===== SIDA 1 ===== Interim Report Q1 JANUARY – MARCH 2026 Cash flow stable – profitability still challenging First quarter: January - March • Net sales amounted to SEK 299 million (316) • Order intake amounted to SEK 270 million (275) • Order backlog amounted to SEK 1,493 million (1,238) • Adjusted operating profit (EBITA) amounted to SEK 0 million (-3) • Adjusted operating margin amounted to 0.1 percent (-0.9) • Profit after tax amounted to SEK 0 million (-30) • Adjusted profit after tax amounted to SEK 1 million (-5) • Earnings per share amounted to SEK -0.03 (-1.31) • Adjusted earnings per share amounted to SEK 0.01 (-0.24) • Operating cash flow amounted to SEK 32 million (1) Events during the quarter and after the end of the quarter • Viktor Arvidsson, new CFO Balco Group, has taken up his position during the quarter • Jani Backlund, new CEO of Riikku Rakenteet Oy, has taken up his position during the quarter jan-mar jan-mar apr-mar jan-dec MSEK 2026 2025 2025/26 2025 Net Sales 298,8 315,9 1 278,0 1 295,1 Order intake 270,2 275,0 1 532,3 1 537,1 Order backlog 1 492,9 1 238,0 1 492,9 1 523,3 Adjusted operating profit (EBITA) 0,4 -2,7 18,5 15,4 Adjusted operating margin (EBITA), % 0,1 -0,9 1,4 1,2 Net result for the period -0,2 -29,6 -5,5 -35,0 Adjusted net result after tax 0,8 -5,1 -5,0 -10,8 Operating cash flow 31,8 1,2 130,2 99,7 Earnings per share, SEK before dilution -0,03 -1,31 -0,28 -1,55 Earnings per share, SEK after dilution -0,03 -1,31 -0,28 -1,55 Adjusted earnings per share, SEK, before and after dilution 0,01 -0,24 -0,25 -0,50 "Order intake in line with the comparative quarter, while the order backlog increased by just over 20 percent compared to the same period last year. " "We are seeing increased activity in the renovation segment, but the turmoil in the outside world may affect developments going forward." - Camilla Ekdahl, President and CEO ===== SIDA 2 ===== 2 | Balco Group Interim Report 1 January - 31 March 2026 CEO's statement Order intake and earnings Order intake in the first quarter was on a par with the corresponding period last year. In the renovation segment, a slight increase was noted, while the new build segment developed weaker. The order backlog at the end of the quarter was just over 20 percent higher than at the same time last year, with growth in both renovation and new build. Order intake in Balco Group should be assessed over a longer period of time, as it may vary from quarter to quarter depending on the timing of larger projects. During the first quarter, no major individual projects were booked. Cash flow continued to develop positively during the quarter. Net sales decreased by five percent during the quarter, of which the currency effect had a negative impact of two percent. Sales increased in Sweden and Norway, while it decreased in Denmark and Finland as a result of lower order intake last year. Outside the Nordic region, sales increased. The forecast at the end of last year indicated that the first quarter would be characterised by lower sales and earnings. The subsequent increased uncertainty in the world has delayed improved developments. Profitability improved compared with the corresponding period last year, but remains well below our targets. The new build segment had a negative impact on profitability during the quarter. At the same time, parts of the renovation segment developed weakly in a number of companies as a result of lower volumes and lowered forecasts for coverage ratio in individual projects. We have implemented extensive measures, but the continued weak profitability and increased uncertainty in the world mean that work on further cost savings and other structural measures continues. Market The level of activity in the renovation segment in Sweden and Norway continues to improve, but is still below the levels before the outbreak of the Ukraine war. There is a significant underlying need for renovation, and we see that projects that have been postponed for several years are becoming increasingly urgent to implement. The need has not disappeared, but only been postponed. At the same time, customer dialogues and investment decisions are affected by the increased uncertainty in the world. All in all, this means a somewhat fragmented market picture and some uncertainty about future developments. In Denmark, we do not yet see a clear market turnaround, although order intake in the first quarter increased compared with the previous year. There is activity in the market, but decision-making processes and the time to possible project start-ups are still protracted. The Finnish new build market remains strained and shows no clear signs of recovery. There are still a large number of unoccupied apartments in the Helsinki area, which has a negative impact on new construction. The forecast for the renovation segment in Finland has been that p roject activity would increase slightly in 2026, which was partly confirmed in the first quarter. For other markets outside the Nordic region, the market situation is considered to be in line with previous assessments. In the UK market and in Germany, we continue to see significant potential in the new build segment, at the same time the competition is high, especially in larger projects. In the renovation segment in Germany, we continue to see good potential in the customer segments where we have a strategic focus. Our Finnish glazing from Riikku helps to broaden our offering and strengthens our position by complementing our premium products from Balco. Outlook Our assessment is that the trend of an increased level of activity in the renovation market will continue. At the same time, the geopolitical turmoil and its impact on material prices have contributed to a more subdued view of market developments going forward, partly as a result of increased inflation risk and thus the risk of higher interest rates. The profitability of Balco Group is not yet satisfactory, but