Good afternoon, everyone, and a warm welcome to this Capital Markets Day with Fortnox, the first one since its inception as a listed company. It is January the 15th, and we're live here in Carnegie Hall in Stockholm for this event. W ith us in the room today, we have Chairman of the Board, Olof Hallrup. We have CFO Roger Hartelius. We have Ulrica Törning, the head of communications, and Tommy Eklund, CEO of Fortnox. During this event, we will hear a description of the company, its history, and the roadmap the coming five years as presented earlier this morning. During this session, there will also be an opportunity to ask questions, and we'll take this towards the end of the session. Please provide your questions directly into the cast here, and we'll take them towards the end. With those words, Tommy, please go ahead. Thanks, Predrag. Great to be here and spend some time with all of you guys. Also thanks to Carnegie for hosting this event. I'm going to talk about briefly our history, and then I'm going to spend some time. We worked with the business plan now for almost a whole year, so I'm going to talk about bits and pieces from the business plan. Let's get started. Before we talk about the future, which of course, is the purpose of this presentation, I'm just going to set the scene and talk about the history. Even though that we are a great company in many ways, we are in a sense, quite the young company. We are 20 years old now. I've been at Fortnox now for a little more than a year. Of course, I'm a bit biased here, but it's an awesome company, I must say. When I joined Fortnox, I didn't know the people here. I must say that it's a unique organization. It's a unique bunch of people, really, really committed to all our customers, truly creative, and what a unique competence we have. Of course, I'm biased, but we are a really good company in many sense. With that said then, our history, 20 years ago, a bit struggling, a bit rocky in the beginning, the first few years, taking bookkeeping and accounting online, which was maybe a bit early 20 years ago. It was quite a struggle in the beginning. Of course now when we have established SaaS business model and a portfolio in the cloud, we are way ahead of the competition. Of course, it was a struggle, but we're also way ahead now. From the beginning, I would say that the accounting firms were quite important for our strategy. They have been the partners for us all along. You can also see that quite early we made partnerships with really big accounting firms. Back then, Fortnox was a really small player. That was quite an achievement, and I will talk more about the accounting firms later. Regarding number of customers, it took us 10 years to reach to 10,000 customers. Just to set that in a context, we added 10,000 customers during quarter three 2020. 10 more years to reach to 350,000 customers. I'm also going to talk about the customers going forward, but now we have about 350,000, and of course that's really an achievement in many ways. We don't guide regarding financial numbers. As you've probably seen, we have a scalable business model. With growth, we can increase margin, something that we have shown during the last year. These numbers we have not released quarter four yet, these numbers are from quarter three. We're closing up on 40% profit now. As you can see, the growth is a little over 30%. Stable business model, I would say. Although this is not a public number that we're guiding on, it's an important internal number for us that we're following up on a continuous basis. Most of you known this as the golden Rule of 40. If you add profit and growth, it should for successful SaaS companies, exceed 40%. For a couple of years now, we have exceeded 60%. This is a number that we're internally following so that we can trade profit towards growth. In the position where we are now, we think that we have a profit that is good enough. Going forward, if there's an opportunity to choose between increased profit and growth, we will choose growth. Not the public number that we guide on, but internally important number that we're following. Talk about the future. Where are we heading? We are going to double the number of customers. We think that by 2025, we will exceed 700,000 customers. We also have a plan to double the usage, which will also make the revenue per customer exceed SEK 300 by 2025. It took us 20 years to reach 350,000 customers, and now we're doing it in five years. It's quite an ambitious plan, but we think it's doable. You will see later on that much of our focus now is on usage, because we know that usage is driving our business. Our goal is, and our plans have, to double the usage. Again, that will turn into revenue. With that, we will have a revenue per month and per customer that exceeds SEK 300. For all of you, we have a straightforward business model, so it is quite easy for you all to translate these to financial numbers as well. If we achieve this, everything else will follow. This is the whole business. Before getting into our ecosystem and our portfolio, I'm just going to touch on some frequently asked questions from the investors. Are you going to increase the prices? That's probably the top question, I guess. Of course, with our way of doing business, where cost of delivery is close to zero, if you increase prices, that will ultimately turn into profit. That's pure profit if we can increase prices. With that, of course, I understand the importance of the question, but we don't have any price increases in the business plan. That's also because I don't want the organization to be driven by price increases. The organization should be driven by more customers and more usage, because that is what make us successful and our customers. With that said, of course, I know that our customers get a lot of value for their money. Somewhere down the line, it might be that we increase prices, but we shouldn't be driven by that. To be honest, when you have an established SaaS business model, it's quite easy to raise prices because you have the stickiness and it's not that easy to change platform. We don't need to do a formal business plan to increase prices. Before moving on, I'm just going to talk a little bit more about pricing and pricing structure so that you understand our pricing structure, so that you understand the strategy of it. We are, and we will probably be, the SEK 99 a month company because it's quite powerful. It's like $10 a month. For $10 a month, you can get, if you have a, I don't know, small carpenter company, you can get all the features that you get from an expensive ERP system. It's really affordable, it's easy to use, and no entrance cost or anything like that. It's instant use. It's quite powerful for $10 a month. That price is our price list, and that is per product, per user. We are reporting revenue per customer, and customer is a company. That is an organization. Our