Prevas — Interim / Quarterly Report 2024

Oct 25, 2024

99

Increased growth, access to Finland and a new key acquisition in Denmark.

Prevas | Hello Possibility.

The period in brief CEO's comments Prevas in brief Sustainability Financial Information

The period in brief

July - September 2024

• Net turnover amounted to 351.9 MSEK (311.4), an increase of 40.5 MSEK and 13.0 percent. The increase relates to sales from acquisitions made in 2023 and 2024 by 14 percent and organic growth decreased by less than 1 percent.
• The operating profit EBITA* amounted to 26.5 MSEK (31.8), giving an EBITA margin* of 7.5 percent (10.2). The quarter had one working day more than the corresponding period last year. As the extra working day occurred during the holiday period, the effect on EBITA* was limited.
• The operating profit EBIT amounted to 17.9 MSEK (29.3), giving an EBIT margin of 5.1 percent (9.4). EBIT was negatively affected by acquisition related items by 8.2 MSEK (2.4). EBIT adjusted for acquisition-related items was 26.1 MSEK (31.7), resulting in an adjusted EBIT margin of 7.4 percent (10.2).
• Profit after tax amounted to 9.1 MSEK (22.7).
• Profit per share before dilution was 0.75 SEK (1.74) and after dilution was 0.75 SEK (1.73).
• The cash flow from operating activities amounted to -6.7 MSEK (50.4).

January - September 2024

• Net turnover amounted to 1,154.6 MSEK (1,083.4), an increase of 71.2 MSEK and 6.6 percent. Approximately 20 percent of the growth was organic and the remainder came from acquisitions made in 2023 and 2024.
• The operating profit EBITA amounted to 116.3 MSEK (127.2), giving an EBITA margin of 10.1 percent (11.7). The period had one working day more than the corresponding period of the previous year. As the extra working day occurred during the holiday period, the effect on EBITA* was limited.
• The operating profit EBIT amounted to 93.9 MSEK (120.0), giving an EBIT margin of 8.1 percent (11.1). EBIT was negatively affected by acquisition related items by 21.7 MSEK (6.9). EBIT adjusted for acquisition-related costs was 115.6 MSEK (126.9), resulting in an adjusted EBIT margin of 10.0 percent (11.7).
• Profit after tax amounted to 68.4 MSEK (89.5).
• Profit per share before dilution was 5.31 SEK (6.86) and after dilution was 5.31 SEK (6.81).
• The cash flow from operating activities amounted to 83.5 MSEK (123.2).

Significant events during and after the quarter

• Prevas completed the acquisition of Enmac on July 1st, 2024. Through the acquisition, Prevas established a Nordic group with 1,100 employees and operations in Sweden, Norway, Denmark and Finland. For more information about the acquisition, see the note on page 22, the press release from April 23rd, 2024 and the regulatory approval published on June 19th, 2024.

• On October 1st, 2024, Prevas acquired 75 percent of the shares in Design-People, a Danish company at the forefront of industrial and digital product design. The acquisition is expected to have a marginally positive impact on Prevas' earnings per share during the current fiscal year and no acquisition analysis is therefore presented in this report. For more information about the acquisition, see the press release from September 16th, 2024.

13.0%

GROWTH IN TURNOVER THIRD QUARTER

7.5%

EBITA* MARGIN THIRD QUARTER

0.75SEK

THE PROFIT PER SHARE AFTER DILUTION THIRD QUARTER

^* See page 21 for more information regarding recalculation of the key figures.

EBITA development, rolling 12 months Key ratios

	Q3 2024	Q3 2023	Q1-3 2024	Q1-3 2023	12 months Rolling	Full year 2023
Net turnover, MSEK	351.9	311.4	1,154.6	1,083.4	1,553.9	1,482.6
EBITA, MSEK*	26.5	31.8	116.3	127.2	161.3	172.3
EBITA margin, %*	7.5	10.2	10.1	11.7	10.4	11.6
EBIT, MSEK	17.9	29.3	93.9	120.0	136.3	162.4
EBIT margin, %	5.1	9.4	8.1	11.1	8.8	11.0
Profit after tax, MSEK	9.1	22.7	68.4	89.5	99.8	120.9
Profit per share after dilution, SEK	0.75	1.73	5.31	6.81	7.72	9.23
Average number of employees	948	835	910	841	885	850
Number of working days	66	65	189	188	252	251
Net turnover/employee, TSEK	371	373	1,269	1,288	1,755	1,744

The complete table of key ratios can be found on page 21.

^* See page 21 for more information regarding recalculation of the key figures.

Increased sales and increased margin focus

Prevas reports increased sales in the third quarter, but with a lower margin, primarily due to lower utilization rates and market challenges in Finland. Sales in the third quarter increased by 13 percent to 351.9 MSEK (311.4).

We delivered an EBITA of 26.5 MSEK (31.8) and an EBITA margin of 7.5 percent (10.2). Earnings were weaker than expected at the beginning of the quarter but strengthened in September. The quarter contained one working day more than the third quarter last year, but because it fell during the holiday period, the effect was limited. The market was challenging during the quarter, with shifting demand between different customer segments. During the quarter, we continued to both accelerate and slow down – in some regions with weak demand, we reduced the number of employees to secure our margins, while recruiting and growing in regions with good demand. Through measures taken and continued price increases during the quarter, we have created a good position to increase earnings in the event of normalized utilization.

The cash flow from operating activities amounted to -6.7 MSEK (50.4). The difference from the previous year's quarter is mainly attributable to a calendar effect that affected the

timing of supplier payments and the lower profit. Profit per share after dilution was 0.75 SEK (1.73).

Measures to meet the challenging market in Finland

When acquiring Enmac, we were prepared for a short-term weak market situation in Finland. The market has turned out to be even weaker than we expected, which is why we took measures during the third quarter, including layoffs of approximately 25 employees and an increased focus on sales and costs. These measures have helped to reverse the trend, which strengthened the result at the end of the quarter.

We are working intensively to identify new joint business opportunities within the Group and to integrate Enmac into Prevas smoothly. In the short term, these activities have a negative impact on the result, but we are jointly building a strong platform for the future.

