Slides
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Company Presentation
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Ferronordic as an investment 2 ▪ Robust and scalable business model ▪ Strong brand portfolio and OEM relationships ▪ Sustainability integrated part of business model ▪ Positioned to benefit from trends in • Electrification • Infrastructure investment • Shared asset models ▪ Poised for organic growth and bolt-on acquisitions • US - Strong market with growth potential • Germany - Turnaround that will capture recovery • Network, brand and product extension opportunities ▪ Open for strategic M&A ▪ Experienced management to execute ▪ Value creation and dividend potential ▪ Stronger balance sheet ▪ Improving cashflows ▪ Growth and margin
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Introduction to Ferronordic Group • Founded in 2010 • Listed on Nasdaq Stockholm in 2017 • Dealer of Volvo CE in Kazakhstan from January 2019 • Dealer of Mecalac in Kazakhstan from January 2019 • Sales of new and used construction equipment • Service and technical support • Dealer of Volvo and Renault Trucks in parts of Germany from January 2020 • Sales of new and used trucks • Service and technical support • Rental business • Growing electric rental business and sustainable transport solutions Germany CIS USA Kazakhstan 3 • Rudd Equipment Company is the authorized dealer of Volvo CE in all or parts of nine states in eastern USA • The company also represents other brands such as Hitachi, Sandvik, Link-Belt Cranes and Bergmann • Sales of new and used construction and other equipment • Service and technical support • Rental business
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Introduction to Ferronordic 4 Development 2010 (Start) Employees Revenue (SEKm)1 Outlets ~160 1,184 6 Q3 2025 Employees Revenue (SEKm) Outlets 815 4,701 37 Revenue by activity (LTM) Revenue by industry - US (2024) 1) Annualized last twelve months (LTM). Equipment and Truck Sales 53% Aftermarket Sales 39% Other Revenue 8% Revenue by segment (LTM) Germany 36% Kazakhstan 3% USA 61% General Construction and Other 36% Road Construction 10% Quarriers & Aggregates 10% Government 10% Recycling & Waste 8% Lumber Sawmill 6% Agriculture & Landscaping 6% Other 12% Mining 2%
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Business model 5 New population New equipment sale New truck sale Rental solutions Service and parts Parts and service sales Service agreements Overhauls Rebuild Providing new life to older machines Remanufacturing of parts and components Used sale Used machine sale to customer Major component rebuilds sale Used equipment traded into sales area Used equipment traded out of sales area
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6 Vision, values and strategic cornerstones Vision: To be the leading service and sales company in our markets • To be the leading service and sales company in our markets • To support the growth and leadership of our customers • Respect • Quality • Excellence • Great team • Customer centricity • Building on strong brands • Operational excellence Vision Mission Values and operating principles Strategic cornerstones
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7 Strategic objectives Vision: To be the leading service and sales company in our markets Service and parts absorption rate of at least 1.0 x Expansion into related business areas Leadership in the market for construction equipment and trucks Industry leading digital service and sales platforms Sustainable transport services Geographic expansion
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Strategic cornerstones Great team Operational excellence ▪ Safety and sustainability ▪ Continuous improvement of practices and processes ▪ Business driven digital service and sales processes ▪ Close cooperation with manufacturers ▪ High employee engagement Building on strong brands 8 ▪ World-leading manufacturers of construction equipment and trucks ▪ Premium products – highest safety, minimal environmental impact ▪ Leading brand positions ▪ Broad & customized solutions ▪ Support customers’ growth ▪ Leading service and product availability ▪ Tailored customer solutions (including sustainable transport solutions and otherbusiness services) ▪ Work towards common goals ▪ Take initiative regardless of rank or position ▪ Fast-paced, dynamic, determined to create value ▪ Mutual trust, dialogue and openness Customer centricity
