Interim report
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INTERIM REPORT 2025 JANUARY-SEPTEMBER Strong quarter with growth and improved profitability despite a hesitant market July-September 2025 • Net sales increased during the quarter by 32,5 % to 112,4 MSEK (84,8). The organic and currency adjusted growth amounted to 0,1 %. • Adjusted EBITDA increased during the quarter by 18,0 MSEK to 18,6 MSEK (0,6) corresponding to an adjusted EBITDA margin of 16,6 % (0,7). • Operating profit/loss was 9,9 MSEK (-6,6), corresponding to an operating margin of 8,8 % (-7,8). • Profit/loss for the quarter was 7,7 MSEK (-7,5). • Result per share basic and diluted was 0,52 SEK (-0,51). • Cash flow from operating activities for the period was 31,3 MSEK (6,4). January-September 2025 • Net sales increased during the period by 18,4 % to 339,6 MSEK (286,7). The currency adjusted growth amounted to -5,5 %. • Adjusted EBITDA increased during the period by 79,3 % to 38,3 MSEK (21,3), corresponding to an adjusted EBITDA margin of 11,3 % (7,4). • Operating profit/loss was 8,3 MSEK (-5,9) which corresponds to an operating margin of 2,5 % (-2,0). • Profit/loss for the period was 7,1 MSEK (-9,4). • Result per share, basic and diluted was 0,49 SEK (-0,64). • Cash flow from operating activities for the period was 42,8 MSEK (47,6). Amounts in TSEK 2025 July-Sept 2024 July-Sept 2025 Jan-Sept 2024 Jan-Sept R12M Oct-Sept 2024 Full Year Net sales 112 381 84 812 339 596 286 718 473 323 420 445 Net sales growth, % 32,5 -2,4 18,4 2,6 14,9 3,9 Gross margin, % 69,6 66,9 68,6 67,5 69,0 68,3 Adjusted gross margin, % 69,6 66,9 68,6 68,5 69,0 68,9 Adjusted EBITDA 18 605 583 38 275 21 343 65 232 48 300 Adjusted EBITDA margin, % 16,6 0,7 11,3 7,4 13,8 11,5 EBITDA 18 146 583 34 116 18 579 58 467 42 930 EBITDA margin, % 16,1 0,7 10,0 6,5 12,4 10,2 Equity ratio, % 53,9 61,4 53,9 61,4 53,9 51,4 Cash flow from operating activities, MSEK 31,3 6,4 42,8 47,6 53,8 58,6 Net debt/EBITDA, R12M - - - - 1,1 2,4 Number of employees at end of period 150 122 - - - 168 For description and reconciliation of key figures, see pages 22-23. About TagMaster TagMaster is an application oriented technical company developing and selling advanced sensor systems and solutions based on radio, radar, magnetic and camera technologies for demanding environments. TagMaster works in two segments - Segment Europe and Segment USA – with the trademarks TagMaster, Citilog, Quercus and Sensys Networks – with innovative mobility solutions for increased efficiency, security, safety, comfort and to reduce environmental impact in Smart Cities. TagMaster has subsidiaries in England, France, Spain and US and exports mostly to Europe, The Middle East, Asia and North America through a global network of partners and system integrators. TagMaster was founded in 1994 and has its head office in Stockholm. TagMaster is a listed company and the share is traded at Nasdaq First North Premier Growth Market in S tockholm. TagMasters certified adviser (CA) is FNCA.
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TagMaster AB (556487-4534) Interim report January-September 2025 2 TRANSLATION Comments by the CEO I am pleased to report that we are delivering a strong third quarter with growth, improved gross margins, and increased profitability. This comes despite the quarter being marked by significant global uncertainty and a cautious stance in parts of the marke ts in which we operate. Achieving revenues of SEK 112.4 million in a hesitant market, representing an absolute increase of 32.5 percent compared to the third quarter of 2024 , demonstrates our strength. The positive outcome is partly attributable to our latest acquisition, Spanish Quercus, which is strengthening our B2B segment and thereby contributing positively to both growth and profitability. Demand for our solutions depends on long-term investment decisions and is therefore significantly influenced by the global economic uncertainty that also characterized the third quarter. Despite this, we are reporting stable revenues with improved profitability. A contributing factor to the positive development is that Quercus Technologies has significantly strengthened our offering within parking and access digitalization, while we have also increased the share of our sales directed towards corporate customers (B2B). This complements the Group’s other business, which is predominantly focused on the public sector (B2G), and makes us somewhat less exposed to the uncertainties that often cause delays in public- sector decision-making. During the quarter, the Group-wide efficiency program initiated in the second quarter for operations in the UK, France, and Spain was completed. The program was slightly expanded during the third quarter and will result in annual cost savings of just over SEK 12 million, with full effect from the latter part of the fourth quarter. Our steady progress in the technology sector continues within relevant technologies for Intelligent Transport Systems (ITS), positioning us well to meet the growing demand for multi-sensor solutions. With a total of 50 development engineers, 27 of whom are focused on further advancing AI-based video solutions, we have the capacity to develop industry-leading solutions. In the third quarter, investments in product development amounted to approximately 14 percent of the Group’s total revenues. The Group’s sales in the third quarter amounted to SEK 112.4 million, an increase of 32.5 percent compared with the same period in 2024. The quarter’s organic revenue change, adjusted for currency effects and acquisitions, amounted to SEK 0.1 million, corresponding to an increase of 0.1 percent. The Group’s total costs increased by SEK 3.5 million compared with the same period last year, which is entirely explained by the inclusion of newly acquired Quercus as of December 2024. Excluding these costs, the Group’s total expenses were approximately SEK 6 million lower than in the same period last year. Traffic Solutions ales in the third quarter amounted to SEK 97.7 million, an increase of approximately 27 percent compared with the corresponding quarter in 2024. During the quarter, Traffic Solutions accounted for 87 percent of sales, while Rail Solutions represented 13 percent. The Group’s gross margin for the quarter amounted to 69.6 (66.9) percent, with adjusted EBITDA of SEK 18.6 million, corresponding to an adjusted EBITDA margin of 16.6 percent. Cash flow from operating activities totaled SEK 31.3 million, and the Group’s solvency ratio stood at 53.9 percent at the end of the period. Efforts to reduce working capital remain a key focus. Sequentially, inventory for comparable units increased by just under 3 percent, but compared with the corresponding quarter last year it decreased by just over 10 percent. Looking ahead, I can conclude that TagMaster is well positioned to contribute to solutions addressing some of the major challenges facing global transport systems such as traffic congestion in densely populated areas, improved traffic safety, and reduced emissions from transportation. This is driving increased demand for our solutions, and we remain firmly committed to further strengthening TagMaster’s position, despite the uncertainty surrounding tariffs, geopolitics, and regulations which has contributed to a cautious market sentiment. Jonas Svensson, CEO
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TagMaster AB (556487-4534) Interim report January-September 2025 3 TRANSLATION TagMaster in brief TagMaster develops and delivers solutions for Smart Cities based on advanced sensor technology. These solutions aim to improve traffic flow, reduce emissions, and optimize transport operations, on both road and rail. Vision We will be the most innovative provider of mobility solutions to Smart Cities. Mission We will deliver reliable and easy-to-use detection and identification solutions for demanding environments with useful and accurate information. Business model By combining the various technologies the Group operates with, TagMasters aim is to offer better solutions to increase the efficiency, safety, convenience and to reduce environmental impact within Smart Cities. The technologies are offered as a package with software to create smart technologies and “one-stop-shop solutions”. TagMaster takes long-term responsibility for the products and solutions provided, which creates value and stability for TagMasters customers and profitability for TagMaster. Financial Targets Growth: 20% total growth (organic and acquired) Adjusted EBITDA: >12% Cashflow/EBITDA: > 85% over a three-year period Strategic priorities • Commercial strength - drive growth through excel sales performance and commercial digitization. • Customer-driven innovation – make investments required for leadership within selected technologies, enhanced customer value and lower production costs. • Constant operational improvements – ensure an efficient and flexible supply chain, further strengthen TagMaster’s quality position and continue improvements to reduce costs. • Expanded product offering – continuously move up in the value chain, from not merely offering products to offering broader systems and solutions for the customer and extending our offering through M&A. Financial calendar February 5, 2026: Earnings release 2025 March 27, 2026: Annual Report 2025 available on web site April 24, 2026: Interim report first quarter 2026 April 27, 2026: Annual general meeting, Kista July 17, 2026: Interim report second quarter 2026 October 28, 2026: Interim report third quarter 2026 February 4, 2027: Earnings release 2026 This report and previous reports and press releases are found at the company home page www.tagmaster.com. For further information contact: Jonas Svensson, CEO, +46 8-6321950, Jonas.svensson@tagmaster.com This information is information that TagMaster AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8.00 a.m. CET on October 23, 2025.
