Interim report
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1 Interim Report for Nilörngruppen AB (publ) Q3, January - September 2025 Period July - September • Order intake decreased by 13 percent to MSEK 224 (256), which is mainly due to a larger order of 18 MSEK that was received in Q3 last year but will be received in Q4 this year • Net sales in SEK increased by 11 percent to MSEK 230 (208) • Net sales adjusted for currency effects amounted to MSEK 246, representing an underlying organic increase of 18 percent • Operating profit amounted to MSEK 26.3 (15.3) • Profit before tax amounted to MSEK 25.1 (13.0) • Net profit for the period amounted to MSEK 18.9 (9.8) • Earnings per share amounted to SEK 1.66 (0.86) Period January - September • Order intake was unchanged and amounted to MSEK 696 (697) • Net sales in SEK increased by 2 percent to MSEK 726 (713) • Net sales adjusted for currency effects amounted to MSEK 766, representing an underlying organic increase of 7 percent • Operating profit amounted to MSEK 65.3 (63.4) • Profit before tax amounted to MSEK 60.2 (59.0) • Net profit for the period amounted to MSEK 45.5 (45.2) • Earnings per share amounted to SEK 3.99 (3.96)
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2 CEO Statement Dear shareholders, The third quarter shows a strong result with solid development across several of our operations. Net sales increased by 10 percent to 230 MSEK, and operating profit improved signifi- cantly to 26 MSEK, corresponding to an operating margin of just over 11 percent. Organic growth amounted to 18 percent, adjusted for currency effects, demonstrating stable demand despite a continued challenging global environment. This year’s seasonal pattern is somewhat later, which contrib- uted to higher volumes during the quarter compared to the second quarter. At the same time, a large packaging order that was received in Q3 last year will be received in Q4 this year The luxury segment continues to act cautiously, mainly due to high inventory levels at the retail level. However, we continue to see good development within the outdoor and sports seg- ments. Our efforts to increase capacity and strengthen operational ef- ficiency are progressing according to plan. Investments in Portugal and Bangladesh are important steps in this work, as is the launch of our new PLM system (Product Lifecycle Management), which will be implemented at the end of the year. We expect that it will increase efficiency and improve the customer experience. Nilörn:CONNECT continues to perform well and remains a key part of our offering related to digital product passports and traceability. Customer interest is increasing as EU require- ments approach, and we see opportunities for further growth in this area. We continue to operate in a consolidating market, where larger customers are seeking fewer but more comprehensive suppli- ers. This benefits Nilörn, with our combination of global presence, strong design competence, and controlled produc- tion. At the same tim e, we act with cost awareness and prioritize investments that strengthen our long -term competi- tiveness. In summary, we are delivering a stable quarter with improved profitability, a stronger organization, and promising prospects. Krister Magnusson
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3 Investments and Strategic Initiatives Nilörn has previously decided on several major investments, which are clarified below. Nilörn also continues to carry out planned investments that strengthen the Group’s long -term competitiveness, control, and customer value. The initiatives focus on three main areas. • Production and capacity • Digitalisation and expansion of the offering • Geographical expansion The aim is to ensure that Nilörn remains a strong player in a market characterized by consolidation and increasing de- mands from both customers and authorities. New Factory in Bangladesh Bangladesh is currently one of Nilörn’s most profitable oper- ations. The existing factory, inaugurated in 2018, has for several years delivered stable volumes, strong margins, and high quality. Demand has gradually increased, and capacity has now reached its limit. To