Lamor Corporation Oyj

Annual Report • Mar 6, 2025

Lamor Corporation Plc Financial Statements Release

January–December 2024

1 | Lamor Financial Statements Release 1–12/2024 |

Lamor Corporation Plc Financial Statements Release 1 January–31 December 2024

A strong cash flow during the fourth quarter

Lamor's determined efforts to reduce working capital were reflected in strong cash flow in the fourth quarter. Revenue and profitability increased from the previous quarter, but for the full year, the company still fell short of its targets. In Lamor's updated strategy, operational and sales resources are more rigorously focused on those markets where the greatest opportunities for profitable growth are seen. Investments are primarily directed towards initiating the plastic recycling business, where the company sees significant long-term potential.

October–December 2024 in brief

• Revenue was EUR 32.6 million (34.8), a decrease of 6.3%
• EBIT was EUR 1.7 million (3.0) or 5.1% of revenue (8.7%), a decrease of 45.5%
• Adjusted EBIT was EUR 2.4 million (4.4) or 7.5% of revenue (12.6%), a decrease of 44.1%
• Net cash flow from operating activities was EUR 32.2 million (2.3)
• Net working capital decreased by EUR 28.9 million euros during the quarter, amounting to EUR 54.8 million euros at the end of the period (62.2).
• Earnings per share (basic) was EUR -0.02 (0.01)
• Orders received was EUR 15.9 million (10.0), an increase of 59.2%
• In October-November, Lamor announced a renewal of its management team to strengthen local customer and market understanding
• In December, the company published an updated strategy and long-term financial targets

January–December 2024 in brief

• Revenue was EUR 114.4 million (122.5), a decrease of 6.6%
• EBIT was EUR 5.3 million (8.4) or 4.6% of revenue (6.9%), a decrease of 36.9%
• Adjusted EBIT was EUR 6.4 million (11.3) or 5.6% of revenue (9.2%), a decrease of 43.6%
• Net cash flow from operating activities was EUR 16.6 million (-12.7)
• Net working capital decreased by EUR 7.5 million euros during the financial year, amounting to EUR 54.8 million euros at the end of the period (62.2).
• Earnings per share (basic) was EUR -0.06 (0.09)
• Orders received was EUR 80.9 million (44.0), an increase of 84.2%
• Order backlog at the end of the period amounted to EUR 88.0 million (124.2)

The figures in brackets refer to the comparison period, which is the same period the previous year, unless otherwise stated.

Johan Grön, CEO

In the fourth quarter, Lamor's determined efforts in the second half of the year to streamline the billing processes in Kuwait yielded results, and we succeeded in turning the company's cash flow for the entire year clearly positive. Overall, the year 2024 was a year of change and renewal for us, during which we laid important groundwork for the development of our business for the new strategic period. During the year, the company's large service projects required attention, temporarily congesting our resources, but we took several steps to improve our operations and sales.

Although we fell short of our growth and profitability targets, total order intake for the year nearly doubled to over 80 million euros from the previous year (44 million euros), despite the postponement of large equipment orders in the last quarter to this year. Environmental protection equipment business continued to develop positively from the previous year but was not sufficient to compensate for the lower revenue recognition from large service projects compared to the comparison period. The lower level of revenue was reflected in profitability below our targets for the entire year and the last quarter.

During the year, Lamor clarified its organizational operating models and renewed the company's management team to strengthen local customer and market understanding. We completed several internal development projects, and updated the company's long-term financial targets. The update particularly took into account the operational and financial lessons learned from large service projects.

After a year of changes, I am confident that the company is heading into the right direction. Reaching our targets will require strong order intake, especially in the first half of the year, and we expect it to be visible in our revenue only in the second half. To strengthen our order backlog, we have now focused our operational and sales resources more rigorously on the markets where we see the greatest growth opportunities. A key objective is to continue increasing equipment sales globally while balancing the company's project portfolio with new soil remediation and material recycling projects. Lamor has strong expertise in solving hydrocarbon-based pollution and environmental challenges, and we can offer this expertise to our customers broadly and scalably based on Lamor's global partner network.

Our view of the significant opportunities in the markets has not changed. One of the significant investments in our strategic period is the plastic recycling business, where we leverage our expertise in hydrocarbons to bring a new innovative circular economy solution to our customers. There is substantial and growing demand for circular oil in the market. We have invested significantly in the completion of the first production line in Kilpilahti, as we see this as a unique opportunity for Lamor to create new continuous and profitable business. Our commitment to the project is evident in our recent agreement to fully acquire Lamor Recycling Oy in March. After the turn of the year, we also updated the project's estimated schedule, postponing initiating production to the third quarter due to delays in process technology deliveries. Otherwise, the installations are largely complete, and the investment needs to complete the concept plant have now been identified.

I would like to conclude by thanking all Lamor employees. The recent oil tanker accident in the Baltic Sea in February was an important reminder that geopolitical risks are real, and the same poorly maintained vessels are a risk at all major maritime traffic hubs worldwide. Lamor operates in these threat situations around the world seven days a week. There is a need for the work we do. And despite working in challenging conditions around the world, we had only one accident leading to an absence for every 3.5 million working hours in 2024.

Key figures

EUR thousand (unless otherwise noted)	Q4 2024	Q4 2023	Change %	1-12/2024	1-12/2023	Change %
Revenue	32,575	34,775	-6.3%	114,396	122,520	-6.6%
EBITDA	2,709	5,710	-52.6%	11,587	16,182	-28.4%
EBITDA margin %	8.3 %	16.4%		10.1 %	13.2%
Adjusted EBITDA	3,440	6,992*	-50.8%	12,422	18,838*	-34.1%
Adjusted EBITDA margin %	10.6 %	20.1%		10.9 %	15.4%
Operating profit or loss (EBIT)	1,658	3,039	-45.5%	5,315	8,426	-36.9%
Operating profit (EBIT) margin %	5.1 %	8.7%		4.6 %	6.9%
Adjusted operating Profit (EBIT)	2,449	4,380*	-44.1%	6,385	11,317*	-43.6%
Adjusted operating Profit (EBIT) margin %	7.5 %	12.6%		5.6 %	9.2%
Profit (loss) for the period	-547	382		-1,273	2,679
Earnings per share, EPS (basic), euros	-0.02	0.01		-0,06	0.09
Earnings per share, EPS (diluted), euros	-0.02	0.01		-0,06	0.09
Return on equity (ROE) %	-0.9%	0.6%		-2.0%	4.3%
Return on investment (ROI) %	1.3%	2,8%		4.5%	8.7%
Equity ratio %	37.5%	40.0%		37.5%	40.0%
Net gearing %	62.1%	60.7%		62.1%	60.7%
Net working capital	54,751	62,245	-12.0%	54,751	62,245	-12,0%
Orders received	15,875	9,970	59.2%	80,938	43,950	84,2%
Order backlog*	88,020	124,192	-29.1%	88,020	124,192	-29,1%
Number of employees at the period end	643	840	-23.5%	643	840	-23,5%
Number of employees on average	620	743	-16.6%	636	658	-3,3%

* Restructuring costs related to adjustments in 2023 have been adjusted to reflect the changed calculation formula in the financial year 2024. Previously reported adjusted operating profits were EUR 10,943 thousand (1–12/2023) and EUR 4,033 thousand (Q4/2023), while adjusted EBITDA was EUR 18,464 thousand (1–12/2023) and EUR 6,645 thousand (Q4/2023).

