62572213 2025-01-01 2025-12-31 62572213 2025-01-01 2025-12-31 1 62572213 2025-01-01 2025-12-31 1 62572213 2025-01-01 2025-12-31 2 62572213 2025-01-01 2025-12-31 3 62572213 2025-01-01 2025-12-31 4 62572213 2025-01-01 2025-12-31 5 62572213 2025-01-01 2025-12-31 1 62572213 2025-01-01 2025-12-31 2 62572213 2024-01-01 2024-12-31 62572213 2025-12-31 62572213 2024-12-31 62572213 2024-12-31 fsa:ContributedCapitalMember 62572213 2024-12-31 fsa:OtherReservesMember 62572213 2024-12-31 fsa:OtherStatutoryReservesMember 62572213 2024-12-31 fsa:ProposedDividendRecognisedInEquityMember 62572213 2024-12-31 fsa:RetainedEarningsMember 62572213 2025-01-01 2025-12-31 fsa:ContributedCapitalMember 62572213 2025-01-01 2025-12-31 fsa:OtherReservesMember 62572213 2025-01-01 2025-12-31 fsa:OtherStatutoryReservesMember 62572213 2025-01-01 2025-12-31 fsa:ProposedDividendRecognisedInEquityMember 62572213 2025-01-01 2025-12-31 fsa:RetainedEarningsMember 62572213 2025-12-31 fsa:ContributedCapitalMember 62572213 2025-12-31 fsa:OtherReservesMember 62572213 2025-12-31 fsa:OtherStatutoryReservesMember 62572213 2025-12-31 fsa:ProposedDividendRecognisedInEquityMember 62572213 2025-12-31 fsa:RetainedEarningsMember iso4217:EUR xbrli:pure Mirian Horten Zierau The Board of Directors and the Executive Management Board have today considered and approved the Annual Report of Nilfisk A/S for the financial year 1 January - 31 December 2025. The Annual Report is presented in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company’s financial position at 31 December 2025 and of the results of its operations for the financial year 1 January - 31 December 2025. We believe that the management review is prepared in accordance with relevant laws and regulations and contains a fair review of the affairs and conditions referred to therein. We recommend the Annual Report for adoption at the Annual General Meeting. København Heidi Pontoppidan Schäffner CEO Jon Erik Ivar Sintorn Carl Fredrik Wilhelm Bandhold Heidi Pontoppidan Schäffner Chair Deputy Chair Wannie Kristina Trolle Hansen Marcus Faber Kappendrup Staff representative Staff representative To the shareholder of Nilfisk A/S Opinion We have audited the financial statements of Nilfisk A/S for the financial year 1 January – 31 December 2025, which comprise the income statement, balance sheet, statement of changes in equity, and notes, including a summary of significant accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31 December 2025 and of the results of its operations for the financial year 1 January – 31 December 2025 in accordance with the Danish Financial Statements Act. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional Requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor’s responsibilities for the audit of the financial statements" section of this auditor’s report. We are independent of the Entity 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 other ethical responsibilities in accordance with these requirements 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 financial statements Management is responsible for the preparation of financial statements that give a true and fair view in Accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Entity’s ability to continue as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Entity or to cease operations or has no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, 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 guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of 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 of internal 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 Entity’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 in preparing 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 Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures in the notes, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. • Plan and perform the audit of the financial statements to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for forming an opinion on the financial statements. We are responsible for the direction, supervision and review of the audit work performed. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Statement on the Management’s Review Management is responsible for the management review. Our opinion on the financial statements does not cover the management review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the management review and, in doing so, consider whether the management review is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the management review provides the information required by relevant law and regulations. Based on the work we have performed, we conclude that the management review is in accordance with the financial statements and has been prepared in accordance with the requirements in the relevant law and regulations. We did not identify any material misstatement of the management review. Copenhagen, Deloitte Statsautoriseret Revisionspartnerselskab 33963556 Niels Skannerup Vendelbo State-Authorised Public Accountant mne34532 Vincent Mendel Tran State-Authorised Public Accountant Nilfisk A/S Marmorvej 8 2100 Copenhagen 62572213 Copenhagen Weidekampsgade 6 2300 Copenhagen EUR million 2025 2024 2023 2022 2021 Income statement Revenue 514.3 513.2 490.9 566.5 549.3 Operating profit/loss -43.8 19.3 0.8 8.5 29.6 Financial items, net -11.9 -14.2 -3.3 -9.8 -15.5 Profit/loss before income taxes 20.1 80.2 39.0 34.5 58.5 Profit/loss for the year 35.2 73.6 38.2 34.9 56.4 Balance sheet Total non-current assets 421.4 510.1 515.0 544.0 550.3 Total assets 743.7 701.1 665.5 716.3 729.9 Investments in tangible assets 3.1 3.3 7.5 3.2 1.7 Equity 341.0 304.7 230.7 204.3 163.9 Key ratios Operating profit margin % -8.5 3.8 0.2 1.5 5.4 Return on equity % 10.3 24.2 16.6 17.1 34.4 Solvency ratio % 45.9 43.5 34.7 28.5 22.5 The ratios have been prepared in accordance with the recommendations and guidelines issued by the Danish Finance Society. Significant events in 2025 The performance of Nilfisk A/S is to a large extend following the performance of the Nilfisk Group due to Nilfisk A/S’ position in the Nilfisk Group structure. Accordingly, key Nilfisk Group events are considered relevant to describe in this section. 2025 was a year of disciplined execution and clear choices. From the outset of the year, Nilfisk A/S remained focused on delivering on the commitments outlined in its strategic roadmap, despite operating in a market environment marked by macroeconomic uncertainty, external disruptions, and uneven regional conditions. Against this backdrop, Nilfisk A/S delivered on the three core commitments set at the beginning of the year: improving the competitive position in North America, enhancing the operating model, and executing structural efficiency improvements. Nilfisk A/S delivered a resilient financial performance, reflecting the underlying strength of the business, though with notable regional variation. Americas and APAC regions delivered consistent revenue performance while EMEA slowed down. Restructuring initiatives and strategic decisions in Nilfisk Group led to significant additional costs mainly related to severance costs related to these initiatives, impairment of intangible assets and onerous contracts. Research and development were mainly impacted by impairments and onerous contracts. Administrative costs were mainly impacted by severance costs. Nilfisk Group's commitment to address structural challenges decisively has strengthened the foundation of the business. Following a year of significant product development activity in 2024, 2025 was focused on execution. Efforts centered on rolling out and scaling recently introduced products, driven by close cooperation between product, sales, service, and operations teams. In addition, Nilfisk A/S introduced several new products during the year, including an entirely new range of next-generation vacuum cleaners, the