Annual report
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Annual Report 2025
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MESSAGE FROM THE CEO Keystone moment: Ready for scale We are proud of the progress Klappir has made to date and of the strong foundation established for long-term growth. With a high share of recurring revenue, a scalable SaaS platform, and a rapidly expanding global ecosystem, Klappir combines current profitability with a clear trajectory for future growth. The 2025 results demonstrate, above all, the resilience of Klappir’s data infrastructure and the depth of the business relationships built around data quality and integrity. In a year marked by geopolitical disruption reshaping the global economy, constraining access to energy, materials, and capital, sustainability evolved from a largely cultural or symbolic concept into a discipline grounded in measurable risk, resource constraints, and economic performance. Data-driven decision-making took precedence as narrative-driven approaches receded. This shift aligns directly with Klappir’s long-standing approach to product and business development. Klappir has consistently championed data-driven resource management as the foundation for operational efficiency, with sustainability outcomes and stakeholder communication emerging as a natural consequence. Klappir continued to grow year over year by converting rising demand into predictable, recurring revenue while maintaining healthy profitability. This performance was achieved even as the company deliberately refocused significant resources inward to expand capacity, materials, and automation required to support scalable growth in 2026. In parallel, Klappir fully realized its partner network, with partner-led revenue increasing by approximately sevenfold year over year. This partner network is instrumental in enabling scale, reducing competitive friction with consultants, and positioning Klappir as foundational infrastructure that supports trustworthy and efficient economic activity at low corporate and social cost. While annual recurring revenue grew modestly year over year, support service revenue declined as the company intentionally prioritized long-term scalability and deeper partner relationships over short-term revenue optimization. With recurring revenue representing 98% of total revenue, a product-led-growth-ready data infrastructure platform, and a rapidly expanding global ecosystem, Klappir is building a critical capability for the future economy. Net revenue retention improved toward the end of the year, reaching 103.5% in Q4 2025, reflecting early returns on research and development investments made throughout the year and providing a strong foundation for accelerated growth in 2026. Klappir’s distribution strategy continues to mature, progressing from data-driven due diligence and stakeholder assessment tools early in the year, to the launch of a freemium offering with live resource data flows, and onward toward data-enabled sustainable finance use cases. The company intends to maintain a disciplined conversion rate of approximately 5-8% while increasing virality and sign-up velocity. Beyond distribution, Klappir is increasingly focused on unlocking additional value from the high-fidelity, structured resource data accumulated within its platform. Artificial intelligence will play a central role in this next phase, both through AI-driven agents that enhance automation, insight generation, and operational efficiency within the platform, and by positioning Klappir’s data infrastructure as a reliable foundation for external, large-scale AI systems addressing resource efficiency. With a proven data infrastructure, clear use cases, a scalable partner model, and a growing global user base, Klappir is now entering the second phase of its development, extending its role as foundational infrastructure not only for organizations managing their resources today, but also for future solutions that will depend on reliable, high-integrity resource data. Þorsteinn Svanur Jónsson Klappir, CEO Klappir Green Solutions hf. Annual Report 2025
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SUMMARY Klappir - built for a new economic landscape Mark Carney’s Davos 2026 address framed a world moving from globalization toward fragmentation, where geopolitical risk, climate change, and resource constraints are now structural forces. His core message was that resilience, sustainability, and trusted data are becoming central to competitiveness and capital allocation. In this new global environment, organizations and economies that can measure, manage, and act on sustainability and resource risks will be better positioned to attract capital, navigate uncertainty, and sustain long-term growth. Klappir is built for this reality, providing the data foundation organizations need to navigate uncertainty, meet regulatory demands, and turn resource data into a lasting strategic advantage in an increasingly complex global economy. Strategy The 2019–2025 strategy was established to transition Klappir from a hybrid operating model, combining platform development, infrastructure build-out, and consultancy services into a scalable, technology-centric company. Over this period, Klappir has successfully executed this strategy, embedding a growth model that combines Product-Led Growth (PLG) with Partner-Led (PL) distribution and services as core pillars of the business. This model enables rapid international scaling from 2026 onward while maintaining platform consistency, operational efficiency, and standardized delivery across markets. During the scaling phase, the Company plans to maintain a freemium share of approximately 75–85% of ecosystem users, while targeting EBIT margins above 20%, reflecting strong operating leverage in the SaaS platform model. Highlights 2025 Klappir SaaS business model is characterized by low marginal costs, making increased scale highly profitable. As platform adoption expands, operating leverage strengthens, supporting sustained margin expansion and improved profitability, subject to continued customer growth. In 2025, the Klappir Ecosystem comprised 4,547 business entities, representing an increase of 18.4% compared with 3,840 entities in 2024. The global partner network included 21 partners operating in 21 countries. Total revenue amounted to EUR 2.54 million (2024: EUR 2.45 million), representing 3.9% year-on-year growth. Annual Recurring Revenue (ARR) reached EUR 2.51 million (2024: EUR 2.37 million), corresponding to 5.9% growth, and represented approximately 98.6% of total revenue. Operating profit (EBIT) amounted to EUR 0.57 million, corresponding to an EBIT margin of 22.6% (2024: 20.6%). Goal of 2026 Klappir strategy is to scale through increased user distribution in the Ecosystem (flywheel model) and partner-led distribution generating the bulk of recurring revenue growth. Klappir will press aggressively forward with optimizing product-led adoption, plug-and-play data integration and AI driven data structuring and enhancements. These strategic priorities play an important role in rapid scaling without rising costs The growth strategy targets over 25% annual Ecosystem expansion, with freemium users consistently representing 75– 85% of the total base, ensuring low-friction scale. This model supports ARR growth of 15–20%, and sustained EBIT margins above 20%. Klappir Green Solutions hf. Annual Report 2025
