Good morning, and welcome to the Byggfakta Q2 2022 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star and then two. Please note, this event is being recorded. I would now like to turn the conference over to Stefan Lindqvist. Please go ahead. Thank you very much. Welcome to this presentation of Byggfakta's Q2 report. It will be myself, Stefan Lindqvist, and our CFO, John Engman, who will guide you through this presentation. Today's agenda will be that we start with a short company overview, that's especially for you who are new to the company. We will continue with the highlights of the quarter, and then John will go deeper down into the financials. We will end up with a Q&A. Next page, please. I think we can take next page again, so we come to Page four. If we then start with Byggfakta at a glance. As you can see, the map shows you which areas or which countries we are present in. As you also can see, we are the number one in most of the areas where we are present. To be the number one is an extremely important position to have in this industry. The main reason for that is that it's extremely high barriers to enter into this market when you once have got this position. As you can see, that's due to three main reasons. The first is that you need to have the technical platform that needs to be state-of-the-art. Secondly, you also need the unique and proprietary data that is manually collected or partly manually collected, and it's extremely difficult to collect. Number three, you also need a client base. As you can see, we have a very huge and diversified customer base. We have more than 47,000 clients, meaning that we also are not depending on one or a few bigger clients. Another thing is that you can see is that we also operate with pretty good margins, and we also have most of our revenue coming from subscriptions, which also means that the business is very predictable. We can foresee what's revenue we can have for the coming 12 months. Next page, please. This is then that we are doing. If you look at this page, you can see that the main product or the core product that we have is something that we call the product information. That's a service where we are collecting information about all planned and ongoing building projects. We try to find the project as early as possible when the property owner has to have a plan to build something. We follow the project during the project's lifetime, adding on the name of the architect, the technical consultants, the contractors, and the subcontractors. Due to the fact that we have this service, we can also then add a number of other services like specification information, the product information, and the e-Tendering. Next page, please. If you go a little bit deeper into each one of these products, and we start with the product information. As you can see, that's more or less 50% of our revenue. As I said, that's a service where we are collecting information about all planned and ongoing building projects. Then you normally ask yourself, "How do you do that?" There's a number of different sources that we're using to be able to collect this information. Of course, we are crawling the internet to find information in an early stage. One example of that could be that we are crawling the town of Gothenburg's homepage, finding out that they have decided to explore a piece of land to build industrial buildings. That generates a call from our side, where we try to get the name of the property owner. In the beginning, it might be that they don't even have the name of the property owner. After a while, they will give us the name of the property owner, and then we continue to do the interviews with the property owner, adding on the name of the architects, the technical consultants, the contractors, subcontractors, and so forth. Another example could be that we could crawl the internet and find out that in the local newspaper, finding out that the school in Åkersberga burned down yesterday. That means probably that we get two new projects. First of all, they need to clean up the old school. Secondly, they probably also need to build a new one. That's some example of how we are crawling the internet. This also means that we always calling or interviewing the decision maker, which also is important in this stage. The second source that we are using is that when we are making all these calls, it's in our DNA that we always in the end of the calls ask, "What else are you doing?" That is actually the most important source for us to find information in an early stage. Then you probably ask yourself, why on earth are they giving you all this information for free? There are two main reasons for that. The first thing is that it's an excellent opportunity for them to market this project, so they get the best offers, the latest innovation when it comes to product development, and so forth. The second thing is that they are normally extremely proud of the project. Even if you are a professional builder, you don't do that many projects during your lifetime. It's almost like they are talking about their own kids. The third source that we also are using is that we are also collecting all searched building permits. Normally we call that our safety net, because the searched building permits is kind of late information, but it secures that we cover 100% of the market. The problem with the building permits is that it's fairly late information, meaning that most of the decisions are already taken. That's the reason why we try to find the projects much, much earlier. In over 82% of the cases, we have the projects before the stage of the searched building permit. You probably ask yourself who are then buying this information? That's all kind of companies, everything from banks that would like to finance the projects. You