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Nilfisk Holding Annual Report 2025

Feb 19, 2026

3408_rns_2026-02-19_3fc28fec-5286-45cd-89cf-f4d2ecd4ef2d.pdf

Annual Report

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Management Report Financial Report

MR Management Review SS Sustainability Statements FS Financial Statements

37 General information

48 Environment

69 Social

84 Governance

85 G1 Business conduct

89 Additional information

103 Consolidated financial statements

151 Parent financial statements

157 Statements & reports

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About the report

Nilfisk's Annual Report 2025 is the second integrated report prepared in accordance with IFRS Accounting Standards and the Corporate Sustainability Reporting Directive (CSRD). It reflects a commitment to transparency and accountability through recognized standards, ensuring that financial report ing and sustainability disclosures provide a comprehensive and accurate representation of Nilfisk's performance.

The Annual Report 2025 consists of the following sections:

  • Management Review
  • Sustainability Statements
  • Financial Statements

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

The 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 onhttps://investor.nilfisk.com.

Takeover offer from Freudenberg

On December 11, 2025, Nilfisk Holding A/S published an announcement regarding Nilfisk entering into an announcement agreement with Freudenberg Home and Cleaning Solutions GmbH, a part of the German familyowned Freudenberg group, pursuant to which Freudenberg will make an all-cash voluntary recommended public takeover offer to acquire all of the issued and outstanding shares (except for treasury shares and shares held by the Offeror) in Nilfisk at a price of DKK 140 per share.

As of the publication date of this report, the offer document has been approved by the Danish Financial Supervisory Authority pursuant to Sections 4(2) and 21 of Executive Order no. 614 of 2 June 2025 on Takeover Offers (the Danish Takeover Order) and is subject to shareholder review and regulatory processes.

More information is available on https://investor.nilfisk.com.

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2025 in brief

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Letter from the Chair and the CEO At a glance Financial highlights 5-year consolidated financial highlights Outlook for 2026 How we operate Operations and R&D

LETTER

A year of focused execution

2025 was a year of disciplined execution and clear choices. From the outset, we stayed focused on delivering on the commitments in our strategic roadmap, despite operating in a market environment marked by macroeconomic uncertainty, external disruptions, and uneven regional conditions.

Against this backdrop, we delivered on the commitments we set at the beginning of the year in our strategic roadmap: Improve competitive position in North America, Enhance the operating model, and Execute structural efficiency improvements. While our overall financial performance did not fully meet our expectations, the progress we made was real and tangible.

We maintained a disciplined focus on efficiency, cost control, and prioritization, translating strategy into concrete actions across the organization, every day. This approach allowed us to manage differing regional conditions effectively through focused, improvement-driven execution.

Throughout the year, our teams remained deeply committed to serving our customers, improving how we operate, and running the business with discipline and clear ownership.

As a result, Nilfisk emerged from the year more robust, more competitive, and better positioned for the future.

Financial performance and operational execution

Despite external headwinds, we delivered a resilient financial performance that reflects the underlying strength of the business, though with notable regional variation in performance. EMEA and APAC delivered consistent performance, driven by strong commercial execution and market share gains. In the Americas, performance was influenced by a negative backlog effect. Adjusting for the backlog release last year, underlying growth was above GDP growth, reflecting measurable progress. Performance was also impacted by the more volatile demand in the Consumer Business, which was offset by continued progress in our other business areas.

Profitability remained robust reflecting disciplined pricing, cost control, and targeted investments, as well as the efforts of teams across Nilfisk to structurally improve our cost base and financial resilience.

While restructuring initiatives and strategic decisions led to significant special items, these efforts reflect our commitment to addressing structural challenges decisively, and the resulting improvements in our cost structure have strengthened the foundation of the business.

Executing our strategic roadmap to build a stronger Nilfisk

Throughout 2025, we continued to execute our strategic roadmap with clear priorities, including customer focus, product development, operational improvements, and strengthening our platform for long-term value creation.

Customer engagement remained central to our operating model, and we deepened that engagement by expanding into new customer verticals. To address our customers' unique behaviors and needs, we have developed new high-level groupings to better understand these differences and to more effectively tailor our value proposition and services to distinct customer requirements.

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2025 in brief

Our financial results Our governance

Throughout 2025, we continued to execute our strategic roadmap with clear priorities, including customer focus, product development, operational improvements, and strengthening our platform for long-term value creation.

Jon Sintorn, CEO

Following a year of significant product development activity in 2024, 2025 was focused on execution. Efforts centered on rolling out and scaling recently introduced products, driven by close cooperation between our product, sales, service, and operation teams. In 2025 we also introduced several new products, including an entirely new range of next-generation vacuum cleaners, the VP series. This series offers some of our best-selling vacuums with recycled plastics. We also introduced the CS7500 compact sweeper-scrubber, which was developed based on extensive customer insights, and designed to meet diverse needs.

As a global company serving customers in more than 100 countries, we continued to simplify and strengthen our operational footprint. During 2025, we consolidated our two Hungarian factories into one site in Nagykanizsa and decided to close the production facility Brooklyn Park in the US, relocating remaining production to Querétaro, Mexico to enhance our ability in the large machine category. Following these changes, we now operate five production sites across three continents. This has improved utilization, productivity, and speed to market while reducing inventory levels. In parallel, we strengthened manufacturing and sourcing resilience in response to geopolitical volatility.

As we continue to sharpen our focus and strengthen the company for long-term growth, we took deliberate choices during the year about where to invest and where to step back. This includes phasing out selected development projects and inventory items that will not be part of our future product portfolio. While these actions led to one-off costs, they mark significant progress towards a more focused and resilient Nilfisk.

Structural efficiency and a more competitive cost base One of our key priorities in 2025 was to deliver lasting structural efficiency improvements and a more competitive

cost base. We realized targeted cost savings from previously announced restructuring programs and production consolidations. These initiatives are now clearly visible in our cost base, with lower operating expenses and a reduced FTE footprint.

In addition, we strengthened working capital management through strategic actions on inventory and receivables, supporting improved cash generation and financial resilience at Nilfisk. These actions were fully aligned with the commitments we communicated and demonstrate our ability to deliver consistently with financial discipline.

Nilfisk emerged from the year more robust, more competitive, and better positioned for the future.

Jon Sintorn, CEO

As planned, we also took decisive portfolio actions. In October, we finalized the divestment of our US high-pressure washer business to a local manufacturer with strong regional roots. This divestment allows Nilfisk to sharpen its focus on core businesses and strategic priorities, simplifies the portfolio, improve profitability, and going forward positively impacts our emissions footprint, while ensuring continuity for customers and employees.

Sustainability driving value creation

In 2025, we continued to embed sustainability into how we work and how we create value for our customers. We reduced our greenhouse gas emissions across scopes 1, 2 and 3, and strengthened our climate ambitions by updating our

science-based emissions targets, committing to Net-Zero by 2040. Our strong sustainability performance was recognized externally, as we earned an EcoVadis Gold Medal for the fourth consecutive year and improved our CDP climate score from A- to A, the highest possible rating.

Sustainability considerations remained integrated across product development and operations, supporting customer value creation and addressing the growing demand for efficient and sustainable cleaning solutions. Customer inquiries related to sustainability more than doubled in 2025, confirming that our long-standing commitment in this area remains a competitive strength and is increasingly important to our customers.

Maintaining stability and focus

In December 2025, we announced a recommended voluntary takeover offer from German family-owned company Freudenberg. The offer is, as of the publication date of this report, subject to shareholder review and regulatory processes. Our focus remains on running the business as usual while these processes unfold.

We would like to thank our customers for their continued trust, our shareholders for their engagement, and our employees for their professionalism, dedication, and commitment throughout the year. Their contributions have been central to a year of focused execution.

Peter Nilsson Chair

Jon Sintorn

CEO

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Progress on strategic roadmap during 2025

At the beginning of the year, we set clear priorities to strengthen performance and resilience. By executing on these priorities during 2025, we have strengthened Nilfisk's operational foundation and created a solid platform for continued progress in 2026.

Improve competitive position in Enhance the Execute structural
North America operating model efficiency improvements
Progress
in 2025		 Improved the growth profile in North America
Restructured the operational footprint, including
consolidation of manufacturing in Mexico
Strengthened US commercial execution, increasing sales
focus and delivery performance
Reduced backlog effects and improved delivery
performance over the year
Advanced portfolio and operational actions to address
continued soft demand		 Implemented a simpler operating model with clear
ownership and accountability
Strengthened regional ownership and execution across
functions
Shifted decision-making closer to customers through
decentralization
Improved the ability to tailor value propositions and
manage performance locally		 Delivered targeted overhead cost savings and workforce
reductions
Optimized the production footprint through consolidations
in Hungary and Mexico
Advanced supply chain optimization to improve resilience
and efficiency
Completed the divestment of the US high-pressure
washer business
Strengthened working capital discipline and cash
generation

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Regions

Letter from the Chair and the CEO At a glance Financial highlights 5-year consolidated financial highlights Outlook for 2026 How we operate Operations and R&D

Key markets

Global presence

We are a leading global provider of professional cleaning solutions

996.3 mEUR 4,500

EBITDA margin before special items AT A GLANCE Total revenue 2025 Employees

13.0 %

Approximately

Gender split

Distribution of employees

Founded in 1906

It was in 1906 that Peder Andersen Fisker established Nilfisk, inspired by his love of knowledge and ambition to build a company that made the best electrical motor. In 1910, Fisker's invention of the C1, the first electronic vacuum cleaner in Europe, made the defining moment. Since then, we have been committed to delivering innovative cleaning solutions and growing our business to lead the industry.

Countries

Our products and services are sold in more than 100 countries across the globe.

Sales companies

We have sales companies in more than 40 countries around the world.

100+ 40+ 98th percentile

Gold EcoVadis ranking

4th consecutive year of EcoVadis Gold. Nilfisk placed in the 98th percentile of all companies reporting to EcoVadis.

37%

Reduction in absolute emissions

Scope 3 greenhouse gas emissions from the use of sold products and purchased goods and services, based on 2021.

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2025 in brief

Letter from the Chair and the CEO At a glance Financial highlights 5-year consolidated financial highlights Outlook for 2026 How we operate Operations and R&D

Our financial results Our governance

AT A GLANCE

The customers we serve

The need for cleaning is universal, and the effect of clean is valuable to our customers everywhere. Nilfisk serves customers around the world, targeting strategic customer segments and key applications.

Agriculture

Automotive

Building & Construction

Contract cleaners

Education

Food & Beverage

Healthcare

Consumer

Hospitality

Iron & Metal

Manufacturing

Offices & Public buildings

Pharma

Retail

Warehousing & Logistics

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.

Revenue by products and services

Floorcare

Scrubber dryers, sweepers, combination machines, carpet extractors, burnishers.

20%

Commercial vacuum cleaners, wet & dry vacuum cleaners, industrial solutions, vacuum cleaners for the consumer market.

11%

32%

High-pressure washers Aftermarket

Service, parts, accessories, and consumables across all four business segments: Professional, Service, Specialty, and Consumer.

Vacuum cleaners

Professional pressure washers that use hot/ cold water, stationary pressure washers, gasoline/diesel driven pressure washers, highpressure washers for the consumer market.

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2025 in brief

Our financial results Our governance

Financial highlights 2025

Revenue

996.3 mEUR

Revenue came to 996.3 mEUR from 1,027.9 mEUR in 2024, corresponding to negative reported growth of 3.1%. Foreign exchange rates had a negative impact of -2.2%, while -1.1% was driven by the divestment of the US high-pressure washer business.

EBITDA before special items (bsi)

129.2 mEUR

EBITDA bsi was down by 10.6 mEUR from 2024, and reflects a lower gross profit. This was partly offset by reductions in overhead costs, as a result of cost reduction programs.

Organic revenue growth EBITDA margin bsi

%

Organic growth for the total business was 0.2%, in line with the revised outlook provided on December 11, 2025. This was driven by Service and Specialty, partly offset by Professional and Consumer. Organic growth was negatively impacted by a significant backlog release in H1 2024. Adjusted for the backlog release, the underlying organic growth was positive by 3.2%.

0.2 13.0 %

The EBITDA margin before special items came to 13.0%, down by 0.6 percentage point compared to 2024. This was in line with the latest outlook announced on December 11, 2025.

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Letter from the Chair and the CEO At a glance Financial highlights 5-year consolidated financial highlights Outlook for 2026 How we operate Operations and R&D

2025 in brief

5-year consolidated financial highlights

EUR million 2025 2024 2023 2022 2021
5-year Income statement
Revenue 996.3 1,027.9 1,033.6 1,069.5 994.9
EBITDA before special items1 129.2 139.8 132.4 140.8 144.3
consolidated EBITDA1 55.9 133.4 123.1 133.3 139.9
Operating profit (EBIT) before special items1 67.4 75.9 71.1 79.5 84.1
Operating profit (EBIT)1 -25.7 69.5 61.2 69.6 79.7
financial Special items, net -93.1 -6.4 -9.9 -9.9 -4.4
Financial items, net -23.3 -22.2 -14.7 -17.0 -11.6
highlights Profit (loss) for the year -36.7 35.4 35.3 40.6 51.0
Cash flow
Cash flow from operating activities 28.8 51.9 143.0 82.0 74.7
Cash flow from investing activities -44.2 -44.2 -27.8 -27.5 -16.2
– hereof investments in property, plant and equipment -9.1 -13.9 -8.6 -10.5 -5.8
– hereof investments in intangible assets -21.7 -32.2 -22.4 -15.9 -11.7
Free cash flow -15.4 7.7 115.2 54.5 58.5
Statement of financial position
Total assets 879.2 894.7 814.0 863.4 841.2
Group equity 264.6 319.4 275.0 260.7 207.7
Working capital 179.1 179.0 139.6 202.1 175.7
Net interest-bearing debt 307.3 270.1 252.2 324.7 338.5
Capital employed 571.9 589.5 527.2 585.4 546.2
Financial ratios and employees
Organic growth 0.2% 1.2% -0.3% 4.9% 20.7%
Gross margin 42.0% 42.2% 40.9% 39.5% 40.5%
EBITDA margin before special items1 13.0% 13.6% 12.8% 13.2% 14.5%
EBITDA margin1 5.6% 13.0% 11.9% 12.5% 14.1%
Operating profit (EBIT) margin before special items1 6.8% 7.4% 6.9% 7.4% 8.5%
Operating profit (EBIT) margin1 -2.6% 6.8% 5.9% 6.5% 8.0%
Financial gearing 2.4x 1.9x 1.9x 2.3x 2.3x
Overhead costs ratio 35.8% 35.2% 34.0% 32.0% 32.0%
CAPEX ratio 3.1% 4.5% 3.0% 2.5% 1.8%
Working capital ratio 20.3% 16.9% 17.8% 21.6% 15.4%
Return on Capital Employed (RoCE) 11.3% 13.6% 12.7% 13.4% 15.8%
Basic earnings (loss) per share (EUR) -1.35 1.31 1.30 1.50 1.88
Diluted earnings (loss) per share (EUR) -1.35 1.31 1.30 1.50 1.88
Read more details in the section Financial definitions on page 149. Number of full-time employees, end of period 4,388 4,787 4,698 4,655 4,887

1 In 2025, Share of profit from associates has been reclassified to be included within operating profit (EBIT). 2024 key figures have been restated, however the related key figures from 2021-2023 have not been restated. Read more in note 1.1 regarding changes made in the presentation of the income statement.

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2025 in brief

Our financial results Our governance

Outlook for 2026

Organic revenue growth is expected to be between -1% and 2% and the EBIT margin before special items is expected to be in the range of 7% to 9%.

The organic growth is expected to be driven by diverse performance across business segments and regions. The EBIT margin before special items is expected to be driven by an increased focus on profitability across the business as well as tariffs being offset with supply chain activities.

Potential trade barriers continue to present additional uncertainty for Nilfisk. The financial outlook for 2026 is based on several assumptions including:

  • Stable economic climate
  • Trade wars do not intensify and/or lead to a recession

Organic revenue growth

-1% 2%

EBIT margin before special items

7% 9%

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.

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How we operate

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Letter from the Chair and the CEO At a glance Financial highlights 5-year consolidated financial highlights Outlook for 2026 How we operate Operations and R&D

2025 in brief

Our financial results Our governance

Operations and R&D

At Nilfisk, innovation and operational excellence go hand in hand. By combining advanced R&D with a resilient global supply chain, we deliver high-quality cleaning solutions efficiently and sustainably while meeting customer needs.

Global production and sourcing

Nilfisk has five production sites on three continents that seek to maximize utilization and improve productivity while limiting costs. Together with our regional distribution centers, this strengthens Nilfisk's speed to market, improves operational efficiency, and lowers inventories. In manufacturing and sourcing, we continuously take actions to build greater resilience toward geopolitical turbulence and to focus on our GHG emissions reductions.

Distribution

Nilfisk's products are primarily shipped from five distribution centers to customers. The aim is to further optimize the delivery times to customers as required by different customer segments. Nilfisk uses sea freight for intercontinental logistics and trucks for road logistics, seeking the most sustainable solution.

R&D

Nilfisk's heritage is rooted in designing safe, efficient, and durable products driven by customer-centric innovation. By embedding sustainability into product design, we deliver cleaning solutions that use fewer resources, last longer, and help customers cut costs while reducing environmental impact.

Our R&D work covers a full range of applications, including floorcare, vacuum cleaners, pressure washers, industrial vacuum solutions, and consumer products, as well as the development of advanced technology and software. Nilfisk's development model enables us to develop both manual and autonomous cleaning machines tailored to the diverse needs of the industries we serve, and our efforts are validated by ISO-certified management systems.

5 Production sites

Querétaro (Mexico) Nagykanizsa (Hungary) Aalborg (Denmark) Zocca (Italy) Dongguan (China)

  • ISO 9001 certifications
  • ISO 14001 certifications
  • ISO 45001 certifications ISO 50001 certifications

5

Distribution centers

Bentonville (AR, US) Morgantown (PA, US) Ghent (Belgium) Horsens (Denmark) Shanghai (China)

9

Product Management and R&D locations

Hadsund (Denmark)

Zocca (Italy) Piacenza (Italy)

Dongguan (China)

Suzhou (China)

Nagykanizsa (Hungary)

Querétaro (Mexico) Brooklyn Park (MN, US)

Aalborg (Denmark)

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Our financial results

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Financial review

EUR million 2025 2024
Revenue 996.3 1,027.9
Gross profit 418.7 433.9
Overhead costs 356.6 362.0
EBITDA before special items 129.2 139.8
Profit (loss) for the period -36.7 35.4
Financial ratios:
Organic growth 0.2% 1.2%
Gross margin 42.0% 42.2%
EBITDA margin before special items 13.0% 13.6%
Overhead costs ratio 35.8% 35.2%
CAPEX ratio 3.1% 4.5%

Revenue

For 2025, total revenue amounted to 996.3 mFUR. corresponding to organic growth of 0.2%, driven by Service and Specialty, partly offset by Professional and Consumer. Consequently, organic growth for 2025 was in line with the revised outlook provided on December 11, 2025. The 2025 organic growth was negatively impacted by a significant backlog release in the US in H1 2024. Adjusted for the backlog release, the underlying organic growth was positive by 3.2%.

The total reported growth was negative at 3.1%, as foreign exchange rates had a negative impact of 2.2%, mainly due to the depreciation of TRY, USD, and CAD compared to the same period last year. Further, -1.1% was driven by a decrease in revenue in the US high-pressure washer business, which was divested in October, 2025.

Revenue by segment

Revenue in the Professional Business amounted to 558.1 mEUR in 2025, corresponding to a negative organic growth of 0.7%. EMEA and APAC incurred positive organic growth mainly driven by Floorcare. This was offset by continuing soft order intake in Americas, mainly within Floorcare.

The Service Business revenue ended at 296.1 mEUR in 2025, corresponding to moderate organic growth of 1.7%. This progress was driven by moderate growth in EMEA and Americas, partly offset by negative growth in APAC.

Revenue in the Specialty Business came to 65.7 mEUR in 2025, equivalent to organic growth of 3.0%, driven by strong growth in Americas. Solid growth in APAC also contributed, with momentum in IVS. EMEA saw a slight organic growth compared to a strong 2024.

In 2025, the Consumer Business delivered negative organic growth of 1.0% and revenue amounted to 76.4 mEUR. The negative growth was a result of decline in market demand as volume declined for both vacuum cleaners and highpressure washers across most European markets compared to 2024. This was partly offset by an increase in market share in five out of nine markets including Denmark, Spain, The Netherlands, France, and Germany.

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Revenue by region

In 2025, revenue in the EMEA region amounted to 620.6 mEUR, corresponding to moderate organic growth of 2.3%. Growth was supported by the Professional, Service, and Specialty business segments, partly offset by negative growth in the Consumer Business. Excluding Consumer, EMEA organic growth was 2.7% compared to positive organic growth of 4.1% in 2024. Solid growth in the Professional Business was supported by growth in Floorcare, Highpressure washers and Vacuum cleaners, partly offset by Private Label. The Service Business recorded moderate. growth driven by service contract revenue from several markets, mainly Türkiye, UK, and Spain, while growth in the Specialty Business was limited. Price management remained strong across the region, where key markets delivered positive organic growth.

For the Americas region, revenue amounted to 301.3 mEUR in 2025, corresponding to negative organic growth of 4.9% compared to negative organic growth in 2024 of 4.3%. The US Professional Business continued to be impacted by a negative backlog effect and a continuing soft order intake. However,

price management mitigated the increase in tariffs, and higher sales activity continued to support the performance in the Americas region positively.

2025

For the APAC region revenue amounted to 74.4 mEUR in 2025, corresponding to solid organic growth of 3.9% compared to negative organic growth of 8.0% in 2024. The development was driven by both the Professional Business and the Specialty Business, supported by large orders across markets. The growth was partly offset by negative organic growth in the Service Business.

Gross margin

The gross margin was 42.0% in 2025, compared to 42.2% in 2024. The 2025 margin was negatively impacted by elevated tariffs from China to the US and softer demand, which were partly offset by a favorable price impact combined with optimization of production. Adjusted for the net impact from additional tariffs, the gross margin was 42.5%.

The gross margin for the Professional Business increased from 40.9% to 41.7% in 2025. The increase was driven by

factory consolidations in Americas and EMEA, supported by price increases made to successfully offset the impact from elevated tariffs, as well as a favorable channel and customer. mix in EMEA. The increase was partly offset due to higher US tariffs and product mix in APAC, where the gross margin declined, driven by a high number of larger deals in 2025.

The Service Business gross margin was 41.1% in 2025 compared to 44.1% in 2024, driven by an unfavorable product mix. This was also the driver for the Specialty Business gross margin that came to 50.8% in 2025 compared to 51.2% in 2024.

For 2025, the gross margin for the Consumer Business amounted to 40.1% compared to 37.3% for 2024, driven by favorable channel mix with growth in online sales.

Overhead costs and ratio

Overhead costs in 2025 decreased by 5.4 mEUR compared to 2024, totaling 356.6 mEUR. The decrease was a result of the continued cost reduction programs starting to deliver measurable results. However, the decrease was partly offset by investment in R&D activities, focused on updating the product portfolio.

In 2025, Nilfisk executed additional cost reduction initiatives in administrative functions, restructuring of R&D, and production in the US. In R&D, the balance of resources and locations to support the product portfolio strategy was adjusted. In addition, the consolidation of production facilities from the US to Mexico continued to increase efficiency and profitability.

The overhead cost reductions are in line with the strategic initiative to reduce overhead spending in the administrative functions and increase investments in customer-facing activities. The overhead cost ratio came to 35.8% in 2025, an increase of 0.6 percentage point compared to 2024, due to

FUD: III: 2005 0004
EUR million 2025 2024
Total R&D spend 36.4 38.4
Expensed in the P&L 19.8 17.6
Capitalized 16.6 20.8
R&D ratio (% of revenue) 3.7% 3.7%
Expensed R&D spend 19.8 17.6
Amortization, depreciation,
and impairment 12.9 11.1
Total R&D expenses 32.7 28.7

lower revenue. The overhead cost in 04 2025 decreased by 11.8% compared to 01 in 2025.

Total R&D spend in 2025 decreased by 2.0 mEUR, compared to 2024, and came to 36.4 mEUR, corresponding to 3.7% of revenue, equivalent to 2024. Of the total R&D spend of 36.4 mEUR, 19.8 mEUR was recognized as an expense in the income statement, while 16.6 mEUR was capitalized. Total reported R&D costs for 2025 came to 32.7 mEUR including amortization, depreciation, and impairment of 12.9 mEUR.

Sales and distribution costs decreased by 2.8 mEUR to 256.6 mEUR, mainly driven by foreign exchange rates.

Administration costs for 2025 decreased 9.5 mEUR, to 66.7 mEUR, driven by the cost reduction programs.

Other operating income and expenses net for 2025 came to an expense of 0.6 mEUR compared to an income of 2.3 mEUR in 2024. The development was a combination of higher had debt losses due to increased overdue trade receivables in 2025, whereas 2024 was positively impacted from the revision of provision for expected credit losses.

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EBITDA before special items and EBITDA

For 2025, EBITDA before special items came to 129.2 mEUR compared to 139.8 mEUR in 2024, corresponding to an EBITDA margin before special items of 13.0%, down by 0.6 percentage point compared to 2024. The EBITDA margin before special items is in line with the outlook for 2025 provided on December 11, 2025 of an EBITDA margin before special items of 13% to 14%. Adjusted for the net impact from additional tariffs, the EBITDA bsi margin was 13.5%. In 2025, the share of profit from associates has been reclassified to operating profit, positively impacting EBITDA before special items. Read more in Note 1 in the financial statements.

For 2025, EBITDA amounted to 55.9 mEUR, compared to 133.4 mEUR in 2024. This corresponded to an EBITDA margin of 5.6%, down from 13.0% in 2024, driven by a higher level of special items for 2025 compared to 2024.

Operating profit (EBIT) before special items and operating profit (EBIT)

For 2025, operating profit before special items amounted to 67.4 mEUR, down from 75.9 mEUR in 2024. This corresponded to an operating profit margin before special items of 6.8% compared to 7.4% for 2024.

For 2025, operating profit amounted to a loss of 25.7 mEUR, mainly due to special items, compared to a profit of 69.5 mEUR for 2024. This corresponded to a negative operating profit margin of 2.6%, compared to a positive margin of 6.8% in 2024.

Special items

Special items in 2025 amounted to 93.1 mEUR compared to 6.4 mEUR in 2024, primarily from the execution of decisions on Nilfisk's future strategic priorities. The net cash impact in

2025 resulting from special items amounted to 23.9 mEUR, as most of these costs were non-cash items. Certain provisions related to these special items are expected to result in further cash outflows in 2026, including 23.3 mEUR related to the settlement of the insurance dispute. Other potential cash outflows depend on circumstances that were uncertain at the reporting date, such as the outcome of ongoing legal proceedings.

As part of a comprehensive strategic review of the business, Nilfisk has identified selected development projects and inventory items that will not be part of the future product portfolio, including the investment in Thoro Inc., an associated company specializing in autonomous cleaning technology. Furthermore, it has been decided to consolidate the production and R&D site in Brooklyn Park, US, into the existing production site in Querétaro, Mexico. As part of this transition, R&D activities are being relocated to Mexico and other established competence centers. Additionally, the consolidation of the Hungarian production sites was completed in 2025.

These strategic initiatives resulted in impairments and inventory write-downs totaling 25.1 mEUR as well as a provision related to other contractual obligations. They also resulted in costs of 5.6 mEUR and redundancy costs of 17.0 mEUR. Lastly, consultancy costs of 8.8 mEUR associated with these initiatives as well as the process relating to the voluntary takeover offer, announced in December 2025, were also recognized as special Items.

The divestment process of the US high-pressure washer business resulted in impairment and write-downs of 11.0 mEUR, and consultancy costs of 0.6 mEUR, also reported under special items.

In 2025, Nilfisk also recognized a provision of 23.3 mEUR relating to the insurance dispute concerning the insurance payout for the destruction of the US distribution center following a tornado, and an additional 4.2 mEUR related to the ongoing legal dispute with the building's owner. This reflects an adjustment to the existing provision, based on the Court of Appeals' ruling, an external legal assessment, and the Executive Management Board's best estimate of the expected financial impact. This was partly offset by an insurance income of 2.5 mEUR. Read more about the ongoing legal disputes in Note 8.3 Contingent liabilities.

Special items in 2024 were mainly severance and advisory costs incurred for strategic improvement projects as well as consolidation of the two US high-pressure washer operations. Furthermore, 2024 also included the claim filed against Nilfisk by the owner of the US distribution center building in Springdale, Arkansas as well as insurance income related to Hurricane Milton.

Read more in Note 2.4 Special Items in the financial statements.

Financial items

Net financial items for 2025 came to a cost of 23.3 mEUR, compared to a cost of 22.2 mEUR in 2024. This was mainly driven by higher foreign exchange losses from USD, partly offset by a decrease in interest expenses from lower interest rates.

Tax on profit (loss) for the period

For 2025, result before income taxes came to a loss of 49.0 mEUR, compared to a profit of 47.3 mEUR in 2024. Consequently, tax for the period amounted to a tax income of 12.3 mEUR, compared to a tax expense of 11.9 mEUR for 2024.This corresponded to an effective tax rate of 25.0% in 2025 compared to 25.2% in 2024.

Profit (loss) for the period

Result for the period for 2025 was a loss of 19.3 mEUR compared to a profit of 35.4 mEUR in 2024.

Working capital

As of December 31, 2025, working capital was 179.1 mEUR, in line with end of 2024. Both inventory and outstanding trade receivables ended at a lower level, but this was offset by corresponding lower trade payables and other liabilities.

Inventories came to 211.0 mEUR, a decrease of 22.1 mEUR compared to end of 2024. This was primarily driven by inventory write-downs related to the decisions affecting Nilfisk's future product portfolio and the divestment of the US high-pressure washer business. The decrease was partially offset by higher safety stock levels and new product introductions.

Trade receivables came to 144.3 mEUR, a decrease of 11.8 mEUR from the level end of 2024, primarily due to lower sales. The non-recourse factoring program ended with a total volume of 27.9 mEUR compared to 31.8 mEUR at the end of 2024.

Trade payables came to 100.8 mEUR, a decrease of 26.9 mEUR compared to end of 2024. This was mainly driven by timing of invoices and payments.

Compared to end of 2024, other current receivables decreased by 4.1 mEUR, mainly due to the settlement of the insurance receivable relating to Hurricane Milton and prepayments.

{19}------------------------------------------------

Other current liabilities came to 105.2 mEUR, a decrease of 7.0 mEUR compared to end of 2024, primarily related to a decrease in freight accruals and customer bonuses.