Major order to Prevas' largest customer in Finland

We are also seeing positive signals in the Finnish market. Our largest customer in Finland, Valmet Oy, has recently received a record order of EUR 1 billion. We have ongoing discussions about increasing our deliveries to Valmet and have high hopes for a positive effect as early as the fourth quarter of this year.

We have a strong quotation backlog and a clear market focus, which will gradually yield positive results. The acquisition of Enmac is already creating market synergies, and we now have concrete quotes out to several global industrial companies where we can offer larger commitments than each company can do on its own.

Key acquisitions in Denmark

In October, we completed the acquisition of Design-People in Denmark and together we are now creating Denmark's leading development house with a comprehensive offering – from industrial design and user experience to product development and industrialization. Design-People's impressive customer base includes Novo Nordisk, Velux and Danfoss. We see great opportunities to further develop both existing and new customers through our unique joint offering. The takeover of Design-People was completed on October 1st.

We continue to have a strong balance sheet, even after the year's completed acquisitions and we continue to identify new quality acquisitions throughout the Nordic region that can contribute to our development.

Strong established platform

Demand in our growth areas – energy, electrification, sustainability, defense, embedded systems and cyber security – remains as high as in the second guarter of 2024, likewise

the need for more complex solutions, which suits us well. We are also seeing an increase in demand in Life Science. It is also gratifying that during the quarter we received our largest order to date in maintenance systems / EAM in Norway, both in terms of services and recurring license revenues. The order initially comprises approximately SEK 7 million in total, with a probable ramp-up to a total of SEK 25 million over five years.

Prevas now has a solid Nordic platform, which gives us excellent opportunities to build on our long-term strategic relationships with everything from global leading companies to small and medium-sized companies and startups. With approximately 1,100 employees in Sweden, Norway, Denmark and Finland – all driven by helping to solve the world's major challenges with technology – we are well positioned to accelerate our growth.

Hello Possibility - Hello Nordic region!

Västerås, October 25th, 2024

Magnus Welén, CEO Prevas AB

"

Through measures taken and continued price increases during the quarter, we have created a good position to increase earnings in the event of normalized utilization.

Prevas in brief

Prevas is an innovative development house with a focus on product and production development, where ingenuity is at the center. We use great technical expertise and business understanding to help our customers within widely differing industries to gain greater benefits from the technological advances of our time. Good for people, the planet and profits.

We offer a comprehensive range of services and solutions tailored to meet the ever-changing needs of modern industries. With a focus on innovation, technology and expertise, we help companies optimize and streamline their operations, develop their products, improve productivity and achieve sustainability.

Outcome 10 Q1 Q2 Q3 Q4 2022 2023 2024 0 20 25 Q1 Q2 Q3 Q4 2022 2024 The EBITA margin shall rise to at least 12% over time. The growth in turnover shall occur qualitatively and over time reach at least 10% per year, including acquisitions. Net debt/EBITDA R12 shall not exceed 2 over time. The long-term dividend level shall amount to 40-60% of Prevas' profit after tax. EBITA margin* Growth in turnover Net liabilities/EBITDA Dividends 7.5% The margin for the quarter is lower compared to the corresponding quarter last year. 13.0% Growth in turnover comes from acquisitions made in 2023 and 2024. 0.99 Net liabilities/EBITDA R12 for the quarter. 50% Dividend of SEK 4.75 per share for 2023, resulting in a dividend level of 50% of Prevas' profit after tax. Financial goals Historical outcome % % % Q1 Q2 Q3 Q4 2022 2023 ²⁰²⁴ 0 10 20 30 60 2020 2021 2022 2023

Hello Possibility

We solve problems. Many people would say that we do so with different correct. But ingenuity is perhaps even more important. That's what Prevas

Vision & Purpose

Mission

people, planet and profit.

Values

At Prevas we summarize our values with the acronym BOAT - Business Driven, Open Minded, Active and Team Player.

Employee Promise

^* See page 21 for more information regarding recalculation of the key figures.

Industries and customers

We have a very broad customer base with carefully selected customers in different industries – from start-ups, small and medium-sized companies to global companies. The five largest customers in the third quarter were Saab, Ericsson, ABB, Atlas Copco and Getinge, which together account for less than a quarter of our sales.

Division by industry Q1-3 2024

Engineering

The engineering industry is changing through investments in skills and investments in sustainability, digitalization and automation, among other things. We are well positioned with our industry experience and creative approach to technological innovations.

Life science

Our focus includes biotechnology, medical technology and pharmaceuticals. We know the rules and regulatory requirements and how to effectively develop and bring products to the market. In addition, we also provide solutions for manufacturing products.

Products & devices

Product development integrates advanced electronics, design, software and sustainability aspects. Prevas offers the technical expertise and business understanding to be able to launch customers' products quickly on the market.

Defense

The Nordic defense industry supplies the global market with world leading products, solutions and services. Prevas' experience and expertise match the defense industry's requirements for advanced technology, reliability and environmental durability.

Energy

The energy industry has a crucial role to play in making the Nordic region climate neutral. As a strategic expertise partner for the energy and electric power sector, Prevas is at center stage when the sustainable energy systems of the future are developed.

Automotive & transportation

The automotive and transportation industries are affected by several trends, including electrification, autonomy, digitalization, and resource efficiency. Prevas has long experience in delivering smart solutions and is a reliable development partner.

Steel & Minerals

For Prevas, it is important to continue to be involved in developing the fossil-free steelmaking of the future. Our offerings include, among other things, solutions for business management, energy efficiency, automation and environmental monitoring.

Telecoms

Prevas has extensive experience of consulting services in mobile networks and contributes important expertise in radio-related functions. Prevas also supplies central solutions for product traceability and tools for managing equipment to telecom companies.

Sustainability

Prevas and sustainability in brief

The basis of our work with sustainability is being an attractive employer and responsible business partner. This is a prerequisite for us to be able to contribute to sustainable solutions, services and products and to be relevant to our customers. Our ambition is to attract the best talents to ensure that we are as competitive tomorrow as we are today. We strongly believe that much good can be done with technology, thanks to human ingenuity, creativity and innovation.

Focus

• Our customers should experience that we at Prevas create increased value.
• We will actively develop as a team and as individuals.
• We will actively contribute to a climate-neutral world.
• We will increase revenues and profits.

Prevas' sustainability work can be linked to several of the UN's Sustainable Development Goals.

