Good morning. Welcome to this investor update with Konsolidator. With us today, we have Claus Finderup Grove, CEO of Konsolidator. First, there will be a presentation, and afterwards a Q&A, where Claus will answer all questions submitted via Stokk.io. We have already received some questions on Stokk.io, and the Q&A is still open. I will now hand over the mic to Claus for the presentation. Claus, your line is now. Thank you very much. My name is Claus Finderup Grove, and I'm one of the three founders of Konsolidator, and I will give you an introduction to both the company, where we see financial consolidation will go in the future, and where Konsolidator as a company and product will go. We are a Danish-based SaaS company. Even we are selling our product all around the world. We are also a company with people. You can see some of our colleagues here at the first slide. As I said, the agenda will be a little bit about Konsolidator and what we are and what we do, and then also looking a bit into the future, where we see both consolidation and Konsolidator as a company will go. Then I will round off the presentation by giving an overview of our capital structure and our guidance for the coming years. First, Konsolidator. We are a company that was founded by me, one of the founder, and I have 20 years of experience as a CFO and controller before I founded Konsolidator together with Jack and Lars. Our ambition is to be the preferred financial consolidation tool in the world. The mission we have, that is that we believe that with Konsolidator, we can make CFOs and auditors better by using Konsolidator. That's our aspiration, and that's what we are working for every day. Right now, we're listed on Nasdaq First North, which we came onto in 2019, and at our latest quarterly report, we had 260 customers in 21 countries, and our ARR was DKK 18.6 million at that time. Currently we are 24 staff, which we expect to increase a little bit over the next coming of months. Before we get further into the presentation, I would like to explain you what consolidation is. Some of you attending this webinar are new to Konsolidator, and I can also see that there are some who has seen us before and also some who knows what consolidation is. For those of you who do not know what consolidation is, I will try to give you an idea of what the concept of consolidation is. The concept of financial consolidation is actually fairly easy to understand because what we do is that we are taking the subsidiaries in a group and add their account together to a group sets of account. In a nutshell, the only thing we are doing that is actually adding numbers together from subsidiaries to a sets of group account. The good thing about that is that it's fairly easy to understand what we are doing, but the actual process is fairly complex, and that is, of course, what our system is solving. The principle behind consolidation, adding the subsidiaries together to a sets of group account, is the same all over the world. The complexity of doing the consolidation is the same in all countries, and that's the reason why Konsolidator resonate very well to all countries in the world, because there is no local gap or anything in the actual consolidation that is handling in the bookkeeping. After the bookkeeping, then you are uploading the numbers to Konsolidator, then we take over there and do the consolidation. Whether a customer is from Denmark, U.S., or some other countries, doesn't really matter to us. The principle behind adding these numbers together are the same all over the world. So I hope with this that you have an understanding of what we are doing. We are an add-on, an app on top of an ERP system, a bookkeeping system. A little bit of where we believe financial consolidation will go in the future. Konsolidator was one of the first software companies that was born and built in the cloud for financial consolidation. We had systems built and implemented in the nineties and in the Xero, which were on-premise system and dependent on consultants. Konsolidator was one of the first, which was born in the cloud and was built on simplicity and less dependency on consultants. That's where we are still, and we are still one of the only one that have that kind of concept. Of course, it's also important to look on how does the future look like for consolidation system, and we also have a take on that. We kind of add the future into four different things. One thing is that AI, ChatGPT, is something that we are also looking very seriously into. We believe that our customer can get value from having ChatGPT built into Konsolidator. One of the first thing that is what is called a mapping. Just to give a small idea of what that is, that is that all our customers, they make their bookkeeping in their local chart of account, in their bookkeeping system, upload those numbers to Konsolidator, then we map those into one set of group account. If you have one chart of account in Denmark and another chart of account in Sweden, then you need to map that to one set of chart of account, so we can add those together. That OpenAI can do much, much easier. For example, today, our customers might spend 2 to 3 hours to do the mapping, and with ChatGPT, we have already built that, it will only take 2 to 3 minutes. That's just the first way where we can give add value to our customers by using OpenAI, and hopefully that will be implemented in our software here in June. That's just the first step, but there are other areas where we can see that the OpenAI can add value to our customers. That can, for example, be on budgeting and forecasting or on cash flow reporting, where we can maybe or where OpenAI can predict the future, or at least give a suggestion to the future better than what a human can do. That's probably going to be some of the next step in OpenAI. There's also these words called API, which I also like to explain a little bit, because that area goes also fairly fast. What that is that in the past, customers, they downloaded a trial balance from their bookkeeping system and uploaded that to Konsolidator through Excel, downloading a