Slides
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Building resilience & readiness where it matters most Ticker code - 4C November 4, 2025 4C Group AB, Interim Report Q3 2025 Presented by: Jonas Jonsson - CEO Veronica Wallin - CFO
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Sharper focus to drive profitability and scalability 4C Key updates Strong momentum in defence and training segments Softer quarter, solid progress across core markets
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4C Group in brief (mSEK) Financials Q3 2025 Q3 2024 Growth (%) Q3-25 LTM Q3-24 LTM Growth (%) Net sales 72.7 93.8 -22% 352.3 337.7 +4% Software revenue 67% 77% 64% 66% EBIT -11.7 16.3 11.8 -15.8 EBIT-margin (%) -16% 17% 3% -23% Ticker code - 4C 72.7 Net sales 2025 Q3 352 LTM sales 2025 Q3 14% Net sales CAGR 2020-2025 Q3 64% Software Rev Q3 LTM 207 ARR 2025 Q3 “The third quarter was slower than expected in the US, but we continued to strengthen our position across core markets and delivery on key projects.”
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Lower net sales YoY due to delivery timing; strengthened defense relations through renewed and expanded agreement with key strategic customer. Broadened public sector collaborations in maritime protection and counterterrorism; Australian team reinforced with two senior software developers to support growth. EMEA Seasonally lower activity due to customer holidays; new NATO capability delivered and field-tested, resulting in ~SEK 15 million in additional call-offs for 2025–2026. Exonaut established as NATO’s standard for capability evaluation; successful testing with three additional European NATO nations and growing demand for training and exercises. APAC Segment highlights
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Stable performance during the quarter; some larger projects temporarily affected by resource constraints as customers build internal preparedness functions. Strong margins and solid order book maintained; team plays key role supporting clients with practical expertise alongside our software solutions. Key new projects sold within Total Defence space. North America Continued focus on direct sales to U.S. Department of Defense; strong customer interest with new contracts signed and deliveries initiated. Deal activity temporarily impacted by market uncertainty and the ongoing U.S. budget shutdown; strategy unchanged and recovery expected once conditions normalize. Expert Services Segment highlights
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13 14 15 15 17 17 19 21 25 28 28 31 -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 0 50 100 150 200 250 300 350 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Net sales Defence, LTM (mSEK) Defence Customers Defence Net sales growth Defence (%) -6% 5% 1% 41% 67% 57% 60% 27% 15% 9% -7% 0% -8% -16% 7% 3% 13% 27% 4% -35% -15% 5% 25% 45% 65% -50 0 50 100 150 200 250 300 350 400 Net sales per segment & adjusted EBIT %, LTM (mSEK) EMEA Software APAC Software North America Software Global Expert Services Total net sales Net sales growth (%) Adjusted EBIT/quarter (%) Total software revenue (%) Net sales per segment, LTM Net sales LTM: SEK 352m (338), 4% growth Defence share of LTM net sales: 77% (72%) Adjusted EBIT margin LTM: 3% (-5%) 12%
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Contract assets have grown significantly, reflecting strong delivery under ongoing customer agreements. These assets will convert into cash progressively as invoicing milestones are reached. The development indicates robust operational activity and future cash inflows, strengthening our financial outlook. -150 -100 -50 0 50 100 150 200 250 300 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Contract Assets Net working capital Cash & cash equivalents Net debt Cash & Contract assets
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142 115 114 200 320 298 281 0 50 100 150 200 250 300 350 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Order book end of quarter, mSEK Orderbook 0 100 200 300 400 500 600 0 50 100 150 200 250 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Order intake LTM and per quarter, mSEK Total Order Intake Total Order Intake LTM 331 Total order intake LTM (orange line) increased sharply from SEK 331m in Q3’24 to SEK 510m in Q3’25, an increase of 54% The order book reached SEK 281m in Q3’25, representing a 146% increase compared to SEK 114m in Q3’24 510 Order intake & Order book
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19 20 17 18 15 21 23 24 0 100 200 300 400 500 600 700 800 900 1,000 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 LTM | Defence Software, mSEK Average ACV, LTM No. Of new Software Contracts, LTM 17 15 17 16 18 15 15 19 0 200 400 600 800 1,000 0.0 0.2 0.4 0.6 0.8 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 LTM | Resilience Software, mSEK Average ACV, LTM No. Of new Software Contracts, LTM 93 94 99 107 97 100 100 107 108 110 110 119 121 130 152 164 181 181 207 0 50 100 150 200 250 ARR, mSEK Defence Resilience 0.4 0.6 8,08.3 ARR & Average annual deal value The Defence segment remains the dominant contributor to ARR and is the primary growth driver during the quarter (77%) ARR has increased to SEK 207m in Q3 2025, up from SEK 181m in the previous two quarters, demonstrating solid progress and a strong foundation for continued growth in the coming periods.
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Strategic Update
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New strategic direction in our Resilience product domain. High investment not yielding the results required. Market uptake slower than expected despite indications on increased interest. Low-cost alternatives proved tough competitors. Strategic update
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Moving forward with reduced scope. Streamlined operations with staff reductions and other external costs reducing OPEX by SEK 40 million in annual savings. No impact on current Resilience revenue expected. Additional staff reallocated towards Defence and training products Continued delivery on existing contracts and selectively delivering on inbound sales. Strategic update
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Focus our efforts on core markets. Defense and Total Defense offering. Delivering Readiness and Resilience to Governments, Armed forces and Corporations around the world. Stronger foundation for scalable, long-term growth Strategic update
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Q&A
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