Teneo AI AB (publ)

So, good morning all. The presentation is as always available on investors.artificialsolutions.com. Just as a backgrounder, we are going to market on teneo.ai. So, teneo.ai is our go-to-market site. And Artificial Solutions is, of course, the name of the company that runs teneo.ai. And for our investor site and our publicly traded stock is ASAI. and you'll find the presentation on investors.artificialsolutions.com. This is being recorded, just so you all know. And I'm going to kick off this with today a bit of a different layout. We're going to do a business update just to get back to a bit of what we are doing. And there's been some very interesting development during Q4 on the business side, which I think is important to highlight. We're going to go through that and then move into the numbers and then I go to Q&A as usual. So start off with it's Pat and Fredrik representing. We've now been here for the better part of three years and I come from a background together with a large portion of the other management team in the background from a company called IPsoft Emilia. which is basically in the same space, the same technology space, a different go-to-market space as artificial solutions. And Fredrik, long background in different PEs, but also has worked also as a CFO in software as a service company before coming to us. We've done a bit of a turnaround of this company in terms of strategy, and we'll come into a bit where we are on that journey. From a business update perspective, our vision is that we can experience the world without queues, without keypad navigation, with instant service. And we are delivering on that now. And also what we have, which I'm going to show today, is that we also now have real proof on why it is that we can deliver that better than anybody else in the world. And I do mean anybody else that includes Google, IBM, Amazon, whoever else you might put into that category. What we do is we reduce misrouting in call centers and we also automate call centers. So many of you might have read about Klarna lately, which is a chat bot that responds to requests into the contact center or the customer care center. We do similar things at our customers except of course our customers are older and much more complex environments and also they use voice and that's where really the differentiation comes in. When you use voice it becomes very very difficult and then what's what state was stated here the 99 and a new accuracy becomes incredibly important. I'll come back to that number because that is quite quite an important number. All this gives money to our customers. Our customers are realizing great gains by reducing the amount of people in the call center, but also by having better transactional NPS score. So better scores of would you recommend my company to another company after having talked to the customer care bot. So where are we on this journey that I talked about? It started out with a new management team back in 2021. and we then started with rebuilding the product of SAS product that was rather large re-architecturing of the environment and this then was launched as teneo.ai again the that's our go-to market and we also divested professional services so the company had revenues from implementing which we no longer have in our books so that was a large deduction in revenue at that point And then in the beginning of 2022, so we sold to some large customers in 2021. Beginning of 2022, we took these first customers live and started seeing what they were using the technology for. So this new SaaS platform, so that is something we host for the customer and the customer logs in and builds their solution in that or a partner builds that solution for them. we saw that what they were using this for was what we call open question, and have now productized during 2022. And open question is essentially pick up the phone, understand why somebody is calling, and to a large extent automate that phone call without the need for a human. So make that into what's called an unattended call. We then built the reference stories around this, published those, We focused on the growth in existing customers to make sure that they all became large users of this technology. And that's what we've been doing during 2023. We also set up with tech partnering with the three cloud providers, the three big ecosystems that are out there today. Number one with Azure, and that's actually where I am today. So meeting up with the Microsoft teams here in Seattle. And then we have GCP and AWS. Slightly different tunes on these partnerships. I'll get a bit more into them in the later slide, but very important for us in this space since everybody uses these now in different parts of their customer journey. They use one or maybe two of these ecosystems. Then we also started partnering with implementers or the people that take this to market that help with the staff transformation, but also the tech transformation and largest one being Tech Mahindra and CGI and Valcom. And then the new logo hunting and we started let's say tail end of last year and also this year the big focus is to take us to a cash flow positive month, which is a goal that we shared two years ago. Okay, so partnerships with hyperscalers that I mentioned. Let me go into that a bit more. On the Azure side, we are mostly partnering up on the AI services side, and that's also who the people we meet here. That's mostly for our product and our development. So that means that we, for example, were part of using GPT or what's called Azure Open AI early on in our development. Probably been using that, we're talking about two years. and also launched products during this quarter, the Q4 quarter. We launched some products in that space, which I'll come back to a bit to as well. Google, mostly just that you have to be partnered with Google and we are a partner with Google. We have set up that we are in their marketplace and we're an approved vendor. And the interesting thing with them is that they are not necessarily getting into the contact center, but a lot of customers are still using some of their technology. So we did our first deal in the Google space together at HelloFresh during August of this year. Sorry, August of last year. But that is not a go-to-market partnership. AWS is more of a go-to-market partnership. In the AWS space, we are targeting the customers that are buying Amazon Connect, which is their big contact center platform. So they managed to break in and actually selling large contact center platforms here. Contact center, you could just translate that with a platform that manages all the phone calls and all the agents that pick up the phone calls, and all the automations in that that piece of software, which used to be something you bought from Ericsson and put in a big room, which nowadays, of course, is cloud based. So all of that, we take the market in tidio.ai. We are selling this in the Azure, what's called transact model, meaning that we don't have to negotiate with these large companies on the terms and conditions of the contract. They can draw this down and make this part of what they call their market agreement, their large agreement with Microsoft. So quite an important a way for us to work on the deals that we now have in pipeline, which make at least a part of that deal process easier, which would be the legal part. So what this does is it provides us access to the blue chip enterprise customers. You need to be able to tackle all these three to be relevant for somebody like AT&T and Swisscom. And as you see here, these customers are talking about us. We're talking about, at AT&T, smart home, which is anything that has to do with the home. It's fiber, it's routers, it's alarm systems, et cetera. They have a much higher customer recovery rate, meaning that they don't have to send somebody out to the customer. The customer talks to the system and resolves 15% of those issues without having to send a person out to the actual home of the customer. That's a large gain for them, of course, as that's quite expensive to do. Swisscom have also measured their customer inquiry hotline so when you call let's say 1-800 Swisscom and they're considerably more productive according to the CEO also they've done testing on the transaction NPS and found that it's higher when the bot picks up the phone and resolves immediately versus a traditional approach where you come to you come to a queue and wait for a human and then get your solution so We have a unique relationship with Microsoft in the AI space with part of what's called the AI in a circle, which helps a lot with these products that we also launched during Q4. And the last portion of this at the bottom is quite important, and I'm also going to go into how that can be. But we are the only player today that answers millions of phone calls per month in several customers, where several customers are above a million phone calls per month. We even have one which has a million automated, so unattended, so calls that no human need to take to. And I have an example of that moving into this as well. So it is truly a unique solution in the market today, which of course is what we are now taking to market. with the references and with the stories and now also the proof points which I'm going to show to you. So what I'm going to do now is I'm going to show you, I don't know if you read Telekom idag, but I definitely get those emails and I saw that Tele2 won Customer Care of the Year in 2023. This is a recording of a call into Tele2 and I'm going to put you through the pain of listening to this for two hours and I'm going to ask Fredrik to do a thumbs up if the sound works. I actually think it's not going to work. I need to take off my AirPods two seconds. Now, can you hear me, Fredrik? Thumbs up. Okay, now we're going to try the sound and see if it works.

Did the sound work, Fredrik?

Let's try again.