Sustainability & Annual Report 2021

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SUSTAINABILITYCOPPERSUSTAINABLESOLUTIONS&FINANCIALREPORT

THE YEAR 2021 IN BRIEF CEO PAUL GUSTAVSSON ELCOWIRES LOW-CARBON AND RECYCLED COPPER COMPANY SUSTAINABILITYBUSINESSBUSINESSBUSINESSOVERVIEWUNITRODUNITRAILUNITHIGHVOLTAGEBUSINESSUNITSPECIALSOURCOMMITMENTSSUSTAINABLEOPERATIONSPEOPLEANDSOCIETYPERFORMANCECFOTHOMASLEJDSTRÖMFINANCIALREPORTCONTENTS402214104368182628303239With an annual production of 300,000 tons Elcowire is one of the largest manufacturers in Europe of copper wire rod, wires, stranded conductors, profiles and overhead catenary systems made from copper, copper alloys and aluminum. The profiles can be formed into virtually any shape and dimension.

SUSTAINABILITY REPORT 3 THE YEAR 2021 IN BRIEF NEWS 2022: Elcowire Group completes acquisition of German KME’s copper wire rod, wire and strands, doubling its production capacity to 300,000 tonnes per year. 10 993 MSEK NET SALES 99 MSEK EBITA 184 EMPLOYEES CODE OF CONDUCTSOLUTIONS:COPPERLOW-CARBONELCOWIRE’SLESSTHANHALFOFTHEGLOBALAVERAGECO2PERKGOFCOPPERREADMOREONPAGE6

CEO PAUL GUSTAVSSON Doubling the size of the company through the German acquisition in early 2022, Elcowire seems to have really strong growth ambitions. How would you describe the current development of the Group? Obviously, we want to continue strengthening the position we already have as an independent copper solutions group, and Elcowire wants to be known as the most sustainable supplier in ourThemarkets.acquisition in 2022 of KME’s Rods and Wire operations with almost 200 employees doubles our rod production capacity and makes us geo graphically even more com CEO Paul Gustavsson comments on 2021, the important acquisition in 2022, and on the ambition to make Elcowire an even stronger force in its markets based on its sustainability performance and and its support to decarbonizing society. petitive in Europe, reducing distances and delivery times to many important customers. It also adds new state-of-the-art metallurgic competence to the expertise we already had, and we get a completely new offe ring within wire and strand. As the integration of this acquisition progresses, we will have taken another giant step. Elcowire aims to be a strategic and sustainable partner for customers that are key to the ongoing electrification tran sition in society – the electri fication of transports and the development of renewable/ fossil-free energy sources as well as contributing to a modern and sustainable infrastructure.

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CEOINTERVIEW WITH ”ELCOWIRE WANTS TO BE KNOWN AS THE

SUPPLIERSUSTAINABLEMOSTINOURMARKETS”

“Elcowire aims to be a strategic and sustainable partner for companies that are key to the ongoing electrifi cation transition in society.”

CEO Can you summarize the year 2021 for Elcowire?

INTERVIEW WITH

The year showed strong de mand. In all, we managed well to serve our customers despite the pandemic and its challenges such as supply chain ruptures and high levels of employee absence, and just as the year before it eventually became a good year for us where we strengthened our positions. Through our divestment of the business in China we also beca me more focused as a Group. What makes Elcowire’s offering unique and how does it stand out in the competition? Firstly, our independence on the market stands out since we have no mines or cathode production to distract us from our core business: supplying wire-rod based copper solu tions, essential for the electri cal and infrastructure industries. This is our true focus. Secondly, I would highlight our people’s high level of metallurgic knowledge, combi ned with in-depth understan ding of our customers’ applica tions. This knowledge has been developed through our long and close relationships with demanding experts on the customer side. Thirdly, we are well-positio ned to offer sustainable copper products in terms of low carbon content as well as long-lived solutions especially in the rail market, which is becoming the new industry standard as sus tainability will be a necessity in all tomorrow’s businesses. Yes, please expand in Elcowire’s positioning as the most sustaina ble copper supplier. What is it you want to achieve and how are you preparing for it? Electrification is replacing fossil fuels in the ongoing tran sition toward net-zero carbon emissions. Our copper products are used in the electrification and in the transition to renewa ble energy, and they should contribute to decarbonisation everywhere by having the lowest possible carbon foot print. The message is clear: we can offer a copper product with much lower footprint than others, which will help custo mers meet their climate targets. In general, we currently see an ongoing race in the metal industries to secure a position as “The Low Carbon Supplier.”

For the copper industry, steel is the obvious benchmark. For copper, automotive customers are perhaps the most obvious OEMs to stand first in line, but others are following suit. For example, pilot projects within offshore windpower are already ongoing. Another market-driven factor is our sustainable, long-lived train/rail solutions such as the Valthermo products. This is also a very natural development for us – to ensure that we have the capacity to deliver tomorrow’s solutions based on advanced alloyLastmaterials.butnotleast, we are preparing to meet growing sustainability requirements from authorities in EU. Fulfilling them will help determine how well our brand will be respected going forward. Transparent reporting is one of those impor tant requirements. That must sound positive for Elcowire’s future? Of course. World demand is rising sharply. If you look at an electric car, the copper content is several times higher than in a fossil fuel-driven car. And for the train/rail industry, producing the most sustainable transports we know, copper or alloy solutions are essential.

What are your expectations for 2022 and the coming years? In 2021, we have invested in new capacity, but also in machines and equipment as well as in our IT systems, our people’s competence and in the orga nisation. So, 2021 has made us ready to harvest, and with the acquisition we will be ready for the future. There will certainly be further challenges following the pandemic, and the war in Ukraine with all its unfortunate effects is certainly one of them. But we are prepared to meet challenges, serve our current and new customers and conti nue our way forward.

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“The message is clear: we can offer a copper product with much lower footprint than others, which will help customers meet their climate targets.”

COPPERLOW-CARBON

COPPERANDLOW-CARBONELCOWIRE´SRECYCLED

Elcowire serves the electrical and infrastructure industries as one of Europe’s leading suppliers of wire-rod based products and services, essential for electrification.Thevalidated process to calcu late the Low-carbon Copper foot print from cradle to Elcowire gate includes mining, milling, smelting, refining, inbound transports, production, auxiliary bulk good and chemicals. A full Environmental Product Declaration (EPD) will be the next step to verify emissions, see fact box next page. The copper cathodes for Elcowire’s Low-carbon Copper as well as its Recycled Copper are produced in Sweden, Finland and Norway.

FIRST DURINGCOPPERLOW-CARBONDELIVERIESSTARTEDTHEYEAR

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Elcowire offers copper products with much lower footprint than others. This will help customers meet their climate targets. The Low-carbon and Recycled Copper options both have very similar footprints in terms of the low CO 2 emissions per kg.

