Welcome everyone on board the Efecte Growth Train to our first ever Capital Markets Day. I'm Tatu Paavilainen, and I'm responsible for investor relations here at Efecte. In the opening video, you heard some of our customers tell how they use Efecte to digitalize and automate their work. We're here today to tell you more about how we make that happen. We published our strategy update this morning, and this afternoon we're excited to shed some more light on the updated strategy and long-term financial targets. Before going forward, I'd like to highlight that we have a disclaimer for forward-looking statements in the presentation material, so please take a look. As for today's agenda, we'll start off with Niilo Fredrikson, our CEO, presenting an overview of the updated strategy to become the leading European alternative in our space. Taru Mäkinen, our CFO, will also join over video link from the Efecte HQ to shed some additional light on how we performed over the past strategy period. After Niilo and Taru, Santeri Jussila, our Chief Product Officer, will present our product vision and how we differentiate on the market. Steffan Schumacher, our COO, will talk more about our go-to market and our growth. Finally, Niilo will come back to the stage to wrap up with a quick recap. As for Q&A, we've reserved separate shorter Q&A sessions after each of the presentations. In addition, there will be a separate longer Q&A session with all of Niilo, Steffan, and Santeri towards the end of the event. You can present your question using the webcast portal's Q&A function already during the presentations. I will then read out the questions to the presenters. We'll have the equity analyst following Efecte both online and also here at the studios, and we'll also take some questions from them as well. With that, I believe we're ready to board again the Efecte growth train and jump onto the agenda with Niilo taking the stage. Thank you. Thank you, Tatu, and hello everyone. Welcome also on my behalf. Now, before diving into the content of today, I do want to acknowledge the horrible war in Ukraine. Efecte is not directly impacted, but we have been, and I am personally shocked by the Russian invasion, and we strongly condemn it. All the human suffering is heartbreaking, and I can only hope that it ends as soon as possible. In the middle of these difficult times, a bright spot and then something that has been giving me some hope is definitely how people in Europe, in the whole world have been coming together and reacting to all this in a really great ways. We at Efecte, we have donated through UNICEF for the benefit of Ukrainian children and families. We are continuing every day our work to build a stronger Europe. Now, with that, let's switch gears and talk more about Efecte and our strategy update. As Tatu mentioned, we did publish earlier today a strategy update that I consider to be a very natural evolution of our strategy. We're thinking about what would be the key messages, key areas to highlight during this Capital Markets Day. What we plan to do is provide you an overview of the update and then specifically highlight our ambition, how we've raised it, what's new compared to before and the whole thinking process behind it. Why now? What's the opportunity out there in the market, and what's our plan to fully capture all that potential? Another key point is our product. In our type of a SaaS business, and we are in a software product business, and in a way it all starts with the product. We'll have later Santeri, our Chief Product Officer, on stage to talk more about that. Then of course, you know, high ambitions, a great product, it's not enough if we won't be able to get that in front of the customers out there into the market. That's what the third presentation is about, where Steffan will take us through how we grow at Efecte. How we grow through international expansion, how we grow through acquiring new customers, and how we grow through expanding our business with our install base, our existing customers. What I wanted to start with is to give you a brief overview of how we have arrived here. Efecte listed on Nasdaq First North towards the end of 2017. That's about four and a half years ago. We did get some funding through the listing, through the IPO, that we intended to use for international expansion. At the time, Efecte was a very Finnish company with minor operations outside Finland. We started investing into growth outside Finland, especially in Germany, but also in Sweden and through Sweden into our Scandinavian business. We hired a full team in Germany, and it did take us a while, but then towards the end of 2018 and especially during 2019, we were able to start winning major deals in the very competitive German market. At the same time, we also started evolving our processes and our team in Finland to be able to support a more international operation. A key milestone to me was what we did in 2020 when we started to focus more on partnerships. We said that, "Okay, we've been able to make a successful market entry into Germany, into which we will need to continue investing to grow that further. We have definitely not reached the ceiling there. But let's find a way to expand our reach outside our direct markets a little bit faster than through just establishing offices in every single country." That's what we launched in 2020. We've worked on it in 2021, and as you heard in our earnings webcast, we made quite some progress last year, and we are looking forward to more progress this year. All the while doing these things, of course, we've been also doing something which, to me, is really now the foundation for our strategy going forward, and that's proving our unit economics. I mean, even if there are opportunities to grow, it doesn't make sense to grow unless the raw profitability capability is there, the profit-making opportunity for the long term. I do think we've done a pretty good job in the last three years improving those unit economics around customer lifetime value and customer acquisition cost, around SaaS growth, recurring gross margin, et cetera. Hey, with that, let's hear more about our financial performance in the last couple of years from our CFO, Taru Mäkinen. Thank you, Niilo. We've been growing and performing well and according to the plan. As you can see from these graphs, our revenue and profitability have developed favorably in the past years. We are on the right path growing while EBITDA has been positive for the last two years. In 2021, our EBITDA margin was at 5% level. Looking at what we promised and been aiming at, we've been aiming at annual SaaS growth of over 20%. In recent years, we have reached annual SaaS revenue growth of 23%-24%, so we're very pleased with this development as SaaS growth is of greatest importance for us. We've also promised to increase our international presence. Clear improvement has also been reached in this area, especially in the DACH region. As well as revenue improvement, we have promised to improve our EBITDA margin. This has improved consistently in recent years. The development is a good proof point for the scalability and profit generation potential of our business model. Next, we can have a look at quarterly SaaS revenue growth. This shows a consistent SaaS revenue growth of over 20% for 17 quarters in a row. This shows great potential to substantially grow absolute revenue numbers over the years. It is to be noted that when keeping the current growth rate of 20%-25%, this will lead to exponential revenue growth when thinking of absolute numbers. Also, to prove consistency in our strategy and SaaS revenue development, this graph shows that the weights of SaaS revenue of total revenue has grown in recent years. Share of revenue from our legacy solutions is decreasing steadily as customers are increasingly moving to cloud. What I'd also like to point out is that our business model provides us with a very strong cash position. License fees are in most cases invoiced upfront, giving us strong cash balances. This helps us to finance our operations and helps us to invest in further growth. We've been developing our SaaS metrics and KPIs in the last few years in order to give a clear picture of the performance of our company. As you can see from here, our net retention rate is at a 115% level and LTV/CAC at over eight. These are from year 2021, and indicate that our sales channels are effective and that we have kept our customers happy. Recurring gross rate is also a very important metric for a SaaS company. In 2021, this was at over 80% level. It's very strong and indicates that our operations are efficient, and we have a great ability to scale our business further. All in all, I'm happy with how we've been delivering against our plan in the last three years, so we're now financially well-positioned to continue our growth. Thank you. Great. Thank you, Taru. As you heard, we are obviously financially well-positioned now for the next phase in our strategy. I'll move on now to describing the thinking process behind the market opportunity and what kind of a role we see Efecte play there as we aim to become the undisputed number one in service management in Europe. What we do is we have a service management platform, and there are three solution areas for which customers use it predominantly. There is IT service management, which is our core, our heritage. Even today still, most of the new customers come in starting with IT service management. There's enterprise service management, which refers to using the same platforms for digitalizing and automating processes outside IT. It can be things like HR service management, it can be facilities management or management of, say, customer complaints. Finally, there's identity governance and administration, IGA, which refers to management of access rights and making sure that there's an audit trail for all those changes. It's a subset of the broader identity management market. All of this, ITSM, ESM, and IGA, we do deliver on one Efecte cloud platform. Now, when we look at these three markets, first of all, it must be said that the ESM market is not really covered that well by industry analysts and estimated in terms of market size. Typically, it's included in the ITSM market size figures, and that's the approach we're taking here as well. When you're looking at this graph, this essentially represents the combined ITSM and ESM market size, which as you can see is for Europe, it's over EUR 1 billion, and definitely in terms of addressable market, there is more room for us to grow. There are many players in this market, both global and local. However, it is clear that there are a few, as we call them, global Goliaths that definitely dominate the airspace in ITSM and ESM, and then a larger number of local players. I'll talk a little bit more about our position in that picture in a minute. From the industry trends, I do want to call out the cloud transition. That's something that's been going on already for years. There is still more ways to go in terms of that cloud transformation. Let me actually do this and skip over to this slide. What you see is that while in the Nordics, cloud adoption is roughly at the 70% mark. Still, when you exclude that region from Europe, the rest of Europe cloud adoption is at only 40%, or below on average. We expect in the coming years, those adoption rates to grow significantly and cloud-based ITSM and ESM providers like ourselves will definitely be able to benefit from that transition also in the coming years. For identity governance and administration, it is actually, in broad terms, a roughly similar size market in Europe. A key trend there has been this move from complex to simple. Identity management traditionally is a space where projects are huge, they're massive integrations. It can be hundreds or thousands of man days getting something set up and going. Efecte has also participated in that market historically. What we see now is strong customer preference for ways to get started easily. Customers are increasingly aware about the whole cybersecurity landscape and the need to manage access rights throughout the life cycle of identities in a proper way that can be audited and that is verifiable and that reduces possibilities for human error. They want to get started fast with something easy and simple. That's really what IGA is about. We've built an identity governance and administration solution on top of the Efecte cloud platform, and we compete in a way with vendors who've done that same on other ITSM platforms. For example, Crossfuze, who've built a solution on top of the ServiceNow platform. There are also IGA specialists like Omada who are building a pure play IGA solution, and of course there are the full identity access management players like Okta, for example. Our thinking process when you start to think about our strategy for the next years really started with the market opportunity, and we do think the market opportunity is there. All those markets I described are growing according to analyst estimates at about 15% CAGR or even faster over the coming years. The market is growing. At the same time, as you heard from Tatu based on our SaaS metrics, we do think we have a model for growth and a competitive product that actually work. Given these two things, the market opportunity and the model that works, we do think it makes sense to invest in growth because the market is still being divided and there's an opportunity to capture as big as possible share of that market as we speak. That's why we shifted slightly our focus, as you could see in the update, towards growth. That said, it's still a balanced approach, so we're still balancing between growth and profitability, so it's not going all the way growth only. We think that with this shift, we will be able to capture a bigger share of the market than what we would be able to do otherwise. Accordingly, we did update our mission, we updated our vision, and we updated our strategy to fully capitalize on this opportunity. Ladies and gentlemen, the Efecte mission is to help people to digitalize and automate their work. What it means in practice is that we develop a service management platform that is agile, a joy to use, and fits your budget. These are the three key differentiators of our product. Agility, experience, and a very competitive TCO. Our culture is a big part of it as well. It is an enabler for all the experience that we provide for our customers, our partners, and even our employees. The Efecte spirit is to make things happen together. Now, with this mission, our positioning in the market, we talked about a minute ago, is one where we do see on one end of the scale, we see the established Goliaths, the global Goliaths, who have a very large market share, especially in the larger-cap end of the customer space. Then on the other end of the spectrum, there are these low-cost, no-frills type of vendors with out-of-the-box solutions, typically easy to deploy, but quite fixed in terms of both the cloud deployment models and sometimes the configurability as well. Between these two extremes, we position ourselves in the middle as the European alternative to the global players. The European mid-market and also the European public sector overall are definitely customer segments where we think that our value prop resonates the best. We do have customers who are larger than what you would call the mid-market, and we have customers who are smaller than what you would call the mid-market, but the sweet spot is definitely in that mid-market space. That's where our win rates are the highest and hence also our go-to-market efforts are focusing on that space. Two things I do want to call out there is that