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TagMaster AB (556487-4534) Interim report January-September 2025 4 TRANSLATION Summary result information Amounts in TSEK 2025 July-Sept 2024 July-Sept % R12M Oct-Sept 2024 Full Year % Net sales 112 381 84 812 32,5 473 324 420 445 12,6 Other revenue 1 611 500 222,1 6 101 3 280 86,0 Gross profit 78 257 56 704 38,0 326 471 287 095 13,7 Gross margin, % 69,6 66,9 - 69,0 68,3 - Adjusted gross profit 78 257 56 704 38,0 326 471 289 859 12,6 Adjusted gross margin, % 69,6 66,9 0,0 69,0 68,9 - Operating expenses1 -61 722 -56 621 9,0 -274 105 -247 445 10,8 Adjusted EBITDA 18 605 583 3 091,2 65 232 48 300 35,1 Adjusted EBITDA margin, % 16,6 0,7 - 13,8 11,5 - Non-recurring items -459 - - -6 765 -5 370 26,0 EBITDA 18 146 583 3 012,5 58 467 42 930 36,2 EBITDA margin, % 16,1 0,7 - 12,4 10,2 - Amortisation of other non-current intangible asstets2 -302 -532 -43,2 -1 445 -2 096 - 31,1 Depreciation -2 514 -2 647 -5,0 -11 022 -10 823 1,8 Adjusted EBITA 15 792 -2 596 -708,3 52 765 35 381 49,1 Adjusted EBITA margin, % 14,1 -3,1 - 11,1 8,4 - EBITA 15 332 -2 596 -690,6 46 000 30 011,0 53,3 EBITA margin, % 13,6 -3,1 - 9,7 7,1 - 1Other external expenses, Other operating expenses and Personnel expenses 2 Amortisation of intangible assets attributable to acquisitions is not included in the item. Organic change, net sales Amounts in TSEK 2025 July-Sept % 2024 July-Sept % 2025 Jan-Sept % 2024 Jan-Sept % Net sales comparison period previous year 84 812 86 896 286 718 279 451 Organic change 87 0,1 -15 047 -17,3 -15 662 -5,5 -39 029 -14,0 Change through acquisitions 30 363 35,8 15 144 17,4 77 962 27,2 46 938 16,8 Exchange rate change -2 881 -3,4 -2 181 -2,5 -9 422 -3,3 -642 -0,2 Total change 27 569 32,5 -2 084 -2,4 52 878 18,4 7 267 2,6 Net sales 112 381 84 812 339 596 286 718 For description and reconciliation of key figures, see pages 22 - 23. 1 Personnel expenses, other external expenses and other operating expenses 2 Amortisation of intangible assets attributable to acquisitions is not included in the item 0 20 40 60 80 100 120 2021 2022 2023 2024 2025 Net Sales Third Quarter 2021-2025 Mkr 0 50 100 150 200 250 300 350 400 2021 2022 2023 2024 2025 Net Sales January-September 2021-2025 Mkr
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TagMaster AB (556487-4534) Interim report January-September 2025 5 TRANSLATION Segment TagMaster Europe TagMaster develops and delivers solutions aimed at improving and streamlining transport and traffic flows. These include smart parking solutions and intelligent transport systems that allow the road networks to be used optimally, alleviate traffic problems and reduce emissions. Other solutions include tolls and security and access control systems. TagMaster is also a leading provider of advanced mobility solutions for rail bound traffic in metropolitan areas. The business is conducted in the parent company and in the subsidiaries in France , UK and Spain. Development is centralized and managed by the European CTO. The CFO function is centralized with local accounting functions. Sales and marketing are managed by a centralized sales director and a centralized marketing director. Business during the quarter Sales for the Europe segment in the third quarter amounted to SEK 76.2 million, an increase of 101.5 percent compared with the same period in 2024. Adjusted for acquisitions and currency effects, sales corresponded to an increase of 23.3 percent. The gross margin was 68.9 percent, a decline of 5.7 percentage points compared with the third quarter of 2024. The lower gross margin is explained by Quercus operating with a slightly lower gross margin than the rest of the Group. Costs were higher compared with the third quarter of 2024, as newly acquired Quercus has been consolidated since December 2024. Excluding this effect, costs were just over SEK 3 million lower Adjusted EBITDA for the third quarter amounted to SEK 12.3 million, corresponding to an adjusted EBITDA margin of 16.2 percent. During the quarter, Traffic Solutions accounted for 80 percent of segment sales, while Rail Solutions represented 20 percent. During the quarter, a Group-wide efficiency program for operations in the UK, France, and Spain was completed. The program aimed to increase organizational efficiency, simplify structures, and reduce costs, while at the same time continuing investments in the development of industry-leading products and increased commercial capacity. The program was slightly expanded during the period and the measures are expected to result in annual cost savings of just over SEK 12 million, with full effect from the latter part of the fourth quarter of 2025. TagMaster recognized a one-off cost of approximately SEK 4 million in the previous quarter related to the efficiency program. TagMaster’s French subsidiary Citilog continues to market its updated Automatic Incident Detection (AID) system to both new and existing customers. The new software includes a number of groundbreaking modules such as Early Smoke Detection, Wrong Way Detection, and Lane Change Detection, as well as several new AI-powered detection modules. During the quarter, the Europe Segment delivered RFID solutions to metro systems in Spain, China, and Malaysia, as well as to tram systems in Spain, Belgium, France, and China. TagMaster also supplied RFID access systems for taxi parking facilities at airports in Norway. Quercus delivered systems during the quarter to various parking projects in Australia, Mexico, the USA, and Arena Milano, which will host the opening ceremony of the 2026 Winter Olympic Games. Citilog, in turn, delivered the latest generation of video-based incident management systems built on Deep Learning and with full in-camera analytics capability, to the Lion Rock Tunnel in Hong Kong. TagMaster’s commitment to active travel - cycling and pedestrian traffic - within the Infomobility application area continues, both in product development and marketing. All Infomobility products are now connected (IoT) and can be powered by solar panels and batteries. In the third quarter, deliveries included solar-powered counting stations to Lille and Lisieux in Northern France. In England, equipment was delivered for several local counting stations to both Moray Council and West Berkshire Council. TagMaster assesses that most European markets will continue to expand their infrastructure investments, although the company sees some short-term delays in investments linked to a generally weaker European economy. These represent temporary fluctuations in business, which is normal since projects such as tunnels, bridges, metro systems, and tramway projects are tied to uneven investment cycles. Amounts in TSEK 2025 July-Sept 2024 July-Sept Change, % 2025 Jan-Sept 2024 Jan-Sept Change, % Net Sales 76 151 37 791 101,5 220 318 145 276 51,7 Gross profit 52 500 28 182 86,3 149 536 104 888 42,6 Gross margin, % 68,9 74,6 - 67,9 72,2 - Adjusted EBITDA 12 340 -6 177 - 16 538 -971 - Adjusted EBITDA margin, % 16,2 -16,3 - 7,5 -0,7 - Number of employees at end of period 114 83 37,3 114 83 37,3 The effects of accounting for leases under IFRS 16 and capitalization of development expenditure in accordance with IAS 38 are not included in the table above.
