Good morning, and welcome to the first interim presentation from SmartCraft. My name is Gustav Line, and I'm the CEO of SmartCraft. It's great to be here to present SmartCraft's Q2 results to a wider audience now that we are listed on Oslo Børs. This is our disclaimer that you need to be aware of, but let's move on to the agenda for today. First, I want to give you a brief intro to the company. Some of you know us already, but there are also a lot of new listeners, so hopefully this should be useful to you. After that, we'll look at the quarter highlights and the future outlook for the company before we open up for a Q&A. Please feel free to ask questions and send them in during the presentation. What is SmartCraft? SmartCraft is the leading Nordic provider of software to the construction industry. Our customers are typically SME contractors with between 10 and 100 employees. Some are smaller and some are larger. The construction industry is one of the least digitalized industries and has a lot to gain from digitalization. There are tremendous opportunities, and that's why I joined SmartCraft. With me today is Kjartan Bø, our dedicated CFO. He will introduce himself later. SmartCraft has a proud history going back to 1987. I came on board as the CEO in 2018, and since then we've seen geographical as well as product expansion, both organically and through acquisitions. You can see some of the acquisitions on top of the graph. Our latest add-ons, HomeRun and Kvalitetskontroll, are not included in this slide. Today, we have a team of 180 employees in 12 locations in Norway, Sweden, and Finland, serving around 11,000 customers and 115,000 users. As you can see from the graph, we have a high and consistent revenue growth underpinned by a good EBITDA margin. The construction industry is among the biggest industries in the world, but also among the least productive, which again affects the bottom line. Our solutions are the hub for our customers. They ensure control of revenue and cost and make sure rules and regulations are followed. There are three reasons why we are very positive about the future. First of all, we are in a large underpenetrated market of NOK 10 billion in our existing region. The majority of contractors do not have digital tools to really make them productive. They still use pen and paper, email, telephone, Word, and Excel. Many of these processes can be digitalized to increase productivity. Additionally, the demand for digital solutions is expected to increase by 15% annually. Finally, lately, the increase in building material costs have increased immensely. From March to April, the cost of building materials in Norway increased by 2%. 2% in one month. This accounts for quite a lot on a building project. Our customers need to be in control of both productivity and the cost of materials, and that's exactly what we do. That's exactly why we are in business, helping customers to be more productive. Our solutions sit at the center of how our customers best run their business. In the office, you have the administration and management typically using a rich web client, being in control of the projects and having an overview. The field users use a smartphone to be in control of the use of time and material, checklist, documentations, and so on. SmartCraft also collect product description, prices, and technical data from the different suppliers. We connect with public offices and trade organizations who set industry standards and regulations and require reporting according to predefined templates. SmartCraft ensures that all information and documentation flows seamlessly between the parties involved. Typically, we group software in the construction space into three groups. We have software for the designing and planning stage. That's where you will find well-known brands like Autodesk and Nemetschek. We have software for the construction of the building. Procore is an enterprise player in this place. SmartCraft is the player in the SME space. We have the supporting software, typically the accounting software like Microsoft Dynamics in the enterprise space and Fortnox in the SME space. Fortnox, for example, is a great solution for financial and accounting. Likewise, we are a great solution for companies who want construction software. That's what we want to focus on. That's where we want to be best at. We have accumulated more than 1,000 years' experience in this field. We see several growth drivers in existing markets. Firstly, we are a market leader in a largely under-penetrated market. The market is growing by 15% annually. Secondly, SmartCraft solutions are easy to buy, they're easy to use. We aim to be easy to do business with. We offer the solutions in different packages, typically small, medium, large, where we upsell as the customer grows in complexity or users. This way, we increase the ticket size of each customer. Thirdly, we see a great potential for cross-sell and upsell on newly acquired customer bases. This work has just started and the effects are yet to come, but over time this is a nice opportunity. Lastly, there are several adjacent areas that we have not yet focused on. We will get to those later. This was a short intro to SmartCraft. Let's look at some of the highlights for Q2. We continue to execute well and are on plan with our revenue growth. The IPO was a success, and I'll touch upon that in a minute. I'm also happy to announce the two recent acquisitions that are in line with our strategy, and I'll talk a little bit more about that later. Christian Saleki joined us as a CTO in June. This is a new position, and his job is to focus on synergies and scale for the group. We also continue to expand our presence in several areas, like electro, and we have several initiatives going on in the Nordics. SmartCraft has a very strong sales and marketing engine that we continuously work to improve. Our customers are getting used to digital communication, and we see a great momentum from digital marketing, events, and meetings. A few words about the IPO. We received great interest in the company at the