Annual report
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Long-term and active ownership ANNUAL AND SUSTAINABILITY REPORT 2025
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LNS Group, Storbritannien
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CONTENTS Storskogen’s formal annual accounts and consolidated accounts are presented on pp. 22–138. The statutory Sustainability Report is found on pp. 42–79. The official version of the annual accounts and consolidated accounts has been prepared in Swedish in the European Single Electronic Format (ESEF). As the EU has not yet approved the digital taxonomies for ESRS and Article 8, the Sustainability Report has not been tagged in the format specified in Chapter 6, Section 14 of the Swedish Annual Accounts Act. This report is also published in Swedish. In case of discrepancies between the Swedish and English versions, the Swedish version shall prevail. The Annual Report is submitted by the Board of Directors of Storskogen Group AB (publ), corporate identity number 559223-8694. Cover: The bridge Varvsbron in Helsingborg, where Stål & Rörmontage has been steel construction engineer. Photo: Fredrik Rege INTRODUCTION 4 About Storskogen 4 The year in brief 5 Comments from the CEO 6 STRATEGY AND BUSINESS MODEL 8 Business model 9 Strategy 10 Storskogen’s financial strategy and targets 13 Storskogen as an investment 15 Organisation and expertise 16 BUSINESS AREAS 17 Business area Services 18 Business area Trade 19 Business area Industry 20 Cases 21 DIRECTORS’ REPORT 22 Directors’ Report 24 Guidelines for remuneration 27 Risks and risk management 29 CORPORATE GOVERNANCE 32 Corporate Governance Report 33 Comment from the Chair 33 Board of Directors 38 Group management 39 Board of Directors’ report on internal control 40 SUSTAINABILITY REPORT 42 General information 43 Environmenal information 53 Social information 66 Corporate governance information 72 Appendix 75 FINANCIAL STATEMENTS 80 Financial statements and notes 81 Certification by the Board of Directors 138 Auditor’s Report 139 Limited Assurance Report 143 Definition of alternative performance measures 145 THE STORSKOGEN SHARE 148 The share 149 Information to shareholders 150 Glossary 151 Peter Lövgren, Wibe Group, Sweden Download print-optimised pdf
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Storskogen is an international group of businesses across trade, industry and services. With a long- term ownership horizon, Storskogen acquires and develops leading small and medium-sized businesses across selected industries. About Storskogen 33,097 SEK m in net sales in 2025 3,117 SEK m in adjusted EBITA in 2025 10,501 employees 3 business areas Storskogen’s offices Operational presence of business units Storskogen Annual and Sustainability Report 2025 4 CONTENTS Download print-optimised pdf INTRODUCTION ABOUT STORSKOGEN THE YEAR IN BRIEF COMMENTS FROM THE CEO STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE
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INTRODUCTION Significant events in 2025 • Net sales decreased by 3 percent to SEK 33,097 million (34,182), impacted by divestments of -3 percent. Organic sales growth was 2 percent. • Adjusted EBITA decreased by 3 percent to SEK 3,117 million (3,229), corresponding to an adjusted EBITA margin of 9.4 percent (9.4). Organic EBITA growth was -5 percent. • Profit for the period increased to SEK 1,199 million (116). • Basic/diluted earnings per share were SEK 0.63 (-0.03). • Adjusted diluted earnings per share were SEK 0.70 (0.57). • Cash flow from operating activities was SEK 2,451 million (3,098). • Three platform acquisitions were completed, with combined annual sales of SEK 235 million. Six add-on acquisitions were completed, with combined annual sales of SEK 102 million. • One business unit with annual sales of SEK 275 million was divested. • In March, Storskogen’s climate targets were approved by the Science Based Targets initiative, meaning they are scientifically grounded and aligned with the Paris Agreement’s 1.5°C target. • The Board of Directors proposes a dividend of SEK 0.11 per share (0.10). The year in brief Key performance indicators SEK m 2025 2024 2023 Net sales 33,097 34,182 36,006 Adjusted EBITA 3,117 3,229 3,238 Adjusted EBITA margin, % 9.4 9.4 9.0 Basic earnings per share, SEK 0.63 -0.03 0.47 Diluted earnings per share, SEK 0.63 -0.03 0.46 Cash flow from operating activities 2,451 3,098 3,361 Interest-bearing net debt/adjusted RTM EBITDA, x 2.3 2.3 2.5 Return on capital employed, % 10.2 10.4 10.1 Adjusted cash conversion, % 74 94 102 Net sales Adjusted EBITA Distribution of net sales by business area1) Services: SEK 9,232 m Trade: SEK 9,588 m Industry: SEK 14,319 m 1) The total figure includes SEK –42 million for Group operations. 33,097 0 10,000 20,000 30,000 40,000 20252024202320222021 SEK m 0 1,000 2,000 3,000 4,000 20252024202320222021 SEK m 0 10,000 20,000 30,000 40,000 20252024202320222021 SEK m 0 1,000 2,000 3,000 4,000 20252024202320222021 SEK m INTRODUCTION ABOUT STORSKOGEN THE YEAR IN BRIEF COMMENTS FROM THE CEO STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf Storskogen Annual and Sustainability Report 2025 5
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The past year was characterised by a persistently chal - lenging economic climate, with subdued demand across several markets and continued geopolitical uncertainty. At the same time, further steps were taken in the determined efforts to strengthen the Group’s financial position. Over the past three years, we have reduced our net debt by approximately SEK 4 billion, with a particular emphasis on lowering interest-bearing debt. These efforts have had clear financial results and have been a contributing factor to the consistent increase in adjusted earnings per share (LTM) over the past seven quarters. The maturity profile is now balanced, with better distribution over several years, which has significantly strengthened the Group’s financial flexibility. Overall, these measures have improved our position as we enter 2026. A stronger company – structurally and operationally Storskogen is a different company today compared to a few years ago. In addition to a stronger balance sheet with significantly lower debt, we have streamlined the Group and reduced the number of verticals within our business areas. This ensures that our decentralised model operates with the right balance between autonomy in the business units and central support. It also fosters collaboration, knowledge sharing and synergies between business units. Our business units have concentrated on cost efficiency, refining customer offerings, increasing the degree of digitalisation and improving pricing strategies. Efforts to increase working capital, combined with strong cash flow, have been key to reducing our leverage. During the third quarter, our priorities gradually shifted towards growth. With a more robust financial foundation and a more focused organisation, we are well positioned to allocate capital to the opportunities we find most attractive. Sharpened scope and clearer investment direction The core of the Storskogen model – decentralisation, diver - sification, active ownership and a long-term perspective – remains constant. These principles continue to shape how we create stability and the ability to scale. At the same time, we have tightened our investment focus. Our investment themes – automation, digitalisation, energy and sustainability, health and wellbeing, and infra - structure – strengthen the alignment of future acquisitions with the long-term structural trends that are most relevant to our business. These themes span all business areas and are already embedded in large parts of our existing portfolio. Although our growth focus is now more defined, diver - sification remains essential. Balancing exposure across geographies and sectors remains a cornerstone of our long-term ambition to achieve stable profit growth across business cycles, enabling us both to mitigate risks and to seize opportunities. After several years of dedicated efforts to strengthen our financial position and implement targeted operational improvements, Storskogen entered a new phase towards the end of 2025. We are now shifting our focus back to growth – maintaining a strong emphasis on organic growth whilst complementing it with acquisitions. Focusing on long-term growth INTRODUCTION ABOUT STORSKOGEN THE YEAR IN BRIEF COMMENTS FROM THE CEO STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf Storskogen Annual and Sustainability Report 2025 6 COMMENTS FROM THE CEO
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Moving towards growth As we enter this next phase, we are gradually returning to acquisition driven growth. We are allocating capital in a selective and disciplined manner, with the long-term ambition of reaching an average annual EBITA growth rate of 15 percent. The work we have undertaken to strengthen the balance sheet is crucial in enabling a stable rate of acquired growth over time. Our focus remains on well-managed, profitable small and medium-sized companies with strong cash flows and leading market positions. These companies are the foundation of Storskogen. We see significant acquisition opportunities within our investment themes and in markets where we already have an established presence. A par - ticular focus is on increasing the share of sales outside of Sweden, which accounted for 55 percent in 2025. In line with this strategy, we completed three platform acquisitions in markets outside Sweden and six strategic add-on acquisitions to strengthen existing business units, primarily during the second half of the year. These com - panies were acquired within our investment themes, at attractive multiples and with a combined margin exceed - ing 20 percent. We are convinced that these acquisitions will add value to Storskogen over time, enhancing our competencies and supporting our long-term ambitions. Looking ahead Storskogen now stands on firmer ground: a stronger balance sheet, a clearer structure, enhanced operational capabilities and a clear focus on profitable growth. We are well prepared for an environment where demand is expected to return gradually and where our business units can capitalise on the improvements they have made over the past years. I would like to extend my sincere gratitude to all colleagues across our business units and within the Storskogen organisation. Our decentralised model is founded on the commitment and expertise of the people in our companies, and this year has once again highlighted the strength, resilience and entrepreneurial spirit that exists within the Group. I look forward to continuing our journey in 2026. The foun - dation is strong, the direction is clear, and we are ready to return to growth. Christer Hansson, CEO “ The foundation is strong, the direction is clear, and we are ready to return to growth.” INTRODUCTION ABOUT STORSKOGEN THE YEAR IN BRIEF COMMENTS FROM THE CEO STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf Storskogen Annual and Sustainability Report 2025 7 COMMENTS FROM THE CEO
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Strategy and business model Mission We empower businesses to realise their full potential Vision To be the leading international owner of small and medium-sized businesses Download print-optimised pdf INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS MODEL STRATEGY STORSKOGEN’S FINANCIAL STRATEGY AND TARGETS STORSKOGEN AS AN INVESTMENT ORGANISATION AND EXPERTISE BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS
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Storskogen acquires and develops small and medium-sized businesses to create profitable growth and stability across business cycles. Business model The Storskogen model Result Opportunity 3. 2.1. Value creation Shareholders Exposure to diversified group of small and medium-sized businesses with the ambition of creating stable profit growth across business cycles. Business sellers/business units Long-term, decentralised ownership model that empowers businesses to realise their full potential. Employees Opportunities for development and knowledge sharing within the Group. Society Commitment to entrepreneurship benefits local society. 1. Opportunity Evergreen oppo rtunity to acquire profitable companies with proven business models in selected industries. Attractive return potential driven by lower valuation of small and medium-sized businesses. Value-creation opportunities through professionalisation, synergies and business development. 2. The Storskogen model Long-term perspective and stability ensure com p anies’ future competitiveness. Decentralisation promotes entrepreneurship. Active ownership enables businesses to realise their full potential. Diversification is central to spread risks and take advantage of opportunities. 3. Result Profitable gr owth is generated by reinvesting cash flows into both new acquisitions and the development of existing businesses. Geographic and industry diversification creates stability across business cycles. Storskogen Annual and Sustainability Report 2025 9 BUSINESS MODEL Download print-optimised pdf INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS MODEL STRATEGY STORSKOGEN’S FINANCIAL STRATEGY AND TARGETS STORSKOGEN AS AN INVESTMENT ORGANISATION AND EXPERTISE BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS
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Storskogen was founded on the principle of being a next-generation owner of stable small and medium-sized businesses. Returns generated from the Group are reinvested to create organic and acquired growth. The opportunity to acquire and develop small and medium-sized businesses Evergreen opportunity Entrepreneurial businesses are the back- bone of local communities and the global economy by creating growth and employ- ment opportunities. Many successful small and medium-sized companies with proven business models eventually require a long- term owner to secure their competitiveness and to realise their full potential. Storskogen aims to bridge this gap. The market for acquiring and developing such businesses represents an evergreen opportunity. In Europe alone, there are an estimated 230,000 businesses with between 50 and 250 employees and less than EUR 50 million in sales, with many more globally. Attractive return potential Small and medium-sized businesses are typically valued lower than large companies due to risks such as increased sensitivity to market changes and a higher dependency on a few key individuals, customers or supp- liers. Even well-managed companies with proven business models can struggle to att- ract buyers, especially if they are located far away from potential buyers. These factors create favourable conditions for Storskogen, making these kinds of companies attractive and scalable investment opportunities. Value-creation opportunities Small and medium-sized businesses often have untapped potential that can be unlocked by joining a larger group like Storskogen. Areas that are commonly challenging for smaller companies include digitalisation, internationalisation, talent recruitment and sustainability requirements. By providing access to capital, expertise and knowledge sharing, Storskogen supports its business units in improving operational effi- ciency, driving growth and realising their full potential. Fon Anlegg, NorwayStorskogen Annual and Sustainability Report 2025 10 STRATEGY Download print-optimised pdf INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS MODEL STRATEGY STORSKOGEN’S FINANCIAL STRATEGY AND TARGETS STORSKOGEN AS AN INVESTMENT ORGANISATION AND EXPERTISE BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS
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Storskogen’s model is built on decentralised, long-term and active ownership, enabling business units to retain their entrepreneurial spirit while benefiting from the support of a larger, diversified group. The Storskogen model Long-term perspective and stability When small and medium-sized companies face a change of ownership, sellers often look for a buyer who can carry the company forward in the same spirit. Key concerns for sellers often include the continued develop- ment of the business and the wellbeing of its employees. This aligns with Storskogen’s business model, which aims to create long- term growth and stability for its companies. Decentralisation, entrepreneurship, scalability Decentralisation is fundamental to creating scalability, meaning that new companies can be acquired with a limited central orga- nisation. Storskogen encourages indepen- dence and an entrepreneurial spirit. This ensures that the businesses, which are clo- sest to their customers, suppliers and mar- kets, can manage day-to-day operations efficiently and seize growth opportunities. Active ownership Storskogen’s central organisation provides strategic and operational support in areas such as investment decisions, succession planning, sustainability initiatives and cor- porate governance. Support is provided through board work and supplemented with monthly follow-up and activities tailored to the needs of the business units. Storskogen’s network of business units enables both internal and external syner- gies. Internal synergies include business transactions between companies and the use of shared resources. Examples of exter- nal synergies include framework agre- ements to optimise procurement processes and purchasing. Collaboration is supported by a shared digital platform, as well as various types of forums and recurring networking activities that promote know- ledge exchange. CEO’s and other key indivi- duals also contribute by serving on each other’s boards, which helps to spread experience and proven working methods. Diversification A central aspect of the Storskogen model is diversification, both to mitigate risks and to enable investments in areas with the best expected returns. Diversification is achieved by operating across different geographies and sectors, providing exposure to various trends, drivers and business cycles. The effect is illustrated below, where the varied development of the business areas collecti- vely provides a stable margin for the Group. Adjusted EBITA margin Session Map, Sweden 6 9 12 15 20252024202320222021 % Group Services Trade Industry Storskogen Annual and Sustainability Report 2025 11 STRATEGY Download print-optimised pdf INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS MODEL STRATEGY STORSKOGEN’S FINANCIAL STRATEGY AND TARGETS STORSKOGEN AS AN INVESTMENT ORGANISATION AND EXPERTISE BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS
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Storskogen’s strategy for owning and developing its business units is designed to generate profitable growth and stability across business cycles. Cash flows are reinvested to create long-term value for Storskogen’s stakeholders. Profitablegrowth Within Storskogen’s business areas, condi- tions for increased profitability are created through operational improvements, syner- gies, collaboration and other network effects. Generated cash flows are reinve- sted in both new acquisitions and organic growth initiatives, creating a cycle of profi- table growth. Stability over business cycles Through its three business areas, Storskogen strives for a well-balanced composition of business units. Geographic and operational diversification creates the conditions for stable profit growth across business cycles. Capital allocation Storskogen invests cash flows in areas expected to deliver the best potential long- term returns. Investments focus on either organic expansion within the existing Group or acquisitions: • Platform acquisitions create standalone business units. • Add-on acquisitions strengthen an existing business unit, for example by creating economies of scale or expand- ing its offering, capabilities or geographic presence. Investments in both organic initiatives and acquisitions are based on five investment themes: • Health and wellbeing • Automation • Energy and sustainability • Digitalisation • Infrastructure These themes already characterise a signif- icant part of the existing Group and have strong growth potential, supported by a number of long-term macro trends. Investment decisions also consider exposure to different end markets, ensuring that Storskogen is not overly dependent on demand from a specific customer segment or industry. Balanced expansion Storskogen aims to achieve growth throughout the business cycle, whether organic or acquired. To enable this, main- taining a balanced leverage ratio is essen- tial to ensure financial flexibility even in changing market conditions. The composition of the Group is conti- nuously reviewed to ensure that the busi- ness units contribute to the Group’s long- term targets and strategy. If a business unit no longer does so, divestment may be considered. By combining a clear capital allocation strategy, focused investment themes and financial discipline, Storskogen creates the foundation for profitable growth and builds a stable Group that can generate long-term value for its stakeholders. Profitable growth and stability ARAT Group, SwedenStorskogen Annual and Sustainability Report 2025 12 STRATEGY Download print-optimised pdf INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS MODEL STRATEGY STORSKOGEN’S FINANCIAL STRATEGY AND TARGETS STORSKOGEN AS AN INVESTMENT ORGANISATION AND EXPERTISE BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS
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Continued debt portfolio optimisation In 2025, Storskogen continued its debt port- folio optimisation initiatives, including extending its maturity profile. During the year, bonds with maturity in 2025 and 2027 were repurchased and refinanced with new bonds maturing in 2029 and 2030. These activities extended the average maturity and reduced the average margin on out- standing bonds considerably. Interest-bearing debt was reduced by SEK 807 million over the year. The reduction was possible due to continued strong cash flows from the business units, effective cash management and lower interest expenses. Debt portfolio as at 31 December As at 31 December 2025, the debt portfolio had the following maturity profile and inter- est rate margin: Bond maturity Margin (+3m Stibor) 2027 3.75% 2028 3.25% 2029 2.90% 2030 2.65% A balanced capital structure is of major importance for shareholders’ risk exposure and returns, as well as for the continued development of the business operations. Storskogen’s financial strategy and targets Debt portfolio structure (SEK m) Composition of the debt portfolio and amounts as at 31 December 2025. Bonds Bank loans1) Credit facility (utilised) 1) 1) The illustration reflects the February 2026 extension of the bank loan to 2028 and the credit facility to 2029. Amounts as at 31 December 2025. Available liquidity (SEK m) As at 31 December 2025, S torskogen’s available liquidity was SEK 4,512 m illion, distributed over cash and cash equiv- alents and unutilised credit facilities. Cash and cash equivalents Unutilised credit facilities H2H1H2H1H2H1H2H1H2H1 1,250 3,624 1,250 600 1,250 1,000 2026 2027 2028 2029 2030 1,332 3,180 STRATEGY Storskogen Annual and Sustainability Report 2025 13Download print-optimised pdf INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS MODEL STRATEGY STORSKOGEN’S FINANCIAL STRATEGY AND TARGETS STORSKOGEN AS AN INVESTMENT ORGANISATION AND EXPERTISE BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS
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1) Calculated as adjusted EBITA in relation to net sales. LTM refers to the last twelve months. 2) Calculated as operating cash flow in relation to adjusted EBITDA. LTM refers to the last twelve months. 3) Refers to an average annual growth (CAGR) over three years (2025-2027). Outcome for 2025 only. 4) Calculated as interest-bearing net debt in relation to adjusted RTM EBITDA. RTM refers to rolling twelve months (adjusted for acquisitions and divestments). Adjusted EBITA margin (LTM)1 Adjusted cash conversion (LTM)2 Adjusted EBITA growth (CAGR)3) Interest-bearing net debt/ adjusted RTM EBITDA4) Target >10% >70% 15% 2.0–3.0x Outcome 9.4% 74% -3% 2.3x Financial targets for the period from 2025 to 2027 margins in the Industry business area due to significant negative currency effects. This was partly offset by a certain improvement in the margin in the Trade business area. Demand remained weak in some seg- ments, particularly consumer and construc- tion, which negatively impacted both adjusted EBITA growth and the EBITA margin. Storskogen’s adjusted EBITA growth was –3 percent during the year. Cashflowconversionexceededtarget The business areas’ continued focus on strong cash flows led to an adjusted cash conversion of 74 percent for 2025, exceed- ing the 70 percent target. Financial targets for 2025 to 2027 Storskogen’s financial targets and the out- come for 2025 are presented in the table below. Development of adjusted EBITA in a challenging market Storskogen’s adjusted EBITA for 2025 was slightly lower than in the previous year. Despite a market that remained challenging with increased geopolitical risk and trade conflicts, Storskogen was able to retain its focus on cash flows and reduce its inter- est-bearing debt, prioritise organic profit growth and gradually return to acquisition driven growth. The adjusted EBITA margin was 9.4 per- cent. It was adversely affected by lower Interest-bearing net debt within target range Interest-bearing net debt/adjusted RTM EBITDA amounted to 2.3x at year-end, in line with the previous year and within the target range of 2–3x. The level was kept stable throughout the year, despite the completion of several acquisitions in the second half of the year. This was made possible by strong cash flows and a robust financial position. Scandinavian Cosmetics, SwedenStorskogen Annual and Sustainability Report 2025 14 STRATEGY Download print-optimised pdf INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS MODEL STRATEGY STORSKOGEN’S FINANCIAL STRATEGY AND TARGETS STORSKOGEN AS AN INVESTMENT ORGANISATION AND EXPERTISE BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS
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Unique exposure An investment in Storskogen provides unique exposure to small and medium- sized unlisted companies, which are generally hard for investors to access. Stor s kogen’s business units have sales of approximately SEK 300 million (RTM) on average, are market leaders in their seg - ments, generate strong cash flows and drive positive, sustainable development in their respective industries. Proven acquisition model Storskogen has a proven acquisition model with clear acquisition criteria that take the Group’s overarching financial and sustain- ability targets into account. This model cre- ates a large and qualitative acquisition deal flow, enabling diversification within the Group and contributing to profitable growth. Storskogen’s systematic evaluation of acquisition candidates ensures the high quality of the acquired companies. Long-term value creation Storskogen’s long-term ownership requires the business units to be persistently profita- ble and able to adapt to changing market conditions, for example, in terms of legisla- tion, customer and consumption patterns, and in terms of global challenges, such as climate change. Storskogen has an active but decentralised ownership model, which means that its business units can retain a great deal of responsibility and independ - ence while Storskogen provides expertise, funding and opportunities for knowledge sharing. Collective expertise Storskogen’s business area organisation employs people with expertise across various sectors, often with prior experience as CEO or CFO. The business areas are supported by other central functions with expertise in areas such as finance, sustain- ability, M&A, business development, com- munication and legal. The local presence of Storskogen’s central organisation in several geographical market areas also provides excellent local and market knowledge. Diversification Through its business units, Storskogen cov- ers three business areas and has presence in about 30 countries. Historically, the busi- ness units have been resilient in economic downturns, and the operational and geo- graphical diversification provides the Group with good conditions for stamina and sta- bility, also in the future. Storskogen focuses on acquisitions aligned with five investment themes: health and wellbeing, automation, energy and sustainability, digitalisation and infrastructure. Strongcashflowsenable sustainableprofitgrowth Storskogen has demonstrated persistently strong cash flows, as illustrated in 2025 by an adjusted cash conversion of 74 percent and cash flow from operating activities of SEK 2 ,451 million. Storskogen’s ability to gen - erate solid cash flows that can be reinves- ted in its business units and new acquisitions enables sustainable profit growth over time and strengthens the Group’s financial position and flexibility. Storskogen offers unique exposure to small and medium-sized companies with the potential to create long-term, sustainable growth. Storskogen as an investment Yvonne Smångs, Wibe Group, SwedenStorskogen Annual and Sustainability Report 2025 15 STRATEGY Download print-optimised pdf INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS MODEL STRATEGY STORSKOGEN’S FINANCIAL STRATEGY AND TARGETS STORSKOGEN AS AN INVESTMENT ORGANISATION AND EXPERTISE BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS
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Organisational structure Storskogen’s skills and organisation are key to successfully acquiring and developing companies. The central organisation in the Nordic region, DACH, Asia and the UK com- bines great industrial expertise with local market knowledge. The business units are supported by three business area organisa- tions with industry-specific expertise and by central functions in areas such as M&A, sustainability, finance, human resources, legal and communication. Leadership and human resources development In 2025, leadership development was a focus area in the central organisation, and a leadership programme was implemented for the business area organisation, Group management and personnel managing other employees. The programme aimed to establish a common leadership frame- work, strengthen leadership capabilities and provide a platform for learning and human resources development, making the organisation better equipped to manage business units so that they can reach their full p otential. Acquiring and developing companies places demands on corporate culture and skills, as well as on employee commitment within the central organisation. Storskogen strives to ensure effective resource allocation, good corporate governance, operational excellence and human resources development. Organisation and expertise Over the year, efforts were also made to increase cooperation through cross-func- tional teams, allowing for more efficient task completion and better use of employees’ skills. One example is when an Investment Director presented a business challenge to employees from other teams, resulting in concrete proposals and actions that have been taken forward in the work with the business unit. Employees and work environment Storskogen takes a long-term approach to ensuring wellbeing, motivation and a good work environment. Regular employee sur- veys, conversations and team follow-up meetings are conducted to monitor job satisfaction, performance and development in the central organisation. In 2025, the surveys conducted indicated very high employee engagement, as has been the case since these surveys were first initiated. Diversity is considered when recruiting, and issues related to inclusion and discrimi- nation are followed up in employee surveys to ensure that Storskogen makes the most of all skills. For further information on Storskogen’s organi- sation, see the Sustainability Report on p. 42. A long-term approach – We focus on long-term success. – W e invest in people and long-term relations. – W e are sustainable and strive to be relevant from a hundred-year perspective. Entrepreneurial – We focus on business opportunities and cost- efficiency. – We are driven, solution and action-oriented. – We are innovative, open to new ideas and fuelled by the mindset of never giving up. – We appreciate and understand entrepreneurs. Professional – We make disciplined and fact-based decisions. – W e invest time in self-development – always striving for improvement. – W e are honest and transparent. – W e aim to set clear expectations and deliver on established targets. Respectful – W e adapt to every context and situation. – W e help our colleagues. – W e meet people on equal terms in all our inter a ctions. – W e respect other people’s competence and are open and curious to learn from each other. Storskogen’s values Storskogen’s four values are deeply rooted in the history of the Group: entrepreneurial, respectful, a long-term approach and pro- fessional. These values guide Storskogen’s employees in their strategic and daily work and form the basis of Storskogen’s recruit- ment processes. STRATEGY Storskogen Annual and Sustainability Report 2025 16Download print-optimised pdf INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS MODEL STRATEGY STORSKOGEN’S FINANCIAL STRATEGY AND TARGETS STORSKOGEN AS AN INVESTMENT ORGANISATION AND EXPERTISE BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS
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INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS BUSINESS AREA SERVICES BUSINESS AREA TRADE BUSINESS AREA INDUSTRY CASES DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf Business areas Joakim Kristoffersson, BR Solutions, Sweden
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Operations and structure The Services business area comprises two verticals: Infrastructure Services, covering land contracting, installations and rail, and Business Services, specialising in digitalisation, education, logistics and technical advisory. The business area primarily serves professional customers, including the public sector. The business units provide solutions that reinforce infrastructure that is essential for society and support companies in their efforts related to energy efficiency, electrification of transport and industry, and digitalisation. Strategy and market The Services business units are characterised by low capital tied up and a high proportion of personnel costs, with revenues largely directly linked to hours worked and capacity. Both strategic and operational efforts are being made in the business units to strengthen their development and long-term profitability. The focus is operational excellence and to improve resource use across business units. During the year, efforts to advance digitalisation and stand- ardisation were intensified in order to strengthen efficiency, structure and scalability. Most companies with a significant impact on Storskogen’s climate targets belong to this business area. These are primarily logistics and infrastructure companies with their own lorries and machinery. Their business plans include concrete activities to drive the transition to lower emissions, both in the short term and long term. For example, the business unit’s largest logistics company has begun transitioning to fossil-free fuels, and parts of the owned fleet are already powered exclusively by electricity and HVO. Development over the year Net sales in the Services business area decreased by 10 percent over the year to SEK 9,232 million (10,254). Organic sales growth was -5 percent. Adjusted EBITA decreased by 9 percent to SEK 1,001 million (1,097), resulting in an adjusted EBITA margin of 10.8 percent (10.7). Organic EBITA growth was -10 percent. Many business units in Infrastructure Services experienced weak demand and delayed project starts. This was largely due to their exposure to the construction market, which remained very weak. This was also the main reason for the year’s negative organic EBITA growth. Business units in the Business Services vertical, mainly in logistics and digital services, reported stable full-year results and continued strong demand for their services. All in all, the reported profitability was in line with the previous year despite challenging market conditions. For information on transactions during the year, see pp. 100–103. Key performance indicators SEK m 2025 2024 2023 Net sales 9,232 10,254 11,346 Adjusted EBITA 1,001 1,097 1,057 Adjusted EBITA margin, % 10.8 10.7 9.3 Number of employees 3,353 3,395 4,352 Number of business units 53 53 58 Net sales growth Adjusted EBITA growth Net sales, % SERVICES By vertical: Infrastructure Services 58% Business Services 42% By geographical area: Sweden 65% Norway 9% Switzerland 7% Denmark 6% Germany 6% United Kingdom 4% Other 3% -9 %-10 % BUSINESS AREAS Storskogen Annual and Sustainability Report 2025 18 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS BUSINESS AREA SERVICES BUSINESS AREA TRADE BUSINESS AREA INDUSTRY CASES DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Key performance indicators SEK m 2025 2024 2023 Net sales 9,588 9,576 10,048 Adjusted EBITA 831 801 804 Adjusted EBITA margin, % 8.7 8.4 8.0 Number of employees 1,888 2,280 2,477 Number of business units 26 25 32 Operations and structure The Trade business area comprises two verticals: Professional Products and Consumer Products. The business units develop, market and distribute leading brands to professional customers and the consumer market in sports and outdoor recreational activities, beauty and home interior. They are active in segments with strong customer relations, with their own brands or exclusive dis- tribution agreements. Digitalisation, automation and changed consumption patterns are placing new demands on availability and service. These demands are being met through strong brands, wide distribution and customised offerings that ensure continued competitiveness in a changing market. Strategy and market The Trade business units build brands and sell products without extensive in-house production, and their profitability is therefore reliant on purchasing strategies, pricing and efficient ware- housing and logistics management. The business area focuses on improving profitability through product offering optimisation, brand positioning, cash flows and business models. The focus is on organic growth, reduced capital tied up, currency management and creating preparedness to respond swiftly to change and new business opportunities. As a large part of the operations involve consumer products, sustainability is a central factor for retailers and consumers alike. Consequently, the business area drives product development and exerts influence on producers and partners regarding working conditions and social responsibility. Competition is mainly driven by price, range and availability, making continuous improve- ments and coordination imperative to long-term competitiveness. The business area benefits from global trends, including an ageing population, growing interest in lifestyle issues and an increased focus on health and wellbeing. Development over the year Net sales in the Trade business area were SEK 9,588 million (9,576), with an organic sales growth of 5 percent. Adjusted EBITA increased by 4 percent to SEK 831 million (801), resulting in an adjusted EBITA margin of 8.7 percent (8.4). Organic EBITA growth for the full year was 4 per- cent. The Trade business area noted continued cau- tious consumer behaviour during the year due to global uncertainty, which affected demand. Even if consumer confidence showed some signs of recovery in the second half of 2025, sales and price initiatives, focus on efficiency and cost savings continue, which is expected to contribute positively as demand recovers further. Growth in Consumer Products was mainly driven by health and beauty, while continued weak demand was noted in home interior. Several business units benefited from economies of scale, increased efficiency and a stronger Swedish krona. Professional Products noted a somewhat stronger demand and reported improved profitability during the year, with positive signals regarding the business cycle in 2026, despite continued geopolitical concerns. For information on transactions during the year, see pp. 100–103. Net sales growth Adjusted EBITA growth Net sales, % TRADE By vertical: Consumer Products 67% Professional Products 33% By geographical area: Sweden 51% Norway 16% United Kingdom 10% Denmark 5% Switzerland 4% Germany 3% Other 11% 4 %0% BUSINESS AREAS Storskogen Annual and Sustainability Report 2025 19 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS BUSINESS AREA SERVICES BUSINESS AREA TRADE BUSINESS AREA INDUSTRY CASES DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Key performance indicators SEK m 2025 2024 2023 Net sales 14,319 14,416 14,662 Adjusted EBITA 1,426 1,548 1,646 Adjusted EBITA margin, % 10.0 10.7 11.2 Number of employees 5,181 5,053 5,147 Number of business units 35 37 39 Net sales growth Adjusted EBITA growth Net sales, % Operations and structure The Industry business area comprises three verticals: Product Solutions, where the business units develop and produce innovative industrial products from proprietary leading brands, Indus- trial Technologies, which provides customised manufacturing solutions and unique designs, and Automation, which provides advanced automation, integrated systems and electronics. The business area primarily serves professional customers in the engineering industry and other manufacturing industries. Through more effective utilisation of resources, increased productivity, and technologically advanced and customised solutions, the business area strengthens the competitiveness of its customers. Strategy and market Many of the business units produce physical products through manufacturing and processing, resulting in capital tied up in machinery, premises and warehouses. Scalability is mainly created through streamlining, automation and improved resource utilisation, while profitability is sensitive to prices of raw materials, energy costs and business cycles. Connected production systems, data mining and advanced automation solu- tions improve productivity, quality and energy efficiency and enable increased flexibility and shorter lead times. This benefits entities that are developing automation solutions as well as those that are using them to streamline their own production. Reshoring production to Sweden and Europe, Storskogen’s largest markets, is a growing trend. Automation is enabling higher productivity and reduced transportation costs, partly offsetting the higher production costs. Proximity to the market is also leading to shorter transport routes, reduced emissions, increased control of suppliers and better working conditions. Digitalisation and sustainability are also central drivers, closely linked to Storskogen’s investment themes. The business area also benefits from increased infrastructure investments, which create stable and resilient demand. Development over the year Net sales in the Industry business area decreased by 1 percent over the year to SEK 14,319 million (14,416). Organic sales growth was 5 percent. Adjusted EBITA decreased by 8 percent to SEK 1,426 million (1,548), resulting in an adjusted EBITA margin of 10.0 percent (10.7). Organic EBITA growth was -5 percent. Organic sales growth in the business area was largely driven by strong demand for business units active in projects, particularly in Automation. Market conditions remained challenging and were strongly affected by geopolitical uncertainty and volatile currency fluctuations over the year, which negatively affected profitability and organic profit growth. For several business units with large production plants, particularly in Industrial Technologies and Product Solutions, the weaker market conditions were more notable. This had an adverse effect on revenue and profitability, mainly due to lower capacity utilisation. The business area retained its focus on sales development, cost efficiency and continuous productivity improvements. Taken together, these are expected to contribute positively to profitability. For information on transactions during the year, see pp. 100–103. INDUSTRY By vertical: Industrial Technologies 37% Automation 33% Product Solutions 30% By geographical area: Sweden 29% United Kingdom 15% USA 13% Germany 12% Norway 5% Denmark 3% Other 23% -8 %-1 % BUSINESS AREAS Storskogen Annual and Sustainability Report 2025 20 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS BUSINESS AREA SERVICES BUSINESS AREA TRADE BUSINESS AREA INDUSTRY CASES DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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SERVICES TRADE INDUSTRY Investing in digital healthcare documentation During the year, Storskogen acquired the Swiss company LEP, a leading provider of digital healthcare documenta- tion solutions. The acquisition is aligned with Storskogen’s strategy to increase exposure to sectors that combine solid long-term growth and lower sensitivity to business cycles. Digitalisation and health are two investment themes that Storskogen has pinpointed. LEP has a market- leading position in Switzerland, Germany and Austria, offering a scalable, content-driven solution that is directly integrated into the healthcare providers’ workflows. With its stable revenue, high profitability and a potential for geographic expansion, LEP is an example of the kind of niche market leader that complements Storskogen’s portfolio and creates opportunities for continued growth. Strengthening position within health and wellbeing In 2025, Storskogen acquired the Finnish company Frameda, a fast-growing distributor and brand partner in professional haircare. The acquisition is aligned with the health and wellbeing investment theme - an area in which Storskogen has already established a leading position through companies such as ByWe, Session Map and Scandinavian Cosmetics. There is a deep understanding of the value chain, brand ownership and distribution, creating clear synergies and allowing for knowledge sharing, for example within digital B2B platforms and streamlined logistics. Through Frameda’s strong market position, profitable growth profile and established partnerships, the Trade business area gains a valuable addition that comple- ments existing operations in the Nordics and further strengthens Storskogen’s position within professional haircare, skincare and cosmetics. Automation drives sustainable transition During the year, Storskogen company Detab Ecomat, a supplier of automation solutions, secured a multi-year project exceeding SEK 100 million for a world leader in consumer products. The project constitutes a central part of the customer’s global transition from plastic to paperboard and shows how automation can contribute to increased industrial sustainability. Since the add-on acquisition of Detab Ecomat to the PV Systems business unit, a leading player in advanced automation, the company has undergone a transfor- mation – from a family-owned industrial company to an innovation partner at an international level. With new solutions that combine high performance and flexibility, Detab Ecomat has made a significant technological leap that strengthens its competitiveness and opens the door to major international assignments. The project is a clear example of Storskogen’s strategy to invest in specialised companies with evident expertise, growth potential and a link to prioritised investment themes, such as automation and sustainability. INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS BUSINESS AREA SERVICES BUSINESS AREA TRADE BUSINESS AREA INDUSTRY CASES DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf BUSINESS AREAS Storskogen Annual and Sustainability Report 2025 21
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Directors’ Report INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT DIRECTORS’ REPORT GUIDELINES FOR REMUNERATION RISKS AND RISK MANAGEMENT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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CONTENTS Directors’ Report 23 Directors’ Report 24 Guidelines for remuneration to senior executives 2 7 Risks and risk management 2 9 Corporate governance 32 Corporate Governance Report 3 3 Comment from the Chair 3 3 Board of Directors 3 8 Group management 3 9 Board of Directors’ report on internal control 4 0 Sustainability Report 42 General information 4 3 Environmental information 5 3 Social information 6 6 Corporate governance information 7 2 Appendix 7 5 Financial statements 80 Consolidated income statement 8 1 Consolidated statement of comprehensive income 8 1 Consolidated balance sheet 8 2 Consolidated statement of changes in equity 8 3 Consolidated cash flow statement 8 5 Parent Company statement of profit or loss 8 6 Parent Company statement of comprehensive income 8 6 Parent Company balance sheet 8 7 Parent Company statement of changes in equity 8 8 Parent Company cash flow statement 8 9 Notes to the financial statements Note 1 S ignificant accounting policies 9 0 Note 2 E stimates and assumptions in the financial statements 9 6 Note 3 O perating segments 9 6 Note 4 R evenue from contracts with customers 9 9 Note 5 B usiness combinations 1 00 Note 6 B usiness divestments 1 03 Note 7 A mortisation and depreciation 1 03 Note 8 E mployees, staff costs and remuneration to senior executives 1 04 Note 9 R emuneration to the auditors 1 07 Note 10 O ther operating income and expenses 1 07 Note 11 N et financial items 1 08 Note 12 T ax 1 08 Note 13 I ntangible assets 1 11 Note 14 P roperty, plant and equipment 1 14 Note 15 I nventories 1 15 Note 16 P repaid expenses and accrued income 1 15 Note 17 T rade receivables 1 15 Note 18 C ash and cash equivalents 1 15 Note 19 E quity 1 15 Note 20 I nterest-bearing liabilities 1 16 Note 21 P ensions 1 17 Note 22 P rovisions 1 21 Note 23 O ther liabilities 1 21 Note 24 A ccrued expenses and deferred income 1 21 Note 25 F inancial instruments 1 22 Note 26 F inancial risks and risk management 1 24 Note 27 L eases 1 28 Note 28 A ssets pledged and contingent liabilities 1 29 Note 29 T ransactions with related parties 1 29 Note 30 P articipations in Group companies 1 30 Note 31 S pecifications to the cash flow statement 1 32 Note 32 E arnings per share 1 33 Note 33 E vents after the reporting date 1 33 Notes – Parent Company Note 34 N et sales 1 34 Note 35 F inancial instruments 1 34 Note 36 E mployees, staff costs and remuneration to senior executives 1 34 Note 37 R emuneration to auditors 1 34 Note 38 T ax 1 35 Note 39 I nterest-bearing liabilities 1 35 Note 40 O ther liabilities 1 35 Note 41 A ccrued expenses and deferred income 1 35 Note 42 P rofit/loss from participations in G roup companies 1 35 Note 43 I nterest income and similar profit items 1 35 Note 44 I nterest expenses and similar loss items 1 35 Note 45 A ppropriations 1 36 Note 46 C ontingent liabilities 1 36 Note 47 P articipations in Group companies 1 36 Note 48 P roposed appropriation of profits 1 37 Note 49 R eceivables from Group companies 1 37 Note 50 T ransactions with related parties 1 37 Note 51 S pecifications to the cash flow statement 1 37 Note 52 D isclosures about the Parent Company 1 37 Certification by the Board of Directors 1 38 Auditor’s Report 1 39 Limited Assurance Report 1 43 Definitions of alternative performance measures 1 45 Storskogen Group AB (publ) Corporate identity number 559223-8694 Storskogen Annual and Sustainability Report 2025 23 DIRECTORS’ REPORT INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT DIRECTORS’ REPORT GUIDELINES FOR REMUNERATION RISKS AND RISK MANAGEMENT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Directors’ Report GENERAL INFORMATION ABOUT THE OPERATIONS Storskogen Group AB (publ) (“Storskogen”) was formed in November 2019 through a merger of the three previous Storskogen groups – Storskogen Industrier AB, Stor- skogen Utveckling AB and Storskogen 3 Invest AB. Storskogen is an international group of businesses across trade, industry and services that acquires and develops leading small and medium-sized companies in selected industries. The business model is built on decentralised, long-term and active ownership where business units retain their entrepreneurial spirit while benefiting from the support and scale of a larger, diversified group. Generated returns are reinvested to achieve organic and acquired growth. On 31 December 2025, the Company had 114 (115) business units with registered offices in Sweden, Denmark, Norway, Finland, Germany, Switzerland, Singapore and the United Kingdom. Storskogen’s business units are divided into three business areas, FIVE-YEAR SUMMARY 2025 2024 2023 2022 2021 Net sales, SEK m 33,097 34,182 36,006 34,250 17,496 Operating profit, SEK m 2,391 1,492 2,446 2,613 1,406 Profit before tax, SEK m 1,585 493 1,321 2,111 1,233 Profit for the year, SEK m 1,199 116 944 1,592 947 Total assets, SEK m 41,455 43,180 44,169 47,482 32,223 Operating margin, % 7.2 4.4 6.8 7.6 8.0 Return on equity, % 5.8 0.6 4.6 8.8 10.4 Equity/assets ratio, % 49.7 48.2 46.3 41.3 51.5 Average number of employees 10,173 10,815 11,654 11,263 5,760 The Board of Directors and the CEO of Storskogen Group AB (publ), corporate identity number 559223-8694, with its registered office in Stockholm, Sweden, hereby submit Storskogen’s annual accounts and consolidated accounts for the 2025 financial year. • The Group’s financial year refers to 1 January to 31 December 2025. • The Parent Company’s financial year refers to 1 January to 31 December 2025. For additional information on corporate governance and sustainability, see the Corporate Governance Report on pp. 32-41 and the Sustainability Report on pp. 42-79. Business area Vertical Services Business Services Infrastructure Services Trade Consumer Products Professional Products Industry Automation Industrial Technologies Product Solutions Services, Trade and Industry, with underlying verticals in each business area. From the first quarter of 2025, a new verti- cal structure was implemented in each business area. This change aims to refine and harmonise the classification of the business units based on their operational connections. The new verticals form the Group’s cash-generating units. The vertical structure for the 2025 financial year is pre- sented in the table below. A more detailed list of the business units included in each vertical is available at storskogen.com. DIRECTORS’ REPORT Storskogen Annual and Sustainability Report 2025 24 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT DIRECTORS’ REPORT GUIDELINES FOR REMUNERATION RISKS AND RISK MANAGEMENT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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MARKET TRENDS The market trend for Storskogen’s business areas varied in 2025. At the beginning of the year, the economic outlook was cautiously optimistic, partly due to lower interest rates. It later weakened due to uncertainty over trade policy and continued global appre- hension. Hence, operational initiatives such as price adjustments, efficiency enhance- ments and cost control were priorities across all business areas. These initiatives will also allow improved profitability once demand returns. Market conditions in the Services business area were challenging over the year. Many business units in the Infrastructure Services vertical experienced muted demand, largely due to their exposure to the construction market, which remained very weak. How- ever, the business units in Business Services, mainly in logistics and digital services, expe- rienced strong demand. The Trade business area was affected by cautious consumers and trade conflicts. At the end of the year, market conditions improved slightly for both verticals. Business units with consumer exposure, in particular, noted early signs of economic recovery. In the latter part of the year, several business units with major purchases in euros and US dollars benefited from the strengthening of the Swedish krona. In Industry, market conditions remained challenging and were strongly affected by global uncertainty and volatile currency fluctuations. Some business units that are active in projects, particularly in Automation, continued to experience strong demand. Business units with major production plants, particularly in Industrial Technologies and Product Solutions, were more significantly impacted by the weak economy. With a strengthened financial position and operational improvements imple- mented, Storskogen resumed its acquisition agenda during the year, with particular focus on increased exposure to markets outside Sweden. Three platform acquisitions were completed in Switzerland, the United Kingdom and Finland. Furthermore, six add- on acquisitions were made in Denmark, India and Sweden. A business unit in Norway was divested. OWNERSHIP STRUCTURE On 31 December 2025, Storskogen had a total of 35,321 shareholders (36,225). There were 1,686,725,219 outstanding shares in the Company, divided into two share classes, with 125,001,374 A shares and 1,561,723,845 B shares. Each A share confers a right to ten votes, and each B share confers a right to one vote. The ten largest shareholders accounted for 64.3 percent of the votes (66.3) and 40.4 percent of the capital (40.8). Storskogen’s B shares have been listed on Nasdaq Stockholm since 6 October 2021. At the AGM held on 7 May 2025, the Board was authorised to issue shares, warrants and convertibles and to repurchase own shares. SIGNIFICANT EVENTS IN THE FINANCIAL YEAR Net sales for the Group decreased by 3 per- cent to SEK 33,097 million (34,182). Organic sales growth was 2 percent (0) for the full year, offset by divestments completed in 2024 and negative currency effects. Operating profit (EBIT) rose by 60 percent to SEK 2,391 million (1,492), corresponding to an operating margin of 7.2 percent (4.4). Operating profit in the comparative period was affected by non-recurring costs, chiefly related to completed divestments. Items affecting comparability amounted to SEK -29 million (-947) over the year. Profit for the year increased to SEK 1,199 million (116). Cash flow from operating activ- ities was SEK 2,451 million (3,098). Basic/ diluted earnings per share totalled SEK 0.63 (-0.03). For developments per segment, see Note 3 on p. 96. Storskogen completed three platform acquisitions over the year (previous year: none) and six add-on acquisitions (five). The platform acquisitions were carried out to broaden and strengthen Storskogen’s posi- tion in selected industries by establishing new business units, while the add-on acqui- sitions primarily aimed to develop and com- plement existing business units. Over the year, these acquisitions had combined sales of SEK 398 million (27). The acquisitions took place in Finland, Switzerland, India, the United Kingdom, Denmark and Sweden across all three of the Group’s business areas. For further information on acquisitions made in 2025, see Note 5 on p. 100. In 2025, one divestment was made, with total annual sales of approximately SEK 275 million (2,024). The divestment was made in Norway, in the Trade business area. For further information on divestments made in 2025, see Note 6 on p. 103. The Group’s interest-bearing liabilities were SEK 11,048 million (11,855) at year-end. Over the year, the Group’s term loan facility with a 2026 maturity was refinanced and extended to September 2027, with an option to extend by an additional year. In the second quarter of the year, bonds of SEK 1,250 million with a floating interest rate of 3m Stibor + 290 basis points per annum and maturity in 2029 were issued. In the fourth quarter of the year, bonds of SEK 1,000 million with a floating interest rate of 3m Stibor + 265 basis points per annum and maturity in 2030 were issued. These transactions reduced Storsko- gen’s interest expense and extended the Company’s maturity profile. In November 2025, pursuant to authorisa- tion granted by the AGM, Storskogen decided to repurchase own shares for a maximum amount of SEK 100 million to opti- mise the capital structure. Over the year, 8 million shares were repurchased, corre- sponding to SEK 91 million. FUTURE DEVELOPMENT Storskogen aims to generate long-term profit growth in the business units and con- tinue growing by developing the existing group of companies and acquiring profita- ble companies with stable cash flows and DIRECTORS’ REPORT Storskogen Annual and Sustainability Report 2025 25 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT DIRECTORS’ REPORT GUIDELINES FOR REMUNERATION RISKS AND RISK MANAGEMENT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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strong market positions. Storskogen’s opera- tions are diversified, with business units across several geographical areas and sec- tors, and the ambition is to create profitable growth and stability across business cycles. In light of this, focus is on organic growth in combination with continued selective acquired growth. Acquisitions are made within Storskogen’s investment themes, linked to the long-term macro trends most relevant to the operations, and with the objective of further strengthening the Group’s international presence. Storskogen does not provide financial forecasts for the coming year. The assess- ment is that Storskogen is well equipped financially for 2026 and has the financial capacity to continue operating in line with its adopted strategy and targets. PROPOSED APPROPRIATION OF PROFITS The Board proposes a dividend of SEK 0.11 (0.10) per Class A share and Class B share to the 2026 AGM. The proposed dividend corre- sponds to approximately 28 percent (41) of the Parent Company’s profit and 15 percent (145) of the Group’s profit for 2025. Calcu- lated based on the number of outstanding shares as at 31 December 2025, excluding repurchased own shares, the proposed dividend amounts to SEK 185 million (169). The proposed dividend constitutes 1.0 percent (0.9) of the Parent Company’s equity and 0.9 percent (0.8) of the Group’s equity. After the proposed dividend is paid, the Parent Company’s equity/assets ratio will be 53.7 percent (52.8), and the Group’s equity/assets ratio will be 49.5 percent (48.0). Storskogen’s financial position is deemed to remain strong after the pro- posed dividend is paid. The Parent Company’s unappropriated earnings: SEK The following profits are at the disposal of the AGM: Retained earnings, including the share premium reserve 17,987,394,408 Profit for the year 660,063,102 Total 18,647,457,510 The Board proposes that the unappropriated earnings be distributed as follows: SEK 0.11 per share in dividends to the shareholders 184,564,624 To be carried forward 18,462,892,886 Total 18,647,457,510 The Board considers that the proposed divi- dend is compatible with the requirements that the nature, scope and risks of the oper- ations place on the size of the Company’s equity and with the Company’s consolida- tion requirements, liquidity and position in general. GUIDELINES FOR REMUNERATION TO SENIOR EXECUTIVES At the AGM held on 8 May 2024, the current guidelines for remuneration to senior execu- tives were adopted, which apply to the CEO and other members of the Group manage- ment. The guidelines include remuneration components, benefits and other compo- nents, terms and conditions of termination and criteria for the payment of variable cash remuneration. The remuneration guidelines shall be presented for adoption by the AGM at least every four years. The guidelines are included in their entirety on p. 27. For further information on Storskogen’s remuneration to senior executives, see Note 8 on p. 104. EVENTS AFTER YEAR-END In February 2026, Jesper Kronstrand was appointed Head of Business Area Services and a member of the Group management. He replaced Peter Ahlgren, who had previ- ously notified his intent to phase out his operational commitments. In February 2026, Chris Pullen was appointed permanent Managing Director of Storskogen UK and a member of the Group management, having previously held the role on an interim basis since May 2025. After the balance sheet date, Storskogen completed the previously announced repurchase programme related to B shares. Based on the authorisation by the 2025 AGM, 8,865,000 own Class B shares were repur- chased for a total amount of approximately SEK 100 million. The Nomination Committee proposes that Adam Parker be elected as a new Board member at the AGM on 6 May 2026. Robert Belkic has communicated that he wishes to decline re-election. On 2 March 2026, the business unit Per- fectHair.ch in Switzerland was divested. Per- fectHair.ch was part of the Trade business area and contributed net sales of SEK 288 million and adjusted EBITA of SEK –19 million to the Group in 2025. The divestment is part of Storskogen’s continuous portfolio review and the Group’s increased focus on B2B- oriented distributors within hair care. Per- fectHair.ch operates in the distribution of hair and beauty products to consumers (B2C), which falls outside the Group’s strategic focus. In February 2026, both the Group’s term loan and revolving credit facility (RCF) were extended by one year. Following the extension, the term loan matures in the third quarter of 2028 and the RCF in the first quarter of 2029. PARENT COMPANY The Parent Company’s operations include the Group management, consolidated reporting and financial management. On 1 September 2025, management activi- ties were transferred to Storskogen Manage- ment AB to streamline the organisation and division of responsibilities at the head office. The CEO, CFO and investor relations and treasury functions remain within the Parent Company. The change did not entail any material costs for the Group. Net sales for 2025 were SEK 117 million (182), profit after financial items was SEK 441 million (473), and profit for the year was SEK 660 mil- lion (412). Net sales were derived from intra- Group management services, which were reported in Storskogen Management AB as of 1 September 2025, which explains the reduc- tion compared with the previous year. The improvement in profits for the year is primar- ily due to increased dividends from subsidiar- ies. The effect was partly offset by the stronger Swedish krona, which adversely affected intra-Group receivables over the year. DIRECTORS’ REPORT Storskogen Annual and Sustainability Report 2025 26 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT DIRECTORS’ REPORT GUIDELINES FOR REMUNERATION RISKS AND RISK MANAGEMENT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Introduction The following guidelines apply to the Com- pany’s CEO and other members of Group management. In addition to the Company’s CEO, management refers to the heads of business areas, the CFO, the head of M&A, the heads of Storskogen DACH and UK and any of the Company’s Board members who have entered into an employment agree- ment or consulting agreement with the Company or another Group company. After adoption by the annual general meeting, the guidelines shall be applied to any remu- neration agreed upon and to changes to already-agreed remuneration. The guide- lines do not apply to any remuneration resolved upon by the annual general meeting. The guidelines’ promotion of the Company’s business strategy, long-term interests and sustainability Storskogen strives to be the best owner for small and medium-sized enterprises. The focus is on long-term ownership, good prof- itability, stable cash flows and supporting companies to maintain and develop a strong position in their niche. A prerequisite for successfully implement- ing the Company’s strategy is that the Company is able to recruit and retain quali- fied senior executives, which is enabled by these guidelines. Remuneration that is subject to these guidelines shall aim to promote the Com- pany’s business strategy, sustainability and long-term interests. Remuneration components and other terms and conditions Total remuneration shall be on market terms and may comprise the following compo- nents: a fixed cash salary, short-term varia- ble cash remuneration, long-term variable cash remuneration, other benefits and pension. In addition to the provisions in the guidelines, the general meeting may resolve on share-based remuneration or remuner- ation linked to the share price. The performance criteria measurement period for the payment of variable cash remuneration shall be measurable over a period of one or several years. Total variable cash remuneration must not exceed 50 per- cent of the fixed cash salary during the measurement period. Additional variable cash remuneration may be payable under extraordinary cir- cumstances, provided such special arrangements are limited in time and only agreed upon on the individual level to recruit or retain senior executives or as remuneration for extraordinary efforts in addition to the individual’s regular work duties. Total extraordinary remuneration must not exceed 10 percent of the fixed cash salary. The Group management’s pension bene- fits shall be on market terms in relation to the common practice for comparable executives in the market in which the senior executive operates and should be based on defined contribution pension plans or be in line with general pension plans (in Sweden, the ITP plan). Subject to applicable law or mandatory provisions in collective bargaining agree- ments, pension benefits may not exceed 20 percent of the fixed cash salary, and vari- able cash remuneration shall not be pen- sionable. Other benefits may include preventive healthcare and company car benefits. Pre- miums and other expenses relating to such benefits may not exceed 10 percent of the fixed cash salary. Repayment and adjustments Under certain circumstances and during a certain time, senior executives who participate in the Company’s short-term and long-term incentive programmes are obliged to repay any remuneration already paid, fully or in part, if the payment was made mistakenly or based on intentionally forged data or in the event of a material adjustment of the Company’s financial performance. Also, under extraordinary circumstances or to adjust for unforeseen non-recurring events, the board of directors may resolve to change payments according to