Good morning everyone, and warm welcome to our Q4 result. I'm Magnus Lönn, and I'm CEO of Proact, and I'm here today with Åsa Regen, an old colleague that is coming back, which is really good to have you back, Åsa.

Warm welcome. I will do a short presentation of Proact for you that hasn't maybe followed us, you get a good overview of what we're doing.

This Q4 also ends my first year as a CEO of Proact, therefore I will give you all some sort of initial reflection of the year that has been executing. Then we will, of course, look into our quarterly highlights, and Åsa will guide us through the financial result, and then we will end up with a summary at the end and questions.

For you that haven't really followed us, Proact is a Swedish tech company that are really, really experts in helping our customer securing and managing their data. This is something that we have been doing for plus 30 years and, I would say, are best in class when it comes to that.

As society have developed, you can imagine that handling and making sure that data is secured in a secure way is essential for basically every company. This is what we are really, really good at.

If you can see in the graph here, we are represented in Northern Europe, and over the years to the right you see in the slides here we have also been on a growth journey. We are having a turnover around 5 billion Swedish kronor and have been stock listed since '99.

All in all, we are 1,100 employees that are working across Europe to take care of our customers. If we move into our revenue streams and how we are generating our result here is that we have four distinct revenue streams, and I will walk them through so you get an understanding and more insights to what we're doing.

We have System, and this is our sort of core business. In basic, we are helping our customers provide them with designing and also acquiring and installing infrastructure, which is crucial.

It could either be data storage, it can be servers, it can be GPU around AI infrastructure. This is a large part of our competence and what we're doing on a daily basis.

Our System business is quite positive one because we do the deals and then we get the money upfront, we as a company doesn't possess any risk and things like that. If you're following us, you also may have noticed that our income from our System business can vary between the quarters because we are working on large and medium-sized customer, and the size of a system deal can be quite large, then it can depend if it comes on the right side of the quarter or if it's the next.

If you're evaluating us, then you should look into our System business over a longer time period. I usually say that the System business is actually a recurring revenue because we have very high customer satisfaction, even if the customer buy a hardware from us, often they do that in the coming year and we have very long customer relationships.

When it comes to our Support, that means that everything that we are selling, most often we also provide our own support, meaning that we have technicians that are helping our customer to fix if there is any problem, and so forth. The support is a good example of our recurring revenue.

Often we contract a customer on a 3- to 5-year basis, meaning that we create really long customer connections. Then as a complement, we also have our managed cloud services, and that is that we are actually selling and providing our customer with services.

Instead of them buying a system from us, we can provide them that as a service. This is an area that has been growing for us the last couple of years and then that we are sort of focusing in, because this is also an example of good recurring revenues that we have as a company.

Then, of course, nothing can be done if you don't have really, really skilled experts and so forth, and we also have consultants that are out working and advising our customers. All of this four revenue stream is what compose Proact and that we're working on a daily basis.

They also quite interconnect, it's very often that you start with a customer on System, and then we add on additional services and so forth. Of course, as you all know, there are some key drivers in the market.

It's all about the digitalization. Data amount is growing.

On top of that, you have cybersecurity. I can't come up with a company that don't have this high up on the agenda and also on the board level when it comes to their own business.

Of course, in the latest, AI and creating leverage of that, that is a key driver and something that we are working daily with our customer. Moving over to our Q4 highlights, and Åsa will help me walk through the financial details here, but as you all know, I've been communicating throughout the year we have made an cost efficiency program across the year to improve that.

During Q4 here, we actually conclude that, and I expect that we will see the outcome of that second half of this year with a yearly cost saving of around 80 million. Also, in December, I'm really, really glad that we welcomed in Conoa, a Danish tech company that we acquired, and this will, of course, strengthen our really good position that we have in the Nordics.

I'm really glad to welcome them on board. Also, during the quarter, I have appointed a lot of new senior leadership within the company.

I'm glad to welcome Åsa back as a CFO. In my old role as Business Unit Director for Nordic and Baltics, I'm glad to welcome Nicklas Jakobsson, who was previously CEO of Dell Sweden.

He will be a great addition to the team and also to the management team. Also in Central, I have appointed Jacob [unclear] as an interim BUD for our Central business units since Maria left the organization.