VP series, featuring some of the best-selling models made with recycled plastics. The company also launched the CS7500 compact sweeper-scrubber, developed based on extensive customer insights to meet diverse needs. In 2025, Nilfisk Group continued to embed sustainability into its work and value creation for customers. Greenhouse gas emissions were reduced across scopes 1, 2, and 3, and the Group strengthened its climate ambitions by updating its science-based targets, committing to Net Zero by 2040. Nilfisk Group sustainability performance was recognized externally, earning an EcoVadis Gold Medal for the fourth consecutive year and an improved CDP Climate Change score from A- to A, the highest possible rating. Sustainability considerations remained integrated across product development and operations, supporting customer value creation and addressing the growing demand for efficient and sustainable cleaning solutions. Customer inquiries related to sustainability more than doubled during the year, confirming that Nilfisk’s long-standing commitment in this area remains a competitive strength and is increasingly important to its customers. Development in the year Nilfisk A/S revenue increased by 0.2% to 514.3 mEUR (2024: 4.5% to 513.2 mEUR), gross profit decreased by 16.3% to 124.0 mEUR (2024: increased by 16.4% to 148.1 mEUR) and operation profit/loss decreased by 63.1 mEUR resulting in a loss of 43.8 mEUR (2024: increased by 18.5 mEUR resulting in a profit of 19.2 mEUR). Result for the year decreased by 52.2% to 35.2 mEUR (2024: increased 92.7% to 73.6 mEUR). Result for the year was significantly negatively affected by restructuring initiatives and strategic restructuring costs. Management considers that the financial result for 2025 did not fully meet expectations set out in the outlook for 2025, mainly due to the negative effect from restructuring initiatives and strategic restructuring costs. Key accounting estimates and judgments When preparing the financial statements, the use of reasonable estimates and judgments is an essential part. Given the uncertainties inherent in our business activities, the Executive Management Board makes a number of accounting estimates and judgments. The estimates and judgments are based on assumptions which form the basis for recognition and measurement of our assets, liabilities, cash flows and related disclosures. Estimates and judgments are regularly reassessed. Key accounting estimates are expectations of the future based on assumptions, that to the extent possible are supported by historical experience, customer demands, competitor actions and other reasonable expectations. Estimates, by their nature, are associated with uncertainty and unpredictability. The actual amounts may differ from the amounts estimated as more detailed information becomes available. The Executive Management Board believes that the estimates are reasonable, appropriate and the most likely outcome of future events under the given circumstances. Key accounting judgments are made when applying accounting policies. Key accounting judgments are judgments made that can have a significant impact on recognition, classification and disclosures of amounts in the financial statements. Reference is made to note 20 for details on areas subject to significant accounting estimates and judgments. Nilfisk’s high-impact business risks Description of the five risk areas identified as high-impact risks and related risk mitigation. Risk Risk description Risk mitigation Commoditization If we fail to adapt to changes in customer behavior and We monitor customer behavior via segment trends and development of our products and services, our ability to purchasing loyalty. Nilfisk responds to changes in customer and competition execute on our growth strategy will be impaired and the behavior with a strategy focused on lifecycle services, long-term financial results of the Group will be impacted. customer-centric innovation, and our sustainability Customer demand is changing towards low-price “good-commitment. With our value proposition and strategic enough” products. At the same time, competition is intense, priority to lead with innovation and sustainable products, we and low-cost competition might reach a level at which add value beyond the machine and deliver cleaning solutions customers would be resistant to pay a premium for that blend into operations while integrating digital services, higherquality products. The Nilfisk Group’s competitors collectively increasing the value of clean. We leverage include various large global and regional enterprises as well strengths from our quality-focused brand and our wide as smaller regional or local companies. Our operational product portfolio range with broad customer access. We results and financial position may be negatively impacted if scale benefits due to our size and geographical coverage. Nilfisk products do not satisfy customer demand. Economic and Adverse and unstable economic conditions including a risk of We closely monitor developments in our markets and the global economic conflicts may negatively impact our financial global economic situation to be able to respond in a timely political position, increase costs, and decrease demand for Nilfisk manner to any adverse developments. We also mitigate instability products, reducing sales in a downward direction. At the possible negative macroeconomic changes by hedging and same time, major social or political instability and changes maintaining variability in our cost base as well as establishing may disrupt the cleaning industry and our business. a certain degree of flexible production footprint. Cyber and IT Nilfisk’s information technology systems are subject to risk of We have implemented procedures and management damage or interruption from power outages, computer and processes to ensure the necessary availability of critical IT security telecommunications failures, malware, catastrophic events, systems and services. Furthermore, we have developed and and user errors. Errors made due to lack of user awareness actioned an IT security policy to prevent intentional damage or deliberate misuse, such as individual attempts to gain to our systems and limit access to critical data and systems. access to systems, are among the risks Nilfisk faces. Finally, initiatives have been planned and implemented to Inadequate management of changes to systems or secure the digital business, strengthen the infrastructure inadequate service together with ineffective measures to platform, enhance IT services, and ensure recovery business deter, prevent, detect and react to such attempts might continuity plans, including preparing for the Network and expose Nilfisk to risks. In addition, Nilfisk is faced with the Information Security Directive (NIS2) audit in 2026. threat of security breaches (viruses, ransomware, etc.) such as attempts to hack our information technology systems. Failure to Technological developments and improvements are key to We established a strong value proposition linked to strategic remaining competitive in the markets. If one or more Nilfisk priorities and optimization opportunities, focused on innovate or competitors are able to develop and gain exclusive access to customer-centric innovation and leading with sustainable maintain groundbreaking technologies, this could make it difficult or products, optimizing customer value while also ensuring relevant product increasingly costly for the Nilfisk Group to compete technology enabled value creation. We consistently monitor effectively on the markets. customer trends against preferred technologies and portfolio cooperate with leading technology partners and universities. This to ensure that the product portfolio is updated and relevant to our customers. Data integrity, There is a risk of suboptimal decisions and to some extent In addition to an ongoing