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As one of the leading manufacturers, wehave delivered a significant part of towers for offshore windturbines to the European and US markets.Both onshore and offshore wind are expected to grow signi-ficantly in the coming years. This is driven by the politicalrecognition that energy resilience has become a strategicasset and an integral part of energy security and defensepolicy, and that renewable energy offers a quick and veryprice competitive solution in securing energy resilience.This year, we delivered the first components for the TetraSub floating foundation prototype, with the finalcomponents planned to be delivered early 2027. The firstcomponents were transported to Hvide Sande Port inDenmark in the beginning of June 2026 and attracted greatmedia attention. The on-time delivery by Welcon Group is agreat testament to the unique skills and teamwork of ouremployees.There is a tremendous potential globally for offshore wind indeep waters based on floating solutions. Welcon Group isideally positioned in terms of know-how, technology, andmanufacturing capabilities to capitalize on the emergingmarket for offshore floating wind.WE HAVE THE WILL, THE SKILLS, AND THE OPPORTUNITIESWe are a strong, experienced, and innovative player in therenewable energy industry.On a continuous basis, we expand and develop our state-of-the-art factory to meet market demands for even larger windturbines. Through application of robotic technologies and a skilled workforce with strong competencies, we achieve a market-leading position.Our business strategy is to grow with the market and ourcustomers’ needs.CLIMATE AWARENESSIn a time where the consequences of climate change arebecoming increasingly evident, companies worldwide mustrecognize the important role they play in mitigating itsimpact. From heat waves and rising waters to rainstormsand forest fires, the profound effects of climate changenecessitate urgent action. Welcon Group can impact climateawareness and accepts the responsibility for making this animperative for sustainable success.The renewable energy transition must happen now. Ourmission is to supply products needed for this transition tosave our planet.The world needs green solutionsnow to address the challenges withclimate changes and dependency on fossil fuelsNEARLY60 YEARSof experience in steelconstructionDKK 1.5 BILLIONannual turnover 2025/26Capacity +1,600number of sections per year848workforceend of period (headcount) DKK 1.7 BILLIONtotal balance sheetDKK 12MILLIONinvestmentsDKK 673 MILLIONtotal equity38.5%solvency ratioOPERATIONAL EXCELLENCEDevelopment in activities and financesRECORD-BREAKING OUTPUT AND REVENUEThis year, we achieved record-breaking output and revenue,demonstrating the strength of our expanded capacity andadvanced production capabilities.CONTINUOUS IMPROVEMENTWhile our activities this year generated a strong profit, wecontinue to maintain a high focus on continuous improve-ment, optimizing processes, implementing new technologieslike AI, enhancing efficiency, and driving quality to ensurewe remain a strong trustworthy partner in a rapidly growingwind market.MACROECONOMIC IMPACTThe development in the year has been characterized by anupward trending global inflation and interest rates, causedby geopolitical tensions. This impacted not only ourbusiness but the entire industry negatively and while we dosee improvement signs the profitability in the Europeanwind sector remains under considerable pressure.Welcon Group continues to hold a historically high orderbook with an outlook until 2030.FINANCIAL REVIEWThe group's income statement for the year ended 31 May2026 shows a revenue of DKK 1.5 billion, an EBITDA ofDKK 257 million and a profit of DKK 125 million. Thebalance sheet at 31 May 2026 shows an equity of DKK 673million.The revenue for the year is in line with expectations, and theEBITDA is above expectations. The result reflects continuedefficient manufacturing and strong operational perfor-mance. The EBITDA and profit for the year are consideredsatisfactory.EXPECTED DEVELOPMENT OF THE COMPANY, INCLUDING SPECIFIC PREREQUISITES AND UNCERTAINTIESBased on confirmed orders and a close to fully bookedproduction capacity, the management expects the financialstatements for 2026/27 to show a revenue at the level ofDKK 1.6 billion and EBITDA at the level of DKK 200-210million.THE YEAR AT A GLANCE2025/26 has been a well-executed year. We appreciate thededication from all our employees in a year in which wewere able to continue the growth of our business.I would like to take this opportunity to thank all businesspartners for their good cooperation in the past year.Jens Risvig PedersenCEOFINANCIAL HIGHLIGHTS AT WELCON GROUP A/SSeen over a 4-year period, the development of the group may be described by means of the followingfinancial highlights.Group2025/26 2024/25 2023/24 2022/23TDKK TDKK TDKK TDKKKey figuresProfit/lossRevenue 1,459,205 1,447,671 1,259,195 993,954Gross profit 699,863 701,237 618,065 410,567Profit before amortisation/depreciation and impairment losses256,848 246,109 125,123 68,700Operating profit 185,242 174,766 71,941 48,399Net financials (30,135) (39,601) (29,119) 9,644Profit/loss for the year 125,092 111,017 35,830 47,037Balance sheetBalance sheet total 1,748,860 2,280,275 2,195,316 1,680,834Investment in property, plant and equipment (11,809) (35,240) (476,103) (503,595)Equity 673,047 547,955 436,938 401,108Financial ratiosReturn on assets 9.4% 8.1% 3.8% 3.8%Solvency ratio 38.5% 24.0% 19.9% 23.9%Return on equity 20.5% 22.5% 8.6% 12.6%For definitions of financial ratios, see the summary of significant accounting policies.MDKKREVENUE 2,0001,448 1,459 1,5001,259 994 1,000 500 02022/23 2023/24 2024/25 2025/26MDKKGross profit 800701 700 618 600411 400 200 02022/23 2023/24 2024/25 2025/26MDKKBalance sheet total 2,5002,195 2,280 2,0001,749 1,681 1,500 1,000 500 02022/23 2023/24 2024/25 2025/26STATE OF THE ART MANUFACTURING FACILITIEWelcon Group operates one of the industry´s largest andmost advanced manufacturing facilities with 125,000 m²under roof and 180,000 m² of storage capacity. Thisextensive production footprint enables Welcon Group tomanufacture the largest offshore wind turbine towerscurrently on the market and provides the scale andflexibility required for the next generation of even largertowers. The facility comprises dedicated plate preparationand welding shops, an advanced finishing line, extensivetreatment capabilities, three assembly buildings, andsubstantial storage and logistics areas. Advanced roboticwelding and surface treatment systems, combined with alean production setup and optimized workflows, supporthigh-volume production, high quality and efficientexecution.During the year, Welcon Group continued to increaseproduction efficiency and make full use of its installedcapacity and advanced technology. This supported record-high output and revenue and reinforced Welcon Group’sposition as a leading supplier to the wind industry. WelconGroup’s scale, technical capabilities and efficient productionplatform provide a strong competitive foundation forsustainable growth.OUR VALUES ARE OUR FOUNDATION FOR CREATING A SUSTAINABLE BUSINESS MODELDeliver as agreed on time. That is what we do.We take time to understand the scope of agiven project, define our offer, and deliverexactly that at the right time.We always look ahead and explore newground because new and better solutionsnever appear out of nothing. Knowledge is,and always has been, the key.While the world is talking, wondering, andpondering, we use our experience and know-ledge to create new opportunities and busi-ness.Collaboration works when we understandeach other and share knowledge, data, andprogress in a way that is easy to understand.So that is what we aim to be – accessible.INNOVATIVE TECHNOLOGIESOur technologically advanced facility is widely recognized. Automation, safety, quality, and efficiency are deeply rooted in everything we do.To manufacture the best products in the business,the starting point must be perfect. We cut, bevel,and quality check all steel plates.Our very modern and large facility enables in-houseplate preparation of all steel plates.01. PLATE PREPARATIONPerfect perception and ultimate protection areessential when you manufacture quality construc-tions able to withstand the forces of nature and thetest of time.Our surface treatment facility does exactly that –on a very large scale.04. SURFACE TREATMENTTry to roll a small sheet of metal into a perfectcircle. It is not that easy to get it just right. Now,imagine rolling a massive sheet of steel into a per-fect circle of up to ten meters in diameter, wheremillimeter precision is essential. Quite a task, right?We do this every day and can roll steel plates with athickness of up to 160 millimeters.02. PLATE ROLLINGEvery product is different from the others in oneway or another.Regardless of specific use and assembly needs, ourskilled and experienced engineers and assemblyteams get the job done – in close collaborationwith our customers. Everybody has special needs –we have special skills.05. ASSEMBLYWe manufacture very large and heavy products,and we have the equipment to handle it.Every new and shiny tower or floating foundationleaving our factory is venturing on a special voyageto be part of a cleaner and even better future. It ismagical.06. LOADING & TRANSPORTThe art of welding is the craft and science of deepunderstanding of the material, precision, and inno-vation.We have developed and optimized this craft overmore than half a century, and our processes,efficiency, and quality are renowned throughout theindustry.03. WELDINGWORLD LEADER IN OFFSHORE TOWERSWelcon Group is the world leader in offshore towers. Since2012, Welcon Group has supplied 2,310 offshore towers, todayproducing more than 100,000 GWh annually*. This equals theelectricity consumption of 26 million private households.*Calculation based on actual invoicing and designspecificationsREDEFINING STANDARDSAt Welcon Group, we deliver world-class products andservices that create value for our customers whilecontributing to a more sustainable future.Our certified Integrated Management System forms thefoundation of how we operate. Through continuousimprovement, innovation, and employee involvement acrossthe entire value chain, we strengthen our competitivenessand maintain the trust of our customers, employees,business partners, and other stakeholders.We are committed to conducting our business responsiblyby delivering high-quality products, protecting theenvironment, preventing work-related injuries and illhealth, and ensuring safe and healthy working conditionsfor everyone working on our behalf.We promote a culture built on openness, accountability,communication, and continuous learning, where everyemployee has the authority and responsibility to contributeto quality, environmental performance, and occupationalhealth and safety.AT WELCON GROUP, DOING GOOD BUSINESS MEANS:▪ We deliver quality products that meet customer, statutory, and regulatory requirements.▪ We strive to exceed our customers' expectations through reliable performance and continuous improvement.▪ We do the job right the first time – every time.▪ We never knowingly pass defects to the next step in the value chain.▪ We prevent pollution, reduce environmental impacts, and promote the efficient use of energy and natural resources.▪ We identify and reduce risks while creating opportunities for continual improvement.▪ We provide safe and healthy working conditions and work proactively to eliminate hazards and reduce occupational health and safety risks.▪ We encourage consultation and active participation of our employees in improving quality, environmental performance, and workplace safety.▪ We do not compromise on quality, environmental responsibility, or health and safety.We ensure that our employees are qualified, competent,and provided with the necessary training, resources, andsupport to perform their work safely, responsibly, and to ahigh professional standard.At Welcon Group, quality, environmental responsibilityand occupational health and safety are fundamental values.Delivery deadlines or commercial considerations mustnever take priority over product quality, environmentaprotection, or the safety and well-being of our employees.WE SUPPORT OUR INTEGRATED MANAGEMENTPOLICY BY FOCUSING ON:▪ Continual improvement of our IntegratedManagement System.▪ Compliance with applicable legal, regulatory, customer, and other relevant requirements.▪ Development of employee competence, awareness, and engagement.▪ Systematic identification and management of risks and opportunities.▪ Effective project planning and operational excellence.▪ Continuous improvement of processes, products, and services.▪ Efficient use of internal and external resources.▪ Prevention of defects, incidents, injuries, and environmental impacts.