Capnor Weasel Bidco Oyj, Interim report January – March 2025

Interim Report for the first quarter of 2025

First quarter highlights

• Revenue increased by 17% to MEUR 23.8 (20.3)
• EBITDA increased to MEUR 1.8 (-3.1), corresponding to 8% (-15%) EBITDA margin
• EBIT increased to MEUR -1.8 (-5.8), corresponding to -8% (-29%) EBIT margin
• Operational Cash Flow decreased to MEUR 4.0 (10.4)

First quarter highlights

• Revenue increased by 17% to MEUR 23.8 (20.3)
• EBITDA increased to MEUR 1.8 (-3.1), corresponding to 8% (-15%) EBITDA margin
• EBIT increased to MEUR -1.8 (-5.8), corresponding to -8% (-29%) EBIT margin
• Operational Cash Flow decreased to MEUR 4.0 (10.4)

*  FY 2024 included MEUR 1.8 adjustments related to strategic analysis of iLOQ’s full sales potential together with restructuring costs. These costs have
    been excluded in the Adjusted EBITDA, EBIT and Operational Cash Flow figures above.

Management overview of the first quarter

During the first quarter of 2025, iLOQ Group’s revenue increased by 17% compared to the corresponding period of the previous year; however, when excluding some material delivery related sales to external manufacturing partners, the revenue growth was 21% (Q1/2025 vs. Q1/2024.) Even though there are major geopolitical and economic uncertainties, clear signs of gradual recovery have been seen especially in Sweden and Finland. Also, demand in the public sector and rental housing segment has been solid. In the US, sales fell short of expectations as certain major projects scheduled for Q1 were postponed to Q2, with customers hesitating in their decision making as the signs of growing trade barriers such as tariffs have increased uncertainty. Still, sales in the US were materially above last year. Similarly, in S50 Critical Infrastructure segment, decision making has been delayed to some extent. Despite improved profitability quarterly operational cash flow decreased compared to the same period of the previous year mainly due to short-term working capital changes and somewhat higher investments.

Key quarterly performance metrics for the reporting period:

• EBITDA amounted to MEUR 1.8 (-3.1), corresponding to 8% (-15%) EBITDA margin.

• EBIT amounted to MEUR -1.8 (-5.8), corresponding to -8% (-29%) EBIT margin.

• Operational cashflow was MEUR 4.0 (10.4).

In current macroeconomic and geopolitical challenges, iLOQ Ltd, a subsidiary of Capnor Weasel Bidco Oyj, is taking measures to secure its growth and competitiveness. As part of such measures, iLOQ Ltd has launched change negotiations within the Group to adapt its organizations and staffing to the current market conditions and to prepare for the future. Today, the Group employs approximately 330 persons. The planned organizational changes are expected to lead to a permanent reduction of approximately 45 positions globally and the change negotiations are expected to be completed soon.

Delays in customer investments are expected to be temporary, and the underlying demand drivers remain intact. iLOQ is well-positioned to continue outperforming the market even during periods of slower activity, leveraging a strong project pipeline, customer relationships, and its focus on innovation. iLOQ has invested into its future growth strategy by developing a full potential plan for sales, a new internal sales incentive model, and a revamped partner program to be rolled out during 2025. The R&D investments are expected to normalize after the previous years’ large development programs being soon finalized and new products launched onto the markets. The long-term prospects remain strong as digital solutions continue to outgrow mechanical locking systems.

Quarterly Information

Declaration of the Board

We confirm that, to the best of our knowledge, the condensed unaudited financial statements give a true and fair view of the Group’s assets, liabilities, financial position and results of operations for the period. We also confirm, to the best of our knowledge, that the management overview includes a fair review of important events that have occurred during the first quarter of 2025.

Espoo, May 15, 2025

                                                     Heikki Hiltunen                                             Magnus Hammarström

                                                  President and CEO                                              Member of the Board

INCOME STATEMENT

BALANCE SHEET

STATEMENT OF CASH FLOWS

Definitions of alternative performance measures

1. EBITDA = EBIT before depreciation, amortisation and impairments

2. Operational Cash Flow = EBITDA + Change in trade and other receivables + Change in inventory + Change in trade and other payables + Change in provisions + Investments in intangible assets + Investments and Payments in tangible assets. Operational Cash Flow is used internally by the group to follow EBITDA which takes into account investments and changes in working capital

3. Operational Cash Flow % = Operational Cash Flow / Revenue

4. Adjusted EBITDA, Adjusted EBIT and Adjusted Operational Cash Flow = Same as above but excluding an impact of MEUR 1.8 adjustments related to strategic analysis of iLOQ’s full sales potential together with restructuring costs. These costs have been excluded in the Adjusted EBITDA, Adjusted EBIT and Adjusted Operational Cash Flow figures above.

CONTACT

Additional information about the company can be found on the corporate website www.iloq.com. The company can be contacted by e-mail, vasb@vybd.pbz

For questions concerning this report please contact:

Heikki Hiltunen

CEO and President

Urvxxv.Uvyghara@vybd.pbz

Jukka Havia

CFO

Whxxn.Univn@vybd.pbz

Attachments

• Capnor Weasel Bidco Oyj Q1 2025 (pdf)