Ependion : Sustainability Report 2024

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Ependion AB Annual & Sustainability Report 2024 Investments in a secure and connected world 2 Contents Operations Our business entities Sustainability Report Financial information Investor and shareholder information Ependion-connecting the Alps Ependion is playing a key role in connecting thousands of transformer stations in the Austrian Alps using 8,000 routers from the Westermo business entity. The customer is Energie AG, using a solution built on a private mobile LTE network that excels in mountainous areas, offering cybersecurity advantages such as protected frequencies. Westermo's solution, on the 450 MHz frequency band, means fewer base stations are needed, which is a significant cost advantage. Installations will take place in 2024 to 2026. Energie AG Oberösterreich supplies more than 450,000 customers with electricity via its 33,000-kilometer high- and low-voltage network generated by 43 hydroelectric power plants, 11 thermal power plants and recycling facilities, 100 solar systems, and 14 wind turbines. EPENDION ANNUAL & SUSTAINABILIT Y REPOR T 2024 ‌CONTENTS 3 Contents Operations Our business entities Contents Sustainability Report Financial information Investor and shareholder information Operations This is Ependion 4 The year in brief 5 Market overview 6 CEO's statement 8 Financial targets 10 Our journey continues 11 Three reasons to invest in Ependion 12 The share 13 Megatrends and drivers 15 Business strategy 17 Acquisition agenda 18 Our business entities Westermo business entity 20 Beijer Electronics business entity 26 Sustainability Report Contents, Sustainability Report 34 Sustainability strategy 35 Statements from our Group Head of Sustainability & CFO 36 Global sustainability issues 37 Double materiality analysis 38 Sustainability framework 40 Sustainability Statement 51 Taxonomy Regulation 77 UN Global Compact 82 Auditor's opinion 83 Financial information Directors' Report 85 Consolidated Income Statement 89 Statement of Comprehensive Income 89 Consolidated Balance Sheet 90 Consolidated Statement of Changes in Equity 91 Consolidated Cash Flow Statement 93 Parent Company Income Statement 94 Parent Company Balance Sheet 95 Parent Company Statement of Changes in Equity 96 Parent Company Cash Flow Statement 97 Notes 98 Corporate Governance Report 2024 132 Board of Directors' certification 136 Board of Directors and auditor 137 Audit Report 139 Senior executives 144 Investor and shareholder information Five-year summary 146 Definitions 148 Annual General Meeting 149 EPENDION ANNUAL & SUSTAINABILIT Y REPOR T 2024 ‌THIS IS EPENDION 4 Contents Operations This is Ependion The year in brief Market overview CEO's statement This is Ependion Financial targets Our journey continues Three reasons to invest in Ependion The share Megatrends and drivers Business strategyi Acquisition agenda Our business entities Sustainability Report Financial information Investor and shareholder information Ependion is an expansive global technology group delivering digital solutions for secure control, visualization and data communication for industrial applications in environments where reliability and high quality are critical. Our name-Ependion-is inspired by the Greek word for investments, and is reminiscent of the group's mission: to invest in people, technologies and products that contribute to a secure and connected world. Our overarching strategy is founded on creating long-term value through a decentralized organization through strong entrepreneurship, collective financing, monitoring and support, and a proactive acquisition agenda. Key indicators Sales EBIT Operations in 950 2.3 251 21 billion SEK million SEK countries coworkers 2024 2023 2022 Sales, MSEK 2,258.1 2,470.6 2,128.4 EBITDA, MSEK 427.5 474.0 354.8 EBITDA margin,% 18.9 19.2 16.7 EBIT, MSEK 250.9 321.7 201.1 EBIT margin,% 11.1 13.0 9.4 Profit after tax, MSEK 157.0 200.4 146.4 Earnings per share, SEK 5.45 6.93 5.07 Dividend per share, SEK a 1.25 1.00 0.50 Equity/assets ratio,% 48.3 45.2 40.9 a The amount for 2024 refers to the Board's proposed dividend. EPENDION ANNUAL & SUSTAINABILIT Y REPOR T 2024 ‌THE YEAR IN BRIEF 5 Contents Operations This is Ependion The year in brief Market overview CEO's statement Financial targets Our journey continues Three reasons to invest in Ependion The share Megatrends and drivers Business strategyi Acquisition agenda Our business entities Sustainability Report Financial information Investor and shareholder information Q1 January: the Westermo business entity opens a sales office in Denmark with its main focus on the expansive energy market. March: the Beijer Electronics business entity adopts a new strategy focused on three customer segments: marine, manufacturing and applications for rugged environments. Its new production unit in Malmö starts serial production of X2 HMIs. Q3 September: both business entities are present at key trade events: Westermo is at InnoTrans, the international trade fair for transport technology, while Beijer Electronics showcases its new X3 and WebIQ at the SMM maritime trade fair. Q4 November: the Beijer Electronics business entity launches X3 web, the first member of its new family of HMIs. A year of investments for the future Order intake 2,039 MSEK (-12%) X3 web is the first product release of next-gen operator panels from Beijer Electronics. The X3 series is one of the group's largest-ever development initiatives. Sales 2,258 MSEK (-9%) Operating cash flow 460 MSEK (+38%) EBIT 251 MSEK (-22%) Product development expenditure 313 MSEK (+11%) Q2 May: the Westermo business entity acquires a minority stake in UK software company Blu Wireless, which has developed new technology for enhanced connectivity on board trains. June: the Westermo business entity secures its first train order on the major Indian market, where the business entity decided to start up a sales function and manufacturing in 2023. EPENDION ANNUAL & SUSTAINABILIT Y REPOR T 2024

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