trial balance to Excel, go into Konsolidator, and then uploading this Excel spreadsheet. With the API, you can just make a connection directly from a bookkeeping system to Konsolidator, which again, reduce the time and reduce the risk of errors in the uploading process tremendously. We have today built, I think it's eight integration from different ERP system like Microsoft Business Central, like e-conomic, like Fortnox and system like that. We will continue to build integrations for these cloud ERP system. Another thing is the next word that is called ISV, that stands for Independent Software Vendors, that means that you can sell through App Store. These bookkeeping system, like Business Central, like e-conomic, they have an App Store where Konsolidator can be on, then we can promote our product to their customers and hopefully sell through that App Store. We are spending some time on understanding and knowing how these bookkeeping system are selling through their App Stores. That is called ISV, Independent Software Vendors, especially Microsoft Business Central and Microsoft F&O, we are spending a lot of time on understanding how they are selling their solution, because we can be an add-on, an add-on app to their bookkeeping system. The last thing on the API, that is a data warehouse. Customer today, they not recommend, they require that they can get access to a lot of data. Data from CRM system, ERP system, consolidation system, and all kind of other systems. Rather than having all kind of different ways of getting the data, they want to gather these data in a data warehouse. We also have need to have our response to that. How can we be integrated in these data warehouses? We are also spending time on developing Konsolidator into a financial data warehouse. Visualisation, the next point, that's another thing. In the past, which is like 2 years ago, all finance people, they reported their financial reports in Excel spreadsheet, PDF and Excel spreadsheet and sent to management. The future, that is, much more visualised, either in BI tools or in Power BI solutions. You can see your report not only in numbers, but also through graphs and figures. Again, we also need to have a response to that. How can our customers present their data in a more nicer way than they do today? The last point on this slide, that is ESG, that's an area which is also moving very fast, especially from our largest customers who are required to report ESG numbers at the end of 2024. Again, Konsolidator need to follow our customers and try to understand what do they need in order for them to report on the ESG. Our at least short-term response to that is to improve our current KPI module, so we can gather all the data which is required for the ESG reporting, and our customers can consolidate their ESG numbers and report on ESG in their annual account. That is some of the very important things that we believe is important for a product like Konsolidator to have a respond on and to follow how the technology is moving ahead. Obviously, for these points here, we have a respond and we have an answer to where can we add value to our customers. Taking this how we see the future on the technology and requirement, where would that take Konsolidator? I have a fairly, you can say large, maybe a little bit complicated slide here, but I'll try to explain it because it's important in order to understand Konsolidator and, you can say the potential of investing in a company like ours. If you're starting to the left, where it says Konsolidator Classic, that is where we are today, and in what that is all about, that is that we are trying to generate some interest out in the market by digital marketing, that go out there and promote Konsolidator and tell about our values. When someone find interest, they book a meeting with us. A sales rep will have a sales meeting with these potential customers. Some of these customers will sign. We will onboard them. Later on, we will try to sell some more products to them through up-sales. That's a classic, what is called funnel, where you are focused on generating awareness, have meetings, and then sign some contract. Probably around 95%-98% of all our customers is coming through this funnel, and that's why you have sales reps running after potential leads and trying to convert them to customers. That is fine. That's our bread and butter, where we generate our revenue and ARR today. If we want to have this tremendous, what we call a ketchup effect, exponential growth, then we need to be, we need to find a way where we can sell through partners or through auditors. We are spending a lot of time on trying to find out how can we sell through auditors, and how can we sell through partners? One thing that's audit, that's the one in the middle. Some of you might know we have PwC Denmark as a customers who are using Konsolidator for their clients when they're doing the annual consolidation, that's both at a strong revenue generator, but it's also a strong, what is called, customers who can prove the quality of consolidation. When an auditor like PwC are using our software, of course, that's the ultimate stamp proof that the quality of Konsolidator is high. Auditors are also extremely important in this to kind of get the proof of our quality. I rather want to go further out to the right, saying Konsolidator through App Stores, because as I said, we are on e-conomic App Store, we are on the Business Central's App Store, but we need to understand better, how can we sell through these channels? We are actually looking for a person who can be in charge of, what we call channel sales. Sell through Business Central partners in order for us to generate much more sales without the Konsolidator Classics and through the normal channel. If we can succeed in the one to the right, then we will do much, much better, grow much higher, faster, at a lower cost. We are spending a lot of time on understanding how does a Business Central partner make value to their end users? How can we sell through Xero App Store? How can we sell through the e-conomic landscape? We haven't been successful on