Interim report
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Strong organic growth and significantly improved profitability Ependion AB Interim Report January–September 2026 Investing in a secure and connected world 1EPENDION Q3 2026
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Strong organic growth and significantly improved profitability Third quarter • Order intake increased by 12 percent to 565 MSEK (505); adjusted for currency effects, the increase was 11 percent. • Net sales increased by 22 percent to 664 MSEK (544); adjusted for currency effects, the increase was 21 percent. • EBITA increased to 95.0 MSEK (66.5). • The EBITA margin strengthened to 14.3 percent (12.2). • Profit after tax increased to 56.9 MSEK (40.4). • Earnings per share improved to SEK 1.77 (1.26). • Free cash flow increased to 60.1 MSEK (29.9). Nine months • Order intake increased by 26 percent to 2,039 MSEK (1,614); adjusted for currency effects and acquisitions, the increase was 19 percent. • Net sales increased by 18 percent to 1,943 MSEK (1,649); adjusted for currency effects and acquisitions, the increase was 11 percent. • EBITA increased to 254.2 MSEK (184.3). • The EBITA margin strengthened to 13.1 percent (11.2). • Profit after tax increased to 142.9 MSEK (102.7). • Earnings per share improved to SEK 4.44 (3.35). • Free cash flow increased to 91.0 MSEK (80.0). • Operating profit measure changed from EBIT to EBITA. 2EPENDION Q3 2026
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“Ependion continued to develop positively during the third quarter of 2026 despite continued uncertainty in the external environment. The improvement was broad-based and encom- passed order intake, sales and profitability in both business entities. Particularly encouraging was the strong organic sales growth, which contributed to record-high EBITA. The Group’s order intake increased by 12 percent to 565 MSEK during the quarter. For the Westermo business entity, order intake grew by 12 percent to 343 MSEK, primarily driven by continued strong development in the important energy segment, where several markets and product areas showed good order growth. Order intake in the rail segment was weak during the period, consistent with the seasonal pattern observed in the third quarter in recent years. For the Beijer Electronics business entity, order intake increased by 11 percent to 223 MSEK, driven by increased demand in the marine seg- ment and manufacturing industry. At the end of the period, the Group’s order backlog amounted to 1,240 MSEK. The strong order intake during the first half of the year resulted in high delivery volumes in the quarter. Sales increased organically by 22 percent to 664 MSEK, with broad-based growth across both geographies and focus segments. For the Westermo business entity, sales increased by 30 percent to 434 MSEK, while sales for Beijer Electronics grew by 10 percent to 230 MSEK. The strong sales performance, combined with healthy gross margins and continued cost restraint, contributed to an increase in the Group’s EBITA to 95 MSEK for the period, a new record level. The EBITA margin increased to 14.3 percent. The positive earnings performance demonstrates the inherent operating leverage in the business as volumes increase. Westermo’s EBITA rose by as much as 61 percent to a record 81 MSEK, corresponding to an EBITA margin of 18.7 percent. Beijer Electronics’ EBITA increased to 31 MSEK, with an EBITA margin of 13.3 percent, marking the third consecutive quarter of margin improvement for the business entity. Currency effects were limited, with a positive impact of approximately one percentage point on both order intake and sales, while EBITA profit was positively affected by 3 MSEK. Free cash flow doubled to 60 MSEK, despite elevated inventory levels, high accounts receivable and investments in increased production capacity for Westermo. Inventory levels continued to be adversely affected by the increasingly strained situation in the component market, where uncertainty regarding future developments has increased. Both business entities are working intensively to secure access to critical components and, to the extent possible, offset cost increases through price adjustments. During the quarter, sustainability efforts focused on the environmental impact of products, including a more systematic approach to carbon footprints, as well as preparations for the EU’s new packaging regulation. In addition, Westermo and Beijer Electronics launched a global training program on occu- pational health and safety risks, and two young employees from Beijer Electronics participated in the final of the UN’s Young SDG Innovators sustainability program. COMMENTS FROM THE CEO, JENNY SJÖDAHL Earnings performance demonstrates the operating leverage from higher volumes “Ependion’s sales increased organically by 22 percent, with broad-based growth across both geographies and focus segments.” Jenny Sjödahl, President and CEO 3EPENDION Q3 2026
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Ependion’s focus going forward remains on profitable growth by realizing the potential of recent years’ investments in new technology and new markets. Welotec, which has been part of Westermo since its acquisition in June 2025, continued its strong performance and contributed to strengthening the Group’s position in the rapidly growing energy sector. The work to continuously identify and evaluate potential complementary acquisitions is continuing, as is market development in the defence segment. In summary, we saw continued positive development during the period despite a turbulent external environment. With strong sales and earnings performance, we are gradually moving closer to our financial targets. As at previous reporting dates, our assessment is that geopolitical uncertainty will persist, with potential short-term effects on our business. Through focused investments and clear strategies, the Group is well positioned to benefit from the underlying growth in our main segments, both in the short and medium term. Following three strong quarters, we are confident about the remainder of the year and our ability to deliver profitable growth for the full year 2026.” The Group in the third quarter The Group’s order intake increased by 12 percent to 565 MSEK (505) in the third quarter of 2026. Adjusted for currency effects, order intake increased by 11 percent. Order intake increased in both business entities. The order backlog amounted to 1,240 MSEK (1,052) at the end of the period. The Group’s net sales increased by 22 percent to 664 MSEK (544). Adjusted for currency effects, net sales increased by 21 percent. The