Knowit AB (publ)

Hi and thank you and with me is our CFO as well Marie Björklund. First I would like to take you through some operational highlights during the quarter. We are happy to see continued improvement in both utilization and margin in all four business areas for the first time since Q1 2022. I see this as a clear result of our hard work over the past two years. The improvement Improved profitability is driven by higher utilization, greater efficiency and proactive sales. And this focus has shaped both the quarter and the full year. And as you've seen, after the period we ended, we made a strategic decision to establish a fifth business area products. risk this reflects a clear shift in the market with the growing demand for the combination of consulting and our own ip platforms now it already has several successful offerings in this area with this change i think that we will be able to create the clearer accountability strengthen strengthen our commercial focus um and also provide better conditions for growth in a quite fast evolving market. This business area will consist of approximately 200 employees and the revenue of the operations amount to around 300 million SEK 2025. Thanks to its continued strong financial position and confidence in the group's long-term development, the board proposed a dividend of 2.5 SEC per share, an increase of 9% compared to last year. Next slide, please. We will now take a look at our business areas more in detail. Solutions, our largest business area, accounted for more than 50% of the total revenue reported net sales of 771 million SEK for the quarter. The EBITDA margin was 10%, improving compared to last year. We are happy to see a solid improvement in the business area driven by a positive trend in Sweden, where we have seen signs of pickup in demand during the fall. Our long-term efforts to improve both efficiency and utilization are now really delivering results. Over the course of 2025, utilization trended positively, and I think that this will provide a strong platform for continued growth in the future. Next slide, please. Our digital agency experience reported net sales of 274 million SEK in the quarter with an EBITDA margin of 6.2%. A strong improvement compared to last year. Utilization rates are improving month by month, driven mainly by the development in Sweden. We have invested and worked hard to enhance sales and leadership, which is paying off with a strong pipeline going into 2026. We continue to work towards more advanced and value-creating offers where AI is used. And this is actually creating so much new opportunities for us and for our customers. Next slide, please. Business area connectivity reported sales of around 225 million SEK for the quarter. EBITDA margin was 11.3% improving compared to last year. We are happy to be back in organic growth. This is a combination This in combination with improved utilization creates a really positive momentum, especially projects related to the defense sector develop strongly. But the industry sector is still challenging. And we have also broadened our business with a lot of new sectors and customers. And this position that we have built over the past year positions as well for continued growth. Next slide, please. Business area insights reported sales of around 234 million SEK for the quarter. EBITDA margin significantly increased to 9.1%. We are pleased to see margin improving year by year for the first time since 2023. We have a healthy trend in utilization, mainly explaining the margin improvement. Although the market uncertainty remains and we are experiencing high competition. The increased focus on security and resilience in the society increases the demand for our offerings within cybersecurity and defense. Next slide, please. And I would like to turn to Marie who will walk you through some financials more in detail. And next slide, please. Over to you, Marie.

