Year-end Report 2025

Reporting period January – December

• Net sales increased 8.1 per cent to SEK 28,251 (26,137) million. Organically, net sales grew by 4.2 per cent.
• EBITA increased 6.8 per cent to SEK 6,318 (5,917) million.
• The EBITA margin was 22.4 (22.6) per cent.
• Profit before tax grew 6.8 per cent to SEK 4,756 (4,454) million.
• Net profit for the period grew 9.6 per cent to SEK 3,669 (3,349) million.
• Earnings per share increased 10.0 per cent to SEK 8.00 (7.27).
• Cash flow from operating activities increased 10.7 per cent to SEK 5,124 (4,630) million.
• 16 new businesses were consolidated during the year with estimated total annual net sales of about SEK 2.2 billion on the acquisition dates.
• Dividend per share is proposed at SEK 2.70 (2.40) per share, corresponding to SEK 1,226.4 (1,090.1) million.

Reporting period October – December

• Net sales increased 5.7 per cent to SEK 7,534 (7,125) million. Organically, net sales grew by 3.8 per cent.
• EBITA increased 5.2 per cent to SEK 1,717 (1,633) million.
• The EBITA margin was 22.8 (22.9) per cent.
• Profit before tax grew 4.7 per cent to SEK 1,319 (1,260) million.
• Net profit for the period grew 7.0 per cent to SEK 1,046 (978) million.
• Cash flow from operating activities increased 22.8 per cent to SEK 1,986 (1,617) million.

Summary of financial performance

Comments from the CEO

Lifco’s primary goal is to increase its earnings every year through organic growth and acquisitions. Net sales increased 8.1 per cent in 2025 to SEK 28,251 (26,137) million through acquisitions and organic growth in every business area. Exchange rate effects had a negative impact on sales of 3.5 per cent. During the year, EBITA increased 6.8 per cent to SEK 6,318 (5,917) million and the EBITA margin amounted to 22.4 (22.6) per cent.

Sales increased 5.7 per cent to SEK 7,534 (7,125) million in the fourth quarter, driven by acquisitions and organic growth. Exchange rate effects had a negative impact on sales of 5.2 per cent during the quarter. EBITA increased 5.2 per cent to SEK 1,717 (1,633) million during the quarter and the EBITA margin was 22.8 (22.9) per cent.

Earnings per share increased 10.0 per cent in 2025 to SEK 8.00 (7.27) and cash flow from operating activities increased 10.7 per cent to SEK 5,124 (4,630) million.

During the year, Lifco consolidated 16 acquisitions, of which six in the Dental business area and ten in Systems Solutions. The acquisitions include three companies in Italy, the Netherlands and the UK, two in Germany and one each in Denmark, San Marino, Switzerland, Sweden and Austria. These companies are highly specialised and market leaders in their respective niches. The acquisitions had a net positive impact on Lifco’s results and financial position during the year.

Lifco has a loan framework of SEK 8 billion in its MTN programme and bonds outstanding totalling SEK 4,750 million. Lifco’s financial position remains solid and interest-bearing net debt amounted to 1.1 times EBITDA at 31 December 2025, which is well in line with our target of interest-bearing net debt of a maximum of three times EBITDA and means that Lifco possesses the financial scope to make additional acquisitions.

Per Waldemarson
President and CEO

GROUP PERFORMANCE IN JANUARY – DECEMBER
Net sales increased 8.1 per cent to SEK 28,251 (26,137) million. Acquisitions contributed 7.4 per cent and organic growth amounted to 4.2 per cent. Exchange rate effects had a negative impact on sales of 3.5 per cent. All three business areas contributed to the organic growth.

The Italian companies Nobil Bio Ricerche, Toppy and UR FOG, the Dutch companies Citodent Imaging, Klemko Group and HedoN Electronic Developments, the UK companies DB Orthodontics, Heavy Duty Parts and MaxiMover, the German companies Fraga Dental and HEGUtechnik, the Swiss company Arnold Deppeler, the Swedish company Gestenco International, the Sammarinese company Italgears, the Danish company R&T Stainless and the Austrian company Stöffl were consolidated during the year. These acquisitions had estimated total annual net sales of about SEK 2.2 billion on the acquisition dates.

EBITA increased 6.8 per cent to SEK 6,318 (5,917) million, driven by acquisitions, and the EBITA margin amounted to 22.4 (22.6) per cent. Exchange rate changes had a negative impact on EBITA of 3.1 per cent.

