KH Group Plc Stock Exchange Release 28 November 2025 at 3:10 pm EET KH Group’s financial reporting and Annual General Meeting in 2026 KH Group Plc will publish financial reports in 2026 as follows: Financial Statements Release for 2025 on Friday, 20 March 2026 Annual Report for 2025 on week 13 Interim Report for January-March 2026 on Tuesday, 5 May 2026 Half-Year Report for January-June 2026 on Friday, 14 August 2026Interim Report for January-September 2026 on Friday, 30 October 2026 All financial reports ...

Core Viewpoint - KH Group Plc has successfully sold its 58.3% stake in Indoor Group, achieving its strategic goal to exit this investment in 2025, while also establishing financing arrangements related to the sale [1][2][5]. Group 1: Transaction Details - The transaction involved a nominal purchase price for the shares sold to a company controlled by Indoor Group's CEO, Kati Kivimäki [1][2]. - Indoor Group has been valued at an enterprise value of EUR 26 million, factoring in its interest-bearing net debt, excluding lease liabilities [2]. - KH Group repaid EUR 2.0 million of Indoor Group's debt to the financing bank and forgave receivables totaling EUR 3.5 million, which included a prior write-down of EUR 2.4 million [2]. Group 2: Financial Impact - KH Group will incur a total loss of EUR 3.3 million in its financial results for 2025 after accounting for transaction-related costs [4]. - The transaction does not affect KH Group's profit guidance for 2025 regarding its continuing operations [4]. Group 3: Strategic Implications - The sale allows KH Group to focus on its core businesses, specifically in earth-moving machinery and rescue vehicles, thereby opening new opportunities for development [5]. - The company's negotiating position for future financing has significantly improved, enabling better resource allocation towards core business development [6]. - Indoor Group's operational continuity is expected to be supported by its new ownership structure, with the CEO being a significant stakeholder [6].

Core Insights - KH Group's net sales increased in the first three quarters of 2025, but operating profit decreased year-on-year [4][8] - The company is focusing on long-term financing and the sale process of Indoor Group, while revising its strategy regarding Nordic Rescue Group [3][12] Financial Performance - For the July–September 2025 period, net sales from continuing operations were EUR 45.3 million, up from EUR 39.7 million, while comparable operating profit decreased to EUR 1.2 million from EUR 1.4 million [8] - For the January–September 2025 period, net sales reached EUR 141.3 million, an increase from EUR 132.3 million, with comparable operating profit declining to EUR 2.2 million from EUR 3.8 million [8] - The updated guidance for 2025 estimates net sales of EUR 190–200 million and comparable operating profit of EUR 5–6 million [4][14] Business Segments - KH-Koneet's net sales increased, but operating profit decreased, with growth in the machine dealership and rental business in Finland, while Sweden's machine rental business performed well [4] - Nordic Rescue Group experienced an increase in both net sales and operating profit in the third quarter, with a favorable order book outlook for 2026 and 2027 [5] Strategic Developments - The company has decided to no longer actively seek a new owner for Nordic Rescue Group, focusing instead on its development within the Group structure [3][12] - The ongoing sale process for Indoor Group is expected to be completed by the end of 2025, with a financial advisor engaged to explore options [7][12] Leadership Changes - A new CEO for KH-Koneet is being recruited following the decision of the long-standing CEO, Teppo Sakari, to step down in the first half of 2026 [6]

Group 1 - The Shareholders' Nomination Board of KH Group Plc has been appointed according to the Charter approved by the Annual General Meeting on 11 May 2022 [1][2] - The Nomination Board consists of three representatives from the largest shareholders and the Chairman of the Board of Directors [1][2] - Simon Hallqvist has been elected as the Chairman of the Nomination Board during its organizing meeting on 8 October 2025 [1][3] Group 2 - The primary role of the Nomination Board is to prepare and present proposals regarding the composition and remuneration of the Board of Directors for the Annual General Meeting [2] - Proposals must be delivered to the Company's Board of Directors by the last day of January preceding the Annual General Meeting [2] - KH Group Plc operates in various sectors including construction equipment, rescue vehicles, and interior decoration retail [2]

Core Viewpoint - KH Group is undergoing change negotiations in its Indoor Group division to enhance profitability, with a focus on restructuring and management model renewal [1][2]. Group 1: Change Negotiations - The change negotiations initiated on May 19, 2025, involved 83 employees, with an initial estimate of up to 30 positions potentially being terminated [1]. - The outcome of the negotiations will result in the termination of up to 21 employment relationships and temporary layoffs by the end of May 2026 [2]. Group 2: Profitability Improvement Measures - The negotiations aim to improve profitability by approximately EUR 2 million through management model renewal and function reorganization [2]. - These measures are part of a broader operational model reform expected to enhance Indoor Group's annual operating profit by at least EUR 10 million by the end of 2026 [2]. Group 3: Company Overview - KH Group Plc operates in various sectors, including construction and earth-moving equipment, rescue vehicle manufacturing, and furniture retail [3]. - The company's strategy focuses on creating an industrial group centered around its KH-Koneet business [3].

Core Points - KH Group Plc's Board of Directors has established a new performance share plan for key employees of KH-Koneet, replacing the previous plan announced on May 31, 2024, with the goal of aligning shareholder and employee objectives to enhance long-term company value [1] - The performance share plan will cover a two-year performance period from 2025 to 2026, allowing key employees to earn shares based on their performance [2] - Rewards from the plan will be distributed within five months after the performance period ends, consisting of both KH Group shares and cash to cover taxes and social security contributions [3] - The performance criteria for the plan are based on KH-Koneet's EBIT and Return on Invested Capital for the year 2026, targeting approximately 20 key employees, including management members, with a maximum total reward value of approximately 1,094,000 shares [4] - Management members are required to hold 50% of the reward shares until their shareholding equals 50% of their annual base salary from the previous year, while the CEO must hold 50% until their shareholding equals their annual base salary [5] Company Overview - KH Group Plc operates as a Nordic conglomerate in various business areas, including construction and earth-moving equipment, rescue vehicle manufacturing, and furniture retailing, with a strategic objective to create an industrial group centered around KH-Koneet [6]