have, of course, the architects, the technical consultants, the contractors and subcontractors looking for more jobs. You have all the building manufacturers or suppliers which would like to sell their product into the projects. You also have other kind of service providers like companies renting out or cleaning up construction sites. It's a very diverse and diversified customer base when it comes to the product information. The second product that we have is what we call specification. Here and here we have developed a technical tool that helps the architect to do the specification in connection with the drawings. Because when you're making a drawing, you also need to specify it in text. This is a system that is integrated with all the big CAD manufacturers like Revit and ARCHICAD and so forth. It means that you can drop and drag this information. What it helps the architects to do is that it helps them to follow the latest norms, rules, and regulations. It also avoids them to make mistakes directly on the drawings, which normally is something that's very common that this happens already on the drawings. This is a service then used by the architects and also paid for by the architects. It also creates a lot of efficiency because if the alternative to this is that they're using normal text editors like Word or anything else like that, and these are documents which are several thousand pages big. It saves a lot of time for them. The third product area that we have is then product information, and this is a service where we're collecting information in a database of all the building manufacturers' products. This is also then integrated both with the specification and the CAD systems. When an architect sits there and should put the window into the drawing, they can search in our product information database, see which manufacturers fulfill their requirements, and just drop and drag the information directly into the drawings. This database is then including information like the, you have the BIM objects, you have the 2D and 3D CAD details, you have all the environmental information, which today is even more important than ever. You can see what kind of footprint this product have on the project. You have also the specific building Specification for this product. It's all necessary information that they need to complete the drawing. In this case, it's the manufacturers who pays for this service, so it's free of charge for the architects or the contractors to use this information. The fourth product area that we have is what we call e-Tendering. This is a service where we are helping mainly the property owners and the contractors when they are doing e-Tendering or eProcurement. Here we actually are using all the other services as a like the Project information and the product information, so we can actually propose who they should send the tender documents to. One example could be if they are going to build a swimming hall in a small town in Sweden. They don't know which contractors have built swimming halls in the past because this is something they don't do every year. They can search in our Project Information database, see which contractors have been building swimming halls in the neighborhood in the past, and then send the tender documents to them. Another example could be if, for example, we would like to tender for building material. They can also use our Product Information, and we can actually propose who they should send the tender documents to. This creates both transparency, but also increased competition when it comes to prices and costs. Next page, please. Go into Page eight. Now we're going into the highlights of the quarter. If we start with the financial highlights, we are very proud of to present that we have a very solid organic revenue growth and earnings development. That's even due to the fact that the construction market has been very insecure and volatile. It also shows how strong our products and services are and how they are needed in this kind of environment. We can also see that we have an organic ARR growth, meaning that our subscription base has been growing with 7.2%, which we are also proud of, even if our financial target is that we should be double digits. I think this shows that we have a very strong position in the market. Moving on to the operational highlights, here we have strengthened and optimized our organization for increased efficiency. That means mainly that we have changed our executive management team with more operational skills and focus. We have also finalized our first foundation of the integration of all the acquired units that we had been acquiring during 2021. That's now finalized. If you look at the market highlights, we can see clear signs of stabilization in the end of the quarter, which I think will give us some trust for the future. We also know that there is an increased need of our products in a weaker market. That means that whether the construction market are slightly going down, our clients actually use our information even more because they need to find new potential clients. That's good for us. Next page, please. If we then moving over to the financial highlights, you can see that the net sales have increased with 44% compared to the same quarter last year, and with close to SEK 30 million compared to Q1 this year. I think that shows that we have a very strong position. Our organic net sales have grown with 6.4%. Our ARR growth have grown with a little bit above 7%, so that's also good. It's almost SEK 68 million since last quarter. Our EBITDA, our adjusted EBITDA is on all-time high, so we're very proud about that as well. It's even SEK 9 million better than last quarter. As you can see, our cash flow from the operating business is still very, very positive. Also the