You can read more in the 2023 Annual and Sustainability Report on pages 20-21.

Ingenuity will save the world

Prevas' vision is to do good by combining ingenuity and advanced technology. Areas that are developing rapidly are machine learning and generative AI. We see great opportunities to use these technologies to accelerate change, both internally and at our customers. We currently use AI on behalf of our customers, in areas such as image processing, optimization and to streamline our deliveries, for example in software

To stay at the forefront of technology, we work closely with academia, customers and partners. Together with SSAB and Celsa, we are participating in a research project within Horizon Europe, with the aim of improving the energy efficiency and product quality in European steel production. The goal is to develop an operator support model based on a self-learning model that manages the entire process chain for steelmaking via a digital twin. The effect will be lower CO2 emissions and higher quality.

One example is our AI bot for HR, Maia, which helps our employees get quick answers to questions in the HR field. Maia retrieves information from the employee handbook, collective agreeboth employees and managers.

At Prevas, we see AI as a tool to free up time for more innovation and create greater customer value. We are a forward-looking organization; we believe that ingenuity will save the world!

Financial Information The Group

Turnover

July - September

Net turnover amounted to 351.9 MSEK (311.4), an increase of 40.5 MSEK and 13.0 percent. The increase relates to sales from acquisitions made in 2023 and 2024 by 14 percent and organic growth decreased by less than 1 percent.

Net turnover per employee amounted to 371 TSEK (373).

January - September

Net turnover amounted to 1,154.6 MSEK (1,083.4) an increase of 71.2 MSEK and 6.6 percent. Approximately 20 percent of the growth was organic and the remainder came from acquisitions made in 2023 and 2024.

The number of working days amounted to 189 (188). Net turnover per employee amounted to 1,269 TSEK (1,288).

Profit/loss

July - September

Operating profit/loss before depreciation and write downs EBITDA* amounted to 37.9 MSEK (41.6) which gives an EBITDA margin* before depreciation/amortization and write downs of 10.8 percent (13.4).

The operating profit EBITA* amounted to 26.5 MSEK (31.8), giving an EBITA margin* of 7.5 percent (10.2).

The operating profit EBIT amounted to 17.9 MSEK (29.3), giving an EBIT margin of 5.1 percent (9.4). EBIT was

negatively affected by acquisition related items by 8.2 MSEK (2.4). EBIT adjusted for acquisition-related items was 26.1 MSEK (31.7), resulting in an adjusted EBIT margin of 7.4 percent (10.2). Acquisition-related items are reported in the income statement under the headings Other external items 4.9 MSEK (0.3), Personnel expenses 0.4 MSEK (0.4) and Amortization of intangible fixed assets 2.9 MSEK (1.7).

Financial net were negatively impacted by the revaluation of contingent considerations of -0.2 MSEK and increased interest expenses of -3.0 MSEK attributable to loans taken in connection with the acquisition of Enmac.

Profit after tax amounted to 9.1 MSEK (22.7).

The quarter had one working day more than in the corresponding quarter last year. Because this working day occurred during the holiday period, the effect on operating results EBITDA, EBITA and EBIT was limited.

January - September

Operating profit/loss before depreciation/amortization and write downs EBITDA amounted to 146.4 MSEK (152.9) which gives an EBITDA margin before depreciation/amortization and write downs of 12.7 percent (14.1).

The operating profit EBITA* amounted to 116.3 MSEK (127.2), giving an EBITA margin* of 10.1 percent (11.7).

The operating profit EBIT amounted to 93.9 MSEK (120.0),

Net turnover, MSEK

Turnover by segment, Q1-3 2024

EBITA and EBITA margin

^* See page 21 for more information regarding recalculation of the key figures.

giving an EBIT margin of 8.1 percent (11.1). EBIT was negatively affected by acquisition related items by 21.7 MSEK (6.9). EBIT adjusted for acquisition related items was 115.6 MSEK (126.9), which gave an adjusted EBIT margin of 10.0 percent (11.7). Acquisition-related items are reported in the income statement under the headings Other external items 14.0 MSEK (0.6), Personnel expenses 1.1 MSEK (1.1) and Amortization of intangible fixed assets 6.6 MSEK (5.2).

Financial net were positively impacted by the revaluation of contingent considerations of 1.3 MSEK and negatively impacted by increased interest expenses of -3.0 MSEK attributable to loans taken in connection with the acquisition of Enmac. The financial net for the corresponding period previous year included costs for synthetic options of -3.2 MSEK.

Profit after tax amounted to 68.4 MSEK (89.5).

The period had one working day more than in the corresponding quarter last year. Because this working day occurred during the holiday period, the effect on operating results EBITDA, EBITA and EBIT was limited.

Cash flow, cash and cash equivalents and financing

July - September

Cash flow from operating activities for the quarter amounted to -6.7 MSEK (50.4). The difference in cash flow compared to the corresponding quarter last year can mainly be attributed to a calendar effect that influenced the timing of supplier payments, as well as lower earnings. The calendar effect meant that the last day of Q2 2024 fell on a weekend, and the supplier payments were made on the following weekday, which is reflected in the change in operating liabilities.

Financing activities were negatively affected by the fact that the last calendar day of the previous period fell on

a weekend, which is why the amortization for the second quarter of 5,6 MSEK affected the first working day in July.

As a result of the acquisition of Enmac and to facilitate future acquisitions, the company raised loans of 132 MSEK and 6 MEUR on July 1st 2024, and signed an overdraft facility of 100 MSEK at the end of June. The new loans have not resulted in any additional covenants. In connection with the acquisition, a final amortization of an external loan with Enmac of 72.8 MSEK was made.

Available cash and cash equivalents at the end of the quarter amounted to 33.2 MSEK (101.5). The overdraft facility was utilized in the amount of 10.5 MSEK (0).

January - September

The cash flow from operating activities amounted to 83.5 MSEK (123.2).

As a result of the acquisition of Enmac, and to facilitate future acquisitions, the company raised loans of 132 MSEK and 6 MEUR on July 1st 2024, and signed an overdraft facility of 100 MSEK at the end of June. In connection with the acquisition, a final amortization of an external loan with Enmac of 72.8 MSEK was made.

