System1 : 2025| Annual Report and Accounts

About this update from System1 Group Plc

Annual Report and Accounts for the year ended 31 March 2025 Pfizer uses System1 for all our ads now, I think we've tested 300 ads over the past couple of years. We think having a standardized approach, with really clear benchmarks, linked to ROI, that allows us to understand how our various ads are performing against themselves but also how they're performing against other benchmarks, has been extremely useful for us to be able to improve the emotional resonance of the advertising we put out there. Susan Rienow, Chief Marketing Officer, Pfizer Index Highlights 1 Strategic Report 2 Group Overview 3 Chairman's Statement 4 Founder's Statement 5 CEO's Statement 8 Financial Review 20 Principal Risks and Uncertainties 23 Environmental and Social Report 26 Governance & Group Directors' Report 34 Group Directors' Report 35 Statement of Directors' Responsibilities 38 Corporate Governance 39 The Board 45 Audit Committee Report 46 Remuneration Committee Report 48 Independent Auditor's Report to the Members of System1 Group PLC 52 Consolidated Income Statement 61 Consolidated Statement of Comprehensive Income 62 Consolidated Balance Sheet 63 Consolidated Statement of Cash Flows 64 Consolidated Statement of Changes in Equity 66 Notes to the Consolidated Financial Statements 67 Company Balance Sheet 91 Company Statement of Changes in Equity 92 Notes to the Company Financial Statements 93 Company Information 102 Highlights 2025 ("FY25") £m 2024 ("FY24") £m Change* % Results for the year ending 31 March Platform Revenue ("Predict & Improve" **) Other Revenue (Bespoke consultancy) 34.5 2.9 24.8 5.2 39% -45% Total Revenue 37.4 30.0 25% Gross profit 32.9 26.1 26% Operating costs (28.0) (23.4) 19% Other operating income 0.4 0.4 -8% Finance expense - - nm Profit before tax 5.3 3.1 71% Tax charge (0.8) (1.1) -23% Profit for the financial year 4.5 2.0 120% All figures in the Highlights are presented in millions rounded to one decimal place unless specified otherwise. Percentage movements are calculated based on the numbers reported in the financial statements and accompanying notes. * Year-on-year percentage change figures are based on unrounded numbers. ** Data and data-led consultancy 2025 ("FY25") 2024 ("FY24") Change % Key performance indicators Platform revenue growth 39% 43% -4% Number of clients 563 428 31% Gross profit % Revenue 88% 87% 1% Adjusted profit before tax 1 5.2 3.1 68% Adjusted EBITDA £m 2 6.6 4.4 52% Adjusted EBITDA % Revenue 18% 15% 3 points Rule of 40 3 57% 57% 0% Free Cash Flow (FCF) £m 4 4.2 4.0 0.2 Net Cash £m 12.9 9.6 3.3 Diluted earnings per share** 35.2p 16.0p 120% Ordinary dividend per share 5.5p 5.0p 10% Special dividend per share 5.5p - nm 1. Profit before tax plus share-based payment expenses 2. Profit before tax + share-based payments (inc. associated social security provision) + interest, depreciation and amortisation 3. Platform Revenue growth %+ Adjusted Group EBITDA % Group Revenue 4. Cash flow after interest and before debt raising/reduction, buybacks/dividends Total Revenue of £37.4m, up by 25% YoY º Platform Revenue up by 39% YoY º Over 300 new Platform clients in FY25 produced £8.1m new Platform Revenue º Platform Net Revenue Retention 106% º US Revenue up by 49% YoY; UK up by 28% YoY º Ad testing Revenue up by 38% YoY Gross profit margin 88% (FY24: 87%) Adjusted EBITDA £6.6m at 18% margin Adjusted PBT £5.2m (FY24: £3.1m, + £68% YoY), PBT £5.3m (FY24: £3.1m, +71% YoY) Free cash flow £4.2m. Year-end cash £12.9m Earnings up by 120% from 2.0m to £4.5m Diluted earnings per share up 120% to 35.2p Proposed ordinary dividend of 5.5p per share; additional proposed special dividend of 5.5p per share in recognition of outstanding year-on-year earnings growth and cashflow generation. Strategic Report Group Overview - System1 on a page Who we are and why we exist What we do System1 is a marketing decision-making platform business. Since 2000, System1 has helped marketers tap into consumers' emotions to predict and improve the commercial impact of ads and ideas. Our methodology is rooted in the groundbreaking behavioural science and emotion-based research of psychologists Our products Daniel Kahneman and Paul Ekman. Our target customers are the world's largest brands. These businesses understand that creativity is the most powerful tool for growth within their control. System1 helps them make confident creative decisions that lead to transformational business results. System1 predicts and improves marketing effectiveness. Our advertising and idea tests measure emotion to give our customers the most accurate predictions of the business impact of creativity. We 'predict' (provide research results) and work with our customers and 'improve' (provide insight and consultancy on those results) advertising effectiveness, innovation effectiveness and brand effectiveness. Our unique selling point is predictiveness, translating emotion into business results. We deliver automated fast-turnaround Data and Data-led Consultancy products for ad testing, innovation testing and brand effectiveness tracking. We can supplement the platform We run tests in 81 markets globally. Office locations include London, New York, Miami, Los Angeles, Chicago, Boston, Sao Paulo, Paris, Hamburg, Rotterdam, Lausanne, Singapore, and Sydney. Where we operate How we operate proposition with bespoke consultancy where this is required by our customers. Our largest customers buy both Data and Consultancy. We are guided by our growth model "flywheel". We meet our customers' needs with leading propositions delivered efficiently via the platform. We build awareness of our propositions through fame-building partnerships which bring customer interest that we seek to convert and scale up. Growth in our scalable model produces improved margins which we then seek to reinvest in our people, our shareholders, and back into the business growth flywheel. The growth model is underpinned by a robust support structure and performance culture. Chairman's Statement '' Revenue rose by 25% to £37.4m, profit before tax by per share. 71% to £5.3m, and the business generated £4.2m free cashflow. Earnings for the year were up 120% to £4.5 m, 35.3 pence '' I am delighted to report a second successive year of strong growth in revenue, profit and cash generation. Revenue rose by 25% to £37.4m, profit before tax by 71% to £5.3m, and the business generated £4.2m free cashflow. Earnings for the year were up 120% to £4.5m, equivalent to 35.3 pence per share. The CEO's Statement comprehensively reviews progress towards our strategic priorities. Highlights in the past year include: Total revenue up by 25% year-on-year Profit after taxation up by 120% year-on-year Over 300 new platform clients in 2025 System1 worked with 5 of the top 10 advertisers in the US and 8 out of 10 in the UK Significant progress in the USA, with Revenue increasing by 49% year-on-year Investment increased by £2m for FY26 in order to accelerate profitable growth and revitalise our Innovation proposition Winners of Best Governance Award at the 2024 AIM Awards. I stated in last year's annual report that retention and reward of our key people is a mission-critical priority. Having put in place short-term incentive plans for the executive leadership team in FY24, in May 2025, following consultation with some larger shareholders, we followed up with a new long-term incentive plan, details of which can be found in the remuneration report. Your board was pleased to resume paying dividends in 2024 and will be proposing an increased ordinary dividend of 5.5p per share, up 10% on FY2024, together with a special dividend of 5.5p per share at the forthcoming AGM. The special dividend recognises the exceptionally high growth in after tax profits last year and a second successive year of strong cash generation. These proposed dividends reflect the board's confidence in the prospects and the leadership of the business. On behalf of the Board I would like to recognise the immense effort that over 180 colleagues in the business make every day to meet and exceed the needs of our customers and reach the level of performance we achieved in FY25 and I'm confi- 120% Increase in earnings