for Efecte, service management is our undisputed core. You know, we are not doing really anything else in those three solution areas we were talking about, and that is our core and our focus. At the same time, the local cloud models that we offer and the local team in Europe are things which we don't think that customers should buy from Efecte because we are local. Customers should buy from us because we offer unparalleled value, unparalleled agility, experience, and TCO. Those are ingredients that help. We have seen an increase in customer preference for security, privacy, and data location issues. That's something where we, with our ability to offer both private and public sector customers local cloud solutions from Europe and even their own country across Europe, is something that helps us compete in this space. With this mission and positioning, what we aim for is to be the clear number one in our space in Europe. We've been talking for a while about or already before that we are a European alternative to the global Goliaths, but we sharpen that now a little bit to put a little bit more meat around the bones and say that, hey, we really want to be the leading undisputed European alternative. Also, we put some metrics behind it and said that, "Hey, we do want to lead in customer and employee satisfaction. We do want to be the number one in technology and also market share." While working towards this vision, it's very important for us that we contribute also to a world of sustainable prosperity, happiness, and growth. We help customers digitalize and automate their work, and through that, we believe we can really help people have a positive impact. This sharpened vision is reflected also in the new long-term financial targets that we announced. Previously, we were focusing mainly on SaaS growth and profitability. Now, we broaden that a little bit and set a clear target in terms of total net sales by 2025. We are aiming to generate EUR 35 million revenue by 2025 or more, and then this is purely through organic growth, while maintaining a SaaS growth rate of 20% or above, and also reaching a double-digit EBITDA margin. This is in a way the, let's say, midterm focus now in the next couple of years. We did not change our guidance for 2022. That remains unchanged. We definitely see also a longer term, even bigger goal. That's why we said that through organic growth and acquisitions play an important role here. We will eventually become the largest European player in this space, and that would mean having total net sales exceeding EUR 100 million, and we do think that at that scale we'll be able to deliver a very high EBITDA margin. With this backdrop, how are we gonna get there? What is our strategy? There are four strategic cornerstones, as we call them, charting our way towards our vision. The first one is around growth. We plan to invest in existing and new markets so that we can grow organically as fast as possible. We've been looking at some of the figures already, like the net retention rate, which shows that we've had very strong growth among our existing customers, and we do believe that there is some room and opportunity to do more in terms of acquiring new customers. Part of it is also opening new markets. We are evaluating opening new direct markets, and also we will continue opening new partner-led markets across EMEA. I said Steffan will talk more about this a little bit later on. With the product, strengthening the differentiation is key. While today we are competitive, it is of course never a situation where you can just, you know, say, "Okay, we're competitive. Let's stay there and just keep running." It's something where you gotta keep developing the product and gotta develop the differentiation, and in the best case, you're able to further differentiate, which can help accelerate the go to market as well. We are doubling down on the single platform strategy where ITSM, ESM, and IGA are delivering from the same platform. What we've seen now recently is that the identity governance and administration piece, which is the latest addition to the picture, is resonating well with customers. The product market fit seems to be very compelling, and of course, it's still relatively early days. Personally, I do think that's an interesting space that we in the Efecte management follow closely and do all we can to make sure that we support the growth of that part of the pie. Santeri will get back to all this in his presentation. We're very fortunate at Efecte to have an amazing team. An amazing team, amazing people who have been staying here for a long time and new great people joining all the time. It's definitely a fantastic team, and we do want to build on that. We do want to build on the unique people and culture that we already have and keep making sure it remains a strength, and we want to also build on that strength. That helps us attract the type of world-class talent that we need to realize our high ambitions and also to create the five-star experiences for everybody in the Efecte ecosystem. With M&A, this wasn't previously a clear part of our strategy. Now it is. What we want to do is essentially two things. One is that we will further strengthen our technology platform by augmenting the current stack with new pieces that will help make it even more compelling for customers. We also see a role for M&A in expanding our market presence. Now, as said, Steffan will talk about the growth piece a little bit more. Santeri will talk about the product piece. That leaves us people and M&A, and I thought that I'll spend a few more minutes on people and M&A before we start to then wrap up and get to the Q&A. Building on our unique People and Culture, I already told you how much I appreciate the team, but it's really something which in today's environment, given the ongoing war for talent, given the tough recruiting environment, given pretty big attrition rates that we see in other companies. Luckily, not so at Efecte. We have been able to make sure that it's a good place for our existing team, so not many people have been leaving. At the same time, we've been able to find great new talent. I think for a large part it's based on us being a values-based organization. Our core values of trust, challenge, respect, and make it happen is not just words on the slide, but something that we really try to live every day. Now let's roll a video on Efecte people and culture. Efecte culture is all about our people, our vision, our values, possibility to be yourself, collaboration, and fun. Our culture would not be the same what it is today without our people. They bring the silver lining to our culture, and that's what makes it so unique. It's about getting excited of our vision and being part of the Efecte story, the leading European alternative, and getting excited about digitalizing and automating people's work. It's about our four core values, trust, challenge, respect, and make it happen. We created them as a joint team, and they play an important role in our everyday life. It's about growth, both professional and personal growth, and empowering each other to do things that we thought are not possible. It's about being yourself and bringing your full self into everything we do. Culture is about fun. We do work because it's fun, and we celebrate with our people and with our customers, and we often do it with a twist. Culture is collaboration. We work as one Efecte. It's called Efecte Way. It's our way of life. This is us. Well, this is us. By the way, it was Niina Hovi, our VP for People and Culture, who was speaking there. I think I believe the video was missing the name and the title. With that, I think that's a good segue to saying a few words about our leadership team. It's of course only a small part of Efecte. I think it's really about the broader team at Efecte. This team is also representative of the type of talent and experience that we've been able to collect into this relatively small company, with, you know, Niina having background from Accenture and elsewhere, Steffan, longtime Microsoft and Citrix leader, Taru, extensive finance experience. Topi is a longtime Efecte person. I believe 15 years or so with Efecte. The latest addition, Santeri, our Chief Product Officer who recently joined last year, well, not recently, about a year ago, I believe, Santeri, from Nokia. I did promise to say a few more words about the M&A piece as well. This actually is the last thing before I go into the financial targets and guidance and kind of give you a little bit of picture of where we are heading. As said, M&A hasn't previously been a part of our strategy. It has been something that that we've called out in our earnings releases now, essentially for maybe nine months or so, and we've started exploring it. We've said that it's a long-term effort. I think it still is like that. Of course, always whether we are able to complete or execute a transaction or not, it's dependent on many things. Also the overall situation in the world and the markets always impacts these things. It can also create opportunities, by the way. In that sense, we're definitely putting quite a bit of hours onto this one. Just opening up a little bit what we mean with augmenting the technology platform. It is essentially acquiring potentially a company or companies whose technology would bring something new onto the Efecte platform. Some areas of interest to us are AI and automation, omni-channel service consumption, for sure. If you look at our three solution areas of ITSM, ESM, and IGA, there are also some adjacent spaces like customer service management, which could be future opportunities. There's a what we call 360 coverage of digital assets. Efecte Asset Management, Efecte CMDB has always been a big part and appreciated part of our offering and it's integrated in many directions and there might be some technologies that could help make it even stronger. On the other hand, when we say we might also expand our market presence through acquisitions, it could mean two things which could come in one or they could come separately. It's sales and delivery capacity. It's definitely tough to recruit always, and it's even tougher to recruit outside your home country if you're a relatively small player like us, even though we've been very lucky, you know, some of the people we have been able to get join the team, for example, in Germany and Sweden. But it could be a way for us to strengthen our presence in one of those countries, for example. Customer footprint, of course, if we were able to acquire a business who would have customers in the ITSM space, that could be an opportunity to migrate those customers over time over to Efecte. That said, as we've always said when we talk about M&A, we do think it's a long-term process. We are very cognizant of all the challenges there. It's never easy to integrate businesses, so we're not pulling the trigger easily in that sense. It's a key part of our strategy now for the coming years. I believe Santeri will also touch on this in his product presentation and I think a realistic expectations in terms of timing, of course, we don't know when something happens, but for example, if something would happen next year, it would be kind of logical given what we are doing and how we are executing around this. This last thing here, before taking some of hopefully the many questions you have been sending through the system, our financial targets and guidance and dividend policy. You obviously saw in the strategy update how we updated the long-term financial targets. We did not change our guidance for 2022. The world around us has again changed in the last couple of weeks, but, you know, we are confident about our guidance. We keep executing. I think there is a lot of work, of course, as always, but we are positive about it. The dividend policy is also unchanged. I mean, as we are investing in growth, we are not planning to pay dividends in the foreseeable future. Looking at the bottom part of the slide, this year is definitely a year of investment. Next year will also be a year of investment. and 2025, we are planning to increase our profit margin towards the target of delivering double-digit EBITDA in 2025. As you can see from the second part of our long-term financial targets, in the even longer term, we do believe in significant profit-generating ability of this model. The cash flow may be the last thing to comment on. You heard Taru mention that the year-end cash position was the strongest we've ever had. So in that sense, we are well-positioned, and no immediate need for extra funding. Of course, we keep evaluating the market and all the opportunities that the market presents to us, but this is the plan, and I am personally very happy and confident about this plan. With that, I think it would be good time to welcome Tatu back on stage to facilitate the Q&A. All right. Thanks, Niilo. Thanks, everyone. We have a healthy pipeline of questions already here, so maybe we can just dive in. Sure. All right. We first have two related questions relating to our strategy and how we've prepared that. The two questions being, which persons have been involved in setting of the updated strategy, and how was the decision process? Oh, that's an interesting question. A really good question. Thanks for asking that. Of course, it's been the Efecte leadership team, and it's been even the Efecte extended leadership team for sure. One of the benefits of working at Efecte is having a very senior and capable board of directors. We've also worked very closely with Pertti and the whole board team throughout this process, and we took ample time. I mean, we spent, you know, probably six months or so, starting last year, on this whole process just to make sure that we get things right. Obviously we are in a luxury position where there is no kind of, you know, there is not a crisis to which we need to react with to our strategy. It's more like we're just seeing so much opportunity, and it's about what's the right type of balance of growth and profitability, and how do we make all that happen. Next up from the equity analysts online. Have you seen any increased competition in your mid-market segment, or is the competition mainly coming from the alternative playbooks or meaning the low-cost, no-frills or the Goliaths? Well, I would say it's three groups of companies that we come across in front of the customer. It is the large Goliaths like a ServiceNow. Then it's the sort of, you know, no-frills out-of-the-box Goliaths like, you know, say, Freshworks, and it is the local competition where, you know, you might name for example, Serviceware, Matrix42 from Germany. These are the three different groups against which we compete. What you can see is, of course, you know, the large players are trying to come down. The kind of SMB players are trying to come up, and then the local players are trying to expand their footprint. There's competition for sure. It's been like that for a while, so we haven't noticed any dramatic shift in the competitive pressure, but we are definitely very aware of it, and that's also why we've taken great care in building the product strategy and making sure that we remain competitive also going forward. Yeah. Yeah. We'll hear more about the product strategy from Santeri soon. Next one. Could you please give some more color on the double-digit margin 2025? Should we expect a low double-digit margin or closer to 20% by 2025? Well, lots of numbers there. Obviously, as we set the target to be double-digit EBITDA margin, what I can say is double-digit EBITDA margin. You know, I won't speculate further how much double-digit it might be. I just want to point to the even longer term ambition that we set