meet the needs of existing and new customers, and to further strengthen our competitive- ness, a decision has been made to establish a new factory in Bangladesh. The facility will be built within the Bangladesh Special Economic Zone (BSEZ) – a co llaboration between the governments of Bangladesh and Japan – which provides benefits such as smoother customs and liquidity manage- ment, as well as increased stability in regulations and tax conditions. The investment is estimated at approximately USD 10 million and includes contract for the lease of the land, buildings, and machinery. About half of the investment value relates to machinery, which will be installed gradually in line with increasing demand. The goal is for the facility to be com- pleted during the first half of the year in 2027. The new factory will be a strategic asset that strengthens Nilörn’s position as a full-service supplier and will also attract larger retail cus- tomers who demand high levels of quality control, delivery reliability, and regulatory compliance. Despite the ri sks and challenges associated with the region, we believe strongly in Bangladesh as a textile production country and see signifi- cant opportunities for Nilörn to continue the success we have achieved there. The current factory with a turnover of MSEK 80 is fully utilized and delivers stable profits with good margins. The new fac- tory creates the conditions for continued profitable growth and more than double the turnover . In -house production strengthens control over quality, sustainability efforts, and customer customization. Transformation Journey In recent years, Nilörn has undergone a gradual transfor- mation from a decentralized structure to a more integrated way of working. Previously, the focus was on local sales com- panies with design as a competitive advantage. As demands for transparency, susta inability, and efficiency have in- creased, we have established a central sourcing organization, a global CSR function and an internal compli- ance department supporting both customers and internal teams in navigating complex regulations. The number of suppliers has been reduced, and partnerships have been established with carefully selected partners. At the same time, our share of in -house production has increased, which strengthens both delivery capacity and cost efficiency. Digitalisation and Nilörn:CONNECT The European development within Digital Product Passport (DPP) means that brand owners will need to disclose the origin and environmental impact of their products. Nilörn ad- dresses this through the Nilörn:CONNECT initiative, which combines labels with QR codes or NFC chips linked to a dig- ital system for traceability, data collection, and customer communication. This initiative positions Nilörn as a key part- ner for brands seeking solutions that enable transparency, regulatory compliance, and digital consumer engagement. Development within Packaging To meet demand and broaden our offering – thereby increas- ing Nilörn’s relevance as a full -service supplier – a Category Manager Packaging has been recruited. The goal is to sup- port existing customers within premium and gift packaging while developing new business opportunities within sustaina- ble material solutions, an area where we see great potential. Market and Consolidation The market for labels, packaging, and accessories is cur- rently undergoing clear consolidation, where larger customers are seeking fewer but stronger and more capable partners. This drives the need for suppliers with global pres- ence, digital solutions, and high delivery reliability. Nilörn’s investments in capacity, digitalisation, and organiza- tion are aimed at strengthening our relevance in this evolving market – while also creating the conditions to actively partic- ipate in the ongoing consolidation, both through organic growth and potential acquisitions.
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4 0 2 4 6 8 10 Sustainabilit y Digital Solutions (Nilörn:CO… Global Deliveries Design Packaging Financial Strength Nilörns Transformation 2020 2025