The 12-month average working capital ratio came to 20.3% at the end of 2025 compared to 16.9% at the end of 2024, driven by the higher average working capital level and lower revenue.

Capital employed and RoCE

As of December 31, 2025, capital employed amounted to 571.9 mEUR, down by 17.6 mEUR compared to 2024. The development in capital employed was mainly due to an increase in provisions related to legal cases and restructuring costs and decrease in intangible assets from impairments, all recognized as special items. This was offset by an increase in deferred tax assets.

The return on capital employed (RoCE) was 11.3%, down by 2.3 percentage points from 2024.

Cash flows

Cash flow from operating activities amounted to a net inflow of 28.8 mEUR in 2025, compared to an inflow of 51.9 mEUR in 2024. Cash flow was impacted by a negative operating profit, primarily driven by non-cash adjustments related to provisions, impairments, and write-downs recognized as special items. Adjusted for these non-cash effects, operating profit was positive at 43.5 mEUR. Cash flow was additionally negatively affected by outflow from changes in working capital primarily from investments into inventory and reduced trade payables compared to end of 2024. Severance payments related to cost reduction initiatives had a negative impact on cash flow for the period.

Cash flow from investing activities for 2025 was a net outflow of 44.2 mEUR on level with 2024.

For 2025, free cash flow was a cash outflow of 15.4 mEUR, compared to an inflow of 7.7 mEUR for 2024.

Equity

Equity was 264.6 mEUR at the end of 2025 against 319.4 mEUR at the end of 2024. For 2025, equity was impacted by the reported loss for the period, negative foreign exchange rate adjustments, and fair value adjustments on hedging instruments.

Net interest-bearing debt

At the end of 2025, net interest-bearing debt stood at 307.3 mEUR, up by 37.2 mEUR compared to the end of 2024. The increase was driven primarily by the increase in cash outflow from changes in working capital.

The financial gearing at the end of 2025 was 2.4x versus 1.9x at the end of 2024.

Subsequent events

Following the announcement in December 2025 of Freudenberg Home and Cleaning Solutions GmbH's intention to acquire Nilfisk, Nilfisk published announcement no. 1/2026 on January 7, 2026, regarding the publication of the offer document on the voluntary takeover offer made by Freudenberg. At the date of approval of this Annual Report, the offer remains subject to shareholder review and regulatory processes.

On January 16, 2026, Nilfisk received the Eastern High Court's (Østre Landsret) ruling in the insurance dispute related to the destruction of the US distribution center following a tornado.

The provision for this dispute has been recognized as special items in 2025. Read more in Note 4.7 Provisions, Note 6.1 Net interest-bearing debt, Note 8.3 Contingent liabilities, and Note 8.4 Events after the balance sheet date.

Other than as set out above, the Executive Management Board is not aware of events subsequent to December 31, 2025 that materially affect the assessment of the consolidated financial statements.

{20}------------------------------------------------

Our governance

{21}------------------------------------------------

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 ten members. Six 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 employee-elected members were elected in March 2022, and their terms will expire in 2026.

Among the shareholder-elected members are one woman and five men. The employee-elected members include one woman and three men. Of the six shareholder-elected members three are Swedish, two are Norwegian, and one is French. Four members (67%) are considered independent and two are considered non- independent (33%). 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 26-28 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, 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

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), Ole Kristian Jødahl 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), Are Dragesund Defines and recommends the qualifications for the Board of Directors and the Executive Management Board. Board of Directors Holds overall responsibility for the overall strategic management of Nilfisk. Executive Management Board Jon Sintorn (CEO), Carl Bandhold (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.

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.

{22}------------------------------------------------

Board Committees

The Board of Directors annually assesses the relevance of appointing separate Nomination, Remuneration, Audit, and other relevant committees. In 2025, 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. All committees have two members, and are appointed for one year a time. 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

The principal duties of the Audit Committee 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. All members possess the relevant financial expertise, and both members qualify as being independent.

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.

Remuneration Committee

The principal duties of the Remuneration Committee are:

  • 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 to achieve growth, profitability, and shareholder value.
  • To establish 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.

• To oversee 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. Read more about the activities of the Remuneration Committee in the Remuneration Report available at Nilfisk's Investor Relations site https://investor. nilfisk.com.

Nomination Committee

The principal duties of the Nomination Committee are:

  • 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
  • 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.

The Board of Directors decided to postpone the 2025 self-assessment due to the significant and unusually high workload regarding the voluntary takeover offer for Nilfisk Holding A/S. 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 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, 2025, the Nilfisk Leadership Team is comprised of seven 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 29-30 for particulars of the Nilfisk Leadership Team.

{23}------------------------------------------------

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 34.

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 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 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.

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 the Board of Directors once a year evaluates the Board of Directors and at least every three years engages external assistance in the evaluation, the Board of Directors decided to postpone the 2025 self-assessment due to the significant and unusually high workload regarding the voluntary takeover offer for Nilfisk Holding A/S.
  • With respect to the recommendation that the entire Board of Directors discusses the result of the evaluation of the Board of Directors and that the procedure for the evaluation and the general conclusions of the evaluation are described in the management commentary, on the company's website and at the company's general meeting, this recommendation has not been followed due to the postponement of the 2025 self-assessment.

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.

Material Agreements with Change-of-Control Clauses

Nilfisk has entered into the following material agreements that include change-of-control clauses:

  • Nilfisk's credit facility agreements contain change-ofcontrol clauses, which give the counterparty the right to accelerate repayment, terminate the agreement, or renegotiate commercial terms.
  • Change-of-control clauses have been incorporated into the CEO's and CFO's employment agreements with 24 and 18 months' notice period respectively.

Nilfisk continuously assesses these agreements as part of its overall risk management and does not consider the change of control clauses to pose a material risk to Nilfisk's operational continuity under normal circumstances.

{24}------------------------------------------------

Attended Not attended

Board of Directors

2025 attendance overview

Board of Directors meetings Audit Committee Remuneration Committee Nomination Committee
Number of meetings 10 5 4 2
Peter Nilsson
René Svendsen-Tune2
Are Dragesund1
Franck Falezan3
Bengt Thorsson
Ole Kristian Jødahl4
Viveka Ekberg
Gerner Raj Andersen
Marcus Faber Kappendrup
Nadia Roya Damiri8
Claus Dalmose7
Wannie Hansen5
Alexander Kjær Rasmussen6

2 Member and Deputy Chair of the Board of Directors, and member of the Nomination Committee until March 19, 2025.

3 Member of the Nomination Committee until March 19, 2025.

4 Member of the Remuneration Committee since March 19, 2025.

5 Member of the Board of Directors since September 23, 2025.

6 Member of the Board of Directors since October 9, 2025.

7 Member of the Board of Directors until September 23, 2025.

8 Member of the Board of Directors until October 9, 2025.

{25}------------------------------------------------

Board of Directors

Chair Born 1962. Male Independent

First elected in March 2022 June 2020 June 2020 March 2023

Expiry of current term March 2026 March 2026 March 2026 March 2026

Core competencies • Executive management

Creades AB

  • Management of listed companies
  • Application of business models and value chains, including service and aftermarket

• Member of the Board of Directors of Cavotec SA and

Committees Nomination Committee Remuneration Committee

Selected positions and directorships • Chair of the Board of Directors of Lindab Group

Nilfisk shares end of 20251 44,104 (40,104) 0 (0) 0 (0) 1,000 (1,000)

Are Dragesund

Deputy Chair Born 1975. Male Non-independent

  • M&A and capital markets
  • Restructuring and profit improvement
  • Strategy and organization
  • Nomination Committee N/A Audit Committee
  • Co-Head Ferd Capital, Ferd AS
  • Member of the Board of Directors of Mestergruppen A/S, Leroy Seafood Group ASA and Brav AS
  • Education MSc in Business and Economics MsC Economics and Business Administration Master in Business Administration BSc in Business Administration

Franck Falezan

Member Born 1971. Male Non-independent

  • Strategy
  • Restructuring
  • Finance

Bengt Thorsson

Member Born 1964. Male Independent

  • International management
  • Business and service transformation
  • Mergers and Acquisitions

  • ESG

  • Founder and Managing Partner at PrimeStone Chair of the board of directors of GoodSolutions AB

  • Member of the Board of Directors of Envac Group
  • Member of the Board of Directors of Atlas Antibodies Group

End of 2024 in parenthesis.

{26}------------------------------------------------

Board of Directors – continued

Ole Kristian Jødahl

Member Born 1971. Male Independent

First elected in March 2023 March 2023

Expiry of current term March 2026 March 2026

  • Core competencies Executive management, strategic and operational
  • Management of leading global industrial companies
  • Acquisitions, integrations, distribution and service business

• Member of the Board of Directors of Alimak

• Member of the Board of Kemppi Oy

Viveka Ekberg

Member Born 1962. Female Independent

  • 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 Remuneration Committee Audit Committee

  • Member of the board and chair of the audit committee of AutoStore Holdings Ltd, Lindab International AB, and Chair of the Storebrand ASA Audit Committee
  • MSc in Accounting & Finance and International Business

Selected positions and directorships • President and CEO of Alimak Group AB

Nilfisk shares end of 20251 6,082 (5,515) 9,500 (9,500)

Education • Economics studies at NHH, Norwegian School

of Economics

Group AB

End of 2024 in parenthesis.

{27}------------------------------------------------

Board of Directors – continued

Gerner Raj Andersen

• Member of the board of Sem Vandværk

Employee representative
Born 1966. Male		 Employee representative
Born 1976. Male		 Employee representative
Born 1983. Female		 Born 1992. Male
First elected in March 2018 March 2022 September 2025 October 2025
Expiry of current term March 2026 March 2026 March 2026 March 2026
Position at Nilfisk •
Customer Care Representative
•
Joined Nilfisk in 1990		 •
Enterprise Architect
•
Joined Nilfisk in 1999		 •
Vice President, Group Reporting and Operational
Finance
•
Joined Nilfisk in 2020		 Excellence
Committees N/A N/A N/A N/A
Selected positions •
Owner of Mågaard I/S

Selected positions and directorships

Nilfisk shares end of 20251 500 (500) 32 (32) 238 (238) 0 (0)

Marcus Faber Kappendrup

Employee representative Born 1976. Male

  • Enterprise Architect
  • Joined Nilfisk in 1999

Wannie Hansen

  • Vice President, Group Reporting and Operational Finance

  • Joined Nilfisk in 2020

  • Education Secondary program Degree in Business Administration Graduate Diploma in Business Administration (Accounting and Financial Management)

  • MSc in Business Economics and Auditing

Alexander Kjær Rasmussen

Employee representative Born 1992. Male

  • Senior Project Manager, Project Management Excellence

  • Joined Nilfisk in 2017

  • Board Member in the staff association at Nilfisk N/A SUMO member and Health & Safety Representative in Nilfisk Hadsund

  • MSc in Industrial Design from Aalborg University

{28}------------------------------------------------

Nilfisk Leadership Team

President & CEO Member of the Executive Management Board Born 1966. Male

Joined Nilfisk 2024 2025 2022 2025

Core competencies • International management

  • Business transformation

  • Strategy execution

  • Positions and directorships Director of the Board Werlabs

  • Director of the Board Ejendals

Previous positions • Nobia

  • Permobil

  • Education MSc in Engineering Physics, Uppsala University

  • MBA, Stockholm School of Economics

Nilfisk shares end of 20251 18,770 (17,270) 14,000 (0) 4,350 (4,261) 16,000 (0)

Carl Bandhold

Executive Vice President & CFO Member of the Executive Management Board Born 1974. Male

  • Strategy
  • M&A
  • Organizational change
  • Performance improvements
  • Financial performance management

Board member and audit committee chairman at Dynavox Group (publ.)

  • Profoto Holding (publ.)
  • JM AB (publ.)
  • Permobil Group
  • The Boston Consulting Group
  • Accenture
  • MSc in Chemical Engineering from Chalmers University of Technology
  • MBA, INSEAD

Siam Schmidt

Executive Vice President People, Organization & Culture Born 1976. Female

  • Development of people, organization and culture
  • Diversity, equity & inclusion (DE&I)
  • Environment, health, and safety (EHS)
  • M&A

  • Transformations

  • Royal Unibrew A/S

  • Novo Nordisk A/S
  • Leo Pharma A/S
  • Combined Master of Arts Degree in French and International Studies and Communications from Aalborg University

Eerikki Mäkinen

Executive Vice President Products, Technology & Innovation Born 1974. Male

  • Global Business Unit leadership
  • R&D, Innovation, and product management
  • Business transformation
  • M&A and business integration management
  • Global manufacturing and sourcing

N/A Board member at Thoro

  • Konecranes
  • SKF
  • Valmet
  • MSc Engineering

End of 2024 in parenthesis.

{29}------------------------------------------------

Nilfisk Leadership Team – continued

Camilla Ramby

Executive Vice President Special Businesses, Group Marketing & Sustainability Born 1976. Female

Joined Nilfisk 2018 2007 1995

  • Core competencies General management and business leadership
  • International sales and marketing
  • Sustainability and ESG

Positions and directorships N/A N/A N/A

  • Previous positions Danske Bank A/S
  • TDC A/S

  • Codan A/S

  • Education MSc in International Marketing & Management MSc Industrial Engineering from CentraleSupélec

  • Nilfisk shares end of 20251 5,544 (4,861) 4,000 (2,100) 3,815 (3,552)

Christopher Riau

Executive Vice President EMEA Professional Business Born 1979. Male

  • Business strategy
  • Service businesses
  • International commercial management

  • Industrial engineering

  • Elis

  • Robert Bosch
  • Mercedes-Benz
  • and Reutlingen-Emlv University

Thomas Dragø Nielsen

Executive Vice President APAC Region Acting Executive Vice President Americas Region Born 1968. Male

  • General management & business leadership

  • Commercial activation and execution

  • Nilfisk Pty. Ltd. (Australia)

  • Nilfisk Ltd. (UK)
  • MSc International Business Economics

{30}------------------------------------------------

Share 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 30, 2024 104.40 DKK
Closing price at December 30, 2025 138.80 DKK
Change during fiscal year 33.0%

Ownership structure

The company has approximately 9,800 registered shareholders that own a combined 97.3% of total share capital. The company has one share class and the number of shares and voting rights are equal.

On December 31, 2025, Nilfisk's shareholder structure was:

Number
of shares		 Share
capital
6,588,568 24.3%
5,493,200 20.3%
1,627,740 6.0%
1,376,114 5.1%
8,280,208 30.5%
3,003,939 11.1%
756,600 2.7%

Dividend policy and dividend for 2025

The Board of Directors has 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 largescale 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, 2026, the Board of Directors will recommend that no dividends be distributed for the financial year 2025.

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 highquality information to financial markets, investors, analysts, and other stakeholders through road shows, conferences, company announcements, and via the investor relations website.

At year-end 2025, Nilfisk Holding A/S was covered by two 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 2026 February 19 Annual Report 2025 March 19 Annual General Meeting August 13 Interim Report H1 2026

{31}------------------------------------------------

Responsible tax

The guiding principle for Nilfisk within the tax area is to observe and comply with all applicable international and domestic tax regulations, along with reporting and disclosure requirements. The group strives to follow both the demands and the intentions of these requirements.

Nilfisk does not operate in low-tax jurisdictions, tax havens, or jurisdictions that are on the EU' s blacklist, nor does it make use of special tax optimization models designed for tax evasion purposes.

Nilfisk's Tax Policy is based on compliance with tax laws as well as tax risk management, transparent tax planning, the use of incentives, and cooperation with governments and authorities.

Tax Compliance

Nilfisk products and services are sold in more than 100 countries worldwide, and thereby subject to multiple tax codes and practices. To ensure compliance with all applicable legislation, tax compliance is managed in collaboration between local and group teams.

Tax payments

Nilfisk contributes with taxes and duties collected, which include (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 jurisdictions outside of Denmark,

where its subsidiaries are located. Nilfisk pays income taxes in relation to its employment contracts as per applicable laws.

Effective tax rate

For 2025, the Group's effective tax rate was 25.0% (2024: 25.2%, 2023: 25.4%), which shows consistency in the effective tax rate. For 2025, the effective tax rate was mainly affected by non-deductible items and change in deferred tax.

Country-by-country report

As part of the value creation for all stakeholders, Nilfisk is committed to offering transparency on the environmental, social and governance impact of its businesses.

Nilfisk acknowledges the need for more transparency from both taxpayers and tax administrations, and the need to provide more clarity about Nilfisk's position on tax. In doing so, the 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 introduces public countryby-country reporting requirements.

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Country-by-country report for 2025

The report is based on the principles in the OECD Country-by-country reporting guidelines, which also include various intercompany transactions.

Therefore, there are certain differences between the numbers listed in the Country-by-Country report and the ones in the Annual Report.

Tax jurisdiction Business
activity		 Revenue¹ – unrelated
party
(kEUR)		 Revenue – related
party
(kEUR)		 Total Revenue – 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/retained earnings
(kEUR)		 Number of full-time
employees
(FTE)
Denmark Principal 59,407 447,714 507,120 -602 -3,071 245,956 316
Austria Sales 9,230 72 9,302 267 126 64 2,735 34
Belgium Sales 18,269 73 18,342 494 100 124 1,713 47
Czech Republic Sales 7,022 1,439 8,461 202 70 54 212 30
Finland Sales 8,567 34 8,600 202 12 40 212 18
France Sales 106,478 1,952 108,430 2,456 748 803 2,172 231
Germany Sales 146,855 1,831 148,686 4,380 2,018 1,393 -20,481 310
Greece Sales 9,631 - 9,631 173 - -11 144 20
Hungary Sales/Production/R&D 7,435 175,057 182,493 6,447 2,342 540 5,137 822
Ireland Sales 3,214 39 3,253 96 20 13 395 2
Italy Sales/Production/R&D 25,878 27,031 52,910 2,675 1,984 544 15,765 169
Netherlands Sales 24,937 1,883 26,820 705 190 176 2,636 80
Norway Sales 18,222 51 18,272 347 123 76 -442 44
Poland Sales 12,515 716 13,232 342 79 126 542 57
Portugal Sales 7,477 2,315 9,792 202 85 65 4,086 27
Romania Sales 2,889 24 2,913 72 - 12 598 12
Slovakia Sales 2,017 5 2,023 51 15 28 268 8
Spain Sales 24,702 904 25,607 531 201 155 4,056 105
Sweden Sales 24,211 621 24,832 321 -83 66 465 59
Switzerland Sales 13,392 - 13,392 310 53 51 -1,425 32
Türkiye Sales 26,678 212 26,890 4,660 920 1,575 9,749 65
United Arab Emirates Sales 4,778 - 4,778 -49 1 4 677 8
United Kingdom Sales 53,085 2,687 55,772 2,922 105 724 4,604 171
Total EMEA 616,889 664,660 1,281,551 -47,317 8,507 3,551 279,774 2667
Total Americas 306,865 99,939 406,804 -4,332 709 3,516 -31,078 848
Total APAC 74,904 62,168 137,072 2,635 1,240 1,222 17,553 874
Total Nilfisk Group 998,658 826,767 1,825,427 -49,014 10,456 8,289 266,249 4389

1 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.

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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 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. Risks identified in the DMA as material gross risks related to financial sustainability (before mitigation) have also been incorporated into the overall risk management process. Since sustainability-related risks highlighted in the DMA overlap with those in the enterprise risk management process, this demonstrates the connection and synergy between the two 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

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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 our growth 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 resistant 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 a risk of global economic conflicts may negatively impact
our financial position, increase costs, and decrease demand for Nilfisk products, reducing sales in a downward
direction. At the same time, major social or political instability and changes may disrupt the cleaning industry and
our business.		 We closely monitor developments 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, including preparing for the Network and Information Security Directive (NIS2)
audit in 2026.
4 Failure to innovate or
maintain relevant product
portfolio		 Technological developments and improvements are key to remaining competitive in the markets. If one or more
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 on the markets.		 We established a strong value proposition linked to strategic priorities and optimization opportunities, 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. This to ensure that the product portfolio is updated
and relevant to our customers.
5 Data integrity, quality, and
privacy		 There is a risk of suboptimal decisions and to some extent loss of business due to a lack of accurate, integrated
and complete data. Failure to protect data privacy and comply with legislation (GDPR) will also have a negative
impact on our business.		 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.

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General information

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Sustainability at a glance

At Nilfisk, sustainability is both a shared responsibility and a strategic priority integrated throughout our business. It guides how we operate, serve our customers, and invest, demonstrating our efforts to address real-world cleaning challenges while reducing our impact on people and the planet.

In 2025, we achieved a significant milestone with the approval of our Net-Zero climate targets by the Science Based Targets initiative (SBTi). Several product launches and updates during the year supported scope 3 decarbonization by enabling the use of alternative fuels, enhancing energy efficiency, and substituting virgin plastics with recycled materials. The next step is to scale these initiatives across our broader portfolio further advancing our pathway toward Net-Zero by 2040.

Our approach to sustainability is shaped by our double materiality assessment. To ensure we direct resources to areas with the greatest customer needs and sustainability impact, we complement this with a commercial review. In this way, we identify topics where we can help our customers achieve their goals while advancing Nilfisk's vision of sustainable business.

Nilfisk has long publicly communicated its ambitions and progress in sustainability reports, and through internationally recognized reporting frameworks. Our commitment to transparency and continuous improvement enables us to effectively address the growing number of customer inquiries. In 2025 customer inquiries on sustainable product features and data more than doubled. We are pleased to see growing engagement on these topics, indicating that sustainability has matured into a commercial enabler.

At Nilfisk, sustainability is regarded as a core competence and a source of competitive advantage. To strengthen this capability, we prioritized sustainability-focused sales training and dedicated tools in 2025, with this emphasis continuing into 2026. These initiatives are designed to integrate sustainability into customer interactions, ensuring that our solutions deliver both environmental and business value. An example is our CO2 calculator, the first in the industry, that allows customers and Nilfisk colleagues to look up use-phase emissions for all our products.

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Sustainability commitments

A cleaner future is built on sustainable business

Nilfisk's sustainability approach aligns social and environmental impact with commercial interests and financial incentives. Our approach is guided by the double materiality principle and informed by customer needs and demands.

Driving sustainability forward based on data

We measure our performance based on internationally recognized and science-based frameworks. Our sustainability commitments reflect both what we consider to be our responsibility and opportunity, and they span the three dimensions of ESG: Environment, Social, and Governance. Progress is tracked and reported quarterly to the Sustainability Steering Committee and the Audit Committee.

Incentivizing target achievement

Nilfisk's incentive programs are designed to drive sustainability by directly linking performance rewards to annual progress on key environmental targets. The long-term bonus program assigns a 20% weighting to reductions in scope 3 greenhouse gas emissions, while the short-term bonus program incorporates a 10% weighting for achievement across four selected sustainability KPIs. Additionally, the interest margin on one of Nilfisk's credit facilities is tied to sustainability targets. More comprehensive details can be found in the Remuneration Report and the Financial Statements.

Science-based climate action as a compass

Science-based climate action is our guiding principle. By aligning with SBTi and embedding sustainability into product design, we deliver cleaning solutions that use fewer resources, last longer, and help customers cut costs while reducing environmental impact.

Empowering people

We help our customers solve real-world cleaning challenges, while reducing our impact on people, by building fair, inclusive, and safe workplaces.

Responsible business conduct at the core

We are committed to promoting good governance and integrity-centric behavior throughout the company.

Ambition

ESRS topics

Selected targets

S2 Workers in the value chain G1 Business conduct

Emissions from a 2021 base year

2030 Target 2040 Target

50.5% 90%

reduction of absolute scope 1 and 2 GHG emissions.

2030 Target 2040 Target

42% 90%

reduction of absolute scope 3 GHG emissions from purchased goods and services and use of sold products.

Plastic

1,280

tonnes recycled plastics to replace virgin plastic in products by 2028.

Equal representation

37.5%

of the underrepresented gender in the Board of Directors by 2027.

34%

of the underrepresented gender in top management by 2026 and equal representation by 2030 (40/60).

Sustainability governance

Gold

To sustain EcoVadis Gold in the annual EcoVadis assessment.

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Sustainability certifications

Backed by data and third-party validation

Nilfisk is dedicated to transparency and accountability in our sustainability performance. We align with globally recognized standards and frameworks because independent validation and credible ratings provide clarity and confidence beyond words.

Nilfisk has been committed to the UN Global Compact since 2010 and has held approved Science-Based Targets (SBTi) for scope 1, 2, and 3 emissions since January 2022. We are proud to be among the first companies in the cleaning industry to adopt a science-based and transparent approach to sustainability. In 2025, we further strengthened our ambitions by updating our targets and committing to Net-Zero emissions by 2040.

Nilfisk discloses its impacts through internationally recognized sustainability frameworks such as EcoVadis, CDP, and Sedex. These frameworks guide how Nilfisk executes on sustainability and how we contribute to the UN Sustainable Development Goals (SDGs).

Customer value through standards and certificates

Partnering with Nilfisk offers confidence and clarity. Our commitment to independent verification and global alignment reduces compliance and reputational risks. Transparent reporting and trusted data support customers in meeting ESG goals and procurement requirements. Together, we turn mutual sustainability ambition into stronger customer relations.

Certification
Nilfisk active since 2005 2010 2015 2018 2022 2023
What is it in brief ISO certifications set global
standards for Quality management
(9001), Environmental management
(14001), Energy management
(50001), and Occupational health
and safety (45001).		 The UN Global Compact is a
voluntary CEO-led initiative
promoting 10 principles on
environment, labor, human rights,
and anti-corruption, supporting
UN goals.		 EcoVadis is a leading platform
for business sustainability
ratings. Nilfisk uses EcoVadis
assessments to improve its
practices.		 CDP is a leading global system
for companies to disclose and
manage environmental impacts
like emissions, water, and plastics.		 The SBTi is a global organization
that helps companies set green
house gas reduction targets in line
with climate science and the goals
of the Paris Agreement.		 SMETA by Sedex is a leading
social audit focusing on labor,
working conditions, environment,
and ethics at the site level.
What it means to
customers		 ISO certificates demonstrate Nilfisk
meets international standards, often
requested by customers in tenders.		 Long-standing UN Global Compact
commitment demonstrates
Nilfisk's credibility in sustainability
for customers.		 EcoVadis rates Nilfisk in the top
percentile, assuring customers
of strong performance in
sustainability areas.		 High CDP scores provide
transparency that supports
customers' compliance and risk
assessments.		 SBTi verified Net-Zero targets for
2030 and 2040 give customers
confidence in Nilfisk's climate action
and help them meet their own goals.		 SMETA audits offer customers
assurance on manufacturing
conditions for their due diligence
needs.
Learn more about
Nilfisk's performance		 ISO UN Global Compact Ecovadis CDP SBTi Contact Nilfisk

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Sustainability governance

Nilfisk is committed to fully integrating sustainability into processes and decision-making throughout the company. Sound sustainability governance oversees integration and progress.

Board of Directors

Oversight and governance of Nilfisk's sustainability ambitions are anchored with the Board of Directors and cascaded through the organization. The Board of Directors monitors and ensures progress towards our strategic priorities, covering sustainability and target achievements. The Board of Directors receives annual updates on targets and progress.

Audit Committee

The Audit Committee oversees 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. The Audit Committee monitors progress on sustainability targets and oversees compliance with sustainability regulations.

Nilfisk Leadership Team

The Nilfisk Leadership Team sets the strategic direction for Nilfisk and guides execution. As per the performance management set-up of Nilfisk, area and functional heads are responsible for implementing targets and actions on sustainability.

Sustainability Steering Committee

The Sustainability Committee is comprised of three Nilfisk Executive Leaders with decision-making authority: Chief Financial Officer; Head of Products & Operations; Head of Specialty Business, Marketing & Sustainability.

The committee drives the sustainability agenda by setting priorities, guiding transition, ensuring compliance, and overseeing performance. It also approves the Sustainability Statements. Responsibility and targets are cascaded to relevant functions with progress reported in quarterly reviews.

Progress and compliance reporting

The Sustainability team reports progress on targets and supports strategic sustainability priorities, particularly environmental topics. In addition, Nilfisk has established a Group ESG controlling function within Finance for compliance reviews and internal controls.

Related committees

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

Read more

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

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Double Materiality Assessment

The Double Materiality Assessment is the foundation for reporting on material sustainability-related impacts, risks, and opportunities in compliance with the CSRD reporting requirements.

The Double Materiality Assessment (DMA) considers Nilfisk's impact on the environment and people as well as the financial impact of sustainability-related topics on the 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

The illustration on the right presents the results of Nilfisk's DMA, summarized by ESRS topic. In summary, Nilfisk identified 8 ESRS topics (9 in 2024) and 16 sub-topics (21 in 2024) as impact and/or financially material. The environmental impacts and risks found are mainly associated with the production and use of our products. In addition, as a company operating globally with a broad supply chain, Nilfisk affects its own employees as well as workers throughout the value chain, and end-users.

The Impact, Risk, and Opportunity (IRO) overview, combined with the DMA methodology, offers a thorough perspective for identifying, prioritizing, and continuously monitoring both actual and potential sustainability impacts and appropriate actions. The DMA serves as a strategic tool, helping Nilfisk systematically map and prioritize sustainability matters key to the company, which in turn shapes and guides its overall strategic direction.

While we continuously identify and assess potential opportunities, these are often difficult to qualify as material under the current DMA evaluation criteria. Nonetheless, Nilfisk actively pursue these opportunities to ensure long-term value creation.

Adjustments from 2024 to 2025 are the result of Nilfisk's ongoing efforts to enhance the DMA process, such as refining IRO ratings described in the DMA methodology section on page 91. Topics and sub-topics deemed not material in 2025 include E4 Biodiversity, E5 Waste, S1 and S2 Other workrelated rights, and S2 Equal treatment and opportunities for all.

Additional information about Nilfisk's approach to managing IRO impacts—including relevant policies, initiatives, objectives, and performance indicators—can be found in the respective Environment, Social, and Governance sections.

Further information

The subsequent pages include an illustration of strategic IROs within Nilfisk's value chain and detailed descriptions of the material IROs identified through the DMA.

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Sustainability impacts from Nilfisk business model

Selected material sustainability-related impacts, risks, and opportunities across our value chain

Security of end-users

NEGATIVE IMPACT

Greenhouse gas emissions Disassembly of products and components (Scope 1, 2, and 3) Pollution from mismanagement Health and safety Pollution from substances of concern and Value chain workers' rights and health very high concern

RISK

9 E1 Natural disasters
10 E5 Scarcity of materials
1 G1 Corruption and bribery prevention and detection

OPPORTUNITY

Enabling sustainable cleaning solutions from upstream to downstream

Nilfisk solves real-world cleaning challenges for our customers by designing, manufacturing, distributing, and servicing cleaning equipment.

