Interim report
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Interim Report Q3 JANUARY – SEPTEMBER 2026 Continued focus on higher margins, increased efficiency and to reduce tied-up capital Third quarter: July - September • Net sales amounted to SEK 295 million (277) • Order intake amounted to SEK 220 million (222) • Order backlog increased by 14 percent to SEK 1,571 million (1,377) • Adjusted operating profit (EBITA) amounted to SEK 1 million (3) • Adjusted operating margin was 0.5 percent (1.1) • Profit after tax amounted to SEK -74 million (-5) • Adjusted profit after tax amounted to SEK -4 million (-5) • Earnings per share amounted to SEK -3.23 (-0.23) • Adjusted earnings per share amounted to SEK -0.21 (-0.23) • Operating cash flow amounted to SEK -12 million (3) Interim period: January - September • Net sales amounted to SEK 963 million (924) • Order intake increased by 7 percent to SEK 1,090 million (1,016) • Adjusted operating profit (EBITA) amounted to SEK 14 million (6) • Adjusted operating margin was 1.4 percent (0.7) • Profit after tax amounted to SEK -75 million (-34) • Adjusted profit after tax amounted to SEK 1 million (-10) • Earnings per share amounted to SEK -3.33 (-1.53) • Adjusted earnings per share amounted to SEK 0.01 (-0.46) • Operating cash flow amounted to SEK -42 million (-26) Events during the quarter and after the end of the quarter • Charlotte Mattsson has been appointed as the new CEO. She will take up her position in the first quarter of 2027. • The Group's workforce has been reduced by just over 60 people, corresponding to just over 10 percent. Production capacity is maintained. • TBO-Haglinds has been integrated into RK Teknik and Stora Fasad Entreprenad has been integrated into Balco AB. • Balco has discontinued its local operations in the Netherlands. Balco UK is handling the remaining commitments during a tran- sition period. • During the quarter, the change process resulted in restructuring costs of SEK 9 million and write-downs of SEK 79 million. • The property previously owned by TBO-Haglinds was sold, with possession in the fourth quarter. Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec MSEK 2026 2025 2026 2025 2025/26 2025 Net Sales 294,7 276,8 963,3 923,8 1 334,6 1 295,1 Order intake 220,1 221,8 1 090,5 1 016,2 1 611,4 1 537,1 Order backlog 1 571,3 1 376,7 1 571,3 1 376,7 1 571,3 1 523,3 Adjusted operating profit (EBITA) 1,4 2,9 13,7 6,4 22,6 15,4 Adjusted operating margin (EBITA), % 0,5 1,1 1,4 0,7 1,7 1,2 Net result for the period -74,0 -4,8 -75,4 -34,2 -76,2 -35,0 Adjusted net result after tax -4,4 -4,8 1,5 -9,6 0,2 -10,8 Operating cash flow -11,8 3,3 -41,5 -25,5 83,7 99,7 Earnings per share, SEK before dilution -3,23 -0,23 -3,33 -1,53 -3,35 -1,55 Earnings per share, SEK after dilution -3,23 -0,23 -3,33 -1,53 -3,35 -1,55 Adjusted earnings per share, SEK, before and after dilution -0,21 -0,23 0,01 -0,46 -0,03 -0,50 "Continued focus on higher gross margins, increased efficiency and to reduced tied-up capital." - Johan Dyberg, acting President and CEO
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2 | Balco Group Interim Report 1 January - 30 September 2026 CEO's statement During the third quarter, we continued to implement the measures identified in the Group's strategic review that we initi- ated in the middle of the second quarter. The aim is to strengthen efficiency and create better conditions for long-term profitability growth. The work has included the integration of TBO-Haglinds into RK Teknik and the integration of Stora Fasad Entreprenad into Balco AB. Balco has closed its local operations in the Netherlands and transferred the management of remaining commitments to Balco UK during a transition period. Riikku in Finland has undergone extensive efficiency im- provements. The property previously owned by TBO-Haglinds has been sold, with possession taking place during the fourth quarter. Overall, the Group's workforce has decreased by just over 60 people, corresponding to just over 10 percent. At the same time, we have maintained our production capacity. We are now seeing the first signs that the measures are starting to have an effect. The gross margin has begun to improve, while sales and administrative costs in relation to sales have begun to decrease. We expect the effect of the measures to become clearer during the fourth quarter and beyond. For the period January to September, sales increased to SEK 963 million (SEK 924 million) and the adjusted gross margin increased to 16.0 percent (14.1 percent). Adjusted EBITA increased to SEK 14 million (SEK 6 million), after adjusting for items affecting comparability of SEK 97 million. During the quarter, the change process resulted in restructuring costs of SEK 9 million and write-downs of SEK 79 million. We are continuing to review the strategy and will conduct the customary impairment tests of goodwill during the fourth quarter. The Board of Directors has appointed Charlotte Mattsson as the new CEO. She will take up her position in the first quarter of 2027 and comes from the role of Vice President and General Manager for Northern Europe within the JELD-WEN Group, one of the world's leading manufacturers of doors and windows. I look forward to handing over responsibility to Charlotte in an orderly manner and then continuing to support the company through my work on the Board. We remain confident in our strong order backlog and in order intake, which are at satisfactory levels. At the same time, we are aware that the global situation may mean that it may take longer for orders to be converted into revenue. We expect a gradual improvement in the Group's operational and financial results as the measures we have taken have an impact. The simplified Group structure frees up resources to focus on our prioritized markets and our core business. Johan Dyberg Acting President and CEO
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3 | Balco Group Interim Report 1 January - 30 September 2026 Group development Third quarter: July – September Net sales amounted to SEK 295 million (277). Organic growth was +6 percent, and currency effect was +1 percent. Net sales increased primarily in Norway and the mari- time segment, while decreased in Finland and the UK. Net sales for the renovation segment amounted to SEK 226 million (206) and net sales for the new build segment amounted to SEK 68 million (70). Order intake decreased by 1 percent to SEK 220 million (222). Order intake for the renovation segment decreased to SEK 165 million (188), while order intake for the new build segment increased to SEK 55 million (33). The order backlog increased by 14 percent to SEK 1,571 million (1,377). The order back- log for the renovation segment amounted to SEK 1,109 million (1,107) and the order backlog for the new build segment increased to SEK 462 million (269). Adjusted operating profit (EBITA) amounted to SEK 1 million (3), corresponding to an adjusted operating margin of 0.5 percent (1.1). Items affecting comparability of SEK -88 million (0) were taken in the quarter linked to decided and implemented structural measures in the form of restructuring of the or- ganization. The items affecting comparability include impairment /write-downs of in- tangible assets in the amount of SEK 52 million, property, plant and equipment in the amount of SEK 19 million and current assets in the amount of SEK 7 million. The property, which was previously owned by TBO-Haglinds, has been sold, with pos- session taking place during the fourth quarter. The property is on the Group's balance sheet in the line Assets held for sale. Net financial items amounted to SEK -5 million (-8), of which SEK 0 million (0) relates to interest expenses related to rights of use (leases) and SEK +2 million (0) relates to unrealized currency changes. Interest expenses amounted to SEK -7 million (-7). Profit after tax amounted to SEK -74 million (-5). Adjusted profit after tax amounted to SEK -4 million (-5). Earnings per share amounted to SEK -3.23 (-0.23). Adjusted earnings per share amounted to SEK -0.21 (-0.23). Operating cash flow amounted to SEK -12 million (3). The timing of building permits and the phases of the projects, as well as the timing of inflow and payment of supplier invoices, affect the quarters. Net sales by geographic market, MSEK Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec 2026 2025 2026 2025 2025/26 2025 Sweden 120 121 424 404 607 587 Other Nordics 118 109 359 388 488 516 Other Europe 57 46 180 132 240 192 Total net sales 295 277 963 924 1 335 1 295 Order intake by segment, MSEK Order backlog, MSEK Order intake Q3 2026 220 MSEK
