CombinedX AB (publ)

Varmt välkomna till CombinedX kvartal 3 rapport. Jag heter Lasse Engström och hjälper till rent tekniskt att allt fungerar och presenterar även föredragsordnaren Jörgen Kvist. Enkla regler är att vi tar ett upphandlingshit efter presentationen med frågor. Please raise your hand if you have any questions. With that said, I would like to introduce the speaker of the day, Jörgen Krist. Welcome.

Thank you, Lasse. Welcome to our investment presentation for the third quarter of 2024. You who have followed us know that in the second quarter we talked about a weaker market and a weaker investment. Unfortunately, this has also affected the third quarter. We see this partly by the fact that our organic growth was low, minus 2.1%. Note, however, a very strong growth of 27.5% in total when we calculate our acquisitions. And we also have a movement margin that decreases from 6.3% in the same quarter last year to 3.1%. Here you will also know that in the third quarter we normally always have the worst quarter of the year with the summer holidays we have. We have what we think is an unsatisfactory profitability. And then you can wonder, what are we doing about this? We can divide the measures we do into two parts. We have operational measures in our companies and businesses to increase investment. First and foremost, it is about sales activities, but it is also about balancing our research. From time to time, we sometimes carry out certain strategic measures to focus our resources on the right electricity market with the right offer. Where do we want to be on the market and where do we want to invest, allocate our resources on? And which brands do we want to build up? Because Combined X is about building leading brands. And now, last week, in our world, we announced quite a big news, namely that we are putting together our company Aspire with Ninetech. And at the same time, Aspire's business is expanding for a long time. So this will go under the second category, strategic measures. And one can apparently believe that these companies were quite different, or are quite different, but It hasn't been like that. These companies have cooperated historically, many times, because they have the same basic system development competence, but have packaged and gone to the market with that competence in different ways. where Ninetech goes to the market with its basic competencies in system development and connects it to software platforms to optimize sales and marketing processes for its customers. And that differentiation has proved to be successful. We have built up a very nice business in 9tech, which we are now strengthening with Aspire's heavy system development competence. And in that way, we believe that we will get better development on this fine competence that we have in Aspire. At the same time, we highlight our Aspire's business called Borlänge. It is connected to a customer called Transportstyrelsen, which we have had for many years and where we have invested a relatively large amount of money. We have had an income of about 40 million SEK. per year for that customer, but the margins have not been as strong. And now when the Transport Board went out and made a new deal, we didn't really feel like we wanted to be part of the price pressure that was on this market. Instead, we found a solution where the new Ramantoss supplier, Tonsil, takes over the employees in Borlänge. And we think this was a very good win-win, both for Transportstyrelsen, who can continue to work with these good consultants, for the consultants who continue to work with this customer and where we ensure working conditions for them, for Consid, of course, and for us as well, who have found a good way to do this for us. A win-win for all parties. In the short term, we will lower our revenues a bit, but in terms of moving margins, we believe that this will have a positive effect over time. This means that we have a new company map, as we usually call it, when we look at how our companies are positioned, where they are and what they are. Now, before 2025, we will have six companies, six brands. Six leading brands. They are in three parts of the market. On the left, we have sales and customers, 9tech and Appsfront. We have a number of platforms that we work with, where we are very strong. Optimized Lean River and Microsoft Dynamics. And within ERP, the BI automation market, we have three companies, Elvenight, which now goes together with MTCS, Tu and Netgain, and a number of platforms that we work with. And then we have our infrastructure and security management, which we have gathered in the company NetHouse. You who have followed us know that we have a vision that we call 2028, and that we will be eight leading brands. And here we have six, a foundation for this vision, in these six companies. 9tech, Appsfront, Elmira, Toolnetting and NetHouse. And we think this feels like a very good base to go into 2025, forward to 2028 with. Okej, det var det strategiska. Sedan brukar vi på de här kvartalsrapporterna visa ett antal stapeldiagram för att man ska kunna följa vår finansiella utveckling över tid. Här ser vi resultatutveckling kopplat till vår rörelsemarginalmål som är 10 %. Det levererar vi som sagt inte. Vi ligger LTM nu på 8 %. Det tycker vi som sagt är för lågt. Vi ska tillbaka till de här 10 %. When we look at our costs, we usually divide them up. You can follow how our costs end in relation to our revenues. Then it is so that when our investment goes down, then all of these costs that are relatively fixed, they increase as a proportion of the revenues. So it's about staff and direct costs and time. Here we can see our income development. As I said, Q4 is always dipping, because we have the semester months. But we have a five-year figure of 18% and, as I said, a strong growth of 27.5% in Q3. Here we also see the rolling 12 months, and here we see the adjusted income margin, LTM, which has unfortunately fallen below 10% and will go back up again. Here we see the number of employees and revenues per FTE and the cost per FTE. We see that the staff costs have increased. It is also a consequence of lower revenues. And we exit Q3 with 593 employees. That's actually two less than the start of Q2, despite the fact that we have taken in 16 trainees. It's about balancing our costs. We have some trainees, or we have a sustainable replacement recruitment in the company, simply because of the market situation. The cash flow during the period has been somewhat negative, but on the marginals we have made quite large amortizations during the quarter and went into the quarter with a strong cash flow, went out of the quarter with a strong cash flow of 92 million. And we still have a very low net investment rate at 0.3 times EBITDA. En stark balansräkning. Avslutningsvis så visar jag en bild från vårt kvartalsträ, eller vår höstkickoff, som också var en kvartalsträ för det andra kvartalet, som vi hade i Karlstad nu för tredje årets rad. I år var det tema rockstjärna och väldigt många av våra medarbetare hade kört ut till Hårdrockare, vi hade väldigt trevligt och den känslan som vi fick där var ju egentligen bara bekräftade i att våra medarbetare trivs i sina bolag och trivs med varandra och har kul ihop. Vi har ett EMPS på 58, det säger egentligen att vi har väldigt många av våra medarbetare som ambassadörer och kan rekommendera oss som arbetsplats. And we are very happy about that. And at the same time this autumn, we are also doing a joint customer survey, which shows that we have 1 PS on 53. So it feels very reassuring to go into the coming period and feel that we have satisfied employees, satisfied customers. And now we are going to work together to also come back to a healthy salary. With that, I leave up for questions.

Yes, Fredrik Nilsson has the floor.