Good morning, and welcome to House of Control's third quarter presentation. My name is Carl Fabian Flaaten. I'm the CFO of the company. Our growth journey continues and has accelerated with the acquisitions we carried out over the past year. ARR increased by 39% from the end of September 2020 to NOK 186 million at the end of September this year. Organic growth was 19% with the rest coming from the acquisitions of Effectplan in Q4 2020, Business Analyze in Q2 2021, and Egreement in Q3 2021. New sales over the past 12 months amounted to NOK 30 million. This is supported by a larger sales force and new products and is clear proof that we have an offering that gets the CFO's attention. We maintain a strong prospecting pipeline. Net retention of existing customers is also crucially important. Over the past year, this has been slightly negative, mainly due to churn of some on-premise customers acquired through DinERP. I'm very happy to tell you that net retention is moving in the right direction and was slightly above 100 in the third quarter. As I have talked about in earlier presentation, we believe our progress should be evaluated over time, and this graph show the revenue development on a running 12-month basis. For the third quarter isolated, we report a 32% increase in revenue to NOK 44.2 million, with a combination of 18% organic growth and the acquisitions. Year-to-date growth was 43% to NOK 124.5 million, and growth the last 12 months, 43% to NOK 161.9 million. The recurring revenue part of total revenue remains high at 93% for the first nine months and 94% for the third quarter isolated. We are investing in growth, in more people and more value-added products, and over the past year, we have increased our employee base by 48%. As you can see from the graph, we have expanded significantly across both development, sales and marketing, and our customer success teams. Growing the organization at this pace puts pressure on current earnings. The reported EBITDA was a negative NOK 7.4 million for the third quarter and a negative NOK 3.6 million adjusted for special items relating to special projects, timing differences, and redundancies. We are confident that these investments will prove invaluable as we continue our growth towards the NOK 500 million in ARR that we are targeting four years down the road. Turning to our operations. Many of you will have heard about our purpose and where we come from in previous presentations. Our software originates from a contract management system that provides the CFO complete control over contracts, assets, and obligations. We've come a long way over the recent years and now offer a lot more than contract management. Over the past 18 months, we have added business process systems, forecasting and budgetary systems, and a variety of analytics, reporting, and business intelligence dashboards. With these elements in place, we can take a broader role in our partnership with the CFOs. Our platform offers best-of-breed products that empower the CFO, facilitates efficient operations, and provides seamless integration with incumbent business systems such as ERP, CRM, and HR systems. This is a unique offering in our markets. You have previously seen us presenting our offering as Complete Control, supplementary solutions, and business process solutions. Reflecting the direction we've taken with our acquisitions and our own product development, we believe this pyramid better represents how we are building a stack of solutions on top of our Complete Control offering and expanding the CFO ecosystem. The control segment is the fundament. Complete Control with contract and subscription management, notifications and alerts, as well as our authority matrix, creates a strong foundation for an expanded offering. The business process segment offer digital signature, procurement, and supplier management systems. The compliance and forecasting segment includes our IFRS 16 solution, a Fintech Outsourcing Register, and our budgeting and forecasting solutions. At the top of this pyramid, we have our insight offering with business intelligence and analytics as well as the recently launched CFO Dashboards, enabling the CFOs to get a total overview and providing actionable insight for operations and strategic purposes. The business process part of the pyramid was established with the acquisition of DinERP last year, where we took their enterprise solutions and adapted them for our platform. This offering was further strengthened with the acquisition of Egreement in September. Their Egreement API and web services further improves our contract management and workflow solutions, adds digital signature and authorization features through BankID, and strengthens procurement and supplier communication with digital forms. Egreement has been growing rapidly to an ARR of NOK 12.7 million from more than 300 customers and 1,600 users. The customer base covers all industries. The company has a particularly strong position in the Swedish real estate market. As I mentioned, Egreement has been growing sharply. The number of users increased from around 600 at the end of 2019 to more than 1,600 today. At the same time, the users are using the solutions more frequently, and the number of agreements signed through their digital signature solution has increased more than four-fold from some 38,000 to almost 160,000 in the same period. This is going to add to our growth going forward. Turning focus to the top of our pyramid, we are proud to have launched and already sold contracts on our CFO Dashboards. The dashboard provides CFOs with a central control center for analyzing, reporting, and presenting key figures. This cloud-based standard solution connects directly to CRM and ERP systems. SuperOffice and Visma connectivity is live. We're in the process of completing plug-and-play capability with all other most frequently used suppliers in the Nordic countries and will make sure we keep the system updated with new versions of these and others. The solution can also be extended to