book- to-bill ratio amounted to 0.85. The Group’s EBITDA increased to 146.1 MSEK (110.8). Depreciation and amortization excluding excess values amounted to 51.2 MSEK (44.2). EBITA improved to 95.0 MSEK (66.5), corresponding to an EBITA margin of 14.3 percent (12.2). EBITA was positively affected by currency effects of 3.1 MSEK. EBIT increased to 86.5 MSEK (63.0). Total development expenditure amounted to 67.4 MSEK (70.1), corresponding to 10.2 percent (12.9) of Group sales. Net financial items amounted to -10.9 MSEK (-7.5). Profit before tax increased to 75.6 MSEK (55.5). Profit after estimated tax increased to 56.9 MSEK (40.4). Earnings per share after estimated tax increased to SEK 1.77 (1.26). The Group, nine months The Group’s order intake increased by 26 percent to 2,039 MSEK (1,614) during the first nine months of 2026. Adjusted for currency effects and acquisitions, order intake increased by 19 percent. Order intake increased in both business entities. The Group’s net sales increased by 18 percent to 1,943 MSEK (1,649). Adjusted for currency effects and acquisitions, net sales increased by 11 percent. The book-to-bill ratio amounted to 1.05. The Group’s EBITDA increased to 408.3 MSEK (316.3). Depreciation and amortization excluding excess values increased to 154.1 MSEK (132.0). EBITA improved to 254.2 MSEK (184.3), corresponding to an EBITA margin of 13.1 percent (11.2). EBIT increased to 229.6 MSEK (173.7). Total development expenditure amounted to 220.7 MSEK (223.5), corresponding to 11.4 percent (13.6) of Group sales. Net financial items amounted to -36.1 MSEK (-28.3). Profit before tax increased to 193.5 MSEK (145.4). Profit after estimated tax increased to 142.9 MSEK (102.7). Earnings per share after esti- mated tax increased to SEK 4.44 (3.35). Business entity net sales and EBITA Sales, MSEK Quarter 3 EBITA, MSEK Quarter 3 EBITA MARGIN, % Quarter 3 Sales, MSEK 9 months EBITA, MSEK 9 months EBITA MARGIN, % 9 months 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Westermo 434.7 334.4 81.4 50.6 18.7 15.1 1,273.9 1,009.4 214.8 160.6 16.9 15.9 Beijer Electronics 229.9 209.9 30.6 26.3 13.3 12.5 672.6 643.3 83.2 61.8 12.4 9.6 Intra-group sales -1.0 -0.7 – – – – -3.6 -3.3 – – – – Group adjustments and parent company – – -17.0 -10.4 – – – – -43.8 -38.1 – – Ependion Group 663.6 543.6 95.0 66.5 14.3 12.2 1,942.9 1,649.4 254.2 184.3 13.1 11.2 “The Group’s EBITA increased to 95 MSEK for the period, a new record level” Jenny Sjödahl, President and CEO 4EPENDION Q3 2026
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0 100 200 300 400 500 600 700 800 0 100 200 300 400 500 600 700 800 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 527,516 482,756 456,345 572,268 550,634 558,359 505,076 639,283 778,189 695,052 565,451 2217,210 2002,239 1944,639 2038,885 2062,002 2137,605 2186,336 2253,351 2480,907 2617,600 2677,975 Lorem ipsum 0 100 200 300 400 500 600 700 800 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 0 100 200 300 400 500 600 700 800 !"#$#"%&' !"()*"#*( !"($&"'#$ !"%!+" #%) !"%$!"()% !"%+!" '&! !"$#%" '!! !"$$&" '** !"$&("!)+ !"$$*"%!% !"$)#"+&$ 0 20 40 60 80 100 0 100 200 300 400 500 600 700 800 0 3 6 9 12 15 0 100 200 300 400 500 600 700 800 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 0 20 40 60 80 100 0 3 6 9 12 15 78,176 63,802 54,597 69,292 52,691 65,131 66,524 66,715 74,827 84,433 94,955 13,3 12,5 11,5 11,8 10,9 11,1 11,4 11,2 12,0 12,2 12,7 streckad linje tillhöger i datan 13,1 10,8 11,1 12,0 9,7 11,6 12,2 11,5 12,5 12,4 14,3 Group order intake MSEK Rolling four quarters MSEK Quarter MSEK Rolling four quarters MSEK Quarter Group net sales 1 2 3 4 2024 2025 2026 1 2 3 4 1 2 3 4 1 2 3 4 2024 2025 2026 1 2 3 4 1 2 3 4 Group EBITA MSEK Quarter % The bars and left-hand scale indicate quarterly EBITA. The solid curve and right-hand scale show rolling four quarter EBITA margin, the dashed curve and right-hand scale show quarterly EBITA margin. 1 2 3 4 2024 2025 2026 1 2 3 4 1 2 3 4 The bars and left-hand scale indicate quarterly order intake. The curve and right-hand scale show rolling four quarter order intake. The bars and left-hand scale indicate quarterly net sales. The curve and right-hand scale show rolling four quarter net sales. Group Quarterly Overview 2024 2025 2026 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Order Intake 527,516 482,756 456,345 572,268 550,634 558,359 505,076 639,283 778,189 695,052 565,451 Change % -14.5 -30.8 -11.2 19.7 4.4 15.7 10.7 11.7 41.3 24.5 12.0 of which Organic % -14.8 -30.7 -8.7 19.6 4.5 16.7 3.2 3.7 31.6 14.6 11.2 of which Acquisition % 1.2 – – – – 4.9 12.2 14.9 19.4 11.2 – of which Currency effects % -0.9 -0.1 -2.5 0.1 -0.1 -5.9 -4.7 -6.9 -9.7 -1.3 0.8 Net sales 598,521 588,355 493,033 578,217 545,056 560,756 543,586 582,355 597,309 681,978 663,595 Change % -4.0 -7.8 -20.4 -2.0 -8.9 -4.7 10.3 0.7 9.6 21.6 22.1 of which Organic % -3.1 -7.4 -18.5 -2.1 -8.9 -6.8 0.4 -2.3 0.3 10.5 21.3 of which Acquisition % 0.5 – – – – 6.8 14.7 9.5 16.2 12.4 – of which Currency effects % -1.4 -0.4 -1.9 0.1 – -4.7 -4.8 -6.5 -6.9 -1.3 0.8 EBITA 78,176 63,802 54,597 69,292 52,691 65,131 66,524 66,715 74,827 84,433 94,955 EBITA % 13.1 10.8 11.1 12.0 9.7 11.6 12.2 11.5 12.5 12.4 14.3 5EPENDION Q3 2026
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For Westermo, the third quarter was one of the best in the business entity’s history, with EBITA reaching a record level. Order intake increased by 12 percent to 343 MSEK, with very strong demand in the energy segment driving the increase, while order bookings in the train segment, which is subject to greater fluctuations over time, were subdued during the quarter. Westermo reinforced its position in the railway industry at the important InnoTrans railway trade fair in September, where the business entity attracted considerable interest, not least in new solutions for enhanced cybersecurity. The initiative in the defence segment continued to develop positively, albeit from low levels, with a doubling of sales within reach in 2026. At the end of the period, the business entity had a substantial order backlog of 1,036 MSEK, primarily comprising large orders from train manufacturers. Westermo’s sales increased by 30 percent to 435 MSEK in the third quarter, while EBITA increased by 61 percent to 81 MSEK, a record for the business entity. The EBITA margin for the quarter strengthened to 18.7 percent. The business entity continuously works to improve efficiency and future-proof its production system. Earnings for the period were charged with restructuring costs of 2.4 MSEK related to the consolidation of production facilities in Europe, which involved relocating production in