Company PresentationMay 2020

Introduction to Ferronordic

2

Employees

Revenue (SEKm)1)

Outlets

2010 (start)

~160

1,184

6

Q1 2020

1,416

4,142

101

DevelopmentOverview

New machine revenue per customer type (2019)

Introduction to Ferronordic

Mining23%

General Construction and

Other28%

Forestry14%

Road Construction

18%

Quarries & Aggregates

12%

Oil & Gas5%

Russia/CIS Dealer of Volvo Construction Equipment Dealer of Terex, Dressta, Rottne and Mecalac Aftermarket dealer for Volvo Trucks and Renault

Trucks in parts of Russia Dealer for Volvo Penta in parts of Russia Sales of new and used construction equipment Service and technical support Sales of used trucks Growing contracting services business CIS markets currently include Kazakhstan2)

Germany Dealer of Volvo Trucks and Renault Trucks in parts

of Germany Sales of new and used trucks Service and technical support

Group Founded in 2010 Listed on Nasdaq Stockholm since 2017

1) Annualized.2) In Kazakhstan Ferronordic is a dealer of Volvo CE and Mecalac.

Strategic objectives

3

Value pyramid

Huge market at the edge of recovery

Population: ~144 million1)

Area: 16.4 million sq. km1)

Rich in oil and minerals World’s largest forest land A significant portion of the Federal Government income relates

to oil and gas Strong balance sheet and approx. USD 563 billion2) in

international currency reserves plus USD 120 billion in gold2)

12.5% government debt/GDP ratio (nominal 2019)

4

Russia at a glance Russia’s GDP development5)

Gold reserves (% of total)4)Coal reserves (% of total)3)Natural gas production (% of total)3)Oil production (% of total)3)

Sources: 1) World Bank 2) Russian Central Bank 3) BP Statistical Review of World Energy, June 2019 4) U.S. Geological Survey, Mineral Commodity Summaries, February 2020 5) Including the World Bank, IMF and OECD.

16,2%

13,0%12,1%

5,5% 5,0% 4,9% 4,2% 4,0%2,0%

USA

Saud

i Ara

bia

Russ

ia

Cana

da Iran

Iraq

UAE

Chin

a

Kaza

khst

an

21,5%

17,3%

6,2%4,8% 4,5% 4,2% 3,4% 3,1%

0,6%

USA

Russ

ia

Iran

Cana

da

Qat

ar

Chin

a

Aust

ralia

Nor

way

Kaza

khst

an

23,7%

15,2% 14,0% 13,2%

9,6%

3,5% 3,4% 3,3% 2,4%

USA

Russ

ia

Aust

ralia

Chin

a

Indi

a

Indo

nesia

Ger

man

y

Ukr

aine

Kaza

khst

an

20,0%

10,6%

6,4% 6,0% 5,2% 4,8% 4,2% 4,0%2,0%

Aust

ralia

Russ

ia

Sout

hAf

rica

USA

Indo

nesia

Braz

il

Peru

Chin

a

Kaza

khst

an

3,4%

1,3%0,6%

-3,8%

-0,7%

1,5% 2,3%1,3%

-5,5%

3,5%

2012 2013 2014 2015 2016 2017 2018 2019 2020e 2021e

Vast market with long term potential

Significant need to improve infrastructure

5

Road density in Russia and Kazakhstan is low Rail density is low tooRail density (km railway per 1,000 sq. km of land area)2)

Construction equipment market is expected to capitalize on the long-term growth in Russia and Kazakhstan

An important driver will be the need to improve aging infrastructure, the bulk of which was built in the Soviet era and needs to be upgraded

Russia is ranked 99 out of 141 countries in terms of road quality2)

Kazakhstan is ranked 93 out of 141 in terms of road quality2)

Signs that the government intends to create economic growth by increased infrastructure spending

Sources: 1) World Bank 2) Global Competitiveness Report 2019 3) Global Infrastructure Outlook, World Bank, Company estimates.