Also during the quarter, we were appointed the Global Innovation Partner from NetApp, and this was a good example of the competence that we have been doing together with NetApp around security. Worth mentioning is that after the quarter, we also were awarded from Broadcom that we are one of the few selected VMware Cloud Service Provider, and I think that is also a great testimony to our competence that we have within the company.

Our board have also proposed an increased dividend to the upcoming annual general meeting, and that's 2.6 Swedish kronor per share. As I said in the beginning, this is [unclear] Okay, I don't see the slide.

[laughter] Sorry. As I saw in the beginning, this is also a conclusion of my first year as a CEO.

If I make some reflections, I think Proact as a company, I will say it's a fantastic company that is based upon solid competence and solid foundation and solid finance, and that's always a good start. We have an extreme deep expertise in the area that we are doing.

If you think about that, when it comes to data protection, security, and AI, as I said in the beginning, every company is in need of that. I think if you look into our portfolio, we have a really good mix of both recurring revenue, but also our System business.

I think from a sort of revenue perspective, we have a really good balance there. Foremost, we have been doing this and develop our skills, I would say that we are really trustworthy when we speak about us as a company.

Also everything that's happened now in the macroeconomics, I would say that being an European service provider is a very good asset. Then also, if I look to us as a company, I also see some clear execution gap when it comes to our history and the performance here.

I think very few really have a good understanding of what we're doing, and maybe we have not been super good in telling the story and explain what we're doing and the value that we add to our customer. That's something I see that we can improve going forward.

Then when it comes to profitability, I also see that we have not been good in creating profitability outside our Nordic business. If you can see the graph here, the red bar here is the profitability from our Nordic business, and as you can see, this has been actually growing.

Prior I joined as CEO of Proact, I was responsible for that business units. Our business outside Nordic over the past year has been going in the other direction.

We have been doing some M&A, and if you look into the outcome, I think historically we have been underperforming, also that if you take aside the acquisition that has been done outside the Nordic region. I also think that we have been overexposed to low-margin and non-repeatable deals also when I look into the company as a whole, except maybe for our business unit outside the Nordic.

For me, this has been a sort of a year of really getting better understanding of our all business and also setting the direction, and I see some clear actions that we can take to really address this. If we take the next slide.

During the year, I have implemented a new post-M&A model, meaning that where we are not spending internal time integrating the acquired company, instead we are investing all our effort and time in making sure that we focus on sales and what additional value that we can bring to our customer. I think a clear, good example of that approach has been BlackDice that we acquired earlier this year, that has been a really good addition to our UK business.

We have implemented a overall group cost program in order to really improve also and maybe enhance our execution capabilities. That is my expectation that we will see the impact of that in the coming second half of this year.

I also made a lot of changes to the leadership and also simplify how we work internally. I truly believe that we as a company with the competence that we have, we should focus even more on high-margin services.

We have during the year launched our AI offering and also Kubernetes offering. Kubernetes, for those of you that are not that familiar, that is the sort of operating system for all AI workloads out there.

I think what we're seeing is an total increase demand for that service. Of course, continue to improve our focus in West and Central.

Even if it's a little bit early, I'm sort of still positive around that. Of course, this work will continue.

Really looking forward to update you all around the progress later this year. Åsa, with that said, should we move over to the finance?

Yes, thank you, Magnus, and hello, everyone. Let's have a closer look at the financials starting with total revenue.

Total revenue in the quarter amounted to 1 billion 208 million SEK, which is a decline of 4.8% versus previous year on reported as well as like-for-like basis. System sales, which are volatile by nature, were down 6.8% to 665.8 million SEK.

Sales declined across all markets except in West. The development in Nordic and Baltics was also affected by a strong comparative quarter.

Service revenue amounted to 541.3 million SEK, a decline of 1.9%, where growth in support and cloud services in Nordics and Baltics, together with a positive contribution from BlackDice in the UK, were offset by weaker service sales in West and Central. For the full year, total revenue amounted to 4 billion 679 million SEK, a decline of 3.8% versus previous year on reported as well as like-for-like basis.

Systems revenues were down 5.1% and 3.8% on an organic basis to 2 billion 550 million SEK. The decline was driven by West and Central, whereas Nordics and Baltics grew by 2.9% and UK was close to flat on a reported basis.