FY25 dent that this momentum will continue in FY26. Last but not least, I'd like to pay tribute to System1's Founder John Kearon whose vision and inventiveness gave life to this business 25 years ago. John's application of behavioural science to predictive market research, particularly understanding the importance of emotion, has changed the industry forever. From September, John will assume a non-executive role in the business and will also continue to provide strategic guidance, challenge and oversight to the management team, as the Head of a new Board strategic and product advisory committee, QualCo, with the aim of keeping System1 at the forefront of thought leadership and creative effectiveness. Rupert Howell Chairman Founder's Statement - Mischief, Marketing & Methodology: A Retrospective In January 2000, with nothing but a dodgy laptop, a mad glint in the eye, and an allergic reaction to traditional market research, BrainJuicer was born. We weren't just another agency - we were the inconvenient upstart. The uninvited guest at the research party who refused to wear a tie and instead asked the awkward (and sometimes brilliant) questions. From the get-go, BrainJuicer wasn't about validating hunches or ticking boxes - we were about unsettling the status quo. We believed market research should inspire creative marketing, not neuter it. It should encourage brave ideas, not bland conformity. And above all, focus on measuring emotion. Why? Because as we've proved…, the more people feel, the more people buy…, vote…, give…, and act. By contrast, the conventional, seemingly sensible, rational research metrics are frequently poor at predicting consumer behaviour and by extension, the commercial potential of an ad or innovation. The Big Juicy Bang Back in those early days, we pioneered predictive methodologies using the then-barely understood world of behavioural science - all designed to maximise the speed and cost advantages of online research. At the time traditional agencies were still conducting face-to-face research, we '' built FaceTrace®, MindReader®, Predictive Markets - tools that felt more like mischief than metrics and yet proved unnervingly effective. By 2006, we floated on AIM as BrainJuicer PLC. A bit of a mouthful on the London Stock Exchange roster, perhaps, but we liked it that way. It was irreverent, provocative - and unmistakably us. We opened offices in New York, Amsterdam, Shanghai, Paris, Delhi, Hamburg, São Paulo (hello Brazil!), Vevey, Singapore, Sydney, fuelled not by spreadsheets but by emotion, energy, and enough commercial savvy to keep the lights on. By 2010, we were winning accolades like "Most Innovative Agency" from the GRIT report, "Agency of the Year" from Marketing Magazine, and a curious number of new friends (and enemies) in the research world. Our growth was organic, persistent and global. Proof the world was ready to move on from dusty focus groups and warmed-over quant. The System1 Revolution 2016 marked a turning point. With Daniel Kahne-man's "Thinking, Fast and Slow" now a business bible, we rebranded to System1 Group PLC. Why? Because we were already living it. Kahneman's insights had been stitched into our DNA from day one. We embraced System 1 (fast, intuitive, emotional decision-making) over the cold comforts of System 2 logic. We weren't just running research anymore - we were predicting advertising effectiveness, brand growth, and innovation success. Fast. Accurately. '' Back in those early days, we pioneered predictive methodologies using the then-barely understood world of behavioural science - all designed to maximise the speed and cost advantages of online research. Founder's Statement continued At scale. Test Your Ad, Test Your Brand, Test Your Idea: simple, elegant, systemised. And behind it all, the biggest advertising prediction database in the world, testing almost every US & UK ad, as well as thousands of ads across the world. It wasn't just smart research anymore - it was a decision-making platform, complemented by our value-enhancing creative guidance. Or as we liked to call it: a BS-free zone for marketers who actually wanted their brand(s) to grow and were prepared to break with convention to achieve it with System1's help. From Chief Juicer to Cheerleader-in-Chief After 22 years as CEO, I handed over the reins to James Gregory, who continues to do a brilliant job steering System1 into its next phase of growth. He brings the leadership, operational rigour and vision needed to turn our IP into a billion-pound business. And me? I spent the first year growing our US business, and the last two as Head of System1 Futures, happily scheming in the background - writing, inventing, and helping the next generation of Juicers turn emotion into accurate predictions and creativity into profit. From September, I will become a Non-Executive Director, and Head of a new Board strategic and product advisory committee, QualCo . We've never stopped investing in ideas. We launched FeelMore50, Uncensored CMO, published books like Lemon and Look Out , partnered with the IPA, ITV, LinkedIn, TikTok, Pinterest, '' JCDecaux, Radio Centre, and many of the world's largest advertisers, ad agencies, and media companies - and stayed true to our belief: feel more, buy more. It's not a tagline. It's the truth. 25 Years, Zero Compromise We've stayed independent. We've stayed unique. We've kept our soul. Yes, we've had tough years (2012, 2018, pandemic-era crunch). But we came through by doubling down on invention and resilience. With no small thanks to the incredible support of our long-term, super-smart investors, wise Chairmen, committed Board members and collaborators. Our people - brilliant, opinionated, often maddening - not only make System1 a joyful place to work but continue to be front and centre in raising the predictiveness, influence, effectiveness, desirability and growth of modern Market Research. It's been a one hell of a collective effort over 25 years involving hundreds of talented colleagues -most of whom, but admittedly not all, still talk to me. Whether they do or don't, I send them my thanks and gratitude for helping System1 get to 25 in such good shape, much admired thought-leader, essential client partner, and a Company to be reckoned with. Over the years we've been lucky to work with incredibly talented, creative collaborators like, Dr. Paul Marsden, Orlando Wood, Jon Evans, Andrew Tindall, Les Binet, Peter Field, Mark Ritson, Mark Earls, Rod Connors, Colin Jenkinson, Will Headley, Our people - brilliant, opinionated, often maddening -not only make System1 a joyful place to work but continue '' to be front and centre in raising the predictiveness, influence, effectiveness, desirability and growth of modern Market Research. '' As of July 2025, we're a tech-powered prediction company with a creative soul. We've built a platform '' something, and drive profitable growth. that can tell you - by tomorrow morning - whether your ad or innovation will build brand fame, make people feel Bruce Bickerton, Nina Holland, Shravan Sampath Kumar, Tom Ewing, James McKinven, Kevin Chesters, Noah Brier, Mark Beard, Ari Popper, Susan Griffin & Gary Skeggs, Mike Carey and many more. We've worked with so many of the world's top advertisers and agencies, helping them shape and bring to market some of the most emotionally resonant ads of the last decade. We've stood for behavioural science before it was cool - stuck with it when it was inconvenient - and are determined to continue being the industry champion of famously enjoyable and profitable creative marketing. The Road Ahead As of July 2025, we're a tech-powered prediction company with a creative soul. We've built a plat- form that can tell you - by tomorrow morning -whether your ad or innovation will build brand fame, make people feel something, and drive profitable growth. Not bad for a gang of misfits who started out trying to "squeeze people's brains until they confess something fascinating." So, here's to 25 years of method in the madness. To every client who believed, every Juicer who dared, every investor who risked, every mistake we learned from, and every joyous moment we had along the way. System1 was never meant to be a traditional company. And thank goodness for