Welcome to this Q4 and full year 2025 release presentation for WeSports Group. I am happy to look back at a year that has again proven our model, with strong performance in the different WeSports companies.

My name is Ted Sporre, and I am the Group CEO. With me today I have our CFO Tim Holmlund Meier, and our Group COO and co-founder Niklas Hammar will also join for the Q&A later.

We will start by an introduction to WeSports Group, then I will give a summary of the fourth quarter as well as a business update where I give some more depth to Q4 and put the full year into perspective. After that, Tim will give a financial update before I conclude with key takeaways.

We will finalize with the regular Q&A, which will be moderated by our operator, please follow the instructions to ask questions via the provided dial-in details when we get there. To set the scene, WeSports Group is the leading Nordic specialist group in sports and leisure equipment.

We own leading specialist retailers and product brands with a focus on accelerating their growth and profitability. We have built leading market positions in the most attractive sport categories, selectively focusing on categories that are equipment-heavy and fragmented, enabling us to consolidate and build a profitable position.

Our specialist model is very different from the large sport chains, with more focus on expertise and assortment and a high share of own and controlled quality brands. We operate in a large Nordic sport and leisure consumer market worth over 80 billion Swedish crowns, and on top of that there is significant more market to capture in B2B and outside Nordics.

Growth in this market is supported by long-term health and wellness megatrends, while at the same time AI and also the continued shift to online are creating the most informed consumer ever, increasingly favoring our specialist position. The WeSports stores and brands are leading and well recognized by customers in their respective sport, including for example Cykelkraft, the largest online bike shop in Sweden, RunningXpert, the largest specialist running retailer in the Nordics and also actually one of the largest in Europe, as well as the iconic brand Tretorn, which is expanding from their strong base in rubber boots and tennis.

Looking on the right-hand side, the group reported net sales of 3,073 million Swedish crowns in 2025 with an adjusted EBITDA of 187 million, which we'll get back to. We have been growing almost 30% on average the last years, and we're proud to share that we have more than 130 championship medals won by employees in the group, which is a testament of the competitiveness that is a clear part of our culture.

Our financial targets are to reach net sales of 10 billion Swedish crowns by 2031, an adjusted EBITDA of 7% to 8% in the medium term, and also with a net debt of 1 to 2x in relation to the last 12 months EBITDA adjusted for leasing. We have a proven strategy and a model that essentially combines the four areas you can see here on the slide.

Through vertical integration and a growing share of own quality brands, we strengthen margins and secure a strong customer experience. We combine strong organic growth with a disciplined M&A strategy to quickly grow into the leading position in each sport.

We also run a decentralized model that preserves an owner mentality with a lean group structure that keeps costs low and accountability high. This is, by the way, also something that extends to the group level where management is heavily invested and the founders are still the largest owners of the company.

As the fourth and final point, by leveraging scale and systematically sharing best practices across the group, we unlock concrete synergies, not theoretical synergies. Then, let's have a look at the quarter and the general business update.

Looking at the Q4 numbers, it's fair to say that we ended a great year on a high note, managing to again prove our ability to win share with our specialist model. Net sales amounted to 901 million, which is an increase with 34% versus last year.

We drove 15% organic growth. We had a strong campaign period, and we delivered a good performance in B2B, where for instance our floorball and padel brand Oxdog and TVE with Tretorn stood out positively during the last part of the year.

The adjusted EBITDA increased significantly to 45 million for the quarter, corresponding to an adjusted EBITDA margin of 4.8%. Adjusted gross margin improved to 36.3% versus 33.4% last year.

In short, the margin increase was driven by margin discipline in the campaign period, Sportsmaster and TVE Brands Group becoming part of the group, being especially strong as companies during Q4, an increased share of own and controlled brands, and also as a whole, a leverage in our model where we have strong cost control and we manage to gain scale effects, which Tim will also show in more detail when we come to the financial part. Cash flow from operating activities amounted to 100 million in the period, a result of successful inventory management as such, and we ended the quarter with a net cash position.

Overall, these results showcase the continued strength of our model, gradually and steadily transforming a higher share of our sales to the bottom line. Operational highlights from Q4 include the campaign period, where we succeeded with a focused and very early preparation.