net debt is now close to our financial target of 3.0%. It's going down as we haven't done any add-on acquisitions during the quarter. Next page, please. If you then look at the operational highlights, we have changed the group management as I told you before. That's the reason or the background for that is that we would like to improve our collaboration within and between our different businesses, and that will actually speed up the rollout of the full product portfolio in all the units. We have also been able to save some costs in combination with this reorganization. We have also taken out some synergy potentials that we have had in the business. The biggest one is actually where we have merged our MBS business in Australia into our BCI business in Australia, which will create another SEK 10 million of cost synergies starting from the Q4 this year. We have also continued to work hard with implementing our sales model and also work hard in the content optimization, which also will save some cost in the future. The most important part is that we have continued our focus to roll out the full product portfolio into the different units. Where we have started is the rollout of the e-Tendering in the Nordics, the specification information in Denmark, the Product Information in Portugal, and Product Information in Czech Republic. That's a positive thing that we are now in progress doing all these kind of things. Another important thing is that our sales teams are now fully staffed across all our geographies. What we also have done is that we have increased our M&A activity, so we have a very good pipeline for the future, which we hopefully will benefit from in the coming quarters. Next page, please. Johnny? Thank you. Let's move to Page 12 then and dig a bit deeper into the financial performance of the quarter and then of the year- to- date. We start off with the ARR side of things. This is the total ARR growth in the quarter. We have grown 42% in the subscription base since last year. The organic component of that is 7.2% organic growth. As you know, this is a forward-looking indicator of the reported revenue to come. We're quite happy to keep up the growth speed at a good 7% level, even in the turbulent market conditions we have seen, especially in the beginning of the quarter. This development has been secured by strong retention levels. We've seen improvement in the retention of the existing client base, while new sales performance is a bit weaker than expected, as we reported already in the Q1 period, that trend has continued, especially in the start of the quarter. We see some signs of stabilization in the overall construction market. Price levels are still high, but they're not as volatile. Our clients are starting to adapt to this situation they see in the market. We're also happy to see that the subscription share is 85% of the total revenue base in this quarter, which is a solid number. We have seen some weakness also in the direct revenue or the add-on sales due to this market volatility that has also suffered a bit in the quarter, increasing the subscription share then as a total. If we move to the next page, looking at the retention on Page 13. Here we have broken the graph into two parts. One is the actual net retention, which includes all units owned more than 12 months. There we are cruising at a strong 85.8% in the quarter. It's up with 0.6% versus Q1. You see a bigger increase from last year when we include the U.K. units where which has a very strong retention level. Still quarter-on-quarter, we are improving nicely. We have also seen a like-for-like, including all units then, also the ones owned less than 12 months. Here we see a 0.1% improvement on the retention. It's very good to see that, even in the tough market conditions, we increase retention levels across the total portfolio. This is a sign of strength of our business model, that our existing clients use the service, and they like the service, and they renew more than they did last year and also more than they did the first quarter. If we then turn to the total financial performance on Page 14, Stefan partly covered this, but you see on the graph that we continue to grow reported sales quarter-on-quarter and also the adjusted EBITDA is following nicely. We are proud about the SEK 9 million increase in adjusted EBITDA versus Q1 and also a strong SEK 30 million sales uplift on the reported sales. Yes, we get some help from currency on the net sales, but still the organic component is 6.4% organic growth in the quarter versus a year ago. Cash flow is also good, SEK 124 million in the quarter. As we have said before, I think cash flow is always strongest in Q4 and Q1, where the size of the annual subscriptions is slightly bigger than it is in the Q2 and Q3 periods. Cash flow is normally a little bit weaker in those two quarters and stronger in the Q4 and Q1 period. Net debt on reported EBITDA is 3.1%. This is not the pro forma EBITDA. If we would do that, we would be at our target level if we pro forma the EBITDA. Overall, a quarter we are happy with. If we go to the regional performance or the segment performance on Page 15, that there is a mixed picture. If we start off with the old core, the Nordic region, there the development follows on Q1 with slightly lower net sales organic growth, and also the ARR growth is lower than what we have seen in the past, cruising around 4% or 4.7% on ARR. We have seen the market impact, especially in the beginning of the quarter across the four Nordic markets, maybe with the exception of Norway, which has had a very strong performance in the quarter, but the other three are weaker. You also see on the net sales that we're still growing a little bit in the quarter, but we need to regain momentum in the Nordic market once this