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5 Period July - September Order Bookings The order intake decreased by 13 percent to 224 (256) MSEK. Most of the decrease is attributable to the postpone- ment of a large packaging order to Q4 and continued caution from luxury brands. Adjusted for currency effects and pack- aging orders, order intake amounted to 255 (256) MSEK, i.e. unchanged compared to the previous year. Net Revenue Sales in SEK increased by 11 percent to MSEK 230 (208). Net sales adjusted for currency effects amounted to MSEK 246 (208), representing an underlying increase of 1 8 per- cent. The decline within luxury brands remains significant, with excessive finished goods inventory levels, meaning that recovery is not expected until 2026. Gross Profit The gross margin amounted to 47.3 (48.0) percent. Varia- tions in gross profit between quarters are primarily attributable to individual orders and the distribution of prod- uct groups, where, for example, packaging has a lower gross profit margin. Other Income, Costs, and Depreciation Other operating income amounted to MSEK 4.5 (2.6), mainly attributable to currency effects. Other operating expenses of MSEK 2.6 (4.0) are primarily related to currency. External costs amounted to MSEK 20.5 (21.4), and person- nel costs amounted to MSEK 55.8 (53.4). Depreciation amounted to MSEK 8.3 (8.6). Operating Profit The operating result amounted to MSEK 26.3 (15.2), result- ing in an operating margin of 11.4 (7.3) percent. Net Finance Items, Taxes, and Profit for the Period Net financial items amounted to MSEK -1.2 (-2.3). Tax amounted to MSEK -6.2 (-3.3), resulting in an average tax rate of 2 4.6 percent. Net profit for the period amounted to MSEK 8.9 (9.8), with earnings per share of 1.66 (0.86) SEK. Cash Flow, Capital Expenditures, Financing, and Li- quidity Cash flow from operating activities amounted to MSEK 30.5 (30.6). Cash flow from investing activities amounted to MSEK -3.4 (-6.2). Segments As shown in the segment reporting in Note 3, all segments (Sweden, Other Europe, and Asia) reported an increase in net sales. Operating profit decreased in Sweden, while it in- creased in Other Europe and Asia. Period January-September Order Bookings The order intake remained unchanged and amounted to 696 (697) MSEK. Adjusted for currency effects, order intake amounted to 745 (697) MSEK. Net Revenue and Result Sales in SEK increased by 2 percent to MSEK 726 (713). Net sales adjusted for currency effects amounted to MSEK 766 (713), representing an underlying increase of 7 percent. The gross margin was 45.6 (44.9) percent. Other operating income amounted to MSEK 11.6 (10.0), mainly attributable to currency effects. Other operating ex- penses of MSEK 11.2 (10.3) is mainly attributable to currency effects. External costs amounted to MSEK 65.1 (62.7), and personnel costs amounted to MSEK 175.9 (168.8). Depreciation amounted to MSEK 25.1 (25.1). The operating result amounted to MSEK 65.3 (63.4), result- ing in an operating margin of 9.0 (8.9) percent. Tax amounted to MSEK -14.7 (-13.8), Net profit for the period amounted to MSEK 45.5 (45.2). Segments As shown in the segment reporting in Note 3, both net sales and operating profit increased in Sweden. In Asia, net sales increased while operating profit decreased. In Europe, both net sales and operating profit declined. Equity The group’s equity amounts to MSEK 346.1 (325.6). The change during the period is attributed to the period's profit of MSEK 45.5, a dividend paid of MSEK 17.6, and translation differences of MSEK -32.3. The translation difference is a net effect from converting equity in foreign subsidiaries to SEK and has been negatively impacted by the strengthening of the krona. Cash Flow, Capital Expenditures, Financing, and Li - quidity Cash flow from operating activities amounted to MSEK 60.3 (62.2). Cash flow from investing activities amounted to MSEK -9.2 (-15.8). Net cash at the end of the period amounted to MSEK 31.1 (10.7), with the leasing standard IFRS 16 increasing interest- bearing debt by MSEK 29.9 (22.7). Comparable figures, ex- cluding reclassification under IFRS 16, show net cash of MSEK 61.0 (33.4). The dividend has burdened cash flow by MSEK 17.6 (11.4). Personnel The average number of employees in the group was 686 (661), of which 264 (265) were women (in relation to year -
