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In 2025, DEIF’s turnover grew by 14% compared to 2024. At the same time, we continued investing heavily intransforming DEIF from a supplier of genset controllers into a provider of a broad portfolio of future-ready products that supports the ongoing transition of the energy sector andthe wider society. In 2025, we made important progress on our transformation.With an expanded global presence, a growing productoffering, and rising demand for intelligent energymanagement solutions, our turnover reached 869 DKKm, which reflects an impressive 14% growth in a highlycompetitive market. The operating margin (EBITDA) ended at13%, below expectations and below recent years’ level. Thisoccurred due to adverse currency movements impactingresults by around 3 percentage points. Adjusted for currency movements we ended at 16%, which is in line with last yearand in line with expectations. The underlying business performance remained sound and the growth was profitable. The EBIT margin ended at 3.7%, which is below our long term target of a minimum 10%. This development was primarilydriven by adverse currency movements, combined with continued strategic investments, including increasedspending on research and development (18% of turnover)and further expansion of our global presence. Theseinvestments are intended to support DEIF’s long term growth and competitiveness, and management expects animprovement in EBIT margin. For 2026 the EBIT margin is expected to reach 8-10 %.LETTER FROM THE CEO Strong growth and groundbreaking new product offering Looking at our customer portfolio and order volumes, we continue to see significant year-on-year growth, reflecting our strong position in the global market. I want to thank both new and longstanding customers for their trust in oursolutions and services.Investing in market-leading converter technologyIn 2025, we advanced the launch of our innovative power converters. Power converters are a key enabler of electrified and hybrid energy systems, as they manage and control the conversion of electrical energy between different sources(e.g. solar and wind), batteries, generators and the grid.Successful demonstration projects in both marine andland-based applications, in close collaboration withcustomers, confirmed the exceptional speed and efficiency of our solution, which is built on cutting-edge silicon-carbide technology. And they allowed us to see thestrategic importance of combining energy conversion and advanced control into one integrated offering. In parallel, we carried out laboratory tests of the nextversions of DEIF power converters - with great success. This is of high importance as the conversion technology is rapidly evolving toward higher efficiency and smarter functionality, driven by the accelerating energy transition and electrification agenda. By being at the forefront of these silicon-carbide based solutions, DEIF is strongly positioned to play a leading role in energysystems worldwide.Expanding our development presence in Graz and ZagrebAt the beginning of 2026, we took an important step and expanded the development organisation in Graz,Austria, and with a new hub in Zagreb, Croatia,strengthening our capabilities within power electronics and silicon carbide converter technology. The new hubs build on the strong technical foundation established through our collaboration with AVL, the leading mobility technology company in Austria, and Wolfspeed, the global leader in silicon carbide technologies. This ensures continuity while allowing DEIF to further growand lead the development of the next generationsbased on Wolfspeed Gen 4 SiC technology to enablehigher efficiency and more compact convertersolutions. We are excited to work with experiencedspecialists and new talent in the region, committed to shaping high-efficiency energy applications andsolutions.Growing our global presence2025 delivered strong growth across our global regions. Between 2023 and 2025, we doubled our international sales force and expanded our local technicalcapabilities, enabling us to deliver the high-quality service and support that customers consistentlyassociate with DEIF. During the year, we strengthened our global presence further. We opened a subsidiary in Australia, staffed by experts dedicated to developing this strategically important market. Looking ahead, we are also enhancing our presence in Eastern-Central Europe with a new office in Croatia in 2026, and an additional office in Turkey, which will help us leverageopportunities in another rapidly growing market. Likewise, a new joint venture in Japan, becoming operational in 2026, will strengthen our position in this important market.To support the expansion of activities, we are also rolling out a channel partner strategy that will reinforce our global network of skilled dealers and distributors, allowing us to reach and support new customers worldwide.All DEIF products are supplied from our state-of-the-art factory inDenmark, and most products are delivered within just seven days. In 2025, our average delivery performance was close to 94%, with a performance of 99% and above in the last five months of the year. At the same time, our online Customer Portal continued to gain traction with 12% of ordersbooked online, an uptake that is expected to increase further in 2026 and beyond.Increased focus on leadership and culture In 2025, we sharpened our strategic focus on leadership and culture, which we consider fundamental for achieving our long-term ambitions. Weintroduced three leadership principles that will guide a step-change in how we lead the organisation: ‘Own the strategy’, ‘Deliver high performance’and ‘Develop people’. These principles set clear expectations and provide a strong framework for leadership excellence across DEIF.At the same time, the cultural transformation launched last year continued to gain momentum. We are working systematically to embed a growthmindset and a winning attitude throughout the organisation, coupled with greater speed, accountability and execution power. We believe that this combination of a consistent leadership approach, our high-performance culture and the long-term perspective enabled by our family ownership creates a powerful formula. It helps us attract, develop and retain toptalent while driving profitable and sustainable growth well into the future.Positive outlookIn 2026, we expect double-digit growth, while improving operating profits to minimum EBITDA of 16%. Product development will remain a corepriority, with particular focus on advanced converter technology and fully compliant, cybersecure solutions that enable and accelerate the global energy transition.We will also continue our journey towards achieving our ambition of becoming the global market leader in intelligent energy control by 2030.The coming year will be a decisive milestone in succeeding with this ambition.Continuing our decarbonisation journeyIn parallel, we will continue our efforts to meet our commitment to Science Based Targets initiative (SBTi) and reduce GHG emissions in our value chain by 42% by 2030 – an important step in meeting customerexpectations and ensuring that our own operations reflect the more sustainable future we help our customers achieve.To decarbonise, many different levers need to be used, as there is not one single initiative, which will ensure that DEIF will achieve its targets. Yet a decarbonisation lever, which plays a key role is the carbon intensity of the national electricity grids used in our value chain. This is particularlyimportant since the categories Purchased goods and services and Use of sold products together account for 89% of our total greenhouse gasemissions in 2025. For both categories, grid decarbonisation around the world, but particularly in Asian countries will be critical for achieving our target.Progress toward DEIF’s near-term Scope 3 target is highly dependent on the pace of decarbonisation of national electricity grids. While a full decarbonisation of the grid by 2030 (-95%) would bring DEIF close to the target, IEA-supported projections indicate a decarbonisation of roughly 17% by 2030. The projected grid decarbonisation is expected to make an important contribution but will not be sufficient on a standalone basis. This underlines efforts within Purchased Goods and Services as well as Use of Sold products and additional smaller categories to be vital to achieve its near-term target.Acknowledging this dependence, our sourcing strategy will prioritise suppliers that use renewable energy or have an SBTi target. Today 34% of suppliers (based on GHG emissions) have committed to SBTi. From 2026, 95% of our PCBs will be sourced from locations with 100% renewableelectricity. Where feasible DEIF will consider insourcing to HQ in Denmark where we expect to have 95% renewable energy, and we will also need to use our voice to push the agenda of renewable energy adaption and grid decarbonisation. In parallel, we will investigate the actual use phaseemissions of our products further. In 2025, DEIF sold more than 150,000 power-consuming units. While individual products have a weighted-average operating power of only 3.47 W, the associated electricityconsumption over a ten-year lifetime (assuming continuous 24/7 operation) is material. We will therefore continue exploring new technologies to further reduce power consumption of the products we sell. The challengeis engaging for DEIF as the products we deliver are obviously important for the same global decarbonisation.Improving tomorrow, together I would like to once again extend my sincere thanks to our customers and partners for their close cooperation, which continues to inspire our journey towards more sustainable energy applications, pushing us to set new standards. I also want to thank all my colleagues at DEIF. Our strong global team is the foundation for realising our ambition to become market leader in intelligent energy control. I look forward to the continued cooperation to improve tomorrow.Christian Nielsen, Group CEO of DEIF A/S 869 DKKm trusted supplier and strategic R&D investment innovative new power converters. EBITDAAbout DEIFAt DEIF, we enable our customers to accelerate the green energy transition by optimising their power generating systems, prolonging lifetime of their assets, and by integrating renewable energy sources. We ensure optimal operation of any power application by combining advanced energy control systems with reliable energy conversion solutions.DEIF is present all over the world and we offer our customers peace of mind– by ensuring that power is always available at hospitals, remote power plants, windfarms, advanced hybrid systems, large events, subways, airports, anddata centres around the world.We provide a full line of electronic devices that are reliable, compatible and can be tailored to meet specific needs – today and tomorrow. Our work isshaped by our unique application know-how, our local and global presence, decades of experience, and our DNA as a family-owned and independent company.We believe in close and honest long-term collaborations, and we are united in our ambitions to enter new territories - empowering an ever-growing network of integrators, OEMs and asset owners with the best and most efficient control devices and energy conversion systems that can Improve Tomorrow.Family ownershipSince 1933, the Foss family has been the owners of DEIF. The familyownership enables a long-term, responsible approach to businessdevelopment, guided by the owner’s vision: “To develop the company’s value in the long term, always based on high ethical standards in relation to ouremployees, business partners, and society as a whole”. Across all activities, DEIF is committed to integrity, legal and regulatory compliance, human rights, fair competition, anti-corruption and the protection of data privacy.of all newbuild data centers worldwide in 20-25%2025 include solutions from DEIFof all newbuild ships in 2025 (IMO-registered) have DEIF controllers installed40%The World of DEIFFossil fuels will remain part of our energy mix for years to come - but the shift toward smarter, cleaner solutions is well underway. At DEIF, we believe in improving together, supporting the energy systems of today while helping build a more sustainable tomorrow.Howwecreatevalue-Ourbusinessmodel Key resourcesBusiness activities People & People & CompetencesDEIF’s key resource is our approx. 700highly qualified and skilled employees, ofwhich around 20% work in R&D, focusing on delivering a broad product concept with cutting-edge products that meet the growing market demands. The organisation combines deep technical and applicationknowledge within our core markets with strong expertise across the entire value chain.PartnershipsThe continuous development of our business is fueled by close partnerships with customers, OEMs, suppliers, channel partners, industry professionals,organisations, and many more. Strongcollaborations are vital for our continued growth as they enable us to keep pushing limits, offering the latest technology,decreasing time-to-market and maintaining excellent delivery performance.Financial InvestmentsDEIF’s owners are consistently investing in the company’s long-term development andongoing expansion. These investmentsallow DEIF to execute its strategy and goal of becoming the market leader in intelligentenergy control.Raw materials Raw materials are sourced by DEIF’ssub-suppliers to produce components for DEIF. These raw materials include, amongst others, minerals, aluminum, silicone, andpolymers.Specialised sub-suppliers deliver materials and components to DEIF’s tier 1 suppliers. The main components delivered to DEIF are raw PCBs (Printed Circuit Boards), electro-nic components, mechanical componentsand Original Equipment Manufacturer (OEM) products. Within our raw PCB supply chain, we are transitioning to sub-suppliers capable of reducing emissions by up to 95% by using 100% renewable energy sources.Supplier and Manufacturer assessments are increasingly focused on ESGperformance, including commitment toSBTi targets. We work closely withsuppliers and partners to advance our sustainability agenda to achieve shared emission reductions.R&D and in-house testing Sales R&D is developing and maintaining products (hardware and software) - enabling a leading market position on product quality, performance, user friendliness, cost, andtime-to-market.Final products are manufactured, tested, and quality controlled in Skive, Denmark. DEIF complies with ISO 9001, ISO 14001, and ISO 27001 standards. We minimise environmental impact through materialefficiency, waste recycling, responsible chemical management, and by protectingthe environment from harmful emissions.DEIF Headquarters in Skive has its entire electricity usage covered by renewable energy sources through means of own production (solar PV), a Power PurchaseAgreement (PPA), and Guarantees of Origin (GOs). All materials and products arepackaged and shipped using various transportation modes, with recycled cardboard used for packaging from Denmark.DEIF’s products are sold worldwide to a large number of customers, operating in a range of different segments. We sell anddistribute our products either directly from Denmark, through our own localsubsidiaries or via trusted distributors tosystem integrators, genset manufacturers, switchboard builders or directly to asset owners (e.g., owners of datacenters, hybrid power plants, ships or wind parks).Our regional and local presence with ownsubsidiaries and sales representatives is an important part of our strategy and business success. DEIF offers a standard delivery time of seven days, and in 2025, wedelivered 93.9% as confirmed to the customer.Customer ValueDEIF creates value for our customers bydelivering reliable, efficient and high quality energy management products and solutionsthat support customers’ operational performance and long termcompetitiveness. We support the greenenergy transition with products andsolutions that enable customers to make a positive impact – for example by upgrading wind turbines resulting in increased power production and prolonged lifespan, or bydelivering power management systems forhybrid power plants, integrating sourcessuch as solar, wind and batteries. Strong application knowledge, global presence, andregional training facilities ensure a close cooperation with customers to maximizevalue.Social ValueAt DEIF, we want to offer our employees a positive and meaningful place to work. We provide a great workplace for ouremployees, and we maintain a high employee engagement (for furtherreference, see page 49). Further, we are supporting local and regional communities and initiatives the places we reside.Strategy and ambitionstowards 2033Accelerating growthThe ambition of DEIF is to become market leader inintelligent energy control by 2030 and triple revenue by 2033 – the 100th anniversary of the company. A key part of this ambition is to increase the share of revenue from products and solutions for renewable energy applications.Our growth ambitions are supported by a disciplined capital allocation model, where investments areprioritised towards technology leadership in core products and the selective expansion of globalsales, service and development capabilities.To achieve these goals, we have the followingstrategic priorities:• Offer a complete product portfolio forintelligent energy control, including power converters, controllers, PLCs, and protectionrelays.• Maintain technology leadership, delivering thesmartest products with top-tier cybersecurity and expanding our portfolio of open, programmable solutions.• Expand our global presence by strengthening local sales, service and support capabilitiesand by building a strong channel partner network.• Help customers optimise performance, while reducing DEIF’s own environmental impact across the value chain.• Foster strong leadership and a ‘winningtogether’ culture, combining deep expertise with strong execution and perseverance to deliver cutting-edge solutions and exceptional customer service.OUR PURPOSE OUR AMBITIONS DEIF has approved near and long-term science-based emissions reduction targetsthe value chain by 2050. (see page 38) Progress on strategic priorities in 2025 Climate impactBy the end of 2024, SBTi approved DEIF’s near-term and net-zero Greenhouse gas (GHG) emissions reduction targets. During 2025, welaunched several initiatives to reduce GHG emissions in the entire value chain, notably the collaboration with our supplier of PCBs to find ways of reducing the GHG emissions of PCB production. As an important initiative forward a decarbonisation plan will be performed in 2026 to calculate, define and prioritise, how and what we must do to close the emission gap to reach the 42% reduction target. More information on decarbonisation on pages 41-42.Digitalisation, automation and cyber security At DEIF’s electronics factory in Denmark, all production processes take place under one roofin highly efficient production processes. In 2025, preparations for the new power converter production proceeded, and the packaging/ shipping areas were upgraded with a high degree of automation and lifting equipment to improve ergonomics. More information about our production on page 23.In 2025, DEIF achieved ISO 27001 certification (Information Security Management System), demonstrating our ability to build, implement, and maintain a company-wide system forinformation security. Furthermore, we launched several marine controllers with IACS UR E27 approved cybersecurity.Technical leadershipDevelopment of DEIF’s new power converters gained momentum in 2025, and demo projectswere successfully carried out with customers.The portfolio of iE controllers for marine and land-based applications was extended. Inaddition, we strengthened our technical capabilities with a particular focus on processing power, user interface design, connectivity, cloud/remote monitoring, grid code compliance, cybersecurity and functional safety certifications. More information on our R&Dactivities on page 22.Global presenceIn 2025, DEIF significantly strengthened the global presence to support the ambitiousgrowth targets and to remain a trusted supplier for customers, offering strong local service and support. Key initiatives included adding localsales and technical resources in many markets, strengthening our network of channel partners and continuing to offer extensive training from all subsidiaries.Leadership and culture The overarching vision is to strengthen leadership capabilities and carry out atransformation of the company culture to support DEIF’s ambitious growth strategy. In 2025, we increased the focus on leadership, prepared a set of leadership principles and started the implementation of the principlesthroughout the organisation. More information on leadership and culture on pages 10-11.Strategic focus: LeadershipAchieving the strategic ambitions of becomingmarket leader in intelligent energy control and triplingrevenue by 2033 depends on strong leadershipcapabilities at all levels and across all functions in the global organisation.In 2025, we therefore decided to make a step change in our leadership based on a new set of leadershipprinciples. Based on the fundamental principles of ‘Own the strategy’, ‘Deliver high performance’ and ‘Develop people’, the goal is to foster a leadership style, which:• Inspire employees to perform at their best, in teams and as individuals• Break down the silos with teams working closely together across functions and markets• Foster courageous mindsets and conversations that dare challenge status quo• Create a safe work environment with opportunities for personal and professional developmentThe first workshops to embed the leadershipprinciples were carried out in 2025 in almost all headquarter functions. In December, regional and subsidiary managers met in Denmark for an introduction to the principles and discussions on how to improve as individuals and teams. The workshop was a train-the-trainer session, and in 2026, the regional and subsidiary managers will conduct similar workshops with their management teams to ensure understanding and buy-in at all levels.“The transformational journey at DEIF depends on competence, persistence, speed and agility in our R&D activities. Leadership plays a crucial role in achieving this by ensuring the DEIF ambitions are embedded throughout the organisation. We want the mantra ‘take responsibility, make decisions and take action’ to pervade the organisation at all levels. In fact, I would like every employee to act with ‘What is best for the whole company’-mindset.” “In our region, the leadership team is fully aligned on the need for a step-change in leadership and culture. We have already started the process by conducting several workshops with external facilitators with primary focus on fostering a culture of courage and action that leads to growth in both our existing strongholds and in new areas like converters.” Own the Strategy “The leadership principles have given us a common language, a common denominator for what we expect of each other, how we can measure success and what needs to be improved. My leadership team has clearly adopted the principles as the foundation for developing leadership competences, seeing more nuances and including more aspects in our decision-making.” Operation Strategic focus:CultureAchieving DEIF’s ambitious growth strategy demands a cultural transformation - one that makes us faster, smarter and more agile. This transformation isembodied in our ‘Winning Together’ mindset: a culture of involvement and collaboration thatempowers us to turn strategic ambitions into reality and differentiate DEIF from the competition.We want to foster a culture that focuses on achieving high performance while preserving thefamily spirit at DEIF. Back in 2023, we identified five essential cultural shifts needed to achieve ourlong-term ambitions. These shifts have sinceinspired the formulation of five cultural traits that will characterise our company going forward:Following the first wave of Culture Lab sessions in 2024, involving all team members in creating amindset for growth and having courageousconversations, 2025 was a year, where the cultural traits have been discussed and embeddedthroughout the organisation – on team and individual levels.Our Employees Satisfaction Survey 2025 contained aset of questions relating to DEIF’s company culture. The survey revealed that there is still work to do to improve empowerment and accountability and build a strong ‘winning together’ attitude. This workcontinues in 2026.“It is amazing how strong the DEIF culture is. This autumn, my team of more than 100 people from many different countries gathered in Vietnam for a 5-day team-building event. We come from very different national cultures but immediately felt united by our common DEIF culture – a good combination of high performance and unique family values of respect and care.” “Culture change is a journey, not a one-time event. We have made a strong start with our extensive Culture Lab sessions, and we are committed to ongoing follow-up through different activities that track progress and pinpoint next steps. There is a shared understanding across the organisation that a significant shift in culture is essential – and that recognition hereof is a strong foundation for the ahead.” Communication & Sustainability Financial and ESG highlights 2025DKKm 20252024202320222021Profit/lossNet revenue868.9765.6715.3 672.9551.1 Gross profit/loss 471.5 423.6399.0360.9298.8Earnings before interest. taxes. depriciation and 109.6124.3121.7 118.3 89.3amortization (EBITDA)Earnings before interest and taxes (EBIT)32.355.963.755.1 39.5Profit/loss before tax 16.1 39.6 51.1 47.229.0Annual profit 15.9 29.439.037.663.2- from discontinued operations----37.2Balance sheet:Balance sheet total 843.6779.3718.8606.9777.8Equity254.3 251.6 244.7228.6202.7Cash flowsCash flows from: - operating activities99.7108.058.8218.043.2- investing activities -144.1 -134.8 -162.1 -77.2-63.9- of this. tangible and intangible fixed assets -143.6 -134.6 -161.7 -77.0-63.7- financing activities44.634.8105.9 -131.7 7.9Annual change in cash0.28.02.6 9.1 -12.8 RatiosGrowth 13.5% 7.0% 6.3% 22.1% 3.6%Gross margin54.3%55.3%55.8%53.6%54.2%EBITDA - margin 12.6% 16.2% 17.0% 17.6% 16.2% Profit ratio (EBIT) 3.7% 7.3% 8.9% 8.2% 7.2% Return on capital employed3.8% 7.2% 8.9% 9.1% 5.1% Solvency ratio 30.1% 32.3%34.0% 37.7% 26.1% Return on equity 11.9% 16.5% 17.4% 32.3% The ratios have been prepared in accordance with the guidelines issued by Den Danske Finansanalytikerforening (Danish Society of Financial Analysts).ESG statements20252024202320222021Total GHG emissions (Scope 1-3) (tCO2e) 1Global (total)47,12339,89542,63434,961n/aScope 1 (tCO2e)Global 2 213 250425473316Denmark3267235310203Scope 2 (tCO2e) (market based) Global 2 459 1,361 1,039631266Denmark581,004663425 117Scope 3 (tCO2e)Global 2 46,45238,28341,17033,858n/aEnergy consumption (kWh) Denmark1,764,678 3 1,675,366 3 1,033,506686,585809,447Global2,584,5212,199,3881,599,5681,054,197 1,165,508 No. of employees (FTE) Denmark403385350330 315Foreign subsidiaries246 180 172 163224Total649565522493539Male/Female Employees (%) 73/2772/2872/2871/2970/30Male/Female in Executive Management 5/25/25/23/23/2(number)Male/Female in Board of Directors (%)67/3367/3367/3367/3360/40Employee turnover rate (%)812 6910 Employee engagement (index) 77 n/a78n/aSick leave total (Denmark) (%)2.33.03.03.22.4People in flex jobs (Denmark) (number) 12 9635Learning positions (Denmark) (%)5.65.86.75.41Total GHG emissions (Scope 1-3) includes all categories2Global GHG emissions include emissions from DEIF Denmark3Excluding electricity consumption produced on-site by our own solar panels. 2025: Strong growth and global expansion2025 marked our fifth consecutive year of growth. Supported by our expanded global presence, rising demand for intelligent energy management solutionsand a broader, future-ready product portfolio, turnover increased by 14% to869 DKKm (2024: 766 DKKm). We consider this development satisfactory and in line with expectations.We maintained our strategic focus on strengthening our global presence and accelerating investments in R&D, as well as ramping up our new converter production facilities. Full-time employments (FTE) in our foreign subsidiariesincreased to 246 FTE (2024: 180), while Denmark increased to 403 FTE (2024: 385). As a result, fixed costs rose to 436 DKKm (2024: 390 DKKm). Theseinvestments (as reflected in a ROCE of 3,8%) is a deliberate allocation of capital away from short-term margin optimisation towards scaling new products,strengthening global presence and building the platform for higher, more resilient earnings in the coming years.Turnover and profitability were impacted by adverse movements in key foreign currencies, including USD and CNY. EBITDA ended at 110 DKKm* (2024: 124DKKm. Exchange rates did not have a material impact in 2024), and profitbefore tax was 16 DKKm (2024: 40 DKKm). This development was below our ambitions. Costs increased due to deliberate investments in upgrading organisational capabilities.Looking ahead, we expect to leverage the investments made in 2025 and improve earnings in 2026.