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4 | Balco Group Interim Report 1 January - 30 September 2026 Interim period: January – September Net sales amounted to SEK 963 million (924). Organic growth was +4 percent, and currency effect was 0 percent. Net sales increased in Norway, Sweden and the maritime segment, while decreased in Finland. Net sales for the renovation segment amounted to SEK 729 million (696) and net sales for the new build segment amounted to SEK 234 million (228). Order intake increased by 7 percent to SEK 1,090 million (1,016). Order intake for the renovation segment increased to SEK 850 million (782) and order intake for the ne w build segment increased to SEK 240 million (234). Adjusted operating profit (EBITA) amounted to SEK 14 million (6), corresponding to an adjusted operating margin of 1.4 percent (0.7). Items affecting comparability of SEK -97 million (-31) were taken this year in connection with the departure of the CEO and decided and implemented structural measures in the form of restructuring of the organization. The items affecting comparability include impairment/write-downs of intangible assets in the amount of SEK 52 million, property, plant and equipment in the amount of SEK 19 million and current assets in the amount of SEK 7 million. Net financial items amounted to SEK -9 million (-17), of which SEK -1 million (-1) relates to interest expenses related to rights of use (leases) and SEK +13 million (0) relates to unrealized currency fluctuations. Interest expenses amounted to SEK -21 million (-17). Profit after tax amounted to SEK -75 million (-34). Adjusted profit after tax amounted to SEK 1 million (-10). Earnings per share amounted to SEK -3.33 (-1.53). Adjusted earnings per share amounted to SEK 0.01 (-0.46). Operating cash flow amounted to SEK -42 million (-26). The timing of building permits and the phases of the projects, as well as the timing of inflow and payment of supplier invoices, affect between periods. Net sales by customer category, MSEK Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec 2026 2025 2026 2025 2025/26 2025 Tenant-owner associations 118 154 442 548 679 785 Private landlords 37 9 89 28 104 43 Publicly owned companies 21 9 58 21 68 31 Construction companies 119 104 374 327 484 437 Total net sales 295 277 963 924 1 335 1 295 Net sales, MSEK Adjusted operating profit, MSEK Operating cash flow R12, MSEK
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5 | Balco Group Interim Report 1 January - 30 September 2026 Financial position Interest-bearing net debt including lease liabilities at the end of the period amounted to SEK 446 million (436). Interest-bearing net debt including lease liabilities in relation to adjusted EBITDA amounted to 6.7 times (6.8). A supplementary agreement was signed earlier this year with the Group's principle bank, which entails time-limited easing of the loan terms and restrictions on dividends until the third quarter of 2027. At the end of the period, the Group's equity amounted to SEK 668 million (744). The Group's equity/assets ratio was 43 percent (44). Personnel The number of full-time employees in Balco Group amounted to 515 (555) at the end of September 2026. The decrease is due to restructuring measures implemented dur- ing the past year. The parent company The Parent Company is headquartered in Växjö and conducts operations directly and through Swedish and foreign subsidiaries. The activities of the Parent Company are mainly focused on strategic development, financial management, corporate governance issues, board work and banking relations. Shares, share capital and shareholders As of September 30, 2026, the number of shares in Balco Group AB amounted to 23,021,648 shares, corresponding to a share capi tal of SEK 138,135,310. The company has one (1) series of shares. Each share entitles the owner to one vote at the general meeting. The number of shareholders was 4,207. The three largest shareholders were Herenco AB (26%), Ringvägen Venture AB (18%) and AB Tuna Holdi ng (5%). External interest-bearing net debt in relation to EBITDA Equity/assets ratio 43 % 30-Sept 30-Sept 31-Dec MSEK 2026 2025 2025 Non-current liabilites to credit institutions 464,8 474,2 475,0 Leasing libabilites non-current 40,1 46,7 43,8 Current liabilities to credit institutions 0,2 0,0 0,2 Leasing libabilities current 15,8 17,2 21,1 Cash and cash equivalents -75,4 -102,1 -190,0 Interest-bearing net debt incl leasing debt 445,7 436,0 350,2 Interest-bearing net debt incl leasing/EBITDA (12 months), times 6,7 x 6,8 x 6,0 x Equity/assets ratio % 43,1 43,8 42,5
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6 | Balco Group Interim Report 1 January - 30 September 2026 Development by segment Renovation Third quarter Net sales increased by 10 percent to SEK 226 million (206). The segment accounted for 77 percent (75) of total sales. Order intake decreased by 12 percent to SEK 165 million (188), corresponding to 75 percent (85) of total order intake. Adjusted operating profit (EBITA) amounted to SEK 4 million (2), corresponding to an adjusted operating margin of 1.7 percent (1.2). Interim period Net sales increased by 5 percent to SEK 729 million (696). The segment accounted for 76 percent (75) of total sales. Order intake increased by 9 percent to SEK 850 million (782), corresponding to 78 percent (77) of total order intake. Adjusted operating profit (EBITA) amounted to SEK 13 million (4), corresponding to an adjusted operating margin of 1.7 percent (0.6). The order backlog amounted to SEK 1,109 million (1,107), corresponding to 71 percent (80) of the total order backlog. New build Third quarter Net sales amounted to SEK 68 million (70). The segment accounted for 23 percent (25) of total sales. Order intake increased by 67 percent to SEK 55 million (33), corresponding to 25 percent (15) of total order intake. Adjusted operating profit (EBITA) amounted to SEK -3 million (1), corresponding to an adjusted operating margin of -3.9 percent (1.0). Interim period Net sales amounted to SEK 234 million (228). The segment accounted for 24 percent (25) of total sales. Order intake increased by 3 percent to SEK 240 million (234), corresponding to 22 percent (23) of total order intake. Adjusted operating profit (EBITA) amounted to SEK 0 million (4), corresponding to an adjusted operating margin of 0.1 percent (1.6). The order backlog amounted to SEK 462 million (269), corresponding to 29 percent (20) of the total order backlog. Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec Renovation, MSEK 2026 2025 2026 2025 2025/26 2025 Net Sales 226 206 729 696 1019 986 Adjusted operating profit (EBITA) 4 2 13 4 20 11 Adjusted operating margin (EBITA), % 1,7 1,2 1,7 0,6 2,0 1,1 Order intake 165 188 850 782 1 079 1 011 Order backlog 1 109 1 107 1 109 1 107 1 109 1 059 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec New Build, MSEK 2026 2025 2026 2025 2025/26 2025 Net Sales 68 70 234 228 316 309 Adjusted operating profit (EBITA) -3 1 0 4 2 5 Adjusted operating margin (EBITA), % -3,9 1,0 0,1 1,6 0,6 1,6 Order intake 55 33 240 234 533 526 Order backlog 462 269 462 269 462 464
