Sitowise Group (SITOWS) Investor presentation summary

Goodwill impairment overview

• A goodwill impairment of €40 million will be recorded in Q4 2025, primarily related to underperforming Swedish acquisitions made between 2018-2022.

• The impairment affects both group goodwill and the value of Sitowise Sverige AB shares in the parent company's balance sheet.

• No impact on adjusted EBITA or cash flow, but EPS will decrease by approximately €1.12 and the group equity ratio will drop by about 10.2 percentage points.

• Parent company distributable funds and equity ratio will also decline, but dividend capacity remains largely unaffected.

• After impairment, group goodwill will be about €120 million, mainly from Infra, Buildings, and Digi businesses.

Swedish business area performance and outlook

• Swedish business area net sales were €19 million for the first nine months of 2025, with 220 experts across 12 locations.

• The business has underperformed versus initial expectations, with benefits from adjustments materializing slower than planned.

• Lower net sales and weak profitability led to reduced future cash flow assumptions in impairment testing.

• Despite current challenges, the Swedish business is expected to improve financial performance in 2026 and has strong long-term growth prospects.

Goodwill testing process and financial statement impacts

• Goodwill is tested annually or when impairment indicators arise, using a DCF model based on organic growth and conservative margin assumptions.

• Key assumptions include a 3% CAGR over five years, 2% terminal growth, and an 8.26% WACC.

• The impairment reduces group goodwill and Sitowise Sverige AB share value by about two-thirds.

• Group assets and equity will each decrease by €40 million, with the group equity ratio falling to 34.4%.

• Parent company equity and distributable funds will decline to approximately €68 million, with the equity ratio dropping to 43.4%.