During the year, 47 (46) per cent of EBITA was generated in EUR, 17 (18) per cent in SEK, 14 (14) per cent in GBP, 9 (11) per cent in NOK, 6 (5) per cent in DKK, 2 (3) per cent in USD and 4 (3) per cent in other currencies.

Net financial items improved to SEK -414 (-442) million.

Profit before tax grew 6.8 per cent to SEK 4,756 (4,454) million. Net profit for the period grew 9.6 per cent to SEK 3,669 (3,349) million.

Average capital employed excluding goodwill increased SEK 138 million during the year to
SEK 4,770 million at 31 December 2025, compared with SEK 4,632 million at 31 December 2024. EBITA in relation to average capital employed excluding goodwill was at 132 per cent at year-end and increased by 4 percentage points during the year.

The Group’s net debt increased SEK 454 million from 31 December 2024 to SEK 12,048 million at 31 December 2025, of which liabilities related to put/call options for acquisitions increased SEK 294 million to SEK 2,930 million. Interest-bearing net debt increased during the year by SEK 51 million to SEK 7,801 million at 31 December 2025.

On 31 December 2025, Lifco had bonds outstanding totalling SEK 4,750 million. In addition to bonds outstanding, Lifco has standard short-term credit facilities.

The net debt/equity ratio at 31 December 2025 was 0.6 and was unchanged compared with 31 December 2024. Net debt in relation to EBITDA was 1.7 (1.8) and interest-bearing net debt in relation to EBITDA was 1.1 (1.2) times at 31 December 2025. At the end of 2025, 32 (37) per cent of the Group’s interest-bearing liabilities were denominated in EUR.

Cash flow from operating activities increased 10.7 per cent to SEK 5,124 (4,630) million during the year. Cash flow from investing activities was SEK -3,833 (-3,338) million, which was mainly attributable to acquisitions.

GROUP PERFORMANCE IN THE FOURTH QUARTER
Net sales increased 5.7 per cent to SEK 7,534 (7,125) million in the fourth quarter. Acquisitions contributed 7.2 per cent and organic growth amounted to 3.8 per cent. Exchange rate changes had a negative impact of 5.2 per cent. The increase in sales in the quarter was due to acquisitions in Systems Solutions and organic growth in Demolition & Tools and Systems Solutions.

EBITA increased 5.2 per cent to SEK 1,717 (1,633) million, driven primarily by acquisitions. Exchange rate changes had a negative impact on EBITA of 4.6 per cent. The EBITA margin was 22.8 (22.9) per cent.

During the fourth quarter, 49 (48) per cent of EBITA was generated in EUR, 16 (17) per cent in SEK, 15 (14) per cent in GBP, 9 (9) per cent in NOK, 6 (7) per cent in DKK, 0 (2) per cent in USD and 4 (3) per cent in other currencies.

Net financial items were SEK -97 (-90) million.

Profit before tax grew 4.7 per cent to SEK 1,319 (1,260) million. Net profit for the period grew 7.0 per cent to SEK 1,046 (978) million.

Average capital employed excluding goodwill declined by SEK 2 million to SEK 4,770 million at 31 December 2025, compared with SEK 4,772 million at 30 September 2025. EBITA in relation to average capital employed excluding goodwill increased by 1 percentage point from 30 September 2025 and amounted to 132 per cent.

From 30 September 2025, the Group’s net debt decreased SEK 1,216 million to SEK 12,048 million at the end of the quarter. Interest-bearing net debt fell during the quarter by SEK 1,348 million to SEK 7,801 million.

Cash flow from operating activities increased 22.8 per cent to SEK 1,986 (1,617) million due to higher operating profit and reduced capital tied up. Cash flow from investing activities was SEK -590 (-1,499) million, which was mainly attributable to acquisitions.

FINANCIAL PERFORMANCE – BUSINESS AREAS

Dental

The companies in Lifco’s Dental business area are leading suppliers of consumables, equipment and technical service to dentists across Europe, and the business area also has operations in the US. Lifco sells dental technology to dentists in the Nordic countries and Germany, and develops and sells medical record systems in Denmark, Sweden and Germany. The business area also includes a number of manufacturers which produce, inter alia, fitting products for dentures, disinfectants, saliva ejectors, bite registration and dental impression materials, bonding agents and other consumables that are sold to dentists through distributors around the world.

