Slides
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Krister Blomgren, CEO 7th January 2026 SEB NORDIC SEMINAR
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2 ~400 Employees 1990 engcon founded 16 Listed on Nasdaq ENGCON – CHANGE THE WORLD OF DIGGING 1.6 Bn Net sales in 2024 SEB Nordic Seminar 2026 Poland (Niepruszewo) Sweden (Strömsund) 2022 Markets Nordics 38% Europe 42% Americas 12% Asia-Oceania 8% Net Sales split per region, 2024 49% Market share
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Change the world of digging Advanced hydraulic and mechanic attachments Tools engcon’s proprietary control and safety systems Control & safety systems 360° rotation +/- 45° tilt Tiltrotators Efficient tool changes without leaving the cab Quick couplers Full-range product suite VISION WHATHOW Superior value proposition ~98% of global digging1 ~2% of global digging ~92% penetration in Sweden – sector transformation under way Productivity Efficiency Flexibility Sustainability (Focusing on safety and environmental impact) SEB Nordic Seminar 2026 3
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ENGCON GAINS MARKET SHARE 2019–2024, +5 P .P . Core market shares 2019-2024, Volume, % Notes: 1) Differences may be subject to rounding errors, 2) Includes Kinshofer and local tiltrotator players Sources: Management information, Interviews, Strategy& analysis 4 44% 44% 45% 45% 47% 49% 20% 21% 21% 22% 22% 20% 19% 19% 18% 18% 20% 20% 12% 10% 11% 9% 8% 6% 6% 6% 5% 5% 2019 2020 2021 2022 4% 2023 5% 2024 Other2) SMP Parts Steelwrist Rototilt engcon Delta market share ’19-’241) +5 p.p. 0 p.p. +1 p.p. -5 p.p. Prepared for engcon by Strategy& SEB Nordic Seminar 2026
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Forecast FORECASTED STRONG GROWTH OF 20% (CAGR) Tiltrotator market development MSEK, % CAGR Notes: 1) Including engcon, Steelwrist, Rototilt and SMP Parts Sources: Expert interviews, Power systems research, Off-highway research, Euroconstruct, Industry association statistics, National statistics, engcon Information, Strategy& analysis 5 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20302019 1,757 1,624 1,941 2,601 2,516 2,095 2,636 3,088 3,600 4,279 5,107 6,132 +20% Prepared for engcon by Strategy& SEB Nordic Seminar 2026
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Tipping point CONTINUED STRONG PENETRATION EXPECTED ON ENGCON’S KEY MARKETS Sources: Expert interviews, Industry associations, Strategy& analysis 6 Penetration by country % of addressable excavators sold with tiltrotator Time Prepared for engcon by Strategy& • Significant opportunities remain in markets where engcon has a strong presence. • Germany and France expected to reach tipping point within the next five-year period. Netherland expected to reach maturity. • Penetration growth in North America will generate substantial volume growth due to large excavation markets. • Japan projects rapid adoption growth driven by governmental subsidies. • ~93% of excavator fleet in core markets is left to be penetrated in 2030. Key comments SEB Nordic Seminar 2026
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X% SEB Nordic Seminar 2026 7 14% Net sales organic growth FINANCIAL TARGETS YTD 2025 (JAN-SEP) EBIT margin 40% Return on capital employed 52% Equity-to-asset ratio Growth Profitability Capital efficiency Capital structure Exceed the growth in existing market through organic growth. Have an EBIT margin in excess of 20 per cent, measured over a business cycle. Continue to achieve an industry-leading capital efficiency. ROCE to exceed 40 per cent, measured over a business cycle. Maintain a strong capital structure supporting further expansive organic growth and dividends to share-holders. Equity-to-asset ratio to be above 35 per cent. 18% EBIT margin
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New housing supply is below historical levels • High interest rates and constructions costs in recent year. • Dropping building permits and Increased risk for developers. Gradual recovery starting 2026 • lower rates, stabilizing costs and strong underlying demand NORDICS - SALES DRIVERS AND MARKET TRENDS Accelerating infrastructure projects Aging excavator fleet Low investment 2022 to 2025 has created replacement need in the excavator fleet. • High interest rates and construction costs led contractors to delay equipment purchases. • Delivery issues around pandemics caused a gap in new sales. • Many machines now exceed recommended hours, warranty, and service agreements. Backlog in housing demand Significant investment need across the region driven by aging assets, climate goals, and security requirements • Aging road networks, water and sewage systems, and energy grids. • Major investments are needed in the rail system. • Infrastructure investments to meet climate goals and increase climate-resilience. SEB Nordic Seminar 2026 8
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SEB Nordic Seminar 2026 9 STRONG POSITION TO MEET GLOBAL INDUSTRY SHIFT Long-term key market drivers for resource-efficient digging Productivity demand and cost savings Urbanisation Construction equipment sector transformation Sustainability requirements Labour shortage
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For more information visit www.engcongroup.com