Knowit AB (publ)

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Ladies and gentlemen, welcome to the NOID First Quarter 2026 Interim Report Conference Call. I am Judith, the Caller's Call Operator. I would like to remind you that all participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone. For operator assistance, please press star and 0. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Per Valentin, CEO. Please, go ahead, sir.

Thank you, and welcome to this presentation of Novice Report for the first quarter of 2026. My name is Per, and with me, I also have our CFO, Marie Björklund. Well, as a start, Probably most of you saw after this report was published this morning, we also released that I have an intention to step down as CEO. And I will stay over Q2 and then hand over in August. And this is a decision that has developed through an open and constructive dialogue between me and the board. The timing is right, both for me personally and I think it's right for Novit as well. And as you all know, the past three years have been demanding, adapting to challenging markets and weaker economies. We have taken difficult but necessary decisions to strengthen our efficiency and long-term resilience. Truly proud of how we have navigated this period. And this period, I think it's now largely behind us. We have a stable foundation for the future. And with that said, the focus now shifts back towards growth and innovation in high speed with AI all over it. And I think that the future with this long-term growth and long-term change in this business requires a long-term leadership perspective. I've been part of Norwich for 27 years in leading roles and the past 15 years as CEO. So I believe this is a natural transition point. I am very pleased that Fredrik Ekerold will step in as acting CEO from August. He is currently the head of our largest business area solutions, and he's been part of our management team for almost 10 years. He brings deep knowledge of our business, our culture, and our clients know it will be in very good hands during this transition. And of course, I will help in all ways to make it a really good transition as well. That's really important for me. Well, now over to the report and some operational highlights in the quarter. We see continued improvements in our operations. Utilization is up in all business areas with solutions as the engine in that development. Important is that we gradually improve utilization in Sweden, especially in experience where we also see organic growth for the first time since a couple of years and expanding margins in the quarter. In light of the rapid technology development driven by AI and structural changes, the market we need we need to continue optimizing our organization. This includes retaining some competencies with others. This is really important for long-term growth, but that impacts EBITDA this quarter. Next slide, please. We will now take a look at our business areas in more detail, starting with solutions. Our largest business area accounted for around 50% of total revenue, reported net sales of 717 million SEK for the quarter. The EBITDA margin was 9.3%, in line with the same quarter last year. We continue to see a strong utilization trend. We saw a slow start in the quarter, but the development was really solid in March. We continue to protect profitability through cost control and operational adjustments. These adjustments have impacted EBITDA and EBITDA margin this quarter. We have several ongoing initiatives to truly become a data-driven organization and see great opportunities driven by AI, both for delivery and operational efficiency. Well, over to experience our digital... Next slide, please. Over to... experience our digital agency reported net sales of 276 million SEK in the quarter with an EBITDA margin of 6.3%, a small improvement compared to last year. We achieved solid operational progress across the business. Utilization has improved, which is a key driver for us when we And we've been able to maintain a stable margin. In Sweden, we deliver a clear turnaround. Utilization is strong, margins are improving, and we're back to organic growth. The actions we've taken are really working. Although in Norway we are downsizing part of the business in the quarter, the focus has been on sharpening our client offerings to ensure that we have the right competencies in place. This affects margins, deliberate investments to improve our future performance. We also continue to evolve our offerings into more advisory roles, helping our clients to understand how to use AI and to use that in a broader digital transformation. That's an area where we see strong demand and clear long-term potential. Moving next slide, please. Moving over to business area connectivity, reported net sales of around 145 million SEK for the quarter. EBITDA margin was 5.4%, improving compared to last year. We continue to see stable delivery and strong utilization. The margins have improved for the third quarter in a row. indicating that the measures we've implemented are having sustainable effects. We think that geographical flexibility is becoming more and more important for efficient delivery and margin expansion, and this will also position ourselves for further growth. Although we have seen some short-term impact from individual clients, for zoning projects also in connectivity during the quarter. At the same time, our ongoing effort to reduce dependency on single clients are paying off. We have a more balanced client portfolio today, which makes us more resilient going forward. Over to business area insight reporting. Next slide, please. reporting net sales of around 226 million SEK and an EBITDA margin of 1.7%. And of course, that's clear with that margin. We had a weak start to the year with softer demand and negative margin development. This has been particularly evident with traditional management consulting where market conditions are challenging. That said, we are having more dialogues with clients and activity levels are picking up. However, decision-making processes remain slow with continued delays in conversions into actual projects. As we have been talking about before, we are actively investing this quarter as well in areas where we see strong and growing demand, such as ERP, We start ERP delivery in Sweden right now, cybersecurity and defense. And of course, these are important focus areas that will support both our relevance and our growth going forward. So both parts where we downsize and parts where we actively grow in insight continuously. Next slide, please. Over to our new business area product, reported net sales of around 95 million SEK for the quarter, with an EBITDA margin of 12.8%. This new business area is developing steadily with strong deliveries across several segments. To highlight some areas, we have a strong demand in areas such as defense, security, trusted identity and smart mobility. I think that these are segments that we are highly relevant and where market demand is growing quite a lot. We have strong opportunities in helping clients leverage AI. But just as importantly, It will also, especially in this business area, strengthen our own scalability, allowing us to grow without relying solely on adding more people. And to be clear of the business model in products, we are operating in the intersection of traditional consulting and software development projects. And I think that this is an area that will remain resilient and even grow in the face of AI driven disruption. So it is really interesting to follow for the next coming years, five to 10 years. Next slide, please. And now I would like to turn to Marie and go through the figures a little bit more in detail. Next slide, please as well.