assessment of our IT infrastructure loss of business due to a lack of accurate, integrated and and systems, several initiatives have been launched. These quality, and complete data. Failure to protect data privacy and comply initiatives include a master data improvement project, privacy with legislation (GDPR) will also have a negative impact on standardization of ERP systems (SAP), and standardization of our business processes. The initiatives are progressing well. To protect data privacy, a number of systems have been implemented, e.g. Workday, Salesforce.com, and Service Max. The data in the systems is audited on a regular basis, and employees have received adequate training in data management. Outlook The range for Nilfisk Group organic revenue growth is expected to be -1% to 2%, driven by diverse performance across business segments and regions. The range for the Nilfisk Group EBIT margin before special items is expected to be in the range of 7% to 9%, driven by an increased focus on profitability across the business as well as tariffs being offset with supply chain activities. The range for the operating profit/loss for Nilfisk A/S is expected to be between 40 mEUR to 60 mEUR. Potential trade barriers continue to present additional uncertainty for the Nilfisk Group, hence also Nilfisk A/S. The financial outlook for 2026 is based on several assumptions including: • Stable economic climate • Trade wars do not intensify and/or lead to a recession Events after the balance sheet date Following the announcement in December 2025 of Freudenberg Home and Cleaning Solutions GmbH’s intention to acquire Nilfisk, Nilfisk published announcement no. 1/2026 on January 7, 2026, regarding the publication of the offer document on the voluntary takeover offer made by Freudenberg. At the date of approval of this Annual Report, the offer was completed and accepted by the shareholders. On January 16, 2026, Nilfisk received the Eastern High Court’s (Østre Landsret) ruling in the insurance dispute related to the destruction of the US distribution center following a tornado. Read more in Note 16 Provisions, Note 17 Liabilities, and Note 18 Contingent liabilities, securities, and contractual obligations. Other than as set out above, we are not aware of events subsequent to December 31, 2025, that materially affect the assessment of the financial statements. Knowledge resources To ensure high productivity and competitiveness Nilfisk A/S uses the latest technology in production, which demands resources with a high level of competence. Consequently, it is important for Nilfisk A/S’ to attract and maintain talented resources both from an internal workforce perspective and from external business partners, carrying a high level of engineering expertise within innovative cleaning products and solutions, and additional capabilities that support our journey. Development activities In the financial year 2025 Nilfisk A/S spent 21.7 mEUR on development projects and software compared to 32.0 mEUR in 2024. The decrease is in line with the strategic roadmap focused on execution. Core activity, research and development and knowledge resources It was in 1906 that Peder Andersen Fisker established Nilfisk, inspired by his love of knowledge and ambition to build a company that made the best electrical engines. Since then, we have been committed to delivering innovative cleaning solutions and growing our business to lead the industry. Nilfisk A/S’ activities are unchanged compared to 2024. Statutory Report on Corporate Social Responsibility under Section 99a of the Danish Financial Statements Act (DFSA) Nilfisk A/S is subject to the sustainability reporting requirements under §99a of the DFSA and fulfils these requirements by reference to the CSRD-compliant sustainability statement included in the Nilfisk Holding A/S Group Annual Report In pursuance of section § 99a(8) of the DFSA, The Group Annual report including the sustainability statement may be obtained at Nilfisk Holding A/S (CVR 38 99 88 70), Marmorvej 8, 2100 København Ø or at https://investor.nilfisk.com/financial-information/financial-reports-presentations. Data ethics policy statement As part of Nilfisk’s reporting obligations a Data Ethics Statement is made available at https://www.nilfisk.com/media/wjhapsgq/en-nilfisk-dk-data-ethics-policy-2025.pdf as required by section 99d of the DFSA. 514300000 513200000 390300000 365100000 124000000 148100000 49200000 29700000 54600000 57300000 64300000 42000000 300000 200000 -43800000 19300000 75800000 75100000 14400000 18400000 27700000 27900000 -1400000 4700000 20100000 80200000 -15100000 6600000 35200000 73600000 0 0 37200000 32400000 13600000 17200000 22700000 30800000 500000 700000 7900000 9400000 200000 200000 3800000 4300000 100000 400000 307200000 306300000 3800000 3800000 23100000 7500000 0 96200000 1300000 900000 421400000 510100000 65400000 62500000 9900000 10800000 194000000 105300000 20900000 7100000 6100000 5200000 26000000 100000 322300000 191000000 743700000 701100000 67000000 67000000 -300000 -1400000 29000000 25300000 245300000 213800000 341000000 304700000 28900000 1400000 5300000 228900000 6100000 8000000 0 700000 11400000 237600000 238700000 45300000 33800000 41900000 70100000 46700000 4000000 3900000 15800000 19600000 362400000 157400000 402700000 396400000 743700000 701100000 67000000 -1400000 25300000 0 213800000 304700000 0 0 0 0 35200000 35200000 0 0 600000 0 -1000000 -400000 0 -1300000 0 0 0 -1300000 0 -300000 0 0 0 -300000 67000000 -300000 29000000 0 245300000 341000000 1 Revenue Revenue by segments and geographical regions EUR million 2025 2024 Professional 302.9 305.5 Service 94.9 89.9 Specialty 35.7 37.1 Consumer 80.8 80.7 514.3 513.2 EMEA 419.6 434.9 Americas 62.9 50.3 APAC 31.8 28.0 514.3 513.2 Professional Business covers all revenue from sales of professional machines including Private Label, Service Business contains service offering, including service packages and parts, accessories, and consumables (PAC) for Professional Business, Specialty Business contains IVS and Nilfisk Food. Service and PAC are included for Nilfisk Food. Consumer Business covers consumer machines, service, and PAC related to consumer products. Geographically, Nilfisk has sales companies located in approximately 40 countries and reaches more than 100 countries through direct sales and dealers. EMEA includes entities within Europe, Americas includes entities within North America and APAC includes entities within Asia. 2 Amortization, depreciation and impairment Split on cost functionsEUR million 2025 2024 Cost of sales 0.9 1.1 Research and development costs 23.0 10.4 Sales and distribution costs 2.8 2.6 Administrative costs 7.1 9.5 33.8 23.6 Hereof depreciation of right-of-use assets 4.2 4.1 Right-of-use assets depreciation is split with 0.5 mEUR related to Cost of sales, 2.4 mEUR related to Sales and Distribution costs and 1.3 mEUR related to Administrative costs. 3 Staff costs EUR million 2025 2024 Wages and salaries 87.0 87.5 Long-term incentive program 0.4 0.2 Social security costs 0.7 0.6 Pensions 3.2 3.4 91.3 91.7 Staff costs recognized as follows: Cost of sales 7.5 7.9 Research and development costs 25.6 21.5 Sales and distribution costs 26.3 28.8 Administrative costs 31.9 33.5 91.3 91.7 350 380 Remuneration to Board of Directors - - Remuneration to Executive Management Board EUR million 2025* 2024** Salary and pension 0.8 - Annual bonus 0.1 - 0.9 - *Amounts disclosed in the remuneration to Board of Directors table also includes payments for former CEO's that have been a part of the Executive Management Board during the reporting period. Salary and pension also include termination costs during garden leave related to former CEO's **Remuneration to Executive Management is not disclosed for 2024 as there has only been one member during 2024. In 2025 an long-term incentive program has been established for the Executive Management Board and selected key employees in line with 2024 and 2023. In the programs the Executive Management Board and selected key employees have been awarded performance shares based on performance measures on EBITDA before special items, Total Shareholder Return (TSR), and Sustainability targets. The Performance Shares will be converted to Nilfisk Holding A/S shares after completion of the performance period. For each performance share, the employee will receive one Nilfisk Holding A/S share. 