Good afternoon, welcome to today's presentation of Penneo's Annual Report 2022 with the Penneo CEO Christian Stendevad and CFO Casper Christiansen. Before I hand over the call to you, Christian and Casper, I would just remind the audience that you can ask your questions as always. You can do it below the video. I will ask all the questions to Christian and Casper in the Q&A session at the end of the presentation. As always, you can ask both in Danish or English. I will make sure to translate it to the best of my abilities, yeah. Without any further ado, I will give the word to you, Christian. Thank you very much, welcome to everyone to this session of where we're presenting our annual report for 2022. We have really been looking forward to today to be able to present our very detailed report. This is our first report after we have moved to the main market. Together with me, I have Casper here, and I will take some of the business highlights at the beginning, then when we dive into the numbers, then Casper, he will give some detailed notes about that. Then as from the outlook point of view, then I will return and then look ahead into how we look at 2023, and then at the end, we have our Q&A session. First, a very, very short introduction to Penneo. We had a deep dive earlier this year. A lot of the details of our business model can be found there. A very high level of who we are is Penneo is a company that was founded in 2014 by entrepreneurs with an ambition of reduce the hassle to get documents signed by replacing pen and paper with digital alternatives. Since then, a lot of things had gone on, and we have now moved to become a business-to-business Software as a Service company with 111 employees at the end of 2022, and with more than 2,500 customers in Denmark, Norway, Sweden, and Belgium. We have a key focus on digital signing and document workflow with our Penneo Sign product, and also Know Your Customer with our Penneo KYC product that is part of supporting anti-money laundering regulation. Our aim is to become the preferred platform for audits and accounting across Europe. Some facts about 2022. In Denmark, 81% of all annual report filed to the Danish Business Authority were signed with Penneo in last year. When you look at the numbers from earlier years, yeah, then we have increased and increased over year-over-year. Across all markets, a total of 1 million Penneo Sign case files were completed, so it's really used a lot. Similar with our KYC product, a total of 40,000 client relationship were created for onboarding and verification with our platform, KYC, including the risk assessment and so on. If we look from a ESG point of view, an estimated 62 million sheet of paper were saved using Penneo Sign, which correspond to approximately 1,000 tons of wood or 2,300 tons of CO2. Let's dive into the result of 2022. First, some performance highlight for the full 2022, so the full year. The ARR amounted to DKK 71 million at the end of 2022, compared to DKK 55.5 million at the end of 2021, representing a year-on-year growth of 28%. New ARR new biz amounted to DKK 8.5, compared to DKK 9.8 in 2021. The ARR net retention rate amounted to 113%, that consists of an ARR uplift that amount to 16% and ARR churn rate amount to 4%. It is because of our rounding that the net retention rate end on 113, even though that is 16 and 4, those two numbers. The EBITDA amounted to DKK -11.1, compared to DKK -14.1 last year. As we can see, if we just took from a high level point of view, then 2022 were overall impacted by the macro environment that negatively impacted our customer buying behavior. That also led to somehow longer sales cycle for some of our larger deals. As we have expressed earlier, then in Q3, we experienced a more cautious buying behavior, which materialized in fewer and smaller deals than anticipated. This resulted also in a lower average ARR per new customer and also a lower-than-expected increased engagement from our existing customer. This buying behavior, and cautious buying behavior, overall continued into Q4. Nevertheless, we still achieve DKK 71 million in total, and that was, I would say, in line with our adjusted guidance of DKK 70 million-DKK 75 million that we provided in October 2022. If we look into Q4 alone, then we can see here at the ARR increased by DKK 6 million compared to DKK 5.2 million in 2021 Q4. If you dig into the numbers, then New Business ARR amount to DKK 2.3 compared to DKK 2.7 in 2021. The uplift amount to DKK 4.4 compared to DKK 2.7 in Q4, and the churn to DKK 0.8 compared to DKK 0.2. If I just comment on the ARR first. As a total with the DKK 6 million, then we realized the second largest quarterly result with the DKK 6 million where we ended up on DKK 71. As it can be seen here, this performance was driven by a strong ARR uplift from existing customer. That was especially due to the expansion of our agreement with Bankdata. If we look from a New Biz point of view, then the average deal size for new customers in Q4 continued to be lower than in H1, even though