Good morning everyone, and welcome to this presentation of our year-end result 2022. Key message of today is like we've said on all our quarterly presentations, is that we are on the right track achieving our midterm targets. But, yeah, just before we go into the quarterly result, there is just a person that I want you all to meet. As we announced this summer, we are strengthening our... Or 2022 summer. We are strengthening our organization in the way that Stein Yndestad, whom has been our CFO, is taking up a new role, staying as a part of our group management team, but is going to work on focusing on M&A, also working on the new countries we will expand into, and as well working on investor relations. We have, as we also informed during the summer 2022, we have recruited Dean Zuzic as our new CFO. Dean started with Norva24 in the role February the first. He's with us today. Dean, please present yourself. Yeah. Thank you. Thank you, Henrik. Quick presentation myself. As I said, I'm very excited to, I mean, be here. A bit about myself first. I have a history. I started off my professional career as a consultant in McKinsey & Company. Worked as an analyst and chief analyst in first for a Norwegian minor Bank, and then for Danske. The last 25 years of my life I have been holding several CFO positions, 15 of them for private equity-owned companies, Plantasjen and Norske Skog, just to mention a few. The latter was also involved in industrial services, which is a small part of what Norva does. The last 5 years I've been CFO of listed companies in Oslo. The ABL Group, an engineering consulting company, global, for the last 2 and a half years, and before that, in Spectrum ASA, which is an oil service company within the oil and gas space. Why Norva? I must genuinely say number 1, I'm interested in the space. Number 2, I'm pretty impressed with what Norva has actually achieved and their growth trajectory these last years. Maybe the most important is that I was very excited about their strategy, the strategy of growth, their focus on operational excellence, I would say, and their aspiration to actually build a digital business. Very excited to be here and to work with Stein. Henrik, unfortunately, is, I mean, leaving us to fulfill the company strategy. Thanks. Very good. Thanks a lot, Dean. Again, warm welcome to Norva. Yeah. Thanks. With me here today as well, have Stein Yndestad and Sture Stölen. We have agreed that today Stein Yndestad will do the financial presentation, and then from next time on, it will be Dean Zuzic doing the presentation of the numbers. All the four of us are in the room and after the presentation, we are as always ready to take questions. As always, I would like to just start by using two minutes on presenting our industry, because I think that's just important to understand. What we are working with is an infrastructure that very few people think about during their daily modern life, but that we all are heavily dependent on. It is basically the infrastructure that makes sure that we have access to water and sewerage in any building in society. We are working with maintaining that infrastructure. It's important to understand, again, we're not doing construction of that infrastructure. We're doing the running maintenance. As you can imagine, there is a lot of tanks and pipes under the ground that is connected in different ways in order to make this whole flood work. What we do is that we do the maintenance part of that. There is a number of tasks that needs to be done in order to do that. Many of them being done with a certain frequency, some being done ad hoc. What we do as said is, we do all these maintenance tasks. We are as well a compounder growing through acquisitions as well as organic growth. We have a long history, if you look at the history of the companies that Norva24 consists of, because this is really an old industry. As a good illustration of how old the industry is, we have two companies in Norva24 that is more than 100 years old. The journey as a compounder started in 2015 in Norway. At that time, it was 10 branches, and we had around 230 employees. Today, we have developed into the leading Northern European player in our industry, underground infrastructure maintenance, with operations in Norway, Sweden, Denmark and Germany. We have 76 branches, and last twelve months revenue of NOK 2.5 billion and 1,600 employees. Really this is a very fragmented industry, so this journey we can do for long. We are aiming, and our vision is very clear. We want to build a European lighthouse in this very important industry, underground infrastructure maintenance. That was a little on the industry and our journey as a start. Now we will just go a little into the Q4 numbers and our year-end numbers that I have here. Looking on the quarter and a few highlights from the quarter. We had a good strong growth of 22% in the quarter, reaching 720 almost NOK 1 million in revenue. We had a solid currency-adjusted organic growth of just over 5%. The growth from acquisitions was the remaining, which is 16.5%. Our EBIT ended at NOK 