the remedial work in the companies that do not achieve our goals continues with further cost adjustments and strengthened project management. The Board of Directors and management continuously evaluate the company's financial situation in relation to future earnings capacity and cash flow. The outcome for the first quarter is within the covenant levels defined in the waiver received until mid-year. Camilla Ekdahl President and CEO ===== SIDA 3 ===== 3 | Balco Group Interim Report 1 January - 31 March 2026 Group development First quarter: January – March Net sales amounted to SEK 299 million (316). Organic growth was -3 percent and currency effects were -2 percent. Net sales increased in Sweden and Norway but decreased in Finland and Denmark. Net sales for the renovation segment decreased to SEK 229 million (236) and net sales for the new build segment decreased to SEK 70 million (79). Order intake amounted to SEK 270 million (275). Order intake for the renovation segment amounted to SEK 211 million (208) and order intake for the new build segment amounted to SEK 60 million (67). The order backlog amounted to SEK 1,493 million (1,238). The order backlog for the renovation segment amounted to SEK 1,048 million (991) and the order backlog for the new build segment amounted to SEK 445 million (247). Adjusted operating profit (EBITA) amounted to SEK 0 million (-3), corresponding to an adjusted operating margin of 0.1 percent (-0.9). Items affecting comparability of SEK -1 million (-31) were taken in the quarter linked to decided and implemented structural measures in the form of restructuring of the organization. Net financial items amounted to SEK 2 million ( -4), of which SEK -0.4 million ( -0.4) relates to interest expenses related to rights of use (leasing) and SEK 8 million (1) is attributable to unrealized currency fluctuations. Interest expenses amounted to SE K - 7 million (-5) Profit after tax amounted to SEK 0 million (-30). Adjusted profit after tax amounted to SEK 1 million (-5). Earnings per share amounted to SEK -0.03 (-1.31). Adjusted earnings per share amounted to SEK 0.01 (-0.24). Operating cash flow amounted to SEK 32 million (1). The phases of the projects and building permit processes affect the cash flow between the quarters. Cash flow from operating activities before changes in working capital amounted to SEK -2 million (-25) and cash flow from operating activities after changes in working capital amounted to SEK 20 million (-45). Cash flow from investing activities amounted to SEK -11 million (-16), of which SEK -1 million (-2) was replacement investments, SEK 0 million (-4) expansion investments and SEK -11 million (-12) reduction of long-term liabilities. Cash flow from financing activities amounted to SEK -6 million (-19), with the largest item pertaining to changes in leasing. Cash flow for the quarter amounted to SEK 3 million (-81). Depreciation amounted to SEK -12 million (-12), of which SEK -5 million (-5) relates to depreciation related to rights of use (leasing) and SEK -1 million (-1) relates to depreciation and amortization of acquired intangible assets. Net sales by geographic market, MSEK jan-mar jan-mar apr-mar jan-dec 2026 2025 2025/26 2025 Sweden 138,0 135,7 589,1 586,8 Other Nordics 114,4 142,5 488,1 516,3 Other Europe 46,4 37,6 200,8 192,0 Total net sales 298,8 315,9 1 278,0 1 295,1 Order intake by segment, MSEK Order backlog, MSEK Net sales, MSEK Adjusted operating profit, MSEK Operating cash flow R12, MSEK ===== SIDA 4 ===== 4 | Balco Group Interim Report 1 January - 31 March 2026 Financial position Interest-bearing net debt including lease liabilities amounted to SEK 340 million (355). Interest-bearing net debt including lease liabilities in relation to adjusted EBITDA amounted to 5.5 times (3.9). In December 2025, a waiver was obtained and an amendment to the current credit agreement, whereby the covenant levels were adjusted until June 2026. The Group's equity amounted to SEK 738 million (757). The Group's equity/assets ratio was 44 percent (47). Personnel The number of full-time employees in Balco Group amounted to 526 (562) as of the end of March 2026. The decrease is due to restructuring measures implemented during the past year. Parent company The Parent Company is headquartered in Växjö and conducts operations directly and through Swedish and foreign subsidiaries. The activities of the Parent Company are mainly focused on strategic development, financial management, corporate governance issues, board work and banking relations. Shares, share capital and shareholders As of the end of March 2026, the number of shares in Balco Group AB amounted to 23,021,648 shares, corresponding to a share c apital of SEK 138,135,310. The company has one (1) series of shares. Each share entitles the owner to one vote at the general meeti ng. The number of shareholders was 4,422. The four largest shareholders were Herenco AB, Ringvägen Venture AB, AB Tuna Holding and Swedbank Robur funds. Net sales by customer category, MSEK 31-Mar 31-Mar 31-Dec MSEK 2026 2025 2025 Non-current liabilites to credit institutions 475,1 349,6 475,0 Leasing libabilites non-current 43,2 50,3 43,8 Current liabilities to credit institutions 0,2 0,0 0,2 Leasing libabilities current 19,8 20,0 21,1 Cash and cash equivalents -198,4 -64,7 -190,0 Interest-bearing net debt incl leasing debt 339,9 355,3 350,2 Interest-bearing net debt incl leasing/EBITDA (12 months), times 5,5 x 3,9 x 6,0 x Equity/assets ratio % 43,5 47,2 42,5 jan-mar jan-mar apr-mar jan-dec 2026 2025 2025/26 2025 Tenant-owner associations 153,0 200,0 737,9 784,8 Private landlords 22,4 8,5 56,5 42,7 Publicly owned companies 17,1 6,2 41,5 30,6 Construction companies 106,3 101,2 442,1 437,0 Total net sales 298,8 315,9 1 278,0 1 295,1 External interest-bearing net debt in relation to EBITDA ===== SIDA 5 ===== 5 | Balco Group Interim Report 1 January - 31 March 2026 Development by segment Renovation