I think it's getting time to get started. Magnus and Jonas, you are with me, right? Good. So, a warm welcome to Modelon's investor presentation for the second quarter and first half year, 2023. Without further ado, I would like to hand over to the CEO, Magnus Gäfvert, and the CFO, Jonas Eborn. Please, go ahead. Thank you, Jenny, for that introduction, and welcome everyone, again, to this presentation of the interim report for the second quarter for, for Modelon. My name is Magnus Gäfvert. I'm the CEO and one of the co-founders of the company, and I have with me here today, sitting in the next room, my colleague, Jonas Eborn, CFO, and also one of the co-founders. Hello, and welcome everyone. After introducing the bullet highlights of the quarter, I'll do a quick overview of the company before moving into the business highlights of the second quarter, then I'll hand over to Jonas, who will provide you with a financial update for the period. After that, we'll head into a Q&A session. I believe that you are all welcome to provide questions during the presentation using the Q&A chat. Bullet highlights of the quarter is that we are pleased to report a solid software revenue growth amounting to 36% in the second quarter. Driven largely by a significant paid-up upsell win to a customer in India in the automotive space. We're also seeing a good improvement of our EBIT with SEK 4.7 million increase compared to the second quarter 2022. This improvement is driven by revenue growth. We're also pleased to announce that in the quarter, we released a major, new major version of our flagship product, Modelon Impact, version 2023.2, shipped to customers in June, or provided to customers in June. We're also announcing in this quarter new reseller partners in Asia, Toyota Tsusho Systems in Japan and Taesung S&E in Korea, distributors for Modelon Impact. With that, a quick overview of Modelon. We are a business-to-business software company in the system simulation sector, and that means we're helping technology companies around the world and in various industries, to digitize engineering workflows related to the innovation, development, and operation of high technology products and systems, which can be anything from a car to an aircraft or a power plant, in parts or in whole. In digitizing such workflows, you need to have at hand, a digital representation of your product, or a digital model that can reproduce and predict the behavior and performance of this product and the engineering designs in the digital world before it exists or is built in the real world. This is precisely what we provide, software tools to create such models and to use them for these purposes. This brings tremendous benefits to our clients. It means that they can develop their products faster, cheaper, and arriving at a better performance in the end. Our flagship product, Modelon Impact, is pioneering the simulation industry, being the first cloud SaaS platform for system simulation. It is based on proven and high-threshold technology that we have been developing and supplying to industry customers for more than 15 years before Modelon Impact was released in the third quarter of 2020. We are investing in our business, in the product, to grow an annual recurring revenue business based on this platform. We are pleased to see that since the launch of this Modelon Impact, we have had a consistent growth of our rolling 12 software revenues and also annual recurring revenues. Although we have a slight deviation in this quarter, which I will explain in the next slide. We are, for our size, a highly internationalized company. We are around 100 people, distributed over 10 offices in Europe, North America, and Asia. That means that we have presence in the key markets, key market regions that we're operating in and are able to support and meet our customers closely, which is very important for our success. It also means that we have almost all our business outside Sweden, and where me and Jonas sit in our headquarters in Lund. This, in combination with the very strong simulation and analysis markets globally, which is also consistently growing at a good pace means that we are setting out ambitious goals for the company to arrive at and achieve an ARR growth of 35% in the medium term, to turn cash flow positive in the short term, and to reach and exceed EBIT margins of 20% in the long term. With that, let's move into some specifics of the second quarter. Again, pleased to report good software revenues in the second quarter, amounting to SEK 14.3 million, which is a 36% increase versus the same quarter last year. It's driven by a significant upsell, as I said in the introduction, with an automotive customer in India. The background here is that this is a customer that has been using our multi-platform product line for many years, and a customer that we have a close relation with. They are, as many companies in the automotive industry, going through changes related to the electrification of the industry. They're shifting from combustion to electric vehicles, and that has opened up opportunities, creating new opportunities for us to grow our install base with this customer, which is what's realized in the second quarter. This, this transaction is not a recurring license to the largest part, and the reason for that is also that the recurring business models are not as mature in that region or widely accepted in that region yet. The ARR growth in the second quarter amounted to 8% compared to same quarter last year. We are seeing a slight decrease of the ARR in the second quarter compared to the first quarter, and this is again explained by a single customer in the automotive industry. Another customer that is subject to the electrification changes, they have been using also our multi-platform product line for development of air conditioning systems. It's