Annual report
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Annual and Sustainability Report 2025 Full power installations from a powerful team
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• The sustainability report reviewed by the auditors covers pages 52–99. The sustainability report forms part of the Directors' Report. • The Board of Directors and the CEO of Instalco AB (publ), organisation number 559015-8944, hereby present the annual report for the 2025 financial year for the Parent Company and the Group, which consists of the Directors' Report on pages 5, 13, 17, 19, 28–29, 37–51, 52–99, 141–142 and the financial statements along with notes and comments on pages 100–129. The Corporate Governance Report, which has been reviewed by the auditors, can be found on pages 37–44. • Instalco’s annual and sustainability report is pub- lished in both Swedish and English. The Swedish version is the original version. This annual report is also available in Swedish as a downloadable PDF on the company’s website, www.instalco.se Table of Contents DIRECTORS' REPORT Introduction This is Instalco 3 The year in brief 5 CEO comments 6 Investment case 8 Strategy 9 Market 10 Market trends 11 Strategic targets 13 Business model and value creation 14 Strategic focus areas 15 Acquisitions 17 Start-ups 19 Instalco’s sustainability work 22 Operations 27 Business description 28 Segments 31 Sweden 32 Rest of Nordics 33 Corporate Governance 35 Comment from the Chairman 36 Corporate Governance Report 37 Board of Directors 43 Management 44 Guidelines for remuneration 45 Other information 47 Risks 48 Sustainability Statement 52 Table of Contents 53 General disclosures 54 Environmental responsibility 64 EU Taxonomy 72 Social responsibility 74 Business conduct 87 Appendix 92 Financial information 100 The Group’s financial statements 101 The Parent Company’s financial statements 105 Notes 109 Approval of the financial statements 129 Auditor’s report 130 Auditor's report on the sustainability statement 133 Other information 135 Five-year overview 136 Definitions 139 The share 141 Subsidiaries 143 Cases From apprentice to project manager 16 Intec – five years after the start 20 Increased demand in energy & environment 26 Eight Instalco companies in collaboration 30 Focus on small projects 34 Contents Introduction This is Instalco The year in brief CEO comments Investment case Strategy Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 2Introduction
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Instalco is a leading Group in the installation industry in Northern Europe. For over a decade, Instalco has developed and delivered sustain - able and energy-efficient solutions in the areas of electrical, heating & plumbing, ventilation, industry and Tech & Consulting, with the goal of contributing to a more resource-efficient society. Today, the Group consists of over 150 subsidiaries that together constitute a strong and growing platform for long- term value creation. A decentralised business model com- bines local entrepreneurship with the Group’s resources, competence and scalable processes – which creates effi- ciency, coordination advantages and stable profitability. Through the Group’s subsidiaries, Instalco offers design, tech- nical installations, maintenance and service that contribute to reduced energy and resource consumption in buildings and facilities. The broad competence within the Group enables multidisciplinary collaboration and comprehensive solutions with clear synergy effects. This is Instalco 13,598 SEK m net sales 150+ Companies 4 Countries 6,000+ Employees Vision We enable our companies, employees and customers to grow by collaborating on installations for the transition to a green society for the next generation. We are the most competent and efficient partner for our customers. The Instalco Spirit Through courage, entrepreneurship, best practice and mature leadership, we harness the power in each other. We are down-to-earth, show great commit- ment, ensure an open atmosphere and create a sense of well-being. When everyone truly wants to develop and cooperate, we are the best in the industry. Then we succeed, together! Business concept Instalco offers complete technical solutions in elec- trical, heating & plumbing, ventilation, industry, and Tech & Consulting for the Northern European market. We work closely with customers, combining all the advantages of a local company with efficient collabo- ration and mature leadership. INDUSTRY VENTILATION HEATING & PLUMBING ELECTRICAL TECH & CONSULTING Contents Introduction » This is Instalco The year in brief CEO comments Investment case Strategy Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 3Introduction
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209 billion SEK Size of Instalco’s core markets (Sweden, Norway, Finland, turnover 2025) 6.5 percent Instalco’s market share¹ 1) Source: Navet Analytics A Nordic Group with a large customer base Instalco's subsidiaries operate in Northern Europe and serve a large number of customer groups within the construction industry, the real estate sector, industry and the public sector. The segment structure during 2025 consisted of Sweden and Rest of Nordics. Sales per segment Sweden, 71% Rest of Nordics, 29% Sales per customer group Construction companies, 48% Industrial companies, 20% Public sector, 9% Property companies, 8% Other, 15% EBITA per segment Sweden, 69% Rest of Nordics, 31% Sales per discipline Electrical, 33% Heating & plumbing, 28% Ventilation, 15% Industry, 19% Tech & Consulting, 5% Sales by form of compensation Fixed-price projects, 43% Cost-plus and other forms of remuneration, 57% Sales per project type New production, 30% Renovation, 33% Service, 37% LARGEST CUSTOMERS 2025 • NCC • Skanska • Peab • Boliden • Byggpartner i Dalarna Sales per end market Industrial properties, 21% Schools & hospitals, 16% Office, 12% Logistics/warehousing, 2% Commercial properties, 14% Residential renovation, 8% Residential new construction, 7% Energy production, 4% Data centres, 1% Other, 15% Contents Introduction » This is Instalco The year in brief CEO comments Investment case Strategy Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 4Introduction
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9,510 5.9% 108% 1 4 37% Order backlog, SEK m EBITA margin Cash conversion Number of acquisitions Number of new start-ups Service, share of revenue Significant events during the year: Organisation • Robin Boheman leaves his position as President and CEO of Instalco. Per Sjöstrand is appointed CEO. • A new national organisation with the units Sweden, Norway, Finland and Tech & Consulting was established as part of the introduction of the Group’s new improvement programme, Instalco 2.0. • The technical consulting company Intec celebrates 5 years. Acquisitions, start-ups and financing • Instalco acquires a minority stake in the German installation group Fabri AG. • Instalco extends its credit facility agree- ment for a total of SEK 3.4 billion, which ensures continued financial strength and flexibility. • Instalco issues 4.6 million new shares in connection with the investment in Fabri AG. • Instalco acquires Alf Näslunds Eltjänst in Örnsköldsvik, a strategic acquisition to become multidisciplinary in the region. • Establishment within energy storage and microgrids in Finland through the start-up of the subsidiary Enervion. Projects and other news • Five Instalco companies sign a contract for a joint assignment during the con- struction of the Swedish Prison and Probation Service’s facility in Västerås. • The Instalco company Lysteknikk has been awarded the electrical contract for the construction of New Aker Hospital in Oslo. • Instalco receives Miljøfyrtårn certification in Norway. During 2025, Instalco has navigated a continuously challenging market. During the second half of the year, extensive development work was initiated to increase efficiency, profitability, and delivery capacity. The new working method within the Group goes by the name Instalco 2.0, which, among other things, involved the introduction of a new country-based organisation. At the core lies Instalco’s decentralised busi - ness model, which has continued to prove itself competitive and resilient. KPI¹ SEK m 2025 2024 Change, % Net sales 13,598 13,690 –1 EBITA 800 879 –9 EBITA margin, % 5.9 6.4 Operating profit (EBIT) 668 690 –3 Operating margin (EBIT), % 4.9 5.0 Earnings before taxes 523 486 8 Cash flow from operations 1,010 946 7 Order backlog 9,510 9,002 6 Basic earnings per share, SEK 1.28 1.31 –2 Diluted earnings per share, SEK 1.28 1.31 –2 Dividend per share, SEK 0.50² 0.68 –26 1) For additional KPIs and fiscal years, see the five-year summary on pages 136–138. 2) The Board’s proposal to the 2026 Annual General Meeting. The year in brief Contents Introduction This is Instalco » The year in brief CEO comments Investment case Strategy Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 5Directors' report – Introduction
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We are currently living in a rapidly changing world with macroeconomic and global factors that are difficult to predict. Our way of dealing with this is to take full responsibility for what we ourselves can influence. Instalco 2.0 for strengthened competitiveness and higher profitability During parts of 2025, Instalco’s earnings did not live up to our own expectations. This became a clear signal that we needed to increase the pace, sharpen priorities and strengthen delivery capacity through- out the entire organisation. For us, it was not a matter of waiting for an improved market situation, but of taking full responsibility for the parts of the business we can actually influence. Instalco 2.0 During the year, we have therefore sharpened our priorities and strengthened leadership in implementation. The focus has been on clearer responsibility, better follow-up and a more proactive way of working throughout the entire Group. Through Instalco 2.0, we have intensified our efforts and raised the requirements for implementa- tion, focusing on actions that have had an actual effect. An important first step in this work was to introduce a country-based organisation that gives us a clearer structure and better conditions to reach and maintain our margin target over time. Our stated goal and primary priority is an EBITA margin of at least 8 percent. Getting back there is not about a new model, but about refining the one we already have, with greater discipline in planning, risk control and clearer accountability at all levels. Instalco 2.0 is a further development of our decentralised and suc- cessful model, where local leadership, strong ownership and proac- tive capabilities close to the customer continue to form the basis of the business. The starting point is to retain and develop what has historically been successful: entrepreneurship, local business and fast decisions. Decentralisation with the subsidiaries at the centre remains the foun- dation. Freedom with responsibility is a core principle, but with clearer expectations and sharper follow-up. We are even closer to the subsid- iaries, through more support, closer dialogue and increased exchange of experience while requirements for implementation have been raised. When responsibility is taken for both the individual com pany and for the whole, true collective strength is created. In this way, we can become more efficient, more profitable and even stronger locally. Same business model and strategy, with a stronger financial foundation Instalco’s business model remains firm: to acquire and develop the best entrepreneur-led companies through collaboration, knowledge sharing and best practice. Growth occurs selectively and with a clear focus on long-term profitability. In parallel with the operational improvement work within Instalco 2.0, the focus during the year has been on strengthening the Group’s financial position. Lower indebtedness, improved working capital and a clear focus on cash flow have been prioritised throughout the organisation. The discipline we have introduced is beginning to take effect and has strengthened our financial freedom of action. A stronger financial foundation is crucial, both to be able to handle uncertainty in the outside world and to eventually resume an active and value-creating acquisition agenda. At the same time, we still see potential for further improvements before we increase the pace of "Instalco 2.0 is a further development of our decentralised and successful model, where local leadership, strong ownership and proac- tive capabilities close to the customer continue to form the basis of the business" Contents Introduction This is Instalco The year in brief » CEO comments Investment case Strategy Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 6Introduction
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investment. Capital shall be used strategically, with a clear focus on profitability and margin-enhancing effects. A good example of this is Germany, where we continue to grow through our platform Fabri. I am pleased to see how Fabri is develop- ing and how they are making strategic company acquisitions to grow in one of Europe’s largest installation markets. Improved risk management Recent years have highlighted the importance of a more structured risk analysis, not least against the background of bankruptcies in the construction industry that have also affected Instalco. Within Instalco 2.0, we are therefore working more systematically with project selec- tion and risk assessment. The goal is to reduce exposure to unwanted risk and create more stable profitability over time. The work with Instalco 2.0 includes the importance of choosing the right projects and making the right calculations. Instalco’s strategy has since the start been to focus on the market’s so-called mid-market segment with projects in the size range of SEK 1 million to SEK 75 mil- lion. This is where we possess the greatest knowledge, have the least risk and the greatest opportunities. With Instalco’s collective expertise, we also see the opportunity to take a comprehensive approach within larger projects. Together with the large construction companies, we are conducting interesting dialogues regarding several larger projects. But with that said, I want to emphasise that it is the smaller everyday projects that are the foundation of Instalco. And so it shall remain. Leadership in focus On 1 August 2025, I once again assumed the role of CEO of Instalco. The decision was made at a stage where the Board assessed that the company needed new leadership in a continually challenging market. I appreciate Robin Boheman’s committed work as CEO for four years and I am of the opinion that this lays a good foundation for the future of Instalco. My mission as CEO is clear: to ensure, together with man- agement, that the Group’s strategy Instalco 2.0 is put into practice, that profitability is strengthened and that our entrepreneur-driven way of working continues to develop. In line with this, I have scaled back my other commitments to ensure I can devote additional time and my full attention to the role of CEO at Instalco. I thank the Board for their confidence in me to lead Instalco forward into this next phase. Sustainable development drives both us and the market There is a strong underlying demand for installation and service solutions in energy and resource efficiency. With climate-smart installations, we offer customers technical solutions that contribute to reduced energy consumption and more efficient resource use. We are also working actively to reduce our own environmental footprint and in this annual and sustainability report, we are present- ing for the first time a complete sustainability report, according to CSRD and ESRS, which provides a comprehensive picture of our work regarding climate, governance, and social responsibility. Instalco’s climate targets are net-zero emissions across the entire value chain by 2045 at the latest and a reduction in the GHG intensity in Scope 1 and 2 by 50 percent by 2030, with 2020 as the base year. Sustainability is not only about reducing environmental impact. We also take active responsibility for continuously developing our cor- porate governance and social responsibility, and maintaining a safe working environment. This includes our internal programmes, such as the Instalco Academy, the Instalco Club, and Safe Employee, as well as the extensive work we have done during the year in governance and internal control in the company. I am also proud of the Group’s consistently good results in employee satisfaction, with an eNPS of 31, reflecting commitment and pride even in times of change. See our sustainability report for a complete disclosure of ESG data. Work is now underway to take Instalco into the next phase. We are far from finished, but we are on the right track. Instalco 2.0 is our long-term and joint development work to strengthen competi- tiveness, profitability, and delivery capacity in a more complex and changing market. Finally, I would like to thank all employees, customers, suppliers, shareholders, and other partners for our successful collaboration, and I look forward to further strengthening these relationships in the future. Per Sjöstrand, President and CEO Contents Introduction This is Instalco The year in brief » CEO comments Investment case Strategy Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 7Introduction
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Instalco’s subsidiaries have a leading position in local markets in electrical, plumbing, ventilation, industrial and Tech & Consulting. With a focus on mid-size projects for a stable and diversified customer base, Instalco is meeting growing demand driven by the green transition, digitalisation, housing shortages and an ageing property stock. Instalco’s sustainable and technical solutions contribute to lower energy consumption, reduced emissions and improved resource efficiency in buildings and industries. New EU regulations, such as the Taxonomy, EPBD and CSRD, have increased the market’s interest in and focus on sustainability matters and are driving demand for installation services. In our decentralised model, the sub- sidiaries keep their identity and local customer relations, with full respon- sibility for results and professional development. Simultaneously, the Group’s framework and collaboration provide the opportunity to take on larger and more complex deals. This strengthens both competitiveness and the ability to deliver high quality and profitability. Instalco has more than ten years of documented experience in value-cre- ating acquisitions and founding new companies with short time to profita- bility. The Nordic and German instal- lation markets remain fragmented, which provides good opportunities for continued expansion. Instalco delivers quality in its growth with good profitability and strong cash flow. This enables both attractive acquisitions and a stable dividend profile. Over the past five years, Instalco has had average growth of about 15 percent per year, correspond- ing to a CAGR of 11 percent, despite a weaker market in recent years. During the same period, the EBITA margin averaged 7.2 percent and the cash conversion rate averaged 91 percent. Attractive and diversified positioning in a growing market A sustainable offering that is right on time A business model that combines entre - preneurship with the Group’s strength Proven growth through acquisitions and founding profita - ble start-ups Strong growth with good profitability 0 5 10 15 20 25 30 20252024202320222021 0 3,000 6,000 9,000 12,000 15,000 20252024202320222021 SEK New build, 30% Renovation, 33% Service, 37% Electrical, 33% Heating & plumbing, 28% Industry, 19% Ventilation, 15% Tech & Consulting, 5% Sales per project type Sales per business area Local proximity with big business opportunities Number of acquisitions and start-ups Growth over 5 years Local entities Cooperation Central organisa tion Investing in Instalco means that you as an investor share our belief in the green transition that is central to Instalco’s business model as we reinstall for a sustainable world for the next generation. Five reasons to invest in Instalco Number of acquisitions Number of start-ups Net sales EBITA 2. 3. 4. 5.1. Contents Introduction This is Instalco The year in brief CEO comments » Investment case Strategy Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 8Introduction
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Strategy Contents Introduction Strategy Market Market trends Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany Start-ups Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information
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Instalco operates in the technical installation and service market in Sweden, Norway, Finland and, for approxi - mately one year, also in Germany. The majority of operations are based in Sweden. Market The installation and service market in the Nordics is characterised by strong local roots, a wide range of technical disciplines, and clear regional differences in activity levels. The market is driven by both new build and renovation, where service and maintenance create a stable foundation even when project cycles vary. Political decisions, interest rates, and the economic climate affect the rate of investment and pricing, particularly in larger projects. Pub- lic investments in schools, healthcare, prisons, police, and defence account for an important and long-term part of demand. At the same time, the modernisation of properties and technical development have made installations an increasingly central part of the construc- tion process and the long-term sustainability of properties. Structural market development Over time, the installation market has grown faster than the construc- tion market as a whole. Today, an increasing share of the total value of building projects consists of technical installations, as a result of stricter regulatory requirements, higher energy efficiency standards, and increased technical complexity in properties. At the same time, service, maintenance, and modernisation of the existing property stock create stable demand independent of the rate of new construc- tion. This means that the installation market is structurally less vol- atile than, albeit not entirely decoupled from, the total construction market and is to a higher degree driven by long-term societal needs. Market size and segmentation The total installation market in Sweden, Norway and Finland is esti- mated to amount to approximately SEK 209 billion for 2025, where Instalco’s market share amounted to approximately 6.5 percent. The market remains fragmented and consists of a mix of large Nordic groups as well as many smaller local entrepreneurs. In addition to installation, Instalco’s subsidiaries offer technical consulting services. Beyond the Nordic market, Instalco has established itself in Germany via the investment and minority holding in Fabri AG. The German installation market is many times larger than the Nordic markets combined and offers significant growth potential. Instalco divides the installation market into three main project seg- ments based on order value: • below SEK 1 million, • between SEK 1 million and SEK 75 million, • above SEK 75 million. Instalco focuses primarily on the mid-market segment, which offers an attractive balance between project size, risk and profitability. Market development 2025 The underlying demand for energy-efficient and resource-saving installation services remained good during 2025. At the same time, the market was characterised by varying activity levels in the Nordics as a result of the economic slowdown. Competition for projects was high, especially in larger assignments, while service and maintenance contributed to a stable base. The weak situation in residential new construction affected the industry, but this segment constituted only a limited part of Instalco’s operations. Material prices remained at a high level, although cost increases slowed down. Lower interest rates and a gradually improved investment appetite meant that the project supply increased during the year and created better conditions for selectivity and focus on profitability. Contents Introduction Strategy » Market Market trends Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany Start-ups Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 10Strategy
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Green transition and energy efficiency General trends High energy prices, stricter climate requirements and increased envi- ronmental awareness among both companies and society contrib- ute to a growing demand for sustainable installations. This transition drives investments in energy-efficient technology at the same rate as EU requirements, such as the Taxonomy, EPBD and CSRD, increase. Property owners of both newly built and existing properties are increasingly focused on investing in energy-efficient installations to lower energy costs for the property, meet the increasingly high demands of the market and end-users regarding energy efficiency and sustainability, and to meet future legal requirements. This devel- opment benefits actors with climate-smart solutions and products that live up to higher requirements from a sustainability perspective. How Instalco acts Instalco supports the green transition by offering, designing and installing solutions that improve energy efficiency in buildings and reduce the climate footprint. The companies in the Group work closely with customers to identify energy-saving solutions and implement modern and sustainable technology in both new and existing installations. Increased collaboration and knowledge sharing between the companies within the Group continuously contribute to Instalco’s innovative power and ability to quickly adapt to new regulations and markets. Instalco is well positioned to lead the development towards a more resource-efficient society in Northern Europe. Digitalisation and increased building complexity General trends Digitalisation and automation are making buildings and instal- lations more technically advanced and increasing the need for integrated systems for energy optimisation, communication, security, and process control. This growing technical complexity is also driving investments in data centres, energy networks, and critical infrastructure. Technical installations are thus playing an increasingly central role in the construction process and account for a rising portion of construction costs. How Instalco acts The increasing technical complexity favours actors with broad and multidisciplinary competence, an area where Instalco has a clear strength. The Group has extensive experience in coordinating pro- jects across technical areas such as electrical, heating & plumbing, ventilation, industry, and technical consulting, which creates effec- tive and comprehensive solutions for customers. To meet the digitalisation trend, Instalco invests in professional development and collaborations with innovative suppliers. The automation business area is designed to coordinate and optimise installations through digitalisation. Increased complexity in buildings leads to greater maintenance needs, which many of the Group's sub- sidiaries meet through new or expanded service departments. Within Instalco's technical consulting operations, project planning, execu- tion, and service are integrated, ensuring high and long-term quality. Long-term market trends and drivers Contents Introduction Strategy Market » Market trends Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany Start-ups Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 11Strategy
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Ageing property stock and expansion General trends Large parts of the Nordic property stock were built during the 1960s and 70s and are now facing an extensive need for renova- tion. In Sweden, this particularly applies to housing from the Million Programme, as well as a large number of schools, preschools and care units that need to be modernised to meet today’s require- ments for energy efficiency, indoor environment and accessibility. Within healthcare and social care, large investments in new and modernised facilities are being planned and implemented, driven by an expanding population, a growing elderly demographic and increased demands for equal care throughout the country. In addi- tion, further investments linked to defence and preparedness are being discussed, including in the prison system. How Instalco acts An increased rate of renovation and expansion benefits Instalco, which has specialist expertise in technical installations in hous- ing, public premises and within the industry. Instalco is a leading player that offers competitive comprehensive solutions through the Group’s many subsidiaries. The subsidiaries’ local presence in combination with the Group’s collective expertise makes it possible to effectively meet growing demand with solutions that live up to modern requirements for functionality and durability. Housing shortage and relocation General trends The Nordic population is growing and is increasingly concentrated in cities. Urbanisation contributes to increasing the housing short- age and simultaneously creates a growing need for community properties and workplaces. In the longer term, the recent slowdown in housing construction is expected to exacerbate the imbalance between supply and demand and thus contribute to the need for efficient and resource-saving new construction projects. How Instalco acts Instalco has a strong position in all Nordic growth regions and is also established in growing locations outside the major cities. Through a wide range of services in electrical, heating & plumbing, ventilation, industry, automation and technical consulting, Instalco delivers integrated solutions to construction companies, property owners and the public sector. The combination of local presence and multidisciplinary competence means that Instalco can meet customers’ needs in procurements for new build, renovation and modernisation projects. At the same time, Instalco’s focus on energy efficiency and climate-smart solutions contributes to a sus- tainable and better-functioning society as cities grow. Contents Introduction Strategy Market » Market trends Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany Start-ups Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 12Strategy
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Strategic targets Growth >10% annually over a business cycle EBITA margin >8% Capital structure < 2.5x Cash conversion rate 100% over a rolling 12-month period over a business cycle Dividend Policy 30% of net profit for the year after tax Outcome 2025 -0.7% Sales growth amounted to -0.7 percent, of which -0.3 percent was organic. Over the last five years, the average growth rate is around 15 percent and the CAGR is approximately 11 percent. Outcome 2025 5.9% The EBITA margin amounted to 5.9 percent. Adjusted for non-re- curring costs in the first and second quarters, the adjusted EBITA margin amounted to 6.4 percent. The five-year average adjusted EBITA margin amounts to 7.4 percent. Outcome 2025 2.8x Net debt/EBITDA amounted to 2.8x. Slightly above the target, but with strong positive develop- ment during the final quarter. Outcome 2025 108% The cash conversion rate was 108 percent, a result of a strong focus on working capital during the year. Outcome 2025 39% The dividend is proposed to be 0.50 (0.68) SEK per share, corre- sponding to a payout ratio of 39 (52) percent. Description Demonstrates the company’s ability to increase its market share via an attractive offering to customers utilising its full range of expertise. Description Measures the company’s ability to generate profit so that it can create long-term value for its shareholders, customers, employ- ees and other stakeholders. Description A low net debt/EBITDA demon- strates the ability to make investments largely through own funds. Description Measures the company’s ability to generate cash for making new acquisitions without taking on more debt. Description Demonstrates the company’s ability to generate returns. Climate targets 50% reduction in Scope 1 and Scope 2 greenhouse gas emission intensity by 2030, with 2020 as the base year. Net zero greenhouse gas emissions across the entire value chain by 2045. The targets are in line with the Paris Agreement and the construction sector’s roadmap for fossil-free competitiveness. Outcome 2025 -2% reduction in GHG intensity in Scope 1 and Scope 2 since 2020. The reduction is lower compared to 2024 due to the lowered reduction obligation. Read more: Scope 3 GHG emissions disclosures, see pages 70–71 in the sustainability statement. Description Shows the company’s direct and indirect GHG emissions linked to its operations. Calculated in accordance with the GHG Protocol. 0 10 20 30 40 50 60 20252024202320222021 0 20 40 60 80 100 120 20252024202320222021 0.0 0.5 1.0 1.5 2.0 2.5 3.0 202520242023202220210 1 2 3 4 5 6 7 8 9 10 20252024202320222021 -5 0 5 10 15 20 25 30 35 40 20252024202320222021 Contents Introduction Strategy Market Market trends » Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany Start-ups Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 13Directors' Report – Strategy
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Business model and value creation Instalco has a strong and well-developed resource base that forms the foundation for the Group’s value creation. With over 6,000 employees in over 150 subsidiaries in four countries, Instalco has a broad geographical presence and extensive opportunities for professional development within the Group. Together, the subsidiaries drive the Group’s development forward with sustainable instal- lations as a long-term strategic starting point. The strategic focus on sustainability promotes quality, stability, and customer relationships, as it is often a key issue in both renovation and new construction projects. • 150+ subsidiaries and associated companies in four countries • Five disciplines • 6,000 employees • Specialist expertise in all technology areas • Suppliers delivering sustainable products • Attractive customer offerings • Energy-efficient and sustainable solutions • Professional development for employees • Responsible business methods • Increased resource efficiency and reduced climate footprint • Profitable growth for shareholders Under the core value "Innovative effective coop- eration", the subsidiaries’ operations are linked with the Group’s interests. The local entities play a decisive role in driving Instalco’s business forward through their offering and customer contacts. The decentralised model means that the subsidiaries work closest to the market, creating flexibility to adapt to local conditions, adjust their own opera- tions, and build long-term customer relationships and a strong local presence. The main task of the central organisation is to facilitate the subsidiaries’ operations by taking responsibility for certain administrative tasks, creating opportunities for cooperation within the Group, and creating the conditions for business development. Cooperation is a central part of the Group’s business model and Instalco’s value crea- tion process through the effective distribution of knowledge, resources, and experience. At the same time, it means that individual subsidiaries can participate in and represent the Group in larger procurements. The central organisation ensures the implemen- tation of strategy and consistency by coordinating functions such as purchasing, sustainability, acqui- sitions, finance, business development, as well as communication and IR. Maintaining Instalco’s core values is an important part of the work that creates a clear customer promise of responsibility – a hall- mark of quality for each individual subsidiary. Instalco’s value creation can be summarised in three categories: society, the company, and its owners. Through attractive customer offerings with energy-efficient and sustainable solutions that promote resource efficiency and reduce the climate footprint, the work of the subsidiaries contributes to developing society’s infrastructure and modern housing. Professional develop- ment, access to new markets, and collaboration partners within the Group build stronger com- panies and promote personal development for employees. Finally, as a public company, Instalco creates value for its owners through a long-term sustainable and profitable business, with a focus on stable value growth and dividend over time. Resources Value creationBusiness model INNOVATIVE EFFECTIVE COOPERATION ACQUIRE STRENGTHEN Shared responsibility Local re sponsibility • Customers and sales • Production • Staff responsibilities • Profit responsibility • Multidisciplinary projects and cross-selling • Sharing of best practice • Developing talent • Resource sharing • Purchasing • Strategy and business development • Acquisitions • Finance • Sustainability • Communication and IR Central organisa tion Local entities Cooperation Contents Introduction Strategy Market Market trends Strategic targets » Value creation Strategic focus areas Acquisitions Expansion into Germany Start-ups Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 14Strategy
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Instalco’s strategy is built on the Group’s objective of profitable growth as the common denominator. With profitability as the starting point, Instalco has structured the strategic work around four pillars: committed employees and leadership, customer focus, acquisitions and start-ups, and a sustainable and competitive offering. Strategic focus areas Instalco strives to be an attractive employer with a clear focus on professional and leader- ship development. The decentralised structure is complemented by responsive leadership that promotes engagement, responsibility, and long-term career development. Through the Instalco Academy and other training programmes, the Group ensures that it continuously develops future leaders and strengthens the collective expertise to meet market needs. High customer satisfaction and long-term rela- tionships are the core of Instalco’s profitability focus and form the basis for continued growth. When new companies become part of Instalco, they retain their brands and their local roots, which means that established customer relation- ships can be preserved and developed further. At the same time, the Group creates condi- tions for cooperation between the companies, where larger projects are possible by combining offerings. Collaboration, in other words, enables cross-selling, broader assignments and more comprehensive solutions, and contributes to strengthening both customer value and the Group’s competitiveness. For over a decade, through a determined acqui- sition strategy, Instalco has built a strong market presence and a broad offering in a fragmented installation market. In parallel with this, the Group has established and developed a number of start-ups that complement the existing com- panies and strengthen the overall offering. The objective is for the subsidiaries to remain independent, grow organically and preserve the entrepreneurial spirit that forms the basis of their success. Together, acquisitions, start-ups and local leadership contribute to the Group’s competitiveness, industry-leading profitability and ability to deliver customised solutions throughout Northern Europe. The global transition towards a more sustainable society is changing the conditions within the con- struction and installation sector. Stricter regula- tions such as the EU Taxonomy, EPBD, and CSRD are raising the requirements for energy efficiency, resource use, and environmental impact. This makes sustainability a central competitive factor. For Instalco, this means a constant focus on developing the offering and staying at the fore- front of the technical transition. Through project planning, installation, and service that reduce energy consumption, save resources, and improve environmental performance, the Group contributes to its customers’ climate transition. With extensive experience, deep technical expertise, and a strong sustainability focus, Instalco is today a leading actor in sustainable installations in the Nordics. 1. Employees and leadership 2. Customers 3. Acquisitions and start-ups 4. Sustainable offering Contents Introduction Strategy Market Market trends Strategic targets Value creation » Strategic focus areas Acquisitions Expansion into Germany Start-ups Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 15Strategy
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Case Niklas Bäckdahl credits his professional growth as an electrician to an employer who has al- ways shown him trust and given him the space to evolve. As soon as Niklas had completed his mandatory 1,600 apprentice hours, which took just over a year to accumulate, he was asked if he wanted to manage small-scale projects. "The trust I was given then has been decisive for my development," he says. As a leading actor in the installation industry, Instalco has a great social responsibility. One way to fulfill that responsibility is the appren- tice programme that the Group operates. Working with apprentices is also a way to se- cure the long-term supply of skilled employees. After 27 years at Ohmegi, which has been part of Instalco since 2016, Niklas has gone all the way – from apprentice, to fitter and lead fitter, and finally to project manager. Even as a lead fitter, he received early respons ibility for larger contracts with up to 45 fitters and order values in the SEK 70–80 million range. "Ever since I played hockey and football, I have had leadership roles. In my professional role, I ensure that the fitters enjoy their work and are forged together into a team." Training provides confidence Niklas has been given free rein by Ohmegi’s CEO, Johan Brodin, when it comes to bringing together the teams that will collaborate. "For me, leadership is about building func- tioning teams, creating well-being and making people grow. That’s what drives me and is why I stay with the company." Training is also an important part of the jour- ney. Within Instalco, Niklas has completed several project manager training courses with a focus on practical elements, role-play and the exchange of experience between different companies and disciplines. "In the training courses, participants test different roles and exchange experiences with each other. This provides confidence and good conditions for mature leadership." Niklas feels that he has had a taste of all parts of the industry during his time as an appren- tice and as a project manager. Today, Niklas is responsible for three major projects with durations of up to three years. Workdays start early, often at six o’clock, with planning, schedules, design, orders and coor- dination. This provides the fitters with the right documentation at the right time on-site. Good future prospects in the industry In the future, he would like to have a leading role within Instalco or elsewhere in the indus- try. "It is still technically fun and so many exciting things are happening in the industry. Being involved and helping customers with their various needs is also a driving force. That gives me confirmation that what we do is some- thing they appreciate." When asked what he wants to say to today’s apprentices, the answer is clear: "Show interest, take responsibility, arrive on time and ask if you don’t understand. If you are motivated, you can go very far in this industry." From apprentice to project manager for multi-million projects The apprenticeship system has its roots in the guild system, with a history spanning several centuries. Over the years, the education system has changed but remains in certain craft professions. Today, it is a school-based voca - tional education that combines theory in school with a placement at a workplace. Niklas Bäckdahl at the Instalco company Ohmegi Elektro has gone all the way from apprentice to project manager with responsibility for projects in the multi-million range. Niklas Bäckdahl If you are motivated, you can go very far in this industry Contents Introduction Strategy Market Market trends Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany Start-ups Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 16
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Instalco’s acquisition strategy aims to create long-term value by identifying, acquiring, and develop- ing strategic and profitable quality companies with a strong market position and mature leadership. Acquisitions are most often initiated through the Group’s own network, through recommendations from existing subsidiaries or inquiries from companies and external actors. The strategy is based on a selective approach where the focus is on companies that share Instalco’s values and that can contribute to the Group’s collective expertise, profitability, and market presence. Each acquisition is evaluated carefully to ensure a strategic fit with the Group’s culture and decen- tralised model. Within Instalco, subsidiaries retain their brands, customer relationships, and oper- ational responsibilities, which creates continuity and entrepreneurial power. At the same time, the acquired companies are offered central support in areas such as purchasing, communication, and business development. Through this combination of local independence and central support, Instalco creates the conditions for growth, improved profitability, and long-term value development. Alf Näslunds Eltjänst AB was founded in 1995 and has been owned and operated since 2010 by CEO Anders Näslund. The company has approximately 30 employees and an annual turnover of approximately SEK 55 million. Operations include all types of electrical in- stal lations for companies, the public sector and industry. Acquisitions completed during 2025 Entry date Acquisition Discipline Share of votes and shares Net sales, SEK m¹ Number of employees Sweden March 2025 Alf Näslunds Eltjänst AB Electrical 100% 55 30 Total 55 30 On 13 November 2024, Instalco announced that the company had entered into an agreement for a 24 percent minority investment in Fabri Gruppe (Fabri AG), a German acquisition-driven installation group, with a long-term plan to achieve majority ownership. The first investment was completed in March 2025. 1) Refers to estimated annual sales at the time of acquisition, based on the most recent financial year that has been subject to an audit. The associated company Fabri’s acquisitions in 2025 Entry date Acquisitions Discipline Share of votes and shares Region Germany July 2025 Lumitronic GmbH Heating 100% Kempen-Tönisberg July 2025 Henrich Elektroanlagen GmbH & Co. KG Electrical 100% Groß-Zimmern August 2025 Franz Both GmbH Heating & plumbing 100% Neuwied October 2025 Geuppert Elektrotech- nik GmbH & Co. KG Electrical 100% Hofheim in Unterfranken October 2025 Adolf Kindler GmbH Heating & plumbing 100% Gärtringen October 2025 I&H Elektrotechnik Meisterbetrieb GmbH Electrical 100% Wermelskirchen December 2025 Elektro Henseler GmbH Electrical 100% Swisttal December 2025 Thiele Heizung und Sanitär GmbH & Co. KG Heating & plumbing 100% Gießen Total turnover, acquired companies EUR 42.3 million Total number of employees, acquired companies 242 Acquisitions Contents Introduction Strategy Market Market trends Strategic targets Value creation Strategic focus areas » Acquisitions Expansion into Germany Start-ups Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 17Directors' Report – Strategy
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Strategic establishment in Germany In November 2024, Instalco took an important step in its international expansion through the initial investment in the German installation group Fabri AG, which was completed in March 2025. The investment marks the start of Instalco’s establishment in Germany. It is one of Europe’s largest installation markets, about five times larger than the combined Nordic market, and it has significant growth potential. The German market is characterised by an ageing property stock with a great need for renovation and energy efficiency. At the same time, the country shares many cultural and business similarities with Instalco’s home markets, which creates favourable conditions for a successful establishment. Instalco has a well-established and standardised acquisition process that creates security for both existing and new companies in the Group. Joining companies must fit in strategically, have a strong mar- ket position, high customer satisfaction and a strong financial posi- tion – but above all, share Instalco’s values and entrepreneurial spirit. Fabri fulfils all these criteria and fits well into Instalco’s strategic vision. Through Fabri, the Group gains a unique opportunity and a strong platform for continued growth in Germany, built on local expertise and shared values. Fabri, based in Nuremberg, is a fast-growing installation group that since its start in 2020 has established itself as a significant player on the German market. The group currently comprises 22 subsidiaries with around 750 employees and an annual turnover of approximately EUR 115 million, pro forma. Operations are based on a decentralised model, where each com- pany has specialist expertise in electrical, heating & plumbing, venti- lation and related technical areas. Through its network, Fabri delivers technical building installations, service and maintenance across large parts of Germany – with a strong and loyal customer base in the construction and property sector. With Fabri as a base, Instalco has now established a long-term presence on the German market – with the goal of gradually building a strong and sustainable platform for continued expansion in Central Europe. About the acquisition process The transaction structure ensures a successful establish- ment in Germany, where Instalco, in partnership with founders and entrepreneurs, shares the upside and risk. The investment in Fabri AG refers to an acquisition of the entire German Group, but will take place in four stages: In step two, Instalco will acquire an additional 27 percent of the shares in Fabri and in step three an additional 17 percent from the current owners. The implementation of these steps is conditional upon agreed threshold values for Fabri's profit. Through the second step, majority ownership in Fabri is achieved and thereby Fabri is included in Instalco's consolidated financial statements, which based on current assessments is expected to become relevant during the second half of 2026. 2. The third step, in which Instalco acquires a further 17 percent, is expected to be completed in 2029 at the earliest. The purchase price for the second and third steps is to be paid in cash and is within the Group’s current investment strategy and investment activity. 3. The fourth and final step consists of options to acquire the remaining shares from Fabri’s current owners during the period 2030 to 2033 inclusive. 4. Through a capital contribution, Instalco acquired a minority stake, corresponding to 24 percent of the shares, in Fabri in March 2025. The consideration in the first step amounted to approximately EUR 15 million, of which approximately EUR 13 million was paid with newly issued Instalco shares and approximately EUR 2 million was paid in cash. 1. Contents Introduction Strategy Market Market trends Strategic targets Value creation Strategic focus areas Acquisitions » Expansion into Germany Start-ups Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 18Strategy
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Start-ups Instalco uses a proprietary start-up model as a strategic complement to acquisition-based growth. By partnering with local entrepreneurs and leveraging their industry expertise, new companies are established to meet specific market needs and exploit untapped potential. The model is a central part of Instalco’s long-term strategy to strengthen its presence in geographic and technical areas with high growth potential. The newly started companies gain access to the Group’s resources: from financing and operational support to communication and joint purchasing agreements. Altogether, this provides a solid foundation for rapid and profitable establishment. To maximise value creation, close collaboration between start-ups and existing Instalco companies is encouraged. Through joint projects, cross-selling and knowledge exchange, synergies are created that strengthen both the new companies and the Group as a whole. Like other operations within Instalco, the start-up model is based on a decentralised structure, where entrepreneurship and local roots are combined with access to the Group’s collective exper- tise, experience and financial strength. Inmatiq AB offers technical automation solutions within properties and industry. The company focuses on energy efficiency and technical automation solutions. The offering includes, among other things, project plan- ning, project management, inspection activi- ties, and digitalisation services. The company works with both contracting and system integration as well as service. Intec AB is an engineering and technical consultancy within project management, electrical, ventilation, heating & plumbing, control technology, energy, industry and fire protection. The core business is project plan- ning and project management. The company also performs other services such as inspec- tion, installation coordination, environmental coordination, risk management, calculation and investigation. Enervion Oy specialises in the implementation of projects involving energy storage, energy management and microgrids. The company carries out projects in collaboration with other Instalco companies and industry experts. Enervion can act as a main contractor or offer flexible sub-projects and technical expertise for projects related to energy storage and future power grids. Instalco has carried out the following start-ups during the period January – December 2025 Start-up Discipline Segment Inmatiq Digital Solutions AB Tech & Consulting Sweden Intec El Stockholm AB Tech & Consulting Sweden Intec Project Solutions AB Tech & Consulting Sweden Enervion Oy Electrical Rest of Nordics Contents Introduction Strategy Market Market trends Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany » Start-ups Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 19Directors' Report – Strategy
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Case "We have exceeded our expectations, both in volume and in how quickly we reached profitability." "During the start-up phase, Instalco’s existing subsidiaries were crucial. By linking the Tech & Consulting operations to ongoing projects and contracts at an early stage, Intec was able to establish itself quickly, while simultane- ously increasing technical expertise within the Group", Anders Lundin explains. Founded through the start-up model Project planning, analysis, and theoretical competence were moved closer to execution – and the relationship with end customers was strengthened. "We worked with end customers early on, but could also contribute to the contracts. It gave us momentum and credibility from the start." When Instalco launched its technical consult- ing offering in 2020, Intec became the central player, founded through Instalco’s start-up model which has been present since the Group’s inception. The model is part of Instalco’s long- term strategy to build a strong presence within geographical and technical growth areas. During these five years, Intec has been estab- lished in some 30 locations in Sweden as well as in Norway and Finland, and today has approximately 530 employees. The business focuses on project planning within electrical, heating & plumbing, ventilation, fire, energy, sprinklers, and control and regulation techno- logy, as well as project management within real estate and industry. "The decentralised identity with short deci- sion-making paths and a proximity between employ ees and management, exactly the same identity that Instalco is based on, has been absolutely decisive. Proximity to the market, short decision-making paths, and clear local responsibility are what make it work." "This is an efficient way to build companies together with individuals who share the same philosophy. We look for drive, business acumen, and competence. We have gone from idea to reality and created a Group with a strong culture, a strong local presence, and proud employees. Together we have created the com- pany we felt was missing," says Anders Lundin. Professional development and personal growth is a particularly strong driving force. "I enjoy seeing people grow and take on new roles. Many of our CEOs have previously been leaders in lower positions and then developed into business leaders internally. Leadership development is a central part of both Intec and Instalco." What does the future look like within Tech & Consulting? "We will continue to develop Intec and Inmatiq in step with how our employees develop. We will continue to start companies as long as there is a market to grow in, and there will be for many years and in many geographies. The entrepreneurial spirit, even among consultants, will continue to be important in the future." "Since we, as a company, do not have a long history, our operations are characterised by people with a forward-thinking spirit. We consist of employees who have broad competence and extensive experience within the entire field of technology. I am truly happy about these first five years, and now we are doing only one thing – we are looking forward," says Anders Lundin, CEO of Intec. Intec looks ahead after its first five years In 2020, Instalco launched its technical consulting offering with the subsidiary Intec as a central player. The idea was to be able to offer project planning together with the existing installation offering and enter the customer’s decision-making process earlier. Today, five years later, Anders Lundin, CEO of Intec and Head of Instalco Tech & Consulting, notes that development has been faster and gone further than expected. Anders Lundin Together, we have created the company we felt was missing Contents Introduction Strategy Market Market trends Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany » Start-ups Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 20
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Instalco’s contribution to sustainability Instalco’s ambition is to deliver sustainable world-class installations on a daily basis. The Group’s companies are specialists in the design and installation of, among other things, solar cells, energy-efficient heat pumps, geothermal heating systems, heat exchangers, cooling systems, LED lighting, charging stations, sprinkler systems, and water and air purification systems. New installations are more energy-ef- ficient and resource-saving than older systems, which is a starting point for reducing the climate impact of buildings and properties. In construction projects, Instalco contributes a sustainability perspective at every stage and offers customers increased knowledge of environ- mental improvement opportunities in both new build and renovation. Safe and sustainable installations are given high priority. A safe and developing work environment for all employees is fundamental to Instalco’s continued success, and safety is prioritised above all else. In both the Nordics and Germany, Instalco designs and installs electrical, heating & plumbing, and ventilation systems in properties, industries, and facilities. Projects are often complex, and with expertise and the right conditions, Instalco can contribute to safe installations that lead to a more sustainable society for every project. The projects often involve critical infrastructure and mean that essential societal func- tions, such as schools, preschools, hospitals, and elderly care homes, can function effectively every day, all year round. Instalco’s climate targets A central focus area within sustainability work in 2025 has been the transition to more comprehensive sustainability reporting with ref- erence to the EU Corporate Sustainability Reporting Directive (CSRD) and the standards in ESRS. The work includes, among other things, the measurement and reporting of GHG emissions and environmen- tal impact in Scope 1, Scope 2, and Scope 3 according to the GHG Protocol. The Group has also continued to work towards the climate targets that were implemented during 2024: net-zero emissions across the entire value chain by 2045 at the latest, and a 50 percent reduction in GHG intensity in Scope 1 and 2 by 2030, with 2020 as the base year. Instalco’s climate targets are based on the industry’s roadmap and are consistent with the Paris Agreement’s goal of limit- ing global warming to 1.5°C. Sustainability programme Instalco runs the Group-wide sustainability programme Sustainable Installations, which focuses on three areas within ESG: Sustainable installations (E), Safe and developing working environment (S), and Mature leadership (G). Within these areas, there are 10 sustainability KPIs that are measured and followed up on annually. In line with Instalco’s business model, the ambition is to contribute to society every day through climate-smart, energy-efficient installations, lead- ing to lower resource consumption and a more sustainable planet. Contribution to sustainability Instalco’s ambition is to contribute every day to a sustainable society through a local presence that offers modern and energy-efficient technical solutions and installations. The green transition is a central part of Instalco’s busi - ness model, where installations are carried out with a focus on a sustainable world for the next generation. Oper - ations are conducted responsibly and with a holistic view of economic, environmental, and social factors. SUSTAINABILITY REPORT 2025 Read Instalco’s sustainability report on pages 52–99. Contents Introduction Strategy Market Market trends Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany Start-ups » Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 21Strategy – Instalco’s sustainability work
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Instalco’s sustainability work The Group-wide sustainability programme focuses on three areas within ESG: Sustainable installations (E), Safe and developing working environment (S) and Mature leadership (G). Electric and plug-in hybrid vehicles OUTCOME 2025 47% DESCRIPTION Electric and plug-in hybrid vehicles in the Group’s car fleet Sustainable Instalco projects OUTCOME 2025 489 DESCRIPTION Projects certified as Sustainable Instalco Projects 0 100 200 300 400 500 2524232221 Apprentices OUTCOME 2025 507 DESCRIPTION Apprentices in the Group 0 100 200 300 400 500 2524232221 2423222120 Instalco Academy OUTCOME 2025 208¹ DESCRIPTION Employees who participated in the Instalco Academy 1) Corresponds to 6,880 training hours 0 100 200 300 400 2524232221 24232221 Sickness absence OUTCOME 2025 4.4% DESCRIPTION Sickness absence among own employees 0 1 2 3 4 5 6 2524232221 24232221 % Employee satisfaction OUTCOME 2025 31 (eNPS) DESCRIPTION Employees who are satisfied with their work situation as a whole (eNPS) (2024: 31, 2023: 30) LTIFR1 OUTCOME 2025 10.27 DESCRIPTION LTIFR stands for Lost Time Injury Frequency Rate and measures absence due to accidents per million hours worked. 1) 2025 is the first year that Instalco is measuring LTIFR. In previous years, Instalco measured reported workplace accidents that led to sick leave. Development opportunities OUTCOME 2025 69% DESCRIPTION Employees who feel they have been offered professional development opportunities 0 20 40 60 80 2524232221 24232221 % INSTALCO’S CLIMATE TARGETS Monitoring of Instalco’s climate targets is presented in the sustainability report on pages 52–99. Whistle-blowing Year Number 2021 0 2022 0 2023 1 2024 1 2025 0 OUTCOME 2025 0 DESCRIPTION Reported, confirmed cases of breaches of the Code of Conduct through the whistle-blowing function Gender distribution OUTCOME 2025 7.2% 92.8% DESCRIPTION Women and men in the Group 0 20 40 60 80 100 2524232221 Women % Men 0 10 20 30 40 50 25242322 % Contents Introduction Strategy Market Market trends Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany Start-ups » Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 22Strategy – Instalco’s sustainability work
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A central part of Instalco’s sustainability work is the certification system Sustainable Instalco Project. The certification guarantees that important sustainability aspects are taken into account throughout the project’s implementa- tion. The criteria include, among other things, occupational safety, transport, climate benefit, recycling and waste sorting. Suppliers are expected to sign Instalco's Supplier Code of Conduct, which covers anti-corruption as well as values-related matters such as equal treatment and anti-discrimination. The certification is a seal of quality for the project, the customer, Instalco and the perform- ing subsidiary with its employees. Examples of Sustainable Instalco projects • When designing the ventilation for the new construction of a Snabbgross grocery store, Intec, together with VentPartner, proposed several energy-effi- ciency solutions. One example is that the ventilation in the building is designed to be demand-controlled, where airflows are regulated based on temperature, CO and presence, which reduces energy consumption. • For the customer VAV Veitvedt, Christiania Rørleggerbedrift has installed water-saving equipment in all bathrooms and kitchens at a new build. The heating is based on district heating, low-temperature radiators, and ventila- tion. There is also the possibility of controlling the heating based on presence in the building. • LVI-Urakointi Paavola has carried out a heating & plumbing assignment includ- ing an inspection of the heat pump installation at the energy company Helen Eiranranta. The installation will recover heat from wastewater in the Helsinki area. When the project is completed, it will produce significant amounts of district heating and district cooling. Sustainable Instalco projects Criteria for Sustainable Instalco Projects During 2025, Instalco carried out and certified 489 (476) Sustain- able Instalco Projects. For a project to be certified, it is required that the project has met the following six criteria: 1. A review of Instalco’s "Safe Employee" programme has been carried out. 2. The suppliers have signed "Instalco’s Code of Conduct for Suppliers". 3. The project contributes to climate benefit according to Instal- co’s established criteria. 4. A delivery plan with transport and ordering routines has been established. 5. Procedures for source sorting of materials and waste manage- ment have been followed. 6. The customer has been offered a sustainability agreement after the end of the project. Contents Introduction Strategy Market Market trends Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany Start-ups » Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 23Strategy – Instalco’s sustainability work
