Hello, and welcome to this Q4 presentation with Pagero Group. With us today we have CEO Bengt Nilsson. My name is Kristofer Berggren, and I work for Finwire Media. After the presentation, there will be a Q&A session, so if you have any questions, please visit finwire.tv, click on this Q4 webcast, and there you will find a form to the right. With that said, I hand over the word to Bengt. Thank you. Thank you all for listening. This is the company's first quarterly report as a listed company, so we will try to do it as good as possible for you, and please put your question up when we are done with the presentation. Yeah. To give a little rehearsal what we are doing, we are building the world's largest business, open business network. Yes, you know. For those of you who don't know our sort of business, we are connecting companies' business systems with each other. Everybody that has some sort of operation, they have some sort of business system, and we have sort of said that can we connect all these business systems together globally and see to that they can sort of operate in an environment where they can connect to their buyers and their sellers. We have achieved something to really see that the digital traffic goes digital all the way. All this is driven by regulation. The countries in the world are now trying to close the VAT gap, so they are enforcing legislation or regulation, however you call it, in all aspects what they do, especially related to VAT. We have today over 70 countries that have done so, and we are supporting them. Companies operating and selling in this world, they need to have a simple solution to see that their invoices are getting paid. They, well, will not get paid if they're not being compliant with the rules that are in the local countries. That's what Pagero does when it comes to that. On the buyer side, we wanna have automation. We wanna automate the whole process, and we wanna see to it that the supplier and buyers can operate with each other without any problems, and we want to do that when it comes to business messages like orders or transportation messages or payment messages or invoice messages, of course. We take care of that. All of that creates an environment where you sort of save something, you save paper. If you save paper, you make a positive impact on the environment. If you look at it from that point of view, it doesn't cost anything to contribute to the environment, but if you take away the paper. That's what we actually do. ESG is also involved in this in a way. If we look at this picture I show you, the government, we call it the fifth corner, are now connected to the platform, which means that we can support the legal structure that's sort of enforced by local governments to see to that, the invoices are being compliant and done in the right way, they're stored in the right way, and they're stored in the right time. That's sort of GDPR, you can call it, also that are involved in this. When it comes to the banking system, we have a solution now in the platform that solves most of the transactions with banks to banks, and especially in the P27 projects that are being run in the Nordic markets, where you can do a payment from one account to another account, bank to bank, through the platform. You can also do reconciliation. That is, you can read the bank statement at your account to see what you have. Of course, if you have both accounts payable, accounts receivable, and you know what you have there in the bank account, you can see what you're paying or what you're getting paid for, then you have a full picture of the cash flow in the company group, which is a really good functionality that comes into the network. Logistics providers, we haven't spoken about that much, but we are doing that now. We are connecting more and more logistics providers to the network, which means that you can get your logistics messages into the platform. You get those messages to your business system. You can know where is the goods. You can, of course, also put an order to buy a transportation to send the goods somewhere. Send it multi-leg, send it by a truck, send it by, after that, maybe by a ship, and maybe with a plane. You can get the whole picture of that is being done in the platform. This is what Pagero does, and we are driven on the market by regulations, automation, and ESG. This helps us in making us one of the leading vendors in the world related to this. Important to say, our platform is built like a network, which means that if I do an analogy, it's like LinkedIn. You ask, you see who is in the network, who is connected in the network. Could also be a network that we don't own, that we are connected to, and we can see the guys that are behind that network also in our network, which means that you can connect to them also. You can do roaming that way. All these powerful tools are built into the platform, and you as a user can use this in a very seamless and simple way. If we go to the world map, you always need a world map in these days. We have today customers in over 140 countries. We have R&D centers. We are very proud about pushing this. We have a decentralized R&D which means that it's all over the planet. We have R&D centers in Gothenburg, in Stockholm, in Düsseldorf, in Santiago, in Mexico City, and in Sri Lanka. All these people, 1,450 people today, are developing the product, the network 24/7 to really see that this becomes one of the leading products in the world. The product is. I would say when it comes to product, I would say this is a product race. The one that can do or make a product that really can fit into this picture, supporting countries where you have all the issues with legislation, you have the issues with the. that you need to keep track of GDPR rules. You