Subscription to new shares through the warrant program LTI 2021/2024 has had a positive impact on cash flow of 5.5 MSEK.

During the period, a dividend of 62.6 MSEK (58.4) was paid. Available liquid funds at the end of the quarter amounted to 33.2 MSEK (101.5). The overdraft facility has been utilized in the amount of 10.5 MSEK.

It is the judgment of the Board that Prevas has a financing situation appropriate for the company's future planning.

Number of employees, average

CASH FLOW FROM OPERATING ACTIVITIES THIRD QUARTER

Prevas' customer satisfaction during the quarter was 9.3 (scale from 1 to 10).

^* See page 21 for more information regarding recalculation of the key figures.

Financial position

Equity for the Group at the end of the period amounted to 671.1 MSEK (592.6), resulting in an equity ratio of 48.3 percent (60.8). Equity attributable to owners of parent company amounted to 48.28 SEK (45.22) per share before dilution and 48.28 SEK (45.22) per share after dilution.

Right of use assets increased to 164.9 MSEK (54.3), which was mainly explained by the acquisition of Enmac and the revalu ation of terms of use for premises during the quarter.

Provisions increased to 6.0 MSEK (1.7), which was mainly explained by increased provisions for pension provisions.

Prevas' balance sheet remains strong after the acquisition of Enmac and net debt/EBITDA was assessed as being well below our target of 2 also in the coming quarter.

Employees

The average number of employees during the quarter amounted to 948 (835), of which 703 (712) were in Sweden, 71 (77) in Denmark, 131 (0) in Finland, 17 (19) in other segments and 26 (27) were centrally employed. The number of employees at the end of the quarter was 1,082 (888). The proportion of female employees was 18.6 percent (20.0).

Investments

July - September

During the year, the group's investment in assets amounted to 0.5 MSEK (0.6), of which 0.5 MSEK (0.6) covered machinery and equipment.

January - September

During the period, the group's investment in assets amounted to 5.1 MSEK (4.0), of which 5.1 MSEK (4.0) covered machinery and equipment.

Significant events during and after the quarter

On July 1, 2024, Prevas acquired 91.5 percent of the Finnish company NMAC Group Oy, the parent company of the

Enmac Group ("Enmac"). Regulatory approval was given at the end of June with an effective date of July 1, 2024. Enmac has a strong position in the Finnish market in growth areas such as energy, industrial automation and process industry, with approximately 200 employees and a turnover of 23 MEUR in 2023. The acquisition, which is Prevas' first in Finland, establishes a Nordic group with operations in Sweden, Norway, Denmark and Finland. The acquisition enables future market synergies and is in line with Prevas' growth strategy.

Acquired shares are valued at 214.1 MSEK as of the closing date and payment was made in cash. The purchase price was financed by acquisition loans of 132 MSEK and 6 MEUR and available liquid funds. In addition to the reported purchase price there are conditions for contingent considerations. For more information about the acquisition, see page 22 and the press release on the company website prevas.se.

During the third quarter, Prevas signed an agreement to acquire 75 percent of the shares in Design-People, a Danish company that is at the forefront of industrial and digital product design. Completion took place on October 1st 2024.

Operational strength key ratios, projects in time

Customer satisfaction, delivery precision and warranty work are continuously metered as part of the company's certified quality system. Since starting in 1985, Prevas has had a very high number of satisfied customers and uniquely high quality ratings regarding delivery precision and warranty . Prevas' customer satisfaction during the quarter was 9.3 (scale from 1 to 10).

The Parent Company

July - September

Turnover amounted to 172.4 MSEK (177.7) and the profit after financial items amounted to 13.6 MSEK (16.1).

January - September

Turnover amounted to 612.5 MSEK (615.6) and the profit after financial items amounted to 59.7 MSEK (63.0).

Risks and uncertainty factors

Prevas is relatively unaffected by the aggressive and terrible invasion of Ukraine, which has resulted in so much human suffering. Prevas has no employees, partners or customer assignments in Russia or Ukraine. Other aspects such as inflation, problems with transport, raw goods, materials and semiconductor components create overall uncertainty for the future and especially for our customers. These are risks that are difficult to assess, and Prevas' strategy to address them is to be as adaptable and dynamic a company as possible.

The market remains strong in areas such as automation, electrification, energy and the defense industries and work with sustainability. In other areas Prevas can see a more normalized market compared to previous report periods. Prevas has a good influx of assignments, enquiries and other opportunities. Prevas experiences a competitive labor market where it is important to work actively with employer branding. In order to both retain staff and to attract new employees to Prevas. Prevas has worked for a number of years to establish itself as an attractive employer. A job that turned out well. The fact that Prevas is seen as an attractive employer with exciting assignments and development opportunities will continue to be important factors in the future.

Increasing requirements are placed on information security. With the digitalization of society, the risk of confidential data being stolen, disseminated to unauthorized persons and thus causing damage is increasing. Prevas works actively with systematic information security, which means continuously working preventively, and adapting the protection based on the organization's needs and risks.

It is Prevas' assessment that the risks are generally unchanged during 2024. More information about Prevas' risks and their management can be found in the Annual Report for 2023. It is the company's evaluation that the risks are the same as for the parent company.

Transactions with affiliated bodies

Any transactions of this type were reported in the 2023 Annual Report under note 27 and are largely attributable to purchases and sales between companies within the group.

Accounting principles

This interim report has been prepared in accordance with IAS 34 Interim reports. The group report has been prepared in accordance with International Financial Reporting Standards, IFRS, as adopted by the EU, and where relevant Swedish legislation regarding annual reports. The parent company accounts have been prepared in accordance with the Annual Accounts Act and recommendation RFR 2 Accounts for legal entities. The same reporting principles and calculation methods have been used in this report as in the most recent annual report. No other changes to other standards have affected the report in 2024.

Financial instruments

Reported value of liquid funds, account receivables, generated but unbilled income, interest bearing liabilities and suppliers' liabilities are considered to make up an approximation of the actual value of these receivables and liabilities.

Västerås, October 25, 2024 Prevas AB (publ)

Magnus Welén, CEO Prevas AB

Financial Calendar

Year End Report 2024, Feb 11th 2025.

Interim report Jan–March 2025, May 6th 2025.

Interim report Jan–June 2025, July 17th 2025.