▪ Promoting a culture where reporting deviations, near misses, improvement opportunities, and lessons learned is expected and encouraged.▪ Setting measurable objectives and regularly evaluatingour performance to drive continual improvement.Welcon Group maintains a certified Integrated Management System in accordance with ISO 9001, ISO 14001, and ISO 45001.SPECIAL RISKS, INCLUDING BUSINESS AND FINANCIAL RISKSSUSTAINABILITY AND ESG RISKSWelcon Group integrates sustainability into its overall riskmanagement. Through our bi-annual Double MaterialityAssessment (DMA), we identify and assess the environmental,social, and governance risks most material to our business andvalue chain. We also conduct risk assessments of our supply chain,including screening of key suppliers, to identify and mitigateadverse sustainability impacts. Climate-related transition risksincluding carbon taxation and regulation such as the EU's CBAMare assessed as part of our climate risk review (page 17).Welcon Group operates in an industry in which potential risks canarise concerning environmental, climate-related, social, andworkforce aspects. By continuously reviewing and enhancing ourpolicies, procedures, and training initiatives, we ensure thatactions to mitigate risks are implemented.TRADING RISKSThe company’s trading risks are related to the changes in revenueand the contribution margin of products sold. The companyhedges trading risks on an ongoing basis by focusing on thecompany’s core competencies with regards to sales, purchasing,and efficient production of high-quality products.CURRENCY RISKSThe company’s customers are invoiced in DKK or EUR. Thecompany’s primary costs are in DKK, EUR, or USD.Currency risks are low, and hedging is not necessary.CREDIT RISKSCredit risks are related to the value of the current assets andconsidered immaterial.POWERING THE GREEN TRANSITION – FROM RAW MATERIALS TO RENEWABLE ENERGYUPSTREAM DOWNSTREAMRESOURCE EXTRACTION AND PROCESSING RESOURCE EXTRACTION, E.G.:▪ Iron▪ Zinc▪ Coal▪ Copper▪ Aluminum▪ Lithium▪ Boron▪ Nickel▪ Oil▪ Chemical raw materials▪ Other minerals and raw materialsRESOURCE PROCESSING AND MANUFACTURING ▪ Various industrial manufacturers PROCUREMENT ▪ Mechanical components▪ Electrical components▪ Consumables▪ Equipment▪ Energy▪ OtherTRANSPORTATION▪ Transportation between extraction and processing/ manufacturing stages▪ Incoming transportation to Welcon GroupWELCON GROUPOWN OPERATIONSTOWERS: *▪ Plate preparation▪ Rolling ▪ Welding▪ Finish▪ Surface treatment▪ Assembly▪ Testing▪ Wash▪ Storage▪ Lifting/preparation for transportation➢ Waste, e.g., steel and wastewater➢ Internal transportation between operation steps* Similar process for other products, e.g. floating foun-dations and pressure tanksTRANSPORTATIONTransportation from Welcon Group to the installation site by land or ship – for onshore/offshore installationUSAGE▪ Installation of complete wind turbine▪ Assembled with components, e.g., foundation, blades and nacelle▪ Electricity generation▪ Maintenance of the wind turbine▪ Connection from wind turbine to gridEND OF SERVICE AND DEMOLITION▪ Wind turbine is dismantled▪ Possible restoration of the area▪ Wind turbine components are either recycled or sent to landfillCOe accounting policies2ACCOUNTING PRACTICESIn calculating COe, the emission factors provided by suppliers, utility2companies, and factors from recognized databases have been utilized,in accordance with the guidelines from the Danish Business Authorityand the GHG Protocol. The most recent publicly disclosed emissionfactors at the time of preparing the climate accounts are used. In caseswhere an emission factor is unknown at the time of the report, theprevious year's factor is used, and an adjustment to the climateaccounts is made upon the publication of the new emission factor,following the guidance outlined in the GHG Protocol.All emissions and figures are presented gross, without adjustments forCOe compensation. Some reporting points from the Voluntary2Standard Catalogue are not included in this ESG reporting due to eitherlack of relevance or lack of data. The financial year (1 June 2023 – 31May 2024) serves as base year for future reporting.Organizational BoundariesThis sustainability section is anaccount of Welcon Group A/S,central business registrationno.: 43 85 11 52Operational ControlThe organizational boundaryof this report is determinedbased on the operationalcontrol method.Scope 1-3 calculationsSCOPE 1Fueled vehicles and trucks as well as heating oil. Emission factors from DEFRA, AIB, andIEA.SCOPE 2Electricity data are based on data provided by suppliers. In line with the GHG Protocol's dualreporting requirement, market-based emission factors are obtained from El-overblik, andlocation-based emission factors are obtained from Energinet. Welcon Group transitioned togreen electricity as of 1 January 2025. As a result of this, market-based scope 2 emissions arezero in this financial year and expected to be zero in the next financial year.SCOPE 3Scope 3 emissions are calculated partly using activity data and partly using a spend-basedapproach at account level. While activity-based data provide higher accuracy when reliablesupplier-specific information is available, the spend-based method is subject to greateruncertainty. This is because spend-based calculations rely on monetary values rather thanphysical quantities and, therefore, may not fully capture differences in suppliers' carbonintensity, fluctuations in market prices, or product-specific characteristics. As a result, scope3 figures should be interpreted as best estimates based on the data available, with inherentuncertainty particularly in categories where spend-based calculations dominate.In scope 3 category 1 (Purchased goods and services), only materials that Welcon Groupowns (e.g., steel purchased by Welcon Group) are included. Materials owned by customersand only processed by Welcon Group are excluded.Certain scope 3 categories are not included even though emissions occur. This applies toemployee commuting, downstream transport, and end-of-life treatment of products, amongothers. Emission factors are from supplier-specific EPDs, DEFRA, IPCC, Exiobase,Klimakompassets Emissionsdatabase, and AIB.OUT OF SCOPE EMISSIONSIn line with the GHG Protocol, the production and use of biomass (wood pellets and woodchips) is considered biogenic emissions and are to be reported separately from WelconGroup's scope 1-3.The same principle goes for negative emissions stemming from recycling of waste categories,such as scrap steel, which are also reported separately from Welcon Group's scope 1-3.ESG key figures calculationsCALCULATION DATA FOR ESG KEY FIGURES IN ACCORDANCE WITH THEVOLUNTARY STANDARD AND GHG PROTOCOLtCO2e per MDKK revenue = Gender diversity at management leveltotal emissions / MDKK revenue(% women) = female managers / total managers * 100 tCO2e per MDKK revenue scope 1 + 2 = total emissions scope 1 + 2 / MDKK revenueInternal whistleblowing system (Yes/No) = internal whistleblower system has been establishedFull-time employees = total ATP contribution/ contribution rate for a full-time employeeMinimum wage compliance (Yes/No) = all wages are at or above the applicable minimum Full-time workforce = FTEs + temporary laborwageWorkforce = number of employees and Incidents related to child labor, forced temporary workers (head count, end of period)work, human trafficking, or discrimination= number of confirmed incidentsMen = number of men in workforceAnnual training hours per employee = Women = number of women in workforcetotal number of training hours in the year / total number of employeesAbsence ratio related to work accidents = total sick leave hours / total available work Gender diversity on the board (% women) =hours * 100female board members / all board members * 100Employee turnover = number of voluntary External whistleblowing system (Yes/No) = and involuntary departures / average number external whistleblower system has been establishedof employees * 100Collective agreements, share of employees Permanent contract = number of employees = number of employees covered by collective on permanent contracts (end of period)agreements / total number of employees * 100Temporary contract = number of employees on temporary contracts (end of period)Temporary workers = number of temporary workers (end of period)GROUP STRUCTURE AT WELCON GROUPOverview of material sites WELCON GROUP a/sTYPE OF LOCATIONADDRESSPOSTAL CODECITYGEO TAG55.904138Administration 26125856,100%Welcon A/SVejlevej2707323GiveandProduction9.19941434029777555.897259Brande Investerings- og 21279777,100%AdministrationVejlevej2547323GiveFinansieringsselskab A/S9.20949825564128255.897629242321216,100%Conwel A/SAdministrationVejlevej2637323Give9.203550113313094Table: Overview of material sites that Welcon Group owns or controls. All of the49%Welpaint A/Slocations are situated in Denmark. Administration covers various purposes that arenot production.WELCON A/S COE2The following pages demonstrate the ESG metrics of Welcon A/S, which accounts for the largest share of activity in Welcon Group.2025/26 2024/25 2023/24CategorytCO2e tCO2e tCO2eStationary combustion 37 44 65 Mobile combustion 1,155 1,187 1,294 Scope 1 1,192 1,231 1,359 Electricity (market-based) - 4,148 7,272 Electricity (location-based) 1,472 1,092 1,407 Scope 2 - 4,148 7,272 Cat. 1 Purchased goods and services 137,009 113,468 105,642 Cat. 2 Capital goods - - - Cat. 3 Fuel and energy related activities 290 701 970 Cat. 4 Upstream transportation 12,124 9,455 7,872 Cat. 5 Waste 74 128 148 Cat. 6 Business Travel 4 6 4 Scope 3 (selected categories) 149,500 123,759 114,635 Total 150,692 129,137 123,266 Biogenic CO2 emissions 923 1,154 2,084 Avoided emissions from recycling 38,420 41,478 38,998 ACCOUNTING PRACTICESThe scope 3 inventory includes categories 1, 3The greenhouse gas emissions inventory for4, 5, and 6. Capital goods, category 2, were2025/26 covers Welcon A/S only.assessed at zero emissions for the reportingyear. Other scope 3 categories are not includedWelcon A/S’ total greenhouse gas emissionsin the reported inventory and are therefore notamounted to 150,692 tCOe in 2025/26,reflected in the total emissions figure.2calculated using the market-based approach forscope 2 emissions. Scope 1 emissionsamounted to 1,192 tCOe and primarily aroseOrganizational boundaries and 2from fuel consumption in company vehicles,operational controlinternal transport equipment, and stationaryThe greenhouse gas emissions presented oncombustion sources.this page relate solely to Welcon A/S, centralbusiness registration no. 31 49 14 01. TheScope 2 emissions from purchased electricityinventory excludes emissions from Conwelamounted to zero tCO2e under the market-A/S, Brande Investerings- og Finansierings-based approach. Using the location-basedselskab A/S, Welcon Group A/S, Welpaint A/Sapproach, emissions from purchased electricityand other group entities.amounted to 1,472 tCOe. The location-based2scope 2 figure is disclosed separately and is notThe reporting boundary is determined usingincluded in the reported total emissions figure.the operational control approach. Accordinglythe inventory includes emissions from activitiesScope 3 emissions amounted to 149,500 tCOeand assets for which Welcon A/S has the2and cover selected value chain categories. Theauthority to introduce and implementmost significant source of emissions wasoperating policies. Emissions from entities andpurchased goods and services, including steelactivities not operated by Welcon A/S areand other materials, which accounted forexcluded, irrespective of their ownership137,009 tCOe. Other included sourcesrelationship within Welcon Group.2comprise fuel- and energy-related activities,upstream transportation and distribution,waste generated in operations, and businesstravel.WELCON A/SSocial dataUnit2025/262024/252023/24Full-time employees FTE639662773Full-time workforceFTE644690820WorkforceHeads848787909MenHeads799743860WomenHeads494449Trainees, internships, apprentices, etc.Number1355Flex workers, section 56 employees, Number1033and workers in job training programsEmployee turnover%23.028.429.8Permanent contractHeads843759862Temporary contractHeads000Temporary workersHeads52847Gender diversity at %000management levelInternal whistleblower systemYes/NoYesYesYesMinimum wage compliance Yes/NoYesYesYesAnnual training hours per employeeHours6.36.94.9Incidents related to child labor, forced work, human Number000trafficking, or discriminationACCOUNTING PRACTICESThe social and governance data presented on this page relate solely to Welcon A/S, central businessregistration no. 31 49 14 01, and exclude Conwel A/S, Brande Investerings- og FinansieringsselskabA/S, Welcon Group A/S, Welpaint A/S, and other group entities, unless otherwise stated.Data are derived from Welcon A/S’ payroll, HR, health and safety, whistleblowing, and financialreporting systems. Headcount, gender distribution, contract type, and