What time is it? It's 10:00. We'll get started. First of all, let me ask, is there anyone in the audience who prefers that this presentation be made in English? Yes, please, in English. Okay. We'll go for English. That's not a problem. Great. I'll get started. First of all, a warm welcome to our third quarter webinar report, and to begin with, I would like to thank all my wonderful colleagues for a great third quarter, and we'll try to keep it up for the quarter. I seem to be having a technical problem here. I think it was one of the guests, Niklas, that wasn't on mute. There's something wrong with my presentation. I can't. My computer is. Can you still hear me? Yep. Yes. Okay, great. I will try to get the PowerPoint up again. All right. Let's try this again. Welcome. Like, yeah, most of you probably know, I'm the CEO and Founder of Awardit, which I've been running for 20 years plus now. Just short recap regarding Awardit. We're the largest company and platform for loyalty, incentive, and gift card programs in the Nordics. Looking ahead, our rolling 12 months pro forma revenue without any additional acquisitions and without any organic growth should be around SEK 550 million-SEK 600 million, and that's, you know, divided by 10, you have it in euros. Including Prämie Direkt and including organic growth at the same pace we have now, we should. It's definitely reasonable to assume that we'll reach SEK 1 billion in turnover during 2022. What does Awardit do? We're a one-stop shop for loyalty programs and gift card programs. We provide a software as a service toolbox that covers all parts of the value chain, and we have more than 200 programs running in the Nordics, and we reach more than 15 million consumers. I think it's important to note that Awardit is a platform network-based business. We not only provide the tech, we also provide the networks, the platforms, and it's an extremely effective way to reach consumers. We're seeing strong organic growth and rising profitability. We're divided up into two different main business areas, loyalty and gift cards. Last time I had the presentation, we had three different business areas. We had partnerships, but partnerships have been merged into loyalty B2C. Our long-term ambition, and when I'm saying long-term, I'm thinking three to five years, is to become one of the absolute leaders in this sector on the European market, and we aim to do so by continuing our aggressive acquisition strategy. To date, we have completed nine acquisitions since we took the company public in 2017, almost four years ago, and we're working on our 10th acquisition right now. Going ahead, looking at our third quarter, the way I see it, we had a very good third quarter. Our growth was 110% from SEK 62 million -SEK 130 million, which is looking at the organic side of that, it's 24% organic, and that's excluding MBXP and The Inspiration Company. That is our latest acquisitions that we've closed this year. It should also be noted, which is not mentioned in the actual report, is that in the third quarter 2020, we had revenue of SEK 10 million-SEK 15 million. That's non-recurring from our perspective. If you adjust for that, our organic growth this to the third quarter this year would have been around 60%. Looking at EBITDA, we saw an increase of 96% from SEK 7.7 million - SEK 15.1 million. 74% of that is organic. We've seen improving gross margins. Mainly thanks to the acquisition of Tix. We're working hard on integrating Tix right now. It's a business that's very similar to Awardit, and it's interesting to see that their OpEx is twice as high as Awardit. We see a lot of the cost synergies, and we've managed to taken care of some of those already. Almost to date, I think we've saved SEK 2 million per annum just on office space. We're working hard on that, and we're quicker than we've been in other acquisitions. If you're wondering about how's it going with the Prämie, the Prämie acquisition, it's going well. We have concluded the due diligence phase. We haven't found any skeletons in the closets, and we expect that we will close that deal before the end of the year, as soon as possible. We're in the stage now that we're negotiating the final share purchase agreement. Prämie will be adding around another SEK 200 million rolling 12 months ahead and with a profitability around 10% of that on EBITDA level. Zupergift, which is our fantastic gift card program launched mid-2020, is developing very well. Our sales up until the end of October were in total around SEK 100 million. We started seeing breakage during the third quarter, but still the volumes last year's third quarter were quite low. We only saw SEK 0.4 million in the third quarter. If you're applying the same breakage levels to the fourth quarter and the volumes we saw fourth quarter last year to the fourth quarter this year, we expect to see around SEK 2.6 million added in profit from breakage in fourth quarter this year. Like I said, we're performing well, we're growing organically, we're growing through acquisitions, and we expect that to be continued. We had a really great start on the fourth quarter with 113% organic growth. It's, you know, you should know that looking back over the last years, it's always been that the most important quarter from a business perspective for all our businesses is the fourth quarter. I did a calculation, and I saw that last two years, we've always had, on an average 50% higher revenue in the fourth quarter than in the third quarter. That's, you know, if you're investing in Awardit, it's good to know. MBXP, which is the acquisition we did in April, the Danish group leading when it comes to third-party distribution of gift cards in physical stores, etc. They're still affected by COVID. Denmark started opening up in September. They haven't been contributing to our profit really so far, but we expect that to change. It's a turnaround going on. By