Reporting period January – June

• Net sales increased 9.0 per cent to SEK 13,875 (12,731) million. Organically, net sales grew by 4.1 per cent.
• EBITA increased 5.9 per cent to SEK 3,057 (2,886) million.
• The EBITA margin was 22.0 (22.7) per cent.
• Profit before tax grew 6.4 per cent to SEK 2,313 (2,175) million.
• Net profit for the period grew 6.7 per cent to SEK 1,723 (1,615) million.
• Earnings per share increased 7.1 per cent till SEK 3.75 (3.50).
• Cash flow from operating activities decreased 3.9 per cent to SEK 1,744 (1,815) million.
• Seven new businesses were consolidated during the period with total annual net sales
  of about SEK 800 million.

Reporting period April – June

• Net sales increased 3.2 per cent to SEK 6,943 (6,725) million. Organically, net sales grew by 0.5 per cent.
• EBITA decreased 2.8 per cent to SEK 1,562 (1,608) million.
• The EBITA margin was 22.5 (23.9) per cent.
• Profit before tax declined 4.3 per cent to SEK 1,181 (1,234) million.
• Net profit for the period decreased 3.8 per cent to SEK 880 (914) million.
• Cash flow from operating activities decreased 8.5 per cent to SEK 971 (1,061) million.

Summary of financial performance

Comments from the CEO
Sales increased 9.0 per cent to SEK 13,875 million (12,731) during the first half of the year, with acquisitions contributing 7.3 per cent and organic growth amounting to 4.1 per cent. Sales increased 3.2 per cent to SEK 6,943 million (6,725) during the second quarter, with acquisitions contributing 7.2 per cent and organic growth amounting to 0.5 per cent. Exchange rate effects had an impact of -2.4 per cent in the first half of the year and -4.4 per cent in the second quarter. The lower organic growth during the second quarter was primarily due to the deteriorating market situation in large parts of Systems Solutions.

During the first half of the year, EBITA increased 5.9 per cent to SEK 3,057 (2,886) million as a result of acquisitions and the EBITA margin amounted to 22.0 (22.7) per cent. During the second quarter, the EBITA margin decreased by 1.4 percentage points to 22.5 (23.9) per cent due to a negative product mix in Demolition & Tools and Systems Solutions as well as negative organic growth in large parts of Systems Solutions. Onward invoicing of surplus materials to customers within the Contract Manufacturing division in Systems Solutions had a negative impact of 0.4 percentage points on the margin during the quarter. Acquisitions contributed positively to profitability.

Earnings per share increased 7.1 per cent to SEK 3.75 (3.50) during the first six months of the year. Cash flow from operating activities decreased 3.9 per cent to SEK 1,744 (1,815) million as a result of higher tied-up capital within the Contract Manufacturing division in Systems Solutions.

During the first half of the year, Lifco consolidated the Swiss company Arnold Deppeler, the German company Fraga Dental and the Swedish company Gestenco International into the Dental business area. The UK company Heavy Duty Parts, the Sammarinese company Italgears, the Dutch company Klemko Group and the Danish company R&T Stainless were consolidated into the Systems Solutions business area. The companies are highly specialised and jointly have sales of about SEK 800 million.

During the first half of the year, Lifco issued two unsecured bonds totalling SEK 1,750 million, and thereby has bonds outstanding totalling SEK 4,500 million. Lifco’s financial position remains strong: interest-bearing net debt amounted to 1.3 times EBITDA at 30 June 2025, which is well in line with our target of interest-bearing net debt of a maximum of three times EBITDA. This means that Lifco possesses the financial scope to make additional acquisitions.