35 million, our adjusted EBITDA ended at NOK 71 million. As you will, as we will comment a bit on as well, is that we saw a winter effect in Q4, which we normally see in Q1. That winter effect we saw also in 2022 during Q4 due to the early set in of the winter, that impacted the EBIT. I will come back a little on that later also because that particularly effect impacted the Norwegian operation. As those of you who has heard us present and Norva24 has heard before, we normally have this winter effect in Q1, where the operation simply works slower during the winter period. It takes longer time to drive. It is more difficult to find our way and into the, into the underground simply when there is snow above. That's why we normally see a lower margin in Q1. As said, we also we saw this year in Q4 that the winter set in earlier than what we have seen in recent years, and that impacted the EBIT in the quarter. Yeah. A little on each country. We have a strong total growth in Sweden of 24%, Germany of 41% in Q4. We had a strong currency-adjusted organic growth in Sweden of 8%, and Denmark reaching 12%. Germany with stable revenues on the back of very strong comparable numbers. Remember, last year in Q4, we had an organic growth currency-adjusted in Germany of just around 27%. Yeah. We still have a very significant M&A pipeline and expect 2023 also to be a strong acquisition year. We have actually already now started with the first acquisition in 2022, a company in Oslo, in Norway, NRC Gravco, that we acquired with a revenue of just around NOK 90 million. A good start on the year on the acquisitions as well. Excellent cash flow in Q4, we will come back on that as well. really good cash conversion on our operation during that quarter. Let me look a little into each of the countries, starting out with Norway. Norway with a strong growth in the year, lifting the revenue by just over NOK 100 million comparing 2021 to 2022. And having for the year 12.7% in organic growth currency-adjusted. In the quarter, lower at 2.3% currency or currency-adjusted organic growth. But again, this is linked with the early set in of the winter. The impact we normally see is set in Q1. We saw that in Q4 last year simply because the winter came earlier than what we've seen recently, recent years. When that happens, we see some of the same effects as we normally see in Q1, also in Q4. That is also impacting the EBIT, as you can see on this figure. Taking a look on Germany. Germany continuing good growth and also a good EBITDA margins, realizing an organic currency-adjusted organic growth of 4.4%. Please notice the number next to the 4.4%, the 27.5%, that was the organic growth last year. as we are, we're really happy that the German organization is able to grow on the back of those very strong numbers that we saw in Q4. As you remember, we also had very strong numbers in Q3 2021. We have managed really to grow on top of those strong numbers we saw in the H2 of 2021. Looking into Sweden, strong organic growth of 7.8% organic or currency-adjusted organic growth. Also a strong growth in the year, lifting us from NOK 306 million in 2021 to NOK 427 million almost in 2022. In the quarter, lifting from NOK 39 million to just over NOK 50 million in adjusted EBITDA. Next one is Denmark. Denmark also delivering a strong currency-adjusted organic growth of 11.9%. Denmark also impacted by this weather impact that we saw in Q4 that is reducing their EBITDA margin for the same reason as what we saw in Norway as well. Still just confirming that we expect, as we have said, also in the previous quarterly presentations, that we expect Denmark to continue improving the EBITDA margin also in 2023 and onwards. The impact we see here in Q4, that is the winter effect. That is to be seen in regards to that. Yeah. Yeah. Good morning, everyone. Going through the P&L of the group, trying to give you a little bit more insight into the Q4 numbers. We reached NOK 713 million of revenues in the quarter, which is a growth of 22% on the quarter last year, which is also the growth we saw for the full year in 2022. Looking at the cost side, our costs are impacted by the inflation, and despite our price increases, we do see some cost increases more than revenues in the quarter. This is partly due to the winter, but there is also a lag in the price adjustments in public contracts, which we have most of in Norway, where we also have the largest margin reduction. We'll get back to that a bit later. We have produced a larger share of our production with subcontractors, and we also have used more purchased goods in some of our productions, hence the large increase in our operational service expenses. You have to see the operational service expenses jointly with the personnel cost, and those are not increasing in the same pace as our revenues. Vehicle operating expenses is up 35%. That is really just a reflection of the growth of the group, and then the additional cost increase above revenue increase is only fuel cost. Fuel cost comprised 5% of our total revenues in Q4 last year, and it's 6.5% this year. Other