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TagMaster AB (556487-4534) Interim report January-September 2025 6 TRANSLATION Segment TagMaster USA Sensys Networks develops and delivers advanced wireless radar and magnetic sensors as well as well as a cloud - based software platform known as SNAPS used for analyses of traffic data using embedded AI technology and for monitoring of the sensors and local edge g ateways. Sensys Networks offer an “end -to-end solution” that is primarily designed for controlling and optimizing traffic lights, bit it is also well suited for road and motorway monitoring, as well as for parking solutions. Sensys Networks is considered a leader in above solutions. The business is conducted in the wholly owned subsidiary Sensys Networks Inc with office in Berkeley, California. The operation is managed by the local president reporting to the group CEO. Sensys Networks Inc have a local CTO managing development and operation, a local VP finance and VP sales and marketing, all reporting to the local president. Business during the quarter Sales for the US segment in the third quarter amounted to SEK 36.2 million, a decrease of 22.9 percent compared with the same period last year. Adjusted for acquisitions and currency effects, sales corresponded to a decrease of 18.5 percent. The gross margin was 71.1 percent, an increase of 10.4 percentage points compared with the third quarter of 2024. The increase is partly explained by cost-saving initiatives within a product group where the gross margin improved by just under 10 percentage points, as well as by consistent price discipline. Costs were just over SEK 3 million lower compared with the third quarter of 2024, driven both by a lower exchange rate and by general cost savings. Adjusted EBITDA for the third quarter amounted to SEK 4.1 million, corresponding to an adjusted EBITDA margin of 11.4 percent. In the US segment, Traffic Solutions accounted for 100 percent of sales. With the acquisition of the radar business (RTMS) from US-based Image Sensing Systems (ISS) completed in the third quarter of 2023, Sensys Networks is well positioned to take a leading role in multi-sensor solutions, where demand is expected to grow. During the quarter, TagMaster continued to develop its AI-based multi-sensor platform, which in addition to the aforementioned radar sensor also includes camera sensors with Deep Learning software from Citilog. With the MultiSens Intersection solution, TagMaster delivers video-based real-time analytics while wireless in-road sensors detect approaching vehicles. The system can distinguish between vehicles and vulnerable road users such as pedestrians and cyclists, providing road and traffic operators with a comprehensive picture of traffic conditions. In August, at the ITS World Congress in Atlanta, USA, the new multi-sensor platform was launched, with pilot projects set to begin later this year and in the first quarter of 2026. The platform is a vital part of TagMaster’s expanded product and service offering and represents an important step in the continued focus on growth in the US market. During the quarter, the US Segment received major orders for traffic light detection systems in Romania, South Africa, and Saudi Arabia, as well as several systems in the US, including in San Francisco, St. Louis, and New Jersey. In addition, radar products were delivered to projects in Michigan and Indiana. TagMaster assesses that the US market has significant medium-term growth potential, although in the short term it is affected by the ongoing reviews of the various infrastructure programs launched by the previous administration. Amounts in TSEK 2025 July-Sept 2024 July-Sept Change, % 2025 Jan-Sept 2024 Jan-Sept Change, % Net Sales 36 230 47 021 -22,9 119 278 141 442 -15,7 Gross profit 25 757 28 522 -9,7 83 390 88 662 -5,9 Gross margin, % 71,1 60,7 - 69,9 62,7 - Adjusted gross margin, % 71,1 60,7 - 69,9 64,6 - Adjusted EBITDA 4 124 4 430 -6,9 14 619 15 067 -3,0 Adjusted EBITDA margin, % 11,4 9,4 - 12,3 10,7 - Number of employees at end of period 36 39 -7,7 36 39 -7,7 The effects of accounting for leases under IFRS 16 and capitalization of development expenditure in accordance with IAS 38 are not included in the table above.
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TagMaster AB (556487-4534) Interim report January-September 2025 7 TRANSLATION Consolidated net sales and earnings July – September 2025 Net sales Net sales for the quarter amounted to 112,4 (84,8) MSEK, representing an increase of 32,5 percent compared to the corresponding quarter of the previous year. The quarter's organic revenue change – adjusted for currency effects of -2,9 MSEK and changes due to acquisitions of 30,4 MSEK – amounted to 87 TSEK, which corresponds to 0,1 percent. The change attributable to acquisitions is entirely related to the subsidiary Quercus, which was acquired in the fourth quarter of 2024. The Group’s European segment reported an organic revenue increase of 8,8 MSEK, corresponding to 23,3 percent. The American segment reported an organic revenue decline of -8,7 MSEK, corresponding to -18,5 percent. Operating profit/loss The operating profit for the quarter amounted to 9,9 MSEK (-6,6), representing an increase of 16,5 MSEK compared to the corresponding period of the previous year. The improved operating result was driven by higher revenue combined with an increased gross margin and lower costs relative to income. Other external expenses and personnel costs as a percentage of net sales amounted to 52,9 percent, compared with 66.0 percent in the corresponding period last year. The higher gross margin, 69,6 percent compared with 66,9 percent, was mainly attributable to changes in the product and customer mix. Adjusted EBITDA Adjusted EBITDA increased to 18,6 MSEK (0,6), corresponding to a margin of 16,6 percent (0,7). The improvement in the EBITDA margin, similarly to the increase in operating profit, was driven by higher revenue combined with proportionally lower cost levels. Items affecting comparability During the quarter, the cost-saving program within the Group’s European segment was completed, which resulted in additional non-recurring personnel costs of 0,4 MSEK and other costs of 0,1 MSEK. Financial items Financial items for the quarter amounted to -0,6 MSEK (-0,4). The financial expenses impacting the quarter included interest expenses on liabilities to credit institutions of -1,7 MSEK (-1,2), as well as currency exchange effects related to these liabilities of 0,6 MSEK (1,7). Tax The group's tax amounted to -1,7 (-0,5) MSEK and was attributable to current tax and changes in temporary differences and tax revenue based on the French subsidiary Citilog’s development expenditure incurred. Profit for the period Profit for the period amounted to 7,7 (-7,5) MSEK. Earnings per share before and after dilution amounted to 0,52 (-0,51) SEK. January – September 2025 Net sales The sales for the nine-month period amounted to 339,6 MSEK (286,7), representing an increase of 18,4 percent compared to the corresponding period previous year. The organic net sales growth for the year – adjusted for currency effects of -9,4 MSEK and changes due to acquisitions of 78,0 MSEK – amounted to -15,7 MSEK. The change attributable to acquisitions is entirely related to the subsidiary Quercus, which was acquired in the fourth quarter of 2024. Operating profit/loss The nine-month period operating profit/loss amounted to 8,3 MSEK (-5,9), reflecting an increase of 14,2 MSEK compared to the corresponding period previous year. The improvement in operating profit was primarily attributable to higher revenue, a stronger gross margin and lower costs relative to income. Other external expenses and personnel expenses represented 58,6 percent of net sales, compared with 61,1 percent in the corresponding period of the previous year. The higher gross margin, 68,6 percent compared with 67,5 percent, mainly reflected changes in the product and customer mix.