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Building on a great team 9 Agile sales teams Flat & flexible organization Top industry technicians Experienced management Performance management Training & development Talent management & succession planning Reward management Designing effective organizational structures Recruitment, selection & onboarding Great team
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Building on strong brands 10 Since 1985 USA 2019 Kazakhstan Product range Full VCE range Market USA Kazakhstan Volvo CE Since 1987 Product range Excavators and rigid haulers Market USA Link-Belt Cranes Product range Telescopic and lattice boom cranes Sandvik Product range Surface drill rigs Bergmann Product range Compact haulers Mecalac Since 2019 Product range Backhoe loaders Market Kazakhstan ~13% of 2020 Revenue Since 1980s Since 1970s Since 2020 Market USA Market USA Market USA Volvo Trucks Since 2020 Product range Full Volvo Trucks range Market Germany Renault Trucks Since 2020 Market Germany Product range Full Renault Trucks range Hitachi
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Aftermarket focus Aftermarket sales (SEKm) • Proactive customer coverage based on real- time data from the existing machine population • Proprietary system transforms machine telematic signals (e.g. VCE’s CareTrack) into sales leads on the mobile devices of sales and service staff • Ferronordic’s dense service networks across our sales areas in US, Germany and Kazakhstan allow for fast delivery of parts and timely customer support • Spare parts delivery • Telematics - through Care-Track; fuel efficiency control, operator efficiency, fleet management • Operator training • Preventive maintenance service • Planned andunplanned repair • Overhaul • Providing new life to older machines • Diagnostics of machines • Remanufacturingof vital parts Offering 11 Share of sales (LTM) Germany Machine Sales 50%Aftermarket 40% Other 10% Share of sales (LTM) USA Trucks Sales 58% Aftermarket 37% Other 5% Aftermarket sales 269 365 479 608 625 61424 40 52 60 46 4880 991 1.153 0 400 800 1.200 1.600 2.000 2020 2021 2022 2023 2024 LTM Germany Kazakhstan US
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Moving torward further customer integration Complexity of Customer Demand Ferronordic’s Offering Total Cost of Ownership BusinessConsultancy Business Services Open Platform Customised Solutions Segment Experience Grow in new Segment Finance Rental Services Part Sales Machine/Truck Sales Upcycling 12
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Automatic Lead Generation 13 Machine data Rules engine Sales leads Sales action Follow up Customer Equipment sales rep Service and parts sales rep
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Sustainability at Ferronordic 14 • Double materiality analysis conducted in 2024 • Preparations for European Sustainability Reporting Standards (ESRS) reporting in line with Corporate Sustainability Reporting Directive (CSRD) • Footprint and impact analysis underway to set sustainability objectives Environment ▪ Helping customers decarbonize ▪ Driving operational efficiency ▪ Contributing to a circular economy ▪ Building the infrastructure Social ▪ Focus on health and safety ▪ Training and development 16 out of 22 workshops in Germany were certified for renewable energy in 2023 In Germany, e-trucks accounted for 1.5% of new truck sales (in units) in 2024 ESG focus areas
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15 Key industry trends Infrastructure investments Electrification Green transition Electrification Equipment-as-a- Service Electrification Important strategy to reduce CO2 emissions and to transform the mobility industry Demand for investments driven by need to upgrade existing infrastructure and by new technologies Business model where trucks and equipment are offered to customers on flexible rental, subscription or pay-per-unit of transportation basis
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Oil production (% of total)4 World’s second largest market for construction equipment USA 16 • Population: ~335 million1 • Area: 9.8 million sq. km • World’s largest economy with 2024 GDP of USD 29tn2 • Accounts for approx. one-fourth of global output, one-tenth of global trade flows, one-fifth of global FDI stock and one-fifth of global energy demand • The US dollar is the most widely used currency in international transactions and is the world's reserve currency • Largest producer of oil & gas as well as other commodities • World’s largest gold reserves of 8,133 tonnes3 US at a glance Gold production (% of total)5 21% 11% 11% 6% 5% 5% 4% 4% 2% USA Saudi Arabia Russia Canada Iran Iraq China UAE Kazakhstan 12% 9% 9% 6% 5% 4% 4% 4% 4% China Russia Australia Canada USA Kazakhstan Mexico Ghana Uzbekistan Sources: 1) US Census Bureau 2) IMF 3) World Gold Council 4) Energy Institute (EI) Statistical Review of World Energy 2025 5) US Geological Survey, Mineral Commodity Summaries, January 2025 Gas production (% of total)4 25% 15% 6% 6% 5% 4% 4% 3% 1% USA Russia Iran China Canada Qatar Australia Saudi Arabia Kazakhstan
