Annual report
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Pamica Annual Report 2025
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Operations Industry segment ............................... 9 Services segment ............................. 10 Innovations segment .......................... 11 Other information Definitions of alternative performance measures ...................... 91 Alternative performance measures ...... 92 Contacts and financial calendar .......... 93 Corporate governance Corporate governance at Pamica ......... 13 Auditor’s report on the corporate governance statement ....................... 16 Board ............................................. 17 Management ................................... 18 The legal Annual Report that has been audited by the auditors comprises pages 20-86. This PDF of the Annual Report is available in Swedish and English. The Swedish version takes precedence. Pamica Annual Report 2025 Overview This is Pamica ................................... 3 The year in brief ................................ 4 CEO’s comments ............................... 5 Strategy and value creation .................. 7 Financial statements Consolidated financial statements ....... 53 Parent Company financial statements . . 57 Notes to the financial statements ......... 61 The Board of Directors’ certification ..... 86 Auditor’s Report .............................. 87 Auditor’s review of the Sustainability Report ......................... 89 Board of Directors’ Report Financial overview ........................... 20 Risk and risk management ................. 22 Sustainability Report ......................... 23 ESRS 2 General disclosures ............. 23 E1: Climate change ........................ 30 E2: Pollution ................................. 34 E5: Resource use and circular economy ........................... 35 Disclosures under the EU Taxonomy Regulation ..................... 37 S1: Pamica’s workforce .................... 39 S2: Workers in the value chain.......... 44 G1: Business conduct ..................... 45 Appendices .................................. 47 2 Overview2025 Annual ReportPamica Operations Corporate governance Board of Directors’ Report Financial statements Other information Contents
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Active owner of well-run companies Pamica acquires small and medium-sized well-run companies that offer technology solutions, services and have their own products and brands. Common to all our companies is that they have close customer relationships and sales in areas where a leading position can be achieved. Often, the compa- nies become part of Pamica when family businesses or indi- vidual owners are looking for a partner who can contribute to the next step in their development. A prerequisite for acquisitions is that the companies have built close and long-term relationships with customers and suppliers, have skilled management, are characterized by a genuine entrepreneurial spirit, possess in-depth expertise in their industry and that we share fundamental values. Together, we make the companies sustainably successful, with great freedom for each company management and the Board under the framework of a defined owner model and with the support of our unique network of more than 300 owners and entrepreneurs. Our companies also receive support to consolidate their industry or make strategic acquisitions. Since it was founded in 2016, Pamica has carried out 80 acquisitions, the majority of which were add-on acquisitions to the Group’s 16 portfolio companies. In 2025, the Group’s net sales increased 13% to MSEK 5,114 and adjusted EBITA rose 28% to MSEK 436. Contributions from many companies Geographic spread Portfolio companies 16 Employees 2,250 Acquisitions since 2016 80 Adjusted EBITA 2025 +2 8 % Jan-Olof Svensson President and CEO Company portfolio spanning 3 segments Net sales per segment Net sales per portfolio company Net sales per geography Pamica Group is a long-term owner that acquires and develops well-run businesses with the potential to achieve high profitability and generate strong cash flows. Our focus is on companies that have their own products, unique offerings and a stable aftermarket. Together with successful entrepreneurs, we develop the companies both organically and through add-on acquisitions based on a decentralized model. Indu stry 33% Ser vices 54% Inno vations 13% Sw eden 63% Other Nor dic countries 11% R est of Europe 15% Asia/ Australia 2% Nor th America 8% Other co untries 1% SKAB 17% Alf a 15% Be ans in Cup 13% Sappa 10% PPP 8% Ho user 7% Ar tex 6% Other 24% 3 2025 Annual ReportPamica Operations Corporate governance Board of Directors’ Report Financial statements Other information OverviewThis is Pamica
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Louise Ankarcrona new CFO In August, Louise Ankarcrona was appointed the new CFO of Pamica Group as of October 1, 2025. Louise Ankarcrona previously served as Finance Director BA Services at Storskogen Group and CFO at Hemfrid. Listing of Pamica Group’s bond In early November, Pamica Group issued senior secured bonds of MSEK 250 to finance acquisitions. On November 26, Pamica Group’s secured bonds of a total nominal amount of MSEK 1,450 were admitted for trading on Nasdaq First North Bond Market. Three high-profitability acquisitions The add-on acquisitions of ABC Karossen i Mönsterås and ALMA Electronics as well as the acquisition of the portfolio company HTSM Eskilstuna were com- pleted in December. ABC Karossen manufactures and assembles custom carriers, flatbeds, covers and spe- cial wagons in sandwich constructions and is part of the portfolio company SKAB-Gruppen. ALMA E lectronics produces and sells subcontracted circuit board solutions and is part of Alltronic. HTSM Eskilstuna serves as a traffic coordinator and con- struction traffic manager in connection with work being performed on and around railway tracks. The year in brief Increase in net sales 13% Adjusted EBITA margin 8.5% Increase in adjusted EBITA 28% Summary 2025 2024 Net sales, MSEK 5,114 4,535 Adjusted EBITA, MSEK 436 341 Adjusted EBITA margin, % 8.5 7.5 Cash flow from operating activities, MSEK 437 444 Number of employees 2,250 2,400 Joacim Lindoff appointed Operational Director and Deputy CEO At the end of 2025, Joacim Lindoff was appointed Operational Director and Deputy CEO of Pamica Group and member of the Group’s management team as of January 1, 2026. Joacim Lindoff has a background from the global medical tech company Arjo, where he served as CEO for eight years and previously held a number of senior roles at Getinge. Total GHG emissions tCO2eq 44,7 44 Structural divestments In October, the portfolio company Logiwaste was divested and in November all subsidiaries of V efi Holding were divested. These transactions are part of Pamica’s strategic plan to reduce leverage in the Group and increase profitability. 4 2025 Annual ReportPamica Operations Corporate governance Board of Directors’ Report Financial statements Other information The year in brief Overview
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Acquisitions that strengthen the Group We completed two large add-on acquisitions in December: ABC Karossen i Mönsterås and ALMA Electronics. ABC Karossen manufactures and assem- bles custom carriers, flatbeds, covers and special w agons in sandwich constructions and is now part of our portfolio company SKAB-Gruppen. ALMA E lectronics produces and sells subcontracted circuit board solutions and is part of Alltronic. In addition, we completed the acquisition of the portfolio compa- ny HTSM Eskilstuna that serves as a traffic coordina- tor and construction traffic manager in connection with work being performed on and around railway tracks. In conjunction with this, the Group issued subsequent bonds of MSEK 250 to finance the acqui- sitions and listed these bonds as well as other bonds of MSEK 1,200 on Nasdaq Stockholm’s list for corpo- rate bonds in November. Expanding the scope of the Group’s sustainability work In 2025, we expanded the scope of our sustainability work to include fully aligned sustainability reporting and the application of the European Sustainability Reporting Standards. In light of this, we updated our double materiality assessment and relevant policies to further strengthen the direction of our continued su stainability efforts. We also started work on a t ransition plan to limit the Group’s climate impact. Stable structure for profitable growth A decade ago, we formed what is today Pamica Group, owned by just over 300 experienced owners and company builders. Over the years, we have com- pleted 80 acquisitions, 16 of which are now portfolio companies and the remainder are add-on acquisitions. In 2025, we invested significant resources into increasing the profitability of the Group’s companies. These efforts were successful, particularly in the s econd half of the year, which was reflected in the financial performance for the full year. Net sales increased 13% to MSEK 5,114, adjusted EBITA rose 28% to MSEK 436 and the adjusted EBITA margin increased one percentage point to 8.5%. We are on the right track and continuing our endeavors to streamline our operations and focus on profitable growth. Structural measures In addition to improvements in the companies, we implemented a number of structural measures to raise profitability . The moving services company Freys Express became a part of Alfa Mobility and in the sec- ond half of the year the defense company Micropol com- menced a close collaboration with Stapp, which manu- factures and sells equipment and software for shooting ranges primarily for the military and police force. Fur- thermore, in the fourth quarter we divested all of the subsidiaries of V efi Holding and the portfolio company Logiwaste Holding to owners that are better posi- tioned to develop these operations while we strengthen our focus and financial performance measures. “Our operations encompass expertise and winning business models and we have engaged company management that deliver results. ” Jan-Olof Svensson, President and CEO 5 2025 Annual ReportPamica Operations Corporate governance Board of Directors’ Report Financial statements Other information CEO’s comments Overview
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Strengthened management team During the year, we evaluated our model for govern- ing our companies. We have grown rapidly in recent years, thus increasing the need for structure. As part of this work, Joacim Lindoff was appointed Opera- tional Director and Deputy CEO at the end of the year. Joacim has an extensive industrial experience, whose previous positions include CEO of the listed company Arjo. In the autumn of 2025, together with the company’s management, the Board and myself, Joacim explored what an improved structure for the Group would look like, and since the start of this year, he has assumed responsibility for Pamica’s oper- ations and governance of the Group’s portfolio com- panies. We were also delighted to appoint Louise Ankarcrona as our new CFO in October. Louise has worked as Finance Director BA Services at Storsko- gen Group since 2021 and was CFO of Hemfrid from 2018 to 2021. Louise has a commercial mindset and brings solid expertise to Pamica. Continued focus on profitability and streamlining In 2025, we took many important steps to create the conditions for a long-term sustainable improvement in profitability and we will continue this work in 2026. Our operations encompass expertise and w inning busimess models and we have engaged c ompany management that deliver results. To con- clude, I would like to thank all the more than 2,000 employees in our companies who are working hard to make us even better, step by step! Jan-Olof Svensson President and CEO Pamica Group AB W e will continue to develop the Group in 2026 through: • Impr oved adjusted EBITA margin • R educed indebtedness • Continu ed focus on profitability and efficiencies • Stru ctural measures including both divestments and acquisitions “Since the company was founded in 2016, we have carried out 80 acquisitions, the majority of which were add-on acquisitions.” 6 2025 Annual ReportPamica Operations Corporate governance Board of Directors’ Report Financial statements Other information OverviewCEO’s comments
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Vision Be the owner that every entrepreneur wants to work with. Mission Building sustainable and profitable companies together with knowledgeable and committed people. From a social perspective, responsible business development is essential for creating the environments and products that safeguard people’s lives. Investment strategy Acquire and develop well-run businesses with the potential to achieve high profitability and generate strong cash flows. Focus on companies that have their own products, unique offerings and a stable aftermarket. Develop the companies in a clear, decentralized organizational model, that allows the companies to operate their business based on well-defined and clear structures and targets. Supportive owners and unique network Pamica has more than 300 owners who have been added gradually since the company was founded in 2016. The owners consist of people and entrepreneurs who are engaged in business development. Part of the ownership base is made up of people who invested in Pamica when they sold their business. There are also owners who are actively involved in the Boards of our companies or serve as advisors. What makes Pamica unique is that we actively seek to capitalize on the expertise and networks of our owners. We hold quarterly public meetings in connec- tion with our interim reports that are attended by most of our owners and we arrange an annual investor event in Halmstad, where our companies’ CEOs and chairmen participate and present their operations. Clear investment strategy More than 90 percent of our acquisitions were i dentified and evaluated using our network of former entrepreneurs. In addition to strategic and financial performance, culture is paramount. Our comprehensive M&A pro- cess ensures that acquired companies are compatible with the Pamica culture. Pamica primarily acquires industrial companies with entrepreneurial management teams that have created a unique customer offering, enjoy close cus- tomer relationships, and lead companies with a strong market position and a clear aftermarket. In some cases, our acquired businesses have a unique technol- ogy and/or patents. We prefer scalable and sustainable business models in stable industries with high cash flow generation, annual sales exceeding MSEK 50 and profitability exceeding an EBITA margin of 10%. A prerequisite for our ability to assess companies is that we have expertise and experience in our team and network that can evaluate and support a future development journey . Companies are mainly attracted to Pamica by the opportunity to receive support for carrying out a change of ownership. We receive a strong inflow of investment proposals and plan to continue with the same pace of acquisitions as before. We want to minimize disruption and prioritize seamless onboarding processes that do not interrupt the daily operations. Value-creation model for business development Our entrepreneurs appreciate our local culture, our long-term ownership horizon and our genuine inter- est in developing the companies we acquire. We are simple in our way of being and offer a decentralized structure under which each company is governed independently , with its own Boards and management teams with a full mandate to develop the business and with its own responsibility for results. The best decisions are made by those who work closely with customers and truly understand their needs. However, conditions for profitable growth are created through a structured process where each company sets the business plan and budget, and these are endorsed by the Pamica Group’s Board. Our role as an owner is to support our companies by setting and agreeing on clear targets and to bring industrial expertise, financing and business development. When needed, we allocate resources to achieve goals and expectations. We focus on profitable growth, profit margins and efficient capital management. At the same time, the door is always open for manage- ment teams to seize business opportunities and adapt their operations to new conditions. Dialog on rapid action and decisions is conducted with the investment managers of each Pamica compa- ny , who have led and built companies. This has c reated a unique corporate culture centered on entre- preneurship, development and customers at all levels of Pamica. Through our model, owners and management who sell their companies to Pamica can combine the benefits of our expertise and network with the contin- ued freedom to develop their businesses. Our compa- nies can also benefit from benchmarking and informal exchange of ideas and experiences among themselves. Effective model for acquisitions and development 7 2025 Annual ReportPamica Operations Corporate governance Board of Directors’ Report Financial statements Other information OverviewStrategy and value creation
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Acquisitions 2016-2025 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 1 0 24 23 19 4 32 8 4 4 3 38 2 1 5 80 4 1 9 47 8 1 15 62 11 4 2 75 2 11 73 5 63 35 3 * P ortfolio companies that were included in the Group on December 31, 2025. Pamica has acquired a total of 22 portfolio companies since 2016. Five of these have been divested (Somna, Safe Solutions, Logiwaste, Vefi and Cupola) and two were merged with existing portfolio companies (Freys Express is part of Alfa Mobility since 2025 and EDAB is part of STAPP since 2025). P ortfolio companies* A dd-on acquisitions Number o f acquisitions T otal acquisitions 8 2025 Annual ReportPamica Operations Corporate governance Board of Directors’ Report Financial statements Other information OverviewStrategy and value creation
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Vefi is an innovative pro- ducer of packaging solu- tions to professional plant growers, primarily hydroponics. Their lead- ing position in the Nor- dics is based on strong customer relationships, a high service level and in-depth knowledge of customers’ needs. 6% Alltronic constructs and produces customized electronics, primarily circuit boards. Alltronic operates in three busi- ness areas: Production, Sourcing and Project Management. Share of the segment’s sales 3% Industry segment Artex is a leading su pplier of advanced textile-based products and a pioneer in large- scale and environmen- tally friendly refurbish- ment of products in the public transport, furni- ture and automotive industries. Solideq develops and sells scaffolding, weath- er protection and asso- ciated products. It's cus- tomers are found within construction and civil engineering, oil and gas and maritime industries as well as private indi- viduals. The Group also conducts e-commerce. The companies in the Industry segment produce and sell products, customized solutions and systems that are often developed in close cooperation with custom- ers. The segment reported net sales of MSEK 1,671 in 2025, an increase of 37%. Adjusted EBITA increased 90.3% to MSEK 178.1, corresponding to an adjusted EBITA margin of 10.7%. In 2025, the two largest portfolio companies, m easured as a share of the segment’s net sales, accounted for 69% of the segment’s total net sales. Two add-on acquisitions were completed in the s egment on December 18: ABC Karossen i Mönsterås, which is part of SKAB-Gruppen, and ALMA E lectronics, which is part of Alltronic. On October 31, the portfolio company Logiwaste was divested and on November 18 all subsidiaries of V efi Holding were divested. Absortech specializes in the development of prod- ucts and services to avoid water damage during transport. With its offer of Peace of Moisture Mind® , it helps its cus- tomers to increase trans- port productivity , protect the brand and reduce environmental impact. SKAB-Gruppen manu- factures customized load carriers with sandwich design for the transport industry , as well as mobile special constructions for a variety of differ- ent purposes. Share of the segment’s sales Share of the segment’s sales Share of the segment’s sales Share of the segment’s sales 51% 18% 11% 9% Logiwaste develops and builds systems for auto- mated waste and laun- dry collection. The end users consist of hospi- tals, residential areas, office properties and other commercial businesses. Share of the segment’s sales 2% Operations divested in 2025 Adjusted EBITA per segment MSEK Indu stry 178 Ser vices 130 Inno vations 153 Net sales per segment MSEK Indu stry 1,671 Ser vices 2,753 Inno vations 686 Share of the segment’s sales 9 Overview2025 Annual ReportPamica Corporate governance Board of Directors’ Report Financial statements Other information OperationsPamica’s Great Companies
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Segment Services Beans in Cup sells machines for drinks, such as coffee and water, as well as relat- ed consumables, and service for the machines it sells, as well as refrigerated and frozen vending machines. Share of the segment’s sales 24% Alfa Mobility offers pub- lic operations, interna- tional companies and private individuals a broad portfolio of ser- vices in Immigration, Relocation and Move. The operation has offic- es at several locations in the Nordic region. Share of the segment’s sales 28% Sappa offers superfast and stable broadband for all internet users, one of Sweden’s most compre- hensive TV offerings, digital care services and telephony. The company is one of Sweden's largest telecom companies and strives to provide world- class customer service. Share of the segment’s sales 19% PPP is one of the largest employee-led communi- cations agency groups in the Nordics. Employees work with everything from PR, photography and design to web, mar- keting automation, lead generation, content, etc. Some of PPP’s agencies are Spoon and Oh My . Share of the segment’s sales 14% Houser offers window cleaning and roof clean- ing for private individu- als and external house care such as window cleaning, roof cleaning, facade cleaning and ot her outdoor cleaning for companies. Share of the segment’s sales 13% IM Vision offers rental and sales of LED solutions for fixed installations and events. Customers can be found in a large number of industries, in entertainment, leisure industry , automotive industry , retail trade, real estate and gyms. Share of the segment’s sales 1% HTSM Eskilstuna is the main supervisor in Swe- den, with the Swedish Transport Administra- tion being the biggest cli- ent. The company acts as a traffic coordinator and construction traffic man- ager in connection with work being performed on and around railway tracks. Part of the segment from January 1, 2026 Operations acquired in 2025 Adjusted EBITA per segment MSEK Indu stry 178 Ser vices 130 Inno vations 153 Net sales per segment MSEK Indu stry 1,671 Ser vices 2,753 Inno vations 686 The companies in segment Services are service com- panies with strong positions in specific niches. The segment reported net sales of MSEK 2,753 in 2025, an increase of 3%. Adjusted EBITA increased 32.5% to MSEK 130, corresponding to an adjusted EBITA m argin of 4.7%. In 2025, the two largest portfolio companies, mea- sured as a share of the segment’s net sales, accounted for 52% of the segment’s total net sales. The acquisition of the portfolio company HTSM Eskilstuna was completed on December 18. The com- pany is main supervisor in Sweden, with the Swedish Transport Administration being the biggest client. The company acts as a traffic coordinator and con- struction traffic manager in connection with work being performed on and around railway tracks. 10 Overview2025 Annual ReportPamica Corporate governance Board of Directors’ Report Financial statements Other information OperationsPamica’s Great Companies
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Segment Innovations Waboba develops and sells innovative and high-quality products for outdoor games. The largest product groups are “backyard games” and “beach games. ” Waboba sells its products in over 70 countries. Micropol is a Swedish manufacturer of com- munication solutions based on fiber optics. Serving defense orga- nizations and solution providers, Micropol meets the highest stan- dards for quality and performance. STAPP manufactures and sells equipment for indoor and outdoor shooting ranges. The environmentally friendly and safe bullet trap, and the software and hard- ware, are used in target- ing systems at shooting ranges by shooting clubs, police and military . Delta of Sweden devel- ops and manufactures creative materials, pri- marily for the toy indus- try in North America and Europe. The prod- ucts are licensed to toy manufacturers for sale under the customers’ own brands. Share of the segment’s sales Share of the segment’s sales Share of the segment’s sales Share of the segment’s sales 26% 35% 29% 10% Adjusted EBITA per segment MSEK Indu stry 178 Ser vices 130 Inno vations 153 Net sales per segment MSEK Indu stry 1,671 Ser vices 2,753 Inno vations 686 The companies in segment Innovations are niche companies with unique offerings and/or patents, with clear scalability and international potential. The segment reported net sales of MSEK 686 in 2025, an increase of 8%. Adjusted EBITA declined 10.3% to MSEK 153, corre- sponding to an adjusted EBITA margin of 22.3%. In 2025, the two largest portfolio companies, m easured as a share of the segment’s net sales, accounted for 64% of the segment’s total net sales. 11 Overview2025 Annual ReportPamica Corporate governance Board of Directors’ Report Financial statements Other information OperationsPamica’s Great Companies
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Corporate governance Corporate governance Corporate governance at Pamica ........................... 13 Auditor’s report on the corporate governance statement ......................................... 16 Board ............................................................... 17 Management ..................................................... 18 Corporate governance 12Overview2025 Annual ReportPamica Board of Directors’ Report Financial statements Other information Operations
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Corporate governance Corporate governance at Pamica Pamica Group AB (the “company”) is a Swedish public limited company and the governance of Pamica Group AB is based on both external and internal regulations. The Board is responsi- bility for corporate governance and internal control is regulated by Swedish legislation and external regulations. The company endeavors to comply with the Swedish Corporate Governance Code as far as possible. The Board has prepared and adopted a number of policy d ocuments in order to establish guidelines for operating the company . These provide guidance for the organization and its employees based on the fundamental values and principles that are to govern the operations and conduct. Important external regulations • S wedish Companies Act • Sw edish Annual Accounts Act • I FRS® Accounting Standards as endorsed by the EU • M arket Abuse Regulation (“MAR”) Important internal regulations and documents • A rticles of Association • W ritten rules of procedure for the Board and its Committees • De cision-making procedures/authorization manuals • I nstructions for the CEO and reporting instructions • I nternal guidelines, policy documents and manuals that p rovide guidance for the Group’s operations and its em ployees, such as the Pamica Group Code of Conduct. The company’s auditor has performed a statutory review of the corporate governance report in accordance with the Annual Accounts Act. This review involves examining that the report has been prepared and that certain disclosures are consistent with the other parts of the Annual Report. The review did not have the same scope as an audit. The auditor’s opinion is i ncluded in the auditor’s report. Shareholders and general meetings Share capital and shareholders Pamica Group is unlisted. The share capital at year-end amount- ed to approximately MSEK 0.7, distributed between a total of 108,064,324 shares. One share carries entitlement to one vote. The company is owned 14.8% by Pamica 3 AB, Corp. Reg. No. 559379-2889, 12.4% by Pamica 4 AB, Corp. Reg. No. 559428- 2914, and 72.7% by co-investors. Pamica 3 AB and Pamica 4 AB represent indirect ownership from a number of underlying investors. No single shareholder directly or indirectly controls more than 10% of the shares. General meetings According to the Companies Act, the general meeting is the company’s highest decision-making body . At the general meet- ing, the shareholders exercise their right to vote on key issues, for example, the adoption of income statements and balance sheets, appropriation of the company’s earnings, discharge from liability for Board members and the CEO, election of Board members and auditors and remuneration to the Board and the auditors. The Annual General Meeting must be held within six months of the end of the financial year. In addition to the Annual Gen eral Meeting, an extraordinary general meeting can be c onvened. According to the Articles of Association, notices of a general meeting are to take place through an advertisement in Post- och Inrikes Tidningar and by publishing the notice on the company’s website. An announcement that a notice has been issued must also be simultaneously published in Dagens Industri. Shareholders who wish to participate in the general meeting must firstly be entered in the share register maintained by Euroclear on the day falling six banking days before the meet- ing, and secondly register attendance at the general meeting with the company no later than the day specified in the notice of the general meeting. Shareholders can attend general meet- ings in person or by proxy and can also be assisted by a maxi- mum of two people. It is usually possible for shareholders to register for the general meeting in several different ways, which are detailed in the notice of the general meeting. In addition to notifying the company of their intention to attend the general meeting, shareholders whose shares are trustee-registered through a bank or other trustee must request that their shares be temporarily registered in their own name in the share regis- ter maintained by Euroclear in order to have the right to partici- pate in the general meeting. A shareholder or their representa- tive is entitled to vote for all shares that the shareholder holds or represents. Shareholders who wish to have a matter dealt with at the general meeting must send a written request to the Board. The request must normally reach the Board well in advance of the general meeting, in accordance with the information provided on the company’s website in connection with the publication of the time and place of the general meeting. 2025 Annual General Meeting The 2025 Annual General Meeting was held on June 12, 2025 at the company’s premises at Kronobränneriet, SE-302 42 Halms- tad, Sweden. 89 shareholders were represented at the Annual General Meeting, in person or by proxy , representing a total of approximately 51.69% of the votes and capital. The minutes and information on the 2025 Annual General Meeting are published on Pamica’s website in both Swedish and English. The 2025 Annual General Meeting resolved on matters including: • P rofit of SEK 3,070,678,269 at the disposal of the Annual General Meeting to be carried forward • F ees of SEK 500,000 to be paid to the Chairman of the Board and SEK 250,000 to each Board member and remuneration of the auditor • R e-election of Board members Tomas Franzén, Ulrika Saxon von Essen, Johan Ryding, Jan Klippvik, Lina Stolpe and Ulrika Valassi. Tomas Franzén was re-elected Chairman of the Board. • R e-election of audit firm KPMG • R esolution on authorization for the Board to resolve on issue of new shares, convertibles and warrants • R esolution regarding implementation of a warrant-based incentive program 2025/2028 I for senior executives and key employees. • R esolution regarding implementation of a warrant-based incentive program 2025/2028 II for Board members Nomination Committee The Annual General Meeting resolved on the principles for the appointment of the Nomination Committee and these principles shall apply until further notice until otherwise decided by a gen- eral meeting. The Nomination Committee shall consist of four members representing the three largest shareholders in terms of voting rights as per the last weekday of October plus the Chair- man of the Board. The term “largest shareholders” means the largest shareholders who are registered or otherwise known to the company. If any shareholder waives its right to appoint a Committee member, the shareholder who is the next largest in terms of v oting rights shall be invited to appoint a member. The majority of the Nomination Committee’s members shall be independent in relation to the company and its management. The mandate period for the Nomination Committee extends until a new Nomination Committee is appointed. If a member resigns from the Nomination Committee, the shareholder who appointed the member shall be entitled to appoint a replacement. Since 2023, Pamica’s Nomination Committee has consisted of appointed members representing the three largest shareholders: Pamica 3 AB, Pamica 4 AB and Ibexia AB. Board of Directors Composition of the Board The Board members are normally elected by the Annual Gen eral Meeting for the period until the end of the next Annual General Meeting. According to the company’s Articles of Association, the Board, to the extent it is elected by the general meeting, shall consist of 3–10 members with no deputies. At present, the company’s Board consists of six ordinary members, of whom three women and three men. The Chairman of the Board is to be elected by the Annual General Meeting and have special responsibility for the management of the Board’s work and for the Board’s work to be well organized and carried out efficiently . 13 Overview2025 Annual ReportPamica Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Responsibilities and duties of the Board The Board is the company’s highest decision-making body after the general meeting. According to the Swedish Companies Act, the Board is responsible for the company’s management and organization, which means that the Board is responsible for, among other things, determining goals and strategies, ensuring routines and systems for evaluating established goals, continu- ously evaluating the company’s earnings and financial position, and evaluating the operational management. The Board is also responsible for ensuring that the Annual Report and interim reports are prepared on time. In addition, the Board appoints the company’s CEO. The Board has, in accordance with the Swedish Companies Act, established a written procedure for its work, which must be evaluated, updated and adopted annually . The Board meets reg- ularly according to a program established in the rules of proce- dure, which contains certain fixed decision points and certain decision points when necessary . In addition to these Board meetings, additional Board meetings can be convened to deal with issues that cannot be referred to a regular Board meeting. In addition to the Board meetings, the Chairman of the Board and CEO have an ongoing dialog regarding the management of the company. The Board can establish committees with the task of prepar- ing matters within a certain area and can also delegate deci- sion-making rights to such a committee, but the Board cannot absolve itself of responsibility for the decisions made on the basis thereof. If the Board decides to establish committees with- in itself, the Board’s rules of procedure must state which tasks and which decision-making authority the Board has delegated to the committees, as well as how the committees must report to the Board. The Board has established an Audit Committee in accordance with the Swedish Companies Act and a Remunera- tion Committee. The CEO reports to the Board and is responsible for the com- pany’s ongoing administration and the day-to-day operation of the business. The distribution of work between the Board and the CEO is specified in the rules of procedure for the Board and the instructions for the CEO. The CEO is also responsible for preparing reports and compiling information from the manage- ment before Board meetings and is the presenter of the material at the Board meetings. The CEO must ensure that the Board receives appropriate information to be able to continuously evaluate the company’s financial position. The Board’s work in 2025 A total of nine minuted Board meetings were held in 2025: four scheduled, one statutory per capsulam meeting following elec- tion, and four extraordinary Board meetings. The Board meet- ings follow a recurring structure with defined main agenda items. Information materials and decision-making documents for Board meetings are usually distributed about one week before each meeting. A lawyer from law firm Setterwalls Advokatbyrå takes the minutes for the Board. Information is presented at all scheduled Board meetings on the company’s financial position and important events affecting its operations. Extraordinary Board meetings usually address acquisition and divestment matters as well as financing and incentive matters, and are held when such matters requiring a decision arise. 2025 was a year featuring acquisition, divestment, incentive and financing matters. Senior executives of Pamica Group partici- pated in Board meetings to present on specific matters. Evaluation of the Board The Board evaluates its work every year according to a struc- tured process in which Board members have the opportunity to express their views on its work methods and effectiveness, Board materials, the performance of Board members and the scope of its duties in order to develop the Board’s work struc- ture. For the 2025 financial year, the evaluation was carried out internally through an anonymous questionnaire that was com- pleted by Board members, and the results of the evaluation were presented by the Chairman and then discussed by the Board. In addition, the Chairman of the Nomination Committee, together with members of the Nomination Committee, held individual discussions with each Board member. The evaluation concluded that the Board is deemed to perform well. The Board’s Committees The Board has established an Audit Committee and a Remuner- ation Committee to structure, streamline and assure the quality of the work and prepare the Board’s decisions in these areas. The members of the Committees are appointed every year at the statutory Board meeting following election. The Audit Committee consists of three members: Lina Stolpe (Chairman), Jan Klippvik and Tomas Franzén. All of the mem- bers of the Audit Committee are considered to be independent in relation to the company and its management. Every year, the Audit Committee adopts an annual cycle of the duties and areas that fall under the Committee’s responsibility . The Audit Com- mittee shall, without affecting the Board’s responsibilities and tasks in general, among other things, monitor the company’s financial reporting, monitor the effectiveness of the company’s internal control and risk management, keep informed about the audit of the Annual Report and the consolidated financial state- ments, review and monitor the auditor’s impartiality and inde- pendence and in particular draw attention to whether the audi- tor provides the company with services other than audit services and assist in connection with the general meeting’s decision on the election of auditors. The work of the Audit Committee follows Pamica Group’s quarterly reporting and its work on val- uation issues and impairment testing. The Audit Committee held six minuted meetings. The company’s auditor attended three Audit Committee meetings in 2025. Pamica’s CFO takes the minutes for the Committee. Matters specifically addressed in 2025 were related to Pamica Group’s financial reporting, sus- tainability reporting, internal control and disputes. The CEO and CFO usually attend Committee meetings to present reports. The Chairman of the Committee is in regular contact with the company’s auditor. The Remuneration Committee consists of two members: Tomas Franzén (Chairman) and Johan Ryding. The Remunera- tion Committee is to prepare proposals regarding remuneration principles, remuneration and other employment conditions for senior executives. The Remuneration Committee is also tasked with reviewing and evaluating the company’s program for vari- able remuneration for senior executives, the application of the guidelines for remuneration for senior executives decided by the Annual General Meeting as well as the company’s current remu- neration structures and remuneration levels. The Remuneration Committee works according to the adopted rules of procedure. A review is normally carried out in early autumn to determine Attendance at meetings in 2025. Y ear elected Independent of the company Independent of major shareholders Total remuneration, TSEK1) Remuneration Committee meetings Audit Committee meetings Board meetings Tomas Franzén 2022 Yes Yes 620 2/2 5/6 9/9 Ulrika Saxon von Essen 2022 Yes Yes 250 - - 9/9 Johan Ryding 2022 Yes Yes 280 2/2 - 9/9 Jan Klippvik 2022 Yes Yes 7602) - 6/6 9/9 Lina Stolpe 2022 Yes Yes 350 - 6/6 9/9 Ulrika Valassi 2023 Yes Yes 250 - - 9/9 Total 2,510 1) Refers to fees for the General Meeting year 2024/2025. 2) In addition to Board fees, Jan Klippvik received remuneration for consulting services of TSEK 500 through the company JA Klippvik Konsulter AB. These services were provided on market terms. 