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Initiative for a safe and stimulating workplace Instalco shall offer a safe, secure and healthy working environment free from drugs and risks of ill health or accidents. Working at Instalco shall be developmental and contribute to strengthening the employees’ competence. Employees shall be given the opportunity to grow through work tasks and training that provide both challenge and stimulation. The Instalco Club With the aim of stimulating and rewarding activities that create social community and health for employees within the Group, there is the Instalco Club, an internal staff fund for staff-driven activities. Through the Instalco Club, employees can apply for funds for activities that contribute to social cohesion and a healthy lifestyle. Activities are determined by the person or persons applying for a grant from the fund. What is encouraged and granted by the Instalco Club must be initiated and imple- mented by the employees themselves, and everyone in the respective subsidiary must have the opportunity to participate. In 2025, 80 (80) applications were received, all of which were granted. In total, 1,648 (1,200) employees participated in the club’s activities during the year. All activities have been of a social, cultural, or physical nature where, for example, around 60 employees from different subsidiaries participated in Cykelvasan. The Instalco Club continues to contribute to a positive work environment by giving employees the oppor- tunity to meet, socialise, and develop a stronger cohesion outside of work. Safe Employee The sustainability programme includes the Safe Employee ini- tiative, an induction course that supervisors must conduct with their employees at the start of each new project that is to be certified as a Sustainable Instalco Project. The course covers social aspects in the workplace as well as rules and routines to avoid physical injuries. Health and safety matters are an integrated part of Instalco’s operations, and the Group works consciously and systemati- cally to ensure a good physical and psychosocial working envi- ronment. The overall objective is to create a safe, secure and healthy workplace that promotes both the development of the employees and the company. Instalco strives for a good work- ing climate that supports cooperation and counteracts bullying and harassment. Collaboration in the workplace shall be char- acterised by respect and understanding for one another and our differences. The majority of the companies within Instalco have collective bargaining agreements and follow national labour legislation. All employees have the right to be members of and be involved in trade union organisations. The Instalco Academy Instalco works actively to offer a stimulating work envi- ronment and opportunities for personal and professional development. An important part of this work is the Instalco Academy – an internal training platform that prepares future leaders and creates the conditions for career transitions within the Group. When appointing central roles in the subsidiaries, Instalco follows a clear strategy to primarily recruit internally. The purpose of the Instalco Academy is also to ensure that all employees within Instalco have the right competence and the best conditions to deliver in their respec- tive roles. During the year, Instalco has conducted a comprehensive review and development of the Instalco Academy’s entire training offering. The work has focused on creating clearer levels and more practical, role-adapted training that better supports the needs of the business. We have worked pur- posefully to deepen the Instalco Spirit in all training initiatives. Contents Introduction Strategy Market Market trends Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany Start-ups » Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 24Strategy – Instalco’s sustainability work
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The UN’s global goals for sustainable development Agenda 2030 is the action plan that the countries of the world have agreed upon to secure freedom, prosper- ity, and the environment for future generations. The plan is realised through 17 global sustainability goals that together and as a whole express ambitions for a desirable development. All actors in society have a responsibility for achieving the goals by the year 2030. The sustainability goals are used as a framework for national plans, international commitments, and the private sector. In Instalco’s operations, we consider sustainability goals 5, 6, 7, 9, 11, and 17 to be the most material. Examples of solutions from Instalco Examples of solutions from Instalco Instalco and the UN Sustainable Development Goals Instalco is a values-driven Group that cares about equal rights and opportu- nities for all employees. We contribute to the UN’s goal 5 by ensuring that all employees, regardless of gender, age, ethnicity, sexual orientation or disability, are given equal access to development opportunities, including through further training or apprenticeship programmes. Our core business includes cleaning air, cleaning and conserving water, and reducing energy consumption. Through our resource-saving installations, we contribute to the UN’s goal 6 through efficient water use, securing water sup- ply, improved wastewater treatment, and increased reuse. Our core business is to install solutions that clean air, clean water and save energy. Our installations contribute to the UN’s Goal 7 through access to electricity supply and modern energy, an increased share of renewable energy, and target 7.3 regarding an increased rate of improvement in energy efficiency. Through project planning and instal- lations, we contribute to sustainable industries, innovation, and infrastructure. We contribute to the UN’s Goal 9 through more efficient use of resources and by advocating for environmentally friendly technologies in installations. One of our business areas is industry, where we focus on sustainable technical installa- tions for the industrial sector. Every day we design and install systems that clean air and water and increase energy savings. Our installations and technical solutions contribute to the UN’s Goal 11 on sustainable cities and communities. Through climate-smart and sustainable installations we reduce resource use in society. We believe that change is most easily achieved if we collaborate, both internally and externally. Through partnerships and collaborations with other community actors (UN Goal 17), we therefore believe that we can best contribute to the UN’s global goals 5, 6, 7, 9, 11 and 17. All employees have the right to fair and equal working conditions, as well as good career opportunities, regardless of gender, gender identity or expression, age, ethnicity, religion or other belief, disability, sexual orientation or civil status. We strive to recruit locally and to reflect the diversity of society by welcoming employees from different backgrounds and all parts of society. Within the Heating & Plumbing (VS) discipline, design and installation of water-saving sanita- tion technology are offered. Examples include low-flush shower fittings and toilets as well as sensor-controlled water mixers. Furthermore, energy-efficient and resource-saving heating and hot water systems are offered. Instalco also works in projects regarding water treatment. Instalco has specialist expertise in energy optimisation through, for example, integrated building automation and sustainable energy solutions such as solar cells, battery storage as well as the installation of charging ports for electric and hybrid cars. Within the Heating & Plumbing discipline, for example, energy-saving cooling and ventilation systems are installed. Instalco has extensive experience in sustainable industrial projects – from pipe installations, welding, and mechanical assembly to electricity networks, thermal power, and automation. We operate in all industrial areas, such as process industry, mining, water, and energy, and have specialist expertise in pressure-bearing devices. Instalco also has specialist knowledge in indus- trial scaffolding, construction scaffolding, and weather protection. Instalco works in both renovation projects and new build, as well as with service, with the goal of contributing to properties and installations becoming safe, resilient, energy-efficient and sustainable. Our projects contribute to ensuring that schools, nurseries, hospitals, retirement homes and other functions essential to society can function every day, all year round. We collaborate daily between subsidiaries, as well as with customers and suppliers and other businesses and partners. Instalco supports and is a member of the UN Global Compact, which is the world’s largest sustainability initiative for companies and organisations. During 2025, we have continued our external collaborations with Universeum and Wayout International. Contents Introduction Strategy Market Market trends Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany Start-ups Sustainable contribution » The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 25Strategy – Instalco’s sustainability work
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Case When Ica was building a new Ica Supermarket in Leksand with an associated pharmacy, Intec played a central role in the area of sustainability. In addition to coordinating the environmental building certification, the assignment included performing extensive indoor climate simulations and a complete climate declaration at the design stage, showing the building’s CO footprint. "We are receiving more and more assign- ments of this type and are noticing an increased demand among customers for these kinds of services, such as different types of sustainability calculations and energy investigations within construction," says Linnéa Leppänen, Section Manager for Energy and Sustainable Construction at Intec. "In this assignment, we performed climate simulations to establish the conditions for heating, cooling, and ventilation to achieve an optimal indoor climate in the store year-round, while simultaneously being energy-efficient. For example, we simulated daylight and solar heat as a basis for making the right window choices and sun shading, as well as determining which heat sources are needed. We also performed an extensive energy balance calculation, which was some- what special as heat can be recovered from the food refrigeration in a store of this kind to meet the heating needs of the building." The result of Intec’s assignment for Ica was that the new store received Miljöbyggnad Silver certification. Increased requirements driving demand Linnéa Leppänen believes that the trend is clear within the sustainability area and that more and more requirements and regulations are emerging that require even more calcu- lations, declarations and reporting of climate impact within the construction sector. And this is something that benefits Intec, which is now preparing for a further increase in demand. Reuse is also a rapidly growing element within sustainability. Intec has long worked in this field as a service, guiding customers on what opportunities exist and how they can create modern functions with a mix of old and new material that provides a lower carbon footprint than using new material only. So far, most customers choose to buy new as it is usually cheaper than recycling. However, reuse is increasing steadily. Climate calculations in the offering Instalco also notes in its contracting assignments that customers are increasingly requesting advice on matters such as life cycle cost, reduced environmental impact and environmental performance. In these projects as well, it is becoming increasingly common for Instalco to offer climate calculations, from the production stage to operation. In an ongoing project, the Instalco company PoB:s Elektriska is performing electrical installations on behalf of NCC and Uppsala- hem. The Takryttaren project, with 175 newly built apartments in Uppsala, is estimated to yield 40 percent lower climate emissions compared to a normal building project of a similar type and size. "In this project, the environmental aspect has been absolutely central for the customer; we have had to report the environmental footprint for products and installations at a completely new level, enabling us to identify ways to reduce CO2emissions. The climate calculation has been a part that is at least as important as the cost calculation," says Anders Eriksson, CEO of PoB:s Elektriska. Increased demand in energy, environment and sustainability Instalco’s technical consulting company Intec has specialist expertise for calculations within energy, environ ment and sustainability, and offers services such as environmental certification and energy coordina - tion within construction. In an assignment for Ica, Intec coordinated the environmental building certification during the construction of a new grocery store. We are receiving more and more assign- ments of this type and are noticing an increased demand Linnéa Leppänen Contents Introduction Strategy Market Market trends Strategic targets Value creation Strategic focus areas Acquisitions Expansion into Germany Start-ups Sustainable contribution The UN's global goals Operations Corporate Governance Sustainability Statement Financial information Other information 26Instalco Annual and Sustainability Report 2025
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Operations Contents Introduction Strategy Operations Business description Segments Sweden Rest of Nordics Corporate Governance Sustainability Statement Financial information Other information
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Instalco is a leading Group in technical installations and service solutions in Northern Europe. We offer project planning, installation, service and maintenance of buildings and installations for customers in both the private and public sectors. Through our disciplines; electrical, heating & plumbing, ventilation, industry and Tech & Consulting, we deliver energy-efficient and cost-aware end-to-end solutions that contribute to a more sustain- able society. Our projects include everything from new construction and conversions to renovations and ongoing service, with a focus on optimising operations, reducing energy consumption and reducing environmental impact and climate footprint. Business concept Instalco offers complete technical solutions in electricity, heating & plumbing, ventilation, industry, and Tech & Consulting for the North- ern European market. We combine the local company’s proximity to the customer with efficient collaboration and mature leadership. Core values Instalco uses the following three key words in its operations which form Instalco’s core values: "Innovative, effective, cooperative". Our core values provide clear customer promises for Instalco and Instal- co’s companies. They describe how Instalco work every day. Geographical focus Instalco operates mainly in Sweden, Norway and Finland, with the majority of the business in Sweden. Since March 2025, Instalco has also been established in Germany via the minority acquisition of Fabri AG. The Group’s operations are focused on regions with high average growth, which are often characterised by housing shortages, an ageing real estate stock and high relocation rates. The increasing growth in these regions leads to a strong underlying demand for Instalco’s services. Offering Through close cooperation between subsidiaries across business areas, Instalco offers complete, integrated, and long-term sustainable solutions. Instalco's energy-efficient solutions help reduce resource use and optimise energy consumption. The subsidiaries specialise in different technical areas, enabling cooperation, knowledge sharing and cross-selling. Drawing on technical expertise and broad expe- rience, Instalco can enter a construction process early by offering multidisciplinary, sustainable, and customised solutions. Organisation Instalco consists of more than 150 subsidiaries under their own brands, organised into four units: Sweden, Norway, Finland and Tech & Consulting. Each country has its own management structure with responsibility for governance, follow-up and develop ment within each respective market. Under these units, there are 13 business areas where the subsidiaries operate with a focus on cooperation, exchange of experience and local presence. The head office acts as a support function and provides expertise in accounting, finance, acquisitions, business development, purchasing, communications, IR, sustainability and training through the Instalco Academy. Contract types Instalco primarily focuses on projects between SEK 1 million and 75 million in order value. More than 80 percent of the company’s revenues from projects, excluding services, currently come from projects within this range. Instalco is engaged either to carry out an individual assign- ment or as a turnkey contractor. Turnkey contracts mean responsibility for and coordination of project planning, proposals for appropriate technical solutions and installation. Remuneration is at fixed prices for the whole contract or on a time and material basis, which is often the case in partnering projects. About 43 percent of Instalco’s projects are conducted as fixed-price projects, and the remaining 57 percent on a cost-plus and other forms of remuneration, for example with service assignments. Partnering Collaborative contracts, also called partnering projects, are an arrangement where Instalco together with the client, end customer, suppliers, and other subcontractors form a team and work together from start to finish in the project. This method promotes synergy effects and all individual competencies work together for the good of the project. With a common budget and high transparency regarding costs, the customer gains insight into the project, while the Group secures remuneration through the mark-up system or fixed-price portion included in the partnering. Partnering is a form of collabora- tion that is growing throughout the Nordics, and virtually all of Instal- co’s larger projects are carried out in some form of partnering. Customers Main customer groups are construction companies, real estate com- panies, industrial companies and the public sector. Construction com- panies are the single largest customer group. Instalco has approx- imately 2,000 customers and the five largest customers accounted for approximately 14 percent of sales during 2025. The single largest customer accounted for less than 5 percent of sales. Business development Instalco conducts structured and long-term work to develop the busi- ness and strengthen the Group’s profitability over time. During 2025, this work has been intensified through the launch of Instalco 2.0, a fur- ther development of the decentralised operational model with clearer common frameworks and reinforced support for the companies. A central part is Grundplattan (The Foundation), which describes the common working methods and requirements intended to ensure quality, control, and efficiency in all companies. It creates a common base to stand on and facilitates consistent monitoring of the business. Portfolio management has been strengthened to identify companies in need of support early, as well as to spread experiences from com- panies that perform strongly. The GoGr8 programme is an important tool in this work and is aimed at companies in need of more exten- sive measures to strengthen profitability. Through analyses, action plans, and access to specialist expertise, the necessary conditions for sustainable results are created. Overall, this development contributes to combining local entrepre- neurship with clear common working methods, which strengthens the Group’s competitiveness and growth capacity over time. Business description Contents Introduction Strategy Operations » Business description Segments Sweden Rest of Nordics Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 28Directors' Report – Operations
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Services • Energy efficiency • Construction, project planning, assembly • Alarms and monitoring • Data networks and control of technical equipment • Energy optimisation • Charging ports for electric vehicles • Remote reading • Control technology • Service and maintenance • Marine installations • Energy storage Services • Installation of district heating, natural gas, heat pumps, comfort cooling • Pipe replacement and preventive maintenance • Water treatment and water consumption optimisation • Sprinkler systems • New construction • Ongoing repairs • Service and maintenance • Repairs, conversions and extensions • Project planning • Control and regulation technology • Energy efficiency measures Services • Installation and indoor climate solutions • Air purification • Energy optimisation • Mandatory ventilation inspection • Control technology • Building automation • Service and maintenance • Project planning Services • Pipe installations • Cooling installations • Electrical power installations • Infrastructure • Automation • Instrumentation • Exhaust gas treatment • Ballast water management • Project planning • Energy • Safety • Industrial scaffolding and weather protection • Compressors • Composite solutions • Steel assembly • Mechanical installations • Ground and mining works Services • Electrical • Heating & plumbing and sprinklers • Communication • Security • Cooling • BIM • Automation – real estate and industry • Ventilation • Energy efficiency • Fire and risk • Sustainable construction • Environmental certifications • Simulation calculations • Digitalisation • Project and construction management • Soil, water & sewage, geotechnics Customers • Construction firms • Real estate companies • Government agencies, municipalities and regions • Housing companies • Industrial companies • Fishing industry Customers • Construction firms • Real estate companies • Government agencies, municipalities and regions • Housing companies • Industrial companies Customers • Construction companies • Real estate companies • Government agencies, municipalities and regions • Housing companies • Industrial companies Customers • Industrial companies • Electricity and power companies • Mining companies • Shipping companies • Maritime transportation companies • Municipalities & regions • Trusts Customers • Construction companies • Government agencies, municipalities and regions • Installation companies • Property owners • Industries • Energy companies • Industrial construction companies The typical timeline of a construction project provides high visibility over upcoming installation projects ~12–18 months ~12 months ~8 months Installation companies are usually contracted INSPECTIONDesign Building permit Basis Building shell Installation Inspection Service Management ELECTRICAL HEATING & PLUMBING VENTILATION INDUSTRIAL TECH & CONSULTING Contents Introduction Strategy Operations » Business description Segments Sweden Rest of Nordics Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 29Directors' Report – Operations
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Case Göteborg Grand Central will become a central part of the future Centralstaden district – linked with the Nils Ericson Terminal, the existing central station, and the West Link. "It is a prestige project, both for the City of Gothenburg and for us at Instalco. We have dared to present an offer that focuses not only on price, but also on reuse, climate data, and long-term sustainability. That was an important reason why we were awarded the contract," says Kristian Grönskog, Business Area Manager for Instalco West. For Instalco, the project is unique, both in scope and in the way it is being implemented. The client is Peab, with Jernhusen as the end customer and future manager. The total order value for the Instalco companies currently amounts to approximately SEK 130 million. "Göteborg Grand Central is one of the larger collective collaborations we have had within Instalco. Eight companies acting as a unified team and taking overall responsibility." Kristian Grönskog also believes that the approach of combining electrical, heating & plumbing, ventilation, sprinklers, and auto- mation into a joint installation package with local specialist companies in a single offer has been decisive. Both for the implementation and for the customer’s peace of mind. "For Peab, this means a clear cost picture, coordinated deliveries, and one party taking responsibility for the whole, including all boundaries between the systems. It creates stability in a very complex project." Coordinating work within the Group The cooperation is also evident in everyday life at the construction site. The Instalco com- panies work as a common installation group, with coordinated logistics, common transship- ment areas and strict "just-in-time" deliveries. "Logistics is absolutely crucial. Space is limited and requirements are high. Project managers from each respective company drive the logistics together, and we help each other continuously to maintain the flow. I also see the cooperation as a testament to what we can achieve when we join forces. The exper- tise exists within the companies, but together we can take responsibility for truly large and complex projects, in a way that creates clear customer benefit." Sustainability-certified Instalco project The project has a clear sustainability focus and the ambition, for Instalco’s part, is for it to be certified as a Sustainability-certified Instalco project. Göteborg Grand Central is rated according to Breeam Outstanding – the highest climate level, which currently only about ten buildings in Sweden achieve. "It sets far higher requirements than traditional projects, not least regarding the installations. Among other things, we work with reused ventilation ducts, cable ladders and circular materials, CO -reduced steel and climate calculations for the entire building. This affects everything from design to assembly and documentation," says Kristian Grönskog. The eight Instalco companies in the project are Elektro-Centralen, LG Contracting, Tofta Plåt & Ventilation, Sprinklerbolaget, Boges- unds El & Tele, Intec, Zenisk and Inmatiq. Eight Instalco companies in collaboration for the Gothenburg Central Station redevelopment Gothenburg’s new station building, with the project name Grand Central, is one of Instalco’s largest projects in terms of installation responsibility and the number of involved subsidiaries. During the new construction of the central station, eight Instalco companies are collaborating in a joint assignment regarding design and installation. Kristian Grönskog Together, we can take responsibility for truly large and complex projects Contents Introduction Strategy Operations » Business description Segments Sweden Rest of Nordics Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 30
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In 2025, Instalco took a significant step in the Group’s development by introducing a country-based organisation under Sweden, Norway and Finland. As of 1 January 2026, the new structure replaces the division into Sweden and Rest of Nordics, with the aim of creating a clearer management structure, strengthened governance and monitoring, as well as a stronger foundation for increased profitability and continuous improvements. At the operational level, Instalco has also introduced corresponding units, namely Sweden, Norway and Finland, with the addition of the Tech & Consulting unit which is cross-border. There is a COO under each country manager. The 13 business areas that form the foundation of the organisation remain unchanged. The Group’s business model with decentralised entrepreneurship in local companies remains firm and continues to be the core of Instalco’s way of creating value. With the new organisation, the objective is to strengthen collaboration, the exchange of experience and efficiency within each country. Our segments SWEDEN 71% Share of net sales 69% Share of EBITA REST OF NORDICS 29% Share of net sales 31% Share of EBITA ELECTRICAL INDUSTRY VENTILATION HEATING & PLUMBING TECH & CONSULTING Contents Introduction Strategy Operations Business description » Segments Sweden Rest of Nordics Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 31Operations
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Sweden Operations Sweden is divided into nine business areas coordi- nated by business area managers responsible for collaboration between the subsidiaries and imple- mentation of the Instalco model. The Country Man- ager is responsible for the overall development of the Swedish operations and the COO Sweden for operational follow-up and implementation. The segment offers project planning, installation, and service in electrical, heating & plumbing, ventila- tion, and industry, as well as Tech & Consulting services. Customers Instalco has a broad customer base in Sweden with a very high proportion of recurring customers. The most common services in the segment are project planning and installation services, often in connection with the renovation and new construc- tion of properties, as well as service. Customers in industrial operations demand services in industrial system solutions, such as the installation of pro- cess electronics and industrial piping. The need for the Group’s services varies between customer groups, which stabilises demand over a business cycle. In the technical consulting area, digitalisation and efficiency improvements are major drivers. Development 2025 The year has largely been characterised by the introduction of the new improvement initiative, Instalco 2.0. As part of this, the central organisa- tion has been restructured to get closer to the operational activities. A priority area has been to strengthen project management, increase effi- ciency and reduce risk in the project portfolio. Col- laboration between Instalco’s Swedish companies has continued to deepen during the year, and the proportion of projects where several companies work together has increased. The Industry busi- ness area has shown particularly positive develop- ment during the year. STRATEGIC PRIORITIES 2025 • Introduction of a national organisation as part of the Group’s Instalco 2.0 improvement work. • Establishment of a multidisciplinary offering in Örnsköldsvik. • Investment in continued growth and increased market presence for the Tech & Consulting operations. Key performance indicators Sweden, SEK m 2025 2024 Net sales 9,635 9,427 EBITA 554 613 EBITA margin, % 5.8 6.5 Order backlog 6,593 6,816 6.8% Market share 141 billion SEK TAM 1) Source: Navet Analytics Contents Introduction Strategy Operations Business description Segments » Sweden Rest of Nordics Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 32Operations
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Rest of Nordics Operations Instalco’s subsidiaries have a broad service offer- ing in electrical, heating & plumbing, ventilation, industry, and Tech & Consulting and primarily carry out projects in major cities. Energy efficiency programmes and well-functioning collaborations between the subsidiaries are both success factors in Norway and have led to Instalco being awarded several large projects during the year. At the same time, Finland has the potential to become an important hub for the technical consulting busi- ness with the establishment of Intec, which has grown during 2025. Customers Customers in new construction, maintenance, service and renovation of buildings and installa- tions, as well as in industrial installations, make up a majority of the customer base in Norway and Finland. Similar to Sweden, the customer base is relatively broad with a high proportion of recurring customers. Demand for energy efficiency is par- ticularly high in Norway, which has an energy mix consisting almost exclusively of renewables; how- ever, there is a large and growing need for electric- ity that is driving development. In Finland, custom- ers are mainly found in the major cities. With the previous acquisition of IT-Line Service, Instalco has strengthened its presence in the process industry. Development 2025 In connection with the introduction of a country organisation and the upcoming new segment tran- sition, the central organisation has been strength- ened in both Norway and Finland. The change is part of Instalco 2.0, which is the Group’s long-term development work. During the work on Instalco 2.0, the focus has been on continued support and development of the subsidiaries through targeted operational and management initiatives. This has gradually led to improved efficiency, implementa- tion, and profitability in the subsidiaries. STRATEGIC PRIORITIES 2025 • Establishment within energy storage and microgrids in Finland through the start-up of the subsidiary Enervion. • Continued quality improvement of a growing order backlog through clearer project selection and risk discipline. • Development work through the Instalco 2.0 initiative. Key performance indicators Rest of Nordics, SEK m 2025 2024 Net sales 3,963 4,263 EBITA 251 265 EBITA margin, % 6.3 6.2 Order backlog 2,917 2,186 5.9% Market share 67 billion SEK TAM 1) Source: Navet Analytics Contents Introduction Strategy Operations Business description Segments Sweden » Rest of Nordics Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 33Operations
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Case Lidingö Elektriska is one of the Instalco companies that have chosen to prioritise smaller contracts over large ones. The company’s everyday business primarily involves ongoing service work, renovations, and projects where proximity to the end user is central – from private individuals to housing cooperatives, smaller construction companies, and municipalities. "We do what we are good at, and therefore we steer clear of the large contracts. It has been that way ever since the company was founded in the 1930s," says Jimmy Eriksson, CEO of Lidingö Elektriska. The company consists of eight fitters and two people in the office. Jimmy Eriksson has worked in the company for 15 years and took office as CEO in 2024. The business is charac- terised by variation, both in the content of the assignments and in meeting people. "I like the personal contact. One day we are at a private individual’s home, the next day we are working for a housing cooperative or a smaller construction firm." A typical project is the ongoing work at a housing cooperative on Lidingö, where Lidingö Elektriska is replacing meter panels and rewiring rising mains from the basement to the apartments. Fundamental work that often leads to follow-on projects. "It is a couple of hundred hours of work, with two to three men on site at all times. All residents remain in their homes during the work, so planning is absolutely critical." Clear planning from the start Planning and communication are precisely what Jimmy Eriksson keeps returning to. Closures, access, and dialogue with residents must function smoothly for the work to flow. "We should not have to make decisions when something has already happened. That is why it is important that we have clear plans and solutions for different scenarios before we start." Working in people’s homes places high demands on the installers, both profession- ally and socially. "Material knowledge is a given, but customer service is at least as important. Cleaning, communication, and getting in touch if you are going to be late – that is fundamental for us." Focus on a broad offering Lidingö Elektriska rarely ties itself to a single customer or a large project. Instead, breadth and flexibility are sought, from fixture replacements in housing cooperatives to temporary installations at events such as Lidingöloppet. "Managing the business this way makes it less vulnerable. We are quick off the mark and can manoeuvre even in challenging times." During the economic downturn, Lidingö Elektriska has maintained its focus on customer relationships and presence out in the field. "As CEO, I cannot sit and wait for the jobs to come to us. It is about being out there, listening to customers, building long-term relationships and selling our services. The fact that they get in touch again is the best testimonial we can get. We are like a team working closely together. The employees keep their eyes and ears open and are involved in bringing in assignments to the firm," says Jimmy Eriksson. Focusing on small, everyday assignments The majority of Instalco’s assignments are in the market’s mid-sized segment with projects in the size range of SEK 1 million to 75 million. One Instalco company that has chosen to focus on small assignments is the venerable Lidingö Elektriska. Jimmy Eriksson We are quick off the mark and can manoeuvre even in challenging times Contents Introduction Strategy Operations Business description Segments Sweden Rest of Nordics Corporate Governance Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 34
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Corporate Governance Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman Corporate Governance Report Board of Directors Management Guidelines for remuneration Other information Risks Sustainability Statement Financial information Other information
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Comment from the Chairman 2025 was a year that in many ways clarified the importance of active and responsible board work. In a continuously challenging market with uncertainty and squeezed margins, Instalco remained stable, with a business model that has shown its strength over time, but also with a clear insight into the need for continued development. Instalco has managed the market situation well and is simultane- ously strengthening the conditions for long-term competitiveness and profitability through the work on Instalco 2.0. Following years of expansion, Instalco is refining its operations and focusing on consoli- dation and profitability, where one of the most important challenges is selecting and executing the right deals. Instalco 2.0 is now the way of working to deliver in accordance with the Group’s strategic and financial targets. The Board’s work during 2025 has been largely characterised by mat- ters concerning governance, risk management, and follow-up. During the year, the Board has continuously worked on strategic matters as well as ongoing decisions in connection with interim reports. Signif- icant matters on the Board’s agenda during the year have included, in addition to the management’s Instalco 2.0 initiative and the suc- cession in Instalco, the consideration of matters concerning capital allocation, financing, sustainability, and acquisitions. A particularly important area is the work with overall risk manage- ment and risk elimination in connection with major projects. In this regard, Instalco has a well-functioning routine, and the Board works according to a clear model for risk assessment of deals and projects. Within the area of risk management and internal control, the Group has reviewed and updated Group-wide policies and steering docu- ments during the year, for a good corporate culture and corporate governance that ensure compliance with laws, regulations, and stock exchange requirements. Instalco has a very competent and well-functioning Board and man- agement team with extensive experience. The Board’s multifaceted background from relevant industries means that the board members complement each other in an excellent way. Each year, the Chairman of the Board leads the evaluation of the work of both the Board and management. In connection with Per Sjöstrand’s resignation as Chairman on 31 July 2025, I was appointed by the Board to take over the role of Chairman. I have been a member of Instalco’s Board since 2016 and would like to thank you for your confidence. The change of Chairman took place as a natural step after Per Sjöstrand took over the role of President and CEO following Robin Boheman. The Board’s collective assess- ment is that the changes in these roles are positive for Instalco and the company’s continued development in its next phase. Instalco’s business concept is to deliver energy-efficient and technical solutions and installations. These are services that help customers reduce their climate footprint and, in this way, sustainability is inte- grated into both strategy and business. The Board sees sustainability as a prerequisite for long-term value creation for our customers, employees and shareholders. The Board looks to the future with confidence and is convinced that through Instalco 2.0 and active local entrepreneurship, the company has very good prospects for continuing to create long-term value. In conclusion, on behalf of the Board, I would like to express my sincere thanks to our employees, CEO and Group Management for their tremendous commitment during the year, to our customers and partners for their excellent cooperation, and to our shareholders for their continued confidence in us. Johnny Alvarsson, Chairman of the Board Contents Introduction Strategy Operations Corporate Governance » Comment from the Chairman Corporate Governance Report Board of Directors Management Guidelines for remuneration Other information Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 36Corporate Governance Report
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Corporate Governance Report Instalco, as a public Swedish limited company listed on Nasdaq Stock- holm, applies the Swedish Corporate Governance Code (the Code). The Code is available at www.bolagsstyrning.se, which also describes the Swedish corporate governance model. This Corporate Govern- ance Report is submitted in accordance with the Annual Accounts Act and the Code and describes Instalco’s corporate governance during the 2025 financial year. Instalco has no deviations from the Code to report for 2025. Instalco has not had any violations of Nasdaq Stockholm’s Rulebook for Issuers or generally accepted principles in the securities market. The Corporate Governance Report has been reviewed by Instalco’s auditor, as stated in the Auditor’s Report. Share capital and shareholders At the end of 2025, Instalco had 10,685 known shareholders according to Monitor’s shareholder register. All shares are of the same class with equal voting rights and share of the company’s capital and profit. At the end of the year, no shareholder had a holding representing at least one tenth of the outstanding share capital and votes. The ten largest own- ers controlled 53.2 percent of the share capital at the end of the year. The proportion of shares owned by Swedish owners amounted to 40.3 percent of the share capital and votes at the end of the year. Instalco has three outstanding warrant programs totalling 6,950,000 shares, which corresponds to 2.6 percent of the total number of shares. Since 2018, the Board of Directors has requested and received a man- date from the general meeting to decide on the authorisation to issue shares. Since 2019, the Board has requested and received a mandate from the general meeting to acquire and repurchase its own shares. For the Annual General Meeting 2026, it is proposed, in the same manner as resolved at the Annual General Meeting 2025, to grant the Board of Directors authorisation regarding share issues and the repur- chase and transfer of own shares. According to the Annual Accounts Act Chapter 6, Section 2 a, listed companies must provide information about certain conditions that could affect the opportunities to take over the company through a public takeover bid for the shares in the company. In the event that the company is delisted from Nasdaq Stockholm or that a share- holder other than the current main shareholder achieves a holding of more than 50 percent of the capital or votes, the granted credit facility will be subject to renegotiation. Articles of Association In addition to legislation and the regulations of Nasdaq Stockholm, the parent company’s Articles of Association and its internal guide- lines for corporate governance form the basis for corporate govern- ance. The Articles of Association specify, among other things, the Board’s registered office, the nature of the business, the limits on share capital and the number of shares, and the conditions for partic- ipation in the general meeting. There is no provision in Instalco AB’s Articles of Association that restricts the right to transfer shares. Nei- ther do the Articles of Association contain any special provisions on the appointment and dismissal of board members or on amendment of the Articles of Association. For more information on the Articles of Association, see Instalco’s website. General meetings of shareholders Shareholders exercise their influence at the Annual General Meeting (AGM) or, where relevant, at an Extraordinary General Meeting (EGM), which is the Parent Company’s highest decision-making body. The AGM is to be held in Stockholm within six months of the end of the financial year. At the AGM, resolutions are passed on the election of a Board of Directors and Chairman of the Board, election of auditor, adoption of the income statement and balance sheet, appropriation of profits and discharge from liability for board members and the CEO, the nomina- tion committee and its work, as well as guidelines for remuneration of senior executives. Resolutions at general meetings are normally GOVERNANCE STRUCTURE* Sweden Tech & ConsultingFinlandNorway Auditors Board of Directors Nomination Committee Audit Committee Remuneration Committee CEO Management team Shareholders via AGM 150+ subsidiaries and 6,000+ employees * Organisation as of 1 September 2025 From 1 January 2026, Instalco's external reporting structure will change, and the current segment division of Sweden and Rest of Nordics will be replaced by Sweden, Norway, and Finland. Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman » Corporate Governance Report Board of Directors Management Guidelines for remuneration Other information Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 37Directors' Report – Corporate Governance Report
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passed by simple majority and in the case of elections, the person who has received the most votes is considered elected. For certain resolutions, such as a change to the articles of association, a qualified majority is required. In addition to shareholders’ statutory right to participate in the general meeting, Instalco’s articles of association require advance notification to the general meeting within a certain period specified in the notice, whereby, where applicable, it shall also be stated if the shareholder intends to bring an assistant. AGM documents and minutes from general meetings are available on Instalco’s website. There is also information on the shareholders’ right to have matters addressed and when a shareholder’s request for such a matter must be received by Instalco. Annual General Meeting 2025 The Annual General Meeting took place on 6 May 2025 in Stockholm. At the meeting, 197,928,591 shares and votes were represented, either in person or by postal vote. Per Sjöstrand, Chairman of the Board, was elected Chairman of the Meeting. A majority of the mem- bers of the Board and the Group management attended the meeting. Authorised Public Accountant Camilla Nilsson, auditor in charge for Instalco, was also present at the meeting. The resolutions passed at the AGM were: • Dividend of 0.68 kronor per share. • Re-election of members Per Sjöstrand, Johnny Alvarsson, Carina Qvarngård, Carina Edblad, Per Leopoldsson, Ulf Wretskog, and Camilla Öberg. Per Sjöstrand was re-elected as Chairman. • Re-election of the registered auditing firm Grant Thornton Sweden AB for the period until the end of the next AGM. • The AGM resolved, in accordance with the Board’s proposal, to introduce an incentive programme, a directed issue of a maximum of 2,250,000 warrants. • The Board was authorised to resolve on issues of shares, convert- ibles, and warrants amounting to up to ten percent of the total number of shares in the company at the date of the meeting’s resolution. • The Board was authorised to resolve on acquisitions and transfers of treasury shares amounting to no more than five percent of all shares in the company. The AGM’s other resolutions are detailed in the full minutes which, together with other information about the meeting, are available on the website. Annual General Meeting 2026 The Annual General Meeting 2026 will be held on 5 May. For further information on the 2026 Annual General Meeting, see the website. Nomination Committee The task of the Nomination Committee is to evaluate the composition and work of the Board of Directors, on behalf of the shareholders, and to submit proposals to the AGM on the Chairman of the AGM, the members of the Board of Directors, the Chairman of the Board of Directors, the remuneration of the Board of Directors, the appoint- ment of a registered auditing firm and auditing fees, where applicable, and the principles for appointing members of the Nomination Commit- tee. Members of the Nomination Committee do not receive remunera- tion from the company for their work on the committee. The Nomina- tion Committee’s full proposals to the AGM are detailed in the notice of the Annual General Meeting and published on the company’s website. According to the instructions adopted at Instalco AB’s Annual General Meeting on 6 May 2021, the Nomination Committee shall consist of the Chairman of the Board and three members appointed by the three largest shareholders in the company in terms of voting rights. If any of these shareholders chooses to waive their right to appoint a member, the right is passed on to the next largest shareholder in terms of voting rights. The composition of the Nomination Committee meets the requirements regarding independence of members. The Nomination Committee’s documents for the AGM are available on the company’s website. The Nomination Committee for the 2026 Annual General Meeting consists of the following members: Name Representing Share of votes, % 30/09/2025 Carolina Wallbäcks Per Sjöstrand 8.54 Sophie Larsén AMF Pension & Fonder 7.78 Ingeborg Åkermarck Torpanmaa Oy 4.95 Johnny Alvarsson Chairman of the Board Total 21.27 The Board’s responsibilities The Board has ultimate responsibility for Instalco’s organisation and administration. The Board handles and decides on Group-wide matters such as: • Strategic orientation, sustainability, and material targets. • Material matters relating to optimisation of capital structure, investments, acquisitions, and divestments. • Monitoring and control of the business, financial position, sustaina- bility, provision of information, and organisational matters, includ- ing evaluation of the Group’s operational management. • Overall responsibility for establishing effective systems of internal control and risk management. • Material policies. Composition of the Board of Directors In accordance with the Articles of Association, the Board is to com- prise at least three and a maximum of ten members without any deputy members. Members serve on the Board as of the end of the AGM when they are elected and through to the end of the next AGM. There are no limits on how many consecutive terms a member may serve on the Board. The Nomination Committee has applied Rule 4.1 of the Code as a diversity policy when preparing the proposal for the Board. The goal is to achieve a well-functioning board composition with regard to diversity and breadth in terms of factors including gender, nation- ality, age and industry experience. The current composition of the Board is the result of the Nomination Committee’s work ahead of the AGM 2025. The Nomination Committee believes that the Board has an appropriate composition and size, and that it is characterised by versatility and breadth in terms of the members’ expertise and expe- rience in areas that are strategically important for Instalco. Regarding gender distribution, the proportion of women on the Board is 43 percent. Independence of the Board of Directors Prior to the AGM, the Nomination Committee evaluates the inde- pendence of the members of the Board of Directors. All board members, except for Per Sjöstrand, are independent with respect to the company, its management team and its largest shareholder. The Board has thus been assessed as meeting the requirements concern- ing its independence. Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman » Corporate Governance Report Board of Directors Management Guidelines for remuneration Other information Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 38Directors' Report – Corporate Governance Report
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The Board’s rules of procedure In accordance with the Swedish Companies Act, the Board issues writ- ten rules of procedure for its work each year. The rules of procedure contain rules on how the work is to be distributed among members of the Board of Directors, including its committees, the number of scheduled board meetings, matters to be dealt with at scheduled board meetings and the duties of the Chairman of the Board. The Board has also issued written instructions setting out the procedure for financial reporting to the Board and how the work between the Board and the CEO is distributed. Responsibilities of the Chairman of the Board The Chairman of the Board is responsible for ensuring that the Board’s work is well organised, conducted efficiently, and that the Board fulfils its obligations. The Chairman monitors the business through dialogue with the CEO. The Chairman is also responsible for ensuring that the other board members receive the introduction, information and documentation necessary to sustain high-quality discussions and decisions, as well as confirming that the Board’s decisions are implemented. Changes in the composition of the Board during the year Per Sjöstrand resigned as Chairman of the Board on 31 July 2025 when he took over as CEO until a new permanent CEO was appointed. In accordance with the Board’s rules of procedure, Johnny Alvarsson was appointed by the Board as Chairman until the 2026 Annual General Meeting. The company assesses that continuity in the Board’s work has been maintained and that internal control and reporting have functioned according to current instructions. The work of the Board 2025 The number of Board meetings in the financial year 2025 amounted to nine, of which three were before the 2025 AGM and six after the AGM, excluding per capsulam meetings. Instalco’s CFO served as secretary at the board meetings. Meetings during the year followed an approved agenda, which, together with documentation for each item on the agenda, was provided to the members in advance of the board meet- ings. Typically, ordinary board meetings last for slightly more than half a day to allow time for presentations and discussions. The CEO and CFO participate in the majority of all board meetings and the entire Group management participates in the Board’s Strategy Day. At each ordinary board meeting, a review is conducted of the current business situation, the Group’s results and financial position, and the outlook for the rest of the year. Items dealt with at the board meetings included: • Strategic orientation and material goals. • Approval of interim reports, year-end reports, and annual reports. • Approval of material policies. • Material matters relating to the optimisation of capital structure, financing, dividends, investments, acquisitions, and sustainability work. • Monitoring and control of operations, risk analysis and manage- ment, financial development, information disclosure, and organisa- tional issues. • Review with and report from the company’s external auditors. • Review with the auditors without the presence of the Group man- agement for evaluation of the CEO and Group management. • Evaluation of the work of the Board. The Chairman of the Board takes the initiative each year for the evaluation and leads the work. A presentation of the members of the Board of Directors can be found under the Board of Directors section and on the website. The total value of the board fees was set by the 2025 AGM at 3,050,000 kronor. The individual board members’ participation in board meet- ings and the distribution of fees are presented in the table. Evaluation of the Board The Board conducts an annual evaluation of its work. The Chairman of the Board takes the initiative each year for the evaluation and leads the work. The purpose of the evaluation is to further develop working methods, dynamics, efficiency and the working climate, as well as the main focus of the Board’s work. During the year, the evaluation took the form of a questionnaire completed by each mem- ber. The evaluation also includes interviews, group discussions and the Chairman holding individual discussions with individual board members. The results of the evaluation were reported in writing to the members, who subsequently discussed them together at a board meeting. The Chairman of the Board also reported the results of the evaluation at a meeting with the Nomination Committee. Remuneration Committee The Board has a remuneration committee and its tasks are carried out as an integrated part of the Board’s work at ordinary Board meet- ings. The main tasks of the Remuneration Committee are to: • Prepare the Board’s decisions on matters concerning remuneration principles, remuneration and other terms of employment for the Group management, • monitor and evaluate ongoing programs and programs that were concluded during the year for variable remuneration for the Group management, and • monitor and evaluate the application of any guidelines for remu- neration to senior executives established by the General Meeting as well as applicable remuneration structures and remuneration levels. Audit Committee The Audit Committee follows rules of procedure in line with the applicable requirements and performs a supervisory role regarding the company’s risk management, governance, control, and financial January February March April May June July August Septem ber October November December Structure for Instalco’s board work February Auditor’s reporting Year-end report March Annual Report Corporate Governance Report Sustainability Report Questions for the AGM May Interim Report January–March Full-year forecast Market and competitive situation Annual General Meeting Constitutive meeting Establishing the Board’s rules of procedure, instructions to the CEO, decision on authorisation hierarchy and policies June The Group’s strategy and business plan July Interim Report January–June August The Group’s sustainability work October Interim Report January–Septem- ber Full-year forecast Internal control, risk management Policy compliance December Budget and operational goals for the coming year Evaluation of work done by the Board and CEO Evaluation of bonus-qualifying points and remuneration audit Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman » Corporate Governance Report Board of Directors Management Guidelines for remuneration Other information Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 39Directors' Report – Corporate Governance Report
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reporting. The Committee maintains regular contact with the com- pany’s auditor to ensure that the company’s internal and external accounting meet the requirements of a listed company, and to discuss the scope and focus of the audit work. The Audit Committee evalu- ates the effectiveness of the internal control system and the Group’s risk management, and monitors the financial structure. Furthermore, the Audit Committee is responsible for monitoring the quality of the sustainability reporting, sustainability-related risks within internal control, and the auditor’s review of the sustainability information. The Audit Committee evaluates the audit work performed and informs the company’s nomination committee of the results of the evaluation, as well as assists the nomination committee in drawing up proposals for auditors and remuneration of the audit work. In 2025, the Audit Committee comprised board members Camilla Öberg (Chair of the Audit Committee), Per Leopoldsson, and Carina Qvarngård. The Audit Committee held six meetings at which minutes were taken. The individual board members' attendance at these meetings is detailed in the table. The external auditor in charge, Camilla Nilsson, and the CFO participated in all the meetings. The Secretary at the meetings was Instalco's CFO. At its meetings, the Committee dealt with the following, among other things: • Review of interim reports, year-end report, annual report, and sus- tainability reporting. Scope and accuracy of the annual accounts. • Review of the company’s risk analysis and management, govern- ance and internal control, as well as insurance coverage. • Significant accounting and sustainability issues. • Review of reports from the company’s auditor elected by the AGM, including the auditor’s audit plan. Auditor The nomination committee’s task includes proposing an auditor to the annual general meeting. The auditing firm Grant Thornton Swe- den AB (GT) was elected at the 2025 annual general meeting for the period until the end of the 2026 annual general meeting. Authorised Public Accountant Camilla Nilsson is the auditor in charge. GT contin- uously tests its independence in relation to the company and issues a written assurance to the Board each year that the audit firm is inde- pendent in relation to Instalco. GT conducts the audit of Instalco AB and in a majority of the subsidiaries. The independence of the exter- nal auditor is regulated in a special instruction adopted by the Board, which states in which areas the external auditor may be engaged in matters other than the standard audit work. The auditors work according to an audit plan and report their find- ings to the audit committee and the Board on an ongoing basis, both during the course of the audit and in connection with the adoption of the annual report. • The auditors are responsible for reviewing an interim report and the annual accounts to assess their accuracy, completeness and compliance with generally accepted accounting principles and other relevant accounting principles. • The auditors are responsible for reviewing the sustainability report- ing. • The auditor in charge participates in the annual general meeting and describes the audit work and any findings. President (CEO) and Group management The Board of Directors appoints the CEO and issues instructions for the CEO’s work. The CEO is responsible for Instalco’s day-to-day operations, such as operational management, organisation, finance and economic matters as well as ongoing engagement with Instalco’s stakeholders and the financial market. The CEO ensures that the Board receives the information required to be able to make well- founded decisions. The CEO has appointed a Group management and an Extended management team to support the work on Instalco’s operations. The CEO and management are presented in the section 'Group man- agement and Extended management team' and on the company’s website. Board of Directors 2025 Independent in relation to: Participation out of total number of meetings Fees as decided by the Annual General Meeting 2025, SEK 000s Member Position Elected Company and Executive Management Major shareholders Board meetings¹ Audit Committee Remuneration Committee Board fee Audit Committee fee Total fee Per Sjöstrand Chairman of the Board until 31 July 2025, member from 31 July 2025 2021 no no 9 out of 9 – – 425.0 425.0 Johnny Alvarsson Board member until 31 July 2025, Chairman of the Board from 31 July 2025 2016 yes yes 8 out of 9 – – 595.0 – 595.0 Camilla Öberg Board member 2018 yes yes 9 out of 9 6 out of 6 – 340.0 165.0 505.0 Per Leopoldsson Board member 2018 yes yes 9 out of 9 6 out of 6 – 340.0 82.5 422.5 Carina Qvarngård Board member 2018 yes yes 9 out of 9 6 out of 6 – 340.0 82.5 422.5 Carina Edblad Board member 2018 yes yes 9 out of 9 – – 340.0 – 340.0 Ulf Wretskog Board member 2023 yes yes 8 out of 9 – – 340.0 340.0 Total 2,720.0 330.0 3,050.0 1) Per capsulam not included. Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman » Corporate Governance Report Board of Directors Management Guidelines for remuneration Other information Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 40Directors' Report – Corporate Governance Report
