October-December 2025

• Net sales increased during the quarter by 7,5 % to 143,7 MSEK (133,7). The organic and currency adjusted growth amounted to -0,7 %.
• Adjusted EBITDA increased during the quarter by 51,3 % to 40,8 MSEK (27,0) corresponding to an adjusted EBITDA margin of 28,4 % (20,2).
• Operating profit/loss was 22,4 MSEK (16,2), corresponding to an operating margin of 15,6 % (12,2).
• Profit/loss for the quarter was 15,4 MSEK (14,1).
• Result per share basic and diluted was 1,05 SEK (0,96).
• Cash flow from operating activities for the period was 15,8 MSEK (11,0).

January-December 2025

• Net sales increased during the year by 14,9 % to 483,3 MSEK (420,4). The currency adjusted growth amounted to -3,4 %.
• Adjusted EBITDA increased during the year by 63,7 % to 79,0 MSEK (48,3), corresponding to an adjusted EBITDA margin of 16,4 % (11,5).
• Operating profit/loss was 30,7 MSEK (10,3) which corresponds to an operating margin of 6,4 % (2,5).
• Profit/loss for the period was 22,5 MSEK (4,7).
• Result per share, basic and diluted was 1,54 SEK (0,32).
• Cash flow from operating activities for the period was 58,7 MSEK (58,6).
• The board does not propose dividends for 2025.

Amounts in TSEK	2025 Oct-Dec	2024 Oct-Dec	2025 Full Year	2024 Full Year
Net sales	143 696	133 727	483 292	420 445
Net sales growth, %	7,5	6,8	14,9	3,9
Gross margin, %	72,6	70,0	69,8	68,3
Adjusted gross margin, %	72,6	70,0	69,8	68,9
Adjusted EBITDA	40 776	26 957	79 050	48 300
Adjusted EBITDA margin, %	28,4	20,2	16,4	11,5
EBITDA	40 776	24 351	74 890	42 930
EBITDA margin, %	28,4	18,2	15,5	10,2
Equity ratio, %	–	–	55,3	51,4
Cash flow from operating activities, MSEK	15,8	11,0	58,7	58,6
Net debt/EBITDA, R12M	–	–	0,9	2,4
Number of employees at end of period	–	–	151	168

Comments by the CEO

The final quarter of 2025 is the strongest single quarter for the TagMaster Group to date and demonstrates that our strategy of pursuing a combination of organic and acquired growth is successful. With growth of 7.5 percent compared with the strong fourth quarter of 2024, we delivered record revenue of SEK 143.7 million and profitability of 28.4 percent in adjusted EBITDA margin, corresponding to an adjusted EBITDA result of SEK 40.8 million. This is a very strong performance given that the market in which we operate remained cautious during the quarter. For the full year 2025, total revenue amounted to SEK 483.3 million, with an adjusted EBITDA result of SEK 79.1 million.

Demand for our solutions depends on long-term investment decisions and is therefore largely affected by the uncertainty in the global economy, which also characterized the fourth quarter. A contributing factor to our increased revenue and record-strong profitability despite this is that we have significantly strengthened our offering in parking and access digitalization, while also increasing the share of our sales to corporate customers (B2B). This complements the rest of our business, which is predominantly directed toward the public sector (B2G), thereby making us somewhat less sensitive to uncertainties that cause delays in government decision-making. This is largely the result of our recent acquisition of the Spanish company Quercus Technologies, which was completed during the fourth quarter of 2024. This positions us as a stable and profitable growth company.

Other parts of the business are also performing strongly, including our French subsidiary Citilog, which continues to successfully market and sell its upgraded Automatic Incident Detection (AID) system to both new and existing customers. During the quarter, we announced a major order of just under SEK 9 million for the North East Link tunnel project in Melbourne, Australia. Our AID products consist primarily of software deliveries, which has had a positive impact on both gross margin and EBITDA.

Our development of new applications and other technological advances 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, approximately 30 of whom are focused on the further development of AI-based video solutions, we are developing solutions that are at the forefront of the industry. During the fourth quarter, investment in product development amounted to approximately 14 percent of the Group’s total revenue.

