Exsitec Holding AB (publ)

Welcome to Excitex presentation for the second quarter. Presenting today will be CEO Niklas Ek, CFO Carl Arneson, and me, Hampus Lankvist, Head of M&A and Investor Relations. If you have any questions, please use the raise hand function or the chat function in Zoom. And with that, I leave the word to Niklas.

Thank you, Hampus. Hello, everyone. This is Niklas Ek speaking. I am the CEO and has been that since the beginning of March this year. I will start off by making a short recap about our business as a reminder what we do. After that, we will cover Q2 financials and a short market update and also a recap of our priorities going forward. We are Excitec, making IT work together and we exist to deliver digital solutions that improve our customers' businesses and we aim to be a one-stop shop to the customer. We do this by selecting different softwares and develop in-house integrations that can be reused. By implementing different software and provide long-term support, we aim to be a single point of contact for our customers. The digital tools that we use can address areas like reducing financial administration through automation or use data for better decision making. Our customer base today is around 5,500 organizations and our target market is medium to large sites companies in the Nordics. No one customer typically is more than around 1% of our revenue, so very low risk in the individual accounts. We combine the software packages we work with to fit different industries and we have customers in many different industry sectors as you see in the slide. These are the primary software providers and partners that we work with at this time. We are resellers of softwares and the selection has grown to just over 20 software components. We combine these softwares with integrations that we develop in-house and we have a revenue share partnership with these software providers where we market and sell their software to new accounts and make customers successful in using the software over time. The business model is built on three revenue streams. The sales and marketing is focused on selling software together with integrations. This is sold on a subscription model where you pay as you use. This revenue stream has grown to 24% of our net revenue. Just under two-thirds of our revenue is from professional service, where we implement the software and make the customers successful in using the software over time. We also do custom development and custom integrations when needed. The third revenue stream in our business model is that we offer customers a single point of contact support on a recurring fixed price model. In this engagement, we can also take care of infrastructure, internet access, IT security, and such things. Excitec is a Nordic company that started out from Linköping, Sweden. Today we are around 600 employees, with Sweden being the biggest segment. We have been successful in the last 10 years with growth, both organic and from M&A. Our EBITDA has followed our growth nicely, with an exception in 2024. Excitec runs one of the largest trainee programs in the Nordics and has been doing that with scale since 2015. We are very proud of this and almost 40% of the employees working at Excitec started as trainees. When it comes to the class of 2024, they were profitable now in Q2 as expected. We are planning for a large program this August where we welcome around 60 new colleagues. Our trainee program is the main source for recruiting new people and an important addition for future growth. So let's dive into specifics for Q2. I will start off with the highlights and then leave the word to Carl Arneson, our CFO, for the financial details. Last year, we reported a strong Q2 and we still act in a market with a passive customer sentiment. So we feel good about our stable margin of 19.4% and adjusted EBITDA over 44 million SEC this quarter, which was in line with the second quarter last year. Our total growth comes entirely from acquisitions. We are not that happy with the development in organic growth in Q2, something that we are continuously working on. One important factor for future growth is our new sales and therefore it's satisfying to see our strong order intake in Q2, which was around 40% up compared to Q2 last year and the best quarter ever for Excitec. So with that, I leave the word to you, Carl.

Thank you, Niklas. Starting off with our net sales, we report a 8% growth in Q2 versus Q2 last year, where as mentioned, Niklas said, the organic growth was summarized to minus 2%. Following the weaker Norwegian and Danish kronas, we actually delivered slightly stronger numbers. In fixed currency, the total growth was plus 10% and the organic almost flat year on year. During the quarter, we saw strong net sales performances in especially other Nordics and Sweden, mainly through our acquired businesses. And I will also come back to the development per segment shortly. Our growth comes from all our revenue streams, where professional services and software are the main ones, as mentioned. And the growth in recurring revenues stands out. But the overall feeling is still, and as mentioned in the previous report as well, that our customers tend to push decisions for minor system updates and adjustments into the future. while bigger projects such as new investments and system migrations are developing more positively. Also, looking at the trend the last six months, we see an 11% growth year-on-year where the majority comes from acquisitions. Moving over to our adjusted EBITDA, we report a 44 million SEK profit, which is 1% up versus Q2 2024. However, and as mentioned, we still feel that we can deliver even stronger performances almost across all our segments. The efficiency, especially in Sweden and Norway, can be improved. And this is also something that we're working continuously with. And year to date, the adjusted EBITDA is plus 7% versus last year. For the entire year and also a few years back, the net recurring revenue from software has been a highlight for us. And for the last 12 months, we see a growth of 28% year on year in this revenue stream that made up 24% of our total revenues. This growth is driven by both M&A, new and cross sales, and to a certain degree also from price increases. Overall, the organic growth in net revenue from software summarizes to approximately one-third of the growth for the last 12 months. This is of course a very important contributor to our earnings, but it's also a good measurement to see that we have a strong offering and that customers continue using and deploying software that we deliver to the customers. Regarding our different segments then, looking into our different segments, we have Sweden that delivered 11% growth year-on-year in Q2, where the organic growth was slightly positive. The adjusted EBITDA margin did not develop in the same manner, but ended up at 24% versus 27% last year, although an uplift versus previous quarters, and the delta versus last year is better than in Q1. The lower margin year on year can mainly be explained by a lower efficiency that we're not completely satisfied with, as I mentioned. It can also be noted that despite a lower efficiency, the margin in Q2 is our second best Q2 margin in Sweden since the IPO. Norway reported a minus 10% in net sales year on year in Q2. However, affected by a weaker Norwegian Krona in local currency, the decline was minus 5%. Despite this, it's satisfying that we managed to increase our adjusted EBITDA and margin from 5% to 11% year on year. where an improvement in efficiency was the main driver behind the uplift. Even though we're happy with this improvement year-on-year in Q2, we still feel that we have more opportunities going forward in Norway. An improved margin in Norway is one of our key focuses going forward. A stable and strong margin over time is important for building a stronger business ready for future growth. Finally, our third segment of the Nordics that covers our offerings in Denmark and Finland reported a very strong growth of 48% in Q2, where the majority of the growth was acquired. Especially the professional services business in Denmark developed strongly during April and June, while May was slower in relation to other months, 2025, which also affected the margin for the total segment. We have been able to serve the customers acquired from ECIT well, also during Q2. And we see further potential also in the coming quarters related to this. Worth mentioning is also that we in Q2 had a slight negative one-off in Finland that affected the margin for the segment. Regarding the margin, as we had 33% in Q1, we still believe that it should be significantly higher than last year. But it can also vary a bit from quarter to quarter when it comes to the Nordics. And by that, I hand over to you again, Niklas.