Qt Group Oyj

Hello everybody and welcome to QT Group's Q3 2026 results presentation. My name is Herta Nervanen. I'm the communications lead at QT Group. I'm here today with Juha Varelius, our CEO and our CFO Ann Zetterberg, who will be presenting the results. After the presentation, we have time for questions, first starting from the room and then if time permits from the line. That's enough of me. Now I'll give the stage to Juha. Please go ahead.

Good afternoon everyone and welcome to QT Group's Q3 results. We're going to go through the very traditional business highlights and financials by Ann and I'm going to talk about the outlook and guidance for 2026. So if we go on this current quarter, we had a Thank you very much. on that we that does include a one-off cost of 5.3 million which was for these change management negotiations we still have some way to go on those but the kind of a minor thing to close so our expectation or we you know that All the one-off costs. So there won't be any more on those on fourth quarter or later on this particular process. So I do expect that we're going to close that process during this quarter pretty much. And on the ARR growth was the 32% but that's of course IAR effects pretty much on that one so we did have a pretty good growth on Qt license sales as well and the if we look on the license sales the we we do have a bit of a fluctuation on different regions so this time the best performing region was really on the Europe APAC was a good second and like we've had now some time the USA has been the slowest moving on our regions and the if we look on the Mark, on the segments, there is not a whole lot of change on that. As you know, we are on 70 different industries and medical and defense, well, defense is particularly hot segment globally overall now. If we look in the medical, medical is usually very long-term business. So they look beyond the kind of economic downturns or upturns. They have a very solid long-term plans. And if we look automotive, it's kind of a mixed bag in a way that in China and APAC, our automotive is doing pretty well. and obviously our customers in Europe and US are a bit suffering. On renewals, we've always had a fairly stable churn. It's a relatively low churn. So people that sign up for Qt usually renew and that's well, the product is good and usually when people start developing with some products they don't do a kind of a running changes they they go with the one product all the way through the product life cycle that's a very typical thing but we do have a very long lasting customer so the ones that have started using Qt way back when are still doing that so the that renewal rate hasn't changed well I remember during the spring they were going to reduce the number of developers. Well, we haven't seen that. The renewal rates, if we look, people are pretty much renewing. What they've been renewing, what they've been having licenses, so we don't see AI effect on that. We do see people using AI, of course, say a tool helping them, but we haven't seen reductions on the developer license use because of AI. If we look on the, where do we see usually people Thank you very much. Thank you very much. And it means that you need to have DOCs and kind of a lot of documentation and you need to support your product at least five years that it stays cyber secure when using Qt 6.12. or beyond, you get DOC from TQ. And so it helps a lot for our customers on that. So particularly customers, if somebody's been using open source before and thinking that doesn't need a commercialized point. IAR subscription has been going well. Well, that's kind of expected because in the beginning Thank you for watching! Thanks for watching! The, you know... Many things have been integrated continuous, but I don't expect any trouble or problems on that front. So I would say that the integration risk is more or less already behind us in that sense. Of course, when you buy a big company like we did on IAR, there is always a risk that there comes all kinds of integration hassles. But it's been amazingly smooth, I must say. probably the Nordic culture and the closeness helps as well. So Well, I'm going to talk more about when on the future outlook, if we look on what happened during the third quarter. Well, of course, there was a bit of a turmoil in oil prices and whatnot, and a bit of a war going. Well, that war started earlier, but during the third quarter, that's what's going to happen. Usually, now, but if I looked at the on different product groups, maybe a bit more one year license sales than three year license sales, but no significant numbers of changes over there. So in that sense, a pretty typical quarter for us. No big surprises. I think, like I said already on the second quarter, that we've seen the... Thank you very much. Like I said on the change negotiations or this change we did, we said that we're looking for 20 million cost savings and that is going to happen. So like I said, we have a few small minor things in Europe to close and then the whole process is closed. So that 20 million cost saving is going to happen. When you look next year, of course, we're going to be investing next year. So don't make an estimation that our cost level will be this year cost level minus 20. I mean, you know, business does go forward, but from this year current run rate, 20 million will disappear. which means that we announced then that we're looking to downsize roughly 200 people and that was mainly some in US and not affected a whole lot at all. And we're going to get into that 200 number or very close to it when the whole thing is over. So that's where the maturity of the 20 million comes from. So more about the future outlook, but now I'll let Ann go through the numbers in a bit more detail.

Yes, hello.