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7 | Balco Group Interim Report 1 January - 30 September 2026 Operations and segment description Balco Group is a market leader in the balcony industry and offers a range of services, from development and manufacturing to sale and installation of in-house manufactured open and glazed balcony systems. Balco has a unique method, known as the Balco method, for delivering glazed balconies and balcony solutions. The method involves removing existing balconies and replacing them with new, larger glazed balconies with a lifespan of over 90 years, which provides the market's most economical and sus- tainable solution. To offer complete and customized solutions in the balcony industry, Balco Group has several subsidiaries that work together t o offer a complete solution in areas such as the manufacture and delivery of balconies, masonry and tile services, technical solutions and façade services such as renovation, window replacement and façade cleaning. Balco Group strives to meet the customer's needs and requirements by offering a combination of specialized services and expertise. Balco Group's offering contributes to increased quality of life, security and value increase for residents in apartment buildings and provides energy savings of up to 30 percent. The Group takes full responsibility for the project and guides the customer through the entire process from project planning to final inspection and service. Segment - Renovation Segment - New build Brf Muraren in Kinna, Sweden Southwark Park Road in London, UK The segment includes the replacement and expansion of ex- isting balconies, mainly glazed balconies. The main driver is the pent-up need for renovation and the age profile of the properties. The offer also includes façade renovation. The segment includes balconies in the construction of multi - dwelling properties and balcony projects in the maritime mar- ket. Demand is driven by the pace of new housing production. The offering also includes façade work in new construction. Sales development by quarter, MSEK Operating margin per quarter, % Sustainability Sustainability is a prerequisite for long-term profitability for Balco Group. By focusing on sustainability, we can create a strong brand, increase customer trust and improve our competitiveness in the long term. The risk rating according to Sustainalytics' latest survey for Balco Group was 17.5 (17.2), which means that we were among the 5 percent with the lowest risk rating in our industry "Building Products".
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8 | Balco Group Interim Report 1 January - 30 September 2026 Other information Seasonality Balco Group's sales and earnings are partly affected by the timing of orders, seasonal variations and the fact that the gener al meeting season in tenant-owner associations normally falls in the second and fourth quarters. Furthermore, the Group is positive ly affected by months with many working days and lack of time off, as well as negatively by weather factors where winters with significant snowfall mean increased costs. Related party transactions The related parties consist of the Board of Directors, Group Management and the CEO, partly through ownership in Balco and pa rtly through the role of senior executive. The related parties also include the company's largest shareholder, the Hamrin family, which is represented on the Board of Directors by Carl-Mikael Lindholm, and during part of the year also Skandrenting, which was represented on the Board of Directors by Johannes Nyberg. Transactions with related parties are carrried out on a market basis. For further information, see the Annual Report 2025 on pages 79 and 99. Incentive program Balco Group has a long -term incentive program aimed at the company's senior executives and additional key employees, a total of approximately 30 employees. The incentive program comprises a maximum of 230,000 warrants in total, which entitles the holder to subscribe for a maximum of the corresponding number of shares. Balco Group's total cost for the incentive program during the term of the program is expected to amount to approximately SEK 1 million. The program entails a dilution corresponding to approxim ately 1 percent of the company's total number of shares. The senior executives of Balco have acquired 60,000 warrants amounting to a total value of SEK 248,400. The purpose of the incentive programs is to encourage broad share ownership among Balco Group's employees, facilitate recruitment, retain competent employees and increase the motivation to achieve or exceed the company's financial targets. For more information, see the Annual Report 2025 on pages 45, 78 and 113. Risks and uncertainties The Group and the Parent Company are exposed to various types of risks through their operations. The risks can be divided into industry- and market-related risks, business-related risks, financial risks, regulatory risks and sustainability risks. Industry - and market-related risks include, among other things, changes in demand as a result of a weaker economy or other macroeconomic changes, changed prices for raw materials that are central to Balco Group's production, and changes in competition or price pressure. Business -related risks include Balco Group's ability to develop and sell new innovative products and solutions, that the Group is able to attract and retain qualified employees, and that Balco Group's profitability is dependent on the results of the individual projects, i.e. the Group's abil ity to predict, calculate and deliver the projects within set financial frameworks. The financial risk s are summarized under currency risk, financing and liquidity risk, credit risk and interest rate risk. Regulatory risks include, among other things, the impact of political decisions on the business, changes in accounting standards, as well as disputes and legal uncertanties. Sustainability -related risks include, for example, changes in the surrounding world and the company's climate impact. Balco Group's risks and uncertainties are described on pages 31–36, 42, 51, 59, 87–88, 91 and 94 of the Annual Report for 2025. Outlook Balco Group is one of the few complete balcony suppliers on the market that provides customized and innovative balcony solutions on a turnkey contract. Balco Group is the market leader in the Nordic region and has a challenger position in the other markets where the Group operates. The market is fragmented and growing throughout Northern Europe. The value of the balcony market in the count ries where Balco Group is represented is estimated at just over SEK 40 billion. We remain confident in our strong order backlog and in order intake, which are at satisfactory levels. At the same time, we are aware that the global situation may mean that it may take longer for orders to be converted into revenue. We expect a gradual improvement in the Group's operational and financial results as the measures we have taken have an impact. The simplified Group structure frees up resources to focus on our prioritized markets and our core business. Events during the quarter and after the end of the quarter • Charlotte Mattsson has been appointed as the new CEO. She will take up her position in the first quarter of 2027. • The Group's workforce has been reduced by just over 60 people, corresponding to just over 10 percent. Production capacity is maintained. • TBO-Haglinds has been integrated into RK Teknik and Stora Fasad Entreprenad has been integrated into Balco AB. • Balco has discontinued its local operations in the Netherlands. Balco UK is handling the remaining commitments during a transition period. • During the quarter, the change process resulted in restructuring costs of SEK 9 million and write-downs of SEK 79 million. • The property previously owned by TBO-Haglinds was sold, with possession in the fourth quarter.
