Risks and uncertainties

Description: The aftermarket for passenger cars and light trucks is mainly influenced by the size and age of the fleet and the total mileage of the vehicles. Developments differ slightly between our markets, but over time we expect the historical trend of some increase in number of vehicles and miles traveled to continue. For the long-term success of the Group, it is essential that we continue to adapt to customer behaviors and expectations – especially in terms of availability, convenience and sustainability. These are factors that play an important role in customers’ choice of vehicles, transport solutions and suppliers.

• A sharp decrease in the number of new cars or mileage could negatively affect the Group’s operations.
• A delay in adapting to new customer behaviors can negatively impact the Group’s operations.

Operation: Through our high rate of innovation in concept development we ensure that MEKO remains competitive – both through our offerings and workshop concepts. It strengthens our relationship to our workshop customers and helps build longterm loyalty. We are constantly developing and digitalizing new, more sustainable products and services for car owners and workshops, which strengthens our offering throughout the value chain. We are actively working to meet the needs of all car owners, whether they are business customers or consumers.

The demand for mobility is timeless. By adapting our business according to customer needs, we are creating a longterm business regardless of the predominant type of vehicles on the roads. We are investing in advanced data analytics to identify and understand future trends. Based on these, we create relevant and competitive offerings in our business areas.

Our geographical spread across eight different markets in northern Europe makes us less vulnerable to market fluctuations in individual countries. We robustly manage market and macroeconomic risks through strategic initiatives, and maximize synergies and share best practices across the Group.

Description: Technological advances, an increased focus on sustainability and policy decisions are rapidly driving the transition from fossil fuels to electric. This change affects customer needs and creates demand for new products and services. Growth is particularly expected in areas such as software, data, tires and glass.

The share of fully electric cars in Sweden amounted to 8.6 percent at the end of 2025. The equivalent figure for Denmark was 18.9 percent, Finland 6.1 percent, Norway 27.3 percent, Poland 0.3 percent, and the Baltics 1.0 percent.

• The transition to electric means that the industry needs to adapt to meet changing demand, for example regarding service and repair need.
• Climate policy decisions and instruments strongly

Operation: MEKO is taking an active role in the transition from fossil to electric vehicles by ensuring that our workshops and customers are equipped for the future. For many years, we have invested in training mechanics in electric and hybrid technologies through our training centers. Increasing the share of qualified mechanics remains a priority for us. To meet these new needs, we are continuously expanding our range of spare parts and accessories for electric vehicles and ensuring that workshops have access to the right equipment. We are developing products and services adapted to the growing electric vehicle market to remain their preferred choice.

A central part of our strategy is the certification of concept workshops according to our own standard E+. The standard is adapted to the guidelines and regulations that exist in the respective market and ensures that our workshops have the right expertise, equipment and charging possibilities. The certification has three levels. The first provides workshops with basic expertise in electric mechanics, making them ready to handle most operations on today’s electric vehicles. The second and third levels enable more advanced service, including work on electric vehicle batteries – a critical skill as the electric vehicle fleet ages and demand for qualified service increases.

Description: The level of competition regarding spareparts sales to workshops is high, and has historically consisted of branded operators and independent operators such as MEKO. We are seeing increased activity from foreign e-commerce operators, who are primarily competing with a lower pricing structure. Car manufacturers are trying to extend car owner loyalty for longer with the aid of service agreements and extended warranties. Suppliers that have previously only conducted B2B sales are expanding into the B2C segment and consolidation is taking place among suppliers.

• Significantly increased competition from one or more operators may result in reduced market shares for the Group.

Operation: We continuously invest in a competitive customer offering for both workshop customers and car owners. To strengthen our market position, we focus on services that build loyalty, including technical support and flexible booking and ordering solutions.

The majority of our sales are made digitally, which means investments in our digital channels is crucial.

At the same time, our strong local presence ensures high availability through frequent deliveries – often several times a day. Fast and reliable delivery is a key factor, as workshops often order parts for immediate needs – a challenge that purely e-commerce operators have difficultly matching.

Description: There is a shortage of vehicle technicians across much of the European market. The low attractiveness of service professions is one of the reasons why few people are applying for vocational training.