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TagMaster AB (556487-4534) Interim report January-September 2025 8 TRANSLATION Items affecting comparability During the quarter, a cost savings program was implemented within the Group’s European segment, which resulted in additional non-recurring personnel costs of 3,6 MSEK and other costs of 0,6 MSEK. Adjusted EBITDA Adjusted EBITDA increased to 38,3 MSEK (21,3), corresponding to a margin of 11,3 percent (7,4). The improved EBITDA margin, like the improvement in operating profit, was attributable to higher revenue combined with proportionally lower cost levels. Financial items Financial items for the period amounted to 1,5 MSEK (-3,6). The financial expenses impacting the period include interest expenses on liabilities to credit institutions of -5,8 MSEK (-4,2). The revaluation of these liabilities has affected the net financial result by 6,5 MSEK (-0,5). Tax The group's tax amounted to -2,7 MSEK (0,1). The tax for the period relates to tax on the parent company's result and changes in temporary differences, Profit/loss for the year Profit/loss for the period amounted to 7,1 MSEK (-9,4). Earnings per share before and after dilution amounted to 0,49 SEK (-0,64). Post balance sheet events No events that are to be regarded as material have occurred between the balance sheet date and the date of submission of the interim report.
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TagMaster AB (556487-4534) Interim report January-September 2025 9 TRANSLATION Consolidated balance sheet and cash flow Liquidity and cash flow As of September 30, 2025, the Group's available liquidity amounted to 68,6 (68,0) MSEK, of which overdraft facilities amounted to 26,8 (21,1) MSEK. As of September 30, 2025, the Group's overdraft facility of 30,0 MSEK was utilized by 14,2 (20,4) MSEK, while the overdraft facility in EUR of 1,0 MEUR was utilized by 0 (0) MSEK. At the end of the period, the Group's cash and cash equivalents amounted to 41,8 (46,9) MSEK. Cash flow July – September 2025 The quarter's cash flow amounted to 9,2 (-7,9) MSEK and was distributed as follows: - 31,3 (6,4) MSEK from operating activities. - -1,2 (-0,2) MSEK to investment activities. - -21,0 (-14,0) MSEK to financing activities, which included repayment of loan repayments of -10,7 (-3,9) MSEK, changes in bank overdraft facilities of -7,9 (-7,9) MSEK, and lease liability amortisation of -2,4 (-2,2) MSEK. Cash flow January – September 2025 The quarter's cash flow amounted to -1,1 (23,8) MSEK and was distributed as follows: - 42,8 (47,6) MSEK from operating activities. - - 1,9 (-0,3) MSEK to investment activities. - -42,0 (-23,5) MSEK to financing activities, which included loan repayments of -28,6 (-14,2) MSEK, changes in bank overdraft facilities of -6,1 (-2,4) MSEK, and lease liability amortisation of -7,1 (-6,9) MSEK. Investments In 2025, investments in tangible fixed assets amounted to 1,2 (0,6) MSEK. No investments were made in intangible fixed assets. Goodwill and other intangible assets The Group's carrying amount of goodwill on September 30, 2025, was 148,0 (159,0) MSEK. Other intangible assets amounted to 67,1 (92,0) MSEK and relate to capitalized development expenditure of 20,0 (27,7) MSEK and customer relations of 39,0 (54,5) MSEK and trademark of 8,1 (9,7) MSEK. During the period, the preliminary purchase price allocation relating to the acquisition of Quercus was adjusted. The adjustment resulted in an increase in goodwill of 2,7 MSEK. For further information, see page 11 under the heading Business Combinations. Other changes compared with the carrying amount as of 31 December 2024 referred to amortization of –17,6 MSEK and a translation difference of –21,1 MSEK. Right-of-use assets and lease liabilities The carrying amount of right-of-use assets (lease agreements for premises) amounted to 12,8 (18,3) MSEK. The corresponding leasing liabilities amounted to 12,9 (18,6) MSEK. The cost of short-term leases for the first half year amounted to 2,0 (1,5) MSEK. Other non-current receivables Other non-current receivables as of September 30, 2025, amounted to 3,7 (3,7) MSEK and consisted to the most part of the French subsidiary Citiogs tax receivables (based on discontinued development costs) that are expected to be paid later than twelve months after the end of the reporting period. Deferred tax assets Deferred tax assets as of September 30, 2025, amounted to 47,9 (55,9) MSEK and is mainly related to the valuation of tax loss carryforwards and temporary differences attributable to the U.S. subsidiary’s development expenditures. Inventories Inventories as of September 30, 2025, amounted to 66,7 (68,7) MSEK. Inventory value attributable to Quercus amounted to 10,0 (13,1) MSEK.
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TagMaster AB (556487-4534) Interim report January-September 2025 10 TRANSLATION Accounts receivable Accounts receivable as of September 30, 2025, amounted to 66,0 (91,9) MESK, whereof 9,3 (14,2) MSEK was attributable to Quercus. The decrease was mainly explained by the temporarily high level at the end of 2024, resulting from extensive invoicing towards the end of the year, whereas trade receivables as of 30 September 2025 have returned to a more normalized level. Liabilities to credit institutions As of 30 September 2025, the Group’s liabilities to credit institutions amounted to 83,8 (125,2) MSEK and consisted of acquisition loans of 61,2 (84,8) MSEK, utilized overdraft facilities of 14,3 (20,4) MSEK, and 8,3 (20,9) MSEK attributable to the subsidiary Quercus. During the period, the acquisition loan was amortized by 17,5 MSEK. In the corresponding period of the previous year, the amortization amounted to 14,2 MSEK. Quercus’s liabilities to credit institutions were repaid by 11,0 MSEK during 2025. Equity Equity as of September 30, 2025, amounted to 256,0 (286,3) MSEK, corresponding to 17,47 (19,54) SEK per outstanding share. There were no outstanding stock options or convertible programs on September 30, 2025. Financial position The equity ratio amounted to 53,9 (51,4) percent on September 30, 2025, and equity to 256,0 (286,3) MSEK. Total assets on September 30, 2025, amounted to 474,6 (556,7) MSEK. The comparative figures for income statement and cash flow items refer to the corresponding period of the previous year, while the comparative figures for balance sheet items refer to the position as of 31 December 2024.
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TagMaster AB (556487-4534) Interim report January-September 2025 11 TRANSLATION Business combinations On November 28, 2024, 92,5 percent of the shares in the Spanish company Quercus Technologies S.L (Quercus) were acquired. Quercus, designs and manufactures video based advanced digital solutions for the parking industries. The company is headquartered in Reus, Spain, and has installations in over 100 countries worldwide. Through the acquisition TagMaster significantly strengthens its offering for parking access, management, and security, and increases its sales to business customers (B2B) to complement its currently predominantly government business. The purchase price upon close of the transaction is € 5,5 million. In addition, a deferred purchase price of approx. 0,45 MEUR for the remaining 7,5 percent of the shares will be paid in 2028 (call-put option). The option has been recognized as financial liability and the acquisition has been recognized as if TagMaster exercises control over 100 percent of the shares. Finally, a performance-based additional payment (earn-out) of a maximum of 1 MEUR, conditional on improved sales, will be paid in three equal installments at the end of 2025, 2026 and 2027. 2028. The acquisition is an all-cash transaction funded by cash at hand and a new bank debt facility of 4,0 MEUR. Acquisition related expenses of 0,6 MSEK have been recognized as other expenses in the income statement. During the period, the preliminary purchase price allocation for Quercus was adjusted based on new information regarding the valuation of receivables related to the sale of one of Quercus’ subsidiaries completed prior to TagMaster’s acquisition. The revaluation resulted in an increase in goodwill of 2,7 MSEK. The assets and liabilities recognized as a result of the acquisition are as follows: Fair Value TSEK Non-current assets Capitalized development expenditure 16 275 Customer relationships 29 636 Non-current receivables 5 225 Property, plant and equipment 2 045 Current assets Inventories 13 522 Trade receivables 13 006 Total current receivables 1 865 Cash and cash equivalents 2 740 Non-current liabilities Liabilities to credit institutions -7 821 Other financial liabilities -3 525 Current liabilities Liabilities to credit institutions -12 566 Trade payables -14 385 Total current liabilities -4 555 Identifiable assets and liabilities, net 41 462 Transferred remuneration 66 726 Option to acquire shares owned by Montauk Investment S.L (equivalent to 7,5 percent of the shares)1 4 316 Additional purchase consideration1 9 482 Goodwill 39 062 Net cash flow from the acquisition of Quercus Transferred remuneration 66 726 Deduction: Acquired cash and cash equivalents -2 740 Net cash flow 63 986 1 Fair value of acquired inventories have been calculated as the dealer price deducted for estimated shipping and selling costs.