Net sales in Dental increased 0.4 per cent to SEK 6,331 (6,306) million during the year as a result of acquisitions and organic growth.

EBITA increased 1.8 per cent to SEK 1,331 (1,307) million during the year and the EBITA margin increased to 21.0 (20.7) per cent. EBITA was positively impacted by acquisitions.

During the year, Swiss Arnold Deppeler, British DB Orthodontics, German Fraga Dental, Swedish Gestenco International, Dutch Citodent Imaging and Italian Nobil Bio Ricerche were consolidated.

Demolition & Tools

The Demolition & Tools business area develops, manufactures and sells equipment for the infrastructure, demolition and construction industries. The Group is the world’s leading supplier in the markets for demolition robots and crane attachments. The Group is also one of the leading global suppliers of forest machinery and excavator attachments. The business area’s EBITA margin might fluctuate between quarters due to single, major special orders and changes to the product mix.

Net sales increased by 4.9 per cent during the year to SEK 6,760 (6,444) million as the result of organic growth and acquisitions.

EBITA increased by 9.1 per cent during the year to SEK 1,681 (1,542) million, and the EBITA margin expanded by 1.0 percentage point to 24.9 (23.9) per cent, positively impacted by organic growth and acquisitions.

Systems Solutions

Through its operating units, the Systems Solutions business area operates in industries offering systems solutions. Systems Solutions is divided into five divisions: Contract Manufacturing, Environmental Technology, Infrastructure Products, Special Products and Transportation Products.

Net sales in Systems Solutions increased 13.2 per cent to SEK 15,160 (13,387) million during the year due to acquisitions and organic growth. EBITA increased by 7.8 per cent to SEK 3,483 (3,230) million and the EBITA margin declined by 1.1 percentage points to 23.0 (24.1) per cent due to negative organic growth in parts of Systems Solutions.

Contract Manufacturing reported strong organic sales growth for the year with weaker profitability. The German company HEGUtechnik was consolidated during the year.

Environmental Technology reported a weak increase in sales in 2025 with slightly weaker profitability.

Infrastructure Products reported a strong sales trend and improved profitability during the year, primarily as a result of acquisitions. Sammarinese Italgears, Danish R&T Stainless, Dutch Klemko Group and Italian UR FOG were consolidated during the year.

Special Products saw good sales growth during the year due to acquisitions. The weak market situation during the year led to negative organic growth and reduced profitability. The Dutch company HedoN Electronic Developments and the Austrian company Stöffl were consolidated during the year.

Transportation Products saw good sales growth during the year with stable profitability as a result of acquisitions. The market situation was weak during the year, which resulted in reduced organic sales and EBITA. The UK companies Heavy Duty Parts and MaxiMover and the Italian company Toppy were consolidated during the year.

ACQUISITIONS

Lifco consolidated the following acquisitions during the year:

Further information on the acquisitions is provided on page 17. The figures for net sales and number of employees refer to estimated annual net sales and the number of employees at the acquisition date.

Taken together, the acquisitions had a positive impact on Lifco’s results and financial position in 2025.

OTHER INFORMATION

Employees
The average number of employees calculated as full-time equivalents was 7,619 (7,115) during the year. At the end of the year, the number of employees calculated as full-time equivalents was 7,814 (7,379). Acquisitions added about 460 employees.

Events after the end of the reporting period
Consolidation of the German company Karl Kaps is expected to take place in the first quarter of 2026 in the Dental business area. Karl Kaps is a niche manufacturer of medical and dental microscopes. Karl Kaps reported net sales of approximately EUR 10.1 million in 2024 and has 33 employees. The acquisition, which comprised all of the shares, was announced on 19 December 2025.

Proposed dividend
The Board of Directors and Chief Executive Officer propose that the Annual General Meeting authorise the payment of a dividend of SEK 2.70 (2.40) per share for 2025, representing a total distribution of SEK 1,226.4 million (1,090.1). This is equal to 33.8 (33.0) per cent of the net profit for the year attributable to shareholders of Lifco AB. The proposed record date for the dividend is 30 April 2026. Euroclear Sweden expects to be able to distribute the dividend to the shareholders on 6 May 2026, subject to the resolution of the Annual General Meeting.

Related party transactions
During the period, customary transactions with related parties have occurred. All transactions have been carried out on market terms.