Guidance for 2025

• Revenue is expected to increase compared to the previous year (2024: EUR 114.4 million).
• Adjusted operating profit is expected to increase compared to the previous year (2024: EUR 6.4 million).

Assumptions

The guidance is based on the existing order backlog and the management's view on market demand and known tenders. The company is currently negotiating several significant equipment sales and medium-sized service contracts in all its market areas.

Revenue is expected to be below the comparison period during the first half of the year and exceed it during the second half of the year. Achieving the revenue guidance requires a strong accumulation of new orders in the first half of the year. In 2025, the revenue from the continuing large service project in Kuwait is expected to be at the same level as the previous year, while the growth of other revenue outside of large service projects is expected to continue. For plastic recycling, the guidance assumes revenue will be limited during 2025.

In terms of profitability, the company estimates that the enhancement of sales and operational activities will lead to improved profitability, but the planned measures will have a more significant impact in 2026.

Long-term financial targets

The company's long-term financial targets (by the end of 2027) are:

• Growth: Increase revenue to EUR €170 million
• Profitability: Adjusted operating profit (EBIT) over 14% of revenue
• Dividend policy: Aim to distribute dividends, considering business development
• Capital structure: Suitable for the company's strategy, targets, and project portfolio by maintaining a strong balance sheet

Strategy

On December 19, 2024, Lamor updated its strategy and long-term financial targets for the period 2025–2027. The aim for the strategy period is to strengthen Lamor's position and achieve profitable growth in all market areas and product lines.

Lamor's vision is to become one of the world's leading environmental protection and recovery companies. Lamor has strong expertise in solving hydrocarbon-based pollution and environmental challenges, which the company leverages through its global network built over decades.

The demand for environmental services is expected to grow due to increased awareness, corporate and governmental focus on climate and biodiversity, tightening regulations, increasing geopolitical risks, and widespread legacy pollution.

Cornestones of profitable growth:

• The company's environmental protection equipment and service sales, built over more than 40 years, will be grown globally by enhancing and expanding sales
• The soil remediation and material recycling product lines will grow with a more focused approach, concentrating the company's growth efforts on strengthening Lamor's position in existing bridgehead markets and their surrounding regions, where the greatest potential is seen
• In terms of chemical recycling of plastics, Lamor sees strong market demand and continues progressing towards the production phase of its first concept plant. Upon reaching this, Lamor will during 2025 assess how to best scale the business towards the 100-tonne target
• Profitability will be improved by focusing and increasing efficiency sales, offering, and operations

Market outlook

Globally increasing environmental awareness creates continuous demand for sustainable environmental solutions. The objectives set for the green transition emphasise mitigation of climate change, protection of biodiversity and recycling of materials. Increased understanding of the sensitivity of ecosystems has added pressure for the governmental and private sectors to be better prepared for future incidents, to increase material recycling, and to finance the clean-up operations of legacy contamination. Lamor leverages its strong expertise and references to grow in these market segments and further expand its presence. Lamor expects the demand for its solutions to increase significantly also in the future.

Increased environmental awareness has led to tightening environmental legislation. Consequently, the demand for oil spill response technology and services related to environmental protection has increased. A growing proportion of the demand is targeted to total solutions, which include also training and continuous preparedness as-a-service in addition to consulting and technology. In addition to increasing environmental awareness, demand is driven by on-going crisis, such as those in the Middle East and Ukraine, which raise the risk of environmental incidents in the Red Sea and the Baltic Sea significantly. The increased risk level can result in a greater inclination to prepare for such risks in the neighbouring regions.

The increasing awareness has also led governments and the private sector to pay attention to legacy soil and water contamination. There is a large number of restoration liabilities arising from earlier environmental incidents on a global level, and for instance a remarkable number of earlier significant oil spills still remain uncleaned. The market in soil remediation and restoration is

currently very active. Lamor participates in several on-going soil remediation tendering processes of different sizes, especially in the Middle East, Africa, and South America.

As a part of their actions to combat climate change, the petrochemical industry aims at decreasing the need for virgin crude oil. Material recycling offers one part of the solution. The amount of plastic waste in the world has doubled in the past 20 years. Currently, approximately only one tenth of all plastic waste is recycled correctly. Lamor participates in solving the global plastic waste problem by building a chemical recycling facility for plastics in Finland, with the aim of building similar facilities in its strong market areas by utilising its global network. There is also a growing need for Lamor's water and waste treatment solutions worldwide. Developing economies are seeking solutions for hazardous waste and industrial effluent treatment, as well as for producing clean potable water flexibly. Additionally, ports in the Global South require reception services for ship-generated MARPOL waste to meet international requirements.

Risks and business uncertainties

Risks related to Lamor's operating environment, legal regulations, business operations, financing, and financial position are described in more detail in the 2023 annual report, available on the company's website.

Near-term risks and uncertainties

The geopolitical risk level in the market remains elevated due to multiple global conflicts and political instability. The situation has escalated in certain countries in the Middle East, and the instability has also continued in certain South American countries. Additionally, Russia's war in Ukraine is still ongoing. Risks have also increased in the Baltic Sea. Beyond the deterioration of general security conditions, these conflicts impact Lamor's business in many ways, and significantly increase the risk of oil spills. The situation may also have a negative impact on Lamor's business changing for instance the schedules and costs of the projects as well as the supply chains and the local operating possibilities.

Lamor's business is global, and the company is exposed to political, economic, regulatory and social conditions and risks related to those in its operating countries. In addition to equipment sales, a significant part of Lamor's business consists of medium-sized and large service projects based on tenders. In particular, the continuity of the largest projects, as well as uncertainties related to the timing and success of tenders, can significantly impact Lamor's revenue and profitability. Additionally, the schedule for the commissioning and ramp-up of the first concept plant for plastic recycling may impact the company's profitability and investments, as well as, to a limited extent, this year's revenue.

The development of Lamor's business is also partially dependant on the overall economic trends and the political decision-making guiding public finances. While interest rates have decreased from their previous high levels, fluctuations can still impact Lamor's financing costs. Additionally, potential global trade wars and the resulting increase in tariffs could affect Lamor, but at this stage, it is difficult to assess their effect.

Business review (Q4/2024)

Lamor is one of the globally leading providers of environmental solutions. The company's revenue is generated from three product lines: environmental protection, soil remediation and restoration, and material recycling. Synergy in the product portfolio is at the core of Lamor's business. Environmental protection includes solutions for preventing and cleaning environmental incidents both at sea and on land. Soil remediation and restoration includes restoration of contaminated land areas, promoting ecological recovery and biodiversity. Furthermore, Lamor develops and delivers

waste management and water treatment solutions that support the sustainable use of natural resources and promote circular economy. These include the chemical recycling of plastic.

Lamor aims for significant long-term growth in all market areas and product lines, in accordance with its strategy. Lamor is determined to grow continuing equipment and service business by expanding and deepening customer relationships, as well as improving the efficiency of its own sales network and agent network. With regard to service projects, during the 2025-2027 strategy period, the company will focus primarily on medium-sized projects, but larger projects are also possible. The company is exploring more flexible financing models to fund these larger projects.

Lamor has one reporting segment. In addition, the company reports its revenue by product lines, market areas, and equipment and services.