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BUSINESS HIGHLIGHTS Key performance indicators 2025 2024 2.543.382 2.446.983 1.100.903 993.763 575.960 505.152 264.629 323.574 8,1% 10,9% 3,7% 4,7% 2025 2024EUR Operating revenue EBITDA EBIT Profit Return on equity Return on assets EUR Financial ratios Current ratio Equity ratio Intrinsic value of equity 2,2 45,9% 6,6 3,6 43,2% 3,1 Various measures as a percentage of revenue Other operating expenses EBITDA margin EBIT margin Profit margin 7.163.342 3.285.299 3.878.043 6.878.222 2.973.328 3.904.894 Total assets Equity Total liabilities 19,9% 43,3% 22,6% 10,4% 33,0% 40,6% 20,6% 13,2% Klappir Green Solutions hf. Annual Report 2025
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BUSINESS INFORMATION Company profile Financial event calendar Company name Social security number Ticker /ISIN: ISIN Code Number of shares Headquarters and domicile Homepage Email address Financial Y ear P rimary listing Currency Accounting Standards Auditor Certified advisor Klappir Green Solutions hf. 630914-1080 KL APP IS0000029171 5 063 135 Hlíðasmári 3, 201 Kópa v ogur , Iceland www.klappir . com in v estors@klappir . com 1 January – 31 December Nasdaq First North, Iceland and S w eden EUR (Accounting ) & EUR (Nominal v alue of shares ) IFRS (Financial ) & V SME (Sustainability ) KPMG - DATE TITLE CATEGORY 05/11/2025 22/12/2025 05/02/2026 24/03/2026 25/08/2026 09/02/2027 23/03/2027 Change of Article of Association Change of Article of Association Full-year 2025 results 2026 Annual General Meeting 1H 2026 results Full-year 2026 results 2027 Annual General Meeting Shareholder meetings Shareholder meetings Annual Financial Information Shareholders meetings Semi-annual Financial Information Annual Financial Information Shareholders meetings Klappir Green Solutions hf. Annual Report 2025
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Content Annual Report 1. Introducing Klappir Message from the CEO Summary Business highlights Business information Content 2. Strategic Pillars Klappir Unique Position Klappir´s world of data Under-supplied markets Data recilience Klappir Green Solutions hf. Annual Report 2025 3. Platform and product overview ii Klappir technical stack iii Products iv User-led distribution v PLG Progression vi Klappir’s network effect Partner-led sales and services 7 Data - the resource of the future 8 9 Governance 10 Klappir capital structure 11 Organization Board of Directors Our leaders Risk management Stakeholder engagement Exhibits Exhibit 1: Klappir Financial Statement 2025 Exhibit 2: Klappir Sustainability Statement 2025 See Exhibits here :https:/ /www.klappir.com/investors 12 13 14 15 16 17 18 20 21 22 23 24 25 26 28
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Strategic Pillars Klappir’s unique position Klappir’s world of data Under-supplied market Data resilience
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COMPANY OVERVIEW Klappir’s unique position A canonical data platform for sustainability and resource management Klappir develops and distribute a software platform that provides a shared, canonical data framework for resource flow data collection, enhancement and distribution. On the platform, Klappir offers products for resource management, sustainability, regulatory reporting, performance optimization and data services to external data-bases. Klappir operates as a domain-specific data infrastructure provider, delivering a scalable Software-as-a-Service (SaaS) products built on an canonical data model used as an industry standard for structuring, governing, and sharing resource data. Klappir growth model combines Ecosystem distribution and model with Product-Led Growth (PLG) and Partner-Led (PL) distribution and service models, enabling low-friction customer acquisition, rapid international expansion, and strong operating leverage. Klappir’s market consists of organizations working on resource optimization, data for legal and voluntary disclosures, data dissemination to stakeholders or simply working towards increasing quantity and quality of their resource and procurement data. Therefor Klappir’s software is designed for no specific location, size and or type of organizations. Klappir Purpose Is to enable organizations to strengthen operational resilience and long-term competitiveness through high-quality and high-fidelity resource data. Key Strategic Milestones Klappir core values Innovative -> how the platform evolves: We deliver cutting-edge resource management and sustainability solutions that evolve in step with emerging regulations, technological developments and political environment. Professional -> how the the company governs data and reporting: Professionalism defines every aspect of our work, from software development and data integrity to customer partnerships and regulatory alignment. Caring -> how impact is measured and delivered: We act with care toward our customers, colleagues, stakeholders, the environment, and society as a whole. YEAR 2014 2015 2017 2019 2026 MILESTONES Klappir founded, initially digitizing maritime compliance logbooks. Launch of the first Platform interface on Klappir underlying data infrastructure, establishing the foundation for standardized resource data management. Listed on Nasdaq First North, Iceland Strategic shift to a scalable Platform and Ecosystem model, formalizing PLG and Partner-Led (PL) distribution and services as core growth engines. Transition to scalable global deployment, with a focus on ecosystem expansion, automation, and AI- driven innovation. Klappir Green Solutions hf. Annual Report 2025
