Welcome to this presentation of the results for the interim report, Q2 H1, 2023. The results will be presented by CEO Peter Lauring and CFO Mads Skovgaard. Now over to you, Peter and Mads. Thank you, Lena. Thank you for... To those who are joining us today. Agenda for today is financial highlights for 2023 on group level, performance in our divisions, and acquisitions done to date. A little deep dive into our profit, loss, balance sheet, and cash flow by Mads and overall evaluation, and we will answer questions by the end of the session, should there be any. First, we are coming out of Q2 2023, with a revenue of NOK 877 million and EBITDA of NOK 122 million. Total revenue growth at close to 25%, of which 6% is organic growth and EBITDA margin of 13.9% compared to 13.7% last year, a slight improvement. In the first half year, we have delivered a revenue of a little more than NOK 1.7 billion and EBITDA of NOK 237 million. Free cash flow amounts to NOK 167 million, and the growth is a little above 25%, whereof the organic growth is 8.4%. EBITDA margin at 13.6% compared to 13.2%, same period last year, so some improvement for the first half year. Overall, 25% revenue growth, improved margins, and growth in free cash flow, fairly okay for the first half year. Into divisions. First, our largest division, the F&A division, coming out of the first half year with a revenue of NOK 1.1 billion and NOK 33 million. A little marker here, it's the first time ever that we deli... That one of our divisions are delivering NOK 1 billion in revenue in the first half year or in a half year at all. So a little sign for that. EBITDA, NOK 179 million. Revenue growth in the division, 30%+, with an EBITDA margin of 13.4%, compared to 16.6% last year. The underlying organic growth in this division is considerably better compared to the same period last year, as well as the margins are improving, coming very much from that we did some large mergers last year that we now are seeing the end of the merger effects, and see the positive effects of the consolidation efforts we are doing. And on a more high level, the five largest companies in the division accounts for approximately 50% of the business in the division. In the IT division, we are coming out of the first half year with a revenue of NOK 705 million and an EBITDA of NOK 78 million. Revenue growth, close to 19%, with an EBITDA margin of 11.1%, compared to 10.4% last year. Organic growth in the IT division is on par with the organic growth from H1 2022, except for one area, consultants for hire, who is affected by a change in Norwegian regulations that has affect the organic growth negatively. We see that this effect will leave us or not affect, be absorbed into this business area within three, six to nine months. It will take a while, but we can see light at the end of the tunnel. We can see the margin is improving as well here, as an effect of that we can see the end of the large mergers we did in this division last year. Consolidation-wise, here, the five largest companies accounts for 75% of the total business. In the tech division, we have decided to change the what we account into the, which type of revenue we take into account in this division, compared to how we have done it in previous quarters, previous years. We have decided to focus more on ECIT-owned software only, meaning that consulting revenue that accounts for or comes from other consulting revenue still attached to software, now have been moved from this, not to be calculated in the tech division, but instead to be calculated in the IT division. It accounts for NOK 15 million for the first half year, but it will have the effect going forward. As well, when we measure the annual recurring revenue, we have changed so we now only accounts for, or show the revenue for ECIT-owned software, meaning that because that's, that's, and that's the focus for how we are building the division going forward. With that in mind, we are coming out of the first half year with a revenue of NOK 73 million and an EBITDA of zero, with a revenue growth of 23%. On the annual recurring revenue measurement-... 105 million is the annualized value by the end of H1, or the revenue by the end of H1, 2023, compared to 80 million by the end of the first half year, 2022, or an organic growth of more than 30%, which we are fairly pleased with. Acquisitions in 2023. All in all, we have up to now made nine acquisitions, which has improved the revenue in ECIT with an annualized value of NOK 230 million, and EBITDA average of approximately 15%. We consider acquisition activity to be according to plan. We will mention Dataplan as the largest acquisition we have done so far in 2023, a revenue close to NOK 100 million, and we have laid the foundation to start a new business area with the acquisition of ESG Trackr and ECIT Sustainability. The first tracker is a reporting tool to report ESG reports for our clients, and ECIT Sustainability is consulting around the ESG area to be provided for our clients as well. Then a comment regarding the valuation of ECIT, because this is an area where we quite often get questions, and we would like to address it, so we can tell a little bit about how we