Thank you, Per. So back to the group as a whole. We delivered sales of approximately 1.5 billion SEK, a decrease of 9.1 compared to last year. But adjusted for perform of acquisitions, divestments and FX, it was minus 4.3%. The number of hours in this quarter had almost no effect. However, fewer employees than the previous year did. The average headcount during the quarter was down by 5%. The adjusted EBITDA amounted to 116 million SEC, up from 106.6 last year. The EBITDA increased mainly thanks to two things, improved utilization and efficiency gains. It is the second quarter in a row with increased EBITDA and EBITDA margin. And this quarter, all four business areas are contributing to the development. The margin was 7.8 versus 6.5 last year. High competition remains, and that means price pressure. It is one of our top priorities to increase prices to compensate for salary revisions. And as mentioned, we continue to see a market that remains challenging, but there is a significant potential to further improve margins and to regain organic growth. Next slide, please. As this closing also marks the year end, I will also comment on the full year performance for 2025. in addition to the quarterly development. We do operate in an uncertain market environment and against that backdrop, we decreased our sales with 9.6%. For the full year 2025, net sales amounted to 5.8 billion. The decline is primarily explained by a lower number of consultants and continued price pressure. The adjusted EBITDA for the year amounted to 337 million compared to 395 million last year. The decrease was mainly driven by lower revenue levels and pricing pressure, partly offset by clear improvements in utilization and continued cost control. The adjusted EBITDA margin for the full year was 5.8% compared to 6.2% last year. And while the overall picture for 2025, it's not particularly uplifting, it's important to highlight that the underlying trend is improving during the past six months. And we are seeing the effects of utilization and operational excellence in the fourth quarter. Next slide, please. NOIT has recognized a goodwill impairment of 399 million SEC in the fourth quarter. It has no effect on the cash flow and it is a non-recurring item. It relates to the acquisition of Cybercom in 2021. The acquisition of Cybercom has been very significant for NOIT's development. and has contributed to strengthening the customer offering as well as delivering both strong results and a solid cash flow. We view this reassessment as a natural consequence of the current valuation environment rather than an indication of a weakening of our overall business. Know it has a stable balance sheet and a solid financial position going forward. As Per already mentioned, the board has proposed a dividend of 2.50 Swedish crowns per share, which is an increase with 9% since last year. Reported earnings per share for this year is negative due to the non-cash, non-recurring goodwill impairment that I just described. Adjusted for this item, EPS amounts to approximately 4.18 Swedish crowns per share, And the proposed dividend of 2.50 per share amounts to 60%, which is in the upper end of the dividend range, reflecting the view of the expected market development. Next slide, please. So the development in net sales and adjusted EBITDA, both on a quarterly basis and on a rolling 12-month basis. The revenue development should be seen in context of our deliberate focus on profitability over volume during the years. We have reduced capacity where demand has not supported full utilization, which has a short-term impact on revenue, but strengthens the underlying margin quality of the business. Net sales on a rolling 12-month basis have declined compared with last year, primarily driven by a lower average headcount and continued price pressure in the market. At the same time, it is important to know that adjusted EBITDA has stabilized and improved the past two quarters. For the last 12 months, adjusted EBITDA amounts to 338 million SECs, corresponding to a margin of 5.8%, which represents an improvement compared with what we reported in Q3. Importantly, the improvement in EBITDA is not driven by one-off effects, but by structural improvements, higher utilization, and a lower cost base. This provides a stronger starting point as market conditions gradually improve. Next slide, please. This slide shows the development of our net debt and confirms that NOID continues to have a healthy balance sheet and a solid financial position. At the end of the quarter, net debt amounted to 433 million, corresponding to a net debt to EBITDA ratio of 0.8, which is well within our financial target of a maximum of two times EBITDA. During the fall, we entered into new banking agreements with improved terms, further strengthening our financial flexibility. Interest-bearing liabilities are stable and other liabilities mainly reflect IFRS lease liabilities that do not indicate increased financial risk. With low leverage and significant headroom versus targets, we are well positioned to future possibility and to maintain financial discipline. Next slide, please. We continue to demonstrate a strong and diverse customer portfolio, which is particularly important in an uncertain market environment. Our broad exposure across sectors reduces dependency on individual customer or market. Development in the public sector is strong, up 4% since last year, supported by a solid market position especially in Norway, and also continued good delivery to key clients. This contributes positively to overall stability and growth. The retail and service segment shows stable development, reflecting resilient demand despite a more cautious macro environment. At the same time, industry-related revenues have declined, as several clients remain cautious following a prolonged period of economic uncertainty. The defense segment continues to develop positively, driven by increased demand and a strengthened position among our key customers. Telecom shows stable development overall, where growth in certain areas is offset by structural changes in others. Overall, we consider the mix across the sectors to be healthy and well-balanced, positioning as well to navigate an uncertain market while maintaining long-term stability. And with that, I hand over to you, Per, to sum up.

Thank you, Marie.