross margin expansion in 2024.

When it comes to the Industrial Vacuum Solutions (IVS) business, the implementation of Nilfisk's strategic direction consists of two key phases: rebuild and expand. During the first half of 2024, we completed the transformational rebuild phase, focused on rebuilding and creating a robust business unit setup that spans the entire value chain, with an emphasis on customer-focused innovation, product excellence, and strong delivery.

In the second half of 2024, our focus shifted to expansion, achieving significant geographical growth in key markets such as the US, Germany, France, and the UK. We successfully launched four new products mid-year with a quick time-to-market and an operational framework designed for agility.

Our strategic efforts are already delivering results. The US market tracked well, driven by investments in specialist sales teams initiated in January 2023, with tangible outcomes visible in 2024. The order book at the end of 2024, was substantially higher than in 2023, profitability remained solid, and supply chain disruptions were no longer a concern. Notably, we have reduced the average time-to-market for new products launched this year to less than 12 months, enabling faster response to customer needs.

CASE

Designing ergonomic cleaning equipment for a healthier work environment

Nilfisk puts the users of our machines in the center of the design process, developing cleaning equipment that adjusts to different human needs. This ergonomic approach helps businesses create a healthier work environment, reducing work-related injuries and subsequent absences.

Operating a cleaning machine for hours every day can lead to musculoskeletal disorders, typically affecting the back, shoulders, and neck.

That's why Nilfisk has put the people using the cleaning equipment at the heart of our design and innovation processes. We no longer only focus on the effectiveness of the cleaning machines, but also consider how the machines impact the diverse range of users who often take turns using the same cleaning machine.

Our new walk-behind scrubber dryer, the SC550, presented at Interclean trade show in May, prioritizes ergonomic flexibility. Nilfisk has crafted a machine that adjusts to the different heights of cleaning operators, offsetting the physical stresses placed on staff while operating the

machinery. The machine tailors itself to each specific person through personalized logins, reducing the risk of fatigue and muscle-related problems.

Our tailored, people-focused design helps employers and contractors provide a healthier work environment, which in turn helps businesses overcome the challenge of critical staff shortages. It helps avoid prolonged absences or staff departures due to poor working conditions.

Targeting our end users' needs is pivotal for Nilfisk's innovation and design. We are always creating additional value for customers through a customer-centric mindset.

By designing ergonomically correct next-generation machines that enhance end-user comfort, Nilfisk helps individuals maintain a healthy work life. This ultimately supports companies by maintaining a strong and injuryfree workforce that can help create a cleaner and safer environment for all.

Operating model Customers Solutions Channels Operations R&D Integrating sustainability

Our business

24 Operating model

Operating model Customers Solutions Channels Operations R&D Integrating sustainability Operating model

How Nilfisk operates

Enabling more sustainable cleaning solutions from upstream to downstream. For a more detailed illustration on sustainability-related topics, see section on our value chain page 67.

Business activities

Grounded in internationally-recognized sustainability principles, Nilfisk transforms end-user needs into solutions, leading to customer-centric innovation and design.

Sales channels

Channels across more than 100 countries include direct sales, indirect sales through dealers and retailers, and e-commerce platforms.

Consumers

Consumers are served with a range of vacuum cleaners and high-pressure washers.

Resource inflow

Nilfisk purchases raw materials, components for machines, parts, accessories, and consumables. Through good governance practices, Nilfisk seeks to mitigate negative social and environmental impact.

Customer touchpoints

Touchpoints include Customer Care and Field Service technicians.

Service and takeback

Nilfisk offers customers comprehensive lifecycle service solutions to prolong product lifetime by increasing serviceability. Once the products have reached the end of life, Nilfisk offers select takeback.

Professional customers

Professional customers range from large global companies buying fleets to smaller businesses buying single products.

Operating model Customers Solutions Channels Operations R&D Integrating sustainability Customers

Covering fleets to single machine customers

Our customers range from large global customers buying fleets of machines to smaller businesses and consumers buying a single piece of cleaning equipment. We work with our customers in four business verticals covering 15 application segments.

Contract Cleaners and Institutions

This vertical includes Contract Cleaners and Institutions, such as Education, Office & Public Buildings, Retail, Healthcare, and Hospitality. Optimizing cleaning task efficiency is key, as customers in these segments are facing labor shortages alongside heightened standards for high-quality cleaning results, often in public-facing environments.

The industry vertical covers areas like Manufacturing, Warehousing and Logistics, Food & Beverage, Iron & Metal, and Pharma. For customers in these industries, cleaning is a key element in ensuring efficient and safe production workflows, proper maintenance of production equipment, and compliance with quality standards and regulations.

Agriculture, Building & Construction, Automotive

Robust and high-performing cleaning solutions play an important role in securing safe work conditions in dirty, dusty, and harsh environments, such as Agriculture, Building & Construction, and Automotive. In addition, it is key to these customers that their essential equipment is maintained regularly for optimal use.

Consumer

In addition to our professional customer base, Nilfisk also offers consumers a range of highpressure washers and vacuum cleaners.

& Logistics

Agriculture Building & Automotive Construction

Operating model Customers Solutions Channels Operations R&D Integrating sustainability Solutions

Innovating with the customer in mind

Nilfisk develops, manufactures, and sells a comprehensive portfolio of cleaning solutions and services targeting the premium and mid-range markets for professional cleaning, complemented by cleaning solutions tailored to households.

At Nilfisk, innovation and product development start with our value proposition to provide lifecycle services, ensure customer-centric innovation, and fulfill our sustainability commitment. In combination with deep customer insights, this value proposition is the guiding principle for the development of products and services via close cross-functional collaboration between R&D, Product Management, external technology partners, and customers.

Product development for most of our products is managed from three competence centers, one in each of our regions EMEA, Americas, and APAC. R&D is in a total of six locations across Denmark, Italy, the US, and China. In 2024, approximately 3.7% of total revenue was spent on R&D, an increase from the average level of approximately 2.9% for the years 2021 to 2023.

Nilfisk has a unique product range in terms of breadth and depth versus peers in the industry. Our product portfolio spans from advanced industrial vacuum solutions, to pressure washers and floorcare equipment, to simpler yet effective household vacuum solutions. These products and our services are designed to ensure customer value through high durability, enhanced productivity, and a strong focus on sustainability and safety.

In 2024, Nilfisk launched a range of new products, including the walk-behind scrubber dryer SC550, the compact autonomous solution SC25, and the Nilfisk Dryft. Furthermore, we introduced new high-pressure washers in our professional segment, several new IVS machines, and the VP300 R vacuum cleaner in post-consumer recycled plastic.

Operating model Customers Solutions Channels Operations R&D Integrating sustainability Solutions

What we do

Nilfisk's largest product line is floorcare, spanning a wide range of scrubber dryers from small walk-behinds to large ride-ons and autonomous solutions. It also includes sweepers, combination machines, carpet extractors, and burnishers. Our products enable our users to deliver a great customer experience and to provide good working conditions and a safe environment for end users in compliance with health and safety regulations.

With continued labor shortages in the cleaning sector, Nilfisk sees a growing need for autonomous solutions in floorcare alongside traditional cleaning solutions in order to offer a complete suite of solutions for our customers.

Nilfisk offers a wide range of vacuum cleaners for commercial customers and households. Our products range from small commercial cannisters and upright and backpack vacs to professional wet & dry and safety vacs to large industrial systems. Each product is designed to ensure clean, attractive spaces in homes, hospitality, offices, and transportation, as well as safe and clean working conditions in construction, manufacturing, and food production by removing hazardous and explosive dust and fumes.

Nilfisk offers an extensive range of consumer and professional pressure washer products, both stationary and mobile, and for either cold or hot water. This wide range ensures that home and gardening needs are easily handled, and that farming, building, transportation, and industrial equipment is always in great condition, ready for use. Our products are known for their compliance with strict health and safety regulations for farming and food production.

Easy and quick access to professional service is a key value proposition for our customers, especially when they are looking for productivity gains. With the help of our service technicians, customers can maximize the efficiency of their cleaning operations across the entire equipment lifecycle.

Nilfisk offers a comprehensive range of service solutions. With our strategic focus on building service-as-a-business, both existing and new customers are offered service contracts when relevant for the chosen equipment. The service contracts provide a combination of preventive maintenance, needed repairs including parts and labor, and consumables to ensure optimal performance.

About 750 Nilfisk Field Service Technicians and an additional 300 authorized third-party technicians work within Nilfisk Service Solutions to deliver service, maintenance, and advice. Third-party technicians are certified by Nilfisk to ensure consistent service quality across our global network. Nilfisk Service Business has the largest coverage in EMEA regions via our own Field Service Technicians, while third-party technicians are used more frequently in Americas and APAC.

In addition to our range of service solutions, Nilfisk offers spare parts, accessories, and consumables (PAC) for all product groups.

Service Digital Solutions

Nilfisk is also developing new customer-centric and scalable digital solutions that harness the potential of data collection and mining to transform professional cleaning. By gathering and analyzing data, these solutions convert information into actionable insights that empower customers to optimize cleaning processes, enhance operational efficiency, and gain a competitive edge. These insights are presented through the Nilfisk Connectivity Portal designed to help customers drive real business value.

Beyond the customer-facing benefits, data-driven insights hold significant potential internally, offering opportunities to improve service delivery, guide product development, boost sales efficiency, and support growth. This approach reflects Nilfisk's commitment to pioneering a smarter, data-focused future for the cleaning industry, benefiting both customers and internal operations.

Operating model Customers Solutions Channels Operations R&D Integrating sustainability Solutions

Next generation products

Nilfisk's next generation of products is focused on a deep understanding of our customer and end user needs, resulting in a range of cleaning solutions that are more simple, intuitive, adaptable, and more sustainable than previously.

As exemplified by the new SC550 floor scrubber-dryer that launched in 2024, we have created a product that sets a new usability benchmark in the cleaning industry. The machine can physically and digitally adapt to different users, languages, and profiles. Guided by colored user interaction touch points, the end user can adjust both the height and angle of the interface, reducing the risk of fatigue and injury while increasing productivity.

Additionally, the SC550 demonstrates multiple dimensions that support our sustainability ambitions. With an emphasis on applying new technologies, we have designed a machine

that can accommodate up to 30% post-consumer plastics and is 27% more energy efficient compared to older generation machines such as the SC500. Incorporating circular practices, the machine is also prepared for refurbishment, remanufacturing, and component recycling to minimize waste. Furthermore, the SC550 is easy to maintain, service and repair, which will prolong the lifetime of the machine.

The new user interface includes pre-calibrated cleaning settings that carefully control the use of water, detergents, and electricity while ensuring the right quality of cleaning performance. In combination these numerous customer benefits contribute to reducing the total cost of ownership.

From 2025 onwards, Nilfisk will introduce more nextgeneration products, reflecting our commitment to customers and the planet.

Operating model Customers Solutions Channels Operations R&D Integrating sustainability Channels

Serving our customers through various channels and touchpoints

With a global sales force and well-established sales channels, Nilfisk has developed valuable customer relationships and partnerships all over the world, supporting our targeted go-tomarket approach.

More than 1,500 full-time employees work in Nilfisk sales force and service functions across more than 40 countries in our three regions: EMEA, Americas, and APAC. These employees support both direct sales and service to customers as well as working through our dealer channels. Nilfisk's teams focus on delivering the highest levels of customer satisfaction and ensuring that doing business with Nilfisk is as simple as possible.

Direct sales

Building relationships with customers while offering personal attention and quality service are key parameters for our national sales teams. Dedicated national key account management including inside sales means our sales force can provide customers with the most relevant information along with offers for standardized packages of machines and cleaning solutions. Nilfisk takes a strategic partnership approach to our largest accounts, offering internationallycoordinated key account management. We offer individually selected packages of equipment as well as financial solutions and we take pride in providing services tailored to our customers' needs.

Indirect sales

Some geographies and customer types are served by validated distributors. Through an extensive network of dealers, retailers, and selected distributors, Nilfisk's products and solutions are sold in more than 100 countries. Indirect sales providers range from large national exclusive dealers to smaller vendors selling a variety of cleaning products and brands. These selected distributors help us achieve solid market access, a wide customer base, and an intimate understanding of the local markets, in many cases building on existing relationships with specific businesses and customer segments.

Customer Service

Nilfisk Customer Care teams are in contact with customers all over the world every day, helping customers with solutions to problems related to cleaning equipment or processes. They leverage the latest technologies within voice, mail, and digital communication. Nilfisk focuses on delivering the highest level of customer satisfaction and ensuring that doing business with Nilfisk is as simple as possible. Customer satisfaction (measured by Relationship Net Promoter Score (RNPS)) rose in 2024. Customers

reported satisfaction with our products and the professionalism of our salespeople, Customer Care teams, and Field Service Technicians.

Field Service

Nilfisk's field service organization is a cornerstone of our customer success strategy, supported by over 820 factorytrained and certified technicians worldwide. Our field service technicians repair, refurbish, and recycle machine components. This aligns with Nilfisk's ESG goals and environmental commitment by prolonging the products' lifespan. In 2024, we expanded service capacity by 7%, further improving our service response times and enhancing service delivery to better meet our customers' needs. Our field service experience fosters customer loyalty, and we are dedicated to being a trusted partner, ensuring our customers can operate efficiently and sustainably.

E-commerce

Nilfisk serves professional customers and consumers via e-commerce platforms, providing enhanced flexibility for customers to order whenever it suits them. Nilfisk sells consumer products via web shops in several markets directly to end users, as well as cleaning equipment to professional customers via a B2B platform.

This year, Nilfisk continued strengthening its e-commerce offering to the professional segment, which will come to fruition in early 2025, when Nilfisk launches a new B2B e-commerce platform. In addition to providing access to a full range of machines, the new e-commerce platform will also offer service agreements, parts, accessories, and consumables.

The goal is to ensure an improved and streamlined online buying experience for both consumers and professional customers while simplifying and globalizing digital sales processes.

1,500

full-time employees

work in Nilfisk's sales force and sales support function across the world

countries in three regions

Our three regions are: EMEA, Americas, and APAC region

Operating model Customers Solutions Channels Operations R&D Integrating sustainability Operations

Operations

Operations drives planning, sourcing, logistics, manufacturing, and quality to ensure that the three regions – EMEA, APAC, and Americas – are supported with completed products and parts.

Operations and manufacturing

Nilfisk's manufacturing setup is based on assembling components purchased from external suppliers or made in-house. Assembly is done at Nilfisk's eight manufacturing sites located on three continents. As part of the strategic direction optimization, efforts to enhance supply chain robustness have resulted in the manufacturing setup changing towards a more local-for-local setup. This entails sourcing of parts and components closer to manufacturing sites, limiting transportation time, as well as reducing Scope 1 and 2 emissions. Regional supply chains also decrease external dependency and allow Nilfisk to balance risks posed by heightened global uncertainty.

Cost-effective sourcing of components, alongside a comprehensive sales and operations planning process leading to efficient manufacturing and distribution, are important value creation factors for Nilfisk. This enables timely decisions, scalability, proactive shaping of demand, and financial predictability, all enhancing supply chain robustness.

Distribution

The majority of Nilfisk's product range is shipped from Nilfisk's seven distribution centers, but an increasing share of products is being shipped directly from the manufacturing sites to our customers. This is a result of our ongoing focus on improving the customer experience, reducing carbon emissions and lead-time, and continuously striving for better solutions and lower costs.

Nilfisk uses sea freight for intercontinental logistics and trucks for road logistics, seeking the most sustainable logistics solution.

ISO 9001 certifications ISO 14001 certifications

  • ISO 45001 certifications
  • ISO 50001 certifications

8 7 Manufacturing sites Brooklyn Park (MN, US) Fort Pierce (FL, US) Querétaro (Mexico) Sziget (Hungary) Nagykanizsa (Hungary) Aalborg (Denmark) Zocca (Italy) Dongguan (China)

Distribution centers

Springdale (AR, US) Morgantown (PA, US) Ghent (Belgium) Tarragona (Spain) Trollhättan (Sweden) Horsens (Denmark) Shanghai (China)

Operating model Customers Solutions Channels Operations R&D Integrating sustainability Operations

CASE

Securing the supply chain with a dual sourcing strategy

By implementing a dual sourcing strategy, Nilfisk ensures a robust supply chain that enhances delivery performance, optimizes robustness in production output, and minimizes overall risk. This strategy is a key component of our strategic direction.

In recent years, geopolitical turmoil has caused global supply chain challenges. The COVID-19 pandemic disrupted global trade when production slowed down or came to a halt and countries locked down. When the war in Ukraine broke out, companies suddenly withdrew from all activities related to Russia. And in 2023, attacks on container ships in the Red Sea forced international shipping reroute to south of Africa.

Nilfisk has always worked on improving and securing its supply chain, but with these global challenges the importance of an efficient and robust supply chain was underscored.

Over the past year Nilfisk has launched near-shoring projects in Mexico and China. By relocating production and sourcing of raw materials and components closer to key markets, Nilfisk enhances operational flexibility, improves capacity to meet regional demands, and reduces lead times and logistical risks. Near-shoring also mitigates transportation

delays and trade fluctuations. These two projects alone involve 250 parts for the Americas and more than 1,000 parts for the Asia-Pacific region.

Furthermore, Nilfisk has executed tool duplication projects for the manufacturing of light iVac-products, making sure to always have several suppliers of the most crucial tools used for production. This initiative ensures seamless production of more than 30 critical product items. With this proactive step, Nilfisk minimizes downtime risks related to tool shortages or wear, ensuring continuous production flow to meet the constant market demand.

To reduce lead times and lower risks tied to international logistics, Nilfisk has established a regional base of Parts, Accessories, and Consumables suppliers in Europe. This minimizes the risks of depending on single-sourced supplies.

The strategic focus on sourcing locally also reduces pollution from transportation, which matches Nilfisk's commitment to sustainability.

These are just some of Nilfisk's ongoing investments in supplier robustness to ensure operational stability and long-term market competitiveness.

Operating model Customers Solutions Channels Operations R&D Integrating sustainability R&D

R&D

Innovation is deeply rooted in Nilfisk's DNA and is key to our future. Our R&D setup transforms specialized insights into roadmaps for the development of cleaning products and solutions.

Nilfisk has concentrated R&D resources and capabilities in six competence centers strategically positioned across our regions and supported by two satellite R&D facilities for continued development work. The collective strength of our engineers is rooted in their deep insights into specialized domains, enabling the centers to serve as a hub for the development of both mechanical and autonomous cleaning machines as well as new solutions.

Our R&D work covers a full range of applications such as floorcare, vacuum cleaners, pressure washers, industrial vacuum solutions, and consumer products. Beyond tangible products, R&D also actively contributes to the development of technology, enterprise modules, modular software, and architectures, enriching our product ecosystem and shaping the innovation roadmap.

The competence centers provide the R&D teams with bestin-class facilities that include effective test labs, essential equipment, practical tools, and design software, aiding in the development of sustainable products while also serving as focal point for customer engagement. In addition, they provide dedicated training spaces for our sales and service teams. Core R&D facilities

Brooklyn Park (MN, US) Hadsund (Denmark) Zocca (Italy) Piacenza (Italy) Dongguan (China) Suzhou (China)

6

ISO 9001 certifications ISO 14001 certifications ISO 45001 certifications

Satellite R&D facilities: Sziget (Hungary) Querétaro (Mexico)

Operating model Customers Solutions Channels Operations R&D Integrating sustainability R&D

Relentless innovation is crucial for the future success of Nilfisk. Since 2021, Nilfisk has increased its investments into Research and Development. Spend has been allocated to developing new innovation and refreshing our core product offering.

performance in EMEA in 2024.

With a full innovation funnel from elevated R&D in recent years, Nilfisk is well positioned to continue to address our customers' needs with new and relevant products in the years ahead.

positive, with new innovation contributing positively to our

Increased R&D investments over the past years has yielded results, with several new product launches in the second half of 2024. Early results and customer feedback has been

Investments in R&D 2020-2024

2020 2021 2022 2023 2024 Total
EUR million 23.1 25.6 30.8 33.1 38.4 151.0
R&D ratio (% of revenue) 2.8% 2.6% 2.9% 3.2% 3.7%

Operating model Customers Solutions Channels Operations R&D Integrating sustainability Integrating sustainability

Integrating sustainability into our business

At Nilfisk, sustainability is embedded throughout our company, and leading the industry with sustainable products is a key strategic priority.

Nilfisk has been at the forefront of developing highperforming cleaning equipment for 119 years, consistently recognized for the exceptional quality and longevity of our products. Our machines are designed to last and are easy to service and maintain, and can even be refurbished when they are no longer functional. This vision, originally established by Peder Andersen Fisker in 1906, remains integral to our DNA and is an important aspect of our sustainability commitment and value proposition.

Sustainability is a value driver

Sustainability is increasingly important to our customers, investors, employees, and other stakeholders and is an integrated part of our company strategy and planning. In 2024, an insights study we conducted showed us that sustainability is among the top four value drivers for our customers regarding cleaning.

By developing innovative, sustainable cleaning solutions for our customers and providing data transparency, we

empower informed decisions and create meaningful impact that adds value for all our stakeholders.

Leading with innovation and sustainable products Our heritage and strategic direction are rooted in designing safe, efficient, and durable products driven by customercentric innovation. By integrating sustainability into our product development, we aim to lead with sustainable solutions, explore service-based business models, and strengthen our market position.

Our innovation strategy focuses on creating new products and upgrading existing ones with sustainability at the core. Complementing this, our lifecycle services extend product lifespans, enhancing both serviceability and environmental impact.

We take a lifecycle approach to product sustainability, addressing every stage – from design and material sourcing to manufacturing, distribution, use, reuse, and responsible end-of-life management.

Sustainability linked in the organization

Nilfisk is connecting sustainability financially through a sustainability-linked loan agreement and corporate bonus schemes. The interest margin on one of our credit facilities and our short- and long-term incentive programs are tied

to Nilfisk's annual progress towards our sustainability commitments. Based on these initiatives, we are paving the way for Nilfisk's development into a sustainabilityenabled organization.

Disclosing progress

In 2010, we committed to the 10 principles of the UN Global Compact, and our commitment remains firm.

Aligned with the CSRD, the principle of double materiality is the foundation for how Nilfisk prioritizes and executes on sustainability initiatives, including how we contribute to the UN Sustainable Development Goals (SDGs).

We have had approved Science-Based Targets (SBTi) for Scope 1, 2, and 3 since January 2022 and take pride in being one of the first companies in the cleaning industry to adopt a science-based and transparent approach to sustainability.

Furthermore, we disclose our impacts through several internationally recognized sustainability frameworks such as CDP, EcoVadis, and Sedex.

Based on these efforts, we believe that we have paved the way for Nilfisk's ongoing development as a truly sustainability-enabled organization.

Business performance Financial review Q4 performance Quarterly overview

Our financial results

36 Business performance

Business performance

Revenue and organic growth by operating segments

EUR million Revenue 2024 Revenue 2023 Organic
growth 2024		 Impact of foreign
exchange rates		 Total growth
Professional 585.8 603.6 -0.9% -2.0% -2.9%
Service 299.8 302.4 0.6% -1.5% -0.9%
Specialty 65.0 62.6 4.9% -1.1% 3.8%
Consumer 77.3 65.0 19.7% -0.8% 18.9%
Total 1,027.9 1,033.6 1.2% -1.8% -0.6%

2024 in brief

Total revenue was 0.6% lower than in 2023, driven by the slowdown in demand in Americas, macroeconomic challenges in APAC and negative currency impact. Price management across the business supported revenue.

EBITDA before special items corresponding to an EBITDA margin before special items of 13.2%. 135.8 mEUR

6.4 mEUR

Special items

mainly related to restructuring costs and costs incurred for strategic improvement projects.

51.9 mEUR

Operating cash flow

down by 91.1 mEUR compared to the prior year. Free cash flow came to 7.7 mEUR, a decrease of 107.5 mEUR from higher working capital.

Organic growth

Strong organic growth in Consumer and Specialty and limited organic growth in Service was partially offset by negative organic growth in Professional.

EBITDA corresponding to an EBITDA margin of 12.6%. 129.4 mEUR

65.5 mEUR

Operating profit corresponding to an operating profit margin of 6.4%.

179.0 mEUR

Working capital corresponding to a working capital ratio of 16.9% measured on a rolling 12-month basis.

Professional Business

In 2024, the Professional Business faced headwinds in Americas and APAC, while EMEA delivered positive organic growth compared to 2023.

Total revenue amounted to 585.8 mEUR compared to 603.6 mEUR in 2023, corresponding to reported growth of -2.9%. The effect of foreign exchange rates was -2.0%, consequently, organic growth for the full year came to -0.9%.

Private Label saw strong organic growth and impacted Professional Business positively. Floorcare delivered flattish growth while VAC and HPW saw organic decline. The negative organic growth in Americas was driven by a slowdown in demand alongside the US high-pressure washer business being impacted by a hurricane in the last quarter of 2024. In APAC, the majority of the underlying markets faced headwinds from macroeconomic challenges. This was partly offset by solid organic growth across EMEA. Strong price management continued to contribute positively to growth across all three regions.

Gross profit for the Professional Business amounted to 239.6 mEUR, equal to an increase of 7.6 mEUR from 2023. This corresponded to a gross margin expansion to 40.9% compared to 38.4% in 2023. The gross margin improvement was driven by strong price management and optimization of product mix, offsetting the lower volumes in Americas and APAC.

Overhead costs were 199.7 mEUR in 2024, representing a decrease of 2.0 mEUR from 2023. The decrease was driven primarily by the effect of foreign exchange rates partially offset by sales activity-related costs and merit increases across the organization. Prudent cost management mitigated part of the negative organic growth leading to an overhead cost ratio of 34.1%, 0.7 percentage point higher than 33.4% in 2023.

As a result, the EBITDA before special items came to 79.4 mEUR, 10.3 mEUR higher than 2023, leading to an EBITDA margin before special items of 13.6%, an improvement of 2.2 percentage points compared to 2023.

The Professional Business covers all professional machines (floorcare, vacuum cleaners and highpressure washers) including Private Label.

Financial highlights

Revenue share by product category

2024

64% 15% 12% 9%
Floorcare
2023		 Vacuum
cleaners		 High
pressure
washers		 Private
Label
64% 16% 13% 7%
Floorcare Vacuum
cleaners		 High
pressure
washers		 Private
Label

Service Business

The Service Business continued to develop as a strategic priority for Nilfisk. However, Service was negatively impacted by the slowdown in demand in the Americas.

Revenue amounted to 299.8 mEUR in 2024 compared to 302.4 mEUR in 2023, corresponding to a reported growth of -0.9%. The effect of foreign exchange rates was -1.5% resulting in an underlying full year organic growth of 0.6%. Growth in the Service Business was driven by Field Service, while PAC (Parts, Accessories, and Consumables) delivered negative growth. From a regional perspective, EMEA was the driver of the growth due to a combination of continued price management and solid market demand. This was partly offset by negative growth in both Americas and APAC as revenue from PAC declined.

Gross profit for the Service Business amounted to 132.2 mEUR in 2024, down from 134.4 mEUR in 2023. The gross margin came to 44.1%, 0.3 percentage point lower than 44.4% in 2023. Price management contributed positively to the gross margin, while unfavorable business mix with a lower share of PAC sales, and cost inflation on labor resulted in the gross margin decline.

Overhead costs were 80.8 mEUR, an increase of 1.9 mEUR compared to 2023. The increase was primarily driven by merit increases, which resulted in an overhead cost ratio of 27.0%, 0.9 percentage point higher than 2023.

The EBITDA before special items came to 71.0 mEUR, 1.9 mEUR lower than in 2023. The EBITDA margin before special items landed at 23.7%, 0.4 percentage point lower than the level in 2023.

The Service Business contains a comprehensive range of service solutions throughout the lifecycle of our professional cleaning equipment. It captures field service offerings, including managed service packages and PAC for the Professional Business and IVS.

Financial highlights

299.8 mEUR 29% Revenue Share of total revenue 0.6% 71.0 mEUR 44.1% 23.7% EBITDA before special items Organic growth Gross margin EBITDA margin bsi

Revenue share by service category

2024

43% 57%
Field Service PAC
2023
41% 59%
Field Service PAC

Specialty Business

In 2024, the Specialty Business delivered strong growth in EMEA and Americas, while APAC saw negative growth. The demand for specialized cleaning solutions for both industrial and food purposes saw an increase across the US and in several major European markets, in part supported by the launch of new products.

Total revenue amounted to 65.0 mEUR, 2.4 mEUR higher than 2023, corresponding to reported growth of 3.8%. Foreign exchange rates negatively impacted the result by 1.1% leading to an underlying organic growth of 4.9%.

Gross profit amounted to 33.3 mEUR in 2024, flat to 33.2 mEUR in 2023 corresponding to a gross margin of 51.2%, a decrease of 1.8 percentage points from 53.0% in 2023. The decline was driven by unfavorable product and customer mix.

Overhead costs were 16.5 mEUR, an increase of 1.3 mEUR compared to last year driven by investments to support the new product launches during 2024. EBITDA before special items came to 19.1 mEUR compared to 20.2 mEUR in 2023, driven by the lower gross margin and increased overheads. The EBITDA margin before special items decreased to 29.4% in 2024 compared to 32.3% in 2023.

The Specialty Business covers IVS and Nilfisk Food. Service and PAC are included for Nilfisk Food.

Financial highlights

Consumer Business

The Consumer Business experienced very strong growth throughout all of 2024 as most markets experienced high demand and increased volumes, supported by new product innovation. Revenue was 77.3 mEUR in 2024, compared to 65.0 mEUR in 2023, resulting in reported growth of 18.9%. Organic growth amounted to 19.7% and was driven by the majority of EMEA markets including France, Germany, Denmark, Finland, and Sweden.

Gross profit increased by 5.9 mEUR from 22.9 mEUR in 2023 to 28.8 mEUR in 2024. Gross margin increased by 2.1 percentage points to 37.3% in 2024, up from 35.2% in 2023, driven mainly by a favorable product mix and lower inbound freight costs than prior year.

Overhead cost was 24.7 mEUR in 2024, 3.5 mEUR higher than in 2023. The increase was driven by merit increases and investments in marketing activities to support the new product launches. EBITDA before special items came to 6.5 mEUR compared to 4.5 mEUR in 2023, corresponding to a 1.5 percentage points improvement of EBITDA margin bsi to 8.4% in 2024.

The Consumer Business covers consumer machines, service, and PAC related to consumer products.

Financial highlights

Regions

EMEA

Revenue in the EMEA region amounted to 612.4 mEUR, an increase from 585.6 mEUR in 2023, corresponding to strong organic growth of 5.9% in 2024. Growth was broad-based as all segments delivered growth, driven in particular by strong performances within the Consumer and Specialty Businesses. New product launches and strong price management across the region resulted in positive organic growth in key markets, including Germany, UK, France and Spain.

Americas

Revenue in the Americas region amounted to 341.2 mEUR, a decrease of 24.7 mEUR from 365.9 mEUR in 2023. This corresponded to negative organic growth of 4.3% in 2024. The US was the main negative growth driver due to a slowdown in demand, which resulted in a volume decline within the Professional Business, partly offset by diligent price management. Furthermore, the US high-pressure washer business was adversely impacted by damages following Hurricane Milton in October 2024. This resulted in an approximately 7 mEUR negative revenue impact.

APAC

Revenue from the APAC region amounted to 74.3 mEUR in 2024, a decrease from 82.1 mEUR in 2023. Organic growth was negative 8.0% in 2024, and all segments showed unfavorable growth compared to last year. The region saw weak demand in several larger Asian markets, mainly Greater China and Singapore. Australia also delivered negative growth, due to weak demand and slowing market conditions. Continued price management offset part of the volume loss.

Revenue (mEUR) and organic growth (%) by region

EUR million Revenue 2024 Revenue 2023 Organic growth 2024
EMEA 612.4 585.6 5.9%
Americas 341.2 365.9 -4.3%
APAC 74.3 82.1 -8.0%
Total 1,027.9 1,033.6 1.2%

EMEA region Americas region

APAC region

Business performance Financial review Q4 performance Quarterly overview Financial review

Financial review

EUR million 2024 2023
Revenue 1,027.9 1,033.6
Gross profit 433.9 422.5
Overhead costs 362.0 351.4
EBITDA before special items 135.8 132.4
Profit for the period 35.4 35.3
Financial ratios:
Organic growth 1.2% -0.3%
Gross margin 42.2% 40.9%
EBITDA margin before special items 13.2% 12.8%
Overhead costs ratio 35.2% 34.0%
CAPEX ratio 4.5% 3.0%

Revenue

In 2024, total revenue for Nilfisk amounted to 1,027.9 mEUR compared with 1,033.6 mEUR in 2023, corresponding to a reported negative growth of 0.6%. Foreign exchange rates had a negative impact of 1.8%, driven mainly by movements in Turkish Lira and Argentinian Peso. Consequently, organic growth for 2024 was 1.2%, in line with the narrowed outlook provided on October 24, 2024.

The Consumer Business delivered very strong organic growth of 19.7%, while Specialty delivered solid growth of 4.9%. The Service Business delivered organic growth of 0.6%, while the Professional Business declined organically by 0.9%.

Revenue growth

Gross profit

Gross profit amounted to 433.9 mEUR in 2024 compared to 422.5 mEUR in 2023. The gross margin increased to 42.2%, 1.3 percentage point higher than in 2023. The gross margin improvement was driven by continued diligent price management, operational efficiencies, and a favorable product mix.

Overhead costs and ratio

Overhead costs amounted to 362.0 mEUR, reflecting an increase of 10.6 mEUR compared to 2023. The increase was primarily driven by investments in product launches including sales and marketing activities. Additionally, merit increases and inflationary pressure on general expenditure contributed to higher overhead costs. Consequently, the overhead cost ratio increased to 35.2% compared to 34.0% in 2023.

2024 2023
38.4 33.1
17.6 16.2
20.8 16.9
3.7% 3.2%
17.6 16.2
11.1 11.3
28.7 27.5

1 Excluding special items.

Total R&D spend increased by 5.3 mEUR compared to 33.1 mEUR in 2023. This was equivalent to 3.7% of total revenue in 2024. The increase was driven by investments in the product portfolio and modular platforms.

Out of the total R&D spend, 17.6 mEUR was recognized as an expense in the income statement compared to 16.2 mEUR in 2023, while 20.8 mEUR was capitalized compared to 16.9 mEUR in 2023. In addition to expensed costs, total reported R&D costs for 2024 were 28.7 mEUR, compared to 27.5 mEUR in 2023. This included amortization, depreciation, and impairment of 11.1 mEUR, compared to 11.3 mEUR in 2023.

Sales and distribution costs increased by 7.7 mEUR to a total of 259.4 mEUR. The increase was primarily driven by merit increases and investments in product launches. Nilfisk participated in two major trade shows: Interclean, Amsterdam and ISSA, Las Vegas in 2024.

Administration costs increased to 76.2 EUR compared to 74.6 mEUR in 2023, driven by merit increases.

Other operating income/expenses was a net income of 2.3 mEUR compared to a net income of 2.4 mEUR in 2023.

EBITDA before special items and EBITDA

EBITDA before special items amounted to 135.8 mEUR in 2024, corresponding to an EBITDA margin before special items of 13.2% compared to 12.8% in 2023. The EBITDA margin before special items was in line with the narrowed outlook for 2024 of an EBITDA margin before special items of 13% to 14% provided on October 24, 2024. The impact of the revenue decline and increased overhead costs ratio in 2024 was offset by a strong gross margin development leading to a net increase in the EBITDA margin before special items of 0.4 percentage point from 2023.

EBITDA amounted to 129.4 mEUR, up from 123.1 mEUR in 2023. The EBITDA margin increased by 0.7 percentage point to 12.6%, driven by the factors above and lower special items compared to 2023.

Operating profit before special items and operating profit

Operating profit before special items amounted to 71.9 mEUR compared to 71.1 mEUR in 2023. This corresponded to an operating profit margin before special items of 7.0% compared to 6.9% in 2023.

Operating profit came to 65.5 mEUR compared to 61.2 mEUR in 2023. Consequently, the operating profit margin increased to 6.4% from 5.9% in 2023. The increase was driven by higher operating profit partly offset by lower revenue compared to 2023.

Special items

Special items net amounted to 6.4 mEUR compared to 9.9 mEUR in 2023. Special items for 2024 were mainly advisory costs incurred for strategic improvement projects

Business performance Financial review Q4 performance Quarterly overview Financial review

and restructuring costs from consolidating the two US high-pressure washer operations. Furthermore, Nilfisk incurred costs related to the claim filed against by the owner of the US distribution center building in Springdale, Arkansas. Special items in 2023 of 9.9 mEUR were mainly redundancy and advisory costs incurred in connection with the continued execution of strategic projects, alongside the implementation of structural efficiency measures initiated in the first half of 2023.

Details on special items are described in Note 2.4 - Special items.

Financial items

Net financial items amounted to a cost of 22.2 mEUR in 2024 compared to a cost of 14.7 mEUR in 2023, driven by a combination of lower foreign exchange rate losses and 2023 being positively impacted from the realization of a 2-year interest cap instrument.

Tax on profit for the year

Tax on profit for the year was a cost of 11.9 mEUR in line with 12.0 mEUR in 2023. Tax on profit for the year 2024 was related primarily to current tax on profit of 14.1 mEUR partly offset by adjustment of current and prior years' deferred tax of 2.2 mEUR. In 2023, tax on profit for the year was related primarily to current tax on profit of 17.2 mEUR partly offset by adjustment of current and prior years' deferred tax of 5.2 mEUR.

The effective tax rate for 2024 was 25.2% compared to 25.4% in 2023.

Nilfisk has early adopted the EU Directive's requirement for Country-by-Country reporting, which can be found on page 58 of this report.

Profit for the year

Profit for the year amounted to 35.4 mEUR in line with a profit of 35.3 mEUR in 2023.

Working capital

At the end of 2024, working capital was 179.0 mEUR, an increase of 39.4 mEUR compared to 2023. The increase was driven mainly from operating working capital, primarily from higher inventories and trade receivables.

Inventories amounted to 233.1 mEUR, an increase of 32.6 mEUR from 2023 driven by a higher level of inventory build relating to the Consumer Business and new product launches.

Trade receivables came to 156.1 mEUR, corresponding to an increase of 17.4 mEUR from the end of 2023. The increase was a result of higher sales activities at the end of 2024. The non-recourse factoring program came to 31.8 mEUR at the end of 2024 compared to 33.7 mEUR at the end of 2023. Days sales outstanding overall increased compared to 2023. Trade payables increased by 4.2 mEUR and came to 127.7 mEUR end of 2024, following the development in inventory levels.

Other current receivables increased by 8.8 mEUR mainly from higher outstanding VAT receivables compared to the end of 2023 and an insurance receivable recorded in 2024 related to Hurricane Milton, which impacted the highpressure washer business located in Fort Pierce, Florida in October.

Other current liabilities increased by 15.0 mEUR primarily related to customer bonus and freight payables.

The 12-month average working capital ratio came to 16.9% at the end of 2024. The decrease of 0.9 percentage point compared to 2023 was driven by the lower than average working capital level.

Capital employed and RoCE

As of December 31, 2024, capital employed amounted to 589.5 mEUR, an increase of 62.3 mEUR compared to 2023. The increase in capital employed was driven by the abovementioned development in working capital.

The return on capital employed was 12.8%, 0.1 percentage point higher than for 2023.

Cash flow

Cash flow from operating activities amounted to a net inflow of 51.9 mEUR compared to a net inflow of 143.0 mEUR in 2023. Cash flow was negatively impacted by the outflow from changes in working capital, primarily from increased inventory and accounts receivable, where factoring decreased by 1.9 mEUR. Cash inflow from financial items was lower than the previous year as 2023 was positively

impacted by the realization of a 2-year interest cap instrument.

Cash flow from investing activities for 2024 amounted to a net cash outflow of 44.2 mEUR, corresponding to an increase in outflow of 16.4 mEUR compared to 2023. The increase was a combination of investments into strategic R&D projects alongside the continued rollout of SAP. CAPEX spending for the year ended as expected with 4.5% of revenue.

Free cash flow decreased by 107.5 mEUR compared to 2023 and amounted to 7.7 mEUR.

Equity

Equity was 319.4 mEUR at the end of 2024 against 275.0 mEUR at the end of 2023. Equity was positively impacted by the reported profit for the year, as well as foreign exchange rate gains adjustments.

Net interest-bearing debt

At the end of 2024, total net interest-bearing debt stood at 270.1 mEUR, up by 17.9 mEUR compared to end of 2023, mainly driven by investment in working capital.

The financial gearing at the end of the year was 2.0x versus 1.9x at the end of 2023.

Events after the balance sheet date

Other than as set out above or elsewhere in financial statements, the Executive Management Board is not aware of events subsequent to December 31, 2024 that are expected to have a material impact on the Group's financial position.

Q4 performance

EUR million Q4 2024 Q4 2023
Revenue 249.9 252.9
Gross profit 106.1 105.6
Overhead costs 90.8 86.3
EBITDA before special items 32.0 35.1
Profit for the period 6.4 7.6
Financial ratios:
Organic growth -0.6% -2.9%
Gross margin 42.5% 41.8%
EBITDA margin before special items 12.8% 13.9%
Overhead costs ratio 36.3% 34.1%
CAPEX ratio 4.5% 4.3%

specifically the US, and the macroeconomic challenges in APAC. This was partially mitigated by solid growth in EMEA and LATAM as well as price management. In addition, the US high-pressure washer business was adversely impacted by damages following Hurricane Milton during October, which halted normal business operations throughout the quarter.

Revenue from the Service Business decreased by 1.2% organically driven by continued slowdown in demand in the Americas. Field service saw growth in most markets, offset by lower PAC sales revenue impacted by reduced demand for Professional equipment.

Revenue

In Q4 2024, total revenue amounted to 249.9 mEUR, corresponding to negative reported growth of 1.2% compared to revenue of 252.9 mEUR in Q4 2023. Foreign exchange impacted Q4 negatively with 0.6% and lead to an organic growth of -0.6%. The slowdown in demand in the Americas and macroeconomic challenges in APAC, as well as hurricane damages to the US high-pressure washer business, were the main negative drivers of Q4 growth. This was partially offset by strong growth in EMEA.

In the Professional Business, organic growth was negative at 2.8%, impacted by slowdown of demand in Americas,

Revenue growth

In the Specialty Business, organic growth was 4.1% in Q4 2024, supported by strong growth in EMEA and APAC as well as overall price management. This was partly offset by muted demand in the Americas.

The Consumer Business delivered very strong organic growth of 24.2%, as overall demand remained strong with volume growth across most European markets. Finland, Spain, and France were the strongest contributors.

Gross profit

Gross profit was 106.1 mEUR, an increase of 0.5 mEUR from Q4 2023. The gross margin was 42.5%, 0.7 percentage point higher than in Q4 2023. The increase in margin was driven by mix effects, price management, and supply chain efficiency gains.

Overhead costs and ratio

Overhead costs increased by 4.5 mEUR compared to Q4 2023 and amounted to 90.8 mEUR, corresponding to an overhead cost ratio of 36.3%, 2.2 percentage points higher than in Q4 2023. The increase was driven by merit increases, product launches and investments into our product pipeline.

EBITDA before special items and EBITDA

EBITDA before special items came to 32.0 mEUR, 3.1 mEUR lower than Q4 2023. The decrease was due to the decline in revenue and increased overheads, partially offset by the higher gross margin. As a result, the EBITDA margin before special items was 12.8%. EBITDA came to 30.2 mEUR, corresponding to an EBITDA margin of 12.1%.

Financial highlights Q4

Revenue

249.9 mEUR

Organic growth

-0.6%

EBITDA bsi

32.0 mEUR

EBITDA margin bsi

12.8%

Business performance Financial review Q4 performance Quarterly overview Quarterly overview

EUR million Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
Quarterly overview Income statement
Revenue 249.9 240.6 278.4 259.0 252.9
EBITDA before special items 32.0 30.4 39.2 34.2 35.1
EBITDA 30.2 29.2 38.4 31.6 32.8
Operating profit before special items 15.3 14.3 23.4 18.9 19.3
Operating profit 13.5 13.1 22.6 16.3 16.9
Special items, net -1.8 -1.2 -0.8 -2.6 -2.4
Financial items, net -5.9 -6.2 -6.0 -4.1 -6.6
Profit for the period 6.4 5.5 14.2 9.3 7.6
Cash flow
Cash flow from operating activities 10.7 16.3 19.7 5.2 43.0
Cash flow from investing activities -11.4 -8.9 -11.3 -12.6 -10.8
– hereof investments in property, plant and equipment -2.9 -2.6 -2.8 -5.6 -2.8
– hereof investments in intangible assets -8.3 -8.1 -8.7 -7.1 -8.0
Free cash flow excluding acquisitions and divestments -0.7 7.4 8.4 -7.4 32.2
Statement of financial position
Total assets 894.7 871.8 867.6 853.9 814.0
Group equity 319.4 303.8 303.8 288.1 275.0
Working capital 179.0 167.4 171.1 162.4 139.6
Net interest-bearing debt 270.1 257.7 263.3 267.3 252.2
Capital employed 589.5 561.5 567.1 555.4 527.2
Financial ratios and employees
Organic growth -0.6% -0.8% 2.4% 3.7% -2.9%
Gross margin 42.5% 42.4% 42.2% 41.8% 41.8%
EBITDA margin before special items 12.8% 12.6% 14.1% 13.2% 13.9%
EBITDA margin 12.1% 12.1% 13.8% 12.2% 13.0%
Operating profit margin before special items 6.1% 5.9% 8.4% 7.3% 7.6%
Operating profit margin 5.4% 5.4% 8.1% 6.3% 6.7%
Financial gearing 2.0 1.9 1.9 1.9 1.9
Overhead costs ratio 36.3% 36.4% 33.8% 34.5% 34.1%
CAPEX ratio 4.5% 4.4% 4.1% 4.9% 4.3%
Working capital ratio 16.9% 16.3% 16.2% 16.9% 17.8%
Return on Capital Employed (RoCE) 12.8% 13.8% 14.0% 13.9% 12.7%
Basic earnings per share (EUR) 0.24 0.20 0.52 0.34 0.28
Diluted earnings per share (EUR) 0.24 0.20 0.52 0.34 0.28
Number of full-time equivalents, end of period 4,787 4,830 4,843 4,767 4,698

Corporate governance Board of Directors Nilfisk Leadership Team Shareholder information Responsible Tax Risk management

Our governance

Corporate governance

Nilfisk's governance structure consists of its Shareholders, the Board of Directors, and the Nilfisk Leadership Team.

Shareholders

The shareholders of Nilfisk Holding A/S exercise their decision-making rights at general meetings. At the Annual General Meeting, shareholders elect board members and the independent auditor, and they approve the Annual Report including company financial results, remuneration of the Board of Directors, discharge of liability for Management and the Board of Directors, as well as any dividend proposal or amendment to the Nilfisk Holding A/S Articles of Association. Shareholders may include additional topics on the agenda of the Annual General Meeting in accordance with the company's Articles of Association and the Danish Companies Act. The general meeting adopts decisions in accordance with the general rules set out in the Danish Companies Act.

The Board of Directors

The Board of Directors holds overall responsibility for the management of Nilfisk and the company's strategic direction. The Board of Directors consists of a total of eleven members. Seven members are elected by the shareholders and four members are elected by the employees. All

shareholder-elected members are up for election every year at the Annual General Meeting. The employee-elected members serve four-year terms. The current employeeelected members were elected in March 2022, and their terms will expire in 2026.

Among the shareholder-elected members are one woman and six men, corresponding to a female-to-male ratio of 17%. The employee-elected members include one woman and three men. Of the seven shareholder-elected members, one is Danish, three are Swedish, two are Norwegian, and one is French. Four members (57%) are considered independent and three are considered nonindependent (43%). The Board of Directors includes people with strong international business experience in the areas of industry, energy, high technology, finance, business management, ESG, and development. They are deemed to possess the required expertise and seniority. See pages 51-53 for particulars of Nilfisk's Board of Directors.

The Board of Directors has adopted an annual plan ensuring that all relevant matters are addressed throughout the year. A minimum of six ordinary Board meetings are held annually. Part of the Board's responsibility is to ensure that the company has a capital and share structure that matches its strategic direction and the long-term creation of value for the benefit of its shareholders. Considerations on capital and share structure are undertaken annually by the Board of Directors. Under the company's Articles of Association,

Executive Management Board

Jon Sintorn (CEO), Reinhard Mayer (CFO)

Responsible for the day-to-day management of Nilfisk, in accordance with duties given by the Board of Directors.

Nilfisk Leadership Team

Responsible for the day-to-day management duties assigned by the Executive Management Board.

Audit Committee

Viveka Ekberg (Chair), Bengt Thorsson

Oversight of financial and sustainability reporting, internal control and risk management, and the evaluation of external auditors.

Remuneration Committee

Peter Nilsson (Chair), Are Dragesund

Oversees the remuneration of the Board of Directors, Executive Management Board, and Nilfisk Leadership Team, and proposes changes to the Remuneration Policy.

Nomination Committee

Peter Nilsson (Chair), René Svendsen-Tune, Franck Falezan

Defines and recommends the qualifications for the Board of Directors and the Executive Management Board.

the Board of Directors holds authorizations granted by the shareholders to issue new shares, warrants, and convertible loans. The maximum aggregate nominal share capital increase allowed under these authorizations is 200 mDKK. However, in no event can the issuance of new shares without pre-emptive rights for existing shareholders exceed an aggregate nominal share capital amount of 100 mDKK. These authorizations are valid until March 24, 2027.

The Board of Directors also holds an authorization from the shareholders to acquire treasury shares up until and including March 24, 2027, up to an aggregate nominal amount of 54,252,720 DKK, corresponding to almost 10% of the company's current share capital. The company's holding of treasury shares at any time may not exceed 10% of the company's issued share capital. The purchase price for the relevant shares may not deviate by more than 10% from the price quoted on Nasdaq Copenhagen at the time of purchase.