pricing structure is connected to products and users, but we are reporting revenue per organization. If we can add just one more product, we know that that will benefit the customer because the more products they use, the more successful they get. Again, with our scalable business model and way of doing business, the cost of delivery is close to zero. When they start to use one more product, the gross margin on that product is close to 100% gross margin. It's also per user. If we can guide our customers to add one more users, it's one more SEK 99. That's so much more important than to focus on the increase of the SEK 99. Then we also have transaction-based. We have a way of pricing what we do based on usage. For instance, send payslips or send invoices. Then we have packages, which is more a way for us to guide our customers to connect their needs so that they buy what they need, so to say. That's also where we do A/B testing to make sure that we're doing it in the best way to explain for the customers what they need. We will also introduce something that is called solution, which is more connected to a vertical. It's a new thing, and I will talk about that later in the presentation. That is what will take us to more than 300 in revenue per customer. Will you go outside Sweden? I've answered that question many times. I think what you will see and have seen is that we have quite a good business case in Sweden. That is my top priority to make sure that we're delivering on that business case, because we have so much more to do in Sweden. I don't want to miss out on that opportunity, so that is my top priority. With that said, of course, when I'm comfortable that we're delivering on that business case, we will look out for opportunities to go outside Sweden. Will you buy companies? Going back to the previous slide about outside Sweden. If we were to do something outside Sweden, I think it would be through acquisition. We already have quite a powerful tech base. What we will look for is probably a customer base in another region, if we were to do something outside Sweden. If we were to do some kind of acquisition in Sweden, the reason for that would probably be to broaden our offering. There are a lot of interesting tech companies in Sweden, really good ones. Many startups, and all of them are trying to establish a SaaS business model because it's a really good business model when you get things going, but it's really hard in the beginning because it takes time to get enough customers to get things going. It's a lot of companies there that lack customers and money, but they may have a really good product. We have money and customers, but we cannot develop everything on ourselves. It's a really good strategic fit there. If you look at all the partners that we have in this integration pool, it's a lot of interesting companies there where we can broaden our offer through acquisition. With that said, I think that in Sweden, there is an opportunity to both look for new verticals and also broaden our core offer, and also an opportunity to go for other regions if we're comfortable in Sweden. Yes, I think going forward that acquisition will be part of our growth. Our ecosystem. Customers and stakeholders. We did a rather big reorganization in July last year, and the purpose of that was to move the organization as close as possible to the important stakeholders and customers because we run a platform business and it's really important that you take care of all the users in a platform business. With size, it's more and more complicated because you tend to get layers between the people and the important stakeholders. With this reorganization, we're moving the people as close as possible to all the different important users in the platform to make sure that all the users get the value they need. I'm not going to talk about the organization that much because it's not that important in this forum. I'm going to mention a few words on each stakeholder and different groups that we're working towards. Our customers. We have two equally important distribution channels at Fortnox. One is our webpage, and one is the accounting firms. Either you come to our webpage and you enter there and you start to become a customer and it's no touch, no manual things, so you just enter and you start to use the software. You become a customer through the accounting firms. The good thing with this structure is that both these distribution channels are really scalable. Of course, we have an R&D cost to develop the webpage, and we have a key account structure to maintain the relationship with the accounting firms. There is no added cost per new customer. The cost of acquiring new customer is close to zero in both distribution channels. It's quite powerful in that sense. When you become a customer through our webpage, over time, you normally want some kind of accounting services. We connect that customer to the accounting firms that we're working with. We've seen that with that, user satisfaction and revenue per customer increases. That's a good working flow. That's a good way of going to the market and also increasing the user satisfaction. In the same way in the other direction is you become a customer through an accounting firms, and then over time you also want to use the Fortnox products. For instance, you want to send your receipts digitally through our app, or send invoices, or pay salary to yourself, for instance. Then you become a platform customer and a customer somewhere in between us and the accounting firms. Again, that is a really sweet spot because we can see that the customers are more satisfied with that. It doesn't matter where you come from, you end up in the same place, I would say. Accounting firms, as I said, from the start, they have been really important for us. They will be, I think, even more important going forward. This is a part of our strategy. We started with the bigger one. Now we have relationships with the big five and also if you go into, I think it's the 25 biggest accounting firms, they are all Fortnox customers. That's where we started with the bigger organization, then we have moved towards smaller and smaller accounting firms. What is happening in 2021 is, for starters, we're developing a whole new offering for the accounting firms. Later 2021, we'll release a new solution for the accounting firms. Something that we haven't done before, we will also use the experience and the knowledge we have about no-touch sales towards smaller companies. We will also use that experience towards the smaller accounting firms. In this definition, the small accounting firms are self-employed and we cannot meet them face-to-face as we do with the bigger accounting firms. We cannot have a key account structure to maintain one person accounting firms, but we can do it in a digital way, and we have that experience. With that approach, we think that we can go from our 6,000 