Siili Solutions Oyj

Quarterly Report • Apr 22, 2025

Siili Solutions Plc, Business review, 1 January–31 March 2025

Q1 2025 FOR SIILI

Siili continued AI strategy implementation and actions for profitability improvements, revenue at the previous year's level

January-March 2025

• We completed the acquisition of a majority stake in Intergrations Group Oy
• We launched an Advisory service to accelerate our clients' digital business and use of artificial intelligence
• We adjusted our competence profile to match our strategy and the current market situation
• The revenue for the first quarter was EUR 29.9 (29.8) million, representing increase of 0.3% year on year. Organically, revenue decreased by 1.6% from the comparison period.
• Adjusted EBITA for the first quarter was EUR 1.3 (1.6) million, which corresponds to 4.2% (5.3%) of revenue

EUR million	Q1/2025	Q1/2024
Revenue	29.9	29.8
Revenue growth, %	0.3%	-11.3%
Organic revenue growth, %	-1.6%	-11.3%
Share of international revenue, %	27.1%	27.7%
Adjusted EBITA	1.3	1.6
Adjusted EBITA, % of revenue	4.2%	5.3%
EBITA	1.2	1.4
EBIT	0.9	1.1
Earnings per share, EUR	0.05	0.07
Number of employees at the end of the period	957	973
Average number of employees during the period	950	990
Number of full-time employees (FTE) at the end of the period	931	950
Number of full-time subcontractors (FTE) at the end of the period	144	137

Outlook of 2025

Revenue for 2025 is expected to be EUR 108‑130 million and adjusted EBITA EUR 4.7‑7.7 million.

CEO Tomi Pienimäki:

The first quarter of this year was challenging for Siili as the sluggish market conditions prevailed, and we took concrete steps to improve the profitability of our operations. However, many positive developments also occurred during the initial months of the year while we focused with determination on the implementation of our strategy.

The Group's revenue in January-March amounted to just under EUR 30 million, broadly at the previous year's level. Adjusted EBITA for the first quarter amounted to EUR 1.3 million, 4.2% of revenue. Profitability came in slightly weaker than last year, in line with our expectations. However, when comparing to the previous year's result, it is worth noting that the adjusted EBITA for the comparison period was improved by the temporary layoffs implemented during Q1 2024.

During the initial months of the year, we have seen encouraging developments in the market, with our customers moving from testing artificial intelligence to firm transition programmes. In March, we launched a new Advisory service to accelerate our customers' digital business and adoption of AI.

An example of how we support our customers on their AI journey is an AI-assisted training programme we delivered for Alma Media at the beginning of the year. It is a tailored solution that helps Alma Media to integrate AI seamlessly into its operations and culture.

Siili also worked with Varma to modernise a key system. The objective of the modernisation was to simplify the maintenance of the system and improve its scalability and development potential, ensuring it continues to meet Varma's business needs reliably into the future. The work was carried out in stages and in close cooperation with the client, ensuring the continuous operability of the system.

During the opening months of the year, we have also built new cooperation networks that allow extensive utilisation of Siii's expertise. In March, Siili was accepted as a member in the Digital Defence Ecosystem, which brings together Finland's leading technology companies to support national defence capabilities and the security of supply. Siili also became an NVIDIA partner earlier this year as part of the NVIDIA Partner Network (NPN), which significantly supports us in bringing scalable, productionready AI solutions to our customers.

In February–March, we adjusted our competence profile to align with the strategy we released last year, and current market conditions. Following change negotiations started in February, we will reduce 25 roles from Siili Finland's functions and 8 from Siili Auto Finland. Actions affecting personnel are always difficult for the

This is not an interim report under IAS 34. The company complies with the half-yearly reporting requirements of the Securities Markets Act and publishes business reviews for the first three and nine months of the year, which present key information on the company's financial performance. The financial information presented in this business review is unaudited.

FURTHER INFORMATION:

CEO Tomi Pienimäki Tel: +358 40 834 1399, email: tomi. pienimaki(at)siili.com CFO Aleksi Kankainen Tel: +358 40 534 2709, email: aleksi. kankainen(at)siili.com

DISTRIBUTION:

Nasdaq Helsinki Ltd Main media www.siili.com/en

SIILI SOLUTIONS IN BRIEF:

Siili Solutions Plc is a forerunner in AIpowered digital development. Siili is the go-to partner for clients seeking growth, efficiency and competitive advantage through digital transformation. Our main markets are Finland, the Netherlands, the United Kingdom, and Germany. Siili Solutions Plc's shares are listed on the Nasdaq Helsinki Stock Exchange. Siili has grown profitably since its founding in 2005. www.siili.com/en

organisation, but we believe these adjustments will strengthen Siili's competitiveness and profitability. With these measures, we estimate that we will achieve a total of 2.2 million euros in annual cost savings.

To strengthen Siili's competence profile, we concluded the acquisition of a majority stake in Integrations Group Oy at the beginning of the year. Integrations Group is now part of Siili, and the collaboration has started strongly. We continue to strengthen our competence profile in line with the strategy also through recruitment and human resources development.