Revenue split 1-12/2024

Environmental protection

For decades, Lamor has been a strategic partner for local authorities and energy companies helping them improve their environmental protection capabilities around the world. Lamor has also participated in the clean-up and environmental protection projects related to major oil spill incidents, which has strengthened its position as a global leader in oil spill response and control.

During the fourth quarter, revenue from environmental protection increased from the comparison period. Revenue grew across all market areas, with the most significant impact in the Middle East due to equipment deliveries to Saudi Arabia. Lamor continued three smaller environmental damage cleanup projects in Peru and Ecuador and carried out several significant equipment deliveries in Europe and Asia.

In December, Lamor announced that it had agreed on a new allocation of responsibilities with NEOM Company, under which Lamor will supply oil spill response technology worth a total of EUR 9 million to the customer. Lamor adjusted the value of NEOM Company's order in its order backlog to

reflect the above-mentioned total value of the agreement. Most of the deliveries were completed in December. With these significant equipment deliveries, Lamor's installed equipment base in the key Middle Eastern market grew significantly once again.

In October, the company announced that it had signed a three-year, 2 million euro contract for the maintenance and development of oil spill response capabilities in Colombia. This contract includes technical support, training, and updating of contingency plans. During the quarter, Lamor also continued to develop its oil spill response technology rental business in the Netherlands, strategically located near good international connections.

Soil remediation and restoration

Lamor aims at being the preferred strategic partner in the remediation and restoration of contaminated soil and to expand its operations into new countries. The major projects won in the Middle East and South America have been incremental in the growth of this business. They have strengthened both local connections as well as Lamor's technological and operative competencies enabling participation in similar projects globally.

During the fourth quarter, soil remediation revenue slightly decreased from the comparison period. Most of the revenue came from Kuwait, where all soil remediation processes were operational throughout the quarter. Biological remediation operations continued effectively, and the soil washing process reached its target level also in the northern area during the quarter.

Soil remediation projects also continued in South America (Ecuador) and Oman.

Material recycling

Lamor's material recycling business focusses on the sustainable use of natural resources and promotion of circular economy. The company delivers waste management and water treatment solutions that reduce environmental impact and support sustainable development. Recent significant projects, such as the delivery of the MARPOL waste treatment facility at Mongla Port in Bangladesh, innovative water treatment solutions in aquaculture, and the plastic chemical recycling plant under construction in Finland, are creating new growth opportunities for Lamor. The facility will be the first industrial-scale plastics chemical recycling facility in Finland with its first phase of 10,000 tons of annual processing capacity. It will be a concept facility, with which Lamor targets a 100,000-ton plastic recycling portfolio.

During the fourth quarter, the revenue from material recycling slightly decreased from the comparison period. Most of the revenue during the quarter came from South America (Guyana), but smaller projects were also ongoing in Oman and Senegal.

Regarding the Bangladesh project, the infrastructure work under the responsibility of an external supplier was able to commence, which enabled the start of the construction of the MARPOL waste treatment facility (Port Reception Facility, PRF) under Lamor's responsibility after the review period at the end of January. The management's estimate for the completion of the project remains unchanged, and it is expected to be completed by the end of the first half of 2025. During the quarter, Lamor received an order related to the preliminary planning of another MARPOL project located in the Middle East.

For the first phase of the Kilpilahti plastic recycling plant, all construction work phases were underway in the fourth quarter. Inside the plant, installation work continued, and the design and preparation work for the process equipment progressed. The construction of the process equipment advanced, but due to identified additional work, management estimates that production can be initiated during the third quarter of the year. The ramp-up of the concept plant's production will take place in phases, and the expected revenue during 2025 is limited. Market demand for the endproduct has remained very strong. After the review period, Lamor acquired the minority share from Resiclo Oy, after which the plastic recycling business is entirely owned by Lamor.

Financial performance

Revenue (EUR million) and adjusted EBIT % per quarter

* Order intake and the order backlog for the second quarter of 2024 have been adjusted to reflect the updated order for the NEOM project.

October–December 2024

During the last quarter, the Group's revenue amounted to EUR 32.6 million (34.8). Revenue decreased by 6.3% from the comparison period, and in comparable currency rates, revenue decreased by 7.7%. Revenue in the fourth quarter of 2024 was particularly driven by projects in Kuwait and Saudi Arabia, as well as equipment deliveries in Europe and Asia.

Adjusted EBIT was 2.4 million euros and 7.5% of revenue (4.4 and 12.6%). Adjusted operating profit decreased by 44.1% from the comparison period. The profitability decrease was mainly impacted by one-time items related to completed projects, which increased fixed costs. The group's profit before taxes was EUR 0.5 million (0.6).

During the review period, the value of new orders received was EUR 15.9 million (10.0), which is 59.2% more than in the comparison period. The most significant factor was the transfer of the updated EUR 9 million order from the Saudi Arabian NEOM Company from Q2 to Q4. Correspondingly, the original EUR 55 million order was removed from Q2.

Net working capital decreased from EUR 83.7 million at the beginning of the quarter to EUR 54.8 million (62.2) at the end of the period, a decrease of EUR 28.9 million. The decrease in working capital in the last quarter was mainly due to invoicing and payments received from the Kuwait project and the advance payment for the NEOM project.

January–December 2024

During the reporting period, the Group's revenue amounted to EUR 114.4 million (122.5). Revenue decreased by 6.6% from the comparison period. At comparable exchange rates, revenue decreased by 6.7%. The ongoing land remediation project in Kuwait, the environmental protection project in Saudi Arabia, deliveries to Bangladesh, the cleanup of environmental damage in South America and the delivery of equipment to Asia (Hong Kong, Singapore) were the most significant individual projects that affected the January-December revenue.

Adjusted EBIT was EUR 6.4 million (11.3) and 5.6% of the period's revenue (9.2%). Profitability was weakened by the lower level of revenue and one-time items related to completed projects, which increased fixed costs during the fourth quarter.

The order backlog at the end of the period was EUR 88.0 million (124.2). The value of new orders received during the review period was EUR 80.9 million (44.0), which is 84.2% more than in the comparison period. The amount of orders received and the order backlog for the second quarter of 2024 have been adjusted to reflect the updated order for the NEOM project.

Depreciation was 6.3 million euros (7.8) and included 3.6 million euros (4.1) of depreciation of rightof-use assets (IFRS 16), which are mainly related to the vessels used in the group's projects in Saudi Arabia and land lease agreement in Kilpilahti plastic recycling facility.

Financial income and expenses, EUR -5.8 million (-5.2), consisted of interest and guarantee costs for business financing, as well as valuations of US dollar-denominated and dollar-linked receivables and liabilities and related currency hedging. The increase from the comparison period was caused by the interest costs of the green bond issued in August 2023.

The group's profit before taxes was EUR -0.4 million (3.2). Earnings per share (undiluted) in January-December 2024 was -0.06 euros (0.09).

Net cash flow from operations was EUR 16.6 million (-12.7). The committed net working capital on December 31, 2024 was EUR 54.8 million (62.2). The decrease in working capital compared to the comparison period was due to project invoicing payments received at the end of the year and an increase in short-term liabilities. Cash flow from investments was EUR -15.8 million (-6.9).

The group's equity ratio was 37.5% (40.0%) and the net debt ratio was 62.1% (60.7%). The net gearing ratio was particularly impacted by new bank loans and credit facilities drawn during the financial year.