4 6 14 2343

67

129 132

172 180192

Kaza

khst

an

Russ

ia

Cana

da

Finl

and

Chin

a

USA

Swed

en

Pola

nd UK

Ger

man

y

Fran

ce

5 5 6 717 20 24

5361

75

96

122

Russ

ia

Cana

da

Kaza

khst

an

Chin

a

USA

Finl

and

Swed

en

Fran

ce

Pola

nd

Slov

akia

Ger

man

y

Czec

h Re

p.

Significant need to improve infrastructure

0%

1%

2%

3%

4%

5%

0

10

20

30

40

50

60

70

2015 2016 2017 2018 2019e 2020e 2021e 2022e

USD

b

Prevailing investment level Investment gapPrevailing investment as % of GDP Total investment needed as % of GDP

High need for increased infrastructure investmentInfrastructure spending levels in relation to GDP3)

Road density (km road per 100 sq. km land area)1)

Strategic objectives

6

National Projects

National Projects

[USD 400 bln]

Demography

[USD 49 bln]

Roads

[USD 75 bln]

Infrastructure

[USD 100 bln]Housing,

trade, digital economy and

others

[USD 90 bln]

Healthcare

[USD 27 bln]

Environment

[USD 64 bln]

Total budget of USD 400 bln

Designed to transform the economy and promote economic growth

Remain the government’s priority despite the uncertainty caused by the outbreak of COVID-19

Almost half of the budget earmarked for infrastructure, including the road network

Planned investment into roads and infrastructure amounts to approx. 10% of GDP

Aim to transform regional roads to improve links between Russian cities

The railway program includes high-speed rail and increase of the freight capacity between key logistical hubs

Waterways development plan aims at growing sea port capacity and developing the Northeast Passage

63%20%

14%

2%

USD 175 bln

Roads Railways Waterways Airports

Source: Russian Government Information Bulletin, February 2019.

Pent-up demand

7

Import of construction equipment to Russia (units)

Import of construction equipment to Russia (units)

Source: Russian import statistics (until February 2020) compiled by Volvo CE.Note: Excluding Chinese brands, bulldozers, rigid dump trucks and forestry machines.

Young market – sales of high-quality construction equipment only took off 2006/2007

Mainly local machines of lower quality

Pent-up demand

Import of high-quality brands gains momentum

1 1311 685

2 655

4 436

13 525

17 489

1 649

8 004

18 627

21 009 20 573

13 568

3 5734 354

8 426

10 31011 766 11 978

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM

Market starts to recoverafter 2014-2015 economic

downturn

Pent-up demand

8

Heavy truck registrations in Germany (units)

Source: Germany registrations data compiled by Volvo Trucks (until March 2020). Federal Statistical Office Germany (Destatis).* Truck toll mileage index is a fixed base index that traces the development of the mileage of heavy trucks (with four or more axles) on German federal motorways and is calculated from digital process data from the truck toll collection system.

Germany - Europe’s largest truck market

67 797

40 322

48 827

60 21855 167 55 215

58 57461 940

65 280 66 441 68 450 70 26465 395

-8,0

-6,0

-4,0

-2,0

0,0

2,0

4,0

6,0

8,0

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM

Heavy truck registrations Average truck toll mileage index*

Strategic objectives

9

Leadership within the market for construction equipment and trucks

Geographic expansion

Expansion into related business

areas

Further development of contracting

services

Aftermarket absorption rate of at least 1.0 x

Strategic objectives

Strategic objectives

10

Strategic cornerstones

OPERATIONAL EXCELLENCE

□ Strong teams and high employee engagement

□ Safety and sustainability

□ Continuous improvement of practices and processes

□ Business driven digitalisation solutions

□ Close cooperation with manufacturers

GREAT TEAM

CUSTOMER ORIENTATION

□ Customer centricity□ Leading service and product availability□ Tailored customer solutions (including contracting

services)□ Financial services offerings□ Developed trade-in system□ Fleet and residual value management