operating costs are highly impacted by the IPO cost in 2021, this year we have made a provision for a warranty claim against us for some work that was done a few years ago. This and the settlement related to Denmark in 2021 means that the reported numbers are very much influenced by the IPO, the warranty claim and the compensation in Denmark. It's better to look at the adjusted numbers. The adjusted EBITDA of the quarter is 13% down and is heavily affected by the winter in the north and particularly Norway. We here see the growth we have achieved lately. I mean, we have 92% growth since 2019. We have 62% growth since 2020, and from 2021 to 2022, we grew by 22%. For the Q4, as I mentioned earlier, we also grew by 22%. Comparing Q4 2022 with Q4 2020, we also see there a 61% increase. We have a strong growth record. I wanna draw your attention to the seasonality of our business. In the last two years, we've had winter coming late, having very little impact on Q4 performance. We do see in 2022 winter coming early. When we were here in Stockholm presenting our Q3 numbers, there was heavy snowfall. The Airport Express Train was late or had reduced frequency, and also the buses stopped working. We did see that winter came early also to Stockholm. This has been predominantly Norway and Sweden, but also to some extent, Denmark. We see an underlying margin reduction in all of those three markets. The adjusted EBITDA is NOK 71 million with a margin of 9.9%. The margin reduction from last year is very much related to the early winter. During the year, we've also seen some high inflation numbers, and on the public contracts, which are linked to various indexes, mainly transport indexes. These indexes will be, or these contracts will many of them be renewed, or not renewed, but indexed on the price levels from 1st of January. Many of them are around 10%. We also have a seasonality in our operational cash flow. We had a cash flow of NOK 66 million in the H1 year, and we have a cash flow of NOK 277 million in the H2 year, so talking about operational cash flow. If we look at our balance sheet, first of all, I would, you know, try to highlight or like to highlight that we have a very strong balance sheet. That combined with our strong cash generation and the fact that we have a loan credit facility of more than NOK 600 million unused, means we will have the capacity and means to deliver on our growth ambition. Our leverage is moderate at 2.1x in the reporting. When we look at the way we calculate the leverage towards the bank, meaning pro forma last twelve months, we are below 2x. Our covenant related to this, there is only one covenant for Norva, means we need to stay below four times, there is ample headroom in the contract as well. Our net interest-bearing debt at the end of 2022 was NOK 1,074 million, and about 70% of that is related to lease agreement and rental contracts according to IFRS. Looking at the balance sheet, we also see that we have improved our capital efficiency. We have 22% revenue growth, looking at property, plant, and equipment, plus the right-of-use assets, those are up by only 7%, indicating that we are using our machinery and equipment in a more efficient way. This is doing a little bit of a dive into the debt side. We have seen some comments related to our balance sheet and our cash flow, which are somewhat misunderstood. We'd like to spend just a minute on this. Out of our NOK 1.1 billion of net interest-bearing debt, about NOK 800 million is IFRS debt. Comparing to a company which does not use IFRS, our debt looks significant. This NOK 800 million is comprised by NOK 280 million, which is rental agreements, regular rental agreements that we have for anything from 2 to, well, the longest ones are very long, but very few of those. The regular rental agreements are between 2 and 6 years. That's NOK 280 million of the debt. We have the leasing agreements, which are NOK 450 million, and that's leasing of most of our production equipment. That leaves about NOK 340 million of bank debt in the Net Interest-Bearing Debt. A very modest bank debt. We still have NOK 611 million unused in the credit facility, which lasts until the end of 2025. There is also a 1-year extension to that if we would like to renew it or extend it. Yes, that was the numbers. Given the importance of M&A or acquisitions in our M&A strategy, we'd like to give you sort of a little bit of a dive into how we work on this. We've done 41 transactions since 2015. More than 90% of these have been done bilaterally, meaning that we are the only ones in discussion with the seller at the time. There is a very large pool of potential targets, 1,900 targets in our markets, and we currently, and most of the time, have around 100 or more on our long list. We have usually had about 20 or 20+ in discussions and about 10 or 10+ in advanced discussions. These numbers may not change that much, but there are things happening behind the scenes. People, companies coming in and companies coming out. We have a programmatic approach to M&A, and by that we means we try to be very