4 Other operating income, net EUR million 2025 2024 Other operating income Service fee for Payroll & HR -0.1Other income 0.3 0.20.3 0.3 Other operating expenses Other expenses --0.1--0.1 5 Dividends from and investments in subsidiaries and associated companies Subsidiaries Associated companies EUR million 2025 2024 2025 2024 Dividends 73.8 73.1 2.0 2.0 Costs, 1 January 306.3 313.7 3.8 3.8 Exchange rate adjustments -0.5-0.3- - Additions -0.7- - Disposals --4.9- - Impairment losses/gains 1.4 -2.9- - Costs, 31 December 307.2 306.3 3.8 3.8 Impairment loss for the year comprised loss on investment in one entity and reversal of previous impairment loss on investment in a total of two entities. See note 20 for more information. Group companies EMEA Americas Denmark Nilfisk S.R.L. Argentina Nippon Investment Corporation ApS Denmark Nilfisk Equipamentos de Limpeza Ltda. Brazil Nilfisk Canada Company Canada Rest of EMEA Nilfisk Chile S.p.A. Chile Nilfisk GmbH Austria Nilfisk de Mexico S. de R.L. de C.V. Mexico Nilfisk N.V./S.A. Belgium Nilfisk de Mexico Manufacturing S. de R.L. de C.V. Mexico Nilfisk s.r.o. Czech Rep. Nilfisk S.A.C. Peru Nilfisk Oy Finland Nilfisk U.S Holding Inc. US Nilfisk S.A.S. France Nilfisk Inc. US Nilfisk-Advance Eppingen GmbH (under liquidation) Germany Nilfisk Robotics Inc. US Nilfisk GmbH Germany Hathaway North America Inc. US Nilfisk Hellas Single Member S.A. Greece Nilfisk Pressure-Pro, LLC. US Nilfisk Production Kft. Hungary Nilfisk Commercial Kft. Hungary APAC Nilfisk Ltd Ireland Nilfisk Pty. Ltd. Australia Nilfisk S.p.A. Italy (Dongguan) Viper Cleaning Equipment Co. Ltd. China Nilfisk B.V. Netherlands Nilfisk Cleaning Equipment (Shanghai) Co. Ltd China Nilfisk AS Norway Suzhou Nilfisk Research and Development Co. Ltd. China Nilfisk Polska Sp.z.o.o. Poland Nilfisk Ltd. Hong Kong Nilfisk Lda. Portugal Nilfisk India Private Ltd. India Nilfisk-Advance S.R.L. Romania Nilfisk Inc. Japan Nilfisk s.r.o. Slovakia Nilfisk Korea Co. Ltd. Korea Nilfisk SA. Spain Nilfisk Sdn Bhd Malaysia Nilfisk AB Sweden Nilfisk Limited New Zealand Nilfisk AG Switzerland Nilfisk Pte. Ltd. Singapore Nilfisk Profesyonel Temizlik Ekipmanlari Ticaret. A.S. Türkiye Nilfisk Ltd. (Branch) Taiwan Nilfisk Trading LLC UAE Nilfisk Co. Ltd. Thailand Nilfisk Ltd. United Kingdom Nilfisk Company Ltd. Vietnam (under liquidation) Floor Cleaning Machines Ltd. United Kingdom Nilfisk Ltd. (Branch) Macau Industrial Cleaning Machines Ltd. United Kingdom Associates M2H S.A. (49%) France CFM Lombardia S.r.l. (33%) Italy Thoro LLC (27%) US Ownership below 100% is disclosed in brackets. 6 Financial items Financial income Financial expenses EUR million 2025 2024 2025 2024 Interest, external 4.2 4.2 18.5 27.0 Interest, intercompany 8.0 8.2 - - Foreign exchange gains/losses - - 9.2 0.9 Disposal and impairment of investments in subsidiaries 1.4 - - 4.7 Derivative financial instruments gains/losses 2.2 6.0 - - 15.8 18.4 27.7 32.6 7 Income taxes EUR million 2025 2024 Tax recognized in the income statement Current tax - -1.3 Deferred tax 15.6 -3.6 Adjustment prior years, current tax 0.4 - Adjustment prior years, deferred tax - -1.7 Withholding tax -0.9 - 15.1 -6.6 3100000 600000 32100000 73000000 35200000 73600000 9 Intangible assets Develop-ment pro-Develop-jects and ment software Other projects in intangible EUR million Goodwill completed Software progress assets Total Costs, 1 January 2025 31.5 137.9 81.4 34.0 13.7 298.5 Exchange rate adjustments - -0.1 -0.1 -0.1 0.1 -0.2 Additions - 0.9 0.6 20.2 - 21.7 Disposals - -18.7 -1.2 -1.5 -2.7 -24.1 Transferred between classes of assets - 25.8 0.9 -26.7 - - Costs, 31 December 2025 31.5 145.8 81.6 25.9 11.1 295.9 Amortization and impairment, 1 January 2025 -31.5 -105.5 -64.2 -3.2 -13.0 -217.4 Exchange rate adjustments - 0.2 - - - 0.2 Amortization for the year - -12.3 -5.0 - -0.2 -17.5 Impairment - -9.7 - -1.5 -0.1 -11.3 Disposals - 18.7 1.2 1.5 2.7 24.1 Amortization and impairment, -31.5 -108.6 -68.0 -3.2 -10.6 -221.9 31 December 2025 Carrying amount, 31 December 2025 - 37.2 13.6 22.7 0.5 74.0 Amortization in years 3-10 3-8 3-8 - 3-15 In 2025, impairments of intangible assets of 11.3 mEUR were recognized, mainly related to the comprehensive strategic review of the business resulting in impairments related to development projects, software and other intangible assets that will not be part of the future product portfolio. 10 Property, plant and equipment Land and Plant and Tools and Assets under EUR million buildings machinery equipment construction Total Costs, 1 January 2025 22.1 0.4 16.4 0.4 39.3 Exchange rate adjustments -0.1 - 0.1 - - Additions 1.8 - 1.1 0.2 3.1 Disposals - - -1.0 - -1.0 Transferred between classes of - - 0.5 -0.5 assets - Costs, 31 December 2025 23.8 0.4 17.1 0.1 41.4 Depreciation and impairment, 1 January 2025 -12.7 -0.2 -12.1 - -25.0 Depreciation for the year -3.2 - -1.8 - -5.0 Disposals - - 0.6 - 0.6 Depreciation and impairment, 31 December 2025 -15.9 -0.2 -13.3 - -29.4 Carrying amount, 31 December 2025 7.9 0.2 3.8 0.1 12.0 Hereof right-of-use assets 7.9 0.1 1.4 - 9.4 Depreciation in years 3-10 3-8 3-10 N/A 11 Deferred tax EUR million 2025 2024 Deferred tax assets and liabilities Deferred tax assets, January 1 7.5 12.8 Deferred tax liabilities, January 1 - - Deferred tax recognized in the income statement 15.6 -5.3 23.1 7.5 Recognized deferred tax: Deferred tax assets, December 31 23.1 7.5 Deferred tax liabilities, December 31 - - 23.1 7.5 Specification of deferred tax assets and liabilities: Intangible assets -0.5 -4.4 Tangible assets 6.7 6.5 Provisions 2.7 0.4 Tax losses 14.2 5.0 23.1 7.5 12 Inventories EUR million 2025 2024 Raw materials, consumables and goods for resale 1.0 1.1 Finished goods 64.4 61.4 65.4 62.5 Write-down on inventories, December 31 -2.4 -2.0 13 Financial Instruments 2025 2024 EUR million Derivative financial instruments, January 1 -0.9 -2.0 Value adjustment recognized in equity 1.4 0.5 Value adjustment recognized in profit and loss -1.5 0.6 Derivative financial instruments, December 31 -1.0 -0.9 14 Prepayments Prepayments consist of prepaid expenses concerning rent, insurance and subscriptions. 15 Equity The share capital consists of 5,000,000 shares. The share capital and the number of shares has not changed in the last 5 years. 16 Provisions More than 1 EUR million Within 1 year year Warranty provisions 0.8 - Provision insurance dispute 23.3 - Other provisions 4.6 0.2 28.7 0.2 Provisions increased by 28.5 mEUR compared to 2024, mainly relating to the insurance dispute with respect to the insurance payout for the destruction of the Group’s US distribution center following a tornado and restructuring provisions. Read more in Note 18 Contingent liabilities, securities, and contractual obligations. 17 Liabilities Maturity EUR million Within 1 year 1-5 years After 5 years Interest-bearing loans and borrowing 238.7 0.3 5.0 Lease liabilities 4.0 5.5 0.6 Payables to subsidiaries 70.1 - - 312.8 5.8 5.6 Based on the conditions existing at 31 December, 2025, it is required to assess if Nilfisk would have been in breach of the loan covenant had the facilities not been amended. In January 2026, the lending banks granted Nilfisk an amendment to the covenant. The amendment was provided in due time and ensures that no legal breach nor event of default has occurred, and the facilities are therefore not expected to become repayable within the next twelve months from December 31, 2025. As the amendment was provided subsequent to December 31, 2025, it is treated as a non-adjusting event. Therefore, the loan is required to be classified as a current liability at year end, as the classification of borrowings must reflect the lender’s contractual rights at December 31, 2025. This reclassification does not reflect an expectation nor a requirement from the lending banks that the debt will be repaid within the next twelve months. Nilfisk A/S maintains adequate liquidity, continues to comply with all other financing conditions, and retains full access to both facilities. 