turbulence is over. Still, the margin is good. If you look at the margin for the quarter is 36.7% versus a year ago at 35.8%, and these are like-for-like numbers. Yes, the margin is strong and improving in the Nordic region. If we move over to the U.K. on the right-hand side, there has been a strong performance also in Q2, where we see organic growth rates above the 10% level, reported sales 11.6% organic, and also the ARR base is growing with 10.9%. Both our U.K. businesses are doing well. I think NBS is doing really well, and also Glenigan is cruising at the 10% level for the quarter. We see an improved retention level, especially in Glenigan, also driving the organic ARR development. Profitability is good in the quarter. It's up to almost SEK 70 million of adjusted EBITDA in the quarter, while the margin level is slightly down. One thing is, of course, the allocated headquarter costs we have in this quarter we didn't have in last year's Q2. We did a catch-up allocation, if you remember, in Q4. The other reason is the investment in the Sales force and fully staffing up the sales teams that Stefan talked about that cost some money initially, but then pays off in improved growth performance over time. A very strong development in the UK segment. If we move to Page 16 then, continental Europe, in absolute levels, we are growing the revenue base with SEK 3 million. Organic development is 3% or 3.1% in the quarter, while the ARR growth organic is slightly stronger with 5.4%. That's positive for the future that the ARR base is growing, that will result in reported sales going forward. Adjusted EBITDA is close to SEK 30 million in the quarter and a strong margin of 29%. Overall, a solid performance in continental Europe, driven by a strong Portugal development. Switzerland is still not growing as fast as we hope, but the margin is improving in Switzerland. Last of the construction segment, then APAC, U.S., the BCI business. Here you don't see comparative numbers because we haven't owned it for 12 months yet. But in absolute terms, the revenue development was good in the quarter. It grows from SEK 78 million to SEK 90 million versus Q1. It's almost on the double-digit organic levels, even though we don't share that in the report. We're doing good. We see a rebound of the add-on sales or we have in Australia and New Zealand and Asia post-COVID. When the markets are opening up, we can do more of the add-on business, which helps reported revenue. Margin is still quite weak around 20% or slightly below 20% for the quarter. We are still investing in the Asian markets and U.S. to drive this organic performance, where the margin is weaker than it is in Australia and New Zealand. That has impacted the margin in the quarter, resulting in a just below 20% level. This will improve over time as the scalability of the business kicks in in those markets also. Final point, as we said, the integration of NBS Australia and the operations we had from U.K. and Australia is now moving into BCI, and that will reduce costs in that business with around SEK 10 million on a run rate basis, starting from the end of this year. By integrating, we have been able to take down the number of employees, therefore, we save a lot of costs. Page 17, the other segment had a slightly weaker quarter than in Q1. Organic growth is 3% almost, and ARR 1.2. Still a fairly okay profit delivery of SEK 4 million in the quarter. This has been a slightly weaker quarter for this other segment. We expect it to be back on track with slightly higher growth rates going forward. Switch over to cash flow and working capital on Page 18. Here you see our negative working capital has decreased a little bit from SEK 630 million in Q1 to SEK 611 million. This is the seasonal effect we talked about, the slightly smaller subscription pools or number of subscriptions being renewed in Q2 versus Q1. Therefore, the deferred revenue portion is slightly decreasing a bit. But still, resulting in a strong cash flow for the quarter, SEK 124 million operationally. We are keeping the investment level in line with previous quarters. We are spending around SEK 30 million of capitalized development on our software platforms. Also in this quarter, it is the red part of the CapEx bar. You see that being stable now for three quarters in a row around this level, and this is the level we see fit for the business going forward. Tangible investments small, as always. Then we have a slightly bigger lease CapEx because we have pre-booked cloud licenses going forward. It's cheaper for us to pre-book capacity in the cloud, and therefore it comes as a leasing CapEx in this quarter, and then takes a year, and then it comes again. We have also started the project to build a new office location in Helsingborg, where we will merge the two existing offices into a new building. That will mean we switch from rented offices to owned offices because we're building that owned by Byggfakta. That will of course mean a CapEx of around SEK 70 million coming during next year when we build that office. It will reduce rent costs. It is more or less a cash neutral over time event. You should expect that CapEx to come when we start the actual construction of the building. If we move to Page 19, the cash flow and leverage. As I said, the cash flow was SEK 124 million in the quarter. Also, the reported cash flow is SEK 86 million on the last line. Net debt has decreased to 3.1% on reported basis. We sit on a fairly big cash pool at the moment of almost SEK 400 million in cash and cash equivalents. We also have the unutilized credit facilities of SEK 300 million. We have the firepower for the M&A pipeline we see. We haven't done any acquisitions during Q1 and Q2 of size, but now we see the pipeline is strong for the coming two quarters and the remainder