White Pearl Tech Grp B

I have most of our senior managers who will present and answer your questions. Without further delay, then, I hand over to our CEO, Mr. Marko Marangoni. Please go ahead, Marko.

Thank you, Peter. Welcome to the meeting. I think we can start with the presentation. Okay. First of all, it's important to underline what we finally closed in terms of with the third quarter of 2025. Analyzing and checking the results of the whole year, I think we had a really stunning stunning result in terms of revenue in terms of profitability and then of course also if we consider the value of of the shares we also created I think a nice development in terms of in terms of value so if I have to make a And if you allow me to underline, I would like to underline what we created, what we did in 2025. And the core Q4 is basically just the last, the final part of the year. and quarter by quarter we had good results in terms of revenue and in terms of in terms of profitability so maybe it's not this is the moment to make the final analysis of the year but it's important because it's already visible which kind of result we are expecting in our annual report so As a CEO, I'm really happy about the results we had. I'm happy about the work we did. And this is something that it's because we have a really good, really good team. I mean, in administration, in sales, technical, so in every area, we did all the best. Before to move to the next slide, it's important to say that result that we achieved in terms of revenue is in line of our what we shared with the shareholders in terms of forecasting the planet in the next in the next year so until 2028 we are going in the right direction and we we will do that that also in this year during this year i'm sure that so Maybe we can move to the next slide. Okay, here is an interesting slide for explaining something interesting in terms of growing and development of the different areas. So we are talking about the organic and inorganic area. I think it's interesting to see that in terms of revenue contribution, in terms of growth contribution in the revenue KPI, we had, I think, an interesting contribution coming from especially the inorganic, sorry, in terms of revenue, the organic And inorganic is pretty much a specific rate. So 30% of the revenue is coming from, especially from the organic, and 70% from inorganic. But if we make a comparison in terms of margins, I think it's interesting to see that 60% of the margin is coming from and the profit is coming basically from the organic segment versus 32% of being organic. It's a very clear explanation. Our program and our execution in terms of cross-selling is working really hard in a really good way and is producing really good results in terms of with our customer base. With the inorganic organization where we're still working in order to align their politics, their strategy, their commercial activity with the other remaining groups, we are working in order to move them in the same, having the same results that we have. We're going to be having with our historical base of facilities. So it's true, maybe we can see an interesting analysis in this slide where definitely we are doing a really good business with our customer base. And we are having basically really good results in terms of profit. The inorganic base is producing, yes, is giving us a really good rate contribution in terms of revenue, but it's a little bit under because it's still working in progress in order to move them in the same level we achieved with our current subsidiaries. So it's a work, it's a journey that will improve yearly, every year, month by month, quarter by quarter. So this is another reason because we are planning in 2026, of course, another kind of result. so um let's move to the next uh okay another concept that we introduced in 2025 but i think it's important also to share to share it with you is the is our idea as a platform so we created the platform covering different areas this platform is of course is supporting all uh on the group on the subsidiaries in the group but also is supporting all the um the change the the integration of the new units, the new business units inside our group. What we are doing through our teams like the shared services that we have currently in different countries or through the expertise we can provide through our managers in in sales and compliance and technical is what we are able to do is basically to give and build the condition to different, to have an acceleration and provide the same condition to also the new acquisitions. So White Pearl is mostly dedicated to use our resources, you know, also our IPs, of course, are part of this concept in order to speed up the business, but also in order to make bigger and bigger the new acquisitions and of course have achieved the results that we already consolidated in the original areas where we started with our business. So I think it's an interesting concept. For this reason, we are not directly connected with specific, we are not aiming today to acquire the specific areas. We are mostly interested in order to extend our capability in terms of business with our customers and where we have, for instance, a nice a nice introduction in the territory. But according to our strategy, of course, and as we can see in the next slides, the main purpose is to develop the Nordics and European markets where we consider that it's one of the main target that we have and where we think we will go for the future. So in this slide, there is another indicator, I think it's really nice, and it's the transformation, where we are going. If we make a comparison in the past, we are growing faster, the software and platforms area. And this is basically the area where we have highest margins, but also where we are today, a nice concentration of IPs, such as, for making an example, the most representative product, Nexus Artificial Intelligence. But this is also the place where is concentrated the recurrent revenue. So the fact that we are developing this area, it's something that we need to consider really part of our journey to have a better and consolidated result for the next few years. In the other segments, we are going, we are making slowly, we are basically, we are going a little bit down, but it is because we are really focused in the innovation. in the recurrent revenue, in platforms, and especially in something that is part of our portfolio. So it's part of our portfolio of IPs. So this is what we are doing. If we consider the past, you can easily see that there is an interesting change. Okay, let's move on. Okay. And talking about the distribution, I think this is another point Geographic distribution of the revenue. This is something that is already is still confirming what I'm saying. So as you can see, we are moving faster in the development of the Nordics market and Our consolidation is, of course, our core market is still in the countries where the economy is definitely is giving us a lot of opportunities, such as Africa or Middle East or Asia Pacific or or even in Latin America where we are just at the beginning of the journey but it's pretty much easy to see that we are growing making a comparison with the last year faster in the Nordics and we are not considering also the new acquisitions. So next year will be interesting because this rate will be bigger and of course it will take more and more space in comparison with the original markets where we started. So the plan to, again, the plan to develop the Nordics and European markets is absolutely started, is producing the first results. So we are going there with innovation and and a specific line of business such as the platforms and with a recurrent revenue so everything is as you can see um is is definitely in progress according to our expectation and according to our plan of development okay let's move but i think i think i i made i i i defined that my My presentation about this to provide you a snapshot, a vision about what we did in the last quarter, but we have strong influence related to the fiscal year. So I think now we are able to provide you more details about our figures and the numbers related to Q4 and the 12 months results.