Mainz, Germany, to the busi- ness entity’s Irish facility in Dublin. During the period, Westermo also invested in a new state-of-the-art circuit-board assembly line at its Stora Sundby plant. The 13.5 MSEK investment con- tributes to both greater efficiency and increased production capacity. Westermo BUSINESS ENTITY Net sales, Westermo The bars and left-hand scale indicate quarterly net sales. The solid curve and right-hand scale show rolling four quarter net sales, the dashed curve shows rolling four-quarter order intake. MSEK Rolling four quarters 1472,722 1441,674 1331,336 1316,635 1273,672 1291,464 1356,640 1378,039 1444,646 1542,163 1642,481 000 363,761 336,453 269,203 347,218 320,798 354,245 334,379 368,617 387,405 451,761 434,698 000 1376,254 1174,121 1159,570 1236,784 1243,171 1308,402 1336,016 1413,577 1594,399 1687,134 1725,027 000 staplar heldragen höger kolumn streckad vänster 0 100 200 300 400 500 600 0 300 600 900 1,200 1,500 1,800 0 50 100 150 200 250 300 350 400 0 100 200 300 400 500 600 700 800 1 2 3 4 1 2 3 41 2 3 4 2024 2025 2026 MSEK Quarter “For Westermo, the third-quarter result was one of the best in the business entity’s history.” Jenny Sjödahl, President and CEO 6EPENDION Q3 2026
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During the period, implementation began of the growth strategy developed during the first half of 2026 to secure the next phase of growth. The strategy entails an even clearer focus on achieving leading positions in selected geographies and sub-segments within Westermo’s four main segments, as well as a stronger and more efficient sales organization. Development expenditure as a share of sales decreased to 10.8 percent during the period. In total, the business entity invested 46.9 MSEK in development activities. During the period, the new Lynx 3518 network switch for critical infra- structure was launched, while the WeOS software platform was enhanced with additional cybersecurity and network management functionality. Third quarter Order intake increased by 12 percent to 343 MSEK (305). Excluding currency effects, order intake increased by 12 percent. Net sales increased by 30 percent to 435 MSEK (334). Excluding currency effects, net sales increased by 29 percent. The book-to-bill ratio amounted to 0.79. EBITDA increased to 107.8 MSEK (72.9). Depreciation and amortization excluding excess values amounted to 26.4 MSEK (22.2). EBITA increased to 81.4 MSEK (50.6), corresponding to a margin of 18.7 percent (15.1). Nine months Order intake increased by 32 percent to 1,293 MSEK (981). Excluding currency effects and acquisitions, order intake increased by 17 percent. Net sales increased by 26 percent to 1,274 MSEK (1,009). Excluding currency effects and acquisitions, net sales increased by 13 percent. EBITDA increased to 293.1 MSEK (225.0). Depreciation and amortization excluding excess values amounted to 78.3 MSEK (64.4). EBITA amounted to 214.8 MSEK (160.6), corresponding to an EBITA margin of 16.9 percent (15.9). 7EPENDION Q3 2026
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Net sales, Beijer Electronics MSEK Quarter MSEK Rolling four quarters The bars and left-hand scale indicate quarterly net sales. The solid curve and right-hand scale show rolling four quarter net sales, the dashed curve shows rolling four-quarter order intake. 845,590 832,642 789,062 806,931 823,478 833,869 854,888 844,053 890,851 934,687 957,486 000 streckad Höger kolumn 977,905 958,791 942,296 946,320 935,635 890,263 875,542 857,993 843,704 867,287 887,294 000 heldragen vänster kolumn 236,392 253,028 224,615 232,285 225,707 207,656 209,894 214,737 211,418 231,239 229,901 000 staplarna 0 50 100 150 200 250 300 0 200 400 600 800 1,000 1,200 0 100 200 300 400 500 600 700 800 1 2 3 41 2 3 4 2024 2025 2026 1 2 3 4 “Beijer Electronics is demonstrating increased stability and has strengthened its operating margin for the third consecutive quarter.” Jenny Sjödahl, President and CEO During the third quarter of 2026, Beijer Electronics continued to strengthen EBITA and the EBITA margin, fully in line with the business entity’s strategy. Order intake increased by 11 percent to 223 MSEK. Development in the energy segment was stable, while the business entity recorded growth in the marine and manufacturing industry segments. Within the energy segment, order intake from customers supplying the data centre market reached 80 MSEK year to date in 2026, making this area one of Beijer Electronics’ most important drivers of future growth. Sales increased by 10 percent to 230 MSEK during the third quarter. The new generation of X3 operator panels continued to increase as a share of the business entity’s sales and is contributing new customers and new business opportunities. Continued good cost discipline and the planned reduction in development expenditure contributed to stronger EBITA of 30.6 MSEK, corresponding to an EBITA margin of 13.3 percent. This means that Beijer Electronics is demonstrating increased stability and has strengthened its operating margin for the third consecutive quarter. During the period, Beijer Electronics invested 19.8 MSEK in development activities, corresponding to 8.6 percent of sales. The business entity strengthened its marine offering, which was presented at the international SMM trade fair. New offerings included further-developed operator panels in the X3 family featuring smartphone-like touch functionality, the LinkIQ plat- form for industrial connectivity, and WebIQ functionality for the marine segment. The business entity also strengthened its position in marine cybersecurity through DNV-compliant solutions supporting the Cyber Resilience Act. Beijer Electronics BUSINESS ENTITY 8EPENDION Q3 2026
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Cybersecurity is becoming increasingly important and is in growing demand among customers. During the third quarter, Beijer Electronics was certified according to the EU cyber- security standard for secure product development, confirming that its development activities meet international requirements and representing an important milestone in the company’s cybersecurity efforts. Third quarter Order intake increased by 11 percent to 223 MSEK (201). Excluding currency effects, order intake increased by 10 percent. Net sales increased by 10 percent to 230 MSEK (210). Excluding currency effects, net sales increased by 8 percent. The book-to-bill ratio amounted to 0.97. EBITDA increased to 52.9 MSEK (45.9). Depreciation and amortization excluding excess values amounted to 22.3 MSEK (19.6). EBITA increased to 30.6 MSEK (26.3), corresponding to a margin of 13.3 percent (12.5). Nine months Order intake increased by 18 percent to 749 MSEK (636). Excluding currency effects, order intake increased by 22 percent. Net sales increased by 5 percent to 673 MSEK (643). Excluding currency effects, net sales increased by 8 percent. EBITDA increased to 151.7 MSEK (122.3). Depreciation and amortization excluding excess values amounted to 68.4 MSEK (60.4). EBITA increased to 83.3 MSEK (61.8), corresponding to an EBITA margin of 12.4 percent (9.6). 9EPENDION Q3 2026
