Addnode Group Aktie

Welcome to the Addnode Group Q2 presentation.

[operator instructions]

Now I will hand the conference over to the CEO, Johan Andersson; and CFO, Kristina Mackintosh. Please go ahead.

Welcome to this report presentation for the second quarter 2026. We will guide you through the quarter. With me, I have Kristina Elfstrom Mackintosh, CFO of Addnode Group; and myself is the CEO of Addnode Group, Johan Andersson. We will -- the agenda for today is that we will talk about Addnode Group, our divisions, the cash flow and balance sheet, and we will end with a Q&A where you can ask your questions to me and Kristina. And you will also find an appendix in this presentation.

So we start by describing the quarter.

During the quarter, our business continued to develop steadily, and we have executed cost savings. So what are the key highlights in Q2 2026?

Adjusted organic growth was minus 5%. Reported growth and earnings of Design Management were affected by the renewal cycle of 3-year Autodesk contracts. As expected, this affects comparability between periods, but does not impact the underlying stable development of the business. The underlying organic growth for Design Management was flat in the quarter, as Kristina will explain later more in detail. Acquisitions made in 2025 in Brazil, Canada and Norway continue to perform well. The Process Management division continues to improve. EBITDA is up 26% and EBITDA margin has now improved 8 consecutive quarters. The Product Lifecycle Management division continues to deliver improved profitability and EBITDA was up 24%. Cash flow from operating activities improved to SEK 62 million, primarily driven by a positive development in Design Management.

To increase focus on new sales and fully realize synergies from our expansion, we have done an efficiency program that is expected to reduce annual cost by approximately SEK 100 million. Excluding costs for the efficiency program mentioned and early renewals in the comparative period, EBITDA amounted to SEK 176 million this period compared to SEK 168 million last year. I will come back to more details on the performance of each division, and Kristina will give you more details on cash flow and balance sheet.

Thank you, Johan. I'm going to take you through the net sales development from Q2 last year to Q2 this year. And net sales amounted to SEK 1.449 billion in Q2 2026, and that compares to SEK 1.457 billion last year. And the organic growth, as you just heard from Johan, amounted to minus 11% and the decrease was mainly related to division Design Management. And I will come back into more details regarding the organic growth in Design Management. Also important to see here on the graph is that early renewals of SEK 80 million is included in this graph. Contribution from acquisitions amounted to SEK 158 million and the integration is performing well and the acquired businesses are delivering in line with our expectations. And currency effects in this quarter amounts to minus SEK 7 million, and that's mainly related to U.S. dollar and also lies within Design division where the majority of the USD-denominated business resides.

So I will now hand back to Johan for net sales by category.

Why do I believe that Addnode Group has a solid business and a strong position to grow? Addnode Group provides mission-critical digital solutions with high customer retention. We are positioned in a market where digitalization, AI and increasing demands for efficiency are driving demand among our 40,000 customers. We have long-standing customer relationships, deep domain expertise and a high level of trust from our customers. Let me remind you that the majority of our net sales is owned software and services, representing the value we bring to our customers. 62% of our net sales last 12 months was from recurring revenue. We have significant opportunities to deepen our engagement with existing customers and gradually increase the share of recurring revenue. We are already seeing how AI creates value, both internally and in the solutions we deliver.

And our partners are also investing substantially in AI capabilities. I would like to highlight 2 customer examples. They illustrate how we support customers in their digital and AI transformations. The first example comes from Symetri and how they support the hospital of the University of Pennsylvania. The hospital was looking for better ways to handle compliance and ensure quicker patient call response times. And how did we do that? We did that by upgrading the system IBM Maximo and developing an AI-driven portal with a customized chatbot. This made operational information more accessible and actionable. And it's a good example of how we help customers use AI in a practical way. The second example comes from Technia.

We supported Rosenxt to connecting its PLM and ERP systems with our own technology. Rosenxt is a developer of robotics, sensors and physical AI. The integration improved data sharing and standardized product structures. It also created a scalable platform for future growth enabling cloud-based upgrades. Both of these examples reflect a broader trend across our businesses. Customers continue to invest in solutions that improve efficiency, increase transparency and support long-term growth. Addnode's strong customer relationships, our deep domain expertise and the data embedded in our solutions position us well to develop and deliver new AI-enabled services. A recent Look into our broader shareholder base. Two things that I would like to highlight. One thing is that we can see that the number of shareholders has increased during the quarter. We have moved from roughly 8,000 to 10,000.

We also had a change in our top 10 shareholders. As we can see, if you compare the graphs is that Robur is now no longer part of our top 10 shareholders as they have sold the majority of their shares during the period. So going through our 3 divisions, Design Management, Product Lifecycle Management and Process Management. As you can see in this graph, our 3 division is that the biggest contributor this quarter is Process Management. So division Design Management. Symetri is the biggest company in the division. It is the world's largest Autodesk partner and a leading global provider of design and asset management solutions. We are serving more than 30,000 customers across Europe, Latin America and North America. What are the key highlights in Q1 -- in Q2. Net sales decreased by 11% to SEK 560 million compared to SEK 627 million. Sales of partner software were affected by the timing of Autodesk contract renewals and also by the new incentive model.

Our own software and services continued to generate positive organic growth, plus 7% in the quarter. The big acquisition of Autodesk Partners in Brazil and Canada continued to perform well. What are we focusing on now? Symetri has had a strong and rapidly grow since 2021. It is now time to set the foundation for the next step in our growth journey. We are deploying a new organization in Europe and U.S. with even more focus on new sales. We are realizing operational synergies of SEK 100 million in a cost reduction program. To make these synergies happen, we have one-off costs in the quarter of SEK 28 million. No additional costs related to the program are expected. The cost savings will have effect from Q3 2026, and we will have a full run rate effect in 2027. I would now like to hand over to our CFO, Kristina.

Thank you, Johan. And I'm going to take you through the Design Management, the movements of the net sales from Q2 2025 to Q2 2026. And why also explain a little bit why the underlying business remains stable in Design division, while the reported net sales is substantially impacted by the renewal patterns of multiyear Autodesk contracts. And that pattern includes the timing of the renewals and also the mix between 1- and 3-year agreements. So this slide describes how the reported net sales has evolved comparing to Q2 '25 to Q2 2026. And in Q2 2025, net sales amounted to SEK 627 million. And now this year, Q2 amounted to SEK 560 million. And I will describe the 4 parts, the organic and the adjusted early renewals after the acquisitions and the currency effect.

In summary, organic growth was negative by approximately SEK 145 million for the period. However, the year-on-year comparison is significantly affected by approximately SEK 80 million of early Autodesk contract renewals. And a number of contracts that was originally scheduled for renewal in Q3 last year were renewed earlier already in Q2 last year, and that creates a favorable comparison base in the prior year period. And excluding this timing effect, the underlying business development was more stable than the reported growth figure suggests. And I'm now going to explain the minus SEK 65 million that you can see in this graph. And the negative organic growth of minus SEK 65 million consists of 2 major parts.

Firstly, we have a positive organic growth for our own software and services. And secondly, we have negative organic growth from third-party software. And the SEK 17 million positive organic growth equals the 7% organic growth quarter-by-quarter. The remaining minus SEK 82 million is relating to organic growth for third-party software. And that minus SEK 82 million consists of 3 main parts. Firstly, we have a margin effect on the Autodesk partner, the new incentive model that amounts to minus SEK 20 million. We also have minus SEK 12 million coming from a product mix change where we have more 1-year contract compared to 3-year contracts. Also other third-party sales is included in this amount. And the additional SEK 50 million is regarding the renewal effects from a 3-year cycle. So that means that contracts renewed 3 years ago can only be renewed 3 years later. That is minus SEK 50 million the effect.

And we can also see that the big transformative acquisitions, Brazil and Canada mainly added SEK 86 million to net sales. The currency effect was minus SEK 8 million, mainly relating to U.S. dollar. To summarize, our assessment is that the underlying performance of Design Management remains stable with flat organic growth, looking into the own, our own software and services. and considering the timing effect excluded from that. And I will now hand back to Johan to talk more about the PLM division.

Thank you, Kristina. Division Product Lifecycle Management. Technia, the company in the PLM division, is one of Europe's largest providers of design and PLM platforms to the engineering community, and North America is also a growing market. The portfolio consists of our partner Dassault Systemes, market-leading platform and our own unique products and services. What are the key highlights in Q2? Net sales decreased by 1% to SEK 438 million compared to SEK 444 million last year. Organic growth decreased by 4%. We have had a clear focus in the division the last 12 months to improve margins. This has been successful, and we have improved EBITDA. Sadly, 8% of the people in the organization has had to left us as part of the process. This has affected service net sales as planned.

Strategically important customer segments such as aerospace and defense remain strong in demand. We had a solid quarter for Nordics, Benelux and U.S. German market is still stagnant. EBITDA increased by 24% to SEK 41 million, and EBITDA margin increased to 9.4% compared to 7.4% last year. Last year's cost savings has contributed to a higher operational efficiency and leaner cost structure. So looking forward, the aerospace and defense industry is emerging as an increasingly important growth market where Technia's deep domain expertise, comprehensive offering and global service capabilities position us strongly to capture expanding opportunities. Process Management. Process Management compromising 16 subsidiaries is a leading provider of digital solutions to the public sector in Sweden and Norway, holding strong market positions in urban planning and development, case management and geographic information systems.

Key highlights in Q2. Net sales increased by 18% to SEK 463 million compared to SEK 394 million last year. Organic growth increased by 2%. There is a solid demand from the public sector. We have strong market position in the public sector, long-term experience and solid references helped us win new contracts. EBITDA increased by 26% to SEK 93 million compared to SEK 74 million, and EBITA margin increased to 20.1% compared to 18.1% last year. Acquisitions and improved operational efficiency contributed to the improved margin. The EBITDA margin has improved for 8 consecutive quarters. The strength of the division is a highly efficient business model driven by recurring revenue and resilient demand from the public sector. So with that, I would like to hand over to our CFO, Kristina.

Thank you, Johan. And I'm going to take you through this graph about the cash flow and the operating activities. And what you can see in Q2 now is 2026 cash flow from operating activities improved to SEK 62 million compared to minus SEK 33 million last year. And this increase was mainly attributable to changes in working capital and also mainly from Design division. And this graph illustrates -- you've seen it before, it illustrates the cash conversion over the past decade, which is calculated as free cash flow in relation to EBITDA. And the pink trend line show the average cash conversion around 70% up to 2023 when we know that Autodesk changed the payment terms.

Before that time, all the 3 years under sign a 3-year contract, we were paid also upfront for all the 3 years. That changed in 2023. So now even if you sign up for a 3-year contract, we take the income or the revenue for the full 3 years still upfront, but we only get paid 1 year at a time. So after that temporary headwind caused by the shift in the payment terms, we are now seeing a clear upward trend in cash conversion in line with what we have previously communicated. And I would also like to remind you, it's typical for our business that working capital movements and cash conversion fluctuate between quarters. and we expect this seasonal pattern to continue with Q2 and Q1 typically generating the strongest operating cash flow and where Q2 and Q3 are historically been the weaker quarters.

And let's have a look at the balance sheet. So in this graph, we are showing our balance sheet, the net debt and the leverage. And we can see that as of 30th of June 2026, net debt, including leasing amounted to SEK 2.45 billion, which is supported by around SEK 700 million in cash bank. The leverage amounted to 2.5x, which is a result of the acquisition activity and the leverage remains within the group controlled range, about 2.5x ceiling. During 2025 and into 2026, we completed 11 acquisitions, which have resulted in a temporary increase in leverage. And we are focusing on integrating these acquisitions in the business as well as deleveraging and on our balance sheet resilience. We also expanded the facilities and currently have around SEK 800 million in available unutilized capacity.

And also to add on to that, liabilities related to acquisitions amounted to SEK 620 million, of which contingent considerations are around SEK 540 million. And I would just like to hand back to Johan now for one of the final slides.

Thank you, Kristina. Addnode Group's growth journey. What is the strength of our business model, making it possible to deliver a compounded annual growth rate of 19% over a 10-year period. Addnode Group's business model is based on a strong combination of recurring revenue, organic growth and strategic acquisitions. We work constantly to boost efficiency and the profitability of our companies. Our financial target is to improve EBITDA with 15% yearly over time. Comparability between periods is affected by the renewal cycle of 3-year authorized contracts, but it does not impact our underlying performance year-over-year. We have proved that we can double our EBITDA every 5 years. Anode Group is well positioned. We have a solid foundation for continued growth and long-term value creation, supporting our 40,000 customers.

With that presentation of Q2, we would like to open up for Q&A.

[operator instructions] The next question comes from Erik Larsson from SEB.

I have 3 questions. So first off, just a clarification on the SEK 100 million in savings. When you say that half will be realized in 2026, does that mean SEK 50 million of savings in '26 or rather that the run rate heading into '27 will be SEK 50 million?

Yes. We expect about half of that as the program now was implemented now in Q2, we expect about half of that being realized from the H2 2026. And then the full effect will be from 2027.

All right. Perfect. And then this SEK 20 million in negative impact on net sales from the changed compensation from Autodesk, is it fair to assume a similar number roughly in the coming quarters? I understand you want to close the gap, of course, but can we roughly expect a similar number?

As I stated, the impact in Q2 is SEK 20 million, and that number is affecting our ability to do new sales and also to reach certain targets. So I think that is the best estimation as we have today. We don't really see it going up. It's rather -- so it's the best estimation that we have today.

Okay. And then just a final general question. I mean I appreciate the color you gave here in the presentation, and you're right in the report that Design has a stable underlying business with a growing customer base, et cetera. But obviously, it's very difficult for the market to digest that when you're just seeing top line and earnings. So how are your discussions in terms of increasing transparency here more -- even more like sharing the share of 3-year deals or number of customers, et cetera? Just any thoughts would be interesting.

Very good question. Yes, we will continue to work on that. And part of that we provided you with a flow chart today to see what the components were to make it available that we have a flat development in the comparison here. So we will definitely work with that going forward.

The next question comes from Daniel Thorsson from ABG Sundal Collier.

I also had a question on the SEK 20 million lower sales in design. I understand the mix between 1- and 3-year contracts, the timing of renewal and so on. But this changed incentive model, did this happen in Q2? Or was this known before?

The changes is from February because it follows the sort of the Autodesk year, so it starts in February. And going back to -- so we had 2 months in the first quarter. But as that was a new model, we needed another quarter to see the full effect of the program. So now we are in a position to provide you with a fair number.

Okay. And the practical effect is what -- is it a lower kickback fee? Or what is the practical effect?

Yes. It's a lower kickback. And it's dependent on several factors. It's not just a percentage. It's our ability in new sales, reaching different targets and then you get certain kickbacks, it's a [indiscernible] model.

Yes. Okay. I see. And then also on Design, comps get much easier now, of course, in Q3. But do you still stick to your CMD comments from September last year that '26 will deliver low single-digit organic growth in Design in '26? Or should we see that as history now?

I think we discussed this the last event as well. Yes, we still believe that we're going to have organic growth in Q4, and we're going to see that in Q3, and we're going to see that going forward. That has not changed with this change in margin. So we still believe that we are in a low point with regards to renewal cycles, meaning that from now, it should become better. And you will see that in Q3, and you will see effect in Q4. And you will also see that in 2027 as this is sort of a low turn in renewal rate. That means that 2027 we will see ourselves in a better position as well.

Okay. But there is a risk that '26 full year will be a slightly negative number, I guess,.

That might be, yes, for the full year. But going forward from now, you will see organic growth in [indiscernible].

Okay. clear. And then also the final one on the design, customers buying more 1-year licenses same as Q1. Is it because there is an Autodesk push pushing them to do it? Or is it because they want to do it for different reasons?

There are 2 reasons. One is that if you remember the discussion about the early renewals, that was driven by that the customer can't renew certain contracts as a 3 year. They must renew it as 1 year. So 1/3 of the 3-year contracts cannot be renewed as 3 years. So it will automatically be renewed at 1-year contract. So that's the driving force. I think that's sort of the most predominant force that we can see. who drives it. And then you don't have any sort of incentives. Historically, you have the financial incentive for renewing as a 3-year contract, basically meaning a discount. There are no discounts on 3-year contracts compared to 1-year contract. The benefit that you get is that you lock the price for 3 years.

The next question comes from Daniel Djurberg from Handelsbanken.

A couple of questions from my side as well. Starting off a question on design. Have you seen any implication on the revenues by any changes in revenue model from Autodesk going away a little bit from seat-based into more value-based models? Or is it too early to see anything from that?

We have a part of the -- when we sell to our customer, we sell subscriptions and we sell consumption-based tokens. So we already have that mix in our net sales. And percentage-wise, we can see a higher growth in the consumption-based token model. So that means that basically customer -- a normal customer buys a certain amount in a subscription and then they top it up with tokens, basically the consumption base for the less users of the systems. We had a good mix for them.

Okay. And would you say that the net effect there year-over-year is with regards to total revenues? Is it like down, flat or up or just to understand it.

No, it's not down. So we can see that it's moving and we -- so we can't see the negative effect of that from the model. Sometimes the customer can go up and down depending on how many users they have. So that follows more that [indiscernible].

Perfect. And also on the restructuring program or optimization here in design, how -- I guess you will need to reduce some people also. It will also impact the sales and the R&D organization some or it's mainly in admin, et cetera.

We're doing it for 2 reasons. So it's a very good question. One is the obvious that we have had a very rapid growth in Symetri for the last 5 years. I think we have almost tripled net sales in 5 years period. And if you go back 3 years ago, we didn't have any operation in the U.S. So it was time for us to realize these synergies. And you will -- those synergies, you will find mostly in sales administration delivery, not so much in R&D because that's a focus area going forward necessarily to drive organic growth. So it means -- and in that sense, the second part that we're doing is that we are transforming some of the sales operation moving from more of a renewal-based sales to more of an offensive, new sales.

So it's a mix of realizing the synergies from the rapid growth and also shifting some of the sales efforts, for example, to new sales efforts and making sure that we can also get our new products and services to the market.

Perfect. And my last question would be a little bit on communication, governance and so on. And we have, as you showed a really good EBITA CAGR of 90% last 10 years, but share is now down like 75% in 12 months and so on. And what -- could you have done something different to mitigate this effect and also how to improve market trust in your operations going forward?

Thank you, Daniel. It's a very good question. We can definitely do more of the communication and provide more data and more confidence for the future. So it's an ongoing discussion.

The next question comes from Thomas Nilsson from Nordea.

Looking at your balance sheet, you have SEK 2,450 million of net debt. You also have SEK 540 million of contingent considerations. Combining this, we would have net debt, including contingent considerations of about SEK 3 billion. And when comparing this to your rolling 12-month EBITDA of SEK 995 million, this would put net debt to EBITDA, including contingent considerations at around 3.0x, which is above your financial target of 2.5x. So could you perhaps talk a bit about what are the covenants on your bank debt? And do you see any scenario where you would perhaps need to raise more capital given the balance sheet and how it's structured?

Yes, I'm taking that question. So we have regular covenants in our banking facilities that we are aligned with. So that is not a problem. And also these contingent liabilities are to our -- the previous sellers of the companies. They are not interest-bearing in that sense, so not included in the reported net debt or EBITDA. So concluding on that, we are in line with our covenants and including -- also including the contingent liabilities.

The next question comes from Fredrik Nilsson from Redeye.

I wonder about your own software in Symetri. How closely connected is the sales process of your own software to the sale of an Autodesk license?

Thank you, Fredrik. Yes, it is connected because that also what brings value to the customers, seeing the customers see that we are able to use our knowledge to invest in software that provides value on top of the Autodesk platform that we are selling. So yes, it's very much connected. But having said that, we are also selling software separately as well to different customers. But it's connected, it's part of the offering, and it's usually bundled to our customers in the sales process.

Okay. I see. And I know you might not be willing to disclose this figure, but looking at the 3-year deals, and there's no major benefits of it left basically, is it approaching a very, very low share of sales? Could you perhaps give some flavor on that?

No. The short answer is no, it's not a low percentage. It's still a major part -- a big part of the sales that we are doing, but it's a portion that are decreasing over time, but it's still a significant part of the business, the 3-year deals.

I see. That's clear. And last question from me. Aerospace and defense in PLM continues to grow well. How large is it as a share of PLM today? And what's the growth rate approximately?

If you add aerospace together with defense, then you have to add what we're doing for the civilian part as well. It's almost 15% of the PLM division, 1-5, and it's a growing part. And we are providing both the platform and services. And it's also the base of Dassault Systemes, our partner. They actually started at the CA department in Dassault Aviation some 30 years ago and has developed from that. So it's a platform that is broadly adopted and used in the aerospace and defense, and we've been working with customers basically since the foundation of Technia in '94.

The next question comes from Mikael Laseen from DNB Carnegie.

I have a couple of questions. And the first one is if you can explain a difference between renewal-based sales and new sales, what changes do you need to implement to optimize that -- I mean, that organization and the focus on renewals -- or sorry, on new sales?

New sales is going after new customers, new selling them the new platform and also to existing customers, selling them new modules. So renewals, that means basically that what we sold a year ago or 3 years ago, we would like the customer to renew that. So that means that we are striving all the time to automate as much as possible of the renewal sales. Both in how we go to the customers and how we do the administration of that. So it's a constant effort to automate that. And if we automate, then we have resources that we can invest in the organization to drive new sales. So that's basically the move that we are going for.

Okay. And how long does it take for you to be aligned with this new incentive structure?

We are already -- most of the parts, we are up and running. So we are probably a little bit -- we have -- so we will see effect of this in the second half of this year.

Okay. All right. And I have a follow-up on this mix shift between 1-year and 3-year contract duration for the Design segment. Can you maybe repeat and clarify this underlying trend towards more 1-year contracts? How fast this could develop and the magnitude and if you can grow organically despite going towards more short-term contracts?

So I think just to add to what Kristina described earlier, you can see in the order flow between the quarters, you had roughly SEK 12 million of the negative organic growth that was related to the shift from 3 to 1-year contracts to give you a magnitude of it.

Okay. So that's this quarter. But going forward, is this the run rate that we should expect or will it accelerate? And what is sort of the end state here when this is sort of more in balance? What do you think?

We don't believe that the 3-year contracts in the near term will cease to exist and not be part of the offering. We still believe that it's going to be part of our offering. But what we can see is that there's a shift from going from one point of 3-year contracts to another. So it will not disappear. We can see the shift. And right now, we can see that 1/3 of the -- as I described earlier, we will -- 1/3 of the contracts will probably move away as they cannot be renewed. So we will see a shift on that going forward.

Okay. And this is sort of baked into your plan to grow EBITDA over time. And so you will manage this despite this dynamics.

Yes, we truly believe that. And we have shown over the year that we have a really adaptive organization who can handle these things that we have done a lot for the year. So we truly believe that.

[operator instructions] There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Thank you all for listening to our presentation and they're all good questions. And...

Thank you.

Welcome to the presentation of Addnode Group's Interim Report January to March 2026. [Operator Instructions]

Now I will hand the conference over to the CEO and President, Johan Andersson; and CFO, Kristina Mackintosh. Please go ahead.

Hello, everyone, and welcome to the presentation of the Addnode Group Q1 report for 2026. I'm CEO, Johan Andersson of Addnode Group. And with me, I also have Kristina Elfstrom Mackintosh, our CFO of Addnode Group. So today, we will give you an insight on Addnode Group and talk about our divisions, a little bit of acquisitions, touch upon AI, and we will end with a Q&A.

So Q1 was a quarter where we improved earnings and we can see stronger cash flow. We delivered solid earnings growth. The companies acquired in 2025 performed well and combined with cost savings contributed to our favorable earnings performance. EBITDA was up 26% to SEK 274 million, and EBITDA margin increased to 17.9% from 14.9%. Earnings per share increased by 24%. We can see the increase in cash flow from operating activities increased to SEK 363 million compared to SEK 203 million in the previous quarter in 2025.

We can also see an acquisition. Technia acquired a customer contract base in Germany. We continue to lay also the foundation for future earnings growth by continuing to implement AI, develop new offerings and optimize organizations. If we look at from a longer perspective that you can see in the graph to the right here, we can see that from 2025 to the rolling 12 months ending this quarter, the EBITDA has doubled from SEK 461 million to SEK 960 million.

I will later walk you through Q1 by divisions, but I would like to hand over to Kristina, our CFO.

Thank you, Johan. And I'm going to take you through the net sales development from Q1 last year to Q1 this year. And we can see that net sales increased by 5% to SEK 1.531 billion, and the growth is mainly supported by acquisitions. And from the organic position, the currency adjusted organic growth amounted to minus 6% and the negative organic growth was attributable to mainly Design and PLM divisions.