Thank you very much, Marco. With that, I hand over to Shetan Ottam, Group CFO and Hans Hegg, our CEO of WPTG AB, the mother company. So please, I think it's Shetan to start, or...

Yes. Thank you, Peter. Thank you, Marco. Hello, everyone. As Peter mentioned, my name is Chetan Otun. I'm the Group CFO. WhiteBull, at a glance, we operate through 40 subsidiaries in 22 countries in six continents. We have approximately 950 people and we service over 200,000 customers. We are listed in Sweden and the USA. Peter, next slide, please. In terms of our 2025 financial performance, our revenue increased by 65% from $310 million to $510 million. Our EBITDA increased by 72% from $15 million to $86 million. We've got the EBITDA increase in margin at 0.8% from 16.1% to 16.9%. the earnings per share increased from 0.83% to 2.44 sec. That's represented by a 199% increase in the EPS. In terms of the EBITDA, while there's been a slight dip in Q4, Overall, like I've demonstrated in the previous slide, we have increased our EBITDA year on year. What tends to happen in the Q4 is we bring in certain annual provisions once certain of the discussions have taken place, like the auditor's fees, etc. And in our approach, we've been very conservative in terms of expensing our acquisition costs and our acquisition earnouts, etc., When you collectively look at these costs, it represents almost over 3 million SEC. And this is quite a large number when you're looking at the EBITDA just for the quarter. However, if you look year on year in terms of our performance throughout the year, this is by no means any structural concerns in terms of where our EBITDA is or where our targeted but there is in terms of the business and in terms of what we are able to achieve through vital technology growth thank you next slide please um i think the strong performance is further enhanced in terms of our increase in operating cash flows we were up 366 percent from 16 million sec to 70 million sec Our cash position increased by 206%, up from 23 million SEC last year to over 72 million SEC this year in the bank. This is largely attributable in contribution by improved client terms, payment terms, collections, coordinated delivery efforts amongst the businesses, etc. Thanks, everyone. I'll hand over to Hans Haag, my colleague in Sweden. Thank you.

