Cint Group AB (publ)

Good morning, and welcome to the first quarter results presentation for CENT. My name is Patrick Comer. I'm the CEO, and I'm joined here by Niels Boone, our CFO, and we'll be walking through the results of the presentation with you today. So let's get started. As you well know, CENT is the world's largest survey exchange. Our business is to match survey respondents to surveys and to also run a global scale media measurement business, which has been growing quite nicely over the past few quarters as well. Getting into the actual details here, looking back on the first quarter, it was a significant quarter for the business. As you may recall, we announced our three-year strategy plan in January, what we call Sint 2.0, which lays out the plan for the next three years. We also released our midterm targets, speaking to our plans for performance over the next few years. And we also, at the same time, announced and completed our almost 600 million SEC rights issue, well oversubscribed by at least 60%. And we appreciate the trust and the interest from our shareholders in investing into the future of SIN. We also had a significant change in our overall debt. Obviously, with the rights issue and the capital raise and the cash flow from it, we're able to reduce our overall leverage ratio from 2.5 to 2.4, a significant change in the course of the business. Also, what you'll see in our statements is we've had strong cash flow in the quarter, obviously from the rights issue, but also from operating with improvement in working capital and overall profitability improvement in the quarter. We also see, besides just the financial or operational improvements, now we have an ongoing sales trend, which we've seen from a number of quarters, where we've had strong sales for medium measurement, offsetting slightly lower sales in SID exchange. And what we'll say about the first quarter is that this is right in line with our overall three-year plan and is in line with expectations of our overall transformation. What we also see in the quarter is a strong EBITDA improvement. You'll see stronger gross margins in our numbers, but also lower operating costs, driven by cost reductions last year. And finally, we see, as we've been talking about for quite some time, is platform unification and customer migration is progressing quite well. As we state, we have an 81% migration, which is actually ahead of expectations for Q1. So we are currently focused on our largest and most complex customers for migration in the second quarter. And we are very much focused on their transition from legacy platforms for the new Synth Exchange. In terms of the overall financial figures, what you'll see here is net sales of 35.9, slight decrease from last year. On the gross profit side, you'll see 31.4, which is a nice improvement, both in terms of size but also in terms of margin. OPEX, as you can see, has also gone down, both in terms of cost of sales but also in terms of overall costs. This is an improvement which you've seen in some of our cost reduction programs in Q4 and Q2 of 2024. Now, of course, Q1 is our seasonally smaller quarter, which has a smaller EBITDA than other quarters, but we had an improvement over last year in a very nice way. So what we'll see here is that across the board, we see expected sales from how we see the quarter and our three-year plan shaping up, but improvements in gross profit off the exit EBITDA. What we also want to speak to is some of our innovation and our wins in the quarter. Starting on the media measurement side of the business, we were announced as the media partner for the measurement side for several different important customers. I'll highlight Walmart. Of course, my kids love the fact that it's Roblox, Disney, AdRoll, and Teads. All these are important measurement partners of ours, which will allow us to continue to expand and grow that business. We also, in the media measurement side, grew the number of markets that we have available. We added Vietnam and Malaysia, which adds to the total number of markets that we measure in globally to 33, which makes us one of the largest platforms for media measurement across the board. On our exchange side of the business, we also launched 21 different enhancements or improvements. Many of those are associated with migration and SINT 2.0 for the new SINT exchange. The largest and most important, which is what we call CPI boost, which allows our customers to change the price of a survey midfield so they can be competitive both in pricing but also efficient in terms of delivery. All of this is also underlaying in the media measurement side where we have our study creator, which is a subscription-based DIY tool, which is allowing for customers, especially out of EMEA, to grow quickly within our platform. All these areas are significant improvements in innovation. Obviously, a lot of our R&D right now is associated with migration and the release of the Synth Exchange with migration, but we will see more innovation and we'll be able to highlight more as we invest further in the back half of 2025. I'll let Niels talk through these financial targets here.

Yes, so these are the financial targets that we announced in January. So there's nothing new here, but just to remind you all, double-digit sales growth, more than 10%. This is towards the end of the three years, right? So by 2027, 25% EBITDA, then the leverage ratio of 2.5, where we are now at 0.4. So it's actually way below the target at the moment. and no change in dividend policy and sustainability target. I think I'm actually continuing.

Yeah, let's go.