Notes to the financial statements

1. ACCOUNTING PRINCIPLES

1.1. VALUATION PRINCIPLES

Fixed assets are stated at historical cost less accumulated straight-line depreciation. Current assets are stated at historical cost or at lower fair value. Foreign currency items are translated using the exchange rate at the balance sheet date. The consolidated financial statements are presented in thousand euros (EUR).

Forcit Defence International Ab’s and parent company’s operations include projects whose manufacturing time is long. Forcit Defence International Oy Ab applies the principles of partial revenue recognition in its project operations where the project’s manufacturing time spans several accounting periods and where the project’s amounts are significant with regards to turnover. The income is recognised in the profit and loss account according to the progress of the projects (percentage of completion). The long-term project’s recognition is determined on the basis of manufactured goods in relation to the total quantity of ordered goods for the project. The costs for the projects are based on the project accounting where each project has its own project cost calculation. The costs for the projects include variable expenses for procurement and manufacturing. The partial revenue recognition reflects the significant growth in the project business during the financial year and improves the comparability between financial years.

1.2. DEPRECIATION AND AMORTISATION

Depreciation is calculated from the historical cost, and is calculated on a straight-line basis over the estimated economic life in years. The basis of calculation are:

Buildings and constructions20-50
Machinery and equipment5-10
Other tangible assets10-20
Immaterial rights5-10
Other long-term expense items10
Consolidated goodwill5-10

1.3. CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements include the parent company Oy Forcit Ab and the subsidiary companies Forcit Sweden AB, Forcit Norway AS, Forcit International Oy Ab, Forcit Defence International Oy Ab, Forcit Pori Oy, Forcit Consulting Oy, Forcit Consulting AB, Forcit Consulting AS, O-Piblast S.A. and Forcit Ireland Ltd. The consolidated financial statements also include the associated company Vipnordic AB. Vipnordic AB’s financial statements are prepared per 31.08.2025. Forcit Consulting Oy acquired Bergwerk Oy in January 2024. Bergwerk Oy was merged with Forcit Consulting Oy on 31 August 2024. Bergwerk Oy’s results for the period 1.1. -31.8.2024 are included in consolidated result for the 2024 accounting period. The consolidated financial statement is prepared according to the acquisition method. All intercompany transactions, balances, gains and losses are eliminated as part of the consolidation process.

