Annual report
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STILLE röd: Pantone 1935 (#cb003d) CMYK: 0, 100, 65, 15 STILLE grå: Pantone 431 (#71777a) CMYK: 11, 0, 0, 65 STILLE Annual Report 2025
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Stille AB (publ) 2 |
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| 3 Annual Report 2025 Contents This is Stille 4 Comments from the CEO 6 About Stille 10 Surgical perfection. For life. 11 Our customers 14 Healthcare market 16 Financial targets and strategy 18 Business units 20 Surgical Instruments 22 Surgical Tables 26 The share and shareholders 30 Directors’ Report 32 Notes 46 Corporate governance 81 Auditor’s report 89 Signatures 93 Definitions 94
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offices in Sweden, the US, Germany, Switzerland, the UK and the United Arab Emirates 7 employees 200+ distributors 100+ THIS IS STILLE Surgical perfection. For life. Stille is a well-established pioneer in the development and manufacture of premium- quality surgical instruments, and a mark et leader in advanced mobile tables for fluoro- scopic surgery, with a differentiated offering in fast-growing niche marke ts for high- precision procedures. active markets 75+ Stille AB (publ)4 |
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| 5 Annual Report 2025 1 Before non-recurring items. NET SALES GROUP, MSEK NET DEBT/EBITDA1 GROUP EBITDA MARGIN1 GROUP, % Key performance indicators STILLE’S STRATEGY Stille’s strategy is centered around the delivery of profitable, attractive growth through product leadership, sales expansion, operational excellence and strategic acquisitions. OPERATIONAL EXCELLENCE Optimized, value- based pricing Automation of manufacturing processes Disciplined cost control Investments in research and development STRATEGIC ACQUISITIONS Further growth through strategic acquisitions of products and sales channels PRODUCT LEADERSHIP Premium products in cardiovascular surgery, microsurgery, thoracic surgery, neurosurgery, plastic surgery, and spine surgery SALES EXPANSION Continuous growth and sales development with strategic partners Maintain and develop strong global sales and service channels 1 2 3 4 202520232022 2024 Diagrammets maxhöjd --> Diagrammets nollpunkt --> 567.6 294.9 246.3 569.9 202520232022 2024 Diagrammets maxhöjd --> Diagrammets nollpunkt --> 20.0 21.1 17.1 25.0 202520232022 2024 Diagrammets maxhöjd --> Diagrammets nollpunkt --> 0.0 0.4 0.8 –0.6
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Stille AB (publ) 6 | COMMENTS FROM THE CEO
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| 7 Annual Report 2025 2025 was a challenging year but also characterized by important progress for the Stille Group. Operational performance was affected by supply chain challenges and other external headwinds. However, we finished the year with improving momentum. Strengthening the Stille Group in a challenging year Surgical Holdings acquisition A milestone during the year was the acquisition of Surgical Holdings in the UK. Surgical Holdings special- izes in developing, manufacturing, distributing and repairing surgical instruments and has built a strong reputation in the UK market. With the acquisition we significantly strengthened our position in the UK – one of the largest surgical instrument markets – and added complementary capabilities to the group, in-cluding a direct sales organization and a special- ized instrument repair and service platform. Our approach to building the group remains prag- matic. We leverage group capabilities where it cre- ates value – for example within operations and QA/ RA – while preserving the focus and close customer rela-tionships that characterize our companies. Operational performance during the year In 2025, net sales amounted to MSEK 567.6 (569.9), positively impacted by acquisition effects of MSEK 36.8 (Surgical Holdings) and negatively by
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Stille AB (publ) 8 | changerate effects of MSEK –15.9. EBITDA before non-recurring items amounted to MSEK 113.8 (142.4) and the EBITDA margin before non-recurring items was 20.0 percent. Demand for Stille’s products was strong during the year, especially for Surgical Instruments. However, net revenue was negatively affected by a combination of supply chain constraints, phase-out of non-strategic product and currency headwinds. Supply constraints within surgical instruments led to significant backorders. During the second half of the year, we began to see gradual improvements in the supply chain, allowing us to improve delivery perfor- mance and finish the year with stronger operation- al momentum. Strengthening execution capability During the year we announced a new Group struc- ture and Executive Management with Niklas Tyrén joining Stille as Group CFO and Martin Richardson as Group COO. With a strengthened group structure and management team, we reinforced Stille’s platform and positioned the company for continued organic growth and future acquisitions. As Stille develops into a broader group of special- ized companies, it becomes increasingly important to build structures that support operational execution while maintaining the specialist focus of the individu- al businesses. A key priority during the year has been improving our supply chain and reducing delivery times for Surgical Instruments. We have made signif- icant progress and expect delivery times to normalize during H1 2026. With a strengthened group and improving operational momentum, Stille enters 2026 with confidence.
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| 9 Annual Report 2025 Long term direction Stille’s strategy remains focused on premium sur- gi-cal solutions. By combining specialist companies with strong clinical reputations and complementary ca-pabilities, we are building a focused group serving demanding surgical niches. We have a market leading portfolio of products in both surgical instruments and surgical tables and with improved product availability we will have the foundation for long-term value creation. With a strong cash position and low net debt, we are also well positioned to continue strengthening the Stille Group through selective acquisitions. With a strengthened group and improving operation- al momentum, Stille enters 2026 with confidence. I would like to thank our employees for their dedica- tion and professionalism during the year and our cus- tomers, partners and shareholders for their contin- ued trust in Stille. Torshälla, April 2, 2026 Ulrik Berthelsen President and CEO
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Stille AB (publ) 10 | ABOUT STILLE
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| 11 Annual Report 2025 Over 180 years of premium quality The Stille of today is the result of over 180 years of innovation within health and medical care ser- vices. Since its founding by Albert Stille in 1841, the company has manufactured and marketed premi- um-quality surgical instruments that have made new types of surgery possible and facilitated the work of surgeons. In 1887, Stille also began manufacturing and mar- keting surgical tables, and the company is now a market leader in the segment of surgical tables that are used together with C-arms during minimally invasive vascular procedures. Surgical perfection and product leadership Stille’s vision is to provide products and solutions that enable perfect surgical procedures: Surgical perfec- tion. For life. Product leadership – achieved, for ex- ample, through solid product development in close partnership with leading surgeons – is therefore central to the company’s operations. Surgical perfection. For life. Founded in 1841, Stille AB (publ) is one of the world’s oldest medtech companies. With a focus on the needs of surgeons and patients, the Group develops, manu- factures and distributes medtech products that simplify and improve the healthcare process. ABOUT STILLE
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Stille AB (publ) 12 | DISTRIBUTORS From local medtech companies to global part- ners, there is a global network of thousands of representatives to market Stille’s products. 100+ EMPLOYEES Perfection, passion and reliability are the corner- stones that unite our employees in the pursuit for surgical perfection. 200+ OFFICES Stille’s head office is located in Torshälla, outside Eskilstuna in Sweden. The subsidiaries’ offices are in the US, Germany, Switzerland, the UK and the United Arab Emirates. 7 Brands associated with the highest quality Surgeons across the world know Stille’s brands thanks to the unique quality of their products. Backed by a strong brand profile, the company has a unique position in the market and good opportunities to further develop its offering and increase its mar- ket presence in the segments that are profitable for both the company and its customers. Strong distribution channels and global market presence Stille currently has offices in Sweden, Switzerland, Germany, the UK, the US and the United Arab Emir- ates.Through these offices, and together with the Group’s robust sales channels, the company’s market presence reaches across large parts of the globe. It is through these partners that the company achieves its market expansion. ACTIVE MARKETS Stille’s products are sold all over the world. The products can make the difference between a suc- cessful and a less successful surgical outcome. 75+
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| 13 Annual Report 2025 Chicago (US) Sales and assembly Torshälla (Sweden) Head office, sales, R&D and production Neuhausen (Switzerland) Sales and production Karlstein am Main (Germany) Sales and R&D Atlanta (US) Sales Dubai (UAE) Sales NORTH AMERICA 248 MSEK EUROPE 246 MSEK REST OF WORLD 74 MSEK Southend-on-Sea (UK) Sales, service and production
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Stille AB (publ) 14 | Our customers End customers in the healthcare sector use Stille’s premi- um products when there is no room for compromise and they want the best conditions for a successful surgical outcome. End customers are reached via the company’s strong distribution channels, which form the foundation of Stille’s global market presence. Distribution channels Stille conducts its main sales through three separate channels: partners, distributors and direct sales. Partners Partners are companies that integrate and sell Stille’s devices in their own operating room offering. These are usually manufacturers of mobile C-Arms, such as GE Healthcare, Ziehm Imaging, Siemens Healthineers and Philips. These channels enable Stille to reach the entire global market. Distributors Distributors are companies that sell medtech products to national healthcare providers. These are primarily distributors with a complementary product offering that drives Stille’s growth, such as Synovis Micro Companies Alliance in the US market. Direct sales Products are sold directly to end customers in Sweden, the UK and, to a certain extent, in the US, Germany, the United Arab Emirates and India.
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| 15 Annual Report 2025 End customers Stille’s sales are aimed at several different healthcare segments. The most important segments are hospi- tals, clinics and outpatient surgery units. Hospitals Hospitals account for the largest proportion of Stille’s sales. The majority of planned and emergency sur- geries, including cardiovascular procedures, take place in a hospital and the number of surgeries is also growing steadily. Clinics Privately owned, independent clinics are common, especially in fields such as aesthetic plastic surgery, gynecology and orthopedics. Orthopedic clinics often specialize in specific medical conditions and the num- ber of surgical procedures performed at independent clinics is growing. The market for aesthetic plastic surgery is also showing strong growth. Outpatient surgery units Outpatient surgery units are healthcare facilities fo- cused on procedures that only require a short or lim- ited period of postoperative care in the hospital. Due to technological advancements and new surgical techniques, such as minimally invasive procedures, more and more types of surgery can be performed in outpatient surgery units, allowing more patients to receive treatment. There is a trend in Europe and the US where standard planned surgical procedures are being moved from hospitals to outpatient surgery units. The number of surgical procedures 1 carried out in outpatient surgery units is projected to grow 6–7 percent annually be- tween 2025 and 2029. 1 Statista Market Insights Apr 2024 “Outpatient Care,” Grand View Research 2024 “US & Europe Ambulatory Surgery Centers Market Size, Share & Trends 2025-2030,” and internal estimates.
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Stille AB (publ) 16 | Healthcare market More and more resources are being allocated to health and medical care globally, and the number of hospitals and medical facilities is growing. About 350 million surgical procedures 1 are performed in a typical year, and this number is expected to continue rising due to an aging population, rising rates of cardiovas- cular diseases, a higher prevalence of chronic condi- tions and improved economic conditions both in so- ciety as a whole and at the individual level. The number of hospitals is growing and will continue to dominate the global market for highly specialized and advanced healthcare. Stille’s focus includes solutions for cardiovascular surgery, a field that is growing due to more people living longer, which is increasing the need for both preventive and treatment procedures. Stille is also focused on solutions for microsurgery and minimal- ly invasive heart surgery, where growth is being driv- en by increasing demand for more advanced surgical procedures and instruments. General market growth for all of the product catego- ries in Stille’s product range is therefore expected. The global healthcare market is growing. New surgical techniques and increased average life expectancy are some of the factors affecting healthcare and, conse- quently, the conditions for Stille’s business operations. 1 Dobson, G. 2020. “Trauma of major surgery: A global problem that is not going away,” and internal estimates.
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| 17 Annual Report 2025 INSTRUMENTS FOR OPEN SURGERY1,2,5 MUSD 6,500 CAGR 4–7% MICRO INSTRUMENTS3,5 MUSD 250 CAGR 5–8% 1 Grand View Research, 2024, Hand-held Surgical Instruments Market Size, Share & Trends Analysis Report 2025–2030. 2 Industry ARC, 2023, Surgical Instruments Market – Global Opportunity Analysis & Industry Forecast, 2023–2030. 3 Grand View Research, 2022, Microsurgery Market Size, Share & Trends Analysis 2023–2030. 4 Global Market Insights, 2023, Surgical Table Market – Global Forecast 2024–2032. 5 Internal estimates. MOBILE SURGICAL TABLES4,5 MUSD 400 CAGR 4–8%
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Stille AB (publ) 18 | Growth and profitability Stille has a clear growth agenda, and this growth will be delivered with sustained high profitability. The financial targets include organic growth ex- ceeding 10 percent, an EBITDA margin1 exceeding 25 percent and net indebtedness (net debt/EBIT- DA ratio1) of less than 3. Financial targets and strategy Stille’s strategy is centered around the delivery of profitable, attractive growth through product leadership, sales expansion, operational excellence and acquisitions. An investment in Stille is to provide stable long-term returns for our shareholders. We ensure this by focusing on Stille’s foundation: premium prod- ucts for niche clinical segments. EBITDA margin1 over time > 25% (20.0)1 FINANCIAL TARGETS (OUTCOME 2025) ORGANIC GROWTH GROUP, % net debt/EBITDA1 over time < 3.0X (0.0) organic growth > 10% (–6.9) 1 Before non-recurring items. 202520232022 2024 –6.9 19.7 12.7 11.5
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| 19 Annual Report 2025 Stability To remain a profitable long-term investment, the company’s ambitious growth targets need to be achieved while also ensuring financial stability. This is reflected in our objective to maintain a net debt/EBITDA ratio 1 of less than 3. For acquisitions or major investments, bank loans may be relev ant. Shares may be issued in connection with major acquisitions. Strategy to achieve our targets Stille’s strategy is based on four pillars: product lead- ership, sales expansion, operational excellence and acquisitions. A fundamental aspect of the strategy is a clear focus on high-quality premium products in selected clinical niche segments. At the core of delivering this strategy is the compa- ny’s continued production of premium products with a focus on selected clinical niche segments. EBITDA MARGIN1 GROUP, % NET DEBT/EBITDA1 GROUP PILLARS OF STILLE’S STRATEGY 1. Product leadership: Offer and develop products of the highest quality with a focus on clinical niche segments. 2. Sales expansion: Gain market share in the most attractive market segments via sales channel synergies and development. 3. Operational excellence: Profitable growth via value-based pricing, selective automation of production, product innovation and disciplined cost control. 4. Strategic acquisitions: Acquisitions of comple- mentary operations and products. 1 Before non-recurring items. 202520232022 2024 20.0 21.2 17.1 25.0 202520232022 2024 0.0 0.4 0.8 –0.6
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Stille AB (publ) 20 | BUSINESS UNITS
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| 21 Annual Report 2025 Our business units No matter the product portfolio, product leader- ship and innovation have been part of Stille’s busi- ness concept since 1841. Today, the operations are divided into two business units: Surgical Tables and Surgical Instruments. Surgical Instruments Surgical Tables MSEK 569.9 BUSINESS UNITS 24% 76% MSEK 567.6
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Stille AB (publ) 22 | Product development and world-class innovation Stille was founded as a solution to the shortage of product development and innovation in surgical in- struments. Since 1841, the company has pursued technological development that has made new types of surgical procedures possible. Stille revolutionized the market, for example, in 1923 as the first com- pany in the world to manufacture its instruments in stainless steel. In 1982, Stille also invented the SuperCut scissors. In contrast to their predecessors, these scissors had specially designed cutting surfaces – a combination of scissor and knife edges – allowing them to cut with very high precision all the way to the tip. To this very day, STILLE SuperCut is considered by leading surgeons to be the best scissors in the world. Market development The global surgical instrument market is experienc- ing strong growth. The market size is an estimated USD 6.5 billion and projected to grow by 4–7 per- cent per year. In this market, sales of micro instru- ments are estimated at MUSD 250 and projected to grow by 5–8 percent per year. Growth in micro in- struments, where Stille holds a strong position due to Precision, durability and feel Precision, durability and feel are characteristic qual- ities of all Stille’s instruments. This has made Stille’s premium instruments both well-known and appreci- ated among leading surgeons across the world. The portfolio includes everything from ordinary surgical scissors to unique SuperCut scissors, for ceps, clamps and retractors to a broad range of micro instruments. Surgical Instruments A portfolio of surgical instruments in the premium segment for open surgery, including microsurgery.
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| 23 Annual Report 2025 the acquisition of S&T, is partially being driven by in- creased demand in cardiac and vascular surgery as well as plastic surgery. The global cardiac surgical instruments market gen- erated sales of USD 1.6 billion in 2018 and is pro- jected to grow by 6–8 percent by 2026. This can be attributed to the increase in preventive, planned and emergency procedures due to various diseases such as diabetes, obesity and hypertension as well as an aging population. According to the World Health Or- ganization (WHO), an estimated 17.9 million people die annually from cardiovascular diseases, represent- ing 31 percent of all global deaths. At the same time, the global plastic surgery market, where the Stille Group’s instruments are used, is ex- pected to grow at a CAGR of 7–9 percent by 2027. This is due to increased demand for aesthetic surgical KEY CUSTOMERS Our key customers in surgical instruments include end customers and major distribution channels in the export market. Synovis MCA KEY MARKETS The business unit’s key markets are mainly the US and Sweden, but also countries such as Germany, Japan, India and the UK. US UK Sweden Germany Japan India THE GROUP’S BRANDS STILLE instruments have been manufactured since 1841. Today, they are the only instruments forged from round steel by the company itself. This is a manufacturing method that yields exceptional dura- bility and feel. S&T is the leading brand in the global micro instru- ment market. Since the beginning, these products have enabled the development of microsurgery and are today considered to be the world’s best micro instruments. FEHLING offers a broad range of premium products to surgeons, with a focus on demanding specialties such as open and minimally invasive cardiac, thoracic, neuro and spine surgery. SURGICAL HOLDINGS specializes in the develop- ment, distribution and repair of high-quality surgical instruments. Their offering encompasses instru- ments for general surgery and orthopedics as well as specialized repair services for surgical instruments, rigid endoscopes and orthopedic power tools. procedures, accessibility through medical tourism and the availability of disposable income per capita. The cardiac and vascular surgery and plastic surgery segments are therefore experiencing strong growth. Common for these surgical disciplines is that surgeons often need to suture both blood vessels and nerves, which requires very fine and precise instruments. Surgeons choose instruments from the Stille Group when they need durable premium instruments with high precision and feel. Stille’s proportionally low mar- ket shares outside the Nordic region combined with a strategic focus on specific surgical disciplines experi- encing growth, indicat es strong growth potential. Market competitors include Aesculap (B. Braun Medical) Medical, KLS Martin, Medicon and Scanlan.