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9 | Balco Group Interim Report 1 January - 30 September 2026 Financial targets Revenue growth Balco Group´s net sales shall grow by 10 percent annually during a business cycle Profitability Earnings per share to grow by 20 percent per year over a business cycle Capital structure Interest-bearing net debt shall not exceed 2.5 times operating profit before depreciation and amortisation (EBITDA), other than temporarily Dividend policy Balco Group shall distribute 30 –50 percent of profit after tax, taking into consideration the needs of Balco Group's long-term growth and prevailing market conditions The interim report has been subject to a review in accordance with ISRE 2410 by the company's auditors. This information is information that Balco Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, on 26 October 2026 at 13:00 CET. Växjö, 26 October 2026 Johan Dyberg Board member and acting President & CEO Web conference A webcasted conference will be held on October 26, 2026 at 14:00 CET where acting President and CEO Johan Dyberg and CFO Viktor Arvidsson will present the report and answer questions. To follow the webcast and submit written questions, please use this link https://www.finwire.tv/webcast/balcogroup/q3-2026/ To participate via telephone conference and be able to ask questions, call in: SE: +46 8 5052 0017 PIN: 811 7315 5172 # For more information, please contact: Johan Dyberg, acting President and CEO, Tel: +46 73-312 81 78, johan.dyberg@balco.se Viktor Arvidsson, CFO and Head of IR, Tel: +46 70-864 92 23, viktor.arvidsson@balco.se Calendar 2026/2027 Year-end report 2026 ......................... February 8, 2027 Annual Report 2026 ............................ April 5, 2027 Interim Report Jan-Mar 2027 ........... April 26, 2027 Annual General Meeting 2027 ......... 4 May 2027 Interim Report Jan-Jun 2027 ............ 14 July 2027 Interim Report Jan-Sep 2027 ............ 25 October 2027
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10 | Balco Group Interim Report 1 January - 30 September 2026 Auditor's audit report Balco Group AB (publ) Org. nr 556821-2319 Introduction We have conducted a review of the summary financial information (the interim report) for Balco Group AB (publ) as of Sep- tember 30, 2026 and the nine-month period ending on that date. The Board of Directors and the CEO are responsible for preparing and presenting this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. The scope and scope of the review We have conducted our review in accordance with the International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information by the company's elected auditor. A review consists of making requests, primarily to persons responsible for financial and accounting matters, to perform analytical reviews and to undertake other review procedures. A review has a different focus and a significantly smaller scope compared to the focus and scope of an audit under the ISA and generally accepted auditing practices. The review procedures taken during a review do not enable us to obtain such assur- ance that we are aware of all important circumstances that could have been identified if an audit had been performed. The stated conclusion based on a review therefore does not have the certainty that an explicit conclusion based on an audit has. Conclusion Based on our review, no circumstances have come to light that give us reason to believe that the interim report has not, in all material respects, been prepared for the Group in accordance with IAS 34 and the Annual Accounts Act and for the Parent Company in accordance with the Annual Accounts Act. Växjö, 26 October 2026 KPMG AB Michael Johansson Authorized Public Accountant Auditor in charge
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11 | Balco Group Interim Report 1 January - 30 September 2026 Consolidated statement of comprehensive income Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec MSEK 2026 2025 2026 2025 2025/26 2025 Net sales 294,7 276,8 963,3 923,8 1 334,6 1 295,1 Production and project costs -339,4 -234,7 -899,1 -821,8 -1 212,9 -1 135,6 Gross profit -44,6 42,1 64,3 102,0 121,7 159,4 Sales costs -24,6 -21,7 -81,2 -76,9 -110,2 -105,9 Administration costs -18,1 -18,8 -69,4 -64,2 -90,0 -84,8 Other operating income 0,1 0,6 0,6 11,6 1,9 12,9 Other operating expenses 0,0 0,0 0,0 0,0 -0,4 -0,4 Operating profit -87,2 2,2 -85,8 -27,6 -76,9 -18,7 Finance income 2,7 1,0 15,8 4,7 15,8 4,7 Finance costs -7,7 -8,7 -24,3 -21,8 -36,0 -33,5 Result before tax -92,2 -5,5 -94,3 -44,7 -97,1 -47,5 Income tax 18,3 0,7 18,9 10,4 20,9 12,5 Net result for the period -74,0 -4,8 -75,4 -34,2 -76,2 -35,0 Net result attributable to parent company´s shareholders -74,4 -5,4 -76,6 -35,3 -77,0 -35,8 Net result attributable to non-controlling interest 0,4 0,6 1,2 1,1 0,9 0,8 Net profit for the period -74,0 -4,8 -75,4 -34,2 -76,2 -35,0 Other comprehensive income Items that may later be reclassified to the income statement Translation differences when translating foreign operations 4,5 -2,4 10,0 -9,7 5,1 -14,7 Comprehensive income for the period -69,5 -7,1 -65,4 -43,9 -71,1 -49,7 Comprehensive income attributable to parent company´s shareholders -69,8 -7,7 -66,6 -45,0 -72,0 -50,5 Comprehensive income attributable to non-controlling interest 0,4 0,6 1,2 1,1 0,9 0,8 Comprehensive income for the period -69,5 -7,1 -65,4 -43,9 -71,1 -49,7 Earnings per share, SEK, before dilution -3,23 -0,23 -3,33 -1,53 -3,35 -1,55 Earnings per share, SEK, after dilution -3,23 -0,23 -3,33 -1,53 -3,35 -1,55 Average number of shares before dilution, thousands 23 022 23 022 23 022 23 022 23 022 23 022 Average number of shares after dilution, thousands 23 022 23 022 23 022 23 022 23 022 23 022
