I believe we can start,

yeah?

Let's start. Welcome everybody.

I think Monika, recording is on, yes? I hope so.

Welcome everybody. Traditionally, Q4 and whole year results with some prospects and assumptions for 2026.

This will be mentioned by the end of the presentation, and we will present everything in traditional format, as usually. Short summary or highlights for 2025, yes?

If we take away one-offs, we had quite solid operating profit growth, yes? Adjusted by one-offs, the biggest growth has been seen in dedicated solutions, mostly in the energy sector billing solutions and utility sector, as well as the highway tunnel software monitoring company.

This was very, very big growth and very dynamic. Banking has performed better than expected, and we're very happy from it, and we do expect similar performance in '26.

This contributed highly. In Payment, we had some slow-downs and disappointments because in Turkey, two of our big customers decided to go in-house with their gateway systems, which reduced number of transactions, and this will impact also '26, even though we try to compensate this with other business to keep the results pretty flat in Turkey.

In India and UAE, as you are aware, we did not like the investment we've made, we were performing some write-offs. A lot of things were written off.

Still, there is some things on the balance sheet. We will see in 2026 if there is any hope for this companies or not.

The independent ATM network has been performing reasonably, but in Albania, our competition aggressively entered. Compared to '24, '25 was weaker by around 800k.

Direct merchant payment lines were performing much better, ECR business and independent POS business has grown by almost 1 million, as well as traditional POS ATM business also grew a bit by half a million. Cash generation very much improved compared to '24, when is back on track, and the conversion of EBITDA to cash is good.

Michal will show the details later. In transactional business, as mentioned, e-comm drops mostly due to Turkey, and IPD business grew by 53%, a big contributor from Romania, and processing of physical cards also nicely grew by above 20%.

Let's look at the numbers now. Okay.

Let's start with Q4 numbers. For those who know, they will recall.

For others, we'll explain the slide. First two columns on the left are total numbers as they are reported in our financial statements, and then following two are excluding hyperinflation reporting in Turkey.

We'll focus on those excluding hyperinflation effects. On top line, 13% growth, pretty nice, but a lot better on operating profit level, 62% growth year-over-year, and 23 on net profit level.

This difference between operating profit and net profit results mostly from three elements. One, €3.7 million is goodwill write-off related to India and Dubai, what Piotr mentioned, we are not satisfied with performance, and we did additional write-offs in Q4.

Then we have €3 million effect of restatement or recalculation of put option liabilities related mostly with the companies in Bosnia and Herzegovina, and as you will see on following slides, these are companies which generated huge growth year-over-year, and this is why we need to re-evaluate those liabilities. The last from those big impacts is around €1 million increase taxes, but it's not like regular tax our subsidiaries pay, but additional tax related to Pillar 2 taxation.

Again, quite big part of this value is related with Bosnian operations, and for you to understand, in Bosnia, corporate income tax is 10%, whereas this minimum requested by Pillar 2 is 15%, of course this is not that simple calculation, but some additional tax to Bosnian operations will be generated. If we look at results excluding one-offs, in Q4 on operating profit level, difference is not big, 600k only, but on net profit is bigger, €4.3 million, and this is mostly this write-off of goodwill which I already mentioned.

If we exclude this write-off, year-over-year growth of net profit is pretty close to operating profit and is around 60%. Let's move to results by segments, by business units.

As already mentioned, dedicated solutions results are very good, €11 million growth of revenues and €9 million growth of operating profit, mostly thanks to operations in Bosnia and Herzegovina in area of solutions for utilities, billing and ERPs, and intelligent traffic solutions. A bit weaker Serbia, Romania, and Macedonia if we look at Q4 only.

Another good quarter for Banking, €1.7 million higher result year-over-year, and here it is mostly thanks to operations in Serbia and Macedonia. Payment, pretty flat in Q4, half a million higher revenues, 600k lower operating profit.

If we look by business lines, you can see this drop in e-commerce, drop of revenues. Here we have effect of problematic India and Dubai, and Turkey where we lost two clients and they moved to in-source solution.

