The Supervisory Board of AS Harju Elekter Group decided to increase the share capital of the company by 34,020 euros by issuing new ordinary shares. The increase in the share capital is due to the need to issue new shares to the management board members and key personnel of Harju Elekter and its subsidiaries participating in the option program approved with the resolution of the general meeting on 29 April 2021.

A total of 5 members of the Management Board of Harju Elekter Group participated in the share issue related to the implementation of the option program, who subscribed for a total of 54,000 shares for a total of 243,00 euros.

Decisions of the Supervisory Board of AS Harju Elekter Group:
1. Harju Elekter’s share capital will be increased by a maximum of 34,020 euros, i.e., from 11,671,235.10 euros to 11,705,255.10 euros.
2. The share capital will be increased by way of issuing 54,000 new ordinary shares (ISIN: EE3100004250) with a book value of 0.63 euros per share. The shares will be issued with a share premium. The issue price is 4.50 euros per share, with a book value of the share amounting to 0.63 euros and the share premium to 3.87 euros.
3. The increase in the share capital and payment for the new shares will be carried out fully by way of monetary contribution. The payment deadline for the newly subscribed shares is January 9, 2026. After the increase of the share capital, Harju Elekter has a total of 18,579,770 ordinary shares without nominal value.
4. Pursuant to the resolution of the general meeting of 29 April 2021, which approved Harju Elekter’s share option program and its basic conditions, the pre-emptive right to subscribe for new shares belongs to the management board members and key personnel of Harju Elekter and its subsidiaries, as determined by the supervisory board of Harju Elekter, with whom the respective option agreements have been concluded.
5. Harju Elekter’s shareholders, who are not covered by the share option program, shall not have any pre-emptive right to subscribe for new shares issued during the increase of the share capital.
6. The due date for exercising the pre-emptive right of subscription and the due date for subscribing to shares was 5 January 2026. The option beneficiaries submitted their subscription notes in a timely manner and was fully subscribed.
7. The increase of Harju Elekter’s share capital will not create any exceptions or special rights in connection with the ordinary shares. The new shares to be issued during the increase of share capital shall grant the right to dividend for the financial year starting on 1 January 2025.

All new shares of Harju Elekter issued during the share issue will be listed on Nasdaq Tallinn on the day following the date on which the additionally issued shares with temporary ISINs have been included in the Estonian Central Securities Depository (Nasdaq CSD) together with the previously issued shares with main ISINs.

Tiit Atso
Chairman of the Management Board
+372 674 7400

AS Harju Elekter Group informs that in the year 2026, the consolidated financial results will be published as following:

2025 interim report 4Q results                      19.02.2026
2026 interim report 1Q results                      23.04.2026
2026 interim report 2Q results                      23.07.2026
2026 interim report 3Q results                      22.10.2026

The annual general meeting of shareholders is scheduled for 30 April 2026.

Tiit Atso
Chairman of the Management Board
+372 674 7400

Harju Elekter Group’s third quarter result was strong, as is typical for the peak season. We can be very satisfied with the record operating profit, which exceeded the 10 million euros for the first time. The Estonian production unit achieved strong results, but the Group’s other subsidiaries are also moving in the right direction, considering the current difficult economic situation. Operating profitability has shown strong improvement – we have reached 8.7% for the quarter and 8.0% for the nine-month period. These results reflect the impact of changes made in recent years to the Group’s strategy and structure and confirm that we are moving step by step towards our set goals. At the same time, there is still a considerable way to go before the first important goal, 10% profitability, is achieved, which requires continued focus and purposeful action.

To improve profitability, we will continue to implement the activities agreed upon in the strategy in the coming years. This provides for investments in the expansion of the Group’s factories and machine park, as well as seeking opportunities to increase production capacity outside of existing business units. As a first step in this direction, we have decided to begin construction of the long-planned expansion of the Keila plant. The plant is set to expand by 4,000 m2, with completion scheduled for October 2026. The return on investment is based on the growing trend in energy consumption, which is primarily due to the boom in the construction of network and data centres. Although Harju Elekter Group’s last quarter and the beginning of the new year have traditionally been modest in terms of results, the record profits achieved in the first nine months, and the accumulated reserves allow us to face the low season with confidence and continue with our planned activities.

Revenue and financial results

The Group’s revenue for the reporting quarter amounted to 43.0 (Q3 2024: 41.2) million euros, which is 4.5% more than in the same period last year. Total revenue for the nine-month period was 126.5 (9M 2024: 144.7) million euros, representing a 12.6% decrease compared to the previous year. Although revenue did not reach the record levels of the past two years, the result was stable and comparable to the Group’s traditionally successful operating years.

Core business and markets

The four largest target markets – Estonia, Finland, Sweden, and Norway – accounted for a total of 86.8% of the Group’s quarterly revenue, which is 2.5 percentage points more than a year earlier. Revenue growth was primarily driven by the Estonian and Norwegian markets, while revenue in Finland and Sweden declined compared to the same period last year.

The Estonian market showed strong growth both in the quarterly and nine-month comparisons. Revenue in the reporting quarter amounted to 8.7 (Q3 2024: 6.4) million euros, marking one of the highest quarterly results in the domestic market. Revenue for the nine-month period reached 20.6 (9M 2024: 17.8) million euros. The growth was mainly supported by increased delivery volumes of compact substations to electricity distribution network customers and stable rental income from the real estate segment.

Finland remained the Group’s largest market in the reporting quarter, although revenue declined significantly. Quarterly revenue decreased by 18.8%, amounting to 13.7 (Q3 2024: 16.9) million euros, and by 25.8% over the nine-month period, totaling 40.4 (9M 2024: 54.5) million euros. The decline was mainly due to lower sales volumes of compact substations and reduced contractual manufacturing volumes.

In the Swedish market, the decline in revenue continued, primarily due to a strategic shift in the business model – the offering of turnkey (EPC) projects was discontinued, and the focus shifted to standardized factory-made products with a lower risk profile. Revenue in the quarterly comparison decreased by 26.2% and by 32.6% over the nine-month period, amounting to 4.2 (Q3 2024: 5.7) and 14.4 (9M 2024: 21.3) million euros, respectively. Although sales volumes declined, the changes are aimed at improving long-term profitability and risk management.