14 Overview2025 Annual ReportPamica Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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whether there are any major remuneration-related matters in principle to prepare. If so, such matters are discussed before a final proposal is addressed at the scheduled meetings in Decem- ber and January . In 2025, the Remuneration Committee conduct- ed an in-depth evaluation of Pamica Group’s remuneration structures and incentive programs, which resulted in the Com- mittee submitting a proposal to the 2025 Annual General Meet- ing on a long-term incentive program in the form of a warrant program. Minor updates to the remuneration guidelines are pro- posed to the 2026 Annual General Meeting. The Remuneration Committee held two minuted meetings in 2025 and remained in regular contact between meetings. Johan Ryding takes the min- utes for the Committee. The Remuneration Committee provides regular verbal reports to the Board and submits proposals on matters requiring a Board decision. The minutes are made avail- able to all Board members. The CEO and other senior execu- tives usually attend Committee meetings to present reports on certain matters. Remuneration of Board members The 2025 Annual General Meeting resolved that remuneration of ordinary members of the Board be paid in the amount of SEK 250,000 per member per year. Rremuneration of the Chairman Board was to be paid in the amount of SEK 500,000 per year. In addition, it was resolved that the Chairman of the Audit Com- mittee be paid SEK 100,000 per year and other Committee members SEK 60,000 per year. It was resolved that the Chair- man of the Remuneration Committee be paid SEK 60,000 per year and other Committee members SEK 30,000 per year. Auditor The auditor of Pamica Group is elected every year by the Annu- al General Meeting. The Nomination Committee submits nomi- nations. The auditor’s task is to audit the company’s Annual Report and consolidated financial statements, the administra- tion of the Board and the CEO, the Sustainability Report and the corporate governance report on behalf of the shareholders. The audit activities and the auditor’s report are presented to the Annual General Meeting. At the 2025 Annual General Meeting, KPMG was elected the audit firm until the next Annual General Meeting. KPMG has appointed Jonas Eriksson as auditor in charge. It is proposed to the 2026 Annual General Meeting that KPMG be elected the audit firm until the next Annual General Meeting. Fees to the company’s auditor are paid according to a separate agreement, in accordance with the resolution of the Annual Gen- eral Meeting. For a specification of audit fees and expenses for other assignments, refer to Note 6 Fees and remuneration to audi- tors. Pamica Group’s policy for purchasing non-audit-related ser- vices is continuously monitored by the Audit Committee, which also evaluates the content of both audit and consulting services. Governance of Pamica Group Pamica’s operating model Pamica Group acquires and develops small and medium-sized companies together with successful entrepreneurs. Pamica’s operating model is based on decentralized governance of the operations, which means that day-to-day decision-making takes place by the companies, with limited involvement from Group management. The Group’s strategy and governance model are based on the vision of being the owner that every entrepreneur wants to work with. This is to be achieved by preserving the independence of the companies at the same time as the Group creates long-term conditions and provides support for change. Pamica has a flexible organization that enables rapid deci- sion-making. A decentralized governance model creates a high level of entrepreneurship in the businesses, enables a clear structure of accountability and helps Pamica to continue grow- ing with limited central resources. Pamica believes that decen- tralized leadership is a key success factor for a scalable business model featuring multiple portfolio companies operating in a variety of industries. Focusing intensely on local entrepreneur- ship creates the conditions for effective and well-informed deci- sions. Each portfolio company develops a vision and long-term strategy to ensure value creation throughout Pamica. The long- term strategy is set out in action plans and defined financial tar- gets that are continuously monitored. The financial targets for each portfolio company focus on value creation and include growth, EBITA margin and cash flow generation. Decentralized leadership means extensive responsibility and trust in the man- agement of the portfolio companies, both to deliver results and to serve as culture ambassadors embodying Pamica’s values. The achievement of targets is ensured by setting clear incentives and by providing career opportunities for Group employees. CEO and Group management The CEO is appointed by the Board and is responsible, together with the Group management, for the day-to-day operations of Pamica in accordance with the Board’s instructions. The CEO provides the Board with regular updates on the operations and ensures that the Board receives information to make well-found- ed decisions. Group management of Pamica Group consists of the CEO, Deputy CEO and Operational Director, CFO and Investment Manager. The role of Group management is to pre- pare and implement strategies, manage corporate governance and organizational issues, and monitor Pamica’s financial per- formance and sustainability . The companies’ financial perfor- mance and ongoing activities are discussed at monthly meetings. Pamica concentrates on maintaining a high level of profes- sional corporate governance within the Group so as to create the conditions for value creation in a decentralized business model. Group management governs, controls and monitors the Group’s operations, primarily by appointing the CEO and the Board. Group management then monitors developments, for example, through customary Board work and monthly report- ing from the portfolio companies. The Boards of the portfolio companies consist of one or more members of Group manage- ment and, where appropriate, external Board members. The Board meets according to a carefully planned calendar of meet- ings aimed at maximizing the long-term potential of the portfo- lio companies, while maintaining short-term profitability . At least four annual Board meetings that address a variety of topics are combined with monthly reports to follow up on strategic and financial targets. In addition to a well-established Board meeting calendar, Pamica has a structured performance moni- toring model in place for the entire Group. Monthly Board reports are supplemented with informal daily contact between Group management and the management teams of the company , continuous risk assessments of the portfolio companies and an annual evaluation of profitability , market outlook and long-term strategy . Pamica Group’s risk management process Pamica conducts an annual risk review whereby significant risks in its own operations and the portfolio companies are summarized and discussed by the management teams and Boards of each Pamica company . The aim of this process is to provide an overall understanding of Pamica’s main risks to the portfolio companies and Pamica’s management and Board. As part of good corporate governance, companies are expected to pursue a continuous process to identify , assess and manage their risks. The CEO and management team of each company have the operational responsibility for ensuring that an appropriate risk management process is in place and approved by the Board of each portfolio company . Pamica supports its portfolio compa- nies by providing structures and approaches for this work, and endeavors to continuously strengthen both its own and the portfolio companies’ risk processes. Pamica’s main risks are summarized in the Board of Directors’ Report on page 22. Internal control The Board of Pamica Group AB assumes overall responsibility for ensuring that Pamica has effective and adequate risk man- agement and internal control. The aim is to provide reasonable assurance that operations are conducted effectively and effi- ciently , that the external reporting is reliable and to ensure compliance with laws, internal regulations and policy docu- ments. This is achieved on the basis of structured Board work and by delegating duties to management, the Audit Committee and other employees. The Board of each portfolio company is responsible for ensuring that the relevant company complies with laws and regulations and for compliance with internal pol- icy documents, control frameworks and guidelines. A procedure has successively been implemented to enhance the monitoring of this. A self-assessment is conducted every year and reported to the Board of each portfolio company and to Pamica Group’s 15 Overview2025 Annual ReportPamica Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Auditor’s report on the corporate governance statement Audit Committee and Board. Pamica carries out annual inde- pendent monitoring and validation of self-assessments by the portfolio companies. In addition, dialog takes place with the Group’s auditors regarding their ongoing observations and their annual evalua- tion of the internal control, which is performed in the third quarter and reported to the Audit Committee. In view of the above, Pamica has decided, in line with last year’s decision, not to establish an internal audit function. Internal control over the financial reporting Internal control over the financial reporting is based on how Pamica’s operations are conducted and how the organization is structured. All companies report full financial statements and forecasts every month. Reporting takes place in a shared Group account- ing system. This reporting forms the basis of the Group’s con- solidated financial statements. Each individual company is responsible for financial management and for ensuring that financial statements are accurate, complete and delivered on time for Group reporting. The financial reporting is structured so that it complies with applicable laws and regulations such as IFRS. The companies’ application of IFRS in their reporting and how this relates to the policies selected by Pamica are moni- tored continuously . Pamica’s finance department has many su pporting instructions and documents intended to support the companies’ reporting in order to ensure the completeness and accuracy of the financial reporting. Ensuring the quality of the financial reporting The Board believes that the quality of a company’s financial reporting is primarily determined by the organization’s accounting expertise and the personnel and organization of the finance, accounting and treasury functions. Pamica’s finance department is involved in the portfolio companies’ reporting. This means that the quality of the accounting and reporting by the portfolio companies is continuously reviewed and devel- oped. Pamica evaluates the reporting from the portfolio compa- nies from an analytical standpoint in terms of its completeness and reasonableness, as well as compliance with Pamica’s accounting policies. Pamica’s finance department maintains an active dialog with each portfolio company . Any deviations iden- tified in the legal and operational monitoring are corrected. The developments and risks identified are communicated to the CEO and CFO every month, who in turn report to Pamica’s Board as appropriate. The portfolio companies submit monthly reports describing and analyzing the activities of the portfolio company and its performance. These reports are submitted to Pamica’s Group management and in certain cases to Pamica’s Board. The reports are supplemented with monthly meetings between the portfolio companies and Pamica’s Investment M anager where the reports are discussed and analyzed in order to gain an understanding of each portfolio company’s financial performance and follow-up of the operations. Accounting for acquisitions and divestments, as well as major transactions and accounting matters, are discussed and agreed with Pamica’s auditors on an ongoing basis. The Group consoli- dation process includes a number of reconciliation checks, both manual and automatic, for example, in the Group accounting system. Pamica’s finance department is organized and staffed based on the need to ensure that the Group maintains high accounting standards and complies with IFRS and other stan- dards in the field of accounting. The department’s duties include preparing the accounts, primarily for the Parent Company , and preparing the financial statements for both the Parent Company and the Group. Pamica’s finance department is led by Pamica’s CFO and employees have relevant professional experience in financial reporting and accounting. The Board, through the Audit Committee, monitors internal controls and the reliability of the financial reporting and evaluates recommendations for improvement. The Audit Committee submits proposals on mat- ters requiring a Board decision. To the general meeting of the shareholders in Pamica Group AB (publ), corporate identity number 559374-3643 Engagement and responsibility It is the board of directors who is responsible for the corporate governance statement for the year 2025 on pages 13 - 18 and that it has been prepared in accordance with the Annual Accounts Act. The scope of the audit Our examination has been conducted in accordance with FAR’s auditing standard RevR 16 The auditor’s examination of the cor- porate governance statement. This means that our examination of the corporate governance statement is different and substan- tially 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. Opinions A corporate governance statement has been prepared. Disclo- sures in accordance with chapter 6 section 6 the second para- graph points 2-6 the Annual Accounts Act and chapter 7 section 31 the second paragraph the same law are consistent with the annual accounts and the consolidated accounts and are in accor- dance with the Annual Accounts Act. Stockholm 17 April 2026 KPMG AB J onas Eriksson Authorized Public Accountant 16 Overview2025 Annual ReportPamica Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Board of Directors Tomas Franzén Chairman of the Board Board member since 2022. Born: 1962 Education and work experience: Education, Technical University of Linköping. Previously President and CEO of Bonnier AB, Com Hem AB, Eniro AB, Song Networks Holding AB and AU-System AB. Other significant assignments: Chairman of TietoEVRY Corporation, Elajo Invest AB, Dustin Group AB and Sappa Holding AB, among others. Board member of Axel Johnson AB, Hydroscand Group AB and Liljedahl Group AB, among others. Independent in relation to the company and its management/major shareholders. Ulrika Saxon von Essen Board member Board member since 2022. Born: 1966 Education and work experience: M.Sc. in Economics and Marketing, Stockholm School of Economics. Board professional, investor, advisor. Previ- ously founder and CEO of Bonnier V entures, previously CEO of Bonnier Growth Media, and Bonnier Magazines. Other significant assignments: Board member of Adlibris, Aura Group, Bonnier News Business, VO2 Capital. CEO & Secretary General of the Royal Tennis Club. Independent in relation to the company and its management/major shareholders. Johan Ryding Board member Board member since 2022. Born: 1979 Education and work experience: M.Sc. in Business and Economics, Gothenburg School of Business. C onsultant. advisor and entrepreneur. Previously MD of Euroflorist Scandina- via, founder and CEO of Sportamore AB (Publ). Other significant assignments: Chairman of Wesports Group AB and Board member of PaperShell AB. Independent in relation to the company and its management/major shareholders. Jan Klippvik Board member Board member since 2022. Born: 1963 Education and work experience: BA in Economics, Stockholm University . Previously financial planning and tax advisor at Catella Bank Filial, Carnegie Private Banking, HQ Private Banking, auditor and certified auditor of Ernst & Y oung. Other significant assignments: CEO of JA Klippvik Konsulter AB. Independent in relation to the company and its management/major shareholders. Lina Stolpe Board member Board member since 2022. Born: 1976 Education and work experience: Master’s degree in economics from Mitthögskolan. CFO Preem, former CFO Infranord and acting CEO Infranord, CEO Valmet Power and several leading finance positions within the Valmet Group and the HunterDouglas Group. Other significant assignments: Board member of Svevia AB. Independent in relation to the company and its management/major shareholders. Ulrika Valassi Board member Board member since 2023. Born: 1967 Education and work experience: Master of Business Administration from Uppsala University . Board member, consultant and advisor. Previously SEB, Landshypotek, entrepreneur in own company , DBT Capital. Other significant assignments: Board member of Ålandsbanken plc, Spårbanken Sjuhärad, SwedenCare, InsattGroup AB, Fastighetsbolaget Emilshus AB. Independent in relation to the company and its management/major shareholders. 17 Overview2025 Annual ReportPamica Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Management Jan-Olof Svensson CEO Born: 1960 Employed since: 2016 Professional experience: Jan-Olof founded Pamica in 2016 t ogether with Bengt Jönsson. From 2003 until Pamica was founded, he was a founding partner at IMAP Sweden where he successfully worked as a t ransaction advisor. Josa has experience as an accountant, CFO and from b usiness development within various organizations and industries. Education: Economics studies at Lund University 1984–1986 specializing in accounting and financing. Other significant assignments: N/A Joacim Lindoff Deputy CEO and Operational Director Born: 1973 Employed since: 2026 Professional experience: Joacim has an extensive industrial e xperience whose previous positions include CEO of the listed company Arjo 2017–2025 and Acting CEO, EVP Surgical Workflows and EVP Infection Control for Getinge 2014–2017. Education: Bachelor in Economics, Lund University 1995–1998. Other significant assignments: N/A Louise Ankarcrona CFO Born: 1978 Employed since: 2025 Professional experience: Louise was Finance Director BA Services at Storskogen Group 2021-2025, and during the period 2018–2021 CFO at Hemfrid. She has also held roles as Finance Manager and Head of Consult- ing at Infocare, as well as finance roles, mainly within business control, at Telia and Fujitsu. Education: Degree in economics at Lund University , 2000-2007 . Other significant assignments: N/A Mats Ulvtorp Investment Manager Born: 1963 Employed since: 2023 Professional experience: Mats has for many years been active in the construction & installation industry , both in Sweden and around the world, as CEO and in other executive positions. Starting in 2009, Mats worked for the French electrical wholesale group Rexel, where he was responsible for sales & operations in Sweden, Australia and England. Education: Economics and marketing from Halmstad University and IMD Business School, Lausanne. Other significant assignments: N/A 18 Overview2025 Annual ReportPamica Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Board of Directors Report Board of Directors’ Report Financial overview ............................................. 20 Risk and risk management ................................... 22 Sustainability Report ........................................... 23 ESRS 2 General disclosures ............................... 23 E1: Climate change .......................................... 30 E2: Pollution ................................................... 34 E5: Resource use and circular economy ............... 35 Disclosures under the EU Taxonomy Regulation ..... 37 S1: Pamica’s workforce ...................................... 39 S2: Workers in the value chain............................ 44 G1: Business conduct ....................................... 45 Appendices .................................................... 47 Corporate governance 19Overview2025 Annual ReportPamica Board of Directors’ Report Financial statements Other information Operations
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Financial overview Parent Company and Group The Board of Directors and CEO of Pamica Group AB (here inafter the “company”), with corporate registration number 559374 36 43 and registered office in Halmstad, Sweden, hereby submit the Annual Report and consolidated financial statements for 2025 financial year. The Group for which the company is the Parent Company is hereinafter referred to as the “Group” . About the operations The company’s operations primarily encompass owning and managing, directly or through Group companies, real and mov able property (including shares and other securities), providing Group w ide services (accounting and business development) to related companies and conducting operations compatible with this. The company has a long t erm ownership horizon with serious ambitions for growth – both organically and through add o n acquisitions and acquisitions of new portfolio companies. The Group acquires and develops small and mediumsi zed companies together with successful entrepreneurs, making them successful in the long term and creating value and prosperity . The Group is divided into three segments: Industry , S ervices, and Innovations. The companies within the Industry segment produce and sell customized solutions and systems, often devel oped in close collaboration with customers. The companies in segment Services are service companies with strong positions in specific niches. The Innovations segment comprises niche com panies with unique offerings and/or pa tents, characterized by clear scalability and international potential. The Group is centrally financed through the Parent Company’s own funds as well as borrowed capital from credit institutions and bond loans. Ownership The company is owned 14.8% by Pamica 3 AB, Corp. Reg. No. 559379 2 889, 12.4% by Pamica 4 AB, Corp. Reg. No. 559428 2 914, and 72.7% by coi nvestors. Pamica 3 AB and Pamica 4 AB represent indirect ownership from a number of underlying investors. No single shareholder directly or indirectly controls more than 10% of the shares. After the end of the financial year, Pamica 3 AB and Pamica 4 AB decided on a distribution in kind and redemption of shares, respectively , which means that the fund unit holders will become direct owners of the company . Significant events during the financial year During the year, Pamica Group divested all subsidiaries to Safe Solutions Consulting i Sverige Holding AB, the portfolio c ompany Logiwaste and all subsidiaries to V efi Holding AB. In the second quarter, the subsidiary Eskilstuna Dynamics Holding AB (EDAB) received a notice of arbitration from the SCC Arbitration Institute. The counterparty asserted that EDAB was obligated to pay MSEK 50 due to an alleged breach of contract related to the non pa yment of an earno ut. In the third quarter, EDAB entered into a settlement agreement and under this agreement EDAB paid an earn o ut of MSEK 12 and, in addition, any profit earned by EDAB for the 2025 financial year will be distributed equally between the parties. In the second quarter, Pamica Group AB announced that CFO Anders Maiqvist had resigned from his position. Louise Ankarcrona became the new CFO of Pamica Group from the fourth quarter. In the second quarter, Pamica Group AB signed an agreement with the related pa rty company Pamica 5 AB under which P amica Group sells management services to Pamica 5 and P amica Group has the option to acquire the subsidiaries in P amica 5 in the future. In the fourth quarter, Pamica Group acquired 100% of the shares in the operating companies HTSM Eskilstuna, ABC Karossen i Mönsterås and ALMA Electronics from Pamica 5 AB and seven minority shareholders. For more information, refer to Note 2 Business combinations. In the third quarter, Pamica Group’s Board resolved to make an impairment of acquisition r elated surpluses totaling MSEK 201.1. The impairment was attributable to the acquisitions of Delta of Sweden, EDAB and IM Vision. For further information on impairment of goodwill during the financial year, refer to Note 13 Intangible assets. In the fourth quarter, Pamica Group issued subsequent senior secured bonds of SEK 250,000,000 under the framework of its existing bonds 2024/2027 with ISIN SE0023440961, bringing the total outstanding amount under the SEK 2,000,000,000 framework to SEK 1,450,000,000 following the issuance. On November 26, Pamica Group’s secured bonds (ISIN SE0023440961), in a total amount of SEK 1,450,000,000, were admitted to trading on Nasdaq Stockholm’s list for corporate bonds. The Parent Company impaired participations in Group com panies by a total of MSEK 313.1; for more information, refer to Note 35 Group companies. Financial Performance The Group's earnings The Group’s net sales for 2025 amounted to MSEK 5,114.2 (4,534.9), representing an increase of 13%. Organic growth during the period amounted to MSEK 32.2 ( 1 1.1), corresponding to an organic net sales growth of 0.7% (0 .3). Acquired growth was primarily attributable to the Industry segment. Adjusted EBITA for 2025 amounted to MSEK 435.6 (340.8), corresponding to an adjusted EBITA margin of 8.5% (7.5). The growth was attributable to the Industry and Services segments. Adjusted EBITA for 2025 was adjusted for capital losses from the divestment of companies of MSEK −37.8, acquisition r elated items affecting comparability of MSEK –0.5 (–7.6) and other items affecting comparability of MSEK –82.6 (–57.5). Other items affecting comparability are primarily attributable to IPO preparations, reorganization and restructuring in the current year, and reorganization and restructuring as well as ongoing and concluded disputes in the comparative year. Operating profit (EBIT) for 2025 amounted to MSEK 29.7 (–141.7), corresponding to an EBIT margin of 0.6% (–3.1). EBIT includes an acquisition r elated surpluses impairment of MSEK –201.1 (–336.0) as well as items affecting comparability totaling MSEK –120.9 (–65.1). Cash flow and financial position Cash flow from operating activities during the year amounted to MSEK 436.7 (444.3). Changes in working capital had a positive contribution in the period of a total of MSEK 23.3 (173.6). As of December 31, 2025, the Group’s cash and unused credit facilities amounted to MSEK 562.1 (322.3). The leverage ratio, net debt/proforma adjusted EBITDA R12M, was 3.08x (3.30) on the balance sheet date. The lever age ratio declined mainly due to improved proforma adjusted EBITDA R12M. 20 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Group (amounts in MSEK) 2025 2024 Δ% Net sales1) 5,114.2 4,534.9 13% Organic net sales growth, % 0.7 -0.3 1.0 pp EBITA 314.7 275.7 14% Adjusted EBITA 435.6 340.8 28% Adjusted EBITA margin, % 8.5 7.5 1.0 pp Organic EBITA growth, % 9.7 -8.8 18.5 pp Operating profit/loss (EBIT1) 29.7 -141.7 121% EBIT margin, % 0.6 -3.1 3.9 pp Profit/loss after financial items1) -150.2 -180.3 17% Profit/loss for the period1) -162.2 -383.2 58% Diluted earnings per share, continuing operations1), SEK -1.89 -2.14 12% Return on capital employed2), % 9.2 6.3 2.8 pp Return on equity2), % -6.4 -15.2 19.8 pp Cash flow from operating activities1) 2) 436.7 444.3 -2% Net debt/adjusted EBITDA R12M, multiple 3.08 3.30 -0.22x Equity 1) 2,378.0 2,433.9 -2% Balance sheet total1) 6,221.5 6,313.9 -1% Number of employees 2,252 2,400 -6% 1) P ertains to financial metrics defined according to IFRS. Definitions and explanations of the use of alternative performance measures are presented on page 67, Definitions of alternative performance measures. 2) Includes discontinued operations. Parent Company (amounts in MSEK) 2025 2024 Net sales 33.6 32.4 Loss after financial items -355.9 -446.7 Equity 2,957.1 3,071.3 Balance sheet total 5,161.8 5,018.8 Equity ratio, % 57.4% 61.2% Significant events after the financial year No significant events occurred after the end of the financial year. Transactions with related parties and key employees All transactions with related parties took place at market terms. For more information, refer to Note 37 Related pa rty transactions. Expectations regarding future performance The company has a long t erm ownership horizon with serious ambitions for organic growth. Efforts will continue in 2026 to enhance efficiency in the Group’s companies in order to increase profitability and improve cash flows, combined with structural measures to reduce borrowing in the Group to a level that is lower than current levels. The structural changes are expected to involve both sales and acquisitions. Proposed appropriation of profit Parent Company The following amounts in SEK are at the disposal of the Annual General Meeting: 3,894,793,929 Retained earnings -672,047,643 Loss for the year -266,288,072 Total 2,956,458,214 Share premium reserve The Board of Directors proposes that these funds be a ppropriated as follows: To be carried forward 2,956,458,214 of which share premium reserve 3,894,793,929 Total 2,956,458,214 Statement of the Board of Directors on the proposed dividend The Board of Directors proposes that no dividend be paid for the 2025 financial year. The Group and the company’s earnings and financial position are otherwise present in the following financial statements with notes. 21 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Risk and risk management The Group’s operations are exposed to risks that could have an impact on the Group. The Group has a decentralized organiza tional model, which means that to a great extent the portfolio companies are responsible for independently conducting their operations. The decentralized organization places stringent demands on such aspects as financial reporting, corporate g overnance and internal control. Group management governs, controls and monitors the activities of the portfolio companies through Pamica’s representatives on the Board of each portfolio company . A selection of the risks that the Group has identified is presented below: Strategic risks Strategic risks are risks that could prevent the Group from achieving its vision and its goals, and are often associated with operating in specific industries. These include changes in the business cycle, structural changes, competition, acquisitions and strategies for growth. Political risks The company and its portfolio companies may be exposed to changes in geographical and political conditions – for example, the war in Ukraine and also political decisions in Sweden p ertaining to ROT and RUT deductions. Changes to tariffs between individual countries in different geographical markets also impact individual portfolio companies. Market risks There are risks attributable to the company’s acquisition and expansion strategy , specifically that access to and opportunities for successfully identifying and attracting entrepreneur compa nies of interest would be scarce, and that the Group operates in a competitive market. If the company cannot fulfill its acquisi tion strategy , this could mean negative consequences for confi dence in the company among both its portfolio companies and owners. Business risks Some of the company’s portfolio companies rely on large indi vidual customers and are therefore more exposed to the risk of loss of customers, which in turn could have a material impact on the company’s earnings and financial position. There are also risks attributable to changing trends and behaviors among customers as well as product sales, which could impact the e arnings and financial position of the portfolio companies and thereby those of the Group as well. The portfolio companies who experienced the greatest impact from negative changes in the business cycle are Solideq and Alfa. Operational risks Operational risks include risks associated with efficiency , i nternal procedures and activities, the use of resources and syst ems and the Group’s employees. Competence risks There is a risk that the company and its portfolio companies will not be able to retain certain key employees or senior e xecutives, or will not be able to recruit new qualified personnel in the future. The loss of key employees or senior executives, in combination with a failure to attract and retain qualified p ersonnel, could have a negative impact on the continuing o perations of the company and its portfolio companies, which over the long term could have a material impact on the Group’s operations. IT and procedural risks The company and its portfolio companies rely on diverse IT syst ems, and the procedures related to them, functioning in an unobstructed and uninterrupted manner in order to be able to efficiently carry out ordinary operations. There is a risk that the systems of the company and its portfolio companies could expe rience interruptions or disruptions – for example, as a result of hacking, break i ns, computer viruses, program errors or the human factor. The company and its portfolio companies are also subject to data protection laws and, despite security measures, there is a risk that the confidentiality of the data could be jeop ardized. This could entail increased costs for regulatory compli ance, claims for damages and fines, reduced competitiveness and lost business opportunities, primarily for the company’s portfolio companies, which in turn could have a material impact on the company’s earnings and financial position. Acquisition risks There are acquisition risks in the form of completed acquisitions proving to be incorrect or too costly . The risk that deficiencies will emerge in financial reporting or sustainability reporting during the integration process that will impact the Group’s reporting, which in turn will impact the Group’s earnings and financial position. Financial risks Financial risks include risks concerning the reliability of the company’s internal and external financial reporting, and finan cial risks such as interest rate risk, liquidity risk, credit risk and currency risk. Interest rate and currency risks The Group is exposed to market risks in the form of higher interest expenses and changes to exchange rates that are attrib utable primarily to the currency exposure that the company’s portfolio companies are subject to. Higher interest expenses could have a material negative impact on the Group’s earnings and financial position. Currency exposure is significant for individual portfolio companies, and could thus impact the Group’s earnings and financial position. Liquidity and financing risks The company relies on financing to conduct its operation. This financing assumes that the company and its portfolio companies comply with the financial covenants, such as level of leverage ratio, that are stipulated in loan agreements. There is a risk that the company’s portfolio companies will not achieve their finan cial targets as regards, for example, growth or profitability . This could have an impact on the Group’s earnings and financial position, as well as the Group’s key performance indicators, which in turn could make the company’s and portfolio compa nies’ financing difficult, impossible, or costly . Additional information on the Group’s financial risks and risk management is provided in Note 30 Financial risks and risk management. Disputes and regulatory compliance Regulatory compliance risks are risks of economic and legal consequences resulting from the company or the Group’s port folio companies becoming involved in disputes or not acting in accordance with laws, ordinances and regulations, which could have economic or legal consequences for the company and its portfolio companies. 22 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Sustainability Report BP-1. Gen eral basis for preparation of the Sustainability Report Pamica Group’s (“Pamica”) Sustainability Report has been prepared in accordance with the Swedish Annual Accounts Act and the EU Corporate Sustainability Reporting Directive (CSRD) and the delegated acts for the European Sustainability Reporting Standards (ESRS). The report is based on the Group’s double materiality assessment, which governs the content and boundaries of the report. The disclosures reflect the processes and principles that apply to financial and non-financial reporting within the Group (BP-1-5a). The consolidated Sustainability Report includes all portfolio companies that were part of Pamica during the 2025 financial year, except for the companies that were consolidated into the Group on December 31, and the companies that were divested during the year. Divested companies include V efi Holding AB, Logiwaste Holding AB and all subsidiaries to Safe Solutions Consulting Group i Sverige AB. To reflect the financial reporting, the divested companies and the companies consolidated into the Group are included in the Taxonomy reporting (BP-1-5b (i-ii)). The Sustainability Report covers Pamica’s material impacts, risks and opportunities both upstream and downstream in the value chain to the extent possible based on available data. The focal points are the stages of the value chain links that were identified as material in the double materiality assessment. Pamica does not have information on intellectual property , know-how or the results of innovation. Accordingly , Pamica has not made use of the option to omit a specific piece of information about impending developments or matters in the course of negotiation since this is not necessary . All information deemed material and permissible under the regulations is included in the report (BP-1-5c-e). BP-2. D isclosures in relation to specific circumstances Pamica applies the following time horizons in its sustainability reporting: • S hort-term: up to 1 year • M edium-term: 1–5 years • L ong-term: more than 5 years These horizons are consistently used in assessments of impacts, risks and opportunities, and in target and action planning (BP-2-9a). When direct data from suppliers or other parts of the value chain is unavailable, for example, in relation to climate and waste data, estimates based on secondary data are used. Pamica has not made indirect value chain estimates and thus cannot estimate the reliability of the data for the value chain. Data quality will increase in line with Pamica’s application of the standard and as the degree of maturity increases (BP-2-10a-d). Variations arise in the calculation outcomes for cer- tain data, such as Scope 1, 2 and 3 emissions data and supplier data, due to the maturity of the industries in which Pamica operates. Such potential variations are mainly attributable to reporting unfamiliarity and limited access to quality data. Any assumptions made are stated in connection with the presentation of the methodology for each metric. The datapoints are reported in a system at portfolio company level. The CFO or CEO of each portfolio company performs an initial validation. Subsequently , the data is validated by a third party and consolidated for approval by Pamica’s Group management (in addition to what is included in the statutory audit) (BP-2-11(I-II)). The 2025 Sustainability Report is Pamica’s first report prepared in accordance with the ESRS. The transition to the new reporting framework involves some changes to the structure, boundaries and presentation of the information compared with previous years. Changes in methodology , data sources or boundaries compared to previous years are explained when they affect comparability and are only made if data quality has improved or regulations have changed. It is stated in each section if comparative figures cannot be adjusted due to lack of historical data or changes to methodologies. Any differences between previously reported and revised figures are explained, including the reasons for such variances. (BP-2-13a-c). Since this is Pamica’s first ESRS-compliant report, there are no material errors from previous reporting periods in relation to the standard. However, waste data from 2024 was adjusted since a reporting error was identified and the amount of waste for 2024 is lower in this report compared with last year (BP-2-14). Pamica confirms that the following topical stan- dards are material (BP-2-17): • E SRS E1 Climate change • E SRS E2 Pollution • E SRS E5 Resource use and circular economy • E SRS S1 Own workforce • E SRS S2 Workers in the value chain • E SRS G1 Business conduct For ESRS S2, Pamica has chosen to make use of the phase-in provisions according to the EU Delegated Act. This means that ESRS S2 Workers in the value chain will be described in brief, see page 44. GOV-1. T he role of the administrative, management and supervisory bodies Pamica’s Board of Directors consists of six members, three men (50%) and three women (50%). The num- ber of non-executive Board members is zero and the Board has no employee representatives. Pamica’s Board possesses broad experience from leadership in international companies, entrepreneurship, finance, industry , telecom, media and tech businesses. All Board members have many years of experience in rel- evant sectors and geographical markets. Furthermore, 100% of the Board members are reported as indepen- dent in relation to the company , management and major shareholders (GOV-1-21). The Board is the highest decision-making body and is responsible for monitoring sustainability-related impacts, risks and opportunities. Operational respon- sibility is assigned to Group management under the CEO. Responsibility for sustainability-related risks and opportunities is integrated with the Board’s rules of procedure, the mandates of its Committees, and in the Group’s policies and guidelines, including the Code of Conduct, the Risk Management Policy and other governing documents. Management is respon- sible for implementing governance, risk management and internal controls, including sustainability-related processes. Monitoring takes place according to estab- lished structures for reporting to the Board. When sustainability-related responsibilities are delegated to other parties, the Board conducts oversight through memos and follow-ups. The Board receives memos from the responsible functions, as well as follow-ups on sustainability according to the Group-wide 23 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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governance model. Sustainability-related controls are integrated into existing internal control, risk man- agement and financial management processes, thus ensuring governance. The Board has decided on the current sustainability targets, and management fol- lows up these sustainability targets through memos and by monitoring indicators and evaluating the com- panies’ compliance with sustainability requirements (GOV-1-22). The Board and management ensure that the neces- sary sustainability expertise is in place through recruitment, training programs and access to external expertise. The Board has combined expertise in gov- ernance, risk management, sustainability , finance, industry and strategy . Where necessary , this expertise is supplemented by external sustainability advisors and specialists. Skills needs are linked to the material matters identified in Pamica’s materiality assessment. The Board and management use such skills to moni- tor sustainability risks and opportunities related to climate, occupational health and safety , human rights and business ethics (GOV-1-23). GOV-2. I nformation provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies The Board is regularly informed about sustainabili- ty-related impacts, risks and opportunities through reports from the CEO, management functions and Group-wide processes. Follow-up takes place accord- ing to an annual cycle and in connection with Board meetings. The Audit Committee oversees risk man- agement and internal control, while the Remunera- tion Committee monitors issues related to remunera- tion principles. Sustainability-related impacts, risks and opportunities are integrated into the work of the Board through various monitoring, in which sustain- ability is a key area. The Board uses this data for stra- tegic decisions, acquisitions and overall risk manage- ment. Company management is responsible for implementing and monitoring sustainability-related actions. The material topics from the double material- ity assessment, which the Board oversees, include cl imate impact and resource use, occupational health and safety and social conditions, business ethics, human rights, and the supply chain. These areas are monitored under the framework of the Group’s gover- nance model, the work of the Board and the responsi- bilities of the Committees. Risks and opportunities are regularly assessed in connection with the strategic planning (GOV-2-26). GOV-3. I ntegration of sustainability-related performance in incentive schemes Pamica Group AB has not integrated sustainability- r elated performance into its incentive schemes for the Board, Committees or management team (GOV-3-12). GOV-4. Statement on due diligence The Sustainability Report is structured to reflect the processes and governing documents used to identify , assess and manage impacts, risks and opportunities in Pamica’s own operations and in the value chain. Due diligence is integrated into the Group’s governance, policies and work processes and encompasses identi- fying and assessing risks and impacts, including human rights risks. This process also includes mea- sures to manage identified risks, following up such risks through the Group’s risk management proce- dures, and reporting and the possibility of raising concerns. Disclosures on these can be found in the sections on corporate governance, social sustainabili- ty , environmental responsibility and business con- duct, and this information serves as the basis for Pamica’s overall due diligence process under the ESRS and the Supplier Code (GOV-4-32). GOV-5. Risk management and internal controls over sustainability reporting Pamica’s risk management and internal control pro- cesses cover both the financial reporting and the sus- tainability reporting. These processes are monitored by the Board and the Audit Committee. Risk manage- ment is based on structured workflows and reporting procedures throughout the Group. The work includes risk identification, control activities, monitoring and reporting. Risk assessments follow the Group’s risk management process. The assessment is carried out by the management teams and functions of the portfolio companies and reported at the Group level. The Audit Committee ensures effectiveness. The main sustain- ability reporting risks are related to the coordination, consolidation and quality assurance of sustainability information in relation to Pamica’s Group structure. The risks are managed by applying internal control processes, including clear divisions of responsibility , common reporting guidelines, central coordination and quality controls at Group level. Sustainability data is compiled in a Group-wide system, with the portfolio companies themselves performing an initial validation of the data. A second third-party validation is subsequently performed, and the consolidated data is then approved by Pamica’s Group management. The results of the risk assessment and internal c ontrol are integrated into operational functions. Monitoring takes place according to the Group’s g overnance model, with sustainability defined as a mandatory area that the Boards of the portfolio com- panies are to report on. Pamica’s Board and Commit- tees receive regular sustainability reporting on risk management and internal control. The Audit Com- mittee monitors the effectiveness of the control sys- tems and reports to the Board as part of the regular governance and monitoring process. Follow-up takes place according to an annual cycle and established reporting cycles (GOV-5-36a-e). 