Welcome to this quarterly report presentations for of Byggfakta Group. My name is Stefan Lindqvist, and I will be the one guiding you through the first part of the presentation, and Johnny Engman will guide you through the numbers. Next page, please. We start with a short company overview with Byggfakta at a glance. As you can see, Byggfakta, we are the number one and the leading market player in most of the regions where we are present. As I normally say, this is a very important position to have, as there's extremely high barrier to entry if you would like to compete with us in these markets. That's due to three reasons. First of all, you need the tech platforms that we have. I normally say that's something someone else also could probably develop, and we have also other companies doing similar things in the other part of the world. That's something we could have competition in and around. The second thing that you also need is the unique and proprietary data, and that's something that is more difficult for someone else to compete with us. That's also very costly, and that's the information that you normally have to get from interviews with decision-maker, and that's something you can't really get somewhere else because you can't find the information on the internet. The third thing that you also need is the client base. As you can see, we have more than 47,000 clients, a very huge and diversified customer base, and that takes time to build up that kind of customer base. That also means that we don't really are depending on one or a few bigger clients. We're very spread out the risk of the company or the how we have been able to sell to all these players in the market. Another thing is that we're operating with pretty good margins. Last year, we had the 36% margin, and we're aiming for the 40%. You can see also that we have been growing quite nicely over the years. Next page, please. What is it then that we are doing? I normally say that the core product that we have is something we call product information, and that's a service where we are collecting information about all planned and ongoing building projects, trying to find the information about the product as early as possible by interviewing the decision-makers or the property owners. Then we follow the projects during the whole project's lifetime, adding on all the other players who will be involved in the project during the process. Due to the fact that we have this service, we can have then been able to add a number of other services like the specification information, the product information, and the e-Tendering. Next page, please. If we then go a little bit deeper into what these different products are doing, and we start with the product information, that's the biggest product that we have. As I said, this is an information service that we are collecting information about all planned and ongoing building projects and trying to add all the players into the project. What we are doing is that we are trying to find them as early as possible, and then you normally ask yourself, how do you do that? There are a number of sources that we're using to collect all this data. Of course, we're crawling the internet for finding the information as much as we are capable. One example of that could be that we are crawling the municipality of Gothenburg and find out that they have decided to explore a piece of land for building a school. That's an early-stage information for us, meaning that we are giving the town of Gothenburg a call, asking for who will be the developer. When we have found out who will be the developer, we continue the interview with the developer, adding on the architects, the technical consultants, the contractors and subcontractors and so forth. Another source that we're using is, of course, when we are doing all these calls, we always in the end of all these calls ask, "What else are you doing?" That's actually the most important source for us to find information in the early stage. Then you normally ask yourself, "Why on earth are they then willing to give you this information?" That's mainly two reasons. First of all, it's an excellent opportunity for them to market this project and also to get the latest innovation when it comes to product news and so forth, and also get the best bids. Another thing is that they are normally extremely proud of talking about them. That's the last source that we're using is the search building permits, but that works more like the safety net for us because that secures that we actually cover 100% of all the projects. The problem with the building permits is that it's kind of late information, meaning that most of the decisions are already taken. You probably ask, "Who are then buying this information?" That could be all kind of companies involved in the construction project, all from banks who would like to finance them. You have the architects, technical consultants, and contractors looking for more jobs. You have all the building manufacturers who would like to sell their products to the projects. You have all the other kind of service providers, like companies renting out cranes, cleaning up the construction sites and so forth. As you can see, more than or close to 50% of our revenue comes from this product. The second product that we have is what we call specification, and that's a technical platform that we have developed, mainly used by the architects when they are doing the specifications. Because when you're making the drawings, you also need to specify them in text. This is then a tool integrated with the big CAD systems like Revit and Archicad and so forth. When you're making your drawings, you can also automatically then collect the wording around the drawings. That's what this helps. It helps then also to them to follow the latest norms or rules or regulations, avoiding a lot of the mistakes that occur on the drawings. We know that one third of the mistakes that occur on the construction site could be attributed already to the drawings. It saves a