Decisions of the constitutive meeting of the Board of Directors

Sitowise Group elected Eero Heliövaara as Chair and Rodolfo Zeidler as Vice Chair of the Board following the 2026 AGM. The Board appointed Mirel Leino-Haltia as Chair of the Audit Committee and named Eero Heliövaara, Elina Piispanen and Rodolfo Zeidler as Audit Committee members. This is a routine governance disclosure with no financial metrics, guidance, or operational changes announced.

Analysis

A governance shuffle in a mid‑cap engineering/services firm typically signals a shift from passive oversight to active margin and risk management; expect the next 3–12 months to reveal tighter project controls, more conservative revenue recognition and earlier write‑downs on lower‑margin backlog. That process usually compresses short‑term EBITDA but materially improves cash conversion and gross margin sustainability over 12–24 months as weaker contracts are re‑priced or exited.

Second‑order effects: suppliers and small subcontractors will see tougher payment and performance terms, raising working capital stress for the local tier‑2/3 supply base within 1–2 quarters and creating tender opportunities for competitors that can absorb pulse demand. At the same time, clients (municipalities, infrastructure owners) may prefer a counterparty that signals stronger audit governance—potentially increasing win rates for strategic, higher‑margin bids over a 6–18 month window.

Key risks and catalysts to monitor are near‑term: audit committee commentary, interim financials and any announced internal control reviews—these can trigger +/‑15% moves in days. Medium term (3–12 months) the real inflection is backlog re‑pricing, tender success rates and M&A intent; a shift toward disciplined M&A or a clarified capital return policy would be a positive catalyst, while discovery of material restatements or project overruns would be a tail risk that could wipe out equity value quickly.

Key Decisions for Investors

• Long Sitowise (SITOWISE) — 6–12 month horizon. Buy equity to capture a 20–35% upside if governance tightens leading to improved gross margins and cash conversion; hedge with a 12–18% stop loss. Target catalysts: H1 results and audit committee disclosures.
• Pair trade: Long SITOWISE / Short SWECO-B.ST — 6–12 months. If Sitowise executes on tighter controls, expect relative outperformance versus larger integrators that compete on top line scale rather than project profitability. Aim for 2:1 reward:risk; unwind on widening of SWECO premium or Sitowise margin misses.
• Event hedge: Buy 9–12 month SITOWISE call spread (long calls / short higher strike) to cap cost while keeping upside exposure to governance-driven re‑rating; allocate <2% NAV and tighten if interim results flag surprises.
• Risk monitor (non-trade): flag any audit‑committee press release, interim accounts or large supplier disputes as immediate stop/trimming signals. If a restatement or multi‑project overrun is disclosed, exit long exposure within days and consider shorting peer contractor names exposed to the same client segments.