Interim report
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Interim report Q3 2026 JANUARY – SEPTEMBER 2026 WALL&DECÒ: ASTRAL ECHOES
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2 EMBELLENCE GROUP JULY – SEPTEMBER 2026 BORÅSTAPETER: HARALD Third quarter 2026 • Net sales amounted to MSEK 178 (174), up 3%. Organic growth amounted to 2% and exchange rate effects had an impact of 1%. • The gross margin amounted to 62.4% (60.6). • Operating profit (EBITA) amounted to MSEK 24 (24). • The EBITA margin amounted to 13.2% (13.6). • Net profit for the period amounted to MSEK 16 (13) and earnings per share before and after dilution to SEK 0.69 (0.55). • Operating cash flow amounted to MSEK 39 (32). SIGNIFICANT EVENTS DURING THE QUARTER • New Managing Director of Wall&decò appointed. SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER • No significant events to report. INTERIM REPORT Q3 / QUARTERLY OVERVIEW MSEK Jul–Sep 2026 Jul–Sep 2025 Change Jan–Sep 2026 Jan–Sep 2025 Change R12 Full-year 2025 Group Net sales 178 174 3% 561 569 –2% 756 765 Gross profit 111 105 6% 351 350 0% 471 471 Gross margin, % 62.4% 60.6% 1.8 pp 62.5% 61.5% 1.0 pp 62.4% 61.9% EBITA 24 24 0% 74 82 –9% 100 108 EBITA margin, % 13.2% 13.6% –0.4 pp 13.3% 14.4% –1.1 pp 13.3% 14.1% Net profit/loss for the period 16 13 25% 48 52 –7% 65 69 Operating cash flow 39 32 21% 74 55 33% 116 98 Net debt/EBITDA R12 0.4 0.7 0.4 0.7 0.4 0.5 Earnings per share before dilution (SEK) 0.69 0.55 2.05 2.21 2.77 2.93 Earnings per share after dilution (SEK) 0.69 0.55 2.05 2.21 2.77 2.93
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3 EMBELLENCE GROUP JULY – SEPTEMBER 2026 Growth and focus on channel diversification A STRONG ORGANISATION IN LINE WITH OUR STRATEGIC PLAN When I took office as CEO eighteen months ago, a key element of my assignment was to develop the organisa - tion in order to better support our strategic plan and our long-term ambitions. For many years, the organisation had done great work on building up strong brands, but for the next stage of our development we have strength - ened the organisations in each brand, developed the Group-wide team and added new commercial expertise in our strategic areas of growth. We have made signifi - cant progress, and we now have an organisation that is better equipped to pursue our strategy of profitable growth. These changes have entailed short-term restruc - turing costs that were charged to our operating income, but both the Board of Directors and I are convinced that they were necessary to strengthen our long-term compet - itiveness and profitability. As part of this development, we also resolved on a leadership change at Wall&decò during the quarter and appointed Christian Benini as the new Managing Direc - tor. I am delighted to have Christian back at the helm of the brand he created. He and I share a clear vision of how Wall&decò can grow over the next few years, and Christian combines entrepreneurial creativity and strong skills in design and product innovation with a deep understanding of how to achieve commercial success in the wallpaper segment. In the meantime, Lars-Erik Henriksson has decided to end his employment at the Group, and I am happy to inform you that we have decided to appoint Henrik Net sales for the third quarter amounted to MSEK 178 (174), up 3% compared with the year-earlier quarter. Currency-adjusted organic growth for the quarter amounted to 2%, and currency effects had a positive effect of 1 percentage point on sales performance. Four of our five interior design brands grew during the quarter. Growth was driven primarily by direct-to-con - sumer sales – one of our strategic focus areas – which continued its strong performance and offset continued weakness in traditional physical retail. Pappelina in par - ticular distinguished itself and more than doubled its sales in the direct-to-consumer (DTC) channel. Only Wall&decò posted a decline in sales. The gross margin strengthened during the quarter, amounting to 62.4% (60.6), driven by a positive channel mix with a greater share of DTC