* Adjusted for adverse currency movements, EBITDA would be 138 DKKm.2026 OutlookOverall, the market demand for DEIF’s solutions isexpected to remain strong in 2026. The accelerating electrification of the energy and transport sectors and the green energy transition drive demand for DEIF’s products across all regions. Furthermore, we expect to continue the high activity level within efficiency improvements of diesel gensets, still prevalent in manygeographies and applications. At the same time, theincreased global presence of DEIF across all continentswill support the company’s growth.The demand from the marine sector is expected to remain high, following the climate ambitions of the International Maritime Organisation. The number ofnew-build dual-fuel vessels is increasing, and DEIF has a strong position as a preferred supplier of controlsolutions for the full range of hybrid, full-electric and traditional diesel-powered vessels.In 2026, we expect a turnover growth of around 15% compared to 2025. EBIT is expected to reach 80-100 DKKm (8-10%). Capital allocation in 2026 will remainfocused on accelerating high-impact product investments, particularly within the new powerconverter platform, while selectively expanding global market presence and further automating production to support scale and efficiency.Forward-looking statementsThis Annual Report includes forward-looking statements on various matters, e.g., expected earnings and future growth. Such statements are subject to risks anduncertainties, because various factors, many of which are beyond DEIF’s control, may cause actualdevelopments and results to differ from theexpectations set out. Such factors include, but are not limited to, the geopolitical environment, general economic and business conditions, competition,fluctuations in foreign exchange rates or raw material prices, changes in climate policy or legislation.Regionalperformance The global sales and service setup constitutes a key and integral part of DEIF’s business model and long- term growth strategy. The regional organisation, with subsidiaries across four geographical regions,strengthens market and customer insight and provides the foundation for differentiated value creation through targeted go-to-market plans and service and support deliveries.Region Asia-Pacific – High growth rates in land and marinePerformance 2025DEIF’s activities in the Asia-Pacific region recorded significant growth compared to the previous year, fuelled by strong results in China, Korea and Singapore. Marine activities experienced solidprogress in both new builds and retrofit projects, while land-based activities maintained a steadyperformance.The data centre market showed high momentum,especially in China, where DEIF expanded its footprint through close collaboration with local leadingproviders of high-power, energy-efficient gensets and power solutions for data centres.DEIF has been present in China for 20 years and today, the brand enjoys a strong reputation as a trusted supplier of reliable, high-quality power managementsolutions. DEIF China has invested in building a highly skilled technical team to support the growing demand for automation solutions requiring advanced coding expertise and to prepare for the launch of new converter technologies.In 2025, DEIF also strengthened its presence inAustralia by opening a subsidiary.Outlook 2026 The land-power market in China, Eastern Asia andAustralia presents considerable growth potential, and DEIF is actively gearing the organisation for capturing the growth opportunities in data centre development and hybrid energy solutions.At the same time, rising demand for cybersecure marine solutions is creating new avenues for expansion across the region. Japan stands out as a key market for expanding DEIF’s activities, and we are preparing to strengthen our presence in this important market.Region Americas – Strong progress across the region Performance 2025Market conditions across North, South and Central America were favourable in 2025, driving a double-digit increase in DEIF’s regional turnover compared to 2024. Growth was particularly strong in Mexico and Brazil.In the land-power segment, solutions for the rentalsector continued to grow towards microgrids and hybrid applications. At the same time, deliveries to new and retrofitted data centres remained robust,supported by solid demand for DEIF’s controllers andPLC solutions.The region also undertook marine projects, which included engine control optimisation and retrofits, control solutions for coast guard vessels, supply vessels for the oil and gas industry, and shoreconnection projects. Moreover, DEIF established key partnership agreements with service and integrationcompanies in locations such as Florida, Texas, Seattle, and Connecticut. These companies have successfully become DEIF’s authorised dealers and serviceproviders.Brazil demonstrated exceptional strength in the marineand oil & gas sectors this year, and this trend isprojected to continue as new builds expand. On the land side, Brazil has a notable presence in hybridapplications, driving innovative solutions for power storage (Battery Energy Storage Systems, BESS) through a partnership with BRG Geradores.Mexico had a strong year, driven by land applications in the data centre market.The wind retrofit activities remained stable with focus on building strong partnerships with asset owners inthe United States (US). A major win was the retrofit of 100 turbines for EDF Renewables and SkyVestRenewables in California, including a 3-year support agreement.Our new DEIF Academy in Florida played a crucial role in strengthening relationships with partners across the region. During 2025, nearly 150 participants attended training sessions at the facility, which has furthersolidified our commercial relationships with key customers.Outlook 2026 The region is expected to sustain its double-digit growth into 2026, driven by sales of data centreupgrades, expanded rental battery energy storage systems, increased activity in the marine and wind power sectors and expansion of the portfolio of partners and integrators throughout the region.“The entire Asia-Pacific region is transforming at an incredible pace, and the demand for land-power to operate data centres and electrify societies seems limitless. At the same time, the maritime sector’s transition opens exciting new opportunities. Our strength lies in combining cutting-edge, customised solutions with a strong local presence and global partnerships. We believe that this is the key to driving profitable growth in our region.” “Across the American continent, we see great opportunities for DEIF’s new converter series. Several demo projects with customers in land power and marine applications testify to the potential of the new converters, and our expectations to this new business area are very positive.” Region IMEAA (India, Middle East, Anglo Africa)– significant growth in key marketsPerformance 2025In 2025, key markets in India, Saudi Arabia, Nigeriaand South Africa delivered strong growth. Across the IMEAA region, turnover increased substantially compared to 2024, driven by a surge in Battery Energy Storage (BESS) projects that integraterenewables and enhance grid stability. Demand fordata centres was high, accelerated by the expansion of telecom networks and the rapid adoption of AIapplications.In India, the government’s Clean Energy Strategycontinued to increase the deployment of renewables, particularly wind, solar and hydropower. This growingemphasis on hybrid and microgrid solutions created significant opportunities for DEIF, paving the way for new business ventures and increased revenue.The region also maintained a strong focus on the Anglo-African markets by strengthening the channel partner network. In 2025, DEIF opened arepresentative office in Nigeria to offer local sales and service support to customers across Northern Africa.Outlook 2026 India’s Clean Energy Strategy targeting 500 GW of non-fossil capacity by 2030 will continue to drive investments in the coming years. DEIF is well-positioned to capitalise on this momentum in one of the world’s largest energy markets. In March 2026, DEIF will move into a new office in Mumbai and open a DEIF Academy for our customers and expanding network of channel partners across the region.The region also remains committed to strengtheningthe automation business in both the energy and industrial sectors. Our iE x50 PLC-series plays an important role, empowering customers to designintelligent, future-proof energy solutions that meet the market demands.Finally, reinforcing our presence in Anglo-Africancountries will be a key strategic priority in 2026, ensuring deeper market penetration and better customer service and support.Region ENEA (Europe, Near East, Africa) – Continued demand for intelligent power managementPerformance 2025The European market for intelligent power management is mature and showed modest growth in 2025. However, the growing energy demand from data centres and the ongoing electrificationdriven by the green transition opened new market opportunities across land and marine applications. DEIF achieved a solid increase in turnover in the region covering Europe and French-speaking Africa compared to last year, with particularly strong performance in Norway, Turkey, Spain and Germany. Demand for solutions tailored to therapidly expanding European data centre sector was especially high, with DEIF’s iE x50-series playing an important role in meeting the need for reliablepower management.Outlook 2026 The positive market momentum is expected to continue in 2026, especially in supporting hybrid microgrid solutions with an increasing use of renewable energy sources in the energy mix. A key priority will be the testing and further development of DEIF’s new silicon carbide-based converter in close collaboration with strategic partners.Retrofitting wind parks to boost efficiency and extend service life also presents significantpotential, given the large number of ageing turbines across the continent.Another important next step will be to strengthenDEIF’s presence and volumes in Central and Eastern Europe by opening a new office in Croatia and Turkey and expanding the network of trusteddealers, agents and business consultants.opportunities may differ, but the trends are similar and the potential for DEIF is huge. Everywhere we look, societies are accelerating electrification, scaling up renewables and expanding data centre capacity to power digitalisation and AI. We are ready to lead this transformation.” “Europe remains committed to the green energy transition, and DEIF is well-positioned to lead the integration of renewables, wind, solar, fuel-cells, batteries and other innovative energy sources, driving electrification across the energy, transport and industrial sectors in Europe.” Jean-Michel Caillol, Senior Vice President, Region ENEA Global SouthMany countries across Latin America, Asia, Middle East, Africa and Oceania are emerging as keydrivers of global economic growth. These regions are often referred to as the Global South. They are becoming fast-growing energy markets with focus on emerging energy systems, deployment of renewable energy and electrification of diversesectors. This is creating new requirements fortechnology for intelligent energy management and conversion.To support this development, DEIF continues to invest in selected countries within these regions by working closely with customers and partners and establishing local sales, service and technicalcapabilities.2025 in our key business areasLand powerStrong growth driven by data centres, microgrids and rental business DEIF is a leading supplier of advanced control systems for decentralised, land-based powergeneration, with a primary focus on hybrid power plants, data centres and off-grid/on-grid gensets.In 2025, we experienced significant growth in delivering advanced control solutions for datacentres across Asia, the Americas and Europe. Ouremphasis is on highly resilient systems with robust standby power to ensure 100% uptime. The soaring power demand from AI data centres shows no signs of slowing in the coming years.In 2025, we were involved in a growing number of microgrid projects combining solar and battery energy storage. The number of hybrid microgrid projects increased by 40% compared to 2024, and this upward trend is expected to continue.Marine & Offshore Strong performance with focus on cybersecurity DEIF is a world-leading supplier of powermanagement and energy conversion solutions for ships and offshore installations, dedicated to supporting the marine industry’s transition towards more efficient technologies that reduce emissions.In 2025, our marine business had strong traction in a market characterised by growth in both new-builds and retrofits. A key contributor to this success wasour IACS E27-approved iE x50-series of controllers, which played an important role in meeting evolving industry standards.Favourable conditions for shore power to reduce pollution in harbours also boosted demand for our controller and energy conversion solutions in severalmarkets.Wind power Proven performance in large wind parksDEIF specialises in enhancing the efficiency and lifetime of existing onshore wind turbinesthrough control system retrofits. During the lastcouple of years, we have refined our retrofit solution to deliver Annual Energy Production(AEP), ranging from 2-3% gains.Retrofit projects are typically large-scale, involving upgrades of 50-250 turbines.Throughout 2025, DEIF continued working on projects in Europe and the US. With a growing fleet of ageing turbines and proven AEP improvements, the retrofit market is expected to grow in the coming years.ProgressBy 2030, DEIF aims to enable CO₂-equivalent (CO₂e) avoidance through the upgrading of approximately 3,000 installed wind turbines.By the end of 2025, DEIF had supported the upgrade of 782 wind turbines, resulting in a calculated annual CO₂e avoidance ofapproximately 55,000 tonnes. These reported CO₂e avoidance figures are based on realised wind turbine upgrades and documented AEP improvements. The calculations are performed internally by DEIF. The avoided emissions are not included in DEIF’s GHG Inventory.To support and validate the applied calculation methodology, DEIF has carried out a third-party study in collaboration with Joanneum Research Life Institute in Graz, Austria, calculating theGHG emission impact of upgrading 70 Senvion wind turbines located in Mojave, California* (see page 44).Outlook and expected developmentDEIF’s forecasts indicate that the cumulative number of upgraded wind turbines will continue to increase towards 2030, reachingapproximately 2,500 turbines. In 2026 we expect to upgrade 315 turbines.Recent years, we have worked on the high volume installed 2-3MW wind turbines. During 2026, a minimum of 250 of these wind turbine types will be upgraded, which is a veryimportant step towards our ambition of installing 3,000 wind turbines.As a result of the accumulated upgrades and the subsequent continued operation of the wind turbines, the annual CO₂e avoidance is expected to increase further and reachapproximately 200,000 tonnes by 2030**. This is part of DEIF’s long term ambition to enable emission reductions through its solutions.* While the CO₂e avoidance figures for the 70-turbine case are based on third-party calculations, the remaining fleet-level figures are calculated by DEIF using the same underlying principles but have not been individually third-party verified.** The figures beyond 2025 are forward looking and based on internal forecasts. They illustrate the expected development of climate impact enabled by DEIF’s solutions and are subject to uncertainties related to market development, customer uptake and future grid emission factors.Launching DEIF iE Convert seriesAs part of DEIF’s diversification strategy and tosupport the ongoing transition in the energysector, development of the advanced silicon carbide converter technology is nearingcompletion.Power converters are vital in the green energy transformation as they manage and control theconversion of electrical energy between different sources, notably renewable sources, batteriesand the electrical grid.The iE Convert series is designed for use in a wide range of applications, including marine propulsion, hybrid grids, industrial systems, and renewable energy storage. The use of siliconcarbide technology enables improved efficiency, scalability and technical performance compared to traditional converter designs.A key characteristic of the iE Convert series is its efficiency and compact, modular design.Compared with traditional converters, iE Convertcan reduce installation space by up to 60% and significantly lower overall weight, which isparticularly relevant in marine engine rooms, mobile power units, and Battery Energy Storage Systems (BESS).DEIF offers a complete control ecosystem, including cybersecure controllers, meters, and PLC integration through CODESYS. This enables customers to source both converter and control components from a single supplier, supportingstreamlined procurement, system integration, and long term maintenance.In 2025, we completed the production setup for the new converter series, and the associatedequipment and processes are now operational. During the year, demo projects were carried out in collaboration with several customers. Initial orders have already been placed for both marine andland-based applications.At the beginning of 2026, we expanded our development organisation in Graz, Austria, andwith a new subsidiary in Zagreb, Croatia. The new hubs strengthen our capabilities within power electronics and SiC converter technology, building on the strong technical foundation established through our collaboration with AVL and Wolfspeed and allowing DEIF to further grow and lead the development of the next generations of the Convert 900 and iE Convert 125 platforms.Close collaboration with BRGGeradoresBRG Geradores is a Brazilian manufacturer specialising in the production and installation of industrial gensets. In collaboration with DEIF, the company is now developing next generation power converters to support electrification of its rental fleet.In December 2025, representatives from BRG Geradores visited DEIF in Denmark to participate in testing of the new silicon carbide-based power converters. Following successful initial tests, further trials are scheduled to take place in Brazil in spring 2026 and DEIF will deliversolutions in 2026.The development of an optimal BESS system for the Brazilian market requires a comprehensive approach beyond merely installing batteries in containers. The partnership with DEIF has provided valuable insights and opportunities, allowing us to move ahead and adapt new technologies. Silvio de Oliveira, President of SDO group and BRG Geradores Chair of the Board“Developing DEIF iE Convert is a major undertaking for DEIF and underlines our ambition of winning in the fast-evolving market for advanced converter technology. Feedback from customers participating indicates that the converters are exceeding expectations for speed, efficiency and performance.” ChristianNielsen, GroupCEOpartnership founded on strong personal connections, while consistently prioritising professional commitment. Our solutions are designed to meet and exceed customer expectations. Strong and profitable growth in Marine InstrumentsFor nearly 70 years, DEIF has been a trusted global supplier of marine instruments for ship builders, system integrators and ship owners worldwide. Our portfolio includesinstruments for rudder angle systems, wind and weather monitoring and revolution counter systems – criticalcomponents for safe and efficient marine operations. In 2025, turnover in marine instruments grew by 27% compared to the previous year. This growth was driven primarily by our new line of digital instruments, which achieved high performance, while analogue instrumentsmaintained steady sales.Development and sales are anchored in strong competence hubs in Denmark and China, serving the global market. Allinstruments are manufactured at DEIF’s factory in Skive, Denmark, ensuring consistent quality, reliability and fast delivery.To ensure continued dedicated focus and further accelerate growth and market reach, Marine Instruments will be carved out as a separate entity in 2026.Most DEIF marine instruments are pre-approved byinternational classification societies, enabling quick delivery of both standard and customised instruments to meetdiverse customer needs.“I am impressed by the range and quality of DEIF’s marine instruments. Backed by a dedicated team in product development, sales, service and support, we see very good growth opportunities in the global market for both new ships and retrofits.” Jens Kiib, Managing Director,Marine InstrumentsExpansion of R&D activities Performance 2025In 2025, DEIF continued to prioritise innovation, allocating 18.0% of its sales turnover to R&D (2024: 17.8%). The R&D organisation grew significantly, with the team expanding from 139 employees in 2024 to 153 in 2025, representing roughly 20% of DEIF’s total workforce. Many of the newcolleagues brought specialised expertise in power electronics, strengthening our capabilities in developing new converter technology.DEIF’s R&D activities were driven from development hubs in Denmark, Austria, and Germany, where in-house teams collaborated closely with external consultants and research labs and universities. In 2025, developmentefforts focused on three strategic projects:1. Developing a new silicon carbide-based converter line2. Expanding the iE x50-series, a versatile product range for land-based and marine applicationsbuilt on DEIF’s Embedded Software Platform, DEP. This platform marks a decisive shift from standardised controllers to flexible, customisable solutions - empowering customers to manage complex energy systems with multiple sourcesand ensuring seamless, efficient energy transfer.3. Advancing wind turbine retrofit solutions, with our wind specialists working towards an overall target of being able to deliver a 2-3%improvement in Annual Energy Production.Next steps 2026Our top priority in R&D remains advancing convertertechnology, with a particular focus on the new Gen4silicon platform. This includes refining concepts, testing them across different applications, and bringing the first products to maturity in close collaboration with customers through marine and land based demo projects.In parallel, we continue developing DEIF’s Embedded Software Platform (DEP) with a modular architecture designed to enable rapid product customisation, while offering a broad portfolio of standard solutions.Looking ahead, the R&D team will intensify efforts to embed sustainability into the development of our products. This includes optimising processes andresource efficiency, more sustainable product designs and transparent impact documentation.With the first LCA (Life Cycle Assessment) conducted on DEIFs ML 300 in 2022-23, Master students from Aalborg University will carry out another LCA, this time on the iE250. Besides the product assessment, the students will investigate the organisational integration of LCA results in product development, directly supporting R&D’s efforts in identifying how environmental information can be actively used in the design process.New sustainability screening toolIn 2025, R&D developed a screening tool for assessment of sustainability aspects of all major projects before they commence and during the development process. Aligned with the Ecodesign for Sustainable Products Regulation(ESPR), the team prepared a sustainability assessmentscorecard covering key factors such as material selection, circularity, energy efficiency, maintenance, life-span and environmental impact. The screening tool will be pilottested in Q1 2026 and is expected to be fully integrated into the stage-gate development process in 2026.“We believe we have found a promising way to embed eco-design principles into our development process based on small, incremental steps and experiments that we evaluate regularly. This approach is manageable for our development teams and helps us gradually strengthen our sustainable development practices.” Integration technology specialists. Through this collaboration, Develop technical solutions for disassembly, 3. Develop new and more efficient methods for recovering critical raw materials from electronicState-of-the-art production set-upAll DEIF products are manufactured at our factory in Denmark. The factory is a showcase for energy-efficient production, bringing every process under one roof and leveraging a high degree of automation to ensure efficiency and quality.Key highlights in 2025:• Streamlined operations: We optimised andstabilised processes from sourcing to shipping, enabling delivery of most products within just seven workdays. Our delivery performance for the year was 93.9 in 2025 (2024: 94.6). The slight decrease in performance was due to adaption to new technology and new ways of working during the first months of 2025. In general, customers were not affected by this, and most delays werelimited to one day. In the last five months of the year, delivery performance was back on track, reaching 99.0%.• Futur e-ready converter production: Preparationfor a new converter line built on the principle of collaborative automation, where robots workalongside humans in a shared workspace to boost efficiency, safety and ergonomics. The first iEconverters are scheduled for commercial launch in 2026.• Upgrading packaging and shipping facilities:Traverse cranes have been installed to facilitate the handling of all products, including the heavier converters, with improved flow and ergonomics.• People: We enhanced competence and engagement by continuous dialogue andinvolvement of production team members and by recruiting production specialists. Health and safety remained central to every decision, ensuring thebest possible work environment.Next steps 2026Ramp-up of converter production is the top priority in 2026, including implementation of high safety standards for production and testing of converters. In addition, we will continue automation and pursue the ongoing effort of continuous improvement to maintain a delivery performance above 98%.Customer portalOnline customer portal gained tractionThe number of customers using the DEIF customerportal for product purchase tripled in 2025compared to the previous year, when the portal waslaunched. In 2025, 12% of the total turnover came from customers buying directly from the portal.“Customers around the world rely on our delivery performance and quality of every single product leaving DEIF’s factory. We take this responsibility seriously and our teams take pride in meeting targets for quality and delivery. The entire team is united in a strong commitment to find solutions for continuous improvement.” “Using the DEIF My Portal, I save significant time in my daily work. The portal is extremely user-friendly and convenient to work with. I can view photos, which help me make sure that I select the right product. I appreciate the support from the DEIF team responsible for the portal. I receive quick answers and helpful assistance. At SDM-Projects, we are very pleased with this initiative and with our excellent collaboration with DEIF.” Appendix 1: Value Chain EstimationThe following metrics have been calculated using indirect sourcesMetricsBasis for preparation Level of accuracy Actions for improved accuracy E1-6, 50Scope 1&2 GHG EmissionsCategory 2.2 Purchased Emissions from the heating purchased by DEIF to heat relevant offices.Data does not cover 100% and sometimes has been assumed- No actions plannedEnergy (District Heating)E1-6, 51Scope 3 GHG Emissions-Identification of high impact categories, which Activity data is very solid which represents most emissions, Data for procured materials is given in one list with material quantities and weights. These are then grouped can be improved.however there is also spend based data. Emission Factorsinto categories and sub-categories. The sub-categories are used to inform emission factor selection. The -LCA assisted improvement for key components. Category 3.1 Purchased cover different levels of granularity, DEIFs purchased material total mass of these categories is collected, and relevant emissions factors are applied.Goods and Servicesdata has been sorted into categories by DEIF however when -Expanding categories with weightsAdditionally, a list of spend on various broad categories is generated which are then mapped to different aggregating data there is always a trade off in accuracy.EXIOBASE categories.