Board Committees

The Board of Directors annually assesses the relevance of appointing separate Nomination, Remuneration, Audit, and other relevant committees. In 2024, the Board of Directors appointed three standing committees: the Audit Committee, the Nomination Committee, and the Remuneration Committee. All measures or recommendations from these committees are either reported to or approved by the Board of Directors. Additionally, the Chair meets regularly with the Executive Management Board of Nilfisk to discuss relevant topics in between Board meetings. All board committees report to the Board of Directors, and senior representatives from Nilfisk act as secretariat for the committees. The Audit Committee and the Remuneration Committee each has two members, whereas the Nomination Committee has three members. The Board of Directors considers this composition appropriate to ensure efficient and focused committee work, reporting, and decision-making within the Board of Directors.

Audit Committee

In 2024, the Audit Committee consisted of two members. The Audit Committee is appointed for one year at a time. All members possess the relevant financial expertise, and both members qualify as being independent.

The principal duties are:

  • To monitor the financial and sustainability reporting process and compliance with existing legislation, standards and other regulations for listed companies relating to presentation and publication of financial and sustainability reporting
  • To monitor whether the company's internal control and risk management systems function efficiently
  • To monitor the statutory audit of the annual and consolidated financial statements and the assurance of the annual and consolidated sustainability reporting
  • To monitor the independence of auditors and their supply of non-audit services to the Nilfisk Group
  • To make recommendations to the Board of Directors concerning the election of auditors

The work of the Audit Committee is described in its charter available online at Nilfisk's Investor Relations site and is formalized in an annual plan approved by the Board of Directors. The Audit Committee reports to the Board of Directors at all regular board meetings to ensure efficient decision-making.

In addition to its principal duties, the Audit Committee conducted a comprehensive review of all main corporate policies during 2024 before submitting the updated policies to the Board of Directors for approval.

The external auditors attend all Audit Committee meetings. An annual wheel is used to determine the subjects discussed in each meeting ensuring all relevant matters are covered. This includes statutory requirements alongside deep dives into current concerns.

The Audit Committee has received in-depth training sessions in the requirements of the Corporate Sustainability Reporting Directive (CSRD). The Audit Committee's sustainability competencies are assessed on an ongoing basis, and additional training and access to experts will be provided if relevant.

Read more about the Audit Committee's duties related to sustainability reporting in the Sustainability Governance section in the Sustainability Statements.

Internal control and risk management related to the financial reporting process

Nilfisk has several policies and procedures in specific areas of financial reporting, including the Accounting Manual, the Risk Management Policy, the IT Security Policy, the Treasury Policy, the Insurance Policy, the Tax Policy, and the Integrity Policy & Business Code of Conduct. These policies and procedures apply for all subsidiaries.

Risk assessment

The risks related to each accounting process and line item in the financial statement are assessed based on quantitative and qualitative factors. The associated risks are identified based on the evaluation of the likelihood of occurring and the potential impact. The financial reporting control framework covers all material subsidiaries. Please refer to the Risk Management section on page 59.

Control activities

Nilfisk has implemented a formalized financial reporting process for the strategy process, budget and forecast process as well as for the monthly internal reporting on actual performance. Financial information reported is reviewed both by controllers with regional or functional knowledge of the individual companies/functions and by technical accounting specialists.

The financial reporting is dependent on IT systems. A central controlling function conducts financial compliance reviews throughout the organization based on a defined review strategy and risk assessment. The key controls implemented based on the financial reporting framework are systematically monitored and tested in conjunction with controller visits performed by Nilfisk Group Controlling. Key controls, including general IT controls for subsidiaries considered relevant from a risk or/and risk perspective, are

tested at least once every five years. Internal controls related to the financial reporting process are established to detect, mitigate, and correct material misstatements in the financial statements.

Internal control and risk management related to the sustainability reporting process

Nilfisk has established various policies and procedures for sustainability, including ESG accounting manuals and a DMA Playbook. Specific policies are detailed in the Environment, Social, and Governance sections of the Sustainability Statements, applicable to the Nilfisk Group.

Risk assessment

Risks in the sustainability reporting process are assessed during data collection to ensure the integrity, completeness, and accuracy of the data, including value chain data. Priority is given to areas where main risks have been identified, which are areas that involve significant estimates and material risks of errors and misstatements.

Control activities

Nilfisk's structured sustainability reporting process includes a clear governance structure and segregation of duties. Subject matter experts prepare ESG data, which is reviewed and controlled by ESG controllers to ensure compliance. Internal controls are in place to detect, mitigate, and address material misstatements in sustainability reports.

Remuneration Committee

The overall responsibility of the Remuneration Committee is to oversee the remuneration of the Board of Directors, the Executive Management Board, and other members of the Nilfisk Leadership Team to ensure that the company's remuneration practice is appropriate, balanced, and effective

Corporate governance Board of Directors Nilfisk Leadership Team Shareholder information Responsible Tax Risk management Corporate governance

to achieve growth, profitability, and shareholder value. This responsibility includes establishing the Remuneration Policy for the Board of Directors and the Executive Management Board, making proposals on changes to the Remuneration Policy, and obtaining the approval of the Board of Directors prior to seeking shareholders' approval at the Annual General Meeting.

The Remuneration Committee also oversees the company's short-term and long-term incentive programs, including awards, target-setting, and a review of target achievements every year. The Remuneration Committee reports to the Board of Directors at all regular board meetings to ensure efficient decision-making.

Main activities in 2024

In 2024 the main activities of the Remuneration Committee have been:

  • Setting targets for the performance share program
  • Setting targets for the Group annual incentives plan
  • Reviewing achievement against targets under the company's annual incentive plan and the performance share program
  • Preparing, drafting and endorsed an updated Remuneration Policy to be presented to the General Meeting for approval in 2025
  • Endorsing warrant-based long-term incentive program for new members
  • Review and sign-off of the Remuneration Report. This can be found on Nilfisk's website

Nomination Committee

The purpose of the Nomination Committee is to define, recommend, and assess the qualifications required of the Board of Directors and the Executive Management Board, to initiate an annual self-assessment within the Board of

Directors, and to exercise grandfather rights with respect to members of the Nilfisk Leadership Team.

Self-assessments

The purpose of the annual self-assessment is to continuously evaluate the performance, composition, size and expertise required within the Board of Directors, and to identify future areas of focus.

Every third year the Board of Directors utilizes a professional consultant to assist with this assessment. The Board of Directors' 2024 self-assessment has been conducted with external consultant support (postponed from 2023). Conclusions from the 2024 board self-assessment conducted in the last quarter of 2024 were that the Board has the necessary and relevant competencies and experience but could benefit from additional diversity.

The Board of Directors also performs an annual assessment of the Executive Management Board covering two main areas: The interaction between these executives and the Board of Directors, and the expertise of these executives. The assessment takes the form of a general discussion by the Board of Directors, after which the assessment findings are communicated by the Chair to the CEO and CFO. The Chair will share the key messages from the Board of Directors' self-assessment at the Annual General Meeting.

The Executive Management Board and Nilfisk Leadership Team

The Board of Directors appoints the Executive Management Board, consisting of the CEO and CFO, who are responsible for the day-to-day management of Nilfisk. The CEO shall ensure that all duties imposed on the Executive Management Board by the Board of Directors are performed. In doing so, the CEO has organized the

day-to-day management duties of the Group by delegating or assigning tasks or responsibilities to members of the Nilfisk Leadership Team, who are appointed by the CEO in consultation with the Nomination Committee. As of December 31, 2024, the Nilfisk Leadership Team comprised nine members, including the CEO and CFO.

The Nilfisk Leadership Team is responsible for and provides oversight on sustainability matters through the Sustainability Steering Committee. Read more in the Sustainability Governance section in the Sustainability Statements.

See pages 54-55 for particulars of the Nilfisk Leadership Team as of February 20, 2025.

Corporate governance recommendations

As a listed company on Nasdaq Nordic, Nilfisk is subject to Nasdaq Nordic's rules governing share issuers, and also the corporate governance recommendations issued by the Danish Committee on Corporate Governance, which can be found at https://corporategovernance.dk. Nilfisk complies with all but two of the current recommendations:

• With respect to the recommendation that members of the Executive Management Board are not members of the Board of Directors, Nilfisk chose to appoint a member of the Board of Directors as interim CEO on August 17, 2023, as the Company's former CEO requested an early release from his duties due to family reasons. It was deemed in the best interest of the Company to appoint an interim CEO with deep knowledge of the Company, recent CEO experience, and the capability to continue executing the Company's 5-year business plan for the period 2022-2026. The decision was published, including that the interim appointment would end at the latest on July 1, 2024. The interim appointment lasted until June 17, 2024, when Nilfisk Holding's new CEO took up the position.

• With respect to the recommendation that a majority of the members of a board committee should be independent, this was the case for the Audit Committee and the Remuneration Committee, however, for the Nomination Committee two out of three members were considered non-independent as a consequence of one member's appointment as interim CEO during the period from August 17, 2023, to June 17, 2024.

The Company's statutory report on corporate governance includes the full list of recommendations, with comments on the Group's position on each recommendation. More details can be found in Nilfisk's annual reporting on the corporate governance recommendations available at Nilfisk's Investor Relations site https://investor.nilfisk.com/.

Danish Financial Statements Act

The disclosures under sections 99a and 107d of the Danish Financial Statements Act is made in the Sustainability Statements. The disclosure under section 99d of the Danish Financial Statements Act, including the Data Ethics Statement, is covered by a separate statement disclosed on our website https://www.nilfisk.com/global/professional/ about-nilfisk/sustainability/.

Corporate governance Board of Directors Nilfisk Leadership Team Shareholder information Responsible Tax Risk management Corporate governance

Board of Directors

2024 attendance overview

Board of Directors meetings Audit Committee Remuneration Committee Nomination Committee
Number of meetings 9 7 5 4
Peter Nilsson
René Svendsen-Tune
Are Dragesund
Franck Falezan
Bengt Thorsson1
Ole Kristian Jødahl
Viveka Ekberg2
Jutta af Rosenborg3
Gerner Raj Andersen
Claus Dalmose
Nadia Roya Damiri
Marcus Faber Kappendrup

1 Member of the Audit Committee since March 21, 2024.

2 Member of the Audit Committee until March 21, 2024. Chair of the Audit Committee since March 21, 2024.

3 Member of the Board of Directors and Chair of the Audit Committee until March 21, 2024.

Board of Directors
Age distribution
Age 66-70
1 pers
Age 61-65
2 pers
Age 56-60
1 pers
Age 51-55
2 pers
Age 46-50
1 pers
Nationality and gender distribution
Denmark Sweden Norway France

Denmark Norway Sweden France

1 woman (17%) 6 men (83%)

Nilfisk Leadership Team

Age distribution

Nationality and gender distribution Denmark Sweden France

Corporate governance Board of Directors Nilfisk Leadership Team Shareholder information Responsible Tax Risk management Board of Directors

Board of Directors

Peter Nilsson René Svendsen-Tune Are Dragesund Franck Falezan
Chair
Born 1962. Male
Independent		 Deputy Chair
Born 1955. Male
Non-independent		 Member
Born 1975. Male
Non-independent		 Member
Born 1971. Male
Non-independent
First elected in March 2022 October 2017 June 2020 June 2020
Expiry of current term March 2025 March 2025 March 2025 March 2025
Core competencies •
Executive management
•
Management of listed companies
•
Application of business models and value chains,
including service and aftermarket		 •
International management
•
Management of listed companies
•
Service businesses
•
Large account sales		 •
M&A and capital markets
•
Restructuring and profit improvement
•
Strategy and organization		 •
Strategy
•
Restructuring
•
Finance
Committees •
Nomination Committee
•
Remuneration Committee		 •
Nomination Committee		 •
Remuneration Committee		 •
Nomination Committee
Selected positions and directorships •
Chair of the board of directors of Lindab Group
•
Member of the board of directors of Cavotec SA and
Creades AB		 •
Deputy chair of the board of directors of
NKT A/S
•
Chair of the board of directors of Asetek A/S		 •
Co-Head Ferd Capital, Ferd AS
•
Member of the board of directors of
Mestergruppen A/S, Leroy Seafood Group ASA and
Brav AS		 •
Founder and Managing Partner at PrimeStone
Education •
MSc in Business and Economics		 •
BSc Eng. (hon.)		 •
MsC Economics and Business Administration		 •
Master in Business Administration
Nilfisk shares end of 20241 40,104 (40,104) 17,501 (11,501) 0 (0) 0 (0)

1 End of 2023 in parenthesis.

Corporate governance Board of Directors Nilfisk Leadership Team Shareholder information Responsible Tax Risk management Board of Directors

Board of Directors – continued

Bengt Thorsson Ole Kristian Jødahl Viveka Ekberg
First elected in
Expiry of current term
Core competencies		 Member
Born 1964. Male
Independent
March 2023
March 2025
•
International management
•
Business and service transformation
•
Mergers and Acquisitions
•
ESG		 Member
Born 1971. Male
Independent
March 2023
March 2025
•
Executive management, strategic and operational
•
Management of leading global industrial companies
•
Acquisitions, integrations, distribution and service
business		 Member
Born 1962. Female
Independent
March 2023
March 2025
•
Strategy development, change management and
profit improvement across multiple industries
•
Leading audit committees, financial and risk
management, reporting and control
•
Capital markets, financial analysis and investments
•
ESG
Committees Audit Committee N/A Audit Committee
Selected positions and directorships •
CEO and President of Permobil Group
•
Chair of the board of directors of GoodSolutions AB
•
Member of the Board of Directors of Envac Group		 •
President and CEO of Alimak Group AB
•
Member of the board of directors of Alimak
Group AB		 •
Member of the board and chair of the audit committee
of AutoStore Holdings Ltd, Lindab International AB,
Dellner Couplers Group AB, and member of the board
and audit committee of Storebrand ASA
Education •
BSc in Business Administration		 •
Economics studies at NHH, Norwegian School
of Economics		 •
MSc in Accounting & Finance and International
Business

1,000 (0) 5,515 (4,000) 9,500 (9,500)

1 End of 2023 in parenthesis.

Nilfisk shares end of 20241

Marcus Faber Kappendrup

Corporate governance Board of Directors Nilfisk Leadership Team Shareholder information Responsible Tax Risk management Board of Directors

Board of Directors – continued

Gerner Raj Andersen

Employee representative
Born 1966. Male		 Employee representative
Born 1967. Male		 Employee representative
Born 1978. Female		 Employee representative
Born 1976. Male
First elected in March 2018 March 2022 March 2022 March 2022
Expiry of current term March 2026 March 2026 March 2026 March 2026
Position at Nilfisk •
Customer Care Representative
•
Joined Nilfisk in 1990		 •
Director, Architecture & Technology
•
Joined Nilfisk in 2012		 •
Director, Operations Strategy & Program
Management Office
•
Joined Nilfisk in 2015		 •
Enterprise Architect
•
Joined Nilfisk in 1999
Committees N/A N/A N/A N/A
Selected positions
and directorships		 •
Owner of Mågaard I/S
•
Member of the board of Sem Vandværk		 N/A •
Daily Manager of the Occupational, Health & Safety
team at Nilfisk head office sites, board member in
the staff association at Nilfisk, and member of the
European Works Council (representing Denmark)
•
Voluntarily board member in Save the Children
Denmark (Capital Region)		 •
Board Member in the staff association at Nilfisk
Education •
Secondary program		 •
MSc in Electrical Engineering		 •
MSc in Supply Chain Management, with a minor
in IT-based modeling of Supply Chains and
implementation		 •
Degree in Business administration
Nilfisk shares end of 20241 500 (210) 130 (130) 145 (145) 32 (32)

Nadia Roya Damiri

Claus Dalmose

Corporate governance Board of Directors Nilfisk Leadership Team Shareholder information Responsible Tax Risk management Nilfisk Leadership Team

Nilfisk Leadership Team

Special Businesses, Group Marketing
International marketing, sustainability
International B2C sales and business
MSc in International Marketing &

End of 2023 in parenthesis.

1

Corporate governance Board of Directors Nilfisk Leadership Team Shareholder information Responsible Tax Risk management Nilfisk Leadership Team

Nilfisk Leadership Team – continued

Under recruitment
Peter Szabo Christopher Riau Thomas Dragø Nielsen Jon Sintorn
Executive Vice President
Operations & Supply Chain
Born 1972. Male		 Executive Vice President
EMEA Region & Service Business
Born 1979. Male		 Executive Vice President
APAC Region, PAC & Strategy
Born 1968. Male		 Interim Americas Region
Joined Nilfisk 2023 2007 1995
Core competencies •
International business leadership
•
R&D and global operations management
•
Manufacturing
•
Business transformations, lean transforma
tions, and sustainable growth development		 •
Service businesses
•
Commercial management
•
International sales
•
Industrial engineering		 •
General management & business
leadership
•
Commercial activation and execution
Positions and directorships N/A N/A N/A
Previous positions •
ISS A/S
•
Carrier (United Technologies Corporation)
•
Ford Motor Co.		 •
Elis
•
Robert Bosch
•
Mercedes-Benz		 •
Nilfisk Pty. Ltd. (Australia)
•
Nilfisk Ltd. (UK)
Education •
MSc in Mechanical Engineering with
specialization in Transportation & Process
Engineering from Budapest University of
Technology and Economics, Hungary		 •
General Management Program from
Harvard Business School
•
MSc Industrial Engineering from
CentraleSupélec ECP Engineering School
•
BSc Business and Production Manage
ment from Reutlingen-EMLV University		 •
MSc International Business Economics
Nilfisk shares end of 20241 2,766 (0) 2,100 (2,100) 3,552 (802)

1

Corporate governance Board of Directors Nilfisk Leadership Team Shareholder information Responsible Tax Risk management Shareholder information

Shareholder information

Nilfisk is listed on Nasdaq Nordic and is included in the Copenhagen Mid Cap index.

Share capital 27,126,369 shares
Nominal value per share 20 DKK
Closing price at December 29, 2023 118.20 DKK
Closing price at December 30, 2024 104.40 DKK
Change during fiscal year -11.7%

Ownership structure

The company has approximately 11,500 registered shareholders that own a combined 95.4% of total share capital. The company has one share class and the number of shares and voting rights are equal.

On December 31, 2024, Nilfisk's shareholder structure was:

Shareholders at December 31, 2024 Number
of shares		 Share
capital
Ferd AS, Oslo, Norway 6,587,923 24.3%
KIRKBI Invest A/S, Billund, Denmark 5,493,200 20.3%
PrimeStone Capital LLP, London,
United Kingdom		 1,675,034 6.2%
Danske Bank A/S, Copenhagen, Denmark 1,526,848 5.6%
Boldhaven Management LLP, London,
United Kingdom		 1,376,114 5.1%
Institutional investors, Denmark 2,901,799 10.7%
Institutional investors, International 3,371,406 12.4%
Private investors 2,923,804 10.8%
Non-registered 1,270,241 4.6%

Dividend policy and dividend for 2024

The Board of Directors have adopted a dividend policy with a target pay-out ratio of approximately one third of the reported, consolidated profit for the year. The payment of dividends, if any, will in general be determined with a view to balancing the payout ratio mentioned above and the target for the Group's leverage ratio. It will further depend on a number of factors, including future revenue, profits, financial conditions, general economic and business conditions, future prospects, strategic initiatives such as acquisition activities or large-scale investments decided

upon by the Board of Directors, or other factors the Board of Directors may deem relevant, as well as applicable legal and regulatory requirements.

At the Annual General Meeting to be held on March 19, 2025, the Board of Directors will propose not to distribute dividends for the financial year of 2024.

Investor relations website

Information about the Nilfisk Group and its shares, share price, financial data, in addition to company announcements, annual and interim reports, investor presentations, corporate calendar etc., are provided via https://investor.nilfisk.com.

Investor relations

Nilfisk works to maintain a transparent and consistent level of information for investors, and aims to be proactive and open when communicating with shareholder-related stakeholders within the boundaries of current regulation. Investor relations places great emphasis on providing consistent and high-quality information to financial markets, investors, analysts, and other stakeholders through road shows, conferences, company announcements, and via the investor relations website.

At year-end 2024, Nilfisk Holding A/S was covered by four equity analysts. For details on our investor relations policy and a list of equity analysts covering Nilfisk Holding A/S, please visit https://investor.nilfisk.com.

Corporate calendar 2025

February 20 Annual Report 2024
March 19 Annual General Meeting
May 13 Interim Report Q1 2025
August 14 Interim Report Q2 2025
November 20 Interim Report Q3 2025

Corporate governance Board of Directors Nilfisk Leadership Team Shareholder information Responsible Tax Risk management Responsible tax

Responsible tax

Nilfisk's guiding principle is to observe and comply with all applicable international tax regulations and initiatives, along with all reporting and disclosure requirements.

Nilfisk monitors developments to proposed international disclosure requirements and strives to follow both the demands and the intentions of these requirements.

We do not operate in low-tax jurisdictions, tax havens, or in jurisdictions that are on the EU' s blacklist, nor do we use special tax optimization models designed for tax evasion purposes.

Nilfisk's tax policy is based on compliance with tax laws, tax risk management, transparent tax planning, use of incentives, and cooperation with governments and authorities.

Tax payments

Nilfisk's products and services are sold in more than 100 countries. That means our company contributes with taxes and duties collected worldwide including, without limitation, value added tax/global sales tax or other consumption taxes, withholding taxes, and excise duties.

Nilfisk pays corporate tax in Denmark, where the head office is located, and in the jurisdictions outside of Denmark where our subsidiaries are located. We pay income taxes in relation to our employment contracts as per applicable laws.

Effective tax rate

For 2024, the Nilfisk Group's effective tax rate was 25.2% (2023: 25.4%, 2022: 25.6%), which shows that Nilfisk's tax contributions are at a stable rate.

Country-by-country report

Nilfisk acknowledges the need for transparency where it concerns taxpayers and tax administrations, and the need to clarify our position on taxes. In doing so, our company provides insight in accordance with the EU Directive 2021/2101 of the European Parliament and of the Council of 24 November 2021 amending Directive 2013/34/EU as regards disclosure of income tax information by certain undertakings and branches which introduce public countryby-country reporting requirements.

Publishing this report based on the EU Directive is an early adoption of requirements that are mandatory for fiscal years starting in or after June 2024. See the country-by-country report on the following page.

Corporate governance Board of Directors Nilfisk Leadership Team Shareholder information Responsible Tax Risk management Responsible tax

Country-by-country report for 2024

This report is based on the principles of the OECD Country-by-country reporting guidelines. The report includes various intercompany transactions. For this reason, numbers listed in the country-by-country report cannot be reconciled directly to the ones in our Financial Statements.

Tax jurisdiction Business
activity		 Revenue1 – unrelated
party
(kEUR)		 Revenue1 – related
party
(kEUR)		 Total Revenue1 – unrelated
and related party
(kEUR)		 Profit/loss before
income tax
(kEUR)		 Income tax paid
(on cash basis)
(kEUR)		 Income tax accrued
(current year)
(kEUR)		 Accumulated
earnings
(kEUR)		 Number of full-time
employees
(FTE)
Denmark Principal 49,552 477,757 527,309 4,502 269 1,064 229,919 391
Austria Sales 8,810 164 8,974 344 75 94 3,256 31
Belgium Sales 18,693 136 18,828 596 150 149 1,751 48
Czech Republic Sales 6,955 1,654 8,609 244 28 58 227 34
Finland Sales 8,324 - 8,324 226 68 42 294 16
France Sales 107,838 2,934 110,772 3,190 803 866 2,394 235
Germany Sales 149,087 3,119 152,206 5,597 1,798 1,586 -7,544 313
Greece Sales 9,425 176 9,601 200 2 -24 19 20
Hungary Sales/Production/R&D 6,525 184,276 190,801 8,884 547 746 7,542 853
Ireland Sales 2,826 29 2,855 110 20 14 312 2
Italy Sales/Production/R&D 25,075 25,668 50,743 3,096 - 943 22,110 166
Netherlands Sales 25,772 1,827 27,599 852 214 213 3,133 81
Norway Sales 17,956 68 18,024 402 93 87 344 42
Poland Sales 12,684 639 13,323 267 - 12 687 52
Portugal Sales 7,663 1,515 9,178 230 58 69 3,947 23
Romania Sales 2,849 27 2,875 85 - 14 552 13
Slovakia Sales 2,251 5 2,255 68 12 15 283 7
Spain Sales 22,793 801 23,594 617 173 158 3,695 100
Sweden Sales 21,441 386 21,827 550 254 115 183 51
Switzerland Sales 13,197 24 13,221 382 77 48 -1,302 32
Türkiye Sales 23,266 - 23,266 5,765 1,400 1,583 10,799 61
United Arab Emirates Sales 15,918 - 15,918 107 - 10 819 10
United Kingdom Sales 49,396 4,098 53,494 2,132 808 494 16,505 175
Total EMEA 608,296 705,303 1,313,596 38,446 6,849 8,356 299,925 2,756
Total Americas 347,361 107,221 454,582 3,443 6,286 2,046 -16,699 1,117
Total APAC 75,178 69,681 144,860 5,404 2,129 1,472 23,984 914
Total Nilfisk Group 1,030,835 882,205 1,913,038 47,293 15,264 11,874 307,210 4,787

Revenue is defined according to the EU Directive 2021/2101 and includes income from the sale of goods, assets, services, interest, and all other income.

1

Corporate governance Board of Directors Nilfisk Leadership Team Shareholder information Responsible Tax Risk management Risk management

Top five business risks

Risk management

Risk is a natural part of doing business. The current risk landscape is impacted by elevated geopolitical uncertainties and market dynamics in the segments in which we operate.

At Nilfisk we have a structured, consistent, and continuous approach to ensure that our risk exposure is assessed, minimized, and managed to the extent possible. The overall objective of risk management is to support the realization of Nilfisk's strategy and support our operational and financial objectives, ensuring that risks are properly identified and mitigated. We use an integrated risk management framework to identify, assess, manage, monitor, and communicate risks across the company.

The Board of Directors has oversight responsibility for risk management. One of the Board's responsibilities is overseeing and interacting with the Nilfisk Leadership Team with respect to key aspects of Nilfisk's business, including risk assessment and mitigation of key risks. Evaluation of key risks is carried out by the Board and risks are monitored on an ongoing basis.

The Nilfisk Leadership Team is responsible for the identification, assessment, prioritization, and mitigation of strategic, financial, operating, sustainability, compliance, safety, and reputational risks as well as risks related to other areas. Risks are assessed according to a two-dimensional heat map rating system estimating the likelihood and business impact.

Top five business risks

The five risk areas illustrated are identified as high impact business risks (post-risk mitigation) that could have a material, adverse effect on our business, financial condition and/or operating results. Read more about these risks on the following page.

For further information on risks related to currency, interest rate, credit, and liquidity, read more in Note 6.3 of the financial statements.

Sustainability-related risks

In the Sustainability Statements, we have included a Double Materiality Assessment (DMA) in line with the ESRS requirements over sustainability-related risks, including climate risks. Any risks identified in the DMA as financially material gross risks (pre-risk mitigation) have also been considered in the overall risk management process as sustainability-related risks identified in the DMA overlap with the enterprise risk management process, underlining the interrelation and synergies of the processes. Going forward Nilfisk will harvest even more learning from the integration of these co-existing risk frameworks.

To read more about sustainability-related risks, see the Sustainability Statements.

Corporate governance Board of Directors Nilfisk Leadership Team Shareholder information Responsible Tax Risk management Risk management

Nilfisk's high-impact business risks

Description of the five risk areas identified as high-impact business risks and related risk mitigation.

Risk Risk description Risk mitigation
1 Commoditization
and competition		 If we fail to adapt to changes in customer behavior and development of our products and services, our ability to execute on
strategy will be impaired and the long-term financial results of the Group will be impacted. Customer demand is changing
towards low-price "good-enough" products. At the same time, competition is intense, and low-cost competition might
reach a level at which customers would be reluctant to pay a premium for higher-quality products. The Nilfisk Group's
competitors include various large global and regional enterprises as well as smaller regional or local companies. Our
operational results and financial position may be negatively impacted if Nilfisk products do not satisfy customer demand.		 We monitor customer behavior via segment trends and purchasing loyalty. Nilfisk responds to changes in customer
behavior with a strategy focused on lifecycle services, customer-centric innovation, and our sustainability commitment.
With our value proposition and strategic priority to lead with innovation and sustainable products, we add value beyond the
machine and deliver cleaning solutions that blend into operations while integrating digital services, collectively increasing
the value of clean. We leverage strengths from our quality-focused brand and our wide product portfolio range with broad
customer access. We scale benefits due to our size and geographical coverage.
2 Economic and
political instability		 Adverse and unstable economic conditions including risks of global geopolitical conflicts may negatively impact our
financial position by increasing cost and decreasing demand for Nilfisk products affecting sales negatively. Meanwhile,
major social and political instability and changes may disrupt both the cleaning industry and our business.		 We closely monitor activity in our markets and the global economic situation to be able to respond in a timely manner
to any adverse developments. We also mitigate possible negative macroeconomic changes by hedging and maintaining
variability in our cost base as well as establishing a certain degree of flexible production footprint.
3 Cyber and
IT security		 Nilfisk's information technology systems are subject to risk of damage or interruption from power outages, computer and
telecommunications failures, malware, catastrophic events, and user errors. Errors made due to lack of user awareness
or deliberate misuse, such as individual attempts to gain access to systems, are among the risks Nilfisk faces. Inadequate
management of changes to systems or inadequate service together with ineffective measures to deter, prevent, detect
and react to such attempts might expose Nilfisk to risks. In addition, Nilfisk is faced with the threat of security breaches
(viruses, ransomware, etc.) such as attempts to hack our information technology systems.		 We have implemented procedures and management processes to ensure the necessary availability of critical IT systems
and services. Furthermore, we have developed and actioned an IT security policy to prevent intentional damage to our
systems and limit access to critical data and systems. Finally, initiatives have been planned and implemented to secure
the digital business, strengthen the infrastructure platform, enhance IT services, and ensure recovery business continuity
plans.
4 Failure to
innovate		 Technological developments and improvements are key to remaining competitive in the markets. If one or more of the
Nilfisk competitors are able to develop and gain exclusive access to groundbreaking technologies, this could make it
difficult or increasingly costly for the Nilfisk Group to compete effectively.		 As a part of our strategy, we established a strong value proposition linked to strategic priorities and optimization
opportunities, among other things focused on customer-centric innovation and leading with sustainable products,
optimizing customer value while also ensuring technology enabled value creation. We consistently monitor customer
trends against preferred technologies and cooperate with leading technology partners and universities.
5 Data integrity,
quality and
privacy		 There is a risk of suboptimal decision-making, potential loss of business, financial losses, or reputational damage due to a
lack of accurate, reliable, timely and complete data.
Failure to protect data privacy and comply with legislation (GDPR) would also have a negative impact on our business
including possible legal penalties, loss of vendor or customer trust, and reputational damage.		 In addition to an ongoing assessment of our IT infrastructure and systems, several initiatives have been launched. These
initiatives include a master data improvement project, standardization of ERP systems (SAP), and standardization of
processes. The initiatives are progressing well.
To protect data privacy, a number of systems have been implemented, e.g. Workday, Salesforce.com, and Service Max.
The data in the systems is audited on a regular basis and employees have received adequate training in data management.

Sustainability Statements

62 General information

78 Environment

102 Social S1 Own workforce S2 Workers in the value chain S4 Consumers and end-users

122 Governance

General information

In this section, we outline our sustainability commitments and governance framework, including our Double Materiality Assessment (DMA) and a visual representation of Nilfisk's full value chain from a sustainability perspective. We also detail the foundational principles and methodologies guiding our efforts.

Following this, you will find dedicated sections for Environment, Social, and Governance. Each section covers topics identified through Nilfisk's DMA, including targets, disclosures, policies, actions, and their corresponding metrics.

Disclosing progress

At Nilfisk, we recognize and commit to addressing climate change and embracing sustainable development, including a commitment to human rights, labor rights, and good governance throughout our value chain.

The Sustainability Statements in Nilfisk's 2024 Annual Report represent our first sustainability report aligned with the Corporate Sustainability Reporting Directive (CSRD). Prior to this report, Nilfisk has published standalone sustainability reports since 2016. We published our first Double Materiality Assessment (DMA) in 2023 and revised it in 2024 to align with the updates to the European Sustainability Reporting Standards (ESRS).

Environment

We follow a science-based approach to sustainability reporting and have committed to decarbonizing our business across Scope 1, 2, and 3 with targets that are verified and approved by the Science Based Target initiative (SBTi). These targets are verified to a well-below 2.0°C trajectory, and our actual performance is on the 1.5°C target trajectory. Our current near-term targets do not align with the ESRS requirements on a 1.5°C aligned transition plan. Nilfisk is committed to meeting these requirements but has prioritized analyzing feasibility and understanding the in-depth details and consequences before committing to new targets.

We committed to the UN Global Compact in 2010, and have since then been disclosing our company's performance on its 10 Guiding Principles. Furthermore, we disclose our climate actions and achievements via CDP, an international non-profit organization, receiving an 'A-' in 2024. In addition to this, we reported on Water Security through CDP for the first time in 2024, receiving a score of 'B-'.

Social

We acknowledge that a diverse workforce and an inclusive culture make us stronger as a company. We promote diversity, equity, and inclusion, a commitment described in our Business Code of Conduct and in our Global Diversity, Equity, and Inclusion policy. Health and safety are paramount, encompassing both employee well-being and operational efficiency. That means we are committed to creating and upholding progressive health and safety standards that follow international trends and requirements, such as ISO 45001.

Governance

Our sustainability performance is assessed annually by several internationally-recognized organizations including EcoVadis. Furthermore, we submit to Nasdaq's ESG reporting platform and to Sedex to drive improvements in ethical and responsible business practices in global supply chains.

Nilfisk welcomes comments, suggestions, or questions to our sustainability performance. Please reach out to us on [email protected].

Nilfisk committed to the UN Global Compact in 2010 and has since been disclosing our company's performance on its 10 Guiding Principles.

2025

Nilfisk has received EcoVadis Gold for three consecutive years. EcoVadis is considered the world's largest provider of business sustainability ratings.

Nilfisk has set targets to reduce Scope 1, 2, and 3 greenhouse gas (GHG) emissions. Science-based targets

Nilfisk discloses its climate actions and achievements via CDP, a nonprofit environmental disclosure system. In 2024, we received an 'A-' score for the fifth consecutive year.

Nilfisk reports into Sedex, a global organization dedicated to driving improvements in ethical and responsible business practices in global supply chains. Member

Nilfisk reports into Nasdaq's ESG reporting platform and has been a certified Nasdaq ESG Transparency Partner since 2022.

reduce GHG emissions.

In 2024, Nilfisk achieved ISS's ESG score of C+ which marks us as an 'industry prime' company and thereby a sustainability leader in our industry.

63

Sustainability commitments

ESRS topics

Incentivizing target achievement

The Environment, Social, and Governance sections in this report outline the targets, policies, actions, and metrics for each topic, along with their corresponding Impacts, Risks, and Opportunities (IROs).

Nilfisk's sustainability commitments are
anchored in our integrated business strategy
and value proposition.		 Environmental Social Governance
We continuously align our sustainability commitments with
our annual Double Materiality Assessment (DMA). This way,
Nilfisk's DMA is a dynamic process that guides our targets		 mbition
A		 Science-based climate action as a compass
We want to lead with sustainable products and services
in order to deliver value to our customers and to all our
stakeholders		 Empowering people
We act to create fair, equal, healthy, diverse, and safe working
environments for all employees globally		 Responsible business conduct at the core
We are committed to promoting good governance and
integrity-centric behavior throughout the company.
on sustainability.
ESRS topics
For this year's Sustainability Statements, five topics have
been prioritized for Environment, three for Social, and one		 ESRS topics E1 Climate change
E2 Pollution
E3 Water
E4 Biodiversity
E5 Resource use and circular economy		 S1 Own workforce
S2 Workers in the value chain
S4 Consumers and end-users		 G1 Business conduct
for Governance. To the right is a presentation of Nilfisk's
sustainability commitments, prioritized topics for
Environment, Social, and Governance, and an overview		 Emissions Equal representation Sustainability governance
of selected targets.
Incentivizing target achievement
Our sustainability targets are integrated into the incentive
programs for the Nilfisk Leadership Team and for key
employees. The long-term bonus program assigns a 20%
weighting to Scope 3 greenhouse gas emissions reduction
in addition to financial targets. The short-term program		 Selected targets 35%
reduction of absolute Scope 1 and 2 GHG emissions by
2030, based on 2019
48%
reduction of Scope 3 GHG emissions intensity from the		 37.5%
of the underrepresented gender in the Board of
Directors by 2027
34%
of the underrepresented gender in top management by		 Gold
To sustain EcoVadis Gold in the annual EcoVadis
assessment
includes a 10% weighting for four selected sustainability
KPIs. Read more about our incentive programs in the
Remuneration Report and Financial Statements.		 use of sold product by 2030, based on 2021
Plastic		 2026 and equal representation by 2030 (40/60)
The Environment, Social, and Governance sections in this
report outline the targets, policies, actions, and metrics for		 1,280
tonnes recycled plastic to replace virgin plastic by 2028

Nilfisk is committed to fully integrating sustainability into processes and decisionmaking throughout the company. To support this, we have established a tailored sustainability governance structure to ensure seamless integration of sustainability.

Board of Directors

Oversight and governance of Nilfisk's sustainability ambitions are anchored with the Board of Directors and cascaded through the organization. They monitor and ensure progress towards our strategic priorities, covering sustainability and target achievement. Sustainability priorities are integral to the Board's decision-making, with annual updates on targets and progress.

Audit Committee

The Audit Committee oversees sustainability activities, ensuring compliance with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). This includes the annual approval of the Double Materiality Assessment (DMA) and Sustainability Statements. In 2024, they prepared for the CSRD, effective January 2024, through in-depth workshops and training sessions.

Nilfisk Leadership Team

The Nilfisk Leadership Team sets the strategic direction on sustainability, with functional heads responsible for implementing targets and actions. The team is involved in major decisions, monitors policies and targets, and approves actions to facilitate progress. Each sustainability topic and target is assigned to a relevant function to ensure due diligence in sustainability matters, with progress reported in quarterly meetings.

Sustainability Steering Committee

A Sustainability Committee, comprising two members with decision-making authority from the Nilfisk Leadership Team, has been appointed. It includes the EVP, CFO, and the EVP, Head of Marketing, Sustainability & Consumer Business, and oversees sustainability target setting, policy commitments, and compliance with CSRD and ESRS.

Progress and compliance reporting

As non-financial controlling matures, Nilfisk has established a Group ESG controlling function within Finance for compliance reviews and internal controls. The Sustainability Team reports progress on targets and supports strategic sustainability priorities, particularly environmental topics.

Other committees

In addition to the Sustainability Committee, the Quality and Environmental Management Committee, Product Compliance Committee, and the IT Security Committee oversee the development of Impacts, Risks, and Opportunities (IROs) as defined in the DMA. Our Enterprise Risk Management process also includes sustainability risk assessments.

E2  E3  E5

Read more

Read more about the Board of Directors, Nilfisk Leadership Team, and governance structure in the Corporate Governance section of the Management Review.

Double Materiality Assessment

The Double Materiality Assessment (DMA) has established the foundation for reporting on material sustainability-related Impacts, Risks, and Opportunities (IROs) in compliance with the CSRD reporting requirements.

The DMA considers both Nilfisk's impact on the environment and society as well as the financial impact of sustainabilityrelated topics on our company.

  • Impact materiality captures the inside-out perspective, and considers the scale, scope, irremediability, and likelihood of sustainability-related impacts on people and/or the environment.
  • Financial materiality focuses on the outside-in perspective and considers the financial significance of sustainability-related risks and opportunities and their likelihood.

Outcome

MR SS FS

The outcome of the DMA is presented in the illustration to the right. The results are aggregated by ESRS topic, showing 9 ESRS topics and 21 sub-topics assessed as material to Nilfisk from an impact and/or financial materiality perspective.

The identified environmental impacts and risks are closely linked to the manufacturing and use of our products, including water usage, emissions, resource flows, and substances of concern. Operating globally with an extensive supply chain impacts both Nilfisk's employees and workers in the value chain, as well as end-users of our cleaning machines from physical and data safety perspectives.

One strategic response to these IROs is renewing our product portfolio to offer more sustainable products. This includes refurbishing and upgrading existing products, as well as designing new, intentionally sustainable products.

Read more

The following pages contain:

  • An illustration of selected IROs in Nilfisk's value chain
  • A description of Nilfisk's DMA methodology and process
  • A list with descriptions of the material IROs resulting from the DMA.

Information on how Nilfisk responds to the effects of IROs, including related policies, actions, targets, and metrics can be found in the topical sections under Environment, Social, and Governance.

DMA topics

and/or end-users 19. Information-related impacts for consumers and/or end-users

at the start of their respective sections

Value chain

67 NILFISK ANNUAL REPORT 2024

MR SS FS

General basis for preparation

This section describes the applied reporting framework, principles for consolidation, as well as a description of key accounting estimates.

Basis for reporting

The Sustainability Statements included in this Annual Report cover the year 2024, in line with the Financial Statements.

Frameworks and data

The Sustainability Statements comply with the EU Corporate Sustainability Reporting Directive (CSRD) and the corresponding EU Sustainability Reporting Standards (ESRS) and with section 99a of the Danish Financial Statements Act. The Sustainability Statements also ensure compliance with the act's requirements under section 107d in the policy, actions, and targets sections for Diversity in section S1 – Own workforce.

All data points in the Environment, Social, and Governance sections have been assessed as material according to Nilfisk's Double Materiality Assessment (DMA).

Measurement basis

The accounting policies described in the individual sections are consistently applied during the financial year and for the comparative figures where relevant.

Principles of consolidation

Unless otherwise stated, the data in this report is consolidated according to the same principles as the financial statements. ESG data for Nilfisk's own operations includes consolidated data for the Nilfisk Group (Nilfisk) covering the parent company, Nilfisk Holding A/S, and entities controlled by Nilfisk Holding A/S. Data from associates are not included. See note 8.5 in the Financial Statements for an overview of Nilfisk Group companies.

The following subsidiaries are exempted from individual sustainability reporting pursuant to ESRS 2:5 (b)ii: Nilfisk A/S (Denmark) and Nilfisk Production Kft. (Hungary).

Value chain information

The DMA process described in the following pages includes impacts, risks, and opportunities related to our upstream and downstream value chain. Nilfisk's policies, actions, and targets for the upstream and downstream value chain is described in the individual Environment, Social, and Governance sections.

Comparative information

Nilfisk applies the transitional provision for presenting comparative information. Comparative figures are reported for selected previously reported data points previously reported in line with ESRS. Nilfisk assesses the need for restatements based on materiality. During 2024, we focused on enhancing data quality and accuracy, leading to updated input assumptions. Consequently, the following main

changes to 2023 figures were made in accordance with our restatement policy:

  • Changes to assumptions at our site in Poland: Fuel consumption from natural gas decreased by 6%, resulting in a total energy consumption reduction of 2%. This primarily led to a 2% decrease in Scope 1 emissions.
  • Improved sales database: Scope 3, category 11 emissions and corresponding emissions intensity increased by 6%.
  • Reclassification of energy origin: Fossil energy decreased by 3,097 MWh, nuclear energy increased by 1,240 MWh, and renewable energy increased by 1,835 MWh. All the restated numbers can be found in the Metrics section for E1-5 and E1-6.

Targets and metrics

As part of Nilfisk's target setting, internal stakeholders have been used as proxies for external key stakeholders and the outcome will be shared with these key stakeholders. Individual accounting policies and methodologies of targets and metrics are described in the individual Environment, Social, and Governance sections.

Key accounting estimates, judgments, and uncertainties

When preparing sustainability metrics, reasonable estimates and judgments are essential. The Executive Management Board has made reasonable estimates and judgments related to selected metrics based on experience, assumptions, and the evolving ESG reporting landscape. These estimates and judgments are reassessed regularly. Nilfisk uses extrapolations as a method for estimating data

when full data coverage for Nilfisk Group is unavailable. Extrapolations are calculated using available data, which is extended to complete Nilfisk Group data based on headcounts. Other estimates and judgments are used where relevant. Nilfisk has defined specific ranges to indicate the use of estimates within the reported metrics, as follows:

  • Low: <30 %
  • Medium: 30 % < 70%
  • High: >70%

Where estimates and judgments have been applied, this is clearly stated in the individual accounting policies.

Incorporation by reference

Nilfisk has applied the principle of "incorporation by reference' for certain disclosures from ESRS 2 into the Management Review section and Remuneration Report for better readability. All ESRS data points reported outside the Sustainability Statements are clearly marked with a and are covered by limited assurance from our external auditor. Details on ESRS disclosure locations within the annual report can be found in the ESRS disclosure overview on page 128.

Option to omit specific information and phase-in reliefs

Nilfisk has not used the option to omit specific information related to intellectual property, know-how, or results of innovation. Furthermore, Nilfisk has chosen to use certain phase-in options. Read more on which phase-in options have been used in the ESRS disclosure overview on page 128.

The process towards Double Materiality Assessment

Double Materiality Assessment methodology

This section outlines the process for identifying material Impacts, Risks, and Opportunities (IROs). It details the methodology and results of the resilience analysis and outlines the process and outcome of engaging stakeholders.

Scoping

MR SS FS

The Double Materiality Assessment (DMA) covers Nilfisk's entire value chain, including upstream, downstream, and own operations, in line with ESRS requirements.

The upstream value chain includes raw material extraction and suppliers. The downstream value chain covers product resale, use, and end-of-life, including refurbishment and resale activities. Nilfisk's operations encompass primary activities such as inbound logistics, operations, outbound logistics, marketing, sales, and service, as well as support activities such as finance, infrastructure, technological development, HR management, and sourcing.

To ensure the inclusion of key stakeholders along the value chain, Nilfisk conducted a comprehensive mapping exercise. Key groups identified include customers and end-users, employees, value chain workers, local communities, and the global population.

Stakeholder engagement and topics identification

Engaging stakeholders with due diligence is a fundamental pillar in the DMA process. Nilfisk conducted a

comprehensive workshop with internal subject-matter experts (SMEs) from various business lines and regions. The topics discussed were used to create a longlist of IROs, which were cross-checked with ESRS sub-topics and subsub-topics. All IROs were assessed on a gross basis, without considering mitigation actions.

Environment-related IROs

As part of identifying material climate-related IROs, Nilfisk has recognized both physical and transition climate-related risks, detailed in the Resilience Analysis section on the following pages. To screen sites and assets across the value chain, Nilfisk gathered information from forums, site reports, and stakeholder interviews to identify IROs related to pollution, water and marine resources, biodiversity, and resource use and circular economy.

According to SMEs, no significant biodiversity-related risks have been identified, and Nilfisk has no sites near biodiversity-sensitive areas with negative impacts. Only indirect consultations with affected communities were conducted.

Governance-related IROs

Governance-related IROs are identified based on inputs from the Compliance team, leveraging their expertise and internal policies. The assessment involves engaging relevant SMEs and evaluating regulations such as the Danish Recommendations on Corporate Governance, the EU Whistleblower Directive, the UK Bribery Act 2019, the Foreign Corrupt Practices Act, and current and upcoming EU anti-corruption legislation, as well as the OECD Guidelines on Multinational Enterprises.

Financial magnitude

Gross list of IROs

Additional relevant ESRS topics and entity-specific topics not covered in the workshop, resilience analysis, and climate-related screenings were subsequently added by SMEs, resulting in a gross list of Nilfisk IROs. For each IRO, a stakeholder and SME were identified. External stakeholders' views were incorporated through SMEs acting as proxies, such as Customer Care, HR, Regulatory Affairs, and Legal. Nilfisk's continuous engagement with stakeholders provides a solid basis for assessing the most material IROs and stakeholders are consulted throughout the DMA process. Read more in the Stakeholder Engagement section.

Impact, risks, and opportunities assessment

Based on the gross list of IROs, separate scoring has been conducted from both an impact and a financial risk and opportunity perspective. The scoring was collaboratively performed by ESG controlling, Sustainability, and SMEs acting as proxies for external stakeholders.

Time horizon

Each IRO has a specified time horizon, which defines the period within which the IRO is expected to materialize. The time horizon parameter is split into three categories, as defined by ESRS 1:

  • Short-term: one year, aligned with the period adopted as the reporting period in the financial statements
  • Medium-term: from one to five years
  • Long-term time: more than five years

Impact assessment

The scoring of impacts is based on the severity of impacts for the scale, scope, irremediable character, and likelihood which are each scored low, medium, or high. See the table on the right for further details.

Financial risk and opportunity assessment

Financial risks or opportunities derived from assessed impacts, and independent sustainability-related risks and opportunities, are considered in the financial materiality assessment. The scoring is based on the potential financial magnitude and likelihood of occurrence which are each scored low, medium, or high. The nature and magnitude of financial effects in different scenarios were assessed based on assumptions and input parameters from subject-matter experts. See the table on the right for further details.

Thresholds

If an IRO receives an average score of medium or higher, it is considered material. Consequently, the associated ESRS standard, along with all relevant disclosure requirements and data points, are also deemed material.

If no IROs related to an ESRS topic are assessed as material, the ESRS standard and all associated disclosure requirements are considered immaterial for reporting purposes. Nilfisk has concluded that ESRS S3 - Affected Communities is immaterial.

Stakeholder verification

After finalizing the scores for all IROs, a consolidated overview of the outcome was presented to and discussed with the identified SMEs for each respective IRO. Adjustments were made if deemed necessary.

DMA finalization

A consolidated list of ESRS topics, sub-topics, and subsub-topics representing the outcome and conclusion of the DMA has been presented to and approved by the Nilfisk Leadership Team and Audit Committee. The DMA resulted in a final list of 9 ESRS topics and 21 sub-topics. The outcome of the IROs are detailed on page 74.

Impact assessment

Scale

Scope

Defines the magnitude of an impact on people or the environment, where the salient human rights principles give precedence to those human rights that are at risk of the most severe negative impacts on people and are therefore per definition scored 'high'.

Defines how widespread the impact is, based on individuals affected or the extent of the environmental damage. Nilfisk has defined parameters such as the percentage of sites in scope, employees affected, suppliers spend covered.