First quarter Net sales decreased by 3 percent to SEK 229 million (236). The segment accounted for 77 percent (75) of total sales. Order intake amounted to SEK 211 million (208), corresponding to 78 percent (76) of total order intake. Adjusted operating profit (EBITA) amounted to SEK 3 million ( -5), corresponding to an adjusted operating margin of 1.2 percent (-1.9). The order backlog amounted to 1,048 (991), corresponding to 70 percent (80) of the total order backlog. New build First quarter Net sales amounted to SEK 70 million (79). The segment accounted for 23 percent (25) of total sales. Order intake amounted to SEK 60 million (67), corresponding to 22 percent (24) of total order intake. Adjusted operating profit (EBITA) amounted to SEK -2 million (2), corresponding to an adjusted operating margin of -3.0 percent (2.8). The order backlog amounted to SEK 445 million (247), corresponding to 30 percent (20) of the total order backlog. jan-mar jan-mar apr-mar jan-dec Renovation, MSEK 2026 2025 2025/26 2025 Net Sales 228,9 236,4 978,1 985,6 Adjusted operating profit (EBITA) 2,7 -4,6 18,5 11,2 Adjusted operating margin (EBITA), % 1,2 -1,9 1,9 1,1 Order intake 210,6 208,0 1 013,4 1 010,7 Order backlog 1 048,3 991,1 1 048,3 1 059,5 jan-mar jan-mar apr-mar jan-dec New Build, MSEK 2026 2025 2025/26 2025 Net Sales 69,9 79,4 299,9 309,4 Adjusted operating profit (EBITA) -2,1 2,2 0,7 5,0 Adjusted operating margin (EBITA), % -3,0 2,8 0,2 1,6 Order intake 59,5 67,0 519,0 526,5 Order backlog 444,6 246,9 444,6 463,8 ===== SIDA 6 ===== 6 | Balco Group Interim Report 1 January - 31 March 2026 Operations and segment description Balco Group is a market leader in the balcony industry and offers a range of services, from development and manufacturing to sale and installation of in-house manufactured open and glazed balcony systems. Balco has a unique method, known as the Balco method, for delivering glazed balconies and balcony solutions. The method involves removing existing balconies and replacing them with new, larger glazed balconies with a lifesp an of over 90 years, which provides the market's most economical and sustainable solution. To offer complete and customized solutions in the balcony industry, Balco Group has several subsidiaries that work together to offer a complete solution in areas such as the manufacture and delivery of balconies, masonry and tile services, technical solutions and façade services such as renovation, window replacement and façade cleaning. Balco Group strives to meet the customer's needs and requirements by offering a combination of specialized services and expertise. Balco Group's offering contributes to increased quality of life, security and value increase for residents in apartment buildings and provides energy savings of up to 30 percent. The Group takes full responsibility for the project and guides the customer through the entire process from project planning to final inspection and service. Segment - Renovation Segment - New Build Brf Ludvigsberg in Sundsvall, Sweden Joseph Lancaster Nursery in London, UK The segment includes the replacement and expansion of existing balconies, mainly glazed balconies. The main driver is the pent -up need for renovation and the age profile of the properties. The offer also includes façade renovation. The segment includes balconies in the construction of multi - dwelling properties and balcony projects in the maritime market. Demand is driven by the pace of new housing production. The offering also includes façade work in new construction. Sales development by quarter, MSEK Operating margin per quarter, % Sustainability Sustainability is a prerequisite for long-term profitability for Balco Group. By focusing on sustainability, we can create a strong brand, increase customer trust and improve our competitiveness in the long term. The risk rating according to Sustainalytics was raised/deteriorated marginally to 17.5 (17.2), which means that we are among the 5 percent with the lowest risk rating in our industry "Building Products". ===== SIDA 7 ===== 7 | Balco Group Interim Report 1 January - 31 March 2026 Other information Seasonality Balco Group's sales and earnings are partly affected by the timing of orders, seasonal variations and the fact that the gener al meeting season in tenant -owner associations normally falls in the second and fourth quarters. Furthermore, the Group is positive ly affected by months with many working days and lack of time off, as well as negatively affected by weather factors where winters with significant snowfall mean increased costs. Related party transactions The related parties consist of the Board of Directors, Group Management and the CEO, partly through ownership in Balco and pa rtly through the role of senior executive. The related parties also include the company's largest shareholder, the Hamrin family, which is represented on the Board of Directors by Carl-Mikael Lindholm, and during part of the quarter also Skandrenting, which was represented on the Board of Directors by Johannes Nyberg. Transactions with related parties are carrried out on a market basis. For further information, see the Annual Report 2025 on pages 79 and 99. Incentive program Balco Group has a long -term incentive program aimed at the company's senior executives and additional key employees, a total of approximately 30 employees. The incentive program comprises a maximum of 230,000 warrants in total, which entitles the holder to subscribe for a maximum of the corresponding number of shares. Balco Group's total cost for the incentive program during the term of the program is expected to amount to approximately SEK 1 million. The program entails a dilution corresponding to approxim ately 1 percent of the company's total number of shares. The senior executives of Balco have acquired 60,000 warrants amounting to a total value of SEK 248,400. The purpose of the incentive programs is to encourage broad