iZafe Group AB (publ)

Varmt välkomna till ISF-grupps vd-intervju för andra kvartalet 2025. Med har vi mig, Marius Hamberg, CFO, och Anders Tegeström, CEO. Hej Anders! Hallå där, Marius! Vi har ju haft en väldigt spännande period här, och vi är väldigt taggade båda två på att presentera vår exemplarsupport nu. Och kan du inte ge oss lite highlights, Anders? Vad är det som har skett i den här tiden? First of all, it's been an exciting and fun year. If we just look at Q1, we've increased ARR by 30%. And if we look at Q2 last year, we've increased it by 250%. And we've reached an important milestone that we've been fighting for a long time, that we have 1,000 dozels that we're factoring for. And that's what somehow builds up the value. And then we've also had other strategic... And now it's all about seeing the demand for our product, both from our partners and our partners' customers. So it's an incredibly exciting phase we're starting to enter. And now it's clear that everything we've struggled with is starting to give some kind of division. Very interesting about the different parts. But even though we have had this positive development, we still don't have a positive result or cash flow. When does it turn around and what does it look like? That's a reasonable question. If you look at it, our business model is based on recurring license defects and that's what we need to build up. That's why the 1,000 is so important. And what we have built up is that our partners have gotten many customers and our customers need to increase more. That's what adds to their future cash flow. If we look at last year, the cash flow improved a lot. We went from minus 4.2 million to minus 1.7 million this quarter. We're working towards that, and the more units we have, and we will soon be cash flow positive. We are still working towards doing everything we can with the organization to get there before the end of the year. You mentioned a little about cash flow positivity. We can see in the reports that we closed in June with 825,000 SEK in the cash flow. How long does that last and what does it look like? In the quarter, we have received 10 million SEK capital in the targeted mission we did. And based on how we do now, we expect to be able to handle the cash and we will also be able to invest a little more linked to the 10 million. So we continue to invest in growth and delivery, but we have a focus on increasing revenue per customer and improving margins. How does the solution look like? What are the goals of iSAFE and how does the pipeline look like? It's about building the right kind of revenue where every new vessel builds our RR, where we have set a clear goal of reaching 10 million RR before the end of the year. And the more we increase, the more... We have a good margin for the upcoming license detection, so that we can well begin to achieve cash flow positivity. Then we have a good partner model that makes a low margin cost and our partners continue to sell, which means that we don't have to put on so much more cost in the organization itself, which means that when we have achieved cash flow positivity, it will be a very good result in the end. It's very positive, and you mentioned other parts, that it's moving forward. But is there anything that isn't as positive, and what challenges are ICF Group facing in the future? It is of course a challenge to always balance with limited economic resources. We are still a small organization. We are seven in the ISF group. Then there are many more if you count our partners who work with Docelle and all those parts. But if we look at the competitors, they are around 300-350 employees. och har betydligt mycket mer kapital kopplat till det de gör. Men jag tycker vi lyckas med de begränsade resurser vi ändå har. Vi börjar växa stabilt. Here's a question. Longer ahead, when we've shown that Provo Concept has got a good cash flow, we are cash flow positive and we're starting to enter more markets, then you'll see if you take another type of capital injection in the future. But then it will be a clear business case connected to it, where you see that the business benefit gives results on the money you invest. But our plan right now is to grow with the money we have taken in and do it in a controlled way, but still dare to invest in growth. You mentioned Letter of Intent and the Finnish Group earlier. We also know about the other markets, Sweden and Spain. How does that look? I think our shareholders are curious to get more insight into the different markets. Yes, absolutely. If we look at the focus, our partners have built up many smaller pilots and customers during the last period. And all of them are now about making sure that they go into larger implementations. The number of units depends only on the customers. And then it's about getting started. more customers that then increase further. If we look at the different markets, we see that the Netherlands has increased the most, and that's where we also see a very high potential, so the Netherlands is a very focused market. I would also like to say that Sweden has done very well in the form of having a lot of municipalities that have started with Dozell, very happy with Dozell. will want to implement more units. But we also see that there are many municipalities that want to get started with Docelle, where we have many meetings and implementation starts during the year. And we also look at what is very interesting on the Swedish market, Under SKR, there is ADDA, and during the year, Sweden's first national treatment will be connected to medical instruments. This also signals that this is something that will finally start to be questioned, and will make a huge difference in terms of how many medical instruments that are used in the municipalities. So it will continue, and a lot of exciting things are happening in Sweden. In Finland, we have chosen to cooperate with AdSecure, and there we already see a lot of excitement in the pipeline. The Finnish market is a market that I would say has come the longest to the north in terms of the number of automatics that are out there, so it's also interesting to start taking shares in that market. Och sen då det här strategiska LOIT, de medfiningsgrupp, de finns i 28 länder i Europa. De är intresserade att hitta ett avtal hur man kan få ut Dosell som implementeras i deras system till deras då... companies within the group. And there we will strategically need to look at which markets we should start with and successively go in and see the markets. So it's absolutely a lot of excitement that's in the pipeline and that's the challenge as well. That we are seven people who are going to make sure to handle all this, do it well. But I have an incredible team that everyone is dedicated to and I like this. the entrepreneur and startup feeling that everyone in the company has, and everyone is willing to raise their arms to make sure that we succeed. Thank you, I've been keeping up with you since the beginning. It's been an incredibly fun journey and I think there's a lot left to look forward to. But above all, where we are today is very, very fun to see. And actually, the last point is a little bit about that we have gone out and said that we will reach 10 billion in ARR by the end of the year. And what does it take to get there? And can you give the shareholders a little insight into how we are doing? No, but it's really just to make a clear plan for what I've mentioned. Everything that's happening in both Holland, Sweden, Finland and also Spain. So it's absolutely demanding. We are, again, very few who are going to do a lot. But we have a good, dedicated team and artists. And we dare to stand for this, quite simply. So it's just to raise our arms and go for it. And what is the best that the shareholders can bring with them from this report and this period? And what can they look forward to? What is the last thing they need to think about? The most important thing is to understand that now we are starting to scale up. We are starting to increase our return on license income. And that is the one that in some way is what we have fought for. And that is what gives value to the shareholders over time. And that is also a prognosis with 10 million ARR now. And then it will increase quite strongly. And the hardest part has been to get out the first base, then it will grow quite quickly, because it spreads, more customers hear that this is good, want to buy more, and more existing customers want to increase more, and we also see that this with the medical system that Thank you very much, Anders. We hope that all shareholders have understood ASAPort 2 a little better. Thank you very much. Thank you.