Risks and uncertainties
The risk factors which have the biggest impact for Lifco are global macroeconomic factors, the competitive situation, structural changes in the market and general level of economic activity. Lifco is also exposed to financial risks, including currency risks, interest rate risks, credit and counterparty risks. Lifco is working actively to monitor and continually evaluate sustainability-related risks and their impact on the Group’s operations and earnings. The Group has established a governance structure that involves Group management and the Board and works to continually improve the company’s sustainability-related activities and minimise related risks. As part of this governance, Group management evaluates the compliance of, for example, the Code of Conduct, occupational injuries, IT security and legal disputes, for every subsidiary on a quarterly basis. The risks and sensitivity analysis are described in detail in Lifco's Annual and Sustainability Report for 2024 and are unchanged since this report.

The Parent Company is affected by the above risks and uncertainties in its capacity as owner of the subsidiary companies.

Accounting policies
The Group’s year-end report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. In respect of the Parent Company, the report has been prepared in accordance with the Annual Accounts Act and Recommendation RFR 2 Financial

Reporting for Legal Entities of the Swedish Financial Reporting Board. The accounting policies have been applied in accordance with those which are presented in the 2024 Annual Report and should be read in conjunction with these.

In cases where Lifco does not control 100 per cent of the shares of a subsidiary, but there are combined put/call options, Lifco consolidates 100 per cent of the subsidiary and recognises a financial liability for the put/call option. Changes in liabilities are recognised in equity and no non-controlling interests are recognised. Gains related to minority shares that are subject to put/call options amounted to SEK 319 (249) million for the 2025 financial year.

The total figures in the tables and calculations do not always add up due to rounding differences. The aim is for each row to correspond to its original source and as such, rounding differences can affect the total figures.

This report has not been examined by the company’s auditors.

DECLARATION OF THE BOARD OF DIRECTORS

The Board of Directors and Chief Executive Officer warrant and declare that this year-end report and report for the fourth quarter gives a true and fair view of the Parent Company’s and Group’s operations, financial positions and results, and that it describes significant risks and uncertainties faced by the Parent Company and the companies included in the Group. The contents of the year-end report were resolved on 29 January 2026.

Enköping, 29 January 2026

FINANCIAL CALENDAR
Annual Report 2025 the week starting 30 March 2026.
Report for the first quarter 24 April 2026.
Report for the second quarter 14 July 2026.
Report for the third quarter 23 October 2026.
Year-end report and report for the fourth quarter 29 January 2027.
Annual Report 2026 the week starting 29 March 2027.


ANNUAL GENERAL MEETING 2026
The Annual General Meeting of Lifco AB will be held on Friday 24 April 2026, at 11 a.m. CEST, at Bonnierhuset Konferens, Torsgatan 21, Stockholm. Shareholders wishing to raise an issue for discussion at the AGM may do so by submitting their proposal to the Chairman of Lifco by e-mail: ir@lifco.se or by post to: Lifco AB, Attn:Bolagsstämmoärenden, SE-745 85 Enköping, Sweden. To ensure their inclusion in the notice and thus on the agenda for the AGM, proposals must be received by the Company no later than Friday 6 March 2026.

Tuesday 28 April was announced as the date for the Annual General Meeting in the report for the third quarter of 2025.

FURTHER INFORMATION
Media and investor relations: Åse Lindskog, ir@lifco.se, telephone: +46 730 24 48 72.

ONLINE PRESENTATION
An online presentation with Per Waldemarson, CEO, and Therése Hoffman, CFO, will take place on Friday, 30 January 2026 at 9:00 a.m. CET. The presentation can be listened to online or by calling in to the telephone conference. Questions can be asked at the telephone conference.

Time: Friday, 30 January at 9:00 a.m. CET

Link to the presentation: https://lifco.events.inderes.com/q4-report-2025

If you wish to participate at the telephone conference, you can register using the link below. Following registration, you will receive a telephone number and a conference ID to log in to the conference.

Link to register for the telephone conference: https://conference.inderes.com/teleconference/?id=50051765

CONDENSED CONSOLIDATED INCOME STATEMENT

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SEGMENT OVERVIEW

Lifco is organised into three operating segments: Dental, Demolition & Tools and Systems Solutions. Segment reporting is consistent with the internal reports submitted to the most senior executive, the CEO of Lifco Group. The Dental and Demolition & Tools operations have similar economic characteristics and are similar in terms of the nature of their products and services, production process and customer categories. Systems Solutions comprises a large number of separate companies which differ individually from each other in terms of the nature of their products and production processes, although the nature of their business activities is similar and they have similar economic characteristics. Systems Solutions has a business area head who is directly accountable to the CEO for the operations, financial performance, forecasts and plans.