board diversity are measured atthe end of the financial year. Full-time employees are calculated using ATP contributions, while full-time workforce includes both FTEs and temporary workers. Employee turnover is calculated as thenumber of voluntary and involuntary departures divided by the average number of permanentemployees during the year.Annual training hours are calculated as total registered training hours divided by the average numberof employees. The share of employees covered by collective agreements is calculated as employeescovered by collective agreements divided by the total number of employees. The balance sheet total isbased on the statutory financial statements of Welcon A/S at 31 May 2026. Comparative figures areprepared using the same principles.As Welcon A/S represents substantially all of Welcon Group's employees and production, the figuresare materially identical to the Group-level figures reported on page 23.GovernanceUnit2025/262024/252023/24Gender diversity on the board %000(% women)Collective agreements, share %828487of employeesSize of balance sheet TDKK785,3961,041,218979,866External whistleblower systemYes/NoYesYesYes IMPLEMENTATION OF THE Voluntary STANDARDBusiness modelWe produce towers and floating foundations for wind turbines and hydrogenpressure vessels for the renewable energy industry. As one of the leadingmanufacturers, we have delivered a significant part of towers for offshorewind turbines to the European and US markets.ESG reporting 2025/26At Welcon Group, sustainability is a central part of our business strategy anddecision-making basis. In order to create transparency and structure in ourwork with environmental, social, and governance issues, we present in thissustainability section our ESG efforts from the financial year 2025/26.Following the EU’s Omnibus package, neither Welcon Group nor our parentcompany, CJ Holding ApS, is obliged to report under the CSRD directive.However, we have chosen to be inspired by selected elements from both theBasic and Comprehensive Modules of the EU’s Voluntary Standard.Reporting in this way also constitutes and meets relevant requirements forCSR reporting in accordance with the Danish Financial Statements Act.This approach ensures that our reporting aligns with the EU recommenda-tions for transparency and reflects our focus areas within sustainability.The reporting is made on a consolidated basis and includes relevant datafrom our subsidiaries.This table provides an overview of the voluntary standard data pointscovered in this report and the page numbers where each disclosure can befound. It spans environmental, social, and governance topics – from basisfor preparation and environmental impacts to workforce characteristics –to help readers navigate directly to the relevant sections.VS data pointsTitlePage number B1Basis for preparation1, 14, 23, 29, 34, 38-42Practices, policies, and future initiatives for B217, 20, 21, 22, 29, 30transitioning towards a more sustainable economyB3Energy and greenhouse gas emissions18, 19B4Pollution of air, water, and soil20B6Water18B7Resource use, circular economy, and waste management21B8Workforce – General characteristics23Workforce – Remuneration, collective B1023, 29bargaining, and trainingStrategy: Business model and sustainability C13, 27–Related InitiativesDescription of practices, policies, and future initiatives C217, 18, 20, 21, 22, 26, 29, 30for transitioning towards a more sustainable economyC3 GHG reduction targets and climate transition15, 17 C4 Climate risks17 C5Additional (general) workforce characteristics23Additional own workforce information – Human rights C630policies and processesC7Human rights incidents23 C9Gender diversity ratio in the governance body29WORKING FOR A BETTER TOMORROWAt Welcon Group, sustainability is more than a regulatoryrequirement. For us, it is a competitive advantage, a stra-tegic priority, and a deeply held commitment to futuregenerations. As one of the leading manufacturers of windturbine towers and floating foundations for the renewableenergy sector, Welcon Group plays a central role in enablingthe global energy transition. But to truly live up to ourambition of becoming the world’s most sustainable manu-facturer in our field, we must look inward as much as welook ahead.Undertaking sustainability reporting aligns closely withWelcon Group’s overarching sustainability objective: tosupply products for the green transition to save our planet.Submitting to and having our carbon reduction goalsapproved by Science Based Targets initiative (SBTi) withinFY 2027/28 ensures that our ambition is matched by action.Sustainability and circularity are integrated into our annualmanagement reviews under ISO certifications and areregular agenda items at board level.READING GUIDEThe next sections are divided into topics from the VoluntaryStandard, where relevant initiatives are described beneatheach topic. As we in Welcon Group have conducted a DoubleMateriality Assessment (DMA) for the second time in 2026,we will only be reporting on material topics. For acomprehensive overview of policies, sustainability strategy,and certificates, please refer to page 30.EnvironmentalSocialGovernance BUILDING A LOW-CARBON AND RESILIENT FUTUREThis overview outlines our current actions, future targets, and the climate-related risks we face. It shows how we work to reduce emissions, set ambitious goals for renewable energy and efficiency, and address both challenges and opportunities in the green transition.Existing practices/policies/actions Future initiatives/targets Climate-related risks/ transition risksSustainability strategy and environmental policy • Our primary focus is aimed towards climate data reporting, our value chain, • Introducing product-specific carbon footprints • Policy-related risk that increase demand and introducing sustainable initiatives on-site to reduce carbon emissions.in 2027.for reporting and compliance will strain • Biofuel facility utilizes wooden waste from our sister company Superwood• Submitting carbon intensity targets to SBTi our resources from action to reporting.as energy.by 2027/28. • Policy-related risk that carbon taxation will • Hybrid and electric vehicle fleet on-site if possible (current lifting capacity on • Target: Reduce carbon footprint of diesel result in financial implications, as we work electrical trucks limits possibilities, as we often lift towers that are too heavy).consumption by 10% in financial year (FY) 2026/27, in an industry with high emissions.• Solar power cells on rooftops corresponding to 1 MWh.compared with our baseline FY 2023/24 for ESG-• Reputational risk of being transparent about • Energy optimization measures in our production processes to reduce the related activities.high emissions, both on-site and in our value energy consumption and material use per tower.• Initiative: Investigating whether Welcon Groupchain.• 5% reduction in diesel consumption in FY 2025/26, if not achieved then could be self-sufficient with carbon, and capture • National risk in energy supply related to covered by purchase of HVO corresponding to the carbon footprint of 5% carbon on-site using carbon capture technology.geopolitical unrest and potential attacks reduction in diesel. • Initiative: Integrating carbon considerations on the power grid.• Joining the Science Based Targets initiative (SBTi) in 2025/26, aligning as a systematic part of our purchasing process, our emission reduction targets with the Paris Agreement.where possible.• 100% renewable electricity target met in FY 2025/26.Exposure and vulnerability in relation to the listed risksAssets Activities Value chainProducing large steel structures has a noticeable environmental impact, primarily The wind industry carries a heavy carbon footprint, Welcon Group is uniquely positioned to turn thesethrough the carbon emissions associated with steel processing and energy and much of it comes from the fact that a large part challenges into an advantage. As demand for low-consumption. Reducing our carbon footprint comes with a price, e.g., with the of the structure consists of steel – one of the most carbon infrastructure increases, our ability to introduction of more sustainable materials such as HVO diesel or materials with carbon-intensive materials. Yet, the structures we build demonstrate credible climate action enhances a lower carbon footprint, investments in solar power cells, or cleaner technology are essential to the global energy transition from fossil our competitiveness. In a future where carbon-on-site.fuels to renewable energy.conscious manufacturing will define market leadership, our sustainability performance However, investment in, for example, solar power increases resilience towards becomes a strategic asset.energy supply.OUR CARBON FOOTPRINTBy expanding our data coverage and refining our calculations, we aim to build a clearer picture of ouremissions across the value chain and identify new opportunities to reduce our impact. Additionalcategories will be included in the coming years as we continue to strengthen our reporting andknowledge base.Compared with our baseline year, we are slowly transitioning from more spend-based input tovolume-based input, reflecting our commitment to gaining a deeper and more accurate understandingof our total climate footprint. At the end of the reporting period, 89% of our data points were volume-based, compared to 53% in FY 2023/24.2025/26 2024/25 2023/24 2025/26CategorytCO2e tCO2e tCO2eDistributionStationary combustion 37 44 65 0%Mobile combustion 1,155 1,187 1,294 1%Scope 1 1,192 1,231 1,359 1%Electricity (market-based) - 4,148 7,272 0%Electricity (location-based) 1,472 1,092 1,407 Scope 2 - 4,148 7,272 0%Cat. 1 Purchased goods and services 137,013 113,475 105,648 91%Cat. 2 Capital goods 331 1,392 7,394 0%Cat. 3 Fuel and energy related activities 290 701 970 0%Cat. 4 Upstream transportation 12,124 9,455 7,872 8%Cat. 5 Waste 74 128 148 0%Cat. 6 Business Travel 4 6 4 0%Scope 3 (selected categories) 149,835 125,158 122,036 99%Total 151,027 130,536 130,667 100%Biogenic CO2 emissions, scope 1923 1,154 2,084 Avoided emissions from recycling, scope 3 38,420 41,478 38,999 99% of our carbon footprint comes from our value chain (scope 3).More than 76% of our emissions are from steel purchases (part of scope 3, category 1).Our solar panels produced 1,096 MWh in 2025/26.During 2025/26, our total water withdrawal was 12,445 m³Data point B3UnitRenewableNon-renewableTotalElectricityMWh18,017 0 18,017FuelsMWh6,159 4,593 10,752 In scope 3 category 1 (Purchased goods and services), only materials thatWelcon Group owns (e.g., steel purchased by Welcon Group) areincluded. Materials owned by customers and only processed by WelconGroup are excluded. This follows the recommendations in the GHGProtocol. Please read our COe accounting policies on page 32.2symbol, logo, Font/skrifttyAI-genereret indhold kan vukorrekt.MANAGEMENT’S REVIEW | E1: CLIMATE CHANGEOUR CARBON FOOTPRINTEnvironmentalCarbon intensity 2025/26 2024/25 2023/24tCO2e per MDKK revenue scope 1 & 21 4 7 tCO2e per MDKK revenue scope 1, 2 & 3104 90 104 SCOPE 1We have eliminated the last remaining heating source using heating oil, and as a resultstationary combustion has decreased. Our total diesel consumption has increased by 3%,however, taking the purchase of HVO into account, we have managed to reduce our scope 1emissions by 12% compared to FY 2023/24.SCOPE 2Our emissions from electricity have decreased to 0, in accordance with our target for FY2025/26, which was 100% renewable electricity.SCOPE 3Our scope 3 emissions have in total increased by 27,799 tons compared to our baseline year.Category 1, Purchased goods and services, is the main driver behind the increased carbonfootprint. This is a result of higher production activity and output, which also requires a largeramount of raw materials for our production. As a natural consequence thereof, Category 4,Upstream Transportation increases as well due to increased activity. We have managed todecrease the carbon emissions from category 5, Waste significantly, like Category 2, CapitalGoods. The latter is dependent on the need to expand our production capacity, which followsthe development in the industry, specifically the designs and dimensions of wind turbines.Scope 1 & 2Scope 1, 2, & 3-86%unchangedcarbon intensity vs. FY 2023/24carbon intensity vs. FY 2023/24Introduction of renewable energy and Processing heavy steel structures lower fuel consumptioncontinues to drive total emissions.19TACKLING POLLUTION AND DRIVING ENERGY TRANSITIONExisting practices/policies/actions Sustainability strategy and environmental policy • Optimize internal logistics to reduce unnecessary emissions from on-site transport.• Operate combustion practices, reducing reliance on heating oil and utilizing waste as energy. Our biofuel facility transforms waste pallets and wood pellets from Superwood, one of our sister companies, into usable energy. This not only closes a local resource loop, but also reduces our dependence on external fuel sources.