structured in all the steps from scouting to integration. Screening is done both locally by our local management and centrally by the M&A team, desktop, mostly on the M&A team. We get a lot of very useful input from the operations out there. We're very clear on what we are looking for and also what we are not looking for, meaning that we spend very little time on things that are out of the question and are able to spend most of our time on cases that are really attractive to us. Those criteria I'll get back to shortly, but it very much about, you know, size, profitability, and what kind of industry scope they're in, because we will stick to where we are today and not divert from that from that direction. Our integration is light in some areas and quite strict in others. We keep local brands, we keep local management. They are still the king of their operations, we do give them some a delegation of authority, which makes it pretty clear where they can maneuver and where they need to involve Henrik or myself or Dean, that is, in the future. It should be easier for them to maneuver. We also implement some tools and support that benefit all of these companies. Our acquisition, we also do take out some synergies, and those could be through bid management support, country or large accounts, procurement, IT systems, et cetera. Here we have our investment criteria. For us, it's important that we do sizable transactions. We've set a minimum size at 15 million NOK. That should be very few transactions are close to that because there, the integration time or the deal time is about the same for a large transaction as for a small transaction. That is even more true when it comes to the integration post-transaction. Our average deal size the last couple of years has been around 50 to 60, and we find that a decent level, we also look for larger bites given that we need to do some 500-600 million NOK in M&A in the next years to reach our target. Of course, going towards the NOK 20 million-NOK 15 million deal size would not work, just given the number of transactions that would be required. When it comes to profitability, it needs to have sort of a minimum EBITDA margin of 15%. As we do not want to buy restructuring cases, there are so many good companies out there that we'd much rather spend our time on those than working on or fixing something that is not great. We're looking for companies with a long history and a long sustainable growth record, so we know there is a customer base and a good standing in the community. In addition, we look for strong management that wants to continue running the business. A modern fleet, at least a fleet that doesn't have to be replaced shortly after the investment, and also looking for the strong local brands. Also the synergies. I mean, lately we've done quite a few transactions in Berlin, benefiting from the increased density in that area, and that's also one of the reasons we did the transaction in Oslo now in January. Yes. On to the next markets. I mean, we do see plenty of potential in the current four markets we're in, but we would like also to start looking at markets outside these four. As we stated in the IPO meetings and the IPO prospectus, we are now sticking to the markets close to our current markets or adjacent. That list of countries is the same, but we have expanded on to the West and looking at some opportunities in the UK and Ireland as well. Very good. Thank you. Yes. Just spending a little time on our midterm targets. As said in the beginning, we are on the good track achieving our midterm targets. Our midterm targets are for 2025, we're aiming for NOK 4.5 billion in revenue. Medium-term target on the adjusted EBITDA margin is 14%-15%. I'll not comment on the capital structure and the dividend policy, that's in line also with what we are stating here. The dividend policy is very clear. We invest the profit into the business and into our acquisitions and do not pay out dividend. What our... What our vision is that we are building this European lighthouse in the underground infrastructure maintenance industry. A very fragmented industry. It's a NOK 140 billion industry in Europe. Looking on just the 4 markets we're in today, we have 1,900 players in the industry. I said we want to be the biggest in this industry. We also want to be that lighthouse that the rest of the industry looks upon to see the future direction of the industry. Really, becoming that lighthouse is our vision. We are on the right track achieving that. And as Stein said, we are beginning now with Stein's new role to look into finding the next country to further expand into. With that stated, I suggest that we open up for questions, and I leave it up to Sture Stölen, our Head of IR, to take us through the questions. Yes. Thank you, Henrik, Stein, and Dean. We will take questions first from the phone lines, and after that, we will refer to the chat or if anyone in the room has some questions. I hand it over to you, Operator, to organize the questions on the phone line, please. Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you'd like to withdraw your question, please press star then two. Your first question comes from Karl Johan Bonnier with DNB Markets. Please go ahead. Good morning, Henrik, Stein, and Sture as well. And obviously our new CFO. Good to have you and your call. I'm looking forward to discuss with you in the future. Looking at the progression during 2022 and then looking at the cash flow, saying just to get a better feel for it. You tied up quite a lot of working capital in the H1, and now you released some of it in the H2. Do you feel that it's been more difficult to release capital now, I guess, when you have maybe more of a business structure also in markets where you might have a less of a, say, cash payment opportunity like Germany? It is more challenging. You also see that we are tying... I mean, we've had good cash flow, but there is more work to be done. Especially one of the, some of the larger transactions we've done lately or the H2 of 2022, we need to spend more time on optimizing the cash management in those operations. That is correct. We believe there is future potential here. When you look at CapEx, it also seems like you or maybe the organic growth has consumed a little more than than at least the model did historically. Is that also something for the future, or is that more temporary kind of things hitting, say, the H2 of this year? That's more of a temporary thing. It's partly related to the fact that we did not get as much machinery as we may have hoped for in 2021 and early 2022. These things, I mean, we have a very stable investment plan. When it comes to equipment, but when it arrives, it's a little bit not erratic, but it's not fully under our control, so to speak. I need to pick your brain a little more on the acquisition side as well, Stein. Yeah. When I look at that, the pipeline, how you describe it with 14 opportunities that are under advanced discussion. If I go back a year in time, you said that that was 21. Yeah. Now you have delivered on seven transaction basically during the last year. I guess the remaining 14 are probably not the same transaction, but could you elaborate a little on how that kind of advanced discussion mix maybe have changed in size of transaction, geographic, your geographic preference, and so on. Yeah, you're right. It's not as if the 21 we had last year, you take out the 7 we've done, and you have the same 14 left because there are quite a few that we have discouraged during the year, and there are new coming in. The composition is, I mean, the composition is fairly stable in terms of the countries. I mean, it's mostly German assets. The second most predominant geography is Sweden, and then you have Norway and Denmark sort of trailing. The size of the assets are. I wouldn't say that has changed significantly from last year either. We've been. That contains both smaller transactions and larger transactions. Yeah. The majority of them would be in your sweet spot, so to say. That is right. That is right. There are no, Then? There are no targets on that list outside of the four geographies where we currently are present. That was a follow-on question for later, so. Yeah. I also need to pick your brain on, there is obviously such a good density argument to your business model, and I see what you're doing in Berlin, see what you're doing in Oslo. How quickly can you say get the structuring going when you acquire something from a density argument? Is it a quick process of integrating it, so you can realize the potential gains in 6-12 months? Or is that more long-term? Do you wanna answer that, Henrik? I can add a comment to that. You're right, there is clearly a density driver in our consolidation journey. What we typically when you look on Berlin, one of the first things we start doing is to establish a good collaboration between the entities we have there so that they become good at distributing the right vehicle to the right job. Just that creates a rather fast effect. Another effect that comes is when they get even closer so that we can also coordinate closer who bids on what in the geography and can do bids together so that we can cover the bids better. But typically rather fast, we get a first effect by simply letting them start to communicate together. It's actually always very encouraging to see how fast that kicks in shortly after an acquisition. We acquired Jutzy in early Q four, and they already did this maneuvering in during the Q four. Excellent. That sounds promising. Just looking at 2023, coming back to the cash flow profile, would you expect the same kind of profile this year, weak H1 to stronger H2? Is the comparison now much easier for you, so to say, in the H1? Is the business driver there too big? The underlying structure through the year will be the same, but we have to... I mean, the cash flow was particularly impacted in 2022 by the sort of, what do you call it, IPO cleanup, or something. I mean, there were large receivables and large payables related to the IPO going from year-end or going from 2021 to 2022, and that's of course an impact we will not have this