24 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Pamica Group’s value chain and stakeholders SBM-1. Strategy , business model and value chain Pamica’s portfolio companies offer technology solu- tions, services and proprietary products in three s egments: Industry , Services, and Innovations. This offerings include customized industrial products, installation, maintenance and operation services, as well as innovative consumer and niche products with international markets. Pamica’s portfolio companies primarily operate in Sweden and the Nordic region, with international sales in Europe, North America and Asia. Customer groups consist of companies in the industrial, construction, service, public sector and consumer markets. Pamica has a total of 2,252 full- time equivalents. Pamica does not have operations related to products or services that are prohibited or regulated in a manner that restricts market access in the geographies served by the Group (SBM-1-40a(i-iv)). Pamica’s total net sales in 2025 amounted to MSEK 5,114 (SBM-1-40b). Pamica does not conduct any coal, oil or gas extraction or other fossil energy production (SBM-1-40d(i)). Pamica has Group-wide targets to reduce environmental impact, promote circular solu- tions and ensure inclusive workplaces in all compa- nies. The portfolio companies develop services and products that enhance resource efficiency , quality and value for customers, while integrating sustainability requirements into business development and supplier relationships. The products and services of the portfo- lio companies are assessed in terms of energy efficien- cy , quality , safety and reduced environmental impact, particularly for industrial products, services sales and the innovation segment. Sustainability is one of the areas included in Pamica’s strategy and is integrated through the Group’s governance model. The strategy is based on developing profitable and sustainable com- panies through active ownership, structured improve- ment programs, risk management, and shared policies and processes. In addition, the strategic elements are affected by the Environmental Policy (SBM-1-40e-g). Pamica’s operations are mainly relevant in the f ollowing ESRS sectors (SBM-1-41): • M anufacturing (Industry segment) • S ervices (Services segment) • C onsumer products and innovation-driven sectors (Innovations segment) Pamica is an active owner of small and medium-sized companies and applies a structured model of corporate governance under which the portfolio companies are developed through strategy , monitoring and expert support. The illustration below presents the activities and stakeholders in the Group’s upstream value chain, own operations and downstream value chain. (SBM-1-42-c) Workers Local communities Authorities Suppliers Investors Workers Local communities Authorities Suppliers Investors Workers Local communities Authorities Suppliers Investors Employees Local communities Authorities Suppliers Investors Workers Local communities Authorities Suppliers Investors Workers Local communities Authorities Suppliers Investors Customers Customers End-users Local communities Authorities Suppliers Investors Workers Local communities Authorities Suppliers Investors Customers Downstream value chainUpstream value chain Extraction of raw materials Production Logistics and transportation Logistics and transportation Logistics and transportation Reuse Recycling and waste Products and services Own operations Stakeholders Metals Minerals Wood Oil Rubber Salt Sand Electronics Components Vehicles Textiles Transport and storage of products and components Dessicants Electronics Products for play and physical activity Load carriers for trucks Fiber optics Shooting ranges Textile products Coffee and food External house care Communication Scaffolding Moving and relocation Broadband, TV and streaming Transportation of products and services Warehousing External transportation of products and services B2B and B2C customers Recycling, reuse and landfill of products Activities 25 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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SBM-3. Material impacts, risks and opportunities and their interaction with strategy and business model The double materiality assessment identified negative material impacts in: • C limate change (E1) • P ollution (E2) • R esource use and circular economy (E5) • O wn workforce (S1) • W orkers in the value chain (S2) • Bu siness conduct (G1) These were assessed and analyzed based on severity and likelihood. No positive impact was identified as material. The double materiality assessment identified ma terial financial risks in: • C limate change (E1) • R esource use and circular economy (E5) • O wn workforce (S1) • W orkers in the value chain (S2) These were assessed and analyzed based on magni- tude of the financial effect and likelihood. No finan- cial opportunities were identified as material. The material topics have been increasingly inte- grated into existing policies with an expected effect of enhanced sustainability governance in investments and decisions. The Group plans to further develop processes and training to satisfy these needs. Negative impacts mainly relate to risks to occupa- tional health and safety , workers further downstream in the value chain, climate impact through energy consumption and emissions, and risks associated with business conduct further downstream in the value chain. Identified negative impacts primarily arise through production, supplier relationships, working conditions and governance of the portfolio companies SBM-2. Interests and views of stakeholders Pamica conducts annual structured dialogs with inter- nal and external stakeholders as an integral part of the double materiality assessment. Internal stake- holders include representatives from the investment team as well as relevant support and control func- tions, including HR, logistics and procurement. External stakeholders include representatives from investors and other relevant business and market players. These groups are considered to be key stake- holders in relation to sustainability governance, risk management and business development. The dialogs are carried out in the form of semi-structured interviews following a common approach and led by an independent party . The pur- pose is to gather perspectives on business-critical su stainability risks and opportunities, governance and business ethics expectations, supply chain risks, and opportunities related to resource efficiency and circular business models. The results of the dialogs are integrated into the identification, analysis and validation stages of the double materiality assessment and are used to deter- mine and, if necessary , adjust assessments of impact and financial materiality . The stakeholders’ views thus form a basis for Pamica to prioritize material sustainability matters, and are taken into account in the Group’s governance model and strategic follow-up (SBM-2-45a). In 2025, Pamica’s stakeholders high- lighted the need for improved occupational health and safety , stricter governance and a continued focus on ethics, as well as greater control of the supply chain (SBM-2-45-b). The results of the materiality assessment and the views of stakeholders confirm the priorities in the Group’s sustainability governance. Activities to strengthen the Group’s policies and processes were adjusted based on these insights. The strategy is developed by integrating sustainability more tangibly into policies related to material topics in 2025. The changes enhance the Group’s ability to manage stake- holder expectations and sustainability risks. Planned steps include all portfolio companies adopting updat- ed policies, as well as continuing the work started on the transition plan. These actions are expected to pro- vide the portfolio companies with clearer sustainabil- ity governance (SBM-2-45c). The results from stakeholder dialogs and the mate- riality assessment are reported to the Board, Audit Committee and management as part of compliance with the CSRD. The information is used to validate material topics and ensure that strategic priorities and governance processes reflect stakeholder needs and expectations (SBM-2-45d). and are deemed to have a medium- and long-term time horizon. Pamica has not carried out a resilience analysis in relation to positive or negative impacts. The impacts are directly linked to Pamica’s busi- ness model as an active owner, with operational risks in the portfolio companies affecting the Group’s responsibilities and strategy . Sustainability topics are thus integrated into the governance model, risk man- agement and investment process. Climate and resource-related impacts are mainly long-term, while occupational health and safety and business conduct could potentially have immediate impacts. Suppli- er-related risks are assessed to be prevalent over the entire time horizon (SBM-3-48a-c). Material risks may affect the Group’s financial position through higher costs related to climate tran- sition, production disruptions, suppliers’ non-compli- ance with requirements, energy prices and the need for compliance measures. Although no material financial opportunities have been identified, there is potential to reduce costs through more efficient use of resources and enhancing competitiveness. Pamica is monitoring developments over time but expects that costs will increase in the short-term due to a need to strengthen data collection, for example, and as a result of energy price volatility . In the medium- and long-term, risks related to regulatory requirements, occupational health and safety , and the value chain may impact profitability and investment needs. Pamica’s work on sustainability is strengthened through systematic follow-up of sustainability topics in the portfolio companies, shared policies linked to sustainability and improved controls. The active own- ership model allows actions to be taken quickly and enables the Group to adapt to risks and opportunities. In turn, this increases resilience and reduces vulnera- bility to sustainability-related risks. Compared with prior periods, topics related to the value chain and resource efficiency were strengthened in the assess- ment (SBM-3-48d-g). 26 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Financial materiality Likelihood Almost certainMore likely than not E1.2 E5.1 Likely E1.1, E1.3 E5.2, E5.3 S1.1, S2.1 PotentialUnlikely Insignificant Mild Medium Extensive Significant Magnitude Material risks E1.1 Climate change Climate change adaptation E1.2 Climate change Climate change mitigation E1.3 Climate change Energy E5.1 Resource use and circular economy Resource inflows E5.2 Resource use and circular economy Resource outflows E5.3 Resource use and circular economy Waste S1.1 Own workforce Working conditions S2.1 Workers in the value chain Working conditions Impact materiality Likelihood Definite E1.2, E1.3 E2.1, E5.1 E5.2, E5.3 Almost certainMore likely than not S1.1, S1.2S 2.1, S2.2 S2.3, G1.6 LikelyPotentialUnlikely Very low Low Medium High Very high Severity Material negative impact E1.2 Climate change Climate change mitigation E1.3 Climate change Energy E2.1 Pollution Pollution of air E5.1 Resource use and circular economy Resource inflows E5.2 Resource use and circular economy Resource outflows E5.3 Resource use and circular economy Waste S1.1 Own workforce Working conditions S1.2 Own workforce Equal treatment and opportunities for all S2.1 Workers in the value chain Working conditions S2.2 Workers in the value chain Equal treatment and opportunities for all S2.3 Workers in the value chain Other work-related rights G1.6 Business conduct Corruption and bribery 27 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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1. F irstly , potential and actual positive and negative impacts, risks and opportunities are identified. 2. S econdly , negative impacts are assessed on the basis of their severity and likelihood, while positive impacts are assessed on the basis of their relative scale, scope and likelihood, even in cases where they are not considered material for reporting pur- poses. Financial risks and opportunities are assessed on the basis of their potential financial impact and likelihood. 3. T hirdly , the materiality threshold is determined by performing a combined assessment of these criteria. The severity of adverse impacts is assessed on the basis of scope, severity and irremediability , while likelihood refers to how likely it is that the impact will occur given the nature of the operations and the value chain. For human rights matters, particular emphasis was placed on potential severe impacts on individuals, in line with the ESRS and internationally recognized guidelines, which means that impacts with lower likelihood but high potential severity are also taken into account. The assessment focused on areas where the risk of negative impacts is deemed to be highest, including direct impacts from the operations of portfolio com- panies and indirect impacts through suppliers and business partners. These assessments were validated through semi-structured interviews with internal functions and external stakeholders and by applying method support from external experts. Material sustainability topics were prioritized by carrying out an overall assessment of severity , likeli- hood and financial relevance. Topics with the highest overall impact were identified as material and serve as the basis for the reporting scope. Financial risks and opportunities are assessed by conducting qualitative expert assessments of the potential impacts on costs, income, assets and busi- ness continuity related to, for example, supplier Topic Material sub-topic IRO Time horizon Upstream value chain Own operations Downstream value chain E1 Climate change Climate change adaptation R Short-, medium- and long-term ✓ Climate change mitigation N R Short-, medium- and long-term ✓ ✓ ✓ Energy N R Short-, medium- and long-term ✓ ✓ ✓ E2 Pollution Pollution of air N Long-term ✓ E5 Resource use and circular economy Resource inflows, including resource use N R Short-, medium- and long-term ✓ ✓ Resource outflows related to pr oducts and services N R Short-, medium- and long-term ✓ ✓ Waste N R Short-, medium- and long-term ✓ ✓ ✓ S1 Own workforce Working conditions N R Short-, medium- and long-term ✓ Equal treatment and opportunities for all N Short-, medium- and long-term ✓ S2 Workers in the value chain Working conditions N R Short-, medium- and long-term ✓ ✓ Equal treatment and opportunities for all N Short-, medium- and long-term ✓ ✓ Other work-related rights N Short-, medium- and long-term ✓ G1 Business conduct Corruption and bribery N Medium ✓ ✓ N Negative P Positive R Risk O Opportunity disruptions, incidents or changes in regulatory requirements. Quantitative estimates are used where reliable data is available, with the aim of identifying relative levels of risk. The double materiality assessment links impacts and dependencies in the value chain with financial risks and opportunities, and identifies areas for improvement where more efficient processes could reduce risks. Impacts and risks are classified as short-, medium- or long-term and include both direct and indirect effects. Sustainability-related risks are assessed and priori- tized in relation to other risk types under the frame- work of Pamica’s overall risk management process and are managed in parallel with operational, finan- cial and strategic risks. The assessment of business ethics risks includes criteria such as geographical exposure, type of business, sector and transaction structure. Decisions on priorities are made under the framework of the Group’s governance model, sup- ported by internal controls such as shared policies, the corporate governance model, incident reporting and regular monitoring. The Board receives summa- ries as a basis for further developing governance and monitoring (IRO-1-53). IRO-1. Description of the process to identify and assess material impacts, risks and opportunities Pamica has adopted a structured process for the dou- ble materiality assessment based on established meth- odologies to identify , assess and prioritize impacts, risks and opportunities related to people, the envi- ronment and the operations. The process encompass- es both Pamica’s own operations and the upstream and downstream value chain. The process includes mapping potential and actual positive and negative impacts, financial risks and opportunities, analyzing time horizons and geographical exposure, and gath- ering input from relevant stakeholders. The assess- ment is based on the sustainability topics that may give rise to material impacts on people, the environ- ment or the operations. The double materiality assessment was carried out in three main steps. 28 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Minimum disclosure requirement policies (MDR-P) Pamica has several steering documents that form the basis of the Group’s approach to sustainability and business conduct. The policies presented in the table are Group-wide and adopted by the Board. All of Pamica’s Group policies are revised annually to ensure that they remain up-to-date and adapted to changing conditions, both internal and external. Pamica con- tinuously evaluates its policies and processes to steadi- ly improve its responsibilities at Group and company level. The Group CEO assumes the ultimate responsi- bility for implementation and continuous evaluation, but operational responsibility has been delegated to the CEO of each company . The process for implemen- tation and evaluation may differ between companies. In addition to Pamica’s Group-wide policies, all portfolio companies have a company-specific employee handbook, which is not presented in the table. All Group-wide policies and company-specific governing documents are available on the intranet of each organization. Group-wide policies related to sustainability Relevant material topics Purpose and content Document owner Related international standards, declarations, laws and regulations Code of Conduct All The Code of Conduct is a fundamental document for corporate governance and for Pamica’s expectations of employees, the Board and partners in business situations. The Code explains responsible business conduct with respect for human rights, labor conditions, climate and environmental responsibility as well as business ethics. Everyone associated with Pamica is expected to comply with the Code of Conduct in their daily work and in their relationships with colleagues, suppliers and customers. CEO The UN Global Compact, the United Nations Convention against Corruption, the OECD Guidelines for Multinational Enterprises, the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and laws and regulations in countries where companies within the Group operate. Supplier Code All Pamica expects its suppliers and business partners to assume responsibility by taking measures to minimize negative impacts on people and the envi- ronment, as well as following international guidelines on human rights, labor, climate, environment and business ethics. CEO The UN Global Compact, the United Nations Convention against Corruption, the OECD Guidelines for Multinational Enterprises, the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and laws and regulations in countries where suppliers and business partners operate. Environmental Policy E1 Climate change, E2 Pollution and E5 Resource use and circular economy Pamica’s Environmental Policy is a central part of Pamica’s sustainability governance and aims to reduce its environmental impact and emissions. The Group is to conduct systematic environmental processes and apply the precautionary principle in all business decisions that may have a negative environmental impact. CEO The UN Global Compact, the United Nations Convention against Corruption, the OECD Guidelines for Multinational Enterprises, the Rio Declaration on Environment and Develop- ment, and laws and regulations in countries where Group companies operate. Anti-corruption Policy G1 Business conduct The Anti-Corruption Policy prohibits any form of bribery, irregularities or inappropriate payments to ensure an ethical business environment. The policy applies to all employees within the Group, including Board members and insourced personnel. CEO The UN Global Compact, the United Nations Convention against Corruption, the OECD Guidelines for Multinational Enterprises, and laws and regulations in countries where Group companies operate. Global Trade Compliance Policy G1 Business conduct Pamica has a Global Trade Compliance Policy for the entire Group that ensures that all international trade complies with sanctions, export controls and customs regulations based on defined procedures for screening, risk assessment and approval before establishing business relationships. CFO UN sanctions regimes, the WTO trade and customs frame- work, and national and international laws on trade, sanctions, export controls, and customs legislation. Insider Policy G1 Business conduct Pamica has an Insider Policy that regulates how inside information is man- aged to prevent insider trading and market manipulation through clear trad- ing prohibitions, reporting requirements and confidentiality procedures for insiders. Accordingly, the Policy applies to individuals employed by the Group, and to individuals who perform certain assignments for the Group. Board of Pamica Group AB Laws and regulations on securities trading adopted in Sweden and the EU, including the EU Market Abuse Regulation (MAR). Internal Control Policy G1 Business conduct Pamica has an Internal Control Policy that establishes a Group-wide framework for risk assessment, control activities and monitoring to ensure effective governance, reliable reporting and regulatory compliance. CFO Swedish Corporate Governance Code, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control—Integrated Framework, and laws and regulations in countries where where companies within the Group operate. Related Party Transaction Policy G1 Business conduct Pamica has a Group-wide Related Party Transaction Policy that ensures that transactions with related parties are identified, approved and carried out on market terms so as to prevent conflicts of interest and maintain financial transparency. CEO Laws and regulations on related party transactions adopted in Sweden and the EU, including the EU Market Abuse Regula- tion (MAR), the Swedish Companies Act and IAS 24. Risk Management Policy All The Policy describes the division of responsibilities regarding risk manage- ment, both at Group and at portfolio company level, and the overall risk management process. CFO Laws and regulations in countries where where companies within the Group operate. Whistleblowing Policy G1 Business conduct Pamica has a Whistleblowing Policy that ensures that serious irregularities can be reported securely and confidentially via an independent channel and also describes how cases are to be investigated and how whistleblowers are protected from retaliation. CFO Laws and regulations on whistleblowing adopted in Sweden and the EU, including the Swedish Whistleblower Act and the EU Whistleblower Directive. (MDR-P-65a-f) IRO-2. Disclosure requirements in ESRS covered by the undertaking’s sustainability report What is considered material information was decided based on Pamica’s double materiality assessment pro- cess, including stakeholder dialogs. The outcome of the materiality assessment determined which ESRS are applicable and which information was to be included in the Report. The disclosures included in the Report were thus deemed material in order to reflect Pamica’s material impacts, risks and opportu- nities, and/or are relevant information from a stake- holder perspective (IRO-2-59). Refer also to Pamica’s ESRS index on page 47 and the table of datapoints derived from other EU legislation on pages 48-51. 29 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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E1-1. Transition plan During the past year, Pamica commencedthe develop- ment of a transition plan for Scope 1 and Scope 2 emissions, which will be finalized in 2026 (E1-1-17). Based on the Group’s types of operations and the exclusion criteria stipulated in the EU Paris-aligned Benchmarks, P amica is not considered to be excluded from this (E1-1-16g). Disclosure requirements related to ESRS 2, SBM-3. Material impacts, risks and opportunities and their interaction with strategy and business model Pamica is impacted by climate change in different ways in its own operations and the value chain. In terms of climate change adaptation, risks are related to, for example, climate-sensitive raw materials, pro- duction or dependence on supply chains in cli- mate-sensitive regions. However, no immediate or significant risks were identified that require changes to the Group’s strategy or business model at the cur- rent time. However, in the longer term, risks may increase, particularly for companies with physical infrastructure or dependencies on suppliers in cli- mate-sensitive regions. The diversified operations of the Group rely on a range of inputs and resources with varying carbon footprints. Some of these have a higher impact than others, such as plastics, textiles, electronics and met- als. Overall, this dependency means that Pamica has a negative impact in relation to climate change miti- gation since the portfolio companies and their value chains contribute to GHG emissions. In turn, this may have financial effects in relation to stricter r egulatory requirements, capital market expectations, E1. Climate change and customers’ climate targets and preferences. Therefore, Pamica continuously seeks to enhance its emission reduction measures, develop more resource-efficient processes and integrate climate performance into its strategic decision-making and business models. Energy consumption is central to the entire value chain since all stages depend on energy in some form. This in turn contributes to a negative impact from the Group, particularly in the upstream value chain as many suppliers are located in countries that mainly have fossil-based energy and where several inputs and resources are energy-intensive to produce. Ener- gy dependence across the value chain may result in increased costs and investment requirements for sup- pliers, and these costs may be passed on in the value chain and impact Pamica financially . Taking this into account, Pamica is exposed to both physical climate risks and transition risks, which include weather events such as storms, flooding and forest fires that are increasing in frequency and inten- sity due to climate change. To date, physical climate risks tend to mainly impact the upstream value chain, but they are likely to affect the entire value chain in the long term. Transition risks, which include regula- tory , technological and market changes, already impact Pamica’s entire value chain. For example, reg- ulatory requirements have increased, and some cus- tomer groups have started to set higher sustainability requirements (E1-SBM-3-18). The assessment of climate-related risks and oppor- tunities has currently been performed at an overall level and is mainly based on the geographical condi- tions of the portfolio companies. Pamica has not yet carried out scenario-based analyses for different emission pathways or transition time horizons (short-, medium- and long-term). As a result, specific assets, business units or revenue streams have not been systematically assessed for their exposure to transition risks or physical climate risks. potential impact of such events on the Group’s assets and business activities (E1-IRO-1-20a-c). Furthermore, Pamica has not yet conducted sys- tematic mapping of chronic or acute climate risks in relation to assets, business units or the supply chain. Thus, short-, medium- and long-term time horizons are not defined in relation to physical climate risks. Nor are such definitions linked to the expected life- time of the assets, strategic planning horizons or cap- ital allocation plans (E1-IRO-1-AR11a-d). Pamica has not conducted climate-related scenario analyses for either physical climate risks or transition-related cli- mate risks (E1-IRO-1-21). As part of the double materiality assessment, t ransition events such as higher carbon prices, increased regulation to reduce GHG emissions and changing customer demands were taken into account at an overall level. However, no detailed analysis was carried out to examine how the Group’s assets and business activities may be exposed to these risks in the short, medium and long term. This means that the time horizon, likelihood, magnitude and duration in relation to transition risks are not defined per risk. Pamica has also not identified assets or business activities that are incompatible with, or need signifi- cant efforts to be compatible with a transition to a cl imate-neutral economy (E1-IRO-1-AR12a-d). Since climate scenarios have not yet been applied in r elation to Pamica’s financial planning, no compari- son or adjustment between climate assumptions and economic assumptions was performed (E1-IRO-1- AR15). In 2026, Pamica will evaluate the Group’s needs in relation to a climate scenario analysis and the timeline within which such an analysis should be prepared. Given the Group’s decentralized business model, the operational responsibility for in-depth analysis lies with the portfolio companies, which are encouraged to identify and assess how relevant climate-related risks and opportunities could impact their operations, assets and business strategies. These local assess- ments provide an important basis for the Group’s overall risk management and strategic priorities. Going forward, Pamica intends to evaluate the need for a more comprehensive scenario-based analysis at Group level to provide a better understanding of how climate-related risks and transition events could impact the business model, long-term strategy and financial resilience of the Group (E1-SBM-3-19). Disclosure requirements related to ESRS 2, IRO-1. Description of the processes to identify and assess material climate-related impacts, risks and opportunities Pamica’s impact on and financial risks and opportuni- ties related to climate change were identified and a nalyzed as part of the double materiality assessment process. This was done by mapping Pamica’s value chain to identify potential and actual impacts in rela- tion to GHG emissions, energy consumption and cli- mate change adaptation, and the financial risks or opportunities that these sub-topics entail. This assessment considered climate-related risks at an overall level, both upstream and downstream in the value chain, but does not include high-emission cli- mate scenarios or detailed analysis of how the Group’s assets and business activities may be exposed to (or are sensitive to) climate-related risks. More- over, the assessment does not include a detailed anal- ysis of climate-related transition events or the 30 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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E1-2. Policies related to climate change mitigation and adaptation One of Pamica’s Group policies is the Environmental Policy . This Policy is established at Group level, approved by the Board and reviewed every year. It is subsequently the responsibility of the CEO of each portfolio company to ensure that the Policy and any updates are implemented throughout the operations. The Environmental Policy outlines Pamica’s approach to systematic and continuous environmen- tal activities aimed at reducing the Group’s environ- mental impact. The Policy applies to all companies in Pamica and sets a minimum level for environmental activities and environmental requirements within the Group, but also provides scope for each portfolio company to add their own company-specific areas and/or requirements. Climate change, pollution, waste management, resource efficiency and biodiversity are the main areas governed by the Group’s Environmental Policy . The policy requires everyone at Pamica to apply the precautionary principle in all business decisions that could have a negative environmental impact, and to use the substitution principle to move toward more resource-efficient technologies and more environ- mentally friendly substances. More specifically , the Group’s Environmental Policy also requires that all companies reduce their emissions, identify climate risks, improve their energy efficiency and choose renewable sources. Furthermore, the Environmental Policy requires structured collection of climate and environmental data at Pamica, which also includes a certain amount of data from the value chain. Even where data is unavailable, Pamica undertakes to map, evaluate and continuously improve the Group’s environmental activities so as to reduce its negative impact. Pamica Group AB maintains continuous dialog Actions and resources in relation to climate change mitigation and adaptation (MDR-A) During the reporting year, Pamica commenced work on preparing a Group-wide transition plan related to climate change mitigation and adaptation. This work is at an early stage and no specific measures or action plans have yet been identified or implemented. In addition to this work, Pamica’s Environmental Policy was updated to more clearly integrate climate-related ambitions and responsibilities. The transition plan is expected to be completed and presented in future sus- tainability reporting. Since this is Pamica’s first year of reporting under the CSRD, there are no previous formal action plans or follow-ups of climate-related measures. Progress will be monitored and reported in future reporting periods (MDR-A-68). For this financial year, Pamica is unable to report current or future OpEx or CapEx related to action plans. These KPIs are not currently monitored due to the Group’s decentralized structure (MDR-A-69). E1-3. Actions and resources in relation to climate change policies During the year, Pamica focused on aligning its pro- cesses and procedures with the CSRD and ESRS, which included updating the double materiality assessment and sustainability-related governing doc- uments. In addition, Pamica focused on strengthen- ing its processes for collecting sustainability data, which involved assessing and clarifying several defi- nitions, reviewing previously collected data to identi- fy areas for improvement and communicating this to the portfolio companies. Furthermore, several data-related sessions were arranged to prepare for this year’s collection process, with the matters dis- cussed including all datapoints, requests to suppliers, documentation and traceability. Due to Pamica’s decentralized model, different types of company-specific measures are in place to reduce impacts. For example, several of the vehicle- heavy portfolio companies invested in fleet modern- ization in 2025, adding electric and hybrid vehicles. Emission reduction in the supply chain will be addressed in the Group-wide supplier program that is currently being developed. The transition plan and supplier program will be finalized and implemented in 2026 (E1-3-29a-b). with owners and investors, while portfolio companies enjoy good relationships with their customers. It is through these relationships that the views of these stakeholders are taken into account in the Group’s efforts to reduce its environmental impact (E1-2-25). Since negative impacts on the environment and cli- mate arise in the value chain, the Group’s Supplier Code requires Pamica’s suppliers to take responsibili- ty and minimize these impacts. The Environmental Policy is also summarized in the Group’s Code of Conduct, see the overview of Pamica’s policies on page 29. Tracking effectiveness of policies and actions through targets (MDR- T) Group-wide targets for reducing emissions were established in line with Pamica’s Environmental Policy . Given Pamica’s business model, the targets are based on reducing carbon emissions (CO 2eq) in relation to sales or “intensity targets. ” The targets encompass the entire Group for Scope 1 and 2, and are presented on the following page. The base year for the Scope 1 and 2 emission targets is 2024 and data is presented in table on page 33. The base year for Scope 3 will be based on data from 2026 since work must still be performed to improve the quality and coverage according to the mapping of applicable Scope 3 categories for the Group. Targets for Scope 3 emissions will also be evaluated when a base year is set for these emissions. Pamica’s previously communicated target for Scope 3 emissions will thus be revised and adopted again when the new base year is determined. The Scope 1 and 2 emission reduction target applies from the base year and for the next ten years, and is based on gross values converted into intensity to best reflect Pamica’s role as an ownership company where companies can be bought and sold over time. At present, the Scope 1 and 2 target has not been specified in terms of reduction by Scope. Pamica does not currently have a target for 2030. The underlying reason is that Pamica’s degree of maturity regarding sustainability has not previously been high enough to set a relevant target in time. The target that has been set extends to 2034 (see next page). Pamica’s priority has been to determine targets, and it has therefore not been able to first measure data and then set an adjusted base year for a period of several years. The base year 2024 (for Scope 1 and 2) has thus not taken into account potential annual deviations such as high energy consumption due to, for example, cold winters or similar events. The targets are broken down from 31 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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the Group level to the portfolio company level but no formal interim targets have been adopted. Pamica does not currently intend to introduce targets measured in absolute values. Since the process of preparing the transition plan is ongoing, Pamica has not yet identified the levers that will be vital to achieving the set targets. Pamica calculates emissions and follows up on targets according to the GHG Protocol Corporate Standard. The methodology is being continuously developed to improve data quality and include more emission categories over time. The emission targets have not been validated by the Science Based Targets initiative (SBTi) but are inspired by the SBTi methodology to align with the 1.5°C scenario. However, no formal review or approval has been carried out. The main reason is that the SBTi structure is difficult to apply to companies that have a high acquisition rate. The targets were developed by Pamica’s Group management and were approved by the Board. External stakeholders were not involved in the process of setting the climate target (MDR- T -80a-j). Pamica’s Scope 1 and Scope 2 emissions decreased in 2025 compared with the base year 2024. In Scope 1, this was mainly due to a reduction in the use of fossil fuels in vehicles. The reduction in Scope 2 emissions was largely due to the update of the emission factors for energy consumption in the databases used by Pamica to better represent reality . Total energy consumption in the Group has been reduced and the share of energy from nuclear power has increased, which also contributes to lower emissions. Scope 3 emissions increased due to improved data quality and coverage. E1-4. Targets related to climate change mitigation and adaptation Pamica has adopted Group-wide targets for reducing the Group’s GHG emissions, which are presented in bullet points below. Work currently focuses on gradu- ally improving data collection, monitoring emissions in the Group and, together with the portfolio compa- nies, identifying actions that can help reduce emis- sions. These identified areas will form the basis for further developing the Group’s transition activities (E1-4-34a-b). Pamica’s Group target • W ithin ten years (base year 2024), Pamica will halve its CO2eq emissions relative to net sales in Scope 1 and Scope 2 (market-based). Targets for Pamica’s portfolio companies • R educe CO2eq emissions by at least 7% annually in relation to net sales in Scope 1 and Scope 2.1) • P ortfolio companies have a base year for Scope 3 based on emissions for FY 2026.2) The targets are based on the same GHGs included in Pamica’s reporting and converted to carbon dioxide equivalents (CO 2eq). These are CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3. 1) Ne w portfolio acquisitions shall set the base year as the first full financial year as part of Pamica Group. 2) Ne w portfolio acquisitions shall set the base year as the second full financial year as part of Pamica Group. E1-5. Energy consumption and mix Energy consumption and mix 2024 2025 % change Fossil energy Total fossil energy consumption (MWh) 15,006.4 12,613.5 -15.9% Share of fossil sources in total energy consumption (%) 44.5% 48% Nu clear power Consumption from nuclear sources (MWh) 1,014.2 1,792.0 76.7% Share of consumption from nuclear sources in total energy consumption (%) 3% 7% Renewable energy Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh) 7,095.5 2,265.7 -68.1% Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 10,619.0 9,651.5 -9.1% Consumption of self-generated non-fuel renewable energy (MWh) 0 197.8 Total renewable energy consumption (MWh) 17,714.5 12,115.0 -31.6% Share of renewable sources in total energy consumption (%) 52.5% 46% Total energy Total energy consumption (MWh) 3 3,7 35.1 26,520.6 -21.3% Pamica Group AB does not have operations in shigh climate impact sectors, but some of the Group’s portfolio companies operate in such sectors. However, as no combustion of coal or coal products takes place, no further breakdown of energy reporting is considered necessary. (E1-5-37), (E1-5-38), (E1-5-39) 32 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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E1-6. Gross Scopes 1, 2, 3 and Total GHG emissions Data for Scope 1 and 2 are considered complete with minimal estimates, but some companies have, for example, estimated energy consumption for some smaller offices, or a smaller proportion of fuel con- sumption. Such estimates have been based on actual data from the remaining part of the portfolio compa- nies' operations. The various Scope 3 categories were calculated as follows: • 3 .1 Purchased goods and services (incl. cloud com- puting): emissions were primarily calculated using activity data in the form of quantities of goods and services purchased for the companies’ largest pur- chasing categories. In certain cases, the companies needed to estimate quantities based on spend and in several cases estimates were made for less mate- rial categories. • 3 .2 Capital goods: emissions include both leases and investments, with emissions from leases esti- mated based on spend. Emissions for investments were calculated using activity data, meaning the amount and number of products. • 3 .3 Fuel and energy-related activities (not included in Scope 1 or Scope 2): emissions are calculated based on energy consumption of fuels and pur- chased energy (under Scope 1 and 2) and the aver- age emission factor for Scope 3.3 for the energy source and country . • 3 .4 Upstream transportation and distribution: emission calculations were partly based on actual data from transport providers, and in certain cases on estimates. • 3 .5 Waste generated in operations: emissions were largely calculated using activity data from waste management providers, and in certain cases esti- mates were used. • 3 .6 Business travel: emissions were calculated using E1-8. Internal carbon pricing Pamica does not apply internal carbon pricing (E1-8-62). GHG emissions 2024 (base year) 2025 % change Scope 1 GHG emissions Gross Scope 1 GHG emissions (tCO₂eq) 2,849.4 2,486.8 -12.7% Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) 0 0 +/-0 Scope 2 GHG emissions Gross location-based Scope 2 GHG emissions (tCO2eq) 2,215.3 435.9 -80.3% Gross market-based Scope 2 GHG emissions (tCO2eq) 1,571.6 570.2 -63.7% Significant Scope 3 GHG emissions Total gross indirect (Scope 3) GHG emissions (tCO₂eq) 13,241.1 41,687.1 214.8% 1 Purchased goods and services 5,498.9 31,067.4 465.0% Sub-category: Cloud computing 0 189 +/-0 2 Capital goods 99.5 759.5 663.6% 3 Fuel and energy-related activities (not included in Scope 1 or Scope 2) 1,349.7 923.9 -31.5% 4 Upstream transportation and distribution 641.9 5,002.3 679.3% 5 Waste generated in operations 139.5 432.4 210.0% 6 Business travel 729.2 729.2 0.0% 7 Employee commuting 842 830.8 -1.3% 9 Downstream transportation 3,940.6 1,752.7 -55.5% Total GHG emissions Total GHG emissions (location-based) (tCO₂eq) 18,215.9 44,609.8 144.9% Total GHG emissions (market-based) (tCO₂eq) 17 ,662.2 44,744.1 153.3% (E1-6-44), (E1-6-50), (E1-6-48), (E1-6-49), (E1-6-51) a combination of actual data from suppliers and activity data, with some data estimated. • 3 .7 Employee commuting: emissions from commut- ing were estimated based on the number of employ- ees per country , the average number of working days per year, the estimated share of remote working and the share of office spaces in urban areas. • 3 .9: Downstream transportation: emissions were largely estimated based on average distances, num- ber of journeys and mode of transport. This emission category is not applicable to all portfolio companies. Scope 1 and 2 emissions declined for the year. In Scope 1, this was mainly due to a reduction in the use of fossil fuels in vehicles. The reduction in Scope 2 emis- sions was mainly attributable to the update of the emission factors for energy consumption in the databases used by Pamica. Total energy consump- tion in the Group has fallen and the share of energy from nuclear power has increased, which also con- tributes to lower emissions. Emissions in several Scope 3 categories increased in 2025, primarily due to an improved collection process that has increased data coverage and quality . This was particularly evi- dent for category 3.1, where efforts were made to include a higher share of the Group’s purchases. Emissions in category 3.2 increased, mainly due to a change in the methodology to include emissions from vehicle and building leases in the 2025 calcula- tions. Emissions in category 3.3 declined, primarily as a result of a decrease in total energy consumption throughout the Group, which means that emissions related to the generation of energy in the value chain are decreasing. Emissions from downstream trans- portation also declined since data verification was strengthened, with some data previously reported as downstream being transferred to upstream. This in turn led to an increase in emissions for upstream transportation. The emission factors used derive from the Depart- ment for Environment, Food & Rural Affairs (DEFRA), International Energy Agency (IEA), Asso- ciation of Issuing Bodies (AIB), Swedenergy , EPD International, Furniture Industry Research Associa- tion, Apple, HP , Carbonfact, and the U.S. Environ- mental Protection Agency (EPA (MDR-M-77)). Emissions intensity 2024 2025 Emissions in Scope 1 and 21) (tCO2eq) 4232.3 3057.1 Sales, MSEK2) 4534.9 5114.2 Emissions intensity (tCO2eq/ MSEK) 0.9 0.6 1) Mark et-based Scope 2 GHG emissions. 