-Supplier collaboration in primary data Spend based factors are broad by nature.acquisitionDEIF uses one primary logistics provider, which delivers primary data. Additional transportation data is based on spend data from logistics providers outside of the main provider, is used to calculate spend based emissions. Subsidiary arranged product transport data is given in spend and converted to EUR accounting Medium level of accuracy. Primary data from primary provider. Category 3.4 & 3.9 for inflation and average conversation rates during the reporting year. While the primary logistics providerBut the data does not cover 100%. Emission factors are includ-Upstream and Downstream - No actions planned covers most shipping from TIER 1 suppliers to DEIF, some is arranged by the suppliers and therefore may be ing spend –based factors.Transportationmissing.Finally downstream emissions are calculated for cases where DEIF’s customers arrange for shipment them-selves based on destination location as well as provided shipping mode (flight, sea freight, etc.)Medium level of accuracy Data reported at the subsidiary level Category 3.5 Waste is assumed to be incomplete, however DEIF HQ data is report-- No actions planned, minor impact Data was collected from DEIF’s facilities in DK and reported on at the subsidiary level.generated in operationsed. Emission Factors for different waste treatments are accu-in subsidiariesrate; however, waste treatment is often assumption-based.Category 3.10 Processing For a small product range, the use of power tools is used to install the products. This is based on the as-Medium level of accuracy. Insight from service personnel, but- No actions planned, minor category of Sold Productssumed time used for the installation and the average power usage of the tool used.no measurements on site.(0,09% - 2024)Data basis: Average energy use data for products, assumed -Assessment if the source of energy used to run Lifetime energy consumption of products sold is calculated as the 24/7 operation at average power con-Category 3.11 Use of average running time, assumed geographic location, marine the products can be more accurate.sumption according to the product technical data sheet. This consumption is then multiplied by total product Sold Productsproducts: diesel emission factor, other products: national grid -Potential collaboration with customers to obtain sales in the reporting year.mix.primary data.Global average used, as location of end-of-life treatment is The bill of materials was separated into broad categories aligned with emissions factors from the US EPA unknown. Waste handling procedures are assumed and co (i.e., plastics, mixed metals, electronics, etc.) and then an average End-of-Life emissions per product sold Category 3.12 End-of Life uld be strengthened by incorporating real world data. Data - No actions plannedvalue was created. This was then multiplied by the number of sold products in the reporting year.of Productcoverage for the bill of materials could be strengthened and components should be included. Low level of control overData coverage may be missing for sold components by DEIF in the reporting years. actual end-of-life treatment data.Appendix 2: ESG Accounting PrinciplesDefinitionTotal emissions of DEIF operations calculated according to the guidelines of GHG protocol. The delimitation runs according to an operational control, which means that all emission Total GHG emissions (Scope 1-3)Sum of Scope 1, 2, and 3 emission calculations.sources over which DEIF as DEIF has operational control are included in the climateaccounts.Scope 1Fugitive Emissions (Refrigerant Leaks) (1.3): Emissions from refrigerants used in air Fugitive Emissions (Refrigerant Leaks): Contractors have provided bills which include the amount of refrigerant replaced during Purchased Energy - Electricity: Included in the subsidiaries data reporting file, DEIF DK data collected from utility bills separately. Electricity use associated with electric vehicles from total distances for EV collected for mobile combustion, converted to kWh with Scope 2: Indirect emissions associated with the purchased energy used by the company, a ratio of 0,19 kWh/km.such as electricity or heat.Market-based calculations use residual mix (no green contract) emissions factors. DEIF has a PPA which, in combination with GOs, Calculated for DK and all our subsidiaries.covers 100% of consumption in Skive.Scope 2 (market based)Purchased Energy - Electricity: Emissions coming from the electricity purchased by DEIF, Purchased Energy - District Heating: Collected utility bills, otherwise reported consumption in energy units (mWh) from both at subsidiaries and in the headquarters.subsidiaries.Purchased Energy - District Heating: Emissions coming from the heating purchased by District heating consumption at TKT is based on estimated activity from spend in comparable jurisdictions. (i.e., 1000DKK was DEIF to heat relevant offices.converted to xxx kWh of energy using costs from Silkeborg)District heating consumption for Silkeborg was estimated in 2025 based on 2024 consumption. Emission factors are mostly activity-based and come from DEFRA.Scope 3: Other indirect emissions arising from the company’s activities but beyond its Scope 3Sum of all GHG emissions from Scope 3 categories.direct control, such as transport of products, raw materials and waste management.Data for procured materials is given in one list with material quantities and weights. These are then grouped into categoriesand sub-categories by the procurement team at DEIF. The sub-categories are used to inform emission factor selection. Nordic Sustainability then collects the total mass of these categories and applies relevant emissions factors informed by DEIF’s experts. Finance otherwise provides a list of spend on various broad categories which are then mapped to different EXIOBASE categories. Emissions coming from both physical goods and services bought by DEIF. PurchasedPurchased Goods Water consumption is estimated for subsidiaries missing data using subsidiary FTE numbers and an average annual water Goods and Services is divided into goods and services related to production and goods and Services (3.1)consumption per office employee of 12m3.and services related to fixed costs (incl. subsidiaries).Multiple emission factors have been used for the different categories and sub-categories. EF for this category are both activity & spend based and have been taken from relevant databases from both EXIOBASE and ECOINVENT. Where possible, EFs are assessed for their accuracy and updated, if necessary. In 2025 the EF for PCBs was updated, and the GHG inventory was adjusted accordingly, also for 2024 and 2023. UK Gov reporting factors were used for water consumption.Emissions coming from physical assets procured by DEIF in the reporting year. This category includes emissions from the manufacturing of physical assets such as machinery, The only relevant emission source in this category is DEIF’s construction of a new building at Jattrupvej 8. Construction is expected buildings, and equipment.to complete in 2026; activities occurring in 2025 are included in this inventory.This category is excluded from DEIF’s science-based target due to exceptional emissions The Bygma KlimaData report uses EPD-based emission factors for building materials, covering life cycle modules A1-A3 (rawCapital Goods (3.2)in the base year. Because of this, the methodology for allocating activities betweenmaterials, transport to factory, manufacturing), C3 (waste processing) and C4 (disposal). EPDs are split by quality: 8% product-categories 3.1 and 3.2 must remain fixed. DEIF cannot add new asset types (for example, specific, 83% industry-average, 7% generic, and 2% without EPD data. Transport emissions are reported separately (867 kg CO₂ batches of office computers) into this category going forward unless they were alsoeq.). Data is sourced from Byggebasen, where suppliers upload their own documentation.included in the base year.EnvironmentDescriptionDefinitionExtraction, production, and transportation of fuels and energy purchased or acquired by DEIF, not already accounted for in scope 1 or scope 2, including:•Upstream emissions of purchased fuels (extraction, production, and transportation of fuels consumed by DEIFData from scope 1 and 2 is used directly within this category, so there is no need for additional data collection.Fuel and Energy (3.3)•Upstream emissions of purchased electricity (extraction, production, and transportation The emission factors used are per country level for electricity. The emission factor for both upstream emissions and T&D losses are of fuels consumed in the generation of electricity, steam, heating, and coolingfrom the IEA. For mobile combustion, DEFRA emissions factors are used.consumed by DEIF•Transmission and distribution (T&D) losses (generation of electricity, steam, heating and cooling that is consumed (i.e., lost) in a T&D system) – reported by end userData has been collected from several sources. Primarily, data has been collected from Blue Water Shipping (BWS) which provides Upstream: Scope 1&2 emissions of transportation and distribution providers that occur emissions calculations themselves based on the GHG protocol. After that, spend based data from logistics providers outside ofduring use of vehicles and facilities incl:BWS is used to calculate spend based emissions. Subsidiary arranged product transport data is given in spend and converted to Transportation•Transportation of goods from tier 1 suppliers EUR accounting for inflation and average conversation rates during the reporting year. Shipping from TEIR 1 suppliers to DEIF has (Upstream & Downstream) •DEIF purchased transport servicesbeen estimated based on procurement data and the location of the supplier.(3.4 & 3.9)Downstream: The scope 1 and scope 2 emissions of transportation providers, distributors, Finally downstream emissions are calculated for cases where DEIF’s customers arrange for shipment themselves based on and retailers that occur during use of vehicles and facilities when DEIF is not paying for it destination location as well as provided shipping mode (flight, sea freight, etc.)(e.g., from energy use).BWS data provides GHG data directly and therefore no emissions factors are used on DEIF’s side. The emission factor for activity-based data (data in km) from DEIF’s downstream shipping is from DEFRA. Emission factors for Spend-based data is from EXIOBASE. Data was collected from DEIF’s facilities in DK and reported on at the subsidiary level. Note that this also includes wastewater which Disposal and treatment of waste generated in the reporting company’s operations in is based on total water consumption values in 3.1.Waste Generatedthe reporting year (in facilities not owned or controlled by the reporting company) and According to the GHG protocol, the emissions from waste are only the actual emissions from the waste treatment processes, no transportation of waste-to-waste management (optional).substituting emissions of energy generation or recycled materials are allowed. The emission factor for waste generation are from the US EPA.Transportation of employees for business-related activities during the reporting year (in vehicles not owned or operated by the reporting company).All spend based data was converted to EUR accounting for the average yearly exchange rate and inflation. Travel Agency carbon Data was collected from: data was taken directly and UK Gov factors are applied directly by these companies. It is possible that some travel paid for outside •Travel Agencyof Egencia was not reported however this would only represent a small fraction of overall category emissions.•Activity-based travel in Denmark mostly relating to car trafficBusiness Travel The emission factor is sourced from DEFRA; UK Government GHG Conversion Factors for Company Reporting. The emission factor •Spend-based costs for travel booked in Denmark outside of Egencia is given in kg CO2/passenger km. The fuel type of cars is unknown and therefore an unknown fuel type emission factor is also•Spend-based costs for travel booked at DEIF’s international subsidiarieschosen, this represents an average of UK car fleet which should be representative of EU countries. However, may not fully accuracy •Activity-based travel at DEIF’s international subsidiaries mostly relating to car trafficrepresent the global car fleet. Importantly however most emissions in this category stem from flights.•Activity-based travel at DEIF’s international subsidiaries with detailed origin and destination airportsSurvey was sent out to all employees at DEIF DK in 2023.The results of the survey (response rate of 57%) were scaled up to the full number of employees in both 2022, 2023, 2024 and 2025. Employee commuting at subsidiaries in 2025 were collected on a Transportation of employees between their homes and their worksites during the reporting Employee Commuting subsidiary level assumed to be complete.year (in vehicles not owned or operated by the reporting company).The emission factors are mostly sourced from DEFRA; UK Government GHG Conversion Factors for Company Reporting, 2024. The emission factor is given in kg CO2/passenger km and therefore the emission factor has been divided by 2 if people are sharing cars.Operation of assets that are leased by the reporting company in the reporting year and When DEIF leases a new car, the emissions associated with the manufacturing of this car have been added, as an optional not already included in the reporting company’s scope 1 or scope 2 inventories. DEIFemissions category, to DEIF’s inventory. If DEIF leases a used asset no emissions are added.Upstream Leased Assets has chosen to include optional emissions from this category pertaining to the life cycle Newly leased assets (company cars) are included in this category. This category only includes leased assets, which have (Optional Emissions)emissions associated with manufacturing of these leased assets.commenced their leasing period in the reporting year. An average weight per car is assumed depending on the fuel type and Importantly, these emissions care not a part of DEIF’s SBTs nor can they be reported on as emissions factors are chosen correspondingly. . The emission factors are sourced from Ecoinvent.a part of DEIF’s total inventory but must be reported on separately.The scope 1 and scope 2 emissions of downstream companies that occur during processing (e.g., from energy use). While DEIF’s products generally do not require energy to be added to the product which they control (e.g., a generator or wind turbine) however following Processing of Sold ProductsThe emission factors are from IEA corresponding to the global average electricity emissions factor. feedback from SBTi during the validation process a very small amount of emissions wasadded corresponding to the energy consumption of an electric drill used to screw in a product.DefinitionLifetime energy consumption of products sold is calculated as the 24/7 operation at average power consumption according to the product technical data sheet. This consumption is then multiplied by total component sales in the reporting year.To calculate GHG emissions from the product lifetime energy consumption, we used a composite emissions The direct use-phase emissions of sold products over their expected lifetime (scope 1 and scope 2 emissions factor derived from the countries to which DEIF shipments were sold to. It is known that this may not be the Use of Sold Productsof end users that occur from the use of: products that directly consume energy during use; fuels andmost accurate approach and highly recommended to perform an investigation into the power source of DEIF’s feedstocks etc.).products.The emission factors are sourced from the IEA for purchasing country which DEIF products are sold to. As these products may end up elsewhere, or be powered by sources other than national grids, this is considered to be an estimate while more specific data is gathered.End of LifeElectricity usage is documented in different ways, depending on the location. While at headquarters in Skive Energy Usage ElectricityDEIF has various local meter readings for the subsidiaries it is a mix of invoices and a cost embedded in the Sum of meter readings and invoiced KWh for all of DEIFs locations.leasing of the respective premises.When a sales order is invoiced in DEIF, a Customer “Sub-segment” is added to the order, explaining what the order is used for (these can e.g., be seen in CRM). This Sub-segment forms the basis for our Turnover distribution and is categorised as shown below:Turnover share of products sold to •Green: "Wind Power sales" and "Hybrid/Microgrid" are classified as green turnoverrenewable applications & to •Retrofit & Upgrade: All the "Refit"-segments are classified as "Retrofit & Upgrade"improve efficiency•Passive: The rest (incl. sales to Practek ("Electronic Manufacturing Services") is classified as "Passive" - inclusive fossil fuel reduction(power management)Amount of waste generated (DK): All our waste in Skive is collected and weighted by the supplier Marius Pedersen.Waste generatedThere are several fractions of wastes (food waste, cardboard, etc.) and each of them is weighted by the Sum of tonnage of waste generated.supplier. This allows to register the total amount of waste generated by month and by year. All data is provided by Marius Pedersen and available on their online platform.Percentage of waste recycled (DK):Waste for recyclingThe percentage of waste recycled is registered by month and by year. All data is provided by Marius Share of waste fractions, which enter recycling streams. Pedersen and available on their online platform.SocialDescriptionDefinitionIs calculated and reported every month. The number defined is the status of headcount as per 31.12.2025), which is based on data from the HR-system (People First).Excluded: interns (from either schools or “the job centre in the municipality”), young workers, student Calculation:Number of Employeesworkers, maternity covers, temporary hires/employments (employed for a year or less), seasonal workers, Number of new hires in the month of December deducted from the number of exits in December and added to consultants.Novembers total no of headcounts.Included: all full and part time employees, trainees, employees on “flexible jobconditions”, employees who throughout the year has either been on maternity leave or short/long term sick leave.The ratio is defined as male managers in percentage of total number of managers and female managers in per-centage of total number of managers = 100% . SocialDescriptionDefinitionThe split between genders in total workforce is measured by headcount based on data from the HR system The ratio is defined as male employees in percentage of total no. of employees and female employees in per-M/F employeesand reported as the percentage of women and men.centage of total number of employees = 100%.The split between genders are related to the recruitments conducted and only covers the recruited people M/F recruited The ratio is defined as no of new hires of females and males.who started in the company and its subsidiaries in the reporting year.Employee Engagement Survey is conducted every second year and was implemented back in 2008. The Engagement in 2025 is calculated as an average of two questions:Employee engagement survey is run by an external provider, who ensures that all data and survey results remain anonymous and are 1.I feel motivated in my job and.treated confidentially.2.I would recommend others to seek employment at DEIF.Employee turnover The data is basesd on number of days of sick leave; covering parttime and full-time sick leave. Sickleave Sick leave totalNumber of sick days / number of employees / number of working days * 100 = sick leave in % pr. Month. related to sick children or §56 is not included in the data.The number of employees with another native language than Danish is counted based on a personal evaluation as we do not register nationality in our HR system. A list with all employees are made and HR goes Other native language than Danishthrough the list and mark the people with another native language than Danish. The evaluation is only made for employees in Denmark.People hired on special conditions - either in regards to number of hours and/or with special working Flexjobconditions i.e. avoiding heavy lifting or too complex tasks. A special registration is made in the HR system Number of people on a “flex-job” contract.when hired on a “flex-job”.We operate with 3 different categories of learning positions:•Interns (as students); are typically “working on a project” in DEIF as part of their study. They are only in DEIF for a limited period and do not get a contract•Interns (citizens from the municipality); who are paid by the municipality, and “working” in DEIF for a Learning positionsperiod in order to evaluate, which job possibilies and considerations that need to be in place for them to succesfully enter a specific job again - either full or parttime.•Trainees/Apprentices: Are hired on a training contract with DEIF and will be paid during the training periodNear-accidents & Work accidents Near-accidents and work accidents with sick leave are reported to the Health, Safety, and Environment group with sick leaveand if an accident occur, it will be registered in the Safety Corrective & Preventative Actions system anddiscussed. For each situation improvement areas are defined in order to avoid similiar situations in the future. Number of near-accidents & Number of work accidents with sick leaveHSE has meetings 6 times per year in order to follow up on the improvements and accidents in general (if any).GovernanceDescriptionDefinitionM/F in executive managementIs calculated as the ratio between male and female among the members of executive management.The ratio is defined as no of male managers and no of female managers.Is a summarized calculation of the number of reports in the whistle-blower system. Calculation done by Legal Whistle-blower reports as they are the only ones having access to the system. At present, the whistle-blower scheme only applies to the employees of DEIF.Appendix 4: GlossaryA AEP Annual Energy Production AI Artificial Intelligence AR Application Requirement A/SPublic Limited Company BBESS Battery Energy Storage System BP Basis for Preparation (ESRS 2) B2B Business-to-BusinessC CoC Code of Conduct CRA Cyber Resilience Act CRM Customer Relationship Management Corporate Sustainability Due Diligence CSDDD DirectiveCSR Corporate Social Responsibility CSRD Corporate Sustainability Reporting Directive CVR Central Company Register (in Denmark) D DEP DEIF’s Embedded Software Platform DI Danish Industry DEFRA Department for Environment, Food & Rural Affairs,a UK government departmentDMADouble Materiality AssessmentDNVDet Norske VeritasEEBIT Earnings Before Interest, Taxes Earnings Before Interest, Taxes, Depreciation, aEBITDA AmortisationEDD Employee Development Dialogue ENEA Europe, Near-East, Africa ESG Environment, Social, and Governance ESRS European Sustainability Reporting Standards ESS Employee Satisfaction Survey E-WasteElectronic WasteF FIFO First-In, First-Out FSC Forest Stewardship Council FTE Full Time Employee G GDPR General Data Protection RegulationGHG Greenhouse Gas GO Guarentees of Origin H HR Human Resources HQ Headquarter HSE Health, Safety and EnvironmentIIACS International Association of Classification SocieIC Integrated CircuitsIEA International Energy Agency IMEAA India, Middle-East, Anglo-Africa IMO International Maritime OrganisationIRO Impacts, Risks, and Opportunities ISO International Organisation for StandardisationKkWhKilowatt hour LLCA Life Cycle Assessment L&D Leadership and Development M M/FMale/FemaleMWMegawattN NPS Net Promoter ScoreO OEM Original Equipment Manufacturer P PCB(A) Printed Circuit Board (Assembly)PLC Programmable Logic ControllerPPA Power Purchase AgreementPV PhotovoltaicRR&D Research & Development S SAL Silicone Austria LabSBTi Science Based Target InitiativeSTEM Science, Technology, Engineering, and MathematicsSVP Senior Vice PresidentT tCO2e Tonnes of Carbon Dioxide EquivalentUUNUnited NationsUS EPA United States Environmental Protection AgencyV VC Value Chain VP Vice President Risk management DEIF works with a risk management framework toidentify, assess, prioritise and respond to major risksthat can impact our business and strategy.Major risks are selected and evaluated on acontinuous basis by the Executive Management Team, based on the possible impact and the likelihood of the risks. Concrete actions andinitiatives are initiated by the Executive Management to mitigate risks with a relatively high impact and likelihood.The Board of Directors evaluates the risk matrix and related initiatives on an ongoing basis. Currently,DEIF’s overall risk management process does not reflect the Impacts, Risks, and Opportunities (IROs) identified and assessed in the Double MaterialityAssessment (DMA)Risk descriptionCyberattacksDEIF, like other organisations with a globalfootprint and presence, is exposed to the risk of cyberattacks.Risk monitoring and mitigationDEIF is at a good level and well organised to prevent cyberattacks. We are compliant with the NIS2 Directive requirements and have achieved ISO 27001 certification in 2025. Employees receive regular training,and internal tests are conducted to assess employees’ awareness of cyber attack risks. DEIF’s new iE-series offers state-of-the-artcybersecurity. We will continue to minimize the risk of attacks and the impact of potential attacks.DEIF will complete a detailed climate transition plan in 2026, with clear responsibilities, KPIs, and timelines toward 2030. The plan will detail decarbonisation initiatives across inventory categories. Initial projections indicate that achieving the target will require an ambitious effort. The category Purchased Goods and Services hasreceived special attention in 2025. By the end of 2025, we were able to source around 95% of PCBs (based on weight) from manufacturers powered by 100% renewable energy. We will continue to focus on pursuing Scope 3 reductions in close cooperation with our suppliers. Other categories to be addressed include Use of Sold Products, Transportation of Goods, and Business Travel.Failure to achieve climate commitmentDEIF’s target is a 42% carbon emission reduc-tion, Scope 1-3, by 2030 compared to the 2023 baseline. The majority of the reductions comes from Scope 3, upstream, from the production of PCBs and other electronic components. DEIF is dependent on sub-suppliers to bring down the Scope 3 emissions and the green transition to take place worldwide to reduce the energy used for our products.Microchip shortage in the global market The increasing digitalisation puts pressureon the availability of microchips and other electronic components.As a medium-sized player in the global marketplace, DEIF has to hedge against threats to its supply chain. By building close relationships with suppliers of PCBs, ICs, semiconductors, and other vital components,DEIF sustains a resilient supply chain. Nearshoring is an importantstrategy to avoid bottlenecks in global logistics. We will also investigate a new initiative regarding PCB Circular Economy (CIRCUIT).The DEIF Board of Directors and Executive Management closelymonitor geopolitical risks to be able to react fast to changes. DEIF’sstrategy of a global and regionalised presence enhances resilience to geopolitical unrest. We will continue to closely monitor and manage geopolitical risks.Geopolitical risks The risk of geopolitical disruption is growing, threatening both downstream trade and upstream supply chains.Financial risksCurrency risksDEIF operates internationally and the exchange rate development in foreign currencies impacts theresults, cash flows and equity of the company. We systematically monitor our net currency exposures. Management considers the total exposure to be limited and well diversified across currencies.Therefore, currency hedging is not applied. DEIF may, however, apply selective and temporaryhedging in situations with material