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Guidelines for remuneration of senior executives The current guidelines for remuneration of the CEO and other senior executives were adopted at the 2022 Annual General Meeting. These guidelines align with the principles previously applied. To successfully implement the company’s business strategy and safeguard the company’s long-term interests, including its sustainabil- ity agenda, the company must be able to recruit and retain qualified employees. To do this, the company needs to be able to offer com- petitive remuneration. These guidelines enable senior executives to be offered competitive total remuneration. The Board’s proposal to the 2026 Annual General Meeting regarding guidelines for remuneration of senior executives is set out below. For the currently applicable guidelines, see the website and Note 5. For information on remuneration of senior executives during 2025, see Note 5. The Board of Directors has prepared a remuneration report for submission to the 2026 Annual General Meeting detailing how the guidelines for remuneration, adopted at the 2022 Annual General Meeting, have been implemented. The remuneration report also contains information on remuneration of the CEO and a summary of Instalco’s outstanding programs for long-term variable remuneration. The remuneration report is available on the website. Long-term incentive programs Instalco has three outstanding warrant programs totalling 6,950,000 shares, representing 2.6 percent of the total number of shares. These warrant programs are directed to the Group management, CEOs of the subsidiaries and other key individuals in the Group. The purpose of long-term share incentive programs is to create the conditions for boosting the motivation of employees that the Group has identified as important and trusted over the short and long term. The Board is of the opinion that an incentive program in accordance with the present proposal is to the benefit of the Group and the company’s shareholders. The Board’s report on internal control over financial reporting and sustainability reporting in accordance with CSRD The Board is responsible, in accordance with the Swedish Compa- nies Act and the Swedish Corporate Governance Code, for internal control and financial reporting, as well as sustainability reporting. Instalco applies International Financial Reporting Standards (IFRS) for the preparation of the Group’s financial statements. Furthermore, Instalco implements sustainability reporting in accordance with European Sustainability Reporting Standards (ESRS) and the new EU legislation, Corporate Sustainability Reporting Directive (CSRD), as of this annual report. Financial reporting must be appropriate with reference to applicable accounting rules and other requirements for listed companies. At Instalco, internal control over financial reporting primarily focuses on ensuring effective and reliable controls when accounting for acqui- sitions of subsidiaries, and correct valuation and consolidation of the operating subsidiaries. Responsibility for the effectiveness of the subsidiaries’ internal control structure, risk management, and finan- cial reporting lies with each subsidiary’s board and management, and is monitored and followed up by the Group management and the Parent Company’s Board of Directors through, among other things, quarterly self-assessments and board meetings in the subsidiaries. The CFO reports annually to the Board on the Group’s work with internal control. Internal control consists of, among other things, control environment, risk assessment, control activities, information, communication, and monitoring. Control environment Effective board work is the foundation for a good control environ- ment. The Board’s rules of procedure and the instructions for the CEO ensure a clear division of roles and responsibilities to facilitate the effective management of the organisation’s risks. GROUP-WIDE POLICIES Code of Conduct Aims to communicate our shared ethical values and business principles to employees, custom- ers, suppliers, other business partners and shareholders, along with providing guidance for carrying out daily tasks. Code of Conduct for Suppliers Aims to provide suppliers with clear guidelines on how to act in joint projects. Sustainability Policy Aims to communicate that the business is run responsibly with a holistic approach to envi- ronmental, economic and social perspectives. Instalco is to choose materials and methods that have a low impact on the internal and external environment, along with providing a safe and stimulating working environment. Financial Policy Aims to set out rules and guidelines for financing activities, establish the division of responsibilities and create good control over financial risks. The financial organisation must manage the financial risks that arise in the business, secure both short- term and long-term financing, and achieve the lowest possible financing cost. Communication and insider policy Aims to ensure accurate and high-quality infor- mation, and that information is managed both externally and internally, primarily with reference to applicable laws, regulations and other rules that apply to listed companies in Sweden and the Swedish Corporate Governance Code. Commu- nication with all the company’s stakeholders is to be open and helpful. Internal Control Policy Aims to provide a general approach that facili- tates a uniform way of evaluating all parts of the internal control, along with clarifying Instalco’s basic principles for internal control. A good internal control ensures appropriate, cost-ef- fective, and safe operations, reliable financial reporting, and compliance with applicable laws and regulations. GDPR policy Aims to ensure that personal data is managed in accordance with the General Data Protection Regulation (GDPR). The policy covers all regis- trations and processing in Instalco’s IT systems where personal data is handled. The policy cov- ers both structured and unstructured data. Purchasing policy Aims to create clear guidelines for how purchases should be carried out within the organisation. It functions as a steering document to ensure that all purchases are made in a professional, respon- sible, and sustainable manner. Risk policy Aims to create a common framework for how risks are identified, assessed, prevented, and fol- lowed up to ensure proactive and systematic risk management that supports strategy, business model, and targets, and complies with applicable legal requirements. Dividend Policy Aims to provide information on how much of the profit should be distributed to the company’s shareholders. When proposing dividends, consid- eration is given to the Group’s equity, long-term financing and investment needs, growth plans and other factors that the company’s Board of Directors consider to be important. Other policies Employee policy Vehicle policy Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman » Corporate Governance Report Board of Directors Management Guidelines for remuneration Other information Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 41Directors' Report – Corporate Governance Report
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The quality of external reporting is ensured through internal routines and actions. As of the 2025 financial year, this also applies to the inte- grated sustainability information. At each meeting, the Audit Com- mittee discusses specific focus areas within accounting and external reporting, and reviews interim reports and year-end reports. The company’s auditors also conduct a review of Instalco’s nine-month report. The Board of Directors has the ultimate responsibility for internal control and risk management. The Board’s rules of procedure and the instructions for the CEO, as well as the rules of procedure for the Board Committees, provide a clear division of roles and respon- sibilities to ensure effective management of the organisation’s risks. Along with the Group’s policies and other steering documents, these are intended to contribute to a good control environment at Instalco. Responsibility for daily operations rests with the CEO, who together with the Group management is responsible for the internal control required to manage material risks in ongoing operations. Through steering documents and organisational structure, decision-making paths, authorities, and responsibilities are clearly defined and com- municated between different levels of the organisation. Instalco has organised its operations based on decentralised prof- itability and earnings responsibility in a national organisation. Each subsidiary has a board and CEO with responsibility for governance of local operations in accordance with guidelines and instructions from Group level. Each subsidiary has its own administration to handle day-to-day bookkeeping and reporting. The local units primarily report to a Business Area Manager who is also the chairman of that unit’s board. Business Area Managers are responsible for monitoring their local units. Instalco has established principles, instructions, guidelines, and process descriptions for all reporting, including financial reporting, project accounting, and sustainability data. Instalco uses a common reporting and consolidation system as the basis for financial data, sustainability data, analysis, and follow-up. Procedures for budgeting, forecasting, and project accounting are assessed to strengthen the control environment and the security of the reporting. Specific control measures have been introduced during the year to ensure the quality of sustainability-related information. Management reports regularly to the Board, primarily through the Audit Committee, according to established procedures. During the year, management has accounted for the measures implemented to strengthen internal control and provided information on the measures currently under implementa- tion. The Audit Committee prepares the Board’s ongoing follow-up of internal control, which includes evaluating and discussing significant accounting and reporting technical issues. Risk assessment and control activities The Board ensures, through the audit committee, that the Group’s risk situation is continuously evaluated, after which the Board con- ducts an annual review of the risk situation. The risk assessment includes identifying and evaluating the risk of material misstatements in the accounting and reporting at Group and subsidiary level. Risk assessment is carried out on an ongoing basis and in accordance with established guidelines with a focus on individual projects. Control activities aim to identify and mitigate risks. Examples of con- trol activities include valuation of projects in progress, transaction-re- lated controls such as regulations concerning authorisations and investments, and clear payment procedures, as well as analytical con- trols performed by the Group’s central finance function. The Group’s central finance function and the heads of finance at the subsidiaries play a key role in creating the environment required to achieve trans- parent and fair financial reporting. To ensure an effective exchange of knowledge and experience among the Group’s accountants, regular finance conferences are held where current topics are discussed. One important overarching control activity is the monthly financial follow-up and follow-up of projects carried out via internal reporting systems. The subsidiaries’ financial development and project devel- opment are monitored continuously against set targets, forecasts, and KPIs. All subsidiaries submit an internal control report quarterly which is followed up. Other important parts of the internal control are the annual business plan process and forecasting processes. Through the internal improvement work under the name Instalco 2.0 and the Instalco Academy, training and frameworks have been created to drive continuous development and improvement. This includes fundamental processes, internal control, and a profitability culture. Information and communication Instalco has information and communication channels aimed at promoting completeness and accuracy in external information. To ensure that external information is correct, complete, and timely, Instalco has, among other things, an information and communica- tions policy adopted by the Board. In addition, there are internal instructions on how financial information is to be communicated between the Board, management, and subsidiaries. The Group’s cen- tral finance function is responsible for ensuring a uniform application of the Group’s principles and instructions for financial reporting. The central finance function identifies and communicates ongoing areas for improvement in financial reporting with all reporting subsidiaries. Instalco is committed to ensuring that irregularities affecting the com- pany, and which could seriously damage the business, employees, or others, are noticed and investigated as early as possible. Information about wrongdoings can be submitted via a whistle-blowing service on the website, which is provided by an external and independent party. The function is encrypted and password-protected. This service is also available to the Group’s subsidiaries and employees via the intranet, as well as externally on the Group’s website for other stakeholders. Follow-up The Board and management follow up and evaluate the business’s development, results, position, and cash flow on a monthly basis through a report package containing comments on outcomes and key performance indicators. The CEO and CFO also report on these matters at each Board meeting. The Board, Group management, and each subsidiary’s board follow up on the quarterly internal control report. The Board is updated on the internal control work and the results of this on an annual basis. The Audit Committee has a supervisory role over the company’s finan- cial reporting, risk management, as well as governance and control. The Audit Committee meets regularly with the company’s auditors and management to ensure that the company’s internal and external accounting, as well as related matters, meet the requirements for a listed company, and to follow up on any audit findings. Internal audit Based on the risk assessment and format of the control activities described above, which includes internal control reporting and its follow-up, the Board has decided not to establish a separate internal audit function. Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman » Corporate Governance Report Board of Directors Management Guidelines for remuneration Other information Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 42Directors' Report – Corporate Governance Report
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Board of Directors Johnny Alvarsson Born 1950 Member since 2016, Chairman since 2025 Current position Acting CEO Beijer Alma Other board positions Chairman: FM Mattsson Mora Group and Llentab. Member: Beijer Alma, Sdiptech and Rotundagruppen. Work experience Extensive experience as senior executive at several listed com- panies including Indutrade. Education MSc Engineering, Management training Independent in relation to Instalco and its senior executives Independent in relation to major shareholders Share ownership in Instalco 85,940 Per Sjöstrand Born 1958 Member since 2021. CEO since 2025. Chairman of the Board 2021–2025. Other board positions Chairman: Green Landscaping, Uniwater, Handverksgruppen AS, Eltel, ByggPartnerGruppen and Knowit AB. Member: Nordic Climate Group and Acurum. Work experience Founder of Instalco and CEO 2014–2021. CEO of several com- panies and both director and manager of major projects at the Swedish Transport Admin- istration. Education MSc Engineering, Chalmers University of Technology, Gothenburg Not independent in relation to Instalco and its senior executives Not independent in relation to major shareholders Share ownership in Instalco 22,957,835 Carina Edblad Born 1963 Member since 2018 Current position CEO Thomas Betong Other board positions Member: Sweden Green Build- ing Council and Fastighets AB Balder. Work experience Extensive experience in the con- struction industry as CEO and in senior positions at international companies including Skanska. Several years’ experience of board work in listed companies. Education MSc Engineering, Chalmers University of Technology Independent in relation to Instalco and its senior execu- tives Independent in relation to major shareholders Share ownership in Instalco 6,496 Per Leopoldsson Born 1960 Member since 2018 Current position Runs Solavik Förvaltning AB Other board positions Board member of Layer Group AB, Vinga Group, Brandkon- toret, AB Salktennis, and repre- sentative for Fastighetsägarna in Stockholm. Work experience Long experience in the real estate and construction industry. CFO Fastighets AB Näckebro, Ramböll and Bravida. Education MBA, Stockholm School of Economics Independent in relation to Instalco and its senior execu- tives Independent in relation to major shareholders Share ownership in Instalco 30,000 Carina Qvarngård Born 1959 Member since 2018 Work experience More than 35 years of expe- rience in senior positions at international companies includ- ing Ericsson, Sodexo Norden, Caverion, and senior consultant in sustainability and organisa- tion and business development. Education MSc Engineering, KTH Royal Institute of Technology, Stock- holm Independent in relation to Instalco and its senior execu- tives Independent in relation to major shareholders Share ownership in Instalco 2,500 Ulf Wretskog Born 1967 Member since 2023 Current position CEO Sodexo Corporate Services in Continental Europe Work experience 30 years of experience in Construction, Real Estate and Facility Management in leading positions in international com- panies such as Skanska, Coor and Sodexo. Has also held several board assignments in PE-owned portfolio companies. Education MSc Engineering, LTH Lund University Independent in relation to Instalco and its senior execu- tives Independent in relation to major shareholders Share ownership in Instalco 16,000 Camilla Öberg Born 1964 Member since 2018 Other board positions Board member at Xvivo Perfu- sion and Consafe Logistics. Work experience Extensive experience as CFO of international companies. CFO Yubico, CFO Cybercom Group, CFO Swegro Group, Head of Investor Relations WM-Data, CFO Logica. Education MBA, Stockholm School of Economics Independent in relation to Instalco and its senior execu- tives Independent in relation to major shareholders Share ownership in Instalco 4,485 Holdings as of 31 December 2025. Includes related party, natural and legal persons’ holdings. Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman Corporate Governance Report » Board of Directors Management Guidelines for remuneration Other information Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 43Directors' Report – Board of Directors
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Back row: Anders Lundin, Roger Aksnes, Johan Larsson. Front row: Fredrik Trahn, Jukka-Pekka Kujala, Per Sjöstrand, Christina Kassberg, Patrik Persson, Mathilda Eriksson. Group management Per Sjöstrand Born 1958 CEO, Board member Chairman 2021–2025 Other board positions: Chairman: Green Landscaping, Uniwater, Handverksgruppen AS, Eltel, ByggPartnerGrup- pen and Knowit AB. Member: Nordic Climate Group and Acurum. Work experience: Founder of Instalco and CEO 2014–2021. CEO of several companies and director and manager of major projects at the Swedish Transport Administration. Education: MSc Engi- neering, Chalmers Uni- versity of Technology in Gothenburg Share ownership in Instalco: 22,957,835 shares Christina Kassberg Born 1968 CFO Work experience: CFO Climeon, Addtech, Resurs Holding, Stim and Medivir. Auditor Öhrling Pricewater- houseCoopers Education: Bachelor's degree in economics, Stockholm University Share ownership in Instalco: 31,550 shares, 25,000 options (2023/2026), 50,000 options (2024/2027), 50,000 options (2025/2028). Fredrik Trahn Born 1969 VP Sustainability Work experience: Jour- nalist Svenska Dagbla- det, head of commu- nications Bristol Myers Squibb, press officer Electrolux, press officer SEB in Volvo Ocean Race, head of com- munications Swedish Athletics Association Education: Degree from the Institute of Graphic Design (GI), Stockholm University (SU) as well as studies in Swedish and linguistics at Stock- holm University (SU) Share ownership in Instalco: 27,565 shares, 50,000 options (2023/2026), 10,000 options (2024/2027), 15,000 options (2025/2028). Johan Larsson Born 1976 Country Manager Sweden Work experience: CEO Dalab Dala Luftbehan- dling, CEO Dalab Group AB Education: Upper secondary school and sheet metal and ventila- tion training Share ownership in Instalco: 1,656,610 shares, 35,000 options (2023/2026), 50,000 options (2024/2027). Roger Aksnes Born 1972 Country Manager Norway Work experience: Project manager and head of department Bravida, CEO Andersen og Aksnes Rørleggerbedrift Education: Plumbing and heating technician and master pipe layer, technical college Share ownership in Instalco: 531,152 shares, 35,000 options (2023/2026). Jukka-Pekka Kujala Born 1979 Country Manager Finland Work experience: CEO Aviator Airport Services Finland Oy. Various positions in the indus- trial and property services industry. Education: M.Sc. Automation Engineer Technology Share ownership in Instalco: 5,500 shares Patrik Persson Born 1964 COO Sweden Work experience: Vice President and CEO Rörläggaren Education: HVAC engi- neer technical college Share ownership in Instalco: 52,896 shares, 35,000 options (2023/2026), 35,000 options (2024/2027), 35,000 options (2025/2028). Anders Lundin Born 1966 President Tech & Consulting Work experience: 30 years of experience in the consulting industry in a variety of positions. Regional Manager and Business Area Manager at ÅF AO Buildings. CEO Intec Nordic Education: HVAC Engi- neer, Marketing and organisation theory at LTU, Linköping Share ownership in Instalco: 26,150 shares, 20,000 options (2023/2026), 10,000 options (2024/2027), 10,000 options (2025/2028). Mathilda Eriksson Born 1990 Head of IR Work experience: Jour- nalist Vestmanlands Läns Tidning. IR and communications roles at Kinnevik, Alimak Group and Kreab, among others. Education: MSc Business Management and BSc Business and Econom- ics, Stockholm School of Economics Share ownership in Instalco: 2,000 shares, 10,000 options (2023/2026), 10,000 options (2024/2027), 15,000 options (2025/2028). Robin Boheman, President and CEO, until 31 July 2025. Gustaf Larsson Ernefelt Head of M&A until 1 July 2025. Holdings as of 31 December 2025. Includes related party holdings, both natural and legal persons. Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman Corporate Governance Report Board of Directors » Management Guidelines for remuneration Other information Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 44Directors' Report – Management
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Proposed guidelines for remuneration to senior executives The Board of Directors proposes that the Annual General Meeting 2026 resolves on the following guidelines for salary and other remuneration to board members, the Chief Executive Officer and other members of company management (collectively "senior executives"). The guidelines shall apply to remuneration agreed upon, and changes made to already agreed remuneration, after the guidelines have been adopted by the Annual General Meeting 2026. The guidelines do not cover remuneration resolved by the General Meeting. The guidelines' promotion of the Company's business strategy, long-term interests, and sustainability A successful implementation of the Company's business strategy and the safeguarding of the Company's long-term interests, includ- ing its sustainability agenda, requires that the Company can recruit and retain qualified employees. To achieve this, the Company must be able to offer competitive remuneration. These guidelines enable senior executives to be offered a competitive total remuneration. Variable cash remuneration covered by these guidelines shall aim to promote the Company's business strategy and long-term interests, including its sustainability agenda. This is implemented by ensuring that the financial and non-financial targets that determine the out- come of variable cash remuneration have a clear link to the business strategy and the Company's sustainability agenda. Variable cash remuneration is described in more detail in the section "Variable cash remuneration" below. For more information about the company's business strategy, see the company's website (www.instalco.se). Forms of remuneration etc. The total remuneration for each senior executive shall be on market terms and may consist of the following components: fixed cash sal- ary, variable cash remuneration, pension benefits and other benefits. The General Meeting may, additionally – and independently of these guidelines – resolve on, for example, share and share-price related remuneration. Fixed and variable remuneration shall be related to the senior executive's responsibility and authority. Variable cash remuneration Fulfilment of criteria for payment of variable cash remuneration shall be measurable over a period of one year. The variable cash remuner- ation shall have a maximum limit and be related to the fixed salary, and may amount to a maximum of 50 percent of the fixed annual cash salary. The variable cash remuneration shall be linked to predetermined and measurable criteria that may be financial or non-financial. These may also consist of individualised quantitative or qualitative targets. The outcome in relation to these predetermined targets forms the basis for the total potential to receive variable cash remuneration. The criteria shall be designed so that they promote the Company's business strategy and long-term interests, including its sustainability agenda, by, for example, having a clear link to the business strategy or promoting the senior executive's long-term development. Once the measurement period for fulfilment of the criteria for payment of variable cash remuneration has ended, the extent to which the criteria have been fulfilled shall be assessed/determined. The Board of Directors is responsible for the assessment as regards variable cash remuneration to the CEO. As regards variable cash remuneration to other senior executives, the CEO is responsible for the assessment. As regards financial targets, the assessment shall be based on the financial information most recently published by the Company. Additional variable cash remuneration may be paid in extraordinary circumstances, provided that such extraordinary arrangements are limited in time and only made at the individual level either for the purpose of recruiting or retaining senior executives, or as compen- sation for extraordinary work efforts beyond the senior executive's ordinary duties. Such remuneration may not exceed an amount corresponding to 100 percent of the fixed annual cash salary and may not be paid more than once per year and per individual. Decisions on such remuneration for the CEO shall be made by the Board of Direc- tors based on a proposal from the Remuneration Committee. Deci- sions on such remuneration for other senior executives shall be made by the Remuneration Committee based on a proposal from the CEO. Pension and insurance For senior executives, pension benefits, including health insurance, shall be defined contribution plans. Variable cash remuneration shall be pensionable. Pension premiums for defined contribution pensions shall be no more than 35 percent of the fixed and variable annual cash salary. Other benefits Other benefits may include life insurance, health insurance and car benefits. Such benefits may total a maximum of 15 percent of the fixed annual cash salary. With regard to employment relationships governed by rules other than Swedish ones, appropriate adjustments may be made in respect of pension benefits and other benefits to comply with such manda- tory rules or established local practice, whereby the overall purpose of these guidelines shall be met as far as possible. For senior executives who are stationed in a country other than their home country, additional remuneration and other benefits may be paid to a reasonable extent, taking into account the special circum- stances associated with such foreign posting, whereby the overall pur- pose of these guidelines shall be met as far as possible. Such benefits may total a maximum of 20 percent of the fixed annual cash salary. Remuneration of board members in excess of board fees To the extent a non-employee Board member elected by the General Meeting performs work on behalf of the Company, in addition to the Board work, consultancy fees and other remuneration for such work Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman Corporate Governance Report Board of Directors Management » Guidelines for remuneration Other information Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 45Directors' Report – Guidelines for remuneration of senior executives 2025
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may be paid. Decisions regarding consultancy fees and other remu- neration to non-employee Board members elected by the General Meeting are made by the Board. Termination of employment Upon termination of employment, the notice period may be a max- imum of twelve months. The notice period shall normally be six months for the CEO and three to six months for other senior exec- utives. Upon termination by the senior executive, the notice period may be a maximum of six months, without the right to severance pay. Fixed cash salary during the notice period and severance pay may not, in aggregate, exceed an amount corresponding to the fixed cash salary for 18 months. In addition, compensation for any non-compete undertaking may be paid. Such compensation shall compensate for any loss of income and shall only be paid to the extent that the former senior executive is not entitled to severance pay. The compensation shall amount to a maximum of 100 percent of the fixed cash salary at the time of termination, unless otherwise stipulated by mandatory collective bargaining agreement provisions, and be paid during the period that the non-compete undertaking applies, which shall be a maximum of twelve months after the termination of employment. Salary and employment terms for employees In the preparation of the Board of Directors' proposal for these remuneration guidelines, the salary and terms of employment for the Company's employees have been taken into account, as information on the employees' total remuneration, the components of the remu- neration and the increase and growth rate of the remuneration over time have formed part of the Board of Directors' decision basis in evaluating the reasonableness of the guidelines and the limitations resulting from them. Decision process for establishing, reviewing and implementing the guidelines The Board has established a remuneration committee. The remu- neration committee's tasks include preparing the Board of Directors' decision regarding proposals for guidelines for remuneration to senior executives. The Board of Directors shall prepare a proposal for new guidelines at least every four years and submit the proposal to the AGM for decision. The guidelines shall remain in force until new guidelines have been adopted by the general meeting. The remuneration committee shall also monitor and evaluate pro- grammes for variable remuneration for the company management, the application of the guidelines for remuneration to senior execu- tives as well as the current remuneration structures and remunera- tion levels in the Company. The remuneration committee members are independent in relation to the Company and the Company management. When the Board of Directors considers and makes decisions on remuneration-related matters, the CEO or other members of the company management are not present, to the extent that they are affected by the matters. Deviating from the guidelines The Board of Directors may resolve to temporarily derogate from the guidelines, in whole or in part, if in a specific case there is special cause for doing so and a derogation is necessary to serve the Com- pany's long-term interests, including its sustainability agenda, or to ensure the Company's financial viability. As stated above, the remu- neration committee's duties include preparing the Board's decisions on remuneration matters, which includes decisions on derogations from the guidelines. Description of significant changes to the guidelines and how share- holder views have been taken into account The proposed guidelines are in all material respects consistent with the current guidelines. The Board of Directors has not received any views from shareholders on the current remuneration guidelines. Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman Corporate Governance Report Board of Directors Management » Guidelines for remuneration Other information Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 46Directors' Report – Guidelines for remuneration of senior executives 2025
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Other information Significant events after the end of the financial year Nothing to report. Employees and organisation Instalco has a decentralised and dedicated organisation for driving the business forward. At the end of the financial year, the number of employees amounted to 6,123, compared with 6,197 at the beginning of the financial year. Over the last 12-month period, the average num- ber of employees amounted to 6,042 (6,139). Research and development Instalco does not carry out its own research and development, except to a very limited degree. Activities subject to permit and notification Instalco’s operations are generally not subject to permit requirements for environmentally hazardous activities. In cases where there is a notification or permit requirement, the organisation in each country is responsible for handling the procedure. Sustainability Report The sustainability report has been prepared in accordance with the Swedish Annual Accounts Act (ÅRL) and has been expanded to meet the reporting requirements arising from the European Sustainability Reporting Standards (ESRS), the Corporate Sustainability Reporting Directive (CSRD) and the Taxonomy Regulation. The Board of Direc- tors is responsible for the sustainability report that has been pre- pared. The Group's sustainability report is found on pages 52–99, and forms part of the Directors' Report. Expected future performance Since it started in 2014, Instalco has grown by means of acquisi- tions, structured strategy implementation, and strong decentralised entrepreneurship. During the past year, focus has been on further strengthening the operational platform and profitability in existing operations. The Company’s strategy remains firm: to start, develop, and acquire companies in the installation and consulting industry, thereby creating long-term profitable growth. There is a strong underlying demand for Instalco’s services, especially within energy-efficient and resource-saving solutions. The short-term market outlook remains varied, with regional differences in demand and pricing. At the same time, there are signs of stabilisation in parts of the market. Demand for service is generally more resilient over the business cycle. The industrial segment is characterised by continued high investment activity linked to electrification and industrial transi- tion. The market is driven by long-term structural trends such as electri- fication, digitalisation, modernisation of an ageing property stock, and the need for increased energy efficiency. The green transition, investments in industry, defence, and critical infrastructure, as well as initiatives in healthcare and social care, contribute to a growing need for Instalco’s core offering. Trade and geopolitical conflicts currently have no direct impact on Instalco’s sales or purchases. However, indirect effects, such as supply chain disruptions or increased material costs, may affect indi- vidual projects or companies. The Company monitors developments closely and adapts operations as needed. For an overview of the Group’s financial position and financial devel- opment over the past five years, see pages 136–138. Proposed appropriation of profits The following retained earnings are at the disposal of the AGM (SEK 000s): Share premium reserve 1,389,517 Retained earnings -186,997 Profit (loss) for the year 174,865 1,377,385 The Board of Directors proposes that a dividend be paid of SEK 0.50 per share 134,222 carried forward 1,243,163 1,377,385 The Board of Directors has decided to propose to the AGM in May 2026 a dividend of SEK 0.50 per share (corresponding to approxi- mately 134 million SEK). The total dividend amount could change if the number of treasury shares changes, or the number of shares changes as a result of new share issues, prior to the dividend record date. At the closing date, the company’s holding of treasury shares amounted to 310,545, which reduces the total dividend amount by 0.2 million SEK. The proposed dividend corresponds to approximately 39 percent of the net profit for the year after tax. If the AGM votes in accordance with the Board’s dividend proposal, approximately 1,243 million SEK will be carried forward. The Board confirms that there is full coverage for the company’s restricted equity after the proposed dividend. The Board’s assessment is that the financial position remains strong after the proposed dividend and is sufficient for the company to be able to meet its obligations in both the short and long term and to have the scope to make any necessary investments. With reference to the above and other information that has come to the Board’s attention, it is the Board’s assessment that the proposed dividend is justified considering the demands that the nature, scope, and risks of the operations place on the size of the Parent Compa- ny’s and the Group’s equity, and on the Parent Company’s and the Group’s consolidation level, liquidity, and position in general. Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman Corporate Governance Report Board of Directors Management Guidelines for remuneration » Other information Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 47Directors' Report – Other information
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Business risks Description Management Projects The business is largely project-based with its main focus on projects between SEK 1 and 75 million in order value. Approx- imately 43 percent of the projects are conducted as fixed-price projects, and the remaining just over 57 percent on a time and material basis and other forms of remuneration and collaboration, such as service assignments. Incorrect calculations, lack of planning, execution and follow-up risk affecting the margin negatively. Instalco focuses primarily on medium-sized projects characterised by low risk, less competition than large projects and where the compet- itive factors are quality, long-term customer relationships and short lead times, rather than price. For larger and complex projects, steering groups are formed. The steering group’s task is to carry out risk analyses, monitor the project, share experiences and, if necessary, initiate concrete action pro- grammes and allocate the right resources. Larger projects often take place as Partnering projects with a cost-plus system to further limit the risk. Great focus is placed on the execution phase, project manager training and follow-up. Fixed-price projects place high demands on calculation, follow-up and project management. Through a clear authorization hierarchy, the risk of miscalculation is reduced. An important control activity is the Group’s monthly follow-up of ongoing projects with the aim of identify- ing and limiting risks. Customers and suppliers To be able to deliver the Group’s ser- vices, there is a dependency on suppliers fulfilling entered agreements, regarding for example volume, quality and delivery time. Incorrect, delayed or missing deliv- eries can have a negative impact on the Group’s financial position and results. Agreements with customers vary, among other things, regarding contract length, guarantees and limitations of liability. If customer and supplier relationships lack written agreements, it can create legal and financial uncertainty. The main customer groups are construction companies, industrial companies, real estate companies and the public sector. Instalco has approximately 2,000 customers and the five largest customers together account for approximately 14 percent of sales. Instalco has a broad risk distribution with respect to geographical pres- ence and customer segments. Customer and supplier relationships are often long-term and take place through the local companies in the local market. The Group has a central purchasing function that supports the compa- nies with agreements, which strengthens competitiveness. The decentralised governance model means that the Group’s compa- nies have good adaptability as decisions are taken quickly and close to the business. Every business is associated with risk. Instalco’s earnings and financial position, as well as its strategic position, are affected by a number of internal factors that Instalco has control over, as well as a number of external factors where its ability to influence the course of events is limited. Risk management Effective risk assessment reconciles Instalco’s busi- ness opportunities and earnings with the require- ments of stakeholders and other interested parties for stable, long-term value growth and control. When assessing Instalco’s future development, it is therefore important to consider various risks in the business as well as opportunities for growth. For obvious reasons, it is not possible to describe all risk factors, which is why an overall evaluation must also include a general environmental assess- ment. Instalco works on risk management at both a strategic and operational level. Risk management involves identifying, measuring, and preventing risks from materialising, along with continuously making improvements to reduce future risks. Instalco has policies, instructions, and manage- ment systems in place to prevent and counteract risks. The risk level in the business is systematically monitored at Board meetings where deviations or risks are identified and addressed. Uncertainties The Instalco Group operates in the Nordic market and has a decentralised structure where opera- tions are run in the individual entities, with a large number of customers and suppliers. Instalco’s earnings and financial position, as well as its strategic position, are affected by a number of internal factors that Instalco has control over, as well as a number of external factors where its abil- ity to influence the course of events is limited. The most significant external risk factors are the busi- ness climate and market situation combined with structural changes and the competitive situation. Macroeconomic factors such as inflation, volatility in the currency markets and interest rates can also affect demand, earnings and financial position. Ongoing trade and geopolitical conflicts currently have no significant direct impact on Instalco in terms of sales or purchases. Instalco is monitoring the situation closely and finds it currently difficult to assess the future impact of conflicts on the market and the economic cycle. The decentralised business model combined with diversification and geographical spread limit the aggregate business and financial risks. Risks and uncertainties Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman Corporate Governance Report Board of Directors Management Guidelines for remuneration Other information » Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 48Directors' Report – Risks and uncertainties
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Description Management Attracting and retaining skilled employees Instalco’s success is highly dependent on our ability to recruit, develop, motivate and retain qualified personnel. The ambition is to offer a competitive total remuneration, a workplace with interesting tasks, good leaders, short decision-making chains and opportunities for influence and development. Professional development is a priority and through the Instalco Acad- emy, we can attract and retain competent personnel and train future leaders. The Group has an apprenticeship system as well as courses and pro- grammes for certificates and other necessary skills. The Group’s regular employee surveys aim to find out how employees view their employer and work situation, and what can be improved and developed to maintain and increase commitment and job satisfaction. Liability, product liability and damages Risks that include liability, product liability and damages linked to Instalco’s projects and assignments for customers. Instalco has strong insurance coverage for the core business. The insurance covers, for example, damage to the company’s contract works, damage to property, business interruption, damage to third- party property and product liability. Structural changes Globalisation, digitalisation and rapid technological development are driving structural change within our customers’ businesses. Today’s new construction projects are characterised by an increasing use of technical systems and digitalisation such as online IT systems, alarm and security systems and systems for more efficient energy use, resulting in more complex installations. If the Group is unable to adapt to structural changes, there is a risk that the Group’s financial performance could weaken over time. Structural changes benefit actors like Instalco that have broad technical expertise. The companies keep themselves continuously updated and trained in the latest developments within their respective technical areas. Instalco applies best practice, which spreads successful concepts throughout the organization. Through the Instalco model, we can use our multidisciplinary expertise to coordinate projects across several technical areas, thereby facilitating the work for the client. Within Tech & Consulting, we can offer the customer a cutting-edge supplier, integration of project planning, technical execution and ser- vice, as well as services in automation. Cyber and information security risk Cyber and information security risk is an increasingly material operational risk with a constantly changing threat landscape. Security incidents, cyberattacks, data breaches and information leaks can have a direct impact on the Group’s business operations. To ensure stable IT environments and prevent incidents, Instalco conducts regular risk analyses as well as maintenance and review of IT security. With a large number of decentralised small and medium-sized compa- nies with local IT environments, the risk of individual incidents having a material financial effect on the Group is limited. Description Management Acquisitions and goodwill There is a risk that acquired companies do not live up to earnings expectations, or that there are risks associated with the acquired company’s relationships with customers, suppliers and key individuals. If companies with significant problems are acquired, for example regarding financial earnings capacity or important sustainability aspects, the Group’s repu- tation or financial performance could be compromised. There is a risk of goodwill impairment if a segment underperforms relative to the assumptions made at the time of valu- ation, and any impairment could have a negative impact on the Group’s financial position and earnings. Further risks associated with acquisitions include inte- gration risks and exposure to unknown obligations. Over the years, Instalco has made a large number of acquisitions. All potential acquisitions and their operations are carefully scrutinised with regard to legal, financial and sustainability aspects before the acquisition is carried out. There are well-established processes and structures in place for pricing and executing acquisitions, as well as for integrating new companies into the Group. In the contracts entered into, efforts are made to obtain the requisite guarantees to limit the risk of unknown obligations. Future risk is shared with the vendors through acquisition contracts that include additional contingent considerations. Acquiring multiple companies provides substantial risk diversification. Instalco has a unique model that enables the acquired companies to continue running their business in a larger context where they can also benefit from the coordination advantages that a larger Group can offer. The CEOs of the respective companies retain a large part of their influence, for example in terms of choosing projects, staff and custom- ers, but also have access to Instalco’s internal programmes to drive continuous improvements and spread best practice. A new board is appointed in all newly acquired companies, which are immediately introduced to Instalco’s financial and sustainability-related processes. Active board work takes place in every subsidiary in accord- ance with a Group-wide framework. All the companies are subject to monthly financial and continuous sustainability monitoring. Group-wide policies are implemented in material areas and an external whistleblowing system is established and available to all companies. Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman Corporate Governance Report Board of Directors Management Guidelines for remuneration Other information » Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 49Directors' Report – Risks and uncertainties
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Industry and market-related risks Description Management Macroeconomics and business cycle Economic fluctuations, inflation, changes in interest rates, changes in demand for housing, commercial properties and investments by industry and the public sector all affect the installation sector. Disruptions in logistics chains and higher raw material prices that cannot be com- pensated by increasing our own prices could affect the Group. Political decisions and instability affect the ability and propensity of existing and potential customers to invest. Demand for installation services is also affected by macroeconomic factors, outbreaks of pandemics and geopolitical conflicts that are beyond the Group’s control. Instalco operates in the Nordic market and has a decentralised struc- ture. The diversification of companies with a focus on various niche markets and additional sales of technical services, support and con- sumables make the Group less sensitive to economic fluctuations in individual industries, sectors or geographic areas. The business model limits the aggregate business and financial risks. Compared with the construction market, the market for technical installations and services is relatively less affected by the general economic situation. A large, and increasing, share of Instalco’s revenue comes from recurring, smaller assignments such as renovation and services, which are not affected by the number of new construction projects started. Furthermore, the flexible cost base allows rapid adjustments based on the market situation if needed. Contracts for installation services are often entered into early in a project’s develop- ment phase but carried out late in the project, which provides a good overview and the opportunity to plan operations well in advance. Instalco carefully monitors events that could have negative conse- quences as a result of macroeconomic and political factors that impact the market and economic situation. Instalco works on continuity plan- ning for the business on an ongoing basis, based on the potential con- sequences of various events. Instalco has a low level of dependence on individual customers and contracts but supports the subsidiaries with credit risk monitoring on an ongoing basis. By continuously acquiring companies in new niche markets, the Group can reduce market risks and better fend off economic fluctuations. Currently, Instalco has no significant direct exposure to trade and geo- political conflicts when it comes to sales or purchases. The risks related to war have not had a significant financial impact on the company’s performance, but this cannot be precluded in the future. Competitors The Group’s companies are active in industries that are exposed to compe- tition to a greater or lesser degree. Fur- thermore, consolidation in the industry could result in downward pressure on prices. Future competitive opportuni- ties depend on the ability to be at the forefront and react quickly to new market requirements. Increased competition, a reduced ability to manage new market requirements, or component shortages and long lead times could have a negative impact on the Group’s financial position and earnings. Instalco performs design, technical installation services, service, main- tenance of buildings and installations in Sweden, Norway and Finland, and offers comprehensive technical solutions in electrical, heating and plumbing, ventilation, industry and Tech & Consulting. The Group primarily focuses on medium-sized projects, which are typically low- risk and attract less competition than large projects. The competitive factors are quality, long customer relationships and short lead times, rather than price. By working closely with customers and in partnerships, know-how and competitiveness are continually developed. To reduce the competi- tive risk, the Group works consistently to ensure that collaboration between the companies is the most profitable sales strategy. Close collaboration with customers and suppliers allows us to plan for guaranteed delivery. Financial risks Description Management Liquidity risk Liquidity risk is the risk of not being able to meet the company’s payment obliga- tions in full or only being able to do so on significantly unfavourable terms due to a lack of cash. The responsibility for the Group’s financial transactions and risks is held centrally by the Parent Company, which operates in accordance with the Financial Policy adopted by the Board of Directors. Adequate payment readiness is to be ensured through agreed credit commit- ments. Excess liquidity is primarily used to repay outstanding loans. Financing risks Financing risks refer to the risk that the financing of the Group’s capital require- ments and the refinancing of outstanding loans will become more difficult or more expensive. In order to limit financing risk, the Group strives for an even maturity structure, a good liquidity reserve and diversified borrowing. This cre- ates the conditions for taking the necessary alternative capital-raising measures if required. The financing consists of long-term credit agree- ments that secure the financing of operations. In order to limit the refinancing risk, the procurement of long-term credit lines is initiated well in advance of the maturity of the credit line. Instalco has a central- ised approach to financing, which then finances the Group’s subsid- iaries in local currencies, both in and outside Sweden. A cash pool is established in the currencies SEK, NOK and EUR. The Group strives for a reasonable balance between equity, debt financing and liquidity so that the Group can secure financing at a reasonable cost of capital. Interest rate risks Interest rate risk refers to the risk that adverse changes in interest rates will have an excessive impact on the Group’s net financial position and results. Instalco has a centralised approach to the Group’s financing, with virtu- ally all external borrowing managed centrally through internal financ- ing by the subsidiaries. Instalco has well-established relationships with several Nordic financial institutions and strives for an even maturity structure of the external debt, a good liquidity reserve, and diversified borrowing. Continuous and frequent monitoring of the interest rate situation and continuous evaluation of the need to extend or repay existing loans is conducted. Currency risk Currency risk is the risk that changes in exchange rates will adversely affect the income statement, balance sheet and cash flow. Instalco’s exchange exposure policy is that the currency is not hedged. Financing is conducted in SEK, NOK and EUR, thereby reducing expo- sure in the respective currency. Credit and counterparty risks Credit risk is the risk that the counter- party to a transaction will not fulfil its financial obligations and that any collat- eral will not cover the company’s claim. All major customers are subject to credit checks. Due to the increased risk of bankruptcy in the industry, the Group has taken additional measures to intensify credit monitoring and strengthen credit manage- ment, even though credit losses have historically been low. Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman Corporate Governance Report Board of Directors Management Guidelines for remuneration Other information » Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 50Directors' Report – Risks and uncertainties
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Sustainability-related risks Description Management Climate and environment Changes in the climate and environment from global warming may entail various types of risks and have a negative impact on Instalco; for example, physical risks such as flooding can result from weather events and natural disasters. Extreme weather conditions can cause problems in the supply chain, which can lead to delays and disruptions. Economic risks include such things as resource short- ages, changes to environmental legisla- tion and tax legislation, and increased prices for materials and energy. Cur- rently, only a few suppliers are able to deliver data on carbon dioxide emissions, which may pose a risk to Instalco when compiling total emissions. Instalco’s operations and services have a limited direct environmen- tal impact, except for the Group’s transport requirements. A part of the vehicle fleet is powered by fossil fuels. Instalco makes extensive purchases of materials for its projects, and greenhouse gas emissions occur in the value chain for these materials. The Group is working to meet growing requirements and expectations for responsible and sustainable solutions in this area. Instalco assesses that the physical climate risks are relatively low and changes in the climate and envi- ronment do not pose a direct threat to our business in the immediate future, but could exist in the longer term. On the other hand, our resource-saving installations can make an important positive differ- ence, and we strive continually to further contribute to society in this regard. Complex climate reporting for materials to customers as well as increased reporting requirements around sustainability data may affect the business negatively if Instalco cannot provide the informa- tion from the suppliers. Instalco has a close dialogue with the supply chain regarding this area. Instalco’s transition risks are perceived to be limited as the company has a flexible and adaptable business. Compliance with regulations The installation industry is subject to extensive regulations, and it is of utmost importance for market confidence in Instalco that its work is carried out in accordance with current legislation and best practice. One basic requirement for all employees at Instalco is to comply with applicable environmental legislation, competition rules, labour legisla- tion, tax legislation, safety requirements, and other regulations that set the framework for the business. In addition to complying with laws and regulations, Instalco takes responsibility for maintaining high stand- ards of good business conduct in all of its business activities. This is described in Instalco’s Code of Conduct. The whistle-blowing function is in place to handle deviations linked to the Code of Conduct. Health and safety A high level of workplace safety is key to Instalco’s employees being able to carry out their work without risk of injury or accidents. Instalco’s goal is to ensure that no employee is exposed to risks that could cause physical or psychological injury. Preventive measures are implemented on an ongoing basis to ensure that no employee is exposed to risks in their own working environment. Technical equip- ment, including personal protective equipment, is tailored to each employee’s requirements. The internal Safe Employee programme addresses social aspects in the workplace as well as rules and routines to avoid physical injuries. Working conditions Instalco’s companies must comply with current labour legislation and provide attractive workplaces to safeguard employee wellbeing as well as Instalco’s reputation in the market. Assessing health and safety issues in the workplace is an integral part of Instalco’s business. The company offers a stimulating and safe work- ing environment with room for professional development based on business needs, as well as market-based and fair employment terms. Managers have the primary responsibility for creating a good working environment. The work is governed by Instalco’s Code of Conduct and supplemented by a whistle-blowing function that enables the reporting of suspected violations. Description Management Corruption Instalco is to be awarded assignments in accordance with applicable procurement regulations and based on sound business conduct. According to Instalco’s Code of Conduct, the company’s employees must never, directly or indirectly, offer, give or receive gifts, benefits or other forms of compensation for improper purposes. Instalco’s employees must furthermore follow the code of business conduct established by the Swedish Anti-Corruption Institute, which is a supple- ment to Swedish legislation. The Code of Conduct is signed annually by the subsidiaries. Suppliers and subcontractors Instalco requires its suppliers and sub- contractors to comply with the company’s Code of Conduct and other applicable legislation. In connection with supplier evaluation, Instalco’s suppliers and subcon- tractors must have a code of conduct accepted by Instalco, or, alter- natively, accept the principles in Instalco’s Code of Conduct. Violations of the code may lead to the business relationship with the relevant supplier being terminated. Instalco’s Code of Conduct for Suppliers provides suppliers with clear guidelines on how to act in joint projects. The Code of Conduct for Suppliers is valid for all suppliers with which Instalco has central agreements, without exception. Contents Introduction Strategy Operations Corporate Governance Comment from the Chairman Corporate Governance Report Board of Directors Management Guidelines for remuneration Other information » Risks Sustainability Statement Financial information Other information Instalco Annual and Sustainability Report 2025 51Directors' Report – Risks and uncertainties
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Sustainability Statement Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information
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Contents Introduction This sustainability report is the first that Instalco is preparing in accordance with the Corporate Sustainability Reporting Directive (CSRD) and the associated reporting framework, European Sustainability Reporting Standards (ESRS). This means that this year’s report is more extensive and detailed than in previous years, with higher requirements for trans- parency, comparability, and quality of the reported informa- tion. The report has also been subject to external review with reference to applicable regulations. The report is based on Instalco’s double materiality assess- ment, where material impacts, risks, and opportunities have been identified based on the Group’s operations, value chain, and through stakeholder dialogues. These form the basis for the sustainability reporting and can be found in the topic-spe- cific sections under the respective disclosure requirements. The reporting covers four material sustainability matters reported with reference to the corresponding standards: climate change, own workforce, workers in the value chain, and business conduct. Within these areas, material impacts, risks, and opportunities are reported along with associated actions, targets, and results. Throughout the report, ESRS codes are used as guidance to clarify the link to each disclo- sure requirement. The implementation of CSRD marks an important step in Instalco’s development towards more structured, trans- parent, and comparable sustainability reporting. The report forms the basis for long-term work to strengthen governance, target monitoring, and communication of the Group’s sustain- ability work. General disclosures 54 ESRS 2 General disclosures 54 Environmental responsibility 64 E1 Climate change 64 EU Taxonomy 72 Social responsibility 74 S1 Own workforce 74 S2 Workers in the value chain 84 Business conduct 87 G1 Business conduct 87 Appendix 92 ESRS Sustainability index 92 Datapoints derived from other EU legislation 94 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 53Sustainability Statement – Contents
