Hello, welcome to today's webcast presentation with the Pagero Group. With us today presenting, we have the CEO, Bengt Nilsson. My name is Martin Westerlund, and I'm from Finwire. If you have any questions for Bengt, please use the form that is located to the right. With that said, I'll give the word to you, Bengt. Please go ahead. Thank you very much. Welcome, everybody, to this presentation of a strong Q4 in Pagero's history, and also of course the 2022 numbers for the year. I wanna remind you about that when we, five quarters ago, raised money to do an investment phase until 2025, we did that in the aspect that we were gonna do that, and we're gonna invest continuously to be one of the global leaders to build the world's largest end network when it comes to B2B transactions, and that is what we are doing. We're executing on that plan, we are following that plan, and we will end that plan in a good manner. I wanna present to you where we are at stage at the moment, and then I'm happy to take questions from you. Thank you. What are we doing? We are building a network, the world's largest network for open network for digital business communication. I think you I can remind you about the days when telecommunication was here, when there was a lot of entities, a lot of networks in the world, when you had one mobile phone to each network. It was sort of a tedious process to communicate with networks or communicate with anyone that are connected in the network. What we are doing, we are bringing all this together seeing that multinationals or Tier 2 companies or anyone that are trading globally can access anyone, anywhere in the world do the messages they need to perform their business in a very efficient way. That is all what network is about. This is a tool to should be open, it should be open to everybody, it should also be have the ability to take all business messages, not just a few of them, and that is Pagero Online. Our people has done a tremendous work in Q4, both from an R&D perspective, from a delivery perspective, and from a sales perspective, and we are performing according to the plan we have laid a couple of quarters ago. If we look at it, we are connecting governments. We're connecting governments that have an infrastructure that they are complying companies to, comply to, of course. They say that we have a legislation, you need to connect to us, you need to report it, otherwise you cannot send invoices in this country. This is all over the world. This is spreading. We will now see that, we foresee that in 2025, the majority of the countries of the world will have that compliance. We are preparing our product to be able to deliver this, and we do that because our customer is demanding it. With one single connection to Pagero platform, you can connect and do your business anywhere where you operate in the world, and that is our offer to the market. If we look a little bit at where we are, we have 30 office today. We have built out not only the product to support us all over the world, we have built out also the organization. It's important to understand that this goes hand in hand. If you don't build organization, only product, you will lose. If you build only organization and no product, you will also lose. You need to do this in a very strict and planned manner. If you do that correctly and do that in a good way, you will be one of the leaders in the end, and we plan to be that. We have over 700 people in the organization employed today. We are in 30 countries with our own offices. We are also having over 85,000 customers connected directly to the platform. We can also roam, so we can also connect over 14 million companies in the network at the moment, growing as we speak. If you look at this map, we have R&D centers in Sweden, we have R&D centers in Germany, in Sri Lanka, we have in Mexico City and Santiago. All these people at these places is continuously developing the product to see that we will be in the leader position when it comes to technology. This is a technology race, but it's also a organizational race to be able to perform for the large companies of this world, the mid-range company of this world, so they can sell their products wherever they are on the planet. If we look at the numbers, 2022, we have the target that I said for SEK 1.5 billion in 2025, with a EBITDA margin of 20%. We are heading that way. We are going that way. We will see during the 2023 that the numbers will go closer upwards to the profitable levels in the group. It will turn during the year, but it's also according to the plan we laid. It's very hard to build a building, have tenants in the building before you built it. We are now building the building, the building are getting up all over the place, and we are getting tenants all over. The interesting thing is that our customer base, our loyal customers is buying most of we do. When we come with a new country, most of the guys exporting in that part of the world will use Pagero Network for their business when they wanna trade. If you look at it, net sales growth, there was some non-organic growth, and this is 36%. I will come back to that. ARR growth was 27% in the year. The recurring revenue, 87%, strong, and 87% gross margin. All these numbers are good, the customer churn is very, very low, which is a sign all that we are doing a good job and our customers like to work with us and continues to work with us. When it comes to the EBITDA margin, it is negative, but it is deliberately negative because if we do not invest in the technology today, if we do not invest in the organization today, we will not be the leader in what we do tomorrow. I think a lot of companies now are focusing too much on the EBITDA margin to sort of say that, "Oh, we are very good at saving money." We could easily turn this company into a very profitable company if we stopped investing. If we stop investing, we will sooner or later stop growing. I think this is important for everybody. Everybody likes a company that wants to take the chance to become one of the leading vendors in this field. The sector needs to be safe and understand that investing is part of the whole game. If we look at this from a other point of view, the Q4 was a purely organic quarter, where net sales amounted to SEK 169.6 million. There was an organic increase of 26%. That is good. ARR amounted to SEK 604 million+, an increase of 