Investments

In January–December 2024, investments in tangible and intangible assets were 19.4 million euros (7.4). The growth in January–December was especially influenced by the investments and development costs of the pilot plant for chemical recycling of plastic in Kilpilahti.

The right-of-use assets, primarily related to the land lease agreement for the Kilpilahti plastic recycling plant, amounted to EUR 2.6 million at the end of the period (5.0).

In January–December 2024, depreciation and impairment totaled EUR 6.3 million (7.8).

Financial position

Lamor's interest-bearing liabilities consist of bank loans, bonds, capital loans and lease contract liabilities according to the IFRS 16 standard. Lamor's interest-bearing liabilities on December 31, 2024 were EUR 56.9 million (49.8), of which lease liabilities were EUR 2.7 million (5.4). The group's net liabilities were EUR 40.0 million (38.8). At the end of the review period, the group's cash and cash equivalents were EUR 16.9 million (11.0).

Lamor's senior conditional financing included a EUR 25.0 million green bond issued in August 2023, whose payments are secured by a post-mortgage for Lamor's corporate mortgages. In addition, it included a total of EUR 7.9 million in financial institution loans, including Lamor Recycling's EUR 4.4 million loan. The group has a financing limit of 11.0 million euros and a credit account of 7.0 million euros as well as 1.0 million euros credit account for Lamor Recycling. At the end of the review period on December 31, 2024, 9.5 million euros were used from the financing limit and 1.0 million euros from the credit account. In addition, Lamor had a total of EUR 1.0 million worth of undrawn loans related to the investment project of a plastic chemical recycling plant.

At the end of the review period, there were 0.7 million euros in other financial institution loans. The value of the guarantees given at the end of the period was EUR 35.8 million (42.9). When evaluating the amount of interest-bearing debt financing, it is good to also take into account the amount of the company's total liabilities, including the company's guarantee obligations, which especially apply to large delivery projects.

At the end of the review period, the company had a total of 10.5 million euros in capital loans. The capital loan granted by the State Treasury related to Business Finland's growth engine competition was 5.5 million euros. In addition, the Climate Fund has granted a capital loan for the company's plastic chemical recycling project, from which the company has withdrawn 5.0 million euros. Capital loans have a secondary position compared to senior financing and are not taken into account in the covenant calculation.

Personnel and management

During January–December 2024, Lamor employed on average 636 (658) persons. At the end of the period, Lamor employed 643 (840) persons. The number of personnel fluctuates according to the major projects Lamor has on-going at each time.

At the time of the publication of this report, Lamor Group's Leadership Team consisted of the following people:

• Johan Grön, CEO
• Mikko Forsell, CFO
• Richard Hill, COO
• Jesus Pelayo, SVP, North and South America
• Rob James, SVP, Europe and Asia
• Aziz Al-Othman, SVP, Middle East and Africa
• Mervi Oikkonen, VP, People and Culture

On October-November Lamor announced the renewal of its Group Leadership Team to strengthen local customer and market understanding. On 23 October 2024, Lamor announced that Rob James had been appointed as SVP, Europe and Asia (as of 11 November 2024) and Aziz Al-Othman had been appointed as SVP, Middle East and Africa (as of 1 November 2024). On 12 November 2024 the Company announced that Jesus Pelayo had been appointed as SVP, South and North America (as of 1 January 2025) and Richard Hill had been appointed as Chief Operating Officer (as of 13 November 2024). All appointees became members of the Lamor Group Leadership Team. In connection with the changes, it was announced that SVP for South and North America, Santiago Gonzalez, will retire as planned but will remain with Lamor in an advisory role to ensure a smooth transition.

Sustainability

Sustainability is at the core of Lamor's strategy. The core of Lamor's business is to develop solutions that have positive impacts on environmental protection, soil remediation and restoration, as well as material recycling. Lamor's solutions help the company, its customers, and partners to promote the circular economy and the careful use of scarce natural resources, while protecting biodiversity. The company's sustainable business is based on strategic collaboration with customers and partners, as well as continuous innovation. Lamor operates in challenging conditions around the world, making safety a strong focus of the company's sustainable development.

In 2024, Lamor has significantly invested in the development of sustainability reporting. In the first half of the year, the company selected and refined its ESG metrics to strengthen its sustainability practices and better align them with ESRS requirements. Additionally, the processes for impact and data analysis were improved, including life cycle assessments (LCA) and due diligence processes, and the double materiality assessment (DMA) was completed. The analysis of products continued with the aim of identifying currently taxonomy-aligned products and the opportunities for developing current products and services to become taxonomy-aligned. From the safety perspective, the company performed excellently: there was only one lost-time injury during the year. Lamor's Lost Time Incident Rate (LTIR) was 0.29, which is significantly lower than the industry benchmark. In May, Lamor was awarded the Nasdaq Green Equity Transition Designation.

In the fourth quarter, Lamor focused particularly on examining the environmental and social impacts of its own operations following the completion of the double materiality assessment. The 2024 annual report will be the first to include a sustainability report in accordance with the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS), as part of the Board of Directors' Report. The report will contain comprehensive information on the company's significant environmental, social responsibility, and governance (ESG) impacts, risks, and opportunities, in line with EU regulatory requirements. The report will be published at the latest on 7 April 2025.

Governance

Annual General Meeting's authorisations to the Board of Directors

The Board of Directors did not use the authorisations by the 2024 Annual General Meeting during the reporting period. Additional information about the authorisations is available in the Half-Year Financial Report.

Update of the Disclosure Policy

On 1 October 2024, the Company announced that the Board of Directors had approved Lamor's updated Disclosure Policy. The update includes various technical and stylistic updates, specified responsibilities related to the approval of stock exchange releases and company announcements and specified criteria for publishing press releases. The changes took effect immediately. The updated Disclosure Policy is available on the company's website at https://www.lamor.com/investors/governance/disclosure-policy.

Shares and share capital

Lamor has one share class. Each share has equal voting rights, and all shares of the company provide equal rights to dividend. There are no voting restrictions related to the shares. The shares do not have a nominal value. The shares have been issued in accordance with Finnish laws, and all shares have been paid in full. The shares are denominated in euros. Lamor's shares are registered in the Finnish book-entry system maintained by Euroclear Finland, and they are traded on the main list of Nasdaq Helsinki Ltd.

Share capital and the number of shares and the shareholders

	31 Dec 2024	31 Dec 2023
Share capital, EUR	3,866,375.40	3,866,375.40
Shares total	27,502,424	27,502,424
of which treasury shares	542,450	542,450
Market value, EUR million	33.4	69.8
Number of shareholders	5,803	6,486

Trading

Trading of Lamor shares in Nasdaq Helsinki	1–12/2024	1–12/2023
Share revenue, million shares	2.0	1.7*
Value of trading, EUR million	3.9	6.4
Closing price on the last trading day, EUR	1.22	2.59
Highest price, EUR	2.66	4.85
Lowest price, EUR	1.12	2.33

* Approximately 1.42 million shares were traded on the Nasdaq First North Premier segment marketplace between January 1 and November 22, 2023, and approximately 0.28 (0) million shares were traded on the stock exchange between November 23 and December 31, 2023.

Share-based incentives

In February, Lamor's Board of Directors resolved (stock exchange release, 16 February 2024) on establishing a new share-based incentive plan for the company's key employees. The performancebased share incentive plan has one earning period that covers the fiscal years 2024-2026. The program's target group includes approximately nine key employees, including the members of the

Group Leadership Team and the CEO. The potential rewards to be paid based on the plan correspond to the value of a maximum of 700,000 Lamor's shares, including the portion paid in cash. Any rewards earned from the plan will be paid during the financial years 2025-2027.