2) Sales adjusted, read more under Note 1 Significant accounting policies 33 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Disclosure requirements related to ESRS 2, IRO-1. Description of the processes to identify and assess material pollution-related impacts, risks and opportunities Pamica’s impact on and financial risks and opportuni- ties related to pollution were identified and analyzed as part of the double materiality assessment process. This was done by mapping Pamica’s value chain to identify potential and actual impacts in relation to pollution of water, air, soil, living organisms and food resources, and impacts related to microplastics and substances of concern (including substances of very high concern), and the financial risks or opportuni- ties that these sub-topics entail. The assessment is qualitative and based on the Group’s different types of operations and business models, as well as identified dependencies in the val- ue chain. The result of the assessment shows that the sub-topic deemed to be material relates to impacts in the upstream value chain, mainly in relation to air pollutants generated during the production of compo- nents and products in the supply chain. At Group lev- el, no material impacts, risks or opportunities in rela- tion to pollution were identified in Pamica’s own operations or downstream in the value chain. Howev- er, one of the portfolio companies is subject to a noti- fication requirement under the Swedish Environmen- tal Code since there is a risk of pollution of nearby areas and water in the manufacture of swap boxes and bodies, and in the painting of these. The outcome of the double materiality assessment was verified with stakeholders, but no separate or external consulta- tions with a specific focus on pollution were carried out (E2-IRO-1-11a-b). Pamica is unable to provide a list of locations in the value chain where pollution of air is a significant problem, other than being upstream in the value E2-1. Policies related to pollution Pamica’s Group-wide Environmental Policy also encompasses managing pollution. Pamica is commit- ted to identifying, evaluating and continuously mini- mizing pollution of water, air and soil from its opera- tions. The Group-wide Environmental Policy does not list specific substances for emissions to water, air and soil. Environmental permits are to be regularly checked wherever the risk of pollution of water, air and soil has been deemed to be significant. Current preventive actions are to be monitored and evaluated to ensure that they are achieving the planned results, and any shortcomings identified are assessed to deter- mine how to correct them. Monitoring and evaluation are also to be carried out when a pollution incident occurs. These procedures are to be implemented with the aim of preventing emissions and reducing the risk of accidents. Chemicals and hazardous substances are to be eliminated wherever possible or kept to an absolute minimum. When chemical or hazardous substances are used, the parties involved, including suppliers, must ensure that the substances are handled, stored and disposed of safely . Procedures must also be in place to conduct regular monitoring to ensure that this is performed properly . All operations in the Group that are exposed to the risk of pollution are to appoint a responsible person to ensure that the above procedures and controls are carried out when a signif- icant risk is identified. In cases where the risk for a supplier is considered significant, Pamica is to ensure that the supplier has appointed a person responsible. Actions and resources in relation to pollution (MDR-A) Several of the portfolio companies are pursuing i nitiatives intended to reduce pollution, for example, through energy and vehicle-related investments. Apart from the actions linked to the commitments stated in the Group’s policies (see section 2.1 above), Pamica as a Group has not identified or implemented any specific action for reducing pollution or dedicated resources for this at Group level. Since Pamica’s material impact regarding pollution relates to pollu- tion of air in the value chain, it will be integrated into the development and implementation of a supplier program in 2026 (MDR-A-62). E2. Pollution Disclosures to be reported if the undertaking has not set any measurable outcome-oriented targets (MDR- T) Pamica has not set any targets or processes related to pollution. There are also no plans to adopt any such targets since these impacts arise in the value chain and are thus difficult to monitor with measurable, outcome-oriented and time-bound targets. Pamica is working to reduce its impact in relation to pollution of air in the value chain through its Supplier Code (MDR- T -81a-b). For more information on the Supplier Code, see sections S2 and G1. E2-4. Pollution of air, water and soil In the double materiality assessment, pollution of air was only deemed material in the upstream value chain. The remaining sub-topics were not deemed material from either an impact or a financial p erspective. The quantitative datapoints listed under E2-4 encompass only pollution from own operations, and no such data is presented for the Group since po llution is material only upstream in Pamica’s value c hain. chain. Nor can it provide a list of business activities linked to negative impacts on pollution of air (E2-IRO-AR9). The Supplier Code requires suppliers to limit and pre- vent environmental pollution affecting air, water, soil and health. The Environmental Policy is established at Group level, approved by the Board and reviewed every year. It is subsequently the responsibility of the CEO of each portfolio company to ensure that the policy and any updates are implemented throughout the operations. Read more about the Group’s policies on page 29 (E2-1-15a, c). 34 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Disclosure requirements related to ESRS 2, IRO-1. Description of the processes to identify and assess material resource use and c ircular economy-related impacts, risks and opportunities Pamica has identified and assessed actual and poten- tial impacts, risks and opportunities related to resource use and circular economy as a part of the framework of the double materiality assessment. The assessment covers the Group’s own operations and the upstream and downstream value chain. The assessment was carried out as a qualitative analysis based on the Group’s different types of operations and business models, as well as identified dependen- cies in the value chain. The results of the assessment show that all three sub-topics for circular economy (resource inflows, resource outflows and waste) are material from both an impact and a financial perspec- tive. Resource inflows are deemed to be material in the upstream value chain and Pamica’s own opera- tions, resource outflows in the Group’s own opera- tions and downstream value chain, and waste throughout the value chain. No separate quantitative analysis of material flows, life cycles or circularity was applied. A transition to a more circular economy could present both risks and opportunities for the portfolio companies. For example, opportunities may arise from a company positioning itself as a circular alternative, while not including circularity as part of the companies’ value proposition presents a corre- sponding risk. However, these are longer-term impacts, risks and opportunities with a higher level of uncertainty , and Pamica’s current materiality assess- ment did not focus on this in detail (E5-IRO-1-11a). In general, material resource flows arise primarily in Pamica’s Industry and Innovations segments. Due to the diverse operations of the companies, it is E5. Resource use and circular economy E5-1. Policies related to resource use and circular economy Pamica’s Environmental Policy states an overall ambition to contribute to a more circular economy through efficient use of resources and waste minimi- zation. The Policy highlights the importance of con- sidering resource efficiency and circular principles in the operations and in cooperation with business part- ners. The Policy does not include any specific com- mitments or quantified targets on the transition from virgin resources to secondary (recycled) resources (E5-1-15a). The Environmental Policy states that Pamica is to consider environmental aspects in its purchasing and cooperation with suppliers, with the aim of reducing negative environmental impacts. As a supplement, waste and resource management are also covered in the Group’s Supplier Code. By referencing the waste hierarchy , the Code includes requirements on opti- mizing resource use, limiting waste and promoting recycling and reuse to contribute to the transition to a circular economy . There are not currently any specific requirements or targets regarding sustainable sourc- ing of resources, or the use of renewable resources. Matters related to sustainable resource use are thus addressed at an overall level, in line with the results of the double materiality assessment (E5-1-15b). For a list of all of Group policies, see section MDR-P under the general disclosures (ESRS 2). Actions and resources in relation to climate change mitigation and adaptation (MDR-A). No specific actions were taken regarding resource use and circular economy during the reporting year. The reason for this is that Pamica does not currently have sufficient data or established monitoring processes to define appropriate and proportionate actions. For the time being, this matter is being addressed under the framework of the existing Environmental Policy and the ongoing double materiality assessment process. Actions to reduce impacts will be integrated into the development and implementation of a supplier pro- gram in 2026 for the parts of Pamica’s resource inflows and waste that are material in relation to the upstream value chain (MDR-A-62). difficult to single out one or a few specific products or raw materials. However, examples of significant inflows (and associated outflows) include commodi- ties such as aluminum, electronic components, calci- um chloride, fabrics, fuels and food. The assessment of the circular economy was carried out as an integral part of the double materiality assessment. No separate or external consultations specifically focusing on the circular economy were performed (E5-IRO-1-11b). 35 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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E5-5. Resource outflows Pamica as a Group has material resource outflows in its Industry and Innovations business segments. The portfolio companies in these segments produce such goods as truck bodies, electronic components, textile products and dessicants. Pamica’s quantitative reporting of resource out- flows currently only comprises waste. This boundary reflects the nature of the operations and Pamica’s lim- ited ability to reliably collect and compile comparable information on resource outflows (see also the previ- ous section, E5-4 Resource inflows). Pamica intends to gradually develop the reporting and eventually include more types of resource outflows in addition to waste as transparency increases and access to relevant data improves (E5-5-35). For 2025, the total amount of waste generated with- in the Group increased for all waste categories except for hazardous waste. These increases were mainly due to improvements in the collection process and better access to data. The majority of the waste is covered by data that comes directly from waste management pro- viders, but in certain cases estimates were used (MDR-M-77). Resource outflows 20241) (base year) 2025 Waste 1,667.2 3,597.1 Total amount of waste generated Type of waste Hazardous waste (tons) 51.8 55.8 Non-hazardous waste (tons) 1,615.5 3,541.4 Radioactive waste (tons) 0 0 Recycling Non-recycled waste (tons) 475 1,468.5 Non-recycled waste (%) 28% 41% Recycled waste (tons) 1,142.3 2,128.7 Recovery operations Hazardous waste - Waste diverted from disposal - Total amount 44.6 32.8 - Reuse 0.9 0 - Recycling 43.3 32.8 - Other recovery operations 0.3 0 Non-hazardous waste - Waste diverted from disposal - Total amount 1,097.7 2,095.9 - Reuse 0.6 0 - Recycling 1,095.4 1,890.8 - Other recovery operations 1.8 205.1 Disposal of waste Hazardous waste - Total amount 5.4 22.9 - Incineration 5.3 22.8 - Landfill 0 0.1 - Other disposal operations 0.1 0 - Unknown disposal operations 1.8 0 Non-hazardous waste - Total amount 469.6 1,445.5 - Incineration 266.3 332.3 - Landfill 194.2 975.6 - Other disposal operations 9.1 93 - Unknown disposal operations 48.1 44.7 (E5-5-37), (E5-5-38-a) 1) Da ta for one of the portfolio companies was corrected for 2024 due to reporting in the wrong unit. This led to a reduction in the amount of waste last year compared with previously published data. Tracking effectiveness of policies and actions through targets (MDR- T) Pamica has not decided on a timeframe for setting measurable targets for resource use and circular econ- omy . Setting such targets requires further develop- ment of the data basis and monitoring processes throughout the value chain. Monitoring takes place at an overall level by applying the Environmental Policy and through the regular double materiality assess- ment process. The aim for the future is to develop a data basis and processes that will enable more struc- tured monitoring, if this is deemed relevant based on future materiality assessments. No base year was determined due to a lack of targets and indicators ( M D R-T- 81 a-b). E5-4. Resource inflows Pamica’s operations involve limited direct control over the resource use and material flows that arise upstream in the value chain. The portfolio companies have varying degrees of maturity regarding data on input products and materials. In light of this, Pamica has not currently included detailed reporting on resource inflows, such as material volumes or share of secondary materials, in its sustainability reporting. Pamica is monitoring developments in this area and intends to gradually develop the reporting of resource inflows as transparency increases and access to rele- vant information improves, (see also MDR-A on the previous page)(E5-4-30). 36 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Disclosures under the EU Taxonomy Regulation Evaluation of eligibility The EU Taxonomy Regulation (2020/852) is a classifi- cation system that defines environmentally sustain- able economic activities, and 2025 was the first year in which Pamica was subject to this Regulation. Accord- ingly , Pamica identified eligible economic activities within the Group during the year and is reporting as a non-financial undertaking. In order to determine Pamica’s eligible economic activities, an analysis was carried out of all activities included in the Regulation in relation to the activities of the Group and each portfolio company , in terms of sales (turnover), capital expenditure (CapEx) and operating expenditure (OpEx). The analysis identi- fied nine eligible activities, of which four generate turnover, three generate CapEx and two generate both turnover and CapEx. No alignment with the technical screening criteria of the Taxonomy Regula- tion was established for these activities, or with the minimum safeguards. Pamica has no activities related to nuclear energy or fossil gas fuels. During the year, the EU published certain simplifi- cations of the Taxonomy Regulation under the Omni- bus package. Pamica Group has decided to apply the simplified disclosure requirements published in the Official Journal of the European Union on 8 January 2026, in accordance with Regulation (EU) 2026/73. The updated regulation also provides for the option to exclude Taxonomy reporting of OpEx if this is not deemed material to the business model. Due to the narrow definition of OpEx in the Taxonomy , this rep- resents a very small proportion (less than 1%) of Pam- ica’s total expenses, which is why it is deemed to be non-material and is excluded from detailed reporting. Furthermore, based on the new materiality thresh- old of 10% in the updated Regulation, Pamica has decided to exclude four construction-related activi- ties, since these jointly represent about 2% of the Group’s CapEx: Economic activity and environmental objective Description of relevance to Pamica Group CE 1.2 Manufacture of electrical and electronic equipment Two of Pamica’s portfolio companies manufacture such equipment and thus have both turnover and CapEx related to the activity. The remaining companies in the Group have CapEx linked to the purchase or lease of electrical and electronic equipment. CE 5.1 Repair, refurbishment and remanufacturing Turnover from one of Pamica’s portfolio companies that refurbishes furniture, among other operations. CE 5.4 Sale of second-hand goods Turnover from two of Pamica’s subsidiaries that sell second-hand electronics. CR 5.5 Product-as-a-service and other circular use- and result- oriented service models Turnover and CapEx from three of Pamica’s portfolio companies from rental of electronics. CCM 3.19 Manufacture of rail rolling stock constituents Turnover from one of Pamica’s portfolio companies that manufactures and refurbishes railway equipment. CCM 3.21 Manufacturing of aircraft Turnover from one of Pamica’s portfolio companies that manufactures and refurbishes aircraft equipment. CCM 6.5 Transport by motorbikes, passenger cars and light commercial vehicles CapEx for the purchase and lease of light vehicles. CCM 6.6 Freight transport services by road CapEx for the purchase and lease of heavy vehicles. CCM 7.7 Acquisition and ownership of buildings CapEx for the lease of buildings and premises. includes direct investment related to fixed assets and includes the acquisition cost of intangible assets (excluding goodwill), property , plant and equipment and right-of-use assets (before depreciation and impairment), as presented in Notes 13 and 14 on pages 71-73 and Note 31 on page 81. Total OpEx (the denominator) under the Taxonomy includes the costs of maintenance and repair of fixed assets (and directly related personnel costs), research and development costs, and costs for short-term leas- es. However, OpEx has been deemed to be non-mate- rial to Pamica’s business model due to the low propor- tion that relates to the Taxonomy . Therefore, detailed reporting of OpEx is excluded, but total OpEx is included in the summary table. • R enovation of existing buildings • I nstallation, maintenance and repair of energy efficiency equipment • I nstallation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) • I nstallation, maintenance and repair of renewable energy technologies Reporting policies Pamica prepares its entire Annual Report in line with IFRS Accounting Standards and the compilation of the financial KPIs is consistent with the financial statements. Pamica minimizes the risk of double counting by defining eligible Taxonomy activities and separating income and costs per activity . Turnover derived from the eligible Taxonomy activities (the numerator) relates to income from ser- vices and products offered by the portfolio compa- nies. This includes the manufacture of rail rolling stock constituents and aircraft (activities 3.19 and 3.21 under the objective of climate change mitigation), the manufacture of electrical and electronic equipment (activity 1.2 under the objective of circular economy), and the repair, refurbishment and remanufacturing, sale of second-hand goods and product-as-a-service (activities 5.1, 5.4 and 5.5 under the same objective). Pamica Group’s total turnover (the denominator) is defined as the Group’s total income, refer to Note 3 on page 65. CapEx derived from eligible Taxonomy activities (the numerator) includes the value of purchased and leased vehicles (activities 6.5 and 6.6 under the objec- tive of climate change mitigation), leased buildings (activity 7.7 under the same objective), purchased and leased electrical and electronic equipment (activity 1.2 under the objective of circular economy) and CapEx related to offering customers a product-as-a-service (activity 5.5 under the same objective). Total CapEx (the denominator) under the Taxonomy Regulation 37 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Financial year 2025 KPI Total Proportion of Taxonomy-eli- gible activities Taxono- my-aligned activities Proportion of Taxono- my-aligned activities Breakdown by environmental objectives of Taxonomy-aligned activities Proportion of enabling activities Proportion of transitional activities Not assessed activities considered non-material Taxonomy-aligned activities in previous financial year (2024) Proportion of Taxonomy- aligned activities in previous financial year (2024) Climate Change Mitigation Climate Change Adaptation Water Circular Economy Pollution Biodiversity MSEK % MSEK % % % % % % % % % % MSEK % Turnover 5,114 6.9% 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0 0.0% CapEx 150 69.4% 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.0% 0.0 0.0% OpEx 37 0.0% 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0 0.0% Relevant KPI Turnover Financial year 2025 Economic Activities Code Proportion of Taxonomy-eligible turnover Taxonomy- aligned turnover Proportion of Taxonomy- aligned turnover Environmental objective of Taxonomy-aligned activities Enabling activity Transitional activity Proportion of Taxonomy-aligned in Taxonomy-eligible Climate Change Mitigation Climate Change Adaptation Water Circular Economy Pollution Biodiversity % MSEK % % % % % % % E T % Manufacture of electrical and electronic equipment CE 1.2 1.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% - - 0.0% Repair, refurbishment and remanufacturing CE 5.1 0.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% - - 0.0% Sale of second-hand goods CE 5.4 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% - - 0.0% Product-as-a-service and other circular use- and result-oriented service models CE 5.5 0.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% - - 0.0% Manufacture of rail rolling stock constituents CCM 3.19 3.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% E - 0.0% Manufacturing of aircraft CCM 3.21 1.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% - T 0.0% Sum of alignment per objective 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total 6.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Relevant KPI CapEx Financial year 2025 Economic Activities Code Proportion of Taxonomy-eligible CapEx Taxonomy- aligned CapEx Proportion of Taxonomy- aligned CapEx Environmental objective of Taxonomy-aligned activities Enabling activity Transitional activity Proportion of Taxonomy-aligned in Taxonomy-eligible Climate Change Mitigation Climate Change Adaptation Water Circular Economy Pollution Biodiversity % MSEK % % % % % % % E T % Manufacture of electrical and electronic equipment CE 1.2 20.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% - - 0.0% Acquisition and ownership of buildings CCM 7.7 19.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% - - 0.0% Transport by motorbikes, passenger cars and light commercial vehicles CCM 6.5 21.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% - T 0.0% Freight transport services by road CCM 6.6 3.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% - T 0.0% Product-as-a-service and other circular use- and result-oriented service models CE 5.5 4.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% - - 0.0% Sum of alignment per objective 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total 69.37% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 38 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Disclosure requirements related to ESRS 2, SBM-3. Material impacts, risks and opportunities and their interaction with strategy and business model All groups in Pamica’s own workforce that may be affected by a material impact are included in the reporting. The definitions used are as follows: • O wn workforce: All employees with an employ- ment contract with Pamica Group AB or any of its portfolio companies. • N on-employees: Individuals in the Group’s own workforce, including both individual consultants supplying labor to the company (“self-employed people”) and people provided by undertakings p rimarily engaged in “employment activities. ” Subcontractors and temporary employees are includ- ed in the assessment when their working conditions may be impacted by Pamica’s operations or gover- nance. The categories primarily subject to material impacts are manufacturing personnel, technicians and field personnel, administrative functions, manag- ers and specialist roles. For some portfolio compa- nies, temporary employees and external consultants are also relevant. Material negative impacts mainly relate to occupational health and safety risks, such as accidents, incidents and ergonomic strains in opera- tional activities. Risks include health and safety inci- dents, skills supply and employee turnover in knowl- edge-intensive sectors. Workers may be impacted by changes in work duties, new skill requirements and training needs when more resource-efficient process- es or new technical solutions are introduced. Transi- tion may also involve changes in work procedures, the use of new equipment and increased safety requirements. No part of Pamica’s operations, includ- ing the geographical areas where operations are S1-1. Policies related to own workforce Pamica governs occupational health and safety , human rights, inclusion and non-discrimination issues through Group-wide policies such as the Code of Conduct, health and safety procedures, and inci- dent reporting processes. These policies apply to all companies and include requirements for a safe work environment, respect for workers’ rights and preven- tion of discrimination (S1-1-19). Pamica’s Code of Conduct stipulates the commit- ments to respect human rights, labor principles, free- dom of association, safe working conditions and rea- sonable working hours in accordance with the guidelines of the UN Declaration of Human Rights, ILO Core Conventions and OECD Guidelines. Pamica also sets equivalent requirements for suppliers’ employees in its Supplier Code. Pamica’s Code of Conduct prohibits discrimination, harassment, child labor and forced labor. These com- mitments apply to all employees and subcontractors. Pamica requires all portfolio companies to ensure that their occupational health and safety and working conditions comply with applicable legislation and international principles. Pamica is committed to treating all employees fairly , respecting their rights and providing safe and healthy working conditions. Pamica encourages dialog through regular meetings, workplace forums, performance reviews and local HR functions. The Code of Conduct makes it clear that employees are free to express their views and that management is responsible for listening to such views, ensuring transparency and making active improvements. Established reporting channels and an independent investigation process are used in the event of suspected rights violations. Pamica under- takes to act promptly , provide protection to the reporter and ensure corrective actions in the portfolio companies (S1-1-20). S1. Pamica’s workforce Pamica’s Code of Conduct and labor principles are aligned with international standards (see table on page 29) (S1-1-21). The Code of Conduct explicitly pro- hibits all forms of forced labor, child labor and human trafficking (S1-1-22). Pamica has occupational health and safety processes aimed at preventing acci- dents through risk assessments, incident reporting procedures, training and local safety organizations. The portfolio companies are responsible for ensuring systematic work environment management (S1-1-23). The Code of Conduct sets out a zero tolerance poli- cy for discrimination based on gender, age, ethnicity , religion, disability , sexual orientation or other pro- tected grounds. It also includes the prevention of harassment. All employees are to be treated fairly and recruitment is to be based on skills and qualifications. The policy explicitly prohibits discrimination based on: • sex • g ender identity • e thnicity and nationality • r eligion • d isability • s exual orientation • a ge • p olitical or trade union affiliation Pamica is committed to creating inclusive workplaces where everyone is afforded equal opportunities. The policy emphasizes that specific groups are to be given additional support, training and safety procedures where relevant. Pamica prevents and manages dis- crimination through established HR processes, inci- dent reporting, independent investigations and com- pulsory compliance with the Code of Conduct. These processes ensure that deviations are investigated and corrective actions are taken. As a supplement, all companies have a local employee handbook (S1-1-24). conducted, is associated with a risk of forced or child labor (S1-SBM-3-14). Pamica takes into account the interests, views and rights of its own workforce, including respect for human rights, through the Group’s governance model and the double materiality assessment. These per- spectives provide a strategic basis for setting priori- ties for policy development, governance and overall risk management (S1-SBM-3-12). Actual and potential impacts on the Group’s own workforce are analyzed under the framework of the double materiality assess- ment, where impacts relate to the business model and governance at Group level. Identified risks and impacts are managed through the Group’s established policy , governance and risk management processes to prevent and mitigate negative impacts on its own workforce (S1-SBM-3). Pamica has not identified any material risks or opportunities related to dependencies on affected communities in relation to its own workforce. Pamica has not either determined that a specific group in the Parent Company or the portfolio companies is partic- ularly vulnerable or at a greater risk of harm (S1-SBM-15), and therefore no specific risks have been identified in this respect (S1-SBM-16). 39 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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S1-2. Processes for engaging with own workforce and workers’ representatives about impacts Pamica considers employee perspectives through regu- lar dialogs, performance reviews, occupational health a nd safety meetings, and incident reporting. Views and observations are used to identify health and safety risks, skills needs and areas for improvement and are integrated into governance and local action plans. Dia- log mainly takes place directly with employees through m anagers, HR functions and work environment organi- zations. Dialog also takes place through workers’ repre- sentatives in the companies that have such representa- tives. Dialogue mainly takes place in connection with: • i ntroduction och onboarding • a nnual performance reviews • w ork environment and safety inspections, as well as committees • r eporting of incidents and near misses • o ngoing follow-ups under the Group’s governance model T he operational responsibility for dialogs with the Group’s own workforce is assigned to the CEO and HR function of each portfolio company . At Group level, management is responsible for ensuring that the results of dialogs are integrated into governance, risk manage- ment and development activities. Effectiveness is mon- itored through occupational health and safety data, i ncident statistics, results of performance reviews and dialogs with HR. In the event of deviations or recurring problems, improvement measures and monitoring are initiated under the framework of the governance mod- el. Pamica does not have an established process for c ommunicating how employee engagement has been integrated into decisions, nor does it have global frame- work agreements with trade unions (S1-2-27). P amica has not identified any particularly vulnerable groups and has therefore not taken any measures for such groups (S1-2-28). S1-3. Processes to remediate negative impacts and channels for own workers to raise concerns Pamica manages any negative impacts identified by following established procedures for incident report- ing, independent investigation and corrective action for potential remediation. This process includes iden- tifying the root cause, action plans and follow-ups in the line organization. HR and management are involved in serious cases, and the results are followed up under the framework of the Group’s governance model. Employees can raise concerns, irregularities or needs through their closest manager, HR, safety officers or through an independent whistleblower channel. All channels are open for reporting occupa- tional health and safety issues, rights-related issues and unethical behavior (S1-3-32a-b). Pamica provides an external whistleblower func- tion that allows all employees to report irregularities anonymously and independently from their own organization. The function is managed by an external party to ensure objectivity and privacy (S1-3-AR-29). The Group has established mechanisms for receiv- ing, managing and following up employee grievances. These include occupational health and safety process- es, HR procedures and whistleblower channels. Pami- ca requires all portfolio companies to establish reporting channels that meet the Group’s require- ments. This is followed up through the governance model, with the companies’ HR functions or equiva- lent functions reporting on how local processes func- tion and the improvements have been made. Reported cases are documented and followed up by the respon- sible manager or HR. For serious cases, investigations are carried out by independent functions. The effec- tiveness of the channels is evaluated by analyzing incident data, reporting in the governance model and Action plans and resources to manage the company’s material impacts, risks, and opportunities related to its own workforce (MDR-A) Due to Pamica’s decentralized governance structure, the portfolio companies are responsible for identify- ing any needs to strengthen occupational health and safety , improve incident follow-up processes and ensure more standardized HR procedures. The mea- sures taken by the portfolio companies cover their entire own workforce and concentrate on the work environment and activities associated with physical safety risks. These measures are being carried out in stages as part of the Group’s governance model and are expected to be implemented and monitored every year. One example is that Pamica has started work on harmonizing the Code of Conduct. However, no results can be reported at the current time as a fol- low-up has not yet been performed. This is also the first year of CSRD-compliant reporting and no previ- ous formal action plans have been reported. Progress will be monitored and reported in future reporting periods (MDR-A-68). For this financial year, Pamica is unable to report current or future OpEx or CapEx related to action plans. These KPIs are not currently monitored due to the Group’s decentralized structure (MDR-A-69). dialog with employees about the reliability of the pro- cess (S1-3-32c-e). Awareness of and trust in reporting channels is ensured through onboarding communication, regular reminders and accessible policies. The Code of Con- duct clearly prohibits retaliation against individuals reporting concerns or suspected violations. Pamica guarantees protection for those who report in good faith, and breaches of this retaliation protection are considered serious policy violations (S1-3-33). 40 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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S1-4. Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions Pamica takes ongoing action to prevent and reduce negative impacts on its own workforce, including improved occupational health and safety procedures, training in such areas as business ethics, safety and health, risk assessments and enhanced incident reporting. This helps to establish a safety culture, and the portfolio companies work actively to identify risk areas and take corrective actions in the event of devi- ations. Established procedures for investigation, feed- back and actions are activated in the event of actual incidents or negative impacts. HR and managers are responsible for ensuring that affected employees receive support and that necessary improvements are made. Serious incidents are reported to management according to established processes. Pamica also reduces negative impacts through introduction pro- grams, skills development, employee dialogs, and tar- geted work environment and inclusion initiatives. Several portfolio companies work continuously on improvement proposals from employees to improve job satisfaction and development opportunities. The results and effectiveness of actions taken are evaluat- ed through incident data, work environment statis- tics, dialogs and follow-up under the framework of the Group’s governance model and general employee dialog (described in section S1-2). Actions are adjusted as necessary to ensure that risks are reduced and the work environment is improved (S1-4-38). When negative impacts are identified, a structured process is implemented that includes risk assessment, analyzing root causes, defining actions and responsi- bilities, and monitoring implementation (S1-4-39). This work focuses on strengthening procedures, improving introductions for new employees, develop- ing reporting channels and harmonizing processes in the portfolio companies. Pamica works to enhance its skills supply and leadership development in order to leverage opportunities to mitigate actual or potential risks or negative impacts related to engagement, skills development and attractiveness (S1-4-40). Pamica’s policies require that all employees are treated fairly and that health and safety management is carried out systematically . HR processes, reporting channels, the Code of Conduct and internal control ensure that the Group’s own practices do not cause or contribute to negative impacts on employees (S1-4- 41). Resources to address key occupational health and safety and HR issues consist of local HR functions, safety organizations, health and safety activities, and training. Material impacts regarding employees are mainly managed at the portfolio company level, which is why it is not possible to estimate such resource allocation (S1-4-43). Tracking effectiveness of policies and actions through targets (MDR- T) Pamica’s overall targets for its own workforce are based on the Code of Conduct. Pamica does not have a base year for the targets set for its own workforce. The previously communicated target for gender diver- sity on the Board is being revised. Pamica’s Group target • P amica shall have a balanced gender distribution (minimum 40/60) in all management teams and among employees. • Ea ch of Pamica’s portfolio companies shall have an employee performance index (BPI)3) of at least 80. Targets for Pamica’s portfolio companies • A nnual improvement in BPI, or BPI above 80. Target achievement gender diversity by employee category 2024 2025 Percentage of companies with gender diversity (40/60) management team (%) 16.7 16.7 Percentage of companies with gender diversity (40/60) employees (%) 20.0 29.2 Target achievement employee satisfaction 2024 2025 Percentage of companies with BPI of 80 or more (%) 23.5 26.7 Percentage of companies that improved their BPI since the previous survey (%) 35.3 4 6.7 The targets cover the entire workforce. The targets have no defined time horizon but are monitored con- tinuously . Pamica does not have interim targets linked to these targets. The targets are based on the risk mapping in the materiality assessment, historical data, health and safety statistics, and policy requirements. Representa- tives from HR, management, workforce representa- tives and local managers may be involved in formu- lating the targets. If necessary , external experts or trade union representatives may also provide input. No targets, methods or assumptions were changed (MDR- T80). 3) BPI st ands for Business Performance Index. BPI measures how engaged and satisfied employees are with their work situation. To gain a more detailed understanding of what creates engagement and satisfaction, the quality of leadership and the team’s performance environment are measured. 41 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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S1-5. Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Relevant parts of the workforce are included in set- ting targets through discussions with managers and employee representatives, such as safety officers and trade union representatives. Their perspectives are used to ensure that targets related to the work envi- ronment, safety and inclusion are relevant and achievable. Targets are followed up in dialog with HR, managers and workforce representatives, who report local observations, incident data and improve- ment needs. Employees provide feedback through work environment and safety inspections, perfor- mance reviews and local collaboration forums. Les- sons and improvements are identified through inci- dent follow-ups, safety inspections and dialogs with HR and managers. The workforce and their represen- tatives can raise needs for changes related to safety , processes, training or work environment (S1-5-47). Skills development metrics (headcount)1) 2025 Gender Male 76.9% Female 61.0% Other2) - Not disclosed - Total head count 70.7% (S1-13-83a) 1) Number o f people in whole numbers who had performance reviews during the year 2) Gender as specified b y the employees themselves S1-6. Characteristics of the undertaking’s employees Gender diversity (headcount) 2025 Male 1,560 Female 1,000 Other1) 0 Not disclosed 0 Total employees 2,560 1) Gender as specified b y the employees themselves Number of employees by country 2025 Sweden 1,933 Latvia 342 Norway 105 Denmark 89 Finland 33 China 31 Other countries1) 27 Total headcount 2,560 (S1-6-50a) 1) F rance, India, Singapore, the UK, Germany, the US and Vietnam 2025 Number of employees by type, broken down by gender (FTE) Female Male Other 1) Not disclosed Total Number of employees 884.7 1280.6 0 0 2165.3 Number of permanent employees 856.3 12 3 7.9 0 0 2094.2 Number of temporary employees 28.4 42.7 0 0 71.1 Of whom, number of non-guaranteed hours employees2) 8.4 60.8 0 0 69.2 Number of full-time employees 829.6 1234.7 0 0 2064.2 Number of part-time employees 56.1 49 0 0 105.1 (S1-6-50b) 1) Gender as specified b y the employees themselves 2) Non-guaranteed hours employees can be either permeant or temporary employees, and do not have any guaranteed working hours S1-7 . Characteristics of non-employees in the undertaking’s own workforce Non-employees in the undertaking’s own workforce (FTE) 2025 Self-employed people 34.6 People provided by other organizations 83.8 Others 0 Total number of non-employees 118.4 (S1-7-55a) Employee turnover1) 2025 Number of employees who have left the company during the year 466 Employee turnover 19.0% (S1-6-50c) 1) Emplo yee turnover is calculated by dividing the number of people who have left the company during the year by the average number of employees at the beginning and end of the year. Employees are reported as full-time equivalents (FTEs) and are presented as an average across the reporting period 4) (S1-6-50d). To provide contextual information for these figures, the workforce includes several business areas and geographies with different skill requirements and growth patterns. Variations between years may be due to acquisitions, integra- tions or organizational changes (S1-6-50e). The reported number of FTEs is not consistent with what is stated in the consolidated financial statements. The figures presented on page 21 differ by 86.7 persons compared with the number of FTEs in the Sustain- ability Report. The difference is partly due to the Sus- tainability Report not including divested companies. If the divested companies were also excluded from these figures in the financial statements, the difference would be 11.2 FTEs. In addition to this dif- ference, a variety of systems are used for sustainabili- ty and financial reporting, and different functions are often involved in each reporting, which contributes to the difference. Pamica will seek to improve this pro- cess going forward (S1-6-50f). Pamica uses FTEs for the KPIs where possible under the ESRS in order to align with the financial statements. FTEs are calculated as the number of total hours worked divided by normal annual hours worked, meaning that FTEs are often presented with decimals. The number of total hours worked includes all hours for which the company has paid work-relat- ed remuneration. These hours include paid vacation, leave of absence, sick leave and compensatory leave, but not overtime, and align with various geographical legal differences. This was taken into account by each company assuming responsibility for its own data reporting, meaning that it is based on the local con- text. Where it is not possible to use FTEs, Pamica reports KPIs that relate to employees in terms of the head count, which is an average for the year (MDR-M-77). 