And in the Design division, Symetri saw a slower market in Europe and U.S. and lower share of 3-year contracts compared to the same period last year. And as we have previously communicated, 2025 last year was one of the years where there's a lot of volume -- high volume of 3-year contracts being renewed. Also, the market situation in Germany, where PLM is operating remains challenging.

Looking at the acquisition, they contributed to plan and with SEK 223 million. And the integration of the new acquisitions are progressing well and the acquired businesses delivered in line with expectations. But currency movements had significant impact during the quarter and mainly the weaker U.S. dollar had a negative impact of minus SEK 61 million in the quarter. And that relies mainly in the Design division, where a majority of the U.S. dollar-denominated business resides.

And we're going to have a look at the cash situation and cash flow. In Q1 2026, cash flow from operating activities improved by 79% to SEK 363 million compared to SEK 203 million last year. And this increase was mainly attributable to stronger earnings and changes -- positive changes in working capital. And this graph that we have shown in past meetings show the cash conversion over the past decade, where we calculate the cash -- free cash flow in relation to EBITDA for the rolling 12 months quarter-by-quarter.

And you can see in the pink line, we have had cash conversion rate about 70% up to the time when Autodesk contract allowed us to obtain the 3-year payments upfront for all the 3 years. That changed in 2023, and now we are getting the payments yearly in advance, year-by-year. And you can also see the graph now reflects an upward trend in the most recent quarters and in line with what we have previously communicated. And also historically observed the working capital effect and the cash conversion tends to vary between quarters, and we expect such volatility to persist going forward.

And we're going to have a look at the financial position also. And as of March 2026, the net debt, including leasing amounted to SEK 2.2 billion. It was also supported by around SEK 900 million in cash balance and the leverage amounted to 2.1x as a result of the recent acquisitions activity. And from the facilities we currently have, we have about SEK 800 million in available unutilized capacity. And during 2025 and now in Q1 2026, we have completed 11 acquisitions, which have resulted in a temporary increase in the leverage.

And we're also going to look at the return on capital employed in next slide. And return on capital employed amounted to 14.6% as of March 2026. And the many and large acquisitions that we completed last year temporarily impacted the reported return on capital. And while the results of the acquired companies are included only from the time of acquisition, and that's, if you remember, it's SolidCAD came in by the end of October last year, FF Solutions in Brazil in the beginning of August and Genus in Norway from beginning of July. The full amount of the capital employed is added immediately at the point of acquisition. And this timing effect creates a short-term dilution of return on capital employed, which you can see in this graph.

And now we're going to go into more details about the divisions. I'm going to hand back to Johan.

Thank you, Kristina. Some of you may know, we are organized in 3 divisions. We call them Design Management, Product Lifecycle Management and Process Management. And I'm going to walk you through the development in Q1 for each of our 3 divisions. Before we do that, you can see that the 2 bigger divisions, if you look at the share of EBITDA, you will find it's the Process Management and Design Management and then we also have Product Lifecycle Management.

So let's start with Design Management. And before we do that, I just want to remind you that as of January 1, 2026, Tribia has been transferred from the Design Management division to the Process Management division. All the comparative figures you will see today have been restated to reflect the scenario which Tribia has already been transferred in 2025. So the numbers are like-for-like. So there are no effect on the transfer in the numbers that you can see here.

With that as a start, we can see that the Design Management division's net sales increased with 7% to SEK 659 million. As Kristina mentioned earlier, the weaker U.S. dollar had a negative impact and adjusted for currency effect, organic growth was minus 12% in the division. However, EBITDA increased by 7% to SEK 158 million, and the EBITDA margin increased to 24%.

The acquisitions in Canada and Brazil have developed according to plan and contributed to improved net sales and earnings. In Brazil, growth was driven by continued investment in infrastructure. And in Canada, we can see that customers continue to show renewed confidence in us as their partner. Looking at Europe, we can see that net sales in Europe and U.S. were negatively impacted by a few things.

We had a lower volume of the subscriptions that was up for renewal. And out of those that were up for renewal, we can see that more customers than historically has chosen a 1-year subscription over a 3-year when they renew. And we can see that, that trend is continuing. So it means that there are still customers with us. But with regards as we explained earlier on that, as we are considered an agent, we are reporting the full value of the contract at the time of the sale. So if we sell a 3-year contract, we boost the sales. And if we sell a 1-year contract compared to having sold a 3 year before, it has a negative effect in that quarter compared to that. But it means that we are still having the same underlying business value. So that's important to have with you.

We can also see that there are some geopolitical changes in the world, and we have some effect also from the market. And that has probably also affected the choices from the customers because you could imagine that in a more uncertain world, you're probably going for more for a 1-year compared to 3-year if you have the options. But the number of customers have increased in Europe and U.S. during this period.

So we also have service providers globally in the division who are more focused on facility management solutions has delivered a stable earnings performance compared with the preceding year. So if we look at long term, this is a division that if you look at the graph to the right, we have moved from net sales in 2021 of around short of SEK 1 billion to the plus SEK 2 billion that we are today and we increased the profit. So the trend is long term. We can see that in this quarter, acquisitions performed really well. And as I mentioned, net sales in Europe and the U.S. are a little bit lower than we would have liked, but the results and the margins are with us.

So looking at division PLM. You can see we have a decrease in net sales to SEK 420 million in the first quarter. If we adjust for currency effect, it's minus 4%. Here, we can also see that we have a trend of customers choosing subscription solutions rather than perpetual licenses. That has sort of had effect also on the top line. But the demand for PLM systems, design and simulation software and related services from strategically important segments such as aerospace and defense remains strong, and we have expanded several customer engagements, particularly in the Nordic countries. The market situation in Germany is still challenging, and there are investment decisions regarding major projects are still being approached with caution from our customers.

EBITDA has increased to SEK 33 million compared to SEK 4 million last year. But those of you who were with us last year know that we had some restructuring costs last year. Those have had a positive effect, and we can see the positive of that margins going up. And if we add back the restructuring costs and compare, we can see that still that we have a growth in EBITDA of 18% compared to the comparable quarter last year in the run rate. So it's a good performance, and we can see that the cost-efficient measures taken have had an effect in the business.

We have made an acquisition here in Q1. Technia acquired a customer base in Germany of the Dassault Systemes software, added 80 new customers to the 6,000 that we already have here. And net sales on that customer base is roughly around SEK 18 million, and it's something that we can add to the organization that we already have in the German part of the business of Technia.

Looking at Process Management, continued their positive streak that they have for 7 quarters in a row right now. Net sales increased by 15% to SEK 466 million in net sales. EBITDA was up 27% to SEK 104 million, and EBITDA margin increased to 22.3% from 20.3%. This was the seventh consecutive quarter in which the EBITDA margin improved year-on-year.

Along with good efficiency and effective cost control, margin-enhancing acquisitions such as Genus in Norway have contributed to this earnings improvement. Sales to public sector is still stable, but we can see that there is an uncertainty in the world and those larger projects that we probably did more of a couple of years ago are still being approached with some pressure.

And as we mentioned earlier on, the Tribia has changed to this division and all the comparative figures have been addressed with that. And we think this is a good change. It's in line with the group strategy, and it aims to strengthen collaboration between companies focusing on the public sector and digital case management and will create conditions for further growth and efficiency improvements. It also means that division Process Management will have a stronger node in Norway with the companies Genus, Decisive and Tribia.

We have touched upon acquisitions. And as we mentioned, we had a really strong year in 2025, adding at least SEK 700 million in net sales and strengthen the group. Had a good effect of that, meaning that we were able to build, for example, Symetri to be the world-leading global Autodesk partner, with presence in Europe as well as North and Latin America. We also strengthened Process Management with a strong Nordic footprint and acquisition of Genus in Norway.

In Q1, we can see that the acquisition climate has been characterized by greater uncertainty in valuation discussions, mainly driven by AI concerns and a more complex macroeconomic geopolitical environment. But as I mentioned earlier on, we have made one acquisition of the customer base here in Germany. And we are still continuing to look at acquisitions. But with our -- as we did so many acquisitions in 2025 and with the uncertainty in the world, we probably will see a slower acquisition rate this year, and we expect to pick it up by the end of the year.

Just to touch upon AI. AI is something that we're all talking about, something that will have an effect and is having an effect on all of us. It's an important focus area for Addnode Group. We believe it enables continued innovation. It will increase customer value and our internal efficiency. We are, as a group, focused on a few nodes around software and digital solutions for engineering, design, asset management and public sector workflows, and we think that's an important assets.

Our strong customer relationships and our in-depth knowledge of the processes paired with the data created and stored in the digital solutions we provide represent a strong platform for development of new AI-based services. What is core in all our domains and the nodes that I mentioned is that we have a deep domain expertise and provide software for entire workflows. We provide mission-critical systems that are embedded with our customers.

We are a trusted ecosystem partner in regulated environments. We are supported by strong partnerships with, for example, Autodesk, Bluebeam, Dassault Systemes and Esri, that means that they are able to invest in things that we are able to provide to our customers. We also embrace AI because we believe that it's something that will make us stronger in our customer value. So I believe we have a good starting point where we are.

And just to give you some examples, we have -- if you look at the last, I think it's 3, 4 quarterly reports, we have presented some new AI products that just to give you a flavor of what we are talking about. And if you look at what we're presenting in this quarter is, for example, with the Inuse Connect IoT platform, one of our customers, the machine manufacturer, ALPMA has been able to increase its production efficiency, cut costs and reduce its service costs.

If we look at the other example with AI simplifying and streamline inspections, then we are in Sweden, and then we have a demand that you need to do ventilation controls and report it to the local authorities and the local authorities are our customers. So with the software Vinga and ATOM, you can automate and create an end-to-end digital workflow that enables Swedish municipalities to fulfill their statutory responsibility for mandatory ventilation inspection. This has resulted in shorter lead times, lower energy consumption, improved public health. These are 2 very good examples where we can infuse existing solutions with AI to provide more value to our customers.

So AI is definitely enabled for increased customer value, its innovation, efficiency. The technology which is being integrated to our customer solution internal process is an important aspect of how we create value. We, as a group, do believe in decentralization, but it means that we push through a few things to make things happen within our group. All these different companies in the group are doing a fantastic job. But what we specifically push and help each other with is to make sure that we continue to develop AI-driven customer solutions. And we are doing that by ourselves. We are doing that with our partners, and it's a constant development.

An important thing is leadership and how we make these things happen because it has an effect. So we try to work together. We push it through our executive summits. We have different meetings within our divisions to make sure that we have the right leadership to make things happen. And then also on a more subject matter level, looking at development, sales, marketing, example, there are different networks within the group that goes to our group level, but also in the different divisions to push this to make this happen.

And then we try to promote by showing good examples, for example, Addnode Innovations. I think this is -- we have 60 very good applicants, and now it's down to 7 in a final. And most of them are actually in production because you can see the potential in AI. We started by coding a couple of months ago, and it's already now happening. So it's a lot of things happening, and we're trying to push for it. But we are a decentralized organization that means that we have a lot of things happening in the group.

So trying to sum this up, we can see that we are delivering on our growth strategy. We are combining organic growth with a value-creating acquisition strategy. If you look for a full year perspective, even though we have a quarter with lower inorganic growth. Our financial target is to grow EBITDA with 15% year-on-year. That means that we aim to continue to double EBITDA every fifth year. Since 2016, we have a compounded annual growth rate EBITDA of 19%, and we are increasing EBITDA margin.

With the presence in various regions and industries where our digital solutions are mission-critical, we have built a robust business that remains strong even in a challenging economic climate dominated by geopolitical turmoil. Looking forward, growth and improved earnings will continue to originate from the development of new offerings, the implementation of AI and acquisitions. We will continue to optimize our organization as technology, market conditions and economy changes. Addnode Group has shown and will continue with the creativity, perseverance and commitment needed to generate value for both our customers and our shareholders.

So with that as an introduction, we would like to open up for Q&A and questions.

[Operator Instructions] The next question comes from Erik Larsson from SEB.

Can you hear me?

Yes.

Yes. We can hear you.

Okay. Sorry for that. Great. I have a few questions. So first off, if you look at your customer base for the rest of the year, do you see fewer agreements that are up for renewal? Or was that more isolated to Q1?

What you can see is that we had here in Q1, yes, [indiscernible]. And then looking at -- we would probably see that we go back to more of a historical sort of normal activity over the year is that Q2 is usually slower. Q3, okay and Q4, better. So we will probably have seen that pattern during the year as well, what I would believe.

All right. And then I wanted to ask about the M&A contribution, which was strong here in Q1. And if you could just give some flavor if that also reflects the seasonality in like SolidCAD and FF Solutions or to what extent we could extrapolate this to Q2, for instance?

I mean it's a very good question. And yes, there's a seasonality in that because these are more -- the Q1 are to be very strong. So yes, there's definitely seasonality in that. So you cannot extrapolate it for Q2. You should probably expect more, like I mentioned, that is Q1, yes, very strong, and we are proud of that. And then we will probably see that Q1 is the slowest quarter during the year. And then Q3 will be sort of okay and Q4 will -- but that's -- we're talking about the full design here.

So if you look at the guidance, as we said that we are probably around SEK 700 million plus on the run rate for the acquisition we did for in 2025 and then you compare it with a very good contribution in Q1, you'll see that we -- there's a sort of an overachievement compared to that in Q1, and that has to do with some expectation that Q1, it should be better. So there definitely is some seasonality there.

Okay. Perfect. And then the final question on cash flows. I think you talked about it a bit, but we've seen now 2 strong quarters and this normalization that you mentioned several times is currently taking place. But then historically, we have seen limited cash flows in Q2 and Q3. So the question is, should we assume that in '26 as well? Or is there still some catching up to do, so to say?

Yes. If you look at the cash flow from -- we have the strongest cash flow quarters in Q4 and Q1. And based on historical patterns, Q2 is slower and the lowest pattern in cash flow is in Q3. So we expect the same pattern going forward as well.

The next question comes from Thomas Nilsson from Nordea.

You mentioned a lower share of 3-year contracts in Q1. When it comes to the negative 12% organic growth we see in -- we saw in Design Management, how much of this 12% negative organic growth comes from a lower share of 3-year contracts in Q1?

We don't have an exact figure for that, but just to help you to give you some guidance is that we start off, and this has to do with the way the base of the business that we -- for example, the contract that was sold 1 year and 3 years ago, those are the contracts we expected to be renewed this quarter. So that means that we had a lower base that was sort of previous sold to be renewed compared to the last quarter last year. So we expected a slower net sales compared to that.

So we have an effect of that, and that was expected. And then of the contracts that we renewed, the customer chosen more to go with a 1-year contract, and we expect that pattern to continue going forward. So we'll see that. The good thing is that the customers are increasing. The number of customers are increasing. So we can see that we are at least sort of flattish on the underlying customer value of the contracts if we try to sort of annualize the value of the 3-year contracts.

So we are sending a signal that it's not 12% organic down. It has this effect on the -- for the [ 1 or 3-year ], and you can see the strong cash flow as well. So you will not get a sort of a full number of that, but we are saying that we are more on a flattish on the growth rate of the underlying business.

Okay. Okay. And in terms of organic growth at group level, when do you expect we will return to organic growth for the group? Will it be in the remainder of 2026?

I think best guess is that we expect that we will not, as a group, have organic growth this year. It has to do with -- if you look at it, we will always -- it's more -- also has to do with us. We will continue to protect the bottom line. You can see that, for example, we are increasing our EBITDA, and we are increasing our earnings per share with 24%. We'll have a focus on that. But I wouldn't expect us as a group to have organic growth in this year. It has to do with -- we started with this quarter. You can see that we will not be able to sort of catch up that during the year. And we are not planning -- I think we said going back to our capital markets in last autumn, we said that we expected low digital organic growth for the next year.

And now we can see that there are some -- definitely the sort of the geopolitical situation and the market has not probably expected as we are -- as we expected at that time. So it's now we are probably saying that, that low sort of organic percentage growth has probably turned around to say, let's be -- strive for organic growth, but we are not planning for that.

Okay. One final question. Do you see any risk on the horizon of AI native start-ups in your business areas?

We shout-out, of course, we see risks because we also see all the opportunities by ourselves what we can do. So there -- and the next question is probably have something of that materialized? No, because there are the things that, as I mentioned, what we are -- we are very much still embedded in our systems. It's more -- we are working in regulated environment. So the sort of 2, 3 man start-ups are not relevant options for our customers to handle this.

But having said that, we are also seeing what so many things that you can do. So of course, there are risks, and we try to address them as -- we address them as best as we can and we develop ourselves. So there are always risk in running a business. And within the risk also like the opportunities.

The next question comes from Daniel Thorsson from ABG Sundal Collier.

Yes. I also have a question on Design Management here in Q1. Do you think that the 1- and 3-year agreement changes here is, to some extent, explained by some AI uncertainties as well, both because customers may not know what competition and pricing may look like 2 years out, but also that they may face headcount reductions internally themselves. Is that something you hear in customer discussions?

We are not hearing that saying that, okay, this is because we are looking at AI. We're also hearing some customers saying that what do you think about changing your system? That's not an option because we're also heavily embedded in our processes and routine. For example, if you are an architect or technical consultants, all the new development that you are doing, all the historical and everything is so heavily embedded. So it's a very sort of long and painstaking process. It's like trying to change SIP for [indiscernible]. It's a lot of things. But having said that, it's quite tough to understand what is sort of normal GO things affecting business and what is AI.

No, I understand the businesses are embedded by the customers and they may not change it. But I also think that some of the customers that consider a 3-year agreement now, they may think that...

Yes. It should be.

Prices for this will be lower 2 years out or our 100 architects today may be 90 architects in 2 years because of internal efficiency and productivity. So it's better to go with 1 year now because we don't know how we will look like in 12 months' time. We haven't really heard that.

We haven't really sort of had those type of discussions saying that because of this, we are -- because I think our customers are still trying to sort of in the face of -- you are a little bit ahead of the curve compared to our customers. We have also customers saying that we want you to ensure that you are not implementing AI in our solutions because we cannot do that for regulatory. So we have all those type of discussions. And let's see, you should say ask me that question again the next quarter, and then I will sort of probably reevaluate that. But so far, we haven't had those sort of big discussions with our customers say that, you know what, we're going to decrease with X percentage of numbers so be prepared for that. I'm not saying that it's not going to happen. I'm saying that we have not had those discussions.

Okay. Cool. I understand. And then a second question here on Design Management. You answered partly to Thomas's question here on organic growth guidance for this full year. Did you refer to Design Management or on a group level? Because on the Capital Markets Day, you said that you expect low single-digit organic growth in Design Management for '26. And now you say not on a group level.

And then I think it goes with -- sorry, if we are not able to do organic growth in Design Management because it's roughly half of our business, then we're probably not going to be able to do organic growth on a group level because for PLM, for example, we have took the sort of the decision to discontinue some business to improve our profit margins. So we can't really expect to do organic growth in PLM for the full year. And if we are saying that we can't expect organic growth in Design, then the organic growth that we would hopefully be able to generate some percentage in Process, that will probably not be enough to compensate for the sort of entire group.

Yes. No, that makes sense. And then a question on Q2 here in Design Management. We know that we have a tough comp from last year. You had the positive boost from renewals before mid the year there. How should we think about kind of the magnitude in organic growth in Design in Q3? Will obviously be materially larger on the negative side compared to Q1 here, but like 20%, 25% magnitude, is that unreasonable given that you grew 50% last year?

I think that depends on what you compare with because we had a significant boost in Q2 last year of preordering of 3-year contract because that was the sort of the end of [indiscernible]. And that also means that we have less sales in Q3. So I guess it's not that easy to just answer because that depends on what base you're comparing with.

I was thinking year-over-year versus Q2 last year. I guess it will just be a large drop.

It will be a large drop, and that has to do -- it's a very good question. And I just want to remember everyone that Q2 last year was a significant boost from the preordering that meant that we had Q3 very much lower. So if you want to try to sort of address the magnitude of the changes, you need to sort of combine Q2 and Q3 last year.

Yes. That's clear. And then the final question on Process here. You had 1% organic growth in Process. So that means that either volume or pricing is negative year-over-year, which one was negative here in Q1, if you could...

I think it's volume. So we have some pricing. So -- and the pricing is that sort of -- that's probably we can do some. So I think it's a mix. But it means that depending on a little bit how we measure, we are having slightly volume negative or flattish. There's no growth in the volume to make that organic growth happen.

The next question comes from Fredrik Nilsson from Redeye.

I want to follow up on the movement from 3-year to 1-year deals in design. Have you seen a similar pattern before in more uncertain economic environment?

I think what is happening now is that, yes, we might have some uncertainty in that. But we -- I think just to be very clear, we have a move irrespective from the sort of uncertainties there that is going to 1-year contracts. And that has to do with that if we go back, for example, a couple of years ago, the customer had a discount from moving to 3 years compared to 1-year. And then it was moved to -- you can fix in the price. And now we can see that and they had still to pay upfront.

And then over the year, it has moved to that irrespective if you change -- if you fix the price for 3 years, you still have to pay yearly. So the trend has been going on for the last sort of couple of years that move to 1 year. So I think the majority of what happened is that there's a push to 1-year contract within the system. And then we have an uncertainty in the sort of normal sort of market things that are going to happen. So just to add some flavor to your question.

So -- and the question and the other one is that, no, we don't have any sort of a good historical comparable saying that in these times, customers choose this and that. But we are talking more from a -- it probably makes sense and I had a previous question that do you think the customer has done for them? It's hard to answer, but I also want to put out there that we have a trend moving to 1-year contract, and that will continue.

Good thing is that we will be able to show more sort of less volatility in our reported earnings going forward for the same customer base if we are able to sort of increase the number of 1-year contracts, if that makes sense.

Yes, yes, that's good. And let's move on to PLM. As you mentioned, the margin increased quite a bit year-over-year. But I mean, it was still below the second half of last year. I guess there might be some seasonality, but still there seems to be a slightly lower level. Has the market worsened somewhat? Or could you help us understand the number?

No, I think what you're pushing at that Q1 is always the best quarter for Design Management, but it's also the less best quarter for PLM historically, irrespective. If you look back over the years, you will find that Q1 is probably the quarter, and that has to do with some seasonality with sales of software and deliveries of projects. They have more services within themselves. So that means that January is probably a little bit slower because you need -- there's a sort of you start up for the year, you do more projects. And in Design, you end the year in January. So there's some seasonality in that.

Okay. I mean I agree to what you're saying to some extent, but still in 2024, 2022, the margin was quite strong also in Q1. Were those quarters exceptional then you would say? Or how should I understand that you don't really see that seasonal pattern in the numbers you report, I would argue.

You have better sort of data in front of yourself than me. So -- but I don't feel that -- the question is that do we feel that we are being less efficient as we go ahead, that's not my thing. So I expect that we will be able to continue to improve earnings over the year this year compared to last year, if that's sort of the underlying question.

Yes, that's clear. And last question, regarding the capitalized work, it increased quite a bit relative to sales. Is this the level we should expect going forward? Or was there something special in the quarter?

The special in the quarter is that we now have our company in Norway, Genus, who are providing own proprietary software, which have capitalized in the Q1. We didn't have that in the past. So that you can expect and that has not been depreciated or amortized over time yet. So for the companies that are providing own products and solutions, we will expect more capitalized R&D being put in the numbers.

The next question comes from Mikael Laseen from DNB Carnegie.

I had a few questions. And the first one is on Design Management and how Autodesk's increased focus on new sales versus renewals are affecting your business.

That's a good question. The short answer is that we don't have the full analysis of that. It's -- the things that you mentioned is that from February, so it's the first month of the Autodesk year, there are the sort of the incentives are slightly changed so that they are pushing for moving from more from the back end to new sales. And it's a little bit too early to say that because we have only had that process for 2 months. And so we don't have any sort of a good analysis of that.

But basically, what they're trying like everybody else is trying to promote new sales over sort of renewal and taking care of existing customer base. We are getting sort of incentivized for both, but in the new model, more on the new sales. So it's a little bit too early to do any bigger analysis of that. But basically, if we sell less, we probably will get less margin on that. That's the sort of expansion. And the margin that means that in an agency model, that's our net sales.

Yes. Okay. But you haven't seen any dramatic effects so far in Q2 then?

No, not yet. But -- so I would argue strongly advise you to ask me that question again in the next quarter, and then we will see because then we will have been able to go through a full sort of Autodesk quarter and then into next quarter, and then we will be able to see how this pans out.

Okay. Can you then give us some sort of background to the dynamics in new sales versus renewals for Design segment, how that works today? And yes, so we can sort of understand the potential changes if there are any.

I think you have to look at it by market by market. If you look at what we can see here in -- if you look at Europe and U.S., right now, we can see new sales were irrespective of it, it's a little bit slower. And new sales means that either we are selling new sort of seats could be to existing systems and modules or selling new models coming out of the new software. So it's a mix of that.

