Addnode Group AB (publ)

Welcome to the AdNode Group Q3 presentation. During the questions and answer session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the CEO, Johan Andersen, and CFO, Christina McIntosh. Please go ahead.

Hello, everyone, and welcome to our report presentation for our third quarter 2024. I'm CEO of panel group Johan Andersson and with me I have our CFO Christina from Macintosh as well. So we'll be presenting and doing a Q&A after that as well. So looking at the agenda for today, we'll walk you through Q3 2024. We'll finish up with what we believe to be our investment case. Then we'll do a Q&A, and you will also find in the presentation an appendix with some further information around the AdNode group. So looking at Q3, we said it is a quarter with underlying organic growth and robust earnings improvement. The third quarter was strong. It had underlying organic growth. Current suggested organic growth net sales was 3%, and our gross profit increased by 9%. Although the economic situation was characterized by uncertainty, our strong position in segments with structural underlying growth has provided good prospects for upselling to existing customers. This was the first quarter that was significantly impacted by the transition to the new transaction model for symmetric sales of Autodesk software in division design management. Like for like, our estimate is that the group's currency-adjusted organic growth would have amounted to approximately 16%, assuming that all Autodesk sales had been under the old transaction model. Looking at our profit, EBITDA improved by 52% to 200 million, and earnings per share increased by 181% to CEC 073. The big change compared to Q3 last year is that division management has more than doubled its EBITDA due to organic growth and effective cost control. The product lifecycle management division delivered a stable performance in a challenging market. The process management division had organic growth and improved EBITDA margins. We have completed six acquisitions so far in 2024, and I continue to see many opportunities for further acquisitions. As part of our relationship-based process, we are working actively to fill our pipeline with attractive acquisition candidates. Rolling 12 months, our EBITDA is now about 800 million. Earnings per share is now up to 2.83 SEC, rolling 12 months, compared to 2.09 for 2023. Looking at Q3, I'm proud of our employees' ability to land new customers, conduct acquisitions, develop the business, and deliver robust earnings improvement in the current market. So with that and an introduction to Q3, I would like to hand over to our CFO, Kristina.

Thank you very much, Johan. I'm going to take you through a little bit about the breakdown of the net sales. We have two graphs looking at the net sales from two different perspectives. Starting from the graph to the left, we are presenting a breakdown of net sales by geography. We can see here that Sweden has now reclaimed the position as the largest geography at 27% of net sales. And our international expansion into the US market, which you may know that we acquired the Symmetry US and Team D3 in the sign division, that now amounts to approximately 24%. And the revenue from UK is then the third largest, which amounts to 21%. And we see Germany at 11. We also have about 17% coming from other countries outside these four identified. And going to the pie chart to the right, we can see that recurring revenue, which is a continue to form a stable part of our business. It's now up to 74%. And we can also see that the recurring revenue also consists of both third-party sales and also revenue from our own solutions. And service revenue, the second large portion, accounts for 23%. And that is a growth of 3% compared to last year's Q3. And the services consist of both services relating to our software offering and customer specific solutions. And then we have licenses at 2%. And we're talking about the license number going down in favor for recurring revenue going forward. And then I will hand over back to Johan to go through the division's details.