IPO, and we have some well reputable investors like Capital, Carnegie, and Handelsbanken as owners. We've also made some changes to the board of directors in order to increase our expertise in several areas. The success of the IPO has given us a financial platform for growth, so we're very pleased about having all our new investors on board. Being a software company, it's very important to be innovative, and here are some examples of some recent launches and focus areas. We launched a BIM viewer in a pilot version in Q2, and we have received good feedback from the pilot customers. We also launched a new Q&A module at the end of Q1, which has reached 600 users at the end of Q2. We have been working on an international version of EL-VIS for several quarters. This is a solution for electricians, and the version will be launched in Finland in Q3, which we're very excited about. We released a new app for Bygglet in Q2. Bygglet has got a very big customer base and a user base, so it's very important that we have some really good and intuitive tools for those users. We're also working on a Nordic tender calculation solution, which is a cross-group project between Cordel and EL-VIS, and that is going according to plan, and we plan to launch the pilots in second half. Our strategy is to buy great SaaS companies within construction in new and existing markets. Recently, we made two great acquisitions, HomeRun in May and Kvalitetskontroll in July. Kvalitetskontroll will, of course, not have an effect on Q2, but since we are in the middle of Q3, I wanted to inform you about this add-on. HomeRun will strengthen our position in Finland and gives us opportunities for cross-sale. Likewise, Kvalitetskontroll opens up for cross-sales and synergies. Now enough about me. Let me give you the word to Kjartan. Good morning. My name is Kjartan Bø. I'm the CFO of SmartCraft, and I'm excited to be here presenting for you today. In Q2, we have a strong growth, and we have excellent metrics. As you can see on the right, the ARR has increased by 29%, and the average revenue per customer has increased by 21%. Total revenue growth is in Q2 36%. All of these are driven by our two latest acquisitions. The organic growth is in the top half of the guided 15%-20% level. Q2 is seasonally strong quarter, and the adjusted EBITDA margin is 47%. We are continuing a low churn, and we have a strong cash conversion. As I said, year-over-year, total revenue growth is 36%. This is driven by M&A and our two acquisitions, Congrid and HomeRun. The organic growth at 18% is driven by continuous focus on our recurring SaaS solutions. We both upsell to existing customers and we have new sales. The increase in revenue also affects EBITDA. We have a strong margin of 47%. Apart from Q2 being a seasonally strong quarter, this is a result of business scalability. In addition, we have some planned hires being delayed. As a SaaS provider, we are always developing our solutions. We capitalize development each quarter. In total, we are capitalizing about 6% of our revenue. We have identified two segments in our markets, general construction and specialized construction. Specialized constructions are companies providing a specialized service, like plumbers and electricians. As you can see below, our segments have an equal share of revenue, with general construction is the faster-growing. This is driven by both acquisitions and organic growth. Specialized construction has the stronger EBITDA margin. This is due to the value proposition our solution offer for these specialized needs. If we take a look at our P&L, you see that we have an increasing gross margin of one percentage points. Now increasing operating expenses and a lot of this is relating to both acquisitions and restructuring and IPO. We adjust for these expenses when we calculate the adjusted EBITDA. Depreciation and amortization is driven by the capitalization we do on R&D and also by acquisitions. Currency rates last year had a great impact on net financials. We have no similar effects in 2021, the financial expense is mainly interest on our loan facilities. In connection with the IPO, we repaid all loan facilities at the end of June. We had the IPO late June, and the IPO and the connected transactions impact the balance sheet and the cash flow greatly. As we are a SaaS company with an active M&A strategy, our main asset in the balance sheet is goodwill and other intangible assets. These are financed after the IPO and repayment of loan facilities by equity. Also, we have a large amount of deferred revenue, as the customer pay subscriptions in advance. Deferred revenue is increasing with growth. This is resulting in an increasingly negative net working capital. This gives us a strong cash conversion, and historically, we have an annual average of 110%. Strong profitability, a healthy balance sheet gives us an excellent position to execute on our strategy going forward. Gustav, will you join us for a summary and outlook? Of course. Thank you very much, Kjartan. Let me summarize before we move on to the Q&A. We have several important focus areas this autumn. They are all important and increase our opportunities for growth. Our targets stay the same as communicated at the IPO. We guide at 15%-20% organic growth in the medium term. The adjusted EBITDA is expected to increase from 2020 baseline due to scalability and synergies. With the great market opportunities, our solid solutions, and competent team, we are well-positioned to play a vital role in the construction industry in the years to come. Now let's move to the Q&A session. Okay, thank you. We have a few questions from viewers. One question is regarding the growth in the quarter. If you look at the ARR growth or revenue growth for that matter, what are the most important growth drivers? Could you elaborate a bit on that when it comes to new customers, organic sales, upsales or price, et cetera? Can you say a little bit more about that? Yeah. I think that's a question for you, Kjartan. Yeah. We have both sale to new customers and existing customers. The new customers, of