where we said that we would be able to get to, you know, 25+ type of EBITDA margins in the longer term. The kind of raw profit generating ability of this model, I definitely believe in that. Good. Yeah. Next up, you say that, you know, you have noticed European customers steer away from the global cloud platforms. Can you describe the drivers behind this? Sure. There have been recently a couple of public sector decisions across Europe where customers have said that due to privacy, security, and data location reasons they are gonna move away from some of the global cloud vendors' platforms. I don't believe that would be a development that would, you know, eventually end up sort of being one where everybody in Europe just suddenly jump off the global cloud platform. There is a lot of goodness in those, you know. I've been myself working previously at Microsoft, you know, they and many others build great stuff, so it's not about that. Definitely in certain customer segments, like, for example, public sector, there is a need and maybe a heightened awareness now for what it means. If you are on a local platform which runs locally, kind of built and operated in Europe or in your country versus, you know, it's built and operated from very, very far away. I think that's what's really behind it. For Efecte of course, with our flexible cloud deployment model, which allows for that local cloud, I do think we are quite well positioned to benefit from any further moves in this space. Yeah. Makes sense. Good. Another topical question. Can you shed some light on your pricing in your agreements? Are you able to raise prices in these inflationary times? One of the things that we've always promised to our customers is that we want to be predictable in the pricing. Predictable does not mean that we would not raise prices, but it means that, you know, it doesn't follow a random kind of schedule or schema. We have been able to raise prices and we will also going forward make sure that the pricing makes sense for everybody. We will continue make sure that the TCO of Efecte remains very compelling. You heard right in the beginning in the customer video, there was Panu Hannula from the Musti Group talking about the return on investment they've realized with Efecte. We want to make sure, you know, that remains a core strength of Efecte. At the same time, obviously, you know, we are subjected to inflation around us as much as anybody else, which means that our pricing also needs to reflect that. That's something of course we plan to do. Yeah. Great. We actually have a healthy pipeline of questions still, but let's have a couple more and then we'll save the rest for the longer session at the end of the event. Yeah. Hey, let's stop there for a second just for the whole audience. Just to recap, after each of the sessions, we'll have a short Q&A, right? That is correct. There will be a Q&A with Santeri. There will be a Q&A with Steffan. At the very end, we'll have a longer Q&A session, where all three of us will be sitting in the comfortable chairs right there, which are probably not visible in the picture. You are saying that some of the questions that were now posted, but we are not able to take now, we might be able to answer them at the end in the longer session. Exactly. Awesome. Good. Yeah, let's have two more still now. One relating to our people and culture. In the Q4 ESG report, you stated that your unmanaged employee attrition is 9.6% during 2021. Can you explain what this means? How satisfied are you with the rate? Oh, I'm happy with that rate. I think in the current recruiting environment, employment environment, it's a very good number. So what it means is that people have left Efecte based on their own initiative. Basically less than 10% of the people have been leaving, and I think it's a very good number. We would be very fortunate if we keep it like that, and I don't see any reason why, you know, things would drastically change. The final question before we move on. Your strategy update is based on the continuing strong growth of the market. Beyond the end of your strategy period, meaning 2025 onwards, are you expecting the growth of your target markets to start slowing down? Okay. The question is about the market growth after 2025. That's correct. Well, if you look at those analysts' estimates who extend their forecasts beyond 25, as far as I can recall, most do expect a significant growth also longer term. I personally think that the whole digitalization and automation wave in a way has only just started, and that's why this industry has been growing a lot, and I think will keep growing a lot. I really can't see it suddenly stopping. I mean, there is so much that can be done, and I think in a way we are still in the first phases of, one could say, more maybe digitalizing than really automating. Now after the process is digitalized, what can be done after that is start refining it, streamlining it, automating it, leveraging AI, integrating systems, and I think that whole thing will just keep going for years and years to come. That's my personal view. All right. Good. Thanks, Niilo. Thanks, everyone. I think we can then leave the stage for Santeri. Okay. Awesome. All right. Thank you, Niilo. Hey, hi everyone. My name is Santeri Jussila, and I'm responsible for Efecte portfolio. It's my great pleasure today to present to you the Efecte product vision. This is the part of the Efecte story where we will tell you how we plan to evolve our product to meet the customer needs of the future, and to improve our competitive differentiation. During this presentation, I will discuss three key messages. First, I will start with the long-term view. I will talk about our product North Star, and explain why and how we are, over time, building towards single platform to digitalize and automate any work. Second, I will talk about the year ahead, where I will cover our key execution priorities for 2022. Modernize user experience, drive new growth with IGA, and build for scale. Third, I will talk about where we are today, where I will cover our competitiveness and key differentiators in the marketplace that allows us to win business today. Before we go to our product vision, let me also start with our portfolio today. Niilo already covered well with each of the three products we have to offer. IT service management that can help our customers to automate all the needed IT processes, enterprise service management that can help to automate different business processes, and IGA that can help to automate the life cycle management of digital identities. From our portfolio approach point of view, it's good also to add that each of these three run as a product line with their own roadmap, and with a clear benchmark that each need to be competitive against anyone in the world, so that we have genuinely three value propositions and entry points to our customers. At the same time, as Niilo also well pointed out, the platform approach is equally important, so that our customers can easily evolve from one solution to the others. All of this runs natively on same platform. They provide integrated use cases. They share common technology base and give obviously operational synergies. All of this builds up to the TCO value proposition as a portfolio we have with our customers. Let me then talk about our product vision. Now, if you are a chief information officer or chief digital officer of a mid-market company, it's not actually an easy position to be in nowadays. Today, the mid-market companies have very much the same needs than the large companies. Their employees and users expect better consumer-like experience from digital services. Number of those digital services they need to deliver is increasing by the day, and it all needs to be in cloud. Demands for security, privacy, and control of data has never been more important. The needs from the business side are not getting any easier, calling for ability to automate, but also ability to adapt to new requirements with an ever more faster clock speed. The big difference is that the mid-market companies do not have the same amount of money to spend. They can't solve problems with spending a lot of money on services. They cannot just keep buying a dedicated best of breed for every function they have in their IT. CIOs can't just buy their way out of it. They need a smart, cost-efficient way to deliver against these increasing needs. This is the challenge we believe we can help to solve. Our vision. Our vision is to build a platform that allows companies to digitalize and automate any work they may have irrespective of when and where that work is done, and also irrespective of which tools the users want to use for the work. We are building a platform towards that vision that helps CIOs to meet those new levels of expectations towards better user experience. This requires the platform to support multiple consumption channels and types in an omni-channel manner, so that users can actually choose the channel that's most feasible considering the time, place, and work in question. This also very much requires a unified underlying design and integration across all of these channels so that the user experience remains always consistent and coherent. We are building a platform that gives CIOs the agility to automate and adapt to any needs the business side has. It comes with the ability to automate different business processes end to end, from IT to different enterprise to digital identities. It also comes with the ability to change the configurations in a matter of hours and days, so you can operate with the same clock speed that the business side lives in. We are building a platform that continues to secure the TCO that mid-market companies can afford. Which comes with a single unified data model that includes this, what you could call a holy combination of digital services, digital identities and physical assets interlinked and all in a single place. It comes with inbuilt AI, analytics, low code tools, knowledge management, open APIs. As Niilo talked about, it allows customers to choose the cloud deployment model, be it public, private or hybrid. Finally, it ensures also an open and cost-efficient integration to any other system in the ecosystem. This is the North Star guiding us, an intelligent AI-driven cloud platform with an agility to automate any business processes and on top providing the unified omni-channel experience to all digital services. So that in the end, CIOs can continue to meet those increasing demands they see with the TCO they can afford also in the future. How do we get there? We already have several elements of this vision in place. Now with our long-term roadmap, we will complement the stack step by step towards this North Star. If you first look at our plan for 2022, we have three main priorities there. Modernized user experience. We've always had a strong focus on this, but over time, user expectations will evolve, and it's important for us to listen carefully. Based on that, we see that now is the time to do a bigger modernization. Second, drive new growth with IGA. We've been successful incubating our IGA product, and we are now ready to move to the next phase. Third, build for scale, which means laying the foundations to our product, to our cloud, but also to our processes and to our team that will allow us to grow and operate efficiently as a bigger company in the coming years. More about each of these three shortly. Good to note, our journey continues after this year. In 2023, we plan to focus on expanding the stack. As Niilo discussed, this can be any combination of own development, strategic partnerships, and M&A. Key domains we will be looking at are AI, where we see opportunities to strengthen the stack across all those three layers we talked about. Digital assets where we see opportunities to augment the stack towards more broad 360-degree coverage and omni-channel service consumption, where, as also Niilo said, we will keep our sensors open for possible convergence plays also between the two worlds of internal and external services. Some elements of this may become visible already this year, but ultimately, we're gonna build towards that target of single platform stack we described in the previous slide. Let me talk a bit more about how we are executing our priorities this year. Our first priority for 2022 is to modernize the user experience. Here we will help CIOs to meet those changing user expectation, and we will do that in multiple fronts. We are introducing an all new self-service product that will bring more intelligence to the front end and drastically simplify the user experience evolving that Efecte design language we've had building on a, what I could call a great heritage of the timeless Nordic design principles of minimal, clean, and very functionally pragmatic approach. We announced the product back in our Digitalize and Automate event, and we've progressed very well, and we now have our first beta release ready going into customer piloting. This year, we will also start to refresh our agent site UI, the back-end UI. Here, the target is to help the power users to work more efficiently. Less clicks, faster routines, better situational awareness, and obviously, of course, more options to personalize. Thirdly, we will also introduce new user interaction points, which allows users to interact with Efecte also in other places of work. The focus this year will be on the collaboration platforms. Again, back in our Digitalize and Automate event, we announced the integration with Microsoft Teams. We've also progressed well here. Our Efecte bot is now approved and available in Microsoft AppSource, and we will release the first use cases to our customers by end of the month. Our second priority for 2022 is to drive new growth with IGA. One pretty fundamental tool on how we look at the approach for our portfolio is the product life cycle. IGA is an early life cycle product that we see is now ready to move from an incubation phase to a growth phase. As Niilo pointed out, we recognize the very clear market need for easy-to-adopt, quick-to-deliver, and highly productized solution to help companies manage the full life cycle of digital identities. We feel we've been successful building a product that meets that need, as well as proving it in number of customer projects. We've got about 20 customers in Finland, and now is the time to expand to bigger market. I'm really happy to see we are actually making very good progress with that move. Our sales pipeline shows good growth trend as we are now finding new opportunities outside. We are getting good feedback from our customers and partners about our approach here. While we evolve our customer value proposition, we are also working to build a system that allows us to scale. As you saw Niilo laying out an ambitious long-term vision towards EUR 100 million company, it is our job to put together the elements and structures that allow us to grow and execute at that level. We will be doing that for our product where we have, for example, started closer lead customer engagement with our key customers, and we will be also increasing our investment on product quality and scalability. A key priority so that we can ensure we can serve increasing number of customers going forward. We will be improving the elements of scale in our cloud. We've been investing a lot to cloud automation, and we will continue to do so, also introducing this year more proactive cloud monitoring capabilities. We are building more industrialized product processes, a very important element that allows us to operate when number of customers, partners, and Efectians grow. This is, for example, hardened processes for things like