With less than half of the CO 2 emissions per kg of copper, Elcowire helps accelerate the world’s journey to reduce carbon emissions and reach net zero in 2050.

Elcowire wants to set an example by producing semi-finished and finished products that have a low impact on nature and the climate. The copper cathodes come from mines and smelters in Sweden, Finland and Norway. Here, cathode production has undergone a substantial transformation due to electrification of various stages of theTheprocess.Low-carbon Copper has also been made possible by a very efficient ore concentration process and a world-class green energy mix.

Electrified giant trucks is part of the operations in producing the Low-carbon Copper. Greenhouse Gas Protocol with a relevant impact on the final carbon footprint, from cradle to Elcowire gate.The calculations have been made by consultancy WSP in accordance with the GHG Protocol Product Standards (Product Life Cycle Accounting and Reporting).Readmore on page 32.

HOW IS COPPERLOW-CARBONPRODUCED?

COPPERLOW-CARBON

SUSTAINABILITY REPORT 7

WHAT DOES IT MEAN?

The statement: ” less than half of the CO 2 emissions per kg copper ” is based upon comparison per kg of copper quoted by the International Copper Association (ICA). When calculating the footprint, Scope 1, 2, and 3 emissions have been included, with all categories in the EPD IS THE NEXT STAGE

To satisfy customers require ments for a generally valid verification instrument, the next step in Elcowire’s process to verify the carbon footprint of its Low-carbon and Recycled copper pro ducts will be to complete an Environmental Product Declaration according to ISO 14025, based on a life-cycle assessment approach.

2007 Acquired by Liljedahl Group MANNHEIM 1899 Isolation AG, Insulated Wire Factory 1970 Becomes a part of the new founded Kabel und Draht Group under Brown Boveri & CIES’ ownership 2007 Acquired by Liljedahl Group 2020 Production and products relocated to Helsingborg and Hettstedt

OVERVIEWCOMPANY 8 SUSTAINABILITY REPORT OVERVIEWCOMPANY OUR BUSINESS UNITS BU ROD BU RAIL BU HIGH VOLTAGE BU SPECIALS Annual capacityproductionof300,000 tons of pure and silver, tinand dimensionscastEuropelargestcoppermagnesium-alloyedwirerod.Elcowireisoneofthemanufacturersinwithcontinuousandupcastinrod8–30mm.

Our contact wires, messenger wires, dropper wires and earthing wires are in commercial service around the world. We ensure safe and reliable travelling in inter city, high speed, suburban and urban track and road systems. Our conductor materials are being used in cables for interconnections, off shore wind parks, under ground power links and other applications. We offer our extensive knowledge and products primarily to manufactures of high voltage and extra high voltage cables. Leading provider of drawn and extruded profiles used in various applica tions for energy trans mission.Weare supporting our customers to build up the renewable energy trans mission systems.  OUR HISTORY Our roots date back to the early 1800s as a mechanical workshop. In 1918, there was a new focus on electrical products and the manufacturing of motors and transformers, in particular. This included the addition of new manufacturing technologies.Together with our main customers and suppliers, we have built up a strong and consistent reputation for innovation. We call this the power of continuous improvement.

HELSINGBORG 1799 Count Eric Ruuth establishes a foundry in central Helsingborg 1800 First cast of iron 1920 Division of Elektromekano 1953 Independent 25%Elektrokoppar;company75%ASEA,Ericsson

SUSTAINABILITY REPORT 9 OVERVIEWCOMPANY OUR PRODUCTION UNITS HELSINGBORG We specialise in produ cing wire rod with high surface quality suitable for extruded products. • Casting & Rolling • Extrusion • High voltage cable conductors • Strips • Channel wires • Profile wires • Alloyed profiles HETTSTEDT We have the complete processes for production of overhead contact lines • Casting & Rolling • Drawing and Stranding • Contact wires • Messenger wires • Dropper wires • Earthing wires NEWS 2022: In March 2022, Elcowire Group completed acqui sition of German KME’s copper wire rod, wire and strands, doubling its production capacity to 300,000 tonnes per year. An additional business unit, Wire & Strands will be added. HETTSTEDTHETTSTEDT 1990 Founded as Joint Venture between Walzwerk Hettstedt and Felten & Guillaume Cologne as HFB GmbH 2009 Integration of HFB into the nkt cables/ NKT organization 2019 Acquired by Elcowire Group 2022 KME Mansfeld (MKM) acquired by Elcowire Group and to be operated as a new business unit: Wire & Strands Our drawn wire products cover a diameter range between 8 mm and 0,05 mm. They are made from Elcowire continuous cast wireWerod.manufacture our wires in compliance with European and internatio nal standards. BU WIRE&STRANDS IN2022

With its wire rod products in pure copper as well as silver, tin- and magnesium alloys, Elcowire’s BU Rod is one of the largest rod manufacturers in Europe. Wire rod is also processed into drawn and stranded wires or extruded into rectangular wires and profiles. The BU is characterized by high quality products, reliability in deliveries, attention to detail and strong technical partnership.

THE UNITBUSINESSTODAY

• Internal deliveries in to BU Rail, HV, Wire & Strands & Specials. ROD COMPONENTCORE Rod 8 mm – Continuously casted and rolled, high conductivity, produced from Grade A copper cathodes according to EN-1977 and ASTM B 49 standards or according to customer specifications.

The BU Rod business is totally focused on rod for electrical current purposes, and on three different customer groups:

• Providing rod to leading cable customers, serving mainly construction, installation, automotive and power transmission markets.

THE

• Rod for the Dahrén Group’s (fellow member of the Liljedahl Group) further refinement into enamelled wire, magnet wire, and enamel wire

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RODBUSINESS UNIT

BUSINESS UNIT

SUSTAINABILITY REPORT 11 BU HEAD COMMENTS Although we are pleased with the outcome of 2021, the KME Hettstedt acquisition in 2022 will open new opportunities. It will immediately raise Elcowire’s market share in Europe from a level of 5 percent to approxima tely 10 percent. A promising synergy poten tial is that some of the largest Helsingborg customers can be served from the new facilities in Germany. This is an obvious ad vantage that enables redundan ce and also promises to reduce freight costs in many cases.

126HEADFREDRIK000ADLERCREUTZOFBUSINESSUNIT,ROD ROD, STANDARD 8 MM ROD, ABOVE 8

ROD FOR SUSTAINABILITY

GOING FORWARD Demand for copper rod is rising at a rate of 2 to 4 percent yearly, due to the green transition in society within the energy and transport sectors, including rail and other vehicles, also encompassing infrastructural construction such as charging stations.Historically, our cable maker business is primarily based upon repeat business on yearly contracts, involving between 20 and 30 customers, mainly located in the Nordic countries but also in the Baltics, Austria and the UK. The copper rod orders have been managed by customer’s purchasers, and to a certain extent by production people having an influence on the choice of type of rod to match their process equipment. Introducing rod from Low-carbon Copper as well as from recycled copper will have impact in that it affects the brand and sustainability positioning of customers, sometimes changing their purchases from a commodity-like order to a more strategic decision level, also potentially going one step further to involve the end customer.