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USA Network 17 MO IL IN OH PA WV KY Indianapolis Fort Wayne Corbin Prestonsburg Cincinnati Charleston Louisville Columbus Pittsburgh Clearfield St. Louis Evansville Cleveland MO IL IN KY OH WV PA (13) Ferronordic outlets in US as of November 2025 • In November 2023 Ferronordic acquired 100% of the shares in the Rudd Equipment Company • Rudd is one of the largest distributors of Volvo CE as well as other strong brands such as Hitachi, Sandvik, Link-Belt Cranes and Bergmann • The company’s sales area for Volvo CE covers all or parts of nine states: Kentucky; West Virginia (partly); Ohio; Indiana (partly); Western Pennsylvania; Eastern Missouri; Southern Illinois and several counties in Tennessee and Maryland • US is the world’s second largest market for construction equipment with substantive infrastructure investment programs • In 2024, the total market for Volvo Construction Equipment products (GPE) in Rudd’s sales area amounted to 3,770 units
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What makes Rudd special? 18 Outstanding sales team Widely acclaimed service In-house customer support center Training centers In-house apprentice and master technician programs Machine rebuilds High parts availability Component rebuilds and exchange components
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Growth opportunities 19 Grow market share Improve rental fleet efficiency Grow service and parts sales
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German GDP development2 Europe’s largest truck market Germany 20 • Population: ~84 million1 • World’s 3rd largest exporter in the world with exports over EUR 1.5tn1 • World’s 3rd largest economy with 2024 GDP of USD 4.7tn2 • Accounts for approx. one-fourth of EU total GDP • Accounts for approx. one-third of EU total industrial production • Europe’s key logistics hub, shaped by its geographical location, economic strength and advanced infrastructure • Strong focus on green transition and emobility Germany at a glance Sources: 1) Destatis 2) IMF 0,5% 0,4% 2,2% 1,7% 2,3% 2,7% 1,1% 1,0% -4,1% 3,7% 1,4% -0,3% -0,2% 0,2% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025e
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German truck market Heavy truck registrations in Germany (units) 6 Sources: Germany registrations data compiled by Volvo Trucks (until September 2025). Federal Statistical Office Germany (Destatis). * Truck toll mileage index is a fixed base index that traces the development of the mileage of heavy trucks (with four or more axles) on German federal motorways and is calculated from digital process data from the truck toll collection system. 21 67.797 40.322 48.827 60.218 55.167 55.215 58.574 61.940 65.280 66.441 68.450 70.264 50.427 55.386 55.089 68.982 60.213 51.933 75 80 85 90 95 100 105 110 115 120 0 10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 LTM Heavy truck registrations Average truck toll mileage index*
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Germany Network 22 (20) Ferronordic outlets in Germany as of November 2025 Hanover Barleben Dessau Leipzig Görschen Dresden BautzenKassel Haiger Frankfurt Fulda Limburg Nordhausen Bergstrasse Bingen Bad Hersfeld Kirn Coswig Peine • Ferronordic expanded to become dealer for Volvo and Renault Trucks in Germany in January 2020 • Germany is Europe’s largest trucks market with 60,000 registrations in 2024 • Ferronordic’s sales area covers approx. 18% of the German market for heavy trucks • Expansion of service network and integration of acquired workshops mainly completed • Professional teams for service, sales and support • Service organization well positioned for growth Northeim • Potential for substantial increase of market share and population growth
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Strategy 23 Expand and improve the dealer network in our sales area1 Take full control of service and parts sales in our sales area2 Grow market share and population3 Increase efficiency in organization 4