of this year. We have also hedged our interest rate during the early parts of the quarter, meaning that 50%-60% of the debt position is now hedged on an interest level to secure us going forward if the interest rates increase further. That has resulted in a positive valuation of those hedges of almost SEK 14 million in the quarter. Last page, as Stefan said earlier, we remain firm on our financial targets. We believe we will get to the 10% organic growth level in medium term, and also the margin will increase in the coming quarters up towards the 40% medium term. That's the aim we have as a company to drive both growth and margin to the target levels. The capital structure is at target level, if you do pro forma of the EBITDA. Again, no plans of dividends, because we see the M&A pipeline, and we can use the cash for accretive add-on acquisitions. Thank you, Johnny. Yeah. We open up for Q&A. Thank you. Excuse me. We will now begin the question- and- answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. At this time, we will pause momentarily to assemble our roster of questioners. Your first question comes from Joachim Gunell from DNB Markets. Please go ahead. Thank you very much. Starting off with the organic net sales growth trajectory here, can you comment a bit on how much of this is driven by previously implemented price increases? Based on the fact that you mentioned that the momentum picked up to call it end quarter, the growth levels we saw in June, how you expect that to move into H2, basically. Yeah. As you know, we had the start of the war in Ukraine in March and April. Of course, those were the most turbulent quarters in the market and also shown in our performance. We see a bit of pickup during the quarter in the different markets as it's stabilizing, the volatility is decreasing among the client base. We're not sharing a June performance as such, but we believe we're going into a more benign market conditions going during the fall. The organic growth split, of course, we are still pushing through the price increases as we do every year. We haven't adjusted the price policy within the group, so we're still cruising at the same speed as we have done previously, following the sector inflation and then maybe some more. Would there be an opportunity to move even faster on price increases going forward? It's something we are discussing and might evaluate over time. Right now, we haven't done anything around that one? No, we're still pushing through the normal. The normal. Level. Understood. Perhaps, thanks, Johnny. Stefan, if you could comment a bit on what you want to see materialize in order to get the organic growth levels to reaccelerate back to your call it midterm ambitions. Whether it's the call it new sales investments that you have already taken that you need to see to reap the fruit from here? Or do you expect still, I mean, sequentially better, but still growth rates moving in the direction which we have seen throughout Q2 also into the coming quarters? How fast it will go to recover to the double digits? It's difficult to say, but I think what has been difficult for us is more the uncertainty and the volatility on the market, meaning that most of our clients have been focusing on other things and then getting new jobs. Because if you take a contractor right now who have an ongoing project where you have price increases could be 30%, 40%, 50%, then the focus of acquiring our services might not be the top priority for them. I think we see some changes in that, especially during June, and that the stabilization of the market is there. We have good hope for the autumn that it will be back to normal, more or less back to normal again. As you said, I think the sales teams are fully staffed, so you would see then if we come back to pick up both on new sales or subscriptions, but also the add-on businesses coming back on stream with more direct revenue, those would be the two sources of increased performance. I mean, again, the Nordic sales team has delivered a 10% organic growth in the last three years, so we believe we have that in place. Yeah. The market is there. Yeah. We know that. Very clear. Final one from me. Can you just share some more insights here on what's driving this sequential improvement, especially in retention or churn? Say what mix effects do you expect given that you will accelerate new sales activities towards adding new customers which tend to have somewhat higher churn over the coming quarters or can we expect this trajectory to continue? What we can see is when we are implementing our, what we call then the Byggfakta Group's sales model, which also includes that we are working harder with onboarding and also helping the clients to use our information or our services, that it will over time improve our renewal rates quite a lot, to be honest. If you look, we can take one example in U.K., where when we bought Glenigan, for example, they were down to 74%, 73% renewal rate, and now they are close to 80%. When you start working with this, it over time, it will improve, and that's what we're doing. That's actually something we do not only with the newly acquired businesses. This is an ongoing project that we're working also with even in the Nordics or with NBS in all the units, that we're working hard with onboarding and to be able to touch all the clients a number of times every year. That has a good effect. I don't think in this quarter we had a very strong new sales performance a year ago in Q2 in 2021. Of course, we have more first-year clients in this quarter to renew. If you look forward and if you have meeting week and new sales quarters a year from now, then you would have a smaller portion of first-year clients. That should help our overall retention levels because the fewer first-year