Elcowire’s ”Low-carbon Copper” or “Recycled copper” rod products have been produced using copper cathodes enabling a significant reduction of CO2 emissions – more than 50 percent per kg, see page 8-9 for more facts. Copper will play an important role in the sustainability transition to achieve the goal of net-zero CO2 emissions by 2050 set by the EU. MM

OXYGEN FREE COPPERDELIVERED TONS REPORT ”STEADY DEMAND, AND OPPORTUNITIESGROWTHAHEAD” RODBUSINESS UNIT

THE FUTURE MINES ARE CLOSER THAN WE THINK 12 SUSTAINABILITY REPORT RODBUSINESSOutUNITofuse electronic devices are a valuable source of copper to be recycled.

SUSTAINABILITY REPORT 13 RODBUSINESS UNIT

DID YOU KNOW? Did you know that the future copper mines are found around us and in the cities? The primary input material for Elcowire’s recycled copper is electronic scrap. Electronic products that have been circula ted in society can be recycled so that the copper is extracted and can be used again. All for the purpose of improving circularity and lowering the carbon footprint.Elcowire offers two types of copper solutions for wire- and other manufacturing needs: Low-carbon Copper and Recycled Copper. Both with an average footprint of 1.7 kg CO 2 /kg copper (to be compared with average 4.5 kg for standard copper). By recycling waste and using low-carbon materi als we can help accelerate fulfilment of sustainable development goals in the global society.

BUSINESS

UNIT RAIL PROCESSESPRODUCTSINNOVATIVEAND

BUSINESS UNIT 14 SUSTAINABILITY REPORT RAIL Elcowire Rail offers both standard materials and customized solutions for efficient overhead contact line systems for electrically powered rail and electrified road traffic.

• Contact wires are used in rigid overhead conductor rail systems, but also in promising e-highway and e-mobility systems such as trolley buses or trucks.

• BU Rail also offers a wide range of product-related services, such as technical consulting, training material, product investigations, calculations, on-site measurements, recommendations for material, drum selection and installation.

THE UNITBUSINESSTODAY

Active worldwide, with a strong foothold in the central European region, the BU Rail business is focused on a portfolio of efficient overhead contact line systems, the base for electrically powered rail and road traffic.

Our unique Valcond and Valthermo alloy-based contact and messenger wires are both economically and ecologically smart solutions. The choice between materials is typically dependent upon train speed – up to 250 km/h and high-speed.

SUSTAINABILITY REPORT 15 RAILBUSINESS UNIT BU HEAD COMMENTS

8HEAD000JANSIEBERTOFBUSINESSUNIT, RAIL ”UNIQUE SOLUTIONSLONG-LIVEDFORRAILANDE-MOBILITYINFRASTRUCTURE” DELIVERED TONS CONTACT STRANDEDWIRECONDUCTORS

The rail business is projectbased, and flexibility therefore is key. The dimensioning and design of an overhead contact line system and the selec tion of the right materials are determined by application and speed, environmental factors, frequency of passing trains and their energy demand. The KME Hettstedt acquisi tion will strengthen the BU Rail in many respects: Elcowire’s rod production as a feedstock for the Railway products will now be fully controlled by ourselves, and there will be synergy potential to switch some production between our closely located sites.

GOING FORWARD

Valthermo and Valcond copper alloys are efficient solutions recommended for overhead contact wires and messenger wires in order to realize the most sustainable solution in new installations and, at the same time, maintenance offering reduced life cycle costs. For operators and owners of rail infrastructure this opens the opportunity to increase traffic density whilst reducing system wear, as well as CO 2 emissions and life cycle costs. We often say that “Valthermo and Valcond means value.”With the typical project nature of our business, often run by state-owned infra structure owners operating within clear regulation frameworks, our reliability and delivery capacity are crucial qualities.Thebusiness logic depends on long relationships. We rely on having good market intelli gence, which we do have, to as early as possible become involved in project discussions. With our unique solutions we strive to obtain product approvals, and our strength lies in supporting our customers to fullfill their environmental goals. Here, our materials have a great advantage as they – with a lifetime of up to 300% – do not need to be replaced, something which is of course costly.

ELECTRIFIED RAILWAY FOR SUSTAINABILITY

Elcowire’s overhead contact rail solutions are part of tomorrow’s sustainable rail traffic. They have the potential to significantly contribute to reaching ambitious climate targets. By selecting the right alloy and product performance – electric and mechanical – rail operators are getting prepared for the sustainability transition to achieve the goal of net-zero CO2 emissions by 2050 set by the EU.

16 SUSTAINABILITY REPORT RAILBUSINESS UNIT ELECTRIFICATIONFORPRODUCTSSUSTAINABLERAILWAY

”ELCOWIRE IS EXEMPLARY IN ITS SUSTAINABILITY EFFORTS AND AN IMPORTANT PARTNER OF DEUTSCHE BAHN”

ManagerFritzsche,Strategic Procurement DB Netz AG

Kerstin

Together with Technical University of Dresden and Deutsche Bahn we have completed a study on a field test where Elcowire’s Valthermo copper alloy material for overhead contact line systems has been compared to conventional copper and copper alloy materials.

VALTHERMO ADVANTAGES VS. SOLUTIONSCONVENTIONAL

SIGNIFICANTLY LONGER SERVICE LIFE “The results say that using our contact wire materials, with a significantly longer service life than the current conven tional contact wires made of electrolytic copper or highstrength copper-silver alloys, could save wire changes during the technical lifetime of the system,” Frank Pupke com ments, adding: “This benefit is also significant in terms of needing shorter blocking pauses with their associa ted restrictions on the rail network.” So, the basic findings from earlier evaluations are confirmed, although the report also states that reduced main tenance costs of course must be weighed against the higher initial investment costs for higher-quality contact wires. Another aspect to add when looking at investment costs over a lifecycle for Valthermo solutions vis-à-vis the tradi tional copper-silver alloys is the elimination of the impact from volatile silver prices, which makes planning of investment costs easier. Also energy consumption and CO 2 emissions can be significantly reduced over the entire life cycle of an overhead contact line system. This is due to the reduced wear confirmed by the present study, and the possibility of eliminating any readjustment.

SUSTAINABILITY REPORT 17 RAILBUSINESS UNIT

Using the field test method, measurements of the residual contact wire thickness collec ted in maintenance routines are used for statistical evalu ation. This statistical analysis is a very valuable addition to previous manual measurement evaluations.