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Stille AB (publ) 24 | Development during the financial year The Surgical Instruments business unit delivered a stable performance in a challenging 2025, supported by the acquisition of Surgical Holdings. Excluding ac- quisition effects, sales were impacted during the year by delivery challenges due to our suppliers being un- able to meet growing demand after a strong 2024, when instrument inventories decreased. The com- parison with the prior year is also impacted by the phase-out of non-strategic areas of the instrument portfolio corresponding to MSEK 24.3. Furthermore, the year was characterized by the introduction of tariffs in the US and negative currency effects for the Group, which impacted both sales and profitability. End customers continue to seek a broad product portfolio to address a wide array of clinical challeng- es. The Stille Group’s offering is crucial in this regard for both minimally invasive and open surgery. By of- fering four of the most prominent surgical instru- ment lines in terms of quality – STILLE, S&T, Fehling and Surgical Holdings – we create value for distribu- tors and end customers. Stille Group’s premium port- folio now spans cardiovascular, plastic, spine and mi- crosurgery disciplines, where leading surgeons the world over choose our brands. REVENUE KSEK EBIT1 KSEK 1 Before non-recurring items. 202520232022 2024 428,693 167,752 132,578 432,264 202520232022 2024 71,722 37,732 21,917 97,380
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| 25 Annual Report 2025 Acquisition of Surgical Holdings We strengthened the Stille Group during the year with the acquisition of Surgical Holdings, a UK-based, family-owned company specializing in the develop- ment, distribution, and repair of surgical instruments. It significantly strengthens our position in the UK – one of the world’s largest markets for surgical instru- ments – where we now have our own sales team. Stille’s instruments just work – every time. You never have to worry about their quality or whether you can rely on them. Dr. Mark Jewell, M.D., P.C. Plastic Surgeon EBIT MARGIN1 % 202520232022 2024 16.7 23.2 16.6 22.5 1 Before non-recurring items.
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Stille AB (publ) 26 | Taking minimally invasive development forward Product development is the cornerstone of the busi- ness unit, which is Stille’s vehicle for taking minimally invasive surgery forward. Development of new surgical tables always takes place in close collaboration with leading surgeons and our partners. One example is the imagiQ3 surgical table that was launched in November 2024. Time-saving multidisciplinary surgical tables Stille’s portfolio of surgical tables is used in a number of different surgical disciplines, including cardiovas- cular surgery, pain management, ERCP and urologi- cal procedures. The surgical tables are characterized by their high level of functionality that reduces surgery time and increases the likelihood of a good outcome. This makes them an attractive choice for surgeons and the OR team. KEY PARTNERS Customers for our surgical tables include some of the world’s largest companies. The products are of- ten sold packaged with customers’ X-ray equipment. THE GROUP’S BRANDS imagiQ is the leading brand in the fluoroscopic sur- gery market. The surgical table is characterized by its unique radiolucency and functionality that reduce both surgery time and radiation exposure. In 2024, the third generation, imagiQ3 Legacy, was launched, building on the successful legacy of previous generations combined with imagiQ3 Service Integration, which helps to troubleshoot and diagnose problems remotely. Medstone supplements the product portfolio by being a cost-efficient table for simpler procedures, for example, in pain management and ERCP, where good radiolucency is necessary. Surgical T ables Market-leading radiolucent surgical tables designed for use with C-arms during minimally invasive procedures where image quality, low radiation dose and precision are critical.
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| 27 Annual Report 2025 KEY MARKETS In addition to the US, the business unit’s key markets include the largest countries in Europe. The surgical disciplines for which the surgical tables are then used can vary from market to market. Market development The size of the global market for mobile surgical ta- bles is an estimated USD 400 million with a CAGR of 4–8 percent. The US is the largest market, followed by the European countries of the UK, France, Italy and Germany. The share of minimally invasive surgical procedures is continuously growing. The global market generat- ed sales of USD 33 billion in 2024 and is projected to reach USD 63 billion by 2030. Compared with tra- ditional open surgery, minimally invasive procedures result in a shorter hospital stay, reduced patient trauma and faster recovery. The growth of these procedures is being driven, in turn, by the increasing prevalence of diseases such as osteoarthritis, cancer, and cardiovascular diseases, which typically require surgical treatment. The underlying factor is increased life expectance and a higher proportion of elderly in the global population. The shift from open to minimally invasive surgery re- quires visualization for the surgeon to perform the procedure. This visualization is achieved using X-ray equipment that can either be stationary or mobile (C-arm), i.e. built on wheels. The C-arm can there- fore be moved between operating rooms, providing extra flexibility. Stille’s surgical tables belong to this category and are designed for use with a C-arm. The growing need for minimally invasive procedures combined with the need for flexible solutions means that the prevalence of specialized imaging in op- erating rooms with either hybrid or mobile C-arms is expected to increase. These types of operating rooms will require the development of platforms that can integrate and create synergies between imag- ing technologies and various types of surgical equip- ment. The value of the hybrid operating room market is projected to reach USD 1.8 billion by 2026, at a CAGR of 12 percent between 2019 and 2026. The Asia-Pacific region (including Japan) is expected to show the largest growth due to improved health- care infrastructure, creating an attractive market Italy GermanyUS France Japan
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Stille AB (publ) 28 | over time. Stille is already a market leader in mobile radiolucent surgical tables for minimally invasive vas- cular surgery in Japan with imagiQ. Overall, the current market conditions present a ma- jor business opportunity, based on the fact that Stille is a leader in mobile surgical tables for vascular pro- cedures designed for use with C-arms. Competitors in the market include Steris, Biodex, Image Diagnostics Inc, Mizuho, Surgical Tables Inc, Oakworks Inc, Medifa and Famed. Development during the financial year The Surgical Tables business unit continued to devel- op favorably in 2025. Although negative currency effects and tariffs impacted both sales and profitabil- ity, year-on-year growth was 1 percent. Sales in the first half of the year were negatively impacted by the fact that Stille’s partner was in the process of replac- ing imagiQ2 with imagiQ3 Legacy at the time, and by the FSCA carried out during the second quarter, which temporarily halted deliveries of imagiQ3 Leg- acy. Sales improved somewhat in the third quarter and ended the year with strong growth in the fourth quarter, resulting in growth for the year. The launch of our flagship product ImagiQ3 further strengthened our position in the premium segment for radiolucent surgical tables. Demand was strong and is continuing to grow, both in the US and in the rest of the world, and we are therefore confident that 2026 can improve even further. REVENUE KSEK 202520232022 2024 138 936 132 141 113 141 137 685
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| 29 Annual Report 2025 202520232022 2024 8 616 10 532 10 543 17 536 202520232022 2024 6,2 8,0 9,3 12,7 The Free Float technology in imagiQ™ allows me to move the tabletop as if it were an extension of my own arm. Dr. Peter Goverde, M.D. Senior Endovascular & Vascular Surgeon EBIT1 KSEK EBIT MARGIN1 % 1 Before non-recurring items.
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Stille AB (publ) 30 | THE SHARE AND SHAREHOLDERS
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| 31 Annual Report 2025 Share capital According to the Articles of Association for Stille AB, the share capital shall amount to at least MSEK 33 and to no more than MSEK 132. All shares – 8,985,447 with a quotient value of SEK 5 – are fully paid and entitle the holder to an equal share in the company’s assets. Dividend Stille’s policy is that the dividend is based on the Group’s earnings trend, growth opportunities and financial position. The Board proposes to the AGM that no dividend be distributed (0.00) for the 2025 financial year. THE SHARE AND SHAREHOLDERS SHAREHOLDERS NUMBER OWNERSHIP SHARE Linc AB 2,056,075 22.9% Impilo AB 2,056,075 22.9% Lannebo Kapitalförvaltning 692,217 7.7% SEB Funds 451,046 5.0% ShapeQ GmbH 418,884 4.7% Avanza Pension 398,516 4.4% Ramhill AB 372,209 4.1% Aktia Asset Management 360,353 4.0% Nordnet Pensionsförsäkring 355,571 4.0% Fondita Fund Management 180,000 2.0% Total 7,340,946 81.7% Stille’s share is listed on the Nasdaq OMX First North Growth Market under the ticker “STIL”, ISIN code SE0000998650. Eminova Fondkommission AB is the Certified Adviser, +46 8 684 211 10, adviser@eminova.se. SEK 196 SHARE PRICE MSEK 1,761 MARKET CAP STIL OMXSPI –4% 9% SHARE DEVELOPMENT (JAN 1–DEC 31) SEK 166–275 LOW/HIGH (JAN 1–DEC 31) 3,042 SHAREHOLDERS 8,985,447 SHARES SHARE AND OWNERSHIP DATA DECEMBER 31, 2025
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Stille AB (publ) 32 | Directors’ Report The Board of Directors and CEO of Stille AB (publ), 556249- 4848, hereby submit the annual report and consolidated financial statements for 2025. The results of the Group’s and Parent Company’s operations for the year are presented in the following income statements, balance sheets, cash flow statements, statements of changes in equity and notes. General information about the business Founded in 1841, Stille AB (publ) is one of the world’s oldest medtech companies. With a focus on the needs of surgeons and patients, the Group develops, manufactures and distributes medtech products that simplify and improve the healthcare process. Operations are conducted in Sweden, Switzerland, Germany, the US, the UK and UAE, with Group-wide functions in research and development, marketing, quality management, risk management and financial control. The end customers are mainly hospitals, clinics and outpatient surgery units. Products are mainly sold via distributors, except in Sweden, the UK and, to a cer- tain extent, in the US, Germany, UAE and India. Net sales and earnings In 2025, a relatively stable sales trend was noted in both business units. Compared with 2024, net sales decreased 0.4 percent (–6.9 percent organically) or MSEK 2.3 (MSEK –39 organically) to MSEK 567.6. Sales for the year were positively impacted by ac- quisition effects of MSEK 36.8, and negatively im- pacted by currency translation effects of MSEK 15.9. Underlying currency translation effects for the year amounted to MSEK 20.6, but were offset by the rec- ognition of hedging gains of MSEK 4.7 in the sec- ond and third quarter in net sales. This ceased in the fourth quarter, when hedging gains were recognized as financial income. The gross margin for the financial year was 50.7 per- cent (51.9). Excluding acquisition effects, the gross margin was 51.6 percent. The gross margin for the
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| 33 Annual Report 2025 year was negatively impacted by currency effects and tariffs, but positively impacted by the market mix. Total expenses for the Group amounted to MSEK 214.7 (225.2), of which MSEK 151.5 (130.1) was related to selling expenses. MSEK 56.6 (53.4) was related to administrative expenses. Non-recurring items amounted to MSEK 7.1 (44.5), comprising ac- quisition-related costs of MSEK 7.1 pertaining to the acquisition of Surgical Holdings. Other operating in- come and expenses amounted to MSEK 0.5 (2.7) net, mainly comprising exchange-rate fluctuations and contributions. Consolidated depreciation and amortization for the financial year amounted to MSEK 33.5 (27.5). De- preciation amounted to MSEK 3.6 (3.2) for tangible assets and MSEK 10.7 (4.9) for right-of-use assets. Amortization of intangible assets amounted to MSEK 19.2 (19.5). For 2025, the Group’s net financial items amounted to MSEK 2.1 (–1.3), of which MSEK 2.1 (3.5) relat- ed to exchange-rate effects. Consolidated profit be- fore tax amounted to MSEK 75.4 (69.2). Consolidat- ed income tax for the year amounted to MSEK 19.7 (11.0). Consolidated net profit for the year amount- ed to MSEK 55.7 (58.2). Earnings per share amount- ed to SEK 6.20 (6.48). Surgical Instruments business unit In 2025, sales in the Surgical Instruments business unit amounted to MSEK 428.7 (432.3). Excluding acquisition effects, sales amounted to MSEK 391.9 (432.3). Instrument sales during the year were im- MSEK 2025 2024 2023 2022 2021 2020 Net sales 567.6 569.9 294.9 246.3 187.1 142.6 Gross profit, % 50.7 51.9 44.8 45.3 44.6 40.3 EBITDA before non-recurring items 113.8 142.4 62.6 42.1 30.3 18.9 EBITDA before non-recurring items, % 20.0 25.0 21.2 17.1 16.2 13.2 EBITDA 106.7 98.0 59.3 42.1 26.8 18.9 EBITDA, % 18.8 17.2 20.1 17.1 14.3 13.3 EBIT before non-recurring items 80.3 114.9 48.3 32.5 23.6 14.5 EBIT before non-recurring items, % 14.2 20.2 16.4 13.2 12.6 10.2 EBIT 73.2 70.5 45.0 32.4 20.1 14.5 EBIT, % 12.9 12.4 15.2 13.2 10.7 10.2 Profit after tax 55.7 58.2 26.6 27.3 16.1 8.3 Earnings per share, SEK 6.20 6.48 5.31 5.45 3.21 1.71 Equity/assets ratio, % 67.2 69.9 78.6 55.4 48.0 67.3 Net debt/EBITDA * LTM 0.0 –0.6 0.4 0.8 1.7 –0.7 MULTI-YEAR REVIEW
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Stille AB (publ) 34 | pacted by delivery challenges, the phase-out of non-strategic areas of the portfolio, currency effects and tariffs. However, the sales trend in the US was particularly encouraging. Surgical T ables business unit Sales in the Surgical Tables business unit amount- ed to MSEK 138.9 (137.7). Sales were weak in the first half of the year, but improved somewhat in the third quarter and ended the year with strong growth in the fourth quarter, resulting in growth for the year despite negative exchange-rate effects. Employees The average number of full-time employees (FTEs) in the Group was 177 (147). At December 31, the Group had 210 employees (142). The proportion of women was 38.4 percent (43.5). Health and safety Stille works actively to minimize work-related inju- ries for our employees in production. This can include rotation in production in order to prevent repetitive strain injuries resulting from monotonous tasks. Ac- tive safety work is continuously taking place in pro- duction with representatives from management, employees and external consultants. Employees in production in Torshälla are connected to Smedhälsan occupational health services, which includes regular health checks and a wellness program for employees. The company has adopted and adheres to a Code of Conduct. The Code set out the principles for how everyone in the Group should behave in their rela- tionships with employees, business contacts, other stakeholders and shareholders. The Code is based on Stille’s values and vision, and ensures that the com- pany is run with integrity and complies with laws and regulations. For information on our sustainability work, refer to the separate Sustainability Report on our website. Responsibilities Stille’s duty of responsibility covers product quality, process quality, environmental and climate impact, and working conditions. The company strives to meet external expecta- tions for high quality and flawless production in ac- cordance with current laws, regulations and ethical standards. This ensures that the company maintains a strong market position and retains a high level of trust among customers, partners, authorities and employees. Quality Stille has implemented a quality management sys- tem that is established and ISO 13485:2016-certi- fied. All employees, regardless of their function in the organization, follow the procedures and rules pre- scribed in the quality management system in their daily work. The company’s surgical table and non-invasive sur- gical devices are compliant with Regulation (EU) 2017/745 on medical devices (MDR), while its reusable surgical instruments, implants and devic- es with a measuring function are compliant with the Medical Device Directive – Council Directive 93/42/ EEC and Post-market Surveillance (PMS) under Arti- cle 83 of Regulation (EU) 2017/745 on medical de- vices (MDR). Efforts with CE marking of the company’s reus- able surgical instruments, implants and devices with a measuring function are ongoing in accordance with Regulation (EU) 2017/745 on medical de- vices (MDR). These are “legacy devices” and cov- ered by the transitional provisions in Regulation (EU) 2017/745 on medical devices (MDR) and, under the MDD, can be marketed in the EU until December 31, 2028. From a regulatory perspective, this ensures that these devices can also be delivered to new and existing customers while preparing them for certifi- cation under Regulation (EU) 2017/745 on medical
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| 35 Annual Report 2025 devices (MDR) as well as during the subsequent as- sessment period with the Notified Body. All medical devices also comply with the require- ments of the US Food and Drug Administration’s (FDA) 21 CFR Part 820 Quality System Regulation. Environmental and climate impact In its operations, Stille is required to comply with en- vironmental laws and regulations, and also strives to minimize its environmental and climate impact in relation to energy, chemicals and transportation. Chemical use is managed via an active chemical reg- ister, where the aim is to control and minimize the use of various chemicals and thereby reduce emis- sions. Waste and by-products from production pro- cesses are sorted in a manner that maximizes their potential for recycling. The transportation and envi- ronmentally friendly disposal of chemicals and waste is carried out by approved transport companies. For information on our sustainability work, refer to the separate Sustainability Report on our website. Financial position The Group’s equity/assets ratio was 67.2 percent (69.9). Consolidated equity at the end of the period totaled MSEK 708.7 (699.4). The Group has a bank overdraft facility of MSEK 50 (15), of which MSEK 0.0 (0.0) had been utilized as of December 31. Assets The Group’s tangible assets amounted to MSEK 41.3 (36.6), and were mainly related to land and buildings, personal computers, machinery and equipment. The Group’s intangible assets amounted to MSEK 548.2 (503.9), and were mainly related to customer rela- tionships, brands and capitalized costs for product development, software and goodwill. Right-of-use assets amounted to MSEK 51.3 (35.1) and related to leases for vehicles and premises. Consolidated inventory amounted to MSEK 182.1 (144.7), corresponding to 65.1 percent (52.8) of the cost of goods sold. At the end of the period, con- solidated accounts receivable amounted to MSEK 88.0 (76.2), corresponding to 15.5 percent (13.4) of consolidated net sales. The Group’s prepaid expens- es and accrued income amounted to MSEK 7.5 (5.3). Other receivables amounted to MSEK 11.5 (25.6). Investments In 2025, net investments in tangible and intangi- ble assets amounted to MSEK 20.5 (excluding acqui- sitions of operations) (14.3). Of this amount, MSEK 2.7 (7.0) was capitalized as development costs for new products. Of capitalized development costs, MSEK 0.6 (1.8) pertained to capitalized personnel expenses and MSEK 2.1 (5.3) to capitalized external development costs. Liabilities Liabilities related to right-of-use assets totaled MSEK 52.5 (37.1), of which MSEK 41.8 (31.0) was non-current and MSEK 10.7 (6.1) current. Liabilities for right-of-use assets arise from the cap- italization of leases for vehicles and rent for premis- es under IFRS 16. This item has its counterpart on the asset side of the right-of-use assets line item. Cash flow statement Cash flow from operating activities before changes in working capital amounted to MSEK 85.9 (103.7). Cash flow from operating activities after changes in working capital amounted to MSEK 36.1 (73.7). Changes in working capital amounted to MSEK –49.9 (–30.1). Cash flow from investing activities, including acqui- sitions, amounted to MSEK –104.3 (–330.4) and, in addition to the business acquisition, consisted of in- vestments in new products, new production equip- ment and MDR readiness. Cash flow from financ- ing activities was mainly due to newly raised loans for the purchase of Surgical Holdings (MSEK 59.2) and repayments of loans raised. Cash flow for the peri- od totaled MSEK –32.1 (–85.4). Consolidated cash and cash equivalents at the end of the period totaled MSEK 118.7 (158.5).