Per Waldemarson
President and CEO

GROUP PERFORMANCE IN JANUARY – JUNE
Net sales increased 9.0 per cent to SEK 13,875 (12,731) million. Acquisitions contributed 7.3 per cent and organic growth amounted to 4.1 per cent. Exchange rate effects had a negative impact on sales of 2.4 per cent. The Swiss company Arnold Deppeler, the German company Fraga Dental, the Swedish company Gestenco International, the UK company Heavy Duty Parts, the Sammarinese company Italgears, the Dutch company Klemko Group and the Danish company R&T Stainless were consolidated during the period.

EBITA increased 5.9 per cent to SEK 3,057 (2,886) million and the EBITA margin declined 0.7 of a percentage point to 22.0 (22.7) per cent. The decline was focused primarily in the second quarter due to a negative product mix in Demolition & Tools and Systems Solutions as well as reduced organic growth in large parts of Systems Solutions. Acquisitions contributed positively to profitability.

Exchange rate effects had a negative impact on EBITA of 2.2 per cent. During the period, 48 (45) per cent of EBITA was generated in EUR, 17 (18) per cent in SEK, 13 (14) per cent in GBP, 10 (12) per cent in NOK, 5 (4) per cent in DKK, 3 (4) per cent in USD and 4 (4) per cent in other currencies.

Net financial items were SEK -207 (-230) million.

Profit before tax grew 6.4 per cent to SEK 2,313 (2,175) million and net profit for the period increased 6.7 per cent to SEK 1,723 (1,615) million.

Average capital employed excluding goodwill increased SEK 139 million during the period, to
SEK 4,771 million at 30 June 2025, compared with SEK 4,632 million at 31 December 2024. EBITA in relation to average capital employed excluding goodwill was 128 per cent, unchanged from year-end.

The Group’s net debt increased SEK 1,241 million from 31 December 2024 to SEK 12,835 million at 30 June 2025, of which liabilities related to put/call options for acquisitions increased SEK 117 million
to SEK 2,753 million from SEK 2,636 million at year-end. Interest-bearing net debt increased during the six-month period by SEK 1,130 million to SEK 8,880 million, compared to SEK 7,750 million at 31 December 2024.

On 17 February 2025, Lifco issued a bond totalling SEK 1,000 million and on 20 May, Lifco issued a further bond of SEK 750 million. Both were issued within the MTN programme and are unsecured. Lifco thereby has bonds outstanding totalling SEK 4,500 million. In addition to bonds outstanding, Lifco has standard short-term credit facilities.

The net debt/equity ratio as of 30 June 2025 amounted to 0.7, compared to 0.6 at year-end. Net debt in relation to EBITDA was 1.9 (1.9) times compared to 1.8 times at the end of the year. Interest-bearing net debt in relation to EBITDA was 1.3 (1.3) times compared to 1.2 times at the end of the year.

Cash flow from operating activities decreased 3.9 per cent to SEK 1,744 (1,815) million during the first half of the year, negatively impacted by higher tied-up capital within the Contract Manufacturing division in Systems Solutions. Cash flow from investing activities was SEK -1,629 (-1,231) million, which was mainly attributable to acquisitions.

GROUP PERFORMANCE IN THE SECOND QUARTER

Sales increased 3.2 per cent to SEK 6,943 (6,725) million in the second quarter. Acquisitions contributed 7.2 per cent and organic growth was 0.5 per cent. Exchange rate effects had a negative impact on sales of 4.4 per cent.

EBITA decreased 2.8 per cent to SEK 1,562 (1,608) million. The EBITA margin decreased by 1.4 percentage points to 22.5 (23.9) per cent due to the impact of Easter on Dental, negative product mix in Demolition & Tools and Systems Solutions as well as reduced organic growth in large parts of Systems Solutions. Onward invoicing of materials to customers within the Contract Manufacturing division in Systems Solutions had a negative impact of 0.4 percentage points on the margin. Acquisitions contributed positively to profitability.

Exchange rate changes had a negative impact on EBITA of 3.8 per cent. During the second quarter,
46 (44) per cent of EBITA was generated in EUR, 18 (18) per cent in SEK, 13 (14) per cent in GBP, 10 (12) per cent in NOK, 6 (4) per cent in DKK, 3 (4) per cent in USD and 4 (4) per cent in other currencies.