Interim report Jan– Sept 2025, Oct 24th 2025.

Year End Report 2025, Feb 10th 2026.

This information is such that Prevas AB (publ) is required to make public in accordance with EU regulations to prevent market abuse and the Securities Market Act.

The information was submitted for publication, through the agency of the contact persons set out on this page, at 08:30 a.m. CET on October 25th, 2024.

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

Contact

Magnus Welén, CEO +46(0)21-360 19 00 +46(0)70-593 44 57 magnus.welen@prevas.se

Helena Burström, CFO +46(0)21-360 19 00 +46(0)72-201 11 14 helena.burstrom@prevas.se

Auditor's report regarding

Review of the interim report

To the Board of Prevas AB (publ) company reg. no. 556252-1384

Introduction

We have carried out a review of the financial interim information in summary (interim report) for Prevas AB (publ) as per September 30th 2024 and the nine month period to that date. The Board and the Chief Executive Officer have the responsibility for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish legislation regarding annual reports. It is our responsibility to state our conclusions about this interim report based on this overall review.

The intention and scope of the overall review

We have conducted our limited review in accordance with International Standard on Review Engagements (ISRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A limited review consists of making inquiries, primarily to individuals responsible for financial and accounting matters, performing analytical reviews, and undertaking other limited review procedures. A limited review has a different focus and is considerably less extensive compared to the focus and scope of an audit performed in accordance with International Standards on Auditing and generally accepted auditing standards.

The review procedures conducted in a limited review do not enable us to obtain such assurance as would make us aware of all significant matters that might have been identified if an audit had been performed. Therefore, the conclusion expressed based on a limited review does not carry the same level of assurance as a conclusion based on an audit.

Conclusion

Based on our review, no circumstances have arisen that have given us reason to believe that the interim report has not, in all material respects, been prepared by the company in accordance with IAS 34 and the relevant Swedish legislation regarding annual reports, and for the parent company in accordance with the relevant Swedish legislation regarding annual reports.

Västerås October 25th 2024 Ernst & Young AB

Per Modin Chartered Accountant

Condensed statements of profit/loss The Group

SEK thousand	Q3 2024	Q3 2023	Q1-3 2024	Q1-3 2023	Full year 2023
Net turnover	351,903	311,359	1,154,619	1,083,358	1,482,639
Other operating income	467	–	467	19	38
Other external expenses	-104,278	-88,052	-341,244	-310,790	-427,353
Personnel expenses	-215,438	-182,373	-682,572	-621,355	-850,679
Amortization intangible fixed assets	-3,323	-1,843	-7,248	-5,548	-7,496
Amortization right of use assets	-10,311	-8,954	-27,102	-23,133	-31,372
Depreciation tangible fixed assets	-1,124	-859	-3,007	-2,544	-3,420
Operating profit, EBIT	17,896	29,278	93,913	120,007	162,357
Financial net	-4,219	-327	-2,213	-4,524	-2,397
Profit after financial items	13,677	28,951	91,700	115,483	159,960
Income tax	-4,614	-6,294	-23,346	-25,954	-39,019
Profit for the period	9,063	22,657	68,354	89,529	120,941
Profit for period attributable to parent
company owners	9,634	22,116	67,996	87,324	118,195
Profit for period attributable to non-controlling interests	-571	541	358	2,205	2,746
Profit per share before dilution, SEK	0.75	1.74	5.31	6.86	9.28
Profit per share after dilution, SEK	0.75	1.73	5.31	6.81	9.23

Condensed statement of comprehensive income

The Group

SEK thousand	Q3 2024	Q3 2023	Q1-3 2024	Q1-3 2023	Full year 2023
Profit for the period Items that later can be implemented in the period's profit/loss;	9,063	22,657	68,354	89,529	120,941
Exchange differences on translating foreign operations	-998	-1,109	493	1,399	-1,182
Total profit for the period after tax	8,065	21,548	68,847	90,928	119,759
Total profit for period attributable to parent company owners	8,636	21,007	68,489	88,723	117,013
Total profit for period attributable to non-controlling interests	-571	541	358	2,205	2,746

Condensed balance sheets

The Group

SEK thousand	Sept 30th 2024	Sept 30th 2023	Dec 31st 2023
Goodwill	654,831	372,931	405,626
Other intangible fixed assets	48,188	31,992	32,107
Tangible fixed assets	14,552	10,675	10,256
Rights-of-use assets	164,901	54,334	53,710
Deferred tax asset	36,823	2,676	2,973
Financial assets	3,404	1,277	2,327
Total fixed assets	922,700	473,885	506,999
Inventory	2,837	9,298	13,179
Current receivables	430,670	389,399	427,860
Cash and cash equivalents	33,247	101,504	112,328
Total current assets	466,754	500,201	553,367
TOTAL ASSETS	1,389,454	974,086	1,060,366

SEK thousand	Sept 30th 2024	Sept 30th 2023	Dec 31st 2023
Equity attributable to owners of parent company	617,996	575,963	604,517
Equity attributable to non-controlling interests	53,139	16,682	35,130
Equity	671,135	592,645	639,647
Deferred tax liability	74,852	32,005	38,886
Provisions	5,997	* 1,734	2,324
Long-term non-interest bearing liabilities	3,483	4,600	6,657
Long term interest bearing liabilities	263,150	34,315	26,329
Total non-current liabilities	347,482	72,654	74,196
Overdraft facility	10,504	–	–
Current interest bearing liabilities	95,275	50,114	46,421
Other interest bearing liabilities	265,057	258,673	300,102
Total current liabilities	370,837	308,787	346,523
TOTAL LIABILITIES AND EQUITY	1,389,454	974,086	1,060,366

^*) Previous year's amount classified as Current provisions, has been reclassified to Provisions.