The Nilfisk upstream value chain includes sourcing and collaboration with suppliers on products. The downstream value chain covers the product use phase and product end-of-life, including refurbishment and resale activities. Nilfisk's own operations encompass primary activities such as inbound logistics, operations, outbound logistics, marketing, sales, and service, as well as corporate support activities.

Emissions from the use-phase of our products constitute the biggest sustainability impact.

By enhancing product efficiency and circularity, Nilfisk seeks to reduce environmental impacts and strengthen our market position. Continuous innovation in product design and materials mitigates sustainability risks and can unlock commercial opportunities. Page 44 details the sustainability impact of Nilfisk's products.

Water consumption from product usage

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Safe, efficient, and durable products

Sustainability in Nilfisk revolves around building safe, efficient, and durable products. We build sustainability into our products to the benefit of people and the planet.

Sustainable cleaning solutions are about improving quality of life, reducing strain for workers through ergonomic design, lowering costs through reduced water, energy, and detergent use, and ensuring reliability through durable, repairable machines that stand the test of time.

Our approach is simple, do more with less. Every new development is focused on efficiency from advanced control systems that optimize resource consumption to components designed for easy serviceability and extended lifecycles.

By helping customers clean smarter, we help them cut waste, minimize downtime, and reduce total cost of ownership, all while lowering their environmental footprint.

Examples of sustainability impacts considered in new product development across the Nilfisk portfolio

Ergonomic and user-friendly

  • Adjustable ergonomics
  • Customizable user Interface
  • Highlighted user touch points
  • Easy access to training

Health and safety

  • HEPA filters
  • High cleaning performance
  • Informative status and safety lights

Energy efficiency

  • Efficient motors
  • Alternative fuel sources and batteries
  • Lower machine weight

Serviceability

  • Improved remote, onsite diagnostics and first-time fix
  • Comprehensive lifecycle service solutions

Consumables

  • Less water and detergent with same cleaning efficiency
  • Less and more sustainable packaging

Durability and repairability

  • Built to be refurbished
  • Changeable cleaning heads and cords
  • Removable squeegees

Autonomous

  • Improved quality of clean
  • Addressing labor shortage

Sustainable materials

  • Recycled plastics
  • Switch to lower carbon materials

{44}------------------------------------------------

Material impacts, risks, and opportunities

The tables below summarize sustainability Impacts, Risks, and Opportunities (IROs) from our Double Materiality Assessment (DMA) for each ESRS topic. Each table briefly describes the IROs, their effect in the value chain (own

operations, downstream, or upstream), whether impacts are positive or negative, actual or potential, and the time horizon. More details are available in the Environment, Social, and Governance sections.

Environmental IRO Impact, Risk,
or Opportunity		 Value chain* Time horizon
of impact		 Description Disclosure requirement
E1 Climate change UP OO DO
1. Climate change mitigation
Climate change mitigation GHG emissions Actual negative impact Short GHG emissions from own operations and the use-phase of products (scope 1, 2, and 3 emissions).
(Scope 1, 2, and 3) Risk There is a financial risk associated with implementing and improving operations to comply with new regulatory and customer
requirements related to GHG emissions.		 E1-1, E1-2, E1-3, E1-4,
E1-5, E1-6
Opportunity Opportunity to increase sales and expand market share from developing documented low-carbon products.
2. Climate change adaptation
Climate change adaptation Natural disasters Risk Nilfisk operates in regions vulnerable to natural disasters, including tornadoes and hurricanes, posing inherent financial risks. E1-2, E1-3, E1-4
3. Energy
Energy Fossil energy Actual negative impact Short Use of fossil energy during operations, and from Nilfisk products, contributes to depleting energy sources, which might prevent future
generations from accessing them, while also contributing to climate change.		 E1-2, E1-3, E1-4, E1-5
E2 Pollution
4. Substances of concern
5. Substances of concern and very high concern
Substances of concern,
Substances of very high concern		 Pollution from substances of
concern and very high concern		 Actual negative impact 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 products are disposed of. If not handled correctly, the substances contained in the
products may pollute surroundings and negatively affect people and the environment.		 E2-1, E2-2, E2-5, E2
Risk Several of Nilfisk's products contain substances that require volume tracking. Due to the complexity of tracking volumes of substances
of concern and very high concern and the regulatory requirements related to such tracking, there is an inherent financial risk of fines for
non-compliance.		 (entity-specific)
PFAS (entity-specific) Risk Due to concerns about PFAS, the use of PFAS will be banned in the US and EU before 2030. Furthermore, Nilfisk is being met with requests
from customers to track or even ban the presence of PFAS in products. Consequently, there is a risk that Nilfisk's products will not meet
regulatory as well as customer requirements, which could potentially affect Nilfisk's sales and financial position.		 E2 (entity-specific)
6. Pollution of air, water, and soil
Pollution of air, water, and soil Pollution from end-of-life
products (entity-specific)		 Actual negative impact Short Several of Nilfisk's products risk polluting air, water, and soil, if products are not handled correctly at the end-of-life.
Mismanagement might lead to pollution, which might negatively affect people and the environment.		 E2-1, E2-2, E2
(entity-specific)

{45}------------------------------------------------

Sustainability at a glance

Short

Short

•

Sustainability commitments

Sustainability certifications

Promoting diversity drives innovation and fosters a culture of inclusion in which everyone in the workplace is valued.

Nilfisk has identified a gender pay gap and is taking action to ensure equal pay.

There is an inherent financial risk from existing gender pay gap related to employee retention.

Sustainability governance

Sustainability impacts

IR0s

Environmental – continued IRO Impact, Risk,
or Opportunity		 Value chain' k Time horizon
of impact		 Description Disclosure requireme
E3 Water and marine resources
7. Water
Water Water consumption from product usage (entity-specific) Risk • • Short,
Medium		 There is a financial risk associated with implementing and improving operations to comply with new regulatory and customer requirements related to water. E3-1, E3-2,
E3 (entity-specific)
E5 Circular Economy
8. Resource inflows
Resource inflows Scarcity of materials Actual negative impact • 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. — E5-1. E5-2. E5-3. E5-
Risk • There is an inherent operational risk from scarcity of materials as it would require research and validation of alternative raw materials for sustaining production. — E5-1, E5-2, E5-3, E5-4
9. Resource outflows
Resource outflows Repairability and recyclability of products and components Actual negative impact • Short Nilfisk's products cannot be fully recycled or repaired due to design and logistical challenges, meaning that the Nilfisk value chain contributes to resource depletion by lack of optimization towards recyclability and repairability of materials.
Packaging waste Actual negative impact • • Short Nilfisk's packaging waste may cause pollution of air, water, and soil. E5-1, E5-2, E5-3, E5-
EU sustainable product initiative Risk • 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.
Impact, Risk, Time horizon
Social IRO or Opportunity chain 3 of impact Description Disclosure requireme
S1 Own Workforce UP 00 DO
10. Working conditions
Health and safety Health and safety relating to workplace accidents Actual and potential negative impact • 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 can cause negative impacts for Nilfisk's employees. S1-1, S1-2, S1-3, S1-4
— S1-5, S1-6, S1-7, S1-1
Risk • 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 loss. S1-3, 31-0, 31-7, 31-1
Working time Other working conditions Risk • There is an inherent financial risk from high workload that could lead to higher employee turnover and lower productivity. \$1-1, \$1-2, \$1-3, \$1-4
\$1-6, \$1-7, \$1-17

S1-1, S1-2, S1-3, S1-4,

S1-6, S1-7, S1-9, S1-16,

S1-17

Diversity

Gender equality and equal pay for

work of equal value

  1. Equal treatment and opportunities for all

Diversity, social equity and

equal treatment

Gender pay gap

Actual positive impact

Actual negative impact

Risk

* Own operation (OO), upstream (UP), or downstream (DO)

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General information Environment Social Governance Additional information

Sustainability at a glance Sustainability commitments Sustainability certifications Sustainability governance DMA Sustainability impacts IROs

Social – continued IRO Impact, Risk,
or Opportunity		 Value chain* Time horizon
of impact		 Description Disclosure requirement
S2 Value Chain Workers
12. Working conditions
Health and safety Health and safety risks at
direct suppliers		 Potential negative
impact		 Short Nilfisk's value chain workers at direct and indirect suppliers are subject to health and safety risks, which can lead to accidents. S2-1, S2-2, S2-3,
S2-4, S2-5
Adequate wages, working time Value chain workers' rights Potential negative
impact		 Short Value chain workers' rights to adequate wages and working time might not be respected by the upstream value chain. This is considered a
potential impact.		 S2-1, S2-2, S2-3,
S2-4, S2-5
Risk If value chain workers' rights to adequate wages and working time are not respected, this could have a negative reputational and
operational effect. There is considered an inherent financial risk.
S4 Consumers and end-users
13. Personal safety of consumers and end-users
Security of a person,
Health and safety		 Security of end-users Potential negative
impact		 Short The safety of Nilfisk's end-users 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 of accidents from the use of Nilfisk's machines.		 S4-1, S4-2, S4-3,
S4-4, S4-5
Risk Short There is an inherent financial risk associated with the health and safety performance of Nilfisk products. S4-1, S4-2, S4-3,
S4-4, S4-5
14. Information-related impacts and personal safety
Privacy GDPR privacy of customers
and end-users		 Risk There is an inherent risk of fines from non-compliance with regulatory requirements related to GDPR for customers' personal information. S4-1, S4-2, S4-3,
S4-4, S4-5
Governance IRO Impact, Risk,
or Opportunity		 Value chain* Time horizon
of impact		 Description Disclosure requirement
G1 Business conduct UP OO DO
15. Corruption and bribery
Incidents and prevention and
detection including training		 Corruption and
bribery incidents		 Risk There is an inherent risk of fines and negative reputational effects from corruption and bribery incidents. G1-1, G1-3, G1-4
16. Protection of whistleblowers
Protection of whistleblowers Whistleblowers Risk There is an inherent risk of fines and negative reputational effects if Nilfisk fails to protect whistleblowers or breaches GDPR rules. G1-1

* Own operation (OO), upstream (UP), or downstream (DO)

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49 E1 Climate change

59 E2 Pollution

63 E3 Water and marine resources

65 E5 Resource use and circular economy

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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 customers and general stakeholders.

Share of Nilfisk GHG emissions by scope 3 and scope 1 and 2

GHG emissions across the value chain

99% of Nilfisk's greenhouse gas (GHG) emissions come from our upstream and downstream value chain, which is classified as scope 3 emissions. As a result, our main priorities for achieving Net-Zero center on our product designs and how they are used by our customers. Emissions from our own operations contribute just 1% to our overall GHG inventory.

Detailed information on our strategic priorities to address GHG emissions are outlined in the transition plan on page 50-52, along with related policies, actions, and targets outlined in the E1-E5 sections. GHG emissions across

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Scope 3 GHG emissions

99% of Nilfisk's GHG emissions come from the upstream and downstream of the value chain.

Transition plan for scope 3

Nilfisk has identified four main levers to reduce scope 3 GHG emissions and mitigate climate change.

Three of these levers are within our direct influence:

  • Product energy efficiency improvements
  • Switching the energy source used in products
  • Use of low-carbon materials in our products

The fourth lever, decarbonization of the electrical grid, is largely driven by external factors beyond Nilfisk's control. While we monitor progress and adapt accordingly, this lever depends on systemic changes in the energy sector.

The currently identified feasible levers reduce emissions by 650,000–700,000 tonnes, leaving a gap to meet our long-term scope 3 target. We will develop additional levers, such as supply chain decarbonization and shifting our product portfolio to become more energy-efficient. Backed by increased market demand, these levers help close the gap.

Policies, targets, and diverse actions are leveraged to ensure effect on these levers. Activities are primarily concentrated in our product development processes, demonstrating ongoing investment in climate change mitigation. The activities are budgeted following the general budgeting process. Details on activities can be found in the detailed sections on environment.

Three of the levers address the product use phase, which is the largest contributor of GHG emissions. The fourth lever, using low-carbon materials in our products, addresses purchased goods and services.

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Scope 1 and 2 GHG emissions

1% of Nilfisk's GHG emissions come from our own operations.

Distribution Center Energy efficiency at sites Renewable electricity at sites Levers to reduce GHG emissions in scope 1 and 2 Four main decarbonization levers have been identified to reduce our scope 1 and 2 GHG emissions: Own operations

Transition plan for scope 1 and 2

Nilfisk has identified four decarbonization levers to reduce scope 1 and 2 emissions and mitigate climate change.

Three of these levers are within our own direct influence:

  • Switch to electric vehicles in our fleet
  • Energy efficiency at sites
  • Renewable electricity at our sites

The fourth lever, decarbonization of the electrical grid, is largely driven by external factors beyond Nilfisk's control. While we monitor progress and adapt accordingly, this lever depends on systemic changes in the energy sector.

By 2040, these levers are expected to reduce Nilfisk's scope 1 and 2 emissions by 9,000–10,000 tonnes CO2eq, with roughly a third of the reduction resulting from grid decarbonization. We will continue to seek future opportunities to fully achieve our long-term targets.

Policies, targets, and actions are leveraged to ensure effect on these levers. The activities span our facility optimization processes and our vehicle fleet activities. The activities are budgeted following the general budgeting process. Details on activities can be found within the detailed sections on environment.

Additional information on transition plan

For more details on resources allocated to climate change mitigation, see section on page 54.

Locked-in emissions at Nilfisk come from natural gas used in the rotomolding machines, which have lifespans of over 20 years. Nilfisk invests in improving the energy efficiency of these machines and will consider electric replacements when due for renewal.

Nilfisk will continue to monitor and increase its share of Taxonomy-aligned activities as more sustainable products are introduced.

Nilfisk is not excluded from the EU Paris-aligned Benchmarks.

The transition plan forms part of ensuring that our products meet our customers' requirements.

Nilfisk's transition plan is validated by the Sustainability Committee and reviewed annually by the Audit Committee.

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E1 Climate change

E2 Pollution

E3 Water

F5. Resource use and circular economy

Towards Net-Zero GHG emissions in 2040

In 2025 Nilfisk strengthened its decarbonization ambition by committing to achieve Net-Zero emissions across our value chain by 2040.

Target

Nilfisk's Net Zero target, validated by the Science Based Targets initiative (SBTi) in 2025, includes both near- and long-term targets on scope 1 and 2, and scope 3 emissions. All targets are aligned with the 1.5°C pathway, reflecting our commitment to climate science and global sustainability standards.

Nilfisk is committed to reducing scope 3 GHG emissions by 42% by 2030 and 90% in 2040. Nilfisk also targets a 50.5% reduction in scope 1 and 2 emissions by 2030, and 90% by 2040.

In 2025, Nilfisk recalibrated its science-based climate targets to a 2021 baseline and extended the target year from 2030 to 2040, ensuring alignment with our Net-Zero ambition.

Performance

Nilfisk is on track on the planned trajectory towards Net-Zero, aligned with our climate change transition plan.

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Climate change mitigation and energy

Material IRO

Nilfisk has identified an actual negative impact on the environment from our GHG emissions, covering the use of energy in 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 GHG emissions, targets, governance, activities, and GHG accounting approach.
  • Energy efficiency: outlines ambitions and activities for siteand product energy efficiency, accounting principles, and governance. Updated in 2025 to include the new Net-Zero target.
  • Renewable energy deployment: sets the ambition to deploy renewable energy and prioritizes renewable energy options.

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

We monitor our scope 1, 2, and 3 emissions on a monthly basis and report quarterly to the Nilfisk Sustainability Steering Committee and the Audit Committee.

Code of Conduct

Nilfisk's Code of Conduct rule number 6, Climate & Environment, governs activities related to climate change mitigation and energy. Read more in section G1 - Business conduct.

Vehicle Policy

Nilfisk has a Global Vehicle Policy, owned by the Fleet category manager in Indirect Sourcing. Reviewed annually, it sets guidelines for lowering fleet emissions with regionspecific electric vehicle targets based on market maturity. This supports the overall reduction target for scope 1 and 2 emissions. The implementation of the policy is expected to reduce fleet emissions by at least 50% by 2030.

ACTIONS

Actions targeting reductions in scope 3 emissions

In 2025, Nilfisk actions focused on three of the scope 3 emissions reduction levers: Product energy efficiency improvements, Switching the energy source of products, and Use of low-carbon materials in our products.

Use of low-carbon materials

In 2025, Nilfisk launched and started producing several machines with post-consumer and post-industrial recycled plastics: the vacuum cleaners VP300, VP400, VP500, VP700 and Thor R, and the floorcare machines SC550, AS530R and SW3000. The 'section on Resource inflow' contains more details on our recycled plastics ambition.

Switch of product energy source

Nilfisk during 2025 developed and announced the new MH3-5 series with a boiler compatible with a specific type of biofuel, HVO (Hydrotreated Vegetable Oil). This enables future broader use of biofuels by our customers, an important delivery in enabling the switch of product energy sources.

Expanding product portfolio on energy efficiency

The announcement of the MH3 - MH8 series also addresses the lever of energy efficiency. By introducing a new boiler, this product will save an average of 4% energy compared to the previous boiler in the series.

In 2026, we will expand our product portfolio with additional energy-efficient products, while extending the use of recycled plastics. Moreover, we will increase our knowledge on recycled materials to support decarbonization, focusing on the perspectives in low-carbon materials and design alternatives.

Actions targeting reductions in scope 1 and 2 emissions

Nilfisk is taking action on three categories of decarbonization levers: Switch to electric vehicles in our fleet, Site energy efficiency activities, and Renewable electricity at our sites.

Switch to electric vehicles

In 2025, Nilfisk increased the share of electric vehicles in our fleet to 14% from 9% in 2024. In 2026, we will continue deploying electric vehicles per the Global Vehicle Policy, aiming to reduce fleet emissions by minimum 50% by 2030, compared to 2021.

Site energy efficiency

Nilfisk reduces energy use at its production sites annually. In 2025, efforts focused on optimizing rotomolding, door insulation, and upgrading heating equipment. In 2026, plans include further improvements to molding processes and heating, and assessing the possibility to expand the installation of on-site solar panels. Energy efficiency activities will be extended to non-production sites before 2030.

In 2025, Nilfisk consolidated two Hungarian production facilities and relocated to a site that meets LEED Gold standards for energy efficiency. The full impact of these initiatives on energy savings is expected to be realized in 2026.

Renewable electricity at our sites

Nilfisk is increasing the use of renewable electricity at our sites. In 2025, our facilities in Italy and China continued to consume on-site solar electricity. In addition, Energy Attribute Certificates (EACs) were purchased to cover 100% of the electricity use of Nilfisk's manufacturing sites. These actions led to an emissions reduction of 3,062 tonnes in 2025, with a similar reduction expected in 2026.

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Utilizing renewable electricity through EACs supports the reduction of scope 2 emissions and helps achieve Nilfisk's scope 1 and 2 targets. From 2024 to 2025, the share of renewable electricity from EACs and solar panels increased from 52% to 62%. This aids in mitigating the negative impact identified from use of fossil energy. EACs stem from wind or solar farms, and originate from the same country they are consumed in.

From 2026, this lever will be further extended to nonproduction sites, starting from defining the renewable electricity sourcing strategy for those sites.

Renewable electricity consumed at Nilfisk sites

Distribution of energy sources

  • On-site solar panels
  • Grid electricity

Nilfisk awarded a CDP climate score of 'A'

Nilfisk has reported under the climate change category of CDP for several years. In 2025 we improved our score to 'A' from 'A-' in 2024. Reporting on climate cuts across GHG emissions scopes, and encompass a wide range of actions, including reducing GHG emissions, implementing science-based targets, and enhancing transparency on climate-related risks and opportunities. The improvement reflects strengthened governance, deeper integration of climate considerations into business strategy, and more comprehensive disclosure aligned with best practice.

RESOURCES

In 2025, Nilfisk's total R&D spend amounted to 36.4 mEUR. Of this, 9 mEUR was invested in product development, including initiatives to reduce scope 3, category 11 emissions, with 7 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 2 mEUR on these projects in 2026. This aligns with our priorities of investing in the development of new products and technologies.

Read more about our R&D projects in 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.

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.

Code of Conduct

Nilfisk's Code of Conduct rule number 6, Climate & Environment governs activities related to climate change adaptation. Read more in section G1 - Business conduct.

Climate change adaptation and environmental emergency preparedness

Nilfisk addresses climate-related risks in own operations through two complementary approaches:

Climate adaptation measures: We integrate resilience strategies into our business continuity framework, covering flood protection, thermal event protection, and disaster recovery planning for natural hazards such as tornadoes, hurricanes, and extreme storms.

Environmental emergency preparedness: Our global Standard Operating Procedure ensures rapid response to environmental incidents—such as fires, spills, or contamination—minimizing impact and safeguarding compliance.

These procedures are monitored by the Head of Global EHS and will be embedded in business continuity plans in 2026, aligned with NIS2 guidelines.

ACTIONS

In 2025, we focused on updating the physical and transition risks and opportunities related to climate through resilience analysis. The assessment of natural catastrophe risk was included in the facility selection scorecard to inform real estate selection and relocation projects on climate risks.

In 2026, further work will be done to integrate climate change adaptation actions into our governance process, enterprise risk management process, and business continuity plans, to implement measures addressing the most significant Energy Attributes Certificates (EACs) physical climate risks at our sites.

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Scope 1, 2, and 3 GHG targets

Data indicator Unit Base year
2021		 2024 2025 Near-term target 2030 Annual % target /
base year
Total scope 1 and 2, GHG emissions (market-based) tCO2eq 22,997 17,785 16,106 11,384 -50.5% -30%
Scope 3, category 1 and 11, GHG emissions tCO2eq 2,543,038 1,815,274 1,595,718 1,474,962 -42% -37%

In 2025, market-based scope 1 and 2 emissions decreased by 30% compared to the base year 2021. This reduction is 8 percentage points below the linear pathway to our 1.5˚C target. The decrease is attributed to increased consumption of renewable electricity, lower energy use due to sites closure and consolidation, warmer weather, and reduced fleet emissions from lower mileage in the US and lower emissions per vehicle.

Absolute scope 3 emissions from the use of sold products, and purchased goods and services, decreased by 37% in 2025 compared to the base year 2021. This reduction is driven by changes in the product mix towards lower emitting products.

Performance on all GHG targets are aligned with the planned trajectory towards Net-Zero and our climate change transition plan.

The US high-pressure washer business was divested on October 31, 2025, and is included in the scope 1, 2, and 3 targets, as well as reported figures for 2025 and comparative periods. From 2026, the US highpressure washer business will be excluded. Comparative figures and the corresponding targets will be restated to reflect this change in scope and will be revalidated by SBTi.

Accounting policy

The targets were defined in 2021 jointly between the Product Management, R&D, and Sustainability functions. In 2025 the targets were updated to align with a Net- Zero trajectory in 2025, and approved by the Nilfisk Leadership Team and the Board of Directors.

Nilfisk's scope 1 and 2 absolute target and scope 3 absolute 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.

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 2021 as the representative base year.

Scope 3, category 1 and 11

Nilfisk's scope 3 emissions target was defined using the absolute contraction 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. The scope 3 target covers 95.3% of the baseline year emissions, as required by SBTi.

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E1-5 Energy consumption and mix

Data indicator Unit 2024 2025
Fuel consumption from coal and coal products MWh - -
Fuel consumption from crude oil and petroleum products MWh 51,048 48,128
Fuel consumption from natural gas MWh 22,371 21,029
Fuel consumption from other fossil sources MWh - -
Consumption of purchased or acquired electricity, heat,
steam and cooling from fossil sources		 MWh 6,473 4,981
Share of fossil sources in total energy consumption % 88.9% 87.8%
Total energy consumption from fossil sources MWh 79,892 74,138
Share of nuclear sources in total energy consumption % 1.2% 1.1%
Total consumption from nuclear sources MWh 1,119 970
Fuel consumption from renewable sources MWh 97 -
Consumption of purchased or acquired electricity,
heat, steam and cooling from renewable sources¹		 MWh 8,696 9,255
Consumption of self-generated non-fuel renewable energy¹ MWh 69 73
Share of renewable sources in total energy consumption % 9.9% 11.0%
Total renewable energy consumption MWh 8,862 9,328
Total energy consumption related to own operations MWh 89,873 84,436
Energy in high climate impact sectors
Data indicator Unit 2024 2025
Energy intensity from activities in high climate impact sectors MWh/mEUR 59.11 56.87
Total energy consumption from activities in high climate impact sectors MWh 48,587 44,715
Revenue – high climate impact sectors
Data indicator Unit 2024 2025
Revenue from activities in high climate impact sectors used to calculate energy intensity mEUR 821.9 786.2
Other revenue mEUR 206.0 210.1

1 Comparative figures have been restated, due to reclassification between 'Consumption of self-generated non-fuel renewable energy' and 'Consumption of purchased electricity' of 1,017 MWh. Read more in General basis for preparation on page 95.

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.

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 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.

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

GHG emissions Milestones and target years
Data indicator Unit Base year
2021		 2024 2025 % vs. LY 2030 Annual % target /
base year
Scope 1 GHG emissions
Gross scope 1 greenhouse gas emissions tCO2eq 14,923 14,476 13,693 -5%
Percentage of scope 1 GHG emissions from regulated emission
trading schemes		 % - - -
Scope 2 GHG emissions
Gross location-based scope 2 greenhouse gas emissions tCO2eq 7,270 5,052 4,420 -13%
Gross market-based scope 2 greenhouse gas emissions tCO2eq 8,074 3,309 2,413 -27%
Significant scope 3 GHG emissions
Total gross indirect (scope 3) GHG emissions¹ tCO2eq 2,543,038 1,815,274 1,595,718 -12% 1,474,962 -37%
Percentage of GHG scope 3 calculated using primary data 85% 78% 75%
1. Purchased goods and services¹ tCO2eq 280,803 332,929 319,215 -4%
11. Use of sold products tCO2eq 2,262,235 1,482,345 1,276,503 -14%
Total GHG emissions
Total GHG emissions (location-based) tCO2eq 2,565,231 1,834,802 1,613,831 -12%
Total GHG emissions (market-based) tCO2eq 2,566,035 1,833,059 1,611,824 -12%
Scope 1 and 2 - GHG emissions (market-based)
1 Category 1 purchased goods and services has been added to the base year and comparative figures. Read more in General basis for preparation on page 95.

2 The base year for total scope 1 and 2 emissions has been updated from 2019 to 2021. Read more in General basis for preparation on page 95.

Market-based scope 1 and 2 emissions decreased by 9% in 2025 compared to 2024. The decrease is attributed to increased consumption of renewable electricity, lower energy use due to sites closure and consolidation, warmer weather, and reduced fleet emissions due to lower mileage in the US and lower emissions per vehicle.

Absolute scope 3 emissions from the use of sold products decreased by 14% in 2025 compared to 2024. This reduction is due to changes in the product mix.

Absolute scope 3 emissions from purchase of goods and services decreased by 4% due to lower spend on direct procurement.

Read more on progress on targets on page 55.

Total scope 1 and 2 - GHG emissions (market-based)² tCO2eq 22,997 17,785 16,106 -9% 14,767 -30%

Data indicator Unit 2024 2025
Manufacturing sites tCO2eq 3,873 3,097
Non-manufacturing sites tCO2eq 3,595 3,127
Fleet tCO2eq 10,318 9,882
GHG intensity based on net revenue
Data indicator Unit 2024 2025
Total GHG emissions (location-based)
per net revenue		 tCO2eq/'000 EUR 1.79 1.62

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

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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 emissionfree.

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 have 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.

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 6%.

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Pollution

Nilfisk is committed to reducing environmental impacts across the product life-cycle by 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, maturing governance and tracking of the substances.

Industrial machines often contain substances of concern, which can lead to pollution primarily at 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, posing 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

To address substances of concern Nilfisk has created a Nilfisk standard for the prohibition and declaration of substances, outlining legal and Nilfisk-specific requirements on product substances. Nilfisk suppliers are tasked to avoid using declarable substances in components whenever feasible and declare phthalates and plasticizers above 0.1% concentration.

Code of Conduct

Nilfisk's Code of Conduct rule number 6 Climate & Environment governs activities related to hazardous materials. Read more in section G1 - Business conduct.

New policy plans

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

ACTIONS

Establishing facts

To adhere to our science-based approach to sustainability, our 2025 priorities were to continue our efforts on establishing necessary data structures. During 2025 we continued a pilot

on establishing data on PFAS at product level, constituting a baseline for Nilfisk's future efforts.

From regulatory demand to product information

In 2025, the first formal PFAS stand-alone regulatory reporting requirements came into force in one of the markets we operate in. This has informed our general data classification and is new foundational knowledge for establishing data on PFAS in the Nilfisk product portfolio. Future actions will derive from the expected EU regulation on specifically PFAS.

Supplier declarations

Reducing our environmental impact from substances of concern and very high concern will be achieved only in collaboration with our trusted supplier partners. See details on supplier network, in Workers in the Value Chain page 78. As part of our supplier management process, Nilfisk in 2025 designed an adjustment to our supplier due diligence process to ensure stronger collaboration on substance declarations.

Eco-certified detergents

In 2025, Nilfisk upgraded its detergent offering to the consumer segment, with all products in Ecolabel scope now carrying the Nordic Swan Ecolabel. This shift supports enduser safety by minimizing exposure to substances of concern and reduce the risk of pollution from using our products.

Upcoming targets

Nilfisk does not currently have a target, but continuously monitors the relevance of pollution-related targets.

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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.

Improper disposal of cleaning machines may release harmful substances into the environment and contribute to broader pollution issues.

End-of-life product considerations are a maturing topic at Nilfisk. We strive to build understanding of, and take action to address pollution associated with the end-of-life phase of our products.

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 rule number 6, Climate & Environment governs activities related to pollution. Read more in section G1 - Business conduct.

ACTIONS

In 2025, Nilfisk products designed to extend product lifespans through improved serviceability and repairability, began to enter the market.

Products with life-prolonging features show strong market performance

The new VP300 and VP400 vacuum cleaners performed well in the market in 2025. A longer lifespan has been engineered into these products, so as market penetration increases, it will help lower the pollution risk associated with Nilfisk products in this category.

The new product features introduced are replaceable cords, coloring of cords to avoid breaking, and replaceable parts and accessories. The life-prolonging features were identified from co-innovation processes with customers, who identified breakage of the cords as a typical reason for retiring these vacuum types.

Product serviceability prolongs product lifetime

In 2025, the SC550 medium walk-behind scrubber dryer was made available to professional customers all over the world. This machine is engineered to last long and reduce the total cost of ownership. The benefits of designing for serviceability include extended product lifespan and a delayed end-of-life. Future products will incorporate these serviceability design principles.