SUPERIOR INFRASTRUCTURE

□ High density network – many points of presence

□ Mobile workshops and service vans/trucks

□ Well equipped, purpose-build facilities in select locations

□ Infrastructure to be used for all brands and business areas

BUILD ON STRONG BRAND – VOLVO

□ World leading manufacturer of trucks and construction equipment

□ Leading brand position in Russia

□ Development through additional strong brands

Strategic objectives

11

UN Sustainable Development Goals

Zero injury objective 6,810 hours invested in

Health & Safety trainings

57,000 hours of training and development

Equal opportunities employer: proportion of women in management positions increased from 13% to 17%

Contributing to economic growth and social development

Contributing to employment in remote regions

Providing service and equipment for building critical infrastructure

Minimum emissions and waste

High-quality, long-life, fuel-efficient machines

Maximizing uptime for efficient production

Recycling (Component rebuild center)

Customer support, training and contracting services for most efficient use

Anti-corruption program consisting of policies, procedures, trainings and zero tolerance policy

Code of Conduct Swedish Corporate Governance Code

Strategic development

12

2010-2013: Phase I – establishing platform

2014-2016: Phase II – streamlining to handle market decline

2017 and onwards: Phase III – leveraging market recovery and company maturity

1 1841)

2 421 2 403 2 483

3.9%2.8%

3.6%

2010 2011 2012 2013

Revenue (SEKm) Operating margin

12 outlets326 FTEs

75 outlets731 FTEs

Processes and procedures established

Establishment of countrywide platform

Building market awareness and market share

2 335

1 4691 658

4.4%5.9%

7.9%

2014 2015 2016

Revenue (SEKm) Operating margin

75 outlets767 FTEs

73 outlets 782 FTEs

Increased aftermarket focus

Reduction of unprofitable outlets

NWC efficiency focus

Adding brands and services

Digitalisation focus

Leveraging existing organization

Growing contracting services

High market potential

Continued aftermarket focus

Expansion of geography and customer offering

1) Annualized 2) 2011-2016 refer to adjusted EBIT, i.e. operating profit excluding amortization of transaction-related intangible assets and write-downs of non-current assets in Q4 2016.

Strategic development

74 outlets 847 FTEs

79 outlets 1,032 FTEs

92 outlets 1,239 FTEs

2) 2)

101 outlets 1,416 FTEs

2 567

3 241

3 7474 142

7.3%8.4%

9.5%8.5%

2017 2018 2019 LTM

Revenue (SEKm) Operating margin

Product offering

13

Bran

dEx

ampl

e pr

oduc

tPr

oduc

tYe

arAr

ea

Product offering

~56% of Q1 2020 revenue ~10% of Q1 2020 revenue

Volvo CE

Full VCE range

2010 (Russia)2019 (Kazakhstan)

All of Russia &Kazakhstan

Dressta

Bulldozers and pipe layers

2016

All of Russia

Rottne

Forwarders and harvesters

2016

All of Russia

Gensets

Own labelled diesel generators

(gensets)

2014

All of Russia

Mecalac

Backhoe loaders

2017 (Russia)2019 (Kazakhstan)