that it was higher than compared with Q3. We onboarded 124 new customers in Q4 2022, if we compare that with the 123, so basically the same number of new customer in 2021, thereby it can be seen that we only raised the New Biz with DKK 2.3 in 2022 compared to DKK 2.7 in 2021. Here it can be seen that you will see the number of new intake is the same, the average deal size is lower. If we look at the EBITDA, that amounted to, in Q4, +DKK 3.2 compared to DKK -0.6. It was a, in that sense, a profitable quarter. Behind the numbers, there's also a Gross Profit Margin that was around 86%. As we also when we came out with an updated or adjusted guidance here in January or February with a new guidance for EBITDA. Here we also explained that what we could see in Q4 that result in this positive number was mainly a higher level of one-time fee. A one-time fee is a result of a customer that are using our solution more than the, you can say, that originally agreed, then you pay additional one, but without increasing the total commitment to it. We had a substantial amount of that created that. In general, when we look at both the full year and also the Q4, then we do not believe that the current economic have changed our longer term growth potential of Penneo. We remain a company with a solid subscription-based business model with growing ARR, both from existing and new customer, and then a low yearly ARR churn and a relatively high Contribution Margin. We also continue to see a strong underlying market trends then translate into attractive possibility in both our existing and in our new foreign markets across the two solution that we are offering with the digital signing and the Penneo Sign and also our know our customer Penneo KYC. That was just, let me say, to put some comments from a high level. We will come back to our outlook in 2023, where we'll comment further on it. We also did a lot of other things than the financial number. Here are some business highlights of 2022, where we have accomplished some major milestones. First, our capital raise of DKK 59 million that we completed in Q1. Very happy about that. Also immediately after a successful listing on Nasdaq Copenhagen Main Market that we did in April. Following, let me say, the capital raise, then we continue our investment in our growth strategy with one of the milestone, 100 employee milestone that we've reached in Q3. In this investment in our growth strategy, that resulting a solid progress on scaling our business for growth, so creating even more professional organization with the right structure and the mix of competences, and also improved and broadened the functionality of the solutions that we are offering. We also, let me say, in our European expansion, we continue to grow from foreign market and including particularly Belgium. As we saw, we can say we established a local sales team, we could see the immediate effect after that. We did that in the second half of 2022. Overall, we gained 55 new customer in Belgium, out of it, 27, so around half of them came in Q4. It was a big help on that. We also had some key customer wins with our KYC product. We have earlier announced some Big Four, but we also had a lot of other important wins. We extended the agreement with Bankdata to cover the larger portion of their members banks end customer, and some of the member banks are Sydbank and Jyske Bank. That also solidified our market position with our Penneo Sign solution that has, you can say, is a good fit for these financial institutes. Last but not least, we got the acceptance on the European Union Trusted List. That is as a result of that we upgraded our Penneo Sign technology platform to offer the highest level of, say, electronic signature in the eIDAS regulation. We got listed here in beginning of 2023, but it was a result of all the investment that we did in 2022. That is particularly important for us because we believe it both serve as a door opener but also as a competitive differentiator in our ongoing effort to penetrate into the audit and accounting vertical and also other industries in EU countries outside of Scandinavia. A lot of good accomplishments in 2022. Let's look a deep dive into some of our numbers. I will hand over to you, Casper. Perfect. Let's go to the interesting slide here. Well, the first chart I have chosen is the one you know before. I guess a lot of people here have seen it before. It shows the historical perspective of our ARR development of the portfolio, meaning our annual recurring revenue, how it has it developed year-over-year. Just to explain a bit, the color represent a group of customers, and it's grouped by the year they become customers. For instance, the light blue in the bottom here is customers became customers in 2014 and so on. What we can see is that we in general have a positive development of all our cohorts year-over-year. On average, we have updated our CAGR growth here in the annual report. Now it's 18% that we on average growth every cohort every year. It measures on a 5-year period. This