that. John Kearon Founder 9 July 2025 CEO's Statement '' 300 new clients. The business has kept the customer at the heart of all we do, while balancing focus on growth with curiosity on future invention. We have grown System1 fame, winning over '' Accelerating Momentum FY25 picked up where the excellent FY24 left off as we accelerated momentum and started to double down on our strategic goals and tap into the massive opportunity facing us. In FY25, Sys-tem1 delivered £37.4m of Revenue, up 25% year on year, with 39% growth in Platform Revenue (our strategic platform and products) and a significant shift for Platform Revenue to reach 92% of Total Revenue. We continue to grow profitability, with Profit before Taxation up by 71% on the previous year. The business has kept the customer at the heart of all we do, while balancing focus on growth with curiosity on future invention. We have grown System1 fame, winning over 300 new clients with significant acceleration of progress in the US (US Revenue growth +49% year on year) alongside our core growth engine of the UK (+28% year on year). We have a clear model for growth with Platform Net Revenue Retention of 106% achieved in FY25 alongside £8.2m of new business revenues. We have made significant progress against the growth model we set out last year - our flywheel. We have enhanced the Test Your Ad platform and product suite, with new offers such as Test Your Ad Social to be launched in FY26, in partnership with TikTok, keeping System1 at the forefront of the ad testing market. Alongside the flywheel we have truly focused on our three strategic goals: 'Winning in America', 'Revitalising our Innovation Offer' and 'Winning and Scaling the World's Largest Brands'. We have increased focus, resource and budget in the US and are seeing the results come through in what is by far the largest target addressable market for both market research and marketing spend. We have revitalised our Innovation offer, where we have launched a new Test Your Innovation platform and product suite, supported by a dedicated go-to-market team and fame programme. We are winning with our target customer group - the World's Largest Brands, who have the capacity (and budget) to spend on our offerings and the capability to take on board on the learnings provided by our predictions and improvements to ensure they deliver world class creativity and effectiveness in their marketing. In what is System1's 25th anniversary year, we strongly believe that with our long experience in advertising and innovation, and a methodology Platform revenue as a percent of total 92% rooted in behavioural science, we are well placed to achieve our long-term goals by enabling the world's largest brands to create with confidence. To this end, we have accelerated investment to deliver growth, focusing on our people, the US market, and our customer offering. I'd like to take the opportunity to thank our staff who continue to amaze me each and every day with their passion, curiosity and drive, the Board whose strategic guidance and counsel is invaluable and the Executive team who continue to drive the business while creating the right performance-based culture for long-term growth. And most significantly, thank you to John Kearon for his continued counsel, invention and challenge -it takes an incredible amount of dedication to found and create a business like System1 and keep it at the forefront of thought leadership for 25 years. I look forward to continuing to work with John in his new Non-Executive role to drive forward our strategy, product and fame. Progress towards our strategic goals FY25 was a real year of focus for the business, rallying around key strategic goals. With Executive sponsorship and clear alignment across the business, we have been able to make significant progress against each of these three goals, albeit we are just scratching the surface of these opportunities. Winning in America By far the largest market with 54% of total market research spend (ESOMAR), the USA is a significant opportunity for System1. We have made clear our intentions to grow in this market and supported this with dedicated focus and investment. On top of the new roles created in March 24, with Mike Perlman (Global Chief Commercial Officer) based in the US and recruiting Alex Banks (SVP Commercial Americas), we have shifted several important marketing and partnership roles into the US, in particular recruiting Vanessa Chin, an ex-customer at Aldi US to become our Global Head of Marketing. The results are clear to see - sales up by 49% to £12.8m with the US promising to overtake the UK as our biggest revenue market. Our fame has increased significantly through a new partnership with Effies Worldwide looking to replicate our work with the Institute of Practitioners of Advertising in the UK. There has been a big focus on creating a winning culture with a team where our headcount has increased by 70% in the USA 49% Growth in US revenue and we have seen record levels of staff satisfaction as the team ramp up for success. Revitalising our Innovation Offer Creating dedicated focus on Innovation was a game changer as we allowed the core of the business to keep focused on the success of our Communications offer. Tristan Findlay joined the business as MD Innovation and has built out a team of dedicated Innovation roles, across Sales, Marketing, Product and Consultancy. Alongside the relaunch of our Test Your Innovation platform and product suite, we are starting to see green shoots of success and a strong start of growth in our Innovation offer in early FY26. Winning and Scaling the World's Largest Brands In FY25, we saw the results of putting the customer at the heart of what you do and building a commercial machine around this. Our Platform Net Revenue Retention of 106% is the best since launching the platform in 2020, and our new business engine continued with over £8.1m of revenues from 300 new client wins for the year. We have partnered with the world's largest brands to create truly effective marketing. While some customers request anonymity - not wanting to share the secret sauce - the case study that follows helps encapsulate our work with Very. Our work with Amazon Ads saw us on stage together at Cannes bringing our research and expertise to audiences. Building emotions, building showmanship, really telling that emotional relevant stories to our audience that helps build mental availability. I mean we saw the data from System1, that really helped us. At the end of the day there is an economic value on creating an emotional story. Lucia Ying, Head of Global SMB Brand Strategy & Beyond-Amazon Business at Amazon Ads CEO's Statement continued Case Study: Very Unlocks the Compounding Effects of Consistency and the Value of a Data-Driven Strategy Opportunity Following a number of years of varying creative approaches Very aimed to refresh its brand platform to align with its new strategy and vision, hoping to create a consistent platform which would stand out in a sea of sameness within the category. Their goal was to bring the "There's good, and there's Very good" strategy to life, infusing the brand with vibrancy, character, and variety to reflect the culture of the brands' homeland of Liverpool and their unique customers' zest for life. A creative platform titled "Let's make it sparkle" brought this strategy to life. Given the scale of this transformation, Very used data-driven decision-making to give full confidence that the new creative platform would not only engage their key customers but also attract a new consumer base. Solution In partnership with System1 and their creative agency, The Gate London, Very built a brand strategy rooted in effectiveness. At the heart of the strategy is System1's principles of Fame, Feeling, and Fluency, and the research of Orlando Wood, CIO at System1 and author of Lemon and Look out . His work explores the impact of brand characters and right-brained features, elements grounded in humanity, storytelling, and culture, contrasting with the more functional, message-led, and performance-driven left-brained approach. If Fame, Fluency and Feeling are the 'effec-tiveness engines' powering Very's brand strategy, audience and cultural insight are the fuel