Total sales in the fourth quarter amounted to SEK 143.7 million, representing an increase of 7.5 percent compared with the same period in 2024. This is the highest revenue recorded for a single quarter to date. Organic revenue change for the quarter, adjusted for currency effects and acquisitions, amounted to negative SEK 0.9 million, corresponding to a decrease of 0.7 percent. The Group’s total expenses decreased by approximately SEK 7 million compared with the same period last year, explained by a Group-wide efficiency program implemented earlier in the year, resulting in annual cost savings of just over SEK 12 million.

The Group’s gross margin for the quarter amounted to 72.6 percent (70.0), with an adjusted EBITDA result of SEK 40.8 million, corresponding to an adjusted EBITDA margin of 28.4 percent. The gross margin was positively impacted by a favourable product mix, with a higher share of high-margin products such as software solutions. Cash flow from operating activities amounted to SEK 15.8 million, and the Group’s solvency ratio was 55.3 percent at the end of the period. Efforts to reduce working capital remain a priority. Sequentially, inventory for comparable units decreased by approximately 16 percent, and compared with the corresponding quarter of the previous year, inventory declined by just under 11 percent.

Sales from the Traffic Solutions business in the fourth quarter amounted to SEK 123.3 million, representing an increase of approximately 11 percent compared with the corresponding quarter in 2024. During the quarter, Traffic Solutions accounted for 86 percent of total sales, while Rail Solutions accounted for 14 percent.

For the full year 2025, sales amounted to SEK 483.3 million, with an adjusted EBITDA result of SEK 79.1 million, corresponding to an adjusted EBITDA margin of 16.4 percent. The Group’s gross margin for the full year amounted to 69.8 percent, compared with 68.9 percent in 2024.

Overall, we are very satisfied with 2025, particularly given that the market in which we operate has been cautious, with long and slow decision-making processes. I can also conclude that TagMaster is well positioned to contribute solutions to some of the major challenges facing the world’s transport systems, such as traffic congestion in densely populated areas, improved safety, and reduced traffic-related emissions. As a result, demand for our solutions is increasing, and we remain firmly committed to further strengthening TagMaster’s position, despite the uncertainty surrounding tariffs, geopolitics, and regulatory frameworks, which has contributed to a cautious market environment.

Jonas Svensson, CEO

Auditor’s review

This report has not been reviewed by the company auditor.

Financial calendar

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 year’s Nomination Committee consists of the following members:
Anders Bladh (own and related company holdings)
Gert Sviberg (own and related company holdings, board member of TagMaster AB)
Tomas Brunberg (related company holdings)
Didrik Hamilton (Hamilton/Lewenhaupt-spheres)
Bernt Ingman (chairman of the TagMaster board)

Anders Bladh has been appointed chairman of the Nomination Committee.

The Nomination Committee shall complete the tasks that pertains to it under the Swedish Code of Corporate Governance, which means that it will present the following proposals to the annual general meeting 2026: (a) proposal for board of directors, (b) proposal for auditor, (c) proposal for chairman of the board, (d) proposal for director’s fees to each of the directors and the chair and remuneration for committee work, (e) proposal for remuneration to the auditor, (f) proposal for chairman of the annual general meeting, (g) principles for appointment of the nomination committee and (h) to the extent deemed necessary, proposal regarding amendments of the current instruction for the Nomination Committee.

The Annual General Meeting will be held on April 27, 2026, at Kronborgsgränd 11, konferensrum Nobel, 164 46, Kista.

Shareholders who wish to contact the Nomination Committee to propose candidates for Nomination as members of the TagMaster Board of Directors should contact Anders Bladh, telephone: +46 (0) 70 666 8045 or e-mail: andersbladh@outlook.com or aktie@tagmaster.com

The Nomination Committee proposes the re-election of board members Bernt Ingman, Gert Sviberg, Juan Vallejo and the new election of Marie Ygge as board member. The Nomination Committee further proposes the re-election of Bernt Ingman as Chairman of the Board. Liselott Lading has declined re-election at the 2025 Annual General Meeting. The Nomination Committee thanks Liselott Lading for her contribution to the board work for TagMaster.

Marie Ygge, born 1958. Marie has extensive experience in senior positions in the IT industry from both Microsoft (2005-2017) and IBM (1985-2005). During these years, Marie has held a number of management positions in Sweden, responsible for sales to the public sector, large companies and small and medium-sized customers. Marie’s most recent role was as Head of Business Development for the Public Sector within Microsoft EMEA (2014-2017). Marie has a Master of Science in Engineering from the Royal Institute of Technology and runs her own consulting business. Marie is a board member of Alcadon Group AB and TCO Development AB. She currently does not own any shares in TagMaster and is both independent in relation to the company and its management and also independent in relation to the company’s major shareholders. The Nomination Committee assesses that her experience and expertise complement the overall expertise of the board.