slide shows the development, looking 12 months back. At the beginning of 2022, we had an ARR on DKK 55.5 million. It's approximately 6% of that amount is coming from the new customer, the solution that we acquired back in 2020 in October. The development for the customers who became customers up until 21, we have 4% churn. We think it's a good and low churn. We're proud of it. We are not taking it for granted at all. On top of that we have a 16% uplift. If you see the difference between DKK 62.5 and DKK 55.5 million, it's a Net Retention Rate on 113. On top of that, we have added a lot of new customers, as Christian also told us, why we have in total a year-over-year growth on 28%. At the end of 2022, our portfolio is split, 11% in our customer solution and the rest to Penneo Sign solution. We're pretty happy to see that we are start scaling the solution, the new customer solution just as planned. Here is a view of how our internationalization is going. At the end of 2022, DKK 20 million, approximately DKK 20 million is out of 2021 is coming from foreign new market. By foreign new market, it's defined by a country outside of Denmark. Domestic market is Denmark and the rest is outside of Denmark. And the pie chart here on the side shows how the DKK 20 million is divided. You can see here is the large portion is coming from Norwegian, the Norwegian market. What I also like to highlight is that we're pretty proud that the Belgium market is start to setting off a lot of the ARR is coming in 2022. It's pretty cool to see that it start working, that we have a local team now represented in the Belgium market. Overall, when you saw that we have an ARR year-over-year growth on 28% for the domestic market it's 36%. If we're looking down to our New Biz, approximately the half of the New Biz is coming from foreign new market and the precise number is 49% is coming from the foreign new market. Yeah. Maybe I just need to add, in Norwegian we have four out of four Big Four companies and that's a result of the last we missed before 2022 was this big new customer deal in Q2 last year, why we got the last Big Four in Norwegian in. It's also reflected here and that's the reason for mentioning in Q2, we have this big deal this new customers and new customers all other quarters is representing more like how Penneo in novel performing. Looking at the years, in 2022 we got 404 clients in or customers and we could compare that to the last year, 530 customers. It's a bit higher when you look at the first year's ARR compared to last year and the CAC is also higher but what you can see if you look at the Q3 and 4 in 2021 and the rest of the Qs in 2022, you can see that this level approximately DKK 30,000-35,000 is the level that we are on in terms of CAC. We ended the year up with a Net Retention Rate on 113 compared to last year where we ended up in 124. We see that all the quarters have a positive Net Retention Rate, it also means that we still see a high average revenue per account even that the some quarters the new ARR from new customers is lower and some is higher. The portfolio is that big, the Net Retention Rates is always supporting that we have our growth in ARR's revenue per account. In that slide, Christian has told us about the bottom line here, the DKK 11.11 million, this adjustment to the guidance that we made just in the beginning of the year. A part of that is a one-time fee. You can see here when the top line is growing by 33% and our ARR is growing by 28%, a large part of the differentiation is the one-time fee that we just booked in Q4. Cost of sales is only growing with 30%, meaning that we have an increase in our Contribution Margin, and that's pretty cool, and we are proud about it. What we normally says that for now, don't expect more than 80%. We are satisfied as long as above that. Other external expenses increase a bit here from 2021 to 2022. It's a result of, when you see in the report, we have shown how many headcounts we have. A part of this is contracted headcounts, and that full person is a part of the other external expenses. Also, cost related to, for instance, marketing is a part of it. Staff cost, yeah, I think if you look at the chart showing our headcounts, you can see that we have scaled throughout the entire year. In 2022, you have seen a bit increase, but the full effect of that ramp up will be affected the 2023 numbers. Next slide here is our way of show how much does it cost to grow DRR 1. It's cash flow-wide, so pretty transparent and honest, given that you have all the accounting principle. We have just made one adjustment to this just to be clear about it. The cost for being listed on the Nasdaq First North in 2020, approximately DKK 2.3 million, and the DKK 2.4 million here in 2022 for the migration to the Nasdaq Copenhagen Main Market is taken out. We have the cash flow from the operation and from the development, meaning product development. What we can see is that when we invest in 2020, we had a negative relationship between the growth and the negative free cash