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6 end). Out of the total number of employees, 5 6 percent are engaged in production and warehousing. Transactions with Related Parties No transactions between Nilörngruppen and related parties that have materially affected the group's results and financial position have taken place during the period apart from paying out dividend. The parent company's transactions with subsid- iaries involve design, product development, IT, and other services. Parent Company The parent company's operations mainly involve managing group-wide functions such as branding and design, product development, finance, administration, information, and IT. The average number of employees amounted to 29 (29) per- sons. Net sales for the year amounted to MSEK 39.7 (31.8). Oper- ating profit amounted to MSEK -3.5 (-4.5) and net profit amounted to MSEK 29.3 (31.2). Risks and Uncertainties With its international operations, Nilörngruppen is continually exposed to various financial risks. The significant risks and uncertainties Nilörngruppen is exposed to include currency risks, political risks in individual countries, credit risks, and IT security, as outlined in Nilörngruppen ’s 2024 annual report, note 2. Audit This report has been subject to a limited review by the com- pany's auditor. See audit report on page 7. Calendar February 12, 2026 Year-end report April 24, 2026 Interim Report Q1 This information is information that Nilörngruppen AB is obli- gated to disclose under the EU Market Abuse Regulation. The information was submitted for publication on October 24, 2025, at 08:00 a.m. through the contact person below. BORÅS 23 October 2025 NILÖRNGRUPPEN AB (PUBL) Krister Magnusson CEO FOR FURTHER INFORMATION CONTACT Krister Magnusson, CEO Mobile: 0704 85 21 14 E-mail: krister.magnusson@nilorn.com Nilörngruppen AB Box 499 503 13 Borås www.nilorn.com
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7 Auditor’s report This is a translation of the Swedish language original. In the event of any differences between this translation and the Swedish language original, the latter shall prevail. To the Board of directors in Nilörngruppen AB (publ), corporate identity number 556322 -3782 Introduction We have conducted a limited review of the condensed interim financial information (interim report) for Nilörngruppen AB (publ) as of September 30, 2025, and the nine-month period ending on that date. The board of directors and the managing director are responsible for preparing and presenting this in- terim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our limited review. The focus and scope of the limited review We have conducted our limited review in accordance with the International Standard on Review En- gagements ISRE 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A limited review consists of making inquiries, primarily of persons responsible for financial and accounting matters, performing analytical procedures, and other review procedures. A limited review has a different focus and a significantly smaller scope compar ed to the focus and scope of an audit conducted in accordance with ISA and generally accepted auditing standards. The review procedures taken in a limited review do not enable us to obtain the assurance that we would become aware of all significant matters that might have been identified in an audit. Therefore, the conclusion expressed based on a limited review does not have the assurance that a conclusion expressed based on an audit has. Conclusion Based on our limited review, nothing has come to our attention that causes us to believe that the in- terim report is not, in all material respects, prepared for the group in accordance with IAS 34 and the Annual Accounts Act and for the parent company in accordance with the Annual Accounts Act. Borås, 23 October 2025 Öhrlings PricewaterhouseCoopers AB Nicklas Kullberg Mattias Palmqvist Authorized Public Accountant Authorized Public Accountant