roadmap, governance, enablement, and readiness, where, for example, we've introduced new ready for sales, ready for delivery criteria to improve our ability to roll out new solutions at scale. Last but not least, we are enhancing our team with new roles, new hires, as well as more systematic approach to competence development. Clear priorities we are executing throughout the year, which will improve our competitiveness. We are also in a good place already now with strong ingredients in place to win in the marketplace today. If we first look at our track record, we've been able to win new projects against pretty much anyone in the market. In the service management space, two of the quite often seen competitors are ServiceNow and Freshworks. We've been able to win numerous times against both of them, including both private and public sector customers in all countries where we operate. In the IGA space, we've been competing against identity specialists like Okta, but also vendors who have both service management and IGA, in their offering like Ivanti. Again, variety of win examples there as well. Great examples of us winning today. Let's discuss why do these customers actually select us? It boils down to the differentiation and value we can offer across agility, experience, and TCO. I really wanna make the point that these are not just a high-level abstract statements. We have concrete value points to different stakeholders, be it the end user, the buyer, or the partner. For example, for end user, we can offer a real-life agility with our codeless configuration. For the buyer, we can offer great transparency and for TCO and reduced risk with, as Niilo described, very predictive, clear and fair pricing model. For the partners, we can provide really best-in-class experience with very smooth and automated onboarding process. Beyond these, we have one more, what we could say, new differentiator, and this comes with IGA. As we discussed with IGA, we have something special in our hands. We have a new growth engine, but also a new differentiator for our whole portfolio. If you think our sweet spot mid-market customers, they need both IT service management and IGA. There are options in the market, but most of them offer two separate products integrated with each other. There are few who have both in-house, like Ivanti or Micro Focus, but those also are rather result of acquisitions and not really natively and organically built for single platform. Yes, from a functional point of view, those options do work, and they can offer the use cases, but they do require a lot of work to plan and manage if you think things like upgrades, compatibility, administration, and operability. The key point here is that if you are not a very large company, can you afford that type of extra effort? Or does it even make sense to spend on that type of extra effort? With Efecte, you don't need to. Efecte is basically the only option who have natively IGA and ITSM built on same platform. That makes it highly cost efficient to plan, operate, and upgrade. This is something where we are seeing an increasing recognition and interest in the market for this pretty unique advantage we have. Good. Let me then summarize the key takeaways from this presentation. One, our product North Star, single platform that allows companies to digitalize and automate any work that happens in any place at any time with TCO that makes sense. Two, we are well on our way to execute our 2022 priorities. Three, we have already solid ingredients in place to win today. We have shown we can win against anyone, and with IGA and ITSM natively on same platform, we are bringing a new unique value proposition to our customers. Okay. Very good. With that, I wanna thank you for attention and, let's move to Q&A. All right. Thanks, Santeri. You're welcome. We have actually again a good number of questions here, but Okay If you have any more, please shoot them in and we'll take them either now or then at the longer Q&A session. Starting from the top, on a quite basic question. With respect to your product offering, do you see Efecte as a platform or multiple separate products? It's a good question. Basically, the answer is that we are both. I mean, to our customers, we have three products that offer a value proposition and a very productized starting point that they can choose to take. Underneath our products, we have a common platform that serves all three of them, and through the platform approach also brings a lot of flexibility and agility. If you think of our customer, they get the best of both worlds. They get the productized approach, but we are not locking them in so that they have to operate only within what the product offers. The platform gives also flexibility for the partners and the customers to configure, expand, grow new things then on top of Efecte platform. Next one. How do you see the role of IGA and IAM solutions going forward? Do you expect to see your customers moving from your IGA solution to your IAM platform? Okay. Very good question. We continue to very much support, maintain, and develop also our IAM solution, which is a little older part of our portfolio. We have great customers in Finland, and we're very committed to support them. At the same time, if we look at our new go-to-market, expanding to Europe, going to new customers, this will be very much spearheaded with our IGA solution. That new sales motion will be driven by IGA. Yeah. Yeah. Makes sense. Good. A topical question about cybersecurity. How do you ensure the cybersecurity of your product? Have you done any red teaming? Very topical question, important question. Even before I think it's also good to point out that we've been pretty systematically building our information security approach over the years. One very visible landmark of that obviously is the ISO 27001 certificate we've achieved and renewed successfully, which really looks at holistically the information security capability of us as a company. Obviously now in the current situation, we've been really increasing effort to inform, educate, help each of the employee in Efecte so that people are very much aware and can apply extra cautiousness. Two, we've been starting to look some additional measures and actions to our cybersecurity, so kind of a red team type of approach where dedicated team is looking into that. Three, we are planning and discussing also more strategic partnerships with the cybersecurity companies going forward to build for the future. Two related questions related to you, Santeri. So Santeri, why did you take this job at Efecte, and how did you get interested in what you work with today? Oh, wow. That's a personal question. I think, you know, the number one thing for me was that I got really excited about our mission to be the true European alternative in this space. I've been in software for a long time. I've worked with Silicon Valley. I worked with different countries, and I genuinely believe we are able to write equally good, even better software code in Finland. I'm really passionate about that, and I saw an opportunity to kind of make that passion into reality with Efecte. It's been a great year. It's been fun. We've done a lot of work, but we have a lot of work ahead of us, so I'm really excited to be a part of Efecte. Another one on IGA. Seems like you are talking more and more about IGA. How do you see its market potential and key differentiators in comparison to the competing products? We see a lot of potential there. We think that the mid-market has been a little bit underserved in the past. The projects have been quite complicated, and the solutions have been gearing more on the on-prem type of solutions. We see there's a lot of potential for easy to deliver, easy to adopt SaaS-based solution in the marketplace. What comes to our differentiation, we do see a number of things there. For example, our ability to start with the very easy step. We just recently launched a dedicated package called IGA Starter, which makes it, like, super easy for customers to try IGA, take those first steps, and then with phased approach, start building in the full-blown IGA. That has created a lot of good feedback. Not to forget obviously then for the companies, the ability to also look at the service management space as part of the same platform, a huge TCO cost advantage that the customers can take with that. Mm-hmm. Yeah. Good. I propose we'll take one final question now. All right. ... and save the rest for the- All right. ... for the longer Q&A session. The final question being, how many of your IGA clients also take one or both of your other two products? Hey, great question. At the moment in our customer base, we have IGA customers who are dedicated for IGA, so they only have that, and we have IGA customers who also are service management. We see pretty balanced approach there, but I think it's a for all of our IGA customers, it's an option they consider, and I think we will see many of the IGA customers expanding. As well as for the new customers where we take IGA, it's a very typical question to learn more that, "Okay, I can take also both of those." As I said in the beginning, it's the IGA and for all of our portfolio parts, they need to be competitive on their own. That's really important that customer can take IGA solution only and get full value from Efecte. Yeah. Yeah. Makes sense. Hey, thanks, Santeri. Thank you. All right. Good. Just as a reminder before we move on to Steffan's part, if you have any questions to Steffan, who will be hopping on stage soon, you can post them already during his presentation. Hey, with that, let's move forward. Thank you. Hello, my name is Steffan, and it's great to be here today. I'm gonna talk about how do we accelerate growth in Europe, and I'm gonna cover that through a framework of three proven engines of growth. The three main things I'm gonna cover today is how do we grow internationally with the proven model we have? How do we accelerate new customer acquisition? And how do we upsell and expand our existing customer base, which is an important motion as well. Before we go into this discussion, I just want to lay the ground on what we achieved in 2021. During the year 2021, we had really solid demand of all of our solutions, ITSM, ESM, and identity governance and administration solutions. Our core markets remained Finland, Scandinavia, and DACH, and we made really solid progress in all of these countries. We have been talking a lot about our channel motion, which we have been establishing last year. It's a motion we have systematically improved and developed during the year, and we were really happy that we actually added new partners in every single quarter last year. We also were able to close the first deals in U.K., Czech Republic, and Poland. I think this is a great starting point for us as we move into accelerating our growth in Europe. We have a field sales model, we have a partner-led sales model, and we have a combination of both of these. This baseline of growth really builds up on these strong sales metrics. We have been talking a lot. We have been talking a lot about the NRR, which is very strong at 115. What's behind that really strong number is our enterprise sales motion. We have a really strong enterprise sales motion in place in which helps us to drive customer satisfaction and customer upsell. You look at some of the other metrics we have been releasing, like the LTV/CAC metric above eight. Really, I think that model proves that we have really solid unit economics, and it makes sense for us to continue investing in sales and marketing because we get such a good return on that investment. Our churn has been less than 5%, which really kind of is a testament of the great product we have, our customer satisfaction, and the way we execute our customer motions. Let's jump into the first topic of discussion, which is How do we grow internationally in the next coming years? I want to start that discussion by laying out the three go-to-market motions we are running. In a way you could say there are two major models, and then there's a combination of these two of these models. The first model really is this kind of a field-based model. It's a model in which we invest in a specific country. We get our own Efecte team of salespeople, marketeers, and professional services on site, and we start to sell locally, deliver locally, and that kind of motion really helps us to access to larger mid-enterprise public sector customers and especially in the larger markets. I mean, this is a good example of this is Finland. We have done this in Sweden, Scandinavia. We have done this in Germany. The second motion we have been investing and working heavily on is this channel motion. Basically, we work through partners. We identify partners. We do joint sales and marketing. Our partners identify opportunities in the market. We help our partners to be successful, and with that, we create this kind of a quick market entry in smaller markets and kind of get our foot in the door. These are two major models, and then there's a combination of these. It's basically when you combine the field model with the channel model. You combine both sides of that model. You basically do that. That's what you do. I think we have a good example of this, for example, in Germany. We have established a field-based model. We have channel partners there like Bechtle that was even in the video this morning. With that, we get that combination of both. We can go directly into larger customers, and we have a partner that supports us in this motion as well. We at Efecte are really partner-friendly, so we have never. The way we have set up our model is that there's never gonna be a conflict between our own direct sales and our partner sales. These are the three models we are executing, and I'm gonna next talk about the field model, the channel model, and then a combination of these models. As stated in our strategy, we have the goal to expand into new direct markets. We have a proven market entry template in DACH and in the Scandinavian markets. We have proven that us investing in own people, own great Efecte team on site, it makes sense. We can get new customers, we can get new partners, and there's a good LTV/CAC. Our plan is to continue that geographic expansion during the strategy period with an initial pilot entry during 2022. The countries we are looking at are really these larger countries in Europe. Spain with their own language area, U.K., Poland, Italy, and France. I think we, like I said, we have this really good market template in place, and we are very well positioned to kind of execute into this market entry situation. The second piece really is our partner motion. We have been systematically working across Europe to identify tens of potential partners that work in this area which we have been describing, ITSM, ESM, e-commerce space. Out of those tens of partners, we have been able to kind of sign up partnerships with multiple new partners during the year. We have partners like Solutia in the Czech Republic. We just closed another partner, for example, in Sweden, Zunarity. We have Softcat in the U.K., and we have multiple other partners across Europe. You can actually today there is an Efecte field office, Efecte partner or Efecte customer in 12 different countries. This is gonna be a motion we're gonna systematically continue to execute. We're gonna add new partners every single quarter. We have a very systematic model to enable our partners. We have a systematic model to sell and market with the partners, and we're gonna help our partners to be successful and our customers that work with our partners to be extremely satisfied. I'm really confident about this model as well. In