Together with a good performance from own brands, this also paid off in terms of growth and being able to keep a balanced discounting strategy. Aligned with our M&A model, we have also increased our ownership share in several group companies.

This is a clear example of our acquisition strategy where we gradually increase our ownership in profitable specialist companies with leading market positions, while at the same time ensuring that the entrepreneurs' commitments and the years and years of expertise that all of these entrepreneurs have in the sport remain central. In addition, if we take a step back, this also illustrates our approach to capital allocation, first investing in companies that we know well, and then progressively increasing our ownership as value creation is confirmed.

A clear Q4 highlight was also the announcement of our acquisition of Nordica Golf, a leading Nordic specialist in customized golf equipment. Golf in itself is an equipment-heavy sport and a perfect fit to our strategy with a very strong momentum in Sweden and the Nordics, and Nordica is a strong company with great leadership that will contribute positively to our EBITDA margins, simply put, a great platform for us to expand into a new sport.

As a final Q4 highlight, it is impossible not to mention our listing on Nasdaq First North Growth Market in December. While this in itself is of course a milestone for every company, we see this more as a starting point that enables us to accelerate our strategy further.

Taking a step back and looking at the full 2025, we can summarize another year of high growth and record profitability. Net sales amounted to 3,073 million, which is a growth of 31% versus last year, growth again over 30%, both for the quarter and for the full year.

We are especially proud that we continue to manage this growth while delivering an adjusted EBITDA 187 million, going above 6% adjusted EBITDA margin for the year, also acknowledging the fact that the margin has been higher in each quarter of 2025 than 2024. This clearly means to me also that we're progressing well towards the target we have of 7% to 8% adjusted EBITDA margin.

Together with strong organic growth, M&A is a key driver of our growth and also a core strength of our group. At the end of 2025, we had announced 40 acquisitions in total from the start, and a few examples from the year include, as you can see here to the right, Sportsmaster within fitness, Skicom within skiing, Benny Local, which is a provider of benefit bikes where there are strong synergies in cross-selling also with the rest of the cycle assortment in the group, and Nordica Golf, as we just talked about.

We are highly disciplined in our M&A and we've learned also over the years what actually matter. In summary, one can say that we target companies with the potential to achieve sustainable profitability and category leadership within the certain sport.

It is very important also that the team has a strong cultural alignment in terms of the ambition, in terms of growth and profitability, what they see in front of themselves, and we do not compromise with valuations. As for any acquisition-intensive company, both the cultural aspect and the valuation is key.

With around 7,000 companies within sport and leisure in the Nordics, there are hundreds of potential targets for us for the years to come. Before I hand over to Tim, who will go more into financial details, it is important to mention that we enter 2026 from a position of strength, both financially and operationally.

We have a robust balance sheet from the listing and a strong cash flow, which gives us financial flexibility. We're confident that the model that we're driving is the right way to build the strongest and ultimately most profitable position in each of the sports we're in.

For us, it's not really a question of reinventing something; it is a question of execution. To represent the current run rate from which we start 2026, we also share illustrative figures that reflect the full year effect of all acquisitions completed to date.

Had all subsidiaries been owned since the start of the year, net sales would have reached around 3,790 million, which is to be compared then to the 3,073 million that we report, with an adjusted EBITDA of around 220 million. We also see a strong tailwind from the long-term sports and health trend, no matter if we talk about the interest in running clubs, which I guess no one has really missed, or when it comes to the interest in skiing during this Olympic winter.

While I leave to others to speculate on interest rates and other consumer factors, it is a fact that we as WeSports have a trend of significant growth regardless of economic climate. We outgrew the market by far also in 2025 and plan to continue this habit going forward.

Then I hand over to you, Tim, for the financial update.

Thank you, Ted, and good morning everyone. I will start by walking you through our financial performance for the fourth quarter and the full year, followed by profitability, cash flow, and end up with our financial position.

Let me begin with net sales. Net sales in the fourth quarter reached 901 million, representing a growth of 34% compared to the same quarter last year.