The Nomination Committee of TagMaster consists of the Nomination Committee Chairman Anders Bladh (own and related company holdings), Gert Sviberg (own and related company holdings, member of the TagMaster Board of Directors), Tomas Brunberg (related company) and Bernt Ingman (Chairman of the TagMaster Board of Directors). Didrik Hamilton has chosen to resign from the Nomination Committee at his own request. The Nomination Committee’s proposal for the above decision was made prior to Didrik Hamilton’s decision to resign from the Nomination Committee.

The nomination committee’s other proposals will be presented in the notice of the Annual General Meeting and will be available on TagMaster’s website. The Annual General Meeting will be held on April 24, 2025 at 3:00 p.m.

• Net sales increased during the quarter by 6,8 % to 133,7 MSEK (125,3). The organic and currency adjusted growth amounted to 1,4%.
• Adjusted EBITDA increased during the quarter by 19,0% and amounted to 27,0 MSEK (22,7) corresponding to an adjusted EBITDA margin by 20,2 % (18,1).
• Operating profit was 16,4 MSEK (7,3), corresponding to an operating margin of 12,2 % (5,8).
• Profit/loss for the quarter was 14,0 MSEK (6,8).
• Result per share basic and diluted was 0,96 SEK (0,47).
• Cash flow from operating activities for the period was 11,0 MSEK (3,4).
• On November 28, 2024 TagMaster acquired 92,5 percent of the shares in the Spanish company Quercus Technologies S.L (Quercus).

January-December 2024

• Net sales increased during the year by 3,9% to 420,4 MSEK (404,7). The currency adjusted growth amounted to -8,3 percent.
• Adjusted EBITDA decreased during the year by 15,5% to 48,3 MSEK (57,2), corresponding to an adjusted EBITDA margin by 11,5% (14,1).
• Operating profit/loss was 10,3 MSEK (15,3), which correspond to operating margin of 2,5% (3,8).
• Profit/loss for the year was 4,7 MSEK (13,7).
• Result per share, basic and diluted was 0,32 SEK (0,93).
• Cash flow from operating activities for the year was 58,6 MSEK (28,5).
• The board does not propose dividends for 2024.

Amounts in TSEK	2024 Oct-Dec	2023 Oct-Dec	2024 Full Year	2023 Full Year
Net sales	133 727	125 260	420 445	404 711
Net sales growth, %	6,8	19,7	3,9	12,9
Gross margin, %	70,0	61,4	68,3	68,5
Adjusted gross margin, %	70,0	66,7	68,9	70,1
Adjusted EBITDA	26 957	22 662	48 300	57 174
Adjusted EBITDA margin, %	20,2	18,1	11,5	14,1
EBITDA	24 351	16 029	42 930	48 296
EBITDA margin, %	18,2	12,8	10,2	11,9
Equity ratio, %	–	–	51.4	60,5
Cash flow from operating activities, MSEK	11,0	3,4	58,6	28,5
Net debt/EBITDA, R12M	–	–	2,4	0,9
Number of employees at end of period	–	–	168	115

Comments by the CEO

The final quarter of 2024 was very strong for us, and despite a continued cautious market, we were able to deliver record figures in both revenue and profitability. Revenue grew by 6.8 percent compared to the strong final quarter of 2023, and the adjusted EBITDA result reached 27 million SEK, corresponding to a margin of just over 20 percent. This is the best individual quarter to date and demonstrates that our strategy of focusing on a combination of organic and acquired growth is successful.

At the end of the quarter, we acquired Quercus Technologies, a company that develops and manufactures advanced digital solutions for the parking industry based on AI-driven video analysis. Based in Reus, Spain, Quercus has installations in over 100 countries worldwide. Through this acquisition, TagMaster strengthens its already robust offering within parking and access digitization, while also increasing our sales to corporate customers (B2B), complementing the group’s current business, which is predominantly focused on the public sector (B2G).