course, being the new solutions and all that comes with it, but the existing customers, they are primarily an upsell of functionality. We have so far had very little price increases, just the normal index regulations. Most of our revenue growth is new customers, and we have a smaller portion to existing customers and upsell. Thanks. There's a question on the EBITDA margin and seasonality. It's quite a high margin compared to run rate in Q2. Can you talk us through seasonality with regards to margin and the business in general, for that matter? Yes. The Q2 is a seasonally strong quarter when it comes to the EBITDA margin. This has much to do with salary pays in Norway. June, as we know, are a season for holiday pays. That brings the EBITDA margin to a higher level than the rest of the year. Thanks. Couple of people are asking about the EBITDA adjustments. Can you be a little bit more specific on that, or what were the main drivers for that? Was it primarily the IPO? It was primarily the IPO. There were also some restructuring expenses, but that's mainly the IPO cost. If you want to add anything, Kjartan? Yeah. Of the adjustments we made in the EBITDA, about NOK 20 million is the IPO, and the rest is acquisition costs relating to our acquisitions. Further, can you elaborate a bit more on the cost increases that you mentioned related to marketing development investments that were mentioned going forward? Yes. I think, like we mentioned earlier on, we have a great opportunity for now that we are on the listed companies. In order to grow and scale, we want to see how we can invest in development and also in sales and marketing. We have a very strong lifetime value-to-customer acquisition cost. It's a very high value, which means that we could invest more in sales and marketing and benefit a lot from that. That's something we're going to look into going forward and see how we should invest wisely in order to get the right results. Would you be able to quantify currency impact on ARR in Q2? No, we don't. I don't have that exact figure, sorry. All right. We have a few more. There's a question on the ARR growth here. When you look at the ARR growth, it is lower than the year-on-year revenue growth. Can you say anything about the effects there and how we see that, how that comes out in that way? Is there any seasonality with regards to growth in revenue/ARR? Well, regarding seasonality, we only have seasonality for vacation periods, so in the summer and Christmas and Easter. Other than that, there's no major seasonality on the revenue growth. The difference in the ARR growth and the revenue growth, that comes down to that we don't only have recurring revenue, we also have a non-recurring revenue. This is training courses, expert services, et cetera. We have growth in all areas, and we have a 94% portion of recurring revenue. Thanks. A few more questions from viewers. You're talking about expanding EL-VIS into Finland. Can you say anything about the market potential for that particular service in Finland? What's the strategy to enter that market? EL-VIS is a great solution for electricians. It's used for calculation and cable dimensioning and documentation for electricians, so it's a very useful tool, and they got a very strong position in the Swedish market. We have been working on an international version, and we are now going into the Finnish market. There are a lot of Swedish people in Finland since it is the second language, so it's quite easy for us to enter into the market. We also got feet on the ground with two solutions and several people in the Finnish market helping us into that market. We also hired people to do sales into the Finnish market. The potential is great. I think the solution is quite unique. There's nothing like that in the Finnish market for the same price and the same value. I'm pretty sure that we will be able to scale and do well in the market. Of course, the work has to be done, but we are very positive. Thanks. You have already announced two acquisitions so far in 2021. Can you say anything about the further pipeline for M&A? Are we likely to see more M&A activity this year? Yeah. We have an acquisition strategy to buy great software companies in the construction industry that fit into the group. That means they have to have the right mentality, the right culture, they have to have the right SaaS mindset. There's a lot of things to hook off, and we want all of those to be fitting nicely into the group. We don't buy companies just for the sake of buying companies. We buy companies because they are strategically right for SmartCraft. We are in a dialogue with a lot of companies in existing regions, but also outside existing regions. We have managed to do about two acquisitions a year. If the right companies come up, we might do another one. It might happen, it might not. Yeah. There's a question on how the third quarter looks, any updates on the market situation and so on. Are there any factors you expect will influence SmartCraft's top line growth in the second half of the year? We're very positive to the market, like we talked about earlier on. There's a great under-penetrated market. It's growing by 15% a year. We don't guide on quarters and half-year. We guide in the medium term, 15%-20% growth. Can you be a bit more detailed on the ARR growth? I mean the organic ARR growth. Also, some are asking about how much HomeRun contributed to the reported ARR. Yeah. We don't specify on our detailed solutions. We have the NOK 260 million total for the group in ARR. That is, yes. Congrid, of course, also is an acquisition which is not organic in related to the ARR. Again, sorry to say, we don't disclose the details on the separate solutions. Thanks. I think we have reached the bottom of the list here. I'm just going to do a quick check of that. Yeah, there are no further questions as of now. Well, thank you very much for spending time this morning. We are very happy to be with you and be able to report on the second quarter, and look forward to meeting you, reporting on the third quarter. Have a great day, everyone.