flow on DKK 1.7 per growth DKK. In the year after, when we saw the result of all the investment that we have deployed in 2020, we saw a better relationship between those two numbers. Now when we in the spring raise capital and start out a new ramp-up period, we will see that hopefully, and what we have planned is that in this year, 2023, we'll see the result of all the new headcounts, meaning that we'll again see the growth relationship between the negative fast cash flow is getting lower again, meaning it again will be cheaper to buy DKK 1. What we normally says is that we are never planning to running out of cash. Why? We will, unless we raise further capital, then we will see a positive relationship between those numbers since you cannot spend cash and you are not earning. Over the years, we'll see that it's a positive number. for now, as planned, it's DKK 1.7 in a negative direction. Let's go to the outlook for 2023. First, our guidance on ARR. We achieve 71 in 2022, and our guidance for 2023 is between DKK 87 million and DKK 95 million, which corresponding to an ARR growth of 23%-35%. Just as a note, the outlook is based on the currency exchange rate per end of 2022. To put some words to the guidance, and especially to some of the key assumption that we have been making, we have 4 in total. The first one is that we have based this guidance on that we expect, you know, a continued conservative buying pattern. The buying pattern that we have saw in the late Q3 and Q4, both with our existing customers and new customers, then we, at least compared to earlier historical performance, which including saying that we have a lower average deal size due to smaller initial sales commitment and also some longer sales cycle from some of our larger deals. We expect, and we have planned in that will continue into 2023. Next key assumption is unchanged strategic priorities. Despite these uncertain market condition, we remain confident in our growth strategy. We will continue and to invest in maturing and scaling up our organization, although we might choose to adjust investment if market conditions deteriorate. These investment spans across sales and marketing and product development and also other key areas that play a critical role in supporting the continued geographical expansion of Penneo Sign and rollout of Penneo KYC. About the geographical expansion, then in 2023, our intention is to also enter at least one new market in Europe, in addition to our existing market in Scandinavia and Belgium. However, since it also requires some time to gain traction and adapt our solution to the local rules and regulation, then we assume, you know, there we only assume a small relative part of new revenue come from the markets, but at least, you know, strategically, we expect to enter one new market as a minimum. Assumption number three is increased demand generation capabilities. Over the last year here in 2022, we have carried out some organizational changes aimed at increasing our demand generation capabilities and sales reach. Traditionally, our primary way of creating demand and acquiring leads and converting them to customers has been using digital inbound marketing and sales, so direct sales. In 2022, we have strengthened our outbound sales with reps who are solely focused on sales prospecting. Therefore, we expect a larger share of our new customers come from this sales channel. All together, we expect a larger number of new customers in 2023 compared to 2022. This will contribute positive to ARR growth despite our lowered average deal size per new customer due to these current market conditions. Last but not least of our key assumption, we have an assumption of low churn and continued uplift. In 2023, we expect a slightly higher customer churn, but yet still below this 5% benchmark that we are often mentioning, and that we have set up as a general, you know, company goal based on our historical performance. We also expect on a continued uplift from our existing customer base on increased engagement with Penneo Sign and also revenue from cross-selling our Penneo KYC. That strategy where we had in 2022 also continue on that. Moreover, we also expect a net positive effect on ARR uplift from an annual adjustment of our pricing that are inflicting the general increase in inflation rate. This has been introduced in 2022 and stepped into effect from January 1st, 2023. These were the key assumptions that we have put into our guidance when we made them. As it can also be seen, there's a little bit more or larger uncertainty, so the range is higher than it used to be. If we go to the EBITDA guidance for 2023, we achieved DKK -11.1 in 2022, and our guidance for 2023 is between DKK -10 and DKK -15. That, you can say, is a result of the continued, you know, the investment in growth, and with, you know, the maturing and scaling our organization. We will continually measure and say how we are doing. As we have said, and you also explained, Casper, in your last slide with this free cash flow up against the ARR, free