SUSTAINABLE DESIGNED RAILWAY INFRASTRUCTURE With a positive cost-benefit analysis, the study concludes that “use of higher-quality con tact wires is recommended in terms of a sustainably designed railwayFurthermore,infrastructure.”apositive sign since the study was comple ted is that Elcowire has been invited by Deutsche Bahn to participate in a workshop for the identification of additio nal improvement potential in relation to sustainability and circularity.

Frank ProductPupkeand Quality Manager Elcowire

The conclusion is that the advantages of reduced wear for Valthermo are considerable, above all in that they may save contact wire changes during the technical lifetime of a contact line system. A mutual publication summarises the findings in the study. “In the field test, different contact wire materials have been tested for several years,” says Frank Pupke, product & quality manager for Elcowire Rail, “And the results show that our Valthermo material, CuSn0.1, is less susceptible to wear than the conventional materials, made of electrolytic copper or high-strength cop per-silver alloys.”

BUSINESS UNIT HIGH VOLTAGE PROJECTSINFRASTRUCTURALLARGE 10 SUSTAINABILITY REPORT HIGH VOLTAGEBUSINESS

TheUNITBU

THE UNITBUSINESSTODAY

• The company has long experience with conductor material for these types of high voltage applications, with capabilities for both copper and aluminium conductors in various shapes and sices.

High Voltage offers conductor material in copper and aluminium for advanced high-voltage cable manu facturing. The business is totally focused on large infrastructural projects and offers services and products to manufacturers of high voltage and extra high voltage cables.

• BU High Voltage counts the leading cable manufacturing companies as customers. In collaboration with the customer, Elcowire produces various types of conductors depending on the requirements of the cable, its specification and installation environment (AC or DC, insulation, laying depth etC. Work is progressing on Viking Link, the first submarine cable connection between the UK and Denmark. Elcowire is one of the contractors connected to the project.

Elcowire’s conductor materials are being used in cables for inter connections, offshore wind parks, underground power links and other applications.

SUSTAINABLE ENERGY GENERATION Elcowire plays an important role to satisfy the market demand to generate and transfer energy more efficiently and sustainably, to reach global CO2 targets.

SUSTAINABILITY REPORT 11 HIGH VOLTAGEBUSINESS UNIT BU HEAD COMMENTS

MAIN GOINGDRIVERSFORWARD

The key to success in large projects of this kind is of course to be able to cater for every customer’s special needs. Flexibility is required as infrastructural projects are frequently ramped up or down, for various reasons. Typically, a large project will involve thousands of tons of conductor material. In cases where the cable is laid/installed at sub stantial depths, it will sometimes require aluminium-based solutionsFreights/transports are often a challenge and the transport time required is a critical component, so, custo mised logistics arrangements are necessary for efficient and sustainableElcowire’stransports.Low-carbon cop per profiles enable substantial CO 2 savings in what could be la belled as “Green projects,” and pilot sales in small quantities have already occurred. Large offshore wind parks serve as good examples of such poten tial projects.

17FREDRIK000ADLERCREUTZHEAD OF BUSINESS UNIT, HIGH VOLTAGE DELIVERED TONS SUSTAINABILITY REPORT 19 ”WE CATER FOR EVERY ALUMINIUMCOPPERSPECIALCUSTOMER´SNEEDS”CABLECONDUCTORSCABLECONDUCTORS

The global High Voltage market is expected to grow signifi cantly in the coming years. Main drivers are increased grid capacity, continuous investments in green energy as well as electrification and digitalisation.

Windparkmill in Oresund between Sweden and Denmark.

ALWAYSINVISIBLE,SOMETIMESYETPRESENT 20 SUSTAINABILITY REPORT HIGH VOLTAGEBUSINESS UNIT

Generating clean energy in order to reduce global warming.

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Offshore Wind Energy is one of the most important renewable energies solutions. It is a renewable energy production process that has led to incredible innovations in recent years. These advances have all been made with the same aim: to generate clean energy in order to reduce global war ming. It contributes and supports economic growth, employment opportunities and enhances human welfare from its supply chain and life cycle and by replacing fossil fuel.

HIGH VOLTAGEBUSINESS UNIT

We are proud of being one of the suppliers to the high voltage cable to the world’s largest offshore Wind Farm, Dogger Bank, located more than 130 km off the North East coast of England. Elcowire will deliver 800 km Copper Conductor from its High Voltage Business Unit to Dogger Bank Wind Farm, which extends over approx 1700km². Upon completion it will have an installed generation capacity of up to 3.6GW and be capable of powering 6 million British homes.

DOGGER BANK WIND FARM

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10 SUSTAINABILITY REPORT SPECIALSBUSINESS UNIT

The future copper mines are in the cities. Read about how electronic products waste can be recycled and contribute to decarbonisation of today’s society. More on page 12.

BU Specials is developing and delivering extruded and drawn profiles in various shapes, sizes and variants.

FUTUREANCOPPERSUSTAINABLEFORELECTRIFIED BU Specials is a leading provider of copper and copper-alloyed extruded and drawn profiles used in various special applications for energy transmission in vehicles, machines and components.

BUSINESS UNIT SPECIALS

• The product offering comprises a standard set of products as well as custom made designs, dimensions and materials.

• BU Specials provides soft extruded and drawn copper in endless lengths, as well as copper alloyed materials and aluminium to produce energy efficient systems for electrical applications, energy transmission, and contact materials. Furthermore, rivets and fasteners used across electrical industry, car manufacturing industry, architecture, infrastructure and construction.

SUSTAINABILITY REPORT 11 SPECIALSBUSINESS UNIT BU HEAD COMMENTS

4 000PAULGUSTAVSSONHEAD OF BUSINESS UNIT, SPECIALS DELIVERED TONS SUSTAINABILITY REPORT 23 ”NEWVALUE-ADDING”SOLUTIONSWITHHIGH PROFILESALLOYSWIRES

BU Specials is our smallest BU, but at the same time it has the highest value-adding. We have started a development project with a multi-year framework to map potential new products and solutions and already started on the development. We currently serve some 25+ customers, all with their own unique products and solutions incorporating Elcowire-desig ned copper or copper-alloyed profiles, which we manufacture on our own designed conform machines, with own casted pre-material. This enables us to have full control of the com plete process from raw materi al to finished product including the design of the machines making the product. The market opportunities are endless and the wide range of applications makes this area exciting and very unique. Many of the products we deliver are used for life changing applica tions, be it in medical, trans portation or renewable energy. It is very encouraging to take part of our customers’ innova tive ideas and support them in reaching their objectives when it comes to functionality and sustainability. The ambition is to significantly grow the area organically and through acquisitions.

RENEWABLE ENERGY SYSTEMS We are supporting our customers to build up the renewable energy transmission systems.

24 SUSTAINABILITY REPORT EXCELLENCEDRIVING SPECIALSBUSINESS UNITTheBU is focused on building up a unique set of knowledge to support customers with effective solutions for all kinds of electrical systems.

83 KG

• Battery electric vehicle (BEV): 83 kg of copper.