sales, a positive product mix and improvements to efficiency in manufacturing. The increased share of DTC sales has strengthened the gross margin but at the same time has meant higher mar - keting and logistics costs. Overall, the impact on profit - ability has been a positive one. EBITA for the quarter was MSEK 24 (24), correspond - ing to an operating margin of 13.2% (13.6). Earnings also include restructuring costs for the replacement of the Managing Director of Wall&decò. Operating cash flow for the quarter amounted to MSEK 39 (32), up MSEK 7 compared with the year-ear - lier period. Working capital decreased by MSEK 8 (8) during the quarter as a result of reduced inventory levels. Our financial position strengthened further, with a net debt to EBITDA at a multiple of 0.4 (0.7). Andersson, the current Managing Director of Pappelina, as his successor, which will mean a smooth transition in leadership for Boråstapeter, our largest brand. Henrik, who has successfully steered Pappelina towards strong growth, will take over as Managing Director of Boråsta - peter during the first half of 2027 . Henrik has been a driving force behind Pappelina’s fine performance and has built a strong organisation, and I am confident that we will find a successor who can continue to drive Pap - pelina’s positive growth forward. I would like to thank Lars-Erik for his contributions to Boråstapeter’s develop - ment during his time as Managing Director, and I know that he will ensure a smooth transition to Henrik. SALES GROWTH DRIVEN BY DIRECT-TO-CONSUMER Boråstapeter increased its sales by 2% to MSEK 63 (62). Sales in traditional physical retail in Sweden remained weak, but sales through digital channels and internation - ally offset this. All significant international markets per - formed well. DTC sales also gained momentum during the quarter, supported by the launch of Boråstapeter’s new online sales platform and a strengthened organisation. Cole & Son achieved sales of MSEK 31 (30) in the third quarter. The efforts around restructuring our sales channels, which began early in the year, are now in their final stage and we believe that the temporary negative impact on sales will become more limited going forward. Our focus is now on continuing to develop our brand-building as well as a more diversified channel strategy. International sales performed positively, driven INTERIM REPORT Q3 / CEO STATEMENT
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4 EMBELLENCE GROUP JULY – SEPTEMBER 2026 the year, we worked on a relaunch featuring a new prod - uct line, which will be rolled out during the fourth quarter at one of our major customers. Together with the positive performance in DTC sales, this has created good condi - tions for growth in the next quarter. Sales to external customers through Borås Tapetfabrik totalled MSEK 23 (22) for the quarter. Customers – both traditional and digitally focused – contributed to this growth. After a prolonged period of double-digit annual growth, we anticipate a slightly lower growth rate going forward. In accordance with the Embellence Group’s strategy, the primary focus for Borås Tapetfabrik will be on improving product innovation, production processes and services for the Group’s own brands. Borås Tapet - fabrik’s sales to external customers remain important to the Group. Going forward, however, we will place even greater emphasis on improving efficiency and our ability to support the growth of our own brands. FOCUS ON OUR STRATEGIC GROWTH AREAS DTC sales are continuing to perform well, driven by strong international growth, particularly in the US and Europe. With a strengthened organisation and new online sales platforms in place, we are well equipped to scale up and accelerate performance in this channel although there is still much to be done. We are also continuing our efforts to expand our prod- uct and service offerings in the hospitality channel to better meet the needs of larger and more complex projects. We took further steps in this direction during the quarter, for example, with the development of