With Quercus as a part of the group, combined with the strong finish to last year, we have entered the new year with expectations of both increased revenue growth and stronger results. In addition to the advantages I mentioned above, the acquisition provides us with significant opportunities for organic growth through increased cross-selling. Quercus has a strong presence in Germany, Spain, and Australia, while our main strengths have previously been in the USA, the UK, and France. Together, we can sell our respective solutions in new markets and offer a broader range of products and AI-driven solutions to our global customers.

We also see that our second-to-last acquisition, the radar business (RTMS) that we acquired from the American company Image Sensing Systems (ISS) during the third quarter of 2023, continued to perform well also in the fourth quarter, with a growth of approximately 26 percent compared to the same period in 2023. Through this acquisition, we have strengthened our offering and can deliver both sensor solutions for ground installations and a series of high-performance radar-based sensor solutions for above-ground installations.

Looking ahead, I can state that TagMaster is well positioned to contribute to solutions for some of the major challenges facing the world’s transportation systems. These challenges include solving traffic problems such as congestion in densely populated areas worldwide, increasing traffic safety, preventing accidents, and reducing emissions from traffic. This means that demand for our solutions will increase as necessary decisions on infrastructure investments are made across large parts of the world.

Our leading technical expertise in all relevant technologies in the field positions us well to meet the growing demand for multisensor solutions. Following the acquisition of Quercus, the group now has a total of 60 development engineers, 30 of whom focus on further developing AI-based video solutions. We therefore see significant potential in continuing to develop both new products and our sales, both in the U.S. market and through our global partner network. During the quarter, we continued to invest in the sales organization and further integration of our operations with the aim of better scaling our commercial offering.

To leverage on our leading technical expertise and drive organic growth, significant investments are being made in product development. Therefore, in the fourth quarter, the investment in product development amounted to approximately 15 percent of the group’s revenue.

The group’s sales for the fourth quarter amounted to SEK 133.7 million, an increase of 6.8 percent compared to the same period in 2023. The organic revenue change for the quarter, adjusted for currency effects and acquisitions, amounted to SEK 1.7 million, corresponding to an increase of 1.4 percent. Costs were higher compared to the fourth quarter of 2023, as the newly acquired Quercus is included from December, along with higher personnel costs related to our investments in increased sales resources.

For the full year 2024, revenue totaled SEK 420.4 million, an increase of 3.9 percent compared to 2023. The organic and currency-adjusted change amounted to a decrease of 8.3 percent. Adjusted EBITDA for the full year was SEK 48.3 million, corresponding to a margin of 11.5 percent, which is 2.6 percentage points lower than in 2023. Our Traffic Solutions business in the fourth quarter amounted to SEK 110.9 million, an increase of approximately 6 percent compared to the same quarter in 2023. During the quarter, Traffic Solutions accounted for 83 percent of sales, while Rail Solutions accounted for 17 percent.

The adjusted gross margin at group level for the quarter was 70 percent (66.7), with an adjusted EBITDA result of SEK 26.9 million, corresponding to an adjusted EBITDA margin of 20.2 percent. Cash flow from operating activities amounted to SEK 11 million, and the group’s solvency ratio was 51.3 percent at the end of the period.

The focus on reducing working capital, primarily inventory levels that increased during previous component shortages, continues to be a focus. Sequentially, inventory has decreased by just under 7 percent, and compared to the same quarter last year, it has decreased by just over 29 percent.

TagMaster is currently well positioned in a market with strong long-term growth prospects and good profitability, and we are committed to continuing to make TagMaster a leading company in Intelligent Transportation Solutions (ITS).

Jonas Svensson, CEO

Auditor’s review

This report has not been reviewed by the company auditor.

Financial calendar

March 27, 2025: Annual Report 2024 available on web site
April 24, 2025: Annual general meeting, Kista
April 24, 2025: Interim report first quarter 2025
July 18, 2025: Interim report second quarter 2025
October 23, 2025: Interim report third quarter 2025
February 5, 2026: Earnings release 2025

This report and previous reports and press releases are found at the company home page www.tagmaster.com

Quercus Technologies

Quercus is an international company with offices in Spain (HQ), France, and the US who has successfully delivered market leading smart mobility and access control solutions to the parking industry for 25 years.