The Norwegian market stood out with strong growth, being a clear positive exception among the Scandinavian core markets. As a result of the successful performance of the Group’s Lithuanian subsidiary, revenue in the reporting quarter increased by 85.7%, reaching 10.7 (Q3 2024: 5.8) million euros, and by 22.2% over the nine-month period, totaling 28.2 (9M 2024: 23.1) million euros. Sales were primarily directed to the marine and shipping sectors.

In the German market, revenue decreased by 89.3% in the quarterly comparison, amounting to 0.6 (Q3 2024: 5.4) million euros, due to the completion of a large project-based order in the substation product group. However, in the nine-month view, revenue was 4.4% higher than in the previous year, totaling 11.8 (9M 2024: 11.3) million euros. In contrast, the Netherlands market saw significant growth – revenue increased more than tenfold in the quarterly comparison, reaching 3.3 (Q3 2024: 0.3) and 6.7 (9M 2024: 2.8) million euros over the nine-month period.

Investments

The Group invested a total of 2.9 (9M 2024: 2.8) million euros in non-current assets during the reporting period, including 0.3 (9M 2024: 1.4) million euros in investment properties, 1.2 (9M 2024: 0.7) million euros in property, plant, and equipment, and 1.4 (9M 2024: 0.47) million euros in intangible assets. The investments included the acquisition of production technology equipment and the development of production and process management systems, aimed at improving efficiency and quality. Investments also covered product development activities, focusing on the creation of new and improved products. In addition, part of the investments was directed towards the renovation of existing buildings.

As of the reporting date, the value of the Group’s long-term financial investments amounted to 27.2 (31.12.24: 27.7) million euros. Proceeds from the disposal of the 9.15% stake in IGL-Technologies Oy totaled 0.9 million euros in the reporting quarter, with a realized gain of 0.4 million euros. The gain was recognized through other comprehensive income.

Share

The company’s share price on the last trading day of the reporting quarter on the Nasdaq Tallinn Stock Exchange closed at 4.60 euros.

HEG interim report Q3 2025

Priit Treial
CFO and Member of the Management Board

priit.treial@harjuelekter.com
+372 674 7400

In line with AS Harju Elekter Group’s strategy to focus on its factory-based manufacturing and exit the retail and wholesale business of electrical materials and equipment, the Group’s wholly owned Estonian subsidiaries, AS Harju Elekter and Energo Veritas OÜ, have initiated a merger process. The merger agreement was signed on 01 October 2025.

As a result of the merger, Energo Veritas OÜ (the company being merged) will be consolidated into AS Harju Elekter (the acquiring company), after which Energo Veritas OÜ will be deemed dissolved. The actions required for the merger to take effect will be completed during the first quarter of 2026.

Tiit Atso
Chairman of the Management Board
+372 674 7400

The second quarter and first half of 2025 were successful for the Harju Elekter in terms of results. Although we have seen a decline in revenue compared to previous periods, we have continued to improve profitability — a long-term strategic goal of the Group.

The Estonian production unit delivered the strongest performance in the first half-year, supported by continued high demand for substation solutions for distribution networks as well as for more complex E-house type solutions used in data centres. A notable result was also achieved by the Finnish subsidiary Telesilta OY, which specializes in the design and installation of electrical solutions for the shipbuilding industry.

While the results of the Lithuanian, Finnish, and Swedish production units were more modest, the growth in order books in these units indicates increased customer interest and readiness to launch new projects — a development expected to have a positive impact in the second half of the year and into 2026. Although interest in industrial automation and energy efficiency solutions has remained stable or grown, the industrial sector as a whole remains under pressure — primarily due to high input prices and weak export performance, both of which continue to affect our key target markets where investment activity has been cautious.

Overall, we expect strong financial results for the full year 2025. This outlook is supported by declining interest rates, which have improved the investment climate and contributed to a more active economic environment.

In April, AS Harju Elekter Group’s Finnish subsidiary Harju Elekter OY exited a financial investment by divesting a 9.15% stake in IGL Technologies OY, a leading Finnish developer and operator of parking and e-mobility solutions. This move aligns with the Group’s strategy to focus on core operations and direct more resources toward product development and innovation — particularly the development of next-generation chargers that meet the growing demand for sustainable and smart energy solutions.

Revenue and financial results

The Group’s revenue decreased by 19% compared to the same period last year – both in quarterly and half-year comparisons. The revenue for the reporting quarter was 46.1 (Q2 2024: 56.8) million euros, and total revenue for the first half of the year was 83.5 (6M 2024: 103.6) million euros. Although the decline was noticeable compared to the record sales volumes of the past two years, the revenue remained at a good level considering seasonality and is comparable to the more stable in earlier years.

In the second quarter, gross profit decreased to 7.4 (Q2 2024: 8.2) million euros, but the gross margin improved to 16.1% (Q2 2024: 14.4%). The improvement in the margin was supported by more efficient cost control. Operating profit (EBIT) for the quarter was 3.6 (Q2 2024: 4.4) million euros, and the operating margin remained at the same level as in the same period last year – 7.8% (Q2 2024: 7.8%). Net profit was 2.6 (Q2 2024: 3.5) million euros, being close to the result of the first quarter. Despite the decline in sales in the first half of the year, gross profit remained stable at 13.1 (6M 2024: 13.0) million euros and the margin improved to 15.7% (6M 2024: 12.6%). Operating profit grew to 6.4 (6M 2024: 5.4) million euros and the operating margin increased to 7.6% (6M 2024: 5.2%). In addition to improved cost-efficiency, favorable currency exchange movements in the first quarter contributed significantly to the result. Net profit for the six-month period was 5.3 (6M 2024: 3.8) million euros.

Core business and markets

The Group’s revenue for the second quarter and first half of 2025 reflected a continued downward trend in the Scandinavian core markets compared to the same period in the previous year. The four largest target markets – Estonia, Finland, Sweden, and Norway – accounted for a total of 80% of the Group’s quarterly revenue. Of these, revenue increased in Norway and moderately also in Estonia.

In Estonia, revenue reached 7.0 (Q2 2024: 6.9) million euros in the reporting quarter, marking the highest second-quarter result on the home market to date. Revenue for the first half of the year amounted to 11.8 (6M 2024: 11.4) million euros. The growth was primarily supported by the volume of compact substation orders from electricity distribution network customers, as well as stable rental income from the real estate segment.