lot of time. That's the reason for that. In this case, it's the architects who pays for this service. The third product area that we have is what we call product information. Here we have a database with all the manufacturer's products, including all the information about the products like the BIM object, the 2D and 3D CAD details. You have installation instructions, demolition instructions. You have all the environmental information that's important today, so you can see what kind of footprint this product have on the project. You have also the unique specification for this product. This is also then integrated to the CAD system, so you can just drop and drag all the information. Then the fourth area that we are working with is what we call e-Tendering. This is a service where we are helping both the property owner and the main contractor in the tender and procurement process, so they can do that in a professional way. All of these products are linked together. Next page, please. This page shows you how it's actually working, because as we have, as I said, the product information which follows the project during the whole lifetime, we have the opportunity to market all the other products to the right person at the right time. Meaning, for example, with the product information, as soon as an architect has been appointed to a project, we send what we call a key mail to the architect saying, "Congratulations, dear architect, that you won this job, this job. Now when you go to search for your products, then you can use Byggfakta's product information database for finding the right product for the project. It's the same with the certification. When the architect is appointed, then we promote them to use the specification tool, and the same with the tender. We both promote the service to the property owner and to the main contractors. There we're also proposing that which companies they should send the tender documents to, as we have all that kind of information within our project information. One example could be if they're going to build a swimming pool in a small town, then we can tell them which contractors has been building swimming pool the last years, so they get the right people to put in their bids for the project. The same with the property information, where we are helping the property owner to find tenants, and we can do that already before they have finalized the project. Next page, please. We are moving over to the highlights of the quarter. If you look at the highlights for the quarter, we start with the construction market as such. You can say that it's a very challenging market for the moment. The construction industry is facing quite a hard time. Shortage of number of building materials that have been—it 's rising interest rates, which have then sharply increased prices. That have caused a problem for the market, as a lot of, or not a lot, but some of the bigger property owners have decided to postpone the project. There are also quite big delays within the ongoing projects. What does this mean for us then? It normally doesn't really mean anything for us because when the market is going up or down, they still need our services. In this case, we can see that especially on the new sales side and the marketing services that we are offering to the clients have been postponed, meaning that they have delayed the decisions for buying our services due to the fact that they probably don't have anything to sell for the moment. That's a kind of a problem for us. This was something we also faced exactly at the same time with the COVID situation two years ago. Then it was running over quite rapidly as the construction market never really closed. This time we can feel that it's we don't really know when it will end, and it's probably a slightly bigger problem for the market as such. On the other hand, we can see we can still continue to grow, and we can still keep up our margins. We feel that we are quite confident in the long run that this will not be a problem for us. If you look at the financial highlights, we can see that we still have solid organic growth, and we have also improved our results. ARR growth is still 8%, little bit higher than 8%, which I think is a good number. If we look at operational highlights, all the integrations we are doing right now with all the companies that we've been acquiring is going according to plan. We have continued to invest in our future growth by employing a huge number of sales people within our organization. Next page, please. If you look at the numbers, you can see that comparing to Q2, our results or EBITDA in absolute terms has improved. Margin-wise, we are more or less on a standstill situation. Organic net sales going up or around 7%. Our ARR has been increasing, and our cash flow is still good. The net debt has gone from 3.8x to 3.3x. I think all the numbers are going in the right directions in this case. Next page, please. If we then look at the operational highlights, and as I said before, we have continued to invest in our organization. As I said, we have invested in a huge number of sales people. We have, during the last quarter, added 30 new sales people, mainly in the U.K., where we see a huge potential to increase the market. We see that it's very underserved as it is right now, especially in comparison to the Nordics. We have also been investing in sales training and company culture, which is important. As we have been acquiring companies, it's important that they come to the same, that we have the same view in all our units. We have also rolled out the e-Tendering in the Nordics, and that has been a positive thing. We had the biggest exhibition in Sweden last month, where we have a huge interest for the service. We also started the rollout of the specification service in Denmark, the product information in Portugal, and the product information in Czech Republic and Slovakia. We have also now started to expand our product database with an eco-label service, which I think is something that the market actually needs a lot to see what kind of footprint the different product has on the market. When it comes to the group functions, we have strengthened that now, and that's completed. Another big thing is on the synergy side. We have now integrated NBS, our U.K.