see ECIT, how we think ECIT could be valued. First, the ECIT strategy overall is we are building a group, we are not building a group of companies. And we see the options to be the bridge between when a company is acquired and at the end of a period where it's fully consolidated, we are able to use... We will use the option, meaning that it's a consolidation thing from acquisition to consolidation, and then the option is the instrument to make sure that we continue the business in the right way from acquisition or until it's consolidated into the ECIT group. All options are to be exercised gradually over the period, and no options have an expiry date later than 2030. The multiple to value the option is +4x EBITDA. To put that into an example, we have made two calculations, one based on the end of 2021 annual report, where with a share price of NOK 6.42 and an EBITDA last 12 months of NOK 339 million, can calculate an EV/EBITDA multiple at 10.2x. Comparison by the end of June, with the share price June 2023, one and a half year later, with a share price of NOK 838, and LTM EBITDA of NOK 501, meaning almost 50% growth, can calculate an EV/EBITDA multiple at 9.7. And with that, Mads, over to you. Thank you, very much, Peter. A few comments to our financials for the second quarter and first half year of 2023. In Q2, we can continue with the satisfying revenue growth figures, almost 25% in total, whereas our organic growth was 6%. Similar conclusion regarding our first half year, where our total revenue growth was just above 25% and organic growth was 8.4%. Currency effect was positive, both in the quarter, but also for first half year, whereas the currency effect had an opposite effect last year. Looking at our EBITDA margin for the quarter, we came out at 13.9% versus 13.7% last year, and for the half year, 13.6% compared to 13.2%. The positive development in our earnings can be explained by the ongoing consolidation and integration of our business, in combination with some good performance in our base business, not impacted by mergers. Our earnings per share for the quarter, NOK 0.6, NOK 0.06, compared to more or less the same level as last year. The earnings per share result for the quarter is somewhat impacted by higher group cost coming from group project, which we expect to be completed within the next three to six months. Cash flow and financial position. We are quite pleased with the development in our cash flow from operations, NOK 235 million for the first half year, compared to NOK 140 million last year. The increase is mainly explained by our improved EBITDA result and also positive development in our net working capital. Worth mentioning is that last year, the change in net working capital in the second quarter was low as a consequence of timing in our customer invoicing, and this has not been the case this year. The solid cash flow from our operations is also reflected in our free cash flow. We ended this half, first half year with NOK 176 million, compared to NOK 96 million last year. As expected, we had a few acquisitions in June and also during Q2, and that has naturally also increased our debt position. However, our financial gearing remains low at 0.9 x EBITDA. The financial headroom, when we look into our undrawn revolving facility, we have still NOK 350 million. We have initiated our fifth share buyback program, which we announced as of today, where the intention is to buy back shares representing NOK 12.5 million. Similar to previous completed, the purpose of the program is to acquire shares that can be used as part settlement in connection to acquisitions, our incentive schemes, and also for general corporate purposes. Our key financial target, we have decided to change the financial M&A target. Previously, the M&A target was a static measurement amounting to NOK 350 million in annualized revenue. Going forward, the target will now be a dynamic and measured as 10% of our pro forma revenue measured last 12 months. The change has been made as a consequence of the business is growing, and so is the acquisition capacity, which we believe is better reflected in a dynamic measurement, which eventually will lead to a adjustment as we move forward. And it's important to emphasize also that no other financial targets has been changed. And with that, Peter, back to you. Thank you. Overall evaluation of the first half year, we have had a satisfactory revenue growth, both on the M&A side and on the organic side. We have improved margins, also both EBITDA and EBIT margins, very much coming from our mergers and consolidation effects that gradually shows its value in the increased margins we are producing. Our M&A activity is in line with our plans, and we have now made the financial target for acquisitions going forward, more to be in line with how the business are developing. We have a solid or almost unchanged M&A pipeline and the financial headroom to actually do the acquisitions we perceive as reasonable to do. So all in all, we consider our first half year to be according to the plan that we are following long term. So with that, thank you for now, and thank you for your attention.
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