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TagMaster AB (556487-4534) Interim report January-September 2025 12 TRANSLATION Note that the purchase price allocation above is preliminary and can be subject to changes. The surplus value attributable to capitalized development expenditure to 9,2 MSEK, with an estimated useful life of 5 years. For customer relationships with a fair value of 29,6 MSEK, the estimated useful life is 7 years. Consequently, future annual amortisations for these two items amount to 6,0 MSEK. No part of the goodwill arising in connection with the acquisition is expected to be tax deductible. Deferred tax attributable to the acquisition of Quercus on December 31, 2024, totaled to approximately 3,3 MSEK. In the acquisition analysis, a corresponding amount is recognized as a deferred tax asset attributable to tax loss carry- forwards. In the consolidated statement of financial position, these two items are recognized net. Goodwill arose on the acquisition, as the transferred remuneration also included amounts related to synergies, revenue increases, development of future markets and the combined workforce of the division. These benefits have not been recognized separately from goodwill because they do not meet the criteria for recognition of identifiable intangible assets. During 2025 Quercus contributed with revenue of 78,0 MSEK and operating profit of 14,3 MSEK Parent Company The operations of the parent company TagMaster AB are consistent with the operations of the Group as a whole. Net sales for the nine-month period amounted to 81,0 (78,9) MSEK, of which invoicing of intra -group services and intra- group sales of goods amounted to 12,7 (13,9) MSEK. As of September 30, 2025, available liquidity amounted to 29,3 (32,6) MSEK, of which the overdraft credit amounted to 26,8 (21,1) MSEK. No significant investments have been made in intangible or tangible fixed assets. During the period, a reorganisation was carried out, resulting in the UK subsidiary becoming a pure sales entity. As a consequence of this structural change, an impairment test of shares in subsidiaries was performed. The analysis resulted in an impairment charge of 35 MSEK, recognised in the parent company. The impairment has no impact on the Group’s consolidated earnings or equity. Other information Personnel At the end of the year, the number of employees was 150 (122) of which employees of Quercus amount to 40. Future outlook The current global uncertainty, driven by the escalating situation around international tariffs, calls for a cautious approach in the near term. TagMaster is managing its operations accordingly, with a focus on long-term growth, cost control, and operational efficiency. The Group remains focused on what it can control and is taking measures to defend its market position and improve profitability. TagMaster’s growth strategy is based on organic expansion and acquisitions within existing and adjacent technology areas, aiming to broaden its product and solution offerings as well as its market presence. TagMaster’s data solutions and sensor products are developed to prevent traffic congestion, reduce transportation emissions, and enhance safety by optimizing current and future traffic flows. The goal is to be an attractive provider of data-driven real-time information, which is a fundamental prerequisite for building the Smart Cities of the future. The Group’s Board of Directors and management remain optimistic about the long-term outlook. With increased volume and a broader offering that extends further into data solutions and software in key growth areas, the company has strong long-term growth potential. Auditor’s review This report has been reviewed by the company auditor. Declaration The Board of Directors and the CEO assure that the interim report provides a fair overview of the parent company's and the group's operations, position, and results, as well as describing significant risks and uncertainties faced by the parent company and the companies within the group. Kista October 23, 2025 Jonas Svensson Chief Executive Officer
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TagMaster AB (556487-4534) Interim report January-September 2025 13 TRANSLATION Auditors report This is a translation of the Swedish original. For any interpretation the Swedish version prevails TagMaster AB (publ). reg. no. 556487-4534 Introduction We have reviewed the condensed interim report of Tagmaster AB (publ) as of 30 September 2025 and the nine- month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. Scope of Review We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company. Stockholm, 23 October 2025 Öhrlings PricewaterhouseCoopers AB Aleksander Lyckow Authorized Public Accountant
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TagMaster AB (556487-4534) Interim report January-September 2025 14 TRANSLATION Summary consolidated income statement Amounts in TSEK 2025 July-Sept 2024 July-Sept 2025 Jan-Sept 2024 Jan-Sept 2024 Jan-Dec Net sales 112 381 84 812 339 596 286 718 420 445 Other revenue 1 611 500 3 998 1 177 3 280 Change in inventories during manufacture and finished goods 656 241 1 333 1 016 -34 Goods for resale, raw materials and consumables -34 779 -28 349 -108 003 -94 184 -133 316 Other external expenses -14 861 -13 532 -47 689 -42 892 -60 851 Personnel expenses -44 541 -42 418 -151 178 -132 164 -184 536 Depreciation of property, plant and equipment and amortisation of intangible assets -8 220 -7 201 -25 791 -24 523 -32 626 Other operating expenses -2 321 -671 -3 941 -1 092 -2 058 Operating profit/loss 9 926 -6 618 8 325 -5 944 10 304 Financial net -577 -337 1 465 -3 607 -7 285 Profit/loss before tax 9 349 -6 955 9 790 -9 551 3 019 Tax -1 664 -527 -2 679 138 1 643 Profit for the period 7 685 -7 482 7 111 -9 413 4 663 Net income attributable to: Shareholders in the Parent Company 7 685 -7 482 7 111 -9 413 4 663 Earnings per share, SEK Basic earnings per share 0,52 -0,51 0,49 -0,64 0,32 Diluted earnings per share 0,52 -0,51 0,49 -0,64 0,32 Consolidated statement of other comprehensive income Profit for the period 7 685 -7 482 7 111 -9 413 4 663 Items that may be reclassified to profit or loss Exchange differences when translating foreign operations -3 339 -8 618 -37 407 4 532 21 789 Items not to be reclassified to the income statement Remeasurement of the net pension obligation - - - - 694 Tax on the above - - - - -179 Comprehensive income for the period 4 346 -16 100 -30 295 -4 880 26 967 Comprehensive income attributable to: Shareholders in the Parent Company 4 346 -16 100 -30 295 -4 880 26 967
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TagMaster AB (556487-4534) Interim report January-September 2025 15 TRANSLATION Summary consolidated statement of financial position Amounts in TSEK 2025-09-30 2024-09-30 2024-12-31 ASSETS Non-current assets Intangible assets 215 095 164 462 251 015 Property, plant, and equipment 3 439 1 985 3 820 Right-of-use assets 12 750 14 412 18 286 Other non-current receivables 3 698 4 228 3 744 Deferred tax assets 47 926 46 311 55 911 282 908 231 398 332 777 Current assets Inventories 66 700 59 779 68 708 Trade receivables 66 031 60 952 91 925 Other receivables 17 244 13 989 16 391 Cash and cash equivalents 41 758 48 471 46 891 191 733 183 191 223 915 TOTAL ASSETS 474 641 414 590 556 693 SHAREHOLDERS’ EQUITY Share capital 18 309 18 309 18 309 Other contributed capital 241 459 241 459 241 459 Translation reserve -853 19 298 36 554 Retained earnings including profit for the period -2 960 -24 660 -10 071 255 956 254 406 286 251 Non-current liabilities Liabilities to credit institutions 44 656 26 067 65 067 Other financial liabilites 4 323 - 4 317 Deferred tax liabilities 2 279 2 252 2 196 Other provisions 21 500 16 902 18 772 Additional purchase consideration 6 245 - 6 041 Lease liabilities 7 104 6 896 8 542 Other non-current liabilities 1 941 1 705 1 938 88 048 53 821 106 872 Current liabilities Trade payables 27 515 19 727 33 280 Liabilities to credit institutions 39 178 24 087 60 133 Other financial liabilites 3 383 - 3 791 Other provisions - 2 454 747 Additional purchase consideration 3 598 - 3 481 Lease liabilities 5 792 7 815 10 087 Other liabilities 51 171 52 281 52 051 130 638 106 363 163 569 TOTAL EQUITY AND LIABILITIES 474 641 414 590 556 693