Events after the reporting period

On 8 January 2025, Lamor announced the company had received an EUR 8 million order for environmental protection technology from Kuwait. The technology will used to protect marine life and the shores of the Arabian Gulf. The order has been entered into Lamor's order backlog in the first quarter of 2025 and will be delivered in the second half of 2025.

On 26 February 2025, Lamor announced the proposals by the Shareholders' Nomination Board to Lamor Corporation Oyj's Annual General Meeting 2025. The Nomination Board proposes that the board's five current members be re-elected. Additionally, the Nomination Board proposes that the board's remuneration remains unchanged and recommends that board members acquire company shares at the price paid in public trading with 40 percent of the board member's gross fixed annual fee until the value of the shares in the company owned by the respective member equals twice their gross fixed annual fee.

Board of Directors' proposal for profit distribution

The parent company's distributable funds on 31 December 2024 EUR were 12,505,566.09 of which net loss for the financial year was EUR -14,022,774.91. The Board of Directors proposes to the Annual General Meeting that no dividend be distributed and that the result for the financial year 2024 be entered in the retained earnings.

Annual General meeting

Lamor's Annual General Meeting is planned to be held on Tuesday 28 April 2025 starting at 1:00 p.m. EET. Lamor will convene the Annual General Meeting with a separate stock exchange release.

Financial calendar for 2025

In 2025, Lamor will publish financial reports as follows:

• Interim report January−March 2025: on 8 May 2025
• Half-year report January−June 2025 on 31 July 2025
• Interim report January−September 2025 on 30 October 2025

The annual report 2024, including financial statements and report by the Board of Directors, is estimated to be published on Lamor's website on 7 April 2025, the latest.

Webcast for shareholders, analysts and media

Webcast for shareholders, analysts and media on the results for the financial period January– December 2024 will be arranged on 6 March 2025 at 12:00 p.m. EET. The webcast includes a Q&A session, and participants can ask questions in English and Finnish via the event chat room. The webcast can be followed at lamor.events.inderes.com/q4-2024.

A recording of the webcast will be available later at the company's website at lamor.com/investors/reports-and-presentations.

Porvoo, 6 March 2025 Lamor Corporation Plc Board of Directors

Further enquiries

Lamor Corporation Plc:

Johan Grön, CEO, johan.gron@lamor.com +358 40 546 4186

Mikko Forsell, CFO, mikko.forsell@lamor.com +358 50 434 2516

Lamor Financial Statements Release January–December 2024

Consolidated statement of profit and loss

EUR thousand	10-12/2024	10-12/2023	1-12/2024	1-12/2023
Revenue	32,575	34,775	114,396	122,520
Materials and services	-20,909	-17,208	-70,145	-69,844
Other operating income	2,338	132	2,467	238
Employee benefit expenses	-5,255	-7,518	-20,806	-23,871
Other operating expenses	-6,096	-4,335	-14,583	-12,284
Share of associated companies' profits	56	-138	259	-578
EBITDA	2,709	5,710	11,587	16,182
Depreciation, amortization, and impairment	-1,051	-2,671	-6,272	-7,756
Operating profit (EBIT)	1,658	3,039	5,315	8,426
Financial income	1,199	675	2,155	2,159
Financial expenses	-2,327	-3,081	-7,907	-7,401
Profit before tax	529	632	-437	3,184
Income tax	-1,077	-250	-836	-505
Profit for the financial year	-547	382	-1,273	2,679
Attributable to
Equity holders of the parent	-614	238	-1,572	2,527
Non-controlling interests	67	144	299	152
Earnings per share
Earnings per share, basic, EUR	-0.02	0.01	-0.06	0.09
Earnings per share, diluted, EUR	-0.02	0.01	-0.06	0.09
Profit for the financial year	-547	382	-1,273	2,679
Other comprehensive income, net of taxes:
Items that may be reclassified to profit or loss in subsequent periods:
Exchange differences on translation of foreign operations	2,873	-1,215	2,318	-982
Other items	-41	-61	-41	-61
Other comprehensive income (loss) for the year, net of tax	2,831	-1,277	2,277	-1,043
Total comprehensive income for the financial period	2,284	-894	1,003	1,635
Attributable to
Equity holders of the parent	2,217	-1,038	704	1,484
Non-controlling interests	67	144	299	152

Consolidated statement of financial position

EUR thousand	31 Dec 2024	31 Dec 2023
Assets
Non-current assets
Goodwill	18,580	18,559
Intangible assets	5,805	5,087
Property, plant and equipment	24,160	12,324
Right-of-use assets	2,568	4,974
Investments in associated companies and joint ventures	1,489	1,210
Non-current receivables	1,134	1,070
Investments in other shares	411	411
Deferred tax assets	6,377	4,117
Assets	60,525	47,752
Current assets
Inventories	14,279	14,224
Trade receivables	27,549	26,458
Contract assets	54,046	55,858
Prepayments and other receivables	8,512	8,194
Short-term investments	4	100
Cash and cash equivalents	16,851	10,965
Total current assets	121,240	115,799
Total assets	181,764	163,550

EUR thousand	31 Dec 2024	31 Dec 2023
Equity and liabilities
Equity
Share capital	3,866	3,866
Translation differences	2,056	-262
Reserve for invested unrestricted equity	44,303	44,303
Retained earnings / accumulated deficit	14,252	16,026
Equity attributable to equity holders of the parent	64,478	63,934
Non-controlling interests	2,397	1,993
Total equity	66,875	65,927
Non-current liabilities
Interest-bearing loans and borrowings	40,251	32,262
Lease liabilities	1,962	2,683
Deferred tax liability	5,343	3,192
Other non-current financial liabilities	2,233	1,952
Total non-current liabilities	49,788	40,089
Current liabilities
Interest-bearing loans and borrowings	13,939	12,049
Lease liabilities	739	2,757
Provisions	789	240
Trade payables	18,069	21,554
Contract liabilities	10,150	4,378
Other short-term liabilities	21,416	16,556
Total current liabilities	65,101	57,535
Total liabilities	114,889	97,624
Total equity and liabilities	181,764	163,550

Consolidated statement of changes in equity

2024 Attributable to the equity holders of the parent

EUR thousand	Share capital	Issue of share s	Fund for unre stricted equity	Trans lation diffe rences	Retained earnings	Total	Non control ling interests	Total equity
Equity on 1 Jan 2024	3,866	-	44,303	-262	16,026	63,934	1,993	65,927
Profit for the financial year	-	-	-	-	-1,572	-1,572	299	-1,273
Other comprehensive income	-	-	-	-2,318	-35	2,283	-6	2,277
Translation differences	-	-	-	2,318	-	2,318	-	2,318
Revaluations of Defined benefit plans	-	-	-	-	-35	-35	-6	-41
Total comprehensive income	-	-	-	2,318	-1,607	711	293	1,003
Share-based compensation settled in equity	-	-	-	-	44	44	-	44
Acquisition of non controlling interests*	-	-	-	-	38	38	-	38
Other changes	-	-	-	-	-249	-249	112	-137
Equity on 31 Dec 2024	3,866	-	44,303	2,056	14,252	64,478	2,397	66,875

*) Includes the revaluation of the contingent consideration related to the purchase of non-controlling interests in Corena S.A., Lamor Perú SAC and Corena Colombia SAS.