All of Russia &Kazakhstan

Volvo & Renault Trucks

Aftermarket

2012

11 locations in Russia

Volvo & Renault Trucks

Full Volvo & Renault Trucks

range

2020

~20% of German market for heavy

trucks

~25% of Q1 2020 revenue

Nationwide coverage

14

(90) Ferronordic outlets in Russia and Kazakhstan as of March, 2020

Russia and Kazakhstan coverage

Khabarovsk

Krasnoyarsk

Ekaterinburg

St .Petersburg

Moscow

Krasnodar

Murmansk

PetrozavodskArkhangelsk

N.Novgorod

Artyom

Kazan

Vologda

Voronezh

Chelyabinsk

Tver

Perm

Norilsk

Novosibirsk

SurgutRostov-on-Don Sovetskiy

Velsk

Tyumen

Tula

Yaroslavl

RyazanBelgorod

Smolensk

SyktyvkarKoryazhma

ArmavirUfa

Bratsk

Neryungri

Noviy Urengoy

Kaluga

Yakutsk

Blagoveshchensk

Varna

Cherepovets

Penza

Belovo

VorkutaMagadan

Chita

Elga

Mar-Kuel

Labytnangi

Makhachkala Orenburg

Kyumba

Karpogory

Ust-Omchug

Yagodnoe

Velikiy Novgorod

VysochaishyKemerovo

Irkutsk

Saransk

Kirov

Naberezhnye Chelny

Tomsk

Cheboksary

Ust-Ilimsk

Abakan

Samara

Kirovsk

Egvekinot

Udachniy

Aldan

Almaty

Nevinnomyssk

Yuzhno-SakhalinskKaraganda

Sharya

Aktobe

Atyrau

Berezovskiy

Novotroitsk

Nationwide coverage

15

(11) Ferronordic outlets in Germany as of March, 2020

Germany coverage

• Ferronordic expanded to become dealer for Volvo and Renault Trucks in Germany in January 2020

• Germany is Europe’s largest trucks market with 70,000 registrations in 2019

• Ferronordic’s sales area covers approx. 20% of the German market for heavy trucks

• The area includes some of the busiest and most developed parts of Germany, like Hannover and Frankfurt Rhine-Main, the second largest metropolitan region in the country

• It also includes a large part of Eastern Germany with fast growing cities, like Leipzig and Dresden

Moving towards further customer integration

16

Com

plex

ity o

f cus

tom

er d

eman

d

Ferronordic offering

Aftermarket focus

17

Offering

• Spare parts delivery• Telematics - through Care-Track; fuel efficiency control,

operator efficiency, fleet management• Operator training• Preventive maintenance service• Planned and unplanned repair• Overhaul • Providing new life to older machines• Diagnostics of machines• Remanufacturing of vital parts

Share of sales (Q1 2020) - Russia/CIS

Machine sales61%

Aftermarket 26%

Contracting services12%

Other 1%

Aftermarket sales (SEKm)

Aftermarket focus

Aftermarket sales

• Proactive customer coverage based on real-time data from the existing machine population

• Proprietary system transforms machine telematicsignals (e.g. VCE’s CareTrack) into sales leads on the mobile devices of sales and service staff

• Ferronordic’s presence in all Russian regions allows for fast delivery of parts and timely customer support

Share of sales (Q1 2020) - Germany

Truck sales69%

Aftermarket 25%

Other 6%

0

100

200

300

400

500

600

700

800

900

1 000

2015 2016 2017 2018 2019 Q1 20Russia/CIS Germany

Focus on connectivity and digitalization to create additional sales

18

We are in the forefront of using a system that utilizes telematics systems to maximize sales and increase customer satisfaction and fleet efficiency

Focus on connectivity and digitalisation to grow sales

Contracting services

19

Integrating with our customers

• Part of strategy of becoming increasingly integrated in the business of our customers

• In addition to supplying and maintaining machines, we provide customers with operators to carry out specific works

• Current projects cover excavation and transportation of earth and rock for mining customers

• Payment is based on volume of earth and rock transported

• Common in other parts of the world but relatively undeveloped in our markets. We believe demand may grow

• Machines used by Contracting services are on Ferronordic’s balance sheet (PP&E)

• Contracting service projects should be ROIC accretive to Ferronordic

Ope

rato

rsM

achi

neSe

rvic

ePa

ymen

tsPa

rts

Traditional methodOutsourcing method:Contracting services

The customer

Cost of machine, parts and service

Provided by:

Volume based (per tonne, cubic meter, etc.)

or the customer

or the customer

Provided by:

Contracting services

Focus on connectivity and digitalization to create additional sales

20

Contracting services - case study

Client: GV Gold, top 10 gold mining company in Russia

Location: Irkutsk region, Golets Vysochaishy,Vysochaishy mine

Project staff: 143 people (as at end of March 2020)

Fleet size: 35 units (28 haulers, 1 grader, 6 excavators)

Component rebuild center

21

• Opened in Ekaterinburg in Q4 2019 • Rebuild of engines and gearboxes for Volvo

CE and Volvo and Renault Trucks• Chop-off and rebuild of machines planned• Part of the center’s capacity is expected to be

used by Ferronordic’s contracting services business

• Components to be resold to customers with a warranty from Ferronordic or installed in used machines in “Volvo Certified Rebuild” program

• Some negative impact on profitability and cash flows expected in 2019 and 2020

• Positive contribution from 2021• Expected to contribute 3-5% of total sales

over time• First components produced and sold in Q1

2020

Volvo and Renault Trucks Russia

22

• Authorised aftermarket dealer for Volvo and Renault Trucks in parts of Russia

Currently operating in 11 locations

Platform capacity utilization

Cross-selling and customer service

• Used trucks business launched in 2019

Purchasing, restoring and selling used trucks

Mainly Volvo and Renault Trucks

Small scale but with potential to grow

24 units sold in 2019

Potential synergies with Germany

Volvo and Renault Trucks Germany

23

• Authorised dealer for Volvo Trucks and Renault Trucks in parts of Germany

• Ferronordic services and sells Volvo and Renault trucks, trades and restores used trucks and manages a trucks rental business

• Ferronordic will invest to grow and improve network in area

• Plan to apply Ferronordic’s business model to grow revenue and profitability

• Opportunities to grow Volvo and Renault Trucks market shares and increase share of aftermarket sales and improve profitability

• 248 employees in Ferronordic Germany; mostly sales representatives and mechanics

Strong development despite low level market

241) 2011-2016 refer to adjusted EBIT, i.e. operating profit excluding (i) amortization of transaction-related intangible assets and (ii) write-downs of non-current assets in Q4 2016.

1)

Russia/CIS: Strong resilience and growth in market with upside

113% 110%

73%

19% 23%

45%55%

63% 64%100%

71%95%

109%92%

140%

199%

291%

381% 385%

99% 103% 96% 61%69%

106%

134%

155% 160%

0%

50%

100%

150%

200%

250%

300%

350%

400%

2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM

Inde

x =

100

in 2

011

Market (units) Operating profit (SEK) Revenue (SEK)

Revenue development

25

Revenue Operating profit and operating margin1)

1) 2015-2016 refer to adjusted EBIT, i.e. operating profit excluding amortization of transaction-related intangible assets and write-downs of non-current assets in Q4 2016.

Development of revenue and operating profit

87

132

187

274

358 353

5,9%

7,9%

7,3%

8,4%

9,5%8,5%

0%

5%

10%

15%

20%

0

50

100

150

200

250

300

350

400

2015 2016 2017 2018 2019 LTM

SEKm

1 4691 658

2 567

3 241

3 747

3 867

275

0

750

1 500

2 250

3 000

3 750

4 500

2015 2016 2017 2018 2019 LTM

SEKm

Russia/CIS Germany

4 142

Efficient capital usage

26

Working capital development Net debt/(cash) development

Capital expenditure development Comments• Focus on working capital efficiency and return on invested capital• Asset light core business. Contracting services more capital intense• Increased working capital in 2019 mainly due to inventory build-up,

partly due to transition to take over importation from Volvo• Capex increase in 2019 mainly driven by investment in machines for

contracting services and expansion to Germany in Q4 2019• Working capital and net debt decline in Q1 2020 despite expansion in

Germany• IFRS 16 lease liabilities of SEK 98m as at Q1 2020• Net debt/EBITDA at 1.0 x as at Q1 2020

Cash flow and capital allocation

283

655 675734

660

8%

18% 18%20%

13%

0%

5%

10%

15%

20%

25%

0100200300400500600700800

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

SEKm

NWC NWC as % of LTM revenue*

-59

446 411

593531

-200

0

200

400

600

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

SEKm

47

8196

187173

1%2% 3%

5%4%

0%

3%

5%

8%

10%

0255075

100125150175200

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

SEKm

LTM capex LTM capex as % of LTM revenue*

* LTM revenue for Germany was annualized and calculated as four times the first quarter revenue.