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COMPANY OVERVIEW Klappir’s world of data From fragmented resource data to a trusted system of record Resource flow data is used by organizations to measure, manage, and disclose their resource use and impact across assets, operations, and value chains. The drivers behind the demand is the cost of resources and information demand of the market and investors. Products and services act as upstream drivers of operational efficiency and risk. Integrating high fidelity data from multiple data sources into standardized frameworks unlocks new capabilities. Real-time data on energy, water and waste (to name examples) enables its user to save money and improve operational health, where disclosures, performance reporting and audits become an afterthought . Optimizing resource use will only grow in importance in our resource constrained economies and regulations will only expand. Resource management focuses on operational efficiency and resilience, understanding where resources are consumed, where losses occur, and how exposure to price volatility, supply disruption, and regulatory change affects cost structures and competitiveness. Sustainability management and reporting translates this operational reality into standardized, comparable information required by regulators, investors, customers, and other stakeholders. Effective resource and sustainability management requires continuous visibility, consistency over time, and comparability across assets, geographies, and value chains. Without a unified data foundation, organizations struggle to translate resource constraints into actionable decisions, leaving them exposed to cost volatility, regulatory risk, and competitive disadvantage. As a result, organizations increasingly require a single, governed source of truth that supports internal decision-making, external accountability, and consistent benchmarking across operations and value chains. Klappir addresses this need by providing the digital data infrastructure that serves all these operational and reporting needs with a single, governing resource use, emissions, and waste across assets, operations, and value chains, and enabling organizations to build a longitudinal, standardized, and auditable foundation for both decision-making and disclosures. As resource constraints intensify and reporting requirements expand, the ability to manage resources systematically is becoming a defining strategic capability for organizations across industries. Systematic resource management requires reliable, decision-grade data that is consistent across time and space. Siloed, manual processes within organizations are not sustainable, as they introduce execution risk, limit comparability, and lack the speed required to respond to operational, market, and regulatory change. A stable, governed data foundation is therefore essential to translate resource constraints into operational and financial decisions. Klappir is building the inter-organizational data infrastructure that standardizes how resource data is defined, exchanged, and trusted across organizations. Klappir functions as a mission-critical data backbone that underpins resilient operations, informed capital allocation, and sustainable long- term value creation. By embedding resource data into core operational processes, Klappir enables organizations to integrate sustainability into planning, investment decisions, and performance management. This infrastructure-based approach creates durability, as the value of longitudinal, auditable data compounds as regulatory requirements evolve and the costs rise. “ The system is a godsend not only for us who do the environmental reporting but also for our machinists and engineers: who now have a comprehensive overview of the energy intensity of every single machine”. Málfríður Guðný Kolbeinsdóttir, Sustainability and Improvement Leader at Ölgerðin Klappir Green Solutions hf. Annual Report 2025
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MARKET Under-supplied market Infrastructure first for structured resource data In several core enterprise domains, data governance and control are already well established or rapidly maturing. Financial data is governed through standardized accounting frameworks and auditable systems of record, supported by platforms such as Stripe. Customer and sales data are structured around CRM platforms with standardized data models, such as HubSpot. Workforce data is governed through HRIS platforms with standardized employee records, org structures, and compensation models, supported by platforms such as Workday. Even contract and obligation data is increasingly being standardized through CLM platforms such as Ironclad. Resource management stands in stark contrast. Despite its growing strategic importance, resource data remains fragmented, inconsistently defined, and often derived from financial proxies rather than direct activity-based measurements. Most organizations therefor struggle with inconsistent, non-comparable and low-fidelity datasets that limit optimization, undermine decision- making, and increase regulatory and reputational risk. Regulation, capital markets, and AI-driven analysis now require resource data to meet the same standards of consistency, auditability, and longitudinal integrity as financial data. Resource data is inherently fragmented across assets, operations, and value chains. It is typically captured in financial systems, spreadsheets, industrial computers and manual processes resulting in low-fidelity data that was never designed to reflect actual consumption or disposal. Energy use, emissions, waste, materials, and transport data exists in great quality but has been out of reach with next to no standardization or traceability. As resource and sustainability performance is increasingly assessed through automated analytics, AI-driven screening, and cross-company benchmarking, weaknesses in data quality are becoming more visible, more consequential, and harder to correct. As a result, high-quality, longitudinal, activity-based resource data is no longer a reporting artifact but a foundational requirement for any ambitions towards reducing costs, speeding up reporting and reducing impacts. While most enterprise domains have matured into governed data infrastructures with established systems of record, resource management remains one of the last major domains without a dedicated, infrastructure- grade data layer, creating both economic risk and a significant market opportunity. Despite rapidly growing demand, the market for resource data infrastructure remains structurally undersupplied. Only a limited number of companies operate at infrastructure-grade level, with the capability to standardize, govern, and scale resource data consistently across organizations, assets, and value chains. The majority of market participants remain focused on reporting-oriented software, consulting-led solutions, or shallow tools extended into sustainability use cases. These approaches prioritize disclosure over data governance and rely on fragmented, manual architectures that limit scalability, comparability, and long-term value. Reliance on fragmented solutions exposes organizations to regulatory, capital-market, and analytical risk, as only infrastructure-grade platforms support auditable, AI-ready resource data at scale. Klappir Green Solutions hf. Annual Report 2025