But then also if you look at the dynamics, you can see that, for example, in Brazil, we have a strong growth, and that is supported by all the infrastructure investments being made. And so that we have a strong position there. Canada, we have a very strong position as well. So we can see that's growing well. What we've been struggling shortly has been in Europe and U.S. of new sales this quarter. I don't know if that was sort of your underlying question, please ask again, I probably...

Yes. But just thinking about -- I mean, the renewal rate is, I guess, pretty high historic customer base renewal. And so it's just -- you will still get a fair amount of, I mean, revenue on that, but it's sort of a bit more towards new sales, so you get rewarded more for pushing more new sales is what's going on?

Definitely yes. The short answer is yes, we will sort of compared to a year ago, we will get sort of more percentage-wise margins, so to speak, on new sales compared to renewal of existing customer base.

Yes. Got it. And -- all right. So are you seeing any pressure on pricing here in the Design segment or volumes or partner economics in general and the underlying changes apart for this push for new sales?

If you're talking about pricing -- are we talking about pricing to customers?

Yes, I guess so. And you guys check with Autodesk.

Yes. Pricing to customer, we haven't seen that sort of pressure on that. We can see that we have sort of a normal more of a KPI level price increases. That's sort of in the system. With regards to the message is that if we continue to do our work, we will sort of get our -- still our share of the cake in the same level. And that goes back to your question, how has that panned out with sort of promoting more new sales compared to historical. We haven't seen how that pan out, but that's the message still, and we are going for that. So still they are pushing for the channel, and we have still some more work to do so.

Okay. Got it. And I was also thinking about -- so in general, the underlying trend for this type of [ CAD, EO, OC ] players is I mean to bundle more and sell more complete packages, I guess. Do you also benefit from that selling more to the customer base, upselling, cross-selling? So how do you work with that?

That's what you mentioned, yes, as these products are becoming more and more sort of adding more value to a customer, it also means that they are more complex to address with the customers. So that means that we, as a partner are investing more, having invested more in our service capabilities to be able to address that value for our customer. So that means that it has been beneficial for us as a bigger part or the biggest partner, for example, for Autodesk and one of the biggest, Dassault. So that we have the capabilities to bring out sort of the full platform. So it's -- that's definitely a trend.

So we believe that compared to other partners, we have an upside on that. So definitely. So that means that we are investing in people. Most of the people that are working with us, they have a history from the industry by themselves. They have been architects, technical consultants, been working in process industries and et cetera. So we sort of -- we would like to claim that we understand the processes that the software is about to be supported. So that's very important for us. So we believe that's something that will have a -- having a positive impact on us.

That's good clarity. And maybe if I may, a question on what you mentioned in the comment in the report that you talked about new offerings. Can you talk to us about what that means?

I think new offerings for us is both that what we are trying to -- some of the examples I mentioned here in the report today, we are able to bring some new IoT offerings to the market, helping our customers getting more productive within the maintenance. We are also been able to have sort of existing offerings, combine them, infuse them with AI and provide more value to our customers. Those are -- those types of -- we are probably not the type of company that's going to sort of greenfield investment of a sort of major investments.

So we are probably good at making things even better as we are. And we can also see that our product development is becoming more and more efficient by ourselves. So we are probably hoping that we -- and we're also working with our partners to bring new products into the market as well. So it's not the product. It's a lot of products that we're constantly developing to bring up to the customers. So as part of more of an evolving rather than revolution.

The next question comes from Daniel Djurberg from Handelsbanken.

Most questions asked, obviously, but I have a question coming back to -- you talked a little bit about the pricing trends with Autodesk and Dassault. Can you say something more on that like-for-like magnitude and also if we saw the full impact in Q1? And also if there has been any changes with regards to Autodesk, if they -- given the changes from renewals versus new sales and so on, as they take a larger share of these price increases themselves than in the past?

Okay. The first question, which can say anything about prices. And just to be clear, on the last one, I didn't sort of fully understand the question, last part of it.

Neither did, I guess. The first question then.

Yes. And about pricing, we can see that our expectancy is not that we are going to go like a 5%, 10% price increase in the [ press ]. It's more like do we -- can we expect to do 2%, 3% price increase. And then we -- on the sort of existing one, that's probably more what we can go for to expect in this environment.

Yes. May I ask you also since it is now Autodesk doing the invoicing themselves, and do you have easier to get the price increases through since it's Autodesk doing this and you will just go with the flow here, I guess.

Yes. No, I think the good thing is that we live in a world where we have sort of the help of Autodesk to keep the price up. Historically, when we were more of a direct sales organization, there was a competition on the price pressure. So with this new sort of agency model, it's easy to keep the overall prices up in the market from that perspective.

And yes, we can see that because we see the invoices that goes to the customers. And we send the quote to the customers. So we definitely see the end value. So we know sort of the end value to the customer more as we are the one sending the quote to them. And when they say yes to the quote, they get an invoice from Autodesk.

Okay. I understand. Another question, if I may. You talked twice, I think, in the call that you see a number of clients that has increased in EMEA and North Americas in Design, I think.

Yes, a number of customers.

Yes, a number of customers. Is this also excluding the acquisition of SolidCAD and FF Solutions?

Yes.

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

No. Yes. Thank you for all the good questions and taking the time to talk about Addnode Group. So thank you.

Welcome to the presentation of Addnode Group's Year-end Report 2025. [Operator Instructions]

Now I will hand the conference over to the CEO, Johan Andersson; and CFO, Kristina Mackintosh. Please go ahead.

Hello, everyone. It seems like we had some technical trouble in the beginning. So it might be that you didn't hear me in the beginning. So, I just want to start over again and thank you for listening in and we show the agenda, and let's start from there.

So, Addnode Group's purpose is all about digitalization for a better society. We operate, acquire, and develop entrepreneurial companies that provide digital solutions. For innovation and continuous development in close collaboration with our customers, we create digital solutions for specific needs. The software and digital solutions that we provide design buildings, infrastructure and cities and also the products that we all use every day like cars and all the way to our life science instruments.

When things have been designed and built, it need to be maintained with a life cycle perspective. And the public sector has a responsibility for the design and maintenance of our infrastructure. Our digital solutions makes all this possible.

So, looking at 2025, it was a year when we have set the foundation for further expansion. As I look back, I'm proud of the efforts our employees made, and I truly feel confident about the future. We have landed new customers, strengthened our offerings, expand into new geographic markets. Acquisitions have added net sales of approximately SEK 700 million, and we have strengthened the EBITA margin.

We have defined new financial targets, secured refinancing on more favorable terms, changed to a new transaction model, adopted the reporting of third-party agreements. We also continue to invest in AI and product development, optimize our organization, and improve the EBITA margin. So, we increased net sales with 4%. We had an EBITA growth also of 5% and EBITA margin increased to 15.6%.

Looking at the 5-year perspective in the graph to the right, you will see that from 2021 to 2025, net sales has increased from SEK 3.5 billion to SEK 5.8 billion, and EBITA has increased from SEK 461 million to SEK 903 million.

So Q4, we saw significant improvement in margins and profit. Acquisitions and cost efficiency measures contributed to Addnode Group delivering its highest EBITA ever for a single quarter. Net sales increased by 5%, of which minus 4% was currency adjusted organic sales growth. EBITA increased with 20% to SEK 298 million, and EBITA margin improved to 19.1%. You can also see that our EPS increased with 45% if you adjust for revaluation of the consideration for earn-outs.

If you look at our 3 divisions, Process Management, thanks to organic growth supported by margin-enhancing acquisitions, increased EBITA by 34%. Product Lifecycle Management posted negative growth on sales, but EBITA was in line with the previous year, thanks to cost savings. EBITA in the Design Management division improved by 16% despite challenging comparative figures for the fourth quarter in last year. Margin-enhancing acquisitions in Canada and Brazil contributed to the improvement.

Looking at the 5-year perspective, in the graph to the right for Q4, Q4 in 2021, we increased net sales from SEK 865 million to almost more than SEK 1.5 billion in 2025. And EBITA has doubled from SEK 148 million to SEK 298 million.

With that as an introduction, I would like to hand over to Kristina, our CFO, who will give you further guidance on group net sales performance in Q4 2025.

Yes. Thank you very much, Johan. I'm going to take you through the net sales development from the same quarter last year to Q4 2025. And as you can see that net sales has increased by 5% compared to last year, and this growth was supported by the continued execution across core markets and acquisitions, although partly offset by the currency movements.

Looking at the organic side, the currency adjusted organic growth was minus 4%, reflecting tough comparison figures from last year, where we had a larger amount of 3-year contracts within Autodesk. In the Design division, in particular, we saw now in Q4 this year, a lower share of the 3-year agreements compared with the same period in 2024. And as we have previously communicated, the option to renew certain 3-year agreements ended after Q2 this year, and these contracts are now being renewed on a 1-year basis.

And also in PLM, system sales and related services remained stable in U.K., U.S. and in the Nordic, supported by a broad and diversified customer base. Demand in Germany continued to be weak in the quarter and the market shift from perpetual licenses towards subscription solutions further intensified during the quarter. Process division contributed with currency-adjusted organic growth of 4% and sales to the public sector remained stable during the period.

Looking at the contributions from acquisitions. Acquisitions continued to perform according to the plan and contributed SEK 236 million in the quarter. Integration is progressing well and acquired businesses delivered in line with our expectations. Currency, however, the currency movement had a significant impact during this quarter. And the stronger SEK, particularly against the U.S. dollar, reduced net sales by SEK 97 million. And it's mainly within Design division where the majority of the U.S. dollar-denominated business resides.

Looking at the cash conversion then on the next page. Our business model is characterized by the asset-light model with moderate working capital and R&D requirements. And we also have strong cash generation supported by the upfront payments that can give our customers.

In this graph, as we have been shown before, illustrate the Addnode's cash conversion over the past decade, and it's calculated as free cash flow in relation to EBITA. And the pink trend line that you see shows the average cash conversion of around 70% up to 2023. And as highlighted in previous communication, we have currently experienced a temporary working capital drag related to the changes in payment terms from Autodesk 3-year contracts. And since 2023, these agreements are paid annually rather than upfront for the full 3-year term. And this shift has reduced cash flow in the transition period.

Now in Q4 2025, cash flow from operating activities improved to SEK 324 million from SEK 275 million last year, albeit still affected by the payment terms adjustment and the impact is gradually decreasing over the year. And reassuring, the graph now shows the first clear upward trend in the latest quarter, confirming that the working capital headwind is beginning to ease. But as you can see also historically, the cash conversion tends to fluctuate from quarter-to-quarter, and we expect this pattern also to continue going forward.

Now let's have a look at the financial position on next page. Over the past years, we have maintained a low debt level and leverage around 1.1 to 1.3. But during 2024, we have completed 10 acquisitions, which have resulted in a temporary increase in leverage. Ahead of the SolidCAD acquisition in late October, we refinanced and also increased our credit facilities, which now total approximately to SEK 3.7 billion, secured by more favorable terms than before.

And as of December 31, 2025, net debt, including leasing amounted to SEK 2.5 billion, supported by cash of SEK 625 million. Leverage has increased to 2.4x as a result of the acquisition activity.

From the expanded facilities, we currently have SEK 860 million in available unutilized capacity. And as we have communicated previously, we intend to maintain a controlled net debt position going forward. And at the same time, we will also continue to pursue strategic value-creating acquisitions, which may temporarily increase the leverage, depending on timing and scale.

Moving over to look at the return on capital employed. Addnode continues to demonstrate the characteristic of a compounder, and we are delivering consistent and strengthening returns to capital employed over time. And you can see that the acquisitions completed in 2025 temporarily impacted reported return on capital employed, while the results from the acquired companies were included only from their respective acquisition's date. And that's, for example, for SolidCAD by end of October, FF Solutions came in beginning of August and Genus, the Norwegian company in the beginning of July.

The full amount of capital employed is added immediately to the base at the point of acquisitions. And the timing effect creates a dilution of return on capital employed, which now amounts to 14.1% by end of December 2025. And as the acquired businesses continue to contribute to earnings, return on capital will progressively improve, reinforcing our long-term track record of a disciplined capital allocation and profitable growth.

And now let's have a closer look at the performance of our division. I'm going to hand over to Johan again.

Thank you, Kristina. So Addnode Group, we are reporting in 3 different segments, 3 divisions: Design Management, Product Lifecycle Management and Process Management. And if you look at the share of the net sales and the gross profit and EBITA from the 3 divisions, you will see that Design Management is the biggest division with regards to both net sales and profit. And then you will see that Process Management is second in size and third is Product Lifecycle Management. I'm going to walk you through the 3 different divisions and the progress during the quarter.

Starting with Design Management, that's where we help our customers with design software, product data management software and the maintenance of buildings and infrastructure. So, in the quarter, you could see that net sales increased by 6% to SEK 701 million. If you adjust for currency effect, reported organic growth was minus 8%. But as Kristina earlier told us that most of the effect of the lower organic growth has to do with this quarter. We have the lower portion of 3 years agreements being sold compared to last year in the Q4 when we had a higher portion. You can also see that we had almost 15% organic growth in Q4 last year on gross profit level. And this, it's minus 8%. So, the lower organic growth is mainly related to the mix of 1-year and 3-year deals being made.

But the weaker U.S. dollar also had a negative impact this quarter, as Kristina previously described. But if we look at EBITA, our profit increased by 15% (sic) [ 16% ] to SEK 169 million, and the EBITA margin increased to 24.1% Acquisitions in Canada, Brazil and U.S. have been successfully integrated and contributed to earnings according to plan. This is also the first quarter where we like-for-like, can report with regards to the reporting of our 3-year contracts. So, going forward, we will not be posting pro forma figures as much as we have done because now, we're reporting like-for-like with regards to our partner contracts.

Symetri, who is the world's largest Autodesk partner with a supporting offering of own tech and services, noted good demand from customers in infrastructure, construction, process and manufacturing industries. As I mentioned, we can see a negative impact on reported net sales from the 3-year agreements. And as previously communicated, the possibility to renew certain of these deals was ended in 2025. That only meant that the customers are now renewing them as 1-year contracts instead. We're not losing any customers. So, I know that we have some discrepancies here with the reporting net sales and the underlying organic growth, but our belief is that we do have an organic growth in the subscription base.

Service Works Global, who delivers digital solution for facility management; and Tribia, who provide collaboration platforms for the construction and infrastructure sector had stable earnings compared with the year earlier period. And if you look on a 5-year period in the graph, you can see that we had a growth going from almost SEK 1 billion in net sales in 2021 to SEK 2.5 billion that we are trailing right now in 2025, and we've been able to improve EBITA along that rise. So, it's been a good, progressing trend over the years.

So, if we look at Product Lifecycle Management, we're also providing design, simulation and product data management software to different customer group based on a very good partnership with Dassault Systemes, complementing with own services and products. We can see that we had a net sales decrease by 9% in the fourth quarter. If we adjust for currency effect, the organic growth was minus 5%. And sales and related show a stable trend in U.K., U.S. and Nordics, where we have a broad customer base spanning manufacturing, defense and life science industries. But in contrast, demand in Germany remained weak. But sales to strategically important aviation and defense segment remains strong with several new customers added.

We can also see that the trend with customers choosing subscription solutions over licenses with perpetual right of use is continuing to strengthen. EBITA decreased somewhat to SEK 48 million, but the EBITA margin was on par at 10.8% as last year. mainly related to the measures implemented to adapt the organizational cost structure, which were communicated in the first quarter has proceeded as planned and has been successful. These restructuring costs of almost SEK 24 million were charged early in the first quarter in '25, and we now see the benefit, and we are expected to generate at least annual cost savings of about SEK 45 million.

In Q4, we acquired a company, X10D Solutions in Sweden and has delivered according to expectation. And in January 2026, we also acquired a customer base in Germany. Looking at the 5-year perspective, you can see we've also been growing here, and you can -- but unfortunately, you can see the decline in the profit, and we've been addressing that, and we believe that we are trending on a higher level than we performed in 2025.

Process Management. Here we are predominantly active in Sweden and Norway, providing local and central governments software that makes it possible for them to do their job to both plan the infrastructure that we are all part of, but also case management and also high regulated industries like banks that we serve. Continued fantastic growth here and the division delivered yet another strong quarter with growth and improved EBITA margin.

Net sales increased by 24% to SEK 425 million. Adjusted for currency effect, the organic growth was 4%. EBITA was also strengthened by improved operational efficiency and positive contributions from acquired companies. Sales to the public sector remained stable. Large authorities are continuing to show certain restraint when it comes to investing in major projects. EBITA increased even more by 34% to SEK 94 million and EBITA margin increased to 22%.

The division's businesses are well positioned in public sector owing to their attractive digital solutions, in-depth experience and strong references. So, all in all, a strong quarter from the division.

So, moving on. If you look at acquisitions, we have announced 10 acquisitions in 2025. They are all expected to contribute to annual net sales of approximately SEK 700 million and to strengthen the EBITA margin. This has been supportive to the EBITA increase in Q4 2025. And as Kristina mentioned earlier on, when she talked about net sales that most of these acquisitions were made in Q4, so the majority of the SEK 700 million will have a positive effect in 2026.

But since the presentation of the last interim report, Q3 2025, we have announced 2 add-on acquisitions. The first one is ACAD-Plus, it's a U.S.-based provider of CAD-based space management and facilities optimization and software. Its product FMG-Plus, is a powerful AutoCAD add-on that seamlessly integrate with other third-party platforms. This will strengthen existing software portfolio in Symetri. We will have a strong footprint in higher education, almost 150 public and private university and a growing public sector client base. It has net sales today of SEK 12 million and 5 employees, and it's consolidated as part of Design division as of December 2025.

Encad is another example of an add-on acquisition, but this is for Technia in the PLM division. It will strengthen their presence in Germany. It's an asset deal, some 80 customers agreement for Dassault Systemes software portfolio, and it will add approximately SEK 18 million in net sales. Customers primarily within aerospace and defense, industrial equipment and transport and mobility, and it's consolidated as part of Product Lifecycle Management from January 2026.

So, what are we doing for our customers? If you look from an AI perspective, you can see that there were few cases presented in our interim reports. We also presented cases in our last interim report, and we will continue to present different cases as part of our interim report going forward. This quarter, we are showing 2 cases where we support public sector customers in both U.S. and Europe. Symetri has implemented an AI solution at the Port Authority of New York & New Jersey to streamline infrastructure inspections of bridges, tunnels and buildings. The Port Authority needed a unified system to manage fragmented and inconsistent inspection data. Symetri delivered an automation platform integrating GIS, geographical information solutions, AI and natural language querying for intuitive data access. The solution improved data accuracy, eliminated silos, and accelerated real-time reporting. It achieved 100% data consistency and enabled faster data-driven infrastructure decisions.

Another example is Decerno, who has developed an AI-based solution for the city of Stockholm's city planning department to improve and streamline maintenance of the city's geodata system. Stockholm City needed a scalable solution to keep geodata accurate and up to date as manual inspections were too slow and costly. Decerno developed GAIA, an AI tool that compares aerial imagery with maps to automatically detect and update changes. The system delivered reduced manual work by up to 75%, while improving data accuracy and update frequency. GAIA provides a data-driven foundation for digital twins and sustainable urban development.

So, these are 2 good examples how we can enhance our offering with AI and increase their efficiency in uses with our customers based on our knowledge of the business that they are working.

So, going forward, Addnode Group, we are a decentralized organization, but with the benefit of being part of a bigger group where we can share experience as we move forward. But if you look at the group perspective, we are focused on 4 things to build and expand AI capacity. And one thing is, of course, to deliver business value because everything is that what we do for our customers. So, AI is an enabler for increased customer value, innovation efficiency. The technology which is being integrated into customer solution and internal processes is an important aspect of how we create value. So, all the things that we do is to how can we use AI to drive better customer solutions.

But we can also help each other by coordinating leadership and how to move things forward. As I mentioned, we are a decentralized group, but we have very strong teams who are moving things forward and we can share the experience. Our Executive Summit, where we gather all executive management teams is an example on how we can coordinate and share experiences. This year's event was fully dedicated to the theme of AI, focusing on practical applications, business value and the opportunities and challenges AI presents for operations.

We also have an everyday task of being more effective and structured when implementing AI solutions. One thing that helps in that is our AI collaboration network. It's a group that brings together employees from across Addnode Group to share experience, ideas and best practices within AI. It connects people working on similar initiatives and strengthen learnings within the organizations.

Innovation is always very important for us. It's something that drives us forward. And Addnode Innovations is the group's innovation program, where all employees are given the opportunity to develop ideas and potentially start companies within Addnode Group. In 2026, the focus will be entirely on AI. Participants will have the opportunity to elevate their skills, gain practical experience and tap into insights from industry experts in everything from idea development to applied AI. This year, 56 different teams within Addnode Group has submitted proposal to the jury as a lovable approach to the jury in January, and the winner will be announced in May. So, it's a fantastic opportunity to get all the great ideas that are existing in the organization. So, this is just some examples of how we try to build and expand AI capacity across the group.

So, to end, where are we in our strategy and moving towards our financial targets? We believe that we are delivering on our growth strategy, combining organic growth with the value-creating acquisition strategy. Our financial target is to grow EBITA with 15% year-on-year, meaning that we continue to double EBITA every fifth year. Part of this is that we aim to move EBITA margin to 17%. We are in Q4 showing that we are delivering on our targets.

If you look at the longer perspective, 2015, EBITA was SEK 160 million and 2025, we are reporting SEK 903 million, meaning that the compounded annual growth rate for the corresponding period has been 18%, and we have moved EBITA margin from 9.6% to 15.6%. The acquisitions that we did in 2025 will add to the EBITA growth in 2026 and expansion of EBITA margins.

While we are seeing good demand for our business in mission-critical digital solutions, the global economy and geopolitical situation is still uncertain. But given our combination of diversified business, not only in terms of technologies, but also industries and geographic markets, our leading market positions and our dedicated employees, we believe that we have a good reason to feel confident about the future.

With that as a presentation and introduction to Q4, we would like to open up for Q&A.

[Operator Instructions] The next question comes from Mikael Laseen from DNB Carnegie.

I have a few questions, and I'll start with them. One regarding the Design segment. That segment reported minus 8% organic growth in Q4. So, can you help us bridge that growth figure with FX, acquired sales and contract duration implications, so we can understand the different forces here?

Thanks for that question. And just to repeat the question, is that the growth in Design Management, how much is related to organic, how much is related to FX and how much is related to acquisitions?

Yes.

Yes. I think if you have a look at our report that we published, we have all the divisions included in the appendix. So, what you can see from Design Management, we had organic, we were moving up from SEK 660 million net sales. We had a negative organic growth of SEK 50 million. Acquisitions contributed with SEK 158 million and FX by minus SEK 67 million. And as we previously identified that in Q4 last year, 2024, we had the benefit of a larger amount of 3-year contracts in relation to the total sales. And this year, in Q4 2025, we had a lesser amount of 3-year contracts. But I would like to point out on Page 29 in the presentation, you have all the details from the divisions.

And that's a new thing. So, you will see, and what Kristina has related, in the appendix to the presentation that we are discussing are published, we are breaking down the different topics like you mentioned on the division level as well.

That's excellent. I was just curious about this mix effect -- contract duration effect to understand that...

One thing to do is that we do -- as we are reporting net reported organic growth in -- I think it was minus 8%, the underlying organic growth is not minus 8%, and that has to do with, like Kristina said, last year, we had roughly 15% organic growth in Q4, and that was due to that we had a higher portion of 3-year contracts. And this year, we have a lesser portion. So, it's more of a mix effect. So, underlying organic growth is more to what we said on our Capital Markets Day. It has a low digital growth, but it's on organic growth. I think that's the best way to sort of guide you into it.

Okay. Yes, that's helpful. And another one here on -- follow-up on that mix dynamic. You mentioned in the Q4 report that the possibility to renew certain 3-year subscription agreements ended after Q2. So, can you clarify which agreements and -- so we can understand this?

And I think it's for you who have been following us for a long time, it goes back to -- if you remember last year, we had an effect between Q2 and Q3 where we had a big push in Q4 for 3-year agreements and that we saw some -- and that has to do with over 10 years ago, take it all the way back when we moved from perpetual license to subscription models, the customer have a certain -- sort of locked in the price on those contracts, and those were promised over a 10-year period.

And as we are reaching the end of that 10-year period, the customers cannot renew within that framework to 3-year contract because there are -- it's just not 3 years left on that timing period. So, it means that they are renewing within that framework to 1-year agreements. So, the customers are renewing there, but they can't renew it to a 3 year, they can renew it on to a 1-year contract. So that's what we are trying to describe there.

Okay. So, this is really this Q2, Q3 temporary...

Yes, it's nothing new.

There's nothing new or nothing that -- Okay. So that means that you, I guess, still expect design to grow low single digit despite the lower share of 3-year agreements in 2026, is that correct?