Many traditional vehicle technician training courses do not meet the needs of modern workshops, which are setting ever higher demands on technical expertise.

• In the long term, the shortage of vehicle technicians with relevant training and experience may be a factor limiting opportunities for continued growth in the sector.
• The competition for labor may lead to increased personnel expenses, thereby reducing the profitability of workshops

Operation: We strive continuously to attract and train new talents within the automotive industry through our strong brands, concepts and training initiatives. Through our training centers, partnerships with upper-secondary schools and other training providers, and our own upper-secondary schools programs, ProMeister Fordon in Sweden, we ensure a stable regrowth of automotive technicians.

To meet the development of the industry, we are investing specifically in training in electric vehicle technology, tires and glass, raising the level of expertise for both existing and future technicians. In addition, we offer recruitment services to our affiliated workshops and run PR and information campaigns to increase interest in the profession and ensure the industry’s long-term skills supply.

Description: An unstable international environment of geopolitical tensions, the continuing war in Ukraine and uncertainties related to tariffs and other trade barriers have contributed to a subdued recovery in the global economy.

As a consequence, there is a risk of further disruptions both in supply chains and in consumers’ purchasing power.

The primary risks to the business are:

• Significant impact on our product flows due to disruption in the supply and logistics chains, which impacts availability and purchasing prices.
• Subdued consumer confidence, resulting in postponed purchases or a shift towards low-cost products.

Operation: Our business is based on the timeless need for mobility. With a stable business model and operations in several markets, we have resilience regardless of the economic situation and changes in the external environment.

Through close collaboration and careful monitoring of our suppliers, we ensure a high delivery capacity. We continuously adjust our assortment and inventory levels to guarantee availability for our customers. Price adjustments take place continuously to offset rising purchasing prices and costs. The product range has been supplemented during the year to reflect the increased consumer demand for lower-priced products.

Description: Our employees are our most important asset. A good physical and psychosocial working environment, good social conditions, development opportunities and a business that is sustainable in the long term are essential for attracting, retaining and engaging employees.

• An inability to attract, retain and develop committed managers and employees would affect the Group’s ability to implement strategies, further develop the business and achieve set targets.
• Poor working conditions could entail an increased risk of workplace accidents or a higher rate of sick leave. It could also lead to employees leaving the company to take up a position with another employer.

Operation: MEKO aims to reflect the diversity of our customers and the society in which we operate through employees with different skills and experiences. Our attractiveness, employee turnover and how well we engage our employees are continuosly analyzed. Each year, we evaluate our employees and draw up development plans to ensure internal candidates for our annual successionplanning for senior management and key positions.

In 2025 MEKO concluded its second talent program with internal talents from Sweden, Norway, Denmark, Poland, the Baltics and Finland with the aim of developing internal talents with business knowledge and competencies tailored to the participants’ objectives. A new program will start in the first half of 2026 with internal talents. In 2024, a training program for all managers within the Group and employees involved in recruitment and promotion took place with the aim of raising awareness of diversity and inclusion in order to be a more diverse employer. In 2025, the work has continued through local initiatives similar to the Astrid program in Sweden, a mentoring program for female employees in Sweden with mentors from different parts of the organization.

The work of identifying, analyzing and minimizing work environment risks is carried out systematically at every level of operations. We identify risk areas and any irregularities through our joint Code of Conduct, whistleblower system, Work Environment Policy, and risk analyses, together with employee development talks, employee surveys, and ongoing dialogues.

Description: The use of digital and/or automated services is continuing to grow at a rapid pace in every part of society. As more and more interactions, flows and processes are digitalized and automated, there is also increasing dependence on systems, which in turn increases the complexity of IT environments.

• Disruptions or operational stoppages in the IT environment have a negative impact on the business. Sales-related systems and ordering and inventory management systems are particularly critical, as disruptions here would negatively affect deliveries to our customers and consequently our sales.

