<a id="bm-comp-66c678be-fcd7-4343-af54-85c60292e8d7" name="bm-comp-66c678be-fcd7-4343-af54-85c60292e8d7" class="BMCustomAnchor"></a><table><tr><td bm-component-id="66c678be-fcd7-4343-af54-85c60292e8d7" style="vertical-align: top; width:100.000000%;"><ul><li>We expect a solid Q2 and raise '25e-'26e EBIT by 1%</li><li>'25e-'28e EBIT CAGR of 31% driven by senior subscriptions...</li><li>...leading EV/EBIT to drop from 19x in '25e to 5.8x in '28e</li></ul></td></tr></table><a id="bm-comp-db5ae678-4418-43c5-b504-fe822c8e534b" name="bm-comp-db5ae678-4418-43c5-b504-fe822c8e534b" class="BMCustomAnchor"></a><table><tr><td bm-component-id="db5ae678-4418-43c5-b504-fe822c8e534b" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q2e: Revenue NOK 450m, EBITDA NOK 42m</h3><p>We forecast Q2 revenue of NOK 450m and EBITDA of NOK 42m. In Q1, device sales in Kids & Youth were soft due to low sell-in to channels. However, device activations were in line the first quarter of the previous two years, indicating that end-market demand remained stable. Xplora has said that it expects to "catch up" the volume in Q2. As such, we forecast Q2 device sales up 10% y-o-y in Kids & Youth. In Senior (Doro), we expect device sales to increase 7% y-o-y, driven by the phasing out of 2G in Norway. Xplora has pre-announced 393k subscriptions at the end of Q2, which was just above our expectation of 388k. Factoring this into our estimates, we lift '25e-'26e EBITDA and EBIT by 1%.</p><h3 class="bm-h3">Doro SIM and Youth phones launching in Q2-Q3</h3><p>In Q1, Xplora stated that Doro SIMs and Youth phones remained on track and would both launch in Q2. It plans to launch Doro subscriptions in Sweden in June, followed by the rest of the Nordics in Q3, and the UK, Germany, and France in Q4. Its Kids business has achieved a ~25% conversion rate (subscriptions per watch sold). For Doro, we expect a lower rate, as seniors usually already have mobile subscriptions. But with ~1.5m Doro phones sold annually, even a 5-10% conversion rate would be enough to create strong earnings growth. We model an 8% conversion rate from '27e (gradual ramp-up until then). Combined with modest growth in Kids & Youth, this gives revenue and EBIT CAGRs of 11% and 31% for '25e-'28e, resulting in EV/EBIT dropping from 19x in '25e to 5.8x in '28e.</p><h3 class="bm-h3">Fair value range of NOK 35-62/sh</h3><p>On our '25e-'26e, Xplora is trading at 18.7-13.5x EV/EBIT and 15.3-11.8x EV/EBITDA-capex. This is 9-19% below our peer group on EV/EBITDA-capex. Our DCF scenarios point to NOK 35-62/share.</p></td></tr></table>