Group-wide functions mainly consist of costs attributable to the Board, CEO and other senior executives, audit costs and corporate costs for preparing information for shareholders, maintaining the stock exchange listing and costs related to the annual report.

The results of the operating segments are based on EBITA. The Group’s financial income and expenses and tax are managed at Group level and are therefore not allocated to each segment. Assets and liabilities are not broken down by segment, as no such amount is regularly reported to the CEO.

NET SALES TO EXTERNAL CUSTOMERS
No sales are made between the segments.

Net sales by significant type of income:

EBITA
A breakdown of results by segment is made up to and including EBITA. EBITA is reconciled to profit before tax in accordance with the following table:

CONDENSED CONSOLIDATED BALANCE SHEET

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

RESTATED CONSOLIDATED CASH FLOW 2024
At the start of 2024, reporting procedures concerning consolidated cash flow were changed and certain unrealised exchange rate differences were entered on the incorrect row in cash flow in the 2024 Annual Report and in the interim reports. This has been corrected in the table below with these unrealised exchange rate differences now being transferred from the line item “Other non-cash items” to the line item “Translation differences item”. Items with the footnote 1 have been adjusted. Adjustments have been made retroactively for all reporting periods.

¹ Corrected items.

ACQUISITIONS IN 2025
16 new businesses were consolidated in 2025. The operations that were consolidated comprise Italian Nobil Bio Ricerche, Toppy and UR FOG, Dutch Citodent Imaging, Klemko Group and HedoN Electronic Developments, British DB Orthodontics, Heavy Duty Parts and MaxiMover, German Fraga Dental and HEGUtechnik, Swiss Arnold Deppeler, Swedish Gestenco International, Sammarinese Italgears, Danish R&T Stainless and Austrian Stöffl.

The purchase price allocation includes all acquisitions consolidated in 2025. All acquisitions have been fully consolidated.

Acquisition-related expenses of SEK 45 million are included in administrative expenses in the consolidated income statement for 2025. Since the respective consolidation dates, the acquired companies have added SEK 899 million to consolidated net sales and SEK 268 million to EBITA. If the businesses had been consolidated as of 1 January 2025, consolidated net sales for the year would have increased by a further SEK 1,155 million and EBITA would have increased by a further SEK 329 million.

FINANCIAL INSTRUMENTS

¹ Other liabilities classified as financial instruments refer to combined put/call options related to
non-controlling interests.

The carrying amount is the same as the fair value. The fair value of short-term borrowings is equal to the carrying amount, as the discount effect is insignificant.

Financial instruments at fair value are classified into different levels depending on how fair value is determined. All financial instruments at fair value in the Lifco Group have been classified as level 3, i.e. non-observable inputs. The put/call options are valued on the basis of a multiple valuation whereby a relevant multiple according to the terms of the contracts is applied to an estimated future performance measure. The uncertainty in the valuation can be found in the assessment of future profitability until the maturity date. Revaluation takes place on every balance sheet date.

KEY PERFORMANCE INDICATORS

CONDENSED PARENT COMPANY INCOME STATEMENT

¹ Other operating income includes invoicing of Group-wide services.
² Net financial items include SEK 2,068 (1,891) million in dividends received during the twelve-month period.

CONDENSED PARENT COMPANY BALANCE SHEET

DEFINITIONS

RECONCILIATION OF ALTERNATIVE KEY PERFORMANCE INDICATORS
The year-end report presents alternative key performance indicators for assessing the Group’s performance that are considered material for analysis and understanding of the Group’s earnings and financial position. The primary alternative KPIs presented in this year-end report are EBITA, EBITDA, net debt and capital employed. Definitions of the alternative KPIs are presented on pages 2021.

EBITA compared with financial statements in accordance with IFRS

EBITDA compared with financial statements in accordance with IFRS

Net debt compared with financial statements in accordance with IFRS

Capital employed and capital employed excluding goodwill and other intangible assets compared with financial statements in accordance with IFRS

Capital employed and capital employed excluding goodwill and other intangible assets calculated as the average of the last four quarters compared with financial statements in accordance with IFRS