Cole & Son’s offering and organisation. Alongside increased commercial col - laboration among our brands, this will gradually strengthen our position in the hospitality channel. As we have communicated earlier, our brands have his- torically held very strong positions in their respective local domestic markets, but we are seeing great potential for growth in our key international export markets. Going for- ward, these efforts will focus on better utilising Embellence by growth in the US – our focus market – while perfor - mance in the UK and Europe was more cautious. We are also seeing positive developments in the hospitality channel as a result of the initiatives that were launched during the first half of the year. In the middle of the sec - ond quarter, Yelena Ford took office as the new Manag - ing Director, and during the quarter she has also strengthened the rest of the organisation with new exper - tise to lead and develop our DTC sales. A great deal remains to be done for Cole & Son in this channel, but with the strengthened organisation in place and the Group’s support capacity, we have created a solid plat - form for long-term growth. Sales for Wall&decò in the third quarter amounted to MSEK 17 (20). Sales performance remained weak and did not meet our expectations. In light of this, we decided to implement a change in leadership during the quarter and appointed Christian Benini, the founder of Wall& - decò, as Managing Director. Under Christian’s leader - ship, the team at Wall&decò has actively expanded its collaboration with the Group, with a clear focus on strengthening commercial execution and turning around the sales trend. Pappelina posted yet another strong quarter with sales of MSEK 15 (1 1). This growth was driven primarily by DTC sales, with this trend – already a strong one in recent quarters – accelerating further during the third quarter. All major markets performed well, and it is grati - fying to see that the drivers behind this positive trend in DTC sales also promoted an increase in sales to tradi - tional physical retailers. At the same time, sales through online retailers declined in pace with a larger share of consumers choosing to purchase Pappelina’s products directly from our own platform. Artscape’s sales in the third quarter amounted to MSEK 29 (28). Sales in the US – our core market – per - formed positively, mainly through the company’s own online sales platform. At the same time, export sales were negatively impacted by increased trade barriers between the US and its neighbouring countries. During INTERIM REPORT Q3 / CEO STATEMENT COLE & SON: ANGLED PLANES Group’s expertise and the customer relationships of the various brands, and prioritising the markets where we see the greatest potential, strengthening our commercial part - nerships and developing our network of retailers, distribu - tors, agents, architects, and interior designers. Perfor - mance in international sales was positive during the quarter, but burdened in part by a slump in Artscape’s exports to Canada and Mexico. At the same time, the US continues to grow in importance and is currently an increasingly vital growth market for several of our brands. I look forward to the final quarter of this year and the coming year with confidence. In 2026, we dedicated time and resources into strengthening our leadership and our organisation, restructuring our sales channels and building a stronger foundation – including new digital platforms – to support continued growth in the direct-to- consumer segment. This process of transformation is ongoing, but with our strong brands, a strengthened organisation and an intensified commercial focus, I am convinced that we will enter the coming year with a solid platform for creating long-term, profitable growth. Borås, November 2026 Johan Andgren , CEO Embellence Group