on which they fire. Very feed their model with rich audience data and relevant, resonant cultural trends. A key inspiration is "hun culture," a uniquely British sub-culture, characterised by a fabulous, cheeky, why-not vibe that finds joy in the everyday. The potent mix of audience and cultural insights informed a brand positioning of 'Flamingos in a flock of pigeons' - a positioning that speaks to the attitude of Very and its customers. The new creative platform launched in November 2023, in the UK's Superbowl of advertising, the festive period. The launch introduced Very's new brand characters, three fabulous flamingos - Kerry, Terry and Cherry -on a mission to make Christmas sparkle. Not your classic festive bird, but one that would become distinctively Very. While other retailers served up familiar festive sentiment, Very strutted in, pink, proud, impossible to miss. The launch creative delivered a strong 4.5 Star Nat Rep rating, and an exceptional 5.7 Star rating amongst Very's custom target audience. Building the Platform In 2023, following the festive launch of the "Let's make it sparkle" platform, Very saw a 3.4% year-on-year sales growth during their Golden Quarter, excelling in toys, gifts, beauty and electricals. This uplift aligned with System1 data, brand health tracking and econometric results, proving the value of a data-driven approach. But Very didn't stop there. Across the next year they doubled down on creative consistency. In March 2024, they refreshed their Very Pay always-on creative with their flamboyant flamingo world. By July 2024, their Back to School campaign extended the "Let's make it sparkle" platform to this key family moment, positioning Very as a go-to for parents year-round. Consistent use of brand characters, smart media placement and audience-focused targeting drove positive sentiment and consideration, reinforcing the power of a cohesive, consumer-first strategy. This strategic consistency enabled Very to expand into new categories, building awareness, fame and fluency in fashion. Having already built an incredibly distinctive animated world, Very understood that fashion would need a bespoke approach. Very took the essence of their strategy and translated it to fashion with the same vibrancy and flamingo energy associated to the brand. Haus of Flamingo launched Autumn Style, Very's first Fashion TV campaign in seven years, driving a huge 10% year-on-year growth in womenswear consideration and an exceptional 5.7-star rating among its target audience. It was fantastic to see our distinctive creative strategy extend into Haus of Flamingo and our style categories. The bespoke approach we took gave Haus of Flamingo a unique feel, but one which still had our Very sparkle at its core. We couldn't be happier with the way the campaign connected with our audience and increased consideration for Very's fashion offering. Jessica Myers, Chief Customer Officer at Very CEO's Statement continued The Flywheel FY25 was also a year of driving the flywheel forwards, identifying and removing any blockers to progress and accelerating the momentum we built up in FY24: 1 We help the world's largest brands make confident creative decisions that lead to transformational business results We have kept the customer at the heart of all we do and the first stakeholder in our decision making. We have proven that we can help our target market - the world's largest brands - across pre-testing and improvements of advertising, innovation as well as in brand tracking. Creativity remains at the core of the success of our customers advertising, innovation and brand growth - as demonstrated by data from over 5,000 IPA case studies which shows a 12x impact on the profit multiplier. This has been further proven out in our partnership with the Effies, with data from over 380 Global Marketers. While it also remains true that 51% of advertising has no impact on market share growth and that 95% of new product launches fail, the accurate predictiveness of our tests on our platform and the expert guidance provided by our people give our clients the confidence that their products and services will be a success when launched in the market. And most importantly, our clients know that once launched, these adverts and innovations will drive real business results for them: growth of their brand, revenue and profit. 2 We've created a platform and proposition … to help the world's largest brands make confident creative decisions We achieve this by measuring what matters most: emotion, that gets to your "System 1" response. Our IP and thought leadership have built on the work by Daniel Kahneman in "Thinking Fast and Slow" that sets out how System 1 thinking is fast, instinctive, emotional and drives behaviours. Our clients are clear that our ability to capture, measure and interpret emotional responses to creative content is the number one reason they buy from us, and many say that we do what no-one else in the market can do. Our platform, products and guidance are built on measuring emotion and translating that data into actionable insights that will deliver real business results. We have invested in our platform and product development, with the relaunch of the Test Your Innovation product suite in early FY25 alongside continued enhancements to our Test Your Ad product suite. I am very excited about the launch of a new Test Your Ad - Social product in early FY26. In early FY25, we launched a new Test Your Innovation product suite to replace Test Your Idea. This repositioned the previous version in a way that better suits our clients, helping our products meet our customers standard product development cycles. Our post-launch analysis tells us 5-Star ideas achieve three times more sales than 1-Star ideas. We help our customers gain valuable insight by benchmarking their results against our extensive database of over 54,000 ideas so they can be confident that they are investing in the best ideas for their business. Underpinning our Test Your Innovation platform and product is our patented share-trading methodology, while continuing to measure what matters most, emotion. How people feel about an idea, is a better predictor than what they think about it. Using FaceTrace technology, Test Your Innovation measures the emotional response of real people to predict potential in market success of each idea. And building on our thought leadership, Test Your Innovation Guidance allows our customers to improve their ideas through our unique insights and consultancy offerings. CEO's Statement continued FY25 has been a year of reaping the rewards of the expansion of the Test Your Ad product suite that was delivered in FY24. To recap, our Test Your Ad suite covers all media types from early-stage scripts to finished films, to ensure we have the fastest, most predictive, actionable products that meet our customers' needs. Alongside TV testing, we offer TYA for Digital, Audio, Out of Home and Print testing, allowing our customers to test full campaigns across media types. Alongside the platform and products, we refreshed our data-led consultancy, to incorporate our latest thought leadership, providing an updated framework on how advertising works and recommend improvements for our clients. But we haven't sat on our laurels and we have continued to invest in our Test Your Ad proposition. We have been working in partnership with TikTok to build out a new 'Test Your Ad - Social' product and proposition, which launched in early FY26. This allows customers to go beyond the traditional engagement metrics on social platforms, to truly understand why their campaigns are working. We test with a real social media audience and retain emotional response at the core of the IP. Our new skippable analysis method also includes features to understand how campaigns perform in the unique social landscape; including Attention Trace, Key Brand Assets, & how entertaining their assets really are. In addition to launching our new product, we've continued to enhance both our platform and overall user experience. This year, we introduced an We continue to prove the effectiveness of our methodology with real-world validations. In preparation for the peak holiday sales period, we conducted pre-launch testing in the