have the necessity of people to be able to connect easy. Then you need to have put a lot of engineering behind it and then continuous development that goes on. We also add on more functionality, more things that you can do in the network with your data, and the data is the customer's data, and all these things that sort of is contributing to the power of the network is done by these people that are doing this job. We have offices in 20 countries. We have 31 offices. Most of those offices that are not R&D are related to sales. Some of them now we are expanding by also putting resources for delivery in local markets. We're doing so in North America. We're doing so in Middle East Africa. We're doing so also in Australia and other parts of the world, to really see that we can benefit and have a good service level for our customers. You can reach over 12 million businesses in the network today, and we are over 645 employees in the company group. When it comes to the SaaS model that we have, that's the business model we have, we have a yearly fee, and we have a transaction fee. Out of our business, over 89% is recurrent revenue. These numbers are related to last year. It has now gone up from 87% to 89%. The gross margin is 87%, and the customer churn is 2.8%. Gone down further from 3%. We have 14.5 months CAC payback, and we have 30% EBITDA in established markets. I'm coming back to that. People say that, "Oh, but you're maybe losing money." Yes, in some we are losing money bottom line in the company group, but that's because we are investing heavily to grow and to become a leading player from a global point of view. If we don't do it now, we will never get there. We are doing it now. We're taking that decision, and we are delivering according to the plan that we laid out when we raised money in the IPO that we did in Q4 2021. ARR grew 41%, 17% organically. As you all know, maybe, is that we bought a operation in South America that has been developing very well since we acquired it, and that was a part that we lacked into our product suite that we could sort of connect to the platform. We will later this year start pushing Pagero Network business-to-business products also in the Latin American market. We will also look at the possibility to take the connection to governments that is built by our organization in South America to other places of the earth, which where we get the connection directly to government and to our platform directly from that part of the product line. Customer base grew with 61%. Transaction volume grew with 26%. In established market, that is markets where we have an organization, which is fully developed, we generate 90% of our net sales from those markets. There we have an EBITDA margin of 30%. This is important to understand. These markets are growing still. It's not that they're sort of fully utilized and fully sort of sold out. It's that the market have a solid organization on sales, in delivery, and support and everything, and are supporting the product line in the market. That could be the Dutch market. That's Switzerland, Germany, Austria. It could be Latin American markets, and it could be the Nordic markets, where we are cash positive, and we are sort of operating with a positive EBITDA margin. I think it's important for you to understand that we are slowly but surely getting there market by market, and I will comment on that a little bit later. We have a strong cash position. We have SEK 477 million in the bank at the end of the Q4, and we have a positive cash flow from operations. We feel that we are a stable operation that can do a lot of things in the future, and that's important for you to understand. We have a strong development in strategically important regions. Latin America grew with 24.5% year-on-year. I would like to stress that we only consolidated them for half of the last year, and we will consolidate them now for the full year in 2022. North America grew with 141%. That's one of our investment markets. We really want to become a major player in the North American market. As you know, maybe in the IT business, 50% of all IT spend in the world are being decided from North America or North American companies. If we become a player in that market, which we are starting to become, we believe that that will sort of fuel the business even to higher levels than we are today. We added over 200 new customers or premium brands in the Saudi mandate in Q4. Everybody thought, "Why are you going to Saudi?" Saudi introduced a mandate. We were there. We could deliver. We could deliver on Saudi soil, and we could also see to it that these 200 new customers, they can also use us in the rest of the world. They just didn't just pick us for our ability to do the Saudi mandate. They also picked us for the ability to be able to support them throughout the world where they have operations. Of course, we are continually investing to increase market presence. We are not in sort of a harvest mode when it comes to the business we're doing. We are in the mode of seeing that we will develop and grow this business in all the aspect of being a global player. Our real aim here is to see that we become one of the three largest in this business that we are in. Strong growth in ARR. I know that a lot of this business that we're in are focusing on ARR, and we are of course having a target that we're gonna have in 2025 an ARR of SEK 1.5 billion. We are on a good track on that. We are getting there. We had a growth of 41% on ARR. If we look at the contribution we also got from Gosocket, which was the company in LATAM that we acquired. Gosocket, I would like you to understand that if we hadn't acquired them, they wouldn't have grown that fantastic they have done. Brand spillover is an important part in this