Irremediable Describes the extent to which the impact can be remediated. Nilfisk has assessed the level of difficulty in remediating the negative impact in terms of cost and time horizon.

For potential impact categories, likelihood was added as an additional scoring parameter. However, human rights apply precedence over likelihood, meaning that likelihood is not considered for human right impact categories.

Financial risks and opportunities assessment

The potential financial effects assess the impact on EBIT if a risk or opportunity materializes. These were divided into:

  • Tangible financial effects: Actual financial risks that had occurred and were measurable.
  • Intangible financial effects: Potential financial impacts based on assumptions, including reputation, operations, employee retention, and regulatory effects.

Likelihood The likelihood of occurrence is assessed based on past occurrences or awareness of future occurrences (e.g. knowledge of future legislation).

impact)

character

Resilience analysis

Nilfisk has conducted a resilience analysis, informed specifically by our climate risk assessment.

A resilience analysis evaluates Nilfisk's capacity to handle environmental changes, split into physical and transitional risks. Physical risks include site-specific climate risks, value chain sector risks, and downstream value chain effects. Transitional risks encompass market, policy, reputation, and technology risks. The resilience analysis confirmed known risks and provided new insights. By categorizing and adding timelines to our climate risk analysis and using recognized climate risk data sources, we improved our outlook.

The findings of the resilience analysis have informed Nilfisk's Double Materiality Assessment (DMA). Our material Impacts, Risks, and Opportunities (IROs) related to climate change are linked to climate change mitigation, adaptation, and energy.

Inputs to the resilience analysis in 2024 came from our climate risk assessment, business model and strategic direction, current and planned mitigating activities, and existing policies. Climate scenarios were integrated via the climate risk assessment results, with each topic evaluated based on three time horizons. Nilfisk identified material climate-related risks as both physical and transitional, covering our upstream value chain, sites, and global activities.

Key resilience analysis outcomes

Resilience to climate physical risks Resilience to climate transition risks Nilfisk is exposed to both physical risks at sites and in our value chain.

Sites: Nilfisk's highest physical risk is site exposure to extreme weather events such as natural disasters or extreme heat. More than half of the sites in scope of the assessment have a high to extreme climate risk in the current outlook and consequently in future time horizons and low and high emissions scenarios. To enhance resilience, Nilfisk has initiated actions such as a dual production strategy, adapted insurance, and emergency plans prioritizing employee wellbeing. By 2025, climate risk will be integrated into Nilfisk's real estate policy and enterprise risk management process.

Value chain: In 2024, Nilfisk faced low-medium physical risks in its upstream value chain. Post-COVID-19 measures, such as dual sourcing, have enhanced resilience to supply chain disruptions. By 2050, the sectors "Container and Packaging" and "Automobile components" have a mediumhigh risk of being impacted by climate hazards in the high-emissions scenario.

Nilfisk faces market, policy, technology, and reputational risks.

Market risk: A high risk is identified from the scenarios considering committed or current policies. In the upstream value chain, the risk is associated with disruptions on critical materials due to adverse effects from climate change. To our own operations, these scenarios indicate rising production costs. In the downstream value chain, all scenarios show high risks from market uncertainties, including timing and effect of demand for more sustainable products.

Policy risk: Nilfisk's current operations comply with existing climate political action, putting us at low risk in a scenario where climate policies remain the same. An aggressive future policy scenario may require further adaptation of Nilfisk's operating model as our upstream and downstream value chain will be impacted by increasing emissions taxes. Nilfisk is preparing for this scenario by developing low-carbon products which will mitigate the impact of these taxes.

Technology risk: Based on exposure to EU taxonomy and low-carbon transitioning of products, overall technology risk exposure was found to be low for Nilfisk. Our strong in-house technical capabilities, strategic partnerships, and a diversified development roadmap contribute to this. However, long-term risks include exposure to new technological disruptions.

Reputational risk: High risks are associated with scenarios where policies are aggressively implemented to achieve net-zero emissions by 2050. In such scenarios, heightened stakeholder scrutiny increases the risk of reputational effects materializing for Nilfisk. To mitigate this risk, Nilfisk continuously monitors customer requirements and incorporates low-carbon products into its product roadmap.

The table below summarizes the information, sources, and scenarios used in our Climate Risk Assessment as per the ESRS guidelines

Applied Climate Risk Assessment methodology, sources, and scenarios

Category Purpose Assessment method and source Scenarios Time horizons Focus
Climate-related
physical risks		 Own operations Site-specific physical
climate risks		 21 Risk platform, Münich-Re's
methodology		 RCP8.5, RCP4.5,
RCP2.6		 Up to 2100 All sites with a Total Sum Insured
(TSI) above 2,000 EUR (50 sites)
Upstream value chain Risk assessment on Nilfisk's value chain
sectors and suppliers		 S&P Global Sustainable1 Physical
Risk Scores		 SSP5-8.5,
SSP1-2.6		 2030, 2050 Value chain sectors and
suppliers
Downstream value chain Immaterial impact N/A N/A
N/A		 Customer and reseller physical
risks
Climate-related
transition
risks and
opportunities		 Market risks and
opportunities		 Evaluation of market impacts due to
policy implementation and customer
requirements		 IEA scenarios STEPS, APS,
NZE		 Short, medium,
long-term		 Upstream, operational,
downstream segments
Policy risks and
opportunities		 Projects future
carbon price impacts		 S&P carbon
pricing risk assessment		 STEPS APS,
NZE		 2030, 2040,
2050		 Revenue, expenditure, emissions
Reputational risk Potential image impacts Regulatory non-compliance,
stakeholder pressures		 STEPS, APS,
NZE		 N/A Upstream, operational,
downstream risks
Technology risks and
opportunities		 Determine overall technology risk EU Taxonomy activities,
CAPEX/R&D		 N/A N/A Meeting low-carbon thresholds

Stakeholder engagement

Interests and views of stakeholders

At Nilfisk, we prioritize active engagement with our extensive value chain and diverse stakeholders. With a rich history rooted in knowledge and engineering, we understand that the best insights and milestones are achieved through collaboration. Whether it's understanding end-user needs, preserving human rights, or exploring innovative materials, we are committed to continuous and dynamic stakeholder engagement through both formal and informal activities.

Through dialogue, we strive to understand the positions, concerns, and expectations of our stakeholders. Direct and indirect dialogue informs our sustainability and business efforts, projects, and processes, allowing us to align interests and views. The insights gained inform our Double Materiality Assessment (DMA) with internal SMEs acting as proxies for our stakeholders.

We include views and interests of affected stakeholders regarding our sustainability-related Impacts, Risks, and Opportunities (IROs) in our established business processes. The Sustainability Steering Committee is regularly informed of new insights on the matter.

Key
stakeholders		 Type of engagement and
collection of insights		 Purpose of engagements Outcomes from engagements Value
chain		 ESRS
topics		 Internal SME
Customers
(B2B & B2C)		 •
Daily engagement with our customers
•
Customer insights-based product
development through co-creation
process in product design for selected
design processes		 •
Monitor and understand market
movements and customer needs
•
Ensure value offerings match needs
and requirements		 •
Product and service improvements
•
Innovative, high-quality sustainable
products and services that help our
customers achieve their business
and sustainability goals		 DO E1, E2,
E3, E5,
S4		 •
Customer care
•
Sales teams
•
Customer
insights
Employees •
Bi-annual global engagement
survey and annual development
conversations
•
Health & safety processes
•
Whistleblower processes		 •
Respecting human rights and diversity,
equity, and inclusion
•
Learning views and needs of
employees and aligning improvement
and action plans with employee inputs
•
Providing a safe and healthy work
environment		 •
Employee retention
•
Meaningful work and good
development opportunities		 OO S1 •
HR partners
•
EHS Manager
•
Unions and
workers
councils
Investors and
analysts		 •
External ESG ratings
•
Investor calls
•
Periodic investor updates
•
Capital markets days		 •
Understanding views and expectations
on ESG performance
•
Respond to ESG rating firms' requests
and questionnaires
•
Attracting responsible investors		 •
Data available to investor queries
•
Transparency on Nilfisk's
ESG performance to industry
benchmark		 OO E1, E2,
E3, E5,
S1, S2,
S4, G1		 •
Investor
relations
Suppliers and
workers in the
value chain		 •
Daily engagement on product and
process dialogues
•
Supplier due diligence and
questionnaires
•
Human rights assessments via
screening and on-site assessments		 •
Ensure compliance with Nilfisk's Code
of Conduct
•
Co-creation processes with suppliers
•
Ensuring available whistleblower
process
•
Protect human and labor rights of
workers in high-risk areas		 •
Informed selection of suppliers
•
Partner on solutions for customers
and end users		 UP,
DO		 E4, E5,
S2, S4		 •
Supply chain
•
Legal
•
Sustainability
team
•
EHS Manager
Local
communities		 •
Local employee activities
•
Donations and partnerships for
community benefits		 •
Providing economic and social value,
while minimizing environmental
impact		 •
Local donations and employee
events
•
Employee retention and
ambassador effect		 UP,
OO,
DO		 E1, E2,
E3, E5,
S1, S2,
S4		 •
Sustainability
team
•
Regulatory
affairs
Interest
organizations,
incl. civic,
non-profit
organizations,
and
governments		 •
Thought leadership and sharing
experiences on ESG
•
Participation in industry work groups
and forums
•
Collaboration with universities
•
Publication of laws, regulations, and
policies		 •
Access to tools provided / Guidance
on best practice
•
Sparring and knowledge sharing with
peers
•
Research to develop innovative
solutions
•
Understand societal concerns and
help solve societal issues		 •
Ensuring compliance and meeting
market standards
•
ESRS aligned Sustainability
Statements to increase
transparency and industry
comparability
•
Responsibility and accountability
towards material issues, and
industry leadership on topics of
highest impact and leverage		 OO E1, E2,
E3, E5,
S1, S2,
S4, G1		 •
Legal
•
Sustainability
team
•
Regulatory
affairs
•
R&D team

Material impacts, risks, and opportunities

The tables below list the sustainability-related Impacts, Risks, and Opportunities (IROs) identified in our Double Materiality Assessment (DMA). Each ESRS topic, including sub- and sub-sub-topics such as climate change mitigation, working hours, and resource use, is presented with a brief description of the IROs. The tables indicate the effect of the

IRO in the value chain: own operations (OO), downstream (DO), or upstream (UP), whether impacts are positive or negative, actual or potential, and the related time horizon.

More details on our response to these IROs are provided in the topical sections under Environment, Social, and Governance.

Environmental IRO Impact, Risk,
or Opportunity		 Value
chain*		 Time horizon
of impact		 Description Disclosure
requirement
E1 Climate change
1. Climate change mitigation
Climate change mitigation GHG emissions
(Scope 1, 2, and 3)		 Actual negative impact OO, DO Short GHG emissions from own operations and the use-phase of products (Scope 1,2, and 3 emissions). E1-1, E1-2, E1-3,
E1-4, E1-6
Risk OO There is a financial risk related to implementation of and improvements to operations to adhere with new regulatory and
customers' requirements related to GHG emissions.
Opportunity OO Opportunity to increase sales and expand market share from developing documented low-carbon products.
2. Climate change adaptation
Climate change adaptation Natural disasters Risk OO Nilfisk operates in regions vulnerable to natural disasters, including tornadoes and hurricanes, posing inherent financial risks.
In 2024, Nilfisk's site in Fort Pierce, Florida was hit by Hurricane Milton leading to an expected revenue loss of approximately
7 mEUR associated with this event as well as costs related to the destruction of property (before insurance payouts).		 E1-2, E1-3, E1-4
3. Energy
Energy Fossil energy Actual negative impact OO, DO Short Use of fossil energy during operations and from Nilfisk products contributes to deplete energy sources, which might prevent
future generations from accessing them, and contributes to climate change.		 E1-2, E1-3, E1-4, E1-5
E2 Pollution
4. Substances of concern
5. Substances of very high concern
Substances of concern,
Substances of very high
concern		 Pollution from substances
of concern and very high
concern		 Actual negative impact OO, DO Short Several of Nilfisk's products contain substances of concern and very high concern, including PFAS (Per- and Polyfluoroalkyl
Substances), that cause pollution during production, as well as when such products are disposed of. If not handled correctly,
the substances used in the production and thus contained in the products may pollute surroundings and negatively affect
people and the environment.		 E2-1, E2-2, E2-3, E2-5,
E2 (entity-specific)
Risk OO Several of Nilfisk's products contain substances that might require volume tracking. Due to the complexity of tracking volumes
of substances and the regulatory requirements related to such tracking substances of concern and very high concern, there is
an inherent financial risk of fines for non-compliance.
PFAS (entity-specific) Risk OO Due to the concerns about PFAS, the use of PFAS will be banned in the US and EU before 2030. Furthermore, Nilfisk is being
met by requests from customers to track, or even ban, PFAS in products. Consequently, there is a risk that Nilfisk's products will
not meet regulatory as well as customers' requirements, which could potentially affect Nilfisk's sales and financial position.		 Entity-specific
Environmental – continued IRO Impact, Risk,
or Opportunity		 Value
chain*		 Time horizon
of impact		 Description Disclosure
requirement
E2 Pollution – continued
6. Pollution of air, water, and soil (entity-specific)
Pollution of air, water,
and soil		 Pollution from end-of-life
products (entity-specific)		 Actual negative impact DO Short Several of Nilfisk's products might pollute air, water, and soil, if such products are not handled correctly at end-of-life.
Mismanagement might lead to pollution, which might negatively affect people and the environment.		 E2-1, E2-2, E2-3, E2-4, E2
(entity-specific)
E3 Water and marine resources
7. Water
Water Water consumption at sites Actual negative impact OO Short Use of water to produce our products at our production plant, impacting the availability of water for other usage. E3-1, E3-2, E3-4
Water consumption
from product usage (entity
specific)		 Actual negative impact DO Short Use of water to use our products contributes to water scarcity in some regions of the world, especially in the medium and long
term when water shortages will become more common.		 E3-1, E3-2, E3
(entity-specific)
E4 Biodiversity
8. Climate change and pollution
Climate change and pollution Direct impact drivers
of biodiversity loss		 Actual negative impact UP, OO, DO Short Climate change and pollution are material impacts to Nilfisk that contribute negatively as direct impact drivers to the
acceleration of biodiversity loss.		 E1, E2
E5 Circular Economy
9. Resource inflows, including resource use
Resource inflows, including
resource use		 Scarcity of materials Actual negative impact UP, DO Short Nilfisk contributes to increasing the scarcity of materials by consuming components such as plastics, electronics and some
metals, which might make future generations unable to access them.
There is an inherent operational risk from scarcity of materials as it would require research and validation of alternative raw		 E5-1, E5-2, E5-3, E5-4
Risk OO material for sustaining production.
10. Resource outflows related to products and services
Resource outflows related to
products and services		 Repairability and recyclability
of products and components		 Actual negative impact DO Short Nilfisk's products cannot be fully recycled or repaired because of design and logistical challenges, so Nilfisk's value chain
contributes to resource depletion by not optimizing the recyclability and repairability of all its materials.
Packaging waste Actual negative impact OO, DO Short Nilfisk's packaging waste can end up polluting air, water, and soil. E5-1, E5-2, E5-5
EU sustainable
product initiative		 Risk OO The EU sustainable product initiative (SPI) will require product sustainability data in a future digital product passport. There is an
inherent risk from non-compliance and negative reputational effects.
11. Waste
Waste Waste management
at Nilfisk sites		 Actual negative impact OO Short If not properly managed, waste from Nilfisk sites can cause local pollution. Waste from upstream and downstream value chain
is covered in pollution.		 E5-1, E5-2
Risk OO There is an inherent risk of fines from non-compliance with regulatory requirements related to waste.
Social IRO Impact, Risk,
or Opportunity		 Value
chain*		 Time horizon
of impact		 Description Disclosure
requirement
S1 Own workforce
12. Working conditions
Adequate wages, Social dialogue,
Collective bargaining, Freedom
of association, Working time		 Other working conditions Risk OO There is an inherent financial risk from inadequate working conditions such as insufficient wages, lack of social dialogue,
collective bargaining, freedom of association, and high workload. Factors that could lead to higher employee turnover and lower
productivity.		 S1-1, S1-4, S1-8, S1-10,
S1-11, S1-15
Health and safety Health and safety relating
to workplace accidents		 Actual and potential
negative impact		 OO Short Health and safety issues relating to workplace accidents and risks of fires because of the use of flammable material such as
chemicals, lithium-ion batteries etc. can cause negative impacts for Nilfisk's employees.		 S1-1, S1-4, S1-5, S1-14
Risk OO There is an inherent financial risk from employees being exposed to substances of concern and very high concern leading to
increased sick days and productivity.
13. Equal treatment and opportunities for all
Diversity Diversity, social equity, Actual positive impact DO Short Promoting diversity drives innovation and fosters a culture of inclusion where everyone in the workplace is valued. S1-1, S1-4, S1-6, S1-7,
S1-9, S1-12, S1-13,
S1-16, S1-17
and equal treatment Risk OO There is an inherent financial risk and reputational risk from lack of compliance with regulatory requirements related to reporting
on gender diversity in top management.
Gender equality and equal pay for Gender pay gap
Equal treatment		 Actual negative impact OO Short Nilfisk has identified a gender pay gap and is taking action to ensure equal pay.
work of equal value Risk OO There is an inherent financial risk from existing gender pay gap related to employee retention and lower productivity.
Measures against violence and
harassment in the workplace		 Actual negative impact OO Short Nilfisk has cases of employees experiencing harassment in the workplace.
Risk OO There is an inherent financial risk of fines and reputational risk from lack of measures against violence and harassment.
Training and skills development Equal opportunities Actual positive impact OO Short Ensuring career progression through training and skills development contributes to employee development and business
growth.
Risk OO There is an inherent financial risk from insufficient investment in people development related to employee retention, and
performance.
14. Other work-related rights
Privacy GDPR compliance
of own workforce		 Risk OO There is an inherent financial risk of fines from non-compliance with regulatory requirements related to GDPR where it concerns
Nilfisk's own employees.		 S1-1, S1-4
S2 Value Chain Workers
15. Working conditions
Health and safety Health and safety risks
at direct suppliers		 Potential negative
impact		 UP Short Nilfisk's value chain workers at direct suppliers are subject to health and safety risks, which can lead to accidents. S2-1, S2-4, S2-5
Adequate wages, Collective
bargaining, freedom of		 Value chain
workers' rights		 Potential negative
impact		 UP Short There is a potential impact that Nilfisk's value chain workers' rights related to adequate wages, collective bargaining, freedom of
association, and working time are not respected in the upstream value chain.
association, secure employment,
working time, health and safety		 Risk UP There is an inherent financial risk from value chain workers' rights not being respected that could have reputational and
operational effect.		 S2-1, S2-4, S2-5
Social – continued IRO Impact, Risk,
or Opportunity		 Value
chain*		 Time horizon
of impact		 Description Disclosure
requirement
S2 Value Chain Workers – continued
16. Equal treatment and opportunities for all
Gender equality and equal pay
for work of equal value		 Gender inequalities Potential negative
impact		 UP Short Nilfisk has suppliers in countries where there are strong gender inequalities. S2-1, S2-4, S2-5
Measures against violence and
harassment in the workplace		 Harassment and
violence at suppliers		 Potential negative
impact		 UP Short Nilfisk operates with suppliers that may not take any action against harassment or violence at work. S2-1, S2-4, S2-5
17. Other work-related rights
Privacy GDPR privacy of
value chain workers		 Risk UP Short There is an inherent risk of fines from non-compliance with regulatory requirements related to GDPR for workers in the value chain. S2-1, S2-4
S4 Consumers and end-users
18. Personal safety of consumers and/or end-users
Security of a person,
Health and safety		 Security of end-users Potential negative
impact		 DO Short Safety of Nilfisk's consumers is at the core of Nilfisk's operations and is a key element in business processes to ensure business
integrity. There is a potential risk that accidents could occur from the use of Nilfisk's machines.		 S4-1, S4-4, S4-5
19. Information-related impacts for consumers and/or end-users
Privacy IT security of
Nilfisk's machines		 Risk DO Nilfisk's autonomous and digital machines collect and map data. This introduces risks related to compliance with the privacy
rights of consumers, for example when using AI to make sure machines do not come into contact with people passing by. There
is an inherent risk of not meeting customer requirements as well as a risk of data breaches.		 S4-1, S4-4
GDPR privacy of
customers and end-users		 Risk DO There is an inherent risk of fines from non-compliance with regulatory requirements related to GDPR for customers'
personal information.		 S4-1, S4-4, S4-5
Governance IRO Impact, Risk,
or Opportunity		 Value
chain*		 Time horizon
of impact		 Description Disclosure
requirement
G1 Business conduct
20. Corruption and bribery
Incidents and prevention and
detection including training		 Corruption and
bribery incidents		 Risk OO There is an inherent risk of fines and negative reputational effects from corruption and bribery incidents. G1-1, G1-3, G1-4
21. Protection of whistleblowers
Protection of whistleblowers Whistleblowers Risk UP, OO, DO There is an inherent risk of fines and negative reputational effects if Nilfisk fails to protect whistleblowers or breaching GDPR rules. G1-1

MR SS FS

Environment

79 E1 Climate change

87 E2 Pollution

91 E3 Water and marine resources

91 Policies and actions • Water consumption from product range

93 E5 Resource use and circular economy

Water scarcity is a pressing global issue, and at Nilfisk, we are committed to addressing this through innovation. Our latest innovation in advanced cleaning equipment is designed to guide customers towards mindful water consumption in their cleaning tasks. The SC550 walk-behind scrubber dryer exemplifies this commitment, offering up to 40% water savings compared to similar machines.

E1 ESRS

Climate change

Nilfisk is committed to reducing its climate footprint through a science-based approach. Climate change presents both challenges and opportunities for our business and we aim to address the negative impacts while creating value for our stakeholders.

Targets

Climate change mitigation

Nilfisk has two GHG emissions reduction targets for Scope 1, 2, and 3 verified and approved by SBTi.

35% reduction in Scope 1 and 2 GHG emissions

Progress towards 2030 target

48% reduction in Scope 3 GHG emissions intensity (category 11, use of sold products)

Progress towards 2030 target

2030
 2024
 2023 2022 2021
48% 39% 28% 13%

2030 absolute and intensity targets to reduce GHG emissions

GHG emissions targets are aligned with a well-below 2°C trajectory. The illustrations below show the 2030 absolute and emissions intensity to reach to achieve Nilfisk's current target, as well as the 1.5°C aligned target values.

Scope 1 and 2

Pathway to reduce Scope 1 and 2 emissions to meet SBTi approved 2030 target

  • Nilfisk's trajectory
  • Well-below 2°C trajectory (Nilfisk's target)
  • 1.5°C aligned trajectory

Scope 3 – Use of sold products

Pathway to reduce Scope 3 emissions intensity to meet SBTi approved 2030 target

79 NILFISK ANNUAL REPORT 2024

Levers to reduce GHG emissions from Nilfisk's own operations

Scope 1 and 2

Four decarbonization levers have been identified to reduce our Scope 1 and 2 GHG emissions: switch to electric vehicles, implement energy efficiency activities at sites, deploy the use of renewable electricity at sites, and grid decarbonization.

Levers to reduce GHG emissions from use of products

Scope 3, category 11 – Use of sold products

Three main levers have been identified to reduce Scope 3 GHG emissions: energy efficiency improvements in products, switch of energy source used in products, and grid decarbonization.

Policies and actions

Transition plan for climate change mitigation

At Nilfisk, we believe in committing to long-term climate change mitigation. We have identified and quantified the effect of different levers to achieve our climate targets aligned with a well-below 2°C trajectory, and plan to adopt and communicate a transition plan towards a 1.5°C target in 2025. In 2024, we conducted a Net-Zero study. While it has not been formalized in a budgeted and time-bound ESRS aligned transition plan, we acknowledge the importance of this study.

GHG emissions across the value chain

Scope 3, Category 11 – Use of Sold Products

  • Scope 3, Category 1 Purchased goods and services
  • Scope 3, Other categories (based on 2023 data)
  • Scope 1 and 2

Emissions per scope and category

Nilfisk's Scope 1 and 2 emissions constitute just 1% of our total GHG emissions, primarily from manufacturing sites and service vehicles. Despite the low share, emissions in Scope 1 and 2 are important, as we directly control them.

Scope 3, making up 99% of our total GHG emissions, stems from category 11 'Use of sold products', constituting 78% of total emissions. Consequently, our SBTi-approved reduction target in Scope 3 focuses on this category. 'Purchased goods and services' comprise the second biggest category in Scope 3 with 18% of total emissions. Combined, the other categories make up 3%.

Scope 1 and 2

Nilfisk has identified four decarbonization levers to reach our SBTi target: Switch to electric vehicles in our fleet, implement energy efficiency activities, and deploy the use of renewable electricity at our sites, in addition to the general decarbonization of the grid. As indicated in the graph detailing the breakdown of Nilfisk's GHG emissions, our Scope 1 and 2 emissions form only 1% of our total emissions.

Scope 3 – Use of sold products

Nilfisk has identified three main levers to mitigate climate change in the product use phase to reach our SBTi target: energy efficiency activities, changing the energy source used in products, and grid decarbonization. We are integrating actions towards these levers in innovation, product development, budgeting, and strategic processes.

Climate change mitigation and energy

Material IRO

Nilfisk has identified an actual negative impact on the environment from our Greenhouse Gas emissions, the use of energy from our own operations, and from the use phase of our products. Associated with this impact is a financial risk regarding adherence to regulations and customer expectations, but also an opportunity to increase sales and market share from a maturing market demand for climate and energy efficient products.

We have developed policies, actions, targets, and strong governance structures to support Nilfisk's progression on mitigating climate change and increasing energy efficiency at both corporate and product level. We have actions in place to advance this opportunity.

POLICIES

Climate Change and Energy policy

Nilfisk has a Climate Change and Energy policy addressing:

  • Climate change mitigation: Defines the ambition to reduce Scope 1, 2, and 3 greenhouse gas (GHG) emissions, targets,
  • Energy efficiency: Outlines ambitions and activities for site and product energy efficiency, accounting principles, and governance. It will be updated in 2025 to include actions for leveraging the commercial opportunity from transparent and documented claims on new low-carbon products.

governance, activities, and GHG accounting approach.

• Renewable energy deployment: Sets the ambition to deploy renewable energy and prioritizes renewable energy options.

This policy is owned by the EVP, Head of Marketing, Sustainability & Consumer Business. It undergoes regular reviews and applies to Nilfisk Group.

We monitor our Scope 1, 2, and 3 emissions on a monthly basis and report them to the Nilfisk Leadership Team quarterly.

Vehicle policy

Nilfisk has a Global Vehicle policy, co-owned by the EVP, Head of Marketing, Sustainability & Consumer Business and the EVP, Head of People, Organization & Culture. Reviewed bi-annually, it sets guidelines to lower fleet emissions with region-specific electric vehicle targets based on market maturity. This supports the overall reduction target for Scope 1 and 2 emissions.

ACTIONS

Scope 1 and 2

Nilfisk is taking action on three categories of decarbonization levers: energy efficiency, use of renewable energy, and switch of energy source. The three levers all refer to actions within our fleet or at our sites.

Electric vehicles

In 2024, Nilfisk increased the number of electric vehicles in our fleet from 64 to 140 cars, achieving a GHG emissions reduction of 280 tonnes CO2 eq. Replacing fuel with electricity lowers fleet emissions, supporting our Scope 1 and 2 targets.

In 2025, we will continue deploying electric vehicles per the Global Vehicle policy, aiming to reduce fleet emissions by 50% by 2030 compared to 2019.

Energy efficiency at our sites

Every year, Nilfisk works to reduce energy consumption at our manufacturing sites. In 2024, we implemented energysaving activities at four of our eight sites, including daylight activation, enhancing efficiency in high-energy production processes, and optimizing heating. These efforts are expected to reduce annual GHG emissions by approximately 270 tonnes CO2 eq.

In 2025, Nilfisk plans to optimize processes such as roto- and injection molding, enhance lighting, and install solar panels to reduce gas consumption. These measures are expected to decrease Scope 1 and 2 emissions by 160 tonnes CO2 eq, aiding in achieving our targets.

Renewable energy

Nilfisk is increasing the use of renewable electricity at our sites. In 2024, our facilities in Italy and China produced solar power during the full year for the first time. In addition, Energy Attribute Certificates (EACs) were purchased locally to cover current and future electricity usage for selected sites in 2024 and 2025.

These actions led to a GHG reduction of 2,960 tonnes CO2 eq in 2024, with an expected reduction of 2,011 tonnes CO2 eq in 2025. Utilizing renewable electricity through EACs supports the reduction of Scope 2 emissions and helps achieve Nilfisk's Scope 1 and 2 targets. From 2023 to 2024, the share of renewable electricity from EACs and solar panels increased from 42% to 52%. This aids in mitigating the negative impact identified from use of fossil energy.

GHG emissions from own activities (market-based)

Renewable electricity consumed at Nilfisk sites (%)

  • Energy Attributes Certificates (EACs)
  • On-site solar panels
  • Grid electricity

Net-Zero feasibility study

In 2024, Nilfisk conducted a Net-Zero feasibility study to assess its readiness to reach the 2030 and 2050 reduction targets. This initiative aimed to align our climate goals with a Net-Zero trajectory and mitigate reputational risks. The study concluded that we have the potential to further reduce our emissions. In 2025, we will use the results of this feasibility study to further refine our climate targets and transition plan.

Scope 3

In 2024, Nilfisk focused on two main levers for Scope 3 emissions: product energy efficiency and switch of energy source.

Product launches serving energy efficiency

In 2024, Nilfisk introduced the new SC550 medium walk-behind scrubber dryer, which uses 27% less energy compared to older generation machines.

In 2025, we will expand our product portfolio with additional energy-efficient products and products with alternative energy sources. The 2024 actions and associated product launches in 2025 are expected to reduce Nilfisk's Scope 3 GHG emissions from use of sold products by 14,400 tonnes CO2 eq.

Upcoming targets

In 2025, Nilfisk will operationalize two sub-targets supporting the achievement of the Scope 1, 2, and 3 targets: The New Solutions Development target, requiring 25% reduction in energy consumption of all new products, and the energy efficiency targets at our manufacturing sites, requiring natural gas and electricity intensity improvements.

RESOURCES

In 2024, Nilfisk's total R&D spend amounted to 38.4 mEUR. Of this, 12 mEUR was invested in product development projects which included initiatives to reduce Scope 3, category 11 emissions, with 10 mEUR allocated to capitalized R&D projects. This is reported under activity 3.5 'Manufacture of energy efficiency equipment for buildings' in the EU Taxonomy.

To further leverage these CAPEX investments and achieve the emissions reduction targets for 2030, we plan to spend an additional 7-10 mEUR on these projects in 2025. Some of them will also support our initiatives to reduce water consumption in our products. This aligns with our overall capital allocation policy of investing in the development of new products and technologies. Read more about our R&D projects in the Management Review on page 32 and Note 2.3 of the Financial Statements.

Climate change adaptation

Material IRO

Nilfisk has identified a risk related to adapting to climate change from having operations in locations at risk of natural disasters and extreme weather. Incidents could negatively affect cost in addition to revenue loss. We have developed Emergency Management processes and governance to mitigate the risk.

POLICIES

Climate Change and Energy policy

Nilfisk's Climate Change and Energy policy outlines the annual process for evaluating climate risks and identifying opportunities. The policy ensures ongoing improvements and adaptation measures, with guiding principles for assessing affected assets, associated risks, and determining necessary mitigation actions. It formalizes the link between climate change adaptation and our Enterprise Risk Management framework.

Environment emergency procedure

Nilfisk has a global environmental emergency preparedness and response Standard Operating Procedure (SOP) that requires all sites within our Environmental Management System (EMS) scope to establish processes for natural disasters such as tornadoes, hurricanes, floods, and storms. Implementation is monitored through EMS tracking, and the SOP is overseen by the VP of Global Quality.

ACTIONS

In 2024, we focused on identifying physical and transition risks and opportunities related to climate through resilience analysis. For this, we activated external databases and services to support the analysis.

In 2025, further work will be done to integrate climate change adaptation actions into our governance process and enterprise risk management process and to implement measures addressing the most significant physical climate risks at our sites. A new real estate policy will incorporate climate risk criteria when evaluating new site locations.

Progress on targets

Scope 1, 2, and 3 GHG targets

Scope 1 and 2 - GHG emissions (market-based)
Data indicator Unit Base year
2019		 2024 Target 2030 Annual % target
/base year
Total Scope 1 and 2 - GHG emissions
(market-based)		 tCO2
eq		 22,718 17,785 14,767 -35% -22%
Scope 3 - GHG emissions (absolute and intensity)
Data indicator Unit Base year
2021		 2024 Target 2030 Annual % target
/base year
Scope 3, category 11 absolute emissions
11. Use of sold products tCO2
eq		 2,262,235 1,482,345 1,215,000 -34%
Scope 3, category 11 intensity metric
Scope 3, category 11 GHG intensity based
on gross profit		 tCO2
eq/'000EUR		 5.62 3.42 2.92 -48% -39%

In 2024, market-based Scope 1 and 2 emissions decreased by 22% compared to the baseline year 2019. This reduction is 6 percentage points below the linear pathway to the well-below 2˚C target. The decrease is attributed to increased consumption of renewable electricity and reduced fleet emissions due to lower mileage and lower emissions per vehicle.

Absolute Scope 3 emissions from the use of sold products decreased by 34% in 2024 compared to the baseline year 2021. This reduction is due to lower volumes and changes in the product mix. Nilfisk's gross profit increased by 7.7% from 2021 to 2024, resulting in a 39% decrease in Scope 3 emissions intensity from the use of sold products compared to the baseline year 2021. This is 23 percentage points below the linear pathway to the well-below 2˚C target.

Accounting policy

The targets were defined in 2021 jointly between the Product Management, R&D, and Sustainability functions. They were approved by the Nilfisk Leadership Team.

Nilfisk's Scope 1 and 2 absolute target and Scope 3 intensity target were independently validated by the Science-Based Target initiative. The boundaries of the GHG emission reduction target are aligned with the GHG emissions reported in the metrics section for E1-6.

In 2030, Scope 1 and 2 are expected to have increased due to the activation of Nilfisk's strategic direction, and Scope 3 emissions are expected to have decreased, mainly from a different product mix. However, as part of the decision process prior to submission, an analysis was conducted on the effects of R&D activities and grid decarbonization that would support achieving the target.

Scope 1 and 2

The Scope 1 and 2 emissions target was defined using the absolute contraction method. It is based on market-based

emissions using the same boundaries as described in Scope 1 and 2 accounting policies. Data quality from fleet and sites was the main driver of selecting 2019 as the representative baseline year, along with 2020 being an outlier due to the COVID-19 pandemic.

Scope 3, category 11 intensity

Nilfisk's Scope 3 emissions intensity target is based on gross profit. It is calculated as the absolute emissions divided by Nilfisk's gross profit as reported in the income statement of the financial statements.

The Scope 3 target was defined using the GEVA (GHG emissions per unit of value added) method. Nilfisk has chosen 2021 as the base year for Scope 3 emissions because it marked the first year where the quality of data collection and the inclusion of comprehensive product attribute data were fully established. As required by the ESRS, the associated absolute values for the target year were calculated. It was done by multiplying the 2030 intensity target with the average gross profit from historical years (from 2021 to 2024).

Metrics

E1-5 Energy consumption and mix

Data indicator Unit 2024 2023
Fuel consumption from coal and coal products MWh - -
Fuel consumption from crude oil and petroleum products MWh 51,048 52,849
Fuel consumption from natural gas MWh 22,371 21,191
Fuel consumption from other fossil sources MWh - -
Consumption of purchased or acquired electricity,
heat, steam and cooling from fossil sources		 MWh 6,473 7,142
Share of fossil sources in total energy consumption % 88.9% 90.2%
Total energy consumption from fossil sources MWh 79,892 81,182
Share of nuclear sources in total energy consumption % 1.2% 1.4%
Total consumption from nuclear sources MWh 1,119 1,240
Fuel consumption from renewable sources MWh 97 224
Consumption of purchased or acquired electricity,
heat, steam and cooling from renewable sources		 MWh 7,680 7,092
Consumption of self-generated non-fuel renewable energy MWh 1,087 223
Share of renewable sources in total energy consumption % 9.9% 8.4%
Total renewable energy consumption MWh 8,864 7,539
Total energy consumption related to own operations MWh 89,875 89,961
Energy in high climate impact sectors
Data indicator Unit 2024
Energy intensity from activities in high climate impact sectors MWh/mEUR 59.11
Total energy consumption from activities in high climate impact sectors MWh 48,587
Data indicator Unit 2024
Revenue from activities in high climate impact sectors used to calculate energy intensity mEUR 821.9
Other revenue mEUR 206.0
Total revenue as reported in the financial statements mEUR 1,027.9

Accounting policy

Energy consumption and mix

Total energy consumption includes energy used at Nilfisk sites and by Nilfisk's fleet (Scope 1 and 2).

Energy from sites

Total energy consumption is the aggregate of energy consumed across all Nilfisk sites determined through direct data collection of all manufacturing sites and key non-manufacturing sites, covering approximately 90% of the total energy consumption. Estimations have been made for remaining sites. Estimations are made when energy data is not yet available at the time of reporting. The estimation is based on the average development across sites for the same period in the previous year. If the data for the full year is missing, data from the previous year is used. The estimation method can deviate if sites provide additional insights to estimate missing data. Low degree of estimates has been used for energy consumption from sites data. Energy consumption is converted into MWh using the latest available conversion factors at the end of the reporting period, as provided in the energy and sustainability platform developed by Schneider Electric.

Energy from fleet

Energy from fleet is the aggregate of energy consumed across the Nilfisk fleet, determined through direct data collection from entities operating most of the fleet and extrapolations for the remaining fleet. The energy consumption is calculated based on kilometers driven by each vehicle, multiplied by the latest vehicle- and fuel-specific conversion factors of energy usage per kilometer from DEFRA. If a specific vehicle type-fuel type factor is missing, an estimation is made based on known differences in energy consumption for other vehicle types. If the fuel type is unknown, the DEFRA factor for unknown fuel is used, or the average of gasoline and diesel factors for the same vehicle type is applied. High degree of estimates and low degree of extrapolations have been used for energy from fleet data.

Allocation of energy sources to ESRS breakdown

Nilfisk does not use coal or coal products. Fuel consumption from crude oil and petroleum products includes diesel, fuel oil, LPG, and gasoline consumed by sites and the fleet, while natural gas is only consumed at the sites. Fossil-sourced electricity, heat, steam, and cooling consumption is summed from site and electric vehicle use, excluding electricity covered by Energy Attribute Certificates (EACs) and solar production, and electricity from nuclear and renewable energy.

The consumption of nuclear electricity is calculated from the grid electricity used at sites and by the fleet based on the AIB residual mix for European countries, and from the IEA monthly electricity reports for other countries. Renewable fuel consumption includes ethanol, biodiesel, and biodiesel HVO for sites and fleet. Renewable electricity consumption is calculated from EACs, on-site generation, and grid electricity from residual mix.

Restatements: Nilfisk has restated 2023 figures due to enhanced data quality and accuracy, leading to updated input assumptions. Consequently, fuel consumption from natural gas, fossil energy, nuclear energy, and renewable energy have been restated. Read more in the General basis for preparation section.

Energy in high climate impact sectors

Nilfisk is in scope of the high climate impact sector "manufacturing". This means that, energy from all manufacturing sites, cars, and an allocation of energy from non-manufacturing sites is included. Energy from non-manufacturing sites is allocated based on revenue from service and products.

Energy intensity from activities in high climate impact sectors is calculated as the sum of energy in these sectors divided by revenue generated from these sectors, which is defined as revenue from products manufactured by Nilfisk sites.

E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions

GHG emissions
Milestones and target years
Data indicator Unit Base year 2023 2024 % vs. LY 2030 Annual % target /
base year
Scope 1 GHG emissions
Gross Scope 1 greenhouse gas emissions tCO2
eq		 13,736 14,900 14,476 -3%
Percentage of Scope 1 GHG emissions from regulated emission
trading schemes		 % - - -
Scope 2 GHG emissions
Gross location-based Scope 2 greenhouse gas emissions tCO2
eq		 8,309 5,585 5,052 -10%
Gross market-based Scope 2 greenhouse gas emissions tCO2
eq		 8,981 3,838 3,309 -14%
Significant scope 3 GHG emissions
Total gross indirect (scope 3) GHG emissions tCO2eq 2,262,235 1,710,130 1,815,274 6%
Percentage of GHG Scope 3 calculated using primary data 94% 95% 78%
1. Purchased goods and services tCO2
eq		 N/A N/A 332,929
11. Use of sold products tCO2
eq		 2,262,235 1,710,130 1,482,345 -13% 1,215,000 -34%
Total GHG emissions
Total GHG emissions (location-based) tCO2
eq		 - 1,730,615 1,834,802 6%
Total GHG emissions (market-based) tCO2
eq		 - 1,728,868 1,833,059 6%
Scope 1 and 2 - GHG emissions (market-based)
Total Scope 1 and 2 - GHG emissions (market-based) tCO2
eq		 22,718 18,738 17,785 -5% 14,767 -22%
Biogenic emissions outside of Scope 1-3
Data indicator Unit 2024
Direct biogenic emissions tCO2
eq		 4,705

Scope 1 and 2 market-based emissions per relevant breakdown

Data indicator Unit 2024 2023
Manufacturing sites tCO2
eq		 3,873 4,504
Non-manufacturing sites tCO2
eq		 3,595 3,452
Fleet tCO2
eq		 10,317 10,782

GHG intensity based on net revenue

Data indicator Unit 2024
Total GHG emissions (location-based) per net revenue tCO2eq/'000 EUR 1.79
Total GHG emissions (market-based) per net revenue tCO2eq/'000 EUR 1.78

Net revenue can be reconciled to total revenue as reported in the financial statements.

Market-based Scope 1 and 2 emissions decreased by 5% in 2024 compared to 2023. The decrease is attributed to increased consumption of renewable electricity and reduced fleet emissions due to lower mileage and lower emissions per vehicle.

Absolute Scope 3 emissions from the use of sold products decreased by 13% in 2024 compared to 2023. This reduction is due to lower volumes and changes in the product mix.

Read more on progress on targets on page 83.

E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions – continued

Accounting policy

Scope 1 and 2 greenhouse gas (GHG) emissions Nilfisk calculates Scope 1 and 2 greenhouse gas (GHG) emissions by multiplying energy

consumption volumes with specific emission factors, following ESRS principles and the Greenhouse Gas Protocol Corporate Standards. Scope 1 includes direct emissions from owned or controlled sources, while Scope 2 covers indirect emissions from purchased energy. The GHG emissions include CO2, CH4, and N2O, and are the sum of emissions from Nilfisk's fleet and sites. Other GHGs are not applicable to Nilfisk operations at the end of the reporting period.

Emission factors are based on the GWP values from the latest IPCC Assessment Report, with older reports used only if conversion is not possible. Emissions are calculated using the latest available emission factors at the end of the reporting period. Sources of emission factors are the AIB and Green-e residual mix factors, IEA and DEFRA. Electricity covered by Energy Attribute Certificates (EACs, purchased as unbundled) has an emission factor equal to zero. To calculate its main sites' emissions, Nilfisk uses the Resource Advisor platform. Excel-based tools are used to calculate estimated emissions and fleet emissions. Nilfisk does not participate in regulated Emission Trading Schemes.

Scope 3 – category 1 (Purchased goods and services)

The weight of materials purchased by selected suppliers, is based on the weight from E5-4 Resource inflows. Read the accounting policy for E5-4 Resource Inflows for more details.

Each material is assigned emission factors from the Ecoinvent database. A matching raw material and transformation process are selected, and the total emission factor is the sum of both. In some cases, only a material process is selected if the Ecoinvent process includes a processing step or if plastic pellets are purchased for molding at Nilfisk sites.

The Ecoinvent 'Cut-off' approach is used, meaning no emissions are allocated to secondary materials, and purchased recycled materials are considered emission-free.

Ecoinvent processes are available for European markets, the 'Rest of the World,' and the Global market. Due to uncertainty about raw material origins, all raw material processes use the Global market process. For transformation processes, the Europe-specific process is chosen for materials purchased in EMEA, and the 'Rest of the World' process is chosen for materials purchased in APAC or the Americas.

Emissions from indirect sourcing are calculated following a spend-based approach. Indirect sourcing activities resulting in emissions are first identified and Operational Expenditures per indirect sourcing activity are then multiplied by an emission factor using the Exiobase database.

Extrapolation and estimates are made during the calculation of materials weight (see E5-4 for more details). Emissions are estimated based on external databases. A high degree of estimates and a medium degree of extrapolations have been made.

Scope 3 GHG emissions – category 11 (Use of sold products)

Scope 3 emissions - category 11 'Use of sold products,' include emissions from the use of products sold by Nilfisk in the reporting period. These emissions are the sum of CO2, CH4, and N2O. GHG emissions from sold products are calculated by multiplying the estimated lifetime energy consumption of each product by their time in use and the amount sold. Non-emitting products, such as parts, accessories and consumables, are filtered out. Product energy use is estimated from technical specifications, yearly usage, and product lifetime, considering various factors like job requirements, machine productivity, and component lifetime tests.

Nilfisk calculates GHG emissions from its products' energy consumption (electricity, diesel, gasoline, LPG) using lifecycle emission factors, which include emissions from resource extraction to product usage. For fuels, DEFRA provides well-to-tank and combustion emissions factors. Electricity emission factors combine upstream, combustion, and lifecycle transmission and distribution emissions from IEA and EIB.

Emission factors are based on the GWP values from the latest IPCC Assessment Report, with older reports used only if conversion is not possible. DEFRA factors for LPG, gasoline, and diesel are the ones for 100% mineral fuels. A high degree of estimates and a low degree of extrapolations has been used for Scope 3 – use of sold products.

Emissions for products without data are extrapolated using the emission-revenue ratio from products with data at various levels of the product hierarchy. If no emission data is available at any level, the overall average of revenue and emissions is used.

Restatements: In 2024, Nilfisk upgraded its sales database to a more accurate system with enhanced data coverage. Consequently, calculated emissions for previous years increased, which have therefore all been restated for the periods 2021-2023.

GHG intensity based on revenue

The GHG intensity based on net revenue is calculated as the absolute emissions divided by Nilfisk's net revenue as reported in the income statement of the Financial Statements.

Scope 3 categories not in scope

The following Scope 3 categories are not in scope as they are either deemed not relevant or immaterial to Nilfisk: C2-C10, C12-C15. The estimated share of total Scope 3 emissions excluded is 3%.

Biogenic emissions

Biogenic emissions from electricity cannot be separated from the emission factors' databases Nilfisk uses for grid electricity. Therefore, reported emissions from electricity consumed in Scope 2 and Scope 3 Use of sold products include biogenic emissions from the grid electricity.

Scope 1 emissions are using DEFRA emission factors, which exclude biogenic emissions. Therefore, Scope 1 emissions are reported without biogenic emissions. Biogenic emissions are calculated by multiplying the amount of fuel and natural gas consumed with the out of scope emission factors from DEFRA.

Emissions from Scope 3 Purchased goods and services are based on emissions from processes and materials calculated in the life cycle assessment software SimaPro. The calculation uses materials and processes from the Ecoinvent database and emission factors from the Environmental Footprint method 3.1. The latter allows to separate biogenic from fossil CO2 emissions. Therefore, emissions from Purchased goods and services exclude biogenic emissions, which are reported separately.

E2 ESRS

Pollution

Nilfisk is dedicated to reducing environmental impacts throughout the product life cycle. We are committed to minimizing pollution and addressing both long-standing as well as emerging environmental challenges.

Policies and actions

Substances of concern and very high concern

Material IRO

Nilfisk has identified an actual negative impact from substances of concern and substances of very high concern, including PFAS (Per- and Polyfluoroalkyl Substances), as an entity-specific topic, from the making and disposal of our products. If not handled correctly, it will negatively affect people and the environment. The risk is associated with meeting increasing regulation and customer expectations.

We have taken measures to mitigate this by developing new standards for declaration and maturing governance and tracking of the substances.

Industrial machines often contain substances of concern, which can lead to pollution during both production and disposal. Addressing the presence of PFAS in cleaning machines is crucial due to their persistence in the environment and upcoming regulatory bans of PFAS in the US and EU before 2030.

POLICIES

Nilfisk recognizes the presence of substances of concern in our machinery and processes that pose potential risks to human health and the environment. We are committed to addressing these challenges and minimizing pollution throughout the product life cycle.

Standards on product substances

We created the 'NACS 2020 Standard – Nilfisk Corporate Standard' for the prohibition and declaration of substances. This standard outlines legal and Nilfisk-specific requirements on product substances and provides templates for supplier statements and substance declarations.

Code of Conduct

Nilfisk's Code of Conduct governs activities related to hazardous materials - no. 6 Climate & Environment. Read more about our Code of Conduct in section G1 - Business conduct.

New policy plans

Nilfisk acknowledges the importance of pollution from substances of concern. However, we do not currently have a policy related to this, as we are in the process of building the necessary data structures to set relevant guidelines.

ACTIONS

Pilot on PFAS

In 2024, we initiated a pilot project to gather PFAS information from suppliers, aiming to understand their presence in products and explore alternatives with less environmental impact. In collaboration with the Danish Technological Institute, we are building knowledge and assessing supplier risks related to PFAS.

Updated standard on declarable substances

In 2024, we updated our NACS 2020 Standard for prohibiting and declaring substances of concern and very high concern. This update improves the process of data collection from suppliers and ensures compliance with regulatory and Nilfisk-specific requirements. The standard mandates that suppliers avoid using declarable substances in components whenever feasible and declare phthalates and plasticizers above 0.1% concentration. The updated standard and the forthcoming Substances of Concern policy will enforce these requirements.

Chemical database

In 2024, Nilfisk established the NACS Master Data, a centralized database for storing chemical composition data of our products. By 2025, this database will be enhanced and supported by an IT solution.