incentive plans (before such payments are made). Termination of employment The notice period for a member of the Group management shall be no more than 12 months. During the notice period, the fixed cash salary and potential severance pay, including compensation for any competi- tion restrictions, combined may not exceed an amount corresponding to the fixed cash remuneration for two years for a member of the Group management. Criteria for variable cash remuneration Variable cash remuneration is intended to award meeting predetermined and meas- urable criteria that promote the Company’s business strategy and long-term interests, including the Sustainability Policy. Such cri- teria may be linked to the Company’s profit or loss, sales, cash flows and/or sustainabil- ity targets. When the performance criteria measure- ment period for the payment of variable cash remuneration has ended, an evalua- tion of the outcome shall be made. The Remuneration Committee is responsible for evaluating the CEO’s outcome while the CEO is responsible for evaluating the other senior executives’ outcomes. Guidelines for remuneration to senior executives DIRECTORS’ REPORT Storskogen Annual and Sustainability Report 2025 27 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT DIRECTORS’ REPORT GUIDELINES FOR REMUNERATION RISKS AND RISK MANAGEMENT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Salary and terms of employment When the board of directors’ proposal for these remuneration guidelines was consid- ered, salaries and terms of employment for the Company’s employees were considered by way of assessing information on the total remuneration to employees, the compo- nents of such remuneration and the remu- neration’s growth and growth rate over time. This information was included in the basis for the board of directors’ decisions when evaluating the reasonableness of the guidelines and the limitations set by them. Decision-making process for guidelines The board of directors’ Remuneration Com- mittee prepares the board of directors’ decisions on proposals for guidelines for remuneration to senior executives. The board of directors shall prepare a proposal for new guidelines at least every four years and submit a proposal for adoption by the annual general meeting. The guidelines shall apply until new guidelines have been adopted by the annual general meeting. The Remuneration Committee shall also monitor and evaluate programmes for vari- able remuneration to the Group manage- ment and the application of the guidelines in terms of remuneration levels and struc- tures. Members of the Group management must not be present during the board of directors’ deliberations and decisions on remuneration-related matters if they are affected by the issues. Deviations from the guidelines The board of directors may temporarily resolve to deviate from the guidelines, in whole or in part, if there are special reasons for such in an individual case and it is nec- essary to serve the Company’s long-term interests, including its sustainability, or to ensure the Company’s financial viability. As stated above, the Remuneration Committee prepares the board of directors’ resolutions on remuneration-related matters, which includes any resolution to deviate from the guidelines. DIRECTORS’ REPORT Storskogen Annual and Sustainability Report 2025 28 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT DIRECTORS’ REPORT GUIDELINES FOR REMUNERATION RISKS AND RISK MANAGEMENT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Storskogen’s operations and business units are exposed to risks that may affect the Group. Storskogen has a decentralised organisation, which means that the busi- ness units are largely responsible for run- ning their operations independently. This decentralised organisation places high demands on financial reporting, corporate governance and internal control. Group management governs, controls and moni- tors the activities of the business units through its representatives on each busi- ness unit’s board. The business units per- form risk assessments annually. Storskogen also performs its own quarterly risk assess- ments of the business units. Storskogen’s Group management con- ducts an annual risk workshop with input from other Company representatives and follows up regularly on the resulting risks and action plans. According to the risk assessment method used at the Group and business unit levels, the likelihood of a spe- cific risk occurring is balanced against the impact such an occurrence would have. Group management reports to the Board on the outcome of the risk workshop and the implementation of any action plans pro- duced in connection with the workshop. Storskogen’s risks can be divided into four areas: strategic, operational, financial and regulatory compliance risks. The table below presents a selection of Storskogen’s most highly prioritised risks and the measures taken by the Company to limit their impact. For further information on Storskogen’s financial risks and risk management, see Note 26 on p. 124. For further information on climate-related risks, see p. 54. Risks and risk management Strategic risks Strategic risks are those that could prevent Storskogen from achieving its vision and targets and are often associated with operating in specific industries. These include changes in the business cycle, structural changes, competition, acquisitions and growth strategy. RisksRisks Risk managementRisk management Market dynamics The risk of macroeconomic trends, such as a recession or inflation, which could cause profits to drop in the business units. Storskogen monitors the economic situation constantly, follows up on the portfolio companies’ performance and key performance indicators monthly and has established procedures for continuous forecasting. This way, Storskogen can adapt costs, pricing and growth to the economic situation and expected trends. In the event of macroeconomic events beyond Storskogen’s control, each business unit has adopted an alternative action plan to handle the situation. Value-creating acquisitions The risk that Storskogen cannot meet its financial targets or that acquisitions made will not provide the expected returns. Using a Case Assessment Tool, Storskogen has implemented clear guidelines and requirements on acquisitions and acquisition processes. This tool is used to evaluate potential acqui- sitions based on criteria such as a sustainable, proven business model, earnings capacity, market position, leadership, valuation and the extent to which the acquisition will strengthen and diversify the rest of Storskogen’s portfolio. The management team continuously evaluates the financial and organisational capacity for acquisitions. Digital transformation The risk that Storskogen’s business units become less competitive if they fall behind in digital transformations, such as automation and the use of AI. Digitalisation is one of Storskogen’s prioritised themes for future acquisitions. In 2025, Storskogen carried out several measures to increase its expertise and use of AI and automation. The purpose was to enhance expertise to support the introduction of AI into procedures, as well as to support business units. Training for business units was held on the implementation of AI and the introduction of suitable third-party products. Several business units have begun using these tools across purchasing and imports, credit monitoring, coding, marketing, legal expertise, reporting and follow-up and customer services. Climate targets The risk that Storskogen will not meet the adopted climate targets due to insufficient access to renewable energy. In Sweden, Storskogen has a framework agreement for renewable and fossil-free energy, and the Company is investigating similar solutions in all geographical areas. There is a signifi- cant renewable energy shortage in some of Storskogen’s geographical areas, and potential solutions are discussed on the business unit’s boards as needed. DIRECTORS’ REPORT Storskogen Annual and Sustainability Report 2025 29 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT DIRECTORS’ REPORT GUIDELINES FOR REMUNERATION RISKS AND RISK MANAGEMENT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Financial risks Financial risks include risks related to the reliability of the Company’s internal and external financial reporting and financial risks such as interest rate risk, liquidity risk, credit risk and currency risk. RisksRisks Risk managementRisk management Financing The risk that the availability of capital in the market could decrease or that the cost of capital could increase. Storskogen’s financing and financial risks are managed in accordance with the Company’s Finance Policy. Forecasting of future capital requirements ensures adequate access to capital without involving unnecessary costs. Refinancing risk is managed continuously by diversifying the debt portfolio with respect to maturities and types of debt. Leverage was reduced over the year due to strong cash flows. Storskogen strives to build long-term confidence in the equity and credit markets through ongoing dialogues with capital market participants, good availability, transparent accounts and clear financial and sustainability targets. Cost control The risk that Storskogen could fail to maintain cost control in an environment with uncertain inflation. Storskogen’s business areas monitor costs monthly and take special measures as needed, such as compensating for costs by increasing prices or making other cost savings, for example, by using special framework agreements for joint purchases. Impairment The risk that goodwill and other assets could become impaired. Each quarter, Storskogen performs simplified impairment testing with updated forecasts to identify potential impairment losses. A full impairment test is conducted annually. The allocation to intangible assets other than goodwill, such as customer relations, has increased gradually, thereby reducing intangible assets over time due to amortisation. Operational risks Operational risks include risks associated with effectiveness, internal processes and activities, the use of resources and systems and the Group’s employees. RisksRisks Risk managementRisk management Data and information security The risk that Storskogen could fail to prevent or detect intrusions into its IT systems. All Storskogen business units implement and regularly follow up on their IT, information security and continuity policies, and the mandatory risk assessment of the IT environment. Risks are managed through cybersecurity training, the introduction of conditional access, and contingency plans for recovering information systems. Geopolitical uncertainty The risk that geopolitical conflicts and trade barriers nega- tively impact the Group’s supply chains, costs, or business opportunities. Geographical locations for production and alternative suppliers are evaluated for business units that may be affected. To ensure the ability to adapt routes and keep costs low, Stor- skogen has entered into a framework agreement for freight. Active inventory and pricing strategies ensure that products can be manufactured and distributed despite brief supply chain disruptions, minimising their impact on profitability. Personnel The risk of not being able to attract and retain talent and leaders. Employee surveys assess employee wellbeing and engagement and allow each manager to take specific measures to maintain Storskogen’s culture and offer development opportunities. When recruiting, Storskogen strongly focuses on maintaining consensus on values and increasing diversity among key people across the business units and the central organisation. DIRECTORS’ REPORT Storskogen Annual and Sustainability Report 2025 30 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT DIRECTORS’ REPORT GUIDELINES FOR REMUNERATION RISKS AND RISK MANAGEMENT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Regulatory compliance Regulatory compliance risks relate to the risk of financial or legal sanctions arising from Storskogen’s or its business units’ involvement in disputes or failure to act in accordance with laws, rules and regulations. RisksRisks Risk managementRisk management Regulatory compliance The risk that Storskogen or a business unit could fail to com- ply with rules and regulations such as the Market Abuse Regulation, the General Data Protection Regulation (GDPR), provisions on sanctions or work environment requirements, which could lead to costs and reputational damage. Storskogen has implemented several policy documents and internal processes to ensure that all requirements imposed on the Group are met, and it offers regular training pro- grammes for business units on trade sanctions, embargoes, export controls and the GDPR. Business ethics and sustainability governance The risk that employees will not comply with laws, rules and regulations or Storskogen’s Code of Conduct, which may include corruption, fraud and bribery. All business units in the Group are adopting the Code of Conduct and policies on anti-corruption, anti-money laundering and sanctions. All business units participate in training on relevant policies and governance documents to increase awareness and practical application. Storskogen also provides a whistleblowing function for business units with up to 250 employees, allowing anonymous reporting of irregularities. Business units with more than 250 employees must establish their own whistleblowing functions. Disputes The risk of significant disputes with customers, suppliers or other business partners may lead to costs and reputational damage. Disputes are followed up quarterly, and any significant disputes are reported to the Audit Committee. Disputes are carefully evaluated to ensure that Storskogen, where appropriate, takes responsibility. All business units in the Group undertake to comply with Storskogen’s Code of Conduct. If deviations from the Code of Conduct are identified, Storskogen takes all reasonable measures to ensure that the deviation ceases. DIRECTORS’ REPORT Storskogen Annual and Sustainability Report 2025 31 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT DIRECTORS’ REPORT GUIDELINES FOR REMUNERATION RISKS AND RISK MANAGEMENT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Corporate governance Skaraslättens Transport, Sweden INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE CORPORATE GOVERNANCE REPORT BOARD OF DIRECTORS GROUP MANAGEMENT BOARD OF DIRECTORS’ REPORT ON INTERNAL CONTROL SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Corporate Governance Report In 2025, the Board of Storskogen continued to focus on implementing the strategy presented at the Capital Markets Day at the end of 2024. Our strategic direction includes organic and acquired profit growth and strong profitability, supported by clear financial targets and prioritised investment themes. The past year continued to be character- ised by significant geopolitical challenges. Nevertheless, we succeeded in generating strong cash flows and achieving organic sales growth. Furthermore, our strengthened balance sheet allowed us to resume our acquisition agenda. The Audit Committee’s work over the year included following up on implemented refi- nancings, which contributed to extending Storskogen’s maturity profile. By extending the revolving credit facility, refinancing and extending the term loan facility and repur- chasing and issuing two new bonds, we also considerably reduced our interest expense. The Committee also followed up on the efforts to streamline and quality-assure the procedures of the finance organisation, where support from automation and improved systems has been central. The scope of the Audit Committee’s reg- ular work also included ensuring adequate procedures for internal control among Storskogen’s business units and following up on the Group-wide risk assessment and the measures taken to manage and mitigate the impact from these risks. Over the year, the Sustainability Committee focused on strengthening Storskogen’s sustainability governance and reporting. This Annual Report is the first in which Storskogen has reported pursuant to the requirements of the EU’s Corporate Sustainability Reporting Directive (CSRD). The implementation of the regulations further integrated sustainability issues into Storskogen’s overarching strategy and governance and laid the foundation for even more systematic, transparent and robust sustainability initiatives. Reporting under CSRD also provides investors, customers and other stakeholders with a more comparable and reviewed view of the Group’s sustainability impact. Despite the challenging and uncertain global situation, Storskogen’s business units and employees have shown great commitment and determination in their efforts to create long-term value. When I look ahead, I am confident that Storskogen has the strong drive and capacity required to continue executing the adopted strategy. Annette Brodin Rampe Chair of the Board Strategic focus and dedicated sustainability initiatives Comment from the Chair CORPORATE GOVERNANCE Storskogen Annual and Sustainability Report 2025 33 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE CORPORATE GOVERNANCE REPORT BOARD OF DIRECTORS GROUP MANAGEMENT BOARD OF DIRECTORS’ REPORT ON INTERNAL CONTROL SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Governance model GROUP MANAGEMENT INVESTMENT COMMITTEE BOARD OF DIRECTORS CEO AUDITOR AUDIT COMMITTEE SUSTAINABILITY COMMITTEE REMUNERATION COMMITTEE ANNUAL GENERAL MEETING NOMINATION COMMITTEE SHAREHOLDERS INSIDER COMMITTEE STORSKOGEN’S CORPORATE GOVERNANCE Storskogen Group AB is a Swedish limited liability company that has been listed on Nasdaq Stockholm, Large Cap, since 6 Octo- ber 2021. As at 31 December 2025, the Group had 10,501 employees and operational presence in about 30 countries. At year-end, the central organisation had 79 employees in the business area organisation and specialist functions such as finance, sustainability, M&A, business development, communication and legal. The Board’s responsibility for corporate governance and internal control is gov- erned by Swedish legislation, supplemented by external and internal frameworks. Primary external frameworks for Storskogen’s corporate governance in 2025 were the Swedish Companies Act, the Swedish Annual Accounts Act, the EU’s Corporate Sustainability Reporting Directive (CSRD), the Nasdaq Nordic Main Market Rulebook for Issuers of Shares, the UN Global Compact, the Market Abuse Regulation (“MAR”), IFRS and the EU Audit Regulation. The internal frameworks affecting Storskogen’s corporate governance include the Articles of Association, the Rules of Procedure of the Board, the instructions to the CEO and the Group’s Code of Conduct. Storskogen also complies with the Swedish Corporate Governance Code (the “Code”). The Code is available on www.bolagsstyrning.se. The website also includes a description of the Swedish corporate governance model. There were no deviations from the Code in 2025. Storskogen was not in breach of the Nasdaq Nordic Main Market Rulebook or good practice in the stock market. SHAREHOLDERS AND THE ANNUAL GENERAL MEETING Pursuant to Euroclear’s shareholder register, Storskogen had a total of 35,321 sharehold- ers at year-end. The Company has A shares and B shares. Each A share confers a right to ten votes, and each B share confers a right to one vote. As at 31 December 2025, the ten largest owners accounted for 64.3 percent of the votes and 40.4 percent of the share capital. Storskogen’s A shareholders, Ronnie Bergström, Alexander Bjärgård and Peter Ahlgren, each have a direct or indirect hold- ing corresponding to over 10 percent of the votes in Storskogen. No other shareholders hold more than 10 percent of the Company’s share capital or votes. Information on the shareholder structure can be found on p. 149 in the Annual Report. The shareholders’ influence is exercised at the Annual General Meeting (AGM) and, if applicable, at Extraordinary General Meetings, which constitute Storskogen’s highest decision-making body. The AGM is held within six months of the end of the financial year. Each shareholder has the right to attend a general meeting and exercise their right to vote. A shareholder who cannot attend in person may exercise their right by proxy. Regardless of the size of their shareholding, all shareholders have the right to have a matter addressed at the meeting if the request is submitted to the Board sufficiently in advance of the general meeting for the matter to be included in the notice of the meeting. The general meeting adopts changes to the Articles of Association, appoints and dismisses Board members, the Chair of the Board and the external auditor and resolves on their fees. The AGM further adopts the income statement and balance sheet and resolves on the appropriation of profits and whether to discharge the Board members and CEO from liability. The AGM also adopts instructions for the appointment and work of the Nomination Committee and guidelines for remuneration and other terms of employ- ment for the CEO and other senior executives. Annual General Meeting 2025 Storskogen’s AGM was held on 7 May 2025. The Board passed a resolution in accord- ance with the provisions in Chapter 7, Section 4 a of the Swedish Companies Act and the Company’s Articles of Association, allowing shareholders to exercise their voting rights by post. Consequently, shareholders could exercise their rights physically, by proxy or by post. At the AGM in Storskogen on 7 May 2025, a dividend of SEK 0.10 per share was resolved on. Annette Brodin Rampe was re-elected as Board member and Chair of the Board, and Alexander Bjärgård, Louise Hedberg, Johan Thorell and Robert Belkic were re-elected as Board members. The AGM also resolved to re-elect Ernst & Young Aktiebolag as auditor, to adopt two incentive programmes and to authorise the Board to issue B shares and repurchase and transfer own B shares. The AGM resolved to pay fees of SEK 975,000 to the Chair of the Board and SEK 440,000 to the other Board members for the period until the next AGM. Board members who receive remuneration from the Com- pany due to employment were not entitled to a fee for serving on the Board. The Chair of the Audit Committee received a fee of SEK 230,000, and the other members of the Audit Committee received SEK 115,000 in fees. The Chair of the Remuneration Committee received a fee of SEK 82,500, and the other members of the Remuneration Committee received fees of SEK 55,000 each. The Chair of the Sustainability Committee received a fee of SEK 82,500, and the other members of the Sustainability Committee received SEK 55,000 each in fees. Annual General Meeting 2026 The Annual General Meeting 2026 will be held on Wednesday 6 May 2026 at 10:00 am at Tändstickspalatset, Västra Trädgårdsgatan 15, Stockholm, Sweden. Further information is available in the notice convening the meeting. CORPORATE GOVERNANCE Storskogen Annual and Sustainability Report 2025 34 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE CORPORATE GOVERNANCE REPORT BOARD OF DIRECTORS GROUP MANAGEMENT BOARD OF DIRECTORS’ REPORT ON INTERNAL CONTROL SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOMINATION COMMITTEE The Nomination Committee represents the Company’s shareholders and is appointed in accordance with the principles for appointment of the Nomination Committee that were adopted at an Extraordinary General Meeting on 24 September 2021 and apply until further notice. The Nomination Committee is tasked with submitting proposals for resolutions prior to the AGM regarding the chair of the general meeting, the number of Board members and the election of the Chair of the Board and Board members, fees to the Board and any fees to the committees of the Board, election of auditors and audit fees and criteria for appointing members of the Nomination Committee, in accordance with the Code. The Nomination Committee uses Rule 4.1 of the Code as its diversity policy. Consequently, the Committee’s objective is that the composition of the Board shall be appropriate for the Company’s operations, phase of development and other relevant circumstances. It shall exhibit diversity and breadth of qualifications, experience and background. The Nomination Committee shall strive for a good gender balance on the Board, and the majority of the Board members shall be independent of the Com- pany, its executive management and major shareholders. The current composition of the Board is the result of the Nomination Committee’s work before the 2025 AGM. Shareholders may submit proposals to the Nomination Committee in accord- ance with the instructions published on Storskogen’s website. No fees were paid to members of the Nomination Committee. The Nomination Committee for the 2026 AGM was appointed based on the ownership structure on 31 August 2025 and in accordance with the instructions to the Board of Directors’ annual wheel Every ordinary Board meeting includes reports from the Group management on finance, the business areas’ performance and other strategic issues. Reports from the Company’s Audit Committee, Remuneration Committee, Sustainability Committee and Investment Committee are also submitted. Q1 Q2 Q3 Q4 Interim report for the first quarter, Annual Report, AGM and statutory Board meeting, meeting between the auditors and the Board without the management’s presence, Rules of Procedure of the Board and instructions to the CEO and the Committees of the Board. Interim report for the second quarter. Interim report for the third quarter, budget resolution, financial calendar for the following year, double materiality assessment, policies, sustainability- related targets and risks, policies, evaluation of the Board and the CEO. Year-end report, resolution on proposed dividends, matters for the AGM, risk workshop. Nomination Committee that were adopted at the Extraordinary General Meeting. It consists of: • L iv Gorosch (Chair), appointed by the Class A shareholders • R onnie Bergström, appointed by the Class A shareholders • D ick Bergqvist, appointed by AMF • O scar Bergman, appointed by Swedbank Robur Fonder. The Nomination Committee held four min- uted meetings prior to the 2026 AGM. The Nomination Committee also maintained ongoing contact for further discussions. The Nomination Committee reviewed the results of the Board’s evaluation of the Board members and their work. The Nomination Committee considered all issues that were to be considered according to the Code. The Nomination Committee’s proposals and explanatory statement will be made available on Storskogen’s website no later than in connection with the publication of the notice of the AGM. AUDITOR The external auditor is an independent body that audits the Company’s accounts and the management by the Board and the CEO to ensure that the Company provides a true and fair view of the Company. The auditor shall report its observations to the Board, without the management present, at least once a year and attend Audit Committee meetings. After the end of each financial year, the auditor shall submit an auditor’s report for the Company and an auditor’s report for the Group to the AGM. In 2025, Storskogen Group’s auditor was Ernst & Young AB, with Åsa Lundvall as the auditor in charge. The Audit Committee evaluates the auditors’ work and independence annually. In 2024, Storskogen invited several audit companies to submit tenders for the election of auditors at the 2025 AGM. Fees to auditors are paid once the invoice has been approved. Read more about fees in Note 9. BOARD OF DIRECTORS The Board shall manage the Company’s affairs in the interests of the Company and all shareholders and safeguard and promote a good corporate culture. The Board is tasked with determining the Company’s overarching goals and strategy, evaluating and appointing the CEO, and ensuring that the Company has proper control activities for financial reporting, internal control and governance. According to the Articles of Association, the Board shall consist of no fewer than three and no more than ten Board members without deputy Board members. The Board members are appointed by the shareholders at the AGM for the period until the end of the next AGM. The Board, which was appointed at the 2025 AGM, consists of five Board members, four of whom are considered independent of the Company, its major shareholders and its management. Alexander Bjärgård is not considered independent of the Company, its management or its major shareholders; he should be regarded as an executive Board member. The Board meets the Code’s requirements on a majority of independent members. Information on the members of the Board is provided on p. 38. Responsibilities of the Board of Directors The Board is tasked with determining the Company’s overarching goals and strategy. It is also responsible for decisions on certain major corporate acquisitions, follow-up and operational control, financial development, risk assessments and ensuring regulatory CORPORATE GOVERNANCE Storskogen Annual and Sustainability Report 2025 35 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE CORPORATE GOVERNANCE REPORT BOARD OF DIRECTORS GROUP MANAGEMENT BOARD OF DIRECTORS’ REPORT ON INTERNAL CONTROL SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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compliance. At the annual statutory Board meeting, the Board adopts Rules of Proce- dure that govern the responsibilities of the Board members and the Chair of the Board. The Board is also responsible for issuing instructions to the Audit Committee, the Remuneration Committee and the Sustain- ability Committee and delegating author- isations to the Investment Committee. The Board also adopts instructions to the CEO, including the division of work between the Board and the CEO, and an instruction to the CEO on financial reporting. The Chair of the Board leads and organises the work of the Board so that it meets its obligations to the shareholders in a manner that is fit for purpose and ensures that the Board receives satisfactory information and supporting documents for its work. The Chair of the Board engages in an ongoing dialogue with the CEO. The Chair of the Board and the CEO jointly produce the agenda and documentation for each Board meeting. Board meetings are attended by the CEO, the CFO and the Group’s General Counsel as the Secretary of the Board (with certain exceptions). Occasionally, other employees may be invited to attend Board meetings to report on their areas. The Board’s duties include: • e valuating, developing and determining the Company’s overarching purpose and strategic direction; • m aking annual evaluations and updating and adopting relevant financial, opera- tional and sustainability-related targets as and when needed; • a ppointing, making annual evaluations of and, if necessary, dismissing the CEO; • i dentifying how sustainability issues affect the Company’s risks and business opportunities and the Company’s impact on people, society and the environment and preparing relevant strategies; • e stablishing the guidelines required for the Company’s actions and role in society to ensure its ability to create value in the long term; • e nsuring that there are appropriate systems for monitoring and controlling the business and the risks associated with the business, including risks related to the Company’s impact on society and its surroundings, people and the environment; • e nsuring that there is satisfactory control of the Company’s statutory and regulatory compliance and its compliance with internal guidelines and policy documents; • e nsuring that the principles adopted for financial reporting and internal control are applied and that the Company’s financial reports, including sustainability reports, are prepared and published pursuant to laws, applicable accounting principles and other requirements for listed companies; and • e nsuring that the Company’s disclosures are characterised by transparency and are accurate, relevant, reliable and complete. The Board shall annually, through a system- atic and structured process, evaluate the work by the Board and the CEO to develop the working methods and effectiveness of the Board. The Chair of the Board shall present the results to the Nomination Com- mittee to support their work on preparing proposals to the AGM regarding the compo- sition and members of the Board. In 2025, an evaluation was carried out of the Board and CEO using a questionnaire survey. The result of the evaluation was reported in writing to the Board members and discussed at a Board meeting. The result was presented to the Nomination Committee by the Chair of the Board. Board meetings and main subject areas The Board held 26 meetings over the year, seven of which were regular Board meetings, including the statutory Board meeting. In addition, 19 extra meetings were held to deal with issues such as decisions on new issues of bonds, financing, share repurchases and incentive programmes. The majority of the Board’s extra meetings were per capsulam. At Board meetings held to consider interim reports, a report on financial trends, business area and market area developments and completed and planned acquisitions or divestments is always presented by the CEO, the CFO and the Chair of the Investment Committee. The Company’s Audit Committee, Remuneration Committee and Sustainability Committee also present their reports. These reports include any issues addressed at the last committee meetings, any decisions that should be referred to the Board and the Committee’s recommended decisions. Over the year, the Board also discussed geopo- litical challenges and macro effects such as US tariffs, developments in the Swedish markets and AI. Committees of the Board of Directors The Board has established an Audit Committee, a Remuneration Committee and a Sustainability Committee. The work of the committees is governed by instructions adopted by the Board and is reported to the Board at each ordinary Board meeting. The Audit Committee has a supervisory role regarding risk management, internal control and quality assurance of the Company’s financial reporting. In dialogue with the Company’s auditor, the Committee ensures that the Company’s internal and external accounts meet current requirements. The Committee determines the scope and focus of the audit work in collaboration with the auditor. The Audit Committee shall also evaluate the effec- tiveness of the internal control processes and the Group’s risk management and financial structure. The Audit Committee is responsible for evaluating implemented audit efforts and the audit plan and also assists the Nomination Committee with pro- posals for and remuneration to auditors. The members of the Committee are appointed at the statutory Board meeting for one year. The Committee comprised Johan Thorell, Chair, Annette Brodin Rampe and Robert Belkic. Over the year, the Committee held five meetings, one of which was held jointly with the Sustainability Committee. The Company’s external auditor attended the Audit Committee meetings. The Remuneration Committee shall prepare proposals for resolutions on the CEO’s terms of employment, guidelines for remuneration to senior executives, a remu- neration report and incentive programmes, which shall be submitted to the AGM for adoption. The members of the Committee are appointed at the statutory Board meeting for one year, and the Committee’s work is governed by the instructions to the Remuneration Committee, which are adopted by the Board. The committee consisted of Annette Brodin Rampe, Chair, and Louise Hedberg. Five meetings were held during the year. The Sustainability Committee shall review and monitor the relevance and outcomes of the sustainability targets and strategy, the Company’s management of sustainability risks and ensure compliance with statutory requirements, the Sustainability Policy and the Company’s Code of Conduct. The Sustainability Committee shall also monitor CORPORATE GOVERNANCE Storskogen Annual and Sustainability Report 2025 36 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE CORPORATE GOVERNANCE REPORT BOARD OF DIRECTORS GROUP MANAGEMENT BOARD OF DIRECTORS’ REPORT ON INTERNAL CONTROL SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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sustainability reporting and, as needed, cooperate with the Audit Committee regarding financial reporting. The members of the Committee are appointed at the statutory Board meeting for one year, and the Committee’s work is governed by the instructions to the Sustainability Committee, which are adopted by the Board. The Sus- tainability Committee consisted of Louise Hedberg, Chair, and Annette Brodin Rampe. Four meetings were held during the year, one of which was held jointly with the Audit Committee. CEO AND GROUP MANAGEMENT The Board appoints the CEO and adopts instructions for the CEO’s work. The CEO is responsible for the Company’s daily operations and producing information and supporting documentation for the Board and, in dialogue with the Chair of the Board, the agendas for Board meetings. The CEO ensures the implementation of the strategic direction adopted by the Board and com- pliance with the Company’s commitments to society, the environment, people and the financial market in accordance with the Company’s Code of Conduct and other policies. The CEO is responsible for imple- menting the policies adopted by the Board and reports any deviations to the Board. The CEO is supported in his work by other members of the Group management. The Group management meets regularly and deals with issues such as corporate governance, reporting, organisation, strat- egy and the development of the organisa- tion. The Group management shall prepare matters that must be decided by the Board according to the Rules of Procedure of the Board and assist the CEO in implementing the resolutions of the Board. In addition to their specific area of responsibility, the members of Group management have a collective responsibility for the manage- ment of the Company. Storskogen’s Group management consists of the CEO, the CFO, the Head of M&A, the heads of the business areas Trade, Industry and Services, and the heads of Storskogen DACH and Storskogen UK, all of whom are presented in more detail on p. 39. Remuneration to Group management According to the Guidelines for Remunera- tion to Senior Executives adopted at the AGM on 8 May 2024, remuneration to the CEO and the Group management shall consist of fixed and short-term variable cash remuneration and long-term variable cash remuneration, other benefits and pension. Pursuant to a resolution passed at the 2024 AGM, the Board shall prepare proposals to the AGM on new guidelines at least every four years. The Board has prepared a Remuneration Report that will be presented to the 2026 AGM. It describes the remuneration to the CEO in more detail, gives an account of outstanding share-based incentive programmes and states whether the Company’s Guidelines for Remuneration to Senior Executives have been complied with and implemented. The Remuneration Report will be available on Storskogen’s website no later than three weeks before the AGM on 6 May 2026. Note 8 Employees, staff costs and remuneration to senior executives and the Remuneration Report include a description of the outstanding programmes for long- term variable remuneration. Investment Committee In 2025, Storskogen’s Investment Committee consisted of Group management, with Alexander Bjärgård serving as the Chair. The Board has delegated to the Committee the power to independently evaluate and decide on the acquisition of new business units or add-on acquisitions. The Investment Committee’s assignments include reviewing the Company’s entire portfolio and eval- uating any divestments from the portfolio. For companies with a valuation of SEK 500 million or more, the Investment Committee seeks approval from the Board. The Com- mittee meets in connection with acquisition decisions and reports continuously to the Board on completed acquisitions. Insider Committee To identify, evaluate and decide whether the publishing of insider information should be postponed, Storskogen has established an Insider Committee in accordance with the Insider Policy adopted by the Board. The Insider Committee consists of the CEO, the CFO, the General Counsel and the Head of IR. Audit Committee Remuneration Committee Sustainability Committee Focus areas in 2025 Review of interim reports, the Annual Report and the associated reporting from the auditors. Review of risk and internal control activities for financial reporting and observations made by the auditors. Review of disputes and insurance and relevant policies. Tender process for proposals to the Nomination Committee regarding the election of auditors for the AGM. Follow-up on refinancing and automation of the finance organisation’s proce- dures. Evaluation of the Audit Committee and consideration of whether to merge the Audit and Sustainability Committees. Evaluation of the remuneration to senior executives and employees and the Company’s compliance with the adopted remuneration guidelines. Evaluation of outstanding incentive programmes and stakeholder dialogues. Review of relevant policies and programmes and preparation of proposals for new incentive programmes. Preparation of the Remuneration Report and remuneration guidelines. Evaluation of sustainability targets and strategies, review of the double materiality assessment and stakeholder dialogues. Review of reported sustainability data and relevant policies. Work on strengthening Storskogen’s sustainability governance and reporting. Evaluation of the Sustainability Committee and consideration of whether to merge the Sustainability and Audit Committees. Attendance at meetings Johan Thorell: 5/5 Annette Brodin Rampe: 5/5 Louise Hedberg: 4/4 Annette Brodin Rampe: 5/5 Louise Hedberg: 5/5 Annette Brodin Rampe: 4/4 Robert Belkic: 5/5 CORPORATE GOVERNANCE Storskogen Annual and Sustainability Report 2025 37 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE CORPORATE GOVERNANCE REPORT BOARD OF DIRECTORS GROUP MANAGEMENT BOARD OF DIRECTORS’ REPORT ON INTERNAL CONTROL SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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ANNETTE BRODIN RAMPE Chair of the Board Chair of the Remuneration Committee Member of the Audit Committee Member of the Sustainability Committee Elected to the Board of Directors: 2022 Attendance at Board meetings in 2025: 26/26 Year of birth: 1962 Education: MSc in Chemical Engineering, Chalmers University of Technology Employment history: CEO of Internationella Engelska Skolan and ImagineCare AB, Board member of Peab AB, Ernströmgruppen AB and Stillfront Group AB, Managing Partner and Senior Advisor of Brunswick Group Assignments in the Company and other significant assignments: Chair of the Board of Storskogen Group AB and ImagineCare AB, Board member of Pion Group AB (formerly Poolia) and Ferronordic AB Shareholding, own or held by related parties, as at 31 December 2025: 1,400,000 B shares Independent in relation to the Company, its management and its largest shareholders: Yes JOHAN THORELL Board Member Chair of the Audit Committee Elected to the Board of Directors: 2019 Attendance at Board meetings in 2025: 26/26 Year of birth: 1970 Education: MSc in Business and Economics, Stockholm School of Economics Employment history: CEO of Gryningskust Holding, active in property management since 1996 Assignments in the Company and other significant assignments: Board member of Storskogen Group AB, CEO and Board member of Gryningskust Holding AB with subsidiaries, Chair of the Board of Kallebäck Property Invest AB, Board member of Atrium Ljungberg AB, AB Sagax, K2A Knaust & Andersson Fastigheter AB, Hemsö Fastighets AB and Videnca AB Shareholding, own or held by related parties, as at 31 December 2025: 14,679,331 B shares Independent in relation to the Company, its management and its largest shareholders: Yes ROBERT BELKIC Board Member Member of the Audit Committee Elected to the Board of Directors: 2023 Attendance at Board meetings in 2025: 26/26 Year of birth: 1970 Education: BSc Business Administration and Economics, Stockholm University Employment history: Interim CFO of Polarium Energy Solutions AB, CFO, EVP and Group Treasurer of Hexagon AB, Group Treasurer of EF Education First Ltd, Assistant Group Treasurer of Autoliv Inc, Chief Dealer at Esselte AB Assignments in the Company and other significant assignments: Board member of Storskogen Group AB, Interim CFO of Nobia AB Shareholding, own or held by related parties, as at 31 December 2025: 75,000 B shares Independent in relation to the Company, its management and its largest shareholders: Yes ALEXANDER BJÄRGÅRD Board Member Elected to the Board of Directors: 2019 Attendance at Board meetings in 2025: 26/26 Year of birth: 1974 Education: LL.M., Uppsala University, and studies in business and other subjects at Boise State University, IFALPES and IFL Employment history: Partner and serial entrepreneur at Firm Factory Network, Head of Legal and Purchasing Manager at Tradimus, Legal Associate at Mannheimer Swartling Advokatbyrå Assignments in the Company and other significant assignments: Board member of Storskogen Group AB, Board member of Firm Factory Network AB, Deputy board member of Kullengubben Advokat AB Shareholding, own or held by related parties, as at 31 December 2025: 37,539,070 A shares and 22,856,471 B shares of which 22,250 are savings shares in the share savings programme, and 166,153 warrants Independent in relation to the Company, its management and its largest shareholders: No LOUISE HEDBERG Board Member Chair of the Sustainability Committee Member of the Remuneration Committee Elected to the Board of Directors: 2019 Attendance at Board meetings in 2025: 26/26 Year of birth: 1974 Education: MSc in Business and Economics, Stockholm School of Economics, and sustainability studies, Stockholm University and Stockholm Resilience Centre Employment history: Head of Sustainability at East Capital, Head of IR at East Capital Explorer, Head of IR at Dometic Group, Consultant at JKL Group Assignments in the Company and other significant assignments: Board member of Storskogen Group AB, CEO and Chair of the Board of Penny to Pound Aktiebolag, Board member of East Capital SICAV (Lux), East Capital (Lux) General Partner S.à r.l., Espiria SICAV (Lux), SEB Funds AB and P Capital Partners, Deputy board member of Hayman AB Shareholding, own or held by related parties, as at 31 December 2025: 94,000 B shares Independent in relation to the Company, its management and its largest shareholders: Yes AUDITOR Ernst & Young AB Åsa Lundvall, auditor in charge Authorised Public Accountant Year of birth: 1970 Significant assignments outside Storskogen: Auditor in charge of Rejlers. Board of Directors CORPORATE GOVERNANCE Storskogen Annual and Sustainability Report 2025 38 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE CORPORATE GOVERNANCE REPORT BOARD OF DIRECTORS GROUP MANAGEMENT BOARD OF DIRECTORS’ REPORT ON INTERNAL CONTROL SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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CHRISTER HANSSON CEO Consultant since: 2016 and employee since 2021, CEO since 2024 Year of birth: 1972 Education: MBA in Finance, Stockholm University Employment history: Head of Business Area Trade at Storskogen, Country Manager and Nordic Service & Solution Director at Dustin, Senior Sales Manager at Telia Significant assignments outside Storskogen: Board member of Scalata AB and Scalata Invest AB Shareholding, own or held by related parties, as at 31 December 2025: 33,932,461 B shares of which 22,250 are savings shares in the share savings programme. 1,210,799 warrants and 0 employee stock options FREDRIK BERGEGÅRD EVP, Head of Business Area Industry Employed since: 2021 Year of birth: 1971 Education: MBA, IMD in Switzerland and MSc in Engineering and Management, Chalmers University of Technology in Gothenburg Employment history: Sales Director at Ahlsell, VP Sales at Gunnebo Industrier, Business Area Manager at Electrolux and Strategy Consultant at Accenture Significant assignments outside Storskogen: Chair of the Board of BIQ Materials AB, Board member of MIAGC AB Shareholding, own or held by related parties, as at 31 December 2025: 674,469 B shares of which 22,250 are savings shares in the share savings programme. 481,630 warrants and 0 employee stock options LENA GLADER CFO Employed since: 2019 Year of birth: 1976 Education: Master of Business Administration, Hanken School of Economics Employment history: CFO of Eastnine, SVP of Diplomat Commu- nications, IRO at Tele2, Partner at Shared Value, Equity analyst at Alfred Berg ABN AMRO Significant assignments outside Storskogen: Board member of Tagehus Holding AB and Electrolux1) Shareholding, own or held by related parties, as at 31 December 2025: 849,143 B shares of which 22,250 are savings shares in the share savings programme. 662,519 warrants and 90,000 employee stock options ÅSA MURPHY EVP, Head of Business Area Trade Employed since: 2021 Year of birth: 1974 Education: Jönköping International Business School, Cesar Ritz Hotel and Business Management School in Switzerland Employment history: Investment Director at Storskogen, Managing Director of Bookatable Nordic & DACH, Vice President Revenue & Distribution at Nordic Choice Hotels, Nordic Director at Expedia Significant assignments outside Storskogen: Board member of Autoservice i Mullsjö AB and BizStrat AB Shareholding, own or held by related parties, as at 31 December 2025: 28,900 B shares of which 10,383 are savings shares in the share savings programme. 729,880 warrants and 0 employee stock options JOHAN EKSTRÖM EVP, Head of M&A Employed since: 2021 Year of birth: 1970 Education: PhD in Business Administration with focus on M&A, Lund University Employment history: Head of M&A Sweden at Stortskogen, Partner at EY, Head of Business Area Consumer at Volati AB, Business Area Head at Skandia, Partner at Accenture Significant assignments outside Storskogen: Board member of Skidsta Hus AB Shareholding, own or held by related parties, as at 31 December 2025: 276,426 B shares of which 14,277 are savings shares in the share savings programme. 656,003 warrants and 0 employee stock options JESPER KRONSTRAND EVP, Head of Business Area Services Employed since: 20262) Year of birth: 1975 Education: University studies at the University of Skövde, University of Applied Science in Coburg, Germany, and the School of Business, Economics and Law at the University of Gothenburg Employment history: CEO of SoVent Group AB (a Storskogen business unit), CEO of Newsec Technical Services AB, Partner at Stronghold Invest, Business Area Manager at Relacom, Manager at PIR Significant assignments outside Storskogen: – Shareholding, own or held by related parties, at the start of his employment on 1 February 2026: – MIKAEL NEGLÉN EVP, Head of Storskogen DACH Employed since: 2020 Year of birth: 1972 Education: MSc in Business and Economics, Stockholm School of Economics Employment history: Managing Director of Porterhouse Group AG, Division Manager at Barry Callebaut AG, Investment Manager at Jacobs Holding AG, Senior Associate at Investor AB Significant assignments outside Storskogen: Board member of Arzthaus.ch AG Shareholding, own or held by related parties as at 31 December 2025: 2,433,660 B shares of which 33,036 are savings shares in the share savings programme. 0 warrants and 748,897 employee stock options CHRIS PULLEN EVP, Head of Storskogen UK Employed since: 2022 Year of birth: 1970 Education: MBA, Durham University and Graduate of the Royal Military Academy, Sandhurst Employment history: Investment Director at Storskogen, CEO and CFO of Staffline Group plc, CEO of idverde UK Ltd, Global Managing Director of IWG plc and CEO of APCOA Parking UK Ltd Significant assignments outside Storskogen: – Shareholding, own or held by related parties, as at 31 December 2025: 205,400 B shares of which 24,532 are savings shares in the share savings programme. 0 warrants and 533,285 employee stock options Group management 1) Subject to a resolution at Electrolux’s AGM on 25 March 2026. 2) Jesper Kronstrand succeeded Peter Ahlgren on 1 February 2026. CORPORATE GOVERNANCE Storskogen Annual and Sustainability Report 2025 39 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE CORPORATE GOVERNANCE REPORT BOARD OF DIRECTORS GROUP MANAGEMENT BOARD OF DIRECTORS’ REPORT ON INTERNAL CONTROL SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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The purpose of good internal control is to achieve effective operations that meet their targets. The internal control shall further ensure reliable internal and external financial reporting and compliance with applicable internal and external laws and regulations. Storskogen has adopted methodical working methods and structured procedures for adopting the framework for internal control of financial reporting. An annual self-assessment of the organisation and the business unit’s internal controls of financial reporting is also con- ducted. The purpose of the assessment is to ensure and monitor that the internal control is fit for purpose and that the organisation is structured so that the accounting, the management of funds and all other aspects of the Company’s financial conditions are verified in a satisfactory manner. These efforts ensure that the finance function is functional and has the resources required to provide good and reliable financial reporting. All in all, the Board is of the view that the Company and its business units are managing internal control adequately and have proper procedures in place and that there is no need for an internal audit function. The internal control structure is based on the internal control framework published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According to COSO, the review and assessment cover five areas where the control environment creates discipline and provides a structure for the other four areas: risk assessment, control activities, informa- tion and communication and monitoring activities. Control environment The Rules of Procedure of the Board and the instructions to the CEO and committees of the Board ensure a clear division of roles and responsibilities for effective manage- ment of the business and its risks. The Board has adopted basic guidelines and policies as required to ensure a good control environment. Storskogen has a common system for reporting, consolidation and follow-up on results within the Group. The Group man- agement prepares ongoing instructions for the Group’s financial reporting in addition to the policies adopted by the Board. Impor- tant components in Storskogen’s control environment are reflected in the policies and instructions adopted by the Board and the Group management, including: • Code of Conduct • Anti-Corruption Policy • Internal Control Policy • Instructions for financial reporting • Insider Policy • Communication Policy • Finance Policy • Authorisation Rules • Sustainability Policy • Work Environment Policy • Gender Equality and Diversity Policy • Anti-Money Laundering Policy • P olicy on Sanctions and Export Control • Whistleblowing Policy • Risk Policy • Information Security Policy • IT Policy • IT Contingency Policy • Privacy policies • Related Party Policy Risk assessment Storskogen’s risk assessment aims to iden- tify and assess risks associated with busi- ness units, strategy, financing and liquidity, climate impact and climate change, social sustainability risks and the risk of errors in the Company’s financial reporting. The risk assessment forms the basis for the work on ensuring that the Company’s control func- tions are adequate. Storskogen conducts ongoing risk analyses of business units. Once a year, the Group management holds a comprehensive risk workshop to identify the Group’s significant risks, their probability and potential impact, and prepares action plans to manage any identified risks. The work on risks is reported to the Audit Com- mittee and the Board annually and when necessary. Read more about Storskogen’s risk management on p. 29. Control activities Storskogen’s most significant risks are man- aged via control structures in the Group. Risk management can take the form of mit- igating measures, acceptance or complete elimination of risks. In 2025, several control activities were carried out. Companies that were acquired over the period initiated, and in some cases completed, the surveying of their internal financial controls and procedures. Group companies are divided into two scopes – smaller and larger companies – based on sales and other relevant circumstances. The smaller companies rely on 37 standardised key controls related to the accounts preparation and revenue process, information security, purchasing, payroll management and taxes. In 2025, controls linked to sustainability reporting were also implemented. The larger companies’ internal control is more advanced, with additional processes and key controls. When processes in the larger companies’ control structures are surveyed, Storskogen’s central function assists the companies when needed. Any deviations in the control processes are followed up in the annual self-assessments. In 2025, Storskogen’s business units performed annual self-assessments of their respective key controls. Whenever control deviations were noted, action plans were established. The results of these self-assessments were reported to the Audit Committee. The control structure means that any deviations and issues identified during the internal control are reported to the board of the business unit in question and to Storsko- gen’s central function, which in turn reports to the Audit Committee on an aggregated level. Information and communication External financial information must be accurate, complete and relevant. The provision of information is based on the Company’s Insider Policy, which meets Board of Directors’ report on internal control CORPORATE GOVERNANCE Storskogen Annual and Sustainability Report 2025 40 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE CORPORATE GOVERNANCE REPORT BOARD OF DIRECTORS GROUP MANAGEMENT BOARD OF DIRECTORS’ REPORT ON INTERNAL CONTROL SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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the requirements imposed on a listed company, and instructions on information security and the communication of financial information, both internally, between the Board, Group management and employees, and externally, to shareholders and other stakeholders. Storskogen’s Insider Committee is convened when necessary to determine whether information constitutes specific information. The Insider Committee also decides whether information must be disclosed without delay or whether the disclosure can be postponed. Regular infor- mation disclosed to the market includes interim reports and presentations, annual reports, regulatory press releases and other press releases about important news. Follow-up on control activities To ensure effectiveness, internal control activities are regularly followed up by the Board, Audit Committee, CEO, Group management, finance department and the Group’s business units. The follow-up includes reviewing monthly financial reports against targets, making demand-driven financial evaluations of business areas and sub-segments and reviewing the results of internal audits. The follow-up also includes observations reported by Storskogen’s external auditor. CORPORATE GOVERNANCE Storskogen Annual and Sustainability Report 2025 41 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE CORPORATE GOVERNANCE REPORT BOARD OF DIRECTORS GROUP MANAGEMENT BOARD OF DIRECTORS’ REPORT ON INTERNAL CONTROL SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Sustainability Report General information Basis for preparation . . . . . . . . . . . . . . . . . . . . . 43 Sustainability governance . . . . . . . . . . . . . . . . 44 Strategy, business model and value chain . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Material impacts, risks and opportunities . . . . . . . . . . . . . . . . . . . . . . . . . 50 Environmental information Taxonomy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 E1 Climate change . . . . . . . . . . . . . . . . . . . . . . . . 54 E5 Resource use and circular economy . . . . . . . . . . . . . . . . . . . . . . . . . 64 Social information S1 Own workforce . . . . . . . . . . . . . . . . . . . . . . . . . 66 S2 Workers in the value chain . . . . . . . . . . . . . . 71 Corporate governance information G1 Business conduct . . . . . . . . . . . . . . . . . . . . . . 72 Appendix List of datapoints derived from other EU legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 ESRS content index . . . . . . . . . . . . . . . . . . . . . . . . 78 List of disclosure requirements . . . . . . . . . . . 79 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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General information Basis for preparation BP-1, BP-2 Basis for preparation of the Sustainability Report Reporting period The reporting period applicable to the Sustainability Report is the same as for the Financial Statements and covers the period from 1 January to 31 December 2025 . Framework and reporting of data The Sustainability Report was prepared pursuant to the Swedish Annual Accounts Act and the European Sustaina- bility Reporting Standards (ESRS) . D atapoints included in this report were deemed material pursuant to the Company’s double materiality assessment (DMA) . A ll disclosure require- ments included in the Sustainability Report are provided in the ESRS content index on p . 7 8 . Consolidation The Sustainability Report includes the entire Group (Group level) . C onsidering Storskogen’s decentralised business model and business units in different industries, it is not always effective to consolidate all indicators at the Group level . E ach business unit is also responsible for the strategy, targets and customised action plans developed based on the business unit’s specific business model and market. Business units acquired over the year are included in the sustainability reporting as of the acquisition year if the acquisition is deemed material from a sustainability per- spective . Acquisitions considered non-material are not included in the sustainability reporting until the following year . Business units divested during the year are not included in the sustainability reporting . The number of reporting business units included in the Sustainability Report amounted to 111 (112 including Stor- skogen Group), compared to 114 in the Financial Statements . The difference was because the year’s acquisitions were considered non-material from a sustainability perspective and will be included in the following year’s reporting, and divested entities (Motavo Group) were not included in the year’s sustainability reporting . The Sustainability Report includes impacts, risks and opportunities arising throughout the value chain . Each ESRS disclosure was subject to a separate assessment to deter- mine whether it is related to the entire value chain or merely to the Company’s own operations . Policies, measures and targets related to the upstream and downstream value chain are described in the relevant sections of the Sustainability Report . External review The Sustainability Report is subject to limited assurance by Storskogen’s auditor. However, comparative figures from the previous year (2024) were not included in the limited assurance . Estimates, sources of estimation and outcome uncertainty The Sustainability Report contains estimates, particularly in Group-wide reporting . T hese estimates are based on available internal data, external sources and reasonable assumptions and chiefly relate to Scope 3 reporting. Efforts are being made to improve data quality in climate report- ing, such as by obtaining access to precise emission factors directly from suppliers . W herever estimates in the value chain or uncertain measures are used, this is explained where the information is presented . Changes in preparation of sustainability information and reporting errors in prior periods The disclosures in this Report were extended in 2025 to meet the CSRD requirements, in accordance with the ESRS . If practices have changed or errors have been made since the previous reporting period, these changes are described in the section where the topic is reported . Omissions Pursuant to the ‘Quick Fix’ delegated act (EU) 2023/2775, Storskogen has opted to apply the following phase-in reliefs in the report: • Quantification of the financial effects of sustainability risks, ESRS 2 §68 (c) . • Disclosure requirements for ESRS S2 Workers in the value chain . A summary description is provided on p . 71 . • Disclosure requirements for ESRS S1-7 Non-employee workers in the undertaking’s own workforce . No information on intellectual property, know-how or results of innovation was omitted . T his also applies for information on potential future developments or ongoing negotiations . Also, Storskogen has not currently assigned any monetary value to the Group’s climate change-related investment plans . T his piece of information is not yet made public, as further documentation and analysis are required to ensure fair estimates . Incorporation by reference If information has been published in other sections of the Annual Report, incorporation by reference is used to avoid double reporting . See the ESRS content index, p . 78 . SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 43 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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GOV-1 Roles and responsibilities of the Board and the Group management The Board of Storskogen is ultimately responsible for the Group’s sustainability initiatives and overarching sustaina- bility strategy. The Board consists of five Board members: Annette Brodin Rampe, Chair, Robert Belkic, Alexander Bjärgård, Louise Hedberg and Johan Thorell . A lexander Bjärgård, Senior Advisor and Chair of the Investment Com- mittee, is the only Board member with an operational role in Storskogen . T here are no workers’ representatives on the Board . T he Board has extensive experience in corporate acquisitions and divestments, industry, finance, corporate governance and sustainability, in Sweden and internation- ally . T he Board is comprised of 60 percent men (3) and 40 percent women (2) . O f the Board members, 80 percent (4 out of 5) are independent of the major shareholders . Over the year, the Sustainability Committee was responsi- ble for supervising the reliability of the sustainability report- ing and monitoring the effectiveness of Storskogen’s internal control . Their work is supported by the Audit Committee, which monitors financial reporting, internal control and risk management; the Remuneration Committee, which pre- pares remuneration policies and follows up on their applica- tion; and the Sustainability Committee, which follows up on sustainability targets and strategy, the management of sus- tainability risks and regulatory compliance and coordinates reporting issues with the Audit Committee . The Sustainability Committee and the Audit Committee receive reports from the auditor’s limited assurance of the reliability of the sus- tainability reporting . Responsibilities and mandates are stated in the Rules of Procedure of the Board and the instructions to each com- mittee . The CEO is responsible for the day-to-day manage- ment . Storskogen’s Head of Sustainability has operating responsibility for the sustainability area and regularly reports to the Group management and to the Board through the Sustainability Committee . The Group follows up on the work in the business units through representation on the board of each business unit . The Board and the Group management review and evaluate targets linked to Storskogen’s material impacts, risks and opportunities annually . Work is ongoing to develop the pro- cess and make following up on results and measures more systematic by using key figure overviews and improved documentation for decisions . Storskogen also strives to strengthen its sustainability reporting process by introduc- ing controls for data strategy, collection, calculation, valida- tion, approval and documentation, making these initiatives an integrated part of the Group’s risk management and internal control . Lines of reporting and division of responsibil- ities have been established, and important issues are esca- lated to the Board through the committees, pursuant to an adopted procedure . Storskogen’s Board ensures that all governance bodies include relevant sustainability expertise, such as through the Sustainability Committee, targeted training for members and access to external expertise when required . Over the year, targeted training was provided in relevant areas such as due diligence in the value chain (CSDDD), human rights and reporting legislation . At least one Board member has documented sustainability expertise that is relevant to the Group’s operations and risk profile. All sustainability-related Group-wide policies at Storsko- gen are subject to an annual review and adoption by the Board. Any identified impacts, risks and opportunities are then taken into consideration . In line with Storskogen’s decentralised governance model, the CEO of each business unit is responsible for ensuring that the operations are con- ducted in accordance with the Group’s policies . The busi- ness units may supplement the Group-wide policies with their own guidelines and programmes on Group-wide top- ics as well as material sustainability matters that are not covered by the Group’s policies . Storskogen’s policies are described on p . 52 and below each standard . The business units’ sustainability initiatives are also described under the heading Strategy, business model and value chain on p . 