The company designs and manufactures advanced video analytics solutions for parking access control and parking information systems that maximize the efficiency of parking facilities and improve the customers’ parking experience. With installations worldwide in more than 60 airports, 80 shopping centers, hotels, universities, public institutions, hospitals, condominiums and offices, Quercus has established itself as a technology leader for the parking industry with a reputation of quality, reliability and superior customer support.

The company is led by industry veterans, has 45 employees and a strong R&D department with 15 engineers with expertise in video analytics, AI, software, and hardware development. Sales for the nine first months of 2024 were approx. € 6 million with an EBITDA margin at same level as for TagMaster.

Background and acquisition rationale

TagMaster’s strategy of focusing on the market for advanced sensing solutions for transportation has been validated over the past year by the continued growth in that market driven by the challenges cities face worldwide of rapid population growth, rising congestion, and declining air quality. Computer vision systems combined with AI and Deep Learning are enabling a new generation of Intelligent Transportation Systems with increased accuracy of detection and identification of vehicles, pedestrians and bicycles to help address these challenges.

The acquisition of Quercus gives TagMaster access to deep knowledge in computer vision and state-of-the-art AI technologies and will enhance the group’s leadership in intelligent sensing for both traffic and parking applications. Following the acquisition, the group will have a total of 60 development engineers, 30 of which are dedicated to further developing AI-based and computer vision solutions.
 
” This is a highly strategic acquisition for us. In addition to making us a leader in parking solutions as well as increasing our share of B2B business, it strengthens us technologically in AI and video analytics and opens new geographical markets. Quercus is strong in Germany, Spain, Australia with some business in the USA, while our main strengths lie in the USA, UK, and France. Together, we gain new abilities to sell our respective solutions in new markets and to offer a broader range of products and AI enabled solutions to our global customers,” says Jonas Svensson, CEO, TagMaster.

Commenting on the acquisition, Jordi Moragas, CEO, Quercus Technologies, said:” We are very pleased to be joining the TagMaster Group. We recognize and welcome the strength that the union will bring to both brands and the synergies that are immediately apparent with the other TagMaster companies.”

Purchase price

The purchase price upon close of the transaction is € 5,5 million. In addition, a deferred purchase price of approx. € 0,45 million will be paid in 2028. Finally, a performance-based additional payment (earn-out) of a maximum of € 1 million will be paid in 2028 conditional on improved sales. The acquisition is an all-cash transaction funded by cash at hand and a new bank debt facility of € 4 million.

The combined entity – TagMaster Group – will have an enhanced scale and reach, for nine months period with 2024 proforma sales and adjusted EBITDA of approx. SEK 355 million and SEK 27 million respectively.

The transaction closed today.

July-September 2024

• Net sales decreased during the quarter by 2,4 % to 84,8 MSEK (86,9). The organic and currency adjusted growth amounted to -17,3%.
• Adjusted EBITDA decreased during the quarter by 94,7% and amounted to 0,6 MSEK (11,0) corresponding to an adjusted EBITDA margin by 0,7 % (12,6).
• Operating profit was -6,6 MSEK (0,2), corresponding to an operating margin of -7,8 % (0,3).
• Profit/loss for the quarter was -7,5 MSEK (0,2).
• Result per share basic and diluted was -0,51 SEK (0,01).
• Cash flow from operating activities for the period was 6,4 MSEK (4,1).

January-September 2024

• Net sales increased during the nine-month period by 2,6% to 286,7 MSEK (279,5). The currency adjusted growth amounted to -14,0 percent.
• Adjusted EBITDA decreased during the period by 38,2% to 21,3 MSEK (34,5), corresponding to an adjusted EBITDA margin by 7,4% (12,3).
• Operating profit/loss was -5,9 MSEK (8,0) which correspond to operating margin of -2,0% (2,8).
• Profit/loss for the period was -9,4 MSEK (6,8).
• Result per share, basic and diluted was -0,64 SEK (0,47).
• Cash flow from operating activities for the period was 47,6 MSEK (25,1).