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Stille AB (publ) 36 | Parent Company For the 2025 financial year, net sales in the Parent Company amounted to MSEK 185.0 (179.9). Profit after tax totaled MSEK 17.0 (3.6). The balance sheet total was MSEK 822.3 (773.9). Equity amounted to MSEK 575.3 (558.3). Related-party transactions Stille’s related parties and transactions with related parties are described in Note 10 of the Annual Re- port. No transactions between Stille and related par- ties that had a material impact on the company’s po- sition and earnings were conducted during the year. Future development The company is committed to achieving its long- term growth targets. The future development of the company will therefore continue on the same track as in previous years. The company’s product development remains a pri- ority to ensure future product leadership. Strong product development is fundamental to Stille’s or- ganic growth. Throughout its more than 180-year operating history, the company has enabled numer- ous new types of surgical procedures due to its in- novation capabilities. The company will also continue to actively evaluate potential acquisitions in strategic market segments to complement its organic growth strategy. Geopolitical situation Geopolitical developments have created greater un- certainty in the world and could impact the Group’s operations, for example through supply chain dis- ruptions and changes in trading conditions. Given the Group's business model and geographic expo- sure, the direct impact on its operations is current- ly deemed to be limited. However, developments are being continuously monitored. Significant events after the end of the financial year No significant events occurred after the end of the financial year. Disputes During the year, the company was subject to a product liability claim in the US market for a surgical table sold in 2009 that is no longer part of the company’s prod- uct portfolio. Based on available information and after consultation with external advisors, the Board’s assess- ment is that the outcome of this dispute is not expect- ed to have a material negative impact on the company’s financial position or earnings. Board composition and work Information about the company’s management and the Board’s work during the year can be found in the Cor- porate Governance Report on pages 81–87 of the An- nual Report. Proposal for appropriation of profit at the 2025 AGM The following profit is at the disposal of the AGM: PARENT COMPANY, SEK Share premium reserve 462,492,677 Retained earnings 15,926,901 Profit reported for the year 16,988,386 Total 495,407,964 The Board’s proposed appropriation of profit Dividend — To be carried forward 495,407,964 Dividend The Board proposes to the AGM that no dividend be distributed per share (0) for the 2025 financial year. The total dividend is proposed to be MSEK 0.0 (0.0).
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| 37 Annual Report 2025
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Stille AB (publ) 38 | Income statement and statement of comprehensive income GROUP KSEK NOTE 2025 2024 Net sales 5 567,629 569,950 Cost of goods sold 7, 8, 9, 11 –279,658 –274,308 Gross profit 287,971 295,641 Other operating income 6 5,654 4,454 Selling expenses 7, 8, 9, 11 –151,572 –130,088 Administrative expenses 7, 8, 9, 11 –56,608 –53,386 Transaction costs 7, 8, 9, 11, 15 –7,096 –20,384 Non-recurring items — –24,082 Other operating expenses 6 –5,107 –1,705 EBIT 73,242 70,450 Financial income 12 6,338 14,293 Financial expenses 13 –4,200 –15,573 Profit before tax 75,380 69,170 Income tax 14 –19,680 –10,964 Net profit for the year of which attributable to Parent Company share- holders 55,700 58,206 Other comprehensive income Items that may be reclassified to profit or loss: Translation differences in foreign currency –46,393 8,949 COMPREHENSIVE INCOME FOR THE YEAR of which attributable to Parent Company shareholders 9,307 67,155 Earnings per share, SEK before and after dilution 6.20 6.48
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| 39 Annual Report 2025 Balance sheet GROUP KSEK NOTE Dec 31, 2025 Dec 31, 2024 ASSETS Non-current assets Goodwill 16 165,080 136,777 Brands 17 151,883 149,467 Customer register 18 169,646 170,692 Other intangible assets 19 61,563 47,008 Intangible assets 548,172 503,944 Land and buildings 20 27,554 28,442 Other tangible assets 21 13,784 8,177 Right-of-use assets 22 51,262 35,147 Tangible assets 92,600 71,765 Other financial assets 287 — Deferred tax assets 14 5,568 12,072 Total non-current assets 646,627 587,781 Current assets Inventory 24 182,055 144,683 Accounts receivable 25 87,972 76,225 Tax assets 14 2,958 Other receivables 11,453 25,640 Prepaid expenses and accrued income 26 7,482 5,336 Cash and cash equivalents 27 118,660 158,485 Total current assets 407,622 413,327 TOTAL ASSETS 1,054,249 1,001,108 EQUITY AND LIABILITIES Equity attributable to Parent Company shareholders Share capital 44,927 44,927 Other contributed capital 462,493 462,493 Translation reserves –1,530 44,863 Retained earnings, including net profit for the year 202,822 147,122 Total equity 28 708,712 699,405 Non-current liabilities Deferred tax liability 14 94,339 89,507 Other provisions 30 27,771 39,970 Liabilities to credit institutions 4,31,33 65,772 5,000 Liabilities related to right-of-use assets 4.31 41,837 30,983 Total non-current liabilities 229,720 165,460 Current liabilities Liabilities to credit institutions 4,31,33 5,000 20,957 Liabilities related to right-of-use assets 4.31 10,654 6,149 Accounts payable 4 23,871 16,821 Tax liability 14 10,245 14,152 Other liabilities 34,617 44,367 Accrued expenses and deferred income 32 31,431 33,797 Total current liabilities 115,818 136,242 TOTAL EQUITY AND LIABILITIES 1,054,249 1,001,108
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Stille AB (publ) 40 | KSEK SHARE CAPITAL OTHER CONTRIBUTED CAPITAL TRANSLATION RESERVE RETAINED EARNINGS INCL. NET PROFIT FOR THE YEAR EQUITY Opening balance, January 1, 2025 44,927 462,493 44,863 147,122 699,405 Comprehensive income Net profit for the year — — — 55,700 55,700 Exchange differences — — –46,393 — –46,393 Comprehensive income — — –46,393 55,700 9,307 Transactions with shareholders New share issue — — — — — Change in carrying amount of assets — — — — — Total transactions with share- holders — — — — — CLOSING BALANCE, DECEMBER 31, 2025 44,927 462,493 –1,530 202,822 708,712 GROUP KSEK SHARE CAPITAL OTHER CONTRIBUTED CAPITAL TRANSLATION RESERVE RETAINED EARNINGS INCL. NET PROFIT FOR THE YEAR EQUITY Opening balance, January 1, 2024 25,067 482,352 35,917 88,916 632,254 Comprehensive income Net profit for the year — — — 58,206 58,206 Exchange differences — — 8,946 — 8,946 Comprehensive income — — 8,946 58,206 67,152 Transactions with shareholders New share issue 19,860 –19,860 — — — Change in carrying amount of assets — — — — — Total transactions with shareholders 19,860 –19,860 — — — CLOSING BALANCE, DECEMBER 31, 2024 44,927 462,493 44,863 147,122 699,405 Statement of changes in equity GROUP
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| 41 Annual Report 2025 Cash flow statement GROUP KSEK NOTE 2025 2024 Operating activities EBIT 73,241 70,450 Adjustment for non-cash items 34 36,235 45,531 Interest received 355 287 Interest paid –4,207 –3,048 Tax paid –19,698 –9,478 Cash flow from operating activities before change in working capital 85,926 103,742 Changes in working capital Change in inventory –28,785 –9,261 Change in operating receivables 3,391 –9,228 Change in operating liabilities –24,477 –11,589 Changes in working capital –49,871 –30,078 Cash flow from operating activities 36,055 73,664 Investing activities Acquisition of intangible assets 17,18,19 –14,191 –11,975 Acquisition of tangible assets 20,21,22 –6,404 –3,109 Divestments of tangible assets 133 788 Acquisition of operations 15 –83,839 –316,148 Cash flow from investing activities –104,301 –330,444 Financing activities Dividend to shareholders — — Repayment of debt 31 –23,056 –37,819 New share issue, net — 209,219 Loans raised 31 59,218 — Cash flow from financing activities 36,162 171,400 CASH FLOW FOR THE YEAR –32,084 –85,380 Cash and cash equivalents at start of year 158,485 241,446 Translation difference –7,741 2,420 Cash and cash equivalents at end of year 27 118,660 158,486
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Stille AB (publ) 42 | KSEK NOTE 2025 2024 Net sales 5 184,981 179,939 Cost of goods sold 7,8,9,11 –109,910 –118,094 Gross profit 75,071 61,846 Other operating income 6 23,927 12,810 Selling expenses 7,8,9,11 –26,339 –26,909 Administrative expenses 7,8,9,11 –39,784 –21,108 Non-recurring items 15 — –20,875 Other operating expenses 6 –4,641 –953 EBIT 28,233 4,811 Interest income and similar profit items 12 7,120 18,729 Interest expense and similar loss items 13 –7,902 –16,388 Profit after financial items 27,451 7,153 Appropriations 29 –5,948 –2,390 Profit before tax 21,503 4,763 Tax on profit for the year 14 –4,514 –1,117 NET PROFIT FOR THE YEAR 16,988 3,646 Income statement PARENT COMPANY
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| 43 Annual Report 2025 Balance sheet PARENT COMPANY KSEK NOTE Dec 31, 2025 Dec 31, 2024 ASSETS Non-current assets Intangible assets 19 41,044 43,015 Tangible assets 21 4,805 3,409 Participations in Group companies 23 638,154 532,937 Financial assets 638,154 532,937 Total non-current assets 684,004 579,361 Current assets Inventory 24 56,292 51,767 Accounts receivable 25 14,886 20,505 Receivables from Group companies 10 48,754 88,702 Tax assets 14 — 2,958 Other receivables 2,380 440 Prepaid expenses and accrued income 26 3,626 3,140 Cash and cash equivalents 27 12,338 26,984 Total current assets 138,277 194,496 TOTAL ASSETS 822,281 773,857 EQUITY AND LIABILITIES Equity Restricted equity Share capital 44,927 44,927 Development expenditure fund 34,954 41,121 Restricted equity 79,881 86,048 Non-restricted equity Share premium reserve 462,493 462,493 Retained earnings 15,927 6,114 Net profit for the year 16,988 3,646 Non-restricted equity 495,408 472,253 Equity 28 575,289 558,301 Untaxed reserves 29 21,415 15,467 Liabilities Non-current liabilities Other provisions 30 26,317 38,458 Liabilities to credit institutions 31.33 55,295 5,000 Liabilities to Group companies 10, 31 — 73,046 Non-current liabilities 81,612 116,505 Current liabilities Liabilities to credit institutions 31.33 5,000 10,000 Accounts payable 12,121 11,617 Liabilities to Group companies 10 97,282 27,288 Tax liability 14 449 — Other liabilities 18,401 19,644 Accrued expenses and deferred income 32 10,710 15,036 Current liabilities 143,965 83,585 TOTAL EQUITY AND LIABILITIES 822,281 773,857
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Stille AB (publ) 44 | KSEK SHARE CAPITAL UNREG. SHARE CAPITAL DEVELOPMENT EXPENDITURE FUND SHARE PREMIUM RESERVE RETAINED EARNINGS NET PROFIT FOR THE YEAR TOTAL EQUITY Opening balance 44,927 — 41,121 462,492 6,114 3,646 558,300 Appropriation according to AGM decision: — — — — 3,646 –3,646 — Transfers to/ from development expenditure fund — — –6,167 — 6,167 — — Net profit for the year 16,988 16,988 CLOSING BALANCE 44,927 — 34,954 462,492 15,927 16,988 575,289 PARENT COMPANY KSEK SHARE CAPITAL UNREG. SHARE CAPITAL DEVELOPMENT EXPENDITURE FUND SHARE PREMIUM RESERVE RETAINED EARNINGS NET PROFIT FOR THE YEAR TOTAL EQUITY Opening balance 25,067 19,860 56,230 462,492 –18,747 9,752 554,655 Appropriation according to AGM decision: — — — — 9,752 — — Transfers to/from devel- opment expenditure fund — — –15,109 — 15,108 — — Registration of new share issue 19,860 –19,860 — — — — — Net profit for the year — — — — — 3,646 3,646 CLOSING BALANCE 44,927 — 41,121 462,492 6,114 3,646 558,300 Statement of changes in equity PARENT COMPANY
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| 45 Annual Report 2025 KSEK NOTE 2025 2024 Operating activities EBIT 28,234 4,811 Adjustment for non-cash items 34 11,178 28,474 Interest received 3,515 4,776 Interest paid –5,953 –4,046 Tax paid –2,942 –3 Cash flow from operating activities before change in working capital 34,031 34,012 Changes in working capital Change in inventory –4,524 –6,876 Change in operating receivables 44,678 –49,489 Change in operating liabilities –20,058 –1,413 Changes in working capital 20,096 –57,778 Cash flow from operating activities 54,127 –23,766 Investing activities Acquisition of intangible assets 19 –7,369 –8,036 Acquisition of tangible assets 21 –2,494 –1,352 Investments in/divestments of other financial assets 15 — — Investments in subsidiaries –105,217 –356,384 Cash flow from investing activities –115,080 –365,772 Financing activities Dividend to shareholders — — New share issue, net — 209,219 Loans raised 31 59,218 — Repayment of debt 31 –12,910 –10,000 Cash flow from financing activities 46,308 199,219 Cash flow for the year –14,644 –190,319 Cash and cash equivalents at start of year 26,984 217,303 Cash and cash equivalents at end of year 27 12,338 26,984 Cash flow statement PARENT COMPANY
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Stille AB (publ) 46 | Notes Note 1 | General information 48 Note 2 | Accounting policies 48 Note 3 | Key assessments in applying the Group’s accounting policies 54 Note 4 | Risks and risk management 54 Note 5 | Operating segments 57 Note 6 | Other operating income and expenses 58 Note 7 | Operating expenses by nature 59 Note 8 | Auditor’s remuneration 59 Note 9 | Personnel, salaries, other remuneration and social security contributions 60 Note 10 | Related-party transactions 63 Note 11 | Amortiz ation/depreciation and impairment of intangible and tangible assets 64 Note 12 | Financial income 64 Note 13 | Financial expenses 64 Note 14 | Income tax 65 Note 15 | Acquisition of Fehling Instruments 67 Note 16 | Goodwill 68 Note 17 | Brands 69 Note 18 | Customer relationships 69 Note 19 | Other intangible assets 69 Note 20 | Land and buildings 70 Note 21 | Tangible assets 71 Note 22 | Right-of-use assets 72
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| 47 Annual Report 2025 Note 23 | Participations in Group companies 72 Note 24 | Inventory 72 Note 25 | Accounts receivable 73 Note 26 | Prepaid expenses and accrued income 74 Note 27 | Cash and cash equivalents 74 Note 28 | Equity 74 Note 29 | Untaxed reserves 74 Note 30 | Provisions 75 Note 31 | Liabilities relat ed to right-of-use assets and borrowing from credit institutions 75 Note 32 | Accrued expenses and deferred income 78 Note 33 | Pledged assets 79 Note 34 | Adjustment for non-cash items 79 Note 35 | Significant events after the balance sheet date 79 Note 36 | Dividend 79
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Stille AB (publ) 48 | NOTE 1 | General information The Annual Report and consolidated financial statements for Stille AB for the financial year ended on December 31, 2025, were approved by the Board of Directors and CEO for publication on April 2, 2026, and will be presented to the AGM on May 7, 2026, for adoption. The Parent Company is a Swedish limited liability company (publ), with its registered office in Eskilstuna, Sweden, corporate registration number 556249-4848 and address Ekbacken 11, 644 30 Torshälla, Sweden. NOTE 2 | Accounting policies Basis of preparation of financial statements The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS), as adopted by the EU, and Recom- mendation RFR 1, Supplementary Accounting Rules for Corporate Groups. The Parent Company applies the same accounting policies as the Group, with the exceptions and additions specified in Recommendation RFR 2, Account- ing for Legal Entities, issued by the Swedish Financial Reporting Board. This means that IFRS is applied with the exceptions set out below under Parent Company account- ing policies. The consolidated financial statements have been prepared using the cost method. The areas involving a higher degree of complex assessments, or those where assumptions and estimates are significant for the consolidated financial statements, are described in more detail in Note 3. The principal accounting policies applied in the prepara- tion of these consolidated financial statements are set out below. New and revised standards to be applied by the Group None of the new or revised standards that became effec- tive in 2025 have had a material impact on the Group’s earnings or financial position. None of the standards, amendments or interpretations of existing standards that become effective in 2026 are ex- pected to have a material impact on the Group’s earnings or financial position. Foreign currency translation Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity op- erates (“functional currency”). The consolidated financial statements are prepared in SEK, which is the Parent Com- pany’s functional currency and presentation currency. Transactions and balances Exchange differences relating to operating assets and liabilities are recognized in operating profit, while exchange differences relating to financial assets and liabilities are recognized in other financial income and expenses. Translation of Group companies. All foreign subsidiaries are translated into SEK using the current rate method. This means that the assets and liabil- ities of the foreign subsidiaries are translated at the closing rate, while all income statement items are translated at the respective monthly average rate. Translation differences are recognized in the consolidated statement of compre- hensive income. IFRS 3 Business combinations Classification of acquisitions Under IFRS 3, acquisitions of companies are classified as either business combinations or asset acquisitions. An individual assessment is made for each acquisition. When acquiring operations, an assessment is made of how to account for the acquisition based on the following criteria: the presence of employees and the complexity of internal processes. Furthermore, the number of activities and the existence of contracts with various degrees of complexity are taken into account. A high incidence of these criteria means that the acquisition is classified as a business com- bination, and a low incidence as an asset acquisition. Stille AB’s assessment for all completed acquisitions meant that the transactions have been classified as business combi- nations. Business combinations In business combinations where the consideration trans- ferred exceeds the fair value of net assets acquired and the liabilities assumed that are recognized separately, the difference is recognized as goodwill. If the difference is negative, the resulting gain is classified as a bargain purchase and recognized directly in profit or loss. In the case of an acquisition, full deferred tax is payable on the temporary differences between the fair value and the tax base of the asset.