18 Contingent liabilities, securities, and contractual obligations Claims filed against Nilfisk A/S On October 15, 2022, Nilfisk’s insurer filed a lawsuit in Denmark against Nilfisk with respect to the insurance payout for the destruction of the US distribution center following a tornado. The Court of first instance ruled in favor of Nilfisk. The insurer subsequently appealed the ruling, and Nilfisk received the ruling on January 16, 2026, from the Eastern High Court (Østre Landsret), which finds in favor of the insurer. Nilfisk disagrees with the ruling, and based on external legal advice, will apply for leave to appeal the decision to the Supreme Court. The insurer’s total claim was reduced from 19 mEUR to 17 mEUR excluding interest and legal fees, corresponding to a total exposure of approximately 23.3 mEUR including interest and legal fees. Nilfisk has recognized a provision covering the full estimated exposure of this dispute. Claims filed against Nilfisk Group On September 15, 2022, a claim was filed against Nilfisk by the owner of the US distribution center building with respect to contractual obligations related to terminating the contract. The resulting costs may exceed the insurance coverage that has already been paid to the owner of the US distribution center building. The District Court found that Nilfisk was in material breach of its contractual obligations and awarded damages to the owner of the US distribution center building in the amount of 13.8 mEUR excluding post-judgment interest and lawyers’ fees. Nilfisk disagreed with the Court’s rulings and appealed to the Court of Appeals. Nilfisk was granted a stay of execution of the Court’s ruling on damages and has posted security for the damages awarded by the Court. The Court of Appeals issued its opinion on October 17, 2025, by which it decided to remand 4.7 mEUR of the awarded damages to the District Court, as the Court of Appeals found that the District Court’s calculations of this amount were not explained in a way that allowed the Court of Appeals to fully review whether this portion of the award is supported by substantial evidence. Nilfisk has provided for this dispute based on external legal assessment and the Executive Management Board’s best estimate. The Executive Management Board continues to see a degree of uncertainty related to potential costs for these claims. Depending on the final outcome, an adverse decision may impact special items. Other contingent liabilities Nilfisk A/S is engaged in certain other disputes, legal proceedings, and inquiries from authorities, including tax authorities, the outcome of which is not expected to materially impact the company’s financial position. Nilfisk A/S has contractual obligations toward a third party with a nominal value of 3.4 mEUR (2024: 0 mEUR). Furthermore, Nilfisk A/S has issued other guarantees towards third parties with a total nominal value of 2.1 mEUR (2024: 2.0 mEUR). Nilfisk A/S has entered into contractual operational lease agreements relating to IT and office equipment. Total operating lease commitments at the balance sheet date amount to 1.6 mEUR. EUR million Within 1 year 1-5 years Operating leasing obligations 0.9 0.7 0.9 0.7 Nilfisk A/S is taxed jointly with all Danish entities of the Nilfisk Holding A/S Group. As part of the joint taxation, Nilfisk A/S is liable with other companies in the joint taxation scheme for Danish corporate taxes on corporate income taxes, dividend, interest, and royalties within the joint taxation group. Nilfisk A/S is issuing parent company guarantees for local rental agreements and local credit facilities. Nilfisk A/S guarantees for certain subsidiaries that are not audited on an annual basis. 19 Related parties Nilfisk A/S’ parent company is Nilfisk Holding A/S, which owns 100% of Nilfisk A/S. Other related parties comprise all subsidiaries and associated companies. In addition, the members of the Board of Directors and the Executive Management Board are considered to be related parties. All related parties’ transactions are made at market terms. 20 Key accounting estimates and judgments Deferred Tax The Executive Management Board’s assessment of the recoverability of the deferred tax assets is based on taxable income projections which contain estimates of and tax strategies for the future taxable income for the next 5 years taking into account the general market conditions and the future development outlook. The projections are based on budget and mid-term targets, and are inherently subject to uncertainty, as the realization of the projections are dependent on the outcome of future events. In the event that actual future taxable profits generated are less than expected and depending on the tax strategies that may be able to be implemented, impairment of the deferred tax assets may be required. It is the Executive Management Board’s assessment that the budgets and mid-term targets are achievable and support the recognized deferred tax assets. Development projects Development projects/products completed and development projects/products in progress include capitalized development costs for projects that support our strategi. The value of development projects is dependent on a number of factors, including the timely and successful completion of in-progress development projects as well as the Nilfisk Group’s ability to successfully commercialize completed development projects/products. Since the products are under development or in the early stages of the product life cycle, any assessment of market potential, product performance and viability, customer demand, potential impact from technological innovations and competitor actions, marketing and services cost, the ability to scale production and reduce production costs etc. is inherently subject to uncertainty. These uncertainties are assessed throughout the maturity of the projects and as such, the risk is reduced the closer the projects get to the completion stage. Where possible, the estimates are based on past experience but are also dependent on the outcome of future events, which will be highly project dependent. It is the Executive Management Board’s assessment that significant market potential exists, and that the value-in-use of development projects completed and development projects in progress exceed the carrying amounts under the assumptions mentioned above. Impairment of intangible assets The assessment of impairment and recoverable amounts involves estimates and judgments made by management based on expectations of future events. Estimates are expectations of the future based on assumptions that to the extent possible are supported by historical experience, customer demands, competitor actions, and other reasonable expectations. Estimates, by their nature, are associated with uncertainty and unpredictability. The actual amounts may differ from the amounts estimated as more detailed information becomes available. The Executive Management Board believes that the recognized impairments are reasonable, appropriate, and the most likely outcome of future events under the given circumstances. Investments in subsidiaries Investments in subsidiaries are measured at costs. If there is any indication of impairment of the investment, impairment testing is carried out using a discounted cashflow. The discounted cashflow model are based on budget and mid-term targets, that inherently are subject to uncertainty, as the realization of the budget assumptions are dependent on the outcome of future events. Included in the calculation is the expected growth rate, WACC and perpetuity. If the indication of impairment no longer exists or has decreased, the recoverable amounts is estimated to determine how much of the impaired amount should be reversed. 