42 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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S1-9. Diversity metrics 2025 Gender diversity at top management Number of employees Percentage Male 102 79.1% Female 27 20.9% Other1) 0 0.0% Not disclosed 0 0.0% Total (at top management) 129 (S1-9-66a) 1) Gender as specified b y the employees themselves 2025 Distribution of employees by age group Number of employees Percentage Under 30 years old 498 19.5% 30-50 years old 1,420 55.5% Over 50 years old 642 25.1% Total number 2,560 (S1-9-66b) S1-10. Adequate wages Pamica’s portfolio companies ensure that all employ- ees receive wages that exceed national minimum wag- es and relevant market benchmarks in the countries where the Group conducts operations. Pamica ensures that its portfolio companies regularly review wages for their employees (S1-10-69). S1-14. Health and safety metrics During the reporting year, 99% of Pamica’s workforce (based on FTE) was covered by an occupational health and safety management system that complies with current legal requirements and, where applica- ble, recognized standards or guidelines. There were no fatalities among Pamica’s own workforce or among other workers as a result of work-related injuries or work-related ill health during the reporting year. The total number of recordable work-related accidents among Pamica’s own workforce amounted to 111 in the reporting year.The rate of recordable work-related accidents among Pamica’s own workforce was 27 (number of accidents per million hours worked). The number of days lost due to work-related injuries or ill health amounted to 784 (S1-14-88a-c). S1-16. Remuneration metrics (pay gap and total remuneration) Remuneration metrics 2025 Pay gaps 18.9% Remuneration ratio1) - (S1-16-97a-b) 1) Da ta is not available in the current system, and Pamica is therefore unable to report on this datapoint. Pay-related KPIs were compiled based on the remu- neration data available from Pamica’s portfolio com- panies. The results may be affected by such factors as industry , role distribution, geographical spread, seniority and skill structures (S1-16-97c). The reason that the remuneration ratio cannot be reported is the lack of a centralized personnel system. S1-17 . Incidents, complaints and severe human rights impacts Incidents of discrimination and harassment 2025 Total number of reported incidents of discrimination or harassment in own workforce 7 Number of complaints filed through Pamica’s internal reporting channels 7 Total amount of fines, penalties, and compensation for damages as a result of discrimination or harassment 0 (S1-17-103a-c) The disclosures are based on cases reported via HR, managers, legal functions and the Group’s whis- tleblower channels (S1-17-103-d). During the year, Pamica took action to ensure that shortcomings in its equal treatment processes aimed at combating dis- crimination were strengthened and that similar cases are not repeated. Adequate penalties for violations were imposed and appropriate remediation was pro- vided to the affected parties. When necessary , renewed training and information activities are car- ried out to ensure a high level of awareness in the organization about Pamica’s work on gender equality and equal treatment. Severe human rights incidents 2025 Number of severe human rights incidents connected to own workforce 0 Number of incidents that are cases of non-respect of the UN Guiding Principles or OECD Guidelines 0 Total amount of fines, penalties and compensation for damages for human rights incidents 0 (S1-17-104a-b) Pamica did not identify any severe human rights inci- dents related to its own workforce during the report- ing year (S1-17-104a). 43 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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BP-2. Disclosures in relation to specific circumstances Pamica has chosen to make use of the phase-in provi- sions according to the EU Delegated Act. This means that the material topic ESRS S2 Workers in the value chain, is described in brief in accordance with the basis for preparing the Sustainability Report, disclo- sures on specific circumstances (BP-2-17). S2. Workers in the value chain Action plans in relation to workers in the value chain As of now, Pamica has not adopted specific actions targeted at workers in the value chain. This is mainly because Pamica does not have direct operational con- trol over the working conditions in the value chain, as well as limited access to reliable and comparable information on workers at suppliers and other busi- ness partners. Pamica currently addresses these issues by making general requirements in the Supplier Code and by gradually developing processes for risk assess- ment and monitoring in the value chain. Pamica has initiated the process of preparing a Group-wide sup- plier program for implementation in 2026. Targets in relation to workers in the value chain Pamica has set targets for signing the Group’s Suppli- er Code, which governs Pamica’s impact in the upstream value chain and is described in the table on page 29. Suppliers commit to comply with the Suppli- er Code when they sign it. The work related to suppli- ers will be formalized further in the Group’s supplier program, which is being developed for implementa- tion in 2026. Pamica’s Group target: • 1 00% of the Group’s strategic suppliers should sign Pamica’s Supplier Code and be systematically monitored to ensure compliance with the Code. • P amica Group AB is to prepare a Group-wide supplier program Targets for Pamica’s portfolio companies: • A ll portfolio companies are to implement the supplier program in 2026 The target includes the first stage of Pamica’s upstream value chain and is calculated as a percent- age based on strategic suppliers in relation to the total number of suppliers in the Group. Pamica has set a Group-wide definition of strategic suppliers. In addition to the target, the ambition is to gradually develop the data basis, processes and governance through the supplier program, which in turn will enable more structured monitoring in the future and in relation to material impacts. The target is time- bound and has no base year since the set of suppliers varies over time. External stakeholders were not involved in setting the targets. For 2025, 72% of all suppliers identified as strategic had signed the Group’s Supplier Code. This is the first year that Pamica is monitoring this target and the process of monitoring and achieving the Group’s target will be further formalized in connection with the forthcom- ing supplier program. 44 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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G1. Business conduct Disclosure requirements related to ESRS 2, IRO-1. Description of the process to identify and assess material impacts, risks and opportunities The process of evaluating materiality for business conduct included identifying and analyzing potential impacts, risks and opportunities related to Pamica’s operations and business relationships. The process considered such criteria as geographical exposure, type of operations, sector affiliation and transaction structure to identify areas where the risk of irregular- ities, conflicts of interest or other business ethics challenges may be elevated. The aim of the assess- ment is to ensure that relevant business ethics aspects are taken into account in the company’s risk manage- ment and decision-making processes. Disclosure requirements related to ESRS 2 GOV-1. The role of the administrative, management and supervisory bodies The Board is responsible for the overall governance of business conduct, including compliance with the Code of Conduct, risk management and internal con- trol systems. The Audit Committee monitors risks related to regulatory compliance, business ethics and internal control. Management is responsible for implementing policies, monitoring the operations and reporting to the Board. Business conduct is integrated into the Group’s governance model, and the portfolio companies follow requirements on compliance, trans- parency and responsible conduct. Pamica’s Board has extensive experience in corpo- rate governance, risk management, finance and lead- ership in international businesses. The Board mem- bers’ combined expertise includes compliance, internal control, ethics and sustainable governance. Several Board members have backgrounds as CEOs, chairmen or senior executives of companies subject to extensive business conduct requirements. The Board complements its expertise with internal guidelines, policies and external expertise wherever necessary . Group management ensures that business conduct is integrated into operational processes and that the portfolio companies comply with applicable regula- tions (G1-GOV-1-5a-b). G1-1. Business conduct policies and corporate culture Pamica has established mechanisms to identify and report suspected irregularities, unethical behavior and violations of the Code of Conduct. Employees are encouraged to report deviations to their immediate manager, HR or company management. Serious breaches or situations where reporting through the line organization is not appropriate can be reported through an independent whistleblower function. Inci- dents are investigated objectively and confidentially according to established processes, and the outcome is reported to management and the Board as appro- priate. Pamica does not currently offer dedicated training for the people who receive these reports. Each company is responsible for providing informa- tion and training on the availability of the whis- tleblower channel to its workers. Pamica also requires suppliers to maintain a high level of business ethics and compliance via the Supplier Code (G1-1-10a). Pamica is committed to investigating all reported incidents relating to business conduct, corruption, bribery , conflicts of interest or other violations promptly , independently and objectively . Investiga- tions are carried out in accordance with the Group’s Code of Conduct and Anti-corruption Policy and may involve external expertise where necessary . Actions are taken to correct shortcomings and prevent recur- rence (G1-1-10e). Pamica expects all employees and managers to read and agree to the content of the Code of Conduct and the Anti-corruption Policy , and to ensure that these documents are communicated in connection with introductions and updates. The Group uses training and ongoing communication to raise awareness of ethical behavior, regulatory com- pliance and risks related to corruption, conflicts of interest and undue influence. The portfolio compa- nies are responsible for arranging training activities locally (G1-1-10g). The functions deemed to have the highest exposure to corruption and bribery risks are purchasing, sales, business development and senior roles involving external decision-making contacts. These functions manage business agreements, suppli- er relationships and financial transactions that entail a higher level of risk. The Anti-corruption Policy , Related Party Policy and Global Trade Policy set out requirements for transparency , controls, documenta- tion and approval processes for minimizing these risks (G1-1-10h). 45 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Disclosures to be reported if the undertaking has not set any measurable outcome-oriented targets (MDR- T) Pamica has identified areas where further action is required to fully manage material impacts, risks and opportunities. Where actions have not yet been deter- mined, this is mainly due to the need for further anal- ysis, the development of shared ways of working or collecting more detailed data from portfolio compa- nies. Priorities are set in accordance with the Group’s governance model and resource planning, focusing on areas with the highest risk or highest potential impact (MDR-A-62). G1-4. Incidents of corruption or bribery During the reporting period, Pamica had no con- firmed incidents of corruption or bribery . There were also no convictions related to violations of anti-cor- ruption and anti-bribery laws. Therefore, the amount of fines is equal to zero (G1-24a). The table below shows the coverage of functions- a t- risk in the organization in relation to corruption c overed by anti-corruption training programs: Total head count Number receiving training Coverage rate (%) Functions-at-risk/category 325 101 31.1 (G1-4-24b) No assumptions were made in reporting the above metrics. The method of data collection for confirmed incidents of bribery is checked with each portfolio company . Functions-at-risk are defined as functions, roles or departments that may have an elevated risk of exposure to corruption and bribery , including those involved in large-scale sales, marketing and hospitali- ty events, or those with the authority to approve large sums or contracts. Action plans and resources to manage the undertaking’s material impacts, risks, and opportunities related to corruption and bribery (MDR-A) Pamica’s portfolio companies are responsible for implementing action plans and allocating resources to combat corruption and bribery according to the needs of each company . Anti-corruption and anti-bribery will also be addressed in Pamica’s supplier program (MDR-A-68a). G1-3. Prevention and detection of corruption and bribery Pamica has established procedures for preventing, detecting and managing corruption and bribery . The Anti-corruption Policy prohibits all forms of improp- er advantage, bribery , conflicts of interest and undue influence. The policy is supplemented by require- ments on transparency , approval processes and docu- mentation for gifts, representation and business rela- tionships. Suspected violations are to be reported and investigated according to established processes. Investigations of suspected corruption or bribery are handled by functions outside the line organization where the incident may have occurred, thus ensuring independence and objectivity . External expertise or legal advice is engaged, as necessary , to strengthen the integrity of the investigation. The results of inves- tigations into business ethics violations are reported to company management and, in the case of serious incidents, to the Board or the Audit Committee. The reporting lines follow the Group’s established gover- nance and internal control processes. The Group’s Supplier Code specifies that suppliers may not con- tribute to or tolerate any form of corruption, bribery , money laundering or terrorist financing within their operations or value chain (G1-3-18a-c). The Anti-corruption Policy , Code of Conduct and other policies are communicated to all employees through introductions, internal channels and regular reminders. The CEO of each portfolio company is responsible for implementation and ensuring that the policies are readily available to all employees (G1-3- 20). Pamica has an explicit expectation that employ- ees understand and follow its business conduct and anti-corruption policies. Training covers the Code of Conduct, rules on gifts and representation, the Anti-Corruption Policy , conflicts of interest and reporting procedures for suspected violations as well as other knowledge-enhancing initiatives. Percentage of functions-at-risk in relation to corruption covered by anti-corruption training programs is 31%. Mem- bers of the Board, management and other relevant decision-making bodies are subject to training on the Code of Conduct and Anti-corruption Policy (G1-3-21). 46 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Appendices ESRS index Table of disclosure requirements applied in Pamica’s Sustainability Report and page references. Disclosure requirements Name of disclosure Page ESRS 2 General disclosures BP-1 General basis for preparation of the Sustainability Report 23 BP-2 Disclosures in relation to specific circumstances 23 GOV-1 The role of the administrative, management and supervisory bodies 23 GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies 24 GOV-3 Integration of sustainability-related performance in incentive schemes 24 GOV-4 Statement on due diligence 24 GOV-5 Risk management and internal controls over sustainability reporting 24 SBM-1 Strategy, business model and value chain 25 SBM-2 Interests and views of stakeholders 26 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 26 IRO-1 Description of the process to identify and assess material impacts, risks and opportunities 28 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Report 29 E1: Climate change E1-1 Transition plan 30 SMB-3 Material impacts, risks and opportunities and their interaction with strategy and business model 30 IRO-1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities 30 E1-2 Policies related to climate change mitigation and adaptation 31 E1-3 Actions and resources in relation to climate change policies 31 E1-4 Targets related to climate change mitigation and adaptation 32 E1-5 Energy consumption and mix 32 E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 33 E1-8 Internal carbon pricing 33 E2: Pollution IRO-1 Description of the processes to identify and assess material pollution-related impacts, risks and opportunities 34 E2-1 Policies related to pollution 34 E2-4 Pollution of air, water and soil 34 Disclosure requirements Name of disclosure Page E5: Resource use and circular economy IRO-1 Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities 35 E5-1 Policies related to resource use and circular economy 35 E5-4 Resource inflows 36 E5-5 Resource outflows 36 EU Taxonomy Regulation Disclosures under the EU Taxonomy Regulation 37 S1: Pamica’s workforce SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 39 S1-1 Policies related to own workforce 39 S1-2 Processes for engaging with own workforce and workers’ representatives about impacts 40 S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns 40 S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 41 S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 42 S1-6 Characteristics of the undertaking’s employees 42 S1-7 Characteristics of non-employees in the undertaking’s own workforce 42 S1-9 Diversity metrics 43 S1-10 Adequate wages 43 S1-14 Health and safety metrics 43 S1-16 Remuneration metrics (pay gap and total remuneration) 43 S1-17 Incidents, complaints and severe human rights impacts 43 S2: Workers in the value chain BP-2 Disclosures in relation to specific circumstances (phase-in) 44 G1: Business conduct IRO-1 Description of the process to identify and assess material impacts, risks and opportunities 45 GOV-1 The role of the administrative, management and supervisory bodies 45 G1-1 Business conduct policies and corporate culture 45 G1-3 Prevention and detection of corruption and bribery 46 G1-4 Incidents of corruption or bribery 46 (IRO-2-56) 47 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Datapoints derived from other EU legislation Table of datapoints derived from other EU legislation and where these (when relevant) are included in Pamica’s Report. Disclosure Requirement and related datapoint Reference in the Sustainable Finance Disclosures Regulation (SFDR) Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page number / Material for Pamica ESRS 2 GOV-1 Board’s gender diversity paragraph 21 Indicator number 13 of Table #1 of Annex I Commission Delegated Regulation (EU) 2020/1816 (5), Annex II 23 ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) Delegated Regulation (EU) 2020/1816, Annex II 23 ESRS 2 GOV-4 Statement on due diligence paragraph 30 Indicator number 10 Table #3 of Annex I 24 ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i Indicator number 4 Table #1 of Annex I Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 (6) Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk Delegated Regulation (EU) 2020/1816, Annex II 25 ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii Indicator number 9 Table #2 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii Indicator number 14 Table #1 of Annex I Delegated Regulation (EU) 2020/1818 (7), Article 12(1), Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 Regulation (EU) 2021/1119, Article 2.1 30 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 – Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity. Delegated Regulation (EU) 2020/1818, Article 12.1 (d) to (g), and Article 12(2) 30 ESRS E1-4 GHG emission reduction targets paragraph 34 Indicator number 4 Table #2 of Annex I Article 449a 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 6 31-33 ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high cli- mate impact sectors) paragraph 38 Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex I Not material ESRS E1-5 Energy consumption and mix para- graph 37 Indicator number 5 Table #1 of Annex I 32 ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 Indicator number 6 Table #1 of Annex I Not material 48 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Disclosure Requirement and related datapoint Reference in the Sustainable Finance Disclosures Regulation (SFDR) Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page number / Material for Pamica ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 Indicators number 1 and 2 Table #1 of Annex I Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) 33 ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 Indicator number 3 Table #1 of Annex I Article 449a 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) 33 ESRS E1-7 GHG removals and carbon credits paragraph 56 Regulation (EU) 2021/1119, Article 2(1) Not material ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). Article 449a 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 Not material ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c). Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2: Banking book – Climate change transition risk: Loans collateralized by immovable property – Energy efficiency of the collateral Not material ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69 Delegated Regulation (EU) 2020/1818, Annex II Not material ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 Indicator number 8 Table #1 of Annex I Indicator number 2 Table #2 of Annex I Indicator number 1 Table #2 of Annex I Indicator number 3 Table #2 of Annex I Not material ESRS E3-1 Water and marine resources paragraph 9 Indicator number 7 Table #2 of Annex I Not material ESRS E3-1 Dedicated policy paragraph 13 Indicator number 8 Table #2 of Annex I Not material ESRS E3-1 Sustainable oceans and seas paragraph 14 Indicator number 12 Table #2 of Annex I Not material ESRS E3-4 Total water recycled and reused paragraph 28 (c) Indicator number 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 number 6.1 Table #2 of Annex I Not material ESRS 2 – IRO 1 – E4 paragraph 16 (a) i Indicator number 7 Table #1 of Annex I Not material ESRS 2 – IRO 1 – E4 paragraph 16 (b) Indicator number 10 Table #2 of Annex I Not material ESRS 2 – IRO 1 – E4 paragraph 16 (c) Indicator number 14 Table #2 of Annex I Not material ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) Indicator number 11 Table #2 of Annex I Not material 49 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Disclosure Requirement and related datapoint Reference in the Sustainable Finance Disclosures Regulation (SFDR) Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page number / Material for Pamica ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) Indicator number 12 Table #2 of Annex I Not material ESRS E4-2 Policies to address deforestation paragraph 24 (d) Indicator number 15 Table #2 of Annex I Not material ESRS E5-5 Non-recycled waste paragraph 37 (d) Indicator number 13 Table #2 of Annex I 36 ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 Indicator number 9 Table #1 of Annex I 36 ESRS 2 – SBM3 – S1 Risk of incidents of forced labor paragraph 14 (f) Indicator number 13 Table #3 of Annex I Not material ESRS 2 – SBM3 – S1 Risk of incidents of child labor paragraph 14 (g) Indicator number 12 Table #3 of Annex I Not material ESRS S1-1 Human rights policy commitments paragraph 20 Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex I 39 ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8, paragraph 21 Delegated Regulation (EU) 2020/1816, Annex II 39 ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22 Indicator number 11 Table #3 of Annex I 39 ESRS S1-1 Workplace accident prevention policy or management system paragraph 23 Indicator number 1 Table #3 of Annex I 39 ESRS S1-3 grievance/complaints handling mechanisms paragraph 32 (c) Indicator number 5 Table #3 of Annex I 40 ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c) Indicator number 2 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II 43 ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) Indicator number 3 Table #3 of Annex I 43 ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) Indicator number 12 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II 43 ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) Indicator number 8 Table #3 of Annex I Not material ESRS S1-17 Incidents of discrimination paragraph 103 (a) Indicator number 7 Table #3 of Annex I 43 ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 104 (a) Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) 43 ESRS 2 – SBM3 – S2 Significant risk of child labor or forced labor in the value chain paragraph 11 (b) Indicators number 12 and n. 13 Table #3 of Annex I Phase-in ESRS S2-1 Human rights policy commitments paragraph 17 Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex I Phase-in 50 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Disclosure Requirement and related datapoint Reference in the Sustainable Finance Disclosures Regulation (SFDR) Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page number / Material for Pamica ESRS S2-1 Policies related to value chain workers paragraph 18 Indicators number 11 and n. 4 Table #3 of Annex I Phase-in ESRS S2-1 non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 Indicator number 10 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) Phase-in ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8, paragraph 19 Delegated Regulation (EU) 2020/1816, Annex II Phase-in ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 Indicator number 14 Table #3 of Annex I Phase-in ESRS S3-1 Human rights policy commitments paragraph 16 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I Not material ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines paragraph 17 Indicator number 10 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) Not material ESRS S3-4 Human rights issues and incidents paragraph 36 Indicator number 14 Table #3 of Annex I Not material ESRS S4-1 Policies related to consumers and end-users paragraph 16 Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex I Not material ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 Indicator number 10 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) Not material ESRS S4-4 Human rights issues and incidents paragraph 35 Indicator number 14 Table #3 of Annex I Not material ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) Indicator number 15 Table #3 of Annex I 45 ESRS G1-1 Protection of whistle-blowers para- graph 10 (d) Indicator number 6 Table #3 of Annex I 45 ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) Indicator number 17 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II 46 ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b) Indicator number 16 Table #3 of Annex I 46 (IRO-2-56) 51 2025 Annual ReportPamica Overview Operations Board of Directors’ ReportCorporate governance Financial statements Other information
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Financial statements Financial statements Consolidated financial statements ......................... 53 Parent Company financial statements .................... 57 Notes to the financial statements ........................... 61 The Board of Directors’ certification ....................... 86 Auditor’s Report ................................................ 87 Auditor’s review of the Sustainability Report ............ 89 52Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Group Statement of profit or loss and other comprehensive income January 1 – December 31, MSEK Note 2025 2024 Continuing operations 1 Net sales 3, 4 5,114.2 4,534.9 Other operating income 5 38.0 60.0 5, 152.2 4,594.9 Capitalized expenditures 5.2 6.8 Raw materials and consumables -2,328.9 -2,044.5 Other external expenses 6 -654.3 -554.8 Personnel costs 7 -1,547.6 -1,457.4 Other operating expenses 8 -74.1 -31.3 Participations in profit or loss of associates 15 -2.6 -0.7 EBITDA 549.9 513.0 Depreciation/amortization and impairment of property, plant and equipment, intangible assets and right-of-use assets, excl. acquisition-related surpluses 13, 14, 31 -235.2 -2 3 7.3 EBITA 314.7 275.7 Depreciation/amortization and impairment of acquisition-related surpluses -148.9 -81.5 Impairment of goodwill -136.1 -336.0 Operating profit/loss (EBIT) 29.7 -141.7 Finance income 9 19.5 167.9 Finance costs 9 -199.5 -206.4 Net financial items -179.9 -38.5 Loss before tax -150.2 -180.3 Tax 10 -25.8 -19.2 Profit/loss for the year from continuing operations -175.9 -199.4 Discontinued operations 38 Loss for the period from discontinued operations, net after tax 13.7 -183.7 Loss for the year -162.2 -383.2 January 1 – December 31, MSEK Note 2025 2024 Other comprehensive income Items that have been or may be reclassified to profit or loss for the year Translation differences on translation of foreign subsidiaries -22.5 -2.3 Other comprehensive income for the year -22.5 -2.3 Comprehensive income for the year -184.7 -385.5 Profit/loss for the year from continuing operations and discontinued operations Attributable to: Parent Company shareholders -161.7 -384.6 Non-controlling interests -0.5 1.4 Loss for the year -162.2 -383.2 Comprehensive income for the year Attributable to: Parent Company shareholders -184.1 -386.0 Non-controlling interests -0.6 0.5 Comprehensive income for the year -184.7 -385.5 Earnings per share 12 Before dilution for continuing operations, SEK -1.89 -2.14 After dilution for continuing operations, SEK -1.89 -2.14 Before dilution including discontinued operations, SEK -1.76 -4.10 After dilution including discontinued operations, SEK -1.76 -4.10 Weighted average number of shares outstanding 104,481,761 93,392,560 53 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Group Statement of financial position MSEK Note 2025 2024 Assets Intangible assets 13 3,962.7 4,034.6 Property, plant and equipment 14 222.8 257.5 Right-of-use assets 31 485.6 530.6 Participations in associates 15 7.3 6.1 Shares and participations 16, 29 22.2 6.6 Non-current receivables 17 16.2 9.1 Deferred tax assets 11 11.6 19.5 Total non-current assets 4,728.4 4,864.0 Inventories 18 474.7 521.4 Current tax assets 18.5 25.7 Accounts receivable 29, 30 624.5 552.5 Prepaid expenses and accrued income 19 104.9 138.3 Contract assets 20 28.1 17.2 Other receivables 17 42.3 26.0 Cash and cash equivalents 21 200.1 148.8 Total current assets 1,493.1 1,429.8 Assets held for sale 0.0 20.1 Total assets 32 6,221.5 6,313.9 Equity Share capital 22 0.7 0.7 Other contributed capital 2,926.5 2,793.2 Reserves -22.2 0.4 Retained earnings including profit for the year -544.2 -378.2 Equity attributable to Parent Company shareholders 2,360.8 2,416.1 Non-controlling interests 35 1 7.1 1 7.8 Total equity 2,378.0 2,433.9 MSEK Note 2025 2024 Liabilities Non-current interest-bearing liabilities 23, 29, 30 1,738.2 1,702.3 Non-current lease liabilities 23, 29, 30, 31 3 3 7.4 387.4 Non-current earn-out 29, 30 14.6 13.7 Non-current minority options 29, 30 31.9 119.3 Other non-current liabilities 25, 29, 30 7.9 8.7 Provisions 24 5.6 10.0 Deferred tax liabilities 10, 11 268.0 275.2 Total non-current liabilities 2,403.7 2,516.8 Current interest-bearing liabilities 23, 29, 30 25.8 41.2 Current lease liabilities 23, 29, 30, 31 158.7 155.5 Current earn-outs 29, 30 18.3 32.8 Current minority options 29, 30 109.7 0.0 Accounts payable 29, 30 374.6 406.1 Current tax liabilities 10, 11 73.3 68.7 Other current liabilities 26 172.6 170.8 Accrued expenses and deferred income 27 310.8 278.6 Contract liabilities 28 196.1 164.8 Total current liabilities 1,439.8 1,318.4 Liabilities attributable to assets held for sale 0.0 44.8 Total liabilities 32 3,843.5 3,880.0 Total equity and liabilities 6,221.5 6,313.9 54 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Group Statement of changes in equity Equity attributable to Parent Company shareholders MSEK Share capital Other contributed capital Translation reserve Equity brought forward including profit for the year Total Non- controlling interests Total equity Opening equity, Jan 1, 2025 0.7 2,793.3 0.4 -3 78.1 2,416.2 1 7.8 2,434.0 Reversal of items in equity -18.4 18.4 Loss for the year -161.7 -161.7 -0.5 -162.2 Other comprehensive income for the year -22.5 -22.5 -0.1 -22.7 Comprehensive income for the year 0.0 0.0 -22.5 -161.7 -184.2 -0.6 -184.8 Transactions with the Group’s shareholders Warrants, net 0.4 0.4 0.4 Shareholders’ contributions 0.0 0.0 0.0 Non-cash issue 0.0 147.9 147 .9 147 .9 Offset issue 0.0 3.8 3.8 3.8 Capital contributions, associates -0.6 -0.6 -0.6 Acquisition of shares in subsidiaries from non- controlling interests, existing controlling interest -0.1 -0. 1 -0.2 -0.3 Sales of shares in subsidiaries to non- controlling interests, existing controlling interest -0.0 -0.0 0.0 -0.0 Revaluation of minority options -22.3 -22.3 -22.3 Transactions with non-controlling interests -0.1 -0. 1 0.1 0.0 Total transactions with the Group’s shareholders 0.0 151.7 0.0 -22.7 129.0 -0. 1 128.9 Closing equity, Dec 31, 2025 0.7 2,926.5 -22.2 -544.2 2,360.9 1 7.1 2 ,3 78.1 Equity attributable to Parent Company shareholders MSEK Share capital Other contributed capital Translation reserve Equity brought forward including profit for the year Total Non- controlling interests Total equity Opening equity, Jan 1, 2024 0.6 2,612.5 2.5 62.5 2 ,678.1 10.0 2,688. 1 Adjustment of opening equity due to correction of error 1) -13.4 -13.4 0.0 -13.4 Loss for the year -384.6 -384.6 1.4 -383.2 Other comprehensive income for the year -2.1 -2 .1 -0.2 -2.3 Comprehensive income for the year 0.0 0.0 -2 .1 -384.6 -386.7 1.2 -385.5 Transactions with the Group’s shareholders Warrants, net -0.4 -0.4 -0.4 Shareholders’ contributions 2.9 2.9 2.9 Offset issue 0.1 1 7 7.7 1 7 7. 8 1 7 7. 8 Capital contributions, associates -1.9 -1.9 -1.9 Dividends paid 0.0 -0.5 -0.5 Acquisition of shares in subsidiaries from non- controlling interests, existing controlling interest 0.3 0.3 -0.7 -0.4 Sales of shares in subsidiaries to non- controlling interests, existing controlling interest -8.4 -8.4 8.4 0.0 Minority options, future acquisitions from non- controlling interests -41.6 -41.6 -4.1 -45.7 Revaluation of minority options 12.9 12.9 12.9 Transactions with non-controlling interests -3.6 -3.6 3.6 0.0 Total transactions with the Group’s shareholders 0.1 180.7 0.0 -42.6 138. 1 6.7 144.8 Closing equity, Dec 31, 2024 0.7 2,793.2 0.4 - 3 78.1 2,416. 1 1 7. 8 2,434.0 1) Opening equity a t January 1, 2024 and profit for the period for 2024 were adjusted due to the correction of an error from last year. For more information, refer to Note 1 Significant accounting policies 55 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Group Statement of cash flows January 1 – December 31, MSEK Note 2025 2024 Operating activities Loss before tax, continuing operations -150.2 -180.3 Profit/loss before tax, discontinued operations 38 13.9 -183.4 Adjustments for non-cash items: 36 590.4 645.6 Income tax paid -40.8 -11.2 Increase (-) / Decrease (+) in inventories 3 7.8 -7.4 Increase (-) / Decrease (+) in operating receivables -67.8 33.3 Increase (+) / Decrease (-) in operating liabilities 53.3 147.7 Cash flow from operating activities 436.7 444.3 Investing activities Acquisition of property, plant and equipment -52.9 -71.3 Divestment of property, plant and equipment 9.2 11.4 Acquisition of intangible assets -21.7 -48.3 Acquisition of subsidiaries/operations, net effect on cash flow 2 27.7 -94.0 Divestment of subsidiaries/operations, net effect on cash flow -2.8 0.9 Acquisition and divestment of other financial assets -3.6 -1.7 Cash flow from investing activities -44. 1 -203.0 January 1 – December 31, MSEK Note 2025 2024 Financing activities New share issue/warrants 0.4 131.0 Net change in overdraft facilities/credit facilities 23 -222.8 -175.0 Shareholders’ contributions received 0.0 2.9 Borrowings 23 246.4 1,480.6 Amortization of debt 23 -156.0 -1,392.4 Amortization of lease liability 23 -158.7 -141.7 Amortization of debt for earn-out and minority options 29 -44.8 -119.8 Dividends paid to non-controlling interests 0.0 -0.5 Cash flow from financing activities -335.5 -214.8 Cash flow for the year 5 7.0 26.4 Cash and cash equivalents at the beginning of the year 150.6 121.8 Exchange differences in cash and cash equivalents -7.5 2.4 Cash and cash equivalents at end of the year 21 200. 1 150.6 56 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Parent Company Statement of profit or loss and other comprehensive income MSEK Note 2025 2024 Net sales 3 33.6 32.4 Other operating income 5 0.1 0.2 33.7 32.6 Other external expenses 6 -71.6 -20.9 Personnel costs 7 -31.6 -35.5 Other operating expenses 8 -0.1 0.0 Operating loss -69.6 -23.8 Profit/loss from financial items Profit/loss from participations in Group companies 33 -299.4 -416.2 Interest income and similar profit/loss items 9 145.8 118.7 Interest expenses and similar profit/loss items 9 -132.7 -125.5 Loss after financial items -355.9 -446.7 Appropriations Group contributions received 98.1 21.1 Provision to tax allocation reserve -5.2 0.0 Loss before tax -263.0 -425.6 Tax 10 -3.2 0.0 Loss for the year -266.3 -425.6 MSEK Note 2025 2024 Loss for the year -266.3 -425.6 Other comprehensive income for the year 0.0 0.0 Comprehensive income for the year -266.3 -425.6 57 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Parent Company Balance sheet MSEK Note 2025 2024 Assets Non-current assets Financial assets Participations in Group companies 35 2,981.0 3,130.6 Receivables from Group companies 1,320.1 1,205.7 Total financial assets 4,301. 1 4,336.3 Total non-current assets 4,301. 