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| 49 Annual Report 2025 Consolidated financial statements The consolidated financial statements include the Parent Company, Stille AB, and all companies and operations in which the Parent Company, directly or indirectly, has a controlling influence. The consolidated financial state- ments have been prepared using the acquisition method. The Group has a controlling influence in an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. For Stille’s subsidiaries, refer to Note 23 Participations in Group companies. Elimination of intra-Group transactions Intra-Group transactions and balance-sheet items, as well as unrealized gains and losses on intra-Group transac- tions, are eliminated in their entirety. Acquisition method Characterized by the recognition of assets acquired, lia- bilities assumed and contingent liabilities at market value, taking deferred tax into account at the acquisition date. Acquired intangible assets are amortized over their esti- mated useful lives, except for goodwill and brands, which are instead tested annually for impairment. Brands with an indefinite useful life are not subject to amortization but rather tested for impairment when there is an indication of impairment. The cost of an acquisition comprises the fair value of the assets transferred as consideration, equity instruments, and liabilities incurred or assumed as of the acquisition date. Acquisition costs are expensed as they arise. Format of the income statement The income statement is presented by function. Classification in the balance sheet Current assets include, in addition to cash and cash equiv- alents, all assets that are expected to be realized, sold or consumed within 12 months, or are held primarily for the purpose of trading. All other assets are recognized as non-current assets. All liabilities that are due to be settled within 12 months or that are operating liabilities are classified in the balance sheet as current. All other liabilities are classified as non-current. Segment reporting Operating segments are reported in accordance with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been iden- tified as the CEO of the Parent Company Stille AB. The segments are Surgical Instruments and Surgical Tables, which are described in more detail in Note 5. Revenue recognition Revenue is measured at the fair value of the consideration received or receivable for goods sold. The Group recognizes revenue when a performance ob- ligation has been satisfied. Substantially all of the Group’s revenue relates to performance obligations that are satisfied at a point in time. The Group develops, manu- factures and distributes proprietary surgical instruments and surgical tables. A performance obligation with respect to the sale of goods is satisfied and revenue is recognized when the significant risks and rewards of ownership of the goods are transferred to the customer, normally when the customer takes possession of the goods. Normal sales are derived from the sale of goods at a fixed price. A small proportion of revenue relates to services invoiced at a fixed price. No financing component is deemed to exist as sales are made with a credit period of 30–60 days. Stille’s key markets are the US, Sweden, Germany, the UK and Switzerland. The Group’s customer groups are hospi- tals, independent healthcare clinics specializing in aesthetic and reconstructive plastic surgery, and outpatient surgery units. Agreements are signed with foreign distributors which then resell the Group’s goods, but also directly with an end user. In the Swedish market, the Group sells directly to end customers. The categories that Stille uses to break down revenue are those described in the segment reporting presented in Note 5 – Surgical Instruments and Surgical Tables. Com- bined experience is used to assess and reserve for returns. Interest income is recognized using the effective interest method.
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Stille AB (publ) 50 | Employee benefits Short-term benefits Short-term employee benefits, such as salaries, vacation pay and bonuses, are employee benefits that fall due within 12 months of the balance sheet date in the year in which the employee earned the benefit. Short- term benefits are measured at the undiscounted amount that the Group expects to pay as a result of the unexer- cised right. Pension obligations Pension plans are funded by payments to insurance companies or trustee-administered funds, with payments determined by periodic actuarial calculations. The Group mainly has defined-contribution pension plans. One of the Group’s plans is a defined-benefit pension plan – Alecta’s ITP plan. However, Alecta has not been able to provide enough information to enable reporting as a defined-ben- efit plan, which is why the ITP plan is reported as a de- fined-contribution plan. Once these contributions have been paid, the Group has no other payment obligations. The contributions are recognized as employee benefit expenses when they fall due. Prepaid contributions are recognized as an asset to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund. Termination benefits A provision is recognized in connection with termination of employment only when the entity is demonstrably committed to either terminate the employment before the normal retirement date or when benefits are offered to encourage employees to leave service voluntarily. If the company terminates an employment, a detailed formal plan must be drawn up, including the location, function, and approximate number of employees whose services are to be terminated as well as remuneration for each employ- ment category or position, and the time at which the plan will be implemented. Presentation of government grants Government grants are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants are recognized in other revenue. Income tax Income tax includes current tax and deferred tax. Income tax is recognized in profit or loss except when the underly- ing transaction is recognized directly in equity, in which case the associated tax effect is also recognized directly in equity. Current tax Current tax is the amount of income tax payable for the current financial year in respect of the taxable profit for the year and the unrecognized portion of income tax for the previous financial year. Current tax is measured at the amount expected to be paid using the rates/laws that have been enacted or substantively enacted on the balance sheet date. Deferred tax Deferred tax is recognized for temporary differences arising between the tax base and the carrying amount of assets and liabilities. Deferred tax assets are recognized to the extent it is probable that the amounts can be realized against future taxable profit. Intangible assets All intangible assets with a finite useful life, including capital- ized internally developed software, are measured based on the cost, whereupon capitalized expenditures are amortized on a straight-line basis over their estimated useful life. Use- ful lives are reviewed on each balance sheet date. Addition- ally, an impairment test is conducted once a year, or if there are indications of a decrease in the value of the intangible asset. Capitalized development projects that are not ready for their intended use are tested for impairment once a year. Goodwill Goodwill represents the amount by which the cost of an acquisition exceeds the fair value of the Group’s share of the identifiable assets of the acquired subsidiary on the date of acquisition. Goodwill represents future economic benefits that arise in conjunction with a business combination but are not identi- fied individually and recognized separately. Goodwill that is recognized separately is tested annually for impairment and is recognized at cost less accumulated impairment including translation adjustment. Impairment of goodwill is never reversed. Brands Brands that meet the conditions for separate disclosure in a business combination are recognized as intangible assets, initially at fair value. The brand attributable to the acquisition of S&T has an indefinite useful life that is tested annually for impairment.
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| 51 Annual Report 2025 Customer relationships Customer relationships that meet the conditions for sepa- rate disclosure in a business combination are recognized as intangible assets, initially at fair value. Customer relation- ships have a finite useful life and are therefore measured at cost and amortized on a straight-line basis over their estimated useful life. Customer relationships attributable to acquisitions have an estimated life of 10–20 years. Software Acquired software licenses are capitalized on the basis of the costs incurred in acquiring and implementing the soft- ware. These costs are amortized over the estimated useful life, which is three to five years. Patents and similar rights Patents, distribution rights and other rights are recognized at cost less any accumulated amortization only when they are considered to meet the definition of an asset. They are amortized over their estimated useful life on a straight- line basis, over an amortization period of three to ten years. Capitalization of development costs and similar Costs for the research phase of a project to develop new products are expensed in the period in which they arise. Costs that are directly attributable to the development phase of a project are recognized as an intangible asset provided they meet the following requirements: • It is technically feasible to complete the asset so that it will be available for use or sale. • The Group intends to complete the asset and use or sell it. • The Group has the ability to use or sell the asset. • It is probable that the asset will generate future economic benefits. • There are resources to complete the asset for use or sale. • The development costs can be measured reliably. Development costs that do not meet these criteria for capitalization are expensed as they arise. Capitalized costs include the costs incurred to produce the asset. Directly attributable costs include the costs of employee benefits arising from the development of the asset, together with an appropriate share of indirect costs. Capitalized development costs are amortized over five to eight years. Amortization commences when the developed product is commercialized. Useful lives The following useful lives are applied: • Brands indefinite • Customer relationships 10–20 years • Software 3–5 years • Patents and similar rights 3–10 years • Capitalized development costs 5–8 years T angible assets Tangible assets are recognized at cost less accumulated depreciation according to plan and any impairment. Depreciation is based on the cost of non-current assets and allocated over their estimated useful lives. Subse- quent costs are included in the asset’s carrying amount, or recognized as a separate asset, as appropriate. The subsequent costs are only included in the asset’s carrying amount when it is probable that future economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. All other repairs and maintenance are recognized as a cost as they arise. In the year of investment, machinery and equipment are depreciated from their placed-in-service date. At each balance sheet date, an assessment is made as to whether the original estimated useful life can still be considered valid. If circumstances change, the useful life also changes. At the balance sheet date, the company did not consider it necessary to change the useful lives of its assets. Land Land is measured at the Group’s cost. The land is tested for impairment as soon as market factors indicate a substan- tial negative change. Impairment is recognized directly against earnings to the extent that the fair value has decreased. Any potential reversal of previous impairment is recognized as an increase in value directly against earnings. Since no finite useful life can be determined for land, the carrying amounts are not depreciated. Buildings Buildings are initially recognized at cost, and subsequently at cost less accumulated depreciation and impairment. The cost of the assets is divided into material components and each component is depreciated separately over its estimated useful life, known as the component deprecia- tion approach.
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Stille AB (publ) 52 | Leases The Group has leases (right-of-use agreements) for the following types of assets: • Premises, in which its activities are carried out • Company cars • Machinery Otherwise, the existence of leases is limited to low-value or short-term leases. These are not recognized as an asset or a liability in the balance sheet. Leases for the Group’s premises generally run for a period of 36–120 months with an option to extend for 36–60 months. The extension period is not normally taken into account. Leases for company cars normally run for a peri- od of 36 months. A right-of-use asset is recognized as an asset with a corresponding liability from the date the leased asset is available to the Group. A lease payment is divided between a repayment of debt and an interest payment. The interest payment for each period is estimated using the annuity method. The right-of-use asset is depreciated according to plan over the lease term. Assets and liabilities related to leases are initially measured at fair value. The lease liability includes the present value of the follow- ing payments: • Current fixed payments • Variable fees based on an index or a price • Call option if it is reasonably certain that this option will be exercised • Amounts expected to be paid under a residual value guaran- tee contract Future payments are discounted to their present value using the interest rate implicit in the lease or, if this rate cannot be readily determined, the Group’s incremental borrowing rate for a similar asset with similar collateral. For current right-of-use assets, the discount rate used for future cash flows is 2.54–6.87 percent. Right-of-use assets are measured at cost and include the following: • The initial measurement of the lease liability • Lease payments made on or before the start date of the lease, such as the first increased rent • Direct costs and restoration costs Right-of-use assets relating to rents for premises are depreciated over the expected term of the lease, while right-of-use assets relating to vehicles are depreciated over their useful lives. Payments related to short-term or low-value leases are expensed on an ongoing basis in profit or loss. A short-term lease has a lease term of 12 months or less. Low-value leases are assessed by management as leases where the value of a lease asset at the beginning of the lease term is less than SEK 50,000. Useful lives The following depreciation periods have been used: • Leasehold improvements 3–10 years • Capitalized development costs 5–8 years • Machinery and equipment 3–10 years • Production tools 5–8 years • Right-of-use assets 3–10 years Financial instruments Financial instruments recognized in the balance sheet include assets such as cash and cash equivalents and accounts receivable, and liabilities such as accounts pay- able and loan liabilities. Financial instruments are initially recognized at fair value plus transaction costs, except for the categories of financial assets or liabilities measured at fair value through profit or loss. The accounting treatment subsequently differs depending on the classification of the financial instruments as described below. Financial assets measured at amortized cost Assets held in order to collect their contractual cash flows, where those cash flows represent solely payments of prin- cipal and interest, are measured at amortized cost. The carrying amount of these assets is adjusted for any expected credit losses recognized (refer to impairment below). Interest income from these financial assets is rec- ognized using the effective interest method and included in financial income. The Group’s financial assets measured to amortized cost include accounts receivable, other re- ceivables, accrued income, and cash and cash equivalents. Cash and cash equivalents Cash and cash equivalents include cash, bank balances and other short-term investments with a maturity of three months or less.
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| 53 Annual Report 2025 Other financial liabilities Non-current borrowing, accounts payable, other current liabilities and accrued expenses that are financial instru- ments are classified as other financial liabilities. Liabilities in the category of other financial liabilities are initially recognized at fair value and subsequently at amor- tized cost using the effective interest method. Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the repayment amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recog- nized as transaction costs for the borrowings to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is recognized when the facility is drawn down. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is recognized as an advance payment for financial services and allocated over the period of the facility to which it relates. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Impairment of financial assets measured at amortized cost For accounts receivable, the Group applies the simplified approach to the provision for credit losses, meaning that the provision must correspond to the expected loss over the entire duration of the account receivable. To measure the expected credit losses, accounts receivable have been classified on the basis of distributed credit risk character- istics and days past due. Stille also uses forward-looking variables for expected credit losses. Expected credit losses are recognized in the consolidated income statement under selling expenses. Inventory Inventory is measured using the lower of cost and net realizable value rule. Cost includes all expenses attributable to the production process and an appropriate proportion of the related manufacturing overheads, based on normal capacity. Cost is calculated using the first-in, first-out (FIFO) method. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs nec- essary to make the sale directly attributable to the sales transaction. Deductions were made for obsolescence. In order to determine the value of the obsolescence, the stock is reviewed in connection with inventory and, in addition, on- going reviews are carried out to make the best assessment of what the value of the obsolescence should be. Receivables and liabilities in foreign currency Receivables and liabilities in foreign currency are translat- ed at the closing rate. Exchange-rate gains and losses on operating assets and liabilities are recognized in operating profit or loss. Provisions Provisions for product warranties, legal proceedings, onerous contracts or other claims are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. The date or amount of the outflow may still be uncertain. A restructuring provision is recognized only when there is an agreed and detailed formal plan for the restructur- ing, or the main features of the plan have at least been announced to those affected. Provisions are not recognized for costs associated with future operations. Provisions are initially measured at the best estimate of the amount required to settle the present obligation, based on the most reliable information avail- able on the balance sheet date. Provisions are discounted to their present value where the time value of money is material. Any reimbursement that the Group is virtually certain to receive from an external party in respect of the obligation is recognized as a separate asset. However, this asset cannot exceed the amount of the related provision. The provision should only be used for the purpose for which it was originally recognized. The provision is reviewed at each balance sheet date. Adjustments are recognized in profit or loss. Cash flow statement The cash flow statement was prepared using the indirect method. The recognized cash flow only includes trans- actions that result in cash receipts or cash payments. Cash and cash equivalents are cash and bank balances with maturities of less than three months that present an
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Stille AB (publ) 54 | insignificant risk of changes in value. The Group does not hold any short-term investments, only bank balances with no fixed term. Parent Company accounting policies The accounting policies of the Parent Company are in all material respects consistent with the consolidated financial statements. The Parent Company’s accounts have been prepared in accordance with RFR 2, Accounting for Legal Entities, and the Swedish Annual Accounts Act. RFR 2 sets out exemptions and additions to the standards issued by the International Accounting Standards Board (IASB) and the statements issued by the IFRS Interpretations Com- mittee (IFRIC). The exemptions and additions shall be applied from the date on which the legal entity applies the specified standard or statement in its consolidated financial statements. The Parent Company does not apply IFRS 16 Leases in accordance with the exemption in RFR 2. The Parent Company does not apply IFRS 9 in legal entities in accordance with the exemption rules in RFR 2. The Parent Company uses the formats specified in the Swedish Annual Accounts Act, which means that a differ- ent presentation of equity is applied. Shares in subsidiaries are measured at amortized cost less impairment, if any. When there is an indication that shares and participations in subsidiaries have decreased in value, the recoverable amount is calculated. If this is lower than the carrying amount, impairment is recognized. Impair- ment is recognized under profit/loss from participations in Group companies. The cost of participations in subsidiaries includes transaction costs. Amounts allocated as untaxed reserves constitute taxable temporary differences. Due to the relationship between accounting and taxation, a legal entity recognizes the deferred tax liability on untaxed reserves as part of the untaxed reserves. The appropriations in the income state- ment are also recognized inclusive of deferred taxes. NOTE 3 | Key assessments in applying the Group’s accounting policies The Group makes estimates and assumptions about the future. The preparation of financial statements requires the use of accounting estimates which, by definition, will sel- dom equal the actual results. The estimates and assump- tions posing a significant risk of material adjustment to the carrying amount of assets and liabilities in the upcoming financial year are outlined below. Recognition of inventory Inventory is measured using the lower of cost and net re- alizable value rule. When calculating net realizable value, an assessment is made of discontinued items, surplus items, damaged goods, slow-moving goods, etc. Impairment testing of goodwill and brands The Group tests whether its goodwill and brands have suf- fered any impairment on an annual basis. The recoverable amounts of cash-generating units have been determined by calculating value-in-use. Estimates must be made for these calculations. These are defined in Note 16. The bud- get for the coming year is used as a basis for the test. NOTE 4 | Risks and risk management Being exposed to risks to a lesser or greater extent is part of doing business. Stille’s risk management consists of identifying, measuring and preventing these risks from materializing, while constantly making improvements to reduce potential risks. Risk prevention is Stille’s main focus – preventing a poten- tial risk from developing into damage and/or loss. In cases where the company does not fully succeed in doing this, it is important to mitigate the effects of damage that has already occurred. The risks that Stille may be exposed to are operational, financial and legal risks, but reputational risk is also a threat to the reputation of our business. Nor are we immune to the risk of being affected by natural disasters, pandemics, acts of terrorism and other types of conflict.