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General disclosures ESRS 2 General disclosures BASIS FOR PREPARATION BP-1 General basis for preparation of sustainability statement The sustainability report constitutes Instalco’s statutory sustainability report in accordance with the Annual Accounts Act and has been prepared in accordance with ESRS. The report has been prepared on a consolidated level and follows the same consolidation principles as the financial reporting. An exception to the scope is the associated company Fabri, which currently does not have a material impact on Instalco’s sustainability outcome, whereby its operations have not been included in the reporting. In addition to its own operations, the report also covers material activities in the value chain both upstream and downstream. A general description of the value chain can be found under SBM-1 on page 59 and further clarifications are provided under the respective sustainability topic. Instalco has not utilised any exceptions regarding intellectual prop- erty rights, know-how or results of innovation deemed to be mate- rial from a sustainability perspective. Nor has Instalco applied any exemptions linked to ongoing development or ongoing negotiations. SPECIFIC CIRCUMSTANCES BP-2 Disclosures in relation to specific circumstances Time horizons In this report, short term is defined as less than one year, medium term as one to five years and long term as more than five years, in accordance with the time horizons specified in ESRS 1. Value chain estimation In the calculation of the climate impact in the value chain, all available Swedish Environmental Product Declarations (EPDs) have been used and linked to the corresponding products. For products where an EPD is still missing or where an existing EPD is not machine-reada- ble, the climate impact has been extrapolated based on comparable EPDs, which means that the method is based on actual product data and not on general templates. The limiting factor is thus that there are not yet EPDs for a large part of the product volume on the mar- ket, rather than a lack of data collection. The accuracy is assessed to be sufficient at present to provide a fair picture of the extent of the emissions, even if the degree of coverage is affected by the fact that EPDs are not available for all products. A step-by-step improvement process is underway in the industry where more suppliers are developing and publishing EPDs, which will successively increase the data quality. Instalco contributes to this development through ongoing dialogues and requirements towards suppliers and wholesalers to make more product data available. Changes in preparation or presentation of sustainability information For 2025, Instalco has transitioned to using ESRS as the reporting framework, which has resulted in significant changes to the report’s structure and content. 2025 is the first time that Instalco presents a complete sustainability report in accordance with CSRD. During the process of preparing this year’s report, Instalco has not identified any material errors in reported information in previous sustainability reports. The comparative figures for 2024 have been recalculated. For Scope 1 and Scope 2, Instalco has moved from basing calculations on extrapo- lated data from a sample of subsidiaries to using actual reported data from all subsidiaries for the 2024 financial year. The same methodology is applied for 2025. In connection with this, emission factors have also been updated as a result of the government decision on reduced reduction obligation for fuels, which affects residual mix and district heating. The updated emission factors had not been released at the time of publication of the annual report for 2024. The combined effect of the change in methodology and the updated emission factors is that the emission intensity in Scope 1 and Scope 2 for 2024 has increased by 0.25 tonnes CO2e/MSEK compared with the previously reported figure. The 2025 outcome is also affected by the new emission factors. The updated calculations reflect the most current and reliable infor- mation for the reporting period. Read more about Instalco’s emis- sions in Scope 1, Scope 2 and Scope 3 under E1-6 on pages 70–71. Incorporation by reference The following disclosures and datapoints have been incorporated by reference: Disclosure Page / Paragraph SBM-1 §40(b) Strategy, business model and value chain 114 / Financial information, Note 3 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement » General disclosures Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 54Sustainability Statement – General disclosures
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SUSTAINABILITY GOVERNANCE GOV-1 Role of the administrative, management and supervisory bodies Composition and diversity of the Board Instalco’s Board of Directors consists of seven members, one of whom is executive through their role in the management team. None of the members are workers’ representatives. Four of the board members have extensive experience from the industry, while the other three possess other relevant and significant experience that is considered to contribute to the Board’s collective expertise. All members have experience from other corporate boards. The gender distribution during the year amounted to 57 percent men and 43 per- cent women, calculated as an average. All non-executive members, a total of six people, are independent in relation to the company. During 2025, Instalco’s Board elected a new chairman from among its existing members, after the previous chairman took over as CEO for the Group. The previous chairman remains on the Board as a member, which means that the Board’s composition is unchanged compared to the previous year. Roles and responsibilities of the Board and management The Board of Directors has the overall responsibility for Instalco’s strategic sustainability work and for the supervision of material impacts, risks and opportunities (IROs) in the area of sustainability. Management is responsible for the operational sustainability work, while specific sustainability functions are responsible for the practi- cal implementation. The subsidiaries are responsible for integrating sustainability work into their respective operations, including in customer relationships, projects and services. The Board’s responsibility is reflected in its mandate to establish Group-wide sustainability targets, policies, principles and processes, including the implementation of the double materiality assessment and identification of material IROs. Management is responsible for putting the sustainability strategy into practice while the subsidiaries ensure that it is integrated into daily operations. This includes measuring, following up and reporting GHG emissions and other sustainability data in accordance with ESRS. The work is led by management via a central sustainability function to support the operational sustainability work at the subsidiaries. Feedback is provided regularly to the management team, the Audit Committee and the Board for follow-up and decisions. Sustainability work is closely linked to the company’s risk management processes and internal control systems, which means that specific procedures for the collection and quality assurance of sustainability data have been established and coordinated with other functions. In this way, it is ensured that the company’s management of IROs is characterised by both transparency and reliability. The Board and management exercise supervision over the establish- ment of sustainability targets and regularly monitor the subsidiaries’ progress towards these targets. This is done through follow-up in Board meetings and reporting of key performance indicators. The Board is also responsible for ensuring that the company’s sustainabil- ity report is prepared in accordance with CSRD and ESRS. Strategic choices, decisions and policies in the sustainability area are formulated by the Board and management with the customer’s needs in focus, based on their collective insight into the operations and what is assessed to be value-creating in the long term for both Instalco and its customers. Expertise and skills of the Board and management The Board of Directors of Instalco has a multifaceted composition with extensive experience and expertise in sustainability matters. Several members have specific skills in the area, while others pos- sess long experience of corporate management and board work in the construction sector and other industries. The Board is assessed to collectively have a broad knowledge of compliance matters and sustainability governance. Management has deep insight into the installation and technical consulting industry, where sustainability and energy efficiency are central focus areas. Management has been appointed with particular regard to specialist competence and works actively to promote a culture characterised by compliance and high quality in governance, reporting, and operational processes, in line with what is expected of a listed Group. Within the central organisation, there is also the sustainability func- tion, which consists of a sustainability council, a reference group with representatives from the subsidiaries for sustainability matters and a CSRD group, which together possess deep competence in energy effi- ciency, governance, work environment matters, reporting and other sustainability-related areas. Instalco also supplements this internal competence with external expertise through sustainability consult- ants for specific questions and selected areas. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement » General disclosures Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 55Sustainability Statement – General disclosures
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DUE DILIGENCE GOV-4 Statement on due diligence Core elements of due diligence Paragraphs in the sus- tainability statement Page Embedding due diligence into governance, strategy and business model GOV-2 56 GOV-3 56 SBM-3 62-63 Engaging with affected stakeholders in all key steps of due diligence GOV-2 56 SBM-2 60 IRO-1 61 S1-2 77 S2-2 85 Identifying and assessing negative impacts SBM-3 62-63 IRO-1 E1 61 IRO-1 G1 61 Taking actions to address these negative impacts E1-3 67 S1-4 79 S2-4 86 Tracking the effectiveness of these efforts and communicating it E1-4 68 E1-5 69 E1-6 70 S1-5 80 S1-6 80 S1-9 81 S1-10 81 S1-11 81 S1-13 82 S1-14 83 S1-15 83 S1-16 83 S1-17 83 INCENTIVE SCHEMES GOV-3 Integration of sustainability-related performance in incentive schemes Instalco has established remuneration guidelines for senior executives aimed at promoting the company’s business strat- egy, long-term interests, and sustainability work. The guide- lines enable senior executives to be offered a competitive total remuneration. A portion of the remuneration is variable and based on both financial and non-financial targets. These targets are directly linked to the company’s business strategy and sustainability agenda, which means that performance within relevant sustainability areas affects the outcome of the variable remuneration. The proportion of variable remu- neration that is dependent on sustainability-related targets is determined annually within the framework of the guidelines. Decisions on the terms of the incentive scheme are made and updated by the General Meeting, in accordance with the remuneration guidelines. GOVERNANCE INFORMATION GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies During the reporting period, the central sustainability func- tion has continuously reported to the audit committee and the management group on material sustainability matters, including identified IROs, for consideration and decision. The Board addresses sustainability matters at pre-determined occasions and, when necessary, as a separate agenda item during Board meetings. During the period, decision-mak- ing within the sustainability area has, among other things, included the establishment and revision of policies, the determination of the double materiality assessment, and other ongoing activities linked to the sustainability work and reporting with reference to CSRD. This process ensures that the Board and management group continuously receive relevant information to exercise over- sight of the company’s strategy, risk management, and major decisions, and that they can consider identified IROs in their decision-making. The identified IROs addressed during the 2025 financial year are reported under SBM-3 on pages 62-63. The establishment of targets, policies, and processes is thus linked to the sustainability work during the reporting period and aims to seize opportunities, mitigate risks, and counter- act negative impacts. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement » General disclosures Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 56Sustainability Statement – General disclosures
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RISK MANAGEMENT AND INTERNAL CONTROL GOV-5 Risk management and internal control over sustainability reporting The sustainability function and operational reporting functions constitute the first level of control in sustainability reporting. These functions are responsible for defining, implementing, following up, and evaluating controls. Instalco works actively to establish a framework for internal control for sustain- ability reporting, which includes preventive, investigative, and corrective controls. Preven- tive controls include instructions, definitions, and system measures. Investigative controls include analytical reviews and reasona- bleness assessments, such as analyses of deviations over time. The four-eyes principle is applied within several data flows, such as environmental data and during consolida- tion. Corrective controls may involve changes to systems or analytical methods. Three significant risk areas have been iden- tified: manual data processing, uncertainty among subsidiaries regarding what informa- tion to report, and a lack of documentation and formalisation of processes, which can lead to key-person dependency and vary- ing data quality. During 2025, work began on identifying and documenting internal controls within sustainability reporting and performing reasonableness assessments. Extensive work has also been initiated regarding clear definitions and training for reporting at subsidiaries. This is a continuous learning process for the entire organisation, with a particular focus on the subsidiaries. The work is ongoing, as Instalco intends to further clarify processes and strengthen internal control. The results of the risk assessment are continuously integrated into the sustainability reporting processes and form the basis for the development of rou- tines, system support, and division of respon- sibility. This ensures that identified risks are addressed in relevant operational functions and that internal control becomes an inte- grated part of the daily reporting process. Relevant risks and control activities are com- municated to the Board of Directors and the management. Risks identified in the annual quality assurance of the sustainability report are reported via the Audit Committee. The additional level of control consists of reviews by auditors, which are reported annually to the Board and management. STRATEGY, BUSINESS MODEL AND VALUE CHAIN SBM-1 Strategy, business model and value chain Instalco is an installation group in Northern Europe offering comprehensive technical solutions in elec- trical, heating and plumbing, ventilation, industrial, and Tech & Consulting. Through project design, installation, service, and maintenance, the Group contributes to more energy-efficient buildings and installations as well as reduced resource con- sumption in society. Examples of solutions offered include solar cells, heat pumps, ventilation, cooling systems, geothermal heating systems, LED sys- tems, and charging infrastructure, along with other technical measures for energy efficiency. The Group consists of over 150 local subsidiar- ies in the Nordic region, which together form a platform for long-term value creation. Instalco’s decentralised business model combines entrepre- neurship and customer proximity with Group-wide resources, expertise, and coordination. The sub- sidiaries drive the business close to the market, while the central organisation supports operations through functions such as procurement, sus- tainability, finance, business development, and communication. Instalco has a broad customer base that includes construction companies, property owners, indus- trial companies, mining companies, electricity and power companies, and the public sector. End-use areas include, among others, housing, schools, healthcare facilities, industrial installations, and the marine and fishing industries. Through the Group’s offering, Instalco supports customers in developing more sustainable and energy-efficient buildings and installations, both for new build and renova- tion. The operations thereby contribute to social benefit, reduced climate impact, and long-term value creation. Information on the number of employees per geo- graphical area is reported under S1-6, on page 80. The table below shows Instalco’s total revenue per sector, as defined in ESRS SEC 1. The figures are reconciled against Instalco’s reporting, pre- pared with reference to IFRS 8. For further infor- mation, see Note 3 on page 114 of the financial information. Geographical segment (IFRS 8) Revenue 2025 (MSEK) Share of Group revenue ESRS sector Sweden 9,635 71% CCE Rest of Nordics 3,963 29% CCE Total 13,598 100% CCE Contents Introduction Strategy Operations Corporate Governance Sustainability Statement » General disclosures Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 57Sustainability Statement – General disclosures
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Sustainability targets A key focus area of the sustainability work is the climate targets. Since 2024, Instalco has adopted the target of achieving net-zero emissions across the entire value chain by 2045 at the latest and reducing greenhouse gas emission intensity in Scope 1 and Scope 2 by 50 percent by 2030, using 2020 as the base year. In 2025, Instalco has contin- ued to implement actions according to the indus- try’s joint roadmap, "Roadmap for fossil-free com- petitiveness: Construction and Civil engineering", which the company signed in 2024. The climate tar- gets are consistent with the Paris Agreement’s goal to limit global warming to a maximum of 1.5°C. As of 2025, Instalco measures and reports GHG emissions in Scope 1, Scope 2 and Scope 3 according to the GHG Protocol as well as other sustainability data according to ESRS and Swedish legislation. Instalco is considering setting long-term and medium-term targets in the areas of social responsibility and governance as well. Currently, Instalco measures and reports around ten sustain- ability-related KPIs in the environmental, social, and governance areas. Sustainability strategy Instalco’s sustainability strategy focuses on inte- grating sustainability matters into its operations and the Group’s business model. This work is con- ducted through Group-wide frameworks, targets, and target monitoring, while responsibility and implementation are managed close to the opera- tions in the subsidiaries. The Group-wide sustainability programme, Sus- tainable Installations, is a core part of the strategy and comprises three focus areas: Sustainable installations (E), Safe and stimulating working environment (S), and Mature leadership (G). The programme creates a common structure for prioritisation, target monitoring, and reporting of sustainability work throughout the Group. It helps harmonise working methods among subsidiar- ies, enables comparable target monitoring, and ensures that sustainability matters are integrated into business decisions, project implementation, and leadership. Business model Instalco is a decentralised installation group that combines local entrepreneurship with the strength of a large group. The Group’s growth is largely based on strategic acquisitions of profitable companies with a strong market position. Instalco is a niche acquirer that focuses exclusively on quality companies. By bringing together newly acquired companies with existing companies within Instalco, everyone devel- ops through synergies and collaboration. Instalco wants to make it possible for its subsidiaries to grow stronger and maintain the entrepreneurial spirit that made them successful. Instalco’s profitability and focus on high margins are based on a strong Instalco Spirit and continu- ous improvement work through Instalco 2.0. Cont. SBM-1 Strategy, business model and value chain Contents Introduction Strategy Operations Corporate Governance Sustainability Statement » General disclosures Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 58Sustainability Statement – General disclosures
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End-user Client Production Energy Wholesalers Services Workers in the value chain Own workforce End-users of Instalco's installations ElectricalHeating & plumbingIndustrial Tech & ConsultingVentilation Waste & recycling Transportation Company cars Extraction of raw material Transportation Upstream Own operations Downstream Buildings, homes & industries Energy efficiency thanks to Instalco's installations Operational optimization Management Installation work Project planningInternal control Projecting Sales Value chain Instalco’s operations are based on a strong partnership with sup- pliers offering materials, components, and technical systems in the areas of electrical, heating & plumbing, ventilation, and other installation services. A significant part of the value chain involves purchasing and transport from suppliers, with emphasis on qual- ity, energy efficiency, and sustainability in the choice of materials. Instalco acts as an integrating actor that, through its subsidiaries, designs, installs and maintains technical solutions for buildings and infrastructure. The Group acquires and starts up locally strong companies and improves their capacity through common ways of working, professional development and synergies within project management, sustainability and digitalisation. Instalco’s customers are primarily construction and real estate companies, the public sector and industries. Deliverables include climate-smart and energy-efficient installations that contribute to reduced energy consumption and environmental impact. The long-term benefit for end-users results in a more resource-effi- cient and sustainable building and installation environment. Instalco’s material matters • Climate change mitigation • Climate change adaptation • Energy • Working conditions, its own workforce • Equal treatment and opportunities for all, its own operations • Corporate culture • Management of relationships with suppliers including payment practices • Corruption and bribery Instalco’s material matters • Climate change mitigation • Climate change adaptation • Energy • Corruption and bribery Instalco’s material matters • Climate change mitigation • Climate change adaptation • Energy • Working conditions, workers in the value chain • Equal treatment and opportunities for all, workers in the value chain • Other work-related rights, workers in the value chain • Management of relationships with suppliers including payment practices • Corruption and bribery Contents Introduction Strategy Operations Corporate Governance Sustainability Statement » General disclosures Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 59Sustainability Statement – General disclosures
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STAKEHOLDER PERSPECTIVE SBM-2 Interests and views of stakeholders Stakeholder expectations have been taken into account through the double materiality assess- ment and ongoing stakeholder dialogues. Their views are integrated into the development of targets, governance, and priorities, for example when establishing climate targets and working with social sustainability. The results of the dialogues influence both Group-wide strategies and the local operations of the subsidiaries. Instalco’s stakeholder groups consist of customers, other business partners, the capital market and media, employees, and new operations. Dialogues take place through personal meetings, customer projects, employee surveys, union cooperation, investor meetings, supplier assessments, industry initiatives and through the Group’s other commu- nication channels. The purpose is to ensure long- term value creation, understand expectations, and reduce risks. The results are used as a basis for strategy, risk management, and target formulation. The views and expectations of stakeholders form a basis for the development of Instalco’s strategy, business model, and sustainability work. Above all, customers, lenders, and institutional investors are increasingly demanding clear climate targets and transparency in sustainability work, which has influenced Instalco’s strategy development. One example is that clear climate targets were estab- lished during 2024 as a result of increased expec- tations from customers, lenders, and investors. Employees and subsidiaries have expressed the need for common tools and support within sus- tainability work, which has led to reinforced Group- wide processes and guidelines. The business model with decentralised responsibility remains, but is supplemented with reinforced common pro- cesses within sustainability and reporting. The central sustainability function reports reg- ularly to the Board and management regarding stakeholder dialogues and the risk management process. Sustainability matters are addressed by management, in Board Committees, and in the annual and sustainability report, which ensures that stakeholder perspectives are integrated into decision-making and governance. • Sales meetings • Construction meetings, physical and digital • Ongoing dialogue during projects • Evaluation meetings • Tenders Customers • Existing customers • Future customers Forms of dialogueStakeholder group • Physical and digital meetings • Ongoing dialogue during projects • Evaluation meetings Other business partners • Clients • Partnering contractors • Subcontractors • Suppliers • Individual meetings and interviews • Presentations, seminars, roadshows • Annual General Meeting • Press releases • Interim reports and annual report • Website • Social media Capital market and media • Existing and potential shareholders • Lenders • Analysts • Journalists • Meetings and conferences • Intranet • Employee survey • Business area meetings • Meetings within technical disciplines • The Instalco Academy and internal training • Employee performance reviews Employees • CEOs of subsidiaries • Existing employees • Future employees New operations • Acquisition candidates • Individual meetings and discussions Contents Introduction Strategy Operations Corporate Governance Sustainability Statement » General disclosures Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 60Sustainability Statement – General disclosures
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PROCESS FOR DOUBLE MATERIALITY ASSESSMENT IRO-1 Description of the process to identify and assess material impacts, risks and opportunities Instalco has conducted a double materiality assessment where the purpose of the analysis was to identify Instalco’s impact materiality, i.e. the Group’s impact on people and the environment, as well as Instalco’s financial materiality, which refers to how sustainability matters affect Instalco’s financial conditions. The analysis was conducted at Group level and covered the company’s own operations as well as relevant parts of the value chain, including subsidiaries, customers and suppliers. The process began with a review of the business context and identifi- cation of potential sustainability matters, based on Instalco’s opera- tions, value chain and relevant external factors. The underlying data comes partly from dialogues with a selection of the company’s key stakeholders, such as customers, suppliers, the capital market, lenders, subsidiaries and employees. It also comes from surveys with a selec- tion of stakeholder groups to identify the actual and potential negative and positive impacts of the sustainability matters, as well as risks and opportunities. The results were compiled and discussed in workshops with Instalco’s extended sustainability function. Following discussion and validation with the Board and management, the sustainability matters and relevant ESRS topical standards with associated disclo- sure requirements that were assessed as material were established. Impact materiality has been assessed based on the parameter severity, which consists of three levels to evaluate the scale, scope, and irremediable character of the impacts. For potential impacts, a fourth parameter is considered that takes into account the likelihood of the impact actually occurring. In the event of potential negative impacts on human rights, the severity of the impact is prioritised over its likelihood. Financial materiality has been assessed based on the likelihood of each risk or opportunity occurring and the magnitude of the potential financial effects on Instalco’s development, financial position, earn- ings, cash flow, access to finance or cost of capital. Both impact materiality and financial materiality have been assessed based on internally defined parameters and thresholds. Each impact, risk, and opportunity has resulted in an aggregate score, where the highest scores have been assessed as material. Sustainability matters are integrated into Instalco’s overall govern- ance and risk management and constitute a central basis for sus- tainability reporting. The work is an ongoing process that is contin- uously integrated into the business and is reviewed annually and updated as needed. As this is the first year Instalco reports its double materiality assessment, there is no data from previous years to take into account. The identified material topics at Instalco are E1 climate change, S1 own workforce, S2 workers in the value chain, and G1 business conduct. On the following page, under SBM-3, a summary of the identified material impacts, risks, and opportunities (IROs) is presented. Detailed information and in-depth descriptions of each IRO are reported under the associated disclosure requirements in the report’s topic-specific sections. Instalco has chosen to apply the phase-in provision in ESRS 2 and therefore does not disclose anticipated financial effects during the first reporting year, which applies to E1-9. Non-material Material Financial materiality Impact materiality Non-material Material E2 – Pollution E3 – Water and marine resources E4 – Biodiversity and ecosystems E5 – Resource use and circular economy S3 – Affected communities S4 – Consumers and end-users E1 – Climate change S1 – Own workforce G1 – Business conduct S2 – Workers in the value chain Contents Introduction Strategy Operations Corporate Governance Sustainability Statement » General disclosures Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 61Sustainability Statement – General disclosures
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MATERIAL IMPACTS, RISKS AND OPPORTUNITIES SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Type of IRO Upstream Own operations DownstreamTime horizon E1 CLIMATE CHANGE Climate change mitigation GHG emissions Actual negative impact Short, medium and long term Environmental certification systems Actual positive impact Short, medium and long term Climate change adaptation Demand for climate-adapted solutions Opportunity Short, medium and long term Extreme weather in the supply chain Risk Long term High proportion of fossil fuel-powered vehicles Risk Medium and long term Energy Demand for energy-efficient solutions Opportunity Short, medium and long term Energy consumption Actual negative impact Short, medium and long term Energy-efficient installations Actual positive impact Short, medium and long term S1 OWN WORKFORCE Working conditions Workplace accidents Risk Short, medium and long term Safe working environment Actual negative impact Short, medium and long term Fair employment conditions Actual positive impact Short, medium and long term Equal treatment and opportunities for all Professional development and career opportunities Opportunity Short and medium term Gender equality Actual negative impact Short, medium and long term Contents Introduction Strategy Operations Corporate Governance Sustainability Statement » General disclosures Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 62Sustainability Statement – General disclosures
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Type of IRO Upstream Own operations DownstreamTime horizon S2 WORKERS IN THE VALUE CHAIN Working conditions Working conditions at suppliers Potential negative impact Short, medium and long term Equal treatment and opportunities for all Equal treatment and non-discrimination in the supply chain Potential negative impact Short, medium and long term Other work-related rights Human rights in the value chain Potential negative impact Short, medium and long term Work on a voluntary basis Potential negative impact Short, medium and long term G1 RESPONSIBLE BUSINESS CONDUCT Corporate culture Compliance Risk Short, medium and long term Management of relationships with suppliers including payment practices Supplier relationships Potential negative impact Short and medium term Corruption and bribery Corruption and bribery Potential negative impact Short, medium and long term Internal control Risk Short and medium term Cont. SBM-3 Material impacts, risks and opportunities Contents Introduction Strategy Operations Corporate Governance Sustainability Statement » General disclosures Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 63Sustainability Statement – General disclosures
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Environmental responsibility ESRS E1 – Climate change MATERIAL IMPACTS, RISKS AND OPPORTUNITIES SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model The table describes Instalco’s material impacts, risks and opportunities related to climate change. Identified IRO Type of IRO Description Climate change mitigation GHG emissions Instalco’s primary GHG emissions occur in the value chain, mainly through the production and transport of work materials and the products installed in construction and reno- vation projects. In addition to this, there are emissions from its own operations through the use of service vehicles, energy consumption, travel, and waste management. Environmental certification systems Instalco participates in many projects where properties are built to be certified according to various certification systems, which means that the environmental work and environmental performance are reviewed by a third party. By delivering sustainable installations, Instalco contributes to the buildings achieving the desired rating for the certification. Climate change adaptation Demand for climate-adapted solutions The increased technical complexity in properties and society’s growing need for climate-adapted solutions drive an increased demand for Instalco’s services. The green transi- tion and the extensive industrial investments in the Nordic region further reinforce the need for energy-efficient installations and sustainable systems. Extreme weather in the supply chain Extreme weather can cause delays or disruptions in the supply chain, which can impact Instalco’s ability to deliver projects on time and may affect costs and customer relationships. High proportion of fossil fuel-powered vehicles A large proportion of the vehicle fleet consists of vehicles powered by fossil fuels, which can lead to increased costs and business risks given stricter climate requirements, rising fuel prices and changing customer expectations. Energy Demand for energy- efficient solutions High energy prices, energy shortages and increased environmental awareness are driving demand for energy-efficient solutions. New EU directives, such as the EPBD, EED, RED III and the requirement for Zero Emission Buildings, are leading to increased demand for energy efficiency and renewables. This creates a growing market for Instalco’s installations and technical systems across all business areas. Energy consumption Instalco’s solutions contribute to increased energy efficiency for customers. At the same time, the installation work involves energy consumption, including through transport, service vehicles and the company’s premises. The technical systems and products procured and installed also require energy during manufacturing, installation and operation. Energy-efficient installations Instalco helps customers reduce their energy consumption and environmental impact through, among other things, resource- and energy-efficient project design, installations and service of solar cells, heat pumps, geothermal heating systems, heat exchangers, cooling systems, LED lighting, charging stations and sprinkler systems. By replacing older systems with modern technology, customers can lower their energy consumption and resource use, which contributes to more sustainable buildings and installations. Actual negative impact Actual positive impact Opportunity Risk Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures » Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 64Sustainability Statement – Environmental responsibility
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TRANSITION PLAN E1-1 Transition plan for climate change mitigation Instalco has begun the work of developing a transition plan for climate change mitigation, which will be gradually completed with refer- ence to ESRS. Since the vehicle fleet accounts for a significant portion of the Group’s Scope 1 emissions, Instalco has, as a first step in the transition plan, conducted a review and revision of the Group’s car policy, which will be gradually updated to further promote fossil-free fuels. This is part of the work to reach Instalco’s climate targets, as described under E1-4 on page 68. The climate transition is integrated into the Group’s overall strategy, sustainability pro- gramme, and risk management. The transi- tion work focuses on reducing environmental impact throughout the value chain. In its own operations, this primarily involves gradually reducing the use of fossil fuels, increasing energy efficiency, and promoting the transi- tion to fossil-free energy sources. Since the absolute majority of emissions are in Scope 3, great importance is simultane- ously placed on collaboration and impact, through dialogue and setting requirements for suppliers, as well as providing advice to help customers choose more sustainable solutions. Instalco has Group-wide policies and guidelines that the subsidiaries follow, while implementation takes place within the operations. Investments linked to the climate targets occur primarily within vehicles, energy systems, and data collection for follow-up according to the GHG Protocol. These invest- ments support the implementation of the transition plan and are expected to gradually increase the share of taxonomy-aligned capital expenditure. The identification and measurement of Scope 3 GHG emissions also enable targeted investments and other actions aimed at reducing environmental impact throughout the value chain. Based on available information, Instalco has not been excluded from any EU benchmarks. Cont. SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model As an installation group, Instalco operates in an industry with both direct and indirect climate-impacting factors, from the largest, which is the installed products purchased through the supply chain, to greenhouse gas emissions related to energy consumption, transport, and fossil fuel vehicles in its own operations. At the same time, the growing demand for energy-efficient and environmentally certified solutions constitutes a significant opportunity for the Group to contribute to the transition towards a more sustainable society. Instalco helps customers reduce their environmental footprint through modern project design and installations. The focus is on energy efficiency and lower energy consumption through long-term and sustainable solutions. Instalco has also identified risks linked to climate change; these are related to impacts on the supply chain due to extreme weather and the con- tinued use of a high proportion of fossil fuel vehicles in the operations. For more information on the process for identifying and assessing IROs, see IRO-1 on page 61. During 2025, Instalco has not yet carried out any full climate change resilience analysis or associated climate scenario analysis. The Group plans to evaluate the possibility of conducting such analyses in the coming years. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures » Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 65Sustainability Statement – Environmental responsibility
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POLICIES RELATED TO CLIMATE CHANGE E1-2 Policies related to climate change mitigation and adaptation In 2025, Instalco updated the Group-wide Sustainability Policy, which constitutes the overall steering document for the company’s sustain- ability work. The policy covers four material sustainability matters: environment, own workforce, workers in the value chain and busi- ness conduct. Within the environmental area, priority is given to work on reducing environmental impact and strengthening the Group’s climate resilience, with a particular focus on GHG emissions from the value chain, resource efficiency and the transition to climate-smart installations. The policy applies to the entire Group, and covers both its own operations and the parts of the value chain where Instalco has an actual impact: upstream in the purchase of products and services, and downstream in the execution of installation projects. Affected stakeholder groups include employees, subsidiaries, custom- ers, suppliers and other collaboration and business partners. The Board of Directors and the CEO have overall responsibility for the policy, while the respective executives at the subsidiaries are responsible for local application and target monitoring with the support of central resources. The policy is available internally via the intranet and is communicated during introductions and annual reviews. It is published on Instalco’s website and serves as a govern- ing framework for sustainability work throughout the value chain. Annual follow-up of the policy takes place through the double materi- ality assessment, measurement of Scope 1, Scope 2 and Scope 3 GHG emissions, internal control and through dialogue with stakeholders. The policy is based on the following frameworks: • UN Guiding Principles on Business and Human Rights • The Ten Principles of the UN Global Compact • OECD Guidelines for Multinational Enterprises • OECD Due Diligence Guidance for Responsible Business Conduct • ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy The policy is linked to and manages several identified material impacts, risks and opportunities in Instalco’s double materiality assessment, including GHG emissions, energy consumption and mix and the demand for climate-adapted and energy-efficient solutions. Instalco also has a Group-wide Purchasing Policy that covers the sup- plier tier and sets requirements that all purchases contribute to the Group’s sustainability aspects and climate targets. Like the Sustain a- bility Policy, the Purchasing Policy has been established by Instalco’s Board of Directors and applies to the entire Group. The policy is sup- plemented by Instalco’s Code of Conduct for Suppliers, which is further described under S2-1 on page 85 and under G1-1 on pages 88-89. As a supplement to the Sustainability Policy and Purchasing Policy, Instalco plans to develop a Group-wide instruction for fossil-free energy contracts. The purpose is to ensure that all subsidiaries use electricity from renewable sources, in line with Instalco’s sustaina- bility targets. The instruction is intended to serve as an operational steering document for the procurement and monitoring of electricity contracts, as well as contribute to increased consistency and trans- parency in the Group’s climate work. Through these steering documents, it is ensured that climate-re- lated requirements are integrated throughout the value chain and that suppliers are expected to contribute to reduced emissions and increased resource efficiency. Together, the steering documents constitute a framework for how Instalco, through its subsidiaries, works to reduce its environmental impact, manage climate risks and contribute to the transition towards a fossil-free construction and installation sector. In developing the Group’s policies, Instalco has based them on estab- lished practice and internal assessments. No formal process for con- sultation with specific identified stakeholders has been carried out. Policy/governance document Sustainability Policy Purchasing Policy Purpose Constitutes the overarching governance document for Instalco’s sustainability work and guides the Group in reducing climate impact, strengthening climate resilience and integrating sustainability aspects throughout the value chain. Ensures that purchasing and supplier relation- ships support the Group’s ESG goals and climate strategy, and that suppliers comply with the code of conduct. Scope Applies to the entire Group. Covers the areas of environment, own workforce, workers in the value chain and business conduct. Applies to the entire Group. Covers the supplier tier and upstream value chain. Highest decision- making level Established by the Board of Directors. The CEO and senior executives in the subsidiaries are responsible for local application. Established by the Board of Directors. Monitor- ing and follow-up are carried out by the Group management. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures » Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 66Sustainability Statement – Environmental responsibility
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ACTIONS RELATED TO CLIMATE CHANGE E1-3 Actions and resources in relation to climate change policies In 2024, Instalco began the work of measuring and monitoring the Group’s climate impact within Scope 1 and Scope 2. As of 2025, climate reporting also includes Scope 3, where calculations have been carried out retroactively for 2024 to provide a comprehensive picture of the Group’s total GHG intensity. As climate reporting is still under development, the Group has not currently established any specific or formalised actions in accordance with the ESRS requirements for all Scopes. Through the ongoing work, however, several areas with significant action needs and priorities have been identified, which form the basis for the initiatives and plans described below. To limit environmental impact, several initiatives are underway, including increasing the proportion of electric and plug-in hybrid vehicles in the vehicle fleet, introducing delivery plans, and using so-called transport hubs to coordinate transport to construction sites. Electrification of the vehicle fleet is prioritised, as the majority of Scope 1 GHG emissions stem from the use of diesel and petrol. Through collaboration and advice to customers as well as require- ments for suppliers, Instalco’s subsidiaries contribute to energy-ef- ficient installations with reduced environmental impact over the entire life cycle. In the operational work, climate benefits are com- bined with requirements for cost-efficiency and safe production. In this way, the climate transition is integrated into the daily project operations and in Instalco’s market offering. A central part of the actions is the collaboration with priority suppliers. Through joint initiatives, solutions are developed that both reduce energy consumption for the end-user and reduce climate-impacting emissions in installation logistics and material flows. This contributes to strengthening the climate performance in the value chain and supports the implementation of the Group’s climate-related initiatives in line with policies and targets. All subsidiaries also work to sign fossil-free electricity agreements to minimise Scope 2 GHG emissions. These actions constitute cen- tral decarbonisation levers and are expected to gradually reduce the GHG intensity in the operations. The resources allocated to implement the actions primarily consist of investments in electrified vehicles and charging infrastructure, costs for the transition to fossil-free energy, and administrative resources for monitoring, reporting, and training. The work to further develop and systematise the Group’s actions is ongoing, including through the preparation of a transition plan in line with Instalco’s Sustainability Policy. To operationalise the Sustainability Policy, Instalco runs the Group- wide sustainability programme, Sustainable Installations, which constitutes a central part of the Group’s climate-related govern- ance. This area is monitored annually at Group level to ensure that strategic targets are put into practice. Instalco’s environmental work aims to contribute to climate-smart and energy-efficient installations that reduce customers’ environ- mental impact. A central part is the certification system Sustaina- ble Instalco Project, which ensures that sustainability aspects are considered in a certified project. The certification includes criteria for work safety, transport, climate benefit, recovery, waste sort- ing, and service via sustainability contracts. The system serves as a concrete tool for reducing environmental impact in installation projects while contributing to increased quality, transparency, and compliance with the Group’s sustainability governance. Sustainable Instalco Project is a stamp of quality for both the customer and the performing subsidiary. KPI Electric and plug-in hybrid vehicles OUTCOME 2025 47% DESCRIPTION Electric and plug-in hybrid vehicles in the Group’s fleet 0 10 20 30 40 50 25242322 % KPI Sustainable Instalco Project OUTCOME 2025 489 DESCRIPTION Projects certified as Sustainable Instalco Projects 0 100 200 300 400 500 2524232221 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures » Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 67Sustainability Statement – Environmental responsibility
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CLIMATE CHANGE TARGETS E1-4 Targets related to climate change mitigation and adaptation Instalco has established an absolute climate target and an intensity target for climate change mitigation. The targets cover the entire Group, including subsidiaries and relevant parts of the value chain, and are consistent with the Paris Agreement’s limitations of global warming to 1.5°C and the construction and civil engineering sector’s joint roadmap for fossil-free competitiveness. Progress towards the targets is monitored through annual report- ing of the Group’s total emissions in Scope 1, Scope 2, and Scope 3, and is calculated with reference to the GHG Protocol guidelines. Monitoring is based on both absolute emissions (tons CO e) and emission intensity. The intensity target is a gross target, which means that progress is measured based on actual emission reduc- tions within the Group's own operations without including carbon offsets. The net-zero target, on the other hand, is a net target that can include residual emissions that are neutralised through remov- als or offsetting measures. For 2025, a larger proportion of renewable energy has been used compared to the previous year. Instalco has also reduced energy consumption in 2025 compared to the previous year, which is in line with the Group’s ongoing work on energy efficiency programs and the transition towards fossil-free energy solutions. More information on Instalco’s energy consumption and mix is described under E1-5 on page 69. Scope 1 GHG emission intensity has decreased compared to the previous year, which is due to reduced use of diesel vehicles and increased use of electric cars. The reported number of kilometres driven by electric cars has increased by 50 percent from the previ- ous year. More subsidiaries have also specified the origin of their electricity consumption, leading to reduced GHG emission intensity in Scope 2. Instalco’s Scope 3 GHG emission intensity has increased by 2 per- cent compared to 2024. The change is mainly explained by updated EPDs from suppliers of air handling units. The new EPDs report a lower environmental impact in the production stage (phases A1-A3), which has contributed to a reduction in Scope 3.1 (purchased goods and services). At the same time, a slightly higher environmental impact is reported in the use stage (phase B6) over the product’s life cycle, which has resulted in an increase in Scope 3.11 (use of sold products). In addition, a larger proportion of products with an environmental impact in phase B6 were acquired compared to the previous year, which further contributed to the increase in Scope 3.11. More information about Instalco’s GHG emissions is described under E1-6 on pages 70-71. PERIOD TARGET TARGET VALUE SCOPE BASE YEAR VALUE OUTCOME 2025 2024–2045 Net-zero greenhouse gas emissions across the entire value chain 0 tCO e (net) The entire Group including relevant parts of the value chain in upstream and downstream 684,950 tCO e (market-based method) 688,489 tCO e 2020–2030 Reduction of GHG emission intensity in Scope 1 and Scope 2 by 50 percent 0.55 tCO e/MSEK The entire Group 1.10 tCO e/MSEK 1.07 tCO e/MSEK Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures » Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 68Sustainability Statement – Environmental responsibility
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ENERGY CONSUMPTION AND MIX E1-5 Energy consumption and mix ACCOUNTING PRINCIPLES The reported energy consumption covers the entire Group’s operations, including all subsidiaries, leased vehi- cles and premises under operational control. Non-renewable sources Energy consumption from non-renewable sources includes fossil fuels used in Instalco’s operations, such as diesel and petrol for vehicles, natural gas for heating of premises and electricity purchased from non-renewable sources. Only energy for which the Group has operational control and can verify consumption is included. Renewable sources Energy consumption from renewable sources includes electricity, district heating and any renewable fuels used in the operations of subsidiaries and the Group’s vehicle fleet, provided that the origin can be documented. Only energy with a clearly documented renewable origin is classified as renewable. If the origin of the energy cannot be verified, it is reported as non-renewable according to a conservative accounting method. Energy consumption from a high climate impact sector To enable comparability and monitoring of energy intensity within operations in high climate impact sectors, Instalco has used NACE Rev. 2.1, the EU’s industrial classi- fication system, to indicate sector affiliation. The Group’s main activities are classified as NACE code 43.2 Electrical installation, plumbing and other construction installation activities. The information reported relates to the entire Group’s energy consumption and forms the basis for the calculation of energy intensity. ENERGY (MWh) 2025 2024 % Fuel consumption from coal and coal products – – – Fuel consumption from crude oil and petroleum products 40,074 45,146 -11 Fuel consumption from natural gas – – – Fuel consumption from other non-renewable sources – – – Consumption from nuclear power 1,598 1,311 22 Consumption of purchased or acquired electricity, heat, steam, and cooling from non-renewable sources 1,880 2,142 -12 Total non-renewable energy consumption 43,551 48,599 -10 Share of fossil sources in total energy use 76% 81% -5 pp. Share of non-renewable sources in total energy consumption (%) 79% 83% -4 pp. Fuel consumption from renewable sources (including biomass, biogas, waste from non-fossil fuels, renewable hydrogen etc.) 1,119 775 44 Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources 10,345 8,983 15 Consumption of self-generated renewable non-fuel-based energy – – – Total renewable energy consumption 11,463 9,758 17 Share of renewable sources in total energy consumption (%) 21% 17% – Total energy consumption (MWh) 55,015 58,358 -6 Energy intensity per net revenue Energy intensity from high climate impact sector (MWh/MSEK) 4.05 4.26 -5 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures » Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 69Sustainability Statement – Environmental responsibility
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GROSS GHG EMISSIONS E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 2025 % change previous year % change base year Targets1) GHG EMISSIONS (tCO2e) Base year 2020 2024 2030 Net zero 2045 Scope 1 GHG emissions Gross Scope 1 GHG emissions 6,527 14,886 13,226 -11 103 – – Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) 0 0 0 – – – – Scope 2 GHG emissions Location-based gross Scope 2 GHG emissions 490 1,026 1,132 10 131 – – Market-based gross Scope 2 GHG emissions 1,317 1,521 1,368 -10 4 – – Total GHG emissions, Scope 1 and Scope 2 Total GHG emissions (location-based) 7,017 15,912 14,358 -10 105 – – Total GHG emissions (market-based) 7,844 16,407 14,594 -11 86 – Net zero Significant Scope 3 GHG emissions Total indirect gross Scope 3 GHG emissions N/A 668,473 673,895 1 N/A – – • Category 1. Purchased goods and services N/A 212,828 198,558 -7 N/A – – • Category 11. Use of sold products N/A 445,596 465,860 5 N/A – – • Category 12. End-of-life treatment of sold products N/A 10,050 9,477 -6 N/A – – Total GHG emissions Total GHG emissions (location-based) N/A 684,385 688,253 1 N/A – – Total GHG emissions (market-based) N/A 684,880 688,489 1 N/A – Net zero GHG EMISSIONS PER NET REVENUE (tCO2e/MSEK) Total GHG emissions (location-based) per net revenue, Scope 1 and Scope 2 0.99 1.16 1.06 -9 7 – – Total GHG emissions (market-based) per net revenue, Scope 1 and Scope 2 1.10 1.20 1.07 -10 -2 0.55 – Total GHG emissions per net revenue, Scope 3 N/A 48.70 49.56 2 N/A – – Total GHG emissions (location-based) per net revenue N/A 49.86 50.61 2 N/A – – Total GHG emissions (market-based) per net revenue N/A 49.90 50.64 1 N/A – – 1) More information about Instalco's climate targets is described under E1-4, on page 68. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures » Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 70Sustainability Statement – Environmental responsibility
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ACCOUNTING PRINCIPLES The calculations of GHG emissions follow the GHG Protocol and cover all majority-owned subsidiaries. Instalco takes responsibility for the total emissions from these companies, including the portion originating from minority-owned shares, in order to ensure comprehensive climate responsibil- ity within the Group. Reporting for Scope 1 and Scope 2 is done via a consoli- dation system, which enables central quality assurance, comparability, and the compilation of historical data on the companies’ emission-generating activities. Scope 3 is calculated on a quantity basis using purchasing data and emission factors from EPDs. Scope 1 and Scope 2 – Direct and indirect emissions Scope 1 includes the Group’s direct emissions from fuel consumption in owned or leased vehicles. Scope 2 includes indirect emissions from purchased energy, including electricity, district heating, and district cooling in leased premises, as well as electricity for charging the Group’s vehicles. Data for Scope 1 and Scope 2 is collected via the Group’s financial systems and is based on actual consumption per unit. Reporting is carried out according to both location-based and market-based methods, where measures such as the transition to electric vehicles and fossil-free electricity contracts gradually reduce emissions. Emission factors for Scope 1 and Scope 2 are based on official sources such as the Swedish Energy Agency, the Swedish Energy Markets Inspectorate, Vattenfall, and Energiföretagen. These sources are used to ensure up-to-date, geographically relevant, and methodologically correct emission factors for the energy consumed within the Group. Residual mix, district heating, and the reduction mandate are calculated using 2024 emission factors, as updated factors have not yet been published. Scope 3 – Value chain emissions Together with an external climate expert, Instalco has carried out a process to identify and assess which Scope 3 categories are material. The assessment was based on the GHG Protocol’s guidance and included an analysis of the Group’s value chain, operational structure and the emission sources that are most significant within the installation and construction industry. Each Scope 3 category was evaluated based on estimated emission potential, data availability and relevance to the Group’s operations and stakeholders. The result is that three categories have been classified as most material for Instalco: 3.1 Purchased goods and services, 3.11 Use of sold products and 3.12 End-of-life treatment of sold products. These categories have been prioritised as they account for by far the largest part of the Group’s climate impact in the value chain and are therefore the most relevant for reporting. The calculations are quantity-based and built on purchasing data as well as emission data from EPDs. Extrapolation is used where EPD data is missing to estimate the Group’s total climate impact in the value chain. Uncertainties and degree of coverage When calculating climate impact, there is a certain amount of uncertainty linked to data and reporting methods among suppliers. This includes variations in reporting of product life cycle and methodological choices in climate declara- tions. To ensure comparability and continuity, Instalco has applied standardised adjustments and assumptions when calculating emissions. For the following Scope 3 categories, the methodology for calculating climate impact has not yet been established, which means that the basis and method need to be developed before these emissions can be included in the reporting. • Category 2 – Capital goods • Category 3 – Fuel- and energy-related activities • Category 4 – Upstream transport and distribution • Category 5 – Waste generated in operations • Category 6 – Business travel • Category 7 – Employee commuting • Category 8 – Upstream leased assets • Category 9 – Downstream transport and distribution For the following Scope 3 categories, Instalco has assessed that the environ- mental impact is non-material: • Category 10 – Processing of sold products. Instalco does not sell products that undergo further industrial processing at the customer. • Category 13 – Downstream leased assets. Instalco does not lease out assets to customers. • Category 14 – Franchises. Instalco does not conduct any franchise operations and no subsidiaries are organised as franchises. • Category 15 – Investments. Instalco does not have a business model where investments in portfolio companies or financial assets generate material climate emissions. GHG REMOVALS E1-7 GHG removals and GHG mitigation projects financed through carbon credits Instalco currently has no GHG removals or mitigation projects of its own and does not finance any external projects through carbon credits. INTERNAL CARBON PRICING E1-8 Internal carbon pricing Instalco does not apply any internal carbon pricing scheme. During the first reporting year under ESRS, Instalco has applied the phase-in option in ESRS 1, and therefore omits all disclosures under E1-9. Cont. E1-6 Gross Scope 1, 2, 3 GHG emissions and total GHG emissions Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures » Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 71Sustainability Statement – Environmental responsibility
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In addition to the statutory sustainability reporting, Instalco is cov- ered by the EU Taxonomy, which aims to define and classify sustaina- ble economic activities. The Taxonomy makes it easier for investors to compare sustainable investments and supports the EU’s environmen- tal goals and the ambitions of the Paris Agreement. The reporting requirements are increasing gradually and contribute to increased transparency in sustainability work. The Energy Performance of Build- ings Directive (EPBD) and the Energy Efficiency Directive (EED), which are closely aligned with Instalco’s operations, also have an impact on the ongoing energy reporting. For the 2025 reporting year, Instalco will apply the new simplifica- tions that entered into force on 1 January 2026 where relevant, while the reporting will show which activities are covered or excluded respectively, according to the materiality principle. This adaptation is intended to ensure that the report complies with the regulations and remains manageable. Taxonomy-eligible activities Activities covered by the EU taxonomy for Instalco primarily include installation, maintenance, and repair of technical systems in build- ings, as well as professional services related to the energy perfor- mance of buildings. These activities are found within the construction and installation sector and refer to measures for energy efficiency, electrification, and the integration of renewable energy. The identifi- cation of taxonomy-eligible activities was carried out through a review of the Group’s service offering and project portfolio in relation to the activities defined in the EU Climate Delegated Act. Taxonomy-aligned activities Instalco has identified that all activities covered by the taxonomy con- tribute to the objective of Climate change mitigation (CCM). Below is a list of these activities along with a brief description of the boundaries and approach applied: • 7.3 Installation, maintenance, and repair of energy efficiency equipment includes for Instalco energy-efficient light sources (light sources with an EU energy rating, excluding fittings or light sources integrated into fittings), air conditioning systems (domestic units with an EU energy rating), water heating systems (water heaters and storage tanks with an EU energy rating, excluding peripheral equipment), and kitchen and bathroom mixer taps. Calculations are based on turnover related to installation of individual included products. Products in the light sources, air conditioning systems, and water heating systems categories that do not have an EU energy rating have not been included in the data. • 7.4 Installation, maintenance, and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) includes for Instalco all projects and parts of projects where charging boxes for electric vehicles have been installed. Calculations are based on turnover related to charging boxes and all enabling materials and services. • 7.5 Installation, maintenance, and repair of instruments and devices for measuring, regulation, and controlling energy perfor- mance of buildings includes for Instalco all projects and parts of projects relating to automation, measurement, regulation, and con- trol of equipment that impacts energy use. Calculations are based on turnover related to all relevant products and services linked to the specified categories. • 7.6 Installation, maintenance, and repair of renewable energy technologies includes for Instalco all projects and parts of projects where the installation of solar cell systems, solar panels, energy storage, and heat pumps has been carried out. Calculations are based on turnover related to all relevant products from the speci- fied categories and all enabling materials and services for these. • 9.3 Professional services related to energy performance of build- ings includes for Instalco all turnover from consulting services for projects directly related to the energy performance of buildings (for example, energy consultation, energy simulations, energy meas- urements). Other technical consultation with an indirect connection to the energy performance of buildings has not been included. Do No Significant Harm (DNSH) Climate change adaptation Physical climate risks are considered on an ongoing basis within the framework of the Group’s risk manage- ment work. In connection with the assessment of compliance with the DNSH criteria, relevant climate risks have been analysed based on the business’s geographical presence and operational conditions. Sustainable use and protection of water and marine resources N/A Transition to a circular economy N/A Pollution prevention and control The criteria for pollution prevention and control refer to EU chemical legislation, including the REACH Regulation and its candidate list of substances of very high concern. Instalco complies with applicable EU rules regarding chemical content in materials and products and ensures that prohibited or restricted substances are not used in its own operations. Protection and restoration of biodiversity and ecosystems N/A Minimum safeguards The criteria for minimum safeguards have been assessed at Group level. Instalco ensures compliance through Group-wide policies, guidelines and routines in relevant areas. These include, among other things, human rights and labour law as well as anti-corruption. No part of the Group’s operations is linked to the production of or trade in controversial weapons. Nuclear energy-related and fossil gas-related activities Instalco does not carry out, fund or have exposure to research, devel- opment or installations regarding nuclear energy-related or fossil gas-related activities. EU Taxonomy Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures » Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 72Sustainability Statement – Environmental responsibility