Net financial items were SEK -103 (-127) million.

Profit before tax declined 4.3 per cent to SEK 1,181 (1,234) million. Net profit for the period decreased 3.8 per cent to SEK 880 (914) million.

Average capital employed excluding goodwill increased SEK 75 million to SEK 4,771 million at 30 June 2025, compared with SEK 4,696 million at 31 March 2025. EBITA in relation to average capital employed excluding goodwill amounted to 128 per cent at 30 June 2025 and to 131 per cent at 31 March 2025.

The Group’s net debt increased from SEK 1,895 million on 31 March 2025 to SEK 12,835 million, of which liabilities related to put/call options for acquisitions increased SEK 210 million to SEK 2,543 million on 31 March 2025.

At the Annual General Meeting on 25 April 2025, the dividend for the 2024 financial year was set at SEK 2.40 (2.10) per share. The total dividend to shareholders for the 2024 financial year was SEK 1,090.1 (953.9) million, and was paid out on 5 May 2025.

Cash flow from operating activities decreased 8.5 per cent to SEK 971 (1,061) million, negatively impacted by higher tied-up capital within the Contract Manufacturing division in Systems Solutions. Cash flow from investing activities was SEK -1,304 (-1,045) 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 1.1 per cent to SEK 3,244 (3,208) million during the first half of the year as the result of acquisitions and organic growth. Sales during the second quarter were somewhat negatively impacted by the Easter falling in the second quarter of 2025 compared with 2024 when Easter fell in the first quarter.

EBITA decreased 1.1 per cent to SEK 684 (691) million during the six-month period and the EBITA margin decreased by 0.4 of a percentage point to 21.1 (21.5) per cent. EBITA was positively impacted by acquisitions. Profitability during the second quarter was impacted by lower sales volumes due to the Easter holiday.

The Swiss company Arnold Deppeler, which manufactures dental instruments, was consolidated from March 2025. The company had net sales of about CHF 3.3 million in 2024 and has 18 employees. The German company Fraga Dental, which sells consumables to dentists in Germany, was consolidated from April 2025. The company reported net sales of about EUR 2.5 million in 2024 and has seven employees. The Swedish company Gestenco International, which operates within the orthodontic sector globally, was consolidated from April 2025. The company had a turnover of about SEK 19 million in 2024 and has seven employees.

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 5.5 per cent to SEK 3,414 (3,235) million in the first half of the year, driven by acquisitions and organic growth.

During the first half of the year, EBITA increased 13.7 per cent to SEK 861 (757) million and the EBITA margin improved 1.8 percentage points to 25.2 (23.4) per cent. Profitability during the second quarter was impacted by a negative mix effect, whereby lower-margin product areas had stronger sales.

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 14.8 per cent to SEK 7,217 (6,288) million for the first half of the year on the back of acquisitions and organic growth in Contract Manufacturing. Other parts of Systems Solutions reported a negative organic performance in both the first half of the year and the second quarter.

EBITA increased 5.1 per cent in the first half of the year to SEK 1,603 (1,526) million and the EBITA margin declined 2.1 percentage points to 22.2 (24.3) per cent. Acquisitions contributed to the increase in EBITA. Profitability was impacted by weaker markets in large parts of Systems Solutions, which led to lower organic sales. Onward invoicing of surplus material to customers in Contract Manufacturing had a negative impact of 0.9 percentage points on the business area’s margin during the second quarter.

Sales for Contract Manufacturing increased over the six-month period, with lower profitability as a result of a negative product mix. The growth rate for the second quarter declined compared to previous periods.

Environmental Technology reported decreased sales with lower profitability in the first six months of the year as a result of lower organic sales. The weaker market conditions intensified during the second quarter.

Net sales and profitability in Infrastructure Products increased during the six-month period, primarily due to acquisitions.