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Other financial information The Group’s investments, including capitalized development expenditure, amounted to 146 MSEK (526) during the first nine months of 2026. The comparative figure includes 382 MSEK relating to the acquisition of Welotec and 14 MSEK relating to an earn-out payment for Smart HMI. Cash flow from operating activities amounted to 259 MSEK (245). Equity amounted to 1,812 MSEK (1,617) on September 30. The equity/assets ratio was 52.0 percent (52.6). Cash and cash equivalents amounted to 198 MSEK (175). Net debt was 656 MSEK (742). The average number of employees was 857 (845). LTI program In accordance with the resolution of the 2025 Annual General Meeting, a share-based incentive program, LTI 2025/2028, has been implemented. Based on the authorization to issue shares within the framework of the program, the Board of Directors resolved in April 2026 to issue 59,000 Class C shares based on the estimated outcome of the program, and considering the company’s existing holdings of Class C shares issued in connection with corresponding previous LTI programs. The issue was directed to a financial institution and the shares were immediately repurchased by the company. Upon delivery to the participants in 2028, the repurchased Class C shares are intended to be converted into ordinary shares in accordance with the terms of the incentive program. In April 2026, the Board of Directors also resolved to convert 91,029 treasury Class C shares into the corresponding num- ber of ordinary shares and, in addition, to use 7,570 treasury ordinary shares converted in connection with corresponding previous LTI programs in order to execute the transfer of ordi- nary shares to participants in LTI 2023/2026 and the transfer of ordinary shares on Nasdaq Stockholm for cash flow hedging of social security contributions related to LTI 2023/2026. Following completion of the issue of Class C shares, the repurchase of Class C shares and the conversion of Class C shares into ordinary shares, the total number of shares amounted to 32,369,836, of which 32,243,284 were ordinary shares and 126,552 were Class C shares, corresponding to a total of 32,255,939.2 votes. Significant events During the first quarter, Ependion extended the Group’s existing financing agreement. The extension means that the financing now runs until October 22, 2028 and includes an option for a further one-year extension. During the third quarter of 2026, Ependion participated with GBP 1 million in a new share issue by the minority-owned company Blu Wireless Technology Limited. Financial reporting In connection with the publication of the report for the first quarter of 2026, the Group changed its primary operating profit measure from EBIT to EBITA. The new operating profit measure, EBITA, excludes amortization of surplus values from acquisitions but includes amortization of other intangible assets, such as capitalized development expenditure. A more detailed descrip- tion of the change is provided in Note 9. Financial targets The Group’s financial targets comprise three targets relating to growth, profitability and dividends. The growth target is annual organic growth of at least 10 percent, in addition to acquired growth. The profitability target is for the Group to achieve an EBITA margin of at least 15 percent. The Group shall be a divi- dend-paying company. Outlook for 2026 Ependion operates in attractive markets with solid underlying growth and has good prospects of achieving both its growth and profitability targets in the medium term. Investments in critical infrastructure such as railways, maritime applications and energy are increasing. The Group balances cost discipline with strategic forward looking investments focused on value creation. In the short term, geopolitical and economic uncer- tainty persists. After three strong quarters, however, we remain confident about the rest of the year and our ability to deliver profitable growth for the full year 2026. Malmö, October 23, 2026 Jenny Sjödahl President and CEO 10EPENDION Q3 2026
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Review report Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not pre- pared, in all material respects, 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. Malmö 23 October 2026 KPMG AB Jonas Nihlberg Authorized Public Accountant Ependion AB Corp. id. 556025–1851 Introduction We have reviewed the condensed interim financial infor- mation (interim report) of Ependion AB as of 30 September 2026 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of 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. Scope of review We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial infor- mation consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and conse- quently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. 11EPENDION Q3 2026
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The Group’s Financial Reports Consolidated Income Statement in summary SEK 000 Quarter 3 2026 Quarter 3 2025 9 months 2026 9 months 2025 Full year 2025 Net sales 663,595 543,586 1,942,882 1,649,398 2,231,753 Cost of goods sold -317,041 -254,299 -915,495 -769,296 -1,038,727 Gross profit 346,554 289,287 1,027,387 880,102 1,193,026 Sales expenses -102,621 -83,778 -307,211 -252,361 -346,426 Administration expenses -88,868 -76,689 -264,894 -248,647 -326,294 Research and development expenses -65,754 -63,568 -211,216 -188,476 -259,899 Other operating revenue and operating expenses 5,644 1,271 10,149 -6,273 -9,346 EBITA 94,955 66,523 254,215 184,345 251,060 Amortization and depreciation of excess values -8,450 -3,563 -24,633 -10,596 -18,988 EBIT 86,505 62,960 229,582 173,749 232,073 Financial income/expense -10,888 -7,501 -36,070 -28,312 -38,238 Profit before tax 75,617 55,459 193,512 145,437 193,835 Tax -18,707 -15,019 -50,657 -42,708 -47,094 Profit for the period 56,910 40,440 142,855 102,729 146,741 Basic earnings per share, SEK 1.77 1.26 4.44 3.35 4.73 Diluted earnings per share, SEK 1.76 1.25 4.42 3.33 4.70 Statement of Comprehensive Income SEK 000 Quarter 3 2026 Quarter 3 2025 9 months 2026 9 months 2025 Full year 2025 Profit for the period 56,910 40,440 142,855 102,729 146,741 Actuarial gains and losses 6,504 3,937 -993 3,082 11,108 Net investment hedge effects -4,230 2,127 -10,329 7,564 12,684 Change in fair value of equity instruments 2,120 -985 4,226 -3,161 -8,693 Translation differences 36,119 -24,942 90,398 -89,659 -132,338 Comprehensive income for the period 97,423 20,577 226,157 20,555 29,502 12EPENDION Q3 2026