Service revenue were down 2.2% and 3.7% on a like-for-like basis to 2 billion 124 million SEK. The increase in Nordics, as well as in UK with positive contribution from BlackDice, was offset by decline in West and Central.

All in all, the service business accounted for 45.4% of total revenue for the period, compared to 44.6% in 2024. Intake of new contracts for cloud services amounted to 130 138 million SEK in the quarter, compared to 224 million SEK in Q4 '24.

The lower intake in Q4 can partly be explained by timing and a strong Q3. For the full year, new contracts amounting to value of 650 million SEK were signed, a slight increase of 1.1% compared to 2024.

Total revenue from cloud services amounted to 272 million SEK, a decline of 4.3% and 3.4% on an organic basis, driven by lower sales and customer churn in West and Central, offsetting growth in Nordics and Baltics. Recurring revenue from support and cloud services declined by 2.3% in the quarter, which also is reflected in the annual recurring revenue measures, which is calculated as revenue in the quarter times four.

Moving on to the results. 2025 and Q4 ended on a positive note with an adjusted EBITA, excluding one-off costs related to the cost efficiency program and costs related to the acquisition of Conoa, of 84.9 million SEK, which is an increase of 5.9% compared to Q4 last year.

The lower revenue is compensated by lower sales and administration cost related to sales commission and positive effects from the cost efficiency program. Full year adjusted EBITA amounted to 316 million SEK, corresponding to a decrease of 9.9% compared to previous year.

Profitable growth in Business Unit Nordics and Baltics and Business Units UK mitigate to some extent the weaker performance in West and Central. The cost efficiency program performed during the year, which Magnus talked about, is expected to deliver savings of around 80 million SEK on a yearly basis, with full effect from the second half of this year.

In 2020 Moving over to cash. In 2025, the cash was put into use, completing two acquisitions: BlackDice in the UK and Conoa in Denmark, and continuing the share buyback program in line with the mandate from the Annual General Meeting.

Net cash flow in Q4 amounted to 24 million SEK, of which 229 million SEK from operating activities. Investment activities consumed 96 million, of which 93 million SEK related to the acquisition of Conoa.

Cash flow from financing activities amounted to 100 108.7 million SEK, largely related to amortization of lease liabilities and share buyback. A quick look, or brief comment to the performance in the different business units, starting with NOBA, or Nordic and Baltics.

The total revenue amounted to 711 million SEK in the quarter, a decline of 0.9% versus Q4 '24, that as mentioned was a very strong quarter. Adjusted EBITA in Q4 was also a bit behind last year, primarily from lower margins in system sales.

Full year, revenue grew by 4.4% to 2 billion 642 million, driven by systems as well as service revenue. The adjusted EBITA increased by 4.7% to 272 million SEK, corresponding to an adjusted EBITA margin of 9.6%.

Traveling a bit west to the UK, total revenue amounted to 287 million SEK in Q4, which is an increase of 6.9%, largely driven by an increase in service revenue in BlackDice. The increase on an organic basis was 0.9%.

Adjusted EBITA amounted to 14 million SEK compared to 3 million SEK last year. The increase is partly from BlackDice's contribution, but also from improved efficiencies in underlying businesses.

Full year, revenue grew by 7.3% to 761 million SEK, driven by services and BlackDice contribution. Adjusted EBITA amounted to 43.4 million SEK, and the EBITA margin increased to 5.7%.

West, a challenging year for Business Unit West, ended however on an upward trend. Total revenue amounted to 186 million SEK, a decline of 6.1% and 1.9% on a like-for-like basis, driven by lower systems sales.

Adjusted EBITA amounted to 4.3 million SEK, which is a small increase from 3.9 million SEK last year. Full year, revenue amounted to 718 million SEK, a decrease of 15.4% and 12.6% on an organic basis.

Adjusted EBITA for the full year amounted to -2.1 million SEK, which is a result of low revenue and a cost base not fully adapted. Lastly then, Central.

Total revenue amounted to 153 million SEK, a decrease of 27% and 23.5% organically. Lower system sales are the main driver behind the decline, but revenue from services decreased as well.

Cost savings mitigated part of the shortfall in revenue, and adjusted EBITA for the quarter amounted to 1.5 million SEK. The full year revenue amounted to 672 million SEK, a decline of 24.4% compared to last year and 21.9% on an organic basis.