share ownership among Balco Group's employees, facilitate recruitment, retain competent employees and increase motivation to achieve or exceed the company's financial targets. For more information, see the Annual Report 2025 on pages 45, 78 and 113. Risks and uncertainties The Group and the Parent Company are exposed to various types of risks through their operations. The risks can be divided into industry- and market-related risks, business-related risks, financial risks, regulatory risks and sustainability risks. Industry - and market-related risks include, among other things, changes in demand as a result of a weaker economy or other macroeconomic changes, changed prices for raw materials that are central to Balco Group's production, and changes in competition or price pressure. Business-related risks include Balco Group's ability to develop and sell new innovative products and solutions, that the Group is able to attract and retain qualified employees, and that Balco Group's profitability is dependent on the results of the individual projects, i .e. the Group's ability to predict, calculate and deliver the projects within set financial frameworks. The financial risks are summarized under currency risk, f inancing and liquidity risk, credit risk and interest rate risk. Regulatory risks include, among other things, the impact of political decisions on the business, changes in accounting standards, as well as disputes and legal uncertanties. Sustainability-related risks include, for example, changes in the surrounding world and the company's climate impact. Balco Group's risks and uncertainties are described on pages 31–36, 42, 51, 59, 87–88, 91 and 94 of the Annual Report for 2025. Outlook Balco Group is one of the few complete balcony suppliers on the market that provides customized and innovative balcony solutions on a turnkey contract. Balco Group is the market leader in the Nordic region and has a challenger position in the other markets where the Group operates. The market is fragmented and growing throughout Northern Europe. The value of the balcony market in the count ries where Balco Group is represented is estimated at just over SEK 40 billion. Our assessment is that the trend of an incipient recovery in the renovation market will continue, however, the geopolitical turmoil and its impact on material prices may have an inhibiting effect. The recovery in the new build segment is expected to take longer. The profitability of Balco Group is still not satisfactory, which is why new cost-cutting programs are being implemented. The Board of Directors and management continuously evaluate the company's financial situation against future earnings capacity and cash flow. A waiver has been obtained until mid-year with temporarily higher covenants. Events during the quarter and after the end of the quarter Viktor Arvidsson, new CFO of Balco Group, and Jani Backlund, new CEO of Riikku Rakenteet Oy, have taken up their positions during the quarter. ===== SIDA 8 ===== 8 | Balco Group Interim Report 1 January - 31 March 2026 Financial targets Revenue growth Balco Group´s net sales shall grow by 10 percent annually during a business cycle Profitability Earnings per share shall grow by 20 percent annually over a business cycle Capital structure Interest-bearing net debt shall not exceed 2.5 times operating profit before depreciation and amortisation (EBITDA), other than temporarily Dividend policy Balco Group shall distribute 30 –50 percent of profit after tax, taking into consideration the needs of Balco Group's long -term growth and prevailing market conditions The interim report has not been subject to a review according to ISRE 2410 by the company's auditors. This information is information that Balco Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 13:00 CET on April 27, 2026. Växjö, 27 April 2026 Camilla Ekdahl President and CEO Web conference A webcasted conference will be held on April 27, 2026 at 14:00 CET where President and CEO Camilla Ekdahl and CFO Viktor Arvidsson will present the report and answer questions. To follow the webcast and submit written questions, please use this link: https://www.finwire.tv/webcast/balcogroup/q1-2026/ To participate via telephone conference and to be able to ask oral questions, please dial: Phone: +46 8 5050 0829 PIN: 847 3084 7445 # For further information, please contact: Camilla Ekdahl, President and CEO, Tel: +46 70 606 30 32, camilla.ekdahl@balco.se Viktor Arvidsson, CFO and Head of IR, Tel: +46 70 864 92 23, viktor.arvidsson@balco.se Calendar 2026/2027 Annual General Meeting 2026 ......... May 5, 2026 Interim Report Jan-Jun 2026 ............ July 14, 2026 Interim Report Jan-Sep 2026 ........... October 26, 2026 Year-end report 2026......................... February 8, 2027 ===== SIDA 9 ===== 9 | Balco Group Interim Report 1 January - 31 March 2026 Consolidated statement of comprehensive income jan-mar jan-mar apr-mar jan-dec MSEK 2026 2025 2025/26 2025 Net sales 298,8 315,9 1 278,0 1 295,1 Production and project costs -251,0 -310,5 -1 076,1 -1 135,6 Gross profit 47,8 5,3 202,0 159,4 Sales costs -27,4 -27,7 -105,7 -105,9 Administration costs -22,2 -22,6 -84,4 -84,8 Other operating income 0,2 9,8 3,3 12,9 Other operating expenses 0,0 0,0 -0,4 -0,4 Operating profit -1,6 -35,2 14,9 -18,7 Finance income 9,8 2,3 12,2 4,7 Finance costs -8,3 -6,4 -35,4 -33,5 Result before tax -0,1 -39,2 -8,3 -47,5 Income tax -0,1 9,6 2,8 12,5 Net result for the period -0,2 -29,6 -5,5 -35,0 Net result attributable to parent company´s shareholders -0,7 -30,0 -6,4 -35,8 Net result attributable to non-controlling interest 0,5 0,4 0,9 0,8 Net profit for the period -0,2 -29,6 -5,5 -35,0 Other comprehensive income Items that may later be reclassified to the income statement Translation differences when translating foreign operations 2,2 -1,6 -11,0 -14,7 Comprehensive income for the period 2,0 -31,2 -16,5 -49,7 Comprehensive income attributable