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24 Driving organic growth Capture the population • Population analysis • Service contracts • Connectivity • Increasing mechanic productivity and workshop efficiency Price optimization • Dynamic pricing models • Special offers and targeted discounts where strategic
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25 Shift to electric EU law: Manufacturers must cut CO₂ emissions by 45% by 2030 for new trucks sold in the EU, compared to 2019 levels We assume at least 20% of all trucks registered in Germany by 2028 will be electric Volvo Trucks and Renault Trucks have leading market shares in e-trucks in Europe Shift to electric will help us to grow overall market share McKinsey: Prices for e-trucks will be lower than today but still 50% higher than today’s conventional trucks Revenue will grow significantly as we sell more electric trucks Subscription data: Repair and maintenance cost of e-trucks are similar or higher than for conventional trucks Potential for service and parts sales should remain stable Assumption: Transition will generate multiple new opportunities Thanks to our electric rental fleet, we are well situated to catch new opportunities 1) BEV is battery electric vehicle; FCEV is fuel-cell electric vehicle. Source: McKinsey, “The bumpy road to zero-emission trucks”
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26 • In December 2021 we placed our first order of 32 fully electric medium duty trucks from Volvo Trucks and Renault Trucks • Awarded up to EUR 23 million in government subsidies • Aim to develop a rental business dedicated to electric trucks ▪ Help customers transition to battery electric ▪ Become experts in sustainable transport solutions ▪ Develop in-house sustainable transport service capabilities • Fleet of 103 trucks at the end of September 2025 Electric transport opportunity
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27 Market situation ▪ The customers of our customers increasingly want to and need to procure zero-emission transport solutions ▪ Logistics companies are reluctant to switch to electric trucks despite potential for lower TCOs and higher profitability Opportunity ▪ Fill the gap by providing sustainable transport services to transport buyers ▪ Use experience of dealer and supplier of contracting services in other markets to become leading service provider ▪ Leverage knowledge from sustainable transport business to increase sales of electric trucks Sustainable transport solutions
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Oil production (% of total)3 Key regional hub Kazakhstan 28 • Population: ~20 million1 • Area: 2.7 million sq. km1 • Major transport and logistics hub in the region linking Europe and Asia • Rich in oil & gas (20-25% of GDP and 60-70% of exports) • Large producer of gold, copper, zinc and chromium • Approx. USD 122 billion2 in international currency reserves and gold • Government gross debt/GDP ratio of 25% (2024)5 Kazakhstan at a glance Gold production (% of total)4 Kazakhstan’s GDP development5 21% 11% 11% 6% 5% 5% 4% 4% 2% USA Saudi Arabia Russia Canada Iran Iraq China UAE Kazakhstan 12% 9% 9% 6% 5% 4% 4% 4% 4% China Russia Australia Canada USA Kazakhstan Mexico Ghana Uzbekistan Sources: 1) World Bank 2) National Bank of Kazakhstan 3) Energy Institute (EI) Statistical Review of World Energy 2025 4) US Geological Survey, Mineral Commodity Summaries, January 2025 5) IMF • Kazakhstan’s infrastructure needs are increasing with its expanding economy, growing role as a regional hub and increasing population • In August 2024, the Kazakh government approved a National Infrastructure Plan until 2029, which includes 204 projects in energy, transport, digital and water infrastructure sectors worth nearly KZT 40t (USD 80b) 4,8% 6,0% 4,2% 1,2% 1,1% 4,1% 4,1% 4,5% -2,5% 4,3% 3,2% 5,1% 4,8% 5,9% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025e
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29 (4) Ferronordic outlets in Kazakhstan as of November 2025 Kazakhstan Network Aschaffenburg Aktobe Karaganda Almaty Astana
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7% Cash flow & capital allocation 30 Working Capital Development Net Debt/(Cash) Development Capital Expenditure Development Note: capex in US includes purchase of machines for rental and rental conversions 1.026 1.068 825 625 523 22% 23% 17% 13% 11% 0% 5% 10% 15% 20% 25% 0 200 400 600 800 1.000 1.200 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 SEKm NWC NWC as % of LTM revenue 1.792 1.978 1.826 1.679 1.641 0 400 800 1.200 1.600 2.000 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 SEKm 549 65 -157 -157 -83 13% 17% 16% -3% 0% -5% -1% 3% 7% 11% 15% 19% -200 0 200 400 600 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 SEKm LTM capex LTM capex as % of LTM revenue