Special Products reported a healthy performance in sales in the first six months of the year as a result of acquisitions. Profitability declined during the six-month period due to lower organic sales.

Transportation Products reported a healthy sales trend in the six-month period as the result of acquisitions. Profitability declined due to lower organic sales, especially in the second quarter.

In the Transportation Products division, the UK company Heavy Duty Parts was consolidated from March 2025, which is a specialist supplier of parts for coaches. The company had net sales of about GBP 11.7 million in 2024 and has 25 employees. Italgears in San Marino, which is a niche manufacturer of drive systems for lifts, was consolidated into the Infrastructure Products division as of April 2025. The company had net sales of about EUR 13.8 million in 2024 and has 17 employees. The Danish company R&T Stainless, which supplies equipment and components to builders of public playgrounds, was consolidated into the Infrastructure Products division as of April 2025. The company had net sales of about DKK 114 million in 2024 and has 12 employees. The Dutch company Klemko Group develops and sells electrical and mechanical installation materials and lighting products under own brands to installers and OEMs, predominantly via wholesalers, and was consolidated into the Infrastructure Products division as of June 2025. The company had net sales of about EUR 19.1 million in 2024 and has 41 employees.

ACQUISITIONS

Lifco consolidated the following acquisitions during the first six months of the year:

Further information on the acquisitions is provided on page 18. 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 will have 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 7,483 (6,851) for the first half of the year. At the end of the period, the number of employees calculated as full-time equivalents was 7,521 (7,079). Through acquisitions, some 130 employees were added during the first six months of the year.

Events after the end of the reporting period
Consolidation of the Dutch company HedoN Electronic Developments is expected to take place in the third quarter of 2025 in the Systems Solutions business area of the Special Products division. HedoN Electronic Developments is specialised in the design and supply of high precision electronic products, especially for industrial inductive heating applications. In 2024, HedoN reported net sales of approximately EUR 7.4 million. The company has 18 employees. The acquisition, which comprises the majority of the shares, was announced on 3 July 2025.

Consolidation of the Italian company Toppy is expected to take place in the third quarter of 2025 in the Systems Solutions business area of the Transportation Products division. Toppy develops and sells pallet changing systems for the pharmaceutical, food, and beverage industries. In 2024, Toppy reported net sales of approximately EUR 17 million. The company has 50 employees. The acquisition, which comprised the majority of the shares, was announced on 4 July 2025.

Related party transactions
No significant transactions with related parties took place during the period.

2025 Annual General Meeting
The 2025 Annual General Meeting was held on 25 April in Stockholm. The main resolutions of the Meeting were as follows: • The dividend for the 2024 financial year was set at SEK 2.40 per share. The record date for the right to a dividend was set at 29 April 2025, with the payment date at 5 May 2025. • Carl Bennet, Ulrika Dellby, Dan Frohm, Erik Gabrielson, Ulf Grunander, Anna Hallberg, Caroline af Ugglas, Axel Wachtmeister and Per Waldemarson were re-elected members of the Board. Carl Bennet was re-elected Chairman of the Board. • The AGM elected the accounting firm Ernst & Young AB as auditor for the period until the end of the 2026 AGM. The auditor-in-charge is Johan Holmberg. • Fees for the Board and auditors were adopted. • The Board of Directors’ remuneration report was approved.

Board members and senior executives have acquired synthetic call options in Lifco
On 26 May 2025, Lifco was informed by the company’s main owner, Carl Bennet AB, that Directors and senior executives of Lifco have acquired synthetic call options on shares in Lifco issued by Carl Bennet AB.

Carl Bennet AB made an offer to the Directors appointed by the AGM, with the exception of Carl Bennet and Axel Wachtmeister, and all senior executives in Lifco, a total of 23 individuals, to acquire synthetic call options on shares in Lifco issued by Carl Bennet AB. A total of 428,115 options were acquired at a price equal to the options’ market value on the transaction date, based on an external valuation statement. The total market value of the options on the transaction date was estimated at approximately SEK 22 million.