Centralization of refurbishment of products

In 2025, refurbishment of machines became an area of investment, recognizing business potential and the positive effect of prolonging lifetime of our machines.

We have successfully established a dedicated refurbishment operation at the Nagykanizsa site in Hungary, in addition to our existing refurbishment sites, reinforcing our commitment to circular economy principles. During 2026 we plan to scale the initiative, and a centralized process will ensure consistent quality and efficiency across all refurbished products. Our refurbishment activities give machines a second life and reduce environmental impact. This program is a key step towards minimizing waste and delivering sustainable solutions to our customers.

Upcoming targets

Nilfisk does not currently have a target, but continuously monitors the relevance of pollution-related targets.

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Metrics

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

Substances of concern (SoC) and substances of very high concern (SoVHC)

Data indicator Unit 2024 2025
Main hazard
class 1 –
Reproductive
toxicity		 Main hazard
class 2 –
Carcinogenicity		 Main hazard
class 3 –
Hazardous to
the aquatic
environment		 Main hazard
class 4 –
Specific target
organ toxicity
– single		 Main hazard
class 1 –
Reproductive
toxicity		 Main hazard
class 2 –
Carcinogenicity		 Main hazard
class 3 –
Hazardous to
the aquatic
environment		 Main hazard
class 4 –
Specific target
organ toxicity
– single
Amount of SoC that leaves facilities as part of products tonnes 796 3 17 14 587 1 12 31
Amount of SoVHC that leaves facilities as part of products tonnes 2,915 - - - 2,635 - - -
Total amount of substances of concern and substances of very high concern
that leave facilities as part of products¹		 tonnes 3,711 3 17 14 3,222 1 12 31

1 Comparative figures have been restated. Read more in General basis for preparation on page 95.

Of the substances reported by Nilfisk, 99% leave the facilities as part of products. Of these, 98% are lead compounds found in batteries. In 2025, the amount of substances of concern leaving Nilfisk as part of products decreased by 13% due to lower amounts of batteries used compared to 2024.

The main hazard classes have been defined as:

  • 1: Reproductive toxicity
  • 2: Carcinogenicity
  • 3: Hazardous to the aquatic environment
  • 4: Specific target organ toxicity single exposure

Accounting policy

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.

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General information Environment Social Governance Additional information

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

E2 (entity-specific) PFAS

PFAS (entity-specific)

Data indicator Unit 2024 2025
Percentage of PFAS high-risk suppliers provided PFAS information % 38% 54%

The share of suppliers providing PFAS data increased by 16 percentage points due to increased supplier coverage, improving data quality.

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

Pollution from product end-of-life (entity-specific)

Data indicator Unit 2024 2025
Percentage of products sold in countries with low waste management maturity % 51% 46%

Percentage of products sold in low waste management maturity countries decreased by 5 percentage points, due to lower revenue from those countries, especially the US.

Accounting policy

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 highrisk 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

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.

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Water and marine resources

Nilfisk acknowledges the importance of responsible water usage in our products. Intelligent use of water is key to delivering high-performance cleaning while minimizing environmental impact.

Policies and actions

Water consumption from product usage

Material IRO

Nilfisk has identified an entity-specific risk from increasing customer expectations and evolving regulatory landscape related to product water usage. The risk is mitigated by targeted product and data innovation activities.

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 while reducing cost from water usage.

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

Nilfisk's Code of Conduct rule number 6, Climate & Environment, governs activities related to water. Read more in section G1 - Business conduct.

CDP – Water Security

Many of our cleaning solutions use water. In 2024, Nilfisk expanded our CDP environmental disclosures to also include reporting on water. Our commitment to CDP reflects our broader sustainability priorities and includes our ambition to manage water responsibly as a critical resource.

ACTIONS

Water-saving product features

In 2025, Nilfisk launched several products designed to reduce water consumption, and sales of products with water saving features grew. The SC550 scrubber dryer, recently launched, consumes up to 40% less water compared to models without EcoFlex technology. The new SC25 and CS7500 platforms also support water-conscious operations. These innovations reflect our commitment to resource-efficient cleaning solutions in an increasingly water-scarce world.

A continued focus on water-saving technology remains a priority. In 2025, we conducted initiatives across both the high-pressure washer and floorcare segments to better understand customer needs and gain efficiency.

New technology projects

In 2025, Nilfisk ran three technology development projects aimed at reducing water consumption in high-pressure 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.

Moving from B- to B water score in CDP

Nilfisk achieved a 'B' score for water security in 2025, an improvement from 'B-' in 2024. Reporting on water encompasses various aspects of water consumption, including the ability to reduce use of water through water recycling, and the capacity to collect and share data.

Upcoming targets

Nilfisk does not currently have a target, but continuously monitors the relevance of water-related targets.

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General information Environment Social Governance Additional information

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

Metrics

E3 Water consumption from product usage (entity-specific)

Water consumption from product usage

Data indicator Unit 2024 2025
Total water consumption from product usage m3 29,109,941 32,001,654

The water consumption from product usage increased by 10% in 2025 compared to 2024. This increase is due to changes in mix of high-pressure washers and higher volumes of floorcare machines. Water consumption from high-pressure washers represent 67% of the total water consumption of Nilfisk products.

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.

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Resource use and circular economy

Nilfisk addresses resource optimization and circular practices to minimize 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

1,280 tonnes of recycled plastics to replace virgin plastic in products by 2028

Target to be achieved by replacing 30% of virgin plastics with recycled plastics in selected products.

Progress towards 2028 target

E5 ESRS Policies and actions

Resource inflows, including resource use

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 lifespan and strengthens Nilfisk's competitiveness while mitigating material scarcity and environmental pollution.

Product Circularity Policy

Nilfisk's Product Circularity Policy encompasses six key themes aimed at reducing resource inflows and usage. Overseen by Nilfisk's EVP, Head of Products & Operations, 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 rule number 6, Climate & Environment, governs activities related to resource inflows. Read more in section G1 - Business conduct.

ACTIONS

Bringing down cost of recycled plastics

We are committed to using recycled plastics, and declare recycling levels of post-consumer and post-industrial plastics at product level. In 2025, the Nilfisk project initiated in 2024 continued, addressing technical challenges with recycled plastics and establishing processes to reduce costs and increase availability. This project will further enhance the use of recycled plastics in our products globally.

Recycled plastics in more products

In 2025, we launched six products with recycled plastics as a product feature, including the new vacuum cleaners: VP300, VP400, VP500, and VP700. These products by design contain between 20% to 40% post consumer plastics. Additional products launched with recycled plastics are: THOR R, a consumer vacuum cleaner, and the floorcare machines SC550, AS530R and SW3000. More products with recycled plastics will be launched during 2026.

When declaring the share of recycled plastics in our products, we specify the source (post-consumer or post-industrial recycled plastics) and always state the percentage based on the total plastic weight of the machine.

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In 2025, Nilfisk upgraded our detergent offering to our consumer segment. All spray bottles are updated to be made from 70% recycled materials.

Recycled plastics target and innovation roadmap

In 2024, Nilfisk established a target for recycled plastics and developed the Product Circularity Policy. In 2025, new products were launched with recycled plastics. In 2026 to stay on track with our recycled plastics target, we will revisit our roadmap. We will take actions specifically on sourcing and implementing recycled materials in products.

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 repairability, recyclability, and disposal of products and packaging waste, are key considerations for Nilfisk. Recycling Nilfisk's products increases resource reuse potential.

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 rule number 6, Climate & Environment, governs activities related to resource outflows. Read more in section G1 - Business conduct.

ACTIONS

Refurbishment and circularity in 2025

In 2025, Nilfisk accelerated its commitment to circularity through expanded refurbishment initiatives. The CirkEl project formed part of the knowledge base. Building on activities across 12 countries in 2024, we deepened our focus on Germany and the US, integrating refurbished products into rental offerings and piloting take-back contracts to extend product lifespans. Find more information on our Refurbishment activities in the section on E2 - Pollution - End-of-life.

Extending product durability from service

In 2025, Nilfisk introduced more targeted service and maintenance initiatives. This has a positive sustainability impact as regular upkeep extends the lifespan of professional cleaning equipment. Keeping a product in operation is good business for the customers and the environment.

Nilfisk actively pursues a stronger penetration of fixed service agreements in the aftermarket. Fixed service agreements assist customers in adopting preventive maintenance practices, offering peace of mind and operational stability from reduced wear, and extending machine replacement.

In some markets, take-back contracts have reached a high level of maturity, particularly in Germany, supporting an established refurbishment and rental business model. These contracts enable machines to be systematically refurbished and reintroduced to the market, supporting circularity, fast customer response, and long-term commercial performance.

Product serviceability by design

In 2025, more Nilfisk machines incorporating serviceability design principles penetrated the market. Read more in the section E2 - Pollution. Serviceability by design actively addresses waste reduction.

Nilfisk continued to prioritize repairability and recyclability data across our consumer portfolio, ensuring transparency and alignment with evolving sustainability standards and market expectations.

Also servicing non-Nilfisk machines

During 2025 we have taken targeted steps to grow our service business. In selected markets our team services all professional cleaning machines, regardless of brand. Extending the lifespan of industrial cleaning machines, irrespective of brand, adds value to our customers and supports environmental sustainability.

Packaging Waste and EPR Compliance

In 2025, Nilfisk strengthened its approach to packaging waste management by implementing a centralized data infrastructure to support Extended Producer Responsibility (EPR) compliance across all EU markets. This system enables automated tracking, reporting, and fee calculation for packaging materials, ensuring alignment with national and EU regulations.

In 2025, Nilfisk upgraded the detergent offering to the consumer segment. The new range includes nine compact 1L bottles designed to attach directly to foam sprayers or high-pressure lances, reducing waste and eliminating the need for separate containers. This efforts reflects our early exploration within sustainable packaging.

Upcoming targets

Nilfisk does not currently have a target, but continuously monitors the relevance of resource outflow-related targets.

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Progress on targets

Resource inflows targets

Recycled plastics

Base year
Data indicator Unit 2023 2024 2025 Target 2028
Recycled plastics to replacing virgin plastics tonnes 337 365 362 1,280

In 2025, the volume of recycled plastics, to replace virgin plastics, decreased by 1% compared to 2024. The development is a combination of lower sales volumes of products with recycled plastics in Europe partly offset by increased sale of products with recycled plastics in APAC. Despite the decrease in 2025, the absolute level remains in accordance with the planned trajectory towards the 2028 target.

Accounting policy

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.

Metrics

E5-4 Resource inflows

Weight of products and materials

Data indicator Unit 2024 2025
Weight of products and technical and biological materials tonnes 77,845 69,780
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 12,844
Percentage of recycled materials % 21% 18%

The percentage of recycled materials consumed is 3 percentage points lower than in 2024, due to different mix of input materials, with a lower share of purchased steel in 2025.

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.

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Data indicator Unit 2024 2025
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 4.8
High-pressure washers years 7.6 7.8
Vacuum cleaners years 7.4 7.4
Others
Repairability of products, using an established rating system		 years 6.6
Data indicator Unit 2024 6.7
2025
Average repairability rate of consumer high-pressure washers points 8.5 8.5
Average repairability rate of consumer vacuum cleaners points 6.5
Recyclable content in products and packaging 6.9
Data indicator Unit 2024
The rates of recyclable content in products % 80% 2025
80%

Repairability index improvements on consumer vacuum cleaners is due to initiative on lowering sales price and increase availability of spare parts.

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.

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S1 Own workforce

S2 Workers in the value chain

S4 Consumers and end-users

Human rights

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 time

90% employee participation in engagement survey

High engagement levels foster reliable feedback on work-life balance and form the basis for social dialogues.

Progress towards 2026 target

Health and safety

Recordable injury frequency rate below 10.5

Target is to stay below level of international benchmarks on share of recordable injuries per 1,000,000 working hours indicating employee safety.

Progress towards 2026 target

Diversity

40% of underrepresented gender in top management

To ensure equal representation in top management.

Progress towards 2030 target*

*Nilfisk's US entity is not working actively towards the global target

37.5% of underrepresented gender in Board of Directors

Target set to ensure equal representation in top management.

Progress towards 2027 target

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S1 Own workforce

S2 Workers in the value chain

S4 Consumers and end-users

Human rights

General information on own workforce

Engaging with our own workforce

Nilfisk fosters an inclusive environment that encourages employees to express feedback and concerns. This approach enhances workforce engagement and informs decisionmaking, while our Code of Conduct helps prevent adverse effects on staff

Fixed interactions drive dialogues

Nilfisk organizes global town hall meetings every quarter, holds yearly engagement surveys, meets with work councils and health and safety committees, and conducts development conversations. These activities encourage open communication between leaders and employees, which boosts engagement, well-being, and performance.

The EVP, Head of People, Organization and Culture collaborates with the Nilfisk Leadership Team to encourage employee engagement and ensure that employee feedback is considered during decision-making.

Sedex audits on own sites

In 2024. Nilfisk introduced Sedex sustainability verification audits (SMETA) of own operation, focusing on major production sites. Our partnership with Sedex demonstrates our commitment to local sites, employees, and management. Read more on the adoption of SMETA' (Sedex Members Ethical Trade Audit) SMETA in section on Human Rights.

Remediation and channels to raise concerns

Nilfisk encourages employees to report concerns through our grievance mechanisms, including internal reporting to managers, HR Business Partners Global Compliance, 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.

We see it as a strength and expression of trust that grievance mechanisms are used by employees. The effectiveness and trust in Nilfisk's grievance mechanisms are assessed through 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

↑ Material IRO

Nilfisk has identified a risk of employee turnover and productivity loss associated with 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.

Clear working hours policy and guidelines are vital for employee well-being and work-life balance.

POLICIES

Working Hour Policy

Nilfisk's global Working Hour Policy, reviewed annually and approved by the EVP Head of People, Organization, and Culture, sets a maximum of 48 hours per week including overtime, with adjustments for local laws. Night shifts are minimized and include support and compensation when needed.

The policy complies with local and international standards, such as the EU Working Time Directive and International Labour Organization guidelines. It applies to all Nilfisk business areas except production units governed by local law.

Code of Conduct

Nilfisk's Code of Conduct rule number 8. Labor Rights. Diversity & Inclusion governs activities related to working time. Read more in section G1 - Business conduct.

Domestic Migrant Worker Policy

In 2025, Nilfisk introduced a policy ensuring fair treatment, support, and inclusion of domestic migrant workers in China. The policy sets guidelines for expectations to contractual fairness, support for families impacted by the social impact of family separation, and ensuring alignment with Nilfisk's Human Rights Policy. The owner of the policy is EVP. Head of People, Organization and Culture.

ACTIONS

Time tracking system

Nilfisk implemented time tracking systems in EU countries as required by law, with full implementation in Denmark, Hungary, Germany, and Spain in 2025. These systems help monitor deviations from the Working Hour Policy.

Monitoring work-life balance

We use our 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.

Regular reviews of time records and local HR support for employees experiencing pressure due to working hours will ensure employees working long or irregular hours are not exposed to undue risks.

SMETA by Sedex is a leading social audit on labor, working conditions, environment, ethics at the site level

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S1 Own workforce S2 Workers in the value chain S4 Consumers and end-users Human rights

Health and safety

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 effect. We recognize that failing to manage this will expose us to a financial risk.

POLICIES

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 Product & 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 of relevant sites.

Code of Conduct

Nilfisk's Code of Conduct rule number 7, Health and Safety, and rule number 10, Quality, govern activities related to health and safety of own workforce. Read more in section G1 - Business conduct.

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 the health and safety reporting system, alternatively the whistleblower system, to report any health and safety concerns. More information is available in section G1 - Business conduct.

ACTIONS

In 2025, Nilfisk continued the key initiatives launched in previous years to improve health and safety reporting, culture, and practices:

  • Promoting a proactive safety culture with near-miss reporting and online training translated to main local languages to reach most of the employees.
  • Providing targeted training on mental health, driver safety, office safety, and services, besides site specific health and safety training on the production sites
  • Enrolling all sites in the Global Health and Safety Manual
  • Supporting change management is a fast-paced changing environment.

The standard safety reports provide KPIs to track performance and inform improvement points, from which the health and safety targets are defined.

Health and safety risk management

In 2025 we successfully kept all ISO 45001 certifications at relevant manufacturing sites along with clear Sedex reports. In addition, we expanded the Global EHS team and launched a tool to create a Compliance Heatmap overseeing 80% of all employees. This tool serves to assess local governance practices aligned with the new Operating Model and compliance in Environment, Health and Safety.

ISO 45001 certifications set global standards for occupational health and safety management

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S1 Own workforce S2 Workers in the value chain S4 Consumers and end-users Human rights

Diversity

Material IRO

Nilfisk has identified an actual positive impact from diversity, social equity, and equal treatment. Policies, actions, and targets are developed to advance positive impact and to foster an inclusive workplace.

POLICIES

DE&I Policy

We recognize that a diverse workforce and inclusive culture strengthens our company. Our commitment to diversity is outlined in our Global Diversity, Equity, and Inclusion (DE&I) 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 by embracing the unique characteristics of our workforce. It promotes non-discriminatory employment practices and supports diversity through local actions.

Code of Conduct

Nilfisk's Code of Conduct rule number 8, Labor Rights, Diversity & Inclusion, governs activities related to diversity. Read more in section G1 - Business conduct.

ACTIONS

E-learning training

In 2025, Nilfisk continued its 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 2026.

Diversity in recruitment

In 2025, we reinforced our commitment to inclusive and fair recruitment practices, recognizing that attracting the bestqualified candidates requires access to a broad and diverse talent pool. Our recruitment strategy is designed to minimize bias and support objective decision-making at every stage of the hiring process. To further this commitment, we have developed guidelines for the recruitment of management positions, with the aim of identifying and selecting the most capable individuals based on their skills, experience, and potential.

Gender equality and equal pay

Material IRO

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 employee retention.

POLICIES

We are developing the foundations and data structures for relevant guidelines and continuously assessing the need for an Equal Pay Policy. Our current actions describe our approach.

Code of Conduct

Nilfisk's Code of Conduct rule number 8, Labor Rights, Diversity & Inclusion, governs activities related to gender equality and equal pay. Read more in section G1 - Business conduct.

ACTIONS

Job architecture framework

At Nilfisk, equal pay for equal work is fundamental. We ensure fair compensation based on performance, 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 2025, the unadjusted gender pay gap improved to 18% from 19% (2024) due to efforts in reducing salary disparities during merit processes, recruitments, and promotions. We continue to train and educate managers in how we work with compensation to ensure consistency and fairness and pay decisions. This is supported by updated global rewards principles as well as principles of transparency and pay equity.

Pay gap monitoring efforts

In 2025 we reviewed the Nilfisk job architecture and pay ranges, ensuring high data quality. Based on this update, we monitor gender pay gaps and plan corrective actions. While we do not have specific targets for equal pay, we continuously evaluate the need for them and will plan further actions based on 2025 outcomes. Currently, the effectiveness of these actions is not formally tracked.

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Progress on targets

Working time target

Employee engagement survey participation

Data indicator Unit 2024 2025 Target 2025 Target 2026
Employee engagement survey participation rate % 88.5% 86.0% 90% 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 2026. In 2025 participation decreased from 88.5% to 86.0%, which was slightly below the target of 90%.

Health and safety targets

Recordable injury frequency rate

Data indicator Unit 2024 2025 Target 2025 Target 2026
The recordable injury frequency rate (TRIFR) Rate 5.7 5.6 Below 10.5 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 2025, the recordable injury frequency rate was 5.6, which was well below the target due to preventive measures in the manufacturing sites.

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 one global employee engagement survey 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, in the reporting year. Participation is recorded directly in the online employee engagement tool, from where data is collected. The target has been set in in consultation with key internal stakeholders.

Number and rate of recordable work-related injuries

The number of cases resulting in a recordable injury, as reported through Nilfisk's Safety Incidents application. The Recordable injury 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)

Diversity targets

Gender diversity at top management levels

Data indicator Unit 2024 2025 Target 2026 Target 2030
Male % 69% 69% 66% 60%
Female % 31% 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 2025, the share of the underrepresented gender in top management stayed at 31% which is in line with expectations for the overall trajectory towards the 2026 and 2030 target.

Nilfisk monitors its gender diversity targets on a quarterly basis, and results are presented to the Nilfisk Leadership Team. For accounting policies related to this target, see S1-9 in the Metrics section.

Gender diversity in the Board of Directors

Data indicator Unit 2024 2025 Target 2027
Underrepresented gender % 14% 17% 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 2027.

During 2025, one male member left the board, reducing the total number of board members to six, and thereby increasing the share of the underrepresented gender to 17% which is in line with expectations toward the 2027 target. The female to male representation of shareholder elected board members is 20%.

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.

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Metrics

S1-6 Characteristics of Nilfisk's employees

Headcount per gender and category
2025 Unit Female Male Other Not
disclosed		 Total
Permanent employees Number 1,106 2,954 1 9 4,070
Temporary employees Number 120 206 - 59 385
Non-guaranteed hours employees Number - - - - -
Total employees Number 1,226 3,160 1 68 4,455
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

Total headcount decreased by 358, corresponding to 7%. The number of female employees decreased by 124, corresponding to 9%, while the number of male employees decreased by 246, corresponding to 7%. Hungary and China each account for more than 10% of the Nilfisk workforce. In Hungary, the employee headcount decreased by 34, corresponding to a decrease of 4% and in China employee headcount decreased by 22, corresponding to a decrease of 4%. The decrease in employee headcount is a result of implementation of structural changes and cost reduction measures in the year.

Headcount per country
Unit 2024 2025
Hungary Number 862 828
China Number 592 570
US Number 683 422
Rest of the world Number 2,676 2,635
Total Number 4,813 4,455

Employees who have left the company

2025
Number 822 1,216
% 17% 27%
% 15% 26%
Unit 2024

Accounting policy

  • 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 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 divide by two, including 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.

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S1-7 Characteristics of non-employees in the undertaking's own workforce

Headcount of non-employees

Total non-employees Number 85 87
Non-employees in own workforce - people provided by undertakings
primarily engaged in employment activities		 Number - -
Non-employees in own workforce - self-employed people Number 85 87
Data indicator Unit 2024 2025

S1-9 Diversity metrics

Gender distribution at top management levels

Data indicator Unit 2024 2025
Male Number & % 42 69% 42 69%
Female Number & % 19 31% 19 31%
Total Number & % 61 100% 61 100%

Distribution of employees by age group

Data indicator Unit 2024 2025
Under 30 years old Number & % 543 11% 513 12%
30-50 years old Number & % 2,927 61% 2,701 61%
Over 50 years old Number & % 1,343 28% 1,241 27%
Total Number & % 4,813 100% 4,455 100%

Accounting policy

Headcount of non-employees

Non-employees are contingent workers providing work for Nilfisk but not on Nilfisk payroll. Total headcount is defined as number of individuals contracted by Nilfisk, performing work for its entities at the end of the reporting period, irrespective of the extent of working hours (fulltime/part-time).

Accounting policy

Gender distribution at top management levels

Gender distribution at top management levels is calculated as the number of employees by gender, relative to the total headcount at these levels, at the end of the reporting period. Top management includes the Nilfisk Leadership Team and their direct reports with people management responsibilities, including those on leave.

Distribution of employees by age group

Age distribution is determined by the employee's date of birth, relative to the total headcount.

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 2025
Employees % 26.5% 31.4%
Non-employees % 0.8% 7.1%
Total % 27.3% 38.6%

Number of fatalities as result of work-related injuries and work-related injuries and work-related ill health

Data indicator Unit 2024 2025
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 2025
Employees Number/rate 49 5.7 44 5.6
Non-employees Number/rate - - - -

The number of work related recordable accidents improved by 10%. This result is well below the target and is due to preventive measures in the manufacturing sites.

Number of cases of recordable work-related ill health of employees

Data indicator Unit 2024 2025
Employees Number - 1
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 2025
Employees Number 1,617 1,841
Non-employees Number - -

In 2025, lost days resulting from work-related injuries increased by 14% compared to 2024. This result reinforces the importance of our continued investment in employee health, safety, and preventive risk management.

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 injuries

The number of cases resulting in a recordable injury, as reported through Nilfisk's Safety Incidents application. The Recordable injury 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.

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General information Environment Social Governance Additional information

S1 Own workforce S2 Workers in the value chain S4 Consumers and end-users Human rights

S1-16 Remuneration metrics

Gender pay gap as the average pay levels between female and male
Data indicator		 Unit 2024 2025
Gender pay gap % 19% 18%
The annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all employees
Data indicator Unit 2024 2025

S1-17 Incidents, complaints and severe human rights impact

Incidents, complaints and severe human rights impacts

Data indicator Unit 2024 2025
The total number of incidents of discrimination, including harassment Number 5 8
The total number of complaints filed through channels for people to raise concerns Number - 14

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.

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.

Accounting policy

Incidents, complaints, and severe human rights impacts

The number of incidents of discrimination as well as complaints related to working conditions, equal treatment, and other workrelated rights, within the Group's own workforce. Cases are reported through the Nilfisk Whistleblower system or internally to direct manager, HR, or Global Compliance.

The Group's formal processes are not currently designed to fully capture the ESRS-required metrics related to S1-17.

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S1 Own workforce S2 Workers in the value chain S4 Consumers and end-users Human rights

Workers in the value chain

Nilfisk 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 high-risk suppliers signed Supplier Code of Conduct

To minimize business risk and value chain worker impact.

Progress towards 2025 target

General information on workers in the value chain

This section describes Nilfisk's activities towards value chain workers materially impacted by Nilfisk's business model, namely workers in the upstream supply chain. Typically, these workers are engaged in the manufacturing industries, which in some regions associates with a potential risk of workers' rights violations. For details on protection of human rights of workers in the value chain read the section on Human rights.

Engaging with value chain workers

Nilfisk engages indirectly with value chain workers through a combination of processes.

Assessment of new suppliers

All new direct suppliers go through our Supplier Approval Procedure, which includes a range of tools, such as declarations, questionnaires and audits, designed to evaluate sustainability, legal, and compliance standards.

Supplier due diligence audits

Our primary form of engagement with value chain workers is via the Nilfisk supplier due diligence process described in the Governance section, under G1 - High-risk supplier and due diligence processes.

As part of this process, we rely on on-site audits conducted by either our own supplier auditor or an independent third party. Such audits generally include interviews with focus groups of suppliers' employees that provide us with insights into worker perspectives, particularly those vulnerable due to the nature of their work or location.

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 that also benefit workers in the value chain.

Remediation and channels to raise concerns

Workers in Nilfisk's value chain can make use of existing channels to interact with Nilfisk. Read more about remediation and channels to raise concern in section G1 - Business conduct.

Supplier Code of Conduct

The Supplier Code of Conduct sets clear expectations for our suppliers and business partners. It requires that their employees can report concerns through the suppliers' grievance mechanisms or Nilfisk's whistleblower system. In 2025, no violations of human rights issues have been reported or identified.

Whistleblower Policy

Nilfisk's Whistleblower Policy provides our value chain workers with a safe reporting mechanism, assuring 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.

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S1 Own workforce

S2 Workers in the value chain

S4 Consumers and end-users

Human rights

Policies and actions

Value chain workers

1 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 exposes 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 upstream value 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 global indirect suppliers.

POLICIES

Nilfisk Sustainable Sourcing Policy, overseen by EVP, Head of Sourcing, is designed to ensure that our suppliers adhere and contribute to Nilfisk in operating as an honest, fair, safe and responsible company. The policy describes ambitions, standards, and processes designed to ensure sustainable behavior throughout the supply chain.

Other policies related to our value chain workers encompass the Supplier Code of Conduct and Human Rights Policy. Read more in G1 - Business Conduct and Human Rights section.

ACTIONS

Actions towards suppliers

We are committed to creating decent jobs within our value chain and in 2025 continued the newly established process of independent SMETA Audit (Sedex Members Ethical Trade Audit) for selected suppliers. We continue the dialogue with ensuring our key supplier signing with our Supplier Code of Conduct.

The section on high-risk suppliers and due diligence processes in the G1 - Business Conduct section, outlines our risk-based due diligence process to ensure ethical, environmental, and social compliance across the supply chain.

Progress on targets

Value chain workers

Share of high-risk suppliers signed Supplier Code of Conduct

Data indicator Unit 2024 2025 Target 2025 Target 2026
Minimizing business risk and value chain worker impacts by selected
suppliers signing Supplier Code of Conduct % N/A 78% 70% N/A

In 2024, Nilfisk introduced a Supplier Code of Conduct. The Supplier Code of Conduct defines the minimum expectations Nilfisk places on all global suppliers of products and services. It is legally incorporated by reference into supplier agreements. The target for 2025 has been achieved, and a new target is being considered as part of a new supplier management process.

Accounting policy

High-risk suppliers signed Supplier Code of Conduct

High-risk suppliers are defined using Sedex risk assessment methodology. Target has been set with input from key internal stakeholders.

SMETA by Sedex is a leading social audit on labor, working conditions, environment, and ethics.

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S1 Own workforce

S2 Workers in the value chain

S4 Consumers and end-users

Human rights

Consumers and end-users

Nilfisk prioritizes customer health and safety by developing ergonomic and safe cleaning solutions. These innovations enhance working conditions, address labor shortages, and reduce costs in the professional cleaning industry.

Targets

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 2026 target

Privacy

100% of new office employees to receive phishing training within three months of onboarding

Trainings will uphold our defense against cyber threats.

Progress towards 2026 target

General information

This section describes Nilfisk's position and activities towards consumers and end-users materially impacted by Nilfisk's business model. Typically, end-users are engaged in cleaning activities, either as their primary, secondary or tertiary job responsibility.

For details on protection of the human rights of consumers and end-users read the section on Human rights.

Engaging with customers

On a daily basis we are in contact with both our customers and our end-users. We engage with customers to understand and address their needs. We harvest insight via our sales and service teams in all markets, directly from customers, and from our Customer Insights processes. The insights feed into our product and service design process, as well as our quality assurance processes.

Remediation and channels to raise concerns

Customers and end-users can make use of existing channels to interact with Nilfisk. Read more about remediation and channels to raise concern in section G1 - Business conduct.

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S1 Own workforce S2 Workers in the value chain S4 Consumers and end-users Human rights

Policies and actions

Security of a person and health and safety

Material IRO

Nilfisk has identified a potential negative impact to the 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.

We help our customers solve real-world cleaning challenges while reducing our impact on people and the planet. Nilfisk is committed to ensuring the health and safety of our customers' operators, proactively preventing accidents, and maintaining secure working environments. Our cleaning solutions keep every environment safer.