(SOURCE: IEA International Energy Agency, Paris-France)

• Plug-in hybrid electric vehicle (PHEV): 60 kg of copper.

Average amount of copper in a Battery Electric vehicle (BEV) DID YOU KNOW? In 2021, International Energy Agency states that electric car sales more than doubled to 6.6 million, representing close to 9 percent of the global car market and more than tripling their market share from two years earlier. All the net growth in global car sales in 2021 came from electric cars. So, the market for electric vehicles (EV) is rapidly growing and calls out for large quantities of copper. Car manufacturers launch new products, battery prices decrease and government incentives continue. Copper is essential to EV technology and its supporting infrastructure. How much copper is used in various vehicles?

• Traditional gasoline/diesel engine: 23 kg copper.

• Hybrid electric vehicle (HEV): 40 kg of copper.

SUSTAINABILITY REPORT 25 SPECIALSBUSINESS UNIT

MISSIONVISION

TRUST. We are committed and dedicated to fulfilling our promises. We act in a trustworthy and reliable manner.

COMMITMENTSOUR

RESPONSIBILITY.VALUES We build on and nurture long-term re lationships and we act responsibly towards customers, co-workers, partners, our owner and society.

RESPECT. We listen to and show consideration for one another. We recognise each other’s differences.

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PASSION. Our customers’ success is our passion. It is our priority to meet the needs and challenges of our customers.

MISSION One of the leading suppliers in Europe of products and services based on wire rod for the electrical and infra structure industry with copper and aluminium solutions. By challenging ourselves and continuously improving our processes, we provide solutions for a sustainable world.

MISSIONVISION

SUSTAINABILITY REPORT 27

VISION Together with all our stakeholders; our employees, our customers, our suppliers, our owner and our partners, Elcowire wants to contribute to a sustainable society which is based on our history, know-how and passion.

Lean manufacturing principles for process efficiency has long been the operations philosophy of Elcowire.

28 SUSTAINABILITY REPORT COOINTERVIEW

OPERATIONSSUSTAINABLE

ESZTER DEAN COO & MANAGERGENERAL WITH For Eszter Dean, the production and supply chain challenge she has set is two-fold: to improve both produc tivity and sustainability. In her work as COO, Chief Operations Officer, she has initiated a new type of leadership as well as a new organisation model: “Our aim is to have the whole supply chain mechanism under one roof: logistics, transport manage ment, inventory, production planning and sourcing,” she explains. “And we want to create a ‘No blame’ culture alongside the lean production culture we have in place that aims for smart and standardised work and conti nuousAnotherimprovement.interesting objective is that everyone in Operations should master more than one set of work assignments, to make the whole

• Machinery for Contact wires: Trolley drawing machines

• Development of Copper-Magnesium alloys in cooperation with customers. Material for large transport projects, such as the “German Unity“ transport route, and the Chinese railway infrastructure project “Blueprint“

TURNS WIRE ROD INTO: • High voltage cable conductors • Drawn, welding, earthing wires

• Circularity principles are applied throughout the processes going forward. For copper, most of the operations waste is already recycled. Coils and pallets are already recycled to a very high degree.

OPERATIONS HETTSTEDT With its production focused on customer-specific solutions, Hettstedt Rail is a leading and innovative supplier of strands and wires for railway technology. Contact wire production with a long tradition. Already in 1991 the first order was delivered from the site. Part of the Elcowire Group since 2019.

• Strips • Channel wires

• A sustainability agenda is being developed to meet short and long-term emission targets. We are working on mapping and follow-up of the complete CO2 footprint of our operations, monitoring the KPIs connected and making corrective actions to avoid deviations.

COOINTERVIEW WITH ”A LONG TERM SUSTAINABILITY AGENDA IS BEING DEVELOPED TO MEET FUTURE EMISSION TARGETS.”

• In total 70 Employees (Operations & Sales), whereof 40 in operations

The Elcowire Helsingborg operations rely on long traditions. Copper wire production in Helsingborg started already in 1953. Elcowire Helsingborg adds value all the way from cathodes through wire rod to profiles. Highly knowledgeable work force creates products for an electrifiedSelf-designedfuture.extrusion machines, also provi ding some customers with tools. About 90 percent of ~140 employees work withinSafetyoperations.andsustainability as guiding lights for everything we do. In daily operations, work is guided by lean manufacturing principles and conti nuousCurrentimprovement.capacityof about 120 000 – 130 000 MT wire rod.

• Another essential part of sustainability within operations is to look after employees, by focusing on health and safety and a continuously improved work environment.

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• International customer base, e.g. from France, Australia, UK, Spain, China. Overall, production is characterized by the fact that the full process is managed in-house (casting to end product).

OPERATIONS HELSINGBORG

• Machinery for Stranded conductors: Tubular and Planetary Stranders

• Stranded conductors

• Profile wires workforce more versatile. And when new people join the production team, there is a completely new approach that enhances productivity: “We use a method called TWI (Training within industry) where a newly hired machine operator beco mes fully productive in only one and a half week,” Eszter says, “before, this process took between four and six weeks.”Circularity is high on Elcowire’s and Eszter’s agenda: “With regard to metals, we are recycling almost eve rything. It is a little bit more difficult with scrap from alloys, where you must produce something else from the scrap, or separate the metals.” However, easy-to-recycle copper is the major scrap fraction, for obvious reasons. Coils and pallets are already circulated to a very high degree. To support further development of the ongoing productivity and sus tainability efforts, Eszter of course needs more brains and hands: “In Helsingborg, we have already put responsibilities in place for environ ment and safety, and in Hettstedt Rail we recently appointed a ‘lean general’ to be my right hand man,” she concludes.

RESOURCESHUMAN

Summer traineeships is another aspect offered in Helsingborg to young people. Contacts like these with local schools is a way to support the next generation of talent and work with succession with people moving into retire ment. New employees and the Code of Conduct Every new employee gets an onboarding kit. One of the most important things in this kit is the Code of Conduct. The Elcowire Code of Conduct states what the company expects from its team as well as from its suppliers. Anti-corruption poli cies that ensure fair competition are at the core of the code. The document also outlines human rights practices, including an anti-discrimination clause and zero tolerance for forced and child labour. To ensure that these policies can be upheld, there is a whist leblowing principle in place that allows every employee to safely report any breach of policy. Local community involvement For Elcowire, serving the local communities is just as impor tant as global impact. Our head office in Helsingborg, Sweden, has for example in 2021 had a trainee program for unemployed people in collaboration with local authorities. After program finish, three positions were offered to participants at the Helsingborg

ANGELIKA STAWOWOSKA HR MANAGER ”WE CONSIDER EACH

GROWTHEMPLOYEE’SASGROWTHFORTHECOMPANY”

30 SUSTAINABILITY REPORT

Diversity Training and education. At Elcowire, we consider each employee’s growth as growth for the company. We have introdu ced our own model for people development, built on regular meetings between managers and their employees, focused on identifying opportunities for training and further insights, and to gain expertise for the job role.