accounting firms now and by 2025 be at 12,000. That's roughly half of the accounting firms in Sweden. Originally, our platform was developed for companies that are between, of course, rough numbers, five to nine employees. You needed some kind of financial competence or financial experience to take advantage of the platform. It was quite advanced from the beginning. What we have spent time on during the last two, three years is making it easier for smaller companies to also use the platform. You shouldn't need to have an experience in bookkeeping or financial or anything like that. What we're doing is doing a lot of automatization and machine learning and AI in the back, so the system is doing it for you. If you are a carpenter or a hairdresser or a farmer or something like that, it must be so much easier than if you are a CFO. We have had a lot of piloting and released a couple of products during 2020, but during 2021 will be the big delivery regarding that. If someone asks me after this year, "What's your sweet spot?" I would probably say under 10 employees. With that approach, we are now in a quite a good position because if we have started with the really big companies, we wouldn't have been able to take us to the really small ones. If we started with the small ones, we wouldn't be able to take on the bigger organizations. Now we know that it's a lot of bigger organizations that use the platform like Volvo and Apotea, and it's many, many big organizations that uses the platform. Normally, when you're buying an ERP system and you are 500 persons, you get some kind of training and configuration and consultancy services and a lot of things before you start to use an ERP system. It's quite unusual when you are 500 employees, you go online and start to use an ERP system without any guidance. That is happening at Fortnox. We are quite comfortable that the product is good enough. To really move into bigger organizations, we also need to deliver services one way or another. Maybe not from our organization, it could be others that are doing it, but with services, we think that we can take on bigger organizations as well. There are about 1.5 million businesses in Sweden right now, and with this approach, we think that most of them is addressable one way or another with the platform we have. Users. Users or usage is not part of our public information, so it's not something that we guide on or report on. It might be that we start to do that in the future, but now it's not a public number. What we're showing here is rough numbers because I just want to talk about what we're investing in and what direction we're going. If you look at our current user base, most of them are passive. What we are calling passive in this context is that maybe you get an invoice from a customer or Fortnox customer, and you are a consumer or you are a company, or you are an employee that get a payslip, for instance. You're not activated, you're not an active user in the platform. We have touch points on different users. With that, we roughly have about 2 million users currently. Doubling the number of our customers, we think that we will also doubling the number of users. You will see that most of our investments now are pointing to increased usage, to focus on using and activating more users. With that, we think that we, by 2025, half of our users will be monthly active users one way or another. That's 2 million active users by 2025. Software partners. Fortnox were quite early on regarding open APIs and building ecosystem. Of course, that has been successful, and we have now 400 integrated partners, and those are the one that is approved by us. It's thousands of companies that are doing software based on our APIs. It's kind of a huge ecosystem around our APIs. What we're doing going forward is also opening up even more. We are really good at developing tech things and products and stuff like that. If we were to give away more of what we have done, what we are good at to these software vendors, we think that they can bring more value to our customers. That is what we're doing now. We're opening up more of our backbone so that they can use our technology and to develop more features for our customers. With that, we are also opening up our sales channel so that they can sell to our customers. It's quite early, but we see this as a huge opportunity going forward. That was our ecosystem. Now we're going to talk about what we actually do. We have eight product areas and about 25 products for 2021 and a handful internal ones. Four core product areas which we see as important to our customers and big enough revenue, and the penetration is big enough. We are investing quite a lot in our core areas because they have shown that this is important both for us and our customers. We're investing quite a lot in three growth areas, which we think they're not penetrated now, and the revenue is quite small, but we see huge opportunity in these areas, that's why we're investing in them. We also do substantial investments in our own backbone for the ease of use for our customers and also to be more efficient internally. I'm just going to talk a few words on each product area. Accounting. This is where we started. Of course, this is our biggest area. This is our core area. It was quite a game-changer when it was possible to, in real-time in a platform, do cooperation regarding accounting and bookkeeping, and that was 20 years ago. It was quite a game-changer. Of course, we have developed so much since then. The aim has always been to attract as many users as possible and as many authorities and organization as possible. We have integrations with all the big banks now and IRS and other authorities. That is important for you when you do accounting. Going forward, we will still invest quite a lot in making sure that we always increase the number of integrated stakeholders and organizations and stuff like that because the bigger the ecosystem is around accounting, the more value the end user gets. What we are working on the most right now is our AI bookkeeping. It's something that we have had in pilot during 2020, and it will be released to all customers during 2021. I think that is the ultimate goal, that during this period, our goal is that it should be no manual bookkeeping at all. We will remove all manual steps. That's the goal with this product area. Of course, it's good that we're removing the administrative burden, and over time, of course, the way that we do it in an automatic way, it will be more accurate also because I think that doing it manually will introduce more errors. It will be in real-time, and it will be accurate, and we're removing the administrative burden. Of course, that's a good thing, but that doesn't give that much value to the companies. The real value is that what we can do based on that. Because if we have real-time AI bookkeeping, we can see in the future. We can predict