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Financial objectives and dividend policy 31 KPI Objective Revenue Double the 20241 revenue in current markets2 over 5 years (in SEK) Operating margin Above 6% Net debt / EBITDA Below 3 times (over a business cycle) Dividend policy The ambition is to pay at least 50% of net income if net debt/EBITDA is less than 1.0 x3, post dividend payment, and to pay at least 25% if net debt/EBITDA is more than 1.0 x3. The Board will take several factors into account when proposing the level of dividend including legal requirements, the articles of association, the Group’s expansion opportunities, its financial position and other investment needs. 1) Based on 2 x 6M 2024 revenue 2) Current markets are defined as Ferronordic’s current (Q2 2024) sales area in the US, Germany and Kazakhstan. They include expansion to other brands and products and expan sion of our network in and directly adjacent to our current area 3) After and including accounting for paying the dividend
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Third quarter 2025
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Q3 2025: Trending upwards – still a way to go 2 -9% Revenue growth SEK 37m Operating profit 3.5% Operating profit margin SEK -0.87 EPS Group and segment highlights: • Revenue decreased -9% to SEK 1,060m (1,171) or -5% on fixed currency rates 1 • Gross margin increased 3.7pp Y-o-Y and 2.9pp Q-o-Q to 19.1% • SG&A decreased 8% to SEK 167m (181) • Operating profit increased to SEK 37m (2) • Net income excluding currency effect increased to SEK 10m (-39) • Working capital reduced 49% and net finance cost 25% to SEK 29m (39) • Net debt reduced to SEK 1,641m (1,792) and net debt/EBITDA to 3.9x 1 Applying Q3 2024 rates in Q3 2025
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Q3 2025 Group summary financials1 Group revenue at SEK 1,060m (-9%) (-5% on fixed currency rates2) • US revenue -5% to SEK 677m (unchanged in USD) • German revenue -4% to SEK 358m (-1% in EUR) • Kazakhstan revenue -70% to SEK 25m (-64% in KZT) Group operating profit of SEK 37m (2) • US operating profit decreased from SEK 53m to SEK 43m • German operating profit increased from SEK -40m to SEK -1m • Kazakhstan operating profit increased from SEK 3m to SEK 7m Net income improved to SEK -13m (-88) on lower finance costs and despite further foreign exchange losses Net debt decreased to SEK 1,641m • 32% equity to total assets • Book equity of SEK 1,294m as at 30 September 2025 SEK 1,060m (-9%) revenue Operating result of SEK 37m Net income without currency effect of SEK 10m 3 1 Starting from Q1 2025 certain revenue and cost items were reclassified, with some effects on comparable numbers for revenue, gross profit, SG&A and other income. For more details on this effect, please refer to slide 12 in this presentation or to p. 9 of the financial report for Q3 2025 2 Applying Q3 2024 rates in Q3 2025
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Q3 2025 US operational highlights • Customer activity and machine utilization remain high • 15% market increase in our territory during the quarter – mainly driven by competitors filling up fleets – but validating stable demand • Machine sales decreased -16% (-12% in USD), mainly due to lower sales from rental fleet • More newer machines in fleet that have not yet reached the optimal resale point • Rental fleet utilization improved further; rental revenue increased 25% (+32% in USD) • Good position to sell more machines from rental fleet later, supported by recent rate cuts and tax breaks • Service and parts sales decreased -1% (+5% in USD), but increased compared to the previous quarter • Operating profit 62% higher than in previous quarter • Continued work on different initiatives to grow business to full potential • Improving IT solutions to increase efficiency and sales Demand holding up despite continued tariff uncertainty Gross margin recovered to 20.5% Operating result of SEK 43m