1 4,336.3 Current assets Accounts receivable 0.9 0.0 Receivables from Group companies 785.2 638.9 Other receivables 17 1.7 1.6 Prepaid expenses and accrued income 19 3.8 42.0 Total current receivables 791.6 682.5 Cash and bank balances 21 69.1 0.0 Total current assets 860.7 682.5 Total assets 5, 161.8 5,018.8 MSEK Note 2025 2024 Equity and liabilities Equity 22 Restricted equity Share capital 0.7 0.7 Unrestricted equity Retained earnings -672.0 -246.8 Share premium reserve 3,894.8 3,743.1 Loss for the year -266.3 -425.6 Total equity 2,957 .1 3,071.3 Untaxed reserves 5.6 0.4 Total untaxed reserves 5.6 0.4 Non-current liabilities Non-current interest-bearing liabilities 23 1,524.3 1,481.3 Total non-current liabilities 1,524.3 1,481.3 Current liabilities Current interest-bearing liabilities 23, 31 0.0 12.8 Accounts payable 7.4 10.6 Current tax liabilities 10, 11 4.2 2.1 Liabilities to Group companies 628.4 424.0 Other liabilities 26 1.1 4.9 Accrued expenses and deferred income 27 33.7 11.4 Total current liabilities 674.7 465.8 Total equity and liabilities 5, 161.8 5,018.8 58 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Parent Company Statement of changes in equity Restricted equity Unrestricted equity MSEK Share capital Share premium reserve Retained earnings Loss for the year Total equity Opening equity, Jan 1, 2025 0.7 3,743.1 -246.8 -425.6 3,071.3 Appropriation of profit according to AGM -425.6 425.6 0.0 Total comprehensive income for the year -266.3 -266.3 Warrants, net 0.4 0.4 Non-cash issues 0.0 3.8 3.8 Offset issues 0.0 147.9 1 47.9 Closing equity, Dec 31, 2025 0.7 3,894.8 -672.0 -266.3 2,957 .1 Restricted equity Unrestricted equity MSEK Share capital Share premium reserve Retained earnings Loss for the year Total equity Opening equity, Jan 1, 2024 0.6 3,573.7 5.9 -252.3 3,327 .9 Appropriation of profit according to AGM -252.3 252.3 0.0 Total comprehensive income for the year -425.6 -425.6 Warrants, net -0.4 -0.4 Offset issues 0.1 169.4 169.5 Closing equity, Dec 31, 2024 0.7 3,743.1 -246.8 -425.6 3,071.3 59 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Parent Company Cash flow statement January 1 – December 31, MSEK Note 2025 2024 Operating activities Loss before tax -355.9 -446.7 Adjustments for non-cash items: 36 331.6 398.8 Income tax paid -1.1 1.0 Increase (-)/Decrease (+) in operating receivables -7 7.8 -2 3 7.2 Increase (+)/Decrease (-) in operating liabilities 251.4 82.8 Cash flow from operating activities 148.2 -201.3 Investing activities Acquisition of subsidiaries -0.5 0.0 Shareholders’ contributions paid to subsidiaries -4.7 -184.5 Divestments of subsidiaries 9.1 0.0 Lending to subsidiaries -124.8 0.0 Amortization of debt to subsidiaries 0.0 242.2 Cash flow from investing activities -120.9 5 7.7 Financing activities New share issue 0.4 131.0 Net change in overdraft facilities -222.8 -175.0 Group contributions received 21.1 0.0 Borrowings 243.1 1,502.5 Amortization of debt -1,314.9 Cash flow from financing activities 41.8 143.6 Cash flow for the year 69.1 0.0 Cash and cash equivalents at the beginning of the year 0.0 0.0 Cash and cash equivalents at end of the year 21 69.1 0.0 60 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Notes Note 1. Significant accounting policies These consolidated financial statements were prepared in accor- dance with the Swedish Annual Accounts Act (1995:1554), RFR 1 Supplementary Accounting Rules for Groups, IFRS® Accounting Standards and IFRS Interpretations Committee interpretations (IFRS IC) as endorsed by the EU. The Parent Company applies the same accounting policies as the Group except in the cases listed in the section “Parent C ompany accounting policies. ” The Annual Report and these consolidated financial state- ments were approved by the Board of Directors and CEO for publication on April 29, 2026. The consolidated statement of profit or loss and other comprehensive income and statement of financial position and the Parent Company’s income statement and balance sheet will be presented for adoption at the Annual General Meeting to be held on May 26, 2026. Measurement bases applied in preparing the financial statements Assets, provisions and liabilities are recognized at amortized cost unless otherwise stated below. Functional and presentation currency The Parent Company’s functional currency is Swedish kronor (SEK), which also comprises the presentation currency for the Par- ent Company and the Group. This means that the financial state- ments are presented in Swedish kronor. Unless otherwise stated, all amounts have been rounded so that they can be expressed in millions of Swedish kronor (MSEK), with one decimal point. Judgements and estimates in the financial statements Preparing the financial statements in accordance with IFRS requires company management to make judgements and esti- mates, and to make assumptions that impact the application of the accounting policies and the recognized amounts of assets, liabilities, income and expenses. The actual outcome may d eviate from these estimates and judgements. Judgements made by company management that have a material effect on the financial statements, and estimates made that may result in substantial adjustments to the following year’s financial statements, are described in greater detail in Note 39 Significant estimates and judgements. Significant accounting policies applied The accounting policies set out below, unless otherwise stated, were applied consistently to all periods presented for all entities included in the financial statements. Changes in accounting policies and disclosures In 2025, there were no new standards or amendments to stan- dards that required changes to the accounting policies or valua- tion principles. Other amendments are not assessed to impact the Group’s policies to any material extent. Future IFRS standards or interpretations that have not come into effect were not applied in advance. Pamica is currently evaluating the effect of the introduction of IFRS 18. The stan- dard is mainly expected to affect the presentation and disclo- sure requirements for the financial statements, in particular the statement of comprehensive income, the statement of cash flows and disclosures of alternative performance measures. Correction of error During the year, the portfolio company Alfa identified an error attributable to incorrect profit recognition for projects in prog- ress, which meant that Raw materials and consumables in the income statement and contract assets in the balance sheet were previously recognized incorrectly . The total correction amount had an impact amounting to MSEK –36.1, of which MSEK –4.3 impacts Raw materials and consumables in the 2025 financial year and MSEK –14.9 in the comparative period of 2024. The cor- rection was recognized in accordance with IAS 8, which means that the error was corrected retrospectively by restating compar- ative figures. The part of the correction relating to periods before 2024 was recognized as an adjustment to the opening balance of equity for the beginning of 2024. Deferred tax was taken into account and the correction had no impact on cash flow. A correction need was identified in the portfolio company PPP’s accounting of media income during the year. In the past, income was recognized gross according to the principal model. A review of contracts and performance obligations showed that the company does not control the underlying services prior to trans- fer to the customer and therefore serves as an agent under IFRS 15. Accordingly , income is to be recognized net. As a result of the correction, Net sales and Raw materials and consumables were previously recognized as amounts that were too high. The result is unchanged. Cash flows are not affected since the change relates to gross versus net recognition of the same transactions. In accor- dance with IAS 8, a correction was made by retrospectively calcu- lating comparative figures and affected the accounts by MSEK 92.7 in lower reported Net sales and MSEK 92.7 in lower Raw materials and consumables. From the current year onwards, all media income is recognized according to the agent model. Operating segment Segment reporting is based on the internal reporting provided to the chief operating decision maker. The company’s Chief Executive Officer (CEO) is a member of Group management and has been defined as the chief operating decision maker. The CEO allocates resources and monitors the performance of the operating segments based on the financial information from the legal entities. The outcomes of net sales, adjusted EBITA and EBITA are reviewed and analyzed when the CEO makes strate- gic decisions and decisions on the allocation of resources. The operating segments that have been identified are: Industry , S ervices and Innovations. For further information about the Group’s operating segments, refer to Note 4 Operating segments. Consolidation principles and business combinations Business combinations The Group assesses whether each transaction involves a business combination or an asset acquisition. All significant acquisitions that took place during the year are deemed to be business combi- nations. The acquisition method is applied to the recognition of the Group’s business combinations. The purchase consideration for the acquisition of a subsidiary comprises the fair value of the initial purchase consideration paid through a combination of cash, promissory notes and, where applicable, estimated contin- gent earn-outs and call and put options (minority option) to own- ers with non-controlling interests. This provides an estimated fair value of the assets acquired and liabilities assumed, as well as the surpluses arising on acquisition. All transaction costs for business combinations were expensed in operating profit. Refer to Note 2 Business combinations for further information. Subsidiaries The consolidated financial statements include subsidiaries over which the Group directly or indirectly exercises control. Sub- sidiaries are included in the consolidated financial statements from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Earn-outs Earn-outs are measured at fair value on the acquisition date. A probability assessment of the nominal amount of the liability for future payments, and a present value calculation by dis- counting based on the acquired entity’s discount rate, are per- formed every quarter. Changes in value are recognized in profit or loss as Finance income or Finance costs. Refer to the section Contingent earn-outs in Note 29 Measurement of financial assets and liabilities for further information. Refer also to the section Maturity analysis for Contingent earn-outs in Note 30 Financial risks and risk management. Minority options (call and put options issued to owners with non-controlling interests) When the Group does not acquire 100% of the shares in a sub- sidiary , the Group and the minority shareholders enter into a shareholders’ agreement. The shareholders’ agreement includes, where applicable, terms and conditions related to the Call and Put Options for the purchase of non-controlling interests, defined as Minority options in the Consolidated financial state- ments, which entitle the parties to sell or acquire the minority’s shares at a point in time of approximately 3 to 15 years after the shareholders’ agreement was signed. The purchase consider- ation when the option is exercised is normally calculated on the basis of an agreed performance measure multiplied by a 61 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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valuation multiple adjusted for the net indebtedness of the enti- ty . Since the minority’s holding in Group must be acquired (if the option is exercised) under the conditions described above, the value of the commitment to acquire the minority shares is recognized in Other non-current and current liabilities instead of as a minority interest in Equity . Put options issued to owners with non-controlling interests refer to agreements that give the owner the right to sell partici- pations in the subsidiary at fair value at a future period in time. Call options issued to owners with non-controlling interests refer to agreements that give the Group the right to purchase participations in the subsidiary at fair value at a future period in time. The company has made a policy choice for these options and recognizes changes in fair value in Equity . The amount that may be paid if the option is exercised is ini- tially recognized at the present value of the exercise price appli- cable at the point in time when the option can first be exercised as a financial liability . Valuation (Level 3) of the option takes place continuously , and changes are recognized directly in Equi- ty . If the option expires without being exercised, the liability is derecognized and a corresponding adjustment to Equity is made. Refer to the section Minority options in Note 29 Measurement of financial assets and liabilities for further information. Transactions with non-controlling interests The Group treats transactions with non-controlling interests as transactions with the Group’s shareholders. Transactions with non-controlling interests are recognized in Equity . Associates All associates are recognized according to the equity method. Foreign currency Transactions in foreign currency Transactions in foreign currency are translated into the func- tional currency at the exchange rate on the transaction date. Financial statements of foreign operations Assets and liabilities in foreign operations, including goodwill and other consolidated surpluses and deficits, are translated from the functional currency of the foreign operations to the Group’s presentation currency (SEK) at the exchange rate on the balance sheet date. Income and expenses of a foreign opera- tion are translated into SEK at an average exchange rate for the year. Translation differences that arise on currency translation of foreign operations are recognized in other comprehensive income and accumulated in the translation reserve in Equity . Income recognition Performance obligations and principles of income recognition The Group’s income primarily derives from the sale of goods and performance of service contracts. Income is recognized when the Group satisfies a performance obligation, which is when promised goods or services are delivered to the customer and control of the goods or services is passed to the customer. The Group has performance obligations that are satisfied both over time and at a point in time. In contracts where the Group arranges for a third party to provide a good or service to the customer, such as media space, the Group serves as an agent. In these cases, the Group does not have control over the goods or services before they are trans- ferred to the customer. Accordingly , income is recognized at the net amount received by the Group for acting as an intermediary and this corresponds to the intermediary income recognized. Products and services transferred at a point in time Income pertains primarily to contracts where performance obli- gations concern the delivery of finished goods to customers when control is passed upon delivery of the finished good. Income comprises products manufactured by the company and sales of finished goods for resale. The pricing model consists of fixed amounts, list prices or specific customer price lists. The Group has volume-based discounts, right of returns for custom- ers and guarantees to only a limited extent. There are some guarantees and these are predominantly of an “assurance” type, meaning that the guarantee does not constitute a separate per- formance obligation and therefore does not affect income recog- nition, and instead is recognized as an expense or provision. Products and services transferred over time Service contracts are recognized over time as the customer receives and consumes the benefits of the service while at the same time the Group satisfies the obligation. Income is also rec- ognized over time if the Group creates or improves an asset that the customer already controls, which is common for the Group’s construction contracts. The income from services and construc- tion contracts recognized over time is based on progress toward complete satisfaction of each performance obligation. This income is then calculated based on the share of costs generated compared with the total estimated costs for each performance obligation Under fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the value of the products or services rendered exceed the payment, a contract asset is recognized. If the value of the payments exceed the ser- vices rendered, a contract liability is recognized. Income from service and maintenance contracts and sub- scriptions is recognized on a straight-line basis over the contract period. Income pertains to contracts via quote and acceptance proceedings based on an established and agreed price list. Income pertains primarily to agreements under which the Group provides services over a longer period of time in accordance with the customer contract. Refer to Note 3 Net sales for net sales in each category . Payment terms Invoicing usually takes place in connection with delivery and is normally due for payment within 30–90 days. Leases When a contract is signed, the Group assesses whether the con- tact is, or contains, a lease. Upon lease commencement or reas- sessing a lease that contains several lease and non-lease compo- nents, the Group allocates the consideration payable to each component on the basis of the relative stand-alone prices. How- ever, for leases of buildings and land where the Group is the lessee, the Group has decided not to separate non-lease compo- nents and recognizes lease and non-lease components that are paid in a fixed amount as a single lease component. Right-of-use assets The right-of-use asset is initially measured at cost, which is the initial amount of the lease liability and lease payments at or prior to commencement plus any initial direct costs. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the use- ful life of the right-of-use asset or the end of the lease term, which for the Group is normally the end of the lease term. In the rare cases where the cost of the right-of-use asset reflects the Group’s intention to exercise an option to purchase the underly- ing asset, the asset is depreciated to the end of its useful life. The lease liability is initially measured at the present value of the lease payments payable over the lease term. The lease term is the non-cancellable period plus periods covered by an exten- sion option if exercise of that option by the lessee on the com- mencement date is reasonably certain. For short-term leases (term of 12 months or less) or low-value leases (less than MSEK 0.05), no right-of-use asset or lease lia- bility is recognized. Lease payments for these leases are recog- nized as an expense on a straight-line basis over the lease term under other external expenses. Refer to Note 31 Leases for further information. Taxes Income tax comprises current tax and deferred tax. Current tax is tax that is to be paid or received during the c urrent year. Deferred tax is calculated using the balance sheet method, based on temporary differences between the carrying amount and tax base of assets and liabilities. Deferred tax is calcu- lated through the application of the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets attributable to deductible temporary differenc- es and loss carryforwards are recognized only if it is probable these can be utilized. The value of the deferred tax assets is written down when it is no longer considered probable that they can be utilized. Refer to Note 10 Taxes and Note 11 Deferred tax for further information. Financial assets and liabilities Recognition and measurement of financial assets and financial liabilities All of the Group’s financial assets are measured at amortized cost except for shares and participations, which are measured at fair value. For more information on the fair value measurement of shares and participations, refer to Note 16 Shares and partici- pations. The Group’s financial liabilities are classified at amor- tized cost with the exception of Minority options and Contin- gent earn-outs, which are measured at fair value. Impairment of financial assets The Group’s impairment model is based on expected credit loss- es. The Group applies the simplified approach to the loss allow- ance for accounts receivable, whereby the allowance for expect- ed credit losses corresponds to the expected loss over the entire lifetime of the accounts receivable. Receivables are tested for impairment based on an individual assessment of credit risk when the receivable initially arises and then throughout its life- time. The companies in the Group assess credit risk using avail- able information on historical credit events, current circum- stancesand forecasts of future developments. Property, plant and equipment Owned assets Property , plant and equipment are recognized in the Group at cost less accumulated depreciation and any impairment. Property , plant, and equipment comprising parts with differ- ent useful lives are treated as separate components of property , plant, and equipment. Additional costs Additional costs that meet the asset criteria are included in the carrying amount of the asset. Costs for regular maintenance and repairs are recognized as expenses as they are incurred. Depreciation principles Depreciation takes place on a straight-line basis over the 62 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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estimated useful life of the asset since this reflects the expected consumption of the future economic benefits embodied in the asset, except for land, which is not depreciated as it is deemed to have an indefinite useful life. The estimated useful lives are: • Bu ildings, 20–50 years • L easehold improvements, 3–20 years • P lant and machinery , 3–25 years • E quipment, tools, fixtures and fittings, 3–5 years Intangible assets Goodwill Goodwill is measured at cost minus any accumulated impair- ment. Goodwill is distributed between the Group’s cash-gener- ating units, which are the company’s sub-groups, and is tested for impairment at least annually or when indications arise. Refer to Note 13 Intangible assets and Note 40 Significant e stimates and judgements for further information. Capitalized development costs Costs to create new or improved products or processes have been recognized as capitalized development costs if the product or process is technically and commercially feasible and the enti- ty has sufficient resources to complete the development and subsequently use or sell the intangible asset. The carrying amount includes all directly attributable costs for materials, purchases of services and employee benefits. Recognized development costs are presented at cost less accumulated amortization and any impairment. Other intangible assets Patents, licenses, trademarks and similar rights, customer rela- tionships and other intangible assets acquired are recognized at cost less accumulated amortization and impairment. Trademarks are not amortized on a straight-line basis, except when they have a definite useful life. Trademarks that are not subject to straight-line amortization are tested for impairment every year. Trademarks with indefinite useful lives are key assets for the subsidiaries that have measured these assets. Work on improving and developing trademarks is ongoing. Net cash flows generated by trademarks are not expected to cease in the foreseeable future. Trademarks are therefore regarded as having indefinite useful lives. Projects in progress are included in the item other intangible assets until each project is completed and are not amortized. Instead, they are tested for impairment annually . Amortization principles Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of the intangible assets, provided such useful lives are indefinite. The useful lives are tested at least once annually . Intangible assets with finite useful lives are amortized from the date when they are available for use. The estimated useful lives are: • C apitalized development expenditure, 5 years • P atents and licenses, 5–10 years • Tr ademarks (with finite useful lives amortized over their useful life), 20 years–indefinite • O ther intangible assets, 5 years Inventories Inventories are stated at the lower of cost and net realizable val- ue. The cost of inventories is calculated using the first-in, first- out (FIFO) method and includes costs incurred in connection with the acquisition of the inventory assets and bringing them to their present location and condition. For manufactured goods and work in progress, the cost includes a reasonable proportion of indirect costs based on normal capacity . Net realizable value is the estimated selling price in the ordi- nary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Employee benefits Short-term employee benefits are recognized as a cost when the service is rendered. Variable remuneration based on outcome and individual performance. The maximum period of notice for the CEO shall be 12 months if the company terminates employ- ment, and six months if the CEO terminates employment. Pensions The Group primarily has defined contribution pension plans. Most of the Group’s salaried employees are covered by the ITP plan, which is financed by pension insurance in, for example, Alecta or Collectum. According to a statement from the Swed- ish Financial Reporting Board, this is a defined benefit plan. The Group did not have access to such information that would make it possible to recognize this plan as a defined benefit plan. The ITP pension plan is thus recognized as a defined contri- bution plan in accordance with IAS 19. In addition, there are pension commitments, both for employees under collective bar- gaining agreements and for salaried employees, which are defined contribution and secured by payments of premiums to insurance companies. Incentive plan, warrants, LTIP In 2023 and 2025, the Parent Company issued warrants for cer- tain senior executives and other key employees of the Group. The warrants were issued to the participants at market value determined by the Black & Scholes valuation model. The war- rants are linked to the financial targets of the company in which the warrant holder is a senior executive or key employee. If these financial targets are not met, the Parent Company has the right to redeem the warrants. The Parent Company may also redeem the warrants in certain cases, for example, when a war- rant holder terminates their employment. The option program extends for three years and the warrant holders vest one-third of the warrants after each year. Only vested warrants may be transferred, but with pre-emption rights for the Parent Company . In the event of any future exercise of warrants, the Parent Company will receive proceeds corresponding to the exercise price, whereupon new shares will be issued and the exercise proceeds will be recognized as an increase in equity . For more information, refer to Note 7 Employees, personnel costs and remuneration of senior executives. Discontinued operations When the company announced its intention to divest the opera- tions of Safe Solutions, the criteria for applying IFRS 5 Non-cur- rent Assets Held for Sale and Discontinued Operations were met. Profit after tax from Discontinued operations is recognized on a separate line in the income statement. All assets included in the group are presented on a separate line under assets and all liabilities of the group are presented on a separate line under liabilities. The group is valued at the lower of the carrying amount and fair value less selling expenses. In the consolidated income statement, Safe Solutions is reported separately on the line “Discontinued operations” and prior periods have been restated according to the same princi- ples. In the balance sheet, the net assets of the operations are presented on the lines “Assets held for sale” and “Liabilities attributable to assets held for sale” . Balance sheets for prior years have not been restated. For more information, refer to Note 37 Discontinued operations. Parent Company accounting policies The Parent Company’s Annual Report has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board’s RFR 2 Accounting for Legal Entities. The differences that arise between the Parent Company’s and the Group’s accounting policies are attributable to the limited opportunities for the application of IFRS in the Parent Company as a result of the Swedish Annual Accounts Act and, in certain cases, taxation. Classification and presentation format The income statement and balance sheet for the Parent Company are presented in accordance with the format stipulat- ed in the Swedish Annual Accounts Act. Participations in Group companies Participations in subsidiaries are recognized in the Parent Com- pany at cost less any impairment. Impairment testing takes place when there is an indication of a decline in value, and at least once annually . Transaction costs are included in the carrying amount. Income The Parent Company provides the subsidiaries with services, mainly in the form of accounting and business development. Income from services is recognized in the period in which the services are rendered. Sales take place at market prices. Financial instruments and hedge accounting The Parent Company has chosen not to apply IFRS 9 to legal entities. However, some of the principles in IFRS 9 are applica- ble, such as impairment, recognition/derecognition, criteria for when hedge accounting may be applied and the effective inter- est method for interest income and interest expenses. In the Parent Company , financial assets are measured at cost less any impairment and financial current assets according to the lowest value principle. The IFRS 9 impairment rules are applied to financial assets measured at amortized cost. Impairment on unlisted shareholdings that are not investments in subsidiaries, associates or joint arrangements are recognized if the present value of expected future class flows is less than the carrying amount. The Parent Company does not hold any listed shares. Liquidity is managed through an intra-Group cash pool and is classified as a current receivable or current liability from Group companies. Leases The Parent Company does not apply IFRS 16 in accordance with the exemption in RFR 2. Lease payments are recognized on a straight-line basis over the reporting period. Taxes In the Parent Company , untaxed reserves are recognized in the balance sheet without being divided between Equity and Deferred tax liabilities, unlike in the Group. Similarly , in the Parent Company’s income statement, a portion of appropria- tions is not allocated to deferred tax expense. Appropriations Group contributions received and paid are recognized as appropriations. 63 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 2. Business combinations and divested operations The Group carried out three significant business combinations in 2025. HTSM Eskilstuna is a portfolio company , while ABC Karossen and ALMA Electronic are add-on acquisitions to existing portfolio companies. HTSM Eskilstuna serves as a traffic coordinator and con- struction traffic manager in connection with work being per- formed on and around railway tracks. ABC Karossen manufactures and assembles custom carriers, flatbeds, covers and special wagons in sandwich constructions and is an add-on acquisition of SKAB-Gruppen. ALMA Electronics produces and sells subcontracted circuit board solutions and is an add-on acquisition of Alltronic. The total purchase consideration amounted to MSEK 147.9 and consisted of newly issued shares on the basis of a non-cash issue. The acquired entities provided the Group with cash and cash equivalents of MSEK 56.8 and in connection with the acquisitions, existing interest-bearing debt of MSEK 124.8 was repaid, which is recognized as amortization of debt in the con- solidated statement of cash flows. If the acquisitions had taken place on January 1, 2025, they would have contributed net sales of MSEK 155.5, adjusted EBIT- DA of MSEK 60.3, adjusted EBITA of MSEK 58.2 and profit for the year of MSEK 31.8. The acquisitions did not contribute to the consolidated statement of profit or loss and other compre- hensive income. In 2025, the Group divested the portfolio company Logiwaste (October 31), all subsidiaries of V efi Holding AB (November 18) and all subsidiaries of Safe Solutions Consulting i Sverige Hold- ing AB (January 31), already recognized as a discontinued opera- tions, refer to Note 38 Discontinued operations for more information. As part of the total purchase consideration, the Group received, in addition to cash consideration, a promissory note of MSEK 12.2 in connection with V efi Holding divesting all sub- sidiaries and a preference share in Logiwaste measured at fair value of MSEK 10.9 on the transaction date. These are recog- nized as financial assets in the consolidated balance sheet. Divested operations in 2025 contributed reported net sales of MSEK 139.3 (176.1), adjusted EBITDA of MSEK 0.7 (23.9) and adjusted EBITA of MSEK -5.7 (0.7). Acquired assets Dec 18, 2025 HTSM Dec 18, 2025 Other acquisitions 2025 Total Group Purchase consideration Cash and cash equivalents 0.0 0.0 0.0 Non-cash issue (3,517,009 shares) 103.3 44.6 147.9 Total purchase consideration 103.3 44.6 1 47.9 Recognized amount on identified net assets Property, plant and equipment 0.0 8.1 8.1 Intangible assets 52.3 21.4 73.7 Inventories 0.0 13.6 13.6 Accounts receivable 4.0 10.3 14.3 Other current assets 3.3 0.8 4.1 Cash and cash equivalents 46.4 10.4 56.8 Interest-bearing liabilities -94.8 -30.0 -124.8 Earn-outs -4.4 -9.3 -13.7 Other non-current liabilities -13.4 -6.4 -19.8 Current liabilities -10.3 -14.3 -24.6 Total identified net assets -16.9 4.6 -12.3 Goodwill 120.2 40.0 160.2 Transaction costs 0.1 0.2 0.3 No significant difference was identified between the fair value of accounts receivable in relation to the gross contract amounts. The primary justification for goodwill is future earnings capaci- ty , growth and synergies. Transaction costs amounted to MSEK 0.3 (7.6) and are recog- nized under other external expenses in the consolidated state- ment of profit or loss and other comprehensive income. Acquired assets per segment Services Industry Total Group Purchase consideration Cash and cash equivalents 0.0 0.0 0.0 Non-cash issue (3,517,009 shares) 103.3 44.6 147.9 Total purchase consideration 103.3 44.6 1 47.9 Recognized amount on identified net assets Property, plant and equipment 0.0 8.1 8.1 Intangible assets 52.3 21.4 73.7 Inventories 0.0 13.6 13.6 Accounts receivable 4.0 10.3 14.3 Other current assets 3.3 0.8 4.1 Cash and cash equivalents 46.4 10.4 56.8 Interest-bearing liabilities -94.8 -30.0 -124.8 Earn-outs -4.4 -9.3 -13.7 Other non-current liabilities -13.4 -6.4 -19.8 Current liabilities -10.3 -14.3 -24.6 Total identified net assets -16.9 4.6 -12.3 Goodwill 120.2 40.0 160.2 Transaction costs 0.1 0.2 0.3 Divested operations MSEK 2025 Total Group Property, plant and equipment 25.5 Intangible assets 23.0 Right-of-use assets 0.0 Financial assets 1.9 Inventories 22.4 Other current assets 26.1 Cash and cash equivalents 11.6 Non-current liabilities and provisions -2.0 Current liabilities -29.7 Divested net assets 78.7 Purchase consideration Cash consideration 15.2 Promissory note (non-cash consideration) 12.2 Preference share (non-cash consideration) 10.9 Total purchase consideration 38.3 Divested net assets -78.7 Realized translation reserve (foreign operations) 6.1 Transaction costs -3.4 Capital gains/losses recognized in profit or loss - 3 7. 8 Impact on the Group’s cash and cash equivalents Cash consideration 15.2 Divested cash and cash equivalents -11.6 Transaction costs -3.4 Impact on the Group’s cash and cash equivalents 0.2 64 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 3. Net sales Income streams The Group generates income from sales in its three operating segments: Industry , Services and Innovations. A breakdown of income by product and service area and geographic market is presented in the table below. Group items refers to Pamica Group AB and eliminations. For further information on operat- ing segments, refer to Note 4 Operating segments. Group Operating segment Industry Services Innovations Group items Total January 1 – December 31, MSEK 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Geographic market Sweden 791.1 491.9 2,268.8 2,161.4 179.5 125.0 3.8 -1.8 3,243.2 2,776.5 Other Nordic countries 208.5 232.8 323.4 31 7.1 9.3 2.9 0.0 0.0 541.2 552.7 Rest of Europe 541.7 3 7 7.4 71.6 91.9 139.5 154.7 0.0 0.0 752.8 624.0 Asia/Australia 71.8 72.2 19.4 25.3 33.2 40.0 0.0 0.0 124.4 13 7.5 North America 40.9 26.4 56.2 72.5 31 7.2 311.7 0.0 0.0 414.3 410.6 Other countries 1 7.2 18.9 13.3 10.8 7.8 4.0 0.0 0.0 38.3 33.6 Total geographic market and total operating segment 1,671.2 1,219.6 2,752.7 2,679.0 686.4 6 3 8.1 3.8 -1.8 5,114.2 4,534.9 Geographic breakdown of sales according to customer domicile. No single customer accounts for 10% or more of the Group’s total income. Group Operating segment Industry Services Innovations Group items Total January 1 – December 31, MSEK 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Product/service area Products and services transferred at a point in time 1,631.5 1,161.5 606.7 557.0 665.7 614.9 -1.4 -1.8 2,902.5 2,331.7 Products and services transferred over time 39.7 58.1 2,146.0 2,122.0 20.7 23.2 5.2 0.0 2,211.6 2,203.3 Total product/service area 1,671.2 1,219.6 2,752.7 2,679.0 686.4 6 3 8.1 3.8 -1.8 5,114.2 4,534.9 The Group comprises companies in many different industries with diverse operations that deliver both products and services. Most services are delivered over time and products are sold at a point in time. The Parent Company’s net sales mainly comprise manage- ment fees. 65 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 4. Operating segments The primary business activities with income and costs that have been identified consist of the Industry , Services and Innovations operating segments. The Industry operating segment consists of the portfolio companies Absortech, Alltronic, Artex, SKAB and Solideq. The portfolio company Logiwaste and the operating subsidiaries of V efi were divested during the year. The Services operating segment consists of the portfolio companies Alfa Mobility , Beans in Cup, IM Vision, PPP , Houser and Sappa. Freys Express was merged with Alfa Mobility during the year. The Innovations operating segment consists of the operating companies Delta of Sweden, EDAB, Micropol, Stapp and Waboba. Net sales, adjusted EBITA, EBITA and assets for each of the operating segments above represent more than 10% of the total net sales, adjusted EBITA, EBITA and assets for all operating segments. Total net sales reported by the three identified oper- ating segments comprise more than 95% of the Group’s total net sales, which means that no additional segments have needed to be identified. Earnings for the operating segments include directly attribut- able items and items that can be reasonably and reliably allocat- ed to the segments. The recognized items in the EBITA of the operating segments are measured in accordance with the EBITA monitored by the company’s chief operating decision maker (the CEO). Transactions between operating segments only take place at immaterial amounts. Any transactions that take place between the Group’s various operating segments are carried out with internal pricing based on market terms. Group items refers to Pamica Group AB and eliminations. Industry segment: The companies in the Industry segment produce and sell prod- ucts and systems that are often developed in close cooperation with customers. With a high level of technical expertise, these businesses add value for customers by strengthening their processes and end products. Absortech, Alltronic, Artex, Logiwaste, SKAB, Solideq and V efi are included in the segment, which in 2025 reported net sales of MSEK 1,671.2 and adjusted EBITA of MSEK 178.1. Of reported net sales and adjusted EBITA, the divested company Logiwaste and the operating subsidiaries in V efi contributed MSEK 139.3 (176.1) and MSEK -6.3 (-0.6), respectively Services segment: The companies in segment Services are service companies with strong positions in specific niches. Alfa Mobility , Beans in Cup, IM Vision, PPP , Houser and Sappa are included in the segment, which in 2025 reported net sales of MSEK 2,752.7 and adjusted EBITA of MSEK 129.5. Innovations segment: The companies in segment Innovations are niche companies with unique offerings and/or patents, with clear scalability and international potential. Delta of Sweden, EDAB, Micropol, Stapp and Waboba are included in the segment, which in 2025 reported net sales of MSEK 686.4 and adjusted EBITA of MSEK 152.9. Note 5. Other operating income Group MSEK 2025 2024 Grants received 6.7 6.4 Capital gains 4.1 6.1 Exchange gains 15.6 30.3 Capital gains/losses on divested operations 0.0 2.7 Other income 11.6 14.4 38.0 60.0 Grants received and other income Grants received largely relate to wage subsidies as well as el ectricity support and other income includes insurance c ompensation and tender support. Parent Company MSEK 2025 2024 Capital gains 0.1 0.2 Exchange gains 0.0 0.0 0.1 0.2 Operating segment 2025 2024 January 1 – December 31, MSEK Industry Services Innovations Group items Total Industry Services Innovations Group items Total Net sales 1,671.2 2,752.7 686.4 3.8 5,114.2 1,219.6 2,679.0 638.1 -1.8 4,534.9 Other operating income 11.4 20.7 5.8 0.1 38.0 16.6 29.0 14.2 0.2 60.0 Total income 1,682.7 2,773.4 692.2 3.9 5, 152.2 1,236.3 2,708.0 652.3 -1.6 4,594.9 Capitalized expenditures 2.0 1.5 1.6 0.0 5.2 3.5 0.9 2.4 0.0 6.8 Raw materials and consumables -868.2 -1,196.5 -265.0 0.9 -2,328.9 -625.9 -1,179.8 -239.0 0.2 -2,044.5 Other external expenses -162.7 -338.3 -111.3 -41.9 -654.3 -133.3 -335.4 -100.6 14.4 -554.8 Personnel costs -409.7 -963.4 -137.9 -36.6 -1,547.6 -321.2 -975.6 -125.2 -35.5 -1,457.4 Other operating expenses -47.0 -12.2 -14.3 -0.6 -74.1 -9.4 -14.7 -7.3 -0.0 -31.3 Participations in profit or loss of associates -1.7 -0.8 0.0 0.0 -2.6 -0.8 0.0 0.0 0.0 -0.7 EBITDA 195.3 263.6 165.3 -74.3 549.9 149.2 203.5 182.8 -22.5 513.0 Depreciation/amortization and impairment of property, plant and equipment, intangible assets and right-of-use assets, excl. acquisition-related surpluses -61.2 -157.3 -15.7 -1.0 -235.2 -62.9 -159.0 -14.1 -1.2 -2 3 7.3 EBITA 134. 1 106.3 149.6 -75.3 314.7 86.3 44.5 168.6 -23.7 275.7 Items affecting comparability 43.9 23.2 3.3 50.5 120.9 7.3 53.2 1.9 2.8 65.1 Adjusted EBITA 1 78.1 129.5 152.9 -24.8 435.6 93.6 9 7.7 170.6 -20.9 340.8 Adjusted EBITA margin, % 10.7 4.7 22.3 n/a 8.5 7.7 3.6 26.7 n/a 7.5 66 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 7. Employees, personnel costs and remuneration of senior executives Salaries and other remuneration, social security expenses and pension costs, specified by senior executives and other employees 2025 2024 MSEK Senior executives, Board and CEO Other employees Total Senior executives, Board and CEO Other employees Total Parent Company Salaries and other remuneration -15.8 -7.8 -23.5 -13.0 -9.6 -22.5 (of which, bonuses) - 0.3 0.0 -0.3 0.0 0.0 0.0 Social security expenses - 8.3 -4.1 -12.4 -7.6 -5.0 -12.7 (of which, pension costs) -3.2 -1.5 -4.7 -3.3 -1.9 -5.3 -24.1 -11.8 -35.9 -20.6 -14.6 -35.2 Subsidiaries Salaries and o ther remuneration -112.1 -969.2 -1,081.3 -116.5 -888.7 -1,005.2 (of which, bonuses) -1 0.7 -6.8 -1 7.5 -4.2 -4.1 -8.3 Social security expenses - 49.1 -350.7 -399.8 -46.9 -320.3 -367.2 (of which, pension costs) -18.5 -75.3 -93.8 -1 7.0 -69.4 -86.4 -161.2 -1,319.8 -1,481. 1 -163.4 -1,209.0 -1,372.4 Gr oup Salaries and o ther remuneration -127.9 -976.9 -1,104.8 -129.5 -898.2 -1,027.7 (of which, bonuses) -1 0.9 -6.8 -1 7.7 -4.2 -4.1 -8.3 Social security expenses - 57.4 -354.7 -412.1 -54.5 -325.4 -379.9 (of which, pension costs) -21.8 -76.8 -98.5 -20.3 -71.3 -91.6 -185.3 -1,331.6 -1,516.9 -184.0 -1,223.6 -1,407 .6 Average number of employees 2025 % women 2024 % women Parent Company Sweden 11 27% 11 27% 11 27% 11 27% Subsidiaries Sweden 1,594 29% 1,666 30% Other Nordic countries 194 48% 193 51% Rest of Europe 400 83% 477 83% Other countries 53 48% 54 50% Total, subsidiaries 2,241 41% 2,389 43% 2,252 41% 2,400 43% Gender distribution in company management Dec 31, 2025 Dec 31, 2024 % women % women Parent Company Board 50% 50% Other senior executives 20% 0% Group Boards 19% 18% Other senior executives 21% 35% Note 6. Fees and remuneration to auditors Group MSEK 2025 2024 KPMG Audit engagement -7.4 -7.4 Audit services in addition to audit engagement -1.7 -0.2 Tax advisory services -0.8 -0.2 Other assignments -0.7 -0.6 Other auditors Audit engagement -3.4 -2.9 Audit services in addition to audit engagement -0.1 0.0 Tax advisory services -0.4 0.0 Other assignments -0.1 -0.3 -14.6 -11.8 Parent Company MSEK 2025 2024 KPMG Audit engagement -1.4 -1.0 Audit services in addition to audit engagement -1.5 0.0 Tax advisory services -0.2 - 3.1 -1 .1 Audit engagement refers to the statutory audit of the Annual Report, consolidated financial statements and accounting records as well as the administration by the Board of Directors and the CEO, and audits and other reviews performed under agreement or contract. This includes other tasks incumbent on the auditors of the company as well as advice and other assis- tance arising from by observations made in the course of such an audit or the performance of such other tasks. 67 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 8. Other operating expenses Group MSEK 2025 2024 Exchange losses -34.8 -29.7 Capital losses -1.5 -1.6 Loss on divestment of subsidiaries - 3 7.8 - -74.1 -31.3 Parent Company MSEK 2025 2024 Exchange losses 0.0 0.0 Capital losses -0.1 0.0 - 0.1 0.0 Warrants issued by Pamica Dec 31, 2025 Dec 31, 2024 Number of warrants Corresponding number of shares Number of warrants Corresponding number of shares Outstanding at beginning of the period 81 7,987 81 7,987 903,468 903,468 Issued 878,450 878,450 0 0 Repurchased/redeemed -64,023 -64,023 -85,481 -85,481 Outstanding at end of the period 1,632,414 1,632,414 817 ,987 817 ,987 of which can be exercised 878,450 - Disclosures on warrants issued Each warrant carries entitlement to purchase one share. The option program does not entail any direct costs for the company . 2025 2024 2023 Maturity date Jul 15, 2028 N/A Mar 31, 2026 Total payments to Pamica Group if shares acquired, MSEK 0.7 0 44.6 Warrants issued by Pamica Dec 31, 2025 Dec 31, 2024 Maturity date Warrant price, SEK per warrant Exercise price, SEK per share Right to purchase no. of shares Number of warrants Corresponding number of shares Number of warrants Corresponding number of shares Mar 31, 2026 4.88 59.15 1.00 753,964 753,964 81 7,987 81 7,987 Jul 15, 2028 0.79 9.36 1.00 878,450 878,450 - - Maximum increase in number of shares in relation to shares outstanding at end of year, % 0.8 0.8 68 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 10 . Taxes Recognized in statement of profit or loss and other comprehensive income Group MSEK 2025 2024 Current tax expense (-) / tax income (+) Tax expense/income for the year -47.0 -29.8 - 47.0 -29.8 Deferred tax expense (-) / tax income (+) Deferred tax attributable to temporary differences 23.8 1 7.7 Deferred tax change in untaxed reserves -2.6 -7.1 21.2 10.6 Total recognized tax expense in the Group -25.8 -19.2 Parent Company MSEK 2025 2024 Current tax expense (-) / tax income (+) Tax expense/income for the year -3.2 0.0 -3.2 0.0 Deferred tax expense (-) / tax income (+) Deferred tax attributable to temporary differences 0.0 0.0 Deferred tax change in untaxed reserves 0.0 0.0 0.0 0.0 Total recognized tax expense in the Parent Company -3.2 0.0 Reconciliation of effective tax Group MSEK 2025 2024 Loss before tax -150.2 -180.3 Tax according to current tax rate for the Parent Company 30.9 20.6% 37.1 20.6% Effect of different tax rates in foreign subsidiaries 0.0 0.0% -0.3 -0.2% Non-deductible expenses -46.2 -30.8% -30.4 -18.4% Non-deductible impairment -27.8 -18.5% -69.2 -41.8% Non-taxable income 5.7 3.8% 35.4 21.4% Increase in loss carryforwards without corresponding capitalization of deferred tax 1.3 0.9% -2.0 -1.2% Use of previously non-capitalized loss carr yforward 10.5 7.0% 8.8 5.4% Tax attributable to prior years -2.4 -1.6% 0.2 0.1% Standard interest on tax allocation reserve -1.5 -1.0% -1.4 -0.8% Other information 3.6 2.4% 2.5 1.5% Recognized effective tax -25.8 -17.2% -19.2 -10.6% Parent Company MSEK 2025 2024 Loss before tax -263.0 -425.6 Tax according to current tax rate for the Parent Company 54.2 20.6% 87.7 20.6% Non-deductible expenses -62.9 23.9% -87.7 20.6% Non-taxable income 1.0 -0.4% 0.0 0.0% Assumed negative net interest income 2.6 -1.0% 0.0 0.0% Use of previously non-capitalized loss carryforward 1.9 -0.7% 0.0 0.0% Recognized effective tax -3.2 1.2% 0.0 0.0% Note 9. Net financial items Group MSEK 2025 2024 Finance income Interest income 2.0 2.2 Exchange gains 8.8 10.6 Capital gains/losses 0.0 0.1 Financial assets at fair value, net change 5.6 0.0 Revaluation of liabilities attributable to contingent considerations 2.9 153.7 Other finance income 0.9 1.3 2 0.1 1 67.9 Finance costs Interest expenses, financial liabilities -131.1 -118.9 Interest expenses, lease liabilities -22.7 -25.0 Other interest expenses -1.9 -3.6 Exchange losses -13.6 -10.1 Revaluation of liabilities attributable to contingent considerations -20.1 -38.3 Other finance costs -10.7 -10.5 -200. 1 -206.4 Net financial items are recognized in profit or loss -179.9 -38.5 Parent Company MSEK 2025 2024 Finance income Interest income, Group companies 144.8 11 7.0 Interest income, other 1.0 0.5 Exchange gains 0.0 1.2 145.8 118.7 Finance costs Interest expenses, Group companies -6.8 -8.9 Interest expenses, financial liabilities -114.7 -104.6 Exchange losses -0.8 -1.1 Other finance costs -10.4 -10.9 -132.7 -125.5 Net financial items are recognized in profit or loss 1 3.1 -6.7 Interest income and interest expenses except leases and earn- outs have been calculated using the effective interest method. 69 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Change in deferred tax 2025 MSEK Opening balance Recognized in profit for the year Acquisition/ Divestment of operations, net Exchange differences Reclassifications Closing balance Deferred tax liabilities Portion of untaxed reserves -66.0 -2.6 -3.5 0.0 0.0 -72.1 Intangible assets -205.8 30.4 -15.3 -0.2 0.0 -190.8 Property, plant and equipment -2.8 0.2 -1.1 0.0 0.0 -3.6 Right-of-use assets -101.6 7.8 0.0 0.0 0.0 -93.7 Other temporary differences -0.8 -0.1 0.3 0.0 -0.9 -1.5 - 3 7 7.0 35.8 -19.5 -0.2 -0.9 -361.7 Deferred tax assets Internal gain, inventories 3.6 -0.1 -0.1 0.0 -0.5 3.0 Capitalized loss carryforwards 1.9 -0.1 -0.1 -0.0 0.0 1.7 Lease liabilities 107.5 -8.4 0.0 -0.1 0.0 99.0 Provisions 0.0 0.0 0.0 0.0 0.0 0.0 Other temporary differences 8.1 -5.9 -0.4 -0.1 0.0 1.6 121. 1 -14.4 -0.6 -0.2 -0.5 105.4 Change in deferred tax 2024 MSEK Opening balance Recognized in profit for the year Acquisition/ Divestment of operations, net Exchange differences Reclassifications Closing balance Deferred tax liabilities Portion of untaxed reserves -47.1 -7.2 -11.7 0.0 0.0 -66.0 Intangible assets -201.4 16.0 -19.1 0.0 -1.3 -205.8 Property, plant and equipment -2.5 0.2 -0.4 0.0 0.0 -2.8 Right-of-use assets -98.1 -5.2 0.0 0.0 1.6 -101.6 Other temporary differences -4.5 1.1 0.2 0.0 2.5 -0.8 -353.7 4.9 -30.9 0.0 2.9 - 3 7 7.0 Deferred tax assets Internal gain, inventories 2.2 1.2 0.0 0.2 0.0 3.6 Capitalized loss carryforwards 2.3 -0.3 0.0 0.0 0.0 1.9 Lease liabilities 104.1 5.2 0.0 0.0 -1.8 107.5 Provisions 2.6 -2.6 0.0 0.0 0.0 0.0 Other temporary differences 6.4 2.1 -0.6 0.1 0.0 8.1 11 7.6 5.6 -0.6 0.3 -1.8 121. 