business, and we are now slowly but surely introducing some of the Pagero ways of doing things in the Latin American market. Gosocket will also end up being a Pagero company in all aspects. That means not that we're gonna not use what Gosocket are good at. We're gonna take those good things and put into the product line of Pagero and see that as we get technology and knowledge spillover into the product suite that we have here in the old Pagero part. Gosocket are Pagero and will become Pagero 100%. If we look more at this, you could say that One Connection Global Reach, as we have sort of said, is something that is really driving the market and market penetration. If I am a large company or a midsize company operating in five, 10 markets of the world, I really wanna have a product that can make life easy for me. Someone taking the responsibility to see that not only that I can connect to the fifth corner, which is the government, to see that that works. Also someone that globally can really see that I get my co-connections into the world of suppliers, the buyers of this world, and it works. I wanna have someone to talk to, someone that really takes this responsibility and takes this seriously. We do that at Pagero, and that tagline really fits us and fits the way we're driving the business. We can continue with looking at that. EBITA. We have chosen EBITA to tell you a little bit where we are going. We have said that 2025, we're gonna have an EBITA level of 20%. Why have we chosen EBITA? We have chosen EBITA because it's a more correct way than EBITDA, because in the IFRS 16 that we are running, if you don't do EBITA level, you sort of take away some of the cost and if you just check it on EBITDA level. We have chosen that level. We think it's more fair. It gives you a more correct view of profitability. If we look at that, 90% of our regions, that's Nordics, DACH, and LATAM, have a 30% EBITA margin. What are we doing in the rest of the world as we are going minus on the EBITA margin in the group? We are investing. Where are we investing? We are investing heavily in North America. We are investing in Middle East Africa. We are investing in Austria. We are investing in some other markets that we think are especially interesting for the future. Not Austria, Australia, sorry. Australia, New Zealand. We are passionate about really seeing that these regions will be mature markets going into the 30% EBITA margin level. It takes some time. This is, in a way, a slow-going animal in a way, but it's very predictable and all the revenue, 89% is recurring. By building the base and doing it in a proper way, we will build a foundation for a great operation in whole. I want you really to understand this, that when people say that, "Oh, are you gonna be able to do this? Do you need extra money?" We have sufficient cash to develop this operation. We have sufficient goals to set that we have set to do what we wanna achieve. Of course, if we want to acquire something, that's another ballgame, of course. Then you will know about it if that happens. Yeah, that's it. Customer base, that's the key. We are growing the customer base. We got 20,000 new customers in LATAM through Gosocket. We have grown also with 10,000 new customers in our own base from 2020 to 2021. We have a 61% growth. Our partner strategy is worth naming. It's based on the fact that we are having partners. We like partners. We're not gonna compete with our partners. We have a technical connection with our partners. We have a business connection with our partners or agreement. We have 37% of our sales have been initiated by our partner network. This is growing day by day. We have invested last year in a very strong organization to really see to that we can service our way. I think you will see a lot of results of this in this coming year going forward here. I talked about Saudi Arabia before. It's interesting to see what happens in a country when they develop legislation. This is phase one. We are entering into phase two now. We are well established in that market. We also believe that a lot of the countries, neighboring countries to Saudi Arabia, will also impose a regulation going forward. We are well positioned to be one of the players in that game, so to speak. Underlying growth in customer base. Transaction volumes are growing 26% year-on-year and 26% in Q4. The customer base and the transaction volumes, it means that we sign a customer. Until they get up to speed, it takes some time. Of course, they start with the country. They add other countries where they're operating, then we grow. They add other message types. They go from invoicing to orders, to transfer messages, to payment messages. They go to the other service packages that we have, where they can sort of look at certain things and do things with data, whatever. All these create transactions. Our business, as I mentioned before, is based on the fact that we have, one, of course, transaction revenue stream, but we also have fixed fee, a yearly fixed fee that we charge for being part of this network. This is important that we follow. This is without Gosocket, I should say. Gosocket has clearance transactions, which are. We have over 500 million clearance transactions in South America. We will in the future also show that more exactly how you can see the business between clearance transactions and business to business transaction, or you can separate those from each other. That is coming down the line, but that is also developing very well. If you look at net sales and strong growth, out of this revenue that we have now in 2021, SEK 441.8, 89% of that is recurrent going into 2022. The gross margin is 87%. As you see it, when you go into the next year, you know quite a lot of the business is following you