a Tier 1 supplier for conventional cars, and now changes means that we are reducing our footprint with this customer. This has been expected for some time. We are in close contact also with this customer. Changes in that industry are sometimes to our favor and sometimes not. We're also seeing a bit of a slowdown. The Modelon Impact ARR amounts to 27% in the second quarter versus last year. It's temporarily slowed down because we are currently doing a planned strategic transition from on-premises installation as the main delivery model towards a managed cloud service. During this change, it means that the necessary customer interactions to close deals are increased, which extends the sales cycle. As an effect, we see a slowdown of the ARR growth for Modelon Impact in the second quarter. We are doing this change, of course, to, to, to improve our growth and scalability. We are confident that when this change is completed, we will have shorter sales cycles and a more streamlined delivery model and product, giving a great experience for our customers. It's a temporary effect. Next slide is more details on the activity in the quarter. Start by introducing again our target industries, energy, process, industrial equipment, automotive, and aerospace, and also exemplifying with some of our existing customers in these sectors to show how we're working with leading and global innovation-driven technology companies, the most successful and the most demanding companies out there, really. I'm sure you recognize all the brands here as very well-renowned and great companies, and we are very, very proud to work with such fine companies that they trust us with our solutions. In the quarter, we have won a number of new customers of this similar character. In the energy sector, we have in the U.S., an innovator in carbon-free energy systems for maritime transportation, and this is a very interesting and exciting customer. They are developing technology based on ammonia as a energy carrier. That's very clever because ammonia has a high energy density. It, it, it, it's widely available in a sustainable, renewable form. There is already a fair amount of infrastructure in the world related to ammonia. It's particularly suited for maritime transportation, where also there are large needs for improvements of the carbon footprint. As some of you may recall from school, ammonia includes a fair amount of hydrogen. Basically, what you do is you reform the ammonia, take the hydrogen, and feed into a fuel cell. Create electrical energy from that. It's very clever, it's extremely interesting, and we're much enjoying to contribute to such exciting developments. We also have a European provider of, sustainable waste-to-energy solutions that's basically incineration of waste and recovering the heat, use that either to distribute to consumers directly or to create pressurized steam feed into turbo generators or to produce electrical energy. So this is a type of, thermal system that we have been working with for a long time, and we are, we have very mature solutions to, to support development of, of those. In the industrial equipment, we have a European provider of, indoor climate systems, and that's, well, simply put, it's, smart ventilation and shading systems. We have a U.S. water heater manufacturer that are doing tankless water heaters for commercial use, and the benefit of that is that you reduce or even eliminate the heat losses from, from the stored heated water. We have a Japanese factory logistics and automation system provider. They're doing large-scale cranes and control of such cranes, using Modelon Impact. We have a Japanese provider of store refrigeration products that's basically the refrigerated displays or showcases that you see in supermarkets, and to improve them, optimize them for energy consumption and function. In the automotive space, we have a European automotive thermal systems consultancy that's an expert company in the thermal comfort in electrical vehicles, and optimize that with also taking into account, of course, fuel, energy consumption and range. Last listed here is the Indian automotive company with a large upsell I told about in the previous slide. Notably also, all the new Modelon Impact customers in the second quarter have onboarded with a managed service option, which also is a receipt of the progress we're doing in this ongoing transition. Overall, we see the developments in our pipelines to be healthy, activity healthy across both regions and the industry sectors. We're seeing actually an increased lead generation from our marketing activities, which is, of course, great. I understand that there are macro effects out there, driven by the geopolitical situations and macroeconomic. We're seeing some of that, of course, but not at a level that raises concerns really. I know there are many other companies, that's, that's, suffers more from this. I think a key background here is that the solutions that we provide to our customers, they are not of a nice-to-have character. It's not a sort of convenience software, it's, it's a need-to-have. Our customers need these solutions in order to be successful and competitive. I can relate that a bit to, to, to this larger trends in the simulation industry that's also driving the growth of the total market. First, it's that of digitalization of the engineering work, and for many companies and several sectors, that journey has just started. It's necessary, it's necessary to adopt these methods, to harvest from the benefits of working in the digital domain to be competitive. It's a must-have. The digital models are at the center of many of these workflows. Of course, then we provide something that's necessary. We have the clean technology aspect. All industries are subject to enormous pressures to improve their products and systems to become more sustainable