Changes in equity The Group

SEK thousand	Sept 30 2024	Sept 30 2023	Full year 2023
Opening balance	639,647	566,733	566,733
Total of total earnings for period attributable to parent company owners	68,489	88,723	117,013
Total of total earnings for period attributable to non-controlling interests	358	2,205	2,746
Changes in ownership attributable to non-con trolling interests	19,790	-6,800	11,372
Dividend attributable to non-controlling interests	–	-1,132	-1,132
Issue shares/warrants, LTI 2021/2024 respectively LTI 2023/2026	5,490	231	231
Dividend	-62,639	-57,316	-57,316
Closing balance	671,135	592,644	639,647
Equity attributable to owners of parent company	617,996	575,963	604,517
Equity attributable to non-controlling interests	53,139	16,682	35,130

Condensed cashflow analysis

The Group

SEK thousand	Q3 2024	Q3 2023	Q1-3 2024	Q1-3 2023	Full year 2023	SEK thousand	Q3 2024	Q3 2023	Q1-3 2024	Q1-3 2023	Full year 2023
ONGOING OPERATIONS						FINANCING OPERATIONS
Profit after financial items Adjustments for items not included in cash	13,677	28,951	91,700	115,482	159,960	Amortization of lease liabilities Acquisition of shares from non-controlling	-8,929	-7,926	-25,269	-23,178	-30,890
flow	13,611	12,327	36,613	24,001	32,022	interests	–	–	–	-6,800	-6,800
Paid income tax	-10,430	-7,355	-42,555	-34,004	-43,661	Dividends	–	–	-62,639	-58,448	-58,448
Cash flow from operating activities before change to working capital	16,858	33,923	85,758	105,479	148,321	Issue shares/warrants, LTI 2021/2024 respectively LTI 2024/2026	–	–	5,490	231	231
						Change of overdraft facility	10,504	–	10,504	–	–
Changes in inventories	1,170	-4,867	11,043	-7,554	-11,454	Repayment of loans	-92,302	–	-97,927	-11,250	-22,500
Changes in operating receivables	42,769	42,618	43,687	36,651	17,977	Take up of loans	199,946	–	199,946	–	–
Changes in operating liabilities	-67,534	-21,301	-57,032	-11,351	9,604	Cash flow from financing operations	109,219	-7,926	30,105	-99,445	118,407
Cash flow from ongoing operations	-6,737	50,373	83,456	123,225	164,448
						Cash flow for the period	-86,516	41,625	-80,087	19,134	31,017
INVESTMENT ACTIVITIES Acquisition of business and shares inclusive						Cash and cash equivalents, start of period	119,729	59,910	112,328	82,665	82,665
cash and cash equivalents	-188,479	–	-188,479	-373	-10,601	Exchange differences on cash and
Investment in tangible fixed assets	-519	-822	-5,169	-4,273	-4,423	cash equivalents	33	-31	1,006	-295	-1,354
Cash flow from investment activities	-188,998	-822	-193,648	-4,646	-15,024	Cash and cash equivalents, end of period	33,247	101,504	33,247	101,504	112,328

Quarter overview

The Group

	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023	Q4 2022	Q3 2022	Q2 2022	Q1 2022
Net turnover, MSEK	351.9	395.6	407.1	399.3	311.4	377.7	394.3	389.7	283.4	335.3	315.6
EBITA* profit/loss, MSEK	26.5	36.2	53.5	45.0	31.8	35.7	59.7	52.8	33.3	35.2	45.4
EBITA* margin, %	7.5	9.2	13.2	11.3	10.2	9.5	15.1	13.6	11.7	10.5	14.4
EBIT profit/loss, MSEK	17.9	31.8	44.2	42.4	29.3	33.0	57.8	50.5	31.8	33.6	43.3
EBIT margin, %	5.1	8.0	10.9	10.6	9.4	8.7	14.7	13.0	11.2	10.0	13.7
Number of working days	66	60	63	63	65	59	64	64	66	60	63
Number of employees at end of period	1,082	899	902	915	888	899	887	882	859	843	781
Number of employees, average	948	854	865	874	835	847	837	808	776	789	752
Net turnover/employee, TSEK	371	463	471	457	373	446	471	482	365	425	420
Equity ratio, %	48.3	58.2	60.9	60.3	60.8	59.0	59.3	56.9	60.8	56.3	59.7
Profit/share before dilution, SEK	0.75	2.02	2.56	2.42	1.74	1.92	3.20	2.74	1.94	2.16	2.47
Profit/share after dilution, SEK	0.75	2.01	2.54	2.42	1.73	1.90	3.18	2.74	1.94	2.16	2.46
Equity/share before dilution, SEK	48.28	47.78	50.20	47.46	45.22	43.57	46.04	42.99	40.17	38.14	39.41
Equity/share after dilution, SEK	48.28	47.57	49.96	47.22	44.94	43.22	45.67	42.88	40.17	38.14	38.22

^* See page 21 for more regarding recalculation of the key figures.

Operating segments

July - September 2024

SEK thousand	Sweden	Denmark	Finland 3	Other	Corporate and To	tal Group
Sales to external customers	264,583	38,112	36,667	12,541	_ ;	351,903
Other operating income			467			467
Sales to other segments	700	-5	_	_	-695
Profit before depreciation/amortization, $EBITDA^{2)}$	24,534	2,320	-1,046	580	11,537 1)	37,926
Amortizations/depreciations	-3,777	-21	-1,502	-33	-9,425 1)	-14,758
Acquisition-related items					-5,273	-5,273
Operating profit, EBIT	20,757	2,299	-2,548	547	-3,161	17,895
Operating profit, EBITA	23,613	2,299	-1,194	547	1,226	26,491
Financial items					-4,219	-4,219
Profit after financial items						13,677

January - September 2024

SEK thousand	Sweden	Denmark	Finland 3	Other	Corporate and eliminations
Sales to external customers	956,803	117,956	36,667	43,192	- 1,154,619
Other operating income			467		467
Sales to other segments	2,295	277	0	22	-2,594
Profit before depreciation/amortization, EBITDA 2)	103,699	9,403	-1,046	4,656	29,650 1) 146,362
Amortizations/depreciations	-11,346	-64	-1,502	-104	-24,341 1) -37,357
Acquisition-related items					-15,092 -15,092
Operating profit, EBIT	92,353	9,339	-2,548	4,552	-9,783 93,913
Operating profit, EBITA	101,007	9,339	-1,194	4,552	2,548 116,252
Financial items					-2,213 -2,213
Profit after financial items					91,700

¹⁾ Leasing according to IFRS 16 that is applied at Group level is not recorded by the different segments.