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| 55 Annual Report 2025 Business risks Demand for Stille’s products is influenced by changes in customers’ investment plans, and not even the medical technology sector has remained completely unaffected by financial crises and, more recently, pandemics. Prices for medtech products on the world market are largely con- trolled by large international companies trading mainly in the world’s major currencies. USD and EUR exchange rates therefore affect pricing and competitiveness. In the wake of the pandemic and, most recently, wars in our neighbor- ing countries, supply and component shortage risks have increased. Active efforts to identify and secure critical components reduce risk. Other risks, such as market risks, suppliers, technological developments, key-person de- pendency, cybersecurity threats and business ethics risks, are continuously analyzed. Where necessary, measures are taken to reduce the Group’s risk exposure. Regulatory and legal risks The company’s products are sold to many markets, which sometimes have different requirements. Regulatory chang- es in large key markets mean that the company must adapt itself and its products to new conditions in order to sell. Strategic risks These risks could arise if the company’s strategy is incor- rect, including in relation to new products, new markets and new sales channels. To minimize risk when developing new products, the company consults with leading ex- perts in the field. In many cases, the company has very long-lasting relationships with distributors that know their markets well. Stille is now present in all major markets. Product risk This risk relates to the costs the Group may incur if a product it has supplied causes harm to people or property. Necessary product liability insurance has been taken out, and procedures to eliminate the risk of harm are in place and being developed. Currency risk Currency risk refers to the risk that adverse movements in exchange rates may have a negative impact on the Group’s earnings and financial position. The Group is exposed to currency risk through current business transactions in various currencies, i.e. transaction exposure. In addition, the Group is affected by exchange-rate effects when the results and net assets of foreign subsidiaries in foreign cur- rencies are translated into SEK, i.e. translation exposure. In October 2022, the Parent Company decided to hedge its internal currency flows of USD, which means that the Parent Company has locked its exchange rate on future anticipated USD flows to its US subsidiary. This transaction means that for 38 months starting in November 2022, the company will never exchange USD for less than SEK 10.55 or more than SEK 11.70. In May 2023, the Parent Company decided to hedge its net currency flows of EUR, which means that the Parent Company has locked its exchange rate on future anticipat- ed EUR flows. This transaction means that for 31 months starting in June 2023, the company will never exchange EUR for less than 11.19 or more than 11.90 (for 2023), 12.25 (for 2024) or 12.50 (for 2025). Transaction exposure Transaction exposure arises when a company has cash flows in foreign currency. Exchange-rate fluctuations affect cash flows in foreign currencies, which could have a negative effect on the Group’s profitability. The Group’s subsidiaries mainly operate in their local markets with revenues and expenses in local currency, which reduces transaction exposure. The transaction exposure arises mainly in EUR, CHF, USD and GBP. The company mitigates the effects of exchange-rate fluctuations through its pricing strategy. Translation exposure Exchange-rate fluctuations have an impact on the Group’s earnings through the translation of foreign subsidiaries’ earnings to SEK. Effects mainly relate to the currencies EUR, CHF, USD and GBP. Net assets in foreign subsidiaries, when consolidated into the Group’s presentation currency (SEK), give rise to a translation difference that affects the Group’s equity. Liquidity, interest rate and financing risk Liquidity risk is the risk that Stille will incur increased costs due to a lack of liquidity. The aim of the Group’s capital structure is to safeguard the Group’s ability to continue as a going concern, so that it can continue to provide returns for its shareholders and maintain an optimal capital struc- ture to minimize its cost of capital. Interest rate risk refers to the risk that changes in market rates will have a negative impact on the Group’s net in- terest income. The speed of the impact of an interest rate
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Stille AB (publ) 56 | change on net interest income depends on the duration of the loans. Stille has variable rate loans and a 1 percentage point increase in interest rates would lead to a decrease of KSEK 530 in profit before tax. Stille’s business is partially seasonal, which has an impact on cash flow. Cash flow is generally weak at the beginning of the year and after the summer. The Group had no problems meeting any payments during the year. At December 31, 2025, there was a liability of KSEK 70,772 (25,957) to credit institutions. At year-end, unutilized credit amounted to KSEK 50,000 (15,000). Stille’s activities are financed by equity and externally pro- vided capital. Financing and liquidity risk refers to the risk that costs will increase and that the refinancing of loans will be difficult or costly, and that payment obligations cannot be met due to insufficient liquidity. Stille’s direct financing and liquidity risk is considered low due to an eq- uity/assets ratio of 67.2 percent and stable liquidity. Debt/equity ratio G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Liabilities to credit institutions 70,772 25,957 Other non-current liabilities — — Liabilities related to right- of-use assets 52,491 37,132 Less: cash and cash equivalents –118,660 –158,485 Net debt 4,603 –95,396 Equity 708,712 699,405 Total capital 713,315 604,009 DEBT/EQUITY RATIO 1% –16% Financial assets and liabilities per measurement category BALANCE SHEET ITEMS, KSEK FAIR VALUE THROUGH PROFIT OR LOSS AMORTIZED COST TOTAL CARRYING AMOUNT Dec 31, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Financial assets Accounts receivable — — 87,972 76,225 87,972 76,225 Cash and cash equivalents — — 118,660 158,485 118,660 158,485 Total — — 206,632 234,710 206,632 234,710 Financial liabilities Loan liabilities — — 70,772 25,957 70,772 25,957 Accounts payable — — 23,871 16,821 23,871 16,821 Contingent consideration 24,281 36,519 — — 24,281 36,519 Total 24,281 36,519 94,643 42,778 118,924 79,297
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| 57 Annual Report 2025 Information about financial instruments measured at fair value on the balance sheet The following shows how financial instruments are mea- sured at fair value in the balance sheet. The fair value measurements are categorized into a three-level hierarchy: • Level 1: Fair value is based on prices quoted in active markets for identical instruments. • Level 2: Fair value is based on either directly (such as prices) or indirectly (derived from prices) observable market data that is not included in Level 1. • Level 3: Fair value is based on inputs that are not observable in the market. All of Stille’s financial instruments that are measured at fair value are included in Level 2, except for contingent consideration, which is included in Level 3. Fair value measurements The following summarizes the methods and assumptions that are primarily used to determine the fair value of the financial instruments presented in the table below: The fair value of the contingent consideration arrangement has been calculated using the weighted average cost of capital approach. All valuation techniques used are accepted by the market and account for all parameters that the market would take into account in pricing. The techniques are reg- ularly reviewed to ensure their reliability. The assumptions applied are monitored against actual outcomes to identify any need for adjustments to valuations and forecasting tools. For cash and cash equivalents, receivables and lia- bilities with variable interest rates, and current receivables and liabilities (such as accounts receivable and accounts payable), the fair value is considered equal to the carrying amount. NOTE 5 | Operating segments The CEO and management assess the operations and make strategic decisions for each operating segment. The Group’s operating segments, Surgical Instruments and Surgical Tables, are presented below. In the Surgical Instruments business unit, the Group offers a broad portfolio of surgical instruments in the premium segment for open surgery. The instruments are main- ly marketed under the Group’s four proprietary brands: STILLE, S&T, Fehling and Surgical Holdings. Surgical Holdings, which was acquired in July, is reported under the Surgical Instruments segment. The Surgical Tables business unit offers procedure-specific special tables designed for use with C-arms during mini- mally invasive procedures where high precision and image quality are required. The Surgical Tables business unit has two product groups: the imagiQ and Medstone series. G R O U P, K S E K 2025 2024 Surgical Instruments Net sales 428,693 432,264 EBIT before non-recurring items 71,722 97,380 EBIT before non-recurring items, % 16.7 22.5 Surgical Tables Net sales 138,936 137,685 EBIT before non-recurring items 8,616 17,536 EBIT before non-recurring items, % 6.2 12.7 Total Net sales 567,629 569,950 EBIT before non-recurring items 80,338 114,916 EBIT before non-recurring items, % 14.2 20.2 Non-recurring items –7,096 –20,384 Items affecting comparability — –24,082 EBIT 73,242 70,450 EBIT margin, % 12.9 12.4 In each of the business units, Surgical Tables and Surgical Instruments, a single customer accounted for more than 10 percent of each operating segment’s sales in 2025. In Surgical Instruments, the customer also accounted
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Stille AB (publ) 58 | for more than 10 percent of the Group’s total sales. The geographic markets have changed compared with previous years to better reflect their materiality. Revenue per geographic market G R O U P, K S E K 2025 2024 Europe 245,582 253,812 of which Sweden 38,443 50,350 of which Germany 80,411 73,901 of which UK 46,120 22,311 of which Switzerland 16,363 38,365 North America 247,806 217,081 of which US 240,606 215,363 Rest of World 74,241 99,057 TOTAL 567,629 569,950 Non-current assets per geographic market G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Europe 584,715 535,423 of which Sweden 45,849 46,424 of which Germany 335,836 365,453 of which UK 82,970 0 of which Switzerland 120,060 123,546 North America 4,639 5,140 of which US 4,639 5,140 Rest of World 155 — TOTAL 589,509 540,563 NOTE 6 | Other operating income and expenses G R O U P, K S E K 2025 2024 Other operating income Exchange-rate gains on operating receivables/liabilities 2,250 1,727 Other revenue 3,404 2,727 Other operating income 5,654 4,454 Operating expenses Exchange-rate losses on operating receivables/liabilities 3,887 1,705 Other operating expenses 1,220 Other operating expenses 5,107 1,705 PARENT COMPANY, KSEK 2025 2024 Other operating income Exchange-rate gains on operating receivables/liabilities 1,409 921 Other revenue 22,518 11,889 Other operating income 23,927 12,810 Other operating expenses Exchange-rate losses on operating receivables/liabilities 1,554 953 Other operating expenses 3,088 Other operating expenses 4,641 953
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| 59 Annual Report 2025 Audit assignment refers to the review of the annual report and interim reports, the review of the current accounts and the review of the management by the Board of Directors and the CEO as well as other tasks that are incumbent on the company's auditor to perform and, in addition, advice or other assistance prompted by observa- tions made during such review or the performance of such other tasks. G R O U P, K S E K 2025 2024 Rådek KB Audit assignment 480 399 Other assignments — — Rådek KB 480 399 Mannhart & Fehr Treuhand AG Audit assignment 295 243 Other assignments 585 341 Mannhart & Fehr Treuhand AG 880 584 (J R S Audit GmbH) Audit assignment 2,103 — BakerTilly Audit assignment — 1,714 Other assignments — 2,416 Total 2,103 4,130 Buckley Watson Audit assignment 190 — Other assignments 150 — Buckley Watson 340 — AUDITOR’S REMUNERATION 3,803 5,114 PARENT COMPANY, KSEK 2025 2024 Rådek KB Audit assignment 480 399 Other assignments — — Rådek KB 480 399 AUDITOR’S REMUNERATION 480 399 NOTE 7 | Operating expenses by nature G R O U P, K S E K 2025 2024 Material costs Raw materials and consumables 178,486 197,653 Material costs 178,486 197,653 Expenses Other external costs 115,638 116,782 Employee benefit expense 169,599 144,759 Depreciation/ amortization and impairment 36,318 44,759 Expenses 321,555 306,301 OPERATING EXPENSES 500,041 503,954 PARENT COMPANY, KSEK 2025 2024 Material costs Raw materials and consumables 59,125 65,692 Material costs 59,125 65,692 Expenses Other external costs 45,613 36,667 Employee benefit expense 65,713 61,692 Depreciation and amortization 10,225 23,887 Expenses 121,551 122,247 OPERATING EXPENSES 180,675 187,938 NOTE 8 | Auditor’s remuneration Audit costs for the subsidiaries Stille Surgical Inc. and S&T Medical GmbH are included in the Parent Company’s costs. S&T AG, Fehling Instruments GmbH and Surgical Holdings use the external audit firms Mannhart & Fehr Treuhand AG, JRS Audit Gmbh (formerly Baker Tilly) and Buckley Watson. Remuneration of auditors is included in administrative expenses. Fehling Instruments Gmbh and Surgical Holdings Ltd use external audit firms.
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Stille AB (publ) 60 | Country breakdown G R O U P, K S E K 2025 2024 Board, CEO and senior executives Sweden 9,294 10,841 Switzerland, Germany and the US 14,113 11,415 Board, CEO and senior executives 23,407 22,256 Other employees Sweden 51,923 46,462 Rest of Europe 71,337 55,058 US 21,179 19,265 Rest of World 1,754 1,718 Other employees 146,192 122,503 TOTAL, GROUP 169,599 144,759 PARENT COMPANY, KSEK 2025 2024 Board, CEO and senior executives Sweden 9,294 10,841 Board, CEO and senior executives 9,294 10,841 Other employees Sweden 51,923 46,462 Europe 4,496 4,390 Other employees 56,419 50,851 TOTAL, PARENT COMPANY 65,713 61,692 Salaries and other remuneration paid to the Board of Directors, CEO and senior executives Salaries and other remuneration, as well as pension costs including special employer’s contribution, paid to the Board of Directors, CEO and other senior executives are distributed as follows: NOTE 9 | Personnel, salaries, other remuneration and social security contributions Salaries, other remuneration, social security contributions, pension costs including special employer’s contribution and oth- er employee benefit expenses comprise the amounts expensed during the year, including accrued expenses at year-end where applicable. The Group recognizes the cost of defined-contribution pensions, as well as defined-benefit pensions, as defined-contribution pensions. The definition of senior executives has been established as employees who have a direct impact on the operations and financial position of the Group or the Parent Company. Employee benefit expense G R O U P, K S E K 2025 2024 Salaries and other remuneration Board, CEO and senior executives 20,879 20,462 Other employees 105,753 85,243 Salaries and other remuneration 126,632 105,705 Pension costs incl. special employer’s contribution Board, CEO and senior executives 2,644 2,218 Other employees 6,408 4,441 Pension costs incl. special employer’s contribution 9,052 6,658 Other expenses Social security contributions 24,771 24,526 Other employee benefit expenses 9,144 7,870 Other expenses 33,915 32,396 EMPLOYEE BENEFIT EXPENSE 169,599 144,759 PARENT COMPANY, KSEK 2025 2024 Salaries and other remuneration Board, CEO and senior executives 7,905 9,543 Other employees 34,595 31,100 Salaries and other remuneration 42,500 40,643 Pension costs incl. special employer’s contribution Board, CEO and senior executives 1,726 1,600 Other employees 4,846 3,033 Pension costs incl. special em- ployer’s contribution 6,572 4,634 Other expenses Social security contributions 13,970 13,992 Other employee benefit expenses 2,671 2,424 Other expenses 16,640 16,416 EMPLOYEE BENEFIT EXPENSE 65,713 61,692
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| 61 Annual Report 2025 G R O U P, K S E K Board of Directors Lars Kvarnhem1 125 — — — 125 363 — — — 363 Jon Sigurdsson2 400 — — — 400 — — — — — Yonna Olsson3 148 — — — 148 142 — — — 142 Per Carlsson4 148 — — — 148 142 — — — 142 Victor Steien5 148 — — — 148 142 — — — 142 Jens Viebke6 148 — — — 148 97 — — — 97 Stefan Tell7 — — — — — 45 — — — 45 Thomas Anderzon8 — — — — — 45 — — — 45 Board of Directors 1,117 — — — 1,117 976 — — — 976 CEO and other senior executives Torbjörn Sköld9, CEO 1,000 — 85 233 1,318 2,283 845 161 248 3,537 Ulrik Berthelsen10, CEO 1,925 147 158 334 2,564 — — — — — Other senior executives 12,100 3,840 906 1,561 18,408 13,151 2,193 852 1,537 17,733 CEO and senior executives 15,025 3,987 1,149 2,128 22,290 15,434 3,038 1,013 1,785 21,270 TOTAL 16,142 3,987 1,149 2,128 23,007 16,410 3,038 1,013 1,785 22,246 PARENT COMPANY, KSEK Board of Directors Lars Kvarnhem1 125 — — — 125 363 — — — 363 Jon Sigurdsson2 400 — — — 400 — — — — — Yonna Olsson3 148 — — — 148 142 — — — 142 Per Carlsson4 148 — — — 148 142 — — — 142 Victor Steien5 148 — — — 148 142 — — — 142 Jens Viebke6 148 — — — 148 97 — — — 97 Stefan Tell7 — — — — — 45 — — — 45 Thomas Anderzon8 — — — — — 45 — — — 45 Board of Directors 1,117 — — — 1,117 976 — — — 976 CEO and other senior executives Torbjörn Sköld9, CEO 1,000 — 85 233 1,318 2,283 845 161 248 3,537 Ulrik Berthelsen10, CEO 1,925 147 158 334 2,564 — — — — — Other senior executives 3,087 64 322 822 4,295 3,688 1,204 386 1,040 6,318 CEO and senior executives 6,012 211 565 1,389 8,177 5,971 2,049 547 1,288 9,855 TOTAL 7,129 211 565 1,389 9,294 6,947 2,049 547 1,288 10,831 1 Chairman of the Board until M ay 6, 2025. 2 Chairman of the Board fr om May 7, 2025. 3 Board member from May 5, 2021. 4 Board member from May 5, 2023. 5 Board member from May 1, 2024. 6 Board member from May 1, 2024. 7 Board member until April 30, 2024. 8 Board member until April 30, 2024. 9 CEO until May 31, 2025. 10 CEO from May 12, 2025. Average no. of FTEs and gender breakdown in the Group BASIC SALARY/FEES PENSION COSTSOTHER BENEFITSVARIABLE REMUNERATION TOTALBASIC SALARY/FEESPENSION COSTSOTHER BENEFITSVARIABLE REMUNERATION TOTAL 20242025
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Stille AB (publ) 62 | 2025 2024 GROUP WOMEN MEN TOTAL WOMEN MEN TOTAL Employees Sweden 20 55 75 18 52 70 Germany 25 15 40 25 12 37 US 7 10 17 8 9 17 England 6 16 22 — — — Belgium — 1 1 — 1 1 Italy 1 — 1 1 — 1 France 1 — 1 1 — 1 Switzerland 7 10 17 8 8 16 UAE 2 1 3 2 — 2 India — — — — 1 1 Malaysia — — — 1 — 1 Employees 69 108 177 64 83 147 Other Consultants 1 4 5 1 4 5 Other 1 4 5 1 4 5 TOTAL 70 112 182 65 87 152 2025 2024 PARENT COMPANY WOMEN MEN TOTAL WOMEN MEN TOTAL Employees Sweden 20 55 75 18 52 70 Germany — 1 1 — 1 1 Belgium — 1 1 — 1 1 Italy 1 — 1 1 — 1 France 1 — 1 1 — 1 Employees 22 57 79 20 54 74 Other Consultants 1 2 3 1 3 4 Other 1 2 3 1 3 4 TOTAL 23 59 82 21 57 78
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| 63 Annual Report 2025 Gender breakdown of the Board of Directors, Management and senior executives 2025 2024 WOMEN MEN WOMEN MEN Board members, excluding deputies 33% 67% 33% 67% Management 0% 100% 0% 100% Senior executives incl. CEO 0% 100% 0% 100% Board of Directors The remuneration of the Board of Directors is resolved at the AGM and remains in force until the next AGM. At the AGM on May 7, 2025, it was resolved that remuneration of KSEK 600 would be paid to the Chairman of the Board and KSEK 150 to each of the Board members. CEO and other senior executives The CEO receives a basic salary, variable remuneration, a pension corresponding to 15 percent of the CEO’s gross salary, and other benefits. The variable remuneration can be a maximum of 6 times the monthly salary, subject to performance targets set by the Board. The CEO has a mutual notice period of six months. The definition of senior executives has been established as employees who have a direct impact on the operations and financial position of the Group or the Parent Company. All senior executives have a mutual notice period of three to 12 months. In addition to Management, local CEOs are also considered senior executives. NOTE 10 | Related-party transactions The Parent Company has direct control over its subsidiaries. The Parent Company’s transactions and balances with subsidiaries consist of intra-Group sales of goods and intra-Group services. Transactions with subsidiaries G R O U P, K S E K 2025 2024 Goods 148,151 62,593 Administrative expenses 15,964 11,101 Selling expenses — — Receivables from, and liabilities to, subsidiaries PARENT COMPANY, KSEK 2025 2024 Current receivables 48,754 88,702 Non-current liabilities — 73,046 Current liabilities 97,282 27,288 Current and former Board members, as well as members of Management and their respective related parties, are consid- ered related parties. In general, transactions with related parties have been conducted on terms equivalent to those carried out on an arm’s length basis. In 2024 and 2025, there were no transactions between Stille and related parties that had a material impact on the company’s position and earnings.