and clean. The innovation pace needed there is it's simply impossible to keep up with unless you work extensively with the digital methods and simulations of the type that we provide. We are, as also exemplified, I believe, on the pre- previous slide, we are very happy that the majority of our customers are doing very important work in this respect using our tools. We have the SaaS cloud aspect, the need to move the engineering work, also the simulation work, to the cloud. Not the least because of the need to collaborate across team distributed, something development accelerated by the pandemic. Of course, it's a very good position to be pioneering our industry with a solution on the cloud. This is exemplified by a customer story, great customer story that we published in the quarter, and this is again, a U.S. company, innovator Aircela, and they have a very interesting solution. They are revolutionizing the liquid fuel production, liquid fuel production, basically for combustion engines to do carbon neutral fuel. They are basing this on the very interesting idea that you something called direct air capture, and that means that you're picking the carbon dioxide from the air, from the atmosphere, and you take the carbon in out of that and combine it with hydrogen that comes from green hydrogen, renewable green hydrogen to synthesize combustion fuel. They are developing solutions that are small scale, so that basically, you, you can have your own production unit at home to and then fill up your car with this. This is a bit of a different route compared to electrification, traditional electrification, to actually use a carbon-based fuel as energy carrier, which comes with also many benefits. Aircela are testifying. Well, they're actually using Modelon Impact to capture chemistry and physics of their system, which means they can test, come up and test new concepts without building them, thereby saving a lot of time and cost. They are testifying how the tools that we provide and the models, they unlock development paths that would otherwise be impossible to achieve. That's, again, speaking to the necessity of a need to have of the type of solutions that we provide. A great customer story from a very, very interesting company. Again, Modelon Impact, fundamentally high level. It's a platform where you can create digital models of different industrial systems and then use these models in the workflows throughout the product life cycle, from innovation through development, testing, and operation of these systems. We deliver this functionality then on the cloud, providing all the benefits that comes with that. As I said, in the quarter, we released a new major version in June, and it includes substantial new features related quite much to benefit on the advantages of the cloud delivery. Meaning parallel execution of experiments, sharing of information and workspaces, and connectivity with other platforms. We're also seeing significant improvements in our industry application, the built-in industry application support, including hydrogen systems, fuel cells, HVAC & R. Tell some more about that. It's heating, ventilation, air conditioning, and refrigeration. Microgrids, thermal power plants, and carbon capture. We're also doing quite substantial updates, upgrades in the cloud, backend improvement to support future robust scaling on a, of a managed service. Again, this release and developments are much related to this ongoing transition also, where we're making the managed cloud the leading and main delivery model compared to the on-premises that we have been prioritizing previously. The new partners in Asia to distribute Modelon Impact in that region. We have Toyota Tsusho Systems, that is the main IT provider within the Toyota Group, and they will distribute Modelon Impact in Japan, and of course, with a particular network within with the Toyota Group companies. We have Taesung S&E. It's the leading CAE firm in Korea, providing one-stop simulation solutions to virtually all industries, including software consulting and training. Both of these partnerships are non-exclusive, and we are thrilled about the broadening of our markets, contact surface in the region are based on their networks and their recognition and brands. Very fine companies. We are currently working actively with onboarding activities such as training of their staff, and also started to arrange customer-facing activities, webinars, seminars, et cetera, to start building pipelines. It's early days, but we're already seeing leads coming in from these new channels, and also we have had the first customer win already. Expectations are still that it does take time to ramp up, onboard and ramp up a new partner of these types. Expecting six to 12 months before we really see activity at the level we expect. From that, I'll conclude with this slide, which is another customer testimonial. This is interesting. HVAC&R, the heating, ventilation, air conditioning, and refrigeration. This is a sector, this is technology that is responsible for a fairly large amount of the carbon dioxide emissions in the world, which means that it's a sector with enormous potential for improvements, improved technologies, and also subject to stronger regulations, and so on. All this creates big needs here, we see good activity in this sector, and we're very well positioned to address that. This is also what we exemplify with, well, demonstrate with this customer testimonial. Mitsubishi Electric is a huge multinational electronics, electrical equipment manufacturing company, and they have several major product, product lines ranging from nuclear power plants, I believe, to other things. In this case, it's about HVAC systems, commercial and domestic, which is where they are one of the leading provider globally. They have been using our solutions in their product research