to parent company´s shareholders 1,5 -31,6 -17,4 -50,5 Comprehensive income attributable to non-controlling interest 0,5 0,4 0,9 0,8 Comprehensive income for the period 2,0 -31,2 -16,5 -49,7 Earnings per share, SEK, before dilution -0,03 -1,31 -0,28 -1,55 Earnings per share, SEK, after dilution -0,03 -1,31 -0,28 -1,55 Average number of shares before dilution, thousands 23 022 23 022 23 022 23 022 Average number of shares after dilution, thousands 23 022 23 022 23 022 23 022 ===== SIDA 10 ===== 10 | Balco Group Interim Report 1 January - 31 March 2026 Consolidated balance sheet in summary 31-Mar 31-Mar 31-Dec MSEK 2026 2025 2025 ASSETS Non-current assets Intangible assets Goodwill 528,4 512,9 527,9 Other intangible assets 280,7 274,0 279,9 Total intangible assets 809,2 786,9 807,7 Tangible assets Right-to-use assets 61,1 68,3 63,0 Property, plant and equipment 204,5 219,6 208,6 Total tangible assets 265,6 288,0 271,6 Financial assets 0,5 1,3 0,5 Deferred tax assets 16,0 8,5 13,9 Total non-current assets 1 091,2 1 084,7 1 093,7 Current assets Inventory 63,0 60,5 60,8 Accounts receivables 137,9 157,5 184,4 Contract assets 176,3 222,9 180,5 Other current receivables 48,7 43,6 45,1 Cash and cash equivalents 169,4 23,5 158,1 Total current assets 595,3 508,0 628,9 TOTAL ASSETS 1 686,5 1 592,6 1 722,6 EQUITY AND LIABILITES Equity Share capital 138,1 138,1 138,1 Other capital contributions 450,8 450,8 450,8 Reserves 5,4 4,9 3,2 Retaind earnings, incl. profit for the year 139,7 158,3 140,4 Equity attributable to Parent Company´s shareholders 734,0 752,2 732,5 Non-controlling interest 4,2 4,4 3,7 TOTAL Equity 738,2 756,6 736,1 LIABILITIES Non-current liabilites Liabilities to credit institutions 475,1 349,6 475,0 Leasing liabilities 43,2 50,3 43,8 Other non-current liabilities 1,1 12,9 11,6 Deferred tax liabilities 59,2 64,8 59,0 Total non-current liabilities 578,5 477,6 589,5 Current liabilities Liabilities to credit institutions 0,2 0,0 0,2 Leasing liabilities 19,8 20,0 21,1 Contract liabilites 86,6 47,5 103,1 Accounts payables 148,6 143,4 157,6 Other current liabilities 114,6 147,5 115,0 Total current liabilites 369,8 358,4 396,9 TOTAL EQUITY AND LIABILITIES 1 686,5 1 592,6 1 722,6 ===== SIDA 11 ===== 11 | Balco Group Interim Report 1 January - 31 March 2026 Consolidated changes in Shareholders´ Equity MSEK Share Capital Addition al paid-in capital Reserves Retained earnings including comprehensive income for the year Non-controlling interest Total equity Opening balance 1 Jan 2025 138,1 450,8 17,9 190,0 4,2 801,1 Comprehensive income for the period Profit for the period -31,7 0,4 -31,3 Other comprehensive income for the period -13,0 -0,2 -13,2 Total comprehensive income for the period -13,0 -31,7 0,2 -44,5 Transactions with shareholders: Total transactions with Company owners -0,0 -0,0 Closing balance 31 Mar 2025 1 3 8 ,1 45 0,8 4,9 1 5 8 ,3 4,4 75 6 ,6 Opening balance 1 Jan 2026 138,1 450,8 3,2 140,4 3,7 736,1 Comprehensive income for the period Profit for the period -0,7 0,6 -0,1 Other comprehensive income for the period 2,2 2,2 Total comprehensive income for the period 2,2 -0,7 0,6 2,1 Transactions with shareholders: 0,0 -0,0 -0,0 Total transactions with Company owners Closing balance 31 Mar 2026 1 3 8 ,1 45 0,8 5 ,4 1 3 9,7 4,2 73 8 ,2 ===== SIDA 12 ===== 12 | Balco Group Interim Report 1 January - 31 March 2026 Consolidated cash flow statement in summary jan-mar jan-mar apr-mar jan-dec MSEK 2026 2025 2025/26 2025 Operating activites Operating profit (EBIT) -1,6 -35,2 14,9 -18,7 Adjustment for non-cash items 11,0 20,2 17,3 26,5 Interest received 1,3 0,9 5,0 4,7 Interest paid -7,8 -6,1 -31,8 -30,1 Income tax paid -4,6 -5,4 -10,7 -11,5 Cash flow from operating activities before changes in working capital -1,8 -25,5 -5,3 -14,1 Changes in working capital Increase (-)/Decrease (+) in inventories -2,1 3,2 -2,5 2,8 Increase (-)/Decrease (+) in current assets 50,0 -47,4 62,6 -34,8 Increase (+)/Decrease (-) in current liabilities -26,5 24,4 25,0 76,0 Cash flow from operating activities 19,6 -45,2 79,8 15,0 Cash flow from investing activities Investments in tangible fixed assets -0,3 -3,8 -9,1 -12,6 Investments in intangible fixed assets -0,4 -1,3 -3,3 -4,2 Acquisitions of operations 0,0 0,0 -20,6 -20,6 Changes in other non-current assets/liabilities -10,5 -11,7 -10,5 -11,6 Cash flow from investing activities -11,2 -16,7 -43,5 -49,1 Cashflow from financing activities Changes in bank loans 0,1 -13,4 127,0 113,6 Changes in leasing -5,7 -5,8 -22,3 -22,4 New warrants issue 0,0 0,0 0,0 0,0 Distributed dividend to non-controlling interest 0,0 0,0 -0,4 -0,4 Cashflow from financing activities -5,6 -19,1 104,3 90,8 Cash flow for the period 2,8 -81,0 140,6 56,8 Cash and cash equivalents at beginning of the period 158,1 103,1 23,5 103,1 Exchange rate differential cash and cash equivalents 8,5 1,4 5,3 -1,8 Cash and cash equivalents at end of the period 169,4 23,5 169,4 158,1 ===== SIDA 13 ===== 13 | Balco Group Interim Report 1 January - 31 March 2026 Key ratios jan-mar jan-mar apr-mar jan-dec MSEK 2026 2025 2025/26 2025 Net sales 298,8 315,9 1 278,0 1 295,1 Order intake 270,2 275,0 1 532,3 1 537,1 Order backlog 1 492,9 1 238,0 1 492,9 1 523,3 Gross profit 47,8 5,3 202,0 159,4 Adjusted Gross Profit 48,8 33,5 198,5 183,1 EBITDA 10,1 -23,5 61,0 27,4 Adjusted EBITDA 11,3 7,7 61,6 58,0 Operating profit (EBITA) -0,9 -33,8 17,8 -15,2 Adjusted operating profit (EBITA) 0,4 -2,7 18,5 15,4 Operating profit (EBIT) -1,6 -35,2 14,9 -18,7 Adjusted operating profit (EBIT) -0,4 -4,0 15,5 11,9 Gross profit margin, % 16,0 1,7 15,8 12,3 Adjusted gross margin, % 16,3 10,6 15,5 14,1 EBITDA-margin, % 3,4 -7,4 4,8 2,1 Adjusted EBITDA-margin, % 3,8 2,4 4,8 4,5 Operating profit margin ( EBITA), % -0,3 -10,7 1,4 -1,2 Adjusted operating profit margin ( EBITA), % 0,1 -0,9 1,4 1,2 Operating profit margin ( EBIT), % -0,5 -11,1 1,2 -1,4 Adjusted operating profit margin ( EBIT), % -0,1 -1,3 1,2 0,9 Operating cash