The NACS standards initiatives enable Nilfisk to take effective action on substance reduction and substitution, reducing pollution in our value chain.

Upcoming target

Nilfisk currently does not have a specific target for substances of concern but recognizes the importance of addressing this issue. In 2025, we will develop a target. The target development process will assess the extent to which PFAS will be in the target scope. The effectiveness of current policies and actions is not yet formally tracked.

Pollution from end-of-life products

Material IRO

Nilfisk has identified an actual negative entity-specific impact from the pollution from mismanagement of products at end-of-life. If not handled correctly it will negatively affect people and the environment. We have taken action to reduce the impact by setting up a policy and targeted product innovation.

End-of-life product considerations are a maturing topic at Nilfisk. We strive to build understanding to address pollution associated with the end-of-life phase of our products. Improper disposal of cleaning machines may release harmful substances into the environment and contribute to broader pollution issues. Additionally, materials that are not re-used contribute to scarcity.

POLICIES

Product Circularity policy

The Product Circularity policy aims to mitigate disposal impacts by enhancing product recyclability, repairability, and durability. Read more in section E5 - Resource use and circular economy.

Code of Conduct

Nilfisk's Code of Conduct governs activities related to pollution - no. 6 Climate & Environment. Read more in section G1 - Business conduct.

ACTIONS

In 2024, Nilfisk concentrated on extending product lifespans through improved serviceability and refurbishment to prevent end-of-life pollution.

Increasing product lifespan and take-back

Nilfisk has designed the new SC550 medium walk-behind scrubber dryer to enhance serviceability, extending product lifespan and delaying end-of-life. Future products will incorporate these serviceability design principles.

In 2025, we will continue to increase product lifespans by improving service technician efficiency. Rental offerings in Germany will expand with refurbishment and more customer contracts will include take-back offers.

Refurbishment of products

In 2024, we conducted refurbishment activities across 12 countries, focusing primarily on Germany and the US. Refurbishment is managed decentrally within Nilfisk. An investigation into reindustrializing refurbishment activities was conducted in 2024, with conclusions on enhancing efficiency expected in 2025.

End-of-life management of products

Pollution at product end-of-life is largely due to poor waste management. To address this, Nilfisk has created a new metric to track waste management maturity in our sales countries. Identifying countries with improper waste management will help us set targets and take action to mitigate this impact.

Upcoming target

Nilfisk currently does not have a specific end-of-life target for products but recognizes its importance. A target will be developed during 2025 and 2026. The effectiveness of current policies and actions is not tracked in a formalized manner.

Metrics

E2-5 Substances of concern and substances of very high concern

Substances of concern (SoC)
Data indicator
Unit		 2024
Class 1 Class 2 Class 3 Class 4 Class 5 Class 6
Amount of SoC that is generated or used during production or that are procured tonnes - - - 5 - 2
Amount of SoC that leaves facilities as part of products tonnes 245 5 3 19 2 -
Amount of SoC that leaves facilities as emissions, products, or services tonnes - - - - - -
Total amount of SoC tonnes 245 5 3 24 2 2
Substances of very high concern (SoVHC)
Data indicator Unit 2024
Class 1 Class 2 Class 3 Class 4 Class 5 Class 6
Amount of SoVHC that is generated or used during production or that are procured tonnes - 15 - - - -
Amount of SoVHC that leaves facilities as part of products tonnes 2,136 - - - - -
Amount of SoVHC that leaves facilities as emissions, products, or services tonnes - - - - - -
Total amount of SoVHC tonnes 2,136 15 - - - -

Of the substances reported by Nilfisk, 99% leave the facilities as part of products. Of these, 98% are lead compounds found in batteries.

The main hazard classes have been defined as: 1: Reproductive toxicity 2: Carcinogenicity 3: Germ cell mutagenicity 4: Hazardous to the aquatic environment 5: Specific target organ toxicity — single exposure 6: Respiratory/skin sensitization

Substances of concern and very high concern that are generated or used during production or that are procured is comprised of consumption at sites and is based on the annual amount of purchased chemicals for selected Nilfisk sites, categorized into manufacturing, R&D, and office sites. Hazard statements identify substances of concern, and a conservative approach assumes the total amount of purchased chemicals as substances of concern. Extrapolations have been used for the remaining sites.

Substances of concern and very high concern leaving facilities as part of products is comprised of consumption in products, including substances in parts, batteries, and detergents. 'Lead' in product parts is estimated using the Raw Material Weight Model (RMWM) and supplier or regulatory data. For other substances, calculations are based on supplier self-declarations, with estimates for parts without data. Substances in batteries and detergents are calculated from Safety Data Sheets and sales volumes and estimated in case of no data.

Nilfisk prioritizes reporting substances under the CMR classes (carcinogenic, mutagenic, or toxic for reproduction) based on volume, starting with the largest.

A high degree of extrapolations has been used for substances of concern and very high concern data.

E2 (entity-specific) PFAS

PFAS (entity-specific)
Data indicator Unit 2024
Percentage of PFAS high-risk suppliers provided PFAS information % 38%

E2 (entity-specific) Pollution of air, water, and soil

Pollution from product end-of-life (entity-specific)
Data indicator Unit 2024
Percentage of products sold in countries with low waste management maturity % 51%

Percentage of PFAS high-risk suppliers provided PFAS information

The metric represents the percentage of spend on suppliers who provided PFAS information to Nilfisk, calculated as the spend from responses received divided by the total spend on high-risk suppliers.

The suppliers contacted is based on scoring Nilfisk's total supplier base from 1-10 on a PFAS risk scale, developed by the Danish Institute of Technology (DIT) and is not publicly available. First, Nilfisk assessed the function and materials of the parts supplied. Based on that information, DIT assessed the risk of PFAS in the parts and assigned scores to suppliers. Nilfisk has defined high-risk suppliers as those with a PFAS risk score between 7-10 and an annual spend over EUR 5,000, with the addition of selected suppliers through expert screening.

Accounting policy Accounting policy

Percentage of products sold in countries with low waste management maturity

The entity-specific metric is defined as percentage of revenue from countries with a waste management score lower than the average waste management score. Countries are allocated to the waste management score calculated in the framework of the Environmental Performance Index developed by the Yale Center for Environmental Law & Policy. If a scoring is not available for a country, an average of the

region the country is in is used, calculated from Nilfisk sales countries in that region. In the case when a Nilfisk product is not allocated to any region or country, the global average of waste management scores of Nilfisk sales countries is used. A low degree of estimates has been used.

E3 ESRS

Water and marine resources

Nilfisk acknowledges the importance of responsible water usage, both in the usage of our products as well as in production processes. Although our production processes do not consume large amounts of water, we recognize the environmental impact of water consumption. We assess this as a material issue from a salient human rights perspective.

Policies and actions

Water consumption from product usage

Nilfisk has identified a negative impact on medium and long-term water scarcity due to the use of our products. We mitigate this impact through policy measures and targeted product innovation.

Nilfisk aims to minimize water usage from our products. We are committed to developing water-saving technologies and setting industry standards in sustainable water practices. We are exploring ways to reduce water consumption and incorporate water recycling systems into our products, mitigating the environmental impact, and helping our customers achieve their sustainability objectives.

POLICIES

Product Circularity policy

Water usage from our products falls under the Product Circularity policy, which incorporates relevant circularity initiatives. This dimension of the policy requires specific Nilfisk functions to collect data, set targets, and operationalize strategies to reduce water consumption. Read more in section E5 - Resource use and circular economy.

Code of Conduct

Our Code of Conduct governs activities related to water in rule no. 6 Climate & Environment. Read more in section G1 - Business conduct.

ACTIONS

Water saving product features

In 2024, we implemented water-saving technologies in various new floorcare products. The SC550 medium walk-behind scrubber dryer, launched in 2024, incorporates water-saving settings in all standard configurations. Additional product developments, focusing on water conservation, are expected to complete by 2025 and 2026.

New technology projects

In 2025, we are launching three technology development projects aimed at reducing water consumption in highpressure washers and floorcare machines. Two of these projects are expected to be completed by the end of 2026, with the third concluding after 2026. These initiatives align with the Product Circularity policy, focusing on optimizing water usage in our products.

Nilfisk recognizes the importance of monitoring product water usage. We are currently developing a target for product water usage which we expect to finalize by 2025. The effectiveness of these policies and actions is currently not tracked in a formalized manner.

Water from sites

Material IRO Material IRO

Nilfisk has identified an actual negative impact from water usage at our own manufacturing sites, causing lower water availability. We mitigate this impact through water recycling initiatives.

POLICIES

We are committed to ensuring that our water consumption does not negatively impact local communities. While water usage at our sites is relatively low, most of the water is consumed during product testing. Our Code of Conduct guides employees to optimize water usage, especially in water-scarce areas. We continuously monitor water consumption to assess the need for a specific policy at our sites.

ACTIONS

Water recycling at selected sites

Nilfisk currently has two water recycling systems, one at our R&D center in Denmark, and one at our manufacturing site in China. We will continuously assess the need for additional water recycling systems.

We do not currently have a target for water at our sites but will continuously assess the need for this. Effectiveness of these actions is currently not tracked in a formalized manner.

Metrics

E3-4 Water consumption

Water
Data indicator Unit 2024
Total water consumption m3 99,356.6
Total water consumption in areas at water risk, including areas of high-water stress m3 5,857.0
Total water recycled and reused m3 15,493.0
Total water stored m3 312.0
Changes in water storage m3 -
Share of the measure obtained from direct measurement,
from sampling and extrapolation, or from best estimates
direct measurement % 77.6%
sampling and extrapolation % 18.1%
best estimates % 4.3%
Water intensity ratio m3
/mEUR		 96.7

Water consumption

Total water consumption is the aggregate of water used across all Nilfisk sites, determined through direct data collection of all manufacturing sites and additional selected sites. Extrapolations have been used for the remaining sites.

Water consumption data is collected from invoices or meters. If the data is unavailable, the previous year's data is used for estimation. Extrapolations are based on average water consumption per headcount, excluding manufacturing sites. Low degree of extrapolations and estimates has been used for water consumption data.

High-water stress areas identification

All Nilfisk sites with 20 or more employees are assessed for water risk. Sites with fewer than 20 employees are excluded due to assumed insignificant water consumption. The WWF Water Risk Filter is used to evaluate water-related risks based on geographic location and operational characteristics. Water consumption for high-risk sites is aggregated to determine total water usage in high-water stress areas.

Water intensity

Water intensity is calculated as the sum of water consumption divided by total revenue (in mEUR), corresponding to net revenue, as disclosed in the Financial Statements.

E3 Water consumption from product usage (entity-specific)

Water consumption from product usage

Data indicator Unit 2024
Total water consumption from product usage m3 29,109,941.0

Water consumption from high-pressure washers represent 74% of the total water consumption of Nilfisk products.

Accounting policy Accounting policy

Water consumption from product usage (entity-specific)

Water consumption from product usage is calculated by summing the estimated annual amount of water consumed by Nilfisk's products during the reporting period. The annual amount of water consumed is calculated as the hourly water consumption of each product multiplied by hours in use and the quantities sold during the reporting period. Hourly water consumption is derived from the technical specifications of the machines, where water flow is calculated using recognized international standards. Hours in use are estimated based on Nilfisk's experience considering various factors like job requirements and machine productivity.

When data for a given product is not available at the lowest level of the product hierarchy (level 5, from a hierarchy from 1 to 5), estimates have been made based on a higher product group level in the hierarchy or the average water consumption for the entire portfolio. A high degree of estimates has been used for this metric.

E5 ESRS

Resource use and circular economy

Nilfisk addresses resource optimization and circular economy practices to minimize our environmental impact. Our resource management approach spans the entire value chain, from manufacturing to end-of-life disposal, reducing costs, minimizing waste, and extending product lifecycles.

Targets

Resource inflows, including resource use Resource inflows, including resource use

Minimum annual consumption of 1,280 tonnes of recycled plastics

By replacing 30% of virgin plastics with recycled plastics in selected products

Progress towards 2028 target

Policies and actions

Material IRO

Nilfisk has identified an actual negative impact from our consumption of materials, contributing to material scarcity. The anticipated decline in material availability poses a risk to us, necessitating innovation and the substitution of materials. We accommodate the impact and risk by having policies, actions, and innovation activities in place.

Reducing resource inflows and outflows is crucial for sustainability and innovation, minimizing costs and waste. Our focus on environmentally responsible production enhances product longevity and strengthens Nilfisk's competitiveness while mitigating material scarcity and environmental pollution.

POLICIES

Product Circularity policy

Nilfisk's Product Circularity policy encompasses six key themes aimed at reducing resource inflows and usage. Overseen by Nilfisk's SVP, Head of Product Portfolio, the policy undergoes regular reviews for alignment with sustainability trends. It applies to Nilfisk's operations and focuses on minimizing the use of virgin resources. The policy mandates data collection, target setting, concept operationalization, and roadmap definition for increasing recycled content. The policy's intent is internal. Suppliers will be made aware of the effects of the policy in correlation with regular business interactions.

Code of Conduct

Nilfisk's Code of Conduct governs activities related to resource inflows - no. 9 Product certification and no. 10 Quality. Read more about in section G1 - Business conduct.

ACTIONS

Recycled plastics actions

One of Nilfisk's strategic priorities, 'Service-as-a-Business', also addresses global resource challenges and plastic waste pollution. We are committed to using recycled plastic, declaring recycling levels of post-consumer and post-industrial plastics at the product level. In 2024, Nilfisk initiated a project to overcome technical challenges with recycled plastics, which is expected to be completed in 2025. This project will enhance the use of recycled plastics in our products globally. Additionally, Nilfisk integrated recycled plastics into several new products, with the SC550 featuring post-consumer recycled plastics available in 2025.

Recycled plastics target and innovation roadmap

In 2024, Nilfisk established a target for recycled plastic and developed the Product Circularity policy.

In 2025, we will launch another project to address additional technical challenges with recycled plastics. To achieve our recycled plastics target, we will also define a roadmap and allocate more resources for sourcing recycled materials.

Resource outflows related to products and services, including waste

Material IRO

Nilfisk has identified two actual negative impacts from the challenge on product repairability and recyclability, and improper waste management within our own operations and with our customer. These matters foster pollution and resource depletion. We mitigate by having policies, actions, and innovation activities in place. The inherent risk of not meeting the increasing regulation on this matter poses a risk to Nilfisk.

Resource outflows, including the repairability, recyclability, and disposal of products and packaging waste, are key considerations for Nilfisk. Recycling Nilfisk's products increases resource reuse potential. Furthermore, proper waste management at our sites and during product use is crucial for reducing environmental impact and supporting our customers' sustainability efforts.

POLICIES

Product Circularity policy

Nilfisk's Product Circularity policy aims to reduce waste by enhancing recyclability, repairability, and durability. It mandates data collection, target setting, and roadmap definition to improve resource reuse and minimize environmental impacts. Key initiatives include using recycled plastics in products and effective waste management strategies.

Code of Conduct

Nilfisk's Code of Conduct governs activities related to waste - no. 6 Climate & Environment. Read more in section G1 - Business conduct.

ACTIONS

Product recyclability rate project

In 2024, Nilfisk participated in the CirkEL project, funded by the Danish Environmental Protection Agency. This project analyzed opportunities and challenges in the reuse, refurbishment, and recycling of floorcare products. It led to the development of a methodology to calculate product recyclability rates. The project is expected to conclude in 2025.

Product serviceability and refurbishment

In 2024, we focused on enhancing the serviceability and refurbishment of our products, key enablers of a circular economy. For more details, refer to the section on actions in E2 Pollution from end-of-life products. We also prioritized our consumer portfolio regarding data on product repairability and recyclability in 2024 and will continue to do so in 2025.

Regular service and maintenance of professional cleaning machines positively impacts the environment by extending equipment lifespan and thereby reduces waste, energy consumption, and minimizes water usage. Service-as-abusiness and scheduled maintenance is part of the strategic direction guiding our priorities.

Standardization and training on waste

In 2024, we standardized waste stream categorization across all manufacturing sites, including non-ISO certified ones, ensuring performance above regulatory requirements. ISO-certified sites provide waste handling training, highlighting the importance of proper human behavior in waste management. These measures will enhance waste management and reduce the risk of local pollution from Nilfisk's sites. Read more on page 30 of the Management Review for an overview of Nilfisk's ISO-certified sites.

Extending product durability

Extending product durability is impacted by product maintenance. Nilfisk has made targeted efforts to address this with customers. We do this by taking action to shift customer behavior towards planned maintenance via a fixed service agreement, instead of an ad-hoc or nonmaintenance approach, which would reduce product lifetime.

Nilfisk currently does not have a target for resource outflows or waste but will continuously assess the need for one. The effectiveness of these polices and actions is currently not tracked in a formalized manner.

Progress on targets

Resource inflows targets

Recycled plastics
Data indicator Unit 2023 2024 Target 2028
Recycled plastics consumed tonnes 337 365 1,280

Nilfisk has voluntarily committed to consuming at least 1,280 tonnes of recycled plastics annually by 2028, using 2023 as the baseline year. This target will be achieved by incorporating a minimum of 30% recycled content from post-consumer and post-industrial plastics into selected products. This initiative supports the principles of a circular economy by promoting material reuse and recycling. Our 2024 performance aligns with the planned progress towards the 2028 target.

Metrics

E5-4 Resource inflows

Weight of products and materials
Data indicator Unit 2024
Weight of products and technical and biological materials tonnes 77,845
Percentage of biological materials (and biofuels used for non-energy purposes) % -
Absolute weight of recycled materials used to manufacture products and services (including packaging) tonnes 16,118
Percentage of recycled materials % 21%

Most of the resources we consume come from the purchase of components and raw materials used to manufacture our products. More than 94% of the recycled materials we use are steel and aluminum.

Recycled plastics consumed

Represents the amount of recycled plastic from products consumed in the reporting year. Plastic raw materials purchased are, in most cases, a mix of virgin and recycled plastic. The volume of plastic consumed is multiplied by the recycled plastic content to calculate the amount of recycled plastic consumed.

The main methodology used to support the target setting was a mapping of the amounts of plastic used in different component types and their ability to integrate recycled material. The target was defined based on the conclusive sustainability evidence that using recycled materials reduces the pressure on natural resources and the environment.

The target has been set in consultation with key internal stakeholders. The metric is monitored and reported to the Nilfisk Leadership Team once a year. From 2025, a process will be put in place to track progress quarterly.

Accounting policy Accounting policy

Weight of products and materials

Direct suppliers: The weight of products and materials sourced from direct suppliers is calculated by converting supplier spend data into weight for selected suppliers based on supplier input, and if unavailable estimates have been made. Extrapolations have been used for the remaining suppliers. High degree of estimates and medium degree of extrapolations have been made.

Indirect suppliers: The weight of products and materials from indirect suppliers is estimated using OPEX data, converted into tonnage using basic price information. Only expenses directly linked to production and product development are included, excluding services or supporting activities. The assessment covers materials for laboratory/prototypes and equipment expenses. High degree of estimates and low degree of extrapolations has been used for assessing weight

of products and materials. Weight is in both absolute value and percentage of secondary reused or recycled components, secondary intermediary products, and secondary materials.

Direct suppliers: Nilfisk uses recycled materials in its components and raw materials, including cardboard, steel, and aluminum. Suppliers also purchase plastic resins made of 100% recycled plastic. The total weight of recycled materials is calculated by summing the weights of these materials multiplied by their recycled content, which varies by material. The recycled content of materials is based on regional and global averages of recycled content found in literature.

Indirect suppliers: Due to the low tonnage of materials used from indirect suppliers and the lack of data from suppliers, a conservative approach is followed. No recycled materials are reported to be present in materials from indirect suppliers.

E5-5 Resource outflows

Products and materials
Data indicator Unit 2024
Expected durability of the products placed on
the market, in relation to the industry average
for each product group:
Floor cleaning & maintenance years 4.8
High-pressure washers years 7.6
Vacuum cleaners years 7.4
Others years 6.6

Repairability of products, using an established rating system

Data indicator Unit 2024
Average repairability rate of consumer
high-pressure washers		 points 8.5
Average repairability rate of consumer
vacuum cleaners		 points 6.5

Recyclable content in products and packaging

Data indicator Unit 2024
The rates of recyclable content in products % 80%
The rates of recyclable content in products
packaging		 % 48%
Waste
Data indicator Unit 2024
Waste diverted from disposal, breakdown by
hazardous and non-hazardous waste and
treatment type:
Preparation for reuse tonnes -
Recycling tonnes 10.3
Other recovery operations tonnes 3.5
Hazardous waste tonnes 13.8
Preparation for reuse tonnes 108.7
Recycling tonnes 2,862.0
Other recovery operations tonnes 241.1
Non-hazardous waste tonnes 3,211.8
Waste directed to disposal, breakdown by
hazardous and non-hazardous waste and
treatment type:
Incineration tonnes 3.3
Landfill tonnes 1.0
Other disposal operations tonnes 3.9
Hazardous waste tonnes 8.2
Incineration tonnes 43.7
Landfill tonnes 809.2
Other disposal operations tonnes 9.6
Non-hazardous waste tonnes 862.5
Total waste generated tonnes 4,096.3
Non-recycled waste tonnes 1,111.8
Percentage of non-recycled waste % 27.1%
Total amount of hazardous waste tonnes 22.0
Total amount of radioactive waste tonnes -

Accounting policy

Products and materials – durability

Durability is the expected lifetime of a product, calculated as the sum of product lifetimes divided by the number of product models sold. Product lifetime is expressed in years, and the number of product models sold is based on unique product models sold during the reporting year. Average durability is calculated for each product category: floor cleaning & maintenance, high-pressure washers, and vacuum cleaners. Unclassified products are grouped as "Others". Products without durability data are estimated based on the average lifetime of products with available data. High degree of estimation has been made.

Comparison with industry average: No industry average for Nilfisk product durability exists. Until available, Nilfisk will report that its product durability cannot be compared. If some products are demonstrated by a third-party study to have higher or lower durability than other industry peers, it will be mentioned.

Products and materials – repairability

The French Repairability Index provides a methodology to assess the repairability of consumer electronics. For Nilfisk, this applies to consumer vacuum cleaners and high-pressure washers. Other products do not have an established rating system. The repairability rate calculation follows guidelines from Article L. 541-9-2 of the French environmental code. The repairability rates reported are the average repairability rates for each of the two product categories in scope. Low degree of estimation has been made.

Products and materials – rates of recyclable content

Products: The recyclability rate of Nilfisk's products is estimated using data from selected products in their portfolio. The methodology for reporting and assessing recyclability is defined by using expert knowledge to evaluate the recyclability of each material in the products. To estimate the overall rate, weighted averages are calculated for products in the same category (e.g., vacuum cleaners, high-pressure washers, floorcare machines) and then applied to all products in that category. An overall weighted average is then calculated for the entire portfolio. A high degree of estimation has been made.

Packaging: Nilfisk calculates the packaging recyclability rate by determining the weight of each material type used for packaging (wood, cardboard, plastic, metal) and multiplying these weights by global average recyclability rates for each material. The total is then divided by the total packaging weight consumed during the year. A high degree of estimates has been used for recyclability data of packaging material.

Waste

Waste is reported on the basis of invoices or data received from waste collectors for selected representative Nilfisk sites split into two categories: manufacturing and non-manufacturing sites. Waste disposal methods are reported based on the different end-of-life treatments defined by the local waste collector. Extrapolations have been used for the remaining sites based on average waste consumption per headcount split into the two categories. A medium degree of extrapolations has been used for waste data.

Environmental

EU Taxonomy

The EU Taxonomy is a classification system designed to identify environmentally sustainable economic activities and establish a common definition for such activities.

To report on the EU Taxonomy, Nilfisk has identified and determined which economic activities are eligible and aligned with the EU Taxonomy definition, subsequently allocating revenue, CAPEX, and OPEX to those activities. This work has been conducted with reference to the criteria set out in the EU Taxonomy regulation.

Taxonomy eligibility

The Taxonomy regulation is maturing and evolving, which means that reporting within the taxonomy is subject to ongoing interpretation. Nilfisk's Taxonomy eligibility states the proportion of Nilfisk's economic activities relating to the Climate Delegated Act (EU 2021/2139), the Complementary Delegated Act (EU 2022/1214), and the Environmental Delegated Act (EU 2023/2486).

Nilfisk has identified nine economic activities to be included in the Taxonomy reporting. The economic activities are related to climate change mitigation (CCM), climate change adaption (CCA), and circular economy (CE).

Taxonomy alignment

Based on the defined screening criteria for each economic activity, Nilfisk has identified alignment for one economic activity, related to climate change adaptation.

For most of Nilfisk's eligible activities, the defined screening criteria is not met. Most screening criteria require that the associated products fall into the highest two populated classes of energy efficiency of the EU energy label classification. Energy label classifications are still being developed for vacuum cleaners for private consumers. For industrial cleaning equipment, no such labelling currently exists. Therefore, very low alignment is reported in 2024.

For the remaining eligible activities, Nilfisk does not currently have the required detailed documentation available to meet the alignment criteria and will not disclose these activities as Taxonomy-aligned. Nilfisk will continuously review the

documentation and requirements for taxonomy alignment going forward.

Revenue

In 2024 Nilfisk reported eligible revenue for CCM and CCE. The revenue is mainly related to floorcare, vacuum cleaners and high-pressure washers from Nilfisk's product range

CAPEX

In 2024 Nilfisk reported aligned CAPEX for CCA and eligible CAPEX for CCM, CCA, and CE. The aligned CAPEX is related to capitalized costs for external consultants and internal hours related to writing, modifying, testing and supporting revenue-driven software. The increase in eligible CAPEX activities was mainly from R&D projects related to our product pipeline.

OPEX

In 2024 Nilfisk reported aligned OPEX for CCA and eligible OPEX for CCM, CCA, and CE. The aligned OPEX is related to non-capitalized costs towards external consultants related to writing, modifying, testing and supporting software.

CAPEX plan

Nilfisk does not have any CAPEX or OPEX that is 'part of a plan to expand Taxonomy-eligible economic activities or enable Taxonomy-eligible economic activities to become Taxonomy-aligned'.

Proportion of revenue/total revenue

Economic
activity		 Taxonomy-aligned
per objective		 Taxonomy-eligible
per objective
CCM - 66.8%
CCA - -
WTR - -
CE - 22.1%
PPC - -
BIO - -

Proportion of CAPEX/total CAPEX

Economic
activity		 Taxonomy-aligned
per objective		 Taxonomy-eligible
per objective
CCM - 44.3%
CCA 3.8% 3.8%
WTR - -
CE - 11.6%
PPC - -
BIO - -

Proportion of OPEX/total OPEX

Economic
activity		 Taxonomy-aligned
per objective		 Taxonomy-eligible
per objective
CCM - 81.2%
CCA 6.4% 6.4%
WTR - -
CE - 3.7%
PPC - -
BIO - -

Revenue

2024 Substantial contribution criteria DNSH
criteria
("Does
Not
Significantly
Harm")
Economic activities (1) Code (2) Revenue (3) Proportion of revenue
2024 (4)		 mate Change
Mitigation (5)
Cli		 mate Change
Adaptation (6)
Cli		 Water (7) Pollution (8) my (9)
Circular econo		 Biodiversity (10) mate Change
Mitigation (11)
Cli		 mate Change
Adaptation (12)
Cli		 Water (13) Pollution (14) my (15)
Circular Econo		 Biodiversity (16) m Safeguards
mu
Mini
(17)		 my
(A.2) revenue, 2023 (18)
aligned (A.1) or eligible
Proportion of taxono		 Category enabling
activity (19)		 Category transitional
activity (20)
m€ % 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)
- - - - - - - - - - - - - - - - 0%
Revenue of environmentally sustainable activities (Taxonomy-aligned) (A.1) - 0% 0% 0% 0% 0% 0% 0% - - - - - - - 0%
Of which Enabling - 0% 0% 0% 0% 0% 0% 0% - - - - - - - 0%
Of which Transitional - 0% 0% - - - - - - - 0%
A.2 Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned)
EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL
Manufacture of energy efficiency equipment for buildings CCM 3.5 687.2 66.8% EL N/EL N/EL N/EL N/EL N/EL 66.9%
Repair, refurbishment, and remanufacturing CE 5.1 63.3 6.2% N/EL N/EL N/EL N/EL EL N/EL 5.9%
Sale of spare parts CE 5.2 145.3 14.1% N/EL N/EL N/EL N/EL EL N/EL 14.3%
Sale of second-hand goods CE 5.4 4.9 0.5% N/EL N/EL N/EL N/EL EL N/EL 0.6%
Product-as-a-service and other circular use and result-oriented models CE 5.5 13.5 1.3% N/EL N/EL N/EL N/EL EL N/EL 1.1%
Revenue of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)		 914.2 88.9% 75.2% 0% 0% 0% 24.8% 0% 88.8%
Revenue of Taxonomy eligible activities (A.1+ A.2) 914.2 88.9% 75.2% 0% 0% 0% 24.8% 0% 88.8%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Revenue of Taxonomy-non-eligible activities 113.7 11.1%
Total 1,027.9 100%

The codes used in Sections A.1 and A.2 of the annex indicate that;

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.

MR SS FS

E1 Climate change E2 Pollution E3 Water E5 Resource use and circular economy EU Taxonomy EU Taxonomy

CAPEX

2024 Substantial contribution criteria DNSH criteria ("Does
Not		 Significantly Harm")
Economic activities (1) Code (2) CAPEX (3) Proportion of CAPEX,
2024 (4)		 mate Change
Mitigation (5)
Cli		 mate Change
Adaptation (6)
Cli		 Water (7) Pollution (8) my (9)
Circular econo		 Biodiversity (10) mate Change
Mitigation (11)
Cli		 mate Change
Adaptation (12)
Cli		 Water (13) Pollution (14) my (15)
Circular Econo		 Biodiversity (16) m Safeguards
mu
Mini
(17)		 my
aligned (A.1) or eligible
(A.2) CAPEX, 2023 (18)
Proportion of taxono		 Category enabling
activity (19)		 Category transitional
activity (20)
m€ % 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)
Computer programming, consultancy and related activities CCA 8.2 3.2 3.8% N/EL Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 4.2%
CAPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1) 3.2 3.8% 0% 100.0% 0% 0% 0% 0% Y Y Y Y Y Y Y 4.2%
Of which Enabling - 0% 0% 0% 0% 0% 0% 0% - - - - - - - 0%
Of which Transitional - 0% 0% - - - - - - - 0%
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned)
EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL
Manufacture of energy efficiency equipment for buildings CCM 3.5 20.8 24.7% EL N/EL N/EL N/EL N/EL N/EL 22.0%
Transport by motorbikes, passenger car, and light commercial vehicles CCM 6.5 15.4 18.4% EL N/EL N/EL N/EL N/EL N/EL 19.7%
Renovation of existing buildings CCM 7.2 1.0 1.2% EL N/EL N/EL N/EL N/EL N/EL 0.4%
Installation, maintenance, and repair of renewable energy technologies CCM 7.6 0.0 0.0% EL N/EL N/EL N/EL N/EL N/EL 0.3%
Product-as-a-service and other circular use and result-oriented models CE 5.5 9.7 11.6% N/EL N/EL N/EL N/EL EL N/EL 9.2%
CAPEX of taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)		 46.9 55.9% 79.3% 0% 0% 0% 20.7% 0% 51.6%
CAPEX of Taxonomy eligible activities (A.1+ A.2) 50.1 59.7% 74.2% 6.4% 0% 0% 19.4% 0% 55.8%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

CAPEX of Taxonomy-non-eligible activities 33.8 40.3%
Total 83.9 100%

The codes used in Sections A.1 and A.2 of the annex indicate that;

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.

OPEX

2024 Substantial contribution criteria DNSH
criteria
("Does
Not
Significantly
Harm")
Economic activities (1) Code (2) OPEX (3) Proportion of OPEX,
2024 (4)		 mate Change
Mitigation (5)
Cli		 mate Change
Adaptation (6)
Cli		 Water (7) Pollution (8) my (9)
Circular econo		 Biodiversity (10) mate Change
Mitigation (11)
Cli		 mate Change
Adaptation (12)
Cli		 Water (13) Pollution (14) my (15)
Circular Econo		 Biodiversity (16) m Safeguards
mu
Mini
(17)		 my
aligned (A.1) or eligible
(A.2) OPEX, 2023 (18)
Proportion of taxono		 Category enabling
activity (19)		 Category transitional
activity (20)
m€ % 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)
Computer programming, consultancy, and related activities CCA 8.2 1.4 6.4% N/EL Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 4.3%
OPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1) 1.4 6.4% 0% 100% 0% 0% 0% 0% Y Y Y Y Y Y Y 4.3%
Of which Enabling - 0% 0% 0% 0% 0% 0% 0% - - - - - - - 0%
Of which Transitional - 0% 0% - - - - - - - 0%
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned)
EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL
Manufacture of energy efficiency equipment for buildings CCM 3.5 13.6 62.1% EL N/EL N/EL N/EL N/EL N/EL 59.8%
Transport by motorbikes, passenger car, and light commercial vehicles CCM 6.5 2.7 12.3% EL N/EL N/EL N/EL N/EL N/EL 14.4%
Renovation of existing buildings CCM 7.2 1.5 6.8% EL N/EL N/EL N/EL N/EL N/EL 7.7%
Sale of second-hand goods CE 5.4 0.8 3.7% N/EL N/EL N/EL N/EL EL N/EL 3.8%
OPEX of taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)		 18.6 84.9% 95.7% 0% 0% 0% 4.3% 0% 85.7%
OPEX of Taxonomy eligible activities (A.1+ A.2) 20.0 91.3% 88.8% 7.2% 0% 0% 4.0% 0% 90.0%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

OPEX of Taxonomy-non-eligible activities 1.9 8.7%
Total 21.9 100%

The codes used in Sections A.1 and A.2 of the annex indicate that;

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.

1

E1 Climate change E2 Pollution E3 Water E5 Resource use and circular economy EU Taxonomy EU TaxonomyAccounting policy

Nuclear and fossil gas related activities

processes with minimal waste from the fuel cycle.

Nuclear energy related activities Yes/No

No

Share of taxonomy-eligible economic activities

The share of taxonomy-eligible economic activities is defined as the proportion of revenue, CAPEX, and OPEX derived from products, services, assets, or processes that qualify as environmentally sustainable activities.

Eligible and aligned economic activities

Nilfisk conducted a screening of the technical annexes of the Climate Delegated Act (Annex 1 on climate change mitigation and Annex 2 on climate change adaptation) and the Environmental Delegated Act (Annex I on sustainable use and protection of water and marine resources, Annex II on transition to a circular economy, Annex III on pollution prevention and control, and Annex IV on protection and restoration of biodiversity and ecosystems).

Based on this screening, a 'long list' of economic activities was created for further eligibility assessment. The screening process included evaluating potential revenue, CAPEX, and OPEX related to these economic activities.

Each economic activity on the 'long list' was assessed based on 1) How Nilfisk performs the economic activity 2) Financial and strategic materiality.

For Nilfisk, financial materiality is defined by the numerical value of revenue, CAPEX, or OPEX. Strategic materiality is determined by the strategic importance of the activity to Nilfisk, with criteria varying by activity.

Substantial contribution

For each eligible economic activity under the Climate Delegated Act and the Environmental Delegated Act, Nilfisk identified key internal stakeholders to assist in locating and collecting documentation to meet the alignment criteria. Nilfisk thoroughly reviewed the 'substantial contribution' criteria for all eligible economic activities.

Do no significant harm

Nilfisk reviewed the 'do no significant harm' criteria for all eligible economic activities.

Minimum social safeguards

For the aligned activity, Nilfisk documented the company's adherence to effective 'Minimum Social Safeguards'.

Revenue

In accordance with IFRS 15, revenue includes external net sales from contracts with customers associated with taxonomy-eligible activities. The revenue KPI is defined as taxonomy-eligible revenue (numerator) divided by total revenue (denominator).

CAPEX

CAPEX includes additions to property, plant and equipment (PPE) and intangible assets during the financial year. This includes additions to PPE (IAS 16), intangible assets (IAS 38) and right-of-use assets (IFRS 16). The CAPEX KPI is defined as taxonomy-eligible CAPEX (numerator) relating to category (a) and (c) divided by total CAPEX (denominator).

OPEX

OPEX consists of direct non-capitalized costs related to research and development, building renovation, short-term leases, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of PPE, right-of-use assets and intangible assets. The OPEX KPI is defined as taxonomy-eligible OPEX (numerator) relating to category (a) and (c) divided by total OPEX (denominator).

Double counting

To avoid double counting, Nilfisk identified relevant purchases and measures associated with primary related economic activities in the Climate Delegated Act and Environmental Delegated Act, ensuring that no revenue, CAPEX, or OPEX is calculated more than once.

Contribution to multiple objectives

Nilfisk assessed the potential for economic activities to contribute to multiple environmental objectives. Specifically, the scope of activity CCM 3.5 (Manufacture of energy efficiency equipment for buildings) was evaluated to determine if some activities should be reported under CE 1.2 (Manufacture of electrical and electronic equipment). For consistency and to improve taxonomy alignment, all associated activities are reported under CCM 3.5, with none under CE 1.2.

Nilfisk did not identify any other eligible economic activities contributing to multiple objectives.

Disaggregation of KPIs

There has been no disaggregation of revenue, CAPEX, or OPEX KPIs for any of the assessed economic activities.

2 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

The undertaking carries out, funds or has exposures to construction and safe operation of

The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear

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

3 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

MR SS FS

Social

103 S1 Own workforce

117 S2 Workers in the value chain

119 S4 Consumers and end-users

Nilfisk reports into Sedex, a global organization dedicated to driving improvements in ethical and responsible business practices in global supply chains. Having independent verification audits of our manufacturing sites support us in adhering to local and international best practice. In addition to supporting compliance, this also helps us become approved suppliers for our customers.

Own workforce

Nilfisk is dedicated to creating a fair, equal, healthy, safe, and engaging work environment, while respecting human rights throughout our value chain. This commitment fosters collaboration and drives long-term value for customers, communities, and employees.

Targets

Working times and social dialogue

High engagement levels foster reliable feedback on worklife balance and form the basis for social dialogues 90% employee participation in engagement survey

Health and safety

To keep number of recordable injuries low and aligned with international benchmarks Recordable injury frequency rate below 10.5

Progress towards 2025 target

Diversity

40% of underrepresented gender in top management To ensure equal representation in top management

Target set according to the definition of equal 37.5% of underrepresented gender in Board of Directors

representation in Danish legislation for a board consisting of eight people

Progress towards 2027 target

Measures against violence and harassment in the workplace

50% employees and 95% managers trained on harassment and discrimination Trainings aim to be a preventive measure

Progress towards 2027 target

95%

Training and skills development

0%

25% employee participation in regular performance development reviews

Engaging employees in dialogue to ensure focus on personal development and retention

Progress towards 2025 target

General information on own workforce

The following section details Nilfisk's position on human and labor rights, engaging with our workforce, and remediation and channels to raise concerns. All these aspects are seen in the context of Nilfisk's own workforce.

Human and labor rights

Nilfisk's global human rights policy, encompassing labor rights, extends across our entire value chain, including our own workforce. In S2 - Human and labor rights, we describe our policy and process to ensure alignment with global human rights frameworks and the active upholding of these standards. Employee engagement on human rights is facilitated through dialogue processes between employees and managers. Further details can be found in S1 – Social dialogue.

Human rights and related policies

The Human Rights policy, alongside related policies for Working Time, Labor and Employee Rights, Privacy, Training and Skills Development, Health & Safety, Diversity, Equity and Inclusion, and Harassment and Discrimination, guide Nilfisk's commitments to our workforce, including:

  • Just and favorable conditions of work
  • Equal treatment and non-discrimination
  • Right to form and join trade unions
  • Right to rest and leisure
  • Safe and healthy working conditions

We operate in countries at risk of human trafficking, forced labor, and child labor, particularly at our manufacturing sites in China and Mexico. Nilfisk Human Rights policy provides clear guidance and strictly prohibits any violations related to these issues.

Nilfisk offers measures to provide and/or enable remedy for human rights impacts through a process available to our own workforce. Read more in G1 - Business conduct.

Sedex audits on own sites

In 2024, Nilfisk introduced Sedex sustainability verification audits of own operation, focusing on major manufacturing sites. These audits cover Labor Standards, Health & Safety, Business Ethics, and Environmental practices.

Our cooperation with Sedex helps confirm our commitment to our local sites, employees, and local management. Sedex audits support Nilfisk in adhering to local legislation and international standards. Audit reports will be available to our customers upon request.

Engaging with our own workforce

Nilfisk is dedicated to fostering an inclusive culture where employees feel safe to voice concerns. This commitment underpins our approach to workforce engagement and decision-making. By following the principles outlined in our Code of Conduct we ensure that our practices do not cause or contribute to material negative impacts on our workforce.

Fixed interactions drive dialogues

Nilfisk conducts quarterly global town hall meetings, bi-annual engagement surveys, works council meetings, health and safety committee meetings, and annual performance conversations. These initiatives facilitate dialogue between the leadership team and employees, enhancing engagement, well-being, and performance.

For further information about how Nilfisk engages with our own workforce, read more in the Social dialogue and Training and Skills Development sections. The EVP, Head of People, Organization, and Culture, and The Nilfisk Leadership Team ensure workforce engagement is promoted and feedback is integrated into the decisionmaking process.

Remediation and channels to raise concerns

Nilfisk encourages employees to report concerns through our grievance mechanisms, including direct reporting to managers, HR Business Partners, our Global Compliance Officer, or via Nilfisk's whistleblower system. Each grievance is investigated thoroughly, and retaliation against good faith reporters is prohibited, as outlined in our Code of Conduct and Whistleblower policy.

We ensure employees are aware of these mechanisms through policy guidelines and communication campaigns. Our Code of Conduct emphasizes the protections available to those who raise concerns.

The effectiveness and trust in Nilfisk's grievance mechanisms are assessed through bi-annual employee engagement surveys, where employees rate their confidence in our response to serious misconduct.

Read more about remediation and channels to raise concern in section G1 – Business conduct.

Policies and actions

Working time

Nilfisk has identified a risk related to high workload. To manage this risk and mitigate its negative impact, we have developed policies and actions focused on governing the planning of working hours and implementing systems that enhance transparency.

We believe that clear policy guidelines on working hours are essential to fostering a sustainable work environment. By setting limits on working hours, we protect the well-being of our employees and ensure a satisfactory work-life balance.

POLICIES

Working Hour policy

Nilfisk's Working Hour policy, approved by the EVP Head of People, Organization, and Culture, is reviewed annually. It limits working hours to a maximum of 48 hours per week, including overtime, or less if local legislation requires. Night shifts are minimized and only scheduled when necessary, with evaluations of employee impact and provisions for additional support and compensation.

The policy ensures compliance with local labor laws and international guidelines, including the EU Working Time Directive and International Labour Organization standards on fair working conditions, reasonable working hours, rest periods, and overtime practices. It adheres to Ethical Trading Initiative standards and applies to all Nilfisk's business areas, except production units where local laws take precedence. Material IRO Material IRO

ACTIONS

Time tracking system

Nilfisk is implementing time tracking systems in EU countries where required by law to enhance transparency and ensure compliance. Full implementation in Denmark, Hungary, Germany, and Spain is targeted by the end of 2025, with continued roll-out as per EU laws. This will help manage deviations from the Working Hour policy. In 2025, Nilfisk will set a target for reducing night work.

Monitoring work-life balance

We use our bi-annual employee engagement survey and whistleblower process to gather input on work-life balance and working hours concerns. Based on feedback, we implement changes to enhance employee well-being. Quarterly Health and Safety evaluations will ensure employees working long or irregular hours are not exposed to undue risks.

Social dialogue, collective bargaining, and freedom of association

Nilfisk has identified a risk of employee turnover and lower productivity related to social dialogue, collective bargaining, and freedom of association. We manage these risks through policies, actions, and targets supported by a robust governance structure.

POLICIES

Labor and Employee Rights policy

We uphold workers' rights to collective bargaining and union membership as outlined in our Code of Conduct and Labor and Employee Rights policy. Where required by regulations or unions, our employees are covered by collective agreements. In 2024, over 1,300 employees were covered by collective agreements on working conditions. We engage in social dialogue with employees and unions to identify health, safety, and worker-related concerns. The policy is reviewed annually to ensure compliance with legislation and standards, with approval and accountability resting with the EVP, Head of People, Organization, and Culture.

ACTIONS

Works councils

Nilfisk supports workforce engagement through countrybound works councils, where mandatory.

These councils provide forums for information, dialogue, and consultation on workforce-impacting decisions. The Nilfisk Leadership Team meets with the European Works Council at least once a year, often four to five times annually, with six employees representing over 1,300 colleagues. These councils are crucial for voicing employee feedback.

Employee engagement survey

Our bi-annual engagement survey, available to all employees, provides valuable feedback and serves as a dialogue tool for managers and teams. It assesses how work-related factors influence engagement, well-being, and performance. Managers are responsible for implementing corrective actions based on survey results.

Employee Health and Safety Committees

Employee Health and Safety Committees, established where required, provide a platform for discussing critical safety, environmental issues, and health issues affecting employees and business continuity.

Our actions will continue into 2025. Nilfisk assesses the effectiveness of these initiatives through employee engagement participation ratings and results from various employee representative meetings. While we do not have specific targets for freedom of association and collective bargaining, we recognize their importance and continuously evaluate the need for such targets. The target relating to employee engagement survey participation covers social dialogue and can be found in the target section.

Adequate wages

Health and safety

Nilfisk has identified a risk of employee turnover and lower productivity from in-adequate wages. Actions are developed to manage the risk by governance of adequate wage levels.

POLICIES

Nilfisk values adequate wages and is developing the foundations and data structures needed to establish relevant guidelines. We plan to implement a policy on adequate wages by 2025 with relevant targets to ensure adequate wages.

ACTIONS

Nilfisk is committed to fair remuneration, ensuring all employees receive at least the minimum statutory wage or market-based pay where no minimum exists. We use a global approach to job architecture and pay structures to ensure employees are paid within defined ranges.

In 2024, we began assessing our living wage status, a process continuing into 2025 to optimize global wage data and enhance salary coverage, though effectiveness is not yet formally tracked.

Material IRO Material IRO

Nilfisk has identified actual and potential negative impacts from workplace accidents, resulting in negative effects on an individual, increased sick days, and a drop in productivity.

We have policies, targets, ISO 45001 standards, trainings, incident reporting, governance and escalation processes in place to mitigate the impact of the negative impacts. We recognize that failing to manage this will expose us to a financial risk.

POLICIES

Code of Conduct

Nilfisk's Code of Conduct includes overall health and safety policies, detailed in rule no. 7. Read more in section G1 - Business conduct.

Occupational Health and Safety policy

The Occupational Health and Safety policy and our Global Health and Safety manual provide guidelines for safe, supportive workplaces. The EVP Head of Operations oversees compliance and improvement. Employees receive comprehensive training during onboarding. The Global Head of Environment, Health, and Safety (EHS) drives our strategy, aiming for ISO 45001 certification at relevant sites.

PROCESSES

Our commitment to health and safety starts with transparent incident reporting. Employees are encouraged to report all safety incidents through our HR system, allowing us to address issues, analyze trends, and implement preventive measures.

Manager responsibilities

At all Nilfisk locations, Site Safety Partners promote a health and safety culture, address local concerns, and reinforce standards. Monthly global EHS meetings include on-site health and safety dialogues.

The Nilfisk Leadership Team prioritizes health and safety initiatives, promoting a culture where safety is everyone's responsibility. The responsible General Manager ensures engagement and actions based on local regulations.

Identifying safety concerns

Employees are encouraged to use our whistleblower system to report any health and safety concerns. More information is available in section G1 - Business conduct.

ACTIONS

In 2024, Nilfisk launched key initiatives to improve health and safety reporting, culture, and practices:

  • Appointed and trained Site Safety Partners for local accountability.
  • Implemented a standard Safety Incident reporting tool.
  • Promoted a proactive safety culture with near-miss reporting and online training.
  • Provided targeted training on mental health, driver safety, office safety, and services.
  • Enrolled all sites in the global Health and Safety manual.

The standard safety reports provide KPIs to track performance and inform improvement points, from which the health and safety targets are defined.

ISO 45001 certification

In 2023, we initiated ISO 45001 certification preparations at four manufacturing sites and one R&D site, completing them in 2024, achieving five additional certifications. In 2025, we will expand the EHS Global Operations team and implement an EHS Management Dashboard for real-time insights.

Number of ISO 45001 certified sites
2023 1
2024 6

Diversity

Material IRO

Nilfisk has identified an actual positive impact from diversity, social equity, and equal treatment, fostering innovation and a culture of inclusion. We have identified an inherent financial and reputational risk from not complying with regulatory requirements on reporting. Policies, actions, and targets are developed to advance positive impact.

POLICIES

Code of Conduct and DE&I policy

We recognize that a diverse workforce and inclusive culture strengthen our company. Our commitment to diversity, equity, and inclusion is outlined in our Code of Conduct and Global Diversity, Equity, and Inclusion policy, reviewed bi-annually and overseen by the EVP Head of People, Organization, and Culture.

This policy ensures compliance with laws and standards, providing equal opportunities and fostering an inclusive work environment through initiatives that foster a culture that embraces the unique characteristics of our workforce. It promotes non-discriminatory employment practices and supports diversity through local actions, including targeted recruitment of vulnerable and marginalized groups.

ACTIONS

E-learning training

In 2024, Nilfisk launched e-learning programs to support policy implementation and educate employees to foster a diverse, equitable, and inclusive workplace. These programs address biases and strategies for ensuring psychological safety. More than 1,000 employees completed the training, which continues in 2025, provided in additional local languages.

Diversity in recruitment

We focus on minimizing bias and promoting diversity, equity, and inclusion in our recruitment process. In 2025, we will introduce guidelines for the recruitment of management positions to ensure an unbiased process, aiming to positively impact the share of the underrepresented gender.

Supporting performance and development

Our people review process serve as a leadership tool to support performance and development. In 2024, training sessions established a uniform, inclusive process aimed at reducing unconscious bias to ensure a fair evaluation process.