PEOPLE SOCIETYAND site, as well as internships to students from different schools. Head office also initiated a partnership with the local handball club to support their community programmes for the area’s at-risk youth. To provide safe and valuable alternatives for their free time, this afterschool support includes homework assistance as well as health activities, such as giving kids a chance to try handball.

SUSTAINABILITY REPORT 31 RESOURCESHUMAN

PERFORMANCESUSTAINABILITY PERFORMANCESUSTAINABILITY2021

Outcome 2021: Total energy consumption rose in 2021, due to increased production volumes. In total the consumption was 65.2 GWh (62.4), however the energy efficiency improved, from 0.39 to 0.38 kWh/t (tonnes of production), corresponding to an improvement of 7 percent compared to 2018. The direct energy consumption was 48.3 GWh (45.8), and the indirect consumption was 14.6 GWh (14.2), so the direct energy increase (natural gas) was more significant than the indirect (purchased electricity).

32 SUSTAINABILITY REPORT ENVIRONMENT Our environmental approach in volves minimising and reducing any impact on the environment, such as to air, land and water. Our operations should not harm the nature and the impact should be newaandpectaspectsConsequently,minimised.environmentalareassessedinrestoalifecycleperspectiverisks.Riskassessmentsarepartofourdailyworkandifainvestmentisconsidered. JONAS SUSTAINABILITYCIARDIOFFICER,HELSINGBORG ULRIKE SUSTAINABILITYSTANDKEOFFICER,HETTSTEDT 402006080 0.60.40.200.40.30.20.10 Total(GWh)energy 2018 202120202019 Energy(kWh/t)intensity Natural gas Electricity 100,00040,00020,000060,00080,000120,000Totalwater(m 3) 2018 202120202019 77 since%2018 5 since%2018 Water intensity (m3/t)

ENERGY Energy consumption for produc tion purposes is based on fuel combustion (natural gas) mainly for melting, and on purchased electricity.Atthesite in Helsingborg, Sweden, energy is recovered from exhaust gases in the shaft furnace for copper rod produc tion. Heat recovery is made from hot gas and then cleaned in a textile filter. Excess heat is distributed to the city of Hel singborg for heating of homes, industry and for district cooling. From 2022, the operations in Hettstedt Rail, Germany, will be run on green electricity, see Carbon footprint on page 32.

The principal raw materials in Elcowire’s processes are metals: copper and aluminum, and process chemicals of various kinds. All facts and data represent Elcowire AB/Helsingborg and Elcowire Rail GmbH/Hettstedt.

of oil emulsion from fluids used in cutting operations. Group total (kg) 2021 2020 2019 Metals Internal Copper scrap 2 020 000 1 233 800 1 137 400 External Copper scrap 1 332 500 1 255 900 1 210 300 Internally recycled Copper 1 332 500 1 255 900 1 210 300 Externally recycled Copper 625 400 1 046 000 1 026 300 Aluminium scrap 85 900 11 300 31 600 Iron/steel scrap 95 000 79 800 90 300 Other waste Wood waste 206 400 170 200 185 600 Electronic/cable 2 400 1 700 2 200 Paper 15 100 8 100 17 000 Plastic 6 200 5 600 4 100 Combustible waste 81 600 58 900 51 800 Hazardous waste Emulsions 740 400 640 300 554 400 Other hazardous waste 152 400 92 600 46 200 LANDFILL RECOVER ENERGY RECYCLING REUSE REDUCE 402006080 0.60.40.200.40.30.20.102018 202120202019 Natural gas Electricity 201005152530 Safety Group 2018 202120202019 LTIFR Number of accidents 100,00040,00020,000060,00080,000120,000Totalwater(m 3) 2018 202120202019 55 since%2018 Water intensity (m3/t) 12,0009,0006,0003,000015,00018,000 0.120.100.080.060.040.020 CO2 emissions(tons) 20212020 CO2 i (COntensity 2/t) Scope 1 emissions Scope 2 emissions since-9%2020

PERFORMANCESUSTAINABILITY SUSTAINABILITY REPORT 33

Outcome 2021: The water consumption increased in 2021 and was 102,661 m3 (86,428), mainly due to a leakage problem at the Helsingborg site, corresponding to a 5 percent improvement of the water use per tonne produced for the Group, compared to 2018.

WASTE Circularity has a long tradition in metal-based industry, and internal metal waste in Elcowire facilities is, to a very high degree, recycled. Our waste handling and processing of materials supports the idea of going from linear flows to circular flows, supporting the idea of circular economy. The waste hierarchy is impor tant to relate to as the main target should be to reduce waste, but second best is to reuse. mainly

WASTE HIERARCHY • Landfill • Recover • Energy • Recycling • Reuse • HazardousReduce waste consists

WATER Water consumption is not very material for Elcowire as it is not a necessity in the production process other than for cooling andAtcleaning.theHelsingborg site a wa ter cleaning facility has earlier been installed, which makes it possible to re-use water. For cooling of the wire rod casting process, the Helsing borg site has installed a cooling tower with several benefits compared to current solution: lower energy use, lower noi se to the surroundings, easy maintenance with access to important parts during opera tion which means reduced down time and improved productivity.

PERFORMANCE

34 SUSTAINABILITY REPORT

CARBON FOOTPRINT Elcowire aims to be a sustaina bility leader in its business, and therefore the carbon footprint is of course strategically im portant. See below and page 11 for the verification process of the footprint of Elcowire’s Low-carbon and Recycled copper products. Carbon footprint from Operations The calculation of CO 2 emis sions from Elcowire operations is based on energy figures and approved conversion factors. across all facilities to prevent the spread of COVID-19

among our workforce. Outcome 2021: The total emissions in 2021 were 17,792.3 tons (17,641.5), a 1-percent absolute increase from 2020 but a very considerable intensity improvement, considering that sales rose by almost 50 percent between the years, from 0.11 to 0.10 t CO 2 /t (tonnes of production), corresponding to a 9 percent improvement compared to 2020. Scope 1 emissions from natural gas, diesel and acetylene were 11,790.1 tons (11,755.7), while Scope 2 emissions from purchased electricity were 6,002.2 tons (5,885.8). 402006080 0.60.40.200.40.30.20.10 Total(GWh)energy 2018 202120202019 Energy(kWh/t)intensity Natural gas Electricity 201005152530 Safety Group 2018 202120202019 LTIFR Number of accidents 100,00040,00020,000060,00080,000120,000Totalwater(m 3) 2018 202120202019 7 since%2018 5 since%2018 Water intensity (m3/t) 12,0009,0006,0003,000015,00018,000 0.120.100.080.060.040.020 CO2 emissions(tons) 20212020 CO2 i (COntensity 2/t) Scope 1 emissions Scope 2 emissions since-9%2020 0.60.40.20 Natural gas Electricity 201005152530 Safety Group 2018 202120202019 LTIFR Number of accidents 100,00040,00020,000060,00080,000120,000Totalwater(m 3) 2018 202120202019 since+7%2020 Water intensity (m3/t) 12,0009,0006,0003,000015,00018,000 0.120.100.080.060.040.020 CO2 emissions(tons) 20212020 CO2 i (COntensity 2/t) Scope 1 emissions Scope 2 emissions since-9%2020