and/or identified exposures. The largest individual exposures areprimarily related to Yuan Renmimbi.Credit risksCustomer credit lines are systematically monitored, and credit is given based on internally approvedcredit guidelines and limits. Credit insurance is used in relevant markets and towards selected largercustomers. DEIF does not have risks related to singlecustomers that can significantly impact the company’s combined financial position.Interest risksModerate changes in the interest rate levels do not have a material impact on earnings. The interest raterisk is partially hedged by using financial instruments(interest SWAP).Human Rights Due DiligenceWhile the DEIF Code of Conduct has served as a platform for responsible business practices across our organisation and the supply chain since itsintroduction more than a decade ago, there is a need for a more formalised approach to human rights due diligence across the entire value chain. The need for increased focus has been driven not only by thefindings of the DMA, but also by external audits and customer requirements, as well as an increasinginternational focus on human rights violations in the current global political climate.Even though DEIF is not currently covered by the Corporate Sustainability Due Diligence Directive(CSDDD), we intend to use the directive’s framework to strengthen our approach. This also includes assessing business relationships that are not subject to international sanctions.In 2025, DEIF participated in the UN Business & Human Rights Accelerator Programme. Through this programme, we carried out a comprehensive human rights risk assessment for our own workforce,identified salient human rights issues and began todevelop targeted action plans.The risk assessment for own workforce revealed different human rights issues. Some have beenaddressed directly, while others will require an action plan. Examples of salient human rights issues include:• Topics of Equity, Inclusion, and the risk of Discrimination in Recruitment (global)• Issues with noise levels/visual disturbance and the overall working conditions at the larger open offices (Denmark)• Electrical safety regarding production and installation of converters (factory in Denmark)Due to the need for heightened human rights due diligence given several global conflicts, DEIF has alsoinitiated development of a process to address human rights and corruption risks and potential violationsrelated to the application of DEIF’s products and the sale to customers.This process demands higher vigilance around where products are sold either directly or indirectly through intermediaries. This process also covers corruptionand sanctions.DEIF also established a Human Rights committee, which is a cross functional working group tasked torun human rights risk assessments, identify process improvements, and implementation of these changes into the organisation.Next stepsIn 2026, work will commence to actively address some of the salient human rights issues discovered inthe risk assessment conducted for own workforce.For instance, recruiting managers will receive biastraining, and we will set minimum standards for paid parental leave across the entire organisation.Furthermore, we will define a human rights policy and conduct human rights risk assessments for both upstream and downstream activities. Also, we will be assessing DEIF’s current grievance mechanisms forpotentially needed updates and changes. (See also “Grievance Mechanisms” on page 58)Customer focused due diligence process System to flag companies/countries/industries Automatic matching with customer database Active orders are paused/ new orders not confirmed Customer is contacted Customer feedback is assessed If positive If negative Executive Potential follow-up management and plan agreed sales is informed Sales is informed & CEO sends response orders are resumed to customer Toke FossChair and ownerNot independentBoard member and chair since 2021Other positions•Chair of the board in FOSSFLAKES A/S and FJV Foss Holding A/S•Board member in DI EnergiExperience/core competences•As CEO in DEIF 1986-2021: Transformed the company from a small supplier of electrical instruments to a global techno-logy leader within the green energy trans-formation•Extensive knowledge from Board member-ships in Skive Geotermi, EnergifondenSkive, GreenLab Skive, DI Energi and Regeringens Klimapartnerskab•Extensive knowledge about the greenenergy transformationBirgitte Brinch MadsenDeputy chairIndependentBoard member since 2015 Deputy chair since 2021Other positions•Chair of the Board in Delpro A/S, RUM A/S•Deputy Chair of the Board in Danske Invest funds•Board member and chair of the Audit andsustainability committee in Metroselskabet I/S•Board member in Hovedstadens Letbane I/S•Non-executive Director and member of the Audit Committee and Renumeration Comittee in John Wood plc. and Chair of Safety andSustainability committeeExperience/core competences•Extensive, global leadership experience within the energy sector from positions with COWI and AP Møller Maersk•Board and Non-Executive experience inlisted as well as privately held and public own companies within energy and infra-structure•Knowledge and understanding of energy transition, energy efficiency and green energy technologies•Key contributor in ESG direction and target setting as a member of the Sustainabilitycommittee in John Wood Plc.Frederik Alexander Buciek Foss Board member and ownerNot independentBoard member since 2017Other positions•Strategy Business Partner in Ørsted A/S•Member of the DEIF Sustainability CommitteeExperience/core competences•Finance Business Partnering •Performance Management•Strategic transformational projects •Energy markets – commercial insights Valdemar FossBoard member and ownerNot independentBoard member since 2021Other positions•Network Operations Center Specialist in Spirii ApsExperience/core competences•Engineering and technical specialist within green energy sector•Extensive experience and technical ex-pertise in e-mobility sector, with focus on charging infrastructure•Technical knowledge about power systems and energy management systemsMalene Richter Christensen Board memberIndependentBoard member since 2021Other positions•CFO of Telenor Denmark A/S•Chair of the board in MVNO Systems A/S•Chair of the board in TN Finance A/S•Member of the DEIF Sustainability CommitteeExperience/core competences•Executive experience combining strategic proficiency and commercial acumen across a range of industries•Extensive M&A experience and deepinvolvement in the energy sector. Expertise spans Strategy, CFO, implementation ofCSRD, ESG, EU Taxonomy, finance andbusiness transformation•Proven ability to lead complex initiatives and drive value creation•Experienced non-executive board member, with a deep focus on governance,delivering value, and navigating complex organisational and sectoral landscapesHumphrey LauBoard memberIndependentBoard member since 2023Other positions•Group CEO DESMI A/S •Member of the Board in Kamstrup A/SExperience/core competences•International management•Global P&L responsibilities •Management of industrial manufacturing companies within Process industry, Phar- maceuticals- and Biotechnology companies•Industrial B2B sales & marketing•R&D and business development of industrial sustainable solutionsOle RavnborgBoard MemberEmployee Representative Board member since 2007Other positions•Hardware Designer in DEIF A/SExperience/core competences•Extensive experience in hardware design and development, including productarchitecture•Technical knowledge about the entire product development process, includingtest strategy at DEIF•Experience as an auditor within quality and environmental management•Knowledge about the impact and integra-tion of sustainability on component/product levelJacob DanielsenBoard MemberEmployee Representative Board member since 2019Other positions•Product Business Manager, New Energy and Storage in DEIF A/S•Team lead, New Energy Segment in DEIF A/SExperience/core competences•Controls specialist within Hybrid, Wind, Energy Storage, PV and Fuel Cells.•Technical and commercial knowledge in Energy management, future trends and innovation. Product specification,development and market launchGitte JespersenBoard MemberEmployee Representative Board member since 2023Other positions•Senior R&D Manager - Documentation &Sustainability Integration in DEIF A/S•Member of the DEIF Works CouncilExperience/core competences•Extensive experience within peoplemanagement, development processes and project management•Knowledge of ESG and the integration of sustainability initiatives into R&D activitiesChristian NielsenGroup CEO DEIF since 1996 Executive Management since 2002Chanette Nyrup OksborgExecutive Vice PresidentProduct, Technology & Operation DEIF since 2014Executive Management since 2014Mads Almstrand HenriksenExecutive Vice PresidentFinance, Legal & IT DEIF since 2025Executive Management since 2025Marjanne GrønhøjExecutive Vice PresidentHR, Communication & Sustainability DEIF since 2015Executive Management since 2015Organisational change 2026 To support our ambitions and significantly grow our business, we implemented organisational changeseffective from 15 April 2026. As part of these changes, we streamlined the Executive Management team from seven to four members to enable faster decision mak-ing, strengthen accountability, and increase agility when responding to change.We extended the responsibilities of the four regional managers, giving them a more central role in the or-ganisation, while also creating a stronger and broadermarketing function with focus on commercial excellence, channel partners and strategic business development.These changes will strengthen our sales capabilities and global alignment. We also reinforced delivery capacitywithin our two strategic projects – Power Converters andDEIF Embedded Platform (DEP).The resulting change in gender balance across manage-ment positions is not reflected in the figures presented throughout the report. To support comparability with prior years, the primary 2025 overviews and figures havebeen retained unchanged.Integration of sustainability related performance in incentive schemesIncentive schemes are only offered to subsidiary managers and selected people in the subsidiaries. The incentives are currentlyonly related to sales growth and the strategy and ambitions of the subsidiaries/DEIF. Consequently, there are no incentive schemes linked to sustainability matters for any supervisory bodies. ESG Governance The governance structure of our sustainability work was originally designed to be a dual operating model, which would allow a high level of involvement across the organisation and a dynamic idea generationprocess.The line organisation is responsible for the implementation and reporting on ESG topics, whereas the network organisation should involve employees in the sustainability work on a project basis, organised in different communities and project groups.While we operated with this model the first two years after the establishment of the new structure, we have not had any sustainability projects in 2025 thatactively engaged DEIFs employees.This is unfortunate and we are planning to re-start the work with the project-based organisation on anas-needed basis.The governance structure is implemented step-by-step, evolving organically as more functional areas work with ESG considerations.Board of Directors: approves overall ESG ambitions, key policies and significant targets. The Board has set up a dedicated Sustainability Committee thatprovides guidance and inspiration for the sustainability work and receives updates on the important projects to facilitate sustainability decisions on the Board.Executive management: ensures integration of sustainability into strategy and business priorities. Core sustainability team: prepares the overall sustainability roadmap, and acts as coordinator andfacilitator – execution remains with the lineorganisation.The team is also overall responsible for cross-functional ESG related projects and has establishedlong-term working groups and permanent committees for CSRD compliance, decarbonisation efforts as well as human rights due diligence. The core team meets once a month with the CEO to discuss progress,results and new projects.Corporate functions: prepare and implement actionplans and provide input to reporting system.Furthermore, they take part in a variety of different project groups to ensure ownership in the lineorganisation.Sustainability ambassadors in subsidiaries: ensure local engagement and mutual inspiration.Human Rights Committee: the working group is tasked to run human rights risk assessments, identify process improvements, and implementation of these changes into the organisation. Members of thecommittee: Sustainability, HR, Legal, Health & Safety, Purchase, and Sales.Community-based network of project groups:should drive or participate in sustainability-related projects (not shown in figure). It is expected that these groups will only exist for the duration of the specific projects. After that, they will be dissolved as the results are embedded into the line organisation.HighlightsofDEIF’sworkwithsustainability–2025&2026 In 2025, sustainability work at DEIF focused on three main activities: deepening understanding of decarbonisation levers, training and encouraging people to communicateclearly and consistently about our sustainability efforts and taking the first steps to mature DEIFs work with humanrights due diligence.At DEIF, we believe in sharing and exchanging knowledge beyond the walls of our company. We have thereforeengaged with both customers, suppliers, as well as organisations in our network to share expertise andlearnings to ensure that we can support each other in accelerating progress.Since the approval of DEIF’s SBTs, we have prepared the ground for decarbonisation activities by initiating the first emission reduction projects for Scope 3 and progressing further with emission reductions in Scope 1 and 2. The first results will materialise in 2026, when the changes in PCBsuppliers take effect. These changes will be reflected in the GHG inventory 2026 as well as a decarbonisation plan for DEIF towards the near-term target in 2030.Throughout 2025, we strengthened our work with human rights, both in relation to our own workforce and in ourengagement with customers. In the social area westrengthened the focus on well-being and stressprevention and followed up on our employee’s satisfactionthrough survey and dialogue meetings. Looking ahead wewill take steps to further improve our human rightscapabilities and governance – and pay special attention totargets for minorities.The following points are a selection of key projects ordiscoveries. Pages indicate where projects are described more in depth:General/Corporate Governance• Session contextualising climate and human rights withsubsidiary managers to increase understanding of whythese issues are material for DEIF• Establishment of a Human Rights Committee, formalising the work with human rights. Conducting a human rights risk assessment for own workforce, resulting in identification of salient human rightsissues. Drafting a customer focused due diligence process, which also covers corruption and sanctions. (p. 26)Environment• Near-term decarbonisation project: Focus on purchased goods and services to inform suppliercollaboration for the top 10 component categories. (p. 42)• Transition to PCB manufacturers producing with a highshare of renewable electricity. By the end of 2025, production of 95% of PCBs were moved tomanufacturers with 100% renewable electricity supply. (p.41)• Project with Joanneum Research Institute in Graz,Austria, to calculate the amount of GHG emissionsavings for a specific wind turbine retrofit project. (p. 44)• Initiation of the creation of a sustainability scorecard for product development. (p.21)• Decision by Executive Management to implement an energy plan for DEIF’s headquarter, integrating batterystorage to better utilise installed solar capacity andto help balance the grid. (p.42)• Application for installing a refurbished wind turbine on our site in Skive. This included a noise assessments, visual analyses, and dialogue with relevantstakeholders. DEIF is awaiting a decision from the municipality. (p.41)• DEIF Headquarters purchased a Power PurchaseAgreement (PPA), securing electricity from wind powerfor its operation. (p.41)Social• Results from interviews with subsidiary managers on HR practices were consolidated and revealed areas forimprovement of minimum standards across the company.• Dissemmination of a well-being platform and a stress-guide to raise awareness on stress prevention.• Conducting and following up on the Employee Satisfaction Survey; Roundtable meetings with employees to further unfold the understanding of whatis working well and what can be improved (p. 50)• Dissemination of a Sustainability CommunicationPlaybook to encourage all employees to communicate consistently and responsibly about sustainability, tobuild trust and enhance our reputation. (p.56) Next steps for 2026 • Establishing frameworks for working with human rights: a Human Rights policy, a human rights risk assessment on downstream and upstreamactivities, and a review of DEIF’s grievancemechanisms. Also, a human rights risk screening system will be established. (p.26)• A new DMA based on the amended ESRS standards will be conducted in Q3 & Q4 2026.• Near-term decarbonisation plan finalised. (p.42) • Continue the investigation for establishing a wind turbine on our site in Skive• Life Cycle Assessment will be conducted on one of DEIFs newer products, iE 250. (p.21)• Initiation of CIRCUIT project in consortium with Danish Technological Institute and other players along thePCB value chain. The goal of this 2-year project is to identify circular strategies for PCB(A) design and production. (p.21)• Diversity and Bias training for all managers involved inrecruitment. (p.53)• A couple of the activities under the social ambition have been postponed to 2026/ 2027: work on programme for life-embracing employment andestablishment of targets for minorities.• Creation of minimum standards for all DEIF locations on topics like parental leave.Generalinformation DEIF’s sustainability reporting supportslong-term value creation by managing supply chain risks, strengthening customer trust and ensuring compliance with increasing regulatory and customer requirements. The sustainability statements provide transparency on howidentified impacts, risks and opportunities are integrated into DEIF’s governance andoperations.The sustainability statements are prepared to depict DEIF’s strategies, policies, targets,activities and results within environment, social and governance. We strive to provide relevant and accurate information that describes theImpacts, Risks and Opportunities (IROs) associated with DEIF’s business.The structure and content of the sustainability statements reflect the European Sustainability Reporting Standards and the Double Materiality Assessment carried out in 2023 and isreassessed on a yearly basis.Due to the changes introduced by the Omnibus package, DEIF is not obliged to report according to CSRD. Nonetheless, DEIF has decided toproceed with the implementation of compliance requirements of the CSRD. This report therefore includes some general disclosure requirements detailed in ESRS 2.General basis for preparation of the sustainability statement (BP-1)The report has been prepared on a consolidated basis with all entities and subsidiaries included. This applies to all parts of the report – both the sustainability statements and financialstatements. In some cases, where we only have data for DEIF’s headquarters, this is specified.The sustainability statements cover all upstream and downstream activities with varying levels of details, depending on the availability of data and information. If no supplier or customer specific data is available, underlying assumptions aredisclosed. IROs have been included for all direct and indirect business relationships as described in the DMA. No relevant information has beenomitted due to intellectual property, know-how or the results of innovation.Material IROs are divided into Prioritised Sustainability Topics and other Material Sustainability Topics, which require due diligence.Disclosures in relation to specific circumstances (BP-2)We apply the same definition of time horizons in the financial and sustainability statements, i.e. one year for short-term, two to five years formedium-term and more than five years for long-term.With the exception of ÅRL § 99a, there is no other information included in the sustainability statement stemming from other legislation or generally accepted sustainability reporting standards, which require DEIF to disclosesustainability information.We strive to make the data relevant, trustworthy, comparable, verifiable andunderstandable, linking past, present and future as far as possible. Where value chainestimations were necessary, they are detailed in Appendix 1: Value Chain Estimations.A list of disclosure requirements complied with in preparing the sustainability statement will be provided for the financial year 2026. This alsoincludes the table of all the data points thatderive from other EU legislation as listed in ESRS 2 Appendix B.Double Materiality AssessmentThe Double Materiality Assessment (DMA) was initially carried out in 2023 by various internal stakeholders and consultants from Nordic Sustainability. The results of the DMA were approved by the Executive Management and the Board of Directors.DEIF assesses the need to revise the DMA on an annual basis, while a full revision is scheduled to take place at least every 5 years. The next revision is scheduled for 2026 to align with the amended ESRS.Description of the process to identify and assess material impacts, risk, and opportunities.The following methodologies and assumptions have been applied to identify impacts, risks, and opportunities:Methodology: All DEIFs activities and its entire value chain activities have been included in the Double Materiality AssessmentScope: All 90+ sustainability topics referenced in Application Requirement (AR) 16 of ESRS 1 were scored using the concept of double materiality (DEIF’s impact on the environment and/ or people + financial risks and opportunities for DEIF associated with environmental, social, or governance topics) for both DEIF’s own operations and value chain, using thorough ESRS-basedmethodology.The topics were scored based on internal company data for own operations, and industry average data for the value chain, using a set of scoring keys developed by an external consultancy. In the scoring process we applied the following assumption: Impacts that have occurred or are likely to occur in the electronics value chain, are also likely to occur in DEIF’s value chain. This is the case even if impacts are only publicly documented or based on the nature of the supply chain in general and might not be directly linkable to DEIF.The DMA process does not focus on specific activities, business relationships, geographies, yet looks at the broad spectrum of potential and actual impacts.The process considers DEIF’s impacts through own operations as well asimpacts occurring as a result of its business relationships. All ESRS topics, subtopics, and sub-sub-topics were scored separately for own operationsand DEIF’s value chain. This is due to the fact that most impacts occur in the value chain. The results depict that this distinguishment is necessary, asimpacts vary in size as well as in overall materiality depending on the location in the value chain.24 material sustainability matters were identified for DEIF’s own operations, whilst 52 material matters were identified for DEIF’s value chain.Scoring: To facilitate a systematic impact assessment, a set of scoring keys was employed, including three distinct E, S, G scoring keys for negative and positive impacts respectively, and two financial scoring keys for evaluating risks and opportunities. The keys followed guidance from ESRS, whereapplicable. The impact topics were categorized for own operations and/or the value chain, considering actual and potential impacts. Each sustainability topic underwent dual scoring. ESRS 1 frames 3.4 and 3.5 were used to score both impact materiality and financial materiality.Impact materiality: For actual negative impact materiality scoring was applied to severity and in the case of potential negative impacts scoring was applied to severity and likelihood; severity was separately assessed for scale, scope, and irremediable character. Positive impacts were assessed according toESRS 1 section 3.4: Impact Materiality, namely scale and scope for actual positive impacts and additionally likelihood was assessed for potentialpositive impacts. For potential human rights impacts, severity took precedence over the likelihood, as per ESRS 1 para 45.Financial materiality: Financial materiality was assessed by rating the magnitude of the financial effect and the likelihood.Currently sustainability-related risks are not prioritised relative to other types of risks. Sustainability-related risks are currently visualised separately from the overall risk management process – see ESRS 2, IRO-1, 53f.Threshold: The cut off for impact materiality as well as financial materiality was set at 2.0. A threshold of 2.0 was chosen as it represents an accurate picture of DEIF’s material IROs.Data sources:• Publicly available sources on documented value chain impact within the industry• Previous materiality assessment documentation• Internal documents and interviews• Existing risk assessmentStakeholder Involvement: Internal and external stakeholders were involved throughout the process, providing input and validating findings. Users ofsustainability reporting as well as affected stakeholders were consulted, including both internal as well as external stakeholders.Internal stakeholders were a core team, which gave input to the preliminary scoring of material topics. C-suite interviews as well as ESG workshops were conducted to confirm the results of the scoring. In addition, the results of anemployee satisfaction survey were also used as input. An additional interview with representatives of the owner group of DEIF was performed during this reporting period.External stakeholder interviews were conducted. DEIF was only able to secure four interviews – two suppliers, one customer, and one bank. In the next revision of the DMA in 2026 DEIF will focus on integrating more external perspectives.Overview of the process: All financial effects have been mapped and scored alongside impact materiality for all ESRS topics and sub-topics, divided intoeffects in the value chain and own operations separately. There were no ESRS sub or sub-sub-topics identified, which were material from the financialmateriality perspective only. However, various sustainability matters which were material from the impact perspective also triggered financial materiality. The Core team as well as internal topic experts validated the DMA results, prior to the presentation of the preliminary results to members of Executive Management. Executive Management and the Board of Directors approved the results of the Double Materiality Assessment and subsequentreassessments.Material Impacts, Risks, and Opportunities (IROs)Overview of our material IROsThe following tables list our sustainability-related IROs that were identified and assessed as material as a result of the DMA process. Results of the DMA were aggregated where identified impacts overlapped. The material topics are categorised according to priority. Other material sustainability topics listed demand due diligence and focus, but those topics are not strategically pursued. All IROs, which are addressed in this report, are explained more in depth in the dedicated topical sections of the sustainability statement. IROs, which are not addressed are marked as such (“-”) in the overall IRO tables on this page.Prioritised sustainability topics Downstream distribition TimeDMA topics IRO Upstream supply chain Own operations & customershorizonPage+ ✓ Direct GHG emissions contributing to climate change Energy from non-renewable sources !!sustainability: competitiveness ! + ✓ 19 & 43+✓ Material price increases & impact on delivery performance ! ! + ✓ Protection of Health & Safety 51! Employee retention & talent ! attraction risks ! Privacy breaches through Cyber Attacks !!! Notes:Positive impactNegative impactOpportunityRisk 1 entity-specific topic+ ✓ ! Short termShort/medium termMedium termMedium/long termLong termShort/medium/long termOther material sustainability topics