POLICIES

Customer Health and Safety Policy

Our Customer Health & Safety Policy is central to delivering high-quality cleaning solutions while ensuring customer wellbeing. This policy, overseen by the EVP, Head of Operations and General Counsel, Head of Legal & Compliance, 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 Head of Global Quality and VP of Legal oversee our formal product incident management process.

Code of Conduct

The Code of Conduct rule number 10, Quality, governs our activities on product certification and quality rules. Read more in section G1 - Business conduct.

ISO 9001 Quality Management

The implementation of our Customer Safety & Health Policy is anchored in our ISO 9001–certified Quality Management System, owned by Global Quality. The system undergoes annual surveillance audits and a comprehensive recertification every three years, ensuring that product safety controls, incident handling, and corrective actions are consistently executed and continually improved.

PROCESSES

Our processes are designed to protect people, prevent harm, and promote well-being, whether in product development, manufacturing, or day-to-day use.

End-user safety embedded in Nilfisk Product Design

End-user safety is built into every stage of our product development, not added as an afterthought. Rigorous risk assessments, compliance with international standards, and user-driven testing, ensures that our solutions are intuitive, ergonomic, and safe to operate. This approach, combined with integrated training and third-party certifications, safeguards the well-being of those who use our products.

Insights from customers

Customer insights and product feedback are integral to our development and quality assurance processes. This active dialogue informs improvements and identifies opportunities, ensuring our solutions are in line with user needs and optimized for convenience, comfort, safety and efficiency.

Safety by design

At Nilfisk we design with people in mind. Our experience tells us that a comfortable and safe user experience is a key prerequisite for optimal product utilization, cleaning performance, and efficiency. Our cleaning solutions are designed so that they are:

  • Simple easy to understand and use efficiently, and safely
  • Intuitive guiding correct and safe control and interaction
  • Ergonomic caring for the comfort, health and wellbeing of the individual user

Quality from high testing standards

We apply strict quality assurance to ensure product safety. Every facility follows rigorous controls so products meet or exceed standards. Reliability is verified through independent third-party testing and certification. Continuous improvement is driven by regular protocol updates informed by customer feedback and industry developments.

Personal safety from end-user training

Safe product usage begins with knowledge. We provide comprehensive training and ongoing support for end-users, empowering them to operate our solutions confidently and responsibly. This ensures that our products not only deliver clean environments but also safeguard the people who use them.

ACTIONS

New product launches focusing on end-user safety

2025 saw the market penetration of the SC550 machine, a walk-behind scrubber dryer with built-in safeguards. It offers intuitive user interface adapting to a wide rage of skill levels and languages of users. The SC550 is user-friendly, minimizes physical effort, maximizes productivity, and operates quietly, making it suitable for noise-sensitive environments.

The Nilfisk Dryft, a micro-scrubber dryer, features a flexible and ergonomic design for user comfort.

The VP30O and VP400 vacuum cleaners launched with orange cords to address the risk of trip hazards while operating the machine. This product feature was developed based on collaboration with customers on identifying and solving operating pain points.

ISO 9001 certifications set global standards for quality management.

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S1 Own workforce S2 Workers in the value chain S4 Consumers and end-users Human rights

Privacy

Material IRO

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 outlines our approach to managing information security risks and is informed by principles from ISO 27001. 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 supports responsible reporting of security problems for fast resolution. Overseen by the Chief Information Security Officer (CISO), it facilitates external reporting of system vulnerabilities.

Code of Conduct

Nilfisk's Code of Conduct rule number 11, Information Security governs activities on IT safety and data privacy, ensuring the protection of company, customer, and employee information across digital platforms.

Read more about our Code of Conduct 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.

To keep customer data safe, all employees complete ongoing cyber security training. The training uses AI and behavioral science for personalized learning

ACTIONS

Extra cyber security training

In 2025, we added extra mandatory information security training for office workers due to their higher risk.

Strengthening of Information Security Management System

As part of preparation for the Network and Information Security Directive (NIS2) audit in 2026, the policies, standards and processes of the Information Security Management system has been enhanced to meet NIST 800-53 rev 5 requirements.

Winner of Cyber resilience interplay

Nilfisk won a pilot participation with ENISA's EUCC interplay to Cyber Resilience Act compliance, which helps enhance the security maturity of our products with digital elements.

Progress on targets

Privacy

Phishing training Data indicator Unit 2024 2025 Target 2025 Target 2026 New office employees who received phishing training within three months of their onboarding % 87% 85% 100% 100%

To enhance information security, Nilfisk aims to ensure that 100% of office employees receive phishing avoidance training. In 2025, 85% of new employees completed phishing training, which was below the target for 2025. 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 2025 Target 2025 Target 2026
Number of product recalls number 0 0 0 0

Nilfisk has set an annual target of zero product recalls, which was achieved in 2025 in line with ambition. Consequences of a product recall, based on the level of risk, will be discontinuation of the shipment of a product or activation of 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.

Accounting policy

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. A product recall would be informed by 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 campaig cleaning solutions. These innovations enhance working conditions, address labor shortages, and reduce costs in the professional cleaning industry

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Human rights

Human and labor rights position

Nilfisk Human Rights Policy, which includes a strong commitment to labor rights, applies throughout our value chain from own employees to workers in value chain and customers and end-users.

Our work with upholding human rights, including labor rights, is outlined in our policies: Human Rights Policy, Supplier Code of Conduct, Sustainable Sourcing Policy, Health and Safety Policy and Customer Health and Safety Policy. Nilfisk prioritizes actions based on material topics identified in the Double Materiality Assessment (DMA). The DMA details that human rights issues always receive a scale score of five in alignment with the salient human rights principle.

The Nilfisk Human Rights Policy emphasizes the importance of informing and training employees, business partners, and other key stakeholders about Nilfisk's human rights commitments. It 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 Specialty Business Units, Marketing & Sustainability, and the EVP, Head of Products & Operations for value chain workers and customers and end-users.

Human rights of own work force

In extension to the Nilfisk Human Rights Policy, related social policies include the Nilfisk Policy for Working Time, Labor and Employee Rights, Privacy, Health & Safety, Diversity, and Equity and Inclusion.

The above policies detail our commitments to the following human rights topics considered material to our own workforce:

  • Right to life and security of person
  • Right to just and favorable conditions of work
  • Freedom from discrimination
  • Right to equal pay for equal work

Sedex audits of own sites

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

Sedex audits support Nilfisk in adhering to local legislation and international labour standards. Audit reports are available to our customers upon request to enhance transparency.

With large production sites in China and Mexico, we operate in countries with present risks of human trafficking, forced labor, and child labor. The Nilfisk Human Rights Policy clearly guides and strictly prohibits any violations related to these issues.

Human rights of workers in the value chain

Our Human Rights Policy and Sustainable Sourcing Policy outline our commitment to respecting and protecting human rights throughout our value chain. They also detail our due diligence approach and efforts towards respecting the following topics considered material to workers in the value chain:

  • Right to life and security of person
  • Right to just and favorable conditions of work
  • Freedom from discrimination
  • Freedom from torture or cruel, inhuman, or degrading treatment

Supplier Code of Conduct

Our Supplier Code of Conduct, released in 2024, is available on our website and is also sent to our suppliers for signature as part of our Supplier approval procedure. The policy aligns with the Nilfisk Code of Conduct, providing clear guidelines on Climate, Environment, Health & safety, Diversity & inclusion, Labor rights and Governance topics. If non-compliances are discovered through one of our monitoring channels, Nilfisk aims to work with the supplier to improve performance, or if necessary, end the collaboration. The SVP, Head of Strategic Sourcing, owns this policy.

Supplier Sedex audits

Nilfisk supplier due diligence process described in the Governance section, under G1, High-risk supplier and due diligence processes, include on-site audits. The audits provide insights into worker perspectives, particularly those vulnerable due to the nature of their work or location.

Human rights of customers and end-users

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 life and security of person

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G1 Business conduct

Business conduct

As a global company, business 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.

Progress towards 2026 target

90% of employees to receive Code of Conduct training

To ensure Nilfisk acts in accordance with its Code of Conduct.

Progress towards 2026 target

Corruption and bribery

25 supplier audits to be conducted

To ensure insights and collaboration with high-risk suppliers.

Progress towards 2025 target

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.

Nilfisk reports 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

  • Diversity and inclusion

  • Product certification

  • Quality

Ownership and execution

The Code of Conduct is approved by the Board of Directors and the Legal & 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 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 as of the end of 2025. Beginning in 2026, the implementation of all Nilfisk Governance Framework rules will be assessed annually. Implementation gaps will be identified and addressed within fixed timelines.

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information

G1 Business conduct

Our Sustainable Sourcing Policy outlines our risk-based due diligence process that prioritizes high-risk suppliers for enhanced assessment, collaboration, and remediation to ensure ethical, environmental, and social compliance across the supply chain.

The different risk areas, such as sustainability, legal, regulatory or finance, are investigated and managed in collaboration with the respective departments within Nilfisk.

Our due diligence process includes a combination of activities such as signing our Supplier Code of Conduct and various regulatory declarations, completing in-house questionnaires, participating in visits by our supplier auditor and undergoing third-party audits.

When an issue is identified through any of these processes, we first aim for collaboration with the supplier to remediate the matter and support long-term improvements. If we see that long-term improvements are not possible, we also reserve the right to terminate the business relationship with the supplier.

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 Legal & 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 Legal & 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 Legal & 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. Members of senior management review relevant reports on a need-to-know basis.

The Legal & Compliance team 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 Legal & Compliance Team, if appropriate. Upon finalizing investigations, Nilfisk takes action on a caseby-case basis within the scope of our capabilities.

Training

In Q4 2023, Nilfisk launched its internal Learning Management System (LMS). By the end of 2025 92% of Nilfisk's global workforce had completed the mandatory Code of Conduct training online in one of the eight available languages or inperson in local language.

During 2025, a process was implemented to ensure that all new hires are either automatically enrolled in the online Code of Conduct training or receive a copy of the document in their local language. All new hires are required to either complete the training within 30 days of their start date, or acknowledge receipt of the document within the same time frame.

From 2026, all Nilfisk employees will be required to take Code of Conduct training every two to three years.

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information

G1 Business conduct

Corruption and bribery

Material IRO

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.

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 more frequent. High-risk markets are identified based on Transparency International's Corruption Perception Index.

Integrity Policy

In 2025, Nilfisk continued to comply with global anticorruption laws through its Integrity Policy and the anticorruption rule number 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.

Potential breaches can be reported via the whistleblower system. All reports follow the Code of Conduct investigation process led by Nilfisk's Legal & Compliance team.

Protection of whistleblowers

Material IRO

Nilfisk has identified a risk of fines and negative reputational effects for 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 are key.

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 antiretaliation, 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.

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information

G1 Business conduct

Business conduct and corporate culture targets

EcoVadis and Code of Conduct training

Data indicator Unit 2024 2025 Target 2025 Target 2026
EcoVadis rating Rating Gold Gold Gold Gold
Code of Conduct participation rate % 63% 92% 90% 90%

EcoVadis: Nilfisk uses 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 fourth consecutive year in 2025, which was in line with the target.

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. We launched the Code of Conduct training in late 2023 and released local language versions in the seven most predominant languages in 2024. The 2025 performance of 92% was above the 90% target for 2025. The target has been set by the Head of Compliance and is monitored annually.

Corruption and bribery targets

Supplier audits

Data indicator Unit 2024 2025 Target 2025 Target 2026
Number of supplier audits conducted Number 25 27 25 N/A

Nilfisk has established a comprehensive supplier due diligence process, in which we require selected suppliers to undergo audits. Through these audits, we or a third-party collaborate with them to mitigate their negative impacts on employees and the environment, enhancing our business resilience and reducing the risks of corruption and bribery. In 2025, Nilfisk's supplier auditor conducted 8 on-site audits. In addition 19 suppliers were audited by third-party auditors. This was above the target of 25 supplier audits conducted in 2025. A new target is being considered as part of a new supplier management process.

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 supplier audits during the reporting year.

All targets have been set in consultation with key internal stakeholders.

Metrics

G1-3 Prevention and detection of corruption and bribery

Percentage of at-risk-functions covered by training programs

Data indicator Unit 2024 2025
Training coverage
Percentage of functions-at-risk covered by training programs % 57% 72%
Percentage of functions-at-risk receiving training % 38% 69%

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

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 2025
Convictions for violation of anti-corruption
and anti-bribery laws		 Number - -
Amount of fines for violation
of anti-corruption and anti-bribery laws		 Number - -

Accounting policy

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.

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Additional information

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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

The Double Materiality Assessment (DMA) covers Nilfisk's 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 use phase, and product end-of-life, including refurbishment and resale activities. Nilfisk's own operations encompass primary activities such as inbound logistics, operations, outbound logistics, marketing, sales, and service, as well as support activities such as finance, technological development, HR management, and sourcing.

To ensure the inclusion of key stakeholders along the value chain, Nilfisk conducted a stakeholder mapping. Key groups 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. As per the DMA process design, input was gathered via focused workshops and individual

interviews with internal subject-matter experts (SMEs) from across the business. Internal SMEs serve as proxies for external stakeholders. The topics discussed were used to create a longlist of IROs, which was cross-checked with ESRS sub-topics and sub-sub-topics. All IROs were assessed on a gross basis.

Environment-related IROs

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

Governance-related IROs

Governance-related IROs are identified based on inputs from Nilfisk's Compliance team, leveraging their expertise and referring to internal policies. The assessment involves evaluating regulations such as the EU Whistleblower Directive, the UK Bribery Act 2010, and the Foreign Corrupt Practices Act, and current EU anti-corruption legislation, as well as the OECD Guidelines on Multinational Enterprises.

Gross list of IROs

Additional relevant ESRS topics and entity-specific topics not identified in the interviews, workshops, resilience analysis, nor in the climate-related screenings were subsequently added by SMEs, resulting in a gross list of Nilfisk IROs. For each IRO, a stakeholder and approving SME were identified. External stakeholder views were incorporated through SMEs acting as

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meaning that likelihood is not considered for human right impact categories.

DMA General basis for preparation EU Taxonomy ESRS Data points Statement on sustainability

proxies, such as Customer Care, HR, Regulatory Affairs, and Legal. Nilfisk's continuous engagement with stakeholders provides the basis for assessing the most material IROs. Read more in the Stakeholder Engagement section.

Impact, risks, and opportunities assessment

Based on the gross list of IROs, separate scorings have been conducted from suitable methodology dependent on the nature of the IRO (either/or or both/and impact, and a financial risk and opportunity perspective). The scoring was performed in collaboration between Sustainability and Finance.

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 for potential impacts. See the table on the right for further details.

Financial risks and opportunities assessment

In the financial materiality assessment, financial risks and opportunities derived from assessed impacts and independent sustainability-related risks and opportunities are considered. The scorings are based on the potential financial magnitude and likelihood of occurrence. The nature and

magnitude of financial effects in different scenarios were assessed based on assumptions and input parameters from SMEs.

Thresholds

If an IRO receives a total score of medium or higher, it is considered material to Nilfisk. Consequently, the associated ESRS standard, along with all relevant disclosure requirements and data points, are also deemed material. From the updated thresholds ESRS S3 - Affected Communities and ESRS E4 - Biodiversity have become immaterial topics.

Stakeholder verification

After finalizing the scores for all IROs, a consolidated overview of the outcome was reviewed by the identified SMEs for each respective IRO.

DMA finalization

A consolidated conclusion of the DMA has been presented to and approved by the Sustainability Committee (on behalf of the Nilfisk Leadership Team) and the Audit Committee. The DMA resulted in 42 material IROs across 8 ESRS topics and 16 sub-topics and serves as a list of material topics to Nilfisk that are continuously prioritized and monitored. The detailed IRO outcome is found on pages 45-47.

Changes to the 2024 DMA Approach

The first ESRS-aligned DMA for Nilfisk was carried out in 2024. In 2025, Nilfisk updated the DMA to reflect changes in geopolitics and the company's outlook. As a result, Nilfisk reviewed its scoring criteria and raised financial thresholds to better match the current financial risks and improved data. These updates led to adjustments in the list of topics included compared to 2024.

Impact assessment Financial risks and opportunities assessment
Scale Defines the magnitude of impact on people
or the environment, where the salient human
rights principle is given precedence, and
these are per definition scored at the highest
possible level in scale.		 Financial
magnitude		 The potential financial effects assess the
impact on EBIT if a risk or opportunity
materializes. These are divided into:
• Tangible financial effects: Actual
financial risks that had occurred and are
measurable.
Scope Defines how widespread the impact is,
based on the number of individuals affected
or the extent of the environmental impact.
Nilfisk has defined parameters such as the
percentage of sites in scope, employees
affected, and supplier spend to determine the
scope coverage.		 • Intangible financial effects: Potential
financial impacts based on assumptions,
including reputational, operational,
employee retention, and compliance
related effects.
Irremediable
character		 Describes the extent to which the impact can
be remediated. This assesses the difficulty in
remediating the negative impact in terms of
cost and time horizon.		 Likelihood The likelihood of occurrence is assessed
based on past occurrences or awareness of
future occurrences (e.g. knowledge of future
legislation).
Likelihood
(potential
impact)		 For potential (and not actual) impact
categories, likelihood was added as an
additional scoring parameter. For human
rights impacts, the human rights salience
principle applies precedence over likelihood,

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Environmental topics

Environmental issues remain central to Nilfisk's sustainability efforts. Enhanced documentation and topic mapping show that site-level impacts and risks are minor compared to those across the broader value chain.

Due to low water use and waste generation at Nilfisk sites, site-level IROs for water and waste are no longer considered material. These issues are managed through standard business processes and ongoing governance, with continued monitoring. Water remains material at the product level.

Social topics

Some key changes to the DMA method include a more simple scoring approach to social topics. Nilfisk involved more local HR staff in interviews and used third party SMETA audits to better identify important issues in the value chain. By including more stakeholders and using both internal audits and third-party reviews, Nilfisk built a stronger basis for assessing social impacts.

Reporting in 2024 and reviewing the DMA in 2025 helped Nilfisk learn and improve. The company fine-tuned its focus to highlight which topics are most important to its business and value chain, allowing it to target policies and actions where there are greater risks.

Governance topics

Governance topics continue to be core to business. Governance remains a foundational element of Nilfisk's business conduct. The current approach is consistent with global best practices, and no changes have been made to the relevance and materiality of governance topics.

Resilience analysis

Nilfisk has conducted a resilience analysis based on insights from our climate risk assessment, focusing on both physical and transition-related climate risks.

The analysis evaluates Nilfisk's exposure to climate-related events divided into two categories: physical and transitional risks. Physical climate risk includes site-specific exposure, sectorial risks along the value chain, and downstream impacts. Transitional risks encompass market, policy, reputation, and technology risks.

The findings of the resilience analysis have informed Nilfisk's Double Materiality Assessment (DMA), identifying material physical and transitional climate risks across our upstream value chain, operational sites, and global activities. Our material Impacts, Risks, and Opportunities (IROs) related to climate change are linked to climate change mitigation, adaptation, and energy. In 2025, the 2024 climate risks results were reviewed and updated.

Resilience Analysis

Resilience to physical risks

Nilfisk faces exposure to physical risks both at sites and in our value chain.

Sites: Nilfisk's sites are exposed to physical climate risks, mainly 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 equally 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.

The assessment is based on RCP Climate scenarios commonly used to model climate risks over short, medium, and long-term horizons.

Value chain: Nilfisk faced low-medium physical risks in its upstream value chain. Nilfisk's dual sourcing process builds resilience against supply chain disruptions. By 2050, the sectors "Container and Packaging" and "Automobile components" have a medium-high risk of being impacted by climate hazards in the high-emissions scenario.

Resilience to transition risks

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 prepares for this scenario by developing low-carbon products which will mitigate the impact of these taxes.

Technology risk: Based on exposure to the EU taxonomy and the transitioning to low-carbon 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.

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

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

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Stakeholder engagement

Interests and views of stakeholders

The best insights and milestones are achieved through collaboration. Whether it's understanding end-user needs, preserving human rights, or exploring innovative materials, at Nilfisk we are committed to continuous and dynamic stakeholder engagement through both formal and informal activities.

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
Customers
(B2B & B2C)		 • Daily engagement with our customers
• Customer insights-based product development		 • 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
Employees • Annual global engagement survey and annual
development conversations
• Health & safety processes
• Whistleblower mechanism feedback		 • Respecting human rights and fostering an inclusive
culture 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 development
opportunities
Investors and analysts • External ESG ratings
• Investor calls
• Periodic investor updates
• Capital markets days		 • Understanding views and expectations on ESG
performance
• Respond to ESG requests and questionnaires
• Attracting responsible investors		 • Data available to investor queries
• Transparency of Nilfisk's ESG performance to
industry benchmark
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
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
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

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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 2025, 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.

Change in presentation

The following sections have been moved to the 'Additional information' section, compared to last year: DMA methodology, General basis for preparation, and EU Taxonomy.

Comparative information

Nilfisk assesses the need for restatements based on materiality. During 2025, we continued our focused on enhancing reporting processes, data quality, and accuracy. Consequently, the following changes to 2024 figures were made in accordance with our restatement policy:

• GHG Emissions: For our total scope 1 and 2 emissions target, our base year has been updated to 2021. For our

  • scope 3 emissions, category 1 Purchased goods and services has been added.
  • Reclassification of energy origin: Consumption of selfgenerated non-fuel renewable energy decreased by 1,017 MWh, and Consumption of purchased electricity increased by 1,017 MWh.
  • Correction of error: The total volume of SoC in main hazard class 1 has increased by 551 tonnes, resulting in a new total of 796 tonnes. The total volume of SoVHC in main hazard class 1 has increased by 779 tonnes, resulting in a new total of 2,915 tonnes. These changes are due to an error in the previous calculation method for total substance volumes.

Restated numbers can be found in the Metrics section for E1-5, E1-6, and E2-5.

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, judgements, 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 98.

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 98.

{95}------------------------------------------------

EU Taxonomy

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

Taxonomy overview

Proportion of Revenue, CAPEX, and OPEX from products or services associated with Taxonomy-eligible or Taxonomyaligned economic activities.

Nilfisk has identified which economic activities are eligible and aligned with the EU Taxonomy, assigning revenue, CAPEX, and OPEX accordingly, based on regulatory criteria.

Taxonomy eligibility

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 apply the exemptions in the Commission Delegated Regulation (EU 2026/73).

Consequently, a threshold of 10% has been applied to the revenue, CAPEX, and OPEX KPIs.

Four economic activities are included in the Taxonomy reporting. The economic activities relate to climate change mitigation (CCM) and circular economy (CE).

Taxonomy Alignment

No economic activities are aligned due to unmet screening criteria, mainly related to energy label requirements. For some eligible activities, documentation is insufficient but under review.

Revenue

In 2025, 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 2025, Nilfisk reported eligible CAPEX for CCM, CCA, and CE. Nilfisk reported zero aligned CAPEX. The decrease in eligible CAPEX activities was mainly from a decrease in R&D projects related to our product pipeline.

OPEX

In 2025, Nilfisk reported eligible OPEX for CCM. Nilfisk reported zero aligned OPEX. The increase in eligible OPEX activities was mainly from an increase in expensed R&D projects.

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.

Financial year 2025

Breakdown by environmental objectives of Taxonomy-aligned activities
KPI Total Proportion
of
Taxonomy
eligible
activities		 Taxonomy
aligned
activities		 Proportion
of
Taxonomy
aligned
activities		 Climate
Change
Mitigation		 Climate
Change
Adaptation		 Water Circular
Economy		 Pollution Biodiversity Proportion
of enabling
activities		 Proportion
of
transitional
activities		 Not
assessed
activities
considered
non
material		 Taxonomy
aligned
activities
in previous
financial
year 2024		 Proportion
of
Taxonomy
aligned
activities
in previous
financial
year 2024
mEUR % mEUR % % % %
%		 %
%		 % % % mEUR %
Revenue 996.3 83.3% - - - - - - -
-		 - - 8.6% - -
CAPEX 87.8 43.1% - - - - - - -
-		 - - 3.9% 3.2 3.8%
OPEX 26.1 77.0% - % % % % % %
%		 % % 9.6% 1.4 6.4%

{96}------------------------------------------------

Revenue, CAPEX, and OPEX

Proportion of Revenue, CAPEX, and OPEX from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities.

Reported KPI (Revenue/CAPEX/OPEX) Environmental objective of Taxonomy-aligned activities
Financial year 2025 Code Taxonomy
eligible KPI
(Proportion
of
Taxonomy
eligible
Revenue/
CAPEX/
OPEX)		 Taxonomy
aligned KPI
(monetary
value of
Revenue/
CAPEX/
OPEX)		 Taxonomy
aligned KPI
(Proportion
of
Taxonomy
aligned
Revenue/
CAPEX/
OPEX)		 Climate
Change
Mitigation		 Climate
Change
Adaptation		 Water Circular
Economy		 Pollution Biodiversity Enabling activity Transitional
activity		 Proportion
of
Taxonomy
aligned in
Taxonomy
eligible
Economic activities - % mEUR % % % % % % % (E where
applicable)		 (T where
applicable)		 %
Manufacture of energy efficiency equipment
for buildings		 CCM 3.5 68.9% - - - - - - - - - - -
Sale of spare parts CE 5.2 14.4% - - - - - - - - - - -
Sum of alignment per objective - - - - - -
Total KPI (Revenue) 83.3% - - - - - - - - - -
Manufacture of energy efficiency equipment
for buildings		 CCM 3.5 18.8% - - - - - - - - - - -
Transport by motorbikes, passenger cars and
light commercial vehicles		 CCM 6.5 12.2% - - - - - - - - - - -
Product-as-a-service and other circular use
and result-oriented models		 CE 5.5 12.1% - - -
-		 - - - - - - -
Sum of alignment per objective - - - - - -
Total KPI (CAPEX) 43.1% - - -
-		 - - - - - - -
Manufacture of energy efficiency equipment
for buildings		 CCM 3.5 67.4% - - -
-		 - - - - - - -
Transport by motorbikes, passenger cars and
light commercial vehicles		 CCM 6.5 9.6% - - -
-		 - - - - - - -
Sum of alignment per objective - - - - - -
Total KPI (OPEX) 77.0% - - -
-		 - - - - - - -

Accounting policy

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.

Before assessing eligibility and alignment, Nilfisk evaluated whether any economic activities represented less than 10% of total revenue, CAPEX, and OPEX in line with the Commission Delegated Act (EU 2026/73). Activities cumulatively below this threshold are reported as non-material.

Nilfisk screened the technical annexes of the Climate and Environmental Delegated Acts to create a 'long list' of potentially eligible activities. Each activity was assessed based on 1) How Nilfisk performs the economic activity, and 2) Financial and strategic materiality. Financial materiality is defined based on revenue and CAPEX values. Strategic materiality reflects the strategic importance of the activity to Nilfisk.

For each eligible economic activity, Nilfisk engaged relevant internal stakeholders to gather documentation required for alignment. All substantial contribution criteria were reviewed, including the 'do no significant harm' criteria for all eligible economic activities.

Revenue, CAPEX, and OPEX

In accordance with IFRS 15, revenue includes external net sales from taxonomy eligible activities. CAPEX includes additions to property, plant and equipment (IAS 16) intangible assets (IAS 38), and right of use assets (IFRS 16). OPEX includes direct non-capitalized costs related to R&D, building renovation, short-term leases, maintenance and repair, and other day-to-day servicing of PPE, right-of-use assets and intangibles. The revenue/ CAPEX/OPEX KPI is defined as taxonomy eligible revenue/ CAPEX/OPEX divided by total revenue/CAPEX/OPEX. No disaggregation of revenue, CAPEX, or OPEX KPIs was performed for the assessed activities.

Double counting and contribution to multiple objectives

Nilfisk ensured that relevant amounts were only assigned once to prevent double counting of revenue, CAPEX, and OPEX. It was also assessed whether activities contributed to multiple environmental objectives. No such activities were identified.

{97}------------------------------------------------

General information

ESRS disclosure overview

Disclosure requirements Section 1 Page Additional information
ESRS 2 General disclosures
BP-1 General basis for preparation of sustainability statements SS 95
BP-2 Disclosures in relation to specific circumstances SS 95 Phase-in option used 2
GOV-1 The role of the administrative, management and supervisory bodies MR, SS 22-30, 41 Incorporated by reference
GOV-2 Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies SS 41
GOV-3 Integration of sustainability-related performance in incentive schemes RR 8 Incorporated by reference
GOV-4 Statement on due diligence SS 101
GOV-5 Risk management and internal controls over sustainability reporting MR 24 Incorporated by reference
SBM-1 Strategy, business model and value chain MR, SS 10, 14, 15, 17, 33, 43 Incorporated by reference
Phase-in option used 3
SBM-2 Interests and views of stakeholders SS 94
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model SS 45-47, 71, 78, 80, 83,
92-93		 Phase-in option used⁴
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities SS 34, 42, 90-91
IRO-2 Disclosure requirements in ESRS covered by the undertaking's sustainability statement SS 98-100
ESRS E1 Climate change
E1-1 Transition plan for climate change mitigation SS 50-51
E1-2 Policies related to climate change mitigation and adaptation SS 53-54
E1-3 Actions and resources in relation to climate change policies SS 50-54
E1-4 Targets related to climate change mitigation and adaptation SS 52, 55
E1-5 Energy consumption and mix SS 56
E1-6 Gross scopes 1, 2, 3 and Total GHG emissions SS 57-58
E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities - - Phase-in option used
Disclosure requirements Section 1 Page Additional information
ESRS E2 Pollution
E2-1 Policies related to pollution SS 59-60
E2-2 Actions and resources related to pollution SS 59-60
E2-3 Targets related to pollution SS 59-60
E2-5 Substances of concern and substances of very high concern SS 61
E2 Entity-specific metrics SS 59, 60, 62
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 63
E3-2 Actions and resources related to water and marine resources SS 63
E3 Entity-specific metrics SS 63-64
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 65-66
E5-2 Actions and resources related to resource use and circular economy SS 65-66
E5-3 Targets related to resource use and circular economy SS 65, 67
E5-4 Resource inflows SS 67
E5-5 Resource outflows SS 68
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), Remuneration Report (RR).

&lt;sup>2 Phase-in option used for value chain data for metrics.

&lt;sup>3 Phase-in option used for information on ESRS sectors.

&lt;sup>4 Phase-in option used for information on anticipated financial effects.