-based service that has had an operation in Australia. That has now been integrated to our Australian company, BCI. That will have a positive effect, EBITDA effect on the cost reduction of around SEK 10 million on a yearly basis. We also continue the synergies development when it comes to IT and sales for future. We still have a very strong M&A pipeline, which we hopefully then will see in the coming quarters. Johnny? Good. Let's dig into the financial performance a bit more. We jump to page 13 and start looking at the ARR growth. As Stefan said, the ARR growth has slowed a little bit. We have a total growth of 10% in the quarter on a rolling 12 basis, of which 7.8% is organic in the reported numbers. It is a little bit slower, and it's the new sales impact that we have seen in the quarter with the delay in closing new deals with the subscription business. We will come to the retention rate later on, and that has actually improved in the quarter. We see no impact on the market turbulence on the retention numbers. It's on the new sales. Still, we have a strong growth on the ARR base on a 12-month basis with an 8% growth level. As you can see, the new sales is still significantly above the net churn. If we move to the next page where we can see then the net retention, as I mentioned, this we have done not on a pro forma basis, but as if all companies would have been with the group for the last 12 months. This is the chart we have shown you in the previous quarters, where we saw a bit of a dip in Q3 and then an improvement starting. Q4 was increasing, and then now Q1 is again up with 2 percentage points on the net retention. We're up to 83.1% in net retention across the group. While you see the organic growth then on the ARR base has decreased in the first quarter due to the market impact we talked about. If I break this down, we were still growing very strongly in the U.K., which you will see on the segment performance. While the slowdown has been apparent, especially in the Nordics region and partly in Continental Europe also, and a little bit in APAC. I think U.K. has been fairly strong while the others have been impacted by this market turbulence. If we move to the next page 15. This is of course the reported numbers. As you can see, we have increased sales versus a year ago with 87%. That's of course the majority of that is coming from the acquired units now being part of the group, and they were not fully in Q1 last year. Organically, we still have a 7.1% growth in the quarter versus last year. On ARR in reported terms, not then including all units, but the ones part of the group, it's 8.2%. We are cruising slightly below our 10% target at the moment. If we turn to the EBITDA side, we actually improved the absolute EBITDA in the quarter versus Q4. We come out at SEK 173.5 million, and we did SEK 170 million in Q4. It's nice to see that the absolute EBITDA is growing a little bit in the quarter, and we're keeping the margin level from the fourth quarter stable into Q1. As you know, we took some investments in Q4, and we talked it will take some time before they pay off with new sales and then coming into the P&L, and you still see that effect. We have the cost for the increases in the sales force we have invested in, but you still haven't the benefit effect on the top line compensating that. That will come in the future quarters. If you look at the cash flow, it was SEK 145 million in the quarter. We took some exceptional costs, as you will see, in the quarter, mainly relating to the integrations of the acquired units. Stefan mentioned Australia, where we have and moved the old NBS operations into BCI. There we have terminated a stock base, which has an exceptional cost in the quarter. We have also done some activities in Spain with the two smaller acquisitions. We closed down an office and actually two offices and moved into one, and the same with Ireland and U.K. That's the exceptional costs you see in the quarter or non-recurring items. If we look at the net debt side, we have a reported net debt of 3.3x. We haven't pro forma the Q1 on an LTM basis. If you remember from Q4 report, we had 3.1x versus pro forma EBITDA, and that's actually down 2x-3x if we were pro forma. We are decreasing net debt to EBITDA on a like-for-like basis. You will also see that absolute net debt level has decreased in the quarter. We feel like we're keeping good track on the cash flow side. If we then look at next page when digging into the regional performance or segment performance. If we start with the Nordics, our old home market, we can see that the growth speed has decreased in the quarter in the Nordics. We are delivering still a solid organic net sales growth of 5.7% and ARR of 6.1%. This is slightly slower than the quarters in last year, where we had a solid over 10% performance in any quarter. Here you can actually see the effect on the new sales level, that it has been hard closing new deals in the quarter. We believe this will pick up once the market is out of this turbulent situation. EBITDA is still holding up well, so we did SEK 61 million in the quarter in the Nordic region. The share of subscription is down a little bit because this effect we talked about is also seen on the direct revenue side. Some of the marketing services which are reported as direct revenue has also been impacted by clients delaying decisions. If we move to the right side of the page with the U.K. & I nternational segment, here you see a strong performance in the quarter both on the EBITDA side. They also deliver SEK 65 million of EBITDA in the quarter, so significantly up from the fourth quarter. Even if we adjust for that headquarters allocation we had in the fourth quarter, if you remember, we still have an allocation in Q1 of headquarters