negative cash flow. Our EBITDA guidance is based on that we do continue to invest across sales and marketing, product development, and other key areas, but on a level where we will never run out of cash. That's the reason why the, you know, the range is only 5 even though that the ARR is bigger. That's because there's ongoing. Our methodology of how we run the business is ongoing, checking that we have enough capital to continue to grow. We do believe that, you know, our plan with investing in ARR is a good plan, based on the how much, you know, the CAC up against the ARR and then the long-term value. These were the reflections we have done regarding our guidance, both on ARR and EBITDA. Last but not least, together with our annual report today, we have also published two other report. We have published for the first time ever our ESG report, where you can read more about Penneo's environmental, social, and governance indicators. We're very proud about that. We have also released today our remuneration report, where we provide a transparent overview of the remuneration of our executive board and board of directors. They came out together with our annual report. That ends our presentation of our annual report today, and then we are open for all question and answers. Thank you so much for the presentation, Casper and Christian. We've received plenty of questions. Let's start with that. First, congratulations with your acceptance on the EU Trust List. I would like to know, have you built up a kind of pipeline of potential customers, for instance, in Belgium or Germany that require that you have or you've got this green light for acceptance on the EU Trust List or, and now can provide the highest standard for sign solutions? Yes. As we have planned to, and we plan to be on the list, and we also saw it at the end as a formality. In our dialogue, we have started up, discussing it, so there is a demand for it. Yeah. All right. I think we got a lot of questions about the guidance. Let's start with that. First of all, you also mentioned the price increases. If we start with that one, there's a question here, how large are the price increases in your 2023 guidance, and is it already implemented across all customers ahead of 2023? I think you mentioned it, Christian, but maybe you can elaborate a little on this. What we have done is that we have, you know, we have price increase according to the inflation rate. As the inflation rate last year were around 10%, then that when a customer renew, then they will get an, you know, say, a price increase based on the inflation during 2023. It's not that as of January 1st then everybody pays it. It is when they have their renewal. That's our standard terms. It has an effect for the first time in a long, you know, in basically all the years because now the inflation is a substantial number. Compared to earlier. It will have an effect throughout 2023. Maybe a follow-up question. Do you expect this to affect your churn rate? Yes, it might affect our churn rate. In the price increase then we have put in that it might change. That's the reason why we say, okay, we still have the benchmark of five. We have never been on five. We've always been below, but we do expect that it is on the level that we have now, and that can also be based on that price increase. Yeah. Okay. In regarding the postponements of large KYC deals, how many of them are included in the 2023 guidance? I'm not sure if you can give us some numbers, but there is a question outside asking how many of them, you know, from the postponements in maybe in 2022 are including in the 2023 guidance. Yeah. Those that were, that was part of it have, you know, they are still in our pipeline, all of them. We continue working on those plus more in 2023. Can you give us numbers? How big are these KYC customers when you're talking about large deals? Yeah. They are approximately size of what we have seen before when we have announced these KYC deals. Of course, they differ from customers to customers. Mm-hmm They have a substantial size, and that should be seen up against when you see the average deal size of DKK 20,000, DKK 22,000, DKK 23,000. Yeah. There's 10 times more or 20 times more, even more than that. It has an effect when you close these deals. Yeah. Yeah. Okay. Then more general, there's someone asking here, can you elaborate on your low ARR expectations in 2023? With more than 110 employees on the team, it seems disappointing that Penneo is not able to scale faster. That's the question. As said, we believe with our, I would say, 23%-34%, yeah, that is, you know, saying giving the circumstances that we have right now, that is still a good growth rate. We have done a lot of initiative with the 111 and more to come here in 2023. What we are investing in is the future growth, but we cannot do anything about, you know, the current macro environment. Of course, we hope that the market will, I would say, they will get out of this cautious buying behavior. Yeah ... and then we see the more trade. What we know is