that yet, we hope that we will one day break through on this extremely important market we have there to the right. With all these things we saw on the previous slide, with AI and APIs and ESG, we are spending a lot of time to see how can we create values out there to the right, through those app stores. Yes. Moving on, the way we look at the way we want to grow, so when we have these three funnels and we have this future, okay, how do we then want to adapt that into our company? The three main focus we have when we are talking about growth and when we are talking about market, that is that it has to be integrable. We need to be able to integrate two systems, because Konsolidator is an app on top of other system. We are not a day-to-day system. We are a system that is used at the end of the month to do your monthly reporting. It's important for us to be integrable to all kind of different system. The better we can integrate with other system, the more value we can create to the customer. We are moving from being still a system that needs to be onboarded by people from our onboarding team, and we will still be that for the larger customers, but we want to be a plug-and-play system for the smaller customers. The easier it is for customers to start using Konsolidator, the faster we can grow. We also have to be profitable. Of course, it goes without saying, but the world has also changed there. 2 years ago, it was all about high growth, and you could have a negative cash flow. That has changed. With the increased interest rates, you need to prove, both to yourself, to your investors, but also to your customers, that you are and can be a profitable company. That's something that is extremely important to us also, and we have guided that we will be profitable as from next year. All this together, both being integrable and profitable, you still have to be a scalable company. A SaaS company like ours, which has the world as the playground, it of course has to be a business model which is extremely scalable. All these three things are what is in everything we do, no matter whether it's in development or whether it's channel sales or whatever it is, it has to fit into these three boxes. That is the way we believe that we can grow fast, also in the future, and are also profitable. Moving a little bit into, you can say our capital structure, and then our guidance for the future. Starting with the capital structure, again, some of you has follow us and some of you has not. Let me explain. We was founded in 16, grow fairly slow in 16, 17, 18. Decided to get listed in 2019. We got listed on Nasdaq First North in 2019, and then grow very fast with the negative cash flow from 2019 and until today. What has happened both with the market and with Konsolidator is that now we want to grow profitable. We made, you can say, not necessarily say our last capital increase, but we made a strong capital raise here in the first of June, where we got in DKK 18.5 million in equity, where management also contributed with DKK 3 million. We got a loan of DKK 15.5 million from Vækstfonden and from a family office called 2L Holding. We have a loan today with a company in Aalborg of DKK 25 million, and they have converted DKK 25 million of those to DKK 22.5 million. What we will spend this money on, DKK 36.5 million, is to repay the current loan back, and then what we will have left, that is a loan of DKK 15.5 million. Our capital structure in the future is very strong because now we have a loan of DKK 15.5 million, which we can pay back through our operating cash flow. Now we have a very solid capital structure for the future, and we are knowing what we have, and we're knowing where we are going, and we can take Konsolidator within that operating cash flow for the future. You can also see when we announced that we will run after capital, we said that the goal was DKK 30, but we got DKK 36.5. Now we have a bit more to inject into our growth. Still, as I said many times before, it will be a profitable growth from here. Now we have the sufficient cash and equity for that. The last slide, that is the outlook. This is also the outlook that we have announced with our annual report. If you look at in 2023, starting with that, we expect our ARR will end out in something between DKK 21 million-DKK 23 million, and we have already announced that the Q1, that was DKK 18.6 million. You can see we are on the right track to meet that goal. The revenue will be between DKK 20 million and DKK 22 million, and we are also on the right track for that. Further down you can see we have something called EBIT and something we call EBIT adjusted. I will explain that, but if you look at EBIT adjusted, which is the one that we are looking most at, then we believe we guide that we will have a small deficit compared to last year this year, and then we will be profitable from next year. The difference between EBIT and EBIT adjusted, that is that we have warrants to our employees, and warrants under the IFRS reporting standards have to be booked as an expense. We have that as an expense, which is not a cash flow cost. In under the EBIT we have the warrants, whereas at EBIT adjusted, we have excluded the warrant as there are no cash flow in these warrants. You can see that we expect a growth this year of 20%-30%, and then next year, a bit lower, 14%-22%. Over the past, what is that? 6 years, we had a growth of a little bit less than 50%. We continue to be a growth company, and obviously we have only budgeted with growth from what we call direct sales, the one called Konsolidator Classic. We have not included anything, neither from auditors or from the ERP channel. Hopefully we can break that channel, those income streams in the next couple of years. Hopefully we can do better than the guidance. This is what we feel comfortable with to guide on, as we don't know when we break through the channels or auditors. That was the presentation. I think we will open up for questions. Perfect, Claus. Thank you for that. Let's start off with the questions that has come in, and maybe let's start with the financial-related questions when we