Additionally, the 'Women of Nilfisk' network in the US supports, develops, and educates female employees, fostering a sense of community and the sharing of best practices.

Diversity in management

Diversity in management is a driver for change in the broader Nilfisk diversity agenda. We communicate and set targets accordingly to establish a path for the remaining organization to follow.

Measures against violence and harassment in the workplace

Material IRO

Nilfisk has identified workplace harassment as a negative impact. We have developed policies, actions, and targets to manage this risk and foster a culture of equal treatment. Failing to address this is a risk for Nilfisk.

Awareness and training

Nilfisk is committed to raising awareness about harassment and discrimination. The zero-tolerance policy will be made available to all employees during the first half of 2025 with global roll-out of training for managers and employees by 2026 to ensure workplace issues are recognized and addressed promptly.

POLICIES

Code of Conduct and Global Harassment and Discrimination policy

Nilfisk is committed to a safe, healthy, and inclusive workplace where employees are treated with respect and dignity, enhancing collaboration and innovation. Nilfisk has a zero-tolerance policy for harassment, discrimination, bullying, or differential treatment. Our Code of Conduct and Global Harassment and Discrimination policy, reviewed annually, ensure compliance with legislation and standards. The EVP Head of People, Organization, and Culture oversees this policy.

ACTIONS

Grievance mechanisms

Employees are encouraged to report harassment or violence through our grievance mechanisms. See sections S1 and G1 for more details.

Gender equality and equal pay

Nilfisk has identified a gender pay gap and is taking action to ensure equal pay through governance and processes, recognizing that failing to close the gap exposes Nilfisk to the risk of losing employees.

POLICIES

MR SS FS

We are developing the foundations and data structures for relevant guidelines and continuously assess the need for an equal pay policy. Our current actions describe our approach.

ACTIONS

Job architecture framework

At Nilfisk, equal pay for equal work is fundamental. We ensure fair compensation based on skills, experience, and contributions, regardless of gender or personal characteristics. Our job architecture framework supports equal pay throughout the employment process, from hiring to promotion.

Salary disparity efforts

In 2024, the unadjusted gender pay gap improved to 19% from 21% in 2023 due to efforts in reducing salary disparities during merit processes, recruitments, and promotions. As part of the merit process we ensure training for managers to inform of the importance of closing gender pay gaps and prioritizing salary increases that drive development.

Pay gap monitoring efforts

In 2025, we will review our job architecture and pay ranges, ensuring high data quality. We will monitor gender pay gaps and plan corrective actions by year-end. While we do not have specific targets for equal pay, we continually evaluate the need for them and will plan further actions based on 2025 outcomes. Currently, the effectiveness of these actions is not formally tracked.

Material IRO Material IRO

POLICIES

Training and Skills Development policy

Training and skills development

The Nilfisk Training and Skills Development policy integrates learning and skills development into the way we work, to drive positive workforce impact and business growth. The policy is applicable for all employees. The policy, reviewed annually, is overseen by the Global Head of Learning and Development and approved by the EVP Head of People, Organization, and Culture. We enhance training to improve well-being, job satisfaction, retention, and performance, committing to continuous learning and adapting to evolving skill requirements.

Nilfisk has identified a positive impact from training and skills development initiatives. Our policies, actions, and targets support learning and development, recognizing that failing to follow these processes poses a risk.

ACTIONS

70-20-10 model for training and development

Nilfisk bases training on the 70-20-10 model: 70% from experience, 20% from interactions, and 10% from formal education. We ensure continuous learning, and provide a process that supports the formalization of personal development plans. Our Learning Management System provides ongoing training, supporting our commitment to development.

We have set internal targets for questions related to learning and development in the bi-annual employee engagement survey to ensure that we maintain high standards. Additionally, we have set a target to ensure employee participation in regular performance development reviews.

Training leaders

Leaders are trained in value-based performance dialogues, with HR Business Partners supporting leaders in this process. Leadership training and English language courses are offered to enhance capabilities and promote inclusion, ensuring all employees benefit from our learning solutions.

Mandatory trainings available in local languages

As a global company, we speak many languages. Nilfisk offers all mandatory training in predominant local languages to ensure accessibility and value of the training.

Material IRO

Nilfisk has identified a GDPR compliance risk regarding our workforce's personal information. We have developed policies and actions to manage this risk and mitigate any negative impact through effective data governance.

POLICIES

Data Privacy policy

Nilfisk adheres to Denmark's Data Ethics Council's principles and values. As we embrace digital transformation, data handling and safeguarding are both compliance requirements and ethical practices. Robust cybersecurity and data protection are seen as both duty and advantage.

We ensure GDPR compliance by using a tool to map global databases and document processes. We also comply with other data privacy laws, processing only necessary personal data, treating it confidentially, and limiting access on a need-to-know basis. The Data Privacy policy, applicable to all employees, is reviewed regularly and communicated to stakeholders upon update. The Global Head of Compliance holds approval and accountability for the policy

ACTIONS

Training

Nilfisk ensures GDPR compliance by informing employees of policies and providing access to their data. GDPR compliance is part of our Code of Conduct, and new employees must complete data privacy training. Read more in section G1 - Business conduct.

Automated deletion of personal data

By 2025, we will implement an automatic process to delete personal data after employment ends, adhering to local data retention laws. The effectiveness of these policies and actions is not currently tracked. For targets relating to privacy and personal information, refer to sections S4 and G1.

Privacy Progress on targets

Working times and social dialogue targets

Employee engagement survey participation
Data indicator Unit 2024 Target 2025
Employee engagement survey participation rate % 88.5% 90 %

Nilfisk is dedicated to collecting employee feedback on work-life balance and fostering positive social dialogue. We aim to maintain high engagement in our global employee engagement survey, targeting at least 90% global participation in 2025. This represents an increase from the baseline value of 88.5% in 2024.

Health and safety targets

Recordable injury frequency rate

Data indicator Unit 2024 Target 2025
The recordable injury frequency rate (TRIFR) Rate 5.7 Below 10.5

Nilfisk prioritizes setting health and safety targets to promote employee well-being and enhance operational efficiency at our sites. The targets support these objectives and ensure a safe and productive environment for all our employees. In 2024, the recordable injury frequency rate was 5.7, which surpassed the target.

The target has been set by our Global Health and Safety Manager in collaboration with local Health and Safety Managers representing the Nilfisk workforce and is monitored monthly. For accounting policies related to this target, see S1-14 in the Metrics section.

Accounting policy

Employee engagement participation rate

Nilfisk conducts two global employee engagement surveys annually. The engagement survey participation rate is calculated by dividing the number of employees who completed the survey by the total number of employees who received it, representing the average participation rate from

both surveys in the reporting year. Participation is recorded directly in the online employee engagement tool, and data is collected from this tool.

The target has been set in in consultation with key internal stakeholders.

Diversity targets

Gender diversity at top management levels

Data indicator Unit 2024 Target 2026 Target 2030
Male % 69% 66% 60%
Female % 31% 34% 40%

Nilfisk's mid-term target aims to have 34% of the underrepresented gender in top management by 2026, and our long-term ambition is to have equal representation, i.e., a minimum of 40% of the underrepresented gender in top management by 2030. During 2024, the share of the underrepresented gender in top management increased to 31% which is in line with expectations for the overall trajectory towards the 2026 and 2030 target. For accounting policies related to this target, see S1-9 in the Metrics section.

Gender diversity in the Board of Directors

Data indicator Unit 2023 2024 Target 2027
Male % 75% 86% 62.5%
Female % 25% 14% 37.5%

In 2023, Nilfisk's Board of Directors set a target for the underrepresented gender among shareholder-elected board members to constitute 37.5% by no later than 2027. In 2024, the departure of one female board member reduced the total number of board members to seven, thereby decreasing the share of female to male representation.

Nilfisk monitors its gender diversity targets on a quarterly basis, and results are presented to the Nilfisk Leadership Team.

Accounting policy

Gender distribution in the Board of Directors

Gender distribution is calculated based on the number of shareholder elected board members per gender, relative to the total number of board members at the end of the reporting period. The target of 37.5% is within the definition of equal representation in Danish legislation for a board consisting of eight people.

Training on harassment and discrimination

The percentage of managers and employees that have completed the global training on harassment and discrimination is calculated as the absolute number of managers/employees that completed the training in the reporting year, divided by the total number of managers/ employees at the end of the reporting year. All targets have been set in consultation with key internal stakeholders.

Training and skills development targets

Performance and development reviews Data indicator Unit 2024 Target 2025 Employees who participated in regular performance and development reviews % 12.4% 25%

Nilfisk has set a target to improve the completion level of performance and development dialogues and ensure that a minimum of 25% of employees have participated in regular performance and career development reviews. For accounting policies related to this target, see S1-13 in the Metrics section.

Measures against violence and harassment targets

Training on harassment and discrimination

Data indicator Unit 2024 Target 2027
Training completion rate - managers % - 95%
Training completion rate - employees % - 50%

Nilfisk's target is designed as a preventive measure to progressively drive awareness and training on harassment and discrimination. By 2027, 95% of all managers and 50% of employees are expected to have completed training on harassment and discrimination which will be launched in 2025. The target is established through benchmarking similar initiatives, and assumptions are based on system availability to support the implementation. The target has been approved by the EVP, Head of People, Organization, and Culture.

Metrics

S1-6 Characteristics of Nilfisk's employees

Headcount per gender and category
2024 Unit Female Male Other Not disclosed Total
Permanent employees Number 1,218 3,183 1 4 4,406
Temporary employees Number 132 223 - 52 407
Non-guaranteed hours employees Number - - - - -
Total employees Number 1,350 3,406 1 56 4,813
2023 Unit Female Male Other Not disclosed Total
Permanent employees Number 1,148 3,061 3 1 4,213
Temporary employees Number 139 283 - 40 462
Non-guaranteed hours employees Number - 1 - - 1
Total employees Number 1,287 3,345 3 41 4,676

Total headcount increased by 137, corresponding to 3.0%. The number of female employees increased by 63, corresponding to 5.0%, while the number of male employees increased by 61, corresponding to 1.8%. Hungary, the US, and China each account for more than 10% of the Nilfisk workforce. In Hungary, the employee headcount grew by 63, corresponding to an increase of 8%, primarily due to an increase in production headcount and relocation of back-office employees to our shared service center. Meanwhile the employee headcount in the US and China declined by 9% and 2%, respectively, due to cautious hiring practices. The remaining increase was mainly due to investments across service and R&D.

Unit 2024 2023
Hungary Number 862 799
US Number 683 749
China Number 592 605
Rest of the world Number 2,676 2,523
Total Number 4,813 4,676

Employees who have left the company

Unit 2024 2023
Employees who have
left the company		 Number 822 833
Employee turnover -
all employees		 % 17% 18%
Employee turnover -
permanent employees		 % 15% 16%

Accounting policy

Total employee headcount

Total headcount at the end of the reporting period is defined as the number of individuals employed by Nilfisk, and which perform work for its entities at the end of the reporting period, irrespective of the extent of working hours (full-time/part-time). The data excludes contingent workers (non-employees), employees with a non-active worker status (on leave) and terminated employees. The principle serves as an overarching principle for the following metrics:

  • Headcount per gender: Categorized by gender.
  • Headcount of permanent employees: Those without a predetermined end date, categorized by gender.
  • Headcount of temporary employees: Those with a predetermined end date, categorized by gender.
  • Headcount of non-guaranteed hours employees : Those without guaranteed working hours, categorized by gender.
  • Headcount per country: Includes countries with 50+ employees, representing at least 10% of the total workforce.
  • Employees who have left the company: Total number of employees who left during the reporting period, excluding contingent workers.
  • Employee turnover is calculated by dividing the number of employees who left (voluntarily or involuntarily) during the reporting period by the average number of employees for that period. The average number of employees is determined by adding the starting and ending employee counts and dividing by two. This includes both active and on-leave employees.

The total headcount cannot be reconciled with Note 3.1 of the Financial Statements, as it represents full-time equivalents.

S1-7 Characteristics of non-employees in the undertaking's own workforce

Headcount of non-employees
Data indicator Unit 2024
Non-employees in own workforce - self-employed people Number 85
Non-employees in own workforce - people provided by undertakings primarily
engaged in employment activities		 Number -
Total non-employees Number 85

S1-8 Collective bargaining coverage and social dialogue

Collective bargaining agreement coverage
Data indicator Unit 2024
Employees covered by collective bargaining agreements % 27%
Coverage rate Collective bargaining coverage Social dialogue
Data indicator Employees - EEA (for countries with
> 50 empl. Representing > 10% empl.)		 Employees - Non-EEA (estimate for
regions with > 50 empl. Representing
> 10% total empl)		 Workplace representation (EEA
only) (for countries with >50 empl.
Representing >10% total empl)
0-19% - APAC -
20-39% - Americas -
40-59% - - -
60-79% - - -
80-100% - - -

Headcount of non-employees

Non-employees are contingent workers providing work for Nilfisk but not on Nilfisk payroll. Total headcount at the end of the reporting period defined as the number of individuals contracted by Nilfisk, and who perform work for its entities at the end of the reporting period, irrespective of the extent of working hours (full-time/part-time).

Accounting policy Accounting policy

Collective bargaining agreement coverage

The overall percentage of employees covered by collective bargaining agreements or workplace representation is provided for each country where Nilfisk has significant employment, defined as having at least 50 employees, representing at least 10% of the total workforce. Outside the EEA, this percentage is reported by region.

The percentage is calculated by dividing the number of employees covered by collective bargaining agreements in each country by the total number of employees in that country.

Workplace representation

The percentage is calculated as the number of employees covered by worker's representatives in each country divided by the total number of employees in the country.

S1-9 Diversity metrics

Gender distribution at top management levels

Data indicator Unit 2024 2023 Target 2030
Male Number & % 42 69% 44 70% 60%
Female Number & % 19 31% 19 30% 40%
Total Number & % 61 100% 63 100%

Distribution of employees by age group

Data indicator Unit 2024 2023
Under 30 years old Number & % 543 11% 514 11%
30-50 years old Number & % 2,927 61% 2,899 62%
Over 50 years old Number & % 1,343 28% 1,263 27%
Total Number & % 4,813 100% 4,676 100%

S1-10 Adequate wages

Countries where employees earn below the applicable adequate wage benchmark and percentage of employees paid below applicable adequate wage benchmark

Data indicator Unit 2024 2024
Singapore Number of employees & % 2 7.4%
Total Number of employees & % 2 0.1%

Gender distribution at top management levels

Gender distribution is based on the employee headcount per gender, at top management levels, relative to the total employee headcount at these levels at the end of the reporting period. Top management levels are defined as the highest-ranking management level (the Nilfisk Leadership Team) and their direct reports who have people management responsibilities, including employees on leave.

Distribution of employees by age group

Age distribution is determined by the employee's date of birth, relative to the total headcount.

Countries where employees earn below the applicable adequate wage benchmark

List of countries where at least one employee is paid under the adequate wage published by Wageindicator.org. The published wage is compared to the employee's Total Base Pay. The percentage is calculated as the absolute number of the employees paid under the adequate wage in a given country divided by the total number of the employes in the country.

S1-11 Social protection

Employees covered by social protection through public programs or through benefits offered by Nilfisk, against loss of income due to any of the following major life events:

Data indicator All employees
covered
Sickness Yes
Employment injury and acquired disability Yes
Parental leave Yes
Retirement Yes
Unemployment starting from when the own worker is working from
the undertaking		 No*

*The following countries are not covered by protection: Hong Kong and Japan. The following countries are only covered in case of involuntary termination: Argentina, Mexico, Australia, India, New Zealand, Singapore, Czech Republic, Greece, Italy, Portugal, Spain, Türkiye, and United Arab Emirates

S1-12 Persons with disabilities

Employees with disabilities
Data indicator Unit 2024
Percentage of employees
with disabilities		 % 0.5%

S1-13 Training and skills development metrics

Total employees who participated in regular performance and development reviews per gender and average number of training hours per gender

Data indicator Unit 2024 Target
2025
Male % & hours 12.5% 1.4
Female % & hours 12.7% 1.8
Non-binary % & hours - -
Not declared % & hours 2.4% 1.0
Total % & hours 12.4% 1.5 25%

Accounting policy

Social protection coverage through public programs or through benefits offered by Nilfisk against loss of income

List of countries where at least one employee is not covered by social protection, the countries and the types of employees excluded are specified.

Accounting policy

Persons with disabilities

The percentage of employees with disabilities is calculated as the number of employees with disabilities divided by the total number of employees. Persons with disabilities is defined as employees that have reported a disability and provided supporting documentation based on the countries' legislation.

Accounting policy

Employees who participated in regular performance and development reviews per gender

The percentage is calculated as the absolute number of the employees that completed the yearly performance and career review divided by the total number of the employees invited to the review (total employee headcount on the day of starting the review).

Average number of training hours per gender

The average number of training hours is calculated as the total training hours at the end of the reporting period divided by the total number of employees who completed any training in Nilfisk's Learning Management System, categorized by gender.

S1-14 Health and safety metrics

Percentage of people in its own workforce who are covered by health and safety management system based on legal requirements and (or) recognized standards or guidelines

Data indicator Unit 2024
Employees % 26.5%
Non-employees % 0.8%
Total % 27.3%

Number of fatalities as result of work-related injuries and work-related injuries and work-related ill health

Data indicator Unit 2024
Own workers Number -
Other workers working on Nilfisk's sites Number -

Number and rate of recordable work-related accidents for own workforce

Data indicator Unit 2024 Target 2025
Employees Number/rate 49 5.7 Rate below 10.5
Non-employees Number/rate - -

Number of cases of recordable work-related ill health of employees

Data indicator Unit 2024
Employees Number -
Non-employees Number -

Number of days lost to work-related injuries and fatalities from work-related accidents, work-related ill health, and fatalities from ill health related to employees

Data indicator Unit 2024
Employees Number 1,617
Non-employees Number -

Accounting policy

Percentage of people in its own workforce who are covered by health and safety management system

The percentage of employees that are covered by a health and safety management system, defined as the employee headcounts working at a site that is ISO45001 certified by an external certification divided by the total number of employees at the end of the reporting period.

Number of fatalities as result of work-related injuries and work-related injuries and work-related ill health

The number of fatality cases involving Nilfisk employees or contractors working on a Nilfisk site, as reported through Nilfisk's Safety Incidents application.

Number and rate of recordable work-related accidents

The number of cases resulting in a recordable injury, as reported through Nilfisk's Safety Incidents application. The rate measures the number of recordable injuries in relation to total hours worked (TRIFR = Number of recordable injuries in a defined period x 1,000,000 / total worked hours in the same defined period).

Number of cases of recordable work-related ill health

The number of cases resulting in a recordable work-related ill health, as reported through Nilfisk's Safety Incidents application.

Number of days lost to work-related injuries and fatalities from work-related accidents, work-related ill health and fatalities from ill health

The number of work-related lost days, as reported through Nilfisk's Safety Incidents application.

All data relating to health and safety incidents is collected directly from Nilfisk's Safety Incidents application.

S1-15 Work-life balance metrics

Percentage of entitled employees that took family-related leave Data indicator Unit 2024

Percentage of employees entitled to take family-related
leave		 % 97%

Percentage of entitled employees that took family-related leave by gender

Data indicator Unit 2024
Male % 9%
Female % 12%
Total % 10%

S1-16 Remuneration metrics

Gender pay gap as the average pay levels between female and male
Data indicator Unit 2024 2023
Gender pay gap % 19% 21%

The annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all employees

Data indicator Unit 2024 2023
Annual total
remuneration ratio		 Ratio 52:1 62:1

S1-17 Incidents, complaints and severe human rights impact

Incidents Data indicator Unit 2024 Number of incidents of discrimination, including harassment Number 5

Other than stated above, no additional complaints have been filed through the designated channels for raising concerns, related penalties, or compensations. Additionally, there have been no severe human rights issues, incidents, or related fines.

Percentage of employees entitled to take family-related leave

The percentage is calculated as the number of employees entitled to familyrelated leave divided by the total number of employees.

Percentage of entitled employees that took family-related leave by gender

The percentage is calculated as the number of employees that took familyrelated leave divided by the total number of employees, categorized by gender.

Accounting policy Accounting policy Accounting policy

Gender pay gap

The unadjusted gender pay gap is the difference between the average gross hourly earnings of men and women, expressed as a percentage of men's average gross hourly earnings. This average is calculated from the total base salary, excluding other compensation (e.g., allowances, target bonuses). The calculation excludes employees on leave.

Annual total renumeration ratio

The annual total remuneration ratio is calculated by dividing the CEO's annualized compensation (including base salary, short-term, and long-term incentives) by the median employee compensation (including base salary and target incentives) at year-end.

Incidents, complaints, and severe human rights impacts

The number of incidents, complaints, and severe human rights incidents reported via the whistleblower system or internally.

Workers in the value chain

Nilfisk respects human and labor rights and actively seeks to reduce the risk of adverse impact on workers in our value chain in collaboration with our global network of suppliers

Targets

Value chain workers

70% of selected suppliers signed Supplier Code of Conduct To minimize business risk

Progress towards 2030 target

2024

N/A

General information on workers in the value chain

This section presents a detailed introduction to Nilfisk's position and activities on human and labor rights across the value chain. Value chain workers materially impacted by Nilfisk's business model are those in the upstream supply chain. Typically, these workers are engaged in the manufacturing and mining industries, often in regions with a high risk of workers' rights violations.

Human and labor rights

Our commitment to upholding human rights, including labor rights, is outlined in our Global Human Rights policy and our Supplier Code of Conduct

Human Rights policy

2025

70%

We expect the companies we work with to run their business responsibly. We require our partners to comply with national laws and adhere to international labor and human rights standards, including the UN Guiding Principles on Business and Human Rights, the International Labour Organization Declaration on Fundamental Principles and Rights at Work, and the Ten Principles of the UN Global Compact.

Our updated 2024 Human Rights policy encompasses all aspects of human rights for our own operations and value chain. The policy is designed to address adverse human rights impacts within Nilfisk's sphere of influence. Nilfisk will prioritize its actions based on material topics identified in the DMA. The policy details prioritization of human rights impacts based on their severity and likelihood.

Nilfisk commits to taking appropriate actions to address any adverse human rights impacts identified in our value chain. The policy emphasizes the importance of informing and training employees, business partners, and other key stakeholders about Nilfisk's human rights commitments and expectations as well as details a six-step process based on the OECD Due Diligence Guidance for Responsible Business, to ensure alignment with global human rights frameworks.

The policy is available to all stakeholders on Nilfisk's corporate intranet and websites and is part of our broader commitment to sustainability and ethical business practices. Implementation responsibilities lie with the EVP, Head of People, Organization & Culture, for our own operations, and the EVP, Head of Marketing, Sustainability & Consumer Business, and the EVP, Head of Operations for value chain workers.

Supplier Code of Conduct

The Supplier Code of Conduct, updated in 2024, outlines our human rights commitments and expectations for all suppliers, and is part of the contractual obligation with our direct suppliers. It aligns with our Code of Conduct, providing clear guidelines on climate, environment, health, safety, diversity, inclusion, and labor rights, including forced labor, child labor, and human trafficking. Should a supplier fail to meet these requirements, or if audits reveal nonconformities, Nilfisk will work with them to improve performance or, if necessary, end the collaboration. The EVP, CFO, owns this policy.

Nilfisk engages indirectly with value chain workers through different processes.

Assessment of new suppliers

All new direct suppliers undergo an approval process that includes answering questionnaires on sustainability, legal, and compliance standards. Nilfisk's sustainability questionnaire collects information on how suppliers address ESG topics. In 2024, 395 suppliers were assessed for sustainability.

On-site audits - by Nilfisk and third party

Our primary form of engagement with value chain workers is through annual on-site assessments by the Nilfisk compliance team. In 2024, we conducted 25 assessments and interviews with high-risk suppliers. These interviews provide valuable insights into worker perspectives, particularly those vulnerable due to the nature of their work or location. In our regular supplier assessments (questionnaires and on-site audits), we request insights into labor conditions and specific management systems implemented by suppliers.

Focus areas include environmental and climate impacts, labor rights, health and safety, and anti-corruption. These interviews support ongoing supplier collaboration, leading to necessary improvements. Based on audit findings, we provide detailed training or guidance, strengthening performance and legal compliance in our value chain. Enhanced supplier compliance over recent years is due to increased global supply chain attention.

Nilfisk also assesses strategic suppliers through the Sedex Member Ethical Trade Audit performed by a third party. The Sedex platform ensures transparency on labor, health and safety, environmental, and business ethics conditions for key suppliers as well as our manufacturing sites. Engaging with value chain workers Value chain workers

Remediation and channels to raise concerns

Workers in Nilfisk's value chain can make use of existing channels to interact with Nilfisk.

Supplier Code of Conduct

The Supplier Code of Conduct sets clear expectations for our suppliers and business partners. It requires that their employees are able to report concerns through the suppliers' grievance mechanisms or Nilfisk's whistleblower system. In 2024, no violations of human rights issues have been reported or identified.

Whistleblower policy

The Whistleblower policy provides our value chain workers with a safe reporting mechanism, assures independent and fair assessment, and effective remediation proportionate to the occurred grievance. Read more about remediation and channels to raise concern in section G1 – Business conduct.

Policies and actions

Material IRO

Nilfisk has identified potential negative impacts to individual value chain workers in the supply chain on the matters of health and safety, workers' rights, gender inequalities, and harassment and violence at suppliers.

We make efforts to mitigate impacts and risks by having policies, actions, targets, and supplier due diligence processes. We recognize that a potential violation of workers' rights and right to privacy of supply chain workers expose us to reputational and operational risks.

The supplier network at Nilfisk is extensive, and that means our initiatives aimed at upholding standards for workers in the supply chain have a significant impact. We collaborate with numerous direct suppliers who contribute to our cleaning solutions. Additionally, we engage with a larger network of indirect suppliers globally that are not linked to the products.

POLICIES

Policies related to our value chain workers encompass both direct and indirect suppliers and are governed by the Supplier Code of Conduct and Human Rights policy. Read more in the previous section S2 – Human and Labor Rights.

PROCESSES

Supplier due diligence

Nilfisk applies a due diligence approach to address supplier risks, subdividing it into legal, compliance, and sustainability due diligence. These screenings are conducted for both current and new, direct and indirect suppliers.

When it comes to legal and reputational risks, we aim for annual screenings of all direct suppliers, a target met in 2024. These screenings support our compliance in anti-corruption, competition law, foreign trade controls, and sustainability, including environmental protection. To identify sustainability risks, Nilfisk screens direct and selected indirect suppliers based on a combination of spend and risk. In 2024, we defined high-risk categories on three dimensions: sourcing category, geographical area of production, and strategic importance.

ACTIONS

Actions towards suppliers

We are committed to creating decent jobs within our value chain and have introduced independent SMETA Audit which is the Sedex Members Ethical Trade Audit for selected strategic suppliers. The updated Supplier Code of Conduct will be extended to additional key suppliers, with a goal of having at least 70% of selected suppliers signing in 2025.

New Sustainable Sourcing policy

In 2025, we will establish a Sustainable Sourcing policy on our due diligence process for the coming Corporate Sustainability Due Diligence Directive (CSDDD). This will cover direct suppliers, detailing collaboration with value chain partners. To support this, we will join Ethical Trading Denmark.

Consumers and end-users

Nilfisk prioritizes customer health and safety by developing ergonomic cleaning solutions. These innovations enhance working conditions, address labor shortages, and reduce costs in the professional cleaning industry.

Trainings will uphold our defense against cyber threats 100% of new office employees to receive phishing training within three months of onboarding

Security of a person and health and safety

No product recalls

To avoid unacceptable levels of risks to end-user health and safety

Progress towards 2025 target

Targets Policies and actions

Privacy Human and labor rights

Nilfisk is committed to upholding human rights throughout our value chain, including customers and end-users. Our Human Rights policy, detailed in section S2 - Workers in the value chain, outlines a four-step process to ensure alignment with international standards and proactive efforts to maintain these standards.

Engaging with customers

We engage with customers to understand and address their needs. Our commitment to IT safety is reinforced through regulatory compliance. Nilfisk has received reports from our downstream value chain regarding product malfunctions and incidents that do not conform to health and safety standards. Nilfisk is investigating an allegation of a potential defect in one of our products that may have caused personal injury. We are diligently working to establish the facts and take appropriate action. To date, there have been no reports concerning privacy or access to information.

The Human Rights Policy, IT Security Policy, and Customer Health and Safety policy detail our commitments to the following human rights topics considered material to consumers and end-users:

  • Right to Privacy
    • Right to Access to Information
    • Right to Health and Safety

We offer remedies for human rights impacts through a process available to customers and end-users. Read more in section G1 - Business conduct.

Security of a person and health and safety

Material IRO

Nilfisk has identified a potential negative impact to security of end-users of professional floorcare products, addressing incidents typically involving single product malfunctions. We mitigate this by having processes, policies, targets, and product quality measures in place.

At Nilfisk, we prioritize high-quality cleaning solutions to ensure customer safety and mitigate risks. Our commitment to user health and safety drives us to prevent accidents and maintain secure working environments.

POLICIES

Customer Health and Safety policy

Our Customer Health & Safety policy is central to delivering high-quality cleaning solutions while ensuring customer well-being. This policy, overseen by the EVP, Head of Operations and the VP, Legal & General Counsel, is implemented by our Quality Assurance department.

Our governance structure ensures compliance with industry regulations and best practices. Our Quality and Environmental Management systems ensure we promptly address quality reports, including end-user health and safety observations. Quality and Product teams monthly oversee quality and safety reports, and the VPs of Quality and VP of Legal oversee our formal product incident management process.

S1 Own workforce S2 Workers in the value chain S4 Consumers and end-users S4 Consumers and end-users

The Code of Conduct rule no. 10 includes product certification and quality rules. Read more in section G1 - Business conduct.

PROCESSES

Quality from high testing standards

To integrate user perspectives, we have implemented detailed procedures under the oversight of Quality Assurance and the respective function. During product development, we prioritize safety by incorporating the latest technologies and collaborating with experts to mitigate risks. We maintain stringent quality control in our manufacturing facilities to ensure every product meets safety standards.

We collaborate with third-party organizations for thorough testing and certification, validating our products' safety and reliability. Regular reviews and updates to safety protocols, guided by customer feedback and industry advancements, drive continuous improvement initiatives.

Customer insights and training

Customer training is crucial for safe product usage. The collection of customer insights continuously informs product development, and we provide comprehensive training and support for our end-users.

ACTIONS

Various methods of testing

To prevent negative impacts, we invest significantly in product safety, including IT security, employee training, and activity monitoring. We plan to integrate new IT security measures and develop automated testing solutions to further safeguard our products and users.

New product launches

The 2025 launch of the Nilfisk Dryft, a micro-scrubber dryer, features a flexible and ergonomic design for user comfort. The 2024 launch of Nilfisk's SC550, a walk-behind scrubber dryer, offers high adaptability, simple user interface and ergonomics. It includes an adjustable steering column, smart presets, enhanced maneuverability, and robust durability. The SC550 is user-friendly, minimizes physical effort, maximizes productivity, and operates quietly for noise-sensitive environments.

Privacy

Material IRO Code of Conduct

IT safety is a top priority at Nilfisk, especially for new products, connectable machines, and e-commerce. Nilfisk identifies a risk in IT security breaches of machines, potentially affecting GDPR and privacy. Such breaches would negatively impact our reputation. We mitigate by having policies, actions, and governance activities in place to ensure appropriate activities and monitoring. Data storage safety is best practice for autonomous and data-enhanced machines.

POLICIES

IT Security policy

Nilfisk's IT Security policy, aligned with ISO 27001 & 27002, outlines measures for managing information security risks. The IT Security Steering Committee, led by the Chief IT Officer (CIO), owns and reviews the policy annually.

Information Security Vulnerability Disclosure policy

Our Information Security Vulnerability Disclosure policy promotes responsible disclosure for prompt action. Overseen by the Chief Information Security Officer (CISO), it facilitates external reporting of system vulnerabilities. Stakeholders can access our ambitions via the Code of Conduct, rule no. 2 and rule no. 11. Read more in section G1 - Business conduct.

PROCESSES

The terms for data collection, storage, and IT security for Nilfisk Autonomous machines are integral to all sales agreements governed by the CIO and CISO. GPS data is

treated as pseudonymized personal information with specific storage requirements. Customers are continuously advised on processing obligations via our website.

We acknowledge companies representing end-users as legitimate representatives for IT security information. All business relationships can raise concerns through corporate channels. External parties can report vulnerabilities on our website for prompt mitigation. Read more in section G1 - Business conduct.

ACTIONS

Cyber security training

Ensuring the security of our digital environment is a top priority. To protect customer data, all Nilfisk employees undergo cyber security training. This training leverages AI and behavioral science for personalized sessions. Cyber security trainings were an ongoing activity in 2024 with no end date.

The Information Security Team also conducts tailor-made training for specific teams. In 2025, tailored cyber security training is planned for five Nilfisk departments.

New projects on IT resilience

We collaborate with third parties to implement new processes and ensure compliance with NIS2 and the EU Cyber Resilience Act, guaranteeing high-quality processes for our customers.

Tracking deactivation

Our advanced cleaning machines with tracking functionalities can deactivate tracking functionalities for customers that prioritize data security.

S4 Consumers and end-usersProgress on targets

Privacy
Phishing training
Data indicator Unit 2024 Target 2025
New office employees who received phishing training within three months
of their onboarding		 % 87% 100%

To enhance information security, Nilfisk aims to ensure that 100% of office employees receive phishing avoidance training. This ambitious target highlights our commitment to protecting both our company and our customers. Meeting this goal will strengthen our defenses against cyber threats and maintain our reputation as a trusted provider of secure cleaning solutions. In 2024, 87% of new employees completed phishing training, which is in line with the plan towards the 2025 target. The target is monitored and reported to the IT Steering Committee annually.

Security of a person and health and safety

Product recalls
Data indicator Unit 2024 Target 2025
Number of product recalls number 0 0

Nilfisk has set an annual target of zero product recalls, which was achieved in 2024. If necessary, due to the level of risk, we will discontinue the shipment of a product or activate a recall campaign. Similarly, if a product on the market, as part of the quality monitoring process, is assessed to put end-user health and safety at risk, we may halt the distribution of the product or initiate a recall campaign.

Accounting policy

Phishing training

The percentage of new office employees who received phishing training is calculated by dividing the number of office employees, defined as employees with a work computer, who started at Nilfisk during the reporting period and completed

the training within the same year by the total number of new office employees with at least 3 months' seniority at the end of the reporting year. The target has been set in consultation with key internal stakeholders.

Product recalls

Product recalls shows the amount of product recalls in the reporting year. The target has been set in consultation with key internal stakeholders.

G1 Business conduct

123 G1 Governance

For three consecutive years, Nilfisk has received EcoVadis Gold, placing us in the top five percent of all global companies rated by EcoVadis in the categories Environment, Human & Labor Rights, Sustainable Procurement, and Ethics. EcoVadis is considered the world's largest provider of business sustainability ratings and working with this framework helps us drive continuous improvement.

G1 Business conduct

conduct

As a global company, partner, and employer, Nilfisk is dedicated to integrity, ethical business conduct, and making a positive impact. We prioritize sustainable practices, inclusiveness, and adherence to ethical and legal standards.

Targets

Business conduct and corporate culture

Awarded EcoVadis Gold Ensuring strong governance processes

2022, 2023, 2024

2025

Gold

2025 90% 2024 63% 90% of employees to receive Code of Conduct training To ensure Nilfisk acts in accordance with its Code of Conduct Progress towards 2025 target

Corruption and bribery

25 on-site supplier audits to be conducted

To ensure insights and collaboration with high-risk suppliers

Progress towards 2025 target

G1 Business conductBusiness General information on business conduct and corporate culture

Our commitment to good governance and our Code of Conduct remains fundamental to how we conduct our business activities and interact with internal and external stakeholders.

For the past five years, Nilfisk has reported through the EcoVadis framework to continually develop our internal processes and to support transparency. To achieve an EcoVadis Gold award, we must demonstrate an advanced sustainability management system. EcoVadis is a globally recognized platform for assessing companies' performance on ESG, and is considered the world's largest provider of business sustainability ratings.

Code of Conduct

Nilfisk's Code of Conduct, covering our own operation and value chain, includes fundamental principles such as our Integrity policy (honesty, fairness, and accountability) and 11 rules of behavior requiring compliance with applicable laws and global standards. These are:

  • Anti-corruption
  • Climate and environment
  • Competition compliance
  • Data privacy
  • Foreign trade controls
  • Fraud and conflicts of interest
  • Health and safety
  • Information security
  • Labor rights

2025

2024

25

  • Diversity and inclusion
  • Product certification
  • Quality

Ownership and execution

The Code of Conduct is approved by the Board of Directors and the Compliance Team is responsible for its implementation. It is available to all stakeholders on Nilfisk's corporate intranet and websites, in multiple languages, and through training as described in the following sections.

Additionally, the Code of Conduct is supplemented by the Nilfisk Governance Framework (NGF) which is a comprehensive web portal. It comprises the code of conduct rules and multiple binding operational rules, which enforce high global standards in key business areas such as Sales, Service, R&D, Communications, and Finance. These rules are further supported by standard operating procedures and other guidelines.

The Code of Conduct and operational rules must be followed and integrated into daily business. It places clear responsibility on managers at all levels globally to ensure this occurs. The Nilfisk Leadership Team is ultimately responsible for enforcing these rules and have all completed the Code of Conduct training in 2024. Beginning in 2026, the implementation of all NGF rules will be assessed annually. Any implementation gaps will be identified and addressed within fixed timelines.

G1 Business conduct G1 Business conduct

High-risk supplier and due diligence processes

Nilfisk uses an online due diligence tool to evaluate compliance and sustainability risks among relevant suppliers and dealers in high-risk countries. The tool is based on criteria from Transparency International and watch lists from the US and the EU as well as other official guidelines. Nilfisk also has a dedicated supplier auditor based in China and utilizes third parties, such as Sedex, to evaluate key suppliers. Additionally, we actively pursue supplier diversity in the US in accordance with government requirements and guidance.

Other legal compliance tools include an online system to document processing personal data required by the EU's General Data Protection Regulation (GDPR).

Remediation and channels to raise concerns

This section describes Nilfisk's channels to raise concerns, and our remediation process.

Whistleblower policy

Nilfisk's Whistleblower policy outlines the procedures for reporting and investigating concerns. This policy, available in multiple languages on our corporate intranet and websites, has been approved by the Board of Directors and is managed by the Compliance Team.

Grievance mechanisms

Concerns can be reported through Nilfisk's multilingual online whistleblower system that ensures confidentiality and anonymity. This system complies with local reporting practices under the EU Whistleblower Directive (2019/1937). Additionally, concerns can be reported internally to managers, HR, or to the compliance team. The whistleblower process is available to all Nilfisk's stakeholders, including customers and end-users, and workers in the value chain.

All reports of possible legal or Code of Conduct violations, submitted through any channel, are directly investigated

by the compliance team on a case-by-case basis and are always handled independently from the chain of management involved in the matter. The conclusions from these investigations are reported to the Audit Committee, and the General Counsel. Members of senior management review relevant reports on a need-to-know basis.

Our Global Compliance Officer provides feedback to employees who have reported concerns, informing them when the investigation is complete and giving an overview of the outcome. Employees may also be invited to follow-up meetings with the Compliance Team, if appropriate. Upon finalizing investigations, Nilfisk takes action on a case-bycase basis within the scope of our capabilities.

Supplier audits

Another channel for identifying and raising concerns is the local on-site supplier audits, conducted by Nilfisk or a third party. They form part of Nilfisk's interactions with suppliers and workers in the value chain.

Read more in section S2 - Workers in the value chain.

Training

In Q4 2023, Nilfisk launched its internal Learning Management System (LMS). By the end of 2024, more than half of Nilfisk's global workforce had completed the mandatory Code of Conduct training online in English, Chinese, German, French, Italian, and Hungarian. By the end of 2024, nearly 90% of the employees at our manufacturing sites had received in-person training in local languages. In Q4 2024, Nilfisk introduced Code of Conduct trainings in additional local languages for all global employees, via LMS or in person, depending on the local company size, and will continue this into 2025.

During 2024, Nilfisk carried out global online dialogue with board members and employees at all job levels and locations, discussing the importance of reporting concerns, how investigations are conducted, and how employees are protected. From 2026, all Nilfisk employees will be required to take Code of Conduct training every two to three years.

Currently, new hires receive and confirm the Code of Conduct for review, when they join Nilfisk. We anticipate that from 2025 onwards, the training will be a requirement for new hires. In addition, various Nilfisk entities use posters and events to promote the Code of Conduct and Whistleblower policy.

G1 Business conduct G1 Business conduct

Policies and actions

Corruption and bribery

Nilfisk has identified a risk of fines and negative reputational effects from corruption and bribery incidents. We mitigate by having policies, actions, and targets to ensure appropriate activities and monitoring.

POLICIES

Nilfisk actively opposes bribery, as a company and as a participant in global organizations such as the UN Global Compact and the OECD's Business and Industry Advisory Committee.

Because we conduct business globally, there is a risk of corruption and bribery occurring in our own operations, particularly in high-risk countries where corruption is widespread. High-risk markets are identified based on Transparency International's Corruption Perception Index.

Integrity policy

In 2024, Nilfisk continued to comply with global anticorruption laws through its Integrity policy and the anti-corruption rule no. 1 in the Code of Conduct. This rule prohibits employees and managers from directly or indirectly offering, giving, or receiving anything of value to secure an improper business advantage. It includes clear examples of permissible and impermissible actions. The Integrity policy is approved by the Board of Directors.

ACTIONS High-risk subjects

Nilfisk evaluates corruption risks, particularly in high-risk functions like transport, logistics, and customs clearance, based on their interactions with external parties and where improper payments may be demanded.

Key risks are managed annually through our Enterprise Risk Management process, a third-party due diligence tool, and a new supplier compliance questionnaire. In 2024, we introduced a Supplier Code of Conduct prohibiting suppliers from engaging in bribery on Nilfisk's behalf. Similarly, new standard sales terms and conditions prohibit dealers from such actions.

Increased training and communication

Anti-corruption training is part of the Code of Conduct training. In 2025, Nilfisk will enhance anti-corruption efforts through compliance audits, training, and regular communication with managers in high-risk markets. Audits will include town hall meetings on the Code of Conduct and local compliance challenges. The supplier auditor in China will continue on-site and online audits of key suppliers.

Potential breaches can be reported via the whistleblower system. All reports follow the Code of Conduct investigation process led by Nilfisk's Compliance Manager.

Protection of whistleblowers

Material IRO Material IRO

Nilfisk has identified a risk of fines and negative reputational effects failing to protect whistleblowers or breaching GDPR rules.

POLICIES

Protecting whistleblowers is crucial for maintaining transparency and accountability in any organization. By safeguarding those who report potentially unethical or illegal activities, we foster an environment where integrity and fairness prevail.

The Code of Conduct governs overall actions related to whistleblower activities. Our Whistleblower policy prohibits retaliation against employees who report possible wrongdoing or support investigations. Retaliation itself is a violation of the Code of Conduct and will have serious consequences, including termination of employment.

ACTIONS

Whistleblower reports are treated confidentially and investigated based on severity. All participants involved in the investigation are informed of Nilfisk's position on anti-retaliation, as stated in the Whistleblower policy, and are encouraged to make a new report if retaliation based on the investigation occurs.

Participants are also encouraged to report any new developments, even after the investigation is complete. If evidence supports the allegations, Nilfisk will impose appropriate consequences and take remedial action for harmed employees.

Progress on targets Metrics

Business conduct and corporate culture targets

EcoVadis and Code of Conduct training
Data indicator Unit 2024 Target 2025
EcoVadis rating Rating Gold Gold
Code of Conduct participation rate % 63% 90%

EcoVadis: Nilfisk collaborates with EcoVadis to gather insights, drive improvements, and share performance transparently. Achieving EcoVadis Gold requires strong internal governance, enhancing transparency and awareness of business conduct. Nilfisk achieved this for the third consecutive year in 2024.

Code of Conduct: Nilfisk is committed to acting in alignment with our Code of Conduct. Therefore, we have set a target of 90% of employees completing the Code of Conduct training by the end of 2025. Having launched the Code of Conduct training in late 2023 and released local language versions in the seven most predominant languages in 2024, the 2024 performance of 63% is well on track towards the 90% target. The target has been set by the Head of Compliance and is monitored annually.

Corruption and bribery targets

On-site supplier audits

Data indicator Unit 2024 Target 2025
Number of on-site supplier audits conducted Number 25 25

Nilfisk has established a comprehensive supplier audit structure to facilitate dialogue and improvements with high-risk suppliers within our extensive global network. The highest level of engagement in this structure is on-site audits. In 2024, our highest-risk suppliers, identified based on known sustainability risks and business engagement size, were all located in China, resulting in all supplier audits being conducted there. Through these audits, we collaborate with suppliers to mitigate their negative impacts on employees and the environment, enhancing our business resilience and reducing the risks of corruption and bribery. In 2024, we achieved our annual target of 25 on-site supplier audits.

Accounting policy

EcoVadis rating

Represents the annual rating received from EcoVadis.

Code of Conduct training

The Code of Conduct participation rate is calculated by dividing the number of employees who completed the training by the total number of employee headcount at the end of the reporting period. This includes training completed through Nilfisk's Learning Management System (LMS) or in-person

sessions. Data is collected directly from the LMS or manually for employees who completed in-person training and signed a completion slip.

Supplier audits

Represents the total number of completed on-site supplier audits during the reporting year. All targets have been set in consultation with key internal stakeholders.

Percentage of at-risk-functions covered by training programs

G1 Business conduct
G1 Business conduct
G1-3 Prevention and detection of corruption and bribery
Percentage of at-risk-functions covered by training programs
Data indicator Unit 2024
Training coverage
Percentage of functions-at-risk covered by training programs % 57%
Percentage of functions-at-risk receiving training % 38%
Training of at-risk employees is primarily conducted as online-based training, with exceptions for countries with 50 employees or fewer, where
in-person training is provided to optimize training resources. The training covers several topics, including anti-corruption, anti-fraud, conflicts
of interest, and competition law. Training related to the detection of corruption and bribery shall be completed once every 2-3 years.
Accounting policy
Percentage of functions-at-risk covered by training programs

Accounting policy

The number of employees that work in at-risk functions is calculated as the percentage of employees in at-risk functions that have received anti-bribery and anti-corruption training in Nilfisk's Code of Conduct.

G1-4 Incidents of corruption or bribery

Convictions and fines for violation of anti-corruption and anti-bribery laws

Data indicator Unit 2024
Convictions for violation of anti
corruption and anti-bribery laws		 Number -
Amount of fines for violation
of anti-corruption and anti-bribery laws		 Number -

Incidents of corruption or bribery

The number of reported incidents regarding any convictions or fines for the violation of anti-corruption or anti-bribery laws.

ESRS disclosure overview Data points deriving from other EU legislation Statement on sustainability due diligence

MR SS FS

Additional information

Nilfisk has established on-site solar panels at our manufacturing sites in China and Italy. In 2024, solar panels at our site in China covered 27% of electricity use; at our Italy site, solar panels covered 32%. When unable to produce our own renewable energy, we aim to source wind and solar power from other producers. For 2024, electricity at all manufacturing sites in Europe, China, and one site in the US came from 100% renewable sources.

ESRS disclosure overview Data points deriving from other EU legislation Statement on sustainability due diligence ESRS disclosure overview

ESRS disclosure overview

Disclosure requirements Section¹ Page Additional information
ESRS 2 General disclosures
BP-1 General basis for preparation of sustainability statements SS 68
BP-2 Disclosures in relation to specific circumstances SS 68 Phase-in option used ²
GOV-1 The role of the administrative, management and supervisory
bodies		 MR, SS 47-55, 65 Incorporated by
reference
GOV-2 Information provided to and sustainability matters addressed by
the undertaking's administrative, management and supervisory
bodies		 SS 65
GOV-3 Integration of sustainability-related performance in incentive
schemes		 FS 150 Incorporated by
reference
GOV-4 Statement on due diligence SS 131
GOV-5 Risk management and internal controls over sustainability
reporting		 MR 48 Incorporated by
reference
SBM-1 Strategy, business model and value chain MR, SS 17-18, 20, 22,
24, 25-32, 36, 41,
58, 67		 Incorporated by
reference
Phase-in option used ³
SBM-2 Interests and views of stakeholders SS 73
SBM-3 Material impacts, risks and opportunities and their interaction
with strategy and business model		 SS 71-72, 74-77, 104,
117, 119		 Phase-in option used 4
IRO-1 Description of the processes to identify and assess material
impacts, risks and opportunities		 SS 59, 66, 69-70
IRO-2 Disclosure requirements in ESRS covered by the undertaking's
sustainability statement		 SS 128-130
ESRS E1 Climate change
E1-1 Transition plan for climate change mitigation SS 80
E1-2 Policies related to climate change mitigation and adaptation SS 80-82
E1-3 Actions and resources in relation to climate change policies SS 80-82
E1-4 Targets related to climate change mitigation and adaptation SS 79-80, 83
E1-5 Energy consumption and mix SS 84
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions SS 85-86
E1-9 Anticipated financial effects from material physical and
transition risks and potential climate-related opportunities		 - - Phase-in option used
Disclosure requirements Section¹ Page Additional information
ESRS E2 Pollution
E2-1 Policies related to pollution SS 87-88
E2-2 Actions and resources related to pollution SS 87-88
E2-3 Targets related to pollution SS 87-88
E2-5 Substances of concern and substances of very high concern SS 89
E2 Entity-specific metrics SS 87, 88, 90
E2-6 Anticipated financial effects from pollution-related impacts,
risks and opportunities		 - - Phase-in option used
ESRS E3 Water and marine resources
E3-1 Policies related to water and marine resources SS 91
E3-2 Actions and resources related to water and marine resources SS 91
E3-3 Targets related to water SS 91
E3-4 Water consumption SS 92
E3 Entity-specific metrics SS 91-92
E3-5 Anticipated financial effects from water and marine resources
related impacts, risks, and opportunities		 - - Phase-in option used
ESRS E5 Resources and circular economy
E5-1 Policies related to resource use and circular economy SS 93-94
E5-2 Actions and resources related to resource use and circular
economy		 SS 93-94
E5-3 Targets related to resource use and circular economy SS 93, 95
E5-4 Resource inflows SS 95
E5-5 Resource outflows SS 96
E5-6 Anticipated financial effects from resource use and circular
economy-related impacts, risks, and opportunities		 - - Phase-in option used

¹ Financial Statements (FS), Management Review (MR), Sustainability Statements (SS)

² Phase-in option used for value chain data for metrics.