• Explore alternative welding methods, carbon-efficient materials, and design strategies that reduce emissions at the source.• 100% renewable electricity target met in FY 2025/26.Future initiatives/targets• We are investigating whether it is possible to introducecarbon capture on-site, and become self-sufficient withthe carbon we use for our welding processes. Hence, we could reduce emissions on-site.139tonsCOe reduction 2in diesel consumption compared with FY 2023/24 During FY 2025/26, our diesel consumption was 496,376 liters. Compared toour baseline year, 2023/24, our consumption has increased by 3%, despiteproducing 251 more sections in the same period, corresponding to a 23%increase in activity. As we knew that production activity would increase inthe financial year 2025/26, we chose to acquire 36,981 liters of HVO toreplace some of our diesel consumption. The reduced carbon footprint of ourHVO purchase, in combination with our diesel consumption, gives us a totalreduction in scope 1 of 12%. Thereby, we have exceeded our target for 5%carbon reduction in 2025/26 compared to FY 2023/24.We will continue to map our diesel consumption as it accounts for a ratherlarge portion of our emissions on-site. Among other initiatives, we willcontinue to uphold diesel reduction ambitions as well as purchasing HVO in2026/27.RESOURCE USE AND CIRCULAR ECONOMY Existing practices/policies/actions Sustainability strategy and environmental policy • Ensure high-quality input and production to reduce waste streams.• Go the extra mile to ensure that as much as possible of our waste is recycled.• Collaborate with our largest suppliers to select packaging in cleaner fractions that we can recycle at a higher quality.Future initiatives/targets• Target to increase recycled share of waste to 98.5% in the financial year 2026/2027, compared withFY 2023/24.Our circularity effortsFor years, we have meticulously sorted and recycled as much waste fromboth production and administration as possible thoroughly by materialclasses. We always strive to keep waste at a minimum, and waste is recycledor disposed of via licensed partners. As is evident in the table to the right,96.2% of the waste we generate at Welcon Group is recycled. We have nohazardous fractions that are not recyclable. As our production has grownover the years, so have the amounts. Even though we can show impressiverecycling rates, we will continue to improve on this matter.Steel, which is the most material resource input to our production, has greatcircular potential. As steel accounts for more than 50% of our carbonfootprint, we also focus on collaborating across the value chain to reduce theamount of virgin steel introduced to wind towers and to reuse as much of thescrap steel directly in the value chain as possible. Luckily, we see examples ofthis in the industry.We hope to see more projects integrating green and/or reused steel in thefuture, as sustainability has slowly begun to become an integrated part ofpublic procurements, and carbon emissions are one of the most materialsustainability discussion topics for the wind industry.Waste category Amount ShareRecycled waste 14,670 tons 96.2 %Non-recycled586 tons 3.8 %wasteTotal waste 15,255 tons 100.0 %PEOPLE AND SOCIAL RESPONSIBILITYOur employees are at the heart of our business, and we are committed to creating a safe, inclusive, and supportiveworkplace. Through clear policies, continuous safety efforts, and initiatives to strengthen diversity, we strive toensure well-being, attract new talent, and retain a skilled workforce. The following overview highlights our currentactions, future initiatives, and key social data.Existing practices/policies/actions Future initiatives/targetsSustainability strategy, internal and external Code of Conduct• Providing assistance under section 56 for employees with chronic illness • Actively promoting Welcon Group as an attractive workplace for trainees or long-term health needs.and students with annual presentations at selected vocational education • Maintaining ISO 45001 certification and conducting regular safety inspections institutions, aiming to increase the number of trainees and internships at and monthly reporting.Welcon Group. • Investing in assistive tools, ergonomic equipment, and structured safety training • Welcon Learning Platform: The platform will enable systematic tracking offor employees.training progress, provide enhanced visibility of workforce competencies, • Offering 14-day work arrangements that allow international employees to work and support the continued development of multi-skilled employees acrossabroad without relocating their families.the organization.• Supporting flexible arrangements, such as part-time work, flextime, job trials, and individual shift preferences.• Creating a thriving environment for trainees and interns at Welcon Group, taking in new young talents every year. Introducing a mentoring program for trainees and internships, securing their well-being during their time at Welcon Group. The initiative has already taken effect, as we have seen an increase in trainees from 5 to 13 from baseline FY 2023/24 to FY 2025/26.• Welcon Academy – internal training and skills upgrade of our colleagues.SocialPEOPLE AND SOCIAL RESPONSIBILITYOUR COMMITMENTSocial dataUnit2025/262024/252023/24We ensure that all practical and effective measures are in place to protect the health, safety,and welfare of our employees, suppliers, customers, and others that may be affected by ourFull-time employees FTE639662773operations.Full-time workforceFTE644690820The overall responsibility for health and safety rests with the CEO. Furthermore, the safetyWorkforceHeads848787909organization is established according to the legal requirements in Denmark. The safetyorganization consists of representatives from management, shop floor management, andMenHeads799743860employees, including employee representatives, and covers 100% of our employees. Ourhealth and safety policy is implemented and maintained in cooperation between the safetyWomenHeads494449organization and the management of Welcon Group.Trainees, internships, apprentices, etc.Number1355Flex workers, section 56 employees WELFARE OF OUR EMPLOYEESNumber1033and workers in job training programsThe welfare of our employees is of high priority, and we strive to maintain a high safetystandard and create a comfortable and inspiring workplace.Employee turnover%23.028.429.8Permanent contractHeads8437598620.4% absence ratio related to work accidents was registered in 2025/26 compared to 0.3% in2024/25. All small accidents are reported, including accidents not leading to absence.Temporary contractHeads000Various initiatives to reduce workplace injuries are implemented on a continuous basis. Theaccidents that have happened the last year are less severe, which is evident as the absence ofTemporary workersHeads52847the individual accidents has shortened significantly. Over the last three years, resourceswithin HSE have been tripled.Gender diversity at %000management levelAt Welcon Group, we do not tolerate violence, threats, racist utterances, bullying,Internal whistleblower systemYes/NoYesYesYesharassment, or sexual harassment, neither during nor outside working hours. Theprofessional tone among colleagues must be proper and respectful. We want everyone to feelMinimum wage compliance Yes/NoYesYesYessafe when working at Welcon Group.Annual training hours per employeeHours6.36.94.9Incidents related to child labor, forced work, human Number000trafficking, or discriminationAN INCLUSIVE AND DIVERSE WORKFORCETEAMWORK AND COMMITMENTWe employ 25 different nationalities at Welcon Group. Thisdiversity provides the possibility to gain from the benefits ofhaving a multi-cultural workforce. Teamwork and partner-ship are very important to Welcon Group. We value peoplewho appreciate teamwork, are knowledgeable, and are notafraid to challenge the status quo and speak their mind.Our employees not only help us think about our future butalso support us to shape and create it. We transform ideasinto towers, floating foundations, and pressure tanksthrough an open and inclusive management style.We have a working environment in which our employeesenjoy getting new tasks and opportunities. We are creating afoundation for our employees to develop professionally andpersonally.OUR FOUNDATIONOur company is based on strong cooperation between ouremployees. We foresee and act according to our values. Weare constantly monitoring the market and make businessdecisions in accordance with our values.We want to be our current and future customers’ firstchoice. To succeed, we have set ambitious and challengingbusiness objectives. The objectives ensure the fulfilling ofour customers' needs and criteria. We continuously invest inhuman capital, ensuring that we have the knowledge andskills to exceed both our own and our customers’ expec-tations.At Welcon Group, we have a feedback culture throughoutthe entire value chain. We appreciate feedback from ouremployees, suppliers, and customers, as it helps us in ourjourney towards world-class performance.ATTRACTING NEW TALENTWe are actively strengthening our cooperation with locaeducational institutions by attending educational fairs andpresenting Welcon Group as an attractive workplace forfuture talent. As part of this effort, we have redesigned ourinternships and trainee programs to ensure that studentsgain broader and better learning experiences.Today, our interns are involved in a wide range ofprocesses, giving them valuable insight into everythingfrom maintenance and QHSE to actual production andoperations. In this way, they develop a hands-on under-standing of the entire value chain while contributing withnew knowledge and perspectives. During the last year, wehave experienced an increase in trainees, which willhopefully continue as our efforts with redesigninginternships and trainee programs continue. The latestaddition to the program is a mentoring program, where twodedicated colleagues spar, guide, and follow up on theirwell-being.We are proud to have received an award for our socialengagement for the second time in a row in 2025 from thelocal municipality, Ikast-Brande Kommune.WELCON ACADEMY, TWI (TRAINING WITHIN INDUSTRY) JOB INSTRUCTION, AND THE WELCON LEARNING PLATFORMWith the establishment of Welcon Academy, dedicated resources have been assigned to training andupskilling our employees. The primary objectives are to ensure a structured onboarding process,strengthen workforce competencies, and develop a more flexible and multi-skilled organization.Since the launch of Welcon Academy, significant progress has been made, and the program continues toevolve through ongoing improvements and new learning initiatives.To support the growing number of training activities and competency requirements across theorganization, we have taken the first steps towards developing the Welcon Learning Platform. Theplatform will enable systematic tracking of training progress, provide enhanced visibility of workforcecompetencies, and support the continued development of multi-skilled employees across the organization.KEY FIGURES▪ 200+ leaders, support functions, and TWI Job Trainers trained in TWI Job Instruction▪ 70+ TWI Job TrainersRESULTS▪ Fewer and less serious repairs▪ Reduction in number of audit findings (internal and external)▪ Improved and faster onboarding▪ Reduced time spent on peer-to-peer training“I would like to highlight our professional expertise. The factthat we are masters of our craft – rolling, welding, andhandling large steel structures – is what makes our businessunique. These are also the skills we focus on maintaining anddeveloping within the company throughout these newinitiatives. – Generally speaking, we take great pride in ourtrade, and many employees are very proud to be welders atWelcon Group and to have mastered this craft.”Marian Rasmussen, Head of HR CORPORATE GOVERNANCEWelcon Group is dedicated to upholding strong corporate governance principles. As such,management conducts an annual assessment of the group's management systems to confirmalignment with the needs of the group's stakeholders externally and internally.STRENGTHENING OUR EFFORTS WITHIN SUSTAINABILITYIn 2024, we chose to strengthen our internal resources within sustainability. We established asustainability advisory board consisting of our Deputy CEO, CFO, QHSE Manager, BusinessDevelopment Manager, Group General Counsel, Purchasing Manager, and Group Sustaina-bility Manager. All larger decisions are brought to the attention of the board of directors inboard meetings. Our Deputy CEO is ultimately responsible for the implementation ofsustainability initiatives and meeting our targets.Welcon Group uses EcoVadis as a management tool to strengthen both competitiveness andrisk management. The framework provides