46 . GOV-2 Information to the Board and Group management The Board, Sustainability Committee and Group manage- ment received continuous reports on sustainability over the year . T his reporting included information on material impacts, risks and opportunities, the Company’s due dili- gence process and adopted or planned measures . T he Board was also provided with insights from Storskogen’s stakeholder dialogues and status updates regarding poli- cies, targets and key figures. Specific events in the business units are reported to the Board of Storskogen through the Group management, which gathers information from members of the business unit boards who represent the Group . T his reporting is included in the documentation sup - porting decisions on strategy and business planning . T here are ongoing initiatives to strengthen the link between sus- tainability-related information and investment decisions and the overarching risk management process . I n addition to the continuous reports to the Board, an in-depth review of Storskogen’s sustainability-related initiatives and material matters is conducted yearly . The Sustainability Committee receives documentation on data quality, key controls and the status of the external review of sustainability data, and the Audit Committee receives information on target fulfilment, process evalua- tions and a review of the Sustainability Report . Storskogen’s Head of Sustainability is responsible for the overall sustaina- bility reporting to the Sustainability Committee and the Board . Storskogen’s CFO is responsible for ensuring compli- ance of the sustainability reporting with applicable regula- tions and the link between sustainability data and financial data . In 2025, the Board considered the Group’s material impacts, risks and opportunities in connection with the review of the materiality assessment . Particular focus areas over the year included reducing climate impact, a Group- wide programme for responsible supply chains and adap- tation to new reporting requirements according to the CSRD and the ESRS . Sustainability governance GENERAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 44 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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GOV-3 Incentive schemes Storskogen is working to ensure that its incentive schemes support long-term value creation and effective sustainabil- ity initiatives throughout the Group . T he Group has previ- ously had a long-term incentive programme for the Group management (from 2022 to 2025) with reducing climate- impacting emissions as its sustainability-related key indica- tor . T he programme was adopted by the 2022 AGM and aimed to link remuneration with the fulfilment of financial and sustainability targets . T he adopted sustainability target was to reduce emissions in Scopes 1 and 2 in the existing portfolio by 20 percent within three years. A fixed percent- age of 10 percent of the total incentive allocation was linked to the target, with the outcome that the target was met . Following completion of the programme, it will now be used by the Group to evaluate and discuss how to design future incentive programmes to support the Group’s targets and strategy in the best possible way . GOV-4 Due diligence process Storskogen is working to establish a Group-wide due dili- gence process that covers the entire value chain, with particular focus on human rights, working conditions, the environment and business ethics . T his work is based on the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises and aims to identify, prevent, mitigate and report actual and potential negative impacts . T he due diligence process forms a cen- tral basis for assessing Storskogen’s material impacts, risks and opportunities . Several existing procedures and working methods, such as supplier assessments, codes of conduct, risk assessments and follow-up, already form important parts of the process . In the year ahead, Storskogen will focus on further develop- ing and formalising the process, clarifying the division of responsibilities and fully embedding due diligence in the Group’s governance, decision-making and reporting . One priority is to strengthen the link between due diligence and stakeholder dialogues to safeguard stakeholder perspec- tives in risk assessments and prioritisations . Storskogen’s main risks in the supply chain include the work environment, working conditions and environmental impact . To manage these risks, regular supplier reviews and risk assessments are performed, and social and environ- mental risks are mapped, particularly in high-risk areas of the value chain . Since 2021, Storskogen has developed its work with suppliers through risk assessments, e-learning initiatives and integration into management systems . The central organisation also supports the business units in their risk-related efforts, which are followed up through the board of each business unit . The outcomes of risk assessments are used to support purchasing decisions and supplier selection . When high-risk suppliers are identified, the business units may decide on required improvement measures or follow-up reviews or terminate the cooperation . Risk assessments are also used to evaluate and decide on new acquisitions . The table below shows disclosures related to Storskogen’s current due diligence process . Core elements of due diligence Section of the Sustainability Report Embedding due diligence in govern- ance, strategy and business model GOV-2 Matters addressed by the Group management GOV-3 Incentive schemes SBM-3 Double materiality assessment Engaging with affected stakeholders in all key steps of the due diligence process GOV-2 Matters addressed by the Group management SBM-2 Stakeholder dialogue IRO-1 Double materiality assessment process Identifying and assessing adverse impacts on people and the environment IRO-1 Double materiality assessment process SBM-3 Double materiality assessment Taking action to address those adverse impacts E1, E5, S1, S2, G1 – Actions Tracking the effectiveness of these efforts and communicating the outcome E1, E5, S1, S2, G1 – Metrics and targets GENERAL INFORMATION GOV-5 Risk management and internal controls over sustainability reporting Progress towards targets and key figures is regularly moni- tored, including through the quarterly climate reporting . I n case of deviations, action plans are adopted with assigned responsibilities, time frames and expected effects . M aterial changes to the risk situation or rules and regulations are considered when setting priorities, allocating resources and making potential adjustments to targets . T he supporting documentation is based on documented data collection, quality assessment and authorisations . S ustainability reporting is currently being integrated into the Group’s risk management, internal control and regulatory compliance . The method for risk assessment related to the sustaina- bility reporting complies with Skorskogen’s operational risk policy . Each risk is evaluated based on the likelihood that the event will occur and the scale and scope of the negative impact . Events with the highest risk value take priority and are handled first. The risk assessment is updated at least once annually and as needed . To identify risks related to Storskogen’s sustainability reporting, the various steps of the sustainability reporting process have been analysed . The main identified risks are: • Reporting of incomplete or unreliable data • Incorrect collection of sustainability information for report- ing (including manual errors) • Incorrect analysis based on incomplete data • Sustainability reporting that does not meet stakeholder expectations • Inadequate identification of new data or legislative requirements prior to reporting A central component in the control system is the IT system used for sustainability reporting, which has been adapted to the ESRS/CSRD . T he current system supports structured and traceable data collection and documentation . The system’s built-in control mechanisms are currently being evaluated to determine how they can be used to ensure that information is provided according to adopted instructions and current regulatory developments . This work is currently performed manually through a review con- ducted by the finance and sustainability functions before reporting to the Board . SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 45 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Strategy, business model and value chain GENERAL INFORMATION SBM-1 Sustainability in the business model – for long-term value creation Storskogen’s business model is built on decentralised, long- term and active ownership, where business units retain their entrepreneurial spirit while benefiting from the support of a larger, diversified Group. The return generated in the Group is reinvested to create organic and acquired growth . The business model comprises three parts: 1. Opportunity The market for acquiring and developing small and medi- um-sized businesses represents an evergreen opportunity . Many entrepreneurial businesses with proven business models reach a point where they face a change in owner- ship and are unable to meet the increasing requirements of digitalisation, internationalisation and sustainability on their own . B y becoming part of Storskogen, these compa- nies gain access to capital, expertise and peer-learning, creating the conditions needed to reach their full potential . 2. The Storskogen model The Storskogen model is based on decentralisation com- bined with long-term and active ownership . T he business units are responsible for their daily operations and retain their entrepreneurial spirit while benefiting from strategic and operational support in areas such as corporate gov- ernance, investments, succession and sustainability . Common frameworks, digital platforms and networks enable synergies and knowledge sharing, while diversifi cation across geographical areas and business sectors contributes to stability . 3. Result and value creation Storskogen strives for profitable growth and stability across economic cycles . I nvestments are made in organic growth and acquisitions, focusing on five themes: health and well being, energy and sustainability, digitalisation, automation and infrastructure . T hrough focused investment themes and financial discipline, Storskogen creates the foundation for profitable growth and a stable Group that can generate long-term value for all stakeholders . Strategy for value-creating sustainability initiatives Sustainability is an important element in Storskogen’s value- creation strategy . S ustainability issues are integrated into the selection of acquisition targets, investment decisions and Storskogen’s active, but decentralised, ownership . S tor- skogen’s strategy and business model have not changed compared with the previous year, but the sustainability governance model was aligned and clarified over the year and turned into a Storskogen Standard – a joint framework that can be applied to the business units’ various business models . The Storskogen Standard sets a common minimum level for all business units in the Group through policies, tools and training . The business units also perform materiality assess- ments and adopt targets, key performance indicators and action plans of their own, based on their business models and materiality . Targets and actions are followed up by each board at least annually . This ensures that the CEOs of the business units remain responsible for performance and that targets and actions are relevant and drive business for each business unit . In addition to the targets adopted at the Once the acquisition of a new business unit has been completed, Storskogen’s sustainability process and the Storskogen Standard framework are presented to the business unit’s management . W hen the framework has been implemented, strategic discussions are held to encourage the business unit’s management to devise targets and an action plan for its sustainability initiatives . T he minimum level is established through the Storskogen Standard, which includes Group- wide targets on climate, gender equality and business ethics . B ased on this, the business units adopt targets of their own, based on their conditions and ambitions . T he initiatives are followed up at least annually at board meetings in the business unit, where the progress and challenges of the sustainability initiatives are discussed as a standing item on the agenda . 1. Evaluation Due diligence process includes ESG aspects 2. Introduction Sustainability process and the Storskogen Standard 3. Strategic discussion In the board and management of each business unit 5. Continuous sustainability initiatives Based on Group- wide and own targets 4. Targets and action plan Adopted by the management of the business units 6. Reporting and follow-up Occurs at the busi- ness units’ board meetings AcquisitionStorskogen’s sustainability process SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 46 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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GENERAL INFORMATION business unit level, the Storskogen Standard includes Group- wide targets, including greenhouse gas reduction, gender equality and providing business ethics and anti-corruption training for all employees in high-risk positions . High-risk positions refer to positions in purchasing, logistics and sales, where the duties may include an increased exposure to risks related to corruption and improper benefits. As the area of sustainability is constantly evolving, regular skills development is central . Mandatory sustainability train- ing for CEOs, heads of sustainability and board representa- tives is supplemented by Storskogen’s sustainability network and recurring forums for experience sharing. Target conflicts between costs, service reliability and reduced emissions are managed through joint investment criteria, impact assess- ments and board decisions . Thereafter, the practical sus- tainability initiatives are developed gradually . In the short term, this is achieved through energy efficiency measures, streamlining and stricter requirements on suppliers; in the medium term, through product and service transitions and investments in renewable energy; and in the long term, through increased circularity and value offerings with low climate impact . Strategic priorities are updated annually and, as they evolve, are included in stakeholder dialogues . Storskogen’s value chain Storskogen’s business units are active in the industry, trade and services sectors and serve both corporate customers and consumers . R evenue is derived from the sale of prod- ucts, the delivery of services and service agreements . V alue creation relies on access to capital, energy, steel and other input materials, as well as an extensive network of suppliers and partners . S torskogen’s value chain is complex due to the wide variety of business units . I n the value chain, which is presented below, activities are illustrated on a general level to map where impacts, risks and opportunities may arise . The Services business area comprises 53 business units that offer a wide range of services, chiefly in infrastructure, freight and freight forwarding, technical installations and digital services . Business units in the business area purchase contracting services, building materials and transportation . The majority of suppliers are located in Sweden . The Trade business area comprises 26 business units that offer leading brands and distribute products such as home furnishing, haircare and cosmetics, sports and outdoor recreational activities and professional equipment for industry and service companies . Purchases include a wide range of products in materials such as textiles, ceramics, plastic, iron, aluminium, glass and wood . Suppliers are mainly located in Europe and Asia . The Industry business area comprises 35 business units that offer advanced automation solutions, high-quality manufacturing and heavy engineering . Purchases mainly include raw materials in the form of metals, such as steel, aluminium and zinc, but also food, various components, machinery and tools . Suppliers are mainly located in Europe and Asia . 1. Reduced greenhouse gas emissions Target (Scopes 1 and 2): Reduce greenhouse gas emissions in Stor- skogen’s own operations by 59 percent by 2034 and by 90 percent by 2050 . F ocus is on the largest emission sources: energy use and own transportation . How Storskogen does it: By transitioning to renewable energy, energy efficiency and electrification of Storskogen’s own vehicle fleet. Ensuring support: Through dialogues with business units and key suppliers . Target (Scope 3): Reduce greenhouse gas emissions in the value chain by 64 percent by 2034 and by 97 percent by 2050 . T he focus is on the largest emission sources: purchased steel and transportation . How Storskogen does it: By purchasing steel with less climate impact and choosing fossil-free transportation . Ensuring support: Through dialogues with business units, key suppliers and key customers in the B2B segment . 2. Increased equality in senior roles Target: Achieve a gender distribution in the range of 40–60 percent in senior roles in the central organisation . How Storskogen does it: With a structured internal supply of managers, including recruitment processes and targeted leadership development initiatives . Ensuring support: The target was designed in collaboration with the Group’s HR function and reflects the organisation’s values and employees’ expectations for more gender-equal leadership . 3. Training for employees in high-risk positions Target: All employees in high-risk positions shall participate in business conduct and anti-corruption training . How Storskogen does it: Business conduct and anti-corruption training is provided to all employees in high-risk positions . Ensuring support: By engaging in dialogues with all business units (functions for purchasing, logistics and sales) . Storskogen’s targets in relation to stakeholders Storskogen’s Group targets were established in dialogue with key stakeholders and focus on the areas where the Group has the most impact . SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 47 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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GENERAL INFORMATION Storskogen’s value chain Own operationsUpstream Downstream Raw materials Production TransportationOther products and services Use of products and services Recycling, waste Logistics and transportation Own workforceWorkplace Own production Sustainability topics Impacts: Scope 3 emissions from purchases and transport, issues related to materials and chemicals, suppliers’ resource use and energy consumption . Risks: Working conditions, human rights and busi- ness ethics among suppliers . Opportunities: More sustainable choices of materi- als, supplier development and circular purchasing models . Sustainability topics Impacts: Scope 1 and 2 emissions, resource use and work environment and working conditions in the operations . Risks: Shortages of critical raw materials and prod- ucts, increased costs due to environmental legisla- tion, inadequate business ethics . Opportunities: Energy efficiencies, renewable energy, process improvements, electrification of transport and development of attractive, inclusive workplaces . Sustainability topics Impacts: Scope 3 emissions related to the distribu- tion, use and final treatment of products and ser- vices, and to resource use and waste . Risks: Corruption and fraud related to inadequate business ethics . Opportunities: Circular business models, design for resourcee fficient use and improved recycling. Suppliers - P urchase of raw materials, components, packaging materials and input goods . - A cquisition and maintenance of capital goods and purchase of energy and services . - O utsourced manufacturing . - A rriving transport and logistics to warehouses and production units . Storskogen’s business units and facilities - Production, installation, service and maintenance . Offices, warehousing and distribution centres. - Product and service deliveries . Internal transport, business travel and vehicle fleets. Customers and users - D istribution to customers through wholesalers, retailers, e-commerce and direct deliveries . - I nstallation, operation and use of products and ser - vices as well as related service and maintenance . W aste and final treatment of products and packag - ing, including collection, sorting, recycling, energy recovery and landfill. SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 48 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Customers Employees Business units Owners and investors Suppliers Dialogue channels Customer meetings, customer service, websites, social media, customer surveys and trade shows . Dialogue channels Employee survey, regular follow-up with managers and colleagues, annual target and performance review process, and training . Dialogue channels Regular follow-up, board meetings, training and workshops, digital platforms and coopera- tion forums . Dialogue channels Investor meetings, financial reports and capital markets days . Dialogue channels Procurements and requests for proposals, self-assessment questionnaires, audits and regular updates on projects . Purpose • Understand customer requirements and expectations . • Improve customer satisfaction and products . • Improve the ability to deliver when it matters the most . Purpose • Provide attractive employment and career opportunities . • Develop skills, talent and experience . • Promote diversity, equity, inclusion and a sense of belonging . • Promote an environment with committed employees . Purpose • Promote the business units’ understanding of sustainability issues . • Strengthen the business units’ ability to drive sustainability initiatives close to the business . • Improve sustainability reporting . Purpose • Understand how sustainability-related risks and opportunities affect investors’ views of Storskogen’s value and access to capital . • Clarify Storskogen’s sustainability ambitions and performance in relation to investor requirements and expectations . Purpose • Create mutual financial value for suppliers and partners . • Ensure an environmentally and socially responsible supply chain . C ooperate with suppliers who share the same values and are committed to improving sustainable methods . Result Increased customer demand and loyalty . Result • Increased employee loyalty . • Facilitated talent recruitment . Result • Strengthened capacity and understanding of sustainability in management teams . • Improved consistency between the Group’s expectations and the business unit’s practices . • ESG KPIs are reported more consistently based on impact/materiality . • Business units integrate sustainability in stra- tegic planning and in the board’s expertise . Result Improved positioning in ESG risk assessments and investor dialogues, which may facilitate access to capital . Result • Better knowledge and transparency regard- ing suppliers . • Ensure a sustainable supply chain and pro- tect the health and safety of workers in the value chain . Issues raised • Product quality and safety . • C ode of Conduct and policies – work environment and anti-corruption . • Climate data – emissions . Issues raised • Work environment, health and safety . • Working conditions and benefits. • Culture and values . Issues raised • Customer and procurement requirements – climate data, certifications, policies. • Training and support – new laws and regulations . • Best practice – experience sharing between business units . Issues raised • Strategy and value creation – growth, margin, resilience . • Risk and compliance – management, com- pliance, preparedness . • Targets and deliveries – management and follow-up . Issues raised • Clear requirements – in accordance with codes of conduct and policies . • Follow-up and audits – supporting documentation, time plans and deviation management . • Costs and trading conditions – division of responsibilities, transition . Stakeholder dialogues GENERAL INFORMATION SBM-2 Storskogen’s stakeholders Storskogen engages in a continuous dialogue with selected stakeholders to capture expectations and requirements on the Group’s sustainability initiatives . T hese stakeholder views contribute to the direction of initiatives and provide valuable feedback on priorities and initiatives . S takeholder dialogue is a vital element in Storskogen’s due diligence process and materiality assessment . I n the next couple of years, Stor- skogen will plan initiatives to include additional stakeholder groups and create a more structured and continuous dia- logue . T he aim is to strengthen the link between stakeholder perspectives, the double materiality assessment and the due diligence process, leading to better integration of their views in decision-making and priorities . Through this development, Storskogen ensures that its sustainability strategy is based on a comprehensive view of the most important issues, both from business and stake- holder perspectives . The table below shows the main chan- nels for dialogue, the purpose, result, and the issues raised by each stakeholder group . SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 49 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Material impacts, risks and opportunities GENERAL INFORMATION SBM-3 Material impacts, risks and opportunities in rela- tion to strategy and business model Storskogen’s double materiality assessment was devel - oped in 2023 in line with ESRS 2 . A review was performed in 2024 and 2025, which confirmed the outcome in 2023 with no material changes . A n in-depth evaluation of the method- ology and overarching process is planned for 2026 . The assessment focuses on impact materiality (Stor - skogen’s impact on people and the environment) as well as financial materiality (how sustainability matters impact Storskogen’s financial value). The assessment determined that five sustainability matters are material at the Group level: E1 – Climate change E5 – Resource use and circular economy S1 – Own workforce S2 – Workers in the value chain G1 – Business conduct E1 Climate change IRO Type Where in the value chain Time horizon The Group’s direct and indirect GHG emissions Actual negative impact Upstream Own operations Downstream Short-term to long-term Scope 1 and 2 emissions are being handled at present . R egulatory pressure and the transition to net zero emissions extend over the coming decades . Changes in climate- related legislation Transition risk Own operations Short-term to medium-term Emission and import costs for e .g . s teel arise in connection with new regulations, such as CBAM . Acute climate-related events Physical risk Upstream Own operations Downstream Medium-term to long-term Physical climate risks are expected to rise gradually . S ome impacts already occur in certain geographical areas . E5 Resource use and circular economy IRO Type Where in the value chain Time horizon The Group’s resource use Actual negative impact Upstream Own operations Downstream Short-term to medium-term Resource use in linear business models has a negative impact on the environment through the inefficient use of natural resources and increased waste generation . Shortages of critical raw materials and products Transition risk Upstream Own operations Short-term to medium-term Shortages of critical raw materials and prod- ucts due to high demand during the transition to a more sustainable economy . T he volatility of input costs is an immediate problem . The double materiality assessment resulted in the material impacts, risks and opportunities (IROs) summarised below . No material opportunities were identified at the Group level. A more detailed description of material IROs is provided in the section on each standard . R ead more about the process on p . 5 1 . S1 Own workforce IRO Type Where in the value chain Time horizon Work environment and working conditions in the operations Actual negative impact Own operations Short-term to medium-term There are health and safety risks at present . The structured implementation of policies and follow-ups may mitigate long-term effects . S2 Workers in the value chain IRO Type Where in the value chain Time horizon Work environment and working conditions in the value chain Potential nega- tive impact Upstream Short-term to long-term Supplier-related human rights risks are managed in high-risk cases and may need to be extended if the risk situation changes, such as new suppliers, geographical exposure or more stringent statutory requirements . G1 Business conduct IRO Type Where in the value chain Time horizon Business ethics, corrup- tion and fraud . Actual negative impact Risk Own operations Downstream Short-term to medium-term Unethical conduct may arise in both estab- lished business units and newly acquired business units . I t may take time to establish preventative efforts . T he Group has previously been subjected to individual cases of fraud . Time horizon: Short-term (0–2 years), Medium-term (3–5 years), Long-term (5+ years) . Material impacts, risks and opportunities SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 50 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Resilience in strategy and business model A climate resilience assessment was conducted in 2024 in accordance with the Task Force on Climate-related Finan- cial Disclosures (TCFD) . T he purpose was to test how well Storskogen’s strategy and business model withstand vari- ous climate scenarios and identify potential transition and physical risks . T he assessment is described in more detail in the section Climate change on p . 5 4 . D ata from the double materiality assessment was used, and the result shows that Storskogen’s strategy is considered to be resilient in the short-term, but that transition risks associated with increased energy prices, emission reduction requirements and supplier exposure require continued investments in energy efficiency, electrification and renewable energy. Effects of identified IROs on the Group’s business model, value chain, strategy and decision-making There is a mutual connection between Storskogen’s strat- egy and business model and identified impacts, risks and opportunities . M aterial matters affect the Group’s strategic direction while strategic decisions shape how they are managed . S torskogen’s further development of its strategy, through the Storskogen Standard framework, corresponds to the material matters and integrates sustainability in decisions at the Group and business unit levels . I t allows for an effective management of impacts, risks and opportuni- ties close to the business . Focus is on reducing climate impact, increasing energy efficiency, promoting resource efficiency and increasing cooperation with suppliers in the value chain . Additionally, the material matters have increased aware- ness of the importance of an inclusive, safe and respectful work environment . These insights guide the Group’s govern- ance, strategic decisions and dialogues with employees, thus contributing to increased participation and a stronger employer brand . Storskogen’s long-term commitment to responsible and ethical business conduct has been further strengthened by close cooperation with companies and partners in the value chain to prevent risks related to unethical conduct, such as corruption and bribery . For further information on actions, see each standard . Current and expected financial effects Storskogen has assessed whether any of the identified impacts, risks and opportunities (IROs) have or are expected to have a material financial impact on the Group’s position, performance or cash flows, both in the current reporting period and in the short, medium and long-term . The assessment is based on the Group’s risk management strategy, links each IRO to its potential financial effects and determines their scopes and time horizons . The current and expected financial effects are chiefly linked to capital and operating expenditure related to the Group’s climate and transition plan, see Transition plan on p . 55 . The Group also has assets that are exposed to physical risks, such as certain production plants, which means that revenue streams from such assets may be affected by extreme climate-related events . Financial effects may also arise due to investments and increased operating costs associated with actions to mitigate climate impact . The financial effects have not yet been quantified, and efforts to map them are ongoing . IRO-1 Storskogen’s double materiality assessment process In 2023, Storskogen conducted its first double materiality assessment, assisted by external experts . I n 2024, the assessment was updated internally with clarifying criteria, which led to fewer matters being considered material in some verticals, while the Group’s overarching result remained unchanged . T he process complied with the ESRS principles and covered the entire value chain . T his work also served the foundation for the development of Storskogen’s due diligence process . The assessment was initiated by surveying the business model and the verticals’ value chains and assessing the external environment to identify potentially relevant sustain- ability matters . Thereafter, stakeholder insights were gath- ered from investors and the Group management through interviews, which provided a gross list of sustainability matters . Subsequently, each matter was evaluated based on double materiality: Impact materiality What actual or potential impacts could the matter have on people and the environment, in Storskogen’s own opera- tions and in the upstream and downstream value chain? The severity, scope and likelihood of the impact were graded from 1 to 5 . Financial materiality What actual or potential financial impacts (risk or oppor tunity) could the matter have on Storskogen? The likelihood and financial impact of the matter were assessed over the short, medium and long-term . The scope of the potential financial impacts and their likelihood of occurrence were graded from 1 to 5 . In addition to the quantitative grading, a qualitative assessment was performed . A matter was considered to be material if it was deemed to be significant from an impact or financial perspective. Consolidation of results and final review All results were consolidated at the Group level . S torskogen’s Head of Sustainability coordinated assessment of the busi- ness areas, and the final list of material sustainability mat- ters was adopted by the Group management and the Board . A t the beginning of 2025, a review was conducted, which confirmed the outcome in 2024 without changes. A renewed review of the materiality assessment is planned for 2026 . S torskogen will then involve various stakeholder groups in a more structured manner and further deepen the assessment of the Company’s material impacts, risks and opportunities . GENERAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 51 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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At the Group level, the following matters were considered non-material: E2 – Pollution E3 – Water and marine resources E4 – Biodiversity and ecosystems S3 – Affected communities S4 – Consumers and end-users However, these areas include matters that are material to certain business units . T o provide clear support and guide- lines for the business units, the Sustainability Policy contains an undertaking for each aspect . IRO-2 Disclosure Requirements covered by the undertaking’s sustainability statement The Sustainability Report includes disclosures based on Storskogen’s materiality assessment . S ee p . 7 9 for List of disclosure requirements and p . 7 5 for List of datapoints derived from other EU legislation . MDR-P Policies related to material sustainability matters Storskogen has a Group-wide policy framework that covers the Group’s material sustainability matters . T hese policies provide principles and approaches aimed at preventing, mitigating and managing identified impacts, risks and opportunities in the Company’s own operations and, where relevant, in the value chain . All sustainability-related Group-wide policies are subject to an annual review and adoption by the Board . Their identi- fied impacts, risks and opportunities are considered in each review . It is also important for Storskogen that stakeholder views are considered when policies are drafted . Over the next few years, there are plans to create a more structured and continuous dialogue to ensure that their perspectives are integrated into the policies . All material matters are cov- ered by applicable policies . For further information on the application of the policies, see each sustainability standard in this report . GENERAL INFORMATION Storskogen’s Group-wide policy framework E1 – Climate change Policy Climate change mitigation Energy Sustainability Policy Supplier Code of Conduct E5 – Resource use and circular economy Policy Resource inflow Waste Sustainability Policy Supplier Code of Conduct Code of Conduct S1 – Own workforce Policy Sustainability and inclusion Code of Conduct Gender Equality and Diversity Policy Work environment and working conditions Code of Conduct Work Environment Policy Incidents, complaints and issues related to human rights Code of Conduct Work Environment Policy Whistleblowing Policy Storskogen’s CEO oversees the policies, and the CEO of each business unit is responsible for their implementation . The policies are available on Storskogen's website and on the Group’s Knowledge Exchange platform KX (in several languages), which also offers training and overviews . In addition to the Group-wide Sustainability Policy, a template for local sustainability policies is available, which can be adapted by the business units to suit their specific sustainability challenges . Storskogen’s Code of Conduct and Supplier Code of Conduct are based on internationally recognised standards, including the Universal Declaration of Human Rights, the International Labour Organization’s core conventions, the OECD Guidelines for Multinational Enter- prises and applicable environmental and anti-corruption laws . When combined, Storskogen’s Anti-Corruption Policy and its Whistleblowing Policy meet the guidelines in the United Nations Convention against Corruption . S2 – Workers in the value chain Policy Working conditions, human rights Supplier Code of Conduct G1 – Business conduct Policy Business conduct, anti-corruption and bribery Code of Conduct Anti-Money Laundering Policy Anti-Corruption Policy Sanctions Policy Whistleblowing Policy SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 52 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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For the 2025 reporting year, Storskogen chose the option introduced by the EU Delegated Act of 4 July 2025 to con- duct a materiality assessment. According to this option, economic activities that cumulatively fall below 10 percent of each KPI (turnover, CapEx and OpEx) may be omitted from the further assessment of taxonomy-eligibility and taxonomy-alignment. This analysis was based on the previ- ous year’s KPIs and took into account any changes between the years. Taxonomy Financial year 2025 Breakdown per environmental objective for taxonomy-eligible activities KPI (1) Total (2) SEK m Proportion of taxonomy- eligible activities (3) Taxonomy-aligned activities (4) SEK m Proportion of taxonomy-aligned activities (5) Proportion of enabling activities (12) Proportion of transitional activities (13) Not assessed activities considered non-material (14) Taxonmy-aligned activities in previousfinancial year 2024 (15) Proportion of taxonomy-aligned activities in previousfinancial year 2024 (16) Turnover 33.097 0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 5.1% 1.748 0% CapEx 1.399 0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 4.7% 70 0% OpEx 251 0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 7.1% 18 0% All economic activities fell below 10 percent of the denomi- nator of each KPI, both individually and cumulatively, and are therefore non-material. Consequently, such activities were omitted from further assessment pursuant to the Delegated Act. Omitted activities are reported in Table 1, in accordance with the Delegated Act. Storskogen concluded that the turnover and CapEx tables do not add any material information and has consequently chosen to omit them in this year’s taxonomy reporting. The omitted activities chiefly relate to business units in the Group that are active in the Services business area. The majority belong to the Infrastructure Services vertical, which includes land contracting, installations and rail. Only a handful of business units that were previously subject to Storskogen’s taxonomy reporting belong to other business units and verticals. Environmental information Climate change mitigation (6) Climate change adaptation (7) Water (8) Circular economy (9) Pollution (10) Biodiversity (11) Accounting policies The taxonomy reporting complies with the accounting poli- cies u sed i n S torskogen’s fi nancial r eporting. I t d iffers f rom the rest of the sustainability reporting, as the year’s acquisi- tions and divestments are included based on the acquisi- tion a nd d ivestment d ates. T he d efinition o f C apEx i n S tor- skogen’s t axonomy r eporting d iffers f rom t he d efinition o f CapEx i n t he fi nancial k ey p erformance m easures. KPI turnover: Total turnover corresponds to the Group’s total sales according to IFRS (see net sales in the income statement on p. 81). KPI capital expenditure (CapEx): Capital expenditure includes investments in property, plant and equipment and intangible assets, excluding goodwill (see row Investments in the Group’s financial statements, p. 111-114, Note 13-14), additions from business combinations, excluding goodwill (see row Business combinations in the Group’s financial statements, p. 111-114, Note 13-14), and additional right-of-use assets (see row New leases in the Group’s financial state- ments, p. 128, Note 27). KPI operating expenditure (OpEx): OpEx includes direct costs that relate to research and development (non- capitalised), building renovation, short-term leases, mainte- nance and repair of property, plant and equipment and any other direct expenditures relating to the day-to-day servicing of assets of property, plant and equipment by the Company or a third party to whom activities are out - sourced that are necessary to ensure the continued and effective functioning of such assets. Examples of this may include service agreements or the cost of electricity or diesel in connection with repairs (if they can be separated and i dentified). SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 53 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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E1 Climate change Introduction to the matter Storskogen has a responsibility to contribute to the global transition to a climate-neutral economy and to reduce greenhouse gas (GHG) emissions in line with the goals of the Paris Agreement. This work includes both Storskogen’s own operations and the value chain, in which the Group is gradually reducing its climate impact and strengthening its resilience to future climate-related risks. Storskogen's undertaking to minimise environmental impact includes: • Reducing GHG emissions through energy efficiency, electrification and transition to renewable energy sources. • Promoting a circular economy that preserves natural resources and reduces waste. Material impacts, risks and opportunities The table below presents Storskogen’s material impacts and r isks r elated t o c limate c hange. N o G roup-wide m ate- rial o pportunities w ere i dentified f or S torskogen. N everthe- less, t here a re s ignificant o pportunities a t t he b usiness u nit level, including increased demand for products and ser- vices with lower life-cycle emissions and greater energy self-sufficiency. Material impacts and risks related to climate change IRO Type Description Direct and indirect GHG emissions Across the value chain Actual negative impact The Group’s GHG emissions contribute to global warming. Changes in climate- related legislation Own operations Transition risk Changes in climate-related legislation may cause increased costs for GHG emissions and reduced margins. Extremes of weather Across the value chain Physical risk Acute climate-related events may lead to increased operating costs. The Group’s direct and indirect GHG emissions contribute to global warming and constitute an actual negative environ- mental impact. The largest emissions are found in Scope 3, with purchased goods and services and upstream and downstream transportation as the foremost sources. Own transportation accounts for the majority of the Group’s Scope 1 and 2 emissions, with fuel consumption accounting for roughly 80 percent of total emissions. Changes in climate-related legislation and policies consti- tute a transition risk, as increased requirements on carbon pricing, emission reductions or reporting duties may result in increased costs for GHG emissions. This may have a nega- tive effect on profitability, particularly in energy-intensive and transport-intensive operations. Acute climate-related events, such as floods, storms and periods of extreme heat, constitute physical climate risks that may lead to late deliveries, production disturbances and increased operating costs, which may ultimately have a negative effect on profitability. Certain business units are particularly exposed to such risks, chiefly in geographical areas with high vulnerability to extremes of weather. The Group has assessed the risks at the central level, while follow-up and governance are managed based on local conditions, at the business unit level. Scenario assessment and climate-related risks In 2024, Storskogen performed a climate-related resilience assessment pursuant to the TCFD framework. The work was based on the double materiality assessment and is cur- rently being embedded into Storskogen’s regular risk man- agement p rocess. E ach i dentified c limate-related i mpact, risk and opportunity was evaluated based on its severity, likelihood and time horizon (short, medium, and long-term) and considered in relation to Storskogen’s own operations and the upstream and downstream value chains. The results were consolidated and given priority at the Group level to ascertain which climate-related matters are mate- rial pursuant to ESRS E1. The purpose was to identify and assess climate-related risks and opportunities throughout the value chain and evaluate the resilience of the business model when subjected to physical and transitional stress. The assessment was based on two main scenarios: a high-emission scenario (≈4°C) for the assessment of physi- cal risks and a low-emission scenario (≈1.5°C) for the assess- ment of transition risks. Indicators such as extreme precipita- tion, temperature peaks, water stress, electricity prices and carbon dioxide costs were analysed for each scenario. The results showed that increased carbon prices and new cli- mate regulations in a low emission scenario and acute weather events, and disruptions in the supply chain in a high-emission scenario constitute Group-wide material risks. Storskogen’s business model and strategy are considered resilient in the short term, but transition risks associated with rising energy prices and emission-reduction requirements call for a continued focus on energy efficiency, electrifica- tion, renewable energy and the development of climate- related expertise. The risk assessment indicates that 60 per- cent of Scope 3 emissions are exposed to future carbon prices throughout the supply chain. This is reflected in increased costs for purchased steel and logistics. The table on the next page summarises the most material climate-related risks by geographical presence, position in the value chain and a preliminary estimate of the potential financial impact over a five to ten-year time horizon. The assessments are based on internal assessments and Stor- skogen’s 2024 TCFD report and reflect potential costs for climate adaptation, increased operating costs and future regulatory requirements. The integration of climate-related risk assessments in financial planning and investment decisions is ongoing, and estimated financial impacts will be reported gradually as the assessment progresses. The summary supplements the overarching description of the Group’s climate risk management. ENVIRONMENTAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 54 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Material climate-related risks Type of risk Value chain Geographical area Potential impact Floods (acute physical) Across the value chain Global Damage to machin- ery, stoppages and increased insurance premiums Heatwaves (acute physical) Across the value chain Global Health and safety risks, costs of refrigeration and ventilation systems Carbon pricing (transition) Own operations Group-wide Higher costs for purchasing steel and logistics Price shocks on energy and raw materials (transition) Upstream Own operations Global (particularly in Industry) Increased OpEx, volatility risk E1-1 Transition plan for climate change mitigation Storskogen has begun work on a Group-wide transition plan but does not currently have a complete plan that meets the requirements in ESRS E1-1. The current transition plan include the business units with the highest emissions (over 500 tCO 2e), corresponding to approximately 72 percent of the Group’s total emissions in Scopes 1 and 2. The remaining emissions are from business units with relatively lower emis- sion levels, and work to include them in a proportionate and appropriate manner is ongoing. Also, Storskogen has not yet assigned any monetary value to the Group’s climate change-related investment plans. Additional supporting documentation, modelling and analyses are required to ensure reasonable and reliable estimates of climate- related CapEx (capital expenditure) and OpEx (operating expenditure). Consequently, Storskogen has decided not to publish any monetary value. The further development of the transition p lan a nd t he fi nancial q uantification w ill f ollow a s a prioritised element in the Group’s climate initiatives. Storskogen’s climate targets were validated by Science Based Targets initiative (SBTi) in April 2025, confirming that the Group's climate strategy is consistent with international standards and contributes to limiting global warming to 1.5°C. Storskogen’s transition plan was drafted in line with SBTi requirements and includes two short-term targets by 2034 and two long-term targets by 2050. Read more on p. 57. The Group’s transition plan is based on individual transition plans prepared by the business units that have annual Scope 1 and 2 emissions exceeding 500 tCO 2e. These plans ensure that actions and investments are adapted to each business’ conditions and, when taken together, contribute to reaching Storskogen’s overarching climate target. The transition plan was adopted by Storskogen’s Board and Group management. The following actions are expected to help Storskogen reach the targets: • Transition to renewable energy (Scope 1 and 2) • Electrification of the vehicle fleet (Scope 1 and 2) • Energy efficiency (Scope 1 and 2) • Procurement of steel with less climate impact (Scope 3) • Extend the lifetime of products (Scope 3) • Choice of fossil-free transportation (Scope 3) These measures, combined with continuous monitoring of climate data and reporting to the Sustainability Committee, the Board and the Group management, ensure a stable basis for advancing Storskogen’s sustainability initiatives Storskogen’s Climate Transition Plan Ambition: To be a net-zero organisation with targets validated by the Science Based Targets initiative (SBTi) and adapted to the 1.5°C target. Scopes 1 and 2 42% reduction in absolute emissions 59% reduction in absolute emissions 90% reduction in absolute emissions 64% reduction of emission intensity 97% reduction of emission intensity Scope 3 2023 20301) 2034 2050 • T ransition to renewable energy • E lectrification o f t he v ehicle fleet • E nergy e fficiency • P rocurement of steel with less climate impact • E xtend the lifetime of products • C hoice of fossil-free transportation and supporting the long-term climate targets. These actions are described in more detail on p. 56. Storskogen is not excluded from Paris-aligned Bench- marks (PAB). Resources and investments To support the implementation of the transition plan, Stor- skogen will allocate resources and make necessary invest- ments, such as electrifying vehicles and machinery, install- ing solar panels and upgrading heating systems. Increased costs are also expected for renewable energy and renew- able fuels instead of fossil fuels. A process is ongoing to quantify the investment needs in each action area. To mention a few examples, the electrifi- cation of the vehicle fleet is expected to require investments in vehicles, charging infrastructure and training of drivers. In energy efficiency, several profitable actions with a repay- ment period of less than three years were identified, creating incentives for rapid implementation. Transition projects are currently funded mainly with inter- nal funds. 1) Internal milestone, but not an official SBTi target ENVIRONMENTAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 55 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Locked-in emissions Some of Storskogen’s assets and products, such as fuel- powered machinery, vehicles and facilities with fossil-fuel heating systems, may result in locked-in emissions. These may delay emission reductions and increase the risk of future costs associated with the transition, such as rising carbon prices or requirements for new technology. The Group is gradually striving to reduce such exposures through e nergy e fficiency, e lectrification a nd r enewable energy sources, efforts that are expected to be effective in the medium to long-term. Follow-up and reporting Storskogen has established procedures for following up and reporting of progress to reduce the Group’s climate impact. This includes regular reporting from the Head of Sustainabil- ity to Group management and annual sustainability reports. Also, regular follow-up is taking place in Storskogen’s Sus- tainability Committee and Board to ensure that the work is performed in line with adopted targets and strategies, and that corrective measures can be taken when needed. T o enhance monitoring of progress towards the Group’s climate targets, quarterly reporting of Scope 1 and 2 climate data was introduced in 2025 for business units with the larg- est emissions. More frequent reporting will make it possible to determine during the year whether targeted initiatives are required. This also provides the opportunity to improve the year-end accounting process, enhance conditions for external audits and manage external factors, such as increased emission factors if the GHG reduction mandate (Sw. Reduktionsplikt) is abolished. In-depth information on Storskogen’s climate initiatives is available in the Climate Report, which is available on Storskogen’s website. The Climate Report is a supplement to the disclosures made in this Sustainability Report pursuant to ESRS E1 and is not subject to review by the auditors. E1-2 Policies Storskogen’s policy framework describes the responsibilities and undertakings made to reduce climate impacts and ensure responsible conduct throughout the value chain. The framework comprises four policies: • Sustainability Policy – establishes principles for reducing energy consumption, promoting the transition to renew- able energy and ensuring that suppliers comply with local environmental legislation and implement sustainable and resource-efficient procedures. Within the framework of the Sustainability Policy, a Group-wide climate strategy has been adopted. • Code of Conduct – clarifies the expectation that Stor- skogen’s employees and business units shall act in accordance with international standards and ethical guidelines related to the climate and the environment. • Supplier Code of Conduct – states that suppliers shall reduce their emissions and adopt science-based targets that are aligned with the ambitions of the Paris Agreement. • Whistleblowing Policy – offers a safe and anonymous means of reporting suspected irregularities, including violations of policies and undertakings related to the environment and the climate. The function contributes to increased transparency and fortifies Storskogen’s efforts to promote responsible conduct throughout the value chain. The effectiveness of the policies is assessed through annual monitoring of Scope 1, 2 and 3 emissions, the proportion of the Group’s operations that are subject to climate targets and action plans, and the progress of any actions accord- ing to Storskogen’s transition plan (such as investments in renewable energy and fossil-free transportation). F or more information about Storskogen’s policies, see p. 52. E1-3 Actions Transition to renewable energy (Scope 1 and 2) Storskogen has made the transition to renewable energy a priority and strives to source all electricity from renewable sources in all countries in which the Group operates. Busi- ness units are expected to ensure access to renewable energy w herever i t i s p ossible a nd fi nancially r easonable – t hrough c ertified e lectricity c ontracts, o wn p roduction from s olar c ells o r e nergy c ertificates. T he t ransition d oes not only contribute to reducing GHG emissions: it also strengthens Storskogen’s resilience to future changes in energy markers and carbon dioxide regulations. The transi- tion is considered achievable in the short to medium-term. Electrification of the vehicle fleet (Scope 1 and 2) To the extent feasible, Storskogen strives to electrify all passenger a nd c ompany c ars b y 2 030. W here r easonable, heavy machinery and processes that cannot yet be electri- fied a re g radually b eing t ransitioned t o r enewable f uels, such as HVO100 and biogas. These measures contribute to reducing carbon dioxide emissions, and they enhance the Group’s l ong-term t ransition t o a f ully e lectrified v ehicle fleet. Energy efficiency (Scope 1 and 2) Storskogen has set targets and is taking action to reduce energy consumption in energy-intensive business units, particularly related to warehouses, buildings and machine- intensive operations. In Sweden and Denmark, statutory energy mapping is performed, and the results are used in budget and investment decisions. Corresponding measures are t aken i n c ountries s uch a s t he U nited K ingdom, N orway and Switzerland, where the business units comply with national r equirements a nd b est p ractices f or e nergy e ffi- ciency. To ensure accountability, business value and a link to the Group’s long-term climate targets, actions are decided at the board level in each business unit. The transi- tion is considered achievable in the short to medium-term. Procurement of steel with less climate impact (Scope 3) Storskogen strives to reduce the climate impact from pur- chased steel by increasingly selecting suppliers that offer materials with less climate impact, such as recycled steel. The supplier programme requires suppliers to report their emissions and undertake actions to reduce them. ENVIRONMENTAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 56 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Extended lifetime for products (Scope 3) Through design and quality improvements, service offerings and reuse opportunities, the lifetime for products is extended. This reduces the need for new production, reduc- ing indirect emissions in the value chain. Several business units are also developing circular business models such as repairs, refurbishment and remanufacturing. Choice of fossil-free transportation (Scope 3) Storskogen cooperates with transportation partners to increase the proportion of fossil-free transportation, includ- ing by using electric vehicles and alternative fuels, such as HVO100 and biogas. As data collection improves, customer transportation is also being mapped, to identify additional emission reductions across the value chain. Actions to reduce Scope 3 emissions are medium to long-term initiatives. Some activities, such as procurement requirements and cooperation with transportation partners, have effects in the short-term, but are considered to have the greatest effect on emissions in the medium and long-term. E1-4 Targets Climate targets Storskogen has updated its climate targets for Scope 1 and 2 by moving from intensity targets to absolute emission reduction targets in line with the latest SBTi guidelines. This means follow-up and governance towards reductions in actual tCO 2e, regardless of whether the operations are increasing or decreasing. In 2024, Scope 3 targets were introduced to expand Storskogen’s climate ambition to cover the entire value chain. The third year with Scope 3 reporting further enhances the Group’s understanding of indirect emissions and provides a more comprehensive foundation for targeted actions. The climate targets for Scope 3 are intensity targets that are followed up as tCO 2e/ SEK million of value added, which means that the emissions are related to the Group’s value added. The largest emission sources are still in line with the previous assessments: pur- chased steel, transportation and customers’ use of products. Storskogen’s four Group-wide climate-related targets are: Short-term climate targets • Scope 1 and 2: Reduce absolute GHG emissions by 59 percent by 2034 from the base year 2023. Storskogen also has an internal milestone target to reduce absolute GHG emissions by 42 percent by 2030. • Scope 3: Reduce GHG emissions by 64 percent per SEK million of value added by 2034 from the base year 2023. Long-term climate targets • Scope 1 and 2: Reduce absolute GHG emissions by 90 percent by 2050 from the base year 2023. • Scope 3: Reduce GHG emissions by 97 percent per SEK million of value added by 2050 from the base year 2023. The t argets r eflect t he G roup’s u ndertaking t o m inimise environmental i mpact t hrough e nergy e fficiency, e lectrifi- cation and transition to renewable energy sources and pro- moting a circular economy that preserves natural resources and reduces waste. Progress towards climate targets In 2025, Storskogen’s calculated Scope 1 GHG emissions were 31,808 tCO 2e (an increase by 1 percent compared with the base year) and its Scope 2 GHG emissions were 4,180 tCO 2e (a reduction of 54 percent compared with the base year). The calculated Scope 3 GHG emissions were 1,279,011 tCO2e (an increase by 4 percent). The total emission intensity (tCO 2e/SEK million of value added) increased by 6 percent compared with the base year. An internal data monitoring model with quarterly data- points makes it possible to steer towards the 2034 target. Progress towards climate targets is being driven by inter- nal actions and external conditions in the value chain. One challenge is that demand for and supply of transportation solutions with less climate impact do not always develop at the required pace, particularly when they entail an addi- tional cost compared with conventional alternatives (such as HVO100). This may affect the speed of the transition to fossil-free transportation and, consequently, the fulfilment of the target in the short term. For this reason, Storskogen is continuing to prioritise dialogues with customers and logis- tics partners to increase the use of low emission and zero emission alternatives where possible. Methodologies and assumptions related to climate targets Storskogen’s climate targets were calculated according to the S BTi’s s tandard a nd i n l ine w ith t he 1 .5°C s cenario. T he Scope 3 targets are expressed in intensity (tCO2e per SEK million o f v alue a dded) t o r eflect e missions i n r elation t o t he business a ctivity i n a d iversified g roup. The calculations were based on the principles of the GHG Protocol. Emission data were collected from the business units and covered both activity data and spend-based models. Data quality is improving gradually, and future sce- nario adjustments are being considered in the follow-up. The Group’s climate targets cover all operations in Scope 1 and 2 and priority categories in Scope 3, primarily pur- chased goods and services and transportation. The target applies to throughout the Group, regardless of geographical area. When developing the targets, Storskogen considered expectations from investors and lenders, requirements from major customers and dialogues with employees and indus- try initiatives such as the SBTi. This has ensured that the tar- gets are relevant from both a business and a stakeholder perspective. Carbon offsetting Storskogen’s targets were adopted in absolute terms and do not include carbon offsetting. As of 2030, Storskogen intends to introduce transfer pricing and carbon offsetting to the remaining emissions. These measures will not count towards target fulfilment but aim to allocate costs to any remaining emissions, enhance busi- ness incentives, and enable fairer comparisons across the Group. The evaluation of carbon offsetting alternatives, such as nature-based solutions, is ongoing, but actual emission reductions are given higher priority. ENVIRONMENTAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 57 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Metrics Energy consumption (Scope 1 and 2) Storskogen’s total energy consumption was compiled in MWh a nd i ncludes S cope 1 a nd 2 e missions a ccording t o t he definitions o f t he G HG P rotocol, c alculated u sing a m arket- based method. Energy consumption is reported by energy source – fossil, renewable or nuclear – and as total energy consumption related to net sales. GHG emissions (Scope 1, 2 and 3) Storskogen has an established process for measuring and monitoring GHG emissions in Scope 1 and 2. For Scope 3, the first G roup-wide c alculation w as m ade i n 2 023. T he e fforts to improve data quality and coverage are ongoing, particu- larly in more complex areas of the value chain. The year’s reporting constitutes important progress, and the reporting is expected to become more complete and accurate in future years. Storskogen’s GHG calculations comply with the GHG Proto- col guidelines and include Scope 1, 2 and 3. • Scope 1 and 2: Approximately 90 percent (86) of Scope 1 data and 77 percent (59) of Scope 2 data were based on actual data (such as purchased fuel or energy consump- tion). Scope 2 is reported using the location-based and market-based methods. Scope 2 market-based is based on certified renewable energy (70 percent), fossil-free energy (nuclear) (20 percent) and electricity without a certificate (10 percent). • Scope 3: Data is collected from the business units based on activity data (such as tonnes of transported goods), where available. Otherwise, spend-based estimates with emission factors are used. The business units have varying ability to report high data quality. Consequently, data quality varies. The emission factors used are obtained from DEFRA, CADI and national energy authorities. All calculations are based on carbon dioxide equivalents (CO 2e) and include known greenhouse g ases a ccording t o t he I PCC d efinitions. Energy consumption in Scope 2 increased marginally by nearly 2 percent. The purchase of certified renewable electricity rose by nearly 24 percent, while the use of non-origin certified electricity fell sharply by 53 percent. In Sweden, the proportion of fossil-free electricity (including nuclear) is high, at nearly 99 percent, but this figure is much lower interna- tionally. Storskogen is continuing its efforts to ensure access to fossil-free electricity in all its markets. Accounting policies Total energy consumption and energy mix in Scope 1 and 2 include all energy consumption for all Storskogen’s business units and the central organisation. Energy consumption refers to heating, cooling, electricity use, vehicle fuel and fuel use in the operations and has been grouped by fossil, renewable and nuclear sources. Scope 1 includes direct GHG emissions from company-owned and leased passenger cars, vans, trucks, machinery, forklifts, tractors and other fuel-powered equipment. In cases where fuel consumption data were unavailable, the calculations were based on the number of kilometres driven. Scope 1 also includes fuel consumption in the business operations, such as for vehicles or heating, and refrigerant leakage. Scope 2 includes purchased electricity, district heating and district cooling consumed in owned, leased or rented premises as well as pur- chased electricity for charging electric cars. The calculations are based on the amount of energy purchased, kilometres transported, or estimates based on the size of the premises. Scope 2 is reported according to the market-based method. This ensures that the types of energy associated with purchased certificates for the cancellation of Guarantees of Origin are taken into account. In cases where the origin of electricity cannot be stated, the GHG emissions are calculated with an emission factor for the residual mix for each country. The exception to this method is external charging of electric cars, which is calculated using an average mix, as this is assumed to be most representative of the charging that takes place. Energy intensity Energy consumption per net sales, MWh/SEK m KPI 2025 2024 Change, % Energy intensity associated with activities in high climate impact sectors 1) 6.47 6.51 -0.6% 1) Such activities are found within construction and civil engineering, manufacturing of metal goods or machinery and real estate activities. Accounting policies Energy intensity associated with activities in high climate impact sectors is calculated as total energy consumption divided by total net sales. The net sales used totalled SEK 17,790 million (17,651). E1-5 Energy consumption and mix Total energy consumption and mix, Storskogen, MWh KPI 2025 2024 Change, % Total energy consumption 245,166 249,963 -2% Fuel, coal1) N/A N/A N/A Fuel, diesel/petrol 86,671 77,187 12% Fuel, natural gas 18,874 18,083 4% Fuel from other fossil sources 16,631 39,749 -58% Consumption of purchased or acquired electricity, heat, steam and cooling from fossil sources 8,466 13,336 -37% Fossil sources, total 130,642 148,354 -12% Proportion of fossil sources, % 53% 59% -6% Nuclear sources, total 19,879 21,060 -6% Proportion of nuclear sources, % 8% 8% 0% Renewable fuel, total 25,436 19,641 27% Purchased renewable electricity, total (Guarantees of Origin) 50,998 41,220 27% Self-generated energy, total 1,830 N/A N/A Renewable, total 94,646 80,549 18% Proportion of renewable, % 39% 32% 7% 1) Based on the materiality assessment used in Storskogen’s climate calculations, coal is not used for heating. Storskogen intends to collect updated information in this respect by the end of the next financial year. Comments on the outcome The Group’s total energy consumption (corresponding to Scope 1 and 2) was 245 GWh (250) in 2025, which is a reduction of nearly 2 percent compared with the previous year. The business units in the Group have implemented transition measures in recent years, such as increased consumption of renewable electricity, fuel change and electrification of transportation. In absolute figures, the proportion of renewable energy consumption rose by approximately 18 percent to 94 GWh between 2024 and 2025. Fossil energy (Scope 1 and 2) dropped by nearly 12 percent, corresponding to a reduction of 17 GWh. Nuclear energy decreased by 6 percent, corresponding to 1 GWh. The use of fossil energy in Scope 1 decreased by around 10 percent between 2024 and 2025. At the same time, the consumption of renewable energy in Scope 1 rose by 31 percent in the same period, primarily due to the increased use of renewable fuels such as HVO100 and electrification. Electrification of own vehicles increased compared with the previous year. Energy for external charging of passenger cars increased by 35 percent. For service and heavy vehicles, the corresponding increase was 80 percent. ENVIRONMENTAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 58 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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E1-6 GHG emissions Total GHG emissions, Storskogen, tCO2e KPI 2025 20241) 2023 base year1) Δ from base year (2025) 2030 milestone (internal) 2034 target 2050 target Scope 1 and 2 Target Scopes 1 and 2 Scope 1 31,808 36,553 31,508 1% Reduce absolute GHG emissions by 42% from the 2023 base year. Reduce absolute GHG emissions by 59% from the 2023 base year. Reduce absolute GHG emissions by 90% from the 2023 base year.Scope 2, location-based 7,978 8,241 9,229 -14% Scope 2, market-based 4,180 7,927 9,185 -54% Total, location-based 39,786 44,794 40,737 -2% Total, market-based 35,989 44,480 40,693 -12% Scope 3 Target Scope 3 1. Purchased goods and services 916,253 893,347 828,573 11% N/A Reduce GHG emissions by 64% per SEK m of value added from the base year 2023. Reduce GHG emissions by 97% per SEK m of value added from the base year 2023.2. Capital goods 20,323 22,382 20,443 -1% 3. Upstream energy-related activities 9,960 10,697 9,425 6% 4. Upstream transportation and distribution 94,808 111,142 114,437 -17% 5. Waste generated in operations 7,101 6,448 6,191 15% 6. Business travel 1,647 1,767 2,193 -25% 7. Employee commuting 8,986 9,235 9,930 -10% 9. Downstream transportation and distribution 17,932 17,176 15,357 17% 10. Processing of sold products 4,551 4,649 22,224 -80% 11. Use of sold products 191,594 222,111 201,728 -5% 12. End-of-life treatment of sold products 5,839 11,412 1,445 304% 13. Downstream leased assets 16 13 14 11% Total 1,279,011 1,310,380 1,231,961 4% Total GHG emissions (market-based)2) 1,315,000 1,354,860 1,272,653 3% Total GHG emissions (location-based)3) 1,320,320 1,356,174 1,273,578 4% Storskogen does not conduct operations subject to regulated emission-trading schemes, such as the EU ETS or similar national systems. Consequently, the proportion of Scope 1 emissions covered by such systems is 0 percent. 