Finland remained the largest market in the quarter; however, it also experienced the most significant decline – quarterly revenue decreased by 32.9%, and in the half-year view, by 28.9%. Revenue amounted to 13.8 (Q2 2024: 20.6) million euros in the quarter and 26.7 (6M 2024: 37.5) million euros for the half-year. The main reasons for the decline were the lower sales volume of compact substations and the reduction in contractual manufacturing volumes.

Revenue in the Swedish market also declined – by 40.0% in the quarterly comparison and by 34.9% in the half-year view. Revenue amounted to 5.2 (Q2 2024: 8.7) million euros in the quarter and 10.2 (6M 2024: 15.6) million euros in the six-month period. The decline was a result of a strategic shift in the business model – the offering of turnkey (EPC) projects was discontinued, and the focus shifted to standardized factory-made products. This led to a temporary reduction in volume but helped reduce business risks.

Norway stood out among the Scandinavian markets with positive growth: quarterly revenue increased by 33%, reaching 10.6 (Q2 2024: 8.0) million euros. For the first half of the year, revenue was 17.5 (6M 2024: 17.3) million euros, remaining essentially on the same level as the previous year. The difference in the quarterly comparison was mainly due to the fact that part of the orders signed in 2024 were realized in the second quarter of 2025, resulting in a more modest revenue figure in the first quarter.

Investments

The Group invested a total of 1.9 (6M 2024: 1.5) million euros in non-current assets during the reporting period, including 0.2 (6M 2024: 0.7) million euros in investment properties, 0.8 (6M 2024: 0.4) million euros in property, plant, and equipment, and 0.9 (6M 2024: 0.4) million euros in intangible assets. The investments were aimed at acquiring production technology assets and developing production and process management systems. Investments also included product development activities focusing on the creation of new and improved products.

As of the reporting date, the value of the Group’s long-term financial investments was 27.2 (31.12.24: 27.7) million euros. Proceeds from the disposal of the 9.15% stake in IGL-Technologies Oy amounted to 0.9 million euros in the reporting quarter, with a realized gain of 0.4 million euros. The gain was recognized through other comprehensive income.

Share

The company’s share price on the last trading day of the reporting quarter on the Nasdaq Tallinn Stock Exchange closed at 4.81 euros.

HEG interim report Q2 2025

Priit Treial
CFO and Member of the Management Board

priit.treial@harjuelekter.com
+372 674 7400

The Supervisory Board of AS Harju Elekter Group decided to increase the share capital of the company by 17,010 euros by issuing new ordinary shares. The increase in the share capital is due to the need to issue new shares to the management board members and key personnel of Harju Elekter and its subsidiaries participating in the option program approved with the resolution of the general meeting on 29 April 2021.

A total of 4 current and former employees of Harju Elekter participated in the share issue related to the implementation of the option program, who subscribed for a total of 27,000 shares for a total of 121,500 euros.  A total of 57,500 shares were not subscribed.

Decisions of the Supervisory Board of AS Harju Elekter Group:

1. Harju Elekter’s share capital will be increased by a maximum of 17,010 euros, i.e., from 11,654,225.10 euros to 11,671,235.10 euros.
2. The share capital will be increased by way of issuing 27,000 new ordinary shares (ISIN: EE3100004250) with a book value of 0.63 euros per share. The shares will be issued with a share premium. The issue price is 4.50 euros per share, with a book value of the share amounting to 0.63 euros and the share premium to 3.87 euros.
3. The increase in the share capital and payment for the new shares will be carried out fully by way of monetary contribution. The payment deadline for the newly subscribed shares is July 4, 2025.  After the increase of the share capital, Harju Elekter has a total of 18,525,770 ordinary shares without nominal value.
4. Pursuant to the resolution of the general meeting of 29 April 2021, which approved Harju Elekter’s share option program and its basic conditions, the pre-emptive right to subscribe for new shares belongs to the management board members and key personnel of Harju Elekter and its subsidiaries, as determined by the supervisory board of Harju Elekter, with whom the respective option agreements have been concluded.
5. Harju Elekter’s shareholders, who are not covered by the share option program, shall not have any pre-emptive right to subscribe for new shares issued during the increase of the share capital.
6. The due date for exercising the pre-emptive right of subscription and the due date for subscribing to shares was 25 June 2025. The option beneficiaries submitted their subscription notes in a timely manner. As part of the new share issue of Harju Elekter, 10 option holders did not submit their subscription applications, and 1 option holder subscribed only partially for the options granted under their option agreement. The unsubscribed options, in total amounting to 57,500, will be cancelled.

7. The increase of Harju Elekter’s share capital will not create any exceptions or special rights in connection with the ordinary shares. The new shares to be issued during the increase of share capital shall grant the right to dividend for the financial year starting on 1 January 2025.

All new shares of Harju Elekter issued during the share issue will be listed on Nasdaq Tallinn on the day following the date on which the additionally issued shares with temporary ISINs have been included in the Estonian Central Securities Depository (Nasdaq CSD) together with the previously issued shares with main ISINs.

Tiit Atso
Chairman of the Management Board

+372 674 7400

The Annual General Meeting of Shareholders of AS Harju Elekter Group was held on 24 April 2025 starting at 10 a.m., at the Nordic Hotel Forum. The AGM was attended by 62 shareholders and their authorised representatives who represented a total of 11,354,961 votes, accounting for 61,38 % of the total votes.

The decisions of the General Meeting were as follows:

1. Approval of AS Harju Elekter Group annual report of 2024

Approve the 2024 Annual Report prepared by the Management Board and approved by the Supervisory Board, according to which the total consolidated balance sheet as of 31 December 2024 is 153,7 million euros, revenue is 174,7 million euros, operating profit is 6,4 million euros and net profit is 3,2 million euros.

The number of votes given in favor of the resolution was 11,354,961 which accounted for 100.00% of the voted participants.

2. Approval of profit distribution

To approve the profit distribution proposal of AS Harju Elekter Group of 2024 as presented by the management board and as approved by the supervisory board as follows:

*Dividends will be paid to shareholders on 28 May 2025, by transfer to the shareholder’s bank account. The list of shareholders for the payment of dividends is established on 21 May 2025 as at the end of the business day in the accounting system. The date of the change in the rights related to the securities (ex-date) is 20 May 2025. From this date, the person who acquired shares is not entitled to receive dividends for the financial year 2024.

The number of votes given in favor of the resolution was 11,354,766, which accounted for 100.00% of the voted participants.