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MARKET Data resilience - a 21st century requirement Regulatory, reputational, and efficiency opportunity from high quality data foundations Even where intent is sound, limited or poorly structured data can erode trust with investors, customers, partners, and employees. These risks are now being amplified by the growing use of AI-driven screening and benchmarking tools. Organizations with weak data foundations are more likely to be flagged for anomalies, inconsistencies, or unexplained variance, often without the opportunity to provide contextual explanation. As a result, data quality failures can escalate quickly from internal reporting challenges to external scrutiny, regulatory attention, or reputational harm. Addressing these risks requires more than improved disclosure; it requires a structural shift in how sustainability and resource data is collected, governed, and used. Klappir addresses this challenge by providing a controlled, standardized data foundation that ensures resource data is consistent, traceable, and aligned with operational reality. “ No data is better that bad data.” Barr Moses, co-founder and CEO, Monte Carlo Poor data quality introduces three interrelated risks to organizations: Unreliable compliance processes, regulatory risk exposure, and brand and reputational damage. Resource data that is inoperable, fragmented or inconsistently recorded can not support reliable simulation, forecasting, or optimization. Incorrect assessments and false security arising from poor data and flawed scenario analysis. Decisions based on these inputs, whether related to emissions-reduction pathways, energy-efficiency investments, or supply-chain interventions, risk being misinformed or materially incorrect undermine efficient allocation of resources and capital. Beyond decision-making risk, poor-quality data creates material brand and reputational risk due to unsupported claims or lack thereof entirely. Inconsistencies or gaps in reported data are increasingly interpreted as indicators of weak control, insufficient governance, or, in more severe cases, green-washing. In an increasingly data-driven economic landscape, the quality of underlying data has become a critical determinant of credibility, performance, and risk. Investors, regulators, partners, and the public no longer assess sustainability commitments based on narrative disclosures alone, but on the consistency, traceability, and analytical integrity of the data that supports them. As digital platforms and artificial intelligence are increasingly used to evaluate sustainability performance at scale, weaknesses in data quality are becoming more visible, more consequential, and increasingly difficult to conceal. Advanced analytics and AI-based assessment tools ingest large volumes of structured and unstructured data from corporate disclosures, regulatory filings, third-party sources, and public information. These systems are designed to detect inconsistencies, gaps, and anomalies across datasets, as well as misalignment with regulatory frameworks such as CSRD (Corporate Sustainability Reporting Directive), ESRS (European Sustainability Reporting Standards), SFDR (Sustainable Finance Disclosure Regulation), and the EU Taxonomy). Klappir Green Solutions hf. Annual Report 2025 11
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Platform and product overview Klappir technical stack Products User-led distribution PLG Progression Klappir’s network effect Partner-led sales and services Data - the resource of the furture
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PLATFORM AND PRODUCTS OVERVIEW Klappir technical stack Resource Flows - Data Infrastructure Network Infrastructure Integration's • Storage • Security • Services Canonical Data Model Classification • Data Enrichment • Objects • Coefficients Platform Interface Data sharing • Access control • Models • Data control Products Data automation • Sustainability • Resource Management • Strategy Klappir Green Solutions hf. Annual Report 2025 The Products are mounted on the Platform. This is where preset value is created from the data. Resource and sustainability management takes place here. The Platform is the software where the user interacts with the data, uses the products and communicates with other organizations. Data mapping, clean-up and structuring takes place here The Canonical model sits at the center, enforcing the unified structure of all data ingested, stored and managed in the Platform.
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PLATFORM AND PRODUCTS OVERVIEW Klappir Platform Klappir Green Solutions hf. Annual Report 2025 Products Sustainability Our flagship product for resource management and sustainability Strategy Workflows, materiality, policy making, action planning and overall qualitative data management system Academy Courses, step-by-step guides and other guided support for different outcomes possible with the Platform PortMaster Automated data flow on incoming port traffic and waste management in line with regulatory standards Database integration BC and database integration support and maintenance
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Partner-led sales and services Partner-led sales and services PRODUCT DISTRIBUTION User-led distribution Distribution is driven by the need of receiving and sharing high quality data. The Ecosystem consists of the users of the Klappir Platform, including customers, partners, and solution providers, who build, operate, and deliver value on top of the shared data infrastructure. At its core, the Klappir Ecosystem is designed to replace fragmented reporting and siloed work processes with a unified Klappir data infrastructure. Rather than requiring each organization to collect, validate, and interpret resource data in silos, Klappir provides the Ecosystem with a canonical data model and verifiable data exchange optimized for multi-use purposes. The Klappir data infrastructure ensures that high-quality data flows seamlessly between Ecosystem participants, reducing duplication, enhancing comparability, and enabling deeper insight into operational performance, resource use and sustainability outcomes. Companies can integrate own databases into the Klappir infrastructure and share real-time data with their clients. A customer can also send out requests for data, either through automated data-streams or data forms. All data gets cleaned, enriched and standardized in-transit to the recipient, converging it with all other data flows. Any data sharing between organizations requires a Platform account on all sides Klappir Green Solutions hf. Annual Report 2025 The Ecosystem is a foundational capability of Klappir, enabling real-time data exchange across businesses, municipalities, suppliers, and value-chain partners. It transforms isolated data efforts into connected, intelligent, and scalable operational and sustainability management. Engaging with the Klappir Ecosystem delivers a range of strategic and operational benefits, including: High-quality, decision-grade data: Cost-efficient sharing and receiving of high-quality data through a fully comparable data structures. Stronger and easier compliance: Accelerated regulatory readiness, improved stakeholder communication and heavily reduced risk. Stronger market communication: Enhanced brand credibility, ecosystem- driven growth opportunities, improved resilience, and long-term value creation across customers and suppliers. Reduced risk: More detailed and standardized the data is the better business continuity a company has.