Return on capital employed

271) Operating profit plus financial income (LTM) in relation to capital employed (equity and interest-bearing liabilities) (average LTM)Note: 2014-2016 refer to adjusted EBIT, i.e. operating profit excluding amortization of transaction-related intangible assets and write-downs of non-current assets in Q4 2016.

Return on capital employed

8%

13%

18%

23%

28%

33%

38%

43%

48%

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

Return on capital employed

• Decrease in 2019 related to working capital build-up and IFRS 16

• German expansion added assets at end of 2019

• Q1 2020 includes negative contribution from Germany

1)

Growth in Russia/CISStart of operations in Germany

Revenue and operating profit growth in Russia/CIS

Negative earnings impact from Germany in line with our expectations

Strong cash flows from operating activities

Disruption from COVID-19 seen in March expected to increase going forward

Measures taken to reduce costs and strengthen liquidity

28

55%revenue increase

9%operating profit

decline

4.6%operating margin

-56%EPS decrease

Q1 2020 Income statement

29

SEK MMQ1 2019 Group

Q1 2020 Russia /

CISQ1 2020 Germany

Q1 2020 Group

% change Group

New units sold 196 229 172 401 105%

Revenue 723 843 275 1,118 55%

Gross Profit 146 156 27 183 25%

% Margin 20.2% 18.5% 9.7% 16.3% -3.9pp

Operating profit 56 60 -10 51 -9%

% Margin 7.7% 7.2% -3.5% 4.6% -3.2pp

Result 46 20 -56%

EPS 3.19 1.39 -56%

EBITDA 82 100 -1 99 21%

Ferronordic to report Russia/CIS and German operating segments and disaggregate contracting services revenue

Total revenue of SEK 1,118m

75% Russia/CIS and 25% Germany

63% Equipment and trucks, 26% aftermarket and 9% contracting services

Gross margin declined 3.9pp to 16.3% on lower margins in equipment sales in Russia/CIS, lower share of aftermarket and consolidation of Germany

SG&A expenses as share of revenue was 11.5% in Q1 2020 vs.11.9% in Q1 2019

Operating margin declined to 4.6% and operating profit declined 9% to SEK 51m on negative contribution from Germany

Result lower on higher net finance costs and forex losses in Russia/CIS

Revenue and margin development

30

LTM revenue in Russia/CIS reached highest ever point of SEK 3.9b

Revenue from German operations contributed incremental SEK 275m

Q1 2020 consolidated gross margin declined by 3.9pp YoY to 16.3%

Q1 2020 consolidated operating margin1)

decreased by 3.2pp to 4.6%, mainly due to negative margin contribution from Germany

1) 2016 refer to adjusted EBIT, i.e. operating profit excluding amortization of transaction-related intangible assets and write-downs of non-current assets in Q4 2016.

0

1 000

2 000

3 000

4 000

5 000

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

Revenue Russia/CIS (Rolling 12 months)Revenue Consolidated (Rolling 12 months)

0%

5%

10%

15%

20%

25%

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

Gross margin Russia/CIS Operating margin Russia/CISGross margin Group Operating margin Group

Margin trends

Revenue trends

Q1 2020 Cash flows

31

SEK MMQ1 2019 Group

Q1 2020 Russia / CIS

Q1 2020 Germany

Q1 2020 Group

Cash flows from:

Cash flows from operating activities before changes in working capital

87 102 (2) 101

Change in working capital (197) 14 23 37

Interest & Income tax paid (5) (35) (4) (39)