that the market that we are in, you know, say there is a demand for our both Sign and KYC products, and they would say if that's for us, the most important thing. Yeah. Okay. growth rates of, let's say, 40%, 50%, it's not right now in the market, but could that be possible again for maybe in 2024, 2025? I could never dream of it. Let's see. We will, of course, on ongoing evaluate it on how to do it when we do our best effort, you can say, to really to ramp up the organization and make our product as strong as possible. For example, when we are ready and the market is ready, of course, then we'll do our best to keep the high growth rate. Yeah. Yeah. that we have, that we're experiencing and have experienced. Okay. There's also a question here about the market. Which market do you expect to enter in 2023? Yes, we have not finally decided yet, but we really have intensified this evaluation, and by intensifying, there's a lot of things that need to, we need to be ready with. We are having, say, concrete customer dialogues in the Netherlands and in Germany and Austria and others where we say, okay, are they ready or not, and what is the competitive landscape? Right now, these weeks is, and these months is very much about Germany as it is. It seems to be that they soon are ready. What we have, from a strategic point of view, have decided is that we, you know, we went one country by one country. Basically copying the way we did it in Belgium with the experience from there. When we are there, then we rather have a local team that can really, you know what I'm saying, push it when we enter it rather than have everybody spread all over Europe. Yeah. A question to the organization. There have been some changes also in the management team. Can you elaborate on this? Yes. We have hired a CTPO, and we are very happy about that and good into it. We also did hire a CMO, it turned out quickly that there was not a good match, so therefore, he stepped down. Okay. We are seeking a new CMO. Yeah. In general, from an organization point of view, what we really can see in 2022, these were the ones that were announced. We got a lot of, you know, we really strengthened our organization. There are a lot of good people in many different positions that, you know, they help and support our whole growth strategy. We are very happy about that. Yeah. Okay, let's move on to a question about the gross margin. You have a small increase in your gross margin that despite many SaaS companies report about increasing cloud costs, what are you not seeing? Sorry. Yeah, maybe that's the question is what is the difference here? Are you compensated in some way? Does that make sense? Yeah. Our Contribution Margin goes- Right basically it's in. Yeah the environment Yeah. The cost of cloud are increasing. Yeah. That is, it is also increasing. Should I try to put some words on? Yeah. Yeah. Mainly, you have three major costs below the cost of sales, and it's like the server cost, as you mentioned. Yes, it's increasing. We have the 3rd vendor cost, for instance, NemID or MitID in Denmark and so on. itsme in Belgium. There's the 3rd one is reseller provision. Back in the days when we was founded, we have resellers, and since we are more and more a strong brand, we don't need to sell throughout the resellers and pay for it. At least we're doing a lot to integrate the system. That's also a positive thing. You're completely right. Please ask Amazon to set the price down again. Okay. Let's take one of the last questions from the audience. Seen in isolation is EBITDA in Denmark positive or when should we expect total EBITDA to be positive? He asks also about exclusive one-offs. Yeah. If you take the total, now we have guided -10% to -15%. So in that sense we do not expect in 2023 to become positive. As you also mentioned in your overall, this free cash flow up against new ARR with the debt curve. Now we are in the beginning of our investment curve, so now it has increased to a rate of 1.7. We expect that to go down next year, it's below 1.7. It will, you know, say as we are at the end of our investment curve here, then at a certain point we become cash positive again. We have not released numbers on EBITDA level on the different countries in our report. If I just should add on a bit here. Since we are investing some of our investment rounds in the, in the development, it's not hitting the EBITDA. Why? We will have a better EBITDA before we can run out of cash, if it makes sense. Part of it is since we have this situation where we never deploy a cash we do not have, then we'll see a positive EBITDA before we see the break-even on the cash flow. Yeah. All right. Well, I think we went through all the questions from the audience. Thank you very much for the presentation, Christian and Casper. Also thanks to the audience for asking all the questions. As always, we will upload the recording of today's presentation later across our channels. With that, I will say thank you very much again, and have a nice day. Likewise. Thank you very much to everyone.