the future. The more information we have and the more updated information we have, the longer we can see in the future and the better we can predict. Imagine how much insights and advice we can give to our companies when we can see in the future. This is the real benefit from having AI bookkeeping. Billing. This is an area where we're helping our customers. Maybe they're using our time and project product, or they're using our inventory product. When they're using our products, it should be really easy to bill for things that you have done. This product area is all about doing billing easy for our customers. This is also a product which introduce a lot of ecosystems because, of course, we have a good time and project product. It's also a product that you maybe need specific needs because it's not the same way to do time reporting when you are a carpenter compared to a lawyer, for instance. It's a lot of software vendors that are using our open APIs to offer specific products for certain things and then integrate that with our billing system. In this picture, it can be an ecosystem of many products from us, but also many products from others. As soon as you are in the Fortnox ecosystem, you always get payroll automatically done, automatically bookkeeping done and everything. It's quite easy for the end user, and they don't need to do anything. They can just pick and choose from App Store, "Okay, I want that time reporting system instead," and then everything works. The platform is quite capable, I would say. Now we're sending one invoice every other second. The amount that were invoiced during last year was actually SEK 500 billion. SEK 500 billion were invoiced in this product last year. That's almost 10% of the Swedish GDP. As I explained that we're moving our portfolio now in both direction, and this goes for many product areas as well. What we have done last year is now investing in making the product even easier for the smallest companies to do invoicing in the app. We're also investing to attract bigger organizations as well. We're expanding in both directions, and that is what we're doing in most of the product areas. With these SEK 500 billion that we're invoicing, one third of them is sent to consumers, and we haven't invested anything in that. Going forward, we will activate more users and capture that flow so that you can do more in the platform. You should not leave the platform. It should be easy to do payments and stuff inside the platform. That's also what the customers are asking for. It should be easier, and you should do more in the app and in the platform. The third product area, people. This product area is centered around the people in the organization. Like benefits, payslips, time reporting, travel, insurance, stuff like that. We're taking an approach now, which we haven't seen that many others are doing, that we're trying to deliver value directly to the employee. With the growth we have in this area now, we think that by 2025, we will have 1 million monthly payslips in the platform. That means that we're having interactions with 1 million employees every month. We think that we can build quite an interesting ecosystem around that and to deliver value to that employee, but also to a consumer, because you tend to be employee and consumer at the same time. We think that we and our partners can deliver value directly to the employee with this approach. This is also a product which is quite successful now. We have integrations, again, to all authorities. It's very easy to use. This is the product area that is growing the most right now. We see quite big opportunities here in the payroll area, and especially the focus that we have now, both on making sure it's easy to use for the companies, but also giving more value to the employees. Moving into next area. Oh, no. The people area is at the same time the area where we're growing also in both directions. We released Payroll Mini, as we call it, last year. That's when you're self-employed, so you can pay salary to yourself. It's quite easy. You can do it in the app. We're also investing quite a lot to attract bigger organizations. In the same way as we're doing with the other product areas, we're growing in both directions, so to say, to attract more customers. The expense product that we have, is maybe not the biggest product, but I always wanted to mention a few words on that because it's kind of interesting because it explains how we work with development and how we prioritize. Besides developing products on our own, we also do white labeling. You may have noticed that on this overall picture, the CRM product, it was grayed in that picture, and that means that we're fading out that product during 2021. That doesn't mean that CRM is not an interesting product for our customers. It's more like that product was not suitable and scalable on our customer base. Now you can buy it in the App Store instead. We also have an expense product through another partner, which is white labeled, and this CRM product was also white labeled, we hadn't done any investments on it. We're just trying out new products on our customer base to see if it's a success or not. It's a good way to minimize risk and try out new things. This expense product is one that we have tried now for a couple of years. Yeah, it's growing actually 50% per year now. When we looked at the product, we saw that based on the things that we already have done, we can develop that in-house. In August last year, we took the decision to develop a new product. In November, we piloted the new product, and December, we started to move customers over to the new product. From scratch, we have now delivered a product, and we in January now have taken decision to move all customers over to a new product in just six months. It's quite powerful. Financing. This is the area that we are investing the most in right now. Of course, because we see a huge opportunity here. What we have done now for the last two, three years is developing a whole new backend for our financial services. It's one of the biggest investments that we have done, and we have started to let our customers into the new platform right now, actually. What the platform can do that the old platform couldn't do is that it can scale because we want this business to scale now to most of our customers. It's scalable. We have removed all the manual steps because the old platform needed manual steps. Now everything is no touch, and it's also really flexible because that was the feedback that we got from our customers that when we're doing collection, because this area is about we're helping our customers to invoice, and then we're also helping them with collection. They didn't want us to collect in the same way for all their customers. If you are a carpenter and you're helping your neighbor with something, maybe you don't want us to send that person to court just because he's