Yes, that's what we are aiming for.

The next question comes from Erik Larsson from SEB.

I have 2 questions. First off, a follow-up here on the recent question with 3-year deal. So, I just wanted to hear how you think about Q1 '26 in terms of comparisons and mix. Do you see last Q1 as particularly good? Or, yes, just any flavor there would be helpful.

I think what we can say is that we are moving to -- as a portion, we can see that the 3-year contract is moving from a higher to a lower. But at the same time, the renewal rates that we're having also have an expectation. And I think the best guidance is that we ended the last question is that we still believe that we can have a low-digit organic growth in the underlying customer base. And then in design, you have to add the acquisitions that we did predominantly in Brazil and Canada by the end of 2025. That will also add to the reported growth in Q1. So, from organic, we're still thinking about sort of the low-digit organic growth. And then we have to add the acquisitions that we have done.

All right. And then a second question on Process with the strong margins we saw here as well as in Q3. So, I assume this is mostly due to recent acquisitions, but I guess you've also sort of improved margins on an underlying basis for quite some time now. So, I just want to hear around these levels, are you comfortable with maintaining margins here going forward?

Yes, is the short answer. And like you said, it's a mix of the existing organization performing and being more efficient and also adding acquisitions that by themselves are growing after they have been part of Addnode Group. And that adds to the high growth for this group and the improved margins.

The next question comes from Thomas Nilsson from Nordea.

I would like to ask about the sustainability of the record EBIT margin reported, 19% this quarter. To what extent was this driven by one-off favorable product mixes or timing of license renewals versus cost efficiencies that we should expect to persist throughout 2026?

I think one thing is that there are differences in margin. We have between -- Q4 is sort of a good quarter. Q1 is a strong quarter. Q2 is almost a little bit slower compared to the rest of the year. So, there's a difference between the quarter. But having said that, as we are performing now, we have done a lot of focus on cost efficiency measures. So, we're in better shape there. We have added acquisitions that by themselves has a higher margin than the group by themselves.

So, there's no special effects in any way that we have. In any cases, in mixes like we have mentioned in the sign is that we do have a sort of a negative mix effects in the quarter, if any. And then we also have SEK 20 million negative in the U.S. predominantly against the sales. So I wouldn't say that there's sort of a boost in that. The boost is that we have done some acquisitions that are adding on top of it. The underlying business, we still -- we are pushing towards our target of 17%, and we believe that it's sort of a feasible target to go for.

Okay. And one last question regarding Germany and the PLM division recovery. With the cost savings program you have in Germany, do you feel that the division is now rightsized for the current macro environment? Or will there be further restructuring ahead here?

I mean, I think yes, we are sort of rightsized for the things as we have enough water under the bow to steer the boat going forward. But we are always focused on trying to be more efficient. So, we can't promise you that we won't do anything more. This all depends on the macro. But for the current situation, we are earning money in Germany. So, it's not a matter of that we need to do something to earning. It's more of what do we feel a good operation should perform and at what level. So, short answer, yes, we believe that we have the organization in sort of in rightsized to face the macro environment, but we will always continue to improve our efficiency.

The next question comes from Fredrik Lithell from Handelsbanken.

Maybe if I could start with sort of a clarification. Kristina, you in your prepared remarks, you talked about the move from perpetual to subscription intensified in Q4. Is that the same discussion as the 3-year and 1-year contracts? Or is this sort of another angle of something that likely took down the organic growth base than year-over-year? If we could sort of split that out a little bit.

Yes. Thank you for the question. Let me clarify that within Design Management, that's where we are talking about the 3- and 1-year contracts. When we're talking about the perpetual licenses, that is mainly within the PLM division, where we are moving away, or the customers are moving away from perpetual licenses to subscription rather. And we saw that was -- we have been communicated that throughout the year, and we saw that continue in Q4 as well. So, it's 2 different divisions that we are talking about.

Yes, that's fine. And how far on that journey are you? I mean, do we still have most of it in front of us so that most customers are still on perpetual? Or have you come a very long way on this so that organic growth ultimately will start to improve?

Yes, we have come quite a long way. This has been visible through the last 2 years that customers are moving away from perpetual to subscription. We could also see that Q4 last year, we had more perpetual licenses in the quarter than we had this year. So, it has an effect on the comparison from Q4 to Q4 this year. So, we have come a long way. And I will also bring your attention to that we are reporting this in our report in the segment section where we specify the licenses, that is the perpetual licenses.

That's very clear. And Johan, if I could ask a question to you. When you now have SolidCAD and FF Solutions being the bigger sort of acquisitions inside your organization and gotten to learn them better and all that stuff, have you discovered any sort of positives that you didn't see in the due diligence processes and everything or something that shed some more light on these acquisitions?

I think in -- what it has done is to confirm our assumption why we would like them to join us and be part of Symetri Group that they are great teams in the different organization. They have strong positions in their respective markets, and they have a culture of growth and taking on the system of the customer. So, if any, it's just confirmed and that we believe that they are -- will be a good part. And the one you mentioned will be a good part of the wider Symetri growth as the [indiscernible]. I think it's more of a confirmation of what we thought about and what we hoped about that they could deliver. So, we're happy.

The next question comes from Daniel Thorsson from ABG Sundal Collier.

Yes. A question on central costs here on EBITA, SEK 13 million in Q4 looks quite low to me. Are there any one-offs in there or any guidance comments into the coming quarters? I would rather guess slightly above SEK 20 million.

Yes. You're absolutely right. We had an effect on the OpEx this quarter on the central cost. And the majority of that is based on the bonuses that we are target -- the bonuses is targeted on growth. And as you can see that the growth has been very moderate from the quarter, we had to release some of the bonus reserves. So that was an isolated effect in the Q4.

Is that around SEK 10 million or...?

The majority of that is relating to bonuses, yes.

Okay. That's fair. And then on cash flow based on your graph that you follow up with now every quarter, do you expect full year '26 free cash flow to EBITA to be back to your 70% line on a reported basis? Or should we think more of the beginning of '27?

Yes. I think what we also communicated in the past is that we still have this year 2026, we will see the upward trend coming by the H2 2026. But we're not expecting to be up at the full level by the end of Q4 next year.

Okay. That's clear. And then final question, how do you see your internal organic net recruitment activities ahead, given improved productivity from AI on your software engineering side? Should we expect a slower personnel ramp in the coming years due to that compared to historically?

I think we have been slower on recruiting for the last 2 years, I would imagine. So -- and I guess that will continue as we are becoming more efficient in the way we are operating and doing things, partly with the help of AI, but also, we don't expect any higher sort of total organic growth. But within that, there can, of course, be changes when you look at new capabilities and things. But on an overall level, we don't expect any high recruitment rates.

Okay. That's fair enough. And then final question on the Nordic public market outlook for kind of IT investments in 2026 here, Process grew 4% in Q4. What's kind of your outlook view? What do you hear from your customers on planning investments in '26?

I think we expect a little bit what we have had this year. We can see some organic growth related to new sort of function futures, deliveries. There are some price increases which are related to our maintenance agreements, roughly about 40% plus is our maintenance agreements in this section, and those are KPI related to prices. So, there are some possibilities to increase prices. Will it be 2%, 3%, 4% organic growth? Let's see, but there are some opportunities to organic growth as well.

The next question comes from Fredrik Nilsson from Redeye AB.

I want to start with a question about SolidCAD there. As far as I understand, you have the ambition to add consulting services over time. Are those initiatives ongoing? Or could you give us some kind of time line for that?

I do appreciate your sort of thoughts about our abilities to implement the changes, but they have only been part of us for 2 months. So, we haven't seen any effects of it yet. So, we are discussing, of course, and this has to be handled with the local management of SolidCAD because they are the ones who know the business. So yes, it's happening. We are discussing growth plans and things going forward. But no, we haven't seen an effect of it yet. So, it's still to come.

Great. And also, one question regarding AI. I mean it's interesting to see your customer solutions and initiatives and so on. But if we look at the risk side, I mean, it's a big focus right now on software companies in general. So, I mean, do you see any risk of customers developing in-house software rather than buying from you? And I guess perhaps smaller add-on point solutions might see the highest risk.

Everything that is sort of, like I said, smaller point solutions where we can't add any value, they are always at risk because we need to prove for our customers that we can help them with both the software and the processes and the routines to make that happen. So, short term, we don't see the risk sort of in reported net sales.

Long term, we need to always be proactive, making sure that we are helping our customers with the needs that they have. Like the examples that I have shown you today, our partners are also investing quite heavily with regards to bigger partners like Autodesk, Dassault Systemes also Esri in the U.S. So, yes.

But I think the way we look at it is a continuum of what we have always been doing for the -- as a group for the last 20 years. And a good example, I mentioned Decerno there, who has done the solution for Stockholm [indiscernible]. In the '80s, they started Decerno AI already, working with neural networks. So, from that perspective, there are some capabilities. And now it's all in a connection where everything is happening with the databases, language model, et cetera.

So, for us, it's still an opportunity. But we are investing. Our customers are investing, and we are all hoping that really, we'll get the benefit of better improvement going forward. But most of the benefits we've not seen yet. So, I think it's a learning process. We think that we are positioned, and I think we're still important to be the one that connect the customer demands with the software and gets the benefit out of that. So yes, it's a risk, but it's also a very big opportunity for us.

[Operator Instructions] There are no more questions at this time. So, I hand the conference back to the speakers for any closing comments.

Thank you for taking this time to listen in to our presentation and some very good questions. And with that, we would like to say thank you from Addnode Group.

Thank you.

Welcome to the presentation of Addnode Group's Interim Report January to September 2025. [Operator Instructions]

Now, I will hand the conference over to the CEO, Johan Andersson; and CFO, Kristina Elfstrom Mackintosh. Please go ahead.

Hello, everyone, and welcome to the presentation of the interim report for the third quarter of 2025 with Addnode Group. I'm the CEO of Addnode Group, and I also have with me our CFO, Kristina Elfstrom Mackintosh, who will help me out today.

Looking at the agenda, we will spend some time on Addnode Group, looking into Q3, talk about the divisions, spend some time on the financials and the balance sheet, and then we will open up for Q&A.

So Addnode Group, our purpose is all about digitalization for better society. We operate, acquire and develop entrepreneurial companies that provide digital solutions. For innovation and continuous development in close collaboration with our customers, we create digital solutions for specific needs. The software and digital solutions that we provide are used to design buildings, infrastructure and cities and also the products that we all use every day like cars and all the way to life science instruments.

When things have been designed and built, it needs to be maintained with a life cycle perspective and the public sector has also responsibility for rules and regulations. Our digital solutions make all this possible. Talking about our third quarter, before we go into the highlights, there are -- there are a few things that we're going to discuss earlier.

But the highlights first, we can see that we have a stable market. We had a high rate of acquisition activity and improved efficiency. Our EBITA, if we adjust for the early contract renewals that we already disclosed in the second quarter, we have had a positive effect on that, and now we have a negative effect of SEK 70 million. If we put -- add that back to the results, you will find that our EBITA was SEK 290 million compared to SEK 200 million, so an increase in underlying results.

We have published new financial targets that will confirm our existing strategy, and it sets also more ambition aims in terms of growth and profitability. We have done 6 acquisitions and SolidCAD, the biggest one is expected to contribute to EBITA with SEK 120 million. We have also extended our credit facilities on more favorable terms to support our future growth.

So, when we look at our highlights, Q3 2025 from a financial perspective, there are a few things that we would like to add as well. For those of you who have followed us for a longer period, you know that we had a year with new transaction model for partner software and reclassification of third-party agreements. This has benefited our business, but the changes have made it more difficult to follow our performance of net sales.

In this presentation, we will compare our performance with pro forma figures that have been adjusted to reflect the scenario in which the new transaction model for partner software and reclassification of third-party agreements have been in place already in 2024. This is the same pro forma that we presented at the Capital Markets Day, and that you also can see in our interim reports.

The good news is that, this is the last quarter that we have to compare with a pro forma to better evaluate our performance. When we present Q4 2025 and compare it with Q4 2024, it will be like-for-like.

Starting this quarter, we are also presenting distribution of net sales on own software, third-party software and services. So, with that as an introduction, let's look at the financials for Q3. As I already mentioned, looking at EBITA adjusted for early contract renewals increased to SEK 290 million. But you can see the EBITA of SEK 149 million, you add the SEK 70 million and then we end up with SEK 219 million to compare with SEK 200 million.

And as previously communicated, as I discussed, a number of the 3-year deals that would normally have been renewed in the third quarter were renewed early in the second quarter. These early contract renewals increased EBITA in Q2 with the SEK 70 million that I mentioned, but it has reduced EBITA by the corresponding amount in this third quarter. However, the net impact over the year is neutral.

Looking at the market trend, we have a stable business in Nordic countries, U.K. and the U.S. The German market, however, remains weak. We are still in a position where we don't have push from our customers. We have to work with our customers to make things happen. Our business model with 60% recurring revenues is a strong foundations for our business. If you to look to the right, you can see that we still on a 5-year progression are having a significant growth.

So, to sum up, it's a stable quarter. We have done a lot of acquisitions, and we can see that the market is quite stable in the areas where we are.

So, with that as an introduction to the Q3 results, let's move to the things that we have done in the quarter as well. And one of the things that we have done is that we have held our first Capital Markets Day at which we presented new financial targets that confirm Addnode Group's existing strategy and set more ambitious aims in terms of growth and profitability.

The new targets are that we will have an average annual EBITA growth that will amount to at least 15%. That corresponds that we would double our EBITA every fifth year. The EBITA margin should be at least 17% every year. Net debt shall not exceed 2.5x our EBITDA. We have an unchanged dividend policy.

To achieve our financial targets, we are now pursuing a plan consisting of an increased focus on business development, clear prioritization of investments in our digital solutions, more measures to improve our internal efficiency, and we increase our capacity to make value-creating acquisitions.

So acquisitions. We have announced 9 acquisitions so far in 2025, which are expected to contribute total annual net sales of approximately SEK 700 million and it will strengthen our EBITA margin.

In the third quarter, we closed the acquisition of Genus in Norway, whose net sales for 2024 amounted to approximately SEK 165 million. Genus offers a no-code platform for case management and business applications. The company is now part of the Process Management division from Q3 and has strengthened our position as a leading player in mission-critical case management systems in the Nordic region.

The acquisition of the Dassault Systemes' partner X10D Solutions with a net sale 2024 roughly around SEK 40 million will strengthen Technia's offering to the Nordic manufacturing and defense industry and increase the market position. This transaction is subject to conditions and is expected to close in Q4 2025.

In Q3, we have also done more acquisitions. And the 3 you can see on this slide is acquisition that will strengthen Symetri in the division design management. Symetri has successfully grown organically and by acquiring and integrating other Autodesk partners, supported by a strong portfolio of proprietary software and professional services.

And during the third quarter, we announced several acquisitions for Symetri. FF Solutions is the fastest-growing platinum partner in Brazil, providing an entry to the dynamic Brazilian market. SolidCAD is the largest Autodesk Platinum partner and the market leader in Canada and is expected to contribute with an EBITA of SEK 120 million. We expect to close this transaction in Q4 2025. FF Solution is already included in Q3. We also made 2 asset deals of customer bases in the Q3 that is recognized as part of Symetri in Q3.

The combined net sales of these acquisitions to Symetri are expected to amount to approximately SEK 420 million. These acquisitions together strengthen Symetri's global footprint, provide a platform for further growth in North America and Latin America, and will contribute to increased profitability and margins. We still have several active acquisition process underway, and acquisitions are an important part of Addnode's growth strategy and our ability to reach our financial targets.

So, with that as an introduction to Q3, we'll later come back to our divisions. I would like to hand over to Kristina to introduce our new credit facilities.

Thank you, Johan. And as we announced now in October, this week, we have refinanced our current existing credit structure, which consists of 2 parts. We have a term loan, which was increased from SEK 1 billion to SEK 1.7 billion. We also have a revolving credit facility previously at SEK 1.6 billion, which is now SEK 2 billion. And we also announced that this refinancing was conducted in a more favorable interest terms. And these 2 loans, the term loan and the RCF has a tenure of 3 years with an extension of 1 plus 1 possibilities.

We're also very pleased to announce that the Swedish Export Credit Corporation SEK has joined the current bank club, which consisted of Nordea and SEB in the past. And also, this extension of our credit facility supports our growth plan going forward.

And I'm going to hand back to you, Johan.

Thank you, Kristina. So Addnode Group, 3 divisions, Design Management, Product Lifecycle Management and Process Management. There you see the distribution of net sales, gross profit and our share of EBITA in the 3 divisions.

So, looking more in detail to Design Management. Synergy, the biggest company in the division, noted stable demand in Brazil, U.S. and U.K. for customers in the infrastructure, construction and manufacturing industries. In the Nordic countries, demand from the manufacturing industry was somewhat weaker. The other 2 companies in the division, SWG and Tribia delivered a stable earnings performance compared with year earlier period.

EBITA decreased to SEK 51 million compared to SEK 118 million, but having adjusted for the SEK 70 million related to the early renewals of Autodesk contract that was moved to Q2, the adjusted EBITA of SEK 121 million was in line with EBITA in Q3 last year. Doing the same adjustment for net sales, we see that the net sales in Q3 were in line with the same quarter last year. The division's acquisition in U.S. and Brazil has been successfully integrated into the division's operations and contributed to earnings according to plan.

If we look at product life cycle management. Sales of PLM systems and related services showed a stable trend in the U.K., Nordics and the U.S., where we have a broad customer base spanning manufacturing, defense and life science industries. Sales to the strategically important Aviation and Defense segment remained strong during the quarter. The market situation in Germany remains challenging.

EBITA increased to SEK 42 million compared to SEK 39 million, and the EBITA margin increased to 9.7% compared to 8.3% last year. The measures implemented to adapt the organization and cost structure, which were communicated in the first quarter, have proceeded as planned and had a positive impact on earnings in the third quarter. And that meant that EBITA increased by 8% year-on-year.

The trend towards customers increases in fixed-term leasing models rather than licenses with perpetual rights of use remains firm and is continuing. Process Management division delivered yet another strong quarter with growth and an improved EBITA margin. The division's net sales increased by 24% and EBITA by 34%. This marks the fifth consecutive quarter in which the division's EBITA margin improved year-on-year.

EBITA margin increased to 21.8% in this quarter compared to 20.1% last year. EBITA was positively impacted by price adjustments, increased operational efficiency and contributions from acquired companies. The acquisitions, of which Genus was the largest, have been successfully integrated into the division's operations and are contributing earnings according to plan. And the climate for the division remained unchanged. We can see stable demand for case management and geographic information system for the public sector compared to last quarter.

So, with that as an introduction to our business and our division, I will hand over to Kristana, our CFO, who will walk us through the cash flow and the balance sheet.

Thank you, Johan. I'm going to go through the cash flow for the quarter. And you can see here from operations that we have improved the cash flow from operations from minus SEK 133 million last year to minus SEK 64 million in this quarter.

We can also see that the main impact was the changes in working capital that we still have -- we are still affected by the changes of the payment terms for Autodesk 3-year contracts. And we have already communicated this earlier and also highlighted this effect in our Capital Market Day. And it's just to rephrase what that is all about is that until 2023 for Autodesk payments, we received the full 3 years payments from customers upfront. That changed in 2023, and we are now receiving only 1 year at the time. So, we have a temporary working capital drag. And we can also see that we -- the impact of the cash flow is gradually decreasing, and we expect it to normalize by the second half of 2026.

Looking at the cash flow from the investment activities of SEK 615 million mainly relating to the acquisitions that we have done, also earn-out payment was made during the quarter. And from the cash flow from financing activities in the quarter amounted to SEK 298 million in comparison to minus SEK 25 million in the past quarter, and that is mainly relating to new loans drawn for the acquisitions, also have a small impact on the leasing of minus SEK 27 million.

And then we're going to go and just look at the highlights of the consolidated financial positions. And I would just like to highlight a few areas in the consolidated balance sheet. And just please pay attention that this is the operational balance sheet and not the balance sheet presented in our report. And we continue to operate supported by a resilient balance sheet. It's an important foundation for our continued growth organically and through acquisitions. The increase in the balance sheet since the beginning of the year is primarily driven by the acquisitions, which have contributed approximately SEK 600 million in intangible assets and goodwill and it's mainly derives from the acquisition of Genus and FF Solutions.

Provision taxes and other liabilities remain at approximately same level as in December. And included here are the provisions for earn-out and other liabilities to sellers, approximately SEK 505 million in total, of which earn-outs are SEK 440 million.

Net debt has increased to SEK 1.9 billion, and the increase is by SEK 866 million is mainly for the new loans for acquisitions. And the cash position amounts to SEK 339 million compared to SEK 441 million last year.

Equity ratio amounts to solid 31% as of September and return on capital employed has decreased slightly to 17% from 18% in the previous year, driven by higher base on relating to acquisition. And as of September, we had a total available facilities in the RCF of SEK 1.6 billion and approximately SEK 1.3 billion was unused at that time. And as already explained, we had refinances in October, which we communicated and the facilities have increased after.

And I would also like just to explain a little bit more about the cash generation and what has happened during the year. And our business model is characterized by an asset-light operations with moderate working capital and R&D requirements. We have strong cash generation supported by upfront payments. But you can see in this graph, which we also presented at the Capital Market Day, over the past decade that cash conversion, which is based on the free cash flow in relation to EBITA has come down after 2023.

We used to be at around 70% cash conversion. And you can see a temporary drop, which is related to the drag of payment terms, mainly from Autodesk, when the payments in the past were paid -- were done all the three years in advance. But I would also like to emphasize that we're not losing cash. It's a temporary working capital drag. And we -- the impact of this cash flow is expected to normalize in the second half of 2026, which I previously also mentioned. And we also believe that we are now at the low point of the EU, which you can see in this graph.

And I'm going to hand over back to Johan now.

Thank you, Kristina. I'm going to end with a follow-up compared to our financial targets. If you remember, we are now an EBITA growth expected of 15%, EBITA margin of 17%.

So, I believe we are delivering on our growth strategy where we combine organic growth with value-creating acquisitions. If you go all the way back to 2015, you will see that we had an EBITA of SEK 168 million. And today, we are a rolling 12-month EBITA in Q3 of SEK 854 million. That means that for the last 10 years, the compound annual growth rate of our EBITA has been 18%, and we have moved EBITA margin from 9.6% to 14.9%.

Our financial targets now is to grow EBITA with 15% year-on-year, meaning that we will continue to double EBITA every fifth year. Part of this is that we aim to move our EBITA margin to 17% from the almost 15% that we are today. The acquisitions that we have announced lately will add to the EBITA growth and our expansion of EBITA margins.

There is good demand for the business and mission-critical digital solutions that we deliver to our customers in various industries, including construction and property, infrastructure, manufacturing, defense, aviation, life science and the public sector in both Europe and the U.S.

The economic and geopolitical situation remains uncertain, which is primarily affecting our customers' decision-making processes regarding major transformation investments. The market situation is considered from our perspective, stable for most of the group's business, although some regions and industrial segments may take a few more quarters to recover. Our business model with a large proportion of recurring revenue is a source from security in more uncertain times.

So, with that, I would like to open up for Q&A.

[Operator Instructions] The next question comes from Thomas Nilsson from Nordea.

When it comes to the Process Life Management division, what is your current thinking on the German auto industry? Will it be stabilizing? And could you perhaps talk a bit more about the effects from the cost-saving initiatives as the division is performing clearly better with a 10% EBITA margin now in Q3?

Thank you, Thomas. I understand Product life cycle management we're discussing. And regarding the market in Germany, I think we are all trying to figure out when or how that will transform. We can see there are a lot of initiatives from both government and to sort of the funding drips out into the market. We haven't seen the effect of that yet.

So, if it's going to be the next quarter or the quarter of that in 2026, we don't know. But as we have mentioned, we are planning to make sure that we are able to make a healthy margin even in this market where we have today that we can see the effect of that in the cost reductions that we have done over this year, and they are playing out well in Q3 here. But we haven't seen the full effect of the cost efficiencies yet. So, will -- there are some more that we can sort of see hopefully in Q4 as well on that.

So, with regards to the market, we are making sure that we can be efficient in the existing market conditions. When will the turnaround be in Germany? I think your guess is as good as mine on that subject.

The next question comes from Erik Larsson from SEB.

I'll take my questions one by one. If we start on Design. If we adjust for the SEK 70 million in Q3 -- Q2, you grew EBITA by 17% year-on-year. And if we do the same here in Q3, you grow EBITA by 3%. So, it looks like a slowdown. Clearly, it's a lot of moving parts here, but has anything changed in the market or something there that could explain the difference?