Amounts in TSEK	2024 July-Sept	2023 July-Sept	2024 Jan-Sept	2023 Jan-Sept	R12M Oct-Sept	2023 Full Year
Net sales	84 812	86 896	286 718	279 451	411 978	404 711
Net sales growth, %	-2,4	0,4	2,6	10,0	7,3	12,9
Gross margin, %	66,9	73,1	67,5	71,6	65,7	68,5
Adjusted gross margin, %	66,9	75,7	68,5	72,4	67,4	70,1
Adjusted EBITDA	583	10 979	21 343	34 512	44 006	57 174
Adjusted EBITDA margin, %	0,7	12,6	7,4	12,3	10,7	14,1
EBITDA	583	8 734	18 579	32 266	34 609	48 296
EBITDA margin, %	0,7	10,1	6,5	11,5	8,4	11,9
Equity ratio, %	61,4	59,9	–	–	61,4	60,5
Cash flow from operating activities, MSEK	6,4	4,1	47,6	25,1	19,3	28,5
Net debt/EBITDA, R12M	–	–	–	–	0,4	0,9
Number of employees at end of period	122	118	–	–	122	115

Comments by the CEO

The third quarter of the year was, as expected, affected by the weaker demand situation that we have observed over the past nine months, primarily for our European segment. Demand is characterized by long-term investment decisions, often at the governmental level and is impacted by the weaker economy in several geographic markets, and means that our customers postpone their investments decision, mainly in our case the United Kingdom. I assess that the downturn is temporary, and at the same time, I can confirm that despite the downturn, we are maintaining our market share. We also show strength by reporting a good positive cash flow and resilient gross margin during the period.

Looking ahead, I can state that TagMaster is well-positioned to contribute to solutions for some of the major challenges facing the world’s transportation systems. These include solving traffic problems such as congestion in densely populated areas around the world, increasing traffic safety and preventing accidents, as well as reducing emissions from traffic. This means that demand for our solutions will increase as necessary decisions on infrastructure investments are made across large parts of the world.

Our leading technical expertise in all relevant technologies in the field makes us well positioned to meet the growing demand for multi-sensor solutions. We therefore see great potential in continuing to develop both new products and our sales, both in the U.S. market and through our global partner network. During the quarter, we continued to invest in the sales organization and further integrate our operations with the aim of better scaling up our commercial offering.

To leverage our leading technical expertise and thereby drive organic growth, significant investments are being made in product development. During the third quarter, the investment in product development amounted to approximately 15 percent of the group’s revenue.

We are already seeing how AI tools have helped us streamline our development work and thereby improve our products and solutions, primarily through support in coding and software development. We also greatly benefit from AI in strengthening and optimizing our sales and marketing efforts. Many of our products have been AI-based for many years, allowing us to quickly take advantage of the advancements happening in the AI field.

Our latest acquisition of the radar business (RTMS) from the U.S. company Image Sensing Systems (ISS) has developed very well in a short time. Through the acquisition, which was completed during the third quarter of 2023, we have strengthened our offering and can now provide both sensor solutions for ground installations and a series of high-performance radar-based sensor solutions for above-ground installations. Already during the final quarter of 2023, the acquisition performed well, which was again confirmed during the past quarter when RTMS sales grew by approximately 170 percent compared to the same period last year. Our Parking and access business has also continued to develop well during the quarter.

The group’s sales for the third quarter amounted to SEK 84.8 million, a decrease of 2.4 percent compared to the same period in 2023. The organic revenue change for the quarter, adjusted for currency effects and acquisitions, was SEK
-15.0 million, corresponding to a decrease of 17.3 percent. Costs were at the same level as in the third quarter 2023.

Our Traffic Solutions business amounted to SEK 76.9 million, a marginal decrease of approximately 1 percent compared to the same quarter in 2023. During the quarter, Traffic Solutions accounted for 91 percent of sales, while Rail Solutions accounted for 9 percent. We continued our strategic focus during the quarter by further investing in the Traffic Solutions business, which includes both organic growth and growth through acquisitions.

The adjusted gross margin at group level was 66.9 percent (73.1 percent), with an adjusted EBITDA result of SEK 0.6 million, corresponding to an adjusted EBITDA margin of 0.7 percent. Cash flow from operating activities amounted to SEK 6.4 million, and the group’s solvency ratio was 61.4 percent at the end of the period.

The focus on reducing working capital, primarily inventory levels that increased during the previous component shortage, remains strong. Sequentially, inventory has decreased by just over 6 percent, and compared to the same quarter last year, it has decreased by over 34 percent, and by 24 percent compared to the end of the year.

TagMaster is currently well positioned in a market with strong long-term growth prospects and good profitability, and we are committed to continuing to make TagMaster a leading company in Intelligent Transportation Solutions (ITS).