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5 EMBELLENCE GROUP JULY – SEPTEMBER 2026 Group performance CONSOLIDATED SALES Net sales for the quarter amounted to MSEK 178 (174), up 3% compared with the year-earlier quarter. Organic sales growth during the quarter amounted to 2%. Exchange rate effects had a positive impact of 1%. Net sales for the period, the first nine months of the year, amounted to MSEK 561 (569), down 2% com - pared with the year-earlier period. The organic sales trend amounted to 0% and exchange rate effects had an impact of –2%. CONSOLIDATED EARNINGS EBITA for the quarter was MSEK 24 (24), corresponding to an operating margin of 13.2% (13.6). The sales mix, with a higher share of DTC sales, strengthened the gross margin to 62.4% (60.6) Operating expenses were impacted by non-recurring costs for replacing the Managing Director of Wall&decò. Net profit for the quarter amounted to MSEK 16 (13), resulting in earnings per share before and after dilution of SEK 0.69 (0.55). EBITA for the quarter was MSEK 74 (82), correspond- ing to an operating margin of 13.3% (14.4). Net profit for the period amounted to MSEK 48 (52). Earnings per share before and after dilution amounted to SEK 2.05 (2.21). NET FINANCIAL ITEMS Net financial items for the quarter were MSEK 1 (–3). Net interest items amounted to MSEK –1 (–2). Remea - surement of financial items in foreign currency was MSEK 2 (0). Net financial items for the period amounted to MSEK –1 (–3). CASH FLOW Cash flow from operating activities for the quarter amounted to MSEK 39 (32). Changes in working capital amounted to MSEK 8 (8). Inventory decreased by MSEK 14. The decrease was attributable to seasonal variations and raw material inventories returning to normal levels. Cash flow from investing activities amounted to MSEK 1 (–4). Cash flow from financing activities for the quarter amounted to MSEK –27 (–30). Cash flow for the quarter amounted to MSEK 12 (–2). Cash flow from operating activities for the period amounted to MSEK 74 (55). Cash flow of MSEK –14 (–29) from changes in working capital and MSEK 9 (–6) in Other contributed to this positive performance during the period. FINANCIAL POSITION At the end of the quarter, the Group’s total assets amounted to MSEK 806 (784). The equity ratio amounted to 69% (65) and cash and cash equivalents at the end of the quarter were MSEK 56 (37). The Group’s net debt amounted to MSEK 53 (99) at the end of the quarter. At the end of the quarter, the ratio of net debt to EBITDA (R12) was 0.4 (0.7). Cash flow from operating activities contrib- uted to this strengthened financial position. INTERIM REPORT Q3 / GROUP PERFORMANCE PAPPELINA : MIMI OCEAN BLUE 0 200 50 15 0 100 250 MSEK Net sales R 12 Q2 26 Q4 24 Q2 25 Q1 25 Q3 25 Q4 25 Q1 26 Q3 26 0 800 400 200 600 1,000 NET SALES (MSEK) 0 24 16 8 40 32 0 8 12 4 20 16 %MSEK EBITA EBITA-margin Q2 26 Q4 24 Q2 25 Q1 25 Q3 25 Q4 25 Q1 26 Q3 26 EBITA (MSEK) AND EBITA MARGIN (%)
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6 EMBELLENCE GROUP JULY – SEPTEMBER 2026 Consolidated net sales during the quarter amounted to MSEK 178, up 3% compared with the year-earlier quarter. All brands except Wall&decò posted growth during the quarter. Pappelina’s strong performance continued in the third quarter, with sales growth of 29%. Following the previously implemented measures, sales in Cole & Son stabilised and posted growth for the quarter. Meanwhile, Borås Tapetfabrik continued to develop positively. BORÅSTAPETER Boråstapeter’s sales for the quarter amounted to MSEK 63, up 2% compared with the year-earlier quarter. Traditional retail remains a challenging channel, but increased sales to online retailers and DTC during the quarter offset this. COLE & SON Cole & Son’s sales for the quarter totalled MSEK 31, up 3% compared with the year-earlier quarter. The impacts from the restructuring of sales channels decreased during the quarter, and the sales level has stabilised. WALL&DECÒ Wall&decò’s sales amounted to MSEK 17, down 13% compared to the year-earlier quarter. During the quarter, Christian Benini was appointed as the new Managing Director of the brand. The Group is continuing to actively support and work alongside the local team in order to reverse the trend in sales. PAPPELINA Pappelina’s sales for the quarter