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Stille AB (publ) 64 | NOTE 11 | Amortization/ depreciation and impairment of intangible and tangible assets Amortization and depreciation of intangible and tangible assets is based on historical cost and estimated useful lives for various groups of assets. Residual values are consid- ered negligible and have not been taken into account when determining the depreciable/amortizable amount, except for finance leases where residual values are taken into account. G R O U P, K S E K 2025 2024 Intangible assets 19,197 19,503 Tangible assets 3,565 3,150 Right-of-use assets 10,699 4,866 Impairment of intangible assets 2,859 17,240 TOTAL 36,319 44,760 PARENT COMPANY, KSEK 2025 2024 Intangible assets 6,583 5,595 Tangible assets 783 1,052 Impairment of intangible assets 2,859 17,240 TOTAL 10,225 23,887 NOTE 12 | Financial income G R O U P, K S E K 2025 2024 Exchange differences 7,143 13,904 Other financial income 4,253 389 TOTAL 11,396 14,293 PARENT COMPANY, KSEK 2025 2024 Internal interest income 3,224 4,264 External interest income 3,897 614 Exchange differences — 13,851 TOTAL 7,120 18,729 NOTE 13 | Financial expenses G R O U P, K S E K 2025 2024 External interest expense 4,200 5,038 Exchange differences 5,058 10,535 TOTAL 9,258 15,573 PARENT COMPANY, KSEK 2025 2024 Internal interest expense 4,451 2,679 External interest expense 1,502 3,347 Exchange differences 1,949 10,362 TOTAL 7,902 16,388
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| 65 Annual Report 2025 PARENT COMPANY, KSEK 2025 2024 Current tax on profit for the year –4,514 –1,117 Change in preceding year’s tax — — Income tax –4,514 –1,117 Specification of tax on profit for the year Profit before tax 21,503 4,763 Tax according to applicable tax rate in Sweden –4,430 –981 Tax effects Non-deductible expenses –97 –147 Non-taxable income 5 10 Change in preceding year’s tax 7 — TAX ON PROFIT FOR THE YEAR –4,514 –1,117 NOTE 14 | Income tax The income statement item “Income tax” includes current and deferred income tax for Swedish and foreign Group compa- nies. The Group’s companies are subject to tax according to the current legislation in Sweden, the US, Germany, Switzer- land and the UK. In 2025, the state income tax rate in Sweden was 20.6 percent (20.6). In the US, the income tax rate was 21 percent. In Switzerland, the rate was 13.87 percent. In Germany, the rate was 27.2 percent. In the UK, the rate was 25 percent. The tax is calculated by applying a nominal rate to gross profit plus non-deductible items. In addition, any deficits from previous assessments are taken into account. In 2025, the effective tax rate for the Group was 26.1 percent (15.9). In the consolidated balance sheet, deferred tax assets amount to KSEK 5,568 (12,072), of which KSEK 4,925 (12,072) relates to the elimination of intra-Group profit-in-inventory. The tax expense recognized is broken down as follows: G R O U P, K S E K 2025 2024 Current tax on profit for the year –15,733 –18,737 Change in deferred tax assets1 –6,126 2,980 Change in deferred tax liabilities 2 2,173 5,029 Change in preceding year’s tax 6 –235 Income tax –19,680 –10,964 Specification of income tax Profit before tax 75,380 69,170 Tax according to applicable tax rate in Sweden –15,528 –14,249 Tax effects Differences in foreign tax rates incl. Group adjustments –2,018 2,549 Non-deductible expenses –97 –147 Non-taxable income 5 10 Change in preceding year’s tax 7 — Change in loss carryforwards on which no deferred tax asset has been capitalized –2,049 872 TAX ON PROFIT FOR THE YEAR –19,680 –10,964 1 Refer to the table “Deferred tax asset” 2 Refer to the table “Deferred tax liability”
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Stille AB (publ) 66 | Established tax loss carryforwards G R O U P, K S E K 2025 2024 Opening balance 9,092 7,491 Change in loss carryforwards –4,981 1,601 CLOSING BALANCE 4,111 9,092 The loss carryforward relates to Stille Surgical Inc. in the US. The loss carryforward has no time limit. From 2021 and onward, only 80 percent of the losses can be used to offset any taxable income earned in future years. None of the loss carryforward is attributable to the Parent Com- pany. Deferred tax asset GROUP INTRA-GROUP PROFIT-IN-IN - VENTORY LEASES OTHER ITEMS RECLASSIFICATION TOTAL Closing balance, 2024 12,072 429 — –429 12,501 Recognized in profit or loss –5,428 –497 –201 — –6,126 Reclassification 565 201 — 766 Currency effect –1,720 146 — — –1,574 CLOSING BALANCE, 2025 4,925 643 — — 5,568 Deferred tax liability GROUP BRANDS CUSTOMER REGISTER BUILDINGS UNTAXED RESERVES LEASES OTHER ITEMS TOTAL Closing balance, 2024 51,275 32,830 1,755 3,186 –429 816 89,433 Business combinations 2,720 5,330 — — — 3,773 11,823 Recognized in profit or loss –13,608 10,236 –31 1,225 — 4 –2,173 Reclassification — — — — 429 — 429 Currency effect –2,205 –2,769 –76 — — –122 –5,173 CLOSING BALANCE, 2025 38,182 45,626 1,648 4,411 — 4,471 94,339 The gross change in deferred taxes is broken down into the following current and non-current items: G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Deferred tax asset Expected to be settled within 12 months 4,925 12,072 Expected to be settled after 12 months 643 — Deferred tax asset 5,568 12,072 Deferred tax liability Expected to be settled within 12 months –3,454 –1,715 Expected to be settled after 12 months –90,885 –87,791 Deferred tax liability –94,339 –89,506 NET –88,771 –77,434The gross change in deferred taxes is as follows: Leases, deferred tax gross G R O U P, K S E K 2025 2024 Deferred tax asset 12,683 5,385 Deferred tax liability –12,040 –4,923 NET 643 463
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| 67 Annual Report 2025 NOTE 15 | Acquisition of Surgical Holdings On July 31, 2025, Stille concluded the acquisition of all shares in Surgical Holdings Ltd, a UK company headquar- tered in Southend-on-Sea. Surgical Holdings designs, manufactures and repairs high-quality surgical instruments and related equipment for healthcare providers and dis- tributors in the UK and internationally. Founded in 1988, the company has a strong reputation for craftsmanship, innovation and sustainable production. This acquisition, which supports the Stille Group’s continued growth, strengthens Stille’s position in the UK market and broadens the Group’s offering in surgical instrument and repair services. Surgical Holdings has been integrated into the consolidated financial statements as of the acquisition date on July 31, 2025. Acquisition analysis Information on purchase consideration, net assets acquired and goodwill is indicated in the acquisition analysis below. The goodwill is attributable to the high earnings capacity of the operations acquired. No part of recognized goodwill is expected to be tax-deductible. Acquisition-related costs Acquisition-related costs of MSEK 7.1 are included in “Transaction costs” in the income statement as well as in operating activities in the cash flow statement. Sales and earnings in the acquisition Since the acquisition, the acquired business has contrib- uted revenue of MSEK 36.8 and net profit of MSEK 1.0 to the Group. Earnings include acquisition-related amorti- zation of MSEK 0.4 related to customer relationships and technology. These amounts were calculated using the subsidiary’s earnings adjusted for differences in accounting policies between the Group and the subsidiary. PURCHASE CONSIDERATION KSEK Cash consideration 90,626 Contingent consideration 7,496 PURCHASE CONSIDERATION 98,122 FAIR VALUE OF ASSETS AND LIABILITIES ACQUIRED KSEK Assets Brands 10,919 Customer relationships 21,396 Technology 9,026 Other non-current assets 16,134 Inventory 17,842 Accounts receivable and other receivables1 10,948 Cash and cash equivalents 6,787 Non-current liabilities –7,488 Provision for deferred tax –10,335 Current liabilities –15,190 Acquired identifiable net assets 60,038 Goodwill 38,083 Acquired net assets 98,122 1 Contracted gross amounts correspond in all material respects to the fair values of acquired receivables above. Impact of the acquisition on the Group’s cash and cash equivalents KSEK Purchase consideration settled in cash –90,626 Cash and cash equivalents in subsidiaries acquired 6,787 Net outflow of cash and cash equivalents Investing activities –83,839
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Stille AB (publ) 68 | NOTE 16 | Goodwill The item “Goodwill” only exists in the Group, and relates to acquisition of the Medstone product area in the Surgical Tables segment and the acquisitions of the companies S&T, Fehling and Surgical Holdings. G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Medstone Opening cost 5,059 4,619 Exchange differences –827 440 Carrying amount 4,232 5,059 S&T Opening cost 19,015 18,709 Exchange differences –838 306 Carrying amount 18,177 19,015 Fehling Business combinations 112,703 110,768 Exchange differences –6,558 1,935 Carrying amount 106,145 112,703 Surgical Holdings Business combinations 38,083 — Exchange differences –1,557 — Carrying amount 36,526 — Total Opening cost 136,777 23,328 Business combinations 38,083 110,768 Exchange differences –9,780 2,681 CARRYING AMOUNT 165,080 136,777 Impairment testing of goodwill and other intangible assets with an indefinite useful life Impairment testing of goodwill and other intangible assets with an indefinite useful life takes place in the fourth quarter of every year, or more frequently if there is any in- dication of impairment. Goodwill is allocated to, and tested in, the Group’s cash-generating units (CGUs) identified per operating segment. In addition to goodwill, the Group also has acquired brands that are considered to have an indef- inite useful life. The useful life is considered indefinite as these are well-established brands that the Group intends to maintain and further develop. For more information about brands, refer to Notes 2 and 17. The recoverable amount of a CGU is determined based on value-in-use calculations. Cash flow forecasts are based on an assessment of the expected growth rate and devel- opment of the EBIT margin based on the budget for 2026 adopted in December, forecasts for the next four years, Management’s long-term expectations for the business and historical developments. Cash flows beyond the five- year period are extrapolated using an estimated growth rate as indicated below. The growth rate is not expected to exceed the long-term growth rate of the market in which the relevant CGU operates. Estimated values-in-use are highly sensitive to changes in key assumptions such as the growth rate, EBIT margin and relevant discount rate (weighted average cost of capital, WACC), which are used to discount the future cash flows. Key assumptions used for calculations of value-in-use are summarized as shown below. S&T MED- STONE FEHLING SURGICAL HOLDINGS Growth in the first 5 years, % 10 9 9 10 Growth in the period beyond the first 5 years, % 2 2 2 2 Gross profit margin, % 54 39 57 38 Pre-tax discount rate, % 11.4 14.8 14.2 16.2 Sensitivity analysis For all CGUs, a 2 percentage point increase in the discount rate, a 1 percentage point decrease in the assumed long- term growth rate, or a 2 percentage point decrease in the EBIT margin would not individually result in any impairment loss. Based on historical performance and Management’s estimates of the future, Stille has assessed that the above range covers reasonable possible changes in the key assumptions identified. These calculations are hypothetical and should not be taken as an indication that these factors are more or less likely to change. The sensitivity analysis should therefore be interpreted with caution. Based on the impairment tests performed, there was no indication of impairment of goodwill or other intangible assets with indefinite useful lives at December 31, 2025.
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| 69 Annual Report 2025 NOTE 17 | Brands G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Opening cost 149,467 43,893 Business combinations 10,919 102,879 Exchange-rate effect –8,503 2,695 CARRYING AMOUNT 151,884 149,467 The brands are considered to have an indefinite useful life. For impairment testing, refer to Note 16. NOTE 18 | Customer relationships G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Opening cost 187,062 35,385 Business combinations 21,396 148,239 Exchange-rate effect –11,244 3,438 Closing accumulated cost 197,214 187,062 Opening accumulated amortization –16,370 –4,423 Amortization for the year –12,322 –11,802 Exchange-rate effect 1,124 –145 Closing accumulated amortization –27,568 –16,370 CLOSING RESIDUAL VALUE ACCORDING TO PLAN 169,646 170,692 NOTE 19 | Other intangible assets Other intangible assets are mainly related to capitalized development costs and, to a lesser extent, software. Capitalized development costs predominantly relate to the Surgical Tables business unit. All capitalized costs relate to proprietary products. For 2025, the Group’s total research and development costs amounted to KSEK 0 (0). KSEK 2,730 (6,995) was capitalized in 2025. Capitalized development costs G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Opening cost 60,529 76,460 Investments for the year 2,730 6,995 Disposals –7,997 — Impairment for the year — –22,975 Exchange-rate effect — 49 Closing cost 55,262 60,529 Opening accumulated amortization –19,408 –20,231 Amortization for the year –6,133 –5,166 Impairment for the year — 5,989 Disposals 5,233 — Closing accumulated amortization –20,308 –19,408 CLOSING RESIDUAL VALUE ACCORDING TO PLAN 34,954 41,121 PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Opening cost 60,699 76,629 Investments for the year 2,730 7,045 Disposals Impairment for the year –7,997 –22,975 Closing accumulated cost 55,432 60,699 Opening accumulated amortization –19,578 –20,400 Amortization for the year –6,039 –5,166 Impairment for the year — 5,988 Disposals 5,139 — Closing accumulated amortization –20,478 –19,578 CLOSING RESIDUAL VALUE ACCORDING TO PLAN 34,954 41,121
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Stille AB (publ) 70 | Other intangible assets G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Opening cost 7,612 2,626 Business combinations 11,769 27 Investments for the year 11,461 4,980 Disposals –21 — Exchange-rate effect –766 –21 Closing accumulated cost 30,055 7,612 Opening accumulated amortization –1,725 –1,353 Business combinations –989 — Amortization for the year –742 –372 Exchange-rate effect 10 — Closing accumulated amortization –3,446 –1,725 CLOSING RESIDUAL VALUE ACCORDING TO PLAN 26,609 5,887 PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Opening cost 3,368 2,376 Investments for the year 4,639 — Reclassifications — 992 Exchange-rate effect — — Closing accumulated cost 8,007 3,368 Opening accumulated amortization –1,474 –1,146 Amortization for the year –443 –328 Disposals — — Closing accumulated amortization –1,917 –1,474 CLOSING RESIDUAL VALUE ACCORDING TO PLAN 6,090 1,894 NOTE 20 | Land and buildings G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Opening cost 29,806 29,337 Investments for the year 370 — Exchange-rate effect –1,311 469 Closing accumulated cost 28,865 29,806 Opening accumulated depreciation –1,753 –1,232 Depreciation for the year –496 –494 Exchange-rate effect 84 –27 Closing accumulated depreciation –2,165 –1,753 CLOSING RESIDUAL VALUE ACCORDING TO PLAN 26,700 28,053 When the difference in the consumption of the key com- ponents of a tangible asset is deemed material, the asset is allocated to those components. The depreciation of tangible assets is recognized as a cost so that the value of the asset is depreciated on a straight-line basis over its estimated useful life. Land is not depreciable. For the relevant depreciation periods, refer to Note 2 Accounting policies.
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| 71 Annual Report 2025 Leasehold improvements G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Opening cost 2,483 2,191 Investments for the year 9 — Business combinations — 286 Reclassification 600 — Exchange-rate effect 10 6 Closing accumulated cost 3,102 2,483 Opening accumulated depreciation –2,094 –1,869 Depreciation for the year –154 –225 Closing accumulated depreciation –2,248 –2,094 CLOSING RESIDUAL VALUE ACCORDING TO PLAN 855 388 PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Opening cost 2,191 2,191 Investments for the year 9 — Reclassification 886 — Closing accumulated cost 3,086 2,191 Opening accumulated depreciation –2,079 –1,869 Depreciation for the year –154 –210 Closing accumulated depreciation –2,233 –2,079 CLOSING RESIDUAL VALUE ACCORDING TO PLAN 853 112 Machinery and equipment G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Opening cost 25,394 19,400 Investments for the year 6,025 3,016 Reclassifications –622 296 Disposals –2,228 –766 Acquired through acquisition of subsidiaries 13,835 3,020 Exchange-rate effect –1,263 428 Closing accumulated cost 41,141 25,394 Opening accumulated depreciation –17,217 –14,466 Depreciation for the year –2,915 –2,532 Business combinations –8,700 — Reclassifications –345 –296 Disposals 1,092 172 Exchange-rate effect 728 –95 Closing accumulated depreciation –27,357 –17,217 CLOSING RESIDUAL VALUE ACCORDING TO PLAN 13,784 8,177 PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Opening cost 15,588 14,577 Investments for the year 2,515 1,352 Reclassifications –979 93 Disposals –598 –434 Closing accumulated cost 16,526 15,588 Opening accumulated depreciation –12,292 –11,437 Depreciation for the year –730 –943 Reclassifications 93 –93 Disposals 355 181 Closing accumulated depreciation –12,574 –12,292 CLOSING RESIDUAL VALUE ACCORDING TO PLAN 3,952 3,296 NOTE 21 | T angible assets
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Stille AB (publ) 72 | NOTE 22 | Right-of-use assets G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Opening cost 54,164 39,731 Expired agreements –1,587 –2,013 Cost on acquisition of subsidiaries 9,778 10,289 New agreements 31,360 5,093 Divestment –11,901 — Exchange-rate effect –1,192 1,064 Closing accumulated cost 80,622 54,164 Opening accumulated depreciation –19,017 –13,594 Expired agreements 1,139 1,837 Cost on acquisition of subsidiaries –1,192 –129 Depreciation for the year related to vehicles and premises –10,699 –6,929 Exchange-rate effect 409 –202 Closing accumulated depreciation –29,360 –19,017 CLOSING RESIDUAL VALUE ACCORDING TO PLAN 51,262 35,147 Right-of-use assets consist of finance leases for vehicles and rental agreements. In 2025, the total impact on cash flow from right-of-use assets was KSEK 10,080 (5,500). NOTE 23 | Participations in Group companies PARENT COMPANY, KSEK SHARE OF EQUITY Dec 31, 2025 Dec 31, 2024 STILLE Incentive AB 556805-6575 Solna, Sweden 100% 50 50 STILLE Surgical Inc. 164 82 79 Delaware, US 100% 13,472 13,472 S&T AG CHE-102.116.223 Neuhausen, Switzerland 100% 115,554 115,554 S&T Medical GmbH HRB 721420 Jestetten, Germany 100% 3,200 3,200 Fehling Instruments Gmbh, Karlstein, Germany — 400,661 400,661 Surgical Holdings, Essex, UK — 105,217 — Carrying amount — 638,154 532,937 2025 2024 KSEK EARNINGS EQUITY EARNINGS EQUITY STILLE Incentive AB –1.8 36 –1.2 41.5 STILLE Surgical Inc. 4,068 11,110 5,143 8,723 S&T AG 26,966 151,099 27,717 130,227 S&T Medical GmbH 342 1,008 –7 715 Fehling Instruments Gmbh 1 10,800 120,535 40,587 118,838 Surgical Holdings 1,814 29,623 — — 1 Fehling’s equity refers to consolidated equity in sub-groups. NOTE 24 | Inventory G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Raw materials inventory2 972 663 Work in progress 8,131 6,244 Components 48,605 45,015 Finished goods inventory 124,347 92,761 TOTAL 182,055 144,683 2 The raw materials inventory comprises only raw materials that are used in the manufacture of products.