3. Amendment of the Articles of Association

Change the business address to Tallinn, the Republic of Estonia and amend the Articles of Association of AS Harju Elekter Group in the form submitted to the general Meeting.

The number of votes given in favor of the resolution was 11,243,911 which accounted for 99.02 % of the voted participants.

4. Remuneration Principles for the members of the Management Board

To approve remuneration principles for the members of the Management Board of AS Harju Elekter Group in the form submitted to the General Meeting.

The number of votes given in favor of the resolution was 11,265,976, which accounted for 99.22 % of the voted participants.

Tiit Atso
Chairman of the Management Board
+372 674 7400

Harju Elekter’s revenue for the first quarter was 37.4 million euros, which is 20% less than in the same period last year. At the same time, operating profit was 2.8 million euros, which is 186% more than in the comparable period. The improvement in operating profit was driven by a number of targeted actions to improve low season profitability, including lower than usual labour costs in the first quarter.

At the same time, net profit was 2.6 million euros, which is 630% more than in the comparable period. The result was impacted significantly by the notable change in the EUR/SEK exchange rate towards the stronger Swedish krona and the resulting revaluation of receivables and liabilities.

Although the Group’s financial results showed signs of improvement, the economic environment is once again full of challenges. This will be influenced by internal political developments in the countries in which we operate, as well as by the overall transformation of world politics. Controversial news from the United States and frequent changes of direction increase customer uncertainty, resulting in many orders being delayed or temporarily put on hold. The Baltic and Scandinavian economies have not yet returned to stable growth, while the tax burden is increasing, and wages are rising.

Despite the turbulent times, we are going into the peak season with a strong order book. Restructuring and organisational changes in recent years have helped to set the cost base, both in terms of overhead and labour costs, in line with expected volumes, while at the same time striving to maintain competence in low seasons.

2025 has the potential to be a strong financial year, which in turn will enable the continuation of the development strategy and support sustainable growth in the coming periods.

Revenue and financial results

Although the decline in first quarter revenue compared to last year’s record sales volumes is noticeable, seasonality in turnover remained at a similar level to before the period of exceptional results. The revenue from the sale of electrical equipment amounted to 34.1 million euros in the quarter, or 91.1% of total revenue, decreasing by 21.6% compared to the same period last year. The main product and service groups continued to be substations, low-voltage distribution equipment, technical buildings, and subcontracting and engineering services.

 Core business and markets

The Group’s revenue for the first quarter of 2025 by markets reflected the overall downward trend in most key markets compared to the same period in 2024. The Group’s four largest target markets – Estonia, Finland, Sweden, and Norway – accounted for a total of 79% of the total quarterly revenue, which is 2 percentage points less than a year earlier.

In Estonia, revenue reached 4.8 (Q1 2024: 4.5) million euros, growing by 7.4% and accounting for 12.8% (Q1 2024: 9.6%) of the Group’s total quarterly revenue. Sales were supported by an increase in orders for compact substations from electricity distribution network customers. Rental income in the real estate segment remained at the same level as the previous year.

The Finnish market continued to be the largest for the Group in the quarter, despite revenues decreasing by 24.1% to 12.9 (Q1 2024: 17.0) million euros. The main reason for the decline was the decrease in the sale of compact substations and the decline in contractual manufacturing volumes.

Revenue in the Norwegian market fell to 6.9 (Q1 2024: 9.3) million euros, decreasing by 26.2% compared to the previous year. The decline was mainly due to the high comparison base from the previous year, when Norwegian revenue was significantly higher. The market downturn also contributed to the decline, resulting in smaller contractual manufacturing new order volumes in 2024 for 2025.

Revenue in the Swedish market decreased by 28.5%, reaching 4.9 (Q1 2024: 6.9) million euros, which was similar to the level of the fourth quarter of 2024. The decline was influenced by a business model change, where the offering of EPC (Turnkey solutions) projects was discontinued. Now focusing on factory-made solutions, sales volume is temporarily smaller, but the company’s risk profile is more stable.

As a significant positive change, the Germany market grew, with revenue tripling due to increased project-based orders in the substation product group, reaching 6.5 (Q1 2024: 2.2) million euros.

Investments

The Group invested a total of 0.8 (Q1 2024: 0.7) million euros in non-current assets during the reporting period, including 0.1 (Q1 2024: 0.4) million euros in investment properties, 0.3 (Q1 2024: 0.1) million euros in property, plant, and equipment, and 0.4 (Q1 2024: 0.2) million euros in intangible fixed assets. Investments included the acquisition of production technology assets and the development of production and process management systems. Investments also included product development.

The value of the Group’s long-term financial investments was 27.7 (31.12.24: 27.7) million euros as of the reporting date. During the reporting quarter, the fair value of remaining securities decreased by 5 thousand euros and proceeds from the sale of listed securities amounted to 17 thousand euros.

Share

The company’s share price on the last trading day of the reporting quarter on the Nasdaq Tallinn Stock Exchange closed at 4.67 euros.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

unaudited

CONSOLIDATED STATEMENT OF PROFIT AND LOSS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Priit Treial
CFO and Member of the Management Board
+372 674 7400

priit.treial@harjuelekter.com

HEG interim report Q1 2025

Harju Elekter OY, a subsidiary of AS Harju Elekter Group signed a contract to dispose its 9,15% holding in IGL-Technologies Oy, a leading Finnish developer of parking and e-mobility solutions and operator of parking and charging systems. The sale of the holding is in line with Harju Elekter’s strategy to focus more on product development and innovation, including the development of its next-generation charger series.

The role of Harju Elekter in the partnership has been the development, production, and sales of charging equipment hardware and the provision of technologically suitable software and operation of equipment at IGL. Harju Elekter and IGL have successfully collaborated for over ten years and will continue their partnership after the transaction.

As the transaction is not significant according to the Stock Exchange Rules, the parties will not disclose the value of the transaction. The transaction is not a transaction with persons connected to the issuer and does not have a significant impact on the operations of Harju Elekter Group. The members of the supervisory board and management board of AS Harju Elekter Group are not personally or in other way interested in the transaction.

Harju Elekter is an international industrial group with extensive experience in providing future proof solutions for electrical power distribution. We engineer, manufacture, and install electrification solutions for utilities, industries, infrastructure, public and commercial buildings. Its factories in Estonia, Finland, Sweden, and Lithuania employ approximately 840 specialists, and the group’s revenue for 2024 was 174.7 million euros.