Importantly, organic growth was also solid at 15%, demonstrating continued strength in the underlying business. Looking at the main drivers in the quarter, we can see that running continued perform very well with so sustained high demand followed by a successful assortment strategy and strong customer engagement.

Another driver was within business-to-business with great performance in Oxdog and strong contributions from our recent acquisitions, TVE and Sportsmaster. These businesses are developing according to plan and are contributing positively to both growth and margins with a high proportion of own and controlled brands.

We also continue to gain market share within bikes, reflecting our competitive positioning and our ability to capture demand in this market environment. Looking at the full year, net sales increased by 31%.

Organic growth amounted to 22%, representing a healthy balance between organic expansion and acquired growth, and confirming the strength and scalability of our platform. As Ted mentioned, if we add the impact of the recent acquisitions, we have had a turnover of almost 3.8 billion, which is our base when moving into '26.

Let's walk through the gross margin and the cost developments. Our adjusted gross margin amounted to 36.3% in the fourth quarter, which is 2.9% improvement from last year.

For the full year, adjusted gross margin remained stable with a solid margin development with two quarters in a row showing increased margins. This improvement was both driven by an increased share of own and controlled brands and a disciplined and balanced approach to discounting during the campaign period, supporting both sales performance and margin quality.

We also saw a positive contributions from acquisitions, particularly in the fourth quarter, where the margin profile of acquired businesses is structurally strong. On the cost side, we continue to see clear benefits from scale and strong cost control.

As sales increase, we are achieving good operational leverage across the organization. Personnel cost as a percentage of sales decreased by 0.1 percentage point in the quarter and by 0.9 percentage points for the full year, reflecting improved efficiency and scalability.

Other external expenses, including among others marketing, fulfillment and postage, decreased significantly as a percentage of sales, down 2.6 percentage points in the quarter and 1.3 percentage points for the full year. This demonstrates our ability to support growth while simultaneously improving cost efficiency.

Which brings us to the earnings. Adjusted EBITDA for the fourth quarter amounted to 45 million compared to 3 million in the same period last year.

This corresponds to an adjusted EBITDA margin of 4.8%, a significant improvement from 0.5% last year. Items affecting comparability amounted to 9.2 million in the quarter, of which 7.5 million were directly related to IPO costs.

These are non-recurring items related to our listing process and do not reflect underlying performance of the business. For the full year, adjusted EBITDA amounted to 187 million compared to the 109 million last year.

This corresponds to an adjusted EBITDA margin of 6.1%, which is up from 7.4%, representing a clear step-up in profitability. Let me turn to cash flow and working capital.

We saw a decrease in working capital during the quarter, mainly driven by successful inventory management during the campaign season, improvements in accounts receivable, and a seasonal effect from the acquired entities. Cash conversion in relation to EBITDA adjusted for leasing was strong during the year, with an adjusted cash conversion of above 79%, which we consider a high level given our strong growth.

One key driver to this is our asset-light business with just 0.7% maintenance capex in relation to sales for the full year, which corresponds to a decrease of 0.4% compared to last year. A strong cash generation remains a key part of our business model and provides important financial flexibility going forward.

Which brings us to our financial position. At year-end, our net debt to EBITDA adjusted for leasing stood at -0.9 times, meaning we have a net cash position.

This, together with the credit facilities, provides a flexibility when moving into 2026. Overall, this places us in a solid financial position with a combination of improved earnings, organic growth, enhanced cash generation, together with a low leverage and available liquidity, it provides a robust platform for continued investments.

Back to you, Ted.

Thanks a lot for your attention this morning. Before we head to the Q&A, I will leave you with my three main takeaways.

We have delivered new record numbers, more than 30% sales growth and an adjusted EBITDA margin over 6% for the year. We have continued our successful path of acquisitions with a very interesting list of potential targets going forward in the Nordics.

I'm confident that we have built the right foundation to execute towards our targets, fueled also by what is very clearly a resilient trend in sports and health. Overall, a record-breaking year.

Thanks to all coworkers in WeSports, shareholders, customers, and partners. Now, let's open up for questions.

Good morning, guys. I have three questions for you, but I'll take them one by one.

I was wondering if you could give some additional color on the gross margin development year-on-year, please. Could you try to build the bridge in terms of mix effect from M&A, private label, and perhaps better handling of campaigns, please?

