Good morning, and welcome to our second quarter presentation for Sikri. My name is Nicolay Moulin, I am the CEO of Sikri. As usual, I have brought my financial alibi to present the quarterly report, Camilla Aardal, CFO in Sikri. Please have a look at our disclaimer Good morning. If you have any questions for us during the presentation, we'll be happy to answer these after we've concluded the presentation part. Please send your questions to the email address displayed on the screen, per.lomsdalen@Sikrigroup.com. Now we will present some business updates for Sikri Group, but before that, I want to give you a short introduction to the Sikri Group organization. We are now an organization with over 250 employees in the Nordics, where the majority is working in the software area. The company has over 7,800 professional customers and close to 1 million end users. The Ambita segment enriched Sikri Group with, among others, the services Ambita Infoland, Ambita E-tinglysning, iVerdi, Boligmappa, and Byggesøknaden. In addition to 4CastGroup, where the most known company is Prognosesenteret AS and Prognoscentret AB in Sweden. We have a clear ambition to deliver above-market growth, both organically and through M&A. Majority owners have extensive buy and build M&A experience and seek to leverage that to build Sikri Group as the Nordic powerhouse for public administration software, PropTech, and data economy. Data is, as you all know, an increasingly important building block in creating new services for both private and public sectors and us as citizens and consumers. As communicated during our last quarterly presentation, Menon Economics stated that data economy represents NOK 150 billion and employs several thousand people, numbers that are expected to double in the coming years. This represents a fantastic opportunity for us, as data is the center of everything we do. The first few weeks of collaboration with our new colleagues in Ambita have confirmed our vision of being the key driver of improving data flow between public entities, private companies, and us as citizens and consumers. We in Sikri are on our way to building the leading ecosystem for public administration, PropTech, data, and analytics within the Nordics. Based on existing market position, we will develop new services, creating sustainable values. We are reaching our goals for the quarter in terms of organic growth at 18.6 in total, 16% in the Sikri segment and 19.6 in the Ambita segment. Other highlights is of course finalizing the acquisition of Ambita on May 3rd and really starting to get to know and working with new colleagues was the most exciting event this past quarter. We are also pleased to see a large interest in the participation in raising NOK 460 million in new capital. We also see an increase in the numbers of win on public tenders. We see a small decline in our win rate from first quarter where the bids were fewer. All in all, it has been a successful quarter in terms of new sales. A key part of our M&A strategy is to acquire companies that can augment our development capacity in areas of strategic importance to our existing and potential new customers. It is exciting that we are already launching new products stemming from co-development with acquired companies such as the Samsvar platform, a cooperation between Sikri and Sureway. It makes us proud to see how the people in our organization are embracing our strategy for both organic growth and growth through M&A. Looking at all the new logos in Sikri, we feel strongly that we now are proving that we're putting actions behind our words in becoming a Nordic powerhouse. We communicated clear financial aspirations in 2020, we're well on our way to reaching our 2025 goal of NOK 1 billion in revenue. That doesn't mean, however, that we'll be hitting the brakes. We still have the same goal of a 15%-25% organic growth in the Sikri segment. For the new Ambita segment, we need to come back with updated financial aspirations once we have completed the necessary strategic reviews. Although we were able to acquire a large, well-performing company, we will still continue to pursue further growth opportunities through M&A. For the Sikri segment, the year started a bit slow in the marketplace. In second quarter, a lot of public bids were announced, and we have a record high volume of wins in total contracts value in the first half year. For the Ambita segment, there has been good momentum and strong customer commitment from the real estate broker during first half of 2021. Revenue from registration and interaction services continues its growth due to real estate offices using more digital tools. Byggesøknaden has, from the start in 2020, now during H1, got 800 new customers and increased revenue during the period. We announced a win rate of 70% on the election contract and ended up with 72% on the total of 160 customers. We are an organization in constant development and growth, and we're happy to see the enthusiasm and dedication our colleagues show towards value creation for our customers. Our continued success depends on attracting the best people, and to do that, we have to be an attractive employer. We performed a survey among all our employees, and the feedback was clear. Our colleagues want a more flexible work situation going forward. We're implementing a three to two model for the time being because we