cost, but still the underlying EBITDA is strong in the U.K. This is the first time we show you the organic growth numbers for the U.K. segment, and we had a net sales organic of 14.1%, a very strong number. Also the ARR growth on a rolling 12 is 10.9%. The U.K. market is delivering a strong performance. Here we see limited impact from the market turbulence. There is a bit of impact on the Glenigan business, the project information area, while NBS has not really seen any impact in the quarter. You also see the share of subscription revenue. They have less of these direct add-on business, which we're actually planning to increase over time, but 96% of the revenue is subscription-based in this segment. If we move to page 17, first on APAC & U.S., the BCI business. Here we don't have the luxury of comparing to Q1 last year, so we can only compare ourselves to the Q4 of last year when we bought the business. As you can see, we are growing revenue in the quarter versus Q4, and we're also growing EBITDA margin. This business is performing well and according to expectations. Also growth is there organically, both on the revenue and ARR side. Even though there is some impact on this business from the COVID situation in China closing down and also the lack of building materials and price increases. It also felt in the APAC area. If we break it, the Asia markets are actually performing well, and our small U.S. business has a very strong growth in the quarter. If we move to Continental Europe, same trends basically as in the Nordics. There is a bit of impact on the net sales, so they'll be down to 2.5% organic growth, while the ARR is actually holding up well. Vortal still has a strong performance on the subscription side. We're growing 7% on ARR side organically, while the revenue is impacted by the lack of direct business in the quarter. This is a good, I think, indicator of the future that this business segment will pick up. It's the same split of our performance, so we're still seeing a slow growth in the Swiss market, even though the cost base is adjusted. The profitability is actually better in the Swiss business. The growth is still lacking. You also see that on the margin in the segment, that the margin is improving in Continental Europe, which is the blue line in the graph below. If we then jump to page 18, our last segment, the Other operations, they're doing well, especially if we compare to Q1 in 2021. We have a 15% net organic growth, and also the ARR is growing with almost 4%. There's always a bit of quarterly variation in this other segment due to the issue timings in some of the magazines and the news media we have in this segment. That's why you cannot compare Q4 to Q1. You should compare Q1 to Q1. We are happy with the performance in this segment. On the negative side, you probably have heard that paper prices and also distribution postage is going up due to the lack of paper and also the increased cost for diesel and gasoline. That will have a slight negative impact on the margin in this segment. From a group perspective, it's small numbers. We move forward to the page 19 then, the capital side. The working capital is moving as expected. Our negative working capital is increasing in the quarter. We're down to SEK -630 million of our working capital in Q1 from 587 in Q4. As expected, I think this is good for the business. We generate cash flow when the working capital becomes more negative. If we look at the investment in the quarter, we have spent a bit less in Q1 versus what we spent in Q4 in CapEx. It's mainly that the IT investments are coming down a little bit, as we have said before, and also the tangible is still stable at a very small level. We have done some adjustments in offices, so the lease cost has moved a little bit, but they are where they are expected. A bit lower investment level or CapEx level in the quarter, and that is an expectation for the future as well. Moving to page 20. If we look at the debt side of the business, as we said, we have a good cash flow in the quarter generated from operating activities, SEK 145 million. And the reported cash flow is close to SEK 90 million for the period. If we look forward on the capital base, we have a strong capital position for future M&A. We have cash funds, so cash equivalent funds of over SEK 300 million on the balance sheet. And then we also have undrawn credit facilities. This will give us the firepower for the M&A pipeline we see coming in the future quarters. What we have also done during April, we have actually hedged part of our interest exposure. Again, you know, the interest market is turbulent, and we entered into some hedges according to our finance policy, locking in the rates. Again, we have hedged roughly half of our interest exposure, for average period of two years. We're locked in the current interest level. The net debt, again, this is only the reported number of 3.3x. As you can see, we decreased with 0.5x versus the reported number in Q4. The net debt level is going down versus EBITDA. Last page, 21. We stand firm on our financial targets which we communicated to you before. We still believe we can deliver on the growth target of 10% organically on both revenue and ARR. This quarter has been below the target, but it's only one quarter where we see the effects, and we believe the underlying demand for the services and with our activities, we can beat the 10% level going forward. Margin-wise, we still aim at the 40%. We believe the sales investment and the scalability of the business will pay off. We stand firm on also the margin target. Capital structure, we're down to the, if we would have done a full pro forma, we would have been at the 3.0x. We are meeting that target at the moment. We haven't proposed any dividend for the AGM coming now in May. That's also according to expectations. Thanks, Johnny. We open up for Q&A. Thank you. If you do wish to ask a question, please press zero and one on your telephone keypad. The first question comes from Joachim Gunell, DNB Markets. Your