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12 | Balco Group Interim Report 1 January - 30 September 2026 Consolidated balance sheet in summary 30-Sept 30-Sept 31-Dec MSEK 2026 2025 2025 ASSETS Non-current assets Intangible assets Goodwill 530,2 531,5 527,9 Other intangible assets 233,9 282,1 279,9 Total intangible assets 764,0 813,6 807,7 Tangible assets Right-to-use assets 53,9 62,1 63,0 Property, plant and equipment 165,6 213,6 208,6 Total tangible assets 219,5 275,8 271,6 Financial assets 0,2 0,9 0,5 Deferred tax assets 19,5 9,5 13,9 Total non-current assets 1 003,3 1 099,8 1 093,7 Current assets Inventory 65,0 61,2 60,8 Accounts receivables 179,4 213,3 184,4 Contract assets 177,5 206,4 180,5 Other current receivables 64,9 62,6 45,1 Cash and cash equivalents 35,9 48,1 158,1 Assets held for sale 14,5 0,0 0,0 Total current assets 537,3 591,5 628,9 TOTAL ASSETS 1 540,6 1 691,4 1 722,6 EQUITY AND LIABILITES Equity Share capital 138,1 138,1 138,1 Other capital contributions 450,8 450,8 450,8 Reserves 13,2 8,2 3,2 Retaind earnings, incl. profit for the year 61,7 143,0 140,4 Equity attributable to Parent Company´s shareholders 663,9 740,1 732,5 Non-controlling interest 4,2 4,4 3,7 TOTAL Equity 668,1 744,5 736,1 LIABILITIES Non-current liabilites Liabilities to credit institutions 464,8 474,2 475,0 Leasing liabilities 40,1 46,7 43,8 Other non-current liabilities 1,1 12,6 11,6 Deferred tax liabilities 43,2 65,1 59,0 Total non-current liabilities 549,3 598,5 589,5 Current liabilities Liabilities to credit institutions 0,2 0,0 0,2 Leasing liabilities 15,8 17,2 21,1 Contract liabilites 85,2 82,8 103,1 Accounts payables 113,6 126,1 157,6 Other current liabilities 105,4 122,3 115,0 Liabilities associated with assets classified as held for sale 3,0 0,0 0,0 Total current liabilites 323,2 348,4 396,9 TOTAL EQUITY AND LIABILITIES 1 540,6 1 691,4 1 722,6
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13 | Balco Group Interim Report 1 January - 30 September 2026 Consolidated changes in Shareholders´ Equity MSEK Share Capital Addition al paid-in capital Reserves Retained earnings including comprehensive income for the year Non-controlling interest Total equity Opening balance 1 Jan 2025 138,1 450,8 17,9 181,9 4,2 793,0 Correction of errors from previous years Comprehensive income for the period Profit for the period -35,3 -35,3 Other comprehensive income for the period -9,7 1,1 -8,6 Total comprehensive income for the period -9,7 -35,3 1,1 -43,9 Transactions/acquisitions/disposals in holdings without -3,6 -1,0 -4,5 Transactions with shareholders: Total transactions with Company owners 0,0 -0,0 0,0 0,0 0,0 -0,0 Closing balance 30 Sep 2025 1 3 8 ,1 45 0,8 8 ,2 1 43 ,0 4,4 744,5 Opening balance 1 Jan 2026 138,1 450,8 3,2 140,4 3,7 736,1 Comprehensive income for the period Profit for the period -76,6 1,2 -75,4 Other comprehensive income for the period 10,0 10,0 Total comprehensive income for the period 10,0 -76,6 1,2 -65,4 Transactions/acquisitions/disposals in holdings without -2,1 -0,6 -2,7 Transactions with shareholders: Total transactions with Company owners 0,0 0,0 0,0 -2,1 -0,6 -2,7 Closing balance 30 Sep 2026 1 3 8 ,1 45 0,8 1 3 ,2 6 3 ,8 4,8 6 6 8 ,1
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14 | Balco Group Interim Report 1 January - 30 September 2026 Consolidated cash flow statement in summary Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec MSEK 2026 2025 2026 2025 2025/26 2025 Operating activites Operating profit (EBIT) -87,2 2,2 -85,8 -27,6 -76,9 -18,7 Adjustment for non-cash items 99,6 11,1 116,2 31,8 110,9 26,5 Interest received 0,5 0,9 2,4 3,5 3,6 4,7 Interest paid -7,1 -8,0 -22,7 -19,8 -33,0 -30,1 Income tax paid -4,7 -3,8 -14,5 -15,0 -11,0 -11,5 Cash flow from operating activities before changes in working capital 1,1 2,3 -4,4 -27,0 -6,5 -14,1 Changes in working capital Increase (-)/Decrease (+) in inventories -2,1 -4,2 -3,5 2,8 -3,4 2,8 Increase (-)/Decrease (+) in current assets -2,7 -14,1 -6,0 -96,0 55,3 -34,8 Increase (+)/Decrease (-) in current liabilities -20,1 6,7 -78,0 16,8 -18,7 76,0 Cash flow from operating activities -23,7 -9,3 -91,9 -103,5 26,6 15,0 Cash flow from investing activities Investments in tangible fixed assets -2,8 -0,2 -3,1 -11,0 -4,7 -12,6 Investments in intangible fixed assets -0,9 -0,2 -1,6 -4,6 -1,2 -4,2 Acquisitions of operations 0,0 0,0 0,0 -20,4 -0,2 -20,6 Changes in other non-current assets/liabilities -0,1 0,0 -10,2 -11,6 -10,3 -11,6 Cash flow from investing activities -3,9 -0,5 -15,0 -47,6 -16,5 -49,1 Cashflow from financing activities Changes in bank loans -12,8 50,5 -10,2 112,5 -9,0 113,6 Changes in leasing -5,8 -5,9 -17,4 -16,3 -23,4 -22,4 New warrants issue 0,0 0,0 0,0 0,0 0,0 0,0 Distributed dividend to non-controlling interest -2,0 -0,4 -0,7 -0,4 -0,7 -0,4 Cashflow from financing activities -20,6 44,2 -28,2 95,8 -33,2 90,8 Cash flow for the period -48,2 34,5 -135,1 -55,3 -23,0 56,8 Cash and cash equivalents at beginning of the period 82,2 13,8 158,1 103,1 48,1 103,1 Exchange rate differential cash and cash equivalents 2,0 -0,2 12,9 0,4 10,8 -1,8 Cash and cash equivalents at end of the period 35,9 48,1 35,9 48,1 35,9 158,1
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15 | Balco Group Interim Report 1 January - 30 September 2026 Key ratios Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec MSEK 2026 2025 2026 2025 2025/26 2025 Net sales 294,7 276,8 963,3 923,8 1 334,6 1 295,1 Order intake 220,1 221,8 1 090,5 1 016,2 1 611,4 1 537,1 Order backlog 1 571,3 1 376,7 1 571,3 1 376,7 1 571,3 1 523,3 Gross profit -44,6 42,1 64,3 102,0 121,7 159,4 Adjusted Gross Profit 42,4 42,1 153,9 130,2 210,7 183,1 EBITDA -3,9 13,6 21,2 6,9 41,6 27,4 Adjusted EBITDA 12,6 13,7 46,9 38,1 66,8 58,0 Operating profit (EBITA) -34,1 2,9 -31,2 -24,8 -21,6 -15,2 Adjusted operating profit (EBITA) 1,4 2,9 13,7 6,4 22,6 15,4 Operating profit (EBIT) -87,2 2,2 -85,8 -27,6 -76,9 -18,7 Adjusted operating profit (EBIT) 0,8 2,2 11,6 3,6 19,8 11,9 Gross profit margin, % -15,1 15,2 6,7 11,0 9,1 12,3 Adjusted gross margin, % 14,4 15,2 16,0 14,1 15,8 14,1 EBITDA-margin, % -1,3 4,9 2,2 0,7 3,1 2,1 Adjusted EBITDA-margin, % 4,3 4,9 4,9 4,1 5,0 4,5 Operating profit margin ( EBITA), % -11,6 1,1 -3,2 -2,7 -1,6 -1,2 Adjusted operating profit margin ( EBITA), % 0,5 1,1 1,4 0,7 1,7 1,2 Operating profit margin ( EBIT), % -29,6 0,8 -8,9 -3,0 -5,8 -1,4 Adjusted operating profit margin ( EBIT), % 0,3 0,8 1,2 0,4 1,5 0,9 Operating cash flow -11,8 3,3 -41,5 -25,5 83,7 99,7 Operating cash conversion, % -94,0 24,2 -88,5 -66,9 125,2 171,9 Capital employed, R12 1 667,6 1 179,6 1 667,6 1 179,6 1 667,6 1 180,3 Capital employed, excl goodwill, R12 1 138,7 656,6 1 138,7 656,6 1 138,7 654,3 Equity 663,9 740,1 663,9 740,1 663,9 732,5 Interest-bearing net debt incl leasing debt 445,7 436,0 445,7 436,0 445,7 350,2 Interest-bearing net debt excl leasing debt 389,7 372,1 389,7 372,1 389,7 285,3 Interest-bearing net debt incl leasing/Adjusted EBITDA 12 months, times 6,7 6,8 6,7 6,8 6,7 6,0 Interest-bearing net debt excll leasing/Adjusted EBITDA 12 months, times 8,7 8,6 8,7 8,6 8,7 7,9 Return on capital employed, % (12 months) 1,2 1,6 1,2 1,6 1,2 1,0 Return on capital employed, excl goodwill, % (12 months) 1,7 2,9 1,7 2,9 1,7 1,8 Return on invested capital, % (12 months) -11,5 -4,9 -11,5 -4,9 -11,5 -4,8 Equity/assets ratio, % 43,1 43,8 43,1 43,8 43,1 42,5 Number of full-time employees on the closing date 515 555 515 555 515 513 Average number of shares before dilution, thousands 23 022 23 022 23 022 23 022 23 022 23 022 Average number of shares after dilution, thousands 23 022 23 022 23 022 23 022 23 022 23 022 Equity per share, SEK 29 32 29 32 29 32 Earnings per share, SEK before dilution -3,23 -0,23 -3,33 -1,53 -3,35 -1,55 Earnings per share, SEK after dilution -3,23 -0,23 -3,33 -1,53 -3,35 -1,55 Adjusted earnings per share, SEK, berfore and after dilution -0,21 -0,23 0,01 -0,46 -0,03 -0,50