No, it's not a slowdown if you sort of look at the growth. We have a higher growth in -- reported in Q2 than in Q3. So that's not a fact. The effect is more that we have a variation in our renewal -- underlying renewals of the subscriptions. I think that's more to the effect. So, like we mentioned, the only where we can see a little bit of a slower market now or if it's project related, we still don't know, we can see a little slower market in the manufacturing part in Nordic.

If you look at the U.S. and the U.K. was still an okay market. In the U.S., we can see that things like the construction of data center is affecting a slower residential market. Data centers is more they use our software to design it, but everything that goes in the data center as well for coding and et cetera. So, there are -- and if you add that together, the market is roughly the same. So, it's not a slowdown from 10% to 3%. It's more a variation between the quarter.

All right. And then on cash flows, you talked about it here just at the end, how you expect the cash flows to trend in the coming year or 2. But just to zoom in on the near term here, Q3 is usually seasonally weak. The Q4 is usually a big or a rather good cash flow quarter. So, are there any reasons why this should not be the case in Q4, kind of the balance between what's going on for the past year and the normal Q4, so to say?

Yes. Thank you, Erik. I think you're quite spot on that Q4 is normally a quarter where we have a strong cash flow. And at the same time, Q3 is normally the lowest cash flow from operation quarter. And we still do -- we still have the prepayments made for some of our major customers made in Q4. So, we still expect that to be the same case.

But as mentioned, we -- the cash flow will have this temporary drag effect from the working capital through 2026 as well, Q2 and Q1. And then in the half -- the last 2 quarters in 2026, we will see a positive effect. That's our expectation.

Okay. That's helpful. And just a final question on the back of the cash flow here and you're doing quite a lot of M&A recently. How do you think about acquisitions going forward in the coming quarters here? Will you be a bit more cautious or restrictive given the balance sheet, et cetera?

No. I think this -- from our perspective, we usually say that we are not opportunistic in what we would like to buy, but we are optimistic about the timing because most of the acquisitions are from entrepreneurs. And when they are ready to go, we need to be there. So that hasn't changed.

Having said that, we -- like I said, I think we added acquisitions today with net sales combined of SEK 700 million. And we are doing our biggest acquisitions so far with regards to earning capacity of SolidCAD. So, we probably need just a few months just to handle those. But that's more from an operational perspective, you need to bring them in. You need to make sure that they sort of get integrated in the things we want to do. We're still very much decentralized, but there are things that -- when you're into a new group. So, I think it's more compared to that.

So, we are still looking at bigger acquisitions, but we are now bringing on board the biggest one. So, we're probably not expecting a bigger acquisition from that perspective, the sort of 1, 2 quarters coming here, but we are still looking at acquisitions.

The next question comes from Fredrik Lithell from Handelsbanken.

I have 2, maybe, Johan, if you could talk a little bit on the last comment you had on acquisitions. Have you seen a trend that valuations have sort of come down a little bit for you? Is that making sort of tailwind for you in terms of those negotiations would be interesting. And then also the statistics, ABI statistics from the U.S. have been a little bit slow or weak. Is that something that you can relate to on pockets of your customers? Or is it something that you don't really see anything from?

We start with valuations. I can't really say that there are so much changes in valuation. What we can see is that, sort of the companies in a wider market perspective, so the information memorandums being sent from corporate finance sort of guys are probably a little bit less right now. It might be that that's a trend we can see. But we are much more focused on bilateral sort of discussions going out to partners that we have been working with or the competition that we are.

So that sourcing is still existing. And we are quite prudent on our valuation sort of metrics. So it might be that -- it's a hard question to ask, are the valuation going down or not. And this is a very more the private market is not as quick as the stock market to reflect changes in the world around us. So, the prices are usually the same, but the available companies can go up and down compared to anyone who wants to sell to those prices.

It's like when you are thinking about selling your own house and you have an idea about how much your house is worth. And even though your neighbor is selling at a less price, you sort of think that your price is still worth the same price like it was 2 years ago. And then you probably wait a year to sell it instead. So that's probably -- those sort of dynamics that we see in the M&A market where we act.

And then we had a question about statistics and macro data from U.S. And yes, we can see, for example, residential market in the U.S. is not a growing market. But on the other hand, we can see that, for example, we have a lot of customers who are building all the new data centers being used when they're going to harness the power of AI. So that means that those customers, they want to design it, they want to build it and then they need also help with services with regards to BIM coordinators, the guys who are going to handle all the big complex digital model is going to come out of it.

And also the guys who are delivering all the cooling systems into the data centers need to be part of that. So, you have sort of -- yes, residential market not growing in the US. But if you look at that type of infrastructure data growing and the mix of that is the reason why we can say it's still a stable market for us.

There are no more questions at this time. So, I hand the conference back to the speakers for any closing comments. The next question comes from Fredrik Nilsson from Redeye.

All right. One more question...

I thought I was in the queue, but apparently, I wasn't. Sorry for that.

But now you are. So please go ahead.

Yes, yes. Regarding process and demand from larger authorities for larger projects, I note a slightly more positive wording. I think you changed it in the last report actually, but I noticed this time. So, I mean, is that correct? And is that something that could have a positive impact on growth over the next 2 quarters?

If you look at -- it also -- I think it's a combination in that we are now also more active in Norway with the Genus, and they have -- so I think the combination -- so it's not that we are saying that we have a much more positive market in Sweden. It's still a -- we have a market there. We are working with our customers. But we can't -- we can't say that we have much higher degrees of tenders available that we can sort of deliver on. That's not the effect. But I think it's more an effect that we are also adding more in Norway. So it means that we can be, if any, a little bit more positive on the whole.

Great. That's clear. And regarding the lower demand from Nordic manufacturing customers, could you just remind us of what kind of customers design management has within that industry in the Nordics?

It's a combination of both customers who are both using sort of design software, you will find -- it's a mix of reflecting the industries in the Nordic country. It means that you will find the OEMs, and you will find the big manufacturing companies. And they are using the software, both for design things, but also for keeping -- have a good definition of all the product data management, all the data being created when they're doing design.

So, I think our customer base here reflects the customers mainly in what you will find in discrete manufacturing and the neighboring OEMs around that. So, there's a customer base. And as I mentioned, we have probably a little bit of a fewer -- sort of the scope of the projects because we have services as well to handle the product data is probably a little bit less, and that has an effect on us. So that's when we're seeing less demand.

So the scope of the projects of integration and services when handling all the product data that they create in the design phase. It sort of goes back to the major sort of customers a little bit hesitant to do bigger transformation projects. So, it relates to that. So it's not a new trend, but we can see that we also have that trend in our customers.

On the other side, if you look at the Process division -- sorry, Product Lifecycle division, they can see that they are having a growth in the discrete manufacturing area this year. So it could be that it's an effect of our sort of customer base right there. So, it's a mix there. So, it's not that sort of big decrease, but we can see that we're doing less with existing customers in design management in manufacturing in Nordics, if that makes sense. Any more questions?

There are no more questions at this time. So, I hand the conference back to the speakers for any closing comments.

We have one more.

The next question comes from Daniel Thorsson from ABG Sundal Collier.

Understood. It was in the final second here of the Q&A. I missed part of the call due to some coinciding calls here. But I have a question on the cash flow. I heard Kristina's responses here on the operating cash flow. But at least to my expectations, the investing cash flow was also a bit higher than I thought, excluding M&A, so intangible and intangible assets. Did you comment that? Did you say why? And should we expect this level going forward?

From investing activities.

Yes.

Yes. It was also -- apart from the new acquisitions that we made, it was also the earn-out payments for Microdesk that we've been talking about before. I was also….

Yes. I was thinking about CapEx.

Yes. Okay. Yes. We have done the asset deal in the U.S., which are included in that number.

Okay. So should we see that -- so should we see this level as a good proxy going forward then or slightly elevated this quarter.

Yes, it is increased by approximately SEK 60 million relating to the assets.

Okay. SEK 60 million up because it's up like SEK 80 million year-over-year or so. So, we should expect that to come down in Q4 already.

Yes, unless we do other asset deals that we have not communicated. But you should look at the level as in before.

[Operator Instructions] There are no more questions at this time. So, I hand the conference back to the speakers for any closing comments.

So, thank you all for listening in today and very good questions as well. So, with that, we will close the presentation and keep on moving to Q4. Thank you.

Hello, everyone, and welcome to Addnode Group's first ever Capital Markets Day. We've been doing it for plus 23 years now, but this is our first opportunity to invite you and tell you more about the Addnode Group. And a special welcome to you who are listening to us from the webcast as well, and you here in the audience in Stockholm.

And just to start off with that, there's going to be a Q&A by the end of the day. For you listening on the webcast, you have the opportunity to already now submit your questions. Look in the upper right corner to the right, you will find a little bar that says ask your questions. It is open now and it will be open during the whole day. And as told you, we will finalize with the Q&A.

Having said that, welcome, everyone. So I'm the CEO of Addnode Group, Johan Andersson. I've been fortunate to be part of this group already since 2006. I think I've made one of my best decisions ever in 2006, when I decided to answer an advertisement in the Swedish newspaper, Dagens industri, that said they were looking for someone who can handle both M&A and Investor Relations. And that was the start for my journey in Addnode Group in 2006. So I've been part of the group since then. I've been the CEO since 2017. I have a previous history also in corporate finance and another listed company. But my main journey has been with Addnode Group all the way since 2006. And later today, I'm going to tell you a little bit about the history of Addnode Group as well.

But what can you expect today? You can expect 4 things, at least. We're going to give you a strategy update. We're going to talk about our priorities ahead. You're going to get an opportunity to further introduction to our divisions. And we're also going to introduce our new financial targets that we published today. And as you know, no one can move this by himself. So I have a great team with me today, our executive management team, sitting here to the right. For you who are listening to us on internet, you can't see them, but for you who are in the audience who're sitting here. And they're going to form the agenda with me today.

I'm going to start out with strategy and priorities. Jens Kollserud is going to introduce Design Management. Magnus Falkman is going to introduce PLM division. Andreas is going to introduce Process division. Kristina is going to talk about financials. And with us, we also have our Head of M&A, Elizabeth Forslin. And we're going to end up with a Q&A.

Just one thing I want to say to you is that we have published a pro forma today with our net result and net sales for the last 10 years. And that has to do with, in 2024, there were some changes in the way the buy-sell model for Autodesk software that we provide in our division, Design Management. That moved from the buy-sell model to an agency model. It practically meant that our net sales went down, but our profit was on the same level. But to make sure that you have comparable figures, we have made a pro forma for the last 10 years. So every figure presented today is according to the pro forma, so you get comparability between the different years. I just want to point that out. So it basically means that net sales is down, EBITDA the same, margin goes up, and we report in Swedish SEK as a currency.

So with that as a basis, let's move on to the strategy.

[Presentation]

So what is Addnode Group's mission? We operate, acquire and develop entrepreneurial companies that provide digital solutions. We're going to explain more about that, what we mean by that and how we're going to do it. And we're going to talk first about set the foundation of Addnode Group, talk about our mission, culture and governance, and end up with a strategy.

So if you look at -- we are predominantly operating our business in 2 areas. For us, it's essential to have a focus on a few verticals where we can provide value to our customers, but also we, as a group, can provide value to the different companies in our decentralized organization. So focus is important in that sense. And it means that -- if you look to the left in the presentation, you see what we call Design and PLM. That's software, digital solutions for anyone who want to design something, simulate data and also take care of the data going forward. So that means that a customer can be an architect, designing houses and infrastructure; can also be an R&D department in one of the OEMs or manufacturing companies when they are, for example, are designing a new car or the new trucks that are going to be developed and maintained out to the market.

And then if you look to what we call the Process side, you will find digital solutions for central and local government, meaning that we started out sort of in an engineering perspective, moving out to what's happening in the public world, then we are local municipalities, technical departments, building permits, environmental permits, but also maintaining the infrastructure that the local municipalities are responsible for. That means that we do a lot of geographical information solutions. Andreas is going to talk more about it later, and the guys are going to explain it. So that's an area where we are.

And what sort of connects these 2 areas that usually end up in some kind of digital twin? All this data is going to be visualized through a digital twin. And in the building world Design and PLM, it might be called a BIM model or we call it a virtual twin. And then the same, when you go to the local and central government, it could be the way you plan a city, then you also end up in a virtual twin. So these are the areas where we are. I think that's important to understand our strategy going forward.

But a good thing is that we can see -- we truly believe that there are global trends driving the structural growth in these areas. And we're talking about digitalization, AI, smart cities and sustainability. I'm going to walk you through what we mean one by one. Everything we do is to make sure that our customers are getting the benefit of becoming more and more digitalized. It means that we provide a digital solution so they can become more efficient, both internally, but also in the way they create new solutions for their customers to create value. So that's the growth driver, and that's something we've sort of been driving our growth for the last 20 years, and we truly believe it's going to continue to drive the growth.

What's new and what everybody is thinking about is AI. But for us, it's just a prolonging how can we become more efficient and how can we also help our customers to become more efficient by infusing AI in the different solutions that we provide to the customers. But it's also what our partners, and we're going to talk something about Autodesk and Dassault, for example, today. They are also investing a lot in this area as well. So we think it's something that's going to help us drive growth, but it's also something that's going to help us be more efficient going forward.

And one of the things that's important for Addnode Group is the growth of the cities. What do we mean by that? Because that's sort of the core of where we end up. Someone needs to plan the cities, you need to design it and everything within it, and you need to maintain it and then refurbishment to start over. That means, for example, we provide the software for anyone who is going to handle the building permit and also the planning of the city, the building of the city, are going to design software for that, and also creating the digital twin or virtual model of it, also maintain it, but also all the things that's going to be built that goes into the city is also game plan for us. So every time I see a construction crane walking around in a city, I'm extremely happy, because that means that Addnode Group is making money in some sense, because everything is the growth in the building. That's very important for us. Talking about AI, IoT as well is also a part of that as well.

And then sustainability, why is that important? Of course, it's something that we want to improve and help with, but it's also something that drives our business. For example, an architect, making decisions about design, cost, but also what type of materials are using. And we can help with that software when you make all these choices, trying to optimize. That's a part of how we think about sustainability driving it. It also helps with the local municipalities, how we can be more sustainable in all that area. So for us, sustainability is how can the customers create more sustainable products, become more sustainable with the digital solutions that we drive. So that's something that drives innovation for us, very important.

And if you then look at how we are organized, we are organized in 3 divisions, and you're going to get introduced to them in more details later today. We call them Design Management, Product Life Cycle Management, and Process Management. And you can see that Design Management is the biggest with SEK 2.5 billion in net sales; Product Life Cycle Management, SEK 1.8 billion; and Process Management, SEK 1.3 billion. And this adds up, to Addnode Group, the SEK 5.6 billion that we are.

And I would like to take the opportunity to highlight what are the digital solutions that we provide to our customers and what sort of are the essence of them. The software that we provide, they are mission-critical to our customers. It means that they need them to do their everyday task. I gave you some specific examples. But also if you look at the public sector, if you're working in the public sector, you handle cases and you handle them by the case management system provided by our people in the Process Management division. If you work in an R&D department, making sure that you are bringing new products to the market, you're using the software from TECHNIA in the PLM division.

If you're an architect or if you are working to maintain the buildings and the infrastructure, you're using the software from our team in the Design division. So it's mission-critical for the people that we work with. It's also high customer retention, because it's not that easy to change this to another type of software, because it's heavily embedded in the different processes that you actually are using for everyday work. So both mission-critical and a high customer retention.

And as you can see on the bar here from 2015 to 2025, when we've gone from almost SEK 2 billion up to the SEK 6 million that we're closer to now, you can see that we have kept the -- how that sales is divided. For us, it's important that we deliver a combination of own software, third-party software, and the services that we provide. That means that we provide a digital solution. In the bottom of it, you will find a software. We integrate that with other softwares, because in the software, a lot of data is being created and it needs to be moved to other systems as well, and we need to import data from other systems to make this more valuable for our customers. So that means that we will have integration implementation on that side.

So if you look at the circle diagram here, you will find that almost 42% of our net sales is the third-party software that we represent, 23% is our own software and 35% is the services, the implementation integration. But usually, we provide this to the customer as a bundled solution. It's not a separate selling third-party owned software and services. It's a bundle that creates the offering of the digital solutions to our customers. And this is some new information the way we're disclosing the distribution of net sales today.

Another thing that is important in our business model is that we believe that we have a high degree of recurring revenue. And that provides predictability, because in the beginning of the year, basically, you know a lot about how much your net sales is going to be distributed over the year. It makes it easier to plan, it makes it more predictable. But this is also a commitment for our customers that they are willing to use the software over and over again. And most of this is also prepaid, so it has a good impact on the cash flow as well.

And as you can see from the bar from 2015 to 2025 here, we've been able to increase the recurring revenue from roughly 53% to the 63% we are today. And that has been done both organically, by developing the different offerings we have to our customers, but also from acquisitions that we have acquired a company with a higher degree of recurring revenue. So I think looking at where we are at the 63%, we can increase that a little bit, but it's a fair assessment of probably where we are going forward, because you have to realize recurring revenue for us, that's the contract for the right to use the software. The services and implementation that are mostly of a recurring nature, because we work with our customer, is not included in the 63%. But we have a lot of services that could be argued to be of a recurring nature.

So where are we in the world? We are starting more and more to call ourselves a global group. It means that we started out in Nordics almost 20 years ago, then we moved our operation into Northern Europe, U.S. And lately, our latest addition is Brazil. So that means that we are active in 20 countries on 5 continents. The majority of our business is in the Nordics, Northern Europe, and in the U.S.

And to understand where we are today, it makes sense to start where we're coming from as well. So Addnode Group, the inception of Addnode Group was in 2003, when it was our first day at the stock market. The last 3 years -- the first 3 years, sorry about that, Addnode Group started out. And during that journey, it's important that TECHNIA and Cad-Q, that later became Symetri, came in, in Addnode Group. That's the foundation for our 2 divisions, Design and PLM. And during that time, as TECHNIA came in, at that time, Addnode Group's cash flow was not as good as it is today. So at that time, Addnode also paid with shares. So that was also the time when Staffan Hanstorp and Jonas Gejer also became the majority owners of Addnode Group. So they've been part of Addnode Group since then and are still the majority shareholder for Aretro Capital.

And in 2007, Staffan Hanstorp became the CEO, and he was the CEO for 10 years. And then in 2017, we changed over, so to speak, that I became the CEO and Staffan Hanstorp is the Chairman of the group. I think that's important to tell you, not that I want to tell you how long I've been the CEO, but to look at how long people stay in this group. I think that's important for us. And we can also see that in 2014, 2015, we started to move outside the Nordics with the acquisition in Germany and the U.K. And then we built upon that with further acquisition in the U.K. And in 2022, we were ready for our next step, moving over to the Atlantic and over into the U.S. And then as I said, the latest sort of step was in Brazil and Latin America, and let's see how that's going to play out. That's some of the important milestones in Addnode Group.

And what has this led up to? Yes, this has led to a fantastic growth over the years. If you look at the compounded annual growth rate since the inception of Addnode Group, it's 17% year-over-year, means that the linear growth through these couple of years. Then we have some years with much better growth and some with less, but on average, 17%. So I think, for us, it's been an amazing journey.

But if you look at culture, values and organization and governance, how we are, Addnode Group, we perceive ourselves to be an add-on growth accelerator for companies providing technologies for a sustainable future. And this has 2 different meanings. We are an add-on growth accelerator for companies, our customers, but we are also an add-on growth accelerator to the companies within the group, Addnode. So we are creating values in 2 ways, both for our customers, but we also make sure that we, from a group perspective, are helping our companies to grow as well. And together, we are providing technologies for a sustainable future. So that's sort of our position, and that's what we're trying to be and achieve.

And how are we organized? And how do we do governance and how does this work in this decentralized organization? We are getting close to 3,000 people in the organization. And you will find that the bulk of that is in the different companies within the group. So if you look at the slide behind me, you will see that we are organized in 3 divisions. We are almost 20 different companies in those divisions. And then we are 25 people in the parent company in the different divisions supporting the different companies to grow, develop and make more business.

So that means that if you are a CEO in an Addnode Group company, you have the full P&L responsibility for the group -- for the company that you are responsible for, in agreement with the budget that we had discussed and within the strategy, and then we support you to make that happen. So that means that you have a lot of organizational freedom, but we empower financial control. So that means that you have to deliver a full P&L every month, a full balance sheet. You need to make a prognosis on the cash flow, because that is centralized, because we want to make sure that we invest the money in the right way.

And then we try to help you within the group as well, in the different divisions with different initiatives, forum and et cetera, and some things on a group level. For example, we have some executive trainee programs. We handle AI, talking about that, cybersecurity. But we are very much a true decentralized organization.

And why is that important? Because that means that decisions are being made close to the customers and close to the people, so we are ready to act when it makes necessary. You can see, we want to continue to grow this business, as we would like to do, as you have seen on the financial targets we've set. We don't want to spend time on too much governance. We need to have governance where it matters. Like I mentioned, we like financial control, but you're free to run your business, but you have to report what you're doing. And if things don't go as expected, then we'll probably have a discussion around it.

So that's sort of -- and for you who are able to see as well, you can see that you might ask why so many logos in one division and a fewer in the left. It has to do with -- there's a great opportunity for us to grow by integrating and acquiring channel partners in both Autodesk and Dassault. So that means that's the why. And then you need to get the full benefit of that. So TECHNIA is running that in the PLM division. And in the Design division, you can find that in Symetri. And then if you look at Process Management, it's more of a portfolio of software companies providing value to the public sector in Sweden and Norway. So there are 2 different governance models. One when we try to integrate to get the full value of that and one when we are integrating when it makes sense, but we are not in a hurry.

There are some things that we also ask of the people in the organization. We ask them to have an entrepreneurial spirit. We need to keep that growth, because that's our heritage. And that's also why we attract so many entrepreneurs who want to sell their company into Addnode Group. So we're trying to keep simple focus on growth and don't build too much bureaucracy.

We have a long-term view. I mentioned that we basically have had the same main all over time. Many of our owners are with us over a long time. The people who are going to come up and presenting after me have been with the group for 10-plus years as well. We have long customer relations. Some of the customers have been with us for 40 years, 30 years, 20 years. And for you who can calculate, if you know our recurring revenue, we have that much recurring revenue, and people and the companies are staying with us, means that they have to be with us for a long year to make that happen. And that's important for us.

Important is also simplicity, try to keep it simple, don't overdo it, always try to provide the best solution for the customers, make sure that you do it with the organization and the people can keep that in mind, because that's important for efficiency as well.

I just want to give you an example of how we can support these values and, at the same time, support our companies. And that's Addnode innovation. Imagine Idol. I think you've all seen that in some sense. This is the Addnode Idol. You get the chance to submit your proposal for a new idea that probably is not covered in your own company. So you submit that for a jury, and the jury consists of people in the organization, head of division. We have people from our Board of Directors, and they select some that goes through with them.

So then during a 6-month period, you have pitching stages. And then you end up in a final, where you hopefully get to be the selected one, and the selected one is selected by your peers. So every people in the Addnode Group organization votes on who's going to win that in the finals. And you get SEK 500,000 to promote your idea and make that happen. You don't get SEK 500,000 cash in the bank, but you get SEK 500,000 worth of hours and capability to make that happen. So I think that's one of the ways that we can help from a Group perspective to drive innovation and make sure that we create the values that we would like to do. So culture, innovation, very important for us in governance model, keeping the decentralized model to enable the future growth.

So if we look at strategy, we usually call it 2x strategy. It means that every fifth year, we double the business that we have. That's our history, and that's also what our financial targets implicate. And to sort of dig into that, I would explain this very busy slides. But I think it explains a lot about our strategy and what we have done and what we would like to do. A few of you might have seen it before, but if you look at the light blue bars, you will find that in 2015, net sales was almost SEK 3 billion. 2024, we're reaching SEK 5.6 billion. And in between the different years, you will find how much our organic growth has been and how much we have grown through acquisitions.

So if you look, for example, between the year 2015 and 2016, you will find that organic growth was 4% and acquisition 14%. Just to take another example, if you look at between 2021 and 2022, we moved from SEK 2.9 billion -- sorry, SEK 3.1 billion in 2021 to SEK 4.3 billion in 2022. And that was achieved through organic growth of 12% and acquisition 26%. But as you see the difference here, we are not the kind of company that grows linearly. But we have a consistent growth over time and probably that's one of the measures that I would like to relay as well.

And then if you look at the boxes in the middle, between there, that has a number, the green one, that's the number of acquisitions we have done each year. So that means that we have been growing roughly by acquiring 3 to 7 companies each year. And this year, we have done 7 acquisitions so far. So this is a journey we have been on, and this is a journey we're going to continue. But I think what's very important in the business that we are is that we create the cash flow for our growth going forward to make this happen. So I'm going to spend a few minutes talking about how do we think about creating value and helping our customers and what that generates and how that ensures that we can continue our growth.