into next year, and that gives a lot of security and safety. It is of course, as we are running IFRS, the business is growing more linear, more slowly in a way, because we get an invoice for it or we invoice someone December 31, we only get 1/365th of that fixed fee for the next year that day. The rest is coming periodized over the next year. Strong underlying business model, strong recurrent revenue. That's what we wanna say with this slide. M&A, Gosocket was acquired in July 2021. We are very happy with that acquisition. We are very happy with the management that was there. We asked the team that was there in place to continue with what we're doing. We had some resources from Pagero organization. They've done an excellent job. We are now in 13 Latin American countries, and we are looking at how we can grow the business. There are countries there that are really interesting for us to become bigger in. You can take Mexico as an example. If you look at the Gosocket, our LATAM operation grew with 24.5% year-on-year in 2021. A lot of that was, of course, that the economy started to accelerate in some of the countries in the phase of what happened in the pandemic. Yeah, that's good. How do we do M&A? We look at either should contribute to geographical expansion or network expansion or functionality expansion. At least one of these has to be sort of tick box on, otherwise we won't do it. We will and are continuously scanning the market after possibilities where we can sort of either add network, that we can buy networks and sort of into include them into the Pagero network. There are functionality expansion where we can add on something for the data streams that is in the network that will contribute for all in the network, and we can sort of scale it by selling to everybody in the network. Geographical expansion, of course. There are countries now that we are looking at, especially the connection to governments, the fifth corner, so to speak. When we come into discussions like that, we need to understand that do we wanna do this from a global perspective, or do we do it from a global and local perspective? You can think about it. Operating globally, assisting global companies to do service in India, for instance, is not a problem. If you would own a local business in India, we need to do a different setup, of course, for the local bakery in Calcutta, for instance. That's another business, you know, so we need to take that into consideration. We are looking at all these things, and we see that there are great opportunities all over the planet to grow. Regulatory highlights last year, to give you the feeling for it, the feeling is that this landscape is changing. There are countries like Italy that had it for a long time. They have now put a mandate into place for cross-border invoices starting July 2022. That means adjustment to the platform. It means that all companies doing cross-border invoices have to report it to government, and it has to go through somewhere. Someone has to do it, and we are sort of setting out the functionality in our platform to be able to solve that. Saudi Arabia, phase one. Up and running. Latvia country, Poland coming now, and Panama coming. As you see, this is a landscape. It's changing all the time, so it's very important for us that we are at high alert and see that we can adjust the application for our customer's sake. The customer doesn't have to think about it. They can continue to sell in Saudi, Poland, Latvia, Italy, or Panama without thinking about these administrative issues that we take care for them. We think that that's really important that we do that. To give you a little insight into the development in Q1 2022, we had a strong last year. We had a strong ending of last year, but we also have a good start of 2022 with over 130 new contracts in January from leading businesses in tech, aviation, manufacturing, public sector, and technology industries doing not only invoicing, doing orders, doing transportation messages, doing payment messages. You will see more of that when we launch our Q1 report for 2022, where we really will try to explain what we do in the aspect of course, network growth, in the aspect of med tech, in the aspect of the I talk about healthcare, in the aspect of logistics, in the aspect of also what we do when we come to payment business as a whole. Polish operation has been established. We have our own operation. We have our own team there now in place, and we are starting to develop the Polish market, an important supplier market for the European industry. Just a funny thing, we got Government of Malta signed a three-year agreement to Pagero for provisional e-invoice service for all public entities. That's 1 out of 195 countries that have decided to go Pagero. We will try to get the other ones also. Thank you very much. Thank you for listening. Okay. Thank you, Bengt. I will also add you to the screen as well, and we will start the Q&A session. First question, looking at the 30% EBITDA in your established market, as you mentioned, and you say that that's 90% of the revenue, this implies you take a significant cost in your other markets. Will these significant costs continue or increase in 2022, or are most of the costs taken? Most of this cost is related to people, so the cost continues. We have built the organization now, so we are at the level you wanna be. Why I'm a little bit, you know, hesitating to answer you correctly here or straightforward is that we have the North American market that we are looking for expansion, and we all want to grow that. There is also a great sort of opportunity there. We will see if we will increase cost there to grow that market further. We have companies like. We have a lot of companies in the med tech industry. We have