requiring due diligenceDownstream distribition TimeDMA topics IRO Upstream supply chain Own operations & customershorizonPageE2 Pollutions−Direct emissions (company cars, travel, transportation of goods) -−Chemical pollution to water & soil-−Substances of concern & very high concern-E3 Water−Water use & discharge-Biodiversity & E4 −Biodiversity loss due to GHG emissions-Eecosystems−Biodiversity impact through land use change/degradation-Biodiversity Impact through −pollution-Biodiversity Impact through, water −use, desertification & soil sealing-Workers in the S2 −Working Conditions58value chain−Equal Treatment & Opportunities58−Worker-related human rights 58! Human rights violations in VC58AffectedLand and water impact due to S3 −mining activities-communitiesProduct use in connection to −human rights violation26 & 54Communities civil and −political rights-Mining activities infringing on −-indigenous communities+ Job opportunities in Skive, DK54! Operation in countries with social unrest/conflict -entireG1 Business+ ✓ Promoting DEIFs culture reportConduct−When Whistle-blower system not effective 26 & 58Anti-environmental & −-social lobbyingStrict laws impact on supplier −management-−Mismanagement of sub-suppliers-−Corruption and bribery prevention, detection, and training58Complex supply chain management-! ! Reputational damage due to corruption & bribery incidents-Non-material topics in 2025:E Climate change adaptation (E1), Pollution of water, soil in own operation (E2)Pollution of living organisms (E2), Microplastics (E2), Water and Marine Resources in own operation (E3), Biodiversity - State of Species (E4), Ecosystem Services in own operation (E4), Resource Outflows in own operation (E5)S Social dialogue, freedom of association, work councils in own operation (S1), Training and Skills Development in value chain (S2), Other labour-related human rights (S2) G Animal welfare (G1)Interests and views of stakeholdersESRS 2 - SBM-2: Interests and views of stakeholders StakeholdersPurpose of engagementOwners and financial partners • Corporate strategy • Corporate governance – business ethics • Financial and ESG results • Risk management Employees at DEIF • Culture and leadership• Health, wellbeing and safety• Development opportunities• Diversity and inclusion• Human rights, labour rightsCustomers• Products and pricing• Quality and certification• Cybersecurity• Delivery performance• Service and support• SustainabilityChannel partners • Products and pricing• Quality and certification• Cybersecurity• Delivery performance• PartnershipsSuppliers• Financial solidity and payment of bills • PartnershipsAuthorities• Compliance with legislation, standards, certification schemes, etc.Local communities• Pollution (noise, effluents, air pollution)• Employment opportunities• SponsorshipsUniversities and other•Traineeships educational institutions• Semester/ Dissertation ProjectsEngagement - how is it organised and how are outcomes taken into accountThe owner family is strongly represented on the Board of Directors and oversees the preparation of strategies, risk analysis, Code of Conduct (CoC) and supervises the performance of the company in general. The Board sets goals and follows up on financial and ESG ambitions and targets. The Board has established a dedicated Sustainability Committee that provides sparring and inspiration to the sustainability work and receives updates on the important projects to facilitate decisions on the Board.We encourage our employees to take part in the development of the company, e.g., as sustainability ambassadors, members of the Young Advisory Board, members of the senior network etc. We offer development opportunities in existing roles, for new positions or developing the competence level in general. We have a global health and safety organisation in place, a Human RIghts Committee, a committee for collaboration in Denmark and the DEIF Code of Conduct for employees ensures that all basic rights are in place. Employee Satisfaction Surveys and yearly Employee Development Dialogues are other ways to engage in and impact the organisation and processes.We have a strong global presence to be close to our customers, to listen to and fulfil their needs with high-quality, flexible, certified and cybersecure products. We use NPS (Net Promoter Score) to track customer satisfaction and get important feedback that makes it possible to react if something needs to be adjusted. Close dialogue with customers brings vital input to product development and strategic plans. Further, customer audits at DEIF help us identify areas that can be improved.We work closely with dealers and distributors to ensure that we support them in building our common business. The partners also provide important market information to DEIF. The DEIF Academy offers classroom and online training, whitepapers, etc. We support with adviceand customisation when needed.All suppliers must adhere to DEIF’s Supplier Code of Conduct. We carry out audits of new suppliers and re-audits of existing suppliers and lead discussions with those contributing with large GHG emissions to our GHG inventory. With selected suppliers, DEIF has entered into a close collaboration, to identify levers for decarbonisation.Monitoring of DEIF’s compliance obligation is decentralised. While DEIF’s general counsel monitors and ensures that DEIF is compliant with national and international legislation affecting all of DEIF, such as export control and GPDR, other departments/ working groups work with other parts of national and international compliance obligations. For example, Product Approval monitors product specific requirements of other bodies of standardisation and certification.DEIF has processes and procedures in place to avoid pollution of the local environment. There are also procedures in place to remediate situations if pollution occurs despite the implemented measures.DEIF offers employment opportunities for marginalised groups and sponsors local activities. DEIF engages in several community initiatives.DEIF cooperates with universities and other technical schools in many places. We offer opportunities for students, including thesis pro- jects, insight into future job opportunities, company visits, traineeships, and mentorships. ESRS sub-topicSustainability IRO Topics IRO CategoryValue Chain LocationAddressed in SectionUpstreamOwn OperationsDownstreamEnergy management focus of+Product Energy Efficiency at customer’s productssystem (see page 43)Entity Specific Product energy efficiency Topicat customer applicationCustomers focus on energy efficiency✓Not addressed& ability to deliver matching solutionsSupply Chain Disruptions due toMitigationSupply disruptions!Not addressedClimate EffectsDirect GHG emissions from −GHG Inventory 2025 & DecarbonisationScope 1,2 & 3 activitiesactivities (see page 39 & 41) Direct GHG emissions contributingAdaptationto climate changeRisk to competitiveness due to ! Not addressedincreased focus on sustainability Energy from non-renewable GHG Inventory 2025 & Decarbonisation Non-renewable energy sources at HQ −sourcesand subsidiaries and supply chainactivities (see page 39 & 41)Customer focus on sustainability: Customers’ sustainability expectations Energy ! Not addressedcompetitivenessnot metEnergy prices. Brownouts/blackouts orGHG Inventory 2025 & Decarbonisation Energy prices & Energy shortages!shortages activities (see page 39 & 41)DEIF’s material IROs relating to Climate Changestem mainly from early upstream processes (e.g., mining and material processing) and during the product usage. GHG Inventory results reveal thatover 98% of GHG emissions are attributed to Scope3, particularly the categories of “Purchased Goodsand Services” and “Use of Sold Products”. Yet it isimportant to also manage and measure GHG emis-sions associated to own operations. Supply chain disruptions due to the effects of climate change,as well as energy-related risks, are also assessed as material in DEIF’s DMA. However, they are notincluded in the description below.+ Positive impact −Negative impact ✓Opportunity!RiskAmbitions & targets In line with SBTi approved climate targets, DEIFs climate ambitions include a near-term target as well as a net-zero target.Overall Net-Zero Target: DEIF A/S commits to reach net-zero greenhouse gas emissions across the value chain by 2050.Near-Term Targets: DEIF A/S commits to reduce absolute scope 1 and 2 GHGemissions 67% by 2030 from a 2023 base year. DEIF A/S commits to reduce absolute scope 3 GHG emissions from purchased goods and services, fuel-and energy-related activities, upstream and downstream transportation and distribution, waste generated in operations, business travel, employeecommuting, processing of sold products, use of sold products, and end-of-life treatment of sold products 42% within the same timeframe.Long-Term Targets: DEIF A/S commits to reduce absolute scope 1, 2 and scope 3 GHG emissions 90% by 2050 from a 2023 base year.Actions, performance & progressProgress against science-based targets (excludes Scope 3 Category 2 Capital Goods, since category is excluded of SBTi approved target):% change Near Term 20252023compared to Target (t CO2e)(t CO2e)baseline year (2030)(2023)Scope 1 & 2 6721,464 -54% -67%Scope 346,44538,630+20%-42%Total47,11740,094+17.5%The following sub-pages highight actions, performance & progress divided into three IRO topics within Climate Change, namely:• GHG Inventory 2025• Decarbonisation activities• Product Energy Efficiency at customer application GHG Inventory 2025The 2025 GHG inventory shows that decarbonisation efforts in Scope 1 and 2lead to a 54% reduction in GHG emissions over the period 2023–2025. Scope 3 (all categories included) saw an increase in emissions by 13%. Combining allScopes, the total GHG emissions increased with 10.5% between 2023 and 2025.% change 202520242023compared to(t CO2e)(t CO2e)(t CO2e)baseline year (2023)Scope 1 & 2 672 1,612 1,464 -54% Scope 346,45238,283 41,170 +13% Total47,12339,89542,634+10.5%Scope 1 & 2 Reductions in Scope 1&2 can be attributed to two changes:1. Adoption of electric cars in DEIFs company car fleet (emissions related to the production of newly purchased or leased vehicles are reportedseparately under optional emissions)2. DEIF Headquarters in Skive had its entire electricity usage covered by renewable energy sources through means of own production, a Power Purchase Agreement (PPA), and Guarantees of Origin (GOs). In 2025, the distribution was the following:Sold to grid, converted to ElectricityDirect usageGOs (annual matching) Own solar panel production 13% 16% PPA (wind) 42% 12% Additional GOs17% Scope 3DEIF’s Scope 3 emissions increased by 13% compared to the baseline (2023) and now account for 98.5% of total emissions. The increase in Scope 3 emissions isdriven by business growth. As sales volumes increase, emissions from bothPurchased Goods and Services and Use of Sold Products also rise. This highlightsthe importance of supplier engagement as a key priority going forward. In addition, we will take a closer look at emissions from the use of sold products, which is thelargest source in our GHG inventory. Going forward, we will assess opportunities to reduce emissions further—for example through new and improved power-supply technologies.The 2025 GHG inventory showed that emissions from Purchased Goods andServices increased by 6.7% compared with 2023, a figure lower than DEIF’s growth (14%) during the same period. This was driven by purchasing behaviour, primarilyan inventory build-up in 2023 to secure delivery performance, followed byinventory reductions in subsequent periods as stock was used in production.At first glance, the overall trend in Purchased Goods and Services from 2022 to2025 may appear stagnant; however, this is misleading. In short, once adjusted for the inventory build-up in 2023 and 2024, the trend aligns with the increase insales. Overall Use of Sold Products increased with 26.3% from 2023 to 2025 closely linked to the growth in sales volume.• A 23.6% increase in the total number of units sold• A 3.1% increase in the average emissions factor, reflecting the expected power sources where DEIF’s products are used• A 0.8% decrease in average power consumption per product sold, driven by changes in product mixWe have not yet been able to reverse the overall trend in Scope 3 during the period; however, actions being implemented during 2025 are expected to limit further increases in greenhouse gas emissions going forward.Other Scope 3 categories, including transport, waste, business travel andemployee commuting, represent a relatively small share of total emissions and remained broadly stable, or have shown slight increases in line with DEIF’s commercial growth in 2025. No significant changes were observed in thesecategories, and they continue to be monitored to ensure completeness of the inventory. Overall, a relatively small number of products and components continue to account for a significant share of Scope 3 emissions, highlighting clear priorities for targeted decarbonisation efforts.Methodological improvements & changes from previous years:A shift in the contribution of key Scope 3 categories was observed in 2025.Purchased Goods and Services accounts for 34% in 2025 (previously reported as 50% in 2024) while Use of Sold Products emissions account for 55% in 2025 (previously reported as 39% in 2024). This is due to an update in emission factorsused within direct Purchase of Goods and Services as well as due to an increase in emissions from Use of Sold Products.For Purchased Goods and Services more precise emission factors were applied for PCBs, reducing their overall attributed impact for this component. The updated emission factor for PCBs has been applied in DEIF’s 2023 and 2024 inventory to maintain methodological consistency between all years.In 2025, we sold a higher share of products with higher average power consumption during the use phase than in 2024. While DEIFs products operated with a weighted average energy consumption of 3.47 W*, sales volumes of morethan 150,000 power-using units in 2025 make this category the largest contributor to our total GHG emissions.These greenhouse gas accounting updates reflect an improved understanding of DEIF’s climate impacts and do not represent changes to product design or material selection.*Weighted average power consumption weights each product’s wattage by the number of units sold, so higher-volume products have a proportionally larger influence on the average.+23%Decarbonisation activities in 2025DEIF’s decarbonisation efforts are currently focused on a limited number of levers with focus on the categories with a big impact on total emissions primarily focussing on purchased goods and services. The biggest source of emissions for DEIF is the energy use of our sold products, which is more complex to tackle in the short term. In both categories the electricity grid to produce components and to run DEIFs products, is the biggest single common denominator for achieving DEIF’s target of 42% emission reduction by 2030.We used 2025 to prepare initiatives, which partly take effect in 2026 or later. In2025, we focused our work on four decarbonisation initiatives to start the work on reducing GHG emissions:1.Reducing GHG emissions of Printed Circuit Boards (PCBs)2.Reducing the impact of OEM products 3.Identifying ways to reduce the impact of business travel4.Working to secure on-site renewable energy generation 1.Reducing GHG emissions of Printed Circuit Boards (PCBs) In 2025, we worked on transferring PCB production to two new producers with a 100% of electricity from renewable energy sources. The original goal was to move 75% of our PCBs to new facilities by the end of 2025, but we managed to increase the share to 95% after careful evaluation of product quality.As PCBs are highly energy-intensive to produce, the transition to manufacturing facilities powered by renewable energy is expected to reduce PCB-related GHG emissions by 46%. The impact will first be reflected in the 2026 GHG inventory. At that point, the reduction in PCB emissions is expected to translate into an overall decrease of just under 1.5% in total GHG emissions.We are currently investigating if the remaining 5% of PCBs, which are more complex, can also be transferred to the new facilities without compromising quality.2.Reducing the impact of OEM productsThe initiative focused on analysing the OEM product category, which accounts for 16% of direct purchased goods emission. We identified eight key supplierscovering 95% of the category. Desk research shows that two suppliers have begun sustainability initiatives to address emissions. We maintain ongoing dialogues with all OEM suppliers to ensure progress regarding emission reduction.3.Identifying ways to reduce the impact of business travelBusiness travel was addressed in 2025 by preparation and communication of common guidelines for overseas travel and travel over shorterdistances. Based on an assessment of accessible flight data, short distance flights, where public transport could have been taken instead, were only a few. Yet at this point data accuracy did not allow us to assess the success of the travel guidelines with the subsidiaries.Overall emissions increased again in 2025, though not proportionally, as industry emission factors by DEFRA were corrected downward. In 2025, one million additional km were flown by Denmark based staff.4.Working to secure on-site renewable energy generation The proposed installation of a wind turbine at DEIF’s headquarters in Skive supports our commitment to reducing GHG emissions by enabling our production facilities to run entirely on renewable energy—a growing requirement from key customers. The turbine will also allow DEIF todemonstrate our leadership in electrification and show how the transition towards a more competitive industrial sector powered by renewableelectricity can take place in practice. In addition, the site will function as a demonstration and testing site for DEIF technologies, integrating solar PV, wind and battery storage for electrification of a modern productionenvironment. The installation of the wind turbine is pending approval of the local municipality.In the meantime, we have purchased a wind-PPA covering up to 80% of the expected annual electricity needs for DEIF buildings located in Skive municipality.Projected Decarbonisation Journey As stated earlier in the report, a projection of our ability to reduce our GHG emissions due to ambition of 42% reduction is only within reach ifthe global electricity grids decarbonise. If only looking at the effect of the carbon intensity of electricity grids, DEIF would need a full decarbonisation of the grids to achieve our near-term Scope 3 target. As a full decarbonisation is highly unrealistic - national grids are on averageprojected to decarbonise by 17% (IEA forecast) - DEIF must actively work with various levers to reduce in line with the near-term target.1,007 tCO2e in 2025 1,741 tCO2e in 2025 = 15% of direct 1,491 tCO2e in 2025 procurement emissions1,426 tCO2e in 2025 procurement emissions1,145 tCO2e in 2025 = 10% of direct 1,827 tCO2e in 2025 = 16% of direct 351 tCO2e in 2025 Housing, 175 tCO2e in 2025 These levers include (but are not limited to): • A sourcing strategy to focus on suppliers with 100% renewable electricity.• In-sourcing to DEIF where feasible and sensible.In addition to that DEIF is planning on playing an active role in lobbying for a faster decarbonisation of the global electricity grids. This includes also a focus on micro-grids focused on renewable energy sourcestogether with energy storage.Developing a more comprehensive near-term decarbonisation planIn the second half of 2025, we also started working on an updated and more comprehensive decarbonisation plan, including a roadmap ofprojects ensuring that we reach our near-term science-based target by 2030.The first phase of this plan focused on the category of Purchased goods and services, since this category constitutes almost 34% of DEIF’s GHG emissions. Within this category we worked with the top 10 componentcategories, which constitute 91% of direct procurement GHG emissions (see figure on direct procurement emissions on former page).The results of this first phase were twofold:• Identification of processes that contribute to the GHG emissions of different components and where these emissions occur in the value chain.• Researching decarbonisation levers and industry maturity of alternative processes, approaches and materials.The results are being used to prepare an implementation strategy, including decisions on which suppliers to use and which decarbonisation topics to address in subsequent supplier agreements.During the second phase of the project, we will incorporate decarbonisation initiatives that cover business travel, downstream transportation of products to customers, and the use phase of DEIF’s products.Next 12 months GHG Inventory• Extrapolation of GHG Inventory changes based on identified decarbonisation levers.• Data quality improvement for business travel in order to track effectiveness of decarbonisation initiatives.Near-term decarbonisation plan• Near-term decarbonisation plan will be finalised, which will constitute one part of the transition plan for climate change mitigation.• Decarbonisation activities in early 2026 will focus onsupplier engagement. We hope to determine whether and to what extend supplier decarbonisation efforts might lead to reductions influencing DEIF’s GHG emissions.• For the top 5 components (by GHG emission), the primary driver of emissions is the electricity use during manufacturing. Therefore, the first level of engagement with suppliers will be to identify their shareof renewable electricity used for manufacturing these components as well as their plans going forward.• The second phase of developing the near-term decarbonisation plan will focus on the other GHG categories and the specific projectswhich can be initiated to decrease emissions. This includes product use-phase emissions, where we will monitor developments in newer, more efficient power supplies to reduce electricity consumption during the use phase of DEIF’s products. However, due to long market penetration and replacement cycles, the impact is expected tomaterialise gradually and the timing remains uncertain. In addition, we will also investigate business travel, and downstream transportation of goods. This will then also allow for a more specific forecast on which gaps to close to achieve DEIF’s near-term science-based target in 2030.• Implementation of an energy plan for DEIF’s headquarters, integrating battery storage to better utilise installed solar capacity and allowing our facilities to help balance the grid.• Continuation of wind turbine application process in Skive.#2 Energyefficiencyatcustomerapplications Supporting the global energy transition and working with our customers to reduce their climate impact Ambitions & targets Our ambition is to become market leader in our field byoffering customers the most advanced control and energy conversion technologies. DEIF has been at the forefront of delivering control solutions that enhance energy efficiency, lower fuel emissions and support electrification as well asintegration of renewable energy sources. The renewables market is expected to grow significantly in the coming years, especially within decentral power generation that combines solar energy with batterystorage. This growth is driven by regulations that direct investments towards low-carbon technologies and by the increasing maturity of renewable energy markets andsolutions.DEIF provides a comprehensive portfolio of products that aligns with these industry developments, and weanticipate a growing demand for open and programmable platforms that address the evolving needs of the energy sector.Targets:• Upgrade of 3000 wind turbines by 2030• Internal target of reaching an increased AEP of 2-3% when retrofitting wind turbinesActions, performance & progressRevenue distribution in 2025: Products related torenewables and energy storage made up 9% of DEIF’s total revenue in 2025 (2024: 8%). Solutions aimed at reducing fossil-fuel consumption, typically gensets equipped with energy management systems, represented 40% (2024:37%), while retrofits and upgrades designed to enhance efficiency accounted for 17% (2024: 20%). The remaining34% of revenue stemmed from so-called passive components, which do not actively affect energy use or efficiency.New converter technology: Power converters are a key enabler in the shift towards low-emission energy systems. In 2025, we continued the development of the new DEIF iE converter series in collaboration with partners AVL, SALand Wolfspeed. We also initiated the first customer tests in both marine and land-based applications.The DEIF iE converters are highly energy efficient and onlylose around 3–4% of the converted energy as heat,roughly half of what conventional converters typically lose. By leveraging silicon carbide technology, the new DEIF converters maximise energy output, reduce cooling requirements, and lower energy consumption acrossapplications.Hybrid energy solutions: In 2025, demand for battery- based systems continued to rise. We supplied controllers for hybrid applications combining diesel engines withrenewables and/or battery storage. These hybrid solutions decrease the operating hours of diesel engines and also optimise fuel consumption during diesel operation.Wind turbine retrofit: By upgrading wind turbine controllers, DEIF helps asset owners boost the AnnualEnergy Production (AEP) by varying amounts depending on the type of wind turbine, improving overall efficiency and extending turbine lifetime. In 2025, we delivered retrofit solutions for 280 wind turbines.Overall, DEIF has retrofitted 782 wind turbines so far (wind turbines in operation).Project to quantify avoided emissions In 2025, DEIF together with Joanneum Research Life Institute in Graz, Austria, calculated the effect on GHG emissionswhen upgrading existing wind turbines with different DEIF control solutions. The study was based on a single case, where 70 Senvion wind turbines located in Mojave,California, were upgraded. The wind park has an installed power of about 140 MW and was originally constructed in 2011/2012. Depending on the DEIF controllerscenarios, the calculations revealed that the GHG emission savings connected to using DEIF’s control units, are between 1,700 and 4,900 t CO2e per year for the entire wind park (20 years and 25 years of additional operation respectively)*. In this case, an AEP increase for the wind park of about 1% was used to calculate the GHG emission savings. When increasing windproduction, it is the flexible load in the grid, which is replaced by wind. In the case ofCalifornia wind replaces natural gas.Upskilling energy professionals DEIF plays an active role in upskilling energy professionals across the world, and all our subsidiaries offer training forpartners and customers. The goal is toempower users to make the most of DEIF devices and to design, build, and operate solutions that contribute to the energy transition by potentially reducing fuel consumption and emissions while ensuring reliable power.In Denmark and the US, we run DEIFAcademies open for customers, partners and colleagues. In 2025, the academiesoffered courses in, for instance, advanced energy management, convertertechnology, specific product introductions and PLC programming. The academies in Denmark and the US had 242 participants in 2025. In 2026, we will open a DEIF Academy in India.Next 12 months In 2026, we will continue expanding our portfolio to support the green energytransition. A key milestone will be the commercial launch of the new DEIF iE converter solution that sets a new benchmark for efficiency and resource conservation, supporting asset owners,operators and system builders in the drive for low-carbon solutions. DEIF is known for the most advanced, efficient and reliablesolutions. We are working dedicatedly torelease the new version of our powermanagement solution, increasing flexibility, openness and including all new renewable energy sources including battery systems.Also, DEIF will investigate how to approximate the impact of DEIF’s solutions on fuel consumption by end-customers.While there are individual cases demonstrating savings, we wish toinvestigate if it is possible to establish a broader data baseline.Customer casesLow-emission solutions with Multipower in BrazilMultipower sees a change in the market for rental gensets with customers increasingly wanting to reduce emissions by installing hybrid systems with energy storage.Consequently, they are modernising theirfleet with controllers that can handle hybrid systems and energy storage. They do that with controllers from DEIF.