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TagMaster AB (556487-4534) Interim report January-September 2025 16 TRANSLATION Summary consolidated statement of changes in equity Amounts in TSEK 2025-09-30 2024-09-30 2024-12-31 Opening shareholders' equity 286 251 259 285 259 285 Profit for the period 7 111 -9 413 4 663 Other comprehensive income -37 407 4 532 22 303 Closing shareholders' equity 255 956 254 406 286 251 Equity attributable to shareholders in the Parent Company. Summary consolidated statement of cash flows Amounts in TSEK 2025 July-Sept 2024 July-Sept 2025 Jan-Sept 2024 Jan-Sept 2024 Jan-Dec Operating activities Operating profit/loss 9 926 -6 618 8 325 -5 944 10 304 Adjustments for non-cash items 5 846 7 201 25 791 24 523 32 626 Interest paid -1 481 -1 436 -5 889 -4 699 -6 352 Interest received 670 394 1 084 975 1 229 Tax paid - - - - -1 353 Tax received 1 423 - 1 423 - 1 949 Cash flow from operating activities before changes in working capital 16 384 -459 30 734 14 855 38 403 Change in inventories -2 354 2 712 -2 762 20 301 27 252 Change in operating receivables 16 179 -1 732 12 042 11 531 -790 Change in operating liabilities 1 134 5 884 2 818 954 -6 226 Cash flow from operating activities 31 343 6 405 42 832 47 641 58 639 Investing activities Acquisition of subsidiaries, less acquired cash and cash equivalents - - - 253 -63 733 Payment of deposits -655 - -655 - - Investments in property, plant and equipment -495 -235 -1 241 -594 -874 Cash flow from investing activities -1 150 -235 -1 896 -341 -64 607 Financing activities Borrowings - - - - 45 577 Repayment of loans -10 740 -3 944 -28 564 -14 187 -18 380 Change in bank overdraft facilities -7 852 -7 890 -6 088 -2 437 8 127 Repayment of other financial liabilities - - -270 - - Lease liabilities -2 417 -2 217 -7 117 -6 881 -9 229 Cash flow from financing activities -21 009 -14 051 -42 039 -23 505 26 095 Cash flow for the period 9 184 -7 881 -1 103 23 795 20 127 Exchange rate differences in cash -572 -1 365 -4 029 -384 1 710 Cash at the beginning of the period 33 147 57 717 46 891 25 059 25 059 Cash at the end of the period 41 759 48 471 41 759 48 471 46 891
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TagMaster AB (556487-4534) Interim report January-September 2025 17 TRANSLATION Operating segment revenue and profit The gross margin and EBITDA are the performance measures that are reported to the highest executive decision-maker and that form the basis for allocating resources and evaluating performance in the Group. Financial income, financial expenses and income tax are managed at Group level. An analysis of the Group's revenue and results for each reportable operating segment follows below. The effects of recognising leases under IFRS 16 and capitalising development expenses in accordance with IAS 38 have not been allocated to the segments in the table below, included in the central column. 1 January 2025 - 30 September 2025 TagMaster Europe TagMaster USA Central Eliminations Total Group Revenue External revenue 220 318 119 278 - - 339 596 Cross-segment transactions 2 773 1 562 - -4 335 - 223 091 120 841 - -4 335 339 596 Gross profit 149 536 83 390 - - 232 926 Adjusted EBITDA 16 538 14 619 7 118 - 38 275 Items affecting comparability -4 159 - - - -4 159 EBITDA 12 379 14 619 7 118 - 34 116 Depreciations and amortizations -14 651 -11 140 - - -25 791 Operating profit/loss -2 272 3 479 7 118 - 8 325 Other segment information Gross margin, % 67,9 69,9 - - 68,6 Adjusted EBITDA margin, % 7,5 12,3 - - 11,3 EBITDA margin, % 5,6 12,3 - - 10,0 Items affecting comparability: Restructuring costs -4 159 - - - -4 159 Number of employees at the end of the period 114 36 - - 150 1 January 2024 - 30 September 2024 TagMaster Europe TagMaster USA Central Eliminations Total Group Revenue External revenue 145 276 141 442 - - 286 718 Cross-segment transactions 1 401 3 317 - -4 718 - 146 677 144 759 - -4 718 286 718 Gross profit 104 888 88 662 - - 193 550 Items affecting comparability - -2 763 - - -2 763 Adjusted gross profit 104 888 91 425 - - 196 313 Adjusted EBITDA -971 15 067 7 248 - 21 343 Items affecting comparability - -2 763 - - -2 763 EBITDA -971 12 304 7 248 - 18 579 Depreciations and amortizations -14 329 -10 194 - - -24 523 Operating profit/loss -15 300 2 110 7 248 - -5 944 Other segment information Gross margin, % 72,2 62,7 - - 67,5 Adjusted gross margin, % 72,2 64,6 - - 68,5 Adjusted EBITDA margin, % -0,7 10,7 - - 7,4 EBITDA margin, % -0,7 8,7 - - 6,5 Items affecting comparability: Difference between fair value and book value in RTMS PPA - -2 763 - - -2 763 Number of employees at the end of the period 83 39 122
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TagMaster AB (556487-4534) Interim report January-September 2025 18 TRANSLATION Summarized parent company income statement Amounts in TSEK 2025 Jan-Sept 2024 Jan-Sept 2024 Jan-Dec Net sales 80 968 78 863 113 762 Other operating income 2 823 926 2 903 83 791 79 789 116 665 Goods for resale and consumables -29 714 -30 773 -42 677 Other external expenses -18 899 -19 103 -30 949 Personnel expenses -21 767 -21 790 -29 236 Depreciation of property, plant and equipment and amortisation of intangible assets -10 -72 -75 Other operating expenses -4 027 -1 057 -1 160 Operating profit/loss 9 374 6 994 12 568 Result from group companies -32 186 4 337 4 390 Financial Net 1 539 -2 672 -5 859 Profit after financial items -21 273 8 659 11 099 Change in untaxed reserves - - -2 092 Tax on net profit for the year -1 865 -1 700 -1 288 Profit for the period * -23 138 6 959 7 719 *) Profit for the year accords with comprehensive income for the year. Summary parent company balance sheet Amounts in TSEK 2025-09-30 2024-09-30 2023-12-31 ASSETS Property, plant, and equipment 20 33 30 Financial assets 333 672 287 583 368 671 Receivables from Group companies 14 351 32 279 23 118 Inventories 18 502 19 787 17 401 Trade receivables 11 873 12 491 17 065 Receivables from Group companies 19 680 10 853 21 422 Other receivables 6 002 5 602 5 810 Cash and bank balances 2 534 3 024 11 505 TOTAL ASSETS 406 634 371 652 465 022 EQUITY AND LIABILITIES Equity 251 957 274 343 275 103 Provisions 1 565 1 534 1 565 Untaxed reserves 9 145 7 053 9 145 Non-current liabilities to credit institutions 39 526 26 067 57 543 Current liabilities to credit institutions 36 005 24 087 47 636 Trade payables 9 616 8 314 8 158 Liabilities to Group companies 31 645 19 206 39 207 Other liabilities 27 175 11 048 26 665 TOTAL EQUITY AND LIABILITIES 406 634 371 652 465 022