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Proportion of turnover, capital expenditure and operational expenditure derived from products and services associated with taxonomy-eligible economic activities and are taxonomy-aligned – disclosures covering the year 2025. Financial year: 2025 Breakdown by environmental objective for taxonomy-aligned activities Central perfor- mance indicator Total Proportion of taxonomy- eligible eco- nomic activities Taxonomy- aligned eco- nomic activities Proportion of taxonomy- aligned eco- nomic activities Climate change mitigation Climate change adapta- tion Water Circular economy Pollution Bio- diversity Proportion of enabling activity Proportion of transitional activity Non-assessed activities considered non-material Taxonomy-aligned eco- nomic activities during the previous financial year (2024) Proportion of taxono- my-aligned economic activities during the previ- ous financial year (2024) MSEK % MSEK % % % % % % % % % % MSEK % Turnover 13,598 6.8% 877 6.5% 6.5% – – – – – 100% – – 823 6.0% Capital expend- iture 432 11.1% 46 10.6% 10.6% – – – – – 100% – – 47 11.4% Operational expenditure 351 2.9% 10 2.8% 2.8% – – – – – 100% – – 9.4 2.6% Capital expenditure (CapEx) Relevant KPI: Capital expenditures Financial year: 2025 Environmental objective for activities aligned with the taxonomy requirements Economic activity Code Proportion of capital expendi- tures covered by the taxonomy requirements Capital expendi- tures aligned with the taxonomy requirements Proportion of capital expendi- tures aligned with the taxonomy requirements Climate change miti- gation Climate change adaptation Water Circular economy Pollution Biodiversity Enabling activities Transitional activity Share of alignment with taxonomy requirements of the share covered by tax- onomy requirements % MSEK % % % % % % % E T % Installation, maintenance and repair of energy efficiency equipment CCM 7.3 1.0% 4.3 1.0% 1.0% – – – – – Yes – 1.0% Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) CCM 7.4 0.6% 2.8 0.6% 0.6% – – – – – Yes – 0.6% Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings CCM 7.5 5.7% 24.6 5.7% 5.7% – – – – – Yes – 5.7% Installation, maintenance and repair of renewable energy technologies CCM 7.6 2.9% 12.4 2.9% 2.9% – – – – – Yes – 2.9% Professional services related to the energy performance of buildings CCM 9.3 0.3% 1.5 0.3% 0.3% – – – – – Yes – 0.3% Installation, maintenance and repair of energy efficiency equipment CCM 7.3 0.5% Installation, maintenance and repair of renewable energy technologies CCM 7.6 0.0% Summary of alignment per environmental objective – – – – – Total capital expenditures 11.1% 45.6 10.6% 10.6% – – – – – – – 10.6% Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures » Environmental responsibility Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 73Sustainability Statement – Environmental responsibility
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Social responsibility ESRS S1 – Own workforce MATERIAL IMPACTS, RISKS AND OPPORTUNITIES SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model The table below presents Instalco’s material impacts, risks and opportunities related to its own workforce. Own workforce includes all blue-collar and white-collar workers, both employees and non-employees, who perform work for the Group under employment-like conditions. This also includes contractors, subcontractors and agency staff who temporarily support the operations. The use of agency staff is limited and occurs primarily to manage variations in resource needs and demand in the projects. Identified IRO Type of IRO Description Working conditions Workplace accidents Accidents or work-related injuries can result in serious consequences for workers’ health and well-being, while also causing increased costs for sick leave, rehabilitation, and insurance. A lack of a safe working environment can also lead to project delays, reduced productivity, legal consequences, and a negative impact on Instalco’s reputation and attractiveness as an employer. Safe working environment Instalco’s employees work daily on construction sites where there are risks associated with working at heights, machinery, manual labour, and transport. Despite the company’s zero vision and systematic safety work, accidents of various degrees occur, which has a negative impact on employees’ health and safety. Fair working conditions By offering secure employment terms, fair pay, and respect for bargaining agreements and freedom of association, Instalco can create a stable and attractive working environment. This strengthens employee engagement and well-be- ing and reduces the risks of inequality and uncertainty. Consistent work with good working conditions increases long- term capacity to work and helps the company attract and retain competent employees. Equal treatment and equal opportunities for all Professional devel- opment and career opportunities Through investments in apprenticeship programmes, further education and professional development, Instalco can secure the availability of skilled labour in an industry with high demand. This strengthens the Group’s competitive- ness, contributes to lower recruitment costs and increased productivity. In the long term, a more stable skills supply is created that supports both growth and profitability. Gender equality Instalco operates in a traditionally male-dominated industry where women are underrepresented. The uneven gender distribution risks hindering equality and diversity, which limits inclusion and perspectives in the business. Despite active efforts to increase the proportion of women through recruitment and professional development, an uneven gender representation remains. Actual negative impact Actual positive impact Opportunity Risk Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility » Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 74Sustainability Statement – Social responsibility
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Cont. SBM-3 Material impacts, risks and opportunities and their relationship to strategy and business model Description of Instalco’s own workforce Instalco has used the following definitions of employees and non-employees: • Employees include all employees who have direct employment within the Group. This also includes apprentices, who are employees prac- tically learning the trade and working under the supervision of an experienced professional. • Non-employees refers to personnel who perform work for Instalco without direct employ- ment within the Group, such as sub-contractors, self-employed individuals and personnel hired from staffing agencies. Instalco works actively to identify and manage actual and potential impacts, risks, and opportuni- ties affecting its own workforce. Negative impacts, such as deficiencies in a safe working environment or lack of gender equality, are managed through preventive measures, training and continuous fol- low-up. Risks of workplace accidents are handled in a corresponding manner through structured work environment efforts and preventive measures. At the same time, the Group works to create positive impacts through fair terms of employment, profes- sional development and career opportunities that strengthen engagement and long-term compe- tence supply. These positive effects are relevant in all countries and regions where Instalco operates. Instalco assesses that the risk of forced labour or child labour in its own operations is low. The Group operates primarily in the Nordic region, where the labour market is strictly regulated and bargain- ing agreements are common. Some indirect risk may exist among non-employees, such as foreign subcontractors, as well as in the supply chain when purchasing materials and components originating from outside Europe, which is managed through requirements in the Supplier Code of Conduct as described under S2-1 on page 85 and under G1-1 on pages 88–89. In addition to risks linked to human rights, Instalco also assesses health and safety risks within its own workforce. The risk level varies depending on work tasks and the working environment. Employees and non-employees working on construction and installation sites generally face a higher risk of work-related incidents and physical injuries, while white-collar workers who mainly work in offices have a significantly lower risk exposure. The risk assessment is based on the type of work task, working environment and industry standards and forms the basis for the Group’s health and safety efforts, training and preventive measures. The Group does not normally split the personnel into specific groups based on, for example, age, geography or function. Therefore, the material IROs are linked to the workforce as a whole. One exception, however, applies to gender equality, where women as a group are affected by the tra- ditionally male-dominated industry structure. This can limit diversity and inclusion and is specifically monitored within the framework of the Group’s work on equal opportunities. For more information on the process for identify- ing and assessing IROs, see IRO-1 on page 61. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility » Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 75Sustainability Statement – Social responsibility
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POLICIES RELATED TO OWN WORKFORCE S1-1 Policies related to own workforce Instalco has established policies that regulate responsibilities, expec- tations and rights for its own workforce. The Group’s Code of Conduct and Sustainability Policy are supplemented by a revised Personnel Policy, which was implemented during 2025 and is applied through- out the Group. Together, these documents set out guidelines for the working environment, diversity and equality, alcohol and drug issues, employee benefits and the Group’s stance against work-related crime and irregularities. The policies explicitly renounce and counteract all forms of forced labour, child labour and human trafficking. To ensure that the policies are known and followed throughout the organisation, all governing documents are available to employees via the Group’s intranet. For non-employees working in projects, rele- vant parts are communicated at the start of the project. The Code of Conduct for employees and the Sustainability Policy are also publicly available on Instalco’s website, which ensures that external parties can review the Group’s expectations and commitments. A central starting point is that all employees shall have a safe, secure, and inclusive working environment. Instalco conducts health and safety work that encompasses both physical and psychosocial aspects, where respectful treatment, cooperation, and preventive measures are emphasised.The vast majority of the subsidiaries are covered by bargaining agreements and follow national labour law. The Group also ensures that employees can engage in trade union organisations without risk of negative consequences. The Group works to counteract discrimination on all statutory grounds, including gender, gender identity or expression, ethnicity, religion or other beliefs, disability, sexual orientation, and age. The policies emphasise that all employees shall have equal opportunities for career and professional development, and that gender equality and diversity shall be considered during recruitment, skills supply, and setting salaries. Specific measures are directed towards groups at risk of being disadvantaged, such as adjustments to the working envi- ronment when necessary and salary progression. To protect employees and enable the detection of irregularities, Instalco has established a whistleblower function that forms part of the Group’s policies. The whistleblower function is described in more detail under G1-1 on page 89. Internationally recognised principles and frameworks Just like the Sustainability Policy, Instalco’s Code of Conduct for employees is based on the following internationally recognised princi- ples for responsible business conduct: • UN Guiding Principles on Business and Human Rights • The Ten Principles of the UN Global Compact • OECD Guidelines for Multinational Enterprises • OECD Due Diligence Guidance for Responsible Business Conduct • ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy. These frameworks constitute the fundamental starting point for the Group’s work on human rights, working conditions, and responsible conduct throughout the value chain. Policy/governance document Sustainability Policy Personnel Policy Code of Conduct for employees Purpose Establishes the Group’s overall guidelines and principles for sustainability, including work environment, human rights, diversity, equality and social responsibility. Clarifies the Group’s guidelines and expectations in areas such as diversity and equality, work environment, alcohol and drugs, employee benefits as well as counteracting work-related crime and irregularities. Clarifies the employee’s responsibility and expectations for professional, respectful and responsible conduct, including compliance with human rights, working conditions, work environment, inclusion and ethical conduct. Scope Applies to the entire Group. Covers both employees and non-employees who perform work for the Group. Applies to the entire Group and covers all employees. Covers both employees and non-employees who perform work for the Group. Highest decision- making level Determined by the Board of Directors. The CEO and executives in the subsidiaries are responsible for local application. Determined by the Group management and reported to the Board of Directors. Determined by the Board of Directors. The CEO and execu- tives in the subsidiaries are responsible for local application. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility » Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 76Sustainability Statement – Social responsibility
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PROCESSES FOR ENGAGEMENT WITH ITS OWN WORKFORCE S1-2 Processes for engagement with own workforce and workers’ representatives about impacts Instalco ensures that its own workforce’s perspective is considered in decisions and actions concerning actual and potential impacts on employees. Employee satisfaction and engagement are measured annually through the Employee Net Promoter Score (eNPS) as well as through ongoing dialogues, providing a basis for continuous improve- ments in the working environment, working conditions and profes- sional development. Engagement within its own operations primarily occurs via the respective officers at the subsidiaries, who are responsible for the dialogue with their employees, sometimes with the support of local HR, the finance manager or administrative staff. The dialogue is supplemented through trade union cooperation, for example through co-determination in working life, the Land Formation Act and the Work Environment Act, which ensures influence, participation and systematic work environment management. Operational work can be delegated to project managers, supervisors or lead installers, who have direct contact with installers who are covered by bargaining agreements. Communication channels include the intranet, employee surveys, digital training, physical meetings and conferences, sup- ported by the Group’s organisational model. Diversity and equality are integrated into daily work to ensure equal opportunities for all employees. Efforts to increase the representa- tion of women and promote diversity are driven both within the subsidiaries and in collaboration with external actors such as schools, employer organisations and vocational boards. Fundamentally, communication and dialogue are based on Group- wide policies and training tools. Instalco continuously evaluates the effectiveness of engagement with its own workforce and adjusts working methods and policies based on the results from employee surveys, training and operational feedback from the subsidiaries. This ensures that the employees’ perspectives and needs are integrated into the Group’s choices and strategic decisions. KPI Employee satisfaction OUTCOME 2025 31 (eNPS) DESCRIPTION Employees who are satisfied with their work situation overall (eNPS) KPI Gender distribution OUTCOME 2025 7.2% 92.8% DESCRIPTION Women and men in the Group, respectively 0 20 40 60 80 100 2524232221 Women % Men (2024: 31, 2023: 30) Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility » Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 77Sustainability Statement – Social responsibility
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PROCESSES AND CHANNELS FOR RAISING CONCERNS S1-3 Processes to remediate negative impacts and channels for own workforce to raise concerns Instalco’s processes for preventing and managing negative impacts are governed by Group-wide policy documents, training initiatives and manage- ment routines in the subsidiaries. In the event of work-related injuries or other negative impacts, the respective subsidiary carries out an incident investigation in accordance with both local and Group-wide health and safety processes. The pur- pose of these measures is also to provide remedy for any negative impacts for affected employees. The investigation results in corrective and pre- ventive actions, ensuring that remediation occurs in accordance with established procedures. The effectiveness of these actions is continuously eval- uated through feedback from projects, dialogue with workers’ representatives and follow-up in the subsidiaries. To enable employees to raise concerns and needs, several channels are available, including incident and accident reporting via the nearest manager, project manager, supervisor or workers’ represent- ative, recurring employee surveys and the whistle- blower function. Instalco regularly follows up on reported incidents, accidents and whistleblowing matters to ensure that the reporting channels function as intended. Effectiveness is evaluated, among other things, through feedback in projects, dialogue with work- ers’ representatives and follow-up in the respective subsidiary. To increase awareness and trust in these processes, employees are informed about them via Group-wide training, such as Safe Employ- ees, as well as through the Code of Conduct and the Personnel Policy. Each executive in the subsid- iaries is also responsible for ensuring that health and safety matters are handled correctly and that employees have access to and feel confidence in the reporting structures. As part of further strengthening safety work, Instalco is a member of the industry initiative Håll Nollan, which contributes to developing safety work on construction sites nationally, spreading best practice and reducing the risk of accidents for the own workforce in all project phases. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility » Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 78Sustainability Statement – Social responsibility
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ACTIONS RELATED TO THE OWN WORKFORCE S1-4 Taking actions on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions Safe working environment and workplace accidents Instalco works to prevent workplace accidents through procedures for risk assessment, safety inspections, and incident reporting in every project. The central efforts to strengthen the physical and social working environment are established in the Sustainability Policy, the Personnel Policy, and the Code of Conduct for employees, which are described in more detail under S1-1 on page 76. As a complement to the policies, Instalco has the Safe Employees initiative, which is a mandatory introduction course conducted at the start of projects certified as Sustainable Instalco Projects under the focus area Safe and stimulating working environment. The course covers social conditions at the workplace, safety routines, and pre- ventive work to minimise physical injuries and strengthen the social working environment. In the event of workplace accidents, an investigation into the causes is conducted, followed by corrective actions and follow-up aimed at preventing similar incidents from occurring again. The process includes dialogue with affected employees and collaboration with workers’ representatives. In addition to work-related injury preven- tion, Instalco invests in training, leadership support, and skills devel- opment to strengthen the safety culture and working environment awareness throughout the organisation. Instalco ensures that the Group’s business practices do not cause or contribute to negative impacts on its own workforce by integrating working environment requirements into all project and procurement processes. Health and safety are always prioritised over time and cost requirements, and the subsidiaries’ management systems govern planning, staffing, and workload to counteract hazardous working conditions. Supervisors and project managers have the mandate to stop or reschedule work in the event of identified risks, in line with Safe Employees and the Group’s zero vision for accidents. Gender equality Instalco operates in a male-dominated sector and therefore works actively to increase the proportion of women in the organisation. Efforts include recruitment, professional development, and salary setting, with the goal of ensuring equal conditions and the ambition of strengthening women’s establishment in the industry. To attract more women, Instalco collaborates, via its subsidiaries, with schools, vocational boards and employer organisations. Instalco views gender equality as a prerequisite for long-term skills supply, good working conditions and a sustainable business. In identified cases of unequal conditions or perceived inequality, individual actions are taken within the framework of Instalco and its subsidiaries’ HR processes. The gender equality work is followed up through recurring KPIs on gender distribution, which are described under S1-9 on page 81. Fair employment conditions Instalco ensures fair employment conditions by following bargaining agreements, offering clear employment contracts and applying com- mon procedures for benefits and personnel management. The Group also emphasises the right to freedom of association and secure employment without the risk of negative consequences. Identified deficiencies are handled through dialogue, correction of conditions and follow-up in accordance with national legislation. Follow-up takes place via employee dialogues, internal controls and recurring employee surveys that capture questions on safety, conditions and job security. Professional development and career opportunities Instalco offers long-term development opportunities through initia- tives such as the Instalco Academy, apprenticeship programmes, and other training. The Instalco Academy includes, among other things, leadership training, financial training and role-specific professional development, while apprenticeship programmes ensure a skills pipeline and access to future employees. These efforts strengthen employability, motivation, and retention, while also meeting the Group’s long-term competence needs. By offering clear career paths, continuous professional develop- ment, and a positive corporate culture, Instalco strives to create the conditions for a long-term skills pipeline and a balanced employee turnover. The work is followed up through relevant key performance indicators described under S1-13 on page 82. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility » Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 79Sustainability Statement – Social responsibility
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TARGETS RELATED TO OWN WORKFORCE S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities On an annual basis, the Group follows up on a number of key performance indicators that together serve as indicators of development within the areas of health and safety, equality and skills development. These KPIs include employee satis- faction, perceived development opportunities, the number of apprentices, participation in the Instalco Academy, sickness leave, and workplace accidents, and are presented through- out the report. However, Instalco has not established any time-bound and outcome-oriented targets linked to the material IROs for its own workforce. The Group is reviewing the conditions for developing formalised targets linked to this area in the long term. Monitoring of KPIs takes place continuously in the subsidi- aries and is compiled centrally. The process for establishing these currently does not involve any structured consultation with the own workforce or their representatives. Employee surveys, health and safety inspections and feedback from the project organisations do, however, contribute important input that in practice influences how the Group prioritises its efforts. ACCOUNTING PRINCIPLES The social reporting covers all permanent employees in Instalco’s own workforce in all majority-owned subsidiaries, which include all countries where Instalco operates as these fulfill the criterion of at least 50 employ- ees or at least 10 percent of the Group’s total number of employees. Instalco uses the employment definitions that apply according to the leg- islation in each respective country where the Group operates. This means that national definitions for different forms of employment are applied at the country level before the data is aggregated to the Group level, regard- less of differences in national legislation. Data regarding temporary employees, non-guaranteed hours employees and the gender labels ’other’ and ’not specified’ are not covered by Instalco’s current data collection and are therefore not reported in this year’s report. Employee data is reported as of the balance sheet date on 31 December 2025, while metrics affected by changes over time, such as employee turn- over, are based on the average number of employees during the year. Employee turnover is calculated as the number of employees who left the organisation during the year, divided by the average number of employ- ees during the same period. The number includes both employees who resigned voluntarily and the number who were terminated, retired or deceased. CHARACTERISTICS ON THE UNDERTAKING’S EMPLOYEES S1-6 Characteristics on the undertaking’s employees Number of employees, gender 2025 2024 Men 5,683 5,711 Women 440 434 Total 6,123 6,145 Employee turnover 2025 2024 Total number of terminated employments 981 961 Employee turnover 15.8% 15.3% Number of employees, country 2025 2024 Sweden 4,255 4,201 Norway 1,102 1,222 Finland 766 722 Total 6,123 6,145 During the first reporting year under ESRS, Instalco has applied the phase-in option in ESRS 1, and therefore omits all disclosures under S1-7 and S1-8. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility » Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 80Sustainability Statement – Social responsibility
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DIVERSITY METRICS S1-9 Diversity metrics Number of women Share of women Top management 2025 2024 2025 2024 Group management, including extended management team 2 1 22% 13% CEO in subsidiaries 6 8 4% 5% Employees by age group 2025 Under 30 years 25% 30–50 years 49% Over 50 years 26% REPORTING PRINCIPLES The definition of top management at Instalco includes the Group management and the Extended manage- ment team. The Group management, led by the CEO, consists of the CFO and the VP Sustainability. The Extended management team includes the Country Manager Sweden, Country Manager Norway, Country Manager Finland, COO Sweden, President Tech & Con- sulting and Business Area Manager, and the Head of IR. From 1 January 2026, Instalco will introduce a new management structure where the Extended manage- ment team will be phased out and all functions will be part of a consolidated Group management. This change will affect reporting starting from 2026. CEOs of the subsidiaries are also included in the summary, as gender equality is a material matter for the Group. By including these positions, the report provides a more complete picture of gender equality within the Group’s leading positions. SOCIAL PROTECTION S1-11 Social protection All employees within Instalco’s Nordic operations are covered by social protection, either through public systems or through collective bargaining agreements, supple- mented by insurance provided by the com- pany. This protection covers loss of income in the event of illness, workplace accidents, unemployment, acquired disability, parental leave, and pension. During the first reporting year under ESRS, Instalco has applied the phase-in option in ESRS 1, and there- fore omits all disclosures under S1-12. ADEQUATE WAGES S1-10 Adequate wages In addition to the bargaining agreements that regulate the industry’s minimum wages and conditions, Instalco’s subsidiaries apply internal guidelines for pay ranges that ensure market-based and fair wages for all employees. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility » Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 81Sustainability Statement – Social responsibility
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METRICS FOR TRAINING AND SKILLS DEVELOPMENT S1-13 Training and skills development metrics During the first reporting year under ESRS, Instalco has applied the phase-in option in ESRS 1 regarding S1-13. This means that information on training hours is not reported broken down by gender, and the proportion of people who participated in regular performance and career development reviews is currently not reported at all. Instalco offers its employees continuous training and skills devel- opment as a natural part of their work to ensure a long-term skills supply. The central platform for this is the Instalco Academy, which prepares future leaders, enables internal career changes and ensures that employees have the right skills for their roles. The training is adapted to different occupational groups. Lead install- ers receive training in project collaboration, risk management, com- munication and contract law. Project managers are trained in project management, project economics, procurement, work environment and presentation techniques. Business leaders are offered in-depth training in business acumen, customer relations, sustainability and sales, while training for service managers focuses on planning and creating added value for the customer. Financial staff and business leaders are offered courses that strengthen the understanding of profitability and economic relationships. Through the Instalco Acad- emy, Instalco builds a strong corporate culture, develops future leaders and creates good conditions for long-term success. The Group takes social responsibility through its industry-unique apprenticeship programme, which also serves as a tool for long-term skills supply and recruitment of new talent. The programme is an integrated part of the business and helps to ensure the availability of qualified employees over time. Instalco collaborates with high schools and vocational training providers to ensure that students receive relevant training, access to the latest technology and the opportunity for internships in real projects. KPI Development opportunities OUTCOME 2025 69% DESCRIPTION Employees who feel that they have been offered development opportunities 0 20 40 60 80 2524232221 24232221 % KPI Apprentices OUTCOME 2025 507 DESCRIPTION Apprentices in the Group 0 100 200 300 400 500 2524232221 2423222120 KPI The Instalco Academy OUTCOME 2025 208¹ DESCRIPTION Employees who participated in the Instalco Academy 1) Corresponds to 6,880 training hours. 0 100 200 300 400 2524232221 24232221 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility » Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 82Sustainability Statement – Social responsibility
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WORK-LIFE BALANCE METRICS S1-15 Work-life balance metrics During the first reporting year under ESRS, Instalco has applied the phase-in option in ESRS 1 regarding S1-15, and therefore does not report the percent- age of employees entitled to family-related leave. All employees in Instalco’s Nordic operations are covered by national social security systems that provide the right to family-re- lated leave, such as parental leave and childcare leave. These rights are regulated by the legislation of each respective country and are supplemented in most cases by bargaining agreements. Instalco thus ensures that both women and men have equal access to family-related leave. REMUNERATION METRICS S1-16 Remuneration metrics (pay gap and total remuneration) Instalco is working on developing a Group-wide methodology for calculating pay-related indicators. This includes both the analy- sis of pay gaps between women and men and the calculation of the remuneration ratio between the highest-paid individual and the median value for other employees. The work involves harmonising data sources, definitions, and calculation principles across subsidiaries and geographical markets. Once the methodology is fully implemented, Instalco’s ambition is to be able to report comparable and reliable key performance indicators. INCIDENTS, COMPLAINTS AND SEVERE IMPACTS S1-17 Incidents, complaints and severe human rights impacts Instalco monitors work-related incidents and matters via the Group’s whistleblower system, which enables anonymous report- ing. For 2025, no severe human rights-related matters or incidents were reported in the company’s whistleblower system. Nor were there any cases of severe impacts related to human rights reported during 2025. HEALTH AND SAFETY METRICS S1-14 Health and safety metrics During the first reporting year under ESRS, Instalco has applied the phase-in option in ESRS 1 regarding S1-14, which means that the number of cases of work-related ill health and the number of days lost due to work-related accidents are currently not reported. Instalco has a Vision Zero strategy for work-related accidents. During 2025, the number of reported work-related injuries amounted to 127 (222), a sharp decrease. No accidents involving severe personal injury or resulting a in fatality occurred during the year. In the event of a work-related acci- dent, established procedures for actions and follow-up are in place. KPI Absence due to illness OUTCOME 2025 4.4% DESCRIPTION Sickness leave among own staff 0 1 2 3 4 5 6 2524232221 24232221 % LTIFR¹ OUTCOME 2025 10.27 DESCRIPTION LTIFR stands for Lost Time Injury Frequency Rate, and measures absence due to accidents per million hours worked. 1) 2025 is the first year that Instalco measures LTIFR. In previous years, Instalco measured reported workplace accidents that led to sick leave. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility » Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 83Sustainability Statement – Social responsibility
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ESRS S2 – Workers in the value chain MATERIAL IMPACTS, RISKS AND OPPORTUNITIES SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Workers in the value chain include Instalco’s suppliers and subcontractors where the Group has potential impact upstream in the value chain. Downstream, the Group has not identified any material impacts, risks or opportunities and has therefore limited reporting to the upstream stage. Focus is on key suppliers that directly affect cus- tomer projects, as these links have the greatest significance for delivery capacity, quality, and social impact. Instalco has identified four potential negative impacts linked to the value chain. These relate to working conditions at suppliers, equal treatment and non-discrimination in the supply chain, human rights in the value chain, and voluntary work. The Group has not identified any risks or opportunities linked to the value chain. In the table alongside, each IRO is reported along with a brief description. For more information on the process for identify- ing and assessing IROs, see IRO-1 on page 61. Identified IRO Type of IRO Description Working conditions Working conditions at suppliers Good working conditions at suppliers and sub-contractors are crucial for secure supply chains. Instalco works with the Code of Conduct for Suppliers, requirements setting and dialogue to promote secure forms of employment, a good working environment and high safety in projects. At the same time, the risk remains that insufficient follow-up can lead to deficiencies such as precarious employment, unreasonable working hours or inadequate safety routines, which negatively impacts the well-being of workers and the quality of the supply chain. Equal treatment and conditions for all Equal treatment and non-discrimination in the supply chain Instalco works to ensure that suppliers follow principles of equal treatment and non-discrimination according to the Code of Conduct for Suppliers. Despite this, the company has limited opportunity to directly influence the suppliers’ routines, which can lead to unequal treatment or limited opportunities for certain groups in the supply chain. This can affect the working environment, motivation and stability in the supply chain. Other work-related rights Human rights in the value chain Instalco’s supply chain covers several tiers where the company has limited visibility and control. To counteract risks of human rights violations, Instalco has a Code of Conduct for Suppliers based on, among others, the UN Declaration of Human Rights and the ILO’s core conventions. Despite these requirements, non-compliance in the supplier tier can occur, which risks deteriorating the working environment, creating instability in the supply chain and affecting both efficiency and quality in the operations. Work on a voluntary basis In the upstream tiers of Instalco’s supply chain, where visibility is limited, violations of international rules against child labour and forced labour can occur. Instalco counteracts this through a Code of Conduct for Suppliers, requirements for compliance with the UN Convention on the Rights of the Child and ILO conventions, as well as training and moni- toring of suppliers. Despite these measures, the risk remains that children and employees are subject to exploitation or forced labour, which can lead to serious consequences for their safety, health and rights. In accordance with ESRS and Instalco’s double materiality assessment, matters concerning workers in the value chain (ESRS S2) are assessed as material for the Group’s sustainability work. The EU’s relief rules, Quick-fix, which were introduced in July 2025, enable companies to report this information in a more concise manner for the 2025 and 2026 financial years. Instalco therefore provides information on ESRS S2, but focuses on a summary report covering targets, progress, policies, actions taken and relevant metrics, with a particular focus on key suppliers that impact customer delivery. Potential negative impact Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility » Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 84Sustainability Statement – Social responsibility
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POLICIES RELATED TO VALUE CHAIN WORKERS S2-1 Policies related to value chain workers Instalco’s work to ensure responsible working conditions in the value chain is primarily gov- erned by the Group-wide steering documents Sustainability Policy, Code of Conduct for Suppliers, and Purchasing Policy. These docu- ments complement each other and describe the requirements and processes that the Group applies to identify, manage, and follow up on material impacts for workers in the value chain. The Sustainability Policy clarifies the Group’s commitments in the value chain and sets requirements for business partners to respect human rights, good working conditions, and international principles for responsible business conduct. The policy states that Instalco shall implement a due diligence process that includes risk identification, prioritisation, and man- agement of actual and potential work-related hazards in the value chain, such as forced labour, child labour, and human trafficking. If necessary, the process can include dialogue with workers or their representatives. The Sustainability Policy is described further under E1-2, on page 66. The Code of Conduct for Suppliers operation- alises these requirements and applies to all suppliers and relevant subcontractors delivering products or services to Instalco. In this context, subcontractors refers to actors who deliver goods, materials, or services to Instalco’s direct suppliers and who are thus part of the actual supply chain that enables the performance of Instalco’s assignment. The Code of Conduct for Suppliers describes expectations regarding working conditions, human rights, and health and safety. Suppliers shall comply with applicable national and international legislation and follow the Code of Conduct for Suppliers when it sets higher requirements than the law’s minimum standard. For more information on the Code of Conduct for Suppliers, see G1-1 on pages 88-89. To strengthen the management of risks in the supply chain, the Code of Conduct is supple- mented by the Group’s Purchasing Policy, which clarifies how risk awareness is to be translated into practice in supplier agreements and pur- chasing. The policy requires that purchasing deci- sions are based on an assessment of relevant risks and sets requirements for precertification of suppliers, where all contract suppliers shall undergo a supplier assessment before pur- chasing occurs. The Purchasing Policy is further described under E1-2, on page 66. Instalco’s Norwegian subsidiaries are also cov- ered by the Norwegian Transparency Act, which sets requirements for due diligence regarding human rights and decent working conditions in the supply chain. Work under the Transparency Act includes risk assessment, mapping, and reporting of potential negative impacts and is integrated into the Group’s processes for sup- plier assessment and follow-up. PROCESSES AND CHANNELS FOR RAISING CONCERNS S2-2 Processes for engaging with value chain workers about impacts S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns A central part of Instalco’s business conduct framework is the whistleblower function, which ena- bles reporting of suspected irregularities and violations of the Group’s Code of Conduct for Suppli- ers. Read more under G1-1 on pages 88-89. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility » Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 85Sustainability Statement – Social responsibility
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ACTIONS RELATED TO WORKERS IN THE VALUE CHAIN S2-4 Taking actions on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effective - ness of those actions To strengthen the work on social matters in the value chain, Instalco has begun the development of a self-assessment questionnaire for suppliers. The questionnaire will serve as a central tool in the Group’s due diligence process and supports the identification, assessment, and prioritisation of risks linked to human rights, working conditions, health and safety, and business conduct in the supply chain. The results will be used to assess risk levels, plan follow-up activities, and ensure that any deviations are managed in a structured manner. More detailed reporting in this area will be made possible as the work on the self-assessment questionnaire for suppliers is finalised and implemented. TARGETS RELATED TO WORKERS IN THE VALUE CHAIN S2-5 Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities Instalco has not established any time-bound and outcome-oriented targets specifically linked to the material IROs related to workers in the value chain. The Group continuously monitors relevant indicators for workers in the value chain, including compliance with the Code of Conduct for Sup- pliers as well as results from risk assessments and identified deviations. Percentage of purchases covered by the Code of Conduct for Suppliers 100 percent of the central suppliers that affect customer delivery have signed Instalco’s Code of Conduct for Suppliers, which corresponds to approximately 30 percent of the total purchase volume. The focus on this supplier group is motivated by the fact that this is where the greatest impact on project quality, delivery capacity, and operational risks occurs. By applying the KPI to these suppli- ers, this ensures that the indicator reflects the most material risks in the value chain. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility » Social responsibility Business Conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 86Sustainability Statement – Social responsibility
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Business conduct ESRS G1 – Business conduct MATERIAL IMPACTS, RISKS AND OPPORTUNITIES The table below presents Instalco’s material impacts, risks and opportunities linked to business conduct. The identified IROs include compliance, corruption and bribery, supplier relationships and internal control. These are relevant for the entire Group, including subsidiaries and their respective project operations, and affect both employees and other actors in the value chain. Risks linked to corruption and bribery are managed through Instalco’s various policy documents, guidelines from the Swedish Anti-Corrup- tion Institute and the whistleblower function. Risks linked to a lack of compliance and internal control are managed through steering mechanisms, systematic controls and Group-wide routines. Potential negative impacts in the supply chain are minimised through require- ments, the Code of Conduct for Suppliers and a process for risk assessment, follow-up and management of deviations. Within Instalco, the risk of business ethics irregularities varies between different parts of the operations. Functions with extensive external business contacts, such as project sales and purchasing, are assessed to have a higher risk exposure than other functions. This is due, among other things, to contract negotiations, purchasing deci- sions and collaboration with external parties. Instalco’s Group struc- ture, with a large number of independent subsidiaries, also places high demands on good internal control and quality-assured reporting processes. Administrative functions and central support functions are generally assessed to have a lower risk exposure compared with roles close to projects and purchasing, but are nonetheless covered by require- ments for ethical conduct, compliance and financial reliability. These factors form the basis for the Group’s business ethics governance and controls. For more information on the process for identifying and assessing IROs, see IRO-1 on page 61. Identified IRO Type of IRO Description Corporate culture Compliance All employees at Instalco must comply with laws and regulations in the areas of environment, competition, labour law, tax and safety, which are regulated in the Code of Conduct for employees. Breaches of the Code of Conduct can lead to legal consequences, fines and damages, which in the long run can affect the company’s reputation. Management of relationships with suppliers including payment practices Supplier relationships Good relationships with suppliers are central to Instalco to ensure stable and reliable supply chains. This requires continuous development of relationships as well as well-functioning collaboration routines. Lack of governance and follow-up can lead to the company’s Code of Conduct for Suppliers and ethical principles not being com- plied with, which affects efficiency and quality in the supply chain. Corruption and bribery Corruption and bribery Within the industry in which Instalco operates, the risk of corruption and bribery is elevated. Instalco works against this through a Code of Conduct, guidelines from the Swedish Anti-Corruption Institute and an external whistleblower function, but the risk of irregularities remains and constitutes a negative impact. Internal control Instalco consists of over 150 subsidiaries, where each unit is responsible for its own invoicing and financial reporting, which entails requirements for well-functioning inter- nal control. Deficiencies in control mechanisms can lead to errors in accounting, delays or financial mistakes, which can affect the company’s revenue and liquidity and lead to regulatory sanctions. Potential negative impact Risk Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility » Business conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 87Sustainability Statement – Business conduct
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POLICIES RELATED TO RESPONSIBLE BUSINESS CONDUCT G1-1 Business conduct policies and corporate culture Instalco’s corporate culture Instalco’s corporate culture is based on the Group’s vision to be the most competent and efficient partner for its customers and, together with contractors and employees, to contribute to the transition towards a more sustainable world for the next generation. The cul- ture is characterised by entrepreneurship, customer focus, and local responsibility, where the subsidiaries’ proximity to the customer is combined with Group-wide and mature leadership. The Group’s values are summarised in the key words innovation, efficiency, and collaboration, which provide guidance for how Instalco works in its daily operations and in customer relationships. Innova- tion means a focus on holistic solutions, quality, and durability. Effi- ciency is expressed through simple processes, an appropriate organ- isation, and mature leadership. Collaboration characterises both the relationship with customers and the internal cooperation between subsidiaries, with high engagement and knowledge exchange as the foundation. In addition to the values, Instalco’s culture is described through The Instalco Spirit, which is built on courage, entrepreneurship, best prac- tice, and a down-to-earth approach. The Instalco Spirit is character- ised by high engagement, open dialogue, respect, and well-being, as well as a common ambition to develop and succeed together. These values are expressed in the Code of Conduct for employees and per- meate how the Group works in projects, customer relationships, and internal collaborations. The work on culture is promoted through management communi- cation, the subsidiaries’ internal meetings, Group-wide training and exchange of experiences, and through collaboration between compa- nies in connection with acquisitions and integration. Follow-ups take place through employee surveys, dialogues, and recurring internal controls, among other things. Policies The Group has established a framework of policies that regulate responsibilities, expectations and behaviours throughout the Group and ensure a values-driven corporate culture. The work is based on the Group’s Code of Conduct for employees, which sets out basic principles of professionalism, integrity, sound business conduct, dis- qualification, conflicts of interest, information management and pro- tection of the company’s and the customer’s assets. Instalco has no separate policy for corruption and bribery, as this is instead covered in the Code of Conduct for employees. The Code is further described under S1-1 on page 76. As a complement, there is also the Group’s Code of Conduct for Suppliers, which sets out basic requirements for responsible conduct in the supply chain, including relevant sub-suppliers. The Code of Conduct for Suppliers covers requirements for working conditions, human rights, work environment, business conduct and environmen- tal considerations. It is based on the following internationally recog- nised principles for responsible business: • UN Guiding Principles on Business and Human Rights • The Ten Principles of the UN Global Compact • OECD Guidelines for Multinational Enterprises • OECD Due Diligence Guidance for Responsible Business Conduct • ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy. Policy/governance document Code of Conduct for Suppliers Internal Control Policy Purpose Ensures that all suppliers and relevant subcontractors comply with Instalco’s requirements regarding human rights, work environment, business conduct and environmental considera- tions, and that risks in the supply chain are prevented. Ensures effective, transparent and lawful operations through structured governance, risk management and follow-up based on the COSO framework. Scope All suppliers delivering products or services to Instalco, including subcontractors directly rele- vant to the specific assignment or product. Applies to the entire Group and all subsidiaries, including the board, manage- ment and employees with responsibilities in internal control processes. Highest decision- making level Established by the Board of Directors. CEO and executives in the subsidiaries are responsible for local application. Established by the Board of Directors. Monitoring and follow-up are carried out by Group management. Reported to the board and audit committee annually. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility » Business conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 88Sustainability Statement – Business conduct
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Cont. G1-1 Business conduct policies and corporate culture KPI Whistleblowing OUTCOME 2025 0 DESCRIPTION Confirmed breaches of the Code of Conduct reported via the whistle- blower channel YEAR Number 2021 0 2022 0 2023 1 2024 1 2025 0 The Code of Conduct for employees and the Code of Conduct for Suppliers are supplemented by: • Purchasing Policy, which governs the selection and monitoring of suppliers and integrates sustainability requirements in procure- ment. Read more under E1-2, on page 66. • Personnel Policy, which describes guidelines for the working envi- ronment, conduct, and handling of irregularities in daily work. Read more under S1-1, on page 76. • Internal Control Policy, based on the COSO framework, which ensures structured governance, risk management, and follow-up throughout the organisation, as well as compliance with laws, regu- lations, and internal guidelines. The policies are communicated via the intranet and through the sub- sidiaries’ management structure. All Group-wide policies have been reviewed during 2025. Whistleblower function A central mechanism for identifying and managing negative impacts is the Group’s whistleblower function, which enables the reporting of suspected irregularities, human rights violations, or other misconduct that could negatively affect workers. The function is managed by an external, independent party to ensure integrity, anonymity, and secu- rity for the person reporting. All forms of retaliatory measures against whistleblowers are expressly prohibited. The whistleblower function is available to both employees within the Group and to workers in the value chain at suppliers, contractors, and other parties, as well as to the general public. In this way, even individuals who are not employees of Instalco can bring problems to the Group’s attention directly. The channel is described in the Group’s Code of Conduct for Suppliers and Sustainability Policy, which are available via both the intranet and Instalco’s website. Business conduct, anti-corruption, and risk management Business conduct issues and the countering of corruption and bribery are primarily governed by the codes of conduct and supplementary guidelines from the Swedish Anti-Corruption Institute (Mot Mutor). Instalco provides regular training in business conduct, which is pri- marily aimed at leaders, managers, project managers, and employees in business-critical functions, such as procurement and sales. Fre- quency and content vary depending on function and risk exposure. The greatest risks of corruption and bribery arise in functions with extensive external contacts and decision-making authority. This primarily includes roles within project sales, project procurement, material procurement, and tendering – functions that exist in all subsidiaries. The risk is similar and present in all subsidiaries that operate installation and contracting businesses. The work on corruption and bribery is further described under G1-3, and any confirmed instances are reported under G1-4, both presented on page 91. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility » Business conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 89Sustainability Statement – Business conduct
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RELATIONSHIPS WITH SUPPLIERS G1-2 Management of relationships with suppliers The Group’s Purchasing Policy and Code of Conduct for Suppliers constitute central steering documents to ensure responsible and professional supplier relationships and specify how suppliers are selected, monitored, and evaluated. The Group strives for stable and long-term relationships with suppli- ers that deliver high-quality products and services, good security of supply, and compliance with the Group’s sustainability requirements according to the Code of Conduct for Suppliers. Purchasing should primarily be done from centrally procured suppliers with central framework agreements. If these are unavailable, customer-desig- nated suppliers or other reputable actors may also be engaged, provided they meet the requirements in Instalco’s Code of Conduct for Suppliers. Beyond this, Instalco is implementing a selection process for suppli- ers before contracts are signed, where prioritised suppliers are to be audited. The assessment includes, among other things, financial stability, health, safety and environmental work, compliance with laws and regulations, business conduct and corruption prevention routines, as well as social conditions and human rights. The Group provides common templates and documented routines for the assessment to ensure a consistent and traceable way of working. Purchasing decisions are also based on total cost and a life cycle per- spective, involving factors such as installation efficiency, operational reliability, durability, and logistical costs. Purchasing decisions must always be made on business grounds and based on factors such as business conduct, quality, total cost, durabil- ity, security of supply and the history of the relationship. Where com- petitive tendering is relevant, it must be carried out and the decisions documented to ensure traceability and follow-up. This contributes to a transparent and fair treatment of suppliers. In procurement, all sensitive information is treated with confidenti- ality. Pricing information, tenders and technical solutions are never shared between suppliers, which ensures fair competition and complies with the Group’s requirements for integrity and business conduct. In the selection of suppliers, Instalco takes into account both social and environmental aspects. Suppliers must follow the Group’s Code of Conduct for Suppliers, which sets requirements for respect for human rights, working conditions, business conduct, environmental protection and the working environment. Particular emphasis is placed on preventing risks linked to forced labour, human trafficking and child labour, which is reflected in the company’s due diligence processes and follow-up. The Code of Conduct for Suppliers in some cases goes further than national legislation and serves as a minimum requirement for all central suppliers. The Code is integrated into the procurement processes, which means that sustainability require- ments are taken into account at an early stage of the supplier selec- tion and as conditions in contracts. As part of this, Instalco has also begun the development of a self-as- sessment form for suppliers, which is described in more detail under S2-4 on page 86. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility » Business conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 90Sustainability Statement – Business conduct
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PAYMENT PRACTICES G1-6 Payment practices Instalco applies payment terms that in most cases are based on agreements between the respective subsidiary and the suppliers. This means that the payment period may vary between different suppliers and supplier categories depend- ing on agreed terms, project conditions and industry practice. The Group therefore does not use a uniform standard term for all suppliers; instead, payment is made in accordance with the specific agreements established. Information on payment periods may be reported in the future to the extent that it is available and deemed relevant for reporting. INCIDENTS OF CORRUPTION AND BRIBERY G1-4 Incidents of corruption and bribery In 2025, no incidents of corruption and bribery were identified in Instalco’s value chain and therefore no fines were issued. POLITICAL INFLUENCE AND LOBBYING ACTIVITIES G1-5 Political influence and lobbying activities Instalco does not conduct any form of its own lobbying activ- ity and does not provide any political contributions, whether direct or indirect, monetary or in kind. The Group’s potential political influence occurs, for example, through membership in the employer organisation Installatörsföretagen. CORRUPTION AND BRIBERY G1-3 Prevention and detection of corruption and bribery Instalco has a Group-wide system for the prevention and detection of corruption and bribery, and for managing such risks. The work is primarily regulated through the Group’s Code of Conduct for employees, Code of Conduct for Suppli- ers and Sustainability Policy, which are described under G1-1 on pages 88-89. The central mechanism for the detection and reporting of suspected irregularities is the Group’s whistleblower function. The Board of Directors, the audit committee and the Group management receive regular updates on received reports and any incidents, which ensures that the Group’s governing bod- ies have full visibility into risks and events linked to business conduct. Any confirmed breaches result in corrective and preventive actions. Instalco does not have any stand-alone mandatory training in corruption and bribery; instead, these issues are managed as an integrated part of the Group’s work on business con- duct and in relevant policies. The Group CEO and executives in each subsidiary are responsible for implementing and ensuring compliance with relevant policies, with operational responsibility for ensuring that employees are aware of and comply with applicable regulations. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility » Business conduct Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 91Sustainability Statement – Business conduct