flow 31,8 1,2 130,2 99,7 Operating cash conversion, % 280,1 16,2 211,2 171,9 Capital employed, R12 1 698,9 1 139,1 1 698,9 1 180,3 Capital employed, excl goodwill, R12 1 168,9 624,8 1 168,9 654,3 Equity 734,0 752,2 734,0 732,5 Interest-bearing net debt incl leasing debt 339,9 355,3 339,9 350,2 Interest-bearing net debt excl leasing debt 276,9 284,9 276,9 285,3 Interest-bearing net debt incl leasing/Adjusted EBITDA 12 months, times 5,5 3,9 5,5 6,0 Interest-bearing net debt excll leasing/Adjusted EBITDA 12 months, times 7,0 4,0 7,0 7,9 Return on capital employed, % (12 months) 0,9 3,6 0,9 1,0 Return on capital employed, excl goodwill, % (12 months) 1,3 6,6 1,3 1,8 Return on invested capital, % (12 months) -0,8 -3,6 -0,8 -4,8 Equity/assets ratio, % 43,5 47,2 43,5 42,5 Number of full-time employees on the closing date 526 562 526 513 Average number of shares before dilution, thousands 23 022 23 022 23 022 23 022 Average number of shares after dilution, thousands 23 022 23 022 23 022 23 022 Equity per share, SEK 32 33 32 32 Earnings per share, SEK before dilution -0,03 -1,31 -0,28 -1,55 Earnings per share, SEK after dilution -0,03 -1,31 -0,28 -1,55 Adjusted earnings per share, SEK, berfore and after dilution 0,01 -0,24 -0,25 -0,50 ===== SIDA 14 ===== 14 | Balco Group Interim Report 1 January - 31 March 2026 Parent company, income statement in summary Parent company, balance sheet in summary jan-mar jan-mar apr-mar jan-dec MSEK 2026 2025 2025/26 2025 Net Sales 8,3 6,7 28,4 26,8 Administrative expenses -6,8 -6,4 -26,5 -26,1 Operating profit 1,4 0,3 1,9 0,8 Interest income and similar profit/loss items 5,1 4,9 15,7 15,5 Interest expenses and similar profit/loss items -8,4 -4,3 -31,5 -27,4 Dividend / result from group companies 0,0 0,0 -16,0 -16,0 Profit/loss after financial items -1,9 0,9 -29,9 -27,1 Appropriations 0,0 0,0 -10,8 -10,8 Tax 0,6 -0,2 5,9 5,1 Net profit/loss for the period -1,3 0,7 -34,8 -32,8 I n the Parent Com pany there are no i tem s that are reported as other com prehensi ve i ncom , so total com prehensi ve i ncom e i s consi stent wi th the profi t for the peri od. 31-Mar 31-Mar 31-Dec MSEK 2026 2025 2025 ASSETS Non-current assets Financial assets Shares in group companies 1 077,5 1 057,0 1 071,7 Other non-current assets 8,4 4,5 8,4 Total non-current assets 1 085,9 1 061,5 1 080,1 Current assets Receivables from group companies 178,9 211,1 234,2 Other current receivables 17,6 10,5 14,7 Cash and cash equivalents 167,1 18,4 154,6 Total current asstes 363,6 240,0 403,4 TOTAL ASSETS 1 449,5 1 301,5 1 483,5 EQUITY AND LIABILITIES Equity Restricted equity 138,1 138,1 138,1 Non-restricted equity 663,9 699,9 666,4 Total Equity 802,1 838,1 804,5 LIABILITIES Non-current liabilities Liabilities to credit institutions 475,0 350,0 475,0 Other non-current liabilities 4,4 14,2 14,9 Total non-current liabilities 479,4 364,2 489,9 Current liabilities Liabilities to group companies 144,0 77,5 165,5 Other current liabilities 24,1 21,8 23,6 Total current liabilities 168,1 99,2 189,1 TOTAL EQUITY AND LIABILITIES 1 449,5 1 301,5 1 483,5 ===== SIDA 15 ===== 15 | Balco Group Interim Report 1 January - 31 March 2026 Notes Note 1 Accounting principles This consolidated interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provi sions of the Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with RFR 2 and Chapter 9 of the Swedish Annual Accounts Act, Interim Report. For both the Parent Company and the Group, accounting principles and calculation bases have been applied in the same manner as for the Annual Report 2025, which was prepared in accordance with the International Financial Reporting Standards as adopted by the EU and interpretations thereof. The interim information on pages 1 –8 forms an integral part of this financial report. Note 2 Business segments Balco reports according to the following segments: Renovation: includes replacement and expansion of existing balconies as well as installation of new balconies on apartment buildings without balconies. The main market driver for the segment is the age profile of the residential property portfolio. New Build: includes the installation of balconies in conjunction with the construction of apartment buildings and balcony solutions in the maritime area. The segment is mainly driven by the rate of new residential construction. jan-mar MSEK 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Net sales - External revenue 228,9 236,4 69,9 79,4 - - - - 298,8 315,9 Net sales - Internal revenue - - - - 8,3 6,7 -8,3 -6,7 - - Total sales 228,9 236,4 69,9 79,4 8,3 6,7 -8,3 -6,7 298,8 315,9 Justerat med 0,933 för IAC som är rapporterat på Dummy I Aaro och 0,317 som är Amortization som är rapporterat på Dummy I Aaro. Även justerat 0,049 för Amortization mellan Renovering och NybyggnationOperating profit (EBIT) 1,0 -30,9 -2,3 -3,7 -0,3 -0,5 - - -1,6 -35,2 Depreciation included with 9,9 9,2 1,8 2,4 - - - - 11,7 11,7 of which amortizarion 0,7 1,3 0,0 0,1 - - - - 0,7 1,3 Items affecting comparison 1,0 25,1 0,2 5,9 - 0,2 - - 1,2 31,1 Adjusted operating profit (EBITA) 2,7 -4,6 -2,1 2,2 -0,3 -0,3 - - 0,4 -2,7 Adjusted operating margin 1,2% -1,9% -3,0% 2,8% - - 0,1% -0,9% Operating profit (EBIT) 1,0 -30,9 -2,3 -3,7 -0,3 -0,5 - - -1,6 -35,2 Finance income - - - - 9,8 2,3 - - 9,8 2,3 Finance cost - - - - -8,3 -6,4 - - -8,3 -6,4 Justerat med 0,933 för IAC som är rapporterat på Dummy I Aaro och 0,317 som är Amortization som är rapporterat på Dummy I Aaro. Även justerat 0,049 för Amortization mellan Renovering och NybyggnationProfit before tax 1,0 -30,9 -2,3 -3,7 1,3 -4,6 - - -0,1 -39,2 Renovation New Build Group-wide Eliminations Total ===== SIDA 16 ===== 16 | Balco Group Interim Report 1 January - 31 March 2026 Note 3 Reconciliation with IFRS financial statements Balco’s financial statements include alternative performance measures, which complement the measures that are defined or specified in applicable rules for financial