Welcome back to ABG Investor Days. Next up, we have the pleasure of welcoming Sten and Knut from Xplora Technologies. And without further ado, I will leave the floor to you guys and come back for a Q&A at the end of the session. Thank you so much. I have to say, this is a new record for us here in Sweden. We have been here a couple of years. Last year, it was two persons in the room. One was a friend, and the other one entered the wrong room. So this is a fantastic start for us. We are super excited. It's far out in the day, so we'll try to make it as exciting as possible. As you said, my name is Sten, and I have with me Knut, our CFO. We will divide the session into three. First, I will give you a very quick overview, four or five slides, just who we are, what is Xplora, what we do currently. Then Knut will take you through some of the latest financial updates. And then I will have the third session where I will take you through some of our ambitions going forward, including Doro and the latest acquisition or proposal in that regard. So three sessions. First, let me try very quickly to give you an update on who is Xplora, what do we do currently. And currently, we are the largest player in our field, smartwatches for kids in Europe and the U.S. combined. We have sold roughly 1.5 million watches. We have NOK 650 million plus of revenue. We operate in nine global markets, all of the markets where we have our own SIM and mobile setup. I will come back to that. But what's very important to just keep in mind, even though we are recognized for our smartwatches for kids, our primary driver of our business case is to install our high-margin SIM cards with recurring revenue. Currently, we are listed at Euronext in Oslo. We are operating in these nine global markets in the Nordic, in the U.K., France, Germany, Spain, and in the U.S. What exactly do we do currently? We have a smartwatch for kids that is a phone, so you can use it to make phone calls. You can send messages. You can see a location, SOS. You have a safe zone. And we also encourage kids to be more active. I have four kids myself, and I know for a fact we need to get them more moving. That's a very important part of the proposition as well. And we position this as your child's first mobile phone. Our primary target group is kids four to 10 or 11 years old. That's our current proposition. And when it comes to our intellectual property, our IP we have built on our journey, it is four different things. One, from the get-go when we started the company in 2016, we developed our IoT platform, meaning that we can have data, personal sensitive data on our platform, on the parental app. And in theory, we from the get-go also said we can connect a lot of different products, not just kids' smartwatches, but eventually also other products, which I will come back to. Of course, we have also built 10 generations of different smartwatches for kids. Some years ago, we also had quite a significant investment, high CapEx, where we invested in nine global MVNOs, meaning that when we are selling our smartwatches, we are pre-installing our own SIM card. When the customer is starting our smartwatches, they can connect it and start it with our own SIM card. So we own that customer relationship, and we have recurring revenue from that service. And our latest development is from something called a premium service, meaning that we can have an even higher price point per month to offer value-added services with very high margin on top of that as well. So four different layers of intellectual property. And with that, we have also done three different revenue streams. So this is the way we monetize our product. We are selling our smartwatches roughly from a price point of EUR 149. And normally, we are targeting to have north of 30% margin on our hardware. Like I mentioned, we pre-install that with our SIM cards. Normally, a SIM card starts from roughly EUR 10 per month, and we are targeting to have north of 80% margin on our recurring service revenue, and our third way of monetizing comes from when a telco is selling our product. Of course, they would like to install their own SIM card, but then sometimes we are able to get a revenue share back from the telco as well. Our monetizing model stems from three revenue streams: the hardware, our SIM, and B2B service revenue streams. With that, just now you have the quick overview on Xplora for now, and then Knut will take you through some of the latest financial updates. Thank you, Sten. Good afternoon. I'm going to present to you some of the key figures. On this slide, you can see the quarterly revenues in Norwegian kroner per quarter. And as you can see, we have a very, very strong development quarter by quarter and year- over- year. In addition, this generates quite a good EBITDA and also a good cash flow. So by the end of Q3 quarter, we had NOK 177 million in the bank, so we are a solid company. When you go into the details, I'm just going to go through a few of the key numbers here. So the quarterly revenues ended on NOK 257 million in Q3. That was absolutely a record for Xplora. And we had then 35% year-over-year growth, very, very strong. This generated then an EBITDA of NOK 30 million, and we have a trailing 12-month EBITDA of NOK 60 million. So NOK 30 million in one quarter, we are quite proud to say that we have achieved that. You can also see that end of 2023, we had NOK 34 million in EBITDA, and that was a big turnaround year for us because in the year before, we had a negative EBITDA. So we have a very positive transaction in all our numbers. When you also see on the cash flow, we have a quite steady positive cash flow, and our CapEx is on a quite low level compared to a lot of other companies. In Q3, we had NOK 7 million in CapEx, and that's mainly capitalization of engineering time and investments. And we had year-to-date a CapEx in 2024 of NOK 15 million. So we consider that as a normal level. When you look at what Sten said, we have two areas of revenue. One is the devices, and the other one is the services. So on the devices, we reached NOK 182 million in the quarter. The devices have, as Sten said, we have more than 30% margin on the devices. And we have then a pretty steady gross profit. And in the quarter, we had NOK 63 million in gross profit from the device sales. The chart here, the pie chart, shows where we are having the device revenue from. And the majority is from the Nordic region: Norway, Sweden, Denmark, and Finland. And we have also quite a big portion of our revenue from the devices also from Germany. So Germany is a very