ended with that. The first question here is: In the results of Q1, it is mentioned that 10 new customers signed from January until March. What was the net increase of customers taking into account the churn? Compared to previous quarters, there are fewer Danish customers that signed up. Is there a particular reason why the performance of the home market is somewhat slower/lacking? There are two questions here. There are two questions there. I think we lost 6 customers in Q1. So the net that was, is that 4 then? So, yeah. So, yeah, so that's, that was the net increase. The Danish market, if we're moving on to that, Danish market is by far our largest market still, also because of our history, started in 2016 and only selling to Denmark in the beginning. I would like to explain a little bit more on that. I mean, when we started Konsolidator, we knew that Denmark alone would not be big enough a market for a product like ours. We are talking about what you call top total addressable market. The total addressable market in Denmark is something between 2,000 and 3,000 potential customers. Now we have, I think, 150. We are, you can say, already close to 10% of the total addressable market for us in Denmark. When you are at that level, then it takes a bit longer to grow. We're still growing in Denmark. One of the reason why it's taking a bit slower now is that we resonate very well on cloud ERP. When a group, a company has decided to move on an on-premise ERP system to a cloud ERP system, they have also said, "We are on a cloud strategy," and that is what Konsolidator is, as we are on the cloud. Those that we are converting now, that is mainly customers that are, or companies that are going from on-premise to cloud. Our pipeline in Denmark is very large. We have a lot of potential customers we are in dialogue with, but are also kind of waiting until they are on cloud, because if they are in a project of moving from a Navision solution to a Business Central solution, that's a huge project. They decided, "Okay, let's wait until we are fully on BC," which I must also admit that that does make sense, so you don't take too many products. To make this short question a long answer is that the Danish market goes a little bit up and down, but the pipeline is there, and we are still a dominant factor in our segment. We believe that Denmark will continue to support our growth. yes. Yeah. I hope that was a okay answer. Yeah, I think it was. There is a question around the profitability. It says, "Profitable from next year? Previously, we have been told that would happen already mid this year." Can you put some explanation around that? Yeah. Not mid this year. We have said, and I'm, we're still saying that we are hoping and trying to be profitable in Q4, and we are still trying to be that and working hard on being profitable in Q4. For the full annual account, that has always been from 2024. It's either going to be Q4 or 2023 or Q1, 2024. That has always and are still the ambition. Okay, perfect. The next questions is more around the product part. First of all, around the AI, what is the main risks with the high growth and fast-moving AI field? I think the largest risk is not to finding out how you can adapt to AI. I personally believe that the AI is going to be as game changing as the internet was 30 years ago or 40 years ago, when, whenever that was, and I think it's going to be much faster than the internet. I think that all companies, they have to embrace AI and find out how can they both include that in their company product, and also how can they generate value to the customers. For Konsolidator, yeah, the risk is not doing anything. Our response is that all departments in Konsolidator are playing around. It's still very new with the AI. As OpenAI, which is Microsoft name for it, will be included in the Office package in Q2, actually, as we speak. We should just recognise that our customers will start playing around with it, so we should again embrace it and see how we can add value. As I said earlier in the presentation, we are already now starting by doing the mapping with OpenAI and give that out to customers here, hopefully, during June, or at least early July, but hopefully soon. Yeah, that's our response. We can see other areas where we can add value to customers through OpenAI. Do you expect to see increased competition in the market based on new technology? Yes, yes, I do. What I do see is that, for example, I talked about visualisation. I do see that some BI products, they are doing very strong visualisation, that they are also now, you can say, selling something, what we call aggregation, but which adding numbers together, and then they call it consolidation, and sell that. I do see. And that's actually a visualisation product, but they can add numbers together, not do an actual financial consolidation, but that can be enough for some customers. What I do see is that technology can be used for different in different ways, and then, yeah, go out and promote that. Yes, new technologies will definitely be competitors, and they already are, yeah. Our response to that's being agile. I think it's very, very dangerous to focus 100% on any market, no matter whether it's Denmark, Sweden, or England. Our response that is that we are very agile, whether we get a customer in Congo or in Köln, that's the same for us, and that's, you can say our response to the, you can say, the threat of competitors, which of course, will always be out there. On your website, you mentioned that you integrate to Fortnox, but Konsolidator is not shown as an integration on Fortnox's website, only konsolidering.nu and Otisco is shown as consolidation solutions. Why is that, and how is Konsolidator different than these two? The why, that's resources. We are still a fairly small company, so we have not resources to run after all the integration. We have the integration to 8 systems. Today I think we are on the App Store on Xero, Agresso, huge software, e-conomic in Denmark, and Business Central. Right now we are on those 3 app stores. We will eventually be on all the others as well. That's resources. The