clients we have, the better for us. Understood. That's all from me for now. Thank you, and have a great summer. Thank you. Thank you. Thank you. Your next question comes from Nick Dempsey at Barclays. Please go ahead. Yeah, good morning, guys. I've got three questions. Just touching again on that point about conditions improving towards the end of Q2, I just wonder if you could give us a little bit more detail on whether there's a number of customers who you've already started to see taking up new products or whether it's something that you're observing in the industry, but you've yet to see the effect of that stabilization on your sales progress. That was the first question. Second question, just looking at APAC US in the quarter, absolute revenues are quite a step up from Q1. Of course, you have underlying growth there, which you've explained, but there's clearly some seasonality there. Maybe you could just talk us through what drives a bit of seasonality through the year in that division, so we can try and get it right for the rest of the year. Yeah, you've hedged 50%-60% of debt, but should we think about net interest in the second half and 2023 stepping up clearly versus what we had before, if the 40%-50% that's not hedged is gonna take a step up? No, I think we will take it back to starting with question three. Of course, if the 40% unhedged, if the base rates goes up on euro, SONIA and then STIBOR, then you would see a small increase in the interest cost for the company. It's not big at the moment, but again, if 40%, it's a 1% interest increase, it's not a big sum of interest. Yes, you can expect that to move up if interest rates are increasing. On the other hand, we also need to remember we have a ratchet on the interest margin. If leverage goes down, we also get the benefit on the margin side on the financing. The APAC US question two, do we see any seasonality in that business? Not really. It's not a seasonal effect. It is a strong quarter, especially for Asia and then US. We're driving good organic growth, and that is seen on the revenue side. We also see a bit of pickup in the add-on businesses in Australia and Asia, as we talked about when COVID and the market is opening up in those areas, we see a return to some of that add-on business we have, and that's driving revenue in the quarter. Part of it is that opening up post-COVID effect also. I think it's some things that was difficult to sell during the COVID period. Now it's mainly the one-off things. Even if it's recurring, it's not subscription. It's marketing activities that we can do right now. Number one question was for Stefan. It was if we see there's a market thing or do we see it in the internal, the stabilization towards downward? Well, I think it's two sides. I think, first of all, most of what we are doing is internal, meaning that we can impact our own sales. What was the problem in the beginning of the quarter was that the lack of time that we got with the clients was limited because they were focusing on other things. In the end of the quarter, they were starting to see the light in the tunnel again, and I can see that the stabilization of the market has meaning that they are knowing that the availability of building materials is there, and they know the price level and so forth. I think it's coming back to a normal situation. Even if prices will end up on a higher level, it's still more stabilized, and we got the time with the clients, and that had an effect on our own sales. We can't see that the volatility will continue during the autumn because I think that has been the problem for us. Okay. Thank you, guys. Yeah. Thank you. Your next question comes from Viktor Högberg at Danske Bank. Please go ahead. Yes, good morning. Cash flow continues to be good, and you reiterate your M&A agenda as well. Would you say that you're comfortable with the integration work in the already acquired entities as much as now you're comfortable to add more? Would it be better to focus on organic growth? Or what are you seeing in terms of on the M&A opportunity, both on a regional basis and also a product basis would be very good to get some color on. Thank you. No, if you look at the integration work that we are doing right now with the newly acquired businesses, I think that's on track. I think we are happy to continue to doing M&A, which is also part of the plan. We think we have the capacity to do that. We are doing the M&A within the product areas where we already are present. I think that's part of the strategy that we have. We have not planned to go into any new markets for the moment. New product areas. Yeah. I think new markets might come, but not new products. Product areas. Yeah. offerings. Okay. Not for the moment. Also. Mm-hmm. Okay, I see. Thank you. In terms of your targets of 10%, at least 10% organic revenue growth, on an annual basis, the ARR growth organic is +7% now in Q2. If you would see a normal market, normal levels in the second half, that would imply that the non-recurring revenues take a step up as well. Is that possible, and what's gonna drive that? Some color on that. Well, I think one of the things that we've been suffering during this volatile and unsecured market is on the direct sales. I mean, a lot of the companies, if you don't have availability on your own of selling anything, that you're lacking building materials, you don't do market activities either. If that come back to normal, they will start to spend money on that as well. I think there's a big chance that we will recover part of that in the autumn, that's for sure. Yeah. If someone must get it on there. When the markets open up as well, post-COVID now, you can start having events and fairs, and then you can do meeting campaigns and then those type of activities which were not