the way, you have this field-based sales model where we invest directly into the market, we have the partner-led model, and then each of these models can lead to a combination of these models. For example, if we have a kind of a area or country where we have really good partnerships, that could help us to kind of establish our own office and on the other side, if we are in a specific country, us being there will help us to get more partners to even execute further. I think we have a really good template for growth in place, which we can multiply and just go forward according to our plan. That's one way to kind of get into Europe. The second discussion I wanna have is how do we grow by acquiring new customers? It's about accelerating new customer acquisition. There are multiple ways we are gonna do this. There are multiple levers we are gonna pull. It's almost like having this kind of a dashboard of levers, and we're gonna pull every single lever, and we're gonna push multiple buttons to get speed and acceleration in each of these topics. The first thing is that we're gonna sharpen our systematic new customer acquisition in existing markets. This means we're gonna continue investing, we're gonna in... Continue hiring new Efecte salespeople, new Efecte pre-sales, new marketeers to kind of create demand and close deals in the existing markets. We're gonna also use the large reference base we have with over 300 customers that are leading brand names in Europe to kind of get more customer demand. We're gonna expand our reach in the new direct markets, so that's a topic I already discussed. You go into a new market, you get new market potential there. We're gonna use the partner channel I already described as well. Another big important focus is that we have been mainly focusing in public sector in Finland. Now, there's gonna be increased investments, increased focus into public sector accounts in Scandinavia and in the German market, plus in all the other markets we're gonna do. We see a great opportunity there. Santeri and Niilo already described some of that opportunity with the changing legislation, the requirements the public sector customers have, and the amazing product fit we have in that public sector space. I'm personally extremely excited about the IGA opportunity. We have here a product we can bring to all of our existing markets, and it's gonna be also a spearhead as we enter new markets directly or indirectly. I think us wanting to be and us becoming the leading European alternative in our space, we're gonna kind of use our value proposition to create and drive customer awareness in all of the topics that matter to European companies. I think there are multiple things we're gonna work on. We're gonna... I'm really kind of confident on the things we're gonna do, and that's gonna yield into a lot of good new things in the coming years. The thing I'm getting asked a lot is, "Why are customers choosing Efecte?" This is something I ask myself as well. In the beginning, you know, when I met with a lot of the Efecte customers, I always asked, "Why did you choose us?" It's a question I always also ask when a customer chooses us. I ask, "Why did you choose us?" I picked here a few customer quotes. Some of these are from the Capterra site, some of these are some customer interviews, and I think these basically fall under three key headers. They fall under experience, they fall under agility, and they fall under TCO. I think some of these good examples on TCO for example is that, you know, customer deals with multi-industry tickets such as IT, marketing, et cetera, and the benefit for the customer is that they can reduce personal emails and phone calls, and they can digitalize and automate a specific process with Efecte. Then, on the TCO side, there are clear cost advantages. You know, we have a better TCO than our competitors, and we meet with the requirements. On the experience side, we hear comments that, you know, "You Efecte, you are the right size of a player for us. You know, you are European, you are local, you understand our needs, and we feel the perfect fit of you, the people you have at Efecte, the culture you have, it makes sense for us to work with you. Then surely agility. I think Santeri emphasized that a lot, but that comes very much through from the customer comments. Even from some of the comments you heard this morning in the customer video. It's flexible, it's easy to do changes, and that's why customers, they value the Efecte platform. We do have a really good competitive product. We have a template for growth, and we feel confident that we can bring this product we have into the market. Santeri had a flavor of this slide as well on his slide, and I want to emphasize that we can win against anyone. We can win against the big players in the market. We can win against the small players in the market, and we are getting more and more recognized by the industry. Actually, Research in Action just released a report on the ESM space. We got three patches on that market leader patch. And some other patches in that, ISG positioned us as the kind of leading star vendor in that we are very well measured on Capterra. There's increased industry recognition of what we are doing. There's more industry recognition on how our product works, and I think that just itself kind of proves the point that we are on the right path. We are very well positioned, and customers are noticing us. Those are some of the things we're gonna focus on in kind of driving new customer acquisition. A piece of the business we have been doing really well in the past years is how we grow with our existing customers. The underlying foundation of that is our strong enterprise motion. I thought I'll kind of explain a bit how we create value across the customer life cycle. Bear with me, I tried to make this slide as simple as possible. The idea of this slide is really that you have this three-year time horizon. You have year one, year two, and year three of a customer life cycle. Typically, when we do new customer acquisition, we position with one of... We position ourselves through one of those solutions into the customers. While we have that platform capability, we are our platform. We've kind of spearhead with a specific solution. Typically, it is ITSM or ESM solution. Let's say a new customer signs up in the first year with ITSM. We do a commercial agreement with the customer for 36 months, and the customer agrees to pay for that contract annually. On top of that first-year contract, there's gonna be a professional services consulting agreement for the implementation of that project. On that chart, the light yellow on the bottom, that kind of describes the SaaS revenue stream. Then you have these waves that basically describes the professional services revenue. The first year, there's gonna be a bit of a bigger project when we implement the system with the customer. This work could also be done with one of our partners. In that case, we would only see that bottom line revenue. In year two, the expand and upsell motion kicks in. There are a few ways we can get expand and upsell. There's organic growth, so customers are adding new users into the Efecte platform. There could be new use cases, for example, HR, finance, which goes then to that enterprise service management bucket that was already described. There could be new solutions like IGA, Whistleblower, or then the customers could kind of choose to extend support options. They want to get a high availability environment with a lot of nines into the agreement, or they want to have some other kind of premium service from us. At this stage, when the customer wants to add software services during year two, we add these users into the contract until end of the term, and there's gonna be a small professional services part for the implementation. We come into the end of the term, the three year term of the agreement, we extend the agreement after the three year term, and you know, we have closures and stuff like that. We are protected with for any inflation increases and so forth. After that renewal, there's gonna be a new cycle of us working with the customer to expand the usage of Efecte. As long as the customer gets the agility, the experience, and the TCO they want, they're gonna be with us for a long time. I think that's the life cycle of a customer, and that's the way how we kind of drive that existing customer motion. There's another kind of slide on the same topic, just putting a bit of numbers behind. All of these numbers, by the way, they are just for kind of illustration purposes on this slide. If I kind of turn that previous slide into numbers on this slide, you could have the... You could have a new customer start with an ITSM implementation with 50 service desk agents. That could be from an MRR perspective, EUR 3,000 with a 36-month term, and in that case, the customer would pay annually upfront for the service. There could be, for example, a professional services engagement of EUR 25,000. The customer expands to HR. They add another 10 users. There's a bit more MRR coming up. There's an annual payment. Customer will take IGA Starter solution. They might pay EUR 1,000 for that. MRR, monthly recurring revenue. A bit of professional services on top of that. In the end of that three-year term, there's an extension of the agreement. I mean, you count all of that MRR together, that's EUR 4,500. There might be inflation terms or anything else. There's gonna be a renewal of that agreement, and then we go through that cycle again. There's always more things the customer can do with the Efecte platform, and that is the beauty of the Efecte platform. You know, you can start with ITSM. You can start the new customer journey with IGA. You can start it with enterprise service management scenarios, but there's always more to use. I think that comes really much back what Santeri described about that dilemma the mid-market or public sector CIO has. Like, they need to get automate and digitalize their processes, and they need to have a platform that's agile. It's a good experience, and they need to get results fast. That's a bit about that customer journey, and I think hopefully that describes a bit, like, how do we do that upsell and what's behind that enterprise sales motion which we are really proud of. You know, we have customers that have started small. They have expanded big. One of the examples is, for example, the Church of Sweden that has 26,000+ global users. They use Efecte extensively across all of the different motions, from ITSM to HR to finance, and I think, we have really become a strong partner with them. We provide them, basically a simple tool, simple processes to log issues, help them to prioritize, digitalize their processes. We are the digital service for them, so they get really good customer satisfaction from their teams, and I think that's just a good example of a growth story of a customer. We started small. We started to kind of work with the customer, and now, you know, we are now lucky to be in a, in a partnership with the customer where we are really a strategic partner with Church of Sweden. I basically covered three things, how we can use our kind of proven model, our kind of template for growth, direct with field sales motion, partner-led motion to continue growing internationally. I talked about how we're gonna accelerate our new customer acquisition with those multiple levers and the dashboard I described. Then three, how we're gonna still continue upselling and expanding our existing customer base. We get a customer in. They fall in love with us. We make them happy. They're gonna buy more, and then we're gonna Digitalize and Automate and make our customers' life easy. That's everything I had to cover, and now it's gonna be the fun part where my friend is gonna come on the stage. Good to have you, Tatu, here. Yeah. Good to be here. Yeah. Yeah. Let's go with the questions. All right. Good. Yeah. We actually have, again, nice bunch of questions here, and, as per usual, quite the many regarding partner program. Let's start with you, Steffan, again. So what was your first job, and how did you get where you are today? You know, my father is an entrepreneur, so he was actually, he was running a restaurant, and me, as a 11-year-old kid, you know, I got immediately a job from him, and I got that job from the kitchen. So he actually put me into the kitchen. He gave me a big bag of onions, and then he give me a peeler and say, "Go on and peel those onions." I was so excited I got those peeled, but you know what happened next? Uh-huh. He came back with a bag of carrots, and he said, "Steffan, now you're gonna go for the carrots." I think there was a good learning in that. You know, this hard work pays off. You know, sometimes you just need to get stuff done. There's a lot of work ahead, but then there's this kind of feeling of getting stuff done. That's probably what this person didn't necessarily ask, but now they heard it anyway. I think my real IT job was actually computer programming, so I've started from a technical career of computer programming, doing system development, so that's a bit of my background. It's been actually really helpful in this job as well because you understand technology, you understand solutions and so forward. Yeah. Good. New information for me as well. Yeah. Next one. During your years in the company, what have been the biggest mistakes made by the management? What a great question. I think you know, I've been there pretty soon two years, and first of all, I need to say it's been a great experience. You know, me jumping out from a big global company, and me wanted to come into a kind of a Nordic-hardened company, bringing software to Europe has been exactly what I've been waiting for. I've been getting the pros and cons of the job, and I think if I look at kind of the biggest challenge we have as a company, as Efecte, it's maybe balancing that growth. Like, we see so much opportunity in the market. There's so much things we could go and try and do, and then you wanna do that in a way that creates a lot of value for our customers. It creates a lot of value for our investors. In a way you want to be somehow kind of balancing that growth with profitability and making the right investments at the right time, and I think that's kind of one of those intellectual challenges we have and really happy about what we have been doing so far last year and look confident for this year as well. Yeah. Good. I have the partner questions, so let's dive into them. What's the difference in profitability between a customer sold through direct sales versus partner channel? I mean, so far looking at all of the partner deals we have made, and we have been in the partner business for a while already in Finland, and now we have new partners in new markets. We don't see any substantial difference in those. It's also one of the reasons is that go-to-market because when you work with the direct sales force, you have direct sales people on site, and you need to pay commissions and all of that to your sales people as well. If any of partners in the market, you know, you need to pay partner program fees to them. You know, they, it's plus and minus, but no significant differences so far. Yeah, yeah. Makes sense. Next one, what are the criteria that you will use when choosing a new country in which you open a new office or recruit a partner? Yeah. Two questions, and I think they... I'll take these questions separately. The first question is how do we choose a country when we go with a partner? I think it's more about. I mean, first of all, I think a good positioning could be that slide Niilo showed from Eurostat. You look at that