I want to thank all our customers and partners for the past few months, but above all, I extend my thanks to the Siili team for their commitment and outstanding work during the quarter.

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Consolidated income statement and consolidated statement of comprehensive income

EUR 1,000		Q1/2025	Q1/2024	2024
REVENUE		29,916	29,824	111,899
Other operating income		77	59	298
Materials and services		-6,300	-6,175	-23,344
Employee benefit expenses		-18,476	-18,534	-68,600
Depreciation and amortization		-1,124	-1,188	-4,617
Other operating expenses		-3,173	-2,904	-12,045
OPERATING PROFIT		921	1,082	3,592
Financial income		9	346	1,291
Financial expenses		-415	-417	-1,367
PROFIT BEFORE TAXES		515	1,010	3,516
Income taxes		-145	-403	-67
PROFIT FOR THE PERIOD		370	607	3,449
Attributable to:
Shareholders of the parent company	100 %	370	607	3,449
Earnings per share based on the profit attributable to shareholders of the parent company:
Basic earnings per share (EUR), profit for the period		0.05	0.07	0.43
Diluted earnings per share (EUR), profit for the period		0.05	0.07	0.43

EUR 1,000		Q1/2025	Q1/2024	2024
PROFIT FOR THE PERIOD		370	607	3,449
Other comprehensive income
Items that may later be recognised through profit or loss
Translation differences		249	-223	-712
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		619	384	2,737
Total comprehensive income for the period attributable to:
Shareholders of the parent company	100%	619	384	2,737

Consolidated statement of financial position

EUR 1,000	Q1/2025	Q1/2024	2024	EUR 1,000	Q1/2025	Q1/2024	2024
ASSETS				SHAREHOLDERS' EQUITY AND LIABILITIES
Non-current assets				Shareholders' equity
Goodwill	34,171	32,208	31,868	Share capital	100	100	100
Intangible assets	7,393	8,101	7,673	Reserve for invested unrestricted equity	26,765	26,765	26,765
Tangible assets	774	1,185	850	Treasury shares	-461	-461	-461
Right-of-use assets	3,132	3,603	3,260	Translation differences	-984	-747	-1,236
Other investments	1	1	1	Retained earnings	16,856	16,614	16,424
Deferred tax assets	317	17	229	Total shareholders' equity	42,275	42,271	41,592
Receivables	165	159	163
Total non-current assets	45,952	45,273	44,043	Non-current liabilities
				Financial liabilities	3,217	5,217	3,717
Current assets				Lease liabilities	1,429	1,442	1,480
Trade receivables	14,683	17,480	14,895	Other non-current interest-bearing liabilities	7,197	10,143	5,600
Other receivables	6,358	6,783	4,433	Deferred tax liabilities	928	1,069	957
Current tax assets	1,166	753	902	Total non-current liabilities	12,771	17,871	11,754
Liquid funds	15,905	26,585	20,331
Total current assets	38,112	51,600	40,561	Current liabilities
				Financial liabilities	6,177	11,822	6,600
TOTAL ASSETS	84,064	96,873	84,604	Lease liabilities	1,807	2,251	1,886
				Trade and other payables	20,778	22,354	22,701
				Current tax liabilities	224	297	49
				Provisions	32	7	23
				Total current liabilities	29,018	36,732	31,259
				Total liabilities	41,789	54,602	43,012
				TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	84,064	96,873	84,604

EUR 1,000	Q1/2025	Q1/2024	2024	EUR 1,000	Q1/2025	Q1/2024	2024
Cash flow from operating activities				Cash flows from financing activities
Profit for the period	370	607	3,449	Loan repayments	-1,015	-1,014	-2,518
Adjustments:				Repayments of lease liabilities	-662	-705	-2,703
Depreciation and amortisation	1,124	1,188	4,617	Share subscriptions with share options	-	17	17
Share-based incentive scheme	63	-3	189	Divideds paid	-	-	-2,109
Other adjustments	1,187	1,178	-1	Distribution of dividends to non-controlling interests	-	-172	-874
Interest expenses and other financial expenses	415	417	1,367	Transactions with non-controlling interests	-	-38	-450
Interest income	-9	-346	-1,291	Net cash flow from financing activities	-1,677	-1,913	-8,638
Taxes	145	403	67
Changes in working capital:				Change in liquid funds	-4,413	-2,405	-8,653
Change in trade and other receivables	-1,326	-605	4,199	Liquid funds at the beginning of the period	20,331	29,022	29,022
Change in trade and other payables	-2,117	-1,682	-1,272	Effect of changes in currency exchange rates	-13	-33	-38
Interest paid	-255	-173	-435	Liquid funds at the end of the period	15,905	26,585	20,331
Interest received	9	249	429
Taxes paid	-371	-194	-567
Net cash flow from operating activities	-1,952	-145	10,751
Cash flow from investing activities
Acquisitions of businesses and subsidiaries, net of cash acquired	-734	-40	-9,462
Proceeds from the sale of tangible and intangible assets	8	8	18
Investments in tangible assets	-58	-119	-324
Investments in intangible assets	-	-196	-998
Net cash flow from investing activities	-784	-347	-10,766

Consolidated cash flow statement