allowed during the COVID period. We can see a pickup in those add-on businesses across the portfolio as well. Okay. It seems like the pacing of growth was better throughout the quarter. You said that you see market stabilization by the end of Q2. I assume that has continued during the start of Q3. Of course, we're in a vacation period now, but I would assume that is continuing. What does your customers say in regards to their demand of your products? Have you had those kind of discussions in terms of what they're seeing indirectly, which could affect you positive or negative? Do you just see that the market potential is there, so to say? We have continuously discussions with our clients and see if they. We also measure things, how many logins they're doing and how often they are using our services and so forth. We can see that has improved during the last month. Now it's vacation period, and that will also be for parts of our market in beginning of August as well. We can see a clear sign that they will start working again more back to normal levels. We are quite optimistic about the autumn because it has been kind of a challenging construction market now in Q3 or Q2. Normally, that's not really a correlation between the weak construction market and our services, because normally in a weak construction market, the needs of our services are even increasing. That's the normal situation. We think that will happen even this time. Okay. Final question for me in terms of growth. As you can raise prices in line with the sector inflation, and that has been running high past couple of months. I don't know what kind of time period you can adjust for that, but how much of the 6.4% organic growth was due to price and how much was due to volumes? Was the majority price or the inverse? We don't break that down, what is price, what is upsale, and what is pure new sales. New sales, you see a bit. Again, we have been cruising at the same speed on price increases in this quarter as previous quarters. That it is an important component. If the add-on sales and upgrades of the existing is decreasing a bit, then of course, price becomes a slightly bigger portion of the organic growth. That's not implemented yet. We have not been adjusting prices for the inflation in the construction industry so far. Okay. Good clarification. Thank you very much. Thank you. Once again, if you do wish to ask a question, you can register by pressing star then one on your telephone. Your next question comes from Charlie Brennan at Jefferies. Please go ahead. Good morning. Thanks for taking my questions. I've got a few, actually. The first is just yet another clarification on the second half momentum. I know you've talked around this issue, but if we assume that the market normalizes in Q3, does that mean that you're confident that in Q4 you get back to 10% organic ARR growth? Or do you still think that Q4 could be running below that run rate? Secondly, can you just give us some color on the content automation piece that you talked about in the presentation? I understand that there are some cost benefits here, but I guess the more that process can be automated, the more it lowers the barriers to entry. Can you talk, you know, to that particular trade-off? Thirdly, just a financial question. Can you remind us of the margin seasonality in Q3 and the phasing of holiday accruals and on a normal basis, what sort of margin uplift we should expect in Q3? Thank you. Will you start with the last one again? The margin seasonality, we expect the same trend in this year's Q3 as we saw in Q3 last year, especially then in the Nordic segment. You would see that release of vacation accruals in the June month impacting the third quarter. The margin is, for seasonality reasons, always stronger in the Q3 period. You'll see some impact also in the U.K. and Continental Europe segment. You should expect the same type of margin uptick in Q3 as we saw last year from this vacation release. It is quite substantial for the total group. The second one with the content optimization, I think there are two things. First of all, the content optimization will not decrease the barrier to enter the market because this is normally a way of improving the quality of the information. That's this especially then integrated in the newly acquired units like Construdata21 in Spain and so forth. What we're doing there is that we're helping them to use the tools to crawl the net, but you still need to make the interviews. Otherwise, the timing of the project is missing. Because if you report an architect three months after he has been appointed to a project that's too late and that's information that is useless to have. You still need to make the interviews, and you can only get this information directly out of the heads of the decision makers because it doesn't really exist anywhere else. That's what we're doing right now to increase the optimizations and also implementing all these systems within the project leads services, so we can even improve our quality of the service, but also to save some costs because some of this is manually done today. The second area that we also could do this is in the specification information, where we are optimizing the way of implementing the product information into the system. That's done. Today, it's more or less done manually, and now we can do it semi-manually by integrating tools for that we can import information instead of re-redoing it into our system. That's the part of optimization. That will save some costs for the future and also increase the speed when we can implement a new product solution into the system. The first question was around the certainty you can continue to deliver double-digit growth, ARR growth in the Q4. I mean, it's extremely difficult to predict, but normally