and development work for many years, and testify how satisfied they are with that and with our support. Of course, in addressing, focusing on this sector, it's great to have the experience and maturity of our solutions that comes from many years of engagement and also the name of such a strong and good brand as Mitsubishi Electric standing, standing behind that. A very fine testimonial. With that, I hand over to Jonas for the next part. Thanks, Magnus. Can you flip forward to the first slide? With the ARR, yes. As usual, I'll provide some brief financial highlights, some of the more details in the financials. ARR, I should say that this is reported at constant currency, which is very important. We're showing the real volume graph growth by adjusting the historical data for the foreign exchange effects. All of the ARR is counted at the current period's foreign exchange rates. We see that growing to SEK 46.1 million, an annual growth of 8%, although there is a slight decrease of 2% versus the previous quarter. As Magnus already mentioned, this is a multi-platform deal where an automotive customer, in their annual renewal, has reduced their number of licenses a little bit, but significant, so that we see it here. This is the sort of legacy software that we're selling, libraries, so it's not on the Impact platform. On Impact, we do see increase of 27% annually. This is a little bit lower than the previous rates that we've seen at the end of last year, this is explained by the transition period, as Magnus explained. We're in this period now, shifting to the managed cloud service as a delivery model, during that period, we do see sort of extended sales cycles, which is the reason for the slightly lower annual growth. It's still the main driver of the total software ARR growth. That's important to focus on here. We can shift to the next slide with the revenues, where we see SEK 21.1 million in the second quarter, which is an increase by 40%, which we're very pleased with. We're now see sort of the shift in the trend from the low point, roughly mid last year. So we're through this transition that we've done from the services that we had with a major collaboration, co-development customer, which is now completely in the historical numbers before this period. The increase of 40% is partly explained by the low comparison number in the second quarter of 2022, but mainly by the good growth in both software revenue and service revenue at the same time. We have 36% growth of software revenues. This was a paid-up license win in India, as Magnus explained. In the service revenues, so engineering services, the consulting that we deliver to our customers, we're now seeing the effects of our good pipeline. We can start to deliver on those projects and get a good growth also of the service business, which is important. Most of these projects are sort of in using a Modelon Impact and also promoting sales to new customers. We have our service engineers engaging and supporting the new sales of Modelon Impact. Development costs is decreasing by 12% in the quarter. Important to recognize here that all the development costs are taken as operating expenses, so they are, of course, a main contributor to the EBIT, which was almost the same as the development cost, SEK -12.8 for the quarter. This is the reason. The decrease is in the quarter here due to slow recruitment for some of the open positions. We don't expect a decrease to continue, where long-term or sort of midterm, expecting our development costs to grow slowly, slower than the revenue growth and sales growth, of course. This year, around the same or slightly above, sort of with inflation taken into account as 2022. With that, we can move to the third slide here, where the expenses a little bit more detail further. We see the operating expenses growing by 4% compared to last year. This is largely personnel costs. Of course, we're a very personnel-intensive company. The 7% growth there is mainly from the annual salary revision, which we see at typical market levels. We're a global company, we have engineers in all the continents almost. This year we have seen inflation also in all our regions where we are active and have offices. The cash is now at SEK 90 million at the end of the second quarter, which shows that we're still investing, so we have a sort of a negative cash flow over the period. I remind everyone that we financially have a target to be cash flow positive in the short term, meaning in one to three years. The cash flow in the second quarter is SEK -19.8 million, while year- to- date, it's SEK -21.6 million. We see sort of timing effects here in the cash flow. We had a very good, sort of historically cash flow in the first quarter, and now it's turning back. We have in the sort of half-year numbers, roughly where we expect it to be, SEK -21.6 million. Timing effects, for example, could be the. As an example, we can take this India deal. As an paid-up deal, this is invoiced in the second quarter when we deliver. That's taken as revenue also, into the major part, in the second quarter, while, of course, the payment is coming later. The due payment due for that business is in the third quarter. That's one effect. We also see a little bit of macroeconomic effects with somewhat slower customer payments. Nothing alarming. There are no indications of bad debt. We have all overall very stable customers, very large customers. They always pay, but sometimes it takes a little bit longer. We do attribute that to sort of the general economic climate in the world. That was all that I intended to say, Magnus, so you can continue and wrap up. Yes. With that, I hand the word back to Jenny for the Q&A. Yeah, thank you, Magnus. Yeah, during the Q&A session, you can raise your hand, and we will put you live. We are going to start with our both analyst, and we are