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Consolidated Balance Sheet in summary SEK 000 Sept 30, 2026 Sept 30, 2025 Dec 31, 2025 ASSETS Fixed assets Intangible assets 1,952,573 1,713,628 1,901,477 Property, plant and equipment 108,618 102,311 102,038 Right-of-use assets 111,754 122,052 112,601 Financial fixed assets 128,475 113,221 135,279 Total fixed assets 2,301,420 2,051,212 2,251,395 Current assets Inventories 436,468 388,762 371,540 Accounts receivable 485,830 389,392 376,800 Other receivables 63,636 70,430 66,550 Cash and cash equivalents 198,278 174,839 159,563 Total current assets 1,184,212 1,023,423 974,453 Total assets 3,485,632 3,074,635 3,225,848 SEK 000 Sept 30, 2026 Sept 30, 2025 Dec 31, 2025 EQUITY AND LIABILITIES Equity attributable to equity holders of the parent 1,812,268 1,616,536 1,626,732 Total equity 1,812,268 1,616,536 1,626,732 Long-term liabilities Borrowings 396,907 431,927 415,984 Lease liabilities 66,761 76,827 68,803 Other long-term liabilities 201,723 191,838 336,858 Deferred tax liabilities 144,634 111,342 173,032 Total long-term liabilities 810,025 811,934 994,677 Current liabilities Borrowings 183,468 201,570 167,547 Lease liabilities 46,954 46,754 45,595 Accounts payable 178,975 155,701 164,155 Other liabilities 453,942 242,140 227,142 Total current liabilities 863,339 646,165 604,439 Total equity and liabilities 3,485,632 3,074,635 3,225,848 13EPENDION Q3 2026
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Consolidated Statement of Changes in Equity and Number of Shares SEK 000 Sept 30, 2026 Sept 30, 2025 Dec 31, 2025 Attributable to equity holders of the parent Opening balance, 1 January 1,626,732 1,331,895 1,331,895 New share issue after deducting for transaction expenses -260 291,211* 291,211* Re-purchase of treasury shares -20 -18 -18 Sale of treasury shares 3,838 4,866 4,866 Dividend -48,217 -36,312 -36,312 Share-based payment 4,038 4,339 5,588 Comprehensive income 226,157 20,555 29,502 Closing balance, shareholders’ equity 1,812,268 1,616,536 1,626,732 *A share issue of SEK 300 million was carried out to finance a business acquisition, with associated transaction costs of SEK 8.6 million. In addition, a share issue under the LTI program was completed in the amount of SEK 18 thousand, with related issuance costs of SEK 218 thousand. The number of ordinary shares amounts to 32,243,284 and the number of class C shares amounts to 126,552. 14EPENDION Q3 2026
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Consolidated Cash Flow Statement in summary SEK 000 Quarter 3 2026 Quarter 3 2025 9 months 2026 9 months 2025 Full year 2025 Cash flow from operating activities before changes in working capital 133,170 92,182 353,811 257,308 362,342 Changes in working capital -8,141 -12,232 -94,598 -12,364 12,206 Cash flow from operating activities 125,029 79,950 259,213 244,944 374,548 Cash flow from investments in tangible and intangible assets -52,755 -38,294 -132,841 -130,591 -180,068 Cash flow from acquisition of subsidiary and investment in other companies -12,837 -398 -12,837 -396,201 -434,383 Cash flow from other investing activities -231 -37 -39 1,024 772 Cash flow from investing activities -65,823 -38,729 -145,717 -525,768 -613,679 Cash flow from new share issue – -956 -260 291,211 291,211 Cash flow from interest-bearing liabilities* -51,904 -28,426 -54,405 52,352 -1,318 Dividend paid – – -48,217 -36,312 -36,312 Cash flow from other financing activities – -46 3,818 -1,872 4,847 Cash flow from financing activities -51,904 -29,428 -99,064 305,379 258,428 Cash flow for the period 7,302 11,793 14,432 24,555 19,297 Cash and cash equivalents at beginning of period 180,221 169,081 159,563 178,053 178,053 Exchange difference in cash and cash equivalents 10,755 -6,034 24,283 -27,769 -37,787 Cash and cash equivalents at end of period 198,278 174,839 198,278 174,839 159,563 Free cash flow 60,080 29,857 91,017 79,989 148,090 *of which amortization of lease liabilities -11,963 -11,762 -35,316 -35,388 -47,162 15EPENDION Q3 2026
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Notes to the financial statements in summary Note 1 General information Ependion AB (the “Company”), Corp. Id. No. 556025-1851, is a company with its registered office in Malmö, Sweden. This consolidated interim report for the Group (the “Interim Report”) for the period January–September 2026 includes the Company and its subsidiaries, referred to jointly below as Ependion. The Group’s consolidated accounting currency is SEK. All amounts are presented in thousands of SEK (SEK 000), unless otherwise stated. Note 2 Accounting principles Ependion’s consolidated accounts are prepared in accordance with IFRS® Accounting Standards and with the same accounting principles as described in the Financial Statement for 2025. Reporting for the Parent follows the Swedish Annual Accounts Act and RFR 2 Reporting for Legal Entities. Ependion’s Interim Report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of the Swedish Annual Accounts Act. Disclosures in accordance with IAS 34.16A are provided not only in the financial statements and related notes but also in other parts of the Interim Report. The Interim Report for the parent company has been prepared in accordance with the Swedish Annual Accounts Act’s chapter 9, Interim Reporting. Related party transactions have taken place to the same extent as in the previous year and the accounting policies described in the Financial Statement for 2025 apply. Ependion uses a number of financial key ratios that are not defined in the accounting regulations used by the company, so-called alternative performance measures (APM). For defini- tions of financial key figures, see page 25 of this report. Note 3 Risks and uncertainties Ependion is an international group and as such, it is exposed to several strategic, business, compliance and financial risks. Risk management is therefore an important process relative to the goals set by the Group. Throughout the Group, efficient risk management routines are an ongoing process within the frame- work of the Group’s operational management and a natural part of the continual follow-up of activities. Risk management within Ependion starts with an assessment in the business entity teams where the material risks to the business are continuously identified, followed by an assessment of the likelihood of the risks materializing and their potential impact on the Group. Once the material risks have been identi- fied and assessed, decisions are made on activities to eliminate or reduce the risks. In addition to the risks and uncertainties described in Ependion’s Annual Report for 2025, pages 52-54 and 156-157, the ongoing risk management has not resulted in additional risks or uncertainties. 16EPENDION Q3 2026