doing a late payment. With this new platform, they can pick and choose between, okay, customers of this type or this specific customer, so this type of invoice can be collected in different ways. It's a truly flexible and stable platform that we can scale the business with. With that, we in that platform have also started to do real-time credit rating on all our customers. Yeah, maybe that doesn't sound that impressive, we have so much information about our customers that we are doing to do manual checks now so that we can lower the credit risk and offer better services for our customers. Now we're doing that with AI. Based on all the data points we have, we're credit rating our customers and learning our systems what type of credit risks do we have. With real-time credit scoring, we can do things like express payout. When you're doing invoices, we can offer things on a specific invoice. We can say to you in real time in your app that based on this invoice and based on your credit rating, and if it's a Fortnox payment, we have the same information on the other side of the invoice, which lower our risks even more, and we can offer something better. We can say, "Okay, you will get 97% of the money now instantly, or we can collect the full amount in 30 days." That's quite a strong offer that we can do based on this platform. When we listen to our customers, they want to be able to do more inside the platform and more in the app. Money in, money out is quite important when you run a business. That is what our payment service is about. You shouldn't leave the platform for any reason. That's the purpose of our payment service, which will be released now in quarter one. We're adding more and more services to that. As I said, the purpose is to make it easier for our end users and to do all their payments in the platform. Then if you combine the real-time credit scoring with AI bookkeeping, we can also do things like we can see in the future that you now for 12 days will lack SEK 20,000. We can solve that for you. The cost is SEK 280. It's quite easy and a lot of customer value in that offering. Integration services, which includes the app market, is one of the growth areas. What the business is right now is that our customers can buy integrations from us to integrate the product that they have acquired from us to other vendors. That's the business as it is right now. What we are doing going forward, as I said, is releasing our sales channels to the software partners and also opening up more of our tech base. Of course, it's early stages, but we think it's a huge opportunity going forward. It's not that many marketplaces in Sweden that have gathered 350,000 companies and is growing by 60,000, 70,000 companies per year. We think it's an attractive marketplace going forward. We also believe in a shift here, in the same way as it happened in the media platforms. When I started to use Spotify, I don't know, 10 years ago or something like that, I instantly started to search for my favorite artist and my favorite songs to make sure that they were there, and I wanted to play them. Now I'm a passive user. Spotify is better at knowing what I like than I am myself. Like five years ago, our customers knew what they wanted in the platform. When they go into our webpage five years ago, they knew that they wanted bookkeeping or they needed billing. What is happening now with our marketplace is that we, with our data and all the information and customer knowledge we have, we can guide our customers on what they need for apps and services and products to be successful. They just need to know what type of business they run. Okay, you run a hairdresser with four employees in a mid-sized town south of Sweden. Oh, you need this and this and this. We think that this is a shift where we will help our customers so much more in helping them what they need to become more successful. With that shift, that is also where we're introducing solutions. What SaaS companies are really good at is delivering features quite affordable because we have a scalable business. What you need to do to achieve that is have a generic product that is used by many, because then you can spread your investments over many customers. To be able to do that, you also need to have quite a generic product. It's not doable otherwise. When you start a business, you can start to use different SaaS solutions and web services, and they are quite affordable, but it's quite hard to understand what type of services do you need, and how should it be integrated and configured, and is that suitable for me, or is it better for someone else? It's quite complicated for the businesses. What we will introduce during 2021 is a verticalization of our offering with our apps, services, and products, and products and apps from others, and making verticalization of our and their offers and delivering solutions, which includes both services, apps, and products for a specific industry. Again, all the early stages, we think it's a huge opportunity here and that we can deliver a lot of value. During 2021, we will deliver about three solutions, and then further on, we will add more and more solutions, vertical per vertical. The other growth product area is Insights, which includes Insights and our To-do product. To-do sounds kind of simple. To-do list. That is what is left of our product when we're doing everything in the back. When we're doing everything with AI automatically, the user don't need to do anything. That's what left of the user interface when we're doing everything in the back. It's quite an important product for us, this To-do list, because that's what left of the system. We're just highlighting things that maybe we need an approval or we're sending an insight or, I don't know, we're just informing that we have done things in the back. That is how we're kind of taking these more expensive workflow ERP systems from companies like SAP or something like that, and we bring them to the smaller companies. It's really affordable and easy to use, and you don't need any starting project or integrating or anything. It's just start to use. That is our way of taking a more complex system to the smaller companies. Regarding Insights, historically, we have been quite good at storing and capturing data about our customers and users and making sure that we're developing good products based on the knowledge that we get from that data. We have not been that good at sending Insights and sending that knowledge back to our customers. It's something that we will do going forward. Now we have a whole development team just working with Insights. Trying to figure out what type of Insights can we, in an easy way, present and give back to our end users, and what type of Insights would they benefit from? How can we make them more successful? If we're sending this information, will that help them to run their business? Again, this is a growth area, so