1) The base year and the previous year have been adjusted compared with the most recently reported figures due to divestments of business units, methodological changes and adjustments made during the year. 2) Total GHG emissions, including Scope 2 GHG emissions measured using the market-based methodology. Market-based emissions are ba sed on the energy that an organisation has chosen to purchase, often in the form of contracts or instruments such as Renewable Energy Certificates (RECs). 3) Total GHG emissions, including Scope 2 GHG emissions measured using the location-based methodology. Location-based emissions are based on the average emission intensity of the local energy source, which can be both local and regional. ENVIRONMENTAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 59 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Emission intensity, tCO2e/SEK m KPI 2025 20241) 2023 Base year1) Δ from base year (2025) Emission intensity per net sales (Scope 1, 2 and 3)2) 36.76 37.83 38.48 -4% - Location-based, Scope 1, 2, 3 36.91 37.87 38.51 -4% - Location-based, Scope 2 2) 4) 0.22 0.23 0.28 - Market-based, Scope 1, 2, 3 36.76 37.83 38.48 -4% - Location-based, Scope 2 3) 4) 0.12 0.22 0.28 Emission intensity per value added, Scope 35) 110 118 104 6% 1) The base year and the previous year have been adjusted compared with the most recently reported figures due to divestments of business units, methodological changes and adjustments made during the year. 2) Total GHG emissions, including Scope 2 GHG emissions measured using the location- based methodology. Location-based emissions are based on the average emission intensity of the local energy source, which can be both local and regional. 3) Total GHG emissions, including Scope 2 GHG emissions measured using the market- based methodology. Market-based emissions are based on the energy that an organisation has chosen to purchase, often in the form of contracts or instruments such as Renewable Energy Certificates (RECs). 4) According to the GHG Protocol, carbon dioxide emissions from biomass combustion are net zero for direct emissions in Scope 1 and indirect emissions in Scope 2, since the amount of carbon absorbed by the biomass during the growth phase is equiv- alent to the amount of carbon released during combustion. Biogenic emissions are therefore reported separately. 5) The intensity measure is formulated as GHG emissions per value added with the unit tCO2e/SEK million. Value added is a monetary amount that can be calculated by summing up EBITDA plus personnel costs. Comments on the outcome This year’s outcome shows a stabilisation of emission intensity in the Group as a whole, while improvements were significant in certain operating segments compared with the previous year. At the Group level, total emission intensity decreased by 3 percent to about 37 tCO2e/SEK million compared with the previous year. Compared with the base year 2023, when the emission intensity was about 39 tCO2e/SEK million, the outcome in 2025 was 4 percent improvement. The reduction was due to enhance- ments in the Industry and Services business areas. Industry, the Group’s most emission-intensive business area, showed clear improvement compared with the base year. The emission intensity fell by 12 percent compared with the base year and by 6 percent com- pared with the previous year. The reduction was in the Automation and Product Solutions verticals, where many business units reported lower emissions per krona in sales. The Industrial Technologies vertical reported an emission intensity in line with the previous year. Comments on the outcome Scope 1 – Direct Scope 1 emissions were 31,808 tCO 2e, corresponding to a reduction of 13 percent compared with 2024. Compared with the base year 2023, the level is largely unchanged (an increase of barely 1 percent). The reduction compared with the previous year was due to lower fuel con- sumption and an increased proportion of biofuels in several operations. Parts of Storskogen’s own vehicle fleet have also been electrified, reducing the need for other fuels. The Services business area decreased the most, by 16 percent, compared with the previous year. Trade and Industry also contributed to the reduction. Scope 2 – the Group’s overarching Scope 2 climate impact continued to decrease compared with the previous year, which was a result of energy- saving measures and continued transition in the business units. Market- based Scope 2 emissions were 4,180 tCO2e in 2025, which was a reduction of 47 percent compared with the previous year and a significant reduction compared with the base year 2023. This development was chiefly due to the transition to suppliers of renewable electricity in several of the Group’s operations. Location-based emissions also decreased, albeit at a slower pace, and amounted to 7,978 tCO 2e, corresponding to a reduction of around 3 percent compared with 2024 and a reduction of 14 percent compared with the base year 2023. The positive development in Scope 2 shows that the initiated initiatives in energy efficiency, transition to renew - able energy and electrification of the vehicle fleet in the business units have started to show results. Scope 3 – Storskogen’s main Scope 3 GHG emissions stem from pur- chased goods and services (mainly purchased steel), the use of sold products, and purchased transportation and distribution (mainly road freight). Of the Scope 3 emissions, 35 percent were calculated using primary data from suppliers and business units. The remaining proportion was based on secondary data and standard amounts due to the lack of complete supplier data. Purchased goods and services alone account for 70 percent of total Scope 3 emissions. Almost half of these emissions come from the purchase of materials, namely steel and steel components. Emissions from purchased goods and services increased compared with 2023, due to activities within Industry and Trade. In Trade, emissions for purchased goods increased, primarily due to a greater number of pur- chased goods in most product categories, but also due to method changes in the calculations. In Industry, the increase was primarily due to an improved calculation methodology and ensuing method changes in the calculation of emissions, both between 2023 and 2024 and between 2024 and 2025. The second-largest source of climate emissions in Stor- skogen is the use of sold products. Emissions in this category decreased compared with the previous year, chiefly due to the improved calculation methodology between 2024 and 2025, but also due to a lower number of sold products. Purchased transportation and distribution are Storskogen’s third-largest emission category. Overall, emissions from road transport account for almost 70 percent of emissions in the category. Emissions from road transport were relatively stable between 2024 and 2025. Emissions from air and sea freight decreased compared with the previous year. The reduction in emissions from air freight was due to a business unit reporting consider- ably lower emissions than in the previous year, due to the loss of several major customers in sea and air freight. The reduction in emissions from sea freight was likely due to an error in the reporting for 2024. For road transport and sea freight alike, the impact of incorrectly reported input data was too small to justify a base year adjustment of 2024. The Industry business area accounted for the greatest emissions in Storskogen’s three business areas. The majority of emissions were from purchased products and materials, as well as emissions from the use of sold products. Steel purchased by the business units in Industry accounts for 400,000 tCO 2e during its production, corresponding to 40 percent of Storskogen’s total emissions in this category. The products that generate the highest emissions in use are larger machines used in the processing industry and forestry. In the Trade business area, purchased products account for the majority of the business units’ emissions. The business area buys a great variety of products. Products purchased in large volumes and that generate major emissions when manufactured are products made of textile, steel, alumin- ium and plastic. Emissions in this category rose by 10 percent compared with the base year, which is in line with the business area’s sales growth from 2023 to 2025. Emissions in the Services business area are primarily related to con- struction, purchase of contracting services and road transport. The amount of completed floor space in newly produced buildings varies between years, and as it is an emission-intensive activity, it affects the result in category 3.1. Emissions from completed floor space fell by 35 percent compared with 2024, resulting in a reduction of 17 percent in category 3.1. Nevertheless, emissions in Services in category 3.1 increased slightly, 7 percent, compared with the base year. Just over half of Storskogen’s total emissions from purchased transportation are from a business unit in Services; the reason is that the business unit is a transport company that purchases road transport. Accounting policies As of the 2025 financial year, Storskogen reports according to the EU’s Corporate Sustainability Reporting Directive (CSRD), which means increased transparency, increased data collection and stricter methodol- ogy requirements. Over the year, emission factors were updated, and some business units changed to more detailed reporting. For some business units, emission factors changed, and assumptions and new information were added. This refers chiefly to the use phase for sold products, transport data and steel components, which are now reported by weight. All in all, the changes in methodology are deemed to have affected this year’s result, but the lion’s share of the total emission reduction is consid- ered to be an actual reduction, linked to improvements in the operations. ENVIRONMENTAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 60 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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The Services business area also had a better outcome. The emission intensity decreased from 23 to 21 tCO2e/SEK million between 2024 and 2025. In Business Services, the intensity fell by 18 percent compared with the previous year, while in Infrastructure Services, the intensity rose by 6 percent in the same period. A few business units had a major impact on the increase. In the Trade business area, the emission intensity increased from 31 to 33 tCO2e/SEK million in 2025. The increase was driven by Consumer Products, even if there was great variation between individual business units. The year’s outcome shows that Storskogen’s emission intensity fell in all business areas. Nonetheless, significant variations between business units remain, reflecting the portfolio’s width and the different conditions in industrial, service and trade activities. This may be attributed to the Group’s introduction of harmonised reporting processes, common guidelines and in-depth follow-up, which was key to the year’s positive development. These elements form an important base for continued emission reductions in the value chain. Accounting policies In 2023 and 2024, the base year was adjusted in accordance with Stor- skogen’s recalculation principle due to structural changes regarding divestments of business entities as well as changes in calculation method- ology (due to access to better quality data) and improvements in the accuracy of emission factors. The data quality for climate calculations in Scopes 1 and 2 is generally high. Of the total Scope 1 GHG emissions, about 90 percent (87) are based on actual emissions, and the rest are estimated. Of the Scope 2 GHG emissions, the corresponding proportion of actual data is approximately 77 percent (86). Information on the input data quality in Scope 3 could not be collected previously, but as of 2025, this is possible. Of the Scope 3 GHG emissions that were supplemented by information on data quality (approximately 90 percent of the total Scope 3 emissions), 54 percent were based on actual data, and the remaining portion was esti- mated. The data quality in Scope 3 climate calculations varies depending on the operations and the availability of data in the business units. Some business units have reported detailed activity data, such as purchased products (quantity) and transport work (tonne-kilometre), while others have reported spend for their activities. To enable reporting for all Stor- skogen's business units, a certain amount of flexibility in reporting is required. Therefore, Storskogen has decided on general levels of data quality for different business areas and has enabled different levels of data quality for transport work in both Scopes 1 and 3. There are possible inadequacies in the input data for the years 2023 to 2025. Common mistakes identified over the years include double reporting of transporta- tion in Scope 1 and inaccurate reporting of energy sources in Scope 2. For Scope 3, common errors included incorrect assumptions about weight, reporting in incorrect units (e.g. tonnes instead of kg), incorrectly produced assumptions of tonne-km, double reporting and incomplete reporting. The input data has been validated, and adjustments of the inputs have been made; however, a risk of errors in the input data remains and, conse- quently, in the calculations. Biogenic emissions, tCO2 KPI 2025 2024 2023 Base year Δ from base year (2025) Biogenic emissions, total 16,285 9,950 N/A N/A – Scope 1 6,879 5,282 N/A N/A – Scope 2 4,463 4,668 N/A N/A – Scope 3 4,943 N/A N/A N/A Accounting policies According to the GHG Protocol, carbon dioxide emissions from biomass combustion are net zero for direct emissions in Scope 1 and indirect emissions in Scope 2, since the amount of carbon absorbed by the biomass during the growth phase is equivalent to the amount of carbon released during combustion. Biogenic emissions are therefore reported separately. Biogenic CO2 emissions from the combustion or biodegradation of biomass were calculated for Scope 1 and 2 and are reported separately from Scope 1 and 2 GHG emissions, in accordance with the GHG Protocol guidelines. However, the compilation of biogenic emissions in Scope 3 is incomplete due to inadequate input data and a general difficulty estimat- ing indirect biogenic emissions. Biogenic emissions reported in Scope 3 are based on emission items reported in categories 3.4 and 3.9 related to transportation and distribution. These emissions can be assumed to correspond to a significant portion of Storskogen’s biogenic emissions in Scope 3, but additional combustion of biogenic emissions is assumed to arise in categories 3.1, 3.2, 3.5, 3.6, 3.7, 3.11, 3.12 and 3.13. Description of methodology Climate impact is reported as direct (Scope 1) and indirect (Scope 2 and 3, respectively) GHG emissions in carbon dioxide equivalents, in accordance with the guidelines of the Greenhouse Gas Protocol (GHG Protocol), a well-established and international standard for climate calculations. Storskogen has chosen to apply operational control to determine consoli- dation approach. To make emissions from different greenhouse gases comparable, all emissions except carbon dioxide were multiplied using the Global Warming Potential (GWP) based on a 100-year time horizon (GWP100). The result of the climate impact is described in carbon dioxide equivalents (CO2e), which correspond to all greenhouse gases defined in the GHG protocol. The emission factors used in the calculations were provided by an external climate consultant and come mainly from Ecoinvent, EPD International, IPCC, AIB, IEA, DEFRA, IVL, the Swedish Energy Agency and the Swedish National Agency for Public Procurement. Most of the data refer to the 2025 financial year. Based on the climate calculations for 2024, the emission items accounting for Storskogen’s lowest GHG emissions were excluded from the input data reporting. Taken together, these account for approximately 7 percent of Storskogen’s total emissions. Instead, these emissions were based on inputs reported for the 2024 financial year and scaled according to the business units’ changed net sales between 2024 and 2025. For other calculations, individual business units within the Group may have extrapolated or estimated data for certain months or the whole year, in the absence of actual data. For the 2023, 2024 and 2025 calculations, Storskogen enlisted the help of an external climate consultant to implement the calculations, and input data were collected via the Worldfavor platform. Reported data are divided into actual and estimated data for Scope 1 and 2, and for previous years, and for Scope 3, as of 2025. Base year recalculation Storskogen has adopted climate targets according to the Science Based Targets initiative for absolute reductions of greenhouse gases for Scope 1 and 2 and reduction of emission intensity per value added for Scope 3. Storskogen has set a base year to enable comparison of GHG emissions and for monitoring developments. On some occasions, these base year emissions may need to be recalculated to ensure meaningful and relevant comparisons over time. Storskogen has established the principles for recalculation and updating of historical climate data for Storskogen and its business units in accordance with the GHG Protocol guidelines. Base year emissions and historical figures will be recalculated in the event any of the following occurs: structural changes in acquisitions and divestments of companies; changes in calculation methodology or improvements in the accuracy of emission factors or activity data that result in a significant impact on the base year emissions data; detection of significant errors or a number of cumulative errors that together are significant. Organic growth or decreases do not trigger a recalculation of the base year. Years affected by the recalculation principle are as follows: Current year (N); Comparison year (N-1); Base year. Scope 1 Scope 1 includes direct GHG emissions from company-owned and leased passenger cars, vans, trucks, machinery, forklifts, tractors and other fuel- powered equipment. In the cases where no consumption data were available, the calculations were based on the number of kilometres driven. Scope 1 also includes fuel consumption in the business operations, such as for vehicles or heating, and refrigerant leakage. Scope 2 Scope 2 includes purchased electricity, district heating and district cooling consumed in owned, leased or rented premises as well as purchased electricity for charging electric cars. The calculations are based on the amount of energy purchased, kilometres transported, or estimates based on the size of the premises. Scope 2 is reported according to the market- based method. This ensures that the types of energy associated with purchased certificates for the cancellation of Guarantees of Origin are taken into account. In cases where the origin of electricity cannot be stated, the GHG emissions are calculated with an emission factor for the residual mix for each country. The exception to this method is external charging of electric cars, which is calculated using an average mix, as this is assumed to be most representative of the charging that takes place. ENVIRONMENTAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 61 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Scope 3 Scope 3 is divided into upstream categories (1–8) and downstream categories (9–15). Of these categories, 12 were identified as relevant for the calculation of GHG emissions in Storskogen’s operations. GHG emissions from the remaining three categories (8. “Upstream leased assets,” 14. “Franchises” and 15. “Investments”) have limited relevance in relation to Storskogen’s total climate impact or lack a link to Storskogen’s business operations. Scope 3 covers indirect GHG emissions in the value chain. In Storskogen’s operations, they mainly emanate from purchased materials and products, transportation and freight from suppliers and/or to customers and from the use of sold products. The calculations were largely based on primary data collected by the business units. However, for certain categories, standardised estimates were used. The following paragraphs describe how the calculations were made in each Scope 3 category. 1. Purchased goods and services: Includes upstream emissions from the production of purchased goods and services. Data has been collected into predefined product and service categories with the aim of covering all relevant emission sources. Data for goods is reported in actual GHG emissions, weight, quantity or cost. Data for services are reported as cost. Each category has an associated emission factor (in some cases, including assumptions) developed by an external climate consultant with assistance from Storskogen and its business units. Depending on the breadth of the product category and the availability of factors; to some extent, factors for similar products are used if specific factors are unavailable. 2. Capital goods: Includes upstream emissions from the production of products, machinery or other investments that are depreciated in a company’s income statement. The total cost of capital goods is reported in spend in several predefined purchasing categories. Average spend emission factors were used to calculate GHG emissions for the purchases in each category. 3. Fuel and energy-related activities: Includes all upstream GHG emis- sions from purchased fuels and energy (in addition to those reported in Scope 1 and 2). For example, this refers to emissions during the extrac- tion, production and transportation of fuels and emissions from the energy production of electricity, district heating and district cooling. The calculations are based on inputs reported for Scope 1 and 2. 4. Upstream transportation and distribution: Includes all purchased transportation and distribution for the following modes of transport: air, rail, sea and road. Data can be reported in different units; actual GHG emissions, weight and distance transported, fuel cost or total cost. To calculate the GHG emissions, emission factors for each mode of transport were used. In cases where transportation and distribution are included in the cost of purchased products and services in Category 1 and cannot be separated from the total cost, GHG emissions from trans- ports are calculated as Category 1 emissions. Upstream transportation not paid by the business units should really be included in this category. However, to facilitate data collection, all transportation not purchased upstream and downstream was aggregated and reported in category 9, “Downstream transportation and distribution.” 5. Waste generated in operations: Covers waste generated in the Com- pany’s own operations, both on its own premises and external locations. Data are reported by weight, divided between different categories of waste. To calculate the GHG emissions, emission factors for each type of waste were used. 6. Business travel: Includes business travel but excludes business travel by car reported in Scope 1. The calculation is based on the number of employees in each business unit and standard rates for the average number of business trips carried out by citizens within the EU. The standard rates are based on input data from Eurostat that include statistics on the number of business trips carried out in the EU for different modes of transport, the GHG emissions of which were calcu- lated with an emission factor for each mode of transport. 7. Employee commuting: Includes employee commuting to and from work. The calculation is based on the number of employees in each business unit and a standard for the average commuting distance per person per day in Sweden from the Swedish government agency Transport Analysis. The standard is applied to all geographical areas and includes journeys made by car, public transport, on foot or by bicycle, the GHG emissions of which are calculated using the emission factor for each mode of transport. 9. Downstream transportation and distribution: Includes downstream transportation and distribution of sold products not purchased by the business units. Downstream transportation purchased by the business units is included in Category 4, “Upstream transportation and distribu- tion”, pursuant to the GHG Protocol guidelines. Transportation in this category refers to the modes of transport air, sea or road. Rail has been excluded from the calculation, as this mode of transport is used very little and has a low climate impact per route. Downstream transporta- tion and distribution primarily include transportation from the business units’ operations to the next recipient. There are likely more downstream transports beyond Storskogen’s control, but these have been excluded, as they are difficult to measure and follow up on and are considered negligible in relation to Storskogen’s total climate impact. The calcula- tion also includes upstream transportation not paid by the business units, as they could not be separated from downstream transports not purchased. The calculations are based on the business units’ estimates of transported weight and distance expressed in tonne-kilometres per mode of transport, the GHG emissions of which are calculated using the emission factor for each mode of transport. 10. Processing of sold products: Includes energy consumption associated with the treatment, refinement and processing of sold products after sale to third parties. The calculations are based on the reported number of products sold and the business units’ own estimates of energy consumption during processing, the GHG emissions of which were calculated using the emission factor for each energy type. Products with known or assumed low energy consumption during further processing were excluded from the calculations, as such processing is assumed to have a small climate impact in comparison with Storskogen’s total GHG emissions. 11. Use of sold products: Includes energy use from the use of products sold, in terms of energy and fuel use, and the use of refrigerants. These calculations are based on the number of sold products and assump- tions regarding the product’s energy consumption. The assumptions refer to the products’ total energy consumption during their lifetimes and the geographical markets to which the products are sold. GHG emissions were calculated using emission factors for each activity. For business units in the Trade business area, the number of products sold is assumed to correspond to the number of products purchased in the same year, and the calculations are therefore based on reported purchased products. Products with a known or assumed low energy use during use were excluded from the calculations, as this use is assumed to have a minor climate impact in comparison with Storskogen’s total GHG emissions. 12. End-of-life treatment of sold products: Includes waste treatment of sold products after the user has consumed the product. The calcula- tions are based on the purchases reported as purchased goods and the weight of the purchased material or product. The weight of the total purchases is assumed to correspond to the total weight of the sold products. In cases where purchases were reported as the number of products, an average weight per product was produced, either based on the business units’ own estimates or through assumptions. In cases where products are reported as a cost, the weight is estimated per krona. The total reported weight was calculated using a weight-based emission factor for waste treatment, using the assumption that the products are subject to recycling or energy recovery (energy recovery refers to waste incineration where the heat is recovered for energy or heating). 13. Downstream leased assets: Includes assets leased to other companies, the energy consumption of which is not included in Scope 1 or 2. The calculation is based on the business unit’s net sales from the business that rents out equipment, and the GHG emissions from the energy consumption from the use of the equipment are based on a spend factor. Changes in methodologies 1. Simplifieddata collection: To focus the reporting on Storskogen’s material emissions and facilitate the business units’ data collection, several business units were excluded, wholly or in part, from the report- ing of data for 2025. Also, several previous datapoints were excluded from the reporting of data. Taken together, the exclusions correspond to 7 percent of Storskogen’s total GHG emissions in 2024. To keep including these emissions in the calculations, these business units and datapoints were scaled based on the changed net sales between years. 2. Updating of emission factors: In the 2025 calculations, most emission factors for the calculation of emission in category 3.1 “Purchased goods and services” were updated to use the most recently updated sources. For most emission sources, this impact is small, but for some emission sources, the impact is greater. No base year recalculations were required for these changes. ENVIRONMENTAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 62 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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3. Purchased goods and services: It was previously only possible to report steel components as costs, but as of 2025, these are also reported in weight. The purpose of the update is to improve the quality of the inputs, thus improving accuracy when calculating GHG emissions. No base year recalculations were required for these changes. 4. Use of sold products: Assumptions and emission factors used to calculate GHG emissions for sold products were updated in the 2025 calculations. The reason was that most business units contributed additional knowledge of the products’ energy consumption during their lifetimes and the markets to which the products are sold. The products included in the adjustment are products with material GHG emissions in the use phase in the Industry and Trade business areas. The calculations were affected by adjustments of the number of days in use per year, which affects the total energy consumption, and the distribution of markets that affect the choice of emission factor for electricity. The improved calculation method has a significant impact on the calcula- tions for 2025 compared with the base year and therefore resulted in a recalculation of the base year for several business units. 5. End-of-life treatment of sold products: The input data for weights of purchased materials were inadequate in previous years. Reported emissions previously corresponded to the purchases that were reported in weight and the parts of the purchases that were reported in quantities. Standard amounts were used for other purchases that lacked an average weight and products that lacked an assumed weight. Due to the improved methodology in 2025, weights were supplemented for purchases reported in quantities and costs, which means that all purchased goods (category 3.1) have an assumed weight. This change in methodologies resulted in a 0.2 percent increase in GHG emissions (4,500 tCO 2e) compared with the base year 2023. Consequently, no adjustment of the base year was made due to the change in method o logies. E1-7, E1-8 Carbon offsetting and internal carbon pricing Storskogen does not participate in activities related to car- bon o ffsetting o r c ertificates. S torskogen d oes n ot c urrently have any internal carbon pricing at the Group level, but Storskogen plans to introduce internal carbon pricing and carbon offsetting from 2030. E1-9 Financial effects from climate-related risks and opportunities As Storskogen applies phase-in, no quantitative information is p rovided f or 2 025. T his i s c hiefly b ecause e ffects v ary between business units, that several effects arise indirectly in the supply or customer chains, and that the collection of data required to make an aggregated assessment is under development. The efforts to analyse and eventually quantify expected financial effects have been initiated. Storskogen focuses on: • Identifying potential cost items linked to material risks (such as increased purchasing costs, climate-adaptation investments, operational disturbances). • Developing scenario models to highlight effects for various emission trajectories and regulatory levels. • Integrating climate-related risk assessments in the financial planning at the Group level. In 2026, an evaluation of the chart of accounts and related data processes is planned. The aim is that from 2027, a complete q uantification o f i nvestments i n b usiness u nits with transition plans is to be performed, with annual revalu- ations of materiality. ENVIRONMENTAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 63 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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E5 Resource use and circular economy Introduction to the matter Resource efficiency and reduced waste are integrated elements of Storskogen’s initiatives to meet the Group’s cli- mate targets. Through the Group-wide Scope 3 reporting, data relevant to resource use is collected (Category 1 Pur- chased goods) and waste (Category 5 Waste). Circular economy is material to several business units, particularly in the Industry and Trade business areas, where material flows are significant. In light of the Group’s decen- tralised structure, where the businesses are active in various industries and geographical areas, governance in this area is at the business unit level. Each business unit is responsible for adopting relevant targets and actions related to resource efficiency and circularity, thus contributing to the Group’s overarching climate and sustainability targets. Material impacts, risks and opportunities The table below presents Storskogen’s material impacts and r isks r elated t o r esource u se a nd c ircular e conomy. N o Group-wide m aterial o pportunities w ere i dentified f or S tor- skogen. N evertheless, t here a re s everal s ignificant o pportu- nities at the business unit level, such as increased demand for p roducts a nd s ervices t hat c ontribute t o r esource e ffi- ciency, c ircular m aterial fl ows a nd s ustainable p ackaging solutions. Material impacts, risks and opportunities related to resource use and circular economy IRO Type Description Resource use Across the value chain Actual negative impact Resource u se i n l inear fl ows drives waste and emissions in Scope 3. Raw materials shortages Upstream Own operations Transition risk The transition to a sustainable economy may increase the demand for critical raw mate- rials and components. In linear value chains, resource use often results in incre- ased amounts of waste and higher emissions in Scope 3. A significant part of Storskogen’s climate impact is from purchased materials and products, primarily in the extraction and manufacturing stages, where energy- intensive processes and the use of raw materials cause GHG emissions. Purchased steel accounts for 32 percent of total Scope 3 emissions. Consequently, more circular resource use and more effective material flows constitute important conditions for reducing waste and climate impact in the value chain. The transition to a more sustainable and resource-efficient economy may increase the demand for certain critical raw materials and components, leading to the risk of inadequate resources, price increases and production disturbances. This may lead to increased operating costs, delays in the supply chain and increased product development and material substitution costs. The risk primarily affects business units that are dependent on metals and other input goods. E5-1 Policies The Group’s common policy framework sets expectations on e fficient r esource u se, r educed w aste a nd c ompliance i n the Group’s own operations and the supply chain alike. The framework that governs the initiatives related to circular economy and resource use comprises three policies: • Sustainability Policy – describes undertakings to promote a circular economy by using resources efficiently, reducing waste and promoting recycling and reuse. It addresses the use of sustainable materials and improved waste streams in Storskogen’s operations and throughout the value chain. • Supplier Code of Conduct – requires suppliers to reduce their environmental impact actively through efficient resource use, waste reduction and the promotion of recycling and reuse. Suppliers are expected to comply with applicable environmental legislation, strive to opti- mise material flows and use resources in a manner that supports circular and sustainable production methods. • Code of Conduct – clarifies that all employees in the Group shall contribute to responsible and efficient use of resources. The Code emphasises the importance of preventing unnecessary waste, using materials sustain- ably and constantly striving to reduce the environmental impact that arises in the daily operations. F or more information about Storskogen’s policies, see p. 52. E5-2 Actions Each business unit is responsible for identifying and taking relevant a ctions b ased o n i ts o perations, m aterial fl ows a nd environmental impact. These initiatives involve applying cir- cular design principles, increasing reuse and recycling of materials, and improving waste management to avoid landfill. Several business units have implemented initiatives that contribute to reducing resource use and increasing circular- ity. These initiatives include more efficient packaging solu- tions through adjusted product and packaging dimensions, optimised pallet use and transitioning to thinner stretch film. Other actions include the sale of used products, the use of recycled materials in new product series and groupage of goods. These initiatives contribute to reducing the use of materi- als, reducing waste and increasing resource efficiency and to meeting the Group’s climate targets. At the Group level, flows of resources and waste are mapped through the business units’ Scope 3 reporting, which makes it possible to follow up on progress and links to the overarching climate targets. Storskogen supports the business units’ work by providing tools, training and guid- ance on upcoming EU legislation, such as the EU Deforesta- tion Directive (EUDR) and the Packaging and Packaging Waste Regulation (PPWR). Resource efficiency and circular economy is an area where Storskogen is still in an early phase, and efforts are ongoing step by step to develop and implement further relevant measures. ENVIRONMENTAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 64 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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E5-3 Targets At p resent, t here i s i nsufficient c omparable d ata t o a dopt and follow up on a separate Group-wide target for resource use a nd c ircular e conomy. N evertheless, r esource u se i s a n important driver of other environmental impact areas, such as climate impact. This means that, in practice, Storskogen’s initiatives related to resource use and the reporting of Scope 3 emissions are closely linked. Storskogen's chosen approach includes linking priorities related to resource use and circular economy to the Group’s Scope 3 climate tar- gets. A deeper review of resource use and circular economy is planned in 2026 to determine the long-term manage- ment in the Group. The review will include target structure, responsibilities and data collection. Consequently, Storskogen did not adopt any Group-wide targets for resource use and waste for 2025. However, target fulfilment is monitored indirectly through the Group’s climate targets, where purchased steel and other metals constitute the majority of emissions in Scope 3, Category 1. Target- setting is instead carried out at business unit level, where resource use and circularity are considered material. This allows for effective management and follow-up where impacts arise and can be dealt with directly. Metrics Storskogen d oes n ot h ave a s ufficient b asis f or r eporting pursuant t o E 5-4 ( Resource i nflows) a nd E 5-5 ( Resource outflows), n or h as i t b een c onsidered m aterial t o c onsoli- date this information at the Group level. However, it was considered material to follow up the resource use linked to purchased steel and other metals based on data for Scope 3, Category 1 at the Group level. As regards waste, only total waste is reported, based on data in Scope 3, category 5. Steel and other metals account for 33 percent of total Scope 3 emissions and 47 percent of emissions in Scope 3, category 1. For other materials, such as plastic, wood and cardboard, there is insufficient data at the Group level at present to make a robust and quantitative assessment of the materials that are relevant for resource use and circular economy. The matter will be considered in the updated double materiality assessment in 2026 with the aim of enhancing data collec- tion and assessment of the use of materials and allowing for more well-founded assessments. The effectiveness of policies and actions is evaluated based on the business units’ target fulfilment, resource effi- ciency over time and the progress of each transition plan. Read more about Storskogen’s transition plans on p. 55. At the Group level, developments are monitored qualita- tively through the business units’ reporting of progress, initi- atives and results related to circularity, resource efficiency and waste reduction. Developments are also monitored indirectly through the business units’ reporting and status in the transition plans. Materiality is reassessed annually, and the reporting is scaled up when justified by data quality and decision usefulness. Material inflow and waste (Scope 3), tonnes KPI 2025 2024 Change, % Material inflow – steel 160,862 161,722 –1% Material inflow – other metals 29,672 27,297 9% Total waste 316,186 341,989 –8% Accounting policies Storskogen has started to map material inflow. Steel and other metals have been identified as material based on a climate perspective. The input data for these flows are considered to be of good quality. In certain cases, purchased materials are reported by weight. However, in such cases, data that were originally reported by quantity or spend had to be converted. Such conversions were based on assump- tions regarding the weight, average cost and proportion of steel and other metals in the products. Accordingly, the amounts of materials reported in the table are an estimate of Storskogen’s material inflow. The amount of total waste was based on input data from the business units’ reporting for 2024, which was adjusted for the calculations for 2025, based on changes in the business units’ sales. E5-6 Financial effects of risks related to resources and circular flows As t he c onditions f or r obust q uantification o f fi nancial r isks are not yet in place, in part due to the complexity in obtain- ing reliable data, a qualitative assessment is provided for 2025. The main potential financial effects of the identified risks relate to increased costs of input goods and intermediate products, reduced revenue due to production cutbacks, increased costs for waste management and compliance and investments in the transition of products and materials. Costs for developing new products and solutions are also expected to arise when materials are replaced or designs are adapted to meet circularity requirements. Quantification occurs at the business unit level, where the impact is deemed material. The assessment is updated annually as data maturity increases and regulatory changes occur. Delivery disruptions may occur due to shortages of critical materials or logistics chain limitations, potentially affecting production rates and, ultimately, revenue levels. The cost of waste management and producer responsibility is expected to rise due to new EU requirements and national fees. Com- pliance costs are chiefly related to the implementation of future rules and regulations, such as the Packaging and Packaging Waste Regulation (PPWR) and the Waste Frame- work Directive (WFD). The effects may arise in the short-term to medium-term (1 to 5 years) in connection with new regulatory require- ments and changed market conditions. In the long-term (up to 10 years), the transition to more circular flows of materials is expected to entail increased investment requirements, but also long-term gains in the form of increased resource effi- ciency and reduced financial vulnerability associated with the cost of materials. ENVIRONMENTAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 65 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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S1 Own workforce Introduction to the matter Storskogen’s employees are the Group’s most important resource and key to the Group’s long-term success. By offering a safe, fair and stimulating work environment, conditions for commitment, productivity and sustainable growth are created. The Group is primarily active in the Nordic region, the DACH region (Germany, Switzerland and Austria) and the United Kingdom, where strong legislation supports good and safe working conditions. Due to Storskogen’s decentralised struc- ture, with operations in various industries and geographical markets, the area is governed both at the Group and busi- ness unit levels. At the Group level, a common approach is established through governance documents, guiding principles, mini- mum requirements and regular follow-up by the boards of the business units. Storskogen is committed to promoting social justice, safety and wellbeing throughout the Group by: • Ensuring fair and safe working conditions, and • Respecting and protecting human rights in all parts of the operations. Material impacts, risks and opportunities The work environment and working conditions have been identified a s m aterial i mpacts a t t he G roup l evel. W ork e nvi- ronment issues relate to both actual impacts in the form of accidents and potential impacts, as additional incidents may o ccur u nless p reventive m easures a re t aken. N o m ate- rial o pportunities h ave b een i dentified c entrally, b ut s everal business u nits h ave i dentified o pportunities r elated t o improved w orking c onditions. N o i mpacts o r r isks r elated t o Storskogen’s own workforce have been noted in connection with the Group’s climate transition plan. Material impacts related to Storskogen’s own workforce IRO Type Description Work environment and working conditions Own operations Actual negative impact The work environment and working conditions have a direct impact on employee health. At Storskogen, work environment and working conditions have a direct impact on employee health, commitment and long-term e mployability. N egative i mpacts m ay a rise through work-related ill health, accidents and inadequate working conditions, which may, in turn, affect productivity and wellbeing. The impact is greatest in business units with practical and operational work, where physical risks and repetitive strain injuries are more common, particularly in installation, manufacturing, construction, logistics and distribution in the Services and Industry business areas. Insufficient gender equality and representation, especially in management positions, may also have an adverse impact on motivation, workplace atmosphere and the busi- ness units’ attractiveness as employers. Typical risks related to Storskogen’s own workforce chiefly relate to workplace accidents, psychosocial stress, high employee turnover and low commitment, which may cause operational disturbances and increased costs. Employees in physically demanding or seasonal operations are particu- larly vulnerable. There are also certain risks related to insuffi- cient gender equality and representation that may affect commitment and attractiveness. Risks related to forced labour, child labour and other forms of exploitation have been considered but are not deemed material at the Group level. A more systematic due diligence process is being developed to improve follow-up in these areas. Opportunities relate to proactive efforts related to gender equality, health and safety and the work environment, which improve the attractiveness as an employer and contribute to improved satisfaction, loyalty and productivity. Phase-in Storskogen has opted to phase in the disclosure require- ment S 1-7, N on-employee w orkers i n t he u ndertaking’s o wn workforce, and does therefore not report on this require- ment in 2025. The existence of non-employee workers varies considerably between business units and countries, result- ing in low comparability at the Group level. Such workers are currently managed locally, based on operational require- ments and applicable legislation. Such variations complicate appropriate and comparable reporting. A more profound analysis and assessment of the significance and future reporting on non-employee workers will be performed in 2026. Non-material subtopics in S1 Some subtopics in ESRS S1 were not deemed material. The assessment is based on the fact that these areas vary con- siderably between countries, industries and business units, thus limiting the possibility of comparable and decision- relevant reporting centrally. Instead, these subtopics are managed locally in each business unit, in accordance with national legislation and industry practices. Non-material subtopics: • S1-8 Collective bargaining coverage and social dialogue – Due to country-specific variations, central reporting is less meaningful. Collective bargaining cover- age and social dialogue are followed up locally according to national legislation and industry practices. • S1-10 Adequate wages – Salary levels and purchasing power vary considerably between countries, making local analyses more relevant than a Group-wide average. • S1-11 Social protection – Social insurance systems vary considerably between countries, making local analyses more meaningful. Each business unit is responsible for ensuring compliance with statutory protection. Social information SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 66 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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• S1-12 Persons with disabilities – Data is not reported centrally for privacy and data reasons. However, local initiatives may be implemented in relevant business units to promote inclusion. • S1-13 Training and skills development – Definitions, follow- up methods and content differ significantly between business units, and the cost of harmonisation is deemed to exceed the benefits. Consequently, training and skills development are managed by each business unit. • S1-15 Work-life balance – Practices, KPIs and legislation vary between service companies and industrial compa- nies, resulting in low comparability. Consequently, these issues are managed locally. • S1-16 Pay gap – Differences in currencies, remuneration structures and legal frameworks make central reporting less meaningful. Fair remuneration is ensured through local reviews. Ahead of future statutory requirements related to the Pay Transparency Directive, Storskogen has ensured that the job architecture and equal value assessments are consistent with future statutory requirements and clarified its salary criteria. To support the business units, a framework agreement have been concluded with a supplier that will assist with salary mapping. Training on the Pay Transparency Directive has also been made available on Storskogen’s common Knowledge Exchange platform (KX). S1-1 Policies Storskogen’s policy framework underpins the Group’s efforts to ensure responsible working conditions and a safe, fair and stimulating work environment for all employees. In its human rights efforts, Storskogen complies with and is guided b y t he f rameworks e stablished b y t he U N G uiding Principles on Business and Human Rights, the International Labour Organization’s core conventions and the OECD Guidelines for Multinational Enterprises. The following poli- cies address issues related to Storskogen’s own workforce: • Code of Conduct – provides minimum requirements for the protection of labour rights, fair working conditions and zero tolerance for discrimination, harassment and reprisals. The policy promotes respect for human rights and ensures that Storskogen conducts its operations in a socially responsible manner in accordance with international guidelines. The Code of Conduct applies to all employees and clarifies the conduct and values that are expected throughout the Group. • Gender Equality and Diversity Policy – ensures equal opportunities and fair treatment regardless of gender, age, ethnicity, religion, disability, sexual orientation or any other personal characteristics. The policy supports inclusive procedures for recruitment, promotion and salary setting. • Work Environment Policy – aims to ensure a safe, healthy and risk-aware workplace through systematic risk identi- fication, preventive measures and incident management. The policy addresses both physical and psychosocial working conditions. • Whistleblowing Policy – offers a secure and anonymous channel where employees can report concerns or suspicions, including potential human rights violations, harassment or unethical conduct. The policy guarantees protection against reprisals for anyone making a report, and it ensures that these matters are addressed accord- ing to the established procedure. These policies apply throughout the Group, and compliance is monitored through local controls, training statistics and matter statistics related to human rights, health and safety, and reported whistleblowing cases. Deviations are handled at the business unit level and reported to the business unit boards. F or more information about Storskogen’s policies, see p. 52. S1-2 Procedures for contact with Storskogen’s own workforce In Storskogen’s central organisation, a continuous dialogue is maintained with the employees through recurring employee s urveys p ursuant t o e NPS ( employee N et P ro- moter Score), performance reviews and regular follow-ups between managers and their teams. At the business unit level, the dialogue is local and adapted to the size and structure of the operations. The result of these processes is reported to the board of each business unit. The dialogue aims to capture views, identify areas of improvement and contribute to consideration of employee perspectives in decisions, policies and activities, both at the Group and business unit levels. The effectiveness of the engagement processes is meas- ured using several methods, including response rate and employee survey results, recurring performance reviews and the development of and follow-up on action plans based on feedback from surveys and meetings. Over the year, the eNPS survey in the central organisation had a response rate of 69.5 percent, and employee engagement was measured to 4.25 (out of 5). The Head of Sustainability and the Head of HR are jointly responsible for Storskogen’s employee engagement pro- cesses and their continuous development in line with Stor- skogen’s goals. An initiative to strengthen Storskogen’s stakeholder dialogue, with increased focus on the employee dialogue, will be introduced in 2026. The purpose is to increase participation through a more structured, uniform process for collecting and using employee perspectives in decision-making. In parallel, Storskogen’s due diligence pro- cess focusing on human rights, working conditions, business conduct and the environment is being developed. The pos- sibility of introducing a Global Framework Agreement to increase the Group’s human rights initiatives is also under evaluation. S1-3 Channels to raise concerns Storskogen provides a Group-wide whistleblowing service that enables employees and other stakeholders to report suspected irregularities or serious grievances in work- related contexts. The aim is to identify and manage poten- tial risks early on and promote good corporate governance, good business conduct and a safe work environment. The reporting channel can be used to report suspected violations of laws, internal policies or ethical guidelines, such as corruption, discrimination, work environment flaws, envi- SOCIAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 67 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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ronmental offences or breaches of privacy. Issues related to general dissatisfaction or individual work-related disputes are instead handled through regular HR processes and dialogues with line managers. To guarantee anonymity, confidentiality and impartial treatment of the reports received, the whistleblowing service is operated by an external, independent party (WhistleB). Reports can be made in writing, orally or through a physical meeting, if requested. Only authorised individuals in the Storskogen Group (the General Counsel, the Head of HR and the CFO) and designated representatives in affected busi- ness units have access to the reports received. Matters are confirmed within seven days, and feedback is provided within three months, in accordance with the EU Whistleblow- ing Directive and the Swedish Whistleblowing Act. Whistle- blowers are protected against reprisals, discrimination and other negative consequences for providing a report in good faith. All messages are treated confidentially and in accord- ance with the GDPR. Business units with more than 250 employees must estab- lish their own whistleblowing channels, while other business units are covered by the Group-wide function. F or further information: report.whistleb.com/storskogen S1-4 Actions Work e nvironment a nd w orking c onditions h ave a d irect impact on employee health, commitment and long-term employability. T o c ounteract i dentified n egative i mpacts, Storskogen is taking action in the following areas: Secure and fair working conditions To prevent negative effects associated with insecure employment and unequal terms, Storskogen ensures that the terms of employment are consistent with applicable collective bargaining agreements and industry standards. This i ncludes f air w ages, p ensions a nd s ocial b enefits according to national legislation. Flexible forms of working, such as the possibility of working from home, promote a good work-life balance and contribute to mitigating risks of stress and ill health. Occupational health and safety In business units with physically demanding jobs and increased h ealth a nd s afety r isks, t he G roup’s W ork E nviron- ment Policy and local health and safety policies apply. Through c ertifications s uch a s I SO 4 5001, s ystematic r isk assessments and preventive measures, the risk of accidents and w ork-related i ll-health i s r educed. T he n umber o f c ertified business units is followed up centrally to measure progress. Equal treatment and opportunities To manage the negative impact associated with gender inequality and inadequate representation, salary reviews (either statutory or initiated by the business units) are con- ducted to identify and remedy unreasonable differences. Diversity and gender equality are integrated in recruitment and promotions, and the number of business units that adopt their own gender equality targets is monitored. The right to union representation and freedom of association are respected, and the risk of discrimination, forced labour and child labour is counteracted through the Group’s Code of Conduct and requirements on suppliers. Training and skills development To reduce risks associated with inadequate skills or safety procedures, a culture of continuous learning is encouraged. The central organisation provides common methods and training that are used by the business units, in combination with the results from employee surveys and work environ- ment and incident reporting, to direct preventive action to the areas with the highest risk levels. The boards of the busi- ness units follow up on these results regularly. Regular risk assessments, employee surveys and follow- up by the business unit boards ensure that the measures taken do not cause or contribute to negative impacts on employees. Resources to manage impacts related to the work envi- ronment and working conditions are integrated into Stor- skogen’s HR and sustainability organisation. The central function is responsible for common guidelines, training and follow up, while the business units allocate resources of their own to local initiatives and work environment management. S1-5 Target As part of the overarching gender equality initiatives, the Group has an established gender distribution target of 40–60 percent among employees in senior roles in the cen- tral organisation and the people appointed by Storskogen to business units’ boards. In addition to these targets, Storskogen introduced new Group-wide targets in 2025: • All business units shall adopt gender equality targets • Employee turnover at the industry average level • Sick leave at the industry average level • Lost time injury frequency rate (LTIFR) at the industry average level • Zero tolerance for serious human rights violations These t argets r eflect t he G roup’s a mbition t o e nsure f air a nd safe working conditions and to respect and protect human rights throughout the organisation. Outcomes related to targets linked to industry averages are evaluated internally and followed up on the board of each business unit. Metrics The following tables show Storskogen’s key metrics in the areas of employees, diversity, health and safety and human rights. The metrics for employees, diversity, health and safety and human rights are consolidated. Data are primarily collected from the Group’s HR system, data reported by the business units and information from the Group’s whistleblowing channel. Other metrics and targets are managed at the business unit level, as they are not considered relevant for decisions or comparable at the Group level. SOCIAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 68 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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S1-6 Information on employees Characteristics of Storskogen’s employees KPI 2025 2024 Average number of employees over the year, total 9,837 10,250 Number of employees at year-end, total 10,417 10,792 - Proportion of women, % 25% 28% - Proportion of men, % 75% 72% Number of employees at year-end, Sweden 5,183 5,272 - Proportion of women, % 24% 25% - Proportion of men, % 76% 75% Number of employees at year-end, UK 1,134 1,095 - Proportion of women, % 14% 13% - Proportion of men, % 86% 87% Number of employees at year-end, Germany 960 1,013 - Proportion of women, % 21% 21% - Proportion of men, % 79% 79% Employee turnover (annual), % 17% N/A Number of employees who have left, at year-end 1,432 N/A Comments on the outcome Compared with the previous year, the number of employees decreased, primarily due to business units that were divested during the year. The decrease in the proportion of women was also due to divestments made. Employee turnover and the number of employees who have left are new key metrics in the reporting in 2025, so no comparative figures are availa- ble. Employee turnover was 17 percent over the year, chiefly due to the employee structure in certain business units in the Group. The outcome mainly reflects the proportion of temporary employment and imple- mented operational and cost adjustments made over the year. Accounting principles and scope The reporting covers the Group’s own employees, i.e. employees directly employed by Storskogen and its business units. The number of employees at year-end was also reported separately for Sweden, Germany and the UK, each of which represents at least 9 percent of the total number of employees. There is no information on self-employed or third-party employees. There are no non-guaranteed hours employees in the central organisation. The total number of employees has been stated as both the number of individuals at year-end and the average number of employees during the year. The proportion of women and men is calculated based on the number of employees at year-end. Employee turnover refers to business units with an average number of employees during the year of more than 50, which covers 84 percent of the total average number of employees during the year. This selection is deemed to reflect Storskogen’s total employee turnover. Storskogen’s employee turnover is calculated by dividing the total number of employees who left the organisation during the stated period by the average number of employees during the year. Turnover includes all job changes, whether due to dismissal, retirement, transfer of work, temporary employment or death. Information on the number of employees is also available in the financial statements on p. 104. Deviations compared with the financial reporting are due to the exclusion of acquired and divested business units in 2025, in accordance with applied accounting principles for the sustainability reporting. S1-9 Diversity metrics Diversity in Storskogen’s management and boards KPI 2025 2024 Number of people in Group Board of Directors 5 5 - Proportion of women, % 40% 40% - Proportion of men, % 60% 60% Number of people in Group management 8 8 - Proportion of women, % 25% 25% - Proportion of men, % 75% 75% Number of people in senior roles, Storskogen’s central organisation 29 31 - Proportion of women, % 45% 41% - Proportion of men, % 55% 59% Number of members appointed by Storskogen to the boards of the business units 307 419 - Proportion of women, % 28% 27% - Proportion of men, % 72% 73% Number of business unit CEOs 111 116 - Proportion of women, % 14% 11% - Proportion of men, % 86% 89% Proportion of business units with gender equality targets 75% 36% Comments on the outcome A majority of the KPIs show a positive outcome. The proportion of female CEOs in the business units, the proportion of women in senior positions in the central organisation, and the proportion of female board members in the business units all increased. The proportion of business units with gender equality targets grew significantly, which was due to initiatives during the year aimed at ensuring that all business units adopt gender equality targets. In addition to the reported outcome, several business units stated that they are in the process of establishing targets. Accounting policies Senior roles refer to individuals who report to a member of management and/or have many years of experience in the position. All business units that reported that they had adopted gender equality targets were included in the final item regarding gender equality targets. No assessment was made of the targets adopted. Age distribution is not reported, as it is considered non-material. Number of members appointed by Storskogen This figure includes Storskogen’s employees who serve