Audited annual report 2025 and profit allocation proposal

The council of Nordecon AS approved on 29 April 2026 the consolidated audited
annual report and profit allocation proposal for the year 2025. The council
decided to present the annual report and profit allocation proposal as prepared
by the management for the approval of the general meeting of shareholders.

The net loss attributable to the shareholders of the Company for the 2025
financial year amounts to -4,605 thousand euros. The retained profit of previous
periods amounts to 4,746 thousand euros. To cover the net loss of the 2025
financial year on the account of the retained profit of the previous periods. To
leave the retained profit of previous periods undistributed and not pay
dividends to the shareholders. To not make any appropriations to the legal
reserve or other reserves provided for by the law or the articles of
association.

The annual report that contains auditor's report and profit allocation proposal
for 2025 is attached to this announcement and made available on Nasdaq Tallinn
Stock Exchange's web page www.nasdaqbaltic.com (http://www.nasdaqbaltic.com) and
Nordecon's web page www.nordecon.com (http://www.nordecon.com).

Compared to the preliminary financial results disclosed in the quarterly report
published on 5 February 2026, a correction has been introduced in the audited
annual report for 2025 in connection with a legal dispute involving the Group's
subsidiary SweNCN AB. On 17 March 2026, SweNCN AB and Nordecon AS entered into a
settlement agreement with the customer, pursuant to which SweNCN AB shall pay
the customer 70.33 million Swedish krona (approximately 6.5 million euros).
Based on additional information obtained after the reporting date, management,
in agreement with the auditor, revised its assessment and concluded that the
obligation arising from the legal dispute already existed as of 31 December
2025. Consequently, the settlement has been treated in the annual report as an
adjusting post?reporting date event and has been recognised in the 2025
financial statements as other operating expenses and as a provision in the
amount of 6,044 thousand euros. The settlement amount has been discounted,
considering the timing of the settlement payments and the time value of money.
The amount will be settled under a long?term payment schedule and does not give
rise to liquidity issues for the Group. As a result of the correction, the
Group's operating profit and net result decreased by 6,044 thousand euros, and
provisions recognised in the statement of financial position increased by 2,738
thousand euros in short?term provisions and by 3,306 thousand euros in long?term
provisions.

Nordecon (www.nordecon.com (http://www.nordecon.com)) is a group of construction
companies whose core business is construction project management and general
contracting in the buildings and infrastructures segment. Geographically the
Group operates in Estonia, Ukraine and Sweden. The parent of the Group is
Nordecon AS, a company registered and located in Tallinn, Estonia. The
consolidated revenue of the Group in 2025 was 208 million euros. Currently
Nordecon Group employs close 430 people. Since 18 May 2006 the company's shares
have been quoted in the main list of the Nasdaq Tallinn Stock Exchange.

Andri Hõbemägi
Nordecon AS
Head of Investor Relations
Tel: +372 6272 022
E-mail: [email protected] (mailto:[email protected])
www.nordecon.com (http://www.nordecon.com)