Arctic Falls (ARFA) investor relations material

Executive summary

• Q1 FY2026/27 revenue fell 6.7% YoY to SEK 29.8m; operating margin held at 38.4% vs. 38.3%, while net income was SEK 7.8m.

• A 20-year Volvo Cars agreement adds contracted annual revenue of SEK 17m, indexed annually, plus potential service revenue; the facility is planned to open in late 2028.

• Contracted-customer access revenue grew 11.3% YoY, while total contracted-customer revenue declined 5.5% on lower service sales.

Financial highlights

• Revenue was SEK 29.785m, down 6.7% YoY; operating income was SEK 11.440m, down 6.5%, and net income was SEK 7.807m, down 12.0%.

• EBITDA was SEK 16.250m, down 4.4% YoY; EBITDA margin rose to 54.6% from 53.2%.

• Operating cash flow increased 13.0% YoY to SEK 24.148m; cash at quarter-end was SEK 41.828m vs. SEK 36.432m.

• Lower personnel costs and SEK 0.904m more other operating income from machinery disposals partly offset the revenue decline; no comparability items were recorded in the quarter.

Outlook and guidance

• The Volvo Cars facility is expected to generate SEK 17m in annual revenue, subject to annual indexation, with additional service revenue potential; opening is planned for late 2028.

• Investment for the new facility is estimated at SEK 110–130m, staged through commissioning; project planning and permitting are progressing as planned.

• Priorities include increasing utilization, developing services for contracted customers and adding facilities backed by long-term customer agreements; management entered the intensive winter testing season.

• Financial targets include annual growth of 10–20%, medium-term EBIT margin of ~40%, net debt/EBITDA no higher than 3x over time, and dividends of 30–50% of net income.