on boards as members or deputies, but also external individuals, such as CEOs from other Storskogen companies. The reporting refers to the parent company in the business unit. This definition is based on Storskogen’s ability to influence and the resulting outcome. The Chairman of the board is always appointed by Storskogen, as are the majority of board members. S1-14 Work environment Health and safety at Storskogen KPI 2025 2024 Number of work-related fatalities, own workforce 0 0 Number of work-related fatalities, other workforce 0 N/A Number of serious work-related accidents 80 83 Lost time injury frequency rate (LTIFR) 4.24 N/A Number of days lost 3,089 N/A Sick leave - short-term sick leave 5.17 N/A - long-term sick leave 5.10 N/A Proportion covered by a management system 28% 23% Comments on the outcome The number of serious work-related injuries decreased by 4 percent compared with the previous year. There is some uncertainty in the reported data, as the national legislation and practices for reporting injuries and accidents differ between countries. This causes uncertainty regarding what should be classified as a serious injury from a Group perspective and also affects comparability over time. Storskogen intends to provide training to business units and review whether it is possible to clarify the definition of serious injuries for the next reporting period. The Industry business area had the highest number of serious work-related accidents. The business area works in a structured, proactive way to identify safety risks and encourages employees to identify risks at work before any accident occurs. Most business units with significant occupational health and safety risks have ISO 45001 certification. SOCIAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 69 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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SOCIAL INFORMATION The highest number of days lost was in the Industry business area (76 percent), in which 60 percent of the days lost referred to the Industrial Technology vertical, a vertical with higher health and safety risks. Addition- ally, the total number of days of sick leave was the highest in the Industry business area, followed by Services and Trade. The distribution of short- term sick leave and long-term sick leave followed the distribution of the average number of employees in each business area; Industry had the highest number of days of sick leave and the highest average number of employees, and Trade had the lowest number of days of sick leave and the lowest average number of employees. Looking at intensity metrics, Trade had the highest short-term sick leave per average number of employees, while Industry had the highest long-term sick leave per average number of employees. The proportion covered by management systems increased by 5 percent, which is considered reasonable, as the number of certified business units rose compared with the previous year, while the number of employees fell. For the outcome related to the proportion of certified business units, see p. 74. The number of work-related fatalities (non- employees), lost time injury frequency rate (LTIFR), number of lost days, and sick leave are new KPIs for the 2025 reporting year; therefore, no comparative figures are available. Accounting principles and scope Fatal accidents to and from work are not included in the reporting. Serious work-related accidents are defined as accidents where one or more people were injured at the workplace or in a place they visited for work. Examples of serious injuries are fractures, severe bleeding or damage to internal organs. Lost time injury frequency rate (LTIFR) states the number of serious accidents per one million hours worked. The number of hours worked was calculated based on a standardised number of hours worked per year of 1,920 hours. Sweden was used as a standard, as the majority of Storskogen’s employees are located in Sweden. Actual deviations in working hours between countries were not considered, but the calculation may be refined in future years. This also applies to the accidents included in the calcula- tions. The number of hours worked was calculated based on the average number of employees multiplied by the standardised number of hours worked per year. For the 2025 financial year, lost time injury frequency rate (LTIFR) is based on serious work-related accidents, as complete informa- tion on all work-related injuries in the Company’s own workforce is missing at present. This means that the total number of injuries and the total rate of work-related injuries cannot be disclosed pursuant to ESRS S1-14. In 2026, data collection and reporting procedures will be developed further to include all kinds of work-related injuries. Storskogen will thereby be able to report fully pursuant to ESRS S1-14 from the next reporting year. The number of days lost includes days lost due to work-related injuries, work-related ill-health and fatalities (caused by work-related accidents or ill-health) among employees. Sick leave is calculated as the total number of sick days (divided into short and long-term sick leave) divided by the average number of employ- ees. Short-term sick leave refers to days 1 to 14, while long-term sick leave refers to days 15 and beyond. The metric includes all sick days during regular working hours, regardless of the reason, which are not included in the key metric “Number of days lost.” Sick leave and number of days lost are reported by business units with an average number of employees during the year of more than 50, which covers 84 percent of the total average number of employees during the year. The selection is considered to reflect total sick leave and the number of days lost. The proportion covered by management systems is calculated as the number of employees at year-end who are covered by management systems, divided by the total number of employees. Management systems refer to ISO 45001 or similar. S1-17 Human rights incidents Human rights incidents at Storskogen KPI 2025 2024 Number of reports received through the whistleblowing function (human rights) 3 0 Number of cases confirmed 0 0 Number of reports received through the National Contact Point (NCP) 0 N/A Severe incidents (human rights) 0 0 Fines, penalties or compensation, SEK 0 0 Comments on the outcome In 2025, 8 cases in total were reported through the whistleblowing system. None of these were legal whistleblower cases. Of the reports received, 3 cases referred to human rights. All cases are closed. Accounting policies All whistleblowing cases were reported through an external whistleblowing channel. Whistleblowing may relate to any kind of grievance or irregularity that violates Storskogen’s Code of Conduct. Only legal whistleblower cases were reported as confirmed cases. Legal whistleblower cases refer to cases that constitute non-compliance pursuant to the Swedish Whistle- blowing Act. Every OECD member country has a National Contact Point (NPC) – an authority or function that receives complaints from companies that have allegedly violated OECD guidelines, such as related to human rights, working conditions, anti-corruption or the environment. Severe incidents (human rights) are defined based on the classification of “severe” in the UN Guiding Principles on Business and Human Rights (UNGPs). Only confirmed cases are included and classified according to local procedures. Data collection and follow up occur locally, while aggre- gation and quality review are handled at the Group level. Fines/administra- tive fines or compensation refer to cases related to discrimination, harass- ment or serious human rights violations in Storskogen’s own workforce. SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 70 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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S2 Workers in the value chain Introduction to the matter This s tandard w as i dentified a s m aterial i n t he d ouble materiality a ssessment. N onetheless, c omplete r eporting pursuant t o E SRS S 2 h as b een o mitted f or t he 2 025 fi nancial year based on the EU Commission’s phase-in provisions that allow the omission of certain standards during the ini- tial reporting years for “wave one” companies. Storskogen has opted to apply this relief, as the Company is currently striving to build more robust processes and digital system support that will allow the collection, quality assurance and follow-up of relevant information from the supply chain. In 2026, Storskogen will continue to prioritise capacity building, including training initiatives related to sustainable supply chains, risk management, conduct requirements and follow up of suppliers in high-risk categories. For further informa- tion on Storskogen’s management of relationships with suppliers, see section G1, p. 73. Storskogen plans to initiate complete reporting pursuant to ESRS S2 from the 2027 financial year. A brief account of the standard is provided here. Material impacts and risks related to workers in the value chain IRO Type Description Working conditions in the value chain Upstream Potential negative impact Inadequate consideration of working conditions and human rights among s uppliers may have a negative impact on working and social conditions in the value chain. S2-1 Policies Storskogen’s shared Supplier Code of Conduct sets mini- mum requirements for sustainability and social responsibil- ity throughout the value chain. Each business unit adapts its c ompliance e fforts t o i ts s pecific r isks a nd t he s ize o f t he operations to align with the Supplier Code of Conduct, which includes basic requirements for working conditions, environmental considerations and social standards. S2-4 Actions Storskogen supports responsible purchasing through a Group-wide programme for sustainable supply chains that has been designed to help business units assess and man- age social risks in their supplier base. The programme is a support platform that offers practical tools and guidance that can be applied when relevant, particular in case of increased risk. S2-5 Metrics and targets Storskogen’s programme is based on the following targets to maintain sustainable working conditions for workers in the value chain: • All business units shall conduct risk assessments and identify any high-risk suppliers. • All high-risk supplies shall sign a Supplier Code of Conduct, and follow-up shall be conducted. SOCIAL INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 71 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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G1 Business conduct Introduction to the matter Business conduct and regulatory compliance are funda- mental t o p reserving S torskogen’s c onfidence a mong c us- tomers, owners, employees and society at large. Responsi- ble conduct across all parts of the operations is key to long-term success and sustainable value creation. At the Group level, a common approach is established through governance documents, guiding principles, minimum requirements and regular follow-up by the boards of the business units. Storskogen’s commitment to maintaining high business ethics and governance standards includes: • Zero tolerance for corruption and bribery. • Business conduct and anti-corruption training for employees and management. Material impacts and risks related to business conduct IRO Type Description Business ethics, corruption and fraud Own operations Downstream Actual negative impact Risk Unclear procedures and inadequate control systems may lead to bribery and corruption, particularly in high-risk countries. This may result in increased litigation costs and loss of revenue due to reputational damage. Corruption, b ribery a nd f raud h ave b een i dentified a s m ate- rial matters at the Group level, considering the operations’ transaction volumes and geographical spread. The nega- tive i mpacts i dentified a re b oth a ctual a nd p otential, r elated to the risk that the Group’s operations or business partners act in contravention of the Group’s expectations and gov- ernance documents on business ethics and responsible governance. Corruption, bribery and fraud also constitute a fi nancial r isk t hrough p otential c osts, l egal s anctions o r brand d amage. N o o pportunities w ere i dentified a t t he Group level. The lack of business ethics also contributes to societal damage by distorting markets and weakening institutions. Inadequate compliance and control procedures may i ncrease t he r isk o f b ribery, c onflicts o f i nterest o r i rreg- ularities in the value chain, which, in turn, may result in legal sanctions, fi nancial l oss a nd l asting r eputational d amage for the Group. The Group has previously been subjected to cases of fraud in individual business units. Even if the majority of Storskogen’s operations are con- ducted in countries with well-developed legal systems, ethical risks may arise, particularly in supplier-intensive industries, public procurement or cross-border transactions. Risks include bribery, fraud, conflicts of interest, inadequate due diligence related to acquisitions and inadequate inter- nal control. Such deficits may result in legal proceedings, economic loss and reputational damage for the Group, particularly in cases of non-compliance with applicable laws or breaches of Storskogen’s Code of Conduct. Roles of the Board and Group management Storskogen’s Board has overall responsibility for maintaining good corporate governance and business conduct. The Board adopts policies on business conduct, anti-corruption and regulatory compliance and follows up through quar- terly reporting by the Group management. The Group man- agement is responsible for implementing and following up on policies, training and control as part of the internal con- trol framework. Compliance with the Anti-corruption Policy is dealt with continuously in the boards of the business units, and material deviations are reported to the Board of Stor- skogen. The whistleblowing service, which is operated by an e xternal a nd i ndependent p arty ( WhistleB), e nsures anonymity, c onfidentiality a nd i mpartial m anagement o f received reports. G1-1 Policies Storskogen’s common business conduct framework consti- tutes a central element in Storskogen’s corporate culture and aims to establish and promote a common approach to ethics, accountability and professionalism throughout the Group. The f ramework c omprises fi ve g uidelines: • Sustainability Policy – states the principles for business ethics and anti-corruption and emphasises the impor- tance of integrating ethical and sustainable business principles throughout the Group. Storskogen and its business units shall act in accordance with international standards and prioritise transparency and accountability in all business relationships. • Code of Conduct – defines the Company’s expectations on all employees related to business ethics and responsi- ble conduct. It also highlights the importance of reporting violations to maintain high ethical standards. • Anti-corruption Policy – contains guidelines to identify, prevent and manage the risk of corruption and bribery. The policy stipulates zero tolerance and poses require- ments on business ethics and anti-corruption training for risk-exposed positions such as purchasing, sales and management teams. Training is provided regularly in collaboration with an external party. • Supplier Code of Conduct – poses requirements on statutory compliance, respect for human rights and zero tolerance for corruption. • Whistleblowing Policy – allows suspected violations to be reported anonymously and contributes to early management of irregularities. The channel can be used by employees and external parties alike. Retaliation or reprisals are prohibited. Corporate governance information SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 72 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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The policies apply to all employees throughout the Group and, where practical, third parties acting on behalf of Stor- skogen, such as agents and suppliers. For more information about Storskogen’s policies, see p. 52. Storskogen’s legal function coordinates the whistleblowing channel, advice and independent investigations with the sustainability function. Follow-up is reported quarterly to the Group management and at least annually to the Board. Storskogen’s efforts to identify, prevent, mitigate and report are explained in the section Due diligence process on p. 45. G1-2 Management of relationships with suppliers To ensure sustainable supply chains, Storskogen has estab- lished a Group-wide four-step programme: 1. Training – Storskogen’s purchasers shall have relevant knowledge to understand their role in promoting sustain- able supply chains. To this end, the Group has developed online training that includes mapping the supply chain, imposing requirements, evaluating compliance and following up. 2. Assessment – Storskogen’s supply chains are mapped to identify the greatest risk of negative social and envi- ronmental impacts, including impacts on human rights. Suppliers i n h igh-risk s egments a re i dentified a nd p riori- tised based on risk level. 3. Agreement – Storskogen’s Supplier Code of Conduct, which i s b ased o n t he T en P rinciples o f t he U N G lobal Compact, shall be a minimum requirement in supplier agreements. 4. Compliance – Storskogen shall cooperate with high-risk suppliers to assess their compliance with the Code of Conduct to prevent and mitigate potential or actual environmental or human rights violations. All documents, such as online training, self-assessment templates, policies and policy reviews, are available on KX, Storskogen’s Group-wide information platform. The material is available in Swedish and English. Initiatives are ongoing and are being implemented gradually. Some business units have made more progress than others in mapping suppli- ers, and Storskogen is continuing to support the implemen- tation to ensure a uniform application of the programme. G1-3 Prevention of corruption and bribery Storskogen engages in systematic efforts to prevent, detect and manage corruption and bribery across the Group and its business units. Prevention includes regular risk assess- ments and reviews to identify potential risks and the appli- cation of the authorisation instructions, according to which the d uality p rinciple e nsures t hat n o fi nancial t ransactions are approved by a single individual. Storskogen’s internal control framework includes special controls related to anti-corruption. These controls are tested annually by the business units, and the outcome is reported to the board of each business unit. The purpose is to ensure that the Group’s procedures and processes effectively pre- vent irregularities and maintain a high level of financial integrity. Employees in positions identified as being exposed to risk participate in mandatory business conduct and anti- corruption training to ensure they have the required knowl- edge and comply with Storskogen’s guidelines. Compliance with the Group’s Anti-corruption Policy is a standing item on the business units’ board meetings, ensur- ing continuous follow-up at the local level. Suspected viola- tions can be reported through Storskogen’s whistleblowing function. To ensure impartial incident management, reports received are handled according to adopted procedures where the investigation is performed by independent func- tions with no link to the affected business. Serious cases are reported directly to the Group’s Board. Target In 2025, no new targets for business conduct were adopted at the Group level. Storskogen continues its efforts related to previously adopted targets: • No confirmed incidents of corruption or bribery. • 100 percent of employees in high-risk positions shall undergo training on business ethics. • 100 percent of high-risk suppliers shall sign the Code of Conduct. These t argets r eflect t he G roup’s c ommitment t o m aintain- ing high business ethics and governance standards. This work aims to prevent irregularities and ensure fair competi- tion, w hile s trengthening c onfidence a mong c ustomers, suppliers and investors. Metrics The follow up of the targets is reported in the following table, with key metrics for incidents related to corruption and brib- ery. The data is consolidated at the Group level. In addition to these metrics, information on the proportion of business units that have management systems is included. This disclosure is company-specific, as it is not covered by any specific requirement in the ESRS standards, but it is still deemed to constitute an important element in describing how Storskogen’s business units structure, govern and follow up on their work in different areas, including mat- ters related to business conduct, the environment and the work environment. Business units with fewer than 50 employees without high risk exposure are exempt from the central KPI collection. CORPORATE GOVERNANCE INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 73 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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G1-4 Incidents related to corruption and bribery Incidents related to corruption and bribery at Storskogen KPI 2025 2024 Number of violations related to anti-corruption, sanctions or anti-money laundering 0 0 Number of Code of Conduct violations 0 0 Number of reports received by the whistleblowing function (anti-corrüption) 0 0 Proportion of investigated/closed whistleblowing cases, % 0% 0% Proportion of employees in high-risk positions who have had business conduct training, % 73% 74% Comments on the outcome There were no reported violations of anti-corruption, sanctions or anti- money laundering policies or violations of the Code of Conduct during the year. The training target for the year was not achieved; work on reaching the target level continues. Accounting policies All whistleblowing cases are reported through an external whistleblowing channel. Whistleblowing may relate to any kind of grievance or irregularity that violates Storskogen’s Code of Conduct. Only legal whistleblower cases are reported as whistleblower cases in the report. Data source: Whistle- blowing system, HR/labour rights, investigation register, Legal/Finance and Sustademy. Management system – company-specific disclosure Proportion of business units with management systems KPI 2025 2024 ISO 9001 (or equivalent) 52% 52% ISO 14001 (or equivalent) 48% 47% ISO 45001 (or equivalent) 21% 16% Comments on the outcome Storskogen strives for all business units to have management systems where such systems add value. ISO certifications are more common in Storskogen’s Swedish business units, nearly all of which have certifications, whereas the German, Swiss, Danish and UK business units do not yet have ISO certifications to the same extent. Over the year, six business units in total began to apply ISO 45001: two in Trade, two in Services and two in Industry. Accounting policies Proportion of business units with management systems certified according to ISO 9001, 14001 or 45001 or equivalent management systems at the end of December 2025. If at least one subsidiary of a business unit was certified, the whole business unit was regarded as certified according to the current accounting policies. Data source: Data reported by the business units. CORPORATE GOVERNANCE INFORMATION SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 74 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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List of datapoints derived from other EU legislation Disclosure requirement and data point (ESRS) Reference in the SFDR Reference in the third pillar Reference in the EU Benchmark Regulation Reference in the EU Climate Law Section in this report ESRS 2 GOV-1 A more even gender distribution in the boards, datapoint 21(d) Indicator 13, Table 1, Annex I Commission Delegated Regulation (EU) 2020/1816, Annex II ESRS 2 General information – Sustainability governance, p. 44 ESRS 2 GOV-1 Percentage of independent board members, datapoint 21(e) Commission Delegated Regulation (EU) 2020/1816, Annex II ESRS 2 General information – Sustainability governance, p. 44 ESRS 2 GOV-4 Statement on due diligence, datapoint 30 Indicator 10, Table 3, Annex I ESRS 2 General information – Due diligence process, p. 45 ESRS 2 SBM-1 Involvement in fossil-related operations, datapoint 40(d)(i) Indicator 4, Table 1, Annex I CRR Art. 449a; Commission Implementing Regulation (CIR) (EU) 2022/2453, Templates 1–2 (overview and exposures) Commission Delegated Regulation (EU) 2020/1816, Annex II Not r elevant ESRS 2 SBM-1 Involvement in chemicals production, datapoint 40(d)(ii) Indicator 9, Table 2, Annex I Commission Delegated Regulation (EU) 2020/1816, Annex II Not r elevant ESRS 2 SBM-1 Involvement in controversial weapons, datapoint 40(d)(iii) Indicator 14, Table 1, Annex I Commission Delegated Regulation (EU) 2020/1818, Article 12(1); Commission Delegated Regulation 2020/1816, Annex II Not r elevant ESRS 2 SBM-1 Involvement in the cultivation and production of tobacco, datapoint 40(d)(iv) Commission Delegated Regulation (EU) 2020/1818, Article 12(1) Not r elevant ESRS E1-1 Transition plan to reach climate neutrality by 2050, datapoint 14 Regulation (EU) 2021/1119, Article 2(1) E1 Climate change – Transition plan, p. 55 ESRS E1-1 Exclusion from the EU Paris-aligned indices, datapoint 16 (g) CRR Art. 449a; CIR (EU) 2022/2453, Template 1 (alignment) Commission Delegated Regulation (EU) 2020/1818, Article 12(1)(d)–(g) Not r elevant ESRS E1-4 GHG emission reduction targets, datapoint 34 Indicator 4, Table 2, Annex I CRR Art. 449a; CIR (EU) 2022/2453, Template 3 (alignment metrics) Commission Delegated Regulation (EU) 2020/1818, Art. 6 E1 Climate change – Targets, p. 55 ESRS E1-5 Energy consumption, datapoint 37 Indicator 5, Table 1, Annex I E1 Climate change – Energy consumption, p. 58 ESRS E1-5 Energy consumption from fossil sources, datapoint 38 (high climate impact only) Indicator 5, Tables 1 and 2, Annex I E1 Climate change – Energy consumption, p. 58 ESRS E1-5 Energy intensity, datapoints 40–43 (high climate impact sector) Indicator 6, Table 1, Annex I E1 Climate change – Energy intensity,, p. 58 ESRS E1-6 Gross Scopes 1, 2, 3 and Total, datapoint 44 Indicators 1 and 2, Table 1, Annex I CIR (EU) 2022/2453, Template 1 Commission Delegated Regulation (EU) 2020/1818, Article 8(1) E1 Climate change – GHG emissions, p. 59 ESRS E1-6 Gross GHG intensity, datapoints 53–55 Indicator 3, Table 1, Annex I CIR (EU) 2022/2453, Template 3 Commission Delegated Regulation (EU) 2020/1818, Article 8(1) E1 Climate change – GHG emissions, p. 60 ESRS E1-7 Removals/offsetting, datapoint 56 Regulation (EU) 2021/1119, Article 2(1) E1 Climate – Offsetting (not applied in 2025), p. 63 ESRS E1-9 Exposure to physical climate-related risks, datapoint 66 (a, c) CIR (EU) 2022/2453, Template 5 Commission Delegated Regulation (EU) 2020/1818, Appendix II; Commission Delegated Regulation 2020/1816, Annex II E1 Climate – Risks (phasing in quantification), p . 6 3 ESRS E 1 -9 V alue o f r eal e state b y e nergy e fficiency c lass, datapoint 67(c) CIR (EU) 2022/2453, Template 2 Not r elevant APPENDIX SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 75 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Disclosure requirement and data point (ESRS) Reference in the SFDR Reference in the third pillar Reference in the EU Benchmark Regulation Reference in the EU Climate Law Section in this report ESRS E1-9 Exposure to climate-related opportunities, datapoint 69 Commission Delegated Regulation (EU) 2020/1818, Annex II E1 Climate – Financial effects, p. 63 ESRS E2-4 Pollution of air/water/soil (E -P RTR), datapoint 28 Indicator 8, Table 1; Indicators 1–3, Table 2, Annex I Non-material ESRS E3-1 Commitments and policies related to water and marine resources, datapoint 9, 13–14 Indicators 7, 8 and 12, Table 2, Annex I Non-material ESRS E3-4 Recycled/reused water, datapoint 2 8(c); W ater c onsumption, d atapoint 2 9 Indicators 6.2 and 6.1, Table 2, Annex I Non-material ESRS 2 - SBM 3 - E4, datapoint 16(a) Indicator 7. Table 1, Annex I Non-material ESRS 2 - SBM 3 - E4, datapoint 16(b) and (c) Indicators 10 and 14, Table 2, Annex I Non-material ESRS E4-2 Policies (use of land, oceans/seas, deforestation), datapoint 24(b–d) Indicators 11, 12 and 15, Table 2, Annex I Non-material ESRS E 5 -5 N on-recycled/hazardous w aste, d atapoint 37(d), 39 Indicator 13, Table 2; Indicator 9, Table 1, Annex I E5 – Resource use and circular economy – Total waste, p. 65 ESRS 2 - SBM 3 - S1 Risk of incidents of forced labour, datapoint 14(f) Indicator 13, Table 3, Annex I S1 Own workforce – Material impacts, risks and opportunities, p. 66 ESRS 2 - SBM 3 - S1 Risk of incidents of child labour, datapoint 14(g) Indicator 12, Table 3, Annex I S1 Own workforce – Material impacts, risks and opportunities, p. 66 ESRS S1-1 Human rights policy commitments, datapoint 20 Indicator 9, Table 3 and Indicator 11, Table 1, Annex I S1 Own workforce – Policies, p. 67 ESRS S1-1 Due diligence strategies for matters dealt with in ILO’s core conventions 1-8, datapoint 21 Commission Delegated Regulation (EU) 2020/1816, Annex II S1 Own workforce – Policies, p. 67 ESRS S 1-1 P rocedures a nd a ctions t o p revent t rafficking in human beings, datapoint 22 Indicator 11, Table 3, Annex I S1 Own workforce – Policies, p. 67 ESRS S1-1 Accident prevention policy/system, datapoint 23 Indicator 1, Table 3, Annex I S1 Own workforce – Policies, p. 67 ESRS S1-3 Grievance/complaints handling mechanisms, datapoint 32(c) Indicator 5, Table 3, Annex I S1 Own workforce – Channels to raise concerns, p. 67 ESRS S 1 -1 4 N umber a nd r ate o f w ork-related a ccidents, datapoint 88(b), (c) Indicator 2, Table 3, Annex I Commission Delegated Regulation (EU) 2020/1816, Annex II S1 O wn w orkforce – W ork e nvironment, p. 69 ESRS S 1 -1 4 N umber o f d ays l ost t o i njuries/accidents, datapoint 88(e) Indicator 3, Table 3, Annex I S1 O wn w orkforce – W ork e nvironment, p. 69 ESRS S1-1 6 Unadjusted gender pay gap, datapoint 97 (a) Indicator 12, Table 1, Annex I Commission Delegated Regulation (EU) 2020/1816, Annex II Non-material ESRS S1-1 6 Pay gap indicators (CEO pay ratio), datapoint 97(b) Indicator 8, Table 3, Annex I Non-material ESRS S1-1 7 Incidents of discrimination, datapoint 103(a) Indicator 7, Table 3, Annex I G1 Business conduct – Human rights incidents, p.70 List of datapoints derived from other EU legislation, cont. APPENDIX SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 76 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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List of datapoints derived from other EU legislation, cont. Disclosure requirement and data point (ESRS) Reference in the SFDR Reference in the third pillar Reference in the EU Benchmark Regulation Reference in the EU Climate Law Section in this report ESRS S 1 -1 7 N on-respect o f t he U N G uiding P rinciples a nd OECD Guidelines, datapoint 104(a) Indicator 10, Table 1 and Indicator 14, Table 3, Annex I Commission Delegated Regulation (EU) 2020/1816, Appendix II and Commission Delegated Regulation 2020/1818, Article 12(1) S1 Own workforce – Policies, p. 67 ESRS 2 - S BM 3 - S 2 s ignificant r isk o f c hild l abour o r forced labour in the value chain, datapoint 11(b) Indicators 12 and 13, Table 3, Annex I S2 W orkers i n t he v alue c hain ( phase-in in 2025), p. 71 ESRS S2-1 Human rights policy commitments, datapoint 17 Indicator 9, Table 3 and Indicator 11, Table 1, Annex I S2 W orkers i n t he v alue c hain ( phase-in in 2025), p. 71 ESRS S2-1 Policies related to value chain workers, datapoint 18 Indicators 11 and 4, Table 3, Annex I S2 W orkers i n t he v alue c hain ( phase-in in 2025), p. 71 ESRS S 2 -1 N on-respect o f t he U N G uiding P rinciples a nd OECD Guidelines, datapoint 19 Indicator 10, Table 1, Annex I Commission Delegated Regulation (EU) 2020/1816, Appendix II and Commission Delegated Regulation 2020/1818, Article 12(1) S2 W orkers i n t he v alue c hain ( phase-in in 2025), p. 71 ESRS S2-1 Due diligence strategies for matters dealt with in ILO’s core conventions 1-8, datapoint 19 Commission Delegated Regulation (EU) 2020/1816, Annex II S2 W orkers i n t he v alue c hain ( phase-in in 2025), p. 71 ESRS S2-4 Human rights issues and incidents connected to the Company’s value chain, datapoint 36 Indicator 14, Table 3, Annex I S2 W orkers i n t he v alue c hain ( phase-in in 2025), p. 71 ESRS S3-1 Human rights policy commitments, datapoint 16 Indicator 9, Table 3, Annex I and Indicator 11, Table 1, Annex I Non-material ESRS S 3-1 N on-respect o f t he U N G uiding P rinciples, ILO’s principles or OECD Guidelines, datapoint 17 Indicator 10, Table 1, Annex I Commission Delegated Regulation (EU) 2020/1816, Appendix II and Commission Delegated Regulation 2020/1818, Article 12(1) Non-material ESRS S3-4 Human rights issues and incidents, datapoint 36 Indicator 14, Table 3, Annex I Non-material ESRS S4-1 Policies related to consumers and end-users, datapoint 16 Indicator 9, Table 3 and Indicator 11, Table 1, Annex I Non-material ESRS S 4-1 N on-respect o f t he U N G uiding P rinciples and OECD Guidelines, datapoint 17 Indicator 10, Table 1, Annex I Commission Delegated Regulation (EU) 2020/1816, Appendix II and Commission Delegated Regulation 2020/1818, Article 12(1) Non-material ESRS S4-4 Human rights issues and incidents, datapoint 35 Indicator 14, Table 3, Annex I Non-material ESRS G1-1 Business conduct policies and corporate cul - ture, d atapoint 1 0 – U N C onvention a gainst C orruption, datapoint 10(b) Indicator 15, Table 3, Annex I G1 Business conduct – Policies, p. 72 ESRS G1-1 Protection of whistleblowers, datapoint 27(g) Indicator 6, Table 3, Annex I G1 Business conduct – Policies, p. 72 ESRS G1-4 Fines for violation of anti-corruption/ anti-bribery laws, datapoints 24(a) and 24(b) Indicator 17, Table 3, Annex I Commission Delegated Regulation (EU) 2020/1816, Annex II G1 Business conduct – Incidents related to corruption and bribery, p. 74 ESRS G1-4 Standards of anti-corruption and anti-bribery, datapoint 24(b) Indicator 16, Table 3, Annex I G1 Business conduct – Incidents related to corruption and bribery, p. 74 APPENDIX SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 77 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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ESRS content index GENERAL INFORMATION ESRS 2 – General disclosures Section Disclosure requirement Page Reference BP-1 and BP-2 Basis for preparation of the Sustainability Report p. 43 GOV-1 The role of the administrative, management and supervisory bodies p. 44 GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies p. 44 GOV-3 Integration of sustainability-related performance in incentive schemes p. 45 GOV-4 Due diligence process p. 45 GOV-5 Risk management and internal controls over sustainability reporting p. 45 SBM-1 Strategy, business model and value chain p. 46 SBM-2 Interests and views of stakeholders p. 49 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model p. 50 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities p. 51 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Report p. 52 ENVIRONMENTAL INFORMATION ESRS E1- Climate change Section Disclosure requirement Page Reference Taxonomy p. 53 See fi gures i n t he fi nancial statements, p. 81, pp. 111-114, notes 13-14 and p. 128, note 27 E1-1 Transition plan for climate change mitigation p. 55 E1-2 Policies related to climate change mitigation and adaptation p. 56 E1-3 Actions and resources in relation to climate change policies p. 56 E1-4 Targets related to climate change mitigation and adaptation p. 57 E1-5 Energy consumption and mix p. 58 E1-6 Gross Scopes 1, 2, 3 and total GHG emissions p. 59 E1-9 Financial effects from climate-related risks and opportunities p. 63 APPENDIX ENVIRONMENTAL INFOMRATION, cont. ESRS E5 – Resource use and circular economy Section Disclosure requirement Page Reference E5-1 Policies related to resource use and circular economy p. 64 E5-2 Actions related to resource use and circular economy p. 64 E5-3 Targets related to resource use and circular economy p. 65 E5-4 and -5 Metrics r elated t o m aterials a nd c ontractual fl ows i n S cope 3 p. 65 E5-6 Financial effects of risks related to resources and circular flows p. 65 SOCIAL INFORMATION ESRS S1 – Own workforce Section Disclosure requirement Page Reference S1-1 Policies related to own workforce p. 67 S1-2 Processes for engaging with own workforce p. 67 S1-3 Channels to raise concerns p. 67 S1-4 Taking action on impacts on own workforce p. 68 S1-5 Targets related to managing negative impacts p. 68 S1-6 Characteristics of Storskogen’s employees p. 69 S1-9 Diversity metrics p. 69 S1-14 Health and safety metrics p. 69 S1-17 Incidents, complaints and severe human rights impacts p. 70 ESRS S2 – Workers in the value chain This standard is being phased in p. 71 GOVERNANCE INFORMATION ESRS G1 – Business conduct Section Disclosure requirement Page Reference G1-1 Business conduct policies p. 72 G1-2 Management of relationships with suppliers p. 73 G1-3 Prevention and detection of corruption and bribery p. 73 G1-4 Incidents related to corruption and bribery p. 74 SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 78 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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List of disclosure requirements Disclosure requirement Status E1-1 Transition plan by 2050 Material E1-4 Targets – absolute emission reduction and intensity Material E1-5 Energy consumption and mix Material E1-6 GHG emissions (Scopes 1, 2 and 3) Material E1-7 Carbon credits – cancelled/used Non-material E1-8 Internal carbon pricing Non-material E1-9 Financial effects – physical and transition risks Phase-in E5-4 Inflows o f m aterials ( steel a nd o ther m etals) Material E5-5 Resource o utflows ( waste) Material E5-6 Anticipated fi nancial e ffects Phase-in S1-6 Characteristics of the workforce Material S1-7 Non-employee w orkers i n t he u ndertaking’s o wn w orkforce Phase-in S1-8 Collective bargaining coverage and social dialogue Non-material S1-9 Diversity (management and boards) Material Disclosure requirement Status S1-10 Adequate wages Non-material S1-11 Social protection Non-material S1-12 Persons with disabilities Non-material S1-13 Training and skills development Non-material S1-14 Health and safety Material S1-15 Work-life b alance Non-material S1-16 Pay gap Non-material S1-17 Incidents and severe impacts Material S2 Workers i n t he v alue c hain Phase-in G1-2 Management of relationships with suppliers Material G1-3 Prevention and detection of corruption and bribery Material G1-4 Incidents of corruption or bribery Material G1-5 Political i nfluence Non-material G1-6 Payment practices Non-material APPENDIX SUSTAINABILITY REPORT Storskogen Annual and Sustainability Report 2025 79 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT GENERAL INFORMATION ENVIRONMENTAL INFORMATION SOCIAL INFORMATION GOVERNANCE INFORMATION APPENDIX FINANCIAL STATEMENTS THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Financial statements Download print-optimised pdf INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR’S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS
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CONSOLIDATED INCOME STATEMENT 1 January–31 December, SEK m Note 2025 2024 Net sales 3, 4 33,097 34,182 Raw materials and consumables –17,746 –18,349 Other external expenses –3,807 –3,953 Personnel costs 8 –7,725 –8,018 Other operating income 10 642 714 Other operating expenses 10 –320 –353 EBITDA 4,141 4,223 Depreciation and impairment of property, plant and equipment 7 –1,053 –1,209 EBITA 3,088 3,013 Amortisation and impairment of intangible assets 7 –697 –1,521 Operating profit (EBIT) 2,391 1,492 Financial income 414 276 Financial expenses –1,220 –1,275 Net financial items 11 –806 –999 Profit before tax 1,585 493 Income tax 12 –386 –376 Profit for the year 1,199 116 Profit for the year attributable to: Owners of the Parent Company 1,063 –52 Non-controlling interests 136 168 Basic and diluted earnings per share, SEK Note 2025 2024 Basic earnings per share, series A and B 32 0.63 –0.03 Diluted earnings per share, series A and B 32 0.63 –0.03 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1 January–31 December, SEK m Note 2025 2024 Profit for the year 1,199 116 Other comprehensive income Items that will not be transferred to the income statement Remeasurements of defined benefit pension plans 54 –13 Total items that will not be transferred to the income statement 54 –13 Items that have been or may be transferred to profit or loss for the year Translation differences, foreign operations –1,058 501 Gains/losses on holdings of derivatives for cash flow hedging 15 9 Total items that have been or may be transferred to profit or loss for the year –1,043 510 Other comprehensive income –989 497 Comprehensive income for the year, net of tax 210 613 Comprehensive income for the year, net of tax, attributable to: Owners of the Parent Company 233 344 Non-controlling interests –23 269 Comprehensive income for the year, net of tax 210 613 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 81 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR’S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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CONSOLIDATED BALANCE SHEET SEK m Note 31 Dec 2025 31 Dec 2024 Assets Goodwill 13 18,124 18,455 Other intangible assets 13 4,886 5,483 Property, plant and equipment 14 3,565 3,781 Right-of-use assets 27 1,540 1,591 Financial investments 49 37 Non-current receivables 229 270 Pension obligation assets 21 18 13 Deferred tax assets 12 162 169 Total non-current assets 28,572 29,797 Inventories 15 4,382 4,346 Tax assets 498 555 Trade receivables 17 4,140 4,063 Contract assets 4 1,656 1,673 Prepaid expenses and accrued income 16 499 519 Other receivables 377 328 Current investments 25 0 0 Cash and cash equivalents 18 1,332 1,899 Total current assets 12,884 13,383 Total assets 41,455 43,180 SEK m Note 31 Dec 2025 31 Dec 2024 Equity Share capital 19 1 1 Other contributed capital 13,268 13,268 Reserves 19 93 976 Retained earnings including profit for the year 7,235 6,561 Equity attributable to owners of the Parent Company 20,597 20,806 Non-controlling interests 3 0 Total equity 20,599 20,807 Liabilities Interest-bearing non-current liabilities 20 8,925 8,575 Non-current lease liabilities 20, 27 1,102 1,114 Pension provisions 21 221 263 Other non-current liabilities 23 380 1,167 Provisions 22 40 33 Deferred tax liabilities 12 1,504 1,663 Total non-current liabilities 12,173 12,815 Interest-bearing current liabilities 20 368 1,423 Current lease liabilities 20, 27 449 492 Contract liabilities 4 1,220 1,545 Trade payables 2,430 2,311 Tax liabilities 594 572 Other liabilities 23 1,876 1,428 Accrued expenses and deferred income 24 1,712 1,739 Provisions 22 35 48 Total current liabilities 8,683 9,558 Total liabilities 20,856 22,373 Total equity and liabilities 41,455 43,180 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 82 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR’S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY SEK m Equity attributable to owners of the Parent Company Share capital Other contributed capital Translation reserve Hedging reserve Retained earnings incl. profit for the year Total Non-controlling interests Total equity Opening balance, 1 January 2025 1 13,268 1,059 –83 6,561 20,806 0 20,807 Comprehensive income for the year Profit for the year – – – – 1,063 1,063 136 1,199 Remeasurements of defined benefit pension plans – – – – 54 54 0 54 Other comprehensive income for the year – – –899 15 – –884 –159 –1,043 Comprehensive income for the year – – –899 15 1,117 233 –23 210 Transactions with the Group’s owners Contributions from and value transfers to owners Repurchase of own shares – – – – –91 –91 – –91 Dividends paid – – – – –169 –169 –90 –258 Transaction costs on issue of shares, after tax – –1 – – – –1 – –1 Contributed capital from issued share options – – – – 7 7 – 7 Share-based payment transactions – – – – –29 –29 – –29 Put options attributable to non-controlling interests – – – – –178 –178 589 411 Total contributions from and value transfers to owners – –1 – – –460 –460 499 39 Changes in ownership of subsidiaries Acquisition of non-controlling interest, existing control – – – – 21 21 –498 –477 Acquisition of businesses, existing non-controlling interest – – – – – – 52 52 Divestment of businesses, loss of control – – – – – – –45 –45 Divestment of non-controlling interest, control remains – – – – –3 –3 16 13 Total changes in ownership of subsidiaries – – – – 18 18 –474 –457 Total transactions with the Group’s owners – –1 – – –442 –442 25 –418 Closing balance, 31 December 2025 1 13,268 160 –67 7,235 20,597 3 20,599 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 83 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR’S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY, cont. SEK m Equity attributable to owners of the Parent Company Share capital Other contributed capital Translation reserve Hedging reserve Retained earnings incl. profit for the year Total Non-controlling interests Total equity Opening balance, 1 January 2024 1 13,177 659 –91 6,690 20,435 2 20,437 Comprehensive income for the year Profit for the year – – – – –52 –52 168 116 Remeasurements of defined benefit pension plans – – – – –13 –13 0 –13 Other comprehensive income for the year – – 400 9 – 409 101 510 Comprehensive income for the year – – 400 9 –65 344 269 613 Transactions with the Group’s owners Contributions from and value transfers to owners Dividends paid – – – – –152 –152 –78 –229 Conversion of loans in connection with acquisitions of companies 0 91 – – – 91 – 91 Transaction costs on issue of shares, after tax – 0 – – – 0 – 0 Contributed capital from issued share options – – – – 11 11 – 11 Share-based payment transactions – – – – 24 24 – 24 Put options attributable to non-controlling interests – – – – –11 –11 65 53 Total contributions from and value transfers to owners 0 91 – – –128 –37 –13 –50 Changes in ownership of subsidiaries Acquisition of non-controlling interest, existing control – – – – 76 76 –260 –183 Acquisition of businesses, existing non-controlling interest – – – – – – 2 2 Divestment of businesses, loss of control – – – – – – –23 –23 Divestment of non-controlling interest, control remains – – – – –13 –13 25 12 Total changes in ownership of subsidiaries – – – – 64 64 –257 –193 Total transactions with the Group’s owners 0 91 – – –64 27 –270 –243 Closing balance, 31 December 2024 1 13,268 1,059 –83 6,561 20,806 0 20,807 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 84 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR’S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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CONSOLIDATED CASH FLOW STATEMENT SEK m Note 2025 2024 Operating activities Profit before tax 1,585 493 Adjustment for non-cash items 31 1,809 2,896 Income tax paid –392 –661 Cash flow from operating activities before changes in working capital 3,002 2,728 Increase (-)/decrease (+) in inventories –208 –9 Increase (-)/decrease (+) in operating receivables –294 –47 Increase (+)/decrease (-) in operating liabilities –49 427 Cash flow from operating activities 2,451 3,098 Investing activities Purchase of property, plant and equipment –551 –675 Proceeds from sale of property, plant and equipment 112 129 Purchase of intangible assets –108 –104 Acquisition of subsidiary/business, net effect on liquidity 5 –390 –301 Divestment of subsidiary/business, net effect on liquidity 6 95 101 Acquisition of non-controlling interests –477 –183 Proceeds from sale of non-controlling interests 13 12 Acquisitions/divestments of financial assets 72 –98 Cash flow from investing activities –1,233 –1,121 SEK m Note 2025 2024 Financing activities Contributed capital from issued share options 6 11 Borrowings 3,680 4,509 Repayment of loans –4,314 –5,391 Settlement of derivatives related to financing –194 0 Repayment of lease liability –555 –568 Repurchased own shares –91 – Dividends to owners of the Parent Company –169 –152 Dividends to non-controlling interests –90 –78 Other financing activities 0 0 Cash flow from financing activities –1,725 –1,668 Cash flow for the year –508 309 Cash and cash equivalents at the beginning of the year 18 1,899 1,560 Exchange rate difference in cash and cash equivalents –60 31 Cash and cash equivalents at end of year 1,332 1,899 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 85 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR’S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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PARENT COMPANY STATEMENT OF PROFIT OR LOSS 1 January–31 December, SEK m Note 2025 2024 Net sales 34 117 182 Other external expenses –54 –84 Personnel costs 36 –113 –222 Other operating income 0 1 Other operating expenses 0 0 Amortisation and depreciation 0 0 Operating profit –50 –124 Profit/loss from participations in Group companies 42 400 74 Interest income and similar profit/loss items 43 1,392 1,627 Interest expenses and similar profit/loss items 44 –1,301 –1,104 Profit/loss after financial items 441 473 Appropriations 45 219 –46 Profit before tax 660 427 Income tax 38 0 –15 Profit for the year 660 412 PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME 1 January–31 December, SEK m Note 2025 2024 Profit for the year 660 412 Comprehensive income for the year 660 412 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 86 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR’S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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PARENT COMPANY BALANCE SHEET SEK m Note 31 Dec 2025 31 Dec 2024 Assets Non-current assets Intangible assets 0 0 Property, plant and equipment 1 1 Financial assets Participations in Group companies 47 12,464 10,373 Receivables from Group companies 35, 49 16,550 18,237 Other non-current receivables 191 242 Total financial assets 29,204 28,851 Total non-current assets 29,206 28,852 Current assets Current receivables Receivables from Group companies 35, 49 4,537 4,221 Other receivables 11 50 Prepaid expenses and accrued income 35 19 Total current receivables 4,584 4,290 Cash and bank balances 775 1,259 Total current assets 5,359 5,548 Total assets 34,564 34,400 SEK m Note 31 Dec 2025 31 Dec 2024 Equity and liabilities Equity Restricted equity Share capital 1 1 Unrestricted equity Retained earnings 4,698 4,565 Share premium reserve 13,289 13,283 Profit for the year 660 412 Total equity 18,648 18,260 Untaxed reserves Accumulated accelerated depreciation – 0 Total untaxed reserves – 0 Provisions Other provisions for pensions and similar commitments 1 1 Total provisions 1 1 Non-current liabilities Liabilities to credit institutions 39 8,716 8,403 Total non-current liabilities 8,716 8,403 Current liabilities Liabilities to credit institutions 39 255 1,321 Trade payables 35 1 7 Liabilities to Group companies 35 6,888 6,319 Other current liabilities 40 1 11 Accrued expenses and deferred income 41 55 78 Total current liabilities 7,200 7,736 Total equity and liabilities 34,564 34,400 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 87 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR’S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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PARENT COMPANY STATEMENT OF CHANGES IN EQUITY SEK m Restricted equity Unrestricted equity Share capital Retained earnings Share premium reserve Profit for the year Total equity Opening balance, 1 January 2025 1 4,565 13,283 412 18,260 Appropriation of previous year’s earnings – 412 – –412 – Comprehensive income for the year Profit for the year – – – 660 660 Comprehensive income for the year – – – 660 660 Repurchase of own shares – –91 –91 Dividends paid – –169 – – –169 Transaction costs on issue of shares, after tax – – –1 – –1 Contributed capital from issued share options – – 7 – 7 Share-based payment transactions – –19 – – –19 Closing balance, 31 December 2025 1 4,698 13,289 660 18,648 SEK m Restricted equity Unrestricted equity Share capital Retained earnings Share premium reserve Profit for the year Total equity Opening balance, 1 January 2024 1 4,019 13,181 687 17,887 Appropriation of previous year’s earnings – 687 – –687 – Comprehensive income for the year Profit for the year – – – 412 412 Comprehensive income for the year – – – 412 412 Dividends paid – –151 – – –151 Conversion of loans in connection with acquisitions of companies 0 – 91 – 91 Contributed capital from issued share options – – 11 – 11 Share-based payment transactions – 10 – – 10 Closing balance, 31 December 2024 1 4,565 13,283 412 18,260 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 88 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR’S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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PARENT COMPANY CASH FLOW STATEMENT SEK m Note 2025 2024 Operating activities Profit before tax 660 427 Adjustment for non-cash items 51 –79 295 Income tax paid –6 –35 575 686 Increase (–)/decrease (+) in operating receivables 22 –20 Increase (+)/decrease (–) in operating liabilities –23 –63 Cash flow from operating activities 574 604 Investing activities Purchase of property, plant and equipment –1 – Lending to Group companies –709 –27 Net change in deposits/borrowings, cash pool 722 919 Other change in financial assets 53 –64 Cash flow from investing activities 65 828 Financing activities Contributed capital from issued share options 6 11 Borrowings 3,583 4,509 Repayment of loans –4,260 –5,280 Settlement of derivatives related to financing –194 0 Repurchased own shares –91 – Dividends paid –169 –152 Cash flow from financing activities –1,123 –912 Cash flow for the year –484 520 Cash and cash equivalents at the beginning of the year 1,259 739 Cash and cash equivalents at end of year 775 1,259 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 89 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR’S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 1 SIGNIFICANT ACCOUNTING POLICIES The Group’s accounting policies BASIS FOR PREPARATION The consolidated accounts were prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as adopted by the European Union (EU). The Group also applies the Swedish Annual Accounts Act (1995:1554) and RFR 1 Supplementary Accounting Rules for Groups, issued by the Swedish Corporate Reporting Board. The Board of Directors approved this document on 27 March 2026. The financial statements will be adopted at the Annual General Meeting on 6 May 2026. Pursuant to German provisions in Sections 264 Abs 3 and 264b of the German Commercial Code (Handels- gesetzbuch, HGB), there is no requirement to publish annual reports for individual subsidiaries (both referring to companies and partnerships) in Germany, provided the entities are consolidated on a higher level in another EU member state. To meet the requirements on companies pursuant to 264 Abs 3 of the HGB, Storskogen Group has provided a guarantee for future financial years regarding any commitments made by the subsidiary until 31 December 2025. This resolution will be published in official German registers in accordance with Section 325 of the HGB. It was also determined that the exemptions in Sections 264 Abs 3 and 264b of the HGB are applicable to the Directors’ Report and the publication of the annual accounts of the subsidiaries in the official German register. The German subsidiaries listed below, which either have the legal form of a company or a partnership, make use of the exemptions according to the above description, which are provided in Sections 264 Abs 3 and 264b of the HGB: Company name Head office A&K Die Frische Küche GmbH Recklinghausen Casino Menüservice GmbH Wuppertal Christ & Wirth Haustechnik GmbH Zwenkau DS SafetyWear Arbeitsschutzprodukte GmbH Lohmar EppsteinFoils GmbH Eppstein EppsteinFoils Holding GmbH Eppstein Foiltum Holding GmbH Eppstein Hans Kämmerer GmbH Duesseldorf HK Immobilien GmbH Munich LEP Deutschland GmbH Barmstedt LNS Deutschland GmbH Leonberg Möller Klima-Kälte GmbH Schkeuditz Nutritum GmbH Cuxhaven PBT Germany GmbH Siegen Roleff GmbH & Co. KG Altbach Schaufler GmbH Laichingen Schaufler Tooling GmbH & Co. KG Laichingen SF Tooling Group GmbH Laichingen SO-CON Leit- und Steuerungstechnik GmbH Bönnigheim Stahlbau Verwaltungs-GmbH Altbach Storskogen Deutschland GmbH Munich Südwind Lebensmittel GmbH Cuxhaven Weidinger GmbH Maisach WF Plan Gesellschaft für Gebäudeplanung und Service GmbH Zwenkau Wingert Foods GmbH Cuxhaven Unless otherwise stated, the accounting policies described below have been applied consistently for all reported periods and companies included in the financial statements. Unless otherwise stated, the Group’s financial statements were prepared based on the historical cost convention. FUNCTIONAL CURRENCY AND REPORTING CURRENCY The Parent Company’s functional currency is the Swedish krona (SEK), which is also the reporting currency of the Parent Company and the Group. Consequently, the financial statements are presented in Swedish kronor. Unless otherwise stated, all amounts in this report are expressed in million Swedish kronor (SEK million). Rounding differ- ences may occur. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 90 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 1 Material accounting policies, cont. CONSOLIDATION POLICIES AND BUSINESS COMBINATIONS Subsidiaries A subsidiary is a company under the control of Storskogen Group AB, hereinafter referred to as Storskogen or the Group. Subsidiaries are recognised in accordance with the acquisition method of accounting. According to this method, the acquisition of a subsidiary is regarded as a transaction by which the Group indirectly acquires the subsidiary’s assets and assumes its liabilities. The fair value of the identifiable assets acquired, liabilities assumed and any non-controlling interests on the acquisition date is determined in the purchase price allocation. Stor- skogen uses the full goodwill method and recognises any non-controlling interests, the “minority share”, as a proportionate share of the recognised value of the subsidiary’s identifiable net assets. Option to purchase non-controlling interests If Storskogen does not acquire 100 percent of the shares in a subsidiary, Storskogen and the minority shareholders will enter into a shareholders’ agreement. The shareholders’ agreement includes provisions, terms and conditions regarding the company and its operations and, if applicable, provisions, terms and conditions related to put and call options for acquiring non-controlling interests, i.e. minority options, which after a period of three to five years after the shareholders’ agreement was entered into, give the parties the annual right to sell or acquire the minority’s shares, wholly or in part. If this right has not been exercised at maturity, it will usually be extended by one year. When the option is exercised, the purchase price is generally based on an agreed performance measure multiplied by a valuation multiple that is adjusted to reflect the entity’s net debt. According to current IFRS standards, it is not clear how put options granted to holders of non-controlling interests (“NCI put options”) should be recognised at the point in time when control of a subsidiary is acquired or after control has been acquired. As no IFRS standard applies specifically to such transactions, Storskogen has chosen the following accounting policy: As most of the minority holdings in the Group must be acquired (if the option is exercised) pursuant to the terms and conditions described above, the value of the put options, corre- sponding to the estimated consideration for the shares, is recognised in Other non-current and current liabilities instead of as a minority interest in equity. The applied policy means that non-controlling interests are recognised as acquired as at the end of each reporting period. This means that the profit/loss for the period related to non-controlling interests is presented, and that changes in liability between periods are fully recognised in equity. Contingent considerations Contingent considerations are recognised at fair value at the acquisition date and remeasured on each reporting date. The change in value is recognised in profit or loss as Other operating income or Other operating expenses. Contingent considerations are generally calculated based on the company’s average EBIT or EBITA (pursuant to the terms agreed between the parties) multiplied by a valuation multiple. Transaction costs Transaction costs, except those related to the issue of equity or debt instruments, are reported directly in operat- ing profit or loss. Goodwill In business combinations where the consideration transferred, any non-controlling interest and (for acquisitions made in stages) the fair value of a previously held equity interest exceed the fair value of any assets acquired and liabilities assumed that are reported separately, the difference is recognised as goodwill. In the event of a bargain purchase, i.e. when the difference is negative, the difference is recognised directly in profit or loss. In a business combination achieved in stages, goodwill is recognised on the date when control is obtained. Previously held interests are measured at fair value, and the change in value is recognised in profit or loss as Other operating income or Other operating expenses. If additional interests are acquired after control has been obtained, this is recognised as a transaction between owners in equity. Any remaining holdings are measured at fair value, and the value change is recognised as Other operating income or Other operating expenses in profit or loss when a divestment causes a loss of control. FOREIGN CURRENCY Foreign currency transactions In the Group, the functional currency is the currency used where the companies conduct their primary operations. Foreign currency transactions are translated into the functional currency at the exchange rate on the transaction date and recognised as Other operating income or Other operating expenses, or as financial income or financial expenses. Financial statements of foreign operations Assets and liabilities of foreign operations, including goodwill and other Group-related surplus or under values, are translated from the foreign operations’ functional currency to the Group’s reporting currency, SEK, at the exchange rate on the record date. Income and expenses of foreign operations are translated into SEK at the annual average rates that are published monthly by the Riksbank. Translation differences arising out of currency translations of foreign operations are reported in Other compre- hensive income and accumulated in the translation reserve in equity. When control of foreign operations ceases, the associated translation differences are reclassified from the translation reserve in equity to profit or loss. REVENUE The Group’s revenue is chiefly derived from the sale of goods and service engagements. The Group recognises revenue when it satisfies a performance obligation, i.e. when a promised good or service is transferred to a customer and the customer obtains control of the good or service. A performance obligation is satisfied either over time or at a point in time. Each time, it is evaluated whether the service is included in the performance obligation related to the sale of the good or constitutes a separate performance obligation. The service is a separate performance obligation if the customer can benefit from the service either on its own or together with other resources that are available, and the promise to transfer the service to the customer is separately identifia- ble from other promises in the contract. The revenue consists of the amount the Company expects to receive in exchange for goods or services transferred. The Group’s customer contracts are analysed in accordance with the five-step model found in IFRS. For the incremental costs of obtaining a contract with a customer, the Group uses the practical expedient of recognising the incremental costs as an expense if the amortisation period of the asset that the entity otherwise would have recognised is one year or less. Storskogen applies the exemption not to disclose revenue that is part of a contract that is expected to be completed within a year nor revenue that is recognised with the amount that the Group has the right to invoice when the Group has the right to consideration from a customer with an amount that directly corresponds to the value to the customer of the Group’s performance to date. Revenue from the sale of goods The Group’s contracts for the sale of goods to customers comprise both framework agreements and individual agreements. The Group’s customers are private individuals, companies and public sector entities. In the case of framework agreements, the purchase order and the framework agreement combined constitute the contract with the customer. The Group’s performance obligations comprise providing the goods specified in the contracts. Every good generally constitutes a separate performance obligation that is satisfied when control is transferred to the customer. When goods are sold, control is transferred at a point in time that generally occurs when the product is delivered. If there are specific terms of delivery (including a warranty or a right of return) in the contract, control is transferred to the customer when the risk passes according to such terms. The transaction price FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 91 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 1 Material accounting policies, cont. essentially consists of a fixed price per quantity sold. Variable transaction price elements only occur to a negligi- ble extent. The total transaction price is estimated at the value that the Group determines will be received by the Company when the contract is concluded. The transaction price is continuously updated if the circumstances on which the estimate is based should change. Invoices are usually issued upon delivery with a payment term of 30 to 90 days. Revenue from service engagements The Group’s revenue from service engagements refers to longer and shorter assignments, including consultancy, contracting and transport services. There are both framework agreements and individual agreements. In the case of framework agreements, the purchase order and the framework agreement combined constitute the contract with the customer. As the Group’s contracts include both goods and services, these are generally not deemed distinct within the context of the contract, as they are highly interdependent or highly interrelated or because the Group integrates the promised goods and services into a bundle purchased by the customer. Consequently, such contracts are generally considered to include a single performance obligation. The exception is when the contract includes the sale of a good and the installation of the same good, in which case they are treated as separate performance obligations. Performance obligations are either satisfied over time or at a point in time, depending on the nature of the contract. Service engagements are recognised over time, as the customer simultaneously receives and consumes the benefits provided by the service as the entity performs. Revenue is also recognised over time if the Group creates or enhances an asset that the customer already controls, which is common for the Group’s contracting services. Revenue from services that are recognised over time is based on the progress towards completion of each performance obligation. This revenue is then based on the proportion of costs spent compared with the total estimated costs for each performance obligation. The transaction price may comprise both fixed and variable elements. In some cases, the Group does not create an asset with an alternative use, as it is customised. If the Group is entitled to consideration for its performance, including a margin, during the entire process, revenue is recognised over time also for these obligations. If part of the transaction price is variable, only the part of the amount for which there is no significant risk of a reversal at a later stage will be included. The transaction price is continuously updated if the circumstances on which the estimate is based should change. Onerous contracts must be dealt with when an expected loss arises and it is probable that the total costs of the contract will exceed the total revenue; this loss will then be expensed immediately. Service engagements that are recognised over time in accordance with the above are invoiced during the month when the work is performed and generally have a payment term of 30 to 90 days. Other assignments for which revenue is recognised over time are invoiced based on agreed milestones, which are achieved upon completion of specific steps. The invoice generally has a payment term from 30 to 90 days. Variable remuneration Certain contracts with customers may contain a right of return, dealer discounts or quantity discounts. If it is not possible to make a reliable calculation of the revenue, the Group will defer the revenue until the uncertainty has been resolved. Such liabilities are estimated when the contract is concluded and updated thereafter. Variable consideration is recognised to the extent that it is highly probable that a significant reversal in the amount will not occur in the future. Such an assessment can be based on historical data and forecasts. Right of return When a contract with a customer includes the right to return the product within a certain period, the Group recognises this right of return based on the expected value method. Revenue that refers to the expected return will be deferred and recognised in the balance sheet under Other liabilities. A corresponding adjustment will be made in Cost of goods sold and recognised in the balance sheet, under Inventories. LEASES The Group as lessee Right-of-use assets Right-of-use assets are measured at cost less any accumulated depreciation and impairment losses and are adjusted for any remeasurement of the lease liability, except for currency translations. The cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, any initial direct costs incurred and any prepayments made at or before the commencement date of the lease, less any incentives received. The right-of-use asset will be depreciated over the shorter of the lease term and the determined useful life of the asset, which ranges from one to 20 years. Provided the Group is reasonably certain that the ownership of the underlying asset will not be assumed at the end of the lease, the right-of-use asset will be depreciated on a straight-line basis over the lease term. The Group determines the useful life of a right-of-use asset based on the determined period during which the asset will generate income. The Group management considers various factors when determining economic life and depreciation periods, such as historical experiences, the nature of the asset, market conditions and the selling price that may be received if the asset is divested. Lease liabilities At the commencement date, the Group measures the lease liability at the present value of the lease payments to be paid during the lease term. The lease term is the non-cancellable period, as well as any periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option. To calculate the present value of the lease payments, the Group uses the interest rate implicit in the lease, if that rate can be readily determined, and if not, an assessment of the incremental borrowing rate as at the commencement date is used. Application of practical exemptions The Group applies the practical exemptions for short-term leases and leases for which the underlying asset is of low value. Short-term leases are defined as leases with an initial lease term of 12 months or less after considera- tion of any options to extend the lease. In the Group, leases of low-value assets include leases of office equipment. Lease payments for short-term leases and leases of low-value assets are expensed in operating profit on a straight-line basis over the lease term. FINANCIAL INCOME AND EXPENSES Financial income consists of interest income from invested funds, dividend income, value gains from financial assets measured at fair value in profit or loss, and such profits from hedging instruments that are recognised in profit or loss for the year. Interest income from financial instruments is recognised according to the effective interest method. Dividend income is recognised when the right to receive the dividend has been established. Financial expenses include interest expenses on loans and lease liabilities, the effect of a reversal of prepaid income related to borrowings that were allocated to periods over the term of the loan, the effect of a reversal of a present value calculation for provisions, losses from value changes on financial assets valued at fair value through profit or loss, and such losses on hedging instruments that are reported in profit or loss for the year. Borrowing costs are recognised in profit or loss using the effective interest method except to the extent that they are directly attributable to the purchase, construction or production of assets that take considerable time to complete for the intended use or for sale, in which case they are included in the cost of the assets. Exchange rate gains and losses are reported net. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 92 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 1 Material accounting policies, cont. FINANCIAL INSTRUMENTS A financial instrument is any form of agreement that gives rise to a financial asset for one company and a financial liability for another company. Financial instruments that are reported as assets in the balance sheet include shares, trade receivables, other receivables and cash and cash equivalents. Those reported as liabilities include trade payables, contingent considerations and other liabilities. Classification and measurement Financial assets The Group’s financial assets are recognised at amortised cost, except for derivative instruments, which are recognised at fair value in net financial items, unless hedge accounting is applied. See Note 26, Financial risks and risk management. Fair value is determined according to the description in Note 25. Equity instruments are classified at fair value through profit or loss if held for trading. In such cases, remeasure- ments are recognised in net financial items. Financial liabilities The Group’s financial liabilities are classified at amortised cost or at fair value through profit or loss. Financial liabilities recognised at amortised cost are initially measured at fair value, including transaction costs. After initial recognition, they are measured using the effective interest method. The Group’s financial assets are recognised at amortised cost, except for liabilities related to contingent consideration, which are recognised at fair value, and derivative instruments, which are recognised at fair value in net financial income, unless hedge accounting is applied, and liabilities for minority options, which are measured at fair value in equity. See Note 26, Financial risks and risk management. Fair value is determined according to the description in Note 25. Derivatives and hedge accounting To ensure future contracted cash flows in projects where the revenue is in a foreign currency, i.e. a currency other than a company’s functional currency, the Group has entered into currency forward contracts to hedge currency risk. The Group applies hedge accounting in the form of cash flow hedges. The effective portion of the changes in the fair value of the hedging instrument is recognised in Other comprehensive income and accumulated in the hedging reserve in equity. The gain or loss associated with any ineffective portion shall be recognised immedi- ately in operating profit or loss. Any accumulated amounts in equity are reclassified to profit or loss via Other comprehensive income in the periods when the hedged item affects profit or loss, such as when the revenue is recognised, and it is recognised as part of the revenue. When a hedging instrument expires or is sold or the hedge no longer meets the requirements for hedge accounting, accumulated gains or losses remain in equity. These are entered in profit or loss when the hedged transaction is finally recognised in profit or loss. If a hedged transaction is no longer anticipated, the accumulated gains or losses are immediately reclassified from equity to profit or loss. Storskogen has entered into ISDA (International Swaps and Derivatives Association) master agreements with the counterparties to the Group’s derivative contracts. Consequently, in the event of a serious financial event, such as default, the parties to the agreement are allowed to offset receivables against liabilities. Derivatives concluded with ISDA counterparties are accounted for gross in the balance sheet. Impairment of financial assets Financial assets, other than those that are classified at fair value through profit or loss and equity instruments measured at fair value through other comprehensive income, are subject to impairment related to expected credit losses. The simplified approach is applied to trade receivables, lease receivables and contract assets. According to the simplified approach, a loss allowance is recognised for the lifetime expected credit losses for the receivable or asset. Other items included in expected credit losses are subject to an impairment model in three stages. For more details on the methods applied when calculating expected credit losses, see Note 26, Financial risks and risk management. Financial assets measured at amortised cost are recognised net of the gross amount and the loss allowance. Changes in the loss allowance are recognised in operating profit or financial perfor- mance, depending on the nature of the underlying asset. PROPERTY, PLANT AND EQUIPMENT The Group recognises property, plant and equipment at cost less accumulated depreciation and impairment losses. Gains or losses arising from the disposal of an asset constitute the difference between the sale price and the asset’s carrying value, less direct selling expenses. Gains and losses are recognised as other operating income/expenses. The following depreciation policies are applied: Depreciation is carried out on a straight-line basis over the asset’s estimated useful life. Land is not depreci- ated. Every part of an item of property, plant or equipment with an acquisition value that is significant in relation to the total cost of the asset is depreciated separately. For the Group, this chiefly refers to buildings, which are divided into elements such as structure, pipework, façades, roofs, lifts, ventilation equipment, etc. The estimated useful lives are: • Buildings 20–50 years • Machinery, fixtures and fittings and vehicles 3–10 years • Other equipment, furniture and fittings 3–10 years • Art Indefinite The depreciation methods used, residual values and useful lives are reviewed annually. INTANGIBLE ASSETS Goodwill Goodwill is stated at cost less any accumulated impairment. Goodwill is allocated to cash-generating units and tested for impairment at least annually in connection with the end of the financial year. The Group’s cash- generating units are referred to as verticals; further information on impairment testing and the Group’s verticals is provided in Note 13. Other intangible assets Other intangible assets acquired by the Group comprise customer relationships, trademarks, licences, technol- ogy, patents and rights and are recognised at cost less accumulated amortisation (see below) and impairment. Amortisation policies Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of the intangible assets unless the useful lives are considered indefinite. The useful lives of assets are reassessed at least once a year. Intangible assets with a definite useful life are amortised from the point at which they are available for use. The estimated useful lives are: • Goodwill Indefinite • Trademarks Indefinite or 3–10 years • Rights 3–10 years • Customer relationships 2–15 years • Capitalised development costs 5–7 years • Technology 3–10 years FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 93 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 1 Material accounting policies, cont. Impairment of tangible and intangible assets The Group’s recognised assets are tested for impairment on each reporting date. Goodwill and other intangible assets with an indefinite useful life or that are not yet ready for use are tested for impairment at year-end and as soon as indications arise that the asset in question has decreased in value. If an impairment loss is indicated, the recoverable amount of the asset is calculated. See also Note 13. An impairment loss is recognised when an asset or cash-generating unit’s (group of units’) carrying value exceeds the recoverable amount. Impairment expenses are divided between the Cost of goods and services sold and Selling expenses. If an impairment loss has been identified for a cash-generating unit (group of units), the impairment loss shall primarily be allocated to goodwill. The impairment loss will then be allocated pro rata to the other assets of the unit (group of units). INVENTORIES Raw materials and purchased finished and semi-finished goods are stated at the lower of cost and net realisable value. Produced finished and semi-finished goods are stated at the lower of production cost (including an appropriate proportion of indirect costs of production) and net realisable value. Market terms are applied to intra-Group trade. If the estimated net realisable value is lower than cost, a provision is made for stock obsolescence. REMUNERATION TO EMPLOYEES The Group has several pension plans, both defined benefit plans and defined contribution plans. The present value of the pension obligation and the cost of the Group’s defined benefit pension plans are determined based on advice from an independent, professionally qualified actuary based on the projected unit credit method. Defined benefit-related obligations are recognised net as a provision in the balance sheet, i.e. after deductions for the value of any plan assets. Other pension systems in the Group are defined contribution plans and mainly refer to old-age pensions. These pension premiums are salary-related and expensed regularly. See also Note 21. Incentive programmes The Company has outstanding warrant programmes for certain senior executives and other key individuals in the Group. The warrants were issued to the participants at a market value determined according to the Black-Scholes formula. If the warrants are exercised in the future, the Parent Company will receive proceeds corresponding to the strike price. New shares will be issued, and the proceeds will be reported as an increase in equity. The Company also has a share savings programme and an employee stock option programme, which give certain senior executives and other key individuals the opportunity to acquire shares in Storskogen. The share savings programme is recognised in accordance with IFRS 2 Share-based Payment. The compensation costs reported during the vesting period are based on the fair value of the Storskogen share at the grant date, taking into account performance and market conditions, with a corresponding adjustment of equity. At every reporting date during the vesting period, the expected number of granted shares is estimated, and the effect of a possible change in the previous assessment of the performance conditions and the development of the Storskogen share (market conditions) is reported in profit or loss with a corresponding adjustment of equity. Thereafter, a provision is made for estimated social security contributions related to the share programme. For further information on the incentive programmes, see Note 8. NEW STANDARDS AND INTERPRETATIONS IN 2025 Limited changes related to IAS 21 were published and entered into force in or after January 2025. The Effects of Changes in Foreign Exchange Rates, referring to situations where there is a lack of exchangeability between currencies, and IFRS 9 Financial instruments and IFRS 7 Financial instruments: Disclosures, including clarifications and further guidance regarding the time when a financial liability is settled using an electronic payment system. The Group does not believe these amendments will affect the Group or the Parent Company’s financial reports. Change in methods of presentation From the beginning of 2025, Storskogen applies the nature of expense method to the income statement instead of the function of expense method previously used. The new method of presentation has not affected the Group’s performance measures, such as operating profit (EBIT) or earnings per share. The reason for the change is that the nature of expense method provides more relevant information on the Group’s expenses and is consistent with Storskogen’s internal follow-up. NEW STANDARDS AND INTERPRETATIONS YET TO BE APPLIED BY THE GROUP Several new and amended accounting standards have not yet entered into force. These have not been applied early in the preparation of the Group’s and the Parent Company’s financial reports. The Group intends to comply with these new and amended standards upon their entry into force. IFRS 18 Presentation and disclosures in financial statements A new standard, IFRS 18 Presentation and disclosures in financial statements, was adopted by the EU in February 2026. IFRS 18 will replace IAS 1 Presentation of Financial Statements. The new standard introduces three areas of requirements aimed at increasing the comparability, transpar- ency and usefulness of financial reports. The first area involves new requirements on the structure of the state- ment of profit or loss by introducing categories and requiring companies to present two new defined subtotals (“Operating profit or loss” and “profit or loss before financing and income taxes”). The second area aims to give companies increased guidance on the aggregation and disaggregation of information in the financial state- ments and the notes. The standard also provides guidance on how to determine whether an item should be included in the primary financial statements or a note. The third area introduced by IFRS 18 involves new require- ments on certain key figures used by the Company in its external communication, referred to as manage- ment-defined performance measures (MPMs). The implementation of IFRS 18 will result in amendments to other standards as well, such as IAS 7 Statement of Cash Flows, IAS 34 Interim Financial Reporting and IAS 33 Earnings per Share. IFRS 18 enters into force on 1 January 2027 and shall be applied retroactively in annual and interim reports. Storskogen has initiated an assessment of the effects of IFRS 18 and will continue to evaluate its effects in 2026. The introduction of IFRS 18 will require a change in the structure of the Consolidated income statement and an assessment of how items should be grouped in the financial statements and the notes. IFRS 18 will also require the identification MPMs of relevance to the Group and a compilation of disclosures regarding the MPMs in a note. Other than that, no new or amended standards are expected to have a material impact on the Group’s or the Parent Company’s financial reports. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 94 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 1 Material accounting policies, cont. The Parent Company’s accounting policies The Parent Company prepared its annual accounts in accordance with the Swedish Annual Accounts Act (1995:1554) and the Swedish Corporate Reporting Board’s recommendation RFR 2 – Accounting for legal entities. Statements issued by the Swedish Corporate Reporting Board regarding listed companies are also applied. According to RFR 2, the Parent Company, in the annual report for the legal entity, shall apply all IFRS standards and statements adopted by the EU to the extent possible within the framework of the Swedish Annual Accounts Act and the Swedish Pension Obligations Vesting Act (Tryggandelagen) while taking into consideration the relation- ship between accounting and taxation. The recommendation stipulates which exceptions and additions to IFRS shall be applied. DIFFERENCES BETWEEN THE ACCOUNTING POLICIES OF THE GROUP AND PARENT COMPANY The differences between the Group and the Parent Company’s accounting policies are shown below. The accounting policies described below for the Parent Company have been applied consistently to all periods presented in the Parent Company’s financial statements. Classifications and presentation From the beginning of 2025, Storskogen applies the nature of expense method to the income statement instead of the function of expense method previously used. The reason for the change is that the nature of expense method provides more relevant information on the Group’s expenses and is consistent with Storskogen’s internal follow-up. For the Parent Company, a statement of profit or loss and a statement of other comprehensive income are presented, whereas for the Group, these two reports, taken together, constitute an income statement and a statement of other comprehensive income. Also, the reports that, for the Group, are referred to as the balance sheet and the cash flow statement are, for the Parent Company, referred to as the balance sheet and the cash flow statement. For the Parent Company, the statement of profit or loss and the balance sheet are presented according to the layout provided in the Swedish Annual Accounts Act, whereas the statement of other compre- hensive income, the statement of changes in equity and the cash flow statement are based on IAS 1 Presentation of Financial Statements and IAS 7 Statement of Cash Flows. The differences in the Parent Company’s statements compared with the Group’s statements chiefly comprise the recognition of financial income and expenses, non-current assets, equity and the existence of provisions as a separate heading in the balance sheet. Subsidiaries, associates and joint ventures In the Parent Company, participations in subsidiaries, associates and joint ventures are recognised according to the historical cost convention. Hence, transaction costs are included in the recognised value of participations in subsidiaries, associates and joint ventures. In the consolidated accounts, transaction costs attributable to subsidiaries are recognised directly in profit or loss. Contingent considerations are measured based on the probability that the consideration will be paid. Any changes in the provision/receivable are added to/deducted from the cost. In the consolidated accounts, contin- gent considerations are recognised at fair value with value changes recognised in profit or loss. Bargain purchases that correspond to future expected losses and costs are reversed in the expected periods when such losses and costs arise. Bargain purchases arising for other reasons are recognised as provisions to the extent they do not exceed the fair value of acquired identifiable non-monetary assets. The part that exceeds this value is taken up as income immediately. The part that does not exceed the fair value of acquired identifiable non-monetary assets is taken up as income systematically over a period that is estimated as the remaining weighted useful life of the acquired identifiable assets that can be amortised or depreciated. In the consolidated accounts, bargain purchases are recognised directly in profit or loss. Anticipated dividends Anticipated dividends from subsidiaries are recognised if the Parent Company has the sole right to determine the size of the dividend and has determined the size of the dividend before publishing its financial statements. Leased assets In the Parent Company, all lease payments are expensed on a straight-line basis over the term of the lease. Borrowing costs In the Parent Company, borrowing costs are charged to profit or loss in the period to which they refer. No borrow- ing costs are capitalised for assets. Tax In the Parent Company, untaxed reserves are recognised in the balance sheet without any division into equity and deferred tax liabilities, unlike in the consolidated accounts. Similarly, the Parent Company does not allocate any part of the appropriations to deferred tax expenses. Group contributions Group contributions are recognised as appropriations. Net sales The Parent Company’s net sales comprise only management services invoiced within the Group. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 95 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTES – GROUP NOTE 2 ESTIMATES AND ASSUMPTIONS IN THE FINANCIAL STATEMENTS Preparation of the financial statements in accordance with IFRS requires the Board and Group management to make assessments, estimates and assumptions that affect the application of the accounting policies and figures reported for assets, liabilities, income and expenses. The actual outcome may deviate from these estimates and judgements. Estimates and assumptions are reviewed regularly. Changes in estimates are reported in the period in which they are made if they only affect that period, or in the period in which they are made and in future periods, if the change affects both the period concerned and future periods. SIGNIFICANT JUDGEMENTS Recognition of deferred tax assets The assessment of the extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable profit will be available against which the unused tax losses or cumulated tax credits can be utilised, see Note 12. Critical assessments are also required when assessing the impact of certain legal or financial limitations or uncertainties in various tax jurisdictions. Useful lives of depreciable or amortisable assets Each reporting date, a review is made of the determined useful lives of depreciable or amortisable assets based on the period of time over which an asset is expected to be used by the Group. The uncertainty in these assess- ments is due to technical obsolescence that may change the use of the asset. ESTIMATION UNCERTAINTIES The most material sources of estimation uncertainty in the judgements and assumptions made when the consolidated accounts were prepared are presented below. Changes in assumptions may have a significant effect on the financial reports in the periods when the assumptions were changed. The Company does not consider that there is any uncertainty in estimates and judgements that entail a significant risk of a material adjustment of the carrying amount of the asset or liability within the next financial year. Impairment of non-financial assets and goodwill When testing for impairment, the recoverable amount of each asset or cash-generating unit is calculated based on expected future cash flows and an appropriate discount rate for the cash flow. There are uncertainties related to the assumptions of future cash flows and the determination of an appropriate discount rate, see Note 13. Option to purchase non-controlling interests If Storskogen does not acquire 100 percent of the shares in a subsidiary, Storskogen and the minority shareholders enter into a put and call option agreement for purchasing any non-controlling interests, i.e. minority options. The purchase price when an option is exercised is generally based on an estimated future performance measure multiplied by a valuation multiple adjusted to reflect the entity’s net debt. This value is recognised in Other non-current and current liabilities. Initial recognition is based on an appropriate discount rate. This is remeasured at every reporting date. The uncertainty in this remeasurement is related to the discount rate used and the future profitability; see Note 23 for more information. Inventories At each balance sheet date, the net realisable value of the inventories is calculated, taking the most reliable information available into account. The future sales value may be affected by future technological developments and other market-driven changes that may reduce future selling prices. Business combinations Measurement of acquired assets When the fair value is calculated, valuation techniques are used for the specific assets acquired and liabilities assumed in a business combination, see Note 5. Most importantly, the fair value of contingent consideration depends on the outcome of several variables, including the future profitability of the acquired company. NOTE 3 OPERATING SEGMENTS The Group’s operations are divided into different business areas depending on the operations’ internal follow-up and structure. These business areas are Trade, Industry and Services. The Group management has been identified as the chief operating decision maker who reviews the operations’ performance and makes decisions about the allocation of resources based on the goods produced and sold and the services provided by each business area. The business areas constitute the Group’s operating segments. The Trade business area focuses on companies with strong brands in their markets, mainly distributors and wholesalers with their own and external brands. Trade is divided into two verticals: Consumer Products and Professional Products. Trade comprises 26 business units (25) and accounted for 29 percent (28) of sales in 2025. The Industry business area focuses on traditional B2B industrial companies in heavy or medium heavy industry, manufacturing and automation. Industry is divided into three verticals: Automation, Industrial technology and Product Solutions. Industry comprises 35 business units (37) and accounted for 43 percent (42) of the sales in 2025. The Services business area focuses on service companies with strong positions in specific B2B niches. It is divided into two verticals: Business Services and Infrastructure Services. Trade comprises 53 business units (53) and accounted for 28 percent (30) of sales in 2025. Transfer pricing in the Group is on market terms. The accounting policies used in the various segments are the same as those described in Note 1 Accounting policies. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 96 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 3 Operating segments, cont. FOLLOW-UP BY SEGMENT, 2025 SEK m Trade Industry Services Group-wide items and eliminations Group total Revenue from external customers 9,588 14,319 9,232 –42 33,097 Raw materials and consumables –5,817 –7,767 –4,214 52 –17,746 Other expenses and other operating income –2,714 –4,693 –3,655 –148 –11,210 EBITDA 1,057 1,859 1,363 –138 4,141 Depreciation and impairment of property, plant and equipment –236 –418 –388 –11 –1,053 EBITA 822 1,441 975 –149 3,088 Amortisation and impairment of intangible assets –182 –316 –198 0 –697 Segment profit/loss (EBIT) 639 1,125 776 –149 2,391 Net financial items –123 –58 –27 –599 –806 Profit before tax 517 1,067 749 –748 1,585 Net sales by geographical market, SEK m Trade Industry Services Group-wide items and eliminations Revenue from external customers Sweden 4,871 4,136 6,049 -42 15,014 Denmark 474 377 521 – 1,372 Finland 303 249 90 – 642 Germany 317 1,801 516 – 2,635 Other countries within the EU 699 1,790 87 – 2,576 Norway 1,570 671 840 – 3,081 Switzerland 392 159 639 0 1,191 United Kingdom 935 2,185 358 – 3,477 USA 8 1,864 8 – 1,879 Other countries outside the EU 19 1,084 126 – 1,229 Total 9,588 14,319 9,232 -42 33,097Assets and liabilities, SEK m Trade Industry Services Group-wide items and eliminations Group total Assets 11,242 16,808 12,079 1,325 41,455 Liabilities 2,511 4,056 3,261 11,028 20,856 Non-current assets by geographical location, SEK m Trade Industry Services Group-wide items and eliminations Group total Sweden 4,962 4,971 5,921 –3 15,850 United Kingdom 960 1,889 494 1 3,343 Switzerland 344 2,373 966 7 3,690 Germany 230 746 264 2 1,241 Norway 363 204 574 0 1,141 Denmark 17 458 655 0 1,130 Other countries 412 808 497 1 1,718 Total 7,287 11,449 9,371 8 28,115 Investments by segment, SEK m Trade Industry Services Group-wide items and eliminations Group total Investments in intangible assets 55 34 20 – 109 Investments in property, plant and equipment 79 271 200 2 552 Total 134 305 220 2 661 External revenue is based on where the customers are located, and the recognised values of current assets are based on where the assets are located. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 97 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 3 Operating segments, cont. FOLLOW-UP BY SEGMENT, 2024 SEK m Trade Industry Services Group-wide items and eliminations Group total Revenue from external customers 9,576 14,416 10,254 –64 34,182 Raw materials and consumables –5,799 –7,764 –4,853 67 –18,349 Other expenses and other operating income –2,749 –4,683 –3,955 –224 –11,610 EBITDA 1,029 1,969 1,446 –221 4,223 Depreciation and impairment of property, plant and equipment –350 –416 –430 –13 –1,209 EBITA 679 1,553 1,016 –234 3,013 Amortisation and impairment of intangible assets –623 –322 –576 0 –1,521 Segment profit/loss (EBIT) 56 1,231 440 –234 1,492 Net financial items –97 –50 –31 –822 –999 Profit before tax –41 1,181 409 –1,056 493 Net sales by geographical market, SEK m Trade Industry Services Group-wide items and eliminations Revenue from external customers Sweden 4,898 4,180 6,704 –64 15,717 Denmark 374 376 568 – 1,318 Finland 266 135 84 – 485 Germany 348 1,983 541 0 2,872 Other countries within the EU 695 1,781 247 – 2,724 Norway 1,500 766 913 – 3,180 Switzerland 428 551 701 0 1,680 United Kingdom 1,046 1,937 364 – 3,347 USA 2 1,647 5 – 1,653 Other countries outside the EU 21 1,059 127 – 1,207 Total 9,576 14,416 10,254 –64 34,182Assets and liabilities, SEK m Trade Industry Services Group-wide items and eliminations Group total Assets 11,452 17,615 12,331 1,783 43,180 Liabilities 2,584 4,304 3,406 12,079 22,374 Non-current assets by geographical location, SEK m Trade Industry Services Group-wide items and eliminations Group total Sweden 5,025 5,046 5,984 2 16,057 United Kingdom 1,099 2,116 522 3 3,740 Switzerland 362 2,609 839 3 3,812 Germany 255 822 275 3 1,355 Norway 664 226 610 1 1,502 Denmark 19 476 716 1 1,212 Other countries 235 871 526 0 1,632 Total 7,658 12,167 9,472 12 29,309 Investments by segment, SEK m Trade Industry Services Group-wide items and eliminations Group total Investments in intangible assets 54 35 15 – 104 Investments in property, plant and equipment 66 388 221 – 675 Total 120 423 236 0 779 External revenue is based on where the customers are located, and the recognised values of current assets are based on where the assets are located. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 98 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 4 REVENUE FROM CONTRACTS WITH CUSTOMERS Information per vertical, SEK m 2025 2024 Consumer Products 6,413 6,252 Professional Products 3,194 3,341 Elimination within business area –19 –17 Total, Trade segment 9,588 9,576 Automation 4,710 4,483 Industrial Technology 5,359 5,354 Products 4,279 4,613 Elimination within business area –30 –35 Total, Industry segment 14,319 14,416 Contracting Services 3,922 4,275 Infrastructure Services 5,345 6,017 Elimination within business area –34 –38 Total, Services segment 9,232 10,254 Intra-Group sales, segment –42 –64 Total 33,097 34,182 From the first quarter of 2025, a new vertical structure was implemented in each business area. The change aims to refine and harmonise the structure based on the organisation of the Group’s operations. The new verticals form the Group’s cash-generating units. The change did not affect the Group’s operating segments. The change means that certain former verticals have been merged, while others remain essentially unchanged. Comparatives have been translated pursuant to the new structure. For further information on the division into verticals and related intangible assets, see Note 13. 2025 Timing of revenue recognition, SEK m Trade Industry Services Group functions Group total Goods and services transferred at a point in time 9,559 9,382 6,276 –42 25,175 Goods and services transferred over time 29 4,937 2,956 7,922 Total 9,588 14,319 9,232 –42 33,097 2024 Timing of revenue recognition, SEK m Trade Industry Services Group functions Group total Goods and services transferred at a point in time 9,470 11,480 6,756 –64 27,642 Goods and services transferred over time 107 2,936 3,498 6,540 Total 9,576 14,416 10,254 –64 34,182 Performance obligations The Group’s sales, both related to the sale of goods and service engagements, are generally invoiced with a payment term of 30 to 90 days. The Group’s performance obligations are part of contracts with an original expected duration of one year or less. In accordance with the rules in IFRS 15:121, the Group has chosen not to disclose the transaction price of these unsatisfied obligations. Contract assets, SEK m 2025 2024 Opening balance 1,673 1,568 Significant changes in the contract balances due to business combinations 2 – due to business divestments –1 –15 Changes attributable to ordinary activities –18 120 Closing balance 1,656 1,673 Contract assets comprise accrued revenue to which the Company’s right is conditional upon continued perfor- mance under the contract. Once the Company’s right to consideration becomes unconditional, the asset is recognised as a trade receivable. Contract liabilities, SEK m 2025 2024 Opening balance 1,545 1,383 Significant changes in the contract balances due to business combinations 31 – due to business divestments – –159 Changes attributable to ordinary activities –356 322 Closing balance 1,220 1,545 Contract liabilities refer to advance payments from customers where performance obligations have not been satisfied. Contract liabilities are recognised as revenue once the performance obligations in the contract are (or have been) satisfied. Storskogen applies the exemption not to disclose revenue that is part of a contract that is expected to be completed within a year nor revenue that is recognised with the amount that the Group has the right to invoice when the Group has the right to consideration from a customer with an amount that directly corresponds to the value to the customer of the Group’s performance to date. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 99 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 5 BUSINESS COMBINATIONS The Group’s acquisitions in 2025 Acquisition Operations Completion Total assets, SEK m¹⁾ Net sales, whole year 2025, SEK m Segment 2025 Sölvesborgs Sotningsdistrikt AB Add-on acquisition to SoVent Group February 2 7 Services DBS Bageriservice ApS Add-on acquisition to Danmatic May 3 28 Industry Pushpak Fabricators Add-on acquisition to Wibe August 23 50 Industry LEP AG incl. subsidiaries Platform acquisition. Development of digital catalogues and analysis tools for the healthcare sector. August 134 117 Services Carry Gently Holdings Limited, incl. subsidiaries Platform acquisition. Specialised logistics for complex and valuable products. August 49 47 Services Frameda Oy, incl. subsidiaries Platform acquisition. Distribution and brand partnerships in professional healthcare. October 87 131 Trade Svensk Inköpsservice AB Add-on acquisition to VSH Holding October 11 16 Services Tidaholms Sotningsdistrikt AB Add-on acquisition to SoVent Group October 0 1 Services Lundquist Sotningsverktyg AB Add-on acquisition to SoVent Group December 1 1 Services Total 310 398 The Group’s acquisitions in 2024 Acquisition Operations Completion Total assets, SEK m¹⁾ Net sales, whole year 2024, SEK m Segment 2024 OFM Sotning AB Add-on acquisition to SoVent Group January 1 3 Services Nimbus Direct AB (formerly ACC Kundkommunination AB) Add-on acquisition to Nimbus Gruppen January 0 7 Services IHAB Ingemar Holmberg AB Add-on acquisition to Nitro Consult February 1 0 Services Sörmlandskustens Sotning och Ventilation AB Add-on acquisition to SoVent Group September 6 11 Services Nord Svets Mek AB Add-on acquisition to VINAB, Verkstadsindustri i Norr AB October 4 6 Industry Total 12 27 1) In 2025 and 2024, this referred to total assets at the carrying value on the acquisition date. The year’s platform acquisitions were made to extend and strengthen Storskogen’s position in selected industries through new business units. Platform acquisitions add new expertise and supplementary offerings and strengthen the Group’s presence in priority areas. The add-on acquisitions were chiefly made to develop and strengthen existing business units through supplementary offerings, geographical expansion and operational synergies. For a summary of the holdings acquired in percent, see Note, 30 Participations in Group companies. In all instances, Storskogen obtained control in all acquired companies on the acquisition date. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 100 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 5 Business combinations, cont. PURCHASE PRICE ALLOCATIONS, ACQUISITIONS MADE IN 2025 The acquisitions are presented at an aggregated level by segment, as the relative amounts for the individual acquisitions are not deemed material. Fair value at the acquisition date SEK m Trade Industry Services Total Intangible assets 91 10 145 245 Other non-current assets 2 2 57 61 Deferred tax assets – 0 – 0 Inventories 21 3 0 25 Other current assets (excluding inventories and cash and cash equivalents) 25 21 38 83 Cash and cash equivalents 39 –1 102 140 Deferred tax liabilities –18 –3 –32 –53 Liabilities to creditors – –2 –6 –8 Other liabilities –20 –12 –142 –174 Acquired net assets 139 19 162 320 Goodwill 89 66 129 284 Non-controlling interests –46 – –7 –52 Total 183 85 285 552 Purchase price, including contingent consideration but excluding acquisition-related costs consisting of Cash payment 165 77 256 498 Consideration not yet paid – 7 2 10 Contingent consideration, not yet paid 18 0 27 45 183 85 285 552 Cash flow from the acquisition of subsidiaries Cash payment (included in investing activities) –165 –77 –256 –498 Acquired cash and cash equivalents (included in investing activities) 39 –1 102 140 Total effect on investing activities –126 –78 –154 –358 Transaction costs from acquisitions (included in operating activities) –1 –1 –4 –5 Net outflow, cash and cash equivalents –127 –79 –157 –363 Purchase price and assessments The purchase price for the year’s acquisitions totalled SEK 552 million, SEK 284 million of which was recognised in goodwill, including adjustments of preliminary purchase price allocations from the previous year. The effect of business combinations on the Group’s cash and cash equivalents was SEK -358 million. In addition to the business combinations mentioned above, cash flows from Acquisition of subsidiary/business in the Cash flow statement, which were SEK 390 million, were also affected by the payment of SEK 32 million in contingent considerations for acquisitions made in previous years. If all the year’s acquisitions had been completed on 1 January 2025, the contribution to the Group’s net sales would have been SEK 398 million, and the effect on the Group’s profit after tax would have been SEK 54 million. No significant changes were made in the Group’s purchase price allocations regarding the previous year’s acquisitions. Purchase price allocations for newly completed acquisitions may be adjusted based on the measurement period in IFRS 3, according to which new or corrected data may affect the final purchase price allocation. The acquisition method of accounting was used for all acquisitions. Origin of the amounts in the item Acquisition of subsidiary/business, net effect on liquidity in the Consolidated cash flow statement SEK m Impact of acquisitions made on investing activities in 2025 –358 Payment of contingent consideration, acquisitions made in previous years –32 Acquisition of subsidiary/business, net effect on liquidity –390 Goodwill In business combinations where the consideration transferred exceeds the fair value of the acquired assets and liabilities that are reported separately, the difference is recognised as goodwill. The goodwill value is primarily justified by expected synergies, the value of the employees’ expertise, established processes and organisational structures, the improved market position and other future economic benefits that cannot be identified and reported separately. On 31 December 2025, the Group’s total goodwill was SEK 18,124 million (18,455). The Group’s goodwill is tested for impairment when needed, but at least annually, per cash-generating unit. Impairment testing was performed in the fourth quarter, and no impairment losses were identified. For more information about impairment testing, see Note 13, Intangible assets. No part of the Group’s goodwill is deemed to be tax-deductible. Changes in the Group’s goodwill Opening balance Acquisition Impairment Divestment Currency effects Closing balance Goodwill 18,455 284 – –131 –485 18,124 Other identified surplus values Any values allocated to intangible assets, such as customer relationships and trademarks, were measured at the discounted value of future cash flows. Customer relationships are generally amortised over a period between three and ten years. The amortisation period is based on historical information on customer turnover, competition in the market, the degree of interaction with the customer’s operations and the significance of aftermarket services, such as maintenance and guarantees. Trademarks are not regularly amortised unless they have a definite useful life. Trademarks that are not regularly amortised are tested for impairment annually and whenever there is an indication of impairment, in accordance with IAS 36. Other surplus values identified in acquisitions made over the year or in previous years comprise buildings, technology, licences and inventories. Buildings are generally depreciated over 25 years, technology and licences are generally amortised over a period of three to ten years, while inventories are depreciated based on their turnover rate. The annual estimated amortisation of intangible assets for the year’s acquisitions was approximately SEK 31 million (0). FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 101 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 5 Business combinations, cont. Acquisition-related expenses Acquisition-related expenses refer to fees to advisers in connection with due diligence. These expenses were included in administrative expenses in profit or loss. Total acquisition-related expenses for acquisitions completed over the year were SEK 5 million (0). Contingent considerations Contingent considerations or earnouts are considerations that are generally based on the performance of the acquired company in the next few years, either as a binary outcome if a certain performance level is reached or as a ladder, where the outcome increases with the level of profits achieved in the acquired unit over a predeter- mined future accounting period. In general, contingent consideration is paid when the conditions are met within one to three years of the acquisition date. On the transaction date, the contingent consideration is recognised at fair value by calculating the present value of the probable outcome using a discount rate of 11.4 percent (10.2). The probable outcome is based on the Group’s forecasts for each entity and is dependent on the future performance of the companies, with a fixed maximum level. The discounted value of contingent considerations not yet paid for the year’s acquisitions was SEK 45 million (1), and the total liability for discounted contingent considerations was SEK 75 million (57) on 31 December 2025. Measurement of trade receivables No significant difference was identified between the fair value of the trade receivables in relation to the gross contract amounts. Non-controlling interests The Group recognised non-controlling interests at fair value based on full goodwill based on the latest known market value, which was deemed to be the same as the purchase price in each acquisition. Acquisition-related disclosures The year’s business combinations comprised both asset and share acquisitions. For information on the holdings in the acquired companies, see Note 30. Effect of acquisitions on the consolidated income statement and the consolidated statement of comprehensive income, SEK m Trade Industry Services Total Effect after the acquisition date, included in the Group’s profit or loss Sales 20 37 83 140 Profit for the year –3 4 12 13 Of which: acquisition-related costs and transaction taxes included in profit for the year¹⁾ –4 –1 – –4 Effect if the acquisitions had been completed on 1 January Sales 131 78 189 398 Profit for the year 12 6 36 54 Of which: acquisition-related costs and transaction taxes included in profit for the year¹⁾ –4 –1 – –4 1) In some cases, contributions to profit include acquisition-related costs and transaction taxes related to completed acquisitions. These costs are not related to the acquired companies’ underlying operating profit. PURCHASE PRICE ALLOCATIONS, ACQUISITIONS MADE IN 2024 The acquisitions are presented at an aggregated level by segment, as the relative amounts for the individual acquisitions are not deemed material. Fair value at the acquisition date SEK m Trade Industry Services Total Intangible assets – – – – Other non-current assets – 1 0 1 Deferred tax assets – – – – Inventories – – – – Other current assets (excluding inventories and cash and cash equivalents) – 3 5 8 Cash and cash equivalents – 0 3 3 Deferred tax liabilities – 0 0 0 Liabilities to creditors – – – – Other liabilities – –2 –3 –5 Acquired net assets – 2 5 7 Goodwill – 9 14 23 Non-controlling interests – –2 – –2 Total – 10 19 29 Purchase price, including contingent consideration but excluding acquisition-related costs consisting of Cash payment – 10 15 25 Contingent consideration, not yet paid – – 4 4 – 10 19 29 Cash flow from the acquisition of subsidiaries Cash payment (included in investing activities) – –10 –15 –25 Acquired cash and cash equivalents (included in investing activities) – 0 3 3 Total effect on investing activities – –9 –12 –21 Transaction costs from acquisitions (included in operating activities) – – 0 0 Net outflow, cash and cash equivalents – –9 –12 –22 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 102 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 5 Business combinations, cont. Effect of acquisitions on the consolidated income statement and the consolidated statement of comprehensive income, SEK m Trade Industry Services Total Effect after the acquisition date, included in the Group’s profit or loss Sales – 0 14 14 Profit for the year – –1 0 0 Effect if the acquisitions had been completed on 1 January Sales – 6 21 27 Profit for the year – 0 1 2 Changes in the Group’s goodwill Opening balance Acquisition Impairment Divestment Currency effects Closing balance Goodwill 18,763 23 –550 –40 259 18,455 NOTE 6 BUSINESS DIVESTMENTS The Group’s completed divestments in 2025 Divestments Month of divestment Annual net sales, SEK m Number of employees at divestment Business area Motavo Group AS, incl. subsidiaries December 275 415 Trade Total 275 415 The Group’s completed divestments in 2024 Divestments Month of divestment Annual net sales, SEK m Number of employees at divestment Business area AB Kranlyft, incl. subsidiaries April 196 31 Trade Dimabay GmbH, incl. subsidiaries August 128 20 Trade Bergendahls El Gruppen AB, incl. subsidiaries August 242 123 Services Elcommunication Sweden AB August 156 98 Services Swedfarm AB, incl. subsidiaries August 214 48 Trade HOJ TWS AB, incl. subsidiaries August 119 29 Trade Smederna Sverige AB August 154 80 Industry Såg- och Betongborrning i Uddevalla Aktiebolag August 83 33 Services EnRival AB, incl. subsidiaries August 154 226 Services Strigo AB, incl. subsidiaries August 261 306 Services Divestment of the operations of Vogt AG Oberdiessbach December 316 63 Industry Total 2,024 1,057 Divestments From 1 January 2025 to the divestment date, the divested businesses contributed net sales of SEK 275 million and an operating profit of SEK 22 million to the Group’s profit for 2025. The total consideration for the year’s divestment was SEK 140 million, of which SEK 122 million was received in cash and cash equivalents. The net effect on the Group’s cash flow, including divested cash and cash equivalents, was SEK 95 million. Of the total consideration, SEK 18 million was related to a receivable from the purchasers, which was reported as a financial receivable and falls due within two years. This receivable did not affect the cash flow during the period. The capital loss had an effect of SEK -7 million (-50) on the Group’s operating profit. SEK m 2025 2024 Carrying value of divested assets and liabilities Goodwill and other intangible assets 203 45 Buildings, land and equipment 15 4 Deferred tax assets and other non-current receivables 2 6 Inventories and other current receivables 33 792 Cash and cash equivalents 30 145 Non-controlling interests –45 –23 Deferred tax liabilities and other non-current liabilities –66 –257 Current liabilities –25 –310 Divested net assets 146 402 NOTE 7 AMORTISATION AND DEPRECIATION Amortisation and depreciation by asset class, SEK m 2025 2024 Intangible assets –697 –790 Land and buildings –65 –65 Machinery, vehicles and equipment –438 –426 Right-of-use assets –551 –583 Total amortisation and depreciation –1,750 –1,865 For information on the Group’s amortisation and depreciation, see Notes 13 and 14. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 103 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 8 EMPLOYEES, STAFF COSTS AND REMUNERATION TO SENIOR EXECUTIVES SALARIES AND OTHER REMUNERATION, BY SENIOR EXECUTIVES AND OTHER EMPLOYEES 2025, SEK thousand CEO, Board and senior executives Other employees Total Salaries and remuneration 54,002 5,652,201 5,706,203 (of which bonuses, etc.) (1,630) (158,573) (160,203) Social security costs 26,910 1,736,248 1,763,158 (of which pension costs) (10,330) (435,652) (445,981) Total 80,912 7,388,449 7,469,361 2024, SEK thousand CEO, Board and senior executives Other employees Total Salaries and remuneration 69,953 5,875,229 5,945,182 (of which bonuses, etc.) (2,028) (129,954) (131,982) Social security costs 29,321 1,796,938 1,826,259 (of which pension costs) (10,904) (430,395) (441,299) Total 99,274 7,672,168 7,771,442 2025 2024 Average number of employees, number of persons and gender distribution, by country Total Of which women Of which men Total Of which women Of which men Sweden 4,933 1,110 3,823 5,538 1,302 4,236 United Kingdom 1,129 144 985 1,082 135 947 Germany 869 162 707 932 175 758 Norway 824 460 364 853 486 367 Switzerland 385 124 260 447 132 315 USA 314 54 260 333 58 275 Denmark 361 119 242 322 98 224 Poland 293 99 194 317 112 205 Other countries 1,065 336 730 990 305 685 10,173 2,607 7,567 10,815 2,803 8,012 In the EU, excluding Sweden 1,820 436 1,384 1,859 431 1,428 Outside the EU 3,420 1,061 2,360 3,418 1,070 2,348 31 Dec 2025 31 Dec 2024 Number of people and gender distribution on the Board and in the Group management Women/ men Women/ men Board of Directors 5 2/3 5 2/3 Other senior executives 8 2/6 7 2/5 Total 13 12 Remuneration to the Board and senior executives, 2025, SEK thousand Basic salary and bonus Board fees2⁾ Share-based remune- ration3⁾ Pension costs Social security costs Total Annette Brodin Rampe, Chair of the Board – 1,185 – – 372 1,557 Alexander Bjärgård, Board member (included in senior executives) 2,940 – –842 592 935 3,626 Louise Hedberg, Board member – 562 – – 177 738 Johan Thorell, Board member – 647 – – 203 850 Robert Belkic, Board member – 538 – – 169 707 Christer Hansson, CEO 9,146 166 1,842 3,487 14,641 Other senior executives, 7 people 43,348 – –3,689 7,896 11,237 58,791 Total remuneration to the Board and senior executives 55,434 2,932 –4,364 10,330 16,580 80,912 Remuneration to the Board and senior executives, 2024, SEK thousand Basic salary and bonus Board fees2) Share-based remune- ration3⁾ Pension costs Social security costs Total Annette Brodin Rampe, Chair of the Board – 1,125 – – 353 1,478 Alexander Bjärgård, Board member (included in senior executives) 4,512 – 969 918 1,669 8,068 Louise Hedberg, Board member – 540 – – 170 710 Johan Thorell, Board member – 615 – – 193 808 Robert Belkic, Board member – 515 – – 162 677 Christer Hansson, CEO 7,379 2,705 1,350 3,212 14,646 Daniel Kaplan, CEO¹⁾ 8,172 – – 1,567 3,027 12,766 Other senior executives, 6 people 34,224 – 9,197 7,069 9,631 60,121 Total remuneration to the Board and senior executives 54,287 2,795 12,871 10,904 18,417 99,274 1) Daniel Kaplan resigned as CEO on 19 February 2024. Remuneration during the notice period was paid until 31 December 2024 with SEK 7,052 thousand in basic salary and SEK 1,339 thousand in pension costs. The notice period and the non-compete agreement ended on 31 December 2024. 2) Expensed Board fees. 3) The costs for 2024 and 2025 include a subsidy for participation in warrant programmes. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 104 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 8 Employees, staff costs and remuneration to senior executives, cont. POLICIES FOR REMUNERATION TO THE BOARD AND GROUP MANAGEMENT Board members According to a resolution by the shareholders, the Board received remuneration in 2025 and 2024 for their assignments on the Board and the Committees. President and CEO Remuneration to Group management consists of fixed salary, pension and benefits and share-based incentive programmes. In 2024 and 2025, remuneration was paid as subsidies for paid warrant premiums. No variable cash remuneration was paid to the CEO in 2025 and 2024. The CEO has no agreement regarding severance pay, but a notice period of nine months is applicable if the CEO resigns and 12 months if the CEO is terminated by Storskogen. Group management Remuneration to Group management consists of fixed and variable salary, pension and benefits and share- based incentive programmes. Variable remuneration consists of bonuses based on work performance. In 2024 and 2025, remuneration was paid as subsidies for paid warrant premiums. Incentive programmes As of 2021, the Company has implemented several share-based incentive programmes for senior executives and key individuals in the Group: warrant programmes (2021, 2023, 2024 and 2025), share savings programmes (2021, 2022 and 2023, respectively) and employee stock option programmes (2022, 2023, 2024 and 2025). The pro- grammes have terms of approximately three years. The purpose of the incentive programmes includes encour- aging widespread shareholding among the Company’s employees, facilitating recruitment, retaining skilled employees, increasing the common interest between employees and the Company’s shareholders, promoting the Company’s long-term value creation and increasing the motivation to meet or exceed the Company’s financial targets. The maximum number of B shares that can be subscribed for by the participants in the warrant programmes and the share savings programmes was 19,244,873 as at the reporting date, corresponding to approximately 1.1 percent of the share capital and 0.7 percent of the votes in the Company. The options were valued according to the Black-Scholes valuation formula, and the share savings programme was valued according to Monte Carlo simulation. Previously made provisions for costs for instruments that fell due with no value were reversed. Conse- quently, the employee stock option programme and the share savings programme had an effect of SEK +28.3 (-27.2) million on profit or loss for the year. As at the reporting date, the accumulated cost of the outstanding employee stock options and the share savings programmes was SEK 70.6 million (98.8). Warrant programmes Storskogen’s warrant programmes are intended for certain senior executives and other key individuals in the Group. There are 61 participants in total. The number of warrants offered to each participant depends on the participant’s position and responsibilities at Storskogen. The maximum investment permitted in warrants corre- sponds to ten percent of each participant’s annual basic salary. Each warrant can be exercised to subscribe for one B share in the Company during the subscription period. Participants are offered the warrants at market value, which is determined based on the Black-Scholes formula. The subscription price for for B-shares when exercising the warrants is provided in the table below. The complete terms and conditions of the warrants also include customary translation provisions. The Company reserves the right to repurchase warrants, such as if the partici- pant’s employment with the Company is terminated. Employee stock option programmes The employee stock option programmes are aimed at senior executives and other key employees in the Group. The number of employee stock options offered to each participant depends on the participant’s position and responsi- bilities at Storskogen, and the number of options available depends on how well the performance requirement is met, an increase between 50 and 100 percent in adjusted EBITA for the minimum to maximum exercise ratio during the vesting period. The options are subject to continued employment and a maximum value of 100 to 200 percent of the participant’s annual salary at the inception of the programme. The participant is offered the opportunity to acquire one B share in Storskogen per employee stock option at a price corresponding to the volume-weighted average price of the Company’s B share on Nasdaq Stockholm on the trading days that occur within a period of ten banking days immediately before the options are granted. Participants in the employee stock option programmes include 28 senior executives and other key individuals at the Group level. To ensure the delivery of shares pursuant to the outstanding employee stock option programmes and cover the cost of social security contributions, warrants were issued to the Company. In 2025, the 2022 employee stock option programme for certain senior executives and other key individuals in the Group expired. The outcome regarding the EBITA criterion exceeded 50 percent for the first intake but not for the second intake. According to the terms and conditions of the programme, the participants in the first intake were entitled to a grant of 25,10 percent of the maximum number of employee stock options. However, as the subscription price for exercising the employee stock options exceeded the market price for B shares at the time, no employee stock options were exercised. Consequently, the 2022 employee stock option programme expired in 2025 without any employee stock options being exercised. The table below presents the most important parameters of the warrant and employee stock option pro- grammes, including fair value and the assumptions used in the calculation. Volatility was determined based on the historical volatility for comparable companies over a period of one to five years. Option, series Warrants 2025/2028 Warrants 2024/2027 Warrants 2023/2026 Employee stock options 2025/2028 Employee stock options 2024/2027 Employee stock options 2023/2026 Issue date 23 May 2025 7 Jun 2024 16 Jun 2023 23 May 2025 7 Jun 2024 16 Jun 2023 Share price on the grant date (SEK) 10.54 8.47 10.21 10.54 8.47 10.21 Strike price per share (SEK) 16.40 11.90 17.47 16.40 11.90 17.47 Number of participants when granted 29 45 50 20 21 28 Number of outstanding warrants as at the reporting date 3,258,219 4,761,923 2,418,027 2,409,412 2,424,687 1,370,259 Expiry date 1 Jul 2028 1 Jul 2027 31 Jan 2027 1 Jul 2028 10 Jul 2027 31 Jan 2027 Expected term (months) 37 37 38 37 37 38 Risk-free interest (percent) 1.96 2.59 3.08 1.96 2.59 3.08 Expected volatility (percent) 50 60 45 50 60 45 Fair value per option, grant date (SEK) 2.13 2.59 1.76 2.09 2.60 1.76 The year’s recognised cost of the employee stock option programme (SEK thousand) – – – 930 1,685 695 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 105 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 8 Employees, staff costs and remuneration to senior executives, cont. Warrants 2025/2028 Warrants 2024/2027 Warrants 2023/2026 Number Average cost per warrant (TO) (SEK) Number Average cost per warrant (TO) (SEK) Number Average cost per warrant (TO) (SEK) Employee stock options 2025/2028, number Employee stock options 2024/2027, number Employee stock options 2023/2026, number Christer Hansson, President & CEO 473,268 2.13 571,378 2.59 166,153 1.76 – – – Other senior executives 1,041,126 2.13 1,138,600 2.59 516,459 1.76 537,867 511,460 322,855 Total 1,514,394 1,709,978 682,612 537,867 511,460 322,855 Share savings programmes The share savings programmes are intended for certain senior executives and other key individuals in the Group. No more than 70 individuals may participate. To participate, the employees must make their own investments in the Company’s B shares (“savings shares”) at the market price at Nasdaq Stockholm or allocate B shares already held to the share savings programme. Participants who retain their savings shares for the duration of the three-year term of the share savings programme and remain employed by Storskogen for the entire period can, at the end of the period, receive additional B shares (“performance shares”) free of charge if the two predetermined performance criteria (total shareholder return (“TSR”) and EBITA development) have been met. At the AGM on 17 May 2022, it was resolved to introduce a long-term incentive programme in the form of a share savings programme for senior executives and other key individuals in the Group. This programme was terminated in 2025. Participants joined the share savings programme in two intakes: first in June 2022 and then in November 2022. To participate in the share savings programme, the employees must invest their own funds in the Compa- ny’s B shares at market price on Nasdaq Stockholm or allocate already held B shares to the share savings pro- gramme (“Savings Shares”). The maximum allocation allowed to the share savings programme was 11,520 Savings Shares for the CEO and other key individuals in subsidiaries or business areas with an EBITA of SEK 20 million or more in 2021 and 9,536 Savings Shares for the CEO and other key individuals in subsidiaries or business areas with an EBITA of less than SEK 20 million in 2021. The share savings programme had a term of three years, and any participants who retained their Savings Shares and remained Storskogen employees for the entire term were entitled to additional B shares (“Performance Shares”) free of charge, based on the number of Savings Shares held. if two predetermined performance criteria related to total return and EBITA development were met at the end of the term. The total return criterion meant that the total return for shareholders in Storskogen must exceed 50 percent during the vesting period (100 percent or higher for a full grant) (the “Total Return Criterion”). The EBITA criterion meant that the increase in adjusted EBITA the last 12 months, as stated in the financial state- ments for 1 January to 31 March 2022 for participants in the first intake and the financial statements for 1 January to 30 September 2022 for participants in the second intake, and compared with adjusted EBITA for the last 12 months, as stated in the financial statements from 1 January to 31 March 2025 for participants in the first intake and the financial statements from 1 January to 30 September 2025 for participants in the second intake, must exceed 50 percent from 2022 to 2025 (100 percent or more for a full grant) (the “EBITA Criterion”). For each Savings Share held, between two and three Performance Shares could be granted, depending on the participant’s category. The outcome related to the Total Return Criterion did not exceed 50 percent for the first or second intake, so the participants in the share savings programme were not entitled to a grant of Performance Shares based on the Total Return Criterion. The outcome regarding the EBITA criterion exceeded 50 percent for the first intake but not for the second intake. According to the terms and conditions of the programme, the participants in the first intake were entitled to a grant of 12,55 percent of the maximum number of Performance Shares. In line with the terms and conditions of the share savings programme, the Board resolved that the delivery of Performance Shares should be made in cash instead of Storskogen B shares. At the AGM on 12 May 2023, it was resolved to introduce a long-term incentive programme in the form of a share savings programme for senior executives and other key individuals in the Group. To participate in the share savings programme, the employees must invest their own funds in the Company’s B shares at market price on Nasdaq Stockholm or allocate already held B shares that had not already been allocated as savings shares under LTIP 2021 or LTIP 2022 to the share savings programme (“Savings Shares”). The maximum investment allowed in Savings Shares was based on an amount corresponding to no more than 6 percent of each participant’s fixed annual salary. The programme has a term of three years, and any participants who retain their Savings Shares and remain Storskogen employees for the entire term will be entitled to additional B shares (“Performance shares”) free of charge if two (or, for some participants, three) predetermined performance criteria have been met at the end of the term. These criteria are related to total return, adjusted EBITA development and, for some participants, carbon intensity. The total return criterion means that the average annual total return to shareholders in Storskogen must be 9 percent or more during the vesting period for a full grant of Performance Shares related to the total return criterion. According to the adjusted EBITA criterion, adjusted EBITA must increase by at least 9 percent annually during the measuring period for a full grant of the Performance Shares related to the adjusted EBITA criterion. For some participants in the programme, the CEO and senior executives at the Group level, 10 percent of the Perfor- mance Shares are subject to a performance requirement related to the Company’s carbon intensity. If the carbon intensity in the 2025 financial year falls by more than 7 percent per annum on average, these participants receive a full grant of the Performance Shares related to the carbon intensity criteria. For each savings share held, between two and six Performance Shares may be granted, depending on the participant’s category. In case of a full grant of Performance hares based on actual participation in the pro- gramme, the total number of B shares in the share savings programme will amount to no more than 2,602,346 B shares, corresponding to approximately 0.2 percent of the share capital and 0.1 percent of the votes in the Company. Programme overview, this year’s change in the number of instruments Number of instruments, (shares), 31 Dec 2024 Granted in 2025 Lapsed and withdrawn in 2025 Exercised in 2025 Number of instruments, (shares), 31 Dec 2025 Share savings programme, maximum number of shares 4,016,731 – –529,690 –884,695 2,602,346 Employee stock options 13,198,523 2,476,392 –9,470,557 – 6,204,358 Warrants 7,098,675 3,414,241 –74,747 – 10,438,169 Total 24,313,929 5,890,633 –10,074,994 –884,695 19,244,873 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 106 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 9 REMUNERATION TO THE AUDITORS SEK m 2025 2024 Ernst & Young AB Audit assignment 27 30 Audit activities outside the audit assignment 3 1 Tax advice assignment 0 0 Total 30 31 Other auditors Audit assignment 12 14 Total 12 14 The audit assignment includes the statutory audit of the annual accounts and consolidated accounts as well as the administration of the Company by the Board and CEO and other audits and reviews carried out under an agreement or contract. This includes other duties that it is incumbent upon the Company’s auditor to perform as well as advice and other assistance prompted by observations during such a review or in the performance of other such duties. Of the fees to Ernst & Young, SEK 22 million (23) relates to Ernst & Young AB, of which fees for non-audit services amounted to SEK 3 million (1). Audit activities outside the audit assignment refer to other review assignments than the statutory audit, such as reviews of interim reports or the Sustainability Report (CSRD). NOTE 10 OTHER OPERATING INCOME AND EXPENSES SEK m 2025 2024 Other operating income Gains on sale of non-current assets 91 58 Foreign exchange gains 202 229 Revaluation of contingent considerations 17 11 Government grants received 25 47 Capitalised costs 9 13 Invoiced expenses 7 10 Freight revenue 105 98 Capital gains on divestment of subsidiary 0 51 Advertising revenue 15 18 Other 171 180 Total 642 714 Other operating expenses Foreign exchange losses –253 –216 Capital loss on divestment of subsidiary –7 –101 Loss on the sale of non-current assets –12 –3 Revaluation of contingent considerations –28 –23 Other –21 –10 Total –320 –353 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 107 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 11 NET FINANCIAL ITEMS SEK m 2025 2024 Assets at amortised cost Interest income, other financial assets 61 51 Total interest income according to the effective interest method 61 51 Other financial income Exchange rate fluctuations 351 216 Other 2 9 Financial income 414 276 Liabilities at amortised cost Interest expense, liabilities for bank and bond loans and to other credit institutions –663 –819 Interest expense, lease liabilities –103 –107 Interest expense, other financial liabilities –3 –9 Total interest expenses according to the effective interest method –768 –935 Other financial expenses Exchange rate fluctuations –393 –231 Other –59 –109 Financial expenses –1,220 –1,275 Net financial items –806 –999 NOTE 12 TAX Recognised in the consolidated income statement and consolidated statement of comprehensive income SEK m 2025 2024 Current tax expense (–) Tax expense for the year –502 –508 Adjustment of tax related to previous years –11 21 Total –512 –487 Deferred tax expense (–) / tax income (+) Deferred tax relating to temporary differences 110 124 Deferred tax due to changed tax rates – 0 Deferred tax income in taxable values in loss carryforwards capitalised during the year 20 15 Deferred tax expense due to the utilisation of previously capitalised taxable values in loss carryforwards –6 –6 Adjustment of deferred tax related to previous years 1 –22 Total 126 111 Total recognised tax expense in the Group –386 –376 Reconciliation of effective tax 2025 2024 % SEK m % SEK m Profit before tax 1,585 493 Tax at the tax rate applicable to the Parent Company 20.6 –327 20.6 –101 Effect of other tax rates for foreign subsidiaries 0.7 –12 2.5 –12 Net non-deductible expenses/non-taxable income 0.5 –8 49.9 –246 Utilisation of previous/new unmeasured loss carryforwards 2.1 –33 2.9 –14 Tax related to previous years 0.6 –9 0.2 –1 Effect of changes in tax rates/and tax rules – – 0.0 0 Other –0.1 2 0.4 –2 Reported effective tax 24.4 –386 76.4 –376 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 108 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 12 Tax, cont. Change in deferred taxes on temporary differences and loss carryforwards 2025, SEK m Balance as at 1 Jan 2025 Recognised in profit for the year Recognised in other comprehensive income Business combinations/ divestments Exchange rate differences Balance as at 31 Dec 2025 Property, plant and equipment –302 1 – –3 12 –291 Right-of-use assets –327 13 – – –1 –315 Intangible assets –1,067 115 – –31 43 –940 Financial assets 1 –1 – – 0 0 Inventories –5 10 – – –1 5 Trade receivables 5 1 – 0 0 5 Interest-bearing liabilities 0 – – – – 0 Pension provision 3 2 3 0 0 8 Provisions 5 –2 – – –1 2 Untaxed reserves –120 –19 – – 0 –138 Lease liabilities 348 –12 – – 1 338 Other –58 5 –1 1 –1 –54 Capitalisation/utilisation of tax loss carryforwards 23 12 – 0 4 39 –1,494 126 3 –33 56 –1,342 Change in deferred taxes on temporary differences and loss carryforwards 2024, SEK m Balance as at 1 Jan 2024 Recognised in profit for the year Recognised in other comprehensive income Business combinations/ divestments Exchange rate differences Balance as at 31 Dec 2024 Property, plant and equipment –275 –28 – 12 –10 –302 Right-of-use assets –334 5 – – 1 –327 Intangible assets –1,258 168 – 50 –27 –1,067 Financial assets 1 0 – – 0 1 Inventories –5 0 – – 0 –5 Trade receivables –1 6 – 0 0 5 Interest-bearing liabilities 13 –11 –2 – – 0 Pension provision 4 –1 3 –4 0 3 Provisions 5 –1 – – 1 5 Untaxed reserves –95 –32 – 3 3 –120 Lease liabilities 350 –2 – – 0 348 Other –62 7 0 2 –4 –58 Capitalisation/utilisation of tax loss carryforwards 26 –2 – –1 1 23 –1,632 111 1 61 –35 –1,494 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 109 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 12 Tax, cont. Unrecognised deferred tax Deferred tax assets related to loss carryforwards are recognised to the extent that it is probable that the associ- ated tax benefit can be realised through future taxable profits. Unrecognised deferred tax assets are expected to expire as follows: 2025 Expiry after 1–2 years 1 Expiry after 3–4 years 41 Expiry after 5–10 years 47 No expiry date 42 Total unrecognised tax value 131 The Group’s unrecognised deferred tax assets related to the remaining net interest expense were SEK 105 million (74). Tax loss carryforwards As at 31 December, tax loss carryforwards totalled SEK 702 million (616), of which SEK 70 million (97) referred to measured loss carryforwards. The loss carryforwards are expected to expire as follows: 2025 Expiry after 1–2 years 2 Expiry after 3–4 years 207 Expiry after 5–10 years 234 No expiry date 259 Total 702 The Group’s remaining net interest expense was SEK 522 million (390). Top-up tax Through Act (2023:875), Sweden transposed Council Directive (EU) 2022/2523 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union. The Act entered into force as of the financial year that started on 1 January 2024. The rules aim to ensure that Groups with a revenue of EUR 750 million or more shall have a minimum effective tax rate of at least 15 percent in each tax jurisdiction in which it operates, including Sweden. Transitional relief has been introduced based on the Group’s country-by-country reporting obligations. If the criteria are met, no top-up tax will be charged for the tax jurisdiction in question, and there is no need to make a complete computation of top-up tax. The Group has aggregate revenues in excess of EUR 750 million. However, based on the preliminary coun- try-by-country reporting for 2025, the majority of jurisdictions are deemed to fall within the scope of the transi- tional relief rule. In the two jurisdictions where these rules do not apply, the exposure to income taxes under Pillar Two is deemed immaterial. Consequently, no income tax under Pillar Two was reported. Recognition of deferred tax Pursuant to Article 88A of the reporting standard IAS 12 Income Taxes, which was introduced in May 2023 and applies until further notice, deferred items related to top-up tax shall not be recognised. This is an exception to the otherwise applicable principles for recognising deferred tax. The Group will apply this exception and will, therefore, not recognise deferred items related to top-up tax to the extent that such items arise. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 110 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 13 INTANGIBLE ASSETS Accumulated cost, SEK m Capitalised expenditure Rights and other Goodwill Trademarks Customer relationships Total Opening balance, 1 Jan 2024 172 524 18,809 2,275 5,205 26,985 Business combinations – – 23 – – 23 Investments 44 59 – 1 – 104 Divestment of subsidiary/business 0 –9 –40 –1 –136 –187 Disposals and retirements – –9 0 0 0 –9 Reclassifications –10 2 0 0 – –7 Translation effects 2 21 260 43 109 435 Closing balance, 31 Dec 2024 208 589 19,052 2,318 5,178 27,344 Opening balance, 1 Jan 2025 208 589 19,052 2,318 5,178 27,344 Business combinations – 1 236 26 210 472 Investments 39 69 0 0 – 109 Divestment of subsidiary/business – – –83 –41 –73 –197 Disposals and retirements –5 –2 –7 –6 0 –21 Reclassifications –10 48 0 – 0 38 Translation effects –3 –37 –486 –82 –190 –800 Closing balance, 31 Dec 2025 229 668 18,711 2,214 5,124 26,945 Accumulated amortisation and impairment, SEK m Capitalised expenditure Rights and other Goodwill Trademarks Customer relationships Total Opening balance, 1 Jan 2024 –41 –160 –47 –24 –1,730 –2,003 Impairment for the year –1 –7 –550 –74 –99 –731 Amortisation for the year –35 –92 – –10 –653 –790 Divestment of subsidiary/business 0 5 0 1 136 143 Disposals and retirements – 9 – – –1 7 Reclassifications 1 7 0 0 0 7 Translation effects –2 –9 0 –1 –28 –40 Closing balance, 31 Dec 2024 –77 –248 –598 –108 –2,376 –3,407 Opening balance, 1 Jan 2025 –77 –248 –598 –108 –2,376 –3,407 Business combinations – –1 – – – –1 Amortisation for the year –31 –105 – –9 –551 –697 Divestment of subsidiary/business – – 0 0 34 34 Disposals and retirements 5 1 7 6 0 20 Reclassifications 11 –1 0 – 0 10 Translation effects 3 20 3 2 77 105 Closing balance, 31 Dec 2025 –89 –334 –588 –108 –2,816 –3,935 Carrying amounts, SEK m Capitalised expenditure Rights and other Goodwill Trademarks Customer relationships Total As at 31 Dec 2024 131 341 18,455 2,209 2,801 23,937 As at 31 Dec 2025 140 334 18,124 2,105 2,308 23,010 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 111 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 13 Intangible assets, cont. IMPAIRMENT TESTING OF CASH-GENERATING UNITS THAT INCLUDE GOODWILL Goodwill and other intangible assets with an indefinite useful life are tested for impairment by cash-generating unit. In 2025, Storskogen’s cash-generating units comprised 7 verticals (14) that were aggregated into segments as follows: Goodwill and trademarks 2025 Carrying amount, SEK m Goodwill Trademarks Business Services 3,726 223 Infrastructure Services 3,266 189 Total, Services segment 6,992 412 Automation 1,893 258 Industrial Technologies 2,050 128 Product Solutions 2,284 770 Total, Industry segment 6,227 1,156 Consumer Products 3,675 469 Professional Products 1,230 68 Total, Trade segment 4,905 537 Total 18,124 2,105 When tested for impairment in 2025, the Group’s recognised goodwill and other intangible assets with indefinite useful lives were allocated to seven verticals with subsidiaries considered to constitute cash-generating units. At the end of 2025, the Services segment had two verticals, the Industry segment had three verticals, and Trade segment had two verticals. Goodwill and other intangible assets with an indefinite useful life are tested annually for impairment, by cash-generating unit, and their recoverable amounts, i.e. their value in use, are calculated. UPDATED DIVISION INTO VERTICALS From the first quarter of 2025, a new vertical structure was implemented in each business area. This change was intended to harmonise the structure with how operations are organised and followed up in the Group. The new verticals form the Group’s cash-generating units. The change did not affect the Group’s operating segments. The change means that certain former verticals have been merged, while others remain essentially unchanged. Goodwill and trademarks 2024 Carrying amount, SEK m Goodwill Trademarks Contracting Services 464 7 Infrastructure 1,458 11 Installation 1,399 179 Logistics 841 4 Engineering Services 1,208 55 Digital Services 944 44 HR and Competence 688 104 Total, Services segment 7,002 404 Automation 1,955 277 Industrial Technology 2,143 141 Products 2,303 789 Total, Industry segment 6,400 1,208 Home and Living 1,762 296 Niche Businesses 1,028 73 Health and Beauty 1,535 147 Sport, Clothing and Accessories 727 81 Total, Trade segment 5,052 597 Total 18,455 2,209 VALUE IN USE The value in use is the Group’s share of the present value of the future cash flows expected to be generated by the units. The cash flow projections are based on reasonable and verifiable assumptions that represent Storskogen’s best estimate of the range of economic conditions that will exist, and great weight is given to external evidence. The cash flow projections are based on the most recent forecasts approved by the Group management, which are based on the subsidiaries’ budgets and forecasts and aggregated per vertical. These include the budget for the following year and a forecast for a period of four years. Cash flows after the forecast period are calculated based on an assumption of a long-term growth rate of 2 percent (2) per year after the forecast period. Projected future cash flows do not include payments made or received in the financing activities. The estimated value in use is compared with the unit’s carrying value. Important assumptions in this calculation include the discount rate, growth rate, adjusted EBITA margin, development of working capital and investment needs. Various assumptions were used, as each vertical in itself is an independent unit with unique conditions. Important assumptions are described below. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 112 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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IMPORTANT ASSUMPTIONS IN THE CALCULATION OF THE VALUE IN USE PER VERTICAL The present value of future cash flows, after tax, per vertical was calculated using a discount rate. Storskogen chose to calculate the present value of free cash flow. The discount rate reflects current market assessments of the time value of money and the specific risks specific to each vertical. The discount rate does not reflect any risks that were considered when the future cash flows were estimated. The calculation of the discount rate is based on the Company’s weighted average cost of capital, its incremental borrowing rate and other market borrowing rates, independently of Storskogen’s capital structure. The discount rate (pre-tax) used varies between segments. In the Industry segment, it was 9.8 percent (9.7), in the Trade segment, it was 9.7 percent (9.6), and in the Services segment, it was 9.1 percent (9.1). A tax rate of 20.6 percent was used for all segments. A long-term growth rate of 2 percent was assumed for all three segments. For the forecast periods, an adjusted EBITA margin was assumed for each vertical that was adapted to the outcome in previous periods and to specific expectations. The calculation shows that the value in use exceeds the carrying value in all verticals. No impairment was identified. SENSITIVITY ANALYSIS The value in use in each vertical depends on assumptions made when calculating discounted cash flows. Based on the above assumptions, the margin between the value in use and the carrying value was approximately SEK 13,600 million. A sensitivity analysis shows that the value of goodwill and other intangible assets with an indefinite useful life can be defended for all verticals. Even if the long-term growth were one percentage point lower, the adjusted EBITA margin would be one percentage point lower, or the discount rate would be one percentage point higher. An isolated change in long-term growth by one percentage point would affect the total value in use by approximately SEK 3,800 million, and a corresponding change in the adjusted EBITA margin would affect it by approximately SEK 2,100 million, and a corresponding change in the discount rate would have an effect of approxi- mately SEK 5,500 million. If all these effects simultaneously deteriorated by one percentage point, the value in use would decrease by approximately SEK 9,800 million, and the remaining margin between the value in use and the carrying amount would be approximately SEK 3,800 million. Note 13 Intangible assets, cont. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 113 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 14 PROPERTY, PLANT AND EQUIPMENT Accumulated cost, SEK m Land and buildings Machinery, vehicles and equipment Construction in progress Art Total Opening balance, 1 Jan 2024 2,711 5,364 175 1 8,251 Business combinations – 2 – – 2¹⁾ Investments 84 431 160 – 675 Divestment of subsidiary/business –43 –126 – – –169 Disposals and retirements –89 –218 –1 – –309 Reclassification 89 123 –222 – –10 Translation effects 75 116 2 0 192 Closing balance, 31 Dec 2024 2,827 5,691 114 0 8,633 Opening balance, 1 Jan 2025 2,827 5,691 114 0 8,633 Business combinations – 29 – – 29¹⁾ Investments 37 422 93 – 552 Divestment of subsidiary/business – –29 –2 – –31 Disposals and retirements –12 –258 –1 – –271 Reclassification 15 25 –93 – –53 Translation effects –140 –208 –3 0 –352 Closing balance, 31 Dec 2025 2,725 5,673 109 0 8,508 Accumulated depreciation, SEK m Land and buildings Machinery, vehicles and equipment Construction in progress Art Total Opening balance, 1 Jan 2024 –1,013 –3,522 – – –4,534 Business combinations – –1 – – –1¹⁾ Impairment for the year –50 –85 – 0 –135 Depreciation for the year –65 –426 – – –491 Divestment of subsidiary/business 75 125 – – 200 Disposals and retirements 25 180 – – 206 Reclassification 0 2 – – 2 Translation effects –24 –74 – – –98 Closing balance, 31 Dec 2024 –1,051 –3,801 – 0 –4,852 Opening balance, 1 Jan 2025 –1,051 –3,801 – 0 –4,852 Business combinations – –17 – – –17¹⁾ Depreciation for the year –65 –438 – –502 Divestment of subsidiary/business – 16 – – 16 Disposals and retirements 7 208 – – 214 Reclassification 0 11 – – 12 Translation effects 48 137 – – 185 Closing balance, 31 Dec 2025 –1,061 –3,882 – 0 –4,943 Carrying amounts, SEK m Land and buildings Machinery, vehicles and equipment Construction in progress Art Total As at 31 Dec 2024 1,776 1,891 114 0 3,781 As at 31 Dec 2025 1,664 1,791 109 0 3,565 1) The net value of assets in business combinations was SEK 13 million (1) in 2025. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 114 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 15 INVENTORIES SEK m 31 Dec 2025 31 Dec 2024 Raw materials and consumables 2,090 2,219 Work in progress 177 190 Finished goods and goods for resale 2,061 1,849 Advance payments to suppliers 54 88 Total 4,382 4,346 The cost of inventories recognised in the consolidated income statement in the item raw materials and consum- ables was SEK 17,746 million (18,349). Over the period, write-downs of inventories to net realisable value of SEK 24 million (28) were carried as an expense. There were no reversals of previous write-downs in 2025 or 2024. NOTE 16 PREPAID EXPENSES AND ACCRUED INCOME SEK m 31 Dec 2025 31 Dec 2024 Prepaid insurance premiums 41 44 Prepaid expenses for computers and software 46 59 Prepaid licence costs 39 11 Prepaid goods and services 58 73 Accrued, non-invoiced income 125 131 Accrued supplier bonus 50 57 Other prepaid expenses and accrued income 139 145 Total 499 519 NOTE 17 TRADE RECEIVABLES SEK m 31 Dec 2025 31 Dec 2024 Trade receivables 4,219 4,137 Allowance for expected credit losses –80 –74 Total 4,140 4,063 For a description of the allowance for expected credit losses, see Note 26. NOTE 18 CASH AND CASH EQUIVALENTS SEK m 31 Dec 2025 31 Dec 2024 Cash and cash equivalents 1,332 1,899 Total according to the balance sheet 1,332 1,899 Cash and cash equivalents are subject to the expected credit losses model. Considering the credit rating of the counterparties, expected credit losses are considered immaterial. See Note 26. NOTE 19 EQUITY SHARE CAPITAL As at 31 December 2025, the registered share capital was 125 million A shares with a quotient value of SEK 0.00051 per share (0.00051) and 1,562 million B shares with a quotient value of SEK 0.00051 per share (0.00051). The A shares confer ten votes per share, and the B shares confer one vote per share. As at 31 December 2025, the registered share capital was SEK 860,230 (860,230). 31 Dec 2025 31 Dec 2024 Number of shares A shares B shares A shares B shares Subscribed for and paid shares Issued as at 1 Jan 142,001,374 1,544,723,845 148,001,374 1,521,476,679 Conversion of loans in connection with acquisitions of companies – – – 16,561,182 Warrants – – – 685,984 Conversion of A shares to B shares –17,000,000 17,000,000 –6,000,000 6,000,000 Issued as at 31 December 125,001,374 1,561,723,845 142,001,374 1,544,723,845 Pursuant to provisions in the Company’s Articles of Association, there are no preferential rights to dividends; every share in Series A and Series B confers the same right to a share of the Company’s assets and profits. In 2025, Storskogen repurchased own shares within the limits of the adopted repurchase programme. As at 31 December 2025, Storskogen held 8,065,000 B shares as treasury shares. Treasury shares do not confer a right to dividends or votes. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 115 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 19 Equity, cont. Dividends After the reporting date, the Board proposed a dividend to the Company’s shareholders of SEK 185 million in total for the 2025 financial year, corresponding to SEK 0.11 per share for A and B shares. The dividend is subject to approval at the Annual General Meeting to be held on 6 May 2026. RESERVES SEK m 31 Dec 2025 31 Dec 2024 Translation reserve Opening translation reserve 1,059 659 Translation effects for the year –899 400 Closing translation reserve 160 1,059 Hedging reserve Opening hedging reserve –83 –91 Revaluations recognised in Other comprehensive income, Parent Company shareholders 19 10 Tax attributable to revaluations for the year, Parent Company shareholders –4 –2 Closing hedging reserve –67 –83 Total reserves 93 976 Translation reserve The translation reserve includes all exchange rate differences that arise when translating financial statements from foreign operations with a functional currency other than the Group’s presentation currency. The Group’s presentation currency is Swedish kronor (SEK). Translation differences are recognised in Other comprehensive income and accumulated in equity. When foreign operations are divested, the accumulated translation differences are reclassified from equity to profit or loss for the year. Hedging reserve The hedging reserve includes the effective portion of value changes on hedging instruments in cash flow hedges related to future transactions. Retained earnings including profit for the year Retained earnings comprise the previous year’s retained earnings and profit for the year, adjusted for dividends paid during the year and options to repurchase own shares. Retained earnings also include the remeasurement of defined benefit pension plans and associated tax. NOTE 20 INTEREST-BEARING LIABILITIES The Group’s interest-bearing liabilities are listed below. For additional information on the maturity structure and the Company’s exposure to interest rate risk and the risk of exchange rate fluctuations, see Note 26. SEK m 31 Dec 2025 31 Dec 2024 Non-current liabilities Interest-bearing liabilities, carrying amount 8,925 8,575 Maturity within 2 years 6,586 7,254 Maturity within 2–5 years 2,338 1,318 Maturity in 5 years or later 2 3 Lease liabilities, carrying amount 1,102 1,114 Maturity within 2–5 years 735 704 Maturity in 5 years or later 368 411 Total carrying amount 10,028 9,690 Current liabilities Liabilities to credit institutions 266 1,321 Hire-purchase agreements 102 101 Lease liabilities 449 492 Total 817 1,915 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 116 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 21 PENSIONS The Group has both defined benefit and defined contribution pension plans. The most significant defined benefit plans are in Sweden and Switzerland and chiefly refer to old-age pension. The present value of the pension obligation and the cost of the Group’s defined benefit pension plans are determined based on advice from an independent, professionally qualified actuary based on the projected unit credit method. Other pension systems in the Group are defined contribution plans and mainly refer to old-age pensions. These pension premiums are salary-related and expensed regularly. DEFINED BENEFIT PENSIONS Defined pension plans primarily include old-age pensions, but disability pensions and various insurance policies are also included. In Sweden, pension commitments are secured through PRI, a mutual insurance company that provides credit insurance and pension administration services. The size of the pension depends on the final salary and the number of years in the plan. Pension obligations in Switzerland are secured through funds in retirement benefit plans. Benefits are earned based on age, salary and years in the plan. The plan is financed by contribu- tions made by the employee and the employer. The plan’s assets are invested in eligible insurance policies, bonds, shares, real estate and cash. The defined benefit plans are not the Group’s main solution; they merely supplement the defined contribution plans. Of the Group’s current subsidiaries, WIBE has the largest defined benefit pension obligation in the Group, and its net pension liability is SEK 102 million (102) related to provisions in Sweden. The net pension liability of LNS is SEK 33 million (60) in Switzerland. WIBE and LNS in Switzerland account for 66 percent (65) of the Group’s defined benefit pension liability. In 2026, it is expected that the costs for all defined benefit pension plans will be SEK 34 million (43). The pension obligation for white-collar workers in Sweden (ITP) is partly secured through insurance policies in Alecta. The pension plan secured in Alecta is reported as a defined contribution plan, as the Group cannot obtain sufficient data to report its share of the pension plan as a defined benefit plan. Alecta’s surplus may be distributed to the policyholders and/or the insured. At the end of 2025, Alecta’s surplus in the form of its collective consolida- tion ratio was preliminarily set to 167 percent (162). The collective consolidation ratio is the market value of Alecta’s assets as a percentage of the insurance obligations calculated according to Alecta’s actuarial calculations and assumptions, which are inconsistent with IAS 19. Premiums paid to Alecta this year amounted to SEK 37 million (39). In 2026, it is estimated that SEK 39 million (17) will be paid in premiums to Alecta. As at 31 December 2025, the average duration of the pension obligations in WIBE was 16.7 years (17.5), and in LNS, it was 10 years (10). Amounts recognised in the consolidated balance sheet 31 Dec 2025 31 Dec 2024 SEK m Sweden Switzerland Other Total Sweden Switzerland Other Total Present value of pension obligation 149 567 43 759 150 615 47 813 Fair value of plan assets –3 –543 –9 –555 –3 –550 –9 –562 Net liability presented in the balance sheet 146 41 34 221 147 78 39 263 Net asset presented in the balance sheet – –18 – –18 – –13 – –13 Net change in pension obligation 31 Dec 2025 31 Dec 2024 SEK m Sweden Switzerland Other Total Sweden Switzerland Other Total Net at the beginning of the year 147 65 39 251 145 65 36 247 Business combinations/divestments – –1 0 –1 – –19 – –19 Net cost 10 26 3 39 9 22 6 37 Payments –7 –21 –2 –29 –7 –21 –4 –32 Actuarial gains/losses in Other comprehensive income –4 –44 –2 –50 0 17 –1 16 Exchange rate difference – –2 –3 –5 – 1 1 2 Net at year-end 146 23 34 204 147 65 39 251 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 117 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 21 Pensions, cont. Amounts recognised in the consolidated income statement, defined benefit pensions 31 Dec 2025 31 Dec 2024 SEK m Sweden Switzerland Other Total Sweden Switzerland Other Total Costs related to service in the current period 6 26 2 33 3 22 5 31 Net interest income 5 0 1 6 5 0 1 6 Recognised in profit or loss 11 26 3 39 9 22 6 37 Recognised in Other comprehensive income –4 –44 –2 –50 0 17 –1 16 Change in the present value of defined benefit obligations 31 Dec 2025 31 Dec 2024 SEK m Sweden Switzerland Other Total Sweden Switzerland Other Total Defined benefit pension obligation at the beginning of the period 150 615 47 813 149 712 43 904 Business combinations/divestments – 37 0 37 – –105 – –105 Costs related to service in the current period 6 25 2 33 3 21 5 29 Interest expense 5 6 1 12 5 10 1 16 Actuarial losses (+)/gains (–) –4 –42 –2 –48 0 22 –1 21 Contributions from the plan’s participants – 18 – 18 – 18 –1 17 Payments from the plan –7 –44 –2 –53 –7 –20 –2 –29 Redemption/reclassification to defined contribution pensions – –21 – –21 – – – – Settlement – 0 – 0 – –52 0 –52 Exchange rate difference – –27 –4 –31 – 10 1 11 Defined benefit pension obligation at the end of the period 149 567 43 759 150 615 47 813 Of the total actuarial losses, the change due to demographic assumptions was SEK -4.5 million (-0.5), the change due to financial assumptions was SEK -19.2 million (39), and the change due to experience-based adjustments was SEK -25.2 million (-17). FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 118 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 21 Pensions, cont. Changes in the fair value of plan assets 31 Dec 2025 31 Dec 2024 SEK m Sweden Switzerland Other Total Sweden Switzerland Other Total Fair value of assets at the beginning of the period 3 550 9 562 3 657 7 667 Business combinations – 38 – 38 – –92 – –92 Return beyond expectations – 2 1 3 – –3 1 –3 Interest income – 6 0 6 – 10 0 10 Contribution from employer – 21 0 22 – 22 2 24 Contributions from employees – 18 – 18 – 18 – 18 Payments from the plan – –44 0 –44 – –18 –2 –20 Administrative fees – –1 – 0 – –1 – –1 Redemption/reclassification to defined contribution pensions – –5 – –5 – – – – Assets distributed upon settlement – –17 – –17 – –52 – –52 Exchange rate difference – –24 –1 –26 – 9 0 9 Fair value of assets at the end of the period 3 543 9 556 3 550 9 562 Plan assets comprise the following: 31 Dec 2025 31 Dec 2024 % Sweden Switzerland Other Total Sweden Switzerland Other Total Assets invested with insurance companies 0 1 – 1 0 2 – 2 Assets invested in shares – 41 – 41 – 35 – 35 Assets invested in bonds – 19 – 19 – 24 – 24 Assets invested in real estate – 22 – 22 – 22 – 22 Assets invested in cash and cash equivalents – 7 2 9 – 6 2 7 Other investments – 8 – 8 – 10 – 10 Total 0 98 2 100 0 98 2 100 Of the assets, SEK 407 million (423) are listed assets. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 119 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 21 Pensions, cont. Important actuarial assumptions 31 Dec 2025 31 Dec 2024 Sweden Switzerland Other Sweden Switzerland Other Main actuarial assumptions used on the reporting date: Discount rate, % 3.5 1.2 3.63 3.5 1.0 2.8 Inflation, % 1.7 1.0 2.05 1.8 1.0 2.0 Expected salary increases, % 3.4 1.5 0.95 3.4 1.5 1.6 Mortality assumptions Actuarial tables used DUS23 100% x BVG 2020 G Primarily RT Heubeck 2018 G but also RG 48 and Taiwan Individual Annuity Table DUS23 100% x BVG 2020 G Primarily RT Heubeck 2018 G but also RG 48 and Taiwan Individual Annuity Table The assumptions for Other are shown as weighted average values based on the closing balance of the net liability. Mortality assumptions in the most significant plans 31 Dec 2025 31 Dec 2024 Women Men Women Men WIBE (Sweden), life expectancy at the age of 65: Current pensioners, born in the 1950s 24.4 22.3 24.4 22.3 Future pensioners, born in the 1970s 25.6 24.3 25.6 24.3 LNS (Switzerland), life expectancy at the age of 65: Current pensioners, currently 65 years old 24.8 23.0 24.7 23.0 Future pensioners, currently 45 years old 26.8 25.3 26.7 25.2 Sensitivity analysis The table below shows the effect on the value of the pension obligations in the most significant plans and in the event of an isolated change in each assumption. SEK m Change in assumption, % Effect SEK m Change in assumption, % Effect SEK m WIBE (Sweden) Discount rate –0.5 9 +0.5 –8 Future salary increases –0.5 –2 +0.5 2 Inflation –0.5 –8 +0.5 9 Life expectancy –1 year –4 +1 year 4 LNS (Switzerland) Discount rate –0.5 24 +0.5 –23 Future salary increases –0.5 –6 +0.5 6 Inflation –0.5 –13 +0.5 13 Life expectancy –1 year –7 +1 year 7 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 120 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 22 PROVISIONS SEK m 31 Dec 2025 31 Dec 2024 Provisions that are non-current liabilities Severance pay, furlough pay 2 1 Guarantee commitments 51 58 Restoration costs 11 7 Onerous contracts – 3 Other 11 12 Total 74 81 SEK m 31 Dec 2025 31 Dec 2024 Total carrying amount at the beginning of the period 81 92 Acquisitions 7 0 Provisions made during the period 11 32 Amounts claimed during the period –9 –6 Unused amounts reversed during the period –11 –35 Companies divested during the period – –3 Translation difference –4 2 Total carrying amount at the end of the period 74 81 Of which non-current portion of provisions 40 33 Of which current portion of provisions 35 48 Guarantees Provisions made for guarantees for products and services are based on calculations made using historical data or, in specific cases, based on individual assessments. Other This item includes provisions that are not classified as guarantees and restoration expenses, such as remunera- tion to employees. NOTE 23 OTHER LIABILITIES SEK m 31 Dec 2025 31 Dec 2024 Other non-current liabilities Contingent considerations¹⁾ 50 42 Option to purchase non-controlling interests 294 1,086 Other 36 39 Total 380 1,167 Other current liabilities VAT liability 467 386 Employee withholding tax 95 104 Contingent considerations¹⁾ 25 15 Option to purchase non-controlling interests 1,178 797 Liability, grants received 3 4 Liability to employees 45 46 Advance payments from customers 46 44 Other 16 32 Total 1,876 1,428 1) For more information on contingent considerations, see Note 25, Financial instruments. Changes in options to purchase non-controlling interests, SEK m 2025 Opening balance Acquisition Net acquisition or sale of minority interests Revaluation/ discounting Currency effects Closing balance 1,883 52 –464 83 –81 1,473 See Note 1 for further information on the measurement methodology for options to purchase non-controlling interests. For a maturity analysis of current and non-current liabilities, see Note 26. NOTE 24 ACCRUED EXPENSES AND DEFERRED INCOME SEK m 31 Dec 2025 31 Dec 2024 Staff costs 957 955 Interest expense 47 47 Consultancy fees 52 61 Commission, discounts and bonuses to customers 282 248 Cost of materials 112 96 Deferred income 85 95 Other accrued expenses 177 238 Total 1,712 1,739 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 121 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 25 FINANCIAL INSTRUMENTS MEASUREMENT OF FINANCIAL ASSETS AND LIABILITIES As at 31 Dec 2025 SEK m Financial assets/liabilities at amortised cost Financial assets/liabilities at fair value through profit or loss Financial assets/liabilities at fair value through other comprehensive income¹⁾ Total carrying amount Financial assets Financial investments – 49 – 49 Non-current receivables 227 – 1 229 Trade receivables 4,140 – – 4,140 Other receivables²⁾ 871 6 – 876 Current investments – 0 – 0 Cash and cash equivalents 1,332 – – 1,332 Total 6,569 55 1 6,625 Financial liabilities Contingent consideration³⁾ – 75 – 75 Liabilities to credit institutions4⁾ 4,261 15 38 4,314 Bonds4⁾ 4,721 – – 4,721 Other non-current liabilities 36 – 294 331 Hire-purchase agreements4⁾ 259 – – 259 Trade payables 2,430 – – 2,430 Other current liabilities5⁾ 2,384 – 1,178 3,563 Total 14,091 90 1,510 15,692 As at 31 Dec 2024 SEK m Financial assets/liabilities at amortised cost Financial assets/liabilities at fair value through profit or loss Financial assets/liabilities at fair value through other comprehensive income¹⁾ Total carrying amount Financial assets Financial investments – 37 – 37 Non-current receivables 269 – 1 270 Trade receivables 4,063 – – 4,063 Other receivables²⁾ 832 15 – 847 Current investments – 0 – 0 Cash and cash equivalents 1,899 – – 1,899 Total 7,063 52 1 7,116 Financial liabilities Contingent consideration³⁾ – 57 – 57 Liabilities to credit institutions4⁾ 4,357 5 57 4,419 Bonds4⁾ 5,312 – – 5,312 Other non-current liabilities 39 – 1,086 1,125 Hire-purchase agreements4⁾ 267 – – 267 Trade payables 2,311 – – 2,311 Other current liabilities5⁾ 2,355 – 797 3,152 Total 14,640 62 1,940 16,642 1) The total liability measured through other comprehensive income was SEK 38 million (57) and referred to interest rate derivati ves. The total liability measured through equity was SEK 1,473 million (1,883) and referred to the Group’s minority option liability. 2) Refers to the lines Prepaid expenses and accrued income and Other receivables in the consolidated balance sheet. 3) Included in the items Other non-current liabilities and Other (current) liabilities in the consolidated balance sheet. 4) Taken together, the three lines constitute the total of the Group's non-current and current interest-bearing liabilities in the consolidated balance sheet. 5) Comprises selected financial instruments from the line Other liabilities in the Consolidated balance sheet and Accrued expenses and deferred income in its entirety. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 122 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 25 Financial instruments, cont. The assets’ maximum credit risk consists of the net amounts of the reported values in the table above. The Group has not received any pledged collateral for net financial assets. For information on the Group’s lease liabilities, see Note 27. FAIR VALUE MEASUREMENT Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The table below shows financial instruments measured at fair value based the classification in the fair value hierarchy. The different levels are defined as follows: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 Observable inputs for the asset or liability other than the quoted market prices included in level 1, either directly (i.e. as quoted market prices) or indirectly (i.e. derived from quoted market prices) Level 3 Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs) FAIR VALUE FOR DISCLOSURE PURPOSES For assets and liabilities measured at amortised cost, the carrying value is considered a good approximation of the fair value. Considering the short interest rate fixation periods and maturities of the items, estimates show that there is no significant difference between amortised cost and fair value. THE GROUP’S MEASUREMENT OF FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE As at 31 Dec 2025 SEK m LEVEL 1 LEVEL 2 LEVEL 3 OTHER¹⁾ Difference between fair and carrying value, related to quoted bonds TOTAL Financial assets Financial investments – – 49 – – 49 Non-current receivables – 1 – 227 – 229 Trade receivables – – – 4,140 – 4,140 Other receivables – 6 – 871 – 876 Current investments 0 – – – – 0 Cash and cash equivalents 1,332 – – – – 1,332 Total 1,332 7 49 5,238 – 6,625 Financial liabilities Contingent consideration – – 75 – – 75 Liabilities to credit institutions – 53 – 4,261 – 4,314 Bonds – 4,850 – – –129 4,721 Other non-current liabilities – – 294 36 – 331 Hire-purchase agreements – – – 259 – 259 Trade payables – – – 2,430 – 2,430 Other current liabilities – – 1,178 2,384 – 3,563 Total – 4,903 1,548 9,370 –129 15,692 As at 31 Dec 2024 SEK m LEVEL 1 LEVEL 2 LEVEL 3 OTHER¹⁾ Difference between fair and carrying value, related to quoted bonds TOTAL Financial assets Financial investments – – 37 – – 37 Non-current receivables – 1 – 269 – 270 Trade receivables – – – 4,063 – 4,063 Other receivables – 15 – 832 – 847 Current investments 0 – – – – 0 Cash and cash equivalents 1,899 – – – – 1,899 Total 1,900 16 37 5,164 – 7,116 Financial liabilities Contingent consideration – – 57 – – 57 Liabilities to credit institutions – 62 – 4,357 – 4,419 Bonds – 5,500 – – –188 5,312 Other non-current liabilities – – 1,086 39 – 1,125 Hire-purchase agreements – – – 267 – 267 Trade payables – – – 2,311 – 2,311 Other current liabilities – – 797 2,355 – 3,152 Total – 5,562 1,940 9,329 –188 16,642 1) To allow reconciliation between items in the balance sheet, financial instruments not measured at fair value were included in Other. Derivatives included in level 2 were measured at fair value based on documentation from the issuing institutions. For information purposes, bonds and convertibles in level 2 were measured at fair value as derived from quoted market prices. Financial investments in level 3 refer to unlisted shareholdings that were not measured based on observable market data. Changes in financial liabilities in Level 3, SEK m Opening balance Acquisition/ divestment Paid/Net acquisition or sale of minority interests Revaluation/ discounting Currency effect Closing balance 2025 Contingent consideration 57 45 –32 10 –4 75 Minority option liability 1,883 52 –464 83 –81 1,473 2024 Contingent consideration 320 1 –279 12 3 57 Minority option liability 1,937 25 –160 29 52 1,883 Considering that the Group has several contingent considerations from acquisitions and minority options, and that there are considerable differences in terms and conditions, forecasts for the future and maturities, a sensitiv- ity analysis does not provide a fair representation of potential changes in valuation. A change in the discount rate by one percentage point would affect the liability for the contingent considerations by SEK +/-0 million. A change in the discount rate by one percentage point would affect the liability for minority options by SEK +/-13 million. The fair value of the contingent considerations and minority options was calculated based on the expected outcome of the terms and conditions in the contracts, given a discount rate of SEK 11.4 percent (10.2). FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 123 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 26 FINANCIAL RISKS AND RISK MANAGEMENT The Group strives for structured and effective financial risk management in accordance with the Finance Policy adopted by the Board. Nevertheless, the Company’s profit and cash flow are affected by changes in the external environment and the Group’s own actions. The Company’s risk management aims to visualise and analyse the risks faced by the Group and, to the greatest possible extent, prevent and limit any negative effects. Through its operations, the Group is exposed to various kinds of financial risks – credit risk, market risk (interest rate risk, currency risk and other price risk), liquidity risk and refinancing risk. The Group’s finance function has the overarching responsibility for the Group’s risk management, which includes financial risks. Risk management includes identifying, assessing and evaluating the risks faced by the Group. Priority is given to the risks that are determined to have the most negative impact on the Group according to an overall assessment of potential impacts, probability and consequences. The Group’s overarching goals for financial risks are to ensure the short-term and long-term supply of capital, a capital structure that is stable in the long term and has a granu- lated maturity structure, and low risk exposure. CREDIT RISK Credit risk is the risk that the Group’s counterparty to a financial instrument defaults on its obligations, causing a financial loss for the Group. The Group’s credit risk is primarily caused by receivables from customers, advance payments to suppliers and investments of cash and cash equivalents. On every reporting date, the Group evaluates the credit risk of existing exposures while considering forward-looking factors. An assessment is made when the Group is exposed to credit risk. The Group has made an allowance for expected credit losses from trade receivables. In addition to trade receivables, the Group monitors the need for provisions for other financial instruments, such as cash and equiva- lents. If the amounts are deemed to be significant, an allowance for expected credit losses is made also for these financial instruments. Credit risk related to trade receivables and contract assets (simplified method for credit risk allowance) The Group is chiefly exposed to credit risk in connection with trade receivables. The Group aims to monitor this credit risk continuously. Credit risks arise both in the daily operating activities and in financial transactions. Trade receivables are spread across numerous customers, which reduces the credit risk. Credit risk related to operating activities is managed locally, at the company level. Financing activities are also exposed to some counterparty risk. The reasons for this exposure include investments of liquidity through borrowings and derivative instruments. The Group has adopted guidelines to ensure that products and services are sold to customers with an appropri- ate credit rating and that the credit risk, if possible, is mitigated when needed, such as through advance pay- ments, guarantees or other credit enhancements. Payment terms are generally between 30 and 90 days, depending on the counterparty. Historic credit losses are small compared with the Group’s sales: 0 percent (0). The Group applies the simplified approach to measuring expected credit losses for trade receivables. This means that an allowance is made for expected credit losses for the remaining maturity, which is expected to be less than one year for all receivables. The Group applies a “historical loss rate” to all trade receivables. The method is applied in combination with other known information and forward-looking factors, including information on individual customers and the management’s assessment of the impact of the industry’s economic cycle. If factors indicate a suspension of payments, an individual assessment will be made to measure the expected credit loss in addition to the loss rate. The Group will write off a receivable if it no longer expects to be paid and active measures to collect payment have ended. Age analysis, trade receivables 31 Dec 2025 31 Dec 2024 Gross Impairment Net Gross Impairment Net Not past due trade receivables 3,406 – 3,406 3,417 – 3,417 Past due trade receivables: 1–90 days 585 585 578 578 >91 days 228 –80 149 142 –74 68 Total 4,219 –80 4,140 4,137 –74 4,063 The credit quality of receivables that are less than 90 days past due is considered to be good based on historically low credit losses. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 124 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 26 Financial risks and risk management, cont. Expected credit losses for trade receivables (according to the simplified method), SEK m 2025 2024 Opening carrying amount –74 –70 Acquisition of subsidiaries –1 –1 Reversal of previous allowances 10 21 Impairment –9 –3 Amounts written off (confirmed credit losses) 5 1 Credit loss allowance for the year –16 –23 Recovered amounts, previously written off 3 2 Translation/exchange rate differences 2 –1 Closing carrying amount –80 –74 CASH AND CASH EQUIVALENTS The Group’s credit losses also arise from investments of cash and cash equivalents. The Group aims to monitor credit risk related to investments continuously. For deposits to be made in bank accounts, the counterparty must have a credit rating of at least A/A2 according to Standard & Poor and Moody’s. Allowance for expected credit losses (general model) Financial assets that are subject to a loss allowance for expected credit losses according to the general model include other receivables and cash and cash equivalents. According to the general model, credit risk is measured for the next 12 months. The Group applies a ratings-based method where expected credit losses are measured as the product of the probability of default, loss given default and exposure in the event of default. Other known information and forward-looking factors for assessing expected credit losses are also considered. As at the reporting date, no significant increase in credit risk was deemed to exist for any receivable or asset. The assess- ment is based on whether there is a significant deterioration in credit ratings. In the event of a significant increase in credit risk, the credit risk is measured for the remaining term of the exposure. Credit risk exposure The Group’s trade receivables are spread across several different customers, and there is no significant credit risk concentration to individual counterparties. The Company’s significant credit risk concentrations regarding assets that are subject to the loss allowance for expected credit losses are presented below. Credit risk exposure (gross) as at 31 Dec 2025 The Group’s credit risk exposure consists of trade receivables and cash and cash equivalents. Trade receivables with a gross value of SEK 4,219 million (4,137) comprise receivables from companies without a credit risk rating. SEK 1,332 million (1,899) in cash and cash equivalents are deposited with financial institutions with a high credit rating (A or higher). It is deemed that there has not been any significant increase in credit risk for any of the Group’s financial assets. MARKET RISK Market risk is the risk that the fair value of future cash flows from a financial instrument will fluctuate because of changes in market prices. According to IFRS, market risk comprises three types of risk: currency risk, interest rate risk and other price risk. The market risks that mainly affect the Group are interest rate risk and currency risk. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group is chiefly exposed to market rate risk related to the Group’s borrow- ings at variable interest. At the end of the reporting date, the most significant loans from credit institutions had variable interest. To manage interest rate risk, interest rate derivatives are used to change the fixed interest periods of borrowings. According to the current policy, the aim is for the average fixed interest period of borrow- ings to be between six months and three years. As at 31 December 2025, the average fixed interest period was 11.3 months (12.5). Considering the loan structure as at the reporting date and the interest rate hedges that had been entered into, a change in interest rates of 1 percentage point would have an effect of SEK +/69 on the profit before tax. The table below specifies the terms, conditions and repayment terms of each interest-bearing liability: Carrying amount SEK m Currency Maturity Interest rate % 31 Dec 2025 31 Dec 2024 Liabilities to credit institutions SEK 2028–2029 Variable/STIBOR 3M Margin: 2.0–2.4 4,261 4,357 Bond loans SEK 2027, 2028, 2029, 2030 Variable/STIBOR 3M Margin: 2.7–3.8 4,721 5,312 Hire-purchase agreements SEK ¹⁾ Variable/fixed ¹⁾ 259 267 Lease liabilities SEK 2⁾ Variable/fixed 2⁾ 1,551 1,606 Total 10,792 11,542 1) The Group has acquired production equipment under several hire-purchase agreements with varying interest rates and maturity str uctures. 2) The Group leases production equipment under several leases with varying interest rates and maturity structures. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 125 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 26 Financial risks and risk management, cont. Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. To ensure future contracted cash flows in projects where the revenue is in a foreign currency, the Group has entered into currency forward contracts to hedge the currency risk. The Group is exposed to various types of currency risks, including from the Group’s sales and purchases in foreign currencies. These currency risks consist partly of the risk of fluctuations in the value of financial instruments, trade receivables or trade payables and partly of the currency risk in expected and contracted payment flows. These risks are referred to as transaction exposure. The Group’s profit for the year includes exchange rate differences of SEK -51 million (+13) in operating profit and SEK -42 million (-15) in net financial items. Of the year’s reported Operating profit of SEK 2,391 million (1,492), approximately 46 percent (46) was in a functional currency other than SEK. The exposure in EUR (NOK) was the greatest, at 15 percent (9), which means that a change of 1 percent in the EUR exchange rate compared to SEK would have an effect of SEK +/-3 million (1) on the Operating profit. Currency risks also arise from the translation of assets and liabilities in foreign subsidiaries into the Group’s functional currency, which is referred to as translation exposure. An effect of SEK -1,058 million (+501) is included in comprehensive income. The greatest translation exposure is to CHF (22 percent of the net assets), to GBP (15 percent) and to NOK (6 percent), while 39 percent of the net assets are found in companies that have SEK as their reporting currency. According to a sensitivity analysis, a change of 1 percent in CHF, all other things being equal, would have an effect of SEK 44 SEK million on the translation reserve. The corresponding figure is SEK 31 million for GBP and SEK 13 million for NOK. DERIVATIVES THAT ARE SUBJECT TO HEDGE ACCOUNTING, CASH FLOW HEDGE The Group applies hedge accounting in the form of cash flow hedges. When a hedging transaction is entered into, the relationship between the hedging instrument and the hedged item is documented, along with the risk management objective and strategy. The determined hedge ratio between the hedging instrument and the hedged item is based on the hedge ratios of the actual hedges; the hedge ratio is 1:1 for all hedges. Hedges are designed to be effective, i.e. there is an expectation of an economic relationship as the hedging instrument offsets changes in fair value or cash flows if there is a risk in the hedged item. The economic relationship is preferably established through a qualitative assessment of critical terms in the hedging relationship. Sources of hedge ineffectiveness comprise the effect of the parties’ credit standing in the valuation of the hedging instrument and imperfectly matched cash flows between the hedging instrument and the hedged cash flows. The Group deter- mines that the sources of hedge ineffectiveness are not significant, considering the credit standing of the parties and that the cash flows agreed upon in projects are hedged. Currency derivatives To ensure future contracted cash flows in projects where the revenue is in a foreign currency, the Group may enter into currency forward contracts to hedge the currency risk. As at the reporting date on 31 December 2025, the accumulated effect on the cash flow hedged currency derivatives in the hedging reserve in equity was SEK 0 million (0) after tax. Interest rate derivatives When the Group borrows at variable interest and changes the interest rate exposure by entering into interest rate swaps, according to which it is agreed that variable interest will be received and fixed interest be paid, the hedging relationship is classified as a cash flow hedge. When hedge accounting is applied, the effective portion of the change in the value of the hedging instrument is recognised in Other comprehensive income. Interest rate derivatives that constitute hedged transactions are matched to individual loans. The Group started using hedge accounting in October 2023. As at the reporting date on 31 December 2025, the accumulated effect on the cash-flow-hedged interest rate derivatives in the hedging reserve in equity was SEK -67 (-83) million after tax. An analysis shows that a change of +/- 1 percent in variable market rates would have an impact of approximately SEK +/- 50 million on the hedging reserve in equity after tax. Hedging of future cash flows (cash flow hedging) Hedging instruments identified in hedging relationships at year-end Changes in fair value for measuring the effectiveness over the year SEK m Nominal amount Carrying amount Balance sheet item Hedging instrument Hedged item 2025 Interest rate derivatives, variable to fixed interest, SEK 3,899 –14 Interest-bearing non-current liabilities –15 –3,899 2024 Interest rate derivatives, variable to fixed interest, SEK 4,095 –55 Interest-bearing non-current liabilities –105 –4,095 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 126 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 26 Financial risks and risk management, cont. Maturity analysis Maturity Hedging instruments at year-end (cash flow hedging) –1 year 1–3 years 3–5 years Total 2025 Interest rate derivatives, variable to fixed interest, SEK, nominal amount 2,000 1,899 0 3,899 Average fixed interest 2.78% 2.91% 0 2.82% Currency forward contracts, nominal amounts, SEK m – – Average hedged forward rate, EUR/SEK – – 2024 Interest rate derivatives, variable to fixed interest, SEK, nominal amount 595 3,500 0 4,095 Average fixed interest 2.66% 3.04% 0 2.98% Currency forward contracts, nominal amounts, SEK m – – Average hedged forward rate, EUR/SEK – – Reconciliation of hedging reserve and translation reserve in equity 2025 2024 SEK m Hedging reserve Translation reserve Hedging reserve Translation reserve Opening carrying amount –83 1,227 –91 726 Items added over the period, recognised in other comprehensive income 19 541 10 541 Tax –4 –40 –2 –40 Total items added over the year, recognised in other comprehensive income 15 501 9 501 Closing book value –67 1,728 –83 1,227 Of which, ongoing hedges –67 – –83 – Liquidity risk and refinancing risk Liquidity risk is the risk that an entity will encounter difficulty meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company manages liquidity risk through continuous follow-up of the operations and by maintaining a cash pool structure that ensures that the compa- nies’ credit needs are met. The Group continuously forecasts future cash flows based on various scenarios to ensure that financing occurs in a timely fashion. The risk is mitigated by the Group’s good liquidity reserves, which are readily available. In addition to equity, the Group's operations are essentially financed via loans and credit facilities totalling SEK 12,162 million (12,896). The terms and conditions of the Group’s financing constitute quarterly follow-up of interest-bearing net debt/ adjusted RTM EBITDA. As at the reporting date, the terms and conditions were met with a proper margin. At year-end, the total credit amount consisted of SEK 7,441 million (4,595) in bank loans and a revolving credit facility, of which SEK 3,180 million (2,960) was unutilised, and SEK 4,721 million (5,312) in bond loans. The total liquidity reserve, consisting of cash and cash equivalents, current investments and unutilised facilities, was SEK 4,512 million (4,859) as at the reporting date. Refinancing risk refers to the risk that financing for acquisitions or development cannot be retained, extended, expanded or refinanced or that such financing can only occur on terms that are unfavourable to the Group. The need for refinancing is regularly reviewed by the Group and the Board to ensure the financing of the Company's expansion and investments. The goal is to ensure that the Group has continuous access to external borrowing without a significant increase in the cost of borrowing. The refinancing risk is reduced by ensuring that the refinancing process is structured and begins in a timely fashion. For larger loans, the process begins no later than three to nine months before the due date. The refinancing risk is also limited by spreading the terms of the capital tied up in the loan portfolio over time. The average period of capital tied-up was 2,4 years at the end of 2025. The Group’s contractual and undiscounted interest payments and repayments of financial liabilities are shown in the table below. Financial instruments with variable interest rates were calculated using the interest rate as at the reporting date. Liabilities were included in the period at the earliest point when repayment can be demanded. 31 Dec 2025 Maturity analysis, SEK m <1 year old 1–5 years old >5 years old Total, including interest Carrying amount Liabilities to credit institutions (including bonds) 778 9,542 2 10,322 9,240 Lease liabilities 449 764 405 1,618 1,551 Other non-current liabilities 380 – 380 380 Trade payables 2,430 – – 2,430 2,430 Other current liabilities 1,876 – – 1,876 1,876 Total 5,533 10,686 407 16,626 15,478 31 Dec 2024 Maturity analysis, SEK m <1 year old 1–5 years old >5 years old Total, including interest Carrying amount Liabilities to credit institutions (including bonds) 1,933 9,156 0 11,089 9,936 Lease liabilities 547 960 544 2,051 1,606 Other non-current liabilities 1,167 – 1,167 1,167 Trade payables 2,311 – – 2,311 2,311 Other current liabilities 1,428 – – 1,428 1,428 Total 6,219 11,283 544 18,046 16,448 The agreement for the syndicated loan includes covenants regarding interest-bearing net debt/operating profit or loss (adjusted RTM EBITDA) and equity/assets ratio that must be satisfied to avoid an increased cost of borrow- ing. Interest-bearing net debt/adjusted RTM EBITDA must not exceed 3.5 x. Storskogen has not been in breach of the covenants in 2025 or before. Storskogen’s credit agreements/lines of credit: 31 Dec 2025 31 Dec 2024 SEK m Amount Utilised Amount Utilised Revolving credit facility 4,327 1,147 4,595 1,635 Total 4,327 1,147 4,595 1,635 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 127 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 26 Financial risks and risk management, cont. CAPITAL MANAGEMENT According to the Finance Policy adopted by the Board, the Group shall manage its financing activities with proper control and orderly financing conditions. This ensures that Storskogen retains the confidence of investors, credi- tors and other stakeholders and lays the foundation for the continued development of its operations. Based on the balancing of return and financial stability, the long-term target for interest-bearing net debt/adjusted RTM EBITDA was set at 2.0–3.0 x. The adjustment of this target forms part of the strategic planning, and the level of indebtedness is monitored continuously in the internal reporting to the management and the Board. According to the Group’s bank covenants, interest-bearing net debt is measured in relation to adjusted RTM EBITDA, i.e. as if all companies owned by Storskogen as at 31 December 2025 had been owned for the last 12 months. For further information on the Group’s Adjusted RTM EBITDA, see the section Definition of key performance indicators. Adjusted RTM EBITDA SEK m 2025 2024 Adjusted RTM EBITDA 4,166 4,258 Interest-bearing net debt Interest-bearing liabilities 11,048 11,855 Less cash and cash equivalents, current investments and financial assets –1,534 –2,163 Interest-bearing net debt¹⁾ 9,514 9,693 Leverage ratio Leverage ratio (interest-bearing net debt/adjusted RTM EBITDA) 2.3 2.3 1) In this calculation, financial liabilities only refer to non-current and current interest-bearing liabilities, excluding future minority options and contingent considerations. Adjusted RTM EBITDA Operating profit (EBIT) before amortisation, depreciation and impairment, but excluding items affecting compa- rability. Adjusted RTM EBITDA is calculated as adjusted EBITDA recorded in the previous 12-month period adjusted for the contribution from businesses acquired in the period, excluding companies divested during the entire period. The purpose is to assess the Group’s operating activities. EBITDA serves as a complement to operating profit. Adjusted EBITDA facilitates comparisons of EBITDA between periods. SEK m 2025 2024 RTM Operating profit 2,408 1,481 Items affecting comparability¹⁾ 27 81 RTM amortisation and depreciation 1,732 1,830 RTM amortisation and depreciation – 866 Adjusted RTM EBITDA 4,166 4,258 1) Items affecting comparability in 2025 and 2024 include the remeasurement of contingent considerations, stamp duty on foreign business combinations, central restructuring costs and capital gains/losses on business divestments. Items affecting compara- bility are excluded to facilitate comparisons between periods. For a compilation of items affecting comparability, see the section Definition of alternative performance indicators. NOTE 27 LEASES RIGHT-OF-USE ASSETS Right-of-use assets SEK m Premises Machinery and vehicles Total Lease liabilities Opening balance, 1 Jan 2024 1,266 408 1,674 1,652 New leases 496 218 715 712 Depreciation of right-of-use assets –390 –193 –583 – Terminated leases –17 –15 –32 –27 Revaluation of leases –148 –46 –194 –173 Interest expense on lease liabilities – – – 108 Lease payments – – – –675 Translation differences 9 2 11 10 Closing balance, 31 Dec 2024 1,216 374 1,591 1,606 New leases 238 251 489 486 Depreciation of right-of-use assets –351 –200 –551 – Terminated leases –64 –13 –78 –76 Revaluation of leases 130 –8 122 127 Interest expense on lease liabilities – 102 Lease payments – –658 Translation differences –28 –8 –33 –37 Closing balance, 31 Dec 2025 1,141 397 1,540 1,551 The amounts recognised in the consolidated income statement for the year for lease activities are presented below: SEK m 2025 2024 Depreciation of right-of-use assets –551 –583 Interest expense on lease liabilities –102 –108 Expense related to short-term leases –3 –8 Expense related to leases of low-value assets –3 –3 Effect on profit or loss of terminated leases –2 –5 Total –661 –707 Cash outflow related to leases was SEK 664 million (686). For a maturity analysis of leases, see Note 26. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 128 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 27 Leases, cont. The Group’s leases and their recognition The Group primarily leases premises, vehicles and machinery. The Group is exposed to potential future increases in variable lease payments that depend on an index or a rate, which are not included in the lease liability until they take effect. When adjustments to lease payments that depend on an index or a rate take effect, the lease liability is remeasured and adjusted against the right-of-use asset. Lease payments are allocated between repayments of the principal and interest. Interest is recognised in profit or loss over the lease term in a way that results in a fixed interest rate on the lease liability recognised in each period. Right-of-use assets are measured at cost, which corresponds to the amount of the initial measurement of the lease liability. Right-of-use assets are depreciated on a straight-line basis over the useful life, which corresponds to the lease term. Options to extend or terminate leases Several leases in the Group, primarily leases of premises, have extension options. Options to extend and terminate leases are included in several of the Group’s leases of premises and machinery. An assessment is made of each individual lease to determine whether the extension options will be exercised with reasonable certainty. Leases that will be used with reasonable certainty are included in the lease period. Charges associated with short-term leases and leases of low-value assets Short-term leases and leases of low-value assets are expensed on a straight-line basis in profit or loss. Short-term leases are leases with a lease term of 12 months or less after options to extend have been considered. NOTE 28 ASSETS PLEDGED AND CONTINGENT LIABILITIES SEK m 31 Dec 2025 31 Dec 2024 Assets pledged Assets pledged as security for own liabilities and provisions Property mortgages – 9 Corporate mortgages 4 4 Assets with retention of title 343 263 Other 11 21 Total 358 297 Contingent liabilities Suretyships, other 1 3 Total contingent liabilities 1 3 NOTE 29 TRANSACTIONS WITH RELATED PARTIES A list of the Group’s subsidiaries, which are also related parties to the Group, is provided in Note 30 Participations in Group companies. All transactions between Storskogen Group AB (publ) and its subsidiaries were eliminated in the consolidated accounts. There were no material transactions with related parties during the financial year except for remuneration to senior executives. There were no material outstanding receivables or liabilities related to related parties. All transactions with related parties were on market terms. For information on remuneration to senior executives, see Note 8, Employees, staff costs and remuneration to senior executives. