Knowit AB (publ)

Welcome to KnowIt's third quarter 2026 presentation. My name is Kristina Johansson, and I'm chief communications officer at KnowIt. In the studio today, we have Fredrik Valde Ekerhav. He is our new president and CEO, and he will take you through the numbers together with Marie Björklund, our CFO. After the presentation, they will answer your questions. Over to you, Fredrik.

Thank you, Kristina. I'm very happy to be here presenting my first quarterly presentation as CEO, and I'm pleased to have the opportunity to share our results with you. But before we turn to the numbers, I would like to say a few words about where we're heading as a company. Knowit has a strong foundation. We have highly skilled people, long-standing client relationships, and a proven ability to combine technology and business expertise to create real value for our clients. At the same time, our industry is changing rapidly. AI is fundamentally reshaping what our client needs, how technology is developed, and how we deliver our services. And we intend to be at the forefront of that change. That's why we are accelerating the transformation of Nowit. Our ambition is clear. To build a simpler, more client-focused company with a stronger foundation for profitable growth. The new country-led organization, which we announced in early September, is an important step in that direction. Ultimately, our success will depend on our people, and I'm confident that we have the capabilities, the commitment and the leadership to succeed. Now, let's dive into the highlights from the third quarter. We are pleased to report a strong third quarter, with clear improvements in profitability. We maintained revenues at last year's level despite having 7% fewer employees compared with the same quarter last year. This demonstrates that the measures we have taken to improve our operational efficiency are delivering results. Our adjusted beta margin increased from 5.1% last year to 6.7% this quarter. The improvement is driven by higher utilization, disciplined cost control and positive development in hourly rates, as increased sales activity. We are seeing solid performance across several markets and business segments, with Norway standing out as a strong contributor. At the same time, we continue to see new business opportunities emerging from AI. More clients are moving beyond experimentation and pilot projects towards large-scale AI implementation. This is an important development for Nowit. With our broad expertise and strong tech partnerships, we are well positioned to support our clients throughout this journey, from strategy and advisory to implementation and ongoing development. As mentioned, we have announced a fundamental change to how Knowit is organized and managed. Effective October 1st, we have moved to a country-led operating model. Going forward, our consulting operations will be managed and reported through our four Nordic countries, Sweden, Norway, Finland and Denmark. In addition, products will remain a separate business area, reflecting its distinct business model. The rationale behind this change is straightforward. We want to simplify Nowit. We want to bring decision-making closer to our clients and establish clear accountability for performance in each market. We also want to reduce organizational complexity and create a more efficient cost structure. Importantly, this transformation is about more than cost savings. It's about creating a stronger platform for growth, improving the client proximity and enabling teams to work more effectively across capabilities. Our newly appointed country leaders are now driving the work to establish a new operating structure in their respective markets. And we are making good progress. We expect the new organizational structure to generate an annual cost savings of 100 million SEK. These savings will build gradually, with full effect from the third quarter of 2027. The restructuring costs are expected to total 70 million, of which 7.5 million was incurred in the third quarter of this year. To provide a clear view of our progress, we will report both savings achieved and restructuring costs incurred in each quarter from Q4 2026 throughout Q3 2027. This is the final quarter in which we will report and comment on our performance under the previous business area structure. Let me start with our largest business area solutions. Solutions reported net sales of 613 million in the third quarter, with a beta margin of 9.3%. Operationally, solutions is delivering a stable performance, primarily in Norway, where performance has a strong revenue growth and profitability. However, to drive further improvements in profitability, we need to return to growth. Sales activity remains high, and we have signed several new deals in the quarter. And towards the end of the quarter we saw encouraging signs in Sweden, although market conditions remain challenging in certain regions. Overall, our priority is clear. Maintain operational discipline while strengthening our commercial momentum.

Moving on to Experience, our digital agency.