27%. Okay, people can say, "We lost some money." Yes, we did. What did we do? We prepared the platform, we prepared the technology for Japan, for France, for Germany, et cetera. We do that deliberately. We don't do it because of chance. We do it because we know legislation incoming. Our markets will quadruple in the coming years, and with the excess market we have possibility to address. I think we are doing absolutely the right thing. Of course I do that. If not, I wouldn't run this. Anyway, cash flow SEK -1.8. A little bit less than SEK 8.2 it was in the comparable same quarter Q4 the previous year. We have a very strong cash position. We took this money into the company because we want to develop a plan, and I think that that's something that should be recognized. Spain has announced country value e-invoice requirements. It will come now in this year, and we have started to push our plans to do that. We will also see France have also announced that, and I'll come back to this later in this presentation. Sorry. Did we do some wins? Yeah. New logos. If you look at the Fortune 500 companies today, we can record over 50 of those are customers of Pagero Network. They don't use it for their whole operation because it's not compliance in all of their countries they are operating today, but it will be. We hope and think that they will increase their usage of Pagero Network as they time goes by and legislation wins in country by country. We are prepared to do that, prepared to deliver that, and we will do that, all following the plan we laid five quarters ago. If we look at it, we have new logos in automotive service companies, new in electronics company. We are new in the digital infrastructure companies. We are new in the healthcare, the upsells. We have a extremely loyal customer base, I would say. That you see in the sign of the churn. It's very low. They use Pagero, and they like to use Pagero for their business. If we look at the ARR, popular key metrics a couple of quarters ago, it's grown with 27%. K here is also 27% over the period from Q4 to Q4, 2019 to 2022. What's interesting to see, we had some pandemic period here, but if you look at the comparison between Q4 2019 to Q4 2020, it was 15% growth. Q4 2021 to Q4 2022, we had 27% growth. We see now the accelerating movement that is in the whole business, and we will see that coming further on in the coming year. Strong finish in Q4. As I said before, net sales growth was also good in the whole year. We also reported the part in the acquired company that we had in the past. We acquired for the last mile Gosocket in Latin America. A very good company operating in a very, you could say, difficult sector, that is that government is changing all the time, their legal regulations and what they want us to do. We are complying very well with that, and we are growing our business constantly in Latin America. We are happy for that acquisition. We are now integrating our two product lines more and more over time, and we will have a seamless approach to this over time also. We will see that this was very good, and you can, connecting, working in a mid-range company in Germany, for instance, if you do business in Latin America, if you do business in South America, Asia Pacific, North America, wherever you do business, connect to Pagero Network and you will connect it to your supplier or buyer. This is what we are doing every day, 24/7. If we look at growth and profitability, we have what we define as established markets. Our established markets are 87% of net sales. It was 90% the comparable period. We have a strong growth in established market of 18%, and we have an EBITDA margin of 35. The Rule of 40 is 53. It's grown from 44 to 53, we are performing very well, and we foresee a continuous growth of profitability in these markets. When it comes to investments market, which is now 13% of our total net sales, it was 10% in the past, we have a growth of 88%. We also see that it was -296%, now it's -242%. We are heading the right way. We should note that there are some of these countries that don't have legislation. One of them that we are investing is North America. For those that are in the IT business know that 51% of all IT decisions are made of North American companies, owned North American companies, that market is tremendous. We are now open up an office in Minneapolis. We have office in Chicago, and we are now growing our business there in a very good way. We also see countries like France coming to be compliant. We also see that Spain is coming. We see that England is growing the usage. Primarily also a lot of tier one company headquarters in U.K. are now starting to buy and are starting to invest because they see they need one vendor that can help them globally, and Pagero is doing that. We are doing a good inroad in the Middle East Africa and also in the Asia Pacific. We foresee the coming year that we will grow very good in this, all these countries and all these areas. We will also see new markets popping up because compliance is sort of, as I said in the past, spreading all over the globe. EBITDA margin profits. Profits will come. You will see during 2023 turning of our cash flow. We will see a turning of the profit levels and increased. We are heading for 2025, but it would be very foolish of us today to cut costs in R&D, to not do the investment that make it possible us to enter Japan, to make it possible the largest among the largest export markets in the world, to enter tons of markets all over the globe. We are doing that. We are gonna do that deliberately because we believe that that's what our shareholders bought into five quarters ago, and we will continue to do that, and we're gonna prove that that was the right thing to do. If we look at growing customer base usage, we had over 10,000 new customers in 2022. We have a strong growth in revenue and usage from the existing customer base. Our partner community, important to know, we are investing very much and a lot of resources into joining us or partnering up with companies doing ERP system, doing tax revenue systems, doing workflow systems, et cetera. Everything that's supporting the data that is in the network. We believe we're not gonna compete with these guys. We mean what we say when we mean partner operation. We're gonna be totally honest. We're not gonna develop things that incur of their business because we