cloud maturity matrix, and you see that there are countries that are just starting that cloud execution and journey. When we go into those markets and we talk with customers, surprisingly enough, there are a lot of partners that still don't have any cloud solution in their portfolio. We're gonna be the first ones to talk to them that, "Hey, we have this amazing opportunity in cloud." They say, "Yeah, that sounds amazing. We're gonna work with you," and we're gonna become that cloud vendor of choice in that market. I think that's how those discussions go multiple times. I mean, a lot of these partners, they have some old legacy systems they are kind of representing, but they see a great opportunity with Efecte, as that cloud motion accelerates in the rest of Europe. When you look at these direct markets, I think we have a template of growth in place. We have been successful in Germany, in Sweden, and I think as we look into those markets, like I said, we're gonna do a pilot. We're gonna, you know, take our template of growth. We're gonna put that into a market. We're gonna see, like, where are the gaps, is that working? When there's a good fit and go-to-market fit and it makes sense for us to go, we're gonna go. We're gonna do that with that template we have in place. You basically look at the customer, what customers you have in the market, what is the competitive situation, like what is your access to talent, for example, and then some of those things. Yeah, yeah. Good. Next up, can you provide the split of the contribution between direct presence and partner? I mean, that's a metric we have not disclosed, and I'm not gonna do it today. I mean, what we have disclosed is how many new customers we have gotten from partners, through partners and direct. I mean, last year we added almost 40 new customers, and significant part of those customers were through our partner channel. Yeah. I would say we'll have two more questions. Okay save the rest for the Save the best for last. Next up, how much time does a partner need from the signature to the moment when he brings in the first clients? A good question, and there's probably not a. I mean, you could talk in averages, but I would rather talk in different cases, kind of how this could play out. There are some partners that we have been working with multiple partners multiple months, and then in the end of that multiple months of discussion, they sign their agreement with us, but they have already started to actually enable their sales team, enable their technical team in driving that motion. Actually the first customer comes relatively quickly after that. You have some other partners that, you know, they sign the agreement right away, and then they start that enablement process. Mm. It's a bit of a mix, but if you look in averages, it takes anywhere from three months to nine months between that time. It's a tough job. You know, getting a new customer with a new partner in a new market- Yeah It's a time for celebration when that happens because when you get that first one, then you have a reference, then you can start to do reference-based selling. You can use that in marketing. It's so much easier to kind of then go for the next one and the third one and the fourth one and so forth. Yeah, yeah. Makes sense. The final question for now, have you already seen better win rates against the global Goliaths? Could there be even more conversions from your larger players to Efecte in the coming years? I mean, it's a tough market, right? It's not like anyone is gonna give out their customers in an easy way. I mean, we have seen more wins and replacements against some of these global Goliaths than we have seen in the past, and we are facing them as well in a lot of the opportunities. So far our win rate has been good. But you know, every single customer case is unique. You know, we need to have the right value proposition. There needs to be a good technology solution, product fit. Culture plays a big role. Us being European plays a role. You know, we're gonna fight for every single customer, compete for every single customer, for sure, and try to tell our customers and demonstrate that we are gonna be the best choice. It makes sense to be with Efecte. Well said. Well said. All right. Hey, thanks, Steffan. Thanks, Tatu. Again, good Q&A session, and we'll soon let then Niilo loose here to the stage for a final recap of our messages. You know, again, if you have any questions piled up, feel free to now write them in already during the final recap, and we'll then take them after that. Thanks all. We'll move forward. Let's do that. All righty. Great. You know, we're already approaching the end of today, but I must say, I still feel excited after the presentation. Fantastic messages from Steffan and Santeri and, you know, it's a cool story that we are here building and executing. Now, let's do a quick recap of some of the key messages before we start the broader Q&A session that will wrap up the day. We started today with talking about our ambition and the market opportunity that we see. Santeri, we went into more detail about our product plans, where we are today and what's the plan for the next three years. Steffan described the three engines of growth that we are executing in the coming years to support our growth. Doing a double click on each of these, I mean, my key takeaway is that there is a growing market. Market growth is there. We have a team, a capable team with high ambitions. We do believe that we will be able to become the leading European service management vendor. Eventually that will mean Efecte being a over EUR 100 million revenue business, and also with a very high margin. What we said was 25% EBITDA margin or even above. Looking at the product, we do think that our product is best for the European mid-market, for the European public sector. We are today winning against essentially all of the competition. We are sometimes also losing. You know, as Steffan said, it's not an easy market in that sense that we just wait for orders, but the enterprise sales organization that we built is working and also the product fundamentally provides that ability to win through being competitive and providing more agility, being a joy to use, and then offering a compelling TCO for our customers compared to the alternatives. Some of the metrics like gross churn obviously show that, you know, not just that this is overall a sticky solution space that we are in, but also that the product is something that customers don't want to easily move away from. Finally, looking at the engines of growth. We do have a template for how to enter new markets in a direct way, building our own first party presence. We do have now some early experience of opening markets through a partner-led motion, and that's a motion both of those that we want to invest more in in the coming years and open new markets. The lifetime value to our customer acquisition cost metric is probably the best one to just underline that point. Now, based on this, looking forward, I did cover our guidance for this year, over 20% SaaS growth and a positive EBITDA, by 2025, reaching a total net sales of EUR 35 million or more, and this purely organically. Eventually, as said, becoming the undisputed number one player in this space. By the way, there is one small detail. I think I spotted on one of the slides where we had this. We might... It might have said 25% EBIT margin, but this is the right version. It's 25% EBITDA margin or above. Obviously, we are not capping it there. With that, I am ready for the Q&A session. Please, Steffan and Santeri and Tatu, can you join me here on stage? We'll move on to a little bit more comfortable setting. We have the Efecte beanies here. I believe Tatu is joining us here to facilitate. All right. On to the best part. Maybe we can start off with questions here, and let's see where it takes. Again, just as a reminder, you know, any more questions, feel free to shoot them any time. Who do you consider to be the founder of the company? Who do you consider the founder of the company today? Is these persons or these persons are they still active in any way? Yeah, sure. It's Jaan Apajalahti, Kristian Jaakkola, and Jussi Sarkkinen who founded Efecte, or actually a company called Bitmount Systems, in 1998. Then soon afterwards, the company changed its name to Efecte. What it means is, of course, that Efecte is a relatively old company in this space and gone through a successful SaaS transition, which I think is quite phenomenal. Today, the founders are not anymore operationally active nor are they any significant shareholders. All right. By the way, just on the questions, I really hope somebody puts in a question now live still during the Q&A. Let's take one of those, at least one of those, you know, live questions so that we show that this actually works. Let's do that. We have a question from nine minutes ago, let's start with that then. I think this goes to all of you three. Who are your biggest role models in the business world, and why? Well- I'll give that to you. I was gonna say the same to you, so yeah, that's a tough one. If you wanna think, I can start. Yeah. Go, Ed. Go ahead. I can start. Of course, you know, there are so many. Mm Great business leaders out there. One that I do want to call out is Satya Nadella. I was working in Redmond at Microsoft headquarters at the time when he was appointed CEO of Microsoft, and I think it was just great to see how he took an already successful company, but through changing or at least developing the culture of the company, how we worked at the time internally and also a little bit with outside partners, bringing a new angle into that, he's been able to further accelerate the business and also create a very positive feeling kind of inside and outside the company. I think he's done a great job there. I mean, it's hard to. It would be easy to say, "Okay, I'll go for the same," but I think for me it's been a combination of different leaders in my career. I've had the luxury of working with leaders from different backgrounds, different experiences, different nationalities. I have had an Italian boss. I had a boss from Egypt, one from Lebanon. I've had one Finnish boss. Mm. I've had a German boss. Each of those people have kind of, they have left a mark in me, and I think, that kind of those different experiences have made me who I am today, and for each of those people, I'm totally grateful for. Yeah. Yeah. That's so true. Yeah. Yeah. I think mine is very similar, and I was kind of trying to think how do I verbalize that, but I think you did a great job. I think I'd just maybe add the angle to that you kind of feel that all of these skills and competencies you need, so they have been built throughout your career. I can easily remember leaders that I've worked with who have taught me the how do you do software product management. Mm really being in a high school or college for that. Same for the services for the business side. It's a combination that you really you don't think about that unless you're being asked. It's a great question, actually, when you start to think of that. Yeah, for sure. Mm. I think great start with the first two questions. Yeah whoever asked them. I'm wondering, should we take a question from our analyst corner? Okay. Can you hear me? Yep. As you mentioned, you compete against some very large players that probably has much larger R&D budgets than you have. How do you make sure you stay competitive, considering your, in relative terms, limited resources? Yeah, that's a great question, and of course key for long-term success in this space. I don't know, Santtu, do you wanna start? Well, maybe I can start. I think the first thing obviously is the focus. If you look at us compared to those global colleagues, obviously they represent far bigger portfolio. We have instead we have chosen that we focus on the three parts of the portfolio, and we wanna be really good at those. We could, of course, also, like, expand to a lot of areas, but that would lead to that exact challenge that how do we compete with the R&D we have. I think the focus is really the key thing there. I think the second one is that we gotta be honest with ourselves every day with the customers. There's one thing how much resources you put. The other thing is that what do you choose to do. If we played smart, we listen to our customers, and we do the right prioritizations, right selections, you can be equally good, even better, even if you don't just throw around R&D money there. I think that's another thing where we at Efecte, I think we are pretty good at that. If I may add- Yeah Also another angle there, software is an interesting space where adding more people onto a problem does not necessarily translate, you know, in a linear way to better outcomes. That's right. In some cases might even be the opposite. I mean, if you look at some of the greatest pieces of software ever written or at least, you know, very significant outcomes, you look at the teams who built things like, you know, Gmail or built things like the software for SpaceX rockets in the first place, it's often been relatively small core teams. Mm ... who have made it happen. I think that's also why, time and time again, you see in the space of software, relatively small companies come up, even though you would think that, you know, given the relatively small investments, how can they do that? Yeah. Good point. Thank you. Could I continue with some more questions? Nice. You want to become the leading European alternative, but who are the European leaders currently, and what's the most important thing to take that number one spot? Oh, that's another good one. Today, we don't think there is a clear European leader. There are companies out there with whom we compete. In Germany, there are several. There is USU, Matrix42, Serviceware, et cetera. There is EasyVista in France. There are smaller ones like Easit in Sweden, et cetera. There are players, but nobody is a clear leader today, and that's why we think there's definitely a space open for that clear European leader to emerge. Okay. Looking into Germany, for example, and other countries, mainly in Southern Europe, as you mentioned, SaaS adoption is rather low. Talking to some other software companies that I follow, some say that they aren't really ready for cloud solutions yet. What's your view about that? You wanna take that, Steffan? Yeah. It probably depends on the cloud solution itself. I would probably say. I mean, when we look at this space in which we operate, customers tend to be more open. We also talked about the flexible deployment models we have for the cloud. If a customer is hesitant to move into the Efecte cloud, which we provide from Europe, we have flexible options where the customer can actually run the Efecte cloud inside their own data center, in which we then manage that as a cloud, but they have the security of having all of that in their own data center, and that's a very unique positioning for Efecte, and a real competitive advantage in these markets and in the public sector overall in Europe. Yeah, that's a great point. I think our CTO, Topias, and the team have done a really good job in terms of being able to, like you say, deploy Efecte with a true SaaS model. Mm. Run the bits physically inside the customer's data center but still do the evergreen upgrades and all. Yeah all the good things. Yeah. In the long term, should we expect or do you aim to establish a field plus channel presence in all major European markets in order to become the leader? Or could you give any hint about the strategy for the full Europe long-term expansion? Yeah. Well, I'll refer to our vision and our goal of being the