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8 Summary Financial Reports – the Group Consolidated Income Statement 3 months 9 months July-Sept January-Sept Amounts in SEK thousand 2025 2024 2025 2024 Net revenue 230,259 208,429 726,113 712,767 Raw materials, supplies and goods for resale -121,359 -108,291 -395,148 -392,469 Gross profit 108,900 100,138 330,965 320,298 Other operating revenue 4,527 2,593 11,625 10,003 Other external costs -20,499 -21,430 -65,059 -62,679 Personnel costs -55,772 -53,438 -175,890 -168,814 Depreciation, amortisation and impairment charges -8,252 -8,620 -25,082 -25,120 Other operating costs -2,608 -3,959 -11,238 -10,307 Operating profit 26,296 15,284 65,321 63,381 Net finance items -1,214 -2,270 -5,170 -4,409 Profit before taxes 25,082 13,014 60,151 58,972 Taxes -6,167 -3,264 -14,664 -13,787 Net profit for the period 18,915 9,750 45,487 45,185 Average number of shares outstanding (thousands) 11,402 11,402 11,402 11,402 Average number of shares outstanding after dilution (thousands) 11,402 11,402 11,402 11,402 Earnings per share, SEK 1.66 0.86 3.99 3.96 Earnings per share, SEK after dilution 1.66 0.86 3.99 3.96 Consolidated Statement of Comprehensive Result July-Sept January-Sept Amounts in SEK thousand 2025 2024 2025 2024 Net profit for the period 18,915 9,750 45,487 45,185 Other comprehensive result that may be reposted to net profit for the period Translation differences -4,352 -7,249 -32,232 -2,985 Total profit for the period 14,563 2,501 13,255 42,200 Total profit for the period attributable to: The Parent Company’s equity holders 14,419 2,280 12,686 41,866 Minority interest 144 221 569 334
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9 Distribution by product group RIS = Labels with variable information such as barcodes, care labels, and RFID. Quarterly Income Statements Amount in MSEK) Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net revenue 258.6 237.3 230.3 242.3 262.0 208.4 231.9 221.3 230.2 214.7 203.7 242.3 269.1 232.0 199.3 Raw materials, supplies and goods for resale -142.8 -130.9 -121.4 -137.6 -146.6 -108.3 -124.7 -126.1 -134.4 -117.3 -112.3 -136.2 -150.8 -127.6 -111.7 Gross profit 115.8 106.4 108.9 104.7 115.4 100.1 107.2 95.2 95.8 97.4 91.3 106.2 118.3 104.4 87.6 Gross margin 44.8% 44.8% 47.3% 43.2% 44.0% 48.0% 46.2% 43.0% 41.6% 45.4% 44.9% 43.8% 44.0% 45.0% 44.0% Other income 3.1 4.0 4.5 4.1 3.3 2.6 8.2 4.3 8.2 5.5 7.4 2.7 7.2 8.2 14.3 Operating costs -87.3 -86.0 -78.9 -78.0 -84.9 -78.8 -86.5 -75.2 -80.1 -73.6 -81.9 -61.8 -72.9 -67.2 -80.8 Depreciation, amortisation and impairment charges -8.5 -8.3 -8.3 -8.3 -8.2 -8.6 -9.4 -7.3 -7.8 -8.5 -7.6 -6.9 -7.7 -8.4 -6.9 Operating profit 23.1 16.1 26.3 22.5 25.6 15.3 19.5 16.9 16.1 20.8 9.2 40.2 44.9 37.0 14.2 Operating margin 8.9% 6.8% 11.4% 9.3% 9.8% 7.3% 8.4% 7.6% 7.0% 9.7% 4.5% 16.6% 16.7% 16.0% 7.1% Operating profit per share 2.0 1.4 2.3 2.0 2.2 1.3 1.7 1.5 1.4 1.8 0.8 3.5 3.9 3.2 1.2 2025 2024 2023 2022 Labels 45% RIS Products 29% Packaging 19% Accessories 5% Others 2% 2024 Labels 43% RIS Products 30% Packaging 18% Accessories 7% Others 2% 2025
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10 Quarterly Development Consolidated Balance Sheet Amounts in SEK thousand 2025-09 2024-09 2024-12 2023-12 Assets Intangible non-current assets 52,953 52,004 53,207 47,989 Other non-current assets 125,545 123,141 146,102 120,495 Inventories 148,393 158,109 170,552 165,813 Trade receiveables 110,036 129,545 85,471 106,363 Other current assets 49,560 34,912 41,346 32,470 Cash and cash equivalents 118,711 107,949 100,814 104,719 Total assets 605,198 605,660 597,492 577,849 Equity and liabilities Equity 346,054 325,625 350,389 294,822 Long-term interest-bearing liabilites 14,741 9,278 23,156 8,707 Long-term non-interest-bearing liabilities 5,371 5,938 6,653 6,379 Current interest-bearing liabilities 72,910 87,997 58,408 102,785 Current non-interest-bearing liabilities 166,122 176,822 158,886 165,156 Total equity and liabilities 605,198 605,660 597,492 577,849 0 50 100 150 200 250 300 Q1 Q2 Q3 Q4 Turnover 2021 2022 2023 2024 2025 0 10 20 30 40 50 Q1 Q2 Q3 Q4 Operating Profit 2021 2022 2023 2024 2025