it's early stages, but we see a huge opportunity going forward. Connect. This is an example where we're taking bits and pieces of the things that we have in the platform and making products of it. We can see that certain things in the platform will be quite important going forward. If you take this, what we're delivering here is Mailbox, Fortnox ID, and Storage. If you combine that with Connect and the App Store and the Insights and To-do list, it's quite a powerful platform. That is what you need to run a company. Based on that, then you can start to add the specific products you need. This is an easier way enter into the Fortnox world, so to say. Of course, it's also a way of being better at categorizing and capture a lot of data because more and more data are coming to the backbone, and we want a better way of handling that. With the Fortnox ID, our partners with consent can use that. When you are logged in with Fortnox ID, we will load all the information that we know about that person, contact information, role or company, and which companies they are connected to and stuff like that. With that structure, we can much easier do things like remove the importance of a person in an organization. For instance, if you're selling a company, then you want to give the company's specific information back to the person that is buying that company. Now we're connecting that information to the role instead of to the person. It's a really flexible way of giving the right persons access to the right information. If we're combining our new Mailbox, which will be released quarter one this year, with Storage, this is a very easy way of categorizing and doing interpretation of things that they're sending to you, like documents and signing them and doing AI-based things on all the things that you get to a company. Again, early stages, but it's kind of infrastructure components that we think will be more or less standard components when you run a company. Yeah. Internally, we have now for, I think it's three years, developed a new backbone for handling our own subscriptions and our customers. It's kind of an internal CRM system for all our customers. We have moved about 30% to the new platform. Rest will be moved during 2021. Besides giving a better user experience for our end customers regarding subscription management and help and all of that, we have also removed all the manual steps. Now it's no touch, and it's really scalable, so we can use that for the whole business plan now. It's quite a big investment, but it's important for us going forward. Last year, we also invested into two new data centers. It's not something that we have communicated that much, but we have started to move customers into the new data centers. All customers will be moved to the new data centers during quarter one. With that capability, we think that we can deliver on the whole business plan, so we don't need to do more investments regarding data centers. Just some funny things regarding this. We had over 2 million views in our help during 2020. All those kind of things are really important for us to be able to scale and to deliver value with no-touch. We also had close to 200,000 no-touch orders last year in our backbone. What's next? If 2020 was a year of development, I would say that 2021 is a year of delivery. Yeah, I mentioned a few things, but as you've seen, we will deliver AI-driven bookkeeping to all our customers, distribution via app market, the Fortnox payments will be released during quarter one. We're planning on recruiting about 200 people this year. Yeah, quite a big year we're looking forward to. To wrap things up, we're moving into a position now where we're taking more responsibility for what we do. We understand what type of place we have in society. With that, our vision is to enable prosperous society shaped by thriving businesses. We believe there is a strong connection between successful companies and really good societies, and that is what driving us. Just a funny anecdote that if you look at Swedish best growth companies, top 100, 68% of them is Fortnox customers. With that, thank you for listening, and over to Predrag. Thank you very much, Tommy. Very encouraging presentation, very bright future it seems like. We'll now open up the Q&A, and you can type your questions again directly in the webcast, and we will receive them here and ask them. I see one question that has popped up which I can take right away is this, there will be a recording of this webcast and the presentation material will also be available after this webcast. Let's start a bit on your targets. Over 700,000 customers, will this be an organic intake only? You mentioned M&A, or is it a combination of these? Yes. These 700,000 are only in Sweden. If we were to do something outside Sweden, that is outside of these 700,000, and we don't plan to acquire a customer base in Sweden. That's organic, and it's in Sweden. Again, also on the M&A side of things, you mentioned you can't develop everything yourself, you can add a product that you then scale on your customer base. Do you intend to acquire companies which have revenue? Is it very low revenues? Will the acquisitions impact your top line, so to speak, as well? I think we can do both actually, but as I said, in Sweden, we're mainly looking for It could be that we're introducing a new vertical if we think it synergies on our customer base. Other than that, I think we will look for technology. Of course, it might be that we're acquiring revenue but the focus will be acquiring tech that can scale on our customer base. All right. Could you give us a rough idea of the 2025 split between your segments, thinking of the core products, the finance vertical, and also insurance which you report today? What is your idea to say finance is 14% roughly, give or take, rolling 12 months? We don't guide exactly on that, and insurance is too early stages to even mention in that context, I would say. I can say that the way that we're investing in the finance vertical now, we think that that will grow more than the core business. It will be higher, percentage-wise than it is today. All right. Based on what you've presented here today, it seems your competitors are quite way off currently with your product suite. Obviously, some will be losers here. In terms of competition and what can the other market participants do, what are you afraid of, so to speak, of other actors in the market? We try to not focus that much about the competition, and we're trying to deliver value to our customers and to attract more customers. I think that's what we will do. All right. Let's take a couple of questions here from the floor. The first one is from Emil Correa then on SEB. How will you transform, for example, a B2C customer into an active user? Again, that's a long-term ambition, but since we are releasing the payment services, for instance, that payment services is focused on