mid-October, they were back on pre-COVID levels. It's an exciting quarter for us when it comes to MBXP. When it comes to Tix, we closed that acquisition on the first of July, so that's in our books since then. They haven't contributed on an EBITDA level to us during that period. That is due to the third quarter historically being the slowest for them, and also due to the fact that they've been running some point redemption campaigns in the second quarter, which boosted their revenue and profitability in the second quarter. If you were looking at the budget for the full year, they're actually performing 2%-3% higher than their budget. During the fourth quarter, we expect that they will contribute between SEK 4 million and SEK 6 million to the group on an EBITDA level. Right. Looking at our gross margin, it's on the rise mainly due to the acquisition of Tix in July and MBXP. As you can see, we also expect the EBITDA rise, EBITDA margin to keep rising over time. I believe I probably didn't mention it in the beginning, but an adjusted EBITDA level, EBITDA margin, we saw a rise from, I think, I believe, around 12%-17% during the third quarter. This is developing well, and we expect it to slowly keep rising over time. Like I said, Zupergift breakage is stabilizing, and we probably by the second quarter next year, we'll be quite sure what the future breakage will be looking like. On the other hand, we won't be communicating the exact figure when it comes to breakage. Although, I mean, you'll be seeing, yeah, we'll be mentioning how much breakage actually materializes in our profit and loss sheet. All right. That's it for the presentation of the quarter. I'll just go through some other stuff. As you know, we're an acquisition-driven company. Our aim is to keep growing organically and to grow quicker than the market organically and at the same time, doing acquisitions. The market is extremely fragmented. It's perfect for our acquisition strategy. Prämie Direkt, it's a very exciting project since it's our first acquisition in Germany. What we've been doing there, in effect, is creating a bridgehead from which we'll keep building to find new acquisitions that are suitable for Prämie down there. We'll be running that sort of like a separate division to keep building from. Why do our customers turn to us? Well, obviously, we work on the revenue side of our customers' businesses. They want to achieve a greater share of their customers' wallet. They want to reduce price and discount focus. They want to increase customer lifetime value, decrease churn, and obviously also communicate more effectively and get more out of their marketing budgets. You can always get more out of your marketing budgets by running a loyalty program compared to or a gift card program compared to traditional mass marketing. Short note on our business model, if you're not already aware of that. When it comes to loyalty, we charge a setup fee for setting up the platform and running it. We charge a monthly fee for access to the platform on a monthly basis. It's a software as a service. Then we do business within the loyalty programs. We provide partnerships. We provide redemption opportunities. We do business. We call this the loyalty marketplace. So when you redeem your points or you buy a product in a closed deal shop or similar, we'll be earning a margin on that. When it comes to gift cards, we have a similar model. We charge a setup fee for setting up the platform. We charge a monthly fee for access to the platform over the internet. We also charge loading fees that can either be a fixed amount per issued digital or physical gift card, or it is a percentage of the value being loaded on the top of the card. When it comes to reselling and distributing gift card, which is a large part of our business also, we charge commissions from that. When we run our own private label gift card concepts like Zupergift, we also earn breakage from values not being redeemed before the card is expired. That's different from card to card, but Zupergift, it's a one-year expiry date. When it comes to partnerships means that we set up a network of various businesses. We have hundreds of partners today. The members in Loyalty Program X can earn points not only from the program owner itself but also from a network of external businesses that are either online or offline. We track all those transactions through our technical platforms, and we reward them with points or cashback. For each such transaction, we earn a commission, and that varies, you know, depending on what type of business. It can be anything from, you know, 2%-15%. That commission is used to finance the points or the cashback, but we obviously have a margin there. The markets are globally growing, and we expect to ride on that trend and perform better than the markets. Some more information on Prämie Direkt. It's one of the leading loyalty businesses in Germany. It's a business that's existed for more than 50 years. They're focused, they're specialized on the redemption side, the fulfillment side, the reward side of the programs, so they do not run complete programs. But we'll be able to facilitate that for them since we have the complete platforms. But today, they're specialized on the redemption side. Last year, they had a turnover of EUR 18.7 million, EBITA of approximately EUR 1.2 million. This year's expected EBITA around EUR 2.0 million, and the turnover around EUR 20 million. It's debt-free, 35 employees. The price we're paying according to the term sheet is EUR 70.5 million. We'll be paying EUR 14 million in cash. We'll finance that through the cash we have at hand and also probably a bank loan, 50%. And EUR 3.5 million in Awardit shares. Obviously, we adjust for you know the cash at hand in the business. Either they distribute that before the transaction, or we pay extra for the cash that's left in the company. That being said, we are extremely