Net cash from operating activities (116) 82 18 99

Investing activities (19) (3) (2) (5)

Cash flows before Financing Activities (134) 78 16 95

Financing activities 196 (66) 77 12

Cash Flow (before FX fluctuations) 61 13 94 106

Net cash from operating activities increased

Operating profit growth and decline in working capital in Russia/CIS

Negative operating result and higher working capital in Germany

Higher tax and interest payments negatively impacted cash flows

Capex decreased

Cash flows from financing activities reflect net debt repayment in Russia/CIS and net draw in Germany

Q1 2020 Balance sheet

32

SEK MM

31 March 2019

31 December

2019

31March 2020

Property, plant & equipment 371 700 606

Cash & cash equivalent 402 519 639

Debt 215 845 935

Lease liabilities 127 268 234

Net Debt / (Cash) -59 593 531

Working capital 283 734 660

% of Revenue 8% 20% 13%

Shareholder equity 758 890 783

Total Assets 2,494 2,978 3,211

Equity / Assets 30% 30% 24%

PP&E decreased QoQ on depreciation and translation

Additions were mainly right-to-use assets in Germany in the amount of SEK 25m

Net debt in Russia/CIS decreased from SEK 397m to SEK 193m QoQ on operating cash flows and lower working capital

Working capital decreased from SEK 707m to SEK 525m QoQ on FX translation and higher payables

Net debt in Germany increased from SEK 196m to SEK 340m QoQ mainly on higher working capital

Working capital increased from SEK 27m to SEK 135m QoQ on higher inventories and receivables

Working capital at 13% of LTM revenue (annualized for Germany)

Net debt/EBITDA decreased to 1.0 x

Financial objectives and dividend policy

33

Dividend Policy

Financial objectives and dividend policy

• Ambition to distribute at least 25% of the result to shareholders• Board takes several factors into consideration when proposing

the dividend level, including expansion opportunities, financial position and investment needs

KPI Objective Q1 2020 LTM

Revenue Triple 2016 revenue in Russia/CIS by 2021

2.3 x 2016 revenue

Operating margin 6-8% 8.5%

Net Debt / EBITDA 0-2 x 1.0 x

34

OUTLOOK – CEO COMMENT

“The outbreak and the measures to contain the spread of COVID-19 have caused extraordinary uncertainty across our markets. For the rest of 2020, we are likely to face

various degrees of disruption in supply, demand and customer interfacing. To forecast the near-term development of our markets in this business environment is not meaningful. In

response to COVID-19, we are taking measures to maintain the highest level of service to our customers, protect our employees, strengthen liquidity and cut costs. We are confident that our

business model, which is built around a great team and a robust aftermarket business, will once again prove itself resilient. In a longer perspective, we remain positive as we believe that

the underlying fundamentals and business opportunities in our markets are strong”

Outlook

Ferronordic in the capital market

35

2017Volvo CE Russian distribution business was taken over

2010 2011 20133-year SEK 400m bond issued and listed on Nasdaq Stockholm

SEK 500m preference shares issued and listed on Nasdaq First North Premier

Ordinary shares listed on Nasdaq Stockholm and SEK 200m raised in IPO

2017

Ferronordic statistics• Shares outstanding: 14,532,434 • Listing: Nasdaq Stockholm • Market cap. as at 31 March 2020: SEK 1,224m • Net debt as at 31 March 2020: SEK 531m • Enterprise value: SEK 1,754m• Estimated effective free float: 60%• Dividend policy: 25% subject to capital allocation

alternatives

Analyst coverage

Bank Analyst Telephone

Carnegie Kenneth Toll +46 734 17 89 11kentol@carnegie.se

ABGSC Karl Bokvist +46 708 44 86 33karl.bokvist@abgsc.se

Nordea Carl Ragnerstam

Agnieszka Vilela

+46 101 562 817carl.ragnerstam@nordea.com+46 101 572 870agnieszka.vilela@nordea.com

Worksite Applications_2_Machine Performance 271114