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| 73 Annual Report 2025 PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Raw materials inventory 972 663 Work in progress 7,373 5,383 Components 33,022 33,090 Finished goods inventory 14,925 12,631 TOTAL 56,292 51,767 A reserve for obsolescence is included in the value of inventory. There was no significant impairment during the year. Only an insignificant portion of inventory is measured at net realizable value. NOTE 25 | Accounts receivable G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Accounts receivable 97,774 79,6421 Loss allowance –932 –1,110 Exchange rate adjustments –8,870 –2,3071 TOTAL 87,972 76,225 1 There was an error in the distribution between accounts receivable and exchange rate adjustments in 2024. This has been corrected in this year’s annual accounts, and the total remains unchanged. PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Accounts receivable 15,393 20,969 Loss allowance –347 –428 Exchange rate adjustments –160 –35 TOTAL 14,886 20,505 Accounts receivable are amounts due from customers for goods sold or services performed in the ordinary course of business. Accounts receivable are generally due for set- tlement within 30 days and are all, therefore, classified as current assets. Accounts receivable are initially recognized at their transaction price. The Group holds the accounts receivable with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest method. Details about the Group’s impairment policies and the calculation of the loss allowance are provided in Note 2. The Group has recognized recovered bad debts of MSEK 81 (102) for the provision of receivables from customers. Accounts receivable are written off when there is no rea- sonable expectation of recovery. Changes in the bad debt provision for the year are as follows: G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Opening balance 1,110 759 Allowance/reversal for loss allowance –178 351 CLOSING BALANCE 932 1,110 PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Opening balance 428 262 Allowance/reversal for doubtful accounts –81 167 Receivables written off during the year that are irrecoverable — — CLOSING BALANCE 347 428 Accounts receivable by age G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Not due accounts receivable 59,142 58,925 Less than 3 months 26,698 17,261 More than 3 months 3,065 1,149 Loss allowance –932 –1,110 TOTAL 87,972 76,225 PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Not due accounts receivable 11,427 14,644 Less than 3 months 5,001 7,313 More than 3 months –1,195 –1,024 Loss allowance –347 –428 TOTAL 14,886 20,505
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Stille AB (publ) 74 | NOTE 26 | Prepaid expenses and accrued income The carrying amount corresponds to the fair value as pay- ment will take place in the near future. G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Prepaid insurance expenses 2,246 1,586 Prepaid rent 1,033 — Prepaid pension costs 130 150 Other items 4,073 3,600 TOTAL 7,482 5,336 PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Prepaid rent 916 850 Prepaid insurance expenses 1,106 600 Prepaid pension costs 130 150 Other items 1,474 1,540 TOTAL 3,626 3,140 NOTE 27 | Cash and cash equivalents G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Cash and bank balances 118,660 158,485 TOTAL 118,660 158,485 PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Cash and bank balances 12,338 26,984 TOTAL 12,338 26,984 NOTE 28 | Equity According to the Articles of Association for Stille AB, the share capital shall amount to at least MSEK 33 and to no more than MSEK 132. All shares – 8,985,447 with a quotient value of SEK 5 – are fully paid and entitle the holder to an equal share in the company’s assets. No shares are held by the company itself or by its subsidiaries. NOTE 29 | Untaxed reserves PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Tax allocation reserves 20,000 13,807 Excess depreciation/ amortization 1,415 1,660 TOTAL 21,415 15,467 Tax allocation reserve PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Opening balance 13,807 12,057 Provisions for the year 7,200 1,750 Reversed tax allocation reserve –1,007 — CLOSING BALANCE 20,000 13,807 Excess depreciation/amortization PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Opening balance 1,660 1,020 Provisions for the year — 640 Reversed provision –245 — CLOSING BALANCE 1,415 1,660
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| 75 Annual Report 2025 NOTE 30 | Provisions Provisions consists of contingent considerations and other provisions. Other provisions consist of warranty provisions for our products. Based on an historical outcome of warranty commitments, a reserve is then set aside for future commit- ments according to the warranty period as well as the company's commitment to service products included in the pur- chase of new instruments. The contingent consideration arrangement includes a hold-back payment to the owners that is released after certain requirements and targets have been met. PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Liabilities to credit institutions 55,295 5,000 TOTAL 55,295 5,000 Other provisions Contingent consideration TOTAL G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Opening balance 4,495 4,068 35,475 32,940 39,970 37,008 Amounts utilized –69 — –12,210 — –12,279 — Added through acquisitions — 289 — — — 289 Exchange-rate effect –49 60 32 555 –17 616 Amounts reserved 97 78 — 1,980 97 2,058 CLOSING BALANCE 4,474 4,495 23,297 35,475 27,772 39,970 PARENT COMPANY, KSEK Other provisions Contingent consideration TOTAL Dec 31, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Opening balance 2,984 2,870 35,475 32,940 38,459 35,810 Amounts utilized — — –12,210 — –12,210 — Cost on acquisition of subsidiaries — — — — — — Exchange-rate effect –61 36 32 555 –29 591 Amounts reserved 97 78 — 1,980 97 2,058 CLOSING BALANCE 3,020 2,984 23,297 35,475 26,317 38,459 NOTE 31 | Liabilities related to right-of-use assets and borrowing from credit institutions Non-current liabilities G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Liabilities related to right- of-use assets 41,837 30,983 Liabilities to credit institutions 65,772 5,000 Other liabilities — — TOTAL 107,609 35,983
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Stille AB (publ) 76 | Current liabilities G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Liabilities related to right- of-use assets 10,654 6,149 Borrowing from credit institutions 5,000 20,957 TOTAL 15,654 27,106 Overdraft granted 50,000 15,000 Utilized portion — — GROUP <1 Y EAR 1–2 YEARS 2–5 YEARS >5 YEARS TOTAL CONTRACTUAL CASH FLOWS CARRYING AMOUNT LIABILITIES 2025 Financial liabilities Accounts payable 23,871 — — — 23,871 23,871 Borrowings 18,420 13,220 45,617 — 77,257 70,772 Lease liabilities 9,692 9,195 17,562 16,042 52,491 52,491 Provision 277 984 23,280 3,477 28,018 27,771 TOTAL 52,260 23,399 86,459 19,519 181,637 174,905 2024 Financial liabilities Accounts payable 16,821 — — — 16,821 16,821 Borrowings 11,030 5,400 — — 16,430 25,957 Lease liabilities 5,310 5,030 10,258 7,007 27,605 37,132 Provision 3,451 1,107 36,523 1093 42,174 39,970 TOTAL 36,612 11,537 46,781 8,100 103,030 119,881 PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Borrowing from credit institutions 5,000 10,000 TOTAL 5,000 10,000 Overdraft granted 50,000 15,000 Utilized portion — — Stille AB’s borrowing from banks is subject to covenants, which Stille AB meets in full. These are measured quarterly on a rolling 12-month basis. The carrying amount of the Group’s non-current liabilities measured at amortized cost corresponds to their fair val- ue, in all material respects, as the interest rate is at parity with current market rates. The carrying amount of the Group’s non-current liabilities measured at amortized cost corresponds to their fair value, in all material respects, as the effect of discounting is not material. Lease liabilities are recognized at amortized cost and no fair value is assigned. In 2025, interest expense for liabilities related to right-of- use assets amounted to KSEK 1,513 (745) and cash flow was affected by KSEK 10,080 (5,500). In 2025, expensed low-value leases and leases with a term of less than 12 months amounted to KSEK 750 (796). The tables below show the current and non-current liabil- ities of the Group and the Parent Company, and which of these items affect cash flow.
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| 77 Annual Report 2025 G R O U P, K S E K Non-current liabilities to credit institutions 5,000 59,218 –7,910 — 10,957 — –1,493 65,772 Non-current liabilities to right-of-use assets 30,983 — –8,083 13,898 –1,433 7,113 –641 41,837 Current liabilities to credit institutions 20,957 — –5,000 — –10,957 — — 5,000 Current liabilities to right-of-use assets 6,149 — –2,063 3,711 1,433 1,584 –160 10,654 Financial liabilities through business combinations — — — — — — — — TOTAL 63,089 59,218 –23,056 17,609 — 8,697 –2,294 123,263 LOANS RAISEDREPAYMENT OF LOANSLOANS RAISEDOPENING BALANCE RECLASSIFICATIONSADDED THROUGH ACQUISITIONSUNREALIZED EXCHANGE-RATE EFFECTS CLOSING BALANCE CASH FLOWS NON-CASH ITEMS PARENT COMPANY, KSEK Non-current liabilities to credit institutions 5,000 59,218 –7,910 — — –1,013 55,295 Non-current liabilities to Group companies 73,046 — — — –73,046 — — Current liabilities to Group companies 27,288 — — — 73,046 –3,052 97,282 Current liabilities to credit institutions 10,000 — –5,000 — — — 5,000 TOTAL 115,334 59,218 –12,910 — — –4,065 157,577 LOANS RAISEDREPAYMENT OF LOANSLOANS RAISEDOPENING BALANCE RECLASSIFICATIONSUNREALIZED EXCHANGE-RATE EFFECTS CLOSING BALANCE CASH FLOWS NON-CASH ITEMS 2025
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Stille AB (publ) 78 | NOTE 32 | Accrued expenses and deferred income G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Accrued salaries and vacation pay 13,760 13,498 Accrued social security contributions 2,105 4,579 Other accrued expenses 15,566 15,720 TOTAL 31,431 33,797 PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Accrued salaries and vacation pay 4,920 8,759 Accrued social security contributions 1,778 4,340 Other accrued expenses 4,012 1,937 TOTAL 10,710 15,036 G R O U P, K S E K Non-current liabilities to credit institutions 15,000 — –10,000 — — — — 5,000 Non-current liabilities to right-of-use assets 23,095 — –758 2,131 –2,788 8,698 605 30,983 Current liabilities to credit institutions 20,784 — — — — — 172 20,957 Current liabilities to right-of-use assets 4,092 — –5,090 2,253 2,788 1,516 590 6,149 Financial liabilities through business combinations — — –21,970 — — 21,970 — — TOTAL 62,942 — –37,819 4,384 — 32,184 1,368 63,089 LOANS RAISEDREPAYMENT OF LOANSLOANS RAISEDOPENING BALANCE RECLASSIFICATIONSADDED THROUGH ACQUISITIONSUNREALIZED EXCHANGE-RATE EFFECTS CLOSING BALANCE CASH FLOWS NON-CASH ITEMS PARENT COMPANY, KSEK Non-current liabilities to credit institutions 15,000 — –10,000 — — — 5,000 Liabilities to Group companies 71,896 — — — — 1,150 73,046 Current liabilities to Group companies — — — 27,288 — — 27,288 Current liabilities to credit institutions 10,000 — — — — — 10,000 TOTAL 96,896 0 –10,000 27,288 — 1,150 115,334 LOANS RAISEDREPAYMENT OF LOANSLOANS RAISEDOPENING BALANCE RECLASSIFICATIONSUNREALIZED EXCHANGE-RATE EFFECTS CLOSING BALANCE CASH FLOWS NON-CASH ITEMS 2024
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| 79 Annual Report 2025 NOTE 33 | Pledged assets G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Floating charges 65,000 65,000 Property mortgages 24,576 24,576 TOTAL 89,576 89,576 PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Floating charges 65,000 65,000 TOTAL 65,000 65,000 Floating charges have been pledged as security for Stille’s commitments with Danske Bank. The Group had no utilized bank overdraft facilities at the balance sheet date in 2025 or 2024. The tables below show liabilities for which assets have been pledged. G R O U P, K S E K Dec 31, 2025 Dec 31, 2024 Non-current liabilities to credit institutions 65,772 5,000 Current liabilities to credit institutions 5,000 20,957 TOTAL 70,772 25,957 PARENT COMPANY, KSEK Dec 31, 2025 Dec 31, 2024 Non-current liabilities to credit institutions 55,295 5,000 Current liabilities to credit institutions 5,000 10,000 TOTAL 60,295 15,000 NOTE 34 | Adjustment for non-cash items G R O U P, K S E K 2025 2024 Depreciation and amortization 36,318 44,759 Exchange rate adjustment –239 806 Other items 156 –34 TOTAL 36,235 45,531 PARENT COMPANY, KSEK 2025 2024 Depreciation and amortization 10,225 23,887 Exchange rate adjustment 917 4,343 Other items 36 244 TOTAL 11,178 28,474 NOTE 35 | Significant events after the balance sheet date No significant events occurred after the balance sheet date. NOTE 36 | Proposed appropriation of profit Dividends are recognized in the Parent Company as a re- duction of unrestricted equity only at the time of payment to shareholders. Dividends are proposed by the Board in accordance with the provisions of the Swedish Companies Act, and approved by the AGM. Proposed distribution of profit The following profit is at the disposal of the AGM: PARENT COMPANY, KSEK Share premium reserve 462,492,677 Retained earnings 15,926,901 Profit reported for the year 16,988,386 Total 495,407,964 The Board’s proposed appropriation of profit Dividend — To be carried forward 495,407,964
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Stille AB (publ) 80 |
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| 81 Annual Report 2025 Corporate governance Stille AB (publ.), 556249-4848, is a Swedish limited liability company with its registered office in Eskilstuna, Sweden. The company’s Class B share is listed on Nasdaq OMX First North Growth Market. Stille AB is included in the Health Care index. Stille’s corporate governance is based on Swedish leg- islation and follows the Swedish Corporate Gover- nance Code. The purpose of corporate governance, including the risk management described in Note 4, is to facilitate sustainable, responsible, effective and prudent management of the company. Stille AB is governed by the General Meeting, the Board of Di- rectors and the CEO, in accordance with the Swedish Companies Act, the company’s Articles of Association and the terms of reference for the Board of Directors. The Articles of Association are available on Stille’s website under the heading Corporate Governance. Corporate governance is tailored to the Group’s ac- tivities and needs to support business success and profitability. Good corporate governance involves clear delegation of responsibilities and clarity towards shareholders and the market. It also involves effec- tive management and control of the Group’s activ- ities to ensure they comply with targets, legislation and regulations. Management and control of Stille is divided between shareholders at the AGM, the Board of Directors and the CEO, and is governed by legisla- tion, the company’s Articles of Association, the Nordic Main Market Rulebook for Issuers of Shares and the Swedish Corporate Governance Code. The purpose of the Swedish Corporate Governance Code is to maintain the confidence of existing and future investors and other financial market partici- pants in Stille. The Code assists the owners in both direct and indirect governance and forms part of the corporate sector’s self-regulation. Stille applies the “comply or explain” mechanism, which means that it discloses the underlying reasons and reasoning in cases where the company has deviated from the Code’s rules. Articles of Association According to Stille’s Articles of Association, the com- pany shall engage in the development and market- ing of medical devices for customers in the health- care and therapy sectors, who have high demands on functionality and performance. The Board shall have its registered office in Eskilstuna Municipali- ty, in Sweden. The AGM shall be held in Eskilstuna or Stockholm. The Articles of Association contain pro- visions regarding the number of shares, number of Board members and auditors, and the AGM. The Articles of Association are available on Stille’s website.