If we go to geographies, so as already mentioned, Bosnia, very good performance and significant growth of result, more than €10 million higher, mostly in dedicated solutions. In Macedonia, this increase is thanks to Banking mostly, and Central Europe decrease of result, it is in Banking and dedicated solutions.

Western Europe, good performance, increase by €1.2 million year-over-year in Payment, both in e-commerce payment gateway solution and in more traditional POS-related business. Turkey, drop by €1.5 million, and as already mentioned, related to e-commerce and lost clients, and of course problematic India and Middle East.

Let's move to results for whole 2025. This looks good, quite similar to Q4, only lower dynamics year-over-year.

Revenues, 9% growth, operating profit, 16% growth, and net profit, a slight decline year-over-year, 4%. Reasons, I can say the same as for Q4, we have goodwill write-offs, which were netted by earn-outs reversal, in India and Dubai, not big impact.

€7.5 million effect of revaluation of put liabilities mostly related with Bosnian subsidiaries, Dwelcon and BSST. This tax impact of Pillar 2 exactly the same because we booked this in Q4.

Additionally, beginning of the year, we sold one entity, and it generated some accounting loss. First one-offs, what would be if we exclude those write-offs related to India and Dubai and some reversals, on operating profit, €5.6 million is total effect of one-offs booked mostly in Q4, and on net profit level, it is €6 million, and here it was partially booked in Q3 and, as we already heard, partially in Q4.

Let's move to segments. Banking, very good year for Banking, and despite beginning of the year we were a bit more conservative, we didn't have huge projects as in previous years, but still we managed to deliver a lot of smaller projects, mostly in area of core banking, which generated pretty nice increase of operating profit.

Spectacular dedicated solutions. Revenues grow with only €10 million, whereas operating profit 15, but this is related to change of structure of business.

Growth was generated on own solution, and we have drop of third-party solutions where profitability is significantly lower, and we have this component of third-party COGS, revenue drop does not translate that much into drop of operating profit. In Payment, €15 million growth of revenues, but drop of operating profit, 15, €5 million.

If we look structure by business lines, all of them are growing. The biggest one is direct-to-merchant business in area of ECRs and IPD, electronic cash registers and independent POS network.

Both it also translated into growth of operating profit as mentioned before. In e-comm, we did have growth of revenues, but quite significant drop of result.

India and Dubai, which generated operating losses, and this drop in Turkey by more than €3 million, what you will see also in a moment on another slide by geographies. POS and ATM, pretty stable, some growth of revenues and slight growth of operating profit.

If we look by countries, Bosnia again, the biggest growth, €17 million, more than €17 million year-over-year. As we already mentioned, mostly dedicated solutions and those projects for utilities and related with intelligent traffic solutions, tunnels and highways.

Good Macedonia, growth mostly in Banking. In Croatia, weaker Banking, but a lot stronger Payments and in total growth.

Slightly weaker Serbia, but with growing Banking and with dedicated solutions. Central Europe growth by 600k, mostly thanks to Banking.

In Western Europe, as you see, result is pretty flat, but there is change of structure, growing e-commerce and independent networks, mostly ECRs, and drop in this more traditional POS-related business. India and Dubai, already mentioned the challenges we have there, and drop in Turkey is mostly related with e-commerce.

Let's move to cash flow and liquidity position. Cash flow, as Piotr already mentioned, was good.

Almost €75 million generated operating cash flow. This gives conversion operating cash flow to EBITDA 83%, we can say we are back on track after weak 2024.

Investments, those related with fixed assets and intangible assets, project-related part, equipment for outsourcing, mostly in Payment business unit and partially in dedicated, very similar to the ones in 2024. M&A expenditures, they were lower this year, €11 million, almost half of this or over half even of this in Q4 when we acquired minority stake in Necomplus operations in Western Europe, and now we have 100% there.

Let's move to balance sheet position. Pretty good cash, €74 million cash in the group, €10 million more than end of 2024.

External debt from banks, short-term part is slightly lower by €2.5 million. Leases and dividends, standard changes, nothing spectacular.