believe they are focusing on what they do. They will do that much better than us. We're working together, integrating so it be a seamless flow for our customers to use all these things in one environment. A proof of that is that 58% of our new sales in 2022 came from existing customer base. That is strong. I know working in the past from the ERP business, and that was roughly around 40%, so I really like to see these numbers here. We see, you see the transaction volumes are growing. We are not calculating our, what we call compliance transaction, which are really huge, especially in South America or Latin America. We'll do that from the coming quarters that so you will have a good transparency in what we do in that sector also. Yeah. M&A, we have acquired during the year R&D operations from Creative Software in Sri Lanka. It was in March. We did that because we had a full control of R&D department that was outsourced in the past. We are investing further in Sri Lanka to grow that team. We really appreciate what we have done there, and it is doing very well. We are also investing in R&D in Mexico City. We are investing in R&D in Santiago. We are investing in R&D in Düsseldorf. We do it also in the Scandinavian market or Gothenburg, in the specific place, and Stockholm. All this to make our product more and more competitive, complying to more markets, spreading the possibilities of us to service our customers in a more wider spectrum than only in certain countries. I know that Scania didn't invest in North America. We don't have such a business that it did in the truck business. We have a business that our customer wants us to support them with one connection to our platform all over the globe. They are prepared to pay a premium price for that because they will have less trouble, less interruption in their operation, and we will serve and deliver that to them. If you look at the world 2022 regulatory highlights, we will see that this is coming now in 2024, which is means that we can sell, start selling already, is Belgium legislation, Poland legislation, France legislation, Japan legislation, Oman, Saudi Arabia. We are in all these places. We will support our customers in all these places. We are now entering Japan, and we will have an office in Japan. We will also are in the phase now of recruiting local staff in Japan to support one of the largest export markets. All these things, the tier one companies knows if they contact Pagero, if they connect our platform, they will be able to source all their traffic independently or business messages they have between their ERP systems in a smooth, safe, regulated, and data protection-oriented way. That means that we are doing this every day, 24 by seven, serving them. We are what I would call a modern telecom network for business to business. That's what we are doing. Far in Q1, we opened up an office, as I said previously, in Minneapolis, United States. We also have our subscription period for our warrant program going out now, 2023, is ongoing and will end in 1st of March. We have today convert, people that will convert for 80%+ of the program, so that's, is going well. We also have press released a joint venture with Thomson Reuters, one of the largest players when it comes to tax compliance or tax engines, I would say, or tax checking of the tax on the invoices sent by the customers are correct. We will spread that program, and we are very happy to see the, how that is gonna be executed all over the globe. I would say that that is all. We are having a high tempo. We are having a high turnaround here when it comes to whatever we do. I want to address to all you shareholders and say we're very thankful for your support, but we're doing our utmost to create one of the largest players in this sector, in this segment, and I really hope that you will enjoy the ride, so to speak. Welcome. Thank you very much and ready for questions. Thank you, Bengt, for that presentation, and I will jump straight into the Q&A section. Take the first question here. Could you give an explanation of how all government regulations driving the market affects revenues and costs/investments for Pagero? Okay. What we do, we scan. We have our compliance department scanning the market all over, looking at what is happening, following regulations. We work with some other guys that are connected to us that gives us insights. We see what is happening in the market. We start adopting the platform so it will support the business message that could be demanded by a local country, a local legislation, so to speak. We implement that, I would say 12 to 15 months ahead of things happening. When things happening, we are ready. We are discussing then if we should do a global support only, or we should be locally competitive. If we're gonna do globally, we don't invest in any local staff, then we don't see that it works, and we service the customer we have in the network. If we go for a local approach, we're gonna be a local competitive player also, we invest in setting up offices, and we are setting up that we can be sort of supporting the market from a local point of view. That is very important when it comes to adjusting the price point. We have another price point if we are locally competitive than if we're globally competitive, of course, in the market. That's how we do it. There are investments. There is always investments in technology, but this is a technology race, as I said. I wanna stress that. I wanna underline that. If you don't do this, you don't survive. If you don't do this, you have some lucky quarters where numbers will go up, but in the end, you will lose. We see that in our competitors, that a lot of them are struggling when it comes to laying off people in the R&D side, not doing the good work there. This is a continuous business. This is a business where we make money, you know, every year. We have a recurrent business model. That is important. This is not one-offs. We work with our customers for 10 years, 20 years, whatever. Of course, that is a much more trustworthy and reliable business than doing one-off businesses. Thank you. appreciate that you're ramping up growth investments, but average employee cost increased 27% quarter-on-quarter. Is there anything special impacting this line? You could say we increase, we increase the cost, of course, of employees, where it's, one is of course the natural