line is now open. Please go ahead. Thank you. Good morning, Stefan and Johnny. Morning. You've previously stated that the big factor has fared, I mean, quite well in terms of growth through recent construction cycle slowdowns. Can you say how, I mean, now that you've acquired a lot of new businesses with new business models, has that shifted this dynamic in any sense? Will the growth rates we see here in Q1, assuming, I mean, a still quite uncertain macro environment, be the best way to look at things for the remainder of the year? Any comments there? If we start with the situation that we normally doing quite well, where even when the market is turning down, I think that's relevant. It's still relevant for all of these business units. The problem is that this is not really a comparable to a normal economic downturn because first of all, the war came much faster, and the lack of building material is not really something that we're seeing before. It's not really that the market is going down, it's more that we have other kind of problems. It might be that the market will go down due to this effect. We don't see any big risk. I think our business model is still strong. We're working with subscriptions. The need of our information is even higher when the market is turning down. We don't see a big risk there. What we see is a small hiccup in new sales when it comes to closing new deals. That's more or less the only area where we see that we're struggling. Because as Johnny mentioned, our renewal rates are still good. They're actually picking up. We can see that over time as well. If we look at this volatility, you know, we talked about it a bit in Q3 when we also saw this lack of materials, a bit of a lack of labor in Q3 as well, and also price increase. That volatility in the market had some impact on the new sales performance. We saw that in Q3 last year, and we also saw a bit of that when COVID hit us the first time, right, in 2020. In certain months or in a quarter, you can see that type of impact, and that's exactly what we see now with the war in Ukraine and also the shutdown in China from COVID, that delay effect, for a month or two, is actually visible now in the Q1 performance, and it has been visible in the past as well, but very short term. Understood. In terms of sequential development, you highlight that it's fairly on par to what we saw in Q4, I mean, both on growth and also perhaps on profitability. Is that, I mean, assuming that trends have remained the same to the beginning of Q2, is that the best way to look at it for this quarter as well? I think, as we are growing the absolute EBIT DA, and then some of these investments will start to pay off. Then we also, as Stefan mentioned, adjusting the cost base with the Australian integration, we would expect that we see the effects of that on the cost side, improving margin over the year. Understood. Just a final one. In terms of capital allocation, can you say anything about your focus here? Okay, you said that you have the ammunition to pursue further M&A, or will you focus more on deleveraging the balance sheet here and focus on integrating the previous acquisitions here in an increasingly uncertain environment? We will continue to do the M&A as well. We still think there are a lot of opportunities out there. We still have a lot of white space to cover. I think that is our ambition to continue to do the M&A as well. We can actually do both. As you say, the integrations ongoing are doing well. I think those are taken care of in the local segment and units. The Spanish ones are managed by the Portuguese team. The U.K. and Ireland one is managed locally, so it doesn't drain resources from a group perspective. We can actually do both, continue integrating and getting the benefits from the acquired units and continue acquiring new companies going forward. Thank you. The next question comes from Nick Dempsey, Barclays. Your line is now open. Please go ahead. Yeah, good morning, guys. I've got three questions. In terms of the impact of the delays in the construction industry, did that get worse towards the end of Q1? Therefore, is the effect of that more pronounced in Q2, in terms of what you've seen so far? Effectively, I'm trying to understand if there's a risk whether Q2 organic growth could be notably worse than Q1. I appreciate you won't want to give guidance on that, but just some kind of directional commentary. Second question, Nordic construction is the place that I guess was most surprising to me in terms of the organic growth in the quarter, because as I remember it at the full- year results, your tone about the momentum there was pretty good. Did you see a kind of major correction there in March? What changed through Q1 on Nordic? Did I just misunderstand your tone at the full- year results? The third question, U.K. & I nternational organic net sales growth comfortably ahead of organic ARR growth, but most of the business is subscription, so I would have thought they would be closer together. Was there any kind of one-off in there that was driving the 14% growth ahead of the slower ARR growth? If we start with, I think, the second question with the Nordics. I think we had a good momentum until year-end, and we could actually see when the war was starting, and we had still some COVID effect at the beginning of the year in the Nordics. That was actually slowing down already from February and then March. That has been a negative effect in terms of new sales in the Nordics. I can't say how fast it will blow over, but it was a similar situation when COVID hit us two years ago in 2020, where we had quite big effect in the beginning of that process because the uncertainty in the market is something that delays decisions. Normally it will pick up quite rapidly because we can't just sit there and do nothing. That's also the client side. I think it will pick up. I'm convinced about that one. You know, the Nordics had a good Q1 last year, so they have fairly tough comparative numbers. I mean, look at the