³ Phase-in option used for information on ESRS sectors.

4 Phase-in option used for information on anticipated financial effects.

MR SS FS

ESRS disclosure overview Data points deriving from other EU legislation Statement on sustainability due diligence ESRS disclosure overview

ESRS disclosure overview – continued

Disclosure requirements Section¹ Page Additional information
ESRS S1 Own workforce
S1-1 Policies related to own workforce SS 104-109
S1-2 Processes for engaging with own workers and workers'
representatives about impacts		 SS 104
S1-3 Processes to remediate negative impacts and channels for own
workers to raise concerns		 SS 104
S1-4 Taking action on material impacts on own workforce, and
approaches to mitigating material risks and pursuing material
opportunities related to own workforce, and effectiveness of
those actions		 SS 105-109
S1-5 Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities		 SS 103, 109-110
S1-6 Characteristics of the undertaking's employees SS 111
S1-7 Characteristics of non-employee workers in the undertaking's
own workforce		 SS 112
S1-8 Collective bargaining coverage and social dialogue SS 112
S1-9 Diversity metrics SS 113
S1-10 Adequate wages SS 113
S1-11 Social protection SS 114
S1-12 Persons with disabilities SS 114
S1-13 Training and skills development metrics SS 114
S1-14 Health and safety metrics SS 115
S1-15 Work-life balance metrics SS 116
S1-16 Compensation metrics (pay gap and total compensation) SS 116
S1-17 Complaints and severe human rights impacts SS 116
ESRS S2 Workers in the value chain
S2-1 Policies related to value chain workers SS 117-118
S2-2 Processes for engaging with value chain workers about impacts SS 118
S2-3 Processes to remediate negative impacts and channels for
value chain workers to raise concerns		 SS 118
Disclosure requirements Section¹ Page Additional information
ESRS S2 Workers in the value chain - continued
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 action		 SS 118
S2-5 Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities		 SS 117
ESRS S4 Consumers and end-users
S4-1 Policies related to consumers and end-users SS 119-120
S4-2 Processes for engaging with consumers and end-users about
impacts		 SS 119
S4-3 Processes to remediate negative impacts and channels for
consumers and end-users to raise concerns		 SS 119
S4-4 Taking action on material impacts on consumers and end
users, and approaches to managing material risks and pursuing
material opportunities related to consumers and end-users, and
effectiveness of those actions		 SS 119-120
S4-5 Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities		 SS 119, 121
ESRS G1 Business conduct
G1-1 Corporate culture and business conduct policies and corporate
culture		 SS 123-125
G1-3 Prevention and detection of corruption and bribery SS 126
G1-4 Confirmed incidents of corruption or bribery SS 126

¹ Financial Statements (FS), Management Review (MR), Sustainability Statements (SS)

Data points deriving from other EU legislation

Disclosure
requirement		 Datapoint SFDR
reference		 Pillar 3
reference		 Benchmark
regulation
reference		 EU Climate law
reference		 Page Disclosure
requirement		 Datapoint SFDR
reference		 Pillar 3
reference		 Benchmark
regulation
reference		 EU Climate law
reference		 Page
ESRS 2 GOV-1 21 (d) 50 ESRS E5-5 37 (d) 96
ESRS 2 GOV-1 21 (e) 47 ESRS E5-5 39 96
ESRS 2 GOV-4 30 131 ESRS 2- SBM3 - S1 14 (f) 104
ESRS 2 SBM-1 40 (d) i Not applicable ESRS 2- SBM3 - S1 14 (g) 104
ESRS 2 SBM-1 40 (d) ii Not applicable ESRS S1-1 20 104
ESRS 2 SBM-1 40 (d) iii Not applicable ESRS S1-1 21 104
ESRS 2 SBM-1 40 (d) iv Not applicable ESRS S1-1 22 104
ESRS E1-1 14 80 ESRS S1-1 23 106
ESRS E1-1 16 (g) Not applicable ESRS S1-3 32 (c) 104
ESRS E1-4 34 79-80, 83 ESRS S1-14 88 (b) and (c) 115
ESRS E1-5 38 84 ESRS S1-14 88 (e) 115
ESRS E1-5 37 84 ESRS S1-16 97 (a) 116
ESRS E1-5 40-43 84 ESRS S1-16 97 (b) 116
ESRS E1-6 44 85 ESRS S1-17 103 (a) 116
ESRS E1-6 53-55 85 ESRS S1-17 104 (a) 116
ESRS E1-7 56 Not applicable ESRS 2- SBM3 – S2 11 (b) 117
ESRS E1-9 66 Not applicable ESRS S2-1 17 117
ESRS E1-9 66 (a); 66 (c) Not applicable ESRS S2-1 18 118
ESRS E1-9 67 (c) Not applicable ESRS S2-1 19 Not applicable
ESRS E1-9 69 Not applicable ESRS S2-1 19 117
ESRS E2-4 28 Not applicable ESRS S2-4 36 117-118
ESRS E3-1 9 91 ESRS S3-1 16 Not applicable
ESRS E3-1 13 91 ESRS S3-1 17 Not applicable
ESRS E3-1 14 Not applicable ESRS S3-4 36 Not applicable
ESRS E3-4 28 (c) 92 ESRS S4-1 16 119-120
ESRS E3-4 29 92 ESRS S4-1 17 119-120
ESRS 2- SBM 3 - E4 16 (a) i Not applicable ESRS S4-4 35 119
ESRS 2- SBM 3 - E4 16 (b) Not applicable ESRS G1-1 10 (b) Not applicable
ESRS 2- SBM 3 - E4 16 (c) Not applicable ESRS G1-1 10 (d) Not applicable
ESRS E4-2 24 (b) Not applicable ESRS G1-4 24 (a) 126
ESRS E4-2 24 (c) Not applicable ESRS G1-4 24 (b) 125
ESRS E4-2 24 (d) Not applicable

MR SS FS

ESRS disclosure overview Data points deriving from other EU legislation Statement on sustainability due diligence Statement on sustainability due diligence

Statement on sustainability due diligence

Core elements of due diligence Page
a) Embedding due diligence in governance, strategy and business model 65, 71-72, 74-77, 104, 117, 119, 150
b) Engaging with affected stakeholders in all key steps of the due diligence 65-66, 69-70, 73, 81-82, 87-88, 91, 93-94, 104-109, 117-120, 123-125
c) Identifying and assessing adverse impacts 66, 69-72, 74-77, 104, 117, 119
d) Taking actions to address those adverse impacts 80-82, 87-88, 91, 93-94, 104-109, 117-120, 123-125
e) Tracking the effectiveness of these efforts and communicating 65, 79-80, 83-85, 87-96, 103, 109-117, 119, 121, 123, 126

Financial Statements

MR SS FS

Part of the management review

Parent financial statements

Statements & reports

Consolidated financial statements 2024

Income statement 134
Statement of comprehensive income 134
Statement of financial position 135
Cash flow statement 136
Statement of changes in equity 137
Notes 138

1 Basis for reporting 138

2 Profit for the year 140

2.7 Tax 147

3 Remuneration 149

4 Capital employed 153

4.1 Capital employed 154

Income statement and statement of comprehensive income Statement of financial position Cash flow statement Statement of changes in equity Notes Part of the management review

5 Working capital 165

6 Capital structure 169

7 Cash flow 179
7.1 Other non-cash adjustments 179
8 Other notes 180
8.1 Fees to auditors elected at the
annual general meeting 180
8.2 Related parties 180
8.3 Contingent liabilities, securities,
and contractual obligations 180
8.4 Events after balance sheet date 181
8.5 Group companies 181
Part of the management review - not audited 182
Financial definitions 182
Non-IFRS financial measures 183

Accounting policy

Accounting policies are included in the notes to which they relate in order to facilitate understanding of the contents and the accounting treatment applied. Accounting policies not relating directly to individual notes are stated in Note 1.1.

Key accounting estimate

Key accounting estimates made by the Executive Management Board are included in the notes to which they relate in order to increase clarity.

Key accounting judgments

Key accounting judgments made by the Executive Management Board are included in the notes to which they relate in order to increase clarity.

Sensitivity analysis often accompanies key accounting estimates and is included in the notes to which it relates in order to increase clarity.

Income statement

for the years ended December 31

EUR million Note 2024 2023
Revenue 2.1, 2.2 1,027.9 1,033.6
Cost of sales 2.5, 3 -594.0 -611.1
Gross profit 433.9 422.5
Research and development costs 2.3, 2.5, 3 -28.7 -27.5
Sales and distribution costs 2.5, 3 -259.4 -251.7
Administrative costs 2.5, 3 -76.2 -74.6
Other operating income 2.0 4.7
Other operating expenses 0.3 -2.3
Operating profit before special items 71.9 71.1
Special items, net 2.4, 2.5 -6.4 -9.9
Operating profit 65.5 61.2
Share of profit from associates 6.2 4.0 0.8
Financial income 2.6 1.1 10.4
Financial expenses 2.6 -23.3 -25.1
Profit before income taxes 47.3 47.3
Tax on profit for the year 2.7 -11.9 -12.0
Profit for the year 35.4 35.3
To be distributed as follows:
Profit attributable to shareholders of Nilfisk Holding A/S 35.4 35.3
Total 35.4 35.3
Earnings per share (based on 27,126,369 shares issued)
Basic earnings per share (EUR) 6.4 1.31 1.30
Diluted earnings per share (EUR) 1.31 1.30

Statement of comprehensive income

for the years ended December 31

EUR million Note 2024 2023
Profit for the year 35.4 35.3
Other comprehensive income
Items that may be reclassified to the income statement:
Exchange rate adjustments of subsidiaries 8.8 -9.0
Value adjustment of hedging instruments:
Value adjustment for the year 6.3 -1.5 -3.0
Transferred to cost of sales 6.3 1.2 -0.7
Transferred to financial income and expenses 6.3 - -9.6
Tax on value adjustment of hedging instruments 2.7 -0.1 3.1
Items that may not be reclassified to the income statement:
Transferred to inventory 6.3 0.8 -0.6
Actuarial losses on defined benefit plans 4.6 -1.1 -
Tax on actuarial losses on defined benefit plans 2.7 0.3 -
Total comprehensive income for the year 43.8 15.5
To be distributed as follows:
Comprehensive income attributable to shareholders of Nilfisk Holding A/S 43.8 15.5
Total 43.8 15.5

Statement of financial position

as of December 31

EUR million Note 2024 2023
Assets
Goodwill 170.7 168.7
Trademarks 3.7 4.7
Customer related assets 1.1 2.5
Development projects completed 32.6 32.1
Software, know-how, patents, and competition clauses 17.4 15.5
Development projects and software in progress 30.8 19.9
Total intangible assets 4.2, 4.3 256.3 243.4
Land and buildings 6.4 6.3
Plant and machinery 6.5 4.6
Tools and equipment 37.0 29.9
Assets under construction incl. prepayments 3.4 5.4
Right-of-use assets 4.5 62.1 66.6
Total property, plant, and equipment 4.2, 4.4 115.4 112.8
Investments in associates 6.2 37.6 34.9
Interest-bearing receivables 6.1 1.8 1.3
Other investments and receivables 3.2 2.8
Deferred tax 2.7 23.5 23.4
Total other non-current assets 66.1 62.4
Total non-current assets 4.1 437.8 418.6
Inventories 5.1, 5.2 233.1 200.5
Trade receivables
5.1, 5.3, 6.3		 156.1 138.7
Interest-bearing receivables 6.1, 6.3 0.3 0.5
Income tax receivables 5.1 2.3 3.5
Other receivables 5.1, 6.3 37.7 28.9
Cash and cash equivalents 27.4 23.3
Total current assets 456.9 395.4
Total assets 894.7 814.0
EUR million Note 2024 2023
Equity and liabilities
Share capital 6.4 72.9 72.9
Reserves 4.2 -5.0
Retained earnings 242.3 207.1
Total equity 319.4 275.0
Deferred tax 2.7, 4.1 1.6 6.9
Pension liabilities 4.1, 4.6 4.4 3.8
Provisions 4.1, 4.7 7.4 4.9
Interest-bearing loans and borrowings 6.1, 6.3 229.1 205.9
Lease liabilities 6.1, 6.3 38.6 44.7
Other liabilities 6.3 3.3 3.5
Total non-current liabilities 284.4 269.7
Interest-bearing loans and borrowings 6.1, 6.3 5.5 2.1
Lease liabilities 6.1, 6.3 26.4 24.6
Trade payables 5.1, 6.3 127.7 123.5
Income tax payables 5.1 7.0 7.8
Other liabilities 5.1, 6.3 112.2 97.2
Provisions 4.1, 4.7 12.1 14.1
Total current liabilities 290.9 269.3
Total liabilities 575.3 539.0
Total equity and liabilities 894.7 814.0

Cash flow statement

for the years ended December 31

EUR million
Note		 2024 2023
Operating profit 65.5 61.2
Depreciation, amortization, and impairment
2.5		 63.9 61.9
Other non-cash adjustments
7.1		 0.3 -1.0
Changes in working capital
5.1		 -43.8 46.8
Cash flow from operations before financial items and income taxes 85.9 168.9
Financial income received 2.1 11.8
Financial expenses paid -19.2 -22.6
Income tax paid -16.9 -15.1
Cash flow from operating activities 51.9 143.0
Purchase of property, plant, and equipment
4.4		 -13.9 -8.6
Sale/disposal of property, plant, and equipment 0.6 2.8
Purchase of intangible assets
4.3		 -32.2 -22.4
Purchase of financial assets -0.9 -1.7
Disposal of financial assets 0.2 0.6
Dividends received from associates
6.2		 2.0 1.5
Cash flow from investing activities -44.2 -27.8
Free cash flow 7.7 115.2
Changes in current interest-bearing loans and borrowings -2.0 1.7
Changes in non-current interest-bearing loans and borrowings, proceeds 27.4 -85.1
Payment of lease liabilities -28.6 -26.4
Cash flow from financing activities
6.1		 -3.2 -109.8
Net cash flow for the year 4.5 5.4
Cash and cash equivalents, January 1 23.3 22.7
Exchange rate adjustments -0.4 -4.8
Net cash flow for the year 4.5 5.4
Cash and cash equivalents, December 31 27.4 23.3

Statement of changes in equity

for the years ended December 31 2024 2023
EUR million Share capital Foreign
exchange reserve		 Hedging reserve Retained earnings Total equity Share capital Foreign
exchange reserve		 Hedging reserve Retained earnings Total equity
Equity, January 1 72.9 -3.5 -1.5 207.1 275.0 72.9 5.5 9.3 173.0 260.7
Other comprehensive income
Exchange rate adjustments - 8.8 - - 8.8 - -9.0 - - -9.0
Value adjustment of hedging instruments:
Value adjustment for the year - - -1.5 - -1.5 - - -3.0 - -3.0
Transferred to cost of sales - - 1.2 - 1.2 - - -0.7 - -0.7
Transferred to financial income and expenses - - - - - - - -9.6 - -9.6
Transferred to inventory - - 0.8 - 0.8 - - -0.6 - -0.6
Actuarial losses on defined benefit plans - - - -1.1 -1.1 - - - - -
Tax on actuarial losses on defined benefit plans - - - 0.3 0.3 - - - - -
Tax on value adjustment of hedging instruments - - -0.1 - -0.1 - - 3.1 - 3.1
Total other comprehensive income - 8.8 0.4 -0.8 8.4 - -9.0 -10.8 - -19.8
Profit for the year - - - 35.4 35.4 - - - 35.3 35.3
Comprehensive income for the year - 8.8 0.4 34.6 43.8 - -9.0 -10.8 35.3 15.5
Share option program - - - 0.6 0.6 - - - -1.2 -1.2
Total changes in equity - 8.8 0.4 35.2 44.4 - -9.0 -10.8 34.1 14.3
Equity, December 31 72.9 5.3 -1.1 242.3 319.4 72.9 -3.5 -1.5 207.1 275.0

Section 1 Basis for reporting

This section describes the applied reporting framework, including a definition of materiality for disclosures as well as any changes in the accounting policies for the consolidated financial statements.

1.1 Basis for preparation

Nilfisk Holding A/S is a public limited company domiciled in Denmark.

The consolidated financial statements included in this Annual Report for the year 2024 are prepared in accordance with IFRS Accounting Standards, as adopted by the EU, and additional requirements under the Danish Financial Statements Act. The parent financial statements are prepared in accordance with the Danish Financial Statements Act.

Measurement basis

The consolidated financial statements included in this Annual Report are presented in EUR million rounded to one decimal point.

The consolidated financial statements included in this Annual Report are prepared according to the historical cost principle. The only exceptions are derivatives and financial instruments in a trading portfolio, which are measured at fair value.

Material accounting policies

Apart from the accounting policies described in this section, accounting policies are described in each of the individual notes. The accounting policies are applied consistently during the financial year and for the comparative figures.

Applying materiality

The provisions in IFRS contain extensive disclosure requirements. The specific disclosures required according to IFRS are stated in the consolidated financial statements included in this Annual Report unless the disclosures concerned are considered irrelevant or immaterial for financial decisions made by the financial statement users.

The Group has operations in Argentina and Türkiye and is therefore subject to Hyperinflation accounting (IAS 29). Based on an assessment of materiality, IAS 29 has not been applied as it is immaterial to the Nilfisk Group.

Going concern

The Executive Management Board is required to decide whether the consolidated financial statements can be presented on a 'going concern' basis. Based on estimated future prospects, expectations of future cash flows, existence of credit facilities, etc., the Executive Management Board is of the opinion that there are no factors giving reason to doubt whether Nilfisk Holding A/S can continue operating for at least 12 months from the balance sheet date.

Principles of consolidation

The consolidated financial statements incorporate the financial statements of Nilfisk Holding A/S and entities controlled by Nilfisk Holding A/S. Control exists when Nilfisk Holding A/S has effective power over the entity and has the right to variable returns from the entity.

Where necessary, adjustments have been made to the financial statements of subsidiaries to bring their accounting policies in line with Nilfisk Group policies. All intragroup transactions, balances, income, and expenses are eliminated in full when consolidated.

Functional and presentation currency

Items included in the financial statements of each of Nilfisk Group's entities are measured using the currency of the primary economic environment in which the entity operates (functional currency). The consolidated financial statements are presented in Euro (EUR). The functional currency of Nilfisk Holding A/S is DKK.

The presentation currency is EUR as the Nilfisk Group's main business activities are EUR denominated and the internal reporting is presented in EUR.

ESEF regulation/ iXBRL-reporting

The Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) requires the use of a specific digital reporting format for annual reports of listed companies in the EU. More precisely, the ESEF regulation requires the annual report to be prepared in XHTML format with iXBRL tagging of the consolidated financial statements in the form of income statement, statement of comprehensive income, statement of financial position, cash flow statement, statement of changes in equity, and notes.

The iXBRL tagging of Nilfisk Holding A/S has been made using the ESEF taxonomy disclosed in the annexes to the ESEF Regulation and developed based on the IFRS taxonomy published by the IFRS Foundation. The 2023 version of the ESEF taxonomy has been used for the annual report for 2024.

The line items in the consolidated financial statements are XBRL-tagged to the elements of the ESEF taxonomy that are considered to match the content of those line items. For line items not considered to be covered by line items defined in the taxonomy, company-specific extensions to the taxonomy have been incorporated. Except for subtotals, these extensions are anchored to standard elements of the ESEF taxonomy.

Consistent with the requirements of the ESEF Regulation, the annual report approved by Management is comprised of a ZIP file identified as NIL-2024-12-31-en.zip, which includes an XHTML file that may be opened using standard web browsers, and a series of technical XBRL files enabling mechanical retrieval of the XBRL data incorporated.

1.2 Key accounting estimates and judgments

When preparing the consolidated financial statements, the use of reasonable estimates and judgments is essential.

Given the uncertainties inherent in Nilfisk's business activities, the Executive Management Board makes a number of accounting estimates and judgments. The estimates and judgments are based on assumptions that form the basis for recognition and measurement of assets, liabilities, cash flows, and related disclosures. Estimates and judgments are regularly reassessed.

Key accounting estimates are expectations of the future based on assumptions that to the extent possible are supported by historical experience, customer demands, competitor actions and other reasonable expectations. Estimates, by their nature, are associated with uncertainty and unpredictability. The actual amounts may differ from the amounts estimated as more detailed information becomes available. The Executive Management Board believe that the estimates are reasonable, appropriate, and the most likely outcome of future events under the given circumstances.

The key accounting estimates identified are those that potentially could have a significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities.

Key accounting judgments are made when applying accounting policies. Key accounting judgments are judgments made that can have a significant impact on recognition, classification, and disclosures of amounts in the financial statements.

Key accounting estimates and judgments applied in the preparation of the consolidated financial statements are listed in the table. Refer to the specific notes for further information on the key accounting estimates and judgments as well as the assumptions applied.

Particular risks referred to in the 'Risk management' section of the Management Review and in Note 6.3 may have substantial influence on the financial statements.

1.3 Implementation of new or changed accounting standards and interpretations

Amendments to accounting standards that are mandatorily effective for the current reporting period

IASB has issued amended standards which apply for the first time in 2024. None of these amended standards and interpretations have had any significant impact on the Group's financial statements.

New and amended IFRS standards and interpretations not yet effective by the EU

IASB has issued new or amended accounting standards and interpretations that have not yet become effective and have consequently not been implemented in the consolidated financial statements for 2024. Nilfisk expects to adopt the accounting standards and interpretations as they become mandatory.

The new or amended standards or interpretations are not expected to have a significant impact on the consolidated Financial Statements.

Key accounting estimates and judgments

Note Key accounting estimates and judgments Estimate/judgment Impact of accounting
estimates and judgments
2.4
Special items		 Determine the classification of special items Judgment Medium
2.7
Tax		 Estimate the value of the deferred tax assets and recognition of income taxes Estimate High
4.2
Impairment test		 Estimate of the value-in-use for intangible assets based on
assumptions used when impairment testing		 Estimate High
Determine the allocation of goodwill to the reportable segments Judgment Medium
4.7
Provisions		 Estimate the value of provisions related to uncertain legal cases Estimate Medium

Section 2 Profit for the year

This section relates to profit for the year, including revenue, segment information, research and development costs, special items, amortization, depreciation, and impairment, financial items, and income tax.

Key developments in 2024

Revenue

Revenue decreased from 1,033.6 mEUR in 2023 to 1,027.9 mEUR in 2024, corresponding to a decrease of 0.6%. The Consumer Business delivered strong organic growth, while Specialty delivered solid growth. Growth was limited in the Service Business, while the Professional Business declined organically.

In the regions, APAC and Americas saw negative organic growth, while EMEA delivered positive organic growth mainly driven by key markets, including Germany, UK, France, and Spain.

Gross profit

Gross profit was 433.9 mEUR, up by 11.4 mEUR compared to last year. Gross margin was 42.2%, up by 1.3 percentage point compared to last year. The gross margin improvement was driven by continued diligent price management, operational efficiencies, and a favorable product mix.

Revenue by business segment

Professional Business Service Business Specialty Business

Consumer Business

2024 2023 57% 8% 6% 29% 59% 6% 6% 29%

Gross profit by business segment

  • Professional Business
  • Service Business
  • Specialty Business
  • Consumer Business

2. Profit for the year – continued

Accounting policy

Segment information

The segment information is based on internal management reporting and is presented in accordance with the Nilfisk Group's accounting policies.

Segment income and expenses include those items that are directly attributable to the individual segment and those items that can be reliably allocated to it.

Reportable segments

The reportable segments are generally referred to as business segments. The business segments consist of Professional, Service, Specialty, and Consumer.

The Executive Management Board assesses revenue, gross profit, and EBITDA before special items of the business segments separately to enable decisions concerning allocation of resources and measurement of performance.

Revenue in the reportable segments

The business segments are identified without aggregation of reportable segments.

Cost of sales in the reportable segments

Cost of sales consists of costs incurred in generating the revenue for the year. The cost of raw materials, consumables, inbound freight, production staff, and a proportion of production overheads, including maintenance, amortization, depreciation, and impairment of intangible and tangible assets used in production as well as operation, administration, and management of the production facilities are recognized as cost of sales.

Cost of sales also includes shrinkage, waste production, and any write-downs on inventory for obsolescence.

Assets in the reportable segments

Because the production units deliver products to several business segments and because the business segments in some cases use the same assets, it is not possible to attribute assets reliably to the individual segments.

Sales and distribution costs

Sales and distribution costs include costs incurred for distribution of goods and services sold and costs for sales and distribution personnel, advertising costs, and amortization, depreciation, and impairment of intangible and tangible assets used in the sales and distribution process.

Administrative costs

Administrative costs include costs of staff functions, administrative personnel, office costs, rent, lease payments, amortization, depreciation, and impairment of intangible and tangible assets not relating specifically to cost of sales, research and development, and sales and distribution activities.

2.1 Segment information

Nilfisk's reportable segments consists of the following:

  • Professional Business covers all revenue from sales of professional machines including Private Label.
  • Service Business contains service offerings, including service packages and parts, accessories, and consumables (PAC) for the Professional Business and IVS.
  • Specialty Business contains IVS and Nilfisk Food. Service and PAC are included for Nilfisk Food.
  • The Consumer Business covers consumer machines, service, and PAC related to consumer products.
  • Headquarter (HQ) consists of overhead costs which relate to HQ activities.

No single customer accounts for more than 10% of revenue.

EUR million Professional
Business		 Service
Business		 Specialty
Business		 Consumer
Business		 HQ Group
2024
Revenue 585.8 299.8 65.0 77.3 - 1,027.9
Gross profit 239.6 132.2 33.3 28.8 - 433.9
EBITDA before special items 79.4 71.0 19.1 6.5 -40.2 135.8
Reconciliation to profit before income taxes:
Special items -6.4
Amortization, depreciation, and impairment -63.9
Share of profit from associates 4.0
Financial income 1.1
Financial expenses -23.3
Profit before income taxes 47.3
Organic growth -0.9% 0.6% 4.9% 19.7% - 1.2%
Gross margin 40.9% 44.1% 51.2% 37.3% - 42.2%
EBITDA margin before special items 13.6% 23.7% 29.4% 8.4% - 13.2%
2023
Revenue 603.6 302.4 62.6 65.0 - 1,033.6
Gross profit 232.0 134.4 33.2 22.9 - 422.5
EBITDA before special items 69.1 72.9 20.2 4.5 -34.3 132.4
Reconciliation to profit before income taxes:
Special items -9.9
Amortization, depreciation, and impairment -61.3
Share of profit from associates 0.8
Financial income 10.4
Financial expenses -25.1
Profit before income taxes 47.3
Organic growth -1.8% 5.5% -2.6% -8.9% - -0.3%
Gross margin 38.4% 44.4% 53.0% 35.2% - 40.9%
EBITDA margin before special items 11.4% 24.1% 32.3% 6.9% - 12.8%

2.2 Revenue

Geographical information

Nilfisk has sales companies located in approximately 40 countries and reaches more than 100 countries through direct sales and dealers.

Revenue by country

The table below shows a split of revenue based on the top 10 countries in which the sales companies are located.

EUR million / Percentage 2024 2023
USA 282.7 28% 305.8 30%
Germany 148.8 14% 141.7 14%
France 107.4 10% 103.9 10%
Denmark 68.9 7% 66.7 6%
United Kingdom 39.9 4% 36.8 4%
Canada 28.8 3% 29.8 3%
Netherlands 25.8 3% 24.2 2%
Italy 25.1 2% 25.6 2%
Spain 22.8 2% 20.9 2%
Türkiye 22.2 2% 19.2 2%
Other 255.5 25% 259.0 25%
Total 1,027.9 100% 1,033.6 100%
Revenue Non-current assets*
EUR million 2024 2023 2024 2024 2023
EMEA region 612.4 585.6 5.9% 310.0 290.6
Americas region 341.2 365.9 -4.3% 68.3 70.3
APAC region 74.3 82.1 -8.0% 36.0 34.3
Total 1,027.9 1,033.6 1.2% 414.3 395.2

* Non-current assets less deferred tax assets.

Non-current assets by region

EMEA region Americas region APAC region

2.2 Revenue – continued

Contract assets and liabilities

Generally, trade receivables are recognized at the same point in time as revenue recognition and invoicing. Payment terms vary within the different customer segments due to local and specific agreements but are generally due within 30 to 90 days. In some cases the Group receives upfront payments which result in contract liabilities. Nilfisk does not have contract assets.

The Group splits contract liabilities into either deferred revenue or prepayments from customers depending on the nature of the payment and activity. Prepayments from customers are primarily upfront payments for machines and services that have not yet been delivered. Deferred revenue covers unsatisfied performance obligations that have not yet been recognized as revenue. These are mostly services but can also be goods which have not yet been delivered or orders not yet fulfilled.

EUR million December
31, 2024		 December
31, 2023
Prepayments from customers 1.0 1.0
Deferred revenue (non-current) 2.3 2.7
Deferred revenue (current) 8.3 7.8
Total contract liabilities 11.6 11.5

Set out below is the amount of revenue recognized from:

EUR million 2024 2023
Amounts included in contract liabilities at the
beginning of the year		 8.8 9.5

2.3 Research and development costs

Research and development costs specification

EUR million 2024 2023
Staff costs 20.9 18.8
Other costs 17.5 14.3
Total research and development spend 38.4 33.1
Recognized as follows:
Expensed in the income statement 17.6 16.2
Capitalized 20.8 16.9
Total 38.4 33.1
R&D ratio (% of revenue) 3.7% 3.2%
Presented in the income statement:
Expensed in the income statement, cf. above 17.6 16.2
Amortization, depreciation, and impairment 11.1 11.3
Research and development costs
excluding special items		 28.7 27.5
Special items 0.1 1.2
Total research and development costs 28.8 28.7

Accounting policy

Revenue from sale of goods for resale, finished goods, and service is recognized in the income statement when transfer of control of products or services to a customer has taken place. Sales are recognized when control of the goods has transferred, meaning when the goods are delivered to the customer, and there is no unfulfilled obligation that could affect the customer's acceptance of the products.

Revenue from the Service Business includes field service, packages relating to products and contracts, as well as the sale of parts, accessories, and consumables, which are recognized concurrently with the supply of those services. Depending on the type of contract, service revenue is recognized over time or at a point in time.

Some contracts include multiple deliverables, such as the sale of machines and related installation services. However, the installation is simple and does not include an integration service and could be performed by another party. Installation is not accounted for as a separate performance obligation.

Where the contracts include multiple performance obligations, the transaction price is allocated to each performance obligation based on the stand-alone selling prices. Where these are not directly observable, they are estimated based on expected cost plus margin.

Revenue is measured at the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts granted are recognized in the revenue.

The research and development spend increased by 5.3 mEUR compared to the same period last year and total research and development spend as a percentage of revenue increased by 0.5 percentage point. For further information see the research and development comments in the Management Review.

2.4 Special items

EUR million 2024 2023
Business restructuring 6.4 10.1
Divestment - -0.2
Total 6.4 9.9

Special items are disclosed separately in the income statement and have been reconciled to the income statement line items as specified in the table to the right.

Special items recognized in 2024 came to 6.4 mEUR, mainly from advisory costs incurred for strategic improvement projects and restructuring costs from the consolidation of the two US high-pressure washer operations. In addition, the net impact of costs and expected insurance proceeds from Hurricane Milton, which negatively impacted the US high-pressure washer business, as well as costs related to the claim filed against Nilfisk by the owner of the US distribution center building in Springdale, Arkansas were included as special items during the year.

Special items recognized in 2023 were mainly legal, advisory, and redundancy costs incurred in connection with strategic projects. Divestment income in 2023 was related to the liquidation of Nilfisk Russia.

-
1,033.6
0.2 -610.9
0.2 422.7
-1.2 -28.7
-4.7 -256.4
-4.5 -79.1
0.3 2.7
9.9 -
- 61.2

Key accounting judgments

Identification and classification of income and expenses as special items is based on management's judgment of the individual income and expenses as being non-recurring by nature.

Accounting policy

Special items consist of non-recurring income and expenses that the Nilfisk Group does not consider to be a part of its ordinary operations such as restructuring projects and gains and losses on divestments, including impairment write-downs which are not presented as discontinued operations.

2.5 Amortization, depreciation, and impairment

This note shows the split of amortization, depreciation, and impairment for the

Nilfisk Group in the income statement.

Intangible assets Property, plant and equipment Total
EUR million 2024 2023 2024 2023 2024 2023
Amortization and depreciation:
Cost of sales 0.1 0.1 20.9 19.2 21.0 19.3
Research and development costs 10.6 10.8 0.4 0.5 11.0 11.3
Sales and distribution costs 2.6 2.5 11.9 10.8 14.5 13.3
Administrative costs 8.0 7.6 9.1 9.7 17.1 17.3
Special items - - - 0.6 - 0.6
Total amortization and depreciation 21.3 21.0 42.3 40.8 63.6 61.8
Impairment:
Research and development costs 0.1 - - - 0.1 -
Sales and distribution costs - 0.1 - - - 0.1
Administrative costs 0.2 - - - 0.2 -
Total impairment 0.3 0.1 - - 0.3 0.1
Total amortization, depreciation, and impairment 21.6 21.1 42.3 40.8 63.9 61.9

For 2024, amortization of acquisition-related intangibles was 2.7 mEUR (2023: 2.7 mEUR), hereof 0.1 mEUR in cost of sales (2023: 0.1 mEUR) and 2.6 mEUR included in sales and distribution costs (2023: 2.6 mEUR).

For further information on impairment see note 4.3 Intangible assets.

2.6 Financial items

Specification of financial items

Financial
income		 Financial
expenses
EUR million 2024 2023 2024 2023
Interest on financial assets (liabilities) measured
at amortized costs		 0.1 9.9 14.8 11.8
Foreign exchange losses - - 2.6 7.7
Interest, lease liabilities - - 3.2 2.7
Other financial items 1.0 0.5 2.7 2.9
Total 1.1 10.4 23.3 25.1

Financial items, net represented a cost of 22.2 mEUR in 2024 compared to a cost of 14.7 mEUR in 2023. Financial income decreased by 9.3 mEUR, while financial expenses decreased by 1.8 mEUR compared to 2023.

The decrease in the interest income was primarily due to the realization of an interest cap of 9.6 mEUR in 2023.The decrease in financial expenses was primarily driven by lower foreign exchange losses, partly offset by higher interest expenses.

Accounting policy

Financial income includes interest, dividends, gains on receivables and transactions denominated in foreign currencies, amortization of financial assets etc. Positive changes in the fair value of derivative financial instruments not designated as hedging arrangements are also included.

Financial expenses include interest, losses on and impairment of securities, payables and transactions denominated in foreign currencies, and amortization of financial liabilities, including lease commitments etc. Negative changes in the fair value of derivative financial instruments not designated as hedging arrangements are also included.

2.7 Tax

Tax recognized in the income statement

EUR million 2024 2023
Tax for the year is specified as follows:
Tax on profit for the year 11.9 12.0
Tax on other comprehensive income -0.2 -3.1
Total tax for the year 11.7 8.9
Tax on profit for the year is specified as follows:
Current tax on profit for the year 14.1 17.2
Deferred tax current year 1.4 -1.4
Prior year adjustment, current and deferred tax -3.6 -3.8
Total tax on profit for the year 11.9 12.0
Tax on other comprehensive income is specified as follows:
Tax on value adjustment of hedging instruments 0.1 -3.1
Tax on actuarial gains on defined benefit plans -0.3 -
Total tax on other comprehensive income -0.2 -3.1

The effective tax rate in 2024 of 25.2% was in line with 2023, where the effective tax rate came to 25.4%. The effective tax rate was impacted negatively by an increase in the provision for uncertain tax positions of 2.4 mEUR and positively impacted by prior year tax adjustments of 3.6 mEUR.

The uncertain tax positions include considerations, created by complex legislation subject to interpretation, in the countries where the Group operates. In response to the tax risks connected to cross border activities, Nilfisk has made tax-related provisions in accordance with IAS 12, IAS 37 and relevant interpretations, such as IFRIC 23. Nilfisk is engaged in dialogue with tax authorities regarding cases of varying scope. Appropriate provisions and recognition of uncertain tax positions has been made where the aggregated probability of the tax position being upheld is considered to be less likely than not.

Tax rate

EUR million 2024 2023
Reconciliation of the effective tax rate for the
year:
Calculated tax on profit before income taxes 10.4 22.0% 10.4 22.0%
Adjustment of calculated tax in foreign
subsidiaries relative to 22%		 1.1 2.3% 0.2 0.5%
Tax effect of:
Non-deductible expenses/non-taxable income 1.1 2.3% 1.8 3.8%
Uncertain tax position 2.4 5.1% 0.2 0.4%
Tax assets valuation allowances 0.5 1.1% 0.2 0.4%
Change in tax rate - - -0.2 -0.4%
Other taxes and adjustments - - 1.0 2.1%
Prior year adjustment -3.6 -7.6% -1.6 -3.4%
Effective tax rate 11.9 25.2% 12.0 25.4%

Pillar II

The legislation related to the OECD Pillar II initiative is in force and applies to financial years beginning on or after January 1, 2024. Nilfisk is not expected to be materially impacted by the rules and local implementation hereof. Most countries where Nilfisk has operations impose taxation in excess of 15%, meaning that most countries are covered by the transitional Safe Harbour rules.

For 2024 two countries were not covered by the transitional Safe Harbour rules and also showed a GloBE effective tax rate lower than 15%, resulting in a tax provision of 11 kEUR. Other countries not covered by the transitional Safe Harbour rules are subject to a GloBE effective tax rate in excess of 15%.

As such, the new rules and local implementation hereof are not expected to result in either materially increased tax payments or changes to the effective tax rate.

Key accounting estimates

The Group recognizes deferred tax assets, including the expected value of tax losses carried forward, based on an assessment of the recoverability of the deferred tax assets. The assessment of the recoverability of the deferred tax assets involves estimates by the Executive Management Board as to the likelihood of the realization of the deferred tax assets within a foreseeable future. This depends on a number of factors including whether there will be sufficient taxable profits available in future periods, against which the tax losses carried forward can be utilized.

The Executive Management Board's assessment of the recoverability of the deferred tax assets is based on taxable income projections which contain estimates of and tax strategies for taxable income for the next five years, taking into account general market conditions and the Nilfisk Group's future development outlook. The projections are based on the Group's budget and mid-term targets, and are inherently subject to uncertainty, as the realization of the projections are dependent on the outcome of future events. In the event that actual future taxable profits generated are less than expected, and depending on the tax strategies that the Nilfisk Group may be able to implement, impairment of the deferred tax assets may be required.

It is the Executive Management Board's assessment that the budgets and mid-term targets are achievable and support the recognized deferred tax assets. Nilfisk operates in a large number of tax jurisdictions where tax legislation is complex and subject to interpretation. Management makes judgments on uncertain tax positions to ensure recognition and measurement of tax assets and liabilities. Nilfisk applies the exception available in IAS 12 from calculating the effects of deferred taxes relating to the OECD Pillar II initiative. A limited proportion of Nilfisk's profits may be under the risk of being subject to Pillar II income taxes, with an estimated immaterial impact on the effective tax rate.

2.7 Tax – continued

Deferred tax assets and liabilities

EUR million Temporary differences
at January 1		 Foreign currency
translation adjustment		 Recognized
in profit for the year		 Recognized in other
comprehensive income		 Temporary differences
at December 31
2024
Intangible assets -13.5 -0.2 4.4 - -9.3
Property, plant, and equipment -1.3 -0.2 2.7 - 1.2
Other non-current assets 0.8 - -0.6 - 0.2
Current assets -0.6 0.1 -1.1 - -1.6
Other non-current liabilities 5.0 0.1 0.8 0.2 6.1
Current liabilities 15.2 0.2 -2.0 - 13.4
Tax base of tax loss carryforwards and credits 14.2 0.1 -1.1 - 13.2
Valuation allowances -3.3 -0.2 2.2 - -1.3
Net deferred tax 16.5 -0.1 5.3 0.2 21.9
2023
Intangible assets -15.0 -0.1 1.6 - -13.5
Property, plant, and equipment -2.4 -0.1 1.2 - -1.3
Other non-current assets -0.3 - 1.1 - 0.8
Current assets -1.1 0.1 0.4 - -0.6
Other non-current liabilities 4.0 0.0 -2.1 3.1 5.0
Current liabilities 15.7 -0.2 -0.3 - 15.2
Tax base of tax loss carryforwards and credits 13.8 - 0.4 - 14.2
Valuation allowances -1.4 - -1.9 - -3.3
Net deferred tax 13.3 -0.3 0.4 3.1 16.5
EUR million 2024 2023
Presentation of deferred tax:
Deferred tax assets 23.5 23.4
Deferred tax liabilities -1.6 -6.9
Net deferred tax, December 31 21.9 16.5

Accounting policy

Current tax payable and receivable is recognized in the statement of financial position as tax computed on the taxable income for the year, adjusted for tax on taxable income for prior years and for prepaid tax.

Tax for the year is comprised of current and deferred tax on profit for the year, including adjustments to previous years and changes due to changing tax rates. Tax for the year is recognized in the income statement, unless the tax expense relates directly to items included in other comprehensive income or equity.

Deferred tax is measured according to the balance sheet liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. Deferred tax is, however, not recognized with respect to temporary differences on initial recognition of goodwill and other items, apart from business combinations, where temporary differences have arisen at the time of acquisition without affecting the profit for the year or the taxable income.

In cases where the computation of the tax base may be made according to different tax rules, deferred tax is measured on the basis of management's intended use of the asset and settlement of the liability, respectively.

Deferred tax assets, including the tax base of tax losses allowed for carryforward, are recognized under other non-current assets at their expected utilization value, either as a set-off against tax on future income, or as a setoff against deferred tax liabilities in the same legal tax entity and jurisdiction.

Section 3 Remuneration

This section relates to the remuneration to the Board of Directors, Nilfisk Leadership Team, and Nilfisk employees, including long-term incentive programs

Key developments 2024

Staff costs increased by 3.0% to 310.9 mEUR, and the number of average full-time equivalents increased by 2.4% corresponding to 114 employees. The increase in total staff costs was driven by investments across service and R&D and merit increases.

Remuneration policy

Nilfisk's remuneration policy contains guidelines for setting and approving the remuneration to the Board of Directors and the salaries of the Nilfisk Leadership Team.

The Board of Directors receives a fixed remuneration, while the members of the Nilfisk Leadership team receive a fixed salary base, including pension and other customary non-monetary benefits such as a company car. The remuneration further includes a short-term cash-based bonus program and a long-term incentive program. This structure ensures alignment of interest between Management and shareholders of Nilfisk and maintains Management's motivation to achieve both short- and long-term strategic goals.

More information on the compensation of the Board of Directors and the Nilfisk Leadership Team is available in Nilfisk's Remuneration Report available online at Nilfisk's Investor Relations site, where the Remuneration Policy is also located.

Average salary per employee (kEUR)

3.1 Staff costs

Staff costs specification

EUR million 2024 2023
Wages and salaries 261.8 255.8
Long-term incentive programs 0.6 -0.3
Social security costs 35.4 33.9
Defined contribution plans 12.7 11.8
Defined benefit plans 0.4 0.5
Total 310.9 301.7
Number of full-time equivalents, average 4,794 4,680
Staff costs per full-time equivalents (EUR thousand) 64.9 64.5

Accounting policy

Staff costs are comprised of wages and salaries, remuneration, expenses under long-term incentive programs, pensions, etc.

3.2 Remuneration to the Board of Directors and the Nilfisk Leadership Team

Remuneration to the Nilfisk Leadership Team

Executive Nilfisk
EUR thousand Management
Board		 Leadership
Team		 Total¹
2024
Salary and pension 2,366.9 2,252.3 4,619.2
Annual bonus 146.0 148.9 294.9
Long-term incentive programs 247.0 196.4 443.4
Other benefits 67.3 146.2 213.5
Total 2,827.2 2,743.8 5,571.0
2023
Salary and pension 2,303.4 2,272.2 4,575.6
Annual bonus 451.4 379.7 831.0
Long-term incentive programs -162.3 283.4 121.1
Other benefits 98.0 137.5 235.5
Total 2,690.5 3,072.7 5,763.2

¹ Amounts disclosed also includes payments for former Nilfisk Leadership team members that have been a part of the Executive Management Board and the Nilfisk Leadership team during the reporting period. In addition to remuneration included in this table, termination costs including salary during garden leave related to former members were 0.4 mEUR in 2024 and 2.5 mEUR in 2023, partly included in special items.

Nilfisk Leadership Team

The remuneration to the Executive Management Board and the Nilfisk Leadership Team has decreased from 5.8 mEUR in 2023 to 5.6 mEUR in 2024, primarily due to lower annual bonus, partly offset by higher costs from long-term incentive programs.

Remuneration to the Board of Directors

EUR thousand 2024 2023
Board of Directors 610.4 599.6
Audit Committee 43.6 40.0
Remuneration Committee 20.0 16.3
Nomination Committee 29.1 29.1
Total remuneration to the Board of Directors 703.1 685.0

Board of Directors

The remuneration to the Board of Directors covers 11 board members in 2024 (2023: 12 board members) whereof no members have waived the remuneration (2023: 1 member).

Sustainability-targets in incentive schemes

To ensure the organization is working towards Nilfisk's sustainability commitments and targets, sustainability targets are an integral part of both long- and short-term incentive programs, supplementing the financial targets for the Nilfisk Leadership Team. The sustainability-related targets included in the incentive programs are:

  • Long-term incentive program (LTIP): The GHG Scope 3, Category 11 emissions reduction target, and is weighted at 20%.
  • Short-term incentive program (STIP): The GHG Scope 1, 2, and 3 emissions reduction targets, along with employee engagement and EcoVadis rating targets, and are weighted at 10%.

In 2024, 28% of the expensed variable remuneration to the Nilfisk Leadership Team was related to sustainability-related targets, while climate-related targets made up 2% of their total remuneration for the same year. The STIP and LTIP are governed by the Remuneration Policy and were approved at the Annual General Meeting in March 2023. Read more about Nilfisk's incentive programs in the Remuneration Report.

3.3 Long-term incentive programs

The expense for all long-term incentive programs is calculated under the provision for share-based payments in accordance with IFRS 2.

The performance share program is recognized under equity with an amount of 1.5 mEUR (2023: 1.2 mEUR).

In 2024, the 2021 performance share program vested with no conditions being met. Remaining program costs for good leavers from the 2021 program were reversed in accordance with IFRS 2. The 2022 program costs were adjusted based on the performance in the vesting period, and therefore came to an income of 0.1 mEUR in 2024. The 2023 and 2024 were a cost of 0.4 mEUR in 2024. Total long-term incentive programs including the warrant program came to a cost of 0.3 mEUR compared to 0.0 mEUR in 2023.

The table below shows the costs recognized for share-based payments in the income statement.

Recognition of long-term incentive programs

EUR million 2024¹ 2023¹
2020 performance share program - -0.1
2021 performance share program -0.3 -0.4
2022 performance share program -0.1 0.1
2023 performance share program - 0.3
2024 performance share program 0.4
Warrant program 0.3 0.1
Total long-term incentive programs 0.3 -

¹ Includes reversals and costs for long-term incentive program to former Nilfisk Leadership Team members, partly included in special items

Performance share program

In line with the remuneration policy approved by the Annual General Meeting in March 2023, the Nilfisk Leadership Team and selected key employees have been awarded performance shares with a three-year cliff vesting depending on performance measures on EBITDA before special items, Total Shareholder Return (TSR), and Sustainability targets.

In 2024, 40 employees were offered participation in the 2024 program with a total of 143,504 performance shares equal to 0.53% of the total number of shares in Nilfisk Holding A/S.

Below is an overview of outstanding performance shares at December 31.

Outstanding performance shares

Shares 2024 2023
2021 performance share program - 56,169
2022 performance share program 48,041 48,041
2023 performance share program 87,955 96,877
2024 performance share program 139,472 -
Total outstanding performance shares 275,468 201,087
The performance share program measures have been divided into three separate
categories:
1.
EBITDA bsi		 EBITDA bsi is defined as a non-market condition and is based on
the company's expectations for future financial results.
2.
TSR		 TSR is defined as a market condition which is based on a Monte
Carlo simulation to determine the expected increase in share price
over the period. Since the TSR is defined as a market condition
the valuation is fixed at grant date.
3.
Sustainability		 Sustainability performance is based on Nilfisk performance
in relation to CO2 emissions from the use of sold products,
according to category 11 of the Greenhouse Gas Protocol,
corresponding to scope 3 targets. Actual performance is reported
annually in the Sustainability Statements of the annual report.
Performance shares Number of
performance shares		 Avg. exercise price per
performance share (DKK)		 Avg. exercise price per
performance share (EUR)
2024 2023 2024 2023 2024 2023
Outstanding, January 1 201,087 289,097 162 165 22 22
Granted during the period 143,504 151,456 129 203 17 27
Forfeited during the period -12,954 -111,189 132 167 18 22
Exercised during the period - -51,231 - 133 - 18
Expired during the period -56,169 -77,046 171 133 23 18
Outstanding, December 31 275,468 201,087 143 162 19 22
Weighted average remaining contractual life (months) 16 15
Fair value at grant date (mEUR) 2.5 2.7

3.3 Long-term incentive programs – continued

Warrant program

In line with the remuneration policy approved by the Annual General Meeting in March 2023, new members of the Nilfisk Leadership Team have been awarded warrants which give the holder the right to convert one warrant into one share after a three-year vesting period at a fixed strike price, provided applicable conditions are fulfilled. In 2024, 137,197 warrants have been issued.