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11 Changes in Consolidated Equity Key Financial Indicators for the Period 1 January - 30 September Amounts in SEK thousand Minority Interest OPENING EQUITY 2025-01-01 2,850 43,231 -6,150 309,680 349,611 778 350,389 Net profit for the period 44,918 44,918 569 45,487 Other total profit Translation differences during the period -32,232 -32,232 0 -32,232 Transactions with shareholders Dividend -17,103 -17,103 -17,590 CLOSING EQUITY 2025-09-30 2,850 43,231 -38,382 337,495 345,194 1,347 346,054 Amounts in SEK thousand Minority Interest OPENING EQUITY 2024-01-01 2,850 43,231 -12,551 260,943 294,473 352 294,825 Net profit for the period 44,852 44,852 334 45,186 Other total profit Translation differences during the period Transactions with shareholders Dividend -11,401 -11,401 -11,401 CLOSING EQUITY 2024-09-30 2,850 43,231 -15,536 294,394 324,939 686 325,625 Total equity Retained earnings including net profit for the period Total Total equity Reserv es Share capital Other contributed capital Retained earnings including net profit for the period Total 2025 2024 Share capital Other contributed capital Reserv es KEY FINANCIAL INDICATORS 2025 2024 2024 2023 2022 2021 2020 Revenue grow th, % 1.9 7.0 8.6 -7.7 19.6 27.5 -13.6 Operating margin, % 9.0 8.9 8.8 7.2 14.5 15.2 8.2 Profit margin, % 8.3 8.3 8.3 6.0 14.0 14.7 7.6 Average equity 348.2 310.2 322.6 314.0 305.8 244.0 198.3 Return on equity, % 17.3 16.1 18.3 12.5 33.0 35.8 16.9 Equity ratio, % 57.2 53.8 58.6 51.0 54.3 50.0 49.7 Interest-bearing net cash (liabilities –) excluding IFRS16, MSEK* 61.0 33.4 60.3 16.9 39.3 75.1 24.8 Earnings per share, SEK 3.99 3.96 5.17 3.45 8.86 7.67 2.94 Equity per share, SEK 30.35 28.56 30.73 25.86 29.22 24.40 18.40 Dividend per share, SEK - - 1.50 1.00 5.00 5.00 2.00 Average number of shares outstanding 11 401 988 11 401 988 11 401 988 11 401 988 11 401 988 11 401 988 11 401 988 Number of shares outstanding at end of period 11 401 988 11 401 988 11 401 988 11 401 988 11 401 988 11 401 988 11 401 988 Average number of employees 686 620 661 593 587 553 499 1 January – 31 Sept 1 January – 31 December
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12 Consolidated Cash Flow Statement Amounts in SEK thousand July-Sept January-Sept 2025 2024 2025 2024 Operating activities Operating profit 26,296 15,284 65,321 63,381 Adjustment for items not included in cash flow Depreciation, amortisation and impairment charges 8,252 8,620 25,082 25,120 Other non cash generated items -605 -1,843 -3,821 -2,068 33,943 22,061 86,582 86,433 Interest income 520 1,402 1,863 2,756 Interest expense -1,129 -1,392 -3,212 -4,659 Paid taxes -6,753 1,269 -15,368 -8,723 Cash flow from operating activities before changes in work- ing capital 26,581 23,340 69,865 75,807 Cash flow from changes in working capital Inventories -476 -7,181 -494 7,370 Trade receivables -3,587 -2,001 -23,571 -23,365 Other short-term receivables -11,151 2,788 -14,076 -2,442 Trade payables 23,800 4,961 32,529 8,015 Other liabilities -4,681 8,714 -3.947 -3,170 Cash flow from operating activities 30,486 30,621 60,306 62,215 Investment activities Acquisition of intangible non-current assets -1,181 -4,144 -3,284 -7,524 Acquisition of tangible non-current assets -2,702 -623 -6,992 -6,668 Change in long-term receivable 439 -1,438 1,094 -1,605 Cash flow from investment activities -3,444 -6,205 -9,182 -15,797 Financing activities Repayment/raising loans -3,542 5,821 16,482 -13,189 Amortisation IFRS16 -4,754 -5,286 -14,630 -15,557 Paid dividend -487 0 -17,589 -11,401 Cash flow from financing activities -8,783 535 -15,737 -40,147 Cash flow for the year 18,259 24,951 35,387 6,271 Cash and cash equivalents at beginning of period 104,273 87,594 100,814 104,719 Translation difference in cash and cash equivalents -3,821 -4,596 -17,490 -3,041 Cash and cash equivalents at end of period 118,711 107,949 118,711 107,949