1 Note 11. Deferred tax Unrecognized deferred tax assets Group MSEK 2025 2024 Tax deficits 22.2 20.2 Continuing net interest income 218.3 161.7 240.6 181.9 Parent Company MSEK 2025 2024 Tax deficits 0.0 0.0 Continuing net interest income 0.0 9.0 0.0 9.0 Continuing net interest income falls due for payment within five years. Most of the tax deficit does not have a maturity date. It is not certain that unrecognized deferred tax assets will result in lower tax payments in the future, which is the reason that no value is assigned to them. Deferred tax Group MSEK 2025 2024 Deferred tax liabilities, significant temporary differences Portion of untaxed reserves -72.1 -66.0 Intangible assets -190.8 -205.8 Property, plant and equipment -3.6 -2.8 Right-of-use assets -93.7 -101.6 Other temporary differences -1.5 -0.8 Deferred tax liabilities -361.7 - 3 7 7.0 Deferred tax assets, temporary differences Internal gain, inventories 3.0 3.6 Capitalized loss carryforwards 1.7 1.9 Lease liabilities 99.0 107.5 Provisions 0.0 0.0 Other temporary differences 1.6 8.1 Deferred tax assets 105.4 121.1 Deferred tax liabilities (-)/ tax assets (+), net -256.3 -255.9 70 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 13. Intangible assets MSEK Capitalized development costs, internally generated Trade marks Goodwill Customer relationships Other intangible assets1) Total Accumulated cost Opening balance, January 1, 2024 97.8 462.2 3,304.5 507.7 157.3 4,529.5 Business combinations 0.0 28.1 137.2 64.4 1.1 230.9 Divestment of subsidiaries 0.0 0.0 -1.0 0.0 -1.4 -2.5 Less discontinued operations -10.1 0.0 -153.6 0.0 0.0 -163.7 Divestments and disposals 0.0 0.0 0.0 0.0 -0.2 -0.2 Other investments 29.3 0.2 0.0 6.6 12.2 48.3 Reclassifications 7.3 0.0 0.0 0.8 -6.4 1.8 Translation differences -0.2 0.0 0.5 0.0 0.0 0.3 Closing balance, December 31, 2024 1 24.1 490.5 3,287 .5 579.6 162.6 4,644.3 Opening balance, January 1, 2025 124.1 490.5 3,287.5 579.6 162.6 4,644.3 Business combinations 0.0 2.1 160.4 82.4 0.0 244.8 Divestment of subsidiaries -39.9 0.0 -2.1 0.0 -1.1 - 4 3.1 Divestments and disposals 0.0 0.0 0.0 0.0 -2.0 -2.0 Other investments 14.7 0.1 0.0 0.0 6.8 21.7 Reclassifications 4.3 0.0 0.0 4.1 -8.3 0.0 Translation differences -0.9 0.0 -4.7 0.0 -0.5 - 6.1 Closing balance, December 31, 2025 102.3 492.7 3441.2 666.0 157 .6 4,859.7 N o t 12 . Earnings per share Earnings per share have been calculated as follows: 2025 2024 Profit/loss for the year attributable to Parent Company shareholders, continuing operations, MSEK -197.9 -199.4 Profit/loss for the year attributable to Parent Company shareholders, discontinued operations, MSEK 13.7 -183.7 Total number of outstanding common shares at year-end 104,547,315 104,459,909 Effect of issuance of new shares during the year -87,406 -11,067,349 Weighted average number of outstand- ing common shares before dilution 104,481,761 93,392,560 Warrants 439,225 0 Weighted average number of outstand- ing common shares after dilution 104,920,986 93,392,560 Earnings per share Before dilution for continuing opera- tions, SEK -1.89 -2.14 After dilution for continuing operations, SEK -1.89 -2.14 Before dilution including discontinued operations, SEK -1.76 -4.10 After dilution including discontinued operations, SEK -1.76 -4.10 As of the balance sheet date, there are 1,632,414 warrants out- standing that may have a potential dilutive effect corresponding to the same number of shares. Warrants are not included in the calculation of diluted earnings per share when they are anti-di- lutive. For further information on warrants, see Note 7 Employ- ees, personnel costs and remuneration of senior executives. MSEK Capitalized development costs, internally generated Trade marks Goodwill Customer relationships Other intangible assets1) Total Accumulated amortization and impairment Opening balance, January 1, 2024 - 3 7.7 -20.2 -9.2 -42.8 -55.3 -165.2 Business combinations 0.0 0.0 0.0 0.0 -0.1 - 0.1 Divestment of subsidiaries 0.0 0.0 0.0 0.0 1.4 1.4 Less discontinued operations 3.9 0.0 0.0 0.0 0.0 3.9 Divestments and disposals 0.0 0.0 0.0 0.0 0.2 0.2 Reclassifications -2.9 0.0 0.0 -0.5 3.4 0.0 Impairment for the year -16.3 0.0 -336.0 0.0 0.0 -352.2 Amortization for the year -10.8 -16.8 0.0 -56.1 -14.5 -98.1 Translation differences 0.1 0.0 0.3 0.0 0.0 0.4 Closing balance, December 31, 2024 -63.6 -36.9 -344.9 -99.4 -64.8 -609.7 Opening balance, January 1, 2025 -63.6 -36.9 -344.9 -99.4 -64.8 -609.7 Business combinations 0.0 -0.1 0.0 -8.2 0.0 -8.3 Divestment of subsidiaries 19.0 0.0 0.0 0.0 0.9 19.9 Divestments and disposals 0.0 0.0 0.0 0.0 2.0 2.0 Reclassifications 0.0 0.0 0.0 0.0 0.0 0.0 Impairment for the year 0.0 0.0 -136.1 -66.1 0.0 -202.2 Amortization for the year -9.7 -16.7 0.0 -59.0 -14.3 -99.7 Translation differences 0.5 0.0 0.2 0.0 0.3 1.0 Closing balance, December 31, 2025 -53.7 -53.8 -480.8 -232.7 -76.0 - 8 9 7.0 Carrying amounts At Jan 1, 2024 60.1 442.0 3,295.3 464.9 102.0 4,364.3 At Dec 31, 2024 60.5 453.5 2,942.6 480.2 97.8 4,034.6 At Jan 1, 2025 60.5 453.5 2,942.6 480.2 97.8 4,034.6 At Dec 31, 2025 48.5 438.9 2,960.4 433.3 81.6 3,962.7 1) Of the closing carr ying amount for other intangible assets at December 31, 2025, MSEK 5.7 (8.2) comprises projects in progress. 71 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Impairment testing of goodwill and trademarks with indefinite useful lives Goodwill and trademarks with indefinite useful lives are dis- tributed between the Group’s cash-generating units, which are the company’s sub-groups, and are tested for impairment at least annually or when indications arise. The recoverable amount has been determined based on calculations of value in use. A discounted cash flow model is used to estimate the value in use. The estimates and assumptions have been reviewed by Group management and are consistent with internal forecasts and future outlooks for the operations. The discounted cash flow model involves forecasting future cash flows from the operations, and several assumptions are made, the most signifi- cant of which are the rate of growth for income, EBIT margin and the discount rate before tax. The forecasts of future operating cash flows are based on each sub-group’s budget and strategic plan for a five-year period corresponding to each sub-group’s management and Board esti- mates regarding future income and operating expenses, based on prior years’ outcomes, general market conditions, industry performance and other available information. For the 2025 assessment, the perpetual growth rate used to extrapolate cash flow forecasts beyond the abovementioned five-year period was assumed to be 2%, corresponding to the Riksbank’s long-term inflation target. Each cash flow forecast has been based on cash flow state- ments with assumed individual WACC based on assessed risk levels in each company . The WACC is assumed to be in the range of 8.9–25.0% (10.6-18.7), corresponding to a weighted aver- age of 12.2% (13.9) for the entire portfolio. The margin between the value in use and the carrying amount under the assumptions described above amounts to MSEK 4,050.0. A sensitivity analysis shows that the impact on share values of adjusting the individual required returns by +/ -1 percentage point results in a total change in the value of the portfolio of 9.6% (8.3), at –1 percentage point WACC, and –8.1% (–7.2), at +1 percentage point WACC. As a supplementary sensitivity analy- sis, the impact on share values of a perpetual growth rate adjust- ment of –1 percentage point was calculated, which resulted in a total change in the value of the portfolio of –7.6% (–6.3). Finally , a sensitivity analysis shows that the impact on share values of adjusting the generated cash flows by –10% results in a total change in the value of the portfolio of –10.0%. This year’s impairment testing identified impairment in the portfolio companies IM Vision and Delta of Sweden. Impair- ment took place in third quarter. The impairment was deemed to be material and is detailed below. Total impairment of goodwill amounted to MSEK 11.1 in the Services segment and to MSEK 125.0 in the Innovations segment. Delta of Sweden Impairment testing for Delta of Sweden was based on a calcula- tion of value in use. This value uses future cash flow calcula- tions based on the most recent earnings forecast. The rate of growth after the forecast periods amounts to 2%. The estimated cash flows were calculated at present value using a discount rate of 13.9% after tax. Due to the market downturn and weak finan- cial performance, the forecast for the next few years has been adjusted downward, which resulted in an impairment of good- will of MSEK 125.0. For the continuing goodwill, the sensitivity analysis in the event of adjusting the individual WACC by +/ -1 percentage point shows a total change in the value of the portfolio of MSEK –58.3 at +1 percentage point WACC, and MSEK 69.5% at –1 per- centage point WACC. A change of –1 percentage point in the perpetual growth rate shows a total change in value of MSEK –38.7. A change of –10% in the generated cash flows shows a total change in value of MSEK –71.0. The following cash-generating units have significant carrying amounts of goodwill and trademarks with indefinite useful lives in relation to the Group’s total carrying amounts of goodwill and trademarks with indefinite useful lives. Impairment of acquisition-related surpluses, customer relationship A customer relationship was written down in the amount of MSEK -66.1 in the portfolio company EDAB in 2025. An exclu- sive sales agreement for the North American market expired during the year. Forecasted sales volumes were not achieved, which led to the agreement not being extended and a decision was made to write down the remaining carrying amount. 2025 Carrying amount, MSEK Goodwill Trademarks WACC Beans in Cup 5 3 7.5 9.7% Delta 383.5 13.9% Sappa 286.4 10.4% Alfa 242.7 130.0 13.3% Houser 226.4 8.9% Micropol 193.9 1 7.7% PPP 163.4 12.4% 2,033.7 130.0 Entities without significant goodwill amounts, aggregate 926.7 10.9%- 25.0% 2,960.4 130.0 2024 Carrying amount, MSEK Goodwill Trademarks WACC Beans in Cup 5 3 7.5 10.9% Delta 508.5 15.9% Sappa 286.4 10.6% Houser 226.4 12.5% Micropol 193.9 18.6% Freysgruppen 139.6 14.9% Alfa 104.3 130.0 14.2% 1,996.5 130.0 Entities without significant goodwill amounts, aggregate 946.1 11.0%-18.7% 2,942.6 130.0 72 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 14. Property, plant and equipment MSEK Land and buildings Equipment, tools, fixtures and fittings Construction in progress Plant and machinery Total Cost Opening balance, January 1, 2024 75.0 313.5 2.9 150.4 541.8 Business combinations 9.1 16.4 5.5 31.0 61.9 Divestment of subsidiaries 0.0 -2.4 -0.3 -10.0 -12.7 Less discontinued operations 0.0 -1.3 0.0 0.0 -1.3 Divestments and disposals -0.1 -12.7 0.0 -19.1 -31.9 Other investments 1.3 44.4 18.1 7.5 71.3 Reclassifications 9.9 0.4 -16.5 5.2 -1 .1 Translation differences 2.0 0.8 0.1 1.6 4.4 Closing balance, December 31, 2024 9 7.1 3 5 9.1 9.8 166.5 632.5 Opening balance, January 1, 2025 97.1 359.1 9.8 166.5 632.5 Business combinations 15.1 3.4 0.0 1.2 19.6 Divestment of subsidiaries -25.5 -6.6 -0.2 -25.5 - 5 7. 8 Divestments and disposals 0.0 -15.6 0.0 -7.8 -23.4 Other investments 0.7 18.7 23.6 9.9 52.9 Reclassifications 0.0 22.3 -26.3 4.0 0.0 Translation differences -4.1 -3.0 -0.2 -3.5 -10.8 Closing balance, December 31, 2025 83.3 378.2 6.8 144.9 61 3.1 MSEK Land and buildings Equipment, tools, fixtures and fittings Construction in progress Plant and machinery Total Accumulated depreciation and impairment Opening balance, January 1, 2024 -19.2 -185.3 0.0 -108.0 -312.5 Business combinations -1.1 -13.1 0.0 -25.8 -39.9 Divestment of subsidiaries 0.0 2.3 0.0 9.5 11.8 Less discontinued operations 0.0 0.7 0.0 0.0 0.7 Divestments and disposals 0.1 8.4 0.0 1 7.4 25.9 Reclassifications 0.0 -1.7 0.0 0.0 -1.7 Depreciation for the year -2.3 -39.7 0.0 -15.2 -57 .2 Impairment for the year 0.0 0.0 0.0 0.0 0.0 Translation differences -0.4 -0.4 0.0 -1.3 -2.0 Closing balance, December 31, 2024 -22.8 -228.8 0.0 -123.3 -375.0 Opening balance, January 1, 2025 -22.8 -228.8 0.0 -123.3 -375.0 Business combinations -7.4 -2.9 0.0 -1.2 -11.5 Divestment of subsidiaries 7.3 5.9 0.0 21.6 34.8 Divestments and disposals 0.0 9.9 0.0 6.8 16.8 Reclassifications 0.0 0.4 0.0 -0.4 0.0 Depreciation for the year -2.7 -42.2 0.0 -15.1 -59.9 Translation differences 0.5 2.0 0.0 2.1 4.6 Closing balance, December 31, 2025 -25.1 -255.7 0.0 -109.5 -390.3 Carrying amounts At Jan 1, 2024 55.8 128.3 2.9 42.3 229.3 At Dec 31, 2024 74.3 130.2 9.8 43.2 2 5 7.5 Of which, land 6.5 At Jan 1, 2025 74.3 130.2 9.8 43.2 2 5 7.5 At Dec 31, 2025 58.2 122.5 6.8 35.4 222.8 Of which, land 4.6 73 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 15. Participations in associates Disclosures on the Group’s associates are provided below. Group MSEK Dec 31, 2025 Dec 31, 2024 Opening carrying amount 6.1 4.3 Participations in profit or loss of associates -2.5 -0.7 Capital contributions paid 3.8 2.6 Divestment of participations in associates -0.2 0.0 Closing carrying amount 7. 3 6.1 Participations in associates Characteristics of investment Country Holding Carrying amount Carrying amount ECO 3 AB Refurbishment and recycling of coffee and water machines Sweden 20% (20%) 0.4 0.3 ScaffSense AB Scaffolding alarm system Sweden 50% (50%) 6.2 4.1 Southerly Communications Ltd Behavioral science combined with communication UK 44% (49%) 0.6 1.7 Closing carrying amount 7. 3 6.1 Note 16. Shares and participations Group MSEK Dec 31, 2025 Dec 31, 2024 Participations in tenant-owners’ associations 4.5 4.5 Preference share Logiwaste 16.5 - Other participations (unlisted shares, endowment insurance, trade associations) 1.2 2.2 22.2 6.6 The Group classifies the preference share in Logiwaste and pa rticipations in tenant-owners’ associations above as equity instruments measured at fair value. Changes in the value of pa rticipations in tenant-owners’ associations are recognized in Other comprehensive income and changes in the value of the preference shares in Logiwaste are recognized through profit or loss under financial items. The portfolio company Logiwaste was divested during the year and, as part of the transaction, a preference share was received which carries entitlement to a significant share of the profits of Logiwaste and disposal proceeds from a future sale of the company to a third party . On the transaction date, the preference share was valued at MSEK 10.9 and the change in fair value amounted to MSEK 5.6 for the year. The preference share in Logiwaste is not traded on an active market. The fair value was determined in accordance with IFRS 13 using a valuation model based on discounting forecasted future cash flows. The cash flows are based on the company’s assessment of the underlying company’s future performance, expected exit, profit-sharing mechanisms and probability-weighted scenarios. The discount rate reflects the market-based WACC taking into account risk and time value. The valuation is based on unobservable inputs and is classified at level 3 of the fair value hierarchy . There were no material changes in value in participations in tenant-owners’ associations based on an independent valuation by real estate agents. Note 17. Non-current receivables and other receivables Non-current receivables Group MSEK Dec 31, 2025 Dec 31, 2024 Deposits 6.7 7.4 Other information 9.5 1.7 16.2 9.1 Other receivables Group MSEK Dec 31, 2025 Dec 31, 2024 VAT receivable 3.7 9.7 Other receivables 38.7 16.3 42.3 26.0 Parent Company MSEK Dec 31, 2025 Dec 31, 2024 VAT receivable 1.7 1.6 Other receivables 0.0 0.0 1.7 1.6 Note 18. Inventories Group MSEK Dec 31, 2025 Dec 31, 2024 Raw materials and consumables 188.1 214.4 Products in progress 54.8 55.7 Finished goods and goods for resale 212.6 232.0 Advance payments to suppliers 19.3 19.3 474.7 521.4 The item inventories for the Group includes impairment of inventories of MSEK 13.4 million (6.0). The cost of inventories is included in the income statement item raw materials and consumables. The Parent Company does not have any inventories. 74 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 22. Equity Share capital Type of shares 2025 2024 Parent Company Common shares Registered at January 1 104,459,909 92,538,604 Issued during the year 87,406 11,921,305 Registered at December 31 104,547,315 104,459,909 Issued, not registered 3,517,009 0 Total number of shares 108,064,324 104,459,909 Quotient value, SEK 0.01 0.01 Share capital SEK, registered 668,824 668,265 Share capital SEK, not registered 22,499 0 Total number of shares 108,064,324 104,459,909 One share carries entitlement to one vote. The proposed d ividend is SEK 0 (0) per share. Group Reserves Reserves, in their entirety , comprise the translation reserve. The translation reserve includes all exchange differences that arise on the translation of the financial statements of foreign companies that have prepared their financial statements in a currency other than the currency in which the consolidated financial statements are presented. The Parent Company and Group present their financial statements in Swedish kronor. Other contributed capital Other contributed capital consists of the share premium reserve in connection with non-cash and offset issues and shareholders’ contributions received. Retained earnings including profit for the year Retained earnings comprise last year’s retained earnings and profit for the year. Retained earnings also include the net change in proceeds from the issue of warrants and the changes in value attributable to the revaluation of minority options. Note 23. Interest-bearing liabilities Group MSEK Dec 31, 2025 Dec 31, 2024 Non-current liabilities Bonds 1,450.0 1,200.0 Capitalized borrowing costs, bonds -23.6 -25.5 Liabilities to credit institutions 103.9 313.2 Capitalized borrowing costs, liabilities to credit institutions -2.1 -3.2 Lease liabilities 3 3 7.4 387.4 Promissory notes 199.1 195.8 Interest-bearing tax forbearance 10.9 22.1 2,075.6 2,089.8 Current liabilities Liabilities to credit institutions 1.5 1.7 Overdraft facilities 0.0 12.8 Lease liabilities 158.7 155.5 Promissory notes 12.0 15.5 Interest-bearing tax forbearance 12.3 11.2 184.5 196.7 Parent Company MSEK Dec 31, 2025 Dec 31, 2024 Non-current liabilities Bonds 1,450.0 1,200.0 Capitalized borrowing costs, bonds -23.6 -25.5 Liabilities to credit institutions 100.0 310.0 Capitalized borrowing costs, liabilities to credit institutions -2.1 -3.2 1,524.3 1,481.3 Current liabilities Overdraft facilities 0.0 12.8 0.0 12.8 Note 21. Cash and cash equivalents Group MSEK Dec 31, 2025 Dec 31, 2024 Cash and bank balances 200.1 148.8 Total according to statement of cash flows 200. 1 148.8 Parent Company MSEK Dec 31, 2025 Dec 31, 2024 Cash and bank balances 69.1 0.0 Total according to statement of cash flows 69.1 0.0 Note 20. Contract assets Group MSEK Dec 31, 2025 Dec 31, 2024 Contract assets Opening balance 1 7.2 35.4 Adjustment of opening balance attributable to correction of error 0.0 -1 7.0 Divestments of Group companies -0.7 0.0 Changes attributable to normal business 12.6 -1.5 Exchange differences for the year -1.0 0.3 2 8.1 1 7. 2 For further information on credit risks, see Note 30 Financial risks and risk management. The Parent Company does not have any contract assets. Note 19. Prepaid expenses and accrued income Group MSEK Dec 31, 2025 Dec 31, 2024 Prepaid insurance costs 4.9 4.0 Prepaid license and program expenses 16.3 16.9 Other prepaid expenses 35.5 75.5 Accrued supplier bonus 2.8 1.4 Accrued royalties 14.0 18.0 Other accrued income 31.4 22.4 104.9 138.3 Parent Company MSEK Dec 31, 2025 Dec 31, 2024 Prepaid insurance costs 1.0 0.0 Other prepaid expenses 1.9 41.0 Other accrued income 1.0 1.0 3.8 42.0 75 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Terms and repayment periods The Group has a senior covered bond valid from December 5, 2024 up to and including December 5, 2027, with interest terms of Stibor-90 + 550 bps. The Group also has a senior secured RCF with Nordea with a maximum limit of MSEK 500 and the same tenor as the bond. The bond and RCF have incurrence covenants whereby Net debt/Adjusted EBITDA R12M must be less than 3.75x. The RCF also has a maintenance covenant whereby Net debt/Adjusted EBITDA R12M must be less than 1.25x, on a quarterly basis, for debt under the RCF. Both of these covenants had been met as at the balance sheet date. For a definition of Net debt/Adjusted EBITDA R12M, refer to page 67, Definitions of alternative per- formance measures. Refer also to the table presented in section Net debt/Adjusted EBITDA R12M on page 68. 2025 MSEK Currency Nominal interest rate Maturity Nominal amount Carrying amount Revolving credit facility SEK Stibor-90+2.75% Dec 5, 2027 100.0 97.9 Bonds SEK Stibor-90+5.5% Dec 5, 2027 1450.0 1426.4 Bank loans, subsidiaries SEK 3.7-4.2% 2026-2028 5.4 5.4 Promissory notes SEK S-90+3.0% / 8.0% 2026 211.0 211.0 Tax forbearance SEK 2.5-5.0% 2026 23.3 23.3 Lease liabilities SEK N/A1) N/A1) 552.8 496.1 Total interest-bearing liabilities 2,342.5 2,260. 1 1) The Group’s leases have varying interest rates and maturity structures. 2024 MSEK Currency Nominal interest rate (interval) Maturity (interval) Nominal amount Carrying amount Revolving credit facility SEK Stibor-90+2.75% Dec 5, 2027 326.0 322.7 Bonds SEK Stibor-90+5.5% Dec 5, 2027 1,200.0 1,174.5 Bank loans, subsidiaries SEK 5.4-5.7% 2024 1.6 1.6 Promissory notes SEK S-90+3.0% / 8.0% 2025-2026 211.3 211.3 Tax forbearance SEK 5.0% 2025-2026 33.3 33.3 Lease liabilities SEK N/A1) N/A1) 611.7 542.9 Total interest-bearing liabilities 2,383.9 2,286.5 1) The Gr oup’s leases have varying interest rates and maturity structures. Cash items Non-cash items 2025 Opening balance Borrowings Amortization Payment of accrued interest Acquired/ divested companies Reclassification Change in exchange rate New/amended leases Change in accrued interest Dissolution of allocated borrowing costs Closing balance Liabilities to credit institutions, incl. capitalized borrowing costs 311.6 3.3 -326.5 113.7 1.1 103.3 Bond, incl. capitalized borrowing costs 1,174.5 243.1 8.8 1,426.4 Overdraft facilities 12.8 -12.8 0.0 Promissory notes 211.3 -26.1 -0.9 11.1 0.0 15.6 211.0 Tax forbearance 33.3 -11.8 1.7 0.0 23.3 Lease liabilities 542.9 -158.5 2.8 -8.3 11 7.1 496.1 Total interest-bearing liabilities 2,286.4 246.4 -535.6 -0.9 129.3 0.0 -8.3 11 7.1 15.6 9.9 2,260. 1 Cash items Non-cash items 2024 Opening balance Borrowings Amortization Payment of accrued interest Acquired/ divested companies Reclassification Change in exchange rate New/amended leases Change in accrued interest Dissolution of allocated borrowing costs Closing balance Liabilities to credit institutions, incl. capitalized borrowing costs 1,320.4 306.7 -1,297.4 -21.9 -0.2 4.0 311.6 Bond, incl. capitalized borrowing costs 1,173.9 0.6 1174.5 Overdraft facilities 187.8 -175.0 12.8 Promissory notes 98.9 -92.0 -6.9 206.0 5.3 211.3 Tax forbearance 36.6 -3.0 -0.3 33.3 Lease liabilities 518.9 -141.7 60.8 -4.6 2.6 106.9 542.9 Total interest-bearing liabilities 2, 162.5 1,480.6 -1,709. 1 -28.8 266.8 -4.9 2.4 106.9 5.3 4.6 2,286.5 76 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 24. Provisions Group MSEK Dec 31, 2025 Dec 31, 2024 Total provisions that are non-current liabilities Guarantees 4.5 4.0 Pensions 0.9 1.8 Other information 0.2 4.2 Carrying amount at end of the year 5.6 10.0 Guarantees Carrying amount at beginning of the year 4.0 1.1 Provisions made during the year 1.5 2.9 Amounts utilized during the year -1.1 0.0 Added by acquisitions 0.0 0.0 Revaluations 0.0 0.0 Exchange differences for the year 0.0 0.0 Carrying amount at end of the year 4.5 4.0 Pensions Carrying amount at beginning of the year 1.8 1.7 Provisions made during the year 0.0 0.4 Amounts utilized during the year -0.3 -0.2 Added by acquisitions 0.0 0.0 Deduction through divestment of Group companies -0.5 -0.1 Revaluations -0.1 0.1 Exchange differences for the year 0.0 0.0 Carrying amount at end of the year 0.9 1.8 Other information Carrying amount at beginning of the year 4.2 18.5 Provisions made during the year 0.2 2.8 Amounts utilized during the year -2.6 -1 7.1 Added by acquisitions 0.0 0.0 Deduction through divestment of Group companies -1.6 0.0 Revaluations 0.0 0.0 Exchange differences for the year 0.0 0.0 Carrying amount at end of the year 0.2 4.2 The Parent Company does not have any provisions. Note 25. Other non-current liabilities Group MSEK Dec 31, 2025 Dec 31, 2024 Liability, grants received 7.7 8.5 Other non-current liabilities 0.2 0.2 7.9 8.7 The Parent Company does not have any other non-current liabilities. Note 26. Other current liabilities Group MSEK Dec 31, 2025 Dec 31, 2024 Advance payments from customers 36.9 8.6 Personnel liabilities 55.8 57.7 VAT liability 65.2 49.4 Other current liabilities 14.7 55.0 172.6 170.8 Parent Company MSEK Dec 31, 2025 Dec 31, 2024 Personnel liabilities 1 .1 1.4 Other current liabilities 0.0 3.5 1 .1 4.9 Note 27. Accrued expenses and deferred income Group MSEK Dec 31, 2025 Dec 31, 2024 Accrued personnel costs 196.1 193.2 Accrued interest expenses 27.9 11.8 Accrued customer bonuses 5.0 5.4 Accrued expenses (materials/raw materials) 9.3 5.0 Accrued consultant costs 9.3 6.3 Accrued expenses (subsuppliers/projects) 10.3 7.5 Other accrued expenses 48.6 44.3 Deferred income 4.3 5.2 310.8 278.6 Parent Company MSEK Dec 31, 2025 Dec 31, 2024 Accrued personnel costs 3.5 2.8 Accrued interest expenses 25.8 8.1 Accrued consultant costs 3.7 0.0 Other accrued expenses 0.6 0.7 33.7 11.4 77 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Dec 31, 2025 Financial assets measured at amortized cost Financial liabilities measured at amortized cost Measured at fair value (Level 3) through profit or loss Measured at fair value (Level 3) through other com- prehensive income Measured at fair value (Level 3) through equity Total carrying amount Financial assets Shares and participations 16.5 5.7 Accounts receivable 624.5 Accrued income 45.4 Cash and cash equivalents 200.1 Total financial assets 869.9 0.0 16.5 5.7 0.0 8 92 .1 Financial liabilities Interest-bearing liabilities Liabilities to credit institutions 103.3 Bonds 1,426.4 Lease liabilities 496.1 Other interest-bearing liabilities 234.3 Total interest-bearing liabilities 2,260. 1 2,260. 1 Non-interest bearing liabilities Accounts payable 374.6 Contingent earn-outs 32.9 Minority options 141.6 Other non-current and current liabilities 45.4 Total non-interest bearing liabilities 420.0 32.9 141.6 594.5 Total financial liabilities 2,680. 1 32.9 0.0 141.6 2,854.6 Note 28. Contract liabilities Group MSEK Dec 31, 2025 Dec 31, 2024 Opening balance 164.8 118.0 Divestments of Group companies -3.5 0.0 Less liabilities attributable to discontinued operations 0.0 -11.7 Changes attributable to normal business 35.1 58.4 Exchange differences for the year -0.3 0.0 Closing balance 1 96.1 164.8 The Group applies the exemption not to disclose income that is part of a contract expected to be completed within one year or for income recognized at the amount the Group is entitled to invoice, when the Group is entitled to consideration from a cus- tomer in an amount that directly corresponds to the value to the customer of the Group’s performance achieved to date. All con- tract liabilities were recognized as income during the year. The Parent Company does not have any contract liabilities. Dec 31, 2024 Financial assets measured at amortized cost Financial liabilities measured at amortized cost Measured at fair value (Level 3) through profit or loss Measured at fair value (Level 3) through other com- prehensive income Measured at fair value (Level 3) through equity Total carrying amount Financial assets Shares and participations 6.6 6.6 Accounts receivable 552.5 552.5 Accrued income 41.8 41.8 Cash and cash equivalents 148.8 148.8 Total financial assets 74 3.1 6.6 749.7 Financial liabilities Interest-bearing liabilities Liabilities to credit institutions 324.3 324.3 Bonds 1,174.5 1,174.5 Lease liabilities 542.9 542.9 Other interest-bearing liabilities 244.6 244.6 Total interest-bearing liabilities 2,286.3 2,286.3 Non-interest bearing liabilities Accounts payable 406.1 406.1 Contingent earn-outs 46.5 46.5 Minority options 119.3 119.3 Other non-current and current liabilities 70.3 70.3 Total non-interest bearing liabilities 476.4 46.5 119.3 642.3 Total financial liabilities 2,762.8 46.5 119.3 2,928.6 The carrying amounts of accounts receivable, cash and cash equivalents, accounts payable and other liabilities are a reasonable approximation of fair value. For bonds and liabilities to credit institutions, the carrying amount differs from the fair value by MSEK 23.6 (25.5) and MSEK 2.1 (3.2), respectively , attributable to capitalized borrowing costs. Note 29. Measurement of financial assets and liabilities 78 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Contingent earn-outs Group MSEK Dec 31, 2025 Dec 31, 2024 Opening balance 46.5 280.5 Additional 14.0 12.2 Paid -44.8 -118.5 Revaluation of Contingent earn-outs 1 7.2 -127.6 Closing balance 3 2.9 46.5 Of which: Non-current Contingent earn-outs 14.6 13.7 Current Contingent earn-outs 18.3 32.8 32.9 46.5 Given that there are several different Contingent earn-outs from acquisitions in the Group and that these have significant differences in their terms, future forecasts and tenors, a sensi- tivity analysis cannot provide a true and fair view of potential changes in the valuation. A change in the discount rate of 1 per- centage point would affect the closing liability for the earn-outs by MSEK +/ –0.2. An increase and a decrease in EBITA/EBIT- DA of 10% would affect the earn-outs by MSEK 10.7 and MSEK -9.5,respectively . The fair value of the Contingent earn-outs was calculated based on the expected outcome of the targets set in the contracts, given a discount rate in the interval of 12.4-31.9%. Earn-outs are normally calculated on the basis of the compa- ny’s EBITDA or EBITA (under the terms agreed between the parties), usually within an interval of floor and ceiling levels, multiplied by a valuation multiple. If the company does not reach the agreed floor level, the earn-out is not payable. The maximum outcome for undiscounted contingent earn- outs, and that is based on the earnings outcome for 2026 or later, amounted to MSEK 42.0. The Parent Company does not have any contingent earn-outs. Minority options Group MSEK Dec 31, 2025 Dec 31, 2024 Opening balance 119.3 87.8 Additional 0.0 45.7 Paid 0.0 -1.2 Revaluation of Minority options (through equity) 22.3 -12.9 Closing balance 14 1.6 119.3 Of which: Non-current liabilities 31.9 119.3 Current liabilities 109.7 0.0 141.6 119.3 Given that there are several different agreements regarding Minority options from acquisitions in the Group and that these have significant differences in their terms, future forecasts and tenors, a sensitivity analysis cannot provide a true and fair view of potential changes in the valuation. A change in the discount rate of 1 percentage point would affect the liability for the Minority options by MSEK +/ –1.4. A change in EBITA/EBIT- DA of 10% would affect the Minority options by MSEK +/ –2.8. The fair value of the liabilities for the Minority options was cal- culated based on the expected outcome of the targets set in the contracts, given a discount rate in the interval of 12.4-20.0%. The minority options are normally calculated on the basis of the company’s EBITDA or EBITA (under the terms agreed between the parties), multiplied by a valuation multiple and adjusted for net indebtedness. The maximum outcome for undiscounted Minority options cannot be determined since there is no maximum ceiling amount in all of the contracts. Under the shareholders’ agreement signed between the Group (the Buyer) and the senior executives (the Seller), who hold 9.9% of SKAB-Gruppen, the Buyer and Seller have the right to call for redemption of 4.9%, and for the remaining 5.0% the Seller but not the Buyer has the right to call for redemption. After the shareholders’ agreement was entered into, the Group reports 4.9% as a minority option and 5.0% as non-controlling interests. The Parent Company does not have any Minority options or other call and put options. Through its activities, the Group is exposed to various types of financial risks related to accounts receivable, accounts payable and loans. The Group’s financial risks comprise currency risk, interest rate risk, liquidity risk and credit risk. Framework for financial risk management Responsibility for the Group’s financial transactions and risks are centralized to the Group’s finance function in the company . The overall objective of the finance function is to provide cost-effective financing and to minimize negative effects on the Group’s earnings, attributable to financial risks. The Group’s financing and financial risks are managed with- in the Group in accordance with the financial policy adopted by the Board. The Boards of each sub-group determine the financial strategy of the sub-group in accordance with the Group’s financial policy . The Group’s financial policy , which provides guidelines on managing, division of mandates and monitoring financial risks, is adopted annually by the company’s Board. The Board evaluates and, where necessary , proposes changes to the financial policy . Financial risk management is part of the Group’s framework of internal control over the financial reporting with controls imple- mented to mitigate risks and reporting to the Group’s Board. Interest rate risk Interest rate risk is the risk that the value of financial instruments will fluctuate because of changes in market rates. Interest rate risk can result in changes in fair values and changes in cash flows. Interest rate risks mainly relate to the Group’s interest-bear- ing debt, which amounted to MSEK 1,789.7 (1,772.2) at Decem- ber 31, 2025. The borrowing rate is linked to the market rate, Stibor-90. According to the financial policy , the interest rate duration for the Group shall take into consideration the forecasted cash flow from the Group companies, matching between internal and external assets and liabilities, and remain stable to temporary market rate fluctuations. If interest rates change by 1 percentage point in all countries where the Group has loans or investments, the effect on net financial items, based on liabilities to credit institutions at year- end which are not hedged, will total approximately MSEK 17.9 (17.7). This sensitivity analysis is based on all other factors (such as exchange rates) remaining unchanged. The Group does not have any interest-rate derivatives. Hedge accounting is not applied. Currency risk The risk that the fair values and cash flows of financial instru- ments may fluctuate when the value of foreign currencies changes is known as currency risk. In the Parent Company , investments may typically only be made in Swedish currency . The Group companies manage their currency risks in accor- dance with the local currency and are subsequently translated to Swedish kronor. Therefore, the Group’s earnings and equity are impacted by fluctuations in the SEK exchange rate. External contracts have generally been entered into with major banks or financial insti- tutions that are not expected to become insolvent and are gener- ally shorter than 12 months. The greatest impact on profit before tax arises when operat- ing receivables and liabilities, and financial liabilities and assets are translated. The Group does not have any currency forward contracts. Hedge accounting is not applied. Sensitivity analysis for currency risk The Group operates internationally and is exposed to currency risk from exposure to different currencies. Currency risk arises from future commercial transactions, recognized assets and lia- bilities, and net investments in foreign operations. Currency risk arises when future commercial transactions, recognized assets and liabilities in the Group’s entities are denominated in a currency other than the Group’s functional currency . The cur- rencies to which the Group is primarily exposed are: NOK, EUR, DKK, PLN, USD and CNY. The Group’s risk exposure in the form of net assets in foreign operations at the end of the financial year expressed in MSEK was as follows: The Group’s net assets in foreign operations per currency MSEK Dec 31, 2025 Dec 31, 2024 NOK 126.0 123.9 EUR 35.6 38.8 DKK 84.2 54.8 PLN 0.0 24.8 USD 26.7 20.4 CNY 1 7.0 14.4 Other currencies (VND, THB, INR) 7.8 9.2 2 9 7. 4 286.3 Note 30. Financial risks and risk management 79 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Of the Group’s total net assets, MSEK 297.4 (286.3) was attribut- able to foreign operations at December 31, 2025. In the sensitivity analysis of net assets at constant exchange rates from December 31, 2024, the total would amount to MSEK 322.0 (280.9). The Group’s net sales per currency MSEK 2025 % 2024 % SEK 3,237.4 63% 2,780.4 61% USD 547.6 11% 583.7 13% NOK 628.7 12% 455.0 10% EUR 389.1 8% 398.7 9% DKK 235.9 5% 247.8 5% Other currencies (PLN, INR, VNY , THB, SGD, VND, GBP) 75.4 1% 69.4 2% 5,114.2 4,534.9 Of the Group’s total reported sales for 2025 of MSEK 5,114.2 (4,534.9), 37% (39), corresponding to MSEK 1,876.8 (1,754.6), consists of net sales in currencies other than SEK. The sensitivity analysis of reported net sales for 2025 at constant exchange rates from the previous year would result in reported net sales of MSEK 5,219.0 (4,559.9), meaning MSEK 104.8 (25.0) higher net sales, corresponding to 2.0% (0.5). Liquidity risk Liquidity risk is the risk that the Group may encounter difficul- ties in meeting its obligations associated with financial liabilities. In total, the combination of available credit facilities and available cash is to exceed the forecast obligations for the next 12 months. Pledging shares or other assets as collateral for own commitments or for commitments of the holdings or a third party may be performed following a Board decision. G uarantees relating to provision of equity capital may be pro- vided following a Board decision. At December 31, 2025, the Parent Company had a bond with a nominal amount of MSEK 1,450 and a total RCF framework with credit institutions of a maximum of MSEK 500. At the b alance sheet date of December 31, 2025, the Group had utilized MSEK 100.0 of the RCF framework for cash and cash equiva- lents and an additional MSEK 38 for bank guarantees. Including the unutilized portion of the committed credit facility , available cash and cash equivalents at December 31, 2025 amounted to MSEK 562.1 (322.3). In addition, the Board of the Parent Company has authoriza- tion from the Annual General Meeting to issue shares in con- junction with agreements on acquisitions. The Parent Company lends funds within the Group at vari- able market terms. The Group’s undiscounted estimated interest payments and repayments of financial liabilities are presented in the table below. Financial instruments carrying variable interest rates were calculated using the rate on the balance sheet date. Liabili- ties were included in the earliest period for which repayment may be required. Maturity analysis Financial liabilities, Dec 31, 2025 Within 1 year 1–5 years 5 years or more Total incl. estimated interest Carrying amount Liabilities to credit institutions 101.7 0.3 102.0 103.3 Promissory notes 226.9 226.9 211.0 Tax forbearance 13.6 12.2 25.8 23.3 Bonds 109.1 1,578.6 1,687.7 1,426.4 Lease liabilities 162.6 315.0 75.3 552.8 496.1 Total interest-bearing liabilities 614.0 1,906. 1 75.3 2,595.3 2,260. 1 Earn-outs 19.5 18.4 3 7.9 32.9 Minority options 118.2 47.2 165.4 141.6 Accounts payable 374.6 374.6 374.6 Other non-interest bearing liabilities 654.1 0.9 6.9 661.9 661.9 Total non-interest bearing liabilities 1, 166.4 66.5 6.9 1,239.8 1,210.9 Maturity analysis Financial liabilities, Dec 31, 2024 Within 1 year 1–5 years 5 years or more Total incl. estimated interest Carrying amount Liabilities to credit institutions 18.2 345.5 363.7 324.4 Promissory notes 16.0 2 27.3 243.2 211.3 Tax forbearance 12.5 24.7 3 7.2 33.3 Bonds 64.6 1,406.8 1,471.4 1,174.5 Lease liabilities 159.0 3 3 7.7 115.0 611.7 542.9 Total interest-bearing liabilities 270.3 2,342.0 115.0 2,727 .2 2,286.4 Earn-outs 33.8 16.6 50.4 46.5 Minority options 156.7 156.7 119.3 Accounts payable 406.1 406.1 406.1 Other non-interest bearing liabilities 616.5 1.1 7.4 625.1 625.1 Total non-interest bearing liabilities 1,056.4 174.4 7. 4 1,238.3 1 ,1 97.1 Credit risk Credit risks comprise risks in financial and commercial transac- tions. In its financial activities the Group is exposed to counter- party credit risk in conjunction with investment of surplus liquidity in bank accounts. Commercial exposure mainly com- prises the credit risk in the Group’s accounts receivable and c ontract assets, and relates to customers failing to meet their payment commitments. The Group endeavors to limit credit risk by diversifying its operations, industries and customer concentration. The Group has 16 portfolio companies operating in a wide range of indus- tries. Within these 16 portfolio companies, the majority are exposed to customers across a variety of sectors, resulting in the Group as a whole having a well-diversified exposure to different operations and industries. No single customer accounted for more than 5% of total net sales during the year. In addition, the subsidiaries comply with the Group’s finan- cial policy , which has clearly defined procedures for credit risk through accounts receivable and contract assets. Historically , the Group’s companies have not incurred any credit losses attributable to contract assets and have only incurred immateri- al customer credit losses. The credit risk is deemed to be at an acceptable level for the future and no expected credit losses are recognized for contract assets. The maximum credit risk attrib- utable to the Group’s accounts receivable and contract assets at the end of the financial year corresponded to the carrying amount of MSEK 652.6 (569.7). The Group believes that there is not any risk of expected credit losses for cash and cash equivalents based on the high credit ratings of the counterparties and the limited maturities. The Parent Company’s non-current receivables from Group companies consist of interest-only promissory notes, which are pledged in favor of bondholders and banks. The Parent Compa- ny’s current receivables from Group companies are mainly from the Group-wide cash pool and are expected to be settled in full. Maturity structure Dec 31, 2025 Not past due 1–30 days 31–90 days >90 days Total Accounts receivable, gross 536.5 69.4 13.9 11.9 631.6 Impairment -0.6 -0.4 -1.0 -5.2 -7.1 Accounts receivable, carrying amount 535.8 69.0 12.9 6.7 624.5 Percentage 86% 11% 2% 1% 100% Maturity structure Dec 31, 2024 Not past due 1–30 days 31–90 days >90 days Total Accounts receivable, gross 456.7 70.2 13.8 20.1 560.9 Impairment -1.5 -0.3 -0.3 -6.4 -8.4 Accounts receivable, carrying amount 455.2 69.9 13.6 13.7 552.5 Percentage 82% 13% 2% 2% 100% The majority of the Group’s companies perform ongoing credit assessments of customers’ credit ratings and apply standardized reminder and debt collection processes for past due accounts receivable. 80 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 31. Leases Leases in which the company is the lessee The Group’s right-of-use assets consist of leased assets. The Group leases several types of assets (machinery , equipment, vehicles and properties). No leases contain covenants or other restrictions other than the collateral of the leased asset. A number of different assumptions may need to be made for the recognition of assets, of which determining the discount rate and determining the lease term were considered to be the most critical. The discount rates applied are determined centrally and include the Group’s estimated incremental borrowing rate for each entity , which is determined per currency and leased asset. The model for determining the incremental borrowing rate is reviewed at least once annually or whenever there is an indication of a need for review to ensure the validity of the model. The lease term is determined based on the information available in the lease and other relevant facts and circumstances as assessed by management. The lease term includes extension or termination options if they meet the requirement of reason- able certainty . Leases do not always include specific clauses on, for example, termination, cancellation or renewal. In such cas- es, assumptions are made based on the information contained in the leases together with management’s assessment of the rele- vant circumstances. Group MSEK Properties Machinery Equipment Vehicles Total Opening carrying amount, January 1, 2025 441.0 8.5 12.5 68.7 530.6 Exchange differences -7.8 0.0 -0.1 -0.2 -8.0 Additional right-of-use assets 83.5 13.1 0.2 32.4 129.3 Company acquisitions 2.3 0.3 0.1 0.0 2.8 Concluded leases -3.6 0.0 0.0 -2.3 -5.8 Depreciation -113.2 -3.9 -3.3 -32.7 -15 3.1 Impairment -5.5 0.0 0.0 0.0 -5.5 Company divestments -1.8 0.0 -1.4 -1.5 -4.7 Closing carrying amount, December 31, 2025 395.0 18.0 8.1 64.5 485.6 Group MSEK Properties Machinery Equipment Vehicles Total Opening carrying amount, January 1, 2024 380.2 9.2 8.2 107.5 505. 