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Appendix ESRS Sustainability Index IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement Disclosure requirements Page GENERAL DISCLOSURES ESRS 2 General disclosures 54 BP-1 General basis for preparation of the sustainability statement 54 BP-2 Disclosures in relation to specific circumstances 54 GOV-1 Role of the administrative, management and supervisory bodies 55 GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies 56 GOV-3 Integration of sustainability-related performance in incentive schemes 56 GOV-4 Statement on due diligence 56 GOV-5 Risk management and internal control over sustainability reporting 57 SBM-1 Strategy, business model and value chain 57-59 SBM-2 Interests and views of stakeholders 60 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 62-63 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 61 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement 92 ENVIRONMENTAL RESPONSIBILITY E1 Climate change 64 GOV-3 Integration of sustainability-related performance in incentive schemes 56 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 64-65 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 61 E1-1 Transition plan for climate change mitigation 65 E1-2 Policies related to climate change mitigation and adaptation 66 E1-3 Actions and resources in relation to climate change policies 67 E1-4 Targets related to climate change mitigation and adaptation 68 E1-5 Energy consumption and mix 69 E1-6 Gross Scope 1, 2, 3 and Total GHG emissions 70-71 E1-7 GHG removals and GHG mitigation projects financed through carbon credits 71 E1-8 Internal carbon pricing 71 E1-9 Anticipated financial effects Phase-in Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility Business Conduct » Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 92Sustainability Statement – Appendix
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Disclosure requirements Page SOCIAL RESPONSIBILITY S1 Own workforce 74 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 74-75 S1-1 Policies related to own workforce 76 S1-2 Processes for engaging with own workforce 77 S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns 78 S1-4 Taking action on material impacts on own workforce 79 S1-5 Targets related to own workforce 80 S1-6 Characteristics of the undertaking’s employees 80 S1-7 Characteristics of non-employees Phase-in S1-8 Collective bargaining coverage and social dialogue Phase-in S1-9 Diversity metrics 81 S1-10 Adequate wages 81 S1-11 Social protection 81 S1-12 Persons with disabilities Phase-in S1-13 Training and skills development metrics 82 S1-14 Health and safety metrics 83 S1-15 Work-life balance metrics 83 S1-16 Remuneration metrics (pay gap and total remuneration) 83 S1-17 Incidents, complaints and severe human rights impacts 83 S2 Workers in the value chain 84 S2-1 Policies related to value chain workers 85 S2-2 Processes for engaging with value chain workers about impacts 85 S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns 85 S2-4 Taking action on material impacts on value chain workers 86 S2-5 Targets related to value chain workers 86 GOVERNANCE RESPONSIBILITY G1 Business conduct 87 G1-1 Business conduct policies and corporate culture 88-89 G1-2 Management of relationships with suppliers 90 G1-3 Prevention and detection of corruption and bribery 91 G1-4 Incidents of corruption and bribery 91 G1-5 Political influence and lobbying activities 91 G1-6 Payment practices 91 Cont. ESRS Sustainability index Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility Business Conduct » Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 93Sustainability Statement – Appendix
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Datapoints derived from other EU legislation Disclosure requirement and related datapoint Reference in the Disclosure Regulation Reference in the third pillar Reference in the Benchmark Regulation Reference in the EU Climate Law Page ESRS 2 GOV-1 Board gender diversity paragraph 21 (d) Indicator no. 13 table 1 in Annex I Commission Dele- gated Regulation (EU) 2020/1816, Annex II 55 ESRS 2 GOV-1 Percentage of independent board members paragraph 21 (e) Annex II to Delegated Reg- ulation (EU) 2020/1816 55 ESRS 2 GOV-4 Statement on due diligence paragraph 30 Indicator no. 10 table 3 in Annex I 56 ESRS 2 SBM-1 Involvement in activities related to fossil fuels para- graph 40 (d) (i) Indicator no. 4 table 1 in Annex I Article 449a of Regulation (EU) No 575/2013 Commission Implementing Regulation (EU) 2022/2453, table 1: Qualitative information on environmental risks and table 2: Qualitative information on social risks Annex II to Delegated Reg- ulation (EU) 2020/1816 N/A ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) (ii) Indicator no. 9 table 2 in Annex I Annex II to Delegated Reg- ulation (EU) 2020/1816 N/A ESRS 2 SBM-1 Involvement in activities related to controversial weap- ons paragraph 40 (d) (iii) Indicator no. 14 table 1 in Annex I Article 12.1 of Dele- gated Regulation (EU) 2020/1818, Annex II to Delegated Regulation (EU) 2020/1816 N/A ESRS 2 SBM-1 Involvement in activities related to cultivation and pro- duction of tobacco paragraph 40 (d) (iv) Article 12.1 of Dele- gated Regulation (EU) 2020/1818, Annex II to Delegated Regulation (EU) 2020/1816 N/A ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 Regulation (EU) 2021/1119, Article 2.1. 65 ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) Article 449a Regulation (EU) No 575/2013, Commission Implementing Regulation (EU) 2022/2453, Template 1: Banking book-level – Climate change transition risk: Credit quality of exposures by sector, emissions and resid- ual maturity Delegated Regulation (EU) 2020/1818, Articles 12.1 d-g and Article 12.2 65 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility Business Conduct » Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 94Sustainability Statement – Appendix
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Disclosure requirement and related datapoint Reference in the Disclosure Regulation Reference in the third pillar Reference in the Benchmark Regulation Reference in the EU Climate Law Page ESRS E1-4 GHG emission reduction targets paragraph 34 Indicator no. 4 Table 2 of Annex I Article 449a Regulation (EU) No 575/2013, Commission Implementing Regulation (EU) 2022/2453, Template 3: Banking book-level – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 6 68 ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 Indicator no. 5 Table 1 and indicator no. 5 Table 2 of Annex I 69 ESRS E1-5 Energy consumption and mix paragraph 37 Indicator no. 5 Table 1 of Annex I 69 ESRS E1-5 Energy intensity associated with activities in high climate sectors paragraph 40 to 43 Indicator no. 6 Table 1 of Annex I 69 ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 Indicator no. 1 and Indicator no. 2 Table 1 of Annex I Article 449a, Regulation (EU) No 575/2013, Commission Implementing Regulation (EU) 2022/2453, Template 1: Banking book – Cli- mate change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Articles 5.1, 6 and 8.1 70 ESRS E1-6 Gross GHG emissions inten- sity paragraph 53 to 55 Indicator no. 3 Table 1 of Annex I Article 449a of Regulation (EU) No 575/2013 Commission Implementing Regulation (EU) 2022/2453, Template 3: Banking book – Climate change transition risk: Alignment metrics Delegated Regulation (EU) 2020/1818, Article 8.1 70 ESRS E1-7 GHG removals and carbon credits paragraph 56 Regulation (EU) 2021/1119, Article 2.1. 71 ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 Annex II to Delegated Reg- ulation (EU) 2020/1818, Annex II to Delegated Reg- ulation (EU) 2020/1816 Phase-in Cont. Datapoints derived from other EU legislation Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility Business Conduct » Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 95Sustainability Statement – Appendix
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Disclosure requirement and related datapoint Reference in the Disclosure Regulation Reference in the third pillar Reference in the Benchmark Regulation Reference in the EU Climate Law Page ESRS E1-9 Disaggregation of mon- etary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk para- graph 66 (c) Article 449a of Regulation (EU) No 575/2013 Commission Implementing Regulation (EU) 2022/2453, paragraphs 46 and 47: Template 5: Banking book – Climate change physical risk: Exposures subject to physical risk Phase-in ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c) Article 449a of Regulation (EU) No 575/2013, Commission Implementing Regulation (EU) 2022/2453, paragraph 34, Template 2 – Cli- mate change transition risk for banking book: Loans collateralised by immovable property – Energy efficiency of the collateral Phase-in ESRS E1-9 Degree of exposure of the portfolio to climate-related opportunities paragraph 69 Annex II to Delegated Regulation (EU) 2020/1818 Phase-in ESRS E2-4 Amount of each pollutant listed in Annex II of the EPRTR (European Pollutant Release and Transfer Regis- ter) emitted to air, water and soil, paragraph 28 Indicator no. 8 Table 1 of Annex 1 Indicator no. 2 Table 2 of Annex 1 Indicator no. 1 Table 2 of Annex 1 Indicator no. 3 Table 2 of Annex 1 Not material ESRS E3-1 Water and marine resources paragraph 9 Indicator no. 7 Table 2 of Annex I Not material ESRS E3-1 Dedicated policy paragraph 13 Indicator no. 8 Table 2 of Annex I Not material ESRS E3-1 Sustainable oceans and seas paragraph 14 Indicator no. 12 Table 2 of Annex I Not material ESRS E3-4 Total water recycled and reused paragraph 28 (c) Indicator no. 6.2 Table 2 of Annex I Not material ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29 Indicator no. 6.1, Table 2 of Annex I Not material ESRS 2 – IRO 1 – E4 paragraph 16 (a) (i) Indicator no. 7, Table 1 of Annex I Not material Cont. Datapoints derived from other EU legislation Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility Business Conduct » Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 96Sustainability Statement – Appendix
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Disclosure requirement and related datapoint Reference in the Disclosure Regulation Reference in the third pillar Reference in the Benchmark Regulation Reference in the EU Climate Law Page ESRS 2 – IRO 1 – E4 paragraph 16 (b) Indicator no. 10, Table 2 of Annex I Not material ESRS 2 – IRO 1 – E4 paragraph 16 (c) Indicator no. 14, Table 2 of Annex I Not material ESRS E4-2 Sustainable land / agriculture practices or policies para- graph 24 (b) Indicator no. 11, Table 2 of Annex I Not material ESRS E4-2 Sustainable oceans / seas practices or policies para- graph 24 (c) Indicator no. 12, Table 2 of Annex I Not material ESRS E4-2 Policies to address deforesta- tion paragraph 24 (d) Indicator no. 15, Table 2 of Annex I Not material ESRS E5-5 Non-recycled waste para- graph 37 (d) Indicator no. 13, Table 2 of Annex I Not material ESRS E5-5 Hazardous waste and radio- active waste paragraph 39 Indicator no. 9, Table 1 of Annex I Not material ESRS 2 – SBM3 – S1 Risk of incidents of forced labour paragraph 14 (f) Indicator no. 13, Table 3 of Annex I 75 ESRS 2 – SBM3 – S1 Risk of incidents of child labour paragraph 14 (g) Indicator no. 12, Table 3 of Annex I 75 ESRS S1-1 Human rights policy commit- ments paragraph 20 Indicator no. 9, Table 3 and Indicator no. 11, Table 1 of Annex I 76 ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labour Organisation Conven- tions 1 to 8, paragraph 21 Annex II to Delegated Regulation (EU) 2020/1816 76 ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22 Indicator no. 11, Table 3 of Annex I 76 ESRS S1-1 Workplace accident preven- tion policy or management system paragraph 23 Indicator no. 1 table 3 in Annex I 76 Cont. Datapoints derived from other EU legislation Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility Business Conduct » Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 97Sustainability Statement – Appendix
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Disclosure requirement and related datapoint Reference in the Disclosure Regulation Reference in the third pillar Reference in the Benchmark Regulation Reference in the EU Climate Law Page ESRS S1-3 Grievance/complaints han- dling mechanisms paragraph 32 (c) Indicator no. 5 table 3 in Annex I 78 ESRS S1-14 Number of fatalities and rate of work-related accidents paragraph 88 (b) and (c) Indicator no. 2 table 3 in Annex I Annex II to Delegated Regulation (EU) 2020/1816 83 ESRS S1-14 Number of days lost to inju- ries, accidents, fatalities or illness paragraph 88 (e) Indicator no. 3 table 3 in Annex I Phase-in ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) Indicator no. 12 table 1 in Annex I Annex II to Delegated Regulation (EU) 2020/1816 83 ESRS S1-16 Excessive CEO pay ratio para- graph 97 (b) Indicator no. 8 table 3 in Annex I Phase-in ESRS S1-17 Incidents of discrimination paragraph 103 (a) Indicator no. 7 table 3 in Annex I 83 ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD Guidelines para- graph 104 (a) Indicator no. 10 table 1 and indicator no. 14 table 3 in Annex I Annex II to Delegated Regulation (EU) 2020/1816, Article 12.1 in Delegated Regulation (EU) 2020/1818 83 ESRS 2 – SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) Indicator no. 12 and indicator no. 13 table 3 in Annex I 84 ESRS S2-1 Human rights policy commit- ments paragraph 17 Indicator no. 9 table 3 and indicator no. 11 table 1 in Annex I 85 ESRS S2-1 Policies related to value chain workers paragraph 18 Indicator no. 11 and indicator no. 4 table 3 in Annex I 85 ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guide- lines paragraph 19 Indicator no. 10 table 1 in Annex I Annex II to Delegated Regulation (EU) 2020/1816, Article 12.1 in Delegated Regulation (EU) 2020/1818 85 ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labour Organisation Conven- tions 1 to 8, paragraph 19 Annex II to Delegated Regulation (EU) 2020/1816 85 Cont. Datapoints derived from other EU legislation Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility Business Conduct » Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 98Sustainability Statement – Appendix
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Disclosure requirement and related datapoint Reference in the Disclosure Regulation Reference in the third pillar Reference in the Benchmark Regulation Reference in the EU Climate Law Page ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 Indicator no. 14 table 3 in Annex I 86 ESRS S3-1 Human rights policy commit- ments paragraph 16 Indicator no. 9 table 3 in Annex I and indicator no. 11 table 1 in Annex I Not material ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guide- lines paragraph 17 Indicator no. 10 table 1 in Annex I Annex II to Delegated Regulation (EU) 2020/1816, Article 12.1 in Delegated Regulation (EU) 2020/1818 Not material ESRS S3-4 Human rights issues and incidents paragraph 36 Indicator no. 14 table 3 in Annex I Not material ESRS S4-1 Policies related to consumers and end-users paragraph 16 Indicator no. 9 table 3 and indicator no. 11 table 1 in Annex I Not material ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines para- graph 17 Indicator no. 10 table 1 in Annex I Annex II to Delegated Regulation (EU) 2020/1816, Article 12.1 in Delegated Regulation (EU) 2020/1818 Not material ESRS S4-4 Human rights issues and incidents paragraph 35 Indicator no. 14 table 3 in Annex I Not material ESRS G1-1 United Nations Convention against Corruption para- graph 10 (b) Indicator no. 15 table 3 in Annex I 88-89 ESRS G1-1 Protection of whistleblowers paragraph 10 (d) Indicator no. 6 table 3 in Annex I 89 ESRS G1-4 Fines for violation of anti-cor- ruption and anti-bribery laws paragraph 24 (a) Indicator no. 17 table 3 in Annex I Delegated Regulation (EU) 2020/1816, Annex II 91 ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b) Indicator no. 16 table 3 in Annex I 91 Cont. Datapoints derived from other EU legislation Contents Introduction Strategy Operations Corporate Governance Sustainability Statement General disclosures Environmental responsibility Social responsibility Business Conduct » Appendix Financial information Other information Instalco Annual and Sustainability Report 2025 99Sustainability Statement – Appendix
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Financial information Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company Notes Board signatures Auditor’s report Other information
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Consolidated income statement AMOUNTS IN SEK M Note 2025 2024 Operating income Net sales 2, 3 13,598 13,690 Other operating income 132 132 Total operating income 13,730 13,822 Operating expenses Materials and purchased services −6,379 −6,456 Other external costs 4 −1,123 −1,161 Employee benefit costs 5 −5,004 −4,916 Depreciation/amortisation and impairment of property, plant and equipment and intangible assets −541 −589 Other operating expenses −15 −11 Total operating expenses −13,062 −13,133 Operating profit (loss) (EBIT) 668 690 Profit (loss) from financial items Financial income 48 51 Financial expenses 7 −192 −255 Earnings before taxes 523 486 Income tax 8 −147 −122 Profit (loss) for the year 376 364 Profit (loss) attributable to: Parent Company’s shareholders 344 345 Non-controlling interests 33 19 Earnings per share 9 Basic earnings per share, SEK 1.28 1.31 Diluted earnings per share, SEK 1.28 1.31 Consolidated statement of comprehensive income AMOUNTS IN SEK M Note 2025 2024 Profit (loss) for the year 376 364 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations –158 11 Other comprehensive income after tax –158 11 Total comprehensive income for the year 218 375 Total comprehensive income attributable to: Non-controlling interests 33 19 Parent Company’s shareholders 186 356 Comments on the consolidated income statement Net sales Net sales for the year amounted to SEK 13,598 (13,690) million, a decrease of 0.7 percent. Adjusted for currency effects, organic change amounted to –0.3 percent and acquired growth amounted to 0.7 percent. Currency fluctuations had an impact of –1.1 percent. Earnings Operating profit before amortisation of acquired intangible assets (EBITA) amounted to SEK 800 (879) million, which corresponds to an EBITA margin of 5.9 (6.4) percent. EBITA adjusted for items affecting comparability amounted to 875 (944) million, with a corresponding EBITA margin of 6.4 (6.9) percent. Items affecting comparability dur- ing the year amounted to –75 (–65) million and related to the impair- ment of trade receivables as well as compensation to the departing CEO and Group CEO. Operating profit (EBIT) for the year amounted to 668 (690) million. Amortisation and impairment of acquired intangible assets decreased by SEK 57 million and amounted to 132 (189) million. The net change includes lower planned depreciation of SEK 36 million as a result of a lower share of identified depreciable assets and a non-recur- ring effect of SEK 7 million related to impairment of goodwill and other related intangible assets as a result of closure of subsidiaries. Adjusting for non-recurring costs totalling SEK 75 (94) million, EBIT amounted to 743 (784) million. Net financial items for the year amounted to –145 (–204) million, of which unrealised value changes amounted to 33 (–3) million and interest expenses on external loans amounted to –126 (–162) million. Income tax amounted to –147 (–122) million and the effective tax rate was 28 (25) percent. The size of the tax expense in relation to earnings is primarily explained by tax adjustments. Earnings for the year amounted to 376 (364) million, which corre- sponds to earnings per share before dilution of 1.28 (1.31) SEK. Cost structure Employees 40% Materials 35% Subcontractors 16% Transport equipment 2% Other 7% Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information » Group Parent Company Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 101Consolidated income statement
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Consolidated balance sheet AMOUNTS IN SEK M Note 31/12/2025 31/12/2024 ASSETS Non-current assets Intangible assets 10 Goodwill 5,210 5,301 Other intangible assets 328 451 Total intangible assets 5,538 5,752 Property, plant and equipment 11 Other non-current assets 375 392 Right-of-use assets 677 697 Total property, plant and equipment 1,051 1,089 Financial assets 12 Shares in associated companies and jointly controlled entities 14 248 6 Receivables from associated companies and jointly run companies 1 1 Non-current security holdings 35 33 Non-current receivables 6 7 Total financial assets 290 47 Deferred tax asset 8 57 53 Total non-current assets 6,936 6,941 Current assets Finished goods and goods for resale 188 209 Total inventories 188 209 Current receivables 12 Accounts receivable 15 1,839 1,943 Current tax asset 103 90 Other receivables 61 68 Contract assets 16 551 648 Prepaid expenses and accrued income 241 204 Cash and cash equivalents 17 348 208 Total current receivables 3,143 3,159 Total current assets 3,331 3,368 TOTAL ASSETS 10,267 10,310 AMOUNTS IN SEK M Note 31/12/2025 31/12/2024 EQUITY AND LIABILITIES Equity 18 Share capital 1 1 Other paid-in capital 1,264 1,126 Reserve –148 10 Retained earnings incl. profit (loss) for the year 2,110 2,072 Equity attributable to the Parent Company’s shareholders 3,228 3,209 Non-controlling interests 170 173 Total equity 3,397 3,382 Non-current liabilities 12 Liabilities to credit institutions 20 3,122 2,977 Lease liabilities 20 382 411 Deferred tax liabilities 8 285 358 Other liabilities 27 15 41 Total non-current liabilities 3,803 3,786 Current liabilities 12 Provisions 18 33 28 Liabilities to credit institutions 19 5 6 Lease liabilities 19 276 263 Accounts payable 21 989 905 Current tax liabilities 0 82 Other liabilities 376 522 Contract liabilities 16 521 528 Accrued expenses and deferred income 22 867 808 Total current liabilities 3,066 3,142 Total liabilities 6,870 6,928 TOTAL EQUITY AND LIABILITIES 10,267 10,310 Comments on the consolidated balance sheet Financial position Equity at the end of the year amounted to 3,397 (3,382) million kronor and the equity ratio to 33.1 (32.8) percent. Cash and cash equivalents at the end of the year amounted to 348 (208) million kronor. Interest-bearing liabilities including leasing amounted at the end of the year to 3,791 (3,665) million kronor, of which leasing accounts for 658 (674) million kronor. Instalco’s total credit facility, together with unused credits, amounted to a total of 3,850 (3,850) million kronor at the end of the year, of which 3,100 (2,950) million kronor was utilised. At the end of the financial year, the Group has a good margin to the loan conditions, so-called covenants, which are the ratio of net debt/EBITDA and interest coverage. Interest-bearing net debt amounted at the end of the year to 3,444 (3,458) million kronor and the gearing ratio to 106.7 (107.8) percent. Net debt in relation to EBITDA was 2.8 (2.7), which is slightly higher than the target of 2.5. Currency fluctuations affected interest-bear- ing net debt by 26 (2) million kronor. Investments and depreciation Investments in business acquisitions during the year amounted to SEK 155 (197) million. The amount includes settled contingent considerations attributable to acquisitions in the current and previous years of SEK 132 (151) million. Acquisitions of shares in the associated company Fabri AG amounted to SEK 243 (0) million. Net investments in fixed assets amounted to SEK 94 (100) million during the year. Depreciation, amortisation and impairment of tangible and intangible fixed assets amounted to SEK 541 (589) million, of which depreciation of tangible fixed assets amounted to SEK 409 (400) million and amortisation and impairment of acquired intangible fixed assets amounted to SEK 132 (189) million. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information » Group Parent Company Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 102Consolidated balance sheet
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Consolidated statement of changes in equity AMOUNTS IN SEK M Note Share capital Other paid-in capital Reserve Retained earnings incl. profit (loss) for the year Total Non-con- trolling interests Total equity Opening balance 01/01/2025 1 1,126 10 2,072 3,209 173 3,382 Profit (loss) for the year – – – 344 344 33 376 Exchange differences on translation of foreign operations – – –158 – –158 –1 –158 Total comprehensive income for the year – – –158 344 186 32 218 Transactions with owners Dividends – – – –183 –183 – –183 New share issues 14 0 138 – – 138 – 138 Change in non-controlling interests 0 – – –124 –124 –35 –159 Issue of warrants – – – 3 3 – 3 Buyback of warrants – – – –1 –1 – –1 Total transactions with owners 0 138 – –305 –167 –35 –203 Closing balance 31/12/2025 18 1 1,264 –148 2,110 3,228 170 3,397 Opening balance 01/01/2024 1 1,126 –1 2,080 3,207 183 3,390 Profit (loss) for the year – – – 345 345 19 364 Exchange differences on translation of foreign oper- ations – – 11 – 11 –1 11 Total comprehensive income for the year – – 11 345 356 18 375 Transactions with owners Dividends – – – –179 –179 – –179 New share issues – – – – – – – Change in non-controlling interests – – – –184 –184 –27 –211 Issue of warrants – – – 9 9 – 9 Total transactions with owners – – – –354 –354 –27 –382 Closing balance 31/12/2024 18 1 1,126 10 2,072 3,209 173 3,382 Comments on the consolidated statement of changes in equity Equity The share capital amounts to 806 (792) TSEK and consists of 268,754,752 outstanding shares. All shares have a quota value of SEK 0.003 (0.003) and carry equal rights to a share in the company's assets and earnings as well as equal voting rights. In connection with the acquisition of the associ- ated company Fabri AG, a directed new share issue of SEK 138 million was carried out (SEK 29.70 per share). The new share issue resulted in an increase of 4,647,727 ordinary shares. The translation reserve relates to exchange rate differences arising from the translation of foreign operations in accordance with IAS 21. Changes in the translation reserve are recognised in other comprehensive income. Material transactions with non-controlling inter- ests have been carried out at carrying amount. A dividend of SEK 183 million (SEK 179 million) was paid in accordance with the resolution at the Annual General Meeting. The dividend was recog- nised as a reduction of retained earnings when it was approved. During the financial year, the Group has changed its ownership interest in subsidiaries without losing controlling influence. The transactions have been recognised as equity transactions in accordance with IFRS 10, meaning that no gain or loss has been recognised in the income statement. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information » Group Parent Company Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 103Consolidated statement of changes in equity
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Consolidated cash flow statement AMOUNTS IN SEK M Note 2025 2024 Operating activities Earnings before taxes 523 486 Adjustment for items not included in cash flow etc. 25 605 654 Income tax paid –310 –157 Cash flow from operating activities before changes in working capital 818 983 Changes in working capital: Change in inventories 15 –4 Change in accounts receivable and other receivables 39 150 Change in accounts payable and other liabilities 138 –182 Cash flow from operating activities 1,010 946 Investing activities Acquisition of shares in subsidiaries, after deducting cash and cash equivalents 26 –155 –197 Acquisition of associated companies 14 –99 0 Acquisition of intangible assets 10 –14 –4 Acquisition of property, plant and equipment 11 –83 –121 Disposal of property, plant and equipment 11 24 21 Decrease/increase in financial assets –20 4 Cash flow from investing activities –348 –297 Financing activities Issue of warrants 3 9 Buyback of warrants –1 – Acquisition of non-controlling interests –160 –200 Dividends –183 –179 Borrowings 12 4,150 600 Repayment of loans 12 –3,969 –618 Repayment of lease liabilities –327 –318 Cash flow from financing activities –487 –706 CASH FLOW FOR THE YEAR 176 –57 AMOUNTS IN SEK M Note 2025 2024 Cash and cash equivalents at beginning of year 208 267 Exchange difference in cash and cash equivalents –35 –3 Cash and cash equivalents at end of year 348 208 Cash and cash equivalents from continuing operations 348 208 Cash flow for the year from interest: Interest paid –137 –191 Interest received 4 12 Interest paid is attributable to financing activities and accounted for within operating activities. Interest received is attributa- ble to operating activities. Comments on the consolidated cash flow statement Cash flow Cash flow from operating activities amounted to SEK 1,010 (946) million, of which changes in working capi- tal were SEK 192 (–37) million. The Group’s working capital fluctuates during the year, primarily because of fluctuations in these line items: work in progress, accounts receivable, and accounts payable. Cash flow from investing activities amounted to SEK –348 (–297) million, of which acquisitions of subsid- iaries and businesses amounted to SEK –155 (–197) million and the acquisition of shares in the associated company Fabri AG amounted to SEK –99 (0) million. Cash flow from financing activities amounted to SEK –487 (–706) million, of which the net change in loans amounted to SEK 181 (–18) million, while acquisitions of non-controlling interests amounted to SEK –160 (–200). The change regarding loans raised and repaid is primarily due to the Group signing a new credit agreement during the second quarter. Amortisation of lease liabilities amounted to SEK –327 (–318) million. Acquisitions of non-controlling interests refer to the purchase of shares in existing subsidiaries where minority interests exist. A dividend of SEK 0.68 (0.68) per share was paid during the period, corresponding to SEK 183 (179) million. Furthermore, the change in warrants amounted to SEK 2 (9) million. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information » Group Parent Company Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 104Consolidated cash flow statement
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Parent Company income statement AMOUNTS IN SEK M Note 2025 2024 Operating income Net sales 14 21 Total operating income 14 21 Operating expenses Other external costs 4 –10 –8 Personnel costs 5 –19 –13 Total operating expenses –29 –21 Operating profit (loss) –14 0 Profit (loss) from financial items Income from shares in Group companies 6 180 55 Interest income and similar profit or loss items 0 1 Interest expense and similar profit or loss items 7 –13 –10 Profit (loss) after financial items 153 46 Appropriations Group contributions received 24 9 Earnings before taxes 177 54 Tax on profit (loss) for the year 8 –1 0 Profit (loss) for the year 175 54 Earnings for the year are consistent with comprehensive income for the year. Comments on the Parent Company Instalco AB’s principal operations are head office functions such as Group-wide management, administra- tion and financial functions. Net sales amounted to SEK 14 (21) million. The operating result amounted to SEK -14 (0) million. Earn- ings after financial items amounted to SEK 153 (46) million, mainly attributable to income from shares in Group companies. Earnings before tax amounted to SEK 177 (54) million, and net earnings for the period amounted to SEK 175 (54) million. Cash and cash equivalents at the end of the period amounted to SEK 5 (13) million. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group » Parent Company Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 105Parent Company income statement
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Parent Company balance sheet AMOUNTS IN SEK M Note 2025-12-31 2024-12-31 ASSETS Non-current assets Financial assets Shares in Group companies 13 1,514 1,375 Deferred tax asset 3 3 Total financial assets 1,517 1,378 Total non-current assets 1,517 1,378 Current assets Current receivables Other receivables 24 9 Total current receivables 24 9 Cash and bank balances 5 13 Total current assets 29 22 TOTAL ASSETS 1,546 1,400 AMOUNTS IN SEK M Note 2025-12-31 2024-12-31 EQUITY AND LIABILITIES Equity 18 Restricted equity Share capital 1 1 1 1 Non-restricted equity 28 Share premium reserve 1,390 1,249 Retained earnings –187 –59 Profit (loss) for the year 175 54 1,377 1,244 Total equity 1,378 1,245 Non-current liabilities Liabilities to credit institutions 20 144 145 Total non-current liabilities 144 145 Current liabilities Accounts payable 21 2 0 Other liabilities 11 4 Accrued expenses and deferred income 22 12 7 Total current liabilities 25 11 Total liabilities 168 155 TOTAL EQUITY AND LIABILITIES 1,546 1,400 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group » Parent Company Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 106Parent Company balance sheet
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Parent Company statement of changes in equity AMOUNTS IN SEK M Note Share capital Share premium reserve Retained earnings Profit (loss) for the year Total equity Opening balance 01/01/2025 1 1,249 –59 54 1,245 Dividends – – –183 – –183 Transfer of previous year’s earnings – – 54 –54 0 Issue of warrants – 2 – – 2 New share issue – 138 – – 138 Profit (loss) for the year – – – 175 175 Closing balance 31/12/2025 18 1 1,389 –188 175 1,378 Opening balance 01/01/2024 1 1,240 –54 174 1,361 Dividends – – –179 – –179 Transfer of previous year’s earnings – – 174 –174 0 Issue of warrants – 9 – – 9 Profit (loss) for the year – – – 54 54 Closing balance 31/12/2024 18 1 1,249 –59 54 1,245 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group » Parent Company Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 107Parent Company statement of changes in equity
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Parent Company cash flow statement AMOUNTS IN SEK M Note 2025 2024 OPERATING ACTIVITIES Profit (loss) after financial items 153 46 Adjustment for items not included in cash flow 25 0 0 Income tax paid –1 –1 Cash flow from operating activities before changes in working capital 152 46 Changes in working capital: Change in accounts receivable and other receivables 8 109 Change in accounts payable and other liabilities 13 –6 Cash flow from continuing operations 173 148 Investing activities Shareholder contributions made/repaid 13 0 0 Cash flow from investing activities 0 0 Financing activities Dividends –183 –179 Borrowings 150 – Repayment of loans –151 –2 Premium for warrants 2 9 Cash flow from financing activities –181 –172 CASH FLOW FOR THE YEAR –8 –24 Cash and cash equivalents at beginning of year 13 37 Cash and cash equivalents at end of year 5 13 Cash flow for the year from interest Interest paid –5 –8 Interest received 0 1 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group » Parent Company Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 108Parent Company cash flow statement
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Notes Note 1. Recognition and measurement principles General information The consolidated financial statements have been prepared in accordance with EU-approved IFRS (International Financial Reporting Standards) issued by the IASB (International Accounting Standards Board) and interpretations issued by the IFRS Interpretations Committee. The recommendations by the Swedish Financial Reporting Board in RFR 1 Supplementary Accounting Rules for Groups have also been applied. The annual accounts for the Parent Company have been prepared in accord- ance with the Swedish Annual Accounts Act (1995:1554) and recommendation RFR 2 Accounting for Legal Entities issued by the Swedish Financial Reporting Board. Where the Parent Company applies different principles to the Group this is stated under the heading Parent Company below. The consolidated financial statements are presented in SEK, which is the Parent Company’s reporting currency. The Parent Company’s annual accounts and the consolidated financial statements were approved for issuance by the Board on 13 March 2026. The Parent Company’s and the Group’s income statements and balance sheets will be presented for adoption by the AGM on 5 May 2026. New and updated standards entering into force for financial years starting on or after 1 January 2025 The amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates, regarding the lack of exchangeability, had no material impact on the amounts recognised during the current period or the comparative period. Standards, amendments and interpretations of existing standards that have not yet entered into force and are not being early adopted by the Group Amendments have been made to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures regarding classification and measurement of financial instruments. The amendments clarify, among other things, the timing of derecognition of financial liabilities and provide additional guidance on elec- tronic payments. The amendments also clarify the assessment of the nature of contractual cash flows for financial assets with specific terms, including those linked to sustainability-linked agreements. In addition, the amendments entail additional disclosure requirements for financial instruments with specific terms and equity instruments classified at fair value through other comprehensive income. The amendments are to be applied for periods beginning on 1 Janu- ary 2026 and have been endorsed by the EU. Instalco does not expect these amendments to have any material effect on operations or financial reports. IFRS 18 Presentation and Disclosures in Financial Statements and related amendments to IAS 7, IAS 8 and IAS 34 replace IAS 1 Presentation of Financial Statements on 1 January 2027, with retrospective application for the 2026 comparative year. Simultaneously, certain amendments are made to other standards, such as IAS 7 Statement of Cash Flows and IAS 34 Interim Financial Reporting. The standard has been adopted by the EU. The application of IFRS 18 will involve changes to both the presentation of the primary statements, above all the income statement, and the design of disclosures in notes. Furthermore, IFRS 18 contains requirements for disclosure of performance measures used by management in the entity's external financial communication, so-called "Management-defined performance measures". Basis for consolidation Subsidiaries that are under the direct or indirect control of the Parent Company are included in the consolidated financial statements. The Group controls a company when it is exposed to, or is entitled to, variable returns resulting from its holding in the company and is able to affect the returns through its power over the company. Subsidiaries are included in the consolidated financial state- ments from the date on which the controlling influence is transferred to the Group. Subsidiaries are removed from the consolidated financial statements on the date when the Group no longer has a controlling influence. Earnings and other comprehensive income for subsidiaries that were acquired or sold during the year are reported from the date that the acquisition or disposal takes effect, as applicable. The Group attributes comprehensive income from its subsidiaries to the Parent Company’s shareholders and non-controlling interests based on their respective ownership shares. Business combinations The Group applies the acquisition method when accounting for business combinations. The consideration transferred by the Group to obtain a con- trolling influence over a subsidiary is calculated as the sum of the fair values at the acquisition date of the transferred assets, the assumed liabilities and the equity shares issued by the Group, which includes the fair value of an asset or liability that arose from an agreement on contingent consideration. Subsequent changes in the fair value of contingent consideration that has been classified as a financial liability are recognised in the income statement (the item other operating expenses or other operating income), see further under the section financial liabilities. Acquisition-related costs are expensed as they arise in the item other oper- ating expenses. Acquired assets and assumed liabilities are measured at fair value as at the acquisition date. Functional currency and presentation currency The consolidated financial statements are presented in the currency SEK, which is also the Parent Company’s functional currency. Foreign operations In the consolidated financial statements all assets, liabilities and transactions in Group companies that have a different functional currency than SEK (the Group’s reporting currency) are translated to SEK upon consolidation. The func- tional currency of Group companies remained unchanged during the reporting period. At the time of consolidation, assets and liabilities have been translated at the closing day rate. Adjustments to goodwill and fair value arising from the acquisition of a foreign operation have been reported as assets and liabilities in the foreign operation and translated to SEK at the closing day rate. Revenue and expenses have been translated to SEK at an average rate for the reporting period. Exchange rate differences are recognised directly in other comprehen- sive income and are reported in the currency exchange reserve under equity. Upon disposal of a foreign operation, the attributable accumulated translation differences that have been recognised under equity are transferred to profit or loss and recognised as part of the gain or loss on disposal. Segment reporting » Note 3 The Group is organised into two segments: Sweden and Rest of Nordics. When identifying operating segments, Group management typically considers the Group’s geographic business areas, which are its main segments. The operating segments follow the internal reporting that the Group’s chief operating decision maker monitors in the business. Each operating segment is managed separately, since it requires different types of resources and marketing methods. All transactions between the seg- ments are carried out on a commercial basis and are based on prices charged to customers who are not related parties in connection with independent sales of identical goods or services. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 109Notes
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Note 1, cont. The Group applies the same measurement principles in its segment report- ing according to IFRS 8 as in its financial statements. Shared assets that are not directly attributable to an operating segment are not allocated but are reported under Group-wide income and expenses. This applies primarily to the Group's head office. Revenue Revenue primarily stems from sales involving the execution of installations, and from construction contracts and service contracts. Contracts with customers A contract is defined by the Group as an oral or written agreement between two or more parties. Where the Group has two or more contracts with the same customer, the contracts are analysed and, under certain conditions, combined and recognised as one single aggregate contract. This applies where it is the same customer (counterparty) even if the contracts relate to different projects. Payment terms range from 30 to 90 days depending on technical discipline. Contract work Revenue must be recognised at a specific point in time or over time, depending on when control over the item sold is transferred to the customer. The Group recognises revenue when the Group’s performance creates or improves an asset that the customer controls, which is the case with contract work, since the work is performed on a property or installation owned by the customer. The customer thus benefits from the company’s performance gradually, as the work is performed. This means that the Group fulfils its obligations gradually and reports revenue over time, i.e. using the "percentage of completion" method. A project’s percentage of completion is calculated based on the expenses incurred as at the closing date in relation to the total estimated expenses that will be incurred in order to complete the assignment. This serves as the basis for earned revenue based on project costings. There may be a risk that final project results may deviate from the results that have been reported over time. Service work The revenue from service work is recognised when the services have been pro- vided based on the percentage of completion of the work at the closing date. Revenue recognition for service work is based on a forecast of the percentage of completion for each individual project and the profit or loss is gradually recognised against the expenses thus far incurred in the project. Operating leases Rental income from scaffolding is distributed evenly over the lease period. Contract modifications, Change Order Requests If there is a change or addition to an existing contract, the reporting of such a change depends on its substance. Modifications are common within the Group in the form of Change Order Requests. For example, a modification can change the scope of the contract (i.e., add further products or services or change exist- ing products/services), the agreed price, or both. The modification of a contract is reported as either: • A part of the original contract or • A new separate contract Assessments are made on a case-by-case basis as to whether a Change Order Request is considered a new contract or part of an existing contract. In cases where it is assessed that a Change Order Request is part of an existing contract, the total contract amount is adjusted at the time the contract modification is made. Performance obligations The Group enters into agreements with customers under which the Group provides a combination of products and services, e.g. installation work and associated service agreements. An assessment is then made of the agreement to determine whether it contains one performance obligation or several per- formance obligations. The Group has identified the following separate perfor- mance obligations: • Installation work including system design together with associated goods and materials. • Service work. The kind of service Instalco’s companies perform relates to occasional needs that arise for the customer and is not contractually bound. Transaction price and allocation The transaction price for an assignment is established at the inception of the contract. The Group’s assignments are typically fixed-price contracts, but some- times it also has cost-plus/partnering contracts (cost-plus/partnering projects). Cost-plus contracts are reported in accordance with the expected value method – the sum of probability-weighted amounts for contracts with similar terms. Typically, the Group does not have any variable components in its contracts, except for fines. The Group updates its assessments of the transaction price at the end of each reporting period and adjusts revenues in accordance with those assessments. Contract balances The Group recognises a contract liability for remuneration it has received pertaining to unfulfilled performance obligations and reports those amounts as “Other liabilities” in the consolidated statement of financial position. If the Group meets a performance obligation before receiving compensation for it, the Group will report a contract asset in the consolidated statement of financial position provided that nothing other than the time aspect is decisive for when that compensation is due. Interest and dividends » Note 7 Interest income and interest expense are recognised as incurred in each report- ing period by applying the effective interest method. Dividends, besides those derived from holdings in associated companies, are recognised when the right to receive payment has been established. Goodwill » Note 10 Goodwill represents the future economic benefits arising from a business combination which are not individually identified and reported separately. Goodwill is the difference between the cost of a business combination and the fair value of the acquired identifiable assets, assumed liabilities and contingent liabilities. Goodwill has an indefinite useful life and is measured at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units or groups of cash-generating units and is not amortised but instead is tested annually for impairment. See further description of the method for impairment testing. Other intangible assets » Note 10 Other intangible assets are recognised within the Group at cost minus accumu- lated amortisation and any impairment losses. Cost includes the purchase price and any expenditure directly attributable to the asset. Additional expenses are added to the asset’s carrying amount only when it is probable that the future economic benefits associated with the asset will flow to the Group and the asset’s cost can be measured reliably. Other intangible assets are amortised over their estimated useful life. The following amortisation periods are applied: • Computer systems, licences 3–5 years • Right-of-use assets 3–10 years • Customer relations 3–10 years Property, plant and equipment » Note 11 Property, plant and equipment are recognised within the Group at cost minus accumulated depreciation and any impairment losses. Cost includes the pur- chase price and any expenditure directly attributable to bringing the asset to its intended location and condition for its intended use. Additional expenses are added to the asset’s carrying amount or recognised as a separate asset, whichever is appropriate, only when it is probable that the future economic benefits associated with the asset will flow to the Group and the asset’s cost can be measured reliably. The carrying amount for assets that have been disposed of is removed from the balance sheet. All other forms of repair and maintenance are expensed as incurred in the income statement. Gains or losses arising from the disposal of property, plant and equipment are calculated as the difference between what has been received and the carrying amount of the asset. The gain or loss is then recognised in the income statement as part of "Other operating income" or "Other operating expenses" respectively. Property, plant and equipment is depreciated over its estimated useful life. The following depreciation periods are applied: • Machinery and tools 3–5 years • Equipment, installations and other technical facilities 3–5 years • Scaffolding 10–20 years Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 110Notes
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Note 1, cont. Impairment testing of goodwill, other intangible assets and property, plant and equipment For impairment testing, assets are grouped together as cash-generating units (CGUs) which are the smallest identifiable groups of assets that generate largely independent cash inflows. Goodwill is allocated to the CGUs that are expected to benefit from synergy effects in related business combinations. Impairment testing for the CGUs to which goodwill has been attributed corresponds to the Group’s operating segments, Sweden and Rest of Nordics, since goodwill is not monitored internally at any lower level. The Sweden segment is the dominant market and the growth in the Rest of Nordics segment has taken place using the same business model and utilising experience gained in the Sweden seg- ment. Instalco’s subsidiaries are integrated into the Group’s business model, collaborative culture and values such that assets and cash flows cannot be distinguished at a lower level. In many cases more than one company works on the same project, and companies also submit joint tenders and share resources. Within the framework of the new external reporting structure to be imple- mented from 2026, Finland and Norway have also been tested separately. These impairment tests have been carried out using the same conditions and assumptions as the ordinary tests at segment level. All other individual assets or CGUs are tested for impairment whenever there are events or changes of circumstances indicating that the carrying amount is not recoverable. An impairment loss is recognised for the amount by which the asset’s (or CGU’s) carrying amount exceeds its recoverable amount, which is the higher of the fair value less cost of disposal and the value in use. In the Group, the recov- erable amount consists of the value in use. In order to determine the value in use, Group management estimates the expected future cash flows from each CGU and determines an appropriate discount rate in order to calculate the present value of these cash flows. The information used for impairment testing is directly linked to the Group’s most recently approved budget, adjusted as needed to exclude the effects of future reorganisations and improvements of assets. A discount rate is established for each CGU which reflects current market assessments of the time value of money, along with risk factors specific to the asset type. Impairment of a CGU first lowers the carrying amount of any goodwill that has been recognised and allocated to it. Any remaining impairment is deducted proportionally from the other assets in the CGU. With the exception of goodwill, a new assessment is made of all assets to determine whether any impairment loss recognised previously is no longer justified. An impairment loss is reversed (but not for goodwill) if the asset’s or CGU’s recoverable amount exceeds its carrying amount. Leases The Group’s lease agreements include premises, cars, tools and machinery. Leases are reported in the balance sheet, except for short-term leases (leases with a term of 12 months or less) and leases where the underlying asset is of low value. At the inception of a contract, the Group assesses whether a contract con- veys the right to control the use of an identified asset for a period in exchange for consideration, in which case it is classified as a lease. The Group recognises a right-of-use asset (lease asset) and a lease liability at the commencement date of the lease. The right-of-use asset is initially meas- ured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of costs for restoring the underlying asset, less any lease incentives received. The right-of-use asset is thereafter depreciated on a straight-line basis over the useful life, which is considered to correspond to the lease term. The Group’s lease agreements typically run for 3–5 years, with the exception of a limited number of leases for premises that run for a longer period. The right-of-use asset is periodically adjusted for certain remeasurements of the lease liability and any impairment. The lease liability is initially estimated as the present value of the remaining lease fees, discounted using the rate implicit in the lease or, if it is not possible to determine that rate, using the Group’s marginal lending rate. In most cases, the Group uses its marginal borrowing rate as the discount rate, with the addi- tion of a risk premium for each asset category. The lease liability is measured at amortised cost using the effective interest method and is remeasured when changes in future lease payments arise as a result of changes in the index or if the Group changes its assessment of whether it will constitute a purchase, extension or termination of the lease. A corresponding adjustment is made to the reported amount of the value in use, with any surplus over the asset’s carrying amount recognised as profit or loss. The Group has chosen to report short-term leases (agreements with a contract period of 12 months or less) and leases for which the underlying asset has a low value by utilising the practical expedient found in IFRS 16. These are lease agreements for such things as office equipment and certain types of IT equipment. Rather than reporting a right-of-use asset and a lease liability, the lease fees for these types of leases are expensed on a straight-line basis over the lease term. The Group makes use of extension options in cases where the leases on premises are shorter than three years. The basis for assessment of each lease is each company’s marketing plan, which extends for a maximum of three years. The Group considers it reasonably certain that the extension option will be utilised in leases with a duration shorter than three years. FINANCIAL INSTRUMENTS Recognition and measurement on initial recognition Financial assets and financial liabilities are recognised when the Group becomes a party to the contract for the financial instrument’s contractual terms. These are measured at fair value on initial recognition, adjusted for transaction costs, except for financial instruments belonging to the category of financial assets or financial liabilities measured at fair value through profit or loss. Such instruments are measured at fair value on initial recognition. Subse- quent measurement of financial assets and liabilities is described below. Financial assets are removed from the statement of financial position when the contractual rights to the financial asset expire, or when the financial asset and all significant risks and rewards are transferred. A financial liability is removed from the statement of financial position when it is extinguished, fulfilled, or cancelled. Classification and subsequent measurement of financial assets » Note 12 With regard to subsequent measurement, financial assets are measured based on the category in which they were initially classified. The Group has the follow- ing categories of financial assets: • Financial assets measured at amortised cost • Financial assets measured at fair value through profit or loss The impairment requirement for all financial assets except those measured at fair value through profit or loss must be tested at least at the end of each reporting period to determine whether there is objective evidence of an impair- ment requirement for a financial asset or group of financial assets. Different criteria are used for each category of financial assets to determine the impair- ment requirement, which are described below. All income and expenses relating to financial assets recognised in profit or loss are classified as "Financial expenses" or "Financial income", except for the impairment of accounts receivable which is recognised in the item "Other external costs". Financial assets measured at amortised cost Financial assets held within the scope of the Group’s business model for the purpose of collecting their contractual cash flows (consisting of the principal amount and interest on the principal amount) are classified as financial assets at amortised cost. Loan receivables and accounts receivable are financial assets that are not derivative instruments, with fixed or determinable payments and which are not listed on an active market. After initial recognition they are meas- ured at amortised cost using the effective interest method, after deductions for any impairment. No discounting is applied if the effect of discounting is imma- terial. The Group’s cash and cash equivalents, accounts receivable and most of its other receivables belong to this category of financial instruments. For accounts receivable and contract assets, the simplified approach is applied to calculate the expected credit losses. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 111Notes
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Note 1, cont. Classification and subsequent measurement of financial liabilities The Group’s financial liabilities include loans, accounts payable and other liabilities. Financial liabilities are measured after initial recognition at amortised cost using the effective interest method, except for financial liabilities that are identified as measured at fair value through profit or loss, which are recognised at fair value and with gains or losses recognised in profit or loss after initial recognition. The Group is party to agreements concerning contingent consid- eration arising in conjunction with acquisitions that are reported at fair value through the income statement. Additional consideration is a contingent consideration typically based on the results of the acquired company over the next few years, either as a binary outcome if a certain level of results is met, or as a ladder where the outcome is higher the higher the profit level achieved by the acquired entity over a pre- determined future accounting period. Usually, the additional consideration is triggered if the conditions are met, after one to three years from the acquisition date. At the time of the transaction, the additional consideration is measured at fair value by discounting the present value of the likely outcome with a discount rate. The likely outcome is based on the Group’s forecasts for each entity and depends on future results achieved in the companies and has a predetermined maximum level. All interest-related fees and, where applicable, changes in an instrument’s fair value that are recognised in profit or loss are included in the items “Finan- cial expenses” or “Financial income”. Income taxes The tax expense reported in the income statement consists of the sum of deferred tax and current tax that is not reported in other comprehensive income or directly in equity. Calculation of current tax is based on tax rates and tax rules that have been enacted or substantively enacted at the end of the reporting period. Deferred tax is calculated on all temporary differences in accordance with the “balance sheet approach”. The Group does not recognise deferred tax on temporary differences arising from goodwill or investments in subsidiaries. Equity, reserves and dividends Share capital represents the nominal value of issued shares. Issued options are classified as equity if they are not mandatorily redeemable, or contain agree- ments on mandatory payments to the holder. The share premium reserve includes any premiums received in connection with a new share issue. Any transaction costs associated with the issue of new shares are deducted from the premium, taking into account any income tax effects. Buyback of treasury shares includes the value of the shares at the time of purchase, and the amount is reported as a deduction in equity. Other components of equity include: • Retained earnings are all capitalised gains and share-based payments for current and previous periods. • All transactions with owners of the Parent Company are reported separately under equity. The translation reserve includes all foreign exchange differences arising from the translation of financial statements of foreign operations that have prepared their financial statements in a different currency than the currency in which the Group’s financial statements are presented. Post-employment benefits The Group provides post-employment benefits through various essentially defined contribution pension plans. For a few employees who are not senior executives, there is a pension solu- tion in the form of endowment insurance that has been pledged for pension obligations. The asset constitutes a financial instrument measured at fair value through profit or loss (see the separate section on financial instruments). The liability, i.e. the pension obligation, consists of the same value as the asset, plus additional special payroll tax. Short-term employee benefits Short-term employee benefits, including holiday pay, are current liabilities measured at the undiscounted amount that the Group is expected to pay as a result of the unused entitlement. Short-term benefits are expensed as they are earned. Provisions and contingent liabilities » Note 19 Provisions for product warranties, legal proceedings, loss-making contracts or other claims are recognised when the Group has a legal or constructive obligation as a result of a past event, it is probable that an outflow of economic resources will be required and the amounts can be estimated reliably. The timing or amount of the outflow may still be uncertain. Contracts contain war- ranties for the work that is performed, in accordance with industry practice. The warranty is never a revenue-generating transaction. Warranties are managed by making a provision to a warranty reserve that is the average of the last three years’ costs for warranty work. If a major claim arises, it is immediately recog- nised. Provisions are measured at the estimated amount required to settle the present obligation, based on the most reliable information available on the closing date, including the risks and uncertainties associated with the pres- ent obligation. In cases where there are a number of similar obligations, the likelihood of an outflow is determined by making an overall assessment of the obligations. Provisions are discounted to their present value whenever the time value of money is material. No liability is recognised if an outflow of economic resources as a result of present obligations is unlikely. Such situations are recognised as contingent liabilities unless the likelihood of an outflow of resources is extremely low. For more information on contingent liabilities, see » Note 23. SIGNIFICANT ESTIMATES AND JUDGMENTS WHEN APPLYING ACCOUNTING PRINCIPLES Estimates and judgments are continuously evaluated and based on historical experience and other factors, including expectations of future events that are considered reasonable in the current circumstances. Significant assessments by Group management » Note 27 When preparing the financial statements, the Group’s Board of Directors and CEO make a number of judgments, estimates and assumptions concerning the recognition and measurement of assets, liabilities, income and expenses. Information about the estimates and assumptions that have the most signif- icant impact on the recognition and measurement of assets, liabilities, revenue and expenses is provided below. The actual outcome may deviate significantly. Assessments made by Group management when applying IFRS that have a significant impact on the financial statements and estimates that entail material adjustments in subsequent years’ financial statements are described in more detail in » Note 27. Impairment of non-financial assets and goodwill » Note 10 When testing for impairment, Group management must calculate the recover- able amount for each asset or cash-generating unit based on expected future cash flows and using an appropriate discount rate for the future cash flows. Uncertainty exists in the assumptions concerning future operating profit and when establishing an appropriate discount rate. For more information on impairment testing, see » Note 10. Business combinations and fair value measurement » Note 26 The Group is continually acquiring companies, these being primarily small com- panies individually, which is why no single acquisition is considered material. For each acquisition, the acquired company is investigated and assessed based on, among other things, IFRS 3 Business Combinations and IAS 38 Intangible Assets, in order to identify whether there are acquired intangible assets that should be assigned a value. According to IAS 38, an intangible asset is based on intangible values, such as customer relationships and order backlog. However, it is not always the case that these intangible values meet the definition of an intangible asset according to IAS 38. If this is not the case, its value is instead included in the goodwill item. The Group carefully assesses the likelihood of expected future economic benefits based on reasonable and well-founded assumptions that constitute the best assessment of the economic conditions. When calculating fair values, valuation techniques are used for the specific assets and liabilities acquired in a business combination. In particular, the fair value of contingent considerations depends on the outcome of several varia- bles, including the acquired company’s future profitability. The Group uses valuation techniques when calculating the fair value of financial instruments (in cases where no prices exist in active markets) and for non-financial assets. This involves making estimates and assumptions that are consistent with how market participants would price the instrument. As far as possible, observable data is used in the assumptions, but this is not always Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 112Notes