well-positioned for continued growth and success. We're working, like I said before, right now with the integration of Tix. We've seen strong organic growth in October. We expect strong organic growth for the whole of the fourth quarter. Like I said, normally, we see a 50% higher turnover in Q4 versus Q3. We've initiated a large project internally to get more cross-selling within the group. There's a lot of revenue to be gained from that. We're actively now establishing a partnership network based on open banking, and we have that live in a couple of loyalty cases, and it's working well. We believe that is a future technology for tracking transactions in large networks without having to integrate in ERP systems, et cetera. We've seen a record amount of new customers during the last half year, especially in the gift card program, which, it feels, really great. We expect to keep going with the acquisition strategy. We have a lot of cases in the pipeline. You know, I can't say when we will be closing them. As you know, we've done, and now we're working on the 10th acquisition over a four year period, of which three of those 10 acquisitions are conducted this year. Two are closed. We're working on one. Our finance department is telling me that it's okay to do one acquisition per quarter, but I believe we can do more so in the future. Obviously, the goal on a three-five year period looking ahead is to become one of the absolute leaders on the European market, and I believe that is viable if we can keep rolling ahead with our acquisition strategy. It's a very fragmented market. You know, I think if you have questions, you should post them in the chat, and we'll go through them. If there's any question that I can't answer, then I will try to answer it on Twitter if that's okay. That's the end of my presentation. Great. We have a couple of questions, Niklas, in the chat. Yes. The first one is from. Can you read them? Oh, yeah. Yes. Okay. Let's see. Are you expecting Zupergift to grow year-on-year 2022 despite the tax-related sales boost in 2021? I would say yes, we expect that. Actually, to date, we've only been selling Zupergift in business-to-business channels, so we're just scratching the surface when it comes to business-to-consumer. We've actually employed a person to get started with the B2C strategy and marketing of Zupergift. Yeah, we're obviously aiming to keep that product growing. Next question. Can you say anything about how much of the expected SEK 2.6 million breakage that materialized in October? No, I can't say anything about that. We haven't done that calculation. Would also be nice if you went through what drove the growth in every month during Q3, and October at... I don't understand that question. Obviously, growth is driven by more customers and also primarily by our B2B, B2C loyalty segment getting back on track after COVID. That is definitely a factor, and we expect that to keep going. There's been a significant increase in other external costs and depreciation during the year compared to 2020. Depreciation's obviously related to our acquisitions. When we buy a company, the price we pay has to be the sort of overprice that's above the company's own capital has to be allocated to customer relations, to platform, to goodwill. When we allocate it to goodwill, we don't write it off under IFRS rules. When it's allocated to customer relations and platform, et cetera, then I believe the write-off period is five-10 years that we're applying. The relevant profit line to look at when it comes to Awardit is EBITDA from my perspective. How much of it is a direct impact of the acquisition? Almost all is an acquisition impact. What should we expect about this in the upcoming quarters? Obviously, we aim to keep buying more businesses to keep up the acquisition pace. You should expect that, I mean, the depreciations will rise over time. The more acquisitions we do, the more depreciations we'll have. Can you say anything about the organic growth for Tix and MBXP? Well, MBXP first of all, it's a turnaround case. We've mentioned that before, and they've been heavily hit by COVID, and they're actually in the midst of their turnaround now. Like I said before, mid-October, they were back on pre-COVID levels. When it comes to Tix, also, like I said, they have a budget. They're on that budget, a bit above. We've communicated those figures before in prior presentations and reports. I don't have them at hand right now, but we expect, like I said, SEK 4 million-SEK 6 million EBITDA to be added from Tix in the fourth quarter. Zupergift I've already mentioned. It's looking good. Next question from Simon. Regarding your trading update, which was very strong, can you give us an indication of the significance of October in relation to November and December in terms of absolute levels of sales? I believe in October, to give you an idea, we had sales of SEK 15 million in October last year, and this year it was SEK 32 million. When it comes to November and December, I don't have those figures top of mind. You said that you had a non-recurring in Q3 2020. Did you have a similar boost in Q4 last year? No, I don't think so, but we will have to double-check. MBXP margin decreased quarter-on-quarter from Q2. How should we think of profitability in both MBXP and Q2 and Q4 strongest quarter? MBXP, like I said, they're turning around. They're back on pre-COVID levels in the middle of October. Yeah, we expect it to look a lot better for the fourth quarter, but I can't give you any figures there. Can you elaborate a bit more on how the organic growth year-on-year can be so high in October? Well, I mean, it's obviously a question of that some of our COVID-affected businesses are back on track. You know, October last year was a tough COVID quarter. If you then add also Zupergift, et cetera, on top of that, it's you know, it's looking very well. Obviously 113% organically, it's an extreme