organic net sales growth in the quarter. We were good on direct business in Q1 last year. That's also one explanation. If I break the U.K. down for you, Nick, I think the 14.1% is March versus March because we closed the transactions in March. There's only one month in the quarter, so there's a little bit of temporary direct business effect on that single month, while the ARR of close to 11% is rolling 12. That is the full 12-month underlying trend. I would say that the 14% is maybe a bit strong because of that single month, but also Q1 was a strong period if we would have pro forma'd it fully. It's no change from subscription to direct sales in U.K. It's still, I think 95% of the revenue is coming from subscription; 96%, I think it is. You had another, a third question, which — Of course, the war in Ukraine started in late February, and it's still ongoing. You would expect that to have some impact also. It's still not over and we're in May. Yes, the impact is still there from the war and then China is still shut down. It hasn't, short term, improved. Yeah. If first quarter had half of the quarter without any of those effects really, and only half the quarter with them, and then we're seeing a full quarter of those effects in Q2, should we expect the negative effects to be stronger in Q2 and therefore look out for slower organic growth in Q2? I think the thing we don't like is the volatility, and the volatility is of course highest in the beginning of a shock where people need to adjust the supply chains, they need to adjust to the new price levels when they're bidding for contracts or renegotiating already signed deals. The volatility and change in business focus is more pronounced in the beginning. As the market stabilizes, even if it is at a higher price level for wood products or steel, I think the impact on us should diminish over time. A single month or how fast that goes is very hard to predict, to be honest. Okay. Normally, it is blowing over quite fast because you still need to continue to finalize the projects, and you also need to continue to work. I think as Johnny mentioned, it was much more when this thing's starting. It was the same with COVID. We have a very short sales cycle. As we say, it's two weeks or four weeks or six weeks. Delayed decisions, that's an impact for a month or two, and then normally gets back into the rhythm. That delay in decisions is quite obvious at the end of the quarter. Okay. Understood. Thanks, guys. Thank you. The next question comes from [Michele Berg], Danske Bank. Your line is now open. Please go ahead. Your line is now open. Hello? You can ask your question now. Yeah. Sorry, I was muted. Can you hear me? Okay. Yes. Yes, for sure. Yes. Sorry. With the U.K. development now with NBS and Glenigan consolidated, could you help us what to expect now when they report the full quarter, 14% for just one month? Is that representative for these two combined? NBS is larger than Glenigan. NBS is growing faster than Glenigan, at least historically. What to expect from that mix when we get these two consolidated for a full quarter in Q2 on a group level? Could you help us with that, what that could imply in terms of addition to group growth? Of course, yeah. I think to be fair, they would have contributed in January and February to organic growth, not group now. The group would have been a bit higher on organic, but not counted for January, February. They're only counted in [inaudible]. Fr om a group perspective, that would of course have improved the group. If you break the two of them down, NBS is growing slightly faster than Glenigan. Glenigan is, as we said in Q4, approaching the 10% momentum, while NBS has been above that for some time. Yes, NBS is contributing a bit more, and if they're in the full Q2 as they will be, that would add a positive contribution to the group because that's three months and not one month on a group level. On the other hand, we also have been investing quite heavily then in terms of sales people in Glenigan, which will have a positive effect, especially on ARR then in the coming months if we get the effect of that investment. That should translate to organic growth, momentarily or over time, or? It's over time because it's still deferred revenue. Our ARR growth will be quite rapidly, but over time when it comes to net sales. With the first phase on ARR, of course, since we're selling subscriptions, and then you need to remember that Glenigan is 1/3 of the U.K. segment. The impact is on the 1/3 coming from Glenigan, and 2/3 is still NBS, and that's cruising very well at the moment. Okay. If we would disregard the potential price hikes when you upgrade the platform or your customer upgrades the platforms roll over to new platforms at a higher price point, should we expect you to raise prices on new sales on the new business you do for the rest of the year? Or what's the potential for doing anything on prices for you? Of course, if prices overall is increasing, we need to follow, that's for sure. I mean, in terms of increasing sales to the new platform, I think the biggest opportunity is to increase the market still. Of course, we will also look at the price potential for the service, not just on the new sales side. It will be also on the existing side. We're following our price strategy on both new sales and the renewal side, and that's moving doing well. We get the question sometimes of maybe the increased inflation has that an impact on your business. Again, we have locked in the salary deals for 2022, so we don't see any impact on salary inflation at the moment since we have already agreed that for the year. Maybe for next year that can have an impact, and we then need to think if it's compensated additional price increases versus a guide. Okay. Could you help us, given that the market is volatile, uncertain now, especially in Europe and in the Nordics. What can you do on a company- specific side that you are still doing platform upgrades, introducing the new or the big factor sales model and other