“Together, we can deliver and implement solutions that make a difference in the Brazilian market. I think excellent technical support is critical in the future development in our market and I think DEIF should continue innovating and developing good products with excellent technical support. DEIF is a great partner.” Edimar Araujo Sousa, partner and owner of Multipower Geradores.China’s first ferry operating with zero emissionsWanly Lake is a favourite tourist destination, featuring clear water and an abundance oflush green islands. Now, tourists can gosightseeing on a ferry for 196 passengerswith zero emissions. The boat is electric and the batteries are charged by hydropower.DEIF has supplied the control solution.Solar plant saves diesel at Sementec farm in Brazil Sementec is a prominent Brazilian agricultural company specialising in producing seeds, particularly soybeans and wheat, and recognised for adopting modern technology, including solar-powered irrigation on their farms. At one of their sites, DEIF supplied the control solution for the hybrid irrigation system that integrates solar power with dieselgensets. According to Sementec, the new system improved the irrigation, resulting in a 30% increase in harvest yield and saving diesel consumption by up to 70%. (see LINK)Celebrating 30 years of strong partnership For more than a quarter of a century, DEIF has been a trusted partner to Caldic Techniek in the Netherlands, delivering advanced control solutions for premium gensets across the Dutch markets. Now, we are taking the next step together, collaborating on four pilotprojects featuring DEIF’s innovative converter solutions that are perfectly aligned with Caldic’s forward-looking business strategy.“The market is evolving rapidly towards hybrid energy solutions, integrating batteries and solar for both marine and land-based applications. By adding converters, DEIF supports this transition and expands our product portfolio. At Caldic Techniek, we like to be at the forefront of technological development and look forward to testing DEIF’s new converters in spring 2026.” Rob Olijerhoek, Business Unit Manager Energy technology Resource use and circularityIRO Category Value Chain Location Addressed in Section + Product Energy Efficiency at customer’s ✓ + Increasing lifespan of products through repairs ✓ Material price increases & impact prices and availability; Possible impact on reputa-! Disadvantage if competitors progress more on! & Services) marily relying on virgin resources and the Ambitions & targets DEIF’s circularity ambitions focus on reducing resource dependency over time by extending product lifetimes, improving material efficiency and enabling reuse and recycling where feasible. Our focus comprises the following areas:• Enhancing process efficiency and reducing waste• Designing products for long operational lifetimes • Strengthening opportunities for reuse and recycling • Safe and responsible chemical managementThe following target was set for 2025:For own operations: recycling rate of at least 88%Actions, performance & progressIn 2025, DEIF advanced its work on resource efficiency and circularity. The following section summarises key actions during the year, the impactachieved and the areas that will guide our continued efforts. •Designing products for long operational lifetimesDEIF’s solutions are built for 10-15 years of service, depending on environmental conditions. Data from 2015–2025 shows that failures are very rare:Age of productReturn rateExplanationEarly life issues can appear when units 0–2 years 0.16% are first put into operation3-9 years0.03%On Average 0.07%This strong and consistent reliability reduces the need for replacements and lowers resource use, supporting DEIFs ongoing efforts to integrate moresustainability considerations into product development. •Waste in operations2025202476,153Total Waste (kg)64,099(+18.8%) Recycling Rate 87% 87.5% Waste recycled (kg) 66,330 56,110 Waste incinerated (kg)9,730 7,919 The total waste generated in 2025 increased by 18.8% compared to 2024. The increase was foreseen and is mainly linked to higher operational activity and business volume. Our recycling rate reached 87% in 2025 (2024: 87.5%)which is slightly below the target of at least 88%.Corrugated cardboard:Corrugated cardboard represents DEIF’s largestwaste stream, accounting for around 35% of total waste and primarily originating from supplier packaging. In 2024, a pilot initiativeshowed that a substantial share of this material can be reused as protective filler in outgoingshipments, reducing the need for virgin packaging and extending the useful life of the cardboard.The reuse of corrugated cardboard as protective filler in outgoing shipments wasimplemented as a standard practice in 2025.In 2025 cardboard waste amounted to 26,610 kg, compared to 25,660 kg in 2024, corresponding to an increase of 3.7%.As a result, the target of reducing corrugated cardboard waste by 25% compared to the 2024 baseline was not achieved.The target proved too ambitious relative to the volume growth in operations and will berecalibrated to better reflect future activity levels. During the same period, the turnover increased by 14% and the number of order lines increased by 50%.Plastic waste: In 2025, DEIF generated 6,340 kg of plastic waste. As plastic waste is expected to rise in line with increasing business activity, plastic film waste is now compacted into bales, improving handling, reducing storage needs and lowering transport-related GHG emissions. By acquiring a used baling machine, DEIF further extended the lifetime of existing equipment and supported circular principles.Food waste: Although GHG emissions from ourcanteen account for only 0.4% of our totalemissions, we actively work to minimise foodwaste in canteen operations at the headquarters. On average, less than 1 kg of food waste is generated per day.Circular economy: We are strengthening eco-design principles in developmentprocesses. A first version of the new DEIFeco-design screening tool has been developed,and it will be tested in two upcoming projects: one focused on plastic material improvementand another centred on developing a new Power Control Unit module.Data management: To meet reporting and customer requirements, DEIF continues to strengthen data quality and documentation related to materials and our overall environmental and social impact.Next 12 months • Advance circular PCB and component reuse through the CIRCUIT project (see page 21)• Engage relevant suppliers to explore packaging reduction opportunities• Assess opportunities to expand the externalreuse of scrapped electronic components that remain suitable for reuse• Integrate the new eco-design screening tool into product development processes• Strengthen data quality on resource flows to support reporting and customer requirementsMeeting facility built with focus on low material impactSet in beautiful natural surroundings, DEIF isextending its guesthouse and conference facilities with a new 250 sqm building that showcases the use of natural materials and solutions that can reduce the impact on the environment. Wherever possible, DEIF has opted for using biogenic materials. The building rests on an elevated pad foundation toprotect the soil and wildlife beneath it while eliminating the use of concrete. The building’sframework, internal and external cladding and oakshingled roof are all made of FSC-certified wood from Danish forests. Wood-fibre insulationcontributes to a healthy and pleasant indoor climate, and the house is heated by a ground source heat pump system. An intelligent power managementsystem ensures that the power consumption is kept to a minimum.“The landscape and wildlife here are unique, and we wanted to create a building that blends into the surroundings and respects nature in every way. Current building regulations have certainly challenged us, but as I see the house now, in the final stages of the building process, I know we have succeeded. The house itself and the view from there are outstanding. We look forward to welcoming the first guests to our new facilities in the summer of 2026.” Toke Foss, Chairman of the Board. Own workforceESRS sub-topicSustainability IRO Topics IRO CategoryValue Chain LocationAddressed in SectionUpstreamOwn OperationsDownstreamSecure and long-lasting employment opportuni-+ tiesSecure employmentSecure Employment &Positive brand reputation, employee satisfaction ✓ Worklife Balance (see page 49)Working conditionsUnhealthy workload, which might turn into long working days, and which might impact work-life balanceOvertime & Work-Life balanceBreach of overtime laws, overtime and its impact on work-life balance might impact employee! Not addressedretention and future talent attractionHealth and Safety Incidents, resulting in serious Protection of Health & Safety harm(see page 51)Health & Safety Protection of Health and Safety Public attention in case policies & safeguards fail ! Not addressedand accidents happenTraining opportunities for employees: lack of Training and skills Training and Skills Development Training and skills developmentthese can negatively affect their professionaldevelopment(see page 52)developmentPotential gender pay gapDiversity & Equal Treatment (see page 53)Diversity, Equity, Equality &Unequal ratio of males/femalesInclusionRisk for reputational damage, talent attraction,Diversity andemployee turnover if gender pay gap and inequal ! Not addressedEqual Treatmentratio persistsIncidents of harassment/ bullying. Whistleblower portals / formalised complaint mechanisms need-Not addresseded in all parts of DEIFViolence & Harassment in the workplaceImpact on employees & media attention if harass-! Not addressedment and violence is insufficiently handledDEIF’s material IROs related to Own Work-force relate to Work-life balance risks, risks related to gender inequality, lack of training opportunities, and missing due diligence processes. It is important that health andsafety remain a priority moving forward.Overall ambition for own workforceDEIF aims to be a motivating, inclusive and safe workplace that supports long-term talent attraction, development and retention across all locations. We support and respect the protection of internationally proclaimed human rights and make sure that we do not in any way contribute to the violation of these rights. We want to offer a safe and inspiring work environment with opportunities for personal and professional development. We strive to secure equalrights and commit to group-wide targets to increase diversity at all management levels and to provide job opportuni-ties for marginalised groups and people with reduced ability to work.The following section is divided into four topics, corresponding to the ESRS sub-topics, namely: • Secure employment and work-life balance • Protection of Health and Safety • Training and skills development• Diversity and Equal TreatmentSecure employment and work-life balanceAmbitions & targets Our goal is for DEIF to be a workplace that attracts top talent and is valued by current employees. As we pursue our strategic growth ambitions, attracting talent at all levels has never been more critical. That is why we invest in positioning DEIF as a strong and appealing employerbrand for todays and tomorrow’s talent.At the same time, it is important for us to create anattractive working environment with an employee turnover below 10%.Actions, performance & progressRecruitment:In 2025, our workforce (headcount) increased by 18%, corresponding to a net growth of 108 new colleagues. During the year we hired 162 colleagues - 103 in Denmarkand 59 in our international subsidiaries. The growth was partly offset by 54 employee exits, resulting in the overall net increase of 108 new colleaguesNumber of new recruits20252024Denmark (headcounts)10354Subsidiaries (headcounts)5942Employee turnover:The employee turnover rate in 2025 was 8.3% (2024:12.2%), fully aligned with our goal of maintaining employee turnover below 10%. Nearly half of the exits (41%) were involuntary. The main reason for the high number of involuntary exits was linked to moving competences to the regions and hence reducing the number of positions inDenmark. Another reason was a review of cultural fit in view of the ongoing cultural transformation.The task of recruiting, onboarding and retaining people at DEIF remains a key action in 2026 in line with the growth strategy.Onboarding of new employees:As part of the global onboarding process, all new employees are introduced to the DEIF Code of Conduct,our corporate values and culture, and take part inworkshops covering these topics A survey among newcomers was conducted in 2025with responses from 70 new hires in Denmark. The main finding was that the employees who have had a ‘buddy’ as their go-to-person were much more satisfied with the onboarding. Consequently, we decided to make itmandatory for managers to appoint a buddy to all new employees in Denmark by January 1, 2026.Worklife balance:Work-life balance is a key priority, and we have implemented a Work-from-Home policy that allows colleagues - except those in production and serviceroles – to work remotely two days a week, Mondays and Fridays. These hybrid working arrangements are highly valued by our employees.Employee Satisfaction Survey (ESS): Engaged employees are key to enabling DEIF to achieve the strategic ambitions. Every second year, DEIF carries out a comprehensive Employee Engagement Survey across the global organisation, which measuresimportant drivers like engagement, loyalty, culture, leadership, empowerment and collaboration.In 2025, the survey achieved a 94% response rate, and the overall results showed that DEIF is ranked ‘top inclass’ for engagement and loyalty in the international benchmark. Employees expressed strong pride in DEIF’s reputation and reported high satisfaction with their job content and working conditions, especially the flexible hours and opportunities to work from home.The survey also highlighted areas for improvement, with complicated processes, silos and culture still being key concerns. This feedback has since been incorporatedinto the development and rollout of new leadershipprinciples that place greater emphasis on collaboration across the organisation and leading people and culture through change.During 2025, survey results have been presented and discussed in all departments across DEIF, and action plans have been drawn up. Next survey is planned for 2027.Roundtable meetings:Roundtable meetings have been held medio 2025 for approximately 50 employees across departments in Denmark with the aim of getting a better understanding of what works well in DEIF and what can be improved. Working from home and the high level of flexibility was highly appreciated, whereas silo-thinking is still an area to improve in certain areas.Employee Advocacy Community: In 2025, we launched a new Employee Advocacyprogramme. 20 colleagues joined from the beginning, helping to promote DEIF by sharing personal stories on social media - about their work and what it is like to be part of the company. Within just three months, the group created 34 posts, which reached more than 25,000 people and generated almost 50,000 views.Employer branding:Since 2023, DEIF has worked actively to strengthen awareness of the company as an attractive workplace. Most of our recruitment happens through the Job index online portal, and in 2025 we saw strong improvements in DEIF’s performance on the job portal: job postingsreceived 22% more views and 50% more clicks on the‘Apply’ button compared to 2024. This goes to show that more candidates now recognise DEIF and have a better understanding of who we are and what we stand for.Career events and cooperation with schools: In 2025, DEIF participated in eight different job fairs within STEM-related fields of employment. We also increased our cooperation with schools and colleges to inspire young people to consider a career within STEM. Amongothers, we:• Co-organised the Danish Science Day, inviting 20students from a nearby school to visit DEIF for a day, spending time in production and solvingpractical tasks related to electronics and production.• Co-organised the Nordic Data Centre Week, where 25 students from a local college received an introduction to DEIF and the company’s role in the energy sector with a special focus on data centres. The students solved different technical assignments ranging from coding to testing ofscenarios via emulation software.Next 12 months • Develop our recruitment expertise to support our growth targets• Facilitate the culture transformation • Ensure to reduce the number of involuntary exits• Improve the follow up of our onboarding processProtection of health and safetyAmbitions & targets At DEIF, the safety of our people comes first. We strive for zero work-related accidents and expect the samecommitment from our suppliers and partners. Whenworking on project sites, we work closely with ourcustomers to create a safe environment that prevents accidents and protects our employees from health and safety risks. All colleagues receive safety training, clearinstructions, appropriate personal protective equipment (PPE) where relevant, and proper supervision, and only those who have been fully briefed on safety procedures are permitted to carry out the work.All DEIF service engineers are trained to make on-sitehealth and safety assessments, and every employee has aresponsibility to decline any task that could compromisesafety. We also carry out annual audits to ensure continuous compliance with our safety policy.All DEIF’s subsidiaries organise their health and safety efforts in a structure that reflects the size of theorganisation, with representation from both management and employees.A local health and safety manager ensures that DEIFcomplies with relevant regulations and industry standards in each location.Health & Safety target: Zero accidentsActions, performance & progressIn 2025, we recorded 4 accidents resulting in sick leave (2024: 3), while 8 near-accidents were recorded (2024:10). The total sick leave in 2025 was 2.3% (2024: 3%).20252024Accidents43Near-accidents8 10 Total sick leave2.3%3.0%While all recorded accidents in 2025 were minor andhandled through established procedures, the number of work related accidents over the past two years is notsatisfactory and does not align with our ambition of zero accidents.This highlights the need for continued and strengthened focus on prevention, systematic follow up and safety culture to further reduce workplace accidents.General safety and working environment across DEIF: The general work to ensure safe and healthy working conditions in production and office environmentscontinued, supported by the dedicated HSE organisation representing all facilities and teams.Safety in converter development, production and testingarea: Safety in the production and testing areas had top priority in 2025. All relevant employees have completedcourses in the EN 50110 safety standard for operation of electrical installations. This also applies for all on-site installation and service engineers.Reducing heavy lifting: In 2025, we installed traverse cranes in our production and shipping areas to reduceheavy lifting and improve ergonomics. Maximum weight fomanual handling of units has been set at 12 kg.Substitution of hazardous substances: We continued thework to substitute hazardous chemicals with lesshazardous alternatives continued. In 2025, we replaced3M™ coating with Promosolv coating as a lessenvironmentally impactful solution for PCB protection.Safety in the global organisation: At DEIF’s subsidiaries, the structured and targeted work with HSE continued in line with global guidelines, the annual activity plan and documentation requirements. No work-related accidents resulting in sick leave were recorded in subsidiaries in2025.Next 12 months Our focus areas continue to be safety in converter production, testing, installation and service. Morespecifically, we continue to offer training in EN 50110 as e-learning, while developing a more extensive, internal course for working with converter installation.Some open office areas reported a high noise level. First steps will be taken to reduce noise levels through the installation of acoustic equipment in the first open office area. An investigation is planned for 2026 to identify if these interventions have reduced noise levels sufficiently. The equipment also aims at lowering levels of visualdisturbances in the office.Training and skills developmentAmbitions & targets At DEIF, we are committed to developing the company and to supporting one another in performing at our best. We learn and growtogether, while respecting individual needs to maintain a healthy work-life balance. We care for each other, embrace our differences, and strive to create a workplace where everyone feels theybelong. We take responsibility for our actions, for the well-being of people, and for the impact we have on the environment and the communitiesaround us. With a strong culture, a global mindset and the ambition to lead the industry, we move forward together.DEIFs target for Employee Development Dialogue is to get as close to 100% completion as possible.Actions, performance & progressEmployee Development Dialogues (EDDs): DEIF’sGlobal Employee Policy states that everyemployee is entitled to at least one yearly EDD in addition to regular one-to-one meetings with their manager. In 2025, 90% of the employeescompleted an EDD (2024: 82%), which plays an important role in supporting each employee’s development.New career structure and roles: In 2025, we created a new career structure and roles within Sales, Integration and Service & Support. Theinitiative served the purpose of ensuring a global and aligned approach and was designed to create a clear and inspiring career structure as step 1and attach a Leadership and Development programme as step 2 for business developers and sales engineers.Mentoring programme: In 2024-25, weimplemented a global mentoring programme,offering insights into own aspirations and career paths within leadership at DEIF. The programme received very positive feedback, and a new programme with eight mentors and mentees was started at the beginning of 2026.Development of top talents: At DEIF, we believe that taking part in strategic projects and working closely with leaders offer valuable learning and career opportunities for our top talents. During2025, several talents had the chance to work on key strategic initiatives.External courses: In 2025, DEIF invested 2.5 DKKm (2024: 1.8 DKKm) in external training activities across the global organisation (onaverage about DKK 3,000 per employee). The training included both general courses, e.g.,Danish language classes, and specialised courses aimed at developing specific skills for individualemployees. In addition to these more formal training activities, we also offer participation in external networks and online webinars, which arenot included in the figures above.Next 12 months • Ensuring a more proactive approach followingup on the number of EDD’s not completed• Timely follow-up on high-potential talents with concrete activities• Leadership Programme for new managers defined and rolled out• Develop an L&D programme for Sales Workforce in non-leadership positions. In 2026 primary focus is Sales Engineer/-Representative and Business development rolesDiversity and equal treatmentAmbitions & targets At DEIF, we are committed to fostering a culture where diversity and inclusion are at the heart of our company culture and our way of doing business. We believe everyindividual should be respected for who they are andrecognised for the unique value they bring to our sharedsuccess. We want to offer equal opportunities for everyone, everywhere, and to create a workplace where everyemployee feels safe, valued, and free from harassment, victimisation and discrimination. We see diversity not just as a responsibility, but as a driver of innovation, unlocking new perspectives and enabling solutions that can help us realise our strategic ambitions. The development of group-widediversity principles and targets is a priority area to strengthen coherence and accountability across the organisation.Diversity pledge: In 2024, DEIF in Denmark signed the Diversity Pledge of the Danish Industry trade organisation. The pledge implies that companies have 40% women in top management positions by 2030.Female/ male ratio for managers: DEIF also has a female/ male manager target stating that the ration should match the organisations female/ male ratio for its management level.Trainees/ Apprentices: minimum 4% of DEIFs totalworkforce.Actions, performance & progressReduce biases in recruitment processes and increasediversity of candidates: In 2025, we carried out a human rights risk assessmentfocused on own workforce as a first step, which identified the risk of unconscious bias in recruitment as a salient human rights issue for DEIF’s own workforce. As a result, we developed an action plan aimed at reducing biases in hiring.DEIF applies a blind recruitment process for some job rolesby requiring candidates to respond to job specificquestions, enabling an objective assessment of their ability to address the role’s defined tasks and challenges. This ensures that no personal data is included and that theprocess is conducted without bias.Even though 162 positions were recruited, only a minority of vacant positions used the method of blind recruitments.This indicates that the method is not adopted in the organisation – nor by recruiters.Female/ male ratio:In 2025, two out of seven members of DEIF’s Executive Management were women (29%).DEIF had a total of 92 managers (2024: 76). The share of female managers was 21% (2024: 24%). The total share of female employees in DEIF are 27%, which indicates that theincreasing number of leadership roles is not reflected in the gender distribution and remains an important area of focus going forward.20252024Leadership roles9276Share of Female managers 21% 24%Flex-jobs:In 2025 we employed 12 people in a “flex job” or equivalent to it, which is an increase of 3 people since 2024.Equal opportunities in the local labour market:DEIF participated with ten mentors in the programme ‘Career Bridge’, supporting the integration of foreigners by helping to apply for jobs or supporting their education in Denmark.Next 12 months • In 2026, one of the important tasks will be to define what diversity means at DEIF, set up diversity targetsand prepare company-wide principles for diversity and inclusion at DEIF.• We we will explore how to incorporate the most effective and value creating elements of blindrecruitment into our traditional recruitment process.• Bias training for all recruiting managers, enablingmanagers to recognise and reduce unconscious biasesthat can affect recruitment.