internationally recognized benchmarking,supports compliance with global standards, and ensures transparency across our value chain.This enhances trust with customers and partners, helps us identify risks and opportunities,and positions Welcon Group strongly in the market as we work towards becoming the world’smost sustainable manufacturer of wind turbine towers.OUR RESPONSIBILITY AS MANAGEMENTThe composition of employees at Welcon Group reflects the fact that the company workswithin a heavy industry in which more men than women are usually employed. As a result ofthis, a significant imbalance between male and female employees exists, with malesoutnumbering females by a considerable margin. However, focusing on office admin staff,Welcon Group has a more equal composition of employees.Welcon Group supports the political initiatives that encourage more young people to pursuevocational education, and specifically, that more women are motivated to build a career withinthis field.At Welcon Group, the production is represented by many different nationalities, and we wouldlike to see a higher proportion of women in our production, as we believe that a mix ofcultures, nationalities, religions, gender, etc., helps contribute to an exciting workenvironment with diverse perspectives, which in turn fosters innovation and new solutions.POLICIES, CODE OF CONDUCT, AND WHISTLEBLOWER SYSTEMOur work regarding environmental and social concernsis reflected in our overall strategy, our policies, and ourCode of Conduct. For now, we have segmented oursuppliers into two categories; A) Top 30 suppliersbased on purchasing volume, and B) Approvedsuppliers which are material to Welcon Group’sproduction.By the end of the reporting period, all these suppliershad received the Supplier Code of Conduct, and 84%have signed. We will continue to target 100% signed byend of FY 2026/27.0Whistleblower reportsOverview of the geographical placement of the top 30 suppliers,which are placed in the 7 countries marked on the map.C SIGNED BY TOP 30 SUPPLIERS: 73%New target in FY 2026/27: 100%SUPPLIER SUSTAINABILITY SURVEY COMPLETED BY Approved SuppliersCORPORATE GOVERNANCEWORKING WITH OUR SUPPLY CHAINBeing a part of the wind industry, we rely on supply of minerals thattypically derive from mining activities and processing in Asia. Themajority of our suppliers are under free issue sourcing or directedsourcing contracts by our customers, limiting our flexibility in terms ofminimizing social and environmental risks. However, our customersare some of the largest enterprises in the wind industry and carry outtheir responsibilities in the supply chain with respect. Therefore, werest assured, expecting that extensive risk assessment on social andenvironmental risks for our suppliers has already been conducted.In the coming years, we will be focusing on gathering more com-prehensive data from our suppliers, influencing internal policies andprocesses to reflect what Welcon Group considers to be sustainablebusiness conduct. For now, we have made a geographical screening onenvironmental and social risks of our top 30 tier 1 suppliers by usingthe assessment tools AMFORI and Preferred by Nature, having themsign our Code of Conduct, and reviewing CSR reporting by theindividual companies. It is our ambition to build on the assessmentover time.CORPORATE GOVERNANCEWelcon Group is committed to structuring our procurement to mitigate, to the greatest extentpossible, the environmental and social impact, focusing on the purchases most material to ourproduction. In line with quality and price, Welcon Group will include environmentalconsiderations in our procurement process to ensure that purchased products have the lowestpossible negative environmental and/or social footprint, minimize the use of non-renewableresources, and increase the proportion of renewable resources. We have incorporated socialand environmental risk assessments into our supply chain management and are reporting thedevelopment to the Sustainability Advisory Board and Executive Management on a semi-annual basis.LEGISLATIVE COMPLIANCEWelcon Group will comply with applicable legislation at all times as a minimum requirement.Additionally, we will adhere to the 10 UN principles, ILO guidelines, and the UN SDGs asguidelines for sustainable conduct. Until 2030, Welcon Group will strive to work with andcontribute to the achievement of the 17 SDGs to the extent possible. We will annually selectSDGs that align with our focus areas, establish sub-goals, assign KPIs, and thereby ensure thatwe contribute to a more sustainable society.DATA ETHICSWelcon Group handles general data in the form of customer data and employee data. Data isprocessed in accordance with GDPR regulations and our internal policies for privacy andinformation security. Given the limited processing of data, it is Welcon Group’s assessmentthat a policy on data ethics is presently unnecessary. Welcon Group will continuously evaluatewhether a policy is a requirement going forward.HUMAN RIGHTS, ANTI-CORRUPTION, AND BRIBERY POLICIESWelcon Group is committed to the fundamental principles of human rights. Discrimination,harassment, and any form of unfair treatment are strictly prohibited. We prioritize creating aninclusive and respectful environment in which every employee, partner, and stakeholder istreated equally and with the respect they deserve. Welcon Group does not tolerate any kind ofcorruption or bribery. Our business activities are conducted with the highest level of integrity,reflecting our commitment to transparent and ethical conduct.CORPORATE GOVERNANCE KEY FIGURESStrong governance practices form the foundation of our sustainability strategy. Throughclear policies, certifications, and transparent reporting, we ensure responsible businessconduct and compliance with international standards.Existing practices/policies/actions Future initiatives/targetsSustainability strategy, internal and external Code of Conduct• EcoVadis Bronze score for Welcon A/S.• Improving our EcoVadis score from bronze• Quality assurance to minimize waste and increase to silver in FY 2026/27.durability of the solutions we sell, working with and • Maintaining the ISO 9001 and ISO 14001 maintaining the ISO 9001 and ISO 14001 certificates.certificates.• Working with the sustainable development goals and • Continue to work with the sustainable sub-goals. Every year since 2021, we have chosen four development goals.goals to work on. They can be recurring if we find new relevant sub-goals or find that we have not quite succeeded yet. Specifically, we have finished working with SDG #8 and #13. • Whistleblower system.• Anti-corruption and anti-bribery training.GovernanceUnit2025/262024/252023/24Gender diversity on the board %000(% women)Collective agreements, share %828487of employeesSize of balance sheet TDKK1,748,8602,280,2752,195,316External whistleblower systemYes/NoYesYesYesB10 §42b, C3 §54 & §55, C4 §56, C5 §60, C7 Omitted reporting points §62c, C825.11 Manufacturer of metal structures and NACE sector classification codeparts of structuresUndertaking’s legal formPrivate limited liability companyEcoVadisWe have, since our first assessment in 2024, managed to increase our score from 58 to 72.72/100Read more about our The percentile indicates that our score is now higher than 84% of the companies ratedOVERALL SCOREEcoVadis medal on thewithin the EcoVadis system. Over the past year, we have been working on implementingrecognition page heresustainability initiatives into existing documentation and reporting workflows. This is anPercentileongoing process.84thGoOVERVIEW OF POLICIES, PARTNERSHIPS, AND CERTIFICATESRead more NameDescription LinkValid untilon pageAn overview of Welcon Group’s responsibilities and ambitions regarding 15, 17, 19,Sustainability strategyP005sustainability towards 2040.20, 23, 27Environmental policy A summary of our efforts to ensure protection of the environment. 17, 19 welcon.dk/about-us/environment/Health and safety policy A summary of our efforts to ensure protection of health, safety, and welfare. 22 P810How Welcon Group operates its whistleblower program and thereby avoids Whistleblower policy27 P57potential irregularities or unlawful acts/conduct from going unreported.Description of how we handle personal contact information and procedure for GDPR policyP56handling potential breaches of GDPR legislation.Policy for complying with the Danish cooperation agreements and collective Union policy and agreements (FH/CO-industri, TEKNIQ Arbejdsgiverne with Dansk Metal, 3F, I900-33structured dialogueHK, and TL), ensuring structured social dialogue and cooperation committees between management and employees. Policy for increasing the share of the under-represented gender in Policy for increasing the management, in compliance with section 99b of the Danish Financial share of the under-26 I900-30Statements Act and section 139c of the Danish Companies Act, with annual represented gender HR follow-up and reporting to the board of directors. Quality policy A summary of our quality standards and objectives. 11 P000Purchasing policy A summary of our purchasing policy. 28 P200Internal COC Covers our human rights policy internally and externally in Welcon Group 27 P200“Do Good Business”and the material topics Own Workforce and Business Conduct, and the themes child labor, forced work, human trafficking, discrimination, External COCsafety/prevention of accidents, corruption, and bribery.27 P200EcoVadis Check out our rating on the holistic sustainability rating platform EcoVadis. 29 welcon.dk/about-us/who-we-are/ 2026ISO 45001 Welcon Group is certified according to ISO 45001. 22, 23 - 2027ISO 9001 Welcon Group is certified according to ISO 9001. 11, 29 welcon.dk/about-us/quality/ 2027ISO 14001 Welcon Group is certified according to ISO 14001. 29 welcon.dk/about-us/environment/ 2027GREEN POWER GREEN POWER DENMARK is considered a major influencer on behalf of greenpowerdenmark.dkDENMARK the Danish energy sector.TEKNIQ is a trade and employers' organization representing 4,100 TEKNIQmechanical and electrical contractors in the electrical, plumbing, heating, https://www.tekniq.dk/ventilation, and metals industries. WORKING WITH THE SUSTAINABLEDEVELOPMENT GOALSOUR FOCUS ON SDGS IN 2025/26#7.2 Before 2030, the renewable energy share in the global energy mix must increase significantly.The more wind turbine towers and floating foundations Welcon Group produces, the morewind turbines are established globally, leading to the generation of more green energy.Our production of offshore towers to date has the potential to contribute 100,000 GWh of renewable energy annually.Amount of produced renewable energy on-site: 1,096 MWh – the annual electricity consumption of around 275 Danish households.Purchase of green energy certificates (GoO’s) since 1 January 2025 for all the remainder of our energy consumption.#8.5 Full employment and decent work for all, across gender, age, and disability.We aim to create an attractive workplace that welcomes everyone. We believe that safety and well-being are closely linked to delivering the quality that is synonymous with the Welcon Group brand.Proportion of the workforce in flexible jobs, section 56, part-time, senior schemes, etc.: 10Number of student assistants, interns, appren-tices, trainees, etc.: 13#12.5 Reduce the amount of waste.KPI: Increase proportion of waste recycled, incinerated, and landfilled to 98% compared to total waste in the financial year 2025/26.Result: Target not achieved, however, we have increased our recycling rate from 94% to 96%.#12.8 Promote knowledge of sustainable development. Achieving the sustainable development goals by 2030 requires collective effort. Therefore, we are committed to collaborating with educational institutions and other stake-holders. This collaboration aims not only to disseminate advancements in the wind turbine industry but also to influence and drive progress within the sector.Participation in interviews/educational tasks related to sustainability: 5Number of student assistants, interns, apprentices, trainees, etc.: 13Collaboration projects with stakeholders: 1#15.5 Limit the degradation of natural habitats and halt the loss of biodiversity.As part of a heavy industry, we have a responsibility to ensure that our local environment contributes to increased biodiversity. The local environment around the site of Welcon Group is, in fact, surroundedby more wild nature than first expected. When we compare the number of square meters of factory to number of square meters that are nature areasowned by Welcon Group and its owners, the areas are quite similar. 