stuff? Could you help us just to understand what you're doing that would enable you to potentially perform ahead of the market organically, when having all of these initiatives kicking in, the potential effects of that and the timing of it, and the potential timeline of those company specific effects having an effect on organic growth, that would be good. If we start with the implementation of the Byggfakta sales model, which is the first thing that we always implement, especially when we're acquiring new companies. That gives us the opportunity to decide by ourselves how much we would like to invest in staff and that's how much we could increase the market. There I'm pretty sure that we will continue to do better than the market in of itself, because that's all within our own hands. That's not really the problem. The problem has been the volatility that is going up or down. The uncertainty in the market. There we have been rolling out the big factor sales model in more or less all the units, and we are continuing to work with that; t hat takes some time. On top of that, we have also been increasing the sales force quite heavily. It will take some time, but it will have a positive effect. We will continue doing that even if we have a slower market right now, because we still see that we can increase the market in itself. We know that over time, it will have a very positive effect for the company. If we could give you absolute numbers, it's difficult in this case. No, no. We continually be keeping the speed on the sales force and building the pipelines, and I think that it's a matter of time before it loosens up and decisions are taken. We're not doing something significantly different just because there's a month or two with the volatility in the market. The underlying sales strategy still is intact. The underlying need for new buildings is also huge. I mean, the population is increasing. We still have people live [audio distortion] in the long run [inaudible]. Yeah. So speaking on that, on the market picking up again, especially the Nordics hit now in Q1. But you said that you expect the closing of this to pick up when the market is after the current turbulence. Could you help us with what you define of potential timing of that and the potential for you to reach the 10% growth target organically for the full year? You say on a medium-term level that you are confident to reach it. Would it be possible this year, given that we're now through almost half of it at a lower rate? No, but I think we're still optimistic that we will be close to our targets even for this year. I mean, it's not that big numbers that we need to improve for the last three quarters that we're still working on. I think the Q2 so we still have some effect. As Johnny said already before, I think the problem is that when you can't really see the prices that you could count on. In this case, that's the problem. If the market is normalizing that it will be higher prices, then the market will accept that and we start from there; t hat's not the problem. The problem is when the prices are going up and down, and you can't really predict how much this building will cost, then they rather wait. That has been the problem right now. I think that will fly over quite rapidly because the underlying need is still there. I think what we need to understand is we're not worried about the construction cycle as such. If the new building starts are down with 5% or 8%, or if the price level of a new building is increasing with 5% or 10%, as long as it's predictable and not a short-term volatility on those things because that is causing the delay in decision-making buying our services. When you cannot price a new project because you don't know what the steel will be or the wood will be, that is of course changing focus from our clients and has a short-term impact on our sales performance. They want to delay decisions for a month or two. It's not the contraction market that's stuck or impacted. Okay. We understand it's the new sales that's been lagging now. You said that the renewal rate has been good. You might have had a comment on it earlier. I didn't pick that up. Could you remind us what you are seeing in terms of renewals and the potential for decreased churn going forward? We have it on page 14, which is the quarterly performance on retention. It's up to 83.1% now for Q1 versus 82.9%. We are improving the retention level. As we talked about, normally we can improve 1 percentage point per year, and that trend is going in the right direction from Q3, Q4, Q1. We don't feel any impact of this on the retention side. That's also diluted then by the new acquisitions which are normally coming in slightly lower. The underlying businesses, the old businesses are still actually improving. Okay. Thank you very much. The next question comes from Dennis Berggren, Carnegie. The line is now open. Please go ahead. Good morning. Just two more questions from my side. First, would you be able to elaborate a bit on the effects from increased pricing level change here in Q1? From what we hear, I guess we're seeing some price increases from new customers adopting Byggfakta SMART, for example, and sort of the total impact on the sales growth levels here in Q1 from that. Secondly, if you would be able to elaborate on the impact from the market turbulence with regards to sort of the magnitude of the effect from shortage of materials versus just an overall rate uncertainty, if that makes sense. Thank you. On the first, I think we never break down the price upsell and the gross share numbers, so that's baked into the retention level. As we don't see any impact on the retention side, we can still keep up the price increases as we have done in the previous quarter. That remains impact in the Q1 period. We can still upgrade to SMART, take the price increase from that. We can also move up the existing clients in the other markets. That price growth effect is still in the numbers and following the same levels as previous quarters. On your