Proact IT Group AB (publ)

Good morning everyone and welcome to PROACT's Q1 report 2025. I am Magnus Lönn, I'm president of PROACT and I'm here for you who have been listening in to this meeting before you see that we have a new duo here to present our Q1 report. It's me Magnus and Nora our CFO. And I myself, I took over as CEO for Proact first of March this quarter. But I have a longer background in the company in the sense that I have been leading our Nordic and Baltic business for the last three years. And I've also been deputy group CEO for the last year. So I'm well aware about our company and our potential and our business foremost. So it's really glad to have you all on the call here to walk you through this quarterly report. And as usual, I will give you a short introduction to Proact as a company for you who are new to the call. And then I will give you a short overview of the market that we are operating in. Of course, we will dig into the quarterly highlights and then Nora will guide us through our financial results. And then I'm more than happy to take questions at the end of this session. So let's get started here. So Proact, we are a leading expert when it comes to provide critical business infrastructure to our customer. And this we have been doing since over 30 years as a company. And we were founded in Sweden three decades ago. And what we are really, really good in is exactly this around IT infrastructure. And I will go a little bit more into detail around this later on. But this is actually something that every customer in today's society has a critical need of because all our businesses are more and more digitalized. And this is the area where we are in. Today we are operating in 12 different countries and you can see them here on the map. So we are very Europe centric. We serve around 2000 customers on an active basis. And we have a yearly turnover of five, roughly five billion Swedish kronor. Been stock listed since 99. So a well established company. and as you can see through right here over the past five years we have actually done a good growth session growing our revenues and also EBITDA foremost. Today we are around 1200 experts across our countries and I would say that we are really We are a local trusted partner. And nowadays, I'm also very proud to say that we are a local European partner, because this is, given the last turbulence in Q1, is something that we experienced that our customer are valuing more and more, I would say. So that is us in a short, but take the next slide here. From an operational standpoint, we have divided our business into four different business units and this is also how we report our financial numbers. The red one here is Nordic and Baltics, and this is roughly half of our company in size when it comes to revenue. Then we also have business units in UK, and we have one business unit called West, which consists of Belgium and Netherlands. And then we have our business unit Central, that consists of Czech and Germany. out of these business units we are also delivering we have located our service hubs and i will go into more details from that but that is actually where we produce our services that are supporting this 2000 customer that we were talking about with our own produced services If we look into our revenue stream as a company, I would say that we have a really good spread when it comes to how we generate revenue here. We have the two to the left here, our system and support services. And this is actually the core of Proact where we were started 30 years ago. And then we have expanded out this so that hence there is a different size of it. But our system is that we are helping our customer with designing, providing and install systems that are taking care of their critical infrastructure. It can be service, it can be storage. It can be NVIDIA infrastructure that are enabling AI, for example. And it could be on-prem and it could be in our data centers. Then to all the systems that we are selling, we are very often providing our own support, meaning that if a customer gets a critical failure or something in their environment, then our team are there to support and help and fix it. And this is something that are really working well and it's really appreciated by our customers. And then we as a company also have the possibility to provide what we are selling also as a service, meaning that we own the hardware and we operate the hardware on behalf of the customer. And this is something that we are actually seeing and growing more and more. And this is what we call managed cloud services, MCS. um and of course we as a company we are a tech company and at the end of the day that means that we are experts in what we are doing so we are also selling our competence in form of consultancy services and i would say that all our consultancy services related to the competence that we have it could be designing a new data center it could be cloud native service it could be around public cloud and things like that so we have a really skilled team and For you who follow other tech companies and also in general, I would say that cybersecurity and finding solutions for them, this is on top of every company's agenda. And if you think about it, the best solution or protection for cybersecurity is actually to have a good backup of your data. If something happened to your primary site, then you could restore your data and then you can get back to business again. And this is something that more and more customers actually realize. They can invest enormous amount of money into cyber protection, but at the end of the day, The ability to restore and back up your data is probably the best protection that you can have in the environment that you're operating in. AI is of course a super important driver and we see more and more of that coming. And we are the experts in building the infrastructure around AI and that is important to point out.

If you look into the market, I was talking about that we are in a very good position.