US on all of LEGO's 2024 Advent Calendars. The AI-powered quality monitoring tool designed to reduce fraudulent responses and ensure higher data integrity. We also made significant strides in streamlining customer onboarding and show-casing new, high-impact features. A refreshed report navigation experience is now live, offering a cleaner and more intuitive interface. results showed strong positive correlation (+0.8) between our proprietary Star scores and subsequent product sales on Amazon, affirming the predictive value of our validation tools. CEO's Statement continued 3 We're famous for predictions and improvements … that help the world's largest brands make confident creative decisions In FY25, we made strong progress, achieving record levels of brand awareness across all parts of Fame building. We published new thought leadership that addresses the key challenges facing marketers today, shared weekly insights via our System1 and Uncensored CMO channels and established new partnerships with leaders like Effie and TikTok that will bring global research to the market in FY26. The combined fame-building efforts led to a 174% increase in new contacts to the System1 database compared to FY24. Thought Leadership - Our thought leadership secured the highest number of downloads ever in FY25. We published and participated in new industry-leading research including: Compound Creativity , a report exploring the business impact of consistency, that was downloaded by nearly 4,000 people The Extraordinary Cost of Dull , a report revealing the hidden cost of dull ads, with more than 3,000 downloads WARC's The Multiplier Effect report, which was downloaded by more than 6,000 marketers The Long and Short (form) of it , in partnership with TikTok, a report launched in early FY26 which reveals how short-form entertainment builds brands and converts on social medial platforms. We continued our tradition of sharing creative analysis and best practices around major marketing moments like the Christmas period and Super Bowl, with the Super Bowl securing 66% YOY growth for webinar registrants and 630 new database contacts. Partnerships - A new 2-year partnership with Effie enabled us to create a whitepaper being published in FY26, announced via a speaking slot for Professor Mark Ritson at the 2025 Cannes Lions Festival. The research frames creativity as an investment that offers lasting outcomes and pays back in an effort to help marketers communicate the value of brand building principles like emotion and consistency. Our new partnership with TikTok brings together System1 Test Your Ad platform data with Brand and Conversion Lift Studies from TikTok to highlight the keys to digital creative effectiveness through The Long and Short (form) of it . This launches early FY26 via SWSX and Cannes festivals. Events - We continued to build more personal relationships with marketers and promote our latest thought leadership, by exhibiting at and attending many leading marketing conferences and events, including ANA Masters of Marketing, Cannes Lions, Festival of Marketing and MAD// Fest. These included speaking spots alongside WARC and other Multiplier Effect partners at Advertising Week New York, with Duolingo & Liquid Death at SXSW, and with client Good Feet Store at the ANA conference. PR - We leveraged major advertising occasions like the Super Bowl and Christmas to secure features in Adweek , The Drum , Campaign , Marketing Week and the Financial Times . Globally, we achieved a 25% YOY increase in the number of news stories mentioning System1 and a 75% increase for the US market. This resulted in Sys-tem1's share of voice increasing 4% in the US and 12% in the UK, including 30% SOV in the US for the Super Bowl. Most brands use System1 while they're still making their ads to check they're hitting the right emotional beats. The success of Aldi's Kevin the Carrot campaigns, which feature Kevin getting into superhero-style scrapes across the dinner table, can largely be put down to System1. Stuart McGurk, Financial Times "Uncensored CMO" Podcast - Uncensored CMO maintained its position as the #1 marketing podcast in the UK and rapidly climbed the charts in the US by booking the biggest names in marketing, creating compelling content, expanding to YouTube and authentically weaving in System1 thought leadership. The podcast now has 50% of its guests coming from the US, with listeners up over 100% in the U.S. and 30 million social media impressions in the last year, with the U.S. being the largest market. Brands like OREO, Yum! Brands, Rare Beauty, Poppi, AB InBev, Amazon, Google and more all appeared and customers like Pfizer and Very promoted the value of their relationships and ad testing with System1. Social - We surpassed the 50,000-follower milestone on System1's LinkedIn page, growing total followers by more than 50% in FY25. In addition to advertising content, we leveraged both social and the website to share regular insights around innovation to support the relaunched Test Your Innovation platform. We also continued to see unprecedented growth and engagement rates among "Top Voices" like Jon Evans, Andrew Tindall and Vanessa Chin. Top Voices regularly amplified System1 thought leadership and our popular Ad Of The Week feature, helping to drive traffic to the System1 website, demo and thought leadership forms. 4 We make it easy for System1 to convert the world's largest brands at the right time FY25 surpassed FY24's record breaking year for new client wins, driven by our market-leading platform, proposition and fame-building activities. Mike Perlman had his first full year as Chief Commercial Officer, with global remit for commercial success, while being based in the US. His leadership has seen System1 step change the pace and structure of the commercial business as well as recruit in top talent to help drive forward our success. We won 310 new clients, delivering £8.1m of new revenues primarily in the US and the UK, reflecting our focus on the largest markets. Our go-to-market focus has seen real success in specific sectors such as Food and Beverage, Tech and Retail. As always, we are not permitted to name many of our clients, and new wins in the period included: TikTok; a global market leader in enterprise application software; one of Britain's leading retailers; a US manufacturer of carbonated beverages; a large, global investment management firm with US$20 billion in annual revenue and a global flag-carrier airline. With 99% of our new revenues coming from our strategic platform of predictions and improvements, we saw clear evidence that our proposition meets the needs of the world's largest brands and they have less reliance on bespoke consultancy. 5 We scale up and are embedded throughout the world's largest brands We saw continued excellent levels of revenue growth, with total revenues up 25% and platform revenues up by 39%. Our platform Net Revenue Retention improved year-on-year to 106%, with our FY24 customer base increasing their spend across our platform offer. 