July - September 2023⁴⁾

SEK thousand	Sweden	Denmark	Other	Corporate and eliminations	Total Group
Sales to external customers	265,524	33,462	12,227	-	311,213
Other operating income
Sales to other segments	17	_	130	-147
Profit before depreciation/amortization, ${\sf EBITDA}^{2)}$	33,465	2,673	2,236	3,275 1)	41,649
Amortizations/depreciations	-3,392	-30	-50	-8,184 1)	-11,657
Acquisition-related items				-715	-714
Operating profit, EBIT	30,072	2,643	2,186	-5,624	29,278
Operating profit, EBITA	32,686	2,643	2,186	-5,679	31,836
Financial items				-327	-327
Profit after financial items					28,951

January - September 2023⁴⁾

SEK thousand	Sweden	Denmark	Other	Corporate and Total Group eliminations
Sales to external customers	912,647	121,930	47,772	- 1,082,349
Other operating income
Sales to other segments	177	405	427	-1,009
Profit before depreciation/amortization, EBITDA 2)	126,106	11,507	10,882	4,401 1) 152,899
Amortizations/depreciations	-10,146	-108	-147	-20,824 1) -31,224
Acquisition-related items				-1,669 -1,669
Operating profit, EBIT	115,963	11,399	10,735	-18,092 120,007
Operating profit, EBITA	123,820	11,399	10,735	-18,732 127,223
Financial items				-4,524 -4,524
Profit after financial items				115,483

^<sup>3) Finland is a new segment following the acquisition of Enmac as of July 1, 2024.

^<sup>2) See page 21 for more regarding recalculation of the key figures.

^<sup>4) Reclassification regarding the accounting for amortization of intangible assets in segment reporting has been made to enhance comparability.

Sales to external customers by segment

July - September 2024 July - September 2023

Industries	Sweden	Denmark	Finland	Other	Total Group
Energy	23,945	10,005	2,999	1,213	38,163
Automotive and transport	24,804	15	–	–	24,819
Defense	34,504	381	2,705	–	37,591
Life science	34,817	9,834	–	390	45,040
Products and units	24,859	8,543	1,739	–	35,141
Steel and minerals	24,049	–	3,769	1,149	28,967
Telecoms	18,671	8	–	–	18,679
Engineering	54,645	6,411	22,844	3,591	87,491
Other	24,288	2,916	2,610	6,199	36,013
Total	264,583	38,112	36,667	12,541	351,903

January - September 2024 January - September 2023

Industries	Sweden	Denmark	Finland	Other	Total Group
Energy	76,887	30,797	2,999	3,938	114,621
Automotive and transport	92,499	402	–	–	92,901
Defense	127,523	1,092	2,705	–-	131,320
Life science	138,282	33,472	–-	1,282	173,036
Products and units	95,367	27,621	1,739	–	124,727
Steel and minerals	88,136	–	3,769	3,081	94,986
Telecoms	66,732	325	–-	–	67,058
Engineering	190,234	18,223	22,844	14,730	246,032
Other	81,143	6,023	2,610	20,161	109,938
Total	956,803	117,956	36,667	43,192	1,154,619

Industries	Sweden	Denmark	Other	Total Group
Energy	13,296	13,197	2,631	29,124
Automotive and transport	23,148	124	–	23,272
Defense	22,751	1,166	–	23,917
Life science	39,771	9,071	1,032	49,874
Products and units	25,901	4,941	–	30,842
Steel and minerals	23,368	–	465	23,833
Telecoms	22,766	397	–	23,163
Engineering	52,898	4,281	3,267	60,446
Other	39,344	2,591	4,953	46,888
Total	263,243	35,768	12,348	311,359

Industries	Sweden	Denmark	Other	Total Group
Energy	49,108	47,490	6,580	103,178
Automotive and transport	78,874	354	–	79,228
Defense	87,215	4,008	–	91,223
Life science	151,851	27,135	2,097	181,083
Products and units	90,050	18,786	–	108,836
Steel and minerals	72,087	–	2,007	74,094
Telecoms	78,627	1,376	–	80,003
Engineering	185,883	13,304	14,228	213,415
Other	119,558	9,315	23,425	152,298
Total	913,253	121,768	48,337	1,083,358

Key ratios

The Group

SEK thousand	Q3 2024	Q3 2023	Q1-3 2024	Q1-3 2023	Full year 2023
EBITDA margin* before depreciation/ amortization and write downs	10.8 %	13.4%	12.7%	14.1%	14.0%
EBITA margin*	7.5%	10.2%	10.1%	11.7%	11.6%
EBIT margin	5.1%	9.4%	8.1 %	11.1%	11.0 %
Operating margin	3.9%	9.3%	7.9%	10.7%	10.8 %
Average number of shares outstanding, thousand
before dilution	12,885	12,737	12,799	12,737	12,737
after dilution	12,885	12,817	12,799	12,817	12,801
Profit per share before dilution, SEK	0.75	1.74	5.31	6.86	9.28
Profit per share after dilution, SEK	0.75	1.73	5.31	6.81	9.23
Equity per share before dilution, SEK			48.28	45.22	47.46
Equity per share after dilution, SEK			48.28	44.94	47.22
Equity ratio			48.3%	60.8 %	60.3 %
Return on capital employed			11.1%	18.0%	23.8 %
Return on equity			10.4%	15.4%	20.1 %
Average number of employees	948	835	910	841	850
Number of working days	66	65	189	188	251
Net turnover per employee, TSEK	371	373	1,269	1,288	1,744
Turnover per employee, TSEK	372	373	1,270	1,288	1,744

Definitions of key ratios, see pages 79-80 in Prevas annual report 2023 and calculations on the website www.prevas.se/rapporter.

Acquisition-related items The Group

SEK thousand	Q3 2024	Q3 2023	Q1-3 2024	Q1-3 2023	Full year 2023
Amortization of acquisition-related intangible assets	-2,940	-1,729	-6,636	-5,205	-7,025
Transaction costs	-4,898	-340	-13,967	-544	-908
Costs of future services received	-375	-375	-1,125	-1,125	-1,500
Acquisition-related items	-8,212	-2,444	-21,728	-6,874	-9,433

^* The definition of EBITDA and EBITA were adjusted in Q1 2024 for the purpose of improving analysis of the operating activities between periods. Acquisition related items and amortizations of intangible assets are no longer included in EBITDA and EBITA. Amortizations of acquisition related intangible assets and revaluing and present value calculation of contingent considerations have, as previously, no impact on EBITDA and EBITA. See our definition of EBITDA and EBITA on the website at www.prevas.se/rapporter.

