Slides
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Ferronordic 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 effects increased to SEK 10m (-39) • Working capital reduced 49% and net finance costs decreased 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 Trending upwards – still a way to go • Performance improving in allmarkets • In the US, we saw stable dollar sales and recovering margins • In Germany, we sawhigher gross profit, lower SG&A and operating result close to break-even • With lower cost base and a team ready to handlelarger volumes, we are in a good position when the market recovers • In Kazakhstan, sales were modest, but margins good • We reduced costs and optimized working capital further across the Group • We tie up less capital and have lowered our finance costs • Net debt in relation to EBITDA at the end of the quarterdecreased to 3.9x, higher than our target, but a clear improvement Higher gross profit and lower SG&A in Germany Net debt to EBITDA decreased to 3.9x 3 Stable dollar sales and recovering margins in US
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Q3 2025 Group summaryfinancials1 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 4 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 10 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 6 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 8 Signs of recovery, particularly in mining and road construction segments Parts and service sales increased 22% Y-o-Y
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13 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 MM 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 profit 1 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 includes 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 revenue, gross profit, SG&A and other income. For more details on this effect, please refer to slide 10 in this presentation or the note on p. 9 of the f inancial report 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% 9 SEK MM 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 10 • 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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Group EBIT Y-o-Y 65 EBIT Q4 19 EBIT Q4 20 SEKm 11 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 EBIT Q-o-Q 65 EBIT Q4 19 EBIT Q4 20 SEKm 12 -5 16 11 8 7 37 -10 0 10 20 30 40 EBIT Q2 2025 US Germany Kazakhstan HQ EBIT Q3 2025
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Group assets by segment 13 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 14 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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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. 15 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 20 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.
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Thank you