Tiit Atso
Chairman of the Management Board
+372 674 7400

The Management Board of AS Harju Elekter Group (registry code 10029524, registry address Paldiski mnt 31/2, Keila) convenes the Annual General Meeting of shareholders. The General Meeting will take place on 24 April 2025 at 10:00 a.m. at venue of Nordic Hotel Forum (Capella hall), address Viru väljak 3, Tallinn.

Registration of meeting participants will start on 24 April 2025 at 09:00 a.m. The list of shareholders entitled to vote at the meeting is fixed seven days before the General Meeting, i.e. as of the end of the business day of the Nasdaq CSD Estonian settlement system on 17 April 2025.

Shareholders can vote on the items on the agenda before the General Meeting by e-mail or post. A more detailed overview of how it is possible to vote before the General Meeting, is provided in the section “Organisational issues” of this notice and on the website of AS Harju Elekter Group at www.harjuelekter.com.

The Supervisory Board of AS Harju Elekter Group set the agenda of the following General Meeting and approved the following proposals:

1. Approval of the 2024 Annual Report of AS Harju Elekter Group

Approve the 2024 Annual Report prepared by the Management Board and approved by the Supervisory Board, according to which the total consolidated balance sheet as of 31 December 2024 is 153,7 million euros, revenue is 174,7 million euros, operating profit is 6,4 million euros and net profit is 3,2 million euros.

2. Approval of profit distribution

Approve the 2024 profit distribution proposal of AS Harju Elekter Group submitted by the Management Board and approved by the Supervisory Board as follows:

    The Management Board proposes the distribution of profits as follows:

*Dividends will be paid to shareholders on 28 May 2025, by transfer to the shareholder’s bank account. The list of shareholders for the payment of dividends is established on 21 May 2025 as at the end of the business day in the accounting system. The date of the change in the rights related to the securities (ex-date) is 20 May 2025, from this date, the person who acquired the shares is not entitled to receive dividends for the financial year 2024.

3. Amendment of the Articles of Association

Change the business address to Tallinn, the Republic of Estonia and amend the Articles of Association of AS Harju Elekter Group in the form submitted to the general Meeting.

4. Remuneration Principles for the members of the Management Board

To approve remuneration principles for the members of the Management Board of AS Harju Elekter Group in the form submitted to the General Meeting.

ORGANISATIONAL ISSUES

Shareholders whose shares represent at least 1/20 of the share capital may request that additional items be included in the agenda of the General Meeting if the respective request is submitted in writing 15 days before the General Meeting, no later than on 09 April 2025.

Shareholders whose shares represent at least 1/20 of the share capital may submit a draft resolution on each item on the agenda no later than 3 days before the General Meeting, no later than on 21 April 2025. Further information on the procedure and terms for exercising the rights provided pursuant to section § 287 (right of shareholder to information), subsection 293 (2) (right to request inclusion of additional items on the agenda and subsection 293¹ (3) (obligation to submit a draft resolution or a substantiation simultaneously with the demand on the modification of the agenda) and subsection 293¹ (4) (right to submit a draft resolution in respect to each item on the agenda) has been disclosed on the website of AS Harju Elekter Group at www.harjuelekter.com. This is also where draft resolutions submitted by shareholders and the substantiations of the resolutions, if any, are also disclosed.

The documents of the annual general meeting of AS Harju Elekter Group, including the annual report, the sworn auditor’s report, the profit distribution proposal, the report of the Supervisory Board, Articles of Association, remuneration principles and the draft resolutions of the items on the agenda are available on the company’s website at www.harjuelekter.com or at the website of Nasdaq Baltic https://nasdaqbaltic.com/. Questions regarding the items on the agenda can be submitted to the e-mail address yldkoosolek@harjuelekter.com. Questions, answers, and positions of the meeting are published on the company’s Internet website.

Appointment of a representative. Prior to the General Meeting, a shareholder may announce the appointment of a representative and the revocation of the power of attorney granted to the representative by sending an e-mail to yldkoosolek@harjuelekter.com or by mail the said document(s) no later than on 21 April 2025 at the AS Harju Elekter Group office at A. H. Tammsaare road 56 (3rd floor), Tallinn 11316. A shareholder may use power of attorney forms to authorize a representative available on the website of AS Harju Elekter Group www.harjuelekter.com.

If voting prior to the General Meeting, shareholders are requested to fill in the ballot papers available on the website of AS Harju Elekter Group at www.harjuelekter.com and attached to the stock exchange announcement convening the General Meeting. When voting by e-mail, the completed ballot papers must be digitally signed and sent by e-mail to yldkoosolek@harjuelekter.com no later than by 23 April 2025 at 11:00 a.m.

When voting by mail, the completed ballot papers must be signed by hand and sent with a copy of the personal data of the signatory’s identity document by mail no later than by 23 April 2025 at 11:00 a.m. to the address of AS Harju Elekter Group, A. H. Tammsaare road 56 (3^rd floor), Tallinn 11316.

Ballot papers received after the above deadline shall not be considered. If a shareholder submits several completed ballot papers, the ballot paper with the latest digital signature time stamp or time of mailing shall be deemed valid. All previously submitted ballot papers shall be deemed invalid.

If the shareholder who submitted a ballot paper before the General Meeting also physically participates in the General Meeting, all ballot papers sent by the shareholder before the General Meeting shall be deemed invalid. The exact procedure for voting prior to the General Meeting is provided in the shareholder information document available on the website of AS Harju Elekter Group at www.harjuelekter.com and in the stock exchange announcement convening the General Meeting.

To register participants physically attending the General Meeting the following is required: shareholder who is a natural person – identity document; representative of a shareholder who is a natural person – identity document and a power of attorney in written form; legal representative of a shareholder who is a legal person – an extract from the relevant (commercial) register where the legal person is registered and an identity document of the representative; contractual representative of a shareholder who is a legal person shall submit a power of attorney in written form in addition to the documents specified above. Please legalise or apostille the documents of a legal person registered abroad in advance, unless otherwise provided by an international agreement. AS Harju Elekter Group may register a shareholder who is a foreign legal person as a participant in a General Meeting even if all the required information about the legal person or its representative is contained in a notarised power of attorney issued to the representative abroad and that power of attorney is acceptable in Estonia. Please present a passport or ID Card as an identity document.