Acquisitions

The Group

On July 1, 2024, Prevas acquired 91.5 percent of the Finnish company NMAC Group Oy, the parent company of the Enmac Group ("Enmac"). Regulatory approval was given at the end of June with an effective date of July 1, 2024. Enmac has a strong position in the Finnish market in growth areas such as energy, industrial automation and process industry, with approximately 200 employees and a turnover of 23 MEUR in 2023. The acquisition, which is Prevas' first in Finland, establishes a Nordic group with operations in Sweden, Norway, Denmark and Finland. The acquisition enables future market synergies and is in line with Prevas' growth strategy.

Acquired shares were valued at 214,107 TSEK as of the closing date and payment was made in cash. Related to the acquisition, there are contingent consideration payments based on future results. At the time of acquisition, the contingent considerations have been valued at zero. The purchase price was financed by acquisition loans of 132,000 TSEK and 6,000 TEUR and available liquid funds. In connection with the acquisitions, goodwill of 140,885 TSEK arose as a difference between the compensation transferred and the fair value of the net assets acquired. Goodwill relates mainly to human capital in the form of employee skills and revenue synergies, as more combinations of solutions can be offered to customers, as well as some cost synergies. Goodwill is not expected to be tax deductible. Transaction costs related to the acquisition amounted to 13,188 TSEK. The transaction costs were recognized as an expense in the consolidated income statement under the category Other external expenses. In connection with the acquisition, Prevas paid off a loan that Enmac had with an external bank amounting to 72,802 TSEK. The acquisition had an impact on cash flow of -61,509 TSEK.

Enmac constitutes a new segment, Finland, which was added in the third quarter of 2024. For more information about the quarter, see page 19, Operating Segments. If the acquisition had been completed on January 1, 2024, the revenue for the Finland segment for the period would have amounted to 147,856 TSEK, and the group's results would have been affected by -7,647 TSEK.

	Actual value
Acquired net assets at the point of acquisition
Intangible Assets	131,205
Tangible fixed assets	2,103
Current receivables	42,236
Prepaid costs and accrued income	5,275
Inventory	695
Cash and cash equivalent	25,628
Equity attributable to non-controlling interests	-19,775
Long term interest bearing liabilities	-61,656
Current interest bearing liabilities	-5,365
Deferred tax liability	-4,483
Accounts payable and other current liabilities	-42,640
Identified net assets	73,223

	Actual value
Goodwill	140,885
Total purchase price	214,107
Purchase price consists of:
Cash	214,107
Contingent considerations	–
Total purchase price	214,107
The impact of the acquisition on the Group cashflow
Cash part of purchase price	-214,107
Cash (acquired)	25,628
Net	-188,479
Loan acqusitions for financing of the acquisition	199,772
Net Cash flow	11 293
Installment loans Enmac	-72,802
Net Cash flow including installament of loans Enmac	-61,509
Cashflow from financing operations	199,772
Cashflow from investment activities	-188,479

Condensed statements of profit/loss The Parent Company

SEK thousand	Q3 2024	Q3 2023	Q1-3 2024	Q1-3 2023	Full year 2023
Net turnover	172,360	177,743	612,526	615,595	837,928
Other operating income	–	–	–	19	19
Other external expenses	-63,092	-64,540	-220,968	-221,618	-303,526
Personnel expenses	-89,396	-93,735	-320,258	-323,006	-436,929
Amortization intangible fixed assets	-2,779	-2,419	-8,343	-7,272	-11,145
Depreciation tangible fixed assets	-215	-292	-828	-842	-1,140
Operating profit, EBIT	16,878	16,757	62,129	62,876	85,207
Profit from shares in Group companies	-157	–	1,468	5,333	5,697
Interest income and similar profit items	1,723	574	4,117	2,003	2,663
Interest costs and similar profit items	-4,846	-1,249	-8,034	-7,209	-9,578
Profit after financial items	13,598	16,082	59,680	63,003	83,989
Tax allocation reserve	–	–	–	–	-23,500
Income tax	-3,825	-3,950	-14,539	-14,018	-18,152
Profit for the period	9,773	12,132	45,141	48,985	42,337

Condensed balance sheets

The Parent Company

SEK thousand	Sept 30 2024	Sept 30 2023	Dec 31 2023
Intangible fixed assets	26,445	31,395	34,789
Tangible fixed assets	2,504	2,950	2,735
Financial fixed assets	623,894	317,521	326,853
Inventory	656	783	673
Current receivables	192,095	222,029	234,533
Cash and Bank	–	89,474	93,771
Total assets	845,594	664,152	693,354

SEK thousand	Sept 30 2024	Sept 30 2023	Dec 31 2023
Restricted equity Non-restricted equity	42,178 233,986	41,807 250,875	41,807 244,226
Equity	276,164	292,682	286,033
Untaxed reserves	72,500	49,000	72,500
Provisions	12,290	* 7,832	13,904
Long term interest bearing liabilities	141,600	5,625	–
Overdraft facility	10,686	–	–
Current interest bearing liabilities	55,575	28,125	22,500
Other short term liabilities	276,779	280,888	298,417
Total liabilities and Equity	845,594	664,152	693,354

^*) The amount that in the previous year was classified as Long-term interest-bearing liabilities has been reclassified as Provisions.

Invitation to presentation of Prevas' interim report Jan-Sept 2024.

A press and analyst presentation will be held on Friday, October 25th at 9:30 a.m. CET, which can be followed via webcast https://www.finwire.tv/webcast/prevas/q3-2024/

About Prevas

product and production development, where ingenuity is at the center. We use great technical expertise and business underof our time. Good for people, the planet and profits. Prevas was founded in 1985 and currently has 1,100 employees in Sweden, Finland, Denmark and Norway. Prevas has been listed on NASDAQ Stockholm since 1998. For more information about

Prevas AB Org. no. 556252-1384 Box 4 • Glödgargränd 14 • SE-721 03 Västerås info@prevas.se • +46 21-360 19 00 • www.prevas.com