2. Profit and loss account
2.1. NET SALES PER BUSINESS SECTOR
Consolidated20252024
Explosives205 677234 934
Consulting15 18916 228
Revenue recognition276 71124 485
Total497 576275 647
Parent Company20252024
Explosives112 079142 301
Revenue recognition192 2388 649
Total304 317150 950
2.2. SALARIES FOR THE REPORTING PERIOD AND THE AVERAGE NUMBER OF PERSONNEL
Consolidated20252024
Boards of Directors and CEO´s1 6881 657
Other personnel46 86038 187
Total48 54839 843
Parent Company20252024
Board of Directors and CEO854803
Other personnel28 79921 803
Total29 65322 606
During the financial period the average number of personnel20252024
Consolidated718620
Parent Company429338
2.3. OTHER OPERATING INCOME
Consolidated20252024
Income from rents171181
Other items1 6701 477
Total1 8411 658
Parent Company20252024
Intercompany transactions6 0144 535
Income from rents171181
Other items1 165357
Total7 3515 073
2.4. AUDIT FEES
Consolidated20252024
Audit fees202174
Total202174
Parent Company20252024
Audit fees6667
Total6667
2.5. APPROPRIATIONS
Parent Company20252024
Group contribution80 94725 940
2.6. DIVIDEND INCOME FROM GROUP UNDERTAKINGS
Parent Company20252024
Dividend income from group undertakings2 6406 016
2.7. INCOME TAX
Consolidated20252024
Income tax on ordinary items31 5127 762
Change in deferred tax liability1 4411 883
Total32 9539 645
Parent Company20252024
Income tax on group contributions16 1895 188
Income tax on ordinary items13 4851 308
Total29 6746 496
3. BALANCE SHEET
3.1. INTANGIBLE AND TANGIBLE ASSETS
The notes include the purchase cost for the non-current assets that have not entirely been depreciated by plan. The group goodwill in the consolidated Financial Statements is depreciated over a period of 5–10 years from acquisition.
Consolidated20252024
Acquisition cost 1.1327 980179 894
Increases66 451148 346
Decreases-1 350-260
Acquisition cost 31.12393 081327 980
Accumulated depreciation 1.1-135 628-104 403
Depreciation for the reporting period-40 711-31 400
Accumulated depreciation on reductions187175
Accumulated depreciation 31.12-176 152-135 628
Increases437437
Book value on 31.12217 367192 789
Balance value of intangible and tangible assets44 08937 440
Parent Company20252024
Acquisition cost 1.1.241 839101 894
Increases53 243140 031
Decreases-148-85
Acquisition cost 31.12.294 934241 839
Accumulated depreciation 1.1.-80 788-55 068
Depreciation for the reporting period-34 803-25 720
Accumulated depreciation 31.12.-115 592-80 788
Increases437437
Book value on 31.12.179 780161 488
Balance value of intangible and tangible assets27 56721 070
3.2. INVESTMENTS, PARENT COMPANY
SharesGroup companiesOthers
Acquisition cost 1.1.28 993287
Increases2 2870
Decreases00
Acquisition cost 31.12.31 280287
3.3. STOCKS
Consolidated20252024
Raw materials and consumables27 50123 738
Finished products8 0084 481
Purchased products18 50613 435
Advances paid10 42912 559
Total64 44554 213
Parent Company20252024
Raw materials and consumables26 26822 433
Finished products6 5442 860
Purchased products10 7706 596
Advances paid10 42912 558
Total54 01144 446
3.4. CONSOLIDATED COMPANIES
Participation-%ConsolidatedParent Company
Forcit International Oy Ab100100
Forcit Defence International Oy Ab100100
Forcit Pori Oy *)100100
Forcit Sweden AB100100
Forcit Norway AS100100
Forcit Consulting Oy100100
Forcit Consulting AB100100
Forcit Consulting AS100100
Forcit Ireland Ltd100100
O-Pitblast S.A.5555
Vipnordic AB5050
*) The company is part of the group as of 30.4.2025
Forcit Consulting Oy bought the company Bergwerk Oy in January 2024. Bergwerk Oy was merged with Forcit Consulting Oy on 31.8.2024
3.5. CONSOLIDATED RECEIVABLES AND PAYABLES
Parent Company20252024
Long-term loan receivables117243
Trade receivables20 42012 705
Loan receivables7575
Other receivables*83 04432 776
Total receivables103 65645 798
Trade payables26652
Other debts*113 34249 432
Total payables113 60849 484
*Refers mainly to group cash pool arrangements
3.6. CHANGES IN EQUITY
Consolidated20252024
Share Capital 1.1.3 1493 149
Share Capital 31.12.3 1493 149
Reserve for invested unrestricted equity 1.1.1 0501 501
Increase of the reserve for invested unrestricted equity42591
Decrease of the reserve for invested unrestricted equity-502-541
Reserve for invested unrestricted equity 31.129731 050