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16 | Balco Group Interim Report 1 January - 30 September 2026 Parent Company, income statement in summary Parent Company, balance sheet in summary Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec MSEK 2026 2025 2026 2025 2025/26 2025 Net Sales 8,4 6,8 25,0 20,1 31,7 26,8 Sales costs -0,6 0,1 -2,7 0,1 -3,3 -0,6 Administrative expenses* -112,7 -6,4 -132,7 -19,5 -139,2 -26,1 Operating profit -105,0 0,4 -110,5 0,6 -107,5 0,8 Interest income and similar profit/loss items 3,9 4,3 12,5 12,7 15,3 15,5 Interest expenses and similar profit/loss items -7,5 -7,9 -23,9 -18,7 -32,7 -27,4 Dividend / result from group companies 1,6 1,4 2,9 1,4 -14,5 -16,0 Profit/loss after financial items -107,0 -1,7 -119,0 -4,0 -139,4 -27,1 Appropriations -8,3 0,0 -10,4 0,0 -21,2 -10,8 Tax 1,7 0,3 4,6 0,8 8,9 5,1 Net profit/loss for the period -113,7 -1,4 -124,8 -3,2 -151,6 -32,8 In the Parent Company there are no items that are reported as other comprehensive incom, so total comprehensive income is consistent with the profit for the period. * Administrative expenses include a MSEK 107 impairment of shares in group companies 30-Sept 30-Sept 31-Dec MSEK 2026 2025 2025 ASSETS Non-current assets Financial assets Shares in group companies 978,0 1 077,1 1 071,7 Other non-current assets 9,0 4,9 8,4 Total non-current assets 987,0 1 082,0 1 080,1 Current assets Receivables from group companies 223,1 273,3 234,2 Other current receivables 28,7 19,3 14,7 Cash and cash equivalents 34,1 44,6 154,6 Total current asstes 286,0 337,3 403,4 TOTAL ASSETS 1 272,9 1 419,2 1 483,5 EQUITY AND LIABILITIES Equity Restricted equity 138,1 138,1 138,1 Non-restricted equity 541,5 696,1 666,4 Total Equity 679,6 834,3 804,5 LIABILITIES Non-current liabilities Liabilities to credit institutions 465,0 475,0 475,0 Other non-current liabilities 4,8 15,0 14,9 Total non-current liabilities 469,8 490,0 489,9 Current liabilities Liabilities to group companies 100,1 68,3 165,5 Other current liabilities 23,4 26,7 23,6 Total current liabilities 123,4 95,0 189,1 TOTAL EQUITY AND LIABILITIES 1 272,9 1 419,2 1 483,5
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17 | Balco Group Interim Report 1 January - 30 September 2026 Notes Note 1 Accounting principles This consolidated interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with RFR 2 and Chapter 9, Interim Reports, of the Swedish Annual Accounts Act. For both the Parent Company and the Group, accounting principles and calcula- tion bases have been applied in the same manner as for the 2025 Annual Report, which was prepared in accordance with the International Financial Reporting Standards as adopted by the EU and interpretations thereof. The interim information on pages 1-9 forms an integral part of this financial report. Note 2 Business segments Balco reports according to the following segments: Renovation: includes replacement and expansion of existing balconies as well as installation of new balconies on apartment buildings without balconies. The segment’s main market driver is the age profile of the residential property portfolio. New build: includes installation of balconies in conjunction with the construction of apartment buildings and balcony solutions in the maritime area. The segment is mainly driven by the rate of new residential construction. Jul-Sep MSEK 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Net sales - External revenue 226,4 206,4 68,3 70,4 - - - - 294,7 276,8 Net sales - Internal revenue - - - - 8,4 6,8 -8,4 -6,8 - - Total sales 226,4 206,4 68,3 70,4 8,4 6,8 -8,4 -6,8 294,7 276,8 Operating profit (EBIT) -84,5 1,7 -3,1 0,6 0,3 -0,2 - - -87,2 2,2 Deprec/write-down included with 81,4 10,3 2,0 1,2 - - - - 83,4 11,5 of which amortization/impairment 53,0 0,7 0,1 0,1 - - - - 53,1 0,7 Other items affecting comparison 35,2 - 0,4 - - 0,0 - - 35,6 0,0 Adjusted operating profit (EBITA) 3,8 2,4 -2,7 0,7 0,3 -0,2 - - 1,4 2,9 Adjusted operating margin 1,7% 1,2% -3,9% 1,0% - - 0,5% 1,1% Operating profit (EBIT) -84,5 1,7 -3,1 0,6 0,3 -0,2 - - -87,2 2,2 Finance income - - - - 2,7 1,0 - - 2,7 1,0 Finance cost - - - - -7,6 -8,7 - - -7,6 -8,7 Profit before tax -84,5 1,7 -3,1 0,6 -4,6 -7,9 - - -92,2 -5,5 Jul-Sep MSEK 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Net sales - External revenue 729,1 696,0 234,2 227,8 - - - - 963,3 923,8 Net sales - Internal revenue - - - - 25,0 20,1 -25,0 -20,1 - - Total sales 729,1 696,0 234,2 227,8 25,0 20,1 -25,0 -20,1 963,3 923,8 Operating profit (EBIT) -79,5 -23,8 -0,6 -2,4 -5,7 -1,3 - - -85,8 -27,6 Deprec/write-down included with 101,1 30,0 5,7 4,5 - - - - 106,9 34,5 of which amortization/impairment 54,4 2,6 0,2 0,2 - - - - 54,5 2,8 Other items affecting comparison 37,7 25,1 0,9 5,9 6,3 0,3 - - 44,9 31,2 Adjusted operating profit (EBITA) 12,7 3,9 0,3 3,6 0,6 -1,0 - - 13,7 6,4 Adjusted operating margin 1,7% 0,6% 0,1% 1,6% - - 1,4% 0,7% Operating profit (EBIT) -79,5 -23,8 -0,6 -2,4 -5,7 -1,3 - - -85,8 -27,6 Finance income - - - - 15,8 4,7 - - 15,8 4,7 Finance cost - - - - -24,3 -21,8 - - -24,3 -21,8 Profit before tax -79,5 -23,8 -0,6 -2,4 -14,2 -18,4 - - -94,3 -44,7 Renovation New Build Group-wide Eliminations Total New Build Group-wide Eliminations TotalRenovation