companies like Microsoft using us. We have a lot of others. We really look forward to see how we're gonna do in North America. If to go back, we are slowly but surely moving in market by market into the we can call it the profitable segment of the business, so to speak. Yes. Okay. Thank you. Can you walk us through the growth of license revenues and transaction revenues? Does Gosocket only come into transaction, or is it split? There is a split, but Gosocket is more transaction-oriented than Pagero. There are license parts in that revenue stream also, yes. There is also a little consulting revenue stream, but that's sort of the same level as we have in the Pagero, old Pagero world also. Yes. Okay. Next question. Could you provide a bit more color on the expansion spend roadmap? For how long should we expect OpEx to grow faster than net sales? I think that you will see that we will be in the same level this year, 2022, and then you will see it going more to a lower sort of part of the whole business. If you look at it, the OpEx part, I think we will see the OpEx being sort of more in balance with the revenue stream going into 2023. Yes. Okay. Thank you. If we look at your growth strategy, it's not self-financed, so to speak. How will Pagero finance the expansion and the growth? When we did the rights issue in Q4, we sort of got SEK 500 million from the shareholders. That's part of the plan that we have. We're not gonna use that. We said that we're gonna use half of that for acquisitions and half of that for delivering according to plan, and that's what we are doing at the moment. We believe in 2025, we have delivered according to plan, and then the whole company group will be into balance, and we will deliver an EBITDA of 20%. We're there. Okay. Thank you. In December, you communicated that Amazon have chosen Pagero for automated document processing. How have that work proceeded? It's going very well. We have had a good partnership. We have been looking at their processes. They are looking at ours, and we are now in this quarter launching that together in, I think it's, I'm a little bit unsure, but, I'm thinking it's in five European countries. Okay. Would you say that this, like collaboration with Amazon have opened doors for this type of solution with our other companies? Yeah, I mean, all the business we do, I mean, we have Amazon, we have Microsoft, we have LinkedIn, I mean, when it comes to brands, we have fantastic brands in our portfolio, and all those brands open up, of course, doors for other ones to believe that we're delivering something. And of course, that's a result of that they sort of buy into our story that we sort of are delivering a superior platform for the growth when it comes to digitalization. I would say that's the answer on that one. Okay. Thank you. Yeah. You mentioned there the regulatory demand for different countries. I assume that the regulatory demand for e-invoices will be very beneficial for Pagero. Do you see any other regulatory demand where your services will benefit? Oh, definitely. I mean, Italy now is introducing us for orders. There are countries that are discussing delivery of payments, I mean, salaries, salary statements. Yeah, or not countries, there's regulators looking at KYC. All these things are suitable for what we are doing. You know, onboarding a supplier, know your supplier, all those things, you know. The Pagero world is sort of, when it comes to functionality that is sort of asked for, is growing all the time. Okay. Thank you. Next question then. When do you experience positive cash flow from operations, including investments in R&D? You could say we have positive cash flow from operation today. We are, as you all know, spending a lot in the R&D field because we think that's the core of this company. We think that's sort of the soul of this company. We think that it will also give us the new products that will sort of make this company live for a very long time. To be very a little bit careful here, in 2025, EBITDA level of 20%, EBITDA level, we will be profitable in the way you're saying now, at the moment, cash flow-wise. Yes. If we look at the R&D costs, will they continue to be high since it's such an important part of the business, or do you think that they will plan out, so to speak? Today, R&D cost is 26% of our cost base, or our revenue stream, sorry, our revenue stream. We believe that will come down lower than 20%, but that's not because we are lowering R&D, we are increasing it. It's because our revenue stream is increasing. Okay. Thank you. Could you share any info regarding churn rate in the business? We had last year 2.8%, and that's mostly companies that are sort of small companies going belly up, I would say, for some reason. Could be the pandemic, could be everything like that. In general, it's very good. It's very strong. We have very little, very low churn. Okay. Thank you. You mentioned the, in the presentation, the recurring revenue. Do you have any targets for how much of the business that should be recurring revenue if we look a bit longer out, so to speak, a more long-term target? I think that over time, we will see transaction volumes growing because people are utilizing digital traffic more and more, and that will make the recurring revenue part grow. If it gets to 91% or 92% of the whole business, that's hard to say. It will grow a little bit. Yes, it will. It's pretty okay as it is at the moment. Okay, great. Thank you. That was the final question for this Q&A session. A big thank you to you, Bengt, for the presentation, and thank you all to our viewers and to all of you who have sent in questions. I hope to see you again on the next presentation with Pagero Group, and I wish you all a very good day. Thank you. Thank you, Kristofer.