amounted to MSEK 15, up 29% compared with the year-earlier quarter. This positive trend is continuing, with increased DTC sales and a performance in the US that remains strong. ARTSCAPE Artscape’s sales for the quarter amounted to MSEK 29, up 4% compared with the year-earlier quarter. DTC sales continued to perform well. INTERIM REPORT Q3 / OPERATIONAL PERFORMANCE NET SALES MSEK Jul–Sep 2026 Jul–Sep 2025 Change Jan–Sep 2026 Jan–Sep 2025 Change R12 Full-year 2025 Boråstapeter 63 62 2% 207 208 0% 286 287 Cole & Son 31 30 3% 93 104 –10% 123 134 Wall&decò 17 20 –13% 58 66 –13% 78 87 Pappelina 15 11 29% 41 34 22% 51 44 Artscape 29 28 4% 81 86 –7% 107 113 Borås Tapetfabrik 23 22 3% 81 72 13% 110 101 EMBELLENCE GROUP 178 174 3% 561 569 –2% 756 765 BORÅS TAPETFABRIK Performance in Borås Tapetfabrik’s sales to external customers remained positive and totalled MSEK 23, up 3% compared with the year-earlier quarter. Performance in the quarter was driven by existing customers in both digital and traditional printing. Operational performance GROUP ARTSCAPE: METROPOLIS
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7 EMBELLENCE GROUP JULY – SEPTEMBER 2026 INTERIM REPORT Q3 / OTHER Other Group ORGANISATION The number of FTEs on 30 September 2026 was 228 (225). RELATED-PARTY TRANSACTIONS No related-party transactions took place. RISKS AND UNCERTAINTIES Embellence Group works continuously to identify and manage the risks associated with the Group’s operations. The company has a well-functioning risk-management process in place whereby risks are consolidated, reported and monitored by Group management. For a complete description of the risks impacting the company, refer to the 2025 Annual Report. SEASONAL VARIATIONS Some seasonal variations arise, with the first and fourth quarters normally tending to be slightly stronger. ACCOUNTING POLICIES This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. For the Parent Com- pany, recommendation RFR 2 Financial Reporting for Legal Entities of the Swedish Financial Reporting Board was applied to the preparation of this interim report. Accounting policies and the basis of calculations are the same as the policies applied in the company’s most recent annual report. The carrying amount is a good approxima- tion of fair value for financial assets and liabilities. New standards and interpretations that have come into effect after 31 December 2025 have not had a significant impact on the Group’s financial statements for the current or future periods, nor on future transactions. IASB has issued a new standard, IFRS 18, which replaces IAS 1 and is applicable for financial years beginning on 1 January 2027 . The standard aims to improve comparability and transparency in financial reporting, primarily through new requirements for the presentation of the income statement and the introduc - tion of certain mandatory subtotals. The Company is still evaluating the impact of the transition to IFRS 18. For 2026, the cash flow statement has been changed within the framework of the currently applicable IAS 7 so that foreign exchange effects on working capital are included in changes in working capital rather than in other items. In addition, the Group has changed the clas - sification of interest received and interest paid in the cash flow statement. Interest received is classified as cash flow from investing activities and interest paid as cash flow from financing activities. The change has been imple - mented to provide a more relevant and faithful presenta - tion of the Group’s cash flows and to better reflect the economic substance of the cash flows. The comparative figures have been restated, resulting in cash flow from operating activities increasing by MSEK 7 for the full year 2025, while cash flow from investing activities increased by MSEK 1 and cash flow from financing activities decreased by MSEK 8. SIGNIFICANT EVENTS DURING THE QUARTER New Managing Director of Wall&decò appointed. SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER No significant events to report. AUDIT This report has been reviewed by auditors. WALL&DECÒ: GALLERY MEDIATEM Parent Company The Parent Company’s net sales amounted to MSEK 6 (4) in the third quarter. Earnings after tax totalled MSEK –3 (–4).