310 new clients in FY25 Concentration in our top 10 and top 20 clients was consistent year on year. Our top 10 clients made up 31% of revenue and our top 20 clients 42% of revenue. The proportion of spend from the top 20 clients on platform products and data-led consultancy increased to 90% in FY25 from 78% in FY24 with 18 of our top 20 clients buying these services. No one client's revenue in FY25 represented more than 10% of System1's revenue. CEO's Statement continued Total Revenue = £ 37.4m 2% 5% consultancy 0% consultancy Bespoke L D o at r a e -le m d ipsum 14% 2% 54% Data 23% How customers buy FY25 (Value %) The majority of System1 revenue comes from the world's largest brands who follow our model of test and improve, buying data and data-led consultancy. In FY25 71% of total revenue came from the 34% of clients by number that purchased both data and consultancy (vs 75% from 40% in FY24). Conversely, just 23% of Group revenue came from the 60% of clients by number that purchased only data (vs 16% from 51% in FY24). We are incredibly proud to serve some of the world's largest brands, as we work with 5 of the top 10 US brands and 8 of the top 10 UK brands. The opportunity to grow share of spend from these brands is high as we continue to develop relationships with them over time. Top 10 advertisers in the US and UK 6 We reinvest the results of higher volumes and margins from helping the world's largest brands make confident creative decisions In FY25, we grew profit before tax by 71%, supported by gross profit margin growth +1 point to 88% and ahead of our 85% long-term benchmark. We stepped up investment in FY25 across our people, our platform and proposition, while also rewarding our shareholders with a dividend and 120% EPS growth. People - We continued to incentivise and reward colleagues through our variable pay model, linked to growth in the Group's gross profit. This continues to be a good motivator for front line commercial colleagues as well as maintaining morale and retention across the global work force. Platform and proposition - In FY25, we increased our investment in our platform and proposition to continue to accelerate revenue growth. We maintained cash spend on our IT development and TYA premium and increased expenditure on our go-to-market teams. In addition, we have committed an additional discretionary £2m in FY26 to accelerate profitable growth and revitalise our Innovation proposition. '' I remain excited by the three big strategic growth opportunities identified last year that we continue to be laser focussed on, namely the US market, Innovation, and growing our share of business with the world's largest brands. We are just scraping the surface of the opportunities in each of these areas. '' Dividends - In FY25, the Group resumed dividend payments with a 5p per share dividend for FY24. We are proposing a total payout of 11p per share dividend for FY25, split equally between ordinary and special dividends, subject to shareholder approval at the forthcoming AGM, reflecting our confidence in the prospects for the business. 7 We have a robust support structure and performance culture that allows us to help the world's largest brands make confident creative decisions Conclusion: FY25 has seen System1 maintain highly motivated teams with strong retention and employee engagement, through our performance culture. We have created an environment where all colleagues can work together, focus on adding value to our customers. We actively remove the blockers from our teams' day-to-day lives and have seen staff happiness improve on record levels from FY24. In addition, System1 has been recognised as a Great Place to Work® in both the US and UK, while being awarded "UK Best Workplace for Development". In parallel, we were proud to receive the AIM Governance Award 2024, which recognises companies that lead the way in transparency, Board leadership and building long term value. This is a strong endorsement of how we run the business and the standards we hold ourselves to, both internally and in the eyes of our investors and the wider market. Conclusion: we have momentum to grow in a massive market and continue to invest I remain excited by the three big strategic growth opportunities identified last year that we continue to be laser focussed on, namely the US market, Innovation, and growing our share of business with the world's largest brands. We are just scraping the surface of the opportunities in each of these areas. With our strong balance sheet and business health, we are accelerating our investment at a time when we believe some competitors are scaling back investment. In December 2024 we announced £2m of investment in medium term growth during FY26 in addition to existing commitments in strategic growth areas including such as AI. Importantly, we maintain a focus on cash-flow and margin to ensure we balance growth with business stability. We have provided an up-to-date outlook for the business in our July Q1 trading statement. Finally, thank you to our customers for their continued commitment to world class marketing with confidence in their creative, to our shareholders for their continued support, to our staff for their dedication and focus, and to our Board for the strategic direction and backing. James Gregory Chief Executive Officer 9 July 2025 Financial Review Overview 2025 2024^ ("FY25") ("FY24") Change Change* £m £m £m % Results for the year ending 31 March Platform Revenue** 34.5 24.8 9.7 39% Other Revenue (Bespoke consultancy) 2.9 5.2 (2.3) -45% Total Revenue 37.4 30.0 7.4 25% Direct Costs (4.5) (3.9) (0.7) 17% Gross profit 32.9 26.1 6.8 26% Operating costs (28.0) (23.4) (4.6) 19% Other operating income 0.4 0.4 0.0 -8% Profit before tax 5.3 3.1 2.2 71% Tax charge (0.8) (1.1) 0.3 -23% Profit for the financial year 4.5 2.0 2.4 120% All figures in the Financial Review are presented in millions rounded to one decimal place unless specified otherwise. Percentage movements are calculated based on the numbers reported in the financial statements and accompanying notes. * Year-on-year percentage change figures are based on unrounded numbers. ** Data and data-led consultancy 2025 ("FY25") 2024 ("FY24") Change* Key performance indicators Platform revenue growth 39% Number of clients 563 Gross profit % Revenue 88% Adjusted profit before tax 1 5.2 Adjusted EBITDA £m 2 6.6 Adjusted EBITDA % Revenue 18% Rule of 40 3 57% Free Cash Flow (FCF) £m 4 4.2 Net Cash (£m) 12.9 Diluted earnings per share 35.2p Ordinary dividend per share 5.5p Special dividend per share 5.5p 43% 428 87% 3.1 4.4 15% 57% 4.0 9.6 16.0p 5.0p - -4 points 31% 1 points 68% 52% 3 points 0 points 0.2 34% 120% 10% nm 1. Profit before tax plus share-based payment expenses 2. Profit before tax + share-based payments (inc. associated social security provision) + interest, depreciation and amortisation 3. Platform Revenue growth %+ Adjusted Group EBITDA % Group Revenue 4. Cash flow after interest and before debt raising/reduction, buybacks/dividends 20 +28% 15 +49% 10 5 US UK FY24 FY25 Sales Revenue: Strong progress in largest geographic markets (ß million) Revenue performance Total Revenue reached £37.4m, up 25% on FY24, and Platform Revenue rose by £9.8m (39%) in the year to £24.6m, due mainly to continued strong growth in automated ad-testing revenues (Test Your Ad). Data-led consultancy revenue rose by 42% with clients of Test Your Ad wanting to understand how to further improve the effectiveness of their creative content. Overall platform revenue represented 92% of total revenue in FY25, compared with 82% in the previous year. Other Revenue, primarily bespoke consultancy, fell by £2.4m in the year, as customers continued to adopt the standard platform products, and the company focused its resources accordingly. 40 +39% +38% 30 20 10 Platform Comms (TYA) revenue FY24 FY25 Revenue growth driven by platform and TYA (ß million) The Communications (Comms) product group, including Test Your Ad, grew by £8.7m (38%) year-on-year, driven predominantly by the US, where Comms revenue grew by 68% year on year. Comms revenue, including ad-testing, accounted for 84% of all revenue in FY25 (FY24: 76%) Innovation revenues decreased by £1.2m (29%), and Brand Tracking revenues were down by £0.1m (3%). The geographic spread of the business has shifted year on year with the US increasing its share of Group revenue by 5% to 34%, and a corresponding decrease in continental Europe. Revenue in the UK rose by 28% and accounts for 43% of the total. Direct costs Direct costs increased by 17% year on year on Revenue growth of 25%, reflecting the continuing growth in the proportion of Platform Revenue and efficiencies in the supply chain, including further investment in automation. As a consequence of these improvements the gross profit margin rose by 0.9 points to 88%. 