leading European alternative in this space. Of course, to me, what it means is that we do need to have broad market presence. When you look at the markets where it makes sense to have an Efecte office plus partners, and you look at markets where it makes sense to potentially have only partners, I think size plays a factor, right? The larger the market, probably the more of a need and the more of a case there is for having Efecte people on the ground working with partners and customers, and then the smaller the market is, it might be a better case for operating fully through partners. Okay, thanks. I guess I'll hand over to Tatu again. All right. Thanks, Fredrik. Thank you. Thank you so much, Fredrik. Again, a good pipeline of questions here, but if any more, shoot them in. Could you add some more flavor to the ongoing talent competition that you see on your different operating markets? How do the markets differ in this sense? Okay, the question is about the tough recruiting market, the competition for talent, and then about what differences we see in the market. Well, you know, please chime in, but I'll start with just pointing out that it's definitely a competitive situation in each of the markets. What is different, though, from an Efecte point of view is that, of course, we're a much better-known brand in our home market in Finland, which means that maybe we can leverage that a little bit more in Finland as opposed to, say, Germany or Sweden. In relative terms, it's tougher for us outside Finland, but I think the overall situation is probably quite similar. I don't know. What do you guys think? Yeah, I do think the same, and there are certain kind of elements that are pretty consistently Getting a good feedback, and I think number one is that feel of our culture and the values. I think that's something that resonates in all of the countries where we hire. People really kind of get excited about that, and they can see and feel there's something unique in the culture of this company, and that's the same everywhere where we talk to new people. Yeah. Who wouldn't want to be part of this story? Building the leading European alternative in space. That's like once in a lifetime opportunity for new people to join as well, and be part of that story. I think that that's what resonate. People want to have more than a job. They want to be part of a story, and they want to be part of that story. That creates huge opportunities for all of our existing employees to learn, you know. Mm-hmm. Getting more, bigger jobs, and all of the new people that are gonna come and join. Mm ... as well. I think, that's where I think the big difference is. Well said. Yes. Continuing on the theme of the role models in business world, on a related question, which books have influenced you the most, and why? I like it. We are going quite broad. Yeah. with the questions. Yeah. Love it. Good. You can go now. You want to go. Yeah. This is easier. You can definitely go. This is easier. I mean, that's. I'm a bit of a freak because I read very little fiction. I read almost exclusively kind of nonfiction, and I do read quite a lot of books around business and technology. There's one that for me personally stands out. It's called Empowered, which is about kind of building products that customers love to use and how do you lead organization that build such products with the kind of fundamental thought that empowering product teams to drive that, to do that based on the innovation and their skill set is something that really at the end has been so far differentiating the big American Goliaths with the rest. Back to Fredrik's question, they actually argue that it's not so much about the number of people, but it's the culture of empowerment, and I really take that to my heart. That has kind of led a lot of how I shape my own leadership. I mean, there's one concept. I don't know if there's a book about that, and then there's one book, and something that stuck with me while my kind of career at Microsoft was that growth mindset, and I think there's even a book written about that. I cannot remember the name of the book, but that was kind of a kind of mind-opening kind of when you talk about the growth mindset in which you basically say that, you know, you should that everything is possible. You need to try things out, and you need to fail fast, and when you fail, you need to just go back, and you try again, and you start from the positives. The book really is a book that I met very early in my career, and it was this, was it Stephen Covey, The 7 Habits of Highly Effective People. Yeah, Stephen Covey. Yeah, Stephen Covey, yeah. That, that's a book that stuck with me, because I was sent into a leadership training. With that book and that training, and it was five days, like, boot camp with that book, and really, it struck me, and there's still so many things I take from that book with me in my own leadership. Yeah. Well, first of all, I'll just build on what Santeri said. I do actually read also some fiction. Mm especially maybe more so when I was younger, and I did love many of the sci-fi classics like Isaac Asimov and Foundation series, et cetera. So I do like that part of literature as well. When it comes to business books, I'll call out Jim Collins and Good to Great and Built to Last. I think the whole kind of research on what kind of leadership leads to best outcomes and kind of the flywheel thing where with kind of incremental, small improvements to be able to really grow business and all those concepts. That's a book that's impacted me. Good. Good choicesC We should ask Tatu some questions. Yeah, Tatu. Come on. We should ask Tatu some questions. You can still go on, and we're gonna figure a question for you as well. No, the book question. Yeah. Yeah. Yeah. That's true. Yeah. You are reading a lot of books. Yeah. I do. That's a good question. Maybe the first one that comes to my mind, I think, Thinking, Fast and Slow by Daniel Kahneman and Amos Tversky. It's a classic, and you know, it was like an eye-opener for me, you know, to realize when I first read it years back, you know, how we are all fallible as human beings. Very cool. Good. Yeah. We should do, like, you know, arrange a special Efecte book club sessions to, you know, follow up on this. Yeah. Definitely. A web page. Yeah. Kind of Efecte recommendations. Let's not go there. Let's go to those kind of CMDB questions. Yeah, yeah. Let's now, like, to business again. Why do you not forecast the profitability improvement in already 2022? Is this due to continuing focus on increasing the sales costs? Why do we not forecast continued profitability improvement for this year? It's because of the investments into growth that we are making and those investments into growth go into sales and marketing, and they go into the product and a few other supporting things. I think kind of the main thing I would highlight is really just building on that good lifetime value to customer acquisition cost ratio, with that ratio being at, you know, even eight last year, to me definitely indicates that it does make sense to invest a little bit more into the go-to-market, and that's what we're doing as we speak. Yeah. Yeah. Good. Question about our employees. How many% of our employees are shareholders? Oh, it's a pretty big percentage actually. It's not 100%, but it's not that far. It's definitely above half. It's probably, I would estimate 80% or so. You might know better than me. Yeah. Well, the background probably is that we had a share reward for our team. I would say two-thirds probably in that ballpark. Yeah, yeah. I mean, a year ago when we did that, it was essentially everybody. Exactly. We've had more new people join since and you know they have yet gotten to be owners of the company, but of course that's a concept that we very much embrace and encourage. Mm-hmm. I mean, even if you look at the option program details, there is always a share investment requirement there, et cetera. I definitely think it's to the benefit of everybody, you know, the bigger the ownership is. Definitely. Good. Continuing on the employee topic. Of the 9.6% of employees that left Efecte in 2021, what were the main reasons? Oh, what were the main reasons? I don't know if there was any one main reason. I would more say... I mean, just to put it in context, 9.6% of the 100 plus people we had in the beginning of the year. We're talking about, what? 10. About 10 people. Mm-hmm. I think there were some who just got the offer one cannot refuse. Mm-hmm. There were a few who wanted to change what they do, you know, technology-wise or kind of function-wise. Mm-hmm. There wasn't that kind of immediate opportunity for Efecte. There were just, you know, personal reasons, et cetera. I don't know. Would you- No Do you have anything to add? No, I can't find any specific kind of trend there, and I also need to say that that number is really good in the market. Mm-hmm. While it might sound big, I think it's. I'm really proud of that number. Yeah, the other way around. Let's play a little bit of mathematics. I mean, 9.6% attrition rate means that on average, people stay at Efecte over 10 years. Mm-hmm. Exactly. Like Steffan pointed out, compared to the industry benchmark at the time, I mean, this based on anecdotal evidence, me talking to other companies. But definitely it's my strong feeling is that it's a good position to be in this market. Yeah. Yeah. Good. Next question for you, Niilo. The question is, your passion is admirable. How long are you planning to stay at Efecte? I don't see any, you know, in the same way that I don't see any ceiling for Efecte's growth. I don't see any ceiling for me being at Efecte. Like I've pointed out many times in on the earnings webcast and internally, I'm excited about what we are doing here. Building European software and building European digital platforms is something that I think is so important for essentially the future prosperity and happiness and wellbeing of this part of the world, maybe even the whole world. Here at Efecte, we are for our own small part doing that, building a strong European alternative in service management. It's just a mission vision that I love to be part of. We have a great team here. I always say I'm in this for the long term. That's good to hear. A couple of questions on M&A. You have previously communicated that Efecte focuses on add-on technologies as targets for M&A. In your strategy update, you now also mention expand market presence through acquisitions as another possible scenario. Could you please elaborate on this? Yeah, sure. Maybe Steffan, you can also help me out with this one. Essentially what we are saying is that we do think that acquisitions could be a way for us to accelerate our growth in selected geographies. As discussed, it takes always time to recruit and find good people. If there was a good team of, let's say, salespeople, consultants who can help with the delivery projects of Efecte, an acquisition could make sense to boost our sales and delivery capacity in one of the existing or new markets. Through expanding our customer footprint, an acquisition could take us faster to a broader market presence. If you look at our current teams, we definitely want to grow our presence in Sweden. We want to grow our presence in Germany as we are growing also in new markets, because to reach critical mass. I think in Germany we're actually close to getting there. As you've seen our headcount is growing there and will keep growing. I think a good target, kind of, next milestone would be to get to 20 people in Germany. I think that improves the resiliency of the team. Then eventually get in Sweden to the same type of size. Acquisitions could provide a shortcut to further growth from there. It's not an easy shortcut, we all know that, but it is definitely something we are at the moment evaluating. Yeah. On the same theme then, the next one. Efecte has, to date, not concluded any M&A transactions. Could you elaborate on your approach and practices related to M&A? Yeah, that's a good one. First thing I'd like to point out is that we've also started kind of bringing in expertise in this area, even in our board of directors. We have Eric Gustavsson now proposed to become a new board member, the annual general meeting permitting. He comes in, he brings with him amazing M&A experience, and I think he will definitely boost our expertise in that area at the board level. We do have people on the management team, including myself, who have both acquired and gotten acquired, kind of seen both sides of the coin. As always, it starts with the people. We've also put some process in place. Of course you yourself, Tatu, you have been playing a big role there, facilitating our M&A project. I mean, we do have an investment bank helping us out there. We do have a pipeline, a funnel approach, like in sales. You know, there are like early screened candidates and then there are companies we've talked to, and there are companies to whom we have talked already for a longer time. Then some of those get qualified in or out at different stages, and it works almost like a sales pipeline. That's the general approach. Yeah. Yeah. Good. Next up, what kind of actions do you take at Efecte to increase diversity in leadership? Well, I've been commenting a lot, so maybe you want to start. Yeah. Yeah. It's a really good question. I mean, diversity comes in different forms. You know, there's diversity of gender, there's diversity of thought, there's diversity of experiences, there's diversity of so many other things. The way I see it is that just that diversity of the team in all of these angles. I mean, if you come and you look at the roster of people at Efecte, I would say we are a diverse team. We have kind of combination of all of these things. We have different nationalities, we have different experiences. You know, I mean, our working language is English mostly. You know, everything we do is English. I mean, in a way, we are in a good position, but, you know, you are never ready. It's something you need to work on every single day. I think it's our responsibility as leaders in this call today here. It's the responsibility of our managers at Efecte and our leaders at Efecte. And it's also responsibility of every single employee at Efecte in a way that when we have new position and new openings, we need to be really open-minded and kind of try for that diversity in, on multiple angles. That would be just like high level overview of that. I think it's important, and it's gonna be one of those key metrics for success. Yeah. No, I fully agree with that. Maybe just to add that it's, as a leader, I mean, there's no better feeling than when you see that a person with a new perspective, different background comes in and starts to create that impact. We've got a lot of those type of examples. For example, last year, people from different countries, different cultural backgrounds, different work backgrounds coming in and, a few weeks when you start to see that how they start to radiate kind of a new thinking, a new type of energy, it's just amazing feeling. Yeah, great points. My own experience simply is that diverse teams perform better. It's also the right thing to do. Right. There is also, I think, a clear business rationale. Mm-hmm for ensuring diversity and the like, Steffan, you pointed out, I think we are in a pretty good place at Efecte and we will continue to put effort in ensuring continued diversity. Yeah ... across all those angles, that you pointed out. Yeah. Europe is a big place, right? We wanna be the undisputed European leader. If you look at lead Europe, it's a diverse Europe. We're all sharing the same values and the value system, but it's a diverse area, and we