M&A liabilities, here we have growth, but this is mostly not due to new acquisitions, but just moving those liabilities from long-term to short-term and restatement based on better performance of subsidiaries. As I already mentioned when I was commenting P&L and impact on net profit.

Net cash €25 million, and when talking about other short-term assets, receivables, they increased a bit more than liabilities, and this is related with again, operations in Bosnia and Herzegovina mostly. At the end of the year, we received acceptances from clients, invoices were issued, but not collected before year-end.

Inventory in line with expectations, balance decreased from this huge one at the end of 2024, and now it's around €60 million. As usual, it is mostly related with POS and ATM business.

This is all, and let's move to outlook for '26.

For '26, the back of dynamics for the whole group is 8% Q1, 6% for the whole year. It's bigger for ASE part, dedicated solution and Banking, and smaller for Payten part, mostly Turkey probably being the reason with the issue that we had in '25.

Overall, we have quite positive outlook. We expect growth in operating profit, something in high single digits or low double digits numbers, and so far we don't have bad signals of this.

This growth in profit will come from organic growth, but not only from the net revenue growth, but also from the increase in efficiency and productivity of our teams, which we have many projects that were initiated in that area, and we expect some very positive effects in that scope. Having said that, we are open to questions.

Anybody has any questions, please feel free. We'll unmute you, and we can discuss.

There are questions always about acquisitions. We continue to do acquisitions.

We have in the pipeline couple of companies, but we cannot say until we finalize due diligence and go for the internal group approvals if we will pursue this acquisitions, but my personal judgment is these are small, mid-sized companies, and probably two, three companies might be acquired in '26. Well...

Are there any questions?

We have something in chat.

You can ask on chat the questions also, please feel free. "What do we think about the interaction between AI and software?"

AI is a tool. It's a very attractive tool, and like any tool, it helps to be better, yes?

It's not a remedy to build, produce things. I've given earlier today an example on the Polish conference that you can compare it to the construction segment and sector, where many materials or processes were automatized and improved, and it's being over time.

It doesn't guarantee you build a good house or proper apartment house thanks to these new materials, but if you don't use them, definitely you will be too expensive and you'll fail, or the quality will not be as good as it could be. AI is a must.

It's one-way ticket to use it. It will reduce cost in many areas.

It will increase efficiency in many, many areas, but it will not replace the whole development delivery process of the teams, as our intelligence—not only artificial, but human—will be desperately needed also to use in intelligent way the AI tools. Any other?

I think there's other chat questions. "What are the reasons why some of our customers decided to do it in-house?

What are usually the key considerations for customers in deciding to go in-house?" This applies actually to the gateway, e-comm gateway solution in Turkey, and these customers were very big banks, one of the biggest banks in Turkey.

We have here two aspects overlapping. One is very specific for Turkey, culture of doing things in-house overall.

It's, I would say, it's over-proportionate compared to other markets. Second, big institutions who can afford to do so and who can risk delays and bigger budgets in this type of projects.

Smaller institutions would not do it, or if they do, they cannot bear the failure, yes? We had such cases also in Turkey.

This is only for the big customers in Turkey, and the reason is as mentioned. Any other questions, please?

We have four such customers in Turkey. Two of them are going in-house.

It might be that two others will also go in-house like that, but we are getting prepared for that, and this is something we expect to happen within next couple of years to expand this answer. If there is no more questions, we invite you to direct contact.

Something? Is there anymore?

No. "Are we actively investing into agentic AI for Banking and dedicated solutions?"

Yes, we have agentic AIs tools, our own, and we are selling them to the banks, and not only banks, offering them, yes? This is something we are doing, using, or connecting it to our solutions.

"Would the AI lead to lower cost or hurdle in developing some good in-house software in-house, or it's vice versa as our cost of providing services also gets lower?" AI helps us to develop things cheaper, quicker, and in reasonable quality.

Not only develop, but also test it and verify it, yes? It requires good operators, yes?

It will lower the cost, yes, or if not lower the cost, but this is de facto the same, allow us to produce or deliver more. We are in process of doing it, verifying.