We talked about we have 2 opportunities how to grow, both for acquisition and organic growth. When a company becomes part of Addnode Group, we start with installing financial controls. It means that these entrepreneurs have been very good at driving their business, but not so very much focused on monthly, quarterly and yearly results. It might be a period where they said, "Okay, we can't deliver monthly reporting 4 days. It's not going to happen. Never." And then it happens, and then we start delivering that. And then they are happy that they're able to see how much the company is generating every month and not every year. That's a period where we go from. It creates a lot of value for them.

We look at the cost structure, how can it be more efficient? We talk a lot about go-to-market strategy for the software and the services that you provide, because there are different ways of doing that. Let's see if we can add some technology and products to the customer group that you're already attracting? Can we look at the service offering? What type of services are you delivering? How are you delivering it, and when are you delivering it, and what are the business model for that as well? All this adds up to growth in net sales and that we're able to expand our margins.

And why is that good? Because -- and of course, I talked about how we can help the different companies as well. So I'm not going to spend more time on that. But it adds up our possibility to reinvest in our business, acquire more companies and pay dividends to our shareholders. So that's how we distribute our capital. And then we start all over again. I think that's been very important for our journey.

We talked a lot about acquisitions. We've done 90 acquisitions over this period of time. I'm not going to go in the detail of every one of them, but I just want to show you where we are coming from and what we have done, and this is something that is sort of in our DNA in the organization, all the way from the Board down to the people in the organization who are actually the best scouts for new acquisitions to be made.

So we support our different companies to grow, but there are certain criteria that we can see go across the whole organization that's important when we look at acquisitions. And that is we're trying to find new nodes that add nodes to Addnode to create value, if you see, my boy. That's where we are. We try to go and add more value. And if you look at what we are looking for, either we can add new geographies, we can consolidate the markets that we are, or expansion. And we're looking for new customer segments as well that can drive the business and technology.

But what's more important is probably the people and the offering that we're looking at. So for us, we are focused on mission-critical software. That's where we are. We're not a consultancy company. We do provide a lot of services, but that's not a separate offering. For us, service is something sort of necessary, not the right word, but something that we do to connect our software with other software.

We do believe that it needs to have a strong customer retention and high switching costs. We want a customer to stay with us. And it's also important that the company has a strong brand in their customer market and also the people, where people want to work. And we encourage the founders of the companies to stay on. And that's very important for us. That means that we have to look at the cultural fit, because we're going to work with these people for 20 years, 30 years, 40 years, hopefully. And then we need to make sure that we are aligned in how we look upon the world. And we are good at making profitable companies even more profitable. We are not sort of the turnaround candidates. We are more good at making sound companies even sounder and even better. So that's sort of where we are.

And then you might wonder how much you are going to pay for this? So for us, we tend to look at EBITDA multiples, meaning operating profitable multiples. And it means that these companies don't have that much assets. So EBITDA could be EBITDA or EBIT or whatever, it's operating profit. And we tend to have a discussion on that. We do like stand-alone valuation. It means that we identify synergies, but we try not to pay for it, because that should be our benefit.

And if you look at what we are paying? Historically, we have paid somewhere between 4x EBITDA multiple for the cash flow being generated in these companies. 7x is sort of average. That means that when do we pay more? Higher margins, more IP, higher growth, then we tend to pay up to 10x. But so far, we haven't paid more than 10x. It could have been that sort of the base case was a little bit less, so it ended up being 12x the next year. But then we had to work another year to make it come back to 10x. But on the basis, never more than 10x. That means that sometimes we have paid 4x, but then it's more about acquiring a customer base that could be integrated into the business. And we do use earn-outs. That's usually to bridge valuation gaps. Of course, it has the benefits that the entrepreneurs is keen to stay on a couple of more years and have some more incentives as well.

So that means that we have been able to compound return over time. And the very important part of this is to make sure that we can attract entrepreneurs, because these are the guys that we want to acquire, we want to take part in. Looking at the 90 acquisitions that we have done, I think 4 or 5 of them has been through an intermediary or broker or corporate finance firm. The rest is bilateral, meaning that they know that we are active in the niches that I talked about, and they see the possibility and they see us as a good acquirer, or we go out to them and ask them why shouldn't you be part of us.

So that means that all the 20 different CEOs in the group, their management team, the group executive team and even the Board of Directors, everybody is constantly looking for new acquisition candidates, and we do spend a lot of time with them trying to make sure that they want to be part of Addnode Group. So that means that we look at hundreds of different companies every year, and we have that discussion with them. So it's a little bit like you imagine FBI 10 most wanted in 3 divisions. That's sort of how we operate.

But the difference is that those 10 we fill up every month and then some goes out and then it comes back. So it's a constant sort of dating, evolving hand in hand. So that means that we might be a little bit lumpy over time with doing acquisitions, because we need to be ready when the different entrepreneurs are ready to sell their companies. I should say that we are not opportunistic in what we want to buy, but we need to be a little bit opportunistic when we can buy. So that means that usually, we end up with 5 to 10 acquisitions every year. It could be a couple of quarters where we are not doing any acquisition. It doesn't mean that we are not working on acquisitions, because remember, we are buying from entrepreneurs who want to be part of Addnode Group.

Having said that, I would like to introduce you to 2 of our entrepreneurs who are part of Addnode Group, and what are they thinking about and their experience being part of Addnode Group. We have Simonette Rahmberg, who's CEO and Founder of Canella, working in the pharma industry. And then you have Kevin Schlack, the founder of Team D3, and he is now the CEO of Symetri US. So let's listen to them.

[Presentation]

So thank you, Simo and Kevin, for sharing that. I'd just like to end up with a summary. And I think one of the questions you're probably asking yourself, why invest in Addnode Group? So let me help you with that.

I think there are 3 things to consider. We are offering digital solutions. That's important. We have a proven 2x strategy. We're able to double our business every fifth year, and that is giving a consistent return on capital employed. And just to give you -- okay, why is that important? Why do I think it makes sense to that, just to sum it up.

We are providing mission-critical software, have high customer retention and switching costs. We can see that it's a growing end user market as well in the software that we provide. And if you look at the strategy, we have a proven business model with recurring revenue. We have shown that we can grow both organically and through acquisitions. And on that journey, we have also been able to improve the margins as well. And you're going to see more of that on Kristina's presentation later.

And look at sort of the risk, there is also risk side with the capital as well. I do believe that we have a balanced and disciplined risk profile, get great support from the Board of Directors on that subject. You can also see that we have a diversification in the business, and we have operational resilience. We have never lost money. We have always made money irrespective of the different -- what's happening in the world. And we do have a focus on cash flow, and Kristina is going to talk more about it later. Capital allocation is very important for us. I told you about the 3 ways that we spend capital, investing in our own IP software and the people, acquisition and distribution to our shareholders. And I think we do have a solid balance sheet, as Kristina is going to show you later as well.

So with that, I'm going to end my part of the presentation. I'm going to be back later today, but I would like to hand over to Jens Kollserud for Symetri and Design Management. Go ahead, Jens.

Thank you, Mr. Andersson, and hi, everyone. I'm Jens, the CEO for Symetri, as Johan said. I've had a pleasure to be part of this company group since 2009, and the absolute honor to be the CEO since 2016. My focus personally is and has always been to build high-performing teams with a very, very high customer value creation focus. That's been to everything we have been trying to do over all these years. And I hope I can share some information about how we have come to the place where we are today based on that strong focus on building teams and always being super keen on differentiation.

So who are we in this division? We are a group of people who get out of bed every morning to challenge people to work smarter for a better future. And so far, that has taken us to a position where we are doing this SEK 2.5 billion net sales. We're doing more than SEK 500 million in EBITDA, and that gives, you guys who can count in this room, you can count to more than 20% profit margin so far. We're also having these 2/3 recurring revenues, as Johan said, that we have also in the larger group. We have that as well.

And we have operations for now in 11 countries, and we operate underneath 3 different company brands, Symetri, Service Works Global and Tribia. Those are the 3 company brands. And the largest company in this division is Symetri, who is then a global partner to Autodesk, and we'll get back to that later. But what we do in this division is, maybe more importantly, we enable people to design, make and operate things smarter and more sustainably. And we do that through partnering with the right third-party technology providers, who creates value for these companies, who have open API, so that we can build our own IP to fill the gaps that our customers and we see in the market space. And then we ensure we have the right expertise to have the right type of advisory and delivery services with only one purpose. And that one purpose is to realize the outcomes and the promises of technology for our customers. Those are the types of services that we have.

And the way we think about this is that we build up our expertise. So we need industrial domain expertise for the clients that we're trying to serve, and we need a technological expertise, both of them. If we have both of them, we are pretty sure we can build leading-edge technology and services value propositions. And if we do that well, we can enable our customers to work smarter. And if we do that and only if we do that, we earn the right to be a trusted partner to our customers over a long period of time. And that goes back to the long-term commitment that Johan said, we have that with every single client. If we then split our net sales for now in this division, it's 21% is own IP sales, 34% is services and the remaining 45% is partner software. That's where we are here and now, or at least last year.

Okay. So let's talk about the most significant and long-term third-party partnership that we have in this division, it's with a company called Autodesk. Autodesk has been the platform for Symetri to grow since we were founded in 1989 in the land far away in a forest in Borlänge, Sweden. And from that journey, we have grown together with this partnership.

And who is Autodesk? For those of you who don't know them, it's an American software company with $6 billion revenues and net sales. They have 200 million users globally. They have more than 100 different type of software products, and they deliver these software products to 3 industries. Architecture, engineering and construction is one of them. We call that AEC. Product design and manufacturing is the second one. And the third one is media and entertainment. And for us, we are concentrating our partnerships primarily on the first 2, basically the building and infrastructure industries and the manufacturing and process and plant industries. Sometimes we use, of course, the technology from the third division to craft solutions for our customers. But primarily, we are doing that for customers inside those other 2 market sectors.

And I know there are a few of you who might have had a few questions about the models and business models and partnering models over the years. Autodesk has changed business models and partnering models more than once over the last 10, 15 years. One huge change they did was in 2016, when they moved from a perpetual license model into the world of subscriptions. So in 2016, you could buy a piece of software, own that and pay a small piece of maintenance. And after that you bought into a subscription, so you bought into the ability to use the software for a specific period of time. We did that during 2016, that transition, and we've operated with that model ever since.

Now last year, in 2024, Autodesk announced another change, which they call the new buying experience. This change basically meant that the customers, who are used to get a quote from partners like Symetri and an invoice from partners like Symetri, now got a quote from Symetri still, but not the invoice, because the invoice goes directly to the customer from the software vendor. That means it's an agency-based model. That was the change.

And with that change, it's fair to say that Symetri still have our customer relationships, because remember that we are selling other third-party software, we are selling our own IP and we're selling our services. So these customers, they're getting an invoice from us still, but not for the whole solution, okay? So the changes in this model also meant that the price are now similar irrespective of which partner you choose out there in the marketplace. And for us, we strongly believe and have seen evidence of that many customers now prioritize those who have more to offer, those with more own IP, those with more services, and those who also might have other types of technologies to bring to bear.

So we feel that our competitive advantage and ability to acquire customers has strengthened through this change so far. It also opens up further market consolidation, because not every single partner out there in the world have had the financial power or create the capability to invest in own IP, and we have done that for more than 20 years. So we feel we have a strong position going forward, and we feel we are pretty attractive for many other Autodesk partners who might not have that kind of portfolio of offerings to bring to customers. Finally, of course, also this transaction model changed that the credit risk for the Autodesk software piece moved from the partner directly to the vendor, in this case, Autodesk, because they send the invoice to the customer for these types of software.

That's all I want to say about the partnering models. I'm sure there will be something in the Q&A, and I look forward to the opportunity to answer more questions. But before we go there, let's talk a bit about our customers and what we bring to the customers. As I said, the way we look at the sectors and the industries that we serve with leading-edge technology and services, we see that we serve the building industry, the infrastructure industry, the manufacturing industry, and the process and plant industry, but those are the 4 segments that we serve. For each and every one of these, we have our own leading-edge technology and services specifically tailored to fit the purpose of these 4 sectors.

But what we wanted to do now was to zoom into one of the product lines that we have that brings value for companies in the building and infrastructure industry. Those 2 industries are generating 70% approximately of the net sales that we do in this division, meaning the other 2 are the remaining 30%. And this particular software that we wanted to zoom in on is a brand from Symetri, which has the purpose to enhance the Autodesk technology platform. It's called Naviate and it's for the building and infrastructure industry, and it helps them to work smarter, better, and faster. So let's have a look at that.

[Presentation]

So that, I hope, gave you some insights to what Naviate is and what Naviate does. And for those of you who are in this room and curious for more, you can go out in the exhibition hall and learn much more about this later. But now for all of you, digitally and in the room, I would like to share some more examples of what we do for our customers, just to show you a little bit of the breadth of things we deliver to them, not just based on Naviate or any particular product line.

One example I wanted to talk to you about is we have lots of customers who are large engineering service providers out there in the world, who are clients to us, that they might be in the process industry, in the manufacturing industry or in the building and infra industries. But they have one thing in common. They have a lot of engineers and designers out there. And they all want to reduce the downtime, of course, for all those engineers and improve the standardization and quality of how they're going to get things done. And one thing they want to do is to deploy software, upgrades, new versions, new pieces of software into their huge engineering communities.

In this example of AFRY, they have 19,000 engineers, employees in the organization. And we are building out the infrastructure to configure, package, deploy standardized solutions out there. And this particular implementation that we talked about, we were saving more than 15,000 hours for that organization in reduced engineering downtime by using technologies to make this so much faster, more efficient and with greater quality. So that's just one example of what we do. And that's just giving them access to the tools.

Other things we do, and as you've read about in the newspapers and maybe even experienced, is that most companies, they want to digitize to be able to connect the data, to be able to drive automation and insights with capabilities from AI and other type of technologies. One example that we have here from our clients is the Gillette Stadium in the U.S., which is the home for New England Patriots, for those of you who are NFL fans, if there's anyone here in Sweden, maybe 1 or 2. Either way, they have a pretty cool stadium called Gillette Stadium. And they partnered with us because we were one of very, very few globally who could do both CAD, BIM, GIS and figuring out ways of how do we digitize things, how do we bring the physical reality into a digital world. And once we have done that, how do we connect all this data to create a digital twin from where we can drive automation and insights to sell more things to the people who come to the stadium, to manage construction projects and operations in a more efficient way. So creating digital twins is one thing that drives digitization, connected data, automation and insights.

Another example is a company called Bernheimer Architecture, where we helped with life cycle analytics tools, embed that in a workflow and the outcome is that they can now do common wall elements with 50% less carbon footprint than they did before. And this is applying tools and methods for them to make smarter, better choices and more informed choices. And they are now winning more and more business based on their ability to kind of drive the sustainability actions going forward. So those are 3 companies we're very proud to partner with, 3 out of the 25,000 that we have by now.

So over the years, we have, in this division, grown from being a Swedish company to becoming a Nordic company, and that was a huge milestone that we achieved in 2009. Super happy about that. From there, we said now we need to expand our value proposition further, meaning we need to build more own IP. We need to expand the capabilities and services we can provide to increase our differentiation. With that as a strategy, we acquired the companies, Tribia and Service Works Global to expand the value proposition. And we also started to build product lines like Naviate that you just heard about.

So that was the mission we went on in 2009 in order for us to be able to grow geographically. And with that, we also moved into the U.K. and Ireland. Through the acquisition of Service Works Global, we got access to the Canadian market and Australian market in addition. But the majority of the business was still done in the U.K. and Ireland. As we went into that, we compounded a few partners into one Symetri in the U.K. That took us a couple of years, but we did it.

And the team there did it so well that we started to think about what's really stopping us to be the global #1. Is that even possible? And if so, how on earth could we take the next step towards that goal? With that said, we concluded that the natural next step was to enter the big U.S. market. So we did that on the 1st of March 2022 by the acquisition of a large company, Autodesk partner, who are delivering value to the building and infrastructure industries called Microdesk.

So we entered the U.S. market then, and then we continued to expand our expertise with Kevin Schlack, as you heard speaking earlier. And then we acquired a couple of own IP companies to strengthen our value proposition, who came into the Naviate portfolio of products. And once we had done that and started to gain market shares in the U.S., we gained the confidence enough to move forward to the next territory. That's when we entered the Latin America market with the acquisition of FF Solutions in Brazil this summer. So this journey has taken us to a position where we now have operations in 4 continents in Design Management, Europe, North America, Latin America and Australia. And we see great opportunities for continued growth.

And the question is, what has this led to then? Personally, I am incredibly proud of the team that we have and what we have done for all our customers over all these years. And what you can see, it has also enabled us to drive consistent growth over these 10 years. We have what you guys call, I think, a compounded annual growth rate of 26%. And we've also managed to double the margins. And how do you double the margins in this world of business? Of course, the strong focus on own IP has clearly helped us to differentiate, to drive value creation, to drive growth. But of course, being more operationally efficient is also part of that game. So the large move that you can see here in this graph from 2021 to 2022 marked the entry of the U.S. market with a positive growth rate.

Then you need to know that the customer in our world can choose to buy a 1-year subscription or they can choose to buy a 3-year subscription of their Autodesk contracts. That's their choice, 1 or 3. That means that if a customer buys a 3-year contract for the specific assets with annual payments today, we would recognize that whole revenue at the first transaction for that whole 3-year contract. That means that in the following 2 years, we do not recognize any net sales from that particular contract. And this, of course, can lead to some annual seasonalities where years might be higher or lower on multiyear or 3-year contract sales or the renewal base comes and goes a bit with annual seasonalities.

2023, for us, as you can see on this image, was a year where we had a lower portion of 3-year contract renewals, but also we saw a weaker market that year in the U.S., especially. And that led to the drop in 2023. But as you also can see, in '24 and '25, we're back on that growth trajectory as we were on to earlier. And going forward from here towards the future, we expect low-digit organic growth for Symetri in 2026 due to this renewal cycle that I was trying to explain of multiyear subscriptions or the 3-year subscription contracts. But for the coming years of 2027 and 2028, we expect organic net sales growth to be supported by this renewal cycle of 3-year contracts.

Four ways to summarize the success factors that we felt we have done to achieve this 26% of CAGR. Number one is that we feel we have built a very, very strong culture brand that attracts the right people. We are meeting lots of companies out there and not everyone is a good fit for us. We are defining the Symetri way very, very clearly, what we mean by our values, attitudes, belief systems, what it really means being an ideal team player and why that's crucial for our future success. And we know that, that has attracted a lot of great people to our organization that we're really proud of. And it also has had the impact that some people might not want to come into this organization, but we made that very clear. So it's an option. And everyone knows what they're stepping into. That's important.

We also know that if we go into a new market or market sector, it's crucial for us to know this is the way we're going to get to #1 in that particular market sector, because that's when we see that the margins can grow and we can afford to invest to make sure the differentiation grows over time. So we only go into markets, geographies and/or sectors where we have a strong idea of what are the steps that are going to take us to the #1 position. That might take us 1 year, it could take us 3 or 4 years, but no longer than 5.

Own IP offerings, as I talked a lot about. It does increase the differentiation. It makes us more attractive, not just to customers, of course, to our clients, because that's important to drive value for our clients, but it also drives the right people to us who want to have a bigger impact. If you deliver a service to one client and can't package that and provide that to someone else, your impact is probably less. But in this culture, you have an opportunity to take your expertise and have a bigger impact with that expertise, and that attracts people to us. It attracts acquisition candidates, future employees, and it attracts partners who want to work with us.

And we, as a leadership team, I have learned that we have to have the courage to do things slightly bigger from the beginning, to reduce the time frames than we did in the past, where we maybe took 3 years to figure out if something is going to work or not. Now we do bigger investments to get the outcome faster, even if the outcome is that the idea didn't work.

And my final note is about the future. So we feel we have proven to ourselves and to 25,000 customers so far that we have built a global scalable portfolio that differentiates us from our competitors in the marketplace. We have a strong team, a great team, with a lot of industrial expertise. We have a large network that we built over all these years, lots of companies and people that we collectively know in our industry. And we do have practiced M&A integrations, processes, acquisitions over the years. So going forward, we are seeing both organic opportunities to grow customer acquisition in Europe and Americas, and also further consolidation opportunities in our industry.

And we also really, really think that this is also a good time to continue to expand the value proposition, and we're looking for companies that are having IP to offer to the customers that we already serve. So those are kind of the 2 main opportunities that we're looking for from an M&A agenda. And of course, we have proven that we can drive profitable growth in the history, and we will continue to do that in the future.

Thank you so much for your attention. And now I'm going to hand over to my dear friend and colleague, Mr. Magnus Falkman, who heads up the PLM division. Magnus?

Thank you, Jens. Great job.

Thanks.

All right. Good afternoon, everyone. Thank you for the time. I know I'm between you and coffee break. So I'll do what I can to make this as engaging as possible. Also, great to have you all online. Thank you for joining. I'm Magnus Falkman. I'm the division leader for Addnode PLM. I'm also the CEO of TECHNIA. Going forward, I will refer to us as TECHNIA, because we are basically running a single brand operation. My ambition is, for the next 25 minutes, to give you an overview of our financial profile, the strategic partnership we have with Dassault Systemes, the industries we serve, how we bring value to those clients we have around the world, and also what is the transformation we are currently undergoing and what will we do going forward.

But first, a few words about myself. So I've spent more than 20 years in TECHNIA across multiple roles and different geographies. I've been fortunate to be part of this journey. And for the last roughly 5 years, I've been leading this company. My focus is sustainable growth. It's also operational excellence. And for me, this means every day, I need to constantly challenge my team and the customers to drive the necessary transformations.

Now let me give you an overview of TECHNIA. In '24, we had roughly SEK 1.8 billion in net sales and EBITA of SEK 170 million. We are roughly 750 employees worldwide with roughly plus 200 out of this team based in India. We have a recurring revenue of a little bit less than 70%. And we are operational in a little bit more than 15 countries. We do this through 4 divisions, as we call them. We are structured with full P&L responsibilities. So it's the Nordic, the Benelux, it's what we call EuroCentral, Germany, Austria, Switzerland, Poland, Slovak, U.K. and North America, and finally, for us, rest of the world and global partnerships where we basically are the resellers. It's also worth mentioning that we support these 4 divisions by the strong team out of India as well as our global team developing our own IP.

So let's have a look at the pillars of our business and how we interact with our customers. Our why statement is helping our customers develop smarter products faster. For us, this means that more efficient ways of developing future products, it's also more sustainable ways and creating more sustainable products.

Today, we help roughly 6,000 customers around the world innovate, develop and manufacture with greater speed, better quality and compliance to local and global regulations. We do this through 3 pillars. So 60% of our revenue is based on Dassault Systemes offers. For us, this means design offers, namely CATIA and SOLIDWORKS, simulation-related offers with SIMULIA and governance offers in the form of 3DEXPERIENCE. We are one of the largest partners to Dassault in the world.

30% of our business is services. What is it that we do? We are purely focusing on services around the Dassault Systemes offer, which makes us focused on this topic. We deliver training, business process reengineering, integration, design support as well as data loading, et cetera. Services is critical for us. It's also how we create more value to our customers, making sure that what we deliver gets used and providing value to the customer over the lifetime.

The third pillar of what we do is own software. So we have a portfolio of own IP that accelerates the deployment of the Dassault software. It goes from products with standardized integrations to UI and user adoption softwares and finally, different type of compliance softwares for 3D models primarily. So for us, TECHNIA software drives stickiness. It also increases our recurring revenue and it improves our margin mix basically. What's the effect of this? Well, it's a high recurring revenue base with long-time customer relationships.

Let me show you a little bit more about what are our industries and what type of offers and problems is it that we help these industries with. So if we start from the left, transportation and mobility. For us, this is automotive, rail, heavy vehicles, but also racing. So we are serving many of the teams on the F1 Grid as well as race teams in the U.S. in NASCAR.

What has been the trend here? I think, for us, in automotive, we have seen some global headwinds, I would say. Our both OEMs and suppliers are challenged from electrification, software design vehicles, but also, of course, supply chains and tariffs. I think for us, we see a huge potential and a need for especially the European industry to continue to digitalize. However, looking forward, I think the other industries will grow more for us and become more important than automotive.

If we look at industrial equipment, the second core industry for us, it's been an important industry for us all the time. Here, we see a continued need. And here, we help our customers develop more efficient with better quality. Aerospace and defense has been a core industry for us that has developed into more of a growth industry based on natural development over the last couple of years. We are helping streamlining operations, improving efficiency, taking new defense systems to the market for our customers. We see this accelerated demand in this industry in all our regions basically.

