Interim report January – September 2025

NET ASSET VALUE AND THE LATOUR SHARE

INDUSTRIAL OPERATIONS

The third quarter

INDUSTRIAL OPERATIONS

January - September

THE GROUP

INVESTMENT PORTFOLIO

EVENTS AFTER THE REPORTING PERIOD

¹ The calculation of the net asset value on 3 November was based on the value of the investment portfolio at 17.30 on 3 November and the same values as on 30 September were used for the unlisted portfolio.

Comments from the CEO
“The industrial operations developed positively during the quarter, despite persistently challenging market conditions. During the quarter, order intake increased organically by 10 per cent, which is good given the underlying demand, although there are variations across regions and sectors. Ongoing geopolitical uncertainty is partly influencing customer investment decisions, resulting in longer decision-making processes, and a demand outlook that remains somewhat difficult to predict. However, all the business areas reported an order intake during the quarter which exceeded the previous year’s level when adjusted for acquisitions and exchange rate effects. Caljan performed particularly well, with strong order intake indicating renewed investment appetite among major logistics customers. The construction industry where we have quite significant exposure remains weak, but trends such as energy efficiency, accessibility requirements and automation are driving growth, and our companies are well positioned for the opportunities ahead. We are closely monitoring market conditions and remain confident that our businesses are well prepared to respond to potential changes in demand.

We continue to see no material financial impact from the US trade tariffs. The industrial operations’ total US sales are 11 per cent, with exports to the USA accounting for approximately 9 per cent of that. Caljan, Hultafors Group, REAC within Latour Industries and Nord-Lock Group have slightly more trade exposure to the USA. The strategy is to pass any costs incurred as a result of tariffs on to customers as much as possible.

Over the quarter, order intake increased by 17 per cent and net sales 8 per cent. Adjusted for acquisitions and exchange rate effects, order intake increased by 10 per cent and net sales 2 per cent. The order backlog amounts to SEK 6,760 m at the end of the quarter which ensures a good net sales development in coming quarters. Adjusted operating profit reached SEK 936 m (935 m) with an operating margin of 13.9 (15.0) per cent. Although cost control remains solid, ongoing investments in growth initiatives, combined with adverse exchange rate effects, are temporarily weighing on the operating margin. Cash flow largely follows the normal seasonal pattern and amounts to SEK 885 m (902 m) for operating activities.

Over the 9-month period, order intake grew by 15 per cent and net sales by 10 per cent. Adjusted operating profit reached SEK 2,824 m (2,750 m) with an operating margin of 13.6 (14.6) per cent. We feel satisfied with this outcome, especially given the current global landscape.

Latour’s long-term investment horizon and financial strength enable us to make forward-looking investments in our operations regardless of global economic challenges. By making sound and sustainable investments in our factories, product development and digitalization we are underpinning future growth and consolidating our market positions. No new acquisitions were announced during the quarter other than the completion of the acquisition of Energy Bolting in the UK to Nord-Lock Group in early July. However, the level of acquisition activity is once again high and the pipeline is well filled. To date this year, we have completed seven acquisitions and signed an agreement of one divestment. More information about our acquisitions can be found on page 4.

During the 9-month period, the net asset value of Latour has decreased by 0.6 per cent and the value of our portfolio of listed holdings has decreased by 2.0 per cent. By comparison, the benchmark index SIXRX increased by 5.8 per cent. The majority of our listed holdings have submitted their Q3 reports and, overall, these are good reports given the global situation. Geopolitical uncertainty is a recurring theme, but the financial effects vary depending on industry exposure and geographic presence, among other things. Acquisition activities in the listed companies continue and a number of additional acquisitions have been completed. For example, TOMRA has acquired C&C, a leading provider of solutions for collection and processing of beverage containers in the US, and Fagerhult has acquired Capelon, a Swedish technology company and the market leader in smart outdoor lighting in Sweden.

The market value of the portfolio of listed holdings has increased again since the end of the third quarter, driven in part by a strong performance in ASSA ABLOY, HMS Networks and Sweco. This is also reflected in Latour’s net asset value, which after the stock exchange closed yesterday amounted to SEK 216 per share, corresponding to an increase of 2.7 per cent since the beginning of the year.”

Johan Hjertonsson
President and CEO

For further information please contact:
Johan Hjertonsson, President and CEO, Tel. +46 702-29 77 93 or
Mikael Johnsson Albrektsson, CFO, Tel. +46 733 23 36 06

Conference call
President and CEO Johan Hjertonsson and CFO Mikael Johnsson Albrektsson present the report and answers to questions in a webcasted teleconference today at 10.00 AM (CET). The conference call will be held in English.

Webcast
Via the webcast you are able to ask written questions.
If you wish to participate via webcast, please use the link:
https://events.inderes.com/latour/q3-report-2025

Teleconference
You can ask questions verbally via the teleconference.
If you wish to participate via teleconference, please register on the link below.
After registration you will be provided phone numbers and a conference ID to access the conference.
https://events.inderes.com/latour/q3-report-2025/dial-in

The information contained in this report constitutes information which Investment AB Latour (publ) is required to disclose under the EU Market Abuse Regulation. The information was provided by the above contact persons for publication on 4 November 2025 at 08.30 CET.

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