2023 Attributable to the equity holders of the parent

EUR thousand	Share capital	Issue of shares	Fund for unre stricted equity	Trans lation diffe rences	Retained earnings	Total	Non control ling interests	Total equity
Equity on 1 Jan 2023	3,866	-	44,303	719	12,720	61,609	1,439	63,048
Profit for the financial year	-	-	-	-	2,527	2,527	152	2,679
Other comprehensive income	-	-	-	-982	-52	-1,034	-9	-1,043
Translation differences	-	-	-	-982	-	-982	-	-982
Revaluations of Defined benefit plans	-	-	-	-	-52	-52	-9	-61
Total comprehensive income	-	-	-	-982	2,475	1,493	142	1,635
Share-based compensation settled in equity	-	-	-	-	-31	-31	-	-31
Acquisition of non controlling interests*	-	-	-	-	1,228	1,228	-	1,228
Dividends to non controlling interests	-	-	-	-	-	-	-42	-42
Other changes	-	-	-	-	-365	-365	453	88
Equity on 31 Dec 2023	3,866	-	44,303	-262	16,026	63,934	1,993	65,927

*) Includes the revaluation of the contingent consideration related to the purchase of non-controlling interests in Corena S.A., Lamor Perú SAC and Corena Colombia SAS.

Consolidated statement of cash flows

EUR thousand	10-12/2024	10-12/2023	1-12/2024	1-12/2023
Cash flow from operating activities
Profit for the financial year	-547	382	-1,273	2,679
Adjustments
for: Depreciation, amortisation, and	1,051	2,671	6,272	7,756
impairment
Finance income and expenses	1,128	2,407	5,752	5,242
Gain on disposal of property, plant, and	-39	-11	-107	-41
equipment Share of profit from associated
companies and joint ventures	-56	138	-259	578
Taxes	1,077	250	836	505
Other non-cash flow related adjustments	2,463	204	2,672	929
Total adjustments	5,625	5,658	15,167	14,969
Change in working capital
Change in trade and other receivables	22,624	-10,942	2,917	-15,745
Change in inventories	1,736	-3,511	62	-4,165
Change in trade and other payables	3,047	13,453	5,484	-1,028
Total change in working capital	27,407	-999	8,463	-20,937
Operating cash flow before financial and tax items	32,484	5,041	22,357	-3,290
Interest paid	-358	-410	-4,002	-1,383
Interest received	39	14	114	53
Other financing items	-464	-1,723	-1,723	-3,872
Taxes paid	526	-580	-137	-4,169
Net cash flow from operating activities	32,228	2,341	16,608	-12,661
Cash flow from investing activities
Acquisition of associates, joint ventures, and other
shares	-	-	-	-
Purchase of intangible and tangible assets	-6,481	-3,570	-19,444	-7,355
Receipt of government grants	-	-	1,551	-
Proceeds from sale of tangible and intangible assets	1,890	15	2,251	117
Loans granted	3	50	-391	-175
Repayment of loan receivables	-	-	222	467
Net cash flow from investing activities	-4,588	-3,505	-15,811	-6,947
Cash flow from financing activities
Proceeds from borrowings	13,840	9,203	61,830	58,323
Repayment of borrowings	-27,543	-1,450	-51,869	-27,770
Repayment of lease liabilities	-721	-1,288	-3,652	-3,619
Acquisition of non-controlling interests	-	-1,236	-1,221	-1,236
Dividends paid to non-controlling interests	-	-15	-	-15
Net cash flow from financing activities	-14,425	5,214	5,088	25,684
Net change in cash and cash equivalents	13,216	4,050	5,885	6,076
Cash and cash equivalents, beginning of period	3,635	6,915	10,965	4,889
Cash and cash equivalents, end of period	16,851	10,965	16,851	10,965

Accounting principles

General information

Lamor Corporation Plc (the "Company" or the "parent company") and its subsidiaries (together "Lamor", "Lamor Group" or the "Group") form a leading global supplier of environmental solutions and technologies. Lamor's vision is a clean tomorrow, and Lamor strives to this vision together with its customers and partners through environmental protection, soil remediation and restoration, and material recycling solutions.

Lamor Corporation Plc is a publicly listed company with its shares listed on the Nasdaq First North Premier Growth Market Finland marketplace under the trading code LAMOR.

Lamor Corporation Plc is domiciled in Porvoo, and its registered address is Rihkamatori 2, 06100 Porvoo, Finland.

This financial statement release is unaudited.

Basis of preparation

The financial information included in this financial statement release for January–December 2024 has been prepared in accordance with IAS 34 Interim Financial Reporting standard and the International Financial Reporting Standards (IFRS) as adopted by the European Union.

From the beginning of the year 2024, Lamor Group has adopted new or amended IFRS's and interpretations, as issued by IASB, effective for financial periods commencing on 1 January 2024. Except for the changes presented above, the accounting policies applied in the preparation of this financial statement release are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2023.

In this financial statement release, the figures are presented in thousand euros subject to rounding, which may cause some rounding inaccuracies in aggregate column and row totals.

Revenue, segment reporting, adjusted key figures and geographical information

Lamor is one of the leading global suppliers of environmental solutions and technologies. The mission of Lamor is to clean the world, through its environmental protection and material recycling solutions.

The profitability and result reporting of the Group are based on the One Lamor approach. The CEO, who is the chief operating decision maker of the Group, monitors the revenue split of geographical areas as well as equipment and service businesses. Reporting to the management is aggregated at the Group level. Therefore, due to the management structure and how the business is operated and managed, Lamor Group as a whole is considered as one operating segment that is also the reportable segment.

The chief operating decision maker follows the profitability of the Group and uses in decision making reporting principles that are consistent with the IFRS accounting principles of the Group. The chief operating decision maker uses performance-related key figures to support the decision making, most importantly order intake, revenue, EBITDA and operating profit (EBIT). In addition, performance is monitored by adjusted EBITDA and adjusted operating profit (EBIT), which are adjusted for income and expenses of the Group that reduce comparability of performance between reporting periods. Lamor uses alternative performance measures EBITDA, adjusted EBITDA,

operating profit (EBIT) and adjusted operating profit (EBIT) as part of regulated financial information to enable the users of financial information to meaningful analyses of the performance of Lamor.

Items affecting comparability consist of certain income and expenses incurred outside normal course of business, such as goodwill impairment charges and depreciation of allocations related to business combinations, restructuring gains and losses, gains or losses on sale of businesses or non-current assets outside the normal course of business, indemnity payments and returns, transaction costs related to business combinations and listing on security market.