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Q3 2025 5 1 ACEA statistics, based on registrations Germany operational highlights • German market increased 10% in the quarter1 • Sales of new trucks in units increased by 30%, but still at low level • Customers postpone replacements but still use their trucks • Truck sales unchanged in SEK (+3% in euro) • Service and parts sales decreased -10% to SEK 151m • We keep hiring technicians, but it takes time to train and ramp up productivity • Gross margin of 15.6% - big improvement Y-o-Y (because of write-downs in Q3 2024) - but also better Q-o-Q • Inventories reduced to SEK 170m from SEK 218m after Q2 2025 and SEK 461m after Q3 2024 • New service organization being rolled out to further empower local management • Aim to make operations more agile, further improve customer satisfaction, and increase sales Market up 10% in quarter despite continuous soft demand New truck sales in units increased 30% Operating result improved to SEK -1m
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Operating result improved to SEK 7m Q3 2025 Kazakhstan operational highlights • Signs of recovering market, particularly in the mining and road construction segments • Equipment sales decreased to SEK 14m (73), but with better margins • Service and parts sales increased22% and made up 46% ofrevenue mix, contributing to high gross margin • Operating profit increased to SEK 7m,positively affected by a reversal of provision for doubtful debt ofSEK 3m • Inventories reduced toSEK 63m from SEK 68m afterQ2 2025 and SEK 130m after Q3 2024 • Former Group HR Director,Nadia Semiletova, appointed President of Ferronordic Kazakhstan • Expansion and improvement of sales team • Improvement of IT solutions to benefit fromprogress made in US 6 Signs of recovery, particularly in mining and road construction segments Parts and service sales increased 22% Y-o-Y
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Group EBIT Y-o-Y 65 EBIT Q4 19 EBIT Q4 20 SEKm 7 2 -10 38 4 3 37 -10 0 10 20 30 40 EBIT Q3 2024 US Germany Kazakhstan HQ EBIT Q3 2025
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Group assets by segment 8 Split by main items and segment as at 30.09.2025 * Including deferred tax assets 0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 Real estate Rental fleet Other PP&E Goodwill Inventories Trade and other receivables Cash & equivalents Other assets* US Germany Kazakhstan Group
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Group liabilities by segment 9 Split by main items and segment as at 30.09.2025 * Including deferred tax liabilities SEK 1,294m SEK 89/share 0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 Trade and other payables Bank loans VFS floor plan Lease liabilities Other liabilities* NAV US Germany Kazakhstan Group
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10 Q3 2025 Income statement • Revenue down 9% to SEK 1,060m o 64% US, 34% Germany and 2% Kazakhstan o 49% equipment and trucks, 41% parts and service, and 9% rental • Gross profit up 12% • Gross margin increased to 19.1%, up 3.7pp Y-o-Y (lower in US compensated by higher in Germany and Kazakhstan) and 2.9pp Q-o-Q (with higher margin in all segments) • SG&A decreased -8% to SEK 167m • SG&A as % of revenue increased to 15.7% (15.5%) • Operating margin increased to 3.5% (0.1%) • Operating profit at SEK 37m (2), mainly on higher German contribution • Net income of SEK -13m on lower financing cost but foreign exchange losses of SEK 22m SEK M Q3 2024 Q3 2024 Q3 2024 Q3 2024 Q3 2025 Q3 2025 3 2025 Q3 2025 % change Kazakhstan Germany US2 Group Kazakhstan Germany US Group Group FX (SEK/KZT, EUR/SEK, USD/SEK) 43.72 11.41 10.50 52.39 11.10 9.96 New units sold 21 96 61 178 6 125 36 167 -6% Revenue 82 372 716 1,171 25 358 677 1,060 -9% Gross profit 9 14 159 181 8 56 139 203 12% % Margin 10.4% 3.7% 22.2% 15.5% 33.3% 15.6% 20.5% 19.1% 3.7pp Operating profit1 3 -40 53 2 7 -1 43 37 2104% % Margin 3.1% -10.7% 7.4% 0.1% 27.8% -0.4% 6.3% 3.5% 3.4 pp Net result for the period -88 -13 -86% EPS -6.07 -0.87 -86% EBITDA1 4 -18 131 103 8 20 136 153 49% 1 Group operating profit and EBITDA include Group costs not allocated on the reporting segments 2 In Q3 2025 certain revenue and cost items have been reclassified, with some effects on comparable numbers in Q3 2024 for reve nue, gross profit, SG&A and other income. For more details on this effect, please refer to slide 12 in this presentation or the note on p. 9 of the financial r eport for Q3 2025. In Q3 2024, Ferronordic recognized an impairment on inventory in Germany of SEK 31m, which affects the Y-o-Y gross profit comparison