SAFETY Safety is a high-priority area for Elcowire: the inhouse program for safety management aims to prevent injuries at all units and avoid recurrence of a certain type of incident. In general, progress for occupational health and safety is tracked along three key parameters: risk alerts, accidents, and absence. All sites have safety and risk evaluation initiatives according to local needs and conduct reporting monthly to establish common standards across the group. Elcowire has a groupwide zero-accident vision that guides the risk assessment strategy. Since 2012, focus has been on preventing incidents by continuously identifying, registering, and analysing risks. Safety is a collective effort, and each employee is involved with pinpointing at least one potential risk each year. As a re Outcome 2021: 8 LTI cases/accidents (2), and 23.9 LTIFR (6.3). In line with its high-priority ambitions for safety, Elcowire has appointed a safety manager at Helsing borg site, and introduced the measurement standards used by most large industrials in their sustainability reporting. A work-related accident is counted as leading to a Lost-time injury (LTI) case as soon as the injured person cannot work the following full working day. Lost-time injury frequency rate (LTIFR) indicates how many such injury cases an organization has per 1,000,000,000 working hours, which corresponds to a work year for 500 full-time employees. sponse to the unique challenges brought on by the pandemic in 2020 and 2021, we also imple mented a number of measures

SUSTAINABILITY

Third party rating organization EcoVadis has made a first rating of Elcowire AB, landing at the level 62 of a maximum 100 points scale. This corresponds to the level “Good” and will be a stable starting point for further improvements. Elcowire is already on a 70 level for its environmental work, corresponding to the level “Advanced.”

PERFORMANCE

ELCOWIRE AB RECEIVES ECO-VADIS RATING

SUSTAINABILITY SUSTAINABILITY REPORT 35

PRODUCT CARBON FOOTPRINT The calculated emissions from 1 kg of Low-carbon copper from Elcowire is 1.7 kg. This com pares to less than half of the global average emissions from 1 kg of copper. This statement is based upon comparison per kg of copper quoted by the International Copper Association (ICA). When calculating the footprint, Scope 1, 2, and 3 emissions have been included, i.e. all categories in the Greenhouse Gas Protocol with a relevant impact on the final carbon footprint, from cradle to Elcowire gate. The calculations have been made by consultancy Sphera in accordance with the GHG Protocol Product Standards (Product Life Cycle Accounting andTheReporting).calculations have been reviewed by third party DNV according to the general principles in the ISO 14064-3 Standard (Greenhouse Gases – Part 3: Specification with Guidance for the Validation and Verification of Greenhouse Gas Assertions). Elcowire Low-carbon Copper benchmarked against global average and aluminium regarding CO2-emissions (kg CO²/kg copper)

As one of the leading European suppliers of copper products, we are committed to sustainable copper sourcing. We are developing advanced technologies to provide outstanding energysaving products with maximum useful life to enable sustainable solutions.”

PAUL GUSTAVSSON, CEO ”

But the SDG-inspired agenda of Elcowire is much broader than that:“The obvious energy and cli mate improvement profile of our company is what you see from the outside. However, internally, a responsible management of resources and a strong culture rooted in a safe and positive work environment for all employees are the strongest basic elements of our sustainability focus,” says Paul Gustavsson. Elcowire’s sustainability efforts are focused on contributing to the agenda of the global society for the year 2030.

CLEAN ENERGY

36 SUSTAINABILITY REPORT

While clean energy and electrifi cation are clearly at the heart of Elcowire’s mission and business activities, this is just a start for what the company wants to achieve. Providing reliable en ergy and fighting global warming includes continuous reduction of the carbon footprint from Elcowire products and solutions, combined with improved energy efficiency and carbon footprint in the internal production processes as well as in the entire supply chain. RESPONSIBLE MANAGEMENT

AT THE HEART OF ELCOWIRE’S MISSION AND BUSINESS ACTIVITIES

“The SDGs represent a shared commitment in society to sustai nability,” says Elcowire’s CEO Paul Gustavsson. “For Elcowire, it is important to center our sustai nability efforts around this global collaboration between the 193 member states of the UN.”

Since 2015, the most advanced framework to describe this agenda is the UN Sustainable Development Goals (SDGs). These goals, symbolized by 17 colorful icons, recognize that ending world poverty and other human challenges must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests.

PERFORMANCESUSTAINABILITY

Elcowire focus: Read more in each Business Unit’s description of ”The business unit today,” in cluding solution and innovation on focus, pages 10–23.

SDG 16 Peace, justice and strong institutions Promote just, peaceful and inclu sive societies. Elcowire focus: Read more about in People and Society on page 28. SUSTAINABILITY

SDG 8 Decent work and economic growth Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. Elcowire focus: Read more in the CEO interview on page 4 and in Sustainable operations on page 26.

SDG 9 Industry innovation and infrastructure Build resilient infrastructure, promote sustainable industriali zation and foster innovation.

SDG 12 consumptionResponsibleandproduction Ensure sustainable consumption and production patterns.

Elcowire focus: Read more about Sustainability perfor mance on page 30, Sustainable operations on page 26, and in each Business Unit’s description of ”The business unit today,” in cluding solution and innovation focus, pages 10–23.

SUSTAINABILITY REPORT 37 PERFORMANCE

SDG 4 Quality education Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all Elcowire focus: Read more in People and Society on page 28.

ABOUT 2021, CFO THOMAS LEJDSTRÖM ELCOWIRE GROUP’S BOARDFINANCIALPROFIT/LOSSPOSITIONCASHFLOWOFDIRECTORS 4039414243 FINANCIAL REPORT 2021 CONTENTS 38 FINANCIAL REPORT REPORTFINANCIAL

• Despite the pandemic impact on the business operations we have seen continuous strong demands in our markets.

• Elcowire Holding GmbH has subsequently acquired Elcowire Rail GmbH and Elcowire GmbH (newly formed during the year) from the parent company.

• Increased input costs have had an impact and we have put quite a lot of focus in driving efficiency within operations.

CFOINTERVIEW WITH ”BRINGING CONTINUOUS ADDED VALUE TO OUR OWNERS AND STAKEHOLDERS ”

Significant events during the financial year 2021

• The Chinese operation has been divested during 2021. This now completes the consolidation of the group and enables us to focus on expansion on the European market.