2Factory: 470,000 m2Nature area: 428,000 mThe nature areas are largely left to develop on their own terms. The areas include a forest, two small lakes, and some green areas. When we renovate or expand our grounds in the future, nature and biodiversity will be taken into consideration. For example, there is a wish to develop an area where an old and desiccated creek runs through. As is the case for many creeks and rivers in Denmark, it has been straightened out during the industrialization period. If Welcon Group were to develop the area, the creek would be restoredto its natural course, deepened and widened so it would not desiccate, and more nature would be left to be wild on the banks. 1459205000 1447671000 0 0 3910000 5862000 0 0 628026000 628205000 0 0 135226000 124091000 114000 89000 699863000 701237000 -114000 -89000 443015000 455128000 0 0 67696000 65481000 0 0 189152000 180628000 -114000 -89000 0 0 120476000 106893000 4542000 4131000 4542000 4131000 12235000 20645000 4678000 76000 46912000 64377000 4469000 0 159017000 141027000 125113000 111011000 33925000 30010000 21000 -6000 125092000 111017000 125092000 111017000 805270000 830486000 0 0 465594000 492489000 0 0 11907000 12894000 0 0 7841000 10630000 0 0 1290612000 1346499000 0 0 0 0 642197000 521721000 21336000 24145000 21336000 24145000 21336000 24145000 663533000 545866000 1311948000 1370644000 663533000 545866000 18890000 18223000 0 0 163372000 146982000 0 0 182262000 165205000 0 0 63792000 156704000 0 0 0 5295000 0 0 125418000 555588000 264872000 1985000 19087000 3884000 0 0 10711000 14151000 3000 154000 10600000 8591000 0 0 229608000 744213000 264875000 2139000 25042000 213000 0 0 436912000 909631000 264875000 2139000 1748860000 2280275000 928408000 548005000 25000000 25000000 25000000 25000000 0 0 292091000 174424000 648047000 522955000 355956000 348531000 673047000 547955000 673047000 547955000 67940000 47705000 0 0 2000000 2000000 0 0 69940000 49705000 0 0 251072000 268508000 0 0 183883000 234515000 0 0 18827000 22158000 21000 0 21741000 21533000 0 0 475523000 546714000 21000 0 72936000 69165000 0 0 232000 19000 0 0 63577000 117958000 0 0 263610000 184309000 75000 50000 3254000 0 0 0 0 685494000 255265000 0 23000 52000 0 0 22146000 6971000 0 0 104572000 71933000 0 0 530350000 1135901000 255340000 50000 1005873000 1682615000 255361000 50000 1748860000 2280275000 928408000 548005000 25000000 522955000 547955000 0 125092000 125092000 25000000 648047000 673047000 25000000 174424000 348531000 547955000 0 125017000 75000 125092000 0 -7350000 7350000 0 25000000 292091000 355956000 673047000 Net profit for the year Net profit for the year 125092000 111017000 131756000 135067000 Change in working capital Change in working capital 124930000 -319085000 381778000 -73001000 12235000 20645000 46912000 64377000 347101000 -116733000 -1594000 -3002000 348695000 -113731000 5230000 10535000 0 25000 7350000 0 Adjustment deposits Adjustment deposits 0 40000 2120000 -10470000 0 21339000 -17514000 6862000 -52642000 -12050000 -256043000 150993000 Change in overdraft facility Change in overdraft facility 213000 -294000 -325986000 124172000 24829000 -29000 213000 242000 25042000 213000 2Staff costsWages and salaries 400,487 415,094 0 0Pensions 38,672 35,204 0 0Other social security costs 3,856 4,830 0 0443,015 455,128 0 0 639 662 0 0 Group Parent company2025/26 2024/25 2025/26 2024/25TDKK TDKK TDKK TDKK1RevenueWind turbine industry 1,458,746 1,447,218 0 0Other revenue 459 453 0 01,459,205 1,447,671 0 0 the board of directors has not been disclosed. 4Financial costsInterest paid to group entities 10,453 24,167 4,465 0Other financial costs 36,434 40,210 4 0Exchange adjustments costs 25 0 0 046,912 64,377 4,469 0 5Tax on profit for the yearCurrent tax for the year 13,690 16,572 21 (4)Deferred tax for the year 20,235 13,438 0 (2)33,925 30,010 21 (6) 125017000 111024000 75000 -7000 Group Parent company2025/26 2024/25 2025/26 2024/25TDKK TDKK TDKK TDKK3Financial incomeInterest received from group entities 9,173 20,113 4,678 76Other financial income 3,062 532 0 012,235 20,645 4,678 76 7Tangible assetsGroupOther fixtures and Prepay-fittings, ments for Land and Plant and tools and tangible buildingsmachineryequipmentfixed assetsTDKK TDKK TDKK TDKKCost at 1 June 2025 1,046,843 748,143 24,686 10,630Additions for the year 2,226 3,812 0 5,771Transfers for the year (2,121) 8,560 0 (8,560)Cost at 31 May 2026 1,046,948 760,515 24,686 7,841Impairment losses and depreciation at 1 June 2025216,357 255,654 11,792 0Depreciation for the year 27,442 39,267 987 0Transfers for the year (2,121) 0 0 0Impairment losses and depreciation at 31 May 2026241,678 294,921 12,779 0Carrying amount at 31 May 2026805,270 465,594 11,907 7,841Interest expenses recognised as part of cost of assets0 2,300 0 21Value of leased assets 0 326,471 0 0 Parent company2026 2025TDKK TDKK8Investments in subsidiariesCost at 1 June 2025 354,071 354,071Cost at 31 May 2026 354,071 354,071Revaluations at 1 June 2025 167,650 60,757Profit/loss for the year 120,476 106,893Revaluations at 31 May 2026 288,126 167,650Carrying amount at 31 May 2026 642,197 521,721Parent companyInvestments in subsidiaries are specified as follows:Registered OwnershipNameofficeinterestWelcon A/S Vejle 100%Conwel A/S Vejle 100%Brande Investerings- og Finansieringsselskab A/SVejle 100%Group Parent company2026 2025 2026 2025TDKK TDKK TDKK TDKK9Participating interestsCost at 1 June 2025 17,371 17,371 17,371 17,371Cost at 31 May 2026 17,371 17,371 17,371 17,371Revaluations at 1 June 2025 6,774 2,643 6,774 2,643Net profit/loss for the year 4,560 4,141 4,560 4,141Received dividend (7,350) 0 (7,350) 0Elimination of intercompany profits on investments(19) (10) (19) (10Revaluations at 31 May 2026 3,965 6,774 3,965 6,774Carrying amount at 31 May 202621,336 24,145 21,336 24,145Investments in participating interests are specified as follows:Registered OwnershipNameofficeinterestWelpaint A/S Vejle 49% 10Contract work in progressWork in progress, selling price 379,978 267,655 0 0Work in progress, payments received on account(383,232) (262,360) 0 0(3,254) 5,295 0 0Recognised in the balance sheet as follows:Contract work in progress under assets 0 5,295 0 0Prepayments received under liabilities (3,254) 0 0 0(3,254) 5,295 0 0 11PrepaymentsPrepayments comprise prepaid expenses regarding insurance premiums, subscriptions and prepaid suppliers. 12EquityThe share capital consists of 25,000,000 shares of a nominal value of DKK 1. No shares carry any special rights. 13Provision for deferred taxProvision for deferred tax at 1 June 2025 47,705 34,250 0 (15)Deferred tax recognised in income statement20,235 13,438 0 (2)Other regulations 0 17 0 17Provision for deferred tax at 31 May 202667,940 47,705 0 0 14Other provisionsBalance at 1 June 2025 2,000 2,000 0 0Balance at 31 May 20262,000 2,000 0 0The expected due dates of other provisions are:Between 1 and 5 years 2,000 2,000 0 02,000 2,000 0 0Other provisions relate to warranty costs on goods sold. Provisions are assessed annually and based on historical data. 15Long term debtDebt out-Debt Debt standing Groupat 1 June at 31 May Instalment after 5 20252026next yearyearsTDKK TDKK TDKK TDKKMortgage loans 285,927 251,072 17,341 176,952Lease obligations 286,261 183,883 55,595 240Joint taxation contributions payable 22,158 18,827 0 0Other payables 21,533 21,741 0 0615,879 475,523 72,936 177,192Debt out-Debt Debt standing Parent Companyat 1 June at 31 May Instalment after 5 20252026next yearyearsJoint taxation contributions payable 0 21 0 00 21 0 0 16Contingent liabilitiesParent companyThe company is jointly taxed with its parent company, CJ Holding ApS (management company), and jointly and severally liable with other jointly taxed entities for payment of income taxes as well as for payment of withholding taxes on dividends, interest and royalties.GroupThe group is jointly taxed with its parent company, CJ Holding ApS (management company), and jointly and severally liable with other jointly taxed entities for payment of income taxes as well as for payment of withholding taxes on dividends, interest and royalties.Brande Investerings- og Finansieringsselskab A/S, Conwel A/S and Welcon A/S are part of a joint VAT registration with the group companies EsInvest A/S, Nordvest A/S and CJ Holding ApS and is jointly and severallyliable with the other companies for the payment of VAT.Other obligationsThe group has entered into operating leases with a total commitment as of 31 May 2026 of DKK 37,711 thousand. DKK 13,418 thousand is due within one year.The group has entered into service agreements on truck services with a total commitment as of 31 May 2026 of DKK 5,241 thousand. DKK 1,631 thousand is due within one year.In addition to the other obligations listed above, the group has entered into agreements for deliveries with supplierswithin the group's ordinary course of business. 17Mortgages and collateralParent companyThe company has issued a surety to the bank as a security for the bank debt for the group companies CJ Holding ApS and Welcon A/S.Welcon Group A/S has provided a guarantee to third parties. As of 31 May 2026, the obligation amounts to DKK 37,995 thousand.GroupAs a security for bank debt, the group has provided company charges of DKK 35,000 thousand. The company charges include claims, inventories, operating equipment and intangible rights. The booked value of these assets amounts to DKK 403,122 thousand as of 31 May 2026.The group has issued a surety to the bank as a security for the bank debt for the group company CJ Holding ApS.Land and buildings at a carrying amount of DKK 805,270 thousand at 31 May 2026 have been provided as securityfor mortgage debt totalling DKK 268,413 thousand.As security for bank debt, the group has issued owner's mortgages, totalling DKK 35,000 thousand in the same landand buildings. 18Related parties and ownership structureControlling interestCJ Holding ApS, Give, DenmarkTransactionsThe company has chosen only to disclose transactions which have not been conducted on an arm's length basis, in accordance with section 98c(7) of the Danish Financial Statements Act.Consolidated financial statementsThe company is reflected in the group report as the parent company CJ Holding ApS, Give, Denmark, central business registration no. 17 08 80 76, which is the largest group in which the company is included as a subsidiary. Group2025/26 2024/25TDKK TDKK19Cash flow statement - adjustmentsFinancial income(12,235) (20,645)Financial costs46,912 64,377Depreciation, amortisation and impairment losses67,696 65,481Gain from sale of assets0 (25)Income from investments in participating interests(4,542) (4,131)Tax on profit for the year33,925 30,010131,756 135,06720Cash flow statement - change in working capitalChange in inventories(17,057) 1,805Change in receivables80,995 (32,477)Change in trade payables, etc.60,992 (288,413)124,930 (319,085) The annual report of Welcon Group A/S for 2025/26 hasbeen prepared in accordance with the provisions of theDanish Financial Statements Act applying to largeenterprises of reporting class C.The accounting policies are identical for both the parentcompany financial statements and the consolidated financialstatements.The annual report for 2025/26 is presented in TDKK.Pursuant to section 96(3) of the Danish FinancialStatements Act, the company has chosen not to disclose theauditor's remuneration.BASIS OF RECOGNITION AND MEASUREMENTIncome is recognised in the income statement as earned,including value adjustments of financial assets andliabilities. All expenses, including amortisation, depreciationand impairment losses, are also recognised in the incomestatement.Assets are recognised in the balance sheet when it isprobable that future economic benefits will flow to thegroup and the parent company and the value of the assetcan be measured reliably.Liabilities are recognised in the balance sheet when it isprobable that future economic benefits will flow from thegroup and the parent company and the value of the liabilitycan be measured reliably.On initial recognition, assets and liabilities are measured atcost. On subsequent recognition, assets and liabilities aremeasured as described below for each individual accountingitem.Certain financial assets and liabilities are measured atamortised cost using the effective interest method.Amortised cost is calculated as the historic cost less anyinstalments and plus/less the accumulated amortisation ofthe difference between the cost and the nominal amount.On recognition and measurement, allowance is made forpredictable losses and risks which occur before the annualreport is presented and which confirm or invalidate mattersexisting at the balance sheet date.CONSOLIDATED FINANCIAL STATEMENTSThe consolidated financial statements comprise the parentcompany, Welcon Group A/S, and subsidiaries in which theparent company, directly or indirectly, holds more than 50%of the voting rights or otherwise has a controlling interest.Entities in which the group holds between 20% and 50% ofthe voting rights and over which it exercises significantinfluence, but which it does not control, are consideredparticipating interests or associates, cf. the group chart.The consolidated financial statements are prepared as aconsolidation