second question, breaking down this market impact, I think that's very hard to see because we have so many clients and so many new clients we're talking to. Judging exactly what's the magnitude is and what's the underlying reason is hard. We only feel that, well, decisions are delayed, and it's that's because of the material price problem. Yes, that's what we hear, at least as anecdotal evidence. I think it's more also the focus with our clients that they are right now, first of all, believe on ongoing projects, they need to renegotiate prices because it changes from when they sign the contract until they have been able to deliver. They're also lacking—i t could be a wood floor, for example, is totally impossible to get right now. Or if you would like to have a heat pump from me, you do have to wait one year. I mean, that causes problem for the market. I mean, they might need to find other suppliers. That will over time be solved because that's always solved in a way. Short term, it has some negative effect. Perfect. Understood. Just following up on the net revenue retention, and I know that you won't be that explicit on the numbers, but do you see any meaningful contributions from upselling? How is that developing, especially with regards to the rollout of new products or platforms? I think in terms of that, I think both upsell and new sales has been affected by that. The delays of decisions. That's where we see the problem right now. When it comes to pure and newest, I think it's actually extremely stable. That's when still given even though upsells has a bit of impact, we still improve retention with 0.2% in the quarter. Well, the upselling impact is much smaller than the new sales impact. From the rollouts where we mentioned, there's no meaningful sales numbers or revenue numbers coming from the rollout. They're still in early stage. We're testing it. We have some paying clients, but it's not visible on a segment or group level yet. It takes time to roll out new products. The interest for the tender product, for example, on the exhibition in Stockholm last month was big. We see the need for the product and the service. Perfect. Thank you. The next question comes from Charles Brennan, Jefferies. The line is now open. Please go ahead. Perfect. Thank you. Good morning, guys. Just two questions from me. The first is back on the idea of second quarter organic growth expectations. Am I right in thinking that the Q2 organic growth last year was about five percentage points better than Q1? You're having to overcome a much harder comp. If I think back to last year, I think the Nordics had a standout period in the second quarter. Given the market uncertainty, what gives you the confidence that you can climb those tougher comps? Or are you essentially saying that so much business comes in June that it's just too difficult for you to predict at this stage? Secondly, if we go down the P&L, I'm not used to dealing with this holiday pay accrual through the course of the year. Can you just remind us of what normal seasonality on margin would look like from a base of 33% in Q1? How does that flex, particularly as we go through Q3 and Q4? Then you're obviously doing some things on the cost base. It looks like headcount was flat on the year-end. Have you initiated broad-based cost containment measures given the uncertain markets, or are you only doing that in Australia? Thank you. Yeah. If I take the quarter, of course, we had a strong first half of last year. The comparators in Q1 and Q2 is tougher than it will be in the Q3 and Q4. One would expect that it's easier to over-deliver on Q3, Q4 performance. Again, Q2 was, as you say, strong in the Nordic region in Q2 last year. The margin over the year that we will always have a strong margin in Q3, as we saw in 2021 due to this vacation releases, especially visible in the Nordic region. We will follow the same accounting treatment in 2022, so we'll also have that effect in Q3 this year from the vacation releases in especially the Nordic region, but also a smaller impact in the other markets, U.K. and Continental Europe. Is there a way of quantifying that? You know, how much stronger should a Q3 margin be than Q1 given that holiday position? I think if you look at the Nordic margin over last year, you can see that if you would draw a straight trend line, Q1 to Q4, then you would see the impact from that vacation release. I think that's the best way of normalizing the margin across the year, the trend line, and then what's different versus the trend line in Q3. Your last question, Charles, is on the cost reduction. Well, we are integrating the acquired units, and the biggest impact is from Australia, as Stefan mentioned, from that integration of NBS into BCI. You're also doing some in the Spanish market with the two acquisitions there and also in the CIS Ireland. There are some cost savings coming from the acquired units in other segments as well, not just in Australia. Overall, what we're doing on the staff side, keeping the total base. There’s some impact on the integrations, but also we are investing in sales, and we see some efficiency savings in other cost areas. That’s why we can say flat on number of employees. There were some overlapping functions that we're actually reducing, so it's. That's something we do over time, so it's— Okay. It's not a general cost cut, it's more a general efficiency. We wanna be more efficient, and that we always do. Thank you. There are no further questions at this time. Speakers, I hand back to you. Thank you. What I think you should actually bring with you after this meeting is that even though the construction market is extremely challenging for the moment, I think we are still delivering good numbers, solid growth, and our business model is extremely strong in this case, meaning that we are selling subscriptions, renewal rates are high. The clients need our service, so I think I'm confident that we'll continue delivering good numbers in the future as well. Thank you for your time. Thank you.