Jonas Svensson, CEO

Auditor’s review

This report has been reviewed by the company auditor.

Financial calendar

February 5, 2025: Earnings release 2024
March 27, 2025: Annual Report 2024 available on web site
April 24, 2025: Annual general meeting, Kista
April 24, 2025: Interim report first quarter 2025
July 18, 2025: Interim report second quarter 2025
October 23, 2025: Interim report third quarter 2025
February 5, 2026: Earnings release 2025

This report and previous reports and press releases are found at the company home page www.tagmaster.com.

This year’s Nomination Committee consists of the following members:
Anders Bladh (own and related company holdings)
Gert Sviberg (own and related company holdings, board member of TagMaster AB)
Tomas Brunberg (related company holdings)
Didrik Hamilton (Hamilton/Lewenhaupt-spheres)
Bernt Ingman (chairman of the TagMaster board)

Anders Bladh has been appointed chairman of the Nomination Committee.

The Nomination Committee shall complete the tasks that pertains to it under the Swedish Code of Corporate Governance, which means that it will present the following proposals to the annual general meeting 2025: (a) proposal for board of directors, (b) proposal for auditor, (c) proposal for chairman of the board, (d) proposal for director’s fees to each of the directors and the chair, (e) proposal for remuneration to the auditor, (f) proposal for chairman of the annual general meeting, (g) principles for appointment of the nomination committee and (h) to the extent deemed necessary, proposal regarding amendments of the current instruction for the Nomination Committee.

The Annual General Meeting will be held on April 24, 2025, at Kronborgsgränd 11, konferensrum Nobel, 164 46, Kista.

Shareholders who wish to contact the Nomination Committee to propose candidates for Nomination as members of the TagMaster Board of Directors should contact Anders Bladh, telephone: +46 (0)70 666 8045 or e-mail: andersbladh@outlook.com or aktie@tagmaster.com.

April-June 2024

• Net sales increased during the quarter by 4,8 % to 102,9 MSEK (98,2). The organic and currency adjusted growth amounted to -9,6 %.
• Adjusted EBITDA decreased during the quarter by 25,8 % and amounted to 11,6 MSEK (15,7) corresponding to an adjusted EBITDA margin by 11,3 % (15,9).
• Operating profit was 2,5 MSEK (7,7), corresponding to an operating margin of 2,4 % (7,9).
• Profit/loss for the quarter was 1,2 MSEK (6,3).
• Result per share basic and diluted was 0,08 SEK (0,43).
• Cash flow from operating activities for the period was 15,4 MSEK (5,4).

January-June 2024

• Net sales increased during the first half year by 4,9% to 201,9 MSEK (192,6). The currency adjusted growth amounted to -12,4 percent.
• Adjusted EBITDA decreased during the first half year by 11,8% to 21,0 MSEK (23,5), corresponding to an adjusted EBITDA margin by 10,3% (12,2).
• Operating profit/loss was 0,7 MSEK (7,8) which correspond to operating margin of 0,3% (4,0).
• Profit/loss for the period was -1,9 MSEK (6,6).
• Result per share, basic and diluted was -0,13 SEK (0,45).
• Cash flow from operating activities for the period was 41,2 MSEK (21,0).

Amounts in TSEK	2024 April-June	2023 April-June	2024 Jan-June	2023 Jan-June	R12M July-June	2023 Full Year
Net sales	102 907	98 165	201 907	192 555	414 062	404 711
Net sales growth, %	4,8	11,6	4,9	15,0	7,9	12,9
Gross margin, %	69,3	71,6	67,8	71,0	67,0	68,5
Adjusted gross margin, %	69,3	71,6	69,1	71,0	69,2	70,1
Adjusted EBITDA	11 615	15 653	20 760	23 533	54 401	57 174
Adjusted EBITDA margin, %	11,3	15,9	10,3	12,2	13,1	14,1
EBITDA	11 615	15 653	17 997	23 533	42 760	48 296
EBITDA margin, %	11,3	15,9	8,9	12,2	10,3	11,9
Equity ratio, %	60,9	63,9	–	–	60,9	60,5
Cash flow from operating activities, MSEK	15,4	5,4	41,2	21,0	48,7	28,5
Net debt/EBITDA, R12M	–	–	–	–	0,4	0,9
Number of employees at end of period	120	113	–	–	120	115