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8 EMBELLENCE GROUP JULY – SEPTEMBER 2026 Signatures and assurance The undersigned assure that the interim report provides a true and fair view of the Parent Company and the Group’s operations, financial position and earnings and describes the material risks and uncertainties faced by the Parent Company and the companies included in the Group. BORÅS, 3 NOVEMBER 2026 MAGNUS WELANDER Chairman JOHAN ANDGREN CEO KARIN DENNFORD MARIA VEERASAMY HENRIK NYQVIST CHRISTINA STÅHL INTERIM REPORT Q3 / SIGNATURES
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9 EMBELLENCE GROUP JULY – SEPTEMBER 2026 Condensed consolidated income statement MSEK Jul–Sep 2026 Jul–Sep 2025 Jan–Sep 2026 Jan–Sep 2025 Full-year 2025 Net sales 178 174 561 569 765 Cost of goods sold –67 –68 –210 –219 –293 Gross profit 111 105 351 350 471 Selling and administrative expenses –92 –86 –289 –282 –383 Other operating income 1 1 3 5 6 Other operating expenses — — –2 –3 –4 Operating profit 20 19 63 69 91 Net financial items 1 –3 –1 –3 –4 Profit before tax 21 17 61 66 87 Tax –4 –4 –13 –14 –18 Net profit for the period 16 13 48 52 69 Earnings per share for the period before dilution (SEK) 0.69 0.55 2.05 2.21 2.93 Earnings per share for the period after dilution (SEK) 0.69 0.55 2.05 2.21 2.93 Condensed statement of other comprehensive income Profit for the period 16 13 48 52 69 Translation differences 11 –6 30 –53 –64 Comprehensive income for the period 27 7 78 –1 5 INTERIM REPORT Q3 / FINANCIAL INFORMATION BORÅSTAPETER : HAPPY HOLLYHOCKS GRAND
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10 EMBELLENCE GROUP JULY – SEPTEMBER 2026 Condensed consolidated balance sheet MSEK 30 Sep 2026 30 Sep 2025 31 Dec 2025 Assets Intangible non-current assets 316 320 311 Tangible non-current assets 93 83 87 Right-of-use assets 47 51 50 Deferred tax assets 9 7 4 Financial non-current assets 3 3 3 Total non-current assets 468 464 455 Inventories 147 144 140 Accounts receivable 97 108 95 Current tax assets 7 5 4 Other receivables 8 6 11 Prepaid expenses and accrued income 24 20 18 Cash and cash equivalents 56 37 38 Total current assets 339 320 307 Total assets 806 784 762 INTERIM REPORT Q3 / FINANCIAL INFORMATION MSEK 30 Sep 2026 30 Sep 2025 31 Dec 2025 Equity and liabilities Share capital 59 59 59 Other contributed capital 111 111 111 Reserves 27 7 –3 Retained earnings, including net profit for the year 359 329 346 Equity attributable to Parent Company shareholders 556 506 513 Provisions for pensions 5 6 5 Deferred tax liabilities 20 16 20 Other non-current interest-bearing liabilities 30 42 39 Lease liabilities 36 41 39 Total non-current liabilities 91 105 104 Other current interest-bearing liabilities 12 12 12 Bank overdraft facility 15 25 1 Lease liabilities 16 16 15 Accounts payable 43 49 50 Other current liabilities 28 25 22 Accrued expenses and deferred income 46 46 45 Total current liabilities 159 173 145 Total liabilities 250 278 248 Total equity and liabilities 806 784 762
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11 EMBELLENCE GROUP JULY – SEPTEMBER 2026 Condensed consolidated cash flow statement MSEK Jul–Sep 2026 Jul–Sep 2025 Jan–Sep 2026 Jan–Sep 2025 Full-year 2025 OPERATING ACTIVITIES Operating profit 20 19 63 69 91 Adjustments for non-cash items Depreciation and amortisation 11 11 31 32 43 Other 5 –2 9 –6 –9 Cash flow from changes in working capital 8 8 –14 –29 –13 Cash flow from operating activities before tax 43 36 88 67 113 Tax paid –5 –4 –15 –11 –15 Cash flow from operating activities 39 32 74 55 98 INVESTING ACTIVITIES Investments in non-current assets — –4 –14 –13 –22 Interest received 1 — 1 — 1 Cash flow from investing activities 1 –4 –13 –13 –21 FINANCING ACTIVITIES Change in bank overdraft facilities –19 25 14 –24 –48 Repayment of lease liabilities –4 –4 –10 –11 –15 New borrowing — — — 131 131 Repayment of loans –3 –49 –9 –104 –107 Dividend — — –35 –29 –29 Interest paid –2 –2 –5 –6 –8 Cash flow from financing activities –27 –30 –46 –44 –77 Cash flow for the period 12 –2 15 –1 1 Cash and cash equivalents at beginning of period 42 39 38 41 41 Exchange rate differences in cash and cash equivalents 2 — 3 –3 –4 Cash and cash equivalents at end of period 56 37 56 37 38 INTERIM REPORT Q3 / FINANCIAL INFORMATION ARTSCAPE : SUNSHINE