of the parent company's and subsidiaries'financial statements by aggregating uniform accountingitems. On consolidation, intra-group income and expenses,holdings of shares, intra-group balances and dividends aswell as realised and unrealised gains and losses on intra-group transactions are eliminated.Investments in subsidiaries are set off against theproportionate share of the subsidiaries' fair value of netassets and liabilities at the acquisition date.Entities acquired or formed during the year are recognisedin the consolidated financial statements from the date atwhich control is obtained. Entities sold during the year arerecognised in the consolidated income statement until thedate of disposal. Comparative figures are not restated foracquisitions or disposals.Acquirees are recognised in the consolidated financialstatements using the purchase method, according to whichthe identifiable assets and liabilities of the acquirees arerevalued at their fair values at the date of acquisition. Thefair value is determined on the basis of transactions in anactive market, alternatively on the basis of generallyaccepted valuation methods. The fair value of investmentproperty is based on a discounted cash flow model,according to which future earnings are discounted.Operating equipment is recognised at fair value on the basisof assessments made by appraisers, which are based on anoverall assessment of machinery.INCOME STATEMENTSEGMENT INFORMATIONInformation is provided on business segments. The segmentinformation is provided in consideration of the group'saccounting policies, risks and management control. Thegroup only operates within one market.REVENUEIncome from customised products is recognised asproduction is carried out, implying that revenuecorresponds to the selling price of contracts completed inthe year (percentage-of-completion method). This methodis applied where the total income and expenses relating tothe contract and the stage of completion at the balance sheetdate can be estimated reliably and it is probable that futureeconomic benefits will flow to the Company.Income from the sale of goods for resale and finished goodsis recognised in the income statement, provided that thetransfer of risk, usually on delivery to the buyer, has takenplace and that the income can be measured reliably and isexpected to be received.Revenue is measured at fair value of the agreedconsideration excluding VAT and taxes charged on behalf ofthird parties. Revenue is net of all types of discountsgranted.RAW MATERIALS AND CONSUMABLESCosts of raw materials and consumables include the rawmaterials and consumables used in generating the year’srevenue.OTHER OPERATING INCOMEOther operating income comprises items of a secondarynature relative to the company's activities, including gainson the sale of intangible assets and items of property, plantand equipment as well as payroll refunds.OTHER OPERATING COSTSOther operating costs comprise items of a secondary naturerelative to the company's activities.OTHER EXTERNAL EXPENSESOther external expenses include expenses related todistribution, sale, advertising, administration, premises, baddebts, payments under operating leases, etc.STAFF COSTSStaff costs include wages and salaries, including holiday payand pensions, as well as other social security contributions,etc. made to the entity's employees. The item is net ofrefunds made by public authorities.DEPRECIATION, AMORTISATION AND IMPAIRMENTOF PROPERTY, PLANT AND EQUIPMENTDepreciation, amortisation and impairment of property,plant and equipment comprise the year's depreciation,amortisation and impairment of property, plant andequipment.FINANCIAL INCOME AND EXPENSESFinancial income and expenses are recognised in the incomestatement at the amounts that relate to the financial year.Net financials include interest income and expenses,financial expenses relating to finance leases, realised andunrealised capital/exchange gains and losses on securities,liabilities and foreign currency transactions, amortisation offinancial assets and liabilities and surcharges andallowances under the Danish Tax Prepayment Scheme, etc.INCOME FROM INVESTMENTS IN SUBSIDIARIES AND PARTICIPATING INTERESTSThe proportionate share of the profit/loss for the year ofsubsidiaries is recognised in the parent company's incomestatement after full elimination of intra-groupprofits/losses.The proportionate share of the profit/loss for the year ofparticipating interests is recognised in the parent company'sincome statement after full elimination of intra-groupprofits/losses.TAX ON PROFIT FOR THE YEARThe company is subject to the Danish rules on compulsoryjoint taxation.On payment of joint taxation contributions, the currentDanish income tax is allocated between the jointly taxedentities in proportion to their taxable income. Entities withtax losses receive joint taxation contributions from entitiesthat have been able to use tax losses to reduce their owntaxable profits.Tax for the year, which comprises the current tax charge forthe year and changes in the deferred tax charge, isrecognised in the income statement as regards the portionthat relates to the profit for the year and directly in equity asregards the portion that relates to entries directly in equity.BALANCE SHEETTANGIBLE ASSETSItems of land and buildings, plant and machinery andfixtures and fittings, tools and equipment are measured atcost less accumulated depreciation and impairment losses.The depreciable amount is cost less the expected residualvalue at the end of the useful life. Land is not depreciated.Cost comprises the purchase price and any costs directlyattributable to the acquisition until the date when the assetis available for use. The cost of self-constructed assetscomprises direct and indirect costs of materials,components, sub-suppliers and wages.Interest expenses on loans obtained specifically for thepurpose of financing the manufacturing of items ofproperty, plant and equipment are included in cost over themanufacturing period. All indirect, attributable borrowingcosts are recognised in the income statement.Straight-line depreciation is provided on the basis of thefollowing estimated useful lives of the assets:Useful lifeBuildings 10-25 yearsPlant and machinery 2-25 yearsOther fixtures and fittings,tools and equipment 2-25 yearsThe useful life and residual value are re-assessed annually. Achange is accounted for as an accounting estimate, and theimpact on amortisation/depreciation is recognised goingforward.Gains or losses on the sale of items of property, plant andequipment are recognised in the income statement underother operating income or other operating costs,respectively.INVESTMENTS IN SUBSIDIARIES AND PARTICIPATING INTERESTSInvestments in subsidiaries, associates and participatinginterests are measured at the proportionate share of the netasset value of the entities, calculated on the basis of thegroup's accounting policies, plus or less unrealised intra-group gains or losses and plus or less any remaining value ofpositive or negative goodwill stated according to thepurchase method. Negative goodwill is recognised in theincome statement on acquisition. Where the negativegoodwill relates to contingent liabilities having been takenover, the negative goodwill is not recognised until thecontingent liabilities have been settled or no longer exist.Investments in subsidiaries, associates and participatinginterests with a negative net asset value are measured atDKK 0, and the carrying amount of any receivables fromthese entities is reduced to the extent that they areconsidered irrecoverable. If the parent company has a legalor constructive obligation to cover a deficit that exceeds thereceivable, the balance is recognised under provisions.Net revaluations of investments in subsidiaries, associatesand participating interests are taken to the net revaluationreserve according to the equity method in so far as that thecarrying amount exceeds the cost. Dividends fromsubsidiaries which are expected to be declared before theannual report of Welcon Group A/S is adopted are not takento the net revaluation reserve.Acquirees are accounted for using the purchase method, seethe above description of consolidated financial statementsand calculation of goodwill.DEPOSITSDeposits are measured at amortised cost.IMPAIRMENT OF FIXED ASSETSThe carrying amount of intangible assets, items of property,plant and equipment and investments in subsidiaries andparticipating interests is tested annually for impairment,other than what is reflected through normal amortisationand depreciation.Where there is evidence of impairment, an impairment testis performed for each individual asset or group of assets.Write-down is made to the lower of the recoverable amountand the carrying amount.The recoverable amount is the higher of the net presentvalue and the value in use less expected costs to sell. The netpresent value is determined as the present value of theanticipated net cash flows from the use of the asset or groupof assets and the anticipated net cash flows from thedisposal of the asset or group of assets after the end of theiruseful life.STOCKSStocks are measured at cost using the FIFO method. Wherethe net realisable value is lower than the cost, inventoriesare recognised at this lower value.The cost of goods for resale, raw materials and consumablescomprises the purchase price plus delivery costs.The cost of finished goods and work in progress includes thecost of raw materials, consumables, direct cost of labour andproduction/production overheads.Production overheads include the indirect cost of materials,wages and salaries as well as maintenance and depreciationof production machinery, buildings and equipment andexpenses relating to plant administration and management.Borrowing costs are not recognised in the cost.RECEIVABLESReceivables are measured at amortised cost.An impairment loss is recognised if there is objectiveevidence that a receivable or a group of receivables isimpaired. If there is objective evidence that an individualreceivable is impaired, an impairment loss for thatindividual asset is recognised.CONTRACT WORK IN PROGRESSContract work in progress is measured at the selling price ofthe work performed. The selling price is measured byreference to the stage of completion at the balance sheetdate and the expected aggregate income from the individualwork in progress. The stage of completion is determined asthe share of the expenses incurred relative to the expectedtotal expenses for the individual work in progress.Where the selling price of work in progress cannot beestimated reliably, the selling price is measured at the lowerof costs incurred and net realisable value.The individual work in progress is recognised in the balancesheet under receivables or payables. Net assets comprise thesum of work in progress where the selling price of the workperformed exceeds invoicing on account. Net liabilitiescomprise the sum of work in progress where invoicing onaccount exceeds the selling price.Selling costs and costs incurred in securing contracts arerecognised in the income statement as incurred.PREPAYMENTSPrepayments recognised under 'Current assets' comprisesexpenses incurred concerning subsequent financial years.CASH AND CASH EQUIVALENTSCash and cash equivalents comprise cash and deposits atbanks.EQUITYRESERVE FOR NET REVALUATION ACCORDINGTO THE EQUITY METHODThe reserve for net revaluation according to the equitymethod in the company's financial statements comprises netrevaluation of investments in subsidiaries and participatinginterests relative to the cost.PROVISIONSProvisions comprise expected expenses relating to serviceand warranty commitments to repairs within the warrantyperiod. The warranty period on wind turbine towers andfoundations is 5 years. The provisions are measured andrecognised on the basis of experience with warranty work.INCOME TAX AND DEFERRED TAXCurrent tax liabilities and current tax receivables arerecognised in the balance sheet as the estimated tax on thetaxable income for the year, adjusted for tax on the taxableincome for previous years and tax paid on account.The company and all its Danish group entities are taxed on ajoint basis. The current income tax charge is allocatedbetween the jointly taxed entities relative to their taxableincome. Tax losses are allocated based on the full absorptionmethod. The jointly taxed entities are eligible for the DanishTax Prepayment Scheme.Joint taxation contributions payable and receivable arerecognised in the balance sheet as 'Joint taxationcontributions receivable' or 'Joint taxation contributionspayable’.Deferred tax is measured according to the liability methodin respect of temporary differences between the carryingamount of assets and liabilities and their tax base, calculatedon the basis of the planned use of the asset and settlement ofthe liability, respectively. Deferred tax is measured at netrealisable value.Deferred