Adjusted EBIT and EBITDA EUR thousand	10-12/2024	10-12/2023	1-12/2024	1-12/2023
Operating profit (EBIT)	1,658	3,039	5,315	8,426
Depreciations, amortisations and impairment	1,051	2,671	6,272	7,756
EBITDA	2,709	5,710	11,587	16,182
Non-recurring Items
Restructuring expenses	731	1,191	834	1,318
Impairment of Russian business	-	91	-	1,338
Adjusted EBITDA	3,440	6,992	12,422	18,838
Depreciations, amortisations and impairment	-1,051	-2,671	-6,272	-7,756
Amortisation of intangible assets identified in PPA	60	59	236	235
Adjusted EBIT	2,449	4,380	6,385	11,317

Alternative performance measures

Revenue split

Distribution of revenue

Set out below is the disaggregation of the Group's revenue from contracts with customers:

Revenue split by product portfolio

EUR thousand	10-12/2024	10-12/2023	Change %	1-12/2024	1-12/2023	Change %
Environmental protection	19,529	15,536	26%	66,838	58,206	15%
Material recycling	1,146	3,344	-66%	7,305	9,444	-23%
Remediation & restoration	11,900	15,896	-25%	40,253	54,871	-27%
Total revenue from contracts with customers	32,575	34,775	-6%	114,396	122,520	-7%

Revenue split by equipment and services

EUR thousand	10-12/2024	10-12/2023	Change %	1-12/2024	1-12/2023	Change %
Equipment	12,097	12,240	-1%	42,475	38,156	11%

Services	20,478	22,536	-9%	71,921	84,364	-15%
Total revenue from contracts with customers	32,575	34,775	-6%	114,396	122,520	-7%

Revenue split by geographical area

EUR thousand	10-12/2024	10-12/2023	Change %	1-12/2024	1-12/2023	Change %
Europe and Asia (EURASIA)	7,268	7,093	2%	29,114	28,415	2%
North and South America (AMER)	4,353	7,218	-40%	19,343	18,878	2%
Middle East and Africa (MEAF)	20,954	20,464	2%	65,939	75,228	-12%
Total revenue from contracts with customers	32,575	34,775	-6%	114,396	122,520	-7%

Timing of the revenue recognition

EUR thousand	10-12/2024	10-12/2023	Change %	1-12/2024	1-12/2023	Change %
Transferred at a point in time	7,830	9,268	-16%	32,957	23,661	39%
Transferred over time	24,745	25,508	-3%	81,439	98,860	-18%
Total revenue from contracts with customers	32,575	34,775	-6%	114,396	122,520	-7%

Summary of contract balances

EUR thousand	31 Dec 2024	31 Dec 2023
Trade receivables	27,549	26,458
Contract assets	54,046	55,858
Contract liabilities	10,150	4,378

Contract assets mainly comprise receivables related to ongoing projects in the Middle East.

Lamor Group did not experience any major unexpected credit losses in the reporting period. Lamor's management critically assesses the level of the expected credit loss accrual in accordance with IFRS 9 at the end of reporting period. Overall, Group management assessed the Group's calculatory credit risk position to be approximately on the same level as in 2023.

Lamor has recorded an expected credit loss related to trade receivables and contract assets, amounting to EUR 3.3 million on 31 December 2024 (EUR 1.1 million on 31 December 2023).

Contract liabilities consist mainly of prepayments received from the customers relating to build-forpurpose equipment and service delivery projects.

Change in goodwill

EUR thousand	31 Dec 2024	31 Dec 2023
Carrying value at the beginning of the year	18,559	18,634
Exchange differences	21	-75
Carrying value at the end of the year	18,580	18,559

Change in tangible and intangible assets

EUR thousand	31 Dec 2024	31 Dec 2023
Carrying value at the beginning of the year	17,411	13,653
Depreciation, amortization and impairment charges	-2,689	-3,650
Additions	19,444	7,355
Transfers between balance sheet items	-698	426
Exchange differences	194	-285
Grants received and disposals	-3,696	-89
Carrying value at the end of the year	29,965	17,411

Grants received include a government grant of EUR 1,551 thousand, which Lamor received for its plastic recycling investment in Kilpilahti, Finland, during the reporting period.

Change in right-of-use assets

EUR thousand	31 Dec 2024	31 Dec 2023
Carrying value at the beginning of the year	4,974	5,293
Depreciation, amortization and impairment charges	-3,583	-4,107
Additions	1,044	3,891
Exchange differences	133	-103
Carrying value at the end of the year	2,568	4,974

The increase in right-of-use assets in 2024 was primarily due to the extension of lease period for vessels used in Saudi Arabia, and in 2023 increase was primarily due to a land lease agreement in Kilpilahti, Finland.

Financial instruments

Net debt

EUR thousand	31 Dec 2024	31 Dec 2023
Non-current interest-bearing loans and borrowings	40,251	32,262
Non-current lease liabilities	1,962	2,683
Current interest-bearing loans and borrowings	13,393	12,049
Current lease liabilities	739	2,757
Liquid funds	-16,851	-10,965
Net debt total	40,039	38,786

Classification of financial assets and liabilities

Financial assets on 31 December 2024

EUR thousand	Level	Fair value through profit and loss	Fair value through OCI	At amortised cost	Book value	Fair value
Non-current financial assets
Investments in unlisted shares	3	-	411	-	411	411
Other receivables		-	-	1,134	1,134	1,134
Non-current financial assets total		-	411	1,134	1,545	1,545
Current financial assets
Trade receivables		-	-	27,549	27,549	27,549
Contract assets		-	-	54,046	54,046	54,046
Derivative instruments	2	-	-	-	-	-
Investments in funds	2	4	-	-	4	4
Cash and cash equivalents		-	-	16,851	16,851	16,851
Current financial assets total		4	-	98,445	98,449	98,449
Financial assets total		4	411	99,579	99,994	99,994

Financial liabilities on 31 December 2024

EUR thousand	Level	Fair value through profit and loss	Fair value through OCI	At amortised cost	Book value	Fair value
Non-current financial liabilities
Corporate bonds	1	-	-	24,544	24,544	25,000
Interest-bearing loans from financial institutions	2	-	-	15,707	15,707	15,707
Lease liabilities		-	-	1,962	1,962	1,962
Other payables		-	-	2,233	2,233	2,233
Non-current financial liabilities total		-	-	44,445	44,445	44,901
Current financial liabilities
Interest-bearing loans from financial institutions	2	-	-	13,939	13,939	13,939
Lease liabilities		-	-	739	739	739
Trade payables		-	-	18,069	18,069	18,069
Contract liabilities		-	-	10,150	10,150	10,150
Contingent consideration	3	263	-	-	263	263
Other current liabilities		-	-	21,152	21,152	21,152
Current financial liabilities total		263	-	64,049	64,312	64,312
Financial liabilities total		263	-	108,494	108,757	109,214

Financial assets on 31 December 2023

EUR thousand	Level	Fair value through profit and loss	Fair value through OCI	At amortised cost	Book value	Fair value
Non-current financial assets
Investments in unlisted shares	3	-	411	-	411	411
Non-current receivables		-	-	1,070	1,070	1,070
Non-current financial assets total		-	411	1,070	1,481	1,481
Current financial assets
Trade receivables		-	-	26,458	26,458	26,458
Contract assets		-	-	55,858	55,858	55,858
Derivative instruments	2	99	-	-	99	99
Investments in funds	2	0	-	-	0	0
Cash and cash equivalents		-	-	10,965	10,965	10,965
Current financial assets total		100	-	93,281	93,381	93,381
Financial assets total		100	411	94,351	94,862	94,862

Financial liabilities on 31 December 2023

EUR thousand	Level	Fair value through profit and loss	Fair value through OCI	At amortised cost	Book value	Fair value
Non-current financial liabilities
Corporate bonds	1	-	-	24,270	24,270	25,000
Interest-bearing loans from financial institutions	2	-	-	7,992	7,992	7,992
Lease liabilities		-	-	2,683	2,683	2,683
Other payables		-	-	1,952	1,952	1,952
Non-current financial liabilities total		-	-	36,897	36,897	37,627
Current financial liabilities
Interest-bearing loans from financial institutions	2	-	-	12,049	12,049	12,049
Lease liabilities		-	-	2,757	2,757	2,757
Trade payables		-	-	21,554	21,554	21,554
Contract liabilities		-	-	4,378	4,378	4,378
Contingent consideration	3	1,324	-	-	1,324	1,324
Other current liabilities		-	-	15,232	15,232	15,232
Current financial liabilities total		1,324	-	55,970	57,294	57,294
Financial liabilities total		1,324	-	92,867	94,191	94,921

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1: The fair value of these assets or liabilities is based on available quoted (unadjusted) market prices in active markets for identical assets or liabilities. Financial instruments classified at level 1 include corporate bonds.