Yes. Thank you, Benjamin.

As you say, it's been a mix. New companies that change the mix is one, that is a strong, important part, as well as the discipline in how we manage margins also during the campaign periods, and also an increased proportion of own and controlled brands.

We do not report individual companies separately in that regard, but it is a mix.

Right. There's no way for you to give us a rough indication of the significance of each part?

I would say it's a combination in that regard, no further data on exact mix.

All right. I noticed, well, that you've booked other income of close to 20 million here in Q4, and I was wondering, what is this related to, please?

The higher other income during this year is mainly driven by a repayment concerning one of the companies for historical cost. In other words, it's a compensation that was regulated in the original SPA that they would be responsible for, and it's met by a corresponding cost further down in the P&L.

All right. There's no EBITDA impact from this repayment?

Minor, but not any substantial effect.

Okay. Thank you.

Then I was wondering if you could say anything at all about current trading. On the one hand, I'm thinking you should have a pretty good view of Q1, and as well I guess in Q4 you state that your best categories are running and biking, perhaps two sports you don't do very much when it's snowy out.

Anything you can say about current trading is helpful.

I think the first thing I can say is that over a full year, we're well diversified when it comes to different sports and different seasonal patterns. If we look at the winter so far, I think it's been good for all types of sport trading that we have this type of winter and clear seasons.

It's been positive also for us, especially in our ski-focused companies and our winter-focused companies given the weather. Looking at March and the end of the quarter, that will be decisive for the quarterly outcome, especially in bikes and running, as you say.

All right. Perfect.

I think those were all of my questions for now. Thank you very much.

Thank you.

Yeah.

Good morning, Ted, Tim, and Niklas. A couple of questions from my side.

First, regarding the acquisition of TVE Brands, could you perhaps comment on what specifically is driving the strong sales we have seen in this quarter, or should we just view it as a part of consolidating the numbers into WeSports? Also regarding the acquisition multiple here, it appears at least from my point of view that the acquisition multiple has been higher than your target range of 5 to 7 times EBITDA.

Is there any context or detail you can provide regarding that?

I think if we start with the first question, I would say for TVE, the fourth quarter as a whole and December are generally good sales quarters for TVE, and we saw that clearly also this year. We don't report individual companies separately, but it's been a strong end of the year for TVE, definitely.

It's also strengthening the mix that we have between B2B and B2C, so that is good because it brings us even more stability going forward. Then in terms of what has been driving TVE, it's very clear that they are successful in the shift that they're making gradually from also extending from their traditional rubber boots and tennis products towards also other types of products.

They're very successful in that, and we're also assuming that that success will continue in the same way during this year and the coming years. It's a very exciting journey with TVE in that regard.

I could comment, Ted, on the second question from you there regarding the multiple, and it is within our previously communicated range between 5 to 7 times EBITDA, which is typical for us, and also we typically don't disclose the individual detailed terms per acquisition, but it is in line with our strategic focus on how we do acquisitions.

Okay. Perfect.

Thank you very much. I assume then that we should assume quite high or quite good profitability then from TVE in terms of margins then, looking at the multiple.

Just coming back then to what Benjamin also mentioned about the outlook, the start of 2026, it's been a very cold and snowy beginning to the year. I assume that we should not view this as a negative aspect for you guys regarding skiing and Nordic cross skiing, etc., or how should we expect this to affect your big category such as within bike and running, for example, heading into Q1, where you I think have year-over-year quite tough comparable figures at least, looking at Q1?

Yeah. No, it's a good question.

As we said before, what I would say there is I think it's good for all types of sport trading companies, including ours, that you have clear seasons like this. Of course, our ski-focused companies are benefiting from the weather, but when you have clear seasons, that is over the full year benefiting us as well.

March and the end of the quarter will of course be very important for running and bikes, as you mentioned. Overall, I would say also if you look at 2025, which has been a very strong year where we also I think shown clearly that we're coming closer in a good way towards the more long-term financial targets that we have, nothing has changed in our model, we count on 2026 continuing also in the same way with that type of strength.

Perfect. Thank you for clarifying that.