important market for us. When it comes to the other part of our revenue that we are very focused on, because the devices are devices, but the service revenue that consists of connectivity and the rev share from our telco partners is then reaching NOK 75 million in Q3. What's nice about this revenue is that we have more than 80% steady gross margin on our service business. So even with a much lower revenue number, in Q3, we had a gross profit that was on the same size, both from devices and from the services, of NOK 63 million in both, call it revenue streams. What you can also see here is the split on the subscriptions where we generate, where we have the service revenue. And as you can see here, Norway is the largest market where we get the most subscription. Then it's Sweden, then it's Germany, U.S., and you can see the rest of the countries where we have set up our MVNO. So this is the critical piece of what I wanted to present. Thank you, Knut. To spend a few minutes just to look ahead, as you just have seen, today we have roughly 300,000 subscriptions, high margin, north of 80%, and normally they are on a 12-month or 24-month contract. In our capital market day back in June, we told our investor, our market, that our long-term goal, four to five years ahead, our ambition is to reach 1 million subscription. Then we'll become major in a telco size and particularly major in our family IoT category. We also then said, today we have successfully made 300 plus thousand subscriptions for kids. We have a profitable business, and now we will scale into two new verticals, youth and senior, and I will now take you through a little bit behind the strategies for youth and senior and how we are planning to execute that. To start with the youth market, when we first said this, a lot of investors in particular were wondering, are we going to build even more hardware? No, definitely not. So what we recently announced was a strategic partnership with the largest manufacturer of smartwatches in Europe, HMD. So during a strategic partnership, they will provide us with the best possible smartwatches for youth in the market, and we will more than double our joint distribution. I will take you through the proposition in a bit. And then we also recently announced a merger and acquisition strategy to acquire 100% of the shares of Doro. Currently, we announced also that we have had more than 90%, our minimum request, and are currently waiting for the final approval from ESP, as you might already have seen. So that's the two high-level strategies to address youth and senior. To give a little bit more explanation about the youth market, why do we see this as a huge opportunity? By youth, we mean the age 10, when people or kids are stopping to use our smartwatches until you reach roughly 15 years of age. We think this market is very important for several reasons. One, if you follow the news, you see huge debate related to actually, should we forbid kids to use social media, smartphones, and so on? Just a couple of weeks ago, the first country out was Australia to actually ban social media from this target group because of the bad influence of consuming screen time and the content from social media and internet. What we do know is that there will be a significant awareness around the problem with kids having smartphones. We'll have political pressure, and also there is an increase of parental awareness on the downside of this. And also, since we are increasing our customer base every single month, we are actually churning 8,000 that are outgrowing the target group of the smartwatches. So that's why we really would like to have a strong proposition to offer also for this age group. And then jointly with HMD, we have told the market, come Mobile World Congress in March 2025, we will announce and present our lineup with products, again, with a parental control from Xplora, with a pre-installed SIM card from Xplora, and a lineup of fantastic products developed by HMD, ready to announce in the market during Mobile World Congress, early March 2025, and shortly thereafter, we'll roll this out into the market. When it then comes to the senior markets, as mentioned, we announced an M&A strategy to acquire Doro, a fantastic company you all know, I assume, from Sweden, that over many years have really become a dominant player in this category. And if you just look at our two companies combined from 2023, you see a revenue north of NOK 1.6 billion and an EBITDA north of NOK 150 million. So two very solid companies with our benefit of growing a significant user base and a subscription base. And moreover, what's really compelling for us as well, their core market is also the same market where we already have an existing MVNO setup to provide our mobile connectivity, our SIM cards. Doro also has a fantastic lineup of products, not just smartwatches, but also complementary products, and we will do our very best if the transaction goes through to really support the innovation in order to keep the same strong position in that market. As we explained during the announcement of the acquisition, Xplora, we will focus on one very, not simple, but one very important thing. We today sell roughly 500,000 smartwatches for kids. We have been able to convert roughly 25% of our sale to activate our SIM card. Doro have done an even better job than us. They sell more than 1.5 million smartphones per year. Our only focus will be to try to pre-install and activate the SIM card within the product from Doro. That's our focus, and that's where we see a huge opportunity in this acquisition model. Everyone wonders about numbers. As we said, just combining the two companies, north of NOK 1.6 billion worth of revenue, NOK 150 million plus of EBITDA. Currently, like I said, we are able to activate roughly 25% of every single sale with our SIM card. We have a chart, a table, just to exemplify the EBITDA effect if we are able to activate our SIM card in the sales volume from Doro. As you can see, 5%, 10%, 15%, or 20% conversion. So let's say we sell 100 smartphones. If we then can activate 10 or 15% or 20% of that volume to activate with our SIM card, you can pick a number, but let's say roughly 15%, it will generate NOK 300 million - NOK 400 million in additional EBITDA in year three. Today, we activate 25%, and here are some numbers just to understand the opportunity of this business model. Currently, we are waiting for the final ESP approval. It's expected to come sometime in February. We are hoping they are working very quickly on this and expect that to go in a good way, but we