CAG Group AB (publ)

Welcome to today's broadcast. You are with us at CAG, where we have the CEO Åsa Landén Eriksson and Johan Sundmuss, who is the CEO of CAG Datastöd, who will present the final communication for 2024. If you have any questions, use the form to the right and we will take it up during the question time. And with that, I say the words to you. Welcome.

Thank you so much, Martin and Finnmeier, and welcome everyone who listens. It's great that you have chosen to listen to us today. As I said, I have a special guest here, our very best supplier within CIG Group, our own subsidiary company CIG Data Support, which runs our IT operations and security services and so on. But I will of course talk about our final communication for 2024 and I just want to make a brief overview for those of you who may be listening for the first time. You probably know that we are primarily an IT consultant group with a lot of business knowledge. We have 10 subsidiaries and about 450 employees. We are also certified according to ISO 27001, which is a security certification and we also have the honor of being an appreciated employer for our consultants. So it's short about us, and if you look at the development we've had over the last few years, roughly since we were noted in 2018, we've had a nice growth and a stable and good margin, but you can see that we had a decline in 2024, and I'll get back to that in a moment. I would like to start with a little overview of our segment, because that is a reason why we have delivered a very stable and good result in a market that has been a little weaker, is because we have a very good segment division at CG. where our defense segment is about a third of our income, and it is growing, you could say. Even banking and finance, which is much of the focus for CG Data Support, is a good segment. And you can also see in this picture what we have talked about in the quarterly report for a while now, and also now at Q4, that the public sector has been a relatively weaker buyer in the past few years. We used to be at 50% around the public sector and now we are at 44%. What is good is that the defense sector has grown, even if it has unfortunate causes. And I would also like to point out that we have recurring revenues at CAG, and that is about a fifth of our sales. A large part comes from data support, but also where it is on contract revenues on a three-year scale. But we also have a whole lot of other system development requirements in the company. And we have a fantastic customer base that we have close relations with, so it is also a great strength we have. Med det sagt tänkte jag prata lite siffror för fjärde kvartalet. Det var ju inte jätteroligt på intäktsraden, då det var en väldigt utmanande kalender. Det var en arbetsdag färre i Q4, men det var också tre klämdagar som gjorde att folk tog väldigt mycket semester. Eftersom en hel del av vår verksamhet är timbaserad, eller uppdragsbaserad, på det sättet så drabbar det våra intäkter. About half of it was under-consult revenue and half of it was our own business, roughly calculated. Our under-consult business has a lot of tasks out in the country that are on big contracts that have been a bit of a pressure. But despite that, we have delivered a margin that is close to the previous year's strong 10.3%. It was 9.4% in the quarter. and have also made a pleasant profit per share. If you look at the whole year, it is actually the case that our own business has been completely stable in principle and has not changed in terms of revenue, while we have lost some under-consult revenue even throughout the year. But still, we think of ourselves as a nice margin of 8.6%, and it is actually the third best margin in CAG's noted history. So we have seen a good result for the market. We also have a very stable delivery on the profit side and a very stable position financially with a lot of low reward, good cash flow. bra soliditet och vi ser positivt på framtiden så att vår styrelse har beslutat att föreslå en utdelning som ökar med 20 öre per aktie till 4,10 då. Så att det kan ni som är aktieägare se fram emot här i maj då. If we leave the numbers and talk about what has happened during the quarter, we have clearly started a new initiative within AI, where we are already doing a lot of things, from using AI in system development to offering AI variants, to our e-commerce customers and in many other processes with our customers. So we have started an initiative that will combine business development and business process analysis. Together with generative AI solutions, there can be other forms of automation as well, but the point is to look at large business processes with large volumes and we focus on core processes within banks and finance that we know very well. For example, anti-money laundering processes where there is a lot of data and many analyses and decision points that need to be made. It will be very exciting to see how it develops in the future. A little more boring news is that it has been a difficult market for technical test system development, where we have a small part that works within the industry segment. We have decided on a reorganization and we are just about to end trade negotiations in this area, where we will reduce the capacity, which will give a one-off cost in Q1 of 2-3 million, we estimate, but on the other hand, it will be a margin strengthening from Q2. En del av den här omorganisationen innebär att vi flyttar resurser till andra bolag. Vi kommer att se en ganska liten påverkan på intäkter och antal anställda från och med andra halvåret. Det är lite framtidsinriktat och lite kostnadseffektivitet som har hänt under kvartalet. Det som är väldigt trevligt är att vi fortsätter att ta mycket nya avtal och nya kunder, bland annat ramavtal med regeringskansliet och med Region Stockholm. Lite spännande uppdrag på utbetalningsmyndigheten och på Infront där det är ett handelssystem. Vi pratar inte så mycket om vår säkerhetssida, vad vi har för uppdrag där, men det är ett stadigt flöde av pentest- och DORA-uppdrag här inom den sektorn också. Och som vanligt har vi också tagit många bra extensions and tasks on our faithful returning customers, which we have a lot of, as you saw in the first picture. The Defence Force, FNV, Hägg, Lund, Saab, the banks, always new tasks where we have good trust between us. That's what we're here for, to help our customers to do good things. And with that said, I'm going to leave the screen to the CEO of C&G Datastöd, Johan Sundmo. Welcome, Johan.

Okay, then I'll move my chair in here. Yes, hello everyone. Johan Sundmo is, as I said, the CEO of C&G Datastöd. We... is one of ten subsidiaries and works a little differently than others in that we have service-based deliveries, not as much time-based consulting. And it's about management and use support with a focus on banks, finance and law firms as our largest areas. We also have a certain specific drive of financial systems and a slightly larger company where the capital administrations publish their portfolio systems, SWIFT systems and similar systems to us for Vi har mångårig kompetens och kunskap om drift och med väldigt höga krav. Så en, vad heter det, konklusion är väl att många firmer lägger ut hela sin IT-avdelning till oss för outsourcing och vi tar hela greppet, så att säga, om små och medelstora bolag framför allt. So here you can see some examples of customers. We have a group of AP-fonds, we have some life and pension companies, a whole lot of law firms and a whole lot of investment companies and private equity companies. And then we also have a large number of fund companies and capital administrators. That is the core of our customer base, so to speak.