Comments by the CEO

I am pleased to report that, even after just a few quarters, our latest acquisition is already adding value to TagMaster’s overall offering. With a very strong performance in the second quarter of the year and a 225 percent increase in sales compared to the same quarter last year, the American radar business (RTMS) is already contributing positively to the group. At the group level, net sales increased by just under 5 percent to SEK 103 million in the second quarter. Some application areas, where demand is characterized by long-term investment decisions, had a slightly lower volume during the quarter compared to the previous year due to market fluctuations and strong comparison figures. The group’s EBITDA result amounted to SEK 11.6 SEK, corresponding to an adjusted EBITDA margin of 11.3 percent.

The development in the second quarter continued to demonstrate that our strategic focus on a combination of organic and acquired growth is the right path to take. Our latest acquisition of the radar business (RTMS) from the American company Image Sensing Systems (ISS) has developed very well in a short period. Through the acquisition, which was completed in the third quarter of 2023, we have strengthened our offering and can deliver both ground-installed sensor solutions and a series of high-performance radar-based sensor solutions for above-ground installation. Already in the final quarter of 2023, the acquisition developed well, which were once again confirmed in the past quarter when RTMS sales grew by 225 percent compared to the second quarter of last year.

Some of TagMaster’s application areas, where demand is characterized by long-term investment decisions often at the governmental level, experienced slightly lower volumes during the quarter due to a lag in investments. This resulted in a negative currency-adjusted organic growth for the quarter at the group level and a slightly lower gross margin. However, I want to emphasize that these are temporary business fluctuations, which are normal given that projects such as tunnels, bridges, subway projects, and tram traffic projects are tied to irregular investment cycles. Additionally, the comparison figures from the second quarter of 2023 were strong.

Looking ahead, I can confirm that TagMaster is well-positioned to contribute to solutions for some of the major challenges facing the world’s transportation systems. These include solving traffic issues such as congestion in densely populated areas globally, reducing and preventing accidents, and reducing traffic emissions. This will drive demand for our solutions as necessary investment decisions in infrastructure are made across many parts of the world.

Our latest acquisition in the USA, as described above, also positions us better to meet the growing demand for multi-sensor solutions. We see great potential in continuing to develop both new products and our sales in the American market and through our global partner network. During the quarter, we continued to invest in the sales organization and further integrate our operations with the aim of better scaling up our commercial offering.

The group’s sales for the second quarter amounted to SEK 103 million, an increase of 4.8 percent compared to the same period in 2023. The quarter’s organic turnover change, adjusted for currency effects and acquisitions, was SEK -9.4 million, corresponding to a decrease of 9.6 percent. Costs were slightly higher compared to the second quarter of 2023, partly due to increased market and sales expenses, which were partly temporary, as well as increased salary costs impacting overall expenses.

The Traffic Solutions business amounted to SEK 91.5 million, an increase of approximately 9.3 percent compared to the corresponding quarter in 2023. During the quarter, Traffic Solutions accounted for 89 percent of sales, while Rail Solutions accounted for 11 percent. The positive development of the Traffic Solutions business underscores our strategic focus to invest further in this segment both organically and through acquisitions.

The adjusted gross margin at group level was 69.3 percent (compared to 71.6 percent), with an adjusted EBITDA result of SEK 11.6 million, corresponding to an adjusted EBITDA margin of 11.3 percent. The slightly lower gross margin is a result of the aforementioned application mix during the quarter. Cash flow from operating activities amounted to SEK 15.4 million, and the group’s solvency ratio was 60.9 percent at the end of the period.

The effort to reduce working capital, primarily inventory levels that increased during previous component shortage periods, remains a focus. Sequentially, the inventory has decreased by just under 8 percent, and compared to the same quarter last year, it has decreased by just under 4 percent. Compared to the end of the year, it has decreased by 19 percent.

TagMaster is today well positioned in a market with long-term favorable growth opportunities and good profitability, and we are determined to continue making TagMaster a leading company in Intelligent Transport Solutions (ITS).

Jonas Svensson, CEO

Auditor’s review
This report has not been reviewed by the company auditor.

Financial calendar

October 23, 2024: Interim report third quarter 2024
February 5, 2025: Earnings release 2024

This report and previous reports and press releases are found at the company home page www.tagmaster.com.