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18 | Balco Group Interim Report 1 January - 30 September 2026 Note 3 Reconciliation against financial statements in accordance with IFRS Balco’s financial statements include alternative performance measures, which complement the measures that are defined or specified in appli-cable rules for financial reporting. Alternative performance measures are presented since, as in their context, they provide clearer or more in-depth information than the measures defined in applicable rules for financial reporting. The alternative performance measures are derived from the Company’s consolidated financial reporting and are not measured in accordance with IFRS. 30-Sept 30-Sept 31-Dec MSEK 2026 2025 2025 Interest-bearing net debt incl leasing debt Non-current interest-bearing liabilities 505,0 520,9 518,9 Current interest-bearing liabilities 16,1 17,2 21,3 Cash and cash equivalents -75,4 -102,1 -190,0 Interest-bearing net debt incl leasing debt 445,7 436,0 350,2 Adjusted EBITDA (R12) 66,8 64,1 58,0 Interest-bearing net debt/EBITDA (R12), times 6,7 x 6,8 x 6,0 x Return on capital employed Equity 663,9 740,1 732,5 Interest-bearing net debt 445,7 436,0 350,2 Average capital employed 1 256,9 1 187,4 1 113,0 Adjusted operating profit (EBIT), (R12) 19,8 19,0 11,9 Return on capital employed, % 1,6 1,6 1,1 Equity/assets ratio Equity attributable to owners of the parent company 663,9 740,1 732,5 Total assets 1 540,6 1 691,4 1 722,6 Equity/assets ratio, % 43,1 43,8 42,5
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19 | Balco Group Interim Report 1 January - 30 September 2026 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec MSEK 2026 2025 2026 2025 2025/26 2025 Adjusted operating profit (EBIT) Operating profit (EBIT) -87,2 2,2 -85,8 -27,6 -76,9 -18,7 Items affecting comparison 88,0 0,0 97,3 30,9 96,7 30,3 Acquisition costs 0,0 0,0 0,0 0,3 0,0 0,3 Adjusted operating profit (EBIT) 0,8 2,2 11,6 3,6 19,8 11,9 Operating profit (EBITA) Operating profit (EBIT) -87,2 2,2 -85,8 -27,6 -76,9 -18,7 Amortization and impairment 53,1 0,7 54,5 2,8 55,3 3,5 Operating profit (EBITA) -34,1 2,9 -31,2 -24,8 -21,6 -15,2 Adjusted operating profit (EBITA) Adjusted operating profit (EBIT) 0,8 2,2 11,6 3,6 19,8 11,9 Amortization and impairment* 0,7 0,7 2,1 2,8 2,8 3,5 Adjusted operating profit (EBITA) 1,4 2,9 13,7 6,4 22,6 15,4 Adjusted net result Net result -74,0 -4,8 -75,4 -34,2 -76,2 -35,0 Items affecting comparison after tax 69,5 0,0 76,9 24,6 76,4 24,2 Adjusted net result -4,4 -4,8 1,5 -9,6 0,2 -10,8 EBITDA Operating profit (EBIT) -87,2 2,2 -85,8 -27,6 -76,9 -18,7 Depreciation and amortization 83,4 11,5 106,9 34,5 118,6 46,1 EBITDA -3,9 13,6 21,2 6,9 41,6 27,4 Adjusted EBITDA Adjusted operating profit (EBIT) 0,8 2,2 11,6 3,6 19,8 11,9 Depreciation and amortization* 11,8 11,5 35,4 34,5 47,0 46,1 Adjusted EBITDA 12,6 13,7 46,9 38,1 66,8 58,0 Investments, excluding expansions investments Investments in intangible fixed assets -2,8 -0,2 -3,1 -11,0 -4,7 -12,6 Investments in tangible fixed assets -0,9 -0,2 -1,6 -4,6 -1,2 -4,2 of which expansion investments 3,7 0,9 4,3 11,6 5,0 12,3 Investments, excluding expansions investments -0,0 0,5 -0,5 -4,1 -1,0 -4,5 Operating cash flow Adjusted EBITDA 12,6 13,7 46,9 38,1 66,8 58,0 Changes in working capital -24,3 -10,8 -87,9 -59,5 17,8 46,2 Investments, excluding expansions investments -0,1 0,5 -0,5 -4,1 -1,0 -4,5 Operating cash flow -11,8 3,3 -41,5 -25,5 83,7 99,7 Net Sales excluding acquisitions Net Sales 294,7 276,8 963,3 923,8 1 334,6 1 295,1 Acquired net sales 0,0 0,0 0,0 -24,6 0,0 -24,6 Net Sales excluding acquisitions 294,7 276,8 963,3 899,2 1 334,6 1 270,5 Adjusted earnings per share Net result attributable to parent company´s shareholders -74,4 -5,4 -76,6 -35,3 -77,0 -35,8 Items affecting comparison after tax 69,5 0,0 76,9 24,6 76,4 24,2 Adjusted earnings per share -0,21 -0,23 0,01 -0,46 -0,03 -0,50 * Impairment of assets is included in Items affecting comparison and hence included in Adjusted operating profit (EBIT)
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20 | Balco Group Interim Report 1 January - 30 September 2026 Alternative performance measures This interim report contains references to several performance measures. Some of these measures are defined in IFRS, while ot hers are alternative measures and are not reported in accordance with applicable financial reporting frameworks or other legislation. The measures are used by Balco to help both investors and management to analyze its operations. The measures used in this interim report are described below, together with definitions and the reason for their use. Alternative KPIs Definition Purpose Return on equity Profit for the period divided by average equity attributable to the parent company's share- holders. The average is calculated as the aver- age of the opening balance and the closing balance for each period. The measure shows the return generated on the shareholders' capital invested in the company. Return on capital employed Adjusted operating profit (EBITA) divided by average capital employed. The average is cal- culated as the average of the opening balance and the closing balance for each period. The measure shows the return generated on capi- tal employed and is used by Balco to track the profitability of the business as the measure refers to capital efficiency. Return on capital employed ex- cluding goodwill Adjusted operating profit (EBITA) divided by average capital employed excluding goodwill. The average is calculated as the average of the opening balance and the closing balance for each period. Balco believes that return on capital employed ex- cluding goodwill, together with return on employ- ment, shows an overall picture of Balco's capital efficiency. Gross profit Net sales less production and project costs. Shows efficiency in Balco's operations and to- gether with EBIT provides an overall picture of the ongoing profit generation and cost picture. Gross margin Gross profit as a percentage of net sales. Key figures are used for the analysis of efficiency and value creation. EBITDA Profit before interest, tax, depreciation and amortization. Balco believes that EBITDA is a useful measure to show the profit generated in operating activities and a good measure of cash flow from operating activities. Interest-bearing net debt in rela- tion to adjusted EBITDA Interest-bearing external net debt as a share of adjusted EBITDA. Balco believes that this measure is helpful in demonstrating financial risk and that it is a useful measure for monitoring the company's level of debt. Adjusted