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F eatures Data Management Basic resource data (Scope 1 & 2 activities) Advanced resource data (Scope 3 activities) Other data* (ESG data) Core ore m ipsu m Impact ore m ipsu m Growth ore m ipsu m PRODUCT DISTRIBUTION PLG Progression Product-led-Growth adoption in Klappir focuses on reducing friction moving Klappir customers from freemium to champions Au tomation and Integration Data fil e drop Manua l imports Public Data Connections Auto mation Hub AI Infusion (coming soon) ore m ipsu m ore m ipsu m ore m ipsu m Engage V alue Chain Impact P ro fil e Stak eholder mappin g Supp lier Scoping Distribute Core Plans Due Dilig ence Surve y's Per f ormance & Insights Dash boards R esource ana lytics Data Insi ghts K e y P er f ormance Indicators Data Coverag e (coming soon) R eport & Comp l y Audit trail V oluntar y F rame w ork s** R eg ulator y F rame w ork s Platf orm Management Unlimited Users Assets & sites Enterprise structure L earn & Support Ask ur - AI assistant K no wledg ebase 2 per y ear 4 per y earStrategic Check -ins ore m ipsu m ore m ipsu m ore m ipsu m ore m ipsu m Driving Expansion and Retention Klappir PLG model is designed to maximize data ingestion and minimize onboarding friction. The user journey starts at a free Core subscription in our Sustainability product. The subscription unlocks data types, such as fuel, electricity and heating, basic reporting templates and risk-based value chain screening. Public outbound integration comes with no cost. A company can utilize Klappir’s API’s for sharing data with customers for free. Automated inbound data flows are unlocked in paid products, so are most analytics, reports, enterprise structures, and due diligence communications. Private API integration's are enabled at demand and advanced AI data enrichment made available. CORE Free Basic Data · Basic reporting GROWTH Standard All data · Automated inbound flows · Advanced reporting and analytics IMPACT Enterprise All data · Enterprise structures · Full reporting and analytics · Due Diligence (100) ore m ipsu m (unlimited) ore m ipsu m ore m ipsu m ore m ipsu m ore m ipsu m ore m ipsu m ore m ipsu m ore m ipsu m ore m ipsu m ore m ipsu m ore m ipsu m ore m ipsu m Klappir Green Solutions hf. Annual Report 2025
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PRODUCT DISTRIBUTION Klappir’s network effect Validated infrastructure with expanding network effects Klappir is a category leader in role and architecture, operating as domain- specific data infrastructure and a system of record for resource data and sustainability. Klappir has validated its business model by initially establishing a full-scale national data infrastructure in Iceland, where the platform is used across both public and private sectors. Building on this proven foundation, Klappir entered the Danish market in 2020, where the platform has been well received across both public and private sectors, validating the scalability of the business model beyond Iceland. Now Klappir is extending its infrastructure to new international markets, including Sweden, the United Kingdom, Germany, Brazil, and other regions, and has initiated customer and partner engagements in these markets. As organizations expand across countries and continents, they have the opportunity to unlock significant efficiency, insight, and competitive advantage by moving beyond fragmented consultancy models and local reporting practices. Product expansion to new market first happens through the user-led distribution of our free-of-charge subscription, prompted by a customer needs to either share data or request it. Klappir enables this opportunity by providing a single, standardized data infrastructure that operates seamlessly across geographies, partners, and regulatory regimes. Data is automatically enriched with conversions, derivative calculations and translations so the physical realities the data represents are universally agreed on. This allows organizations to process, manage and disclose resource-use and sustainability data consistently across all operations, regardless of location or industry. Expanding 2024 Brazil Infrastructure through partnerships Sweden 2020 Denmar k Building the infrastructure 2015 Iceland Germany UK Norway/ Finland Klappir Green Solutions hf. Annual Report 2025
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PRODUCT DISTRIBUTION Partner-led sales and services A governed extension of Klappir Klappir’s partner network is an important component to the company’s growth strategy, as it is designed to support hybrid sales methods and maximize value output of the use of the infrastructure Through the Platform the customers access to a growing ecosystem of certified sales and service partners that provide their services within the Ecosystem. This model enables Klappir to scale globally with lower distribution and delivery costs, while ensuring customers maximize the value produced from the Platform Klappir understands that with multitude of value options emanating from the infrastructure data, customers will need a guiding hand in order to facilitate the process. Partners deliver implementation, advisory, and sector-specific services locally, while data, methodologies, and outputs remain standardized and governed at the platform level. Through this approach, customers benefit from a globally consistent solution combined with local, value-driven service. Operating within Klappir standardized data structures and governance framework, the Partner is able to provide consistent, comparable, and audit- ready services. Partners can develop both software solutions and service offerings directly on top of the Klappir Platform, supporting operational decision- making and regulatory reporting without compromising data integrity. By consolidating certified partner solutions and products within a single, governed partner layer, customers reduce the complexity and cost associated with fragmented point solutions and manual integrations. They can selectively activate trusted partner offerings while maintaining one controlled system of record for their data. Together, the Klappir Platform and its certified Partner combine robust data infrastructure with deep domain expertise and partner innovation. This enables organizations of all sizes to navigate evolving regulations, improve performance, and create enterprise value while stacking up internal competence and business continuity. Among our partners globally: Klappir Green Solutions hf. Annual Report 2025