Adjusted EBITA amounted to -5.5 million SEK as a consequence of the decline in revenue and not fully adjusted cost structure. I think that was it, back to you, Magnus, for some closing remarks.

Ja men super, and thanks, Åsa. Just to sum up then over the year.

As you can see, super glad that we have two business units that have actually growing, and that we are well on the way to sort of address the challenges that we have with other two. We are on good progress.

Throughout the year, we have been really valued that we are a true European independent partner, and that is something that our customer are really coming to us and really appreciate when we work to them. I think we have a super good position.

As everything that is happening now with cloud data and AI, I think we have throughout the year really demonstrate that to our customers. We have, during the year, made two great acquisitions, both BlackDice and now the Danish Conoa, and we have also improved and strengthen our leadership, I think we have a really solid base.

As we also mentioned, we have throughout the year also been doing a cost efficiency program that I now expect that we will see the impact of during the second half of this year, with a savings of around 80 million SEK. We have also seen that the work that we have carrying out slowly is getting the result, and I myself are very confident, especially since my history in the Nordic and Baltic region, that we as a company, we can do it, and we will do it, and so I think we are on a good trajectory.

Looking forward, I think for us, 2026 is what we are doing, we will continue to focus on profitable growth and improve what we're doing in West and Central. As I also said in the beginning, we are doing a total review of our product portfolio and customer offering, and I'm really aiming to update you all around the progress and the key conclusions of that in the coming quarters and later on this year.

With that said, I think we should open up for questions. I actually spotted a question already in the chat here that I can address, because I think many of you already probably have it: How do we treat the increased price of memory that is happening in the tech industry?

The thing is that we as a company, we don't take any risk at all around this because all the price increases we don't buy before we have sold something, meaning that we inform our customer around the new price, and then we negotiate as good as we can. We as a company don't take any risk around that.

The impact of it is that I think short-term we probably most likely see an uplift in our coming sales because many customer would like to buy before the price increases fully hits the market. Of course, you can think about the long-term impact because at the end of the day somewhere our customer needs to find the money and pay for it.

I think in the area that we are working with, critical infrastructure, it's very hard for customer not to prioritize that. I think short-term it will probably see a boost of it, and long-term it will maybe be a little bit more savings.

With that said, maybe we can open up for questions. Daniel, I saw you raised your hand.

Yes, thank you very much, Magnus. I had the first question on memory prices there, but you answered it already.

Let's go on. I have a question on cloud orders here in Q4.

They were down year-over-year. Is that a trend shift in the market, or just quarterly lumpiness given the strong Q3, and can you give some kind of outlook for '26?

I don't think it's a general trend that it will go down year-on-year. I think the answer to it is, first of all, we have had execution issues during the year in our business units Central and West, and that is one of the impact.

Apart from that, I think the general trend is that companies are really sort of scrutinizing where they are locating their data. A general trend that we have seen throughout the year is that many companies are revisiting their cloud-first strategy, meaning that they are not sure anymore that they should place all the critical data in either Azure or Google or Amazon.

Maybe that's a general trend.

I see. That's helpful.

Then a question on customer demand. Do you see any differences between public customer spending today versus enterprises?

Are enterprises perhaps a bit more cautious today, and they invest more in experiencing AI, for example, and postponing data storage? Or do you see any differences?

Ja men, it's a good question. I think all in all, if we look back, especially maybe in the Northern Europe, we have invested, and basically all the public customer have invested a lot in securing their critical infrastructure, and that is most related to the macroeconomics with war in Ukraine, NATO, and things like that.

I predict that we will continue to see more investment also in the public domain because many of our authorities are trying to be more efficient, and they are doing more and more with AI. If you should do anything around AI, you really need to have data and good data, I see that.

When it comes to enterprise customer, I see that they continue to invest. Many of the enterprise customer also have the money to invest, they might try to compensate price increases and things like that.

When it comes to smaller customers, even if you do not have that many of them, they are a little bit more price-conscious, they are not having the possibility to invest in advance to compensate for future cost increases. That's maybe the general trend I see.

I see. That's good.

Then another one on cost level. You mentioned the 80 million cost savings into 2026.

Should that be compared to roughly where we close to 2024, i.e. before you started with all the actions during 2025?

I'm looking at Åsa because she has a good answer.