going to start with Stefan Wård from Pareto. While we are getting you unmuted and online, I'm actually gonna throw a question to you, Magnus. It's high activity in the APAC region, in Asia. We have the big win, and we also have two new business partners. Maybe just for you to elaborate a little bit on, you know, business model, how will it affect, what can we expect, you know, from that region going forward? Stefan, you're going to be unmuted now, so please go ahead, Magnus. Yeah, thank you, Jenny. Good question. Yes, there are, in the quarter, several news or related to the Asia region. I would say that the partners and the win in India, they are unrelated. The win in India with that customer, it's an effect really about a long-term relation that we have had with a enterprise customer. This one is in India. It could just as well have been in Europe or in North America. These kind of opportunities that we can identify and exploit because of our long-term relations. The new partners are important in that particularly for the Asia region, we rely more on resellers and indirect sales channel. We believe that's an important part of our go-to-market strategy for that region. Of course, then it's also important to invest and build up the channel for, to support and drive the future growth of our business in that region. With Modelon Impact, we have the first couple of years after the release, we focused more on the regions where we have direct relations with our customers, that is Europe and North America. We're now in a position where we feel that we're ready to start to say, unleash the indirect channels, and then it's important to find these kind of good partners to work with. I could mention that, of these two new partners also, the Toyota partner has also, is also a, a company that we've had, had a long relation with. They have also been distributing our, our, multi-platform product line. The news here is that they are adopting Modelon Impact, and they, they're very enthusiast about the cloud and the possibilities there. They, they are, they are thrilled and very active in, in, in their engagements. Thank you, Magnus and Stefan Wård, you are now unmuted, so if you unmute, please go ahead with your questions. Yes, thank you, and thank you for interesting presentation. I have a couple of questions. The first one relates to when we can see an acceleration in the ARR growth back to, to the trend that you have as a target. The second is relating to, to cash flow generation and the seasonality in, in cash flow generation. If you look on what you have generated during the first half, what to expect for the second half, and if, if, Jonas Eborn perhaps could be a little bit more specific in when we can see a cash flow break even within this one to three-year timeframe. Then I have a, sort of a business case-related question that I can, can take after, after these two, if you can help. Yes. So what order? I think the first part is probably for me. Please, very quickly rephrase the question for me. It was- the, the way I read it, you're not really on, on your target- Yeah. Okay. ... growth in ARR, when, when we can expect that to, to materialize, and. Yeah. Yeah. We believe that the transition we're currently doing is a very important step to arrive at the target levels of the ARR growth. This is a transition that we, we started to guide forward or, or in, in, I think, in the third quarter last year. We were preparing for that, for that. We saw the timing is right now to take this step, and it's a step that's. It, it, it takes a bit of time, and we're probably sort of peaking that transition around the second quarter. We expect that it's, it's not a sort of on/off thing. It's a gradual change that we expect will, will go on also throughout the second half of this year and possibly into next year. With the effects, being, being, sort of less and less. And, and this is, this transition, again, as, as we explained here, we, we do see that this is slowing down because of the increased lead times and the increased customer engagement, the sort of high, high, high touch leads to, to close during the transition. We, we, we're getting out of that within this timeframe, and that takes us back to, I would say, the previous growth trend towards the target levels. I can continue with the question around cash and cash flow. Of course, these are related, so the ARR growth, that contributes to the cash flow. When we see a higher growth, we will also see more cash coming in. Relating it to our financial target, the short-term cash flow positive, that's defined as a one to three year period. I would say it's more in the nearer half of that period, so sort of one to two years perspective that we see cash flow positive in our sort of plans and what we're executing on. Of course, it's also important that we're continuously analyzing our different perspectives and sort of making plans for what if, so that we have a good financing going forward. Right now, the plan we're executing on is to become cash flow positive in this short-term perspective. Was there anything you asked about seasonality- Exactly ... in the cash flow? Yes. Of course, we do see that. I would say that typically, we have a better cash flow in the beginning of the year. That was what we saw in the first quarter. In the second quarter, it's more back to normal in a way. There are some, a little bit more variation than we've seen before. We have individual deals affecting like this large India deal. So it's hard to tell, but I would say it's, we're on that sort of normal path in cash flow. We're always, of course, being cost-conscious. That's very important to improve our result. Of course, services is important. We have reported on the good pipeline. We now see a result of that with a good service delivery, and that's sort of a more immediate term positive for