Below is an overview of outstanding warrants at December 31.

Outstanding warrants

Warrants 2024 2023
Warrant program June, 2023 113,145 113,145
Warrant program September, 2023 28,965 28,965
Warrant program March, 2024 46,728 -
Warrant program June, 2024 90,469 -
Total outstanding warrants 279,307 142,110
Warrants Number of warrants Avg. exercise price
per warrant (DKK)		 Avg. exercise price
per warrant (EUR)
2024 2023 2024 2023 2024 2023
Outstanding, January 1 142,110 - 200 - 27 -
Granted during the period 137,197 165,332 200 200 27 27
Forfeited during the period - -23,222 - 200 - 27
Outstanding, December 31 279,307 142,110 200 200 27 27
Weighted average remaining contractual life (months) 24 31
Fair value at grant date (mEUR) 1.1 0.6

The Black-Scholes model has been applied for calculation of the fair value of the warrants. The expected volatility is based on the historical share price volatility for the Nilfisk Holding share over a period of 3 years. It is expected that the warrants on average will be exercised between the vesting date and the expiry date.

Average assumptions for Black-Scholes calculation 2024
Share price (DKK) 134.6
Strike price (DKK) 200
Time to maturity (years) 2.0
Risk-free rate 2.9%
Volatility 41.9%
Dividends 0%

Accounting policy

The Nilfisk Group's long-term incentive programs include a performance share program and a warrant program for Nilfisk Leadership Team and selected key employees.

Performance share program

The performance share program is accounted for as an equity-settled sharebased payment to employees and measured at the fair value of the option.

The Total Shareholder Return (TSR vesting condition) is measured at grant date, whereas estimated EBITDA (vesting condition) will be updated based on the plans approved by the board.

The fair value is expensed on a straight-line basis over a period of three years. At the end of the period the participants will be awarded shares corresponding to the achieved targets.

Warrant program

The warrant program is accounted for as an equity-settled share-based payment to employees and measured at the fair value of the option. The fair value of the program is measured at grant date.

The fair value is expensed on a straight-line basis over a period of three years. At the end of the period the participants will have the right to convert each warrant into one share, provided applicable conditions are fulfilled. For accounting policy for hedging of LTI programs see Note 6.3.

Denmark USA Hungary China Other

Capital employed (mEUR)

RoCe

Section 4 Capital employed

This section covers Nilfisk Group's investments in non-current assets that form the basis for the Group's operations, and non-current liabilities arising as a result thereof.

The non-current liabilities in this section are regarded as non-interest-bearing and are comprised of employee pension benefits and provisions. Interest-bearing receivables and liabilities are covered in Note 6.

The Nilfisk Group mainly invests in production equipment to ensure satisfactory delivery flow to customers. Furthermore, rental machines have become an increasing part of the non-current assets. Investments in intangible assets are driven by development projects focusing on renewing and optimizing the product portfolio and on software in relation to front-end applications and ERP systems.

Production sites in Nilfisk are mostly assembly lines, and they are therefore not capital-intensive in terms of fixed assets.

Key developments 2024

Capital employed increased by 62.3 mEUR compared to 2023. The development in capital employed was largely driven by an increase in working capital.

In 2024, Nilfisk's return on capital employed (RoCE) increased by 0.1 percentage point to 12.8% from 12.7% in 2023. The increase was mainly driven by the development in capital employed.

4.1 Capital employed

EUR million 2024 2023
Intangible assets 256.3 243.4
Property, plant, and equipment 115.4 112.8
Investments in associates 37.6 34.9
Other investments and receivables 3.2 2.8
Deferred tax 21.9 16.5
Provisions -19.5 -19.0
Pension liabilities -4.4 -3.8
Working capital 179.0 139.6
Capital employed 589.5 527.2

4.2 Impairment test

Accounting policy

Goodwill and intangible assets with indefinite useful lives are tested annually for impairment. Development and software projects in progress are also tested annually for impairment.

The carrying amount of goodwill is tested for impairment together with the other non-current assets in the cash-generating unit to which goodwill is allocated and written down to the recoverable amount over the income statement if the carrying amount is higher. The recoverable amount is generally computed as the present value of the expected future net cash flows (value in use) from the business or activity (cash-generating unit) to which goodwill is allocated.

Other non-current assets

The carrying amount of other non-current assets is reviewed annually for indication of impairment. If such an indication exists, the recoverable amount of the asset is determined. The recoverable amount is the fair value of the asset

less anticipated costs of disposal, or its value in use, whichever is higher. The value in use is calculated as the present value of expected future cash flows from the asset or the cash-generating unit of which the asset is part.

Impairment loss

Impairment is recognized if the carrying amount of an asset or a cashgenerating unit exceeds the respective recoverable amount thereof. The impairment is recognized in the income statement under the functions it relates to. Gain or loss of divestment of businesses is recognized as special items. Impairment of goodwill is not reversed. Impairment of other assets is reversed in the event of changes having taken place in the conditions and estimates on which the impairment calculation was based. Impairment is only reversed if the new carrying amount of the asset does not exceed the carrying amount that would have applied after amortization if the asset had not been impaired.

Key accounting judgments

Allocation of goodwill on cash-generating units

Goodwill is allocated to the reportable segments.

The calculation of EBITDA for each cash-generating unit is based on certain judgment relating to allocation of future EBITDA which is allocated to the cashgenerating units. The change in the goodwill balances from January 1, 2024 to December 31, 2024 relates to exchange rate adjustments during the year.

The carrying amount of goodwill per cash-generating unit as of December 31, is as follows:

EUR million 2024 2023
Professional 67.5 66.6
Service 20.0 19.8
Specialty 82.1 81.2
Consumer 1.1 1.1
Total 170.7 168.7

4.2 Impairment test - continued

Key accounting estimates

Impairment test on goodwill allocated to cash-generating units as of December 31, 2024

Impairment tests are performed for each cash-generating unit (CGU) based on budgets for 2025 and forecasts for the period 2026-2029. The impairment tests performed for the CGUs show comfortable headroom as of December 31, 2024. No indication of impairment exists in any of the CGUs.

Key assumptions applied

The future cash flow projections are based on Management's estimates of the Nilfisk Group's development in the next five years, which are based on key assumptions and considerations. Risks and uncertainties posed by a broader industrial macroeconomic slowdown are included in Management's estimates.

Macroeconomic environment factors

Macroeconomic challenges, global conflict, and natural disasters continued to impact markets in 2024. These had economic implications, including muted demand across several key markets. Global instability contributed to the deterioration of the overall geopolitical and economic climate.

In the future cash flow projection, Nilfisk has assessed and considered the impact from global instability, and natural disasters that could trigger an increase in material costs in both the short and long term. The negative impact from increasing material costs is countered by continued investment initiatives that strengthen Nilfisk's supply chain robustness, as well as investments in more sustainable products that support growth.

Scarcity and the rising cost of labor, tighter regulatory requirements for health and safety standards, and a sharp increase in sustainability requirements have also been taken into consideration. To counter this, investment initiatives towards digital transformation, marketing initiatives, and sustainable products combine to enhance Nilfisk's value proposition and are expected to drive demand for Nilfisk products and services in the longer term. Nilfisk's customers face increasing requirements for more sustainable production, energy efficiency, and reporting requirements.

As a result, Nilfisk's customers are increasingly focused on having a reliable partner that can support them in their own sustainability journey. These matters were followed up from last year and continue to be discussion points in the cash flow projection considerations. These are addressed through Nilfisk's strong sustainability position and sustainability growth targets for each CGU, both shortand long-term.

Climate-related risk and uncertainties related to Nilfisk's business and increased compliance requirements were assessed in the cash flow projection period, both from a short- and long-term perspective. Based on experience from the incidents in 2022 caused by a tornado destroying Nilfisk's US Distribution Center and in 2024 caused by a hurricane damaging Nilfisk's site in Fort Pierce, Florida. Nilfisk acknowledges the ongoing climate change, and the long-term effect hereof was included in the projection of future growth on CGU level.

Revenue growth

Projections in the forecasting period for the individual CGUs are estimated on the basis of expected market development including strategic initiatives, autonomous machines, and the macroeconomic environment. Past experience is taken into consideration as well as the expected impact from growth initiatives.

Gross margin development

When estimating the CGUs margin development in the forecasting period, past experience and improvements are taken into consideration. The expected impact of initiatives such as component standardization through value engineering and platforming, macroeconomic environment factors, and other initiatives is taken into consideration for the relevant CGUs.

Terminal growth

The terminal growth rate does not exceed the expected long-term average growth rate including inflation for the segments and countries in which Nilfisk operates. The applied terminal growth rate for all cash generating units was 1.0%, unchanged from 2023.

Discount rate

A pre-tax discount rate of 7.7% and a post-tax discount rate of 7.3% compared to 7.5% and 7.2% respectively in 2023 has been applied in the performed impairment tests. The discount rate has been applied to all CGUs, assuming the targeted ratio between the market value of the debt and equity value. The increase in interest rates has not impacted the calculated discount rate significantly compared to 2023.

Net working capital

The development is linked to the current level of net working capital, budgets, and revenue growth.

Capital expenditure

The development is linked to the budgets and expected future activity level, including only reinvestments.

4.2 Impairment test - continued

Key accounting estimates (continued)

Development projects

Development projects/products in progress includes capitalized development costs for projects that support the strategic direction to become a global leading cleaning provider with focus on digitalization and development of new products within autonomous cleaning.

The value of the development projects is dependent on a number of factors, including the timely and successful completion of development projects currently underway. Since the products are under development or in the early stages of the product life cycle, any assessment of market potential, product performance and viability, customer demand, potential impact from technological innovations and competitor actions, marketing and services cost, the ability to scale production and reduce production costs etc. is inherently subject to uncertainty. These uncertainties are assessed throughout the maturity of the projects and as such, the risk is reduced the closer the projects get to the completion stage. Where possible, the estimates are based on past experience, but are also dependent on the outcome of future events, which will be highly project dependent. It is the Executive Management Board's assessment that a significant market potential exists, and that the value-in-use of development projects in progress exceed the carrying amounts under the assumptions mentioned above.

Sensitivity

The Group has conducted an analysis of the sensitivity of the impairment test to determine the lowest forecast growth rates and/or highest discount rates (WACC) that can occur in the CGUs leading to any impairment loss. The sensitivity tests calculate the impact of higher interest rates and challenging macroeconomic situations. Management believes that any reasonable possible change in the key assumptions on which the recoverable amount is based would not cause the carrying amount to exceed the recoverable amount of the related segments (CGUs).

4.3 Intangible assets

2024 2023
EUR million
Goodwill		 Trademarks1 Customer
related assets		 Development
projects
completed		 Software,
know-how,
patents and
competition
clauses		 Development
projects and
software in
progress		 Total Goodwill Trademarks1 Customer
related assets		 Development
projects
completed		 Software,
know-how,
patents and
competition
clauses		 Development
projects and
software in
progress		 Total
Costs, January 1
168.7		 23.7 30.9 185.3 100.3 23.1 532.0 170.4 24.1 31.6 168.6 98.2 23.6 516.5
Exchange rate adjustments 2.0
0.7		 1.3 0.1 0.9 - 5.0 -1.7 -0.4 -0.7 -0.8 -0.8 - -4.4
Additions - -
-		 1.4 1.5 29.3 32.2 - - - 7.6 1.2 13.6 22.4
Disposals - -
-		 -22.3 -4.0 -0.1 -26.4 - - - -0.6 -1.9 - -2.5
Transferred between classes of assets - -
-		 9.6 8.6 -18.2 - - - - 10.5 3.6 -14.1 -
Costs, December 31
170.7		 24.4 32.2 174.1 107.3 34.1 542.8 168.7 23.7 30.9 185.3 100.3 23.1 532.0
Amortization and impairment,
January 1		 -
-19.0		 -28.4 -153.2 -84.8 -3.2 -288.6 - -18.0 -27.8 -143.7 -79.6 -3.1 -272.2
Exchange rate adjustments -
-0.4		 -1.3 - -0.9 - -2.6 - 0.2 0.7 0.6 0.8 - 2.3
Amortization for the year -
-1.3		 -1.4 -10.6 -8.0 - -21.3 - -1.2 -1.3 -10.7 -7.8 - -21.0
Impairment - -
-		 - -0.2 -0.1 -0.3 - - - - - -0.1 -0.1
Disposals - -
-		 22.3 4.0 - 26.3 - - - 0.6 1.8 - 2.4
Amortization and impairment,
December 31		 -
-20.7		 -31.1 -141.5 -89.9 -3.3 -286.5 - -19.0 -28.4 -153.2 -84.8 -3.2 -288.6
Carrying amount, December 31
170.7		 3.7 1.1 32.6 17.4 30.8 256.3 168.7 4.7 2.5 32.1 15.5 19.9 243.4
Investment ratio (% of amortizations) - -
-		 104% 126% - 237% - - - 169% 62% - 174%

1 Trademarks with a carrying amount of 2.6 mEUR (2023: 2.6 mEUR) are not amortized, as they are regarded as having an indefinite useful life.

Impairment losses

In 2023 impairment losses of 0.1 mEUR were included in sales and distribution costs, related to outphased software.

In 2024 impairment losses of 0.3 mEUR were realized. Hereof, 0.1 mEUR was related to an outphased R&D project and 0.2 mEUR related to an outphased software project.

4.3 Intangible assets – continued

Accounting policy

Intangible assets are initially recognized in the statement of financial position at cost. Subsequently, intangible assets are measured at cost less accumulated impairment losses.

Goodwill

The carrying amount of goodwill is allocated to the Nilfisk Group's cashgenerating units at the acquisition date. The identification of cash-generating units is based on the managerial structure and internal financial control. As a result of the integration of acquisitions in the existing Nilfisk Group, and identification of operating segments based on the presence of segment managers, the Executive Management Board has assessed that the smallest cash-generating units to which the carrying amount of goodwill can be allocated during testing for impairment are the reportable segments. The reportable segments are comprised of the Nilfisk Group's operating segments without aggregation (Note 2.1 Segment information).

Development projects

Development projects are recognized as intangible assets when the projects are clearly defined and identifiable, for which technical feasibility, adequacy of resources and a potential future market or internal utilization can be demonstrated, and where it is intended to manufacture or utilize the asset. This assumes that the costs can be reliably determined, and that there is also adequate certainty that the future earnings or net selling price can cover the carrying amount as well as the development costs necessary for finalizing the project.

Capitalized development projects are measured at cost less accumulated amortization and impairment losses. The costs include wages, amortization and other costs relating to the Nilfisk Group's development activities.

Development projects and software in progress

Internally generated intangible assets are recognized when the technical feasibility, adequacy of resources, and a potential market or internal utilization can be demonstrated, provided the costs can be reliably determined and it is probable that the project will generate future earnings.

Initial cost of the internal generated asset is the sum of expenditures incurred from the date when the asset first meets the recognition criteria. This includes all directly attributable cost necessary to create, produce, and prepare the asset to be capable of operating in the manner intended by management. This includes cost of material and services and employee benefits.

Modularity

Modularity projects include a platform and connected products. When the platform is at a maturity that can commence the development of the products, the modularity platform is assessed to be financially completed and amortization will start. Any future cost related to the platform will be capitalized as part of the development cost for the products.

Modularity products share a common platform but are capitalized as separate assets when the criteria for recognition is met. The useful life of the assets is assessed separately. The platform is expected to have a useful life of 15 years and the useful life of the products will be within the range of 3-8 years, depending on the type of product.

Amortization

Intangible assets are amortized on a straight-line basis over the expected useful life which is:

Trademarks, etc. Indefinite or 3-10 years
Customer related assets 3-15 years
Development projects 3-8 years
Development projects, platform – modularity 15 years
Software, know-how, patents
and competition clauses		 2-15 years

Intangible assets with an indefinite useful life are not amortized but are tested annually for impairment.

4.4 Property, plant, and equipment

2023
EUR million Land and
buildings		 Plant and
machinery		 Tools and
equipment		 Assets under
construction
incl. prepayment		 Total Land and
buildings		 Plant and
machinery		 Tools and
equipment		 Assets under
construction
incl. prepayment		 Total
Costs, January 1 14.3 15.0 124.7 5.4 159.4 18.4 17.4 145.2 4.3 185.3
Exchange rate adjustments 0.4 0.2 -0.7 -0.1 -0.2 -0.8 -0.2 -1.0 - -2.0
Additions 0.2 0.4 11.7 11.4 23.7 - 0.1 8.5 7.0 15.6
Disposals -0.1 -0.5 -10.4 -1.0 -12.0 -3.3 -3.2 -32.5 -0.5 -39.5
Transferred between classes of assets - 2.5 9.8 -12.3 - - 0.9 4.5 -5.4 -
Costs, December 31 14.8 17.6 135.1 3.4 170.9 14.3 15.0 124.7 5.4 159.4
Depreciation and impairment, January 1 -8.0 -10.4 -94.8 - -113.2 -11.5 -12.5 -115.9 - -139.9
Exchange rate adjustments -0.2 0.1 0.2 - 0.1 0.4 0.1 1.1 - 1.6
Depreciation for the year -0.3 -1.3 -11.9 - -13.5 -0.2 -1.2 -12.2 - -13.6
Disposals 0.1 0.5 8.4 - 9.0 3.3 3.2 32.2 - 38.7
Depreciation and impairment,
December 31		 -8.4 -11.1 -98.1 - -117.6 -8.0 -10.4 -94.8 - -113.2
Carrying amount, December 31 6.4 6.5 37.0 3.4 53.3 6.3 4.6 29.9 5.4 46.2
Investment ratio (% of depreciation) 67% 223% 181% - 267% - 83% 107% - 154%

Impairment losses

No impairment losses have been recognized in 2024 in line with 2023.

4.4 Property, plant, and equipment – continued

Accounting policy

Land and buildings, plant and machinery, tools and equipment, and other property, plant, and equipment are measured at cost less accumulated depreciation and impairment losses.

The costs are comprised of the purchase price and any costs directly attributable to the acquisition until the asset is ready for use. The costs of selfconstructed assets are comprised of costs of materials, components, subcontractors, and wages. The costs are supplemented by the present value of estimated liabilities related to dismantling and removing the asset and restoring the site on which the asset was utilized.

Subsequent costs, such as those relating to replacement of parts of an item of property, plant, and equipment, are recognized in the carrying amount of the asset if it is likely that the costs will result in future economic benefits for the Nilfisk Group. The carrying amount of the replaced parts is derecognized in the statement of financial position and recognized in the income statement. All other costs relating to ordinary repair and maintenance are recognized in the income statement as incurred.

If individual parts of an item of property, plant, and equipment have different useful lives, they are depreciated separately.

Property, plant, and equipment are depreciated on a straight-line basis over the expected useful lives which is:

Buildings 8-25 years*
Plant and machinery 3-20 years
Tools and equipment 3-15 years
Land not depreciated
*
In average 22 years

The basis of depreciation is calculated according to the residual value less impairment losses. The residual value is determined at the acquisition date and reviewed annually. If the residual value exceeds the carrying amount, depreciation is discontinued.

When changing the depreciation period or the residual value, the effect on the depreciation is recognized prospectively as a change in accounting estimates.

Property, plant, and equipment under construction and prepayments are measured at cost. When ready for use, the asset is transferred to the relevant category and depreciated.

4.5 Right-of-use assets

2024 2023
EUR million Land and
buildings		 Plant and
machinery		 Tools and
equipment		 Total Land and
buildings		 Plant and
machinery		 Tools and
equipment		 Total
Costs, January 1 101.5 4.9 46.0 152.4 87.6 4.8 39.0 131.4
Exchange rate adjustments - - -0.5 -0.5 -0.8 - -0.6 -1.4
Additions 11.6 1.0 15.4 28.0 21.9 1.5 15.1 38.5
Disposals -4.8 -0.7 -6.3 -11.8 -7.2 -1.4 -7.5 -16.1
Costs, December 31 108.3 5.2 54.6 168.1 101.5 4.9 46.0 152.4
Depreciation and impairment, January 1 -57.4 -3.5 -24.9 -85.8 -48.8 -3.3 -21.9 -74.0
Exchange rate adjustments 0.3 - 0.6 0.9 0.7 - 0.2 0.9
Depreciation for the year -16.5 -0.9 -11.4 -28.8 -16.0 -0.9 -10.3 -27.2
Impairment - - - - - - - -
Disposals 2.0 0.3 5.4 7.7 6.7 0.7 7.1 14.5
Depreciation and impairment, December 31 -71.6 -4.1 -30.3 -106.0 -57.4 -3.5 -24.9 -85.8
Carrying amount, December 31 36.7 1.1 24.3 62.1 44.1 1.4 21.1 66.6

Impairment losses

No impairment losses have been recognized in 2024 and 2023.

Not recognized right-of-use assets and liabilities

The Group has signed lease contracts in which the assets were not available for use by the Group at year-end. The value of these right-of-use assets and corresponding liabilities are not included in the statement of financial position but will be included when the assets are available for use by the Group. Total minimum payments for signed but not recognized contracts are 2.4 mEUR (2023: 1.7 mEUR)

Lease contracts recognized as overhead costs

Short-term and low value lease contracts are expensed directly as overhead costs. For 2024, the overhead costs amounted to 1.5 mEUR (2023: 0.8 mEUR). The expected overhead costs for 2025 relating to short-term and low value lease contracts are 1.5 mEUR (2023: 1.6 mEUR for 2024).

Payments relating to lease arrangements

Total cash-out for right-of-use assets recognized in the statement of financial position in the year was 31.8 mEUR (2023: 29.1 mEUR). The amount is made up of repayment of lease liabilities of 28.6 mEUR (2023: 26.4 mEUR) and interest of 3.2 mEUR (2023: 2.7 mEUR). As of December 31, 2024 the estimated useful life can be summarized as follows:

Leased buildings: 1-7 years, with a remaining average of 1.9 years (2023: 1-9 years with average of 1.8 years)

Other leases: 1-6 years with a remaining average of 2.0 years (2023: 1-6 years with average of 1.6 years). Average discount rate for active contracts as of December 31, 2024 was 5.3% (2023: 4.5%).

See Note 6.1 for development of the lease liabilities. See Note 6.3 for maturity analysis of the lease liabilities.

Accounting policy

Leases are recognized as right-of-use assets with the corresponding liability at the time the asset is available for use by the Group. Assets and liabilities arising from a lease are measured on a present value basis.

Lease liabilities are comprised of expected fixed payments throughout the expected lease period (including options to extend the lease when exercise is reasonably certain), less any lease incentives. The lease payments are discounted using the contract's internal discount rate or the Group's incremental borrowing rate.

The costs of right-of-use assets are comprised of the calculated lease liabilities, payments made prior to entering the lease, initial direct costs, and expected restoration costs.

Right-of-use assets and lease liabilities are re-measured when a factual or contractual change is executed or if a significant event or change affects the expected use of the assets. The impact is discounted to a present value basis.

Right-of-use assets are measured at cost, less accumulated depreciation and impairment losses. When changing the value of right-of-use assets through remeasurement or when changing the depreciation period, the effect on the depreciation is recognized prospectively as a change in accounting estimates.

Right-of-use assets are depreciated on a straight-line basis of the expected length of the contract or the expected useful lives of the assets, whichever is the shorter.

Lease costs for low value assets and short-term leases are included as overhead costs throughout the period based on a straight-line basis.

4.6 Pension liabilities

Most employees in the Nilfisk Group are covered by pension plans, primarily in the form of defined contribution-based plans or alternatively by defined benefit plans.

The Nilfisk Group companies contribute to these plans either directly or by contributing to pension funds administered independently. The nature of such plans varies according to legislative and regulatory regimes, rules regarding tax, and the economic conditions in the countries in which the employees work. The contributions are usually based on employee salary and seniority. The liability relates to pensions for already retired staff as well as for employees retiring in the future.

The Nilfisk Group's defined benefit plans primarily relate to the UK, France, and Switzerland.

Net liabilities recognized in the statement of financial position

2024 2023
EUR million Present value
of obligations		 Fair value of
plan assets		 Net obligation Present value
of obligations		 Fair value of
plan assets		 Net obligation
Obligations and assets, January 1 26.2 22.4 3.8 25.5 21.1 4.4
Recognized under staff costs in the income statement:
Current service cost 0.4 - 0.4 0.4 - 0.4
Calculated interest expenses/income 0.8 0.8 - 0.9 0.8 0.1
Total 1.2 0.8 0.4 1.3 0.8 0.5
Recognized in other comprehensive income:
Actuarial gains from changes in demographic assumptions - - - -0.2 - -0.2
Actuarial gains from changes in financial assumptions 0.6 - 0.6 - - -
Other return on plan assets - -0.5 0.5 - -0.2 0.2
Total actuarial gains on defined benefit plans 0.6 -0.5 1.1 -0.2 -0.2 -
Other changes:
Contributions to plans 0.2 1.0 -0.8 0.7 0.9 -0.2
Benefits paid/received -1.5 -1.3 -0.2 -1.7 -1.1 -0.6
Exchange rate adjustments 0.5 0.4 0.1 0.6 0.9 -0.3
Total -0.8 0.1 -0.9 -0.4 0.7 -1.1
Net recognized plan obligations and assets, December 31 27.2 22.8 4.4 26.2 22.4 3.8
EUR million 2024 2023
Plan assets recognized as follows:
Securities with quoted market price 16.4 14.4
Cash 1.0 -
Other 5.4 8.0
Total 22.8 22.4

4.6 Pension liabilities – continued

Accounting policy

The Nilfisk Group has contracted pension plans and similar arrangements with the majority of its employees.

Liabilities with respect to defined contribution-based pension plans for which the Nilfisk Group makes fixed regular payments to independent pension companies are recognized in the income statement in the period to which they relate. Any contributions outstanding are recognized in the statement of financial position under other payables.

In the case of defined benefit plans, an annual actuarial calculation (the Projected Unit Credit Method) is made of the present value of future benefits payable under the plan. The present value is determined based on assumptions about the future development in variables such as salary levels, interest rates, inflation, and mortality. The present value is determined only for benefits earned by employees from their employment with the Nilfisk Group. The actuarial present value less the fair value of any plan assets is recognized in the statement of financial position under employee benefits.

Pension expenses for the year are recognized in the income statement based on actuarial estimates and financial expectations at the start of the year. The differences between calculated return and realized return on plan assets and liabilities are designated actuarial gains or losses and recognized in other comprehensive income.

If a pension plan constitutes a net asset, the asset is only recognized if it offsets cumulative actuarial losses or future refunds from the plan, or if it will lead to reduced future payments to the plan.

Sensitivity

The table below shows the sensitivity of the pension liability to changes in the key assumptions

EUR million 2024 2023
0.5% point increase in the discount rate -1.6 -1.5
0.5% point decrease in the discount rate 1.8 1.7
0.5% point increase in the future salary increases 0.2 0.1
0.5% point decrease in the future salary increases -0.1 -0.1

4.7 Provisions

Development in provisions

EUR million Warranties Other Total
2024
Provisions, January 1 10.5 8.5 19.0
Exchange rate adjustments 0.1 0.2 0.3
Provisions made during the year 9.6 3.5 13.1
Used during the year -10.0 -2.5 -12.5
Reversed during the year - -0.4 -0.4
Provisions, December 31 10.2 9.3 19.5
Provisions are presented as:
Non-current liabilities - 7.4 7.4
Current liabilities 10.2 1.9 12.1
Total 10.2 9.3 19.5
2023
Provisions, January 1 10.5 7.4 17.9
Exchange rate adjustments -0.2 -0.1 -0.3
Provisions made during the year 10.8 5.4 16.2
Used during the year -10.3 -4.1 -14.4
Reversed during the year -0.3 -0.1 -0.4
Provisions, December 31 10.5 8.5 19.0

Provisions are presented as:

Total 10.5 8.5 19.0
Current liabilities 10.5 3.6 14.1
Non-current liabilities - 4.9 4.9

Key accounting estimates

The amount recognized as a provision is the Executive Management Board's best estimate of the amount required to settle the obligation.

Provisions for legal cases represent management's best estimate of the Group's liability and the estimate is further supported by external legal assessment.

Accounting policy

Provisions are recognized when, as a result of events arising before or at the balance sheet date, the Nilfisk Group has a legal or a constructive obligation, and it is more likely than not that the settlement is expected to result in an outflow of resources.

When measuring provisions, the costs required to settle the obligation are discounted if this significantly affects the measurement of the liability. A pre-tax discount rate is applied that reflects the current market interest rate and the specific risks relating to the obligation. Changes in present values during the year are recognized under financial expenses.

Warranty commitments are recognized in step with sale of goods and services based on the level of warranty expenses incurred in previous years. Serial fault is included as a warranty provision. Serial faults only become a warranty at the time the items have left the factory and are up for sale. Until then, handling faults are part of the quality review and are recognized as such cost under cost of sales.

Other provisions include mainly provisions related to restoration of leased facilities, restructuring of business, and legal cases.

Provisions for restoring leased facilities when vacated are measured at the present value of the expected clearance and closure obligation at the balance sheet date. The provision is based on existing encumbrances and estimated

costs discounted to present value. Specific risks considered attached to the obligation are included in the estimated costs. A discount rate is applied that reflects the current market interest rate. The obligations are included as they occur and are continuously adjusted to reflect changed requirements and price levels, etc. The present value of the costs is included in the costs of the relevant tangible assets and depreciated accordingly. The increase in the present value over time is recognized in the income statement under financial expenses.

The timing of the restoration provision will depend on the expected length of the contract and will be reassessed when contract terms change. The amount will be reassessed if there are significant market changes or if there are changes in contract terms.

The timing and amount of the restructuring provision will be assessed on a case-by-case basis and will depend on the type of restructuring and hence the cost associated with the restructuring. The uncertainties will naturally depend on the specific project and will be reduced the closer to the completion date the project gets.

Provision for legal cases is assessed on an ongoing individual basis and at least quarterly based on the developments in the case. The amount of the legal provisions is based on internal and external legal advice and established precedent. Timing of the provision is assessed at least annually.

Section 5 Working capital

This section covers the Nilfisk Group's working capital.

Working capital represents the assets and liabilities necessary to support day-to-day operations. Working capital is defined as current assets, less current liabilities and other non-current liabilities, excluding interest-bearing items and provisions, but including derivatives.

Key developments in 2024

Inventory levels increased during 2024, ending 32.6 mEUR higher than at the end of 2023. This was due to stock built up for new product launches and consumer products, alongside timing in deliveries leading to higher goods in transit.

Trade receivables ended 17.4 mEUR above last year and amounted to 156.1 mEUR, mainly from higher sales activities at the end of the year and partly from the nonrecourse factoring program. Days sales outstanding increased compared to 2023.

Working capital overall increased by 39.4 mEUR ending at 179.0 mEUR with a working capital ratio of 16.9%.

5.1 Working capital

The working capital bridge is split between cash flows and non-cash changes.

Cash flows

Cash flows in working capital reflect the working capital disclosed in the cash flow statement.

Non-cash changes

Foreign exchange translations

As per the cash flow accounting policy, the cash flow is calculated by applying to the foreign currency amount the average exchange rate between the functional currency of the Group and the foreign currency at the date of the cash flow.

As the working capital in the Statement of Financial Position is translated into the year-end exchanges rates, the working capital bridge will be impacted by a foreign exchange translation.

Provision

Provision includes provision for expected credit loss and provision for inventory obsolescence.

Reclassifications

Reclassification is comprised of both reclassifications within working capital but also reclassification from different sections in the Statement of Financial Position. The net movement of -6.1 mEUR includes mainly tax, leasing assets (with Nilfisk as lessor) and hedging.

2024 2023
Non-cash changes Non-cash changes
January 1 Cash flows Exchange rate
adjustments		 Provisions Reclas
sifications		 December 31 January 1 Cash flows Exchange rate
adjustments		 Provisions Reclas
sifications		 December 31
200.5 40.6 0.7 -1.0 -7.7 233.1 220.2 -7.8 -3.3 -1.7 -6.9 200.5
138.7 15.0 0.2 2.2 - 156.1 166.7 -22.3 -5.4 -0.3 - 138.7
28.9 7.5 -0.7 - 2.0 37.7 34.7 0.5 -0.7 - -5.6 28.9
3.5 - - - -1.2 2.3 3.8 - - - -0.3 3.5
-3.5 0.3 -0.2 - 0.1 -3.3 -3.1 0.2 0.1 - -0.7 -3.5
-123.5 -3.1 -1.1 - - -127.7 -113.2 -10.5 0.2 - - -123.5
-97.2 -16.5 1.6 - -0.1 -112.2 -96.2 -6.9 7.3 - -1.4 -97.2
-7.8 - - - 0.8 -7.0 -10.8 - - - 3.0 -7.8
139.6 43.8 0.5 1.2 -6.1 179.0 202.1 -46.8 -1.8 -2.0 -11.9 139.6
17.8% 16.9% 21.6% 17.8%

5.2 Inventories

Composition and drivers

The Nilfisk Group manufactures products and operates in different markets. The Group's operating model, with several assembly locations and a number of distribution hubs for finished products, leads to a relatively high level of inventory.

The Nilfisk Group's entities carry inventory to support their operations. Inventory days increased from 147 to 176 by the end of December 2024.

Specification of inventories

EUR million 2024 2023
Raw materials, consumables, and goods for resale 65.7 61.6
Work in progress 0.4 0.8
Finished goods 167.0 138.1
Total 233.1 200.5

Movements in inventory write-down

EUR million 2024 2023
Write-down on inventories, January 1 11.6 10.1
Exchange rate adjustments 0.1 -0.2
Write-down on inventories for the year 2.5 3.6
Reversal/disposal of write-downs -1.5 -1.9
Write-down on inventories, December 31 12.7 11.6

Accounting policy

Inventories are measured at cost in accordance with the FIFO method. If the net realizable value is lower than cost, inventories are written down to this lower value.

Raw materials, consumables, and goods for resale are measured at cost, comprised of purchase price plus delivery costs.

Finished goods and work in progress are measured at cost, which includes the costs of raw materials, consumables, direct wages/salaries, and production overheads. Production overheads include indirect materials and wages/salaries, as well as maintenance and depreciation of production machinery, buildings, and equipment, along with costs for production administration and management.

The net realizable value of inventories is calculated as the sales amount less costs of completion and costs incurred in effecting the sale, and is determined taking into account marketability, obsolescence, and development in expected sales price.

5.3 Trade receivables

Trade receivables increased by 17.4 mEUR amounting to 156.1 mEUR. The outstanding balances are being monitored closely with a continued focus on collecting receivables. The days sales outstanding was 50.6 and increased compared to the same period last year (2023: 44.4).

At December 31, 2024, non-recourse factoring amounted to 31.8 mEUR (2023: 33.7 mEUR).

Specification of trade receivables

EUR million 2024 2023
Trade receivables, gross incl. VAT 161.2 145.8
Allowance for expected credit losses -5.1 -7.1
Total 156.1 138.7

Movements in allowance for expected credit losses

EUR million 2024 2023
Allowance, January 1 7.1 6.9
Exchange rate adjustments 0.2 -0.1
Allowance losses recognized 0.8 1.2
Reversal of allowance losses -2.4 -0.6
Realized allowance losses -0.6 -0.3
Allowance, December 31 5.1 7.1

The following table details the risk profile of trade receivables based on the Group's provision matrix. The Group's historical credit losses do not show different patterns for different customer segments.

Specification of expected credit losses

2024 2023
EUR million Trade
receivables		 Lifetime expected
credit losses		 Expected
weighted average
credit loss rate		 Trade
receivables		 Lifetime expected
credit losses		 Expected
weighted average
credit loss rate
Not past due 118.3 0.2 0.1% 103.0 0.1 0.1%
Overdue < 1 months 19.5 0.1 0.5% 22.1 0.1 0.5%
Overdue 1-2 months 6.9 0.1 2.4% 5.4 0.1 2.3%
Overdue 2-4 months 6.2 0.6 10.4% 4.5 0.4 10.1%
Overdue 4-12 months 5.5 1.0 20.0% 5.7 2.1 42.1%
Overdue > 12 months 4.8 3.1 73.0% 5.1 4.3 98.5%
Total 161.2 5.1 145.8 7.1

Accounting policy

Receivables are recognized initially at their transaction price and subsequently measured at amortized cost, which usually corresponds to the nominal value less lifetime expected credit losses. The expected credit losses on trade receivables are estimated using a provision matrix with reference to past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for general economic conditions of the market in which the debtor operates. The Group recognizes a loss allowance for expected credit losses and writes off trade receivables when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery.

The amount of write-downs is recognized in the income statement under other operating expenses. Subsequent recoveries of amounts previously written down are credited against other operating expenses.

In certain markets, the Group has entered into factoring agreements on a non-recourse basis, which involves selling trade receivables to a factor. Trade receivables subject to factoring agreements are derecognized once the criteria for derecognition have been met and all substantial risk and rewards transferred.

Prepaid expenses are measured at cost.

Section 6 Capital structure

This section covers the Nilfisk Group's capital structure and financial risks.

The Group's objective is to have capital resources to meet operating needs as well as capital for potential acquisitions. To achieve and maintain an efficient capital structure, the Group's financial gearing target is set to ensure that the net interestbearing debt should be between 1.5 – 2.0x EBITDA before special items.

Total committed credit facilities available to Nilfisk are 425 mEUR (2023: 400 mEUR) split between a Revolving Credit Facility (RCF) of 200 mEUR and a newly established Schuldschein loan (SSD) of 225 mEUR. The RCF is provided by a bank consortium consisting of BNP Paribas, Danske Bank A/S, HSBC Continental Europe, Nordea Danmark, a branch of Nordea Bank Abp, Finland, and Unicredit Bank Austria AG. It is linked to Nilfisk's sustainability targets towards 2030 and includes a financial covenant with reference to the ratio between net interest-bearing debt and EBITDA. It is not expected that non-current liabilities with financial covenants will become repayable within the next twelve months. The SSD is a debt capital market product and provides Nilfisk with diversity in debt maturity (3, 5, and 7 years), plus a higher grade of financing flexibility for future investment opportunities when they arise. The SSD includes a step-up coupon if the ratio between net interest-bearing debt and EBITDA exceeds a given level.

The facilities are available for general funding purposes.

Key developments in 2024

Net interest-bearing debt at December 31, 2024 was 270.1 mEUR and hence increased by 17.9 mEUR compared to December 31, 2023, mainly from investments in working capital, partly offset by cash generation from operating profit. As of December 31, 2024 the net interest-bearing debt primarily consisted of short- and long-term credit facilities, cash, and cash equivalents. The interest-bearing debt was denominated primarily in EUR. The financial gearing at the end of the year was 2.0x, corresponding to an increase of 0.1x from 2023.

Net interest-bearing debt and financial gearing

169 NILFISK ANNUAL REPORT 2024

6.1 Net interest-bearing debt

Specification of net interest-bearing debt 2024 2023
EUR million Non-cash changes Non-cash changes
January 1 Cash flows Foreign exchange and
other movements		 Leases December 31 January 1 Cash flows Foreign exchange and
other movements		 Leases December 31
Non-current interest-bearing loans and borrowings 205.9 27.4 -4.2 - 229.1 288.2 -85.1 2.8 - 205.9
Non-current lease liabilities 44.7 - 0.3 -6.4 38.6 36.9 - 4.8 3.0 44.7
Current interest-bearing loans and borrowings 2.1 -2.0 5.4 - 5.5 1.7 1.7 -1.3 - 2.1
Current lease liabilities 24.6 -28.6 0.1 30.3 26.4 23.0 -26.4 -5.9 33.9 24.6
Interest-bearing liabilities 277.3 -3.2 1.6 23.9 299.6 349.8 -109.8 0.4 36.9 277.3
Current interest-bearing receivables -0.5 - 0.2 - -0.3 -0.4 - -0.1 - -0.5
Interest-bearing receivables -0.5 - 0.2 - -0.3 -0.4 - -0.1 - -0.5
Net liabilities from financing activities 276.8 -3.2 1.8 23.9 299.3 349.4 -109.8 0.3 36.9 276.8
Non-current interest-bearing receivables -1.3 - -0.5 - -1.8 -2.0 - 0.7 - -1.3
Non-current interest-bearing receivables -1.3 - -0.5 - -1.8 -2.0 - 0.7 - -1.3
Net liabilities from investing activities -1.3 - -0.5 - -1.8 -2.0 - 0.7 - -1.3
Cash and cash equivalents 23.3 4.5 -0.4 - 27.4 22.7 5.4 -4.8 - 23.3
Net interest-bearing debt 252.2 -7.7 1.7 23.9 270.1 324.7 -115.2 5.8 36.9 252.2

Accounting policy

Payables to credit institutions, etc. are initially recognized at the amount of proceeds received at the date of borrowing, net of transaction costs paid. In subsequent periods the financial liabilities are measured at amortized costs using 'the effective interest method', the difference between the proceeds and the nominal value therefore being recognized in the income statement under financial expenses over the term of the loan.

The carrying amount of payables to credit institutions and other payables corresponds in all material respects to fair value and nominal value.

Income statement and statement of comprehensive income Statement of financial position Cash flow statement Statement of changes in equity Notes Part of the management review

6.2 Investments in associates

Associated companies comprise M2H, CFM Lombardia and Thoro.

The primary activity of M2H is the sale of industrial equipment and associated services to cleaning companies.

The primary activity of CFM Lombardia is the design and sale of industrial vacuum cleaners for dusts, solids and liquids in Italy. CFM Lombardia is a distributor for Nilfisk Italy, and was created to promote Nilfisk IVS products in the north of Italy.

Thoro is a joint venture with Carnegie Robotics LLC established in 2020. The primary activity of Thoro Inc. is the development and sale of autonomous technology software and services.

Carrying amount of associated companies

EUR million 2024 2023
Carrying amount, January 1 34.9 33.2
Exchange rate adjustments 0.7 -0.2
Share of profit recognized in the income statement 4.0 0.8
Additions - 2.6
Dividends -2.0 -1.5
Carrying amount, December 31 37.6 34.9
Details of associated companies 2024 2023
CFM CFM
M2H Lombardia Thoro Total M2H Lombardia Thoro Total
EUR million France Italy US France Italy US
Revenue 89.7 2.2 0.9 92.8 85.2 2.5 1.0 88.7
Profit (loss) after tax 9.8 0.1 -2.4 7.5 7.7 0.1 -7.5 0.3
Non-current assets 14.8 0.2 8.8 23.8 16.2 0.2 10.6 27.0
Current assets 78.9 1.3 - 80.2 73.6 1.5 - 75.1
Total assets 93.7 1.5 8.8 104.0 89.8 1.7 10.6 102.1
Equity 68.8 0.5 8.8 78.1 62.2 0.5 10.6 73.3
Non-current liabilities 14.4 0.2 - 14.6 17.1 0.2 - 17.3
Current liabilities 10.5 0.8 - 11.3 10.5 1.0 - 11.5
Equity and liabilities 93.7 1.5 8.8 104.0 89.8 1.7 10.6 102.1
Ownership in % 49% 33% 32% 49% 33% 32%
Share of profit after tax 4.8 - -0.8 4.0 3.7 - -2.9 0.8
Share of equity 33.7 0.2 2.8 36.7 30.5 0.1 3.4 34.0
Goodwill recognized 0.9 - - 0.9 0.9 - - 0.9
Carrying amount 34.6 0.2 2.8 37.6 31.4 0.1 3.4 34.9
Goods sold to associated companies 21.6 0.9 - 22.5 20.4 0.9 - 21.3
Goods purchased from associated companies - - 0.5 0.5 - - 0.4 0.4
Dividends received from associated companies 2.0 - - 2.0 1.5 - - 1.5
Receivables from associated companies 0.5 0.5 - 1.0 0.8 0.5 - 1.3

An associated company is an entity in which the Nilfisk Group has significant influence, but not control, which in general will be when holding 20% to 50% of the voting rights. Such investments are accounted for using the equity method of accounting. The investment is adjusted by the Nilfisk Group's share of the

results after tax of the associated company. The Nilfisk Group's share of the results is recognized in a separate line in the income statement. The share of results will be recognized based on the associated company's full-year outlook, with adjustment for the actual full-year result in the following year.

6.3 Financial risks and financial instruments

Risk management policy

The Nilfisk Group is exposed to and manages financial risk through its operations, investments, and financing activities. As a matter of policy, the Nilfisk Group does not actively speculate in financial risks.

The overall objectives and policies for the Nilfisk Group's financial risk management are outlined in an internal Treasury Policy, which is approved by the Board of Directors. The general principle is that only financial risk exceeding a defined risk threshold is hedged. The risk thresholds are defined to provide the Nilfisk Group with sufficient risk protection while taking hedging costs into consideration.

The Nilfisk Group uses financial instruments to hedge exposures relating to currency, interest rate, and remuneration risks.

The financial risks are divided into:

  • Interest rate risks
  • Remuneration risks
  • Credit risks
  • Liquidity risks
  • Currency risks

Interest rate risks

Interest rate risks refer to the influence of changes in market interest rates on future cash flows concerning the Nilfisk Group's net interest-bearing debt.

Nilfisk Group has entered into interest rate cap and collar agreements and is hedging 50% of gross debt at December 31, 2024 compared to 54% in 2023.

The table to the right shows the carrying amount of interest caps and collars at December 31 for the Nilfisk Group which are used for and fulfill the conditions for hedge accounting.

Interest caps and collars

Effective date Maturity date Notional value
(mEUR)		 Cap floor Cap strike Carrying
amount
(mEUR)
2024
July 30, 2024 July 30, 2026 150 - 4.00% p.a. -0.8
July 30, 2026 July 30, 2029 110 1.51% p.a. 3.00% p.a. 0.1
Total -0.7

2023

Total -0.8
June 30, 2023 June 30, 2026 75 - 4.00% p.a. -0.4
June 30, 2023 June 30, 2026 75 - 4.00% p.a. -0.4

Sensitivity

The table below shows the sensitivity of profit before tax and other comprehensive income to changes in the market interest rate for Nilfisk's Group's interest-bearing liabilities.

EUR million Change
recognized
in OCI		 Change
recognized
in P&L
1%-point decrease -1.8 2.7
2%-points decrease -4.1 5.4
3%-points decrease -6.8 7.4
1%-point increase 1.5 -2.7
2%-points increase 4.0 -4.3
3%-points increase 7.8 -5.5

Remuneration risks

Nilfisk has an exposure on its share-based incentive schemes (LTI programs) – equity-settled performance share programs. The exposure is the development in the price of the Nilfisk share that impacts the liquidity required to settle the equitysettled schemes by own shares.

To mitigate the risk, Nilfisk has entered into a Total Return Swap (TRS). For 2024, the interest expense amounted to 0.0 mEUR, compared to 0.0 mEUR in 2023. Nilfisk is obligated to exercise all shares within the TRS at the date of expiration.

Total Return Swap

Shares Maturity date Strike
price
(DKK)		 Notional
value
(mDKK)		 Interest
rate		 Carrying
amount
(mEUR)
2024
144,580 February 24, 2025 105.60 15.3 5.70% -
Total -
2023
167,804 January 15, 2024 109.00 18.3 6.65% 0.2
Total 0.2

6.3 Financial risks and financial instruments – continued

Credit risks

The Nilfisk Group's credit risks relate partly to receivables and cash and cash equivalents, and partly to derivative financial instruments with positive fair values. The maximum credit risk attached to financial assets corresponds to the values recognized in the statement of financial position.

The Nilfisk Group has no material risks relating to a single customer or partner. The Nilfisk Group's policy for acceptance of credit risks entails ongoing credit rating of important customers and other partners.

Nilfisk has chosen to sell some of its trade receivables in selected European markets in non-recourse factoring agreements to expedite cash collection from groups of customers. Nilfisk does not carry any credit risk on these customers.

Insurance cover and similar measures to hedge receivables are rarely applied as this is not deemed necessary.

Liquidity risks

It is the Nilfisk Group's policy to maintain adequate cash resources for implementing planned operating activities and to be able to operate effectively in the event of unforeseen fluctuations in liquidity. The Nilfisk Group's cash resources consist of cash, cash equivalents, and undrawn credit facilities.

Liabilities due within one year do not include interest. The forward contracts are recognized at fair value and the discount element is considered insignificant due to short maturity.

Payables to credit institutions are consequently recognized in the statement of financial position at the amounts stated in the following table.

Maturity of the Nilfisk Group's liabilities

EUR million Within 1 year 1-2 years 2-3 years 3-4 years 4-5 years > 5 years Total
2024
Forward contracts 4.2 - - - - - 4.2
Other hedging instruments - 0.8 - - -0.1 - 0.7
Interest-bearing loans and borrowings 5.5 0.4 44.1 0.3 144.2 40.1 234.6
Lease liabilities 26.4 17.7 11.4 2.8 1.2 5.5 65.0
Trade payables 127.7 - - - - - 127.7
Other financial liabilities 108.0 1.4 0.7 0.3 0.2 - 110.6
Total 271.8 20.3 56.2 3.4 145.5 45.6 542.8
2023
Forward contracts 3.5 - - - - - 3.5
Other hedging instruments - - 0.8 - - - 0.8
Interest-bearing loans and borrowings 2.1 199.4 1.1 0.4 0.3 4.7 208.0
Lease liabilities 24.6 19.8 12.5 4.4 1.2 6.8 69.3
Trade payables 123.5 - - - - - 123.5
Other financial liabilities 93.7 1.6 0.7 0.3 0.1 - 96.4
Total 247.4 220.8 15.1 5.1 1.6 11.5 501.5

6.3 Financial risks and financial instruments – continued

Currency risks

With sales to more than 100 countries, the Nilfisk Group is exposed to currency risks that could have considerable impact on the income statement and statement of financial position.

Currency risks refer to the risks of losses (or opportunities for gains) resulting from changes in currency rates. Currency risks arise through transactions, financial assets, and liabilities denominated in currencies other than the functional currency of the individual Group businesses.

Translation risks relating to net investments in subsidiaries

As a basic principle, the hedging of currency risks is not performed for net assets (equity) in foreign subsidiaries. Gains and losses relating to unhedged net assets in foreign subsidiaries are accounted for directly in other comprehensive income. Currency risks relating to other investments in foreign entities are not deemed significant.