Just moving on to the acquisition then of Nordica Golf, how should we look at the seasonal patterns for this business? Additionally, you feel that the portfolio is now complete within the golf category, or are you looking for further acquisitions, or how fragmented is this category compared to biking and running, for example?

Maybe if I start with the seasonal patterns, Niklas, and then you can also elaborate on how we see golf going forward. If you look at the seasonal patterns, I would say as you would expect with golf, Q1 is not the largest quarter, then you have Q2 and Q3, which are the strongest ones, and then the campaign period during Q4 is also important, but in that order, I would say.

Q2 and Q3 the strongest ones, then Q4, and then Q1 is the weaker quarter.

I can continue there also, Ted. Perhaps worth mentioning is since we are building our sports business based on specialists, it's also good to take away, I would say, both for running and cycling and golf, which are typically not the Q4 or Q1 heavy types of sports, if you are among the best specialists, you do have quite good customer base who comes with repetitive business in terms of parts and accessories.

Since we're also online business, it's a lot about starting customer journeys. Q4 and Q1, I would say, also for these kind of non-winter sports are important and positive for us.

What was the second question? Please repeat that regarding Nordica.

Do you see potential to add more acquisitions within this category,

and

how fragmented is this market? Yeah.

Okay.

The golf market is a big, very big market. It is less fragmented than other sports that we are in, but given that, there are still a lot of opportunities also when you look at M&A within this sport.

There are opportunities also in golf, I would say, to further consolidate down the line. For now, our ambition is to really do a good job together with the Nordica Golf team to integrate them well into WeSports, and start to see synergies both the direct synergies and to build them as part of the platform now.

Thank you. Understood, Niklas.

Maybe last question, then. Primarily Swedish business, WeSports, but can you maybe give some colors on how the different regions developed in this quarter, or how you see the market in general is performing?

We saw sport index in Sweden was quite weak here in the fourth quarter, maybe some more colors on that, please?

Yes, absolutely. I think one important thing to take away here is also if you refer to sport index, that if you look at the segments that we are targeting, the specialist segment, it's something that we see growing quicker than the average market, and also the online segment, which we also saw I think in E-barometern for instance, that was growing significantly more than the overall market.

We have the benefit of being in those segments and focusing on those segments that are actually growing the fastest. Without going into too much detail on speculating on interest rate and the strength of the consumer in 2026, what we can see clearly is that there is a continued strength in the trend of interest in sports and health.

That is something that is very much apparent also when we talk with our companies and in the different categories. I would say from that perspective, I very much look forward to 2026 independent of where the consumer sentiment ends up.

Also adding to that, and I think that is clear also from the presentation we just gave, that independent of the economic state, WeSports has been able to deliver significantly above the market growth, and that's nothing that we aim to change. We want to continue that, of course.

Also to mention something about the regions that we pinpoint, we have roughly 55% sales in Sweden, followed by Norway, Denmark of around 11% of sales, and Finland around 12%, 13%. You can say that we have 90% of our sales within the Nordics, with the majority being in Sweden when looking at the full year.

Can you provide us some performance in the other countries beside Sweden?

Normally when we look at our business, we actually look at it more company by company. If you look at it from a profit development perspective, the most important thing is the own and control brands.

That is what we look most at, actually, rather than country by country. Of course, we see that it's interesting, and I think if you look at the overall market in the other countries, it's similar as to Sweden, that there is a clear trend that specialists are gaining share, driving also a different type of assortment, also the trends that we see in terms of social media, AI, and so on, that are making the consumers also in the full Nordics more knowledgeable before they make this type of purchase.

That is something that is benefiting us in the whole of the Nordics in the same way as in Sweden, I would say.

Perfect. Thank you very much, Ted.

That was all of my questions for now. Thank you very much.

Thank you.

Thanks.

Thank you, operator. Good morning, gentlemen.

A couple of follow-ups from me. Firstly, I'm trying to understand organic margin development, and you have the M&A specification in the report for the full year of 2025 in terms of M&A results contribution, but could you share any details on Q4 specifically, in terms of EBITDA contribution from M&A?

As we said before, it's been a balanced mix, and I think there's three things. One is the fact that we're adding companies that are strong in Q4, and that is an important effect.