number. Also, take into account that historically, the fourth quarter has always been around 50% higher than the third quarter on an average. You wrote in the report that you realized SEK 2 million in synergies. Could you explain what those SEK 2 million are related to and what you expect in Q4 maybe? Well, SEK 2 million, first of all, in realized synergies, it's regarding Tix, and that's just, you know, terminating office space, and so on. Actually, those contracts have been terminated now, so it's SEK 2 million per annum. Logically, we should see like SEK half a million in the fourth quarter from that. We expect to realize more synergies on a cost basis there. I should also mention that we expect to be able to migrate all customers within Tix to the Awardit platform, so we won't be needing to run their platform. But I'm seeing that from like a six-month perspective. It's a big project that we're working on, but that's also bound to save a lot of money and administration in the medium term. Right. Could you break down a bit on the EBITDA margin? It was slightly lower than last year. Where do you see this coming from? Well, first of all, I don't think I mentioned it in the beginning, but adjusted EBITDA margin rose from around 12% - 17% organically. So that's a good thing. I don't know if that answers the question. Obviously, from a general perspective, business-to-business loyalty has a lot higher gross margin and profit margins than the business-to-consumer side. Business-to-business is growing very well, but also business-to-consumer is back on track and growing even faster. The organic growth for July was 50%. The outcome third quarter was 24%. Outcome October 113%. I guess the question is what we expect for the fourth quarter, but I can't really say that. I mean, October is fantastic. We have 113%, and like I said, the adjusted growth in the third quarter versus third quarter last year was actually around 60%, not 24%. I can't give you a target on this really. Obviously we expect it to be a better than normal year, so more than 50%, but perhaps not 113% over the whole quarter. We'll see. We'll definitely be working hard to achieve the best. Could you add some flavor on how intensive your screening and acquisition efforts are, and especially comment on how they differ depending on different geographic areas? First of all, we don't retain any advisors for finding acquisition prospects. We find them by ourselves, or we're contacted by sellers' advisors to look at different proposals. We obviously have a pipeline of several interesting acquisition opportunities. When looking at geographic regions, like we've started doing this, the Prämie Direkt acquisition, obviously we're already speaking with the management there and looking at other opportunities since they have better networks down there. We sort of work with the local management team in Prämie Direkt to find new targets. Obviously, we also work parallel by ourselves to identify potential acquisitions. There's a lot of potential in our pipeline. I'm seeing new business models in B2C gift cards, for instance, Live it has a store in Stockholm. Are you considering physical store or gift card boxes that can be sold in collaboration with retail partners, Scandic, et cetera? Well, actually, we are in that business already. We own, through MBXP, a concept, a private label concept called Den bedste gave, The Best Gift, Danish. It's more or less an identical business to Live it, but on a Danish market. We've also communicated earlier this fall that we're planning to launch our own private label for experience-based gift vouchers. On the other hand, I'm not very fond of these on the physical packaging itself, although, I mean, it has, you know, it has potential in the physical retail chains and et cetera, and we do it, but we prefer 100% digital products. Also obviously, like Live it is a customer of MBXP, which we own. They need to distribute their gift cards through our channels. Yeah, we're collaborating with companies like that. It's important to note like MBXP, through MBXP, we are the largest third-party distributor of gift cards in physical stores in the Nordics. I believe we control 80%-90% of that market today, and we have 12,000 different stores. If you go to Coop stores and you see the gift cards there, those are provided on top of our platform. If you go to Circle K, gift cards there is provided on our platform. 7-Eleven, Reitan, you name them, they're all our channels. Could you provide some guidance on your long-term margin targets? Could you also elaborate a bit on operating leverage? I.e., how well does your operation scale? First of all, I've mentioned before that we have a very scalable business, and I believe that we could double Awardit's revenue without adding any or, you know, just a minor amount of additional employees. This business is extremely scalable. When it comes to long-term margin targets, we're not communicating those. But like I said earlier, we're seeing the both gross margin and the EBITA margin rising over time. That will continue, or at least we're working for that. Obviously, it can be a little bit different from quarter to quarter, but long-term rise can be expected. How much of the external costs in the quarter were one-offs? I don't have the answer to that question on top of mind, unfortunately. Obviously, we have transactional costs and so on when we do acquisitions, but I don't have the figure. That being said, I think I've answered all the questions, and if you have any further questions, you can perhaps post them on Twitter. Wait, here's another question. Are integration synergy products driven by the Awardit management teams or by the acquired companies themselves? Obviously, we're in driver's seats. We take the initiatives and drive these products together with local management. All right. Thank you for listening to me, to us, and have a nice weekend. Bye-bye.