BTS Group (BTS) investor relations material

Financial performance and regional highlights

• Achieved 5% global revenue growth and 19% profit improvement in Q1, with North America returning to profitable growth after restructuring and AI integration.

• Europe led growth with 17% organic increase, especially in France and Germany, and maintained strong win rates in large multinational deals.

• Other Markets faced profit drops due to challenges in Asia, but recovery actions and leadership changes are underway, with expectations for a second-half rebound.

• Middle East operations delivered double-digit growth despite regional instability.

• AI-driven productivity gains resulted in SEK 74 million in cost savings, positively impacting P&L.

AI strategy and client engagement

• AI is central to innovation, with AI included in every proposal, boosting win rates from 30% to over 70%.

• Direct AI bookings rose 35% year-over-year, and AI product bookings tripled.

• Major AI clients include Anthropic and Google, with projects spanning leadership development, go-to-market strategy, sales enablement, and partner training.

• AI-related revenue in North America is about 3.5% but growing rapidly, with activities expanding in Europe.

• AI has enabled significant operational efficiencies, reducing the need for operational roles and focusing recruitment on client-facing talent.

Market trends, competition, and growth outlook

• Demand for in-person leadership and strategy experiences remains strong, balancing the rise of AI-driven solutions.

• EdTech disruption is mainly affecting content services, but core simulation and consulting offerings remain resilient.

• European pipeline is healthy, with no major shifts in Q2; defense is a strong sector.

• M&A activity slowed last year due to focus on AI partnerships but is now recovering, with interest in Germany, Japan, France, and Indonesia.

• North America’s turnaround attributed to internal changes and AI adoption, not market growth; software sector remains volatile.

• Southeast Asia expected to recover in the second half, with historical turnarounds taking about three quarters.