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 129 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 30 PARTICIPATIONS IN GROUP COMPANIES Storskogen Group AB (publ)’s holdings in direct and indirect subsidiaries that are included in the consolidated accounts are listed below: Specification of Group holdings Share of capital/votes Company Corporate Identity No. Registered office 31 Dec 2025 31 Dec 2024 Storskogen Group AB (publ) 559223-8694 Stockholm, Sweden Parent company Parent company Storskogen Holding AB¹⁾ 559090-6763 Stockholm, Sweden 100.0% 100.0% Storskogen Utveckling AB²⁾ 556970-1229 Stockholm, Sweden 100.0% 100.0% Storskogen Management AB³⁾ 556803-3012 Stockholm, Sweden 100.0% 100.0% Storskogen Group International AB 559248-2144 Stockholm, Sweden 100.0% 100.0% Storskogen Schweiz AG CHE-348.450.254 Zurich, Switzerland 100.0% 100.0% LEP AG CHE-103.079.116 St Gallen, Switzerland 97.5% – LNS Holding SA CHE-116.025.868 Neuchâtel, Switzerland 100.0% 100.0% Marwell AG4⁾ CHE-101.080.195 Münchenstein, Switzerland 95.8% 96.2% PerfectHair AG CHE-114.270.049 Wallisellen, Switzerland 98.5% 96.2% Vokus Personal AG CHE-345.876.556 Zurich, Switzerland 95.7% 95.7% Storskogen Schweiz Management AG CHE-252.503.539 Zurich, Switzerland 100.0% 100.0% Storskogen Deutschland GmbH HRB 276478 Munich, Germany 100.0% 100.0% A&K Die Frische Küche GmbH HRB 7911 Recklinghausen, Germany 100.0% 100.0% Christ & Wirth Haustechnik GmbH HRB 17814 Zwenkau, Germany 80.0% 80.0% Hans Kämmerer GmbH HRB 17809 Wachtendonk, Germany 100.0% 85.0% HK Immobilien GmbH HRB 276579 Munich, Germany 100.0% 100.0% Roleff GmbH & Co. KG HRB 212148 Altbach, Germany 100.0% 100.0% SF Tooling Group GmbH HRB 731101 Laichingen, Germany 94.6% 94.6% Weidinger GmbH HRB 60470 Gernlinden, Germany 100.0% 100.0% Storskogen Danmark ApS 42 150 290 Copenhagen, Denmark 100.0% 100.0% Danboring AS 19 623 106 Kjellerup, Denmark 90.1% 90.1% Danmatic Automated Bakery Systems A/S 12 509 707 Viborg, Denmark 80.0% 75.0% Fremco A/S 30 815 416 Frederikshavn, Denmark 84.0% 84.0% INGENIØR´NE A/S 78 015 217 Esbjerg, Denmark 82.0% 82.0% Storskogen Suomi Oy 3267436-8 Espoo, Finland 100.0% 100.0% Frameda Oy 2634753-9 Helsinki, Finland 80.0% – Storskogen Norge AS 927 075 113 Oslo, Norway 100.0% 100.0% Fon Anlegg AS 915 557 368 Sandefjord, Norway 100.0% 90.1% Motavo Group AS5⁾ 996 589129 Porsgrunn, Norway - 80.0% Nimbus Gruppen AS 927 950 731 Fredrikstad, Norway 96.4% 90.1% THERMICA AS 997 933 273 Lierstranda, Norway 80.0% 80.0% Share of capital/votes Company Corporate Identity No. Registered office 31 Dec 2025 31 Dec 2024 Storskogen Singapore Pte. Ltd 202141432Z Singapore, Singapore 100.0% 100.0% CMTi Pte. Ltd 199407655W Singapore, Singapore 70.0% 70.0% The Physics Cafe Pte Ltd 201404177D Singapore, Singapore 65.0% 65.0% XOD Box Pte Ltd 200406647E Singapore, Singapore 80.0% 65.0% Storskogen UK Limited 13 142 215 London, United Kingdom 100.0% 100.0% AC Electrical Services Group Ltd 09 989 395 Blackpool, United Kingdom 80.0% 80.0% Carry Gently Holdings Limited 13,550,121 Hampshire, United Kingdom 92.5% – Extra UK Ltd 30 019 18 Northampton, United Kingdom 80.0% 80.0% Fabco Sanctuary Ltd 06 552 850 London, United Kingdom 100.0% 80.0% J&D Pierce Ltd SC 174,690 Glengarnock, United Kingdom 80.0% 80.0% Julian Bowen Ltd 2 108 701 Kirky-in-Ashfield, United Kingdom 80.0% 80.0% SGS Tool Group Ltd 12 071 237 Derby, United Kingdom 80.0% 80.0% Stop Start Transport Ltd 13 763 831 Worcester, United Kingdom 80.0% 80.0% Tornado Group Ltd 05 240 005 Millom, United Kingdom 90.0% 80.0% Storskogen 3 Invest AB 559080-4273 Stockholm, Sweden 100.0% 100.0% 2M2 Group AB 556688-3772 Båstad, Sweden 100.0% 90.1% A Lot Decoration Sweden AB 556698-0131 Falköping, Sweden 100.0% 100.0% Acreto AB 556681-5469 Gothenburg, Sweden 80.0% 80.0% Adero AB6⁾ 556922-6300 Stockholm, Sweden 98.1% 98.1% AE5 2012 Holding AB (Brenderup) AB7⁾ 556951-8011 Jönköping, Sweden 98.8% 98.7% AGIO System och Kompetens i Skandinavien AB 556650-2968 Luleå, Sweden 100.0% 90.1% Agnesberg Grävtjänst i Kungälv AB 556408-5677 Kungälv, Sweden 100.0% 100.0% Aktiebolaget Wibe 556034-6495 Mora, Sweden 100.0% 100.0% Albin Components AB 556312-5656 Kristinehamn, Sweden 100.0% 100.0% Alfta Kvalitetslego AB 556424-2765 Ovanåker, Sweden 90.1% 90.1% ARAT AB8⁾ 556922-2697 Växjö, Sweden 100.0% 99.5% Ashe Invest AB 559059-3868 Gothenburg, Sweden 85.0% 85.0% Bombayworks AB 556720-9357 Stockholm, Sweden 100.0% 90.1% BR Solutions AB 556251-0817 Gothenburg, Sweden 100.0% 100.0% FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 130 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 30 Participations in Group companies, cont. Share of capital/votes Company Corporate Identity No. Registered office 31 Dec 2025 31 Dec 2024 Brandprojektering Sverige AB 556984-7444 Skövde, Sweden 100.0% 71.2% Buildercom Group AB 559064-1410 Stockholm, Sweden 100.0% 100.0% ByWe Group AB 559382-6232 Stockholm, Sweden 92.0% 92.0% Båstadgruppen AB 556519-6135 Ängelholm, Sweden 95.0% 91.0% C.S Riv och Håltagning AB 556529-8766 Stockholm, Sweden 100.0% 100.0% Ebiw AB 559461-7499 Stockholm, Sweden 100.0% 100.0% Ecochange AB 556239-4618 Norrköping, Sweden 100.0% 90.1% Elektroautomatik i Sverige AB 556100-1008 Gothenburg, Sweden 100.0% 100.0% Hallverket Norden AB9⁾ 559059-4304 Enköping, Sweden 30.0% 30.1% Hans Löfqvist Engineering AB 556196-1706 Örebro, Sweden 95.0% 95.0% Harmoni Care AB 559436-5677 Gothenburg, Sweden 90.2% 90.2% Harrysson Entreprenad Aktiebolag (HEAB) 556273-9762 Hallsberg, Sweden 100.0% 100.0% Hedson Technologies International AB 556450-9874 Burlöv, Sweden 97.9% 97.9% Hudikhus AB 556101-7715 Hudiksvall, Sweden 70.0% 70.0% IDATA AB 556618-8396 Värnamo, Sweden 100.0% 100.0% Imazo AB 556196-2951 Vara, Sweden 100.0% 100.0% IMS Maskinteknik AB 556244-8349 Enköping, Sweden 100.0% 100.0% INBEGO AB 556294-1558 Älmhult, Sweden 100.0% 100.0% IVEO AB 556791-6811 Stockholm, Sweden 90.4% 69.4% Jacob Lindh AB 556689-6576 Lund, Sweden 90.1% 90.1% Jata Cargo AB 556542-2895 Malmö, Sweden 90.1% 90.1% Kumla Handtagsfabrik AB 559156-8331 Stockholm, Sweden 99.9% 99.9% Lindberg Stenberg Arkitekter AB 556250-6609 Stockholm, Sweden 90.1% 90.1% M J Contractor AB 556492-6904 Upplands Väsby, Sweden 100.0% 100.0% Mälardalens Installationspartner AB¹0⁾ 556582-9420 Huddinge, Sweden 100.0% 100.0% NetRed AB 556596-8640 Tidaholm, Sweden 94.0% 91.0% Newton Kompetensutveckling AB¹¹⁾ 556464-7989 Stockholm, Sweden 100.0% 100.0% Nitro Consult Aktiebolag 556131-5770 Stockholm, Sweden 100.0% 100.0% Noa:s Snickeri i Tibro AB 556389-5290 Tibro, Sweden 100.0% 100.0% NORDIC WHEEL & AUTOSUPPLY AB 556624-1807 Kungsbacka, Sweden 90.1% 90.1% Nummelina AB 556508-9850 Kungsbacka, Sweden 90.1% 90.1% Ockelbo Kabelteknik AB 556675-2019 Ockelbo, Sweden 100.0% 100.0% Pierre Entreprenad i Gävle AB 556582-9784 Gävle, Sweden 90.1% 90.1% Plåthuset i Mälardalen AB 556311-2050 Enköping, Sweden 100.0% 100.0% PR Home of Scandinavia AB 556614-9323 Borås, Sweden 72.3% 70.0% Share of capital/votes Company Corporate Identity No. Registered office 31 Dec 2025 31 Dec 2024 Primulator AS 918 375 643 Oslo, Norway 100.0% 100.0% PV Systems AB 556671-1437 Tidaholm, Sweden 100.0% 100.0% Riviera Markiser & Persienner AB 556432-5685 Partille, Sweden 100.0% 100.0% Roslagsgjuteriet AB 559052-2032 Stockholm, Sweden 100.0% 100.0% RS Fastigheter i Sölvesborg AB 556265-9143 Sölvesborg, Sweden 100.0% 100.0% Skara Transport Group AB 559030-3094 Skara, Sweden 100.0% 100.0% Scandia Steel Sweden AB 559272-9320 Stockholm, Sweden 95.0% 95.0% Scandinavian Cosmetics Group AB 559209-0533 Malmö, Sweden 96.0% 95.9% Schalins Ringar AB 556161-6110 Östersund, Sweden 100.0% 100.0% Session MAP AB 556782-3868 Uddevalla, Sweden 70.0% 70.0% SGD Sveriges Golvdistributörer AB 556445-3529 Växjö, Sweden 100.0% 100.0% SoVent Group AB 559138-8789 Stockholm, Sweden 97.5% 95.8% Storebrogjuteriet AB 556525-0049 Stockholm, Sweden 100.0% 100.0% Strand i Jönköping AB 556385-9197 Jönköping, Sweden 95.0% 95.0% Stål och Rörmontage i Sölvesborg AB 556292-0453 Sölvesborg, Sweden 100.0% 100.0% Svenska Grindmatriser AB 556258-8839 Linköping, Sweden 100.0% 95.0% Swedstyle AB 556272-5134 Vaggeryd, Sweden 100.0% 100.0% Södra Infragruppen Sverige AB 556815-0667 Kristianstad, Sweden 100.0% 100.0% Tepac Entreprenad AB 556646-7980 Stockholm, Sweden 92.0% 92.0% Tjällmo Grävmaskiner AB 556337-3652 Motala, Sweden 100.0% 100.0% TK Logistik AB 556707-8356 Gothenburg, Sweden 99.1% 99.1% TRELLEGRÄV AB 556454-9391 Trelleborg, Sweden 100.0% 90.1% Tunga Lyft i Sverige AB 556713-3243 Malmö, Sweden 100.0% 100.0% Tunga Lyft Engineering i Sverige AB 556801-7726 Malmö, Sweden 100.0% 100.0% Viametrics Group AB 559018-4155 Stockholm, Sweden 91.6% 91.6% Vikingsun AB 556492-4362 Stockholm, Sweden 95.0% 95.0% VINAB, Verkstadsindustri i Norr AB 556690-0832 Gällivare, Sweden 100.0% 90.1% VSH Holding AB (Swedwise) 556825-6423 Karlstad, Sweden 80.0% 82.4% Vårdväskan AB 556880-1939 Falkenberg, Sweden 90.1% 90.1% Värmdö Hemmesta 17:2 AB 559432-0995 Stockholm, Sweden 100.0% 100.0% VästMark Entreprenad AB 556816-5350 Gothenburg, Sweden 100.0% 90.1% Zymbios Logistics Contractor AB 556681-8653 Kumla, Sweden 100.0% 100.0% ÅMV Production AB 556627-2927 Åsele, Sweden 100.0% 100.0% 1) As of 1 September 2025, Storskogen Holding AB is a subsidiary of Storskogen Group AB due to an internal change in the Group’s legal holding structure. This change has not affected the Group’s performance or position. 2) As of 1 September 2025, Storskogen Utveckling AB is a subsidiary of Storskogen Holding AB due to an internal change in the Group’s legal holding structure. This change has not affected the Group’s performance or position. 3) As of 1 September 2025, Storskogen Management AB is a subsidiary of Storskogen Utveckling AB due to an internal change in the Group’s legal holding structure. This change has not affected the Group’s performance or position. Storskogen Management AB was previously called Storskogen Industrier AB. 4) Over the year, Marwell AG was acquired internally by Storskogen Schweiz AG from the Group company PerfectHair AG. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 131 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Note 30 Participations in Group companies, cont. 5) During the 2025 financial year, Vox Hair Concept changed its name to Motavo Group AS and was divested. 6) During the financial year, DeroA AB merged with Adero AB. 7) During the financial year, Brenderup Group AB, a subsidiary of AE5 2012 Holding AB, internally acquired Berco Produktion i Skel lefteå AB from the Group company Storskogen Management AB. 8) During the financial year, ARAT AB internally acquired Gullängets Mekaniska Verkstad AB from the Group company Storskogen Management AB. 9) Storskogen 3 Invest AB owns 30 percent of Hallverket Norden AB (formerly Plåthuset Syd AB). The remaining 70 percent is owned by Plåthuset i Mälardalen AB, a wholly-owned subsidiary of Storskogen 3 Invest AB. 10) Over the year, Mälardalens Installationspartner AB (formerly Innovative Logistics Umeå AB) internally acquired Stockholms Rörexpress AB and Örnsberg EL Tele & Data AB from Storskogen 3 Invest AB. 11) During the financial year, Newton Kompetensutveckling AB internally acquired Stockholms Internationella Handelsskola AB from the Group company Storskogen 3 Invest AB. NOTE 31 SPECIFICATIONS TO THE CASH FLOW STATEMENT Adjustment for non-cash items SEK m 2025 2024 Amortisation, depreciation and impairment 1,750 2,731 Capital gains/losses –84 11 Adjustment in the value of contingent considerations 10 12 Unrealised foreign exchange gains/losses 17 11 Reversal of capitalised borrowing costs 134 121 Change in accrued interest –13 –28 Unrealised value changes in derivatives 20 11 Share-based payment transactions and other items –24 28 Total 1,809 2,896 Over the year, interest received was SEK 52 million (44) and interest paid was SEK 673 million (917). CHANGE IN LIABILITIES FROM FINANCING ACTIVITIES Non-cash movements SEK m 1 Jan 2025 Cash flow from financing activities Business combinations Changes in fair value New leases/hire- purchase agreements Other 31 Dec 2025 Interest-bearing liabilities to credit institutions (including bond loans) 9,730 –615 – – – –81 9,034 Interest-bearing liabilities for hire-purchase agreements 267 –18 8 – – 2 259 Lease liabilities 1,606 –555 – – 486 15 1,552 Total liabilities from financing activities 11,603 –1,189 8 – 486 –64 10,845 Non-cash movements SEK m 1 Jan 2024 Cash flow from financing activities Business combinations Changes in fair value New leases/hire- purchase agreements Other 31 Dec 2024 Interest-bearing liabilities to credit institutions (including bond loans) 10,333 –769 – – – 167 9,730 Interest-bearing liabilities for hire-purchase agreements 293 –112 – – 86 – 267 Lease liabilities 1,652 –568 – – 712 –190 1,606 Total liabilities from financing activities 12,278 –1,449 – – 798 –23 11,603 For liabilities to credit institutions, the item ‘Other’ chiefly includes reversals of capitalised borrowing costs and the effects of unrealised exchange rate fluctuations. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 132 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 32 EARNINGS PER SHARE Basic earnings per share are calculated by dividing net profit attributable to the Parent Company’s shareholders by the weighted average number of ordinary shares outstanding during the period. When calculating diluted earnings per share, the dilutive effect of potential ordinary shares and the weighted average of the additional shares that would have been outstanding if all potential ordinary shares had been converted are considered. Earnings per share SEK 2025 2024 Basic earnings per share, series A and B 0.63 –0.03 Diluted earnings per share, series A and B 0.63 –0.03 Profit for the year attributable to the holders of ordinary shares in the Parent Company SEK m 2025 2024 Profit for the year attributable to the holders of series A and B shares in the Parent Company 1,063 –52 Weighted average number of shares used in the calculation of diluted earnings per share 2025 2024 Weighted average number of ordinary series A shares 134,476,374 147,101,374 Weighted average number of ordinary series B shares¹⁾ 1,551,554,470 1,540,207,105 Total weighted number of shares outstanding 1,686,030,844 1,687,308,479 1) Includes a dilutive effect of 0 (583,260) potential shares. NOTE 33 EVENTS AFTER THE REPORTING DATE Events after the end of the financial year Jesper Kronstrand was appointed Head of Business Area Services and a member of the Group management. He replaced Peter Ahlgren, who had previously notified his intent to phase out his operational commitments gradually. Chris Pullen was appointed permanent Managing Director of Storskogen UK and a member of the Group management, having previously held the role on an interim basis since May 2025. After the balance sheet date, Storskogen completed the previously announced repurchase programme related to B shares. Based on the authorisation by the 2025 AGM, 8,865,000 own Series B shares were repurchased for a total amount of approximately SEK 100 million. The Nomination Committee proposes that Adam Parker be elected as a new Board member at the AGM on 6 May 2026. Robert Belkic has communicated that he wishes to decline re-election. On 2 March, the business unit PerfectHair.ch in Switzerland was divested. PerfectHair.ch was part of the Trade business area and contributed sales of SEK 288 million and an adjusted EBITA of SEK -19 million to the Group in 2025. The divestment was a step in Storskogen’s continuous review of the portfolio and the Group’s increased focus on B2B-oriented distributors in haircare. PerfectHair.ch is active in the distribution of haircare and beauty products to consumers, B2C, which is beyond the Group’s strategic direction. In February 2026, the Group’s term loan and its revolving credit facility (RCF) were extended by one year. After the extension, the term loan will fall due in the third quarter of 2028, while the RCF will fall due in the first quarter of 2029. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 133 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTES – PARENT COMPANY NOTE 34 NET SALES SEK m 2025 2024 Revenue from management fees 111 179 Costs invoiced to Group companies 6 3 Total 117 182 NOTE 35 FINANCIAL INSTRUMENTS Valuation of financial assets and liabilities as at 31 December 2025 SEK m 2025 2024 Financial assets Receivables from Group companies 21,087 22,457 Receivables from credit institutions 1 1 Other non-current receivables 189 241 Cash and cash equivalents 775 1,259 Total 22,052 23,958 Financial liabilities Liabilities to credit institutions 4,249 5,253 Bonds 4,721 4,471 Liabilities to Group companies 6,888 6,319 Other liabilities 1 17 Trade payables 1 7 Total 15,860 16,067 The carrying amount is a good approximation of the fair value of financial assets and liabilities. Intra-Group derivatives are mainly reflected against an external counterparty (a bank) through external derivatives. NOTE 36 EMPLOYEES, STAFF COSTS AND REMUNERATION TO SENIOR EXECUTIVES Salaries and other remuneration, by the CEO, Board and other employees 2025 SEK m CEO Board of Directors Other employees¹⁾ Total Salaries and remuneration 9 3 52 64 (of which bonuses, etc.) (–) (–) – (–) Social security costs 5 1 37 43 (of which pension costs) (2) (–) (13) (15) Total 14 4 89 107 2024 SEK m CEO²⁾ Board of Directors Other employees Total Salaries and remuneration 18 3 123 144 (of which bonuses, etc.) (–) (–) (1) (1) Social security costs 9 1 62 72 (of which pension costs) (3) (–) (22) (25) Total 27 4 185 216 1) On 1 September 2025, management activities were transferred from the Parent Company to Storskogen Management AB. The CEO, CFO and investor relations and treasury functions remain in the Parent Company. 2) Daniel Kaplan resigned as CEO on 19 February 2024. Remuneration during the notice period was paid until 31 December 2024 with SEK 7,052 thousand in basic salary and SEK 1,339 thousand in pension costs. The notice period and the non-compete agreement expired on 31 December 2024, and no additional remuneration is payable. 2025 2024 Average number of employees Women/men Women/men Sweden 43 18/25 65 35/30 Total 43 65 NOTE 37 REMUNERATION TO THE AUDITORS SEK m 2025 2024 Ernst & Young AB Audit assignment 3 5 Audit activities outside the audit assignment 3 1 Total 6 6 Audit activities outside the audit assignment refer to other review assignments than the statutory audit, such as reviews of interim reports or the Sustainability Report (CSRD). FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 134 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 38 TAX SEK m 2025 2024 Current tax expense (–)/tax income (+) Adjustment of tax related to previous years – –2 Total current tax – –2 Deferred tax expense (–) / tax income (+) Tax relating to temporary differences 0 0 Adjustment of deferred tax related to previous years – –13 Total deferred tax 0 –13 Total tax expense recognised in the Parent Company 0 –15 Reconciliation of effective tax 2025 2024 SEK m % SEK m % Profit before tax 660 427 Tax at the tax rate applicable to the Parent Company –136 20.6 –88 20.6 Non-deductible costs –5 0.7 –2 –0.4 Non-deductible income 141 –21.3 90 –21.0 Tax related to previous years – 0.0 –16 3.6 Total reported effective tax 0 0.0 –15 2.8 NOTE 39 INTEREST-BEARING LIABILITIES SEK m 2025 2024 Interest-bearing non-current liabilities Bank loans 4,008 3,911 Bonds 4,750 4,502 Capitalised borrowing costs –56 –65 Derivatives 14 55 Total 8,716 8,403 Interest-bearing current liabilities Bank loans 216 474 Bonds – 840 Derivatives 39 7 Total 255 1,321 In 2025, capitalised borrowing costs of SEK 14 million (37) were added. These will be allocated to periods across the term of each loan. NOTE 40 OTHER LIABILITIES SEK m 2025 2024 Other current liabilities Employee withholding tax 1 7 VAT liability – 4 Total 1 11 NOTE 41 ACCRUED EXPENSES AND DEFERRED INCOME SEK m 2025 2024 Accrued salaries 1 8 Accrued social security contributions 5 18 Accrued interest expenses 47 46 Other accrued expenses and prepaid income 2 6 Total 55 78 NOTE 42 PROFIT/LOSS FROM PARTICIPATIONS IN GROUP COMPANIES SEK m 2025 2024 Dividends 400 74 Total 400 74 NOTE 43 INTEREST INCOME AND SIMILAR PROFIT ITEMS SEK m 2025 2024 Interest income, Group companies 909 1,229 Interest income and similar profit items, other 483 398 Total 1,392 1,627 NOTE 44 INTEREST EXPENSES AND SIMILAR LOSS ITEMS SEK m 2025 2024 Interest expenses and similar loss items, other 1,301 1,104 Total 1,301 1,104 FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 135 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 45 APPROPRIATIONS SEK m 2025 2024 Excess depreciation 0 0 Group contributions paid –20 –46 Group contributions received 239 – Total 219 –46 NOT 46 CONTINGENT LIABILITIES SEK m 2025 2024 Contingent liabilities Parent Company guarantees 2,133 1,348 Total 2,133 1,348 NOTE 47 PARTICIPATIONS IN GROUP COMPANIES SEK m 2025 2024 Opening cost 10,373 8,878 Internal acquisitions/unconditional shareholder contributions 2,091 1,495 Closing carrying amount 12,464 10,373 The list below includes shares and participations directly held by the Parent Company. For information about shares and participations indirectly held by the Parent Company, see the Group’s Note 30, Participations in Group companies. Company Corporate Identity No. Registered office Equity, 2025 Share of capital and votes Number of shares Carrying amount 31 Dec 2025 Carrying amount 31 Dec 2024 Storskogen Management AB (formerly Industrier) 556803-3012 Stockholm, Sweden – – – – 96 Storskogen 3 Invest AB 559080-4273 Stockholm, Sweden – – – – 2,877 Storskogen Utveckling AB 556970-1229 Stockholm, Sweden – – – – 350 Storskogen Group International AB 559248-2144 Stockholm, Sweden – – – – 7,050 Storskogen Holding AB¹⁾ ²⁾ 559090-6763 Stockholm, Sweden 7,974 100% 101,010 12,464 – Carrying amount 12,464 10,373 1) The carrying value includes unconditional shareholder contributions of SEK 4,570 million (4,422) to an indirectly held subsidia ry in the Group. 2) On 1 September 2025, Storskogen’s holding company structure was changed so that the Parent Company only has a direct holding in Storskogen Holding AB. FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 136 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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NOTE 48 PROPOSED APPROPRIATION OF PROFITS The following amounts in SEK million are at the disposal of the Annual General Meeting: SEK m 2025 2024 Share premium reserve 13,289 13,283 Retained earnings 4,698 4,565 Profit for the year 660 412 Total 18,647 18,259 The Board proposes that the profits be distributed as follows: SEK m 2025 2024 Dividend SEK 13,750,151 [125,001,374 shares * SEK 0.11 per A share] 14 14 Dividend SEK 170,814,473 [1,552,858,845 shares * SEK 0.11 per B share] 171 154 To be carried forward 18,463 18,091 Total 18,647 18,259 NOTE 49 RECEIVABLES FROM GROUP COMPANIES SEK m 2025 2024 Accumulated cost At the beginning of the year 22,457 23,496 Trade receivables –7 –1 Accrued interest income 1 –15 Cash pool receivable –116 579 Loans to Group companies –1,253 –1,597 Derivatives 5 –5 Closing balance, 31 December 21,087 22,457 Carrying amount 21,087 22,457 NOTE 50 TRANSACTIONS WITH RELATED PARTIES Transactions with related parties include loans to subsidiaries, see Note 49, Receivables from Group companies, and remuneration to the Board and senior executives, see the Group’s Note 8, Employees, staff costs and remu- neration to senior executives. There were no other transactions with related parties in 2025. NOTE 51 SPECIFICATIONS TO THE CASH FLOW STATEMENT Adjustment for non-cash items SEK m 2025 2024 Adjustments of profit/loss before tax Anticipated dividends from subsidiaries –326 254 Group contributions that have not been received –219 46 Unrealised exchange rate differences 365 –118 Reversal of capitalised borrowing costs 134 109 Unrealised changes in the fair value of derivatives 0 3 Other non-cash profit/loss items –33 3 Total –79 295 NOTE 52 DISCLOSURES ABOUT THE PARENT COMPANY Storskogen Group AB (publ) is a Swedish limited company with its registered office in Stockholm. The Parent Company’s shares are listed on Nasdaq Stockholm. The consolidated accounts for 2025 include the Parent Company and its subsidiaries, collectively referred to as the Group. ADDRESS OF THE HEAD OFFICE: Storskogen Group AB Hovslagargatan 3 111 48 Stockholm, Sweden storskogen.com FINANCIAL STATEMENTS AND NOTES Storskogen Annual and Sustainability Report 2025 137 INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE CONTENTS Download print-optimised pdf
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Certification by the Board of Directors The Board of Directors and the CEO hereby declare that the annual report were prepared in accordance with generally accepted accounting principles in Sweden and that the consoli- dated accounts were prepared in accordance with international financial reporting standards as referred to in Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards. The annual accounts and consolidated accounts give a fair presentation of the Parent Company's and the Group’s financial position and performance. The Directors' report administration report for the Parent Company and the Group provides a fair view of the Parent Company’s and the Group’s opera- tions, financial position and performance and describes material risks and uncertainties to which the Parent Company and other companies in the Group are exposed. The Board and the CEO hereby certify that the consolidated financial statements and the annual accounts were pre- pared in accordance with the European Sustainability Reporting Standards (ESRS) and the speci- fications adopted under the EU Taxonomy Regulation. As stated above, the annual accounts and the consolidated accounts were approved for publication by the Board of Directors and the CEO on 27 March 2026. The consolidated income statement, statement of comprehensive income and balance sheet and the Parent Company’s income statement and balance sheet are subject to adoption at the Annual General Meeting, which is planned to be held on 6 May 2026. Stockholm, 27 March 2026 Annette Brodin Rampe Chair of the Board Robert Belkic Alexander Bjärgård Board Member Board Member Louise Hedberg Johan Thorell Board Member Board Member Christer Hansson CEO Our audit report on the annual report and consolidated accounts was submitted on 27 March 2026. Our limited assurance report on the statutory sustainability report was submitted on 27 March 2026. Ernst & Young AB Åsa Lundvall Authorised Public Accountant Storskogen Annual and Sustainability Report 2025 138 CONTENTS Download print-optimised pdf CERTIFICATION BY THE BOARD OF DIRECTORS INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE
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REPORT ON THE ANNUAL ACCOUNTS AND CONSOLIDATED ACCOUNTS Opinions We have audited the annual accounts and consolidated accounts of Storskogen Group AB (publ) except for the sustainability report on pages 42-79 and the corporate governance report on pages 32-41 for the financial year 2025. The annual accounts and consolidated accounts of the company are included on pages 22-138 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 com- pany 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 pre- pared 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 Standards, as adopted by the EU, and the Annual Accounts Act. Our opinions do not cover the sustainability report on pages 42-79 and the corporate governance statement on pages 32-41. 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 shareholders adopts the income state- ment and balance sheet for the parent company and the group. Our opinions in this report on the annual accounts and consolidated accounts are consistent with the content of the additional report that has been submitted to the parent company's audit committee 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 gen- erally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. This includes that, based on the best of our knowledge and belief, no prohibited services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided to the audited company or, where applicable, its parent company or its controlled companies within the EU. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Key Audit Matters Key audit matters of the audit are those matters that, in our professional judgment, were of most significance in our audit of the annual accounts and consolidated accounts of the current period. These matters were addressed in the context of our audit of, and in forming our opinion thereon, the annual accounts and consolidated accounts as a whole, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements. Valuation of goodwill Description At 31 December 2025, the total value of goodwill amounts to 18 124 million SEK and is allocated to the group’s different cash generating units. Goodwill must be tested for impairment at least annually and whenever there are indicators of impairment. The test is carried out by comparing the recoverable amount to the carrying value. To calculate the recoverable amount, manage- ment apply significant judgment and estimates regarding future cash flows, perpetual growth rate and discount rates. Disclosures related to the group’s accounting principles are provided in Note 1, significant accounting estimates and judgements are provided in Note 2 and disclosures related to goodwill and the impairment test performed is provided in Note 14. Based on the sig- nificant carrying value of the goodwill and the high degree of management estimate required to perform the impairment tests, we have assessed the valuation of goodwill as a key audit matter in our audit. How our audit addressed this key audit matter In the audit, we have evaluated the group’s process for conducting impairment tests. Based on established criteria, we have further examined how the group identifies cash-generating units. With support from our internal valuation specialists, we have evaluated the valuation methods used. We have assessed the reasonableness of assumptions and reviewed these through con - ducting sensitivity analysis, comparing them to historical outcomes as well as external sources and comparing them to industry benchmarks. Finally, we have reviewed the disclosures pro - vided in the annual report. 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 1-21, 42-79 and 145-152. The other information also includes the remuneration report and was obtained before the date of this auditor’s report. The Board of Directors and the Managing Director are responsible for this other information. Auditor’s report To the general meeting of the shareholders of Storskogen Group AB, corporate identity number 559223-8694 Storskogen Annual and Sustainability Report 2025 139 CONTENTS Download print-optimised pdf AUDITOR'S REPORT INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE
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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 infor- mation. In connection with our audit of the annual accounts and consolidated accounts, our responsi- bility is to read the information identified above and consider whether the information is materi- ally 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 infor- mation otherwise appears to be materially misstated. If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accord- ance 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 mis- statement, whether due to fraud or error. In preparing the annual accounts and consolidated accounts, The Board of Directors and the Managing Director are responsible for the assessment of the company’s and the group’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intends to liquidate the company, to cease operations, or has no realistic alternative but to do so. The Audit Committee shall, without prejudice to the Board of Director’s responsibilities and tasks in general, among other things oversee the company’s financial reporting process. Auditor’s responsibility Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, indi- vidually or in the aggregate, they could reasonably be expected to influence the economic deci- sions of users taken on the basis of these annual accounts and consolidated accounts. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of the company’s internal control relevant to our audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of account- ing estimates and related disclosures made by the Board of Directors and the Managing Director. • Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company’s and the group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw 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. • Evaluate the overall presentation, structure and content of the annual accounts and consoli- dated accounts, including the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair pres- entation. • Plan and perform the group audit to obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the consolidated accounts. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsi- ble 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 signifi- cant 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, actions taken to eliminate threats or related safeguards applied. From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the annual accounts and consolidated accounts, including the most important assessed risks for material misstatement, and are therefore the key audit matters. We describe these matters in the auditor’s report unless law or regulation pre- cludes disclosure about the matter. Storskogen Annual and Sustainability Report 2025 140 CONTENTS Download print-optimised pdf AUDITOR'S REPORT INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE
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REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS Report on the audit of the administration and the proposed appropriations of the company’s profit or loss Opinions In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Managing Director of Storskogen Group AB (publ) for the financial 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 independent of the parent company and the group in accordance with profes- sional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Responsibilities of the Board of Directors and the Managing Director The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is jus- tifiable considering the requirements which the company'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, consolidation requirements, liquidity and position in general. The Board of Directors is responsible for the company’s organization and the administration of the company’s affairs. This includes among other things continuous assessment of the compa- ny’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 otherwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing adminis- tration according to the Board of Directors’ guidelines and instructions 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 dis- charge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit con- ducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropri- ations of the company’s profit or loss are not in accordance with the Companies Act. As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgment and maintain professional skepticism 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 performed are based on our professional judgment with starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the oper- ations and where deviations and violations would have particular importance for the compa- ny’s situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion on the Board of Directors’ proposed appropriations of the company’s profit or loss we examined the Board of Directors’ reasoned statement and a selection of sup- porting evidence in order to be able to assess whether the proposal is in accordance with the Companies Act. The auditor’s examination of the ESEF report Opinion In addition to our audit of the annual accounts and consolidated accounts, we have also exam- ined that the Board of Directors and the Managing Director have prepared the annual accounts and consolidated accounts in a format that enables uniform electronic reporting (the Esef report) pursuant to Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528) for Storskogen Group AB for the financial year 2025. Our examination and our opinion relate only to the statutory requirements. In our opinion, the Esef report has been prepared in a format that, in all material respects, enables uniform electronic reporting. Basis for opinion We have performed the examination in accordance with FAR’s recommendation RevR 18 Examination of the ESEF report. Our responsibility under this recommendation is described in more detail in the Auditors' responsibility section. We are independent of Storskogen Group AB in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Storskogen Annual and Sustainability Report 2025 141 CONTENTS Download print-optimised pdf AUDITOR'S REPORT INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE
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Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the Esef report in accordance with Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528), and for such internal control that the Board of Directors and the Managing Director determine is necessary to prepare the Esef report without material misstatements, whether due to fraud or error. Auditor’s responsibility Our responsibility is to obtain reasonable assurance whether the Esef report is in all material respects prepared in a format that meets the requirements of Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528), based on the procedures performed. RevR 18 requires us to plan and execute procedures to achieve reasonable assurance that the Esef report is prepared in a format that meets these requirements. Reasonable assurance is a high level of assurance, but it is not a guarantee that an engage- ment carried out according to RevR 18 and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Esef report. The audit firm applies ISQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or other Assurance or Related Services Engagements which requires the firm to design, implement and operate a system of quality management, including policies and procedures regarding compliance with professional ethical requirements, professional standards and applicable legal and regulatory requirements. The examination involves obtaining evidence, through various procedures, that the Esef report has been prepared in a format that enables uniform electronic reporting of the annual and con- solidated accounts. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement in the report, whether due to fraud or error. In carrying out this risk assessment, and in order to design audit procedures that are appropriate in the circumstances, the auditor considers those elements of internal control that are relevant to the preparation of the Esef report by the Board of Directors and the Managing Director, but not for the purpose of expressing an opinion on the effectiveness of those internal controls. The exami- nation also includes an evaluation of the appropriateness and reasonableness of assumptions made by the Board of Directors and the Managing Director. The procedures mainly include a validation that the Esef report has been prepared in a valid XHTML format and a reconciliation of the Esef report with the audited annual accounts and con- solidated accounts. Furthermore, the procedures also include an assessment of whether the consolidated state- ment of financial performance, financial position, changes in equity, cash flow and disclosures in the Esef report have been marked with iXBRL in accordance with what follows from the Esef reg- ulation. The auditor’s examination of the corporate governance statement The Board of Directors is responsible for that the corporate governance statement on pages 32-41 has been prepared in accordance with the Annual Accounts Act. Our examination of the corporate governance statement is conducted in accordance with FAR´s standard RevR 16 The auditor´s examination of the corporate 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. A corporate governance statement has been prepared. Disclosures in accordance with chap- ter 6 section 6 the second paragraph points 2-6 of the Annual Accounts Act and chapter 7 sec- tion 31 the second paragraph the same law are consistent with the other parts of the annual accounts and consolidated accounts and are in accordance with the Annual Accounts Act. Ernst & Young AB with Åsa Lundvall as auditor in charge, Box 7850, Hamngatan 26 Stockholm, was appointed auditor of Storskogen Group AB (publ) by the general meeting of the share- holders on the 7 May 2025 and has been the company’s auditor since the 24 October 2019. Storskogen Group AB (publ) has been a company of general public interest since 6 October 2021. Stockholm, 27 March 2026 Ernst & Young AB Åsa Lundvall Authorised Public Accountant Storskogen Annual and Sustainability Report 2025 142 CONTENTS Download print-optimised pdf AUDITOR'S REPORT INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE
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Auditor’s limited assurance report on Storskogen Group AB’s sustainability statement To the General Meeting of the shareholders Storskogen Group AB, corporate identity number 559223-8694 Conclusion We have conducted a limited assurance engagement of the sustainability statement prepared by Storskogen Group AB (the company) for the financial year 2025. The sustainability statement is included on page 42-79 of 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 sustainabil- ity statement is not, in all material respects, prepared in accordance with the Swedish Annual Accounts Act, which includes: • Whether the sustainability statement meets the requirements of ESRS • Whether the process carried out by the company to identify reported sustainability information has been conducted as described in the sustainability statement; and • Compliance with the reporting requirements in Article 8 of the EU’s Green Taxonomy Regulation. Basis for Conclusion We have conducted the limited assurance engagement in accordance with FAR’s recommen- dation RevR 19 – Revisorns översiktliga granskning av den lagstadgade hållbarhetsrapporten. Our responsibility under this recommendation is described in more detail in the section Auditor’s Responsibility. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Other Information than the sustainability statement This document also contains other information than the sustainability statement, found on pages 1-41 and 80-152. The Board of Directors and the Managing Director are responsible for this other information. Our conclusion on the sustainability statement does not cover this other information, and we do not express any conclusion with assurance regarding this other information. In connection with our limited assurance engagement on the sustainability statement, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the sustainability statement. In this procedure we also take into account our knowledge otherwise obtained in the limited assurance engagement and assess whether the information otherwise appears to be materially misstated. If we based on the work performed concerning this information, conclude that there is a mate- rial misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Other matter The sustainability statement for the previous financial year 2024 has not been subject to a limited assurance engagement according to RevR 19 Revisorns översiktliga granskning av den lagstad- gade hållbarhetsrapporten. Therefore, no limited assurance engagement of comparative figures in the sustainability statement for 2025 has been performed. Responsibilities of the Board of directors and Managing Director The Board of Directors, and the Managing Director, are responsible for the preparation of sustain- ability statement in accordance with Chapter 6, Sections 12–12f of the Swedish Annual Accounts Act, and for such internal control as the Board of Directors and the Managing Director 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 whether the sustainability statement is prepared in accordance with Chapter 6, Sections 12–12 f of the Swedish Annual Accounts Act based on our limited assurance engagement. The limited assurance engagement has been conducted in accordance with FAR’s recom- mendation RevR 19 Revisorns översiktliga granskning av den lagstadgade hållbarhetsrapporten. This recommendation requires that we plan and perform our procedures to obtain limited assur- ance that the sustainability 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 reasonable assurance engagement. Consequently, the level of assur- ance 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 signif- icant matters that could have been identified 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 manage a quality management system including guidelines or procedures regarding compliance with ethical requirements, standards of professional practice, and applicable laws and regulations. We are independent of Storskogen Group AB (publ) in accordance with professional ethics for accountants in in Sweden and have otherwise fulfilled our ethical responsibilities according to these requirements. Storskogen Annual and Sustainability Report 2025 143 CONTENTS Download print-optimised pdf LIMITED ASSURANCE REPORT INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE
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A limited assurance engagement involves performing procedures to obtain evidence to sup- port the sustainability information. The auditor selects the procedures to be performed, includ- ing 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 prepares the sustainability statement, in order to design procedures that are appropriate under the circumstances, but not for the purpose of providing a conclusion on the effectiveness of the company’s internal control. The review consists of making inquiries, primarily of persons responsible for the preparation of the sustainability statement, performing analytical review, and conducting other limited review pro- cedures. The review procedures primarily include: Our review procedures regarding the process the company have undertaken to identify sustain- ability information to report included, but were not limited to the following: • Obtaining an understanding of the process by: • Conducting inquiries to understand the sources of the information used by management (e.g., stakeholder dialogues, business plans, and strategy documents), and • Reviewing the company’s internal documentation of its process; and • Evaluating whether the information obtained from our procedures regarding the process imple- mented by the company aligns with the description of the process in the sustainability state- ment. Our review procedures regarding the sustainability statement included, but were not limited to the following: • Through inquiries, obtaining a general understanding of the internal control environment, reporting processes, and information systems relevant to the preparation of the information in the sustainability statement. • Evaluating whether information identified as material through the process the company has undertaken to identify the content of the sustainability statement is also included. • Evaluating whether the structure and presentation of the sustainability statements are consist- ent with the requirements of ESRS; • Conducting inquiries with relevant personnel and analytical review procedures regarding selected disclosures in the sustainability statements; • Performing substantive review procedures based on a sample of selected disclosures in the sustainability statements; • Obtain, through inquiries and analytical review procedures, support for the methods used for preparing material estimates and forward-looking information and on how these methods were applied; Obtaining an understanding of the process for identifying economic activities that are covered by and are consistent with the EU Green Taxonomy and the corresponding disclosures in the sus- tainability statement. The review of the taxonomy disclosures included but was not limited to the following review procedures: • Conducting inquiries to relevant personnel and analytical review procedures on the taxonomy disclosures • Conducting inquiries to understand the sources of the information used in the taxonomy disclo- sures • Evaluating whether the presentation of the taxonomy disclosures is consistent with the require- ments of the EU Taxonomy Regulation • Performing substantive review procedures based on a sample of selected disclosures in the sustainability statement regarding the EU Green Taxonomy Inherent limitations In reporting forward-looking information in accordance with ESRS, the board and management of Storskogen Group AB must prepare forward-looking information based on specified assump- tions about events that may occur in the future and possible future activities of Storskogen Group AB. Actual outcomes are likely to differ as expected often do not occur as anticipated. Stockholm, 27 March 2026 Ernst & Young AB Åsa Lundvall Authorised Public Accountant Storskogen Annual and Sustainability Report 2025 144 CONTENTS Download print-optimised pdf LIMITED ASSURANCE REPORT INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE
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Definitions of alternative performance measures KEY PERFORMANCE INDICATORS Storskogen presents several performance measures that are not defined in accordance with IFRS. These constitute alternative performance measures and are used to supplement the financial measures defined according to IFRS. The Company is of the view that these measures provide investors and the Company’s management with additional information on the Group’s financial trends and performance. As alternative performance measures are not calculated uni- formly, they are not always comparable to those used by other companies. Consequently, they should not be regarded as replacing measures defined in accordance with IFRS. Definitions of Storskogen’s alternative performance measures are presented below. Return on equity Profit for the year (including profit/loss from non-controlling interests) as a percentage of total equity (including equity attributable to non-controlling interests). Profit/loss is accu- mulated for the most recent 12-month period and equity is calculated as the average value in the last 12-month period. The pur- pose is to analyse profitability in relation to equity attributable to the shareholders of the Parent Company. SEK m 2025 2024 Profit for the year 1,199 116 Equity 20,540 20,393 Return on equity, % 5.8 0.6 Return on equity, adjusted Profit/loss for the year adjusted for items affecting comparability as a percentage of total equity. Profit/loss is accumulated for the most recent 12-month period and equity is calculated as the average value in the last 12-month period. The purpose is to analyse profitability in relation to equity attributable to the shareholders of the Parent Company. SEK m 2025 2024 Profit for the year 1,199 116 Reversal of items affecting comparability, profit for the year 109 1,019 Profit for the year, adjusted 1,308 1,135 Equity 20,540 20,393 Return on equity, adjusted, % 6.4 5.6 Return on working capital Adjusted EBITA as a percentage of working capital. Working capital is calculated as the average value in the previous 12-month period. The purpose is to analyse profitability in relation to working capital. SEK m 2025 2024 Adjusted EBITA 3,117 3,229 Working capital 5,015 5,169 Return on working capital, % 62.2 62.5 Return on capital employed Adjusted EBITA as a percentage of capital employed. Adjusted EBITA is calculated accumulated for the previous 12-month period. Capital employed is calculated as the average value in the previous 12-month period. The purpose is to analyse profitability in relation to capital employed. From the first quarter of 2025, a new definition of the key performance measure is used. The perfor- mance measure Adjusted EBITA replaces the previous use of operating profit plus interest income. The definition of capital employed excludes current investment and cash and cash equivalents. According to the previous definition, the return on capital employed for the year would have been 7.7 percent (4.7). SEK m 2025 2024 Adjusted EBITA 3,117 3,229 Capital employed 30,446 31,126 Return on capital employed, % 10.2 10.4 Net financial items The table shows a division of net financial items into interest income, interest expenses, other financial expenses and exchange rate fluctuations. The aim is to provide a more detailed view of the composition and trends related to net financial items. SEK m 2025 2024 Interest income 61 51 Interest expense –768 –934 Financial expenses –50 –100 Exchange rate fluctuations and other –49 –16 NET FINANCIAL ITEMS –806 –999 Adjusted EBITA Operating profit (EBIT) before the amortisa- tion and impairment of intangible assets, excluding items affecting comparability. The purpose is to assess the Group’s operating activities. Adjusted EBITA facilitates compari- sons of EBITA between periods. SEK m 2025 2024 EBITA 3,088 3,013 Reversal of items affecting comparability, EBITA 29 216 Adjusted EBITA 3,117 3,229 Adjusted EBITA margin Adjusted EBITA as a percentage of net sales. The purpose is to provide a guide to profita- bility in relation to sales. SEK m 2025 2024 Adjusted EBITA 3,117 3,229 Net sales 33,097 34,182 Adjusted EBITA margin, % 9.4 9.4 Adjusted EBITDA Operating profit (EBIT) before amortisation, depreciation and impairment, but excluding items affecting comparability. The purpose is to assess the Group’s operating activities. EBITDA serves as a complement to operating profit. Adjusted EBITDA facilitates compari- sons of EBITDA between periods. SEK m 2025 2024 EBITDA 4,141 4,223 Items affecting comparability, EBITDA 29 81 Adjusted EBITDA 4,170 4,303Storskogen Annual and Sustainability Report 2025 145 CONTENTS Download print-optimised pdf DEFINITION OF KEY PERFORMANCE INDICATORS INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE
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Adjusted cash conversion Operating cash flow as a percentage of adjusted EBITDA. The purpose is to analyse cash conversion. From the first quarter of 2025, a new definition of the key performance measure is used. According to the updated definition, net investments in intangible assets are included in the definition of CapEx. According to the previous definition, adjusted cash conversion was 76 percent (97). SEK m 2025 2024 Adjusted EBITDA 4,170 4,303 Change in working capital –551 370 Net investments in property, plant and equipment, defined as CapEx –542 –614 Operating cash flow 3,077 4,060 Adjusted EBITDA 4,170 4,303 Adjusted cash conversion, % 73.8 94.3 Adjusted diluted earnings per share The purpose is to increase comparability between periods by showing earnings per share based on adjusted profit, where items affecting comparability have been excluded to provide a better reflection of the underly- ing profit generation. 2025 2024 Profit/loss attributable to the shareholders of the Parent Company, SEK m 1,063 -52 Items affecting comparability, SEK m 109 1,019 Total 1,172 967 Total weighted average number of shares after dilution, million 1,686 1,687 Adjusted diluted earnings per share, SEK 0.70 0.57 Items affecting comparability Items affecting comparability refer to reve- nue and non-recurring costs, which are of an unusual nature or attributable to structural changes and cannot be considered to form part of current operations. Items are classi- fied as items affecting comparability when they are deemed to affect comparability between periods. SEK m 2025 2024 Remeasurement of contingent considerations –10 –12 Stamp duty on foreign business combinations –3 –3 Central restructuring costs –9 –15 Capital gains/loss from divestments of businesses –7 –50 Items affecting comparability, EBITDA –29 –81 Impairment of property, plant and equipment – –135 Items affecting comparability, EBITA –29 –216 Impairment of intangible assets – –731 Items affecting comparability, EBIT –29 –947 Non-recurring financial expenses (related to business divestments), before tax – –20 Non-recurring items related to the refinancing of interest-bearing liabilities, before tax –80 –52 Items affecting comparability, profit for the period –109 –1,019 Interest-bearing net debt Interest-bearing liabilities (i.e. non-current interest-bearing liabilities, non-current lease liabilities, current interest-bearing liabilities, current lease liabilities and interest-bearing pension provisions) minus financial assets, current investments and cash and cash equivalents. The purpose is to provide an alternative measure of the Group’s debt/ equity ratio. This performance measure gives an indication of the Group’s financial target with regard to net debt in relation to adjusted RTM EBITDA. SEK m Note 31 Dec 2025 31 Dec 2024 Interest-bearing liabilities 20 9,293 9,998 Lease liabilities 20 1,551 1,606 Pension provisions, net 21 204 251 Financial assets –203 –263 Current investments 25 0 0 Cash and cash equivalents 18 –1,332 –1,899 Interest-bearing net debt 9,514 9,693 Interest-bearing net debt/ adjusted RTM EBITDA Interest-bearing net debt in relation to adjusted RTM EBITDA is a liquidity measure for net debt in relation to cash-generating oper- ating profit. Net debt is based on the report- ing date. Adjusted RTM EBITDA is calculated as adjusted EBITDA recorded in the previous 12-month period adjusted for the contribu- tion from businesses acquired in the period, excluding companies divested during the entire period. The purpose is to provide an indication of the Group’s ability to pay its debts. This performance measure gives an indication of the Group’s financial target with regard to net debt in relation to adjusted RTM EBITDA. SEK m 31 Dec 2025 31 Dec 2024 Interest-bearing net debt 9,514 9,693 Adjusted RTM EBITDA 4,166 4,258 Interest-bearing net debt/ adjusted RTM EBITDA, x 2.3 2.3 Net debt Interest-bearing liabilities (i.e. non-current interest-bearing liabilities, non-current lease liabilities, current interest-bearing liabilities, current lease liabilities and pension provi- sions), including minority options and future contingent consideration, less financial assets, current investments and cash and cash equivalents. This measure is used to calculate the Group’s debt/equity ratio. SEK m Note 31 Dec 2025 31 Dec 2024 Interest-bearing liabilities 20 9,293 9,998 Lease liabilities 20 1,551 1,606 Pension provisions, net 21 204 251 Contingent considerations 23 75 57 Minority options 23 1,473 1,883 Financial assets –203 –263 Current investments 25 0 0 Cash and cash equivalents 18 –1,332 –1,899 Net debt 11,061 11,633 Organic EBITA growth Changes in EBITA, excluding currency translation, acquisition and divestment effects and adjusted for Group functions, compared with the same period the previous year. Acquired entities are included in organic EBITA growth once they have been part of the Group for the full comparison period; divested companies are excluded from both periods once they have been divested. Currency translation effects, which are excluded in the organic selection, refer to translation of the income statement, while transactional effects related to remeasurements in the balance sheet are not excluded. The purpose is to analyse underlying growth in operating profit. Storskogen Annual and Sustainability Report 2025 146 CONTENTS Download print-optimised pdf DEFINITION OF KEY PERFORMANCE INDICATORS INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE
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Organic net sales growth (organic growth) Changes in net sales, excluding currency translation, acquisition and divestment effects, compared with the same period the previous year. Acquired entities are included in organic growth once they have been part of the Group for the full comparison period; divested companies are excluded from both periods once they have been divested. The purpose is to analyse underlying net sales growth. Interest coverage ratio Operating profit plus interest income divided by interest expenses. The purpose is to pres- ent earnings in relation to interest expenses, which is a measure of the Group’s capacity to cover its interest expenses. SEK m 2025 2024 Operating profit 2,391 1,492 Interest income 61 51 Operating profit including interest income 2,452 1,543 Interest expense –768 –934 Interest coverage ratio, x 3.2 1.7 Working capital Working capital is calculated as current oper- ating receivables (inventories, trade receiva- bles and other non-interest-bearing current receivables) less current operating liabilities (trade payables and other non-interest-bear- ing current liabilities, excluding future contin- gent considerations). The components are calculated as the average for the previous 12-month period. The purpose is to analyse the capital tied up in the balance sheet by the Group’s operating activities. SEK m 2025 2024 Inventories 4,420 4,517 Trade receivables 4,195 4,596 Other current receivables 2,654 2,683 Trade payables –2,584 –2,630 Other current liabilities –3,669 –3,996 Working capital 5,015 5,169 Operating margin Operating profit (EBIT) as a percentage of net sales. The purpose is to provide a guide to profitability in relation to sales. SEK m 2025 2024 Operating profit 2,391 1,492 Net sales 33,097 34,182 Operating margin, % 7.2 4.4 Debt/equity ratio Net debt divided by total equity, including the minority share of equity. The purpose is to show the size of the debt in relation to equity, i.e. as a measure of capital strength and financial risk. SEK m 31 Dec 2025 31 Dec 2024 Net debt 11,061 11,633 Equity 20,599 20,807 Debt/equity ratio, x 0.5 0.6 Equity/assets ratio Total equity, including the minority share of equity, as a percentage of total assets. The purpose is to show the proportion of assets that are financed with equity. SEK m 31 Dec 2025 31 Dec 2024 Equity 20,599 20,807 Total assets 41,455 43,180 Equity/assets ratio, % 49.7 48.2 Capital employed Total assets less non-interest-bearing liabili- ties, provisions, current investments and cash and cash equivalents. The components are calculated as the average for the previous 12-month period. The purpose is to track the amount of capital that is employed in opera- tions and financed by shareholders and lenders. From the first quarter of 2025, a new definition of the key performance measure is used. According to the updated definition, capital employed is calculated with deduc- tions for current investments and cash and cash equivalents. According to the previous definition, capital employed would have been SEK 31,767 million (32,654). SEK m 2025 2024 Total assets 42,208 44,011 Non-interest-bearing liabilities –8,546 –9,267 Provisions –1,895 –2,090 Current investments and cash and cash equivalents –1,321 –1,529 Capital employed 30,446 31,126 Storskogen Annual and Sustainability Report 2025 147 CONTENTS Download print-optimised pdf DEFINITION OF KEY PERFORMANCE INDICATORS INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS FINANCIAL STATEMENTS AND NOTES CERTIFICATION BY THE BOARD OF DIRECTORS AUDITOR'S REPORT LIMITED ASSURANCE REPORT DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES THE STORSKOGEN SHARE
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The Storskogen share INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE THE SHARE INFORMATION TO SHAREHOLDERS GLOSSARY CONTENTS Download print-optimised pdf
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Share price performance and trading In 2025, Storskogen’s share price rose by 2.0 percent. The Stockholm Stock Exchange (OMXSPI) rose by 9.5 percent during the same period. Between 2 January and 30 December, 975 million Storskogen shares in total were traded on Nasdaq Stockholm, corresponding to a value of SEK 11.3 billion. On average, approximately 3.9 million shares were traded every day. The turnover rate for Storskogen’s B shares on Nasdaq Stockholm was 58 percent between 2 January and 30 December 2025. Ownership structure On 30 December, Storskogen had 35,321 shareholders. The largest shareholder in terms of capital was AMF Pension & Fonder, which held 9.8 percent of the capital and 5.9 percent of the votes. The largest owner in terms of votes was Alexander Bjärgård, who held 14.2 percent of the votes and 3.6 percent of the capital. The ten largest shareholders held 40.4 percent of the capital and 64.3 percent of the votes in Storskogen. The largest shareholder group consisted of Swedish private individuals who held just over 35 percent of the capital and just over 60 percent of the votes at the end of 2025. The majority of shareholders were located in Sweden. From the first day of trading on 2 January to the last day of trading on 30 December 2025, Storskogen’s share price rose by 2 percent to SEK 11.74. During the year, 975 million shares in total were traded on Nasdaq Stockholm, corresponding to a value of approximately SEK 11.3 billion. Storskogen had 35,321 shareholders at the end of 2025. The share Data per share Basic and diluted earnings per share (SEK) 0.63 Adjusted diluted earnings per share (SEK) 0.70 Last closing price (SEK) 11.74 Lowest closing price (SEK) 9.30 Highest closing price (SEK) 15.82 Turnover rate, Nasdaq Stockholm (%) 58 Average daily turnover, Nasdaq Stockholm (thousand shares) 3,916 Share capital (SEK) 860,230 Quotient value1) (SEK) 0.00051 Number of outstanding A shares 125,001,374 Number of outstanding B shares 1,561,723,845 Market capitalisation at year-end (SEK m) 19,802 1) Of series A and B. Largest shareholders STOR A STOR B Capital Votes AMF Pension & Fonder 165,859,498 9.8% 5.9% Swedbank Robur Fonder 79,505,974 4.7% 2.8% Movestic Livförsäkring AB 68,189,162 4.0% 2.4% Alexander Bjärgård 37,539,070 22,856,471 3.6% 14.2% Vanguard 57,961,274 3.4% 2.1% Futur Pension 55,667,783 3.3% 2.0% Handelsbanken Fonder 52,080,863 3.1% 1.9% Peter Ahlgren 33,921,910 16,428,267 3.0% 12.6% Ronnie Bergström with companies1) 38,270,254 8,998,504 2.8% 13.9% Daniel Kaplan with companies2) 15,270,140 29,189,905 2.6% 6.5% Total largest owners 125,001,374 556,737,701 40.4% 64.3% Other 996,921,144 59.1% 35.5% Repurchased own shares 8,065,000 0.5% 0.3% Total 125,001,374 1,561,723,845 100.0% 100.0% Source: Modular Finance AB 1) Including shares held by Ängsmon AB. 2) Including shares held by Firm Factory AB and Wombat Investments AB. Ownership by type of owner Swedish private individuals, 35.4% Swedish institutional owners, 27.7% Foreign institutional owners, 18.6% Other, 10.0% Anonymous ownership, 8.3% Ownership by geographical area Sweden, 70.6% USA, 11.7% Norway, 5.3% United Kingdom, 1.5% Other, 10.9% (including anonymous ownership) Source: Modular Finance AB Storskogen Annual and Sustainability Report 2025 149 THE STORSKOGEN SHARE INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE THE SHARE INFORMATION TO SHAREHOLDERS GLOSSARY CONTENTS Download print-optimised pdf
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Share capital development On 31 December 2025, the share capital in Storskogen was SEK 860,230. The share capital was divided into 125,001,374 A shares and 1,561,723,845 B shares. The quotient value was SEK 0.00051 per share. Number of shares Date Event Change in number of A shares Change in number of B shares Number of A shares after event Number of B shares after event Opening balance, 1 Jan 2025 - - 142,001,374 1,544,723,845 4 Apr 2025 Conversion of Class A shares to Class B shares -10,000,000 10,000,000 132,001,374 1,554,723,845 23 Dec 2025 Conversion of Class A shares to Class B shares -7,000,000 7,000,000 125,001,374 1,561,723,845 As at 31 Dec 2025 125,001,374 1,561,723,845 Share capital development, 2025Share price performance and turnover, 2025 Number of shares traded per week, millions Storskogen B OMX Stockholm PI Number of shares traded 0 10 20 30 40 50 60 70 80 90 SEK JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 0 2 4 6 8 10 12 14 16 18 Annual General Meeting 2026 The Annual General Meeting of Storskogen Group will be held on 6 May 2026 at 10:00. Information on how to register, how shareholders can exercise their voting rights or have a matter considered at the Annual General Meeting, and on proxies and assistants, is provided in the notice of the Annual General Meeting. Information is also available on Storskogen’s website, storskogen.com. Financial calendar 29 April 2026 Interim report Q1 2026 6 May 2026 Annual General Meeting 2026 11 August 2026 Interim report Q2 2026 23 October 2026 Interim report Q3 2026 Analysts For information on analysts who cover Storskogen, please visit storskogen.com. Investor contact If you have queries about Storskogen or wish to receive investor information, please contact ir@storskogen.com. Dividend policy Storskogen’s Board of Directors has adopted a dividend policy that states that dividends shall correspond to 0 to 20 percent of the profit for the year. Holders of B and A shares are equally entitled to dividends. For the 2025 financial year, a dividend of SEK 0.11 per share has been proposed. The proposed dividend corresponds to approximately SEK 185 million or 15.4 percent of the total profit for the Group in 2025. Dividends The Board and CEO propose a dividend for 2025 of SEK 0.11 per share, corresponding to SEK 185 million. The proposed record date is 8 May, and the payment will be made through Euroclear on 13 May, provided that the resolution is passed by the Annual General Meeting. Storskogen Annual and Sustainability Report 2025 150 THE STORSKOGEN SHARE INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE THE SHARE INFORMATION TO SHAREHOLDERS GLOSSARY CONTENTS Download print-optimised pdf
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Glossary ORGANISATION Central organisation Storskogen’s central operations in Sweden, Norway, Germany, Switzerland, Singapore and the United Kingdom. Business area Storskogen’s three business areas, Services, Trade and Industry. Vertical In the 2025 financial year, Storskogen had seven underlying verticals in the business areas Services (2), Trade (2) and Industry (3). The verticals are specialised in various industries and operations in each business area. A vertical is a component of the Group that engages in business activities from which it may earn revenues and incur expenses and for which discrete financial information is available. The verticals constitute the Group’s cash-generating units. Business units Storskogen’s companies, including their subsidiaries, constitute business units. Storskogen has chosen to highlight business units rather than individual companies or legal entities, as this reflects the level of the organisation at which Storskogen supports these companies through board-level representation. Operating segments An accounting term used to describe Storskogen’s business areas (used only in financial statements and notes). Knowledge Exchange (KX) Storskogen’s platform for collaboration and knowledge sharing between business units. ESG Corporate Sustainability Reporting Directive (CSRD) The new EU Directive on sustainability reporting, which imposes more extensive requirements on companies to report sustainability information in a comparable, reliable and standardised manner. European Sustainability Reporting Standards (ESRS) The joint European standards that set out how companies shall report pursuant to the CSRD. The ESRS specifies the disclosures required in the areas of environment, social, and governance. Greenhouse Gas Protocol (GHG) International standards used to calculate and report the climate impact of Storskogen’s operations in the form of direct and indirect greenhouse gas emissions, divided into three categories (Scope 1–3). Paris Agreement Global climate agreement aimed at keeping global warming well below 2 degrees and striving to limit it to 1.5 degrees. Science Based Targets initiative (SBTi) Initiative and framework that helps companies set science-based climate targets, specifying how much and how quickly they need to reduce their carbon emissions to meet the targets of the Paris Agreement. CO 2e, carbon dioxide equivalents A metric that, by converting various greenhouse gases into the greenhouse effect of carbon dioxide, enables comparison and aggregation of different types of greenhouse gases. ISO 9001/14001/45001 Internationally accepted standards. ISO 9001 includes aspects of quality management, ISO 14001 includes aspects of environmental management and 45001 includes aspects of occupational health and safety. Task Force on Climate-Related Financial Disclosures (TCFD) A framework that helps organisations survey and mitigate climate-related financial risks. Storskogen Annual and Sustainability Report 2025 151 GLOSSARY INTRODUCTION STRATEGY & BUSINESS MODEL BUSINESS AREAS DIRECTORS’ REPORT CORPORATE GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS THE STORSKOGEN SHARE THE SHARE INFORMATION TO SHAREHOLDERS GLOSSARY CONTENTS Download print-optimised pdf
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Additional information Annual reports, interim reports and other relevant information for shareholders are available on: https://www.storskogen.com/investors/ Production: Storskogen in cooperation with Addira Photo: Fredrik Rege, Kristian Pohl, Peter Hoelstad, Magnus Caris Printed by: Allin Strängnäs Storskogen Group AB (publ) Hovslagargatan 3, 111 48 Stockholm, Sweden www.storskogen.com info@storskogen.com storskogen.com