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12 EMBELLENCE GROUP JULY – SEPTEMBER 2026 Condensed consolidated statement of changes in equity MSEK 30 Sep 2026 Opening balance 1 Jan 2026 513 Dividend –35 Net profit for the period 48 Other comprehensive income 30 Closing balance 30 Sep 2026 556 MSEK 30 Sep 2025 Opening balance 1 Jan 2025 538 Dividend –29 Net profit for the period 52 Other comprehensive income –54 Closing balance 30 Sep 2025 506 INTERIM REPORT Q3 / FINANCIAL INFORMATION WALL&DECÒ: MOSE
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13 EMBELLENCE GROUP JULY – SEPTEMBER 2026 Condensed Parent Company income statement MSEK Jul–Sep 2026 Jul–Sep 2025 Jan–Sep 2026 Jan–Sep 2025 Full-year 2025 Net sales 6 4 18 12 21 Administrative expenses –7 –6 –29 –22 –32 Operating profit –2 –2 –11 –11 –12 Net financial items –2 –3 42 –2 –3 Profit/loss after financial items –4 –5 32 –13 –15 Group contributions — — — — 85 Other appropriations — — — — –18 Profit/loss before tax –4 –5 32 –13 52 Tax 1 1 4 3 –11 Net profit/loss for the period –3 –4 36 –10 42 INTERIM REPORT Q3 / FINANCIAL INFORMATION
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14 EMBELLENCE GROUP JULY – SEPTEMBER 2026 Condensed Parent Company balance sheet MSEK 30 Sep 2026 30 Sep 2025 31 Dec 2025 Assets Intangible non-current assets 1 — — Tangible non-current assets 1 — — Deferred tax assets 4 3 1 Financial non-current assets 618 618 618 Total non-current assets 623 621 619 Current tax assets 6 5 — Other receivables — — — Prepaid expenses and accrued income 2 2 2 Cash and cash equivalents — — — Total current assets 8 8 3 Total assets 631 629 621 MSEK 30 Sep 2026 30 Sep 2025 31 Dec 2025 Equity and liabilities Share capital 59 59 59 Statutory reserve 10 10 10 Share premium reserve 129 129 129 Retained earnings, including net profit for the year 185 133 185 Equity attributable to Parent Company shareholders 383 331 383 Untaxed reserves 43 25 43 Provisions for pensions 2 2 2 Other non-current interest-bearing liabilities 30 42 39 Total non-current liabilities 32 44 41 Other current interest-bearing liabilities 12 12 12 Bank overdraft facility 15 25 1 Accounts payable 2 1 1 Liabilities to Group companies 140 186 131 Other current liabilities 1 1 5 Accrued expenses and deferred income 5 3 5 Total current liabilities 174 229 155 Total liabilities 206 273 196 Total equity and liabilities 631 629 621 INTERIM REPORT Q3 / FINANCIAL INFORMATION
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15 EMBELLENCE GROUP JULY – SEPTEMBER 2026 Notes NOTE 1 Earnings per share MSEK Jul–Sep 2026 Jul–Sep 2025 Jan–Sep 2026 Jan–Sep 2025 Full-year 2025 Net profit for the period (SEK) Earnings per share before dilution 0.69 0.55 2.05 2.21 2.93 Earnings per share after dilution 0.69 0.55 2.05 2.21 2.93 Performance measures used in the calculation of earnings per share before and after dilution (MSEK) Net profit for the period 16 13 48 52 69 Profit above is attributable to Parent Company shareholders in its entirety Weighted average number of shares before and after dilution Before dilution Weighted average number of ordinary shares for calculation of earnings per share before dilution 23,538,721 23,538,721 23,538,721 23,538,721 23,538,721 Warrants Adjustment for calculation of earnings per share after dilution attributable to warrants — — — — — After dilution Weighted average number of ordinary shares and potential ordinary shares used as denominator for calculation of earnings per share after dilution 23,538,721 23,538,721 23,538,721 23,538,721 23,538,721 INTERIM REPORT Q3 / FINANCIAL INFORMATION