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MARKET Klappir’s territory is expanding Our collaborative efforts through the Partner Network are reaching new horizons While we remain committed to our successful direct sales approach in the Nordic market, we are also actively working to broaden the scope and reach of our Partner Network. Initially focused on the Nordic market, we are now extending our collaborative efforts to new markets. Our Partner Network is a thriving community that currently includes 39 esteemed partners spanning 9 countries. Klappir Green Solutions hf. Annual Report 2025 19
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PRODUCT DEVELOPMENT - LOOKING LONG-TERM Data - Resource of the future The data wealth behind Klappir long-term advantage At the heart of Klappir lies a proprietary and continuously expanding canonical data-model comprising millions of product- and service-level, activity-based data points, each linked to specific products, services, assets models and company register. Over the years data has, and will continue to be collected in vast quantities, enriched, categorized and made inter-operational. Much like oil refineries process crude oil to a consumer grade level, Klappir makes data a true commodity for multiple use cases. This infrastructure and database represent one of Klappir’s most critical strategic assets and underpin the value delivered to the entire ecosystem. All resource data entering the Klappir Platform, whether from customers, suppliers, or partners is automatically enriched with classifications, conversion factors, asset twins and company profiles. The customer uses the Platform to modify enrichment, build data models and value chain structures. The infrastructure stores mappings and models to train machine learning algorithms and AI model that serve the Ecosystem as a whole. This enrichment model creates a compounding effect: each new dataset strengthens the shared data foundation, improving coverage, accuracy, and benchmarking across the ecosystem. As a result, every participant benefits from working with richer, more reliable data than could be generated independently. Over time, Klappir database has evolved into a shared intelligence layer, reinforcing network effects, increasing switching costs, and establishing a durable long-term competitive advantage. The result is a dataset that is not only large in volume, but also high in consistency, comparability, and auditability across organizations, economies, and industries. A key differentiation is that Klappir data is longitudinal by design. Transactions are recorded consistently over time, across assets, organizations, and value chains, following accounting-grade principles. This enables the dataset to capture how products, suppliers, and resource flows evolve over years. This combination of scale, standardized structure, and time depth makes the database uniquely valuable for advanced analytics and artificial intelligence. Training reliable, auditable, and scalable AI requires more than just the model itself. It requires first of foremost data - high-quality, standardized data: consistent, validated, and comparable data across the board, assets, and value chains, governed by a canonical resource data model and accounting- grade controls. Over time, this foundation positions Klappir to evolve from a system of record for resource data into a system of intelligence, where high-margin predictive, benchmarking, and optimization services reinforce long-term scalability, defensibility, and value creation. “ This kind of data is hard to find because it’s expensive to build, difficult to maintain, and requires discipline over long periods of time. But when it exists, it changes what AI can do.” F orbes, F eb. 2026 Klappir Green Solutions hf. Annual Report 2025
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Governance Klappir capital structure Organization Board of Directors Our leaders Risk management Stakeholder engagement Klappir’s territory is expanding
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GOVERNANCE Klappir capital structure Klappir operates in full compliance with all applicable rules and regulations, including Icelandic legislation (Law no. 2/1995 on Corporations), its Articles of Association, and the Board’s Rules of Procedure. The Company’s share structure is built as a hybrid A-share / B-share model, designed to balance long-term strategic stability with open market liquidity. A-shares are held by long-horizon anchor shareholders, including the founders who are committed to safeguarding Klappir mission, technological integrity, and strategic direction. These shares are not listed, ensuring continuity, stability, and the ability to pursue long-term innovation and infrastructure development without exposure to short-term market fluctuations. B-shares are the listed share class and are fully tradable, offering investors maximum flexibility to buy and sell freely on the market. This structure enables financial investors to participate in Klappir growth, with clear liquidity and transparent pricing, while preserving the Company’s long-term strategic resilience. Klappir dual-share model therefore serves two objectives: Strategic continuity for long-term value creation Unlisted A-shares anchor control with mission-aligned shareholders, ensuring the Company retains the strategic flexibility needed to pursue sustained innovation, scale responsibly, and develop digital infrastructure with long- term societal impact. Attractive accessibility for market investors Listed B-shares allow institutional and private investors to participate meaningfully in Klappir growth, aligning with competitive medium-term financial performance expectations while ensuring the Company remains firmly aligned with its mission, vision, and core values. This balanced governance structure supports both market openness and mission protection, positioning Klappir to deliver strong, sustainable value for all shareholders. Klappir Green Solutions hf. Annual Report 2025