The synthetic call options refer to Lifco’s series Class B shares and have a term of five years. The options can be exercised during the period 1 March 2030 to 31 May 2030. The exercise price is SEK 504.12 per option, which is equal to 128 per cent of the volume-weighted average price paid for Lifco’s Class B shares on Nasdaq Stockholm on each trading day during the period 19–23 May 2025. Upon exercise of the option, the holder receives a cash payment from the option issuer equal to the market price of the shares at the time of exercise less the exercise price. The terms of the options contain a cap, which limits the payout for each option to SEK 677.40. The options are not subject to any transfer restrictions.

Lifco has not been involved in the offer, which was provided by Carl Bennet AB to Board members and senior executives on its own initiative. The offer does not incur any costs for Lifco.

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 Parent Company is affected by the above risks and uncertainties in its capacity as owner of the subsidiary companies. For further information on Lifco’s risks and risk management, see the 2024 Annual Report.

Accounting policies
The Group’s interim 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. 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 six-month report 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 content of the interim report was confirmed on 14 July 2025.

Enköping, 14 July 2025

FINANCIAL CALENDAR
Report for the third quarter 24 October 2025.
Year-end report and report for the fourth quarter 30 January 2026.
Annual Report and Sustainability Report 2025 the week starting 17 March 2026.

ONLINE PRESENTATION
An online presentation with Per Waldemarson, CEO, and Therése Hoffman, CFO, will take place on Monday, 14 July at 9:00 a.m. CEST. The presentation can be listened to online or by calling in to the telephone conference. Questions can be asked at the telephone conference.

Time: Monday, 14 July at 9:00 a.m. CEST

Link to the presentation: https://lifco.events.inderes.com/q2-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=50051763

CONDENSED CONSOLIDATED INCOME STATEMENT

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SEGMENT OVERVIEW

Lifco’s operations are monitored and evaluated by the CEO and resources are allocated based on information from the three operating segments Dental, Demolition & Tools and Systems Solutions. The defined quantitative limits have been exceeded only by Dental and Demolition & Tools. One further operating segment, Systems Solutions, is presented. This operating segment consists of a merger of those divisions which have similar economic characteristics and which do not individually meet the defined quantitative limits. These divisions are Infrastructure Products, Contract Manufacturing, Environmental Technology, Transportation Products and Special Products.

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
Seven new businesses were consolidated in the first six months of the year. The companies consolidated were the Swiss company Arnold Deppeler, the German company Fraga Dental, the Swedish company Gestenco International, the UK company Heavy Duty Parts, the Sammarinese company Italgears, the Dutch company Klemko Group and the Danish company R&T Stainless.

The purchase price allocation includes all acquisitions consolidated during the first six months of the year.

Acquisition-related expenses of SEK 14 million are included in administrative expenses in the consolidated income statement for the first half of the year. Since the respective consolidation dates, the acquired companies have added SEK 152 million to consolidated net sales and SEK 51 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 241 million and EBITA would have increased by a further SEK 75 million.

FINANCIAL INSTRUMENTS

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

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

KEY PERFORMANCE INDICATORS

CONDENSED PARENT COMPANY INCOME STATEMENT

[1] Other operating items include, among other things, invoicing of Group-wide services.
[2] Net financial items include SEK 2,014 (1,891) million in dividends received during the six-month period.

CONDENSED PARENT COMPANY BALANCE SHEET

DEFINITIONS AND OBJECTIVES

RECONCILIATION OF ALTERNATIVE KEY PERFORMANCE INDICATORS
The interim report presents alternative key performance indicators for assessing the Group’s performance. The primary alternative KPIs presented in this interim report are EBITA, EBITDA, net debt and capital employed. Definitions of the alternative KPIs are presented on pages 2122.

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