BIMobject AB

Hello everyone, good afternoon and welcome to the call. We are just about to start and we're letting the final people into the call. So I want to start by saying if you have questions during the call, you can send them to this email address that you see on your screen, ir at bimobject.com. But I think we will kick it off. So we are gathered today to talk about the Q1 presentation. And I will start off by presenting our host of panelists that you're going to hear from on the call today. So with me today, we have Sofia Hyllén, who is the interim CEO of BIMObjekt. We are also joined by Pia Engholm, who is the chair of the board. Today on the call, we will also be hearing from Daniel Olausson, who's the chief product officer. We are going to have Per Jarlsson with us, who's the CFO. My name is Lisa Norlander, and I'll be hosting the call for you today. So diving into the agenda, we have for you today a short business update where we're going to talk through some of the recent events that we have communicated around. After that, we'll dive into the financials with a quarterly update for you and the numbers that you also have seen in the report released earlier today. And as always on these calls, we end with a series of questions. So again, ir at BIMobject.com is your email address to send those questions to you to us and we will pick up as many of them as we can at the end of the call. You can also reach us at this email at other times so if we don't answer all of your questions today please reach us there. But without further ado I will leave over the word to Sofia and Pia.

Thank you, Lisa. I will start out by welcoming everyone to this quarterly investor call. I'm very glad to be here today. We have a fantastic team that will present information to you. And I just wanted to take a few minutes in the beginning to comment on the fact that during the quarter we made a CEO transition, as I'm sure you've all seen. I'd like to thank Martin for his contribution during a very important phase of the company's development. And we're now entering a new chapter, we are on the path to both validating, implementing and growing a new strategy. We've demonstrated a strong model, we feel like we're on a very solid ground. And we know what we need to do to reach growth. And the recruitment of a new CEO is underway, we are in the middle of that process. And this recruitment will be aligned with this next phase of our growth journey. Meanwhile, the board has full confidence in our great management team. I'm very proud of the enormously positive impact that the whole team is showing. And when they're actively working with our new strategy, I'm sure you've also noticed some of these things already last month. And they are being governed or run by a fantastic interim CEO, Sofia, who set the helm of this team. And we are very confident in this, both Sofia and her group. And we are really, really happy with what we've seen and that they are running this company while we're in the process of recruiting the next CEO. And with that said, I'd like to hand over the word to you, Sofia.