• Getting ready for EU’s Gender Pay Directive: We are in the process of preparing and implementing a newsystem and process to meet EU requirements on gender pay equality.Affected CommunitiesESRS sub-topicSustainability IRO Topics IRO CategoryValue Chain LocationAddressed in SectionUpstreamOwn OperationsDownstreamImpact on Water and sanitation of nearby communitiesdue pressure on water, power and other resources by −Not addressedCommunities’ eco-Mining activitiesLand and waste impact due to nomic, social andcultural rightsmining activitiesMining activities can require land-use change and can−Not addressedsignificantly disturb surrounding communitiesMisuse of products from end-consumers (e.g., for Human Rights Due Diligence Product use in connection to military purposes), or suppliers being involved in armed/ −(see page 26) & Affectedhuman rights violationsconflict areasCommunities (see page 54) Severe Restriction of Freedom of expression/ Freedom of−Not addressedAssembly in countries of Tier 2+ suppliersCommunities’ civil Restriction of civil rightsand political rightsRisk of punishment of human rights defenders in various −Not addressedTier 2+ supplier countriesOperation in countries with social Potential reputational and operational risks if operating in ! Not addressedunrest/ conflictregions of social unrest / armed conflictsRights of indigenous Mining activities infringing on Cultural rights: Mining activities potentially infringing on −Not addressedpeoplesindigenous communitiescultural grounds and rights.Surrounding Reliable and long-term job opportunities and contribute Affected Communities (see Job opportunities in Skive, −Communitiesto cultural activities in the community of Skivepage 54)DEIF’s material IROs related to AffectedCommunities are particularly related to the early upstream phase related e.g., tomining operations on indigenous lands.Risk of disturbance of local communities through e.g., wind turbines in downstream value chain. DEIF’s products ending up in conflict areas or are used for controversial purposes, particularly as DEIF’s products are also used in defence and militaryequipment. On the other hand, DEIF isassessed to have positive impacts on the community in Skive.Ambitions & targets We actively work to support and enrich the local communities we are part of – by, for instance, creating jobs, welcoming students and opening ourdoors to groups who may face challenges entering the job market. We also sponsor cultural and sports activities and collaborate with local partners to advance environmental and social initiatives.Actions, performance & progressProduct Use in connection to human rights violationsKnowing that there is a risk that DEIF’s products end up in countries,areas, and/or companies involved in conflict and human rights violations, we have initiated the development of a process to address human rights risks and potential violations for our customers and end-users. This isembedded in an overall effort to mature our work with human rights.This process addresses scenarios, where products are sold either directlyor indirectly through intermediaries. This process also covers corruption and sanctions. For more information see the description of our work with Human Rights Due Diligence (page 26).Cooperation with universities: In 2025, DEIF continued cooperation with universities and technical schools across the world, sponsoringequipment, offering possibilities for students to work on their theses and offering teaching resources.Internships: DEIF continuously offers a variety of internships, both during studies and after graduation to help ease the transition into the labour market.Major donations: • Donation to the Alexander Foss Industry Foundation – DKK 80,000/ year in five years. In 2025, seven entrepreneurs and small businesses each received DKK 100,000 from the Foundation for their work ondevelopment of technologically innovative and commercially sustainable solutions.• Donation to the Independent Climate Foundation Skive – DKK 50,000/ year in three years.• Other donations to local cultural venues and sports clubs in and around Skive, Denmark approx. DKK 600,000/yearNext 12 months Participate in a new initiative “Karriereløftet” to attract students to Mid-and West Jutland.A collection of local activities to support and enrich the local communities DEIF is part ofFree meals for seniors in Korea DEIF Korea places strong importance on long-term, meaningful contributions to the local community. In the past, our volunteer activities have focused on environmental initiatives, but in 2025 we decided toaddress social issues by providing free meals to vulnerableseniors living alone through the Korean Sharing Federation. The seniors expressed their gratitude that DEIF employees took the time to cook for them and that DEIF Koreaprovided soy milk to be enjoyed with the meal.Care for left behind children in ChinaIn the rural areas of JiangxiProvince, many children live with their grandparents while their parents work in distant cities. To support their growth and spark their imagination, the DEIF team in China donated sports equipment(footballs, basketballs, skippingropes, chess sets) and educational supplies (painting sets, picturebooks, notebooks) to the children in three villages.‘Get Fit Give Hope’ campaignWhat started as a simple Corporate Social Responsibility (CSR) initiative in India turned into something far greater - a journey of health, hope, and humanity. Over 50 days, DEIFcolleagues from around the world joined the ‘Get Fit Give Hope’ campaign and walked, ran andcycled a total distance of 6,130 km. By doing this, the team contributed EUR 5,500 to providing holistictreatment and financial support for children battling cancer.Support to Movement of the Intellectually Disabled ofSingapore (MINDS)DEIF Asia Pacific continued to drive its Corporate Social Responsibility strategy in 2025, focusing on social inclusion and directly engaging with the localcommunity, emphasising the value of caring and collaboration. Through two events hosted with MINDS, our teamcontributed 152 volunteer hours to carry out two events in the local community.Giving back to our community - Fort Lauderdale, USAIn April 2025, a group of DEIF employees dedicated their time to supporting the local homeless community in Fort Lauderdale by handing out goodie bags and meals. As part of the initiative, DEIF also contributed a USD 500 donation to further strengthen the local efforts. This engagement serves as a meaningful reminder of the importance of socialresponsibility and the value of supporting vulnerable groups within the communities in which we operate.Consumers and end-usersIRO Category Value Chain Location Addressed in Section Breaches of GDPR principles on data protection and privacy data: Information related Privacy: impacts Data protection & GPDR Privacy breaches through cyberattacks ! Personal Safety ! ! the accessibility of DEIFs products by + ✓ ! Risk Ambitions & targets DEIF has currently not formulated an overall ambition for this area. Ambitions and targets are handled within different functional areas at the moment.Information security, data protection and responsible communication are critical to maintaining customer trust and access to regulated markets. DEIF is committed to protecting the confidentiality, integrity and availability ofinformation assets and data across our operations, products and value chain.We take responsibility for information security in our interactions with customers, business partners and other relevant stakeholders, and work continuously to meet applicable requirements and expectations.Actions, performance & progressData ethics and cybersecurity In 2025, DEIF was certified mature according to ISO 27001 Information Security Management System. DEIF is also GDPR and NIS2 compliant, fulfilling all requirements to cybersecurity risk management, incident reporting,governance and supply chain security.IT-security awareness and trainingAll DEIF employees have received information security training in 2025 with special focus on phishing awareness, handling confidential data, and how to ensure that communication is secure. We also run bimonthly awarenesscampaigns with real-world examples and interactive content, to simulate threat exercises to test the employee’s awareness. Regular phishing simulations (6 in 2025) help employees to recognise and respond to threats. Results are used to tailor follow-up training and improve individual awareness. The tests in 2025show that DEIF’s employees have very high awareness.According to the EU Artificial Intelligence Act, focusing on AI literacy, DEIF employees receive training in the use of AI. In 2025, approx. 250 employees participated in AI-workshops.Product safety is an integral part of DEIF’s product development and market approval process. The product approval function is responsible for ensuring that products are tested in accordance with applicable international and national safety requirements and that required certifications are obtainedbefore products are placed on the market.Engaging the entire organisation in communicating crediblyTo ensure that sustainability is communicated in a credible way internally and externally, DEIF’s sustainability team developed a Communication Playbookwith practical guidelines on how to communicate about our sustainability initiatives. We complemented this with a short video introducing the keyprinciples and a webinar for all people managers, where we discussed why credible communication matters. 73 managers participated in the webinar, representing 79% of all leaders in the organisation. After the webinar, every manager was tasked with facilitating a workshop in their respectivedepartments to align on the way we communicate about sustainability. In 2025, 11 managers held workshops, reaching 74 employees.Next 12 months • The rollout of seminars to align on communication around sustainability will continue in 2026• DEIF is preparing for compliance with the EU Cyber Resilience Act (CRA), which is a new EU regulation that makes manufacturers legally responsible for the cybersecurity of digital products they sell in the European market. The law applies broadly to software, hardware, and connected devices.• We are establishing a roadmap towards compliance with a full project plan and resource demands to be established and published in April 2026.• Product safety: introducing the relevant regulations and test requirements for the Converter product lineBusinessConduct ESRS sub-topicSustainability IRO Topics IRO CategoryValue Chain LocationAddressed in SectionUpstreamOwn OperationsDownstreamCommunication of DEIF’s values and culture transparently publicly.+Addressed throughout report Promoting DEIF’s culture Reputational benefits due to engagement with community in Skive✓Not addressedLack of knowledge of how to access the whistle-blower system/ Business Conduct (see page Lack of trust in the system / Fear of reporting cases. Potentially −58)inadequate protection/retaliation of whistleblowers.Corporate Culture Whistle-blower system & Transparencynot effectiveSome larger tier 1 suppliers: seemingly no robust and accessible Human Rights Due Diligence whistle-blower portals in place. Potentially inadequate protection/ −(see page 26)retaliation of whistleblowers.Business Conduct (see page Corruption and bribery prevention, detection, and training − 58)Corruption & briberyReputational damage and potential compliance impacts due to ! Not addressedcorruption & bribery incidentsPolitical Influence & Anti-environmental and anti-Lobbying e.g., against progressive environmental or social policies − Not addressedLobbying Activitiessocial lobbyismby electronics industry Strict laws impact on Upcoming stricter regulation influencing supplier management − Not addressedsupplier managementMismanagement of Supplier RelationsMismanagement of sub-suppliers in the lower tiers of VC. − Not addressedsub-suppliersComplex supply chain Financial risk associated with managing longer and complex sup-! Not addressedmanagementpliers due to supply chain transparency legislation.DEIF’s material IROs related to Busi-ness Conduct are Risks related to governance in own operations relatingto e.g., corruption screening proce-dures. Risks exist both upstream and downstream if suppliers or customers do not comply with DEIF’s Code ofConduct and purchase agreements.+ Positive impact −Negative impact ✓Opportunity!RiskAmbitions & targets UN Global Compact Since 2016, DEIF has been a participant of the UN Global Compact. As part of the UN Global Compact Network Denmark, DEIF participates in educational programmes, such as the Business and Human RightsAccelerator.DEIF Code of ConductThe DEIF Code of Conduct guides all aspects of our work. The Code of Conduct follows the principles laid down in UN Global Compact. Allemployees have been introduced to the Code of Conduct, and all new employees complete training as part of the onboarding programme.DEIF maintains a zero-tolerance policy towards corruption, bribery and extortion, and we are committed to complying with all applicable anti-corruption laws.Actions, performance & progressInternal Corporate Social Responsibility (CSR) assessments As in previous years, all DEIF subsidiaries that hold ISO certifications completed internal CSR self-assessments using the Global CompactAssessment Tool published by the UN in 2025. The assessment showed compliance at all the five sites. Work is currently done to expand theassessments to more sites.Grievance Mechanisms There are several channels that can be used to address issues within the DEIF organisation:• The “Employee Satisfaction Survey”, conducted globally every two years• The Workplace Assessment, conducted in the Danish organisation every three years• CSR assessments in subsidiaries, which asks specific questions around social issues and human rights, conducted globally every yearDEIF also operates both internal and external whistle-blower systems, ensuring thatemployees and external partners have a secure way to report legal violations or serious concerns. Submissions are treated with strict confidentiality, and the system is easily accessible via deif.com. In 2025, no reports were submitted through the whistle-blower system.Anti-corruptionAll contracts are drafted in full compliance with laws and regulations, ensuring thatcontracts with suppliers, consultants and other partners include clear anti-corruption provisions. The DEIF Code of Conduct serves as a handbook for all DEIF employees andaffiliates to be consulted when in doubtabout the appropriate behaviour in a given context.All new employees receive instructions in theanti-corruption policy and participate indiscussions of relevant dilemma cases. Refresher courses are carried out across the organisation to maintain awareness.In 2025, no corruption cases were recorded.Cooperation with suppliersEnsuring a responsible supply chain wasrecognised in the DMA as a key focus area. Therefore, we have worked with key tier 1 suppliers on setting targets and KPIs forquality and delivery performance and other important parameters. We have also haddialogues with suppliers about sustainability topics such as greenhouse gas emissionsand their target setting with SBTi. Furthermore, we have formalised our auditing process in close collaboration with an external partner.DEIF requires all major suppliers, sub-suppliers and business partners to sign andcommit to our Supplier Code of Conduct.Besides, suppliers commit to ensuring that minerals used are all from mines andsmelters, which are certified as conflict-free.We conduct supplier risk assessments and audits and set clear expectations for regular self-assessment and reporting. If cases of non-compliance are identified, suppliers are required to develop actions to address and solve the gaps. In 2025, we conductedaudits with two new suppliers. As part of the audit process, the audited manufacturersreceive feedback to strengthen their practices.Tax practiceDEIF considers a responsible and compliant tax practice to be an essential part of how we do business globally and live up to our values. DEIF does not operate in tax havens, jurisdictions stated on EU’s blacklist or injurisdictions which are stated on OECD’s listof non-cooperatives. We support the harmonisation of international tax rules and collaboration between governments to ensure a fair tax environment.Next 12 months • The plan for 2026 is to scrutinise DEIF’s current grievance mechanisms and toadjust where appropriate and necessary.• In 2026, we are planning a general review of the Supplier Code of Conduct, integrating results from the DMA carried out in 2023 and the DMA-review in2026. As part of the process, we will consider training activities for suppliers in the content of the revised Code ofConduct.Overview ofESG indicators – targetsand measured overthe last fiveyears 2025 2024 2023 2022 2021 Indicator Unit Target Global3DKGlobal3DKGlobal3DKGlobal3DK Global DKEnvironment 42% reduction by 2030 from a 2023 Total GHG emissions (Scope 1-3) tCO2e baseline.47,123-39,895-42,634-34,961---Net-zero by no later than 2050.Scope 1 - direct emissions from operations tCO2e 2133225067425235473310316203Stationary combustion tCO2e 52-59- 199 144253202--Mobile combustion tCO2e 147 18 191 67226 91 217 109 --Reduction:Fugitive emissions tCO2e 14 14 DK, close to 100% reduction in 2025 ----3---Global, 67% reductiobin 2030Scope 2 (market based) tCO2e 459581,3611,0041,039663631425266117Purchased electricity tCO2e 44953 1,351 1,0001,033 661 629423--Purchased steam, heat, cooling tCO2e 115 10 56202--Scope 3 - indirect emissions in the value chain tCO2e 46,452-38,283-41,170-33,858---Purchased Goods and Services tCO2e 16,091 -12,552-14,596- 12,581 ---of which is related to production tCO2e 11,503 -8,694- 10,776 -10.,492---of which is related to fixed costs (incl. tCO2e 4,588-3,858-3,820-2,089---subsidiariesCapital Goods tCO2e 7 -378-2,540-----Fuel and Energy tCO2e 100 -490- 381 -277---42% reduction by 2030 from a 2023 Transportation (Upstream & Downstream) tCO2e 1,452- 1,261 -936-1,004---baseline.Waste tCO2e 19 Net-zero by no later than 2050.- 15 - 10 - 10 ---Business Travel tCO2e 1,934-1,903-1,668- 1,679 ---Employee Commuting tCO2e 1,074 -700-644- 618 ---Optional Leased Assets (as lease)1 tCO2e 502- 187 -448- 179 ---Processing of sold products tCO2e 1-0-0-0---Use of sold products tCO2e 25,709-20,930-20,355-17,659---End of Life tCO2e 65-54-40-30---Energy Usage - Electricity kWh2,584,521 1.764.678 2 2,119,388 1,675,3662 1,599,5681,033,506 1,054,197 686,585 1,165,508 809,447Heating (Gas)m³24,904- 11,826 097,76270,827108,795 100,164 92,97384,656Waste generated (DK)tons76-64-57-57-46Waste for recycling (DK) % recycling rate minimum 88%-87-88-88-85-82Turnover share of products sold to renewable % 66-65-64- 61 -57-applications & to improve efficiency1Not included in inventory total2Excluding electricity consumption produced on-site by our own solar panels 3Global emissions include emissions from DenmarkOverview ofESG indicators – targetsand measured overthe last fiveyears 2025 2024 2023 2022 2021 Indicator Unit Target Global DK Global DK Global DK Global DK Global DKSocialNumber of Employees (headcount per 31 December)number699- 591 - 551 - 519 -499-Number of Employees (FTE)Number649-565-522-493-539-M/F to reflect employee M/F in management % 79/21-77/23-76/24-73/27-74/26-composition as a minimumIncreasing diversity in M/F employees % 73/27-72/28-72/28-71/29-70/30-recruitmentM/F recruited number-74/26-68/28- 51/14 -49/17-42/15-Employee turnover % -8.3- 12 -6.2-9-9.9-Employee engagement indexMin index 75 77 - 77 -N/A-78-N/A-Sick leave total % --2.3-3.0-3.0-3.2-2.4Other native language than Danishnumber-53-40-33- 31 -26People in flex jobsnumber-- 12 -9-6-3-5Learning positions % Min 4%-5-5.6-5.8-6.7-5.4Work accidents with sick leavenumber0-4-3-0-1-0Near-accidents number--8- 10 -11- 10 - 7 Work-related fatalities number-0000200000Governance M/F in executive managementnumber-5/2-5/2-5/2-3/2-3/2-M/F on Board (external members) % 60/4067/33-67/33-67/33-67/33-60/40-Whistle-blower reports number-0-0-0-0-0- 868900000 765600000 711600000 632000000 397400000 342000000 364200000 315900000 471500000 423600000 347400000 316100000 97500000 93700000 97500000 93700000 267900000 231700000 171200000 143500000 70700000 64300000 72600000 64900000 2400000 22100000 2400000 3400000 5500000 0 5500000 0 32300000 55900000 3000000 17300000 0 0 31000000 37600000 3100000 1900000 1800000 200000 19300000 18200000 26400000 29900000 16100000 39600000 9400000 25200000 200000 10200000 -6500000 -4200000 -15900000 -29400000 -15900000 -29400000 295900000 241900000 287900000 229200000 5900000 0 0 0 301800000 241900000 287900000 229200000 102000000 105700000 102000000 105700000 29800000 33700000 29800000 33700000 26100000 25400000 11500000 10900000 100000 500000 100000 500000 28400000 15800000 28400000 15800000 186500000 181000000 171900000 166500000 0 0 63200000 223700000 3200000 2800000 400000 400000 3200000 2800000 63600000 224100000 491600000 425700000 523500000 619800000 155400000 152900000 141200000 136600000 141600000 151100000 70700000 76600000 1100000 900000 83800000 89900000 10300000 7800000 4000000 3700000 11500000 6600000 7800000 3500000 164500000 166400000 166300000 173700000 32200000 34300000 2900000 7500000 352000000 353600000 310400000 317800000 843600000 779300000 833900000 937600000 5200000 5200000 5200000 5200000 0 0 224100000 178300000 0 0 12700000 36100000 239600000 237700000 2800000 23300000 -400000 -1300000 -400000 -1300000 10000000 10000000 10000000 10000000 254300000 251600000 254300000 251600000 22100000 20900000 20600000 19400000 22100000 20900000 20600000 19400000 31600000 33700000 31600000 33700000 36300000 61400000 36300000 61400000 24900000 21000000 19400000 19100000 23200000 2400000 23200000 2400000 116000000 118600000 110400000 116600000 2600000 2500000 2600000 2500000 312600000 258600000 312600000 258600000 4400000 1200000 4400000 1200000 84400000 76600000 76200000 72000000 0 0 32100000 192800000 2900000 8500000 1500000 0 44300000 40900000 19200000 22900000 451200000 388300000 448500000 550000000 567200000 506900000 559000000 666600000 843600000 779300000 833900000 937600000 5200000 237700000 -1300000 10000000 251600000 10000000 10000000 4000000 4000000 1100000 1100000 200000 200000 5900000 10000000 15900000 5200000 239600000 -400000 10000000 254300000 15900000 29400000 93700000 91500000 10800000 3100000 120400000 124100000 3100000 500000 19300000 16800000 4600000 -300000 99700000 108000000 114600000 91900000 29300000 42900000 300000 300000 400000 300000 -144100000 -134800000 2100000 1800000 -3900000 -300000 28900000 42000000 0 -3000000 0 10000000 -24000000 -1300000 10000000 20000000 44600000 34800000 200000 8000000 34300000 26300000 -2400000 -100000 32200000 34300000 5200000 36100000 23300000 -1300000 10000000 178300000 251600000 10000000 10000000 4000000 4000000 1100000 1100000 200000 200000 -19400000 -20500000 10000000 45800000 15900000 5200000 12700000 2800000 -400000 10000000 224100000 254300000 Revenue1:The disclosures in the financial statements include a breakdown of revenue by geographical marked based on thecustomer location. DEIF has omitted to disclose a breakdown of net revenue into business arears, cf. section 96(1) of the Danish Financial Statements Act, as the disclosure is expected to cause significant damage to the competitivesituationGroup Parent DKKm 2025202420252024Geographical markets:Asia 333.5282.9241.2198.4Europe & Africa385.6 357.1 382.4357.6Americas149.8 125.7 88.075.9868.9765.6711.6632.0 Other operating income and expenses2:Other operating income and expense comprise gains from disposals, reimbursements and other income and expenses not related to the primary operating activities. Income from equity investments in group 3:2025202420252024enterprisesShare of earnings from subsidiaries0035.942.5Share of losses from subsidiaries00-1.8-1.7Change in internal profit on inventory from 00-3.1-3.3sales with-in the Group0031.037.6 Financial income20252024202520244:Exchange rate adjustment 0.0 1.4 1.7 0.2Other financial income3.1 0.5 0.1 0.03.11.91.80.2 Financial expenses20252024202520245:Interest paid to affiliated companies 0.00.09.0 12.4 Other financial expenses19.3 18.2 17.4 17.5 19.318.226.429.9 Tax on profit for the year Group Parent 6: DKKm 2025202420252024Current income tax -0.86.0-7.4-6.7Adjustment of deferred tax 1.2 3.5 1.2 1.8 Tax for the year 0.49.4-6.3-4.9Tax for the year compres:Tax on profit for the year0.2 10.2 -6.5-4.2Recognised in equity0.2-0.70.2-0.70.49.4-6.3-4.9Tax on profit for the year compres:Tax rate of 22% on profit before tax and Income 3.58.7-4.7-2.7from equity investments in group enterprisesPermanent differences0.2 0.1 0.2 0.1 Effect of deviation of foreign subsidiaries’ tax 2.92.90.00.0rate relative to Danish tax ratePermanent differences related to research and -2.1-1.8-2.1-1.8development costsAdjustment prior years-4.50.00.00.0Other taxes and adjustments0.20.20.20.20.210.2-6.5-4.2 7: Intangible assets Development DKKm projectsGoodwillGroupCost beginning of year 571.8 14.7 Additions for the year108.36.3Disposals for the year0.00.0Cost end of year 680.121.1 Depreciation and impairment beginning of year330.0 14.7 Depreciation during the year 54.20.5Depreciation and impairment year end384.215.2Carrying amount year end295.95.9Intangible assets are amortised on a straight-line3-10 years 3-10 yearsbasis over the expected useful lives of the assets:DKKm 20252024Depreciation and impairment of intangible assets is recognised as: Research and development costs54.749.354.749.3Development projects consist of new products and solutions to be used in decentralized power production and power management. The cost mainly includes direct salary costs, consultancy costs and purchased materials. This isregistered in the internal project management tool. The booked value as of 31 December 2025 totals 295.9 DKKm – of this 62.6 DKKm related to development projects in progress. New products and solutions is expected to significantly contribute to the revenue in the coming years.Goodwill is realted to DEIF Hispania which was purchased in 2025.Development DKKm projectsGoodwillParentCost beginning of year549.7 14.7 Additions for the year108.30.0Disposals for the year0.00.0Cost end of year 658.014.7Depreciation and impairment beginning of year320.5 14.7 Disposals during the year0.00.0Depreciation during the year 49.60.0Depreciation and impairment year end370.114.7Carrying amount year end287.90.0Intangible assets are amortised on a straight-line3-10 years 3-10 yearsbasis over the expected useful lives of the assets:DKKm 20252024Depreciation and impairment of intangible assets is recognised as:Research and development costs49.645.649.645.6Please refer to the Group section of development projects for a description of the projects. DKKm 20252024DKKm 20252024Depreciation and impairment of tangible assets, and profit or loss from the sale of tangible assets is recognised as:Depreciation and impairment of tangible assets, and profit or loss from the sale of tangible assets is recognised as:Production costs6.55.6Production costs6.55.6Research and development costs2.62.0Research and development costs2.62.0Distribution costs 9.1 7.5Distribution costs4.84.3Administration costs 4.44.0Administration costs 4.44.022.719.118.415.9Property, plant and Tangible assets 8: Other Leasehold equipment Land and Plant and fixtures and improve-under DKKm buildingsmachineryequipment ments construction Group Cost beginning of year178.3124.088.85.9 15.8 Exchange rate adjustment0.00.0-2.40.00.0Additions for the year0.40.69.80.0 18.6 Disposals for the year0.00 1.2 0.00.0Transferring during the year 3.32.60.00.0-5.9Cost end of year 182.0127.294.95.928.4Depreciation beginning of year 72.690.363.45.40.0Exchange rate adjustment0.00.0-1.50.00.0Depreciation for the year 7.47.07.90.40.0Depreciation of disposed assets for the year Reversal of depreciations on sold assets0.00.0-1.00.00.0Depreciation end of year80.097.468.85.80.0Carrying amount end of year102.029.826.10.128.425-50Depreciationsyears5-10 years3-10 years5 yearsOf which financial leases assets0.00.023.90.00.0Property, plant and Tangible assets (continued)8:Other Leasehold equipment Land and Plant and fixtures and improve-under DKKm buildingsmachineryequipment ments construction Parent Cost beginning of year 178.3 124.0 51.6 5.9 15.8 Additions for the year0.40.64.30.0 18.6 Disposals for the year0.00.00.00.00.0Transferring during the year 3.32.60.00.0-5.9Cost end of year 182.0127.255.85.928.4Depreciation beginning of year 72.690.340.75.40.0Depreciation for the year 7.47.03.60.40.0Depreciation end of year80.097.344.35.80.0Carrying amount end of year102.029.811.50.128.425-50Depreciationsyears5-10 years3-10 years5 yearsOf which financial leases assets0.00.023.90.00.0 Investments in group enterprises9: DKKm 20252024ParentEquity investments in group enterprisesCost beginning of year 157.6 157.6 Additions for the year4.60.0Disposals for the year -125.5 0.0Cost end of year 36.6157.6Net revaluations beginning of year66.1 39.0Exchange rate adjustments-4.00.0Profit for the year34.3 41.0 Disposals for the year-21.90.0Dividend paid to the parent company-44.8 -10.7 Change in internal profit on inventory from sales with-in the Group-3.1-3.3Net revaluations end of year26.566.1Carrying amount year end63.2223.7Shares in subsidiaries:ProfitPaid in Equitybefore taxNamePlacecapitalOwnershipDKKm DKKm DEIF Norge AS Tönsberg, Norway TNOK 1.000 100% 2.3 2.1 DEIF GmbH Bensheim, Germany TEUR 25 100% 8.93.9DEIF (UK) Limited Manchester, England TGBP 518 100% 4.70.3DEIF Hispania Alicante, Spain TEUR 10 100% 0.50.6DEIF Electrical (Shanghai) Co., Ltd Shanghai, China TCNY 5.000 100% 15.5 8.2DEIF do Brasil Campinas, Brasil TBRL 200 100% 2.9 11.7 DEIF Inc. Chicago, USA USD 100 100% 8.4 1.0 DEIF India Pvt. Ltd. Mumbai, India TINR 880 100% 4.8 2.1 DEIF MEDiterranea SARL Sophia-Antipolis, France TEUR 25 100% 7.32.4DEIF Asia Pacific Pte Ltd.Singapore, Singapore TSGD 50 100% 7.2 1.6 DEIF Middle East FZE Dubai, UAE TAED 100 100% 3.30.6WPT China Holding A/S*Skive, Denmark TDKK 100,5 100% 0.06.6DEIF Korea Co. Ltd. Busan, Republic of Korea MKRW 200 100% 2.00.7DEIF Mexico S.A. de C.V. Mexico City, Mexico TMXN 100 100% 3.50.6DEIF Wind Power Technology AustriaKlagenfurth, Austria TEUR 35 100% 13.1 -1.7Total amount84.440,8Internal profit 31. December 2025-21.2-3.163.237.7* closed during 2025 Inventories Group Parent 10:DKKm 2025202420252024Raw materials and consumables 112.6 114.8 112.6 114.8 Work in progress4.56.84.56.8Manufactured goods and goods for resale 57.647.722.2 13.2 Indirect production costs2.0 1.7 2.0 1.7 Internal profit on stock-21.2 -18.1 0.00.0155.4152.9141.2136.6 Non-current liabilities14:Repayments due with-in 1 year is classified as short term liabilities. Other liabilities is recognised as long term liabilities.Non-current liabilities falls due as follows:Group Parent DKKm 2025202420252024Mortgage debt (non-current liability)After 5 years 21.3 23.5 21.3 23.5Between 1 and 5 year 10.3 10.2 10.3 10.2 Non-current31.633.731.633.7With-in 1 year 2.62.52.62.534.236.334.236.3Bank loansAfter 5 years 21.8 37.0 21.8 37.0Between 1 and 5 year 14.424.414.424.4Non-current36.361.436.361.4With-in 1 year 312.6258.6312.6258.6348.9320.0348.9320.0Lease liabilities (non-current liability)Between 1 and 5 year 23.22.423.22.4With-in 1 year 4.4 1.2 4.4 1.2 27.53.627.53.6Other long term liabilitiesBetween 1 and 5 year 24.9 21.0 19.4 19.1 24.921.019.419.1 Prepayments11:Prepayments comprise prepaid costs incl. insurance, rent etc. Equity12:No shares as been given any special rights.Total contributed capital of DKK 5.155.000 is allocated in shares of DKK 100 each. There has not been any capital changes the last 5 years Provisions for deferred taxGroupParent13:DKKm 2025202420252024Intangible assets63.350.463.350.4Tangible assets-3.84.0-3.84.0Borrowing costs-0.3-0.3-0.3-0.3Inventories0.40.40.40.4Trade receivables-0.2-0.2-0.2-0.2Prepayments 1.7 0.8 1.7 0.8Tax loss carryforwards-39.2-34.2-40.7-35.722.120.920.619.4Defered tax is calculated based on the current tax rate (22%)Deferred tax beginning of year 20.9 17.4 19.4 17.6 Adjustment prior year-0.20.0-0.20.0Recognised in the income statement 1.2 2.71.2 1.0 Recognised directly in equity0.20.70.20.722.120.920.619.4 0 0 40200000 28300000 5900000 19400000 -34300000 -8900000 10000000 10000000 10000000 10000000 19:Staff costsWages and salaries349.2323.5243.3230.6Pensions27.324.319.6 17.7 Other social security expenses34.526.7 12.7 10.4 411.1374.5275.6258.7Staff costs has been recognised as:Production costs 61.5 72.1 61.5 72.1 Research and development costs102.4 91.6 102.4 91.6 Distribution costs200.4 168.1 64.952.2Administration costs 46.842.846,842.8411.1374.5275.6258.7Hereof salaries and wages for Executive Board and Board of Directors4.75.44.75.4 Fee to auditors appointed at the 18:annual general meetingGroup Parent DKKm 2025202420252024Fee for statutory audit0.40.40.40.3Other services0.2 0.1 0.1 0.20.60.50.50.4 Other commitments17:Lease- and rent commitmentsRent obligation24.722.60.70.7Lease obligation related to machinery and 19.8 17.3 14.914.1 company carsContractual obligationsThe company has entered into frame agreements with selected vendors regarding ongoing purchases.20250.01.120250.01.1rent 20240.02.1 nterest swaps According to section 98b(3), no. 1 of the Danish Financial Statement Act, renumeration of the Executive Board and the Board of Directors are disclosed as one item. Related parties20:FJV Foss Holding A/S is a related party and has a controlling interest in the companyAll shares are owned by: FJV Foss Holding A/S, Frisenborgvej 33, 7800 Skive, Denmark.In accordance with The Danish Financial Statements Act § 71 it shall be stated that, the Company’s annual report is included in the consolidated financial statements of FJV Foss Holding A/S.Transactions DEIF A/S has an ongoing balance towards FJV Foss Holding A/S. The non settled balance is recognised in the balance sheet as receivables from group companies.The transactions with related parties relates to normal remuniation to the board of directors, and settlement of tax with-in the Group. All transactions with related parties is carried at arms lengths. 