So if you can see here down to the left in the graph here, this is the society that we all are living in. That's the amount of data that we are consuming both as private person, but also as company or generating is actually growing. And this data needs to be stored somewhere. And that means that then there is a need for services and taking help from a company like us. And if I would bet, I would say that the amount of data beyond 2026, it will just continue to increase because this is how we see it. You also see, unfortunately, that this cybersecurity trends and the spend in the market that will just become more and more because it's like a war against, you know, criminality that are becoming more and more sophisticated and then ways of finding and to protect it. At the end of the day, I think we at Proact here are actually super good positioning because we can help and design So that when, and I say when, because the likelihood is very high that you get attacked by a cybercriminal, but then that you can restore your data and that you can get up and run your business again. And this is some of the key, what to say, experience and knowledge that PROAC posses. Hybrid cloud, this is also something that we see more and more coming, that many of our customers, especially I would say the last year, have really rethought what they think about where to store the data. Maybe it's not the best thing to store your critical business data in a cloud that is operated by an American company. For two years ago, this was not a question, but given the last 100 days and what's happened in the US, now many customers are really rethinking this. And here we are actually there to help our customer, designing the most optimal solution for them to help and store and protect the data. I was mentioning that we see an increase of AI, and this is a sort of a customer case that we were working with during Q1, and that was that Göteborgs Universitet, a really science-focused environment, they were building up an environment for their researcher to test and apply new methods. And we enabled them with adding NVIDIA card in order to test and use AI to their data. And this was something that we developed over the past couple of months here together with Göteborgs universitet. So this is a concrete example that how we can use our competence and what we are doing on a daily basis together with our customer. This picture is actually something I really like, and I will guide you through it, because this, in essence, describes what Proact is doing. So if you look into the blue part here, there it says data management, and it says on-premise, private cloud and public cloud. This is actually how every company is built up, because if you have a tech infrastructure, you need to store your data somewhere. Either it can be on-prem, meaning that you have your own hardware and things within your company, then we can help you with that. Either you outsource and have your data in a private cloud provider like us, then we can help you with that. Or you take help of Microsoft, Google or Amazon and have your data stored in their public cloud, then we can help you with that. And this blue part is actually the core of what Proact has been doing for 30 years. We are experts in this field. And it doesn't really matter if your data is located on-prem or in the cloud. We are there to help you. And in today's society, every customer have this setup and structure. And it is how we design IT infrastructure today. And then, of course, you see the yellow part here. Of course, we want to do something with our data. We are using AI to extract more data, do things more quicker. Then you need to have a foundation that your AI are operating on. And this is what we are helping you. And today also some of the hardware are moving into more into software with cloud and native and container technology. And this is a way to develop applications quicker. Here we also have experts that are doing this on a day to day basis that can help you. And of course, all of this happens around the key value for the customer is protect the data. make sure that you have a backup or recovery make sure that your data is secure and if something happened then we are there to help you and to the right here you see This is also how we can deliver it. Either we can help you and sell only technology or we can sell technology with premium support or we can sell it as a service. It doesn't really matter. So this is really a flexibility that we have as a company. And at the end of the day, we have super skilled 1200 people that are here for helping our customer. So I think Proact as a European trusted local partner, we have a really good position to be in. So I'm really feeling excited about this, I realized when I talked to you. So with this, that was both a short background about Proact and also around our market. So going over to some key highlights here. As I mentioned in the introduction, I'm a successor of Jonas Hasseberg, first of March, and I've been working with Jonas since the last three years, so I have a good understanding of our business. But even more exciting was that we acquired Black York, which is a British consultancy company based in UK that are experts in cloud transformation and Azure technology. So it's fantastic to have them on board and joining the Proact family. Their cutting edge knowledge will for sure help us going forward. And for us, the UK is a super important market. So with them on board, we also feel confident that we have strengthened our UK position. What was also really, really great during the quarter was that we was named enterprise partner of the year by NetApp. NetApp is a global expert company within data storage. We have a super long relationship together with NetApp and we're helping a lot of our customers with NetApp technology. But just to be named this and be best in Europe, I think that is a testimonial to our skills, foremost for our own staff that are working on this with a daily basis. So this is good. And when it comes to the financials, and Nora will guide you through here very shortly, but we had a revenue of 1.2 billion. And our EBITDA landed around 80 million. And Nora, Would you be so glad to walk us through the more details of this?