EBITDA EBITDA adjusted for items affecting compara- bility. For a reconciliation of adjusted EBITDA with profit for the period. Balco believes that adjusted EBITDA is a useful measure to show the profit generated in operating activities adjusted for items affecting comparabil- ity and primarily uses adjusted EBITDA when cal- culating the company's operating cash flow and cash conversion. Adjusted EBITDA margin Adjusted EBITDA as a share of net sales. Balco believes that the adjusted EBITDA margin is a useful measure to show the profit generated in operating activities. Adjusted operating margin (EBIT) Adjusted operating profit (EBIT) as a share of net sales. Balco believes that adjusted operating margin (EBIT) is a useful measure to show the profit gen- erated in operating activities after adjusting for non-recurring items. Adjusted operating profit (EBIT) Operating profit (EBIT) adjusted for items af- fecting comparability. For a reconciliation of adjusted operating profit (EBIT) with profit for the period. Balco therefore considers adjusted operating profit (EBIT) to be a useful measure to show the result generated in operating activities and pri- marily uses the measure to calculate return on capital employed (see above). Adjusted operating margin (EBITA) Adjusted operating profit (EBITA) as a share of net sales. Balco believes that adjusted operating margin (EBITA) is a useful measure to show the profit gen- erated in operating activities after adjusting for non-recurring items.
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21 | Balco Group Interim Report 1 January - 30 September 2026 Alternative KPIs Definition Purpose Adjusted operating profit (EBITA) Operating profit (EBITA) adjusted for items af- fecting comparability. For a reconciliation of adjusted operating profit (EBITA) with profit for the period. Balco therefore considers adjusted operating profit (EBITA) to be a useful measure to show the profit generated in operating activities and pri- marily uses the measure to calculate return on capital employed (see above). Items affecting comparability Items affecting comparability are significant items that are recognized separately due to their size or frequency, such as restructuring charges, impairments, divestments and acqui- sition costs. Balco believes that adjustment for items affecting comparability improves the possibility of compar- ison over time by excluding items with irregulari- ties in frequency or size. This is to provide a more accurate picture of the underlying operating profit. Operating cash conversion Operating cash flow divided by adjusted EBITDA. Balco considers this to be a good measure for comparing cash flow with operating profit. Operating cash flow Adjusted EBITDA increased/decreased with changes in working capital and decreased with investments, excluding expansion invest- ments. Balco uses operating cash flow to track the devel- opment of the business. Organic growth Net sales excluding acquired growth in the current period divided by net sales in the cor- responding period last year. Organic growth excludes the effects of changes in the Group's structure, which enables a comparison of net sales over time. Interest-bearing net debt Total long- and short-term interest-bearing li- abilities reduced by cash and cash equivalents and interest-bearing receivables. Balco believes that net debt is a useful measure to show the Group's total debt financing. Working capital Current assets, excluding cash and cash equiv- alents and current tax assets, reduced by in- terest-free current liabilities, excluding current tax liabilities. This measure shows how much working capital is tied up in the business and can be put in relation to turnover to understand how effectively tied up working capital is used. Operating margin (EBIT) Operating profit (EBIT) as a share of net sales. Balco believes that operating margin (EBIT) to- gether with sales growth and adjusted working capital is a useful measure to track value creation in the business. Operating profit (EBIT) Earnings before interest and tax. Balco believes that operating profit (EBIT) is a use- ful metric to show the profit generated in operat- ing activities. Operating margin (EBITA) Operating profit (EBITA) as a share of net sales. Balco believes that operating margin (EBITA) to- gether with sales growth and adjusted working capital is a useful measure to track value creation in the business. Operating profit (EBITA) Operating profit (EBIT), excluding depreciation and amortization of acquired intangible non - current assets. Balco's growth strategy includes acquisitions of companies. In order to better illustrate the devel- opment of the underlying business, management has chosen to follow EBITA, which is an expression of operating profit before depreciation and amor- tization of acquired intangible assets. Equity ratio Equity divided by total assets. Balco believes that the equity ratio is a useful measure for the company's survival. Capital employed Equity increased with interest -bearing net debt. Capital employed is used by Balco as a measure of the Group's overall capital efficiency. Capital employed excluding goodwill Capital employed minus goodwill. Capital employed, excluding goodwill, is used to- gether with capital employed by Balco as a meas- ure of the company's capital efficiency.
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Balco Group in brief Balco Group is a market leader in the balcony industry, where we develop, manufacture, sell and take responsibility for the installation of our own bespoke open and glazed balcony systems. The Group's customized products contribute to increased quality of life, security and increased value for the residents of apartment buildings. In addition, Balco Group's standardized glazing systems generates reduced energy consumption. 515 employees Balco Group was established in 1987 and is a group consisting of producing and selling companies. The Group is the market leader in the Nordic region and operates in a number of markets in Northern Europe. The head office is located in Växjö. A general and dis- tinctive feature of the companies in the Group is a de- centralised and efficient sales process that controls the entire value chain – from sales work to installed balco- nies. 7 markets SEK 1,335 million net sales R12 35,000 sqm total production area