Exsitec Holding AB (publ)

Hi everyone and welcome to this web presentation of the Excitec Q1 report. My name is Carl Öberg and I will be moderating this presentation. Presenting today will be Group CEO Niklas Ek and Group CFO Carl Arneson. If you have any questions during the presentation, either use the raise hand function or write directly in the chat here in Zoom. With that, I hand it over to you, Niklas and Carl.

Thank you. Hello, everyone. This is Niklas Eek speaking. I am the CEO at Excitec, and 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 our priorities going forward. We are Excitec, making IT work together. 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. Excitec is a Nordic company started out from Linköping, Sweden. Today we are around 700 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. Best of breed is how we approach our customer solutions. Many of our deliveries are centered around the ERP and finance system, which act as the core. By selecting the right components and ensuring they work seamlessly together through our in-house integrations, we can take full responsibility for the entire solution. 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 26% of our net revenue. And just under two thirds of our revenue is from professional services where we implement the software and make the customer 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 our customers a single point of contact support on our recurring fixed price model. Our customer base today is around 7,000 organizations, and our target market is medium to large-sized 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 combined 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 over 20 software components. We combine these softwares with integrations that we develop in-house and we have a shared revenue partnerships with these software providers where we market and sell their software to new accounts and make customers successful in using the software over time. Excitec runs one of the largest trainee programs in the Nordics and has done so at scale since 2015. We are very proud of this and today almost 40% of our employees started their careers with us as trainees. The trainee program is our primary source for recruiting new talent and an important driver of our long-term growth. Looking ahead we plan to welcome a new group of trainees in August as usual and the size of 2026 program will be in line with 2025. So let's dive into specifics for Q2. I will start off with the highlights and then leave the word to Karl Arneson our CFO for the financial details. Overall, I'm pleased with the second quarter. We delivered a good balance between improved organic growth and continued high profitability. Organic growth reached 8% year-on-year, which is a clear improvement compared with previous quarters and an important step forward for us. One of the major events during the quarter was the acquisition of Amesto Solutions. I will come back to that in just a moment. Our recurring software revenue continues to develop well, reaching 246 million SEK on our last 12-month basis, up 19% year-on-year, providing a stable and predictable revenue base. And finally, despite a strong comparison quarter last year, order intake from new customers increased by 8%, which gives us confidence as we move into the second half of the year. Amesto Solutions is the largest acquisition Exitec has made to date. This acquisition is not primarily about size, it's about strengthening our position in the areas where we already have a proven business model and strong market positions. Like Exitec, Amesto Solutions is a long-term partner to Visma and Dubrofys, with a business model built on recurring software revenue and long-lasting customer relationships. That makes the strategic fit very strong. And the key strategic rationale behind the acquisition is Norway. Around two thirds of Amesto's business is based there, making us the clear market leading business partner in Norway. It's also giving us a stronger platform for future growth across the Nordic region. Beyond the stronger market position, we also see opportunities from combining the two businesses. Together, we have a broader offering, a larger customer base and increased local presence, creating opportunities for both stronger growth and improved profitability over time. The integration has started according to plan, and we expect to provide more details on the expected cost synergies during the third quarter. With that, I will hand over to you, Carl.

Thank you, Niklas, and hi, everyone. Looking into our net sales, as Niklas mentioned, we report a 12% growth in Q2 versus last year. And if we exclude both the divested and acquired operations, the organic growth was plus 8%. As we've seen a relatively low organic growth in the recent quarters, it's very positive to see the uplift in Q2, and also that we see organic growth in all our segments. And I will come back to the development per segment shortly. Our growth comes mainly from recurring revenues from software that stands out also in this quarter. But in this quarter, we also saw an uplift in the professional services, especially in Sweden. Despite the uplift in organic growth and that we see positive signals, the general market sentiment is still that customers are a bit cautious and tend to push decisions of minor updates and adjustments into the future. Meanwhile, new projects driven from our sales department are developing more positively. Moving over to our adjusted EBITDA, we report a 50 million SEK profit, which is a 12% growth versus Q2 last year. Main drivers behind this uplift is the continuous growth in recurring revenues, also a growth in professional services, but also by a continuous cost control. Also worth mentioning is that we report one-offs of totally 13 million SEK covering both transactional costs for the MS2 Solutions acquisition, but also restructuring costs for our Norwegian Development Department. And I will come back to this shortly as well. Despite the growth in adjusted EBITDA, we still feel that we can deliver even stronger performances and profitability almost across all our segments. And even though we've seen organic growth in Q2, the efficiency can be improved. And this is something that we also prioritize in our daily operations. Year-to-date, the adjusted EBITDA of 99 million SEC equals a 10% growth versus the same period last year. Here we see a consolidated view over the net sales and adjusted EBITDA margin for the excited group. The adjusted EBITDA margin of 20% in Q2 was slightly higher than the same quarter last year. In addition, it's also satisfying that we continue to see a general increase in the net sales per employee across the board. Let's continue with the network recurring revenues from software. For the last 12 months, we see a growth of 19% compared to the LTM revenues last year in this revenue stream that made up 26% of our revenue year-to-date. The growth is driven both through new sales and price increases, but to a certain degree also from M&As. The organic growth in net recurring revenues summarized to approximately 70% of the total growth, so 30% acquired and 70% organic. This development is, of course, a very important contributor to our earnings and also strength with our business model. But it's also a good indicator for us that we have a strong offering and that our customers continue to use and deploy the software that we are delivering. Regarding our different segments, first of all, Sweden delivers a 2% growth year-on-year, although that the organic growth was 6% if we excluded divestment of the Sedcom business that we divested in Q1, and also the Amestio acquisition now in Q2. The adjusted EBITDA margin also developed positively and ended up at 24% slightly above last year. So we deliver a stronger growth and maintain the margin trend from last year, which is positive. Sweden continues to develop well with a gradually stronger demand in combination with an improved efficiency in the professional service operations. Norway reported a 40% growth in net sales year on year, but excluding acquired businesses, Amesto here, the organic growth in local currency was 7%. It's also satisfying that we continue to increase our adjusted EBITDA and the margin in Norway. In Q2, we reported 15% EBITDA margin compared to 11% last year. where the recurring revenues and good customer control were the main drivers behind the uplift. We maintain the margin level from recent quarters, which is a sign of stability that we've experienced in this segment. Even though we're happy with the improvement, we still feel that we have even more opportunities in Norway going forward. Therefore, we've also conducted a restructuring of our development department in Norway. This gives us the ability to strengthen the margin even further going forward. The one-off of approximately SEK 7 million related to the restructuring has been excluded in our adjusted EBITDA. Finally, our third segment of the Nordics that covers our offerings in Denmark and Finland reported a growth of 24%, where the organic growth in local currency was 11%. Our Danish operation had a very strong Q2 in 2025, but we are nevertheless not satisfied at all with the margin in this quarter. The order intake and the customer demand have not been at the level that we are aiming for during this quarter, so therefore we have adjusted the capacity in relation to the demand and our ambition is to come back to a higher margin level ASAP. In addition, it can be mentioned also that our Finnish operation delivered solid revenue development also during this quarter. And by that, I hand over to you again, Niklas.