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13 Summary Financial Reports – Parent Company Parent Company Income Statement 3 months 9 months Amounts in SEK thousand July-Sept January-Sept 2025 2024 2025 2024 Net revenue 15,395 10,633 39,696 31,821 Other operating income 142 0 1,097 0 Total revenue 15,537 10,633 40,793 31,821 Other external costs -4,500 -4,197 -15,277 -11,362 Personnel costs -7,984 -6,702 -25,032 -21,452 Depreciation, amortisation and impairment charges -1,312 -1,303 -3,942 -3,529 Operating profit 1,741 -1,569 -3,458 -4,522 Net finance items 4,997 -409 33,160 38,524 Profit after finance items 6,738 -1,978 29,702 34,002 Taxes -99 187 -389 -2,831 Net profit for the period 6,639 -1,791 29,313 31,171 Since there are no comprehensive profit items, comprehensive income coincides with the period's results. Parent Company Balance Sheet Amounts in SEK thousand 2025-09 2024-09 2024-12 2023-12 Assets Intangible non-current assets 39,671 38,706 39,969 34,481 Tangible non-current assets 927 1119 1,069 1253 Financial non-current assets 159,896 132,188 137,157 130,926 Short-term receivables 112,578 128,921 100,980 105,701 Total assets 313,072 300,934 296,323 272,361 Equity and liabilities Equity 199,143 178,763 186,932 158,994 Untaxed reserves 11,303 14,353 11,303 14,353 Current liabilities 102,626 107,818 98,088 99,014 Total equity and liabilities 313,072 300,934 296,323 272,361
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14 Notes 1. Accounting Policies The consolidated financial statements, similar to those for 2024, have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and the Swedish Financial Reporting Board's recommendation no. 1 (RFR 1). The parent company, similar to the annual report for 2024, prepares its financial statements in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation no. 2 (RFR 2). The interim report has been prepared in accordance with IAS 34 and the Swedish Annual Accounts Act. Disclosures in accordance with IAS 34.16A are provided not only in the financial statements and their accompanying notes but also in other parts of the interim report. New accounting principles for 2025 No new accounting principles that have materially affected Nilörn have come into effect for the year 2025 2. IFRS 16 Leasing Report of financial position 30-Sep-25 Of which ef- fect of IFRS 16 30 Sept. 2025 not incl. effect of IFRS 16 Other non-current assets 125,545 30,694 94,851 Other current assets 49,560 -1,357 50,917 Equity (profit for the year) 346,054 -528 346,582 Long-term interest-bearing liabilities 14,741 14,448 293 Short-term interest-bearing liabilities 72,910 15,417 57,493 Total effect on equity 29,337 Report of effects on profit Jan-Sept 2025 Of which ef- fect of IFRS 16 Jan-Sept 2025 not incl. effect of IFRS 16 Other external cost -65,059 14,630 -79,689 Depreciation, amortisation and impairment -25,082 -13,864 -11,218 Net finance items -5,170 -756 -4,414 Taxes -14,664 -19 -14,645 Total -109,975 -9 -109,966 Key financial indicators Jan-Sept 2025 Of which ef- fect of IFRS 16 Jan-Sept 2025 not incl. effect of IFRS 16 Operating margin 9.0% 0.1% 8.9% Net cash and cash equivalents (liabilities −), MSEK 31.1 -29.9 60.9 Equity ratio, % 57.2% -2.9% 60.1%
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15 3. Information by Geographic Area Primary segment - geographic areas Period July-Sept 2025 Sweden Europe Asia Intra Group Total Revenue External revenue 8,976 72,471 148,812 0 230,259 Total revenue 8,976 72,471 148,812 0 230,259 Profit Operating profit -119 9,940 14,309 2,166 26,296 Interest income 520 520 Interest expense -1,734 -1,734 Taxes on the on the period’s profit -6,167 -6,167 Net profit for the period -119 9,940 14,309 -5,215 18,915 Period July-Sept 2024 Sweden Europe Asia Intra Group Total Revenue External revenue 6,344 66,647 135,438 0 208,429 Total revenue 6,344 66,647 135,438 0 208,429 Profit Operating profit 878 2,150 13,417 -1,161 15,284 Interest income 1,370 1,370 Interest expense -3,640 -3,640 Taxes on the profit for the year -3,264 -3,264 Net profit for the year 878 2,150 13,417 -6,695 9,750 Period January-Sept 2025 Sweden Europe Asia Intra Group Total Revenue External revenue 33,159 250,798 442,156 0 726,113 Total revenue 33,159 250,798 442,156 0 726,113 Profit Operating profit 3,989 25,832 37,735 -2,235 65,321 Interest income 1,863 1,863 Interest expense -7,033 -7,033 Taxes on the on the period’s profit -14,664 -14,664 Net profit for the period 3,989 25,832 37,735 -22,069 45,487 Period January-Sept 2024 Sweden Europe Asia Intra Group Total Revenue External revenue 25,688 274,494 412,585 0 712,767 Total revenue 25,688 274,494 412,585 0 712,767 Profit Operating profit 2,304 26,444 37,785 -3,152 63,381 Interest income 2,724 2,724 Interest expense -7,133 -7,133 Taxes on the profit for the year -13,787 -13,787 Net profit for the year 2,304 26,444 37,785 -21,348 45,185