retrieve, combine, and visualize data from other incumbent business systems and a variety of data sources. Here you see a quick view of four key areas covered in the CFO Dashboards solution. Sales, liquidity, key performance indicators, and reporting. In combination, these areas can provide the CFO with the full overview of finance and operations with one single login. We're moving fast to strengthen our insight solutions, and just last week announced the acquisition of Keyforce in Norway. Keyforce offers integration solutions enabling integration of ERP, CRM, HRM, and other incumbent business systems. The solution is already integrated with systems from all the supplier logos you see here, and more is set to follow. The acquisition significantly strengthens our integration capabilities and future business intelligence offerings. It also adds NOK 14.5 million in ARR from more than 850 customers and approximately 19,000 end users across all types of industries in the Nordics. Turning to our financials, I've already mentioned that we saw 39% year-on-year ARR growth in Q3, split almost evenly between organic growth and acquisitions. Looking at the third quarter isolated, we increased ARR from NOK 169 million to NOK 186 million, with NOK 13 million of the increase coming from the inclusion of agreements. New sales were somewhat lower than in previous quarters with our sales teams on summer holiday in the month of July. New sales for the quarter increased 19% year-on-year. New sales so far this year are 82% higher in the same period last year, and we maintain a strong prospecting pipeline. I am very happy to tell you that we saw the first quarter in a while with net retention rates above 100%. In previous quarters, the progress in the core House of Control offering has been outbalanced by churn of non-core on-premise customers in DinERP, which has less of an impact this quarter. All our geographies continue to show growth, with parts of the increase in Norway explained by the inclusion of Business Analyze in April, and parts of the increase in Sweden explained by the inclusion of Egreement in September. It's very encouraging to see the strong momentum, fighting spirit, and great progress in all our markets. Measured in terms of product segments, our cloud-based products and services now account for more than 90% of ARR, with the harvesting on-premise portfolio representing less than 10%. Control is by far the largest area, accounting for 69% of ARR, with business processes accounting for 9% and compliance and reporting and insight for around 6% each. The latter is obviously going to increase with the inclusion of Keyforce in the fourth quarter. We expect strong growth in all segments moving forward and project that the control segment will represent around 55% of total ARR at the end of 2025. We have already discussed the revenues and the high investment in more people, which led to a negative EBITDA in the third quarter. Depreciation and amortization amounted to NOK 12.2 million in the quarter, and operating profit hence showed a loss of NOK 19.6 million for the quarter. Capitalized R&D was NOK 6.8 million in the quarter, with R&D CapEx intensity relatively stable at 15% of revenue. For the first nine months, adjusted EBITDA was slightly positive at NOK 1.5 million, with an operating loss of NOK 45.3 million. Looking at cash flow for the first nine months, we had negative net operating cash flow of NOK 29 million, including NOK 14 million in net working capital. Cash outflow from investing activities was NOK 80 million, split between NOK 57 million for the acquisition of Business Analyze and license agreement and NOK 23 million in R&D CapEx for software development. Cash flow from financing was a negative NOK 24 million, including lease payments, debt repayment, and interest. We ended September with NOK 214 million in cash. Turning to the balance sheet, the total asset base is roughly the same as it was at the start of the year, although we have invested parts of our cash into non-current assets through the acquisitions and our R&D CapEx. On the other side of the balance, equity has declined in reflection of the losses. We currently have an equity ratio of 54%. As I mentioned, the cash balance was NOK 214 million at the end of September. In combination with the committed capital and acquisition facility of NOK 198 million, this continues to offer a strong funding platform for our growth strategy. All the figures you've seen on the previous couple of slides have been prepared under IFRS, whereas we previously have been presenting under NGAAP. For the record, we have today also issued our IFRS financial statements for 2020 with comparable figures for the 2 preceding years. Year to date, the main effect of the change in accounting standard is that EBITDA and EBIT improved somewhat, and that our net loss was slightly lower. The conversion to IFRS reflects the preferences of our international shareholders and enables a potential up listing from Euronext Growth to the main list. As you can see from the table, the change in accounting standard has 0 effects on revenue. The main effects on EBITDA is the treatment of leases under IFRS 16, expensing of acquisition costs, and ARR bonus. Overall, these changes improves EBITDA NOK 4.7 million for the first 9 months, whereas our operating loss is reduced by NOK 2.9 million. Net financial cost increased due to the lease payments, and the positive effect on the loss before tax was relatively modest at NOK 1.5 million. Looking at the balance sheet, the main differences are, once again, the treatment of leases under IFRS 16 and the treatment of transaction costs and identification of goodwill on acquired companies under IFRS 3 business combinations. As a result, the total balance increased by NOK 17 million as an effect of the change in accounting standard, with equity being reduced by NOK 8.6 million to NOK 289.8 million. Now, rounding off with our outlook, we see continued growth opportunities and have significantly expanded our market opportunity with