Questions regarding the general meeting, also about voting, can be submitted to the e-mail address yldkoosolek@harjuelekter.com.

AS Harju Elekter Group Annual Report 2024

AS Harju Elekter Group Supervisory Board Report 2024

AS Harju Elekter Group Articles of Association 24.04.2025

Remuneration principles for members of the Management Board of AS Harju Elekter Group 24.04.2025

Information on the voting prior to the Annual General Meeting 24.04.2025

AS Harju Elekter Group Ballot Paper 24.04.2025

AS Harju Elekter Group power of attorney template 24.04.2025

AS Harju Elekter Group withdrawal of the authorization 24.04.2025

Tiit Atso

Chairman of the Management Board

+372 674 7400

AS Harju Elekter Group presents its consolidated audited Annual Report for 2024 prepared by the Management Board and approved by the Supervisory Board. Compared to the unaudited interim report published on 20 February 2025, there are no differences in the audited financial results.

The consolidated audited revenue for the year 2024 was 174.7 million euros, the operating profit was 6.4 million euros and net profit 3.2 million euros.

The original audited Annual Report 2024 document is submitted in machine-readable .xhtml format to the Nasdaq Tallinn Stock Exchange and digitally signed (link: https://nasdaqbaltic.com/statistics/en/instrument/EE3100004250/reports).

HEG-Annual-Report-2024.pdf

Harju-Elekter-Group-aastaaruanne-2024-EST-ESEF.zip

Tiit Atso
Chairman of the Management Board
+372 674 7400

The fourth-quarter results of Harju Elekter continued to be affected by low order volumes. Although the decline in orders could be foreseen as early as the spring of 2024, it had a larger-than-expected impact on fourth-quarter revenue, which declined significantly. The decline in revenue presented a challenge in terms of covering overhead costs and maintaining profitability. However, further reductions in overhead costs, in particular staff costs, would have affected competence and limited opportunities for the sustainable growth of business volumes. Nevertheless, the group continues to operate in savings mode, carefully considering each expense and investment.

On the positive side, the volume of sales orders increased in the fourth quarter. As previously predicted, its impact will not be noticeable until the peak production season, which will be in the second and third quarters of 2025. Therefore, the low season in economic results is expected to continue in the first quarter.

Although the results of the preceding financial year fall short of expectations, it should be noted that the group has managed to exceed the revenue and operating profit of 2024 on only two occasions in the past. However, this is no reason to be satisfied. It is the priority of the Management Board to improve performance results in the coming years. The new strategic plan approved by the Supervisory Board at the beginning of 2025 creates the necessary prerequisites for achieving this objective, considering both market trends and growth opportunities for electrification.

The Management Board of Harju Elekter will propose the distribution of dividends in the notice for calling a general meeting, based on the business volumes at the beginning of the year and the forecast for 2025.

Revenue and financial results

The fourth quarter was challenging for the Group, but the stability achieved in the preceding months helped to maintain a positive result for the full year. Quarterly revenue decreased by 41% year-on-year, amounting to 30.0 (2023 Q4: 50.7) million euros, reflecting the stabilization of order volumes and adaptation to changing market conditions. The revenue for the reporting year was 174.7 (2023: 209.0) million euros. Although the revenue decreased, the Group maintained a strong market position despite a challenging economic environment.

Core business and markets

Sales of electrical equipment, which constitute the group’s main area of business, reached 26.6 (2023 Q4: 46.7) million euros in the reporting quarter, representing a 43.0% decrease. For the full year, the revenue from electrical equipment totaled 161.2 (2023: 194.7) million euros, a 17.2% decline compared to the previous year. The main reasons for the decline were the decrease in outsourcing service orders due to the cooling of the global economy and the decline in demand in the substation market due to regulatory changes.

The Group’s four main target markets—Estonia, Finland, Sweden, and Norway—accounted for 85.6% (2023 Q4: 78.4%) of total revenue in the reporting quarter. Year-over-year, revenue growth was recorded only in Estonia, being 23.0 (2023: 20.9) million euros, while other key markets showed signs of stabilization following high activity levels in previous years.

In Estonia, revenue remained at the previous year’s level in the fourth quarter, reaching 5.3 (2023 Q4: 5.2) million euros. Growth was mainly driven by higher sales of compact substations to electricity distribution network customers, as well as a low comparison base from mid-2023, when the new framework agreement was still gaining momentum.

In Finland, revenue for the last quarter was 12.4 (2023 Q4: 19.6) million euros, marking a 36.7% decline compared to the previous year. On an annual basis, revenue fell by 19.7%, amounting to 66.9 (2023: 83.3) million euros. The decline was primarily due to lower demand in the compact substation segment, which was affected by regulatory changes in the electricity network sector, as well as weak market conditions for electric vehicle chargers and the Group’s exit from the solar panel resale segment.

In Norway, revenue decreased by 42.9% in the fourth quarter, reaching 3.3 (2023 Q4: 5.7) million euros. Over the full year, revenue declined by 22.1%, amounting to 26.3 (2023: 33.8) million euros. The decline was primarily due to a high comparison base from the previous year, when the Lithuanian production unit experienced near maximum capacity workload due to the project-based nature of the sector.

In Sweden, a similar trend was observed as in other Scandinavian markets, with revenue declining by 49.2% in the fourth quarter to 4.7 (2023 Q4: 9.2) million euros. Annual revenue amounted to 26.0 (2023: 32.5) million euros. The main reason for the decline was a change in the business strategy, which involved discontinuing EPC projects, or turnkey solutions, and shifting focus to factory-made solutions.

Investments

During the reporting year, Harju Elekter invested a total of 3.8 (2023: 6.9) million in non-current assets, including 1.8 (2023: 5.2) million in investment properties, 0.9 (2023: 1.4) million in property, plant, and equipment, and 1.1 (2023: 0.4) million euros in intangible assets. The investments included large-scale renovation and reconstruction work at the Keila industrial park, aimed at meeting the needs of the long-term tenant. Additionally, production technology assets were acquired, and production and process management systems were developed.

As of the reporting date, the value of the Group’s long-term financial investments was 27.7 (31.12.23: 29.2) million euros. In the second quarter, most of the listed securities were sold. The fair value of securities declined both in the reporting quarter and throughout the year, decreasing by a total of 71 thousand euros.

Share

The company’s share price on the last trading day of the reporting quarter on the Nasdaq Tallinn Stock Exchange closed at 4.58 euros.