companies now, but it's not that different to do payments when you are a consumer. That could be one way that we also have a consumer entrance to our payment services. Another question here, again, from Emil. In the annual report 2019, you were saying that you had 50% of the accounting firms in Sweden as users, now 25%. What is the difference due to? I think it was two different things. The first thing was the number of accountants, and what I showed was the number of accounting firms. Let's continue. There's many questions coming in. I'm just going to read them out loud. Take us through where your additional 350,000 plus new customers will come from, offline, on-prem, other cloud providers, respectively. I think it's a combination of both. It's the same way as we're attracting customers now. We are quite good at newly started companies, but we also get quite good at the companies that wants to move away from an on-prem solution, and they normally go to us. I think it's a combination of those. All right. Another one here. Will you please translate your new goals into a medium-term perspective growth? Also could you add a margin target to this as well? We will not communicate margins. Again, I think for you guys, I think it's quite easy for you to translate these numbers to margins, so that's not a problem. Regarding number of customers and revenue per customer, we don't have a plan that we have a typical hockey stick or anything like that. We're trying to do growth pretty much in a stable way. How much changes needs to be done to the platform in order to launch in a country or a new country? It's hard to say because it depends on the country. I think you shouldn't look at it like it's one way or another. It can be that we're taking bits and pieces from the platform to other countries because parts of our products are more generic in the region-specific things than others. For instance, I can take, I don't know, invoicing is more international than payroll, for instance. It might be that we're introducing certain products, not the whole platform. All right. On the AI bookkeeping, how accurate is that today? I think it's not a public number, but I think the last number I saw was 86%. It's 100% accurate, but we're doing 86% AI-based now. Okay. On the App Store and the marketplace that you're now scaling, is this also included in your financial target in terms of the revenue per customer? Could you also explain a bit more how the revenue-sharing model works here? Once more. Yeah. Okay. The revenue share model, we have not introduced it yet, but I think with the value that delivering, you can probably look at the other app stores which is roughly 30%. I think that is what we were reaching for, but we haven't released it yet. We think that's the ballpark number. What was the first question? The second part is in the ARPC that you communicate about SEK 300, is there an assumption of the marketplace? I think- in there today? to do five-year plans on a software company is hard when you go into details. I think you should look at it like the main portion of the things that we have put in the Business Plus is driven by the core product areas. To reach above 700,000 customers in 2025, you will need to increase the average yearly net customer intake from the current level. How do you manage to increase the net customer intake or accelerate it? I think, as I said, we're working with both the distribution channels. We have created a whole business area focusing just on the accounting firms and how we can support them growing in numbers, but also how we can support them to add more customers into the platform. We're also having a new business area only focusing on our own distribution channels. I think both channels, the way that we're investing in them, can be better than what they are today. A few years ago, you mentioned an addressable market of roughly 800,000 companies. Now you're talking about 1.5 million. How do you define a company or someone that you can target? Yeah, we can probably get back to that, but we're using official numbers now. Regarding active organizations in Sweden, it's about 1.2 million, 1.3 million right now. We also have about 400,000 companies that are not registered, or organizations that are not registered. We have about 10% of them as customers. That is how we come up with 1.6 million that, but we're communicating 1.5 million. In terms of COVID, how has COVID-19 affected your SME client base in Sweden, directly and indirectly? We haven't seen any verified churn so far. What we have seen is the number of invoices sent in society as a whole is not on the level that we are used to. Some of our revenue is connected to the number of invoices sent. That's it. The transactional revenue is connected to that, so we have seen a small effect on that revenue. That is the only effect that we have seen so far. Okay. Who are your main competitors outside of Sweden? Are there any similar companies to Fortnox in the Nordic region? I don't know. How will you monetize the value add that Insights bring? I think you should look at all these three growth product areas, that it's too early to exactly decide how we are going to earn money on it. Exactly how that is going to happen, I don't know. I think that you understand how much value we can do with that, and how we price that. I think it's quite easy with our currently quite low prices. It's quite easy to add value and then price that in a good way going forward. A question on the move to the main market, do you have any time plan for this? No, it's early stages, but as soon as possible, I guess. Will you sell real-time credit ratings directly? How is the monetization behind this going to look? We're using the data that we have about our customers to lower our credit risk, till we can offer something better. I'm not going to sell the information. We're using it to have a better offer to our customers. That's the purpose of it. Over time, one can assume that this will be a sizable chunk on your balance sheet. How is your thinking here going forward? Will you do this on your balance sheet yourself, or will you take in a partner for this? We haven't decided on that, but with the interest rates that we have, we don't see it. Earlier, we lended from a bank, and now we're using our own money, but I think we can finance it in different ways. It's not that important to us, I think. In terms of COVID, has there been any change in your operation? I mean, in terms of the staff base, developers, sales, et cetera. No, but everyone is working from home, so that's a change. No other changes. In terms of penetration in general for cloud-based services, do you have any estimation on where are we in Sweden today, and do you have a vision of where we will reach and when? I think it's quite hard to predict, I think, and to do things like that, but I hope with our offering that we will attract more and more