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Stille AB (publ) 82 | Annual General Meeting Stille’s AGM is the highest decision-making body for the company’s shareholders. Shareholders who wish to attend and exercise their voting rights at Stille’s AGM must be entered in the share register and no- tify their participation. One share entitles the hold- er to one vote at the AGM, which is the forum where shareholders can exercise their influence. Direct or indirect shareholdings in the company representing at least one-tenth of the voting rights are listed on page 31. The AGM addresses a number of key issues, such as adoption of the income statement and the balance sheet for the past year, including the appropriation of the company’s profit, discharge from liability for the Board of Directors, election of the Board mem- bers and auditor, the composition of the Nomination Committee, authorization for the Board of Directors to decide that the company shall issue new shares or purchase its own shares, and other matters in accor- dance with the Swedish Companies Act and the Arti- cles of Association. Amendments to the Articles of Association also re- quire a decision by a General Meeting. All sharehold- ers have the right to have matters dealt with at the AGM. In order for such matters to be included in the notice, the request must be made to the company at least six weeks prior to the AGM. Notice of the AGM is published no earlier than six weeks and no later than four weeks prior to the AGM. The AGM will be held in Stockholm, Sweden, on May 7, 2026, at 1:00 p.m. Nomination Committee In accordance with a decision by the AGM of Stille AB on May 7, 2025, the Nomination Committee for the 2026 AGM shall consist of three members, who shall represent the two shareholders with the high- est number of shares who are willing to be part of the Nomination Committee, and the Chairman of the Board. The Nomination Committee then appoints a chairman from among its members. The Chairman of the Nomination Committee shall be the person who represents the largest shareholder in terms of votes at the time of the formation of the Nomination Committee, unless the Nomination Committee unanimously decides to appoint some- one else. When appointing the Nomination Committee, the rules of the Swedish Corporate Governance Code shall be taken into account, including that no mem- ber of management may be a member of the Nomi- nation Committee and that Board members shall not constitute a majority of the Nomination Committee, and that no more than one member of the Nomina- tion Committee may be dependent in relation to any of the company’s major shareholders. If a member Management Management Ulrik Berthelsen (CEO) Niklas Tyrén Martin Richardson Nomination Committee Representatives of the largest shareholders. External auditors Baker Tilly Rådek AB Johan Rudengren Board of Directors AGM-elected members Jon Sigurdsson (Chairman) Jens Viebke Victor Steien Yonna Olsson Per Carlsson Union-elected members Sirpa Mäkipää Annual General Meeting Shareholders
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| 83 Annual Report 2025 is appointed by a particular shareholder, the name of the shareholder must be indicated. A member of the Nomination Committee shall carefully consider whether there is a potential conflict of interest be- fore accepting the mandate. The role of the Nomination Committee prior to the AGM is to submit proposals for the election of the Chairman of the Meeting, the number of Board members and auditors, fees to the Board and the au- ditors, election of Board members, election of the Chairman of the Board and election of auditors. In addition, the Nomination Committee shall make pro- posals regarding the tasks and principles of the Nom- ination Committee. When assessing its proposals, the Nomination Committee shall pay particular attention to the requirement for diversity and breadth on the Board and strive for a gender balance. The Nomination Committee held two (2) meet- ings prior to the 2026 AGM. The Nomination Com- mittee’s proposals are presented in the notice of the AGM and are also available on the company’s website. Board composition and work Stille’s Board consists of the Chairman and six mem- bers, of whom one is an employee representative. According to the Articles of Association, the Board shall consist of no less than three and no more than seven ordinary members, without or with no more than one deputy. According to the terms of refer- ence, the Board must hold at least four meetings per year. During the year, the Board convened eleven (11) times. The Board of Directors is responsible for oversee- ing the organization, administration and manage- ment of the Stille Group’s operations in accordance with the interests of the company and its sharehold- ers. The Board of Directors sets the Group’s overall objectives, strategies and policies, and makes deci- sions regarding acquisitions, divestments and invest- ments, in accordance with the applicable authoriza- tion and decision-making procedures for investments and development projects. Other tasks include: • Establishing the necessary guidelines for the com- pany’s social responsibility in order to ensure its capability to create long-term value. • Ensuring that effective systems are in place to monitor and control the company’s activities and the risks associated with these activities. • Ensuring adequate control of the company’s com- pliance with laws and regulations that apply to the company’s activities, and the company’s compli- ance with internal guidelines. Jon Sigurdsson has been the Chairman of Stille’s Board since 2025. The Chairman of the Board is ap- pointed by the AGM. The Chairman organizes and leads the work of the Board, ensures that the Board continuously deepens its knowledge of the compa- ny, communicates the views of the shareholders and supports the CEO. The Chairman and the CEO pre- pare the draft agenda for the Board’s meetings. The Chairman is responsible for ensuring that the Board’s decisions are implemented effectively, that the Board’s work is evaluated annually and that the Nomination Committee is informed of the outcome of the evaluation. In accordance with the provisions of the Swedish Companies Act, the Board adopts terms of reference for its work every year outlining the division of du- ties within the Board, the division of responsibilities between the Board and the CEO, and financial re- porting to the Board. At each quarterly Board meeting, the CEO presents an economic and financial report on operations and also provides the Board with a monthly report con- taining significant events and a summary of financial information. The Board reviews the audit report an- nually, which outlines how the company’s organiza- tion is structured to ensure that accounting, asset
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Stille AB (publ) 84 | management, and the company’s financial situation are controlled effectively. The Board has elected not to establish an Au- dit Committee or Remuneration Committee. These matters will instead be managed under the leader- ship of the Chairman, with the entire Board involved in the preparation. The Board makes decisions re- garding remuneration and other terms of employ- ment for Management. Stille’s main shareholders have appointed a Nomination Committee until the next AGM. The role of the Nomination Committee is to submit proposals for Board members and fees to the next AGM and also, where appropriate, propos- als for auditors. Management Management includes the CEO, CFO and COO. The local CEOs of Stille Inc, S&T, Fehling and Surgical Holdings are continuing as senior executives on the management team. In addition to central management issues, Manage- ment also handles various functions within the Group such as research and development, marketing sup- port, production and quality management, risk man- agement, financing and financial control. For information about the CEO’s background and shareholding, refer to page 87. Remuneration of senior executives Stille aims to ensure that the principles of remuner- ation for Management are competitive, that the re- muneration is determined by the Board and based on the importance of the person’s role, experience and performance, and that the remuneration package in- cludes the following components: fixed basic salary, short-term variable remuneration, pension benefits, other benefits and severance terms. For more infor- mation about these guidelines, refer to Note 9. External auditors The auditors work according to an audit plan and re- port their findings to the Board on an ongoing basis, both during the audit and when the annual accounts are adopted. The auditors examine the financial statements to assess their accuracy, completeness and consis- tency with generally accepted accounting principles. The auditor-in-charge attends the AGM and de- scribes the audit work and observations. Auditors are elected by the AGM for a term of one year. Baker Tilly Rådek AB was elected auditor at the AGM. The auditor-in-charge is Authorized Public Ac- countant Johan Rudengren.
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| 85 Annual Report 2025 Board of Directors 21 1. JON SIGURDSSON Chairman of the Board Elected: 2025 Education: BSc in Industrial Engineering, Sydansk University Denmark. Master of Business Administration (MBA), Alliant International University San Diego California. Other current assignments: Chairman in Vitrolife AB (VITR:ST), Chairman of SET Hf and Board member of Alfa Umbreyting 2&3. Main work experience and other information CEO of Ossur (EMBLA.CO), now Embla Medical, a prosthetic company, for 26 years. When he joined Ossur as CEO, it was a small local company with 42 employees and MUSD 3 in sales. In 2022, it was one of the leaders in its industry with MUSD 700 in sales and 4,000 employees. Took the company public in 1999, secondary listing on Nasdaq Copenhagen in 2012. Expanded through internal growth and consolidation of the industry, with more than 70 companies acquired during his tenure as CEO. Chairman of the Icelandic American Chamber of Commerce. Commercial Counselor for the Icelandic Trade Council in New York, CFO at Álafoss, Head of the Interna- tional Division of Eimskip and Engineer for Bang and Olufsen Denmark. Independent of the company and management: Yes Independent of major shareholders: Yes Shareholding: 5,600 shares 2. JENS VIEBKE Board member since 2024. Born: 1967 Education: MSc in Engineering and PhD in Polymer Technol- ogy from the Royal Institute of Technology in Stockholm and Executive MBA from the Stockholm School of Economics. Main work experience and other information: Extensive life science experience from various senior positions in strategy, business development, research and development in companies including GE Healthcare, Pharmacia & Upjohn and Getinge. Independent of the company and management: Yes Independent of major shareholders: Yes Shareholding: 2,750 shares 3. VICTOR STEIEN Board member Born: 1983 Elected: 2023 Education: MSc in Economics (major in Finance) from the Stock- holm School of Economics. Other current assignments: Partner and Board Member of Impilo, Pelago Bioscience and VaccinDirekt. Main work experience and other information: Member of Impilo’s investment team since 2018 and prior to that, ten years in investment banking at Goldman Sachs (2008– 2014) and Morgan Stanley (2014–2018). Independent of the company and management: Yes Independent of major shareholders: No Shareholding: Related-party shareholdings: 2,056,075 shares 3
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Stille AB (publ) 86 | 5 4 6 4. YONNA OLSSON Board member since 2021. Born: 1963 Education: MSc in Engineering, MBA, Styrelseakademien Stockholm. Other current assignments: Board member and advisor, primarily in medtech. Main work experience and other information: Board member and investor. 30 years of experience from international senior positions in sales, marketing, strategy and general management at Johnson & Johnson, AstraZene- ca, and others. Most recently CEO and Regional Manager for Northern Europe at Olympus. Board work since 2010. Independent of the company and management: Yes Independent of major shareholders: Yes Shareholding: 1,431 shares 5. PER CARLSSON Board member since 2023. Born: 1964 Education: MSc in Economics, Uppsala University Main work experience and other information: Extensive international experience from positions in finance including CFO of Electrolux Small Appliances, CFO Dometic and CFO Camfil Group. Independent of the company and management: Yes Independent of major shareholders: Yes Shareholding: 230 shares 6. SIRPA MÄKIPÄÄ Board member since 2000 (employee representative). Born: 1960 Independent of the company and management: Yes Independent of major shareholders: Yes Shareholding: 0 shares
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| 87 Annual Report 2025 Management 3 2 1. ULRIK BERTHELSEN Position:President and CEO Born: 1978 Employed since: 2025 Previous experience: 20 years of experience within medtech, primarily at Coloplast and Atos Medical. Previous roles include the following: CEO XO CARE A/S; Chief Commercialization & Innovation Officer Atos Medical AB; Se- nior Vice President – Sales, Atos Medical AB; Vice President & General Manager, Coloplast UK & Ireland; Vice President & General Manager, Coloplast Italy; Director of Master Dealer Sales and other com- mercial leadership roles at Coloplast US and Coloplast A/S; Associate at McKinsey & Co. Shareholding: 17,828 shares 2. NIKLAS TYRÉN Position: Chief Financial Officer Born: 1972 Employed since: 2025 Previous experience: Extensive experience from various senior strategic financial roles in publicly listed, private equity-owned and family-held businesses across medtech, FMCG and retail. Examples include Group CFO of Kjell Group, interim CFO at Barry Callebaut Beverages and senior finance positions at Findus, Heinz Nordic, Gambro and Unilever. Shareholding: 0 shares 3. MARTIN RICHARDSON Position: Chief Financial Officer Born: 1975 Employed since: 2025 Previous experience: More than 20 years of experience in operations and medtech for both publicly listed and private equity-owned companies, such as Gambro, Baxter, Atos Medical, and Coloplast. Has held senior leadership roles in supply chain, manufac- turing, and overall operations, including SVP Operations at Atos Medical and VP International Manufacturing CN, DE, and SE at Coloplast A/S. Shareholding: 0 shares 1
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| 89 Annual Report 2025 To the general meeting of the shareholders of Stille AB (publ), corporate identity number 556249-4848. Report on the annual accounts and consolidated accounts Opinions We have audited the annual accounts and consolidated accounts of Stille AB (publ) for the year 2025. The annual accounts and consolidated accounts of the company are included on pages 32-79 in this document. In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and pres- ent fairly, in all material respects, the financial position of parent company as of 31 December 2025 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The consolidated acc ounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2025 and their financial performance and cash flow for the year then ended in accordance with IFRS Accounting Standards, as adopted by the EU, and the An- nual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. Our statements do not cover the corporate governance report on pages 81–87. The man- agement report is consistent with the other parts of the annual report and the consolidated financial statements. We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the group. Our opinions in this report on the the annual accounts and consolidated accounts are consistent with the content of the additional report that has been submitted to the parent company’s audit committee in accordance with the Audit Regulation (537/2014) Article 11. Basis for Opinions We conducted our audit in accordance with Internation- al Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with profession- al ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. This includes that, based on the best of our knowledge and belief, no prohibited services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided to the audited company or, where applicable, its parent company or its controlled companies within the EU. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opin- ions. Other Information than the annual accounts and consolidated accounts This document also contains other information than the annual accounts and consolidated accounts and is found on pages 1–31. The Board of Directors and the Managing Director are responsible for this other information. Our opinion on the annual accounts and consolidated accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information. In connection with our audit of the annual accounts and consolidated accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts. In this procedure e also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this infor- mation, conclude that there is a material misstatement of this other information, We are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presenta- tion in accordance with the Annual Accounts Act and, con- cerning the consolidated accounts, in accordance with IFRS Auditor’s report
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Stille AB (publ) 90 | Accounting Standards, as adopted by the EU. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consoli- dated accounts that are free from material misstatement, whether due to fraud or error. In preparing the annual accounts and consolidated accounts, The Board of Directors and the Managing Direc- tor are responsible for the assessment of the company’s and the group’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intends to liquidate the company, to cease operations, or has no realistic alternative but to do so. Auditor’s responsibility Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conduct- ed in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material mis- statement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to in- fluence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepti- cism throughout the audit. we also: • Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for • one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of the company’s internal control relevant to our audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing • an opinion on the effectiveness of the company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the Manag- ing Director. • Conclude on the appropriateness of the Board of Direc- tors’ and the Managing Director’s use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company’s and the group’s ability to continue as a going concern. If We conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts and consolidated accounts. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause a company and a group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the annual accounts and consolidated accounts, includ- ing the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation. • plan and perform the group audit to obtain sufficient and appropriate audit evidence regarding the financial informa- tion of the entities or business units within the group as a basis for forming an opinion on the consolidated accounts. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our opinions. We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of significant audit findings during our audit, including any significant deficiencies in internal control that We identified. We must also provide the Board of Directors with a state- ment that we have complied with relevant ethical require- ments regarding independence, and to communicate with them all relationships and other matters that may reason- ably be thought to bear on our independence, and where
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| 91 Annual Report 2025 applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the annual accounts and con- solidated accounts, including the most important assessed risks for material misstatement, and are therefore the key audit matters. We describe these matters in the auditor’s report unless law or regulation precludes disclosure about the matter. Report on other legal and regulatory requirements Opinions In addition to our audit of the annual accounts and consoli- dated accounts, we have also audited the administration of the Board of Directors and the Managing Director of Stille AB(publ) for the year 2025 and the proposed appropria- tions of the company’s profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year. Basis for Opinions We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibil- ities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Responsibilities of the Board of Directors and the Managing Director The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the pro- posal of a dividend, this includes an assessment of wheth- er the dividend is justifiable considering the requirements which the company’s and the group’s type of operations, size and risks place on the size of the parent company’s and the group’s equity, consolidation requirements, liquidi- ty and position in general. The Board of Directors is responsible for the company’s organization and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s and the group’s financial situation and ensuring that the company’s organization is designed so that the accounting, management of assets and the company’s financial affairs otherwise are con- trolled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfill the company’s accounting in accordance with law and handle the management of assets in a reassuring manner. Auditor’s responsibility Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Direc- tors or the Managing Director in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. Our objective concerning the audit of the proposed appro- priations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropria- tions of the company’s profit or loss are not in accordance with the Companies Act. As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgment and maintain professional scepticism throughout
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Stille AB (publ) 92 | the audit. The examination of the administration and the proposed appropriations of the company’s profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on our professional judgment with starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company’s situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion on the Board of Directors’ proposed appro- priations of the company’s profit or loss We examined the Board of Directors’ reasoned statement and a selection of supporting evidence in order to be able to assess whether the proposal is in accordance with the Companies Act. Auditor’s Review of the Corporate Governance Report The board of directors is responsible for the corporate governance report on pages 81–87 and for ensuring that it is prepared in accordance with the Annual Accounts Act. Our review has been conducted in accordance with FAR’s recommendation RevR 16 The Auditor’s Review of the Corporate Governance Report. This means that our review of the corporate governance report has a differ- ent focus and a significantly smaller scope compared to the focus and scope of an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that this review provides us with a sufficient basis for our statements. A corporate governance report has been prepared. Dis- closures in accordance with Chapter 6, Section 6, second paragraph, points 2–6 of the Annual Accounts Act and Chapter 7, Section 31, second paragraph of the same act are consistent with the other parts of the annual report and the consolidated financial statements and are in accordance with the Annual Accounts Act. Baker Tilly Rådek AB, Rademachergatan 6, was appoint- ed auditor of Stille AB by the general meeting of the shareholders on the 7th of may 2025 and has been the company’s auditor since the 5th June 2021. Eskilstuna the 1st of April 2026 Baker Tilly Rådek AB Johan Rudengren Authorized Public Accountant
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| 93 Annual Report 2025 Torshälla the 1st of April 2026 We assure that, to the best of our knowledge, the Annual Report for the 2025 financial year has been prepared in accordance with generally accepted accounting principles for listed companies, that the information provided is consistent with the actual circumstances and that nothing of material importance has been omitted that could affect the view of the company presented by the Annual Report. Jon Sigurdsson Chairman Jens Viebke Board member Yonna Olsson Board member Per Carlsson Board member Sirpa Mäkipää Employee representative Victor Steien Board member Our audit report was submitted on the 1st of April 2026. Baker Tilly Rådek AB Johan Rudengren Authorized Public Accountant Ulrik Berthelsen President and CEO Signatures
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Stille AB (publ) 94 | Average number of employees The average of number of employees at the end of each financial year. CAGR Compound annual growth rate. Cardiac and vascular surgery Includes surgical procedures involving the heart or blood vessels. C-arm CAT/conventional X-ray with a C-shaped pendulum stand. Used to obtain continuous, real-time images during sur- gery or treatment. CSRD The Corporate Sustainability Reporting Directive. An EU Directive requiring companies to report their environmen- tal impact, social responsibility and governance. Debt/equity ratio Net debt divided by total capital. Net debt is calculated as total borrowings (comprising current and non-current liabilities related to right-of-use assets) less cash and cash equivalents. Total capital is calculated as equity in the consolidated balance sheet plus net debt. Distributors Companies that sell medtech products to local/national health and medical care services. EBIT Earnings before interest and taxes. EBIT, % Earnings before interest and taxes expressed as a percent- age of net sales. Definitions
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| 95 Annual Report 2025 EBITDA Earnings before interest, taxes, depreciation and amorti- zation. EBITDA, % Earnings before interest, taxes, depreciation, and amorti- zation expressed as a percentage of net sales. ERCP Endoscopic retrograde cholangiopancreatography is a procedure to diagnose and treat problems in the bile ducts and pancreas. Equity/assets ratio Closing equity (including minority) expressed as a percent- age of the balance sheet total at the end of the period. Equity per share Equity divided by the number of shares at the balance sheet date. Minimally invasive procedures Use of laparoscopic and remote-controlled instruments with direct observation of the surgical site through an endoscope or similar device. Reducing the extent of injuries with mini- mally invasive surgery can lead to shorter hospital stays. MDD Medical Device Directive. The EU Medical Device Directive. MDR The Medical Devices Regulation. The EU’s new directive for medical devices that will replace the MDD. Organic growth Change in sales adjusted for sales obtained from acquisi- tions, compared with the same period of the preceding year. Plastic surgery Includes reconstructive plastic surgery, which involves surgery to restore normal form and function after various congenital deformities and injuries, and aesthetic plastic surgery, sometimes colloquially referred to as “cosmetic surgery.”
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STILLE röd: Pantone 1935 (#cb003d) CMYK: 0, 100, 65, 15 STILLE grå: Pantone 431 (#71777a) CMYK: 11, 0, 0, 65 More detailed information available from Ulrik Berthelsen President and CEO +46 70 033 38 25 ulrik.berthelsen@stille.se Stille AB (publ) Ekbacken 11 SE-644 30, Torshälla +46 8 588 580 00 info@stille.se www.stille.se