Message from CEO

Sales for the full year 2025 totalled SEK 483 .3 million with adjusted EBITDA of SEK 79 .1 million, representing an adjusted EBITDA margin of 16 .4 per cent . We both improved gross margin and increased profitability compared to the previous year and ended the year in a strong financial position .

I am proud that we have been able to deliver these results at a time that in many ways should be difficult for us . Demand for our depends on long-term investment decisions and is therefore to a great extent affected by the uncertainty in the global economy that dominated the year as a whole . It is for that very reason that I see 2025 as clear evidence that our strategy and our way of building the company work even when conditions are less in our favour.

A balanced business that builds resilience

Our activities extend over different geographies, customer seg-ments and solution areas, making us less vulnerable to temporary fluctuations in individual markets . The combination of Traffic Solutions, with a rising share of B2B business, and Rail Solutions provides us with a stable base income while allowing us to partici-pate in larger projects when the readiness to invest improves.

A key contributor to our performance was the acquisition of Quer-cus Technologies, which was concluded at year-end 2024 . In 2025, Quercus made positive contributions to growth, profitability and bal-ance in the business . The acquisition has strengthened our offering in parking and access digitalisation, broadened our customer base and made us less dependent on government decisions with long lead times . To me, this serves as a good example of how our acquisi-tion strategy, allied with organic growth, works in practice.

Innovation with AI First strategy

Innovation forms a key element of TagMaster’s business and is vital to continued growth and profitability . But innovation and development are never an end in themselves . To us, the point of innovation is to solve real problems and create real value for our customers and society at large .

During the year, we continued to invest systematically in product development, with a particular focus on software,

AI and data-driven solutions . Our explicit AI First strategy is today an integral part of the organisation as a whole, filtering through to every level of the Company – development activities, internal processes and marketing . With a strong development team and leading-edge expertise in AI, image analysis and sensor technologies, we are well positioned to find solutions to our customers’ problems .

During the year, our investments in product development totalled around 15 per cent of sales . This investment, based on the work of 50 development engineers, of whom around 30 focus on onward development of AI-based video solutions, allows us to develop industry-leading solutions .

Our MultiSens Intersection multi-sensor platform, launched during the year, is a clear example of how our technological breadth opens up new opportunities . By combining video, AI and wireless sensors into a common platform, we are consolidating our position in traffic detection and intelligent transport systems and meeting a clear demand for more comprehensive and data-driven solutions .

Technology that makes a difference

During the year, our automatic incident detection system helped prevent a serious incident in the Vuache tunnel, France . Thanks to early detection, the operator was able to close tunnel before a fire broke out, effectively averting a situation that could have had very serious consequences . To me, this is strong evidence of the benefit to society our solutions create . Our products and systems

for digitalisation of traffic flows not only help create safer traffic environments, more efficient traffic flows, reduced environmental impact but also, in some cases, save lives .

Our point of departure is always that technology is ultimately about people, and our solutions can make a life-changing differ-ence . It is a responsibility we take very seriously .

Profitable growth with discipline

In 2025, as in previous years, we maintained a clear focus on cost control and operational efficiency in parallel with innovation and growth . A Group-wide efficiency programme has been implemented and is now delivering enduring cost savings of more than

SEK 12 million annually . We also continued the work of reducing working capital and strengthening cash flow .

The increasingly large share of software and data-based solutions in our offering are part of the reason for improved gross margins and increased scalability . Together with our outsourced production model and clear priorities, this is establishing conditions favouring continued profitable growth .

However, in addition to generating better efficiency, profitability and growth in our existing business, we continue to actively seek out potential acquisition targets in the markets where we operate . First and foremost, we look at complementary acquisitions in the markets where we are already established, or at players with tech-nological solutions that complement ours .

Over the past ten years, we have completed a total of nine acquisitions and have integrated the companies concerned into the Group . We have developed a successful acquisition and integration model and part of our continued growth will be through acquisi-tions . With greater financial and operational capacity, a broader and even more innovative offering, combined with geographical expan-sion, we can gain greater market share in a rapidly growing market .

Looking ahead

Uncertainty in the world around us persists and we enter 2026 with a realistic view of the challenges ahead . At the same time, the

long-term drivers of our business are strong, including urbanisation, increased demands for road safety, digitalisation and streamlin-

ing of infrastructure and traffic flows, and the need to reduce the climate impact of the transport sector .

In this world, we are strongly positioned with our offering addressing some of the very biggest challenges that face the trans-port systems of the world – challenges that have to be addressed .

This, alongside our strong balance sheet, high equity ratio, a broader and more data-driven offering and a proven acquisition strategy, gives me great confidence going forward . Our focus remains steady– to continue to develop TagMaster step by step as a stable, growing, innovative and profitable technology company in intelligent transport systems .

I would like to conclude by extending my most sincere thanks to all the employees of the TagMaster Group for your commitment and professionalism during the year . I would also like to thank our customers, partners and shareholders for your continued trust.