are waiting to see that final outcome. But hopefully, you have seen some takeaway for the rationale behind the acquisition, some of the rationale behind our youth focus, and how we operate our current business plan within Xplora. So with that, we are welcoming questions. Thank you so much, Sten and Knut, for the presentation. Maybe I want to start with the Doro acquisition. You talked about converting subscribers, but what is your current plan for sort of converting those Doro customers to Xplora subscribers? Do you plan to offer some kind of incentives, or do you plan to pre-install SIMs in the Doro phones? What is the strategy for that conversion? So luckily, we have worked many years to optimize how we do that on our current smartwatches. Also, remember, most of the sales are happening through the same retailer and distributors. We already know them well, and we have trained for years how to do this process. We will do the same thing for Doro as well. To your point, we will pre-install the SIM cards, so they are already in the box. And of course, we can port all the numbers. So if someone already has an existing phone number, they of course can get the same number in our pre-installed SIM card. It's easier to install. We can add more services on that SIM card. And if we have to, we can also give financial incentives in order to convert. You briefly mentioned you have similar distributors as well. Maybe you can talk a bit more about the distribution model and what kind of distributors you work with, and also how do you work with marketing? Are you marketing primarily to the parents, or is it important for you to actually build awareness among the kids? How do you do that? A little bit of both. What we always have seen when it comes to kids, it's always important, of course, to make it compelling for the kids. But of course, primarily, our marketing is geared toward the parent that is buying the product. And again, the value related to Doro is that the buyer very often will be the same person. The same person will buy it for their kids. That potentially also will influence or help to buy the product for their parents. So same distribution, same channels in general, and very often also the same buyer. But our marketing is heavily, so our channel mix is roughly split into, again, the same as Doro, 20%-30% online, same related to retail, and roughly the same also in order to or via the telco channels. So we do a lot of online marketing for our online sales, and we support the retailer and the telco in their marketing initiatives. I think you've tried to grow in the U.S. as well. I think it was a smaller part of your sales currently, but I believe you have an agreement with AT&T. What is the long-term potential, I think, in the U.S.? If you saw the charts, when it comes to kids, U.S. represents 30 million kids in the age four to 10, which is roughly more than our European market combined plus Scandinavia. So of course, the opportunity is huge. We just made a finalized agreement with AT&T, allowing us also then to pre-install SIM cards in the U.S. market, where we can drive the same 80% margin on the service subscription, meaning that from 2025, we are ready to scale our model also in the U.S. market. So you have limited revenue right now from that agreement? Lesser so, yeah. Yeah. All right. And what about the competitive landscape? I mean, both in Europe and maybe it's different in the U.S. I mean, who are the main competitors primarily for the children's space, you would say? High level, it's actually been the same, quite steady over the last three, four years. We see roughly two to three maximum competitors per market. They are all very different. So no competitor do we meet in all our market, but two to three competitors per market. The key difference still is that with one exception in the U.S. market, all our competitors are only hardware-driven, so they have only a hardware product, and every single time we see a hardware player, we'll have everything from 30% to maximum 50-ish% margin, so they have significantly less capital to invest in marketing and distribution than we have. We have the flexibility to subsidize the product because we have our own SIM connectivity, and generally, we just have higher margin. We are able to outcompete a lot of times due to simply because of our business model and the financial strength in our model, and we become more compelling for the retailer for that reason. Yeah, and in terms of distribution and partnerships with the telcos, maybe you have it already, but is there opportunities for you to be included in family bundles and stuff like that? Is that a driver for you or a potential, or how do you view that combined in the subscription? Yeah, I would say the answer is yes. Since we do not have empirical data on it, I wouldn't put any promise out there. But of course, when we have both kid, youth, and senior, of course, we have the opportunity to seek the opportunity with the bundle model, but we have no data in that regard for now. Bundling with, if you work with AT&T, for example, maybe they have a bundle for families. Can you possibly include it in? Is that part of the agreement that you will include? Currently, it's not. Okay, but maybe in the future? In the future, it might be. And then you talked a bit about how you want to grow the subscriptions. I think you mentioned one million subscribers was the target for you. I mean, how would that translate into margins and stuff like that, do you think, over time? Do you have any long-term financial targets? I can answer that. So today, we have 80%-83% gross margin on the kids' watch. There is, of course, a little bit of difference depending on what market you are in, and there will also be a little bit of difference in if you are in the youth or in the senior market. But basically, our target is to keep that KPI, more than 80% gross margin. And then as our company develops, we will see how that develops. Which makes it quite simple to model. We haven't guided on those numbers, but to Knut's point, if you model 1 million subscription versus 300 plus we have today, on the kids' market, we have a roughly 30-month lifetime span. On the senior market, we expect that to be north of 50 months - 60 months. So there will be even a longer lifetime or higher lifetime value. But based on the number, it's quite easy to model how 1 million subscription will turn out in profitability. All right. Thank you both, Sten and Knut. Knut, that's all we had time for, I'm afraid. But thank you for coming, and thank you to the audience for tuning in. Thank you.