Disposition fund 1.1.61 92350 236
Profit last year35 61920 534
Dividend for last year-35 945-7 041
Redemption of own shares0-1 433
Change in disposition fund1 402-372
Disposition fund 31.12.63 00061 923
Net profit for the period124 98235 619
Total equity192 104101 742
Parent Company20252024
Share Capital 1.1.3 1493 149
Share Capital 31.12.3 1493 149
Reserve for invested unrestricted equity 1.1.1 0501 501
Increase of the reserve for invested unrestricted equity42591
Decrease of the reserve for invested unrestricted equity-502-541
Reserve for invested unrestricted equity 31.12.9731 050
Disposition fund 1.1.52 18437 588
Profit last year32 20723 069
Dividend for last year-35 945-7 041
Redemption of own shares0-1 433
Disposition fund 31.12.48 44652 184
Net profit for the period120 46432 207
Total equity173 03288 590
Distributable free funds in total 31.12.169 88385 441
*) During the financial year 2024, the company issued 100 shares and redeemed 1,955 own shares.
During the financial year 2025, the company issued 306 shares and redeemed 1,655 own shares.
3.7. APPROPRIATIONS AND DEFERRED TAX LIABILITIES
Accumulated depreciation in excess on plan
Parent Company20252024
Intangible assets
Intangible rights1 1841 046
Tangible assets
Buildings and constructions5 8845 275
Machinery and equipment16 67310 630
Other tangible assets-47-29
Total23 69416 922
Deferred tax liabilityConsolidated
2025		Consolidated
2024
The depreciation difference and the untaxed reserves are reclassified as deferred tax liability in the consolidated financial statements6 6625 221
20252024
The remaining of the depreciation difference and the untaxed reserves constitutes unrestricted equity8 76910 210
3.8. PROVISION FOR LONG-TERM PROJECTS
Consolidated20252024
Warranty provision 1.1.808143
Change3 207664
Warranty provision 31.12.4 015808
Parent Company20252024
Warranty provision 1.1.00
Change5920
Warranty provision 31.12.5920
3.9. CURRENT LIABILITIES
The balance sheet item “Loans from financial institutions” also includes use of current account with overdraft facility.20252024
Consolidated1 1631 885
Parent Company1 1631 885
3.10. ACCRUED EXPENCES AND ADVANCES RECEIVED
Assets – Consolidated20252024
Accrued invoices1 9661 185
Tax refund34246
Accrued income according to revenue recognition principles10 92818 042
Others420
Total13 27819 273
Assets – Parent Company20252024
Accrued invoices1 272586
Tax refund00
Accrued income according to revenue recognition principles00
Others420
Total1 313586
Liabilities – Consolidated20252025
Accrued personnel costs7 9768 012
Other accruals6 4877 606
Interests2123
Taxes23 6104 447
Total38 09420 088
Liabilities – Parent Company20252024
Accrued personnel costs4 3643 618
Other accruals4 0656 568
Interests2123
Taxes23 1234 254
Total31 57214 463
3.11. CONTIGENCIES AND COMMITMENTS
3.11.1. Leasing liabilities
Consolidated20252024
Due during the next reporting period3 2943 220
Due later5 4296 394
Total8 7249 614
Parent Company20252024
Due during the next reporting period1 7851 576
Due later2 7772 978
Total4 5624 554
3.11.2. Rental responsibility (for business premises)
Consolidated20252024
Due for payment during the following accounting period2 2351 131
Due for payment later6 6382 115
Total8 8733 246
Parent Company20252024
Due for payment during the following accounting period869348
Due for payment later3 476523
Total4 346871
3.11.3. Contingent liability on behalf of group companies20252024
Consolidated22 090255
Parent Company22 090255
3.11.4. Other contingent liabilities
Consolidated20252024
Contingencies on own behalf3 5323 457
Guarantees given by the bank for the company21 43321 433
Refund responsibility for value added tax on real estate investments4 1393 396
Parent Company20252024
Contingencies on own behalf3 3813 320
Guarantees given by the bank for the company21 43321 433
Refund responsibility for value added tax on real estate investments4 1393 396
3.11.5. Covenants
The company’s secured loans include covenant terms. The covenant terms for the financial year 2024 are solvency and net debt/EBITDA, and the covenant term for the financial year 2025 is net debt/EBITDA.
During the financial year 2025, the company repaid the loan that was subject to a solvency term. During the financial year 2025, the covenant terms were not breached.