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Note 1, cont. available. In these cases, the best information available is used. An estimated fair value may differ from the actual price that could be achieved in a transac- tion on arm’s length terms at the balance sheet date. For acquisitions, an acquisition structure is typically applied that consists of the basic purchase price and additional contingent consideration. The outcome of contingent considerations is dependent on future results achieved in the companies, where the outcome is higher the higher the profit level achieved over a predetermined period. The contingent considerations fall due for pay- ment within three years and have a fixed maximum level. Contingent consider- ations are measured at fair value attributable to Level 3 and are reported under Non-current liabilities and Other current liabilities in the balance sheet. For more information on these contingent considerations and business combina- tions. » Note 26 Revenue from construction contracts » Note 16 Recognition of revenue from construction contracts requires management to make material judgments when determining the actual degree of completion, the anticipated costs for completing the work and monitoring the forecast final outcome. The amount of recognised revenue and associated contract assets for clients reflects Group management’s best assessment of the outcome and percentage of completion for each contract. In more complex contracts there is a consider- able amount of uncertainty when assessing the costs for completion and prof- itability. The Group recognises revenue in its projects over time in accordance with the percentage of completion method. This involves comparing actual expenditure to the total expected expenditure at any given time. The Group has a well-established process for following up on the percentage of completion and total expected costs of each project. This includes monitoring and assess- ing the risk of losses that could occur in the project. Environmental and climate-related matters Risks caused by climate change may have future negative effects on the Group’s operations and activities. These risks include transition risks (e.g. regulatory changes and reputational risks) and physical risks (although the risk of physical damage is low due to the company’s operations and geographical locations); see also page 51. Society’s green transition to counteract climate change may also have a positive impact on the Group’s operations and activities, as it drives demand for resource-saving installations. During the year, no environmental and climate-related risks have materially affected Instalco’s accounting principles or the financial reporting. Management continuously evaluates the effects of climate-related matters. Parent Company’s recognition and measurement principles The Parent Company’s annual report has been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities. RFR 2 states that, in its annual report for the legal entity, the Parent Company is to apply all EU-approved IFRS and opinions to the extent possible without deviat- ing from the Annual Accounts Act and taking into consideration the relationship between accounting and taxation. The recommendation states which excep- tions and additions shall be made to IFRS. The Parent Company’s annual report and financial statements are presented in the company’s reporting currency, which is SEK. The Parent Company’s recognition and measurement principles are the same as those of the Group, except for what is stated below. Presentation of the financial statements The income statement and balance sheet are presented as required by the Annual Accounts Act. Presentation of the statement of changes in equity is the same as for the Group, but must contain the columns specified in the Annual Accounts Act. There are furthermore differences in certain terminology com- pared to the consolidated financial statements, primarily for financial income and expenses and for equity. Shares in subsidiaries Shares in subsidiaries are recognised at cost less any impairment losses. Cost includes acquisition-related expenses and any additional consideration. When there is an indication that shares in subsidiaries have decreased in value, a calculation is made of the recoverable amount. If this is lower than the carrying amount, an impairment loss is recognised. Impairment losses are recognised in the item “Income from shares in Group companies”. Group contributions All Group contributions made and received are reported as appropriations. Financial instruments Financial instruments are recognised at cost. At each closing date, the Parent Company assesses whether there is any indication of impairment for any of its financial non-current assets. An impairment loss is recognised if the decline in value is expected to be lasting. Impairment losses on interest-bearing financial assets reported at amortised cost are calculated as the difference between the asset’s carrying amount and the present value of management’s best estimate of the future cash flows, discounted using the asset’s original effective interest rate. The amount of impairment loss for other financial non-current assets is calculated as the difference between the carrying amount and the higher of the fair value less costs to sell and the present value of future cash flows (based on management’s best estimate). Note 2. Revenue breakdown 2025 Revenue by significant category Contract work Service work Total Sweden 6,152 3,482 9,635 Rest of Nordics 2,460 1,503 3,963 Net sales 8,612 4,986 13,598 2024 Revenue by significant category Contract work Service work Total Sweden 6,056 3,371 9,427 Rest of Nordics 2,848 1,415 4,263 Net sales 8,905 4,786 13,690 1) For more detailed information see Note 1 Recognition and measurement principles, under the heading Revenue. For information on contract assets and contract liabilities, see Note 16. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 113Notes
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Note 3. Segment reporting An operating segment is a part of the Group that conducts operations from which it can generate income and incur costs and for which there is independ- ent financial information available. The Group’s operations are divided into segments based on the subsidiaries' geographical location. These segments consist of Sweden and Rest of Nordics, which are the reportable segments for the Group. The market division that has been made refers to a natural bound- ary and within the Group, revenue streams and cost structures are equivalent. The Group’s CEO, the company’s chief operating decision-maker, monitors the operations’ results and decides on resource allocation based on the services performed and the goods sold within each segment and geography. Internal pricing within the Group is on market terms. The segments are evaluated based on net sales and EBITA. Net sales consist of external income from customers which, in all material respects, is recognised over time. The part of the operations that does not meet the definition of an operating segment is referred to as “Other”. At Instalco, this consists of the Parent Com- pany, the two holding companies located at the top of the Group, and results from shares in associated companies. From 1 January 2026, Instalco’s external reporting structure will change and the current segment division Sweden, Rest of Nordics and Other will be replaced by Sweden, Norway, Finland and Other. Disclosures for the segments are reported as follows for the current reporting periods: 2025 Sweden Rest of Nordics Other Total Net sales 9,635 3,963 – 13,598 EBITA 554 251 –6 800 Amortisation and impairment of intangible assets –62 –70 – –132 Net financial items –19 –8 –118 –145 Earnings before taxes 474 173 –124 523 Other information Goodwill 3,513 1,697 – 5,210 Other tangible and intangible assets 964 408 8 1,380 Total tangible and intangible assets 4,477 2,105 8 6,590 2024 Sweden Rest of Nordics Other Total Net sales 9,427 4,263 – 13,690 EBITA 613 265 0 879 Amortisation and impairment of intangible assets –71 –118 – –189 Net financial items –11 –9 –184 –204 Earnings before taxes 531 139 –184 486 Other information Goodwill 3,495 1,806 – 5,301 Other tangible and intangible assets 1,000 533 8 1,540 Total tangible and intangible assets 4,495 2,339 8 6,841 Revenue from external customers by country, based on where the subsidiaries are located: 2025 2024 Sweden 9,635 9,427 Norway 2,299 2,671 Finland 1,664 1,592 Total 13,598 13,690 Property, plant and equipment, other than financial instruments and deferred tax assets (there are no assets in connection with post-employment benefits or rights under insurance contracts), are distributed by country as follows: 31/12/2025 31/12/2024 Sweden 756 733 Norway 159 193 Finland 136 163 Total 1,051 1,089 The Instalco Group does not have revenue from any single customer amount- ing to 10 percent or more, which is why no information has been provided on this. Note 4. Remuneration of auditor Group Parent Company Expensed amount and other remuneration amounts to: 2025 2024 2025 2024 Grant Thornton Audit engagement 19 20 2 2 Audit activities in addition to the auditing engagement 1 1 0 0 Tax advice 0 0 0 0 Other services 0 0 0 0 Other audit companies Audit engagement 0 0 – – Audit activities in addition to the auditing engagement – 0 – – Tax advice 0 0 – – Other services 1 1 – – Total 22 23 2 2 The audit engagement refers to the fees for the statutory audit, that is, such work that has been necessary to issue the auditor’s report, as well as so-called audit advice provided in connection with the audit engagement. Other audit firms consist of several audit firms where none accounts for a material item in 2025 or the previous year. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 114Notes
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Note 5. Personnel costs and employees The breakdown of costs recognised for remuneration of employees is as follows: Group Parent Company 2025 2024 2025 2024 Salaries – Board and CEO 13 9 13 9 Salaries – other employees 3,555 3,502 – – Pensions, defined contribution – CEO 2 2 2 2 Pensions, defined contribution – other employees 325 318 0 0 Other social security contributions 930 903 4 3 Total 4,825 4,734 19 14 Expensed remuneration and other benefits to the Board of Directors, CEO and other senior executives: 2025 2024 SEK 000s Basic salary/ Board fee1) Variable remu- neration Other benefits2) Total Basic salary/ Board fee1) Variable remu- neration Other benefits2) Total Per Sjöstrand, Chairman of the Board until 250731 and Board member and CEO from 2508013) 2,523 – – 2,523 543 – 37 580 Jonny Alvarsson, Chairman of the Board from 250801 420 – – 420 325 – – 325 Camilla Öberg 498 – – 498 480 – – 480 Per Leopoldsson 416 – – 416 403 – – 403 Carina Qvarngård 416 – – 416 403 – – 403 Carina Edblad 335 – – 335 325 – – 325 Ulf Wretskog 335 – – 335 325 – – 325 Robin Boheman, CEO until 250731 9,132 388 83 9,603 4,631 1,134 78 5,843 Other senior executives4) 16,432 3,207 608 20,247 16,066 3,725 618 20,409 Total 30,507 3,595 691 34,793 23,501 4,859 733 29,093 1) Board fee was paid as salary. 2) Other benefits consist of car allowance, fuel subsidy and health insurance. 3) In addition to a board fee of SEK 585 thousand (543), consulting fees under a prior agreement have been paid to Kreativo AB and Voltage Ventures AB (Per Sjöstrand) totalling SEK 2,273 thousand (185). Of the current year amount, SEK 1,938 thousand relates to remuneration for the role of Chief Executive Officer from 1 August 2025. In addition, remuneration has been paid for the use of a conference facility to Kreativo AB of SEK 335 (0) thousand. 4) Robin Boheman served as Chief Executive Officer until 31 July 2025. Per Sjöstrand took up the position of Chief Executive Officer on 1 August 2025. The former Chief Executive Officer received a notice period salary equivalent to six months' salary as well as a severance payment equivalent to twelve months' salary. 5) At the end of the period, other senior executives consisted of 9 (7) individuals, of whom 2 (1) were women. Number of employees The Group Parent Company 2025 2024 2025 2024 Average number of employees 6,123 6,145 1 1 Of which women 444 427 1 1 Of which women, % 7 7 – – The average number of employees is distributed by country as follows: The Group 2025 The Group 2024 Total Of which women Total Of which women Sweden 4,259 331 4,201 309 Norway 1,100 66 1,222 76 Finland 764 47 722 49 Total 6,123 444 6,145 434 Remuneration to the Board of Directors, the CEO and other senior exec - utives, and the preparation and decision-making process The guidelines that applied during the 2025 financial year for remuneration to senior executives were adopted at the 2022 Annual General Meeting. The princi- ple for remuneration to the Board of Directors, the CEO and group management is that it shall be competitive. The Nomination Committee submits proposals for Board fees to the Annual General Meeting. Fees to the Board are paid in accordance with the resolution of the Annual General Meeting. With regard to remuneration to the CEO, group management and other senior executives in the Group, the Board also serves as a remuneration committee, and its duties are conducted as an integrated part of the Board's work. CEO Per Sjöstrand does not participate in the work of the remuneration committee. Remuneration to senior executives may consist of the following components: fixed cash salary, variable cash remuneration, pension benefits and other benefits. In addition, incentive programmes apply as described below. The remuneration committee takes into account the guidelines for remuneration to senior executives resolved by the Annual General Meeting of Instalco AB. The Company has during 2025 complied with the applicable guidelines. Under the guidelines, the Board of Directors may resolve to temporarily derogate from the guidelines, in whole or in part, if in a specific case there is special cause for doing so and a derogation is necessary to serve the company's long-term interests, including its sustainability agenda, or to ensure the company's financial viability. In connection with Per Sjöstrand's appointment as acting CEO, the Board resolved on such a derogation, whereby Per Sjöstrand's remuneration was paid in the form of a consultancy fee. This was motivated by the Board's assessment that it was of great importance to the company to appoint an acting CEO in order to ensure continuity in the compa- ny's management and operations. A derogation from the remuneration guide- lines was deemed necessary to enable Per Sjöstrand's appointment and was therefore considered to be in line with the company's long-term interests. No derogations have been made from the decision-making process that, under the guidelines, shall be applied when determining remuneration. Board of Directors At the end of the period, the Board consisted of 7 (7) ordinary members, of whom 3 (3) were women. The fee resolved by the Annual General Meeting, totalling SEK 2,960 (2,860) thousand, is distributed in accordance with the res- olution of the Annual General Meeting. In addition to Board fees, consultancy fees under agreement have been paid to Kreativo AB and Voltage Ventures AB (Per Sjöstrand) of SEK 2,273 (185) thousand, of which SEK 1,938 thousand relates to remuneration for the role as CEO from 1 August 2025. CEO and Group management Salary and other remuneration of the CEO and Group management during the financial year is presented in the table. Severance pay for the CEO may be paid for up to twelve months’ salary, of which at most half of the amount is non-de- Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 115Notes
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Note 5, cont. ductible. Besides the obligations to pay ongoing remuneration such as salary, pension and other benefits, there are no other previously decided benefits that have not fallen due for payment. Outstanding long-term share-related incentive programmes At the end of the financial year, Instalco had three outstanding warrant pro- grammes corresponding to a total of 6,950,000 shares directed to the Extended management team, CEOs of subsidiaries, and other key individuals in the Group. The purpose of long-term share incentive programmes is to create the conditions for boosting the motivation of employees that the Group has identified as important and trusted over the short and long term. The Board is of the opinion that an incentive programme in line with the present proposal is advantageous to the Group and the company’s shareholders. LTI 2025 At the Instalco Annual General Meeting on 6 May 2025, it was resolved to implement an incentive scheme for the Group’s senior executives and other key employees by issuing warrants providing the right to subscribe for new shares in the company. If all the warrants are fully subscribed, a maximum of 2,250,000 new shares may be issued, corresponding to a dilution of approxi- mately 0.8 percent of both the current number of shares outstanding and the maximum number of additional shares from previous programmes, subject to any recalculation of the number of shares that each warrant entitles the holder to subscribe for. Each warrant entitles the holder to subscribe for one new share in the Company at an exercise price corresponding to 115 percent of the volume-weighted average price according to Nasdaq Stockholm’s official price list for the share during the period of five banking days after the 2025 AGM. The warrants have been transferred on market terms at a price (premium) that was based on an estimated market value of the warrants as established by an independent valuation institute using the Black & Scholes valuation model. Notification of subscription for shares may take place during the period from 22 May 2028 to 16 June 2028 inclusive, or such earlier date as may follow according to certain circumstances as set out in the terms and conditions of the warrants. LTI 2024 At the Instalco Annual General Meeting on 6 May 2024, it was resolved to imple- ment an incentive programme for the Group’s senior executives and other key individuals by issuing warrants providing the right to subscribe for new shares in the company. In the event of full subscription based on all warrants, a maximum of 2,350,000 new shares may be issued, corresponding to a dilution of approximately 0.9 percent of both the current number of shares outstanding and the maximum number of additional shares from previous programmes, subject to any recalculation of the number of shares that each warrant enti- tles the holder to subscribe for. Each warrant entitles the holder to subscribe for one new share in the Company at an exercise price corresponding to 115 percent of the volume-weighted average price according to Nasdaq Stockholm’s official price list for the share during the period of five banking days following the 2024 Annual General Meeting. The warrants have been transferred on market terms at a price (premium) established based on an estimated market value for the warrants using the Black & Scholes valuation model, as calculated by an independent valuation institute. Notification of subscription for shares may take place during the period from 24 May 2027 to 18 June 2027 inclusive, or such earlier date as may follow according to certain circumstances as set out in the terms and conditions of the warrants. LTI 2023 The Instalco Annual General Meeting on 5 May 2023 resolved to implement an incentive programme for the Group’s senior executives and other key individ- uals by issuing warrants providing the right to subscribe for new shares in the company. If all the warrants are fully subscribed, a maximum of 2,350,000 new shares may be issued, corresponding to a dilutive effect of around 0.9 percent of both the current number of shares outstanding and the maximum number of additional shares from previous programmes, subject to any recalculation of the number of shares that each warrant entitles the holder to subscribe for. Each warrant entitles the holder to subscribe for one new share in the Com- pany at an exercise price corresponding to 115 percent of the volume-weighted average price according to Nasdaq Stockholm’s official listed prices for the share over the five banking days following the 2023 Annual General Meeting. The warrants have been transferred on market terms at a price (premium) that was based on an estimated market value of the warrants as established by an independent valuation institute using the Black & Scholes calculation model. Warrant holders may notify their intent to subscribe for shares during the period 22 May 2026 to 16 June 2026, or an earlier date that could arise in certain circumstances as explained in the terms and conditions that apply to the warrants. Guidelines for remuneration to senior executives 2025 These guidelines were resolved by the 2022 Annual General Meeting. The guidelines apply to remuneration for Board members, the CEO, and other members of Group management (jointly “senior executives”). The guidelines shall be applied to remuneration agreed, and changes made to already agreed remuneration, after the guidelines were adopted by the 2022 Annual General Meeting. The guidelines do not cover remuneration resolved by the General Meeting. The guidelines’ promotion of the Company’s business strategy, long-term interests, and sustainability A successful implementation of the Company’s business strategy and the safeguarding of the Company’s long-term interests, including its sustainability agenda, requires that the Company can recruit and retain qualified employees. For this, it is required that the Company can offer competitive remuneration. These guidelines enable senior executives to be offered a competitive total remuneration. Variable cash remuneration covered by these guidelines shall aim to pro- mote the Company’s business strategy and long-term interests, including its sustainability agenda. This is implemented by ensuring that the financial and non-financial targets that determine the outcome of variable cash remunera- tion have a clear link to the business strategy and the Company’s sustainability agenda. Variable cash remuneration is described in more detail in the section “Variable cash remuneration” below. For more information about the company’s business strategy, see the com- pany’s website (www.instalco.se). Forms of remuneration etc. The total remuneration for each senior executive shall be on market terms and may consist of the following components: fixed cash salary, variable cash remuneration, pension benefits and other benefits. The General Meeting may, additionally – and independently of these guidelines – resolve on, for example, share and share-price related remuneration. Fixed and variable remuneration shall be related to the senior executive’s responsibility and authority. Variable cash remuneration Fulfilment of criteria for payment of variable cash remuneration shall be measurable over a period of one year. The variable cash remuneration shall have a maximum limit and be related to the fixed salary, and may amount to a maximum of 50 percent of the fixed annual cash salary. The variable cash remuneration shall be linked to predetermined and meas- urable criteria that may be financial or non-financial. These may also consist of individualised quantitative or qualitative targets. The outcome in relation to these predetermined targets forms the basis for the total potential to receive variable cash remuneration. The criteria shall be designed so that they promote the Company’s business strategy and long-term interests, including its sustain- ability agenda, by, for example, having a clear link to the business strategy or promoting the senior executive’s long-term development. Outstanding share-related incentive programmes: Outstanding programme Number of options Corresponding number of shares Percentage of total number of shares Price per option Exercise price per option Exercise period 2023/2026 2,350,000 2,350,000 0.90% 2.09 SEK/7.27 SEK 64.90 SEK 22 May 2026 – 16 June 2026 2024/2027 2,350,000 2,350,000 0.90% 7.74 SEK 44.32 SEK 24 May 2027 – 18 June 2027 2025/2028 2,250,000 2,250,000 0.80% 2.55 SEK 31.40 SEK 22 May 2028 – 16 June 2028 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 116Notes
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Once the measurement period for fulfilment of the criteria for payment of variable cash remuneration has ended, the extent to which the criteria have been fulfilled shall be assessed/determined. The Board of Directors is respon- sible for the assessment as regards variable cash remuneration to the CEO. Regarding variable cash remuneration for other senior executives, the CEO is responsible for the assessment. Regarding financial targets, the assessment shall be based on the financial information most recently published by the Company. Additional variable cash remuneration may be paid in extraordinary circum- stances, provided that such extraordinary arrangements are limited in time and only made at the individual level either for the purpose of recruiting or retaining senior executives, or as compensation for extraordinary work efforts beyond the senior executive’s ordinary duties. Such remuneration may not exceed an amount corresponding to 100 percent of the fixed annual cash salary and may not be paid more than once per year and per individual. Decisions on such remuneration for the CEO shall be made by the Board of Directors based on a proposal from the Remuneration Committee. Decisions on such remuner- ation for other senior executives shall be made by the Remuneration Commit- tee based on a proposal from the CEO. Pension and insurance For senior executives, pension benefits, including health insurance, shall be defined contribution plans. Variable cash remuneration shall be pensionable. Pension premiums for defined contribution pensions shall be no more than 35 percent of the fixed and variable annual cash salary. Other benefits Other benefits may include life insurance, health insurance and car benefits. Such benefits may total a maximum of 15 percent of the fixed annual cash salary. With regard to employment relationships governed by rules other than Swedish ones, appropriate adjustments may be made in respect of pension benefits and other benefits to comply with such mandatory rules or established local practice, whereby the overall purpose of these guidelines shall be met as far as possible. For senior executives who are stationed in a country other than their home country, additional remuneration and other benefits may be paid to a reason- able extent, taking into account the special circumstances associated with such foreign posting, whereby the overall purpose of these guidelines shall be met as far as possible. Such benefits may total a maximum of 20 percent of the fixed annual cash salary. Remuneration to Board members in addition to Board fees To the extent a non-employee Board member elected by the General Meet- ing performs work on behalf of the Company, in addition to the Board work, consultancy fees and other remuneration for such work may be paid. Decisions regarding consultancy fees and other remuneration to non-employee Board members elected by the General Meeting are made by the Board. Termination of employment Upon termination of employment, the notice period may be a maximum of twelve months. The notice period shall normally be six months for the CEO and three to six months for other senior executives. Upon termination by the senior executive, the notice period may be a maximum of six months, without the right to severance pay. Fixed cash salary during the notice period and severance pay may not, in aggregate, exceed an amount corresponding to the fixed cash salary for 18 months. In addition, compensation for any non-compete undertaking may be paid. Such compensation shall compensate for any loss of income and shall only be paid to the extent that the former senior executive is not entitled to severance pay. The compensation shall amount to a maximum of 100 percent of the fixed cash salary at the time of termination, unless otherwise follows from manda- tory collective bargaining agreement provisions, and be paid during the period that the non-compete undertaking applies, which shall be a maximum of twelve months after the termination of employment. Employee salary and terms of employment In the preparation of the Board of Directors’ proposal for these remuneration guidelines, the salary and terms of employment for the Company’s employees have been taken into account, as information on the employees’ total remuner- ation, the components of the remuneration and the increase and growth rate of the remuneration over time has formed part of the basis for the Board of Directors’ decision in evaluating the reasonableness of the guidelines and the limitations resulting from them. Decision-making process for determining, reviewing and implementing the guidelines The Board has established a Remuneration Committee. The Remuneration Committee's tasks include preparing the Board of Directors’ decision regarding proposals for guidelines for remuneration to senior executives. The Board of Directors shall prepare a proposal for new guidelines at least every four years and submit the proposal to the AGM for decision. The guidelines shall remain in force until new guidelines have been adopted by the general meeting. The Remuneration Committee shall also monitor and evaluate programmes for variable remuneration for the company management, the application of the guidelines for remuneration to senior executives as well as the current remu- neration structures and remuneration levels in the Company. The Remuneration Committee members are independent in relation to the Company and the company management. When the Board of Directors consid- ers and makes decisions on remuneration-related matters, the CEO or other members of the company management are not present, to the extent that they are affected by the matters. Derogation from the guidelines The Board of Directors may resolve to temporarily derogate from the guide- lines, in whole or in part, if in a specific case there is special cause for doing so and a derogation is necessary to serve the Company’s long-term interests, including its sustainability agenda, or to ensure the Company’s financial viabil- ity. As stated above, the remuneration committee’s duties include preparing the Board’s decisions on remuneration matters, which includes decisions on derogations from the guidelines. Note 6. Income from shares in Group companies Parent Company 2025 2024 Dividends 180 55 Total 180 55 Note 7. Financial expenses/Interest expenses and similar profit or loss items Group Parent Company 2025 2024 2025 2024 Interest expenses, external 126 162 6 8 Exchange losses 25 34 – – Other 41 39 7 2 Total 192 235 13 10 Note 5, cont. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 117Notes
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Note 8. Taxes The most important components of the tax expense for the financial year and the relationship between the expected tax expense based on the Swedish effec- tive tax rate of 20.6 percent (20.6) and the reported tax expense in the income statement are as follows: The Group Parent Company 2025 2024 2024 2023 Earnings before taxes 523 486 117 54 Tax according to the current tax rate in Sweden, 20.6 percent –108 –100 –37 –11 Difference attributable to foreign tax rates –1 –1 – – Adjustment of prior years’ tax 1 1 – – Adjustment tax expense acquired companies – 0 – – Non-taxable income 4 8 37 11 Non-deductible expenses –8 –10 –2 –2 Losses for the year for which no deferred tax asset has been recognised –31 –24 – – Loss carryforward utilised during the year, not previously recognised as an asset –8 0 – – Other 3 5 1 1 Reported tax in the income statement –147 –122 –1 0 Tax for the year amounted to -147 (-122) million SEK and the effective tax rate was 28 (25) percent. The total tax loss for which no deferred tax asset is recog- nised amounts to 149 (117) million SEK. As of the balance sheet date, the Group has remaining negative net interest that can be utilised against future positive net interest within a limited time period. Deferred tax assets are recognised only to the extent that it is con- sidered probable that the deductions can be utilised before the expiry date, in accordance with IAS 12. The assessment is based on the Group's forecasts of future earnings and net interest. No deferred tax asset is recognised for negative net interest where it is not currently considered probable that the deductions can be utilised. Total tax losses for which no deferred tax asset is recognised amount to SEK 149 (117) million, of which remaining negative net interest amounted to SEK 77 million. The Instalco Group is subject to the OECD's model rules for Pillar II and the legislation adopted in Sweden with effect from 1 January 2024. The Group has analysed and evaluated the effects of the introduction of Pillar II. Based on the outcome of the assessment, the effective tax rates in accordance with the Pillar II rules in each affected jurisdiction are above 15%, and man- agement has no reason to believe that there are any circumstances that would cause the effective tax rate in accordance with Pillar II to fall below 15% in any of the jurisdictions in which the Group has subsidiaries. The tax expense comprises the following components: The Group Parent Company 2025 2024 2025 2024 Current tax On profit (loss) for the year –211 –178 -1 0 Adjustment of prior years’ tax 1 0 – – Deferred tax expense/ income Change in temporary differences 63 27 – – Change in tax loss carryforwards 1 29 – – Reported tax in the income statement –147 –122 0 0 For the Group and the Parent Company, there is no deferred tax expense (income) in other comprehensive income. Reported deferred tax assets and liabilities Deferred tax assets and liabilities are attributable to the following: 31/12/2025 31/12/2024 Change during the year: Deferred tax asset Deferred tax liability Deferred tax asset Deferred tax liability Intangible assets – –66 – –92 Property, plant and equipment 0 –3 0 –4 Financial assets 0 – 0 – Inventories 0 – 1 – Current receivables 2 – 2 – Project provisions – –47 – –82 Warranty provisions 3 – 2 – Untaxed reserves – –169 – –180 Unutilised loss carryforwards 52 – 47 – Other 0 0 0 0 Total 57 –285 53 –358 Tax assets/ liabilities, net –227 –305 Reported in Change during the year: 01/01/ 2025 Income state- ment Equity Asso- ciated with acquisi- tions 31/12/ 2025 Intangible assets –92 26 – – –66 Property, plant and equipment –4 1 – – –3 Financial assets 0 0 – – 0 Inventories 1 –1 – – 0 Current receivables 2 0 – – 2 Project provisions –83 21 14 – –47 Warranty provisions 2 1 – – 3 Untaxed reserves –180 11 – –1 –169 Unutilised loss carry- forwards 47 5 – – 52 Total –305 63 14 –1 –227 Reported in Change during the year: 01/01/ 2024 Income state- ment Equity Asso- ciated with acquisi- tions 31/12/ 2024 Intangible assets –121 33 – –3 –92 Property, plant and equipment –5 1 – – –4 Financial assets 0 0 – – 0 Inventories 0 1 – – 0 Current receivables 2 0 – – 2 Project provisions –73 –16 7 – –83 Warranty provisions 2 0 – – 2 Untaxed reserves –187 7 – – –180 Unutilised loss carryforwards 18 29 – 2 47 Total –364 56 – –3 –304 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 118Notes
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Note 10. Goodwill and other intangible assets The Group 2025-12-31 Good- will Customer relations Other intangible assets Total Opening accumulated cost 5,301 949 20 6,270 Investments for the year – – 14 14 Acquisition of subsidiaries 21 – – 21 Sales/disposals – – – – Impairments –7 – – –7 Reclassifications – – – – Exchange differences –105 –23 –1 –129 Closing accumulated cost 5,210 926 33 6,169 Opening accumulated amortisation – –505 –13 –518 Amortisation for the year – –125 –4 –129 Impairments – – – – Exchange differences – 16 0 16 Closing accumulated amortisation – –614 –16 –631 Carrying amount 5,210 311 17 5,538 Group 2024-12-31 Good- will Customer relation- ships Other intangible assets Total Opening accumulated cost 5,310 934 17 6,261 Investments for the year 1 0 3 4 Acquisition of subsidiaries 26 15 – 41 Sales/disposals –24 – – –24 Impairments –29 – – –29 Reclassifications 9 – – 9 Exchange differences 8 0 0 8 Closing accumulated cost 5,301 949 20 6,270 Opening accumulated amortisation –23 –346 –10 –379 Amortisation for the year – –159 –3 –162 Impairments 22 – – 22 Exchange differences 1 0 0 1 Closing accumulated amortisation 0 –505 –13 –518 Carrying amount 5,301 444 7 5,752 Note 9. Earnings per share Earnings per share Both basic and diluted earnings per share have been calculated by using the profit attributable to the shareholders of the Parent Company as the numera- tor, i.e. no adjustments to the result needed to be made in 2025 or 2024. As at 31 December 2025, the Group had three outstanding warrant pro- grammes. The exercise price for the 2023, 2024 and 2025 programmes exceeded the average share price per share at the end of the year. These programmes are therefore considered to lack a dilutive effect and have been excluded from the calculation of diluted earnings per share. If the average share price in the future exceeds the exercise price, these warrants will give rise to dilution. The weighted average number of shares used to calculate diluted earnings per share can be reconciled with the weighted average number of ordinary shares used in the calculation of basic earnings per share as follows: Profit attributable to ordinary shareholders 2025 2024 Profit attributable to Parent Company’s owners as per the income statement 344 345 Profit attributable to ordinary shareholders, basic and after dilution 344 345 Number of shares, thousands 2025 2024 Weighted average number of shares used in the calculation of basic earnings per share 267,744 264,107 Weighted average number of shares used in the calculation of diluted earnings per share 267,744 264,107 Impairment testing of goodwill The Group's recognised goodwill amounts to SEK 5,210 (5,301) million. Within the framework of the new external reporting structure to be implemented and take full effect from 2026, Finland and Norway have also been tested sepa- rately. These impairment tests have been carried out using the same conditions and assumptions as the ordinary tests at segment level, and no impairment need has been identified. Goodwill is not monitored internally at a level below the geographic markets of Sweden, Norway and Finland, which is why the test is performed at that level. Instalco initiated its growth in the Sweden segment, which is also the dominant market. Growth in Norway and Finland has followed the same business model and drawn on experience from the Sweden segment. The impairment test is performed at a geographical level, as Instalco's companies are integrated to such an extent into the Group's business model, collaborative culture and values that it is not possible to separate assets and cash flows at a lower level. Within the geographies there is close collaboration, knowledge and experience are shared, and the companies are given the oppor- tunity to reach new customers and projects that an individual company would not have been able to win and execute on its own. In many cases, more than one company works on the same multidisciplinary project, with coordination taking place in tendering collaboration and through resource allocation. Goodwill is distributed as follows: SEK 3,513 (3,495) million in Sweden and SEK 1,697 (1,806) million in Rest of Nordics. During the period, impairments of SEK 7 million were carried out. Beyond this, no further impairment needs were identified during the period. The most recent test was performed in December 2025. The recoverable amount has been calculated based on value in use and takes as its starting point a current assessment of future cash flows based on the approved budget for 2026. Forecasted earnings and investments in working capital and fixed assets for the next financial year, 2026, are based on previous outcomes and experiences. The forecast is prepared on the basis of a relatively detailed budgeting process for the various parts of the Group. The main com- ponents of the cash flow are sales, various operating expenses and investments in working capital. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 119Notes
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Note 10, cont. Material assumptions made when calculating value in use are described below: • The sales forecast is based on assessments using factors such as the order book, business climate and market situation. The operating margins are based on historical operating margins. • The forecast for operating expenses is based on current salary agreements and previous years’ levels of gross margin and overheads, adapted to an expectation for the coming year based on aspects such as those mentioned for the sales forecast. • The annual growth volume for the first year has been assessed based on the companies’ forecasts and for subsequent years a constant growth of 2 (2) percent. These calculations are based on estimated future cash flows before tax based on financial forecasts approved by Group management and which cover a five-year period and have a significant effect on the valuation. • The discount rate before tax used to calculate the present value of estimated future cash flows is 10.2 (10.2) percent for segment Sweden and 10.2 (10.2) percent for the Rest of Nordics segment. The key assumptions that have the greatest effect on the recoverable amount are gross margin, discount rate and long-term growth rate, with the gross margin being of the greatest significance. No reasonably possible change in key assumptions would mean that the carrying amount for any CGU above would exceed the recoverable amount. Neither a 1 percentage point increase in the discount rate, a 1 percentage point reduction in long-term growth, nor a 1 percentage point reduction in the margin would lead to an impairment requirement. Thus, the margin to impairment requirement is acceptable for the geographical business areas and no reasonably possible changes in the above-mentioned input data are assessed to lead to an impairment require- ment. Other impairment testing When warranted, other intangible assets are tested for impairment according to the same principles as for goodwill. No events or changes in circumstances have been identified that indicate impairment of other intangible assets that are amortised. Note 11. Property, plant and equipment The Group 2025-12-31 Other non-current assets Right-of-use assets Total Opening accumulated cost 522 1,399 1,920 Investments for the year 83 349 432 Acquisition of subsidiaries –1 – –1 Sales/disposals –51 –208 –260 Reclassifications 0 0 0 Exchange differences –15 –24 –39 Closing accumulated cost 537 1,515 2,053 Opening accumulated depreciation –130 –701 –831 Depreciation for the year –76 –330 –406 Sales/disposals 33 182 215 Reclassifications 0 0 0 Exchange differences 9 11 20 Closing accumulated depreciation –163 –838 –1,001 Carrying amount 374 677 1,051 The carrying amount of other non-current assets consists of equipment and tools SEK 306 (309) million, vehicles at SEK 54 (67) million, and buildings at SEK 15 (16) million. Right-of-use assets refer to leased assets in accordance with IFRS 16, con- sisting of buildings (rental premises) of SEK 380 (402) million, vehicles of SEK 258 (262) million and other (tools/machinery) at SEK 38 (34) million. The year’s depreciation of right-of-use assets was SEK 159 (149) million for buildings, SEK 149 (135) million for vehicles and SEK 22 (38) million for other (tools and machinery). Total interest expense amounted to SEK 26 (27) million. The Group has excluded short-term leases and leases where the underlying asset is of low value; these total SEK 59 (56) million. For information on options to extend, see Note 1 Recognition and measurement principles, Leases. The Group 31/12/2024 Other non-current assets Right-of-use assets Total Opening accumulated cost 434 1,323 1,757 Investments for the year 121 291 412 Acquisition of subsidiaries 8 1 8 Sales/disposals –25 –217 –242 Reclassifications –19 – –19 Exchange differences 3 1 4 Closing accumulated cost 522 1,399 1,920 Opening accumulated depreciation –84 –560 –645 Depreciation for the year –74 –323 –397 Sales/disposals 19 181 200 Reclassifications 12 – 12 Exchange differences –2 0 –1 Closing accumulated depreciation –130 –701 –831 Carrying amount 392 698 1,089 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 120Notes
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Note 12. Financial assets and liabilities Categories of financial assets and liabilities he accounting principles include a description of each category of financial assets and liabilities, along with their associated accounting treatments. The carrying amounts for financial assets and liabilities are as follows: Financial assets The Group 2025-12-31 Fair value through profit or loss Amortised cost Total Non-current security holdings 34 – 34 Non-current receivables – 6 6 Accounts receivable – 1,839 1,839 Current receivables (portion of) – 278 278 Cash and cash equivalents – 348 348 Total 34 2,471 2,505 Financial liabilities The Group 2025-12-31 Fair value through profit or loss1) Amortised cost Total Non-current borrowing – 3,122 3,122 Current borrowing – 5 5 Accounts payable and other liabilities – 989 989 Contingent consideration 33 – 33 Lease liabilities – 658 658 Current liabilities (portion of) – 27 27 Total 33 4,802 4,834 1) Liabilities measured at fair value through profit or loss refer to contingent consideration. For more information, see Note 26. Financial assets Group 2024-12-31 Fair value through profit or loss Amortised cost Total Non-current security holdings 33 – 33 Non-current receivables – 7 7 Accounts receivable – 1,943 1,943 Current receivables (portion of) – 245 245 Cash and cash equivalents – 208 208 Total 33 2,402 2,435 Financial liabilities The Group 2024-12-31 Fair value through profit or loss1) Amortised cost Total Non-current borrowing – 2,977 2,977 Current borrowing – 6 6 Accounts payable and other liabilities – 905 905 Contingent consideration 180 – 180 Lease liabilities – 674 674 Current liabilities (portion of) – 12 12 Total 180 4,573 4,753 1) Liabilities measured at fair value through profit or loss refer to contingent consideration. For more information, see Note 26. Borrowing Borrowing includes the following financial liabilities: The Group Non-current borrowing 2025-12-31 2024-12-31 Liabilities to credit institutions 3,122 2,977 3,122 2,977 The Group Current borrowing 2025-12-31 2024-12-31 Liabilities to credit institutions 5 6 5 6 As at the balance sheet date, the Group’s credit facility amounted to SEK 3,850 (3,850) million, consisting of a bank overdraft of SEK 450 (450) million and other agreed credit facilities of SEK 3,400 (3,400) million. During the year, the bank overdraft changed by SEK 0 (-100) million and other agreed credit facilities increased by SEK 0 (0) million. As at the balance sheet date, the Group had utilised SEK 0 (0) million of the bank overdraft and SEK 3,100 (2,950) million of other credit facilities. Unutilised bank overdrafts and other credit facilities amounted to SEK 750 (900) million. The Group entered into a new credit agreement of SEK 3,400 million in June 2025. The credit facility is long-term with a maturity of two years and with the option to extend by up to an additional two years. The credit facility has an underlying base rate with a margin ratchet based on net debt. As loan covenants, Instalco has two key ratios, the net debt/EBITDA ratio and interest coverage, both of which are met with a comfortable margin. The credit facility includes an option to, once the terms have been determined, be linked to Instalco's sustainability programme, thereby enabling an interest rate improve- ment. Fair value Financial instruments measured at fair value are classified in a fair value hierar- chy. The different levels are defined as follows: • Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1). • Inputs for the asset or liability other than quoted prices included in Level 1, either directly (i.e. as price quotations) or indirectly (i.e. derived from price quotations) (Level 2). • Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs) (Level 3). Financial instruments measured at fair value in the balance sheet and classified at Level 2 in the fair value hierarchy include other non-current security hold- ings. Contingent considerations measured at fair value in the balance sheet are classified at Level 3 in the fair value hierarchy. For information on measure- ment techniques and changes in fair value » Note 26 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 121Notes
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Note 12, cont. Fair value for long-term borrowing as below: Group Long-term borrowing 2025-12-31 2024-12-31 Fair value 3,209 3,085 3,209 3,085 Fair value is based on discounted cash flows using a discount rate based on the lending rate and is at Level 3 in the fair value hierarchy. The fair value of short-term borrowing and other financial instruments is essentially the same as the carrying amounts. Reconciliation of liabilities to credit institutions arising from financing activities The Group Non-current liabilities Current liabilities Total 2025-01-01 2,977 6 2,983 Affecting cash flow New loans 4,150 –1 4,149 Repayment of loans –3,969 – –3,969 Not affecting cash flow: Acquisitions –1 – –1 Exchange differences –35 – –35 2025-12-31 3,122 5 3,127 Reconciliation of lease liabilities arising from financing activities Group Non-current liabilities Current liabilities Total 2025-01-01 411 264 676 Changes during the year Cash flow – –333 –333 New contracts – 352 352 Acquired contracts – 0 0 Other changes –8 –15 –22 Exchange differences –10 –5 –15 Reclassification between short- and long-term liabilities –13 13 – 2025-12-31 381 277 658 Reconciliation of liabilities to credit institutions arising from financing activities Group Non-current liabilities Current liabilities Total 2024-01-01 2,972 4 2,976 Affecting cash flow Borrowings 600 2 602 Repayment of loans –618 – –618 Not affecting cash flow: Acquisitions 2 – 2 Exchange differences 21 – 21 31/12/2024 2,977 6 2,983 Reconciliation of lease liabilities arising from financing activities The Group Non-current liabilities Current liabilities Total 2024-01-01 510 233 744 Changes during the year Cash flow – –318 –318 New contracts – 278 278 Acquired contracts – –1 –1 Other changes –14 –16 –30 Exchange rate differences 2 0 2 Transfer between current and non-current liabilities –86 86 – 2024-12-31 411 263 674 Note 13. Shares in Group companies Instalco AB owns 211 (203) legal entities, either directly or indirectly. Included in the Group is the direct holding in the subsidiary Instalco Holding AB with a carrying amount of 1,514 (1,375) million kronor. Parent Company Name/registered office Segment Number of shares Holding, % 2025 Holding, % 2024 Instalco Holding AB, Stockholm Other 437,730 100 100 All of the subsidiaries run operations in the installation industry. Parent Company Change during the year: 2025-12-31 2024-12-31 Opening accumulated cost 1,375 1,375 Shareholder contributions made 139 – Closing accumulated cost 1,514 1,375 Carrying amount 1,514 1,375 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 122Notes
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Note 14. Shares in associated companies Associated companies are companies where the Group exerts a significant influence without the partially owned company being a Group company or a joint arrangement. Accounting for associated companies is carried out accord- ing to the equity method and they are initially valued at cost. Valuation of acquired assets and liabilities is performed in the same way as for Group com- panies and the carrying amount of associated companies includes any goodwill and other Group adjustments. On 17 March, Instalco acquired a minority stake of 24 percent of the votes and capital in Fabri AG, known as step one. The acquisition was partly financed with treasury shares. A directed new share issue of 138 million kronor (4,647,727 shares) was carried out in March for this purpose. Instalco has an option-based plan in several steps. In step two, an addi- tional 27 percent of the shares can be acquired, and in step three, a further 17 percent. The implementation of these steps is conditional upon agreed threshold values for the Fabri Group’s results. The acquisitions of the shares are carried out at fair value. At step two, a majority ownership will be achieved, which based on the current assessment is expected to occur in the second half of 2026. The Instalco Group’s share of associated companies’ profit after tax arising in the associated company is reported under Other operating income. The share of profit is calculated based on Instalco’s capital share in the associated com- pany and amounts to 10.7 million kronor during the period from the entry. Name Org. No. Registered office 31 Dec 2025 Percentage holding 31 Dec 2025 Carrying amount Fabri AG HRB 40312 Nuremberg, Germany 24 243 Total – 243 Note 15. Accounts receivable Age analysis of trade receivables and expected credit losses on doubtful trade receivables. The Group 2025-12-31 2024-12-31 Accounts receivable, gross 1,898 2,015 Provision for doubtful debts –59 –72 Accounts receivable 1,839 1,943 The Group 2025-12-31 2024-12-31 Accounts receivable, not yet due for payment 1,583 1,538 Accounts receivable, 0–3 months past due 220 334 Accounts receivable, more than 3 months past due 95 143 Expected credit losses –59 –72 Total 1,839 1,943 Changes in the provision for doubtful debts for the Group are as follows: The Group 2025-12-31 2024-12-31 At 1 January 72 24 Acquired doubtful debts 0 0 Provision for doubtful debts 3 58 Receivables written off during the year as bad debts –15 –8 Reversal of unutilised amount 0 –2 At 31 December 59 72 Carrying amounts per currency for the Group’s accounts receivable are as follows: Group 2025-12-31 2024-12-31 SEK 1,262 1,350 NOK 373 435 EUR 204 158 Total 1,839 1,943 For further information, refer to » Note 27. Note 16. Contract assets and contract liabilities Group 2025-12-31 2024-12-31 Contract assets – Receivables from clients 551 648 Contract liabilities – Liabilities to clients –521 –528 Net 30 120 Contract assets primarily relate to the Group’s right to compensation for work performed but not invoiced at the balance sheet date for service and installa- tion contracts. Contract assets are transferred to accounts receivable when the right to invoice exists. Contract liabilities primarily refer to advances that have been received from customers for future services and installation work, for which revenue is rec- ognised over time. All contract liabilities recognised as a contract liability at the start of the period have been recognised as revenue in 2025. Performance commitments not met at year-end amounted to 9,510 (9,002) million kronor, of which 71 (69) percent of the revenue is expected to be recognised within 1 year, 24 (30) percent in the following year and 5 (2) percent thereafter. Note 17. Cash and cash equivalents and short-term investments Group Cash and cash equivalents consist of: 2025-12-31 2024-12-31 Cash at banks and on hand: – SEK –300 –361 – EUR 247 179 – NOK 398 386 – Other 3 3 Short-term investments – – Total 348 208 Cash and cash equivalents Cash and cash equivalents consist of cash and available balances at banks and equivalent institutions, together with other short-term liquid investments maturing within 90 days of the acquisition which can easily be converted into known amounts of cash and which are exposed to only a minor risk of value change. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 123Notes
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Note 18. Equity – Share capital At year-end, the number of shares amounted to 268,754,752 (264,107,025) shares with a nominal value of SEK 0.003 per share. All shares are of the same class with equal voting rights and share of the company’s capital and profit. A directed share issue of SEK 138 million (SEK 29.70 per share) was carried out during the year. The share issue resulted in an increase of 4,647,727 ordinary shares. At year-end, the company’s holding of repurchased treasury shares amounted to 310,545 (310,545). Net, after deduction of repurchased treasury shares, the number of shares amounts to 268,444,207 (263,796,480). Buyback of treasury shares is reported as a deduction from equity. Any transaction costs are reported directly in equity. Subscribed and paid-up shares (thousands of shares): 2025-12-31 2024-12-31 At the beginning of the year 264,107 264,107 New share issue in connection with acquisitions and conversions of warrants 4,648 – Total at year-end 268,755 264,107 Note 19. Provisions All provisions are reported as current in the Group and in the Parent Company under the heading “Provisions”. The carrying amounts and changes in these are as follows: Group Change during the year: 2025-12-31 2024-12-31 Opening carrying amounts 28 25 Additional provisions 5 3 Closing carrying amounts 33 28 Parent Company Carrying amount 31 December 2024 0 Carrying amount 31 December 2025 0 Provisions reported as at the acquisition date in a business combination are included in “Additional provisions” above. Provisions relate to various legal and other claims from customers, such as guarantees under which customers are compensated for repair costs. Typically, these claims are settled within 3 to 18 months of when they are made, depending on the claims settlement process for each type of claim. As the settlement dates of these claims largely depend on how quickly negotia- tions with the various counterparties and legal authorities progress, the Group is not able to reliably assess the amounts that will eventually be paid out more than 12 months from the closing date. For this reason, the amount is classified as current in the Group’s financial reports. Note 20. Liabilities to credit institutions/lease liabilities Of the liability items listed below, the amounts owed to credit institutions and most of the lease liabilities fall due for payment within five years. SEK 37 million of the lease liabilities fall due for payment after more than five years; for more detailed information on the maturity table, see » Note 27. The Group Parent Company 2025-12-31 2024-12-31 2025-12-31 2024-12-31 Non-current Liabilities to credit institu- tions 3,122 2,977 144 145 Lease liabilities 382 411 – – Total 3,504 3,388 144 145 Current Liabilities to credit institu- tions 5 6 – – Lease liabilities 276 263 – – Total 281 269 – – Note 21. Accounts payable The carrying amount for accounts payable is broken down by currency as follows: The Group Parent Company 31/12/2025 31/12/2024 31/12/2025 31/12/2024 SEK 753 670 2 0 NOK 140 146 – – EUR 96 89 – – Total 989 905 2 0 Note 22. Accrued expenses and deferred income The Group Parent Company 31/12/2025 31/12/2024 31/12/2025 31/12/2024 Employee- related costs 746 724 11 5 Interest 27 12 1 1 Other items 94 75 1 1 Carrying amount 867 811 13 7 Note 23. Pledged assets and contingent liabilities The Group Pledged assets 31/12/2025 31/12/2024 For own provisions and liabilities: Chattel mortgages 6 46 Pledged accounts receivable 11 5 Other pledged assets 45 64 Pledged assets for Group companies: Other pledged assets 1 2 Other pledged assets: Chattel mortgages 39 51 102 168 Contingent liabilities Performance guarantees 1,116 1,000 1,116 1,000 Instalco AB has provided a guarantee for Instalco Nordic's acquisition loan of SEK 2,950 (2,800) million. Otherwise, the parent company has no pledged assets or contingent liabilities. Performance guarantees include parent company guar- antees of SEK 1,074 (966) million relating to guarantees for subsidiaries' con- tracts. Performance guarantees also include guarantees of SEK 31 (10) million relating to guarantees issued to subsidiaries, as well as guarantees pertaining to lease objects at subsidiaries of SEK 11 (10) million. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 124Notes
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Note 24. Transactions with related parties The Instalco Group’s related parties are primarily its senior executives. For information on remuneration of senior executives, see » Note 5. There have been no transactions with related parties that have had a material impact on the Group’s financial position or earnings. The consultancy agreement entered into with the CEO does not amount to material sums and is on market terms. For fees relating to 2025, see » Note 5. Investments with, and borrowing from, Group companies have been on market terms. The Parent Company Instalco AB (publ) is a related party of other companies in the Group, including by being the main account holder of the Group’s cash pool. For material transactions that have impacted the Parent Company, see » Note 6. Note 25. Adjustments not impacting cash flow and changes in working capital The following adjustments not impacting cash flow and adjustments for changes in working capital have been made to earnings before tax in order to arrive at the cash flow from operating activities: Depreciation/amortisation and impairment of non-finan- cial items The Group The Parent Company 2025 2024 2025 2024 Depreciation/amortisation 534 560 – – Goodwill impairment 7 29 – – Change in accrued interest 15 –1 0 0 Provisions –6 5 – – Impairment of accounts receivable 95 69 – – Unrealised exchange rate effects –33 27 – – Capital gain (loss) from financial items 13 7 – – Capital gain (loss) from non-financial items –8 –30 – – Other adjustments –13 –12 0 0 Total 605 654 0 0 Note 26. Business acquisitions In 2025, Instalco completed the following acquisitions: Entity acquired / (divested) Area of technology Segment Date of acquisition Share of equity, % Assessed annual sales, SEK m Number of employees Alf Näslund Eltjänst AB Electrical Sweden March 100% 55 30 Total 55 30 Instalco made the following acquisitions / (divestments) in 2024: Entity acquired (divested) Area of technology Segment Date of acquisition Share of equity, % Assessed annual sales, SEK m Number of employees Lund Elektro AS Electrical Rest of Nordics March 100% 15 9 IT-Line Service Oy Industrial Rest of Nordics August 100% 40 33 Add-on acquisitions Solyx AB Electrical Sweden February 70% 14 5 Total 69 47 As a result of the acquisitions, the Group is expected to increase its presence in these national and international markets. The purchase price allocations with the value of assets and liabilities for the companies acquired up to and including December 2024 have now been fixed. No material adjustments have been made to the allocations. The purchase price allocation for the acquisition carried out in 2025 remains preliminary. Instalco considers the allocations to be preliminary until final fixed data from the acquired companies has been received. No individual acquisition is material to the Group, which is why the disclosures have been aggregated below. 2025 2024 Fair value of consideration at the date of acquisition Contingent consideration 1 10 Cash and cash equivalents 33 65 Total consideration 33 75 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 125Notes