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TagMaster AB (556487-4534) Interim report January-September 2025 19 TRANSLATION Notes to the financial statements 1. Accounting policies This interim report is prepared in accordance with IAS 34 Interim Financial Reporting. The consolidated financial statements are prepared in accordance with the EU-approved International Financial Reporting Standards (IFRS). In addition, the Group applies the Swedish Annual Accounts Act and the Swedish Financial Reporting Council Recommendation. The Parent Company’s accounts have been prepared in accordance with the Annual Accounts Act and recommendation RFR 2 Accounting for Legal Entities. The accounting policies and calculation methods applied are in accordance with described in the 2024 Annual Report. Amendments and interpretations of existing standards that became effective in 2025 have not had any impact on the Group’s financial position or the financial statements. Disclosures in accordance with IAS 34 Interim Financial Reporting are provided both in these notes and elsewhere in the interim report. 2. Key estimates and assessments The preparation of financial reports requires management to make assessments and estimates and to make assumptions that affect the application of the Group's accounting principles. Actual results may deviate from these estimates and judgments. Key sources of uncertainty in estimates are described in note 3 in the 2024 Annual Report, page 50. 3. Financial risks and risk management Through its operations, the Group is exposed to various types of operational and financial risks. TagMaster’s significant risks and uncertainties are described in note 4 Financial risks and risk management in the 2024 Annual Report on pages 50–51 and in the Director’s report, pages 39–42. The risk assessment is in all material aspects unchanged. 4. Transactions with related parties After TagMaster's acquisition of 92,5 percent of the shares in Quercus, the previous owner retains 7,5 percent of the shares in the acquired company. The previous owner has assumed a role in the Group management and is therefore considered a related party under IAS 24. Transactions with the previous owner as of September 30, 2025, have been reported as follows: - Short term financial liability in Quercus: 3,4 MSEK - Additional purchase consideration recognized in TagMaster AB: 9,8 MSEK (nominal amount 1,0 MEUR) - Option to acquire 7,5 percent of the shares in Quercus recognized as a long term liability in TagMaster AB: 4,3 MSEK (nominal amount 445.9 TEUR) Other related-party transactions refer to transactions in the form of remuneration to senior executives, as stated on page 54-55 of the 2024 Annual Report. 5. Fair value of financial instruments The additional purchase consideration and option related to the acquisition of Quercus have been valued at fair value, in accordance with level 3. Other financial assets and liabilities are valued at amortized cost.
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TagMaster AB (556487-4534) Interim report January-September 2025 20 TRANSLATION 6. Breakdown of revenue from contracts with customers 1 January 2025 – 30 September 2025 1 January 2024 – 30 September 2024 TagMaster Europe TagMaster USA Total Group TagMaster Europe TagMaster USA Total Group Geographical region Sweden 5 353 - 5 353 2 221 - 2 221 EMEA 134 640 38 956 173 595 87 225 48 567 135 792 Asia Pacific 28 069 6 657 34 726 26 857 7 862 34 719 Americas 52 256 73 666 125 922 28 973 85 013 113 986 Total 220 318 119 279 339 597 145 276 141 442 286 718 Costumer category Traffic Solutions 171 043 119 278 290 321 109 381 141 442 250 823 Rail Solutions 49 275 - 49 275 35 895 - 35 895 Total 220 318 119 278 339 596 145 276 141 442 286 718 Time of revenue recognition At a particular time 209 746 115 388 325 134 135 217 137 926 273 143 Over time 10 572 3 891 14 463 10 059 3 516 13 575 Total 220 318 119 279 339 597 145 276 141 442 286 718 7. Intangible non-current assets Goodwill Goodwill associated with assets and liabilities Capitalized development expenditure Costumer relationships Trademarks Total Group At 1 January 2025 Cost of acquisition, opening balance 141 425 17 613 89 383 112 738 10 228 386 091 Accumulated amortization - - -61 690 -58 195 -484 -135 073 Carrying amount 141 425 17 613 27 690 54 543 9 744 251 018 1 January-30 September 2025 Carrying amount, opening balance 141 425 17 613 27 690 54 543 9 744 251 015 Business combinations 2 742 - - - - 2 742 Amortization for the period - - -6 029 -11 300 -249 -17 578 Translation difference for the period -12 345 -1 448 -1 695 -4 209 -1 387 -21 084 Carrying amount 131 822 16 165 19 966 39 034 8 108 215 095 At 30 September 2025 Cost 131 822 16 165 83 662 100 039 8 758 340 446 Accumulated amortization - - -63 693 -61 005 -650 -125 348 Carrying amount 131 822 16 165 19 966 39 034 8 108 215 095
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TagMaster AB (556487-4534) Interim report January-September 2025 21 TRANSLATION Group key ratios In thousands of SEK, unless otherwise stated 2025 July-Sept 2025 April-June 2025 Jan-March 2024 Oct-Dec 2024 July-Sept 2024 April-June 2024 Jan-March R12M Oct-Sept Full Year 2024 Net sales 112 381 127 172 100 044 133 727 84 812 102 907 99 000 473 323 420 445 Net sales growth, % 32,5 23,6 1,1 6,8 -2,4 4,8 4,9 14,9 3,9 Organic net sales change, % 0,1 -0,8 -20,5 1,4 -17,3 -9,6 -14,5 -2,2 -8,3 Gross profit 78 257 86 283 68 386 93 545 56 704 71 329 65 517 326 471 287 095 Gross margin, % 69,6 67,8 68,4 70,0 66,9 69,3 66,2 69,0 68,3 Adjusted gross margin, % 69,6 67,8 68,4 70,0 66,9 69,3 69,0 69,0 68,9 Adjusted EBITDA 18 605 21 800 -2 131 26 957 583 11 615 9 144 65 232 48 300 Adjusted EBITDA margin, % 16,6 17,1 -2,1 20,2 0,7 11,3 9,2 13,8 11,5 EBITDA 18 146 18 100 -2 131 24 351 583 11 615 6 381 58 467 42 930 EBITDA margin, % 16,1 14,2 -2,1 18,2 0,7 11,3 6,4 12,4 10,2 Adjusted EBITA 15 792 18 703 -5 354 23 625 -2 596 7 732 6 557 52 765 35 381 Adjusted EBITA margin, % 14,1 14,7 -5,4 17,7 -3,1 7,5 6,6 11,1 8,4 EBITA 15 332 15 004 -5 354 21 019 -2 596 7 732 3 794 46 000 30 011 EBITA margin % 13,6 11,8 -5,4 15,7 -3,1 7,5 3,8 9,7 7,1 Operating profit 9 926 9 565 -11 166 16 248 -6 618 2 481 -1 806 24 573 10 304 Operating margin, % 8,8 7,5 -11,2 12,2 -7,8 2,4 -1,8 5,2 2,5 Profit/loss before tax 9 349 7 818 -7 377 12 570 -6 955 1 177 -3 773 22 360 3 019 Net profit for the period 7 685 6 993 -7 567 14 075 -7 482 1 170 -3 101 21 187 4 632 Earnings per share before dilution, SEK 0,52 0,48 -0,52 0,96 -0,51 0,08 -0,21 1,45 0,32 Earnings per share after dilution, SEK 0,52 0,48 -0,52 0,96 -0,51 0,08 -0,21 1,45 0,32 Financial position Equity 255 956 251 609 251 421 286 251 254 406 270 505 271 144 255 956 286 251 Average equity 251 515 251 515 268 836 270 329 262 455 270 825 265 214 255 181 272 748 Equity ratio, % 53,9 51,1 51,2 51,4 61,4 60,9 60,6 53,9 51,4 Net debt (-) receivable 72 521 100 361 95 876 114 567 16 394 23 002 35 457 72 521 114 567 Return on equity, % 3,1 2,8 -2,8 5,2 -2,9 0,4 -1,2 8,3 1,7 Share data Net sales per share, SEK 7,67 8,68 6,83 9,13 5,79 7,03 6,76 32,31 28,70 Equity per share, SEK 17,47 17,18 17,16 19,54 17,37 18,47 18,51 17,47 19,54 Market price on closing day, SEK 15,90 13,50 13,90 13,25 15,60 20,00 23,30 13,50 13,25 Number of shares at end of period 14 648 14 648 14 648 14 648 14 648 14 648 14 648 14 648 14 648 Average number of shares, thousands 14 648 14 648 14 648 14 648 14 648 14 648 14 648 14 648 14 648 Personnel information Sales per employee 735 795 603 922 701 865 850 3 034 3 460 Average number of employees 153 160 166 145 121 119 117 156 122 Number of employees at end of period 150 156 164 168 122 120 118 150 168 1Number of shares, basic and diluted, is the same as there are no options or convertibles outstanding that may give rise to dilution.