only good thing about being only on limited, that is that we will get a lot of experience from those 3 before we enter into the next. It should not be an excuse. If we had the resources, we would like to be on all the 8 immediately, but it takes actually quite some time to be accepted and be there and tested, and before you can go on the app stores. Fortnox, we have just initiated the dialogue with them, so it could be the next one. I'm not guarantee it could also be F&O. We are in a very early dialogue with the Fortnox because we have a lot of Swedish customers that are using Fortnox, so it definitely makes sense. Our Swedish customers, they of course know we have the integration, and they are using our integration. It's not that they cannot use it. They can use it, and they do use it, but it's not a marketing commercial thing. Of course we should be on the App Store, that's resources. Those two you mentioned, I don't know them, I must admit. I don't think they are strong product. I have never met them in any sales meetings in Sweden, so I don't know who they are. They are, again, there are a lot of those fairly small consolidation system, and they are what we call aggregation system, meaning they can add numbers together. They can probably also do currency translation, but they cannot do the very complex part of consolidation, which is like making the exchange rate adjustment and calculate the value of your assets in foreign currency and make that adjustment, make the minority interest elimination, and make the advanced inter-company elimination. They cannot produce cash flows and stuff like that. Normally, again, I don't know these two, but normally they can do the simple one, but not the advanced one, where we can do the advanced one. Normally, that's the difference. I don't know these two, specifically these two. Yep. Okay. How will you make sure that consolidation will not become a feature on established ERP and financial reporting platforms due to emerging technologies? How do you plan to ensure Konsolidator will be the preferred choice? A very good question because there's always a risk. There's actually many answers, different answers to that question. Starting with the feature, we actually want to be a feature in Business Central, so we actually now planning to be an embedded solution into Business Central. When a customer goes into Business Central, then they can see something, consolidation up in the corner, and they can click on that, and then it's a Konsolidator software that's behind the scene. That's called embedded solution. That is possible in F&O and in Business Central, not in some of the smaller one. There we actually want to be a feature, but our feature, and that's possible. Then there was also a question regarding... What was that? What was the second part? How do you plan to ensure Konsolidator will be the preferred choice? Yeah. One of the big difference between us and the other, I mean, there are, of course, consolidation tools out there, like OneStream and Hyperion and Cognos, system like that, they are very strong consolidation tools also. The difference between them and us, besides we being cloud and they are being, on premise, mainly, that is that we are built more on a concept of being very rigid in debit and credit consolidation. We have always seen ourself as a system that is extremely strong on 100% correct consolidation with debit and credit. You cannot do it... Now, it's getting a little bit technical, but you cannot make what we call one-leg postings in Konsolidator. Everything has to tally before we are moving on. Our consolidation is from a bottom-up approach. That fit to some customers, and that are those customers we are running after. That is one of the reason why the auditors likes us and recommend us, because we are so rigid in the way we are doing the consolidation. Again, that fits for someone and for those that fit, that are of course, those that we are running after. I don't see many of our competitors having that approach. Still, we are the one who are focusing on 100% correct consolidated numbers. For now, we have the last question here. Looking at the latest press releases, a lot of focus has been around the capital increase. Now, you have finalized this process, how do you expect to spend the cash you have received, and how will you ensure that the cash injection can take you to break even in the coming years? First, yes, I've spent a lot of time on that. I've had more than 200 investor meetings over the past, 2 or 3 years, I'm of course, personally very relieved that now that has succeeded. That has been a long, strong battle, and as you probably all know, the capital market has been a little bit challenged over the past years. That, of course, has been difficult. Now with that is done, I can focus in 100% on the business. You can say what we will spend the money on, that is on growth. As it has to be profitable growth, we want to do it profitable, you can say that the profit we will generate from 2024 will be reinjected in the company. As our, you can say our Konsolidator Classic, the direct sale, that is working, we have a funnel. Its conversion is fine. There, if we want to have a new sales rep there, for example, that person can come in and be profitable after 1 year or something. That we kind of know and we can predict. The uncertainties is more over in the part of the ERP channel partners, there we will spend some time and money to see how we can get a breakthrough in that channel. That's where we will spend the main money and time, you can say additional time and money on. If that answer the questions? Yeah, I think it answers it. That was all of the questions. Now I will hand over the mic to you for the final remarks, if you have some, Claus. Yeah, I just want to say thank you. This is the first time I present a consolidated on the Stokk.io, so I hope you have liked what you have seen. Again, if you have any questions or any comments, anything, you're always welcome to contact us or me directly for any positive or negative feedback or other questions. Thank you, have a great day to all of you!