cash flow. Typically, we get shorter delivery times and well- sort of well-paid projects with our customers, and also contributing to the sales growth with licenses. There's always a relation between the consulting engagement we have, service projects that we do, and Modelon Impact for our customers. Perfect. Thank you, Jonas. That was helpful, and Magnus as well. My third question is a little bit more business case like. I mean, if I look at the customer slide, you have about 38 different customers, I think. I've followed you for quite some time now, and I know that your clients are very happy with the offering, and you have a long track record with many of these. It comes down to, I, I think from my perspective, I mean, looking at the total annual turnover, each of these accounts is fairly small, and it has been small for a long time, while these corporations are quite big. If you could help explain, I mean, how can you scale your engagement with these clients? What are the, your opportunity within, l ike, take Mitsubishi Electric, for instance. If you've been a, a supplier to them for, for many, many years, they still don't look to be that, that big, if you follow what I mean. It's not criticism about your offering, it's just a question on how scalable is the, the solution, and how, how can we think about that in a more sort of longer term? It's not a near, near-term issue, it's more how, how big can Modelon become from Mitsubishi, for instance, in terms of user or total revenues and engagement? Are there, are there areas that you can expand into? A little bit relating to that, please. Yeah, I'm happy. It's a very good question. I'm happy to elaborate a bit on that. It's true, we have in our portfolio, a good amount of really large technology companies, where you have thousands of engineers working. Absolutely, these companies, they do represent a very strong opportunity for upsell and growth. We didn't really talk about it today in this presentation, but we usually refer to our strategy, this land and expand strategy. That stands. We believe, strongly believe it's, it's, it's the right one. If we look at these customers, many of them are also on a journey, and the journey that they are on is to adopt simulation tools, digital methods, more broadly in their organizations. The teams that we are working with, and in particular, that's true for the longer-term customers we have, they are typically specialists. And the growth opportunity in the sort of specialist community with this company, it is there, but it's a, it's not as substantial as when you move into the more sort of mainstream engineering community. This is the step that we're seeing that we can take with Modelon Impact. And so that is then related to the companies also maturing and doing these transformations, which does take time. It looks different in different industries. It looks different in different companies. So that also mean. Very important there is also that we are designing our product to support that kind of. There is a buzzword in our industry, democratization of simulation, that may, may, basically means to take these methods and make them available for, for a broader, the broader engineering communities. That's one of, of, of the strong goals that we have with our product, to design it in a way that can drive and support that transition. I should say that we are, that, that is on our side, a journey. Looking at our roadmap ahead, we see things coming, coming up that is addressing this. We, we saw functionality in, well, we see functionality in every release that actually takes steps in this direction. There is also another aspect, which is also something that we're working actively with, is that you, you, you typically see also, you, you, different, let's say, different activities in these companies. You have one activity that is related to the research and innovation, come up with new technology and so on. It's, it's typically, well, it's sizable teams and departments, but then the good ideas are then taking from, from these groups and into the production teams, design, and production teams, which is at, at a different scale. It's also important for us to at an entry point, we, we, we, we are often starting off in the sort of R&D departments, and then from that, we also need to work active, actively with the customers to bring our solutions also into the production use. Again, the methods, the type of simulation methods that we work with are currently in the maturity state of the industry, more present in the R&D phases than in development phases. This is a strategy for our customers to bring these tools also into these we're working. We're absolutely seeing that this journey is ongoing. We're looking at our growth journey with a long-term perspective. You see on the financial goals, we're looking at the 20% EBIT margins long term. This, these developments are, t he dynamics, how we understand the industry here, is one of the sort of fundamental aspect that makes us strongly believe in this goal. We see a very large opportunity, and we see that we're working with the right customers to enjoy that. Is that helpful? That's very helpful. Thank you, Magnus. Thank you, Stefan. That's all for me. Okay. Thank you, Stefan, and, we should also have Alexander Flening from Redeye with us. Alexander, are you here? Yes, I'm here. Perfect. Hand over to you. Thank you. Yes, so hi, and thank you for the presentation. Yes, you mentioned the release of the new Impact version. Can you elaborate on how this update can increase the scaling capabilities and upsell prospects? I mean, the specifics on this update. Alexander, Alexander, we maybe try without headset or something. It's- Okay ... it's difficult to hear you. Hello? Yes. Yes. Fair enough. Excellent. Yes, you mentioned the release of the new Impact version, can you elaborate