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GOVERNANCE Organization Board CEO Compliance officer A scalable organization built for partner-led expansion, rapid onboarding, and unified product innovation. Customer Value fully integrated under Ecosystem & Growth aligns delivery, adoption, and expansion into one unified growth engine. Stronger partner-led scalability because partners and CS teams collaborate under the same leadership. Better customer life-cycle management: onboarding → success → engagement → expansion all sit in one unit. Aligned research and product development Strong feedback loop from ecosystem for product development Corporate functions Finance Legal and compliance Investor relations Internal digital systems External growth Business Development Business development Partner network Ecosystem International Expansion Marketing Customer Success Customer Success Onboarding Academy Knowledge base Product & Innovation Engineering AI and Automation Product Management Data and ecosystem Product roadmap Product marketing Klappir Green Solutions hf. Annual Report 2025
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Board of Directors Board chosen on the 2025 annua l meeting Ágúst Einarsson Chairman of the Board Holds an MSc in Industrial and Business Engineering from Aalborg University. Ágúst has more than 25 years of experience as a CEO within the software industry. He advises high-tech and cloud businesses to transform and accelerate growth. He joined the Klappir board in April 2021. Hildur Jónsdóttir Co-founder and Board Member Holds a Master degree in psychology from Aarhus University, Denmark. Hildur is co-founder of Klappir and investor. Hildur is CEO of Kvistar Holding and Board member of Klappir ehf. She has been a board member since 2014. Vilborg Einarsdóttir Board Member Holds an MSc in Management and Strategy from University of Iceland and University of Commerce in Aarhus. Vilborg is the founder and CEO of BravoEarth and co-founder and former CEO of InfoMentor. She joined the board of Klappir in April 2022. Sigrún Hildur Jónsdóttir Co-Founder and Board Member R esponsible for the product vision and product management. Holds an MBA from the University of Iceland and MSc in Comparative P olitics (Conflict Study Stream ) from LSE, L ondon. She has been with Klappir since 2014. Sigur ður Þ órarinsson Board Member Holds an MSc in Industrial Engineering from the University of W ashington. Sigur ður is an technology executive with extensive international leadership experience. He has a solid track record in growing and improving business in various I T domains. He joined the Klappir board in April 202 3. Klappir Green Solutions hf. Annual Report 2025 24
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Our leaders Þorsteinn Svanur Jónsson Co-Founder and Business Development Isabelle Broddén Business Development Íris Karlsdóttir Partnership Hulda Þórhallsdóttir Customer Success Sólrún Sæmundsen Marketing Sigrún Hildur Jónsdóttir Co-Founder and Products Kristján Hall Engineering Ólöf Ásta Ólafsdóttir Finance Jón Ágúst Þorsteinsson Co-Founder and CEO Klappir Green Solutions hf. Annual Report 2025 25
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GOVERNANCE Risk management In the evolving market, rigorous and systematic risk management is paramount. The current risk landscape is significantly impacted by elevated geopolitical uncertainties, shifting regulatory environments, and dynamic market demands within the sustainable segments in which we operate. To ensure both short-term stability and long-term success, we manage risk from two perspectives: immediate operations and future strategy. Strategic Risk Mitigation Strategic planning includes analyzing future scenarios and risks from market, environmental, and political shifts. Each year, leadership reviews our strategic risk profile and aligns it with sustainability risks identified in our materiality assessment, ensuring a comprehensive risk outlook Operational Risk Management Process Our short- to medium-term risk exposure stems from our value chain and partner network. Additionally, like other global software companies, we face risks related to geopolitical instability and competition. We prioritize product quality, service excellence, and ethical business practices as fundamental components of our comprehensive risk management strategy. We evaluate risks based on their potential for financial loss and reputational damage. The Executive Board, Board of Directors, and Audit Committee conduct regular reviews of our critical operational risks. These reviews incorporate insights from management across the organization and address potential disruptions, including environmental, social, and governance (ESG) risks. A detailed overview of our key operational risks is provided on the following page Klappir Green Solutions hf. Annual Report 2025 26
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Key Operational risk 1. 2. 3. 4. 5. 5. 5. Risk area Political Uncertainty and Regulatory Requirements Product Development Risks Commercialization Risks I T Security Risks T alent scarcity and retention Financial Risks L egal , patents and compliance risks Description Recent political unrest, tariff tension and conflicts leading to changing regulatory requirements, delays in adoption, economic unrest and changes in attitude towards sustainability, environment or natural resources. We are a software product company and it is imperative for the business that we produce the right product for the right market at the right time. Also, there are risks related to product quality and availability. Competitive pressures, as well as marke t dynamics in a new unmapped, developing and changing market, leading to customer hesitance buy the product. Disruption to IT systems, such as cyber -attacks or infrastructure failure, resulting in business disruption or breach of data confidentiality Not being able to hire and retain the skills and knowledge needed to maintain and grow the business . Insufficient financing to sustain the business. Klappir is e xposed to various