Thank you, Pia. And hello, everyone. My name is Sofia, and this is, as you know, my first quarterly report. If you would ask my team about my most annoying trait, they would say that I'm allergic to buzzwords and that I always want to find the actual message in everything. This makes me sometimes a bit too direct and transparent. All right, let's go. This quarter, we have delivered a steady ARR growth of 7% and turnover grew by 10%, with an additional 1% uplift from currency effects. We have an EBITDA of minus 18 million SEK, which is compared to last year's minus 7.7, a significantly lower operating result. However... This is a cause of two things, our investments in strategic product development and some extraordinary costs affecting comparability. We have decided to take the full costs of the CEO transition in Q1 and also reserved for the social security costs for the upcoming LTIP program. And we have also seen that the positive currency effects that we have seen previously from a strong US dollar is not around any longer due to a strengthened Swedish crown and also weakened USD. We remain in a solid cash position with almost 200 million in liquid assets. With that said, we of course have huge respect for the funds invested in us and are working hard to use the funds wisely, which currently is to invest in growth. Looking at the BIM investment from the outside, I'd say that a new market risk is the uncertainty that the tariffs have introduced in the market. Currently, it does not affect us directly, but we can see the effect it generates in the market, both in the US and beyond. Something, however, that does not slow down is artificial intelligence. And we are also thrilled to talk more later in this presentation about the acquisition of Greenmetrica and Lumia AI platform. And I myself continuously impressed and grateful of the AI features already introduced in our products. as well actually as the usage of it in my own daily work. The construction industry is still increasing in demand and still faces serious productivity challenges. The total addressable market, the TAM, of the global construction industry is substantial and continues to grow. As of 2024, it estimates that the industry's value is between 13.6 trillion and 16.1 trillion, depending on the source and market segmentation, of course. And projections indicate continued expansion. And we are here because we believe that that can be improved and through the access of reliable product data, that that can be improved through the access of reliable product data. I feel confident that we can play a key role in the digitalization of the construction industry through our products and through our position in the market. So, as you can see and read in the press release that we launched yesterday, late in the evening, we have signed a letter of intent with Greenmetrica AB and Lumia AI Platform AB. We have been working together with the team for several years and are thrilled to officially merge and welcome them on board to the group. The team consists of skilled AI developers and software architects who have been instrumental in the development of Yandways. We have worked really closely with them and are therefore confident of the collaboration. With the skills that they bring us, we will also increase the knowledge sharing in the organization, which is actually something that was done most recently at our annual product conference with an AI hackathon. The acquisition consists of two companies, as mentioned. Greenmetrica, which is a specialist consultancy firm, and Lumia AI Platform, which is the AI foundation and the platform used in product development. Their main offering has been to automate ESG workflows, leveraging agentic AI. And what is that, you may ask? There's a lot of buzzwords around AI currently. That is systems which autonomously can make decisions, pursue goals and take actions within complex tasks. That can, for example, mean to gather data, to question that data, make decisions, and complete a task or more tasks without constant user input. This is an enabler of delivering a customized and adaptive product user experience. So now we talked a little bit about the Q1 events, and we will go into a strategic update. The construction industry provides us all with places to live, places to work. And it's currently, actually one, approximately one New York being built every month. And as mentioned, the construction industry is facing challenges with only around 1% productivity growth, which is vastly lower than other industries. And it also contributes to around 39% of all energy related CO2 emissions. So we have a huge potential here. In essence, projects need product information and products need to be specified in projects. And our platform can act as the bridge between projects and products. So the stakeholders in the construction industry and the manufacturers. Let's take it from the beginning. A typical building project can consist of many stakeholders, and here we have mentioned an example. So we have a property developer, mainly active in the construction and commissioning phase, but of course also goes much wider than that usually. A general contractor. around five consultancy companies, so that can be architects, engineers, often heavily involved in the design and planning phase. We also have subcontractors, which all of these previously mentioned stakeholders can leverage. We then have around 500 manufacturers, 6,000 products coming from those manufacturers. And that in the end equals or results in about a million data points. And that is a lot. Today, product data is fragmented, it's siloed and inconsistent. I would say that it is extremely difficult to retrieve product information at scale. That is because it's often scattered across manufacturers' websites, product sheets, multiple databases, and it's also presented in various formats. That could be kilograms versus grams, different units of length, you name it. And it's also so that the collected data is unlikely to be reused across companies. due to each of them using their own software, private libraries and systems, since there is actually no solution of that as today, which is both providing product information and serving that in a user-friendly context. This also means that even though high quality data is found, it also often loses reliability and the necessary details for stakeholders as it is shared along the process. So how do we then want to solve that? We want to connect the products with the projects. At the heart of our strategy is our core. Our core is a centralized, structured, and trusted dynamic data model. And that data model stores, refines, and contextualizes product information, and as well as the interactions around it. This core ensures that product data is reliable, enriched and usable across the entire building lifecycle. Surrounding the core, we have three pillars, compile, consume and connect. We compile structured product data. This means that we are enabling manufacturers to create high quality, standardized and ready to use product data. structured to meet the needs of real projects. Consume on the upper hand of that cycle ensures that this data is not only accessible, but actionable. So we want to make sure that we can deliver the right data to the right stakeholder in the right format at the moment when it's needed. For example, to drive design decisions, compliance, sustainability reporting and procurement. Let's take a step back and look at a few easy examples. In the beginning of the building process in the design phase, you often you need an often generic but can also be specific object with geometrical data. So something to use in in your digital design. while at the end of the project, either during the building process or when the house or project is being built during the reporting phase, you instead need the circularity data and other type of lifecycle data. And then finally, the largest circle around, we connect data with stakeholders across the value chain. This is our platform as a service solution. So we believe that we cannot ourselves deliver all the compile and consume services needed, but we can also provide the platform for other companies to leverage and connect to. So our goal is to be an open source, reliable database, which is at the core of the ecosystem. where we integrate partners, systems, and tools to create this networked ecosystem where data flows freely and we can also actually scale the value. We know that there are several great local offerings and products in the market, and we want to collaborate with them. And this is to get for us a larger market share, higher customer loyalty, and also strengthen our long-term offering. And if you want to get deeper into these pillars of ours, you can also read more about them in the annual report. And we will also deep dive in this in the annual general meeting in a couple of weeks. So speaking of then the compile pillar, we will today get a demo of one product within that pillar. So within Compile, we enable manufacturers to get access to their product information and to provide it in iDynamic form. So we make sure that it can be used for different purposes based on the stakeholder. So today, we will hear from Daniel, our chief product officer, who will give us a fly-in of why the AndoX product is needed and also show us how it can look like. And we have decided to bring this up today also in the light of the recent press release about Greenmetrica and the MIA AI platform. So let's hear it from Daniel. Now we'll play a pre-recorded demo here for you.