Interim Report Q4 2024

Priit Treial
CFO and Member of the Management Board
+372 674 7400

priit.treial@harjuelekter.com

On 19 December 2024, Harju Elekter Group’s Swedish subsidiary Harju Elekter AB signed a new 3- year framework agreement with on the largest Swedish distribution network company E.ON Energidistribution AB with the term of 31.12.2027, according to which approximately 2000 substations will be delivered. The total volume of the agreement is nearly 15 million euros.

The substations will be produced in the factory of Harju Elekter in Estonia.

E.ON Energidistribution AB is the largest electricity distribution company in Sweden, with more than 44,000 substations in its electricity network. Countrywide, E.ON Energidistribution AB provides electricity to over 1,000,000 private and corporate customers in Sweden. Its parent company, E.ON, is an international privately-owned energy supplier focusing on renewables, energy networks, and customer solutions, which are the building blocks of the new energy world.

 Harju Elekter is an international industrial group with extensive experience in providing future proof solutions for electrical power distribution. We engineer, manufacture, and install electrification solutions for utilities, industries, infrastructure, public and commercial buildings. The entities of Harju Elekter Group in Estonia, Finland, Sweden, and Lithuania employ around 840 people, and the Group’s revenue in nine months of 2024 was 145 million euros.

 Tiit Atso

Juhatuse esimees

Tel 674 7400

Additional info:

Martin Frank, Harju Elekter AB, managing director, phone: +46 76 134 50 80

Alvar Sass, AS Harju Elekter, managing director,  phone: +372 53933039

AS Harju Elekter Group informs that in the year 2025, the consolidated financial results will be published as following:

2024 interim report 4Q results                      20.02.2025
2025 interim report 1Q results                      24.04.2025
2025 interim report 2Q results                      24.07.2025
2025 interim report 3Q results                      30.10.2025

The annual general meeting of shareholders is scheduled for 24 April 2025.

After their release through the stock exchange information system all Harju Elekter’s announcements are also available on the company’s internet homepage at www.harjuelekter.com.

Tiit Atso
Chairman of the Management Board
+372 674 7400

The Supervisory Board of AS Harju Elekter Group decided, in line with the approval of the Group’s new development strategy, to recall all current members of the Management Board – Tiit Atso, Priit Treial and Aron Kuhi-Thalfeldt – on 31/12/2024. The recall is linked to the strategic decision to expand the Management Board to five (5) members and to allow members to start the new period on an equal term.

As of 1 January 2025, the Management Board of AS Harju Elekter Group, with a term of office of three (3) years until 31/12/2027, will consist of:

Tiit Atso – chairman of the management board

Priit Treial – financial management

Aron Kuhi-Thalfeldt – real estate

Erko Lepa – manufacturing and supply chain

Tiit Luman – sales, marketing and product management

Tiit Atso and Aron Kuhi-Thalfeldt have been members of the management board of Harju Elekter since 2016, Priit Treial since 2022.

Erko Lepa (born 1981) joined Harju Elekter in autumn 2021 and is responsible for production and strategic purchasing in Harju Elekter Group. Previously, he has worked at ABB in various positions starting as a product development engineer and ending as a transformation lead responsible for the global transformation of ABB’s motor and generator business. He holds a master’s degree in electric drives and power electronics from Tallinn University of Technology. Erko Lepa is a shareholder and member of the Management Board of LepaTec OÜ. Erko Lepa owns 23 shares in AS Harju Elekter Group.

Tiit Luman (born 1986) has worked at Harju Elekter since 2008 as Sales Director and Head of Strategic Partnership and responsible for marketing, product, and sales management in Harju Elekter Group. He holds a master’s degree in business finance and electrical power engineering from Tallinn University of Technology. Tiit Luman does not own shares in AS Harju Elekter Group.

The expansion of the Management Board will provide a solid basis for the implementation of the strategic objectives during the period 2025–2027 and reflects the Group’s growth ambitions and focus on even more efficient production and sales. The Supervisory Board of AS Harju Elekter Group is convinced that the new Management Board will contribute to increasing the Group’s competitiveness and achieving a strong market position in both domestic and foreign markets.

Harju Elekter is an international industrial group with extensive experience in providing future proof solutions for electrical power distribution. We engineer, manufacture, and install electrification solutions for utilities, industries, infrastructure, public and commercial buildings. The entities of Harju Elekter Group in Estonia, Finland, Sweden, and Lithuania employ around 840 people, and the Group’s revenue in nine months of 2024 was 145 million euros.

Tiit Atso
Chairman of the Management Board
+372 674 7400

From today, the head office of AS Harju Elekter Group is located in Tallinn. In relation to that, from 18 November 2024, the address of AS Harju Elekter Group is Tammsaare road 56, 3^rd floor, 11316 Tallinn.

In order to change the legal address in the business register, the articles of association of AS Harju Elekter Group must be changed, which will be submitted to the shareholders for approval at the  regular general meeting in the spring of 2025.

The Estonian factory of the Harju Elekter group continues to operate in Keila Tööstusküla, and the rest of the group’s contact information remains the same.

Harju Elekter is an international industrial group with extensive experience in providing future proof solutions for electrical power distribution. We engineer, manufacture, and install electrification solutions for utilities, industries, infrastructure, public and commercial buildings. The entities of Harju Elekter Group in Estonia, Finland, Sweden, and Lithuania employ around 840 people, and the Group’s revenue in nine months of 2024 was 145 million euros.

Tiit Atso
Chairman of the Management Board
+372 674 7400

Third quarter results for Harju Elekter were in line with expectations. The decline in the volume of orders, which started in the spring, had a significant impact on revenues, which fell by almost a third during the reporting quarter. In order to maintain strong profitability, the Group’s companies used several cost-saving measures, an important part of which was the adjustment of the number of employees in line with the business volumes. During this year, the number of employees in the Group decreased from 956 to 841. The company has been able to reasonably reduce labour costs and simultaneously optimize general administrative expenses.

At the end of the third quarter, we once again saw a new increase in order volumes, but these will be largely reflected in revenues in the spring and summer of the new year. It is clear that there will be at least two more difficult quarters ahead. We must continue to pursue the course of reasonable savings, without losing the high level of competence that will ensure success in the periods ahead.

We are about to begin preparing the 2025 budget. In the near future, the strategic development plan for years 2025–2030, prepared by management, will also be approved. We continue to see good opportunities for growth in both business volumes and profitability in our sector.