need to be diverse in a way if you wanna go to that market. By the way, just wondering if you would like to recall top of your mind, I believe in the ESG report, we did report some data points on basically, you know, gender distribution, et cetera. I can't remember top of my head, but I think one interesting angle without remembering the exact numbers is that I think we have done a good job of having that gender diversity at all levels, board of directors, leadership team, and then all of the Efecte team. Sometimes you see a pyramid that's, you know, one shape or another, but I think we have pretty good diversity at all those levels, which I think makes us a better team. Yeah. Agreed. Always room for improvement, but we're on a good track. Good. We now still have a couple of more questions, but, you know, if either from the analyst corner here or from online, there is more questions now is time to shoot. Fredrik, do you have question? Yeah. I have a few questions if that's okay. You want to finance your organic growth, at least with your own cash flow, and I mean, given the current market conditions, that seems very reasonable. However, if conditions were to improve, would you consider raising additional funds to boost growth even further? It's another good question. We will keep looking around in the sense of, or maybe watching the market is a better term, and evaluate all the options that are out there for growing as fast as possible and with the best long-term profitability and other outcomes as possible. You know, we are not excluding any kind of course of action going forward. Now, as you pointed out, obviously, you know, we just announced our updated strategy. We feel good about it. What we focus on is executing that strategy. We definitely remain aware of what's happening in the market. I mean, I keep repeating myself, but we are in this for the long term, and we do always want to prioritize long decisions that are leading to the best long-term success for this business. We will keep doing that also in the future. Okay. As you mentioned, you have a solid net revenue retention of about 115%, but could you elaborate a bit on the difference between quite young customers and really old customers? Are there any substantial difference in the net revenue retention? Oh, that's a good question. Yeah. I'm thinking how to answer that. In a way, if you look at the elements of that NRR, it's basically, you know, your existing installed base, how much of that installed base you lose as churn, and how much you add. Mm On top of that. I would say that we have customers that just this week a customer that has been Efecte customer 15 years placed a new order for new incremental licenses. You have customers that have been there for a long time, and they still expand the Efecte usage. You know, they acquire new companies. They take new use cases. And then you could have some customers, you know, that have been there for a short time. They get acquired, for example, and the big company or the company they get acquired they have a different platform. At that stage, we lose the Efecte platform because they become part of a bigger company that has made other decisions. There's no clear I would say there's no clear differentiation between the, let's say, the life cycle of that customer. That would be my kind of thought about that. How about Niilo, any- Yeah. No, I think you put that well in context framing kind of what are the components of that net retention. Back to your question, Fredrik, I don't think that we would see any, correct me if I'm wrong, Steffan, but I don't think we see any, at least any massive differences so that suddenly new customers would not anymore expand or that old customers have completely stopped. We see both older and newer customers expanding their Efecte usage. Interesting. One last question from me. Why does it make sense to have ITSM and IGA on the same platform? What are the benefits? Maybe. Sounds like your question, Santeri. Yeah. Niilo and Steffan are both looking at Santeri. I can answer as well, but Yeah. Well, if you think of it's obviously you can get the same functional use cases even from two different products. I think we are not obviously kind of debating that. As soon as you have two different products, you need to spend effort on planning and managing obviously the integration, how you do upgrades, that compatibility always works after you change something little here so that we don't break anything on the other side. The administration often is not a single person, but it's two different teams. The operability may be very different between the two products. That's an effort that maybe a bigger company can afford to. For a mid-market company, we really ask the question that why should you spend money on that type of operation once you have an option that you can actually streamline that whole operability, upgrade ability, maintainability, and spend your money somewhere where it creates more value? I think that is the key thing why mid-market companies actually you know, the light bulb kind of lights up when they realize that actually there is a lot of operational benefit I can achieve if I have both of them in the same platform. I have something to add there. Mm. I was just in a customer meeting last week, and we talked about exactly this question. Then we went into a discussion on the ITSM side. Like, if you look at all of those service requests you get into your IT, can you kind of explain what those service requests are? Then, you know, if they start from okay, my Teams app doesn't work, and then we went into that discussion and they said, "Okay, if you look at all of these things, actually 30% of all of these service requests are requests for access. Mm. Right? I need access to that file share, I need access to SharePoint, I need access to that, and that's where that beauty comes in. Mm-hmm. We say, "Dear customer, we can digitalize and automate those things for you. We're gonna take 30% of manual work away from your IT organization. We're gonna put that on our IGA. You get all of the tracking, who has which access where. So a person leaves the organization, we're gonna disable everything, we're gonna activate." That's where the light bulb goes up and I get you. Mm. Now I know why I need to get that piece as well. There's a kind of a really good TCO message, agility, and kind of providing that whole experience for the end user. That's a good answer. Thanks. Great. We have at least three questions still in line, but now a final call for additional question from on the line. If anything now pops up, please write them in. We're gonna be back in April anyway for Q&A again on the Q1 results or is it April or May? Can't remember. Yeah, April. April 20th. End of April. Yeah. When is it again? April 20. 29th. 29th. Yeah. Yeah. When you speak to investors and analysts, what do you think are the major misconceptions about Efecte? We should Major misconceptions about. Well, first of all, let me point out that I do think that the investor community overall understands SaaS businesses much, much better than what it was when Efecte placed it during the IPO in 2017. I think overall that understanding of the SaaS business model, the SaaS metrics, and overall the kind of dynamics around our type of companies has increased tremendously. With that also, I think some of the misconceptions, you know, it's much less misconceptions than before. Also overall, I mean, when I think about the questions that come in and also some of the, say, one-on-one discussions we have at times with institutional investors or so forth, in general, I feel the questions we are getting are very relevant. Mm. I would even say that very rarely do I feel that these guys really got us wrong. I would almost like turn it around and say that I mean, we don't feel that there are kind of massive kind of problems in understanding what we do at least amongst the people who we meet with and talk to. Yeah. I would say that as well, and I think we overall, and hopefully that comes to the investor community, we try to be transparent, so we have tried to release as many SaaS metrics as we can. We tell a lot about our business. You know, we communicate quarterly. We have a quarterly call. We're gonna do the CMD, so we wanna be transparent on the other side. I myself feel that a lot of the questions we get, those are really good questions. They made us, they make us think as well, like, "Okay, that's a really good angle. That's a really, really good question." I think I feel, you know, happy about that kind of relationship and discussion we have been having with all of you on the other side. Yeah. Spot on. We have a new question from the line, so let's take that here in between. How do you see your TCO for the customer versus other mid-market competitors in ITSM/ESM and IGA? Ah, that's a- Three-part question. Big question. Kind of three in one. What is TCO? That's probably the first thing to kind of break that down. From a customer perspective, right? They look at the kind of direct and indirect cost of the solution. You have the cost when you acquire the application. Mm. You buy the SaaS service, and then you have all of that professional services and support cost during the lifetime of that system. Surely you have all of the business benefits you get out of that system that you then bring back to your solution. When we talk about TCO, we really talk about that lifetime value for the customer. I think there, these things about agility and experience make a big difference. You know, we have customers saying to me in a customer call that, "You know, it was amazing. I was able to do this change in Efecte in three days. It took me a month to do that in the past." I think so that's a really important element of that TCO as well. So far, I think we've been competitive in the mid-market space. I cannot remember an opportunity which we would have lost because of price itself. There's always been some kind of a different reason. Mm. You know, we haven't been the perfect fit, or they've been looking for something else, and I mean on the IGA space, I think you can maybe, Santeri, kind of explain that. There we definitely have also a really, really good kind of direct price advantage. Yeah, I mean, in general, I think we take the TCO advantage as it's really important, and that's why we keep working on that all the time. IGA is a good example where, as we explained, we see the market opportunity to go with the very easy-to-start solution. We actually invested quite a lot of product development to create a package, an IGA Starter package, that's pretty unique. We really don't see anybody else out there with a similar starter package that allows you also the entry barrier and the entry cost to be very friendly, so you can get started and it builds up from there. Just to give everybody an idea, it's like EUR 1,000 starting. Yep EUR 1,000 a month, right? It's about EUR 1,000, yep, a month. That's a really, really good competitive price for any company to get started with identity governance and administration. Also maybe, I mean, great point you made. Maybe only one thing to add is that, of course, I do want to avoid also a misconception that we would always be the cheapest. Mm. I mean, we have pricing that makes sense. The TCO, like Steffan mentioned, consists of many parts, not just the kind of license piece there. I just wanted to make sure that's also- Yeah, really good point. That's also clear. Yeah, because my point was not to say we have not lost because we have been the cheapest. It's we have not lost because of. Yeah, sure. the total TCO. Exactly. Yeah, good point. Good catch. Good. Tatu, one more, and then it's a wrap, or are there more? Two more. There's always two more. Yeah. Yeah. The bucket just keeps on filling. How do you avoid groupthink/peer pressure? Okay. Now we are again going general. Philosophical Leadership/philosophical. What were those things? Group thinking. Group thinking peer pressure. Peer pressure. I assume just kind of breaking it up how I understand it, how do we ensure that we are not too uniform in our thinking, kind of as you hopefully recognize this team, and I would say most effective teams kind of like working together. Of course there is a danger sometimes that, you know, you start to be a little bit too, in a way friendly with each other. I think that goes back to Efecte values. One of our four values is challenge. The way we always speak about challenge and how we think about it is that it starts with challenging ourselves. You know, first look in the mirror, challenge myself. That gives me then the right to challenge others. It's also not just my right, but responsibility to challenge others at Efecte. Mm. Challenge my colleagues and accept challenges to my thinking, and that makes us all make better decisions, and overall do a better job at Efecte. I think it also actually shows in our day-to-day leadership, but I think one good example is that in our governance model, we have forums where we have really cross-functional business leadership, like Niilo referred earlier to our extended leadership team, which is a combination of all the kind of the functions in the company. I can say it's not always like we all sing the same song. We actually debate. Sometimes people have different opinions, and then we can have tough discussions, which I think we do need to have, and that's also reality. At the end of the day, we gotta make decisions and move forward, and I think on the values part, I think Efecte is great on once we decide something, I think we all execute on that, so. Yeah. Yeah. You know, to gloss over something you discussed earlier is this also, you know, the diversity part. I think that also plays a big role in avoiding the group thinking. Great point, Tatu. Mm. Yeah. The final question. Do you have a process to learn from failure? Do we have a process to learn from failure? You know, the most obvious one that comes to my mind is kind of loss reviews and looking at- On sales opportunities on sales opportunities. Looking at, you know, the cases where we did not win, which is something we, That sadly happens. As surprising as it is, sometimes we don't win. We will also have, like, if for rare occasions we have a bigger software fault, so we do root cause analysis. Mm-hmm ... which basically leads to learning, and, as part of our development process, we do continuously retrospect, which is also kind of, inbuilt learning in your development process. Yeah. One of my favorite saying is, and I'm gonna say it once more, what is the biggest room in the house? The biggest room in the house is the room for improvement. Mm. That's how I wanna think about it. You know, we have big aspirations. We have a big goal ahead of us, and we are not gonna get every single step right. Mm. We're gonna do mistakes while we are go into the path we wanna go, but we need to learn. We need to change course correct and go once more. If we hit the wall again, we're gonna go again. If we hit the third time, it starts to hurt, but we're gonna go once more, and we're gonna find a way to get there, right? At the end of that path, Efecte will be the undisputed number one in our space, the leading European alternative in service management with over EUR 100 million revenues and an EBITDA margin exceeding 25%. What an amazing summary. Hear, hear. All right. I believe that brings us to the very, very end. Thank you all. Well, thank you, Tatu, and hey, thank you, everybody online watching and hanging in there until the very end. I really appreciate the questions and all the support we get also from you guys. Thanks for being part of the Efecte journey. Thank you, Fredrik, for being on site as well. Thank you.