strongly believe that the combination of three days at the office, meeting colleagues and developing creativity, and two days working from home, doing more concentration work, could be the right way to continue building a strong company culture while meeting the expectations from employees in balancing their work and free time in a better way. Attracting the best people means that we need to be as attractive for women and men, and we hope that our 50/50 balance of gender in the management team may inspire more women to seek opportunities in the IT industry. We have over 30% women in our workforce, a percentage we strive to increase. We are fully focused on business as usual, and our main priorities are our customers and creating new applications and services. At the same time, we need to plan for a smooth and successful integration of Ambita and have mobilized and integration planning project. We are in the evaluation phase now, seeking to find the best practice from both organizations. As CEO of Ambita, I was invited to participate in an exciting event last week in Arendal, discussing a topic that excites me a lot, data-driven economy, and in this case, especially towards the real estate market. Hearing how we as Sikri can contribute to make everyday life better for public, private, and citizens. Another excellent example of data driving and creating values is a new cloud-based solution we developed for Redningsselskapet. The solution provides value-added information and insight into drowning statistics, created with the use of AI. The new generic platform created by Sikri collects, categorize, and analyzes data, providing Redningsselskapet with increased knowledge and insight into death and accidents by drowning. This knowledge will be the key in prevention of drowning accident going forward, with the ultimate goal of saving lives. The same AI platform is implemented in our case management system, also creating more data-driven decisions and automation in public sector. Now over to some financial updates. As you will see in our Q2 report, we are for now reporting according to two segments, Sikri and Ambita. In the upcoming period, we will be working on our integration plan, and through the integration process, we may redefine our business areas, which potentially may impact our reporting segments in the future. We delivered strong organic growth in Q2, improved from the 1st quarter. Pro forma revenue was NOK 208 million in Q2, up from NOK 176 in Q2 last year, representing growth of 18.6%. Both segments experienced growth above Q1 levels. Sikri revenue grew by 16%, while Ambita revenue grew by 19.6%. Ambita experienced a significant dip in Infoland revenue in April and May 2020 due to the hit of COVID, while the real estate market this year has been very active in Q2. For Sikri, it's more of a steady growth based on the success we've had in wins within public sector and implementation of eByggesak and other recurring revenues. Consulting revenue in Sikri is significantly improved from last year. H1 growth ended at 14%. In terms of pro forma adjusted EBITDA, we delivered operational profitability of NOK 47.3 in Q2, up from NOK 41.4 in Q2 2020. EBITDA margin for the quarter was stable from 2020, while H1 profitability improved by three percentage points. The main driver of EBITDA improvement is volume. Increased revenue in both segments as mentioned. Costs are relatively stable year-over-year, although Sikri has grown and there's some increase in personnel cost. The improvement in the Ambita segment was higher in Q1 due to cost-based adjustments made early Q2 2020. Costs were higher in Q1 2020 than the current run rates. A high level of group revenue is recurring or recurring-like in nature, totaling approximately 80% of total revenue. Recurring and recurring-like revenue is based on subscriptions, firm agreements, committed purchases, and revenue from data purchases that is highly repetitive, based on historical data. It is important to understand that while Sikri's recurring revenue is relatively fixed and stable month-over-month, a large share of Ambita revenue is dependent on movements in the real estate market, and therefore affected by economic and seasonal variations. Comparing the full pro forma results for H1 against last year, we have delivered organic growth, as mentioned, of 14%. Personnel costs have increased slightly due to the growth in number of FTEs and the impact of share-based payments according to IFRS. While other OpEx was only impacted by other income and expenses or one-offs, there has been no real operational increase in other OpEx. Capitalization of development costs was NOK 29 million in H1, NOK 19 million in Ambita and NOK 10 million in Sikri, representing 7% of total revenue. Adjusted EBITDA in pro forma terms increased by close to NOK 25 million year-over-year, and margins have improved due to the improvement in cost base as mentioned. Non-current assets are largely intangible assets, where goodwill comprises approximately 50%. The rest is trademarks, customer-based, and software and technology. Total equity has increased by NOK 500 million, mainly due to the new equity issued in May, where we raised NOK 460 million by issuing 4 million shares in the company. Total liabilities have increased with the new debt raised for the acquisition.
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