At the end of 2024, the parent company of the Harju Elekter Group will move from Keila to the Tondi business district of Tallinn. We began to change the role of the Group’s parent company two years ago by establishing a reasonable level of sector-specific management in the Group’s companies. One of the functions of the Harju Elekter Group is to manage all subsidiaries with equal attention. The financial results of the last two years are a testament to the success of this management model, and the move to Tallinn represents a fitting end to this phase of change.

Revenue and financial results

The revenue decline in the third quarter was influenced by a decrease in core business orders and the stabilization of previously increased order volumes in key markets.   The nine-month total results achieved exceeded the corresponding period in last year thanks to the strong financial performance achieved by the Lithuanian, Estonian, and Finnish business units in the second quarter. The growth in profitability was driven by the unravelling of supply chain difficulties in the previous year, higher order volumes in the second quarter, and optimisation of the number of employees. In the reporting quarter, revenue was 41.2 (2023 Q3: 56.2) million euros and for the nine months, it was 144.7 (2023 9M: 158.3) million euros.

 Core business and markets

Revenue from the production segment, the core business decreased by 28.1% in the third quarter compared to the previous year and by 8.6% over the nine-month comparison. The production segment generated revenue of 38.5 (2023 Q3: 53.6) million euros in the third quarter and 137.2 (2023 9M: 150.2) million euros over nine months. Sales of electrical equipment accounted for 93.4% and 94.8% of the group’s revenue for the quarter and for the nine months, respectively. The decline in revenue was primarily due to a reduction in orders in the company’s key markets, which is linked to decreased orders from distribution networks and contract manufacturing works for the second half of the year.

The Group’s largest target markets—Estonia, Finland, Sweden, and Norway – accounted for 84,3% of the total revenue in the third quarter. In the reporting quarter, the group earned 6.4 (2023 Q3: 5.1) million euros from the Estonian market, which is 24.5% more than the previous year. As a result, the revenue over nine months also grew by 13.4%, reaching 17.7 (2023 9M: 15.6) million euros. The increase in sales in Estonia was mainly driven by higher sales of compact substations to electricity distribution network customers.

Revenue from the Finnish market decreased by 17.7%, reaching 16.9 million euros, compared to 20.5 million euros in the same period last year. Over the nine months, the decline was 14.5%, resulting in revenue falling to 54.5 (2023 9M: 63.7) million euros. The decline in revenue in Finland was due to lower demand for compact substations, resulting from changes in utility price control methods implemented at the beginning of 2024 and also by a decrease in sales of electric vehicle charging stations and solar energy solutions.

Revenue from the Norwegian market halved compared to the third quarter of the previous year. In the reporting quarter, revenue was 5.7 (2023 Q3: 12.6) million euros, and over nine months, a total of 23.1 (2023 9M: 28.1) million euros. The largest decline occurred in the sales of drive cabinets and motor control centers to contractual customers in the maritime sector.

Similar to other Scandinavian countries, the group’s revenue in the reporting quarter also declined on the Swedish market, decreasing by 26.1% compared to the previous year. The quarterly revenue was 5.7 (2023 Q3: 7.7) million euros, and over nine months, it reached 21.2 (2023 9M: 23.3) million euros. The main reason for the revenue decline was significant changes in the business model, including the decision to discontinue the sale of EPC projects, or turnkey solutions, and to focus on factory-made products.

Investments

During nine months, Harju Elekter invested a total of 2.8 (2023 9M: 5.0) million euros in non-current assets, including 1.4 (2023 9M: 4.2) million euros in investment properties, 0.7 (2023 9M: 0.6) million euros in property, plant, and equipment, and 0.7 (2023 9M: 0.2) million euros in intangible assets. The investments included large-scale renovation and reconstruction work at the Keila industrial park, aimed at meeting the needs of the long-term tenant, Prysmian Group Baltics. Additionally, production technology equipment’s were acquired, and production and process management systems were developed.

As of the reporting date, the value of the Group’s long-term financial investments was 27.7 (31.12.23: 29.2) million euros. In the second quarter, most of the listed securities were sold. The fair value of the remaining securities slightly increased in the reporting quarter but decreased by 66 thousand euros over nine months of the reporting year

Share

The company’s share price on the last trading day of the reporting quarter on the Nasdaq Tallinn Stock Exchange closed at 4.66 euros.

Priit Treial
CFO and Member of the Management Board
+372 674 7400

priit.treial@harjuelekter.com

On 29.09.2023, AS Harju Elekter Group and Reinvent OÜ concluded a contract of sale of a share in a private limited company, in which AS Harju Elekter Group acquires a 19.48% share in Energo Veritas OÜ. As a result of the transaction, AS Harju Elekter Group will become the sole shareholder of Energo Veritas OÜ, holding the sole share of Energo Veritas OÜ with a nominal value of EUR 2,500.

A part of the Harju Elekter Group, Energo Veritas OÜ is a company that provides electrical materials and equipment, including technical consultancy and development of solutions, bundling of goods according to the customer’s requirements and deliveries to the construction site. In line with the strategy of AS Harju Elekter Group to focus on the production of its own factory, the purpose of the transaction is to discontinue the retail and wholesale activities of Energo Veritas OÜ.

As the sole shareholder of Reinvent OÜ, Kristo Reinhold, is a Member of the Management Board of Energo Veritas OÜ, the transaction qualifies as a transaction with related parties and is not a material transaction for the purposes of the Rules and Regulations of Nasdaq Tallinn Stock Exchange. The members of the supervisory board and management board of AS Harju Elekter Group are not personally or in other way interested in the transaction.

As a result of the transaction, Kristo Reinhold will be recalled from the Management Board of Energo Veritas OÜ as of 30.09.2023, and Aron Kuhi-Thalfeldt, a Member of the Management Board of AS Harju Elekter Group and Head of the Real Estate Unit, will be appointed as the new Member of the Management Board.

Harju Elekter is an international industrial group with extensive experience in providing future proof solutions for electrical power distribution. We engineer, manufacture, and install electrification solutions for utilities, industries, infrastructure, public and commercial buildings. The entities of Harju Elekter Group in Estonia, Finland, Sweden, and Lithuania employ around 1000 people, and the Group’s revenue in the first six months of 2023 was 102 million euros.

Tiit Atso

Chairman of the Management Board

+372 674 7400