{98}------------------------------------------------

ESRS disclosure overview – continued

Disclosure requirements Section¹ Page Additional information
ESRS S1 Own workforce
S1-1 Policies related to own workforce SS 71-73
S1-2 Processes for engaging with own workers and workers'
representatives about impacts		 SS 71
S1-3 Processes to remediate negative impacts and channels for own
workers to raise concerns		 SS 71
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 71-73
S1-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities		 SS 70, 74
S1-6 Characteristics of the undertaking's employees SS 75
S1-9 Diversity metrics SS 76
S1-14 Health and safety metrics SS 76
S1-16 Compensation metrics (pay gap and total compensation) SS 77
S1-17 Complaints and severe human rights impacts SS 77
ESRS S2 Workers in the value chain
S2-1 Policies related to value chain workers SS 78-79
S2-2 Processes for engaging with value chain workers about impacts SS 79
S2-3 Processes to remediate negative impacts and channels for value
chain workers to raise concerns		 SS 79
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 79
S2-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities		 SS 78
Disclosure requirements Section¹ Page Additional information
ESRS S4 Consumers and end-users
S4-1 Policies related to consumers and end-users SS 81-82
S4-2 Processes for engaging with consumers and end-users about
impacts		 SS 80
S4-3 Processes to remediate negative impacts and channels for
consumers and end-users to raise concerns		 SS 80
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 81-82
S4-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities		 SS 80, 82
ESRS G1 Business conduct
G1-1 Corporate culture and business conduct policies and corporate
culture		 SS 85-87
G1-3 Prevention and detection of corruption and bribery SS 88
G1-4 Confirmed incidents of corruption or bribery SS 88

¹ Financial Statements (FS), Management Review (MR), Sustainability Statements (SS).

{99}------------------------------------------------

Data points deriving from other EU legislation

Disclosure requirement Datapoint SFDR
reference		 Pillar 3
reference		 Benchmark
regulation
reference		 EU Climate law reference Page
ESRS 2 GOV-1 21 (d) • • 25
ESRS 2 GOV-1 21 (e) • 22
ESRS 2 GOV-4 30 • 101
ESRS 2 SBM-1 40 (d) i • • • Not applicable
ESRS 2 SBM-1 40 (d) ii • • Not applicable
ESRS 2 SBM-1 40 (d) iii • • Not applicable
ESRS 2 SBM-1 40 (d) iv • Not applicable
ESRS E1-1 14 • 52
ESRS E1-1 16 (g) • • Not applicable
ESRS E1-4 34 • • • 52-55
ESRS E1-5 38 • 56
ESRS E1-5 37 • 56
ESRS E1-5 40-43 • 56
ESRS E1-6 44 • • • 57
ESRS E1-6 53-55 • • • 57
ESRS E1-7 56 • Not applicable
ESRS E1-9 66 • Not applicable
ESRS E1-9 66 (a); 66 (c) • Not applicable
ESRS E1-9 67 (c) • Not applicable
ESRS E1-9 69 • Not applicable
ESRS E2-4 28 • Not applicable
ESRS E3-1 9 • 63
ESRS E3-1 13 • 63
ESRS E3-1 14 • Not applicable
ESRS E3-4 28 (c) • Not applicable
ESRS E3-4 29 • Not applicable
ESRS 2- SBM 3 - E4 16 (a) i • Not applicable
ESRS 2- SBM 3 - E4 16 (b) • Not applicable
ESRS 2- SBM 3 - E4 16 (c) • Not applicable
ESRS E4-2 24 (b) • Not applicable
ESRS E4-2 24 (c) • Not applicable
ESRS E4-2 24 (d) • Not applicable
Disclosure requirement Datapoint SFDR
reference		 Pillar 3
reference		 Benchmark
regulation
reference		 EU Climate law reference Page
ESRS E5-5 37 (d) • 68
ESRS E5-5 39 • 68
ESRS 2- SBM3 - S1 14 (f) • 71
ESRS 2- SBM3 - S1 14 (g) • 71
ESRS S1-1 20 • 71
ESRS S1-1 21 • 71
ESRS S1-1 22 • 71
ESRS S1-1 23 • 72
ESRS S1-3 32 (c) • 71
ESRS S1-14 88 (b) and (c) • • 76
ESRS S1-14 88 (e) • 76
ESRS S1-16 97 (a) • • 77
ESRS S1-16 97 (b) • 77
ESRS S1-17 103 (a) • 77
ESRS S1-17 104 (a) • • 77
ESRS 2- SBM3 - S2 11 (b) • 78
ESRS S2-1 17 • 78
ESRS S2-1 18 • 78
ESRS S2-1 19 • • Not applicable
ESRS S2-1 19 • 78
ESRS S2-4 36 • 78
ESRS S3-1 16 • Not applicable
ESRS S3-1 17 • • Not applicable
ESRS S3-4 36 • Not applicable
ESRS S4-1 16 • 80-81
ESRS S4-1 17 • • 80-81
ESRS S4-4 35 • 80-81
ESRS G1-1 10 (b) • Not applicable
ESRS G1-1 10 (d) • Not applicable
ESRS G1-4 24 (a) • • 88
ESRS G1-4 24 (b) • 88

{100}------------------------------------------------

Statement on sustainability due diligence

Core elements of due diligence Page
a) Embedding due diligence in governance, strategy and business model 41, 45-47, 71, 78, 80, 83, 92-93
b) Engaging with affected stakeholders in all key steps of the due diligence 41-42, 53-54, 59-60, 63, 65-66, 71-73, 78-83, 85-87, 90-92, 94
c) Identifying and assessing adverse impacts 42, 45-47, 71, 78, 80, 83
d) Taking actions to address those adverse impacts 49-59, 59-60, 63, 65-66, 71-73, 78-79, 80-83
e) Tracking the effectiveness of these efforts and communicating 41, 52, 55-57, 59-68, 70, 74-80, 82, 85, 88

{101}------------------------------------------------

Financial Statements

{102}------------------------------------------------

Income statement 104 2 Profit for the year 111 4 Capital employed 123 7 Cash flow 146
2.1 Segment information 112 4.1 Capital employed 123 7.1 Other non-cash adjustments 146
Statement of comprehensive income 104 2.2 Revenue 113 4.2 Impairment test 123
2.3 Research and development costs 114 4.3 Intangible assets 126 8 Other notes 147
Statement of financial position 105 2.4 Special items 115 4.4 Property, plant, and equipment 128 8.1 Fees to auditors elected at the
2.5 Divestments 116 4.5 Right-of-use assets 130 annual general meeting 147
Cash flow statement 106 2.6 Amortization, depreciation, and impairment 117 4.6 Pension liabilities 131 8.2 Related parties 147
2.7 Financial items 117 4.7 Provisions 133 8.3 Contingent liabilities, securities, and contractual
Statement of changes in equity 107 2.8 Tax 118 obligations 147
5 Working capital 134 8.4 Events after balance sheet date 148
Notes 108 3 Remuneration 120 5.1 Working capital 134 8.5 Group companies 148
3.1 Staff costs 120 5.2 Inventories 135
1 Basis for reporting 108 3.2 Remuneration to the Board of Directors 5.3 Trade receivables 136 Part of the management review – not audited 149
1.1 Basis for preparation 108 and the Nilfisk Leadership Team 120 Financial definitions 149
1.2 Key accounting estimates and judgments 110 3.3 Long-term incentive programs 121 6 Capital structure 137 Non-IFRS financial measures 150
1.3 Implementation of new or changed 6.1 Net interest-bearing debt 137
accounting standards and interpretations 110 6.2 Investments in associates 138
6.3 Financial risks and financial instruments 139
6.4 Share capital 145

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 judgments

Key accounting judgments made by the Executive Management Board are included in the notes to which they relate in order to increase clarity.

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.

Sensitivity

Sensitivity analysis often accompanies key accounting estimates and is included in the notes to which it relates in order to increase clarity.

{103}------------------------------------------------

Income statement

for the years ended December 31

EUR million
Note		 2025 2024
Revenue
2.1, 2.2		 996.3 1,027.9
Cost of sales
2.6, 3		 -577.6 -594.0
Gross profit 418.7 433.9
Research and development costs
2.3, 2.6, 3		 -32.7 -28.7
Sales and distribution costs
2.6, 3		 -256.6 -259.4
Administrative costs
2.6, 3		 -66.7 -76.2
Other operating income 1.7 2.0
Other operating expenses -2.3 0.3
Share of profit from associates
6.2		 5.3 4.0
Operating profit (EBIT) before special items 67.4 75.9
Special items, net
2.4, 2.5, 2.6		 -93.1 -6.4
Operating profit (EBIT) -25.7 69.5
Financial income
2.7		 1.5 1.1
Financial expenses
2.7		 -24.8 -23.3
Profit (loss) before income taxes -49.0 47.3
Tax on profit (loss) for the period
2.8		 12.3 -11.9
Profit (loss) for the period -36.7 35.4
To be distributed as follows:
Profit (loss) attributable to shareholders of Nilfisk Holding A/S -36.7 35.4
Total -36.7 35.4
Earnings (loss) per share (based on 27,126,369 shares issued)
Basic earnings (loss) per share (EUR)
6.4		 -1.35 1.31
Diluted earnings (loss) per share (EUR) -1.35 1.31

Statement of comprehensive income

for the years ended December 31

EUR million Note 2025 2024
Profit (loss) for the year -36.7 35.4
Other comprehensive income
Items that may be reclassified to the income statement:
Exchange rate adjustments of subsidiaries -20.5 8.8
Value adjustment of hedging instruments:
Value adjustment for the year 6.3 -1.2 -1.5
Transferred to cost of sales 6.3 2.3 1.2
Tax on value adjustment of hedging instruments 2.8 -0.3 -0.1
Items that may not be reclassified to income statement:
Transferred to inventory 6.3 0.3 0.8
Actuarial gains (losses) on defined benefit plans 4.6 0.7 -1.1
Tax on actuarial gains (losses) on defined benefit plans 2.8 -0.2 0.3
Total comprehensive income for the year -55.6 43.8
To be distributed as follows:
Comprehensive income (loss) attributable to shareholders of Nilfisk Holding A/S -55.6 43.8
Total -55.6 43.8

{104}------------------------------------------------

Statement of financial position

as of December 31

EUR million
Note		 2025 2024
Assets
Goodwill 166.8 170.7
Trademarks 2.5 3.7
Customer related assets - 1.1
Development projects completed 37.2 32.6
Software, know-how, patents, and competition clauses 13.6 17.4
Development projects and software in progress 22.7 30.8
Total intangible assets
4.2, 4.3		 242.8 256.3
Land and buildings 5.8 6.4
Plant and machinery 6.1 6.5
Tools and equipment 38.6 37.0
Assets under construction 2.7 3.4
Right-of-use assets
4.5		 68.2 62.1
Total property, plant and equipment
4.2, 4.4		 121.4 115.4
Investments in associates
6.2		 38.6 37.6
Interest-bearing receivables
6.1		 1.8 1.8
Other investments and receivables 3.4 3.2
Deferred tax
2.8		 43.5 23.5
Total other non-current assets 87.3 66.1
Total non-current assets
4.1		 451.5 437.8
Inventories
5.1, 5.2		 211.0 233.1
Trade receivables
5.1, 5.3, 6.3		 144.3 156.1
Interest-bearing receivables
6.1, 6.3		 16.2 0.3
Income tax receivable
5.1		 4.4 2.3
Other receivables
5.1, 6.3		 33.6 37.7
Cash and cash equivalents 18.2 27.4
Total current assets 427.7 456.9
Total assets 879.2 894.7
EUR million Note 2025 2024
Equity and liabilities
Share capital 6.4 72.9 72.9
Reserves -15.2 4.2
Retained earnings 206.9 242.3
Total equity 264.6 319.4
Deferred tax 2.8, 4.1 1.5 1.6
Pension liabilities 4.1, 4.6 3.9 4.4
Provisions 4.1, 4.7 11.1 7.4
Interest-bearing loans and borrowings 6.1, 6.3 5.9 229.1
Lease liabilities 6.1, 6.3 46.8 38.6
Other liabilities 6.3 1.9 3.3
Total non-current liabilities 71.1 284.4
Interest-bearing loans and borrowings 6.1, 6.3 266.5 5.5
Lease liabilities 6.1, 6.3 24.3 26.4
Trade payables 5.1, 6.3 100.8 127.7
Income tax payable 5.1 6.3 7.0
Other liabilities 5.1, 6.3 105.2 112.2
Provisions 4.1, 4.7 40.4 12.1
Total current liabilities 543.5 290.9
Total liabilities 614.6 575.3
Total equity and liabilities 879.2 894.7

{105}------------------------------------------------

Cash flow statement

as of December 31

EUR million
Note		 2025 2024
Operating profit (EBIT) -25.7 69.5
Depreciation, amortization, and impairment
2.6		 81.6 63.9
Other non-cash adjustments
7.1		 52.2 -3.7
Changes in working capital
5.1		 -40.2 -43.8
Cash flow from operations before financial items and income taxes 67.9 85.9
Financial income received 1.5 2.1
Financial expenses paid -26.2 -19.2
Income tax paid -14.4 -16.9
Cash flow from operating activities 28.8 51.9
Purchase of property, plant, and equipment
4.4		 -9.1 -13.9
Sale/disposal of property, plant, and equipment 1.2 0.6
Purchase of intangible assets
4.3		 -21.7 -32.2
Purchase of financial assets -1.5 -0.9
Disposal of financial assets 0.4 0.2
Dividends received from associates
6.2		 2.0 2.0
Changes in current interest-bearing receivables
6.1		 -15.5 -
Cash flow from investing activities -44.2 -44.2
Free cash flow -15.4 7.7
Changes in current interest-bearing loans and borrowings 1.5 -2.0
Proceeds from non-current interest-bearing loans and borrowings 146.0 285.8
Repayment of non-current interest-bearing loans and borrowings -108.8 -258.4
Payment of lease liabilities -29.7 -28.6
Cash flow from financing activities
6.1		 9.0 -3.2
Net cash flow for the period -6.4 4.5
Cash and cash equivalents, January 1 27.4 23.3
Exchange rate adjustments -2.8 -0.4
Net cash flow for the period -6.4 4.5
Cash and cash equivalents, December 31 18.2 27.4

{106}------------------------------------------------

Statement of changes in equity

for the years ended December 31

2025 2024
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 5.3 -1.1 242.3 319.4 72.9 -3.5 -1.5 207.1 275.0
Other comprehensive income
Exchange rate adjustments - -20.5 - - -20.5 - 8.8 - - 8.8
Value adjustment of hedging instruments:
Value adjustment for the period - - -1.2 - -1.2 - - -1.5 - -1.5
Transferred to cost of sales - - 2.3 - 2.3 - - 1.2 - 1.2
Transferred to inventory - - 0.3 - 0.3 - - 0.8 - 0.8
Actuarial gains (losses) on defined benefit plans - - - 0.7 0.7 - - - -1.1 -1.1
Tax on actuarial gains (losses) on defined benefit plans - - - -0.2 -0.2 - - - 0.3 0.3
Tax on value adjustment of hedging instruments - - -0.3 - -0.3 - - -0.1 - -0.1
Total other comprehensive income - -20.5 1.1 0.5 -18.9 - 8.8 0.4 -0.8 8.4
Profit (loss) for the year - - - -36.7 -36.7 - - - 35.4 35.4
Comprehensive income for the year - -20.5 1.1 -36.2 -55.6 - 8.8 0.4 34.6 43.8
Share option program - - - 0.8 0.8 - - - 0.6 0.6
Total changes in equity - -20.5 1.1 -35.4 -54.8 - 8.8 0.4 35.2 44.4
Equity, December 31 72.9 -15.2 - 206.9 264.6 72.9 5.3 -1.1 242.3 319.4

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Notes

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 2025 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.

Change in presentation

The share of profit from associates, previously presented below operating profit in the income statement, has been reclassified to operating profit. This reclassification follows the impairment of investments in associates related Thoro LLC., a company specializing in autonomous cleaning technology, leaving M2H S.A., a company selling industrial equipment and associated services, as the primary remaining associate. The change reflects Nilfisk's increased strategic focus on M2H within its go-to-market strategy, under which results from associates are now considered part of Nilfisk's operating activities.

The impact of this reclassification on the income statement and related financial ratios is illustrated in the table below. Comparison figures have been restated accordingly.

Applying materiality

The provisions in IFRS Accounting Standards contain extensive disclosure requirements. The specific disclosures required according to the IFRS Accounting Standards 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.

2025 2024
EUR million Previous
presentation		 Effect of
change in
presentation		 New
presentation		 Previous
presentation		 Effect of
change in
presentation		 New
presentation
Operating profit (EBIT) before special items 62.1 5.3 67.4 71.9 4.0 75.9
Operating profit (EBIT) -31.0 5.3 -25.7 65.5 4.0 69.5
EBITDA before special items 123.9 5.3 129.2 135.8 4.0 139.8
EBITDA 50.6 5.3 55.9 129.4 4.0 133.4
Profit (loss) before income taxes -49.0 - -49.0 47.3 - 47.3
Ratios
EBITDA margin before special items 12.4% 0.6% 13.0% 13.2% 0.4% 13.6%
EBITDA margin 5.1% 0.5% 5.6% 12.6% 0.4% 13.0%
Operating profit (EBIT) margin before special items 6.2% 0.6% 6.8% 7.0% 0.4% 7.4%
Operating profit (EBIT) margin -3.1% 0.5% -2.6% 6.4% 0.4% 6.8%

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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 2024 version of the ESEF taxonomy has been used for the annual report for 2025.

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-2025-12- 31-en.zip, which includes an XHTML file that may be opened using standard web browsers, and a series of technical XBRL and a XBRL files enabling machinereadable access to the incorporated XBRL data.

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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 2025. 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 2025. 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.

The accounting standard IFRS 18 Presentation and Disclosure in Financial Statements becomes effective for financial years beginning on January 1, 2027, with restatement of comparative figures. An analysis has been initiated to assess the impact of IFRS 18 on the consolidated financial statements and accompanying notes. The analysis has not yet been completed. Under IFRS 18, the share of profit from associates will be reclassified to a line item below operating profit, and recognition of foreign exchange gains/losses will be reclassified to operating profit from financial items.

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 High
2.8 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 Provision Estimate the value of provisions related to restructuring, contract obligations, and
uncertain legal cases		 Estimate Medium
5.2 Inventory Estimate the value of inventory provisions related to restructuring and strategic review Estimate Medium

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Section 2 Profit (loss) for the year

This section relates to profit (loss) for the year, including revenue, segment information, research and development costs, special items, amortization, depreciation, and impairment, financial items, and income tax.

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.

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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
2025
Revenue 558.1 296.1 65.7 76.4 - 996.3
Gross profit 232.9 121.8 33.4 30.6 - 418.7
Overhead cost excluding amortization, depreciation, and impairment -164.8 -61.1 -14.2 -21.6 -27.8 -289.5
EBITDA before special items 68.1 60.7 19.2 9.0 -27.8 129.2
Reconciliation to profit before income taxes:
Special items -93.1
Amortization, depreciation, and impairment -61.8
Financial income 1.5
Financial expenses -24.8
Profit (loss) before income taxes -49.0
Organic growth -0.7% 1.7% 3.0% -1.0% - 0.2%
Gross margin 41.7% 41.1% 50.8% 40.1% - 42.0%
EBITDA margin before special items 12.2% 20.5% 29.2% 11.8% - 13.0%
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
Overhead cost excluding amortization, depreciation, and impairment -160.2 -61.2 -14.2 -22.3 -36.2 -294.1
EBITDA before special items 79.4 71.0 19.1 6.5 -36.2 139.8
Reconciliation to profit before income taxes:
Special items -6.4
Amortization, depreciation, and impairment -63.9
Financial income 1.1
Financial expenses -23.3
Profit (loss) 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% - 13.6%

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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, meaning 'sold-from' country.

EUR million / Percentage 2025 2024
USA 243.1 24% 282.7 28%
Germany 146.8 15% 148.8 14%
France 106.2 11% 107.4 10%
Denmark 68.2 7% 68.9 7%
United Kingdom 52.9 5% 49.4 5%
Canada 28.4 3% 28.8 3%
Italy 25.9 3% 25.1 2%
Türkiye 25.2 3% 22.2 2%
Netherlands 24.9 2% 25.8 3%
Spain 24.7 2% 22.8 2%
Other 250.0 25% 246.0 24%
Total 996.3 100% 1,027.9 100%
Revenue Reported
growth		 Organic
growth		 Non-current assets*
EUR million 2025 2024 2025 2025 2025 2024
EMEA region 620.6 612.4 1.3% 2.3% 311.8 310.0
Americas region 301.3 341.2 -11.7% -4.9% 63.5 68.3
APAC region 74.4 74.3 0.1% 3.9% 32.7 36.0
Total 996.3 1,027.9 -3.1% 0.2% 408.0 414.3

* Non-current assets less deferred tax assets.

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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,
2025		 December 31,
2024
Prepayments from customers 0.9 1.0
Deferred revenue (non-current) 1.6 2.3
Deferred revenue (current) 8.4 8.3
Total contract liabilities 10.9 11.6

Set out below is the amount of revenue recognized from:

EUR million 2025 2024
Amounts included in contract liabilities at the beginning
of the year 9.3 8.8

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.

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.

2.3 Research and development costs

Research and development costs specification

EUR million 2025 2024
Staff costs 24.3 20.9
Other costs 12.1 17.5
Total research and development spend 36.4 38.4
Recognized as follows:
Expensed in the income statement 19.8 17.6
Capitalized 16.6 20.8
Total 36.4 38.4
R&D ratio (% of revenue) 3.7% 3.7%
Presented in the income statement:
Expensed in the income statement, cf. above 19.8 17.6
Amortization, depreciation, and impairment 12.9 11.1
Research and development costs
excluding special items		 32.7 28.7
Special items 14.8 0.1
Total research and development costs 47.5 28.8

For further information see the research and development comments in the Management Review.

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2.4 Special items

EUR million 2025 2024
Business restructuring
Severance costs 17.0 1.2
Impairment of fixed assets 13.0 -
Inventory write-down 9.1 -
Consultancy costs 8.8 2.6
Provisions and contractual obligations 3.9 0.3
Impairment of financial assets 3.0 -
Other costs 1.7 1.5
Divestments
Write-down current assets 7.6 -
Impairment of non-current assets 3.4 -
Consultancy costs 0.6 -
Other
Legal cases 27.5 1.8
Insurance income -2.5 -1.0
Total 93.1 6.4

Special items represent income and expenses that have a non-recurring and special nature against normal operating income and costs. Special items are presented separately from ordinary operating activities to enhance transparency and provide a more accurate representation of underlying financial performance.

In 2025, special items amounted to 93.1 mEUR, mainly related to the execution of decisions on Nilfisk future strategic priorities.

Business restructuring

Following a comprehensive strategic review, Nilfisk has identified selected development projects and inventory items that will not be part of the future product portfolio. Furthermore, Nilfisk has decided to consolidate the production and R&D site in Brooklyn Park, US, into the existing production site in Querétaro, Mexico, and has completed the consolidation of the Hungarian production sites. These strategic decisions and site consolidations led to impairments of non-current assets, inventory write-downs, and provisions for contractual obligations related to development projects and inventory items that will not form part of Nilfisk's future product portfolio, including the investment in Thoro LLC., an associated company specializing in autonomous cleaning technology. Severance costs related to these initiatives, together with costs from previously announced restructuring programs, were recognized as special items. Lastly, consultancy costs associated with the initiatives and the process relating to the voluntary takeover offer, announced in December 2025, were also recognized as special items. In total, these business restructuring costs amounted to 56.5 mEUR, of which 25.8 mEUR had a cash impact.

Business restructuring costs recognized in 2024 came to 5.6 mEUR, mainly from advisory costs incurred for strategic improvement projects and restructuring costs from the consolidation of the two US high-pressure washer operations.

Divestments

The asset deal relating to the US high-pressure washer business resulted in impairments and write-downs. Consultancy costs associated with the divestment process have also been recognized as special items, bringing total costs relating to the divestment of the US high-pressure washer business to 11.6 mEUR, of which 0.6 mEUR had a cash impact. Read more in Note 2.5 Divestments.

Other

In 2025, Nilfisk recognized a provision of 23.3 mEUR relating to the insurance dispute with respect to the insurance payout for the destruction of the Group's US distribution center following a tornado. Furthermore, Nilfisk revised its provision related to the ongoing legal dispute with the owner of the US distribution center building, recognizing an additional cost of 4.2 mEUR, with no cash impact. This adjustment reflects the outcome of the Court of Appeals' ruling, external legal counsel's assessment, and the Executive Management Board's best estimate. Read more in Note 8.3 Contingent liabilities, securities, and contractual obligations for further information on both disputes. The impact was partly offset by insurance income related to Hurricane Milton of 2.5 mEUR.

In 2024, costs recognized related to the legal dispute with the owner of the US distribution center and insurance income related to Hurricane Milton.

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2.4 Special items – continued

Special items are disclosed separately in the income statement and have been reconciled to the income statement line items as specified in the table below.

EUR million 2025 Special items 2025 adjusted 2024 Special items 2024 adjusted
Revenue 996.3 - 996.3 1,027.9 - 1,027.9
Cost of sales -577.6 -24.6 -602.2 -594.0 -1.4 -595.4
Gross profit 418.7 -24.6 394.1 433.9 -1.4 432.5
Research and development costs -32.7 -14.8 -47.5 -28.7 -0.1 -28.8
Sales and distribution costs -256.6 -3.6 -260.2 -259.4 - -259.4
Administrative costs -66.7 -27.0 -93.7 -76.2 -5.9 -82.1
Other operating income/expenses, net -0.6 -20.1 -20.7 2.3 1.0 3.3
Share of profit from associates 5.3 -3.0 2.3 4.0 - 4.0
Special items, net -93.1 93.1 - -6.4 6.4 -
Operating profit (EBIT) -25.7 - -25.7 69.5 - 69.5
Financial income 1.5 - 1.5 1.1 1.1
Financial expenses -24.8 - -24.8 -23.3 - -23.3
Profit before income taxes -49.0 - -49.0 47.3 - 47.3

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, strategic review, legal obligations, and gains and losses on divestments, including impairment write-downs which are not presented as discontinued operations. Special items are presented separately from ordinary operations to facilitate a better understanding of the financial performance. Impairment losses of a non-recurring nature are recognized under special items.

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. Management carefully considers individual items and projects (including restructurings) in order to ensure the correct distinction and split between operating activities and significant income and expenses of a special nature.

2.5 Divestment

On October 31, 2025, the asset purchase agreement for the US high-pressure washer business was finalized. The transaction was structured as an asset deal and resulted in a net transaction price of 1.6 mEUR, which has been recognized in the income statement under special items. The assets were previously classified as held for sale until the transaction date.

As part of the sales process, impairments and inventory write-downs totalling 11.0 mEUR were recognized to reflect the estimated fair value. In addition, consultancy costs of 0.6 mEUR relating to the divestment has been recognized. Read more in Note 2.4 Special items.

The disposed group of net assets comprised of the following major classes of assets and liabilities:

EUR million October 31,
2025
Intangible assets 0.4
Property, plant and equipment 1.4
Inventories 3.1
Assets 4.9
Lease liabilities 3.3
Liabilities 3.3
Net assets 1.6

The disposal group was measured at the lower of carrying amount and fair value less costs to sell prior to derecognition. The transaction price of 1.6 mEUR reflects the fair value of the net assets at the transaction date.

The cash inflow from the sale of the disposal group of net assets was 1.6 mEUR.

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2.6 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 Other non-current assets Total
EUR million 2025 2024 2025 2024 2025 2024 2025 2024
Amortization and depreciation: - -
Cost of sales 0.1 0.1 21.8 20.9 - - 21.9 21.0
Research and development costs 12.6 10.6 0.3 0.4 - - 12.9 11.0
Sales and distribution costs 0.7 2.6 12.5 11.9 - - 13.2 14.5
Administrative costs 4.9 8.0 8.9 9.1 - - 13.8 17.1
Total amortization and depreciation 18.3 21.3 43.5 42.3 - - 61.8 63.6
Impairment:
Research and development costs - 0.1 - - - - - 0.1
Administrative costs - 0.2 - - - - - 0.2
Special items 12.0 - 4.8 - 3.0 - 19.8 -
Total impairment 12.0 0.3 4.8 - 3.0 - 19.8 0.3
Total amortization, depreciation and impairment 30.3 21.6 48.3 42.3 3.0 - 81.6 63.9

For 2025, amortization of acquisition-related intangibles was 0.8 mEUR (2024: 2.7 mEUR), hereof 0.1 mEUR included in cost of sales (2024: 0.1 mEUR) and 0.7 mEUR included in sales and distribution costs (2024: 2.6 mEUR).

In 2025, impairments of 19.8 mEUR were recognized as special items, of which 19.1 mEUR related to the Professional Business segment, and 0.7 mEUR related to HQ. These impairments mainly related to the comprehensive strategic review of the business resulting in impairments of non-current assets that will not be part of the future product portfolio. Read more in Note 2.4 Special Items.

2.7 Financial items

Specification of financial items

income Financial Financial
expenses
EUR million 2025 2024 2025 2024
Interest on financial assets (liabilities) measured at
amortized costs		 0.1 0.1 12.9 14.8
Foreign exchange losses - - 6.5 2.6
Interest, lease liabilities - - 3.3 3.2
Other financial items 1.4 1.0 2.1 2.7
Total 1.5 1.1 24.8 23.3

Financial items, net represented a cost of 23.3 mEUR in 2025 compared to a cost of 22.2 mEUR in 2024. Financial income increased by 0.4 mEUR, while financial expenses increased by 1.5 mEUR compared to 2024.

The increase in the interest income was primarily due to other financial items. The increase in financial expenses was primarily driven by increased foreign exchange losses, partly offset by lower 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.

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2.8 Tax

Tax recognized in the income statement

EUR million 2025 2024
Tax for the year is specified as follows:
Tax on profit (loss) for the year -12.3 11.9
Tax on other comprehensive income 0.5 -0.2
Total tax for the year -11.8 11.7
Tax on profit for the year is specified as follows:
Current tax on profit for the year 10.6 14.1
Deferred tax current year -23.4 1.4
Prior year adjustment, current and deferred tax 0.5 -3.6
Total tax on profit for the year -12.3 11.9
Tax on other comprehensive income is specified as follows:
Tax on value adjustment of hedging instruments 0.3 0.1
Tax on actuarial gains on defined benefit plans 0.2 -0.3
Total tax on other comprehensive income 0.5 -0.2

The effective tax rate in 2025 came to 25.0% in line with 25.2% in 2024. The effective tax rate was positively impacted by a change in deferred tax related to divestment of business of 6.3 mEUR as well as a decrease in the provision for uncertain tax positions of 1.3 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 have been made where the aggregated probability of the tax position being upheld is considered to be less likely than not.