Operation: Threats and risks are regularly analyzed to identify and ensure that we are continually working with improvements, and that we have alternative operating capabilities in critical systems as well as established communication channels. Continuous efforts are made to strengthen and develop the resilience of the IT environment to manage disruptions and outages. Reviews of frameworks, processes, roles and technical solutions ensure robustness of our environments over time. In addition, we have launched a Group-wide initiative to modernize our IT environment for our shared business processes. Capabilities offered by cloud technology are integrated into our framework for example for security, risk, redundancy, good crisis recovery capability and business continuity. This is a long-term strategic initiative that in the years ahead will strengthen our ability to manage any disruptions linked to the IT environment. It well also strengthen our defenses against cyber threats.

Description: Like many other companies, there is a risk that we are subjected to cyber-attacks, such as attempted fraud, hacking or sabotage. As cybercrime can cause significant financial and reputational damage to the Group, we take this risk very seriously. To counter attempts at hacking, theft or sabotage in our IT environments, we perform continuous exernal monitoring and evaluate the adequacy of our protection and controls to ensure their suitability. We are continually developing our procedures, processes and technical solutions in this area to be prepared if we were to be targeted by cybercrime.

Operation: Since 2020, we have engaged in a comprehensive Group initiative to strengthen monitoring, controls, resources and training for all business areas. In 2024–2025, we improved our overall cybersecurity management system (CSMS), our internal control framework and its compliance processes, as well as our technical capabilities in areas such as vulnerability management and external monitoring. The aim of this work is to be better equipped for any security- related disruptions.

Operations in Finland and Poland that MEKO acquired in recent years implemented in 2024-2025 the corresponding security work that is already in place in other parts of the Group. During the year, these operations met the requirements for our cybersecurity insurance and are now included in MEKO’s group insurance.

Security controls and processes are also being modernized as part of our joint efforts to renew and streamline ERP systems. This strengthens our resilience in these critical systems.

Description: MEKO’s efficient wholesale and logistics business is an important part of our core business. Any pootential damage, such as fire or technical disruptions, at any of the Group’s distribution centers would entail negative consequences for the company’s customers in the affected region.

Operation: To both increase availability and reduce risk, MEKO has chosen to build a network of several national distribution centers. They stock both a Group-wide and local market- specific range. In this way, we always ensure access to backup supplies through one of the Group’s distribution centers.

Through major investments in 2025, the Group now has consistently modern distribution centers with high standards of safety, working environment and delivery capacity.

We are also continuously striving to identify and prevent risks throughout our distribution network. Fire safety and protection against technical disruptions are a prioritized area at all of our facilities and we have established continuity plans.

Description: The Group’s operations include sales and stockholding of a large number of products, many of which are considered theft- prone.

The Group’s operations also include handling cash, which entails a risk of theft, both in branches and during the transportation of cash from the branch to the bank.

• Deficient processes for detecting theft and shrinkage would have a negative impact on the Group’s earnings.

Operation: Within the Group, continuous work is done to combat shrinkage and to define what constitutes scrapping, internal consumption and actual theft. This work is based on the attitude that it is important to focus on all types of shrinkage, for example by reviewing ordering procedures, delivery checks and the unpacking of goods. Our cash handling in the Nordic region has decreased in recent years in favor of credit cards. Some units are even cashfree. In Poland and the Baltics, payments are still commonly made in cash. In recent years, we have worked to clarify guidelines for responsibility and control by, for example, further strengthening the common framework for internal control for branches and local warehouses.

Description: A large number of products and services under the Group’s brands are offered in-house or through partnerships. MEKO has a product responsibility for products that do not work as expected or are defective, as well as for quality assurance of services such as repair and service.

• Insufficient quality control by our own and collaborating businesses, such as by affiliated workshops and suppliers, may result in liability to pay compensation for defective products, faulty repairs and potential consequential damage.
• Dissatisfied customers can result in reduced market share and a lack of confidence in our offerings.

Operation: We secure our product liability through purchasing agreements, imposing requirements on our suppliers, and subjecting our own brands to careful quality controls. Our affiliated workshops must also undergo extensive training and meet the requirements we set in areas such as technical training, expertise and equipment. This is supplemented with Group-wide insurance protection. We monitor quality and customer satisfaction through quality management systems and customer and consumer surveys. We also conduct external and internal audits to ensure quality and customer satisfaction. We are constantly developing the Group’s workshop enterprise system in order to support efforts by the workshops to comply with rules and regulations, and so they can work efficiently and maintain a high level of service to customers.