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16 4. Definitions of alternative key financial indicators ESMA (The European Securities and Markets Authority) has published guidelines for alternative key financial indicators for companies with securities listed on a regulated market within EU. These guidelines shall be applied to alternative key financial indicators used starting 3 October 2016. Reference is made in the annual accounts to a number of non –IFRS performance metrics used to help investors as well as management to analyse the company’s operations. These financial metrics should therefore not be seen as replacements for metrics defined according to IFRS. Since all companies do not calculate financial metrics in the same way, they are not always comparable with metrics used by other companies. These financial metrics should therefore not be seen as rep lacements for metrics defined according to IFRS. We describe below the various non –IFRS per- formance metrics used as a complement to the financial information reported in accordance with IFRS and how these metrics have been used. Definitions of key financial indicators not defined by IFRS Non IFRS-metric Definition Calculation Justification Average Equity Equity at the beginning of the period, plus equity at the end of the period, divided by two (346 054 + 325 625) / 2 The metric is the difference between the Group’s assets and liabilities, which is equivalent to consolidated equity contributed by owners and the consolidated aggregated profit. This metric is used to report the capital at- tributable to the Group’s owners. Average Number of Employees Average number of yearly em- ployed This metric is used to measure the de- velopment of the Group’s workforce. Revenue Growth Net revenue at the end of the period, minus net revenue at the beginning of the period, divided by net revenue at the beginning of the period. (726 113 – 712 767) / 712 767 This metric is used to analyse profita- bility over time, given the resources attributable to the Parent Company’s owners. Return on Equity Profit after tax for the past 12 months as a percentage of aver- age equity in the corresponding period 59 231 / 343 000 This metric is used to analyse profita- bility over time, given the resources attributable to the Parent Company’s owners. Interest–bearing net cash and cash equivalents/liabilities excl FRS16 Interest–bearing receivables, cash and cash equivalents, re- duced by interest –bearing liabilities. 118 711 – 14 741 – 72 910 + 14 448 + 15 417 The metric shows the total debt fi- nancing and is used as a complement to judge the feasibility of paying divi- dends, to implement strategic investments and to gauge the Group’s ability to meet its financial obligations. Operating Margin Operating result in percent of net revenue. 65 321 / 726 113 This metric is used to measure opera- tive profitability. Equity Ration Equity in percent of balance sheet total. 346 054 / 605 198 This measure shows the proportion of the company’s total assets financed with equity by its shareholders. A high equity ratio is an indication of financial strength. Profit Margin Result before tax in percent of net revenue. 60 151 / 726 113 This metric makes is p ossible to measure the profitability no matter tax rate
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17 Nilörngruppen in Brief Nilörngruppen is a global company founded in the 1970s, with expertise in adding value to trademarks through branding in the form of labels, packaging and accessories, primarily for customers in the fashion and apparel industry. Nilörngruppen offers complete, creative and customised concepts in branding, design, product development and logistic solutions. The Group con- ducts business via its own subsidiaries in Sweden, Denmark, Great Britain, Germany, Belgium, Portugal, Hong Kong, India, Turkey, China, Bangladesh, Italy and Pakistan, Switzerland, Vietnam and USA.