4C Group AB

Good morning and welcome to this webinar, where we'll take a deeper look at 4C Strategy's second quarter results. I'm Jonathan Juruso, the Director for Sales and Marketing Operations here at 4C, and I will lead today's presentation. With me, I have Jonas Jonsson, our CEO. I will also ask Anders Nogren, our CFO, to take the stage during our Q&A session. And the ability to ask questions is now open in the chat. Please do that. At the outset, we thought that this would be a good opportunity for us also to look at the value we bring to our clients. And Jonas, could you please give us a few pointers on this?

Yes. No, thank you, Jonathan. And good morning, everyone, and welcome to this Q2 call. As Jonathan said, we thought it would be a prudent opportunity to have a little bit of a look at what 4C Strategies delivers. You can see some of it on the screen right now, but then going into a little bit more of a deep dive in the two key domains that we operate in, our public and corporate domain, where we work with corporations and government organizations, and then obviously our defense domain. So starting with our public and corporate customers, what are the pain points for that market today? Well, we can see that there is a complex risk exposure for all kinds of organizations, which is increasing in the security landscape that all types of organizations now actually need to operate in. We also see increased regulatory requirements, and these requirements are not necessarily only targeting large listed companies or multinational organizations. They are becoming more apparent and more relevant for all sizes of organization when it comes to ESG, when it comes to DORA, when it comes to operational resilience in the UK, for example. All of this is coupled with a very low tolerance for disruption, both in the business consumer realm, but also with organization to organization operations in terms of how acceptable are we for disruptions and for loss of delivery of service and so on and so forth. combined with a lack of digitalization and integration. So 4C Strategy's excellent resilience platform comes together in terms of guiding organizations through that process of looking at how do we do this better? How do we become better prepared? How do we look at our internal processes? And how do we take that crisis management team out of the conference room and into your pocket in a digitized way? The impact this delivers is a better prepared organization in terms of knowing what your capabilities are. It improves your decision making and your ability to make those right decisions at the right time with the right information. For senior stakeholders, it provides regulatory compliance and automated reporting in terms of what is it that we have to report on for all of these new regulatory frameworks that is coming in and how do we simplify that process for the organizations. And doing all of this while adding cost savings to the organization in terms of less manual labor, but also then from a longer term perspective, providing that preparedness, which will increase shareholder values and allow organizations to respond in a better way than they would have done otherwise. And this from a business to consumer perspective, but also from a shareholder perspective, as mentioned, will long term significantly increase the value of the company and the way that corporations can operate. If we look at the defense side of the house, very important vertical for forces strategies, obviously, and an area that we see growth in across the world in NATO and our allied country customers, the global demand for a rapid buildup is apparent. This is not only true for equipment, but actually also for the ability to deliver readiness at scale with trained troops and to be able to retake some of that ground which was lost in the 90s and the early 2000s. That comes at the same time as we see an increased cost of military training. The technologically advanced systems that are used, the expensive tools and the expensive weaponry that is used in live training is becoming more and more of a problem when it comes to actually deliver that training. And there is a high scrutiny on defense spending. So the external forces strategies, external training and exercise management system allows defense organizations to plan that training in a more stringent and coherent way. It allows your allocation of objectives to that training to ensure that when you're out in the live training environment, when you're in the field delivering your training, you're getting the highest effectiveness and the highest efficiencies from that training. It delivers more trained units with improved capabilities quicker. It allows greater visibility of that readiness throughout the organization in terms of not only looking at readiness as a whole, but also looking at the individual capabilities of units and how well are they operating and how well prepared are they to deliver on these vital missions, which the Western Defense Forces now stand in for. And then looking at increased visibility of that spending. So as our American friends would say, what's the bang for the buck? What do we get for that investment that we put in all this increased defense spending that is now being delivered by the politicians? What do you actually get out on the other side? Those questions are increasingly asked and using the external training exercise management platform. allows decision makers on the general's level, but also lower in the organizations to provide that feedback back up to say that you gave me this amount of money, I gave you that amount of capability back. So the connection between ROI for training is significantly increased when you digitize training and you build that link throughout and you're able to integrate all types of training from live to virtual and constructive training with a system like the Excellent Exercise Management tool.

Thank you. And for those of you who listened in during the last webinar, you presented, Jonas, your outline for changes in the organization on how to strengthen forces strategies. I know that a lot of this has been actioned. Could you present some of these key actions, please?