we are up there in a normal market size, and that has been the situation for the last 10 years. I don't see any remaining reason for not being able to do it in the future. If it comes already Q4, I can't really promise. You also need to remember that the ARR numbers we report are rolling twelve months. If you look at the rolling twelve always, it will take a few quarters before the rolling twelve gets up to 10%, even though the quarterly performance is better. You need to remember that it's rolling twelve ARR reporting. Perfect. Thank you. Thank you. Your next question comes from Dennis Berggren from Carnegie. Please go ahead. Morning, Stefan and Johnny. Could you provide any comments on the gross churn development for Nordics and Continental Europe? Also maybe some comments around how we should think about the organic growth with these in the second half of the year. I mean, you touched upon this before, but we also I mean, in Q1, you mentioned that you see slightly easier comps. Really, how should we think about this, and sort of the ability to quickly return to growth more in line with your target? Yeah. No, again, you don't see the gross churn in the different segments. If you look at the net churn, you see an improved net retention in both the UK segment and in the Nordic segment. We are improving retention of the existing client base in both those two core segments, and that's the driver of the overall group. The fact that we're seeing improvements there, and it is because of the Byggfakta Group's sales model implemented. We are focusing on retaining the existing client base, educating them, making sure they use the information. We see the impact of that in the U.K., but also in the Nordic market that is improving retention. We feel happy about the retention levels improving in those two core segments. If you take the comps, of course, you know we had a strong last year. We had a stronger first half of the year, and then Q2 last year was especially strong. We had a slightly weaker performance in the Q3 and then partly Q4. Yes, we are meeting slightly easier comps in the second half of this year. Again, if we have a good performance in the second half, that would, of course, improve then growth rates. Yeah. Also, could you provide any comments on the rollout of new suites, sort of the market reception and current development versus your own expectations? I guess the timing with the current market conditions, I guess the impact so far has been relatively limited. When are we expected to see a more, let's say tangible impact from, for example, e-Tendering in Sweden? That will take some time until we see real figures in the PNL. We can see we have promising paying clients, and we're making progress more or less every day in that segment. I don't want to give you clear numbers. Again, what we're trying to do when we launch these things is to get the usage and client acceptance up to make sure we get volume of clients on and the data content up and running, and then that is progressing well. Before we're seeing significant revenue numbers, it will take a number of quarters from now before we start seeing any real impact in the PNL from this. The impact you probably see now is that we're taking on costs for these rollouts, so it is impacting the margin of the total group when we're doing these rollouts initially before you get the revenue effect and the positive margin development. It's partly an explanation of the cost level and the total margin. In terms of margins, would you be able to give some more granularity on the impact from these rollouts? No, we haven't specified any numbers, but if you sum them up, it is quite significant investment across the different markets. Stefan talked about with the Nordic rollout, the Denmark starting with Specification. We also see Czech Republic and also down in Portugal. It is costing money, of course, to build up and then launch these services in the new market. We haven't calculated total. Got it. Finally from my side, a question on APAC and US. How large is NBS business in Australia, and what are their profitability margins there? Also, how dependent is the midterm margin development in APAC on a significant revenue step up for NBS? Finally, could you also confirm that the year-over-year like-for-like growth for BCI was close to double digits? Is that correct? Yes, I think you are correct. We see a good organic revenue development in BCI at the levels I indicated if we would have done that calculation. The NBS business in Australia, it is a rollout of the specification service and also the product information they have been doing in Australia with around 25 staff. The revenue is not so big since it's in launch mode and then rollout mode. It has been carrying a quite significant loss due to the cost of that rollout, and that's what we are addressing now by integrating that business into BCI, that we are taking away the losses in Australia with NBS had. It also gives us the opportunity to do some cross-selling, so I think that's the big advantage by merging the units. Yeah. It's the same client base. Yeah. BCI has a product information business called Archify as well, so that integration is yeah, actually overlapping, yeah, and competing. We are taking away a loss we have in Australia, NBS. Perfect. That would be the reason for seeing like a weaker margin development in APAC over the past quarters. We need to remember that with the segment UK is still called UK and International. The revenue and loss have been reported under the UK and International segment because NBS has a business in Australia and a small business in Canada as well, which is still reported under UK. We might change that from Q1 going forward, that the business will then move into BCI Australia. Perfect. Okay. Thank you.