Tax rate

EUR million 2025 2024
Reconciliation of the effective tax rate for the year:
Calculated tax on profit (loss) before tax -10.8 22.0% 10.4 22.0%
Adjustment of calculated tax in foreign subsidiaries
relative to 22%		 1.0 -2.1% 1.1 2.3%
Tax effect of:
Non-deductible expenses/non taxable income 3.3 -6.7% 1.1 2.3%
Uncertain tax position -1.3 2.7% 2.4 5.1%
Tax assets valuation allowances 0.2 -0.4% 0.5 1.1%
Other taxes and adjustments 1.1 -2.3% - -
Change in deferred tax related to divestment of
business		 -6.3 12.8% - -
Prior year adjustment 0.5 -1.0% -3.6 -7.6%
Effective tax rate -12.3 25.0% 11.9 25.2%

Pillar II

The legislation related to the OECD Pillar II model rules, also known as the Global Anti-Base Erosion (GloBE) rules, are in force and apply to financial years beginning on or after January 1, 2024. Most countries where Nilfisk has operations impose taxation in excess of 15%.

In addition to the GloBE rules, transitional Safe Harbor rules have been enacted. For 2025, one country has not been covered by the transitional Safe Harbor rules, resulting in a minimal tax provision of 1.0 kEUR.

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, however, Nilfisk expects an increased compliance burden in relation to such rules.

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.

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2.8 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
2025
Intangible assets -9.3 0.6 7.9 - -0.8
Property, plant and equipment 1.2 0.1 -1.5 - -0.2
Other non current assets 0.2 - -0.4 - -0.2
Current assets -1.6 -0.2 0.4 - -1.4
Other non-current liabilities 6.1 -0.2 - -0.5 5.4
Current liabilities 13.4 -0.5 0.5 - 13.4
Tax base of tax loss carryforward and credits 13.2 -0.1 14.0 - 27.1
Valuation allowance -1.3 0.1 -0.1 - -1.3
Net deferred tax 21.9 -0.2 20.8 -0.5 42.0
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
2025 2024
43.5 23.5
-1.5 -1.6
42.0 21.9

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 set-off against deferred tax liabilities in the same legal tax entity and jurisdiction.

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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

3.1 Staff costs

Staff costs specification

EUR million 2025 2024
Wages and salaries1 263.6 261.8
Long-term incentive programs 0.8 0.6
Social security costs 34.8 35.4
Defined contribution plans 12.1 12.7
Defined benefit plans 0.4 0.4
Total 311.7 310.9
Number of full-time equivalents, average 4,622 4,794
Staff costs per full-time equivalents (EUR thousand) 67.4 64.9

1 Wages and salaries includes severance costs related to restructuring programs recognized as Special items. Read more in Note 2.4 Special items.

3.2 Remuneration to the Board of Directors and the Nilfisk Leadership Team

Remuneration to the Nilfisk Leadership Team

Executive
Management		 Nilfisk
Leadership
EUR thousand
2025		 Board Team Total¹
Salary and pension 2,501.6 2,697.8 5,199.4
Annual bonus 639.4 469.9 1,109.3
Long-term incentive programs 503.4 350.3 853.7
Other short-term compensation - 465.6 465.6
Other benefits 67.4 200.6 268.0
Total 3,711.8 4,184.2 7,896.0
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 short-term compensation - - -
Other benefits 67.3 146.2 213.5
Total 2,827.2 2,743.8 5,571.0

1 Amounts displayed also includes payments for former Nilfisk Leadership team members that has 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 1.2 mEUR in 2025 and 0.4 mEUR in 2024 partly included in special items.

The remuneration to the Executive Management Board and the Nilfisk Leadership Team has increased from 5.6 mEUR in 2024 to 7.9 mEUR in 2025, primarily due to an increase in annual bonus and other short-term compensation.

Remuneration to the Board of Directors

EUR thousand 2025 2024
Board of Directors 644.7 610.4
Audit Committee 48.7 43.6
Remuneration Committee 28.1 20.0
Nomination Committee 29.9 29.1
Total remuneration to the Board of Directors 751.4 703.1

The remuneration to the Board of Directors covers 11 board members in 2025 (2024: 11 board members) whereof no members have waived the remuneration.

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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 (2024: 1.5 mEUR).

In 2025, the 2022 Performance Share Program vested. The sustainability target was met, and 9,607 shares have subsequently been settled and paid out to the participants. The remaining shares for the 2022 Performance Share Program have been reversed and came to an income of 0.1 mEUR. Expenses for the 2023, 2024, and 2025 program came to 0.9 mEUR in 2025. Hence total recognition of performance share programs came to a cost of 0.8 mEUR in 2025 compared to cost of 0.3 in 2024.

The table below shows the costs recognized for share-based payments in the income statement.

Recognition of long-term incentive programs

EUR million 2025¹ 2024¹
2021 performance share program - -0.3
2022 performance share program -0.1 -0.1
2023 performance share program 0.1 -
2024 performance share program 0.4 0.4
2025 performance share program 0.4 -
Warrant program - 0.3
Total long-term incentive programs 0.8 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, 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 2025, the Nilfisk Leadership Team and selected key employees were offered participation in the 2025 program with a total of 194,967 Performance Share Units (PSUs) equal to 0.72% 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

2025 2024
- 48,041
85,635 87,955
113,659 139,472
177,115 -
376,409 275,468

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 a non-market condition 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)
2025 2024 2025 2024 2025 2024
Outstanding, January 1 275,468 201,087 143 162 19 22
Granted during the period 194,967 143,504 95 129 13 17
Forfeited during the period -45,985 -12,954 116 132 16 18
Exercised during the period -9,607 - 203 - 27 -
Expired during the period -38,434 -56,169 203 171 27 23
Outstanding, December 31 376,409 275,468 114 143 15 19
Weighted average remaining contractual life (months) 15 16
Fair value at grant date (mEUR) 2.5 2.5

{121}------------------------------------------------

3.3 Long-term incentive programs – continued

Warrant program

In line with the remuneration policy, 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.

Below is an overview of outstanding warrants at December 31.

Outstanding warrants

Warrants 2025 2024
Warrant program June, 2023 14,341 113,145
Warrant program September, 2023 28,965 28,965
Warrant program March, 2024 46,728 46,728
Warrant program June, 2024 90,469 90,469
Warrant program March, 2025 385,320 -
Total outstanding warrants 565,823 279,307

Warrants

Number of warrants Avg. exercise price
per warrant (DKK)		 Avg. exercise price
per warrant (EUR)
2025 2024 2025 2024 2025 2024
Outstanding, January 1 279,307 142,110 200 200 27 27
Granted during the period 385,320 137,197 200 200 27 27
Forfeited during the period -98,804 - 200 - 27 -
Outstanding, December 31 565,823 279,307 200 200 27 27
Weighted average remaining contractual life (months) 23 24
Fair value at grant date (mEUR) 1.4 1.1

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 three 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 2025
Share price (DKK) 126.7
Strike price (DKK) 200.0
Time to maturity (years) 3.5
Risk-free rate 2.7%
Volatility 40.6%
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.

{122}------------------------------------------------

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.

4.1 Capital employed

EUR million 2025 2024
Intangible assets 242.8 256.3
Property, plant, and equipment 121.4 115.4
Investments in associates 38.6 37.6
Other investments and receivables 3.4 3.2
Deferred tax 42.0 21.9
Provisions -51.5 -19.5
Pension liabilities -3.9 -4.4
Working capital 179.1 179.0
Capital employed 571.9 589.5

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.

Impairment losses of a non-recurring nature are recognized under special items.

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 a certain judgment relating to allocation of future EBITDA which is allocated to the cashgenerating units. The change in the goodwill balances from January 1, 2025 to December 31, 2025 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 2025 2024
Professional 65.9 67.5
Service 80.2 82.1
Specialty 19.6 20.0
Consumer 1.1 1.1
Total 166.8 170.7

{123}------------------------------------------------

4.2 Impairment test – continued

Key accounting estimates

Impairment test on goodwill allocated to cash-generating units as of December 31, 2025

Impairment tests are performed for each cash-generating unit (CGU) based on budgets for 2026 and forecasts for the period 2027-2030. The impairment tests performed for the CGUs show comfortable headroom as of December 31, 2025. 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. The significant changes to the macroeconomic environment during 2025 are included in Management's estimates.

Macroeconomic environment factors

Macroeconomic uncertainty, external disruptions, uneven regional conditions and trade barriers continued to impact markets in 2025. 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, uneven regional conditions, continued potential trade barriers 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, tight regulatory requirements for health and safety standards, and sustainability requirements have also been taken

into consideration. To counter this, investment initiatives towards digital transformation, marketing initiatives, sustainable products, improvement-driven execution and the consolidation of manufacturing in Hungary and Querétaro, Mexico combine to enhance Nilfisk's value proposition and are expected to drive demand for Nilfisk products and services through our strategic roadmap, with clear priorities across customer focus, product development, operational improvements, and strengthening our platform for long-term value creation. Nilfisk's customers face increasing requirements for more efficient and sustainable cleaning solutions 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 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 short- and 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. This projection was 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 CGU's margin development in the forecasting period, past experience and the impact from expected efficiency improvements are taken into consideration. The expected impact of initiatives such as component standardization through value engineering and platforming, macroeconomic environment factors described above, 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 we operate. The applied terminal growth rate for all cash generating units was 1.0%, unchanged from 2024.

Discount rate

A pre-tax discount rate of 7.1% and a post-tax discount rate of 6.6% compared to 7.7% and 7.3% respectively in 2024 has been applied in the performed impairment tests. The discount rate has been applied to all CGUs, assuming our targeted ratio between the market value of our debt and equity value. The decrease in interest rates has not impacted the calculated discount rate significantly compared to 2024. The discount rate after tax increased 0.6 percentage point compared to last year.

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.

{124}------------------------------------------------

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 in-progress development projects. 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.

Other non-current intangible assets, property, plant and equipment Other non-current assets were also tested for impairment indications together with goodwill as of 31 December 2025. No indication of impairment was

identified in connection with these tests.

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).

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4.3 Intangible assets

2025 2024
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 1 170.7 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
Exchange rate adjustments -3.9 -1.3 -2.4 -0.7 -2.3 -0.1 -10.7 2.0 0.7 1.3 0.1 0.9 - 5.0
Additions - - - 0.9 0.6 20.2 21.7 - - - 1.4 1.5 29.3 32.2
Disposals - -7.4 -8.9 -18.7 -9.2 -1.5 -45.7 - - - -22.3 -4.0 -0.1 -26.4
Transferred between classes of assets - - - 25.8 1.0 -26.8 - - - - 9.6 8.6 -18.2 -
Costs, December 31 166.8 15.7 20.9 181.4 97.4 25.9 508.1 170.7 24.4 32.2 174.1 107.3 34.1 542.8
Amortization and impairment, January 1 - -20.7 -31.1 -141.5 -89.9 -3.3 -286.5 - -19.0 -28.4 -153.2 -84.8 -3.2 -288.6
Exchange rate adjustments - 0.9 2.2 0.9 2.2 - 6.2 - -0.4 -1.3 - -0.9 - -2.6
Amortization for the year - -0.3 -0.3 -12.5 -5.2 - -18.3 - -1.3 -1.4 -10.6 -8.0 - -21.3
Impairment for the year - - - - - - - - - - - -0.2 -0.1 -0.3
Impairment for the year special items - -0.4 -0.4 -9.8 - -1.4 -12.0 - - - - - - -
Disposals - 7.3 8.7 18.7 9.1 1.5 45.3 - - - 22.3 4.0 - 26.3
Amortization and impairment, December 31 - -13.2 -20.9 -144.2 -83.8 -3.2 -265.3 - -20.7 -31.1 -141.5 -89.9 -3.3 -286.5
Carrying amount, December 31 166.8 2.5 - 37.2 13.6 22.7 242.8 170.7 3.7 1.1 32.6 17.4 30.8 256.3
Investment ratio (% of amortizations) - - - 214% 31% - 265% - - - 104% 126% - 237%

1 Trademarks with a carrying amount of 2.4 mEUR (2024: 2.6 mEUR) are not amortized, as they are regarded as having an indefinite useful life.

Impairment losses

In 2025, impairments of intangible assets of 12.0 mEUR were recognized as special items, mainly related to the comprehensive strategic review of the business resulting in impairments related to development projects and other intangible assets that will not be part of the future product portfolio. Read more in Note 2.4 Special Items.

In 2024 impairment losses of 0.3 mEUR in total were realized. Hereof, 0.1 mEUR was related to an outphased R&D project and 0.2 mEUR was related to an outphased software project.

The recoverable amount from the impaired intangible assets was measured at fair value less cost to sell or discounted cash flow model (value in use),

depending on the nature of the intangible assets, and assigns a nil value to intangible assets not pursued following the strategic review. The assessment of impairment and recoverable amounts involves estimates and judgments made by management based on expectations of future events. Management considers the measurement to be fairly stated.

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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 cash generating units (CGU's) at the acquisition date. The identification of CGU's 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 CGU's 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 the 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 prices 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.

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 costs 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.

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
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.

{127}------------------------------------------------

4.4 Property, plant, and equipment

2025 2024
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 14.8 17.6 135.1 3.4 170.9 14.3 15.0 124.7 5.4 159.4
Exchange rate adjustments -0.8 -0.9 -3.5 -0.2 -5.4 0.4 0.2 -0.7 -0.1 -0.2
Additions - 0.5 11.6 7.6 19.7 0.2 0.4 11.7 11.4 23.7
Disposals - -3.2 -8.4 -0.4 -12.0 -0.1 -0.5 -10.4 -1.0 -12.0
Transferred between classes of assets - 1.7 6.0 -7.7 - - 2.5 9.8 -12.3 -
Costs, December 31 14.0 15.7 140.8 2.7 173.2 14.8 17.6 135.1 3.4 170.9
Depreciation and impairment, January 1 -8.4 -11.1 -98.1 - -117.6 -8.0 -10.4 -94.8 - -113.2
Exchange rate adjustments 0.5 0.8 3.1 - 4.4 -0.2 0.1 0.2 - 0.1
Depreciation for the year -0.3 -1.2 -13.2 - -14.7 -0.3 -1.3 -11.9 - -13.5
Impairment for the year special items - -0.9 -1.4 -0.1 -2.4 - - - - -
Disposals - 2.8 7.4 0.1 10.3 0.1 0.5 8.4 - 9.0
Depreciation and impairment, December 31 -8.2 -9.6 -102.2 - -120.0 -8.4 -11.1 -98.1 - -117.6
Carrying amount, December 31 5.8 6.1 38.6 2.7 53.2 6.4 6.5 37.0 3.4 53.3
Investment ratio (% of depreciation) 0% 183% 132% - 185% 67% 223% 181% - 267%

Impairment losses

In 2025, impairments of property, plant, and equipment of 2.4 mEUR were recognized as special items, mainly related to the consolidation of the production and R&D site in Brooklyn Park, US, into the existing production site in Querétaro, Mexico, as well as the divestment of the US high-pressure washer business. Read more in Note 2.4 Special Items.

No impairment losses have been recognized in 2024.

The recoverable amount from the impaired tangible assets was measured at fair value less cost to sell or discounted cash flow model (value in use), depending on the nature of the tangible assets, and assigns a nil value to tangible assets not pursued following the strategic review. The assessment of impairment and recoverable amounts involves estimates and judgments made by management based on expectations of future events. Management considers the measurement to be fairly stated.

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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 self-constructed 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:

8-25 years*
3-20 years
3-15 years
Not depreciated

* On 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.

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4.5 Right-of-use assets

2025 2024
Land and
buildings		 Plant and
machinery		 Tools and
equipment		 Total Land and
buildings		 Plant and
machinery		 Tools and
equipment		 Total
108.3 5.2 54.6 168.1 101.5 4.9 46.0 152.4
-4.0 -0.1 -2.0 -6.1 - - -0.5 -0.5
33.5 2.3 10.7 46.5 11.6 1.0 15.4 28.0
-10.8 -1.3 -7.3 -19.4 -4.8 -0.7 -6.3 -11.8
127.0 6.1 56.0 189.1 108.3 5.2 54.6 168.1
-71.6 -4.1 -30.3 -106.0 -57.4 -3.5 -24.9 -85.8
2.8 - 1.3 4.1 0.3 - 0.6 0.9
-16.1 -0.6 -12.1 -28.8 -16.5 -0.9 -11.4 -28.8
-2.2 - -0.2 -2.4 - - - -
5.1 1.0 6.1 12.2 2.0 0.3 5.4 7.7
-82.0 -3.7 -35.2 -120.9 -71.6 -4.1 -30.3 -106.0
45.0 2.4 20.8 68.2 36.7 1.1 24.3 62.1

Impairment losses

In 2025, impairments of right-of-use assets of 2.4 mEUR were recognized as special items, mainly related to the divestment of the US high-pressure washer business. Read more in Note 2.4 Special Items. No impairment losses were recognized in 2024.

The recoverable amount from the impaired right-of-use assets was measured at fair value less cost to sell or discounted cash flow model (value in use), depending on the nature of the right-of-use assets, and was assigned a recoverable value of 1.4 mEUR. The assessment of impairment and recoverable amounts involve estimates and judgments made by management based on expectations of future events. Management considers the measurement to be fairly stated.

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 1.1 mEUR (2024: 2.4 mEUR).

Lease contracts recognized as overhead costs

Short-term and low value lease contracts are expensed directly as overhead costs. For 2025, the overhead costs amounted to 1.6 mEUR (2024: 1.5 mEUR). The expected overhead costs for 2026 relating to short-term and low value lease contracts are 1.7 mEUR (2024: 1.5 mEUR).

Payments relating to lease arrangements

Total cash-out for right-of-use assets recognized in the statement of financial position in the year was 32.3 mEUR (2024: 31.8 mEUR). The amount is made up of repayment of lease liabilities of 29.0 mEUR (2024: 28.6 mEUR) and interest of 3.3 mEUR (2024: 3.2 mEUR). As of December 31, 2025 the estimated useful life can be summarized as follows:

Leased buildings: 1-7 years, with a remaining average of 2.1 years (2024: 1-7 years with average of 1.9 years).

Other leases: 1-6 years with a remaining average of 1.8 years (2024: 1-6 years with average of 2.0 years). Average discount rate for active contracts as of December 31, 2025 was 5.7% (2024: 5.3%). 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 remeasured 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.

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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

2025 2024
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 27.2 22.8 4.4 26.2 22.4 3.8
Recognized costs in the income statement:
Current service cost 0.4 - 0.4 0.4 - 0.4
Calculated interest expenses/income 0.9 0.7 0.2 0.8 0.8 -
Total 1.3 0.7 0.6 1.2 0.8 0.4
Recognized in other comprehensive income:
Actuarial gains from changes in demographic assumptions 0.1 - 0.1 - - -
Actuarial gains (losses) from changes in financial assumptions -1.2 - -1.2 0.6 - 0.6
Other return on plan assets - -0.4 0.4 - -0.5 0.5
Total actuarial gains (losses) on defined benefit plans -1.1 -0.4 -0.7 0.6 -0.5 1.1
Other changes:
Contributions to plans 0.2 0.6 -0.4 0.2 1.0 -0.8
Benefits paid/received -3.3 -3.2 -0.1 -1.5 -1.3 -0.2
Exchange rate adjustments -0.5 -0.6 0.1 0.5 0.4 0.1
Total -3.6 -3.2 -0.4 -0.8 0.1 -0.9
Net recognized plan obligations and assets, December 31 23.8 19.9 3.9 27.2 22.8 4.4
EUR million 2025 2024
Plan assets recognized as follows:
Securities with quoted market price 17.0 16.4
Cash 1.1 1.0
Other 1.8 5.4
Total 19.9 22.8

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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 pension liabilities.

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 2025 2024
0.5% point increase in the discount rate -1.6 -1.6
0.5% point decrease in the discount rate 1.4 1.8
0.5% point increase in the future salary increases 0.1 0.2
0.5% point decrease in the future salary increases -0.1 -0.1

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4.7 Provisions

Development in provisions

EUR million Warranties Other Total
2025
Provisions, January 1 10.2 9.3 19.5
Exchange rate adjustments -0.4 -0.4 -0.8
Provisions made during the year 8.8 41.4 50.2
Used during the year -9.3 -8.1 -17.4
Provisions, December 31 9.3 42.2 51.5
Provisions are presented as:
Non-current liabilities - 11.1 11.1
Current liabilities 9.3 31.1 40.4
Total 9.3 42.2 51.5
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

Provisions increased by 32 mEUR compared to 2024, mainly relating to the insurance dispute with respect to the insurance payout for the destruction of the Group's US distribution center following a tornado and restructuring provisions. Read more in Note 2.4 Special Items, Note 8.3 Contingent liabilities, and Note 8.4 events after the balance sheet date.

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, contractual obligations, and legal cases.

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.

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 contractual obligations, restructuring, and legal cases represent management's best estimate of the Group's liability. The estimate for legal cases is further supported by external legal assessment.

Provisions are considered key accounting estimates due to the significant Management judgment and assumptions involved in their assessment. Therefore, actual results may differ from these estimates as more detailed information becomes available or as circumstances evolve. Read more in Note 1.2 Key accounting estimates and judgments.

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Section 5 Working capital

This section covers the Nilfisk Group's working capital.

Working capital represents the assets and liabilities necessary to support dayto-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.

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.

Working capital bridge

2025 2024
Non-cash changes Non-cash changes
EUR million January 1 Exchange rate
Cash flows
adjustments
Provisions		 Divestment
of associated
company		 Reclas
sifications		 December 31 January 1 Cash flows Exchange rate
adjustments		 Provisions Reclas
sifications		 December 31
Inventories 233.1 18.2 -10.8 -10.7 -9.2 -9.6 211.0 200.5 40.6 0.7 -1.0 -7.7 233.1
Trade receivables 156.1 -2.3 -8.1 -1.4 - - 144.3 138.7 15.0 0.2 2.2 - 156.1
Other receivables 37.7 -1.9 -1.0 - - -1.2 33.6 28.9 7.5 -0.7 - 2.0 37.7
Income tax receivable 2.3 - -0.1 - - 2.2 4.4 3.5 - - - -1.2 2.3
Other non-current liabilities -3.3 0.5 0.2 - - 0.7 -1.9 -3.5 0.3 -0.2 - 0.1 -3.3
Trade payables -127.7 24.8 2.1 - - - -100.8 -123.5 -3.1 -1.1 - - -127.7
Other liabilities -112.2 0.9 4.9 - - 1.2 -105.2 -97.2 -16.5 1.6 - -0.1 -112.2
Income tax payable -7.0 - 0.1 - - 0.6 -6.3 -7.8 - - - 0.8 -7.0
Working capital 179.0 40.2 -12.7 -12.1 -9.2 -6.1 179.1 139.6 43.8 0.5 1.2 -6.1 179.0
Working capital ratio (LTM) 16.9% 20.3% 17.8% 16.9%

{134}------------------------------------------------

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 176 to 179 by the end of December 2025.

Specification of inventories

EUR million 2025 2024
Raw materials, consumables, and goods for resale 59.0 79.5
Work in progress 0.1 0.4
Finished goods 151.9 153.2
Total 211.0 233.1

Movements in inventory write-down

EUR million 2025 2024
Write-down on inventories, January 1 12.7 11.6
Exchange rate adjustments -0.8 0.1
Write-down on inventories for the year 17.9 2.5
Reversal/disposal of write-downs -7.2 -1.5
Write-down on inventories, December 31 22.6 12.7

Inventory write-downs increased by 9.9 mEUR compared to 2024, mainly related to the comprehensive strategic review of the business resulting in products and parts in stock that will not be part of the future product portfolio, and has been recognized as special items. Read more in Note 2.4 Special Items.

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.

Key accounting estimates

The inventory write-downs related to restructuring and strategic review, recognized under special items in 2025, are inherently subject to significant estimation uncertainty. The inventory write-downs are considered key accounting estimates due to the significant Management judgment involved in their assessment. Therefore, actual results may differ from these estimates as more detailed information becomes available or as circumstances evolve. Read more in Note 1.2 Key accounting estimates and judgments.

{135}------------------------------------------------

Overdue trade receivables are being monitored closely with a continued focus on collecting receivables. The days sales outstanding was 49.5 (2024: 50.6).

At December 31, 2025, non-recourse factoring amounted to 27.9 mEUR (2024: 31.8 mEUR).

Specification of trade receivables

EUR million 2025 2024
Trade receivables, gross incl. VAT 150.5 161.2
Allowance for expected credit losses -6.2 -5.1
Total 144.3 156.1

Movements in allowance for expected credit losses

2025 2024
5.1 7.1
-0.3 0.2
2.5 0.8
-0.9 -2.4
-0.2 -0.6
6.2 5.1

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

2025 2024
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 109.1 0.2 0.1% 118.3 0.2 0.1%
Overdue < 1 months 17.2 0.1 0.5% 19.5 0.1 0.5%
Overdue 1-2 months 7.3 0.2 3.7% 6.9 0.1 2.4%
Overdue 2-4 months 4.9 0.4 9.7% 6.2 0.6 10.4%
Overdue 4-12 months 6.4 1.2 20.8% 5.5 1.0 20.0%
Overdue > 12 months 5.6 4.1 83.2% 4.8 3.1 73.0%
Total 150.5 6.2 161.2 5.1

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.

{136}------------------------------------------------

Section 6 Capital structure

This section covers the Nilfisk Group's capital structure and financial risks.

6.1 Net interest-bearing debt

The Group's objective is to have capital resources to meet operations and potential acquisitions. To achieve and maintain an efficient capital structure, the Group's financial gearing target should be between 1.5–2.0x.

Nilfisk has total committed credit facilities of 425 mEUR (2024: 425 mEUR), split between a 200 mEUR Revolving Credit Facility (RCF) and a 225 mEUR Schuldschein loan (SSD). 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 and includes a financial covenant with reference to the ratio

between net interest-bearing debt and EBITDA. The SSD is a debt capital market product and provides Nilfisk with diversity in debt maturity (3, 5, and 7 years), plus a higher degree of financing flexibility for future investment opportunities when they arise. The SSD includes a step-up coupon if the financial gearing exceeds a given level. The facilities are available for general funding purposes.

As described in note 8.4 Events after the balance sheet date, Nilfisk increased its special items and the related provision following the court ruling in the insurance dispute on January 16, 2026. Under IFRS, and based on the conditions existing at December 31, 2025, it is required to assess if Nilfisk would have been in breach of the loan covenant under its RCF and SSD had the facilities not been amended.

In January, 2026, the lending banks granted Nilfisk an amendment to the covenant. The amendment was provided in due time and ensures that no legal breach nor event of default has occurred, and the facilities are therefore not expected to become repayable within the next twelve months from December 31, 2025.

As the amendment was provided subsequent to December 31, 2025, it is treated as a non-adjusting event. Therefore, both the RCF and SSD are required to be classified as a current liability at year end, as the classification of borrowings must reflect the lender's contractual rights at December 31, 2025. This reclassification is required by IAS 1 Presentation of Financial Statements and does not reflect an expectation nor a requirement from the lending banks that the debt will be repaid within the next twelve months. Nilfisk maintains adequate liquidity, continues to comply with all other financing conditions, and retains full access to both facilities.

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.

Specification of net interest-bearing debt
2025
2024
------------------------------------------------------------
Non-cash changes Non-cash changes
EUR million January 1 Cash flows Foreign exchange and
other movements		 Reclassification Leases December 31 January 1 Cash flows Foreign exchange and
other movements		 Reclassification Leases December 31
Non-current interest-bearing loans and borrowings 229.1 37.2 1.6 -262.0 - 5.9 205.9 27.4 -4.2 - - 229.1
Non-current lease liabilities 38.6 - -1.8 - 10.0 46.8 44.7 - 0.3 - -6.4 38.6
Current interest-bearing loans and borrowings 5.5 1.5 -2.5 262.0 - 266.5 2.1 -2.0 5.4 - - 5.5
Current lease liabilities 26.4 -29.7 -1.7 - 29.3 24.3 24.6 -28.6 0.1 - 30.3 26.4
Interest-bearing liabilities 299.6 9.0 -4.4 - 39.3 343.5 277.3 -3.2 1.6 - 23.9 299.6
Net liabilities from financing activities 299.6 9.0 -4.4 - 39.3 343.5 277.3 -3.2 1.6 - 23.9 299.6
Non-current interest-bearing receivables -1.8 - - - - -1.8 -1.3 - -0.5 - - -1.8
Current interest-bearing receivables -0.3 -15.5 -0.4 - - -16.2 -0.5 - 0.2 - - -0.3
Interest-bearing receivables -2.1 -15.5 -0.4 - - -18.0 -1.8 - -0.3 - - -2.1
Net liabilities from investing activities -2.1 -15.5 -0.4 - - -18.0 -1.8 - -0.3 - - -2.1
Cash and cash equivalents 27.4 -6.4 -2.8 - - 18.2 23.3 4.5 -0.4 - - 27.4
Net interest-bearing debt 270.1 -0.1 -2.0 - 39.3 307.3 252.2 -7.7 1.7 - 23.9 270.1

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6.2 Investments in associates

Associated companies is comprised of M2H, CFM Lombardia and, Thoro.

Thoro LLC. is a joint venture with Carnegie Robotics LLC established in 2020. The primary activity of Thoro LLC. is the development and sale of autonomous technology software and services. Following the comprehensive strategic review of the business in 2025 the investment in Thoro has been written down to zero, as the product portfolio will not be part of Nilfisk's future business. Read more in Note 2.4 Special items.

The primary activity of M2H is the sale of industrial equipment and associated services to cleaning companies. Since 2000, M2H has been the "Cleaning Division" of Nilfisk in France. Following the impairment of Thoro, M2H is now the primary remaining associate. This change reflects Nilfisk's increased strategic focus on M2H within its go-to-market strategy, under which results from associates are now considered part of Nilfisk's operating activities. Read more in Note 1.1 Basis for preparation.

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.