Thank you, Kjartan. My name is Hans Haag. I'm the CFO of the Swedish parent company and also the Swedish companies that are growing now. I will continue with the balance sheet. We had a very good year. The debt equity ratio improved this year from 38.4% to 28.5% on a year-to-year basis. And the total equity then increased from 123.6 million in the end of 2024 to now 235 million. It's up 90.3%. that is all over the balance sheet is very good numbers. Current assets rose to slightly 116 million. It's from 97.6 million at the end of 2024. It's up 18.7% and that's due to increased in project stone based revenue. The total assets is now 329 million from 188.6 million at the end of 2024. That's up 75% almost. That is based on both inorganic and organic growth. And the sales outstanding has also improved this year. We have gone from 96 days down to a little bit under 60 days. And that's signifying quite quicker cash conversion. This is also evident from working capital as it increased at a much slower pace compared to the revenue in the full year 2025. Thank you. And over to you, Peter or Oskar. I don't know.

Thank you, Hans and Kerstin. With that, I hand over to one of our newest colleagues in the management team, Oskar Carling, who has recently joined us as chief investment officer. Please go ahead, Oskar.

Thank you, Peter. Yeah, my name is Oskar Carling. I'm the new chief investment officer since the beginning of this year. If we're talking about 2025, White Pearl really hit an inflection point. with building a European hub for multiple acquisitions and also free LOIs. So we get more boots on the ground that we can see here. If we see in the beginning of 2025, it was not so much people here in Europe. So we have a really strong leadership structure here. This takes us closer to the acquisition targets, customers, and entrepreneurs, so we can be faster and execute faster. And it's already visible in the numbers. You can see that Europe now represents about 29% of the revenue. So that's really, really good. You can change slides, Peter. Here's a couple of the acquisitions that we did last year. If we're looking at Adligo, it gives us strong IP and recurring revenue with a solid customer base in real estate, SME companies and also governance contracts. If you're looking at the Sri Lankan team, they give us good cost-efficient offshore engineering with front-end, back-end, etc. So it gives us good leverage to the rest of Sweden and other parts of the world. Crobier, it's strong senior cloud DevOps infrastructure engineers. So it's a really, really good add-on. And Luminary adds some high quality consultancy brokers model with the matching clients to really good clients in banking and finance. And Newport as well as a good ERP in SAP experts as well. We can change slides. If you look at the three LOIs that we have today, we have two in Bulgaria. CreativeX brings us a digital agency with a clear AI focus, helping SME in this region and also going to give us leverage in Sweden and the rest of Europe, cost leverage. And Native, working one of the first company in experts in short form video through TikTok, Reels, YouTube, where the demand is growing fast. So they're also going to give us help in the shared services vehicle we have in the company as well. ISKCON adds deep experts in consultancy in application specialist, integration, communication and security. Also give us another geographic point in Sweden. They have office in Gothenburg and Umeå. So we're also growing geographically in Sweden with them. So we can change. And if we look at... 2026 and forward here, we can see that the M&A is still going to be the engine of growth. We have clear focus on Sweden and Europe. We're going to have a high activity and a growing pipeline, but we need to stay disciplined and the profitability and cash flow comes first, of course. We will realize synergies through cross-selling, up-selling, leapfrogging and shared services to unlock value. We keep up building capacity in Europe to support more acquisitions and accelerate value creation. And of course, with more acquisitions in Europe and Sweden, we want to reach a higher valuation. These revenue profiles are typically valued higher in multiples than other parts of the world from Swedish investors. And finally, we increase IR activity to improve market visibility and strength the investment case. So we're going to have a lot more higher IR activity this year. So through these acquisitions, but with strict profitability and clear European value creation logic. So yeah, we're going to build We're going to grow more from this 20% for revenue today, this year, and this is the target that we're looking into. So, yeah, it's really nice to join White Pearl from the spotter groups company that White Pearl Accuses in December. So thank you very much.

Thank you very much, Oskar. That concludes our presentation. And we are now open to take your questions. If possible, I would advise you to write your question in the meeting chat. But we can also use the raising of hand function. First question comes from Daniel Karlsson. He asked us to comment on the nine month impairment this quarter. What was it caused by and are such impairments to be expected in the future? Thanks. No, nine month, not nine month, nine million impairment. Sorry. Maybe I can ask if, is that Chetan Urvikas who can answer that question?