[laughter] I hope so. It's, of course, a little bit of a mixture.

We are comparing to 2024. We also have some inflation in the cost base in 2025 that is not per se then affected.

In large, I would say that it is the cost base running 12 from half-year '25, maybe, that it should be compared to. Then, well, of course, we do foresee to invest also in growth.

Within the underlying cost base, I would say that the more relevant comparable would probably be running 12 per half-year '25, if that makes sense.

Absolutely. That's helpful.

Then, all in all, given 80 million cost savings from that level, you have also acquired BlackDice and Conoa, and if we just take the company standalone today, do you expect '26 OPEX in total to be higher or lower than 2025?

Mmm.

Because the 80 million will be on the underlying business, and then you have added two acquisitions.

I

was just interested about the net effect there, if it's going to help.

Yeah. No, we do expect it to increase somewhat, but then on the back of investments, and not the least then in Conoa and BlackDice full year.

I also want to just restress what Åsa said here because we're also doing investments in our business to grow, and that, of course, could impact our cost levels. That's just to set some more flavor on that answer.

Yeah. That's helpful.

Then a final one on the cash flow here from leasing. You showed it in the slide as well, but in Q4 the level was twice as high as previous quarters.

Were there any one-offs in there, or should we expect the 64 million per quarter ahead? It looks high.

Yes, and I think here we actually have a little bit of a classification, I would say, if not errors, something we have to look into because, as you say, it's twice as high, and that is not a one-off, but it refers to we have part of the amortization there for the earn-out which we, yeah, we are overlooking how to handle. Nothing specific when it comes to the leasing.

The first three quarters of the year is a better proxy for the level in '26?

They are more representative, yes. That's [unclear].

I see. Okay.

Thank you very much.

Super. I'm looking into the chat here.

We also got some questions. I think we answered around the storage prices and you explained around the lease there, Åsa.

"Do you intend to make an acquisition in Central and West units to expand your product portfolio and customer offering?" I have been repeatedly saying this throughout the year, and I'm really standing firm on this that we will only do acquisitions when we feel that we have a good execution in place.

We are well underway in both Germany and Holland on that. I see that we have a strong leadership team both in Holland and also now with the new leadership team in Germany, but we need to improve a little bit more.

Once we have done that, I will for sure look into further acquisition in that area, but we're not there yet. Short-term we are really looking forward to do additional acquisition when we find a suitable target in the Nordic and the UK area.

Then there was a question around cost savings. I think that has been answered.

"Capital allocation: M&A versus buybacks on current valuations." I think we as a company are in a really good shape, we can actually handle all three.

We can buy and we can invest in our company, we are providing dividend, and we are doing buybacks when it comes to our own shares. That's a luxury for us as a company being in that position.

Then there is a question: "Is AI driving up demand for hardware that net affects you negatively when hardware becomes a large part of system deals? How do you see AI affecting you over the coming 10 years?"

What will happen in 10 years is a million-dollar question. The only thing, and I've been working in the tech industry for 25 years, is that it will continue to develop.

I am also certain that with a sort of solid foundation that Proact has, and that is based upon knowledge, we will play a critical part in this development the coming 10 years as well. When it comes to AI, we are expert in handling and building the infrastructure needed for AI, and that is an area where I still think that we should be in and should invest even more in.

Looking ahead, I think we as a company, we will probably most likely release new services related to AI, we will add additional value-add to our customer related to AI and things like that, but we will remain in our sort of position where we are expert in a sort of handling and taking care of the critical infrastructure for our customers. Then there was a question around COGS.

I think we have answered that. Yeah.

Open up for some other questions to group. Let's see.

Then there were some question here also in the chat: "Can you please clarify the timing of the cost-cutting benefits? You suggested from mid-2026.

Does that mean that you get just 40 million benefits in 2026, or do you mean that you get the full benefits?" That we get the full benefits out of the 80 million half of this year.

We are already now well underway executing, but in order to see the full impact of it, we need to have an additional time to sort of finalize our execution around it. Good.

With that, I will thank you all for great questions and that you are following us. As I said, me, Åsa, and the whole team at Proact are really looking forward to continue and update you the coming quarters, and foremost also on the work that we're doing in revisiting our business to get back to even more profitable growth going forward.

All, thanks for today and talk to you soon again.