Life Science has been a growth industry for us for several years as well. It's typically driven by complexity and regulations and also a need to improve efficiency within this industry, we will continue to grow with this potential. Finally, infrastructure, energy and materials. For us, we have seen some subsegments going down and subsegments in this industry going up. I think what's very exciting now is, for example, all the initiatives around new nuclear, where we are helping customers in most of our regions actually expanding here, benefiting from the technology we deliver.

All right. To exemplify this a little bit, I'd like to show you a quick video.

[Presentation]

All right. So just to summarize what was that. That was a quick overview of how an implementation can look as a customer, where you see a platform for collaboration. You see 3D geometry being developed. You see a product being configured to a customer need. You also see simulation of how this will behave. And then finally, simulation of the actual manufacturing of this product, powered by some of the TECHNIA components, and there will be opportunities to get more details if you're curious at the stand in the break.

Now I want to exemplify this by 3 customer cases from different regions and also different industries and different sizes. If we start with Sora, it's a U.K.-based start-up building electrical vertical takeoff and landing personal transportation plane, you could say. They came to us and they needed to rapidly design and verify designs for this new product. We helped them deploy 3DEXPERIENCE cloud with design tools and simulation tools plus with our processes. And by this, they were able to drastically reduce the development cycle and improve the traceability.

The second example here is Austrian-based industrial scale-up called Automation Express. They came to us with a need to have a platform for design and also interacting with their customers, designing basically factories. And we help them with the design PLM-based platform, where they now design, verify design and also plan their manufacturing in collaboration with their customers, leading to better configuration control and seamless handover to manufacturing.

The third case here is more of an enterprise customer, a long-term customer of us, Kongsberg Defence & Aerospace. where we are currently working with them to design and develop the processes to accelerate speed of creation of new offers to meet the demands from the customer base, which is really high, which is super exciting. I think what's common for these 3 cases is that it's similar technology, even if it's adapted to the different industries, helping these customers to develop with speed and quality and adapt the platforms for the future. I think we are really inspired by demanding customers that want to help their clients and we want to help our clients achieve breakthroughs.

So let's then look a little bit at our prime partnership with Dassault System. So Dassault Systemes is the leading global leader in 3D design, engineering, simulation and product life cycle management. I've mentioned it, they have flagship brands such as CATIA, SOLIDWORKS, SIMULIA, 3DEXPERIENCE, but also DELMIA. Today, we carry the majority of the big brands they have, and we focus on these 5 industries even if Dassault Systemes has a broader focus of up to 12 industries.

I think their core value position is connecting real and virtual. And this is really interesting, and there is a great potential here. I think they have a great technology where the different disciplines are connected in one platform. Now with adding AI capabilities in this platform, the potential to accelerate our customers' journey and improve the speed to market is huge, and I'm very excited about this.

Our partnership with Dassault has lasted for more than 30 years. We are a go-to-market partner. We are an implementation partner. We are an education partner, and we are also an R&D partner. So what is the role in our transformation and our customers' transformation together with Dassault Systemes. So we have a great potential to guide our customers to benefit from all the new technology that is there, and there will be even more AI features coming, both in our products and in Dassault products.

Then, okay, what brought us to this situation and how did this journey for TECHNIA start? And what was it like? What happened? I think this story starts in 1994. There's 2 guys in this room that actually was part of the inception of that story. So we have the Chairman back there, Staffan, and also one member of the Board, Jonas, founded a company called TECHNIA in Sweden. During this early phase, TECHNIA expanded in the Nordics. Some of our own first IP was created and the relationship with MatrixOne, that later became Dassault Systemes, was formed.

Then in 2004, there was a strategic and transformative shift where TECHNIA became part of Addnode Group. It was a catalyst for growth and expansion outside Nordics. In the period that followed, TECHNIA entered the U.S., created our operations in India. We were really early there, creating the foundation for delivering project at scale with a muscle with our great team in India. After that, a phase of expansion in Europe followed where we had 2 transformational acquisitions. First, Transcat, which was basically almost 3x the size of TECHNIA at that time in 2015, putting us in the position of being the biggest partner also in Germany, followed in 2017 by the acquisition of Intrinsys, putting us in the #1 position in the U.K.

From basically 2019 and forward, we have consolidated a number of expert companies in the area of model-based systems engineering and simulation, broadening our expertise and making us well positioned to be able to accelerate on the new combined offer from Dassault. So today, we are a global actor with really deep knowledge in core domains and with a global delivery capacity.

What has this meant when it comes to numbers? So our growth rate has been roughly 10% CAGR, Jens. However, the last 2 years, we have seen a downward trend. This is partly driven by some of the headwinds in the industry, being very exposed to automotive. We have acted very diligently on this. In Q1, we communicated a transformation program, reducing costs and taking out some colleagues, creating a more streamlined organization.

Following that, we are now working on 3 topics. So one is to streamline our offer, basically scaling down some parts in our offers that don't strategically work with what we do and don't contribute to the global ambition of TECHNIA. We are continuously improving the efficiency of the organization. So it's something we will continue to do. And thirdly, we are focusing on reducing our OpEx, all in order to strengthen our margins.

So then let's have a look at the success factors taking us to where we are. The first one, market leadership. I shared this with Jens actually. So our learning and ambition is very clear. When we are #1 in the market, it's really a favorable position. We are that in many parts in our organization, and we have plans for the areas where we are not. It also guides us when it comes to where are we going next. So if we don't see a path to leadership in a market, we will not enter that market.

The second success factor is culture is really a competitive advantage. We are a people company. It's our employees that meet our customer on a daily basis. We have to make sure that we have the right attitude and the right spirit in all parts of our organization. This is, of course, an ongoing task when it comes to our own existing teams. It's also really a key topic when we look at M&A situations.

The third success factor is own IP. For us, own IP is more than technology. It's our identity. It provides opportunities for employees. It generates a uniqueness to us, and it also creates a stickiness in our customer situations. So this is something we will, of course, continue focusing on. My third success factor is simplicity in global execution. This is something we have been working on, but it's also something we honestly are working on. So this is a never-ending story, but I have a lot of potential to continue to drive simplicity in how we operate.

Then let's have a look at the priorities going forward. So I touched on that. For me, key priority is to drive efficiency and profitability in the organization. We have taken action. We are continuing to do this, making sure that we can run with a higher profitability than today, and I'm convinced we can. Second thing is simplifying and strengthening our offer. So harmonize our global offer. We are selling more or less the same things in all markets in order to be more scalable and efficient. The third thing is to leverage our leadership position with Dassault. So we have a really strong position. My focus is to continue to do that, of course, but also expand further our services and own IP into our customer base. And then we are doing all of this to be ready to be agile and scalable to take potential next step in our journey.

I think by that, you all deserve a bit of a coffee break. And so what will happen is that there is an exhibition outside. There will be coffee. After the break, where I really want you to be back here at 3:00 latest, preferably a couple of minutes before, so that's half an hour break, Mr. Wikholm will take you through what's the course and ins and outs of the Process division.

[Break]

Welcome back. I hope you all had a nice coffee break with some Swedish Fika and perhaps had a chance to have a look at our software demos out there. And for you following us online, I hope at least you had a nice cup of coffee. So welcome back.

It's time for the final division, the Process Management, the grand final. Sometimes you save the most exciting and thrilling part for the end, right? But I don't think the words thrilling and exciting describes the process division that good. With our recurring revenue, long customer contracts and prepayment, I think that predictable is a better word. So I can't give you a thrilling grand final, but I hope to give you a predictable grand final.

My name is Andreas Wikholm, and I've been with Addnode Group for 10 years now. I've been running the Process Management division the whole time. I have 25 years' experience from the IT sector. I've been working mostly on the supplier side with public sector and the modernization and IT there. Before Addnode, I was quite a long time at the Nordic IT group and serial acquirer Visma. And ahead of that, well, in the beginning of my career a long time ago, I worked at the Nordic IT giant Tieto. I'm born up in Lulea, but I moved now to Stockholm a long time ago. So I lived in -- well, actually in leading for a long time, so I consider myself as a city boy. But enough about me, and let's talk about the division.

And let's start with some basic facts. Last year, we ended on net sales at SEK 1.3 million. I'm the little guy compared to those giants over there. We own the majority of the IP in our products, and that actually helps us to keep up the profit margin to, well, almost at 20% level. We have two main offering. One is JS-centric, more or less geographic IP and the other is around case management, and I will come back to that.

Almost all our customers are in the Scandinavian public sector. We do have a footprint in some private market segment as well, typically segments that reminds your public sector, insurance companies, pharmacies, electric utilities, we like rules and regulations. The majority of our employees are based in Sweden and Norway, but we do have additional software centers in Lithuania, Serbia and India.

As you can see, we work with multiple brands and companies within our division. I know it might look a little bit fragmented at first glance, but don't worry, this structure actually helps us to keep focus on the decentralized governance model that we have. This is small and midsized companies. And the best thing about the decentralized model, Johan said it, but I will say it again, I will probably repeat it one more before I leave the stage here.

The best business decisions are taken by those who knows the customers and employees best. And the brands you see up here, they are very well known among the customers. So we are careful when it comes to consolidations and mergers. But over the years, we have been able to establish lots of programs and initiatives where these companies actually cooperate. So they can -- well, they're not in Nirvana, but I would say that they can combine the strength of being a small and midsized business with the benefits of belonging to a big solid group. But how can they all perform so predictable and stably then?

Well, I think that the main answer to that question lies in the nature of the customer base and the smartness of our products. So let's start to take a look at the customer base. Public sector in Sweden and Norway. First of all, all Scandinavian countries have had high ambitions and budgets when it comes to IT modernization for a long time. This is a customer segment with money. It doesn't matter how the stock exchange develops. And selling and delivering to public sector is a special sport. It's like cricket.

The procurement processes are rigorous and complex. A single sales cycle can take years. So if you want in, you have to be very patient, and we have been here with our companies for 40 years. This is also a customer group that is very risk-avert. Fear of doing wrong or even doing something different is very high. You don't want to be that guy that bought an unknown system that didn't work, then you might end up in the local newspaper or on TV, color factor.

The contract lengths are normally 8 years, sometimes even longer. And altogether, this creates high entry barriers for newcomers and a quite small fish pond of suppliers. For instance, can you guess how many competitors we are up against in an average public procurement? Anyone? 10, 6, well, fairly good. I would say definitely less than 3. Said something about the customer group, right? But if we move on to the smartness of our products, well, the very best thing, our customers can't live without them. We deliver truly mission-critical solutions. You can't run a modern city today if you don't know where the pipes on the ground are and you need a system for that. And you need a building permit solution. Otherwise, my hometown leading it would be overflooded by installations that is totally crazy, buildings, castles, paddle tennis courts.

And more importantly, the customer, the city hall would be breaking the national law. Of course, there are other options that the customer could switch to. But even though there are other options, limited but other, the cost of switching only a standardized building permit solutions might be SEK 5 million to SEK 10 million just for a normal Swedish municipality, and that's quite a lot for them. And if you run a central government agency or perhaps and you want to switch your own case management solution, well, then you better have a thick wallet. And why is that? Well, the businesses and the cases at central government agency are very unique and special.

So even though we provide a platform for case management, you always have to tailor-made it. And that is actually why you see quite a lot of services in our division as well. But remember, as Johan said before, the services we provide are connected to software and the software that we provide. We don't sell the Java developers to the guy next door. This is services connected to our software. And more importantly, a lot of the software services, sorry, is actually a recurring nature. So customers commit to buy, well, for maintenance or development towers, a number of hours every year. So it is of a recurring nature.

If you look, for instance, at what IDA Infront is delivering to Swedish Environmental Protection Agency, Naturvårdsverket, a customer that we have been working with for 15 years. We provide our case management platform, IIPAX. And on top of that, we are building support for them to handle tens of thousand different environmental cases every year, covering permits, supervision, taxes, grants and all types of stuff. And you can imagine, if you work with a central government agency for 15 years doing that, that solution will be very hard to replace.

But more importantly, IDA Infront and IIPAX is helping Naturvårdsverket focus on the core business and spend less time on administration protecting Swedish environment and promoting sustainable development. If we then move from central government to local government, and we take a look at Sokigo that have a product called Gaida. Perhaps someone had a look at it outside, but this is a more standardized product designed to fit the needs of 290 Swedish municipalities. But instead of me talking further, let's have a look at a short video.

[Presentation]

Soon to be installed at all Swedish municipalities, at least I hope so. So if you leave the products and customers for a while and focus on what the Addnode Group can deliver to the entrepreneur and selling their companies to us. I'd like to see this as a smorgasbord a set of initiatives and programs that could help the companies becoming the supplier #1 and, of course, also an attractive workplace.

Johan already mentioned our innovation program. I think that is one way, of course, to fostering entrepreneurship within our group, lots of engagement from all our employees, but we also arrange annual leadership programs. And that is -- it sounds quite easy. But if you are a single stand-alone company with 100 or 200 employees, it's hard to do that every year. And we have a group-wide trainee program, executive trainee program that helps our companies attracting the very best top talents from top schools like the Royal Institute of Technology or Stockholm School of Economics.

Another highly appreciated initiative is the Addnode women, a strong network promoting skills development, collaboration and networking among women in tech. We arrange hackathons where our software developers from across the globe engage together with customers and solve almost impossible challenges.

On the security side, we have a comprehensive cybersecurity program, ensuring that our companies take the necessary actions to avoid leaks and hacks. Do you want to know exactly what we do? That's a secret, I can tell you. But perhaps the most appreciated of all is all the professional networks that we have in the group. Role-based professional networks is key. If you are a CTO today, you can discuss with other CTOs on how to use modern AI tools to speed up the R&D development. Or if you are a sales guy, you could collaborate to do cross-sales with your other colleagues in the group or if you work as an HR Director, perhaps you need to share some best practices with others on how to implement the tricky working from home policy.

Having those kind of role-based networks, I would say that it's really key for success in our fast-moving business climate that we have today. So how has the division developed over the years? Of course, you can take a look at it from many perspective. One way is to look at the acquisitions we made, most of them bolt-on acquisitions, strengthening our value proposition and customer offering. But we also made a couple of strategic partnerships along the road, like the one that we have with Esri today. Esri is the global frontrunner when it comes to GIS technology, quite similar to Autodesk and Dassault Systemes, but within the GIS community.

Today, we are the only one providing Esri technology to Swedish municipalities. That is a business setup we would like to, well, expand further, perhaps to other market segments or other customer segments.

We have also done a couple of mergers and consolidations, even though we are careful with that. The company, Sokigo that I mentioned before, it's actually built on 8 different companies. If you take a look at the development from a more financial perspective, it looks like this, quite solid development almost every year. The CAGR, 14%. I thought that was quite good, at least until this morning where we released or at least someone raised the bar a little bit. But well, if you haven't read the press release, you could see that as a teaser for Kristina's presentation later on. But I think it's a quite solid development.

And some of you might wonder what happened in 2020. You could see that our profit margin took a jump up. Part of it was due to two SaaS-driven acquisitions, Netpublicator and Intraphone, but the major part was actually a COVID effect. During COVID, the customers kept on buying our solutions, but at the same time, we managed to cut costs in travel and office space. Savings we'll be able to maintain even after the pandemic. Someone clever here or many people clever here might think, is it possible to take another jump in the future, perhaps with the help of AI. I think that's a good question for the Q&A later on. But if you reflect a bit on the key success factors that has helped us during this development over the years, also things that we should bear in mind walking further.

I would definitely highlight the decentralized governance model. Here it comes again. I'd love to repeat it. The best business decisions are taken by those who knows our customers and employees best. That's key in Addnode DNA. Big fish in a small egg, what's that all about? Well, it's about being supplier #1. If you are the supplier #1, if you are the thought leader within a product segment or market segment, you have a unique possibility to deliver value because the customers really listen to you and you have also the possibility to get paid in a good way definitely.

Our focus on public sector has also been core for our success. Yes, we work with other segments, as you heard, but understanding public sector and the customers so deeply as we do or have done -- learned to do over the years, that has enabled us to build the solutions they simply cannot live without.

Finally, culture and winning team. Well, this is the tricky thing that's sometimes hard to put words on, but I would say that we have managed to create a culture where you mix psychological safety with a healthy dose of competitiveness. And this mix has been crucial for us to create success and constantly take market share from competitors.

So what lies ahead of us? Well, we will definitely continue to grow in Sweden and Norway, both organically and through acquisitions. There's still a lot to do here. But we do see a compelling potential outside the Nordics as well. We know that our know-how and solutions are relevant for customers in U.S., in U.K., in Germany. Will we go with everything everywhere? No, of course, not. And if we go at a geographical expansion, we will, for sure, support that with acquisitions.

But let me put it this way. I would be very disappointed if we, 3 years from now, haven't put down the process management flag in a country outside the Nordics. Anything else that you should watch out for on the road ahead? Well, you heard about AI. AI is making everyone more efficient. It's probably wrote 90% of my speech. But perhaps the most affected ones in our organizations are the software developers. We are already accelerating our software development for the help of modern AI agents. But who's the winner of this? Better margin in my decisions, in my division? Yes, maybe. Johan hope for that. I hope for that and a couple of more guys in the room, hope for that.

But maybe it will only be the customer getting more for less money or maybe we could both be winners or maybe the competitive landscape will shift if some players are betting using AI than others. One thing is for sure, AI is here, that's obvious, but it will be crucial for success in the future. But I'm confident that we will handle this new spice with steady hands, just as we had handled other emerging trends the last 40 years, like the Internet, like the cell phone. And if you do that and continue to deliver mission-critical solutions to public sector, I'm 100% sure that we'll still be around 40 years from now, hopefully, a lot bigger.

So nothing dramatic, nothing thrilling in this final presentation, just solid and predictable business. Thank you for listening. And with those words, I would like to hand over -- well, this is the moment you all be waiting for, right? I will hand over to the Queen with the keys to our treasure chest. So please give a warm hand for our CFO, Kristina Mackintosh.

Thank you, Andreas, and thank you all for listening in, both the audience here in the room and also you the audience online. I'm going to take you through the financial targets that we just published this morning. I would just like to ask you who read the press release. That's 99%. That's great. So now you know what you have in front of you.

And I'm Kristina Elfström Mackintosh. I've been with Addnode Group for almost 2 years now, not as long as my colleagues, but I'm really committed as committed as they are in the future of Addnode Group. And historically, Addnode has presented three financial targets. And now we're going to add the new and fourth target. And I'm going to start by going through the one by one, and I'm going to start with the growth target and explain the reason for the new definition of the EBITA growth.

And Addnode has always been focusing on profitable growth. And this is also forming a basis for the change in the growth target. We were going for -- from net sales, 10% to target of 15% EBITA growth, focusing on profitability, efficiencies within the business. And I'm now going to take you through the 10 years performance in the past in these metrics, also providing a guidance for the future.

Over the past decade, Addnode has focused on profitable growth. And we have increased EBITA from around SEK 170 million in 2015, reaching over SEK 900 million in 2025, an impressive CAGR of 19%. And you heard my colleagues talking about how that is possible, how we are growing and recurring revenue is really an important part of that, growing the business, being predictable, profit being predictable and stable going forward.

Also our focus on our own products, new technology and services also form an important part in the growth journey. And as we know, acquisitions, really important to Addnode. And we, during this time, have acquired more than 40 strategic and bolt-on acquisitions that have added to the growth of -- in EBITA.

And you can see the temporary drop in 2023. I think we have gone through that, but I'm just going to reiterate what Jens and my colleagues have said before, that's part when we had a temporary drop in customer demand, mainly in the construction industry. We also saw longer sales cycles in 2023 and also the swift to lesser 3-year contracts in 2023, together with the restructuring measure in one of our divisions.

And Addnode will continue to drive EBITA growth. And we will do that with a balanced mix of organic growth as well as strategic acquisitions. And we remain confident and excited about the road ahead to deliver EBITA growth of 15%.

By that, I'm going to take you through the next financial target, which is the margin target. And Addnode's EBITA margin has shown an upward trend over the past decade. And by -- it's been driven by organic efficiencies, also releasing new and advanced technology owned products and services and also expanding margins and making good and profitable acquisitions. Additionally, also the shift in the new transaction model has supported a higher margin level, aligning well with our strategic focus on profitability. And we have adjusted our margin target from 10% to 17% EBITA margin.

And as Johan informed before that the margin has been adjusted in the past to make the years before 2024, like the new transaction model. So we have adjusted the figures. And also for your benefit, we have posted a pro forma that you can have a look in -- at our website.

And I will now share the historical performance of the EBITA margin with you. And since 2015, we have steadily improved our EBITA margin from around 8% to 9% to now 15% to 16% in the last years, which has been a great improvement over time. Gross margin is strong and remains strong, which is a good foundation for the EBITA margin. And as you heard from my colleagues, expansion and development of our own technology products and services has also found a key role in driving the margins up.

And Addnode has even though challenges in the past like the pandemic, the increase in interest rates, the geopolitical unrest and financial instability, we have made progress, which is quite impressive. And we had a lot of my colleagues talking about the decentralized organization where decisions are made closer to the customers and the markets that has really proven very successful, actions can be made quickly driving the margins up.

And we are continuing making acquisitions with high margin, bringing us to new geographies, new markets and new customers. And that we are continuing to making acquisitions in that respect. And we are combining the multiple geographies and customer markets and segments bringing the concentration risks down, but also allowing for opportunities growing the business in new areas.

With this development, we are excited and confident to continue to drive the EBITA margin and improve the margin to 17%. With these two targets in mind, I'm going to take you now moving over to the dividend. And the third and financial targets is the dividend. And Addnode's capital allocation strategy is focused on long-term value creation and disciplined financial management and our capital allocation approach includes three components.

Firstly, investing in our core operations, focusing on high-return projects to bring the organization -- to drive organic growth. Secondly, strengthening our positions with acquisitions that would strengthen our market position, our customer capabilities, improving our long-term growth. And thirdly, the dividend to our shareholders. And the capital approach remain valid, and we are maintaining our dividend policy.

Underscoring our commitment to consistent and predictable shareholders' returns. And strong cash generation is an important part, and we are driving cash flows and cash generation hard in Addnode. And I will take you through the cash generation for the past 10 years. Our business model is characterized by asset-light model with moderate working capital and R&D requirements.

Strong cash generation supported by upfront payments and the growth that you're seeing behind me shows the cash conversion for the past 10 years. And the cash conversion is calculated as the free cash flow in relation to EBITA. And you can see the pink trend line, which show an average cash conversion of 17%, you can also see in 2023, something happened. And I think Jens explained that quite well that before that, when we sold the 3-year contract, we would get the revenue for the 3 years at the time we sold the contract but we were also getting payments for only 3 years. That changed in 2023.

Now when we sell the 3-year contract, we will still get the revenue for the full 3 years, but we will only get 1/3 of the payment upfront. So there, we have a temporary working capital drag that you can see in this graph. And I would just like to point that we're not losing any money, it's just this shift that makes that we have a temporary working capital drag. And we're working hard with a lot of actions in bringing this level up, and we know that it's going to come up because that's the business that we're working in.

And cash flow is important to our dividend allocation and dividend payout. And I'm now going to go through the dividend for the past 10 years and also the EPS development. We can see a solid EPS growth over the last decade. From 2015 to 2024, EPS has grown by around 280%, and approximately SEK 960 million has been distributed to our shareholders. And we are confident in our long-term prospects and continue with our current dividend policy 30% to 50% of our net profit being distributed to our shareholders.

An Addnode benefit from long-term shareholders who remain strongly committed and provide consistent support for our strategic initiatives, our operational execution and long-term success.

And I will now comment on our fourth and new financial targets, which is the net debt to EBITDA. We never had a target in this area, but we get a lot of inquiries about our leverage and our leverage position and our leverage targets now Addnode is introducing that for the first time. And with this new target, we are reinforcing our commitment to maintaining a strong balance sheet and strong capital structure that supports both organic and strategic acquisition. And the new target is a net debt to equity of no more than 2.5x.

And these metrics provides transparency into our leverage position. It also ensures that we are disciplined when it comes to balancing growth initiatives with financial stability.

And I will now go through the performance of these leverage metrics for the past 10 years. Addnode is operating with a resilient balance sheet with a low debt and leverage level. And you can see the leverage has been around 1.1x to 1.3x over the past 3 years. You can also note in this graph that in 2017, we were made a lot of acquisitions, the leverage came up to 2.0x. Addnode then in 2018 made a new share issue and the leverage was brought down.

And we are planning to maintain a controlled net debt position going forward, but we will also balance the level with strategic opportunities, which may increase the leverage from the current levels. We are also evaluating our performance in relation to capital employed, although we're not proposing a new financial targets. However, I'm going to take you through the last 10 years' performance of the return on capital employed.