88 87 FY24 FY25 Gross Profit Margin helped by Platform (percent) Operating costs Total operating costs increased to £32.9m (FY24: £23.4m) due mainly to employment costs (headcount increased 16% year on year), increased customer Financial Review continued Employment costs rose in line with headcount 20 15 10 5 180 160 140 120 100 80 60 40 20 FY24 FY25 Salary & benefits Variable pay Average FTE Employment costs 2m Average FTE acquisition costs, lower net benefit of capitalised IT development costs, and foreign exchange translation effects on non-sterling debtors and bank accounts. Some £3.2m was invested in development and innovation during the year, related primarily to the marketing predictions platform, automated prediction products, TYA Premium database, and AI-related research and development (FY24: £3.1m). Average employee numbers rose from 144 in FY24 to 167, attributable to growth in the commercial, marketing, product and research & guidance teams. In December 2025 we announced an additional £2m investment aimed at building our position in America and revitalising System1's Innovation proposition. Some £0.1m of the additional investment was spent in the final quarter of FY25 Profit before taxation Profit before taxation for the year of £5.3m was £2.2m higher than the previous year owing to higher sales volumes and improved gross margins, more than offsetting the 19% increase in operating costs. Taxation The Group's effective tax rate decreased sharply from 35% to 16%. This is due mainly to the impact of UK R&D tax credits in respect of FY23 and FY24, which have been surrendered for group relief in FY25. Excluding these R&D tax losses, the effective tax rate for the Group would have been in the region of 30%. The Company intends to submit an R&D claim for FY25, however following legislative changes to the UK R&D regime effective from 1 April 2024, any amounts received will be reflected in pre-tax earnings and subject to corporation tax. Accordingly, the Company expects the effective tax rate in future periods to be in the region of 25% to 35%. Funding and liquidity Cash balances rose by £3.3m from £9.6m to £12.9m, broadly in line with the £4.0m free cash flow minus the £0.6m dividend paid during the year. A second consecutive year of strong cash generation reflected increased profitability and improved collections - details in Note 10. Of the £6.2m cash generated from operations; £0.6m was invested, including £0.5m in capitalised software development; and £0.8m was spent on property leases including imputed interest. A weaker US$ across the period compared to FY24 reduced the year-end value of non-Sterling cash balances by £0.3m. 15 FY24 Special FY25 Ordinary Dividend per share (p) Dividend 5.5 10 5.5 5 5.0 Following the resumption of a dividend last year, the Board is proposing an ordinary dividend of 5.5p per share for FY25 (FY24: 5.0p) and an additional special dividend of 5.5p per share. The proposal will be put to the Group's annual general meeting on 24 September 2025, with an ex-dividend date of 25 September, record date of 26 September and payment date of 17 October. The proposed combined dividend payments represent ca 31% of earnings. Chris Willford Chief Financial Officer 9 July 2025 Principal Risks and Uncertainties The Board is responsible for reviewing risk and regularly reviews the risks facing the Group, as well as the controls in place to mitigate potential adverse impacts. The risk register is assessed at every monthly Board meeting. The Audit Committee reviews the effectiveness of financial controls. The Board endeavours to identify and protect the business from the big remote risks: those that do not occur very often, but which when they do, have major ramifications. The types of event that we are concerned about and seek to manage are summarised below. Risk Area Potential Impact Mitigation Loss of a significant customer Revenues and profits fall due to the loss of a large customer We work with more than 500 customers and work hard to earn their loyalty. Our customer base is diversified such that we have no customers contributing over 10% of revenue. Loss of key personnel Key personnel leave the business, taking knowledge and external relationships with them We seek to ensure that System1 is as attractive to existing employees as it is to talented external recruits. Reward is competitive, and regular performance evaluation identifies individuals who may be "at risk". For the most senior executives, the LTIP (long-term incentive plan) and STIP (short-term incentive plan) are designed to provide a strong financial motivation to stay at System1. These incentives are reviewed periodically to ensure they remain effective. Loss of a critical supplier The bankruptcy, change of control or resignation of a strategic supplier leaves the Company unable to meet customer demand We have several mission-critical functions carried out by third-party suppliers (such as panel suppliers). For these functions, we seek to ensure we are not too reliant on any one organisation and typically have three qualified providers. We work in close co-operation with our strategic suppliers, ensuring that any issues and concerns are surfaced rapidly and resolved in partnership. Loss of assets, data, intellectual property Theft of intellectual property via unauthorised or illegal access to or copying of the Company's databases, proprietary methods, and algorithms We endeavour to protect the business from significant risks, through a combination of trademark protection; insurance; development of internal guidelines and policies; comprehensive information security programme, and our employee, customer and supplier terms and conditions. Litigation risk Legal action is taken against the Company by customers, employees, suppliers, or other stakeholders We endeavour to protect the business from significant risks, through our terms and conditions, trademark protection and comprehensive professional indemnity insurance. Principal Risks and Uncertainties continued Risk Area Potential Impact Mitigation Strategic risk Technological advances including artificial intelligence reduce the commercial viability of the Group's methodology The Group positions itself as "the most predictive" provider of information to support creative and marketing decisions. Currently a combination of real-life panel respondents and System1's methodology achieves this goal. Our S1 Futures programme includes an exploration into how AI could transform predictive research. The Group does not compete effectively in the largest and faster-growing markets The Group formally reviews product and geographic markets as part of its regular strategy review. We have increased our presence in the US to reflect the significant opportunity in that market and are relaunching Test Your Innovation in order to improve our performance in the largest of our chosen product markets. Operational risk An outage or other technical issues on our survey platform results in delays in delivering customer projects All our services are hosted on a secure external cloud infrastructure with multiple failover options. We continuously monitor system availability and endeavour to alert the customer to any delays on the rare occasions where there is disruption. A reduction in panel data quality affects the company's reputation with key customers We conduct both operational and strategic reviews of respondent quality in close collaboration with our approved panel suppliers and can switch provider where required via our platform API. A cyber-attack causes a material breach to our infrastructure Our business does not ordinarily hold non-employee personal data. Any personal data of clients' or suppli-ers' employees is held by System1 in compliance with the applicable legislation. We have invested in our controls (including penetration tests), processes and IT infrastructure and have held ISO 27001 accreditation covering information security since 2019. The volume of change initiatives could lead to a loss of operational control All change initiatives are subject to project governance, and development is run on an "agile" methodology. The Executive Team reviews operational performance regularly providing early warning of potential deviations from plan. The Board reviews operational performance monthly and strategic direction regularly and when appropriate. A subsidiary incurs substantial losses The Group operates a highly centralised model with minimal delegation of financial authority below the Executive Directors. All bank payments and transfers have to be authorised by Group Finance. Financial risk Failure to manage credit, currency, market, interest rate or liquidity risk expose the Group to losses Due to the straightforward nature of the business, its international cost base, the Group's strong balance sheet, and the fact that most of the Group's customers are large, credit-worthy