on what the specific this update can increase the...? I'm, I'm sorry, I still have difficulties to hear. It's, it's bad audio. Maybe someone, if someone could got that question, please repeat it. No, it, it's really hard, Alexander, to hear you. Yeah. Any, any chance you can go off your headset or something? If I speak like this, is it better? It sounds like it's the, maybe the connection. Yeah. It's pretty- Maybe write in the chat. Uh-huh. Yes. Okay, Alexander, should we give it one more try or? He posted the question in the Q&A. Okay. I got it in the Q&A, so I'm gonna read the question. From Alexander Flening, Redeye, you mentioned the release of the new Impact version. Can you elaborate on how this update can increase the scaling capabilities and upsell prospects of Impact? That's the first one. Yes. I very briefly summarized the high-level new capabilities that we have. One capability that we, that is improved is the possibility to launch what we call multi-execution experiments. That basically means that as an engineer, if you want to explore some use case or some design, maybe if you have, say, an air conditioning system, you, you, you have a certain type of your heat exchanger, and then you change the size there or the dimension. You want to see, what does the performance look like there? That's a single experiment. If you want to really understand how variations of some parameter in your design impact the performance, you may want to try thousands of different cases. We have stronger capabilities now for users to, to launch experiments, many experiments that run in parallel, and this is also something then that we monetize with the upsell options. Another type of functionality that's important for, for growth, is what we call deploy or sharing. Basically, it means that if you're an expert user or that you, you may sort of create the digital model, you set up an experiment and tune that, but then you want your colleagues, mainstream engineer colleagues, to use that and try out their ideas. We have now stronger functionality to share set-up models and experiments with mainstream users that can access the platform and perform their work on that. This is another sort of dimension of, of ups- upsell scaling that, that we have in our business model. These are two main functionality areas, which we, which we are improving in this release. Also, I mentioned that there is another, w e're strengthening the, the, the collaboration functionality. Basically, the benefit of having several engineers working on the same information, same data, it improves, it makes it easier to work distributed across teams and, and so on. We have improvements also there. We're taking steps in several dimensions to drive this. I, again, also here, I want to emphasize we're on a journey, so we still have things to realize in the product for, for all this. We absolutely expect that we're, w ith this release, we're releasing functionality that will have impact on our business. Okay, a follow-on question from Alexander Flening, Redeye on the new release. Do you see an increase in lead generation since the release? If so, do you attribute it to the new Impact version? Short answer is no, because due to the season timing, we have actually not really launched our related marketing campaign for the new release. Since the release came in June and significant parts of our target audience are on summer holidays of various sorts, during, during this season, we are actually waiting until about now before, before starting to really, push for this. Then, of course, we expect that this will have effect. I did talk, tell about that we're seeing an increase in lead generation from our marketing activities. That's, that's a great effect, and that's more from the type of sort of content marketing that we are continuously providing through digital channels, and also of the type customer testimonials and so on, of the type that I, I, I presented here today. Mm-hmm. Okay, thank you. Third question from Alexander Flening, Redeye. Magnus, I think this one is for you as well. Do you expect the ongoing shift of the delivery model to extend into 2024? You touched on this, but can you provide a more detailed explanation regarding the negative impact this transition has on the ARR growth? I would say, again, we're talking about journeys here. The actual transition will... It may continue a bit into next year, but I would not expect an impact on the ARR growth to extend that long. It's basically an effect of the need to interact more with customers when this change goes on. You know that we have sales cycles that are six to 12 months or more, typically. When we start this change to move towards the managed solution, we already have prospects in the pipeline that may have the on-premises version on their minds. What we're doing now is that we're doing a fairly careful customer profiling to understand which customers are appropriate to serve with on-premises and which customers are more appropriate to serve with the managed solution. The conclusion we have taken is that the fairly large portion of our customers and prospects are better off with a managed solution. We need to talk to these customers and explain to them, "Well, we, you were thinking of this model. We want to explain to you why the managed solution is a better offer for you." Of course, every customer interaction, it will have impact on the sales cycle. This is the effect. Now, since since some time ago, most of the leads that we are generating, they are sort of already generated for the the intended delivery format. That the need to have these interactions is is is reducing. The impact of this current ongoing change, I do not expect that to continue into into into next year. Okay. Thank you, Magnus. We have the last question from Alexander Flening, Redeye, and we have more questions