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Note 26, cont. 2025 2024 Carrying amount of identifiable net assets Intangible assets – 15 Property, plant and equipment 0 2 Deferred tax assets – – Other current assets 10 13 Cash and cash equivalents 13 24 Deferred tax liabilities –0 –0 Other liabilities –10 –5 Total identifiable net assets 14 49 Goodwill from acquisitions 20 26 Transfer of consideration in cash and cash equivalents 33 65 Cash and cash equivalents in acquired entities –13 –24 Net cash flow from acquisitions 19 41 Settled contingent considerations attributable to acquisitions in the current and previous years 131 154 Exchange difference 4 2 Total impact on cash and cash equivalents 155 197 Acquisition-related costs of SEK 0 (2) million are included in "Other operating expenses" in the consolidated income statement. In accordance with agreements on contingent consideration, the Group must make a cash payment of additional consideration based on future earnings. The maximum non-discounted amount that could be paid to prior owners is SEK 243 million, of which SEK 10 million relates to acquisitions made in 2025. The fair value of the contingent consideration is at Level 3 in the fair value hierarchy. Contingent considerations are included in "Other liabilities" and "Other non-current liabilities" in the balance sheet and amounted to SEK 33 (180) million at 31 December 2025. Below is a table showing changes in carrying amounts of contingent consider- ation: 2025 2024 As at 1 January 180 349 Gains and losses recognised in the income statement –15 –35 Paid contingent considerations –131 –151 Added through acquisitions made during the year 2 15 Exchange differences –3 2 As at 31 December 33 180 The intangible assets of 20 (41) million kronor acquired in 2025 are attributa- ble to goodwill of 20 (26) million kronor and to customer relations and order backlog of 0 (15) million kronor. The Group’s goodwill at the date of acquisition is the amount by which the consideration exceeds the fair value of expected net assets. Goodwill is based on the companies’ future earnings capacity, the know-how and expertise of their employees and synergy effects that are expected to be achieved through further coordination of purchasing and central expenses. Consolidated good- will is tested for impairment annually at the level of each cash-generating unit. Impairments worth SEK 7 million were made during the year. No other impair- ment losses were identified during the year. The amounts allocated to intangi- ble assets such as customer relations were measured at the discounted value of future cash flows. The amortisation period is based on an assessment of the useful life of each asset; see further » Note 1 and Note 10. Net sales from acquisitions made in 2025 that are included in the consol- idated income statement as of the date of each acquisition amounted to 67 million kronor. The acquired entities contributed to an operating profit of 11 million kronor for 2025. Pro forma from 1 January 2025 corresponds to net sales of 82 million kronor from the acquisitions and an operating profit of 12 million kronor. Note 27. Risk associated with financial instruments Goals and policy for financial risk management Instalco strives for structured and effective management of the financial risks that arise in the operations, which is expressed in the financial policy estab- lished by the Board. The objective is to maintain a sound financial position, which contributes to maintaining owner, lender and market confidence and forms a basis for continued development of the business operations. The finan- cial policy defines and identifies the financial risks occurring within Instalco, as well as how the responsibility for managing these risks is allocated within the organisation. The defined financial risks are transaction exposure, translation exposure, refinancing risk, interest rate risk, liquidity risk and issuer/borrower risk. Operating risks, i.e. financial risks that depend on ongoing operations, are managed by the management of each subsidiary according to principles in the financial policy and subordinate routines, approved by the Group’s Board and management. Risks such as translation exposure, refinancing risk and interest rate risk are managed by the Parent Company with the goal of securing the Group’s short- to medium-term cash flows by minimising exposure to the volatile financial markets. Long-term financial investments are managed to generate lasting returns. The most significant financial risks to which the Group is exposed are described below; all amounts are undiscounted. Market risk Market risk is the Group’s risk that the fair value of financial instruments or future cash flows from financial instruments will fluctuate because of changes in market prices. The Group’s main market risks are interest rate risk and currency risk. Currency risk Currency risk is defined as the risk that the Group’s income statement and cash flow will be adversely affected by changes in exchange rates. Transaction risk arises when future business transactions are in a currency other than the company’s functional currency. The companies belonging to the Group do not have material transactions in currencies other than their functional currency, which is why the Group’s transaction risk is immaterial. Translation exposure arises when assets and liabilities are denominated in different currencies and when foreign subsidiaries’ results and net assets are translated into Swedish kronor. Currency derivatives are rarely used in the Group and hedge accounting is therefore not applied. For the Group, translation risks arise for all subsidiar- ies and associates. Assets and liabilities denominated in foreign currencies are translated using the closing rate at year-end. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 126Notes
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Note 27, cont. The table below shows a sensitivity analysis of translation differences in other comprehensive income, included in the item "Translation reserve" in equity, based on assumptions concerning strengthening or weakening of the Swedish krona against EUR and NOK. The Group 2025 2024 EUR/SEK +/– 10% 35 37 NOK/SEK +/– 10% 48 57 Interest rate risk Interest rate risk is the risk that changes in interest rates will have a negative impact on the Group’s future earnings and cash flow. In the Group, it is mainly cash and cash equivalents and interest-bearing borrowings that expose the Group to interest rate risk. The Group’s credit facility has an underlying base rate with a margin step-up based on net debt. The table below shows the effect on the Group’s profit after tax resulting from a reasonably possible change in the interest rate for its loans in Swedish kronor, holding all other variables con- stant. All effects on earnings refer to the effect of higher or lower interest costs. There is no additional impact on equity. The Group 2025 2024 100 basis points higher/lower 31 30 For more information on the Group’s borrowing, see » Note 12. Credit and counterparty risk Credit risk is the risk that a counterparty will not meet its obligations to the Group. Credit risk in financial management arises in the placement of cash and cash equivalents; this risk is limited by using counterparties approved in accord- ance with the guidelines set out in the Financial Policy. Large Nordic commercial banks have mainly been used. The Group is also exposed to credit risk in its commercial operations, in connection with accounts receivable and advance payments to suppliers. The Group’s maximum exposure to credit risk is limited to the carrying amount of financial assets on the closing date, as summarised below: Types of financial assets – carrying amounts The Group 2025 2024 Cash and cash equivalents 348 208 Accounts receivable 1,839 1,943 Total 2,186 2,150 Instalco applies the simplified approach in IFRS 9 when reporting the expected credit losses over the remaining term for all accounts receivable since these items do not have any significant financing component. When assessing the expected credit losses, accounts receivable have been assessed collectively because they have the same credit risk characteristics. They have been grouped based on the number of days past due. The risk that the Group’s customers will not fulfil their obligations, i.e. that payment will not be received from the customers, is a customer credit risk. Credit losses are normally small thanks to a very large number of projects and customers where invoicing takes place continuously during the production period. No customer accounts for more than 6 percent of sales. The Group’s customers have had their credit checked, whereby information on the cus- tomers’ financial position is obtained from various credit agencies. The Group operates in Sweden, Norway and Finland, which means that the customer credit risk is spread over several geographical areas. For sales by geographic area, see » Note 3. The Group writes off a receivable when no further cash flows are assessed to exist. At the end of the period, the Group had certain accounts receivable that had not been settled by the agreed upon due date. The amounts are specified by time past due: Maturity structure of accounts receivable The Group 31/12/2025 Not yet due More than 0 days More than 90 days Expected credit loss (%) 0 1 4 Carrying amount, gross 1,583 220 95 1,898 Expected credit loss for remaining term 5 1 4 10 The Group 31/12/2024 Not yet due More than 0 days More than 90 days Expected credit loss (%) 0 1 4 Carrying amount, gross 1,538 334 143 2,015 Expected credit loss for remaining term 5 2 6 12 Contract assets refer to accrued but unbilled revenue and are considered to have the same characteristics as already billed revenue. The same weighted loss rate is thus used for contract assets as is used for accounts receivable. The credit risk on cash and cash equivalents is considered to be negligible, as the counterparties are reputable banks with high credit ratings assigned by international rating agencies. Capital, financing and liquidity risk The overall objective is to maintain a sound financial position, which helps to maintain the confidence of shareholders, lenders and the market, and to pro- vide a basis for the business continued development. The goal of Instalco’s financing and debt management is to secure financing for the business in both the short and long term, and to minimise borrowing costs. The capital requirement is to be secured through active and professional borrowing arrangements in the form of bank overdrafts and other credit facil- ities. Raising external financing is centralised. Adequate payment readiness is to be ensured through agreed credit commitments. Excess liquidity is primarily to be used to repay outstanding loans. The Parent Company is responsible for both the Group’s long-term financing and its liquidity. The Group has a shared cash pool and an internal bank for loans made and received. Liquidity risk is the risk that the Group will not be able to meet its obligations. The Group manages its liquidity needs by monitoring planned payments on its non-current financial liabilities, along with forecasted payments to be made and received as part of daily operations. Information that is used to analyse these cash flows is consistent with what is used in the analysis of agreed maturi- ties below. Liquidity needs are monitored for various periods of time, which includes daily, weekly and rolling forecasts. The net cash requirements are compared with available credit facilities in order to establish the safety margin or any shortfalls. This analysis shows that available credit facilities are expected to be adequate during this period. The Group’s goal is to have cash, cash equivalents and marketable securities that meet its liquidity requirements for a period of at least 30 days. This goal was fulfilled during the reporting periods. Financing of long-term liquidity needs is also met by having an adequate amount of granted credit facilities and the possibility of selling non-current financial assets. The Group considers expected cash flows from financial assets when assessing and managing liquidity risk, particularly cash reserves and accounts receivable. The Group’s existing cash reserves and accounts receivable exceed its current payment obligations by a wide margin. Most of the cash flow from accounts receivable and other receivables falls due for payment within one month, and all of it within six months. Accounts payable normally fall due for payment within one month, but longer payment periods may also occur. The Group signed a new credit agreement for SEK 3,400 million in June 2025. The credit facility is long-term with a maturity of two years and an option to extend for up to a further two years. The credit facility has an underlying base rate with a margin step-up based on net debt. As loan terms, so-called covenants, Instalco has two key ratios: the ratio of net debt/EBITDA and interest coverage, both of which have been met with a wide margin. The facility has the possibility to be linked to Instalco’s sustainability programme. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 127Notes
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Note 27, cont. At the end of the period, the Group’s financial liabilities other than derivatives had the following agreed maturities (including interest payments, where applicable), which can be summarised as follows: The Group Current Non-current Total contractual cash flows Carrying amount receivables/ payables31/12/2025 Within 6 months 6–12 months 1–5 years Later than 5 years Liabilities to credit institutions – – 3,209 – 3,209 3,122 Lease liabilities 162 143 360 37 701 658 Contingent consideration – 17 15 – 33 33 Accounts payable 989 – – – 989 989 Total 1,151 160 3,583 37 4,931 4,802 A comparison of the same for prior reporting periods for the Group’s financial liabilities other than derivatives is as follows: The Group Current Non-current Total contractual cash flows Carrying amount receivables/ payables31/12/2024 Within 6 months 6–12 months 1–5 years Later than 5 years Liabilities to credit institutions – – 3,085 – 3,085 2,977 Lease liabilities 170 141 352 51 715 674 Contingent consideration – 139 41 – 180 180 Accounts payable 905 – – – 905 905 Total 1,075 280 3,478 51 4,884 4,735 Refinancing risk Refinancing risk is the risk that Instalco, at any given time, does not have access to sufficient financing. Refinancing risk increases if Instalco’s creditworthiness worsens or if the Group becomes overly reliant on any single source of financ- ing. If all or a substantial part of the debt portfolio falls due at the same time, or a few specific times, it could result in a large proportion of the debt volume having to be replaced or refinanced with terms and interest rates that are unfa- vourable. To limit refinancing risk, procurement of long-term credit commit- ments is initiated in good time ahead of the expiry of current commitments. Note 28. Proposed appropriation of the Parent Com - pany’s profit or loss The following retained earnings are at the disposal of the AGM (SEK 000s): 2025-12-31 Share premium reserve 1,389,517 Retained earnings –186,997 Profit (loss) for the year 174,865 1,377,385 The Board and CEO propose that as dividends be paid SEK 0.50 per share 134,222 to be carried forward 1,243,163 1,377,385 The dividend amount has been calculated based on the number of outstanding shares per 2025-12-31 of 268,754,752, after deducting shares held in treasury of 310,545. No dividend will be paid for repurchased shares. The total dividend amount may change up to and including the record date. Note 29. Subsequent events Nothing to report. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company » Notes Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 128Notes
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Approval of the financial statements The Group’s financial statements for the reporting period ending 31 December 2025 (including comparative figures) were approved by the Board of Directors on 13 March 2026. The Board of Directors and CEO’s assurance: The consolidated financial statements and annual report have been prepared with reference to the international accounting standards referred to in Regu- lation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards and generally accepted accounting principles, respectively, and provide a true and fair view of the Group’s and the Parent Company’s position and earnings. The Directors’ Report for the Group and the Parent Company provides a true and fair overview of the Group’s and the Parent Company’s operations, posi- tion and earnings, and describes material risks and uncertainties faced by the Parent Company and the companies included in the Group. The Group’s and the Parent Company’s results and position in general are disclosed in the preceding income statements and balance sheets, cash flow statements and notes. Stockholm, 13 March 2026 Johnny Alvarsson Camilla Öberg Carina Qvarngård Ulf Wretskog Chairman of the Board Board member Board member Board member Per Leopoldsson Carina Edblad Per Sjöstrand Board member Board member CEO and board member Our auditor’s report on the annual and consolidated accounts and our report on the sustainability report were submitted in March 2026 Grant Thornton Sweden AB Camilla Nilsson Authorised Public Accountant Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company Notes » Board signatures Auditor’s report Other information Instalco Annual and Sustainability Report 2025 129Board of Directors’ signatures
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Auditor’s report To the general meeting of the shareholders of Instalco AB (publ) Corporate identity number 559015–8944 Report on the annual accounts and consolidated accounts Opinions We have audited the annual accounts and consolidated accounts of Instalco AB (publ) for the year 2025 except for the corporate gov- ernance statement on pages 37–44 and the sustainability report on pages 52–99. The annual accounts and consolidated accounts of the company are included on pages 5, 13, 17, 19, 28–29, 37–51, 100–129 and 141–142 in this document. In our opinion, the annual accounts have been prepared in accord- ance with the Annual Accounts Act and present fairly, in all material respects, the financial position of parent company as of 31 December 2025 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2025 and their financial perfor- mance and cash flow for the year then ended in accordance with IFRS Accounting Standards, as adopted by the EU, and the Annual Accounts Act. Our opinions do not cover the corporate governance statement on pages 37 – 44 and the sustainability report on pages 52– 99. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. We therefore recommend that the general meeting of sharehold- ers adopts the income statement and balance sheet for the parent company and the group. Our opinions in this report on the annual accounts and consol- idated accounts are consistent with the content of the additional report that has been submitted to the parent company's audit com- mittee in accordance with the Audit Regulation (537/2014) Article 11. Basis for Opinions We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Swe- den. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional eth- ics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. This includes that, based on the best of our knowledge and belief, no prohibited services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided to the audited company or, where appli- cable, its parent company or its controlled companies within the EU. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Key audit matters Key audit matters of the audit are those matters that, in our pro- fessional judgment, were of most significance in our audit of the annual accounts and consolidated accounts of the current period, and include, among other things, the most important assessed risks of material misstatement. These matters were addressed in the context of our audit of, and in forming our opinion thereon, the annual accounts and consolidated accounts as a whole, but we do not provide a separate opinion on these matters. Revenues from installation contracts The Group recognise revenues from installation contracts over time, which means that revenues and costs are reported as the assign- ments are fulfilled. Revenues are recognised in relation to the per- centage of completion based on actual costs at year end in relation to the total projected cost for completing the project. Anticipated customer losses are recognized as soon as they are known. Revenue recognition is based on assessments of actual cost, esti- mated costs to complete the work and follow-up against the forecast of final outcome. A good control environment with ongoing forecast follow-ups of the project's final outcome is thus of great importance to the Group. Changes in assessments during the implementation of the assignment may give rise to a significant impact on the Group's earn- ings and financial position. The project forecasts are regularly evaluated by the Group during the term of each project and adjusted if necessary. For further information and description of the area, please see Note 2, Note 15 and accounting and valuation principles in Note 1 in the annual accounts and consolidated accounts.. Response in the audit As part of our audit related to revenue recognition of installation con- tracts, we have performed a number of audit procedures. Our audit procedures included, but were not limited to, the following: • Audit of the accounting principles and evaluation of the manage- ment’s processes for review assignments, including routines for identifying loss projects, and the process for assessing revenues and costs, including assessment of alternations and additional work. • Review and assessment of the Group's forecasting ability by evalu- ating the actual outcome against calculation and budget. We have assessed whether revenue recognition of installation assignments from the projects is reflected and provides a true and fair view of the accounts. • Audit of information provided in the annual report and that these are in all material respects in accordance with the requirements of the Annual Accounts Act and IFRS. Valuation of goodwill (Group) The Group's carrying amount for intangible fixed assets in the form of goodwill as of 31 December 2025 amounts to SEK 5,210 million, which corresponds approximately 51 percent of total assets. Intangi- ble assets with an indefinite useful life shall be subject to impairment testing annually. Testing for impairment involves calculations that are based on assumptions and assessments of such things as discount rates, growth factors, operating margins and forecasted cash flows. A test of impairment is complex and contains significant elements of assessments and assumptions about future operating profit and an appropriate discount rate. N.B. The English text is a translation of the official version in Swedish. In the event of any con-flict between the Swedish and English version, the Swedish shall prevail. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company Notes Board signatures » Auditor’s report Other information Instalco Annual and Sustainability Report 2025 130Auditor’s report
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Response in the audit As part of our audit related to valuation of goodwill in the Group we have performed a number of audit procedures. Our audit procedures included, but were not limited to, the following: • Assessment of the reasonableness of future cash flows and assumed discount rate by taking note of and evaluating Group management's assumptions and forecasts as well as previous years' assessments in relation to actual results. • Engagement of our own valuation specialists in terms of methodol- ogy and discount rates as well as macroeconomic aspects. • Assessment of the Group's sensitivity analysis based on reasonably possible changes in the Group's assumptions. • Audit of information provided in the annual report and that these are in all material respects in accordance with the requirements of the Annual Accounts Act and IFRS. Other Information than the annual accounts and consolidated accounts This document also contains other information than the annual accounts and consolidated accounts and is found on pages 1–4, 6–12, 14–16, 18, 20–27, 30–36, 135–140 and 143–144, and the sustainability report on pages 52–99. The renumeration report for the financial year 2025, which will be submitted after the date of this auditor’s report, also constitutes of other information. The Board of Directors and the Managing Director are responsible for this other information. Our opinion on the annual accounts and consolidated accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information. In connection with our audit of the annual accounts and con- solidated accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts. In this procedure we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other informa- tion, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act and, concerning the consolidated accounts, in accord- ance with IFRS Accounting Standards as adopted by the EU. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error. In preparing the annual accounts and consolidated accounts, The Board of Directors and the Managing Director are responsible for the assessment of the company’s and the group’s ability to continue as a going concern. They disclose as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intend to liquidate the company, to cease operations, or has no realistic alternative but to do so. The Audit Committee shall, without prejudice to the Board of Director’s responsibilities and tasks in general, among other things oversee the company’s financial reporting process. Auditor’s responsibility Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit con- ducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are consid- ered material if, individually or in the aggregate, they could reasona- bly be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts. As part of an audit in accordance with ISAs, we exercise profes- sional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, inten- tional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of the company’s internal control relevant to our audit in order to design audit procedures that are appropri- ate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the Managing Director. • Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company’s and the group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw atten- tion in our auditor’s report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts and consolidated accounts. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause a company and a group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the annual accounts and consolidated accounts, including the disclo- sures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation. • Plan and perform the group audit to obtain sufficient and appro- priate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the consolidated accounts. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our opinions. We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company Notes Board signatures » Auditor’s report Other information Instalco Annual and Sustainability Report 2025 131Auditor’s report
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significant audit findings during our audit, including any significant deficiencies in internal control that we identified. We must also provide the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our inde- pendence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the annual accounts and consolidated accounts, including the most important assessed risks for material misstatement, and are therefore the key audit matters. We describe these matters in the auditor’s report unless law or regulation precludes disclosure about the matter. Report on other legal and regulatory requirements The auditor’s audit of the administration of the Board of Directors and the Managing Director and the proposed appropriations of the company's profit or loss Opinions In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Managing Director of Instalco AB (publ) for the year 2025 and the proposed appropriations of the company’s profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the stat- utory administration report and that the members of the Board of Directors and the Managing Directors be discharged from liability for the financial year. Basis for Opinions We conducted the audit in accordance with generally accepted audit- ing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have oth- erwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Responsibilities of the Board of Directors and the Managing Director The Board of Directors is responsible for the proposal for appropri- ations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company's and the group’s type of operations, size and risks place on the size of the parent com- pany's and the group’s equity, consolidation requirements, liquidity and position in general. The Board of Directors is responsible for the company’s organi- zation and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s and the group’s financial situation and ensuring that the company's organiza- tion is designed so that the accounting, management of assets and the company’s financial affairs otherwise are controlled in a reassur- ing manner. The Managing Director shall manage the ongoing admin- istration according to the Board of Directors’ guidelines and instruc- tions and among other matters take measures that are necessary to fulfill the company’s accounting in accordance with law and handle the management of assets in a reassuring manner. Auditor’s responsibility Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company’s profit or loss are not in accordance with the Companies Act. As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgment and main- tain professional skepticism throughout the audit. The examination of the administration and the proposed appropriations of the com- pany’s profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on our professional judgment with starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the operations and where deviations and viola- tions would have particular importance for the company’s situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion on the Board of Directors’ proposed appropriations of the company’s profit or loss we examined the Board of Directors’ reasoned state- ment and a selection of supporting evidence in order to be able to assess whether the proposal is in accordance with the Companies Act. The auditor’s examination of the ESEF report Opinion In addition to our audit of the annual accounts and consolidated accounts, we have also examined that the Board of Directors and the Managing Director have prepared the annual accounts and consoli- dated accounts in a format that enables uniform electronic reporting (the Esef report) pursuant to Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528) for Instalco AB (publ) for the year 2025. Our examination and our opinion relate only to the statutory requirements. In our opinion, the Esef report has been prepared in a format that, in all material respects, enables uniform electronic reporting. Basis for opinion We have performed the examination in accordance with FAR’s recom- mendation RevR 18 Examination of the Esef report. Our responsibility under this recommendation is described in more detail in the Audi- tors’ responsibility section. We are independent of Instalco AB (publ) in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the Esef report in accordance with the Chapter 16, Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company Notes Board signatures » Auditor’s report Other information Instalco Annual and Sustainability Report 2025 132Auditor’s report
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Section 4 a of the Swedish Securities Market Act (2007:528), and for such internal control that the Board of Directors and the Managing Director determine is necessary to prepare the Esef report without material misstatements, whether due to fraud or error. Auditor’s responsibility Our responsibility is to obtain reasonable assurance whether the Esef report is in all material respects prepared in a format that meets the requirements of Chapter 16, Section 4 a of the Swedish Securities Market Act (2007:528), based on the procedures performed. RevR 18 requires us to plan and execute procedures to achieve reason- able assurance that the Esef report is prepared in a format that meets these requirements. Reasonable assurance is a high level of assurance, but it is not a guarantee that an engagement carried out according to RevR 18 and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Esef report. The firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, profes- sional standards and applicable legal and regulatory requirements. The examination involves obtaining evidence, through various procedures, that the Esef report has been prepared in a format that enables uniform electronic reporting of the annual accounts and consolidated accounts. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement in the report, whether due to fraud or error. In carrying out this risk assessment, and in order to design audit procedures that are appropriate in the circumstances, the auditor considers those elements of internal control that are relevant to the preparation of the Esef report by the Board of Directors and the Managing Director, but not for the purpose of expressing an opinion on the effectiveness of those internal controls. The examination also includes an evaluation of the appropriateness and reasonableness of assumptions made by the Board of Directors and the Managing Director. The procedures mainly include a validation that the Esef report has been prepared in a valid XHMTL format and a reconciliation of the Esef report with the audited annual accounts and consolidated accounts. Furthermore, the procedures also include an assessment of whether the consolidated statement of financial performance, financial posi- tion, changes in equity, cash flow and disclosures in the Esef report have been marked with iXBRL in accordance with what follows from the Esef regulation. The auditor’s examination of the corporate governance statement The Board of Directors is responsible for that the corporate govern- ance statement on pages 37–44 has been prepared in accordance with the Annual Accounts Act. Our examination of the corporate governance statement is conducted in accordance with FAR’s stand- ard RevR 16 The auditor’s examination of the corporate governance statement. This means that our examination of the corporate gov- ernance statement is different and substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinions. A corporate governance statement has been prepared. Disclosures in accordance with chapter 6 section 6 the second paragraph points 2–6 of the Annual Accounts Act and chapter 7 section 31 the second paragraph the same law are consistent with the other parts of the annual accounts and consolidated accounts and are in accordance with the Annual Accounts Act. Grant Thornton Sweden AB, Kungsgatan 57, 103 94 Stockholm, was appointed auditor of Instalco AB (publ) by the general meeting of the shareholders on the 6 May 2025 and has been the company’s auditor since the 7 September 2015. Stockholm, according to the date indicated by the electronic signature Grant Thornton Sweden AB Camilla Nilsson Authorised Public Accountant Auditor’s limited assurance report of Instalco AB (publ)’s statutory sustainabil- ity statement To the general meeting of the shareholders of Instalco AB (publ), corporate identity number 559015–8944 Conclusion We have conducted a limited assurance engagement of the sus- tainability statement for Instalco AB (publ) for the financial year 2025. The sustainability statement is included on pages 52–99 in this document. Based on our limited assurance engagement as described in the section Auditor's responsibility, nothing has come to our atten- tion that causes us to believe that the sustainability statement does not, in all material respects, meet the requirements of the Swedish Annual Accounts Act which includes, • whether the sustainability statement meets the requirements of the European Sustainability Reporting Standards (ESRS), • whether the process the company has carried out to identify reported sustainability information has been conducted as described in the sustainability statement, and • compliance with the reporting requirements of the EU's Green Taxonomy Regulation Article 8 (EU Taxonomy). Basis for conclusion We have conducted the limited assurance engagement in accord- ance with FAR's recommendation RevR 19 Revisorns översiktliga granskning av den lagstadgade hållbarhetsrapporten. Our respon- sibility according to this recommendation is further described in the section Auditor's responsibility. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Other information than the sustainability report This document also contains other information than the sustain- ability statement and is found on pages 1 – 51 and 100 – 144. The Board of Directors and the Chief Executive Officer are responsible for this other information. Our conclusion on the sustainability statement does not cover this other information and we do not express any form of assur- ance conclusion regarding this other information. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company Notes Board signatures » Auditor’s report Other information Instalco Annual and Sustainability Report 2025 133Auditor’s report
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In connection with our limited assurance engagement on the sustainability statement, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the sustainability statement. In this procedure we also take into account our knowledge otherwise obtained in the limited assurance engagement and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other informa- tion, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the Chief Executive Officer The Board of Directors and the Chief Executive Officer are responsi- ble for the preparation of sustainability statement in accordance with Chapter 6, paragraphs 12–12f of the Swedish Annual Accounts Act, and for such internal control as they determine is necessary to enable the preparation of the sustainability statement that is free from mate- rial misstatements, whether due to fraud or error. Other matters Prior year’s sustainability statement has not been subject to limited assurance procedures in accordance with FAR's recommendation RevR 19 and consequently prior year’s information in the sustaina- bility statement for 2025 has not been subject to limited assurance procedures in accordance with that recommendation. Auditor’s responsibility Our responsibility is to express a conclusion on whether the sustaina- bility statement has been prepared in accordance with Chapter 6, Sec- tions 12–12f of the Swedish Annual Accounts Act based on our review. The limited assurance engagement has been conducted in accordance with FAR's recommendation RevR 19 Revisorns översiktliga gransk- ning av den lagstadgade hållbarhetsrapporten. This recommendation requires that we plan and perform our procedures to obtain limited assurance that the sustainability statement is prepared in accord- ance with these requirements. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a rea- sonable assurance engagement been performed. This means that it is not possible for us to obtain such assurance that we become aware of all significant matters that could have been identified if a reasonable assurance engagement had been performed. Our firm applies ISQM 1 (International Standard on Quality Man- agement), which requires the firm to design, implement and operate a system of quality management, including policies and procedures regarding compliance with ethical requirements, professional stand- ards, and applicable legal and regulatory requirements. We are independent of Instalco AB (publ) in accordance with pro- fessional ethics for auditors in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. A limited assurance engagement involves performing procedures to obtain evidence to support the sustainability statement. The auditor selects the procedures to be performed, including assessing the risks of material misstatements in the sustainability statement, whether due to fraud or error. In this risk assessment, the auditor considers the parts of the internal control that are relevant to how the Board of Directors and the Chief Executive Officer prepare the sustainability statement, in order to design procedures that are appropriate under the circumstances, but not for the purpose of providing a conclusion on the effectiveness of the entity's internal control. The review consists of making inquiries, primarily of per- sons responsible for the preparation of the sustainability statement, performing analytical review, and conducting other limited review procedures. Our review procedures concerning the entity’s process for identi- fying sustainability information to be reported included, but were not limited to: • Obtain an understanding of the process by: • Performing inquiries to understand the sources of the information used by entity, and; • Reviewing the entity's internal documentation of the pro- cess. • Evaluate whether the evidence obtained from our procedures about the process implemented by the entity is consistent with the description of the process in the sustainability statement. The review procedures with respect to the sustainability statement included but were not limited to the following: • By inquiries obtain an understanding of the entity's control envi- ronment, reporting processes, and information systems relevant to the preparation of its sustainability statement; • Evaluate whether the information identified to be material by the entity’s process for identifying sustainability information to be reported, is included in the sustainability statement; • Evaluate whether the structure and the presentation of the sustain- ability statement is in accordance with the requirements in ESRS; • Perform inquiries of relevant personnel and analytical procedures on selected disclosures in the sustainability statement; • Performed inquiries and analytical procedures to evaluate whether the methods, data and significant assumptions used to make esti- mates in the sustainability statement are appropriate and applied consistently. The review of the taxonomy disclosures included, but was not limited to, the following: • Obtaining an understanding of the process for identifying eco- nomic activities that are covered by and aligned with the EU Taxon- omy and the corresponding disclosures in the sustainability report; • Evaluating processes, documentation, and assessments of eligibility and alignment of economic activities with the technical screening criteria under the EU Taxonomy; • Evaluating whether the reporting is consistent with the require- ments of the EU Taxonomy. Inherent limitations In reporting forward-looking information in accordance with ESRS, the Board of Directors and the Chief Executive Officer for Instalco AB (publ) are required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by Instalco AB (publ). The actual outcome is likely to be different since anticipated events frequently do not occur as expected. Signature on Swedish original Stockholm, as per the date stated in the electronic signing Grant Thornton Sweden AB Camilla Nilsson Authorised Public Accountant Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Group Parent Company Notes Board signatures » Auditor’s report Other information Instalco Annual and Sustainability Report 2025 134Auditor’s report
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Other information Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Other information Five-year overview Definitions The share Subsidiaries
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Five-year overview 2025 2024 2023 2022 2021 Consolidated income statement, SEK m Net sales 13,598 13,690 14,279 12,063 8,890 Growth in net sales, % –1 –4 18 36 25 EBITDA 1,209 1,278 1,416 1,165 920 EBITDA margin % 8.9 9.3 9.9 9.6 10.3 EBITA 800 879 1,085 916 748 EBITA margin % 5.9 6.4 7.6 7.6 8.4 Operating profit (loss) (EBIT) 668 690 899 784 722 Operating margin (EBIT), % 4.9 5.0 6.3 6.5 8.1 Earnings before taxes 523 486 792 697 699 Tax on profit (loss) for the year –147 –122 –177 –145 –142 Profit (loss) for the year 376 364 615 551 558 Profit (loss) for the period attributable to Parent Company shareholders 344 345 601 520 546 Equity, provisions and liabilities, SEK m Total equity 3,397 3,382 3,390 3,152 2,501 Return on equity before tax, % 15 14 23 22 28 Total assets 10,267 10,310 10,716 9,573 7,589 Net interest-bearing debt 3,444 3,457 3,461 2,503 1,650 Gearing ratio, % 106.7 107.8 107.9 85.1 66.5 Net interest-bearing debt in relation to EBITDA, multiple 2.8 2.7 2.4 2.1 1.8 Return on equity, % 11.7 11.3 19.6 19.2 24.6 Return on capital employed, % 9.6 10.1 14.1 14.9 18.8 Key financial performance indicators Equity ratio, % 33.1 32.8 31.6 32.9 33.0 Cash flow from operating activities 1,010 946 999 753 610 Working capital 220 314 322 341 –255 Cash conversion, % 108.1 89.3 89.5 85.0 83.6 Order backlog, SEK m Order backlog 9,510 9,002 8,437 8,376 6,795 2025 2024 2023 2022 2021 Acquisition-related items Remeasurement of additional contingent consideration 15 34 23 25 31 Acquisition costs –0 –2 –8 –12 –11 Total acquisition-related items 15 33 15 13 20 Key figures, employees Average number of employees 6,042 6,139 5,986 5,316 4,235 Number of employees at year-end 6,123 6,197 6,282 5,611 4,887 Per share data Share price at 31 December, SEK 25.88 32.96 40.90 39.63 86.88 Market capitalisation at 31 December, SEK m 6,955 8,705 10,802 10,326 22,599 Dividend, SEK 0.50 0.68 0.68 0.66 0.65 Profit (loss) (attributable to Parent Company shareholders), SEK 1.28 1.31 2.31 1.99 2.10 Equity, SEK 12.6 12.9 12.1 12.1 9.6 Cash flow from operating activities, SEK 3.8 3.6 1.6 2.7 2.3 Average number of shares, before dilution, thousands 268,755 264,107 262,539 260,564 260,113 Average number of shares, after dilution, thousands 268,755 264,107 265,726 265,510 265,060 Number of shareholders as at 31 December 10,685 12,540 14,130 14,879 14,606 Number of shares outstanding, thousands 268,755 264,107 264,107 260,253 260,253 12M high, SEK 36.70 53.45 61.45 88.84 98.64 12M low, SEK 21.88 28.68 26.90 38.28 50.60 Sustainability Employee satisfaction eNPS 311) eNPS 311) eNPS 301) 85% 84% Sickness absence % 4.4 4.8 4.7 5.4 5.0 Employee turnover % 15.8 15.3 13.1 14.8 13.9 Number of occupational injuries 127 222 187 210 142 LTIFR2) 10.27 – – – – Women in Group management, % 22.2 12.5 12.5 10.0 9.1 Women on Board of Directors, % 42.9 42.9 42.9 50.0 42.9 Overall percentage of women in the Group, % 7.2 7.1 7.3 6.4 5.9 Number of employees at year-end 6,123 6,197 6,282 5,611 4,887 Number of businesses at year-end 154 156 135 125 106 1) From 2023, employee satisfaction is measured according to the Employee Net Promoter Score (eNPS) standard, meaning data from previous years is not comparable. 2) From 2025, workplace injuries are also measured according to LTIFR; comparative data is not available. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Other information » Five-year overview Definitions The share Subsidiaries Instalco Annual and Sustainability Report 2025 136Five-year overview
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Reconciliation of performance measures not defined in accordance with IFRS The company presents certain financial measures in the annual report that are not defined according to IFRS. The company believes that these measures provide useful supplementary information to investors and the company’s management since they allow relevant trends to be evaluated. Instalco’s definitions of these measures may differ from other companies’ definitions of the same terms. These financial measures should therefore be viewed as supplementary metrics rather than as a replacement for measures defined according to IFRS. Presented below are definitions of measures that are not defined under IFRS and that are not mentioned elsewhere in the annual report. A reconciliation of these measures is provided in the table below. For definitions of key performance indicators, see pages 139–140. As of 1 January 2022, EBITA and EBITDA are no longer calculated with adjustment for remeasurement of contingent consideration and acquisition costs. Calculation of organic growth in net sales 2025 2024 2023 2022 2021 Net sales 13,598 13,690 14,279 12,063 8,890 Acquired net sales – 95 – 1,470 – 1,729 –2,328 –1,470 Changes in exchange rates –149 0 –15 –146 0 A) Figure for comparison with previous year 13,354 12,220 12,535 9,589 7,419 B) Net sales for the previous year 13,690 14,279 12,063 8,890 7,122 (A/B) Organic growth in net sales, % –0.3 –6.5 4.6 7.9 4.2 Earnings and margin metrics (A) EBITDA 1,209 1,278 1,416 1,165 920 Depreciation, amortisation and impairment of property, plant and equipment and non-acquired intangible assets 409 399 331 249 172 (B) EBITA 800 879 1,085 916 748 Amortisation and impairment of acquired intangible assets 132 189 186 131 26 (C) Operating profit (EBIT) 668 690 899 784 722 (D) Net sales 13,598 13,690 14,279 12,063 8,890 (A/D) EBITDA margin, % 8.9 9.3 9.9 9.6 10.3 (B/D) EBITA margin, % 5.9 6.4 7.6 7.6 8.4 (C/D) EBIT margin, % 4.9 5.0 6.3 6.4 8.1 KPIs for cash flow and returns Calculation of operating cash flow and cash conversion 2025 2024 2023 2022 2021 (A) EBITDA 1,209 1,278 1,416 1,165 920 Net investments in property, plant & equipment, financial assets and intangible assets –94 –100 –102 –27 –18 Changes in working capital 192 –37 –47 –137 –130 (B) Operating cash flow 1,307 1,142 1,267 1,000 772 (B/A) Cash conversion, % 108.1 89.3 89.5 85.9 83.9 Calculation of return on equity (A) Profit (loss) for the year 376 364 615 551 558 Equity at beginning of period 3,209 3,207 2,944 2,482 1,960 Equity at end of period 3,228 3,209 3,207 2,944 2,482 (B) Average total equity 3,219 3,208 3,131 2,713 2,221 (A/B) Return on total equity, % 11.7 11.3 19.6 20.3 25.1 Return on capital employed (A) EBIT 668 690 899 784 722 (B) Financial income 48 27 93 38 23 (C) Average total assets 10,202 10,432 10,777 8,914 6,390 (D) Interest-free liabilities 3,078 3,262 3,598 3,010 2,303 ((A+B)/(C-D)) Return on capital employed, % 9.6 10.0 13.8 13.9 18.2 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Other information » Five-year overview Definitions The share Subsidiaries Instalco Annual and Sustainability Report 2025 137Five-year overview
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Capital structure Calculation of working capital and working capital in relation to net sales 2025 2024 2023 2022 2021 Inventories 188 209 202 159 104 Accounts receivable 1,839 1,943 2,091 1,891 1,448 Contract assets 551 648 628 620 519 Prepaid expenses and accrued income 241 204 271 158 101 Other current assets 164 157 168 177 127 Accounts payable –989 –905 –1,052 –1,042 –788 Contract liabilities –521 –528 –549 –461 –403 Other current liabilities –386 –606 –642 –473 –784 Accrued expenses and deferred income including provisions –867 –808 –795 –687 –580 (A) Working capital 220 314 322 341 –255 (B) Net sales 13,598 13,690 14,279 12,063 8,890 (A/B) Working capital in relation to net sales, % 1.6 2.3 2.3 2.8 –2.9 Calculation of interest-bearing net debt, gearing ratio and interest-bearing net debt in relation to EBITDA Non-current interest-bearing financial liabilities 3,510 3,396 3,492 2,950 2,209 Current interest-bearing financial liabilities 281 269 236 185 137 Cash and cash equivalents –348 –208 –267 –631 –695 (A) Interest-bearing net debt 3,444 3,458 3,461 2,503 1,650 (B) Equity 3,228 3,209 3,207 2,944 2,482 (A/B) Gearing ratio, % 106.7 107.8 107.9 85.0 66.5 (C) EBITDA 1,209 1,278 1,416 1,165 920 (A/C) Interest-bearing net debt in relation to EBITDA, multiple 2.8 2.7 2.4 2.1 1.8 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Other information » Five-year overview Definitions The share Subsidiaries Instalco Annual and Sustainability Report 2025 138Five-year overview
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Definitions General All amounts in the tables are in SEK m unless otherwise indicated. All values in parentheses () are comparison figures for the same period last year, unless otherwise indicated. Key performance indicators Definition/calculation Purpose Return on equity Profit for the year on a rolling 12-month basis divided by average total equity at the end of the period. Return on equity is used to analyse profitability, based on how much equity is used. Return on capital employed Operating profit (EBIT) plus financial income divided by capital employed (total assets less interest-free liabilities). The components are calculated as the average over the last 12 months. The purpose is to analyse profitability in relation to capital employed. EBITA Operating profit (EBIT) before depreciation/amortisation and impairment of acquisition-related intangible assets. EBITA provides an overall picture of the profit generated from operating activities. EBITDA Operating profit (EBIT) before depreciation/amortisation and impairment of acquisition-related intangible assets and depreciation/amortisation and impairment of property, plant and equipment and intangible assets. Together with EBITA, EBITDA provides an overall picture of the profit generated from operating activities. EBITA margin Operating profit (EBIT) before depreciation/amortisation and impairment of acquisition-related intangible assets, as a percentage of net sales. EBITA margin is used to measure operational profitability. EBITDA margin Operating profit (EBIT) before depreciation/amortisation and impairment of acquisition-related intangible assets and depreciation/amortisation and impairment of property, plant and equipment and intangible assets, as a percentage of net sales. EBITDA margin is used to measure operational profitability. Changes in exchange rates The period’s change in net sales that is attributable to the change in exchange rates (start of the period compared to the end of the period), as a percentage of net sales during the comparison period. The change in exchange rates reflects the impact that exchange rate fluctuations have had on net sales during the period. Acquired net sales growth Change in net sales as a percentage of net sales during the comparable period, driven by acquisitions. Acquired net sales are defined as net sales during the period that are attributable to companies that were acquired dur- ing the last 12-month period and for these companies, only their sales up until 12 months after the acquisition date are considered as acquired net sales. Acquired net sales growth reflects the acquired entities’ impact on net sales. Cash conversion Operating cash flow for the rolling 12 months as a percentage of EBITDA for the rolling 12 months. The calculation of cash conversion was changed during the year and prior periods have been restated. Cash conversion is used to monitor how effective the Group is in managing ongoing investments and working capital. Net sales growth Change in net sales as a percentage of net sales in the comparable period, prior year. The change in net sales reflects the Group’s realised sales growth over time. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Other information Five-year overview » Definitions The share Subsidiaries Instalco Annual and Sustainability Report 2025 139Definitions
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Key performance indicators Definition/calculation Purpose Interest-bearing net debt in relation to EBITDA Interest-bearing net debt at end of period divided by EBITDA, on a rolling 12-month basis. Net debt in relation to EBITDA provides an estimate of the company’s ability to reduce its debt. It represents the number of years it would take to pay back the debt if the net debt and EBITDA are kept constant, without taking into account the cash flows relating to interest, taxes and investments. Net debt/equity ratio Net interest-bearing debt as a percentage of total equity. The net debt/equity ratio measures the extent to which the Group is financed by loans. Since cash and cash equivalents and other short-term investments can be used to pay off the debt at short notice, net debt is used instead of gross debt in the calculation. Operating cash flow EBITDA less net investments in property, plant and equipment and intangible assets, along with an adjustment for cash flow from change in working capital. Operating cash flow is used to monitor the cash flow generated from operating activities. Order backlog The value of outstanding, not yet accrued project revenue from received orders at the end of the period. Order backlog provides an indication of the Group’s remaining project revenue from orders already received. Organic growth, adjusted for currency effects The change in net sales for comparable units after adjustment for acquisition and currency effects, as a percentage of net sales during the comparison period. Organic growth in net sales does not include the effects of changes in the Group’s structure and exchange rates, which enables a comparison of net sales over time. Items affecting comparability Non-recurring items, such as restructuring costs and costs related to action plans. The exclusion of items affecting comparability increases the comparability of results between periods. Return on equity before tax Earnings before taxes divided by adjusted equity. Return on equity before tax is used to create an efficient organisation and rational capital structure. It also shows the return provided by the Group on shareholders’ capital. Net interest-bearing debt Non-current and current interest-bearing liabilities less cash and cash equivalents and other short-term investments. Net interest-bearing debt is used as a measure of the Group’s total debt. Working capital Inventories, accounts receivable, earned but not yet invoiced income, prepaid expenses and accrued income and other current assets, less accounts payable, invoiced but not yet earned income, accrued expenses and deferred income and other current liabilities. Working capital is used to measure the company’s ability to meet short-term capital requirements. Working capital as a percentage of net sales Working capital at the end of the period as a percentage of net sales on a rolling 12-month basis. Working capital as a percentage of net sales is used to measure the extent to which working capital is tied up. Operating profit (loss) (EBIT) Earnings before interest and taxes. Operating profit (EBIT) provides an overall picture of the profit generated from operating activities. Equity ratio Equity including non-controlling interests expressed as a percentage of total assets. The equity ratio is used to show the proportion of assets financed by equity. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Other information Five-year overview » Definitions The share Subsidiaries Instalco Annual and Sustainability Report 2025 140Definitions
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The share Instalco AB is listed on Nasdaq Stockholm Mid Cap under the ticker INSTAL. Share capital At the end of the year, the share capital amounted to SEK 0.8 (0.8) million, distributed across a total of 268,754,752 shares with a quota value of SEK 0.003 (0.003) per share. All shares are of the same class with equal voting rights and share of the company’s capital and profit. Buyback of treasury shares and new share issues Since 2019, the Board has requested and received a mandate from the AGM to acquire and buy back treasury shares, provided that the treasury holding does not exceed 5 percent of the total number of shares in the Parent Company. No treasury shares were acquired or bought back in 2025. At the end of the period, the holding of treasury shares totalled 310,545 (310,545). Since 2018, the Board has requested and received a mandate from the general meeting to decide on new share issues. The table shows the change in the number of shares for the period 2025-01-01 – 2025-12-31. Date Reason Change Number of shares 2025-01-01 264,107,025 2025-03-19 New share issue, acquisition 4,647,727 268,754,752 2025-12-31 268,754,752 Share price development and trading The closing price on 31 December 2025 was 25.88 (32.96) SEK, corre- sponding to a market capitalisation of approximately 6.9 (8.7) billion SEK. 141.5 (114.6) million shares were traded in total on the primary market in 2025, corresponding to a value of 3.8 (4.5) billion SEK. The average number of shares traded on the primary market per trad- ing day was 568,509 (456,725). Instalco’s share price fell by 7.08 SEK during the year, corresponding to a decrease of 21.4 (-19.4) percent. Nasdaq Stockholm’s broad index rose by 9.5 (+5.7) percent in 2025. Shareholders At the end of the year, Instalco had 10,685 (12,540) known sharehold- ers. The Company’s ten largest owners accounted for 52.99 (56.41) percent of the share capital and the votes. 40.30 (50.40) percent of the capital was held by owners based in Sweden. Instalco’s ten largest shareholders, 31/12/2025 Number of shares Share of capital, % Share of votes, % Per Sjöstrand 22,999,835 8.56 8.56 Capital Group 21,306,655 7.93 7.93 AMF Pension & Fonder 20,902,859 7.78 7.78 Första AP-fonden 13,345,356 4.97 4.97 Wipunen varainhallinta 13,300,000 4.95 4.95 Torpanmaa 13,300,000 4.95 4.95 Odin Fonder 10,755,515 4.00 4.00 Handelsbanken Fonder 9,534,683 3.55 3.55 Vanguard 8,890,153 3.31 3.31 Baillie Gifford & Co 8,635,638 3.21 3.21 The 10 largest shareholders 142,970,694 53.20 53.20 Others 125,784,058 46.80 46.80 Total 268,754,752 100.00 100.00 Source: Modular Finance AB Other Highest closing price during 2025: SEK 36.70 (53.45) Lowest closing price during 2025: SEK 21.88 (28.68) The proportion of shares owned by Swedish institutional owners at year-end amounted to 22.3 percent of the share capital and votes. Foreign institutional owners accounted for 44.7 percent of the share capital and votes. Financial calendar Interim report January – March 2026 29 April 2026 Annual General Meeting 2026 5 May 2026 Interim report January – June 2026 17 July 2026 Interim report January – September 2026 23 October 2026 Additional information Christina Kassberg, CFO, christina.kassberg@instalco.se Mathilda Eriksson, Head of IR, mathilda.eriksson@instalco.se Outstanding share-related incentive programmes Instalco has three outstanding warrant programmes corresponding to a total of 6,950,000 shares that are directed to the Extended man- agement team, CEOs of the subsidiaries and other key individuals in the Group. The warrants have been transferred on market terms at a price that was based on an estimated market value using the Black & Scholes calculation model as established by an independent valuation institute. The terms for the exercise price per share in the programmes correspond to 115 percent of the volume-weighted average price during the period of five trading days after the respec- tive Annual General Meeting. For further information about the programmes, see Note 5. Outstanding programme Number of options Percentage of total shares Price per option Exercise price per option Exercise period 2023/2026 2,350,000 0.9% SEK 2.09/7.27 SEK 64.90 22 May 2026 – 16 June 2026 2024/2027 2,350,000 0.9% SEK 7.74 SEK 44.32 24 May 2027 – 18 June 2027 2025/2028 2,250,000 0.8% SEK 2.55 SEK 31.40 22 May 2028 – 16 June 2028 Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Other information Five-year overview Definitions » The share Subsidiaries Instalco Annual and Sustainability Report 2025 141Directors’ report – The share
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Size category number of shares, 2025-12-31 Number of known shareholders Share of capital, % Share of votes, % 1–1,000 8,683 0.70 0.70 1,001–10,000 1,568 1.77 1.77 10,001–100,000 310 3.86 3.86 100,001–500,000 78 6.67 6.67 500,001–1,000,000 16 4.66 4.66 1,000,001– 30 70.37 70.37 Unknown holding size 0 11.98 11.98 Total 10,685 100.00 100.00 Source: Modular Finance AB Data per share 2025 2024 Share price at 31 December, SEK 25.88 32.96 Market capitalisation at 31 December, SEK m 6,955 8,705 Dividend, SEK 0.50 0.68 Earnings (attributable to Parent Company shareholders), SEK 1.28 1.31 Equity, SEK 12.6 12.9 Cash flow from operating activities, SEK 3.8 3.6 Average number of shares, basic, (000s) 267,744 264,107 Average number of shares, diluted, (000s) 267,744 264,107 Basic earnings per share, SEK 1.28 1.31 Diluted earnings per share, SEK 1.28 1.31 Number of shareholders at 31 December 10,685 12,540 Outstanding number of shares at 31 December (000s) 268,755 264,107 12M high, SEK 36.70 53.45 12M low, SEK 21.88 28.68 Sweden 40.3% USA 16.1% Finland 12.4% Others 19.3% Unknown country 12.0% Ownership by country Ownership by category Foreign Institutional owners 45% Swedish Institutional owners 22% Swedish natural persons 8% Other owners 25% 0.0 0.5 1.0 1.5 2.0 2.5 20252024202320222021 SEK Earnings and dividend per share* Earnings per share Dividend per share 2018 2019 2020 2021 2022 SEK Number 202520242023 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 JulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJul 0 20 40 60 80 100 120 140 Share price development 2017-05-11–2025-12-31 Source: Monitor by Modular Finance AB * Decisions on dividends are made by the Annual General Meeting. The Board of Direc- tors proposes a dividend of SEK 0.50 per share for the 2025 financial year. Instalco OMX Stockholm_PI OMX Stockholm Industrial Goods & Services PI Number of shares traded in 1,000s per month Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Other information Five-year overview Definitions » The share Subsidiaries Instalco Annual and Sustainability Report 2025 142Directors’ Report – The share
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Subsidiaries Subsidiaries as at 31 December 2025. Sweden Rest of Nordics Norway Finland Germany 1) On 17 March 2025, referred to as step one, Instalco acquired a minority stake of 24 percent of the votes and capital in Fabri Group, a German acquisition-driven installation group, with a long-term plan to achieve majority ownership. Contents Introduction Strategy Operations Corporate Governance Sustainability Statement Financial information Other information Five-year overview Definitions The share » Subsidiaries Instalco Annual and Sustainability Report 2025 143
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Instalco AB Sveavägen 56 C 111 34 Stockholm Sweden info@instalco.se Production: Instalco in collaboration with AVA Corporate Communications. Photo: All pictures Ryno Quantz. Except: pages 16 and 34, Anders Myrdal, page 17 Alf Näslunds Eltjänst, page 18 Fabri, page 20 Intec, page 33 Andreas Rasmussen/Unsplash, page 36 Beijer Alma.