2025102.00.41.7 60.00.02025102.00.01.760.00.0rent 2024105.7 0.01.7 60.00.0 Holding A/S is est, dividends DKKm 2025202422:Adjustments for non-cash items Financial income -3.1-0.5Financial expenses 19.3 16.8 Depreciation and impairment of intangible and tangible fixed assets77.468.4Loss/gain from the sale of fixed assets-0.10.0Adjustment for derivative financial instrumentsr excl. Tax 1.1-3.3Tax on profit for the year0.2 10.2 Non cash exchange rate adjustments-0.90.093.791.5Changes in working capital23: Change in inventory-2.442.0Change in receivables 1.9 -28.5Change in trade payables etc. 11.3 -10.3 10.83.1 Basis of preparationThe annual report is presented in accordance with the provisions of the Danish Financial Statements Act (Årsregnskabsloven) for large enterprises in reporting class C.The annual report is prepared in DKK million.DiversityThe under-represented gender in the board of management is the total number of women represented in the board. Members elected by the employees is not included.The under-represented gender in executive managementis the total number of women represented in the executive management.Basis of recognition and measurementIncome is recognised in the income statement asearned, including value adjustments of financial assets and liabilities. All expenses, including depreciation,amortisation, impairment losses and write-downs, are also recognised in the income statement.Assets are recognised in the balance sheet when it is probable that future economic benefits will flow to the company, and the value of such assets can be measuredreliably.Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow from the company, and the value of such liabilities can be measured reliably.On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described for each item below. On recognition and measurement, account is taken of foreseeable losses and risks arising before the date at which the annual report is presented and proving or disproving matters arising on or before the balance sheet date.Basis of consolidationThe consolidated financial statements comprise DEIF A/S (Parent) and the group enterprises (subsidiaries) thatare controlled by the Parent. Control is achieved by the Parent, either directly or indirectly, holding more than 50% of the voting rights or in any other way possibly or actually exercising controlling influence.The consolidated financial statements are prepared on the basis of the financial statements of DEIF A/S and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group income and expenses, intra-group accountsand dividends as well as profits and losses on transactions between the consolidated enterprises are eliminated. The financial statements used for consolidation have been prepared applying the Group’s accounting policies.Subsidiaries’ financial statement items are recognized in full in the consolidated financial statements.On recognition of subsidiaries, the income statementsare translated at the exchange rates applicable at the transaction date or approximate average exchangerates. The balance sheet items are translated using the exchange rates applicable at the balance sheet date. Foreign currency translation adjustments arising from the translation of equity at the beginning of the year using the exchange rates applicable at the balance sheet date and from the translation of income statements from average exchange rates to the exchange rates applicable at the balance sheet date are recognised directly in equity under the reserve for net revaluation according to the equitymethod in respect of investments measured according to the equity method, and otherwise under the foreign currency translation reserve.Translation adjustments of intercompany balances with subsidiaries, measured using the equity method and where the balance is considered to be part of the overall investment, are recognised directly in equity under the foreign currency translation reserve. On the divestmentof foreign entities, accumulated exchange differences are recognised in the income statement.Derivative financial instrumentsOn initial recognition in the balance sheet, derivative financial instruments are measured at cost andsubsequently at fair value. Derivative financial instruments are recognized under other receivables or other payables.Changes in the fair value of derivative financial instruments classified as and complying with the requirements for hedging the fair value of a recognizedasset or a recognized liability are recorded in the income statement together with changes in the value of thehedged asset or the hedged liability.Changes in the fair value of derivative financial instruments classified as and complying with the requirements for hedging future transactions are classified directly in equity. When the hedged transactions are realized, the accumulated changes are recognized as part of cost of the relevant financial statement items.For derivative financial instruments that do not comply with the requirements for being treated as hedginginstruments, changes in fair value are recognized currently in the income statement as financial income or financialexpenses.Income statementRevenueRevenue from the sale of manufactured goods and goods for resale is recognized in the income statement when delivery is made, and risk has passed to the buyer.Revenue is recognized net of VAT, duties and salesdiscounts and measured at fair value of the consideration fixed.Production costs Costs incurred, directly or indirectly, to generate the revenue for the year, including raw materials andconsumables, wages and salaries and lease of and depreciation, amortization and impairment losses on the fixed assets used in the production process, are recognized under production costs.Research and development costs Research and development costs includes wages andsalaries, depreciation, amortization and impairment losses on the development projects and other costs directly or indirectly associated with development activities.Distribution costsCosts for the distribution of goods sold during the yearand sales campaigns etc., including wages and salaries forsales staff, advertising and exhibition costs etc. and lease of and depreciation, amortisation and impairment losses on the fixed assets used in the distribution and salesactivity, are recognised under distribution costs. Administration costsCosts incurred during the year for management and administration, including wages and salaries foradministrative staff and management as well as office premise expenses, office expenses, bad debts etc. and lease of and depreciation, amortisation and impairment losses on the fixed assets used for administration, are recognised under administrative costs.Income from equity investments in group entreprisesFor equity investments in equity investments insubsidiaries, measured using the equity method, the share of the enterprises’ profit or loss is recognised in the income statement after elimination of unrealisedintercompany profits and losses and less any goodwill amortisation and impairment losses.Income from equity investments in equity investments in subsidiaries also comprises gains and losses on the sale of equity investments.Other net financialsInterest income and interest expenses etc. are recog-nised in other net financials.Amortisation of capital losses and borrowing costs relating to financial liabilities is recognised on an ongoing basis as financial expenses.Tax on profit for the yearThe current and deferred tax for the year is recognised in the income statement as tax on the profit/loss for theyear with the portion attributable to the profit/loss for the year, and directly in equity with the portion attributable to amounts recognised directly in equity.The Company is part of a Danish joint taxation of which FJV Foss Holding A/S is the administrative entity. The current Danish income tax is allocated among the jointly taxed companies proportionally to their taxable income (full allocation with a refund concerning tax losses).Foreign subsidiaries is not included in the joint taxation.Balance sheetDevelopment projectsDevelopment projects are recognised in the balance sheet where the project aims at developing a significant specific product or software platform, intended to be producedor used, respectively, by the company in its production process or products.On initial recognition, development projects are measured at cost. Cost comprises the purchase price plus expenses resulting directly from the purchase, including wages and salaries directly attributable to the development projects until the asset is ready for use.Other development projects and development costs are recognised in the income statement in the year in which they are incurred.Development projects in progress are transferred tocompleted development projects when the asset is ready for use.Development projects are subsequently measured in the balance sheet at cost less accumulated amortisation and impairment losses.Development projects are depreciated on a straight-line basis over the useful life, which is 3-10 years.An amount corresponding to capitalized developmentcosts occurred after 1 January 2016 including tax,has been recognized as “Reserve for research anddevelopment costs” in equity. The reserve is reduced by the following depreciations.GoodwillGoodwill is measured in the balance sheet at cost less accumulated amortisation and impairment losses.Goodwill is amortised using the straight-line method based on useful lives (3-5 years), which are stated in the ‘Depreciation and impairment losses’ section.Gains or losses on the disposal of intangible assetsGains or losses on the disposal of intangible assets aredetermined as the difference between the selling price, if any, less selling costs and the carrying amount at the date of disposal.Property, plant and equipmentLand and buildings, plant and machinery as well as other fixtures and equipment, leasehold improvements are measured at cost less accumulated depreciation andimpairment losses. Land is not depreciated.Cost comprises the acquisition price, costs directly attributable to the acquisition, and preparation costs of the asset until the time when it is ready to be put into operation.The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line depreciation is made on the basis of the following estimated usefullives of the assets:Buildings25 – 50 yearsPlant and machinery5 – 10 years Other fixtures and equipment 3 – 10 years Leasehold improvements5 yearsProperty, plant and equipment under construction are measured at cost. Costs incurred on property, plantand equipment under construction are transferred to the relevant asset category when the asset is ready for use. Land is measured at cost with no subsequent depreciations.Equity investments in group entreprisesEquity investments in subsidiaries are recognised and measured according to the equity method in the parent company financial statements.Subsidiaries and associates with a negative equity value are measured at zero value, and any receivables from these enterprises are written down by the Parent’s share of such negative equity if it is deemed irrecoverable. If the negative equity exceeds the amount receivable, the remaining amount is recognized under provisions if the Parent has a legal or constructive obligation to cover the liabilities of the relevant enterprise.Upon distribution of profit or loss, net revaluation ofinvestments in subsidiaries and associates is transferred to reserve for net revaluation according to the equitymethod under equity. Impairment lossesThe carrying amount of assets which are not measured at fair value is assessed annually for indicationsof impairment over and above what is reflected in depreciation. If the company’s realised return on an asset or a group of assets is lower than expected, this is considered an indication of impairment.If there are indications of impairment, an impairment test is conducted of individual assets or groups of assets.The assets or groups of assets are impaired to the lower of recoverable amount and carrying amount.The higher of net selling price and value in use is used as the recoverable amount. The value in use is determined asthe present value of expected net cash flows from the use of the asset or group of assets as well as expected netcash flows from the sale of the asset or group of assets after the expiry of their useful lives.Impairment losses are reversed when the reasons for the impairment no longer exist.InventoriesInventories are measured at cost calculated according to the FIFO-method (First-in First-out). Inventories arewritten down to the lower of cost and net realisable value.The cost of raw materials and consumables as well as goods for resale is determined as purchase prices plus expenses resulting directly from the purchase.The net realisable value of inventories is determined as the selling price less costs of completion and costsnecessary to make the sale and is determined taking into account marketability, obsolescence and the expected development in the selling price.ReceivablesReceivables are measured at amortised cost, which usually corresponds to the nominal value, less write-downs for bad debts.Write-downs for bad debts are determined based on an individual assessment of each receivable if thereis no objective evidence of individual impairment of a receivable.Deposits recognised under assets comprise deposits paid to the lessor under leases entered into by the company.PrepaymentsPrepayments recognised under assets comprise costs incurred in respect of subsequent financial years.CashCash includes deposits in bank account.EquityThe net revaluation of equity investments measured according to the equity method is recognized in the net revaluation reserve in equity according to the equitymethod to the extent that the carrying amount exceeds the cost.Current and deferred tax Current tax payable and receivable is recognised in the balance sheet as tax computed on the basis of the taxable income for the year, adjusted for tax paid on account.Joint taxation contributions payable and receivable arerecognised as income tax under receivables or payables in the balance sheet.Deferred tax liabilities and tax assets are recognised on the basis of all temporary differences between thecarrying amounts and tax bases of assets and liabilities.However, deferred tax is not recognised on temporary differences relating to goodwill which is non-amortisable for tax purposes and other items where temporarydifferences, except for acquisitions, have arisen at the date of acquisition without affecting the net profit orloss for the year or the taxable income. In cases where the tax value can be determined according to different taxation rules, deferred tax is measured on the basis of management’s intended use of the asset or settlement of the liability.Deferred tax assets are recognised, following anassessment, at the expected realisable value throughoffsetting against deferred tax liabilities or elimination in tax on future earnings.Deferred tax is measured on the basis of the tax rules and at the tax rates which, according to the legislation in force at the balance sheet date, will be applicable when thedeferred tax is expected to crystallise as current tax.PayablesLong-term payables are measured at cost at the time of contracting such liabilities (raising of the loan). The payables are subsequently measured at amortised cost where capital losses and loan expenses are recognised in the income statement as a financial expense over the term of the payable on the basis of the calculated effectiveinterest rate in force at the time of contracting the liability. Short-term payables are measured at amortised cost,normally corresponding to the nominal value of suchpayables.Cash flow statementThe cash flow statement of the Group is presented using the indirect method and shows cash flows from operating, investing and financing activities as well as the Group’scash and cash equivalents at the beginning and the endof the financial year. No separate cash flow statement has been prepared for the Parent because it is included in theconsolidated cash flow statement. Cash flows from operating activities are calculated as the operating profit/loss adjusted for non-cash operating items, working capital changes and income taxes paid.Cash flows from investing activities comprise payments in connection with fixed asset investments as well as purchase and sale, etc of intangible assets and property, plant and equipment.Cash flows from financing activities comprise of debt raised and repayments of short- and long-term loans as well as payment of dividend. Cash and cash equivalents comprise cash and short-term securities with aninsignificant price risk.Financial highlightsFinancial highlights are defined and calculated in accordance with “Recommendations & Ratios” issued by the Danish Society of Financial Analysts.The financial ratios have been calculated as follows:Gross margin:Gross profit x 100 / RevenueEBITDA margin:Earnings before interest, taxes, depriciation and amortization x 100 / Revenue Profit ration (EBIT):Earnings before interest, taxes x 100 / RevenueReturn on capital employed:Earnings before interest, taxes (EBIT) x 100 / Balance sheet total Solvency ratio:Equity at year end x 100 / Total assetsReturn on equity:Profit for the year x 100 / Average equity true Board of Directors’ and Executive Board’s reportWe have on this day presented the annual report for the financial year 01.01.25 - 31.12.25 for DEIF A/S. The annual report is presented in accordance with the Danish Financial Statements Act (Årsregnskabsloven).In our opinion, the consolidated financial statements and financial statements give a true and fair view of the group’s and the parent’s assets, liabilities and financial position as at 31.12.25 and of the results of the group’s and parent’s activities for the group’s financial year 01.01.25 - 31.12.25.We believe that the management’s review includes a fair review of the matters dealt with in the management’s review. The annual report is submitted for adoption by the general meeting. Skive Toke Foss Chair Malene Richter Christensen Ole Ravnborg Christian Nielsen CEO Birgitte Brinch Madsen Vice Chair Frederik Buciek Foss Gitte Jespersen Humphrey Lau Valdemar Foss Jacob Danielsen To the Shareholder of DEIF A/S Opinion We have audited the consolidated financial statements and the financial statements of DEIF A/S for the finan-cial year 1 January 2025 - 31 December 2025, which comprise income statement, balance sheet, statement of changes in equity and notes, including significant ac-counting policies, for the group and the company as well as the consolidated cash flow statement. The consoli-dated financial statements and the financial statements are prepared in accordance with the Danish FinancialStatements Act. In our opinion, the accompanying consolidated financialstatements and financial statements give a true and fair view of the group’s and the company’s financial position at 31 December 2025 and of the results of the group’s and the company’s operations and the consolidatedcash flows for the financial year 1 January 2025 - 31 December 2025 in accordance with the Danish Financial Statements Act. Basis for OpinionWe conducted our audit in accordance with Interna-tional Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are furtherdescribed in the ‘Auditor’s responsibilities for the audit of the consolidated financial statements and the financialstatements’ section of our report. We are independent of the group and the company in accordance with the International Ethics Standards Board for Accountants’International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our otherethical responsibilities in accordance with these require-ments and the IESBA Code.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management’s responsibilities for the consolidated financial statements and the financial statementsManagement is responsible for the preparation of the consolidated financial statements and the financial state-ments in accordance with the Danish Financial State-ments Act and for such internal control as managementdetermines is necessary to enable the preparation of consolidated financial statements and financial state-ments that are free from material misstatement, whether due to fraud or error.In preparing the consolidated financial statements and the financial statements, management is responsible for assessing the group’s and the company’s ability to continue as a going concern, disclosing, as applicable,matters related to going concern and using the going concern basis of accounting in preparing the consoli-dated financial statements and the financial statements unless management either intends to liquidate the group and the company or to cease operations, or has no real-istic alternative but to do so. Auditor’s responsibilities for the audit of the consolidat-ed financial statements and the financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the financial statements as a whole are free from materialmisstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guar-antee that an audit conducted in accordance with ISAsand the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are con-sidered material if, individually or in the aggregate, theycould reasonably be expected to influence the economic decisions of users taken on the basis of these consoli-dated financial statements and financial statements.As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain profes-sional scepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the consolidated financial statements and the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override ofinternal control.• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s and the company’s internal control.• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.• Conclude on the appropriateness of management’s use of the going concern basis of accounting inpreparing the consolidated financial statements and the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s and the company’sability to continue as a going concern. If we conclude that a material uncertainty exists, we are requiredto draw attention in our auditor’s report to the related disclosures in the consolidated financial statements and the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However, future events or conditions may cause the group and the company to cease to continue as a going concern.• Evaluate the overall presentation, structure and content of the consolidated financial statements and the financial statements, including the disclosures,and whether the consolidated financial statements and the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.• Obtain sufficient appropriate audit evidence regard-ing the financial information of the entities or business activities within the group to express an opinion on theconsolidated financial statements. We are responsiblefor the direction, supervision and performance of the group audit. We remain solely responsible for our auditopinion.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, includ-ing any significant deficiencies in internal control that we identify during our audit. Skive Beierholm 32895468 Statement regarding the management’s reviewManagement is responsible for the management’s review.Our opinion on the consolidated financial statements and the financial statements does not cover the man-agement’s review, and we do not express any form of assurance conclusion thereon.In connection with our audit of the consolidated financial statements and the financial statements, it is our respon-sibility to read the management’s review and in doing so consider whether the management’s review is materially inconsistent with the consolidated financial statements or the financial statements or our knowledge obtained during the audit, or otherwise appears to be materiallymisstated.Moreover, it is our responsibility to consider whether the management’s review provides the information required under the Danish Financial Statements Act.Based on the work we have performed, we conclude that the management’s review is in accordance with the consolidated financial statements and the financial state-ments and has been prepared in accordance with the requirements of the Danish Financial Statements Act. Wedid not identify any material misstatement in the man-agement’s review. Bjørn Jakobsen Jesper K. Viborg State Authorized Public Accountant State Authorized Public Accountant DEIF A/S Frisenborgvej 33 7800 Skive Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2025-01-01 2025-12-31 2024-01-01 2024-12-31 2026-05-04 Regnskabsklasse C, stor virksomhed 2026-05-04 15798416 DEIF A/S Frisenborgvej 33 7800 Skive Opinion Basis for Opinion 2026-05-04 mne24813 Resenvej 81 7800 Skive Danmark mne35413 32895468 Beierholm Resenvej 81 7800 Skive Danmark Nordea Bank Danmark A/S Advokat Kristian Dalsgaard Store Torv 6 7500 Holstebro 649 565 403 386