Carrying amount of associated companies

2025 2024
37.6 34.9
-0.3 0.7
5.3 4.0
1.0 -
-3.0 -
-2.0 -2.0
38.6 37.6
Details of associated companies 2024
CFM CFM
M2H Lombardia Thoro Total M2H Lombardia Thoro Total
EUR million France Italy US France Italy US
Revenue 91.0 2.4 0.9 94.3 89.7 2.2 0.9 92.8
Profit (loss) after tax 11.7 0.2 -2.0 9.9 9.8 0.1 -2.4 7.5
Non-current assets 13.6 0.3 11.6 25.5 14.8 0.2 8.8 23.8
Current assets 91.0 1.4 2.2 94.6 78.9 1.3 - 80.2
Total assets 104.6 1.7 13.8 120.1 93.7 1.5 8.8 104.0
Equity 76.6 0.7 11.1 88.4 68.8 0.5 8.8 78.1
Non-current liabilities 17.3 0.2 1.8 19.3 14.4 0.2 - 14.6
Current liabilities 10.7 0.8 0.9 12.4 10.5 0.8 - 11.3
Equity and liabilities 104.6 1.7 13.8 120.1 93.7 1.5 8.8 104.0
Ownership in % 49.0% 33.3% 27.3% 49.0% 33.3% 32.2%
Share of profit (loss) after tax 5.7 0.1 -0.5 5.3 4.8 - -0.8 4.0
Share of equity 37.5 0.2 3.0 40.7 33.7 0.2 2.8 36.7
Goodwill recognized 0.9 - - 0.9
Impairment - - -3.0 -3.0 0.9 - - 0.9
Carrying amount 38.4 0.2 - 38.6 34.6 0.2 2.8 37.6
Goods sold to associated companies 18.2 0.8 - 19.0 21.6 0.9 - 22.5
Goods purchased from associated companies - - 0.6 0.6 - - 0.5 0.5
Dividends received from associated companies 2.0 - - 2.0 2.0 - - 2.0
Receivables from associated companies 0.1 0.3 - 0.4 0.5 0.5 - 1.0

Accounting policy

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 in operating profit to reflect the increased strategic focus, under which results from associates are now considered part of Nilfisk's operating activities. 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.

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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 44% of gross debt at December 31, 2025 compared to 50% in 2024.

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)
2025
July 30, 2024 July 30, 2026 150 - 4.00% p.a. -0.4
September 27, 2024 July 30, 2029 110 1.53% p.a. 3.00% p.a. 0.3
Total -0.1
2024
July 30, 2024 July 30, 2026 150 - 4.00% p.a. -0.8
September 27, 2024 July 30, 2029 110 1.51% p.a. 3.00% p.a. 0.1
Total -0.7

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 -1.4 3.1
2%-points decrease -3.7 6.1
3%-points decrease -6.4 6.2
1%-point increase 1.0 -3.1
2%-points increase 3.3 -6.1
3%-points increase 6.4 -7.7

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 2025, the interest expense amounted to 0.0 mEUR, compared to 0.0 mEUR in 2024. 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)
2025
184,278 January 30, 2026 138.40 25.5 3.80% -
Total -
2024
144,580 February 24, 2025 105.60 15.3 5.70% -
Total -

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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.

The maturity analysis has been provided based on contractual cash flows, including estimated interest payments. The amounts have not been discounted and as such do not reconcile directly to the statement of financial position.

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
2025
Forward contracts 3.3 - - - - - 3.3
Other hedging instruments 0.4 - - - - - 0.4
Interest-bearing loans and borrowings 269.1 0.2 0.3 0.3 0.1 4.9 274.9
Lease liabilities 28.4 19.3 11.8 7.9 6.3 8.5 82.2
Trade payables 100.8 - - - - - 100.8
Other financial liabilities 101.5 1.0 0.5 0.3 0.1 - 103.4
Total 503.5 20.5 12.6 8.5 6.5 13.4 565.0
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

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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 2025 2024
USD -7.1 -10.3
CNY -3.1 -3.6
GBP -1.1 -2.4

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

2025 2024
EUR million Notional
value¹		 Recognized
in OCI		 Notional
value¹		 Recognized
in OCI
AUD/DKK -18.7 -0.1 -7.0 0.1
CAD/DKK -8.7 -0.1 - -
CNH/DKK2 79.8 0.1 58.7 1.7
GBP/DKK -23.0 - -22.7 -0.6
HUF/DKK 19.5 0.7 8.9 -0.2
NOK/DKK -8.2 - -7.7 0.1
PLN/DKK -6.5 -0.2 -9.3 -0.2
SEK/DKK -12.1 -0.3 -10.2 -
TRY/DKK -2.5 -0.2 -11.6 -1.4
USD/DKK -11.6 0.2 -15.9 -0.8
CAD/USD - - -12.7 0.6
Total 8.0 0.1 -29.5 -0.7

1Forward 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.

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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 2025 2024
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 4.2984 AUD/DKK -6,740 AUD -28,971 DKK -11.3 4.5485 AUD/DKK -8,018 AUD -36,470 DKK 76.2
Sell AUD 7-12 months 4.1740 AUD/DKK -3,910 AUD -16,320 DKK -55.4 4.5735 AUD/DKK -3,685 AUD -16,853 DKK 40.4
0-6 months 0.7105 CAD/DKK -8,030 CAD -5,706 DKK -71.9 - CAD/DKK - - -
Sell CAD 7-12 months 0.7212 CAD/DKK -5,990 CAD -4,320 DKK -29.0 - CAD/DKK - - -
0-6 months 0.9199 CNH/DKK 380,970 CNH 350,452 DKK -490.0 0.9550 CNH/DKK 255,535 CNH 244,026 DKK 968.0
Buy CNH 7-12 months 0.8964 CNH/DKK 275,790 CNH 247,219 DKK 637.7 0.9606 CNH/DKK 189,930 CNH 182,445 DKK 751.8
0-6 months 8.7607 GBP/DKK -12,120 GBP -106,179 DKK 92.0 8.8021 GBP/DKK -11,690 GBP -102,897 DKK -446.6
Sell GBP 7-12 months 8.5745 GBP/DKK -7,940 GBP -68,081 DKK -77.1 8.9069 GBP/DKK -7,160 GBP -63,773 DKK -152.7
0-6 months 0.0189 HUF/DKK 4,297,930 HUF 81,166 DKK 477.9 0.0189 HUF/DKK 2,054,750 HUF 38,857 DKK -141.4
Sell HUF 7-12 months 0.0192 HUF/DKK 3,225,640 HUF 61,851 DKK 192.7 0.0186 HUF/DKK 1,599,370 HUF 29,810 DKK -89.0
0-6 months 0.6377 NOK/DKK -59,590 NOK -38,002 DKK -18.5 0.6501 NOK/DKK -49,770 NOK -32,355 DKK 86.7
Sell NOK 7-12 months 0.6313 NOK/DKK -37,720 NOK -23,813 DKK -27.6 0.6350 NOK/DKK -40,910 NOK -25,979 DKK 0.1
0-6 months 1.7640 PLN/DKK -16,390 PLN -28,912 DKK -124.9 1.7281 PLN/DKK -23,030 PLN -39,799 DKK -151.8
Sell PLN 7-12 months 1.7595 PLN/DKK -10,950 PLN -19,267 DKK -51.8 1.7370 PLN/DKK -16,800 PLN -29,182 DKK -59.9
0-6 months 0.6751 SEK/DKK -83,370 SEK -56,285 DKK -195.0 0.6566 SEK/DKK -73,928 SEK -48,540 DKK 32.9
Sell SEK 7-12 months 0.6780 SEK/DKK -47,990 SEK -32,539 DKK -100.9 0.6499 SEK/DKK -43,360 SEK -28,178 DKK -15.2
0-6 months 0.1875 TRY/DKK -126,000 TRY -23,621 DKK -152.5 0.2101 TRY/DKK -240,000 TRY -50,420 DKK -999.5
Sell TRY 7-12 months - TRY/DKK - - - 0.2018 TRY/DKK -185,000 TRY -37,336 DKK -403.3
0-6 months 6.7595 USD/DKK -6,010 USD -40,624 DKK 195.7 6.9413 USD/DKK -9,483 USD -65,824 DKK -416.7
Sell USD 7-12 months 6.3935 USD/DKK -7,590 USD -48,527 DKK -41.6 6.8743 USD/DKK -7,080 USD -48,670 DKK -324.9
0-6 months - CAD/USD - - - 0.7285 CAD/USD -11,420 CAD -8,319 USD 376.7
Sell CAD 7-12 months - CAD/USD - - - 0.7207 CAD/USD -7,580 CAD -5,463 USD 187.1
Total 148.5 -681.1

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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

2025 2024
EUR million Currency risk Interest rate risk Total Currency risk Interest rate risk Total
Hedging reserve, January 1 -0.5 -0.6 -1.1 -1.0 -0.5 -1.5
Value adjustment for the year -1.8 0.6 -1.2 -1.4 -0.1 -1.5
Value adjustment reclassified to cost of sales 2.3 - 2.3 1.2 - 1.2
Value adjustment reclassified to inventory 0.3 - 0.3 0.8 - 0.8
Tax on value adjustment of hedging instruments -0.2 -0.1 -0.3 -0.1 - -0.1
Hedging reserve, December 31 0.1 -0.1 - -0.5 -0.6 -1.1

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 5% increase in the CNH/DKK rate will impact other comprehensive income by 4.0 mEUR.

2025 2024
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% -0.5 0.2 8% -0.6 0.1
CAD/DKK 5% -0.1 0.1 - - -
CNH/DKK 5% 4.0 - 6% 3.6 -0.9
GBP/DKK 5% -1.1 - 5% -1.2 -
HUF/DKK 7% 1.5 0.2 7% 0.6 -0.1
NOK/DKK 8% -0.7 -0.1 8% -0.6 -
PLN/DKK 5% -0.3 - 6% -0.5 -0.1
SEK/DKK 6% -0.8 - 6% -0.6 -
TRY/DKK 19% -0.5 - 22% -2.5 0.1
USD/DKK 6% -0.7 0.3 8% -1.2 4.6
CAD/USD 6% - 0.1 5% -0.1 0.2

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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.

Financial assets and liabilities by category

EUR million 2025 2024
Financial assets:
Trade receivables 144.3 156.1
Interest-bearing receivables 16.2 0.3
Other financial receivables 30.7 33.9
Financial assets at amortized cost 191.2 190.3
Derivative financial instruments 2.2 3.0
Fair value through other comprehensive income 2.2 3.0
Derivative financial instruments 0.7 0.8
Fair value through profit and loss 0.7 0.8
Total 194.1 194.1
Financial liabilities:
Interest-bearing loans and borrowings 272.4 234.6
Trade payables 100.8 127.7
Lease liabilities 71.1 65.0
Other financial liabilities 103.4 110.6
Financial liabilities at amortized cost 547.7 537.9
Derivative financial instruments 2.2 4.4
Fair value through other comprehensive income 2.2 4.4
Derivative financial instruments 1.5 0.5
Fair value through profit and loss 1.5 0.5
Total 551.4 542.8
Financial instruments, net -0.8 -1.1

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. The hedged

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6.3 Financial risks and financial instruments – continued

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 2024. 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 2025 2024
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 2025 2024
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

Earnings (loss) per share

EUR million 2025 2024
Profit (loss) for the year used for calculation of earnings (loss)
per share		 -36.7 35.4
Dilutive effect of profit (loss) for the year - -
Profit (loss) for the year used for the calculation
of diluted earnings (loss) per share		 -36.7 35.4
EUR 2025 2024
Basic earnings (loss) per share -1.35 1.31
Diluted earnings (loss) per share -1.35 1.31

Dividends

At the Annual General Meeting to be held on March 19, 2026, the Board of Directors will propose not to distribute dividends for the financial year of 2025 (2024: 0.0 mEUR).

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

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

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Section 7 Cash flow

This section contains notes related to cash flow

7.1 Other non-cash adjustments

EUR million 2025 2024
Change in provisions 52.3 -1.2
Share of profit (loss) from associates -5.3 -
Impairment of investments in associates 3.0 -
Other non-cash items 2.2 -2.5
Total 52.2 -3.7

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.

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Section 8 Other notes

This section 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 2025 2024
Deloitte:
Statutory audit 1.3 1.2
Tax and VAT services - 0.1
Other assurance service 0.3 0.3
Other services - 0.4
Total 1.6 2.0

In 2025, the fee for other services provided to the Group by Deloitte Statsautoriseret Revisionspartnerselskab Denmark amounted to 0.0 mEUR (2024: 0.4 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 2025 2024
Goods sold to associated companies 19.0 22.5
Goods purchased from associated companies 0.6 0.5
Dividends received from associated companies 2.0 2.0
Receivables from associated companies 0.4 1.0

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 2025 2024
Contractual obligations 3.4 -
Other guarantees 4.6 5.6
Total 8.0 5.6

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 following a tornado. The Court of first instance ruled in favor of Nilfisk. The insurer subsequently appealed the ruling, and Nilfisk received the ruling on January 16, 2026, from the Eastern High Court (Østre Landsret), which finds in favor of the insurer. Nilfisk disagrees with the ruling, and based on external legal advice, will apply for leave to appeal the decision to the Supreme Court. The insurer's total claim was reduced from 19 mEUR to 17 mEUR excluding interest and legal fees, corresponding to a total exposure of approximately 23.3 mEUR including interest and legal fees. Nilfisk has recognized a provision covering the full estimated exposure of this dispute.

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 District Court found that Nilfisk was in material breach of its contractual obligations and awarded damages to the owner of the US distribution center building in the amount of 13.8 mEUR excluding post-judgment interest and lawyers' fees. Nilfisk disagreed with the Court's rulings and appealed to the Court of Appeals. Nilfisk was granted a stay of execution of the Court's ruling on damages and has posted security for the damages awarded by the Court. The Court of Appeals issued its opinion on October 17, 2025, by which it decided to remand 4.7 mEUR of the

awarded damages to the District Court, as the Court of Appeals found that the District Court's calculations of this amount were not explained in a way that allowed the Court of Appeals to fully review whether this portion of the award is supported by substantial evidence. Nilfisk has provided for this dispute based on external legal assessment and the Executive Management Board's best estimate.

Both disputes are considered special items and will not affect Nilfisk's operating results. Read more in Note 2.4 Special Items. The Executive Management Board continues to see a degree of uncertainty related to potential costs for these claims. 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.

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8.4 Events after the balance sheet date

Following the announcement in December 2025 of Freudenberg Home and Cleaning Solutions GmbH's intention to acquire Nilfisk, Nilfisk published announcement no. 1/2026 on January 7, 2026, regarding the publication of the offer document on the voluntary takeover offer made by Freudenberg. At the date of approval of this Annual Report, the offer remains subject to shareholder review and regulatory processes.

On January 16, 2026, Nilfisk received the Eastern High Court's (Østre Landsret) ruling in the insurance dispute related to the destruction of the US distribution center following a tornado. The provision for this dispute has been recognized as special items in 2025. Read more in Note 4.7 Provisions, Note 6.1 Net interestbearing debt, and Note 8.3 Contingent liabilities.

Other than as set out above, the Executive Management Board is not aware of events subsequent to December 31, 2025 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) (under liquidation) 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. (27%) US

Ownership below 100% is disclosed in brackets.

{148}------------------------------------------------

Financial definitions

(Part of the management review – not audited)

1
Cash conversion
2
Capital employed
3
CAPEX
4
CAPEX ratio
5
Days sales outstanding
6
Diluted earnings (loss) per share
7
EBITDA before special items
8
EBITDA
9
EBITDA margin before special items
10
EBITDA margin
11
EBIT before special items
12
EBIT
13
EBIT margin before special items
14
EBIT margin
15
Earnings (loss) per outstanding share (EPS)
16
Equity value per outstanding share
17
Financial gearing
18
Free cash flow
19
Free cash flow excluding acquisitions and divestments
20
Full-time equivalent (FTE)
21
Gross margin		 Cash flow from operations before financial items and income taxes as a percentage of EBITDA
Non-current assets less interest-bearing receivables, provisions, pensions, and deferred tax liabilities and working capital
Capital expenditure (investments in property, plant, and equipment, and intangible assets)
CAPEX as a percentage of revenue
Accounts receivables (excluding VAT), minus bad debt provision, divided by latest three months' net sales accumulated up to twelve months, and multiplied by 365
Profit (loss) attributable to shareholders of Nilfisk Holding A/S as a percentage of diluted average number of outstanding shares
Earnings (profit/loss) before interest, tax, depreciation, amortization, impairment, and special items
Earnings (profit/loss) before interest, tax, depreciation, amortization, and impairment
EBITDA before special items as a percentage of revenue
EBITDA as a percentage of revenue
Earnings (loss) before interest, tax, and special items (operating profit before special items)
Earnings (loss) before interest and tax (operating profit)
EBIT before special items as a percentage of revenue
EBIT as a percentage of revenue
Profit (loss) attributable to shareholders of Nilfisk Holding A/S relative to average number of outstanding shares
Equity attributable to shareholders of Nilfisk Holding A/S per outstanding share at December 31
Net interest-bearing debt divided by EBITDA before special items LTM
Cash flow from operating activities less cash flow from investing activities
Free cash flow plus cash flow from acquisition of businesses and less cash flow from divestment of businesses
Full-time equivalent is calculated as the number of total hours worked divided by the number of hours for a full-time worker
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

{149}------------------------------------------------

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.

1.8% Revenue growth (according to income statement)
-3.1%
-0.6%
Foreign exchange
2.2%

EBITDA and EBITDA before special items

In addition to measuring financial performance of the Group based on operating profit, EBITDA and adjusted EBITDA before special items 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 2025 2024
Operating profit (EBIT) -25.7 69.5
Depreciation, amortization, and impairment 81.6 63.9
EBITDA 55.9 133.4
Special items (excl. depreciation and impairment) 73.3 6.4
EBITDA before special items 129.2 139.8

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 2025 2024
Research and development costs -32.7 -28.7
Sales and distribution costs -256.6 -259.4
Administrative costs -66.7 -76.2
Other operating income 1.7 2.0
Other operating expenses -2.3 0.3
Total overhead costs -356.6 -362.0

{150}------------------------------------------------

Parent company financial statements 2025

{151}------------------------------------------------

Income statement

for the period January 1 to December 31

EUR million Note 2025 2024
Other income 1 2.4 2.7
Administrative costs 2 -13.6 -5.1
Operating loss -11.2 -2.4
Financial expenses 3 -6.5 -6.3
Loss before income taxes -17.7 -8.7
Income taxes 4 1.9 2.6
Loss for the year -15.8 -6.1
To be distributed as follows:
Loss attributable to shareholders of Nilfisk Holding A/S 5 -15.8 -6.1
Total -15.8 -6.1

Balance sheet

as of December 31

EUR million Note 2025 2024
Assets
Investments in subsidiaries 6 215.5 215.9
Deferred tax 4 5.1 2.9
Total non-current assets 220.6 218.8
Income tax receivable 4 - 0.8
Receivables from Group companies 7 2.9 4.1
Total current assets 2.9 4.9
Total assets 223.5 223.7
Equity and liabilities
Share capital 72.9 72.9
Retained earnings -16.7 -1.2
Total equity 56.2 71.7
Interest-bearing loans and borrowings - 54.5
Loans from Group companies 7 - 96.2
Total non-current liabilities - 150.7
Interest-bearing loans and borrowings 70.9 -
Loans from Group companies 7 92.2 -
Trade payables and other liabilities 4.2 1.3
Total current liabilities 167.3 1.3
Total liabilities 167.3 152.0
Total equity and liabilities 223.5 223.7

{152}------------------------------------------------

Statement of changes in equity

for the years ended at December 31

EUR million Share capital Retained earnings Total equity
2025
Equity, January 1 72.9 -1.2 71.7
Loss for the year - -15.8 -15.8
Exchange rate adjustments - -0.2 -0.2
Share option program - 0.5 0.5
Total changes in equity - -15.5 -15.5
Equity, December 31 72.9 -16.7 56.2
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

The total number of shares is 27,126,369 with a nominal value of 20 DKK each. The share capital is unchanged from 2024. All shares have been fully paid up and no shares carry special rights. 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 2025 comprised loss for the year, and changes to the share option program. No dividends are proposed for 2025.

{153}------------------------------------------------

Notes

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 comprise management fee of 2.4 mEUR (2024: 2.7 mEUR) received by Nilfisk Holding A/S.

2. Administrative costs

EUR million 2025 2024
Wages and salaries 3.4 3.2
Bonus 0.6 0.1
Long-term incentive programs 0.5 0.2
Total staff costs¹ 4.5 3.5
Number of full-time employees, average 2 2
Number of full time employees, year-end 2 2
Remuneration to Board of Directors 0.8 0.7
Remuneration to the Executive Management Board 3.0 2.8
Remuneration to former member of the
Executive Management Board		 0.7 -
Other administrative costs 9.1 1.6
Total administrative costs 13.6 5.1

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 0.7 mEUR in 2025 (2024: 0.0 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.

Increase in Other administrative costs mainly relate to consultancy costs associated with strategic projects as well as the process related to the voluntary takeover offer, announced in December 2025.

3. Financial items

EUR million 2025 2024
Foreign exchange losses -0.1 -0.1
Interest to Group companies -6.2 -6.2
Other financial items -0.2 -
Total -6.5 -6.3

4. Tax

Tax recognized in the income statement

EUR million 2025 2024
Deferred tax -2.2 -1.5
Adjustment, prior years 0.3 -1.1
Total -1.9 -2.6
Reported tax rate -10.7% -29.8%
Reconciliation of tax:
Calculated tax of 22.0% (2024: 22.0%) on loss before
income taxes		 -3.9 -1.9
Tax effect of:
Non-taxable income/non-deductible expenses 1.7 0.4
Adjustment, prior years 0.3 -1.1
Total -1.9 -2.3

Deferred tax assets

EUR million 2025 2024
Deferred tax assets, January 1 2.9 1.4
Deferred tax recognized in the income statement 2.2 1.5
Deferred tax assets, December 31 5.1 2.9

{154}------------------------------------------------

Income statement / Balance sheet Statement of changes in equity Notes Accounting policies

5. Proposed distribution of loss for the year

EUR million 2025 2024
Proposed distribution of loss for the year:
Loss attributable to shareholders of Nilfisk Holding A/S -15.8 -6.1
Total -15.8 -6.1

6. Investments in subsidiaries

EUR million 2025 2024
Carrying amount, January 1 215.9 216.0
Exchange rate adjustments -0.4 -0.1
Carrying amount, December 31 215.5 215.9

7. Related parties

Transactions with affiliated undertakings comprise the following:

EUR million 2025 2024
Non-current interest-bearing loan from Nilfisk A/S - 96.2
Current interest-bearing loan from Nilfisk A/S 92.2 -
Receivables from Group companies 2.9 4.1

Management fee of 2.4 mEUR is included in the 2.9 mEUR as a net receivable (2024: 2.7 mEUR).

Other matters of interest in relation to related parties are disclosed in Section 8 Other notes of the consolidated financial statements.

8. Major shareholders

The following shareholders holds an excess of 5% of the share capital as of December 31, 2025:

Number
of shares		 Share
capital
Ferd AS, Oslo, Norway 6,588,568 24.3%
KIRKBI INVEST A/S, Billund, Denmark 5,493,200 20.3%
PrimeStone Capital LLP, London, United Kingdom 1,627,740 6.0%
Boldhaven Management LLP, London, United Kingdom 1,376,114 5.1%

9. Contingent liabilities, securities, and contractual obligations

EUR million 2025 2024
Rental guarantees 5.9 6.7

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.

10. Events after the balance sheet date

The interest-bearing loans and borrowings are addressed within the group consolidated financial statements under Note 8.4 Events after the balance sheet date. Furthermore, Nilfisk Holding A/S extended the maturity of its existing loan facility with Nilfisk A/S. The loan, which previously matured on July 10, 2026, has been extended to July 10, 2027, and Nilfisk Holding A/S is therefore not expected nor required to repay the loan of 92.2 mEUR to Nilfisk A/S within the next 12 months from the balance sheet date. As the agreement was extended subsequent to December 31, 2025, it is treated as a non-adjusting event. It is the Executive Management Board's assessment that Nilfisk Holding A/S' liquidity position is maintained.

Other than the above, no other 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.

{155}------------------------------------------------

Income statement / Balance sheet Statement of changes in equity Notes Accounting policies

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).

Other disclosures

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.

The parent company has in accordance with the Danish Financial Statements Act, Section 96 (3) not prepared separate note on auditors fee. See Note 8.1 Fees to auditors elected at the annual general meeting, in the consolidated financial statements.

For the following notes, see information in the consolidated financial statements:

  • Remuneration Section 3 Remuneration
  • Share capital Note 6.4 Share Capital

{156}------------------------------------------------

Management's statement Independent auditor's report Independent auditor's report ESG

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 to December 31, 2025.

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, 2025 as well as of the results of their operations and the Group's cash flows for the financial year January 1 to December 31, 2025.

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 to December 31, 2025, with the file name: NIL-2025-12-31-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 19, 2026

Jon Sintorn Carl Fredrik Wilhelm Bandhold
President & CEO CFO
Board of Directors
Göran Peter Nilsson
Chair
Are Dragesund Franck Falezan Bengt Anders Lennart Thorsson
Ole Kristian Jødahl Viveka Marianne Ekberg Gerner Raj Andersen
Alexander Kjær Rasmussen

{157}------------------------------------------------

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, 2025, which comprise the income statement, statement of financial position, 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, 2025, and of the results of its operations and cash flows for the financial year January 1 – December 31, 2025 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, 2025, and of the results of its operations for the financial year January 1 – December 31, 2025 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), as applicable to audits of financial statements of public interest entities, and the additional ethical requirements applicable in Denmark to audits of financial statements of public interest entities. We have also 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 non-audit 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 contiguous engagement period of 9 years up to and including the financial year 2025.

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, 2025. 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 completed and in progress Reference is made to note 4.2 and note 4.3 in the financial statements and the accounting policies.

As of December 31, 2025, the carrying amount of development projects completed and in progress combined amounts to EUR 51.5 million (2024: EUR 57.3 million).

Management conducts annual impairment assessments and tests to determine whether the carrying amounts of development projects completed and in progress are considered to be impaired and, hence, should be written down to the recoverable amount. Management determines the recoverable amount applying a discounted cash flow model (value in use) and assigns a nil value to development projects completed and in progress not pursued following the strategic review. Key assumptions used in the impairment tests are estimated revenue, estimated margin, and the applied discount rate.

{158}------------------------------------------------

Management's statement Independent auditor's report Independent auditor's report ESG

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.

How the matter was addressed in our audit

We assessed the appropriateness of valuation of development projects completed and in progress based on the impairment assessments and 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 budgets and business cases
  • tested relevant internal controls related to identification of impairment indicators and evaluation of impairment needs
  • assessed the appropriateness of impairment 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 requirements in IFRS Accounting Standards.

Classification of special items

Reference is made to note 2.4 to the financial statements and the accounting policies.

Income and expenses recognised as special items in 2025 amounts to a net expense of EUR 93.1 million (2024: net expense of EUR 6.4 million).

The classification of income and expenses as special items has a material impact on the presentation of the Group's income statement and affects comparability between periods. In addition, judgements are made by Management in the identification and classification of income and expenses classified as special items due to the non-routine nature of such items. There is also a risk that the Group's accounting policy for special items is not being applied consistently.

The audit of the classification of special items has been considered a key audit matter due to the significance of the amount and significant judgements involved.

How the matter was addressed in our audit

We have assessed the appropriateness of the income and expenses classified as special items and the consistency thereof with the Group's accounting policies. In this context, we

  • evaluated the appropriateness of Management's procedures for classifying income and expenses as special items
  • tested relevant internal controls related to identification and classification of special items
  • assessed whether income and expenses classified as special items represent significant non-recurring transactions of a special nature, different from the Group's ordinary operations
  • on a sample basis, tested income and expenses classified as special items to supporting documentation and assessed the reasonableness of the judgement applied by Management
  • assessed whether disclosures in Note 2.4 Special items in the financial statements are accurate and complete.

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 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 management's review includes the disclosures required by the Danish Financial Statements Act. This does not include the requirements in section 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's 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 section 99a related to the sustainability statement, cf. above. We did not identify any material misstatement in the 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.

{159}------------------------------------------------

Management's statement Independent auditor's report Independent auditor's report ESG

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 skepticism 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 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.

Report on compliance with the ESEF Regulation

As part of our audit of the consolidated financial statements and the parent financial statements of Nilfisk Holding A/S we performed procedures to express an opinion on whether the annual report for the financial year January 1 – December 31, 2025, with the file name NIL-2025-12-31-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;

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• 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, 2025, with the file name NIL-2025-12-31-en.zip, is prepared, in all material respects, in compliance with the ESEF Regulation.

Copenhagen, February 19, 2026

Deloitte

Statsautoriseret Revisionspartnerselskab CVR No. 33963556

Sumit Sudan State Authorised Public Accountant Identification No (MNE) mne33716

Niels Skannerup Vendelbo State Authorised Public Accountant Identification No (MNE) mne34532

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Management's statement Independent auditor's report Independent auditor's report ESG

Independent auditor's limited assurance report on sustainability statement

To the shareholders of Nilfisk Holding A/S

Limited assurance conclusion

We have conducted a limited assurance engagement on the sustainability statement of Nilfisk Holding A/S (the "Group") included in the Management Report (the "Sustainability Statements") for the financial year January 1 – December 31, 2025.

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 section 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 section Double Materiality Assessment; and
  • compliance of the disclosures in subsection EU Taxonomy within Additional information 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.

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.

Other Matter

The comparative information included in the sustainability statement of the Group for the financial year 2023 and previous years was not subject to an assurance engagement. Our conclusion is not modified in respect of this matter.

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 as disclosed in the section Double Materiality Assessment 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.

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Management's statement Independent auditor's report Independent auditor's report ESG

Management is further responsible for the preparation of the Sustainability Statements, in accordance with the Danish Financial Statements Act section 99a, including:

  • compliance with the ESRS;
  • preparing the disclosures in subsection "EU Taxonomy" as disclosed within Additional information 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 in section Double Materiality Assessment of the sustainability statement.

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 section Double Materiality Assessment 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; and
  • 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 19, 2026

Deloitte

Statsautoriseret Revisionspartnerselskab CVR-nr. 33963556

Sumit Sudan Niels Skannerup Vendelbo State Authorised Public Accountant State Authorised Public Accountant Identification No (MNE) mne33716 Identification No (MNE) mne34532

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About Nilfisk

Nilfisk is a global provider of cleaning equipment and solutions, including floorcare machines, vacuum cleaners, and high-pressure washers. Serving a broad range of industries, Nilfisk maintains a strong market presence globally. Nilfisk's growth strategy is driven by targeted product development, high service levels, and close collaboration with customers. Nilfisk operates in a resilient market focused on hygiene, automation, and sustainability. Headquartered in Copenhagen, the company was founded in 1906.

For more information, visit nilfisk.com

Contact

Investors Media
Carl Bandhold Nynne Jespersen Lee
Chief Financial Officer Head of Group Communications
[email protected] [email protected]

Nilfisk's Annual Report 2025 was published on February 19, 2026.

Nilfisk Holding A/S

Marmorvej 8 2100 Copenhagen Ø Denmark Company reg. no. 38 99 88 70

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