Addnode is a true compounder with consistent and increasing return on capital employed. In 2015, return on capital employed amounted to 13.5%, and has been reaching 18% to 19% over the past 3 to 4 years, except in 2023, and we -- when the profit drops that we talked about just recently. And we are currently focusing on improving return on capital employed by increasing our operating margin and profitability. We're also operating -- optimizing our OpEx and working capital, trying to reduce tied-up capital. We also manage our CapEx and reinvest profits to high-return projects.

And also, as we heard from time to time, we are restructuring our operations that are not performing according to plan. And this has really been successful and based on a proven track record.

And I will now finalize our financial targets. And I believe that repetition is the mother of knowledge, and I'm going to repeat the targets. We are now leaving our old targets. And we are working with our new targets, 15% EBITA growth, 17%, EBITA margin, 30% to 50% dividend and a net debt to EBITDA of no more than 2.5x. And when you combine Addnode's track record with a clear path going forward, it shows that how consistent we have delivered margins and strong returns and how confident we are in our financial strength and our ability to reach these new targets.

Thank you very much for listening, and I will now hand over to Johan.

Thank you. Kristina.

Thank you. Before we move on to Q&A, I just want to take the opportunity to say a few words. And firstly, thank the fantastic management team who has been able to present today. Thank you. And I think it's so much easier if you have a great management team because you know we buy yourself, you're going to do everything by yourself, nothing gets done.

So first of all, I'm very proud to have been able to introduce the management team to all of you today and also introduce the strategy of the things that we would like to do as moving forward. So I want to take the opportunity just to take 3 minutes just to summarize. And going back, you have already seen this today. Why invest in Addnode Group? We are offering digital solutions. We have a proven strategy that has shown that we can give the return, and we hope that's going to happen going forward as well.

Mission-critical software, that's what we provide for our customers. We do believe that high customer retention and switching costs, that gives us predictability in what we are doing. And we can see that we have growing end-user markets. We have a proven business model, recurring revenue and high cash flow, even though we have a temporary drag on the cash flow. We do like the combination of organic growth and M&A, and we do try to work consistently improving the margins 1% by year. That's a good way of doing things.

And we do like to have a balanced and disciplined way of looking at our financials, like Kristina told you. We do like the diversification and the resilience in the business. And we're going to continue to have a focus on strong cash flow, a resilient balance sheet and be very effective on our capital allocation as we move forward.

So what can I promise you and what can you expect? More of the same and a little bit more. That's probably what we can hopefully do. That means that we're going to continue to do bolt-on acquisitions. We're going to do what we call bigger acquisitions, some of them that we have discussed today. We are not going to make bets. We're not that kind of company. But as we grow, we can handle bigger and bigger acquisitions. I think that's the way to look at it.

We're probably going to enter some new geographies. We have discussed that a little bit today. We're active in 20 countries today on 5 continents, probably some of the neighboring countries to where we are today. That's probably what we expect. We're going to look at new niches with market growth, but they're probably going to be quite close to where we are. Because remember, we do believe that we need to be able to create value in what we're doing. And in order to do that, we need to support the companies and our customers. So that means that we'll probably be adding nodes to the existing notes. That's probably what to expect from us.

We're going to continue to invest in own IP, as we said, both sort of pure IP offering, but also the IP that gives value to the platforms that we represent, because both are important, both to create the higher margins, but it's also because it's a glue that connects people, and it also makes us more attractive to the entrepreneurs that we want to bring into our organization. Of course, we're going to work with price increases. At least, I know that my Board of Directors are going to ask me about it. Johan, how hard about the price increases? Are we doing enough? Could we do more? It's a constant work. And we need to balance that with our customers as well.

We're going to work on internal efficiency. There is always more to do, and we had had some presentation discussion around that today. It's a constant work. And hopefully, these things are going to bring us though an EBITA growth of 15%. And remember, 15% year-over-year, that means that in 5 years, we're going to double our business. That's what the target says. And on that journey, we probably -- we need to increase our margins as well. As Kristina said, we are trailing around 15%. We're saying at least we're going to go on that journey up to 17% to make that happen. So that's what we have been had.

So with that, I want to open up for Q&A and questions. And with that, we're going to do like this. You hear the audience, you're going to be able to ask questions directly here. We're going to hand out mics. And when you get the mic, please put it close to your -- to you, so will hear you. And for those of you who are listening, you're hopefully have been already putting out questions in the webcast. There has to ask a question function. If you haven't done that, you can still do that.

So with that, I would like to open up for Q&A.

So do we have any questions from the audience to start with? And please state your name as well, also for the rest of the group.

Yes. Daniel Thorsson from ABG. Two questions, one for Jens, how large share of your partner software in the revenues do you think are less connected to own software and services that could be kind of at risk when Autodesk is getting a bit closer to customers, sending invoices directly?

And then the second one to group management and also Head of M&A. When you allocate capital between the three divisions, you see obviously different scenarios, different M&A alternatives with different returns, which one or which segment do you find the most accretive potentials in today?

Jens, do you want to start with the question?

I can try. Can you hear me? Yes. Question one, then to repeat is kind of where do we see the risks in the 45% of the revenues that we have from partner revenues? I would say that's a very tricky question to answer in numbers, to be honest. But the majority of our -- if I answer it in a different way that if we use the 80%-20% rule and think about how much of the revenues from that the customer generates about 80% of our total gross profit that doesn't buy any services or any own IP. It's very close to 0.

So I think we have a good protection if that's what you asked for. I don't know if that answered your question correctly, but we feel pretty confident that we have strong and good customer relationships, and we don't really, how do you say, fear what you might fear with that question at the moment. So I don't know if that answers it, but that's the best answer I can give, I think.

And if I understand it correctly, let's go in the different sort of division, different regions here, where do we think we can get the most value out of investing in new M&A?

Yes. And the correct answer is probably in all areas. But maybe you want to -- within the different divisions, but elaborate what are we looking for, what type of acquisitions, that probably can give some value to that question.

Should I answer first and then pass over to the guys. Yes. All right. So I try to articulate that we're looking still to grow the customer base in Europe and across Americas, North America and Latin America. But we're also looking more strongly now than maybe in the history to expand the value proposition with companies who have built technology that we think could add value for the customer base we already have.

So in our case, we will both continue to expand the customer base because we already believe we have IP to that has value, but we will also look even more in the future than we have in the past on companies that can provide technology to the clients we already have to provide more value handing over to you.

If I want to -- if I continue, so the position is similar for TECHNIA as it is for symmetry, meaning can we strengthen our positions in existing markets by either acquiring customer bases, managing those bases with the same team we already have or grab possessions that complements our position in the existing market. Or if there is sort of big bolt-on markets that make logical sense where we can get clear #1 position based on M&A.

And thirdly, priority #1 for me is can we find good candidates with own IP that we can up-sell on our existing base, that's similar.

Yes. And from the process management perspective, I would say the bolt-on acquisitions in Sweden and Norway, strengthening our value proposition within GIS and case management is still 80% of our M&A pipeline. But we do have strengthened our efforts, and we have more people now looking for acquisitions even outside the Nordics. And then we're looking in areas we are particularly strong in within Sweden and areas that we know is relevant for other countries as well. Urban planning, urban development, building permits and also case management in certain areas. So -- but still, of course, the bolt-on acquisitions in Scandinavia are the most part of the pipeline.

And just to add to that question, is that basically, all the head of divisions have -- there are a lot of things that we can invest in. And then they get the opportunity to talk with Elisabeth on M&A getting the help but how do we make a case out of it? How do we value that and then a Elisabeth and division manager presented to me. And then I ask a lot of question and then we bring it to the Board of Directors. And on that journey, the guy who are closest to the acquisition candidate probably want to pay a little bit more because they see the more value, and then we get to the head of M&A, probably want to pay a little bit less. And then it goes to me, I want to pay a little bit less. And then I go to the Board of Directors and the Chairman, we want to pay even less. So we have sort of a journey to walk through on that. So that as a little bit about valuation.

So a better start high.

We said that.

You're exposing your secrets.

Should we take one question from the audience on the webcast as well. And I think this is for you, Magnus, it's from Jay Vleeschhouwer from Griffin Securities. A question relating to Dassault. Dassault as identified infrastructure in cities, AEC, as a strategic market but it's not now a significant business for them. How do you foresee this changing or not?

I want to be a bit careful with talking about my biggest partner. So I -- we have been following this initiative for the last 5 years. It's very exciting right now. We are not putting effort into this industry because our judgment is that the current offer is not mature enough for the channel. I -- let's see what happens.

So it's an opportunity.

It's an opportunity, but it's not one we currently are investing in.

Thank you, Magnus. Any more questions from the audience?

My name is Daniel Djurberg from Handelsbanken. I will start with the question to Kristina and that is on the net debt to EBITDA gearing target below 2.5x. Will this be a strict target? Or will you temporarily allow overshoots for a year or 2?

Let me put it this way that we have published this target, 2.5x. But should there be acquisitions that require a temporary change in that level we will go back to the Board and revisit the number. But it's important, of course, if we have strategic targets that are making up our progress going forward, we can't deny that to happen. So there will be discussions with the management and the Board.

Okay. And another question to all division heads really. Cybersecurity is obviously super important. We've seen [indiscernible] services, et cetera, getting hacked. Can you just comment on how you secure this and perhaps mostly in process management, we have a lot of decentralized businesses?

Yes. Yes, we have a comprehensive program on group level that where all companies within the group engage. And there's a set of activities that is sort of minimum required. Of course, we have some companies that has raise the bar even further, dependent on what customers they're working with. So I would say, of course, you have to be humble when it comes to cybersecurity. We have been under attack the last 10 years a couple of times. That's no secret. That's how it is in the market right now. But I would say that I sleep a lot better today compared to how I slept like 3 or 4 years ago. So I would say this is an area where we have developed incredibly strong over the last 2, 3 years. So -- well, you're never sure right, but it looks a lot better today.

I share that view for us. So I think it's -- there is very big awareness in the entire company about the importance of this and how the risk associated with making the wrong decision, so to speak. And now we are 27,000 certified in all countries. And I think that has helped -- that process has helped us a bit. It's not a guarantee, but...

Yes. And I agree, of course, with the gentlemen, Djurberg. And from our side, in addition to that, because we have the -- you don't want to speak too much about how exactly will we do this, of course, but we do have some common systems and processes in certain areas and the common call it, governance of day-to-day activities, monitoring of things. And we've also hired a CISO from the fintech industry that brings expertise in our company that we think helps us globally. So we're trying to take measures and have been taking a lot of measures to date.

I'll pass it back to you, if you want to say something more.

Andreas wants to add something.

Yes, I can also add. I think one important change today is that if you were attacked like 6, 7 years ago, the market was quite forgiven. But today, you're actually in a blame position. If you're attacked and you leak then you're in trouble. So this is even more important now compared to 5, 10 years ago. And I guess compared to 5, 10 years, we're investing a lot of more money and efforts.

We do have 2 people work in central full time with cybersecurity. We didn't have that 5 years ago. We're definitely investing more in hardware and digital solutions that are deployed across the group to protect us as well. So we're definitely investing more than we did 5 years ago. Does that mean that we are bulletproof? No one is, but we are trying as best as we can to make sure that we are getting in a better position as we go along. And it has to do both protecting ourselves being a wall, but also with the software that we provide making sure that it by itself is getting better from a cybersecurity perspective.

And it's also a huge part today of the due diligence process. 10 years ago, it was like 10 questions. Today, it's hundreds, Elisabeth. How many is it...

It's a lot. And we also have an external partner always helping out in the due diligence with the cybersecurity and I will also add that cybersecurity is one of very few things that are mandatory for the targets that we acquire. So after the acquisitions, they go directly in our cybersecurity program.

Good. Right. Thank you. Good question. Any more questions from the audience here in the room?

Fredrik Nilsson, Redeye. I want to start with the new margin target. It's above recent years also if looking at the pro forma figures. So could you perhaps elaborate on the way to 17% and also the time line?

I think probably for me to start on that. We are now roughly on a trailing around 15%. I mean at the same time, we're saying we're going to double our business in 5 years. So you need to see those 2 in combination, I think. So if you join that journey can double our business and at the same time, move our underlying profit margin for 15% to 17%. And if we are in a position to do 1% each year, do that every year. I think that's probably to be expected and probably at least what the Board of Directors would expect us to deliver as well going forward. So -- and it's going to be the usual things, work with operational efficiency, probably look at our offering, let's see if we can work with our acquisitions even better and just keep on grinding and doing it. So it's no magic in it. It's just keep on doing it, but a little bit better every year.

And one question for Andreas. You talked about going outside of the Nordics. And as far as I understand, at least for case management, it's usually challenging to sell a Swedish solution in Denmark, for example. So what synergies can you bring into Europe, if you're going there?

Yes. I think one important thing is what you mentioned, some kind of case management or GIS-related solutions are highly regulated to national or local laws, but not everything like if you look for the system pursue version and that stuff, it's actually quite similar between the countries. So that is definitely something that we take into account when we're looking into new geographies, what kind of solutions do we have that is state-of-the-art, perhaps for Sweden is at high digitalization level compared to other countries and see if that could be possible to, well, at least spread our know-how and parts of the solution.

So we have something to bring to the table, but we were never greenfield that's not the plan. So we will probably buy a, I don't know, a provider of building permits in another country, and we will support that company with the know-how and solutions we have. That would be the classic Addnode way, I would say. And we will never go to an unknown geography for us. I would probably piggyback on those guys and look where they have the flag put down in the market.

So thank you. I see we have some more questions in the room.

[indiscernible] from Landenburg. So a question on the EBITDA growth target. So it's EBITDA growth, absolute terms, not per share, as I understand it. Historically, you haven't used a lot of shares to acquire companies. But just to confirm, is that still the case? Or do you want to be able to use more shares to do acquisitions in the future?

Yes. We have done in a few instances when we acquired companies. I think it was 2020, and now also recently in 2025, when we acquired Genus, the employees had a large stake in that company that we acquired. So we made a new share issue to replace those shares and with a dilution of less than 1.5%.

Just to add to that. The plan is not to print new shares to make sure that we reach our financial goals. We would be -- as part of the discussion today that we believe that we will be able to generate the cash flow, and we have some of our banks here as well to make sure that we are in a good position to have a discussion with them rather to finance our growth. That's sort of the primary target.

So there were some more questions there.

Yes. Erik Larsson, SEB. So I have a couple of questions on competition. First off, how do you see the competitive landscape in terms of consolidation? And then how do you stand versus competition when it comes to combining your own software and partner software?

Should we probably do that one by one, competition?

Yes. Okay. Yes, in the world where we operate in, you could say, for Symetri in the Design Management division, there are a couple of a couple. There are three other companies out there in the world who are aiming at building a global operation, similar to our aim, you could say. And we feel today that we are in a position of strength when it comes to value proposition and what we can bring to bear for our clients. So we feel we have a portfolio that is proven and that truly can compete with anyone else out there in the marketplace. That's our position here and now.

Then if I take over, there is also, of course, a consolidation in a couple of global players in the Dassault ecosystem. My quite firm belief and understanding is that we have the strongest portfolio of own IP among those competitors. And I'm quite pleased with that situation.

Anything you want to add, Andreas?

Well, I guess, if you look at the competition, it's -- we definitely work as a market leader where we send in our offerings. We would never be outside the first 3 positions, and I cry every time, we are #2. So -- but I will say that we -- within GIS and case management in Sweden, we are the #1. We're still an outsider in Norway, but we're getting there.

So probably one from the digital audience then. And someone who's asking why are not allocating a greater share of your cash flow towards reinvesting in the business and -- it's from [ Oskar Nicholas ], sorry, from asking it. And he's basically asking so why don't we allocate more money to doing more acquisitions rather than shifting capital through dividends?

And I think probably for me to give us some answer for that. I think this one asked from our Board of Directors directly and also reflecting the shareholder structure and where we're coming from. We have been a company that has been paying a dividend and that's been part of the DNA. But having said that, you can see Kristina talked about our target for that. Historically, it was 50% and then a couple of years before directly change to further or 50% of our EPS to be shipped out to our shareholders, meaning that we probably have been going down from 50% to 30%. So we can see a shift in that, but I still expect us to be a company that pays dividend going forward. I think that's the expectation to set.

Any more questions from the room? Have one in the back there.

Yes. Mikael Laséen, DNB Carnegie. I'm just curious about the targets here, if you can sort of talk to us about the situation on the EBIT margins -- EBITDA margins for each segment and specifically for the PLM segment, where do you see margins trending ahead? Is sort of 9% where you could be given the product offering and the revenue streams or?

I know the answer, but I'm going to let Magnus bring it.

I think we are targeting to get back to last year's level to start with. And then my ambition is, and I think we can -- the target is to improve by 1% a year. So I think we should be able to do more than what you're indicating.

Okay. Sounds promising. And a follow-up. I was also curious about how we should think about the sort of cohort mix in terms of contract length, 1-year versus 3-year contracts. Where is the baseline? How can we sort of think about this the coming 5 years? Should we expect significant changes from here and that 3-year contracts continue to increase? Or is this the level where you sort of are comfortable and think that this is a good baseline to compare to?

Good question. Thank you again. Do you want to start, Jens, thinking about sort of development. I will help you.

I think, yes, it's a good level to compare with. But what I was trying to say is that the seasonality, the annual seasonality, if you look backwards, you could see that 2020, 2023 was a bit lower, whilst than '21, '22 and '24, '25 was a bit higher. I think that's seasonality, as I tried to indicate by saying that we are expecting low digits organic growth next year. And then we were expecting in 2027, 2028, to be supported by this 3-year renewal cycles of contracts. That's maybe the best guidance I could give before you give us something smarter, more clear than that.

No, what we're basically saying is that we -- 20, like Jens said, next year, we can see a lower portion of contracts that's going to be renewed to the totality. That's going to sort of -- that means that the good thing is that we are not losing those contracts. It's just when they are big in new. That means that what we mean by 2027, 2028, will be supported by that. And also looking at -- like you said in the history, we talked a lot about it, why did we see the drop down in 2023. That means that the 3-year contract that was renewed in 2023 are the one that's going to be renewed in 2026. So that means that it's going to be final.

We're not saying that it's not -- we're not pleased on interpreted it's going to be as bad as it was in 2023. I just want to say that we have a seasonality that we need to be aware of. And you are true that, we probably have a job to be even clear on this going forward. But 2026, we will not be supported by sort of a good renewal year that will come in 2027 and 2028.

So maybe one question from the digital world. We have one question here. Just to sum it up -- yes, I think it's from Jay here at Griffin Security, saying that -- he was at Autodesk University last week, and they presented a lot of good news with regard to the platform and et cetera, and spoke of enabling more options. Are there any sort of changes or takeaways that you can see there that might be of importance for you guys?

I think this year was a build on, of course, of last year, it was a build on the year before, but [indiscernible] announced is a couple of great things would we think about the form value proposition. So in the history and up until today, most of the design software solutions are desktop-based applications, Autodesk kind of step by step, started to build up something more cloud-based to do the design processes as well. They invested in a company called SpaceIntel -- sorry, not SpaceIntel, anyway, a company in Norway for 2, 3 years ago. Space maker is the name of the company. And that became the basis of what now is former and now they announced some further call it, capabilities of detailed design in that framework, which is just another step ahead of the former framework.

So we are very, very much looking forward to expanding the capabilities of this former cloud-based cloud-native platform because it makes it almost easier for us to build value adding capabilities on top of that platform.

And we're also, of course, very happy with all the announcements made last week about the AI capabilities that's going to come to all the users of Autodesk technologies, which we see great benefits of and opportunities around. So that's kind of the big thing we saw from last week, I think we're hard that we're happy with. So the former platform is going to be growing in the future and drive businesses for us and value creation for our customers.

Thank you, Jens. Any more questions from the audience? One more here?

Yes. Daniel Thorsson from ABG. Looking at your partner software revenues in Design and PLM, how has the margin profile of those developed over the last 5 to 10 years? And what do you model into the next 3 to 5 years?

It's easy to say, it's a little -- Andreas, do you want to start? Or I know the answer...

You can start.

Yes. But the thing is that what happens is when you're working with a partner, you -- it's slowly diminishing. I think that's the way to describe the margins, and that's sort of the name of the game. And that also benefits us being a little bit bigger, a little bit slower. That means that the guys who are able to do this on a bigger scale are still going to be able to sort of generate more money out or still have. But if any, the margins are slowly diminishing on that part of the offering.

Maybe diminishing is a strong word, Johan, but...

No, no, if any, it's not growing. But having said that, I think that's a very good thing, Magnus, what you're saying is that bringing new products out to the market usually have a higher margin and sort of the older products have a lower margin. That's the name again. So there are other products that are increasing...

The recurring business and the cloud-based business has similar margins as we had 10 years ago, some of the older parts of the portfolio where we have lost some margin. So there is incentives to sell new stuff.

Diminishing, not growing, it's probably a -- Yes. Thank you. Another question in the back.

[indiscernible] Founder. A question on AI, of course, so what are some AI game changers kind of broadly for each of the divisions? And if that's the case, if there are any game changers? Are there any -- can it be done in-house? Or does it require M&A? Or would it be kind of left to the third parties, the Autodesk or Dassault to implement instead?

Thank you. And I think, Andreas, it's probably you to start is for the Q&A.

Yes. Yes. If you look at game changers, I will start looking at our software development in AI agents. And I think today, even though we are accelerating the R&D already today, we are at sort of a generous phase because I speak to lots of CTOs or IT managers with budget responsibility. And both in-house at Addnode, but also at customers or peers. And so far, I haven't heard anyone telling me it's so great with AI. Now I need a smaller budget. So everyone still ask for the same budget or even more I would also like an additional budget to elaborate a bit with AI. That's the situation today.

Even though we are getting more efficient everybody is asking for more money. But I think that's okay. That's the generous phase. But what we will see in next year's coming is actually the companies and customers getting more efficient. I'm quite sure of that. And that's a game changer in my division, half of the employees are software developers. Will it be like that in 3 years from now? No. How exactly will it be? Hard to tell. But I would say, if you're looking for game changers, look at AI agents, speeding up R&D and software development.

And if I try to follow up on the question about where we're going to do it internally with our own R&D teams, if I got your question right, or through M&As or through our partners. I think the answer is all of the above. So for example, some of you who were out in the exhibition. So one of the areas of investment we made in a start-up company called Bimify, thank you, Alexander, for being here to exemplify that is one of the opportunities that we see with AI. There are lots of companies, of course, starting up to try to build interesting use cases. Some of them is still to be proven. Some of them are proven, but we are there, and we're building our network.

Secondly, of course, partnering with these large companies who are investing much more than we have the opportunity to do short term is, of course, helping us as well to learn and guide a lot of things. And internally, we're doing both R&D measurements like creating assistance inside of all of our products to make it easier to ask queries or prompt things and get the design done for you, for example. But we're also working quite a lot with the go-to-market engine because that's where we invest most of our resources in sales, marketing, customer success, et cetera. And there, we are investing quite a lot and seeing quite a lot of good return on investments already.

So I think all of the three is the answer and which one is going to be the best, maybe come back in 3 years, and we'll talk about it. Magnus, anything to add?

I think I'm not sure I have so much to add. I think it's the same. I mean we have to follow the path of our strategic partners. They are providing a lot of new capabilities. We haven't fully seen take off in all the dimension with our customers, which is a great potential, transforming our customers adopting these technologies. Then of course, we are putting a different type of Gen AI capabilities in our own IP. Andreas and my team has been showing this like your teams here, which is also exciting, where we typically can be a bit faster moving maybe than the big editors, bringing quicker wins to our customers. And then for us, internally, I think 3 years from now, there is a lot of potential for improving efficiency internally with go-to-market with operations with software development and also how we help our customers, exciting times.

I mean, it's an important question. There are a lot of opportunities and a lot of things to happen. And once a year, we gather sort of the top 100 management in Addnode Group in the different teams again. So next week, you want to meet, and we're going to spend 24 hours just discussing AI. What are we going to do? How are we going to do it and what can we do? So it's definitely a topic. And I guess last year, we did an internal survey so that we had at least 50 identifiable AI product running in the different companies in the different divisions. And if we would do the survey today, it will not be a less number.

So -- but like Andreas said, we haven't seen the effect yet. We're still trying to figure out how to move this thing forward.

I can add Johan also. I think that one thing I bring with me today is that we have to be better communicating with the customers, what we're doing within AI because otherwise, it's easy that you let someone other in into the market, an AI specialist. So I think that we have to be more transparent with all the initiatives we are doing because we are doing a lot but we haven't perhaps been superb communicating to the market. So that's also important.

Right. Great. Thank you. Great questions. Any more questions? We're available. I think it's time to close the Q&A and give a big thank you for all the viewers out there on the webcast, and you've been here all day. I hope you have your value worth this afternoon. And it was great to see you, and it was very great to introduce the management team as well. And hopefully, we'll see each other in less than 5 years. That means that we have doubled the best business. So looking forward to that. Thank you.

Thank you.