The second one is that the way that we've been managing the margins during Q4 this year has been much more balanced than we've been doing before, and that's been positive also for the gross margin. The third one is own and control brands, where we're gradually increasing our share, which we aim to do going forward as well.

Then also I think, as you showed, Tim, if you look on the margin as a whole when it comes down to the adjusted EBITDA, what we're managing to do gradually is that the share of personnel costs and other operational costs is going down gradually in relation to sales. Those four factors together is something that is bringing the margin that we got in Q4.

Yeah. Okay.

Second question. I noticed that minority share of net profit seems very large.

Are there any specific dynamics here in Q4, or would you say that these levels are fair going forward?

If you look at the minority share of the profit, it's of course based on the ownership during the full year or the full quarter, which has increased during the latter part of the year. If we look at it now, we own just about 75% of EBITDA when we apply the ownership on the last 12 months.

It is, and it shall be an increasing level going forward, and what we can see in the P&L now reflects how the ownership has been during the year.

Okay.

It looks the level that you see in Q4 is lower than what it is actually going forward as well.

Yeah. Yeah.

Makes sense. Final question.

You released working capital here despite the very strong organic growth. Could you remind us of the seasonality during a year for you in terms of working capital?

The working capital will fluctuate during the year, and since we have a group that has somewhat seasonal effects when it comes to purchases and so forth, we will have increased working capital during the so to say classic purchase seasons before the actual sales season starts, meaning that usually we have often a higher working capital buildup during, for instance, Q1 and Q3, and we have a better or a declining working capital during the other quarters. We are impacted by the seasonal effects when it comes to working capital.

One could also add there, if you look at the cash conversion as a share of adjusted EBITDA adjusted for leasing, we aim to be in the range between 60% to 80%, of course with the ambition to be on the upper range as we managed specifically now in 2025. As you say, Tim, we're also realistic that it will fluctuate between quarters and years.

That's also what we need to do to build the growth that we want to do going forward. The cash flow that we see now is very strong, and also a good base for the continued M&A, together with the balance sheet that we have.

That's something that is a very good foundation for how we start 2026.

Of course. I'm always also looking at the other KPIs, such as inventory turnover and return on capital employed or EBITDA divided by core working capital.

We can see that all those points in the right direction, and indicates that we are actually getting better and better to work with our resources, which of course will also refer and spill over to the cash generation possibilities going forward, and meaning that we will end up in the target that Ted set.

Okay. I have one more question.

If you could give us any details on average order value development versus orders in Q4. What if we break down the 15% organic growth, what are the drivers here in terms of price and volume?

Thanks.

I think that's a good question. I don't think we have the specific breakdown of that, but I don't think it's a clear price driver that is driving this development, but we can look further at that as well.

Or it's clear that this is not only driven by price in that regard.

Okay. Sounds good.

Thank you. That's all for me.

Thank you.

Yes. Good morning, Ted, Tim, and Niklas.

Just a question from me as well. What do you think, what's your guestimate or what's your forecast in terms of cash out commitment for 2026 related to earn-out payments and minority options?

Looking at minority options per year-end, it was 128 million, and we had then continued earn-outs of 82.6 million. Of these, we had short-term earn-outs payable during this year of around 27.2 millions.

That's the base that we see when we look at the minority options and continued earn-outs. We avoid to speculate on the nominal value of long-term options and earn-outs, we tend to focus on the short term, which we see in those figures.

So 27 million is sort of what you should plan as cash out for '26 as you see it right now?

That's correct.

Yep. Any sort of, would you give any indication for '27 as well?

Not at this moment. I don't want to speculate on that.

Okay. Guys.

Thank you.

Thanks.

I think thank you for those questions. To summarize, I think we've seen a quarter that is again confirming essentially that our business model is working exactly in the way that we want it to.

We look forward to 2026 with a strong foundation, both financially and operationally. We see again that we have a strong balance sheet, we have strong cash flows, we also have essentially a sports and health trend that is benefiting us, especially as specialists, and we see that the model that we drive with the combination of business development and M&A is actually very successful.

I think that's the closing comments I would give for this, looking forward to the rest of '26.