Sensitivity

The table below shows the sensitivity of the Nilfisk Group's equity, if the exchange rate decreased by 10% for the most significant currencies, excluding EUR/DKK.

EUR million 2024 2023
USD -10.3 -13.9
CNY -3.6 -4.2
GBP -2.4 -2.1

Net financing

Significant currency risks relating to receivables and payables that influence the Nilfisk Group's net income are hedged. Balances with credit institutions are denominated in the functional currency of the businesses concerned.

Future cash flows

The Nilfisk Group's principal currency exposure relates to sales and purchases in currencies other than the functional currency of the individual Nilfisk Group businesses. Hedging of these currency risks is based on assessments of the likelihood of the future transaction being performed and whether the associated currency risk is significant.

Expected cash flows with significant currency risk can be hedged up to 18 months applying a rolling hedging ladder strategy. The fair value of the effective part of the hedge is recognized in other comprehensive income on a continuous basis.

The table to the right shows net outstanding forward exchange hedging contracts at December 31 for the Nilfisk Group which are used for and fulfill the conditions for hedge accounting of future transactions. Forward exchange contracts relate to hedging of product sales/purchase.

Outstanding FX hedging contracts

2024 2023
EUR million Notional
value¹		 Recognized
in OCI		 Notional
value¹		 Recognized
in OCI
AUD/DKK -7.0 0.1 -6.8 -0.1
CNH/DKK2 58.7 1.7 39.1 -0.7
GBP/DKK -22.7 -0.6 -17.1 -0.2
HUF/DKK 8.9 -0.2 9.1 0.4
NOK/DKK -7.7 0.1 -7.6 -0.2
PLN/DKK -9.3 -0.2 -9.3 -
SEK/DKK -10.2 - -8.7 -0.3
SGD/DKK - - -0.6 -
TRY/DKK -11.6 -1.4 -7.7 0.2
USD/DKK -15.9 -0.8 -17.2 -
CAD/USD -12.7 0.6 -13.6 -0.3
Total -29.5 -0.7 -40.4 -1.2

1 Forward exchange contracts with positive notional values are purchases of the relevant currency; negative notional values are sales.

2 The Chinese yuan traded offshore (CNH) is used as a proxy when hedging the CNY currency exposure for the Group.

6.3 Financial risks and financial instruments – continued

The following table details the foreign currency forward contracts outstanding at the end of the reporting period, as well as information regarding their related hedged items.

Foreign currency forward contract assets are presented as "Other receivables" in the statement of financial position and foreign currency forward contract liabilities are presented in "Other liabilities" in the statement of financial position.

During the year, no ineffectiveness on hedge contracts has been recognized, and the change in value used for the calculated ineffectiveness is therefore equal to the carrying amount.

Cash flow hedges 2024 2023
Average
exchange rate		 Notional value:
Foreign currency		 Notional value:
Local currency		 Carrying amount of
cash flow hedges, net		 Average
exchange rate		 Notional value:
Foreign currency		 Notional value:
Local currency		 Carrying amount
of hedges, net
(tFCY) (tLCY) EUR thousand (tFCY) (tLCY) EUR thousand
0-6 months 4.5485 AUD/DKK -8,018 AUD -36,470 DKK 76.2 4.5717 AUD/DKK -6,886 AUD -31,479 DKK -45.5
Sell AUD 7-12 months 4.5735 AUD/DKK -3,685 AUD -16,853 DKK 40.4 4.5089 AUD/DKK -4,115 AUD -18,554 DKK -61.9
0-6 months 0.9550 CNH/DKK 255,535 CNH 244,026 DKK 968.0 0.9785 CNH/DKK 192,397 CNH 188,265 DKK -713.6
Buy CNH 7-12 months 0.9606 CNH/DKK 189,930 CNH 182,445 DKK 751.8 0.9521 CNH/DKK 114,800 CNH 109,303 DKK 17.1
0-6 months 8.8021 GBP/DKK -11,690 GBP -102,897 DKK -446.6 8.5738 GBP/DKK -9,011 GBP -77,254 DKK -148.2
Sell GBP 7-12 months 8.9069 GBP/DKK -7,160 GBP -63,773 DKK -152.7 8.6298 GBP/DKK -5,893 GBP -50,855 DKK -37.3
0-6 months 0.0189 HUF/DKK 2,054,750 HUF 38,857 DKK -141.4 0.0195 HUF/DKK 1,988,180 HUF 38,856 DKK 358.5
Sell HUF 7-12 months 0.0186 HUF/DKK 1,599,370 HUF 29,810 DKK -89.0 0.0196 HUF/DKK 1,486,600 HUF 29,201 DKK 24.9
0-6 months 0.6501 NOK/DKK -49,770 NOK -32,355 DKK 86.7 0.6532 NOK/DKK -51,848 NOK -33,868 DKK -94.9
Sell NOK 7-12 months 0.6350 NOK/DKK -40,910 NOK -25,979 DKK 0.1 0.6498 NOK/DKK -33,532 NOK -21,790 DKK -79.3
Sell PLN 0-6 months 1.7281 PLN/DKK -23,030 PLN -39,799 DKK -151.8 1.7210 PLN/DKK -21,200 PLN -36,485 DKK -3.6
7-12 months 1.7370 PLN/DKK -16,800 PLN -29,182 DKK -59.9 1.7207 PLN/DKK -19,200 PLN -33,037 DKK -21.6
0-6 months 0.6566 SEK/DKK -73,928 SEK -48,540 DKK 32.9 0.6509 SEK/DKK -58,937 SEK -38,360 DKK -189.3
Sell SEK 7-12 months 0.6499 SEK/DKK -43,360 SEK -28,178 DKK -15.2 0.6480 SEK/DKK -37,300 SEK -24,170 DKK -139.6
0-6 months - SGD/DKK - - - 5.2613 SGD/DKK -848 SGD -4,459 DKK 4.7
Sell SGD 7-12 months - SGD/DKK - - - - SGD/DKK - - -
0-6 months 0.2101 TRY/DKK -240,000 TRY -50,420 DKK -999.5 0.2807 TRY/DKK -118,004 TRY -33,119 DKK 136.9
Sell TRY 7-12 months 0.2018 TRY/DKK -185,000 TRY -37,336 DKK -403.3 0.2405 TRY/DKK -135,000 TRY -32,468 DKK 15.6
0-6 months 6.9413 USD/DKK -9,483 USD -65,824 DKK -416.7 6.8332 USD/DKK -11,536 USD -78,827 DKK -10.7
Sell USD 7-12 months 6.8743 USD/DKK -7,080 USD -48,670 DKK -324.9 6.8262 USD/DKK -7,447 USD -50,835 DKK 16.8
0-6 months 0.7285 CAD/USD -11,420 CAD -8,319 USD 376.7 0.7362 CAD/USD -11,377 CAD -8,376 USD -166.0
Sell CAD 7-12 months 0.7207 CAD/USD -7,580 CAD -5,463 USD 187.1 0.7413 CAD/USD -8,480 CAD -6,286 USD -99.7
Total -681.1 -1,236.7

6.3 Financial risks and financial instruments – continued

The following table details the effectiveness of the hedging relationships and value adjustments reclassified from the hedging reserve to the income statement.

Hedging reserve

2024 2023
EUR million Currency risk Interest rate risk Total Currency risk Interest rate risk Total
Hedging reserve, January 1 -1.0 -0.5 -1.5 1.0 8.3 9.3
Value adjustment for the year -1.4 -0.1 -1.5 -1.2 -1.8 -3.0
Value adjustment reclassified to cost of sales 1.2 - 1.2 -0.7 - -0.7
Value adjustment reclassified to financial income and expenses - - - - -9.6 -9.6
Value adjustment reclassified to inventory 0.8 - 0.8 -0.6 - -0.6
Tax on value adjustment of hedging instruments -0.1 - -0.1 0.5 2.6 3.1
Hedging reserve, December 31 -0.5 -0.6 -1.1 -1.0 -0.5 -1.5

Sensitivity

The sensitivity analysis demonstrates currency rate changes equal to the individual currency's historic volatility, with all other variables held constant. The impact on the income statement is due to changes in the fair value of monetary assets and liabilities including fair value hedges. The impact on other comprehensive income is due to changes in the fair value of forward exchange contracts designated as cash flow hedges. The Group's exposure to foreign currency changes for all other currencies is not material. The analysis shows that for instance a 6% increase in the CNH/DKK rate will impact other comprehensive income by 3.6 mEUR.

2024 2023
EUR million Historic
volatility		 Change
recognized
in OCI		 Change
recognized
in P&L		 Historic
volatility		 Change
recognized
in OCI		 Change
recognized
in P&L
AUD/DKK 8% -0.6 0.1 7% -0.5 -
CNH/DKK 6% 3.6 -0.9 7% 2.7 -0.2
GBP/DKK 5% -1.2 - 6% -1.0 -0.1
HUF/DKK 7% 0.6 -0.1 10% 0.9 -0.1
NOK/DKK 8% -0.6 - 10% -0.8 -0.1
PLN/DKK 6% -0.5 -0.1 7% -0.6 0.1
SEK/DKK 6% -0.6 - 8% -0.7 -0.2
SGD/DKK 5% - -0.1 5% - -0.1
TRY/DKK 22% -2.5 0.1 28% -2.1 -
USD/DKK 8% -1.2 4.6 7% -1.3 0.4
CAD/USD 5% -0.1 0.2 6% -0.9 -

Financial assets and liabilities by category

6.3 Financial risks and financial instruments – continued

Fair values

Financial instruments measured at fair value in the statement of financial position are designated as belonging to one of the following three categories (the 'fair value hierarchy'):

  • Level 1: Listed prices (unadjusted) in active markets for identical assets and liabilities
  • Level 2: Input, other than listed prices on Level 1, which is observable for the asset or liability either directly (as prices) or indirectly (derived from prices)
  • Level 3: Input for the asset or liability which is not based on observable market data (non-observable input)

Financial instruments measured at fair value consist of derivative financial instruments. The fair value of the Nilfisk Group's forward transactions is measured in accordance with Level 2 as the fair value is based on official exchange rates and forward rates at the balance sheet date. The fair value of the TRS is measured in accordance with Level 2 as the fair value is based on inputs of which most are observable including the share price of Nilfisk. There are no financial instruments measured at Level 1 and 3.

2024 2023
156.1 138.7
0.3 0.5
33.9 26.8
190.3 166.0
1.2
3.0 1.2
0.9
0.9
194.1 168.1
234.6 208.0
127.7 123.5
65.0 69.3
110.6 96.4
537.9 497.2
3.0
4.4 3.0
1.3
1.3
542.8 501.5
-1.1 -2.2
3.0
0.8
0.8
4.4
0.5
0.5

Accounting policy

Derivative financial instruments

Derivative financial instruments are recognized from the trade date and measured in the statement of financial position at fair value. Positive and negative fair values of derivative financial instruments are included in other receivables and liabilities, respectively. Fair values of derivative financial instruments are computed on the basis of current market data and generally accepted valuation methods.

Fair value hedges

Changes in the effective portion of the fair value of derivative financial instruments designated and qualifying as a fair value hedge of a recognized asset or a recognized liability are recognized in the income statement together with changes in the value of the hedged asset or hedged liability.

Apart from foreign currency hedging, hedge of future cash flows according to a firm commitment is treated as a fair value hedge.

The ineffective portion of the change in the fair value of a derivative financial instrument is presented under financial items.

Cash flow hedges

Changes in the effective portion of the fair value of derivative financial instruments designated and qualifying as hedges of future cash flows are recognized in other comprehensive income and accumulated in a separate hedging reserve under equity until the hedged item influences the income statement. Gains or losses relating to such hedging transactions are then transferred through other comprehensive income and recognized in the income statement in the same item as the hedged item. However, when the

6.3 Financial risks and financial instruments – continued

hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously recognized in other comprehensive income and accumulated in equity are removed from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability. This transfer does not affect other comprehensive income.

If the hedging instrument no longer meets the criteria for hedge accounting, the hedging relationship is discontinued prospectively. The accumulated reserve in equity remains in equity if it is still probable that the hedged cash flows will occur and is transferred through other comprehensive income to the income statement when the hedged cash flows influence the income statement.

If the hedged cash flows are no longer expected to be realized, the accumulated reserve in equity is immediately transferred to the income statement.

The ineffective portion of the change in the fair value of a derivative financial instrument is recognized immediately in the income statement and presented under financial items.

LTI program hedges

Hedge accounting cannot be applied on equity-based programs as fluctuations in the price of the Nilfisk share do not affect the income statement. Thus, changes in the fair value of derivative financial instruments hedging the liquidity risk related to the settlement of equity-settled programs are recognized in the income statement under financial items.

Other derivative financial instruments

Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognized under financial items as they arise.

6.4 Share capital

The total number of shares is 27,126,369 with a nominal value of 20 DKK each. The share capital is unchanged from 2023. All shares have been fully paid up and no shares carry special rights. The Nilfisk Holding A/S Articles of Association specifies no limits in respect of ownership or voting rights, and the Executive Management Board is unaware of any agreements in this regard.

Outstanding shares

Shares 2024 2023
Number of shares at January 1 27,126,369 27,126,369
Total number of shares at December 31 27,126,369 27,126,369
Shares 2024 2023
Weighted average number of shares 27,126,369 27,126,369
Dilutive effect of outstanding shares (average) - -
Diluted weighted average number of shares 27,126,369 27,126,369

Accounting policy

Dividends are recognized as a liability at the date of adoption at the Annual General Meeting (declaration date). Proposed dividend payments for the year are disclosed as a separate item under equity.

Interim dividends are recognized as a liability at the date when the decision to pay such dividends is made.

Foreign exchange reserve

The foreign exchange reserve includes exchange rate adjustments arising on

Earnings per share

EUR million 2024 2023
Profit for the year used for calculation of earnings per share 35.4 35.3
Dilutive effect of profit for the year - -
Profit for the year used for the calculation
of diluted earnings per share		 35.4 35.3
EUR 2024 2023
Basic earnings per share 1.31 1.30
Diluted earnings per share 1.31 1.30

Dividends

At the Annual General Meeting to be held on March 19, 2025, the Board of Directors will propose not to distribute dividends for the financial year of 2024 (2023: 0.0 mEUR).

translation of the financial statements of foreign entities with a currency that is not the Group's functional currency.

Hedging reserve

Hedging reserve covers:

  • cash flow hedging of interest payments
  • hedging of currency risk of cash flows
  • hedging of LTI program

Section 7 Cash flow

This section contains notes related to cash flow

Key developments in 2024

In 2024, Nilfisk focused on prioritizing its strategic agenda for sustainable growth through innovative product launches. Stock of new products built up during 2024 resulting in a cash outflow of 43.8 mEUR, compared to an inflow of 46.8 mEUR in 2023.

Overall, total cash flow from operating activities decreased by 91.1 mEUR and came to 51.9 mEUR at the end of 2024.

As per the strategic direction Nilfisk continued to invest into a new product generation and the upgrade of the current portfolio, alongside the roll out of SAP. Hence, investing activities amounted to a net cash outflow of 44.2 mEUR.

Free cash flow came to 7.7 mEUR. With cash outflow from financing activities amounting to 3.2 mEUR, the net cash flow for the period ended at 4.5 mEUR, bringing cash and cash equivalents at the end of 2024 to 27.4 mEUR.

7.1 Other non-cash adjustments

EUR million 2024 2023
Change in provisions -1.2 2.6
Other non-cash items 1.5 -3.6
Total 0.3 -1.0

Accounting policy

Cash flow from operating activities includes all cash transactions other than cash flows arising from investing and financing activities. Cash flow from operating activities is determined using the indirect method, whereby operating profit or loss is adjusted for non-cash items such as depreciations, amortization and impairment, provision, and capitalized borrowing cost. The actual payment of borrowing costs is included in cash flow from financing activities.

Cash flow from investing activities is comprised of the cash outflow related to investment in properly, plant and equipment, internal generated development and software projects, and lease payments related to right-of-use assets. Cash flow from financial assets is mainly linked to investment in associated companies with received dividends as cash inflow and new investments, increase of ownership in existing companies, or increase of loan facility as cash outflow.

Cash flow from financing activities is the net change in the long-term external financing including the use of credit facilities.

Foreign currency

Cash flows arising from transactions in a foreign currency has been recorded in the Group's functional currency by applying to the foreign currency amount the average exchange rate between the functional currency of the Group and the foreign currency at the date of the cash flow. The average exchange rate is an average of the previous month's end rate, including the end rate from December prior year.

Cash and cash equivalents

Cash is comprised of cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to a known amount of cash, and which are subject to an insignificant risk of change in value.

Section 8 Other notes

This note contains other statutory notes and notes considered less essential to the understanding of the Nilfisk Group's financial development.

8.1 Fees to auditors elected at the annual general meeting

EUR million 2024 2023
Deloitte:
Statutory audit 1.2 1.1
Tax and VAT services 0.1 -
Other assurance service 0.3 0.3
Other services 0.4 -
Total 2.0 1.4

In 2024, the fee for other services provided to the Group by Deloitte Statsautoriseret Revisionspartnerselskab Denmark amounted to 0.4 mEUR (2023: 0.0 mEUR), relating to advisory costs for strategic improvement projects and other assessments and opinions.

8.2 Related parties

The Nilfisk Group has had the following transactions and balances with related parties:

EUR million 2024 2023
Goods sold to associated companies 22.5 21.3
Goods purchased from associated companies 0.5 0.4
Dividends received from associated companies 2.0 1.5
Receivables from associated companies 1.0 1.3

Goods were sold to associates during the year based on the price lists in force and terms that would be available to third parties. Read more about remuneration to the Executive Management Board in note 3.2 and 3.3, and for investments in associates see note 6.2.

8.3 Contingent liabilities, securities, and contractual obligations

EUR million 2024 2023
Guarantees to support local bank facilities 11.2 10.9
Rental guarantees 7.6 7.2
Other guarantees 5.6 6.1
Total issued guarantees 24.4 24.2

Claims filed against Nilfisk

On October 15, 2022, Nilfisk's insurer filed a lawsuit in Denmark against Nilfisk with respect to the insurance payout for the destruction of the US Distribution Center in a tornado. The insurer's total claim stood at 19 mEUR at the end of 2024. The Court in the first instance has ruled in favor of Nilfisk. Subsequently, the insurer has appealed the first instance ruling. The Executive Management Board continues to see a degree of uncertainty related to the potential costs for this claim.

On September 15, 2022, a claim was filed against Nilfisk by the owner of the US Distribution Center building with respect to contractual obligations related to terminating the contract. The resulting costs may exceed the insurance coverage that has already been paid to the owner of the US Distribution Center building. The Court issued a summary judgment on February 22, 2024, and the bench trial was completed on February 26-28, 2024. On summary judgment the Court found that Nilfisk was in material breach of its contractual obligations. Nilfisk has received the Court's ruling on damages where the Court determines that Nilfisk should pay damages in the amount of 13.8 mEUR excluding post-judgment interest and lawyers' fees. Nilfisk disagrees with the Court's rulings, and has filed an appeal of both the summary judgment and the ruling now received on damages. Nilfisk will also file for a stay of execution of the

Court's ruling on damages in due course. The appeal is further supported by external legal assessment of merit. Based on additional legal fees and external legal assessment, Nilfisk has provided for this dispute based on Executive Management Board's best estimate. The dispute with the owner of the US Distribution Center building is considered special items and will not affect Nilfisk's operating results. The Executive Management Board continues to see a degree of uncertainty related to potential costs for this claim. Depending on the final outcome an adverse decision may impact special items.

Other contingent liabilities

The Nilfisk Group is engaged in certain other disputes, legal proceedings, and inquiries from authorities, including tax authorities, the outcome of which is not expected to materially impact the Group's financial position.

Accounting policy

Contingent assets and liabilities

Disclosure concerning contingent assets and liabilities and when they must be recognized takes place against the background of evaluations of the expected outcome of the individual issues. These evaluations are based on legal opinions of the agreements contracted, which in significant issues also include opinions obtained from external advisors, including lawyers.

Assets are recognized when it is virtually certain that the issue will have a positive outcome for the company. A liability is recognized when it is likely that, at the balance sheet date, there will be an outflow from the Nilfisk Group's financial resources and when the liability can be reliably stated. If this is not the case, the matter is disclosed in the notes to the financial statements. Decisions relating to such situations may in future accounting periods lead to realized gains or losses that may differ significantly from the recognized amounts or disclosures.

8.4 Events after the balance sheet date

Other than as set out above, we are not aware of events subsequent to December 31, 2024 that materially affect the assessment of the consolidated financial statements.

8.5 Group companies

EMEA

Denmark
Nilfisk Holding A/S Denmark
Nilfisk A/S Denmark
Nippon Investment Corporation ApS Denmark
Rest of EMEA
Nilfisk GmbH Austria
Nilfisk N.V./S.A. Belgium
Nilfisk s.r.o. Czech Rep.
Nilfisk Oy Finland
Nilfisk S.A.S. France
Nilfisk-Advance Eppingen GmbH (under liquidation) Germany
Nilfisk GmbH Germany
Nilfisk Hellas Single Member S.A. Greece
Nilfisk Production Kft. Hungary
Nilfisk Commercial Kft. Hungary
Nilfisk Ltd. Ireland
Nilfisk S.p.A. Italy
Nilfisk B.V. Netherlands
Nilfisk AS Norway
Nilfisk Polska Sp.z.o.o. Poland
Nilfisk Lda. Portugal
Nilfisk-Advance S.R.L. Romania
Rest of EMEA (continued)
Nilfisk s.r.o.		 Slovakia
Nilfisk SA. Spain
Nilfisk AB Sweden
Nilfisk AG Switzerland
Nilfisk Profesyonel Temizlik Ekipmanlari Ticaret A.S. Türkiye
Nilfisk Trading LLC UAE
Nilfisk Ltd. United Kingdom
Floor Cleaning Machines Ltd. United Kingdom
Industrial Cleaning Machines Ltd. United Kingdom
Americas
Nilfisk S.R.L.		 Argentina
Nilfisk Equipamentos de Limpeza Ltda. Brazil
Nilfisk Canada Company Canada
Nilfisk Chile S.p.A. Chile
Nilfisk de Mexico S. de R.L. de C.V. Mexico
Nilfisk de Mexico Manufacturing S. de R.L. de C.V. Mexico
Nilfisk S.A.C. Peru
Nilfisk U.S Holding Inc. US
Nilfisk Inc. US
Nilfisk Robotics, Inc. US

Hathaway North America Inc. US Nilfisk Pressure-Pro, LLC. US

APAC

Nilfisk Pty. Ltd. Australia
(Dongguan) Viper Cleaning Equipment Co. Ltd. China
Nilfisk Cleaning Equipment (Shanghai) Co. Ltd China
Suzhou Nilfisk Research and Development Co. Ltd. China
Nilfisk Ltd. Hong Kong
Nilfisk India Private Ltd. India
Nilfisk Inc. Japan
Nilfisk Korea Co. Ltd. Korea
Nilfisk Sdn Bhd Malaysia
Nilfisk Limited New Zealand
Nilfisk Pte. Ltd. Singapore
Nilfisk Ltd. (Branch) Taiwan
Nilfisk Co. Ltd. Thailand
Nilfisk Company Ltd. Vietnam
Nilfisk Ltd. (Branch) Macau

Associates

M2H S.A. (49%) France
CFM Lombardia S.r.l. (33%) Italy
Thoro LLC. (32%) US

Ownership below 100% is disclosed in brackets.

Financial definitions

(Part of the management review - not audited)

Item Key figures and ratios Definition
1 Cash conversion Cash flow from operations before financial items and income taxes as a percentage of EBITDA
2 Capital employed Non-current assets less interest-bearing receivables, provisions, pensions, and deferred tax liabilities and working capital
3 CAPEX Capital expenditure (investments in property, plant, and equipment, and intangible assets)
4 CAPEX ratio CAPEX as a percentage of revenue
5 Days sales outstanding Accounts receivables (excluding VAT), minus bad debt provision, divided by latest three months' net sales accumulated up to twelve months, and multiplied by 365
6 Diluted earnings per share Profit (loss) attributable to shareholders of Nilfisk Holding A/S as a percentage of diluted average number of outstanding shares
7 EBITDA before special items Earnings (profit) before interest, tax, depreciation, amortization, impairment, and special items
8 EBITDA Earnings (profit) before interest, tax, depreciation, amortization, and impairment
9 EBITDA margin before special items EBITDA before special items as a percentage of revenue
10 EBITDA margin EBITDA as a percentage of revenue
11 EBIT before special items Earnings before interest, tax, and special items (operating profit before special items)
12 EBIT Earnings before interest and tax (operating profit)
13 EBIT margin before special items EBIT before special items as a percentage of revenue
14 EBIT margin EBIT as a percentage of revenue
15 Earnings per outstanding share (EPS) Profit (loss) attributable to shareholders of Nilfisk Holding A/S relative to average number of outstanding shares
16 Equity value per outstanding share Equity attributable to shareholders of Nilfisk Holding A/S per outstanding share at December 31
17 Financial gearing Net interest-bearing debt divided by EBITDA before special items LTM
18 Free cash flow Cash flow from operating activities less cash flow from investing activities
19 Free cash flow excluding acquisitions and divestments Free cash flow plus cash flow from acquisition of businesses and less cash flow from divestment of businesses
20 Full-time equivalent (FTE) Full-time equivalent is calculated as the number of total hours worked divided by the number of hours for a full-time worker
21 Gross margin Gross profit as a percentage of revenue
22 Inventory days Gross inventory divided by latest three months cost of sales excluding amortizations and service department costs accumulated up to twelve months and multiplied by 365
23 Investment ratio Additions as a percentage of depreciations/amortizations
24 LTM Latest twelve months
25 Net interest-bearing debt Current and non-current interest-bearing loans and borrowings less interest-bearing receivables and cash
26 OCI Other comprehensive income
27 Organic growth Organic growth in local currency excluding acquisitions and divestments and foreign exchange rates
28 Overhead cost ratio Overhead costs as a percentage of revenue
29 R&D ratio Research and development spend as a percentage of revenue
30 Return on capital employed (RoCE) EBIT before special items LTM as a percentage of average capital employed, calculated by taking the capital employed at December 31 and at the end of the preceding four quarters
31 Working capital Current assets minus current and non-current liabilities (excluding interest-bearing items and provisions)
32 Working capital ratio Average working capital LTM as a percentage of revenue

Non-IFRS financial measures

(Part of the management review - not audited)

Alternative performance measures

The Group assesses its performance using a variety of alternative performance measures which are not defined under IFRS. A reconciliation from these alternative performance measures to the nearest IFRS measure is presented below.

Organic growth

Organic growth is a measure that reflects the underlying performance of the Group. It excludes the impact of acquisitions or divestments and foreign exchange movements. Below is a reconciliation from the movement in reported revenue according to IFRS to organic growth.

Organic growth 1.2% -0.3%
Other - 0.2%
Foreign exchange 1.8% 2.9%
Revenue growth (according to income statement) -0.6% -3.4%
2024 2023

Overhead costs

Below is a breakdown of overhead costs, as presented in the income statement. Overhead costs consist of operating expenses, depreciations, amortizations, and impairment as well as other operating income and expenses.

EUR million 2024 2023
Research and development costs -28.7 -27.5
Sales and distribution costs -259.4 -251.7
Administrative costs -76.2 -74.6
Other operating income 2.0 4.7
Other operating expenses 0.3 -2.3
Total overhead costs -362.0 -351.4

EBITDA and EBITDA before special items

In addition to measuring financial performance of the Group based on operating profit, EBITDA and adjusted EBITDA figures are also used. We consider EBITDA to be a useful measure because it approximates the underlying performance by eliminating depreciations, amortizations, and impairment losses.

EUR million 2024 2023
Operating profit (EBIT) 65.5 61.2
Depreciation, amortization, and impairment 63.9 61.9
EBITDA 129.4 123.1
Special items (excl. depreciation and impairment) 6.4 9.3
EBITDA before special items 135.8 132.4

Parent company financial statements 2024

189 Accounting policies

Income statement

for the period January 1 to December 31

EUR million Note 2024 2023
Other income 1 2.7 3.0
Administrative costs 2, 3 -5.1 -5.2
Operating loss -2.4 -2.2
Financial expenses 4 -6.3 -4.0
Loss before income taxes -8.7 -6.2
Income taxes 5 2.6 -0.2
Loss for the year -6.1 -6.4
To be distributed as follows:
Loss attributable to shareholders of Nilfisk Holding A/S 6 -6.1 -6.4
Total -6.1 -6.4

Balance sheet

as of December 31

EUR million Note 2024 2023
Assets
Investments in subsidiaries 7 215.9 216.0
Deferred tax 5 2.9 1.4
Total non-current assets 218.8 217.4
Prepayments 8 - 0.3
Income tax receivable 0.8 0.3
Receivables from Group companies 9 4.1 3.8
Total current assets 4.9 4.4
Total assets 223.7 221.8
Equity and liabilities
Share capital 72.9 72.9
Retained earnings -1.2 4.7
Total equity 71.7 77.6
Interest-bearing loans and borrowings 54.5 42.6
Loans from Group companies 9 96.2 100.0
Total non-current liabilities 150.7 142.6
Trade payables and other liabilities 1.3 1.6
Total current liabilities 1.3 1.6
Total liabilities 152.0 144.2
Total equity and liabilities 223.7 221.8

Statement of changes in equity

for the years ended at December 31

EUR million Share capital Retained earnings Total equity
2024
Equity, January 1 72.9 4.7 77.6
Loss for the year - -6.1 -6.1
Share option program - 0.2 0.2
Total changes in equity - -5.9 -5.9
Equity, December 31 72.9 -1.2 71.7
2023
Equity, January 1 72.9 12.0 84.9
Loss for the year - -6.4 -6.4
Exchange rate adjustments - -0.2 -0.2
Share option program - -0.7 -0.7
Total changes in equity - -7.3 -7.3
Equity, December 31 72.9 4.7 77.6

The total number of shares is 27,126,369 with a nominal value of 20 DKK each. The share capital is unchanged from 2023. All shares have been fully paid up and no shares carry special rights. The Nilfisk Holding A/S Articles of Association specifies no limits with respect to ownership or voting rights, and the Executive Management Board is unaware of any agreements in this regard.

See Section 3 of the consolidated financial statements for a description of the share option programs to the Executive Management Board. Changes in equity in 2024 are comprised of a loss for the year, and changes to the share option program.

No dividends are proposed for 2024.

Note 1-5

Nilfisk Holding A/S is the parent company of the Nilfisk Group.

The parent company holds transactions related to holding of the subsidiaries, see the Management Review.

1. Other income

Other income is comprised of a management fee of 2.7 mEUR (2023: 3.0 mEUR) received by Nilfisk Holding A/S.

2. Administrative costs

EUR million 2024 2023
Wages and salaries 3.2 3.1
Bonus 0.1 0.5
Long-term incentive programs 0.2 -0.2
Total staff costs 3.5 3.4
Number of full-time employees, average 2 2
Number of full time employees, year-end 2 2
Remuneration to Board of Directors 0.7 0.7
Remuneration to the Executive Management Board 2.8 2.7
Other administrative costs¹ 1.6 1.8
Total administrative costs 5.1 5.2

¹ In addition to remuneration included in total staff costs, termination costs including salary during garden leave related to former members of the Executive Management Board were 0 mEUR in 2024 (2023: 0.3 mEUR).

The Executive Management Board are granted short-term bonus agreements contingent upon the fulfilment of the prerequisites, goals and conditions defined in a bonus agreement and long-term incentive programs. Refer to Section 3 Remuneration of the consolidated financial statements.

3. Fees to auditors elected at the annual general meeting

EUR million 2024 2023
Deloitte:
Statutory audit 0.2 0.2
Other assurance services 0.3 -
Total 0.5 0.2

4. Financial items

EUR million 2024 2023
Foreign exchange losses -0.1 -0.2
Interest to Group companies -6.2 -3.8
Total -6.3 -4.0

5. Tax

Tax recognized in the income statement

EUR million 2024 2023
Deferred tax -1.5 0.2
Adjustment, prior years -1.1 -
Total -2.6 0.2
Reported tax rate -29.8% -3.4%

Reconciliation of tax:

Calculated tax of 22.0% (2023: 22%) on loss before
income taxes -1.9 -1.4

Tax effect of:

Non-taxable income/non-deductible expenses 0.4 1.4
Adjustment, prior years -1.1 -
Tax assets valuation allowances - 0.2
Total -2.3 0.2

Deferred tax assets

EUR million 2024 2023
Deferred tax assets, January 1 1.4 1.6
Deferred tax recognized in the income statement 1.5 -0.2
Deferred tax assets, December 31 2.9 1.4

MR SS FS

Note 6-12

6. Proposed distribution of loss for the year

EUR million 2024 2023
Proposed distribution of loss for the year:
Loss attributable to shareholders of Nilfisk Holding A/S -6.1 -6.4
Total -6.1 -6.4

7. Investments in subsidiaries

EUR million 2024 2023
Carrying amount, January 1 216.0 216.5
Exchange rate adjustments -0.1 -0.5
Carrying amount, December 31 215.9 216.0

8. Prepayments

EUR million 2024 2023
Prepayments - 0.3
Total - 0.3

9. Related parties

Transactions with affiliated undertakings comprise the following:

EUR million 2024 2023
Non-current interest-bearing loan from Nilfisk A/S 96.2 100.0
Receivables from Group companies 4.1 3.8

Management fee of 2.7 mEUR is included in the 4.1 mEUR as a net receivable (2023: 3.8 mEUR).

Other matters of interest in relation to related parties are disclosed in Section 8 Other notes of the consolidated financial statements.

10. Major shareholders

The following shareholders holds an excess of 5% of the share capital as of December 31, 2024:

Number
of shares		 Share
capital
Ferd AS, Oslo, Norway 6,587,923 24.3%
KIRKBI INVEST A/S, Billund, Denmark 5,493,200 20.3%
PrimeStone Capital LLP, London, United Kingdom 1,675,034 6.2%
Danske Bank A/S, Copenhagen, Denmark 1,526,848 5.6%
Boldhaven Management LLP, London, United Kingdom 1,376,114 5.1%

11. Contingent liabilities, securities, and contractual obligations

EUR million 2024 2023
Rental guarantees 6.7 6.3

Nilfisk Holding A/S has issued rental guarantees relating to rental contracts in subsidiaries.

Nilfisk Holding A/S and all its Danish subsidiaries are subject to mandatory joint taxation. As the ultimate parent company in the Nilfisk Group, Nilfisk Holding A/S acts as the administration company of the joint taxation scheme and consequently settles all payments of tax with the tax authorities. Joint taxation contributions to/ from subsidiaries are recognized under income tax related to net profit. Tax payable and tax receivable are stated under current assets/liabilities.

Nilfisk Holding A/S is liable for obligations attributable to the activities, assets, and liabilities of NKT A/S that existed at the time of demerger in 2017, which is not expected to materially impact the Group's financial position.

12. Events after the balance sheet date

No events have occurred in the period from the balance sheet date until the presentation of the financial statements that materially affect the assessment of the financial statements of Nilfisk Holding A/S.

Accounting policies

Accounting policy

The financial statements for the parent company are included in this Annual Report in pursuance of the requirements of the Danish Financial Statements Act.

The financial statements for the parent company are prepared in accordance with the Danish Financial Statements Act for accounting class D companies.

The financial statement for the parent company covers the period from January 1 to December 31.

The Annual Report is presented in EUR million rounded to one decimal place. The presentation currency is EUR as the Nilfisk Group's main business activities are EUR denominated.

Description of accounting policies

In relation to the accounting policies described for the financial statements of the Nilfisk Group (see Note 1.1 to the consolidated financial statements), the accounting policies of the parent company differ in the following:

Income from investments in subsidiaries

Dividends from investments in subsidiaries companies are recognized in the income statement of the parent company in the year the dividends are declared.

Investments in subsidiaries

Investments in subsidiaries are measured at cost. If there is indication of impairment, impairment testing is carried out. Where the carrying amount exceeds the recoverable amount it is written down to the recoverable amount.

Tax

Nilfisk Holding A/S and all its Danish subsidiaries are subject to mandatory joint taxation. As the ultimate parent company in the Nilfisk Group, Nilfisk Holding A/S acts as the administration company of the joint taxation scheme and consequently settles all payments of tax with the tax authorities. Joint taxation contributions to/from subsidiaries are recognized under income tax related to net profit. Tax payable and tax receivable are stated under current assets/ liabilities. Companies that use tax losses in other companies pay joint taxation

contributions to the parent company equivalent to the tax base of the tax losses utilized. Companies whose tax losses are used by other companies receive joint taxation contributions from the parent company equivalent to the tax base of the tax losses utilized (full absorption).

Cash flow statement

The parent company has in accordance with the Danish Financial Statements Act, Section 86 (4) not prepared separate cash flow statements. See the consolidated cash flow statements. For the following notes, see information in the consolidated financial statements:

  • Remuneration Section 3 Remuneration
  • Share capital Note 6.4 Share Capital

Management's statement

The Board of Directors and the Executive Management Board have today considered and approved the Annual Report of Nilfisk Holding A/S for January 1 – December 31, 2024

The Annual Report is prepared in accordance with IFRS Accounting Standards as adopted by the EU and disclosure requirements for listed companies in Denmark, and the parent financial statements are prepared in accordance with the Danish Financial Statements Act.

In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at December 31, 2024 as well as of the results of their operations and the Group's cash flows for the financial year January 1 – December 31, 2024.

In our opinion, the Management Report is prepared in accordance with relevant laws and regulations and contains a fair review of the development of the Group's and the Parent's business and financial matters, the results for the year, and of the Parent's financial position and the financial position as a whole of the entities included in the consolidated financial statements, together with a description of the principal risks and uncertainties that the Group and the Parent face.

The Sustainability Statements are prepared in accordance with the European Sustainability Reporting Standards (ESRS) as required by the Danish Financial Statements Act as well as article 8 in the EU Taxonomy regulation.

Furthermore, in our opinion, the Annual Report of Nilfisk Holding A/S for the financial year January 1 – December 31, 2024, with the file name: NIL-2024-12-31-en.zip is prepared, in all material respects, in accordance with the ESEF Regulation.

We recommend the Annual Report for adoption at the Annual General Meeting.

Copenhagen, February 20, 2025

Executive Management Board

Jon Sintorn President & CEO Reinhard Josef Mayer CFO

Board of Directors

Göran Peter Nilsson Chair Are Dragesund Bengt Anders Lennart Thorsson Claus Dalmose Franck Falezan Viveka Marianne Ekberg Marcus Faber Kappendrup Gerner Raj Andersen Ole Kristian Jødahl Nadia Roya Damiri René Svendsen-Tune

Independent auditor's report

To the shareholders of Nilfisk Holding A/S

Report on the consolidated financial statements and the parent financial statements

Opinion

We have audited the consolidated financial statements and the parent financial statements of Nilfisk Holding A/S for the financial year January 1 – December 31, 2024, which comprise the income statement, balance sheet, statement of changes in equity and notes, including material accounting policy information, for the Group as well as the Parent, and the statement of comprehensive income and the cash flow statement of the Group. The consolidated financial statements are prepared in accordance with IFRS Accounting Standards as adopted by the EU and additional disclosure requirements for listed entities in Denmark, and the parent financial statements are prepared in accordance with the Danish Financial Statements Act.

In our opinion, the consolidated financial statements give a true and fair view of the Group's financial position at December 31, and of the results of its operations and cash flows for the financial year January 1 – December 31, 2024, in accordance with IFRS Accounting Standards as adopted by the EU and additional disclosure requirements for listed entities in Denmark.

Furthermore, in our opinion, the parent financial statements give a true and fair view of the Parent's financial position at December 31, and of the results of its operations for the financial year January 1 – December 31, 2024, in accordance with the Danish Financial Statements Act.

Our opinion is consistent with our audit book comments issued to the Audit Committee and the Board of Directors.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's

responsibilities for the audit of the consolidated financial statements and the parent financial statements" section of this auditor's report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements and the parent financial statements for the financial year January 1 – December 31, 2024. These matters were addressed in the context of our audit of the consolidated financial statements and the parent financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Valuation of development projects in progress

Management conducts quarterly impairment tests to determine whether the carrying amounts of recognised development projects in progress are considered to be impaired and, hence, should be written down to the recoverable amount. Management determines the recoverable amount of development projects using a discounted cash flow model (value in use).

Key assumptions used in the impairment test are estimated revenue, estimated margin, and the applied discount rate.

The audit of the recoverable amount has been considered a key audit matter as the determination of the recoverable amount is associated with significant estimation uncertainty.

Reference is made to note 4.2 and note 4.3 to the financial statements and the accounting policies.

How the matter was addressed in our audit

We have assessed the appropriateness of valuation of development projects in progress based on the quarterly impairment tests as well as the key assumptions used in the impairment tests and the consistency thereof with the Group's accounting policies. In this context, we

  • evaluated the appropriateness of Management's procedures for identifying impairment indicators and preparing impairment tests, including budget and business cases
  • tested relevant internal controls related to identification and evaluation of impairment needs
  • assessed the appropriateness of models and the key assumptions applied by Management to calculate the values in use and performed recalculation
  • tested the assumptions applied for sensitivity and consistency as well as traced to internal and external documentation that supports the key assumptions
  • assessed adequacy and appropriateness of the disclosures; Note 4.2 Impairment test and Note 4.3 Intangible Assets in the financial statements and compliance with the IFRS requirements

additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

To the best of our knowledge and belief, we have not provided any prohibited nonaudit services as referred to in Article 5(1) of Regulation (EU) No 537/2014.

We were appointed auditors of Nilfisk Holding A/S for the first time on October 12, 2017 for the financial year 2017. We have been reappointed annually by decision of the general meeting for a total continuous engagement period of 8 years up to and including the financial year 2024.

Statement on the Management Review

Management is responsible for the Management Review.

Our opinion on the consolidated financial statements and the parent financial statements does not cover the Management Review, and we do not as part of the audit express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements and the parent financial statements, our responsibility is to read the Management Review and, in doing so, consider whether the Management Review is materially inconsistent with the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

Moreover, we considered whether the Management Review includes the disclosures required by the Danish Financial Statements Act. This does not include the requirements in paragraph 99a related to the sustainability statement covered by the separate auditor's limited assurance report hereon.

Based on the work we have performed, in our view, Management Review is in accordance with the consolidated financial statements and the parent company financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act except for the requirements in paragraph

99a related to the sustainability statement, cf. above. We did not identify any material misstatement in Management Review.

Management's responsibilities for the consolidated financial statements and the parent financial statements

Management is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and additional disclosure requirements for listed entities in Denmark as well as the preparation of parent financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of consolidated financial statements and parent financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group's and the Parent's ability to continue as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate the Group or the Entity or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the consolidated financial statements and the parent financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and these parent financial statements.

As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

  • Identify and assess the risks of material misstatement of the consolidated financial statements and the parent financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the eff effectiveness of the Group's and the Parent's internal control.
  • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.

  • Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the consolidated financial statements and the parent financial statements, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Parent's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements and the parent financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and the Entity to cease to continue as a going concern.

  • Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and events in a manner that gives a true and fair view.

  • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the consolidated financial statements and the parent financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and, where applicable, safeguards put in place and measures taken to eliminate threats.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements and the parent financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on compliance with the ESEF Regulation

As part of our audit of the consolidated financial statements and the parent financial statements of we performed procedures to express an opinion on whether the annual report of Nilfisk Holding A/S for the financial year January 1 – December 31, 2024, with the file name NIL-2024-12-31-en.zip, is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation), which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the consolidated financial statements including notes.

Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes:

  • The preparing of the annual report in XHTML format;
  • The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for financial information required to be tagged using judgement where necessary;
  • Ensuring consistency between iXBRL tagged data and the consolidated financial statements presented in human readable format; and
  • For such internal control as Management determines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation.

Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor's judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error. The procedures include:

  • Testing whether the annual report is prepared in XHTML format;
  • Obtaining an understanding of the company's iXBRL tagging process and of internal control over the tagging process;
  • Evaluating the completeness of the iXBRL tagging of the consolidated financial statements including notes;
  • Evaluating the appropriateness of the company's use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identified;
  • Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and
  • Reconciling the iXBRL tagged data with the audited consolidated financial statements.

In our opinion, the annual report of Nilfisk Holding A/S for the financial year January 1 – December 31, 2024, with the file name NIL-2024-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.

Copenhagen, February 20, 2025

Deloitte

Statsautoriseret Revisionspartnerselskab CVR No. 33 96 35 56

Kirsten Aaskov Mikkelsen State-Authorised Public Accountant Identification No (MNE) mne21358

Sumit Sudan State-Authorised Public Accountant Identification No (MNE) mne33716

MR SS FS

Management's statement

Independent auditor's report Independent auditor's report ESG

Independent auditor's limited assurance report on Sustainability Statements

To the shareholders of Nilfisk Holding A/S

Limited assurance conclusion

We have conducted a limited assurance engagement on the Sustainability Statements of Nilfisk Holding A/S (the "Group") included in the Management Report (the "Sustainability Statements") for the financial year January 1 – December 31, 2024.

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statements is not prepared, in all material respects, in accordance with the Danish Financial Statements Act paragraph 99 a, including:

  • compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the management to identify the information reported in the Sustainability Statements (the "Process") is in accordance with the description set out in the subsection "Double Materiality Assessment methodology"; and
  • compliance of the disclosures in subsection "EU Taxonomy" within the environmental section of the Sustainability Statements with Article 8 of EU Regulation 2020/852 (the "Taxonomy Regulation").

Basis for conclusion

We conducted our limited assurance engagement in accordance with ISAE 3000 (Revised), Assurance engagements other than audits or reviews of historical financial information, and additional requirements applicable in Denmark.

The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this standard are further described in the "Auditor's responsibilities for the assurance engagement" section of our report.

Our independence and quality management

We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

Deloitte Statsautoriseret Revisionspartnerselskab applies International Standard on Quality Management 1, ISQM1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Other matter

The comparative information included in the Sustainability Statements of the Group was not subject to an assurance engagement on sustainability information prepared in accordance with the Danish Financial Statements Act section 99a. Our conclusion is not modified in respect of this matter.

Inherent limitations in preparing the Sustainability Statements

In reporting forward-looking information in accordance with ESRS, management is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected.

Management's responsibilities for the Sustainability Statements

Management is responsible for designing and implementing a process to identify the information reported in the Sustainability Statements in accordance with the ESRS and for disclosing this Process in the subsection "Double Materiality Assessment methodology" of the Sustainability Statements. This responsibility includes:

  • understanding the context in which the Group's activities and business relationships take place and developing an understanding of its affected stakeholders;
  • the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or

could reasonably be expected to affect, the Group's financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term;

  • the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by selecting and applying appropriate thresholds; and
  • making assumptions that are reasonable in the circumstances.

Management is further responsible for the preparation of the Sustainability Statements, in accordance with the Danish Financial Statements Act paragraph 99a, including:

  • compliance with the ESRS;
  • preparing the disclosures in subsection "EU Taxonomy" within the environmental section of the Sustainability Statements, in compliance with Article 8 of the Taxonomy Regulation;
  • designing, implementing and maintaining such internal control that management determines is necessary to enable the preparation of the Sustainability Statements that is free from material misstatement, whether due to fraud or error; and
  • the selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasonable in the circumstances.

Auditor's responsibilities for the assurance engagement

Our objectives are to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statements are free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the Sustainability Statements as a whole.

As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engagement.

Our responsibilities in respect of the Process include:

  • obtaining an understanding of the Process but not for the purpose of providing a conclusion on the effectiveness of the Process, including the outcome of the Process;
  • considering whether the information identified addresses the applicable disclosure requirements of the ESRS, and
  • designing and performing procedures to evaluate whether the Process is consistent with the Group's description of its Process, as disclosed the subsection "Double Materiality Assessment methodology" of the Sustainability Statements.

Our other responsibilities in respect of the Sustainability Statements include:

  • identifying disclosures where material misstatements are likely to arise, whether due to fraud or error; and
  • designing and performing procedures responsive to disclosures in the sustainability statement where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Summary of the work performed

A limited assurance engagement involves performing procedures to obtain evidence about the Sustainability Statements.

The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the Sustainability Statements.

In conducting our limited assurance engagement, with respect to the Process, we:

  • obtained an understanding of the Process by performing inquiries to understand the sources of the information used by management; and reviewing the Group's internal documentation of its Process; and
  • evaluated whether the evidence obtained from our procedures about the Process implemented by the Group's was consistent with the description of the Process set out in the subsection "Double Materiality Assessment methodology" of the Sustainability Statements.

In conducting our limited assurance engagement, with respect to the Sustainability Statements, we:

  • obtained an understanding of the Group's reporting processes relevant to the preparation of its Sustainability Statements including the consolidation processes by obtaining an understanding of the Group's control environment, processes and information systems relevant to the preparation of the Sustainability Statements but not evaluating the design of particular control activities, obtaining evidence about their implementation or testing their operating effectiveness;
  • evaluated whether material information identified by the Process is included in the Sustainability Statements;
  • evaluated whether the structure and the presentation of the Sustainability Statements are in accordance with the ESRS;
  • performed inquiries of relevant personnel and analytical procedures on selected information in the Sustainability Statements;

  • performed substantive assurance procedures on selected information in the Sustainability Statements;
  • evaluated methods, assumptions and data for developing material estimates and forward-looking information and how these methods were applied;
  • obtained an understanding of the process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the Sustainability Statements.

Copenhagen, February 20, 2025

Deloitte

Statsautoriseret Revisionspartnerselskab CVR-nr. 33963556

Kirsten Aaskov Mikkelsen Sumit Sudan
State-Authorised Public Accountant State-Authorised Public Accountant
Identification No (MNE) mne21358 Identification No (MNE) mne33716

Nilfisk's Annual Report 2024 was published on February 20, 2025. The report is also available at www.nilfisk.com.

Nilfisk Holding A/S, Marmorvej 8, 2100 Copenhagen Ø, Denmark.

Company reg. No. 38 99 88 70

Investor Relations contact [email protected]

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