1 Exchange differences 2.5 0.0 0.1 0.0 2.6 Additional right-of-use assets 109.2 2.3 9.4 2.7 123.6 Company acquisitions 55.1 0.0 0.0 5.7 60.8 Concluded leases -0.1 -0.1 -0.1 -5.5 -5.8 Less discontinued operations -4.2 0.0 -2.0 -2.2 -8.4 Depreciation -101.7 -2.9 -3.1 -39.5 -147 .2 Company divestments 0.0 0.0 0.0 0.0 0.0 Closing carrying amount, December 31, 2024 441.0 8.5 12.5 68.7 530.6 Lease liabilities Group MSEK Dec 31, 2025 Dec 31, 2024 Current lease liabilities 158.7 155.5 Non-current lease liabilities 3 3 7.4 387.4 Lease liabilities included in statement of financial position 496.1 542.9 Amounts recognized in profit or loss Group MSEK 2025 2024 Depreciation of right-of-use assets 152.8 147.2 Impairment of right-of-use assets 5.5 0.0 Interest on lease liabilities 22.7 24.9 Costs for short-term leases 2.6 2.1 Costs for low-value leases 14.2 12.5 197 .8 186.8 Amounts recognized in statement of cash flows Group MSEK 2025 2024 Total cash outflows attributable to leases 181.2 1 67.0 The cash outflow above include amounts for leases according to IFRS 16. Refer to Note 30 Financial risks and risk management for a maturity analysis of lease liabilities. Variable lease liabilities are minor. Property leases The Group leases premises for office, production and ware- house operations. The leases for office, production and ware- house premises normally have a term of three to ten years. Some leases contain an option to renew the lease for an addi- tional period at the end of the lease term. Some leases contain lease payments based on changes in local price indices. Some leases require the Group to pay charges relating to property taxes levied on the lessor. These amounts are determined annually . Extension and termination options Some leases contain extension or termination options that the Group can exercise or not exercise up to one year before the end of the non-cancellable lease term. Wherever practical, the Group seeks to include such options in new leases since it pro- vides flexibility for the operations. The options can only be exercised by the Group and not by the lessor. Whether or not it is reasonably certain that an extension option will be exercised is determined on the commencement date of the lease. The Group reviews whether or not it is reasonably certain that an extension option will be exercised if an important event occurs or significant changes in circumstances take place that are within the Group’s control. The Group’s leases for office, production and warehouse premises mainly comprise non-cancellable terms of three to ten years, which for the significant leases are extended for addi- tional periods of one to three years if the Group does not termi- nate the lease during the notice period. For office, production and warehouse premises, the Group makes the assessment in the majority of cases that it is not reasonably certain that the leases will be extended beyond the initial term, meaning that the lease term is usually deemed to be one period. Other leases The Group leases machinery , fittings, vehicles and equipment with lease terms of one to three years. In certain cases, the Group has an option to purchase the asset at the end of the lease term. In other cases, the Group guarantees the residual value of the leased asset at the end of the lease term. There are only insignificant extension options. Estimated residual value guarantees are reviewed at each balance sheet date to revalue the lease liability and right-of-use asset. The Group also leases machinery and IT equipment with lease terms of one to three years that are recognized as short- term leases and/or low-value leases. According to the Group’s policies, right-of-use assets and lease liabilities are not recog- nized for these leases. 81 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 32. Pledged assets, contingent liabilities and contingent assets Group MSEK Dec 31, 2025 Dec 31, 2024 Pledged assets In the form of pledged assets for own liabilities and provisions Chattel mortgages 381.6 320.6 Assets with restricted title 1.7 1.2 Pledged net assets 2,500.6 2,430.1 Total pledged assets 2,883.9 2,751.9 There are no other mortgages or pledged assets or any contingent liabilities. Parent Company MSEK Dec 31, 2025 Dec 31, 2024 Pledged assets In the form of pledged assets for own liabilities and provisions Shares, Group companies 2 ,997.5 2,673.9 Receivables from Group companies, internal loans 1,320.1 1,205.7 Total pledged assets 4, 31 7.6 3,879.6 Contingent liabilities Guarantees for subsidiaries for promissory notes 199.1 184.4 Guarantees for subsidiaries for Minority options 98.3 72.7 Guarantees for subsidiaries for rent commitments 103.9 116.9 Guarantees for subsidiaries for lease liabilities attributable to finance leases 40.1 0.0 Guarantees for subsidiaries for advance payments from customers and suppliers 30.4 0.0 Total contingent liabilities 471.8 373.9 There are no other mortgages or pledged assets. The Parent Company has provided an unlimited capital adequacy guarantee on behalf of the subsidiaries Solideq AS and Ställning Holding Noway AS. There are no other contingent liabilities. Note 34. Appropriation of the company’s profit or loss Proposed appropriation of profit Parent Company The following amounts in SEK are at the disposal of the Annual General Meeting: Share premium reserve 3,894,793,929 Retained earnings -672,047,643 Loss for the year -266,288,072 Total 2,956,458,214 The Board of Directors proposes that these funds be appropriated as follows: To be carried forward 2,956,458,214 of which share premium reserve 3,894,793,929 Total 2,956,458,214 Statement of the Board of Directors on the proposed dividend The Board of Directors proposes that no dividend be paid for 2025 financial year. Note 35. Group companies Parent Company MSEK 2025 2024 Accumulated cost At the beginning of the year 3,889.0 3,666.4 Acquisitions 148.4 38.0 Shareholders’ contributions paid 101.9 184.5 Divestments -442.1 0.0 Closing balance 3 ,69 7.1 3,889.0 Accumulated impairment At the beginning of the year -758.4 -342.2 Divestments 346.2 0.0 Reversed impairment during the year 9.1 0.0 Impairment for the year -313.1 -416.2 Closing balance -7 1 6.1 -758.4 Carrying amount on December 31 2,981.0 3, 130.6 Specification of the Parent Company’s and the Group’s direct holdings of participations in subsidiaries Subsidiary/Corp. Reg. No./Domicile % of voting rights Dec 31, 2025 Share in %1) Dec 31, 2025 MSEK Dec 31, 2025 Micropol Fiberoptic Holding AB, 559143-4518, Halmstad 100.0% 100.0% 141.6 Solideq Group AB, 559157-9957, Karlskoga 100.0% 100.0% 60.0 Stapp Group Holding AB, 559168-0912, Eskilstuna 100.0% 100.0% 25.5 Sappa Holding AB, 559163-0636, Gothenburg 100.0% 100.0% 456.7 Vefi Holding AB, 559205-5312, Gothenburg 100.0% 100.0% 20.9 Husvård Holding Norden AB, 559250-0168, Halmstad 100.0% 100.0% 397.6 Artex Holding AB, 559378-6774, Halmstad 100.0% 100.0% 119.0 PPP Holding AB, 559385-6627, Halmstad 100.0% 100.0% 84.0 Delta Global AB, 559388-7275, Halmstad 100.0% 100.0% 265.6 Waboba Holding AB, 559386-0363, Danderyd 100.0% 100.0% 75.5 Rodolfo Holding AB, 559403-7599, Stockholm 100.0% 100.0% 7.5 Absortech Group AB, 559084-6530, Falkenberg 100.0% 100.0% 186.8 Beans In Cup Holding AB, 559114-4091, Stockholm 100.0% 100.0% 475.6 Alfa Scandinavia Holding AB, 559434-0399, Stockholm 100.0% 100.0% 251.7 IM Vision Holding AB, 559445-3143, Jönköping 100.0% 100.0% 57.5 Eskilstuna Dynamics Holdings AB, 559445-3069, Eskilstuna 100.0% 100.0% 40.1 Alltronic Holding AB, 559445-3135, Halmstad 100.0% 100.0% 3 7.1 Impairment for the year is recognized in profit or loss on the line “Impairment of participations in subsidiaries” and relates to impairment of holdings in the subsidiaries Logiwaste Holding AB (MSEK –47.1), Alfa Scandinavia Holding AB (MSEK –55.0) and Delta Global AB (MSEK –211.0). Of the recognized divestments, a net MSEK -95.9 comprises intra-Group sales to companies in the Pamica Group in connec- tion with restructuring. Note 33. Profit/loss from participations in Group companies Parent Company MSEK 2025 2024 Dividends 5.0 0.0 Capital gains/losses, divestment of subsidiaries -0.5 0.0 Impairment of participations in subsidiaries -313.1 -416.2 Reversed impairment during the year 9.1 0.0 Total -299.4 -416.2 82 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Special Group Ätran Holding AB, 559485-2823, Halmstad 90.1% 90.1% 129.9 Alma Electronics Holding AB, 559519-4472, Halmstad 100.0% 100.0% 13.7 HTSM Eskilstuna Holding AB, 559519-4472, Halmstad 100.0% 100.0% 103.4 ABC Holding AB, 559534-1230, Halmstad 100.0% 100.0% 31.3 1) Refers to holding of capital. 2,981.0 Specification of the Parent Company’s and the Group’s direct holdings of participations in subsidiaries Subsidiary/Corp. Reg. No./Domicile % of voting rights Dec 31, 2024 Share in %1) Dec 31, 2024 MSEK Dec 31, 2024 Micropol Fiberoptic Holding AB, 559143-4518, Halmstad 100.0% 100.0% 141.6 Solideq Group AB, 559157-9957, Karlskoga 100.0% 100.0% 60.0 Stapp Group Holding AB, 559168-0912, Eskilstuna 100.0% 100.0% 25.5 Sappa Holding AB, 559163-0636, Gothenburg 100.0% 100.0% 456.7 Vefi Holding AB, 559205-5312, Halmstad 100.0% 100.0% 20.9 Husvård Holding Norden AB, 559250-0168, Halmstad 100.0% 100.0% 397.6 Artex Holding AB, 559378-6774, Gothenburg 100.0% 100.0% 119.0 PPP Holding AB, 559385-6627, Stockholm 100.0% 100.0% 84.0 Delta Global AB, 559388-7275, Halmstad 100.0% 100.0% 476.6 Waboba Holding AB, 559386-0363, Danderyd 100.0% 100.0% 75.5 Rodolfo Holding AB, 559403-7599, Stockholm 100.0% 100.0% 7.5 Absortech Group AB, 559084-6530, Falkenberg 100.0% 100.0% 186.8 Beans In Cup Holding AB, 559114-4091, Stockholm 100.0% 100.0% 475.6 Safe Solution Consulting i Sverige Holding AB, 559084-6571, Vellinge 100.0% 100.0% 0.0 Logiwaste Holding AB, 559420-7143, Halmstad 100.0% 100.0% 32.0 Alfa Scandinavia Holding AB, 559434-0399, Stockholm 100.0% 100.0% 219.9 Freysgruppen Holding AB, 559445-3051, Karlstad 100.0% 100.0% 86.8 IM Vision Holding AB, 559445-3143, Halmstad 100.0% 100.0% 57.5 Eskilstuna Dynamics Holdings AB, 559445-3069, Eskilstuna 100.0% 100.0% 40.1 Alltronic Holding AB, 559445-3135, Halmstad 100.0% 100.0% 3 7.1 Special Group Ätran Holding AB, 559485-2823, Halmstad 90.1% 90.1% 129.9 1) Refers to holding of capital. 3, 130.6 Non-controlling interests Subsidiaries with non-controlling interests. Non-controlling interests Subsidiaries Operating segment MSEK Dec 31, 2025 MSEK Dec 31, 2024 PPP Holding AB, 559385-6627, Stockholm Services 6.7 6.3 Alfa Scandinavia Holding AB, 559434-0399, Stockholm Services 3.4 0.2 Freysgruppen Holding AB, 559445-3051, Karlstad Services 0.0 3.0 Special Group Ätran Holding AB, 559485-2823, Halmstad Industry 7.0 8.3 1 7.1 1 7. 8 83 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 36. Specifications for statement of cash flows Adjustments for non-cash items MSEK 2025 2024 Group Depreciation 318.0 302.4 Unrealized exchange differences -0.2 -0.8 Capital gain/loss including profit/loss from discontinued operations 36.0 -9.6 Impairment of goodwill 136.1 336.0 Other impairment 66.1 16.4 Revaluation of earn-outs 1 7.2 -115.4 Change in accrued interest 32.5 -23.4 Discontinued operations -18.6 153.6 Other adjustments 3.3 -13.5 590.4 645.6 During the year, interest received amounted to MSEK 2.0 (2.2) and interest paid to MSEK -123.2 (-162.9). Parent Company Impairment of participations in subsidiaries 313.1 416.2 Reversals of impairment of participations in subsidiaries -9.1 0.0 Unrealized exchange differences 0.0 -0.1 Capital gains/losses 0.0 0.0 Change in accrued interest 1 7.7 -21.9 Other adjustments 9.9 4.6 331.6 398.8 During the year, interest received amounted to MSEK 145.8 (117.5) and interest paid to MSEK -103.8 (-127.2). Note 37. Transactions with related parties All transactions with related parties took place at market terms. The Group’s related parties are senior executives, Board members and companies under the control of Board members or senior executives of subsidiaries. For disclosures on remuneration of senior executives and Board members, refer to Note 7 Employ- ees, personnel costs and remuneration of senior executives. The Parent Company has a related party relationship with its Group companies. For more information, refer to Note 34 Group companies. All transactions between the Parent Compa- ny and its Group companies were eliminated in the consolidated financial statements. Of the Parent Company’s total net sales, 85% (100) is intra-Group sales and of the Parent Company’s total purchases, 1% (5) is intra-Group purchases. Pamica Group has signed an agreement with the related- pa rty company Pamica 5 AB under which Pamica Group sells management services to Pamica 5 at market-based prices. Reported net sales for the sale of management services to Pamica 5 AB amounted to MSEK 5.3 for the year. Receivables outstanding on the balance sheet date amounted to MSEK 0.9. During the first quarter of 2024, the Board of the company decided to discontinue the operations of the Safe Solutions sub- group with the intention of selling the operations. On January 31, 2025, Pamica Group AB’s subsidiary Safe Solutions Consult- ing i Sverige Holding AB sold all shares in the subsidiary Safe Solutions Consulting i Sverige AB and its wholly owned subsid- iaries. In January 2025, the company reorganization processes in Safe Solutions Consulting i Sverige AB and two subsidiaries gained legal force, contributing MSEK 19.0 in earnings in dis- continued operations. The sale generated a capital gain for the Group of MSEK –0.4 and a net cash flow of MSEK –3.0. The following tables show the statement of profit or loss for the dis- continued operations, the financial position of the discontinued operations and the condensed cash flow statement of the dis- continued operations. Statement of profit or loss, discontinued operations, MSEK 2025 2024 Discontinued operations Net sales 0.9 11.7 Other operating income 18.6 1.1 19.5 12.8 Raw materials and consumables -0.7 -1 7.1 Other external expenses -3.1 -13.4 Personnel costs -1.1 -10.1 Other operating expenses -0.1 0.0 EBITDA 14.4 -2 7. 8 Depreciation/amortization and impairment 0.0 0.0 EBITA 14.4 -2 7. 8 PPA-related depreciation/amortization and impairment 0.0 0.0 Impairment of goodwill 0.0 -153.6 Operating profit/loss (EBIT) 14.4 -181.4 Net financial items -0.5 -1.9 Profit/loss before tax 13.9 -183.4 Tax -0.2 -0.4 Profit/loss for the year 13.7 -183.7 Comprehensive income for the year 13.7 -183.7 Financial position, discontinued operations, MSEK Dec 31, 2025 Dec 31, 2024 Assets Intangible assets 0.0 6.2 Property, plant and equipment 0.0 0. 6 Right-of-use assets 0.0 7.0 Financial assets 0.0 0. 2 Current assets 0.0 6 .0 Total assets held for sale 0.0 2 0.1 Liabilities attributable to assets held for sale Non-current liabilities 0.0 2.8 Current liabilities 0.0 4 2.0 Total liabilities attributable to assets held for sale 0.0 44.8 Statement of cash flows, discontinued operations, MSEK 2025 2024 Net cash flow from operating activities -2.1 -21.8 Net cash flow from investing activities -3.0 -0.1 Net cash flow from financing activities -1.1 -4.8 Net increase in cash and cash equivalents, discontinued operations -6.2 -26.8 Note 38. Discontinued operations 84 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Note 39. Significant events after the balance sheet date No significant events occurred after the end of the financial year. N o t e 4 0. Significant estimates and judgements Company management has discussed developments in, the selection of and disclosures regarding the Group’s significant accounting policies and estimates with the Audit Committee, and the application of these policies and estimates. Important judgements when applying the Group’s accounting policies The preparation of the accounts and the application of accounting policies are often based on management’s judgments, estimates and assumptions that are considered to be reasonable at the time the judgment is made. Estimates and judgements are based on historical experience and a number of other factors that are deemed to be reasonable under the prevailing circumstances. The results of these are used to assess the carrying amounts of assets and liabilities that are not otherwise apparent from other sources. The actual outcome may deviate from these estimates and judgements. Estimates and assumptions are regularly reviewed. The most significant sources of uncertainty in the judgements and assumptions made when preparing the consoli- dated financial statements are presented below. Changes in assumptions may have a material impact on the financial state- ments in the periods in which the assumptions change. Impairment testing of goodwill and trademarks with indefinite useful lives Impairment testing involves assumptions on future conditions and estimates of parameters such as the discount rate, earnings and future profitability levels. A detailed description of this procedure is provided in Note 13 Intangible assets. Future events and new information may change these judgements and estimates. Acquisitions, Contingent earn-outs and Minority options Acquisition analyses use valuation models to determine the fair value of assets and liabilities at the time of the acquisition. The valuation methods require making several assumptions about future conditions and estimates of parameters, such as WACC, future cash flows and remaining economic lifetime. Due to these estimates and judgements, the final results may vary from the initially estimated outcome. 85 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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The Board of Directors’ certification The Board of Directors and CEO give their assurance that the Annual Report has been prepared in accordance with generally accepted accounting principles in Sweden and that the consoli- dated financial statements have been prepared in accordance with IFRS Accounting Standards as endorsed by the EU and that the Annual Report and the consolidated financial state- ments have been prepared in accordance with the adopted Euro- pean Sustainability Reporting Standards (ESRS) and the speci- fications adopted based on the EU Taxonomy Regulation 2020/852. The Annual Report and the consolidated financial statements provide a true and fair view of the Parent Company’s and the Group’s financial position and earnings. The Board of Directors’ Report for the Parent Company and the Group pro- vides a fair review of the performance of the Parent Company’s and the Group’s operations, financial position and earnings, and describes the material risks and uncertainties facing the Parent Company and the companies included in the Group. The consolidated statement of profit or loss and other com- prehensive income and statement of financial position and the Parent Company’s income statement and balance sheet will be presented for adoption at the Annual General Meeting to be held on May 26, 2026. The content of the Annual Report and the consolidated financial statements were adopted on April 17, 2026. Halmstad, April 17, 2026. Tomas Franzén Chairman Jan Klippvik Board member Ulrika Valassi Board member Ulrika Saxon von Essen Board member Johan Ryding Board member Lina Stolpe Board member Jan-Olof Svensson CEO Our auditor’s report for the Annual Report and the consolidated financial statements as well as our review report on the Sustainability Report were submitted on April 17, 2026. KPMG AB Jonas Eriksson Authorized Public Accountant 86 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Auditor’s Report To the general meeting of the shareholders of Pamica Group AB (publ), corp. id 559374-3643 Report on the annual accounts and consolidated accounts Opinions We have audited the annual accounts and consolidated accounts of Pamica Group AB (publ) for the year 2025, except for the su stainability report on pages 23-51. The annual accounts and consolidated accounts of the company are included on pages 20-86 in this document. In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act, and present fairly , in all material respects, the financial position of the parent compa- ny 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 performance and cash flow for the year then ended in accordance with IFRS Accounting Stan- dards, as adopted by the EU, and the Annual Accounts Act. Our opinions do not cover the sustainability report on pages 23-51. 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 share- holders adopts the income statement and balance sheet for the parent company and the group. Our opinions in this report on the annual accounts and consoli- dated 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 ethics 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 pro- hibited services referred to in the Audit Regulation (537 /2014) Article 5.1 have been provided to the audited company or, where applicable, its parent company or its controlled companies within the EU. We believe that the audit evidence we have obtained is suffi- cient and appropriate to provide a basis for our opinions. Key Audit Matters Key audit matters of the audit are those matters that, in our profes- sional judgment, were of most significance in our audit of the annual accounts and consolidated accounts of the current period. These mat- ters 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. Valuation of acquired intangible assets See disclosure 13 and accounting principles on pages 61-63 in the annual account and consolidated accounts for detailed informa- tion and description of the matter. Description of key audit matter As of 31 December 2025, the total value of goodwill, trademarks and customer relationships amounts to SEK 3,833 million, rep- resenting 62% of total assets, and is allocated to the Group’s cash-generating units. Impairment testing of goodwill and trademarks with indefinite useful lives is performed annually and whenever there is an indi- cation of impairment. Impairment testing of customer relation- ships and amortised trademarks is performed when there is an indication of impairment. Under the applicable regulations, the test must be performed using a prescribed method in which man- agement is required to make forward-looking assessments of both the internal and external conditions and plans of the business. Examples of such assessments include future cash inflows and outflows, which, among other things, require assumptions about future market conditions and thereby indirectly about how com- petitors can be expected to act. Another key assumption is the discount rate to be used to reflect that the estimated future cash inflows are subject to risk. In light of the above, there are signifi- cant judgments that are important for the financial reporting. Response in the audit We inspected the Company’s impairment tests to assess whether they have been performed in accordance with the prescribed methodology . We also assessed the reasonableness of the future cash inflows and outflows and the assumed discount rate by reviewing and evaluating management’s written documentation and plans. We also interviewed management and evaluated pri- or-year estimates against actual outcomes. We involved our valuation specialists within the audit team to ensure appropriate experience and competence in this area, primar- ily with respect to evaluating the valuation method, the discount rate, and assumptions relating to external markets and competitors. An important part of our work also involved evaluating how changes in assumptions may affect the valuation, i.e., perform- ing and reviewing the Group’s so-called sensitivity analysis. We also checked the completeness of the disclosures in the annual report and assessed whether they are consistent with the assumptions applied by the Group in its impairment testing and whether the information is sufficiently comprehensive to under- stand management’s judgments. 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 1-12, 23-51 and 90-93. 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 mate- rially 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 informa- tion, conclude that there is a material misstatement of this other information, we are required to report that fact. We have noth- ing to report in this regard. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsi- ble 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 accordance 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 responsi- ble 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. Rea- sonable assurance is a high level of assurance, but is not a guar- antee that an audit conducted in accordance with ISAs and gen- erally 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 87 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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or in the aggregate, they could reasonably be expected to influ- ence 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 pro- fessional judgment and maintain professional scepticism throughout the audit. We also: • I dentify 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 respon- sive to those risks, and obtain audit evidence that is suffi- cient 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 , intentional omissions, misrepresentations, or the override of internal control. • Obt ain an understanding of the company’s internal control rele- vant to our audit in order to design audit procedures that are appro- priate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. • Ev aluate 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. • C onclude 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 evi- dence 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 con- cern. If we conclude that a material uncertainty exists, we are required to draw attention 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. • Ev aluate the overall presentation, structure and content of the annual accounts and consolidated accounts, including the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation. • P lan and perform the group audit to obtain sufficient and appropriate audit evidence regarding the financial informa- tion 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 significant audit findings during our audit, including any sig- nificant 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 rela- tionships and other matters that may reasonably be thought to bear on our independence, and where applicable, measures that have been taken to eliminate the threats or related safeguards. 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 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 Pamica Group 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 statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year. Basis for Opinions We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are inde- pendent of the parent company and the group in accordance with pro- fessional ethics for accountants in Sweden and have otherwise fulfilled o ur ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffi- cient 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 appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the divi- dend is justifiable considering the requirements which the com- pany's and the group's type of operations, size and risks place on the size of the parent company's and the group’s equity , con- solidation requirements, liquidity and position in general. The Board of Directors is responsible for the company’s orga- nization and the administration of the company’s affairs. This includes among other things continuous assessment of the com- pany’s and the group's financial situation and ensuring that the company's organization is designed so that the accounting, management of assets and the company’s financial affairs oth- erwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing administra- tion 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: • h as undertaken any action or been guilty of any omission which can give rise to liability to the company , or • i n 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 appropria- tions 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 compa- ny , 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 judg- ment and maintain professional scepticism throughout the audit. The examination of the administration and the proposed appropriations of the company’s profit or loss is based primarily on the audit of the accounts. Additional audit procedures per- formed 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 violations would have particular importance for the company’s situation. We examine and test decisions undertaken, support for deci- sions, 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 whether the pro- posal is in accordance with the Companies Act. KPMG AB, Box 382, 101 27, Stockholm, was appointed audi- tor of Pamica Group AB (publ) by the general meeting of the shareholders held on 12 June 2025. KPMG AB or auditors operat- ing at KPMG AB have been the company's auditor since 2022. Stockholm 17 April 2026 KPMG AB J onas Eriksson Authorized Public Accountant 88 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Auditor’s limited assurance report of Pamica Group AB (publ):s sustainability statement To the general meeting of the shareholders of Pamica Group AB (publ), corporate identity number 559374-3643 Conclusion We have conducted a limited assurance engagement of the sus- tainability statement for Pamica Group AB (publ) (the “compa- ny”) for the financial year 2025. The sustainability statement is included on page 23-51 in this document. Based on our limited assurance engagement as described in the section Auditor's responsibility , nothing has come to our attention that causes us to believe that the sustainability state- ment does not, in all material respects, meet the requirements of the Swedish Annual Accounts Act which includes, • w hether the sustainability statement meets the requirements of ESRS, • w hether the process the company has carried out to identify reported sustainability information has been conducted as described in the sustainability statement, and • c ompliance with the reporting requirements of the EU:s Green Taxonomy Regulation Article 8. Basis for conclusion We have conducted the assurance engagement in accordance with FAR's recommendation RevR 19 The auditor’s limited assurance regarding the statutory sustainability statement. Our responsibility 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 matters The sustainability information for the prior year has not been subject to any assurance, and consequently no assurance of the comparative information in the sustainability statement for 2025 has been performed. Information other than the sustainability statement This document also contains information other than the sus- tainability statement and is found on page 1-22, 52-86 and 90-93. The Board of Directors and the Managing Director are responsi- ble for this other information. Our conclusion on the sustainability statement does not cov- er this other information and we do not express any form of assurance conclusion regarding this other information. In connection with our limited assurance engagement on the sustainability statement, our responsibility is to read the infor- mation 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 wheth- er the information otherwise appears to be materially misstated. If we, based on the work performed concerning this informa- tion, conclude that there is a material misstatement of this other information, we are required to report that fact. We have noth- ing to report in this regard. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsi- ble for the preparation of sustainability statement in accordance with Chapter 6, Sections 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 material misstatements, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express a conclusion with limited assurance on whether the sustainability statement has been prepared in accor- dance with Chapter 6, Sections 12–12f of the Swedish Annual A ccounts Act based on our review. The limited assurance engagement has been conducted in accordance with FAR's recommendation RevR 19 The auditor’s limited assurance regarding the statutory sustainabil- ity statement. This recommendation requires that we plan and per- form our procedures to obtain limited assurance that the sustainabili- ty statement is prepared in accordance with these requirements. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reason- able 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 reasonable 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 iden- tified if a reasonable assurance engagement had been performed. Our firm applies ISQM 1 (International Standard on Quality Management), which requires the firm to design, implement and operate a system of quality management, including policies and procedures regarding compliance with ethical requirements, profes- sional standards, and applicable legal and regulatory requirements. We are independent of Pamica Group AB (publ) in accor- dance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accor- dance 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 Managing Director prepare the sustain- ability statement, in order to design procedures that are appropriate u nder the circumstances, but not for the purpose of providing a con- clusion on the effectiveness of the company’s internal control. The r eview consists of making inquiries, primarily of persons responsible for the preparation of the sustainability statement, performing ana- lytical review, and conducting other limited review procedures. In conducting our limited assurance engagement, with respect to the process undertaken to identify the sustainability information to be reported, we have: • Obt ained an understanding of the Process by: • p erforming inquiries to understand the sources of the information used by management; and • r eviewing the company’s internal documentation of its Process; and • Ev aluated whether the evidence obtained from our review procedures regarding the Process implemented by the compa- ny was consistent with the description of the Process set out in the sustainability statement. In conducting our limited assurance engagement, with respect to the sustainability statement, we have performed, but were not limited to, the following: • T hrough inquiries, obtained a general understanding of the company's reporting and consolidation processes, including the company's internal control environment and information systems, relevant to the preparation of information in the sustainability statement. • Ev aluated whether information identified as material through the process the company has carried out is also included in the sustainability statement. • Ev aluated whether the structure and the presentation of the sustainability statement is in accordance with the require- ments of the ESRS. • P erformed inquiries with relevant personnel and analytical pro- cedures on selected disclosures in the sustainability statement. • P erformed substantive procedures through sample testing on selected disclosures in the sustainability statement. • T hrough inquiries, obtained understanding of the methods used to develop material estimates and how these methods were applied. • T hrough inquiries, obtained a general understanding of the process to identify economic activities which are eligible and aligned with the EU Green Taxonomy , and the corresponding disclosures in the sustainability statement. • P erformed substantive procedures on selected disclosures in the sustainability statement related to the EU Green Taxonomy . Inherent limitations in preparing the sustainability statement In reporting forward-looking information in accordance with ESRS, the Board of Directors and the Managing Director of Pamica Group AB (publ) are required to prepare the forward-look- ing information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by Pamica Group AB (publ). Actual outcomes are likely to be differ- ent since anticipated events frequently do not occur as expected. Stockholm 17 April 2026 KPMG AB Jonas Eriksson Authorized Public Accountant 89 Overview2025 Annual ReportPamica Operations Board of Directors’ Report Financial statements Other information Corporate governance
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Other information Other information Definitions of alternative performance measures ....... 91 Alternative performance measures ........................ 92 Financial calendar and contacts............................ 93 Overview Operations Board of Directors’ Report Financial statements Other informationCorporate governance 902025 Annual ReportPamica
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Definitions alternative performance measures Performance measure Definition Explanation Organic net sales growth Growth in net sales adjusted for the net effects of acquisitions, divestments and currency fluctuations. Acquisitions are included 12 months after they are consolidated. Divested operations are excluded from the comparative period to reflect continuing opera- tions and ensure comparability between periods. Indicates the net sales of the operations for the period compared with the preceding period, excluding acquired growth, divestments and currency effects. Items affecting comparability Items affecting comparability are larger items that affect comparability in that they do not recur with the same regularity as other items. Acquisition-related costs are included in items affecting comparability. In order to present the comparability and highlight the performance of the underlying operations between the periods, various profit and margin measures are pre- sented excluding items affecting comparability. EBITDA Operating profit/loss before depreciation and impairment of property, plant and equipment and intangible assets. Shows the earnings capacity of the company regardless of its capital structure and tax situation and is intended to be compared with other companies in the same industry. Adjusted EBITDA Operating profit before depreciation and impairment of property, plant and equipment and intangible assets, adjusted for items affecting comparability. Shows the earnings capacity of the company regardless of its capital structure and tax situation and is intended to be compared with other companies in the same industry. EBITDA margin EBITDA as a percentage of net sales. Shows the earnings capacity of the company regardless of its capital structure and tax situation and is intended to be compared with other companies in the same industry. Adjusted EBITDA margin Adjusted EBITDA as a percentage of net sales Shows the earnings capacity of the company regardless of its capital structure and tax situation and is intended to be compared with other companies in the same industry. EBITA Operating profit before impairment of goodwill as well as amortization and impairment of acquired surpluses. Shows the earnings capacity of the company regardless of its capital structure and tax situation and is intended to be compared with other companies in the same industry. Adjusted EBITA Adjusted operating profit before impairment of goodwill as well as amortization and impairment of acquired surpluses. Shows the earnings capacity of the company regardless of its capital structure and tax situation and is intended to be compared with other companies in the same industry. EBITA margin EBITA as a percentage of net sales. Shows the earnings capacity of the company regardless of its capital structure and tax situation and is intended to be compared with other companies in the same industry. Adjusted EBITA margin Adjusted EBITA as a percentage of net sales. Shows the earnings capacity of the company regardless of its capital structure and tax situation and is intended to be compared with other companies in the same industry. Performance measure Definition Explanation Operating profit (EBIT) Operating profit after depreciation/amortization and impairment of property, plant and equipment and intangible assets. Enables comparisons of profitability regardless of capital structure or tax situation. EBIT margin Operating profit (EBIT) as a percentage of net sales. Enables comparisons of profitability regardless of capital structure or tax situation. Organic EBITA growth Adjusted EBITA in comparable units. The effects of acquisitions, divestments and exchange rate changes are excluded. Acquisitions are included 12 months after they are consolidated. Divested operations are excluded from the comparative period to reflect continuing operations and ensure comparability between periods. Shows the organic earnings capacity of the operating activities and is intended to be compared with other companies in the same industry. Return on Equity Profit for the period attributable to the Parent Company’s owners divided by average equity per quarter attributable to the Parent Company’s owners. Return on equity measures, from an owner’s perspective, the return generated on the owners’ invested capital. Capital employed Total Equity and Net Debt reported as quarterly averages for the year. Capital employed shows how much capital is used in the operations and is thus one component of measuring the return on the operations. Return on Capital employed Adjusted EBITA as a percentage of capital employed. The components are calculated on quarterly averages for the year. Return on capital employed shows the Group’s profitability in relation to externally financed capital and equity. Net debt Non-current and current interest-bearing liabilities, non-current and current lease liabilities, non- current and current earn-outs as well as non- current and current minority options less cash and cash equivalents. Net debt is used to monitor the trend in liabilities, analyze the Group’s indebtedness and the Group’s ability to repay its liabilities using cash and cash equivalents. Net debt/Adjusted EBITDA R12M Net debt in relation to adjusted proforma EBITDA for the last 12 months. Adjusted proforma EBITDA for the last 12 months includes subsidiaries within the company group on the balance sheet date. Net debt in relation to adjusted EBITDA for the last 12 months provides a measure for net debt in relation to cash-generating earnings in the operations and thus provides an indication of the ability of the operations to pay its liabilities. The measure is used by financial institutions to measure creditworthiness. Equity ratio Total equity as a percentage of total assets. Equity ratio is used to analyze financial risk, and shows the share of the assets that is financed by equity. R12M Refers to the last 12 months. Enables comparisons with calendar years in interim reports. 91 2025 Annual ReportPamica Overview Operations Board of Directors’ Report Financial statements Other informationCorporate governance
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Alternative performance measures 2025 2024 Organic net sales growth Net sales, preceding period 4,534.9 3,491.9 Net sales, current period 5,114.2 4,534.9 Total acquired net sales 583.8 1,033.8 Total divested net sales 139.3 176.1 Organic net sales 4,391. 1 3,325.0 Organic net sales, adjusted comparative period 4,358.8 3,336.1 Organic net sales growth, % 0.7 -0.3 EBIT margin Net sales 5,114.2 4,534.9 Operating profit/loss (EBIT) 29.7 -141.7 EBIT margin, % 0.6 - 3.1 Adjusted EBITDA Operating profit/loss (EBIT) 29.7 -141.7 D&A and impairment, incl. impairment of goodwill 520.1 654.8 EBITDA 549.9 513.0 Items affecting comparability 120.9 65.1 Adjusted EBITDA 670.8 578. 1 Adjusted EBITA and adjusted EBITA margin Operating profit/loss (EBIT) 29.7 -141.7 D&A and impairment, acquired surpluses and goodwill 285.0 41 7.4 EBITA 314.7 275.7 Items affecting comparability 120.9 65.1 Adjusted EBITA 435.6 340.8 Net sales 5,114.2 4,534.9 Adjusted EBITA margin, % 8.5 7.5 2025 2024 Organic EBITA growth EBITA 314.7 275.7 Items affecting comparability 120.9 65.1 Adjusted EBITA 435.6 340.8 Total acquired EBITA 67.5 93.0 Total divested EBITA -6.3 -0.6 Organic EBITA 374.4 248.3 Organic EBITA, adjusted comparative period 341.3 272.3 Organic EBITA growth, % 9.7 -8.8 Return on equity, incl. discontinued operations Profit for the period attributable to Parent Company shareholders, R12M -161.7 -384.6 Equity attributable to Parent Company shareholders, quarterly averages for the year 2,514.8 2,533.6 Return on equity, % -6.4 -15.2 Return on capital employed, incl. discontinued operations Adjusted EBITA, R12M 431. 1 313.5 Total Equity 2,378.0 2,433.9 Equity, average five quarters 2,390.0 2,636.3 Net debt 2,234.5 2,309.8 Net debt, average five quarters 2,306.3 2,355. 1 Capital employed, as quarterly averages for the year 4,696.3 4,991.4 Return on capital employed, % 9.2 6.3 Equity ratio Total equity 2,378.0 2,433.9 Total total assets 6,221.5 6,313.9 Equity ratio, % 38.2 38.5 2025 2024 Net debt/adjusted proforma EBITDA, R12M Non-current and current interest-bearing liabilities 1,764.0 1,743.6 Non-current and current lease liabilities 496.1 542.9 Non-current and current earn-out liabilities 32.9 46.5 Non-current and current minority option liabilities 141.6 119.3 Cash and cash equivalents -200.1 -148.8 Net debt 2,234.5 2,303.5 Adjusted proforma EBITDA, R12M 724.9 69 7.7 Net debt/adjusted proforma EBITDA, R12M, x 3.08 3.30 92 2025 Annual ReportPamica Overview Operations Board of Directors’ Report Financial statements Other informationCorporate governance
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Financial calendar Interim report January–March (Q1) May 19, 2026 2026 Annual General Meeting May 26, 2026 Interim report January–June (Q2) August 27, 2026 Interim report, January–September (Q3) November 10, 2026 Contacts Pamica Group AB Kronobränneriet SE-302 42 Halmstad, Sweden www .pamica.se Produced in collaboration with Sthlm Kommunikation & IR