acquisitions. Continued growth is built on four key pillars. We see a large untapped potential in the Nordic market. We see strong potential in cross-sales to the customer bases we have acquired and a large upselling potential in the existing customer base with the products and solutions we have acquired. We will continue to support our organic growth with more acquisitions going forward, and we see several attractive European market opportunities outside of our core markets in Norway, Sweden, and Denmark. Our ambitions remain the same, and we reiterate our target to reach NOK 500 million in ARR by the end of 2025. This requires a step up in organic growth with both strong new sales and improving net retention rates from the current level. We are confident that our continuously growing and improving product portfolio and stronger development, sales, and customer success teams will enable us to reach these targets. Our growth investments are currently holding back our margins, but we remain confident that the margins will increase with our scale over time towards our 40% long-term target. Last but not least, we will fulfill our vision of being the CFO's best friend. Thank you for your attention. I'd like to open up for any questions you might have now. I see we already have the first question. It's: When do you expect to reach the organic growth rate of 30%? Which is our target. We haven't provided any specific guidance on a yearly basis for these ambitions. What we have clearly said is we are targeting a compounded annual growth rate on average for the 5-year period at 30%. As we have said also, we are confident that with the new products and the acquisitions and the offering and the build-up of our team, that we will reach this, and we are on track to reaching our ambitions. The next question is: You've now acquired 5 businesses over a short timeframe. How is the integration of these businesses progressing? We see, I think, really well is the key answer. We are in all the acquisitions, we are able to onboard the companies very efficiently. We have the capacity in the organization to ensure that we bring them into the family in a good and effective way. We're already seeing results of the sales machine and of the products, and we're starting to get really good upsells and cross-sell opportunities. Yes, we are very happy with the integration activities. Next question, what's the market strategy to increase market share in Sweden and Denmark and possibly the rest of Europe? We are aggressively recruiting for both Sweden and Denmark, and we're moving into larger offices in both Stockholm and Copenhagen this January to ensure that we have significant space for our bold ambitions in these markets. At listing, back in October last year, we said the Nordics will be the main focus area for the next 12-18 months to establish a true Nordic presence. We are already looking at several European countries for a further European expansion. Europe will be an important market to reach our targets towards the back end of the five-year business plan. Next question. With respect to your organic ARR growth outlook for the coming years, how do you expect growth in the recent acquired companies as compared to their growth for the past year? Let me say this, the acquired companies, they all have fantastic products and competence, and skilled employees. We are confident that bringing them into the House of Control family and deploying our sales machine on their behalf will help realize their full potential faster and accelerate growth moving forward. Now, 18 months ago, we had NOK 100 million in ARR. At 12 months ago, we had NOK 138 million. Today, we're announcing that we have passed NOK 200 million in ARR. As I said earlier, we project that the control segment will account for roughly 55% of total ARR by the end of 2025. This obviously implies that we are expecting strong growth in the new segments. Next question, can you comment on the company's focus areas for development of new products in the near future? Let me say, the product development team are working diligently towards all our three strategic focus areas, which are contract capture, subscription management, and dashboard and analytics. Should we expect an 82% increase in new sales in Q4 as well? When you're looking at the increase, we're saying that the year-to-date increase is 82%. The year-on-year increase for the third quarter isolated, it's somewhat lower. What we're seeing in the third quarter is obviously our sales teams are on summer holiday for the month of July, and then you're coming into August, back into the offices. We obviously have a lot of meetings booked for August already from before the summer. In some cases, we see that we get some cancellations on those since they were booked 4-6 weeks ago. Typically, we reach full speed around mid-August and then carry that momentum into September. In that sense, we're having a lower new sales in the third quarter than in the second quarter, for example. What we are also clearly stating is that the pipe and the prospecting pipeline and the sales activities are strong, and we expect strong new sales in the fourth quarter. This one is actually. Let's see. For the groups reporting in accordance with IFRS, do you use your own solution for IFRS 16 in Complete Control to recognition of lease liabilities and right-to-use assets? And if so, how did you experience the use of the IFRS 16 module? Well, I'm obviously biased here, but the IFRS solution has been a great tool, and significantly eased our transition and reporting. I just have to say, if you're reporting in accordance with IFRS or considering to transition to IFRS, I would strongly recommend that you try our solution. It's truly amazing. That's the last question, at least for now. Yeah, I think that's the question we have. I'd like to thank you very much again for your interest in our company and attending the presentation. Looking forward to seeing you next time. Thank you.
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