21 Events after the balance sheet date Please refer to Events after the balance sheet date in the Note 17 Liabilities and Note 18 Contingent liabilities, securities, and contractual obligations. Other than as set out in Note 17 Liabilities and Note 18 Contingent liabilities, securities, and contractual obligations, we are not aware of events subsequent to December 31, 2025 that materially affect the assessment of the financial statements. General accounting policies The financial statements for Nilfisk A/S are prepared in accordance with the Danish Financial Statements Act for accounting class large C companies. The Annual Report was presented in EUR rounded to nearest EUR 1,000,000 with one decimal. A DKK/EUR exchange rate of 7.4689 (2024: 7.4578) has been applied. Nilfisk A/S is a public company domiciled in Denmark. The shares in Nilfisk A/S are held by Nilfisk Holding A/S, which is the parent company in the Nilfisk Group. In pursuance of section 112(3,2) of the Danish Financial Statements Act, no consolidated financial statements have been prepared. The company is included in the Group Annual Report of the parent company Nilfisk Holding A/S (CVR 38 99 88 70). The Group Annual report may be obtained at Nilfisk Holding A/S, Marmorvej 8, 2100 København Ø or at https://investor.nilfisk.com/financial-information/financial-reports-presentations. In pursuance of section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The accounting policy described is applied consistently during the financial year and for the comparative figures. Recognition and measurement Assets are recognized in the balance sheet when it is probable as a result of a prior event that future economic benefits will flow to the Entity, and the value of the asset can be measured reliably. Liabilities are recognized in the balance sheet when the Entity has a legal or constructive obligation as a result of a prior event, and it is probable that future economic benefits will flow out of the entity, and the value of the liability can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial recognition is affected as described below for each financial statement item. Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and measurement. Income is recognized in the income statement when earned, whereas costs are recognized by the amounts attributable to this financial year. Translation of transactions and balances On initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction date. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the balance sheet date are translated using the exchange rate at the balance sheet date. Exchange differences that arise between the rate at the transaction date and the rate in effect at the payment date, or the rate at the balance sheet date are recognized in the income statement as financial income or financial expenses. Property, plant and equipment, intangible assets, inventories and other non-monetary assets that have been purchased in foreign currencies are translated using historical rates. Income Statement Revenue Revenue from sale of goods for resale and finished goods and service is recognized in the income statement when transfer of control of products or services to a customer has taken place. Sales are recognized when control of the goods has transferred, being when the goods are delivered to the customer, and there is no unfulfilled obligation that could affect the customers’ acceptance of the products. Revenue from Services and PAC, which includes service packages relating to products and contracts as well as sales of parts, consumables and accessories, is recognized concurrently with the supply of those services. Depending on the type of contract, service revenue is recognized over time or at a point in time. Some contracts include multiple deliverables, such as the sale of equipment and related installation services. However, the installation is simple and does not include an integration service and could be performed by another party. It is therefore not accounted for as a separate performance obligation. Where the contracts include multiple performance obligations, the transaction price was allocated to each performance obligation based on the stand-alone selling prices. Where these were not directly observable, they were estimated based on expected cost-plus margin. Revenue is measured at the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts granted are recognized in the revenue.Cost of sales Cost of sales comprises costs incurred to achieve the revenue for the year. Cost of sales includes direct and indirect costs of raw materials and consumables; salaries; maintenance, depreciation and impairment of production plant; and costs and expenses relating to the operation, administration and management of factories. Also included are inventory write-downs. Research and development costs Clearly defined and identifiable development projects for which the technical feasibility, adequacy of resources and a potential future market or internal utilization can be demonstrated, and where it is intended to manufacture, market or utilize the project, are recognized as intangible assets. It provides that the costs can be reliably determined, and that there is also adequate certainty that the future earnings or net selling prices can cover carrying amount as well as the development costs necessary for finalizing the project. Other development costs are expensed in the income statement as incurred. Capitalized development projects are measured at costs less accumulated amortization and impairment losses. The costs include wages, amortization and other costs relating to the Nilfisk A/S development activities. On completion of the development work, development projects are amortized on a straight-line basis over their estimated useful life from the date the asset is available for use. The amortization period is 3-10 years. The amortization base is reduced by any impairment losses. Sales and distribution costs Sales and distribution costs comprise costs relating to the sale and distribution of products, including salaries, sales commissions, advertising and marketing costs, depreciation and impairment, etc. Administrative costs Administrative expenses comprise expenses incurred for management and administration of the company, including expenses for the administrative staff and Management, stationery and office supplies as well as depreciation and amortization. Long term incentive programs Performance share program Nilfisk A/S long-term incentive programs include a performance share program and a phantom share program for Nilfisk Leadership Team and selected key employees. The performance share program is accounted for as an equity-settled share-based payment to employees and measured at the fair value of the option. The Total Shareholder Return (TSR vesting condition) is measured at grant date, whereas estimated EBITDA and RoCE (vesting conditions) will be updated based on the plans approved by the board. The fair value is expensed on a straight-line basis over a period of three years. At the end of the period the participants will be awarded shares corresponding to the targets achieved. Warrant program The warrant program is accounted for as an equity-settled share-based payment to employees and measured at the fair value of the option. The fair value of the program is measured at grant date. The fair value is expensed on a straight-line basis over a period of three years. At