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TagMaster AB (556487-4534) Interim report January-September 2025 22 TRANSLATION Key ratios Definition/calculation Purpose Gross profit Net sales minus costs of goods and services sold. The key ratio is used in other calculations. Gross margin Net sales less costs of goods and services sold (gross profit) as a percentage of net sales. The gross margin is used to measure production profitability. Adjusted gross profit Gross profit adjusted for items affecting comparability. The key ratio is used in other calculations. Adjusted gross margin Net sales less costs of goods and services sold (adjusted gross profit) as a percentage of net sales. The gross margin is used to measure production profitability in on-going operations. Operating margin Operating profit (EBIT) after depreciation, amortisation and impairments as a percentage of net sales. Operating margin is used to measure operating profitability. EBITDA Operating profit (EBIT) before depreciation, amortisation and impairments. EBITDA together with EBIT provides an overall picture of profit generated from operating activities. Items affecting comparability Income and expenses that are not expected to appear on a regular basis and impact comparability between periods The key ratio is used in other calculations. Adjusted EBITDA EBITDA adjusted for items affecting comparability The key ratio provides an overall picture of profit generated from operating activities. EBITA Operating Profit before depreciation, amortisation of goodwill and depreciation, amortisation of other intangible assets that arose in conjunction with company acquisitions. EBITA provides an overall picture of profit generated from operating activities. Organic change Change in net sales during the current period, excluding acquisitions and currency effects, in relation to net sales for the corresponding period of the preceding year. Net sales from acquired companies are included in the calculation of organic change as of the first day of the first month which falls 12 months after the date of acquisition The key ratio provides a picture of the business’s self-generated growth. Equity ratio Equity as a percentage of the balance sheet total. The key ratio indicates the proportion of assets financed by equity. Assets not financed by equity are financed by loans. Return on equity Profit for the year after tax attributable to the parent company’s shareholders divided by average equity. The key ratio shows the return the owners receive on their invested capital. Average equity Average equity is calculated as the average of the opening and closing balances. The key ratio is used in other calculations. Average number of employees The total of number of employees per month divided by the number of months in the period. The key ratio is used in other calculations. Sales per employee Sales divided by average number of employees. The key ratio is used to assess the efficiency of a company. Earnings per share, SEK Profit for the period attributable to the parent company's shareholders divided by the average number of shares. Earnings per share is used to determine the value of the company's outstanding shares. Average number of shares Weighted average number of shares at the end of the period. The key ratio is used in other calculations. Net debt Interest-bearing liabilities less cash and cash equivalents. The key ratio is used to track the company's indebtedness. Net debt/EBITDA Net debt at the end of the period divided by EBITDA, adjusted for rolling twelve months. Net debt/EBITDA provides an estimate of the company's ability to reduce its debt. It represents the number of years it would take to pay the debt if net debt and EBITDA are kept constant, without taking account of cash flows relating to interest, tax and investments.
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TagMaster AB (556487-4534) Interim report January-September 2025 23 TRANSLATION Financial performance measures not defined in accordance with IFRS TagMaster presents certain financial performance measures in the interim report that are not defined in accordance with IFRS or the Annual Accounts Act. The company considers that these measures provide valuable additional information to investors and the company’s management as they enable evaluation of the company’s performance. Since not all companies calculate financial performance measures in the same way, these are not always comparable with performance measures used by other companies. These financial performance measures should therefore not be seen as a substitute for measures defined in accordance with IFRS. Measures that are not defined in accordance with IFRS and reconciliation of the measures are presented below. 2025 Jan-Sept 2024 Jan-Sept R12M Oct-Sept 2024 Jan-Dec A Net sales 339 596 286 718 473 324 420 445 Change in inventories during manufacture and finished goods 1 333 1 016 282 -34 Goods for resale, raw materials and consumables -108 003 -94 184 -147 135 -133 316 B Gross profit 232 926 193 550 326 471 287 095 Items affecting comparability - 2 763 - 2 763 B.1 Adjusted gross profit 232 926 196 313 326 471 289 859 C Operating profit (EBIT) 8 325 -5 944 24 573 10 304 Amortisation of intangible assets related to acquisitions -16 656 -14 936 -21 427 -19 707 D EBITA 24 981 8 992 46 000 30 011 Depreciation of other intagible assets -922 -1 573 -1 445 -2 096 Depreciation of property, plant and equipment -8 213 -8 014 -11 022 -10 823 E EBITDA 34 116 18 579 58 467 42 930 Items affecting comparability 4 159 - 6 765 2 606 Total items affecting comparability 4 159 2 763 6 765 5 370 E Adjusted EBITDA 38 274 21 342 65 232 48 300 D.1 Adjusted EBITA 29 139 11 755 52 765 35 381 (B/A) Gross profit margin, % 68,6 67,5 69,0 68,3 (B.1/A) Adjusted gross profit margin, % 68,6 68,5 69,0 68,9 (C/A) EBIT margin, % 2,5 -2,1 5,2 2,5 (D.1/A) Adjusted EBITA margin, % 8,6 4,1 11,1 8,4 (D/A) EBITA margin, % 7,4 3,1 9,7 7,1 (E/A) EBITDA margin, % 10,0 6,5 12,4 10,2 (F/A) Adjusted EBITDA margin, % 11,3 7,4 13,8 11,5 Return on equity, % 2025 Jan-Sept 2024 Jan-Sept R12M Oct-Sept 2024 Jan-Dec (A) Net profit for the period 7 111 -9 413 21 187 4 663 (B) Opening equity for the period 286 251 259 285 254 406 259 285 (C) Closing equity for the period 255 956 254 406 255 956 286 251 D Average equity 271 103 256 845 255 181 272 768 (A)/(D) Return on equity, % 2,6 -3,7 8,3 1,7 Equity ratio, % 2025-09-30 2024-09-30 2025-09-30 2024-12-31 (A) Equity 255 956 285 251 255 956 285 251 (B) Balance sheet total 474 641 556 693 474 641 556 693 (A/B) Equity ratio, % 53,9 51,4 53,9 51,4 Net debt 2025-09-30 2024-09-30 2025-09-30 2024-12-31 Liabilities to credit institutions 83 834 50 154 83 834 125 200 Lease liabilities 12 896 14 711 12 896 18 628 Additional purchase consideration 17 549 - 17 549 17 630 Cash -41 758 -48 471 -41 758 -46 891 (A) Net debt (-) receivable 72 521 16 394 72 521 114 567 (A)/(E) Net debt/adjusted EBITDA, multiple (rolling 12 m) 1,1 2,4