"What kind of agentic AI tool do you use?" Yes, we use Claude, we use many, many others, yes?

We are not restricting our people as to the tools. The only restrictions we have as to the privacy policy, confidentiality, to make sure we are not disclosing customer data or some sensitive information.

There's many tools that are being used. "What drove the strong expansion in gross margin in Q4 and the massive reduction in CapEx?"

As for margin expansion, it's mostly dedicated solution recognition in the energy sector a bit accelerated. Delivery was in course of the year, but because of accelerated acceptance by the customers of projects, mostly Bosnia and Herzegovina wind utility sector, energy sector, this has been the major impact.

Usually Q4 is stronger every year, but this one effect that I mentioned now, it was different than other years, and it contributed on top of the other traditional cumulative effects year-on-year. As to the reduction CapEx, Michał?

If we look per whole year, there is no big reduction of CapEx, yes? It's

simply

seasonality, yes.

Some seasonality, yes.

More things were bought earlier and nothing spectacular. If you think about this M&A CapEx, we simply didn't have

M&A.

new M&As

in Q4.

Or whole year.

Wait. "Do you think one of the key moat value of us in our deep understanding of clients' workflow?

If not, what do you think is the key value added from us to our clients in the long term? From us, this probably from one of our employees."

Yes, the answer, yes, understanding the customer business processes, if I understand the question rightly, and being able to tailor and translate not only solutions, but technology overall and cover the customer needs. It's something that is the huge value added on our side.

Something where we can provide bigger value add is how to communicate with customers. In other words, I think we are heavily undervaluing what we provide because we are positioning ourselves as commodity providers very often instead of value providers and solution providers to the customers with more proactive approach

helping [unclear] problems.

I think we have to mute somebody. Somebody is not Muted.

Okay. "Should we anticipate that segments to remain at elevated margin levels?

Are these figures sustainable? Should we read this as a change in strategy or just a quarterly timing impact?"

When it comes to dedicated solutions and this utilities billing thing, it was a one-time effect. This one company is performing very well, but they have in BH recorded a record of over €12, €13 million operating profit, in euros, yes?

Where this year we expect closer to 5 for them, yes? It will be much lower, whereas other dedicated solution operations, we expect to grow significantly, yes?

This will compensate for this drop in this one company and business. There was a one big effect in Q4 '25 and which I just described.

"What are the thoughts on the ATM business? Would you sell any of your PP&E?"

Fixed assets.

Okay, "fixed assets? Looks like gross margins went up at Payten, how?

If you can't answer this now, maybe we can hop on a call later." I can answer generally.

Traditional ATM business is more and more becoming competitive commodity business. The pressure on margins will be growing here, yes?

Again, as you see in many other industries, not this Payment or other, the commodity business are phasing out much longer than others expect, yes? We treat this as a cash cow, yes?

We don't believe in dynamic growth here long-term, yes? We believe in protecting the positions and generating value-added service around it using our market position.

As to the sale of the fixed assets, people in commerce say nothing is for sale until the price is right, yes? We are not actively searching to sell it, and we're not thinking about it at all, yes?

Never say never. "What kind of pricing framework are you using for agentic AI sales?"

That's a good question. Listen, not agentic AI, for all our business, we are looking and trying to redefine our price carriers, yes?

Because a lot of our business has had traditional price carriers or none of then, actually. They were fixed price with some indexation, yes, for a solution, yes.

Now we are looking how to connect it to the business process of the customer to grow together with the customer providing value for the customer, but also benefiting from the growth. It depends very much on the usage.

Here we are very flexible, but we are also having internal exercises we started how to redefine this not only for agentic AI, but for all the solutions. Any other questions?

If I missed some question, let me know. Looking, reading the chat.

I think that's it. Let's give ourselves a few seconds if there's any more questions.

We really invite you to direct contact. The closed period is over, we can be much more open and direct with you and discuss.

We are looking very forward to these contacts with you and to this year hoping to perform well, or make you happy. Wait, I heard a click, is there anything else on the

No,

no message.

No.

Thank you very much. All the best, enjoy the afternoon.

Bye-bye.

Bye. Bye.