the end of the period the participants will have the right to convert each warrant into one share, provided applicable conditions are fulfilled. Other operating income, net Other operating income, net comprises income and expenses of secondary nature as viewed in relation to the entity’s primary activities, hereby sale of subsidiaries and gain and losses of intangible and tangible assets. Gain and losses of intangible and tangible assets is recognized as the sales price deducted with expenses related to the sales and the recognized value at the point of sale. Income from investments in subsidiaries and associated companies Dividends from investments in subsidiaries and associated companies are recognized in the income statement in the year the dividends are declared. Financial items Financial income comprises interest, dividends, gains on receivables and transactions denominated in foreign currencies, amortization of financial assets, and allowances under the Danish tax prepayment scheme, etc. Positive changes in the fair value of derivative financial instruments not designated as hedging arrangements are also included. Financial expenses comprise interest, losses on and impairment of securities, payables and transactions denominated in foreign currencies, amortization of financial liabilities, including finance lease commitments, and surcharges under the Danish tax prepayment scheme, etc. Negative changes in the fair value of derivative financial instruments not designated as hedging arrangements are also included. Tax on result for the year Nilfisk A/S is jointly taxed with the administration company Nilfisk Holding A/S and Danish subsidiaries. The current Danish income tax is allocated among the jointly taxed companies proportionately to their taxable income. Companies who is utilizing the tax loss in other companies is paying a joint tax refund to the administration company equal to the tax value of the utilized tax loss. Further companies, whose tax loss is utilized by other companies, are receiving joint tax refund from the administration company equal to the tax value of the utilized tax loss (full allocation). The jointly taxed companies are part of the on the account tax agreement. Tax expense for the year, consisting of the year’s current tax, change in deferred tax, movements resulting from a change of the corporate tax rate and changes in provision for uncertain tax positions, is recognized in the income statement, except to the extent that it relates to items recognized in equity. Current tax payable and receivable are recognized in the balance sheet as tax estimated on taxable income for the year, adjusted for tax on taxable income for previous years and for prepaid taxes. Balance Sheet Goodwill Goodwill is amortized over the expected economic lifetime being 3-10 years. Where the carrying amount exceeds the recoverable amount it is written down to the recoverable amount. Goodwill acquired is measured at cost less accumulated amortization. Other intangible assets Intangible assets are measured at cost less accumulated amortization and impairment losses. Amortization is provided on a straight-line basis over the expected useful lives of the assets. Other intangible assets are written down to the lower of recoverable amount and carrying amount. Amortization and impairment are recognized in the income statement as cost of sales, sales and distribution costs and administrative costs. Intangible assets are amortized on a straight-line basis over the expected useful life which is: Development projects completed 3-8 years Software 3-8 years Other intangible assets 3-15 years Development projects that are clearly defined and identifiable, where there is evidence of the technical utilization degree, sufficient resources and a potential future market or development opportunities in the Nilfisk Group, and where Nilfisk A/S intends to produce, market or use the project, are recognized as intangible assets if it is probable that costs incurred will be covered by future earnings. The cost of such development projects includes direct salaries, materials, and other direct costs attributable to the development projects. Amortization and write-down of such capitalized development projects start from the date of completion and are included in research and development costs. Other development costs are recognized in the income statement as incurred. Projects are assessed on an ongoing basis, taking into account development progress, expected approvals and commercial utilization. Property, plant and equipment Land and buildings, plant and machinery, tools and equipment, and other property, plant and equipment, are measured at cost less accumulated depreciation and impairment losses. The costs comprise the purchase price and any costs directly attributable to the acquisition until the asset is ready for use. The costs of self-constructed assets comprise costs of materials, components, subcontractors and wages. The costs are supplemented by the present value of estimated liabilities related to dismantling and removing the asset and restoring the site on which the asset was utilized. Subsequent costs, e.g. relating to replacement of parts of an item of property, plant and equipment, are recognized in the carrying amount of the asset if it is likely that the costs will result in future economic benefits for the Nilfisk Group. The carrying amount of the replaced parts is derecognized in the balance sheet and recognized in the income statement. All other costs relating to ordinary repair and maintenance are recognized in the income statement as incurred. If individual parts of an item of property, plant and equipment have different useful lives, they are depreciated separately. Property, plant and equipment are depreciated on a straight-line basis over the expected useful life which is: Buildings 3-10 years Plant and machinery 3-8 years Tools and equipment 3-10 years The basis of depreciation is calculated according to the residual value less impairment losses. The residual value is determined at the acquisition date and reviewed annually. If the residual value exceeds the carrying amount, depreciation is discontinued. When changing the depreciation period or the residual value, the effect on depreciation is recognized prospectively as a change in accounting estimates. Property, plant and equipment under construction and prepayments are measured at cost. When ready for use, the asset is transferred to the relevant category and depreciated. Leases Leases are recognized as right-of-use assets with the corresponding liability at the time the asset is available for use by the company. Lease liabilities are comprised of expected fixed payments throughout the expected lease period (including options to extend the lease when exercise is reasonably certain), and less any lease incentives. The lease payments are discounted using the contract’s internal discount rate or the company’s incremental borrowing rate. The costs of right-of-use assets is comprised of the calculated lease liabilities, payments made prior to entering the lease, initial direct costs, and expected restoration costs. Right-of-use assets and lease liabilities are re-measured when a factual or contractual change is executed or if a significant event or change affects the expected use of the assets. The impact is discounted to a present value basis. Right-of-use assets are measured at cost, less accumulated depreciation and impairment losses. When changing the value of right-of-use assets through remeasurement or when changing the depreciation period, the effect on the depreciation is recognized prospectively as a change in accounting estimates. Right-of-use assets are depreciated on a straight-line basis of the expected length of the contract or the expected useful lives of the assets, whichever is the shorter. Lease costs for low value assets and