labor cost that is increasing for within the IT industry. That's the way it is. Another one is, of course, that we do investments in market prematurely to things happening. We have invested a lot of money, for instance, in the partner operation that we have, which is fueling the business now, and we are working there. Over time, this will be very lucrative and very good when we get all these things in sort of, what you call it, connected to the platform in a automatic way. We will see that the increase in number of people will decline over time in the next coming quarters. We had to ramp up the operation. We had to see to that we could support 24/7. Of course, the volumes, as they are recurrent, are increasing. That means that we will spread out the revenue over less staff, so to speak. Very strong and accelerating organic ARR growth this quarter. Could you highlight the main drivers behind this? I would say legislation. Legislation is the main driver. Legislation makes people understand that digitalization is something we have to do. It's sort of not in demand-driven market in a way. It's more of a must-have market. Well, I need to invoice in Indonesia. I need to invoice in Turkey. I need to invoice in India. How should I do it? Should I do it myself, or should I have someone helping me do it? How can I follow the legislation so I can continue to invoice? All these things are question for people operating globally. When you have done that, you start in sort of a bandwagon where you can look at, oh, what do I do with my order flows? What do I do with my transportation flows, and so on. I mean, we have over 700 hospitals connected in Germany, all doing supply chain with us in Germany for their operation theaters, for their operation when it comes to medical devices. All these things are key things, important things for both the people, of course, that are operating it and running it, but of course also for the guys that are using the stuff that is coming to these places. It is essential. Could you speak a bit on EU's ViDA proposal and what potential that opens up for you? Do you see any direct impact? Yes, we see that already. The ViDA directive is a way of checking that the VAT cross-border is complying to rules. No one sort of asks the government to get VAT back that is not or can't do it, so to speak. They are not have they shouldn't be able to ask their VAT back. It's a control mechanism for governments to increase or to lower the VAT fraud, I would say. We will support the ViDA directive globally. We are already doing most of it, and we will see to that we will comply to the sort of. This will simplify it for companies working cross-border also in their administration. Yes, the answer is yes. What is the timeline for mandatory e-invoicing in North America? That's a special task. We are today in a project with Federal Reserve, some other large companies, to look at the possibility to do a test operation in U.S. between some large tier one companies to see how this could work out. As you know, the devil is in the details, but it's ongoing. We are mostly in U.S. today supporting inbound traffic for automation reasons, and we are supporting American companies operating globally. Over time, we will see that the North American market for... Of course, logical reason, it's a fairly complex tax market, and the way of using then e-invoices, if we talk about only invoices in this case, will automate and will drive efficiency. It will come, but it's not there yet. I have no date. You have about SEK 0.5 Billion o f interest-bearing liabilities and borrowings on your balance sheet, but you do not report any financial expenses. Why is this, and can you help us understand? Okay. When we were setting up the finances for trying to buy the Tungsten operation, we borrowed money from a new entity, so to speak, a new company that was operating in this market. We had a very good negotiation with them, and when we did that, we said that, "Okay, for the next coming years, we don't want to pay any interest-bearing debt," so that is put on the balance and will be paid, I think in one and a half years from... within 2024, I think, summer. I could be more. I'm not all accurate there. That's why it is put as an add-on to the liabilities we have. Okay. Thank you. Do you see any slowdown in demand from the macro backdrop, or should we continue to expect about 20% growth in 2023? I'm not gonna give any prognosis, but you definitely gonna expect growth. You're gonna expect good growth, and I don't see, as I said in the past, this is not really related to us that much. I mean, Of course, if the industry stops working and everything goes berserk, then it will of course impact all companies. In general, you could say this is a must market. Companies need to do these things to get their business going, independently of the economy. Of course, transaction volumes are always there, impacted by trade, and if trade goes down, it could go down, but we see no signs at the moment. I have a total different opinion than a lot of others in this sector, but that's my personal opinion. We can take that another time. I think it looks pretty good. Okay. Thank you. How has Q1 started for you guys? Started very well, very strong. We are bullish about the quarter. We are also bullish about the year. We see that the organization, I'm coming back to that, is tapping in all over the planet. We have nine regions. They're all delivering well. People are doing an excellent job. We believe definitely that we will show good growth, good numbers going forward in 2023. What does the M&A strategy look like the coming year, and do you have any plans for new acquisitions? We have plans. We are looking all the time. We are looking mostly where we can sort of grow our numbers in certain markets. There could be markets where we are a little bit too small, a little bit too light, and we want to become a more heavy contender in there. We are looking at a couple of those. There'll be add-on, add-on acquisitions that are sort of supporting the platform and the network. Yes. Okay. Perfect. That's all of the questions that we got in for today. Thank you very much, Bengt, for being here presenting and answering all of our questions. A big thanks to all of you who followed today for Pagero's presentation. I hope you have a great rest of the day. Thank you very much, and until next time. Thank you.