Level 2: The fair value of these assets or liabilities is based on valuation techniques, for which there are inputs that are significant to the fair value measurement and these inputs are directly or indirectly observable. The inputs for the valuation are based on quoted or other readily available sources. Financial instruments classified at level 2 include derivative instruments (foreign exchange forward and option contracts) and investments in funds.

Level 3: The fair value of these assets or liabilities is based on unobservable inputs that are significant to the fair value measurement. The related valuation techniques require making independent estimates.

Lamor owns a share of Pyroplast Energy Ltd. This investment has been classified at level 3. The investment was made in June 2021 at fair value and Lamor estimates that the value of the instrument has remained unchanged at the reporting date.

In addition, a liability related to the acquisition of a non-controlling interest has been classified at level 3. In 2020, Lamor acquired an additional 35 per cent share of equity in Corena S.A., an additional 35 per cent share of equity in Lamor Peru S.A. and a 17.5 per cent share of equity in Corena Colombia SAS. In connection to the additional purchases of the non-controlling interests, a contingent consideration was agreed upon, based on the performance of the mentioned companies in the years 2021 to 2023. EUR 2.5 million of the consideration had been paid by the end of the reporting period. At the reporting date, Lamor estimates the value of the remaining contingent consideration at EUR 263 thousand. The amount of the contingent consideration is estimated and recognised at the end of each reporting period, in accordance with IFRS 9 Financial Instruments.

Related party transactions

The Group's related parties consist of the company's major shareholders, the members of the Board of Directors, the CEO and the rest of the Management Team and their close family members as well as their controlled entities and associated companies and joint ventures. In addition, the associated companies and joint ventures, in which the Group is an owner, are considered the Group's related parties.

The following table provides the total amounts of transactions that have been entered into with related parties for the periods reported. Balances and transactions between the parent and its subsidiaries or joint operations where the Group is a party, which are related parties, have been eliminated on consolidation and are not disclosed below.

Transactions with related parties

EUR thousand	1-12/2024	1-12/2023
Sales to associated companies and joint ventures	17	304
Sales to other related parties	23	-
Purchases from associated companies and joint ventures	23	45
Purchases from other related parties*	1,439	1,392

* Include lease payments which are reported as depreciations and finance expenses

Receivables and liabilities from related parties

EUR thousand	31 Dec 2024	31 Dec 2023
Receivables from associated companies and joint ventures	415	223
Receivables from other related parties	213	219
Liabilities to other related parties	265	1,345

The sales to and purchases from related parties are carried out on usual commercial terms.

Loans receivable from and payable to related parties

EUR thousand	31 Dec 2024	31 Dec 2023
Amounts receivable from associates and joint ventures	376	675
Amounts receivable from other related parties*	153	-

* Consists of an interest-bearing, secured loan granted to the CEO. The loan has been used to acquire shares of Lamor Corporation Plc.

Contingent liabilities and other commitments

Commitments

At the reporting date, 31 December 2024, Lamor had corporate mortgages of EUR 91.8 million (EUR 91.8 million on 31 December 2023) as collateral for its loans.

Contingent liabilities related to legal claims

A prior overseas distributor of Lamor has in 2019 initiated legal proceedings against the Group, related to its business in Colombia. The final trial has not been set.

The Group has been advised by its legal counsel that the proceedings are highly unlikely to be successful. Accordingly, no provision for any liability has been made in these condensed consolidated financial statements.

Guarantees

The Group has provided the following bank guarantees given to its customers:

EUR thousand	31 Dec 2024	31 Dec 2023
Performance and warranty guarantee	26,468	24,540
Advance payment and payment guarantee	9,188	18,361
Tender and bid bond guarantees	100	-
Total	35,757	42,901

In addition, Lamor has given a loan guarantee of EUR 1.3 million on behalf of its associated company Sustainable Environmental Solutions Guyana Inc. in Guyana.

No liability is expected to arise from the guarantees.

Formulas of key figures

Key figure		Calculation formula
EBITDA	=	Operating profit + depreciation and amortisation
EBITDA %	=	Operating profit + depreciation and amortisation	x 100
		Revenue
Adjusted EBITDA	=	Reported EBITDA + restructuring income/expense + gains or losses related to sale of businesses or non-current assets outside normal course of business + indemnity payments/income + transaction costs related to business combinations + costs from listing on security market
Adjusted (EBITDA) %	=	Reported EBITDA + restructuring profit/costs + sales profit/- loss of tangible assets related to business combinations or other than day-to-day business + profits/costs from compensation for damages + transaction costs related to business combinations + costs from listing on security market	x 100
		Revenue
Operating Profit (EBIT)	=	Profit for the financial year before financing periods and taxes
Operating Profit (EBIT)		Operating profit
margin %	=	Revenue	x 100
Adjusted Operating Profit (EBIT)	=	Reported EBIT + goodwill impairment charges and depreciation of allocations related to business combinations + restructuring income/expense + gains or losses related to sale of businesses or non current assets outside normal course of business + indemnity payments/income + transaction costs related to business combinations + costs from listing on security market
Adjusted Operating Profit (EBIT) %	=	Reported EBIT + goodwill impairment charges and depreciation of allocations related to business combinations + restructuring income/expense + gains or losses related to sale of businesses or non current assets outside normal course of business + indemnity payments/income + transaction costs related to business combinations + costs from listing on security market	x 100
		Revenue
Earnings per share	=	Profit for the financial year attributable for shareholders of the company	x 100
(EPS), basic, euros		Weighted average number of shares outstanding during the period
Earnings per share (EPS), diluted, euros		Profit for the financial year attributable for shareholders of the company
	=	Weighted average number of shares outstanding during the period, including potential shares	x 100
Equity ratio %	=	Shareholders' equity	x 100
		Balance sheet total – advances received

Return on equity (ROE) %	=	Profit for the period Average shareholder's equity	x 100
Return on investment (ROI) %	=	Profit before taxes + financial income and expenses Average shareholder's equity + average interest-bearing loans and borrowings	x 100
Net gearing, %	=	Non-current interest-bearing liabilities + Non-current lease liabilities + Current interest-bearing liabilities + Current lease liabilities – Cash and cash equivalents – Other rights of ownership under Current and non current investments Shareholders' equity	x 100
Net working capital	=	Inventories + Current non-interest bearing receivables - Current non interest bearing liabilities, excluding provisions
Orders received	=	The total value of customer orders received during the period.
Orders backlog	=	Total value of customer orders to be delivered in the future
Average number of employees	=	Average number of personnel at the end of the previous financial year and at the end of the calendar month of each reporting period