tax is measured according to the tax rules and atthe tax rates applicable in the respective countries at thebalance sheet date when the deferred tax is expected tocrystallise as current tax.LIABILITIESFinancial liabilities are recognised on the raising of the loanat the proceeds received net of transaction costs incurred. Onsubsequent recognition, the financial liabilities are measuredat amortised cost, corresponding to the capitalised value,using the effective interest method. Accordingly, thedifference between the net proceeds and the nominal value isrecognised in the income statement over the term of the loan.Mortgage debt is thus measured at amortised cost, which forcash loans corresponds to the outstanding debt. For bondloans, amortised cost corresponds to an outstanding debtcalculated as the underlying cash value of the loan at the timeof borrowing, adjusted by amortisation of the valueadjustment of the loan at the time of borrowing.Other liabilities, which include trade payables, payables togroup entities and other payments, are measured atamortised cost, which is usually equivalent to nominal value.DEFERRED INCOMEDeferred income recognised under 'Current liabilities'comprises payments received concerning income insubsequent financial years.FOREIGN CURRENCY TRANSLATIONOn initial recognition, foreign currency transactions aretranslated applying the exchange rate at the transaction date.Foreign exchange differences arising between the exchangerates at the transaction date and at the date of payment arerecognised in the income statement as financial income orfinancial expenses. If foreign currency instruments areconsidered cash flow hedges, any unrealised valueadjustments are taken directly to a fair value reserve under‘Equity’.Receivables and payables and other monetary itemdenominated in foreign currencies are translated at thexchange rates at the balance sheet date. The differencbetween the exchange rates at the balance sheet date and thdate at which the receivable or payable arose or warecognised in the latest financial statements is recognised inthe income statement as financial income or financiaexpenses.CASH FLOW STATEMENTThe cash flow statement shows the group's cash flows for thyear, broken down under cash flows from operatinginvesting and financing activities, the year's changes in cashand cash equivalents and the group's cash and cashequivalents at the beginning and at the end of the year.The cash flow effect of additions and disposals of entities ishown separately under cash flows from investing activitiesThe cash flow statement includes cash flows from acquiredentities from the time of acquisition, and cash flows from soldentities are included until the date of sale.CASH FLOWS FROM OPERATING ACTIVITIESCash flows from operating activities are stated as the group'profit or loss for the year, adjusted for non-cash operatingitems, changes in working capital and paid income taxesDividend income from investments is recognised unde‘Interest income and dividend received’.CASH FLOWS FROM INVESTING ACTIVITIESCash flows from investing activities comprise paymentsrelated to the acquisition and sale of entities and activities aswell as intangible assets, property, plant and equipment andinvestments.CASH FLOWS FROM FINANCING ACTIVITIESCash flows from financing activities comprise changes in thesize or composition of the group's share capital and relatedcosts, as well as the raising of loans, repayment of interestbearing debt and payment of dividends to shareholders.CASH AND CASH EQUIVALENTSCash and cash equivalents comprise cash.FINANCIAL HIGHLIGHTSDefinitions of financial ratios.Return on assets Earnings before interest and taxes (EBIT) x 100Average assetsSolvency ratioEquity at year end x 100Total assetsReturn on equityNet profit for the year x 100Average equity true Welcon Group A/S Vejlevej 270 7323 Give 43851152 Vejle Sønderbrogade 16 8700 Horsens Give Jens Risvig Pedersen CEO Carsten Risvig Pedersen Morten Breum-Leer Jens Risvig Pedersen Chairman STATEMENT BY MANAGEMENT ON THE ANNUAL REPORTThe Board of directors and Executive board have today discussed and approved theannual report of Welcon Group A/S for the financial year 1 June 2025 – 31 May 2026.The annual report is prepared in accordance with the Danish Financial Statements Act.In our opinion, the consolidated financial statements and parent financial statementsgive a true and fair view of the company and the group financial position at 31 May 2026and of the results of the group and the company operations and consolidated cash flowsfor the financial year 1 June 2025 - 31 May 2026.In our opinion, management's review includes a fair review of the matters dealt with inthe management's review.Management recommends that the annual report should be adopted at the generalmeeting. TO THE SHAREHOLDER OF WELCON GROUP A/S OPINIONWe have audited the consolidated financial statements andthe parent company financial statements of Welcon GroupA/S for the financial year 1 June 2025 - 31 May 2026, whichcomprise a summary of significant accounting policies,income statement, balance sheet, statement of changes inequity and notes, for both the group and the parentcompany as well as consolidated cash flow statement. Theconsolidated financial statements and the parent companyfinancial statements are prepared under the DanishFinancial Statements Act.In our opinion, the consolidated financial statements andthe parent company financial statements give a true and fairview of the group and the parent company's financialposition at 31 May 2026 and of the results of the group andthe parent company's operations and consolidated cashflows for the financial year 1 June 2025 - 31 May 2026 inaccordance with the Danish Financial Statements Act. BASIS FOR OPINIONWe conducted our audit in accordance with InternationalStandards on Auditing (ISAs) and the additionalrequirements applicable in Denmark. Our responsibilitiesunder those standards and requirements are furtherdescribed in the “Auditor's responsibilities for the audit ofthe consolidated financial statements and parent company ”section of our report. We are independent of the group inaccordance with the International Ethics Standards Boardfor Accountants' Code of Ethics for ProfessionalAccountants (IESBA Code) and the additional requirementsapplicable in Denmark, and we have fulfilled our otherethical responsibilities in accordance with theserequirements and IESBA Code. We believe that the audievidence we have obtained is sufficient and appropriate toprovide a basis for our opinion. MANAGEMENT'S RESPONSIBILITIES FOR THE CONSOLIDATED FINANCIAL STATEMENTS AND THE FINANCIAL STATEMENTSManagement is responsible for the preparation oconsolidated financial statements and parent companyfinancial statements, that give a true and fair view inaccordance with the Danish Financial Statements Act andfor such internal control as management determines isnecessary to enable the preparation of the consolidatedfinancial statements and the parent company financiastatements that are free from material misstatementwhether due to fraud or error.In preparing the consolidated financial statements andparent company financial statements, management isresponsible for assessing the group's and the parentcompany's ability to continue as a going concern, disclosingas applicable, matters related to going concern and usingthe going concern basis of accounting in preparing theconsolidated financial statements and parent companyfinancial statements unless management either intends toliquidate the group or the company or to cease operationsor has no realistic alternative but to do so. AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PARENT COMPANY FINANCIAL STATEMENTSOur objectives are to obtain reasonable assurance aboutwhether the consolidated financial statements and parentcompany financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, andto issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance, but is nota guarantee that an audit conducted in accordance with ISAsand the additional requirements applicable in Denmark willalways detect a material misstatement when it exists.Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, theycould reasonably be expected to influence the economicdecisions of users taken on the basis of these consolidatedfinancial statements and parent company financialstatements.As part of an audit conducted in accordance with ISAs andthe additional requirements applicable in Denmark, weexercise professional judgement and maintain professionalscepticism throughout the audit. We also:▪ Identify and assess the risks of material misstatement ofthe consolidated financial statements and parentcompany financial statements, whether due to fraud orerror, design and perform audit procedures responsive tothose risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resultingfrom fraud is higher than for one resulting from error asfraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override ofinternal control.▪ Obtain an understanding of internal control relevant tothe audit in order to design audit procedures that areappropriate in the circumstances, but not for the purposeof expressing an opinion on the effectiveness of thegroup's and the parent company's internal control.▪ Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates andrelated disclosures made by management.▪ Conclude on the appropriateness of management's use ofthe going concern basis of accounting in preparing theconsolidated financial statements and parent companyfinancial statements and, based on the audit evidenceobtained, whether a material uncertainty exists related toevents or conditions that may cast significant doubt onthe group's and the parent company's ability to continueas a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention inour auditor's report to the related disclosures in theconsolidated financial statements and parent companyfinancial statements or, if such disclosures areinadequate, to modify our opinion. Our conclusions arebased on the audit evidence obtained up to the date ofour auditor's report. However, future events orconditions may cause the group and the company tocease to continue as a going concern.▪ Evaluate the overall presentation, structure and contentsof the consolidated financial statements and parentcompany financial statements, including the disclosures,and whether the consolidated financial statements andparent company financial statements represent theunderlying transactions and events in a manner thatgives a true and fair view.▪ Plan and perform the group audit to obtain sufficienappropriate audit evidence regarding the financialinformation of the entities or business units within thegroup as a basis for forming an opinion on the GroupFinancial Statements and the Parent Company FinancialStatements. We are responsible for the direction,supervision and review of the audit work performed forpurposes of the group audit. We remain solelyresponsible for our audit opinion.We communicate with those charged with governanceregarding, among other matters, the planned scope andtiming of the audit and significant audit findings, includingany significant deficiencies in internal control that weidentify during our audit. Moreover, it is our responsibility to consider whether management's review provides the information required under the Danish Financial Statements Act.Based on the work we have performed, we conclude that management's review is in accordance with the consolidated financial statements and parent company financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of management's review.STATEMENT ON MANAGEMENT'S REVIEWManagement is responsible for management's review.Our opinion on the consolidated financial statements andparent company financial statements does not covermanagement's review, and we do not express any form oassurance conclusion thereon.In connection with our audit of the consolidated financiastatements and parent company financial statements, ourresponsibility is to read management's review and, in doingso, consider whether management's review is materiallyinconsistent with the consolidated financial statements andparent company financial statements or our knowledgeobtained during the audit, or otherwise appears to bematerially misstated. Horsens Cedra Godkendt Revisionsaktieselskab 37543128 Michael Mortensen State Authorised Public Accountant mne34108 Annual report Auditor's report on audited financial statements EasyBRL Tagger 2025-06-01 2026-05-31 2024-06-01 2025-05-31 2026-10-06 Reporting class C, large enterprise 2026-10-06 37543128 Cedra Godkendt Revisionsaktieselskab Sønderbrogade 16 8700 Horsens Opinion Basis for Opinion 2026-10-06 Michael Mortensen State Authorised Public Accountant mne34108 37543128 Cedra Godkendt Revisionsaktieselskab Sønderbrogade 16 8700 Horsens Sparekassen Kronjylland 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0