Sure, Peter. Thank you. Look, there were certain companies that we reconsidered our investments in. It was the right alignment and testing for impairment. It's an exercise that the auditors do on an annual basis. And we've been having some discussions and these were the impairments that we put through in terms of impairing some of the goodwill that is on the balance sheet. Is it common or expected in the future? I think it's a variable scenario or a variable line item in the balance sheet that will continue to increase and decrease as we do acquisitions and as we test for impairment. So it will be variable. It will increase when we do acquisitions and it will increase be tested for impairments as we work with our auditors in terms of determining the value of some of the subsidiaries that we have.

thank you very much i have a question from max folks about q4 ebta margin decreased from 17 to 14. given your strategic shift towards higher margin software platforms ip this margin compression seems counterintuitive is this q4 margin impressive temporary due to integration costs from the acquisitions completed in 2025 Or should we expect margins to remain pressured due to shifted business mix? What is driving this quarterly variance? And when do you expect to return to or exceed the 16.9 full year margin level? It's back to you, Chetan.

Back to me. Thank you, Peter. Thank you for the question. And I think I did have a slide, but I will further elaborate on this point. We did acquisitions in Q4 and we concluded acquisitions in Q4. does tend to be costly, especially when you acquire a group like Spotter. The costs are quite significant to the group when we onboard and when we take on such businesses. Some of the provisions, and like I pointed out, the annual provisions come through in the fourth quarter to align our year-to-date numbers based on the expenses that we're going to incur. or from a cash flow point of view, next year, but we have to book such costs this year. When do we expect for the EBITDA to normalize? I would say definitely in Q1 this year, it should normalize because some of these wants, of course, have hit us in Q4 in 2025. But by no means it is a downward shift in terms of our business activities, but rather some of these ones, of course, that have impacted us in Q4.

Thank you. That's very clear, Chetan. Next question comes from Stian in Norway. Is the improvement in DSO a trend or due to one-time effects? Should you take that, Chetan, too, or should you hand it to Victor?

No, I'll take that as well. We certainly hope it's a trend, right? I mean, Many parts of the business have to work in sync together in order to improve collections from clients. We have 200,000 plus clients in the group. And as we look at our contractual modules with clients, we do try and always try and optimize our cash collections. And I think... The improved cash balance is reflective of this, and I certainly hope that it continues to be a trend. But we are a dynamic business too. As we're on board and as we try and increase our pipeline, and as we try to get to our forecast as we continue to grow, we will get and we will encounter clients of different scales and different magnitudes. And as you penetrate sometimes some of these clients, the initial payment terms may not always be favorable, but it's certainly something that us in management as a collective are trying to improve on.

Thank you very much, Kjetan. Is there any more questions? Please raise your hand.

if not maybe maybe if uh please just adjust that to come to uh to confirm what uh chat and uh was explaining i think it's uh it's fair if we consider also is correct the analysis of the quarter because this is a quarterly report but also it's we must we should consider that we had during this year quarters where we had over achievements and you know it's when we have an over achievements and we are talking to have a more much more about the average of 16. if i don't mind that we had quarter with 20. So I think you know better than me that the life of the company must be considered in the course of the whole year. So what I think is, yes, we can explain and we can, as we did, that we have some, for some reason, we had this kind of result. But also, I think it's fair to consider that in advance, we already work in order to keep really high the average of our work. And we will do that even this year. We will work in advance in order to keep as high as possible our margins. So my consideration is that the quarter report is as natural. moment what I think is important and we cannot absolutely we should consider if the work did during a year, because it's, in my opinion, it's important for the whole team, for the whole group, for all the people working in this company. This is, I'm saying that because Q4 is just a period, but the reality is we did a strong work during all the world 2025, We cannot say that because maybe we had just a small difference in one indicator in Q4, it's something influencing the whole year. Not at all. It should be unfair. So I think as soon as we can issue the annual report, you can see what I'm saying. Okay.

Thank you very much, Michael. And if there are any more questions, you are of course welcome to send them by email to ir at whiteballtech.com. And we will do our best to answer. I remind you that this session has been recorded and it will be available on the company website. Thank you very much, ladies and gentlemen, and have a lovely evening. Thank you. Thank you. Thank you very much.

Thank you, Mark. Bye-bye.