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Note 5 Reconciliation of Consolidated Net Debt SEK 000 Sept 30, 2026 Sept 30, 2025 Dec 31, 2025 Borrowings 580,375 633,496 583,531 Pension provisions 160,026 159,470 153,530 Liabilities attributable to right-of-use assets 113,715 123,581 114,398 Total interest-bearing liabilities 854,116 916,547 851,459 Total cash and cash equivalents 198,278 174,839 159,563 Net debt 655,838 741,708 691,896 Note 4 Consolidated Key Financial Ratios SEK 000 Sept 30, 2026 Sept 30, 2025 Dec 31, 2025 Gross margin, % 52.9 53.4 53.5 EBITA margin, % 13.1 11.2 11.2 EBIT margin, % 11.8 10.5 10.4 Profit margin, % 7.4 6.2 6.6 Equity ratio, % 52.0 52.6 50.4 Equity per share before dilution, SEK 56.3 52.8 52.5 Basic earnings per share, SEK 4.44 3.35 4.73 Diluted earnings per share, SEK 4.42 3.33 4.70 Return on equity after tax, % 10.9 9.6 9.9 Return on capital employed, % 11.2 10.3 10.1 Return on net operating assets, % 14.6 13.2 13.0 Financial net debt in relation to EBITDA 1.0 1.3 1.2 Average number of employees 857 845 846 Note 6 Financial assets valued at fair value The Group’s financial assets, in the form of long-term securities holdings for unlisted shares, are reported at fair value under level 3, i.e., determined based on inputs that are not observable in the market. The fair value valuation is done by discounting future cash flows with a discount rate based on comparable yield requirements for comparable companies and financial instruments. The table below presents a reconciliation between the opening and closing balance of the assets included in level 3. SEK 000 Sept 30, 2026 Sept 30, 2025 Dec 31, 2025 Unlisted shares Opening balance 74,820 46,389 46,389 Investments 12,837 – 38,182 Reported in other comprehensive income 5,324 -3,981 -9,751 Closing balance 92,981 42,408 74,820 The Group’s financial liabilities, in the form of short-term contingent consideration, are measured at fair value under Level 3, i.e., determined based on inputs that are not observable in the market. The contingent consideration has been discounted using a discount rate assessed to be at market terms. SEK 000 Sept 30, 2026 Sept 30, 2025 Dec 31, 2025 Contingent consideration Opening balance 152,696 14,358 Additions from acquisitions – 149,865 Payments of consideration – -14,358 Interest expense 4,435 3,398 Foreign exchange differences 7,423 -567 Closing balance* 164,555 152,696 *The balance was classified as a non-current liability until April 1, 2026, and as a current liability thereafter. 17EPENDION Q3 2026
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Note 7 Allocation of Order Intake and Net Sales SEK 000 Quarter 3 2026 Quarter 3 2025 9 months 2026 9 months 2025 Full year 2025 Order Intake by segment Train 46,591 58,907 341,333 317,307 472,620 Trackside 41,789 49,935 146,735 129,421 176,443 Energy 174,242 141,428 525,656 344,992 516,117 Manufacturing 123,260 109,945 368,886 282,736 375,451 Marine 87,368 63,010 280,891 227,438 304,562 Other 92,201 81,851 375,191 312,174 408,158 Total Group 565,451 505,076 2,038,692 1,614,068 2,253,351 Net sales by segment Train 114,392 93,575 336,545 322,073 437,086 Trackside 53,334 37,782 171,602 99,266 148,333 Energy 170,978 131,855 493,438 352,447 480,685 Manufacturing 118,322 104,014 329,977 300,355 401,564 Marine 88,255 77,169 247,454 234,563 304,605 Other 118,314 99,191 363,866 340,694 459,480 Total Group 663,595 543,586 1,942,882 1,649,398 2,231,753 Net sales by geographical market Nordics 123,343 94,547 343,357 333,961 431,139 Rest of Europe 313,785 281,965 992,007 790,657 1,086,898 Americas 85,195 60,072 220,004 209,128 273,416 Asia 123,054 96,013 348,851 302,878 426,344 Rest of world 18,218 10,989 38,663 12,774 13,956 Total Group 663,595 543,586 1,942,882 1,649,398 2,231,753 18EPENDION Q3 2026
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SEK 000 Quarter 3 2026 Quarter 3 2025 9 months 2026 9 months 2025 Full year 2025 Net sales by category THE GROUP Operator panels and accessories 182,272 168,335 540,258 519,223 687,446 Network equipment 348,138 274,787 1,052,298 859,103 1,182,368 Edge computing 62,300 27,660 139,894 39,555 63,065 Software 9,898 9,008 27,401 23,497 32,361 Servicing and other services 15,859 13,278 43,027 40,576 54,198 Third-party products 45,128 50,518 140,004 167,444 212,315 Total 663,595 543,586 1,942,882 1,649,398 2,231,753 WESTERMO Network equipment 338,085 262,185 1,023,625 821,389 1,129,456 Edge computing 62,300 27,660 139,894 39,555 63,065 Software 2,234 3,824 6,190 6,948 9,670 Servicing and other services 13,179 10,845 34,538 36,692 47,588 Third-party products 18,828 29,783 69,300 104,603 127,883 Intercompany sales 72 82 318 235 377 Total 434,698 334,379 1,273,865 1,009,422 1,378,039 BEIJER ELECTRONICS Operator panels and accessories 182,272 168,335 540,258 519,223 687,446 Network equipment 10,053 12,602 28,673 37,714 52,912 Software 7,664 5,184 21,211 16,549 22,691 Servicing and other services 2,680 2,433 8,489 3,884 6,610 Third-party products 26,300 20,735 70,704 62,841 84,432 Intercompany sales 932 605 3,223 3,046 3,902 Total 229,901 209,894 672,558 643,257 857,993 19EPENDION Q3 2026
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Note 8 Operating Segments SEK 000 Quarter 3 2026 Quarter 3 2025 9 months 2026 9 months 2025 Full year 2025 TOTAL GROUP Order intake 565,451 505,076 2,038,692 1,614,068 2,253,351 of which acquired order intake (%) – 10.6 7.9 4.7 6.9 Net sales 663,595 543,586 1,942,882 1,649,398 2,231,753 of which acquired net sales (%) – 12.7 7.8 6.5 7.1 EBITDA 146,149 110,764 408,281 316,329 432,549 Amortization and depreciation excluding excess values -51,194 -44,240 -154,066 -131,984 -181,489 EBITA 94,955 66,524 254,215 184,345 251,060 EBITA margin, % 14.3 12.2 13.1 11.2 11.2 Investments in intangible and tangible assets 52,755 38,107 132,841 130,751 180,570 of which capitalized development expenditure 34,381 31,931 107,378 112,377 154,918 Product development expenditure, % 10.2 12.9 11.4 13.6 13.7 Backlog – – 1,240,058 1,051,755 1,089,122 of which acquired order backlog (%) – – – 7.3 – WESTERMO Order intake 343,131 305,238 1,292,879 981,429 1,413,577 of which acquired order intake (%) – 17.5 12.7 7.8 11.4 Net sales 434,698 334,379 1,273,865 1,009,422 1,378,039 of which acquired net sales (%) – 20.8 12.1 10.6 11.9 EBITDA 107,793 72,870 293,086 225,025 308,989 Amortization and depreciation excluding excess values -26,398 -22,235 -78,262 -64,389 -87,849 EBITA 81,395 50,635 214,824 160,636 221,140 EBITA margin, % 18.7 15.1 16.9 15.9 16.0 Investments in intangible and tangible assets 33,935 20,170 76,063 69,627 95,415 of which capitalized development expenditure 18,756 16,293 56,698 58,202 79,481 Product development expenditure, % 10.8 14.4 11.9 14.6 14.7 Backlog – – 1,035,894 927,812 974,513 of which acquired order backlog (%) – – – 8.2 – 20EPENDION Q3 2026