coming in. From Alexander: "Compared to other regions, is the migration to the cloud option moving slower in Asia? And if so, what is the strategy to increase the adoption of the cloud option? You have added two channel partners in Asia." Magnus, please. Yes, that is a good question. It is, let's see how to put that. Asia, it's some distinctly different countries we're working in there. For example, we are working with customers in China. They're very different from customers in Japan, which are different from customers in Korea, and so on. The markets work actually a bit different. We're seeing increased acceptance and adoption of cloud solutions, in particular in Japan. We do expect to see that also in Korea, although it's still so early days to have specific feedback. We think the, again, the managed cloud solution is the more convenient and streamlined. Again, if we're doing an on-premises delivery, and you, you could call that deployment option also. Some call it an on-premises cloud because it gives the cloud experience, but it's, it operates on the customer hardware, and they need to to, to, to operate the platform. Basically, that means they need to have skilled IT teams and a certain, for this to be appropriate, a certain sort of scale of usage. It also requires a different type of customer support than the managed solution. With the managed solution, our customer support is basically only with the users of the platform. If we're delivering the on-premises option, we also have substantial support to provide to the IT groups and so on. That's more difficult to do over large distances, and also in Asia, there is, in particular in Japan, there's also a language barrier, which makes the on-premises version sort of less less appropriate. I'm babbling on here. I don't actually forgot exactly what the question was, but we, we. This means basically we, we need we are profiling our prospects and customers carefully to understand who, who are appropriate for each option. We're seeing that the managed solution is, is probably a good option for many customers in Asia. Thank you, Magnus. We have three questions, and I'm gonna group them into one question and direct them to you, Jonas, and it is about the FX effects. The question is about the contracts, customer contracts. In what currencies are the contracts signed and written? In addition, then, of course, please explain your revenues and costs, and in what currencies you have your revenues and costs. The third one, then, of course, how is the SEK development affecting- Yeah Modelon? So basically- For you, Jonas. ... how are we, how are we affected by currencies? That's the main thing. No, I think, yeah, also this contract thing is to understand really the business model, the currency-. Yeah ... in the business model. Yeah. Yes, exactly. We have costs globally because we are established in Europe, in Sweden, in the U.S., in Asia. Of course, the costs are in the local currency, and all the contracts are in the local currency. In the U.S. market, we're selling in U.S. dollars. In the European market, we're selling in euros. In the Asian market, we're selling in Japanese yen, in Japan, Indian rupees, in India. China is different. There's U.S. dollars, usually, or at least translated into U.S. dollars as the sale is done. We are affected by currency effects. That's why we're showing the constant currency on ARR, because we want to take that effect out. The sort of weak Swedish crown in general has a positive effect on us because we do have slightly more revenue and contracts in the foreign currencies than we have costs. As an example, U.S. dollars, we're in the report saying that there is a net of roughly $1 million, no, I think less, 0.8 or something, but at least less than around $1 million positive U.S. dollar effect on the net. So when there is a change on the FX rates, if it's a weakening of the Swedish crown, that has a positive effect, no major effect, I would say. Also, if this sentiment in the market will change, I don't see any huge effect of that on us, because we also have costs in U.S. dollars. All in all, balanced, positive, I would say, on currencies, and we're looking at that all the time, of course. Okay, thank you, Jonas. We have a final question in the chat, and I'm gonna give it to you, Magnus, and I think it's a perfect question to wrap up this investor presentation with. It is about the ambition and financial goals and the target of SEK 100 million in ARR. Maybe for you to wrap up the presentation and just. Yes. I mean, the short answer there is that the, the financial goals are to achieve the 35% ARR growth rate in, in the medium term. I, I believe the, the question refers to the, the previous formulation we had on our financial goals, using the SEK 100 million ARR number. We, we updated the financial goals, I believe it was in the third quarter last year, to, to a format that's less tied to specific points in time. That we explained at the time, we intend to, to, carry the same level of ambition as the, as the previous formulation. We're no longer talking about absolute numbers of ARR, we're talking about the growth, level. The ambition is, unchanged. We're seeing a great, great opportunity for our business to prosper and grow, as we move forward. Okay, I think that's it for the Q&A. Maybe some final words, Magnus, from you, and then, we close for today. If you have, more questions after this, call, please feel free to reach out to Magnus and Jonas. Magnus? Yes. Yes, I just wrap up by showing the bullet, bullet highlights again here. The solid revenue growth of 36%, improvement on the EBIT, the new major release of Modelon Impact, and the new reseller partners in Asia. We have the third quarter interim report coming up on November 10th, so I, I hope to meet all of you again then. Thank you for attending. Thank you, everyone.