risk factors originating in the international financial markets, among which are liquidity risk, interest rate risk, foreign e x change risk and credit risk. Breach of legislation, industry codes and company policies . Impact Could have an adverse impact on sales, profits and market position. Could have adverse impact on our outsourced resources in Ukraine and Poland. Could have an adverse impact on product development costs and hence business outcome. Could have an adverse impact on sales, profits and market position. Unsuccessful in selling, delivering or onboarding the product. Unsuccessful on retaining the customer. Could limit our a bility to release the product and safeguard product quality. Could compromise our customer ’ s and user ’ s privacy. Could limit our a bility to maintain operations or limit future business opportunities if proprietary information is lost. Could compromise our reputation and hence impact sales. Could limit our a bility to deliver on business goals, e.g. product development, sales and customer support. Could have an adverse impact on sales, profits and market position. Could limit our a bility to e x ecute on our business plans (product, sales, etc.) as well as support our customers adequately. Could compromise our reputation and hence e.g. impact sales. Potential e xposure to investigations and penalties. Mitigation actions Select outsourcing resources in diverse regions. Tracking and analyzing regulatory requirements is a part of our market access strategy. Focus on appropriate use-case of the Platform in accordance with the political environment Use best practice product development methods. Hire and retain the right team with the right knowledge and skills. Continuously be on the lookout for new technology and solutions to support product development. Business continuity plans for the K lappir Platform. Focus on building the right product, find market fit. Build a strong partner network to ena ble sales and delivery, and maintain retention. Build a strong customer success team for efficient on boarding and support. Use best practice I T management, including I T IL , ISAE 3000 and ISO 27001 . Proactive company-wide information security awareness initiatives. Business continuity plans for I T systems. R egular company-wide e xternal audit of I T and platform security controls. Monitoring and prevention of vulnera bilities in I T and K lappir Platform. Build strong performance oriented team culture in the company. Invest in staff wellbeing and knowledge growth. Prioritize employee engagement, development, and colla boration for health, safety, and morale These risk factors are closely monitored and managed according to K lappir ’ s internal treasury policies. Internal controls through our quality system and procedures, including GDPR Implement ISO 27001 or equivalent. L egal review of key activities. Internal and e xternal audit of compliance with aforementioned standards and business ethics standards. Impact 7 High L o w Klappir Green Solutions hf. Annual Report 2025 6 2 5 4 3 Likelihood 1 High 27
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Stakeholder engagement Stakeholders Goals Engagement Channels Our Approach Partners Expand partnership network. Build trusted partner relationships. Foster strong working relationships. Stimulate sales through network activation. Customer success support. Partner meetings. Collaboration workshops. Joint customer visits. Conferences & Events. Foster strong working relationships. Conduct regular partner meetings. Support sales and onboarding processes. Provide education, training, and support through Customer Success. Rapidly grow the international customer base. Help customers achieve sustainability & compliance. Ensure effective use of the Klappir Platform. Share sustainability challenges and strategies. Support the transition to sustainability through the Klappir ecosystem. Customer success stories, exec interviews & newsletters Sales visits. Sales support materials. Help desk tickets. Attendance at conferences & events. Customer advisory board. Annual Customer & Partner Sustainability Impact Event. Educate customers about upcoming EU legislation. Assist in setting and achieving sustainability goals with high-quality onboarding and support. Provide comprehensive support and ongoing training to enhance customer experience and effectiveness. M onitor our own suppliers using our software Enhance Sustainability & Ensure Complianc e Foster Innovation & Build L ong-term Relationships Annual vendor performance assessments. Supplier Code of Conduct. Sustainability requirements in service agreements. Regular meetings. Encourage premium customers to engage their value chain using a freemium product. In-platform engagemen t Direct marketing Encourage sustainable decisions in the workplace and at home. Comply with Diversity & Inclusion (D&I ) requirements. Provide employee benefits. Foster a supportive and inclusive work environment. Provide regular training. Encourage D&I initiatives Segment and engage shareholders. Communicate the value and impact of being a shareholder. Ensure transparency in financial performance, business strategy, and sustainability efforts. Shareholder meetings. Newsletters. Investor meetings. M aintain transparency and compliance in financial performance, business strategy, and sustainability efforts. Provide assurance on financial stability and sustainability performance. M eetings. Financial, Sustainability & Impact Reports. Customers Suppl i ers Collaborate on sustainability goals. Improve data accuracy and ease of collection through the Klappir Platform. Our Customers ’ V alue Chain Emplo y ees Help customers achieve sustainability goals by engaging their suppliers. Support customers ' suppliers in becoming more successful. Foster a supportive and inclusive work environment. Provide regular training. Encourage D&I initiatives Provide regular updates through meetings and reports. Ensure transparency in all communications. Shareholders Financ ial Institut ions M aintain regular communication. Provide comprehensive financial and sustainability reports. Klappir Green Solutions hf. Annual Report 2025 28
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