In November 2023, Ferronordic acquired Rudd Equipment Company in the US. The acquisition significantly shifted the profile of Ferronordic's business and balance sheet. In 6M 2024, the US business contributed 62% of the Group's revenue, while Germany and Kazakhstan made up 34% and 4% respectively. On 30 June, the US business made up 60% of the Group's assets, while Germany and Kazakhstan made up 32% and 5% respectively. Ferronordic sees opportunities for profitable growth in its core markets.

• Double the 2024[2] revenue in its current markets by 2029
• Operating margin above 6%
• Net debt/EBITDA below 3 times (over a business cycle)

• Leadership in the market for construction equipment and trucks
• Geographic expansion
• Expansion into related business areas
• Development of sustainable transport services
• Industry leading digital service and sales platforms
• Aftermarket absorption[3] rate of at least 1.0 x

The Board has also reviewed Ferronordic's dividend policy. According to the new policy, the ambition for the Company should be to pay at least 50% of net income if net debt/EBITDA is less than 1.0, post dividend payment, and to pay at least 25% if net debt/EBITDA is more than 1.0. The Board will take several factors into account when proposing the level of dividend including legal requirements, the articles of association, the group's expansion opportunities, its financial position and other investment needs.

1. Ferronordic's 6M 2024 revenue x 2 is used as a base for growth
2. Current markets are defined as Ferronordic's current (Q2 2024) sales area in the US, Germany and Kazakhstan. They include expansion to other brands and products and expansion of our network in and directly adjacent to our current area
3. Percentage of fixed costs covered by gross profit from the aftermarket business

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This information is information that Ferronordic AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act (2007:528). The information was submitted for publication on 1 October 2024, 19:15 CET.