Increased costs of inputs, transport and energy will be passed on to the market. Financial instruments and financial risks The Group is exposed through its operations to various types of financial risks related to trade receivables, inventories, loans and derivative instruments. The financial risks consist of financing risk, interest rate risk, price risk, currency risk, credit risk and liquidity risk. The Group has an established financial policy with rules and frameworks for exposure to these risks.

• A significant improvement during the year with more than 100% growth in operating profit.

• Elcowire Group has during the CFO Thomas Lejdström comments on 2021 Year acquired 70% of Elcowire Holding GmbH and is now 100% owner of the company (name changed from Isodraht GmbH).

• To strengthen our european platform, Elcowire has entered into an agreement to acquire KME’s wire rod business in Hettstedt, Germany.

Expected future developments and material risks and uncertainties Demand for our copper and alu minium products in the European market is expected to remain strong in 2022 and to increase. Demand continues to be driven by infrastructure investments and in particular investments related to renewable energy. Energy and electrification

FINANCIAL REPORT 39

Elcowire Group’s profit/loss SEK thousand 2021 2020 Net sales 10 993 223 7 442 654 Other operating income 29 197 16 577 Change in work in progress, finished goods and work in progress on behalf of another party -58 703 -23 660 Raw materials and supplies -10 490 430 -6 982 228 Goods for resale -6 543 98 Other external costs -175 935 -178 651 Personnel costs -157 513 -190 519 Amortisation/depreciation of intangible and tangible assets -19 333 -32 304 Other operating expenses -22 295 -10 332 Operating profit/loss 91 668 41 635 Profit from sale of subsidiary 151 Financial income 581 24 Financial costs -12 321 -14 728 Net financial items -11 589 -14 704 Profit before tax 80 079 26 931 Tax -18 463 -17 734 NET PROFIT FOR THE YEAR 61 616 9 198 NET SALES 10 M993SEK 184EMPLOYEESEBITA99MSEK41%SOLIDITY REPORTFINANCIAL 40 FINANCIAL REPORT

Elcowire Group’s financial position SEK thousand 2021 2020 ASSETS Intangible assets 81 950 62 401 Tangible assets 69 914 65 416 Total fixed assets 151 564 127 817 Inventories 416 376 542 724 Tax assets 7 900 9 757 Account receivables - trade 531 638 544 427 Prepaid expences and accrued income 4 083 4 456 Other receivables 21 667 30 683 Cash and cash equivalents 232 5 604 Total current assets 981 899 1 137 651 TOTAL ASSETS 1 133 463 1 265 468 Shareholders’ equity Share capital 100 000 100 000 Retained profits including profit for the year 363 923 303 304 Total shareholders’ equity 463 923 403 304 Liabilities Long-term interest-bearing liabilities 29 818 Provisions for pensions 105 032 52 627 Other provisions 2 679 29 425 Deferred tax liabilities 19 666 25 849 Total long-term liabilities 127 377 137 719 Current interest-bearing liabilities 271 204 537 856 Accounts payable - trade 52 261 64 948 Tax liabilities 10 892 4 640 Other liabilities 173 143 78 911 Accrued expenses and deferred income 34 663 38 090 Total current liabilities 543 163 724 445 Total liabilities 669 540 862 164 TOTAL EQUITY AND LIABILITIES 1 133 463 1 265 468REPORTFINANCIAL FINANCIAL REPORT 41 The Annual Accounts and the Group report are based on Swedish Accounting standards.

REPORTFINANCIAL Elcowire Group’s cash flow SEK thousand 2021 2020 Operating activities Profit before tax 80 079 26 931 Adjustment for non-cash items -14 416 50 053 Paid tax -12 178 -10 933 Cash flow from operating activities before changes in working capital 53 485 66 051 Cash flow from changes in working capital Increase (-)/Decrease (+) in inventories 130 500 4 435 Increase(-)/Decrease(+) in current receivables 25 032 3 296 Increase(+)/Decrease(-) in current liabilities 103 895 -29 219 Cash flow from operating activities 312 912 46 563 Investing activities Acquisition of tangible assets -24 074 -3 835 Sale of tangible assets 34 054 336 Acquisition of intangible assets -31 588 -5 776 Acquisition of subsidiaries/operation, net cash effect -21 665 Change in financial assets - 935 Cash flow from investing activities -43 273 -8 340 Financing activities Increase (-)/Decrease (+) in current interest-bearing liabilities -200 998 -24 111 Borrowings -16 363 191 Change in group balance -57 780 -9 939 Cash flow from financing activities -275 141 -33 859 Cash flow for the year -5 502 4 364 Cash and cash equivalents at the beginning of the year 5 604 1 436 Exchange-rate difference in cash and cash equivalents 130 -196 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 232 5 604 42 FINANCIAL REPORT The Annual Accounts and the Group report are based on Swedish Accounting standards.

BENGT LILJEDAHL Chairman of the Board of Directors, Elcowire Group President, CEO and founder of Liljedahl Group Education MSc in Economics and Business Administration at the University of Gothenburg. Other active board membership Chairman of the Board of Liljedahl Group AB, Bufab Group, Dahrén Group AB. Board member of Finnvedens Lastvagnar AB, Hörle Wire Group AB, Pronect AB.

DIRECTORSBOARD OF

SVANTE NILSSON Board member of Elcowire Group Consultant and Board Director Education MSc in Industrial and Management Engineering. Other active board membership GISAB Gällivare Industriservice AB.

FINANCIAL REPORT 43

TORBJÖRN PERSSON Board member of Elcowire Group CFO of Liljedahl Group Education Degree of Master of Science in Business and Economics and Executive MBA from School of Business, Economics and Law at the University of Gothenburg. Other active board membership Chairman of the Board of Liljedahl Group Fastighets AB. Board member of Hörle Wire Group AB and Dahrén Group AB.

DAN BROSTRÖM Board member of Elcowire Group CEO Koncentra Verkstads AB Education MSc in Mechanical Engineering, Chalmers University of Technology, Gothenburg. Other active board membership Chair: JTK Power Oy, Koncentra Pistons Oy, Aiab Energy, Malmstens Verkstads AB, Finmec Oy, Koncentra Invest, Koncentra Fastighets AB. Director: Oxymetal SAS, Koncentra Verkstads AB.

FREDRIK LILJEDAHL Board member of Elcowire Group Deputy CEO of Liljedahl Group Education MSc in Mechanical Engineering, Lund University. BSc in Business Administration and Economics, Lund University. Other active board membership Chairman of the Board of Pronect AB. Board member of Liljedahl Group AB, Hörle Wire Group AB, Dahrén Group AB, Liljedahl Group Fastighets AB. Nominating committee of Bufab Group.

Elcowire Group AB Box SE-25191409 Helsingborg Tel +46 (0)42 19 53 00 Visiting address: Elektrogatan 20 Helsingborg elcowire.com SOMETIMES INVISIBLE, YET ALWAYS PRESENT

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