short-term leases are included as operational costs throughout the period based on a straight-line basis. Leased buildings 3-10 years Other leases 3-6 years Investments in subsidiaries and associated companies Investments in subsidiaries and associated companies are measured at cost. If there is indication of impairment, impairment testing is carried out. Where the carrying amount exceeds the recoverable amount it is written down to the recoverable amount. If the indication of impairment no longer exists or has decreased, the recoverable amounts is estimated to determine how much of the impaired amount should be reversed. An associated company is an entity in which Nilfisk A/S has significant influence, but not control, which in general will be when holding 20% to 50% of the voting rights. Inventories Inventories are measured at cost in accordance with the FIFO method. If the net realizable value is lower than cost, inventories are written down to this lower value. Raw materials, consumables and goods for resale are measured at cost, comprising purchase price plus delivery costs. Finished goods and work in progress are measured at cost, which includes costs of raw materials, consumables, direct wages/salaries and production overheads. Production overheads include indirect materials and wages/salaries, as well as maintenance and depreciation of production machinery, buildings and equipment, along with costs for production administration and management. The net realizable value of inventories is calculated as the sales amount less costs of completion and costs incurred in effecting the sale, and is determined taking into account marketability, obsolescence and development in expected sales price. Inventory write-downs are carried out if net realizable value is lower than costs, e.g. in case of obsolescence. Receivables Receivables are measured at amortized cost, usually equaling nominal value less write-downs for bad and doubtful debts, except for derivative financial instruments which are measured at fair value. Prepayments Prepaid expenses are measured at cost. Provisions Provisions are recognized when, as a result of events arising before or at the balance sheet date, Nilfisk A/S has a legal or a constructive obligation, and it is likely that there may be an outflow of resources embodying economic benefits to settle the obligation. The amount recognized as a provision is the Executive Management Board’s best estimate of the amount required to settle the obligation. When measuring provisions, the costs required to settle the obligation are discounted if this significantly affects the measurement of the liability. A pre-tax discount rate is applied that reflects the current market interest rate and the specific risks relating to the obligation. Changes in present values during the year are recognized under financial expenses. Warranty commitments are recognized in step with sale of goods and services based on the level of warranty expenses incurred in previous years and current level of sales. Provisions for acquisition-related earnouts are recognized based on the Executive Management Board’s best estimate of future revenue and profit in the acquired businesses. Provisions for restoring rented facilities when vacant are measured at the present value of the expected clearance and closure obligation at the balance sheet date. The provision is based on existing encumbrances and estimated costs discounted to present value. Specific risks considered to attach to the obligation are included in the estimated costs. A discount rate is applied, which reflects the current market interest rate. The obligations are included as they occur and continuously adjusted to reflect changed requirements and price levels, etc. The present value of the costs is included in the costs of the relevant tangible assets and depreciated accordingly. The increase in the present value over time is recognized in the income statement under financial expenses. Deferred tax Deferred tax is measured according to the balance sheet liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. Deferred tax is, however, not recognized in respect of temporary differences on initial recognition of goodwill and other items, apart from business combinations, where temporary differences have arisen at the time of acquisition without affecting the result for the year or the taxable income. In cases where the computation of the tax base may be made according to different tax rules, deferred tax is measured on the basis of management’s intended use of the asset and settlement of the liability, respectively. Deferred tax assets, including the tax base of tax losses allowed for carry-forward, are recognized under Other non-current assets at their expected utilization value, either as set-off against tax on future income, or as a set- off against deferred tax liabilities in the same legal tax entity and jurisdiction. Deferred tax assets and tax liabilities are offset if the company has a legal right to offset current tax assets and tax liabilities and intends to settle current tax assets and tax liabilities on a net basis or to realize the assets and settle the liabilities simultaneously. Trade payable and other liabilities Liabilities are measured at amortized cost, except for derivative financial instruments which are measured at fair value. Deferred income is measured at cost. Payables to credit institutions and other payables Payables to credit institutions, etc. are recognized at the amount of proceeds received at the date of borrowing, net of transaction costs paid. In subsequent periods the financial liabilities are measured at amortized cost using ‘the effective interest method’, the difference between the proceeds and the nominal value therefore being recognized in the income statement under financial expenses over the term of the loan. Financial risks and instruments Derivative financial instruments Derivative financial instruments are recognized from the trade date and measured in the balance sheet at fair value. Positive and negative fair values of derivative financial instruments are included in other receivables and payables, respectively, and set-off of positive and negative values is affected only when Nilfisk A/S has the right and the intention to settle several financial instruments net. Fair values of derivative financial instruments are computed on the basis of current market data and generally accepted valuation methods. Other derivative financial instruments Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognized under financial items as they arise. Cash flow hedges Changes in the effective portion of the fair value of derivative financial instruments designated and qualifying as hedges of future payment flows are recognized in a separate hedging reserve under equity until the cash flows hedged influence the income statement. Gains or losses relating to such hedging transactions are then recognized in the same item as the hedged item. If the hedging instrument no longer meets the criteria for hedge accounting, the hedging relationship is discontinued prospectively. The cumulative change in value recognized in equity is transferred to the Income statement when the hedged cash flows influence the income statement. If the hedged cash flows are no longer expected to be realized, the cumulative change in value is immediately transferred to the income statement. The portion of the value adjustment of a derivative financial instrument not included in a hedging relationship is presented under financial items. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2025-01-01 2025-12-31 2024-01-01 2024-12-31 2026-04-30 Reporting class C, large enterprise 2026-04-30 62572213 Nilfisk A/S Marmorvej 8 2100 København Ø Opinion Basis for Opinion 2026-04-30 mne50739 33963556 Deloitte Statsautoriseret Revisionspartnerselskab Weidekampsgade 6 2300 København S