year. So, so, so, uh, so the- Yeah. One final for me. Just if you could elaborate a little more on this warranty claim that you are now reserving for. Is there a lot of those kind of things that we should be aware of that you have inherited from, say, predecessor companies that might come back and haunt you? No. It's actually it's actually the only one that we've seen on this size. It's really rare that we that we see these instances. It's the only one that we've seen even close to this size. Excellent. Thank you very much. All the best out there. Thank you. Thank you. Again, if you wish to ask a question, please press star then one. We'll now pause momentarily to allow questions to register. There are no further questions on the phone line. I would now like to turn the conference back over to the speakers for any further questions. Thank you, operator. We have, one, a few questions from the chat from some investors. One is, if you look at this margin deterioration in the quarter, how much can you quantify a little bit? Help us a little bit. Help the market. How much is winter? How much is delayed compensation? Some guidance, maybe. By far the biggest impact it is winter. Normally what we see in Q1 and then this margin impact is also what we this year have seen in Q4. By far the biggest part of it is this winter effect. There is, as said, also an impact from price increases coming first of January 2023 based on the index regulations for 2022. There is also an effect there that we have in the quarter. That's particularly also with Norwegian's contract. It's those two impacts, but the by far the biggest impact is from the early winter. There's another, related to winter as well, and is more into Q1. Do you see more of a normal winter in Q1 or how should we view Q1? Well, it's what we have seen in Q1 this year is weather-wise pretty similar to what we saw Q1 last year. We've seen a winter that looks pretty similar to actually what we saw in last year Q1 and as well in, actually also in Q1 2020. A pretty similar winter condition this year. Okay. We have some more questions from Jacob Eller at Danske. I think we answered a few of them. One question is to quantify how much of the organic growth is price and volume. I think you can give some guidance on that. Yeah. We have generally price adjustments in the year, and also in the when you look on the quarter of, in the range 4%-11%. It's within that range that we have adjusted the contract. We haven't laid out an average for all customers, so it's within this span that we have adjusted the prices. The remaining part is then volume. Also related to organic growth. The growth was 5% in Q4 and 9% for the full year. Is the slightly weaker growth also related to winter effect? Yeah, it is. You can also see that particularly when looking on the different markets that Norway is suffering there the most, and there's, we have the biggest winter impact. Norway have a 2.3%, I think it was, on the current, on the organic growth. Simply by operation moves slower when there is snow. If there is a half a meter snow on the ground, the vehicles move slower. You have to clean the snow to get into the underground. Things just takes more time. It's that's that's also impacting in that sense the organic growth so. Mostly actually the efficiency. It's, it just gets much more complicated when there is snow. Okay. There's a follow-up. A lot of questions on the chat today. There's a follow-up on the price adjustment from first of January. How big part of the volume is that? He assumes it's around 20%. Is that a good assessment? I think we can say that the price adjustments we get 1st of January is mainly with the Norwegian public contracts. And we have in Norway around 30% of the business on public contracts. It's a majority of those 30% of the Norwegian revenues that is impacted by this annual increase. A little bit in Sweden as well. We also have some impacts on the Swedish contracts, that is correct. But the main impacts are with the Norwegian revenue. Yeah. Yeah. Yes. One question also into Q1, that's on the topic of sick leave. Is the sick leave level at the normal level or is it still higher than you've seen historically? Sick leaves are still higher than what we saw before COVID. We are still waiting for the sick leaves to come back to the same levels as we saw before COVID. We still see that those are higher than what we have seen during just before COVID. Still on a rather higher level than before. I think that, I think we did comment on the warranty provision claim and, the question is there any additional risk? I think we answered that. I think this concludes the questions from the chat. Could we come back to the operator, see if there's any follow-up from the phone lines, please? Thank you. There are no questions on the phone line at this time. Very good. Just wrapping up. As said, we're on the right track achieving our midterm targets. We know our vision, we know what we want to achieve and what we want to do, so, and we will continue that journey. Thanks a lot everyone for attending this morning. Yeah. Have a nice