customers. Earlier, maybe you use an Excel sheet, but now it's with our pricing, and our product is so easy to use. It's easier to use our product instead. I think with the offering that we have, we're attracting more and more customers through cloud. What are the key hiring areas for the 200 new people you're going to hire? Mostly on the tech side. Can you comment on the marketing expenses required to capture more clients? As I explained, both our distribution channels are quite scalable, and we don't spend that much marketing. I think that going forward, we'll probably spend some more money percent-wise because we're getting quite big, and we need to invest even more in our brand in general. We don't need to invest that much to capture new customers. It's more like general branding investment, I think. Who is your most aggressive competitor in Sweden? In terms of products and solutions worldwide, who is the most similar platform? Again, we don't focus that much about competitors, so yeah. I think I leave that question. There's a lot of questions on the competitors. Do you also buy any external credit data, or do you rely only on your own data? For now, we have a combination for now, but I guess going forward and the way that we're doing it, we'll do it only on our own data. Okay. For the financing part, is there any new regulation that you need to comply to in terms of banking license or something like that? Not for now. The things that we're planning for now, we have all the regulations we need. Will the new offering towards accounting firms be modified differently than what it's like there? I think so, that it will be more focused on their needs. Again, it's early stages because it will be released later this year. I don't want to reveal all the details. It will be more focused on their workflow and their businesses than what we have done before. What markets would Fortnox be interested in when expanding initially outside of Sweden? Which countries would you prefer then? If we were to do something, it would be through acquisitions. The specific company, I think, is more important than the specific country asset. The specific target is more important than the region because it has to work with that company that we're investigating. That is more important. When it comes to activating users, so if I am a consultant, what steps do you take to make me use more than just one module, in practical terms? Regarding the accounting firms, we have people that are helping. There we have a manual support to activate users. The companies, we are more digital-driven, so they are activated internally inside the product, so that based on your usage and your needs, maybe you should try out this product. That is digital-driven, and the accounting firms for now, it's mainly driven by manual steps. In terms of cash, do you need extra cash to fulfill your 2025 objective, like a capital increase? We'll see. It depends, of course, on the acquisition and the finance vertical. Because both those areas need money, but we also have money. It's not an obvious answer on that. In terms of the financing vertical in general, how is this different compared to what your current customers today buy from some of your competitors, I don't know, like Swedbank or someone? How is the process different? I think it's more technology-driven, and it's app-driven. I don't think that our customers feel like they're using a bank or they're using a factory serving. When you're pressing Express Payout, you don't feel like a factoring customer or you're lending money. I think that's the big difference, that it's very much integrated in our products, and it's so much more customer value in that, so. I know it's early days, but do you have an idea in terms of credit losses for this product? How has that affected Fortnox currently? If we look at our list prices regarding interest rate are about 2.5% now, but that's per month, so that's 30% annually, and the credit losses are about 2.5% now. Those are the rough numbers that we're working on now, and with the new offering and the new way that we're using data, of course, both those numbers can be improved. We can offer even lower interest rates, and we can lower our risk. On the integration service, how many of your customers use it today? We don't communicate penetration of specific products, but it's not that big revenue-wise, but it's quite a lot of partners that do integrations. Revenue-wise, it's not that big. Okay. Are there any specific modules, key modules you see that will drive the ARPC up to SEK 300+? No, I think it's not a product that should do it. I think you should look at the whole portfolio and see that it's the whole portfolio that will drive that. What are the biggest hurdles or headwinds to achieve your goals of doubling customers and usage? I think that the opportunity is definitely there. It's us who decides if we achieve it. Again, you should always realize that we have quite rapid growth. As I said, we're looking for 200 new people now. We are 400 people now, of course, growing in that pace is always a challenge. I think that is the biggest challenge that we have. Would you consider to have some more debt in the balance sheet if needed? Would you go to the equity market only in that case? Again, we haven't planned for that. In the last two to three years, how much money have you invested in the new financing platform if we accumulate all that? We don't communicate those numbers regarding investments. As I said, right now, the biggest R&D investments are in the financing product area. This year. Is there any incentive program linked to the new financial targets? Yes. The management team is linked to the business plan, and most of the people in the management team, they have options or stocks. Okay. An investor here asked for a clarification. In the future, can a consumer do a payment directly on your website or on your system? If so, will this compete with Klarna's solution? We'll see. To answer the first question, yes, that's in our plans that you, as a consumer, can pay an invoice that is sent through Fortnox platform. We are running out of time a bit, let's take one final one and then see if there's any closing remarks. How do you make sure new recruits are quickly integrated into Fortnox culture and the way of working, given you are recruiting at a little bit higher pace now than before? I think we have taken that steps now. We have about 100 new people both 2019 and 2020. To add one more 100 to that, I think it's achievable. I think we have grown into that pace now for a couple of years. We are quite good at introducing new people into the organization. Very nice. Thank you very much. Tommy, do you have any closing remarks before we close this call here? I think we're done now. I appreciate that you listened. Fantastic. Thank you very much for being here. Thank you to the audience for joining us here for this event today. Thank you.