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SEK 000 Quarter 3 2026 Quarter 3 2025 9 months 2026 9 months 2025 Full year 2025 BEIJER ELECTRONICS Order intake 223,325 200,526 749,353 635,920 844,053 Net sales 229,901 209,894 672,558 643,257 857,993 EBITDA 52,937 45,924 151,665 122,260 164,804 Amortization and depreciation excluding excess values -22,309 -19,611 -68,415 -60,414 -83,956 EBITA 30,628 26,313 83,250 61,846 80,847 EBITA margin, % 13.3 12.5 12.4 9.6 9.4 Investments in intangible and tangible assets 16,653 17,937 54,597 58,728 82,396 of which capitalized development expenditure 15,625 15,638 50,680 54,175 75,437 Product development expenditure, % 8.6 10.1 10.0 11.4 11.8 Backlog – – 204,164 123,943 114,609 PARENT COMPANY AND GROUP ADJUSTMENT Order intake (elimination) -1,004 -688 -3,540 -3,281 -4,279 Net sales (elimination) -1,004 -688 -3,540 -3,281 -4,279 EBITDA -14,581 -8,030 -36,470 -30,956 -41,243 Depreciation -2,487 -2,394 -7,389 -7,181 -9,684 EBITA -17,068 -10,424 -43,859 -38,137 -50,927 Investments in intangible and tangible assets 2,167 – 2,181 2,396 2,758 21EPENDION Q3 2026
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Note 9 Historical quarterly data for operating segments, including EBITA SEK 000 Full year 2025 Quarter 4 2025 Quarter 3 2025 Quarter 2 2025 Quarter 1 2025 Full year 2024 Quarter 4 2024 Quarter 3 2024 Quarter 2 2024 Quarter 1 2024 Full year 2023 Quarter 4 2023 Quarter 3 2023 Quarter 2 2023 Quarter 1 2023 THE GROUP Net sales 2,231,753 582,355 543,586 560,756 545,056 2,258,125 578,217 493,033 588,355 598,521 2,470,647 589,731 619,334 638,407 623,174 EBITDA 432,549 116,220 110,764 108,822 96,743 427,473 109,792 96,856 103,737 117,087 473,955 99,462 128,143 123,204 123,146 Amortization and depreciation excluding excess values -181,489 -49,505 -44,240 -43,692 -44,052 -161,605 -40,501 -42,259 -39,934 -38,911 -138,911 -34,613 -35,532 -34,060 -34,706 EBITA 251,060 66,715 66,524 65,131 52,691 265,868 69,292 54,598 63,802 78,176 335,044 64,848 92,611 89,145 88,440 EBITA % 11.2 11.5 12.2 11.6 9.7 11.8 12.0 11.1 10.8 13.1 13.6 11.0 15.0 14.0 14.2 Amortization and depreciation of excess values -18,988 -8,392 -3,563 -3,501 -3,531 -14,961 -3,790 -3,763 -3,726 -3,682 -13,360 -3,374 -3,442 -3,324 -3,221 EBIT 232,073 58,324 62,960 61,629 49,159 250,907 65,502 50,834 60,077 74,494 321,684 61,474 89,170 85,821 85,219 EBIT % 10.4 10.0 11.6 11.0 9.0 11.1 11.3 10.3 10.2 12.4 13.0 10.4 14.4 13.4 13.7 WESTERMO Net sales 1,378,039 368,617 334,379 354,245 320,798 1,316,635 347,219 269,203 336,453 363,761 1,443,994 361,919 379,541 367,501 335,033 EBITDA 308,989 83,963 72,870 77,633 74,523 288,734 83,106 60,824 67,048 77,755 316,930 74,894 87,182 80,498 74,356 Amortization and depreciation excluding excess values -87,849 -23,459 -22,235 -21,064 -21,091 -77,287 -18,330 -20,254 -19,467 -19,236 -66,674 -15,998 -17,240 -16,909 -16,527 EBITA 221,140 60,504 50,635 56,570 53,432 211,447 64,776 40,571 47,581 58,519 250,255 58,896 69,941 63,590 57,829 EBITA % 16.0 16.4 15.1 16.0 16.7 16.1 18.7 15.1 14.1 16.1 17.3 16.3 18.4 17.3 17.3 Amortization and depreciation of excess values -16,692 -7,825 -2,981 -2,932 -2,954 -12,573 -3,184 -3,166 -3,129 -3,093 -12,534 -3,169 -3,234 -3,115 -3,017 EBIT 204,448 52,679 47,653 53,638 50,478 198,874 61,592 37,404 44,452 55,426 237,722 55,726 66,707 60,475 54,812 EBIT % 14.8 14.3 14.3 15.1 15.7 15.1 17.7 13.9 13.2 15.2 16.5 15.4 17.6 16.5 16.4 BEIJER ELECTRONICS Net sales 857,993 214,737 209,894 207,656 225,707 946,320 232,285 224,615 253,028 236,392 1,032,867 228,261 241,109 272,143 291,354 EBITDA 164,804 42,544 45,924 39,941 36,395 182,861 39,742 45,894 48,021 49,204 198,565 35,432 46,869 56,053 60,211 Amortization and depreciation excluding excess values -83,956 -23,542 -19,611 -20,206 -20,597 -74,462 -19,888 -19,503 -17,835 -17,236 -63,992 -16,305 -15,984 -15,702 -16,001 EBITA 80,847 19,001 26,313 19,735 15,798 108,398 19,854 26,391 30,186 31,968 134,573 19,127 30,883 40,351 44,210 EBITA % 9.4 8.8 12.5 9.5 7.0 11.5 8.5 11.7 11.9 13.5 13.0 8.4 12.8 14.8 15.2 Amortization and depreciation of excess values -2,296 -567 -582 -569 -577 -2,388 -606 -597 -597 -589 -826 -205 -208 -209 -204 EBIT 78,552 18,434 25,732 19,165 15,220 106,010 19,248 25,794 29,589 31,379 133,746 18,923 30,676 40,141 44,006 EBIT % 9.2 8.6 12.3 9.2 6.7 11.2 8.3 11.5 11.7 13.3 12.9 8.3 12.7 14.8 15.1 PARENT COMPANY AND GROUP ADJUSTMENT Net sales -4,279 -998 -688 -1,144 -1,449 -4,830 -1,287 -785 -1,126 -1,632 -6,214 -449 -1,316 -1,236 -3,213 EBITDA -41,243 -10,287 -8,030 -8,752 -14,175 -44,122 -13,056 -9,862 -11,333 -9,872 -41,540 -10,864 -5,908 -13,347 -11,420 Amortization and depreciation excluding excess values -9,684 -2,504 -2,394 -2,422 -2,364 -9,856 -2,283 -2,502 -2,632 -2,439 -8,245 -2,310 -2,308 -1,449 -2,178 EBITA -50,927 -12,790 -10,424 -11,174 -16,539 -53,977 -15,338 -12,364 -13,965 -12,311 -49,784 -13,175 -8,213 -14,796 -13,599 Amortization and depreciation of excess values – – – – – – – – – – – – – – – EBIT -50,927 -12,790 -10,424 -11,174 -16,539 -53,977 -15,338 -12,364 -13,965 -12,311 -49,784 -13,175 -8,213 -14,796 -13,599
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Parent Company Income Statement in summary SEK 000 Quarter 3 2026 Quarter 3 2025 9 months 2026 9 months 2025 Full year 2025 Income Statement Net sales 10,537 10,079 31,611 30,236 40,314 Administration expenses -26,503 -19,081 -72,961 -64,703 -87,090 Operating profit -15,966 -9,002 -41,350 -34,467 -46,776 Financial income/expense 10,720 -4,028 64,647* 47,047* 38,093** Profit before tax -5,246 -13,030 23,297 12,580 -8,683 Appropriations 70,576 Tax 1,822 1,272 5,934 5,234 -2,111 Profit for the period -3,424 -11,758 29,231 17,814 59,782 *Includes received dividend from subsidiary of 40 MSEK (57 MSEK). **Includes received dividend from subsidiary of 57 MSEK. Parent Company Financial Reports 23EPENDION Q3 2026