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Q3 2025 Balance sheet • PP&E increased Y-o-Y despite FX, mainly due to increase of addition of rental fleet in the US and e-rental fleet in Germany • In US, net working capital decreased Q-o-Q from 14% to 12% of LTM revenue as inventory and receivables declined more than payables • In Germany, net working capital decreased Q-o-Q from 9% to 6% of LTM revenue, mainly on lower inventory and receivables (partly because of receipt of subsidies for electric trucks) • In Kazakhstan, net working capital decreased in SEK but increased from 43% to 68% of LTM revenue Q-o-Q (on lower LTM revenue) • Net debt decreased SEK 38m Q-o-Q to SEK 1,641m • Equity / assets increased Q-o-Q to 32% 11 SEK M Q3 2024 Q2 2025 US Q3 2025 Q3 2025 FX EUR/SEK FX USD/SEK FX SEK/KZT 11.30 10.09 47.37 11.15 9.51 54.94 9.42 11.06 9.42 58.31 Property, plant and equipment 2,165 2,254 1,697 2,312 Cash and cash equivalents 360 185 28 163 Debt 2,079 1,811 1,871 1,756 Finance Leases 74 53 15 48 Net debt / (cash) 1,792 1,679 1,858 1,641 Working capital 1,026 625 358 523 % of Revenue 22% 12% 12% 10% Shareholders equity 1,483 1,302 99 1,294 Total Assets 4,760 4,183 2,704 4,017 Equity / Assets 31% 31% 4% 32%
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Changes in presentation of US segment 65 EBIT Q4 19 EBIT Q4 20 12 • In 2025, certain revenue and cost items in the income statement for the US segment have been reclassified to align the presentation of the US segment to Group reporting guidelines • The table shows the Q3 2024 income statement as reported in November 2024 and after the change in presentation and also the difference in column Q3 ADJ. • The reclassifications affect revenue, gross profit, gross margin, SG&A, other income and operating margin but has no effect on the operating profit Q3 Q3 Q3 Q3 Y-o-Y Y-o-Y SEK m 2025 2024 ADJ 2024 ADJ reported adjusted Revenue 677 686 30 716 -1% -5% Equipment and truck sales 288 336 9 345 -14% -16% Service and parts sales 290 272 20 293 7% -1% Other revenue 99 78 1 79 26% 25% Cost of sales -538 -504 -53 -558 7% -3% Gross profit 139 182 -23 159 -24% -12% Selling expenses -29 -21 -9 -30 43% -1% General and administrative expenses -67 -89 14 -75 -25% -11% Other income 1 -18 18 - Other expenses -1 -1 - -1 Operating profit 43 53 - 53 -20% -20% Gross margin 20.5% 26.5% 22.2% Operating margin 6.3% 7.7% 7.4%
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Financial objectives and dividend policy KPI Objective Q3 2025 LTM Revenue Double 20241 revenue in current markets over 5 years (in SEK) 1.00x 2 x 6M 2024 revenue Operating margin Above 6% 1.0% Net debt / EBITDA Below 3 x (over a business cycle) 3.9 x Dividend policy The ambition is to pay at least 50% of net income if net debt/EBITDA is less than 1.0 x2, post dividend payment, and to pay at least 25% if net debt/EBITDA is more than 1.0 x2. The Board will take several factors into account when proposing the level of dividend including legal requirements, the articles of association, the Group’s expansion opportunities, its financial position and other investment needs. 13 1) Based on 2x 6M 2024 revenue. Current markets are defined as Ferronordic’s current (Q2 2024) sales area in the US, Germany and Kazakhstan. They include expansion to other brands and products and expansion of our network in and directly adjacent to our current area 2) After and including accounting for paying the dividend
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Outlook 14 We remain optimistic about the US and the opportunities there. We expect activity in the infrastructure sector to remain high as the need to maintain and develop roads and other infrastructure is substantial, and infrastructure spending remains at a high level. Additionally, we anticipate increased activity related to data centers, semiconductor factories and other infrastructure linked to the tech industry. We see opportunities to further develop and expand operations in the US. In Germany, demand for trucks remains weak, while demand for service and parts is relatively high. As customers continue to use their trucks but postpone fleet replacements, there is growing pent-up demand. When the market begins to recover, demand for both trucks and service should increase. We must have sufficient capacity in our workshops to meet this demand. We now have a lower cost base in Germany but still maintain an organization that can handle larger volumes. Overall, we remain optimistic about the potential of our operations in Germany. In Kazakhstan, we also see signs of recovery, especially in mining and road construction. With new management in place, we see good opportunities to increase both sales and profitability going forward.