reporting. Alternative performance measures are presented since, as in their context, they provide clearer or more in-depth information than the measures defined in applicable rules for financial reporting. The alternative performance measures are derived from the Company’s consolidated financial reporting and are not measured in accordance with IFRS. 31-mar 31-mar 31-dec MSEK 2026 2025 2025 Interest-bearing net debt incl leasing debt Non-current interest-bearing liabilities 518,3 399,9 518,9 Current interest-bearing liabilities 20,0 20,0 21,3 Cash and cash equivalents -198,4 -64,7 -190,0 Interest-bearing net debt incl leasing debt 339,9 355,3 350,2 Adjusted EBITDA (R12) 61,6 90,0 58,0 Interest-bearing net debt/EBITDA (R12), times 5,5 x 3,9 x 6,0 x Return on capital employed Equity 734,0 752,2 732,5 Interest-bearing net debt 339,9 355,3 350,2 Average capital employed 1 125,8 1 161,1 1 113,0 Adjusted operating profit (EBIT), (R12) 15,5 41,3 11,9 Return on capital employed, % 1,4 3,6 1,1 Equity/assets ratio Equity attributable to owners of the parent company 734,0 752,2 732,5 Total assets 1 686,5 1 592,6 1 722,6 Equity/assets ratio, % 43,5 47,2 42,5 ===== SIDA 17 ===== 17 | Balco Group Interim Report 1 January - 31 March 2026 jan-mar jan-mar apr-mar jan-dec MSEK 2026 2025 2025/26 2025 Adjusted operating profit (EBIT) Operating profit (EBIT) -1,6 -35,2 14,9 -18,7 Re-structuring costs 1,2 30,9 -16,8 30,3 Acquisition costs 0,0 0,2 17,5 0,3 Adjusted operating profit (EBIT) -0,4 -4,0 15,5 11,9 Operating profit (EBITA) Operating profit (EBIT) -1,6 -35,2 14,9 -18,7 Amortization 0,7 1,3 2,9 3,5 Operating profit (EBITA) -0,9 -33,8 17,8 -15,2 Adjusted operating profit (EBITA) Adjusted operating profit (EBIT) -0,4 -4,0 15,5 11,9 Amortization 0,7 1,3 2,9 3,5 Adjusted operating profit (EBITA) 0,4 -2,7 18,5 15,4 Adjusted net result Net result -0,2 -29,6 -5,5 -35,0 Items affecting comparison after tax 1,0 24,6 0,5 24,2 Adjusted net result 0,8 -5,1 -5,0 -10,8 EBITDA Operating profit (EBIT) -1,6 -35,2 14,9 -18,7 Depreciation and amortization 11,7 11,7 46,1 46,1 EBITDA 10,1 -23,5 61,0 27,4 Adjusted EBITDA Adjusted operating profit (EBIT) -0,4 -4,0 15,5 11,9 Depreciation and amortization 11,7 11,7 46,1 46,1 Adjusted EBITDA 11,3 7,7 61,6 58,0 Investments, excluding expansions investments Investments in intangible fixed assets -0,3 -3,8 -9,1 -12,6 Investments in tangible fixed assets -0,4 -1,3 -3,3 -4,2 of which expansion investments 0,3 1,7 10,9 12,3 Investments, excluding expansions investments -0,4 -3,3 -1,6 -4,5 Operating cash flow Adjusted EBITDA 11,3 7,7 61,6 58,0 Changes in working capital 20,8 -3,1 70,1 46,2 Investments, excluding expansions investments -0,4 -3,3 -1,6 -4,5 Operating cash flow 31,8 1,3 130,2 99,7 Net Sales excluding acquisitions Net Sales 298,8 315,9 1 278,0 1 295,1 Acquired net sales 0,0 -24,6 0,0 -24,6 Net Sales excluding acquisitions 298,8 291,3 1 278,0 1 270,5 Adjusted earnings per share Net result attributable to parent company´s shareholders -0,7 -30,0 -6,4 -35,8 Items affecting comparison after tax 1,0 24,6 0,5 24,2 Adjusted earnings per share 0,01 -0,24 -0,25 -0,50 ===== SIDA 18 ===== 18 | Balco Group Interim Report 1 January - 31 March 2026 Alternative performance measures This interim report contains references to several performance measures. Some of these measures are defined in IFRS, while ot hers are alternative measures and are not reported in accordance with applicable financial reporting frameworks or other legislation. The measures are used by Balco to help both investors and management to analyze its operations. The measures used in this interim report a re de- scribed below, together with definitions and the reason for their use. Alternative KPIs Definition Purpose Return on equity Profit for the period divided by average equity attributable to the parent company's shareholders. The average is calculated as the average of the opening balance and the closing balance for each period. The measure shows the return generated on the shareholders' capital invested in the company. Return on capital employed Adjusted operating profit (EBITA) divided by average capital employed. The average is calculated as the average of the opening balance and the closing balance for each period. The measure shows the return generated on capital employed and is used by Balco to track the profitability of the business as the measure refers to capital efficiency. Return on capital employed excluding goodwill Adjusted operating profit (EBITA) divided by average capital employed excluding goodwill. The average is calculated as the average of the opening balance and the closing balance for each period. Balco believes that return on capital employed excluding goodwill, together with return on employment, shows an overall picture of Balco's capital efficiency. Gross profit Net sales less production and project costs. Shows efficiency in Balco's operations and together with EBIT provides an overall picture of the ongoing profit generation and cost picture. Gross margin Gross profit as a percentage of net sales. Key figures are used for the analysis of efficiency and value creation. EBITDA Profit before interest, tax, depreciation and amortization. Balco believes that EBITDA is a useful measure to show the profit generated in operating activities and a good measure of cash flow from operating activities. Interest-bearing net debt in relation to adjusted EBITDA Interest-bearing external net debt as a share of adjusted EBITDA. Balco believes that this measure is helpful in demonstrating financial risk and that it is a useful measure for monitoring the company's level of debt. Adjusted EBITDA EBITDA adjusted for items affecting comparability. For a reconciliation of adjusted EBITDA with profit for the period. Balco believes that adjusted EBITDA is a useful measure to show the profit generated in operating activities adjusted for items affecting comparability and primarily uses adjusted