organisations, foreign exchange and credit risks have historically proved to be modest. Further information is given in Note 8 to the financial statements. Risk Area Potential Impact Mitigation Environmental and political risk The Group's revenue streams could be affected by customers' decisions to reduce marketing budgets The Group trades principally in the UK and the USA and is exposed to the social and economic impacts in those regions. The 2020 Covid-19 pandemic demonstrated the Group's resilience during an economic downturn. The main exposure is to our customers' decisions on the size of market research budgets in response to external events and macroeconomic factors such as inflation and interest rate increases. Shareholder relations: the Company's plans could be opposed by significant shareholders The Company holds comprehensive investor one-on-one and group meetings in roadshows at least twice a year. In addition, quarterly trading updates provide an opportunity to engage with shareholders and potential investors. Political risk through adverse regime or regulatory change The territories representing the vast majority of the Group's revenue are socially, politically, and economically stable. We do not currently service clients based in Russia or Belarus, and our operations have not been directly affected by the ongoing conflicts in Ukraine or Gaza. We have a regional operations centre in Brazil where just over 10 percent of our employees are based and are comfortable that the benefits of the operation outweigh the slightly elevated risks. Conflicts of Interest Directors' and employees' personal, financial or business affairs may result in situations where the com-pany's interests are not fully aligned with their own The Board formally records directors' interests at each meeting, and directors' new external appointments are notified as soon as is practical. Below board level the company reviews senior employees' outside interests on a case-by-case basis to ensure no detriment to the company arises. Reputational risk Press releases or other statements from the company could include incorrect or defamatory content, adversely affecting the company's reputation with customers and other stakeholders All trade press releases are reviewed by at least one member of the Executive. Financial releases are reviewed by at least two Board members and our Nominated Adviser. Comments or articles posted by employees on social media could adversely affect the Group's reputation with customers and other stakeholders The Group has a social media policy which sets out employees' duty of care when posting work-related content on social media. Environmental and Social Report Section 172 Report Section 172 of the Companies Act requires the Board to take into consideration the interests of stakeholders in its decision making. This section provides information about the Board's approach to engagement with stakeholders, namely: Customers Talent Investors Suppliers Community and Environment. In determining the Board's approach, the Board members have regard to the following: The likely consequences of any decision in the long term The interests of the company's employees The need to foster the company's business relationships with suppliers, customers and others The impact of the company's operations on the community and the environment The desirability of the company maintaining a reputation for high standards of business conduct, and The need to act fairly as between members of the company. Overarching the Group's approach to all stakeholders is System1's cultural pyramid: System1 and flexible (modern working) Environment T.I.D.E. team behaviours, personal behaviours & trust Behaviours Top talent, managed & developed expertly, clarity of expectations Capabilities Customer Commitment, Creativity, Collaboration, Conviction Beliefs & Values To give marketers the Confidence to make the most effective Creative decisions The Marketing Decision Making Platform that harnesses the power of emotion to drive growth for the world's leading brands Mission Identity System1 | The Culture Pyramid Customers Our target customers are the world's largest brands. The board understands the importance of forming and retaining good working relationships with its existing and target customers. These customers understand that creativity is the most powerful tool for growth within their control. The power of creativity for growth could be considered our industry's most fundamental reason for being. Creativity is a superpower. Marc Pritchard, P&G Chief Brand Officer System1 helps these companies make confident creative decisions that lead to transformational business results. Our advertising and innovation tests measure emotion to give our customers the most accurate predictions of the business impact of creativity. We also provide expert guidance to our customers to help them improve the effectiveness of their ad or innovation. Section 172 Report continued Talent In April 2024, we adopted a Flexible Holiday policy, following a successful trial in FY24. This builds on our Flexible Working approach and Flexible Benefits platform, giving employees greater autonomy in how they choose to work and rest. Feedback has been overwhelmingly positive, with many highlighting how naturally the policy fits into our ways of working - supporting a culture that trusts people to manage their time and energy in the way that delivers their best. This approach is reflected in our Great Place to Work® ("GPTW") results, achieved in 2024 across the UK, EU, APAC, US and Brazil. Notably: 94% of employees in the US say System1 is a great place to work (vs. 57% for a typical U.S. company) Employees globally say they can be themselves at work, feel genuinely cared for, and trust the leadership team Our people describe a sense of pride in their work, a fair and inclusive environment, and a shared commitment to doing things the right way. How we engage with our talent We have cultural values (Customer Commitment, Creativity, Collaboration and Conviction) as well as a set of team behaviours known as TIDE, which describe how we work together. T ruth - always tell the truth… and tell it early I ntent - always assume good intent…yet resolve issues D ebate - Debate… Decide & Unite E lephant - Don't allow 'elephants' in the room… yet be empathetic in dealing with them These behaviours help us create a high-trust environment, which we know from both internal feedback and GPTW results is a critical driver of engagement and performance. We embed our values and behaviours by the following: Introducing them to all employees during their onboarding programme, as part of a 1Welcome afternoon, chaired by the CEO and Chief People Officer Making them a consistent part of all company communications and Celebrating examples of best practice with awards on our Town Halls. We conduct quarterly employee input surveys using our FaceTrace methodology to capture how employees feel about working at System1, alongside what's working well and what could improve. These surveys are reviewed by the Board and followed by team-level discussions chaired by leaders and the HR team to agree improvement actions. Our Great Place to Work® feedback reinforces that this approach is working - employees report feeling genuinely heard, supported, and able to influence change. In addition to monthly Town Hall meetings with all staff, we also host ad hoc senior management forums and run monthly workshops with managers. These meetings ensure consistent communication, alignment, and celebration -including our System1 Value Awards, where employees are nominated for living our values. We pay fairly and equitably, with no discrimination across any factor. We ensure this through benchmarking and annual salary reviews by individual and by role. There is a structured approach to career and professional development based on our leadership and departmental frameworks. This ensures clarity and consistency in expectations and performance ratings, supporting a culture of continuous development. Our learning culture includes internal training, professional certifications, MBA sponsorships, and new in 2025: internal coaching.

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