Description: MEKO has an impact on the environment and climate through its activities and the products and services the Group offers. MEKO’s climate and environmental risks are described in more detail on pages 50 and 59 in our Annual and Sustainability Report 2025.

• Climate change may lead to physical risks such as the risk of warehouses flooding, regulatory risks in the form of regulations targeting the automotive industry, market risks in the form of the need for new products and services, new vehicle technologies and increased investor demands on sustainability performance.
• In addition to more climate legislation, stricter legislation regarding chemical products, waste management, as well as increased taxes and other incentives may lead to investment requirements and/or lower profitability.
• Any violations of regulations would have a legal impact and damage trust in our offerings and our brands.

Operation: We adapt our development on the basis of laws and regulations, and keep ourselves up-to-date regarding political decisions on the environment and climate, in order to prepare as far as possible for any changes. We have procedures and processes to ensure compliance with laws and regulations.

In 2025, we performed a new scenario analysis of climate- related financial risks. New technologies and the need for new products were identified, as before, as a business opportunity for the Group, which is already integrated in MEKO’s strategy and activities.

The scenario analysis focused on both risks and opportunities. A more detailed description can be found on page 51 in our Annual and Sustainability Report 2025.

The Group works systematically with the environment, with parts of the business having certified environmental management systems. We follow up the business areas’ systematic environmental activities and, during the year, we set science-based climate targets. We maintain a dialogue with our suppliers to gain more knowledge of the environmental and climate impact of the products we provide. Read more on page 43 and 50–59 in our Annual and Sustainability Report 2025.

Description: MEKO uses a large number of suppliers to ensure the availability of a wide range of spare parts and car accessories for our customers. Spare parts are mainly purchased from the major European suppliers that also supply the car manufacturers. We have an ambition to increase the offering of own brands, where some of the suppliers have production in risk countries in terms of human rights, working conditions, environment and corruption.

Operation: To facilitate control of the supplier level and the supply chain, all major purchasing agreements are governed by the Group’s joint purchasing department.

We place demands on our suppliers through our Code of Conduct for suppliers in relation to human rights, workconditions, environment and anti-corruption. We are constantly working to further strengthen the work for a sustainable supply chain by working on a risk basis and, if necessary, conducting audits of suppliers. This is mainly achieved through the implementation of new system support to gather suppliers that will enable improved risk management, monitoring and transparency. Read more about suppliers and the social aspect on page 67–68 in our Annual and Sustainability report 2025.

We perform meticulous quality checks of our ownbrand products in our quality laboratory in Poland, and conduct site visits to our suppliers.

Description: Individual employees or groups of employees are at risk of being unduly influenced by suppliers or other business partners, including through bribes of various kinds. Management, purchasers and sellers are groups that run a greater risk of being involved in corruption. MEKO makes purchases from certain markets where corruption can be a problem, which requires that we actively distance ourselves from such activities and interests (see above under sustainable supply chain).

Operation:The Group has zero tolerance for corruption, which is clearly stated in our Code of Conduct and in the Group’s anti-corruption policy. In addition to this policy, there are specific anti-corruption guidelines with rules on gifts and hospitality that all employees have access to. Read more about governance and anti-corruption on pages 70–72 in our Annual and Sustainability Report.

Description: New legislation for sustainability and sustainability reporting, such as the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy, the Norwegian Transparency Act and the future Corporate Sustainability Due Diligence Directive (CSDDD), introduce new requirements that concern areas such as governance, access and quality of data as well as internal control. Deficient internal control, quality and access to sustainability data as well as insufficient expertise in the area could entail a risk of failing to meet the requirements stipulated in the new reporting. The new regulations also encompass changed requirements for governance and integration of sustainability-related topics.

Operation: The Annual and Sustainability Report 2025 is the first under the CSRD and its reporting standards ESRS. Work on improving the sustainability reporting process is ongoing. MEKO ensures that there is an annual review and update of governing documents such as codes of conduct and policies. Processes and procedures to meet the requirements of Do No Significant Harm (DNSH) and criteria for substantial contribution in the EU Taxonomy are also being developed. Read more on the EU Taxonomy on page 60 in our Annual and Sustainability Report 2025.