EBITDA when calculating the company's operating cash flow and cash conversion. Adjusted EBITDA margin Adjusted EBITDA as a share of net sales. Balco believes that the adjusted EBITDA margin is a useful measure to show the profit generated in operating activities. Adjusted operating margin (EBIT) Adjusted operating profit (EBIT) as a share of net sales. Balco believes that adjusted operating margin (EBIT) is a useful measure to show the profit generated in operating activities after adjusting for non-recurring items. Adjusted operating profit (EBIT) Operating profit (EBIT) adjusted for items affecting comparability. For a reconciliation of adjusted operating profit (EBIT) with profit for the period. Balco therefore considers adjusted operating profit (EBIT) to be a useful measure to show the result generated in operating activities and primarily uses the measure to calculate return on capital employed (see above). Adjusted operating margin (EBITA) Adjusted operating profit (EBITA) as a share of net sales. Balco believes that adjusted operating margin (EBITA) is a useful measure to show the profit generated in operating activities after adjusting for non-recurring items. ===== SIDA 19 ===== 19 | Balco Group Interim Report 1 January - 31 March 2026 Alternative KPIs Definition Purpose Adjusted operating profit (EBITA) Operating profit (EBITA) adjusted for items affecting comparability. For a reconciliation of adjusted operating profit (EBITA) with profit for the period. Balco therefore considers adjusted operating profit (EBITA) to be a useful measure to show the profit generated in operating activities and primarily uses the measure to calculate return on capital employed (see above). Items affecting comparability Items affecting comparability are significant items that are recognized separately due to their size or frequency, such as restructuring charges, impairments, divestments and acquisition costs. Balco believes that adjustment for items affecting comparability improves the possibility of comparison over time by excluding items with irregularities in frequency or size. This is to provide a more accurate picture of the underlying operating profit. Operating cash conversion Operating cash flow divided by adjusted EBITDA. Balco considers this to be a good measure for comparing cash flow with operating profit. Operating cash flow Adjusted EBITDA increased/decreased with changes in working capital and decreased with investments, excluding expansion investments. Balco uses operating cash flow to track the development of the business. Organic growth Net sales excluding acquired growth in the current period divided by net sales in the corresponding period last year. Organic growth excludes the effects of changes in the Group's structure, which enables a comparison of net sales over time. Interest-bearing net debt Total long - and short -term interest -bearing liabilities reduced by cash and cash equivalents and interest-bearing receivables. Balco believes that net debt is a useful measure to show the Group's total debt financing. Working capital Current assets, excluding cash and cash equivalents and current tax assets, reduced by interest-free current liabilities, excluding current tax liabilities. This measure shows how much working capital is tied up in the business and can be put in relation to turnover to understand how effectively tied up working capital is used. Operating margin (EBIT) Operating profit (EBIT) as a share of net sales. Balco believes that operating margin (EBIT) together with sales growth and adjusted working capital is a useful measure to track value creation in the business. Operating profit (EBIT) Earnings before interest and tax. Balco believes that operating profit (EBIT) is a useful metric to show the profit generated in operating activities. Operating margin (EBITA) Operating profit (EBITA) as a share of net sales. Balco believes that operating margin (EBITA) together with sales growth and adjusted working capital is a useful measure to track value creation in the business. Operating profit (EBITA) Operating profit (EBIT), excluding depreciation and amortization of acquired intangible non - current assets. Balco's growth strategy includes acquisitions of companies. In order to better illustrate the development of the underlying business, management has chosen to follow EBITA, which is an expression of operating profit before depreciation and amortization of acquired intangible assets. Equity ratio Equity divided by total assets. Balco believes that the equity ratio is a useful measure for the company's survival. Capital employed Equity increased with interest -bearing net debt. Capital employed is used by Balco as a measure of the Group's overall capital efficiency. Capital employed excluding goodwill Capital employed minus goodwill. Capital employed, excluding goodwill, is used together with capital employed by Balco as a measure of the company's capital efficiency. ===== SIDA 20 ===== Balco Group in brief Balco Group is a market leader in the balcony industry, where we develop, manufacture, sell and take responsibility for the installation of our own bespoke open and glazed balcony systems. The Group's customized products contribute to increased quality of life, security and increase d value for the residents of apartment buildings. In addition, Balco Group's standardized glazing systems generates reduced energy consumption. 526 employees Balco Group was established in 1987 and is a group consisting of producing and selling companies. The Group is the market leader in the Nordic region and operates in a number of markets in Northern Europe. The head office is located in Växjö. A general and distinctive feature of the companies in the Group is a decentralised and efficient sales process that controls the entire value chain – from sales work to installed balconies. 7 markets 1,278 MSEK net sales R12 35,000 sqm total production area