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Parent Company Balance Sheet in summary SEK 000 Sept 30, 2026 Sept 30, 2025 Dec 31, 2025 ASSETS Fixed assets Intangible and tangible assets 10,044 10,406 10,019 Other financial assets 1,616,300 1,591,961 1,567,318 Total fixed assets 1,626,344 1,602,367 1,577,337 Current assets Receivables from group companies 55,006 50,480 129,084 Other receivables 17,448 14,360 20,979 Cash and cash equivalents – 7,534 – Total current assets 72,454 72,374 150,063 Total assets 1,698,798 1,674,741 1,727,400 EQUITY AND LIABILITIES Equity Restricted equity 15,487 16,996 15,468 Non-restricted equity 655,489 621,309 666,231 Total equity 670,976 638,305 681,699 Current liabilities Liabilities to credit institutions 396,907 431,927 415,984 Provisions 23,244 23,205 23,049 Liabilities to Group companies 434,285 394,650 452,032 Total long-term liabilities 854,436 849,782 891,065 Current liabilities Liabilities to credit institutions 148,692 167, 249 135,024 Other liabilities 24,694 19,405 19,612 Total current liabilities 173,386 186,654 154,636 Total equity and liabilities 1,698,798 1,674,741 1,727,400 24EPENDION Q3 2026
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Ependion presents a number of financial measures in Annual and Interim Reports that are not defined according to IFRS, but are consistent with how investors and the company’s management measure the company’s financial performance. Ependion considers that these metrics offer valuable additional information to investors and the company’s management as they enable evaluation of trends and the company’s performance. These alternative performance measures should not be viewed as a substitute for financial information presented in accordance with IFRS, but rather as a complement. The supplementary alternative performance measures stated in this report may differ in their computation methods from similar measures used by other companies. Reconciliations of alternative performance measures can be found on Ependion’s website: https://www.ependion.com/en/investors/alternative-performance-measures Financial definitions Average Average values are calculated as the mean value in the relevant reporting period and corresponding item in the comparative period 12 months earlier. Average number of employees Average number of employees during the year based on working hours. Excludes contracted staff. Basic earnings per share Net income after tax, attributable to the parent company’s shareholders, in relation to the weighted number of outstanding shares. Capital employed Equity plus interest-bearing liabilities. Earnings per share after dilution Earnings per share after dilution is calculated by adjusting the weighted average number of shares by the estimated number of shares from incentive programs. Incentive programs are included in the dilution calculation from the end of each program. EBIT Net sales less operating expenses. EBITA EBIT excluding amortization and depreciation of excess values. EBITA margin EBITA in relation to net sales. EBITDA EBIT excluding depreciation and amortization on tangible assets (including right-of-use assets) and intangible assets. EBIT margin EBIT in relation to net sales. Equity ratio Equity in relation to total assets. Equity per share before dilution Equity attributable to the parent company’s shareholders divided by the number of shares. Financial net debt in relation to EBITDA Interest-bearing liabilities, excluding net provisions for pensions, less cash and cash equivalents and investments in securities, divided by rolling 12-month EBITDA, adjusted for restructuring costs and acquired EBITDA. Free cash flow Cash flow from operating activities, cash flow from investing activities excluding cash flow from acquisitions of subsidiaries and investments in other companies, as well as amortization of lease liability. Net debt Interest-bearing liabilities less cash and cash equivalents and short-term investments. Net operating assets Equity plus interest-bearing liabilities less financial assets. Operative cash flow Cash flow from operating activities. Order backlog The total value of customer orders received by the Group that have not yet been delivered. Order intake Net sales less the difference between opening and closing order backlog. Product development expenditure Expenditure related to product development work, such as personnel costs, external consultancy fees, and other external costs. This also includes expenses that are capitalized as assets in the balance sheet. Product development expenditure in relation to net sales Product development expenditure in relation to net sales. Profit margin Profit after tax in relation to net sales. Return on capital employed Profit before tax plus financial expenses for the last 12 months in relation to average capital employed. Return on equity after tax Profit after tax for the last 12 months in relation to average equity. Return on operating capital EBIT for the last 12 months in relation to average operating capital. Working capital Current assets less current liabilities. 25EPENDION Q3 2026
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Ependion AB Ependion AB is an expansive global technology group delivering digital solutions for secure control, management, visualization and data communication for industrial applications in environments where reliability and high quality are critical factors. The Group’s customers include some of the world’s leading companies. Ependion consists of independent business entities with total sales of 2.2 billion SEK in 2025 and approximately 1,000 employees. The company is listed on Nasdaq Stockholm Main Market’s Mid Cap-list under the ticker EPEN. More Information You can subscribe for financial information on Ependion via e-mail. Subscribe easily at our website, www.ependion.com. If you have any questions about Ependion, please call +46 (0)40 35 84 00, or send an email: info@ependion.com. Financial Calendar 2 February 2027 .....................................................................................................................................Financial Statement 27 April 2027 ............................................................................................................................Three-month Interim Report 12 May 2027 ...................................................................................................................................Annual General Meeting 15 July 2027 ..................................................................................................................................Six-month Interim Report 22 October 2027 .......................................................................................................................Nine-month Interim Report 26EPENDION Q3 2026