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16 EMBELLENCE GROUP JULY – SEPTEMBER 2026 Notes INTERIM REPORT Q3 / FINANCIAL INFORMATION NOTE 2 Indebtedness MSEK 30 Sep 2026 30 Sep 2025 31 Dec 2025 Lease liabilities 52 56 54 Bank overdraft facility 15 25 1 Other interest-bearing receivables and liabilities 42 54 51 Gross debt 109 136 106 Cash and cash equivalents –56 –37 –38 Net debt 53 99 68 EBITDA (R12) 126 136 134 Net debt/EBITDA (R12) 0.4 0.7 0.5 Equity ratio 69% 65% 67% Quota value per share (SEK) 2.5 2.5 2.5
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17 EMBELLENCE GROUP JULY – SEPTEMBER 2026 INTERIM REPORT Q3 / OTHER INFORMATION Quarterly overview GROUP MSEK Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Net sales 202 202 193 174 195 201 181 178 Gross profit 123 126 120 105 121 127 113 111 Gross margin, % 60.7% 62.0% 61.9% 60.6% 61.8% 62.8% 62.3% 62.4% EBITA 28 32 26 24 26 28 23 24 EBITA margin, % 13.9% 16.0% 13.5% 13.6% 13.2% 14.0% 12.6% 13.2% NET SALES PER BRAND AND EXTERNAL MANUFACTURING MSEK Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Boråstapeter 72 79 66 62 79 83 61 63 Cole & Son 36 39 34 30 30 31 30 31 Wall&decò 24 23 23 20 20 21 19 17 Pappelina 10 11 11 11 10 13 14 15 Artscape 36 25 34 28 27 25 27 29 Borås Tapetfabrik 24 24 26 22 29 29 30 23 Total 202 202 193 174 195 201 181 178 NET SALES BY LARGEST MARKETS MSEK Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Sweden 73 80 65 61 76 78 57 60 US 48 39 48 39 46 42 46 50 UK 19 21 17 17 16 20 12 18 Rest of World 62 63 63 57 57 61 66 51 Total 202 202 193 174 195 201 181 178
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18 EMBELLENCE GROUP JULY – SEPTEMBER 2026 Definitions NUMBER OF EMPLOYEES Total number of employees included on Embellence Group’s payroll at the end of the period. GROSS MARGIN Gross profit divided by net sales. GROSS PROFIT Net sales less cost of goods sold. EBITA (Earnings before interest, taxes and amortisation). Operating profit/loss before amortisation of intangible assets. EBITA MARGIN EBITA divided by net sales. EBITDA (Earnings before interest, taxes, depreciation and amor - tisation). Operating profit/loss before depreciation, amortisation and impairment. NET DEBT The sum of non-current interest-bearing liabilities, non-current lease liabilities, current interest-bearing lia - bilities, current lease liabilities, liabilities and receivables against Group companies and bank overdraft facilities minus cash and cash equivalents. NET DEBT/EBITDA Net debt divided by EBITDA, rolling 12 months. NET SALES – ORGANIC GROWTH Change in net sales after adjustments for net sales that have arisen from acquired or divested operations, in constant currencies. EARNINGS PER SHARE IN SEK Profit after tax divided by the average number of outstanding shares during the period. EARNINGS PER SHARE IN SEK AFTER DILUTION Earnings after tax divided by the average number of shares outstanding during the period plus the number of shares that would have been issued as an effect of the ongoing incentive programmes. EQUITY RATIO Equity attributable to Parent Company shareholders as a percentage of total assets. INTERIM REPORT Q3 / OTHER INFORMATION COLE & SON: INLAY
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PUBLICATION This information is information that Embellence Group AB (publ) 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 3 November 2026 at 8:00 a.m. CET. Karin Lidén, CFO Tel: +46(0)33-236400 E-mail: ir@embellencegroup.com FINANCIAL CALENDAR Q4 2026 – 24 February 2027 Q1 2027 – 11 May 2027 Annual General Meeting – 13 May 2027 ABOUT EMBELLENCE GROUP AB Embellence Group, founded in 1905, is a leading European company in interior decoration with a focus on premium brands in the wallpaper seg - ment, complemented by other colour and pattern- driven interior decoration such as textiles and rugs. Our products are sold in more than 100 mar - kets around the world. CONTACT Embellence Group AB (publ) Ryssnäsgatan 8 SE-504 64 Borås, Sweden Tel: +46(0)33-236400 E-mail: info@embellencegroup.com CERTIFIED ADVISER Svensk Kapitalmarknadsgranskning AB Fähusgatan 5 603 72 Norrköping, Sweden PAPPELINA: MIMI BLACK